"From reactive to proactive services" Terje Vedeler, Aker Solution presentation at Aftermarket Business Platform 2012

1. Public © 2012 Aker Solutions Slide 1 Preferred partner
From reactive to proactive services
Drilling lifecycle services (DLS)
We contribute to the best
drilling performance
in the market
Terje Vedeler

2. Public © 2012 Aker Solutions Slide 2 Preferred partner
■ 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
Engineering Drilling Subsea Umbilicals Process systems
technologies
Mooring and
loading systems
Well intervention
services
Employees 25 000
Revenues 36.5 bNOK
EBITDA 3.5 bNOK
Market Cap 26.3 bNOK

3. Public © 2012 Aker Solutions Slide 3 Preferred partner
■ 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

4. Public © 2012 Aker Solutions Slide 4 Preferred partner
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 US Brazil
Drilling lifecycle
services

5. 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

6. Public © 2012 Aker Solutions Slide 6 Preferred partner
DLS’ vision and objectives
Our vision Key objectives towards 2017
100% on time delivery
Meet our financial targets
100% customer satisfaction
To deliver the best 100% retention of key personnel
rig performance in
the market

7. Public © 2012 Aker Solutions Slide 7 Preferred partner
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

8. Public © 2012 Aker Solutions Slide 8 Preferred partner
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

9. © 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
Global DLS Regional HUBs Production units
Process Service Execution Product
Overhaul
Spare parts
New Services
Training

10. Public © 2012 Aker Solutions Slide 10 Preferred partner
847 people working in our service organization in 2012
Spares
6 %
Service
41 %
Overhaul
12 %
Training
6 %
Admin
8 %
Other
27 %
Slide 10

11. Public © 2012 Aker Solutions 11 Slide 11 Preferred partner
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

12. Public © 2012 Aker Solutions Preferred partner
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

13. Public © 2012 Aker Solutions Preferred partner
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

14. Public © 2012 Aker Solutions Preferred partner
Key strategic direction for services
• 100% on time delivery
• Minimise through
improved product quality
• Regional availability
• Market adopted pricing
Spare parts Service Overhaul Training
• 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

15. Public © 2012 Aker Solutions Preferred partner
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

16. Public © 2012 Aker Solutions Preferred partner
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

17. Public © 2012 Aker Solutions Preferred partner
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

18. Public © 2012 Aker Solutions Preferred partner
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

19. Public © 2012 Aker Solutions Preferred partner
Drilling simulator
a low cost, low risk training alternative
Driller’s chair Controls
Simulator training
Rig training
500.000$
20.000$
Slide 19

20. Public © 2012 Aker Solutions Preferred partner
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

21. Public © 2012 Aker Solutions Preferred partner
Replicated
rig data
Other
software
SAP
Historic
rig data
+
Collect rig date and transfer this to our web portal
myDrilling
TM
Recording
rig data
Rig
promotion
Onshore
support
Management
Offshore
support
+
Customer
$
Free
Slide 21

22. 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

23. 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

24. part of Aker
Internal
Slide 24
Thank you
for your attention
Questions?

25. Public © 2012 Aker Solutions Preferred partner
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uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations,
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that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will
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