Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2014 Earnings Presentation
29 slides from Akva Group Asa's earnings presentation, Oct 31, 2014
Slide 1: Q3 2014 Presentation
Q3 2014 Presentation Oslo - October 31st, 2014 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner
Slide 2: Agenda
Agenda ● Highlights Q3 2014 Trond Williksen, CEO ● Financial performance Q3 2014 Eirik Børve Monsen, CFO ● Outlooks Trond Williksen, CEO ● Q&A Your Aquaculture Technology and Service Partner 2
Slide 3: Highlights Q3 2014
Highlights Q3 2014 Your Aquaculture Technology and Service Partner 3
Slide 4: Strong performance and growth continues
Strong performance and growth continues AC850 –new feedbarge Third quarter 2014 - Highlights • Strong financial performance continues • Best quarter ever – revenue and margins • Continued good activity in Nordic, Canada and UK – AC600PV – new design and positive development in Chile • Launch of rent
Slide 5: Third quarter 2014 – Highlights continued: Revenue and EBITDA
Strong performance and growth continues Third quarter 2014 – Highlights continued Revenue EBITDA 350 40 300 35 30 250 25 200 20 MNOK MNOK 15 150 10 100 5 - 50 -5 - - 10 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 • Revenue of 330 MNOK (180 MNOK) • EBITDA
Slide 6: Third quarter 2014 – Highlights continued: Order backlog
Strong performance and growth continues Third quarter 2014 – Highlights continued Order backlog • Order backlog remains at a high level – highest ever at the MNOK end of a 3rd quarter 600 • Order backlog of 349 MNOK (299 MNOK) 500 • Order inflow of 201 MNOK (271 MNOK) 400 2011 300 2012 2013 YTD 30.0
Slide 7: Launch of new rental model in Norway
Launch of new rental model in Norway ● Part of AKVA group’s reoccurring revenue strategy ● Rental of equipment for a limited time, i.e. 3, 4 or 5 years ● We will start with AKVAsmart products like cameras, lights, etc, but all kind of products could in the future be included in this model ● The rent
Slide 8: Launch of dividend policy in AKVA group ASA
Launch of dividend policy in AKVA group ASA • The Company’s main objective is to maximize the return on the investment • A two step policy: made by its shareholders through both increased share prices and dividend payments • The dividend level shall reflect the present and expected future cash • Bas
Slide 9: AKVA group – uniquely positioned for future growth
AKVA group – uniquely positioned for future growth Cage based farming Land based farming Technology AKVA group in brief Technology • The most recognized brand in aquaculture technology • Leading technology solutions and service partner to the global aquaculture industry • Global presence - subsidiar
Slide 10: Operational structure
Operational structure Africa Your Aquaculture Technology and Service Partner 10
Slide 11: Global presence – three regions
Global presence – three regions Your Aquaculture Technology and Service Partner
Slide 12: Market segments - Revenue
Market segments - Revenue By product groups – Q3 2014 By geographic regions – Q3 2014 Land based Export 10 % 9% Americas Software 19 % 8% Cage based 82 % Nordic 72 % Land based technologies unchanged, Cage based technologies +5 percentage points and Software -5 Export -14 percentage points, Nord
Slide 13: Market segments – Revenue continued
Market segments – Revenue continued By technology and reoccurring – Q3 2014 By species – Q3 2014 Non Seafood Reoccurring 8% 25 % Other Species 8% Salmon Technology 84 % 75 % Technology = Revenue based on one-off sales Salmon = Revenue from technology and services sold to production of salmon R
Slide 14: Financial performance Q3 2014
Financial performance Q3 2014 Your Aquaculture Technology and Service Partner 14
Slide 15: Continued strong financial performance
Continued strong financial performance MNOK Revenue 350 300 • Good operational performance 250 2011 • Revenue YTD of 941 MNOK vs 919 MNOK for full year 2013 – 40% 200 150 2012 revenue growth YoY 2013 • EBITDA YTD of 90 MNOK (38 MNOK) / 9.6% (5.7%) 100 2014 • 50 CBT being main driver with economies o
