Slide 1: 2Q 2021
2Q 2021 Fornebu, July 15, 2021 Kjetel Digre and Idar Eikrem 2021 © Aker Solutions
Slide 2: 2Q 2021 | Transition Journey On Track
2Q 2021 | Transition Journey On Track Revenue Excluding special items EBITDA Excluding special items 7.0 NOK BILLION 392 NOK MILLION Financials and Outlook ■ Financials continue on-track with plans, 1.8x book-to-bill 10 600 8 ■ Record high tendering activity at NOK 90 billion, about 25% 400 related
Slide 3: 2Q 2021 | New Awards
2Q 2021 | New Awards Renewables and Electrification, Subsea Field Development Maintenance and Modifications NOK 1.2 billion NOK 2.2 billion Photo: OKEA NOK 8.8 billion ■ EPCI contract for HVDC platform for ■ Topside modification contract from ■ Major Subsea Gas Compression the East Anglia THREE offs
Slide 4: Jansz-Io Subsea Gas Compression
Jansz-Io Subsea Gas Compression World-Leading Subsea Technology ■ The world’s first subsea gas compression project outside Norway ■ Reduced costs and increased recovery ■ Improved environmental footprint ■ Three times the compression power of Åsgard, at similar size ■ All-electric, remotely controll
Slide 5: NOK 90 Billion of Tendering
48 NOK BILLION 13 NOK BILLION 11 NOK BILLION NOK 90 Billion of Tendering 3 NOK BILLION Tendering by Reporting Segment NOK Billion 15 NOK BILLION Renewables and Field Development 56 Subsea 23 EMM1 11 1 Electrification, Maintenance and Modifications) 2021 © Aker Solutions
Slide 6: High Demand for Early-Phase Capabilities
High Demand for Early-Phase Capabilities ■ 44 front-end contracts awarded in the second quarter of 2021 1H 2021 1H 2020 ■ 11 studies converted to FEEDs during the first half of 2021 Typical Ongoing Studies ■ Oil and Gas Total front-end studies 76 89 ■ Electrification ■ Offshore Wind ■ Hydrogen Energ
Slide 7: On Track – Positive Outlook
On Track – Positive Outlook Short-Term Medium-Term Building a Stronger Foundation Repositioning and Transforming ■ Health, safety and quality ■ Leverage NCS tax relief projects ■ Business continuity through the pandemic ■ Growth in renewables and low-carbon ■ Maintain strong position in global O&G m
Slide 8: Financial Performance
Financial Performance Idar Eikrem, CFO 2021 © Aker Solutions
Slide 9: 2Q 2021 | Transition Journey On Track
2Q 2021 | Transition Journey On Track NOK million 2Q 2021 2Q 2020 1H 2021 1H 2020 2020 Financials continue on-track with plans, order backlog Revenue 7,020 6,721 13,490 15,322 29,396 increased by 29% from same quarter last year Revenue ex. special items 7,018 6,724 13,487 15,316 28,548 EBITDA 388 38
Slide 10: Solid Finances – Net Cash Position of NOK 0.8 billion
Solid Finances – Net Cash Position of NOK 0.8 billion 2 ■ Working capital1 at minus NOK 398 million Debt Maturity Profile2 NOK billion ■ Cashflow from operations at NOK 259 million 6 Undrawn revolving credit facility Drawn debt 5.0 ■ Cashflow from investments at minus NOK 28 million 4 ■ Net cash pos
Slide 11: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 ■ Revenue of NOK 2.7 billion 2.7 NOK BILLION 95 NOK MILLION ■ Recently awarded projects in early phases of execution 4 400 12% ■ EBITDA1 of NOK 95 million (3.6% margin) 3 300 9% 9% 9% 9% ■ Margins negatively impacted in the period due to pr
Slide 12: Electrification, Maintenance and Modifications
Electrification, Maintenance and Modifications Revenue EBITDA and Margin1 ■ Revenue of NOK 2.4 billion 2.4 NOK BILLION 126 NOK MILLION ■ Slight increase year-on-year driven by increased progress on ongoing projects 4 200 10% 3 100 4% 4% 4% 5% 5% ■ EBITDA1 of NOK 126 million (5.3% margin) ■ Slight in
Slide 13: Subsea
Subsea Revenue EBITDA and Margin1 ■ Revenue of NOK 2.0 billion 2.0 NOK BILLION 224 NOK MILLION ■ Currently in early phases of execution on recently awarded work 4 500 15% 3 400 12% 12% 11% 12% ■ EBITDA1 of NOK 224 million (11.0% margin) 9% 2 300 9% ■ Very strong order intake of NOK 8.8 billion (4.3x
Slide 14: Solid Order Backlog and Visibility
Solid Order Backlog and Visibility Order Backlog – by Execution Year NOK billion Renewables and Energy Transition3 NOK billion, % 20 Subsea Energy Transition share incl. low-carbon solutions for oil and gas production Other 17.9 Renewables and Field Development EMM1 Revenue Order Backlog 15 7.1 12.7
Slide 15: Summary Outlook
Summary Outlook ■ Positive outlook for project ■ 2021 overall revenue seen at sanctioning, both in traditional oil around NOK 28 billion and gas and related to Energy ■ 2021 overall underlying EBITDA Transition continues to be seen up from 2020 ■ Solid secured backlog of NOK 46 to the higher end of
Slide 16: Q&A
Q&A Kjetel Digre and Idar Eikrem #PowerTheChange 2021 © Aker Solutions
Slide 17: Additional Information
Additional Information 2021 © Aker Solutions Second-Quarter Results 2021 July 15, 2021 Slide 17
Slide 18: Guidance 2021 – Additional Items
