SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 2 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 3

XTREME X-FACTOR

Aker’s aim is to make a difference. The key question is whether our active ownership generates added value for shareholders over and above what passive management would achieve. This X-factor was extreme in 2016. Since listing on the Stock Exchange in 2004, Aker’s return to shareholders has been more than double that of the main benchmark index (OSEBX).

“Buy when everyone else is selling and The proposed dividend equates to 3.5 hold until everyone else is buying. That's per cent of NAV. Aker’s dividend policy not just a catchy slogan. It's the very remains to distribute 2 to 4 per cent of essence of successful investing.” NAV to shareholders annually.

Like last year, I have again borrowed a Cash flow from the portfolio companies quote from Jean Paul Getty (1892–1976), to Aker is increasing, and facilitating not the founder of Getty Oil, whose oil earn- only dividend payments but also new ings made him one of the world’s first investment in current and potential fu- dollar billionaires. While the quote may ture industrial segments. sound like a cliché, it remains highly rel- evant in practice. These three sentences Including share price growth and divi- define action, purpose and direction. To dends, the shareholders achieved a re- my mind, the quote summarises Aker’s turn of 106 per cent in 2016. In compari- development since I took control of the son, the OSEBX index rose by 12 per cent. company in 1996. The Aker share price has risen from NOK Aker’s well-oiled machinery moved 61 on the first day of listing in Septem- quickly in 2016. We have done as we said ber 2004 to NOK 323 at year-end 2016. we would – invested counter-cyclically The Aker share has generated NOK 137 at a time of volatile oil prices. Our long- in dividends, and a further NOK 16 per term perspective and proactive ap- share will be distributed on 3 May. The proach have borne fruit. share has more than quintupled in val- ue, and generated 2.5 times its initial Aker’s net asset value (NAV) grew by value in dividends. The shareholders 69 per cent in 2016, including paid divi- have received an overall return of 7.5 dends, to NOK 34.3 billion by year-end, times their initial stake in just 12 years. corresponding to an increase from NOK 282 to NOK 462 per share. A dividend This has given the shareholders an av- of NOK 10 per share was paid during erage annual return of 27.1 per cent, the year, and a further NOK 16 per share measured in terms of price rises and dividend is proposed for the financial dividends, while NAV has grown by an year 2016. This 60 per cent dividend in- average of 21.0 per cent per year. In con- crease reflects Aker’s financial strength. trast, the OSEBX index has generated 4 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 5

an annual dividend-adjusted return of erations and licences on the Norwegian Øyvind sees how to get there effectively continued growth in shareholder value shelf. We firmly believe that Aker BP will pected. An overrun of approximately 10.2 per cent. continental shelf with the acquisitions of and safely. in the oil and gas sector. become best in class from an operation- 40 per cent brought the total cost up to Svenska , Premier Oil Norge, al, profitability and safety perspective. the historical level seen in other Asian The X-factor is the added value Aker Noreco, Centrica and Tullow Norge. Aker’s active leadership and ownership, As impressive as the value created in yards. In the end, as feared, the top deck generates compared to the OSEBX networks and cooperation with well- 2016, is the control Aker BP CEO Kalle Aker BP was last year’s Father cost NOK 2 billion more than initially benchmark. Aker outperformed OSEBX The creation of Aker BP is a milestone run companies together comprise an Hersvik and his new management Christmas in the Aker portfolio, bring- proposed in the tender. phenomenally in terms of both NAV in Aker’s history. The new company X-factor that adds something extra. The group have exercised over the three de- ing sizable gifts for shareholders. On and current shareholder returns in combines the attitudes, expertise and outcome is not necessarily obvious to terminants of the company’s cash flow: Christmas Eve itself, production start- Overall, however, the Ivar Aasen pro- 2016. This “Xtreme X-factor” is the re- experience of BP and Det norske with everyone at first, but “suddenly” things operational costs (OPEX), investments ed in the Ivar Aasen field, on time and ject has been executed successfully. sult of effective, targeted efforts over Aker’s entrepreneurial spirit. Aker BP fall into