Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2008 Earnings Presentation
22 slides from Akva Group Asa's earnings presentation, Feb 25, 2009
Slide 1: 4Q 2008 presentation
The global leader in aquaculture technology 4Q 2008 presentation 25 February 2009 Knut Molaug, CEO Rolf Andersen, CFO Agenda Background & highlights 4Q 2008 Financial review Technology & disease 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: 4Q highlights
One-stop-shop in aquaculture technology Value chain planning and optimising software 5 Land based farms Cage based farms 4Q highlights ● Operating revenue in 4Q was 192 MNOK which is 19% lower than same period last year. The period’s EBITDA was –9.7 MNOK primarily negatively affected by reduced reve
Slide 4: 4Q highlights / Market issues
4Q highlights ● Operating revenue for 2008 was 866 MNOK. The period’s EBITDA was 52.7 MNOK, which is lower than last year. ● The market uncertainty has increased due to the global financial turmoil. 7 Market issues ● The underlying market demand is strong in the main markets, except for Chile. ● The
Slide 5: 4Q Financials – P&L
Background & highlights 4Q 2008 Financial review Technology & disease Outlook Q&A 9 4Q Financials – P&L P&L 2008 (Pro-forma) 4Q 4Q Year Year (MNOK) 2008 2007* 2008 2007* Operating revenues 191.8 236.6 866.5 932.0 Operating costs excl. depreciation -201.5 -208.7 -813.8 -841.3 EBITDA -9.7 27.9 52.7 90
Slide 6: 4Q Financials – P&L comments
4Q Financials – P&L comments ● The revenue was 192 MNOK Quarterly revenue reduced by 19% compared to 2007 The activity level was affected by a reduced order inflow in 2H ● The EBITDA result was -9.7 MNOK Reduced revenue volume main explanation to fall in EBITDA result. Significantly affected
Slide 7: Business areas - OPTECH / INTECH
Business areas - OPTECH OPTECH (MNOK) Pro-forma 125 98 101 109 105 107 104 101 96,8 93 94 93 100 84 75 Revenues 50 25 0 2008 2007 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 2006 20 11,5 16,2 16,4 12,1 10,7 15 9 9,4 8,5 10,7 10,3 5,8 10 EBITDA 5 -5,7 0 -5 -10 ● 4Q revenues decreased by 4% compared to last year. ● 4Q EB
Slide 8: Business segments / Market segments
Business segments YTD 2008 Revenues 2008 EBITDA INTECH OPTECH INTECH 54 % 46 % 52 % OPTECH 48 % 15 Market segments Geographic segments (YTD) Medit. Other Iceland UK 2% 6% 5% • Norway dominating 6% segment N. America 8% Norway 52 % • Importance of Chile Chile reduced 21 % AKVA group revenues within o
Slide 9: Balance sheet
Balance sheet Balance sheet (legal) 4Q 4Q (MNOK) 2008 2007 Intangible fixed assets 251.8 224.8 Tangible fixed assets 41.5 34.0 Long term financial assets 2.5 2.1 Fixed assets 295.7 260.9 Stock 142.4 118.7 Receivables 190.2 207.1 Cash and bank deposits 47.9 98.0 Current assets 380.5 423.9 Total asset
Slide 10: Balance sheet items / Strong financial position
Balance sheet items NIBD (MNOK) ● Net interest bearing 210 debt (NIBD): 160 121 146 150 YTD increase in NIBD is mainly related to the 110 52 acquisition of Idema in 60 29 27 June and increase in 10 working capital. -5 4Q07 1Q08 2Q08 3Q08 4Q08 1Q07 2Q07 3Q07 -40 -90 -81 19 Strong financial position
Slide 11: Cash flow statement
Cash flow statement Cash flow statement 2008 2007 2008 2007 (KNOK) 4Q 4Q YTD Total Net cash flow from operational activities 8 530 13 757 - 15 504 20 415 Net cash flow from investment activities -12 597 -32 234 -90 936 -129 917 Net cash flow from financial activities -4982 -20 225 56 279 66 084 Net
Slide 12: Background
Background & highlights 4Q 2008 Financial review Technology & diseases Outlook Q&A 23 Background ● Diseases have historically been Nor: Harvested volumes & use of antibiotics a cause of severe challenges in most animal production industries. ● The Salmon industry has experienced a number of challeng
Slide 13: Situation today / How can technology influence?
Situation today ● Norway: Pancreas Disease (PD) a challenge Sea lice challenge in areas Occasional ISA outbreaks Main challenge is escapee’s ● Chile: Dramatic challenges due to the sanitary situation The general sanitary situation is challenging. • Historically, Caligus (Sea lice) and Sa
Slide 14: Disease free brood stock / High quality juveniles
Disease free brood stock UNI recirculation ● The fundamentally most efficient way to produce disease free fish is to start with disease free brood stock Relatively small biomass and low number of individual fish Technology Solution: ● Use of recirculation allows maintaining brood stock in isolated
Slide 15: Good water quality - the best sites
Good water quality - the best sites ● The grow out phase – the ambient Volume of a cage has increased 240 times conditions on the site is essential for 2005 the result 1980 Technology Solutions: ● Cages and other technology for Visible area: 45% <1% exposed waters ● Cages and other technology for hi
Slide 16: Early diagnostics
Early diagnostics ● Early identification of deviating fish behavior, growth patterns, mortality, cage behavior, etc. ● Software for traceability of production problems is important in the resolving of any problems Accurate and full record keeping to ensure disease free status. ● Early diagnostics
Slide 17: Outlook
Background & highlights 4Q 2008 Financial review Technology & disease Outlook Q&A 33 Outlook ● Chilean market subdued due to the challenging sanitary situation Implementing further cost reduction measures continuously evaluated. Opportunities in recirculation deliveries over the next years. • Co
Slide 18: Outlook
Outlook ● The Scottish market developing soundly ● Market fundamentals developing well ● Closing of contracts challenging due to financial turmoil. ● High underlying demand in Norwegian salmon market The prospect mass towards the Norwegian industry is higher than same time last year Customers ge
Slide 19: Outlook
Outlook ● Order backlog and development The order inflow in 4Q improved compared to 3Q, however the product mix is not balanced • OPTECH has lower inflow than INTECH The Chilean business will be demanding the next years First 4 months of the year normally important for order inflow in OPTECH i
Slide 20: Appendix
Background & highlights 4Q 2008 Financial review Technology & disease Outlook Q&A 39 Appendix 40 20
Slide 21: Group organisation
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 22: 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: