#1Credit Investor Presentation 2019 May 2019 Presenters Svein Stoknes Chief Financial Officer - Fredrik Berge - Investor Relations Officer Contact IR: [email protected] Aker Solutions ストメン#2Content Company Overview Strategy & Market Outlook Financials & Recent Developments Q&A 2019 Aker Solutions telenor arena May 16, 2019 Slide 2 Aker Solutions#3Our Vision A leader in forging a sustainable future for the global energy industry and the world it serves 15,000+ EMPLOYEES 20+ COUNTRIES 176+ YEARS OF EXPERIENCE 50+ DEEB CAT AkerSolutions AkorSolutions LOCATIONS Customer drive HSSE mindset People and teams Open and direct dialogue Hands-on management Delivering quality results#4We deliver integrated solutions from subsea to surface and through the life of an energy asset Field Planning, Feasibility and Concept Studies Fixed and Floating Production Systems Engineering, Procurement and Management Assistance Subsea Production Systems Subsea Pumps, Compression and Processing Hook-Up and Completion Maintenance, Modifications and Operations Asset Integrity Management Lifecycle Services Carbon Capture and Storage Concept Pre-FEED FEED Detailed Design Fabrication Commissioning Operations Decommissioning Modifications Late Life Decommissioning#5- Our Heritage – The Development of Aker Solutions Sale of P&C* JACOBS Sale of WIS* EQT Reorganization of Aker Solutions Aker Solutions today Projects & Services Sale of MLS* to Cargotec CARGOTEC 2002 2010 2011 2013 2014 2016 Future 2019 Aker Solutions Aker Maritime KVÆRNER™ Merger of Aker Maritime and Kværner Demerger of Aker Marine Contractors EZRA HOLDINGS Demerger of EPC business KVERNER™ Demerger of Aker Solutions and Akastor AkerSolutions AKASTOR May 16, 2019 Slide 5 *Notes: WIS = Well Intervention Services MLS = Mooring and Loading Systems P&C = Process & Construction Aker Solutions#6Global Presence Canada United States 15,000+ 20+ 20+ 50+ EMPLOYEES 2019 Aker Solutions Norway United Kingdom ア Russia о Italy Cyprus Qatar Saudi Arabia UAE India China South Korea Ghana Brunei Nigeria Republic of Congo Malaysia Tanzania Brazil Angola COUNTRIES LOCATIONS Mozambique Australia May 16, 2019 Slide 6 Aker Solutions#7Principle Power OFFSHORE WIND SBM Offshore LEASED FPSO Saipem SURF Collaboration Across the Value Chain Cognite DIGITALIZATION 2019 Aker Solutions Alcatel FIBER OPTIC SOLUTIONS ABB POWER AND AUTOMATION MAN Energy Solutions COMPRESSION May 16, 2019 Slide 7 Aker Solutions#8The Value of Front End Differentiating Front End capabilities - a key enabler Subsea and Topside expertise ■ Optimized concept Early engagement in study and concept engineering - key to meeting cost challenges Reduce costs and risks Accelerate time to first oil Improving field economics and 'design to price' ■ Cooperation and dialogue Moving the break-even price in a meaningful way 2019 Aker Solutions FRONT END FRONT END Time Project cost Ability to influence project cost PROJECT EXECUTION LIFE OF FIELD Concept FEED E P C Operation May 16, 2019 Slide 8 Aker Solutions#9Record Demand for Early-Phase Capabilities ■ All-time high of 150 Front End awards in 2018 ■ Strong international growth with studies for international markets more than doubling ■ 11 FEEDS led to full Projects ■ Increase in studies for larger and more complex projects Total Front-end awards International Front-end awards 4Q Early involvement is a key enabler to secure more work Front-end awards 2018 +21% 150 +121% 53 +70% 46 2017 124 24 27 (FEED= = Front End Engineering and Design) 2019 Aker Solutions May 16, 2019 Slide 9 Aker Solutions#10Digital Transformation Driving Value Reduce Time to First Oil Agile Concept Selection Compressed Timelines Improve Efficiency Reduced CAPEX Accelerated Engineering Enhance Quality Increased Collaboration Reduced Risk Improve Uptime Reduced OPEX Predictive & Preventive Maintenance Improve Design Quality Improved Decisions Incorporate operational experience#11LT ix3 an Aker Solutions company Life-of-Field Digital Solutions Integrated. Innovative. Insight. ■ Reduced Cost ☐ ■ Increased Efficiency Improved Predictability#12A New Energy Future Floating Offshore Wind Concept We create solutions to unlock energy safely and sustainably for future generations ■ 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 Low-carbon solutions ■ Subsea gas compression, LNG, CO2 removal, Electrification, Energy optimization, Collaboration across value chain etc. 2019 Aker Solutions May 16, 2019 Slide 12 Aker Solutions#13Setting the Industry Benchmark PROJECT Johan Castberg "Major Greenfield in the Barents Sea" Kaombo "The World's Largest Subsea Development" Frame Agreements "One of the World's leading deepwater operators" Brunei Shell Petroleum "Maintenance and Modification Management Services" Mariner "Largest Offshore Development in the UK" CUSTOMER equinor TOTAL • • • • BR • PETROBRAS NIH BRUNEI equinor DESCRIPTION • • • • • • One of the largest greenfield developments offshore Norway the next decade Providing the full Subsea Production System as well as Engineering, Procurement and management assistance for construction of the largest FPSO offshore Norway Aker Solutions has helped Equinor reduce investments by more than 50% (from about NOK 100 to 48bn, or breakeven from $80 USD/bbl to about $31 USD/bbl) 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 systems and work-over and tie-in systems The first deliveries started in the second quarter of 2015 Two major frame agreements, supporting Brazil's