place and considerable value is (CAPEX) and well-stream optimisation, on budget and, most importantly, with- Success has many parents, but failure many years. would never have been born without added. i.e. production. They have laid a robust out serious incident or accident during is an orphan. Ivar Aasen certainly has Aker’s network, background, experi- foundation for minimum annual divi- the project period. a number of parents who deserve rec- As you know, Aker has been making ence and knowledge of the oil service Value creation is not a linear function. dend payments of USD 250 million per ognition and praise. To everyone on the oil-related investments for many years. supplier industry. Often, you have to be an insider to see year until 2020, and dividend capacity The execution of the Ivar Aasen project team led by Bård Atle Hovd: you have I have dreamt of building a significant all the building blocks and understand is expected to increase further once the has impressed me. In recent months, done fantastic work. exploration and production player on The partnership between Aker and BP how they should be placed to create a Johan Sverdrup field begins production. I have been reminded of what I wrote the Norwegian continental shelf for the in Aker BP would also have been impos- new and better whole. The foundation Aker’s 40 per cent ownership interests in my letter to shareholders four years I would also like to thank Sverre Skogen, past 20 years. In 1999, the tiny oil com- sible to establish without the Marathon needs to be laid before making large val- will generate at least USD 100 million ago: who joined the company as working pany Aker Energy pre-qualified for the acquisition. ue-generating leaps. Our preparations, in annual dividends, equivalent to more board chairman in 2013 and dealt with Norwegian shelf, but its coffers were rigorous work ethic and attitudes lay than NOK 11 per Aker share at present. I am sure that the development of Ivar suppliers and the yard knowledgeably empty by 2002. Four years later, we In just a few years, we have made the the foundation for our value-creation. Aasen will be more expensive than and effectively. Kalle Hersvik took over made a new attempt with the explora- leap from the lower leagues to the Large-scale assets do not materialise Production grew to 43 million barrels of budgeted, and that production of the as CEO in 2014, and has proven to be a tion company Aker Exploration, which Champions League of oil companies, suddenly from nothing. oil equivalents in 2016 – an average of first oil will occur later than planned. Re- tenacious and inspiring leader. So too merged with Det norske oljeselskap in competing with other significant in- 118 200 barrels per day – more than dou- ally, I should not say anything, but I will. has project director Olav Henriksen, 2009. The decisive leap forward was dependent European exploration and Aker BP boosted Aker’s NAV by NOK ble the figure for 2015. At year-end, Aker with his extensive experience of execut- Det norske’s acquisition of production companies. The meeting 12.9 billion in 2016. The increase in val- BP had reserves of 711 million barrels of My assertion is based on long industry ing complex and challenging projects in June 2014, shortly before the slump Øyvind and I had with BP’s Chief Exec- ue equates to NOK 174 per Aker share. oil equivalents, and an additional 600 experience, particularly of the Norwe- on the Norwegian continental shelf. in oil prices began. It would have been utive Bob Dudley and Upstream Chief In contrast, Aker’s share price was NOK million barrels of contingent resources gian continental shelf. I rarely hope to be impossible to acquire Marathon’s pro- Executive Bernard Looney in Lon- 164 at the beginning of 2016. that can be matured into reserves in the wrong, but this is one of those instances. In my experience, a good decision rarely duction, licences and operations on the don in early June 2016 was one of the coming years. Its current portfolio gives produces a good result if implemented Norwegian continental shelf without most motivating I have ever attended. The Aker BP share price appreciated by Aker BP a potential production level Things developed as I hoped, not as I by people performing below par. How- Aker’s drive and committed ownership. Two cultures in two different financial 180 per cent in 2016, and the company of 270 000 barrels per day from 2023, feared, but there are still some impor- ever, a poor decision can still produce leagues, but with a common aim: to also paid its first dividend in the fourth more than double the level planned for tant nuances to point out. an excellent result if implemented by As oil prices