Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2019 Earnings Presentation
39 slides from Akva Group Asa's earnings presentation, May 10, 2019
Slide 1: Q1 2019 Presentation
Q1 2019 Presentation Oslo – 10 May 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q1 2019 – by CEO Hallvard Muri
Highlights Q1 2019 – by CEO Hallvard Muri
Slide 4: Record high order intake – 1.1 billion NOK
Record high order intake – 1.1 billion NOK Order intake • 1.1 billion NOK order intake - strong across all regions +73% 1 107 • Another quarter with positive development in the Cage 997 44 SW Based segment, driven especially by Nordic CBT and 46 Egersund Net 300 LBT 778 218 48 639 • Major land based
Slide 5: Strong revenue growth
Strong revenue growth Revenue • 45% increase in revenue compared to Q1 2018 +45% • Revenue growth from acquisition and organically • Americas another positive quarter with revenue of 145 MNOK, up from 113 MNOK in Q1 2018 852 • Strong order intake development in Nordic CBT, driving 726 revenue, incre
Slide 6: EBITDA development
EBITDA development • EBITDA of 97 MNOK in the quarter, including 15 MNOK in effect of EBITDA reclassification due to IFRS 16 (leases) +64% • Americas continued positive development with an EBITDA of 15 97 MNOK compared to 6 MNOK in Q1 2018, driven first and foremost 7 by improved margins. 8 • Nordic
Slide 7: Highest order backlog ever
Highest order backlog ever Order backlog • First quarter 2019 – Highlights +13% – Strong start of the year; order backlog at end of March of 1.6 BNOK 1 611 1 380 1 381 1 430 1 356 – Highest order intake ever in a quarter of 1.1 billion NOK 1 318 1 274 629 – Significant order with Svaberget Smolt AS
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +121% +125% +100% 0,10 0,15 0,11 852 97 0,06 0,94 0,87 589 510 54 59 0,60 385 43 0,45 Q1 16 Q1 17 Q1 18 Q1 19 Q1 16 Q1 17 Q1 18 Q1 19 Q1 16 Q1 17 Q1 18 Q1 19 Amortization from intangible assets related to acquisitions In August 2018, number of shares increase
Slide 9: Our presence
Our presence AKVA group Agents and distributors
Slide 10: Revenue in geographical regions
Revenue in geographical regions AKVA group’s geographical regions – absolute and relative 852 726 627 637 589 537 557 63% 66% 61% 69% 68% 70% 484 633 79% 74% 506 412 392 372 379 423 334 19% 22% 20% 113 139 20% 23% 125 145 11% 24% 17% 128 177 61 98 18% 14% 17% 105 90 106 74 10% 11% 9% 9% 54 52 49 42
Slide 11: Development in OPEX based revenue
Development in OPEX based revenue 300 33,8% 35 • Egersund Net contributing with 90 MNOK in the quarter 29,0% 234 28,2% 245 27,5% 30 250 27,1% 26,1% • Stable development for the rental business (Scotland and 25 Norway) in 2019. 200 22,1% 22,5% 94 90 20 150 31 • Service in ASA Nordic started the year
Slide 12: Revenue by product group and species
Revenue by product group and species By product groups – Q1 2019 By species – Q1 2019 852 852 44 1 56 726 726 23 118 637 44 1 637 74 627 627 589 42 1 40 1 129 589 47 42 537 557 189 538 557 55 Software 47 1 116 52 46 51 41 1 484 46 0 124 Non seafood 54 484 54 34 LBT S&AS 108 32 112 38 0 124 201 Other
Slide 13: Q1 – Operational Highlights
Q1 – Operational Highlights • Significant improvement at Helgeland Plast but still a way to go to achieve full effect of investments • Norwegian feed barge business – strong competition and limitations in supply (suppliers/yards) • Continued positive market sentiment in Chile and increasing margins
Slide 14: Risk management Submerge and raise the cage – safe and remote Underwater feeding
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 15: Financial performance Q1 2019 – by CFO Simon Nyquist Martinsen
Financial performance Q1 2019 – by CFO Simon Nyquist Martinsen
Slide 16: Q1 2019 – Financial highlights
Q1 2019 – Financial highlights Revenue 852 • Last twelve months order intake and revenue now at 3,023 MNOK and 2,842 MNOK respectively 726 627 637 589 • The order book has increased to 1,611 MNOK at the end of 537 557 510 Q1 2019, which is a 255 MNOK increase in the quarter 484 449 393 408 354 • Sev
Slide 17: Q1 2019 – Financial highlights
Q1 2019 – Financial highlights 97 EBITDA (MNOK) 100 • Strong contribution from Americas as well as inclusion of 80 71 65 Egersund Net when comparing to the same quarter last year 60 54 59 52 61 60 57 40 43 38 40 24 • The pipe factory in Mo i Rana experienced a strong 20 quarter with high and efficie
Slide 18: Cage Based Technology
Cage Based Technology Nordic • The margins in the Norwegian barge business are Revenue and EBITDA % significantly better than the last half of 2018, still an untapped potential in project execution 800 11,1% 12 700 689 • The pipe factory in Mo i Rana experienced a strong 10 quarter with high and eff
Slide 19: Cage Based Technology
Cage Based Technology Americas • Americas have significantly grown revenue by 29% Revenue and EBITDA % compared to the same quarter last year, on top of a 800 11,1% 12 strong order backlog of 218 MNOK at the end of the 700 689 quarter 73 10 • Americas region has grown in EBITDA by 143 % 600 9,1% com
Slide 20: Land Based Technology
Land Based Technology Revenue and EBITDA % • Major land based contract awarded by Svaberget 119 Smolt AS of approximately 300 MNOK in the 120 0 14 109 quarter 110 18 5 0 12 100 • Pipeline of projects continue to be good 10,1% 10 90 80 8,5% • Increase in revenue from 109 MNOK in Q1 2018 to 8 119 MNOK
Slide 21: Software
Software Revenue and EBITDA % • Increased integration and cooperation 50 47 30 between SW division and development of 1 44 control systems 45 5 1 40 5 22,2% • Plans are established for upgrades of technical platform of Fishtalk 35 20 30 18,6% • Cooperation agreement entered into with Observe (AI), f
Slide 22: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2019 2018 2019 2018 2018 Q1 Q1 YTD YTD Total Order backlog 1 611 1 430 1 611 1 430 1 356 Order intake 1 107 639 1 107 639 2 555 • Of which Land Based is 629 MNOK P&L OPERATING REVENUES 852 589 852 589 2 579 • Investment in subsidiaries accounted for by equity IFRS 16
Slide 23: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 382 15,8% 10,7% 400 356 16 350 10,2% 11 13,8% 304 10 350 14 300 9,0% 262 9 300 292 12 250 8 10,3% 186 6,5% 6,3% 6,7% 217 7 250 10 8,4% 8,2% 200 5,5% 6 200 127 8 5,0% 462 6,8% 6,7% 175 5,7% 152 5 420 418 4
Slide 24: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown 2019 90 000 14,2% 15 Rental 80 000 Intangible 5 091 70 000 11,2% 8 536 60 000 10 50 000 6,8% 5,8% 40 000 5,9% 78 936 30 000 57 368 4,0% 4,3% 4,2% 5 20 000 42 852 2,6% 42 225 31 666 35 556 10 000 25 517 19 495 16 881 21 928 0 0 1Q 2017 2Q 2017 3Q 2
Slide 25: Net interest bearing debt/EBITDA of 1.9
Net interest bearing debt/EBITDA of 1.9 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 700 3,15 Net interest bearing debt 31.12.2018 604 547 632 EBITDA -96 928 605 600 2,6 2,80 2,5 Income taxes paid 7 401 531 2,45 Net interest paid 10 205 500 2,0 1,9
Slide 26: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 1 100 1 063 1 055 50 0,8 1 017 0,74 1 000 0,70 0,71 0,7 900 38,2% 39,3% 38,4% 0,63 0,63 0,62 40 0,58 800 0,57 0,6 31,4% 30,1% 0,49 700 29,4% 28,0% 0,5 26,8% 30 600 31,3% 473 476 500 491 504 0,4 500 44
Slide 27: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 15,4% 16,4% 14,3% 16,9% 16,8% 13,4% 14,0% 14,5% 11,1% 12,5% 11,9% 11,3% 9,6% 9,1% 7,9% 7,9% 8,6% 7,0% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 Including seven months of EBIT from Egersun
Slide 28: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2019 2018 2019 2018 2018 (NOK 1 000) Q1 Q1 YTD YTD Total Net cash flow from operations 78 950 46 664 78 950 46 664 204 735 Net cash flow from change in w orking capital 57 145 45 596 57 145 45 596 -50 821 Net cash flow from operationa
Slide 29: Balance sheet
Balance sheet BALANCE SHEET 2019 2018 2018 (MNOK) 31.03 31.03 31.12 ASSETS 3 196 1 755 2 703 Intangible non-current assets 1 077 580 1 085 Tangible non-current assets 336 250 332 Financial non-current assets 72 5 73 IFRS 16 - RoU Asset 443 - - Inventory 455 247 462 Receivables 625 518 571 Cash and c
Slide 30: 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 31: 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 Last 12 months 3 900 000 11,7 % WHEATSHEAF INVESTMENTS LIMITED GBP Share price Trading volume 983 242 2,9 % SIX SIS AG Nomi nee CHE 76 50 000 000 825 93
Slide 32: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 33: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 12 and service exchange countries countries. partner since 2006 over 40 1 541 years employees
Slide 34: Solutions
Solutions Cage Based Technology Land Based Technology Software
Slide 35: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 36: Order backlog and inflow, 2016 through 2019
Order backlog and inflow, 2016 through 2019 Order backlog Order intake 1 611 1 106 1 430 997 1 380 1 381 1 356 1 318 1 274 300 629 218 778 1 077 479 1 085 629 998 537 448 620 449 886 639 589 51 561 557 430 822 359 533 304 546 697 412 103 471 448 72 33 417 441 417 92 437 806 250 87 34 283 101 57 779
Slide 37: Outlook – AKVA group
Outlook – AKVA group • Developing digitalization strategy, upgrading software platform and control systems. Interim CDO hired. • New product development well under way; cage system, and feeding. New CTO hired • Egersund Net integration continued positive development – cages, nets and mooring (total)
Slide 38: CUSTOMER FOCUS
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 39: AKVA group
AKVAcRovur