Slide 1: 2Q 2019
2Q 2019 Fornebu, July 17, 2019 Luis Araujo and Svein Stoknes 2019 © Aker Solutions
Slide 2: Agenda | 2Q 2019
Agenda | 2Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO 2019 © Aker Solutions Second-Quarter Results 2019 July 17, 2019 Slide 2
Slide 3: Main Developments
Main Developments Valhall Flank West Skogul Photo: Aker BP ■ Major projects progressing ■ Key deliveries ■ Raising ownership in Principle well ■ Subsea Alliance – first SPS Power to 23 percent ■ Valhall Flank West installed delivery to Skogul ■ NOK 1 billion bond issue ■ Mechanical completion on ■ T
Slide 4: Key Figures | 2Q 2019
Key Figures | 2Q 2019 Revenue EBITDA1 Order Intake Order Backlog 7.5 NOK BILLION 623 NOK MILLION 3.8 NOK BILLION 29.5 NOK BILLION Excl. special items 8 700 7 40 7 600 6 35 6 30 500 5 5 25 400 4 4 20 300 3 3 15 200 2 2 10 1 100 1 5 0 0 0 0 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 2
Slide 5: New Orders
New Orders Aker BP Multiple Clients Frame agreement to provide vertical Umbilicals contracts totaling more than subsea trees NOK 1 billion Petronas Twence Umbrella contract for engineering services Carbon capture and utilization contract in in Malaysia the Netherlands 2019 © Aker Solutions Second-Qu
Slide 6: Continued Demand for Early-Phase Capabilities
Continued Demand for Early-Phase Capabilities ■ Awarded 38 Front-end contracts, resulting in a total of 1H 2019 1H 2018 74 won to date in 2019 ■ 17 of these have led on to FEED studies ■ Two have led on to Total front-end studies 74 73 full projects and we expect more to come ■ Strategically importa
Slide 7: Tendering 2019-2020
Tendering 2019-2020 20 NOK BILLION 2 NOK 3.5 BILLION NOK BILLION 9.5 NOK BILLION 12.5 NOK BILLION 7.5 NOK BILLION 2019 © Aker Solutions Second-Quarter Results 2019 July 17, 2019 Slide 7
Slide 8: Outlook
Outlook ■ Tendering for NOK 55 billion ■ Front-end continues to generate new opportunities ■ Strong execution ■ Renewed focus on low carbon initiatives ■ All supporting top line growth and stable margins 2019 © Aker Solutions Second-Quarter Results 2019 July 17, 2019 Slide 8
Slide 9: Agenda | 2Q 2019
Agenda | 2Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO 2019 © Aker Solutions Second-Quarter Results 2019 July 17, 2019 Slide 9
Slide 10: 2Q 2019 | Income Statement
2Q 2019 | Income Statement1 (NOK million) 2Q 2019 2Q 2018 1H 2019 1H 2018 2018 Revenue 7,525 6,254 14,781 11,737 25,232 ■ Second quarter revenue up 20% EBITDA 623 439 1,257 864 1,810 year-on-year EBITDA margin 8.3% 7.0% 8.5% 7.4% 7.2% ■ Continued high activity in Field Design EBITDA ex. special item
Slide 11: 2Q 2019 | Cashflow and Financial Position
2Q 2019 | Cashflow and Financial Position ■ Cashflow from operations at NOK 55 million Debt Maturity Profile2 NOK million ■ Working capital1 at NOK 731 million, and NOK 231 Drawn debt Undrawn revolving credit facility 6,000 million when excluding the effects of IFRS 16 5,000 ■ Net interest-bearing d
Slide 12: Projects
Projects ■ Continued high activity mainly driven by Field Design ■ EBIT margin1 of 4.5% vs 4.2% a year earlier and growth in Subsea on the back of work won over the last 18 months ■ Order intake of NOK 2.9 billion, equal to ■ Revenue up 24% vs last year to NOK 6 billion 0.5x book-to-bill ■ EBITDA ma
Slide 13: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Activity driven by work awarded over the last 18 months, ■ Continued high Brownfield activity on several ongoing with several projects still in early phases of execution modification and hook-up jobs in Field Design ■ Revenue up 12% to NOK 2.3 billion vs 2
Slide 14: Services
