Credit Investor Presentation 2019

Credit Investor
Presentation 2019
May 2019
Presenters
Svein Stoknes – Chief Financial Officer
Fredrik Berge – Investor Relations Officer
Contact IR: [email protected]
© 2019 Aker Solutions

Content
Company Overview
Strategy & Market Outlook
Financials & Recent Developments
Q&A
© 2019 Aker Solutions May 16, 2019 Slide 2

Our Vision
A leader in forging a
sustainable future for the
global energy industry
and the world it serves
15,000+ 20+
EMPLOYEES COUNTRIES
176+ 50+
YEARS OF EXPERIENCE LOCATIONS

Field Planning, Feasibility and Concept Studies
Fixed and Floating Production Systems
Engineering, Procurement and Management Assistance
Subsea Production Systems
Subsea Pumps, Compression and Processing
We deliver integrated solutions

Hook-Up and Completion
Maintenance, Modifications and Operations

from subsea to surface and through
the life of an energy asset Asset Integrity Management
Lifecycle Services
Carbon Capture and Storage
Decommissioning
Concept Pre-FEED FEED Detailed Design Fabrication Commissioning Operations Modifications Late Life Decommissioning

Our Heritage – The Development of Aker Solutions
Sale of P&C* Sale of WIS* Reorganization of Aker Solutions today
Aker Solutions
Projects &
Services
Sale of MLS* to Cargotec
2002 2010 2011 2013 2014 2016 Future
Demerger of Aker
Marine Contractors
Demerger of Aker Solutions

and Akastor
Demerger of
EPC business
Merger of Aker Maritime
and Kværner
*Notes:
WIS = Well Intervention Services
MLS = Mooring and Loading Systems
P&C = Process & Construction

Global Presence
Norway
Canada Russia
United Kingdom
United States Italy Cyprus
Qatar China
Saudi Arabia
UAE South Korea
India
Ghana Brunei
Nigeria
Republic of Congo Malaysia

Tanzania
Brazil Angola
Mozambique
Australia
15,000+ 20+ 50+

EMPLOYEES COUNTRIES LOCATIONS

SBM Offshore
LEASED FPSO
Principle Power
OFFSHORE WIND
Saipem
SURF
Collaboration Across the Value Chain
Cognite ABB
DIGITALIZATION POWER AND AUTOMATION
Alcatel
FIBER OPTIC SOLUTIONS MAN Energy Solutions
COMPRESSION

The Value of Front End
Differentiating Front End
capabilities – a key enabler
Project cost
■ Subsea and Topside expertise
■ Optimized concept
Early engagement in study and FRONT END

concept engineering – key to Ability to influence
meeting cost challenges project cost
■ Reduce costs and risks
■ Accelerate time to first oil
Time
Improving field economics
FRONT END PROJECT EXECUTION LIFE OF FIELD
and ‘design to price’
■ Cooperation and dialogue
Concept FEED E P C I C Operation
■ Moving the break-even price in a
meaningful way

Record Demand for Early-Phase Capabilities
■ All-time high of 150 Front End
awards in 2018
2018 2017
■ Strong international growth
+21%
150 124
with studies for international
markets more than doubling Total
Front-end awards
■ 11 FEEDs led to full Projects
+121%
■ Increase in studies for larger
and more complex projects International
Front-end awards 53 24
+70%
Early involvement is a key

enabler to secure more work
4Q
Front-end awards 46 27
(FEED = Front End Engineering and Design)

Digital Transformation
Driving Value
Reduce Time Improve Enhance Improve Improve

to First Oil Efficiency Quality Uptime Design Quality
Agile Concept Selection Reduced CAPEX Increased Collaboration Reduced OPEX Improved Decisions
Compressed Timelines Accelerated Engineering Reduced Risk Predictive & Preventive Incorporate operational
Maintenance experience

Life-of-Field Digital Solutions
Integrated. Innovative. Insight.
▪ Reduced Cost
▪ Increased Efficiency
▪ Improved Predictability
A New Energy Future
Floating Offshore Wind Concept
▪ 11.8% ownership in Principal Power Inc.
▪ WindFloat® – unique patented floating foundation
▪ One of only two field-proved and tested concepts
▪ Existing technology including dynamic offshore power cables,
substations, digital solutions for monitoring & remote
operations, as well as project management
Carbon Capture Utilization and Storage (CCUS)

▪ Northern Lights carbon capture and storage project for Equinor
& partners in Norway
▪ Carbon capture and utilization project for Twence at a waste-to-
energy plant in Holland
▪ Carbon capture Feasibility study for Preem at Scandinavia’s
largest oil refinery in Sweden
We create solutions to
unlock energy safely Low-carbon solutions
and sustainably for ▪ Subsea gas compression, LNG, CO2 removal, Electrification,
future generations Energy optimization, Collaboration across value chain etc.

Setting the Industry Benchmark
PROJECT CUSTOMER DESCRIPTION
• One of the largest greenfield developments offshore Norway the next decade
Johan Castberg • Providing the full Subsea Production System as well as Engineering, Procurement
and management assistance for construction of the largest FPSO offshore Norway
“Major Greenfield
• Aker Solutions has helped Equinor reduce investments by more than 50%
in the Barents Sea” (from about NOK 100 to 48bn, or breakeven from $80 USD/bbl to about $31 USD/bbl)
Kaombo • Helping Total get the world’s largest subsea development on-stream offshore Angola
• Delivering 65 vertical subsea well-sets, 19 subsea manifolds, and associated controls
“The World’s Largest systems and work-over and tie-in systems
Subsea Development” • The first deliveries started in the second quarter of 2015
Frame Agreements • Two major frame agreements, supporting Brazil's major pre-salt deepwater
developments
“One of the World's leading • Delivering 60 well-sets with vertical subsea trees, control systems, tools and spares
deepwater operators” • Delivering 8 manifolds (water/gas injection) to increase oil recovery
Brunei Shell Petroleum • Maintenance and modification management services at more than 200 offshore
installations in the South China Sea
“Maintenance and Modification
• Prolonging the life of the facilities, to support extended life-of-field
Management Services”
Mariner • Delivering engineering, construction and commissioning work for the major hook-up
phase of the Mariner oilfield development in the UK North Sea
“Largest Offshore • Also providing maintenance and modifications services through a frame agreement
Development in the UK” • Mariner is the largest new offshore development in the UK in more than a decade

Setting the Industry Benchmark (cont’d)
PROJECT CUSTOMER DESCRIPTION
• Helping Equinor put on stream one of the largest oil fields offshore Norway, which at
its peak will provide an equivalent of 25 % of all Norwegian petroleum production
• Provided feasibility and concept studies in 2012-2013
Johan Sverdrup • Executed a major FEED in 2014 which engaged one of the largest FEED teams ever
assembled by Aker Solutions
“The Making of a Giant”
• Transitioning seamlessly into a fully fledged project in 2015 to provide engineering
services, procurement and management assistance for the first phase of the
development – now into the FEED phase 2 of this development
Moho • Delivered 28 well-sets for the Moho Nord project in Congo Brazzaville
• The country’s largest oil development
“Largest Oil Development
• Several new technology qualifications delivered successfully
in Congo”
• Master Contract, FEED as first call-off – operator Chevron with ExxonMobil & Shell
Jansz • Substantial cost and efficiency gains, boosting recovery, Lower carbon footprint
• Scope includes subsea compression station as well as an unmanned power and
“International breakthrough for
control floating platform
Subsea Gas Compression” • This technology has already provided great results for Equinor at Åsgard since 2015
• The Zohr field offshore Egypt is one of the largest offshore gas fields in the world
Zohr Gas Field • Providing a record 250 km of steel-tube umbilicals, to help the most populous Arab
nation achieve self-sufficiency of natural gas
“The World’s largest
• Customers: Petrobel (Egyptian General Petroleum Corporation, EGPC) and Italian
umbilicals system” operator Eni)

Subsea Gas Compression
International Breakthrough
▪ Master Contract with FEED as first call-off

▪ Operator Chevron with ExxonMobil & Shell
▪ Boosting recovery
▪ Substantial cost and efficiency gains
▪ Significant size reduction
▪ Lower carbon footprint

Experienced Executive Management
CEO
Luis Araujo
CFO
Svein Stoknes
Strategy COO
Mark Riding Dean Watson
Customer Greenfield Brownfield Subsea Lifecycle

Front End Products
Management Projects Projects Services
Knut Nyborg Egil Boyum
Valborg Lundegaard Knut Sandvik Linda L. Aase Dean Watson
PROJECTS SERVICES
Early Client Engagement Project Execution Life-of-Field Services

HSSE – Health, Safety, Security and Environment
4.50 Total recordable injury frequency
Lost time injury frequency
4.00
3.50
3.00
2.50
2.00 1.97
1.50
1.00
0.50 0.55
We put the safety of our 0.00
people first and strive for 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
zero incidents
NOTE: the above KPIs are calculated as total number of recordable incidents per 1 million worked man-hours, incl. subcontractors
(Total recordable injury frequency: all recordable incidents incl. LTI’s, restricted work cases and medical treatment but not including first aid)
(Lost time injury frequency: incidents including work-related injuries or illnesses where a doctor or other health care professional recommend that
the employee stay home from work as a result of his / her injuries or illness, beginning the first work day after the incident)

ESG – Environmental, Social and Governance
Environmental
▪ Aker Solutions create solutions to unlock energy safely and
sustainably for future generations
▪ We have commercially ready solutions in place, to support
transition to a lower-carbon future (including cost-efficient Carbon
Capture and Storage technology, strong LNG capabilities, world-
leading subsea gas compression technology, Electrification
solutions, as well as Offshore Floating Wind technology)
Social
▪ Corporate responsibility at Aker Solutions is about making good,
sustainable business decisions to benefit the company, our
stakeholders and society
▪ Aker Solutions is committed to taking a leading role in forging a
sustainable future for the global energy industry and the world it
serves
Governance
▪ Good corporate governance at Aker Solutions shall ensure
Ensure sustainable
sustainable operations and value creation over time to the
operations and value
benefit of shareholders and other stakeholders
▪ The Code of Conduct is Aker Solutions’ key governing document, it creation over time to
outlines our ethical commitments and requirements, and sets benefit all stakeholders
expectations for personal conduct and business practices

Risk Factors – Overview
Market risk
■ Aker Solutions’ global footprint, operations and exposure to energy
markets provide both opportunities and risks
Operational risk
■ Aker Solutions is, through its business, exposed to legal, regulatory
and political risks, as well as risks associated with unethical and
criminal behavior and operational project risks
Financial risks
■ Aker Solutions is exposed to financial market risks, including but
not limited to currency- and interest rate fluctuations, counterparty
risks, liquidity risks and pricing risks
Please see appendix for further details Aker Solutions has company-
wide policies, procedures,
tools, training and
reviews, for active and
systematic risk management

Strategy and
Market Outlook

Long Term Trends Shaping the Industry
Transforming Businesses
Consolidation and Collaboration System Innovation
Alliances and M&A within OFS offering a broader scope within the value All electric modular systems, unmanned platforms, brownfield
chain. Strong focus in the industry towards collaborative approaches, tie ins, subsea compression. Working closely with our clients
especially with the customer to Co-Create solutions, especially with independents
Emergence of New Business Models Efficient Operations

Alignment of production cash flow with spend – outcome based models, Focus on zero incidents, quality and continuous
lower capex, renewed approach to life of field cost (Totex). Transition to improvement, carbon footprint, resource usage.
services Requirement to maintain industry cost competitiveness.
Low Carbon
Role of Gas Focus on Renewables

Growing operator production share of gas - LNG enabled; longer Increased focused on alternatives such as Wind, Solar
step outs, large bore systems, compression, Carbon Capture especially from existing clients
People Development
Human Capital
Increasing challenge to access and retain the best talent in a changing industry . Requires global resource management, culture development.
Changing competence in a digitalizing industry. Corporate social responsibility.
Digitalization
Digitalization
Disruptive business models, offerings and operations – data management, predictive services, analytics, digital twins

Five Strategic Themes
Winning Customer Strategic Impactful Operational World-Class
Experience Partnerships Innovation Excellence Services
• Deliver the best customer • Combine expertise with • Prioritize innovation that • Excel at delivering on our • Grow a focused world-
experience in the industry our strategic partners improves safety, environ- commitments every time class services business
• Consistently maximize life- • Deliver new sources of mental performance and • Consistently drive • Build on our strengths and
of-field value across every life-of-field value by boosts productivity operational excellence and capabilities to deliver new
touchpoint combining our strengths • New business models continuous improvement sources of value

Growing Offshore and Subsea Markets
Offshore Final Investment Decisions (FIDs) ■ Significant underinvestment past four years
150
Actual Potential ■ Record high free cash flow among E&Ps
Number of offshore FIDs
128 +18%
■ Break-even costs lowered – new projects emerging
120 114
105
100 89
78
56 62 ■ Increased sanctioning activity, despite oil price
50 46
volatility
0
2011 2012 2013 2014 2015 2016 2017 2018 2019e ■ E&P spending forecasted to increase
(Source: Rystad Energy DCube) ■ Expect markets to remain competitive near term
■ Still overcapacity in some segments
Increasing Subsea Tree Awards Following FIDs
■ AKSO well positioned in key regions going forward
Historical Estimate (Goldman Sachs)
■ Tendering for NOK 55 billion – good balance of

Number of Subsea Trees
600 547
+10%
400
418 regions and segments
301 296
247 270
203
200 167
89
0
2011 2012 2013 2014 2015 2016 2017 2018 2019e
(Source: Goldman Sachs equity research March 25, 2019)

Financials and
Recent Developments

Main Developments
Delivering solid operational results Well positioned to capture growth
■ Increased activity – 2018 revenue up 12%, 2019 ■ Solid financial position with NOK 6.9 bn liquidity buffer
revenue guidance up 10% ■ Well positioned in key regions globally
■ Stable underlying margins through the downturn ■ Streamlined organization and manufacturing set-up
■ Solid project execution – all major projects progressing ■ On track with phase 2 of cost-efficiency program
as planned
■ Scale and Operational leverage to drive margin
■ Investments in digitalization and floating offshore wind expansion
Winning new orders through differentiation Improving outlook

