Slide 1: 3Q 2019
3Q 2019 Fornebu, October 23, 2019 Luis Araujo and Ole Martin Grimsrud 2019 © Aker Solutions
Slide 2: Agenda | 3Q 2019
Agenda | 3Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2019 © Aker Solutions Third-Quarter Results 2019 October 23, 2019 Slide 2
Slide 3: Main Developments
Main Developments Johan Sverdrup on Stream Subsea Tree #100 to Petrobras Photo: Equinor ■ Opening of the giant Johan ■ Ærfugl and Skogul deliveries ■ Northern Lights first installation Sverdrup field complete ■ Subsea tree number 100 delivered ■ First oil from the Mariner Field ■ Lingshui fabricatio
Slide 4: Key Figures | 3Q 2019
Key Figures | 3Q 2019 Revenue EBITDA1 Order Intake Order Backlog 7.1 NOK BILLION 553 NOK MILLION 4.7 NOK BILLION 27.4 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 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 3
Slide 5: New Orders
New Orders UAE Norway Umbilical Contract From ADNOC for the EPC Contract for Subsea Compression Dalma Gas Development Project Module on the Åsgard Field South Korea International Consortium to Develop 500-Megawatt Lowest Bidder for Subsea Manifolds in a Offshore Floating Wind Farm Deepwater Field 20
Slide 6: Continued Demand for Early-Phase Capabilities
Continued Demand for Early-Phase Capabilities ■ Awarded 37 front-end contracts, resulting in a total 3Q 2019 3Q 2018 of 111 won to date in 2019 ■ 22 of these have led on to FEED studies so far this year ■ 5 have led on to full projects Total front-end studies 37 33 and we expect more to come 5 6 ■ S
Slide 7: Leading a Sustainable Energy Future
20/25/30 Leading a Sustainable Energy Future 2019 © Aker Solutions
Slide 8: Leading a Sustainable Energy Future
Leading a Sustainable Energy Future Renewables Low Carbon Conventional 20% 25% 2019 © Aker Solutions Third-Quarter Results 2019 October 23, 2019 Slide 8
Slide 9: Enabling Sustainability: Capturing the Carbon Market
Enabling Sustainability: Capturing the Carbon Market Power plant CO2 capture CO2 / oil Gas separation separation CO2 CO2 CO2 + oil Natural gas + CO2 EOR Aquifier storage Gas reservoir 2019 © Aker Solutions
Slide 10: Outlook
Outlook ■ Tendering for NOK 55 billion ■ Front-end continues to generate new opportunities ■ Strong execution ■ Renewed focus on renewables and low carbon initiatives ■ All supporting long-term growth 2019 © Aker Solutions Third-Quarter Results 2019 October 23, 2019 Slide 10
Slide 11: Agenda | 3Q 2019
Agenda | 3Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2019 © Aker Solutions Third-Quarter Results 2019 October 23, 2019 Slide 11
Slide 12: 3Q 2019 | Income Statement
3Q 2019 | Income Statement 1 (NOK million) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 2018 Revenue 7,134 6,541 21,915 18,278 25,232 ■ Third quarter revenue up 9% year-on-year EBITDA 553 463 1,810 1,327 1,810 ■ Continued high activity in Field Design EBITDA margin 7.8% 7.1% 8.3% 7.3% 7.2% ■ Increased activity
Slide 13: 3Q 2019 | Cashflow and Financial Position
3Q 2019 | Cashflow and Financial Position ■ Working capital1 at NOK 1.3 billion, and NOK 828 Debt Maturity Profile2 NOK million million when excluding the effects of IFRS 16 Drawn debt Undrawn revolving credit facility 6,000 ■ Cashflow from operations at minus NOK 173 million 5,000 ■ Cashflow from i
Slide 14: Projects
Projects ■ Continued high activity mainly driven by Field ■ EBIT margin1 of 4.4% vs 4.9% a year earlier Design and growth in Subsea ■ Order intake of NOK 3.3 billion, equal to ■ Revenue up 8% vs last year to NOK 5.6 billion 0.6x book-to-bill ■ EBITDA margin1 of 8.1% vs 7.2% a year earlier ■ Order ba
Slide 15: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Activity driven by work awarded over the last 18 months, ■ High Brownfield activity on several ongoing modification with several projects still in early phases of execution and hook-up jobs in Field Design continued into 3Q ■ Revenue up 4% to NOK 2.2 billi
Slide 16: Services
Services ■ Increased activity level in Production Asset Services ■ EBIT margin1 of 7.2% vs 11.6% a year earlier ■ Revenue rose 21% vs last year to NOK 1.5 billion ■ Order intake of NOK 1.4 billion, equal to ■ EBITDA margin1 decreased to 11.2% vs 14.9% a 0.9x book-to-bill year earlier ■ Order backlog
