Aker Solutions Earnings and Corporate Presentation
General
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
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