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Aker Investor Presentation 2010
3526_rns_2010-11-04_4e3df0a1-d507-40ee-a5aa-35f4bd8dabd2.pdf
Investor Presentation
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The preferred partner
AKER
AKER ASA
Aker Status and Outlook
3Q 2010
Øyvind Eriksen, President & CEO
Trond Brandsrud, CFO
Oslo, 4 November 2010
Aker ASA Agenda
- Status and outlook
- Øyvind Eriksen, President and CEO
- Financials 3Q 2010
- Trond Brandsrud, CFO
- Q&A
1
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 2
© Aker ASA | November 2010
2
Highlights
Strategic
Aker ASA on track with development of investment portfolio companies:
- Aker Solutions: Focusing competencies, sale of Aker Marine Contractors in October
- Aker BioMarine: Partnership with Lindsay Goldberg for pharmaceutical activities
- Aker Seafoods: Split into harvesting and processing/marketing companies
Financial key figures
- NOK 19.0 bn net asset value with book equity ratio of 86 percent
- NOK 2.3 bn cash and NOK 2.0 bn gross interesting-bearing debts
- NOK 6.2 bn net interest-bearing assets
Net asset value (NAV)
1 Investments in listed shares valued at closing price for the reporting period.
Gross Asset Value 1 (NOK billion)
Funds
Financial investments
Industrial holdings
Financial investments (NOK billion)
Interest-free recvd.
Cash
Short-term recvd.
Long-term recvd.
Debt (NOK billion)
Interest-free debt
Internal debt
External debt
Active Industrial ownership
Made by Norway
3Q2013 | Status and outlook | 4
© Aker ASA | November 2010
3
This is Aker
This is Aker
Distribution of assets¹
| Industrial Holdings | Financial Investments | Funds |
|---|---|---|
| Aker Drilling (100%) | Cash | Converto Capital Mgmt (90%) |
| Aker Solutions¹ (24%) | Receivables | Oslo Asset Mgmt (69.1%) |
| Det norske¹ (45%) | Other Financial Investments | Norron Asset Mgmt² (51%) |
| Aker BioMarine¹ (83%) | ||
| Aker Dean Carbon (55%) |
Ownership as of 30.09.10
¹ Listed on Oslo Stock Exchange
² Under establishment
302010 | Status and outlook | 6
© Aker ASA | November 2010
This is Aker
Distribution of assets¹
| Industrial Holdings | Financial Investments | Funds |
|---|---|---|
| See slide 7 | See slide 9 | See slide 8 |
| 30.09.10 | 10.4 bn (48%) | 8.4 bn (39%) |
| 30.06.10 | 9.5 bn (45%) | 8.9 bn (42%) |
¹ Value adjusted for Aker ASA and holding companies
302010 | Status and outlook | 6
© Aker ASA | November 2010
4
Overview of Aker assets
Industrial holdings
- Aker Solutions
- Value increase of 18.6 per cent
- Adjusted for put/call option -0.8 bn
- Aker Drilling
- Book value (not listed)
- Det Norske
- Value increase of 10.7 per cent
- Aker BioMarine
- Value reduced by 3.1 per cent
- Aker Clean Carbon
- Book value (not listed)
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 7
© Aker ASA | November 2010
Overview of Aker assets
Funds
- Converto Capital Fund
- Investment portfolio value increase of 3.8 per cent in 3Q
- AAM Absolute Return Fund
- Result minus 0.54 in NOK denominated tranche in 3Q
- Result minus 1.04 in USD denominated tranche in 3Q
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 8
© Aker ASA | November 2010
5
Overview of Aker assets
Financial Investments
- Strong liquidity position
- NOK 2.3 bn in cash, down from NOK 2.5 bn due to i.a. repayment of bond loans
- Long-term interest-bearing items
- Reduced by NOK 0.3 bn mainly as result of unrealised currency rate changes
Active Industrial ownership
Made by Norway
3C2015 | Status and outlook | 8
© Aker ASA | November 2010
The preferred partner
Aker
Industrial holdings
6
Industrial holdings
Aker Solutions
Global engineering & construction services, technology products and integrated solutions
% of gross asset value (30.09.10)
Aker's agenda
- Contribute to strategy development for business activities
- Identify and develop structural opportunities (M&A)
- Identify opportunities for operational improvements
- Simplify structure – increase transparency
| Key figures * | 3Q09 | 3Q10 | 2009 |
|---|---|---|---|
| Revenues | 12 565 | 12 280 | 54 077 |
| EBITDA | 1 008 | 880 | 4 368 |
| Backlog | 56 453 | 58 488 | 56 276 |
