Aker Solutions — Earnings Release 2016

Feb 9, 2017

4Q 16

Fourth-quarter and preliminary annual results 2016

Our most important journey. Aker Solutions has been a key part of Norway's offshore industry since before oil was even found. We delivered the rig that discovered the giant Ekofisk deposit in the North Sea in 1969. That field is still going strong and so are we. Building on 175 years of technological and engineering excellence, our employees in more than 20 countries are now driving development to help solve the world's energy needs safely and sustainably.

4Q Headlines

Key Figures

Order backlog NOK million

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Operating revenue and other income	6,138	7,864	25,557	31,896
EBITDA	380	182	1,929	1,841
EBITDA margin	6.2%	2.3%	7.5%	5.8%
EBITDA ex. special items 1	539	695	2,121	2,638
EBITDA margin ex. special items 1	8.8%	8.9%	8.3%	8.3%
Depreciation, amortization and impairment	(611)	(337)	(1.242)	(882)
EBIT	(232)	(155)	687	958
EBIT margin	(3.8%)	(2.0%)	2.7%	3.0%
EBIT ex. special items1	342	481	1,343	1,918
EBIT margin ex. special items 1	5.6%	6.1%	5.3%	6.0%
Net financial items	(95)	(102)	(354)	(320)
FX on disqualified hedging instruments	(34)	(21)	(59)	46
Net income (loss) before tax	(360)	(278)	273	685
Income tax	92	28	(121)	(302)
Net income (loss) for the period	(268)	(250)	152	383
Basic earnings per share (NOK)	(1.07)	(0.83)	0.21	1.44
Earnings per share ex. special items (NOK)	0.62	0.96	2.23	3.94

1) Excludes special items of NOK 574 million in 4Q 2016 vs NOK 636 million in 4Q 2015. Aker Solutions in 4Q 2016 booked NOK 130 million in restructuring and workforce reduction costs. It also had impairment charges of NOK 414 million on technology and property. The company took a provision of NOK 39 million for onerous leases and booked a total of NOK 9 million in acquisitionrelated transaction fees and IT-system separation costs. A gain of NOK 18 million for non-qualifying hedges was included in EBITDA.

revenue

EBITDA margin

6.2%

EBITDA ex. Special items NOK million 539

EBITDA margin ex. special items

8.8%

EBIT margin

EBIT ex. special items NOK million 342

-3.8%

EBIT margin ex. special ITEMS 5.6%

Order

Order intake NOK billion 4.1

Loss per Share NOK 1.07

aker solutions 5

Key Developments

Income Statement

Aker Solutions' revenue decreased to NOK 6.1 billion in the fourth quarter of 2016 from NOK 7.9 billion a year earlier amid a continued global slowdown in demand for oil services. Steady progress was made on major developments from Africa to Brazil and Norway and the company's cost improvement program proceeded as planned.

The company posted a loss before interest and taxes (EBIT) of NOK 232 million in the quarter, compared with a loss of NOK 155 million in the year-earlier period. The EBIT margin was minus 3.8 percent versus minus 2 percent a year earlier. The earnings were negatively impacted by special items of NOK 574 million, compared with a negative impact of NOK 636 million a year earlier. These included NOK 130 million in costs of reducing capacity and restructuring amid a companywide reorganization aimed at further strengthening operations. The company also booked a provision of NOK 39 million to cover lease costs on vacated office space and NOK 414 million in impairment charges on technology and plant property.

Excluding special items, earnings before interest and taxes were NOK 342 million in the quarter compared with NOK 481 million a year earlier while the EBIT margin was 5.6 percent versus 6.1 percent.

Full-year revenue fell to NOK 25.6 billion in 2016 from NOK 31.9 billion the prior year. EBIT was NOK 687 million compared with NOK 958 million in 2015. The EBIT margin narrowed to 2.7 percent from 3 percent. Excluding special items, EBIT was NOK 1.3 billion in 2016 compared with NOK 1.9 billion a year earlier and the EBIT margin was 5.3 percent versus 6 percent.

The company had a loss before tax of NOK 360 million in the fourth quarter compared with a loss of NOK 278 million a year earlier. It had tax income of NOK 92 million in the quarter. There was a net loss of NOK 268 million in the quarter versus a loss of NOK 250 million a year earlier. This constituted a loss per share of NOK 1.07 compared with NOK 0.83 a year earlier. Excluding special items, the company had net income of NOK 188 million in the quarter versus NOK 236 million a year earlier and earnings per share (EPS) of NOK 0.62 compared with NOK 0.96.

Fluctuations in the fair value of hedging instruments that do not qualify for hedge accounting led to a fourth-quarter unrealized loss of NOK 16 million, consisting of a gain of NOK 18 million in EBITDA and a loss of NOK 34 million in financial items. An unrealized loss of NOK 16 million was booked for the full year, of which a gain of NOK 44 million was included in EBITDA and a loss of NOK 59 million was booked in financial items.

Cashflow

The company had an inflow of cash from operations of NOK 1.5 billion in the fourth quarter compared with NOK 1.6 billion a year earlier. For the year the operating cashflow was NOK 312 million compared with NOK 1.9 billion a year earlier. Net current operating assets were minus NOK 904 million at the end of the quarter compared with minus NOK 1.6 billion a year earlier as the company's favorable working capital position continued to unwind. In the medium term net current operating assets are expected to rise to a more normal level of between 5 to 7 percent of revenue.

Net cash outflow from investing activities increased to NOK 762 million in the quarter

Our global improvement program is on pace to boost cost-efficiency by at least 30 percent

Facts Subsea revenue NOK billion 3.4 Field design revenue NOK billion 2.8

from NOK 392 million a year earlier as the company completed the acquisition of 70 percent of Brazilian C.S.E. Mecânica e Instrumentação Ltda. Cash outflow from financing activities was NOK 522 million in the quarter versus NOK 71 million a year earlier. This was driven by a settlement of some debt in Brazil and an increase in the company's holding in Aker Powergas Private Ltd. in India to 88.8 percent from 68.1 percent. Net outflow of cash from investing was NOK 1.2 billion for the full year of 2016, decreasing from NOK 1.3 billion a year earlier. The outflow from financing activities was NOK 213 million for the year versus NOK 323 million a year ago.

Balance Sheet

Gross interest-bearing debt increased to NOK 4 billion at the end of the year from NOK 3.7 billion a year earlier. Net interest-bearing debt increased to NOK 1 billion from a negative NOK 301 million in the year-ago period. The net interest-bearing debt to EBITDA ratio was 0.7 at the end of 2016. The equity ratio was 29.8 percent at year-end and the ratio of net interest-bearing debt to equity was 15.6 percent.

Liquidity reserves were robust at the end of the year with cash and bank deposits of NOK 2.5 billion. Undrawn and committed long-term revolving bank credit facilities were NOK 5 billion and the total liquidity buffer was NOK 7.5 billion.

Order Intake and Backlog

The order intake was NOK 4.1 billion in the quarter, declining from NOK 6.4 billion a year earlier. This gave a book-to-bill ratio of 0.7 versus 0.8 a year earlier. The backlog was NOK 31.2 billion at the quarters' end compared with NOK 39.7 billion a year ago.

