Aker Solutions — Investor Presentation 2020

Apr 30, 2020

1Q 2020

Fornebu, April 30, 2020 Luis Araujo and Ole Martin Grimsrud

2020 © Aker Solutions

Agenda | 1Q 2020

Introduction Luis Araujo Chief Executive Officer Q&A Session Luis Araujo CEO Ole Martin Grimsrud CFO Questions Answers Financials Ole Martin Grimsrud Chief Financial Officer

Main Developments

Brent Oil Price | 1Q 2020 (USD)

COVID-19 Outbreak Impact

Impact

• Offshore work postponed
• Travel restrictions

Actions

• 850 temporary layoffs
• Demobilization of 3,300 contractors

Productivity

■ Good execution on key projects to clients like Equinor, CNOOC and more

Key Figures | 1Q 2020

Revenue EBITDA Order Intake

Order Backlog

New Orders

Brownfield Services Contract in Brunei

20-Year Umbilicals Master Agreement

1Q 2020	1Q 2019
42	31
7	9
1	2

Swift and Decisive Action Taken

• Offshore operators have cut investment plans for 2020 by more than 20%
• Aker Solutions to cut 2020 capex to about NOK 500 million, down 40% from 2019
• Launched initiatives to reduce fixed cost level by about NOK 1 billion on an annualized basis
  • Close subsea tree production in Norway
  • Reduce manning in Malaysia and Brazil
  • Close yard in Sandnessjøen, Norway
  • Freeze salaries, no variable pay scheme for 2020
  • Reduce overhead personnel and costs across all regions

Outlook

Uncertain and Disruptive 2Q

• Health and safety
• Business continuity
• Cost reductions

2020 Revenue Seen Down About 30%

• Greenfield projects delayed
• Resilient subsea services
• Optimize footprint, structure and capacity

Positioning for Future Market

• 20/25/30 strategy remains firm
• Energy transition
• Client partnerships

Agenda | 1Q 2020

Introduction Questions Answers Financials Q&A Session

Luis Araujo Chief Executive Officer

Ole Martin Grimsrud Chief Financial Officer

Luis Araujo CEO Ole Martin Grimsrud CFO

1Q 2020 | Income Statement

NOK million	1Q 2020	1Q 2019	2019
Revenue	6,510	7,256	29,263
EBITDA	149	634	2,244
EBITDA margin	2.3%	8.7%	7.7%
EBITDA ex. special items1	314	636	2,316
EBITDA margin ex. special items1	4.8%	8.8%	7.9%
Depreciation, amortization and impairment	(850)		(309) (1,539)
EBIT	(701)	325	705
EBIT margin	(10.8%)	4.5%	2.4%
EBIT ex. special items1	12	329	1,081
EBIT margin ex. special items1	0.2%	4.5%	3.7%
Net financial items	(141)	(96)	(535)
FX on disqualified hedging instruments	13	(3)	(0)
Income (loss) before tax	(829)	226	170
Income tax	99	(77)	(87)
Net income (loss)	(730)	149	83
Net income (loss) ex. special items1	(162)	158	353
Earnings per share (NOK)	(2.73)	0.54	0.15
Earnings per share (NOK) ex. special items1	(0.64)	0.58	1.54

• First quarter revenue decreased by 10% year-on-year
  • Mainly driven by Field Design, as previously guided following the record activity last year
• First quarter underlying EBITDA decreased year-on-year to NOK 314 million
  • Underlying EBITDA margin of 4.8% versus 8.8% a year earlier
• First quarter restructuring charges of NOK 155 million
  • Mainly related to restructuring of the organization to match activity where necessary, including lowering headcount and closing certain facilities
• First quarter impairments of NOK 548 million
  • Mainly related to non-cash impairments of intangible assets and other long-lived assets
• Earnings per share of negative NOK 2.73 kroner
  • Earnings per share excluding special items, were negative NOK 0.64 kroner versus NOK 0.58 kroner a year earlier

