Akva Group Asa · OSL:AKVA

Akva Group Asa — Q1 2024 Earnings Presentation

47 slides from Akva Group Asa's earnings presentation, May 3, 2024

  1. Slide 1: Q1 2024 Presentation

    Q1 2024 Presentation Klepp, 3 May 2024 Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  2. Slide 2: Pioneering a better future

    Pioneering a better future AKVAcrour

  3. Slide 3: Agenda Q1 2024

    Agenda|Q1 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  4. Slide 4: Highlights Q1 2024

    Highlights|Q1 2024  Revenue of MNOK 784 and EBIT of MNOK 20  Strong order intake in Sea Based of MNOK 800 but still slow market in Land Based  Award of three new barges for the Nordic market with a total contract value of approx. MNOK 160  Strong focus to further develop and improve implementati

  5. Slide 5: Key figures Q1 2024

    Key figures|Q1 2024 Revenue EBITDA EBIT 784 MNOK 67 MNOK 20 MNOK 102 ** 874 59** 849 ** 86 784 83 * 752 719 67 59 38 36 * 20 11 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Notes: * EBITDA and EBIT in Q1 2021 is adjusted for costs of 49,7 MNOK related to

  6. Slide 6: Development order intake and order backlog

    Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 840 2 884 89 162 2 609 2 599 150 2 396 158 150 1 984 1 170 1 062 106 30 1 905 917 1 495 1 728 1 454 527 718 45 1 018 72 600 0 40 4 21 Digital Digital 690 800 613 574 679 Land Based 946 Land Based 861 817 731 792 Se

  7. Slide 7: Strategic and Operational Status

    Strategic and Operational Status Pioneering a better future

  8. Slide 8: Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030

    Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030 Extrapolation of underlying demand growth for salmon 2012-2030 Consumption of Atlantic salmon WFE in mill. tons Main supply and demand drivers Growth in demand driven by emerging salmon 5.0 High demand growth (~4.5%)1 2022-

  9. Slide 9: Precision Farming - Sea Based Solutions

    Precision Farming - Sea Based Solutions - From advanced, tailored marine infrastructure to single components and products Marine Precision Deep farming Infrastructure Feeding & Lice control - quality equipment for better - for optimizing fish - reducing lice problems operations performance, feed con

  10. Slide 10: Deep farming concept - Nautilus

    Deep farming concept - Nautilus™ - Can solve one of the biggest sustainability challenges in aquaculture: salmon lice Important innovations Digital support Airdome Waterborne feeding NAUTILUS™ Pioneering a better future

  11. Slide 11: Low emission farming

    Low emission farming Battery hybrid Solar energy Waterborne feeding Software control Pioneering a better future

  12. Slide 12: Current digital solutions

    Current digital solutions  106 sites worldwide on  Global market share of 60%  359 modules worldwide on  23 sites worldwide on recurring revenue model recurring revenue model recurring revenue model Pioneering a better future

  13. Slide 13: Post-smolt RAS concept is validated

    Post-smolt RAS concept is validated There are significant benefits from a post smolt strategy:  Reduced time in the sea means less lice treatment and improved fish health  Better utilization of licenses provides improved volume with 30% or higher dependent on the size of the post smolt Outlook – p

  14. Slide 14: AKVA expands into re-use technology for grow-out – first contract

    AKVA leverages its experience and expands into re-use technology for grow-out – first contract signed with Laxey on Iceland  AKVA has previously delivered several facilities with re- use technology to smolt  First contract with Laxey for re-use technology deliveries and advisory services to Grow-o

  15. Slide 15: NOAP announced successful first harvest

    NOAP announced successful first harvest  Construction of NOAP phase I is completed early Q2 with an annual capacity of 4,000t. Financial closure of the project during Q2  NOAP phase II is initiated with additional annual capacity of 4,000t  Phase II to be executed towards end of 2024 and during 2

  16. Slide 16: Expected activity level Land Based

    Expected activity level Land Based  Total order backlog of BNOK 1,5  During 2023 AKVA signed the following contracts: – NOAP phase II MEUR 40 (full grow out): Project is started and will be executed next 2-3 years – Cermaq Finnmark MEUR 60 (post smolt): Project is started and will be executed next

  17. Slide 17: AKVA group on top 10 list for students

    AKVA group on top 10 list for students  Students rank AKVA group to be the 9th most attractive employer in the seafood industry  AKVA group is the only supplier on the list, the rest is dominated by seafood companies * Organized by Salmon City (Norwegian meeting place between students and the indu

  18. Slide 18: Revised medium term financial targets

    Revised medium term financial targets Revenue growth Profitability EBIT enablers  2024: Min. 5% growth (BNOK 3,6)  2024: 4-5% EBIT  Operational excellence but no growth in Land Based  2025: min. 6% EBIT  Cost reduction program implemented 2023  Long term: Organic topline growth of  Improve RO

  19. Slide 19: Agenda Q1 2024

    Agenda|Q1 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  20. Slide 20: Q1 2024 – Income statement

    Q1 2024 – Income statement NOK million 2024 2023 2023  Revenues decreased by MNOK 89 compared Q1 Q1 Total to Q1 23 primarily related to Land Based Revenue Cost of materials 784 427 874 533 3 432 1 996 segment Payroll expenses 231 229 954 Other operating expenses 59 53 219 EBITDA 67 59 263  EBIT in

  21. Slide 21: Revenue and order intake development

    Revenue and order intake development  Last twelve months order intake and revenue was Revenue and order intake (MNOK) MNOK 4,076 and MNOK 3,342, respectively Revenue Order intake 1 840  Revenue decreased by 10% compared to Q1 23  Acceptable order intake in Q1 24 and book-to-bill 1 170 ratio of 11

  22. Slide 22: Revenue by Market and Segment

    Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 940 940 874 33 874 63 27 817 174 800 784 74 817 800 33 127 784 40 37 40 192 50 55 124 150 96 142 101 109 86 178 131 180 175 154 733 655 660 646 618 572 AustralAsia 518 502 489 466 Europe & Middle East Digital Americas

  23. Slide 23: EBITDA and EBIT development

    EBITDA and EBIT development  EBITDA margin increased from 6,7% in Q1 23 EBITDA EBIT to 8,6% in Q1 24 4,0% 120,0 9,5% 10,0 9,1% 120,0 3,5% 4,0 110,0 8,6% 9,0 110,0 3,5  Acceptable EBITDA margin of 10,0% in Sea 100,0 100,0 2,6% 3,0 8,0 Based 90,0 90,0 2,5 6,7% 2,0 7,0 80,0 80,0 1,2% 1,5 70,0  Still

  24. Slide 24: Cash flow and financial position

    Cash flow and financial position Available cash (MNOK) Net Working capital Net debt / EBITDA* 700 600 11,6% 12 1 800 4,35 4,33 4,55 11,3% 4,27 4,16 629 11 4,20 1 600 600 500 10 3,66 3,85 522 526 519 8,6% 1 400 1 307 3,50 8,2% 9 500 398 3,15 400 377 8 1 200 1 079 1 123 1 088 1 109 491 2,80 400 6,2% 7

  25. Slide 25: Development Net interest-bearing debt

    Development Net interest-bearing debt Development net interest-bearing debt Q1 2024 (MNOK) 1 307 20 5 50 1 109 165 67 9 17 Change WC EBITDA CAPEX Currency & Other 31.12.2023 31.03.2024 Net interest New IFRS 16 liability Corporate taxes Pioneering a better future

  26. Slide 26: Capital expenditure

    Capital expenditure CAPEX (MNOK)  Total CAPEX of MNOK 50 in Q1 24 – MNOK 18 applies to our three innovation agendas – MNOK 19 is related to the new global ERP system 64 10 50 44 2 8 35 32 0 8 54 48 32 36 28 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Growth Maintenance Pioneering a better future

  27. Slide 27: Dividend

    Dividend Cash dividend (NOK per share)  The company decided not to pay any dividend for the first half of 2024  Decision regarding dividend for the second half of 2024 to be made in Q3 1,75 1,00 1,00 1,00 2019 2020 2021 2022 Pioneering a better future

  28. Slide 28: Business segments

    Business segments Pioneering a better future

  29. Slide 29: Sea Based Technology

    Sea Based Technology Overall Revenue (MNOK) and EBITDA-margin (%) • Revenue decreased by MNOK 9 while EBITDA margin increased from 8.5% in Q1 23 to 10.0% in Q1 24 1 300 18 • Strong increase in order intake from MNOK 613 in Q1 23 to MNOK 1 200 16 800 in Q1 24 1 100 14 1 000 Nordic 900 12 • Revenue in

