Aker — Investor Presentation 2014

Jul 18, 2014

Second-quarter results 2014

Oslo | 18 July 2014

Highlights | Second-quarter results

• Dividend : NOK 940 million paid in accordance with our dividend policy
• Net asset value: NOK 24.2 billion in 2Q 2014 vs. NOK 22.9 billion in 1Q 2014, representing a 10% increase when adjusted for dividend paid in the quarter
• Cash: NOK 3.1 billion in 2Q 2014 vs. NOK 3.5 billion in 1Q 2014
• Upstream cash: NOK 671 million from underlying portfolio dividend payments from Aker Solutions, Kvaerner, Ocean Yield and Financial Investments, including NOK 117 million in dividend distribution from AKPS
• Return: Aker share gained 32% (adjusted for dividend) to NOK 242 vs. 10% gain in OSEBX

▪ Portfolio events:

• Aker Solutions to demerge into two separate listed entities
• Det norske to acquire Marathon Oil Norway for a cash consideration of USD 2.1 billion

Aker ASA and holding companies NAV increased by 10% in 2Q 2014 (adj. for dividend)

NOK billion

Note: Changes in share values include the effect of dividend received.

Shareholder return of 32%, strong balance sheet

Net asset value

NOK per share

Net asset value

NOK billion

Aker ASA and holding companies 53% of gross assets related to oil and gas

Aker ASA and holding companies This is Aker

NOK billion, as per 30.06.2014

Industrial Holdings				Financial Investments
	Aker Solutions1))	34.5%	10.1	3.1	Cash
	Det norske	50%	4.7	0.7	Liquid fund investments
	Ocean Yield	73.2%	3.9	0.4	Receivables excl. Fornebuporten
	Aker BioMarine2)	99%	1.7	1.6	Fornebuporten2) (receivables & invest.)
	Kvaerner3)	28.7%	1.0	0.5	Equity and other financial investments
	Havfisk	73.2%	0.7	2.8	Converto Capital Fund
			22.1	9.1	1) Owned partly through Aker Kvaerner Holding, in which Aker has a 70% ownership interest, giving Aker a 28.2% stake in Aker Solutions. Additionally, Aker currently has a direct ownership interest in Aker Solutions of 6.3%.
		Net asset value		24.2	2) Reflected at book value. 3) Owned through Aker Kvaerner Holding, in which Aker has a 70% ownership interest.

Aker ASA and holding companies Growing dividend supported by accelerating upstream cash flow

NOK million

1) As per 17.07.14, dividend payments totaling NOK 859 million had been approved. The remaining is estimated based upon the companies' stated dividend policies

2) Dividends payments from portfolio companies in Converto Capital Fund

Upstream dividend payments

	2014	2015	2020
Aker Solutions			
Akastor		?	?
Kvaerner			
Ocean Yield			
Aker BioMarine			
Havfisk			
Det norske		?	

Industrial Holdings NOK 2.4bn underlying value increase in 2Q 2014

71% % of gross assets

Industrial Holdings

NOK billion

Havfisk Kvaerner

Aker Industrial Holdings

Industrial Holdings Aker Solutions

Global oil services company providing services, technologies, product solutions and field life solutions

Aker's ownership agenda

• Ensure successful implementation of demerger
• Focus on increasing shareholder returns
• New Aker Solutions Focus on execution; realise operational and commercial efficiencies; improve margins, earnings predictability and ROCE
• Akastor Focus on operations and transactions; flexible mandate to maximise long-term shareholder value

Aker's investment1)

NOK million
Value as per 31.03.2014	8 735
Invested / divested in 2Q	87
Dividend received in 2Q	(380)
Value change in 2Q	1 638

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

Key figures2) NOK million	2Q13	2Q14	1H13	1H14
Revenues	11 032	12 956	21 344	24 185
EBITDA	786	429	1 553	1 476
Backlog			56 801	67 706

18 July 2014 AKER ASA | Second-quarter and first-half results 2014

Industrial Holdings

Det norske

Exploration & Production company on the Norwegian continental shelf

Aker's ownership agenda

• Implement financing program as planned
• Successfully integrate Marathon Norway, maximising organisational effectiveness
• Execute Ivar Aasen project on time and on budget
• Actively manage portfolio to enhance values
• Ensure solidand stable operational performance
• Assess introduction of annual dividend

