Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2017 Earnings Presentation
39 slides from Akva Group Asa's earnings presentation, Mar 1, 2018
Slide 1: Q4 2017 Presentation
Q4 2017 Presentation Oslo – March 1st 2018 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q4 2017 – by CEO Hallvard Muri
Highlights Q4 2017 – by CEO Hallvard Muri
Slide 4: Positive underlying development
Positive underlying development Order intake • Overall order intake on same level as Q4 2016 -1% 778 48 • Strong quarter for Europe & Middle East with an order intake of 139 MNOK, material contracts in Scotland, Russia and 589 Turkey 561 303 546 557 533 51 SW 31 69 33 53 LBT 441 103 92 • Americas co
Slide 5: High activity across all regions
High activity across all regions Revenue • 24% increase in revenue compared to Q4 2016 +24% • Continued high activity in the Nordic region • Another strong quarter in Americas, revenue more than doubled from Q4 2016 • Land Based delivering on high order backlog, 537 557 510 484 increasing revenue by
Slide 6: Operational leverage taking effect
Operational leverage taking effect EBITDA • EBITDA increase of 150% compared to Q4 2016 +150% • EBITDA margin of 10,8%, up from 5,3 % in Q4 2016 • Another strong quarter in the Nordic region, with ASA Nordic and AKVA Marine Services as the main contributors 65 61 60 54 • Land Based segment ends a st
Slide 7: Tenth quarter in a row with growth in order backlog
Tenth quarter in a row with growth in order backlog Order backlog • Fourth quarter 2017 – Highlights +38% 1 380 1 381 1 318 – Strong platform for further positive development 1 077 537 998 629 620 – Order backlog end of December of 1.38 BNOK 886 822 430 697 412 417 – EBITDA of 60 MNOK in the quarter
Slide 8: Operational leverage and profitable growth
Operational leverage and profitable growth Revenue EBITDA EPS +68% +132% +81% 2 088 240 3,86 1 603 1 425 1 246 135 144 2,13 2,20 103 1,06 2014 2015 2016 2017 2014 2015 2016 2017 2014 2015 2016 2017
Slide 9: Where do we deliver
Where do we deliver AKVA group’s geographical regions Income distribution Q4 2017 23%(13%) 8%(10%) 69%(77%) Nordic Americas Export Nordic AKVA group EME Agents and Distributors Americas
Slide 10: Development in OPEX based revenue
Development in OPEX based revenue 150 35 • Growing revenue in the Marine Service business in Norway is 30,6% contributing to the positive development 28,3% 29,0% 30 27,1% 26,1% 24,7% • The Marine Service business in Chile has started and plans to 23,3% 23,4% 25 grow this segment going forward 100 20
Slide 11: Revenue by product group and species
Revenue by product group and species By product groups – Q4 2017 By species – Q4 2017 Software Non Seafood S&AS Land Based Other species 9,7%(9,9%) 0,1%(0,1%) 8,3%(8,8%) 5,7%(8,4%) Land Based Tech 22,3%(17,2%) 51,6%(54,5%) Cage Based Tech 17,7%(19,4%) 84,6%(81,7%) S&AS Cage Based Salmon Cage Based t
Slide 12: Q4 – Operational Highlights
Q4 – Operational Highlights • Continued positive development in Chile • Encouraging improvement in Russian market • Post smolt: strong pipeline in Norway and improved outlook in other salmon markets as well, but decision processes takes time • Increased focus on the Mediterranean markets for Bass an
Slide 13: Group Strategy
Group Strategy Focused growth and Operational expansion excellence Increased international focus Improvement programs within sourcing, Land based post smolt logistics and manufacturing Expand services and OPEX based Streamline project execution and service business delivery Product portfolio add-ons
Slide 14: Risk management / Atlantis Subsea Farming
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 Q4 2017 – by CFO Simon Nyquist Martinsen
Financial performance Q4 2017 – by CFO Simon Nyquist Martinsen
Slide 16: Q4 2017 – Financial highlights
Q4 2017 – Financial highlights Revenue 557 537 • 24% growth, strong contributions from Americas, Land 510 484 Based and Europe & Middle East 449 393 402 408 • Last twelve months order intake and revenue now at 330 355 354 344 325 2,470 MNOK and 2,088 MNOK respectively 310 301 305 • The order book ha
Slide 17: Q4 2017 – Financial highlights
Q4 2017 – Financial highlights 80 EBITDA (MNOK) • A very strong Q4, which historically has been low season 65 61 60 60 54 40 41 43 41 38 40 32 34 • As in Q3, AKVA Marine Services is a strong contributor to 27 24 27 24 20 13 EBITDA with a total of 11 MNOK in the quarter 0 Q1 Q2 Q3 Q4 • The entities i
Slide 18: Cage Based Technologies
Cage Based Technologies Nordic • Another very strong quarter for AKVA Marine Services Revenue and EBITDA % 400 386 14 • Helgeland Plast and Sperre also growing compared to Q4 2016 350 49 331 12 Americas 300 43 • The activity in Chile has increased during the year, and 121 9,5% 10 the EBITDA for the
Slide 19: Land Based Technologies
Land Based Technologies Revenue and EBITDA % • Low order intake in the quarter as 130 124 12 3 10,8% decisions have been postponed 120 10 8 110 6 • Several good project opportunities both in 100 4 Norway, Scotland and Chile for Q1/Q2 90 2 78 0 80 1 -2 • Revenue increases as projects in the order 70
Slide 20: Software
Software Revenue and EBITDA % • AKVA group Software ends the year 60 30 with a total EBITDA of 14 MNOK, 55 and with an order intake of 42 50 21,5% 46 17,2% 20 MNOK 45 4 1 40 40 1 3 10 • Wise Ehf ends the quarter with an 35 EBITDA of 5 MNOK compared to 4 30 MNOK in the same quarter in 2016 25 0 20 42
Slide 21: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2017 2016 2017 2016 2016 Q4 Q4 YTD Total Total Order backlog 1 381 998 1 381 998 998 Order intake 557 561 2 471 1 952 1 952 • Of which Land Based is 537 MNOK P&L OPERATING REVENUES 557 449 2 088 1 603 1 603 • Increased depreciation mainly due Operating costs ex depre
Slide 22: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 175 180 8,4% 9 150 10 8,8% 134 135 160 7,5% 8,8% 8 9 124 6,8% 6,7% 122 9,4% 115 8 140 131 7 106 107 126 6,2% 102 118 7,7% 98 100 6,5% 7 120 109 6 100 7,1% 7,2% 85 5,5% 6 100 4,3% 5 5,0% 420 5,7% 5 80 4 5,
Slide 23: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown 2017 90 000 14,2% 15 Rental Intangible 80 000 20 579 70 000 11,2% 36 744 60 000 9,5% 10 50 000 6,9% 40 000 5,9% 5,5% 5,9% 78 936 30 000 4,2% 57 368 4,0% 5 20 000 32 853 31 666 10 000 23 114 24 407 24 728 19 495 17 067 130 147 0 0 4Q 2015 1Q 2016 2
Slide 24: Net debt/EBITDA of 1.5
Net debt/EBITDA of 1.5 Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 400 2,0 2,10 Net debt 30.09.2017 278 762 356 EBITDA -59 961 310 298 Income taxes paid 17 900 1,6 1,75 300 279 Net interest paid 2 257 1,5 1,5 1,4 1,4 1,40 Capex 78 936 213 212 200 Acquisitions / Divestments 5 200 17
Slide 25: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 520 40 0,8 500 0,71 500 38,9% 476 0,70 39,6% 38,9% 37,1% 473 0,7 480 31,4% 0,63 460 435 446 29,4% 30 0,58 0,6 460 31,6% 31,3% 437 30,1% 440 428 435 0,49 0,49 0,5 420 20 0,37 0,4 400 0,32 380 0,3 360 1
Slide 26: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 17,8% 18,6% 14,7% 15,4% 16,1% 16,5% 14,0% 13,4% 15,1% 14,6% 12,4% 13,2% 12,7% 11,1% 11,4% 10,9% 9,8% 9,6% 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17
Slide 27: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2017 2016 2017 2016 2016 (NOK 1 000) Q4 Q4 YTD YTD Total Net cash flow from operations 36 153 11 932 195 535 105 596 105 596 Net cash flow from change in w orking capital -42 574 95 646 -122 851 106 050 106 050 Net cash flow from oper
Slide 28: Balance sheet
Balance sheet BALANCE SHEET 2017 2016 (MNOK) 31.12 31.12 ASSETS 1 663 1 376 Intangible non-current assets 596 575 Tangible non-current assets 246 151 Financial non-current assets 7 6 Inventory 238 186 Receivables 459 292 Cash and cash equivalents 117 166 LIABILITIES AND EQUITY 1 663 1 376 Equity 500
Slide 29: 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 30: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 13 203 105 51,1 % EGERSUND GROUP AS NOR Last 12 months 3 900 000 15,1 % WHEATSHEAF INVESTMENT GBR Share price Trading volume VERDIPAPIRFONDET ALFRED BERG NOR 1 199 372 4,6 % 100 50 000 000 525
Slide 31: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 32: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 11 and service exchange countries countries. partner since 2006 over 40 956 years employees
Slide 33: Turn-key solutions
Turn-key solutions Cage Based Technology Land Based Technology Software
Slide 34: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 35: Order backlog and inflow, 2014 through 2017
Order backlog and inflow, 2014 through 2017 Order backlog Order intake 1 380 1 381 778 1 318 1 077 629 998 537 589 304 546 561 557 620 533 886 103 504 72 33 430 822 441 92 460 697 412 417 368 101 89 350 643 417 649 327 348 250 214 57 547 437 504 36 6 80 452 93 283 478 494 264 243 63 286 106 75 118 3
Slide 36: Outlook – AKVA group
Outlook – AKVA group • Continuing positive outlook for most markets • Land Based – focus on post smolt, high quote bank • Execution of improvement programs, manufacturing, sourcing and logistics • Increasing focus outside Nordic Markets • Expanding services and OPEX based business • Product improvem
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Slide 38: Customer focus
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 39: AKVA group
AKVAcRovur