Slide 17: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 3Q 2019 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion Potential additional revenue from existing agreements Order backlog Order intake 12.0 40 Projects backlog Services backlog 36.1 35.1 30 33.3 5.3 3.4 29.5 5.2
Slide 18: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and IFRS 16 Leasing ■ Positive long-term outlook in both Cashflow ■ New IFRS 16 Leasing standard traditional offshore and new markets effective from January 1, 2019 ■ Working Capital likely to fluctuate ■ Market activity is increasing, but with lar
Slide 19: Agenda | 3Q 2019
Agenda | 3Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2019 © Aker Solutions Third-Quarter Results 2019 October 23, 2019 Slide 19
Slide 20: Additional Information
Additional Information 2019 © Aker Solutions Third-Quarter Results 2019 October 23, 2019 Slide 20
Slide 21: Special Items and IFRS 16 Leasing
Special Items and IFRS 16 Leasing NOK million, (Gain) / Loss Special items (EBITDA) 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 Restructuring 8 (2) 86 7 5 31 (3) 39 3 10 12 Non-qualifying hedges 10 (6) 10 (3) (4) (3) (1) (11) (2) (4) 5 (Gain) loss sale of
Slide 22: General
General Basis for Preparation Alternative Performance Measures Special Items Impacting Profit Measures Aker Solutions discloses alternative performance measures in NOK million Projects Services Other/eliminations Aker Solutions This presentation provides financial addition to those normally required
Slide 23: General
General Financing Measures Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess the borrowing capacity of a company. The ratio shows how many years it would take for a company to pay Alternative financing and equity measures are present
Slide 24: General
General 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 signed contracts in the period in addition to expansion of exi
Slide 25: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 Revenue 5,419 6,444 22,461 5,483 6,254 6,541 6,954 25,232 7,256 7,525 7,134 Operating expenses (5,017) (5,986) (20,941) (5,057) (5,815) (6,078) (6,471) (
Slide 26: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Property, plant and equipment 3,341 3,316 3,077 2,977 2,905 3,044 2,945 2,916 3,031 Intangible assets 5,770 5,814 5,695 5,646 5,596 5,686 5,690 5,578 5,669 Right-of-use assets - - - - -
Slide 27: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Total equity attributable to the parent 6,501 6,981 6,822 6,828 6,849 7,502 7,241 7,044 7,355 Non-controlling interests 113 67 25 28 45 106 107 123 110 To
Slide 28: Cashflow
Cashflow NOK million Cashflow 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 EBITDA continuing operations 401 458 1,519 425 439 463 483 1,810 634 623 553 Change in cashflow from operating activities (615) 702 (932) 107 (121) (506) (370) (890) (937) (568) (726
Slide 29: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 Projects 4,184 5,179 17,660 4,239 4,862 5,211 5,608 19,920 5,952 6,015 5,627 Services 1,165 1,170 4,560 1,159 1,337 1,277 1,324 5,096 1,299 1,503 1,549 Other 75 105 264 89 58
Slide 30: Split Per Segment
Split Per Segment NOK million NCOA 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 Projects 151 (712) (1,350) (1,540) (1,067) (1,141) (262) (66) 502 Services 595 511 550 646 633 693 908 936 896 Other (731) (643) (622) (521) (591) (306) (398) (139) (71) NCOA 15 (844) (1,422) (
Slide 31: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 Projects 323 405 1,292 322 328 373 348 1,371 478 475 455 Services 157 151 607 135 173 190 194 692 187 210 174 Other (59) (74) (
Slide 32: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 Subsea 1,801 2,471 8,336 1,956 2,084 2,079 2,042 8,162 2,439 2,343 2,171 Field Design 2,386 2,776 9,402 2,284 2,810 3,170 3,551 11,814 3,512 3,680 3,450 Elim
Slide 33: 2019 © Aker Solutions
2019 © Aker Solutions
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