New orders included two contracts worth at least NOK 900 million from DEA Norge to deliver the subsea production system, maintenance and services at the Dvalin natural gas development offshore Norway. The first order is for a production system encompassing a manifold, four subsea trees and a 15-kilometer long umbilical that will connect to the adjacent Heidrun platform. It also covers wellheads, controls, tie-in and workover systems and options for further subsea production tie-back connections to Heidrun. Initial deliveries are slated for the first half of 2018. The companies also agreed on a five-year framework contract for maintenance and servicing of all subsea production systems ordered under the first agreement, including installation and commissioning services. The contract may be extended by three-year periods.

Aker Solutions also secured two framework agreements to provide concept and front-end engineering (FEED) services for BP globally. The first contract is for feasibility and concept engineering and the second is for FEED services covering the full range of upstream developments. Each agreement is for three years with options to extend for two years. The value of the agreements depends on the amount of work requested by BP. Orders will be booked as they are received.

The company secured a contract from Statoil to build the pipeline facilities, modifications and tie-ins needed at the Mongstad terminal to receive oil from the North Sea Johan Sverdrup field. The contract, valued at about NOK 350 million, is for engineering, procurement, construction and installation services. The work will be completed in 2019. Orders also included a contract of about NOK 1 billion in the subsea area. Aker Solutions is not yet in a position to disclose the customer's identity.

The order intake includes new contracts and expansion of existing contracts. The backlog is based on the value of signed contracts and the estimated value of firm periods in framework agreements and service contracts. The estimated value of options is not included.

Operational Developments

Aker Solutions made good progress in the quarter in its push to become an even more streamlined and effective business amid a challenging market. The company moved ahead with a reorganization of its business structure, introducing five delivery centers to better meet

customer needs and generate greater synergies. These centers are Customer Management, Front End, Products, Projects and Services. They replace the existing business area organizations and together reflect the company's workflow from early engagement with customers to project execution and through to lifeof-field services. The new set-up is expected to facilitate a significant lift in the company's standardization efforts and further speed up its global improvement program, #thejourney.

The company in the quarter stayed on pace with #thejourney, which targets an improvement in cost-efficiency of at least 30 percent across the business. Based on 2015 costs and work volumes this equals potential annual savings of at least NOK 9 billion by the end of 2017. Aker Solutions is simplifying its work methods, organizational set-up, geographic footprint and products and services. This is giving leaner and more efficient processes that enable the company to reduce overall costs on projects and products while improving quality. A key focus is to build a culture of continuous improvement.

Aker Solutions in December completed the acquisition of 70 percent of Brazilian C.S.E. Mecânica e Instrumentação Ltda. The purchase gives Aker Solutions access to Brazil's growing market for servicing existing oil and gas fields, building on a strategy to expand the company's services business in key international markets. The agreement includes an option for Aker Solutions to purchase the remaining 30 percent of the company three years after completing the transaction.

We're simplifying how we work and building a culture of continuous improvement

Market Outlook

The outlook for oil services remains challenging. There are some signs of a recovery, primarily in the brownfield segment, and oil prices are seen stabilizing at a higher level in 2017. Industry cost cuts are having an effect, with breakeven costs coming down on projects amid efforts to simplify field architecture and form more effective collaboration models. This is expected to help the industry move forward with new investments and it is anticipated that an increasing number of projects will be sanctioned this year. This is especially true for brownfield projects as the industry seeks to extract additional value from existing assets and infrastructure.

The underlying, long-term outlook remains positive. Declining reserves and lower oil and gas production in many parts of the world are expected to generate a need for investments in developments and increased recovery from existing fields. Aker Solutions is well placed in key regions to provide the capabilities and technology to lower development costs, improve recovery rates and reduce the industry's environmental footprint.

Dividend

The board of directors proposes that no dividend payment be made for 2016. While Aker Solutions had a solid financial position at the end of 2016, the board deems it prudent to exercise caution amid continued uncertainty about the outlook for the oil and gas industry. The company maintains its policy of paying a dividend of between 30 and 50 percent of net profit over time either through cash or share buybacks.

Aker Solutions Share

The company's share price rose to NOK 41.37 at the end of the fourth quarter from NOK 37.38 three months earlier. The average price in the period was NOK 39.54, trading in a range from NOK 43.00 to NOK 34.80. Daily turnover averaged 1,124,747 shares and the company had a market capitalization of NOK 10.1 billion at the end of 2016. The company in the quarter sold 935,510 own shares as part of an employee share purchase program. It held 511,801 own shares at the end of 2016.

Largest Shareholders

Shareholder	Shares	%
Aker Kværner Holding AS	110,333,615	40.6%
Aker ASA	17,331,762	6.4%
Folketrygdfondet	12,331,732	4.5%
State Street Bank and Trust Comp	9,784,222	3.6%
Ferd AS	5,205,203	1.9%
Morgan Stanley & Co. LLC	4,467,768	1.6%
JPMorgan Chase Bank, N.A., London	4,362,441	1.6%
State Street Bank and Trust Comp	3,483,280	1.3%
Verdipapirfondet Alfred Berg Gamba	3,367,184	1.2%
JPMorgan Chase Bank, N.A., London	3,224,752	1.2%
Sum 10 largest	173,891,959	63.9%

Health, Safety, Security and Environment Aker Solutions had 13 recordable injuries in the fourth quarter of 2016, four of which resulted in lost time on operations. The injuries came from handling tools and materials.

The lost-time injury frequency increased to 0.49 in the quarter from 0.39 three months earlier. The frequency of total recordable incidents rose in the same period to 1.6 from 1.56. Both frequencies are based on one million worked hours.

Aker Solutions' top priority is the safety of its employees and the company works continuously to prevent incidents that could harm personnel, material or non-material assets. It investigates all serious incidents, near misses and risk observations to learn from these and improve safety. Aker Solutions also continuously works to identify, analyse and mitigate intentional security threats to personnel and assets. The company did not experience any serious environmental or security incidents in the fourth quarter. It established new health, security and environment management positions to further strengthen its efforts in these areas.

Aker Solutions in the quarter joined the International Association of Oil & Gas Producers, a key voice in promoting safety and sustainability for the global petroleum industry. Aker Solutions becomes only the fourth oil services company to join the group, which serves as a global partner for industry regulators in setting standards for safety, environmental and social performance. The company plans to play an active role in the group's focus areas, sharing its expertise in the arctic and in the subsea segment. It sees IOGP as a valuable forum for collaborating with other industry participants and furthering the company's vision to promote a sustainable oil and gas industry.

Facts Total recordable incidents per million worked hours 1.60 Lost-time incidents per million worked hours 0.49

HSSE Performance Indicators

We secured two framework contracts from BP for concept and front-end engineering services

Subsea

Subsea revenue decreased to NOK 3.4 billion in the quarter from NOK 4.8 billion a year earlier amid a continued market slowdown and as some projects neared completion. The EBIT margin contracted to minus 7.6 percent from 1.5 percent a year earlier, impacted by NOK 391 million in impairment charges on technology and plant property and NOK 31 million in restructuring costs. Excluding special items, the EBIT margin was 4.9 percent in the fourth quarter versus 6.6 percent a year earlier.

The order intake was NOK 2.6 billion, helped by the Dvalin awards and an order from a customer whose identity Aker Solutions is not yet in a position to disclose. The year-earlier intake was NOK 1.3 billion. Tendering activity was healthy even as oil companies reduced investments. The order backlog was NOK 14.5 billion at the end of the quarter, similar to subsea revenue the preceding 12 months. The backlog was NOK 22.5 billion a year earlier.