major pre-salt deepwater developments Delivering 60 well-sets with vertical subsea trees, control systems, tools and spares Delivering 8 manifolds (water/gas injection) to increase oil recovery Maintenance and modification management services at more than 200 offshore installations in the South China Sea Prolonging the life of the facilities, to support extended life-of-field Delivering engineering, construction and commissioning work for the major hook-up phase of the Mariner oilfield development in the UK North Sea Also providing maintenance and modifications services through a frame agreement Mariner is the largest new offshore development in the UK in more than a decade 2019 Aker Solutions May 16, 2019 Slide 13 Aker Solutions#14Setting the Industry Benchmark (cont'd) PROJECT Johan Sverdrup "The Making of a Giant" Moho "Largest Oil Development in Congo" Jansz "International breakthrough for Subsea Gas Compression" Zohr Gas Field "The World's largest umbilicals system" 2019 Aker Solutions CUSTOMER DESCRIPTION • • equinor • • 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 Executed a major FEED in 2014 which engaged one of the largest FEED teams ever assembled by Aker Solutions 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 Delivered 28 well-sets for the Moho Nord project in Congo Brazzaville • TOTAL • The country's largest oil development . Chevron • • • • • • eni • ROB Several new technology qualifications delivered successfully Master Contract, FEED as first call-off - operator Chevron with ExxonMobil & Shell Substantial cost and efficiency gains, boosting recovery, Lower carbon footprint Scope includes subsea compression station as well as an unmanned power and control floating platform 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 Providing a record 250 km of steel-tube umbilicals, to help the most populous Arab nation achieve self-sufficiency of natural gas Customers: Petrobel (Egyptian General Petroleum Corporation, EGPC) and Italian operator Eni) May 16, 2019 Slide 14 Aker Solutions#15Subsea 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 AkerSolutions#16Experienced Executive Management Customer Management Valborg Lundegaard 2019 Aker Solutions CFO Svein Stoknes Strategy Mark Riding Front End Knut Nyborg Products Egil Boyum Early Client Engagement CEO Luis Araujo COO Dean Watson Greenfield Projects Knut Sandvik PROJECTS Project Execution Brownfield Projects Linda L. Aase Subsea Lifecycle Services Dean Watson SERVICES Life-of-Field Services May 16, 2019 Slide 16 Aker Solutions#17HSSE - Health, Safety, Security and Environment 4.50 Total recordable injury frequency Lost time injury frequency We put the safety of our people first and strive for zero incidents 2019 Aker Solutions 4.00 3.50 3.00 2.50 2.00 1.50 AkerSolution 1.00 0.50 0.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1.97 0.55 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) May 16, 2019 Slide 17 Aker Solutions#18ESG - 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 sustainable operations and value creation over time to the benefit of shareholders and other stakeholders The Code of Conduct is Aker Solutions' key governing document, it outlines our ethical commitments and requirements, and sets expectations for personal conduct and business practices 2019 Aker Solutions Ensure sustainable operations and value creation over time to benefit all stakeholders May 16, 2019 Slide 18 Aker Solutions#19Risk 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 2019 Aker Solutions Aker Solutions has company- wide policies, procedures, tools, training and reviews, for active and systematic risk management May 16, 2019 Slide 19 Aker Solutions#20Strategy and Market Outlook www telenor arena#21Long Term Trends Shaping the Industry Transforming Businesses Low Carbon Consolidation and Collaboration Alliances and M&A within OFS offering a broader scope within the value chain. Strong focus in the industry towards collaborative approaches, especially with the customer Emergence of New Business Models - Alignment of production cash flow with spend – outcome based models, lower capex, renewed approach to life of field cost (Totex). Transition to services Role of Gas Growing operator production share of gas - LNG enabled; longer step outs, large bore systems, compression, Carbon Capture People Development Digitalization Human Capital System Innovation All electric modular systems, unmanned platforms, brownfield tie ins, subsea compression. Working closely with our clients to Co-Create solutions, especially with independents Efficient Operations Focus on zero incidents, quality and continuous improvement, carbon footprint, resource usage. Requirement to maintain industry cost competitiveness. Focus on Renewables Increased focused on alternatives such as Wind, Solar especially from existing clients 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. 2019 Aker Solutions Digitalization Disruptive business models, offerings and operations – data management, predictive services, analytics, digital twins May 16, 2019 Slide 21 Aker Solutions#22Five Strategic Themes Winning Customer Experience Strategic Partnerships • Deliver the best customer experience in the industry • Consistently maximize life- of-field value across every touchpoint 2019 Aker Solutions • Impactful Innovation Operational Excellence World-Class Services Aker Solutions AkerSolu Combine expertise with our strategic partners Deliver new sources of life-of-field value by combining our strengths ● Prioritize innovation that improves safety, environ- mental performance and boosts productivity New business models Excel at delivering on our commitments every time • Consistently drive operational excellence and continuous improvement Grow a focused world- class services business • Build on our strengths and capabilities to deliver new sources of value May 16, 2019 Slide 22 Aker Solutions#23Growing Offshore and Subsea Markets Offshore Final Investment Decisions (FIDs) Number of offshore FIDS 150 128 120 114 100 50 0 78 Actual Potential +18% 105 89 62 56 46 56 2011 2012 2013 2014 2015 2016 2017 2018 2019e (Source: Rystad Energy DCube) Increasing Subsea Tree Awards Following FIDs Number of Subsea Trees 600 Historical 547 418 400 301 200 0 Estimate (Goldman Sachs) +10% 296 270 247 203 167 89 ■ Significant underinvestment past four years ■ Record high free cash flow among E&Ps ■ Break-even costs lowered - new projects emerging ■Increased sanctioning activity, despite oil price volatility ■ E&P spending forecasted to increase ■ Expect markets to remain competitive near term ■ Still overcapacity in some segments ■ AKSO well positioned in key regions going forward ■ Tendering for NOK 55 billion - good balance of regions and segments 2011 2012 2013 2014 2015 2016 2017 2018 2019e (Source: Goldman Sachs equity research March 25, 2019) 2019 Aker Solutions May 16, 2019 Slide 23 Aker Solutions#24Financials and Recent Developments www telenor arena#25Main Developments Delivering solid operational results Increased activity – 2018 revenue up 12%, 2019 revenue guidance up 10% Stable underlying margins through the downturn ■ Solid project execution - all major projects progressing as planned ■ Investments in digitalization and floating offshore wind Well positioned to capture growth ■ Solid financial position with NOK 6.9 bn liquidity buffer Well positioned in key regions globally Streamlined organization and manufacturing set-up. On track with phase 2 of cost-efficiency program Scale and Operational leverage to drive margin expansion Winning new orders through differentiation. ◉ Increased order intake to NOK 25 bn in 2018 (1.0x BtB) with awards in several regions globally All-time high of 150 Front-end awards in 2018 ■ International breakthrough award for industry-leading Subsea Gas Compression with Chevron, Australia ■ Healthy backlog of NOK 33 bn, improves visibility ☐ Improving outlook ■ Activity is increasing, though market remains competitive ■ Tendering activity increased to NOK 55 bn ■ Simplified and standardized product portfolio to optimize field developments ■Building on differentiating Front-End capabilities to capture opportunities 2019 Aker Solutions May 16, 2019 Slide 25 Aker Solutions#26Key Annual Figures (NOK billion) Revenue 25.2 EBITDA 30 2.5 Order Intake Order Backlog NIBD/EBITDA Equity Ratio 1.8 25.4 35.1 0.2x 36% Excl. special items 40 40 2.0x 40% 25 2.0 30 30 1.5x 30% 30% 20 1.5 20 20 1.0x 20% 15 1.0 10 10 10 0.7x 0.6x 0.5x 10% 5 0.5 36% 36% 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 2019 Aker Solutions May 16, 2019 Slide 26 Aker Solutions#27On Track With Phase 2 of Cost-Efficiency Program Target of 30 percent by end of 2017 achieved Minimum 20 percent additional cost-efficiency improvement by end of 2021 2015 2019 Aker Solutions 30% 2017 20% 2021 May 16, 2019 Slide 27 Aker Solutions#28Stable Underlying Margins Through Downcycle Aker Solutions Revenue NOK billion 10 9.6% 8.9% 9 8.8% 8.5% 7.9% 8.5% 8.1% 8.0% 7.9% 8 M 6 01 5 4 3 2 EBITDA* Revenue Margin 10% 9% 7.8% 8% 7.4% 7.5% 7.5% 7.0% 7.1% 7.1% 7.1% 6.8% 7% 6% 5% 9.2 8.5 4% 8.0 7.9 7.5 7.3 7.0 7.0 6.5 6.4 6.5 6.3 6.0 6.1 3% 5.4 5.4 5.5 5.2 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 2019 Aker Solutions 2% 1% 0% May 16, 2019 Slide 28 Aker Solutions#29Reporting Segments (NOK billion) Projects Services 7.8% 15.7% Revenue 30 7.3% 6.8% 6.9% 8% Ebitda- margin* Revenue 8 16% Ebitda- 12.4% 13.3% 13.6% margin* 6% CO 6 12% 20 20 4% 4 8% 25.7 6.3 10 20.6 19.9 5.0 5.1 17.7 4.6 2% 2 4% 0 2015 2016 0% 2017 2018 90 0 0% 2015 2016 2017 2018 Key regions: Africa, Asia, Brazil, North Sea Employees: 7,188 (2017: 6,980) Revenue share, 2018 Services 20% 25.2 NOK billion 80% Projects Key regions: Africa, Brazil, Canada, North Sea Employees: 5,473 (2017: 5,036) EBITDA share, 2018 *Ebitda excludes special items (for reference, Aker Solutions also reports an 'Other' segment containing the corporate center and various other items held centrally) 2019 Aker Solutions Services 34% 1.8 NOK billion 66% Projects May 16, 2019 Slide 29 Aker Solutions#30Order 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 4.2 4.7 2.5 20 12.7 35 31 23 35 25 24 17 1.8 5.7 3.1 10 2.4 2019 2020 2021 1.6 2022→ 0 2014 2015 2016 2017 2018 Order Backlog by Segment NOK billion 50 40 30 20 20 10 Order Backlog by Market Projects Services 1Q 2019 1Q 2018 12% 8% 8% 11% 7% 2% 11% 7% 4% 5% 33.3 37.6 NOK billion NOK billion 0 2014 2015 2016 2017 2018 58% 2019 Aker Solutions 68% Africa Asia Pacific North America Norway United Kingdom South America May 16, 2019 Slide 30 Aker Solutions#31Cashflow and Financial Position (per 1Q 2019) ■ Cashflow from operations at minus NOK 303 million ■ Working capital¹ at NOK 248 million, and minus NOK 62 million when excluding the effects of IFRS 16 ■ Net interest-bearing debt² NOK 940 million and leverage 0.5x ■ Gross debt² of NOK 2.9 billion ■ Available liquidity NOK 