Slide 1: 2Q 2017
2Q 2017 Fornebu, July 12, 2017 Luis Araujo and Svein Stoknes © 2017 Aker Solutions
Slide 2: Agenda | 2Q 2017
Agenda | 2Q 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 Second-Quarter and Half-Year Results for 2017 July 12, 2017 Slide 2
Slide 3: Key Developments
Key Developments Umbilicals for Zohr development Gina Krog on stream Photo: Ole Jørgen Bratland/Statoil ■ Major projects progress as ■ Robust order backlog of ■ Acquisition of Reinertsen’s planned NOK 30.7 billion Norway oil and gas business ■ Global improvement program ■ New orders include umbilica
Slide 4: Key Figures | 2Q 2017
Key Figures | 2Q 2017 Revenue EBITDA Order Intake Order Backlog 5.4 NOK BILLION 305 NOK MILLION 3.0 NOK BILLION 30.7 NOK BILLION 7 600 6 40 6 35 500 5 30 5 400 4 25 4 300 3 20 3 15 200 2 2 10 1 100 1 5 0 0 0 0 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17
Slide 5: New Orders
New Orders ENI Aker BP Aker BP Photo: Statoil Contract for three umbilicals for Engineering and procurement Order for two subsea trees for Mozambique’s Coral South project services framework agreement for Kameleon and Storklakken as many as 10 years discoveries Statoil Multiple Clients Statoil Subse
Slide 6: #thejourney
#thejourney Global improvement program targeting Achieved more than 80 percent minimum 30 percent improvement of cost-efficiency target in cost-efficiency across company 2Q 2017 NOK © 2017 Aker Solutions 9,000,000,000 Second-Quarter and Half-Year Results for 2017
Slide 7: Collaborating to Drive Industry Improvements
Collaborating to Drive Industry Improvements Alliance with Aker BP and Subsea 7 ■ Operator and suppliers work as integrated team, reusing solutions and best practices ■ Completed tie-in of two subsea wells at Volund field 20 percent below targeted budget and nine months faster than at comparable pro
Slide 8: Outlook
Outlook ■ Market outlook for oil services remains challenging amid project postponements, volatile oil price ■ Some signs of recovery, as industry improvement measures having an effect ■ Lower break-even costs likely to spur more project sanctions this year ■ Healthy tendering in main markets ■ Well
Slide 9: Agenda | 2Q 2017
Agenda | 2Q 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 Second-Quarter and Half-Year Results for 2017 July 12, 2017 Slide 9
Slide 10: 2Q 2017 | Income Statement
2Q 2017 | Income Statement NOK million 2Q 2017 2Q 2016 1H 2017 1H 2016 2016 ■ Revenue for 2Q 2017 down Revenue 5,425 6,969 10,598 13,432 25,557 22% vs last year EBITDA 305 563 660 1,072 1,929 ■ Reflecting lower activity levels, EBITDA margin 5.6% 8.1% 6.2% 8.0% 7.5% especially for subsea projects EB
Slide 11: 2Q 2017 | Cash flow and Financial Position
2Q 2017 | Cash flow and Financial Position ■ Cash flow from operations minus NOK 457 million Debt Maturity Profile1 NOK million ■ Working capital minus NOK 454 million Drawn debt 6,000 ■ Net debt NOK 1,686 million and leverage 1.2x Undrawn credit facilities 4,000 3,700 ■ Gross debt at NOK 3.2 billio
Slide 12: Projects
Projects ■ Good progress on major projects, according to plan ■ EBIT margin1 of 3.8%, down from 5.2% a year earlier ■ Revenue down 23% vs last year to NOK 4.2 billion ■ Order intake of NOK 2.6 billion, equivalent to 0.6x ■ EBITDA margin1 of 7%, compared with 8% a year book-to-bill earlier ■ Order ba
Slide 13: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Impacted by lower activity levels ■ Brownfield activity improving ■ Revenue down 44% vs last year to NOK 1.9 billion ■ Revenue up 10% vs last year to NOK 2.4 billion ■ Order intake of NOK 0.9 billion, equivalent to 0.5x ■ Order intake of NOK 1.7 billion, e
