Slide 1: Third-Quarter Results 2014
Preferred partner 3Q Third-Quarter Results 2014 Fornebu, November 7, 2014 Luis Araujo and Svein Oskar Stoknes Public © 2014 Aker Solutions Slide 1 November 7, 2014 Third-Quarter Results 2014 Preferred partner
Slide 2: Agenda | 3Q 2014
Agenda | 3Q 2014 Introduction Luis Araujo Chief Executive Officer Financials Svein Oskar Stoknes Chief Financial Officer Q&A session Luis Araujo Svein Oskar Stoknes Q&A Public © 2014 Aker Solutions Slide 2 November 7, 2014 Third-Quarter Results 2014 Preferred partner
Slide 3: 3Q Headlines
3Q Headlines Strong topline growth Major engineering and subsea projects progress as planned MMO capacity adjusted to counter slowdown in Norway Healthy order backlog provides good visibility Ceaseless focus on operational and financial performance Successful demerger and listing of company on Oslo
Slide 4: Key Figures
Key Figures Revenue and EBIT Order intake and backlog NOK billion NOK billion Revenue EBIT Intake Backlog 10 0.6 25 60 8 20 8.3 0.4 40 49 6 15 0.5 4 10 0.2 20 2 5 3.6 0 0.0 0 0 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 3Q 4Q 1Q 2Q 3Q 2013 2014 2013 2014 2013 2014 2013 2014 Public © 2014 Aker Solu
Slide 5: Subsea Segment
Subsea Segment Revenue Profitability NOK million EBIT margin (percent) 3Q 2014 5,049 3Q 3Q 2014 2014 7.9 % 3Q 2013 3,700 3Q 3Q 2013 2013 8.5 % Subsea Subsea 4,467 7.7 % 3,212 9.2 % Umbilicals Umbilicals 585 9.9 % 3Q’14 3Q’14 488 3Q’13 4.3 % 3Q’13 Public © 2014 Aker Solutions Slide 5 November 7, 2014
Slide 6: Field Design Segment
Field Design Segment Revenue Profitability NOK million EBIT margin (percent) 3Q 2014 3,212 3Q 2014 4.5% 3Q 2013 2,935 3Q 2013 6.3% Engineering Engineering 851 10.6% 689 7.3% Maintenance, Modifications and Operations Maintenance, Modifications and Operations 2,403 2.2% 3Q’14 3Q’14 2,296 5.9% 3Q’13 3Q
Slide 7: Focus on Operational Excellence, Cost Control
Focus on Operational Excellence, Cost Control Intensified efforts to reduce costs Deeper synergies pursued throughout business Reorganized operational functions to avoid duplication and better utilize expertise Continued major push to enhance quality in operations Public © 2014 Aker Solutions Slide
Slide 8: Outlook
Outlook Healthy tendering in main markets Promising offshore project pipeline, though risk of delays Sub-Saharan African and Brazilian deepwater growth to provide significant opportunities New discoveries in Atlantic Canada, opening of Mexico offer opportunities Tight E&P capital discipline seen glo
Slide 9: Agenda | 3Q 2014
Agenda | 3Q 2014 Introduction Luis Araujo Chief Executive Officer Financials Svein Oskar Stoknes Chief Financial Officer Q&A session Luis Araujo Svein Oskar Stoknes Q&A Public © 2014 Aker Solutions Slide 9 November 7, 2014 Third-Quarter Results 2014 Preferred partner
Slide 10: 3Q 2014 | Consolidated Income Statement
3Q 2014 | Consolidated Income Statement 3Q 2014 revenue growth of 21.5 % year-on-year One-off costs totalling NOK 43 million linked to the demerger taken in 3Q 2014 Higher tax rate due to one-off demerger effects and changing regional mix of profit (NOK million) 3Q 14 3Q 13 YTD 2014 YTD 2013 2013 Op
Slide 11: 3Q 2014 | Consolidated Cashflow, Capex and NCOA
3Q 2014 | Consolidated Cashflow, Capex and NCOA Cashflow from operations negative NOK 351 million in the quarter due mainly to NCOA outflow Project progress drove expected NCOA move but balance sheet values offset by hedging derivative effects (NCOA at end 3Q 2014 totalled NOK 404 million, versus NO
Slide 12: 3Q 2014 | Financial Position
3Q 2014 | Financial Position As expected post demerger net debt rose to NOK 2.5 billion Gross debt of NOK 3.9 billion Leverage and gearing in line with policy at 1 x net debt / EBITDA and 46.7 % net debt / equity Robust total liquidity buffer of NOK 5.1 billion; new loan agreements established (post
Slide 13: Subsea
Subsea Strong revenue growth to NOK 4,467 million, up With no major subsea projects awarded in the 39.1% vs. 3Q 2013 quarter, order intake in 3Q fell to NOK 1.7 billion from NOK 2.5 billion a year earlier Main driver was work on major projects such as Åsgard in Norway, Kaombo in Angola and Moho Orde
Slide 14: Umbilicals
Umbilicals Revenues up strongly to NOK 585 million, Tender activity was high in the third quarter, but growth of 19.9% vs. last year no significant orders were won due to project delays Main driver was increased activity at the U.S. plant in Mobile, Alabama Order backlog fell 15.5 % year-on-year to
