Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2017 Earnings Presentation
38 slides from Akva Group Asa's earnings presentation, Aug 16, 2017
Slide 1: Q2 2017 Presentation
Q2 2017 Presentation Trondheim – August 16th, 2017 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO Your Aquaculture Technology and Service Partner
Slide 2: Agenda
Agenda 1 Highlights 2 Financial performance 3 Outlook 4 Q&A Your Aquaculture Technology and Service Partner
Slide 3: Highlights Q2 2017 - by CEO Hallvard Muri
Highlights Q2 2017 - by CEO Hallvard Muri Your Aquaculture Technology and Service Partner 3
Slide 4: Strong performance in a good market
Strong performance in a good market Order Intake - Overall increase in order intake of 46% compared to Q2 2016 +46% 778 - Activity in the Nordic region remains strong, up 57% vs Q2 2016 48 SW - Good momentum in both Chile and North America more than 589 doubling order intake from Q2 2016 533 561 51
Slide 5: Delivering on a solid order backlog
Delivering on a solid order backlog Revenue • 32% increase in operating revenue vs Q2 2016: +32% • Cage Based segment Nordic region continue to be main driver, up 43% vs Q2 2016 • Positive market development in Chile last quarters start flowing trough 510 537 • Aquatec Solutions main driver for Land
Slide 6: Positive development in EBITDA margin
Positive development in EBITDA margin EBITDA • EBITDA margin of 12,1% vs 10,4% in Q2 2016: +51% • Operational leverage start giving effect • Strong quarter for ASA Nordic and Helgeland Plast • Solid contribution from Sperre and AKVA Marine Services 65 54 • Americas (AKVA group Chile, North America a
Slide 7: Continued strong growth in order backlog
Continued strong growth in order backlog Order Backlog Second quarter 2017 – Highlights +60% 1 318 • Strong sales and order intake 1 077 998 • Order backlog end of June of 1.3 BNOK 885 620 822 430 697 412 • EBITDA of 65 MNOK in the quarter 643 649 437 417 264 283 286 647 698 586 414 468 357 385 385
Slide 8: Where we deliver
Where we deliver AKVA group’s geographical regions Income distribution Q2 2017 (16) 10% (14%) 11% (9%) 79% (77%) Nordic Americas Nordic Export Export AKVA group Americas Agents and Distributors Your Aquaculture Technology and Service Partner
Slide 9: Development in OPEX based revenue
Development in OPEX based revenue OPEX based vs CAPEX based revenue Comments 160 35,0 % • AKVA Marine Services is growing and competitiveness is strengthening 30,6 % 140 by introducing own manufactured net washers from Sperre 27,9 % 28,3 % 30,0 % 27,1 % 26,0 % 120 24,7 % • We have now introduced Mar
Slide 10: Revenue by product groups and species
Revenue by product groups and species By product groups – Q2 2017 By species – Q2 2017 Software Non Seafood S&AS Land Based 0,2% Other species 10,0% (0,7%) (9,4%) Land Based Tech 5,1% 20,9% 7,6% (13,9)% (7,7%) (22,9%) 52,0% 19,3% (52,0%) Cage Based Tech (16,7%) S&AS Cage Based 84,9% (76,7%) Salmon
Slide 11: Q2 – Operational Highlights
Q2 – Operational Highlights • Management are strengthened and a new organization structure is implemented – focusing on our «Ability to Win» and «Will to Win» by developing and providing efficient solutions to our customers (A2W and W2W) • A strategy process is initiated and an improvement program w
Slide 12: Atlantis Subsea Farming: risk management and development licenses
1. Atlantis Subsea Farming AS applied for 6 development licenses the 29th of January 2016 2. The Norwegian Directorate of Fisheries have informed the company that the company’s concept has progressed another step further in the process to get awarded development licenses. 3. The Directorate will go
Slide 13: Financial performance Q2 2017 – by CFO Simon Nyquist Martinsen
Financial performance Q2 2017 – by CFO Simon Nyquist Martinsen Your Aquaculture Technology and Service Partner 13
Slide 14: Q2 2017 - Financial highlights
Q2 2017 - Financial highlights Revenue 537 • 32% growth, strong contributions from Chile, Nordic and 510 the Land Based segment 449 393 402 408 355 354 • Last twelve months order intake and sales now at 2,346 310 325 301 330 305 344 MNOK and 1,850 MNOK respectively • The order book has grown to 1,31
Slide 15: Q2 2017 - Financial highlights, continued
Q2 2017 - Financial highlights, continued EBITDA (MNOK) 80 65 • Strong development in the Nordic region, good 60 40 54 41 43 41 38 contribution from Helgeland Plast, AKVA Marine Services 40 32 27 34 27 24 24 and Sperre 20 13 0 • Last twelve months EBITDA now at 181 MNOK up from 159 Q1 Q2 Q3 Q4 MNOK
Slide 16: Cage Based Technologies
Cage Based Technologies Nordic ● Revenue YoY up 43% in total for the region CBT (Revenue and EBITDA%) ● All entities contributing positively YoY 400 383 13,9% 14 ● The Farming Services operations is increasing and strengthening the Group delivering an EBITDA of 7.3 MNOK 350 53 in the quarter 12 280
Slide 17: Land Based Technologies
Land Based Technologies LBT (Revenue and EBITDA%) 120 113 10 ● A very solid order intake at 303 MNOK in the 8,7% quarter, including significant orders to Tytlandsvik 1 and Midt-Norsk Havbruk 96 100 1 ● Good underlying performance in Aquatec Solutions 80 ● Cost reductions in AKVA group Denmark will h
Slide 18: Software
Software SW (Revenue and EBITDA%) ● Positive development in order intake 45 16,9% 20 and sales in AKVA group Software and 41 Wise 40 15,5% 1 4 35 32 10 ● Several new customers and contracts 1 secured for the Fish Talk modules in Q2 30 3 25 0 ● Improved margins compared to Q1 20 2017 both in Wise and
Slide 19: Financials – Detailed P & L
Financials – Detailed P & L (MNOK) 2017 2016 2017 2016 2016 Q2 Q2 YTD YTD Total Order backlog 1 317,7 822,0 1 317,7 822,0 997,7 • Whereof Land Based is 620 MNOK Order intake 778,5 553,2 1 367,4 973,9 1 952,0 P&L • Increased depreciation mainly due OPERATING REVENUES 537,4 408,2 1 047,4 800,7 1 603,1
Slide 20: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 150 145 11 150 10 127 134 134 10,6% 127 131 10 9 126 124 109 118 9 9,4% 115 9,6% 8 9,1% 8,8% 9,3% 106 107 7,5% 8,8% 8 102 7,7% 98 7 100 6,8% 6,7% 100 7,1% 7,2% 7 85 5,5% 6 6 256 64 5,7% 5 226 230 4,3% 5 5
Slide 21: CAPEX
CAPEX Capex (TNOK) and capex / sales (%) 70 000 20% CAPEX breakdown 2017 YTD (TNOK) 18% 60 000 57 368 16% 50 000 14% 5 648 12% 67 869 40 000 32 853 11% 10% 31 666 30 000 10% 15 517 24 407 24 728 8% 23 114 20 000 7% 6% 16 037 17 067 15 871 6% 6% 6% 4% 4% 4% 10 000 4% 2% Ordinary Rental Intangible (R&
Slide 22: Net debt/EBITDA of 1.6
Net debt/EBITDA of 1.6 Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) Net debt 31.03.2017 310 056 400 2,0 2,10 EBITDA -64 965 Income taxes paid -1 059 298 310 1,75 Net interest paid 3 530 300 1,6 1,5 1,4 Capex 31 666 213 212 1,40 Acquisitions / Divestments - 200 172 136 1,05 Long-term
Slide 23: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 0,70 500 41,5% 473 45 0,7 460 0,63 443 428 435 437 435 446 450 417 40 0,6 400 38,0% 38,9% 35 39,6% 38,9% 37,1% 0,49 0,49 350 29,4% 0,5 31,6% 30 31,3% 300 0,37 0,4 25 250 0,32 20 0,3 200 15 0,22 150 0,
Slide 24: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 17,8% 18,6% 16,4% 15,2% 13,9% 14,7% 14,0% 15,0% 16,1% 15,1% 12,4% 13,2% 12,8% 11,2% 11,4% 10,9% 9,8% 9,6% 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Your Aquaculture Technology and Service P
Slide 25: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Note 2017 2016 2017 2016 2016 (NOK 1 000) Q2 Q2 YTD YTD Total Net cash flow from operations 62 059 40 014 105 107 60 442 105 596 Net cash flow from change in w orking capital -7 089 -30 006 -81 827 35 759 106 050 Net cash flow from op
Slide 26: Balance sheet
Balance sheet BALANCE SHEET 2017 2016 2016 (MNOK) 30.06 30.06 31.12 ASSETS 1 606 1 180 1 376 Intangible non-current assets 583 417 575 Tangible non-current assets 197 128 151 Financial non-current assets 10 5 6 Inventory 211 166 186 Receivables 491 313 292 Cash and cash equivalents 113 152 166 LIABI
Slide 27: Dividend and dividend policy
Dividend and dividend policy Dividend Policy • 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 Board will take
Slide 28: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 13 203 105 51,1 % EGERSUND GROUP AS NOR Last 12 months 3 900 000 15,1 % WHEATSHEAF INVESTMENT GBR Share price Trading volume VERDIPAPIRFONDET ALFRED BERG NOR 1 058 579 4,1 % 100 70 000 000 470
Slide 29: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri Your Aquaculture Technology and Service Partner 29
Slide 30: AKVA group in brief
AKVA group in brief • Leading technology and service partner to the global aquaculture industry • Global presence and subsidiary in 9 countries • Deliveries in over 65 countries during the last 40 years • 882 employees • 2016 revenues of 1 603 MNOK • Listed on Oslo Stock Exchange since 2006 • Market
Slide 31: Cage Based Technology
Cage Based Technology Your Aquaculture Technology and Service Partner
Slide 32: Land Based Technology
Land Based Technology Your Aquaculture Technology and Service Partner
Slide 33: CAPEX Based Revenue
CAPEX Based Revenue Your Aquaculture Technology and Service Partner
Slide 34: OPEX Based Revenue / CAPEX Based Revenue
OPEX Based Revenue CAPEX Based Revenue SOFTWARE Fishtalk AKVAconnect Support MARINE SERVICES & Rentals Marine Services After Sales Service AFTER SALES SERVICE Your Aquaculture Technology and Service Partner
Slide 35: Order backlog and inflow, 2014 through 2017
Order backlog and inflow, 2014 through 2017 Order backlog Order intake 1 318 778 1 077 998 589 304 620 561 885 533 822 103 504 72 430 460 412 441 417 697 643 417 649 368 101 89 350 547 327 348 250 214 57 437 504 36 452 93 283 478 494 286 264 243 6 80 63 75 118 349 93 486 201 489 106 12 475 647 698 5
Slide 36: Outlook – AKVA group
Outlook – AKVA group ● Continued good outlook for most markets ● Strengthening the organization and focusing on improving competitive position across all markets ● Increased focus on supply chain, sourcing and manufacturing efficiency ● Land Based focus on post smolt segment, high quote bank ● Expor
Slide 37: Q & A
Q&A Your Aquaculture Technology and Service Partner 37
Slide 38: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner