Aker Solutions — Investor Presentation 2015

Mar 17, 2015

Preferred partner

Investor Day 2015

London, March 17, 2015 Luis Araujo, CEO | Svein Stoknes, CFO

Forward-Looking Statements and Copyright

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 ASA's (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.

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.

Positioned to Capture Growth

Strategic Objectives

• 1. Be the preferred partner, with an unparalleled level of safety and performance
• 2. Capture growth in offshore deepwater, subsea and harsh environment markets
• 1. Maintain and expand a global presence through disciplined, organic growth
• 1. Further develop portfolio with a diversity of customers, regions and strong contract mix
• 1. Deliver operational excellence, realize synergies, strengthen cost control and capital discipline

Creating Value Through Subsea

Creating Value at the Front End

• Current market fuels interest in feasibility, concept studies
• Early involvement to boost overall economics, value of field developments
• Front-end spectrum teams use expertise across Subsea, Engineering, MMO

Creating Value Through Technology Development

• R&D focus on developing cost-effective solutions to solve industry challenges
• Aging fields
• Complex reservoirs
• Stricter regulation
• Higher costs
• Four main R&D areas
• Advanced subsea production products and solutions
• New generation subsea controls and automation systems
• Offshore greenfield concepts
• Offshore brownfield modifications
• Subsea Production Alliance
• Develops solutions to boost output and recovery, reduce costs at subsea fields
• Introducing cost-effective, fast-track POWERJump boosting system

Improvement Agenda | Internally at Aker Solutions

• Cost-savings programs in all business segments and corporate functions
• Renegotiated contract terms with suppliers and contractors

• Adjusted workforce capacity

• Major push to improve quality and efficiency in execution

• Focus on simplifying and standardizing work processes
• Reorganized functions to better use expertise across business

Improvement Agenda | Externally With Our Customers

• Collaboration with clients to achieve operational, costsavings improvements
• Utilize know-how and technology to find effective development solutions
• Pit Stop project cut time spent on subsea tree refurbishment to 17 weeks from 1 year
• Committed to STEP program with Statoil

Key Figures | 2014

Revenue and EBIT

NOK billion

Order intake & backlog

NOK billion

Good Visibility From Strong Order Backlog¹

End 2014 order backlog by execution date

NOK billion

Order backlog by business area¹ NOK billion

Order intake and backlog

NOK billion

End 2014 order backlog by region¹

¹ Firm backlog only, excludes majority of service business and potential additional revenue from existing agreements

Financial Guidance

• Positive long-term offshore, deepwater outlook
• Near-term uncertainty on award timings
• Aim to at least maintain market share in main subsea, field design markets

Revenue Balance sheet

• Maintenance capex / R&D ≈ 3% of revenue
• Current major capex expansion plans to be finished in 2015
• Working capital: likely to fluctuate around large project work but on average will be ≈ 5 - 7% of group revenue

Margins and returns Financial policy

• We aim to gradually move toward peer group margin levels in Subsea
• We expect continued robust margins in Engineering, gradual recovery in MMO

• We aim for Subsea ROACE of 20 25% over medium term

• Gearing target: Net interest bearing debt / EBITDA ≈ 1

• Gearing policy: Net interest bearing debt / Equity < 0.5
• Dividend payments should over time amount to 30 - 50% of net profit

Outlook

• Increased short-term market uncertainty amid concern over capital constraints, oil price drop
• Steady tendering in main markets, though risk of project delays
• North Sea activity seen sluggish next 1-2 years even as projects like Johan Sverdrup support industry
• Aker Solutions well placed to capture deepwater, subsea growth globally
• Revenue generated outside Norway set to overtake NCS sales
• Robust order intake provides position of strength in current market environment
• Company to be vigilant about costs, workforce capacity in all areas