Full-year revenue was NOK 15 billion in 2016, decreasing from NOK 19.1 billion a year earlier. The EBIT margin narrowed in the same period to 2.3 percent from 5.5 percent. The full-year order intake was NOK 7.3 billion compared with NOK 7.7 billion a year earlier.

Field Design

Revenue in Field Design, which consists of MMO and Engineering, decreased to NOK 2.8 billion in the quarter from NOK 3.2 billion a year earlier. The decline was mainly in MMO, where some larger projects neared completion and volumes were small from projects in their start-up phase. The EBIT margin widened to 6.2 percent in the quarter from minus 1.6 percent a year earlier, helped by good project execution, improved activity levels in MMO and high capacity utilization in Engineering. The margin was negatively impacted by NOK 29 million in restructuring costs and positively impacted by the reversal of NOK 26 million in onerous lease provisions. Excluding special items, the margin was 7.2 percent in the quarter versus 6.4 percent a year earlier.

The order intake was NOK 1.5 billion, helped by new MMO contracts in Norway. The yearearlier intake was NOK 5.1 billion. Tendering activity was strong in the period.

The order backlog was NOK 16.7 billion at the end of the quarter, equal to Field Design's revenue the preceding 18 months. The backlog was NOK 17.2 billion a year earlier.

Facts Subsea backlog NOK billion 14.5 Field Design backlog NOK billion 16.7

Full-year revenue was NOK 10.7 billion in 2016 compared with NOK 12.9 billion a year earlier. The EBIT margin increased in the same period to 5.4 percent from 3.1 percent. The order intake was NOK 9.8 billion versus NOK 15.3 billion a year earlier.

Risk Factors

The market situation and current outlook for the oil-services industry is considered challenging. Aker Solutions is exposed to various forms of market, operational and financial risks that could affect performance, the ability to meet strategic goals and the company's reputation.

Financial results are affected by project execution, customer behavior and market developments, including fluctuations in energy prices. Results are also impacted by costs, both the company's own and those charged by suppliers, as well as customers' ability to pay. Aker Solutions is through its business activities exposed to legal, regulatory and political risks, such as decisions on environmental regulation and international sanctions that impact supply and demand, as well as risks associated with unethical and criminal behavior. The company is exposed to financial market risks including changes in currency rates, interest rates, tax, credit and counterparty risks, as well as risks associated with access to and terms of financing.

Market developments may lead to further capacity adjustments and changes in the valuation of the company's assets and liabilities. This includes further restructuring obligations, onerous leases, impairments and increased credit risk impacting the valuation of trade and interest-bearing receivables.

Aker Solutions has companywide policies, procedures and tools that identify, evaluate and respond to risks actively and systematically. The annual report for 2015 provides more information on risks and uncertainties.

Significant Events After Quarter's End

Aker Solutions in January 2017 won a contract from Statoil for the hook-up of the riser platform for the Johan Sverdrup field offshore Norway. Aker Solutions will work closely with subcontractor Kvaerner on joining together the platform's seven modules, which will be transported to Norway in the second quarter of 2018. The scope also covers planning, management and prefabrication. The contract value is approximately NOK 900 million and will be split about equally between Aker Solutions and Kvaerner, with Aker Solutions' share

SUBSEA

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Operating revenue	3,368	4,752	14,996	19,101
EBITDA	296	352	1,417	1,778
EBITDA margin	8.8%	7.4%	9.5 %	9.3 %
EBITDA ex. special items	32.7	486	1,425	1,944
EBITDA margin ex. special items	9.7%	10.2%	9.5%	10.2%
EBIT	(257)	70	352	1,045
EBIT margin	(7.6%)	1.5%	2.3 %	5.5 %
EBIT ex. special items	166	312	800	1,357
EBIT margin ex. special items	4.9%	6.6%	5.3%	7.1%
NCOA	561	(472)	561	(472)
Net capital employed	6,388	4,702	6,388	4,702
Order intake	2,583	1,343	7,283	7,660
Order backlog	14,500	22,476	14,500	22,476
Employees	5,407	7,449	5,407	7,449

FIELD DESIGN

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Operating revenue	2,777	3,170	10,670	12,920
EBITDA	225	(1)	730	543
EBITDA margin	8.1%	0.0%	6.8 %	4.2 %
EBITDA ex. special items	228	238	795	793
EBITDA margin ex. special items	8.2%	7.5%	7.4%	6.1%
EBIT	173	(50)	580	404
EBIT margin	6.2%	(1.6%)	5.4 %	3.1 %
EBIT ex. special items	199	204	667	672
EBIT margin ex. special items	7.2%	6.4%	6.2%	5.2%
NCOA	(937)	(861)	(937)	(861)
Net capital employed	(352)	(362)	(352)	(362)
Order intake	1,517	5,118	9,831	15,263
Order backlog	16,711	17,235	16,711	17,235
Employees	8,664	7,772	8,664	7,772

booked in first-quarter orders. The agreement also contains hook-up options for the field's processing and living quarter platforms.

Aker Solutions in January began to implement a process to reduce the company's workforce capacity at some locations. About 650 positions, mainly in Norway, the UK and India, may be affected. The adjustments are being made because of the continued market slowdown and as part of the global reorganization started in November to strengthen the company's competitiveness. The company is vigilant about ensuring that its capacity is adapted to market conditions, while safeguarding competency.

Fornebu, February 8, 2017 The Board of Directors and CEO of Aker Solutions ASA

Figures and Notes. We seek to maximize returns by striving for top and bottom line excellence.

Income Statement

Condensed consolidated income statement

NOK million. Unaudited.	Note	4Q 2016	4Q 2015	2016	2015
Revenue	4	6,138	7,864	25,557	31,896
Operating expenses	7	(5,759)	(7,682)	(23,628)	(30,055)
Operating income before depreciation, amortization and impairment	4	380	182	1,929	1,841
Depreciation, amortization and impairment	8, 9	(611)	(337)	(1,242)	(882)
Operating income	4	(232)	(155)	687	958
Net financial items	5	(128)	(123)	(414)	(273)
Income before tax		(360)	(278)	273	685
Income tax		92	28	(121)	(302)
Net income for the period		(268)	(250)	152	383
Net income attributable to:
Equity holders of the parent company		(289)	(225)	57	392
Non-controlling interests		21	(25)	95	(8)
Earnings per share in NOK (basic and diluted)	11	(1.07)	(0.83)	0.21	1.44

Other Comprenhensive Income (OCI)

Condensed consolidated statement of comprehensive income

NOK million. Unaudited.	4Q 2016	4Q 2015	2016	2015
Net income for the period	(268)	(250)	152	383
Other comprehensive income:
Items that are or may be reclassified subsequently to profit or loss:
Cashflow hedges, effective portion of changes in fair value	(41)	(312)	(81)	(1,385)
Cashflow hedges, reclassification to income statement	143	379	982	1,135
Cashflow hedges, deferred tax	(38)	(46)	(232)	39
Translation differences - foreign operations	212	208	(852)	907
Total	276	229	(183)	696
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plans	38	79	38	79
Remeasurements of defined benefit pension plans, deferred tax	(9)	(21)	(9)	(21)
Other changes	28	-	42	-
Total	56	58	70	58
Other comprehensive income, net of tax	63	37	38	1,137
Total comprehensive income attributable to:
Equity holders of the parent company	33	56	(46)	1,119
Non-controlling interests	31	(19)	84	17

The subtotals and totals in some of the tables may not equal the sum of the amounts shown due to rounding.

Balance Sheet

Condensed consolidated balance sheet

		December 31,	December 31,
NOK million. Unaudited.	Note	2016	2015
Property, plant and equipment	9	3,808	3,962
Intangible assets	8	5,631	6,207
Deferred tax asset		666	332
Other investments	16	75	13
Other non-current assets		90	23
Total non-current assets		10,271	10,537
Current tax assets		242	118
Current operating assets	6, 13	7,973	11,799
Derivative financial instruments	12	93	1,295
Interest-bearing receivables		437	117
Cash and cash equivalents		2,480	3,862
Total current assets		11,226	17,192
Total assets		21,497	27,729
Total equity attributable to the parent	11	6,278	6,397
Non-controlling interests	11	138	234
Total equity		6,415	6,630
Non-current borrowings	10, 12	1,844	3,137
Pension obligations		540	572
Deferred tax liabilities		309	283
Other non-current liabilities		92	27
Total non-current liabilities		2,784	4,018
Current tax liabilities		30	9
Current borrowings	10, 12, 13	2,110	561
Current operating liabilities	6, 7	9,089	13,516
Derivative financial instruments	12	1,069	2,995
Total current liabilities		12,297	17,081
Total liabilities and equity		21,497	27,729

Cashflow

Condensed consolidated statement of cashflow

NOK million. Unaudited.	Note	2016	2015
Income before tax		273	685
Depreciation, amortization and impairment	8, 9	1,242	882
Other cashflow from operating activities		(1,204)	366
Net cashflow from operating activities		312	1,934
Acquisition of property, plant and equipment	9	(329)	(841)
Payments for capitalized development	8	(297)	(449)
Acquisition of subsidiary, net of cash acquired	14	(210)	-
Change in current interest-bearing receivables		(351)	-
Other cashflow from investing activities		1	(9)
Net cashflow from investing activities		(1,186)	(1,299)
Change in external borrowings	10	29	98
Paid dividends 1	11	(34)	(394)
Acquisition of non-controlling interests		(207)	-
Other financing activities		(2)	(26)
Net cashflow from financing activities		(213)	(323)
Effect of exchange rate changes on cash and cash equivalents		(294)	211
Net increase (decrease) in cash and cash equivalents		(1,382)	523
Cash and cash equivalents as at the beginning of the period		3,862	3,339
Cash and cash equivalents as at the end of the period		2,480	3,862

1) Dividends in 2016 of NOK 34 million relates to dividend to non-controlling interests. Dividend in 2015 relates to shareholders of Aker Solutions ASA

Equity

Condensed consolidated statement of changes in equity

	Contributed equity		Total equity attributable to the
	and retained		parent's equity	Non- controlling
NOK million. Unaudited.	earnings	Other reserves	holders	interest	Total Equity
Equity as of January 1, 2015	5,684	(7)	5,677	216	5,893
Total comprehensive income	392	728	1,119	17	1,137
Dividends	(394)	-	(394)	-	(394)
Treasury shares and employee share purchase program	(6)		(6)		(6)
Equity as of December 31, 2015	5,676	721	6,397	234	6,630
Equity as of January 1, 2016	5,676	721	6,397	234	6,630
Total comprehensive income	57	(103)	(46)	84	38
Change in non-controlling interest from dividends incl. tax				(34)	(34)
Change in non-controlling interest including tax as a result
of share buy-back	(17)		(17)	(184)	(202)
Other changes to equity	(55)		(55)	38	(17)
Equity as of December 31, 2016	5,660	618	6,278	138	6,415

Notes

Note 1 General

Aker Solutions (the company) is an oil service company providing subsea technologies and field design services including engineering, modification, maintenance and decommissioning services. The group employs about 14,000 people with operations in about 20 countries worldwide, with head office based in Fornebu, Norway. The company has acquired a new subsidiary during 4Q, see note 14.

The parent company, Aker Solutions ASA, is a Norwegian limited liability company listed on the Oslo Stock Exchange under the ticker AKSO. The consolidated financial statements of Aker Solutions ASA incorporate the financial statements of the company and its subsidiaries (collectively referred to as "the group" or "the company" and separately as group companies) and the group's interest in associated companies. The Resource Group TRG AS is the ultimate parent company of Aker Solutions ASA. The interim financial statements are unaudited.

Note 2 Basis for Preparation

Statement of compliance

Aker Solutions' interim financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as approved by the European Union, and their interpretations adopted by the International Accounting Standards Board (IASB). The condensed consolidated interim financial statements are prepared in accordance with IAS 34 Interim Financial Reporting.

Changes in accounting policies and new standards

No significant new accounting principles have been adopted in the quarter. The IASB has issued three new standards that are expected to impact the financial reporting of the group in the future. The expected impacts as described below may change as clarifications are issued by the IASB or as practice develops in the industry.

IFRS 9 Financial instruments will be effective from 2018. The percentage of qualifying hedges is expected to increase under IFRS 9. This is expected to result in less foreign currency effects reported under financial items. The current assessment is that the new standard for financial instruments will not significantly change the reported figures of the group.

IFRS 15 Revenue from contracts with customers will be effective from 2018. The progress-based measurement of revenue over time is still expected to be the main method for the construction and service contracts in Aker Solutions. Tender cost is expected to be mainly expensed as incurred under the new standard. The current assessment is that the new standard for revenue recognition will not significantly change how the group recognizes revenue.

IFRS 16 Leasing will be effective from 2019. The new standard for leasing will significantly change how the group accounts for its lease contracts for land and buildings currently accounted for as operating leases. Under IFRS 16, an on-balance sheet model similar to the current financial leases accounting will be applied to all lease contracts. Only leases for small items such as computers and office equipment will be exempt. As a result, assets and liabilities will increase with a value close to the net present value of future lease payments and EBITDA will increase as the lease payments will be presented as depreciation and finance cost rather than operating expenses.

Note 3 Judgments and Estimates

The preparation of consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions each reporting period that affect the income statement and balance sheet. The accounting estimates will by definition seldom precisely match actual results. The judgments and estimates are based on historical experience or other factors, including expectations of future events that are believed to be reasonable under the circumstances. Changes to accounting estimates are recognized in the period in which the estimate is revised and any subsequent periods the change relates to.

In preparing these interim financial statements, the significant judgments made by management in applying the group's accounting policies and the key sources of uncertainty in the estimates were consistent with those described in note 2 Basis of Preparation in the 2015 annual report available on www.akersolutions.com.

Note 4 Operating Segments

Aker Solutions has two operating segments. Subsea provides production equipment and maintenance services to the subsea market. Field Design provides offshore engineering and maintenance services in addition to modifications. In 4Q 2016, the company is undergoing a major restructuring that will change the operating segments. The new structure will be reflected in the reporting in 2017.