Slide 14: Services
Services ■ Impacted by activity slowdown in subsea services ■ EBIT margin1 of 8.8%, down year-on-year from and a maturing production asset services portfolio 9.7% ■ Revenue down 20% vs last year to NOK 1.2 billion ■ Order intake of NOK 0.4 billion, equivalent to 0.3x ■ EBITDA margin1 of 12.7% driven
Slide 15: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 2Q 2017 Order Backlog by Execution Date NOK million Order Backlog and Intake Evolution NOK million Potential additional revenue from existing agreements 40 Order backlog Order intake Projects backlog Services backlog 35 35.0 30 31.7 31.2 30.7 30.7 25 3.0 20
Slide 16: Financial Guidance
Financial Guidance Revenue Balance Sheet and Cash flow ■ Positive long-term offshore, deepwater outlook ■ Capex and R&D ≈ 2% of revenue ■ Near-term uncertainty on timing of awards ■ Several major capex investment plans ■ 2017 Projects revenue expected down around 15% from 2016 completed in 2016 ■ 20
Slide 17: Agenda | 2Q 2017
Agenda | 2Q 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 Second-Quarter and Half-Year Results for 2017 July 12, 2017 Slide 17
Slide 18: Additional Information
Additional Information © 2017 Aker Solutions Second-Quarter and Half-Year Results for 2017 July 12, 2017 Slide 18
Slide 19: 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 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 Non-qualifying hedges 18 36 25 15 94 -4 -11 -11 -18
Slide 20: Income Statement
Income Statement NOK million Income statement consolidated 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 Revenue 8,048 7,484 7,864 31,896 6,463 6,969 5,987 6,138 25,557 5,173 5,425 Operating expenses (7,501) (6,963) (7,682) (30,055) (5,955) (6,405) (5,509) (
Slide 21: Balance Sheet
Balance Sheet NOK million Assets 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 Property, plant and equipment 3,754 3,792 3,962 3,882 3,934 3,735 3,808 3,721 3,564 Intangible assets 6,388 6,518 6,539 6,403 6,306 6,305 6,314 6,280 6,525 Financial assets (non-current) 17 17 16
Slide 22: Cashflow
Cashflow NOK million Cashflow 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 EBITDA continuing operations 547 521 182 1,841 508 563 477 380 1,929 355 305 Change in cashflow from operating activities (627) 311 1,414 93 (836) (1,094) (769) 1,081 (1,617) (257) (
Slide 23: Split Per Segment
Split Per Segment NOK million Revenue 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 Projects 6,454 5,988 6,335 25,690 5,051 5,474 5,003 5,100 20,627 4,066 4,232 Services 1,654 1,456 1,551 6,281 1,476 1,449 1,019 1,057 5,001 1,068 1,156 Other 50 104 79 273 25
Slide 24: Split Per Segment
Split Per Segment NOK million NCOA 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 Projects (786) (1,098) (2,477) (1,805) (1,309) (223) (1,297) (810) (239) Services 1,564 1,471 1,145 1,143 1,493 824 921 640 603 Other (122) (58) (275) (271) (283) (185) (528) (803) (818) NCOA 6
Slide 25: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 Projects 408 361 524 1,749 386 436 393 387 1,602 269 295 Services 271 283 200 988 158 176 116 168 618 152 147 Other (32) (13) (29) (
Slide 26: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 2Q 2015 3Q 2015 4Q 2015 FY 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 Subsea 3,754 3,524 3,899 15,278 2,992 3,360 2,873 2,693 11,917 2,182 1,883 Field Design 2,747 2,504 2,506 10,610 2,075 2,130 2,133 2,414 8,751 1,887 2,353 El
Slide 27: © 2017 Aker Solutions
© 2017 Aker Solutions
Slide 28: 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