NOK million
Value as per 31.03.2014	4 410
Invested / divested in 2Q	-
Dividend received in 2Q	-
Value change in 2Q	302

Key figures NOK million	2Q13	2Q14	1H13	1H14
Revenues	286	454	366	612
EBITDAX	143	325	162	422

Industrial Holdings Ocean Yield

A maritime assets company with focus on long-term contracts

Aker's ownership agenda

• Expand and diversify portfolio of maritime assets within oil service and industrial shipping
• Continue to build backlog, with long-term charters against solid counterparties
• Continue to drive down cost of capital
• Deliver competitive returns to shareholders through predictable and growing cash dividends

NOK million
Value as per 31.03.2014	3 606
Invested / divested in 2Q	-
Dividend received in 2Q	(73)
Value change in 2Q	348

Key figures USD million	2Q13	2Q14	1H13	1H14
Revenues	60	62	117	122
EBITDA	51	55	99	109

Industrial Holdings Aker BioMarine

Integrated biotech company – specialised in krill harvesting and processing

6% % of gross asset value (30.06.14) Book value of NOK 1.7 billion

Aker's ownership agenda

• Build and expand the market for krill-derived products, ingredients and applications
• Further develop non-krill related pharmaceutical assets for future realisation
• Explore options to further reveal underlying values and render investment more liquid
• Generate upstream cash flow to Aker

Book value as per 31.03.2014	1 743
Invested / divested in 2Q	-
Dividend received in 2Q	-
Value change in 2Q	-

Key figures USD million	1Q14	2Q14	1H14
Revenues	23	34	57
EBITDA	7	8	15

Industrial Holdings Kvaerner

Specialised oil and gas-related EPC company

Aker's ownership agenda

• Prioritise securing key topside and jacket contracts in the home market
• Strengthen delivery model by actively pursuing competitive partnerships
• Extract value from backlog through project delivery on time, on budget and according to specifications
• Secure dividend policy through solid operating performance , cost efficiency and margin expansion

Aker's investment1)

NOK million

Value as per 31.03.2014	989
Invested / divested in 2Q	-
Dividend received in 2Q	(47)
Value change in 2Q	31

1) Investment held through Aker Kvaerner Holding

Key figures2) NOK million	2Q13	2Q14	1H13	1H14
Revenues	3 278	2 861	5 941	6 350
EBITDA	165	289	276	459
Backlog	-	-	28 147	21 507

18 July 2014 AKER ASA | Second-quarter and first-half results 2014

Industrial Holdings Havfisk

Leading whitefish harvesting company

Aker's ownership agenda

Continue to improve operational performance and profitability

Investment value of NOK 0.7 billion

• Optimise vessel and quota portfolio
• Recruite new CEO
• Explore options to further reveal underlying values
• Introduce annual dividend

NOK million
Value as per 31.03.2014	614
Invested / divested in 2Q	-
Dividend received in 2Q	-
Value change in 2Q	127

Key figures NOK million	2Q13	2Q14	1H13	1H14
Revenues	157	226	329	440
EBITDA	32	47	73	116

Aker Financial Investments

Financial Investments NOK 3.0bn realization target on track

% of gross assets

Financial Investments

NOK billion

Key events 2Q:

• Cash decreased to NOK 3.1 billion vs. NOK 3.5 billion in 1Q
• Underlying value decrease of approximately NOK 130 million related to the other financial investments
• On track to deliver on the communicated NOK 3.0 billion divestment programme within 2015

Financial Investments Cash and Liquid fund investments

Value of NOK 3.8 billion

Key events 2Q

• Cash decreased by NOK 0.4 billion to NOK 3.1 billion: - NOK 940 million paid in dividends to shareholders + NOK 500 million dividend from Industrial Holdings
• • NOK 438 million distribution from Converto
• Value of Aker's fund investments in AAM Absolute Return Fund and Norron Target and Select funds was NOK 708 million, on par with levels from 1Q

Financial Investments Fornebuporten real estate

Receivable and equity investment of NOK 1.6 billion

Key events 2Q

• Construction of office and residential buildings at Fornebuporten progressing as planned
• More than 75% of retail and office space leased out by end of 2Q, with more leases in the pipeline
• Construction of Aberdeen business park underway, forward sale to institutional buyer expected by end of 2014

Financial Investments Converto Capital Fund

Value of NOK 2.8 billion

Key events 2Q

• Total assets under management reduced by NOK 0.5 billion to NOK 2.8 billion, primarily due to capital repayment of NOK 438 million to Aker and a decline in the value of Aker Philadelphia Shipyard investment
• Establishment of Philly Tankers AS, a pure play Jones Act shipping company

Key figures NOK million	2013	1Q14	2Q14
AKPS	1 017	1 411	1 151
AMSC (incl. TRS) 1)	588	1 017	908
Other	1 171	872	692
Total asset value	2 776	3 300	2 751

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

Aker Financial Statements

Aker ASA and holding companies Balance sheet

	31.12	31.03	30.06
Amounts in NOK million	2013	2014	2014
Intangible, fixed, and non-interest-bearing assets	237	243	250
Interest-bearing fixed assets	605	598	534
Investments	15 762	15 621	15 678
Non-interest-bearing short-term receivables	59	41	21
Interest-bearing short-term receivables	15	53	76
Cash	2 459	3 519	3 095
Total assets	19 137	20 075	19 655
Equity	12 417	12 015	12 621
Non-interest-bearing debt	1 320	1 422	412
Interest-bearing debt, internal	135	-	5
Interest-bearing debt, external	5 266	6 638	6 617
Equity and liabilities	19 137	20 075	19 655
Net interest bearing debt(-)/receivables(+)	(2 321)	(2 469)	(2 916)
Equity ratio	65%	60%	64%
Equity per share	171.7	166.1	174.5

Aker ASA and holding companies Interest bearing items and loan guarantees

Interest bearing debt	NOK mill	Maturity
Bond AKER 05	808	2015
Bond AKER 08	500	2017
Bond AKER 11	1300	2018
Bond AKER 07	500	2019
Bond AKER 12	1 357	2019
Bond AKER 10	700	2020
Bond AKER 09	1 000	2022
Bank debt	500	2017
Internal debt and other	(43)
Total	6 622
Loan guarantees	2Q 14	Q1 14
Aker BioMarine	305	305
Fornebuporten loan facility	150	150
Other	3	3
Total external	458	458

	Financial Covenants	Limit	Status per 30.06.2014
i	Total Debt/Equity1)	< 80%	40%
ii	Group Loans to NAV or Group Loans	< 50% < NOK 10 bn	4.1% NOK 1.0 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 2013	2Q 2014	1H 2013	1H 2014	Year 2013
Sales gains	-	-	-	-	-
Operating expenses	(57)	(50)	(109)	(108)	(236)
EBITDA	(57)	(50)	(109)	(108)	(236)
Depreciation	(4)	(4)	(7)	(7)	(14)
Non recurring operating items	-	-	-	(37)	-
Value change	281	227	409	(30)	252
Net other financial items	477	436	497	388	822
Profit before tax	697	609	790	206	825

Aker BioMarine Financials

Balance Sheet

Amounts in USD million	31.12.2013	31.3.2014	30.6.2014
Property, plant and equipment	116	112	110
Intangible assets	67	66	67
Investments in joint ventures	65	64	62
Other assets	64	76	79
Cash and cash equivalents	7	5	4
Total assets	319	323	322
Total equity	144	142	146
Non-interest bearing debt	27	23	21
Interest-bearing debt	148	158	155
Total equity and liabilities	319	323	322

Income Statement

Amounts in USD million	FY13	1Q 2014	2Q 2014
Operating revenues	114.5	22.9	33.9
EBITDA	15.7	6.8	7.9
Depreciation and amortization	(16.3)	(5.3)	(4.2)
Other non-recurring items	(13.1)	(0.2)	0.1
Operating profit / (loss)	(13.6)	1.3	3.8
Profit / (loss) before tax	(25.7)	(2.9)	1.9

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.