6.9 billion (cash NOK 1.9 billion and RCF NOK 5.0 billion) Working Capital¹ NOK million 1,000 500 0 -500 -1,000 -1,500 -2,000 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 Debt Maturity Profile ² NOK million 6,000 4,000 Drawn debt Undrawn revolving credit facility 5,000 2,000 1,525 1,069 148 148 0 2019 2020 2021 2022 2023 2,028 1,686 Net Interest-Bearing Debt and Leverage² NOK million, x times Bank Covenant 3.5x 2,500 3.5x 3.0x 2,000 2.5x 1,500 2.0x 1.4x 968 970 1.2x 940 1.5x 1,000 0.8x 0.7x 475 1.0x 500 247 0.2x 405 03x 347 0.5x 0.2x 0.5x 0 1Q 17 2Q 17 3Q 17 0.0x 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 2 Excluding the effects of IFRS 16 as covenants are based on frozen GAAP 1Q 19 2019 Aker Solutions May 16, 2019 Slide 31 Aker Solutions#32Financial Policy Financial policy1 Net Interest-Bearing Debt / EBITDA target = 1.0x Bank covenants 3.5x ■ Net Interest-Bearing Debt/Equity < 0.5 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 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 2019 Aker Solutions OOL May 16, 2019 Slide 32 Aker Solutions#33Summary - 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 2019 Aker Solutions May 16, 2019 Slide 33 Aker Solutions#34Q&A / Appendix www telenor arena#351Q 2017 2Q 2017 6 (1) 81 3 4 Special items and IFRS 16 Leasing NOK million, (Gain) / Loss Special items (EBITDA) Onerous leases Restructuring Non-qualifying hedges 4800 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 33 15 15 (0) 8 (2) 86 7 5 31 10 (6) 10 (3) (4) 33 (3) 39 3 (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 Total special items EBIT 7 100 25 172 304 (27) 12 0 1 6 31 18 24 22 22 25 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 Effect on EBIT Effect on Net income before tax Effect on Net income Effects included in the reported figures (1) 22 (28) (18) 2019 Aker Solutions May 16, 2019 Slide 35 Aker Solutions#36General Basis for Preparation This financial presentation provides highlights for the quarter for Aker Solutions, a Norwegian limited company listed on the Oslo Stock Exchange. The financial information is not reported according to requirements in IAS 34 (Interim Financial Reporting) and the figures are not audited. The same measurement principles as presented in the Annual Report 2018 have been used preparing this presentation, with the exception of accounting for lease contracts. IFRS 16 (Leasing) has been implemented as of January 1, 2019. A description of the transition effects and accounting principles are included in note 32 of the 2018 Annual Report available at https://akersolutions.com/annual-reports The effects from implementing IFRS 16 Leasing are significant for Aker Solutions. Comparative figures are not restated. The effects on EBITDA and EBIT are presented in the "special items" section. Alternative Performance Measures Aker Solutions discloses alternative performance measures in addition to those normally required by IFRS as such performance measures are frequently used by securities analysts, investors and other interested parties. Alternative performance measures are meant to provide an enhanced insight into the operations, financing and future prospects of the company. Profit Measures as EBITDA and EBIT terms are presented as they are used by financial analysts and investors. Special items are excluded from EBITDA and EBIT alternative measures to provide enhanced insight into the financial development of the business operations and to improve comparability between different periods. EBITDA is short for earnings before interest, taxes, depreciation and amortization. EBITDA corresponds to the "operating income before depreciation, amortization and impairment" in the consolidated income statement in the annual report. EBIT is short for earnings before interest and taxes. EBIT corresponds to "operating income" in the consolidated income statement in the annual report. Margins such as EBITDA margin and EBIT margin are used to compare relative profit between periods. EBITDA margin and EBIT margin are calculated as EBITDA or EBIT divided by revenue. Special items may not be indicative of the ongoing operating result of cash flows of the company. Profit measure excluding special items is presented as an alternative measures to improve comparability of the underlying business performance between the periods. Special Items Impacting Profit Measures Services 1Q 2019 1,299 1Q 2018 1Q 2019 1,159 NOK million Revenue Non-qualifying hedges (Gain)loss sale of PPE Sum of special items excluded from revenue Revenue ex. special items EBITDA Restructuring cost Non-qualifying hedges (Gain)loss sale of PPE Transaction costs and other Sum of special items excluded from EBITDA EBITDA ex. special items EBITDA margin EBITDA margin ex. special items EBIT Sum of special items excluded from EBITDA Impairments Sum of special items excluded from EBIT EBIT ex. special items EBIT margin EBIT margin ex. special items Net income Sum of special items excluded from EBIT Non-qualifying hedges Tax effects on special items Net income ex. special items Net income to non-controlling interests Net income ex. non-controlling interests Average number of shares (in '000) Earnings per share¹) Earnings per share ex. special items 2) 1) 2) 1Q 2019 5,952 Projects 1Q 2018 4,239 Other/eliminations 250 105 1-22-2 1Q 2018 85 Aker Solutions 1Q 2019 1Q 2018 7,256 5,483 7 (50) 0 7 (50) (43) 0 (43) 5,952 4,239 1,299 1,159 43 7,256 5,440 477 312 186 135 (30) (22) 634 