■ Increased order intake to NOK 25 bn in 2018 (1.0x BtB) ■ Activity is increasing, though market remains
with awards in several regions globally competitive
■ All-time high of 150 Front-end awards in 2018 ■ Tendering activity increased to NOK 55 bn
■ International breakthrough award for industry-leading ■ Simplified and standardized product portfolio to
Subsea Gas Compression with Chevron, Australia optimize field developments
■ Healthy backlog of NOK 33 bn, improves visibility ■ Building on differentiating Front-End capabilities to
capture opportunities

Key Annual Figures
(NOK billion)
Revenue EBITDA Order Intake Order Backlog NIBD/EBITDA Equity Ratio
25.2 1.8 25.4 35.1 0.2x 36%

Excl. special items
30 2.5 40 40 2.0x 40%
36% 36%
25
2.0
30 30 1.5x 30%
30%
20
1.5
15 20 20 1.0x 20%
1.0
10
0.7x
10 10 0.5x 0.6x
10%
0.5
5
0.2x
0 0.0 0 0 0.0x 0%
2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

On Track With Phase 2 of Cost-Efficiency Program
Target of 30 percent by Minimum 20 percent

end of 2017 achieved additional cost-efficiency
improvement by end of 2021
30% 20%
2015 2017 2021

Stable Underlying Margins Through Downcycle
Aker Solutions
Revenue EBITDA* Revenue
NOK billion Margin
10 9.6% 10%
8.9% 8.8%
9 9%
7.9% 8.5% 8.5%
8.1% 8.0% 7.9% 7.8%
8 8%
7.4% 7.5% 7.5%
7.0% 7.1% 7.1% 7.1% 6.8%
7 7%
6 6%
5 5%
9.2
8.5
4 8.0 7.9 4%
7.5 7.3
7.0 7.0
6.5 6.4 6.3 6.5
3 6.0 6.1 3%
5.2 5.4 5.4 5.5
2 2%
1 1%
0 0%
4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
*Excluding special items

Reporting Segments
(NOK billion)
Projects Services
7.8% 15.7%
Revenue 30 7.3%
6.9% 8% Ebitda- Revenue 8 16% Ebitda-
6.8% 12.4% 13.3% 13.6%
margin* margin*
6% 6 12%
20
4% 4 8%
25.7 6.3
10 20.6 19.9 5.0 5.1
17.7 2% 2 4.6 4%
0 0% 0 0%
2015 2016 2017 2018 2015 2016 2017 2018
Key regions: Africa, Asia, Brazil, North Sea Key regions: Africa, Brazil, Canada, North Sea
Employees: 7,188 (2017: 6,980) Employees: 5,473 (2017: 5,036)
Revenue share, 2018 EBITDA share, 2018

Services 20%
Services 34%
25.2 1.8
NOK billion NOK billion
66% Projects
80% Projects
*Ebitda excludes special items (for reference, Aker Solutions also reports an ‘Other’ segment containing the corporate center and various other items held centrally)

Order Intake and Backlog
Order Backlog by Execution Date per 1Q 2019, NOK billion Order Backlog and Intake Evolution NOK billion
16.2 Potential additional revenue from existing agreements Order backlog Order intake
50
Projects backlog Services backlog
48
3.5 40
8.2 40
37
30 35 35
4.2 4.7 31
2.5 20 23 24 25
12.7
1.8 17
3.1 10
5.7
2.4 1.6 0
2019 2020 2021 2022→ 2014 2015 2016 2017 2018
Order Backlog by Segment NOK billion Order Backlog by Market

Projects Services 1Q 2019 1Q 2018
50
12% 8% 8% 11%
40 7% Africa
11% 2%
7% 4%
30 Asia Pacific
5% North America
20
33.3 37.6 Norway
NOK billion NOK billion
United Kingdom
10
South America
0
2014 2015 2016 2017 2018 58% 68%

Cashflow and Financial Position (per 1Q 2019)
■ Cashflow from operations at minus NOK 303 million Debt Maturity Profile2 NOK million
■ Working capital1 at NOK 248 million, and minus NOK 6,000
Drawn debt Undrawn revolving credit facility
62 million when excluding the effects of IFRS 16 5,000
■ Net interest-bearing debt2 NOK 940 million 4,000
and leverage 0.5x

2,000
■ Gross debt2 of NOK 2.9 billion 1,069
1,525
■ Available liquidity NOK 6.9 billion 0

148 148
(cash NOK 1.9 billion and RCF NOK 5.0 billion) 2019 2020 2021 2022 2023
Working Capital1 NOK million Net Interest-Bearing Debt and Leverage2 NOK million, x times
Bank Covenant 3.5x
1,000 2,500 3.5x
500 2,028 3.0x

2,000
1,686 2.5x
0
1,500 2.0x
-500 1.4x
968 1.2x 970 940 1.5x
1,000
-1,000 0.8x 0.7x 475 405 1.0x
247 347 0.5x
500 0.4x 0.3x
-1,500 0.2x 0.2x 0.5x
-2,000 0 0.0x
1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19
1 See definition under Alternative Performance Measures in the Appendix 2 Excluding the effects of IFRS 16 as covenants are based on frozen GAAP

Financial Policy
Financial 1 1
policy
Financial policy
■ Net Interest-Bearing Debt / EBITDA target ≈ 1.0x
■ Bank covenants 3.5x
■ Net Interest-Bearing Debt / Equity < 0.5
Liquidity Policy
Liquidity policy
■ Dividend payments should over time amount to 30-50%
of net profit (cash dividends or share buybacks)
■ Min liquidity buffer at NOK 3 billion
■ Max 50% of total debt on floating interest basis
Foreign Exchange
Foreign Exchange Policy
policy
■ All secured contracts hedged at signing
■ All planned internal dividends hedged
1 Excluding the effects of IFRS 16 as covenants are based on frozen GAAP

Summary – Credit Highlights
■ A leader in sustainable energy solutions, building on
nearly 200 years of engineering excellence
■ Delivering subsea solutions, field design and
maintenance and modifications services
■ Leading HSSE performance in our industry
■ Lean and cost-efficient organizational setup reflecting
business workflow
■ Simplified and standardized product portfolio to
optimize field developments
■ Consistent solid execution and delivery on continuous
improvement program
■ Strong balance sheet, conservative financial policy,
disciplined capital allocation
■ Strong operational leverage bodes well for margin
expansion and free cash flow generation going forward
■ Main shareholders financially solid
■ Positive market outlook

Q&A /
Appendix

Special items and IFRS 16 Leasing
NOK million, (Gain) / Loss
Special items (EBITDA) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Onerous leases - 6 - 33 40 - - - 15 15 (0)
Restructuring (1) 81 8 (2) 86 7 5 31 (3) 39 3
Non-qualifying hedges 3 4 10 (6) 10 (3) (4) (3) (1) (11) (2)
(Gain) loss sale of PPE - - - - - (50) - - - (50) -
Other special items 6 3 2 (0) 10 5 1 2 0 8 2
Total special items EBITDA 7 95 20 24 146 (41) 2 30 12 2 3
Special items (EBIT)
Impairments (0) 5 6 148 158 14 0 1 6 22 2
Total special items EBIT 7 100 25 172 304 (27) 2 31 18 24 5
Special items to be added to reported figures to get underlying figures
NOK million
Effects of IFRS 16 Leasing 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects - - - - - - - - - - 92
Services - - - - - - - - - - 28
Other - - - - - - - - - - 20
Effect on EBITDA - - - - - - - - - - 140
Projects - - - - - - - - - - 21
Services - - - - - - - - - - 3
Other - - - - - - - - - - (1)
Effect on EBIT - - - - - - - - - - 22
Effect on Net income before tax - - - - - - - - - - (28)
Effect on Net income - - - - - - - - - - (18)
Effects included in the reported figures

General
Basis for Preparation Alternative Performance Special Items Impacting Profit Measures
This presentation provides financial
highlights for the quarter for Aker
Measures NOK million Projects
1Q 2019 1Q 2018
Services Other/eliminations
1Q 2019 1Q 2018 1Q 2019 1Q 2018
Aker Solutions
1Q 2019 1Q 2018
Revenue 5,952 4,239 1,299 1,159 5 85 7,256 5,483
Solutions, a Norwegian limited company Aker Solutions discloses alternative performance Non-qualifying hedges - - - - 0 7 0 7
listed on the Oslo Stock Exchange. The measures in addition to those normally required by IFRS (Gain)loss sale of PPE - - - - - (50) - (50)
financial information is not reported as such performance measures are frequently used by Sum of special items excluded from revenue - - - - 0 (43) 0 (43)
according to requirements in IAS 34 securities analysts, investors and other interested Revenue ex. special items 5,952 4,239 1,299 1,159 5 43 7,256 5,440
(Interim Financial Reporting) and the parties. Alternative performance measures are meant to
EBITDA 477 312 186 135 (30) (22) 634 425
figures are not audited. provide an enhanced insight into the operations, Restructuring cost 1 7 1 - 1 (0) 3 7
financing and future prospects of the company. Non-qualifying hedges - - - - (2) (3) (2) (3)
(Gain)loss sale of PPE - - - - - (50) - (50)
The same measurement principles as
presented in the Annual Report 2018 have
Profit Measures Transaction costs and other
Sum of special items excluded from EBITDA
(0)
1
4
11
-
1
-
-
2
1
1
(52)
2
3
5
(41)
been used preparing this presentation, with EBITDA and EBIT terms are presented as they are used EBITDA ex. special items 478 322 187 135 (29) (74) 636 384
the exception of accounting for lease by financial analysts and investors. Special items are
excluded from EBITDA and EBIT as alternative EBITDA margin 8.0 % 7.3 % 14.3 % 11.7 % 8.7 % 7.8 %
contracts. IFRS 16 (Leasing) has been
EBITDA margin ex. special items 8.0 % 7.6 % 14.4 % 11.7 % 8.8 % 7.1 %
implemented as of January 1, 2019. A measures to provide enhanced insight into the financial
description of the transition effects and development of the business operations and to improve EBIT 280 173 120 94 (75) (41) 325 226
accounting principles are included in note comparability between different periods. Sum of special items excluded from EBITDA 1 11 1 - 1 (52) 3 (41)
32 of the 2018 Annual Report available at Impairments - 15 - (0) 2 (0) 2 14
EBITDA is short for earnings before interest, taxes,
Sum of special items excluded from EBIT 1 26 1 (0) 3 (52) 5 (27)
https://akersolutions.com/annual-reports depreciation and amortization. EBITDA corresponds to EBIT ex. special items 281 199 120 93 (72) (94) 329 199
the “operating income before depreciation, amortization
and impairment” in the consolidated income statement in EBIT margin 4.7 % 4.1 % 9.2 % 8.1 % 4.5 % 4.1 %
The effects from implementing IFRS 16 EBIT margin ex. special items 4.7 % 4.7 % 9.3 % 8.0 % 4.5 % 3.7 %
the annual report.
Leasing are significant for Aker Solutions.
Comparative figures are not restated. The EBIT is short for earnings before interest and taxes. Net income 149 105
effects on EBITDA and EBIT are presented EBIT corresponds to “operating income” in the Sum of special items excluded from EBIT 5 (27)
in the "special items" section. consolidated income statement in the annual report. Non-qualifying hedges 3 (2)
Tax effects on special items 2 9
Margins such as EBITDA margin and EBIT margin are Net income ex. special items 158 86
used to compare relative profit between periods. Net income to non-controlling interests (1) (2)
EBITDA margin and EBIT margin are calculated as Net income ex. non-controlling interests 157 83
EBITDA or EBIT divided by revenue.
Average number of shares (in '000) 271,533 271,533
Special items may not be indicative of the ongoing Earnings per share1) 0.54 0.38
operating result of cash flows of the company. Profit Earnings per share ex. special items 2) 0.58 0.31
measure excluding special items is presented as an
1)
alternative measures to improve comparability of the Earnings per share is calculated using Net income, adjusted for non-controlling interests, divided by average number of shares
2)
underlying business performance between the periods. Earnings per share ex. special items is calculated using Net income ex. Special items, adjusted for non-controlling interests, divided by average number of shares

General
Financing Measures Gross Debt and Net Interest-Bearing Debt are measures that show the overall debt situation. Net debt
is calculated by netting the value of a company's liabilities and debts with its cash and other similar
Alternative financing and equity measures are presented as they are indicators of the company’s ability short-term financial assets.
to obtain financing and service its debts.
NOK million 1Q 2019 1Q 2018
Liquidity buffer is a measure of available cash and is calculated by adding together the cash and cash
equivalents and the unused credit facility. Current borrowings 1,125 495
Non-current borrowings 1,764 2,745
NOK million 1Q 2019 1Q 2018 Gross debt 1) 2,889 3,241
Cash and cash equivalents 1,872 2,607 Current interest-bearing receivables (30) (131)
2)
Credit facility (unused) 5,000 5,000 Non-current interest-bearing receivables (47) (27)
Liquidity buffer 6,872 7,607 Cash and cash equivalents (1,872) (2,607)
Net debt 1) 940 475
1)
Excluding effects of IFRS 16
Net Current Operating Assets (NCOA) or Working Capital is a measure of the current capital 2)
necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, Non-current interest-bearing receivables are included in Other non-current assets in
provisions and current tax assets and liabilities. consolidated balance sheet
NOK million 1Q 2019 1Q 2018 Net debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess
Inventory 320 334 the borrowing capacity of a company. The ratio shows how many years it would take for a company to
Trade and other receivables 9,694 7,251 pay back its debt, if net debt and EBITDA are held constant. The ratio is one of the debt covenants of the
Current tax assets 101 145 company. The ratio is calculated as net debt (total principal debt outstanding less unrestricted cash)
divided by EBITDA excluding certain special items (as defined in loan agreements) for the last twelve
Trade and other payables (9,235) (8,264)
month period. If a company has more cash than debt, the ratio can be negative.
Provisions (820) (841)
Current tax liabilities (121) (47) NOK million 1Q 2019 1Q 2018
Effects of IFRS 161) 309 -
Gross interest bearing debt 2,889 3,241
Net current operating assets (NCOA) 248 (1,422)
1) Cash and cash equivalents (1,872) (2,607)
Reclassification of onerous lease provisions and lease accruals for rent-free periods
Net debt 1,017 633
previously reported as part of NCOA. Starting from January 1, 2019 these amounts are
reported as part of ROU asset under IFRS 16
EBITDA last twelve months 1,879 1,589
Restructuring cost and other special items 35 94
Adjusted EBITDA last twelve months 1,914 1,684
Net debt to EBITDA (leverage ratio) 0.53 0.38

General
Order Intake Measures IFRS 16 Leasing
Order intake, order backlog and book-to-bill ratios are presented as alternative performance measures,
as they are indicators of the company’s revenues and operations in the future. Background
The new IFRS 16 Leasing standard is effective from January 1, 2019. The new leasing standard has
Order intake includes new signed contracts in the period in addition to expansion of existing contracts. significantly changed how the company accounts for its lease contracts for land, buildings and machines
For construction contracts, the order intake is based on the signed contract value excluding potential previously accounted for as operating leases. An on-balance sheet model similar to the financial leases
options and change orders. For service contracts, the order intake is based on the estimated value of in IAS 17 has been applied to all contracts that contain a lease. Sub-leases covering the major part of
firm periods in the contracts. the period in the head-lease are classified as financial. According to the company's loan agreements,
new accounting principles will not impact the current debt covenants. The company has implement the
Order backlog represents the estimated value of remaining work on signed contracts (as a reminder, lease standard using a modified retrospective method with cumulative impact recognized in retained
the backlog does not include part of the Services business, which is short cycled or book-and-turn in earnings on January 1, 2019. Comparative figures are not restated. More information about transition
nature, or potential growth or options on existing contracts). effects and accounting principles for IFRS 16 is available in note 32 in the 2018 Annual Report available
at https://akersolutions.com/annual-reports
Book-to-bill ratio is calculated as order intake divided by revenue in the period. A book-to-bill ratio
higher than 1 means that the company has secured more contracts in the period than what has been
executed in the same period. Lease Liability and Lease Asset
NOK million 1Q 2019 NOK million Mar 31, 2019 Jan 1, 20191
Order intake Revenue Book-to-bill Current lease liability 563 546
Projects - Subsea 1,418 2,439 0.6
Non-current lease liability 5,203 5,183
Projects - Field Design 2,064 3,512 0.6 Lease liabilities 5,766 5,729
Other/eliminations - 1 Right-of-use asset for land and building 4,160 4,124
Projects 3,482 5,952 0.6 Right-of-use asset for machinery and vehicles 24 26
Services 1,975 1,299 1.5 Lease receivables (non-current) 715 734
Other/eliminations 66 5 Lease receivables (current) 114 112
Aker Solutions 5,523 7,256 0.8 Lease assets 5,013 4,996
1)
The amounts as of January 1, 2019 in this table are slightly changed compared to
information given in the 2018 Annual Report to reflect more updated information. The
correction did not change the net effect on equity.

Income Statement
NOK million
Income statement consolidated 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Revenue 5,173 5,425 5,419 6,444 22,461 5,483 6,254 6,541 6,954 25,232 7,256
Operating expenses (4,817) (5,120) (5,017) (5,986) (20,941) (5,057) (5,815) (6,078) (6,471) (23,422) (6,622)
EBITDA 355 305 401 458 1,519 425 439 463 483 1,810 634
Of which related to hedging (3) (4) (10) 6 (10) 3 4 3 1 11 2
Depreciation and amortization (205) (201) (180) (205) (792) (185) (184) (179) (190) (739) (307)
Impairment (0) (5) (4) (148) (156) (14) (0) (1) (6) (22) (2)
EBIT 150 99 217 105 571 226 254 282 287 1,049 325
Net interest cost (74) (67) (50) (66) (256) (69) (58) (45) (57) (229) (105)
Foreign exchange on disqualified hedging instruments 5 12 20 3 41 2 (18) (3) 2 (16) (3)
Other financial items 10 6 (5) 32 43 (1) (5) (1) (5) (12) 9
Net financial items incl. disqualified hedging instruments (58) (48) (34) (31) (172) (68) (81) (49) (60) (258) (99)
Net income (loss) before tax 92 51 183 73 399 158 173 233 227 792 226
Income tax (30) (17) (59) (54) (160) (53) (57) (78) (50) (238) (77)
Net income (loss) for the period 62 33 124 19 239 105 117 155 178 554 149
Net income attributable to:

Equity holders of the parent company 63 23 110 25 221 103 115 136 158 511 148
Non-controlling interests (1) 10 15 (5) 18 2 2 19 20 43 1
EBITDA margin 6.9% 5.6% 7.4% 7.1% 6.8% 7.8% 7.0% 7.1% 7.0% 7.2% 8.7%
Basic earnings per share (NOK) 0.23 0.08 0.40 0.09 0.81 0.38 0.42 0.50 0.58 1.88 0.54

Balance Sheet
NOK million
Assets 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
Property, plant and equipment 3,721 3,564 3,341 3,316 3,077 2,977 2,905 3,044 2,945
Right-of-use assets - - - - - - - - 4,184
Intangible assets 6,280 6,525 6,344 6,447 6,343 6,290 6,204 6,349 6,472
Financial assets (non-current) 184 148 124 158 162 153 91 117 196
Lease receivables (non-current) - - - - - - - - 715
IB receivables (non-current) 41 18 18 39 27 31 35 46 47
IB receivables (current) 470 298 279 128 131 103 62 47 144
Trade receivables 2,961 2,968 2,533 2,876 2,819 2,838 3,258 3,236 4,150
Customer contract asset - - - - 2,810 3,146 3,479 3,559 3,931
Accrued revenue and WIP 2,849 2,635 3,015 3,148 - - - - -
Other current assets 1,466 2,076 1,755 1,646 2,271 2,474 1,879 2,094 2,118
Cash and cash equivalents 2,020 1,211 1,449 1,978 2,607 2,440 2,392 2,473 1,872
Total assets 19,992 19,443 18,858 19,736 20,249 20,452 20,305 20,964 26,772
Debt and equity 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
Total equity attributable to the parent 6,546 6,651 6,501 6,981 6,822 6,828 6,849 7,502 7,241
Non-controlling interests 138 110 113 67 25 28 45 106 107
Non IB liabilities (non-current) 870 880 901 877 842 848 859 847 815
Interest bearing debt (non-current) 1,822 1,729 3,230 2,576 2,745 2,703 2,777 1,788 1,764
Lease liabilities (non-current) - - - - - - - - 5,203
Trade payables 902 1,156 1,162 1,865 1,859 2,166 2,105 1,680 2,044
Amounts due to customers for construction work, incl advances 2,160 1,484 777 1,206 - - - - -
Customer contract liability - - - - 700 685 416 709 831
Accrued operating and financial cost 2,254 2,447 2,581 2,237 4,256 4,554 4,632 4,539 4,936
Interest bearing current liabilities 1,677 1,484 544 539 495 118 117 1,125 1,125
Other non IB liabilities (current) 3,623 3,503 3,049 3,390 2,503 2,521 2,506 2,668 2,143
Lease liabilities (current) - - - - - - - - 563
Total liabilities and equity 19,992 19,443 18,858 19,736 20,249 20,452 20,305 20,964 26,772
Net current operating assets, excluding held for sale (974) (454) 15 (844) (1,422) (1,415) (1,024) (753) 248
Net interest-bearing items 968 1,686 2,028 970 475 247 405 347 5,878
Equity 6,684 6,761 6,614 7,047 6,848 6,856 6,893 7,608 7,348
Equity ratio (in %) 33.4 34.8 35.1 35.7 33.8 33.5 33.9 36.3 27.4