Guidance 2021 – Additional Items Guidance ■ Net financial items1 about minus NOK 80 million, per quarter ■ D&A2 about NOK 1.1 to 1.2 billion, per year ■ ‘Other’ EBITDA3 about minus NOK 50 to 100 million, per quarter ■ Capex and R&D about 30% reduction in 2021 vs. 2020 ■ Working capital about NOK -50
Slide 19: Increased Sanctioning on NCS Driven by Tax Incentives
Increased Sanctioning on NCS Driven by Tax Incentives Orange = won by Aker Solutions NCS Expected NCS prospects and already awarded projects Alke Frosk Kårstø electrification Trine & Trell Askeladd West Garantiana Linnorm Troll electrification Brasse Grane D, F Melkøya / Snøhvi
Slide 20: Tendering for NOK 90 Billion
Tendering for NOK 90 Billion About 25% Related to Energy Transition Renewables and Electrification, Maintenance Subsea Field Development and Modifications Renewables and decarbonization Decarbonization solutions for Complete subsea production incl. solutions for offshore wind, electrification
Slide 21: Transition Journey Underway
Transition Journey Underway ■ Ambition to grow revenue base Revenue NOK billion Oil & Gas Renewables and Energy Transition* by about 10% annually towards 2025 >43 ■ NOK 46 billion backlog, and 38 NOK 90 billion ongoing tenders 34 per 2Q 2021 29 ~28 ■ Strong position within Energy Transition (incl. r
Slide 22: Transition Journey Underway
Transition Journey Underway Cost Reduction and Synergies Capex NOK billion Capital Structure NOK billion NOK billion (excl. dividend, and IFRS 16) -30% 1.2 Per 2Q 2021 Cash generation, target 3.0 Cash generation, ambition 3.5 3.0 0.6 -30% 0.8 0.4 0.4 2.6 Overhead Cost improvements Target overhead 20
Slide 23: Ongoing Work Related to Energy Transition Technology
Ongoing Work Related to Energy Transition Technology Jansz-Io Norcem CCS Northern Lights Norfolk East Anglia THREE Subsea gas Carbon capture Storage of compression facility captured CO2 HVDC platforms HVDC platform Photo: Aker Carbon Capture Photo: Equinor Heimdal and Empire Wind CO2-Neutral Troll W
Slide 24: Revenue Related to Renewables and Energy Transition
Revenue Related to Renewables and Energy Transition Including Low-Carbon Solutions for Oil and Gas Production* NOK million Revenue 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 Total Revenue (excl. special items) 9,252 9,634 10,049 38,161 8,592 6,724 6,393 6
Slide 25: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 Restructuring 10 12 46 70 155 117 183 61 516 2 3 Non-qualifying hedges (4) 5 1 0 10 (8) (1) (5) (4) (7) (2) Gain on dividend distribution of CCUS an
Slide 26: Income Statement
Income Statement NOK million Income statement consolidated 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 Revenue 9,251 9,636 10,049 38,163 8,601 6,721 7,198 6,875 29,396 6,470 7,020 Operating expenses (8,510) (8,933) (9,542) (35,452) (8,604) (6,340) (6,122)
Slide 27: Cashflow
Cashflow NOK million Cashflow 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 EBITDA 742 703 508 2,711 (3) 382 1,077 83 1,539 429 388 Change in cashflow from operating activities (493) (949) 407 (2,134) (511) (472) (182) 529 (638) 53 (129) Net cashflow from op
Slide 28: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Property, plant and equipment 3,947 4,160 4,229 4,394 4,051 3,912 3,567 3,400 3,397 Intangible assets including Goodwill 6,317 6,397 6,450 6,325 6,155 6,002 5,825 5,806 5,768 Right-of-us
Slide 29: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Total equity attributable to the parent 10,325 10,729 10,526 10,675 9,879 9,141 7,870 7,784 7,903 Non-controlling interests 123 110 97 78 78 58 38 38 37 T
Slide 30: Split Per Segment
Split Per Segment NOK million Revenue 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 Renewables & Field Development 2,972 3,552 3,872 13,765 3,110 2,303 2,538 2,879 10,829 2,750 2,655 Electrification, Maintenance & Modifications 3,502 3,528 3,354 13,477 2,693
Slide 31: Split Per Segment
Split Per Segment NOK million NCOA 2Q 2019 3Q 2019 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Renewables & Field Development (655) (295) (347) (151) 128 23 (945) (431) (507) Electrification, Maintenance & Modifications 2 244 (215) 119 75 (278) (235) 111 412 Subsea 305 735 616 1,236 794
Slide 32: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 2Q 2019 3Q 2019 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 Renewables & Field Development 311 165 34 753 (107) 204 193 259 549 248 95 Electrification, Maintenance & Modifications 193 186
Slide 33: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 2Q 2020 2Q 2021 Africa 5% 1% Asia Pacific 14 % 23 % North America 7% 6% Norway 68 % 65 % Europe 2% 1% South America 4% 4% Total 100 % 100 % Total amount in NOK billion 35.6 45.8 2021 © Aker Solutions Second-Quarter Results 2021 July 15,
Slide 34: 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 35: 2021 © Aker Solutions
2021 © Aker Solutions