Slide 1: 3Q 2023
3Q 2023 Fornebu, October 30, 2023 Kjetel Digre, CEO Idar Eikrem, CFO 2023 © Aker Solutions
Slide 2: 3Q 2023 | Continued Solid Performance
3Q 2023 | Continued Solid Performance Revenue Excluding special items EBITDA Excluding special items Financials 14.3 NOK BILLION 1.5 NOK BILLION ■ Solid increase in key financials from same period last year ■ Very strong performance in Subsea segment in the quarter 15 1.6 1.4 ■ Large secured backlog
Slide 3: 3Q 2023 | Operational Highlights
3Q 2023 | Operational Highlights Aker BP portfolio Draugen: Electrification Sunrise: HVDC Rosebank: FPSO West White Rose: HUC & Marine Ops Jansz: Subsea Gas Compression 2023 © Aker Solutions Third-Quarter Results 2023 October 30, 2023 Slide 3
Slide 4: 3Q 2023 | New Orders
3Q 2023 | New Orders Renewables and Field Development Increased activity in consultancy and FEED studies Growth in existing contracts NOK 1.1 billion Life Cycle Nyhamna frame agreement extension for Shell in Norway Growth in existing contracts and call-offs in frame agreements NOK 3.5 billio
Slide 5: Tender Value at NOK 103 Billion
Tender Value at NOK 103 Billion Tender Value Development 64 NOK billion NOK 115 BILLION 120 105 100 103 90 80 81 80 78 79 60 30 0 3Q’21 4Q’21 1Q’22 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 6 NOK BILLION 2 NOK BILLION 11 NOK BILLION 20 NOK BILLION About 65% related to Aker Solutions segments excl. Subsea1
Slide 6: Creating the World-Class Subsea Solutions Provider
Creating the World-Class Subsea Solutions Provider OneSubsea Joint Venture ↳ Largest subsea tree installed base ↳ Leading technology portfolio ↳ Full cycle integration capability ↳ Shared culture of integrity, collaboration & innovation 70% 20% 10% ↳ Highly complementary fit Equity Holding Uniquely
Slide 7: Outlook
Outlook ■ Well positioned for long-term growth and shareholder value creation ■ Solid financial position ■ De-leveraged balance sheet with net cash position of NOK 7.4 bn ■ Subsea JV unlocking significant shareholder value and contribute to our business through our 20% ownership ■ High secured order
Slide 8: Financial Performance
Financial Performance Idar Eikrem, CFO 2023 © Aker Solutions
Slide 9: 3Q 2023 | Solid Performance
3Q 2023 | Solid Performance NOK million 3Q 2023 3Q 2022 2Q 2023 2022 Revenue 14,262 10,035 14,246 41,417 Financials continue on-track with Revenue ex. special items1 14,274 10,041 14,192 41,378 targets, with a strong financial position EBITDA 1,419 736 1,099 2,934 EBITDA margin 10.0% 7.3% 7.7% 7.1%
Slide 10: 3Q 2023 | Net Cash Position of NOK 7.4 Billion
3Q 2023 | Net Cash Position of NOK 7.4 Billion 1 Net cash position1 of NOK 7.4 billion Debt Maturity Profile1 NOK billion ■ In addition, NOK 1 billion invested in liquidity funds in quarter Undrawn revolving credit facility ■ Not including proceeds from Subsea transaction closed on Oct 2 nd 8 Drawn
Slide 11: 3Q 2023 | Cash Generation
3Q 2023 | Cash Generation Change in Cash and Cash Equivalents NOK million Solid cash generation in quarter 231 ■ Cash flow from operations of NOK 1.9 billion in 574 the quarter 911 ■ Driven by solid operational performance and continued improvement in working capital 1 511 991 ■ CAPEX investments of
Slide 12: High Order Backlog – Solid visibility for activity forward
High Order Backlog – Solid visibility for activity forward Order Backlog by Execution Year NOK billion Renewables and Energy Transition1 % 50 Share of Order Backlog 42.0 40 3Q 2021 3Q 2022 3Q 2023 10.8 30 23.1 3.3 20 14.6 22.5 35% 32% 15% 5.6 13.6 10.2 10 6.3 4.3 8.4 6.1 2.6 4.5 0 4Q 2023 2024 2025
Slide 13: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 Financials and Highlights 5.6 NOK BILLION 239 NOK MILLION ■ Revenue of NOK 5.6 billion in quarter 6 250 14% ■ 57% increase compared to same period last year 5 12% 200 10% 4 150 8% ■ EBITDA1 of NOK 239 million (4.3% margin) in quarter 3 100
Slide 14: Life Cycle
Life Cycle Revenue EBITDA and Margin1 Financials and Highlights 3.2 NOK BILLION 163 NOK MILLION ■ Revenue of NOK 3.2 billion in quarter 4 200 10% ■ 11% increase from same period last year 8% 3 150 6% ■ EBITDA1 of NOK 163 million (5.0% margin) in quarter 5% 5% 5% 6% 5% 2 100 ■ Continued solid perform
Slide 15: Subsea
Subsea Revenue EBITDA and Margin1 Financials and Highlights 5.6 NOK BILLION 1.2 NOK BILLION ■ Revenue of NOK 5.6 billion in the quarter 6 1,400 25% 22% ■ Delivered revenue growth of 62% compared to same period last year 5 1,200 17% 18% 20% 17% 1,000 15% 4 800 15% ■ EBITDA1 of NOK 1.2 billion (21.8%
Slide 16: 3Q 2023 | Subsea as Discontinued Operations
3Q 2023 | Subsea as Discontinued Operations NOK million 3Q 2023 3Q 2022 2Q 2023 2022 Revenue 1 9,102 6,613 8,881 27,500 Subsea treated as discontinued Revenue ex. special items 9,114 6,619 8,826 27,461 EBITDA 194 150 193 647 operations in accordance with IFRS EBITDA margin 2.1% 2.3% 2.2% 2.4% EBITDA
Slide 17: Summary Outlook
Summary Outlook ▪ On track with strategy and targets ▪ 2023 overall revenues is expected to be around NOK 34 billion excl. the Subsea segment ▪ Increased revenues and margins in the quarter compared to last year ▪ EBITDA-margin in segments excluding Subsea, will be around their current levels in 202
Slide 18: Q&A
Be AkerSolutions We solve global energy challenges Ca f for future generations 7
Slide 19: Additional Information
Additional Information 2023 © Aker Solutions
Slide 20: Well Positioned for Shareholder Value Creation
Well Positioned for Shareholder Value Creation Aker Solutions post-close of JV, ambitions ▪ NOK 69 billion of backlog at 3Q-2023, excl. Subsea, majority of which are lower-risk NCS projects with upside potential through alliance models ▪ EBITDA margin, excl. Subsea, to increase from current levels ▪
Slide 21: Ordinary Dividend Policy of 30-50% of Annual Net Profit
Ordinary Dividend Policy of 30-50% of Annual Net Profit Priorities Maintain sufficient Balanced capital allocation strategy to protect Financial robustness and drive growth in shareholder value Prudent management of the balance sheet ■ Financial robustness to handle business cycles ■ Maintain flexib
Slide 22: Guidance | Additional Items
Guidance | Additional Items As-is basis, incl. Subsea, previous guiding Aker Solutions post Subsea JV Revenues excluding subsea of NOK 34 billion in 2023 (w/ Subsea as discontinued operations). Revenues Around NOK 54 billion (~30% growth in 2023) Revenues forecasted to grow 10% in 2024 Around minus
Slide 23: Timing of selected large projects in the portfolio, by Segment
Timing of selected large projects in the portfolio, by Segment Renewables and Field Development Subsea Project Customer Award year Delivery year (est.) Project Customer Award year Delivery year (est.) Johan Castberg Equinor 2017 2024 Jansz, subsea gas compression Chevron 2021 2025 Hugin A Aker BP 20
Slide 24: Renewables and Transitional Energy Solutions
Renewables and Transitional Energy Solutions NOK million Revenue 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Total revenue (excl. special items) 7,311 8,666 29,464 8,301 10,581 10,041 12,455 41,378 11,427 14,192 14,274 Renewables and Transitional Energy So
Slide 25: Special Items
Special Items Aker Solutions as historically reported NOK million, (Gain) / Loss Special items (EBITDA) 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Restructuring 19 0 25 1 0 (0) 1 3 2 0 3 Non-qualifying hedges (1) 3 (7) (18) 32 (4) 2 12 5 10 3 Other specia
Slide 26: Income Statement | Aker Solutions as historically reported
Income Statement | Aker Solutions as historically reported NOK million Income statement consolidated 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Revenue 7,314 8,668 29,473 8,291 10,635 10,035 12,456 41,417 11,495 14,246 14,262 Operating expenses (6,873) (8
Slide 27: Income Statement | Subsea as Discontinued Operations
Income Statement | Subsea as Discontinued Operations NOK million Income statement consolidated 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Revenue 4,951 5,326 19,878 5,330 7,283 6,613 8,275 27,500 7,213 8,881 9,102 Operating expenses (4,870) (5,262) (19,28
Slide 28: Cash Flow
Cash Flow NOK million Cash flow 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 EBITDA continuing operations 80 64 593 155 121 150 220 647 229 193 194 EBITDA discontinued operations 360 519 1,249 443 532 586 727 2,288 640 906 1,225 Change in cash flow from ope
Slide 29: Balance Sheet – Assets
Balance Sheet – Assets Historical Assets held for reporting sale (IFRS) NOK million Assets 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2023 Property, plant and equipment 3,262 3,231 3,269 3,424 3,533 3,596 3,762 4,246 4,685 2,883 Intangible assets including Goodwill 5,
Slide 30: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity Historical Assets held for reporting sale (IFRS) NOK million Liabilities and equity 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 3Q 2023 Total equity attributable to the parent 7,870 7,833 8,011 8,727 9,129 9,244 9,940 10,506 11,120 1
Slide 31: Split Per Segment
Split Per Segment NOK million Revenue 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Renewables and Field Development 2,499 2,721 10,625 2,795 3,958 3,551 4,553 14,857 4,128 5,369 5,576 Life Cycle 2,406 2,568 9,197 2,490 3,160 2,938 3,576 12,164 2,933 3,343 3
Slide 32: Split Per Segment
Split Per Segment NOK million NCOA 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 NCOA (666) (1,784) (2,791) (2,307) (2,347) (4,032) (4,920) (5,753) (6,327) Order intake 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Renewables and Fi
Slide 33: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 3Q 2021 4Q 2021 FY 2021 1Q 2022 2Q 2022 3Q 2022 4Q 2022 FY 2022 1Q 2023 2Q 2023 3Q 2023 Renewables and Field Development 89 108 540 102 76 124 185 488 171 208 239 Life Cycle 126 92 420 140 189 146 188 663 161 164 16
Slide 34: Order Backlog by Market
Order Backlog by Market Backlog | Aker Solutions as historically reported Backlog | Subsea as discontinued operations NOK billion, % NOK billion, % Order Backlog by Market 3Q 2022 3Q 2023 Order Backlog by Market 3Q 2022 3Q 2023 Norway 54 % 77 % Norway 58 % 84 % Europe 14 % 7% Europe 19 % 9% North Am
Slide 35: Alternative Performance Measures
Alternative Performance Measures Basis for Preparation This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. The same measurement principles as presented in the Annual Report 2022 have been used when prepari
Slide 36: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Other/ Life Cycle Aker Solutions Field Development eliminations NOK million 3Q 2023 3Q 2022 3Q 2023 3Q 2022 3Q 2023 3Q 2022 3Q 2023 3Q 2022 EBITDA and EBIT terms are presented as they are used by financial analysts Revenue Non-qualifying
Slide 37: Alternative Performance Measures
Alternative Performance Measures Financing Measures Alternative financing and equity measures are presented as they are indicators of the Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used company’s ability to obtain financing and service its debts. by manag
Slide 38: 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 39: 2023 © Aker Solutions
2023 © Aker Solutions
Slide 40: 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