Cashflow
NOK million
Cashflow 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
EBITDA continuing operations 355 305 401 458 1,519 425 439 463 483 1,810 634
Change in cashflow from operating activities (257) (762) (615) 702 (932) 107 (121) (506) (370) (890) (937)
Net cashflow from operating activities 98 (457) (214) 1,160 587 533 318 (44) 113 921 (303)
Acquisition of property, plant and equipment (31) (38) (7) (135) (211) (31) (99) (107) (94) (331) (77)
Payments for capitalized development (42) (35) (42) (31) (149) (29) (42) (43) (61) (174) (35)
Acquisition of subsidiaries, net of cash acquired (4) (217) 0 (0) (221) - (0) - - (0) (14)
Change in current interest-bearing receivables - 179 - 85 264 - - 40 21 62 -
Sub-lease income received - - - - - - - - - - 28
Cashflow from other investing activities 0 3 22 (15) 10 85 39 50 (27) 147 (60)
Net cashflow from investing activities (76) (109) (26) (96) (308) 25 (102) (59) (160) (297) (159)
Change in external borrowings (475) (218) 586 (655) (762) 205 (388) 110 (26) (99) (22)
Leases paid - - - - - - - - - - (134)
Paid dividends to majority - (0) 0 0 (0) 0 0 0 0 0 -
Other financing activities (20) (33) 5 (26) (73) 0 1 (1) 0 (0) (0)
Net cashflow from financing activities (494) (251) 591 (680) (835) 205 (387) 108 (26) (99) (156)
Effect of exchange rate changes on cash and cash equivalents 13 8 (113) 146 54 (133) 4 (53) 153 (30) 17
Net increase (decrease) in cash and cash equivalents (459) (809) 238 529 (502) 630 (167) (48) 81 495 (601)
Cash and cash equivalents as at the beginning of the period 2,480 2,020 1,211 1,449 2,480 1,978 2,607 2,440 2,392 1,978 2,473
Cash and cash equivalents as at the end of the period 2,020 1,211 1,449 1,978 1,978 2,607 2,440 2,392 2,473 2,473 1,872

Split Per Segment
NOK million
Revenue 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 4,066 4,232 4,184 5,179 17,660 4,239 4,862 5,211 5,608 19,920 5,952
Services 1,068 1,156 1,165 1,170 4,560 1,159 1,337 1,277 1,324 5,096 1,299
Other 41 43 75 105 264 89 58 72 78 298 42
Eliminations (2) (5) (6) (11) (24) (3) (3) (19) (56) (82) (37)
Revenue 5,173 5,425 5,419 6,444 22,461 5,483 6,254 6,541 6,954 25,232 7,256
EBITDA 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 269 213 320 415 1,217 312 325 372 346 1,354 477
Services 152 144 157 151 605 135 172 183 188 678 186
Other (66) (52) (76) (109) (303) (22) (58) (92) (50) (222) (30)
EBITDA 355 305 401 458 1,519 425 439 463 483 1,810 634
EBITDA margin 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 6.6% 5.0% 7.6% 8.0% 6.9% 7.3% 6.7% 7.1% 6.2% 6.8% 8.0%
Services 14.2% 12.5% 13.5% 12.9% 13.3% 11.7% 12.9% 14.3% 14.2% 13.3% 14.3%
EBITDA margin 6.9% 5.6% 7.4% 7.1% 6.8% 7.8% 7.0% 7.1% 7.0% 7.2% 8.7%
EBIT 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 129 79 197 203 608 173 201 254 214 843 280
Services 113 99 119 98 429 94 131 141 145 511 120
Other (92) (79) (99) (196) (466) (41) (78) (114) (72) (305) (75)
EBIT 150 99 217 105 571 226 254 282 287 1,049 325
EBIT margin 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 3.2% 1.9% 4.7% 3.9% 3.4% 4.1% 4.1% 4.9% 3.8% 4.2% 4.7%
Services 10.6% 8.5% 10.2% 8.4% 9.4% 8.1% 9.8% 11.1% 11.0% 10.0% 9.2%
EBIT margin 2.9% 1.8% 4.0% 1.6% 2.5% 4.1% 4.1% 4.3% 4.1% 4.2% 4.5%

Split Per Segment
NOK million
NCOA 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
Projects (810) (239) 151 (712) (1,350) (1,540) (1,067) (1,141) (262)
Services 640 603 595 511 550 646 633 693 908
Other (803) (818) (731) (643) (622) (521) (591) (306) (398)
NCOA (974) (454) 15 (844) (1,422) (1,415) (1,024) (753) 248
Order intake 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 4,096 2,582 1,830 9,669 18,177 6,460 4,959 3,806 4,417 19,642 3,482
Services 494 373 668 3,581 5,116 2,205 691 2,102 759 5,756 1,975
Other 10 67 67 238 381 20 34 77 92 223 70
Eliminations (8) 1 (9) (105) (121) (46) (11) (127) (16) (200) (3)
Order intake 4,591 3,022 2,556 13,383 23,553 8,639 5,673 5,857 5,252 25,421 5,523
Order backlog 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
Projects 22,599 23,371 20,684 24,807 27,102 27,286 25,716 25,014 22,547
Services 8,146 7,328 6,569 9,743 10,483 9,802 10,507 10,294 10,917
Other (31) (7) (14) 135 108 41 50 (0) (6)
Eliminations (4) 4 (0) (103) (140) (148) (192) (159) (126)
Order backlog 30,709 30,695 27,239 34,581 37,553 36,981 36,081 35,148 33,332