Subsea

Subsea offerings cover all phases of the life of subsea fields, from concept screening and design through manufacturing, installation and commissioning to operational support and maintenance services. Aker Solutions delivers both single subsea equipment and complete subsea systems. The hardware deliveries are organized as projects and include engineering, procurement and construction (EPC) and often also installation and commissioning. The subsea systems include hardware such as subsea trees, control systems, workover systems, tie-in and connection systems, manifolds, umbilicals, power cables and compression systems. The market for advanced and integrated subsea production system is continuously developing and combines hardware, subsea processing and the management of reservoir performance into a full field concept. Lifecycle services on subsea installations include maintenance, repairs and spares supply in addition to operational and technical support.

Field Design

Field Design provides engineering services on greenfield and brownfield developments in addition to maintenance and modification services for oil and gas fields. The engineering services include concept studies, front-end engineering and design (FEED), field planning, detailed engineering, procurement services and construction management services. The maintenance and modifications,services include maintenance, modifications, asset integrity management (AIM) and hook-up services. This operating segment includes two business areas in Aker Solutions that are organized separately and provide individual management reporting to the CEO. The business areas of Engineering ("ENG") and Maintenance, Modifications and Operations ("MMO") are aggregated into the Field Design segment due to similar commercial risks and operations in the same economic climate with the same markets and customers. They also have similar operational characteristics as they share resources and use the same type of KPI's to monitor the business.

Other

The "other" segment includes unallocated corporate costs, certain onerous lease cost and the effect of hedges not qualifying for hedge accounting.

Accounting principles

The accounting principles of the operating segments are the same as described in the annual report. As noted in the annual report, the operating segments apply hedge accounting independently of whether the hedge qualifies for hedge accounting in accordance with IFRS. When contract revenues and contract costs are denominated in a foreign currency, the subsidiary hedges the exposure against corporate treasury. A correction of the non-qualifying hedges are made to secure that the consolidated financial statements are in accordance with IFRS. This means that the group's segment report reflects both internal and external hedges before they are corrected through the corporate level and reported in the "other" segment.

	Total operating					Intra-group
Amounts in NOK million	Subsea	Field Design	segments	Other	elimination	Total
Three month ended December 31, 2016
Income statement
External revenue	3,366	2,752	6,118	21		6,138
Inter-segment revenue	2	25	27	4	(31)	-
Total operating revenue	3,368	2,777	6,145	25	(31)	6,138
Operating income before depreciation, amortization and impairment	296	225	521	(141)		380
Operating income	(257)	173	(84)	(148)		(232)
Twelve month ended December 31, 2016
Income statement
External revenue and other income	14,995	10,576	25,571	(14)		25,557
Inter-segment revenue	1	95	96	102	(198)	-
Total operating revenue and other income	14,996	10,670	25,667	88	(198)	25,557
Operating profit before depreciation, amortization and
impairment	1,417	730	2,148	(219)		1,929
Operating income	352	580	931	(245)		687
Balance sheet
Net current operating assets (NCOA)	561	(937)	(376)	(528)	-	(904)
Net capital employed	6,388	(352)	6,036	2,357	-	8,393
Three month ended December 31, 2015
Income statement
External revenue	4,756	3,072	7,827	36		7,864
Inter-segment revenue	(4)	99	95	43	(137)	-
Total operating revenue	4,752	3,170	7,922	79	(137)	7,864
Operating income before depreciation, amortization and
impairment	352	(1)	351	(169)		182
Operating income	70	(50)	20	(175)		(155)
Twelve month ended December 31, 2015
Income statement
External revenue and other income	19,112	12,612	31,724	172		31,896
Inter-segment revenue	(12)	308	297	102	(398)	-
Total operating revenue and other income	19,101	12,920	32,021	273	(398)	31,896
Operating profit before depreciation, amortization and
impairment	1,778	543	2,321	(480)		1,841
Operating income	1,045	404	1,449	(490)		958
Balance sheet
Net current operating assets (NCOA)	(472)	(861)	(1,332)	(275)	-	(1,607)
Net capital employed	4,702	(362)	4,339	3,689	-	8,029

The NCOA consists of current operating assets, current tax assets, current operating liabilities and current tax liabilities.

Net capital employed consist of mainly of NCOA, pension liabilities, deferred taxes, fixed assets, intangible assets and an allocated share of goodwill.

Note 5 Finance Income and Expenses

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Interest income	25	18	65	76
Interest expense on financial liabilities measured at amortized cost	(125)	(102)	(452)	(330)
Interest expense on financial liabilities measured at fair value	(3)	(15)	(26)	(18)
Interest expenses	(128)	(117)	(477)	(348)
Capitalized interest cost	1	17	24	40
Net foreign exchange gain (loss)	12	(46)	26	(115)
Gain (loss) on foreign currency forward contracts	(42)	(21)	(67)	46
Other financial income	7	28	25	30
Other financial expenses	(4)	(2)	(9)	(3)
Net other financial items	(25)	(24)	(1)	(1)
Net financial items	(128)	(123)	(414)	(273)

Note 6 Current Operating Assets and Liabilities

Amounts in NOK million	December 31, 2016	December 31, 2015
Current operating assets
Inventories	575	814
Trade receivables	3,541	4,264
Amounts due from customers for construction work	1,103	2,365
Accrued operating revenue from service contracts	1,337	2,032
Advances to suppliers	156	232
Other receivables	1,260	2,091
Total	7,973	11,799
Current operating liabilities

Total	9,089	13,516
Other liabilities	2,279	2,124
Provisions	1,087	1,294
Accrued operating and financial cost	2,183	2,435
Amounts due to customers for construction work, including advances	2,509	5,995
Trade payables	1,030	1,669

Note 7 Provisions

Changes in provisions in 2016

Amounts in NOK million	Warranties	Restructuring	Onerous contracts	Other	Total
Balance as of January 1, 2016	591	262	323	118	1,294
Change in the period	10	(150)	(47)	23	(165)
Currency translation	(27)	-	(9)	(7)	(43)
Balance as of December 31, 2016	573	112	267	134	1,086

The provision for warranties relate to expected re-work and improvements for products and services delivered to customers in the normal course of business. The warranty period is normally two years. The provision is based on the historical average warranty expenses for each type of contract and an assessment of the value of delivered products and services currently in the warranty period.

The restructuring provision relates to expected employee termination costs for permanent and temporary employees that will be laid-off during first half 2017. The significant decline in oil prices and current market conditions has resulted in lower order intake, pressure on cost and necessary workforce reductions. At 4Q 2016, the provision was NOK 17 million in Subsea, NOK 51 million in Field Design and NOK 44 million in the "other" segment. The restructuring cost in the quarter was NOK 130 million. The provision is sensitive to changes in the assumptions used related to number of employees, salary levels, notice period, severance pay and idle time assumed during notice period.

The onerous lease provision mainly relates to separable parts of leased buildings which have been or will be vacated by Aker Solutions in the near future. At 4Q 2016, the provision consists of NOK 53 million included in Subsea, NOK 87 million in Field Design and NOK 127 million in the "other" segment. The onerous lease cost in the quarter was NOK 39 million. The provision is sensitive to changes in the assumptions used related to sublease periods and sublease income.

Other provisions relate to other liabilities with uncertain timing or amount.