¹ Special items mainly include restructuring costs, impairments, onerous leases, gain/loss on sale of PPE and costs linked to the impact of currency derivatives not qualifying for hedge accounting. See appendix for details on special items

1Q 2020 | Cashflow and Financial Position

• Working capital1 at NOK 1,053 million
• Cashflow from operations at minus NOK 299 million
• Cashflow from investments at minus NOK 261 million
• Net interest-bearing debt2 of NOK 2.1 billion and leverage2 1.4x (covenants at 3.5x)
• Available liquidity of NOK 5.8 billion (cash NOK 2.8 billion and RCF NOK 3.0 billion)

1 See definition under Alternative Performance Measures in the appendix

Debt Maturity Profile2 NOK million

Working Capital Net Interest-Bearing Debt and Leverage1,2 NOK million,x times ¹ NOK million

2 Excluding the effects of IFRS 16 as covenants are based on frozen GAAP

Projects

• Lower activity mainly driven by Field Design as anticipated, following the record activity last year
• Revenue down 14% year-on-year to NOK 5.1 billion
• EBITDA margin1 of 6.0% vs 8.0% a year earlier

EBITDA and Margin1

NOK million, %

■ EBIT margin1 of 2.0% vs 4.7% a year earlier

• Order intake of NOK 2.7 billion, equal to 0.5x book-to-bill
• Order backlog of NOK 14.2 billion

EBIT and Margin1

Working Capital NOK billion

¹ Figures are excl. special items

Revenue NOK billion

• Activity driven by continued progress on ongoing projects
• Revenue stable at NOK 2.3 billion year-on-year
• Order intake of NOK 1.4 billion, equal to 0.6x book-to-bill
• Backlog of NOK 6.7 billion

Projects | Subsea Projects | Field Design

• Lower activity as previously guided, following record year in 2019
• Revenue down 21% to NOK 2.8 billion year-on-year
• Order intake of NOK 1.3 billion, equal to 0.5x book-to-bill
• Backlog of NOK 7.4 billion

1Q 19

5

5

3

2

4

0

1

2.4

3.5

2.3

3.7

NOK billion

Services

• Topside brownfield maintenance impacted by COVID-19
• Activity more resilient within Subsea Lifecycle Services
• Revenue up 7% year-on-year to NOK 1.4 billion
• EBITDA margin1 of 5.6% vs 14.4% a year earlier

Revenue NOK billion

EBITDA and Margin1

NOK million, %

• EBIT margin1 of 1.1% vs 9.3% a year earlier
• Strong order intake of NOK 4 billion, equal to 2.8x book-to-bill
• Order backlog of NOK 12 billion

EBIT and Margin1

0

50

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

Working Capital

NOK billion

2020 © Aker Solutions

1%

15

0%

5%

Order Backlog Gives Reasonable Visibility

1Q 2020 Order Backlog by Execution Date NOK billion

Order Backlog by Segment NOK billion

Order Backlog and Intake Development NOK billion

Order Backlog by Market

Financial Guidance

Revenue and Margin

• Unprecedented impacts of the COVID-19 pandemic with steep decline in oil demand and commodity prices, resulting in significant slowdown in activity
• Main financial priority is cash conservation and protecting the company's balance sheet and financial performance
• Significant lower activity level in 2Q driven by lower revenues from ongoing projects and services, as well as expected lower order intake
• Depth and scale of the decline is uncertain
  • 2Q likely to be the most uncertain and disruptive quarter the industry has ever seen
• Activity level expected to be reduced considerably going forward and 2020 revenues likely to decline by about 30 percent versus 2019
• Additional restructuring costs and impairments likely to occur in 2Q

Balance Sheet and Cashflow

• Working Capital likely to fluctuate with large project work and continue to trend around the NOK 1.0 to 1.3 billion level going forward
• Capex and R&D is expected to be reduced by about 40% versus 2019, to around NOK 500 million
• Strict cost and capital reduction measures, including significant initiatives aiming to reduce the company's fixed cost level by a total of about NOK 1 billion on an annualized basis
• Initiatives include restructuring the organization to match activity where necessary, including lowering headcount, furloughing personnel, closing facilities and cutting all variable salaries
• Covenants at 3.5x Net Interest-Bearing Debt / EBITDA for both bonds and RCF (excl. special items and IFRS 16)