Slide 16: P & L segments – Cage Based Technologies
P & L segments – Cage Based Technologies P&L 2014 2014 2013 2014 2013 2013 Nordic (MNOK) 3Q 3Q YTD YTD Total ● Revenue and margins are stabilizing on a higher level – economies of scale and controlled cost being main drivers for Cage based technologies improved margins Nordic operating revenues 184,
Slide 17: P & L segments – Software
P & L segments – Software P&L 2014 2014 2013 2014 2013 2013 (MNOK) 3Q 3Q YTD YTD Total ● Software continues to deliver stable Software revenue and good margins – slightly Nordic operating revenues 19,9 19,3 61,9 57,5 79,3 reduced margins YoY 2014 due to Americas operating revenues 4,6 4,2 13,8 12,8
Slide 18: P & L segments – Land Based Technologies
P & L segments – Land Based Technologies P&L 2014 2014 2013 2014 2013 2013 (MNOK) 3Q 3Q YTD YTD Total Land based technologies ● YTD significantly increased activity and improved Nordic operating revenues 31,4 17,7 108,4 56,1 92,2 performance compared to previous years Americas operating revenues 3,2
Slide 19: Financials – Detailed P & L
Financials – Detailed P & L P&L 2014 2014 2013 2014 2013 2013 (MNOK) 3Q 3Q YTD YTD Total OPERATING REVENUES 329,7 180,4 941,0 672,8 918,7 Operating costs ex depreciations 295,5 172,9 851,0 634,5 871,8 EBITDA 34,2 7,5 90,0 38,2 46,9 Depreciation 9,1 8,4 26,2 24,8 33,1 EBIT 25,1 -0,9 63,8 13,4 13,8 Ne
Slide 20: Group financial profile - strong
Group financial profile - strong Available cash Working capital (in % of 12 months rolling revenue) Available cash MNOK 200 Working Capital 180 180 25,0 % 160 160 140 19,1 % 18,7 % 20,0 % 20,0 % 140 17,4 % 120 15,7 % MNOK 120 100 15,0 % MNOK 100 11,5 % 12,4 % 11,6 % 80 80 162 162 8,4 % 156 147 10,0
Slide 21: Group financial profile – strong, continued
Group financial profile – strong, continued Net interest bearing debt (NIBD) Equity ratio (in %) Net Interest Bearing Debt 140 Equity 120 380 54% 51,9 % 100 370 50,2 % 52% 360 48,4 % 48,7 % 50% 80 MNOK 350 46,9 % 45,8 % 44,8 % 48% 60 340 44,3 % 44,4 % 46% 40 330 320 346 342 342 365 44% 338 339 347 3
Slide 22: Balance sheet
BALANCE SHEET 2014 2013 2013 (MNOK) 30.9. 30.9. 31.12. Balance sheet Intangible fixed assets Fixed assets 254,5 65,2 250,1 51,7 250,8 55,0 Long-term financial assets 1,8 1,8 2,0 FIXED ASSETS 321,4 303,6 307,8 Stock 134,7 158,8 144,2 Trade receivables 222,4 153,7 155,5 Other receivables 60,4 34,3 56,
Slide 23: Cash flow statement
Cash flow statement CASH FLOW STATEMENT 2014 2013 2014 2013 2013 (NOK 1 000) 3Q 3Q YTD YTD Total Net cash flow from operations 34 798 6 588 89 043 31 578 37 789 Net cash flow from change in working capital 23 622 -11 494 -3 762 17 319 56 441 Net cash flow from operating activities 58 419 -4 905 85 2
Slide 24: Dividend in AKVA group ASA
Dividend in AKVA group ASA • A two step policy: • AKVA group ASA aims to pay out dividend twice every The dividend level shall reflect the year, in Q2 and Q4 present and expected future cash generating potential of AKVA group. • An extraordinary dividend according to this dividend AKVA group will
Slide 25: Outlooks
Outlooks Your Aquaculture Technology and Service Partner 25
Slide 26: Order backlog and inflow
Order backlog and inflow Order backlog (in MNOK) Order inflow (in MNOK) MNOK MNOK 600 500 450 500 400 400 2011 350 2011 300 300 2012 2012 250 2013 200 2013 200 2014 150 2014 100 100 50 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Order backlog 349 MNOK vs 299 MNOK by end of Q3 2013 Total order inflow of 201 MNOK
Slide 27: Maintaining positive outlook
Maintaining positive outlook ● Positive outlook in all market segments maintained ● Demand in the Nordic market is expected to be good in the next quarters. However, fourth quarter continues to be low season for deliveries in the Nordic market with the usual impact on the P&L in this quarter. Invest
Slide 28: Q&A
Q&A Your Aquaculture Technology and Service Partner 28
Slide 29: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner