Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Pareto Conference 2014
19 slides from Aker Solutions Asa's conference presentation, Sep 10, 2014
Slide 1: Aker Solutions Pareto Conference
Preferred partner Aker Solutions Pareto Conference Oslo, September 10, 2014 © 2014 Aker Solutions Preferred partner
Slide 2: Two New Companies
Two New Companies New Aker Solutions ■ A leaner and more focused company with deeper synergies ■ Committed to operational excellence and organic growth ■ Well-positioned in fast-growing deepwater and subsea markets ■ Two reporting segments: Subsea and Field Design ■ Luis Araujo as CEO Akastor ■ Oilf
Slide 3: Timeline – Transaction Summary and Timetable
Timeline – Transaction Summary and Timetable Transaction Summary Deal Timetable Company Aker Solutions ASA Management roadshow launched Main exchange Oslo Stock Exchange Sep 15 New Aker Solutions prospectus published Aker Solutions splits into two companies: the new Aker Solutions and Akas
Slide 4: Timeline – Streamlining Aker Solutions
Timeline – Streamlining Aker Solutions Sale of WIS Sale of P&C to EQT to Jacobs Aker Solutions Sale of MLS Subsea and to Cargotec Field Design 2002 2010 2011 2013 2014 Future Akastor Oilfield services investment company Demerger of Aker Marine Contractors Merger of Demerger of Aker Maritime EPC busi
Slide 5: Aker Solutions – Investment Highlights
Aker Solutions – Investment Highlights A market leader in the growing subsea systems and equipment and offshore 1 engineering markets Well positioned for revenue growth underpinned by a strong existing order 2 backlog and increased manufacturing capacity Well positioned for gradual margin expansion
Slide 6: Market Leader in Subsea Systems and Engineering
1 Market Leader in Subsea Systems and Engineering Differentiated offering supporting… … strong market positions… 1 … in a strong market 2 Subsea Steady growth in offshore capex spending Long-standing relationships Subsea tree awards: 2013 – 2014 YTD (%) Offshore capex spending with key blue USD bill
Slide 7: Developing the Subsea Factory – SUB, ENG and MMO
1 Developing the Subsea Factory – SUB, ENG and MMO ■ The evolution of advanced subsea systems ■ Subsea production and processing into full ‘life of field’ solutions equipment market estimated to grow at 13-22% CAGR (2013-2020) ■ Links up subsea hardware, processing and sub-surface measurement and se
Slide 8: Market Fundamentals Reflected in Backlog Growth
2 Market Fundamentals Reflected in Backlog Growth Backlog development by segment 1 2Q 14 Backlog by execution year NOK billion NOK billion 2Q 14 backlog at 1.8x LTM 60 20 to 30 June 2014 revenue 50 15 40 30 10 18.6 20 14.5 5 9.9 10 5.5 5.4 0 0 4Q 11 2Q 12 4Q 12 2Q 13 4Q 13 2Q 14 2014 2015 2016 2017
Slide 9: Expanded Capacity to Deliver Backlog, Capture Growth
2 Expanded Capacity to Deliver Backlog, Capture Growth Egersund facility (Norway) Tranby facility (Norway) New Subsea assembly and New machinery, tooling and test hall facility flow loop infrastructure for increased Subsea plant capacity Ågotnes facility (Norway) New workshop and logistics facilitie
Slide 10: Gradual Margin Improvement to Continue
3 Gradual Margin Improvement to Continue Improved project and service mix Improved backlog quality Operational leverage and efficiencies AKSO installed base age profile 1 2Q 14 Subsea backlog by vintage Improving costs and margin delivery Number of operating x-mas trees NOK billion 600 12 ■ Operatio
Slide 11: Continuing Focus on Project Execution
3 Continuing Focus on Project Execution Deliver as bid ■ Aligned project work processes across BAs or better ■ Establishing a central PMO ■ Implemented common risk management procedures / revised internal policies on 2014+ control, project management, and reporting ■ Executive management 2013 focus
Slide 12: Positioned for growth and strong shareholder returns
4 Positioned for growth and strong shareholder returns Returns on capital already ...and returns set to improve Helped by high capital discipline ahead of the peer group... further in the medium term Return on average capital employed (ROACE) 1,2 Aker Solutions Net Capital Employed 3 and ROACE 4 ■ M
Slide 13: Focused business led by experienced management
5 Focused business led by experienced management A more focused business Supported by experienced operational management Before the demerger After the demerger E&Ps, offshore yards, EPC Luis Araujo (55) Svein Oskar Stoknes Oil exploration and Chief Executive (44) Customers companies and drilling pro
Slide 14: New Aker Solutions
New Aker Solutions Aker Solutions Subsea Field Design Maintenance, Subsea Umbilicals Engineering Modifications and Operations ■ Revenue: NOK 16.6 bn ■ Revenue: NOK 13.1 bn ■ EBITDA: NOK 1.7 bn (10.3%) ■ EBITDA: NOK 0.9 bn (6.7%) ■ EBIT: NOK 1.3 bn (7.6%) ■ EBIT: NOK 0.8 bn (5.9%) ■ Employees: 9,050
Slide 15: Strong Order Backlog and Intake
Strong Order Backlog and Intake 2Q 14 Order backlog by execution date Order backlog and intake evolution NOK billion NOK billion 20 53.9 60.0 42.5 41.1 40.9 15 39.6 39.4 50.0 10 40.0 18.6 23.6 21.4 14.5 30.0 5 9.9 20.0 9.2 5.5 5.4 6.3 5.9 5.2 0 10.0 2014 2015 2016 2018 2017 0.0 and beyond 1Q 13 2Q 1
Slide 16: Regional Market Outlook
Regional Market Outlook ■ Tight E&P capital discipline seen globally over next 1-2 years, followed by wave of projects ■ Slowdown in Norway’s MMO market ■ Strong project pipeline in offshore Norway, though risk of delays ■ Rapid spending growth in Angola and West Africa deepwater developments to pro
Slide 17: Financial Guidance
Financial Guidance Revenue Balance sheet The overall offshore market is seen as Maintenance capex / R&D ≈ 3% of growing around 7% per year over the revenues medium term Current major capex expansion plans to be We see our core engineering and finished by 2015 subsea markets growing around 10
Slide 18: Q&A
Preferred partner Q&A © 2014 Aker Solutions Preferred partner
Slide 19: 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