Slide 1: 4Q 2021
4Q 2021 Fornebu, February 8, 2022 Kjetel Digre and Idar Eikrem #PowerTheChange 2022 © Aker Solutions
Slide 2: 4Q 2021 | Solid Financial and Operational Performance
4Q 2021 | Solid Financial and Operational Performance Revenue Excluding special items EBITDA Excluding special items Financials and Outlook 8.7 NOK BILLION 593 NOK MILLION ■ Delivered on 2021 financial targets 10 600 ■ The Board proposes dividend of NOK 0.20 per share for 2021 8 400 ■ Delivered orde
Slide 3: 2021 | On-Track With Strategy and Growth Targets
2021 | On-Track With Strategy and Growth Targets Revenue Excluding special items EBITDA Excluding special items Order Intake Order Backlog 29 NOK BILLION 1.9 NOK BILLION 40 NOK BILLION 49 NOK BILLION 49 50 5 50 50 40 40 38 4 40 40 38 34 33 29 29 30 3 2.8 30 30 26 20 2 1.9 20 20 1.2 10 1 10 10 0 0 0
Slide 4: 4Q 2021 | Delivered 1.4x Book-to-Bill in 2021
4Q 2021 | Delivered 1.4x Book-to-Bill in 2021 Renewables and Electrification, Subsea Field Development Maintenance and Modifications NOK 5.2 billion NOK 1.4 billion NOK 2.7 billion Photo: Aker BP Photo: Aker BP ■ Heimdal and Veslefrikk ■ Growth in scope on several existing ■ Mero 4 subsea production
Slide 5: NOK 81 Billion of Tendering
37 NOK BILLION 17 NOK BILLION 9 NOK BILLION 3 NOK BILLION 15 NOK BILLION NOK 81 Billion of Tendering Tendering by Reporting Segment NOK Billion Renewables and Field Development 46 About 20% Related to Energy Transition Subsea 28 EMM1 7 1 Electrification, Maintenance and Modifications 2022 © Aker Sol
Slide 6: Potential for Record-High Order Intake in 2022
Potential for Record-High Order Intake in 2022 Potential projects which could be worth more than NOK 40 billion1 already announced Norway ■ Wisting, FPSO NOK 8-12 billion ■ Noa Fulla, topsides NOK 10-12 billion ■ Noa Fulla, subsea production system NOK 2-3 billion ■ Valhall and King Lear, topsides a
Slide 7: Enhancing Our Engineering Offering Through Consulting
Enhancing Our Engineering Offering Through Consulting ■ The energy transition unlocks investments across industries ■ Engage early in emerging industries ■ Develop new skills and offerings based on existing capabilities ■ Shape, design and optimize the next generation energy value chains ■ Advise ou
Slide 8: Our Transition Journey Is On-Track
Our Transition Journey Is On-Track Ambitious Revenue Growth Targets NOK Billion Ambitious Energy Transition Targets Renewables and Energy Transition share1 Renewables and Energy Transition1 Reducing Own Emissions 1/3 of revenues by 2025 2 ~45 50% by 2030 2/3 of revenues by 2030 Net zero by 2050 38 >
Slide 9: Outlook
Outlook ■ Well positioned in key growth markets ■ Capitalize on near-term cyclical recovery ■ Well positioned to capitalize on longer-term structural changes in the energy markets ■ Tendering for NOK 81 billion and high ongoing FEED activity ■ Supporting the potential for record-high order intake in
Slide 10: Financial Performance
Financial Performance Idar Eikrem, CFO 2022 © Aker Solutions
Slide 11: 4Q 2021 | Solid Financial Performance
4Q 2021 | Solid Financial Performance NOK million 4Q 2021 4Q 2020 2021 2020 Financials ahead of targets, strong cash generation, Revenue Revenue ex. special items 1 8,668 8,666 6,875 6,839 29,473 29,464 29,396 28,548 gradually increasing margins and increased order intake EBITDA 583 83 1,842 1,539 E
Slide 12: Solid Finances – Net Cash Position of NOK 2.2 billion
Solid Finances – Net Cash Position of NOK 2.2 billion 2 ■ Working capital1 at minus NOK 1,784 million Debt Maturity Profile2 NOK billion ■ Improvement from 3Q driven by increased progress triggering Undrawn revolving credit facility milestones and pre-payments from customers 6 Drawn debt 5.0 ■ Cashf
Slide 13: Renewables and Field Development
Renewables and Field Development Revenue EBITDA and Margin1 ■ Revenue of NOK 2.7 billion 2.7 NOK BILLION 108 NOK MILLION ■ Recently awarded projects in early phases of execution 4 400 12% ■ EBITDA1 of NOK 108 million (4.0% margin) 3 300 9% 9% 9% ■ Several projects in early phases of execution, with
Slide 14: Electrification, Maintenance and Modifications (EMM)
Electrification, Maintenance and Modifications (EMM) Revenue EBITDA and Margin1 ■ Revenue of NOK 2.6 billion 2.6 NOK BILLION 92 NOK MILLION ■ Continued good progress on ongoing projects 4 200 10% ■ EBITDA1 of NOK 92 million (3.6% margin) ■ Increase from comparable quarter last year 5% 5% 4% 4% 3 100
Slide 15: Subsea
Subsea Revenue EBITDA and Margin1 ■ Revenue of NOK 3.4 billion 3.4 NOK BILLION 512 NOK MILLION ■ Increase from previous quarter driven by increased progress on recently awarded projects 4 600 20% ■ EBITDA1 of NOK 512 million (15.2% margin) 15% 14% 3 15% 400 11% ■ Solid performance on ongoing project
Slide 16: Solid Order Backlog and Visibility
Solid Order Backlog and Visibility Order Backlog by Execution Year NOK billion Renewables and Energy Transition1 NOK billion, % 28.7 30 Share of Order Backlog 25 4Q 2019 4Q 2020 4Q 2021 10.0 20 15 9.8 11.5 10 4.6 7% 11% 32% 5.5 5 2.6 3.5 9.0 1.9 4.4 1.2 1.3 2.5 0.6 0 1.6 2022 2023 2024 2025 --> Subs
Slide 17: Dividend Policy | Target 30-50% of Annual Net Profit
Dividend Policy | Target 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 flexibili
