Slide 1: 4Q 2020
4Q 2020 Fornebu, February 15, 2021 Kjetel Digre and Idar Eikrem #PowerTheChange 2021 © Aker Solutions
Slide 2: Highlights
Highlights Operations ■ COVID-19 negatively impacted operations through most of 2020 ■ The pandemic will continue to influence our lives and ongoing projects in 2021 Transformation ■ Merger completed successfully ■ Creating a leading supplier company – well positioned for new energy markets 2021 © A
Slide 3: Key Figures | 4Q 2020
Key Figures | 4Q 2020 Revenue Excluding special items EBITDA Excluding special items Order Intake Order Backlog 6.8 NOK BILLION 121 NOK MILLION 6.8 NOK BILLION 38.0 NOK BILLION 12 600 12 40 35 10 500 10 30 8 400 8 25 6 300 6 20 15 4 200 4 10 2 100 2 5 0 0 0 0 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 4Q 19 1Q 2
Slide 4: Key Figures | 2020
Key Figures | 2020 Revenue Excluding special items EBITDA Excluding special items Order Intake Order Backlog 28.5 NOK BILLION 1.2 NOK BILLION 34.2 NOK BILLION 38.0 NOK BILLION 45 3 40 40 40 35 35 2.5 35 30 30 30 2 25 25 25 1.5 20 20 20 15 15 15 1 10 10 10 0.5 5 5 5 0 0 0 0 2019 2020 2019 2020 2019 2
Slide 5: New Awards Securing Landmark Carbon Capture Contracts in 4Q 2020
New Awards Securing Landmark Carbon Capture Contracts in 4Q 2020 Renewables and Electrification, Maintenance Subsea Field Development and Modifications Kristin South Subsea Production System for Northern Lights CCUS Peregrino Lavrans and Kristin Q satellite EPC of onshore plant 4-year maintenance an
Slide 6: Financial Performance
Financial Performance Idar Eikrem, CFO 2021 © Aker Solutions
Slide 7: Income Statement | 4Q 2020
Income Statement | 4Q 2020 NOK million 4Q 2020 4Q 2019 ■ Revenue1 of NOK 6.8 billion, down from NOK 10 billion in the Revenue 1 6,875 10,049 previous year Revenue ex. special items 6,839 10,049 ■ Driven by lower activity across segments, in particular EMM from record EBITDA 83 508 EBITDA margin 1.2%
Slide 8: Solid Financial Position
Solid Financial Position ■ Working capital1 at minus NOK 280 million Debt Maturity Profile2 NOK billion ■ Cashflow from operations at NOK 529 million Drawn debt Undrawn revolving credit facility ■ Cashflow from investments at NOK 31 million 5.0 5 ■ Capex reduced about 50% from 2019, to NOK 628 4 mil
Slide 9: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 2.9 NOK BILLION 259 NOK BILLION ■ 2020 revenue of NOK 10.8 billion and EBITDA 4 margin1 of 5.1% 300 9% 9% 8% 3 200 ■ 4Q revenue down year-on-year to NOK 2.9 billion 100 ■ Finalization of large EPC projects during 2020 2 1% 0 ■ Recently awar
Slide 10: Electrification, Maintenance and Modifications
Electrification, Maintenance and Modifications Revenue EBITDA and Margin1 2.1 NOK BILLION -124 NOK BILLION ■ Full-year revenue of NOK 8.7 billion and 4 EBITDA margin1 of 1.8% 600 12% 3 400 ■ 4Q revenue down year-on-year to NOK 2.1 billion 5% 4% 4% ■ Driven by finalization of larger modification and
Slide 11: Subsea
Subsea Revenue EBITDA and Margin1 ■ Full-year revenue of NOK 9.5 billion and 1.9 NOK BILLION 16.0 NOK MILLION EBITDA margin1 of 7.9% 4 400 12% 12% ■ 4Q revenue down year-on-year to NOK 1.9 billion 3 300 ■ Driven by projects nearing completion 7% ■ Newly awarded work in early phase of execution 2 200
Slide 12: Healthy Order Backlog and Visibility
Healthy Order Backlog and Visibility Order Backlog – By Execution Year NOK billion Order Backlog and Intake – Development NOK billion Order backlog Order intake Subsea 20 18.7 Renewables and Field Development 40 38.1 38.0 5.7 33.3 35.6 EMM1 33.1 15 11.1 30 10 6.2 3.2 20 3.3 5.2 10.3 9.1 5 1.3 3.1 10
Slide 13: Building Financial Robustness
Building Financial Robustness Priorities ■ The board of directors deems it prudent to Build sufficient build financial robustness to support Aker Solutions’ objectives for strategic Financial robustness development and delivering shareholder value ■ Focus on continued safe operations, cost improveme
Slide 14: Summary and Outlook
Summary and Outlook Summary Outlook ■ 2020 was an operationally very challenging year due to the ■ 2021 overall revenue at this stage seen at restrictions imposed to manage the unprecedented impacts of somewhat below the 2020 level the COVID-19 pandemic ■ 2021 overall underlying EBITDA at this stage
Slide 15: Strategy and Market Opportunities
Strategy and Market Opportunities Kjetel Digre, CEO 2021 © Aker Solutions
Slide 16: Transition to Renewable Energy
Transition to Renewable Energy Renewables and Low-Carbon Solutions to Become our Biggest Business in 2030 2020 2021-2025 2026 Building a strong Reposition and Sustainable foundation transform business for the future 2021 © Aker Solutions
Slide 17: Integrated Offering
Integrated Offering Across the Customers’ Value Chain Aker Solutions’ role and expertise Front End E P C I EMM Technology provider E.g. hydrogen technology, carbon capture and storage, hull concepts, offshore wind solutions 2021 © Aker Solutions
Slide 18: Ongoing Projects Within Energy Transition
Ongoing Projects Within Energy Transition Hywind Tampen Northern Lights CO2 Storage Photo: Equinor Arctic Fish Farming Brevik Carbon Capture Photo: Aker Carbon Capture 2021 © Aker Solutions Fourth-Quarter Results 2020 February 15, 2021 Slide 18
Slide 19: High Demand for Early-Phase Capabilities
High Demand for Early-Phase Capabilities ■ 33 front-end contracts awarded in 4Q, resulting in a total of 159 2020 2019 won in 2020 ■ 23% related to Energy 159 159 Transition Total front-end studies Typical Ongoing Studies ■ Oil and gas 23% 11% ■ Electrification Energy Transition ■ Offshore wind shar
Slide 20: Tendering for NOK 76 Billion
Tendering for NOK 76 Billion and about 1/3 related to Energy Transition Renewables and Electrification, Maintenance Subsea Field Development and Modifications Complete subsea production Renewable energy solutions for Electrification of offshore and onshore systems and life cycle services offsh
Slide 21: Increased Sanctioning on NCS Driven by Tax Incentives
Increased Sanctioning on NCS Driven by Tax Incentives Orange = won by Aker Solutions Blue = won by others Expected NCS prospects and already awarded projects Alke Garantiana Linnorm Skarv electrification Askeladd Grane D, F Melkøya electrification Tommeliten Alpha Breidablikk Gre
Slide 22: Transition Journey Underway
Transition Journey Underway ■ Ambition to grow revenue base Revenue NOK billion Oil & Gas Renewables & Low Carbon by about 10% annually towards 2025 >43 ■ NOK 38 billion backlog, and 38 NOK 76 billion ongoing tenders 34 per 4Q 2020 29 ■ Strong position to transition into renewables and low-carbon so
Slide 23: Outlook
Outlook Short-Term Medium-Term Building a Stronger Foundation Repositioning and Transforming ■ Health and safety ■ Leverage NCS tax relief projects ■ Business continuity through the pandemic ■ Growth in renewables and low-carbon ■ High tendering activity oil and gas ■ Improved margins, cost position
Slide 24: Q&A
Q&A Kjetel Digre and Idar Eikrem 2021 © Aker Solutions
Slide 25: Additional Information
Additional Information 2021 © Aker Solutions Fourth-Quarter Results 2020 February 15, 2021 Slide 25
Slide 26: Income Statement | 2020
Income Statement | 2020 NOK million 2020 2019 ■ Full-year revenue1 of NOK 28.5 billion, down 25% from Revenue Revenue ex. special items 29,396 28,548 38,163 38,161 NOK 38.2 billion a year earlier ■ Record activity in the EMM segment in 2019 EBITDA 1,539 2,711 ■ Finalization of several projects durin
Slide 27: Powering the Change of Energy Transition
