Investor Presentation - Aker ASA Proud ownership
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Proud ownership Aker ASA Investor Presentation May 2018
Aker ASA – an industrial investment company
Long history of value creation: Founded in 1841, Aker ASA is an industrial
investment company that creates shareholder value through active ownership. Sector view & expertise
Aker is owned 68% by TRG, a company controlled by Chairman Kjell Inge
Røkke
Maritime assets Seafood & Marine Real estate &
E&P Oil services
& leasing Biotech finance
Attractive portfolio: Net Asset Value of NOK 55.0 billion1) with portfolio
companies positioned for growth and increasing upstream cash generation
Creating value for shareholders: Delivered 29% annual total return to
shareholders since 2004; policy to pay 2-4% of Net Asset Value in dividends to
shareholders, 12% investment return target per annum over the cycle
Value creation plan
Active approach: Through participation on the board of directors, Aker drives
operational and strategic improvement, assists in financing structures and
assesses and evaluates M&A and restructuring cases
Deep industry perspective: Concentrated on industries where we have in- Active ownership
depth knowledge and can add substantial value
Financial strength and flexibility: Strong balance sheet with ample Capital
Strategic Restructuring Org. & human Operational
structures &
investment capacity, conservative leverage and growing upstream cash flow direction and M&A
financing
capital improvement
1) Based on closing prices of Aker’s listed holdings as per 11 May 2018, remaining assets and liabilities at reported book values per 31.03.18. NAV adjusted for NOK 1.3bn dividend paid in early May, but excluding other cash movements in the
second quarter. AMSC TRS not adjusted
May 2018 AKER ASA | Investor Presentation 2
Aker’s portfolio currently weighted towards oil and gas
1)
Portfolio composition Gross asset value distribution
Values per 11.05.2018 and Q1 2018, Aker % ownership Per 1Q 2018
Industrial Holdings Financial Investments Other 2% Real estate investments 1%
Cash and liquid
fund investments 6%
E&P 40.0% Cash Seafood & Marine
Biotech 6% E&P 59%
Oil
34.8%
Services Liquid fund investments
Oil 36.7%
Services
Listed financial investments Maritime
Oil
Services
28.7% assets 13% NOK
Maritime
61.7%
Real estate 52.2bn
assets
Oil
Marine Other financial investments services 13%
100.0%
Biotech
NOK 58.9bn NOK 5.9bn
(Q1: NOK 44.9bn) (Q1: NOK 7.3bn)
1) Based on closing prices of Aker’s listed holdings as per 11 May 2018, remaining assets and liabilities at reported book values per 31.03.18. Cash adjusted for NOK 1.3bn dividend paid in early May, but excluding other cash movements in the
second quarter. AMSC TRS not adjusted
May 2018 AKER ASA | Investor Presentation 3
A growing and evolving portfolio of high quality companies
1%
2%
3% 3% 6% E&P
6% Oil services
7% 8% 23%
14%
Maritime assets
13%
Seafood & Marine Biotech
13%
Cash and liquid fund inv.
