Preferred partner

Aker Solutions
September 2013
Investor Presentation

2013 Aker Solutions

Preferred partner

This is Aker Solutions

Aker Solutions brings together engineering, technologies and
services for oil and gas drilling, field development and production

Decommissioning

Exploration

Development

Production

Geological

Concept,

Process

interpretation
Exploration
drilling
Production testing

FEEDs
Detail design,
project mgmt
Hook-up,
completion and
commissioning

optimisation Water, gas

injection
Secondary
recovery,
Tertiary
(IOR)
recovery (EOR)
De-bottle Well internecking
vention services

2013 Aker Solutions

Slide 2

September 2013

Tie-ins

Investor presentation

Drilling

upgrades
Platform
upgrades
Lowpressure
production

Planning of safe

decommissioning and
removal

Preferred partner

This is Aker Solutions

Provides oilfield products, systems and

services for customers in the oil and gas

industry world-wide
Built on more than 170 years of industrial

tradition
Employs approximately 28 000 people in

more than 30 countries

Employees: 21 500
Contract staff: 6 500
Revenues: 44.9 bn
EBITDA: 4.7 bn
Market Cap: 24.8 bn
Revenues and profits are in NOK and for 2012.
Market capitalisation as of 27 Aug 2013.

2013 Aker Solutions

Slide 3

September 2013

Investor presentation

Preferred partner

From reservoir to production

Aker Solutions brings

together engineering,
technologies and services for
oil and gas drilling, field
development and production
1. Geology and geophysics
2. Deepwater drilling
3. Drilling risers
4. Surface trees
5. Subsea systems
6. Umbilicals and flowlines
7. Hydrate inhibition
8. Mooring equipment
9. Processing technology
10. Asset integrity management
11. Well services
12. Deepwater well intervention
13. Offshore loading systems

2013 Aker Solutions

Slide 4

10
4
8

9
2

12

13

3
5
6

11
1

September 2013

Investor presentation

Preferred partner

Where we are a global footprint

Countries: 31
Locations: ~ 80
- engineering hubs
- service bases
- manufacturing plants
- sales offices
- project management

Angola

Canada

Finland

Indonesia

Norway

Norway [cont.]

Singapore

Calgary
St. Johns

Helsinki
Ulvila

Batam
Jakarta

France

Ivory Coast

Beijing
Shanghai
Shenzhen
Yichang

Paris

Abidjan

Germany

Malaysia

Stord
Sundebru
Tranby
Troms
Trondheim
gotnes
lesund

Singapore

China

Aberdeen
Great Yarmouth
Hastings
London
Maidenhead
Stockton-on-Tees
Whitstable

Bad Fallingsbostel
Erkelenz

Kuala Lumpur
Labuan
Pekan
Port Klang

Asker
Arendal
Bergen
Egersund
Fornebu
Hammerfest
Horten
Kristiansand S
Kristiansund N
Lyngdal
Midsund
Moss
Narvik
Oslo
Porsgrunn
Sandnessjen
Stavanger
Stokke

UK

Luanda

Australia
Brisbane
Melbourne
Perth

Azerbaijan
Baku

Cyprus

Brazil

Limassol

Curitiba
Rio das Ostras
Rio de Janeiro

Denmark

Brunei
Kuala Belait

2013 Aker Solutions

Ghana
Takoradi

Copenhagen
Esbjerg

Equ. Guinea

Nigeria
India
Kakinada
Mumbai
Pune

Lagos
Port Harcourt

Malabo

Slide 5

September 2013

Investor presentation

South Korea
Geoje
Pusan

Sweden
Gothenburg

Oman

USA

Muscat

Thailand

Russia

Bangkok
Sattahip
Songhkla

Bakersfield
Houston
Katy
Mobile

UAE

Vietnam

Abu Dhabi
Dubai

Vung Tau
Ho Chi Minh City

Moscow
St Petersburg

Saudi Arabia
Al-Khobar

Preferred partner

Markets and strategy

Investor Presentation

2013 Aker Solutions

Slide 6

September 2013

Investor presentation

Preferred partner

E&P spending growth strengthens

Global E&P CAPEX spend
Rebounded in 2011, expected to
be 644bn USD in 2013, up from
604bn USD in 2012
Exploration at the forefront of
spending growth
Growth for next 5 years 10-15%

