Aker Solutions Asa · OSL:AKSO
Aker Solutions Asa — Aker Kvaerner — Q4 2007 Earnings Presentation
24 slides from Aker Solutions Asa's earnings presentation, Feb 14, 2008
Slide 1: 4th Quarter and Preliminary Annual Results 2007
4th Quarter and Preliminary Annual Results 2007 14 February 2008 part of Aker Agenda Topic Speaker ■ Introduction Martinus Brandal, President & CEO ■ Financials Bjørn Erik Næss, EVP & CFO ■ Process & Construction Jarle Tautra, EVP P&C ■ Business areas & closing remarks Martinus Brandal, President &
Slide 2: 2007 – Best year ever
2007 – Best year ever ■ Record high financial performance* ● Revenue increased by 15 % ● EBITDA increased by 36 % ● EPS increased by 95 % The Gjøa semi-submersible platform ● Strong cash flow of NOK 2.7 billion from operations ■ Record setting profit in Subsea and P&T ■ Strong performance and positi
Slide 3: Key indicators
Key indicators Operating EBITDA EPS revenues NOK million NOK million NOK 18000 1100 1 067 2,75 1000 2,50 14 876 2,24 15000 2,25 900 800 2,00 12000 700 1,75 600 1,50 9000 500 1,25 400 1,00 6000 300 0,75 3000 200 0,50 100 0,25 0 0 0,00 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 06 07 07 07 07 06 07
Slide 4: Major contracts awarded in Q4 2007
Major contracts awarded in Q4 2007 Three subsea manifolds - Petrobras Two drilling equipment contracts – Daewoo Contract value ~USD 90 million Contract value ~USD 213 million Copper- gold project - Antofagasta Minerals S.A. Subsea production system, Morvin - StatoilHydro Contract value ~ USD 35 mill
Slide 5: Aker Clean Carbon established for accelerated commercialisation of CO2 capture technology
Aker Clean Carbon established for accelerated commercialisation of CO2 capture technology Aker Aker Kvaerner Rationale 70 % 30 % ■ Great future demand for CO2 capture technology ■ Accelerated technology development and ■ Investments in further development commercialisation of existing and new techno
Slide 6: Income statement consolidated
Income statement consolidated (in NOK million) 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Operating revenues 15 304 14 147 14 697 14 237 14 876 50 592 57 957 EBITDA 786 856 993 997 1 067 2 872¹ 3 913 Depreciation -100 -84 -88 -92 -167 -339 -431 EBIT 686 772 905 905 900 2 533 3 482 Net financial items -653 -
Slide 7: Assets; Debt and equity
Assets (in NOK million) 4Q06 1Q07 2Q07 3Q07 4Q07 Property, plant and equipment 1 761 1 964 2 127 2 324 2 815 Other fixed assets 5 606 5 401 5 195 5 134 5 543 Financial assets (non-current) 148 148 181 225 278 I B receivables (non-current) 54 60 60 15 14 I B receivables (current) 546 549 585 558 540
Slide 8: Improvement programme and dividend proposal
Improvement programme yielding run-rate savings of ~NOK 280 million by end of Q4 2007 ■ Major savings from MNOK Run-rate savings improvement within supply 1000 management Target 900 ● Improved terms and conditions 800 ● Improved quality of 700 subcontractors 600 ● Cost effective sourcing of 500 prod
Slide 9: Process & Construction Business Area: Capitalising on growth markets
Agenda Topic Speaker ■ Introduction Martinus Brandal, President & CEO ■ Financials Bjørn Erik Næss, EVP & CFO ■ Process & Construction Jarle Tautra, EVP P&C ■ Business areas & closing remarks Martinus Brandal, President & CEO ■ Q & A session part of Aker Slide 17 © 2008 Aker Kvaerner Process & Const
Slide 10: Global business – 4 800 own employees
Global business – 4 800 own employees(1) – 9 700 including flexible resources Process Construction Zoetermeer Shanghai Houston Global integration: Mumbai Global Key Accounts Construction and Project Management Sourcing from China Engineering in India Santiago Metals Melbourne Regional HQ’s Engineeri
Slide 11: Profitable growth
Profitable growth EBITDA (1) MNOK Margin MNOK Margin 250 9% 800 9% 746 213 700 200 8% 8% 200 181 600 176 7% 530 7% 7,2 % 152 146 500 150 129 6% 6% 116 400 377 108 100 5% 5% 100 300 71 60 4% 4,4 % 4% 200 50 3,7 % 3% 3% 100 0 2% 0 2% Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4
Slide 12: Metals; Construction