Note 8 Intangible Assets

Changes in intangible assets in 2016

			Other intangible
Amounts in NOK million	Goodwill	Development	assets	Total
Balance as of January 1, 2016	4,171	1,841	195	6,207
Capitalized development	-	278	19	297
Acquisition through business combinations	126	-	12	139
Disposal of subisidaries	(2)	-	-	(2)
Amortization	-	(178)	(34)	(212)
Impairment	-	(386)	-	(386)
Currency translation differences	(319)	(91)	(2)	(412)
Balance as of December 31, 2016	3,977	1,465	190	5,631

Intangible assets are reviewed each quarter for impairment indicators, including market changes, technological development, order backlog and other changes that might potentially reduce the value of the assets. For goodwill and ongoing development projects, an impairment test is performed annually or when impairment indicators are identified. The goodwill is tested using the value-in-use approach determined by discounting expected future cashflows. An impairment loss is recognized when the valuein-use is lower than book value.

An impairment loss of capitalized development of NOK 386 million has been recognized in 2016, compared to NOK 136 million in the prior year. The impairment loss relates to technologies where the market outlook has worsened as a result of the downturn in the oil services sector. A value-in-use approach has been used with a WACC of 10.7 percent (post-tax). The remaining book value of the capitalized development subject to impairment was NOK 200 million per December 31, 2016. The impairment relate to NOK 363 million in Subsea and NOK 23 million in Field Design. The impairment loss in the quarter was NOK 325 million in Subsea and NOK 23 million in Field Design.

Note 9 Property, Plant and Equipment

Changes in property, plant and equipment in 2016

Amounts in NOK million	Buildings and sites	Machinery and equipment	Under construction	Total
Balance as of January 1, 2016	1,005	2,160	797	3,962
Additions	48	60	292	399
Transfer from assets under construction	635	294	(929)	-
Depreciation	(83)	(483)	-	(567)
Impairment	-	(78)	-	(79)
Additions through business combinations	24	55	-	78
Disposal of subsidiaries	-	(3)	-	(3)
Disposals and scrapping	(24)	(4)	-	(28)
Currency translation differences	29	(26)	40	44
Balance as of December 31, 2016	1,633	1,974	200	3,808

An impairment of fixed assets of NOK 79 million in Subsea has been recognized in 2016, of which NOK 67 million relate to 4Q. The impairment loss in the prior year was NOK 27 million.

Note 10 Borrowings

Carrying amounts in NOK million	Maturity	December 31, 2016	December 31, 2015
Bond - ISIN NO 0010647431	June 2017	1,505	1,502
Bond - ISIN NO 0010661051	October 2019	1,007	1,005
Brazilian Development Bank EXIM and capex loans	Within one year	561	432
Brazilian Development Bank EXIM and capex loans	After one year	867	737
Other loans		14	21
Total borrowings		3,954	3,698
Current borrowings		2,110	561
Non-current borrowings		1,844	3,137
Total borrowings		3,954	3,698

Contractual terms of group's interest-bearing loans and borrowings are measured at amortized cost. Aker Solutions has a credit facility of NOK 5,000 million which expires July 3, 2019. Nothing was drawn of the credit facility per December 31, 2016.

Note 11 Share Capital and Equity

Aker Solutions ASA was founded May 23, 2014 with a nominal share capital of NOK 293,807,940. The total outstanding shares are 272,044,389 shares at par value NOK 1.08 per share at December 31, 2016. All issued shares are fully paid.

Aker Solutions ASA holds 511,801 treasury shares at December 31, 2016. Treasury shares are not included in the weighted average number of ordinary shares. Earnings per share have been calculated based on an average of 270,916,252 shares outstanding December 31, 2016.

The board of directors proposes that no dividend payment be made for 2016 due to the continued uncertainty about the outlook for the oil and gas industry.

Note 12 Financial Instruments

The financial instruments measured at fair value per December 31, 2016 include the following:

• n Derivative financial instruments consist mainly of forward foreign exchange contracts. The fair values are derived from observable market rates for foreign currency forward contracts. The group also has certain interest rate swaps where fair values are derived from observable market interest rates.
• n Current and non-current borrowings include two bonds issued in the Norwegian bond market in addition to other borrowings. Bonds and borrowings are measured at amortized cost, and interest rate variations will not affect the valuation as they are held to maturity. The fair value of bonds and borrowings was NOK 3,979 million per December 31, 2016, compared to carrying amount of NOK 3,954 million. The fair value per December 31, 2015 was NOK 3,651 million compared to carrying amount of NOK 3,698 million.

Other financial assets and liabilities are measured at fair value and their valuation techniques are described in note 25 in the 2015 annual report, and note 16 in this report.

Note 13 Related Parties

Related party relationships are defined to be entities outside the Aker Solutions group that are under control (either directly or indirectly), joint control or significant influence by the owners of Aker Solutions. Related parties are in a position to enter into transactions with the company that would potentially not be undertaken between unrelated parties. All transactions in the Aker Solutions group with related parties have been based on arm's length terms.

The largest shareholder of Aker Solutions is Aker Kværner Holding AS which is controlled by Aker ASA (70 percent). Aker ASA is controlled by The Resource Group TRG AS, a company controlled by Kjell Inge Røkke. The Resource Group TRG AS is the ultimate parent company of Aker Solutions ASA. In this respect, all entities owned by Aker ASA and entities which Kjell Inge Røkke and his close family controls through The Resource Group TRG AS are considered related parties to Aker Solutions. These entities include companies like Akastor ASA, Kværner ASA and Ocean Yield ASA and are referred to as Aker entities in this note.

Below is a summary of transactions and balances between Aker Solutions group and its related parties.

Income statement

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Operating revenues	259	237	770	1,372
Operating expenses	(582)	(918)	(2,661)	(4,067)

Balance sheet

Amounts in NOK million	December 31, 2016	December 31, 2015
Trade receivables	111	121
Trade payables	67	153
Current borrowings	1	1

Aker Solutions has several transactions with related parties on a recurring basis as part of normal business. The most important transactions with related parties are commercial sub-contracting and hire of technical and project personnel between Aker Solutions, Akastor and Kvaerner. Aker Solutions is also leasing property from related parties.

Aker Solutions entered into a five-year contract with Frontica Business Solutions (part of Akastor) in 1Q 2016 for IT services and consultancy projects as well as business support services within HR, finance and procurement. The contract value is about NOK 1-1.25 billion annually. Frontica Business Solutions was sold to Cognizant on November 28, 2016 and is no longer a related party to Aker Solutions after this date. Akastor is also providing staffing services with an estimated value up to NOK 1 billion annually (depending on volume) through Frontica Advantage. On January 6, 2017 Frontica Advantage was sold to NES Global Talent and is no longer a related party to Aker Solutions.

In 3Q 2016, Aker Solutions entered into a seven year agreement to sublease offices to Aker BP in Stavanger, Norway.

Note 14 Acquisition of Subsidiaries

On October 20 2016, Aker Solutions entered into an agreement to acquire 70 percent of shares and voting rights of Brazilian C.S.E Mecânica e Instrumentacâo Ltda ("C.S.E"). The acquisition gives Aker Solutions access to Brazil's growing market for servicing existing oil and gas fields. C.S.E had revenue of BRL 322 million in 2015 and provides maintenance, assembly, commissioning and crane operation services at offshore and onshore facilities. The company headquartered in Pinhais in the Parana state has 2,500 employees located at sites including five service facilities covering the country's different oil and gas basins.