fell, self-appointed experts create something new and different on quarter. This occurred four years earli- 2017. Production and operating costs skilled people. The latter is the case opined that this was a textbook case of the Norwegian continental shelf. Øyvind er than planned by Aker in the summer are expected to fall gradually, from their My statement in 2013 reflected Aker’s with the Ivar Aasen project. Bård Atle a bad acquisition. In my letter to share- and I are grateful for the opportunity of 2014, when the Marathon acquisi- current level around USD 11 per barrel to own experiences over time, as well as Hovd is a tough individual. I gave him a holders for 2014, however, I stated that and trust we have been given by BP’s tion fired the starting gun for the de- USD 8 per barrel. In other words, any- the history of field developments after lot of grief the beginning of the project, the transaction had created shareholder board and Bob Dudley and Bernard velopment of a significant player on thing over USD 11 per barrel will make 2010. At that time, foreign yards were but he has delivered impressive results. value of NOK 5 billion. I wrote: Looney in particular. the Norwegian continental shelf. Aker a positive EBITDA contribution in 2017. delivering more than two years behind I take my hat off to him and his team. BP’s development is highly satisfactory. I will not be satisfied until average pro- schedule, on average, and cost overruns In important areas the Marathon Oil ac- I am proud of Aker BP. The company is From experience, I know that upturns duction and operating costs are well be- were averaging almost 40 per cent. The yard in Singapore demonstrated quisition has proven significantly more the product of strong leadership, ex- also have a downside in cyclical indus- low USD 8 per barrel. This is necessary willingness and ability to deliver on beneficial than assumed prior to the pert staff and active ownership on two tries. While I do not expect the share to ensure that we have the robustness Before the top deck contract for Ivar time and with the right level of quality. transaction. Alvheim’s production pro- levels – in the investment vehicle Aker price to rise forever, I am pleased with required to operate in the volatile oil Aasen was awarded, Aker strongly ad- Challenging commercial issues were set file is better than anticipated. There is and in what has become Aker BP. More- what we have achieved thus far in in- and gas industry. We have managed this vised the operator, Det norske (now aside to maintain progress. SMOE’s pro- more oil in the ground than forecast, over, through its ownership interests in dustrial and financial terms. before. Following the acquisition of the Aker BP), to follow Lundin’s example ject manager, Mr Prathaban, made a he- and several additional fields with po- , Akastor and Kværner, Marathon portfolio, the com- from the Edvard Grieg field by selecting roic effort alongside Aker BP’s key rep- tential for tie-in to the production and Aker has developed a wide network of Aker BP’s most important value-creation pany cut these costs from USD 9 to ap- a known development concept and a resentatives at the yard, Snorre Fossum storage ship Alvheim have been identi- contacts and professional relationships parameter is how much free cash flow proximately USD 6 per barrel. supplier with experience of comparable and Sturla Vada. Yard CEO Neesin Hoo fied. Marathon Oil Norway is a perfect with the world’s leading oil companies. it can generate. This determines how projects on the Norwegian continental deferred his retirement until the top match in terms of its reservoir portfolio, No-one is better at building confidence much can be invested in new acquisi- The overall break-even cost for Johan shelf, specifically to secure the solution deck had been delivered. I could men- production profile, tax position, and hu- and trust than my good business partner tions and distributed as dividends. Oil Sverdrup and investment forecasts for entailing the lowest risk of overruns and tion many others, but will stop here. To man resources. The other, opposing fact Øyvind, President and CEO of Aker and price movements are beyond our con- new potential field developments are delays. However, the contract was still those I have not mentioned: thank you. is that oil prices are far lower than antic- Chairman of Aker BP and Aker Solutions. trol, and effective planning for such falling sharply. Moreover, Aker BP will awarded to SMOE in Singapore. You are not forgotten. ipated and planned for. volatility is an essential part of our continue to pursue an aggressive and Øyvind continues to do an impressive business. We do not lose sleep when oil targeted