3rd Quarter 2004: Status and outlook

Transcription

1 3rd Quarter 2004: Status and outlook Leif-Arne Langøy, President & CEO Bengt A Rem, CFO Oslo, 26 November 2004 Agenda Group update Details 3Q04 performance Concluding remarks Q&A session Leif-Arne Langøy Bengt A. Rem Leif-Arne Langøy The figures in this presentation are pro forma and picture as if the restructuring was completed on 1 January All numbers are in NOK million unless stated otherwise. Aker 3Q04 presentation 2 1

2 Three centuries of Aker history Est 1841 Peter Steenstrup First CEO Kjell I Røkke Main owner Oluf A Onsum, founder Norcem (offshore, cement) RGI Davy/John Brown/Trafalgar Kværner Masa-Yards Aker Kværner Aker Yards Aker Seafoods Aker Matr Handl Aker 3Q04 presentation 3 Group structure Ownership Parent and holding companies 58% 75% 100% 100% Illustration Aker Kværner Aker Yards Aker Seafoods No plan to reduce ownership in main business units Aker Material Handling Other Aker 3Q04 presentation 4 2

3 Group highlights Record order backlog: NOK 56 billion Main markets develop favourably Aker is well positioned with its technology and solutions 3Q profits on track NOK 1.8 billion EBITDA Reduced revenues in Aker Yards, continued good operations Strong profit growth in Aker Kværner. Improved performance in Aker Seafoods and Aker Material Handling Sound financial platform Restructuring completed with listing of Short-term debt repaid and refinanced Aker 3Q04 presentation 5 Key indicators 60 Backlog (NOK bn) 60 Revenues (NOK bn) 2,5 EBITDA (NOK bn) ,0 Other ,5 Aker Material Handling ,0 Aker Seafoods ,5 0,0 Aker Yards Aker Kværner 0 end 2003 YTD YTD 2003 YTD ,5 YTD 2003 YTD 2004 Aker 3Q04 presentation 6 3

4 and holding companies Strong financial structure Kværner Aker Yards 7.2 bn 8.3 bn = NOK 108 per Aker share* = NOK 94 per Aker share* Aker Kværner Market value listed shares (25 Nov 2004) Aker 3Q04 presentation 7 Book value listed and unlisted investments Internal debt External debt 3.1 bn 0.9 bn 2.2 bn Gross debt 1.9 bn Cash and IB assets 1.2 bn Net IB liabilities = NOK 15 per Aker share* * Adjusted for shares owned by Aker 3Q Highlights Aker Kværner Profits continue to climb, targets confirmed Record order backlog, generally strong markets Good progress in projects Key figures 3Q 3Q YTD YTD (in NOK million) Revenues EBITDA Order intake Order backlog * * Employees * * Aker 3Q04 presentation 8 * At end of period 4

5 Aker Kværner Strong order intake Order intake (NOK mill) Ormen Lange MIC Kashagan topsides Frigg decom (booked in 4Q) 0 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 Aker 3Q04 presentation 9 Aker Kværner World-class product companies Approx dedicated employees in specialised companies Aker 3Q04 presentation 10 5

6 3Q Highlights Aker Yards Margins still satisfactory, activity reduced Strong order intake 2004 targets revised up Good progress in projects Key figures 3Q 3Q YTD YTD (in NOK million) Revenues EBITDA Order intake Order backlog * * Employees * * Aker 3Q04 presentation 11 * At end of period Aker Yards Strong order intake Order intake (NOK mill) 3Q 03 4Q 03 1Q 04 2Q 04 3Q 04 Icebreaking PSVs Icebreaking CV Ultra-Voyager PSVs Aker 3Q04 presentation 12 6

7 Aker Yards Timely change initiatives The new Aker Finnyards The new Aker Brattvaag One company, 3 yards New name Aker Finnyards Oy Work groups identify potential synergies, needed actions and org changes One group comprising all yards in the Northwest region in Norway Goal: to increase competitiveness Initiated 7 June 2004, and implemented pr 1 October 2004 Aker 3Q04 presentation 13 3Q Highlights Aker Seafoods Strong sales, margins under pressure in Europe Limited harvesting Surimi market improves Key figures 3Q 3Q YTD YTD (in NOK million) Operating revenues EBITDA Employees 1 274* 1 250* Aker 3Q04 presentation 14 * At end of period 7

8 Aker Seafoods Group overview Revenues split Aker Seafoods Corp 19 % 81 % Norway Seafoods JFK Seafood 1 factory trawler Harvesting 18 licences 12 trawlers ASC Far East 2 factory trawlers Processing 8 process plants ASC South America 2 factory trawlers 3 long-liners Distribution Pan-European network Aker 3Q04 presentation 15 Norway Seafoods Value chain Catch MT Purchased MT Onshore processing = MT Market Havfisk Lofoten Trålerrederi Hammerfest Industrifiske Own facilities in Norway and Denmark MT External MT Production Norway MT Production Denmark MT Round fish to market MT Frozen products Fresh products Other consumer products 55% 40% 5% Aker 3Q04 presentation 16 8

