Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2020 Earnings Presentation
43 slides from Akva Group Asa's earnings presentation, Aug 14, 2020
Slide 1: Q2 2020 Presentation
Q2 2020 Presentation Oslo – 14 August 2020 Knut Nesse, CEO A. Pierre Hatjoullis, Group Controller
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A 2
Slide 3: Highlights Q2 2020 – by CEO Knut Nesse
Highlights Q2 2020 – by CEO Knut Nesse 3
Slide 4: Order intake development
Order intake development Order intake • Order intake of 994 MNOK 1 107 +31% 997 44 994 46 21 • 100 MNOK contract for delivery of 300 760 778 825 709 TubenetTM in Norway 218 38 33 19 13 10 236 50 215 77 • Main increase in order intake is related to 448 38 ASA Nordic and Land Based 34 762 732 695 686
Slide 5: Revenue development
Revenue development Revenue • Record high revenue from Americas in Q2, with +8% positive development in Chile and North America 23 • Increased revenue in Caged Based in Nordic versus Q2 2019 852 862 775 771 752 • Low revenue in Land Based due to early phase of new 637 726 655 generation of projects
Slide 6: EBITDA development
EBITDA development EBITDA -8% • EBITDA of 93 MNOK in the quarter 115 101 97 0 93 86 • Europe & Middle East have improved EBITDA 71 compared to last year 57 115 97 101 86 93 • The Egersund Net companies with solid and improved 71 57 margins compared to same period last year • Negative margins in the
Slide 7: High order backlog
High order backlog Order backlog • Order backlog at end of June of 1.8 BNOK +13% 1 783 1 694 1 650 • Strong momentum for Egersund Net 1 611 1 572 1 524 1 356 771 • Order backlog in Americas region remains high 629 611 569 674 605 1 085 448 • Increased backlog for Land Based segment 359 • TubenetTM s
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +54% +50% -12% 0,23 0,30 0,19 0,35 1 650 1 614 198 179 1,80 1,74 1,67 1 216 1,43 1 047 119 111 Q2 17 Q2 18 Q2 19 Q2 20 Q2 17 Q2 18 Q2 19 Q2 20 Q2 17 Q2 18 Q2 19 Q2 20 YTD YTD YTD Amortization from intangible assets related to acquisitions 8 In August 2018, nu
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 852 862 798 771 752 726 637 655 61% 65% 63% 598 70% 74% 70% 69% 633 474 76% 603 541 506 392 428 22% 20% 147 22% 139 155 144 190 24% 20% 22% 177 145 17% 17% 136 106 132 17% 13% 18% 42 74 59 76 83 73 6% 9% 7% 10%
Slide 11: Development in OPEX based revenue
Development in OPEX based revenue 300 33,8% 35 32,3% 31,2% 30,1% • Egersund Net contributing 93 MNOK in the quarter 29,3% 28,7% 250 28,2% 27,5% 30 25 • Stable development for the rental business (Scotland and 200 94 112 93 90 104 Norway) in 2020 89 20 31 82 150 15 • AKVA group Software with stable r
Slide 12: Revenue by product group and species
Revenue by product group and species By product groups – Q2 2020 By species – Q2 2020 852 862 852 862 798 6 752 1 44 771 752 65 16 56 798 771 56 23 32 726 118 0 39 0 28 1 17 726 66 68 655 62 44 95 655 13 39 1 92 78 74 35 37 Software 637 1 16 225 637 39 40 129 Non seafood 47 42 LBT S&AS 1 189 218 109
Slide 13: Q2 – Operational Highlights
Q2 – Operational Highlights • TubenetTM contract of 100 MNOK signed in April 2020 – delivery started in Q2 • High activity within the Egersund Net business • Cage based business in Chile with high activity despite the uncertainty of the COVID-19 outbreak • Export out of Norway with solid order intak
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 14
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: 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 18: Financial performance Q2 2020 – by Group Controller
Financial performance Q2 2020 – by Group Controller Andreas Pierre Hatjoullis 18
Slide 19: Q2 2020 – Financial highlights
Q2 2020 – Financial highlights Revenue 852 862 • Last twelve months order intake and revenue now at 798 3,251 MNOK and 3,041 MNOK respectively 752 771 726 655 • Strong growth in revenues from Chile in the quarter versus 589 627 637 last year 537 557 510 484 • Egersund Net with increase in revenues i
Slide 20: Q2 2020 – Financial highlights
Q2 2020 – Financial highlights EBITDA (MNOK) 150 • Europe & Middle East improve margins in Q2 115 97 86 101 93 100 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 % compared to -50 -40 last year Q1 Q2 Q3 Q4 2017 20
Slide 21: Cage Based Technology
Cage Based Technology Nordic Revenue and EBITDA % 800 775 16 • Results in CBT Nordic up compared to Q2 2019 664 72 14,3% mainly due to higher EBITDA in AKVA group ASA and 700 14 12,8% AKVA Marine Service 58 171 600 12 • An increase in order backlog from Q4 2019 and Q2 124 2019 500 10 • Egersund Net
Slide 22: Cage Based Technology
Cage Based Technology Americas Revenue and EBITDA % • Revenues significantly higher than 2019 but with a slight 800 775 16 decrease in EBITDA compared to last year 14,3% 664 72 700 12,8% 14 • Chile with reduced EBITDA margin in Q2 2020 compared 58 to a solid Q2 last year 600 171 12 124 • Newfoundlan
Slide 23: Land Based Technology
Land Based Technology Revenue and EBITDA % • Strong order backlog of 771 MNOK at the end 100 95 12,2% 15 of Q2 2020 despite cancellation of contracts 1 90 8 10 • The low activity and negative margins due to 80 5 several incidents 70 0 – COVID-19; postponement and cancellation of contracts – 70 0 mos
Slide 24: Software
Software Revenue and EBITDA % 45 25 • Renewal of Fishtalk has increased subscription sales in Q2 40 39 19,5% 35 20 • Digital solutions integrated part of our product offerings 30 23 15 25 • Last year revenue and EBITDA included 23 MNOK and 0.3 MNOK respectively, from the divested 20 9,6% 16 software
Slide 25: Financials – Detailed P&L
Financials – Detailed P&L P&L 2020 2019 2020 2019 2019 (MNOK) Q2 Q2 YTD YTD Total OPERATING REVENUES 862 798 1 614 1 650 3 077 Operating costs ex depreciations 769 697 1 435 1 453 2 805 • Investment in associated companies accounted EBITDA 93 101 179 198 272 Depreciation 17 21 33 45 64 for by equity
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 12,8% 12,9% 389 368 450 14,8% 15,0% 16 400 500 12,1% 400 14 350 450 350 400 287 12 300 10 300 273 350 9,3% 10 250 9,0% 300 250 565 250 535 5
Slide 27: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Revenue % CAPEX breakdown 2020 Rental 90 000 8,4% 9 Intangible 4 432 80 000 8 6,8% 6,7% 70 000 5,8% 7 60 000 6 23 187 50 000 4,3% 5 4,2% 4,0% 4,1% 40 000 4 3,0% 64 893 30 000 2,6% 3 20 000 42 852 42 225 43 888 2 37 921 35 556 30 325 35 214 25 517 23 913 Ordinary 10 000 1
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) 1 160 1 300 3,85 Net interest bearing debt 31.03.2020 779 513 3,5 3,6 1 202 1 200 3,50 EBITDA -93 087 1 086 1 056 3,3 1 080 1 100 Income taxes paid 1 569 1 000 977
Slide 29: Amended NIBD/EBITDA covenant
Amended NIBD/EBITDA covenant An amended agreement is settled in Q2 2020 with Danske Bank in regards of the impact of IFRS 16 on the net interest-bearing debt/12 months EBITDA covenant The lease liabilities due to the introduction of IFRS 16 is to be included in interest-bearing debt The covena
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 1 100 1 055 1 037 1 032 50 0,75 0,8 1 017 991 0,74 1 000 0,68 39,8% 0,65 0,7 900 38,2% 39,3% 38,4% 37,9% 0,62 0,64 37,8% 37,3% 40 0,60 35,9% 0,57 0,6 800 700 0,49 30 0,5 26,8% 600 50
Slide 31: Group financial profile, continued
Group financial profile, continued ROCE ROACE 13,7% 14,5% 11,9% 9,8% 10,1% 7,9% 7,9% 8,5% 9,1% 8,6% 9,0% 7,0% 3,6% 3,3% 2,6% 2,2% 2,7% 2,2% 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 Exceptional items impacting Q4 2019 EBIT with effect on subsequent R
Slide 32: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2020 2019 2020 2019 2019 (NOK 1 000) Q2 Q2 YTD YTD Total Net cash flow from operations 78 724 74 090 155 208 153 039 180 151 Net cash flow from change in w orking capital 166 400 -189 702 19 281 -132 556 30 617 Net cash flow from oper
Slide 33: Balance sheet
Balance sheet BALANCE SHEET 2020 2019 2019 (MNOK) 30.06 30.06 31.12 ASSETS 3 282 3 260 3 034 Intangible non-current assets 1 072 1 080 1 028 Tangible non-current assets 372 324 364 Right-of-Use Asset 405 430 417 Financial non-current assets 97 68 75 Inventory 508 434 514 Receivables 612 719 476 Cash
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 3 900 000 11,7 % WHEATSHEAF INVESTMENTS LIMITED GBP 1 192 893 3,6 % SIX SIS AG Nomi nee CHE Last 12 months 959 058 2,9 % VERDIPAPIRFONDET NORDEA KAPITAL
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 1 431 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 1 572 994 997 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 1 085 569 639 10 77 215 629 537 448 620 449 589 51 304 546 557 430 359 103
Slide 41: Outlook – AKVA group
Outlook – AKVA group • Order backlog remains high • Service station for nets being built in northern Norway (with partner), plans for additional station underway • Signed non-binding Term Sheet with the Norwegian company AquaCon AS for a potential supply of equipment, engineering and design to a new
Slide 42: Customer focus
CUSTOMER FOCUS AQUACULTURE X09 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 43: AKVAcRour
AKVAcRour