Slide 18: Summary Outlook
Summary Outlook Delivered on 2021 financial targets ■ 2022 overall revenue is at this stage On-track with strategy and targets expected up by more than 20% from 2021, based on secured backlog and market activity Dividend of NOK 0.20 per share proposed by the Board for 2021 ■ 2022 overall under
Slide 19: Q&A
kL — We solve global energy challenges _ gf for future generations S&S @ 4
Slide 20: Additional Information
Additional Information 2022 © Aker Solutions
Slide 21: Guidance – Additional Items
Guidance – Additional Items ■ 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 100 million, per quarter 1 Excluding the effects of currency and non-qualifying hedges 2 Depreciation and Amortization (includes
Slide 22: Our Transition Journey and Targets
Our Transition Journey and Targets +10% Annual Revenue Growth1 NOK 1 billion+ Annual Free Cashflow2 Renewables & Energy Transition share3 Target Renewables & Energy Transition3 ~45 6+ bn Nordsee Ost 38 >35 settlement 1Q 2021 1/3 of revenues by 2025 1/3 2/3 of revenues by 2030 Actual (excl. Nords
Slide 23: High Demand for Early-Phase Capabilities
High Demand for Early-Phase Capabilities ■ 13 front-end contracts won in 4Q, resulting in 103 for the full year ■ Fewer but larger front-end contracts 2021 2020 in 2021 compared to 2020 ■ Large projects related to the 103 159 expected uptick in NCS activity have entered FEED phase, with Total severa
Slide 24: Renewables and Energy Transition
Renewables and Energy Transition NOK million Revenue 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 Total revenue (excl. special items) 10,049 38,161 8,592 6,724 6,393 6,839 28,548 6,469 7,018 7,311 8,666 29,464 Revenue from Renewables and Energy Tran
Slide 25: Aker Solutions – Transition Journey Well Underway
Aker Solutions – Transition Journey Well Underway Selection of Ongoing Work Related to Renewables and Energy Transition Type Project Main scope Customer Region Type Project Main scope Customer Region Offshore Hywind Tampen Floating foundations for wind Equinor NOR Low-carbon Jansz-Io Subsea Gas Comp
Slide 26: 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. Aker Solutions ASA merged with Kværner ASA in November 2020. The consolidated financial statements
Slide 27: Alternative Performance Measures
Alternative Performance Measures Profit Measures Renewables & Electrification, Other/ EBITDA and EBIT terms are presented as they are used by Field Maintenance & Subsea eliminations Aker Solutions Aker Solutions Development Modifications financial analysts and investors. Special items are excluded f
Slide 28: 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 29: 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 30: Special Items
Special Items NOK million, (Gain) / Loss Special items (EBITDA) 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 Restructuring 46 70 155 117 183 61 516 2 3 19 0 25 Non-qualifying hedges 1 0 10 (8) (1) (5) (4) (7) (2) (1) 3 (7) Gain on dividend distribut
Slide 31: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 Revenue 10,049 38,163 8,601 6,721 7,198 6,875 29,396 6,470 7,020 7,314 8,668 29,473 Operating expenses (9,542) (35,452) (8,604) (6,340) (6,122) (
Slide 32: Cashflow
Cashflow NOK million Cashflow 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 EBITDA 508 2,711 (3) 382 1,077 83 1,539 429 388 441 583 1,842 Change in cashflow from operating activities 407 (2,134) (511) (472) (182) 529 (638) 53 (129) 135 898 957 Net ca
Slide 33: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Property, plant and equipment 4,229 4,394 4,051 3,912 3,567 3,400 3,397 3,262 3,231 Intangible assets including Goodwill 6,450 6,325 6,155 6,002 5,825 5,806 5,768 5,743 5,724 Right-of-us
Slide 34: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Total equity attributable to the parent 10,526 10,675 9,879 9,141 7,870 7,784 7,903 7,870 7,833 Non-controlling interests 97 78 78 58 38 38 37 35 28 Total
Slide 35: Split Per Segment
Split Per Segment NOK million Revenue 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 Renewables & Field Development 3,872 13,765 3,110 2,303 2,538 2,879 10,829 2,750 2,655 2,499 2,721 10,625 Electrification, Maintenance & Modifications 3,354 13,477 2,
Slide 36: Split Per Segment
Split Per Segment NOK million NCOA 4Q 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 NCOA 177 660 929 312 (280) (118) (398) (666) (1,784) Order intake 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 Renewables & Field Development
Slide 37: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 4Q 2019 FY 2019 1Q 2020 2Q 2020 3Q 2020 4Q 2020 FY 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 FY 2021 Renewables & Field Development 34 753 (107) 204 193 259 549 248 95 89 108 540 Electrification, Maintenance & Modificati
Slide 38: Order Backlog by Market
Order Backlog by Market NOK billion, % Order Backlog by Market 4Q 2020 4Q 2021 Africa 3% 2% Asia Pacific 10 % 20 % North America 8% 12 % Norway 75 % 61 % Europe 1% 1% South America 3% 4% Total 100 % 100 % Total amount in NOK billion 38.0 49.2 2022 © Aker Solutions Fourth-Quarter Results 2021 Februar
Slide 39: 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 40: 2022 © Aker Solutions
2022 © Aker Solutions