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Aker Investor Presentation 2010
3526_rns_2010-02-25_8bd0851a-b311-4681-a84b-74a495d8a1c0.pdf
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The preferred partner
AKER
Aker
Status and outlook
Fourth quarter and full year 2009
Øyvind Eriksen, President & CEO
Olav Revhaug, CFO
Oslo, 25 February 2010
4Q09 highlights
Increased values, increased dividend
- Strategy, structure
- Det norske merger completed, Aker owns 40.4 per cent
-
Amendment to Aker Holding agreement
-
Operational
- Both Aker Drilling rigs in operation by end Feb 2010
- Aker Solutions NOK 4.4 bn EBITDA in 2009, NOK 2.60 per share dividend proposed
-
Det norske awarded 10 new licences, operator for 6. Frøy field development project re-initiated with expected investment decision second half 2010
-
Financial
- Board's dividend proposal: NOK 8 per share (3 % of NAV)
- NOK 19.5 billion NAV at year-end, NOK 1 billion (5.4 %) net increase in 2009
- Balance sheet strong: Equity ratio 80 %, Cash ≈ Debt
A
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Aker ASA and holding companies
Key indicators
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© Aker ASA | February 2010
Aker ASA and holding companies
NAV changes in 2009
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Aker ASA
Dividends
1 As of beginning of the year
Extract, please see web and annual report for full text
Dividend policy 2
The company's objective is to pay annual dividends of 2-4 per cent of the company's net asset value (NAV)
Active industrial ownership
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© Aker ASA | February 2010
This is Aker
Treasury
ind corporate
finance etc
Ownership as of 31.12.09
1 Listed on Oslo Stock Exchange
2 Managed by Converto Cap Mgmt
3 Managed by Aker Asset Management
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© Aker ASA | February 2010
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This is Aker
Distribution of assets¹
(market values at 31.12.09)
¹ Aker ASA and holding companies
² Other treasury incl tangible, non-tangible fixed assets and
other long-term financial assets
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© Aker ASA | February 2010
Overview of Aker assets
Industrial holdings
- Industrial holdings increased 41% in 2009: Stock market changes and new investments
- AKSO shares up 50 per cent to 75.45 at year end 2009
- AKBM shares nearly doubled to 10.50 at year end 2009
- Invested NOK 1.1 billion in DETNOR shares before merger with AKX
- AKD unlisted, no change in value through the year
¹ Net value of shares and judicial option
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Overview of Aker assets
Financial holdings
- Converto Capital Fund effective 1 July 2009. Fund returned 6.9% to year-end.
- AAM Absolute Return Fund returns: 5.9 per cent in USD tranche, 7.4 per cent in NOK
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© Aker ASA | February 2010
Overview of Aker assets
Treasury
Cash 2.5
Equivalents 0.2
Other current assets 0.2
Short-term interest bearing assets 0.1
Aker Solutions 1.0
Aker BioMarine¹ 0.4
Aker Drilling 0.2
Non-Aker 0.3
Aker Drilling 2.8
Aker Floating 1.4
Aker BioMarine¹ 0.5
Other 0.5
¹ Aker expects to convert NOK 473 net receivable on Aker BioMarine to equity as part of planned refinancing of this company.
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Aker perspectives
Building industry through the cycles
... on the fundament of a strong balance sheet
Oil price
(Brent blend USD/bbl)
145
64%
Share of Aker assets invested in and exposed to oil and oil services
Stock market
(OSEBX index)
523
33%
Share of Aker assets invested in listed shares
Currency
( NOK vs USD )
8
5
4
3
2
1
0
Jan. 08 Jul. 08 Jan. 09 Jul. 09 Jan. 10
The preferred partner
Aker
Holdings overview
AKER ASA
7
Industrial holdings
Aker Solutions
Global engineering & construction services, technology products and integrated solutions
% of gross asset values (31.12.09)
Aker's view and priorities
- Record results in 2009, board proposed dividend NOK 2.60 per share. Stable order backlog, approx 1 x 2009 revenues
- Well placed in deepwater & harsh environment megatrends
- Simplify structure, improve visibility and grow high value, high potential business segments. Drive continuous improvement in quality and customer relations
Transactions, chronology
| April 04 | Established after 3-way split of 'old' Kvaemer. Listed at 25.30 NOK per share |
|---|---|
| Dec 06 | NOK 3 bn sale of Pulping & Power |
| June 07 | Ownership restructured. Aker Holding established in NOK 6.4 bn transaction |
