Slide 1: First-quarter results 2013
Preferred partner 1Q First-quarter results 2013 Fornebu, 8 May 2013 Øyvind Eriksen | Executive Chairman Leif Borge | Chief Financial Officer Public © 2013 Aker Solutions Slide 1 8 May 2013 First-quarter results 2013 Preferred partner
Slide 2: Agenda | 1Q 2013
Agenda | 1Q 2013 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Q&A Leif Borge Public © 2013 Aker Solutions Slide 2 8 May 2013 First-quarter results 2013 Preferred partner
Slide 3: 1Q 2013 | Key figures
1Q 2013 | Key figures Revenues and EBITDA Order intake and backlog NOK billion NOK billion Revenues EBITDA Intake Backlog 14 3,5 30 80 12 3 70 25 71.7 10 2,5 25.5 60 11.1 20 50 8 2 15 40 6 1,5 30 10 4 1 20 2 0.9 5 0,5 10 0 0 0 0 4Q 1 2 3 4 1Q 4Q 1 2 3 4 Q1 4Q 1 2 3 4 1Q 4Q 1 2 3 4 1Q 2012 2013 2012
Slide 4: 1Q 2013 | Revenue per business area
1Q 2013 | Revenue per business area 1% 4% 2% 4% MMO 5% 26% DRT SUB 10% ENG WIS UMB OMA 21% PRS 27% MLS Public © 2013 Aker Solutions Slide 4 8 May 2013 First-quarter results 2013 Preferred partner
Slide 5: Subsea (SUB)
Subsea (SUB) ■ EBITDA margin 10.6% ■ Record order intake in key markets ■ Statoil in Norway ■ Total in Congo ■ Petrobras in Brazil ■ Expect margin improvement in 2013 vs 2012 Public © 2013 Aker Solutions Slide 5 8 May 2013 First-quarter results 2013 Preferred partner
Slide 6: Drilling Technologies (DRT)
Drilling Technologies (DRT) ■ EBITDA margin 10% ■ Margin impacted by slower services activity and losses at mining subsidiary ■ Project execution on track ■ Active market, but slower contract negotiations ■ Management changes Public © 2013 Aker Solutions Slide 6 8 May 2013 First-quarter results 2013
Slide 7: Maintenance, Modifications and Operations (MMO)
Maintenance, Modifications and Operations (MMO) ■ EBITDA margin 6.6% ■ Margin affected by increased costs at Ekofisk Zulu project due to accelerated work and repairs of cables from supplier ■ On track to deliver platform as planned this summer Public © 2013 Aker Solutions Slide 7 8 May 2013 First-qu
Slide 8: Engineering (ENG)
Engineering (ENG) ■ EBITDA margin 7.2% ■ Ekofisk Zulu impacted margin ■ High tendering activity in Front- End & FEED market ■ Slower backlog progress could impact margin in short term Public © 2013 Aker Solutions Slide 8 8 May 2013 First-quarter results 2013 Preferred partner
Slide 9: Umbilicals (UMB)
Umbilicals (UMB) ■ EBITDA margin -15.9% ■ 1Q loss of NOK 63 million after project writedowns ■ Capacity constraints at Moss plant caused delays ■ Expect low but positive EBITDA margin in 2Q ■ Management changes Public © 2013 Aker Solutions Slide 9 8 May 2013 First-quarter results 2013 Preferred part
Slide 10: PRS | WIS | MLS
PRS | WIS | MLS Process Systems (PRS) ■ EBITDA margin 7.3% ■ Revenue and margin recovery continues Well Intervention Services (WIS) ■ EBITDA margin 16.4% ■ Delayed servicing campaigns reduced 1Q revenue ■ Good demand for services but spare capacity may impact margins short term Mooring & Loading Sys
Slide 11: Oilfield Services & Marine Assets (OMA)
Oilfield Services & Marine Assets (OMA) ■ EBITDA margin -51.4% ■ 1Q loss of NOK 54 million from two idle vessels ■ Expect additional losses from idle vessels in 2Q Public © 2013 Aker Solutions Slide 11 8 May 2013 First-quarter results 2013 Preferred partner
Slide 12: Higher energy consumption supports market growth
Higher energy consumption supports market growth World Liquid Fuels Consumption (actual and forecast) ■ Demand driven by population 92 growth and GDP growth Million barrels per day (mmbpd) 90 88 Actual (Mar 2013) ■ Recovery, to new peaks in May 2012 Forecast 86 May 2011 Forecast consumption (90 mln
Slide 13: Outlook
Outlook Outlook ■ Continued high level of tender activity and positive long-term trend ■ Slower decision-making processes may impact order intake for PRS, MLS, ENG ■ Expect improved financial performance in 3Q and 4Q 2013 vs same quarters a year earlier Public © 2013 Aker Solutions Slide 13 8 May 20
Slide 14: Agenda | 1Q 2013
Agenda | 1Q 2013 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Q&A Leif Borge Public © 2013 Aker Solutions Slide 14 8 May 2013 First-quarter results 2013 Preferred partner
Slide 15: Consolidated income statement
Consolidated income statement (NOK million) 1Q 13 1Q 12 2012 Operating revenues and other income 11 060 9 837 44 922 EBITDA 868 1 040 4 739 Of which related to non-recurring items - 3251 Of which related to hedging 3 26 36 Depreciation and amortisation (339) (231) (1 166) EBIT 529 809 3 573 Net fina
Slide 16: 1Q 2013 | Consolidated cash flow, capex and NCOA
1Q 2013 | Consolidated cash flow, capex and NCOA ■ Cash flow from operations negative Cash flow NOK million NOK 2.0 billion in the quarter 1600 200 9200 ■ Group NCOA of NOK 4.7 billion (Q4 2000 5400 2012: NOK 1.9 billion) ■ Several projects in the Subsea Business Area and the Drilling Business Area
Slide 17: 1Q 2013 | Financial position