9 Norway Seafoods in blue-green alliance Fresh fish on the dinner plate 364 days a year Strategic alliances Harvesting and landing Onshore processing Sale & Marketing Distribution in pan-european network Aker 3Q04 presentation 17 Norway s fisheries Inefficient catch pattern Fleet idle 6 months/year Tonnes catch People laid off Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Aker 3Q04 presentation 18 9

10 3Q Highlights Aker Material Handling Consolidation turn losses into profit in 3Q04 Increased order intake YTD Steel prices up, margins maintained Pro forma 3Q 3Q YTD YTD continuing business Revenues EBITDA Order intake Order backlog 216* 270* Employees 718* Aker 3Q04 presentation 19 * At end of period Aker Material Handling Consolidation EURO million Sales 2000 Fixed budget rates Matr UK & Fra Asia- Handl Pacific Divestitures Redirack Comms Constr 2003/ US Finland Cont busn revenues Aker 3Q04 presentation 20 10

11 Aker Material Handling Climbing towards sustainable profits EURO million Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct EBITDA 12-mnth revolving Aker 3Q04 presentation 21 Aker Material Handling Strong regional brands Relative share of sales 38% 22% 40% Factory: Hensmoen Norway Factory: Panningen Holland Factories: Laubach Halle Germany Sales offices Austria Belgium Czech Republic Denmark France Germany Holland Hungary Italy Norway Poland Sweden Switzerland Slovakia Aker 3Q04 presentation 22 11

12 Aker Material Handling Market segments Industrial storage systems Archive and filing systems Share of sales 70% 30% Pallet racks, shelving, machines Archives, shelves, filing systems/cabinets Aker 3Q04 presentation 23 Aker Material Handling Important VW award Volkswagen Baunatal, Germany With a contract value of EUR 2.3 million, the VW order is one of the biggest single orders for shelving systems in Germany VW to build two new warehouses at Baunatal facility Ordered Dexion HI280 shelving system shelves 80 x 46 metres shelves 37 x 23 metres Production at Hensmoen, Norway and Laubach, Germany Aker 3Q04 presentation 24 12

13 Agenda Group update Details 3Q04 performance Concluding remarks Q&A session Leif-Arne Langøy Bengt A. Rem Leif-Arne Langøy Aker 3Q04 presentation 25 Aker group consolidated EBITDA by main business 3Q 3Q YTD YTD Year (in NOK million) Op revenues EBITDA Aker Kværner Aker Yards Aker Seafoods Aker Material Handling * Other, eliminations * * Aker Material Handling numbers are pro forma for continuing business. This adjustment also affects eliminations Aker 3Q04 presentation 26 13

14 Aker group consolidated Income statement 3Q 3Q YTD YTD Year (in NOK million) Op revenues EBITDA Depreciation Amortisation Special operating items Operating profit (EBIT) Associated companies Net financial items Special financial items Profit before tax Tax Net profit Aker 3Q04 presentation 27 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 Equity ratio Aker 3Q04 presentation 28 14

15 and holding companies Balance sheet (in NOK million) Tangible and non-tangible fixed assets Long-term interest bearing items Long-term financial assets Other current assets Cash and interest bearing receivables Total assets Shareholders equity Non-interest bearing liabilities Interest bearing liabilities Equity and liabilities Net interest bearing debt Equity ratio 69 % 68 % Aker 3Q04 presentation 29 Aker Seafoods Key financials 3Q 3Q YTD YTD Year (in NOK million) Op revenues EBITDA Profit before tax Comments year to date Depreciation totalled NOK 117 million YTD 2004 Net financial items was NOK -55 million YTD 2004 Net interesting-bearing debt was NOK 361 million at end of September, down from NOK 456 million three months earlier Cash was NOK 138 million at end of September, up from NOK 38 million at the end of June Aker 3Q04 presentation 30 15

16 Aker Material Handling Key financials Actual numbers 3Q 3Q YTD YTD Year (in NOK million) Operating revenues EBITDA Profit before tax Order intake Order backlog 270* 237* Comments year to date Table shows actual numbers, reflecting past financial and operational structure. Proforma figures for continuing business are shown on slide 20 External debt reduced to approx NOK 290 million at the end of September, further reduced since to approx NOK 150 million Aker 3Q04 presentation 31 * At end of period and other activities Key financials 3Q 3Q YTD YTD Year (in NOK million) Operating revenues EBITDA Profit after tax Comments year to date Includes parent companies costs NOK 72 million Legend assets sold in 3Q This segment includes Atlas Stord Legend Properties Wyndmore and other companies in holding company structure NorSea Group (33,5%) Geco Triton Aker 3Q04 presentation 32 16

17 Agenda Group update Details 3Q04 performance Concluding remarks Q&A session Leif-Arne Langøy Bengt A. Rem Leif-Arne Langøy Aker 3Q04 presentation 33 Aker Material Handling Profitable Record order backlog Sound financial platform 17

18 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 and 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 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. is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither 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. Aker 3Q04 presentation 35 18