Akva Group Asa · OSL:AKVA

Akva Group Asa — Q4 2014 Earnings Presentation

29 slides from Akva Group Asa's earnings presentation, Feb 20, 2015

  1. Slide 1: Q4 2014 Presentation

    Q4 2014 Presentation Oslo - February 20th, 2015 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner

  2. Slide 2: Agenda

    Agenda 1 Highlights 2 Financial performance 3 Outlook 4 Q&A Your Aquaculture Technology and Service Partner

  3. Slide 3: Highlights Q4 2014 - by CEO Trond Williksen

    Highlights Q4 2014 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3

  4. Slide 4: Completing the best year ever

    Completing the best year ever Fourth quarter and year end 2014 – Highlights • Improved financial performance YoY in a traditionally low season quarter • Positive development in Chile • Strong order backlog • Completing the best year ever for AKVA group ASA • Dividend of 25.8 MNOK paid in December an

  5. Slide 5: Completing the best year ever – Good development YoY in Q4

    Completing the best year ever – Good development YoY in Q4 Revenue +24% EBITDA +53% MNOK 305 246 MNOK 13 9 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Your Aquaculture Technology and Service Partner 5

  6. Slide 6: Completing the best year ever – Second highest order backlog ever

    Completing the best year ever – Second highest order backlog ever Order Inflow Order Backlog MNOK MNOK 467 460 520 504 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Your Aquaculture Technology and Service Partner 6

  7. Slide 7: Completing the best year ever – strong development YoY in 2014

    Completing the best year ever – strong development YoY in 2014 Revenues in MNOK EBITDA in MNOK +36% +120% 1246 103 919 47 2013 2014 2013 2014 Your Aquaculture Technology and Service Partner 7

  8. Slide 8: AKVA group – uniquely positioned for future growth

    AKVA group – uniquely positioned for future growth 1 2 4 Cage-based Land-based Software • The most recognized brand in aquaculture technology • Plastic and • Land-based Software steel cages facilities • Leading technology solutions and service partner to the global Infra- Land-based aquaculture indu

  9. Slide 9: Operational structure

    Operational structure Africa Your Aquaculture Technology and Service Partner 9

  10. Slide 10: Presence in all main farming regions

    Presence in all main farming regions Map of activities Revenue per region, Q4 2014 Export 11 % Americas 19 % Nordic Americas Nordic Export 70 % Your Aquaculture Technology and Service Partner

  11. Slide 11: Strategic priority to increase the proportion of reoccurring revenue

    Strategic priority to increase the proportion of reoccurring revenue Technology sale vs reoccurring revenue, Q4 2014 Comments • Introduction of rental business model in Norway in Q4 2014. Already successfully introduced in UK and Canada • Rental is an “all inclusive service” providing for instance l

  12. Slide 12: Revenue by product groups and species

    Revenue by product groups and species By product groups – Q4 2014 By species – Q4 2014 Land Non based Seafood 17 % 7% Other Species 10 % Software 10 % Cage based Salmon 73 % 83 %  Cage based technologies = Cages, barges, feed systems and other  Salmon = Revenue from technology and services sold to

  13. Slide 13: Disclosure of large shareholdings – Egersund Group’s reduction in shareholding completed

    Disclosure of large shareholdings – Egersund Group’s reduction in shareholding completed On February 4th, 2015 the following stock notice was issued by Egersund Group AS: Egersund Group AS have today sold 3.700.000 shares in AKVA group ASA (“AKVA”) to a price of 26.40 per share. After this transacti

  14. Slide 14: Financial performance Q4 2014 – by CFO Eirik Børve Monsen

    Financial performance Q4 2014 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 14

  15. Slide 15: Financially the best year ever

    Financially the best year ever Q4 2014 - Overall financial performance as expected 2014 – Financially the best year ever • Q4 has historically been low season for AKVA • …both P&L and balance group • Significantly increased revenues YoY • EBITDA margin of 8.3% (5.1%) • Good nominal increase in EBITD

  16. Slide 16: Financially the best year ever

    Financially the best year ever Revenue EBITDA MNOK 350 330 310 301 305 MNOK 300 40 246 34 250 35 32 30 200 24 25 150 20 15 13 100 9 10 50 5 - - 1Q 2Q 3Q 4Q -5 1Q 2Q 3Q 4Q 2011 2012 2013 2014 - 10 2011 2012 2013 2014 * The Q1 2012 revenue and EBITDA bars above are excluding the 29 MNOK gain related t

  17. Slide 17: P & L segments – Cage Based Technologies

    P & L segments – Cage Based Technologies Nordic P&L 2014 2014 2013 2014 2013 ● Q4 is low season for CBT Nordic. However, revenue and margins are stabilizing on a higher level YoY. Change in product mix is the main (MNOK) 4Q 4Q Total Total explanation in reduced margin QoQ Cage based technologies Ame

  18. Slide 18: P & L segments – Software

    P & L segments – Software P&L 2014 2014 2013 2014 2013 (MNOK) 4Q 4Q Total Total ● AKVA group Software AS in Norway continues to deliver stable revenue and Software good margins in Q4 - ending another Nordic operating revenues 24,6 21,8 86,5 79,3 good year financially Americas operating revenues 4,5

  19. Slide 19: P & L segments – Land Based Technologies

    P & L segments – Land Based Technologies P&L 2014 2014 2013 2014 2013 (MNOK) 4Q 4Q Totalt Total Land based technologies Nordic operating revenues 48,9 36,1 157,3 92,2 ● Increased activity and improved performance in 2014 compared to previous years Americas operating revenues 3,2 1,8 9,4 4,8 Export o

  20. Slide 20: Financials – Detailed P & L

    Financials – Detailed P & L P&L 2014 2014 2013 2014 2013 (MNOK) 4Q 4Q Total Total OPERATING REVENUES 305,0 245,9 1 246,1 918,7 Operating costs ex depreciations 291,7 237,2 1 142,7 871,8 • Significantly reduced Net Interest EBITDA 13,4 8,7 103,4 46,9 Depreciation 9,5 8,3 35,7 33,1 Expense in 2014 vs

  21. Slide 21: Group financial profile - strong

    Group financial profile - strong Available cash ROCE +48 MNOK 15,2 % 14,1 % MNOK 8,4 % 8,3 % 183 153 144 144 86 96 70 68 3,3 % 63 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Your Aquaculture Technology and Service Partner

  22. Slide 22: Group financial profile – strong, continued

    Group financial profile – strong, continued Working capital Equity +50 MNOK MNOK MNOK 400 70 % 389 180 25 % MNOK 156 380 375 60 % 160 19 % 20 % 48 % 47 % 50 % 140 126 360 45 % 43 % 120 106 40 % MNOK 100 15 % 339 MNOK 100 340 12 % 10 % 325 30 % 80 8% 10 % 320 60 20 % 40 5% 300 10 % 20 0 0% 280 0% 4Q1

  23. Slide 23: Net debt/EBITDA of 0.9x

    Net debt/EBITDA of 0.9x Net 150 debt (MNOK) and net debt/EBITDA 5,0 Change in net debt (TNOK) 122 120 4,3 4,0 108 Net debt 30.09.2014 43 940 94 3,2 92 89 EBITDA -13 378 90 3,0 2,4 75 Income taxes -1 419 70 Net financial items 880 60 2,0 Capex paid 18 633 1,6 1,3 44 Paid dividend 25 834 1,0 0,9 Other

  24. Slide 24: Balance sheet

    Balance sheet BALANCE SHEET 2014 2013 CAPEX Q4 2014 2014 2013 (MNOK) 31.12. 31.12. (MNOK) ASSETS 904 722 Total CAPEX 18,6 49,8 39,9 Intangible non-current assets 278 251 Tangible non-current assets 74 55 Ordinary CAPEX including rental 11,8 31,9 23,4 Financial non-current assets 2 2 Capitalized R&D

  25. Slide 25: Outlooks – by CEO Trond Williksen

    Outlooks – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 25

  26. Slide 26: Order backlog and inflow

    Order backlog and inflow Order backlog Order inflow MNOK 600 MNOK 520 500 504 467 460 500 478 452 450 400 400 349 327 2011 350 2011 2012 300 300 243 250 2012 2013 201 200 200 2013 2014 150 2014 100 100 50 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q  Second highest order backlog ever  Second highest quarterly orde

  27. Slide 27: Maintaining positive outlook

    Maintaining positive outlook ● Positive outlook in all main market segments maintained ● Strong demand in the Nordic market is expected to last into the next quarters. The demand is driven by high salmon prices, which is fuelling investments in increased efficiency and sustainable solutions for cage

  28. Slide 28: Q & A

    Q&A Your Aquaculture Technology and Service Partner 28

  29. Slide 29: Your Aquaculture Technology and Service Partner

    Your Aquaculture Technology and Service Partner

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