Slide 1: 1Q 2018
1Q 2018 Fornebu, April 27, 2018 Luis Araujo and Svein Stoknes © 2018 Aker Solutions
Slide 2: Agenda | 1Q 2018
Agenda | 1Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions First-Quarter Results 2018 April 27, 2018 Slide 2
Slide 3: Main Developments
Main Developments Major projects progress as planned Opportunities in floating wind Photo: Statoil ■ Increasing signs of recovery, ■ Top and bottom lines increase ■ Steady tendering activity though market still uncertain ■ Order intake almost doubles ■ Successful bond issuance and ■ Major projects p
Slide 4: Key Figures | 1Q 2018
Key Figures | 1Q 2018 Revenue EBITDA Order Intake Order Backlog 5.5 NOK BILLION 425 NOK MILLION 8.6 NOK BILLION 37.6 NOK BILLION Excl. special items 7 500 14 40 450 35 6 12 400 30 5 350 10 25 4 300 8 250 20 3 6 200 15 2 150 4 10 100 1 2 5 50 0 0 0 0 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 1Q 17 2Q 17 3Q 17 4Q
Slide 5: New Orders
New Orders Statoil Statoil/Kvaerner Wintershall Photo: Statoil Subsea production system orders Order to deliver modules for Johan Order for subsea production for Troll Phase 3 and Askeladd Castberg FPSO in Barents Sea system, umbilicals and services natural-gas developments for Nova field offshore N
Slide 6: Strong Demand for Early-Phase Capabilities
Strong Demand for Early-Phase Capabilities ■ Awarded 38 front-end contracts, a quarterly record 1Q 2018 1Q 2017 ■ One-third of orders for projects outside Norway ■ Eight awards won with Total front-end awards 38 33 alliance partners ■ 2 concept studies led to FEEDs ■ 7 FEEDs led to Concept studies l
Slide 7: Johan Sverdrup
Johan Sverdrup From Concept to Fully-Fledged Project EPMA framework agreement for as many as 10 years Pipeline facilities Front-end work Riser platform hook-up Fully-fledged project contracts Framework agreement Engineering, procurement and management assistance Umbilicals Feasibility & concept FEED
Slide 8: Digital Solutions to Drive Value
Digital Solutions to Drive Value © 2018 Aker Solutions First-Quarter Results 2018 April 27, 2018 Slide 8
Slide 9: Outlook
Outlook ■ Market outlook for oil services remains uncertain, though increasing signs of recovery ■ Industry improvement measures are lowering break-even costs and spurring project sanctions ■ Steady tendering in main markets, where key projects are seen sanctioned in 2018 ■ Well placed in key region
Slide 10: Agenda | 1Q 2018
Agenda | 1Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions First-Quarter Results 2018 April 27, 2018 Slide 10
Slide 11: 1Q 2018 | Income Statement
1Q 2018 | Income Statement (NOK million) 1Q 2018 1Q 2017 2017 ■ Revenue for 1Q 2018 up 6% year-on-year Revenue 5,483 5,173 22,461 ■ Reflecting higher activity in Field Design and EBITDA 425 355 1,519 EBITDA margin 7.8% 6.9% 6.8% growth in Services EBITDA ex. special items 1 384 363 1,665 ■ Underlyin
Slide 12: 1Q 2018 | Cashflow and Financial Position
1Q 2018 | Cashflow and Financial Position ■ Cashflow from operations NOK 533 million Debt Maturity Profile1 NOK million ■ Working capital minus NOK 1,422 million 6,000 Drawn debt Undrawn credit facilities ■ Net debt NOK 475 million and leverage 0.4x 4,000 ■ Gross debt of NOK 3.2 billion 5,000 ■ Avai
Slide 13: Projects
Projects ■ Continued solid project execution ■ EBIT margin1 of 4.7% vs 3.2% a year earlier ■ Newly awarded work in early phase of execution ■ Strong order intake of NOK 6.5 billion, equal to ■ Revenue up 4% vs last year to NOK 4.2 billion 1.5x book-to-bill ■ EBITDA margin1 of 7.6% vs 6.6% a year ear
Slide 14: Projects | Subsea Projects | Field Design
Projects | Subsea Projects | Field Design ■ Subsea with continued solid project execution ■ Solid Brownfield activity across several geographies ■ Activity reflecting early phase on new contracts ■ Revenue rose 21% to NOK 2.3 billion vs year earlier ■ Strong order intake of NOK 3 billion, equal to ■
Slide 15: Services
Services ■ Increased activity level in production asset services ■ EBIT margin1 of 8.0% vs 10.6% a year earlier ■ Revenue rose 8% vs last year to NOK 1.2 billion ■ Strong order intake of NOK 2.2 billion, equal to ■ EBITDA margin1 of 11.7% vs 14.2% a year earlier, 1.9x book-to-bill mainly driven by c
Slide 16: Order Backlog Gives Reasonable Visibility
Order Backlog Gives Reasonable Visibility 1Q 2018 Order Backlog by Execution Date NOK billion Order Backlog and Intake Evolution NOK billion 16.5 Potential additional revenue from existing agreements Order backlog Order intake 40 Projects backlog Services backlog 11.1 37.6 3.3 34.6 30 30.7 30.7 27.2
Slide 17: Financial Guidance
Financial Guidance Revenue and Margin Balance Sheet and ■ Positive long-term offshore, Cashflow deepwater outlook ■ Capex and R&D ≈ 2% of annual ■ Markets remain challenging but revenue, with flexibility increasing signs of a gradual recovery ■ Working capital likely to fluctuate ■ Steady tendering
Slide 18: Agenda | 1Q 2018
Agenda | 1Q 2018 Answers Questions Introduction Financials Q&A Session Luis Araujo Svein Stoknes Luis Araujo CEO Chief Executive Officer Chief Financial Officer Svein Stoknes CFO © 2018 Aker Solutions First-Quarter Results 2018 April 27, 2018 Slide 18
Slide 19: Additional Information
Additional Information © 2018 Aker Solutions First-Quarter Results 2018 April 27, 2018 Slide 19
Slide 20: Special Items
Special Items NOK million Special items (EBITDA) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 Onerous leases - 4 39 39 82 - 6 - 33 40 - Restructuring 15 19 0 130 163 (1) 81 8 (2) 86 7 Non-qualifying hedges (4) (11) (11) (18) (44) 3 4 10 (6) 10 (3) (Gain) lo
Slide 21: General
General Basis for Preparation This presentation provides financial Alternative Performance Special Items Impacting Profit Measures highlights for the quarter for Aker Solutions, a Norwegian limited company Measures NOK million Projects Services Other/eliminations Aker Solutions 1Q 2018 1Q 2017 1Q 20
Slide 22: General
General Order Intake Measures Financing Measures Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures, Alternative financing and equity measures are presented as they are indicators of the company’s ability as they are indicators of the company’s reve
Slide 23: Income Statement
Income Statement NOK million Income statement consolidated 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 Revenue 6,463 6,969 5,987 6,138 25,557 5,173 5,425 5,419 6,444 22,461 5,483 Operating expenses (5,955) (6,405) (5,509) (5,759) (23,628) (4,817) (5,120) (
Slide 24: Balance Sheet
Balance Sheet NOK million Assets 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 Property, plant and equipment 3,882 3,934 3,735 3,808 3,721 3,564 3,341 3,316 3,077 Intangible assets 6,403 6,306 6,305 6,314 6,280 6,525 6,344 6,447 6,343 Financial assets (non-current) 16 16 67
Slide 25: Cashflow
Cashflow NOK million Cashflow 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 EBITDA continuing operations 508 563 477 380 1,929 355 305 401 458 1,519 425 Change in cashflow from operating activities (836) (1,094) (769) 1,081 (1,617) (257) (762) (615) 702 (932
Slide 26: Split Per Segment
Split Per Segment NOK million Revenue 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 Projects 5,051 5,474 5,003 5,100 20,627 4,066 4,232 4,184 5,179 17,660 4,239 Services 1,476 1,449 1,019 1,057 5,001 1,068 1,156 1,165 1,170 4,560 1,159 Other 25 48 (9) 25 88
Slide 27: Split Per Segment
Split Per Segment NOK million NCOA 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 Projects (1,805) (1,309) (223) (1,297) (810) (239) 151 (712) (1,350) Services 1,143 1,493 824 921 640 603 595 511 550 Other (271) (283) (185) (528) (803) (818) (731) (643) (622) NCOA (933) (100
Slide 28: Split Per Segment – Underlying Margins
Split Per Segment – Underlying Margins NOK million EBITDA (excl. special items) 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 Projects 386 436 393 387 1,602 269 295 323 405 1,292 322 Services 158 176 116 168 618 152 147 157 151 607 135 Other (22) (23) (37) (
Slide 29: Projects | Subsea and Field Design
Projects | Subsea and Field Design NOK million Revenue 1Q 2016 2Q 2016 3Q 2016 4Q 2016 FY 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 Subsea 2,992 3,360 2,873 2,693 11,917 2,182 1,883 1,801 2,471 8,336 1,956 Field Design 2,075 2,130 2,133 2,414 8,751 1,887 2,353 2,386 2,776 9,402 2,284 Elim
Slide 30: © 2018 Aker Solutions
© 2018 Aker Solutions
Slide 31: 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