425 1 7 1 (0) 3 7 (2) (3) (2) (3) (50) (50) (0) 4 1 2 5 1 11 1 (52) 3 (41) 478 322 187 135 (29) (74) 636 384 8.0 % 8.0 % 7.3 % 7.6 % 14.3 % 14.4 % 11.7 % 11.7 % 8.7 % 7.8 % 8.8 % 7.1 % 280 173 120 94 (75) (41) 325 226 1 11 1 1 (52) 3 (41) - 15 (0) (0) 2 14 1 26 1 (0) (52) 5 (27) 281 199 120 93 (72) (94) 329 199 4.7 % 4.7 % 4.1 % 9.2 % 8.1 % 4.5 % 4.1 % 4.7 % 9.3 % 8.0 % 4.5 % 3.7 % 149 105 5 (27) 3 (2) 2 9 158 86 (1) (2) 157 83 271,533 0.54 271,533 0.38 0.58 0.31 -232 Earnings per share is calculated using Net income, adjusted for non-controlling interests, divided by average number of shares 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 2019 Aker Solutions May 16, 2019 Slide 36 Aker Solutions#37General Financing Measures Alternative financing and equity measures are presented as they are indicators of the company's ability to obtain financing and service its debts. Liquidity buffer is a measure of available cash and is calculated by adding together the cash and cash equivalents and the unused credit facility. NOK million Cash and cash equivalents Credit facility (unused) Liquidity buffer 1Q 2019 1Q 2018 1,872 2,607 5,000 6,872 5,000 7,607 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 short-term financial assets. NOK million Non-current borrowings 1Q 2019 1Q 2018 Current borrowings 1,125 495 1,764 2,745 Gross debt 2,889 3,241 Current interest-bearing receivables (30) (131) Non-current interest-bearing receivables Cash and cash equivalents 2) (47) (27) (1,872) (2,607) 1) Net debt 940 475 1) Excluding effects of IFRS 16 2) Net Current Operating Assets (NCOA) or Working Capital is a measure of the current capital necessary to maintain operations. Working capital includes trade receivables, trade payables, accruals, provisions and current tax assets and liabilities. NOK million Inventory Trade and other receivables Current tax assets Trade and other payables Provisions 1Q 2019 320 Non-current interest-bearing receivables are included in Other non-current assets in consolidated balance sheet 1Q 2018 9,694 334 7,251 101 145 (9,235) (8,264) Net debt to EBITDA (leverage ratio) is a key financial measure that is used by management to assess the borrowing capacity of a company. The ratio shows how many years it would take for a company to pay back its debt, if net debt and EBITDA are held constant. The ratio is one of the debt covenants of the 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 month period. If a company has more cash than debt, the ratio can be negative. (820) (841) Current tax liabilities (121) (47) NOK million Effects of IFRS 16¹) 1Q 2019 309 Net current operating assets (NCOA) Gross interest bearing debt 2,889 1Q 2018 3,241 248 (1,422) 1) Reclassification of onerous lease provisions and lease accruals for rent-free periods previously reported as part of NCOA. Starting from January 1, 2019 these amounts are reported as part of ROU asset under IFRS 16 Cash and cash equivalents Net debt (1,872) (2,607) 1,017 633 EBITDA last twelve months 1,879 1,589 Restructuring cost and other special items Adjusted EBITDA last twelve months 35 94 1,914 1,684 Net debt to EBITDA (leverage ratio) 0.53 0.38 2019 Aker Solutions May 16, 2019 Slide 37 Aker Solutions#38General Order Intake Measures 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. Order intake includes new signed contracts in the period in addition to expansion of existing contracts. For construction contracts, the order intake is based on the signed contract value excluding potential options and change orders. For service contracts, the order intake is based on the estimated value of firm periods in the contracts. Order backlog represents the estimated value of remaining work on signed contracts (as a reminder, the backlog does not include part of the Services business, which is short cycled or book-and-turn in nature, or potential growth or options on existing contracts). 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. IFRS 16 Leasing Background The new IFRS 16 Leasing standard is effective from January 1, 2019. The new leasing standard has significantly changed how the company accounts for its lease contracts for land, buildings and machines previously accounted for as operating leases. An on-balance sheet model similar to the financial leases in IAS 17 has been applied to all contracts that contain a lease. Sub-leases covering the major part of 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 lease standard using a modified retrospective method with cumulative impact recognized in retained earnings on January 1, 2019. Comparative figures are not restated. More information about transition effects and accounting principles for IFRS 16 is available in note 32 in the 2018 Annual Report available at https://akersolutions.com/annual-reports NOK million Projects - Subsea - Projects Field Design Other/eliminations Projects Services Other/eliminations Aker Solutions 2019 Aker Solutions Order intake 1Q 2019 Revenue Book-to-bill Current lease liability 1,418 Lease Liability and Lease Asset NOK million Non-current lease liability Mar 31, 2019 Jan 1, 20191 563 546 5,203 5,183 2,439 0.6 Lease liabilities 2,064 3,512 0.6 5,766 5,729 1 Right-of-use asset for land and building 4,160 4,124 3,482 5,952 0.6 Right-of-use asset for machinery and vehicles 24 26 1,975 1,299 1.5 Lease receivables (non-current) 715 734 66 5 Lease receivables (current) 114 112 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. May 