Powering the Change of Energy Transition 4Q 2020 Order Intake NOK billion Tendering NOK billion >25% >30% 6.9 Energy Transition order intake Other order intake 76 Energy Transition tenders Other ongoing tenders NOK Billion NOK Billion ■ More than 25% of fourth-quarter order intake was ■ About NOK 25
Slide 28: NOK 76 Billion of Tendering
23 NOK BILLION 20 NOK BILLION 6 NOK BILLION NOK 76 Billion of Tendering 6 NOK BILLION 9 NOK BILLION 12 NOK BILLION Tendering by Reporting Segment NOK Billion Renewables and Field Development 30 Subsea 29 EMM1 17 (*Electrification, Maintenance and Modifications) 2021 © Aker Solutions
Slide 29: Financial Performance and Value Creation
Financial Performance and Value Creation Cost Reduction and Synergies Capex NOK Billion Capital Structure NOK Billion NOK Billion (excl. dividend, and IFRS 16) 1.2 -30% Cash generation, ambition 3.0 Cash generation, target At 4Q 2020 3.2 3.0 0.6 -30% 0.4 0.4 0.5 2.7 Gross debt Cash & cash Net cash T
Slide 30: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Field Electrification, EBITDA and EBIT terms are presented as they are used by Development Maintenance & Subsea Other/eliminations Aker Solutions Aker Solutions NOK million Modifications financial analysts and investors. Special items are
Slide 31: Alternative Performance Measures
Alternative Performance Measures 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 Alternative financing and equity measures are presented as they are i
Slide 32: Alternative Performance Measures
Alternative Performance Measures 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 agreed customer contracts in the peri
Slide 33: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 Restructuring 3 10 12 46 70 155 117 183 61 516 Non-qualifying hedges (2) (4) 5 1 0 10 (8) (1) (5) (4) Gain on dividend distribution of CCUS and AOW shares -
Slide 34: Income Statement
Income Statement NOK million Income statement consolidated 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 Revenue 9,226 9,251 9,636 10,049 38,163 8,601 6,721 7,198 6,875 29,396 Operating expenses (8,467) (8,510) (8,933) (9,542) (35,452) (8,604) (6,340) (6,122) (6,792
Slide 35: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Property, plant and equipment 3,934 3,947 4,160 4,229 4,394 4,051 3,912 3,567 Intangible assets 6,419 6,317 6,397 6,450 6,325 6,155 6,002 5,825 Right-of-use assets 4,422 4,077 3,868 3,702 3,779
Slide 36: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Total equity attributable to the parent 10,724 10,325 10,729 10,526 10,675 9,879 9,141 7,870 Non-controlling interests 107 123 110 97 78 78 58 38 Total equity 10,
Slide 37: Cashflow
Cashflow NOK million Cashflow 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 EBITDA 759 742 703 508 2,711 (3) 382 1,077 83 1,539 Change in cashflow from operating activities (1,196) (505) (1,017) 368 (2,351) (640) (554) (289) 446 (1,038) Net cashflow from operating a
Slide 38: Split Per Segment
Split Per Segment NOK million Revenue 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 Renewables & Field Development 3,370 2,972 3,552 3,872 13,765 3,110 2,303 2,538 2,879 10,829 Electrification, Maintenance & Modifications 3,094 3,502 3,528 3,354 13,477 2,693 2,111 1
Slide 39: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 Renewables & Field Development (759) (655) (295) (347) (151) 128 23 (945) Electrification, Maintenance & Modifications (153) 2 244 (215) 119 75 (278) (235) Subsea 416 305 735 616 1,236 794 641 676 Othe
Slide 40: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 Renewables & Field Development 243 311 165 34 753 (107) 204 193 259 549 Electrification, Maintenance & Modifications 258 193 186 414 1,
Slide 41: 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
Slide 42: 2021 © Aker Solutions
2021 © Aker Solutions