Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Solutions Hldg — Q4 2024 Earnings Presentation
37 slides from Aker Solutions Asa's earnings presentation, Feb 11, 2025
Slide 1: 4Q and FY 2024
Picture Comms 4Q and FY 2024 February 11, 2025 Kjetel Digre, CEO Idar Eikrem, CFO
Slide 2: Proven Track Record for Shareholder Value Creation Since Merger
4Q 2024 | Proven Track Record for Shareholder Value Creation Since Merger Total Shareholder Returns in Aker Solutions 2020-24 Main Achievements (2020 - 2024) Indexed: 100 = Closing price on July 17, 2020 800 +6x 700 28% annual average 600 revenue1 growth 500 400 >500 bpp margin1 improvement 300 200
Slide 3: Enabled by our People
4Q 2024 | Enabled by our People ▪ Diverse workforce of 11,800 people ▪ ~5,000 engineers (of which 1,000 in India) ▪ 2# most attractive employer in Norway1 ▪ 1,700 new employees hired in 2024 ▪ Investing in People and Capabilities ▪ Training and on-the-job experience ▪ Digital solutions and tools ▪ P
Slide 4: Improved Financial Performance and Solid Backlog
2024 | Improved Financial Performance and Solid Backlog Revenue Excluding special items EBITDA Excluding special items Order Intake Order Backlog 55 5.0 10% 70 75 65 70 50 4.5 9% 65 45 4.0 8% 60 45 40 7% 55 3.5 40 50 35 3.0 6% 35 45 30 30 40 2.5 25 35 25 2.0 4% 4% 30 20 20 3% 3% 25 1.5 15 15 20 2% 2
Slide 5: Solid Backlog of Projects with Balanced Risk
4Q 2024 | Solid Backlog of Projects with Balanced Risk Order Backlog by Type The Aker BP Alliance Model NOK 60.9 Alliances billion Balanced Risk Shared Upside ▪ Early engagement in project ▪ Incentive mechanisms for 1 2 3 ▪ No lump-sum exposure delivery on time & quality Alliance Reimbursable Lump S
Slide 6: Tender Value at about NOK 86 Billion
4Q 2024 | Tender Value at about NOK 86 Billion Several new orders announced in the first quarter of 2025 Tender Value Development NOK BILLION 90 60 Europe 30 78 NOK BILLION 0 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 Americas APAC 1 NOK BILLION Africa/ ME 5 NOK BILLION 2 NOK BILLION NOK
Slide 7: Balanced Risk-Reward in New Contracts
4Q 2024 | Balanced Risk-Reward in New Contracts Legacy Renewables Projects Norfolk Development (HVDC) East Anglia 3 Sunrise Hywind Tampen Norfolk Vanguard West Norfolk Vanguard East Norfolk Boreas (not yet awarded) ▪ Project-by-project tendering ▪ Up to 3 HVDC platforms ▪ Lump sum contracting models
Slide 8: Strong Growth in our Consulting Business
4Q 2024 | Strong Growth in our Consulting Business Aker Solutions’ dedicated consultancy arm launched in 2Q 2024 Ideas, Insights & Impact Across our Key Markets ENTR in 2024 +50% revenue growth Low Carbon Oil & Gas Ocean & Wind Electrical Transmission Hydrogen & CO2 Origination and Front-end Owner’s
Slide 9: Outlook
4Q 2024 | Outlook ▪ Solid secured backlog ▪ Majority being executed in well-proven alliance model ▪ Continued focus on predictable project execution ▪ Positive market outlook ▪ Early access to key customers through early-phase studies and technology development projects ▪ Large tender profile across
Slide 10: Financial Performance
Financial Performance February 11, 2025 Idar Eikrem, CFO
Slide 11: Key Figures
4Q 2024 | Key Figures NOK million 4Q 2024 4Q 2023 2024 2023 Total revenue Total revenue ex. special items1 15,710 15,708 11,066 11,021 53,201 53,193 36,262 36,107 Financials and Highlights Net Income from OneSubsea 166 172 789 172 Total revenue excl. special items and Net Income from OneSubsea 15,54
Slide 12: Renewables and Field Development
4Q 2024 | Renewables and Field Development Revenue Excluding special items EBITDA Excluding special items 12 900 10% Financials and Highlights 800 10 700 9% 8% 8% ▪ Revenue of NOK 11.5 billion in quarter 8 600 500 8% 7% 6% ▪ 54% increase compared to same period last year 6 400 5% 4% ▪ Annual revenue
Slide 13: Life Cycle
4Q 2024 | Life Cycle Revenue Excluding special items EBITDA Excluding special items 4.0 300 10% Financials and Highlights 3.5 250 3.0 8% ▪ Revenue of NOK 3.8 billion in quarter 200 2.5 6% 7% 7% 7% 6% ▪ 6% increase from same period last year 2.0 150 1.5 6% 4% ▪ High activity both in Norway and intern
Slide 14: OneSubsea
4Q 2024 | OneSubsea Revenue Excluding special items 1 EBITDA Excluding special items 1,2 12 2.5 20% Financials and Highlights ▪ Revenue1 of NOK 10.2 billion in quarter 19% 19% 10 2.0 18% 18% 17% 15% 8 1.5 ▪ Positive subsea market outlook 6 10% 4 1.0 ▪ EBITDA1,2 of NOK 1.8 billion in the quarter 5% 2
Slide 15: Net Cash Position of NOK 2.9 Billion
4Q 2024 | Net Cash Position of NOK 2.9 Billion Net Cash Position1 of NOK 2.9 billion Net Cash Position1 NOK BILLION ■ Robust financial position after payment of extraordinary dividend of NOK Net cash position 3.9 9.0 10 billion in December 2024 Movement in net cash position ■ NOK 1.3 billion positiv
Slide 16: Cash Generation
2024 | Cash Generation Change in Cash and Cash Equivalents NOK MILLION Financials and Highlights 199 501 636 889 ▪ Cash flow from operations of NOK 3.1 billion in 2024 3,226 1,447 ▪ Mainly driven by EBITDA contribution 4,632 ▪ Working capital slightly negative 9,033 ▪ CAPEX investments of NOK 1.4 bi
