Aker Seafoods separate presentation Yngve Myhre, CEO and Bent Skisaker, CFO

Transcription

1 4nd quarter 2005 Status and outlook Oslo, 16 February 2006 Agenda Aker Group update Leif-Arne Langøy, President & CEO 4Q05 financials Bengt A Rem, Exec Vice President & CFO The road ahead Leif-Arne Langøy, President & CEO Q&A Aker Seafoods separate presentation Yngve Myhre, CEO and Bent Skisaker, CFO Aker American Shipping separate Q&A session Dave Meehan, CEO and Jan-Ivar Nielsen, CFO The accounts in this presentation have been prepared in accordance with the International Financial Reporting Standard (IFRS). Historical numbers have been recalculated according to the same principles. 4Q05 Status and outlook 2 1

2 Aker Group Current structure Aker ownership 50.01% 55.6% 66.7% Aker ASA (parent) and holding companies % 30.8% Key financials Year Year (in NOK million) Revenues EBITDA Order intake Order backlog % 100% 100% Illustration Aker Kværner Mcap: 27.9 bn Aker Yards 7.3 billion Aker Seafoods 1.9 billion Aker Am Shipping 3.2 billion Aker Aker Drilling Capital 3.7 billion Aker Material Handling Aker Capital 1 Includes wholly owned service and holding companies that carry only investments, cash and debt in their balance sheet. The combined Aker ASA and holding companies balance sheet (slide 23) shows net debt relating to the holding companies investments above, except Aker Capital which is included in the parent company structure Market cap are for 100 % as traded on 10 February Listed 4Q05 Status and outlook 3 Group highlights 2005: A good year Strong organic growth Revenues up 21 % to NOK 62.4 billion EBITDA up 49 % to NOK 3.3 billion Order backlog up 65 % to NOK 98.4 billion Shareholder value developed Operational improvements, EBITDA margin from 4.3 % to 5.3 % New businesses created (AKS, AKD, AKASA) Financial position further strengthened Value of listed assets from NOK 8 bn to 19 bn in 2005 NOK 1.1 bn net interest-bearing receiveable in holding structure Dividend proposal: NOK 6.50 per share 4Q05 Status and outlook 4 2

3 Recap From industrial vision to reality Before 2000 Aker and Kværner separate groups 2001/02 Kværner rescue operation Spring 2004 Yard merger and three-way split Summer 2004 Holding Co restructuring 2006 ARGI ARGI ARGI Aker Yards Shipyards Listed Aker Mar KVI O&G E&C Other Other Aker Yards Ship Yards KVI O&C E&C Other Other Aker Yards KVI Aker Kv Other Other KVI Aker Other Aker Yards Aker Kværner Aker Seafoods Other Aker Yards Aker Kværner Aker Seafoods Aker Am Shipping Aker Drilling Aker Capital Aker Matr Handl 4Q05 Status and outlook : The year in review Gaining industrial momentum January 05 February March April May June Aker sells AKVER and AKY shares. Parent refinanced Matson buys KPSI container vessels Kværner (UK) Ltd management buy-out 25 offshore vessel contr Ormen contracts combined ALT LNG OSG contract for 10 KPSI product tankers Acquisition of WFAa/NSH Color Line fast ferry AKS listed AKASA establ, part of Aker and listed 4Q05 Status and outlook 6 3

4 2005: The year in review Gaining industrial momentum July 05 August September October November December Blind Faith Merger with Kværner ASA agreed 7.8 bn Aker H-6e contracts agreed Aker Drilling placement: NOK 2.5 bn equity, 800 m bond Aker H-6e New Brittany ferries design Aker Hus sold for NOK 1.4 bn KVI merger completed Dividend NOK 14 per share AKD listed 4Q05 Status and outlook 7 Demonstrating shareholder value 1,0 3,7 23,8 3,9 Dividend Change after ,2 Market value listed assets ,3 Market growth OSEBX (index) 3,5 Growth over and above index Market value new listed shares AKS, AKASA, AKD, BJORGE Market value listed assets 15 Feb 2006 and 2005 dividend combined 4Q05 Status and outlook 8 4