NOK 8% NOK NOK 59%
10% Other
22.9bn 26.8bn 52.2bn
52% Real estate investments
10% 10%
13%
39%
2009 2012 Q1 2018
Main contributors to gross asset value: Main contributors to gross asset value: Main contributors to gross asset value:
Cash Cash
May 2018 AKER ASA | Investor Presentation 4
Steady development towards a more transparent and liquid portfolio
Gross asset value composition
NOK billion and percentage distribution
Listed assets Cash and liquid fund investments Unlisted assets
20.7 22.9 21.4 22.7 26.8 29.8 24.9 27.9 43.1 50.4 52.2
8% 9% 9%
20% 19% 18% 20% 3%
23% 11% 6%
43%
11% 13% 7%
56% 14%
58%
20%
15%
88% 85%
81%
13% 73%
66% 70% 69%
24% 57%
42%
31%
18%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018
May 2018 AKER ASA | Investor Presentation 5
Upstream cash flow growing, enabling Aker to pay attractive dividends to
shareholders
Upstream dividends Dividends to Aker shareholders
NOK billion NOK per share (left axis) and % yield (right axis)
Havfisk 20 8,0 %
7,1 % 7,1 %
18
7,0 %
Kvaerner
16 5,7 % 6,1 % 6,1 %
1.6 5,9 %
6,0 %
1.4 Aker 14
1.4 Solutions/Akastor 5,0 %
4,5 % 5,0 %
12
Aker BioMarine
1.0 10 4,0 %
0.9 18
Financial
8 16
Investments 5 3,0 %
13
Aker BP 6 12
0.5 11
10 10 2,0 %
4
0.2 Ocean Yield 5 1,0 %
2
Received Q1
0 0,0 %
2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018
3.9 4.1 3.7 3.9 4.1 3.6 3.5 3.2 % of NAV1)
1) As per end of preceding year Direct dividend yield1) Optional scrip dividend Cash dividend
May 2018 AKER ASA | Investor Presentation 6
Aker has delivered 29% annual return to shareholders since 2004
Aker NAV development 1)
Annual return, including dividends
NOK per share, since re-listing Sep 2004 Average since Aker’s re-listing Sep 2004 to 2018 YTD
NAV per share
Accumulated dividends per share
9.3x
912 29%
171
741 11%
5%
98
Sep-04 11.05.2018 Aker OSEBX Brent
1) Based on closing prices of Aker’s listed holdings as per 11 May 2018, remaining assets and liabilities at reported book values per 31.03.18. NAV adjusted for NOK 1.3bn dividend paid in early May, but excluding other cash movements in the
second quarter. AMSC TRS not adjusted. Accumulated dividends including dividend paid in May 2018
May 2018 AKER ASA | Investor Presentation 7
Actively managing portfolio holdings to create value, and using M&A as a strategic
tool to create value for portfolio companies
AKER ASA 2016 2017 2018
Divestment Divestment Acquisition
Investment Acquisition Acquisition Acquisition Aker Energy
of real Investment of Havfisk of shares in
in Solstad of shares in of shares in of shares in to acquire
estate in Cxense and Norway Farstad
Offshore Aker BP Cognite Aker BP Hess Ghana
property Seafoods Shipping
Portfolio companies 2016 2017 2018
Merger Acquisition Acquisitions Investment
Acquisition of Merger
Acquisition Acquisition of between of two Sale of of four in perpetual
6 container Divestment between Acquisition Acquisition
of Centrica BP Divestment of Acquisition of Deep Sea PSVs and KOP Acquisition VLCCs and preferred
vessels and 2 of Fjords Frontica of of Hess
Norway Norwegian Frontica IT 70% of C.S.E Supply, four Surface of Neptune seven dry equity in
chemical Processing Advantage Reinertsen Norway
licenses subsidiary Farstad and Suezmax Products bulk Odfjell
tankers and NES
Solstad tankers vessels Drilling Ltd.
May 2018 AKER ASA | Investor Presentation 8
Case study: Turning Aker BP into one of Europe’s largest independent E&P
companies
Step-change transactions Capital invested by Aker (2006-)
NOK
8.7bn
1)
Merger between Aker Acquisition of Acquisition of BP’s Acquisition of Hess’ Nominal value created to Aker (2006-)
Exploration and Det norske Marathon Oil Norway Norwegian assets Norwegian assets
(2009) (2014) (2016) (2017)
+NOK
Bolt-on acquisitions 35.3bn
Acquisition of Svenska
Petroleum’s Norwegian Acquisition of Premier Oil’s Acquisition of Centrica’s 1)
Norwegian subsidiary Norwegian licenses
Equity return for Aker (2006-)
subsidiary
+33%
Acquisition of eight licenses Acquisition of Noreco’s p.a.
from Tullow Norway Norwegian portfolio
1) Based on Aker BP’s closing price as per 11 May 2018, dividends included
May 2018 AKER ASA | Investor Presentation 9
Case study: Establishing Ocean Yield as a leading maritime leasing company with
a strong backlog and growing upstream cash flow
1) 2)
EBITDA backlog Market value Dividend growth Value to Aker at IPO (2013)
+2.5 +7.5 +59% NOK
2.7bn
3.5 BUSD 11.1 BNOK USD 0.76
3)
Nominal value created to Aker (2013-)
USD 0.48
+NOK
6.5bn
3.6 BNOK 3)
1.0 BUSD Equity return for Aker (2013-)
+35%
p.a.
2012 Current IPO Current IPO Current
1) Based on Ocean Yield’s closing price as per 11 May 2018. Including two equity private placements totaling NOK 1.6 billion; 2) Annualized dividend per share at time of IPO in Q3 2013 compared to the annualized dividend declared in Q1 2018;
3) Based on Ocean Yield’s closing price as per 11 May 2018, dividends included
May 2018 AKER ASA | Investor Presentation 10A conservative debt strategy ensures balance sheet flexibility and continued
access to capital
Aker’s credit framework Debt strategy
Financial guidelines
PERFORMANCE Financial metrics at investment grade level
PERFORMANCE
Grow upstream cash flow
Net LTV within investment grade
to maintain flexibility and
sustainable dividend Balancing cash inflow and cash outflow at Aker ASA and holding companies
Solid liquidity reserves to cover debt
Parameters may fluctuate over time, but remain long term targets over
LIQUIDITY SOLIDITY business cycles
PERFORMANCE
Manage periods where PERFORMANCE
Low gearing at Aker ASA
external financing is not to withstand adverse
available or too expensive value changes in portfolio General guidelines
Long-term funding profile
Financial flexibility to optimize timing of refinancing activities
CAPACITY
Open dialogue with bond and bank market
PERFORMANCE
Ability to pursue
attractive investments Subsidiaries financed independently
swiftly
May 2018 AKER ASA | Investor Presentation 11Solid financial position with low gearing level and financial flexibility
3) 4)
Net LTV Cash in- and outflow Liquidity reserves and debt coverage
Aker ASA,1) per cent Aker ASA,1) ratio NOK billion
35% 1,6 12 Bond debt Bank debt
LTV 25-35%
~BBB rating
30% 1,4
10
Targeted range
1,2 1.2x
25%
LTV 15-25% 8
~A rating 1,0
20% 0.9x 0.9x
0,8 6
15% 0.7x
LTV 10-15% 0,6
~AA rating 4
10% Liquidity reserves after NOK
0,4 1.3bn dividend paid in May
2)
LTVStrong balance sheet with significant investment capacity
1)
Net Asset Value Investment capacity
NOK billion, per 11.05.2018 NOK billion, per 31.03.18
64.8
Industrial Holdings
Other Financial Investments
Cash and liquid fund investments
Increased gearing
Increased dividends
6.0
Divestments
55.0bn
85%
91% 58.9
1.3
2.3
2.9
9.8
7% 4.4
1.6
Gross asset value Liabilities Cash (incl. Undrawn Dividend Additional
liquid fund inv.) credit facilities (May’18) potential sources
Net asset value of NOK 55.0bn and Strong investment capacity with
a solid financial position NOK 3.8bn in available liquidity after dividend paid
1) Based on closing prices of Aker’s listed holdings as per 11 May 2018, remaining assets and liabilities at reported book values per 31.03.18. Cash adjusted for NOK 1.3bn dividend paid in early May, but excluding other cash movements in the
second quarter. AMSC TRS not adjusted
May 2018 AKER ASA | Investor Presentation 13Conclusion
1 A growing, transparent portfolio of high quality companies
Active ownership of portfolio companies and a focused
2 approach leads to value creation
Strong and growing upstream cash flow support
3 predictable and sustainable dividend policy
Conservative debt strategy with low gearing and financial
4 flexibility Creating value through a
strategic approach to
portfolio investing.
5 Strong balance sheet with significant investment capacity
May 2018 AKER ASA | Investor Presentation 14APPENDIX May 2018 AKER ASA | Investor Presentation 15
Industrial Holdings
Aker BP
Exploration & Production company on the Norwegian continental shelf
% of gross asset value
(1Q 2018)
Investment value of NOK 30.6 billion
59%
Aker’s investment
NOK million
Aker’s ownership agenda Value as per 31.12.17 29 083
Value change in 1Q 1 838
Growth; organic (greenfield projects, IOR and
Received dividends (354)
exploration) and through M&A
Value as per 31.03.18 30 567
Dividend growth
Key figures
Operational excellence and efficiency improvements USD million
1Q 17 1Q 18
through new business models and technologies,
including digitalisation Revenues 646 890
EBITDAX 517 712
May 2018 AKER ASA | Investor Presentation 16Industrial Holdings
Aker Solutions
Global oil services company providing services, technologies, and product
solutions within subsea and field design
% of gross asset value
(1Q 2018)
Investment value of NOK 3.9 billion
8%
Aker’s investment
NOK million
Aker’s ownership agenda Value as per 31.12.17 4 368
Increase competitiveness, reach cost-efficiency target Value change in 1Q (448)
of 50 per cent by 2021 Value as per 31.03.18 3 920
Win new contracts Key figures
Partnerships, alliances and M&A NOK million
1Q 17 1Q 18
Revenues 5 173 5 483
EBITDA 355 425
Backlog 30 709 37 553
May 2018 AKER ASA | Investor Presentation 17Industrial Holdings
Akastor
Oilfield services investment company with a flexible mandate for long-
term value creation
% of gross asset value
(1Q 2018)
Investment value of NOK 1.5 billion
3%
Aker’s investment
NOK million
Aker’s ownership agenda Value as per 31.12.17 1 649
Operational excellence, cost reductions Value change in 1Q (117)
Value as per 31.03.18 1 533
Win new contracts
Key figures
Transactions
NOK million
1Q 17 1Q 18
Revenues 943 1 135
EBITDA 53 140
Backlog 7 295 6 462
May 2018 AKER ASA | Investor Presentation 18Industrial Holdings
Kvaerner
Oil and gas-related EPC company
% of gross asset value
(1Q 2018)
Investment value of NOK 1.0 billion
2%
Aker’s investment
NOK million
Aker’s ownership agenda Value as per 31.12.17 1 220
Enhance competitiveness through operational Value change in 1Q (219)
excellence and cost reductions Value as per 31.03.18 1 001
Win new contracts Key figures
Maintain strong balance sheet NOK million
1Q 17 1Q 18
Revenues 1 554 1 913
EBITDA 108 193
Backlog 10 841 11 118
May 2018 AKER ASA | Investor Presentation 19Industrial Holdings
Ocean Yield
A maritime assets company with focus on long-term contracts
% of gross asset value
(1Q 2018)
Investment value of NOK 6.5 billion
12%
Aker’s investment
NOK million
Aker’s ownership agenda Value as per 31.12.17 6 828
Growth by new investments and M&A Value change in 1Q (196)
Received dividends (148)
Further diversify portfolio, both counterparty and segment-
Value as per 31.03.18 6 484
wise
Key figures
Optimise capital structure and reduce cost of capital USD million
1Q 17 1Q 18
Revenues 79 89
Manage and mitigate counterparty risk
EBITDA 71 78
EBITDA backlog 2 800 3 500
May 2018 AKER ASA | Investor Presentation 20Industrial Holdings
Aker BioMarine
Integrated biotech company – specialised in krill harvesting and processing
% of gross asset value
(1Q 2018)
Investment value of NOK 1.4 billion
3%
Aker’s investment
NOK million
Aker’s ownership agenda Value as per 31.12.17 (book value) 1 411