Split Per Segment – Excluding special items
NOK million
EBITDA (excl. special items) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 269 295 323 405 1,292 322 328 373 348 1,371 478
Services 152 147 157 151 607 135 173 190 194 692 187
Other (59) (42) (59) (74) (234) (74) (60) (70) (46) (251) (29)
EBITDA (excl. special items) 363 400 421 482 1,665 384 441 492 495 1,812 636
EBITDA margin (excl. special items) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 6.6% 7.0% 7.7% 7.8% 7.3% 7.6% 6.7% 7.2% 6.2% 6.9% 8.0%
Services 14.2% 12.7% 13.5% 12.9% 13.3% 11.7% 13.0% 14.9% 14.6% 13.6% 14.4%
EBITDA margin (excl. special items) 7.0% 7.4% 7.8% 7.5% 7.4% 7.1% 7.1% 7.5% 7.1% 7.2% 8.8%
EBIT (excl. special items) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 129 161 207 276 773 199 203 255 217 874 281
Services 113 101 119 98 432 93 132 148 154 528 120
Other (85) (64) (83) (97) (329) (94) (79) (90) (66) (329) (72)
EBIT (excl. special items) 157 199 243 277 876 199 256 313 305 1,074 329
EBIT margin (excl. special items) 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Projects 3.2% 3.8% 4.9% 5.3% 4.4% 4.7% 4.2% 4.9% 3.9% 4.4% 4.7%
Services 10.6% 8.8% 10.2% 8.4% 9.5% 8.0% 9.9% 11.6% 11.6% 10.4% 9.3%
EBIT margin (excl. special items) 3.0% 3.7% 4.5% 4.3% 3.9% 3.7% 4.1% 4.8% 4.4% 4.3% 4.5%

Projects | Subsea and Field Design
NOK million
Revenue 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Subsea 2,182 1,883 1,801 2,471 8,336 1,956 2,084 2,079 2,042 8,162 2,439
Field Design 1,887 2,353 2,386 2,776 9,402 2,284 2,810 3,170 3,551 11,814 3,512
Eliminations/other (3) (4) (4) (67) (78) (1) (32) (38) 15 (57) 1
Revenues 4,066 4,232 4,184 5,179 17,660 4,239 4,862 5,211 5,608 19,920 5,952
Order intake 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019
Subsea 692 929 494 5,661 7,776 2,986 1,123 1,074 2,866 8,049 1,418
Field Design 3,408 1,654 1,335 4,001 10,398 3,487 3,867 2,715 1,566 11,635 2,064
Eliminations/other (4) (2) 1 8 3 (13) (31) 17 (15) (42) -
Order intake 4,096 2,582 1,830 9,669 18,177 6,460 4,959 3,806 4,417 19,642 3,482
Order backlog 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019
Subsea 8,814 7,727 6,200 9,532 10,615 9,746 8,621 9,837 8,784
Field Design 13,758 15,642 14,476 15,249 16,470 17,521 17,043 15,161 13,721
Eliminations/other 27 3 7 26 17 19 52 16 42
Order backlog 22,599 23,371 20,684 24,807 27,102 27,286 25,716 25,014 22,547

Risk Factors
Investing in bonds involves inherent risks Market Risk
■ Prospective investors should consider, among other things, the risk factors set ■ Compared to recent years, the market situation and current outlook for the oil-
out and referenced in this risk factors section before making an investment services industry is improving. Nevertheless, significant challenges remain.
decision with respect to the bonds. An investment in bonds is suitable only for Some of the principal factors that contribute to market risk are outlined below:
investors who understand the risk factors associated with this type of investment ■ Local content requirements, legislative restrictions and/or prohibitions on oil
and who can afford a loss of all or part of the investment. If any of the risks and gas activities in countries of existing or planned operations.
described or referenced below materialise, individually or together with other
circumstances, the business, financial position and operating results of Aker ■ Liabilities under environmental laws or regulations.
Solutions could be materially and adversely affected. ■ Uncertainty regarding future contract awards and their impact on future
■ Aker Solutions’ global footprint, operations and exposure to energy markets earnings and profitability.
provide both opportunities and risks that may affect the company’s operations, ■ Changes in global demand, energy prices and environmental requirements
performance, finances, reputation and share price. impact upon oil company activities and the overall development of the
■ Overall company performance is affected by both external and internal factors. market.
External factors include issues such as fluctuations in energy prices, customer
■ These factors will influence Aker Solutions’ exploration, development, production,
behaviour and market developments, while internal factors may encompass
investment, modification and maintenance activity.
matters such as project execution and service delivery. The inherent complexity
of Aker Solutions internal operations and the costs across a broad-based value ■ Developments within the market may lead to capacity adjustments and changes
chain also impact upon results. Principal cost drivers include the cost of in the valuation of company assets and liabilities. The main uncertainties include
suppliers’ direct and indirect material, sub-contractor costs and the company’s delivering on the company’s international growth ambitions, entry and
own man-hours, and fluctuations in oil and gas prices. establishment in new growth markets, and delivering a competitive cost base.
Aker Solutions is committed to an active policy of risk management and may take
■ Through its business, Aker Solutions is exposed to legal, regulatory and political
mitigating actions to increase flexibility in its operations, for instance by seeking
risks, such as tax changes, decisions on environmental regulation, and
to drive down costs, build a sustainable global workforce and enhance
international sanctions that impact supply and demand, as well as risks
standardization and simplification. The company aims to be agile in its approach
associated with unethical and criminal behaviour. The company is also exposed
to the market, effectively adapting to industry demand and fluctuations to deliver
to financial market risks, including changes in currency rates, interest rates, credit
optimal value and rewards across the value chain. A focus on continuous
and counterparty risks, as well as risks associated with access to and terms of
improvement in productivity and sustainability is central to these efforts.
financing.

Risk Factors (cont.)
Operational risk
■ Aker Solutions utilizes both reimbursable and fixed-price contracts. Contracts
that include fixed prices for all or parts of the deliverables are subject to the risk
of potential cost overruns. Aker Solutions is involved in projects that are both
demanding and complex in nature, with significant design and engineering
requirements, as well as extensive procurement and manufacturing of
equipment, sourcing supplies and construction management. In certain situations
the projects may also require the development of innovative new technology and
solutions. These can impact upon the company’s ability to deliver on time and in
accordance with a contract, potentially harming Aker Solutions’ reputation,
performance and finances. Factors that may have an adverse material effect on
the business, results of operations and finances of Aker Solutions include, but
are not limited to:
■ The loss of business from a significant customer, the failure to deliver a
significant project as agreed, or alterations to the order backlog
■ Aker Solutions’ ability to compete effectively and maintain market positions
and sales volumes
■ The company’s capability to successfully commercialize new technology
■ Partnerships, joint ventures and other types of cooperation that expose the
company to risks and uncertainties outside its control
■ Non-delivery and/or disputes with a key sub-supplier
■ Significant delays or quality issues impacting upon project delivery or
performance
■ Cybercrime leading to system downtime or significant loss of intellectual
property