exploration programme. The total budget of NOK 27.4 billion was All in all, this project was executed in a This upside has been emphatically and outstanding job. We are better as prices fluctuate, or over short-term de- kept thanks to an unofficial world record robust manner thanks to quick, unbu- demonstrated in 2015 and 2016. Aker has a team than individually. Where I see a viations from our long-term forecasts. Let there be no doubt: we have great in cost-effective drilling. The cost of the reaucratic decision-making and, most pushed on with further purchases of op- solution, an objective or an opportunity, Our focus is on the opportunities for confidence in the Norwegian continental top deck, however, was higher than ex- importantly, with an excellent HSE re- 6 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 7

cord. However, the bill for the top deck most suppliers have not achieved suffi- Ocean Yield has been a reliable contrib- Financial investments accounted for 18 money was immediately reinvested in as safely as possible and with the small- was too large. This is why I remain of cient profitability. utor to Aker’s development since listing per cent of Aker’s total assets at year- Aker BP, whose share price has doubled. est possible environmental impact. The the view that the board committee and in July 2013. The ship-owning company end. The portfolio was valued at NOK world needs more energy from new Aker gave the right advice. Kværner During previous upturns, costs have is a dividend and growth machine for 8 billion, including NOK 4.5 billion in Exiting the fisheries sector was sad in sources, but Aker BP will not be invest- would have managed to deliver at a rocketed. I fear that this pattern will Aker and our co-shareholders, gener- cash and NOK 0.4 billion in liquid fund one respect, although the new solution ing in renewable energy. lower cost and on time if the yard at repeat itself. A new upswing can be ex- ating an average annual shareholder investments. also felt both good and right. Stord had been given the opportunity. pected in two or three years’ time, and return of 41 per cent in the form of share is well-run. Lerøy – the world’s sec- Green shift is a populist term with many it is likely that suppliers will then lack price growth and dividends. As regards the remaining NOK 3.1 bil- ond-largest Atlantic salmon producer connotations. Many people perceive The oil industry is best suited to patient, necessary capacity and expertise. In lion, the most important assets are – has the sales and marketing channels it to represent “new oil”. The Norwe- long-term investors with financial mus- my experience, that means rising costs, Ocean Yield – Aker’s second-largest American Shipping Company, Philly and resources needed to build a suc- gian oil industry has been built up by cle and industrial ambitions. Seed takes even though at present most players are investment, with a market value of NOK Shipyard, the real estate development cessful fjord-to-table supply chain. The Norway’s leading knowledge and tech- a long time to produce a harvest. It took talking about the opposite scenario. To 6.4 billion – navigated some rough wa- company Fornebuporten and a receiv- opportunity to establish an internation- nological institutions, and thanks to its 17 years for Aker’s initial investment to avoid the historical scourge of the oil ters in 2016. Aker is focused on gener- able from Ocean Harvest. The aim is to al seafood conglomerate specialising in hydropower developments of the 1900s, generate its first dividends. Now, Aker and gas industry, oil companies and sup- ating an increasing annual dividend, maximise profitability and cash flow and red and white fish is one which the Nor- Norway has one of the world’s highest BP is a model operator on the Norwegian pliers have to stop treating one another and in the past year this investment realise their potential. Some of these in- wegian fish industry and all of Norway proportions of clean energy production continental shelf in terms of investment, with suspicion, and instead develop produced a direct return of 8.5 per vestments will perform better than ex- Seafoods’ local employees deserve. and consumption. I welcome renewable exploration, operation and profitability. greater harmony through trust-building cent (NOK 5.80 in dividends per share pected, others worse. None of them are energy, but also expect oil and gas to re- forms of collaboration. and a share price of NOK 68.50 at the game-changers for Aker, whether in a I am grateful for my experiences in the main a key element in the world’s ener- Kværner achieved the second-highest beginning of the year). The share price positive or negative