(Forward-looking statements involve significant risks, uncertainties and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections)

Agenda | 1Q 2020

Introduction Q&A Session Questions Answers Financials

Luis Araujo Chief Executive Officer

Ole Martin Grimsrud Chief Financial Officer

Luis Araujo CEO Ole Martin Grimsrud CFO

Basis for Preparation

This presentation provides financial highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange.

The financial information is not reported according to the requirements in IAS 34 (Interim Financial Reporting) and the figures are not audited.

The same measurement principles as presented in the Annual Report 2019 have been used preparing this presentation.

Alternative Performance Measures

Aker Solutions discloses alternative performance measures in addition to those normally required by IFRS as such performance measures are frequently used by securities analysts, investors and other interested parties.

Alternative performance measures 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 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 in the annual report.

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

Margins such as EBITDA margin and EBIT margin are used to compare relative profit between periods. EBITDA margin and EBIT margin are calculated as EBITDA or EBIT divided by revenue.

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

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, divided by average number of shares

NOK million	Projects		Services		Other/eliminations		Aker Solutions
	1Q 2020	1Q 2019	1Q 2020	1Q 2019	1Q 2020	1Q 2019	1Q 2020	1Q 2019
Revenue	5,119	5,952	1,386	1,299	6	5	6,510	7,256
Non-qualifying hedges	-	-	-	-	(9)		(9)
Sum of special items excluded from revenue	-	-	-	-	(9)		(9)
Revenue ex. special items	5,119	5,952	1,386	1,299	(3)	5	6,501	7,256
EBITDA	173	477	62	186	(86)	(30)	149	634
Restructuring cost	132	1	15	1	8	1	155	3
Non-qualifying hedges	-	-	-	-	10	(2)	10	(2)
Other special items	-	(0)	-	-	(0)	2	(0)	2
Sum of special items excluded from EBITDA	132	1	15	1	18	1	165	3
EBITDA ex. special items	305	478	78	187	(68)	(29)	314	636
EBITDA margin	3.4 %	8.0 %	4.5 %	14.3 %			2.3 %	8.7 %
EBITDA margin ex. special items	6.0 %	8.0 %	5.6 %	14.4 %			4.8 %	8.8 %
EBIT	(403)	280	(123)	120	(175)	(75)	(701)	325
Sum of special items excluded from EBITDA	132	1	15	1	18	1	165	3
Impairments	372	-	123	-	53	2	548	2
Sum of special items excluded from EBIT	504	1	138	1	71	3	713	5
EBIT ex. special items	101	281	15	120	(104)	(72)	12	329
EBIT margin	-7.9 %	4.7 %	-8.9 %	9.2 %			-10.8 %	4.5 %
EBIT margin ex. special items	2.0 %	4.7 %	1.1 %	9.3 %			0.2 %	4.5 %
Net income							(730)	149
Sum of special items excluded from EBIT							713	5
Non-qualifying hedges							(13)	3
Tax effects on special items							(133)	2
Net income ex. special items							(162)	158
Net income to non-controlling interests							(12)	(1)
Net income ex. non-controlling interests							(174)	157
Average number of shares (in '000)							271,943 271,533
Earnings per share1)							(2.73)	0.54
Earnings per share ex. special items2)							(0.64)	0.58

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.

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

NOK million	1Q 2020	1Q 2019
Cash and cash equivalents	2,818	1,872
Credit facility (unused)	3,000	5,000
Liquidity buffer	5,818	6,872

Net Current Operating Assets (NCOA) or Working Capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, provisions and current tax assets and liabilities.

NOK million	1Q 2020	1Q 2019
Current tax assets	117	101
Inventory	329	320
Customer contract assets and other receivables	5,731	3,996
Trade receivables	3,503	4,150
Prepayments	1,633	1,522
Current tax liabilities	(174)	(121)
Provisions	(602)	(717)
Trade payables	(2,855)	(2,044)
Other payables	(5,956)	(6,128)
Customer contract liabilities	(673)	(831)
Net current operating assets (NCOA)	1,053	248

Net interest-bearing debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess the borrowing capacity of a company. The ratio shows how many years it would take for a company to pay back its debt if net debt and EBITDA are held constant. The ratio is one of the debt covenants of the company.

The ratio is calculated as net interest-bearing debt (total principal debt outstanding less unrestricted cash) divided by EBITDA. If a company has more cash than debt, the ratio can be negative. The leverage ratio for Aker Solutions does not include the effects of IFRS 16 Leasing, as the debt covenants are based on frozen GAAP.

Further, the EBITDA is calculated based on the last four quarter period and it excludes certain special items as defined in the loan agreements, such as restructuring of offices (onerous leases) and other restructuring costs.

NOK million	1Q 2020	1Q 2019
Non-current borrowings	4,643	1,764
Current borrowings	230	1,125
Cash and cash equivalents	(2,818)	(1,872)
Net interest-bearing debt	2,055	1,017
Trailing four quarters:
EBITDA	1,760	2,019
IFRS 16 effects excl. onerous lease cost	570	140
EBITDA excl. IFRS 16 effects and onerous lease cost	1,189	1,879
Onerous lease cost (IAS 17)	(0)	15
Restructuring cost	223	35
Non-qualifying hedges	12	(10)
Adjusted EBITDA	1,425	1,919
Net interest-bearing debt to EBITDA (leverage ratio)	1.4	0.5

Order Intake Measures

Order intake, order backlog and book-to-bill ratios 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. The backlog does not include part of the Services business, which is short cycled or book-and-turn in nature, or potential growth or options on existing 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.

NOK million		1Q 2020		1Q 2019
	Order intake	Revenue	Book-to-bill	Order intake	Revenue	Book-to-bill
Projects - Subsea	1,404	2,349	0.6	1,418	2,439	0.6
Projects - Field Design	1,295	2,770	0.5	2,064	3,512	0.6
Other/eliminations	(1)	(1)		-	1
Projects	2,699	5,119	0.5	3,482	5,952	0.6
Services	3,918	1,386	2.8	1,975	1,299	1.5
Other/eliminations	27	6		66	5
Aker Solutions	6,643	6,510	1.0	5,523	7,256	0.8

Special Items

NOK million, (Gain) / Loss

Special items (EBITDA)	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Restructuring	7	5	31	(3)	39	3	10	12	46	70	155
Non-qualifying hedges	(3)	(4)	(3)	(1)	(11)	(2)	(4)	5	1	0	10
(Gain) loss sale of PPE	(50)	-	-	-	(50)	-	-	-	-	-	-
Onerous leases under IAS 171)	-	-	-	15	15	(0)	(0)	0	(0)	(0)	(0)
Other special items	5	1	2	0	8	2	(0)	(1)	(0)	1	(0)
Total special items EBITDA	(41)	2	30	12	2	3	6	16	46	72	165
Special items (EBIT)
Impairments	14	0	1	6	22	2	221	0	81	304	548
Total special items EBIT	(27)	2	31	18	24	5	228	16	128	376	713

The table shows the Special items to be added to reported figures to get underlying figures

1) Onerous lease provisions under IAS 17 and IAS 37 were presented as part of EBITDA prior to 1.1.2019

Income Statement

NOK million
Income statement consolidated	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Revenue	5,483	6,254	6,541		6,954 25,232	7,256	7,525	7,134		7,348 29,263	6,510
Operating expenses									(5,057) (5,815) (6,078) (6,471) (23,422) (6,622) (6,902) (6,581) (6,914) (27,019) (6,361)
EBITDA	425	439	463	483	1,810	634	623	553	434	2,244	149
Of which related to hedging	3	4	3	1	11	2	4	(5)	(1)	(0)	(10)
Depreciation and amortization	(185)	(184)	(179)	(190)	(739)	(307)	(304)	(308)		(315) (1,234)	(302)
Impairment	(14)	(0)	(1)	(6)	(22)	(2)	(221)	(0)	(81)	(304)	(548)
EBIT	226	254	282	287	1,049	325	98	245	37	705	(701)
Net interest cost	(69)	(58)	(45)	(57)	(229)	(105)	(112)	(115)	(119)	(451)	(122)
Foreign exchange on disqualified hedging instruments	2	(18)	(3)	2	(16)	(3)	(5)	6	2	(0)	13
Other financial items	(1)	(5)	(1)	(5)	(12)	9	(1)	4	(96)	(84)	(19)
Net financial items incl. disqualified hedging instruments	(68)	(81)	(49)	(60)	(258)	(99)	(118)	(105)	(213)	(535)	(128)
Net income (loss) before tax	158	173	233	227	792	226	(20)	140	(176)	170	(829)
Income tax	(53)	(57)	(78)	(50)	(238)	(77)	8	(47)	28	(87)	99
Net income (loss) for the period	105	117	155	178	554	149	(11)	93	(148)	83	(730)
Net income attributable to:
Equity holders of the parent company	103	115	136	158	511	148	(30)	81	(158)	41	(742)
Non-controlling interests	2	2	19	20	43	1	18	12	10	41	12
EBITDA margin	7.8 %	7.0 %	7.1 %	7.0 %	7.2 %	8.7 %	8.3 %	7.8 %	5.9 %	7.7 %	2.3 %
Basic earnings per share (NOK)	0.38	0.42	0.50	0.58	1.88	0.54	-0.11	0.30	-0.58	0.15	(2.73)

Balance Sheet – Assets

NOK million
Assets	1Q 2018	2Q 2018	3Q 2018	4Q 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	1Q 2020
Property, plant and equipment	3,077	2,977	2,905	3,044	2,945	2,916	3,031	3,065	3,235
Intangible assets	5,695	5,646	5,596	5,686	5,690	5,578	5,669	5,710	5,589
Right-of-use assets	-	-	-	-	4,184	3,848	3,796	3,628	3,710
Deferred tax assets	648	644	607	663	782	751	858	871	1,093
Lease receivables	-	-	-	-	715	665	652	663	829
Other investments	101	97	48	79	157	157	94	93	93
Other non-current assets	88	87	79	84	85	168	242	268	309
Total non-current assets	9,609	9,451	9,235				9,556 14,557 14,084 14,343 14,298 14,857
Current tax assets	145	134	122	109	101	92	106	120	117
Inventories	334	308	277	326	320	353	397	369	329
Customer contract assets and other receivables	2,953	3,575	3,597	3,652	3,996	4,147	4,611	4,846	5,731
Trade receivables	2,819	2,838	3,258	3,236	4,150	4,063	4,061	3,182	3,503
Prepayments	1,479	1,394	1,126	1,348	1,522	1,918	1,653	1,564	1,633
Derivative financial instruments	171	209	236	218	110	86	118	156	469
Interest-bearing receivables	131	103	62	47	144	122	126	130	143
Cash and cash equivalents	2,607	2,440	2,392	2,473	1,872	2,228	1,758	1,898	2,818
Total current assets		10,639 11,001 11,070 11,408 12,215 13,009 12,830 12,265 14,742
Total assets		20,249 20,452 20,305 20,964 26,772 27,092 27,174 26,563 29,599

Balance Sheet – Liabilities and Equity

NOK million
Liabilities and equity	1Q 2018	2Q 2018	3Q 2018	4Q 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	1Q 2020
Total equity attributable to the parent	6,822	6,828	6,849	7,502	7,241	7,044	7,355	7,134	7,411
Non-controlling interests	25	28	45	106	107	123	110	97	78
Total equity	6,848	6,856	6,893	7,608	7,348	7,167	7,466	7,231	7,489
Non-current borrowings	2,745	2,703	2,777	1,788	1,764	2,714	2,720	3,280	4,643
Non-current lease liabilities	-	-	-	-	5,203	5,029	4,989	4,889	5,108
Pension obligations	524	538	529	572	566	562	557	663	666
Deferred tax liabilities	241	227	240	266	247	211	328	269	235
Other non-current liabilities	78	83	90	10	3	14	19	22	1
Total non-current liabilities	3,588	3,551	3,636	2,636	7,782	8,530	8,613		9,123 10,653
Current tax liabilities	47	37	98	68	121	79	48	81	174
Current borrowings	495	118	117	1,125	1,125	865	907	217	230
Current lease liabilities	-	-	-	-	563	556	565	571	628
Provisions	841	962	932	906	717	582	444	521	602
Trade payables	1,859	2,166	2,105	1,680	2,044	2,087	1,894	2,000	2,855
Other payables	5,705	5,815	5,855	6,062	6,128	6,364	6,727	6,021	5,956
Customer contract liabilities	700	685	416	709	831	730	389	677	673
Derivative financial instruments	165	262	254	172	112	132	122	121	340
Total current liabilities		9,813 10,045				9,776 10,721 11,641 11,396 11,095 10,209 11,457
Total liabilities and equity		20,249 20,452 20,305 20,964 26,772 27,092 27,174 26,563 29,599

Cashflow

NOK million
Cashflow	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
EBITDA continuing operations	425	439	463	483	1,810	634	623	553	434	2,244	149
Change in cashflow from operating activities	107	(121)	(506)	(370)	(890)	(937)	(568)	(726)	306	(1,925)	(449)
Net cashflow from operating activities	533	318	(44)	113	921	(303)	55	(173)	740	319	(299)
Acquisition of property, plant and equipment	(31)	(99)	(107)	(94)	(331)	(77)	(107)	(204)	(211)	(599)	(195)
Payments for capitalized development	(29)	(42)	(43)	(61)	(174)	(35)	(44)	(82)	(67)	(228)	(80)
Acquisition of subsidiaries, net of cash acquired	-	(0)	-	-	(0)	(14)	(21)	0	(0)	(35)	-
Change in current interest-bearing receivables	-	-	40	21	62	-	22	-	-	22	-
Sub-lease income received	-	-	-	-	-	28	34	22	29	113	31
Cashflow from other investing activities	85	39	50	(27)	147	(60)	(76)	16	(68)	(188)	(17)
Net cashflow from investing activities	25	(102)	(59)	(160)	(297)	(159)	(192)	(248)	(317)	(916)	(261)
Change in external borrowings	205	(388)	110	(26)	(99)	(22)	697	43	(124)	594	1,362
Lease installments paid	-	-	-	-	-	(134)	(136)	(138)	(152)	(559)	(161)
Other financing activities	0	1	(1)	0	(0)	(0)	0	(44)	(5)	(49)	(49)
Net cashflow from financing activities	205	(387)	108	(26)	(99)	(156)	561	(138)	(281)	(14)	1,152
Effect of exchange rate changes on cash and cash equivalents	(133)	4	(53)	153	(30)	17	(68)	89	(1)	37	328
Net increase (decrease) in cash and cash equivalents	630	(167)	(48)	81	495	(601)	356	(470)	140	(575)	920
Cash and cash equivalents as at the beginning of the period	1,978	2,607	2,440	2,392	1,978	2,473	1,872	2,228	1,758	2,473	1,898
Cash and cash equivalents as at the end of the period	2,607	2,440	2,392	2,473	2,473	1,872	2,228	1,758	1,898	1,898	2,818