Slide 15: Engineering
Engineering Strong revenue growth of 23.5% vs. last year to Tendering activity remained high and order intake reach NOK 851 million rose 19.8 percent year-on-year to NOK 853 million Main driver was good progress made on key projects such as Johan Sverdrup and Gina Krog Order backlog was flat sequent
Slide 16: MMO
MMO Revenue growth of 4.7 % vs. last year to NOK 2,403 Order intake in 3Q was NOK 1,056 million, down billion 13.4% year-on-year Sharp activity slowdown on the NCS, significantly Order backlog rose 3 % year on year to NOK 12,040 impacting profits million EBIT margins showed a slight improvement on 2
Slide 17: Good Visibility From Strong Order Backlog
Good Visibility From Strong Order Backlog 3Q 14 Order backlog by execution date Order backlog and intake evolution NOK billion NOK billion 53.9 Graph 49.0 60 42.5 20 revised from 41.1 40.9 39.6 39.4 3Q earnings 50 15 release 40 23.6 21.4 10 20.9 30 20 9.2 6.3 5.9 5 10.1 5.2 3.6 7.4 5.8 4.8 10 0 0 20
Slide 18: Financial Guidance
Financial Guidance Revenue Balance sheet Positive long-term outlook for offshore Maintenance capex / R&D 3% of and deepwater remains in place, but revenues near-term uncertainty on award timing Current major capex expansion plans to be We see good long-term growth finished by 2015 opportunities in o
Slide 19: Agenda | 3Q 2014
Agenda | 3Q 2014 Introduction Luis Araujo Chief Executive Officer Financials Svein Oskar Stoknes Chief Financial Officer Q&A session Luis Araujo Svein Oskar Stoknes Q&A Public © 2014 Aker Solutions Slide 19 November 7, 2014 Third-Quarter Results 2014 Preferred partner
Slide 20: Public © 2014 Aker Solutions Slide 20 November 7, 2014
Public © 2014 Aker Solutions Slide 20 November 7, 2014 Third-Quarter Results 2014 Preferred partner
Slide 21: 3Q Additional information
Preferred partner 3Q Additional information Public © 2014 Aker Solutions Slide 21 November 7, 2014 Third-Quarter Results 2014 Preferred partner
Slide 22: Consolidated income statement
Consolidated income statement NOK million Income statement consolidated 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 Revenues 7,329 7,442 6,806 7,548 29,125 7,437 8,046 8,271 EBITDA 488 439 567 668 2,162 623 587 617 Of which related to hedging (7) (29) (5) (35) (76) 28 (25) 2 Depr
Slide 23: Consolidated assets & debt and equity
Consolidated assets & debt and equity NOK million Assets 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Property, plant and equipment 2,539 2,692 2,814 3,072 3,067 3,181 3,203 Intangible assets 5,057 5,253 5,131 5,524 5,584 5,731 5,810 Financial assets (non-current) 11 11 13 17 18 23 17 IB
Slide 24: Consolidated cash flow
Consolidated cash flow NOK million Cash flow 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 EBITDA continuing operations 488 439 567 668 2,162 623 587 617 Change in cash flow from operating activities (2,066) 1,117 (11) 1,457 497 (1,510) 1,239 (968) Net cash flow from operating acti
Slide 25: Split per segment
Split per segment NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 Subsea 3,795 4,110 3,700 4,164 15,769 4,060 4,660 5,049 Field Design 3,001 3,182 2,935 3,384 12,502 3,403 3,407 3,212 Other 627 245 226 85 1,183 21 31 63 Eliminations (94) (95) (55) (85) (329) (47)
Slide 26: Split per segment
Split per segment NCOA 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 Subsea 2,506 1,340 1,410 613 1,602 336 322 Field Design 96 324 235 (360) 217 184 482 Other 194 193 123 14 (213) (164) (400) NCOA 2,796 1,857 1,768 267 1,606 356 404 Net capital employed 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q
Slide 27: Split per business area
Split per business area NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 Subsea 3,401 3,591 3,212 3,532 13,736 3,454 4,052 4,467 Umbilicals 397 519 488 632 2,036 607 608 585 Eliminations (3) - - - (3) (1) - (3) Subsea 3,795 4,110 3,700 4,164 15,769 4,060 4,660 5,0
Slide 28: Split per business area
Split per business area Order intake 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 Subsea 17,785 3,695 2,465 1,703 25,648 3,711 18,173 1,706 Umbilicals 1,070 107 902 966 3,045 713 292 88 Eliminations - (1) 1 (2) (2) (1) (2) (3) Subsea 18,855 3,801 3,368 2,667 28,691 4,423 18,463 1,
Slide 29: 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