Operational excellence and improve profitability Value change in 1Q -
Value as per 31.03.18 (book value) 1 411
Increase sales by entering new products, channels
and geographies
Key figures
Extract synergies from recent transactions
USD million
1Q 17 1Q 18
New vessel and other investments to fast-track growth Revenues 28 35
EBITDA 3 3
May 2018 AKER ASA | Investor Presentation 21Aker ASA
Aker Energy and Cognite remain core to Aker’s value agenda
Key developments
▪ Agreement to acquire Hess Ghana from Hess Corporation for USD 100 million, of which USD 75 million
million payable
payable on approval
on approval
of PDOof PDO
▪ Jan Arve Haugan appointed CEO, management in place
E&P company in Ghana
▪ Board recruited and governance model established
(50% owned by Aker) ▪ Organization
Aker Energy team
scaled
scaled
to ~80toskilled
~80 FTEs
employees
▪ Ongoing work to prepare for submission of PDO in H2, and verify resource base through drilling program
Key developments
▪ Signed Aker Solutions as customer in the first quarter
▪ Further progress made with Aker BP as core customer in effort to digitalize company
▪ In process of expanding portfolio of external clients
Digitalization company ▪ Recruiting new talents, organization now ~75 employees
(68% owned by Aker)
May 2018 AKER ASA | Investor Presentation 22Aker ASA and holding companies
Interest-bearing items as of 31.03.2018
Loan amount Outstanding 1)
Interest-bearing debt Maturity NOK million
(MNOK) (MNOK)
Bond AKER 11 1 300 1 206 2018 5 000
Bond AKER 12 2)
1 407 1 407 2019 4 500
Bond AKER 13 1 000 1 000 2020 4 000 Bank loans
Bond AKER 10 700 700 2020 3 500
Bond AKER 09 1 000 1 000 2022 3 000 Bonds
Bond AKER 14 (to refinance AKER11) 1 500 1 500 2023 2 500
Bank RCF 4) 1 500 0 2021-23 2 000 AKER 10
6)
Capitalised loan fees etc. (26) (26) 1 500
Total Aker ASA 8 381 6 787
AKER 10
1 000
Aker Capital bank loan 1 3) 2 722 1 944 2020-22 500 AKER 11 AKER
AKER11
12 AKER
AKER1213 AKER 13 AKER 09 AKER
AKER0914
5) 778 778 2018-20
Aker Capital bank loan 2 0
Capitalised loan fees etc. 6) (10) (10) 2018 2019 2020 2021 2022 2023
Total Aker ASA and holding companies 11 871 9 500
Loan guarantees 4Q 2017 1Q 2018
Aker BioMarine 305 305 Average debt maturity is 2.6 years
Other (external) 49 44
Total 354 349 Status at
Financial Covenants Limit
31.03.2018
For further details and financial reports, see www.akerasa.com/investor
i Total Debt/Equity - Aker ASA (parent only) < 80% 38%
1) Loan amount drawn, less own bonds
2) MSEK 1 500 issue
3) MUSD 350 term loan (maturity in 2020 with two one-year uncommitted extension options), redrawable up to the original ii Group Loans to NAV < 50% 3.2%
amount or Group Loans
4) Revolving credit facility (RCF) of MNOK 1 500 (maturity in 2021 with a two times one-year uncommitted extension option) < NOK 10 bn NOK 1.4 bn
5) MUSD 100 3 years Master Term Loan Agreement (SMTLA) with up to twelve months rolling tranches
6) Capitalised loan fees and internal items
May 2018 AKER ASA | Investor Presentation 23Investor Relations Per Kristian Reppe Investment Manager & Head of Investor Relations +47 24 13 00 67 per.reppe@akerasa.com https://eng.akerasa.com/Investor May 2018 AKER ASA | Investor Presentation 24
Proud ownership
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. May 2018 AKER ASA | Investor Presentation 26
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