Aker Soltns Asa Unsp/Adr

Good morning and welcome to AccuSolutions presentation of our third quarter results. My name is Preben Ørbeck and I'm the head of investor relations. With me today is our CEO, Paal Eikeseth and our CFO, Idar Eikrem. They will take you through the main developments of the quarter. After the presentation, we have time for questions. And those of you who are following the webcast can submit your questions via the online platform. And with that, I leave the floor to Paal Eikeseth.

Okay, thank you Preben, and welcome to everyone this morning. And first, a quick personal note. I have a stutter, so you might occasionally have some notice of stutter or pauses in my speech, but that's fine. Okay, moving on to today's presentation. Since I started in this role in September, I've spent time listening to our customers and our teams. And those conversations have reinforced two clear priorities for us. Deliver and transform. First, our priority is to deliver our products safely, on time, with the right quality and at the right cost. At the same time, we are transforming how we work and how we run our business. We run our projects now in a lean, agile setup. We are laser focused on standardization and simplification, and we are redesigning our processes to work with data rather than documents. Therefore, I'm confident that we have what it takes to reshape the company for the future, then to continue to create value for our people, our customers, and our shareholders. Okay, let's then turn into the quarterly results and the key message for today. First and foremost, I'm pleased to report that we continue to deliver solid financial results following the peak activity in 2025. The third quarter revenue was 13.5 billion with an EBITDA margin of 9.6% or 7.7% when excluding the net profit from SLB 1 SEBSE. During the third quarter, we achieved several important milestones in our project portfolio. This includes the successful sale of two top sites in the Akka BP portfolio and strong performance in a lifecycle business. We are also maturing opportunities across a range of markets such as small modular reactors. Lastly, In our updated guidance for 2026, we now expect revenues to be between 53 and 55 billion, with an EBITDA margin between 7.5 and 8%, excluding net profit from SLB 1 SEBSI. and at this early stage we expect the 2027 revenues to be between 35 and 40 billion with an EBITDA margin of between 7 and 8 percent excluding the net profit from SLB 1 Subsea. We are taking active steps to reduce our cost base, our land capacity while reshaping the business to improve our competitiveness and position ourselves for profitable growth. And then over to some operational highlights. Starting with the Aker BP portfolio. During the quarter, both the Hugen B and Valhalla PWP topsides left our yards. The last topside, Hugen A, is expected to sail away during the winter months. But then, our engagement on this project does not end that sale away. Several of our people will support the offshore commissioning phase preparing the startup in 2027. In Life Cycle, we are engaged in several subsea tieback projects. One example is the SKAV satellite project for Aker BP, where three subsea fields have been tied back to the SKAV FPSO. For this project, Aker Solutions has been responsible then for the topsoil modification, while SLB1 Subsea has delivered the subsea equipment. In August, Aker BP announced the first production from project, More than 10 months ahead of the original schedule. This is quite an achievement for the Alliance partners. Within offshore wind, we are in the final stages of the offshore commissioning of the first generation legacy lump sum projects. These projects continue to be both commercially and operational challenging, and commercial discussions are still ongoing. On a more positive note, we are progressing well on the two second generation HVDC converter platforms for the Norfolk product in the UK. Executed in a joint venture with Dry Docks World in Dubai. And as you saw in the video, our Verdal Yard is currently assembling several substructures for HVDC projects to European offshore wind developments. Moving on to the carbon capture and storage. We are progressing well on the capacity expansion of the Northern Light Storage Terminal and on the Hofstlen Celsius waste-to-energy project in Oslo. And during the quarter, we have also signed a collaboration agreement with Microsoft. The idea behind this collaboration agreement is simple. We combine Microsoft's capabilities with our engineering and product execution expertise to help customers mature projects then towards the final investment decision. And next, hydropower plays an important role in the energy mix. Since the acquisition of Rainpower, Akka Solution has managed to transform the entity into a profitable growth business. This is driven by excellent sales and by solid product execution across the portfolio projects in Norway and abroad. And lastly, as mentioned, we continue to develop our role within the small modular reactors together with Rolls-Royce SMR. Under the MoU, work is ongoing to validate the module design, supported by a dedicated team from Aaker Solutions. The ambition is to sign contracts for detailed engineering services during 2027. Looking further ahead, the construction activities are expected to start in time to support the ambition of the first energy by 2035. I would also like to highlight the solid performance in our lifecycle segment. Over the past year, we have successfully renewed all long-term framework agreements in Norway and in Canada. And in the third quarter, we also secured a strategically important framework agreement with BP for some of their UK assets. But then winning these contracts is only the first step. The ambition is to radically change how we execute projects. We do this through closer collaboration, standardization, and by adapting agile ways of working enabled by AI. And this is not about doing more. It's about working smarter to create value with our customers. This improvement mindset and culture are key for winning new projects. and this takes me to our tender pipeline which currently stands at around SEVENTY TWO BILLION KRONER adjusted than for the recent loss of the Visting FPSO project in Norway. The tender activity continues to be centered around our hubs in Europe and Asia-Australia. And in Europe we continue to see high tender activity for top-down modifications Subsea Tiebacks, as well as opportunities within offshore wind and carbon capture. Outside Europe, we are actively then positioning for several FBSO opportunities together with strategic partners. We are also tendering for the renewal of the long-term frame agreement with BSP in Brunei. Next, moving on to SLB1 Subsea, where Akko Solution holds a 20% stake. At the end of 2025, the company announced order index targets of more than $9 billion for 2026 and 2027. So far this year, SLB 1 Subsea has announced several important awards. Thank you, Paul.

First, let me start with the income statement. The third quarter revenue was 13.5 billion, in line with expectations following peak activity levels in 2025. The underlying EBITDA was 1.3 billion, with a margin of 9.6%. If we exclude the net profit from SLB 1 Sub-C, our underlying margin was 7.7%. The underlying EBIT was 891 million, with a margin of 6.6%. And the underlying net profit was 704 million, representing an earnings per share of 1.45 kr in the quarter. Moving to our segments. In the renewable and field development segment, third quarter revenue was 9.2 billion, with an underlying EBITDA margin of 8.4%. This was negatively affected by the mentioning legacy lump sum projects, offset by solid performance in the remaining project portfolio. The order intake was 3.7 billion, leading to a secured backlog of 27.1 billion at the end of the quarter. For 2026, we expect revenues to be between 36 and 38 billion in this segment. For the lifecycle segment, the third quarter revenue was 3.6 billion. The drop in volume mainly relates to lower activity in the electrification portfolio compared to the same period last year. The underlying EBITDA was 274 million with a margin of 7.6%. This was driven by strong operational performance across frame agreements and modification projects. Order intake was 1.2 billion, or 0.3 times book to bill. The backlog continues to be robust at 40 billion, providing good visibility on activity levels for several years ahead. If you also include the estimated value of the option periods, the backlog will increase to around 80 billion. Based on the secured backlog and market activity, we expect revenues in life cycle to be between 14 and 15 billion for the full year of 2026. Moving over to the financial performance of SLB 1 Subsea. Here shown us 100% basis in US dollars based on US GAAP. In the third quarter, SLB 1 Subsea reported revenues of $1.1 billion, an increase of about 12% compared to the same period last year. EBITDA in the quarter was approximately 197 million with a margin of 18.5%. This is almost 150 basis points above the margins for the first half of 2026, reflecting stronger performance across the business lines. Net profit for the entity increased to $152 million before PP&A adjustments. This was positively impacted by a one-off tax provision release of around $20 million in the quarter. During the quarter, SLB 1 Sub-C recognized an order intake of around $1.2 billion and the backlog grew to $5.3 billion. Lastly, the company reported strong cash generation in the quarter with a net cash increasing to $482 million. And based on its robust financial position, we continue to expect full-year dividend distribution in 2026 to be in line with 2025 levels. Next, I will go through the key cash flow items in the quarter. Operational cash flow was 1.6 billion. This includes an improvement in working capital of around 700 million in the period. CapEx was 67 million or 0.5% of revenues. The quarterly dividend received from our 20% stake in SLB 1 Sub-C was 137 million in line with previous quarters. Lastly, our financial position remains highly robust with a net cash of 5.8 billion, including investments in liquid funds. I will now hand the presentation back to Paul to summarize the key developments of the quarter and present our updated guidance.