aftermarket2012 akersolutions terjevedeler

Public © 2012 Aker Solutions Preferred partner Slide 1

From reactive to proactive services Drilling lifecycle services (DLS)

We contribute to the best

drilling performance

in the market

Terje Vedeler


■ Provides oilfield products, systems and services for

customers in the oil and gas industry world-wide

■ Built on more than 170 years of industrial tradition

■ Employs approximately 25 000 people in more

than 30 countries

Aker Solutions at a glance

Maintenance,

modifications and

operations

Oilfield services

and marine assets

Umbilicals Process systems Engineering Subsea Drilling

technologies

Mooring and

loading systems

Well intervention

services

Employees 25 000

Revenues 36.5 bNOK

EBITDA 3.5 bNOK

Market Cap 26.3 bNOK


■ Provides drilling equipment and services for

customers in the oil and gas industry world-wide

■ Built on more than fifty years of drilling tradition

■ Employs approximately 3 000 people in more

than 11 countries

Drilling Technologies (DRT) a part of Aker Solutions

Employees: 3000

Revenues: 7 bNOK

EBITDA: 880 mNOK

Market share: 30%

Aker Solutions

Drilling technologies

Staff functions

Business

development

Drilling

solutions

Drilling lifesycle

services

Kristiansand

Products & DLS

Houston

Products & DLS Asker

Products & DLS

PU

Kristiansand

PU

Asker

PU

Houston

PU

Fornebu PU

Horten

PU

Erkelenz


Drilling lifecycle services (DLS) a part of Drilling technologies

Employees 847

Revenues 2.6 bNOK

EBITDA 487mNOK

■ We provide services for over 500 drilling rigs, 67 of these rigs have

complete drilling packages from Aker Solutions

■ We provide services within the following areas:

● Rig optimisation including training

● Qualified personnel for effective rig operation support

onshore and offshore

● Cost and time efficient overhaul and upgrade projects

● Efficient spare part distribution

■ Our goal is to maintain a long term relationship with our customers

by offering open and honest dialogue and to deliver high quality

services

Drilling lifecycle

services

Offshore support

Spare parts

Overhaul

Optimisation and training

Europe Asia Brazil US

Drilling lifecycle

services

Public © 2012 Aker Solutions Preferred partner

Service is important for the financial performance of DRT

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Drilling solutions

Riser

DLS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Drilling solutions

Riser

DLS

Slide 5

25% of revenue

50% of margin


DLS’ vision and objectives

Our vision Key objectives towards 2017

100% on time delivery

Meet our financial targets

100% customer satisfaction

100% retention of key personnel To deliver the best

rig performance in

the market


7

Rigs in operation

Location # of Rigs * Complete

packages**

Asia 96 6

Brazil 51 18

Europe 277 37

United States 68 6

Total 492 67

* Aker Solutions has delivered equipment

** Aker Solutions has delivered a complete drilling package


Where we are - our global footprint

Slide 8

Rio das Ostras, Brazil

Baku, Azerbaijan Houston, Texas

Mumbai, India Singapore, Singapore

Aberdeen, UK

Norway

412 team members

38 team members

56 team

members 87 team members

48 team members

60 team members

Mobile, Alabama

59 team members

Dubai, Emerates

2 team members

Erkelenz, Germany

50 team members

64 team members

© 2008 Aker Solutions part of Aker

Confidential

Slide 9

Organising service activities in DRT

US

Brazil

A&P

Europe

Offshore support

DLS PU Kr.sand

DLS PU Erklenz

DLS PU Asker

DLS PU Horten

DLS PU Fornebu

Production units Global DLS Regional HUBs

Product Process Service Execution

Overhaul

Spare parts

New Services

Training

Slide 9


847 people working in our service organization in 2012

Spares6 %

Service41 %

Overhaul12 %

Training6 %

Admin8 %

Other27 %

Slide 10

Public © 2012 Aker Solutions Preferred partner Slide 11 11

A growing market for DLS

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Historically strong growth

in our service business

We plan and invest for

further growth to be able to

support our customers


DLS market is growing globally

Slide 12

18

34

2012 2017

Brazil

6

16

2012 2017

US

6

26

2012 2017

Asia

37 41

2012 2017

Europe


2011 2012 2013 2014 2015 2016 2017

New services

Training

Maintenance

Service

Spares

We are planning for increased future business

to meet our target we

need to grow 600 mNOK

outside our traditional

DLS business

1,0X Improved quality

Slide 13


Key strategic direction for services

• 100% on time delivery

• Minimise through

improved product quality

• Regional availability

• Market adopted pricing

Spare parts Service Training Overhaul

• Reduced downtime

• Improved performance

• Lower ‘run in time’ for new

employees

• Global standard

• Based on new

innovative technology

• Giving DRT a strategic

imperative in the market

Slide 14

Reactive Proactive Value adding

New services

http://www.boschrexroth.com/ics/Vornavigation/VorNavi.cfm?Language=0&ContentView=Europa&UnitSystem=METRIC&Country=default&CFID=3162710&CFTOKEN=70473307&Scenario=&Region=none&History=(0-217*1189),(0-294*1184)&Stichwort=&ProductArea=Sonstiges


Customer satisfaction improvement program ongoing

SAM as single

point, having

bi-weekly

meetings with

customers

New CRM tool to

ensure

consistency and

transparency in

the customer

relations

We measure the

performance of

the SAM to

empower a high

performance

culture

Telephone

solution enabling

one fixed phone

number for our

customers

We are going to

standardise our

SAP setup,

and align this

with SLS

Slide 15


Historic organization structure

Production unit focused Truly international, customer oriented,

self contained, service based, with product

support from the PUs

Todays organization structure

Moved responsibility and capacity to the regional hubs

Slide 16

We will stabilise our European headcount at current level,

and recruit 500 people in our regional hubs the next five years


Service funnel, the way to improve our business

Customer

input

General

market input

DLS input

PU input

BD input

What shall we achieve

1. Improved performance or reduced cost for our customers

2. Attractive service setup that contributes to sales of new rigs

New services in Global DLS PUs or external DLS HUBs

myDrilling™

Performance optimisation

Riglogger™

Simulator training

Remote diagnostics

Exchange bank

Concept Definition Development Execution

Ongoing

projects Implemented

services

Slide 17


Additional 150 new floaters required globally before 2020

More than 20 000 new offshore rig

personnel required to operate this rigs

Extensive training program required to

qualify new people for the drilling industry

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Slide 18


Drilling simulator a low cost, low risk training alternative

Driller’s chair Controls

Simulator training

Rig training

500.000$

20.000$

Slide 19


Stavanger

Singapore

We have 12 drilling simulators in operation globally with our R&D centre in Stavanger

Simulator based services - 15% of revenue

Houston

Macae

Korea

Erklenz (equipment)

Baku

Kristiansand (full+equipment)

Slide 20


Replicated

rig data

Other

software

SAP

Historic

rig data

+

Collect rig date and transfer this to our web portal

myDrillingTM

Recording

rig data

Rig

promotion

Onshore

support

Management

Offshore

support

+

Customer

$

Free

Slide 21

part of Aker

Internal

Performance

optimisation

Performance

monitoring

Condition

monitoring

• Riglogger™ with a standard real time KPI viewer

• myDrilling™ collaboration portal

• Remote diagnostics, extended functionality

• 1:1 Drilling simulator for each rig

• System upgrades to lift technical limit

• Updating of operational procedure

• Crew alignment training in simulator

• Performance verification

• Asset integrity management support tools

• Full range of condition monitoring functionality

• Evaluating and trend status of system components

• Condition based maintenance recommendation

Description Average yearly price per rig

Implementing myDrilling™

Sales 2017

Slide 22

part of Aker

Internal

Slide 23

The value of myDrilling™ represent 10X the cost for our customers

Reduced

downtime

Reduced

maintenance

cost

Improved

efficiency

Reduced

admin cost

Total

customer

value

Total

customer

cost

10X

part of Aker

Internal

Slide 24

Thank you

for your attention

Questions?


Copyright 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.

Slide 25