Metals Revenue EBITDA BNOK MNOK Margin 1,8 200 14 % 186 1,6 180 13,5 % 1,6 1,4 157 1,4 160 12 % 1,4 1,3 140 1,2 120 112 10 % 107 1,0 10,0 % 100 0,8 80 8,4 % 8% 8,1 % 0,6 60 0,4 40 6% 0,2 20 0,0 0 4% 2004 2005 2006 2007 2004 2005 2006 2007 BHP Spence copper, Chile Successful business with growth ambi
Slide 13: Process; Process & Construction summary
Process Revenue EBITDA BNOK MNOK Margin 7,0 400 10 % 353 6,0 5,9 350 5,3 8% 300 8,0 % 5,0 4,8 4,4 250 226 6% 4,0 200 175 3,0 4,7 % 4% 150 2,0 100 88 3,0 % 2% 1,0 50 1,6 % 0,0 0 0% 2004 2005 2006 2007 2004 2005 2006 2007 Ravensthorpe sulphuric acid plant ■ Mixed business portfolio with some of Aker K
Slide 14: Field Development
Agenda Topic Speaker ■ Introduction Martinus Brandal, President & CEO ■ Financials Bjørn Erik Næss, EVP & CFO ■ Process & Construction Jarle Tautra, EVP P&C ■ Business areas & closing remarks Martinus Brandal, President & CEO ■ Q & A session part of Aker Slide 27 © 2008 Aker Kvaerner Field Developme
Slide 15: Maintenance, Modifications and Operations; Subsea
Maintenance, Modifications and Operations EBITDA (in NOK million) 140 132 130 128 122 The White Rose field offshore Canada's East Coast Highlights 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 ● Increased profitability ● 5 year contract with Husky Oil (in NOK million) 4Q07 4Q06 2007 2006 Operations Limited for the
Slide 16: Products & Technologies; Process & Construction
Products & Technologies EBITDA (in NOK million) 294 245 218 202 167 Load out of process modules from Dubai to Aker Floating Production’s first FPSO being built at Jurong in Singapore Highlights 4Q 06 1Q 07 2Q 07 3Q 07 4Q 07 ● Record high EBITDA ● Continued strong drilling market (in NOK million) 4Q0
Slide 17: Simen Lieungh new CEO from 1 March
Simen Lieungh new CEO from 1 March ■ EVP for Field Development from 2002 – August 2007 ■ 20 year veteran of Aker Kvaerner ■ Considerable experience with all phases of large field development projects globally ■ Managing director of Arne Blystad AS from August 2007 – February 2008 part of Aker Slide
Slide 18: Financial guidance 2008-2010
Financial guidance 2008-2010 Continuous profitable growth ■ Revenues of NOK 58-60 billion in EBITDA margin (%) 2008 and thereafter 8-10 % 12 9-11 % annual growth in 2009 and 2010 10 ■ Steady growth of EBITDA margin: ~8.0 % 8 6.8 % approximately 8 % in 2008 5.7 % growing to 9-11 % in 2010 6 4.9 % ■ E
Slide 19: Additional information
Additional information part of Aker Slide 37 © 2008 Aker Kvaerner Order intake (in NOK million) 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Field Development 1 421 5 347 821 4 543 1 413 17 140 12 124 MMO 1 764 2 353 1 233 2 172 2 664 9 933 8 422 Subsea 2 240 2 266 4 200 1 905 4 006 11 747 12 377 Products & T
Slide 20: Order backlog; Net current operating assets
Order backlog (in NOK million) 4Q06 1Q07 2Q07 3Q07 4Q07 Field Development 20 385 20 881 16 973 17 540 15 695 MMO 12 245 11 977 10 605 10 406 10 683 Subsea 8 775 8 838 10 618 9 706 10 951 Products & Technologies 12 741 12 092 12 861 11 371 11 520 Process & Construction 7 989 11 706 11 848 11 749 10 9
Slide 21: Field Development; Maintenance, Modifications and Operations
Field Development (in NOK million) 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Operating revenues 4 731 4 817 4 598 3 807 3 159 16 125 16 381 EBITDA 242 220 246 222 203 903 891 EBIT 228 206 231 208 128 849 773 Order intake 1 421 5 347 821 4 543 1 413 17 140 12 124 Order backlog 20 385 20 881 16 973 17 540 15
Slide 22: Subsea; Products & Technologies
Subsea (in NOK million) 4Q06 1Q07 2Q07 3Q07 Q407 2006 2007 Operating revenues 2 097 2 136 2 429 2 571 2 715 6 941 9 851 EBITDA 138 171 222 282 285 479 960 EBIT 115 150 198 250 250 379 848 Order intake 2 240 2 266 4 200 1 905 4 006 11 747 12 377 Order backlog 8 775 8 838 10 618 9 706 10 951 8 775 10
Slide 23: Process & Construction; Other and eliminations
Process & Construction (in NOK million) 4Q06 1Q07 2Q07 3Q07 4Q07 2006 2007 Operating revenues 3 336 2 459 2 607 2 601 2 726 12 007 10 393 EBITDA 146 152 213 181 200 530 746 EBIT 133 144 208 175 195 496 722 Order intake 3 710 6 270 2 957 3 289 1 726 11 670 14 242 Order backlog 7 989 11 706 11 848 11
Slide 24: Copyright and Disclaimer
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