16, 2019 Slide 38 Aker Solutions#39Income Statement NOK million Income statement consolidated Revenue Operating expenses EBITDA Of which related to hedging Depreciation and amortization Impairment EBIT 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 5,173 (4,817) 5,425 (5,120) 5,419 6,444 22,461 5,483 6,254 (5,017) (5,986) (20,941) (5,057) (5,815) 6,541 (6,078) 6,954 (6,471) 25,232 (23,422) 7,256 (6,622) 355 305 401 458 1,519 425 439 463 483 1,810 634 (3) (4) (10) 6 (10) 3 4 3 1 11 2 (205) (201) (180) (205) (792) (185) (184) (179) (190) (739) (307) (0) (5) (4) (148) (156) (14) (0) (1) (6) (22) (2) 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 Non-controlling interests 38 (1) 223 23 110 10 15 25 (5) 221 103 115 136 158 511 148 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 2019 Aker Solutions May 16, 2019 Slide 39 Aker Solutions#40Balance Sheet NOK million Assets Property, plant and equipment Right-of-use assets Intangible assets 1Q 2017 3,721 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 3,564 3,341 3,316 3,077 2,977 2,905 3,044 2,945 4,184 6,280 6,525 6,344 6,447 6,343 6,290 6,204 6,349 6,472 Financial assets (non-current) Lease receivables (non-current) IB receivables (non-current) 184 148 124 158 162 153 91 117 196 - 715 41 18 18 39 27 31 35 46 47 IB receivables (current) Trade receivables Customer contract asset Accrued revenue and WIP Other current assets 470 298 279 128 131 103 62 47 144 2,961 2,968 2,533 2,876 2,819 2,838 3,258 3,236 4,150 2,810 3,146 3,479 3,559 3,931 2,849 2,635 3,015 3,148 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 Accrued operating and financial cost 2,254 2,447 2,581 2,237 700 4,256 685 4,554 416 709 831 4,632 4,539 4,936 Interest bearing current liabilities 1,677 1,484 Other non IB liabilities (current) 3,623 3,503 544 3,049 539 3,390 495 2,503 118 2,521 117 1,125 1,125 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 Net interest-bearing items 968 1,686 2,028 (844) 970 (1,422) (1,415) (1,024) (753) 248 Equity 6,684 6,761 6,614 7,047 475 6,848 247 405 347 5,878 Equity ratio (in %) 33.4 34.8 35.1 35.7 33.8 6,856 33.5 6,893 7,608 7,348 33.9 36.3 27.4 2019 Aker Solutions May 16, 2019 Slide 40 Aker Solutions#41Cashflow NOK million Cashflow EBITDA continuing operations Change in cashflow from operating activities Net cashflow from operating activities Acquisition of property, plant and equipment Payments for capitalized development Acquisition of subsidiaries, net of cash acquired Change in current interest-bearing receivables Sub-lease income received Cashflow from other investing activities Net cashflow from investing activities 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 355 305 401 458 1,519 425 439 463 483 1,810 634 (257) (762) (615) 702 (932) 107 (121) (506) (370) (890) (937) 98 (457) (214) 1,160 587 533 318 (44) 113 921 (303) ཆིཙྩེཝེ (31) (38) (42) (35) (4) (217) 179 Sསྦྱེ॰ ' (7) (135) (211) (31) (99) (107) (42) (31) (149) (29) (42) (43) (0) (221) (0) 85 264 40 40 $་ས (94) (331) (61) (174) (0) 62 0 3 22 (15) 10 85 39 50 (27) 147 ངྷ®ཙུ་སྨ@ (77) (35) (14) (60) (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 Paid dividends to majority (134) (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 Net increase (decrease) in cash and cash equivalents 13 8 (113) 146 54 (133) 4 (53) 153 (30) 17 (459) (809) 238 529 (502) 630 (167) (48) 81 495 (601) Cash and cash equivalents as at the beginning of the period Cash and cash equivalents as at the end 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 2,020 1,211 1,449 1,978 1,978 2,607 2,440 2,392 2,473 2,473 1,872 2019 Aker Solutions May 16, 2019 Slide 41 Aker Solutions#42Split Per Segment NOK million Revenue Projects Services 1Q 2017 2Q 2017 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 4,066 4,232 4,184 5,179 17,660 4,239 4,862 5,211 5,608 1,068 1,156 1,165 1,170 4,560 1,159 1,337 1,277 1,324 Other 41 43 75 105 264 89 58 72 78 19,920 5,096 298 5,952 1,299 42 Eliminations Revenue (2) (5) (6) (11) (24) (3) (19) (56) 5,173 5,425 5,419 6,444 22,461 5,483 6,254 6,541 6,954 (82) 25,232 (37) 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 Other 152 144 157 151 605 135 172 183 188 678 186 (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 EBIT (92) (79) (99) (196) (466) (41) (78) (114) (72) (305) (75) 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 EBIT margin 10.6% 8.5% 10.2% 8.4% 9.4% 8.1% 9.8% 11.1% 11.0% 10.0% 9.2% 2.9% 1.8% 4.0% 1.6% 2.5% 4.1% 4.1% 4.3% 4.1% 4.2% 4.5% 2019 Aker Solutions May 16, 2019 Slide 42 Aker Solutions#43Split Per Segment NOK million NCOA Projects Services 1Q 2017 (810) 2Q 2017 3Q 2017 4Q 2017 (239) 151 (712) 640 603 595 511 (1,067) 633 Other (803) (818) (731) (643) (521) (591) 1Q 2018 (1,350) 550 (622) 2Q 2018 (1,540) 646 3Q 2018 4Q 2018 1Q 2019 (262) 908 (1,141) 693 (306) NCOA (974) (454) 15 (844) (1,422) (1,415) (1,024) (753) (398) 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 Eliminations 10 67 67 238 381 20 34 77 92 223 70 (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 Services 8,146 7,328 6,569 9,743 10,483 9,802 10,507 25,014 10,294 22,547 10,917 Other Eliminations Order backlog (31) (4) (7) 4 30,709 30,695 (14) (0) 27,239 135 (103) 108 (140) 41 50 (148) (192) (0) (159) (6) (126) 34,581 37,553 36,981 36,081 35,148 33,332 2019 Aker Solutions May 16, 2019 Slide 43 Aker Solutions#44Split 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% 2019 Aker Solutions May 16, 2019 Slide 44 Aker