Akastor Asa · OSL:AKAST
Akastor Asa — Investor Day (March 2015)
27 slides from Akastor Asa's investor day presentation, Mar 17, 2015
Slide 1: Creating value through active ownership
Creating value through active ownership Frank O. Reite and Leif Borge London | 17 March 2015 © 2015 Akastor
Slide 2: Agenda
Agenda THIS IS AKASTOR Frank O. Reite CEO FINANCIALS Leif Borge CFO © 2015 Akastor March 17, 2015 Slide 2
Slide 3: Akastor is set up to create value through active ownership
Akastor is set up to create value through active ownership Oilfield services investment Our mandate company with a flexible mandate for long-term value creation Portfolio companies with Our portfolio multiple levers for growth and improvements Value creation through active ownership combining a rang
Slide 4: Akastor - the investment portfolio
Akastor - the investment portfolio 8 13.0 7,600 21.4 Portfolio Billion NOK Employees Billion NOK companies net capital employed* worldwide revenue* *2014 numbers © 2015 Akastor March 17, 2015 Slide 4
Slide 5: Our investments – eight stand-alone companies
Our investments – eight stand-alone companies MHWIRTH KOP SURFACE PRODUCTS Global provider of drilling systems, Provider of surface wellheads and products and services trees in APAC and MENA AKOFS OFFSHORE FIRST GEO Well construction and intervention Petroleum sub-surface consultancy services to the
Slide 6: The Akastor portfolio of investments
The Akastor portfolio of investments NET CAPITAL EMPLOYED REVENUE 13 Billion NOK (2014) 21.4 Billion NOK (2014) Fjords Processing Frontica Frontica MHWirth KOP MHWirth Real Estate and other Fjords Processing AKOFS AKOFS KOP Real Estate and other © 2015 Akastor March 17, 2015 Slide 6
Slide 7: Systematic value creation “the Akastor way”
Systematic value creation “the Akastor way” EXECUTE, ADJUST 3 AND FOLLOW-UP DEFINE VALUE 2 CREATION PLAN • Close interaction with management 1 ASSESS SITUATION • Frequent reporting • Corrective actions • Decide on time horizon and • Focus on speed in execution • Dialogue with stakeholders actions an
Slide 8: A set of tools and reports developed to support execution and measurability
Corporate governance established: A set of tools and reports developed to support execution and measurability • Tool-box of reporting standards giving… …a continuous detailed understanding of the development of the investment …a defined system of authority between management and the owner / the Boar
Slide 9: Experienced teams with track record of execution
Experienced teams with track record of execution 23 PROFESSIONALS: INVESTMENT TEAM CFO & SUPPORT FUNCTIONS A TRACK RECORD OF VALUE CREATION 8 CEOS, HEADING EACH PORTFOLIO COMPANY CAPABLE MANAGEMENT WITH INDUSTRIAL EXPERIENCE © 2015 Akastor March 17, 2015 Slide 9
Slide 10: MHWirth
Real Estate MHWirth 941 10,681 4,237 Million NOK Million NOK Employees EBITDA in 2014 Revenue in 2014 MHWirth is a leading global provider of first-class drilling solutions, equipment and services. One of only two providers of complete topside packages and riser systems for floaters. © 2015 Akastor
Slide 11: Installed base supports long term life cycle business
Real Estate Installed base supports long term life cycle business CURRENT INSTALLED BASE BY REGION PER END 2014 78 in total 30 13 Europe US 9 Asia/ MENA 8 18 Africa Brazil INSTALLED BASE DEVELOPMENT INSTALLED BASE BY AGE AND TYPE Number of drilling packages By type By age JU +8% >20 95 88 0-5 74 78
Slide 12: Substantial oversupply in floater market
Real Estate Substantial oversupply in floater market ACTIVE SUPPLY AND REGIONAL DEMAND RIG UTILIZATION Floaters No. of No. of rigs rigs Active Supply FLOATERS SCRAPPED (2005-2015) • Steep drop in utilization due to oversupply • Currently a total of 394 floaters in service and Floaters on book (278 a
Slide 13: MHWirth: Focusing on the core
