Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2020 Earnings Presentation
43 slides from Akva Group Asa's earnings presentation, Nov 6, 2020
Slide 1: Q3 2020 Presentation
Q3 2020 Presentation Klepp – 6 November 2020 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A 2
Slide 3: Highlights Q3 2020 – by CEO Knut Nesse
Highlights Q3 2020 – by CEO Knut Nesse 3
Slide 4: Order intake development
Order intake development Order intake • Order intake of 647 MNOK 1 107 -17% 997 44 994 • Solid increase in the Cage Based Nordic business in 46 21 Norway compared to Q3 2019 300 760 778 825 709 218 33 13 236 38 19 • Within Cage Based International, Chile and Canada 10 50 215 647 77 experienced lower
Slide 5: Revenue development
Revenue development Revenue • The Cage Based Nordic business had a revenue increase of 6% versus Q3 2019 +4% • Revenue remain high in Cage Based business in 18 Americas with 32% increase compared to Q3 2019 • Land Based with increase in revenue, both versus Q2 852 862 798 806 2020 and Q3 2019 726 75
Slide 6: EBITDA development
EBITDA development EBITDA -8% • EBITDA of 105 MNOK in the quarter 115 105 101 18 97 93 86 • The Cage Based Nordic business, including Egersund Net, with a solid contribution and increased EBITDA 57 with 35% versus Q3 2019 101 105 97 97 93 86 57 • Within Cage Based International, Americas delivered 2
Slide 7: High order backlog
High order backlog Order backlog • Order backlog at end of Q3 2020 of 1.6 BNOK +7% 1 783 1 694 1 650 • Strong momentum for the Cage Based Nordic business 1 611 1 572 1 625 1 524 with 17% increase compared to end of Q3 2019 1 356 674 605 771 629 611 569 747 448 • Within Cage Based International, Expo
Slide 8: Key financial metrics – year to date
Key financial metrics – year to date Revenue EBITDA EPS 0% -9% -12% 18 0,45 0,32 0,27 0,54 2 422 2 420 294 284 3,01 1 854 2,80 2,66 2,51 1 531 180 182 Q3 17 Q3 18 Q3 19 Q3 20 Q3 17 Q3 18 Q3 19 Q3 20 Q3 17 Q3 18 Q3 19 Q3 20 YTD YTD YTD Gain sale Wise Amortization from intangible assets related to acq
Slide 9: Our presence
Our presence AKVA group Agents and distributors 9
Slide 10: Revenue in geographical regions
Revenue in geographical regions AKVA group’s geographical regions – absolute and relative 852 862 798 806 771 752 726 655 65% 63% 68% 598 70% 74% 70% 69% 633 474 546 76% 603 541 506 428 20% 147 22% 155 144 190 196 24% 17% 20% 22% 24% 177 145 136 17% 132 13% 18% 42 74 59 76 83 73 64 6% 9% 7% 10% 8% 8
Slide 11: Development in OPEX based revenue
Development in OPEX based revenue 300 33,8% 35 32,3% 31,2% 30,1% 29,3% 28,7% 29,8% 30 • Egersund Net contributing 89 MNOK in the 250 27,5% quarter 25 200 94 112 93 89 90 104 89 20 150 82 • Increase in activity and margins in the Chilean 15 service business 100 10 151 144 146 136 154 151 116 132 50 5
Slide 12: Revenue by product group and species
Revenue by product group and species By product groups – Q3 2020 By species – Q3 2020 852 862 852 862 798 6 806 752 806 1 44 771 752 65 16 3 16 56 798 771 56 23 32 23 Software 726 118 0 39 0 28 1 17 93 726 66 68 655 62 41 44 95 655 13 39 92 78 Non seafood 74 37 LBT S&AS 1 1 16 225 35 129 Other speci
Slide 13: Q3 – Operational Highlights
Q3 – Operational Highlights • Delivery of the 100 MNOK TubenetTM contract continued throughout Q3 • The Cage Based Nordic business with solid performance in the quarter • Cage based business in Chile continue with high activity despite the uncertainty of the COVID-19 outbreak • Increased activity on
Slide 14: Group Strategy process initiated – key themes
Group Strategy process initiated – key themes Land Based Digital On-growing Data Platform Post Smolt Computer vision / AI Innovation Learning & Development Prioritization People and competence Fish health concepts Project and contract management Capital Markets Day to be webcasted on November 24th,
Slide 15: Tubenet TM
TubenetTM • A patented concept for improved fish welfare • Proven to reduce lice infestation with 80%, with the potential to reduce the lice precence to almost 0 if the tube is deep enough • Suitable for AGD treatment • Reduced risk of escape: damages to the upper part of the net will not be a conce
Slide 16: Separate focus on full grow out RAS facilities
Separate focus on full grow out RAS facilities • AquaCon AS (Norwegian company) • Nordic Aqua Partners A/S (Danish company) • Full grow out facility in Maryland, USA • Full grow out facility in Ningbo, China • Total capacity of 45,000 tonnes, whereof first phase of • Total capacity of 9,600 tonnes,
Slide 17: High market activity for full grow out RAS facilities
High market activity for full grow out RAS facilities • A cooperation and engineering contract signed with • Engineering contract signed with Ecofisk AS Vikings Investment Holding Ltd. – RAS grow-out facility at Tysvær, Rogaland, Norway – RAS grow-out facilities in the Middle East – Phase one 5,000
Slide 18: Covid-19
Covid-19 The Covid-19 virus has had a massive impact around the globe. So far AKVA group has been moderately impacted. The major impacts financially for AKVA group has been related to two newly awarded RAS contracts on Land Based being cancelled. AKVA group has taken action with the following focu
Slide 19: Financial performance Q3 2020 – by CFO Ronny Meinkøhn
Financial performance Q3 2020 – by CFO Ronny Meinkøhn 19
Slide 20: Q3 2020 – Financial highlights
Q3 2020 – Financial highlights Revenue 852 862 • Last twelve months order intake and revenue now at 752 798 771 806 3,175 MNOK and 3,075 MNOK respectively 726 637 655 627 589 537 557 • Growth in revenues of 6% in the Cage Based Nordic 510 484 business compared to Q3 2019 • Cage Based business in Ame
Slide 21: Q3 2020 – Financial highlights
Q3 2020 – Financial highlights EBITDA (MNOK) 150 115 105 97 86 101 93 • Cage Based Nordic with solid performance 100 54 59 65 61 71 60 57 52 50 0 • Americas region with increased margins both compared to Q2 2020 and Q3 2019 -50 -40 Q1 Q2 Q3 Q4 2017 2018 2019 2020 • Land Based segment with EBITDA of
Slide 22: Cage Based Technology
Cage Based Technology Revenue and EBITDA % Nordic 800 16 14,4% • Cage based business in Nordic with solid 700 633 694 14 performance and increase in both revenues 12,6% 63 and EBITDA compared to Q3 2019 600 74 12 187 500 142 10 • Net sales out of Egersund contributing strongly with an increase in EB
Slide 23: Cage Based Technology
Cage Based Technology International Revenue and EBITDA % 800 16 Americas 14,4% 633 694 700 14 • Chile with increased revenue and margins compared 12,6% 63 to Q3 2019 600 74 12 187 • Increased activity in Canada with higher revenue 500 142 10 compared to Q3 last year 400 8 300 6 EME 200 418 444 4 • T
Slide 24: Land Based Technology
Land Based Technology Revenue and EBITDA % • Order backlog remains strong at 746 MNOK at 96 the end of Q3 2020 100 14 92 0 1 4 90 12 9 • Increased activity compared to both Q2 2020 10,0% and Q3 2019 80 10 70 • Several engineering contracts signed and 8 started on for full grow-out facilities 60 92 6
Slide 25: Software
Software Revenue and EBITDA % 45 35 • Increase in revenue from our Fishtalk 31,6% products compared to same quarter last 40 27,5% 30 year 35 25 30 28 • Digital solutions integrated part of our product offerings 25 20 12 20 15 16 • Last year revenue and EBITDA included 12 1 15 1 MNOK and 0.5 MNOK res
Slide 26: Financials – Detailed P&L
Financials – Detailed P&L P&L 2020 2019 2020 2019 2019 (MNOK) Q3 Q3 YTD YTD Total OPERATING REVENUES 806 771 2 420 2 422 3 077 Operating costs ex depreciations 701 657 2 136 2 110 2 805 • Investment in associated companies accounted EBITDA 105 115 284 312 272 Depreciation 25 22 58 67 64 for by equit
Slide 27: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 465 15,0% 424 14,8% 600 500 15 450 406 14,2% 15 12,6% 550 447 12,9% 368 450 400 389 500 12,1% 331 400 350 10,8% 450 10,3% 350 9,3% 316 400 9,0% 10 300 10 300 287 273 350 250 300 250 565 562 250 535 516 20
Slide 28: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Revenue % CAPEX breakdown 2020 Rental 90 000 8,4% 9 Intangible 6 285 80 000 8 6,8% 6,7% 70 000 5,8% 7 60 000 6 32 893 50 000 5 4,2% 4,0% 4,1% 40 000 3,5% 4 3,0% 64 893 30 000 2,6% 3 20 000 42 852 42 225 43 878 2 54 416 35 556 30 325 35 214 23 913 28 054 Ordinary 10 000 1
Slide 29: Net interest-bearing debt/EBITDA of 2,9
Net interest-bearing debt/EBITDA of 2,9 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (MNOK) 1 160 1 300 3,5 3,6 1 202 3,85 Net interest bearing debt 30.06.2020 667 1 200 3,50 EBITDA -105 1 086 1 056 3,3 1 080 1 021 1 100 Income taxes paid 9 1 000 977 2,9 3
Slide 30: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 1 063 1 068 1 096 1 074 1 100 1 055 1 037 1 032 50 0,75 0,8 1 017 991 1 000 0,68 39,8% 0,65 0,7 900 38,2% 39,3% 38,4% 37,9% 0,62 0,64 37,7% 37,3% 37,0% 40 0,60 35,9% 0,57 0,57 0,6 800 700 0,49 30 0,5
Slide 31: Group financial profile, continued
Group financial profile, continued ROCE ROACE 9,8% 11,9% 7,9% 7,9% 8,5% 10,1% 7,0% 9,1% 8,6% 9,0% 3,6% 2,6% 2,2% 3,3% 2,7% 1,8% 2,2% 1,8% Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q220 Q3 20 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Exceptional items impacting Q4 2019 EBIT with effect
Slide 32: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2020 2019 2020 2019 2019 (NOK 1 000) Q3 Q3 YTD YTD Total Net cash flow from operations 89 503 76 905 244 711 229 944 180 151 Net cash flow from change in w orking capital -40 586 37 779 -21 305 -94 777 30 617 Net cash flow from operat
Slide 33: Balance sheet
Balance sheet BALANCE SHEET 2020 2019 2019 (MNOK) 30.09 30.09 31.12 ASSETS 3 302 3 175 3 034 Intangible non-current assets 1 073 1 047 1 028 Tangible non-current assets 327 361 364 Right-of-Use Asset 398 418 417 Financial non-current assets 105 74 75 Inventory 492 453 514 Receivables 645 663 476 Cas
Slide 34: Dividend and dividend policy
Dividend and dividend policy Dividend Policy Cash Dividend • The company is aiming to give the shareholders a competitive return on investment by a combination of cash dividend and share price increase • The company’s dividend policy shall be stable and predictable • When deciding the dividend the B
Slide 35: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 20 703 105 62,1 % EGERSUND GROUP AS NOR Last 12 months 3 900 000 11,7 % WHEATSHEAF INVESTMENTS LIMITED GBP Share price Trading volume 1 192 593 3,6 % SIX SIS AG Nomi nee CHE 80 25 000 000 974
Slide 36: Outlook – by CEO Knut Nesse
Outlook – by CEO Knut Nesse 36
Slide 37: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 10 and service exchange countries countries. partner since 2006 over 40 1 449 years employees 37
Slide 38: Solutions
Solutions Cage Based Technology Land Based Technology Software 38
Slide 39: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue 39
Slide 40: Order backlog and inflow, 2017 through 2020
Order backlog and inflow, 2017 through 2020 Order backlog Order intake 1 783 1 106 1 694 1 611 1 650 1 572 1 625 994 997 1 523 778 1 430 300 55 1 380 1 381 1 356 236 218 825 605 1 318 1 274 771 674 629 778 760 51 611 709 1 077 479 1 085 569 747 639 10 77 647 215 629 537 448 620 449 589 51 304 546 72
Slide 41: Outlook – AKVA group
Outlook – AKVA group • Order backlog remains high • Strong interest in the market for the TubenetTM solution (preventive sea lice solution) • Signed engineering and design contract with the Norwegian company Ecofisk AS with potential delivery contract and equity participation from AKVA • Maintained
Slide 42: Customer focus
CUSTOMER FOCUS AQUACULTURE X09 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 43: AKVA group
AKVAcRouP