Financial risk ■ Interest rate risk: The company’s interest exposure mainly arises from
external funding in bank and debt capital markets. Currently all external debt
■ The objective of financial risk management is to manage exposure from financial
in Aker Solutions is at floating interest rates. The company’s risk
risks to increase predictability of earnings and minimize potential adverse effects
management strategy is that 30-50% of the interest exposure shall be fixed
on financial performance.
interest rate for the duration of the debt. The company uses interest rate
■ Financial risk management and exposures are described in detail in the annual swaps to achieve the desired fixed / floating ratio of the external debt. As the
report for 2018. The main financial risks are: group has no significant interest-bearing operating assets, operating income
and operating cashflow are substantially independent of changes in market
■ Currency risk: Aker Solutions has international operations and is exposed interest rates.
to currency risk on commercial transactions, assets and liabilities when
payments and revenues are denominated in a currency other than the ■ Credit risk: The credit risk related to customers’ ability to pay is assessed in
functional currency of the respective entity. The currency risks in all major the bid phase and during execution of a project. The majority of the
contracts are hedged with external banks in the foreign exchange market. customers are highly rated oil companies where the credit risk is considered
More than 80 percent of the hedging volume either qualifies for hedge to be limited. Risk related to lower rated companies is monitored closely.
accounting or is presented separately as hedges of embedded derivatives.
Some jurisdictions may have currency restrictions and / or restrictions on ■ Price risk: Aker Solutions is exposed to fluctuations in market prices which
repatriation of funds, in which case the company takes mitigating actions to are mitigated in the bid process by locking in committed prices with vendors
minimize the currency exposure. These actions include non-deliverable or through escalation clauses with customers.
forwards, multilateral or bilateral agreements with banks, customers and
vendors regarding conversion of currencies, and timing of invoicing and
■ Aker Solutions has company-wide policies, procedures and tools that identify,
payments.
evaluate and respond to risks actively and systematically. The assessment,
definition, follow-up and implementation of adequate mitigating actions towards
■ Liquidity risk: The corporate treasury department ensures financial
the main risk factors are all integral parts of the overall governance of the
flexibility by ensuring sufficient liquidity reserves and available committed
company. Aker Solutions applies a combination of risk management practices in
credit lines. The company monitors rolling 12 weeks and 12 months cash
order to effectively manage the risk to the company such as: internal controls,
forecasts of the company’s future liquidity reserve, based on committed and
scenario planning, sensitivity analysis and audit management.
expected cashflow in all business entities.

Ethical and Political Risks Risk Mitigation
■ Aker Solutions could potentially become involved in unethical behavior, either ■ Aker Solutions has company-wide policies, procedures and tools that identify,
directly or through third parties or partners. The company has operations in evaluate and respond to risks actively and systematically. The assessment,
countries associated with high political, reputational and corruption risks. Key definition, follow-up and implementation of adequate mitigating actions towards
tools to reduce these risks are the company’s code of conduct and anti-corruption the main risk factors are all integral parts of the overall governance of the
compliance program, which are implemented at all locations globally. Risks are company. Aker Solutions applies a combination of risk management practices in
also managed through country analyses, mandatory awareness training, order to effectively manage the risk to the company such as: internal controls,
compliance reviews and integrity due diligence. Aker Solutions’ anti-corruption scenario planning, sensitivity analysis and audit management.
program is subject to quarterly reporting to the Audit Committee.
Other risks
■ Aker Solutions has zero tolerance for corruption and works vigilantly to prevent
such behavior. The company has control systems in place throughout the ■ The risk factors set out above are non-exhaustive and Aker Solutions is subject
organization that are designed to identify and limit the effects of violations of the to a number other risks of both a general and company specific nature.
code of conduct. While the breaches were limited in scope, the company took
swift action to address them. In general, employees face consequences spanning ■ The annual report of Aker Solutions for 2018 provides more information on risks
from a warning to dismissal for violating the code of conduct. and uncertainties. The annual report is available on www.akersolutions.com.
Reference is also made to the risk factors set out in the prospectus (comprising
■ Given its size and presence in different parts of the world, Aker Solutions the registration document and the securities note) issued in connection with the
experiences from time to time being investigated by various types of local 2018 bond issue, as such risk factors continue to be relevant for Aker Solutions.
authorities. At present Aker Solutions is aware of a few open matters, however The prospectus is available on www.oslobors.no (Ticker: AKSO03).
none of them are deemed material.

Copyright and Disclaimer
Copyright
Copyright of all published material including photographs, drawings and images in this document remains vested in Aker Solutions and third
party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any
manner without express prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or
removed from any reproduction.
Disclaimer
This Presentation 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 Presentation 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 Solutions ASA and
Aker Solutions 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 Solutions’ 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 Presentation. Although Aker Solutions ASA believes that its expectations and the Presentation 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 Presentation. Aker Solutions ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or
completeness of the Presentation, and neither Aker Solutions ASA nor any of its directors, officers or employees will have any liability to you
or any other persons resulting from your use.
Aker Solutions consists of many legally independent entities, constituting their own separate identities. Aker Solutions is used as the common
brand or trade mark for most of these entities. In this presentation we may sometimes use “Aker Solutions”, “we” or “us” when we refer to Aker
Solutions companies in general or where no useful purpose is served by identifying any particular Aker Solutions company.


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© 2019 Aker Solutions

Strategy & Market Outlook

Financials & Recent Developments

© 2019 Aker Solutions May 16, 2019 Slide 2

© 2019 Aker Solutions

Fixed and Floating Production Systems

Engineering, Procurement and Management Assistance

Subsea Production Systems

Subsea Pumps, Compression and Processing

We deliver integrated solutions

Maintenance, Modifications and Operations

Carbon Capture and Storage

© 2019 Aker Solutions

Sale of MLS* to Cargotec

2002 2010 2011 2013 2014 2016 Future

Demerger of Aker Solutions

© 2019 Aker Solutions May 16, 2019 Slide 5

United States Italy Cyprus

Republic of Congo Malaysia

15,000+ 20+ 50+

© 2019 Aker Solutions May 16, 2019 Slide 6

Collaboration Across the Value Chain

© 2019 Aker Solutions May 16, 2019 Slide 7

Early engagement in study and FRONT END

© 2019 Aker Solutions May 16, 2019 Slide 8

Early involvement is a key

© 2019 Aker Solutions May 16, 2019 Slide 9

Reduce Time Improve Enhance Improve Improve

© 2019 Aker Solutions

Carbon Capture Utilization and Storage (CCUS)

© 2019 Aker Solutions May 16, 2019 Slide 12

© 2019 Aker Solutions May 16, 2019 Slide 13

© 2019 Aker Solutions May 16, 2019 Slide 14

▪ Master Contract with FEED as first call-off

© 2019 Aker Solutions

Customer Greenfield Brownfield Subsea Lifecycle

Early Client Engagement Project Execution Life-of-Field Services

© 2019 Aker Solutions May 16, 2019 Slide 16

© 2019 Aker Solutions May 16, 2019 Slide 17

© 2019 Aker Solutions May 16, 2019 Slide 18

© 2019 Aker Solutions May 16, 2019 Slide 19

© 2019 Aker Solutions

Emergence of New Business Models Efficient Operations

Role of Gas Focus on Renewables

© 2019 Aker Solutions May 16, 2019 Slide 21

© 2019 Aker Solutions May 16, 2019 Slide 22

■ Tendering for NOK 55 billion – good balance of

(Source: Goldman Sachs equity research March 25, 2019)

© 2019 Aker Solutions May 16, 2019 Slide 23

© 2019 Aker Solutions

Winning new orders through differentiation Improving outlook

© 2019 Aker Solutions May 16, 2019 Slide 25

Revenue EBITDA Order Intake Order Backlog NIBD/EBITDA Equity Ratio

25.2 1.8 25.4 35.1 0.2x 36%

30 2.5 40 40 2.0x 40%

© 2019 Aker Solutions May 16, 2019 Slide 26

Target of 30 percent by Minimum 20 percent