Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2020 Earnings Presentation
43 slides from Akva Group Asa's earnings presentation, May 8, 2020
Slide 1: Q1 2020 Presentation
Q1 2020 Presentation Webcast – 8 May 2020 Knut Nesse, CEO Andreas Pierre Hatjoullis, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q1 2020 – by CEO Knut Nesse
Highlights Q1 2020 – by CEO Knut Nesse
Slide 4: Order intake development
Order intake development Order intake • Order intake of 709 MNOK -36% 1 425 • 100 MNOK contract for delivery of Tube Net in Norway not included in order intake 1 107 600 997 44 778 46 • Strong quarter for Europe & Middle East, especially 300 760 33 within export from Norway 218 38 50 19 709 77 215 1
Slide 5: Revenue development
Revenue development Revenue • Both Scotland and export from Norway have had a -12% very good quarter 29 • Lower revenue in Caged Based in Nordic versus Q1 2019 823 798 771 726 752 • Low revenue in Land Based due to early phase of new 627 637 655 generation of projects and delayed projects • The soft
Slide 6: EBITDA development
EBITDA development EBITDA -11% • EBITDA of 86 MNOK in the quarter 115 97 101 • Europe & Middle East have significantly improved EBITDA margins 4 86 compared to last year – Scotland and export from Norway as the 71 main contributors 57 52 115 101 • The Egersund Net companies have improved margins com
Slide 7: High order backlog
High order backlog Order backlog +2% – Order backlog at end of March of 1.7 BNOK 2 294 600 – Strong momentum for Egersund Net 1 611 1 572 1 650 1 524 – Order backlog in Americas region remains high 1 274 1 356 674 629 605 1 085 611 569 448 – Tube Net sale in Norway in April valued at 100 449 359 MNO
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +47% +59% +4% 0,10 0,15 0,11 0,15 858 97 752 86 0,94 0,87 589 510 54 59 0,60 0,59 Q1 17 Q1 18 Q1 19 Q1 20 Q1 17 Q1 18 Q1 19 Q1 20 Q1 17 Q1 18 Q1 19 Q1 20 YTD YTD YTD Amortization from intangible assets related to acquisitions In August 2018, number of shares
Slide 9: Our presence
Our presence AKVA group Agents and distributors
Slide 10: Revenue in geographical regions
Revenue in geographical regions AKVA group’s geographical regions – absolute and relative 852 798 771 752 726 637 655 627 66% 61% 65% 64% 633 70% 74% 70% 483 76% 603 541 506 412 392 428 22% 18% 138 20% 22% 139 155 144 24% 20% 125 177 145 17% 17% 136 132 14% 17% 13% 18% 90 106 74 76 83 9% 7% 10% 42 5
Slide 11: Development in OPEX based revenue
Development in OPEX based revenue 300 33,8% 35 • Egersund Net contributing 89 MNOK in the quarter 32,3% 31,2% 30,1% 29,3% 28,2% 27,5% 30 250 • Stable development for the rental business (Scotland and 25 Norway) in 2020 200 22,5% 112 94 90 104 89 20 150 31 82 • AKVA group Software with stable revenue
Slide 12: Revenue by product group and species
Revenue by product group and species By product groups – Q1 2020 By species – Q1 2020 852 852 798 56 798 771 1 44 771 752 752 726 0 39 726 23 66 655 118 0 28 1 17 13 68 39 44 95 92 655 78 37 32 637 1 637 74 35 Software 627 1 16 627 20 42 1 40 129 189 Non seafood 55 47 42 LBT S&AS 1 218 212 109 204 4
Slide 13: Q1 – Operational Highlights
Q1 – Operational Highlights • Next generation Tube Net solution ready for market, contract of 100 MNOK signed in April 2020 • High activity within the Net service business • Cage based business in Chile continued on same high level as for 2019 • Export out of Norway with solid order intake and margi
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
Slide 15: Tube Net
Tube Net • 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 concer
Slide 16: Separate focus on full grow out RAS facilities
Separate focus on full grow out RAS facilities • AKVA as strategic partner in NAP • Potential equity stake to secure partnership and successful execution • Learning and developing by a close follow-up on all technical, operational and biological performance measures • Final financing is still pendin
Slide 17: Covid-19
Covid-19 The Covid-19 virus together with a total collapse of the global oil price 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 cancell
Slide 18: Financial performance Q1 2020 – by CFO Andreas Pierre Hatjoullis
Financial performance Q1 2020 – by CFO Andreas Pierre Hatjoullis
Slide 19: Q1 2020 – Financial highlights
Q1 2020 – Financial highlights • Last twelve months order intake and revenue now at Revenue 852 3,017 MNOK and 2,977 MNOK respectively 798 752 771 726 • Nordic and Chile with decline in revenue compared to last years Q1 637 655 627 • Strong growth in export out of Norway and Scotland in the quarter
Slide 20: Q1 2020 – Financial highlights
Q1 2020 – Financial highlights EBITDA (MNOK) 150 • Europe & Middle East with solid performance in Q1 115 97 86 101 100 54 59 65 52 61 71 60 57 50 • Margins in Americas are slightly down in the period 0 • AKVA group ASA Nordic delivering improved EBITDA % -50 -40 Q1 Q2 Q3 Q4 • Egersund Net contributi
Slide 21: Cage Based Technology
Cage Based Technology Nordic Revenue and EBITDA % 800 14 • Reduction in results in CBT Nordic mainly due to 12,3% lower revenue in all entities in Q1 2020 689 700 657 12 11,1% 73 • An increase in order backlog from Q4 2019 and 600 131 123 10 stable compared to Q1 2019 500 122 8 • Egersund Net with a
Slide 22: Cage Based Technology
Cage Based Technology Americas Revenue and EBITDA % • Revenues almost on same level as 2019. A slight decrease 800 14 in EBITDA compared to last year 689 12,3% 700 657 12 11,1% • Stabilized EBITDA margin in Chile, Q1 2020 on same level 73 as Q1 last year 600 131 123 10 • Newfoundland Aqua Service is
Slide 23: Land Based Technology
Land Based Technology Revenue and EBITDA % 119 • Strong order backlog of 605 MNOK at the end 120 14 0 of Q1 2020 despite cancellation of order for 110 RAS in Chile from Cooke and deliveries to 25 10,1% 12 Nordic Aqua Partners in China 100 90 10 • Decrease in revenue and margins due to 79 80 0 8 post
Slide 24: Software
Software Revenue and EBITDA % 45 44 70 • Renewal of Fishtalk starting to materialize in increased sales 40 60 35 • Leads and pipeline for Precision feeding software 50 (Observe) is increasing 30 29 25 40 • Last year revenue and EBITDA included 29 MNOK and 4 MNOK respectively, from the divested 20 17
Slide 25: Financials – Detailed P&L
Financials – Detailed P&L P&L 2020 2019 2019 (MNOK) Q1 Q1 Total OPERATING REVENUES 752 852 3 077 Operating costs ex depreciations 666 755 2 805 • Investment in subsidiaries accounted for by EBITDA 86 97 272 equity method YTD Q1 classified as other Depreciation 17 23 64 Depreciation lease assets 21 1
Slide 26: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 424 496 600 500 18 450 385 406 14,2% 15 16,5% 465 447 12,6% 550 450 15,0% 16 400 12,8% 12,9% 389 14,8% 500 307 400 14 350 10,8% 450 307 350 400 10,8% 287 12 300 10 350 300 9,3% 10 250 300 250 565 250 535
Slide 27: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Revenue % CAPEX breakdown 2020 90 000 14,2% 15 Rental 80 000 Intangible 6 860 70 000 60 000 10 8,4% 50 000 6,8% 5,8% 6,7% 40 000 78 936 64 893 17 906 30 000 4,3% 4,2% 4,0% 5 5 559 42 852 3,0% 43 888 Ordinary 20 000 2,6% 42 225 35 556 30 325 10 000 25 517 23 913 16 881 0
Slide 28: Net interest bearing debt/EBITDA of 3,0
Net interest bearing debt/EBITDA of 3,0 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 800 780 3,15 Net interest bearing debt 31.12.2019 631 567 726 EBITDA -86 000 700 662 3,0 2,80 632 2,6 2,5 632 Income taxes paid 3 389 605 600 2,2 2,45 Net interest
Slide 29: 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 1 100 1 055 1 037 50 0,75 0,8 1 017 991 0,74 1 000 0,68 39,8% 0,7 900 38,2% 39,3% 38,4% 37,9% 0,63 0,62 0,64 37,8% 37,3% 40 0,60 800 0,57 0,6 700 0,49 28,0% 30 0,5 26,8% 600 491 504
Slide 30: Group financial profile, continued
Group financial profile, continued ROCE ROACE 16,4% 16,8% 13,7% 14,5% 11,9% 9,8% 9,1% 9,0% 10,1% 7,9% 7,9% 8,5% 8,6% 7,0% 3,6% 2,6% 3,3% 2,7% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 Exceptional items impacting Q4 ROCE ROACE is calculated with the
Slide 31: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2020 2019 2019 (NOK 1 000) Q1 Q1 Total Net cash flow from operations 76 484 78 950 180 153 Net cash flow from change in w orking capital -147 119 57 145 30 616 Net cash flow from operational activities -70 635 136 095 210 769 Net cash
Slide 32: Balance sheet
Balance sheet BALANCE SHEET 2020 2019 2019 (MNOK) 31.03 31.03 31.12 ASSETS 3 327 3 196 3 034 Intangible non-current assets 1 094 1 085 1 028 Tangible non-current assets 241 336 364 Financial non-current assets 85 74 75 IFRS 16 - RoU Asset 547 443 417 Inventory 573 455 514 Receivables 633 637 476 Cas
Slide 33: 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 34: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 20 703 105 62,1 % EGERSUND GROUP AS WHEATSHEAF INVESTMENTS LIMITED NOR GBP Last 12 months 3 900 000 11,7 % Share price Trading volume 1 192 893 3,6 % SIX SIS AG Nomi nee CHE VERDIPAPIRFONDET N
Slide 35: Outlook – by CEO Knut Nesse
Outlook – by CEO Knut Nesse
Slide 36: 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 1 444 years employees
Slide 37: Solutions
Solutions Cage Based Technology Land Based Technology Software
Slide 38: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 39: Order backlog and inflow, 2017 through 2020
Order backlog and inflow, 2017 through 2020 Order backlog Order intake 2 294 1 425 600 1 106 600 1 611 1 650 1 572 778 997 1 523 1 430 1 380 1 381 1 356 300 55 1 318 1 274 674 778 51 218 629 605 611 1 085 569 709 760 1 077 479 639 10 77 215 629 537 448 589 51 557 620 449 304 546 359 471 430 103 92 4
Slide 40: Outlook – AKVA group
Outlook – AKVA group • Order backlog remains high • Service station for nets to be built in northern Norway (with partner), plans for additional station underway • New generation tube net (preventive sea lice solution) launched, strong interest in the market and contract of 100 MNOK signed in April
Slide 41: AKVA’s input to Norwegian authorities
AKVA’s input to Norwegian authorities Norway should strengthen and evolve our natural comparative advantages in the aftermath of Covid-19 by granting new innovation permits for coastal farming. This will: • Advance Norway's natural advantages and affirm the position as the technological leader of fi
Slide 42: CUSTOMER FOCUS
CUSTOMER FOCUS AQUACULTURE X09 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 43: AKVAcRovur
AKVAcRovur