Slide 1: 4Q 2019
4Q 2019 February 7, 2020 Luis Araujo and Ole Martin Grimsrud 2020 © Aker Solutions
Slide 2: Agenda | 4Q 2019
Agenda | 4Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions Fourth-Quarter Results 2019 February 7, 2020 Slide 2
Slide 3: Main Developments
Main Developments Ærfugl Phase Two Floating Wind Photo: EDP Renewables ■ Johan Sverdrup on stream ■ Ærfugl project phase 2 ■ Good progress on 20/25/30 ■ Strong project execution brought forward strategy ■ Troll electrification FEED ■ First oil produced from ■ Another record year in ■ Increased stake
Slide 4: Key Figures | 4Q 2019
Key Figures | 4Q 2019 Revenue EBITDA1 Order Intake Order Backlog 7.3 NOK BILLION 434 NOK MILLION 5.6 NOK BILLION 25.4 NOK BILLION Excl. special items 8 700 6 40 7 600 5 6 30 500 4 5 400 4 3 20 300 3 2 200 2 10 1 1 100 0 0 0 0 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 4Q 18 1Q 19 2Q
Slide 5: Key Figures | 2019
Key Figures | 2019 Revenue EBITDA1 Order Intake Order Backlog 29.3 NOK BILLION 2.2 NOK BILLION 19.6 NOK BILLION 25.4 NOK BILLION Excl. special items 35 3.0 30 40 30 2.5 25 30 25 2.0 20 20 1.5 15 20 15 1.0 10 10 10 0.5 5 5 0 0.0 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 201
Slide 6: New Orders
New Orders Aker BP Vår Energi and Equinor Undisclosed Client Ærfugl phase two – Brownfield services on the Brownfield services in Asia Intelligent Subsea win NCS Pacific BP Jana Marine Equinor Cypre front-end study in Brownfield services in the Troll B and C electrification Trinidad and Tobago Middl
Slide 7: Record High Demand for Early-Phase Capabilities
Record High Demand for Early-Phase Capabilities ■ Awarded 40 front-end contracts, resulting in a new 2019 2018 record year of 151 new studies overall ■ 38% of 4Q studies for international projects Total front-end studies 151 150 ■ 29 of these led to FEED studies, up 52% from last year +52% ■ 11 have
Slide 8: Leading a Sustainable Energy Future
Leading a Sustainable Energy Future Renewables Low Carbon Conventional 20% 25% 2020 © Aker Solutions Fourth-Quarter Results 2019 February 7, 2020 Slide 8
Slide 9: Leading a Sustainable Energy Future
Leading a Sustainable Energy Future Low Carbon Carbon Capture, Utilization and Storage Just Catch unit to Twence (Netherlands) Norcem HeidelbergCement EPC project (Norway) Electrification Troll B and C electrification FEED (NCS) Subsea Gas Compression Jansz-Io (Australia) 25% Unmanned Platforms Jans
Slide 10: Outlook
Outlook ■ Tendering for NOK 60 billion ■ Front-end continues to generate new opportunities ■ Strong execution ■ Opportunities in low carbon solutions ■ All supporting long-term growth 2020 © Aker Solutions Fourth-Quarter Results 2019 February 7, 2020 Slide 10
Slide 11: Agenda | 4Q 2019
Agenda | 4Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions Fourth-Quarter Results 2019 February 7, 2020 Slide 11
Slide 12: 4Q 2019 | Income Statement
4Q 2019 | Income Statement1 NOK million 4Q 2019 4Q 2018 2019 2018 ■ Fourth quarter revenue increased by 6% year-on-year Revenue 7,348 6,954 29,263 25,232 ■ Full-year revenue increased by 16% from 2018 and 30% last EBITDA 434 483 2,244 1,810 two years EBITDA margin 5.9% 7.0% 7.7% 7.2% EBITDA ex. spec
Slide 13: 4Q 2019 | Cashflow and Financial Position
4Q 2019 | Cashflow and Financial Position ■ Working capital1 at NOK 781 million, and NOK 119 Debt Maturity Profile2 NOK million million when excluding the effects of IFRS 16 Drawn debt Undrawn revolving credit facility 6,000 ■ Cashflow from operations at NOK 740 million ■ Cashflow from investments a
Slide 14: Projects
Projects ■ Continued high activity mainly driven by Field ■ EBIT margin1 of 2.8% vs 3.9% a year earlier Design ■ Order intake of NOK 4.4 billion, equal to ■ Revenue up 1% vs last year to NOK 5.7 billion 0.8x book-to-bill ■ EBITDA margin1 of 6.6% vs 6.2% a year earlier ■ Order backlog of NOK 15.9 bil
Slide 15: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Activity driven by increased progress, with several ■ Continued high Brownfield activity into 4Q projects still in early phases of execution ■ Significant hook-up jobs finalized during 2H 2019 ■ Revenue up 13% to NOK 2.3 billion vs 4Q 2018 ■ Revenue down 5
Slide 16: Services
Services ■ Increased activity level in both Production Asset ■ EBIT margin1 of 6.5% vs 11.6% a year earlier Services and Subsea Lifecycle Services ■ Order intake of NOK 1.1 billion, equal to ■ Revenue rose 24% vs last year to NOK 1.6 billion 0.7x book-to-bill ■ EBITDA margin1 decreased to 10.3% vs 1
Slide 17: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 4Q 2019 Order Backlog by Execution Date NOK billion Order Backlog and Intake Development NOK billion Potential additional revenue from existing agreements Order backlog Order intake 15.1 40 Projects backlog Services backlog 35.1 30 33.3 29.5 5.4 27.4 4.0 25.