Source: Barclays Capital Equity Research, Global E&P Spending Update, 4 December 2012

Offshore global E&P purchasing

spend (OPEX & CAPEX)
Long term continuous
growth
10 % CAGR

Source: Rystad DCube, 14 Nov 2012; Selection: offshore purchases, USD million, nominal numbers
2013 Aker Solutions

Slide 7

September 2013

Investor presentation

Preferred partner

Market outlook by region

25 bn USD

Expected total E&P spending 2013-2017 per country

Source: Rystad DCube, 14 Nov 2012; Selection: offshore purchases, USD million for the years 2013-2017, sf5
2013 Aker Solutions

Slide 8

September 2013

Investor presentation

Preferred partner

Majors dominate offshore spending

Petrobras
Statoil
Shell
Chevron

Global offshore spend 2013 - 2017

ExxonMobil
BP
Total
Pemex
Eni
Saudi Aramco

600 000

Abu Dhabi NOC

500 000

Woodside

400 000

ConocoPhillips

300 000

CNOOC

200 000

Inpex

100 000

ONGC (India)

Million USD

0
2005

Noble Energy

2007

2009

2011

2013

2015

2017

Petronas
Anadarko
Apache

Million USD

2013 Aker Solutions

20 000

Slide 9

40 000

60 000

September 2013

80 000 100 000 120 000 140 000 160 000 180 000 200 000

Investor presentation

Preferred partner

NCS a very attractive and exciting market

Expected offshore E&P spend in 2013-2017 by country

Aker Solutions accessible market

segments is ~100 billion NOK in 2017

The NCS is the second biggest offshore

market over the next 5 years

A transparent, stable and predictable

market

Good mix between greenfield and

brownfield

1 400
1 200
1 000
800

NCS offshore spending expected to grow

with CAGR 7.7% in the 2012-2017 period

BnNOK

600
400
200
0

Expected offshore E&P spend in the North Sea

BnNOK

Market view confirmed through external

sources and further backed by internal
view
Gateway to the Arctic

300
250
200
150
100

Aker Solutions is in a unique position to

exploit the exiting opportunities going
forward

2013 Aker Solutions

Slide 10

September 2013

Investor presentation

50
0

2010

2011

2012

2013

2014

2015

2016

Preferred partner

2017

Subsea market continues strong growth

Market size by product group
MUSD

19 184

Subsea trees & control pods

Quest May 2013

Tree control packages

Quest Feb 2013

+22%

Subsea manifolds
Subsea production umbilicals installed

3 272

3 767

2005

2006

5 233

9 588

8 319
6 295

6 185

5 723

10 460

15 699
12 515

7 055

4 145

1 294
2004

2007

2008

2009

2010

2011

2012

2013e

2014e

2015e

2016e

2017e

2018e

Market size by region

MUSD

19 184

Africa/Medit.

North America

Quest May 2013

Asia Pacific/Middle East

South America

Quest Feb 2013

15 699
12 515

North Sea

9 588

8 319

3 272

3 767

2005

2006

5 233

6 295

5 723

6 185

10 460

7 055

4 145

1 294
2004

2007

2008

2009

2010

2011

2012

2013e

2014e

2015e

2016e

2017e

Sources: Quest Aug 2013

2013 Aker Solutions

Slide 11

September 2013

Investor presentation

Preferred partner

2018e

Offshore spending to grow in key markets

Global ~ 8% CAGR
over the period

UKCS

NCS

MUSD

South & East Asia

North America

Shipyards in Asia are

counted through operation in
regions where operated

South America

West of Africa

Australia

CAGR in graphs: Compound Annual Growth Rate for 2012-2017

Source: Rystad Energy, DCube 13 June 2013, USD million (nominal numbers)
Selection: Offshore purchases. Iran taken out in MENA.
2013 Aker Solutions

Slide 12

September 2013

Investor presentation

Preferred partner

Growth in regions
Norway
Worlds largest
offshore market

N America
Deep-water
picking up.