5 4Q2005 Key P&L indicators Q04 Operating revenues NOK billion Quarter 4Q Year + 21 % 1,2 1,0 0,8 0,6 0,4 0,2 Quarter EBITDA NOK billion 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 0, Q04 4Q05 Year + 49 % Q05 Status and outlook 9 4Q2005 Key market indicators Q04 Order intake NOK billion Quarter 4Q Order backlog NOK billion % Year 20 At end of quarter Q04 4Q05 4Q05 Status and outlook 10 5

6 Status 4Q05 Aker Yards Increased activity in all segments, margins continued to increase Strong order intake in 2005, activity at the yards expected to increase in 2006 New capacity considered Aker Yards 4Q 4Q Year Year (in NOK million) Revenues EBITDA Order intake Order backlog Genesis trendsetter Chantiers de l Atlantique agreement * At end of period 4Q05 Status and outlook 11 Status 4Q05 Aker Kværner Drilling equipment boom Profit and margins continued to increase Record-high order backlog Market outlook good overall Aker H-6e awards Aker Kværner 4Q 4Q Year Year (in NOK million) Revenues EBITDA Order intake Order backlog Blind Faith award Awardwinning umbilical * At end of period 4Q05 Status and outlook 12 6

7 Status 4Q05 Aker American Shipping BP and Shell sign long-term charter agreements 4 of 10 PT now on charter, profit sharing to AKASA Productivity develops satisfactorily Aker American 4Q 4Q Year Year (in NOK million) Revenues EBITDA Order intake Order backlog * At end of period First PT in dock CV NB004 NB006 construction under way 4Q05 Status and outlook 13 Microsoft owerpoint Presentatio Status 4Q05 Aker Seafoods Operations continue to improve Improved product mix, fresh fish share exceeds 20 % in 2005 Redesign of political framework postponed by new government Synergy potential somewhat reduced Key figures 4Q 4Q Year Year (in NOK million) Revenues EBITDA bef n.r.i EBITDA Q05 Status and outlook 14 7

8 Status 4Q05 Aker Seafoods, Corp. Surimi market still strong Argentina: strike situation finally solved, but significant impact on 2005 Krill project according to plan, vessel upgrade under way Promising surimi project at Faroe Islands, upgraded vessel in operation in 4Q Fleet overview Factory-trawlers Centurion Argentina, surimi production A Navigator Faroes, surimi production Næraberg Norway, idle Saga Sea Antarctic, Krill, upgrading Heather Sea Canada, idle Long-liners Antarctic I Argentina, idle Antarctic II Argentina, partly in op Antarctic III Argentina, idle * NBW = Northern Blue Whiting 4Q05 Status and outlook 15 Status 4Q05 Aker Material Handling Another quarter with growth in revenues and profits Realized margins continued to climb due to improved operational and sales efficiency Market situation improved, satisfactory, good order intake Municipal tax archives, Nordsjælland, Denmark Key figures 4Q 4Q Year Year (in NOK million) Revenues EBITDA Order intake Order backlog Warehouse solution for Instyle, Denmark * At end of period 4Q05 Status and outlook 16 8

9 Status 4Q05 Aker Drilling Construction contracts confirmed Strong underlying market trends Stepping up activity COO in place Marketing efforts gaining pace Contracts with Aker Kværner confirmed in 4Q05, construction on schedule Aker Drilling listed on Oslo Stock Exchange 21 December Attractive features for development drilling 4Q05 Status and outlook 17 Aker Drilling Strong rig market Current 1 Year Ago 100,0 % Utilization rate %) 80,0 % 60,0 % 40,0 % 20,0 % 0,0 % Africa - Other Africa - West Asia - Black Sea Asia - Far East Asia - South Asia - SouthEast Australia Europe - East Europe - North Sea Mediterranean MidEast - Persian Gulf MidEast - Red Sea N. America - Canadian N. America - Canadian N. America - Mexico N. America - US Alaska N. America - US GOM S. America - Brazil S. America - Other & Carib. S. America - Venezuela Source: 4Q05 Status and outlook 18 9