Slide 18: Financial Guidance
Financial Guidance Revenue and Margin ■ Positive long-term outlook in both traditional offshore and new markets ■ Market activity is increasing, but remains competitive ■ Steady high tendering activity, good balance between regions and segments ■ Strong order intake at the start of 2020 ■ High proba
Slide 19: Agenda | 4Q 2019
Agenda | 4Q 2019 Answers Questions Introduction Financials Q&A Session Luis Araujo Ole Martin Grimsrud Luis Araujo CEO Chief Executive Officer Chief Financial Officer Ole Martin Grimsrud CFO 2020 © Aker Solutions Fourth-Quarter Results 2019 February 7, 2020 Slide 19
Slide 20: Additional Information
Additional Information 2020 © Aker Solutions Fourth-Quarter Results 2019 February 7, 2020 Slide 20
Slide 21: Special Items and IFRS 16 Leasing
Special Items and IFRS 16 Leasing NOK million, (Gain) / Loss Special items (EBITDA) 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 Restructuring (2) 86 7 5 31 (3) 39 3 10 12 46 70 Non-qualifying hedges (6) 10 (3) (4) (3) (1) (11) (2) (4) 5 1 0 (Gain)
Slide 22: Alternative Performance Measures
Alternative Performance Measures Basis for Alternative Performance Measures Special Items Impacting Profit Measures Preparation Aker Solutions discloses alternative performance measures in NOK million Projects Services Other/eliminations Aker Solutions This presentation provides financial addition t
Slide 23: Alternative Performance Measures
Alternative Performance Measures Financing Measures Net Current Operating Assets (NCOA) or Working Capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, Alternative financing and equity measures are present
Slide 24: Alternative Performance Measures
Alternative Performance Measures Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used by Order Intake Measures management to assess the borrowing capacity of a company. The ratio shows how many years it would Order intake, order backlog and book-to-bill ratios
Slide 25: Income Statement
Income Statement NOK million Income statement consolidated 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 Revenue 6,444 22,461 5,483 6,254 6,541 6,954 25,232 7,256 7,525 7,134 7,348 29,263 Operating expenses (5,986) (20,941) (5,057) (5,815) (6,078) (6
Slide 26: Balance Sheet – Assets
Balance Sheet – Assets NOK million Assets 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Property, plant and equipment 3,316 3,077 2,977 2,905 3,044 2,945 2,916 3,031 3,065 Intangible assets 5,814 5,695 5,646 5,596 5,686 5,690 5,578 5,669 5,710 Right-of-use assets - - - - -
Slide 27: Balance Sheet – Liabilities and Equity
Balance Sheet – Liabilities and Equity NOK million Liabilities and equity 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Total equity attributable to the parent 6,981 6,822 6,828 6,849 7,502 7,241 7,044 7,355 7,134 Non-controlling interests 67 25 28 45 106 107 123 110 97 Tot
Slide 28: Cashflow
Cashflow NOK million Cashflow 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 EBITDA continuing operations 458 1,519 425 439 463 483 1,810 634 623 553 434 2,244 Change in cashflow from operating activities 702 (932) 107 (121) (506) (370) (890) (937) (5
Slide 29: Split Per Segment
Split Per Segment NOK million Revenue 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 Projects 5,179 17,660 4,239 4,862 5,211 5,608 19,920 5,952 6,015 5,627 5,658 23,253 Services 1,170 4,560 1,159 1,337 1,277 1,324 5,096 1,299 1,503 1,549 1,645 5,995 O
Slide 30: Split Per Segment
Split Per Segment NOK million NCOA 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Projects (712) (1,350) (1,540) (1,067) (1,141) (262) (66) 502 (239) Services 511 550 646 633 693 908 936 896 844 Other (643) (622) (521) (591) (306) (398) (139) (71) 176 NCOA (844) (1,422) (1,4
Slide 31: Split Per Segment – Excluding Special Items
Split Per Segment – Excluding Special Items NOK million EBITDA (excl. special items) 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 Projects 405 1,292 322 328 373 348 1,371 478 475 455 372 1,780 Services 151 607 135 173 190 194 692 187 210 174 169 740
Slide 32: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2Q 2019 3Q 2019 4Q 2019 FY 2019 Subsea 2,471 8,336 1,956 2,084 2,079 2,042 8,162 2,439 2,343 2,171 2,309 9,262 Field Design 2,776 9,402 2,284 2,810 3,170 3,551 11,814 3,512 3,680 3,
Slide 33: 2020 © Aker Solutions
2020 © Aker Solutions
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