3rd quarter 2004: status and outlook - aker asa · 1 3rd quarter 2004: status and outlook leif-arne...
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3rd Quarter 2004:Status and outlookLeif-Arne Langøy, President & CEOBengt A Rem, CFOOslo, 26 November 2004
Aker 3Q04 presentation | 2 Aker ASA26.11.2004
Agenda
• Group update Leif-Arne Langøy• Details 3Q04 performance Bengt A. Rem• Concluding remarks Leif-Arne Langøy• Q&A session
The figures in this presentation are pro forma and picture Aker ASA as ifthe restructuring was completed on 1 January 2004. All numbers are in NOK million unless stated otherwise.
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Aker 3Q04 presentation | 3 Aker ASA26.11.2004
1850 20001900 1950
Aker historyThree centuries of
Davy/John Brown/Trafalgar
Norcem (offshore, cement)
Masa-YardsKværner
RGI
Est1841 Peter Steenstrup
First CEOKjell I RøkkeMain owner
Oluf A Onsum, founder
Aker Kværner
Aker Yards
Aker Seafoods
Aker Matr Handl
Aker 3Q04 presentation | 4 Aker ASA26.11.2004
AkerKværner
Illustration
AkerSeafoods
AkerYards
Aker MaterialHandling
Group structure
58% 100% 100%75%
Ownership
Other
No plan to reduce ownership in main business units
Parent and holding companies
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Aker 3Q04 presentation | 5 Aker ASA26.11.2004
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 Aker ASA– Short-term debt repaid and refinanced
Aker 3Q04 presentation | 6 Aker ASA26.11.2004
EBITDA(NOK bn)
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
YTD2003
YTD2004
Key indicators
Revenues(NOK bn)
0
10
20
30
40
50
60
YTD2003
YTD2004
Backlog(NOK bn)
0
10
20
30
40
50
60
end2003
YTD2004
Other
Aker MaterialHandlingAkerSeafoodsAkerYardsAkerKværner
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Aker 3Q04 presentation | 7 Aker ASA26.11.2004
Aker ASA and holding companies
Strong financial structure
Market valuelisted shares(25 Nov 2004)
Book valuelisted andunlisted
investments
AkerKværner
Aker Yards
Kværner7.2 bn
8.3 bn
Grossdebt
Cash andIB assets
Net IBliabilities
3.1 bn
1.9bn 1.2 bn
= NOK 108per Aker share*
= NOK 94per Aker share*
= NOK 15per Aker share*
* Adjusted for shares owned by Aker
Externaldebt
Internaldebt
2.2 bn
0.9 bn
Aker 3Q04 presentation | 8 Aker ASA26.11.2004
3Q HighlightsAker Kværner
• Profits continue to climb, targets confirmed
• Record order backlog, generally strongmarkets
Key figures 3Q 3Q YTD YTD(in NOK million) 2003 2004 2003 2004Revenues 7 459 8 921 22 261 25 493EBITDA 257 364 660 1 023Order intake 7 212 12 637 27 269 30 261Order backlog 30 798* 35 562*Employees 23 034* 22 339*
Good progressin projects
* At end of period
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Aker 3Q04 presentation | 9 Aker ASA26.11.2004
Aker KværnerStrong order intake
Order intake(NOK mill)
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
3Q03
4Q03
1Q04
2Q04
3Q04
Ormen Lange MIC Frigg decom(booked in 4Q)
Kashagan topsides
Aker 3Q04 presentation | 10 Aker ASA26.11.2004
Aker KværnerWorld-class product companies
Approx 1 700 dedicated employees in specialised companies
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Aker 3Q04 presentation | 11 Aker ASA26.11.2004
3Q HighlightsAker Yards
• Margins still satisfactory, activity reduced
• Strong order intake• 2004 targets revised up
Key figures 3Q 3Q YTD YTD(in NOK million) 2003 2004 2003 2004Revenues 4 005 2 702 12 352 8 664EBITDA 458 176 1 325 620Order intake 8 631 6 684 9 704 10 905Order backlog 17 016* 20 342*Employees 14 613* 13 371*
Good progressin projects
* At end of period
Aker 3Q04 presentation | 12 Aker ASA26.11.2004
Aker YardsStrong order intake
Order intake(NOK mill)
01 0002 0003 0004 0005 0006 0007 0008 0009 000
10 000
3Q03
4Q03
1Q04
2Q04
3Q04
Icebreaking PSVs
Icebreaking CV PSVs
Ultra-Voyager
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Aker 3Q04 presentation | 13 Aker ASA26.11.2004
Aker YardsTimely change initiatives
The new Aker Finnyards The new Aker Brattvaag
• 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
• One company, 3 yards• New name Aker Finnyards Oy• Work groups identify potential