*In NOK million
Key events Q3
- Aker Solutions announced sale of Aker Marine Contractors and became shareholder in Ezra
- Strategy process near completion
- P&C separation process continues as planned
- CEO recruitment process on-going
| Active industrial ownership
Made by Norway | 3Q09 | 3Q10 | 2009 |
| --- | --- | --- | --- |
| | NOK bn | | |
| | Equity | 3.5 | |
| | Receivables | 3.2 | |
% of gross asset value (30.09.10)
Key events Q3
- Aker Barents performing deep-water drilling for Shell at Haltenbanken
- Aker Spitsbergen upgraded as per plan and returned to operations for Statoil from yard stay in early August
- Extension of lease for Aker Barents from July 2012 to July 2014, with new 2 year option
Aker's Agenda
- Sustain stable and efficient operations for both rigs
- Make values and competencies visible
- Evaluate strategic alternatives
| Key figures* | 3Q09 | 3Q10 | 2009 |
|---|---|---|---|
| Revenues | 230 | 509 | 764 |
| EBITDA | 33 | 259 | (115) |
*In NOK million
Active industrial ownership
Made by Norway
3Q2010 | Status and outlook | 12
© Aker ASA | November 2010
7
Aker Drilling
Contract Backlog USD 1.3 billion
Day rate two rigs
Operating expenses per day two rigs
USD 1.0 million
USD 0.4 million
Active industrial ownership
Made by Norway
3Q2010 | Status and outlook | 13
© Aker ASA | November 2010
Industrial holdings
Det norske
Second largest oil company on Norwegian continental shelf in terms of exploration acreage and drilling
Key events Q3
- Refocused exploration strategy as the basis for continued high exploration activity and extended rig contract
- 2 high impact wells (Stirby and Dalsnuten) spudd
- Frøy investment decision rescheduled
- Draupne area potential increased
The first flare from Draupne on Songs Sista
Aker's agenda
- Focus on production growth
- Reach investment decision for the Frøy development which meets Aker's criteria
- Maintain high level of exploration activity
3Q 2010 figures to be published on 5 November
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 14
© Aker ASA | November 2010
8
Industrial holdings
Aker BioMarine
Integrated biotech company – uniquely positioned for krill harvesting and processing
Equity
NOK bn
0.9
% of gross asset value (30.09.10)
Key events Q3
- Partnership with Lindsay Goldberg, Epax acquired
- Sales growth for Superba™ and Qrill™ continues
- Quarterly cash flow from operations positive for first time
Aker's agenda
- Efficient operations and organic growth
- Reinforce important value drivers:
- Increased sales
- New geographic markets (USA, EU, Asia)
- Development of pharmaceutical ingredients
| Key figures* | 3Q09 | 3Q10 | 2009 |
|---|---|---|---|
| Revenues | 42 | 96 | 141 |
| EBITDA | (39) | 19 | (130) |
- in NOK million
3Q2010 | Status and outlook | 15
© Aker ASA | November 2010
Industrial holdings
Aker Clean Carbon
Global provider of cost-effective CO₂ capture technology and solutions
Equity
NOK bn
0.1
% of gross asset value (30.09.10)
Key events Q3
- Technology Centre Mongstad (TCM) and Longannet FEED progress according to plan
- New FEED contract for ENEL in Italy commenced
Aker's agenda
- Further develop business model
- Identify strategic partners
- Win FEED contracts
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 16
© Aker ASA | November 2010
9
The preferred partner
Aker
Funds
Funds
Company overview
Converto Capital Management
- Aker owns 90 percent
- Established in 2009 to manage Converto Capital Fund
- Team of dedicated investment professionals located in Oslo
Converto Capital Fund
- Equity under management NOK 1.2 bn
- Aker owns 99.8 per cent
- 6 larger + 4 smaller portfolio companies within seafood, offshore & US Jones Act shipping and shipbuilding
Oslo Asset Management
- Aker owns 50.1 percent
- Specialized global long/short equity fund
- Team of dedicated professionals located in Oslo
AAM Absolute Return Fund
- Hedge fund
- Total equity under management NOK 2.38 bn (per 30.09.10)
- Aker owns 13 percent (NOK 298 million)
Norron Asset Management
- Under establishment
- Aker will own 51 percent
- Team of experienced partners with proven track records
- Located in Stockholm
Funds
- To be launched late 2010/early 2011
1
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 18
© Aker ASA | November 2010
10
Funds
Converto Capital Fund
Investments updates
- Aker Seafoods restructured into two separate companies;
- Aker Seafoods (harvesting)
- Norway Seafoods (marketing/processing)
- Aker Philadelphia Shipyard
- Increased ownership from 50.3 to 67.1 per cent
- Actively seeking new orders and capital to commence construction of NB 017 and NB 018
- Bjørge
- Restructuring, demerger plan approved
- Aker Floating Production
- 99.4 per cent uptime on Dhirubhai-1
Active Industrial ownership
Made by Norway
302010 | Status and outlook | 18
© Aker ASA | November 2010
The preferred partner
AKER
Aker Financials
11
Aker ASA and holding companies
Balance sheet
| (in NOK million) | 31.12 | 30.06 | 30.09 |
|---|---|---|---|
| 2009 | 2010 | 2010 | |
| Tangible and non-tangible fixed asset | 905 | 627 | 657 |
| Long-term interest bearing items | 7 051 | 6 114 | 5 844 |
| Long-term financial assets | 9 426 | 9 111 | 9 193 |
| Other current assets | 209 | 191 | 196 |
| Short-term interest bearing items | 104 | 16 | 18 |
| Cash and cash equivalents | 2 694 | 2 531 | 2 347 |
| Total assets | 20 389 | 18 590 | 18 254 |
| Shareholder's equity | 16 377 | 15 987 | 15 763 |
| Non-interest bearing liabilities | 1 113 | 468 | 442 |
| Interest bearing liabilities (internal) | 373 | 22 | 20 |
| Interest bearing liabilities (external) | 2 526 | 2 114 | 2 029 |
| Equity and liabilities | 20 389 | 18 590 | 18 254 |
| Net interest bearing debt(-)/receivables(+) | 6 950 | 6 525 | 6 160 |
| Equity ratio | 80% | 86% | 86% |
Active industrial ownership
Made by Norway
3Q2010 | Status and outlook | 22
© Aker ASA | November 2010
Aker ASA and holding companies
Interest bearing debt and commitments
Interest bearing debt
| NOK mill | Maturity | |
|---|---|---|
| Bond AKER 02 | 410 | 2012 |
| Bond AKER 04 | 500 | 2012 |
| Sea Launch (guarantee) | 244 | 2010 |
| Bank debt | 850 | 2014 |
| Other | 25 | |
| Total external | 2 029 | |
| Internal debt | 20 | |
| Total | 2 049 |
Other financial commitments
| NOK mill | |
|---|---|
| Guarantee AKD bonds | 1 500 |
| Guarantee AKBM bonds | 305 |
| Other guarantees | 96 |
| Loan guarantees Aker ASA | 1 901 |
| AKPS (USD 20m) | 117 |
| TH Global (GBP 14m) | 130 |
| Other parent & holding | 247 |
| Put option Aker Holding | 1 767 |
| Total | 3 915 |
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 23
© Aker ASA | November 2010
Investor and SAAB
Put option against Aker ASA
| Investor and SAAB have a put option of 11 023 361 shares against Aker ASA | ||
|---|---|---|
| 30.06 | Price per share | Amount in NOK million |
| 2011 | 160.16 | 1 767 |
| 2012 | 167.44 | 1 847 |
| 2013 | 174.72 | 1 928 |
12
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 24
© Aker ASA | November 2010
13
Aker ASA and holding companies
Profit and loss statement
| (in NOK million) | 3Q 2009 | 3Q 2010 | YTD 2009 | YTD 2010 |
|---|---|---|---|---|
| Sales gains | - | - | 391 | - |
| Operating expenses | (39) | (46) | (141) | (146) |
| EBITDA | (39) | (46) | 250 | (146) |
| Depreciation | (4) | (4) | (13) | (11) |
| Value change | 30 | 72 | (51) | (962) |
| Sea Launch guarantee liab. | - | - | (776) | - |
| Net other financial items | (95) | (305) | (170) | 560 |
| Profit before tax | (108) | (283) | (420) | (559) |
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 25
© Aker ASA | November 2010
Industrial Holdings
Financial investments
Funds
Continued focus on development of portfolio companies
Active Industrial ownership
Made by Norway
3Q2010 | Status and outlook | 26
© Aker ASA | November 2010
14
Q&A
Active industrial ownership
Made by Norway
3Q2010 | Status and outlook | 27
© Aker ASA | November 2010
Active industrial ownership
Made by Norway
3Q2010 | Status and outlook | 28
© Aker ASA | November 2010
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.
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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.
Active Industrial ownership Made by Norway
302010 | Status and outlook | 29 © Aker ASA | November 2010