10 Aker Drilling Number of exploration wells from mobile drilling units wellbore_purpose WILDCAT APPRAISAL Year Source: Rystad Energy; NPD 4Q05 Status and outlook 19 Aker Drilling Growing high-end rig supply shortage # rigs Deepwater 1 and harsh environment drilling 90 Current supply 10 4Q05 Status and outlook On order Potential yard capacity 111 Total supply Demand 2010E Supply deficit estimated at units by 2010 Current world deepwater and harsh weather rig fleet at 100% utilization Potential supply expansion from 90 to 111 rigs by 2010E Demand to reach >150 rigs, but constrained by rig supply 1 ) Deepwater: >4,000ft of water depth 10

11 Aker Drilling Stepping up activity 1 Attractive rig contracts Competitive delivery times World class contractor 2 Equity and convertible bond Bank debt IPO 3 2 Rig employment contracts Permanent management and organization Exercise rig option Negotiating shorter delivery time for AD 1 and AD 2 Negotiating 3 months extension of options 4Q05 Status and outlook 21 Aker Floating Production Aker Floating Production Time to market is key Key management in place Smart FPSO concept Operation in areas with benign / non-harsh environment Customer base will be small and medium sized oil companies To build minimum 4 FPSOs Customer interaction has started SMART FPSO 4Q05 Status and outlook 22 11

12 Aker Floating Production Market rationale - energy demand Mbd OPEC spare production capacity Production Global demand New capacity required Declining production in existing fields Balanced marked: Need to add 5-7 mbd gross new capacity annually Oil majors: Have money and technology, lack access to upstream acerage/equity oil! 4Q05 Status and outlook 23 Sources: Econ Aker Floating Production Supply deficit is expected in the FPSO market Significant demand for new FPSO in coming years Demand for FPSOs Portion of contractor owned FPSO is up from 30% in 1990 to 50% in 2005 Typical clients will be small and mid sized oil companies without large in-house engineering capacity F The FPSO market is growing by approx. 10% p.a. 4Q05 Status and outlook 24 Source: Enskilda, Infield, FPSO contractors, Oil companies, IMA 12

13 Aker Floating Production Large number of potential customers 4Q05 Status and outlook 25 Aker Floating Production Aker Floating Production 4Q05 Status and outlook 26 13

14 Details 4Q financials Bengt A Rem Executive Vice President & CFO Aker group consolidated EBITDA by main business 4Q 4Q Year Year (in NOK million) Revenues EBITDA Key figures: Aker Kværner Aker Yards Aker American Shipping * Aker Seafoods ASA ** Aker Material Handling Other, eliminations (227) (83) (185) (194) Order intake Order backlog Q05 Status and outlook 28 * Aker acquired AKASA in June This company s profit is listed above, but eliminated in group consolidated numbers. The acquisition is refelected in the group balance as of and in the group order reserve at the end of the second quarter ** Before non-recurring items 14

15 Aker group consolidated Income statement 4Q 4Q Year Year (in NOK million) Operating revenues Operating profit (EBITDA) Depreciation, impairment changes Non-recurring items Operating profit Net financial items Other profits Profit before tax Tax Profit after tax Minority share Majority share Q05 Status and outlook 29 Aker group consolidated Balance sheet (in NOK million) Tangible and non-tangible fixed assets Other fixed assets Cash and interest bearing receivables Other current assets Total assets Shareholders equity Minority interests Subordinated liabilities Interest-bearing debt Interest-free debt Equity and liabilities Net interest bearing debt(-)/assets(+) Equity ratio (%) 23 % 27 % 26 % 4Q05 Status and outlook 30 15

16 Aker ASA and holding companies Balance sheet Market (in NOK million) value Tangible and non-tangible fixed asset Long-term interest bearing items Long-term financial assets Other current assets Cash and interest bearing receivables Total assets Shareholder s equity Non-interest bearing liabilities Interest bearing liabilities (internal) Interest bearing liabilities (external) Equity and liabilities Net interest bearing debt (-)/assets (+) Equity ratio 68 % 69 % 73 % 87 % 4Q05 Status and outlook 31 Aker ASA and holding companies Debt and liabilities overview Interest bearing debt NOK mill Maturity Bond AKE AKS convertible Bond AKER Bond AKER Bank debt and other 272 Total external Internal debt 254 Total Interest bearing assets NOK mill Cash + liquid assets Interest-bearing fixed assets Total Net int-bearing items Debt to Kværner was settled in the merger with Aker Maritime Finance AS 4Q05 Status and outlook 32 16