sense. Norwegian white fish industry over the gy mix for decades to come. This offers price performance of all the portfolio The challenging market conditions ex- dropped somewhat over the course of past 20+ years, and would particularly substantial scope for players like Aker, companies in 2016: up 47 per cent. perienced in the last couple of years, 2016, and the total return including div- The final component in the financial like to thank all the fishermen and wom- Aker BP and our supplier companies. Overall, Aker’s oil service companies which continue to shape 2017, demand idends amounted to 3 per cent. This is portfolio is the supplier shipping com- en, employees and supporters who have boosted NAV by NOK 1.8 billion, albeit action. Transparent dialogue and con- much lower than Aker’s annual return pany Solstad Farstad, in which Aker has assisted along the way. At times, we Aker and Aker BP are compliant with from a shamefully low initial level. structive cooperation between union requirement. However, Ocean Yield has invested approximately NOK 600 mil- have faced substantial criticism and tur- the measures imposed on them. Some and employee representatives and far exceeded the minimum return over lion. This is a high-risk investment, how- bulence. Have Aker and I made mistakes measures are ones we would never Staff at Aker Solutions, Akastor and management at Aker and Aker-owned the full period since formation in 2012 ever the downside is limited and the in- along the way? Certainly. Have we tried have implemented on our own, such as Kværner have weathered tough condi- companies allows major changes and and listing in 2013. vestment has the potential, with an OSV to do the right things to create profita- onshore power for offshore platforms. tions over the past two years. Uncer- adjustments to be implemented in a sector upturn, to increase in value many ble jobs on trawlers, forward-looking Such matters are decided by the owner tainty and job insecurity have set their collegiate and effective manner. Such Ocean Yield’s fleet currently comprises times over. Aker has provided no guar- businesses and jobs in the refineries? of the resources, the Norwegian State. mark on the working environment. We cooperation and flexibility make Aker 34 ships. The company’s EBITDA order antees, but has promised creditors that Definitely. I wish all Norway Seafoods In other words, the host decides what have lost numerous staff due to down- different. book totalled more than NOK 26 billion Aker will not sell its shares in the ship- and Havfisk employees the best of luck we will eat and drink, even though some sizing, and I feel for all those affected. at the beginning of 2017, even after a ping company until 2021 at the earliest. going forward, and good fishing. I miss may have brought a packed lunch. We Ambitious improvement programmes reduction in revenues from three off- you already. will continue to behave ourselves so These companies are centres of knowl- are bearing fruit. Aker-owned compa- shore vessels due to the financial dif- It is sad to see how much money is being that we will be invited again next time edge and technological excellence, and nies have identified substantial poten- ficulties experienced by two shipping lost in the offshore service vessel indus- Both the sale of the white fish shares are home to many skilled engineers and tial efficiency and cost improvements. companies. Ocean Yield’s portfolio is try. In hindsight, it is clear that tradition- and the new NOK 2.6 billion investment The most responsible thing Aker BP can other specialists. They do not produce on a steady course, generating fore- al shipping families over-invested. At in Aker BP are in line with Jean Paul do for the community is to deliver the consumables or standardised prod- Aker Solutions delivered improved seeable quarterly dividends. Aker, we have asked ourselves wheth- Getty’s wise words above. greatest possible profits. I believe this ucts, but rather tailored solutions after margins on its order and project port- er it was reckless investment decisions to be in the best interests of the State, winning a contract or an order under a folios in 2016. So too did Kværner. Both Growth should not come at the ex- and/or customer demands that made In recent years, I have reiterated nu- the shareholders and the environment. framework agreement. companies have won important field pense of quality and profitability. Lars new builds a condition of participation merous times that if you do not have Some may shake their heads at such a development contracts, for example Solbakken, CEO of Ocean Yield and a in contract tenders. faith in oil and gas, you should sell your statement, and