| April 09 | Expansion in deepwater well services and operations, NOK 1.4 bn transaction |
| Key figures | 4Q08 |
| --- | --- |
| Revenues | 15 455 |
| EBITDA | 103 |
| Backlog | 58 016 |
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Industrial holdings
Aker Drilling
Owns and operates two highly sophisticated drilling rigs for deepwater and arctic operations
% of gross asset values (31.12.09)
Aker's view and priorities
- Aker Drilling well positioned: Very few rigs offer similar capacity for deepwater and arctic drilling
- Both rigs are now working. Successful operations will unlock future opportunities
- Convertible bond to be refinanced, Aker prepared to provide additional funding in first year of operation
Transactions, chronology
| Sept 05 | Design and construction contracts awarded to Aker Solutions |
|---|---|
| Dec 05 | IPO and listing on Oslo Stock Exchange, delisted in Februar 2008 |
| Aug 09 | Rigs completed, contracts commence |
| Feb 10 | Both rigs working |
| Key figures | 4Q08 |
| --- | --- |
| Revenues | - |
| EBITDA | -79 |
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Aker Drilling
Operating performance
Aker Barents
Aker Spitsbergen
Industrial holdings
Det norske
Second largest oil company on Norwegian continental shelf in terms of exploration acreage and drilling
6.6%
NOK bn
Equity 1.5
After acquisition of shares from DNO in 4Q
% of gross asset values (31.12.09)
Aker's view and current priorities
- Ambition to grow production organically to 15 - 20,000 b/d within 5 years
- Plans Frøy field development project approval in second half 2010
- Dual exploration strategy: High-risk high-reward frontier exploration and continuous focus on mature area
Transaction, chronology
Dec 06 Aker Exploration (AKX) established, pre-qualified as licence holder
May 09 Aker acquires 18.2% of Det norske shares
Sept 09 AKX and Det norske enter into merger agreement. Aker acquires additional shares in Det norske
Dec 09 Merger completed
| Key figures | 4Q08 | 4Q09 | 2008 | 2009 |
|---|---|---|---|---|
| Revenues | 364 | 74 | 635 | 265 |
| Profit after tax | 236 | -379 | 225 | -521 |
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Industrial holdings
Aker BioMarine
Integrated biotech company – uniquely positioned for krill harvesting and processing
% of gross asset values (31.12.09)
Aker's view and priorities
- Aker confirmed intention to participate in pending balance sheet restructuring, converting NOK 473 million net receivable to equity
- Has achieved efficient and sustainable harvesting. Current focus: Grow market and market shares
Transactions, chronology
2006 Company established after restructuring of Aker's deepsea fishing division
Dec 06 NOK 1.2 bn private placement at NOK 57 per share
Aug 08 Strategy revisited: Focus on Omega-3 value chain
2009 Launch of Superba oil in Norway, break through for Superba Krill in the US
| Key figures | 4Q08 | 4Q09 | 2008 | 2009 |
|---|---|---|---|---|
| Revenues | 18 | 50 | 85 | 145 |
| EBITDA | -54 | -36 | -152 | -147 |
Industrial holdings
Aker Clean Carbon
Global provider of cost-effective CO2 capture technology and solutions
% of gross asset values (31.12.09)
Aker's view and priorities
- Special technology and project execution capability in emerging CCS industry
- Short term opportunities mainly related to pilot projects in Norway and the UK
- Longer term opportunities created by EU and US drive to develop full scale carbon capture and storage projects
Transaction, chronology
Jan 08 Company established by Aker and Aker Solutions 70/30 ownership
Aug 08 SOLVit research program established with Sintef and other partners
Oct 08 Mobile Test Unit start capturing carbon at Norwegian test site, currently in Scotland (see photo)
Feb 09 Wins contract to build amine-based CCS pilot at Mongstad tech centre (TCM)
Apr 09 Aker Solutions increases ownership to 50 per cent
Jan 10 Start construction at Mongstad TCM
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© Aker ASA | February 2010
The preferred partner
AKER
Aker Financials
Fourth quarter and full year 2009
Aker ASA and holding companies
Balance sheet
| (in NOK million) | 31.12
2008 | 31.3
2009 | 30.6
2009 | 30.9
2009 | 31.12
2009 |
| --- | --- | --- | --- | --- | --- |
| Tangible and non-tangible fixed asset | 1 483 | 1 482 | 1 396 | 1 400 | 905 |
| Long-term interest bearing items | 3 834 | 4 605 | 6 815 | 6 741 | 7 051 |
| Long-term financial assets | 8 710 | 8 297 | 8 712 | 8 927 | 9 426 |
| Other current assets | 297 | 541 | 954 | 424 | 209 |
| Short-term interest bearing items | 1 622 | 1 557 | 343 | 445 | 104 |
| Cash and cash equivalents | 4 704 | 3 357 | 2 086 | 3 004 | 2 694 |
| Total assets | 20 650 | 19 839 | 20 306 | 20 941 | 20 389 |
| Shareholder's equity | 18 105 | 17 688 | 17 664 | 17 516 | 16 377 |
| Non-interest bearing liabilities | 958 | 769 | 497 | 527 | 1 113 |
| Interest bearing liabilities (internal) | 559 | 356 | 355 | 355 | 373 |
| Interest bearing liabilities (external) | 1 028 | 1 026 | 1 790 | 2 543 | 2 526 |
| Equity and liabilities | 20 650 | 19 839 | 20 306 | 20 941 | 20 389 |
| Net interest bearing debt(-)/assets(+) | 8 573 | 8 137 | 7 099 | 7 292 | 6 950 |
| Equity ratio | 88 % | 89 % | 87 % | 84 % | 80 % |
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© Aker ASA | February 2010
Aker ASA and holding companies
Debt and liabilities overview
Interest bearing debt
| NOK mill | Maturity | |
|---|---|---|
| Bond AKER 01 | 271 | 2010 |
| Bond AKER 02 | 410 | 2012 |
| Bond AKER 03 | 500 | 2012 |
| Sea Launch (guarantee) | 470 | 2010 |
| Bank debt | 850 | 2014 |
| Other | 25 | |
| Total external | 2 526 | |
| Internal debt | 373 | |
| Total | 2 899 |
Interest bearing assets
| NOK mill | |
|---|---|
| Short-term int-bear. | 104 |
| Cash + cash eqiv. | 2 694 |
| Interest-bearing fixed assets | 7 051 |
| Total | 9 849 |
| Net int-bearing items | 6 950 |
| --- | --- |
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4Q09 | Status and outlook | 21 © Aker ASA | February 2010
Aker ASA and holding companies
Profit and loss statements
| (in NOK million) | 4Q 2008 | 1Q 2009 | 2Q 2009 | 3Q 2009 | 4Q 2009 | Year 2008 | Year 2009 |
|---|---|---|---|---|---|---|---|
| Sales gains | - | - | 391 | - | - | 346 | 391 |
| Operating expenses | (63) | (59) | (43) | (39) | (87) | (192) | (229) |
| EBITDA | (63) | (59) | 348 | (39) | (87) | 154 | 162 |
| Depreciation | (5) | (4) | (5) | (4) | (4) | (18) | (17) |
| Exceptional op. items | - | - | - | - | (447) | - | (447) |
| Value change Sea Launch | (5 586) | (347) | (510) | 30 | 154 | (5 586) | (673) |
| Net other financial items | 18 | (38) | 303 | (95) | (205) | 624 | (35) |
| Profit before tax | (5 636) | (448) | 137 | (108) | (589) | (4 826) | (1 010) |
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Aker Drilling
Debt structure
(as of 31.12.09)
all amounts in USD million unless other stated
Approx USD 1 million dayrate for both rigs combined
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4Q09 | Status and outlook | 25 © Aker ASA | February 2010
Aker ASA and holding companies
Valuation of Aker Drilling
Aker Drilling balance sheet 31.12.09 (all amounts in USD million)
| Aker Spitsbergen | 942 |
|---|---|
| Aker Barents | 905 |
| Deposits | 1 218 |
| Other assets | 199 |
| Total assets | 3 264 |
| --- | --- |
| Equity | 522 |
| Bank debt | 695 |
| Eksportfinans | 1 218 |
| Convertible | 140 |
| Aker | 484 |
| Other liabilities | 205 |
| Total equity and liabilities | 3 264 |
| --- | --- |
Value of Aker rigs according to IFRS impairment test
Feb 2009 USD 1 500 bn at 6.90 = NOK 10.4 bn
Feb 2010 USD 1 847 bn at 5.75 = NOK 10.6 bn
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4Q09 | Status and outlook | 26 © Aker ASA | February 2010
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Industrial Holdings
- Further clarifying owner's agenda, setting more ambitious targets
- Chase improvement initiatives and pursue structural opportunities
Treasury
Financial Holdings
- Converto team play key role in Bjørge and Aker Seafoods restructuring
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© Aker ASA | February 2010
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Aker group
IR Contacts
| Company (Ticker) | Name | Phone (dir line) | |
|---|---|---|---|
| Aker | |||
| (AKER) | Geir Arne Drangeid Communications & IR | +47 24 13 00 65 | [email protected] |
| Aker | Olav Revhaug CFO | +47 24 13 00 00 | [email protected] |
| Aker Solutions | |||
| (AKSO) | Lasse Torkildsen SVP Investor relations | +47 67 51 30 39 | [email protected] |
| Aker Seafoods | |||
| (AKS) | Gunnar Aasbø CFO | +47 24 13 01 81 | [email protected] |
| Aker Philadelphia Shipyard | |||
| (AKPS) | Jeffrey Theisen CFO | +1 (215) 875-2678 | [email protected] |
| Aker Floating Production | |||
| (AKFP) | David Bandele CFO | +47 22 94 73 91 | [email protected] |
| Aker Biddlarine | |||
| (AKBM) | Fredrik Nygaard CFO | +47 24 13 00 05 | [email protected] |
| Det norske oljeselskap | |||
| (DETNOR) | Knut Evensen Investor relations | +47 95 07 76 22 | [email protected] |
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Disclaimer
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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.
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