Split Per Segment

NOK million
Revenue	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	4,239	4,862	5,211		5,608 19,920	5,952	6,015	5,627		5,658 23,253	5,119
Services	1,159	1,337	1,277	1,324	5,096	1,299	1,503	1,549	1,645	5,995	1,386
Other	89	58	72	78	298	42	35	(23)	121	176	29
Eliminations	(3)	(3)	(19)	(56)	(82)	(37)	(28)	(19)	(76)	(160)	(23)
Revenue	5,483	6,254	6,541		6,954 25,232	7,256	7,525	7,134		7,348 29,263	6,510
EBITDA	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	312	325	372	346	1,354	477	470	455	333	1,736	173
Services	135	172	183	188	678	186	205	162	168	721	62
Other	(22)	(58)	(92)	(50)	(222)	(30)	(52)	(64)	(67)	(213)	(86)
EBITDA	425	439	463	483	1,810	634	623	553	434	2,244	149
EBITDA margin	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	7.3 %	6.7 %	7.1 %	6.2 %	6.8 %	8.0 %	7.8 %	8.1 %	5.9 %	7.5 %	3.4 %
Services	11.7 %	12.9 %	14.3 %	14.2 %	13.3 %	14.3 %	13.6 %	10.5 %	10.2 %	12.0 %	4.5 %
EBITDA margin	7.8 %	7.0 %	7.1 %	7.0 %	7.2 %	8.7 %	8.3 %	7.8 %	5.9 %	7.7 %	2.3 %
EBIT	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	173	201	254	214	843	280	189	251	117	837	(403)
Services	94	131	141	145	511	120	122	100	58	399	(123)
Other	(41)	(78)	(114)	(72)	(305)	(75)	(213)	(105)	(137)	(531)	(175)
EBIT	226	254	282	287	1,049	325	98	245	37	705	(701)
EBIT margin	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	4.1 %	4.1 %	4.9 %	3.8 %	4.2 %	4.7 %	3.1 %	4.5 %	2.1 %	3.6 %	-7.9 %
Services	8.1 %	9.8 %	11.1 %	11.0 %	10.0 %	9.2 %	8.1 %	6.4 %	3.5 %	6.7 %	-8.9 %

EBIT margin 4.1 % 4.1 % 4.3 % 4.1 % 4.2 % 4.5 % 1.3 % 3.4 % 0.5 % 2.4 % -10.8 %

Split Per Segment

NOK million
NCOA	1Q 2018	2Q 2018	3Q 2018	4Q 2018		1Q 2019	2Q 2019	3Q 2019	4Q 2019		1Q 2020
Projects		(1,350) (1,540) (1,067) (1,141)				(262)	(66)	502	(239)		27
Services	550	646	633	693		908	936	896	844		909
Other	(622)	(521)	(591)	(306)		(398)	(139)	(71)	176		117
NCOA		(1,422) (1,415) (1,024)		(753)		248	731	1,327	781		1,053
Order intake	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	6,460	4,959	3,806		4,417 19,642	3,482	2,860	3,282		4,404 14,029	2,699
Services	2,205	691	2,102	759	5,756	1,975	902	1,408	1,080	5,365	3,918
Other	20	34	77	92	223	70	77	41	110	297	37
Eliminations	(46)	(11)	(127)	(16)	(200)	(3)	(17)	(18)	(33)	(71)	(10)
Order intake	8,639	5,673	5,857		5,252 25,421	5,523	3,822	4,713		5,561 19,620	6,643
Order backlog	1Q 2018	2Q 2018	3Q 2018	4Q 2018		1Q 2019	2Q 2019	3Q 2019	4Q 2019		1Q 2020
Projects		27,102 27,286 25,716 25,014						22,547 19,311 17,251 15,887			14,204
Services	10,483		9,802 10,507 10,294				10,917 10,275 10,256		9,613		12,245
Other	108	41	50	(0)		(6)	2	(0)	(6)		3
Eliminations	(140)	(148)	(192)	(159)		(126)	(115)	(114)	(91)		(84)
Order backlog		37,553 36,981 36,081 35,148						33,332 29,473 27,393 25,403			26,367

Own employees	1Q 2018	2Q 2018	3Q 2018	4Q 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	1Q 2020
Projects	6,945	7,025	7,091	7,188	7,459	7,729	7,794	7,737	7,276
Services	5,161	5,128	5,276	5,473	5,720	5,426	5,900	5,669	5,759

Split Per Segment – Excluding Special Items

NOK million
EBITDA (excl. special items)	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	322	328	373	348	1,371	478	475	455	372	1,780	305
Services	135	173	190	194	692	187	210	174	169	740	78
Other	(74)	(60)	(70)	(46)	(251)	(29)	(56)	(59)	(60)	(204)	(68)
EBITDA (excl. special items)	384	441	492	495	1,812	636	629	570	480	2,316	314
EBITDA margin (excl. special items)	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	7.6 %	6.7 %	7.2 %	6.2 %	6.9 %	8.0 %	7.9 %	8.1 %	6.6 %	7.7 %	6.0 %
Services	11.7 %	13.0 %	14.9 %	14.6 %	13.6 %	14.4 %	14.0 %	11.2 %	10.3 %	12.3 %	5.6 %
EBITDA margin (excl. special items)	7.1 %	7.1 %	7.5 %	7.1 %	7.2 %	8.8 %	8.4 %	8.0 %	6.5 %	7.9 %	4.8 %
EBIT (excl. special items)	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	199	203	255	217	874	281	270	250	159	960	101
Services	93	132	148	154	528	120	147	112	107	486	15
Other	(94)	(79)	(90)	(66)	(329)	(72)	(91)	(100)	(101)	(365)	(104)
EBIT (excl. special items)	199	256	313	305	1,074	329	325	262	165	1,081	12
EBIT margin (excl. special items)	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Projects	4.7 %	4.2 %	4.9 %	3.9 %	4.4 %	4.7 %	4.5 %	4.4 %	2.8 %	4.1 %	2.0 %
Services	8.0 %	9.9 %	11.6 %	11.6 %	10.4 %	9.3 %	9.8 %	7.2 %	6.5 %	8.1 %	1.1 %
EBIT margin (excl. special items)	3.7 %	4.1 %	4.8 %	4.4 %	4.3 %	4.5 %	4.3 %	3.7 %	2.2 %	3.7 %	0.2 %

Projects | Subsea and Field Design

NOK million
Revenue	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Subsea	1,956	2,084	2,079	2,042	8,162	2,439	2,343	2,171	2,309	9,262	2,349
Field Design	2,284	2,810	3,170		3,551 11,814	3,512	3,680	3,450		3,362 14,004	2,770
Eliminations/other	(1)	(32)	(38)	15	(57)	1	(8)	6	(12)	(13)	(1)
Revenue	4,239	4,862	5,211		5,608 19,920	5,952	6,015	5,627		5,658 23,253	5,119
Order intake	1Q 2018	2Q 2018	3Q 2018	4Q 2018	FY 2018	1Q 2019	2Q 2019	3Q 2019	4Q 2019	FY 2019	1Q 2020
Subsea	2,986	1,123	1,074	2,866	8,049	1,418	1,846	1,386	1,749	6,399	1,404
Field Design	3,487	3,867	2,715		1,566 11,635	2,064	999	1,899	2,652	7,615	1,295
Eliminations/other	(13)	(31)	17	(15)	(42)	-	15	(3)	3	15	(1)
Order intake	6,460	4,959	3,806		4,417 19,642	3,482	2,860	3,282		4,404 14,029	2,699
Order backlog	1Q 2018	2Q 2018	3Q 2018	4Q 2018		1Q 2019	2Q 2019	3Q 2019	4Q 2019		1Q 2020
Subsea	10,615	9,746	8,621	9,837		8,784	8,239	7,704	7,011		6,732
Field Design			16,470 17,521 17,043 15,161			13,721 11,021		9,499	8,829		7,431
Eliminations/other	17	19	52	16		42	51	48	46		41
Order backlog			27,102 27,286 25,716 25,014					22,547 19,311 17,251 15,887			14,204

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