Slide 1: 1Q 2019
1Q 2019 Fornebu, April 30, 2019 Luis Araujo and Svein Stoknes © 2019 Aker Solutions
Slide 2: Agenda | 1Q 2019
Agenda | 1Q 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 First-Quarter Results 2019 April 30, 2019 Slide 2
Slide 3: Main Developments
Main Developments Johan Sverdrup Installation Airborne Oil & Gas Photo: Equinor ■ Major projects progressing ■ International breakthrough for ■ Investing in new technology according to plan subsea compression technology development ■ Johan Sverdrup ■ Strengthening customer ■ Airborne Oil & Gas ■ Kao
Slide 4: Key Figures | 1Q 2019
Key Figures | 1Q 2019 Revenue EBITDA1 Order Intake Order Backlog 7.3 NOK BILLION 634 NOK MILLION 5.5 NOK BILLION 33.3 NOK BILLION Excl. special items 8 700 10 40 7 600 35 8 6 30 500 5 25 6 400 4 20 300 4 3 15 200 2 10 2 1 100 5 0 0 0 0 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 1Q 1
Slide 5: New Orders
New Orders Chevron Petrobras Petrobras Jansz FEED & Master Subsea Service Frame Storage Tanks Service, Contract, Australia Agreement Extension, Brazil Brazil Wintershall Equinor Multiple Clients Nova Digital Twin, Norway CCS Subsea Injection, 31 Front-End Study Awards Northern Lights, Norway Globall
Slide 6: Subsea Gas Compression
Subsea Gas Compression International Breakthrough Master Contract with FEED as first call-off Operator Chevron with ExxonMobil & Shell Boosting recovery Substantial cost and efficiency gains Significant size reduction Lower carbon footprint © 2019 Aker Solutions
Slide 7: Life-of-Field Digital Solutions
Life-of-Field Digital Solutions Integrated. Innovative. Insight. Reduced Cost Increased Efficiency Improved Predictability © 2019 Aker Solutions
Slide 8: Growing Offshore and Subsea Markets
Growing Offshore and Subsea Markets Offshore Final Investment Decisions (FIDs) ■ Significant underinvestment past four 150 Actual Potential years Number of offshore FIDs 128 +18% ■ Record high free cash flow among E&Ps 120 114 105 100 89 78 56 46 62 ■ New projects emerging 50 ■ E&P spending forecast
Slide 9: Outlook
Outlook ■ Active but competitive markets ■ Tendering for NOK 55 billion ■ Growing interest in new markets ■ Front-end generating new opportunities ■ Healthy order backlog ■ Strong execution ■ All supporting top line growth and stable margins © 2019 Aker Solutions First-Quarter Results 2019 April 30,
Slide 10: Agenda | 1Q 2019
Agenda | 1Q 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 First-Quarter Results 2019 April 30, 2019 Slide 10
Slide 11: 1Q 2019 | Income Statement
1Q 2019 | Income Statement1 (NOK million) 1Q 20191 1Q 2018 2018 Revenue 7,256 5,483 25,232 ■ First quarter revenue up 32% year-on-year EBITDA 634 425 1,810 ■ Continued high activity on several ongoing EBITDA margin 2 8.7% 7.8% 7.2% Field Design projects EBITDA ex. special items 636 384 1,812 ■ Incre
Slide 12: 1Q 2019 | Cashflow and Financial Position
1Q 2019 | Cashflow and Financial Position ■ Cashflow from operations at minus NOK 303 million Debt Maturity Profile2 NOK million ■ Working capital1 at NOK 248 million, and minus NOK 6,000 Drawn debt Undrawn revolving credit facility 62 million when excluding the effects of IFRS 16 5,000 ■ Net intere
Slide 13: Projects
Projects ■ Continued high activity on several ongoing Field Design ■ EBIT margin1 of 4.7% vs 4.7% a year earlier projects and increased activity in Subsea on the back of work won over the last 18 months ■ Order intake of NOK 3.5 billion, equal to ■ Revenue up 40% vs last year to NOK 6 billion 0.6x b
Slide 14: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Increased activity on the back of work awarded over the ■ Continued high Brownfield activity on several ongoing last 18 months modification and hook-up jobs ■ Revenue up 25% to NOK 2.4 billion vs 1Q 2018 ■ Revenue up 54% to NOK 3.5 billion vs 1Q 2018 ■ Ord
Slide 15: Services
Services ■ Increased activity level in production asset services ■ EBIT margin1 of 9.3% vs 8.0% a year earlier ■ Revenue rose 12% vs last year to NOK 1.3 billion ■ Strong order intake of NOK 2 billion, equal to ■ EBITDA margin1 increased to 14.4% vs 11.7% a year 1.5x book-to-bill earlier ■ Order bac
Slide 16: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 1Q 2019 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion 16.2 Potential additional revenue from existing agreements Order backlog Order intake 40 Projects backlog Services backlog 37.6 37.0 3.5 36.1 35.1 30 33.3 8.
