Slide 1: 1Q 2015
1Q 2015 Fornebu, April 29, 2015 Luis Araujo and Svein Stoknes
Slide 2: Forward-Looking Statements and Copyright
Forward-Looking Statements and Copyright This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations,
Slide 3: Agenda | 1Q 2015
Agenda | 1Q 2015 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A Session © 2015 Aker Solutions Slide 3 April 29, 2015 First-Quarter Results 2015 Preferred partner
Slide 4: Key Developments
Key Developments ■ Solid topline growth as sales rose in most business areas ■ Profit margins narrowed amid tougher commercial environment ■ Slow start to year for subsea services, particularly in North Sea ■ MMO capacity adjusted to counter slowdown in Norway ■ Major projects progressed as planned
Slide 5: Key Figures | 1Q 2015
Key Figures | 1Q 2015 Revenue and EBIT Order intake and backlog NOK billion NOK billion Revenue EBIT Intake Backlog 10 0,6 25 60 8 20 8.5 0,4 40 48.3 6 15 0.4 4 10 0,2 20 2 5 9.0 0 0,0 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2014 2015 2014 2015 2014 2015 2014 2015 © 2015 Aker
Slide 6: Focus on Operational Excellence and Cost Control
Focus on Operational Excellence and Cost Control ■ Steady progress on cost-savings programs in all areas ■ Major push to improve quality and efficiency in execution ■ Deeper synergies pursued throughout business ■ Focus on developing solutions to lower costs, improve productivity for customers ■ Col
Slide 7: Outlook
Outlook ■ Continued market uncertainty and challenging commercial environment amid concern over capital constraints ■ Steady tendering in main markets, though seeing projects postponed ■ North Sea activity sluggish next 1-2 years, projects like Johan Sverdrup to support industry ■ Healthy order inta
Slide 8: Agenda | 1Q 2015
Agenda | 1Q 2015 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A Session © 2015 Aker Solutions Slide 8 April 29, 2015 First-Quarter Results 2015 Preferred partner
Slide 9: 1Q 2015 | Consolidated Income Statement
1Q 2015 | Consolidated Income Statement ■ Year-on-year revenue growth for 1Q 2015 reached 14% ■ 1Q 2015 EBITDA (excluding one-off items) reached NOK 647 million, equivalent to a margin of 7.6% (NOK million) 1Q 15 1Q 14 2014 2013 Operating revenue and other income 8,500 7,482 32,971 29,058 EBITDA 591
Slide 10: 1Q 2015 | Financial Position
1Q 2015 | Financial Position ■ Net interest-bearing debt was NOK 889 million, gross debt reached NOK 3.7 billion ■ Financial leverage was 0.3x and gearing 15%, remaining well below policy of 1 x net interest- bearing debt / EBITDA and less than 50% net interest-bearing debt / equity ■ Robust total l
Slide 11: 1Q 2015 | Consolidated Cashflow, Capex and NCOA
1Q 2015 | Consolidated Cashflow, Capex and NCOA ■ 1Q 2015 cashflow from operations negative NOK 414 million ■ Working capital (NCOA) at end of 1Q reached NOK 90 million, showing expected increase versus 4Q 2014 on major project progress ■ Cashflow from investing activities of NOK 227 million, with c
Slide 12: Subsea
Subsea ■ Strong 1Q 2015 revenue growth to NOK 5.1 ■ Order intake in 1Q 2015 down 55% versus 1Q billion, up 23.7% vs. 1Q 2014 2014 to NOK 2.0 billion, 0.4x book-to-bill ■ Main driver was progress on major projects in ■ End 1Q 2015 order backlog was up 26.8% Norway, Angola, Congo and Brazil year-on-ye
Slide 13: MMO
MMO ■ 1Q 2015 Revenue down 4.6% vs. last year to ■ Order intake in 1Q 2015 up 85% versus 1Q NOK 2.5 billion 2014 to NOK 2.2 billion, 0.9x book-to-bill, driven ■ 1Q 2015 EBITDA margins of 2.4%, lower versus by markets outside of Norway 1Q 2014 and 4Q 2014 ■ End 1Q 2015 order backlog decreased 7.1% ■