5%

7%

Share
of empl

Share of
revenues

Europe &
Africa

53%

46%

Share
of empl

Share of
revenues

Deepwater fields.

16%

17%

Share
of empl

Share of
revenues

Asia Pacific
Gas demand drive
our markets.

MENA
The largest oil
reserves.

Brazil
Booming market,
local content req.

2013 Aker Solutions

7%

6%

Share
of empl

Share of
revenues

Slide 13

September 2013

~ 1%

~1%

Share
of empl

Share of
revenues

Investor presentation

18%

22%

Share
of empl

Share of
revenues

Preferred partner

Business areas

Drilling technologies

Engineering

Mooring and loading

systems

2013 Aker Solutions

Slide 14

Subsea

Maintenance,
modifications and
operations

September 2013

Umbilicals

Oilfield services
and marine assets

Investor presentation

Process systems

Well intervention
services

Preferred partner

Positive market outlook for all drilling segments

Floaters

Jack-ups

Yearly number of newbuilds,

2015-2020 (estimates)

Number of newbuilds per

delivery year (contracted, per Nov 2012)

Internal
analyses

2008

20-25

Fixed installations

29

2009
Nordea

Pareto

25

23

2010

16

2011

27+

13

2012
Drilling
contractors
survey
Yards
survey

15-26

Several current and

upcoming prospects
in UKCS, NCS,
Australia and Brazil
29

2013

41

20-30

Average = 25
Singapore

China

Other

Source: Rystad Energy Dcube, Nordea, RigLogix, Pareto, Douglas Westwood, ODS, DRT analysis
2013 Aker Solutions

Slide 15

September 2013

Investor presentation

Preferred partner

MMO market CAGR in our regions of interest: 5-8%

Atlantic
Canada

~6%

Norway

~6%
25

19
1,6

2,1

2012

2017

United
Kingdom

~5%

2012

2017

~8%

Malaysia

22

17

Gulf of
Mexico

~5%
2012

1,4

1,7

2012

2017

2012

2017

Brunei

Australia

Aims to double their

Large upcoming LNG

production capacity
Construction mgmt.

contract with BSP

Selected new markets

Existing markets

2017

developments
200 500 MNOK of

service opportunity
for each development
beyond 2017

Source: BD estimates based on Rystad database, June 2012

2013 Aker Solutions

Slide 16

September 2013

Investor presentation

Preferred partner

Engineering global market outlook

Global engineering offshore CAPEX

Key highlights

MNOK/year

High activity in FEED, study and detailed

70 000

engineering markets
60 000

North Sea
(NCS,
UKCS)

50 000

Global CAGR 2012-2017 of 12.2 %

About 50-50% spending split on fixed and

floating facility developments

Brazil
North
America

40 000

NCS and UKCS detailed engineering market

on a predictable rapid development

North American market increases and

South & East

Asia

30 000

remains strong

Australia

20 000

Brazil capacity constrains evens out

MENA
West of
Africa

10 000

development
South & East Asia, Australia and West of

Africa are viewed as main growth markets

0
2012

Russia
2013

2014

2015

Source: Rystad DCube

2013 Aker Solutions

Slide 17

September 2013

Investor presentation

Preferred partner

Global market available for front end services

The current global

market is estimated to
NOK 6 bn
The market is expected

Brazil

to grow 33% over the

next 5 years

KL/Perth

London

This is a local market

requiring local
presence
close dialogue and

Houston

cooperation with the

customers
use of global
competence and
delivery models

2013 Aker Solutions

Slide 18

September 2013

Norway

Investor presentation

Preferred partner

Oilfield Services and Marine Assets

2Q 2013 Status

Asset values
Total NOK 5.2 bn

Skandi Aker (Total)

Vessel arrived in Angola in early August,

commencement of fixed 2-year contract expected
shortly

500

Aker Oildfield Services

700

Ezra

Skandi Santos (Petrobras)

Aker DOF Deepwater

4000

Continued strong operational performance:

Excellent client rating of operations
Operational uptime 86% in the quarter (uptime
impacted by planned and budgeted 12-day
maintenance stop in May)

Revenue, EBITDA
NOK million

Aker Wayfarer

Weak spot market in 2Q

230-day fixed charter contract with Wellstream
started late June.