Services ■ Increased activity level in production asset services ■ EBIT margin1 of 9.8% vs 9.9% a year earlier ■ Revenue rose 12% vs last year to NOK 1.5 billion ■ Order intake of NOK 0.9 billion, equal to ■ EBITDA margin1 increased to 14.0% vs 13.0% a 0.6x book-to-bill year earlier ■ Order backlog
Slide 15: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 2Q 2019 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion 10.5 Potential additional revenue from existing agreements Order backlog Order intake 9.8 40 Projects backlog Services backlog 37.0 36.1 35.1 30 33.3 2.5 2.8
Slide 16: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and IFRS 16 Leasing ■ Positive long-term offshore, deepwater Cashflow ■ New IFRS 16 Leasing standard outlook effective from January 1, 2019 ■ Capex and R&D ≈ 3% of 2019 ■ Market activity is increasing, but revenue, with flexibility ■ Annual operati
Slide 17: Agenda | 2Q 2019
Agenda | 2Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO 2019 © Aker Solutions Second-Quarter Results 2019 July 17, 2019 Slide 17
Slide 18: Additional Information
Additional Information 2019 © Aker Solutions Second-Quarter Results 2019 July 17, 2019 Slide 18
Slide 19: Special items and IFRS 16 Leasing
Special items and IFRS 16 Leasing NOK million, (Gain) / Loss Special items (EBITDA) 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 Onerous leases 6 - 33 40 - - - 15 15 (0) (0) Restructuring 81 8 (2) 86 7 5 31 (3) 39 3 10 Non-qualifying hedges 4 10 (6) 10 (3)
Slide 20: Income Statement
Income Statement NOK million Income statement consolidated 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 Revenue 5,425 5,419 6,444 22,461 5,483 6,254 6,541 6,954 25,232 7,256 7,525 Operating expenses (5,120) (5,017) (5,986) (20,941) (5,057) (5,815) (6,078) (
Slide 21: Balance Sheet
Balance Sheet NOK million Assets 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Property, plant and equipment 3,564 3,341 3,316 3,077 2,977 2,905 3,044 2,945 2,916 Right-of-use assets - - - - - - - 4,184 3,848 Intangible assets, including deferred tax assets 6,525 6,344 6,44
Slide 22: Cashflow
Cashflow NOK million Cashflow 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 EBITDA continuing operations 305 401 458 1,519 425 439 463 483 1,810 634 623 Change in cashflow from operating activities (762) (615) 702 (932) 107 (121) (506) (370) (890) (937) (568
Slide 23: Split Per Segment
Split Per Segment NOK million Revenue 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 Projects 4,232 4,184 5,179 17,660 4,239 4,862 5,211 5,608 19,920 5,952 6,015 Services 1,156 1,165 1,170 4,560 1,159 1,337 1,277 1,324 5,096 1,299 1,503 Other 43 75 105 264 89
Slide 24: Split Per Segment
Split Per Segment NOK million NCOA 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 Projects (239) 151 (712) (1,350) (1,540) (1,067) (1,141) (262) (66) Services 603 595 511 550 646 633 693 908 936 Other (818) (731) (643) (622) (521) (591) (306) (398) (139) NCOA (454) 15 (844)
Slide 25: Split Per Segment – Excluding special items
Split Per Segment – Excluding special items NOK million EBITDA (excl. special items) 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 Projects 295 323 405 1,292 322 328 373 348 1,371 478 475 Services 147 157 151 607 135 173 190 194 692 187 210 Other (42) (59) (
Slide 26: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2017 1Q 2019 2Q 2019 Subsea 1,883 1,801 2,471 8,336 1,956 2,084 2,079 2,042 8,162 2,439 2,343 Field Design 2,353 2,386 2,776 9,402 2,284 2,810 3,170 3,551 11,814 3,512 3,680 Elim
Slide 27: 2019 © Aker Solutions
2019 © Aker Solutions
Slide 28: 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