Slide 17: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and IFRS 16 Leasing ■ Positive long-term offshore, Cashflow ■ New IFRS 16 Leasing standard deepwater outlook effective from January 1, 2019 ■ Capex and R&D ≈ 3% of 2019 ■ Market activity is increasing, but revenue, with flexibility ■ Annual operati
Slide 18: Agenda | 1Q 2019
Agenda | 1Q 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 First-Quarter Results 2019 April 30, 2019 Slide 18
Slide 19: Additional Information
Additional Information © 2019 Aker Solutions First-Quarter Results 2019 April 30, 2019 Slide 19
Slide 20: Special items and IFRS 16 Leasing
Special items and IFRS 16 Leasing NOK million, (Gain) / Loss Special items (EBITDA) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 Onerous leases - 6 - 33 40 - - - 15 15 (0) Restructuring (1) 81 8 (2) 86 7 5 31 (3) 39 3 Non-qualifying hedges 3 4 10 (6) 10 (3)
Slide 21: General
General Basis for Preparation Alternative Performance Special Items Impacting Profit Measures This presentation provides financial highlights for the quarter for Aker Measures NOK million Projects 1Q 2019 1Q 2018 Services Other/eliminations 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Aker Solutions 1Q 2019 1Q 2
Slide 22: General
General Financing Measures Gross Debt and Net Interest-Bearing Debt are measures that show the overall debt situation. Net debt is calculated by netting the value of a company's liabilities and debts with its cash and other similar Alternative financing and equity measures are presented as they are
Slide 23: General
General Order Intake Measures IFRS 16 Leasing 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. Background The new IFRS 16 Leasing standard is effective from January 1,
Slide 24: Income Statement
Income Statement NOK million Income statement consolidated 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 Revenue 5,173 5,425 5,419 6,444 22,461 5,483 6,254 6,541 6,954 25,232 7,256 Operating expenses (4,817) (5,120) (5,017) (5,986) (20,941) (5,057) (5,815) (
Slide 25: Balance Sheet
Balance Sheet NOK million Assets 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Property, plant and equipment 3,721 3,564 3,341 3,316 3,077 2,977 2,905 3,044 2,945 Right-of-use assets - - - - - - - - 4,184 Intangible assets 6,280 6,525 6,344 6,447 6,343 6,290 6,204 6,349 6,4
Slide 26: Cashflow
Cashflow NOK million Cashflow 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 EBITDA continuing operations 355 305 401 458 1,519 425 439 463 483 1,810 634 Change in cashflow from operating activities (257) (762) (615) 702 (932) 107 (121) (506) (370) (890) (937
Slide 27: Split Per Segment
Split Per Segment NOK million Revenue 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 Projects 4,066 4,232 4,184 5,179 17,660 4,239 4,862 5,211 5,608 19,920 5,952 Services 1,068 1,156 1,165 1,170 4,560 1,159 1,337 1,277 1,324 5,096 1,299 Other 41 43 75 105 264
Slide 28: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 Projects (810) (239) 151 (712) (1,350) (1,540) (1,067) (1,141) (262) Services 640 603 595 511 550 646 633 693 908 Other (803) (818) (731) (643) (622) (521) (591) (306) (398) NCOA (974) (454) 15
Slide 29: Split Per Segment – Excluding special items
Split Per Segment – Excluding special items NOK million EBITDA (excl. special items) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 Projects 269 295 323 405 1,292 322 328 373 348 1,371 478 Services 152 147 157 151 607 135 173 190 194 692 187 Other (59) (42) (
Slide 30: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 Subsea 2,182 1,883 1,801 2,471 8,336 1,956 2,084 2,079 2,042 8,162 2,439 Field Design 1,887 2,353 2,386 2,776 9,402 2,284 2,810 3,170 3,551 11,814 3,512 Elim
Slide 31: © 2019 Aker Solutions
© 2019 Aker Solutions
Slide 32: 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