Aker Solutions has a call option for the remaining 30 percent shares executable in 2019 while the sellers have a put option for the remaining 30 percent shares exercisable in 2021. The amount payable upon exercising the options is based on future profits. Aker Solutions has applied the anticipated-acquisition method when accounting for the business combination and treated the transaction as the options were already exercised. As such C.S.E has been fully consolidated from the date of the closing of the transaction which occured on December 5, 2016.

The cost price of the acquisition includes the present value of the contingent consideration at the time of the business combination of NOK 75 million. Transaction costs related to the acquisition of NOK 7 million has been recognised in other operating expenses in the income statement. Goodwill resulting from the transaction is mainly attributable to the assembled workforce and expected synergies. The purchase price allocation presented at the time of this report is preliminary.

Values at time of acquisition for the business combination

Amounts in NOK million

Property, plant and equipment	78
Intangible assets	13
Trade receivables	82
Other current operating assets	103
Cash and cash equivalents	11
Deferred tax liabilities	(2)
Current operating liabilities	(114)
Non-current liabilities	(1)
Net assets acquired at fair value	170
Goodwill	126
Fair value acquired	296
Total consideration	296
Contingent consideration (option payment component)	(75)
Net cash consideration	221
Cash and cash equivalents acquired	(11)
Net cash outflow	210
Operating revenue in acquired subsidiary after acquisition	44
Proftit for the period in acquired subsidiaries after acquisition	(2)

The trade receivables are estimated to have a fair value equal to their gross carrying amount and hence no provision has been made for uncollectable receivables.

The information disclosed in the table is preliminary and may be revised if new information related to the fair value of acquired assets and liabilities becomes available within one year of the acquisition date.

Note 15 Acquisition of Non-controlling Interest

In October 2016, Aker Solutions increased its ownership in Aker Powergas Pvt Ltd by 20.8 percent from 68.1 percent to 88.9 percent. The increase was structured through a treasury-share buy-back in Aker Powergas Pvt Ltd from its minority owners with subsequent deletion of the treasury shares.

The carrying amount of Aker Powergas Pvt Ltd net assets in the consolidated financial statements on the date of the acquisition was NOK 788 million. As a result of the acquisition, a decrease in non-controlling interest within equity of NOK 184 million and a decrease in retained earnings of NOK 17 million was recognized in the consolidated financial statements. Amounts include taxes incurred as a result of the transaction.

Amounts in NOK million Carrying amount of the NCI acquired 184 Consideration paid to NCI (165) Tax payable on buyback of shares from NCI (38) Gross decrease in equity (19) Gross decrease in majority's equity (17) Gross decrease in remaining non-controlling interest (2)

Note 16 Other Investments

Amounts in NOK million	December 31, 2016	December 31, 2015
Equity securities, measured at cost	14	13
Equity securities, measured at fair value	61	-
Balance as of December 31, 2016	75	13

Other investments include equity securities where shareholding is below twenty percent. Quoted market prices on stock exchanges are used to value investment in listed companies, with changes recognized in other comprehensive income (OCI) in equity. Investment in shares that do not have quoted market prices are measured at cost.

as EBITDA or EBIT divided by revenue.

Alternative Performance Measures

Aker Solutions (the company) discloses alternative performance measures as a supplement to the financial statements prepared in accordance with IFRS. Such performance measures are frequently used by securities analysts, investors and other interested parties and they are meant to provide an enhanced insight into the operations, financing and future prospects of the company.

Profit measures

EBITDA and EBIT terms are presented as they are commonly used by financial analysts and investors. Special items are excluded from EBITDA and EBIT as alternative measures to provide enhanced insight into the financial development of the business operations and to improve comparability between different periods.

EBITDA is short for earnings before interest, taxes, depreciation and amortization. EBITDA corresponds to the "operating income before depreciation, amortization and impairment" in the consolidated income statement.

EBIT is short for earnings before interest and taxes. EBIT corresponds to "operating income" in the consolidated income statement.

Margins such as EBITDA margin and EBIT margin is used to compare relative profit between periods. EBITDA margin and EBIT margin are calculated

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Revenue	6,138	7,864	25,557	31,896
Operating expenses	(5,759)	(7,682)	(23,628)	(30,055)
EBITDA	380	182	1,929	1,841
EBITDA margin	6.2 %	2.3 %	7.5 %	5.8 %
Depreciation, amortization and impairment	(611)	(337)	(1,242)	(882)
EBIT	(232)	(155)	687	958
EBIT margin	-3.8 %	-2.0 %	2.7 %	3.0 %

Special items may not be indicative of the ongoing operating result or cash flows of the company. Profit measures excluding special items are presented as alternative measure to improve comparability of the underlying business performance between the periods.

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Special items impacting revenue
Aker Solutions group
Revenue	6,138	7,864	25,557	31,896
Non-qualifying hedges	(19)	(30)	26	(123)
Gain/loss sale of PPE	-	-	(36)	-
Other	-	-	12	-
Sum of special items excluded from revenue	(19)	(30)	2	(123)
Revenue ex. special items	6,119	7,834	25,559	31,772
Subsea Revenue	3,368	4,752	14,996	19,101
Gain/loss sale of PPE	-	-	(36)	-
Other	-	-	12	-
Sum of special items excluded from revenue	-	-	(24)	-
Revenue ex. special items	3,368	4,752	14,972	19,101
Field Design
Revenue	2,777	3,170	10,670	12,920
Sum of special items excluded from revenue	-	-	-	-
Revenue ex. special items	2,777	3,170	10,670	12,920

Special items
(continued)

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Special items impacting EBITDA
Aker Solutions group
EBITDA	380	182	1,929	1,841
Onerous lease cost	39	114	82	265
Restructuring cost	130	373	163	416
Non-qualifying hedges	(18)	15	(44)	94
Gain/loss sale of PPE	-	-	(36)	-
Other costs	9	11	26	22
Sum of special items excluded from EBITDA	160	513	192	797
EBITDA ex. special items	539	695	2,121	2,638
EBITDA margin ex. special items	8.8%	8.9%	8.3%	8.3%
Subsea
EBITDA	296	352	1,417	1,778
Restructuring cost	31	134	31	166
Gain/loss sale of PPE	-	-	(36)	-
Other costs	-	-	12	-
Sum of special items excluded from EBITDA	31	134	7	166
EBITDA ex. special items	327	486	1,425	1,944
EBITDA margin ex. special items	9.7%	10.2%	9.5%	10.2%
Field Design
EBITDA	225	(1)	730	543
Onerous lease cost	(26)	-	2	-
Restructuring cost	29	239	62	250
Sum of special items excluded from EBITDA	3	239	64	250
EBITDA ex. special items	228	238	795	793
EBITDA margin ex. special items	8.2%	7.5%	7.4%	6.1%
Special items impacting EBIT
Aker Solutions group
EBIT	(232)	(155)	687	958
Sum of special items excluded from EBITDA	160	513	192	797
Impairment	414	123	464	163
Sum of special items excluded from EBIT	574	636	656	960
EBIT ex. special items	342	481	1,343	1,918
EBIT margin ex. special items	5.6%	6.1%	5.3%	6.0%
Subsea
EBIT	(257)	70	352	1,045
Sum of special items excluded from EBITDA	31	134	7	166
Impairment	391	108	441	145
Sum of special items excluded from EBIT	422	242	449	312
EBIT ex. special items	166	312	800	1,357
EBIT margin ex. special items	4.9%	6.6%	5.3%	7.1%
Field Design
EBIT	173	(50)	580	404
Sum of special items excluded from EBITDA	3	239	64	250
Impairment	23	15	23	18
Sum of special items excluded from EBIT	26	254	87	268
EBIT ex. special items	199	204	667	672
EBIT margin ex. special items	7.2%	6.4%	6.2%	5.2%