Solutions#45Projects | Subsea and Field Design NOK million Revenue Subsea Field Design Eliminations/other Revenues 1Q 2017 2,182 2Q 2017 1,883 3Q 2017 1,801 4Q 2017 2,471 FY 2017 8,336 1Q 2018 1,956 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 2,084 2,079 2,042 8,162 2,439 1,887 2,353 2,386 2,776 9,402 2,284 2,810 3,170 3,551 (3) 4,066 (4) 4,232 (4) 4,184 (67) 5,179 (78) 17,660 (1) (32) (38) 4,239 4,862 5,211 15 5,608 11,814 (57) 19,920 3,512 1 5,952 Order intake 1Q 2017 Subsea 692 2Q 2017 929 3Q 2017 4Q 2017 FY 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 494 5,661 7,776 2,986 1,123 1,074 2,866 FY 2018 8,049 1Q 2019 1,418 Field Design Eliminations/other 3,408 1,654 1,335 4,001 10,398 3,487 3,867 2,715 1,566 11,635 2,064 Order intake (4) 4,096 (2) 1 8 3 2,582 1,830 9,669 18,177 (13) 6,460 (31) 17 4,959 3,806 (15) 4,417 (42) 19,642 3,482 Order backlog 1Q 2017 Subsea 8,814 Field Design Eliminations/other Order backlog 13,758 2Q 2017 7,727 15,642 3Q 2017 6,200 14,476 4Q 2017 9,532 1Q 2018 10,615 15,249 27 3 7 26 22,599 23,371 20,684 24,807 16,470 17 27,102 27,286 2Q 2018 9,746 17,521 3Q 2018 8,621 4Q 2018 9,837 1Q 2019 8,784 17,043 15,161 13,721 19 52 16 42 25,716 25,014 22,547 2019 Aker Solutions May 16, 2019 Slide 45 Aker Solutions#46Risk Factors Investing in bonds involves inherent risks Prospective investors should consider, among other things, the risk factors set out and referenced in this risk factors section before making an investment decision with respect to the bonds. An investment in bonds is suitable only for investors who understand the risk factors associated with this type of investment and who can afford a loss of all or part of the investment. If any of the risks described or referenced below materialise, individually or together with other circumstances, the business, financial position and operating results of Aker Solutions could be materially and adversely affected. Aker Solutions' global footprint, operations and exposure to energy markets provide both opportunities and risks that may affect the company's operations, performance, finances, reputation and share price. Overall company performance is affected by both external and internal factors. External factors include issues such as fluctuations in energy prices, customer behaviour and market developments, while internal factors may encompass matters such as project execution and service delivery. The inherent complexity of Aker Solutions internal operations and the costs across a broad-based value chain also impact upon results. Principal cost drivers include the cost of suppliers' direct and indirect material, sub-contractor costs and the company's own man-hours, and fluctuations in oil and gas prices. Through its business, Aker Solutions is exposed to legal, regulatory and political risks, such as tax changes, decisions on environmental regulation, and international sanctions that impact supply and demand, as well as risks associated with unethical and criminal behaviour. The company is also exposed to financial market risks, including changes in currency rates, interest rates, credit and counterparty risks, as well as risks associated with access to and terms of financing. Market Risk Compared to recent years, the market situation and current outlook for the oil- services industry is improving. Nevertheless, significant challenges remain. Some of the principal factors that contribute to market risk are outlined below: Local content requirements, legislative restrictions and/or prohibitions on oil and gas activities in countries of existing or planned operations. Liabilities under environmental laws or regulations. Uncertainty regarding future contract awards and their impact on future earnings and profitability. Changes in global demand, energy prices and environmental requirements impact upon oil company activities and the overall development of the market. These factors will influence Aker Solutions' exploration, development, production, investment, modification and maintenance activity. Developments within the market may lead to capacity adjustments and changes in the valuation of company assets and liabilities. The main uncertainties include delivering on the company's international growth ambitions, entry and 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 mitigating actions to increase flexibility in its operations, for instance by seeking to drive down costs, build a sustainable global workforce and enhance standardization and simplification. The company aims to be agile in its approach to the market, effectively adapting to industry demand and fluctuations to deliver optimal value and rewards across the value chain. A focus on continuous improvement in productivity and sustainability is central to these efforts. 