17 Aker ASA and Holding companies Profit and loss statements Year (in NOK million) 2005 Sales gains Operating expenses (104) EBITDA Depreciation (9) Net financial items 8 Profit before tax Q05 Status and outlook 33 The road ahead Leif-Arne Langøy President & CEO 17

18 Building An industrial GROUP Aker American Shipping An industrial SYSTEM Recent history 4Q05 Status and outlook 35 Aker: How we create value A unique combination of skills Unique combination of industrial platform and technology and access to financial resources and innovation capabilities We create value through active industrial ownership 4Q05 Status and outlook 36 18

19 Aker: Whoweare Our vision and values HSE mindset We take personal responsibility for HSE because we care Delivering results We deliver consistently and strive to beat our goals Open and direct dialogue We encourage early and honest communication Vision To be the preferred partner through... Customer drive Building customer trust is key to our business Hands-on management We know our business and get things done People and teams All our major achievements are team efforts 4Q05 Status and outlook 37 Aker: What we do Building premier companies Create business opportunities Improve existing businesses Divest and rebalance portfolio Acquisitions New ventures Investments Projects Predictable project execution Risk management Synergy capture across business units / areas Fertilization of best practices across businesses Divestments Core/non-core Weighting investments up and down 4Q05 Status and outlook 38 19

20 Building premier companies Recent Aker cases Create business opportunities Improve existing businesses Divest and rebalance portfolio Aker Drilling Aker Hus Alstom Marine acquisition Westfish acquisition Aker American Shipping Aker Floating Production 4Q05 Status and outlook 39 Capture synergies (sourcing, people, insurance, Nøtteknekkeren) Aker Seafoods reorganization Aker Yards shipyard restructuring Improve project execution models Margin improvement and risk-to-profit Reduced holding in AKVER and AKY Divestments Aker Kværner Pulp & Power Atlas Stord Aker Kværner Industrielt Vedlikehold Aker Kværner Process Autom Systems Rebalancing portfolio Growing in oil, gas and shipbuilding Aker revenues by industry Other Eng & Constr Shipbuilding Oil & Gas 24 % 32 % 23 % 29 % 18 % 34 % Sale of Pulp & Power reduces E&C revenues with NOK 4,5 bn Acquisition of Alstom Marine adds NOK 4.8 bn revenues to shipbuilding 34 % 45 % 45 % Organic growth adds revenues to Oil & Gas adj 4Q05 Status and outlook 40 20

21 Share price Aker discount reduced Aker ASA NAV discount in % Source: Enskilda Create new projects in Aker ASA Drive improvements in business units Simplified legal and financial structure Transparency through improved communication Dividend policy clarified... and dividends paid 4Q05 Status and outlook 41 Dividend policy Aker ASA s dividend policy supports the company s ambition to maintain a solid balance sheet and liquidity reserves adequate to handle future obligations. The company s objective is to pay annual dividends of 2-4 percent of the company s net asset value. The calculation of the net asset value is based on the share price of Aker s listed investments. For the 2005 and 2006 accounting years, dividend payments will most likely be in the lower end of the stipulated interval. Approved by the Board of Directors, February Q05 Status and outlook 42 21

22 We create long-term value for all stakeholders by building premier companies in sectors where we have strong knowledge and execution capabilities 4Q05 Status and outlook 43 Enclosure Aker s holding of listed shares Company Shares Share Value 1 Aker Kværner ASA % Aker Yards ASA % Aker Am Shipping ASA % Aker Seafoods ASA % Aker Drilling ASA % Bjørge ASA % 245 Odim ASA % 134 Total Market value in NOK million as of 15 Feb Reduced to 50.4 % after convertion of bond and new shares, pending AGM approval 3 Odim shares are owned by Aker Invest which in which Aker owns 60 % 4Q05 Status and outlook 44 22

23 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 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 Presentation. Although Aker 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 ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, 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 presentation 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. 4Q05 Status and outlook 45 23