Aker — Interim / Quarterly Report 2015

Jul 17, 2015

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Aker ASA Second-quarter results 2015

Oslo | 17 July 2015

Highlights | Second-quarter 2015

• Net asset value: NOK 21.0 billion in 2Q 2015 vs. NOK 19.1 billion in 1Q 2015, representing a 12.2% increase in the quarter (after cash dividend allocation)
• Dividend: NOK 399 million disbursed in dividend to shareholders. 84% of rights exercised in favour of partial dividend payment in shares, resulting in 1 947 134 new shares issued (i.e. 2.7% of Company's share capital as per 29.05.2015)
• Cash and liquid fund inv.: NOK 3.4 billion in 2Q 2015 vs. NOK 3.2 billion in 1Q 2015
• Return: Aker share gained 1.4% in 2Q 2015 (adjusted for dividend) to NOK 169 vs. 1.6% increase in OSEBX

▪ Portfolio events:

• Kvaerner awarded contract for topside of Johan Sverdrup utility and living quarter platform
• Det norske successfully refinanced its debt and diversified its capital structure
• Ministry of Petroleum allocated Det norske a 11.57% share in the unitised Sverdrup field
• Kristian Røkke appointed CEO of Akastor. Frank O. Reite named CFO of Aker

Aker ASA and holding companies NAV increased by 12.2% in 2Q 2015

Net asset value change in the period NOK billion

Note: Changes include the effect of dividend received

Aker ASA and holding companies Share price gained 1.4%, strong balance sheet

Net asset value NOK per share

Net asset value NOK billion1)

Aker ASA and holding companies

Portfolio mix
E&P	20%
Oil Services	22%
Maritime assets	24%
Seafood and Marine biotech	14%
Real Estate	3%
Cash and other assets	17%

• E&P rose 2% to 20%, while Oil Services decreased 2% to 22%
• Maritime assets increased from 22% to 24%
• The changes were mainly due to favourable share price performance in Det norske, Aker Solutions and Ocean Yield, while Akastor's share price declined

1)Privately-owned investments, reflected at book value rather than fair market value

Aker ASA and holding companies This is Aker

NOK billion, as per 30.06.2015

Listed investments

Unlisted investments

Industrial Holdings				Financial Investments
	Det norske	50.0%	5.6	3.4	Cash and liquid fund investments
	1)) Aker Solutions	34.8%	4.2	2.0	Other public investments
	1)) Akastor	34.5%	1.3	0.7	Real Estate Dev. (Fornebuporten)2)
	1) Kvaerner	28.7%	0.4	2.1	Other financial investments2,3)
	Ocean Yield	73.0%	6.0
	2) Aker BioMarine	99.0%	1.4
	Havfisk	73.2%	1.5
		Gross asset value	20.4	8.2
		Net asset value		21.0

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)The value of the unlisted shares in Align and Ocean Harvest is measured based on the valuation principles in "International Private Equity and Venture Capital Valuation Guidelines"

Aker ASA and holding companies Growth in underlying pro-rata financials

Dividend to Aker NOK billion EBITDA1) Pro-rata, NOK billion Operating revenues1) Pro-rata, NOK billion 6.4 11.8 14.4 NOK per share 2012 0.9 0.5 2013 1.0 2014 2015E 22.6 22.7 48.3 2015E 1.6 2012 2013 3.5 1.6 2014 279 296 370 2015E 21.4 2012 2013 2014 26.8 20.2 Financial Investments Industrial Holdings Bloomberg 2015 consensus 2) Aker estimates

1)Based on pro-rata consolidation

2)Assumes pro-rata Bloomberg 2015 consensus estimates as per 16.07.2015 for the six listed Industrial Holdings and 2014 numbers for the rest of the portfolio

Supported by high visibility and solid backlogs in most of the portfolio companies

Aker Industrial Holdings

Industrial Holdings

Share price performances

1) Share price adjusted for dividend

Industrial Holdings

Det norske

Exploration & Production company on the Norwegian continental shelf

Aker's ownership agenda

• Conclude Johan Sverdrup unitisation
• Maintain operational and project development excellence

NOK 5.6 billion

High-grade portfolio selectively

Aker's investment NOK million

Value as per 31.03.15	4 504
Invested / divested in 2Q	-
Dividend received in 2Q	-
Value change in 2Q	1 117

Key figures USD million	2Q14	2Q15	1H14	1H15
Revenues	74	337	100	661
EBITDAX	54	264	72	534

Industrial Holdings Aker Solutions

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

Aker's ownership agenda

• Improve operational excellence
• Reduce complexity and costs in project execution, promote technology innovation
• Maintain capital discipline
• Focus on organic growth and partnerships

Aker's investment1)

NOK million
Value as per 31.03.15	3 969
Invested / divested in 2Q	-
Dividend received in 2Q	(136)
Value change in 2Q	328

1) Investment held through Aker Kvaerner Holding and through 6.4% direct ownership

Key figures NOK million	2Q14	2Q15	1H14	1H15
Revenues	8 060	8 048	15 542	16 548
EBITDA	608	547	1 274	1 138
Backlog			53 922	44 029

Industrial Holdings

Akastor

Oilfield services investment company with a flexible mandate for long-term value creation

5% % of gross asset value (30.06.15)

Investment value of NOK 1.3 billion

Aker's ownership agenda

• Reduce costs and adjust capacity
• Diversify customer base, improve service offering
• Maintain capital discipline
• Actively manage portfolio to enhance values

Aker's investment1) NOK million

Value as per 31.03.15	1 533
Invested / divested in 2Q	-
Dividend received in 2Q	-
Value change in 2Q	(218)

1) Investment held through Aker Kvaerner Holding and through 6.3% direct ownership

Key figures NOK million	2Q14	2Q15	1H14	1H15
Revenues	6 013	3 693	11 010	8 239
EBITDA	-127	141	265	318
Backlog			13 945	18 678

Industrial Holdings Kvaerner

Specialised oil and gas-related EPC company

Aker's ownership agenda

• Improve cost efficiency, increase productivity
• Prove competitiveness on NCS by maintaining flawless execution of order backlog
• Explore strategic options for ownership structure and industrial partnerships

Aker's investment1) NOK million

Value as per 31.03.15	463
Invested / divested in 2Q	-
Dividend received in 2Q	(51)
Value change in 2Q	(32)

1) Investment held through Aker Kvaerner Holding

Key figures NOK million	2Q14	2Q15	1H14	1H15
Revenues	2 861	3 125	6 350	6 650
EBITDA	289	109	459	210
Backlog			21 507	17 742

Industrial Holdings Ocean Yield

A maritime assets company with focus on long-term contracts

Aker's ownership agenda

• Expand and diversify portfolio, with long-term charters against solid counterparties
• Drive down cost of capital
• Maintain predictable and growing cash dividends

Aker's investment

NOK million
Value as per 31.03.15	5 084
Invested / divested in 2Q	-
Dividend received in 2Q	(109)
Value change in 2Q	1 067

Key figures NOK million	2Q14	2Q15	1H14	1H15
Revenues	62	63	122	126
EBITDA	55	56	109	111
Backlog (on EBITDA basis)			2 024	2 607

Industrial Holdings Aker BioMarine

Integrated biotech company – specialised in krill harvesting and processing

Aker's ownership agenda

• Build and expand market for krill-derived products, ingredients and applications
• Ensure operational excellence and cost awareness to enhance profitability
• Explore options to reveal underlying values and render investment more liquid

Aker's investment NOK million

Book value as per 31.03.15	1 398
Invested / divested in 2Q	-
Dividend received in 2Q	-
Value change in 2Q	-

Key figures USD million	2Q14	2Q15	1H14	1H15
Revenues	34	26	57	48
EBITDA	8	11	15	19

Industrial Holdings Havfisk

Leading whitefish harvesting company

Aker's ownership agenda

Drive operational excellence and improved profitability

Investment value of NOK 1.5 billion

• Optimise vessel and quota portfolio
• Maintain sustainable cash dividend

Aker's investment NOK million

Value as per 31.03.15	1 668
Invested / divested in 2Q	-
Dividend received in 2Q	(47)
Value change in 2Q	(127)

Key figures NOK million	2Q14	2Q15	1H14	1H15
Revenues	226	257	440	504
EBITDA	47	84	115	174

Aker Financial Investments

Financial Investments Overview

Financial Investments

Key events 2Q:

• Cash increased to NOK 3.0 billion (NOK 3.4 billion incl. liquid fund investments)
• Total value up by NOK 436 million in the quarter

Financial Investments Cash and Liquid fund investments

Key events 2Q

• Cash increased to NOK 3.0 billion:
• • NOK 354 million in dividends received
• • NOK 392 million in net changes to interest-bearing debt
• NOK 399 million in dividends paid in cash
• NOK 149 million in paid interest and operating expenses
• Underlying value increase of liquid fund investments of NOK 4.0 million to NOK 374 million in 2Q

Financial Investments Public financial investments

Value of NOK 2.0 billion

Key events 2Q

• The value of public financial investments increased by NOK 199 million, mainly due to a value increase in American Shipping Company
• Process to evaluate strategic alternatives for the two U.S. Jones Act companies ongoing, with the aim to maximise shareholder value

Key figures NOK million	4Q 14	1Q15	2Q15
AKPS	711	1 057	1 078
AMSC (incl. TRS)1)	765	696	874
Total value	1 476	1 753	1 952

1) Includes security deposits in escrow accounts related to TRS agreements

Financial Investments Real estate development (Fornebuporten)

Key events 2Q

• Office building B completed as planned, tenants have started moving in
• Construction of office building A and residential buildings progressing as planned
• Approximately 93% of retail and office space leased out
• Initiated sales process for Fornebuporten's commercial real estate

Financial Investments Other financial investments

Value of NOK 2.1 billion

Key events 2Q

• Other financial investments increased by NOK 0.1 billion to NOK 2.1 billion in 2Q
• Largest contributors are Align, Navigator Marine, Trygg Pharma, Setanta Energy, Ocean Harvest and intangible, fixed and non-interest-bearing assets
• Aim to gradually reduce exposure through exits / monetisations

Key figures NOK million	4Q 14	1Q15	2Q15
Other financial investments	2 123	2 049	2113

Aker Financial Statements

Aker ASA and holding companies Balance sheet

Amounts in NOK million	31.12.2014	31.03.2015	30.06.2015
Intangible, fixed, and non-interest bearing assets	262	267	278
Interest-bearing fixed assets	285	182	347
Investments	14 742	15 128	15 345
Non-interest bearing short-term receivables	19	22	20
Interest-bearing short-term receivables	133	170	43
Cash	2 857	2 816	2 985
Total assets	18 299	18 585	19 018
Equity	10 341	10 621	11 409
Non-interest bearing debt	1 257	1 290	521
Interest-bearing debt, internal	5	-	-
Interest-bearing debt, external	6 696	6 673	7 089
Equity and liabilities	18 299	18 585	19 018
Net interest bearing debt(-)/receivables(+)	(3 426)	(3 506)	(3 714)
Equity ratio	57%	57%	60%
Equity per share	142.9	146.8	153.5

Aker ASA and holding companies

Interest bearing items and loan guarantees

Interest bearing debt	Loan amount (MNOK)	Outstanding (MNOK)	Maturity
Bond AKER 05	850	700	2015
Bond AKER 08	500	500	2017
Bond AKER 11	1300	1 300	2018
Bond AKER 07	500	500	2019
Bond AKER 12*	1 431	1 431	2019
Bond AKER 13	1 000	1 000	2020
Bond AKER 10	700	700	2020
Bond AKER 09	1 000	1 000	2020
Bank loan (RCF)	500	0	2017
Capitalised loan fees etc.	(42)	(42)
Total	7 739	7 089

Loan guarantees	1Q 15	2Q 15
Aker BioMarine	305	305
Fornebuporten loan facility	150	150
Other	3	3
Total external	458	458

* MSEK 1 500 issue

Average debt maturity is 3.9 years

	Financial Covenants	Limit	Status per 30.06.2015
i	Total Debt/Equity1)	< 80%	61%
ii	Group Loans to NAV or Group Loans	< 50% < NOK 10 bn	4.0% NOK 0.8 bn

1) Covenant applies to Aker ASA (parent only). Reference is made to loan agreements for details.

Aker ASA and holding companies Income statement

Amounts in NOK million	2Q 2014	2Q 2015	1H 2014	1H 2015	Year 2014
Operating expenses	(50)	(52)	(108)	(103)	(223)
EBITDA	(50)	(52)	(108)	(103)	(223)
Depreciation	(4)	(4)	(7)	(8)	(15)
Non-recurring operating items	-	-	(37)	-	1
Value change	227	264	(30)	649	(1 432)
Net other financial items	436	273	388	220	354
Profit before tax	609	481	206	758	(1 316)

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.