2019 Aker Solutions May 16, 2019 Slide 46 Aker Solutions#47Risk 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 2019 Aker Solutions AkerFotion Akerlutions 35 35 36 36 36 36 AkerSo's Visit May 16, 2019 Slide 47 Aker Solutions#48Risk Factors (cont.) Financial risk The objective of financial risk management is to manage exposure from financial risks to increase predictability of earnings and minimize potential adverse effects on financial performance. Financial risk management and exposures are described in detail in the annual report for 2018. The main financial risks are: Currency risk: Aker Solutions has international operations and is exposed to currency risk on commercial transactions, assets and liabilities when payments and revenues are denominated in a currency other than the functional currency of the respective entity. The currency risks in all major contracts are hedged with external banks in the foreign exchange market. More than 80 percent of the hedging volume either qualifies for hedge accounting or is presented separately as hedges of embedded derivatives. Some jurisdictions may have currency restrictions and / or restrictions on repatriation of funds, in which case the company takes mitigating actions to minimize the currency exposure. These actions include non-deliverable forwards, multilateral or bilateral agreements with banks, customers and vendors regarding conversion of currencies, and timing of invoicing and payments. Liquidity risk: The corporate treasury department ensures financial flexibility by ensuring sufficient liquidity reserves and available committed credit lines. The company monitors rolling 12 weeks and 12 months cash forecasts of the company's future liquidity reserve, based on committed and expected cashflow in all business entities. ☐ Interest rate risk: The company's interest exposure mainly arises from external funding in bank and debt capital markets. Currently all external debt in Aker Solutions is at floating interest rates. The company's risk management strategy is that 30-50% of the interest exposure shall be fixed interest rate for the duration of the debt. The company uses interest rate swaps to achieve the desired fixed / floating ratio of the external debt. As the group has no significant interest-bearing operating assets, operating income and operating cashflow are substantially independent of changes in market interest rates. Credit risk: The credit risk related to customers' ability to pay is assessed in the bid phase and during execution of a project. The majority of the customers are highly rated oil companies where the credit risk is considered to be limited. Risk related to lower rated companies is monitored closely. Price risk: Aker Solutions is exposed to fluctuations in market prices which are mitigated in the bid process by locking in committed prices with vendors or through escalation clauses with customers. Aker Solutions has company-wide policies, procedures and tools that identify, evaluate and respond to risks actively and systematically. The assessment, definition, follow-up and implementation of adequate mitigating actions towards the main risk factors are all integral parts of the overall governance of the company. Aker Solutions applies a combination of risk management practices in order to effectively manage the risk to the company such as: internal controls, scenario planning, sensitivity analysis and audit management. 2019 Aker Solutions May 16, 2019 Slide 48 Aker Solutions#49Risk Factors (cont.) Ethical and Political Risks Aker Solutions could potentially become involved in unethical behavior, either directly or through third parties or partners. The company has operations in countries associated with high political, reputational and corruption risks. Key tools to reduce these risks are the company's code of conduct and anti-corruption compliance program, which are implemented at all locations globally. Risks are also managed through country analyses, mandatory awareness training, compliance reviews and integrity due diligence. Aker Solutions' anti-corruption program is subject to quarterly reporting to the Audit Committee. Aker Solutions has zero tolerance for corruption and works vigilantly to prevent such behavior. The company has control systems in place throughout the organization that are designed to identify and limit the effects of violations of the code of conduct. While the breaches were limited in scope, the company took swift action to address them. In general, employees face consequences spanning from a warning to dismissal for violating the code of conduct. Given its size and presence in different parts of the world, Aker Solutions experiences from time to time being investigated by various types of local authorities. At present Aker Solutions is aware of a few open matters, however none of them are deemed material. Risk Mitigation Aker Solutions has company-wide policies, procedures and tools that identify, evaluate and respond to risks actively and systematically. The assessment, definition, follow-up and implementation of adequate mitigating actions towards the main risk factors are all integral parts of the overall governance of the company. Aker Solutions applies a combination of risk management practices in order to effectively manage the risk to the company such as: internal controls, scenario planning, sensitivity analysis and audit management. Other risks ■ The risk factors set out above are non-exhaustive and Aker Solutions is subject to a number other risks of both a general and company specific nature. The annual report of Aker Solutions for 2018 provides more information on risks 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 the registration document and the securities note) issued in connection with the 2018 bond issue, as such risk factors continue to be relevant for Aker Solutions. The prospectus is available on www.oslobors.no (Ticker: AKSO03). 2019 Aker Solutions May 16, 2019 Slide 49 Aker Solutions#50Copyright 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. 2019 Aker Solutions May 16, 2019 Slide 50 Aker Solutions#51AkerSolutions