Slide 17: Summary Outlook
Summary Outlook ▪ Significant increase in revenues and improved margins ▪ Revenues in 2025 is expected to be between in 2024 compared to last year NOK 50 and 55 billion ▪ 2025 EBITDA-margin expected to be between 7.0% and ▪ Additional losses in our legacy renewables portfolio 7.5% excluding the net
Slide 18: Lk akorSie
Lk akorSie We solve global energy challenges gy for future generations S@ 4
Slide 19: Additional Information
Additional Information February 11, 2025
Slide 20: Order Intake and Backlog
4Q 2024 | Order Intake and Backlog Order Backlog by Execution Year NOK BILLION Order Backlog by Type Excluding contracts 50 awarded 1Q’25 42.1 40 11.5 30 18.8 20 30.0 10.8 10 7.5 0 2025 2026 -> 1 2 3 4 Renewables and Field Development Life Cycle Other Alliance Reimbursable Lump Sum Renewables and Tr
Slide 21: Timing of Selected Large Projects in the Portfolio, by Segment
Timing of Selected Large Projects in the Portfolio, by Segment Renewables and Field Development Life Cycle Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg FPSO Equinor 2017 2025 Aker BP EMM /Modific. Alliance (FA) Aker BP 2024 2026 Hug
Slide 22: Renewables and Transitional Energy Solutions
Renewables and Transitional Energy Solutions NOK million Revenue 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Total revenue (excl. special items) 8,274 27,461 7,145 8,826 9,114 11,021 36,107 11,477 12,827 13,181 15,708 53,193 Renewables and Transiti
Slide 23: Alternative Performance Measures
Alternative Performance Measures Basis for Preparation This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. The same measurement principles as presented in the Annual Report 2023 have been used when prepari
Slide 24: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Life Cycle Other/ Aker Solutions Aker Solutions Field Development eliminations NOK million 4Q 2024 4Q 2023 4Q 2024 4Q 2023 4Q 2024 4Q 2023 4Q 2024 4Q 2023 FY 2024 FY 2023 Revenue 11,469 7,025 3,776 3,547 292 298 15,537 10,870 52,410 36,05
Slide 25: Alternative Performance Measures
Alternative Performance Measures Financing Measures Alternative financing and equity measures are presented as they are indicators of the company’s Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used ability to obtain financing and service its debts. by manag
Slide 26: Alternative Performance Measures
Alternative Performance Measures Order Intake Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, as they are indicators of the company’s revenues and operations in the future. Order intake includes new agreed customer contracts in the peri
Slide 27: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Restructuring (0) 1 2 0 3 19 24 0 3 1 5 9 Non-qualifying hedges 2 12 5 10 3 (0) 17 (2) 0 (3) 1 (3) Other special items 7 10 11 16 15 46 87 2
Slide 28: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Revenue 8,248 27,468 7,213 8,880 9,094 10,870 36,057 11,273 12,661 12,940 15,537 52,410 Net profit equity accounted investees 27 33 0 1 8 197 205
Slide 29: Cash Flow
Cash Flow NOK million Cash flow 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 EBITDA continuing operations 220 647 229 193 194 551 1,166 967 1,206 1,204 1,191 4,568 EBITDA discontinued operations 727 2,288 640 906 1,225 0 2,772 - - - - - Change in ca
Slide 30: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Property, plant and equipment 3,596 3,762 4,246 2,883 3,487 3,830 3,956 4,043 4,053 Intangible assets including Goodwill 5,949 5,958 5,933 3,413 3,563 3,536 3,510 3,514 3,487 Right-of-us
Slide 31: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Total equity attributable to the parent 9,244 9,940 10,506 11,187 19,082 20,176 19,379 20,070 11,270 Non-controlling interests (4) (3) (3) (56) (129) (134
Slide 32: Split per Segment
Split per Segment NOK million Revenue 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Renewables and Field Development 4,553 14,857 4,128 5,369 5,576 7,447 22,520 8,003 9,402 9,217 11,469 38,090 Life Cycle 3,576 12,164 2,933 3,343 3,249 3,547 13,072 3,
Slide 33: Split per Segment
Split per Segment NOK million NCOA 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 NCOA (4,032) (4,920) (5,753) (6,631) (8,484) (8,774) (8,898) (7,655) (7,848) Order intake 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Renewab
Slide 34: Split per Segment – Excluding Special Items
Split per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 FY 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 FY 2024 Renewables and Field Development 185 488 171 208 239 362 979 617 887 774 820 3,097 Life Cycle 188 663 161 164 163 197 6
Slide 35: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 4Q 2023 4Q 2024 Norway 82% 88% Europe 11% 7% Americas 4% 3% Asia Pacific 2% 1% Africa 0% 2% Total 100% 100% Total backlog (NOK billion) 72.7 60.9 Fourth-Quarter Presentation 35
Slide 36: Aker Solutions
| Aker Solutions
Slide 37: Copyright and Disclaimer
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