synergies, needed actions and org changes
Aker 3Q04 presentation | 14 Aker ASA26.11.2004
3Q HighlightsAker Seafoods
• Strong sales, margins under pressure in Europe
• Limited harvesting• Surimi market improves
Key figures 3Q 3Q YTD YTD(in NOK million) 2003 2004 2003 2004Operating revenues 337 484 1 126 1 479EBITDA 10 25 69 107Employees 1 274* 1 250*
* At end of period
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Aker 3Q04 presentation | 15 Aker ASA26.11.2004
Aker SeafoodsGroup overview
JFK Seafood
ASC Far East
ASC SouthAmerica
1 factory trawler
2 factory trawlers
2 factory trawlers3 long-liners
Harvesting
Processing
Distribution
18 licences12 trawlers
8 process plants
Pan-Europeannetwork
81 %
19 %Aker Seafoods Corp
NorwaySeafoods
Revenues split
Aker 3Q04 presentation | 16 Aker ASA26.11.2004
Norway SeafoodsValue chain
Catch
30 000 MT
Havfisk
Lofoten Trålerrederi
Hammerfest Industrifiske
Onshore processing
= 65 000 MT
ProductionNorway
30 000 MT
ProductionDenmark
20 000 MT
Round fishto market
15 000 MT
Market
Frozenproducts
Freshproducts
Otherconsumerproducts
+ 35 000 MT
Own facilitiesin Norway
and Denmark
21 000 MT
External14 000 MT
Purchased
55%
40%
5%
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Aker 3Q04 presentation | 17 Aker ASA26.11.2004
Norway Seafoods in blue-green allianceFresh fish on the dinner plate
Strategic alliances
Harvesting and landing
Sale & MarketingDistribution in
pan-European network
364 days a year
Onshore processing
Aker 3Q04 presentation | 18 Aker ASA26.11.2004
Norway’s fisheriesInefficient catch pattern
0
10 000
20 000
30 000
40 000
50 000
60 000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Tonn
es c
atch
Fleet idle 6 months/year
People laid off
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Aker 3Q04 presentation | 19 Aker ASA26.11.2004
3Q HighlightsAker Material Handling
• Consolidation turn losses intoprofit in 3Q04
• Increased order intake YTD• Steel prices up, margins
maintained
Pro forma 3Q 3Q YTD YTDcontinuing business 2003 2004 2003 2004Revenues 244 311 853 896EBITDA -11 4 -40 -7Order intake 246 237 825 930Order backlog 216* 270*Employees 718*
* At end of period
Aker 3Q04 presentation | 20 Aker ASA26.11.2004
Aker Material HandlingConsolidation 2001-2004
050
100150200250300350400450
Sales2000
MatrHandl
UK & Fra Asia-Pacific
Redirack CommsUS
ConstrFinland
Contbusn2000
2004revenues
EURO million
Divestitures2001-2004
2001 2003 20032003/2004 2003 2004
Fixed budget rates
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Aker 3Q04 presentation | 21 Aker ASA26.11.2004
Aker Material HandlingClimbing towards sustainable profits
-9
-8
-7
-6
-5
-4
-3
-2
-1
0
1
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
EURO million
EBITDA12-mnth revolving
20042003
Aker 3Q04 presentation | 22 Aker ASA26.11.2004
Aker Material HandlingStrong regional brands
Factory:HensmoenNorway
Factory:PanningenHolland
Factories:LaubachHalleGermany
38%
22%
40%
Relative shareof sales
Sales officesAustriaBelgiumCzech RepublicDenmarkFranceGermanyHollandHungaryItalyNorwayPolandSwedenSwitzerlandSlovakia
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Aker 3Q04 presentation | 23 Aker ASA26.11.2004
Aker Material HandlingMarket 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 | 24 Aker ASA26.11.2004
Aker Material HandlingImportant VW award
Volkswagen Baunatal, Germany • VW to build two newwarehouses at Baunatalfacility
• Ordered Dexion HI280 shelving system– 13 000 shelves
80 x 46 metres– 5 000 shelves
37 x 23 metres• Production at Hensmoen,
Norway and Laubach, GermanyWith a contract value of EUR 2.3 million,
the VW order is one of the biggest single orders for shelving systems in Germany
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Aker 3Q04 presentation | 25 Aker ASA26.11.2004
Agenda
• Group update Leif-Arne Langøy• Details 3Q04 performance Bengt A. Rem• Concluding remarks Leif-Arne Langøy• Q&A session
Aker 3Q04 presentation | 26 Aker ASA26.11.2004
Aker group consolidatedEBITDA by main business
3Q 3Q YTD YTD Year(in NOK million) 2003 2004 2003 2004 2003Op revenues 12 397 12 554 37 803 37 302 51 458EBITDA 756 562 1 995 1 784 2 607Aker Kværner 257 364 660 1 023 1 003Aker Yards 458 176 1 325 620 1 610Aker Seafoods 10 25 69 107 74Aker Material Handling * -11 4 -40 -7 -34Other, eliminations * 42 -7 -19 41 -46
* Aker Material Handling numbers are pro forma for continuing business. Thisadjustment also affects eliminations
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Aker 3Q04 presentation | 27 Aker ASA26.11.2004
Aker group consolidatedIncome statement
3Q 3Q YTD YTD Year(in NOK million) 2003 2004 2003 2004 2003Op revenues 12 397 12 554 37 803 37 302 51 458EBITDA 756 562 1 995 1 784 2 607Depreciation -207 -203 -625 -595 -842Amortisation -92 -130 -349 -408 -547Special operating items -133 -6 -38 -127 -484Operating profit (EBIT) 324 223 983 654 734Associated companies -8 -6 -12 -13 -14Net financial items -116 -188 -975 -551 -1 131Special financial items - - - - 122Profit before tax 200 29 -4 90 -289Tax -135 -86 -104 -217 19Net profit 65 -57 -108 -127 -270
Aker 3Q04 presentation | 28 Aker ASA26.11.2004
Aker group consolidatedBalance sheet
30.09 31.12 30.09(in NOK million) 2003 2003 2004Tangible and non-tangible fixed assets 15 594 14 772 14 806 Other fixed assets 1 550 1 212 880Cash and interest bearing receivables 9 330 8 279 6 829Other current assets 18 106 16 979 17 957Total assets 44 580 41 242 40 472Shareholders’ equity 7 482 6 681 6 279Minority interests 3 015 2 561 2 753Subordinated liabilities 4 023 3 946 4 068Interest-bearing debt 13 976 11 711 10 889Interest-free debt 16 084 16 343 16 483 Equity and liabilities 44 580 41 242 40 472Net interest bearing debt 4 055 2 890 3 737Equity ratio 23.5 22.4 22.3
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Aker 3Q04 presentation | 29 Aker ASA26.11.2004
Aker ASA and holding companiesBalance sheet
30.06 30.09(in NOK million) 2004 2004Tangible and non-tangible fixed assets 1 456 1 496Long-term interest bearing items 714 836Long-term financial assets 9 044 8 349Other current assets 387 362Cash and interest bearing receivables 1 361 1 154Total assets 12 962 12 197Shareholders’ equity 8 940 8 277Non-interest bearing liabilities 826 774Interest bearing liabilities 3 196 3 146Equity and liabilities 12 962 12 197Net interest bearing debt 1 121 1 156Equity ratio 69 % 68 %
Aker 3Q04 presentation | 30 Aker ASA26.11.2004
3Q 3Q YTD YTD Year(in NOK million) 2003 2004 2003 2004 2003Op revenues 337 484 1 126 1 479 1 523EBITDA 10 25 69 107 74Profit before tax -8 -39 4 -65 -43
Aker SeafoodsKey financials
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
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Aker 3Q04 presentation | 31 Aker ASA26.11.2004
Actual numbers 3Q 3Q YTD YTD Year(in NOK million) 2003 2004 2003 2004 2003Operating revenues 425 308 1 519 967 1 981EBITDA 0 4 -14 -4 3Profit before tax -219 -68 -230 -262 -357Order intake 1 060 1 953Order backlog 270* 237*
Aker Material HandlingKey financials
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 ofSeptember, further reduced since to approx NOK 150 million
* At end of period
Aker 3Q04 presentation | 32 Aker ASA26.11.2004
Aker ASA and other activitiesKey financials
3Q 3Q YTD YTD Year(in NOK million) 2003 2004 2003 2004 2003Operating revenues 171 139 545 699 762EBITDA 31 -6 -45 38 -83Profit after tax -28 -56 -574 -156 -697
Comments year to date• Includes parent companies
costs NOK 72 million• Legend assets sold in 3Q
This segment includes• Atlas Stord• Legend Properties• Wyndmore• Aker ASA and other companies in
holding company structure• NorSea Group (33,5%)• Geco Triton
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Aker 3Q04 presentation | 33 Aker ASA26.11.2004
Agenda
• Group update Leif-Arne Langøy• Details 3Q04 performance Bengt A. Rem• Concluding remarks Leif-Arne Langøy• Q&A session
ProfitableRecord order backlog
Sound financial platform
Aker MaterialHandling
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Aker 3Q04 presentation | 35 Aker ASA26.11.2004
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.
Disclaimer