Aker Solutions Nordic Energy Summit 213, 21 March Leif Borge CFO 212 Aker Solutions Slide 1
This is Aker Solutions Employees: 19 5 Contract staff: 5 5 Revenues: 45 bn EBITDA: 4.7 bn Market Cap: 32. bn Provides oilfield products, systems and services for customers in the oil and gas industry world-wide Built on more than 17 years of industrial tradition Employs approximately 25 people in more than 3 countries Revenues and profits: 212. Market capitalisation as of February 213. 212 Aker Solutions Slide 2
9 Business areas Engineering Drilling technologies Subsea Umbilicals Process systems Mooring and loading systems Maintenance, modifications and operations Oilfield services and marine assets Well intervention services 212 Aker Solutions Slide 3
We have ambitious financial targets Revenues to double from 21 to 215 NOK billion EBITDA margin 1 : improve with 3-4 % points % 5 4 3 2 1 12 1 8 6 4 2 21 211 212 215 21 211 212 215 1 Recurring EBITDA margin 212: Last four quarters 212 Aker Solutions Slide 4
Our vision is to be the preferred partner for solutions in the oil and gas industry through living our values Customer relations Introduced regional structure Key account management Targeted top customers Performance quality and HSE Reduced quality cost by +5% Strengthened risk management 3% reduction in TRI frequency Technology 135 development projects 2+ common technology themes New licences, patents Acquisition of Enovate and MPO People and teams 3 3 recruited in 212 Strengthened leadership team Training and retention 212 Aker Solutions Slide 5
The main trends in oil and gas our priorities Trends Priorities Business Areas Increased demand for oil and gas Offshore and remote Frontier exploration, Arctic, LNG ENG, DRT, SUB, PRS, UMB Complexity, deep water and harsh environment Deepwater, Subsea infrastructure, FPSO, UDW rigs, CO2 ENG, SUB, DRT, PRS, MLS, UMB Declining production, increased recovery and extended lifetime of existing fields EOR and IOR, Subsea processing, boosting, Late life modifications, Subsea tie backs, LWI MMO, SUB ENG, PRS, WIS, OMA Unconventional resources as the new kid on the block Horizontal wells, HO, dewatering WIS, PRS, DRT Regional and market focus to better deploy our core competencies 212 Aker Solutions Slide 6
Offshore oil & gas markets Expected total E&P spending 213-217 per country Global 8-1 % CAGR over the period Brazil Norway 25bn 22bn USA Australia UK Angola M sia India MZ 19bn 15 bn 15 bn 1bn 75bn 4bn 25bn Offshore focus, deepwater priority Balance growth between North Sea and International Source: Rystad Energy Dcube, AKSO Analysis 212 Aker Solutions Slide 7
Million USD E&P spending growth strengthens Global E&P CAPEX spend Rebounded in 211, expected to be 644bn USD in 213, up from 64bn USD in 212 Exploration at the forefront of spending growth Growth for next 5 years 1-15% Source: Barclays Capital Equity Research, Global E&P Spending Update, 4 December 212 Offshore global E&P purchasing spend (OPEX & CAPEX) 6 5 4 3 Opex Modification & brownfield Capex Development & well Capex Exploration Capex Long term continuous growth 1 % CAGR 2 1 25 26 27 28 29 21 211 212 213 214 215 216 217 Source: Rystad DCube, 14 Nov 212; Selection: offshore purchases, USD million, nominal numbers 212 Aker Solutions Slide 8
Q4 212 Key figures Revenues and EBITDA NOK billion Order intake and backlog NOK billion 14 Revenues EBITDA Intake Backlog 3,5 3 6 12 3 25 5 56.7 1 12. 2,5 2 4 8 2 15 3 6 1,5 4 2 1,5 1.2 1 5 9.1 2 1 Q3 4 1 2 3 Q4 Q3 4 1 2 3 Q4 Q3 4 1 2 3 Q4 Q3 4 1 2 3 Q4 211 212 211 212 211 212 211 212 Public 213 Aker Solutions Slide 9
ROCE (%) EBIT margin (%) EBITDA margin (%) 212 Mixed performance by the Business Areas ENG MMO PRS MLS DRT SUB UMB WIS OMA 11,5 11,1 8,7 8,8 2,5 1,9 14,4 14,8 12,4 12,1 8,3 9,5 4,7 19,2 17,8 15,4-1,7-36,6 1,6 1,3 8,2 8, 1,3,8 13,6 13,4 1,4 1,5 6,2 7,9 8,5 1,9 6,7 99,6-4,5-6,8-46,7 32,5 3,1 23,1 21,8 1,7 2,7 5,4 -,4 211 212 212 Aker Solutions Slide 1
Strong shareholder value creation in 212 Share price performance 212 against peers 1 NOK share 14 12 1 8 6 4 2 des-211 feb-212 Feb apr-212 Apr jun-212 Jun aug-212 Aug okt-212 Oct Dec des-212 Aker Solutions +9 % Cameron +3 % OSEBX +22 % NOV + % FMC -7 % Current EV/EBITDA 213 trading 2 Peers 13,1x 9,9x 8,8x 8,1x 7,8x 7,4x 6,5x 6,5x FTI CAM SLB WG AMEC AKSO NOV HAL 1 Indexed to Aker Solutions share price January 212 2 Source: Bloomberg 12.2.213 Public 213 Aker Solutions Slide 11
Dividend still a priority Dividend per share 1 NOK million Dividend policy 3,9 4, «The Board of Directors considers that the average dividend payments, over time, should amount to 3-5 percent of the net profit, either through cash dividend and/or share buy-back.» 2,6 2,75 1,6 29 21 211 212 213 1 Year of payment 2 Proposed by the Board of Directors 2 212 Aker Solutions Slide 12
Status Cat B project The Cat B System Definition Phase (SDP) is ongoing The purpose of the SDP is to fully mature all aspects of the concept Technology development challenges related to subsea and riser design need to be resolved before SDP can be completed When SDP is satisfactorily completed the project can move into the next phase, including award of major subcontractor agreements Public 213 Aker Solutions Slide 13
Developing unique positions Cat B Åsgard Snorre A DRT ENG OMA SUB WIS ENG SUB DRT MMO Front End Spectrum Public 213 Aker Solutions Slide 14
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