Akva Group Asa · OSL:AKVA

Akva Group Asa — Q2 2024 Earnings Presentation

51 slides from Akva Group Asa's earnings presentation, Aug 16, 2024

  1. Slide 1: Q2 2024 Presentation

    Q2 2024 Presentation Oslo, 16 August 2024 Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  2. Slide 2: Pioneering a better future

    Pioneering a better future AKVAcrour

  3. Slide 3: Agenda Q2 2024

    Agenda|Q2 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  4. Slide 4: Highlights Q2 2024

    Highlights|Q2 2024  Record high revenue of MNOK 1 014  Improved financial performance and EBIT of MNOK 63  Acceptable order intake in Sea Based of MNOK 713 but still slow market in Land Based  Acquisition of 100% ownership in Observe Technologies completed to further strengthen and complement di

  5. Slide 5: Key figures Q2 2024

    Key figures|Q2 2024 Revenue EBITDA EBIT 1 014 MNOK 110 MNOK 63 MNOK 110 1 014 63 940 93 907 862 86 832 42 79 38 32 3 Q2 20 Q2 21 Q2 22 Q2 23 Q2 24 Q2 20 Q2 21 Q2 22 Q2 23 Q2 24 -41 Q2 20 Q2 21 Q2 22 Q2 23 Q2 24 Pioneering a better future

  6. Slide 6: Key figures H1 2024

    Key figures|H1 2024 Revenue EBITDA EBIT 1 799 MNOK 177 MNOK 83 MNOK 179 177 1 756 1 814 1 799 162* 83 80 1 614 145 68* 1 551 106 49 17 H1 20 H1 21 H1 22 H1 23 H1 24 H1 20 H1 21 H1 22 H1 23 H1 24 H1 20 H1 21 H1 22 H1 23 H1 24 * Note: Costs of 49,7 MNOK related to cyber-attack in H1 21 are excluded Pi

  7. Slide 7: Development order intake and order backlog

    Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 840 2 884 89 162 2 609 2 599 150 2 396 158 2 417 150 150 1 062 1 905 1 495 917 888 1 728 1 451 1 454 718 45 26 72 149 600 0 40 4 21 Digital Digital 690 800 713 574 679 Land Based 946 Land Based 817 731 792 816 Sea

  8. Slide 8: Strategic and Operational Status

    Strategic and Operational Status Pioneering a better future

  9. Slide 9: Traditional farming technology & area out of capacity

    Traditional farming technology & area out of capacity - New technology needed to bridge the demand 7 000 000 Consumption growth 5.0% 6 000 000 5 000 000 4 000 000 Traditional cage production growth 1.5% 3 000 000 2 000 000 1 000 000 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

  10. Slide 10: Growth possibilities in salmon production during the next decade

    Growth possibilities in salmon production during the next decade Traditional coastal Offshore Closed coastal Super-exposed Semi-offshore Post smolt and full cycle on land Pioneering a better future Source: Salmar Aker Ocean

  11. Slide 11: Long production time in sea is driving higher mortality and production costs

    Long production time in sea is driving higher mortality and production costs Observed correlation between production time and correlation of diseases  Data from over 5000 production cycles (Norway)  A rising trend for both diseases and lice treatments as the time fish spend at sea increases Bar pl

  12. Slide 12: Conclusions – strategy to reduce mortality

    Conclusions – strategy to reduce mortality  A viable productions strategy will be to reduce production time in open sea cage farming. This will likely lead to reduced no of treatments, better fish health and lower mortality.  A postsmolt strategy either on land or closed in sea is today available

  13. Slide 13: Precision Farming - Sea Based Solutions

    Precision Farming - Sea Based Solutions - From advanced, tailored marine infrastructure to single components and products Marine Precision Deep farming Infrastructure Feeding & Lice control - quality equipment for better - for optimizing fish - reducing lice problems operations performance, feed con

  14. Slide 14: Deep farming concept - Nautilus

    Deep farming concept - Nautilus - Can solve one of the biggest sustainability challenges in aquaculture: salmon lice Important innovations Digital support Airdome Waterborne feeding NAUTILUS Pioneering a better future

  15. Slide 15: Post-smolt RAS concept is validated

    Post-smolt RAS concept is validated There are significant benefits from a post smolt strategy:  Reduced time in the sea means less lice treatment and improved fish health  Better utilization of licenses provides improved volume with 30% or higher dependent on the size of the post smolt  AKVA has

  16. Slide 16: AKVA expands into re-use technology for grow-out – first contract

    AKVA leverages its experience and expands into re-use technology for grow-out – first contract signed with Laxey on Iceland  AKVA has previously delivered several facilities with re-use technology to smolt  First contract with Laxey for re-use technology deliveries and advisory services to Grow-ou

  17. Slide 17: NOAP phase II has started

    NOAP phase II has started  Construction of NOAP phase I is completed early Q2 with an annual capacity of 4,000t. Financial closure of the project was done in Q2  NOAP phase II is initiated with additional annual capacity of 4,000t  Phase II to be executed towards end of 2024 and during 2025  AKV

