Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2009 Earnings Presentation
16 slides from Akva Group Asa's earnings presentation, Apr 28, 2009
Slide 1: 1Q 2009 presentation
The global leader in aquaculture technology 1Q 2009 presentation 28 April 2009 Knut Molaug, CEO Rolf Andersen, CFO Agenda Background & highlights 1Q 2009 Financial review Outlook Q&A 2 1
Slide 2: AKVA group in brief
3 AKVA group in brief Software systems Cage systems AKVA group facts and services • The leading aquaculture technology supplier • Strong market position with all main products • The only player with global presence • Strong and experienced management • Growth company in a global growth industry Oper
Slide 3: 1Q highlights
One-stop-shop in aquaculture technology Value chain planning and optimising software 5 Land based farms Cage based farms 1Q highlights ● Operating revenue in 1Q was 152 MNOK which is 26% lower than the same period last year. The period’s EBITDA was –3.3 MNOK primarily negatively affected by reduced
Slide 4: 1Q highlights: cost reductions and market uncertainty
1Q highlights ● Cost reduction programs have been implemented in Chile and Norway to adapt to lower sales volumes. Implemented further redundancies in Chile Implemented further redundancies and temporary redundancies (permittering) in Norway to reduce operational expenses. Main cost effects from
Slide 5: 1Q Financials – P&L
1Q Financials – P&L P&L 2009 1Q 1Q Year (MNOK) 2009 2008 2008 Operating revenues 152.4 207.3 866.5 Operating costs excl. depreciation -155.7 -191.0 -813.8 EBITDA -3.3 16.3 52.7 Depreciation & Amortisation -7.8 -6.0 -29.5 EBIT -11.1 10.3 23.3 Net financial items -1.4 -1.5 -12.5 EBT -12.6 8.8 10.8 Tax
Slide 6: Business areas - OPTECH and INTECH
Business areas - OPTECH OPTECH (MNOK) 125 98 109 105 107 104 101 96,8 93 100 73 75 Revenues 50 25 2008 0 2007 1Q 1Q 2Q 2Q 3Q3Q 4Q 4Q 2006 20 16,4 15 9 9,4 10,7 10,3 8,5 10 5,8 EBITDA 5 -5,7 0 -5 -10 -4,4 ● 1Q revenues decreased by 21% compared to last year. ● 1Q EBITDA level fell significantly compa
Slide 7: Market segments and Balance sheet
Market segments Geographic segments (YTD) Other Iceland • Norway dominating 8% 8% Medit. 2% segment UK 8% Norway • Importance of Chile 50 % reduced N. America Chile 10 % 14 % AKVA group revenues within other species 140 120 100 CAGR 2003-2008 ~70% • Continued growth in a 80 number of regions MNOK. 6
Slide 8: Balance sheet items
Balance sheet items Working Capital (MNOK) ● Working Capital: 220 Improvement has been slower than anticipated 199 200 180 172 168 162 160 140 138 Specific plan to improve working capital further. 120 105 102 109 100 80 60 40 20 0 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Working capital improveme
Slide 9: Financial position and Cash flow statement
Financial position Equity (%) ● Equity: 70 % Sound equity position 60 % 50 % 49 % 50 % 50 % 47 % 47 % 46 % 46 % 45 % 40 % 30 % 20 % 10 % 0% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Cash balance (MNOK) ● Cash Position: 200 Cash Available cash 43 MNOK 175 145 Plan for improvement of 150 128 136 w
Slide 10: Order backlog and inflow
Order backlog and inflow Order backlog and inflow per quarter (MNOK) 400 375 382 373 326 305 281 263 300 253 187 198 189 202 200 200 155 90 100 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 ● Order backlog is reduced by 173 MNOK compared to the same time last year and 63 MNOK compared to 4Q08. The
Slide 11: Outlook
Outlook ● Chilean market in crisis due to the challenging sanitary situation Implemented further cost reduction measures in 1Q and tasks are continuously evaluated. Opportunities in recirculation deliveries over the next years. Low impact from new investments expected in this market for 2009.
Slide 12: Outlook
Outlook ● Norway (contd.) Positive development in recirculation prospects. Closing of contracts expected in 1H. 65 new production licenses to be awarded in 2009 - decisions expected by June. Many companies now holding back investments in anticipation of new licenses. Decisions will spur new
Slide 13: Outlook
Outlook ● Order backlog and development The order inflow in 1Q was significantly lower than anticipated. Low inflow from the Chilean business. This market will remain challenging over the next years. The dominant shortfall in order inflow is from the Norwegian market. The prospect mass and m
Slide 14: Appendix
Background & highlights 1Q 2009 Financial review Outlook Q&A 27 Appendix 28 14
Slide 15: Group organisation and global presence
Group organisation Knut Molaug (CEO) Rolf Andersen Biz. Development (CFO) team IT Steering Technology & product development Committee council Trond Severinsen Jone Gjerde Morten Nærland Patrick Dempster (CMO) (COO) (GM Chile) (GM North America) OPTECH INTECH Sales & Research & OPTECH OPTECH Market o
Slide 16: Innovations: development and M&A
AKVA group – brief historic summary 1974: World’s fist plastic cages (Polarcirkel) – today more than 40.000 units delivered 1978: First Seafood industry software solution 1980: World’s first automatic feed systems 1984: Maritech: first seafood industry PC based ERP software system Innovations: 1985: