3rd Quarter 2004: Status and outlook - Aker ASA · 1 3rd Quarter 2004: Status and outlook Leif-Arne Langøy, President & CEO Bengt A Rem, CFO Oslo, 26 November 2004 Aker 3Q04 presentation

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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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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


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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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


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 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*



* Adjusted for shares owned by Aker

Externaldebt

Internaldebt

2.2 bn

0.9 bn


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

5


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 KværnerWorld-class product companies

Approx 1 700 dedicated employees in specialised companies

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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 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 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


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 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


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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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


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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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 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 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 Material HandlingStrong regional brands

Factory:HensmoenNorway

Factory:PanningenHolland

Factories:LaubachHalleGermany

38%

22%

40%

Relative shareof sales

Sales officesAustriaBelgiumCzech RepublicDenmarkFranceGermanyHollandHungaryItalyNorwayPolandSwedenSwitzerlandSlovakia

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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 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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Agenda



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 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 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 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 %


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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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 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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Agenda


ProfitableRecord order backlog

Sound financial platform

Aker MaterialHandling

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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

Documents

3rd Quarter 2004: Status and outlook - Aker ASA · 1 3rd Quarter 2004: Status and outlook Leif-Arne Langøy, President & CEO Bengt A Rem, CFO Oslo, 26 November 2004 Aker 3Q04 presentation