Real Estate MHWirth: Focusing on the core NEAR TERM • Very challenging market with a low activity level resulting in capacity costs and pressure on margins • Cost base and capital discipline • Initiated capacity reduction process aiming to reduce 500-750 personnel • Estimated NOK 500-600 million ann
Slide 14: AKOFS Offshore
Real Estate AKOFS Offshore 175 1,542 115 Million NOK Million NOK Employees EBITDA in 2014 Revenue in 2014 AKOFS Offshore is a global provider of vessel based subsea well construction and intervention services to the oil and gas industry. © 2015 Akastor
Slide 15: AKOFS Offshore
Real Estate AKOFS Offshore STRONG PERFORMANCE IN SUBSEA INSTALLATION • Skandi Santos secured 5yr contract (98% utilization in 2014 – currently docking) • Aker Wayfarer secured 5+5yr contract (89% utilization in 2014, 100% YTD2015) (current work extended through July 2015) • Focus on operational exce
Slide 16: Frontica Business Solutions
Real Estate Frontica Business Solutions 315 5,753 1,356 Million NOK Million NOK Employees EBITDA in 2014 Revenue in 2014 Frontica Business Solutions provides cost efficient corporate services that enable companies to become faster and more efficient. © 2015 Akastor March 17, 2015 Slide 16
Slide 17: Frontica Business Solutions
Real Estate Frontica Business Solutions COMPETITIVE POSITION • Manpower, and Service provider to the Oil & Gas industry • Portfolio of 3 000 highly skilled engineering consultants • Managing 30 000 IT users • Global delivery model, local presence ROADMAP FOR VALUE CREATION • Leverage current platfor
Slide 18: Fjords Processing
Real Estate Fjords Processing 52 2,322 617 Million NOK Million NOK Employees EBITDA in 2014 Revenue in 2014 Fjords Processing provides well stream processing technology, systems, and services to the upstream oil and gas industry © 2015 Akastor
Slide 19: Fjords Processing
Real Estate Fjords Processing COMPETITIVE POSITION • Provider of complete processing systems, both onshore and offshore • Comprehensive product portfolio • World leading processing technologies within defined niches ROADMAP FOR VALUE CREATION • Increase profitability through improving and streamlini
Slide 20: KOP Surface Products
Real Estate KOP Surface Products 156 1,119 854 Million NOK Million NOK Employees EBITDA in 2014 Revenue in 2014 KOP Surface Products is a provider of surface-installed wellheads, Xmas trees, valves and actuators for offshore and land-based oil and gas production © 2015 Akastor
Slide 21: KOP Surface Products
Real Estate KOP Surface Products COMPETITIVE POSITION A REMARKABLE GROWTH STORY • Reliable products • Competitive manufacturing capabilities MUSD % +26% 177 180 20 • Strong foothold in APAC 160 149 29 140 17 15 120 111 ROADMAP FOR VALUE CREATION 100 17 89 10 • Expand manufacturing capacity with 80 1
Slide 22: Real Estate and other holdings
Real Estate Real Estate and other holdings FIRST GEO REAL ESTATE Leading provider of operations and Includes a portfolio of 8 real estate wellsite geology services in Norway with assets in Norway activities within geophysical interpretation, geological modelling, petrophysics and reservoir engineeri
Slide 23: Agenda
Agenda THIS IS AKASTOR Frank O. Reite CEO FINANCIALS Leif Borge CFO © 2015 Akastor March 17, 2015 Slide 23
Slide 24: The Akastor portfolio
The Akastor portfolio NET CAPITAL EMPLOYED NOK 13 BILLION PER 4Q 2014 NOK million Fjords Processing 436 Frontica 374 KOP Surface 674 12 995 12 995 Other 60 Real Estate 541 NCOA 2 422 Other 1,127 NIBD 3 617 Fixed assets 1,572 MHWirth Intangible assets 2,163 5,603 NCOA 2,573 Intangible assets 3 336 AK
Slide 25: Capital structure
Capital structure NET INTEREST BEARING DEBT NOK 3.6 BILLION FUNDING PER 4Q 2014 Term loan Revolving AKOFS Brazil NOK million credit Seafarer facility facility facility* Size NOK 2.5 NOK 2.0 USD 125m BRL 129m billion billion Other 1,082 1 075 Maturity September September February December 2017 2019 2
Slide 26: www.akastor.com
www.akastor.com © 2015 Akastor March 17, 2015 Slide 26
Slide 27: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u