Slide 1: 3Q 2017
3Q 2017 Fornebu, October 20, 2017 Luis Araujo and Svein Stoknes © 2017 Aker Solutions
Slide 2: Agenda | 3Q 2017
Agenda | 3Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2017 Aker Solutions Third-Quarter Results 2017 October 20, 2017 Slide 2
Slide 3: Main Developments
Main Developments Moho Nord project in Congo Brazzaville Vectus subsea electronics module ■ Major projects progressing as ■ Market still challenging, but ■ Steady tendering activity planned signs of recovery ■ Optimizing global ■ Global improvement program ■ Order backlog of NOK 27.2 manufacturing s
Slide 4: Key Figures | 3Q 2017
Key Figures | 3Q 2017 Revenue EBITDA Order Intake Order Backlog 5.4 NOK BILLION 401 NOK MILLION 2.6 NOK BILLION 27.2 NOK BILLION Reported Excl. special items 7 600 5 35 6 500 30 4 5 25 400 3 4 20 300 3 15 2 200 2 10 1 1 100 5 0 0 0 0 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 3Q 16
Slide 5: New Orders
New Orders Photo: Shell Photo: Statoil Framework contract from Shell for Front-end engineering and design Order from Statoil for four subsea brownfield modifications services order from Statoil for Troll field in trees for Visund and Fram Øst and maintenance support Norway fields offshore Norway Pho
Slide 6: Strong Demand for Front End Engineering
Strong Demand for Front End Engineering ■ 13 study awards won in 3Q, giving record of 84 studies in first nine Number of Study Awards (YTD) months ■ Three quarters of awards year-to-date 84 84 are for projects offshore Norway where activity is picking up 63 ■ One third were won with subsea alliance
Slide 7: #thejourney
#thejourney Global improvement program targeting New target for minimum minimum 30 percent improvement 20 percent additional in cost-efficiency by end of 2017 improvement by end of 2021 30% 20% 2015 2017 2021 © 2017 Aker Solutions
Slide 8: Optimizing Global Manufacturing Setup
Optimizing Global Manufacturing Setup Technology center with manufacturing Volume manufacturing center Tranby, Norway Moss, Norway Specialized manufacturing for local market Aberdeen, UK Reading, UK Mobile, United States Port Klang, Malaysia Curitiba, Brazil © 2017 Aker Solutions Third-Quarter Resul
Slide 9: Outlook
Outlook ■ Market outlook for oil services remains challenging, though signs of recovery ■ Industry improvement measures are lowering break-even costs and spurring project sanctions ■ Steady tendering in main markets, where key projects are seen sanctioned over next six months ■ Well placed in key re
Slide 10: Agenda | 3Q 2017
Agenda | 3Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2017 Aker Solutions Third-Quarter Results 2017 October 20, 2017 Slide 10
Slide 11: 3Q 2017 | Income Statement
3Q 2017 | Income Statement (NOK million) 3Q 2017 3Q 2016 YTD 2017 YTD 2016 2016 ■ Revenue for 3Q 2017 down Revenue 5,419 5,987 16,017 19,419 25,557 9% vs last year EBITDA 401 477 1,062 1,549 1,929 ■ Reflecting lower activity EBITDA margin 7.4% 8.0% 6.6% 8.0% 7.5% levels, especially for EBITDA ex. sp
Slide 12: 3Q 2017 | Cash flow and Financial Position
3Q 2017 | Cash flow and Financial Position ■ Cash flow from operations minus NOK 214 million Debt Maturity Profile1 NOK million ■ Working capital NOK 15 million Drawn debt 6,000 ■ Net debt NOK 2,028 million and leverage 1.4x Undrawn credit facilities 3,100 4,000 ■ Gross debt of NOK 3.8 billion 2,000
Slide 13: Projects
Projects ■ Major projects progress as planned on strong ■ EBIT margin1 of 4.9% vs 4.9% a year earlier execution ■ Order intake of NOK 1.8 billion, equal to 0.4x book- ■ Revenue fell 16% to NOK 4.2 billion vs year earlier to-bill ■ EBITDA margin1 of 7.7% vs 7.9% a year earlier ■ Order backlog of NOK
Slide 14: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Impacted by lower activity levels ■ Brownfield activity continues to improve ■ Revenue slid 37% to NOK 1.8 billion vs year earlier ■ Revenue rose 12% to NOK 2.4 billion vs year earlier ■ Order intake of NOK 0.5 billion, equal to 0.3x book- ■ Order intake o
Slide 15: Services