1Q 2013 | Financial position ■ 1Q 2013 net debt of NOK 9.2 billion (Q4 2012: net debt of NOK 5.4 billion) ■ Aker Solutions’ liquidity reserves were solid at the end of the quarter with cash and bank deposits of NOK 2.2 billion. Undrawn and committed long-term bank revolving credit facilities amounte
Slide 18: Engineering Product Solutions
Engineering Product Solutions Engineering Process Systems ■ Earnings impacted by increased costs at the ■ Revenues increased 49 percent compared Ekofisk Zulu project to first quarter 2012 ■ Front End activities continue to be high ■ Bidding activity remained high ■ Engineering India still suffering
Slide 19: Product Solutions
Product Solutions Subsea Umbilicals ■ Improved margins compared to previous quarters ■ Very high load at the plant in Norway causing ■ Diversity of contract awards,very high order intake quality costs ■ High tender activity in all business segments ■ Following a thorough review of the entire project
Slide 20: Product Solutions
Product Solutions Drilling Technologies Mooring and Loading Systems ■ In general, good execution ■ Revenue down due to weak Marine ■ EBITDA margin slightly lower than the average in market and some lost/delayed awards recent quarters ■ EBITDA margin was low due to low ■ Slow start for the DLS segmen
Slide 21: Field-Life Solutions
Field-Life Solutions MMO Well Intervention Services ■ Continued high activity at the fabrication yard ■ Revenues and EBITDA somewhat impacted by in Egersund seasonal effects in the North Sea ■ Earnings impacted by low productivity and ■ The international operations have profitability increased costs
Slide 22: Field-Life Solutions
Field-Life Solutions Oilfield Services and Marine Assets Asset values Total NOK 5.3 bn Skandi Santos (Petrobras) 465 Very strong performace with 99 % uptime Aker Oildfield Services 750 in 1Q Ezra Skandi Aker (Total) The vessel has been off-hire and 4100 Aker DOF Deepwater undergone preparation f
Slide 23: Order backlog and order intake
Order backlog and order intake Order backlog by execution date Order intake NOK 25.5 bn NOK billion NOK million 30 26 SUB 17 835 16 MMO 3 450 ENG 2 055 2013 2014 Later UMB 1 074 Order backlog of NOK 71.7 bn DRT 889 NOK million 70 000 ENG DRT SUB MMO Other WIS 311 60 000 50 000 MLS 182 40 000 30 000
Slide 24: Agenda | 1Q 2013
Agenda | 1Q 2013 Introduction Øyvind Eriksen Executive chairman Financials Leif Borge President & CFO Q&A session Øyvind Eriksen Q&A Leif Borge Public © 2013 Aker Solutions Slide 24 8 May 2013 First-quarter results 2013 Preferred partner
Slide 25: Public © 2013 Aker Solutions Slide 25 8 May 2013
Public © 2013 Aker Solutions Slide 25 8 May 2013 First-quarter results 2013 Preferred partner
Slide 26: Additional information
Preferred partner 1Q Additional information Public © 2013 Aker Solutions Slide 26 8 May 2013 First-quarter results 2013 Preferred partner
Slide 27: Consolidated cash flow
Consolidated cash flow Cash flow – NOK million 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 FY 2012 1Q 2013 EBITDA 1 440 636 322 1 047 3 445 1 040 1 357 1 122 1 220 4 739 868 Change in cash flow from operating activities (259) (399) 905 135 382 (1 162) (1 844) (1 173) 1 22
Slide 28: Consolidated assets
Consolidated assets Assets – NOK million 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Property, plant and equipment 7 217 6 970 7 343 7 409 7 732 8 179 8 518 10 041 10 418 Intangible assets 7 183 5 911 6 409 6 843 6 776 7 040 7 162 7 454 8 693 Financial assets (non-current) 1 336 1 165 859
Slide 29: Consolidated debt and equity
Consolidated debt and equity Debt and equity - NOK million 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 Shareholder's equity 13 354 12 494 10 201 10 797 11 360 10 790 11 363 11 823 12 345 Minority interests 168 163 181 169 173 159 170 157 164 Non IB liabilities (non-current) 2 604 2 532 2 7
Slide 30: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 FY 2012 1Q 2013 Product Solutions 4 345 4 306 4 514 6 541 19 706 5 394 6 620 6 198 7 079 25 291 6 384 Field Life Solutions 2 643 2 899 2 920 3 716 12 178 3 261 3 709 3 673 3
Slide 31: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Revenues 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 FY 2012 1Q 2013 Subsea 1 657 1 782 1 927 2 638 8 004 2 445 3 401 2 899 3 429 12 174 3 023 Umbilicals 435 506 420 685 2 046 413 506 518 561 1 998 397 Drilling Technologies 1 6
Slide 32: Split per business segment in Aker Solutions
Split per business segment in Aker Solutions Order intake 1Q 2011 2Q 2011 3Q 2011 4Q 2011 FY 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 FY 2012 1Q 2013 Subsea 2 555 4 415 2 473 1 991 11 434 2 423 3 203 1 908 2 348 9 882 17 835 Umbilicals 419 1 080 283 524 2 306 297 790 500 31 1 618 1 074 Drilling Technolo
Slide 33: Public © 2013 Aker Solutions Slide 33 8 May 2013
Public © 2013 Aker Solutions Slide 33 8 May 2013 First-quarter results 2013 Preferred partner
Slide 34: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any for