others will ignore it. Like many other market players, we relating to the Johan Sverdrup field, substantial shareholder, is making sure Aker shares. This still applies. have hoped and expected an upturn and reconstruction assignments like of this. We believe that the time is right to par- Of every one krone an oil compa- in the market, but have had to register the NOK 5 billion Njord platform re- ticipate in the consolidation of the OSV My macro-view of the oil and gas indus- ny earns, 78 øre go to the State and postponement and shelving of projects. build contract. Aker is becoming more and more trans- market, but we cannot be certain. At try remains as set out in previous letters Norway’s inhabitants, while sharehold- Order inflow is low, and order books are parent. At the end of 2016, 92 per cent Aker, we look forward to working with to shareholders. Oil is and will remain ers receive 22 øre. The State spends shrinking from quarter to quarter. Low- Under Kristian’s leadership, Akastor re- of Aker’s NAV comprised listed shares John Fredriksen and his staff on a re- the world’s largest, most important these revenues as it deems fit, and Aker er activity levels necessitate cuts in ca- leased NOK 2.6 billion through transac- and cash. This proportion has been ris- structuring of Solstad Farstad, which commodity for many years to come. BP’s shareholders are equally free to re- pacity, and in the end that unfortunately tions last year. The proceeds have been ing steadily for several years. currently has a fleet of some 154 ships Costs and climate impact are the great- invest their dividends in renewable en- means job losses. It is customers who used to repay debt. Akastor’s subsidiary stemming from the formerly separate est potential challenges. Oil prices will ergy if they wish. determine activity levels and forms of MHWirth has adapted to the realities The listed equity investments in Aker entities Solstad, Rem, Farstad and Deep remain volatile in the years ahead. collaboration. of the global new-build market for drill BP, Aker Solutions, Akastor, Ocean Yield Sea Supply. Given his wealth of knowl- The best measure of Aker BP’s per- packages, which remains at an all-time and Kværner had a combined value of edge and experience, we could not have I have been involved in the industry for formance is the return it generates. Activity and value creation have fluctu- low. The company has cut costs to the NOK 33.7 billion at year-end 2016, cor- found a better partner than John. more than 20 years, primarily on the It has to find the smartest and cheap- ated considerably throughout the 50- bone and is concentrating on comple- responding to 96 per cent of Aker’s in- supplier side. Aker BP provides a robust est field-development solutions and year history of Norway’s, and Aker’s, pe- tion of existing projects and aftermarket dustrial investments and 78 per cent of Aker’s sale of its fisheries investments foundation for innovation in a conserva- achieve the lowest possible operating troleum adventure. Overall, taking into and other service provision. Aker’s total assets. released NOK 2.2 billion and crystallised tive industry. The objective is to find and costs per barrel produced, all within account both the peaks and the troughs, a gain of NOK 1.8 billion in 2016. The produce oil at the lowest possible cost the framework of optimal HSE perfor- 8 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 SHAREHOLDER LETTER FROM THE CHAIRMAN 2017 9

mance. Aker BP will be a leader in the are even worse when player turnover is climate challenges. The sharing of Aker BioMarine will be able to generate Krill fascinates me. Researchers have I find the sequence funny, but also draw use of digital tools, cost-effective drill- high and new players are used who lack knowledge and experience through over the next five to seven years. found 85 different krill species in the a lesson from it. The receptionist replied ing and tie-back of reservoirs to existing the necessary skills to coordinate de- coordination and digital media is key world’s oceans, including six Antarctic precisely to the inspector’s question. subsea solutions. Watch what we do, fensive and offensive manoeuvres. for knowledge-exploitation and more In earlier letters to shareholders, I have species. The dominant species, Euphau- Clouseau assumed that the receptionist and evaluate us based on our results. efficient working. given much praise and applied many sia Superba, is the resource harvested owned the dog, and failed to quality- Aker BP is using collaborative mod- superlatives to Aker BioMarine. I have by Aker BioMarine. The genome of krill assure the reply. The lesson is that the Aker’s priority for Aker