Services ■ Sound activity level within subsea services and ■ EBIT margin1 of 10.2% vs 8% year earlier production asset services ■ Order intake of NOK 0.7 billion, equal to 0.6x book- ■ Revenue rose 14% to NOK 1.2 billion vs year earlier to-bill ■ EBITDA margin1 of 13.5% vs 11.4% a year earlier ■ Ord
Slide 16: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 3Q 2017 Order Backlog by Execution Date NOK million Order Backlog and Intake Evolution NOK million Potential additional revenue from existing agreements Order backlog Order intake 40 Projects backlog 38.5 35 35.0 Services backlog 30 31.7 31.2 30.7 30.7 25 27
Slide 17: Financial Guidance
Financial Guidance Revenue Margins Balance Sheet and ■ Positive long-term offshore, ■ Softer underlying EBITDA Cash flow deepwater outlook margin in Projects year-on-year ■ Capex and R&D ≈ 2% of ■ Steady tendering, continued ■ Slightly improved underlying revenue uncertainty on timing of awards EBIT
Slide 18: Agenda | 3Q 2017
Agenda | 3Q 2017 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2017 Aker Solutions Third-Quarter Results 2017 October 20, 2017 Slide 18
Slide 19: Additional Information
Additional Information © 2017 Aker Solutions Third-Quarter Results 2017 October 20, 2017 Slide 19
Slide 20: Special Items
Special Items NOK million Special items (EBITDA) 1Q 2015 2Q 2015 3Q 2015 4Q 2015 YTD 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 YTD 2016 1Q 2017 2Q 2017 3Q 2017 Onerous leases 52 58 40 114 265 - 4 39 39 82 - 6 - Restructuring1 0 2 41 373 416 15 19 0 130 163 (1) 81 8 Non-qualifying hedges 18 36 25 15 94 (4
Slide 21: General
General Basis for Preparation This presentation provides financial highlights for Alternative Performance Measures the quarter for Aker Solutions, a Norwegian limited Aker Solutions discloses alternative performance measures in addition to those normally required by IFRS, as such performance measure
Slide 22: General
General Order Intake Measures Financing Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, Alternative financing and equity measures are presented as they are indicators of the company’s ability as they are indicators of the company’s reve
Slide 23: Income Statement
Income Statement NOK million Income statement consolidated 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 Revenue 7,484 7,864 31,896 6,463 6,969 5,987 6,138 25,557 5,173 5,425 5,419 Operating expenses (6,963) (7,682) (30,055) (5,955) (6,405) (5,509) (5,759) (
Slide 24: Balance Sheet
Balance Sheet NOK million Assets 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 Property, plant and equipment 3,792 3,962 3,882 3,934 3,735 3,808 3,721 3,564 3,341 Intangible assets 6,518 6,539 6,403 6,306 6,305 6,314 6,280 6,525 6,344 Financial assets (non-current) 17 16 16
Slide 25: Cash flow
Cash flow NOK million Cash flow 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 EBITDA continuing operations 521 182 1,841 508 563 477 380 1,929 355 305 401 Change in cash flow from operating activities 311 1,414 93 (836) (1,094) (769) 1,081 (1,617) (257) (762
Slide 26: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 Projects 5,988 6,335 25,690 5,051 5,474 5,003 5,100 20,627 4,066 4,232 4,184 Services 1,456 1,551 6,281 1,476 1,449 1,019 1,057 5,001 1,068 1,156 1,165 Other 104 79 273 25 48
Slide 27: Split Per Segment
Split Per Segment NOK million NCOA 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 Projects (1,098) (2,477) (1,805) (1,309) (223) (1,297) (810) (239) 151 Services 1,471 1,145 1,143 1,493 824 921 640 603 595 Other (58) (275) (271) (283) (185) (528) (803) (818) (731) NCOA 315 (
Slide 28: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 Projects 361 524 1,749 386 436 393 387 1,602 269 295 323 Services 283 200 988 158 176 116 168 618 152 147 157 Other (13) (29) (99) (
Slide 29: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 Subsea 3,524 3,899 15,278 2,992 3,360 2,873 2,693 11,917 2,182 1,883 1,801 Field Design 2,504 2,506 10,610 2,075 2,130 2,133 2,414 8,751 1,887 2,353 2,386 El
Slide 30: © 2017 Aker Solutions
© 2017 Aker Solutions
Slide 31: 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