Aker — Earnings Release 2019

Jul 18, 2019

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Q2 2019

Aker ASA Second-quarter and half year results 2019

18 July 2019

First half 2019:

• Net asset value: Increased NOK 4.7 billion (11.3%) to NOK 44.8 billion
• Return: Aker share price increased 11.1% to NOK 491, dividend adjusted vs. OSEBX up 8.2%
• Liquidity reserve: NOK 6.1 billion, cash amounted to NOK 3.4 billion
• Dividend: NOK 22.50 per share cash dividend distributed in May

Second quarter:

• Net asset value: Decreased NOK 9.8 billion (17.4%) to NOK 44.8 billion when including NOK 1.7 billion paid dividends in the second quarter
• Return: Aker share down 22% to NOK 491

Main events in second quarter:

• Aker BP: New and attractive financing in place
• Aker Energy: Plan for Development and Operations (PDO) resubmitted in June, assisted AGM Petroleum in drilling in the adjacent South Deepwater Tano block
• Ocean Yield: Acquired three dry-bulk vessels on long-term charters

Subsequent events:

• Aker Energy: Entered into a financing agreement (convertible bond) with Africa Finance Corporation
• Aker BP: Successful exploration results in Liatårnet adding 80-200 mmboe to recoverable reserves

Net asset value change in 2Q 2019

NOK billion

Net asset value change in 1H 2019 NOK billion

Aker ASA and holding companies

Share price up 11.1% dividend adjusted - continued strong balance sheet

NAV per share vs. share price NOK per share

Net asset value composition NOK billion, per 2Q 2019

Aker ASA and holding companies Portfolio composition

Portfolio composition NOK billion, per 2Q 2019

				Listed investments
Industrial Holdings			Financial Investments
Aker BP	40.0%	35.2	3.4	Cash
1)) Aker Solutions	34.8%	3.3	0.8	Listed financial investments
1)) Akastor	36.7%	1.2	0.6	Real Estate Investments2)
Kvaerner 1)	28.7%	1.1
Ocean Yield	61.7%	5.6
Aker BioMarine 2)	98.0%	2.4
Aker Energy 2)	49.3%	0.9
2) Cognite	64.6%	<0.1
Gross asset value		49.6	7.1
Net asset value		44.8

Gross asset value distribution Per 2Q 2019 (1Q 2019)

1)Owned partly through Aker Kvaerner Holding, in which Aker has a 70% ownership interest. Additionally, Aker has a direct ownership interest in Aker Solutions and Akastor 2)Reflected at book value

3.4

6

Aker ASA and holding companies

Strong liquidity position

- upstream cash expected to exceed NOK 3.0 billion in 2019

Aker BP

Exploration & Production company on the Norwegian continental shelf

% of gross asset value

(2Q 2019)

Investment value of NOK 35.2 billion

Aker's ownership agenda

• Organic and structural growth
• Dividend growth
• Operational excellence and efficiency improvements through new business models and technologies, including digitalisation

Aker's investment

NOK million
Value as per 31.03.19	44 223
Value change in 2Q	(8 336)
Dividend income	(653)
Value as per 30.06.19	35 234

USD million	2Q 18	2Q 19	1H 18	1H 19
Revenues	925	785	1 870	1 621
EBITDAX	773	583	1 519	1 212

Aker Energy

Exploration & Production company in Ghana

% of gross asset value (2Q 2019)

Aker's ownership agenda

• Approval of Plan for Development and Operations
• Financing of Pecan field development
• Establish and build local content strategy around Aker Ghana Industrial Corporation

Aker's investment

NOK million
Value as per 31.03.19	722
Value change in 2Q	-
Net investments	138
Value as per 30.06.19 (book	860
Key figures
USD million	2Q 18	2Q 19	1H 18	1H 19
Revenues	0	2	0	2
EBITDA	(26)	(48)	(26)	(65)

Aker Solutions

Global oil services company providing services, technologies, and product solutions within subsea and field design

% of gross asset value

(2Q 2019)

Investment value of NOK 3.3 billion

Aker's ownership agenda

• Increase competitiveness, reach cost-efficiency target of 50 per cent by 2021
• Organic growth by winning new contracts
• Strategic growth through alliances and M&A

Aker's investment

NOK million
Value as per 31.03.19	4 119
Value change in 2Q	(821)
Value as per 30.06.19	3 298

NOK million	2Q 18	2Q 19	1H 18	1H 19
Revenues	6 254	7 525	11 737	14 781
EBITDA	439	623	864	1 257
Backlog			36 981	29 473

Akastor

Oilfield services investment company with a flexible mandate for longterm value creation

% of gross asset value

(2Q 2019)

Investment value of NOK 1.2 billion

Aker's ownership agenda

• Operational excellence, cost reductions
• Win new contracts
• Transactions

Aker's investment

NOK million
Value as per 31.03.19	1 319
Value change in 2Q	(149)
Value as per 30.06.19	1 171

NOK million	2Q 18	2Q 19	1H 18	1H 19
Revenues	873	1 304	1 754	2 375
EBITDA	78	114	141	206
Backlog			2 907	3 529

Kvaerner

Oil and gas-related EPC company

% of gross asset value (2Q 2019)

Investment value of NOK 1.1 billion

Aker's ownership agenda

• Enhance competitiveness through operational excellence and cost reductions
• Win new contracts
• Maintain strong balance sheet

Aker's investment

NOK million
Value as per 31.03.19 976
Value change in 2Q 83
Dividend income -
Value as per 30.06.19 1 059
Key figures
NOK million	2Q 18	2Q 19	1H 18	1H 19
Revenues	1 827	1 876	3 740	3 995
EBITDA	91	132	283	261
Backlog			11 204	9 037

Ocean Yield

A maritime assets company with focus on long-term contracts

% of gross asset value

(2Q 2019)

Investment value of NOK 5.6 billion

Aker's ownership agenda

• Growth and diversification through transactions
• Manage and mitigate counterparty risk
• Re-contract FPSO Dhirubhai-1
• Optimise capital structure, reduce cost of capital and maintain attractive dividend

Aker's investment

NOK million
Value as per 31.03.19 6 278
Value change in 2Q (494)
Dividend income (164)
Value as per 30.06.19 5 619
Key figures
USD million 2Q 18 2Q 19 1H 18 1H 19
Revenues	95	67	184	125
EBITDA 84 57 162 109
EBITDA backlog	3 600 3 300

Industrial Holdings Aker BioMarine

Integrated biotech company – specialised in krill harvesting and processing

% of gross asset value

(2Q 2019)

Aker's ownership agenda

• Operational excellence and improve profitability
• Increase sales by entering new products, channels and geographies
• Extract synergies from transactions
• Investments to fast-track growth

Aker's investment

NOK million
Value as per 31.03.19 (book value)	2 411
Sale of shares in 2Q	(48)
Value as per 30.06.19 (book value)	2 363

USD million	2Q 18	2Q 19	1H 18	1H 19
Revenues	44	67	79	106
EBITDA	16	17	19	19

Cognite

Software & digitalisation company

% of gross asset value (2Q 2019)

Book value < NOK 0.1 billion

Aker's ownership agenda

• Expand customer base in oil and gas and other assetintensive industry verticals
• Continue to recruit top talent
• International expansion
• Pursue strategic partnerships
• Long-term plan for IPO

Aker's investment

NOK million
Value as per 31.03.19 (book value)	42
Value change in 2Q	-
Value as per 30.06.19 (book value)	42

NOK million	2Q 18	2Q 19	1H 18	1H 19
Revenues	26	71	57	144
EBITDA	1	(9)	6	(10)

Aker Financial Investments

Financial Investments Overview

% of gross asset value (30.06.2019)

NOK billion

• Other financial investments
• Real estate
• Listed financial investments
• Cash

*) 31.12.18 figures have been restated to reflect that share investments in Aker Energy and Cognite from 2019 are included in Industrial Holdings.

Financial Investments Cash

% of gross asset value (30.06.2019)

• Cash up NOK 0.3 billion in the quarter to NOK 3.4 billion:
• • NOK 1 724 million drawn on credit facility
• • NOK 898 million in dividend received in cash
• NOK 1 671 million in dividend paid
• NOK 253 million in net increased receivables to portfolio companies
• NOK 138 million in investment in Aker Energy
• NOK 152 million in operating expenses and net interest
• NOK 147 million in net other cash movements and f/x adjustments
• Total liquidity reserve of NOK 6.1 billion, including undrawn credit facilities.

Financial Investments Listed financial investments

% of gross asset value (30.06.2019)

• Philly Shipyard value decrease of NOK 12 million.
• Value increase of American Shipping Company shares with NOK 37 million. In addition, a positive value change on AMSC TRS exposure of NOK 62 million.
• Dividend income from AMSC of NOK 21 million (shares and TRS).

Aker's investment

NOK million	4Q 18	1Q 19	2Q 19
Philly Shipyard	203	279	267
AMSC (excl. TRS)	385	369	406
Solstad Offshore	101	92	91
Other	13	9	6
Total value	701	749	770
AMSC TRS*	(32)	(55)	8
*) From 4Q 18 inluded in «interest-free liabilities» if negative value and in «other financial investments» if positive value.

Financial Investments

Real estate and other financial investments

% of gross asset value (30.06.2019)

• NOK 220 million in funding to Aker BioMarine.
• Prepayment for a new airplane of NOK 100 million.

Aker's investment

NOK million	4Q 18*	1Q 19	2Q 19
Real estate	568	568	568
Other financial investments	1 860	1 997	2 346
Total value	2 428	2 565	2 914

*) 4Q 18 figures have been restated to reflect that share investments in Aker Energy and Cognite from 2019 are included in Industrial Holdings.

Aker Financial Statements

Aker ASA and holding companies Balance sheet at 30.06.2019

Aker ASA and holding companies Interest-bearing items as of 30.06.2019

Average debt maturity is 2.7 years For details on interest-bearing items and loan guarantees, see: https://www.akerasa.com/Investor/Treasury

NOK million

Financial Covenants	Limit	Status at 30.06.2019
i Total Debt/Equity - Aker ASA (parent only)	< 80%	44%
ii Group Loans to NAV or Group Loans	< 50% < NOK 10 bn	2.1% NOK 1.0 bn

Aker ASA and holding companies Income statement

Amounts in NOK million	2Q 2018	2Q 2019	1H 2018	1H 2019	Year 2018
Sales gains	194	-	194	-	194
Operating expenses	(62)	(69)	(130)	(135)	(254)
EBITDA	132	(69)	64	(135)	(60)
Depreciation and impairment	(4)	(6)	(8)	(11)	(18)
Value change	526	(190)	347	(138)	(383)
Net other financial items	519	831	1 035	1 628	1 927
Profit before tax	1 173	566	1 438	1 344	1 467

Disclaimer

• This Document 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 Document 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 ASA and Aker 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's 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 Document. Although Aker ASA believes that its expectations and the Document 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 Document. Aker ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Document, and neither Aker ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.
• The Aker group consists of many legally independent entities, constituting their own separate identities. Aker is used as the common brand or trade mark for most of this entities. In this document we may sometimes use "Aker", "Group, "we" or "us" when we refer to Aker companies in general or where no useful purpose is served by identifying any particular Aker company.