Slide 14: Engineering
Engineering ■ Revenue growth of 20.6% vs. last year, reaching ■ Strong increase for 1Q 2015 order intake to NOK NOK 1 billion in 1Q 2015 4.9 billion, driven by the Johan Sverdrup EPma award, equivalent to 4.7x book-to-bill ■ Main driver was good progress on key projects in Norway and Asia ■ End 1Q 2
Slide 15: Good Visibility From Strong Order Backlog
Good Visibility From Strong Order Backlog1 1Q 2015 Order backlog by execution date Order backlog and intake evolution NOK billion NOK billion 53,9 49,0 48,3 48,3 60 20 39,6 50 15 40 21,4 30 10 18,1 17,8 20 9,0 6,2 5,9 5 3,6 8,3 4,2 10 0 0 2015 2016 2017 2018 → 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 Potential
Slide 16: Financial Guidance
Financial Guidance Revenue Balance sheet Positive long-term offshore, deepwater Maintenance capex / R&D ≈ 3% of revenue outlook Current major capex expansion plans to be Near-term uncertainty on award timings finished in 2015 Aim to at least maintain market share in Working capital: like
Slide 17: Agenda | 1Q 2015
Agenda | 1Q 2015 Introduction Luis Araujo Chief Executive Officer Financials Svein Stoknes Chief Financial Officer Q&A Session © 2015 Aker Solutions Slide 17 April 29, 2015 First-Quarter Results 2015 Preferred partner
Slide 18: Additional information
Additional information 1Q 2015
Slide 19: Consolidated income statement
Consolidated income statement NOK million Income statement consolidated 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 Operating revenue and other income 7,317 7,435 6,758 7,548 29,058 7,482 8,060 8,274 9,155 32,971 8,500 EBITDA 469 431 519 661 2,079 666 608
Slide 20: Consolidated assets & debt and equity
Consolidated assets & debt and equity NOK million Assets 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Property, plant and equipment 2,539 2,691 2,814 3,072 3,067 3,180 3,203 3,603 3,586 Intangible assets 5,057 5,253 5,131 5,524 5,585 5,731 5,810 6,143 6,238 Financial asset
Slide 21: Consolidated cashflow
Consolidated cashflow NOK million Cashflow 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2013 4Q 2014 FY 2014 1Q 2015 EBITDA continuing operations 488 439 567 668 2,162 623 587 617 785 2,675 591 Change in cashflow from operating activities (2,066) 1,117 (11) 1,457 497 (1,510) 1,239 (968
Slide 22: Split per segment
Split per segment NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 Subsea 3,784 4,103 3,653 4,164 15,703 4,105 4,672 5,054 5,461 19,293 5,077 Field Design 2,999 3,183 2,935 3,385 12,502 3,404 3,408 3,210 3,688 13,710 3,467 Other 629 244 226
Slide 23: Split per segment
Split per segment NCOA 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 Subsea 2,543 1,157 1,264 311 1,322 327 742 (332) 18 Field Design 117 352 268 (304) 275 250 532 71 212 Other 207 171 210 91 (105) (241) (394) (427) (140) NCOA 2,867 1,681 1,742 98 1,492 336 880 (688) 90 Net
Slide 24: Split per business area
Split per business area NOK million Revenues 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 Subsea 3,784 4,103 3,653 4,164 15,703 4,105 4,672 5,054 5,461 19,293 5,077 Maintenance, Modifications and Operations 2,267 2,509 2,296 2,599 9,671 2,583 2,546 2,403 2,
Slide 25: Split per business area
Split per business area Order intake 1Q 2013 2Q 2013 3Q 2013 4Q 2013 FY 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 FY 2014 1Q 2015 Subsea 18,855 3,800 3,367 2,668 28,691 4,423 18,463 1,791 2,630 27,306 1,996 Maintenance, Modifications and Operations 2,942 2,157 1,219 5,761 12,079 1,173 2,251 1,056 2,473 6