Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2008 Earnings Presentation
21 slides from Akva Group Asa's earnings presentation, May 6, 2008
Slide 1: 1Q 2008 presentation
The global leader in aquaculture technology 1Q 2008 presentation 06 May 2008 Knut Molaug, CEO Rolf Andersen, CFO Pro-forma ● Please note that unless otherwise stated all comments in this presentation are based on pro-forma numbers as if the merger between AKVAsmart, Helgeland Plast and the Wavemaste
Slide 2: Agenda; AKVA group in brief
Agenda Background & highlights 1Q 2008 Financial review Outlook Q&A 3 AKVA group in brief Software systems Cage systems AKVA group facts and services • The leading aquaculture technology supplier • The only player with global presence • The largest supplier to the aquaculture industry • High growth
Slide 3: 1Q highlights
1Q highlights ● Operating revenues in 1Q were 207 MNOK and the period’s EBITDA was 16.3 MNOK ● The order backlog was 373 MNOK at the end of 1Q indicating a stable market situation compared to last year ● The general outlook for the next 6 months in 2008 remains steady, however the challenging fish h
Slide 4: 1Q Financials – P&L
1Q Financials – P&L P&L 2007 (Pro-forma) 1Q 1Q Year Year (MNOK) 2008 2007 2007 2006 Operating revenues 207.3 215.2 932.0 703.8 Operating costs excl. depreciation -191.0 -194.5 -841.3 -619.4 EBITDA 16.3 20.7 90.7 84.4 Depreciation & Amortisation -6.0 -5.1 -24.2 -21.1 EBIT 10.3 15.5 66.4 63.3 Net fina
Slide 5: Business areas - OPTECH and INTECH
Business areas - OPTECH OPTECH (MNOK) Pro-forma 98 93 101 110 94 107 93 101 Revenues 100 84 75 50 25 0 2008 2007 1Q 1Q 2Q 2Q 3Q 3Q 4Q4Q 2006 20 16,2 15 11,5 12,1 10,7 10,7 10,3 9 9,4 10 5,8 EBITDA 5 0 ● 1Q revenues decreased slightly compared to the year before. However, adjusted for the sale of the
Slide 6: Business, market and geographic segments
Business segments YTD 2008 Revenues YTD 2008 Profits OPTECH OPTECH 36 % INTECH 45 % 55 % INTECH 64 % 11 Market segments Geographic segments Iceland 7% • Norway and Chile – dominating segments Other 6% Norway 46 % Medit. 4% UK 5% Chile 25 % Canada 8% AKVA group revenues within other species 100 CAGR
Slide 7: Balance sheet
Balance sheet Balance sheet (legal) 1Q 31.12 (MNOK) 2008 2007 Intangible fixed assets 228.1 224.8 Tangible fixed assets 34.8 34.0 Long term financial assets 2.4 2.1 Fixed assets 265.3 260.9 Stock 135.8 118.7 Receivables 186.8 207.1 Cash and bank deposits 103.5 98.0 Current assets 426.2 423.9 Total a
Slide 8: Strong financial position; Cash flow statement
Strong financial position Equity (%) ● Equity: 70 % Strong equity position 56 % 56 % 60 % 47 % 50 % 49 % 50 % 50 % 40 % 37 % 30 % 30 % 20 % 10 % 0% 2004 2005 2006 1Q07 2Q07 3Q07 4Q07 1Q08 Cash balance (MNOK) ● Cash Position: 200 Strongg cash pposition 175 150 142 145 128 136 Available cash 142
Slide 9: Order backlog and inflow
Order backlog and inflow Order backlog and inflow per quarter (MNOK) Backlog Inflow 375 382 400 373 350 326 291 305 300 281 241 250 211 211 184 187 198 200 145 169 150 100 50 na na. na. 0 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 ● Order backlog is up 28% compared to 1Q 2007 ● T
Slide 10: Outlook
Outlook ● Favourable market conditions in Norway The general market outlook towards the salmon farming industry in Norway remains good at the moment. ● Uncertainties in Chile due to challenging health situation Due to the escalating challenging fish health situation in the Chilean market, the ma
Slide 11: Appendix
Background & highlights 4Q 2007 Financial review Outlook Q&A 21 Appendix 22 11
Slide 12: Vision statement and strategy
23 Vision statement and strategy “The global leader in aquaculture technology” technology ● Remain a top-tier growth company ● Strengthen the profitability of the core business ● Lead the technological development ● Attract, motivate and retain competent employees ● Lead the consolidation of the glo
Slide 13: We CARE
25 We CARE Customer in focus our values: Aquaculture CARE Enthusiasm knowledge Reliability 26 and honesty 13
Slide 14: Our culture
Our culture ● We live within our means Historically our primary market has been cyclical. We have to be y g we do. flexible and cost conscious in everything ● We are down-to-earth and informal Our industry is not known as flashy or show-off industry. It is literally down to earth. We want this r
Slide 15: World fisheries and aquaculture
World fisheries and aquaculture 160 000 140 000 120 000 100 000 Million tons 80 000 60 000 40 000 Aquaculture China World aquaculure (excl. China) 20 000 Capture China World capture (excl. China) 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Source: FAO 29 Global
Slide 16: Becoming global
31 Becoming global Asia Latin America Mediterranean 32 16
Slide 17: Product portfolio strategy
33 Product portfolio strategy Production Planning and Optimising Software through g the value chain S ft Software Process Control Software Other products Machines & – Sensors the biological Structures & production Infrastruc- ture Value Genetic Hatching On- Added Sales & Selection & Nursery growing
Slide 18: Global macro trends
Global macro trends Intensification, “off-shore”* and enclosed: knowledge based ● Market driven pressure to expand Market ● Shortage of available land ● Shortage of available sea space ● Intensification chnology ● “Off-shore” farms* ● Recirculation ((enclosed)) Tec ● Knowledge based ● Greater capita
Slide 19: Growth ambitions; Legal accounts - P&L
Growth ambitions ● Organic growth: Salmon industry expected to increase by more than 60% by 2015 Ambition that other species will grow to 50% of the revenue volume in 2015. ● Acquisitive growth: Completion of the product portfolio Entry into new market areas & regions Market driven acquisi
Slide 20: Legal accounts – Business segments
Legal accounts – Business segments FORRETNINGSOMRÅDER / BUSINESS SEGMENTS 2008 2007 2007 (NOK 1 000) 1Q 1Q Total FARM OPERATION TECHNOLOGY (OPTECH) DRIFTSINNTEKTER / OPERATING REVENUES 92 744 43 146 343 302 Driftskostnader eks. avskrivninger / Operating costs ex depreciations 86 922 37 084 307 673 D
Slide 21: AKVA group – global presence
AKVA group – global presence Norway Iceland Scotland Denmark Canada USA Canada S. Korea Turkey AKVA office AKVA representation Thailand Vietnam Chile All major industry players as customers 41 21