  30. Slide 30: Sea Based order intake and backlog development

    Sea Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 900 2 800 2 700 946 817 792 861 2 600 731 2 500 800 2 400 613 690 574 679 2 300 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 12M Revenue 12M Order Intake Order Backlo

  31. Slide 31: Development OPEX based revenue

    Development OPEX based revenue  Positive trend and OPEX based revenue was MNOK 20 Revenue (MNOK) higher in Q1 24 compared to Q1 23 350 42,5% 45 41,0% 37,4% 40 300 35,8% 33,8% 35 250 30 200 25 150 20 263 271 263 242 15 221 100 10 50 5 0 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 % of total Sea Based revenue OP

  32. Slide 32: Land Based Technology

    Land Based Technology Revenue (MNOK) and EBITDA-margin (%)  Order intake of MNOK 72 is MNOK 454 lower than the same 300 18 quarter last year. 16 14  Soft activity level and revenue decreased by 47% in Q1 24 compared to Q1 23 12 200 192 2 0 10  Slow start up of new projects for NOAP (phase II) and

  33. Slide 33: Land Based order intake and backlog development

    Land Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 000 1 500 1 905 1 000 1 018 500 1 728 1 454 1 495 1 062 527 0 4 0 72 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 12M Revenue 12M Order Intake Order Backlog Order In

  34. Slide 34: Digital

    Digital Revenue (MNOK) and EBITDA-margin (%)  Order intake of MNOK 45 is MNOK 15 higher than the same quarter last year 50 25 45 21,8%  Strong momentum and revenue increased by 37% compared to 40 20 37 Q1 23 35 17,4% 3 30 15  Despite improvement compared to Q4 24 EBITDA margin is still 27 11 1 so

  35. Slide 35: Digital order intake and backlog development

    Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 200 180 160 140 162 120 158 150 100 150 106 80 89 60 40 45 30 21 40 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 12M Revenue 12M Order Intake Order Backlog Order Intake P

  36. Slide 36: Outlook

    Outlook Pioneering a better future

  37. Slide 37: Outlook

    Outlook  Salmon prices expected to remain strong driven by reduced supply  AKVA expects to see normalization of the post smolt market in Norway during the second half of 2024  AKVA is aiming for revenue of minimum BNOK 3.6 and EBIT of 4-5% in 2024  AKVA will continue to invest and improve our so

  38. Slide 38: Disclaimer

    Disclaimer  All opinions and statements in this notice are, regardless of source, given in good faith, and may only be valid as of the stated date of this notice and may be subject to change without notice. AKVA group has taken all reasonable steps to ensure that the information contained in this n

  39. Slide 39: Agenda Q1 2024

    Agenda|Q1 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future

  40. Slide 40: Appendix

    Appendix Pioneering a better future

  41. Slide 41: AKVA group in a brief

    AKVA group in a brief AKVA group is the leading technology and service partner to the aquaculture industry worldwide. Listed on Oslo Total turnover in 1.425 employees Companies in 11 Technology leader stock exchange 2023: countries through 40 years since 2006 NOK 3.4 billion Pioneering a better futu

  42. Slide 42: Our presence

    Our presence Present in all markets with offices in:  Norway  Denmark  Scotland  Lithuania  Spain  Greece  Turkey  Chile  Canada  China  Australia Pioneering a better future

  43. Slide 43: Balance sheet

    Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2024 31.3. 2023 31.3. 2023 31.12. Intangible fixed assets 1,3 1 184 178 1 032 047 1 157 266 Deferred tax assets 72 331 33 016 72 464 Tangible fixed assets 668 275 677 035 671 833 Long-term financial assets 2 337 97

  44. Slide 44: Cash flow statement

    Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2024 Q1 2023 Q1 2023 Total Profit before taxes 9 749 -1 191 -29 309 Taxes paid -3 229 -4 097 -12 399 Share of profit(-)/loss(+) from associates -3 497 -4 002 -10 256 Net interest cost 17

  45. Slide 45: Largest shareholders

    Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 18 703 105 51,0 % EGERSUND GROUP AS NOR Last 12 months 6 600 192 18,0 % Israel Corporation Ltd ISR Share price Trading volume 2 160 732 5,9 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 100 16 000 0

  46. Slide 46: Our Values

    Our Values - We CARE for our industry and the communities we are localized Customer focus Aquaculture knowledge Reliability Enthusiasm Pioneering a better future

  47. Slide 47: Pioneering a better future

    Pioneering a better future AKVAcrRour

AKVA group — Q1 2024 Earnings Presentation on 6ix