Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2018 Earnings Presentation
37 slides from Akva Group Asa's earnings presentation, Nov 2, 2018
Slide 1: Q3 2018 Presentation
Q3 2018 Presentation Oslo – November 2nd 2018 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q3 2018 – by CEO Hallvard Muri
Highlights Q3 2018 – by CEO Hallvard Muri
Slide 4: Order Intake development
Order Intake development Order intake • Order intake in Nordic CBT down compared to Q3 2017, 778 but four barges signed in October for 80 MNOK 48 -18% 639 • Barge Supply and Sales Contract signed with Grieg NL 589 45 Seafarms Ltd, not included in order backlog 561 303 546 557 51 51 69 33 53 103 33 4
Slide 5: Backlog driving revenue
Backlog driving revenue Revenue +32% • 20 % organic increase in revenue compared to Q3 2017, 637 32 % increase including Egersund Net 55 • Europe & Middle East increased the revenue from 52 MNOK in Q3 2017 to 106 MNOK in Q3 2018 • Americas has another strong quarter with a revenue of 139 MNOK compar
Slide 6: EBITDA with positive development
EBITDA with positive development EBITDA • EBITDA of 71 MNOK in the quarter, including 10 MNOK from Egersund Net in September +18% 72 • Adjusted for 1 MNOK in acquisition costs related to the Egersund 10 Net transaction, EBITDA ended at 72 MNOK in Q3 2018 1 8 • Europe & Middle East EBITDA at 8 MNOK,
Slide 7: Order backlog development
Order backlog development • Third quarter 2018 – Highlights Order backlog – Order backlog end of September of 1.1 BNOK -21% 1 430 – Adjusted EBITDA of 72 MNOK in the quarter 1 380 1 381 1 318 1 274 – Dividend of 0.75 NOK paid out in September 2018 1 077 479 1 085 998 537 629 449 620 – Completion of
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +71% +68% +40% 1 854 180 182 2,81 2,68 1 531 121 1,92 1 081 1 155 108 1,37 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 YTD YTD YTD Not adjusted for acquisition costs related to the Egersund Net transaction
Slide 9: Where do we deliver
Where do we deliver AKVA group’s geographical regions Income distribution Q3 2018 22%(21%) 58%(65%) 20%(14%) Nordic Americas Export Nordic AKVA group EME Agents and Distributors Americas
Slide 10: Development in OPEX based revenue
Development in OPEX based revenue 220 28,3% 29,0% 28,2% 30 27,1% • The Marine Service business in Chile developing well and positive 200 26,1% outlook for further growth 23,4% 180 25 180 22,1% 22,5% 160 31 • Egersund Net is contributing with 31 MNOK in the quarter 140 20 120 • Stable development for
Slide 11: Revenue by product group and species
Revenue by product group and species By product groups – Q3 2018 By species – Q3 2018 627 637 627 637 589 42 40 0 589 55 47 537 557 1 510 537 557 47 52 46 51 510 46 1 116 124 30 54 41 484 34 449 41 1 484 0 108 449 52 54 32 Software 1 38 0 124 28 46 40 0 84 112 Non seafood 44 37 LBT S&AS 83 98 140 82
Slide 12: Q3 – Operational Highlights
Q3 – Operational Highlights • Continued positive development in Americas / Chile as well as for the Land Based segment • Good outlook for Russia with new orders signed in Q3 • Pipeline of Land Based projects remains strong but decisions continues to be delayed • Norwegian marine service business slo
Slide 13: Risk management: Submerge and raise the cage – 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 14: Financial performance Q3 2018 – by CFO Simon Nyquist Martinsen
Financial performance Q3 2018 – by CFO Simon Nyquist Martinsen
Slide 15: Q3 2018 – Financial highlights
Q3 2018 – Financial highlights Revenue • 20% organic growth, a new quarter with strong 637 627 contributions from Americas, Europe & Middle East 589 and Land Based 537 557 510 484 449 • Egersund Net is contributing with 55 MNOK in the 393 402 408 quarter 355 354 344 325 • Last twelve months order in
Slide 16: Q3 2018 – Financial highlights
Q3 2018 – Financial highlights EBITDA (MNOK) 80 71 • Adjusted for acquisition costs the EBITDA is 72 MNOK 59 65 61 60 54 in the quarter, and the EBITDA margin is 11,3% 60 52 40 41 43 41 38 40 27 27 24 • Driven by a strong order book revenue is significantly 20 up in Americas and EME, areas with lowe
Slide 17: Cage Based Technologies
Cage Based Technologies Nordic • Margins impacted by 1 MNOK of acquisition costs in Q3 Revenue and EBITDA % 2018, in addition to 8 MNOK in Q2 2018 500 474 14 12,6% 450 • Norwegian barge business with low margins in the 106 12 quarter due to unexpected and ongoing manufacturing 400 10,2% 363 challeng
Slide 18: Cage Based Technologies
Cage Based Technologies Americas • Americas is significant up and has a growth in the revenue of 43% compared to the same quarter last Revenue and EBITDA % year, on top of a strong order backlog of 169 MNOK 500 474 14 at the end of the quarter 12,6% 450 106 12 • Stock notice of signed Sales and Supp
Slide 19: Land Based Technologies
Land Based Technologies Revenue and EBITDA % • Decisions for larger post smolt orders in 130 124 12 Norwegian pipeline has been delayed 120 13 10,5% 110 10 • Pipeline of projects continue to be good 9,1% 100 8 90 84 • Strong increase in revenue from 84 MNOK 80 5 in Q3 2017 to 124 MNOK in Q3 2018, a
Slide 20: Software
Software Revenue and EBITDA % • AKVA group Software ends the quarter 45 30 38 40 with an EBITDA of 6 MNOK compared to 40 19,9% 23,3% 1 4 MNOK in Q3 2017 1 4 20 35 3 • Wise ehf ends the quarter with an 30 EBITDA of 4 MNOK compared to 3 10 25 MNOK in the same quarter in 2017 20 35 0 34 • As noted in s
Slide 21: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2018 2017 2018 2017 2017 Q3 Q3 YTD YTD Total Order backlog 1 085 1 380 1 085 1 380 1 381 Order intake 448 546 1 558 1 913 2 471 • Of which Land Based is 359 MNOK P&L OPERATING REVENUES 637 484 1 854 1 531 2 088 • Includes 9 MNOK of acquisition costs Operating costs e
Slide 22: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 382 15,8% 9,0% 400 16 250 9 217 8 350 14 200 6,5% 6,3% 6,7% 7 300 12 7,2% 5,5% 152 6 250 186 10 150 5,0% 8,7% 8,4% 5,7% 135 137 8,2% 5 200 8 5,3% 462 6,8% 6,7% 175 127 107 6,2% 98 102 100 4 420 418 5,8% 1
Slide 23: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown YTD 2018 90 000 14,2% 15 Rental 80 000 Intangible 4 997 70 000 11,2% 19 345 60 000 10 50 000 6,9% 6,8% 40 000 5,5% 5,9% 78 936 30 000 57 368 4,0% 4,3% 5 20 000 42 852 2,6% 31 666 10 000 24 407 24 728 25 517 19 495 16 881 60 909 0 0 Ordinary 3Q 201
Slide 24: Net interest bearing debt/EBITDA of 2.6
Net interest bearing debt/EBITDA of 2.6 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 700 3,15 Net interest bearing debt 30.06.2018 371 270 632 EBITDA -70 739 600 2,6 2,80 Income taxes paid 210 2,45 Net interest paid 3 684 500 2,0 2,10 Capex 16 881 4
Slide 25: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 1 100 50 0,74 0,8 1 017 1 000 0,70 0,71 0,7 900 38,2% 0,63 0,63 0,62 40 0,58 800 0,6 37,1% 31,4% 30,1% 0,49 0,49 700 29,4% 28,0% 0,5 26,8% 30 600 31,6% 31,3% 473 476 500 491 504 0,4 500 437 435 446 20
Slide 26: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 14,6% 11,3% 4,4% 3,4% 15,4% 16,4% 14,3% 16,5% 17,0% 13,4% 14,6% 14,7% 12,4% 13,2% 12,7% 11,1% 11,4% 10,9% 9,8% 9,6% 10,2% 7,9% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Including only one
Slide 27: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2018 2017 2018 2017 2017 (NOK 1 000) Q3 Q3 YTD YTD Total Net cash flow from operations 65 246 54 275 155 756 159 382 195 535 Net cash flow from change in w orking capital -55 555 1 550 -69 513 -80 277 -108 130 Net cash flow from opera
Slide 28: Balance sheet
Balance sheet BALANCE SHEET 2018 2017 2017 (MNOK) 30.09 30.09 31.12 ASSETS 2 663 1 521 1 663 Intangible non-current assets 1 088 578 596 Tangible non-current assets 325 197 246 Financial non-current assets 66 10 7 Inventory 427 223 238 Receivables 601 389 459 Cash and cash equivalents 155 123 117 LI
Slide 29: 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 INVESTMENT GBR Share price Trading volume 1 072 857 3,2 % VERDIPAPIRFONDET ALF NOR 76 50 000 000 575 414 1,7
Slide 30: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 31: 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 1 491 years employees
Slide 32: Solutions
Solutions Cage Based Technology Land Based Technology Software
Slide 33: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 34: Order backlog and inflow, 2015 through 2018
Order backlog and inflow, 2015 through 2018 Order backlog Order intake 1 430 778 1 380 1 381 1 318 1 274 639 1 077 479 1 085 589 51 304 629 998 537 533 546 561 557 620 449 103 504 72 33 886 471 92 448 430 822 359 441 412 417 34 697 368 101 87 643 417 649 348 250 214 57 350 547 36 283 494 437 588 80
Slide 35: Outlook – AKVA group
Outlook – AKVA group • Egersund Net integration process developing well • Continued positive outlook for most markets, good opportunities to grow on the Canadian east coast • Land Based – focus on post smolt, still high quote bank • Execution of improvement programs, manufacturing, sourcing and logi
Slide 36: CUSTOMER FOCUS
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 37: AKVAcRovuP
AKVAcRovuP