BP is to main- els with suppliers to improve mutual The oil industry as a whole has just referred to the company as a wild card may be as much as 20 times longer than precision of a question determines the tain growth on the Norwegian conti- performance. The alliance with Aker started on what is certain to be an ex- and a game-changer with the poten- the genome of a human. Arctic krill rep- precision of the answer. nental shelf. Optimal growth will be Solutions and is a start, with treme transformation. The supplier in- tial to generate substantial shareholder resent an enormous biomass, although achieved through collaboration with the trio working as an integrated team dustry is under pressure, and suppliers value. I have even indicated that Aker estimates of its size vary. Thus far, re- In this regard, I have many people to partners and suppliers. In most cases, to find the smartest, cheapest subsea should communicate the challenge to BioMarine may become Aker’s most search has concentrated on depths thank at Aker for asking the right, and the State is an excellent partner. solutions for Aker BP’s portfolio. I have their customers. valuable investment one day. Howev- down to 250 metres, and Aker BioMa- precise, questions about small and large high expectations as to the outcome of er, Aker BP’s success will be difficult to rine intends to invest in further investi- issues. Doing so demands knowledge Major contracts are entered into when this cooperation. Aker BP will report In its capacity as main shareholder emulate gation of the opportunities. and integrity. So to all my colleagues an operator’s development and opera- on the results achieved, good and bad. and industrial leader in Aker Solutions, at Aker, the directors, the directors of tional plan is approved by the Storting In April 2017, Aker BP entered into a Kværner and Akastor, Aker sees not In 2017, Aker BioMarine has ordered a The potential of krill flour and krill oil the portfolio companies, employee rep- (the Norwegian parliament). Under the long-term framework agreement with only opportunities and challenges, but modern krill vessel for a little over NOK is limited only by our own ambitions. I resentatives, shareholders, partners, tax system, taxpayers cover 90 per cent Aker Solutions, Kværner, Siemens and also realities that have to be taken into 1 billion. Aker BioMarine has also iden- hope that we will reap the rewards one analysts and politicians, thank you. In of cost overruns in development pro- ABB encompassing engineering ser- account. Aker’s supplier businesses and tified a need for investment in research day. I am as firm in my belief in the up- 2016, no-one “bit” Aker and caused us jects. Unfortunately, overruns are all too vices, fabrication/hook-up, electro-/IT employees have been trusted partners and development of markets, prod- side of Aker BioMarine as I have ever financial harm. We have avoided major common. and control systems. Our shared aim is for their customers for many decades. ucts, applications and innovations. In been, and can be patient. Good things mistakes. to boost efficiency, reduce execution We are grateful for this. In collaboration my view, it is right for the company to come to those who wait. I have a piece of friendly advice for the times, eliminate non-value-creating with oil companies, we have developed invest as necessary to remain at the Looking forward, I hope that Aker will parliamentarians who approve develop- activities and cut costs. groundbreaking products, technologies forefront of sustainability, innovation, Sceptics and optimists regularly ask me remain proactive and continue to de- ment plans exceeding NOK 10 billion: be and solutions, and executed complex patents and market and product de- questions about Aker BioMarine. I real- liver increased shareholder value. We careful about who you lend the taxpay- Some see a difficulty in Aker being rep- projects. velopment. Aker BioMarine has a book ly appreciate this. Sometimes, I have to will continue to base our decisions on er’s credit card to. Given the size of the resented on several sides of the table value of NOK 1.4 billion in Aker’s NAV smile. On other occasions, incisive ques- precise, critical and well-considered overdrafts we have seen in the past, close due to its interests in Aker BP, Aker Aker’s supplier businesses are attrac- calculation. This equates to 3.3 per tions lead me to consider new dimen- questions to identify the best way for- examination of the account statement is Solutions and other supplier compa- tive. It is too early to conclude as to the cent of Aker’s total assets. sions, opportunities and challenges. ward for Aker’s shareholders, the port- essential. The explanation or interpreta- nies. In theory (and unfortunately in right solution for the companies, their folio companies, staff, customers and tion of facts and realities should not be practice), there is always room for the shareholders and staff. We are open to Sales in 2016 totalled USD 117 million, I would like to conclude this year’s let- partners. Our – and my – ambition, as left to PR people and spin doctors. invention of conspiracies. building larger, stronger companies in resulting in EBITDA of USD 36 million ter to shareholders with a sequence always, is to continue making a differ- collaboration with others and to selling and EBITDA of USD 28 million including from one of the Pink Panther films fea- ence and add the X-factor. I am astonished that these cost overruns Few industries are as transparent and all or some of our ownership interests. non-recurring items. Aker BioMarine’s turing the actor Peter Sellers in his role and delays do not attract more atten- yet as closed as the Norwegian oil sec- Aker has no problem with being a small- interest-bearing debts amounted to as Inspector Jacques Clouseau. The tion, given their impact on public financ- tor. Oil companies have overlapping er shareholder in a bigger company of NOK 1.5 billion before the investment in inspector checks into a simple hotel. A es. Aker and Det norske oljeselskap have licence areas and can see the other industrial significance. The creation of the new krill vessel. dog is lying next to the reception desk, also made mistakes. The development players’ cards. Licence interests are larger industrial entities for the benefit and Clouseau asks, in poor English: Kjell Inge Røkke of the Jette field is an example of ex- traded and operatorships are swapped. of the businesses and their customers is Since its formation, Aker BioMarine has On behalf of the family tra costs and poor resource utilisation. Market participants have historical data a part of Aker’s inheritance and future. worked with WWF, other environmental "Does your dog bite?" I hope that all of us who were involved on factors as specific as the price of a It is through transactions that Aker has organisations and research institutions "No," replies the receptionist. The PS: As in previous years, I would like to in that project have learned something, kilogramme of steel for a substructure generated most of its shareholder value. to learn more about sustainable har- inspector bends down to pat the dog. thank my wife and fellow shareholder and that some good has come of it. or a top deck, and there is transparency That is why I both hope and believe that vesting in the Southern Ocean and the "Nice doggie, says Clouseau." The dog Anne Grete for her help with the form, When collective errors are made, it is about acceptable price and cost levels 2017 will see changes in the ownership development of krill-based ingredients bites his hand. content and spelling of this year’s letter important to learn the collective lessons. for components such as X-mas trees, structures of one or several of Aker’s for both the consumer and animal-feed "I thought you said your dog did not to shareholders subsea control systems, processing part-owned supplier companies. markets. The company has made great bite," says an agitated Clouseau. Procurement rules are designed to en- equipment, electrical works, cabling strides, but should make considerable "That is not my dog," is the reply. Akerkvartalet, 20 April 2017 sure correct pricing of goods and ser- and services. Those of you who have faith in oil, but further progress on product and market vices, but common sense should also are sceptical of our investment in krill development. play a role. In case anyone is in doubt: there are of oil: please give us the benefit of the course rules and guidelines for dealing doubt. In other words, to employ a football with situations where questions can metaphor: better coordination and be asked about potential conflicts of Like oil, krill oil is suited to investors with more interaction between oil companies interest or the impartiality of Aker and a patient and long-term outlook, as well and suppliers is crucial. The best team Aker-owned companies. as financial muscle and industrial am- is composed of players who manage to bitions. Almost 15 years have passed deliver on an agreed strategy game af- The challenge facing the industry is since Aker invested in its first trip to ter game, not players who switch tactics how oil companies and suppliers can the Southern Ocean. Aker must be pre- every match. The prospects of victory work together to overcome cost and pared to invest more than the cash flow

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