Fourth-quarter and preliminary annual results 2016 | Figures and notes

Special items (continued)

Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
Special items impacting EBT
Aker Solutions group
EBT	(360)	(278)	273	685
Sum of special items excluded from EBIT	574	636	656	960
Non-qualifying hedges	34	21	59	(47)
Sum of special items excluded from EBT	607	657	716	913
EBT ex. special items	247	379	989	1,598
Subsea
EBT	165	(50)	330	558
Sum of special items excluded from EBIT	422	242	449	312
Sum of special items excluded from EBT	422	242	449	312
EBT ex. special items	588	192	779	869
Field Design
EBT	49	(62)	373	416
Sum of special items excluded from EBIT	26	254	87	268
Sum of special items excluded from EBT	26	254	87	268
EBT ex. special items	75	191	460	684
Special items impacting Net income
Aker Solutions group
Net income	(268)	(250)	152	383
Sum of special items excluded from EBT	607	657	716	913
Tax effects on special items	(151)	(171)	(168)	(237)
Sum of special items excluded from net income	456	486	548	676
Net income ex. special items	188	236	699	1,059
Subsea
Net income	64	(61)	112	282
Sum of special items excluded from EBT	422	242	449	312
Tax effects on special items	(108)	(60)	(108)	(78)
Sum of special items excluded from net income	315	183	340	233
Net income ex. special items	379	122	452	516
Field Design
Net income	29	(67)	295	375
Sum of special items excluded from EBT	26	254	87	268
Tax effects on special items Sum of special items excluded from net income	(7) 19	(68) 185	(21) 66	(72) 196
Net income ex. special items	48	118	362	571
Net income to non-controlling interests	(21)	25	(95)	8
Average numbers of shares	270,751,471	271,038,221	270,916,252	271,287,405
Earnings per share 1	(1.07)	(0.83)	0.28	1.44
Earnings per share ex. special items 2	0.62	0.96	2.23	3.94

1) Earnings per share is calculated using net income, adjusted for non-controlling interests, divided by average number of shares. 2) Earnings per share ex. special items is calculated using net income ex. special items, adjusted for non-controlling interests,

Order intake measures

Order intake, order backlog and book-to-bill ratio are presented as alternative performance measures as they are indicators of the company's revenues and operations in the future.

Order intake	includes new signed contracts in the period in addition to expansion of existing contracts. For construction contracts, the order intake is based on the signed contract value excluding potential options and change orders. For service contracts, the order intake is based on the estimated value of firm periods in the contracts.
Order backlog	represents the estimated value of remaining work on signed contracts.
Book-to-bill ratio	is calculated as order intake divided by revenue in the period. A book-to-bill ratio higher than 1 means that the company has secured more contracts in the period than what has been executed in the same period.
	Amounts in NOK million	4Q 2016	4Q 2015	2016	2015
	Revenue	6,138	7,864	25,557	31,896
	Order intake	4,094	6,388	17,004	22,793

Book-to-bill ratio 0.7 0.8 0.7 0.7

Financing measures

Alternative financing and equity measures are presented as they are indicators of the company's ability to obtain financing and service its debts.

Gross interest bearing debt	is a measure of the total financing in the company and is calculated by adding the current and non-current interest-bearing debt.
	Amounts in NOK million	December 31, 2016	December 31, 2015
	Current borrowings	2,110	561
	Non-current borrowings	1,844	3,137
	Gross interest-bearing debt	3,954	3,698
Net interest bearing debt	is calculated by adding current and non-current interest-bearing debt and subtracting cash and cash equivalents.
	Amounts in NOK million	December 31, 2016	December 31, 2015
	Gross interest-bearing debt	3,954	3,698
	Non-current interest-bearing receivables1	(472)	(136)
	Cash and cash equivalents	(2,477)	(3,862)
	Net interest-bearing debt	1,005	(301)
	1) Non-current interest-bearing receivables are included in Other non-current assets in condensed consolidated balance sheet.
Equity ratio	is calculated as total equity divided by total assets.
	Amounts in NOK million	December 31, 2016	December 31, 2015
	Total equity	6,415	6,630
	Total assets	21,497	27,729
	Equity ratio	29.8 %	23.9 %
Ratio of net interest-bearing debt to equity	is a liquidity ratio used to measure interest-bearing debt relative to shareholders' equity. A higher ratio indicates that more creditor financing (bank loans) is used than investor financing (shareholders).
	Amounts in NOK million	December 31, 2016	December 31, 2015
	Net interest-bearing debt	1,005	(301)

Total equity 6,415 6,630 Ratio of net interest-bearing debt to equity 15.6 % (4.5 %)

Fourth-quarter and preliminary annual results 2016 | Figures and notes

interest-bearing debt to EBITDA is a gearing leverage ratio for the liquidity position reflecting the ability to pay off debts by comparing the financial obligations to the operating income. The ratio is also one of the debt covenants for the company, and restructuring and demerger costs are excluded as defined in the loan agreement.

Amounts in NOK million	December 31, 2016	December 31, 2015
Current borrowings	2,110	561
Non-current borrowings	1,844	3,137
Cash and cash equivalents	(2,477)	(3,862)
Net debt	1,476	(165)
EBITDA	1,929	1,841
Restructuring and demerger cost	168	439
EBITDA adj for restructuring and demerger cost	2,097	2,280
Ratio of net interest-bearing debt to EBITDA	0.7	(0.1)

Ratio of net

Liquidity buffer is a measure of available cash and is calculated by adding together the cash and cash equivalents and the unused credit facility.

Amounts in NOK million	December 31, 2016	December 31, 2015
Cash and cash equivalents	2,477	3,862
Credit facility (unused)	5,000	5,000
Liquidity buffer	7,477	8,862

Net current operating assets (NCOA)

is a measure of the working capital and consist of operating assets, current tax assets, current operating liabilities and current tax liabilities.

Amounts in NOK million	December 31, 2016	December 31, 2015
Current operating assets	8,051	11,799
Current tax assets	242	118
Current operating liabilities	(9,087)	(13,516)
Current tax liabilities	(80)	(9)
Net current operating assets (NCOA)	(874)	(1,607)

Net capital employed is a measure of both short and long term tied up capital related to ordinary business.

Amounts in NOK million	December 31, 2016	December 31, 2015
Property, plant and equipment	3,808	3,962
Intangible assets	5,631	6,207
Deferred tax assets	639	332
Net current operating assets (NCOA)	(874)	(1,607)
Investments and non-current receivables1	132	16
Pension obligations	(540)	(572)
Deferred tax liabilities	(309)	(283)
Other non-current liabilities	(92)	(27)
Net capital employed	8,395	8,029

1) Part of other non-current assets in condensed consolidated balance sheet.

Aker Solutions ASA Oksenøyveien 8, NO-1366 Lysaker

Postal address: P.O. Box 169 NO -1325 Lysaker

Telephone: +47 67 51 30 00 Telefax: +47 67 51 30 10 E-mail: ir@akersolutions.com Web: www.akersolutions.com

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