390

232

Category B rig project (Statoil)

Cat B contract cancelled based on mutual

agreement between Aker Solutions and Statoil on
24 June 2013
Cancellation led to second-quarter costs of NOK
375 million, of which NOK 361 million were
booked as an impairment of the investments in
the Cat B rig, while the remaining were operating
costs

2013 Aker Solutions

Slide 19

September 2013

Investor presentation

203
119

105

96
28

31
-54

-63

2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013

Preferred partner

Key financials
Investor Presentation

2013 Aker Solutions

Slide 20

September 2013

Investor presentation

Preferred partner

Consolidated income statement

(NOK million)

2Q 13

2Q 12

YTD 2013

YTD 2012

2012

Operating revenues and other income

11,907

11,893

22,967

21,730

44,922

946

1,357

1,814

2,397

4,739

1651

1651

3251

(27)

37

(24)

63

36

(724)

(302)

(1,063)

(533)

(1,166)

222

1,055

751

1,864

3,573

(179)

(117)

(337)

(209)

(491)

FX on disqualified hedging instruments

129

(92)

128

(67)

(125)

Profit before tax

172

846

542

1,588

2,957

Tax

(48)

(168)

(149)

(384)

(697)

Profit for the period

124

678

393

1,204

2,260

7.9%

10.0%

7.9%

10.3 %

9.9%

0.44

2.50

1.44

4.43

8.33

EBITDA
Of which related to non-recurring items
Of which related to hedging
Depreciation and amortisation
EBIT
Net financial items

EBITDA margin (excl. non-recurring items)

Basic earnings per share (NOK)
1

NOK 165 million in gain from the sale of real estate in 2Q 2012 and NOK 160 million in 4Q 2012.

2013 Aker Solutions

Slide 21

September 2013

Investor presentation

Preferred partner

Key figures
Revenue and EBITDA

Order intake and backlog

NOK billion

NOK billion

14

Revenue

1,4

12

1,2

10

1,0

11.9

EBITDA

80

0,6

0,4

60

0.9

59.8

15

40

10

10.9

2012

2013 Aker Solutions

0,0

0
1Q 2Q 3Q 4Q 1Q 2Q
2012

2013

Slide 22

20

0,2

1Q 2Q 3Q 4Q 1Q 2Q

Cat B

20

Backlog

25

0,8

30

Intake

September 2013

2013

Investor presentation

1Q 2Q 3Q 4Q 1Q 2Q
2012

2013

1Q 2Q 3Q 4Q 1Q 2Q
2012

Preferred partner

2013

2Q 2013 | By business area

Revenue

Profitability

NOK million versus 2Q 2012

Percentage EBITDA margin versus 2Q 2012

3,535
3,401

SUB

DRT

2,146
925

ENG

DRT

1,229

10.0
10
12.1

530
336

PRS

6.2
7.4

519
506

ENG

PRS
UMB

309
279
119

2012 Aker Solutions

10.2
7.9

7
7.0
8.8

572
560

OMA

SUB

2,567

MMO

WIS

MLS

14.6
14.3

MLS

2,877
2,782

MMO

21.2
19.5

WIS

390

Slide 23

2Q 2013

UMB

2Q 2012

OMA

September 2013

Investor presentation

5
5.0
-3.1
-52.9
-35

10.5

5.1
24.6

Preferred partner

2Q 2013 | Consolidated cashflow, capex and NCOA

Cashflow from operations positive NOK 1.6 billion in the quarter
NCOA of NOK 4.2 billion (Q1 2013: NOK 4.7 billion)
Cashflow from capex was NOK 1.0 billion
Cashflow

Net current operating assets (NCOA)