  18. Slide 18: Expected activity level Land Based

    Expected activity level Land Based  Total order backlog of BNOK 1,5  With main basis in order backlog the expected activity level for 2024 will be approx. MNOK 600 – Soft activity level in first half of 2024 due to closing of “old” projects and slowly start up of new projects – Project margins wil

  19. Slide 19: Our digital solutions

    Our digital solutions We are present in all the world's markets  107 sites worldwide on  Global market share of 60%  368 modules worldwide on  23 sites worldwide on recurring revenue model recurring revenue model recurring revenue model - A complete platform that enables precision farming on the

  20. Slide 20: Acquisition of 100% ownership in Observe Technologies

    Acqusition of 100% ownership in Observe Technologies  Ownership increased from 33.69% to 100% with effect from 5th of July 2024  Minimum purchase price for the 66.31% of the shares of MGBP 13.7 – MGBP 6.5 paid at closing by utilizing options under AKVA’s existing bank financing – MGBP 7.2 settled

  21. Slide 21: Automation Complete visibility Efficiency

    - Key components with a focus on operational gains Automation Complete visibility Efficiency Data driven Feeding and camera automation Integrated collection of data into The fish farmer can operate Movement towards objective and a unified platform more pens/locations with data-driven feeding – towar

  22. Slide 22: Revised medium term financial targets

    Revised medium term financial targets Revenue growth Profitability EBIT enablers  2024: Min. 5% growth (BNOK 3,6)  2024: 4-5% EBIT  Operational excellence but no growth in Land Based  2025: min. 6% EBIT  Cost reduction program implemented 2023  Long term: Organic topline growth of  Improve RO

  23. Slide 23: Agenda Q2 2024

    Agenda|Q2 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  24. Slide 24: Q2 2024 – Income statement

    Q2 2024 – Income statement  Revenues increased by MNOK 74 NOK million 2024 Q2 2023 Q2 2024 YTD 2023 YTD 2023 Total compared to Q2 23 Revenue 1 014 940 1 799 1 814 3 432 Cost of materials 590 561 1 016 1 094 1 996 Payroll expenses 255 236 486 465 954  EBIT increased by MNOK 25 from MNOK Other opera

  25. Slide 25: Revenue and order intake development

    Revenue and order intake development  Last twelve months order intake and revenue was Revenue and order intake (MNOK) MNOK 3,123 and MNOK 3,416, respectively Revenue 1 840 Order intake  Revenue increased by 8% compared to Q2 23 and is primarily related to Sea Based  Acceptable order intake in Q2

  26. Slide 26: Revenue by Market and Segment

    Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 1 014 1 014 940 35 940 57 33 137 63 99 817 800 817 174 33 784 800 784 40 37 127 40 50 55 171 124 96 142 101 109 86 178 180 175 154 842 733 688 660 618 646 572 AustralAsia 502 466 489 Europe & Middle East Digital Americ

  27. Slide 27: EBITDA development

    EBITDA development  EBITDA margin increased from 9,1% in Q2 23 EBITDA to 10,8% in Q2 24 10,8% 120,0 11,0 110,0 9,5% 10,0 9,1%  Strong EBITDA margin of 12,6% in Sea Based 100,0 8,6% 9,0 90,0 8,0 80,0  Still low profitability in Land Based due to soft 7,0 70,0 activity level and closing of NOAP pha

  28. Slide 28: Cash flow and financial position

    Cash flow and financial position Available cash (MNOK) Net Working capital Net debt / EBITDA* 600 600 11,6% 12 1 800 4,35 4,33 4,55 11,3% 4,16 522 526 11 4,02 4,20 519 10,4% 1 600 500 500 10 3,66 3,85 8,6% 9 1 400 1 307 3,50 1 268 398 3,15 400 400 377 8 1 200 1 123 1 088 1 109 355 2,80 6,2% 7 491 47

  29. Slide 29: Development Net interest-bearing debt

    31.03.2024 1 307 EBITDA 110 27 Net interest 4 Corporate taxes Pioneering a better future 22 Change WC 33 CAPEX NIBD Q2 2024 (MNOK) 14 New IFRS 16 liability 23 Currency & Other 30.06.2024 1 268 31.12.2023 1 109 EBITDA 177 45 Net interest 8 Corporate taxes Change WC 143 83 CAPEX Development Net intere

  30. Slide 30: Capital expenditure

    Capital expenditure CAPEX (MNOK)  Total CAPEX of MNOK 33 in Q2 24 - MNOK 17 applies to our three innovation agendas - MNOK 7 is related to the new global ERP system  CAPEX year to date of MNOK 83 50 44 2 8 35 32 33 0 8 3 48 32 36 28 30 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Growth Maintenance Pioneering a

  31. Slide 31: Dividend

    Dividend Cash dividend (NOK per share)  The company has decided not to pay any dividend for the second half year of 2024 1,00 1,00 0,00 0,00 2021 2022 2023 2024 Pioneering a better future

  32. Slide 32: Business segments

    Business segments Pioneering a better future

  33. Slide 33: Sea Based Technology

    Sea Based Technology Overall Revenue (MNOK) and EBITDA-margin (%)  Revenue increased by MNOK 109, and EBITDA margin increased 1 300 from 11,2% in Q2 23 to 12,6% in Q2 24 18 1 200  Order intake increased from MNOK 690 in Q2 23 to MNOK 713 16 in Q2 24 1 100 14 1 000 12,6% Nordic 900 11,2% 842 12  R

  34. Slide 34: Sea Based order intake and backlog development

    Sea Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 900 2 800 2 700 946 817 792 816 2 600 731 2 500 800 2 400 690 574 679 713 2 300 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 12M Revenue 12M Order Intake Order Backlo

  35. Slide 35: Development OPEX based revenue

    Development OPEX based revenue  OPEX based revenue was 33,9% of total Sea Based Revenue (MNOK) revenue in Q2 2024 400 45 42,5% 41,0% 350 37,4% 40  Positive trend continues and OPEX based revenue 35,8% 33,9% 35 was MNOK 22 higher in Q2 24 compared to Q2 23 300 30 250 25 200 20 150 271 285 263 263 1

  36. Slide 36: Land Based Technology

    Land Based Technology Revenue (MNOK) and EBITDA-margin (%)  Order intake of MNOK 149 in Q2 is related to minor projects 300 18 16  Soft activity level and revenue decreased by 21% in Q2 14 24 compared to Q2 23 12 200 174 10 1 0  Profit margin in Q2 24 is influenced by the low activity 137 8 level

  37. Slide 37: Land Based order intake and backlog development

    Land Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 000 1 500 1 905 1 000 500 1 728 1 454 1 495 1 451 1 062 149 0 4 0 72 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 12M Revenue 12M Order Intake Order Backlog Order In

  38. Slide 38: Digital

    Digital Revenue (MNOK) and EBITDA-margin (%)  Order intake of MNOK 26 is MNOK 63 lower than the same quarter last year 65 23,8% 25 60 55  Slight increase in revenue of 6% compared to Q2 23 50 20 45 40  EBITDA is still soft due to high cost level compared to the 14,3% 35 15 35 33 current activity

  39. Slide 39: Digital order intake and backlog development

    Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 200 180 160 140 162 120 158 150 100 150 150 80 89 60 40 45 21 26 40 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 12M Revenue 12M Order Intake Order Backlog Order Intake P

  40. Slide 40: Outlook

    Outlook Pioneering a better future

  41. Slide 41: Outlook

    Outlook  Salmon prices expected to remain strong driven by reduced supply  AKVA expects to see normalization of the post smolt market in Norway during the second half of 2024 and 2025  AKVA is aiming for revenue of minimum BNOK 3.6 and EBIT of 4-5% in 2024  AKVA will continue to invest and impro

  42. Slide 42: Disclaimer

    Disclaimer  All opinions and statements in this notice are, regardless of source, given in good faith, and may only be valid as of the stated date of this notice and may be subject to change without notice. AKVA group has taken all reasonable steps to ensure that the information contained in this n

  43. Slide 43: Agenda Q2 2024

    Agenda|Q2 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  44. Slide 44: Appendix

    Appendix Pioneering a better future

  45. Slide 45: AKVA group in a brief

    AKVA group in a brief AKVA group is the leading technology and service partner to the aquaculture industry worldwide. Listed on Oslo Total turnover in 1.384 employees Companies in 11 Technology leader stock exchange 2023: countries through 40 years since 2006 NOK 3.4 billion Pioneering a better futu

  46. Slide 46: Our presence

    Our presence Present in all markets with offices in:  Norway  Denmark  Scotland  Lithuania  Spain  Greece  Turkey  Chile  Canada  China  Australia Pioneering a better future

  47. Slide 47: Balance sheet

    Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION Note 2024 2023 2023 (NOK 1 000) 30.6. 30.6. 31.12. Intangible fixed assets 1,3 1 195 130 1 050 021 1 157 266 Deferred tax assets 68 846 32 649 72 464 Tangible fixed assets 650 683 655 727 671 833 Long-term financial assets 2 347 73

  48. Slide 48: Cash flow statement

    Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2024 Q2 2023 Q2 2024 YTD 2023 YTD 2023 Total Profit before taxes 33 726 28 405 43 475 27 214 -29 309 Taxes paid -4 266 -8 206 -7 495 -12 303 -12 399 Share of profit(-)/loss(+) from assoc

  49. Slide 49: Largest shareholders

    Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 18 703 105 51,0 % EGERSUND GROUP AS NOR Last 12 months 6 600 192 18,0 % Israel Corporation Ltd ISR Share price Trading volume 2 203 280 6,0 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 100 16 000 0

  50. Slide 50: Our Values

    Our Values - We CARE for our industry and the communities we are localized Customer focus Aquaculture knowledge Reliability Enthusiasm Pioneering a better future

  51. Slide 51: Pioneering a better future

    Pioneering a better future AKVAcrRour

AKVA group — Q2 2024 Earnings Presentation on 6ix