NOK million

9200

NOK million

1600

1000

1100

100

5000

9600

4000
3000
2000
1000
0

Net debt
1Q 13

Cash from
operations

2013 Aker Solutions

Capex

Dividend Other

Slide 24

Net debt
2Q 13

September 2013

-1000

Investor presentation

1Q
11

2Q
11

3Q
11

4Q
11

1Q
12

2Q
12

3Q
12

4Q
12

1Q
13

Preferred partner

2Q
13

2Q 2013 | Financial position

Net debt of NOK 9.6 billion (1Q 2013: NOK 9.2 billion)
Liquidity buffer of NOK 4.9 billion

Debt maturity profile

LTM EBITDA, NIBD and NIBD/LTM EBITDA

NOK million Note: Revolving credit facility of NOK 6 billion,

drawn approx. NOK 2.2 billion, maturing in 2016

NOK million Note: NIBD and LTM EBITDA as reported.

NIBD

6000

12 000

5000

10 000

4000

8 000

3000

6 000

2000

4 000

1000

2 000

0
2013

2014

2015

2016

2017

2018

2019

0
-2 000

2013 Aker Solutions

Slide 25

September 2013

Investor presentation

NIBD/EBITDA

2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
10 10 10 11 11 11 11 12 12 12 12 13 13

Preferred partner

2,6
2,4
2,2
2
1,8
1,6
1,4
1,2
1
0,8
0,6
0,4
0,2
0
-0,2
-0,4

Shareholder information
Top 10 shareholders
Investor
Aker Kvrner

Shareholders per category [2013]

[27 Aug 2013]

Shares of total

Holding1

110 333 615

40.27 %

Folketrygdfondet

14 286 904

5.21 %

State Street Bank

6 778 690

2.47 %

Goldman Sachs & Co

5 512 097

2.01 %

Clearstream Banking

5 387 471

1.97 %

Danske Bank

5 387 469

1.97 %

RBC Investor Service

5 355 178

1.95 %

The Bank of New York

4 214 810

1.54 %

State Street Bank & Trust

3 925 007

1.43 %

SIX SIS AG

3 745 217

1.37 %

Top 10 investors

164 926 458 60.19 %

Total shares

274 000 000 100.00 %

1Aker

Kvrner Holding AS is a single-purpose company established to

own shares in Aker Solutions and Kvaerner. Aker ASA owns 70 % of
Aker Kvrner Holding AS. The other owner is the Norwegian state (30 %).
See akersolutions.com for more recent statistics.

2013 Aker Solutions

Slide 26

September 2013

Investor presentation

39 %
42 %

19 %

Aker Kvrner Holding AS

Norwegian shareholders
Non-Norwegian shareholders

Preferred partner

Our vision and values

Our vision is to be the preferred partner for solutions in the oil and gas
industry through living our values.

2013 Aker Solutions

Slide 27

September 2013

Investor presentation

Preferred partner

What can you expect from Aker Solutions?

Development and growth

Customer relations
Technology
Performance quality
People

2013 Aker Solutions

Slide 28

Organic expansion
Mergers
Acquisitions
Strategic alliances

September 2013

Investor presentation

Preferred partner

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 form nor
used in any manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall
be altered or removed from any reproduction.

Disclaimer
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,
estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major
markets for Aker Solutions ASA and Aker Solutions ASAs (including subsidiaries and affiliates) lines of business. These expectations,
estimates and projections are generally identifiable by statements containing words such as expects, believes, estimates or similar
expressions. Important factors that could cause actual results to differ materially from those expectations include, among others,
economic and market conditions in the geographic areas and industries that are or will be major markets for Aker Solutions businesses,
oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency
exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Aker Solutions ASA believes
that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will
be achieved or that the actual results will be as set out in the Presentation. Aker Solutions ASA is making no representation or warranty,
expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Aker Solutions ASA nor any of its
directors, officers or employees will have any liability to you or any other persons resulting from your use.
Aker Solutions consists of many legally independent entities, constituting their own separate identities. Aker Solutions is used as the
common brand or trade mark for most of these entities. In this presentation we may sometimes use Aker Solutions, we or us when
we refer to Aker Solutions companies in general or where no useful purpose is served by identifying any particular Aker Solutions
company.

2013 Aker Solutions

Slide 29

September 2013

Investor presentation

Preferred partner