Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2015 Earnings Presentation
29 slides from Akva Group Asa's earnings presentation, May 8, 2015
Slide 1: Q1 2015 Presentation
Q1 2015 Presentation Oslo - May 8th, 2015 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner
Slide 2: Agenda
Agenda 1 Highlights 2 Financial performance 3 Outlook 4 Q&A Your Aquaculture Technology and Service Partner
Slide 3: Highlights Q1 2015 - by CEO Trond Williksen
Highlights Q1 2015 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3
Slide 4: On track - record high order backlog
On track - record high order backlog First quarter 2015 – Highlights • Overall good performance – on track ‐ Benefitting from being a diversified Group both geographically and product vice • Strong first quarter in Chile, Canada and UK • A good start for Cage Based segment in Norway, but ‐ with a di
Slide 5: On track - record high order backlog
On track - record high order backlog Revenue +24% EBITDA +53% MNOK MNOK 310 325 32 27 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Your Aquaculture Technology and Service Partner 5
Slide 6: On track - record high order backlog
On track - record high order backlog Order Inflow Order Backlog +21% +51% MNOK MNOK 520 547 367 452 243 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Your Aquaculture Technology and Service Partner 6
Slide 7: 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
Slide 8: Presence in all main farming regions
Presence in all main farming regions Map of activities Revenue per region, Q1 2015 Export 12 % Americas 21 % Nordic 67 % Nordic Americas Export Your Aquaculture Technology and Service Partner
Slide 9: Strategic priority to increase the proportion of reoccurring revenue
Strategic priority to increase the proportion of reoccurring revenue Technology sale vs reoccurring revenue, Q1 2015 Comments • Introduction of rental business model in Norway in Q4 2014. Already successfully introduced in UK and Canada. • First installations of rental equipment in Norway done in Q1
Slide 10: Revenue by product groups and species
Revenue by product groups and species By product groups – Q1 2015 By species – Q1 2015 Land Non based Seafood 11 % 11 % Software Other 9% Species 9% Cage based Salmon 80 % 80 % Cage based technologies = Cages, barges, feed systems and other Salmon = Revenue from technology and services sold to p
Slide 11: Centralized operations and wireless communication in the hotspot
Centralized operations and wireless communication in the hotspot • Technology trend aimed at improving farming performance by enhancing overview, control and specialized feeding competence through centralized control centers • AKVA group supports the trend through development of the new digital wire
Slide 12: Contract on land based cleaner-fish facility – new sealice prevention technology
Contract on land based cleaner-fish facility – new sealice prevention technology • Contract of 23.5 MNOK signed with Namdal Rensefisk AS for technology to new cleaner-fish production facility – owned and operated by Bjørøya Fiskeoppdrett AS, Aquagen AS, Midt Norsk Havbruk AS and Nova Sea AS • Use of
Slide 13: Financial performance Q1 2015 – by CFO Eirik Børve Monsen
Financial performance Q1 2015 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 13
Slide 14: Q1 2015 - Financial highlights
Q1 2015 - Financial highlights Revenue MNOK 350 330 310 325 301 305 • Good overall financial performance – taking advantage of the 300 diversified operations 250 2012 200 • Rental business in Norway with a good start – with P&L impact 2013 from next quarter 150 2014 100 2015 • Strong balance sheet m
Slide 15: Q1 2015 - Financial highlights, continued
Q1 2015 - Financial highlights, continued EBITDA EBITDA % MNOK MNOK 40 12% 35 10% 30 8% 25 2012 2012 20 6% 15 2013 2013 4% 10 2014 2014 2% 5 2015 0% 2015 - -5 -2% 1Q 2Q 3Q 4Q -10 -4% 1Q 2Q 3Q 4Q • Stabilizing on a historical higher EBITDA-level both in NOK and in % • Medium term target of 10% EBITDA
Slide 16: Cage Based Technologies
Cage Based Technologies CBT (Revenue & EBITDA %) 300 Nordic ● Good start of the year, but with slightly different product mix YoY 17% 259 250 241 Americas 39 15% ● Strong Q1 in Chile - the positive development in this market continues. However we continue to monitor the development 62 closely 200 64
Slide 17: Software
Software SW (Revenue & EBITDA %) 35 31 17% 30 1 26 5 25 1 15% ● AKVA group Software AS continues to deliver stable and 4 high margins – with improved revenue and margins YoY 14,0 % 20 13% ● Wise lausnir ehf have a good start of the year – with improved performance YoY 15 11,4 % 25 11% ● Software con
Slide 18: Land Based Technologies
Land Based Technologies LBT (Revenue & EBITDA %) 50 43 45 2 24% 40 35 ● Overall a slow start for LBT segment in Q1 35 1 30 ● AKVA group Denmark have a good order backlog, 14% however delayed start-up and progress in some 25 projects explains the low margin in LBT in Q1 41 20 ● Plastsveis is on track
Slide 19: Financials – Detailed P & L
Financials – Detailed P & L P&L 2015 2014 2014 (MNOK) Q1 Q1 Total OPERATING REVENUES 325,0 310,4 1 246,1 Operating costs ex depreciations 298,4 278,7 1 142,7 EBITDA 26,6 31,7 103,4 Depreciation 10,5 8,3 35,7 EBIT 16,1 23,5 67,6 Net interest expense -1,3 -1,5 -4,8 • Low interest cost du to low net de
Slide 20: Group financial profile - strong
Group financial profile - strong Available cash ROCE -6 MNOK +3.9 percentage points 15,2 % 14,1 % 12,3 % MNOK 183 8,4 % 153 8,3 % 144 144 147 86 96 63 68 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Your Aquaculture Technology and Service Partner
Slide 21: Group financial profile – strong, continued
Group financial profile – strong, continued Working capital Equity +56 MNOK MNOK 180 0.7 percentage point improvement 25 % MNOK 420 52% 160 20,0 % 140 20 % 400 50% 120 48% 15 % 380 MNOK 100 46% MNOK 11,5 % 10,8 % 44,4 % 80 162 10,1 % 360 137 10 % 44,3 % 42,8 % 44% 60 116 126 340 42% 40 5% 320 40% 20
Slide 22: Net debt/EBITDA of 0.8x
Net debt/EBITDA of 0.8x Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 150 5,0 Net debt 31.12.2014 88 511 122 120 4,0 EBITDA -26 610 4,3 108 Income taxes paid -32 94 3,2 92 90 89 3,0 Net interest paid 1 309 82 75 70 Capex paid 10 994 2,4 Paid dividend - 60 2,0 1,6 44 Sale of fixed ass
Slide 23: Balance sheet
Balance sheet BALANCE SHEET 2015 2014 (MNOK) 31.03 31.03 ASSETS 942 782 Intangible non-current assets 274 245 Tangible non-current assets 76 56 Financial non-current assets 2 2 Inventory 183 151 Receivables 349 266 Cash and cash equivalents 57 62 LIABILITIES AND EQUITY 942 782 Equity 402 344 Minorit
Slide 24: CAPEX
CAPEX Capex (TNOK) and capex / sales (%) CAPEX breakdown Q1 2015 (TNOK) 20 000 18 633 20% 18 000 18% 15 621 16 000 16% 8 898 14 000 14% 12 266 12 000 10 982 11 017 10 994 12% 2 096 10 000 8 628 9 133 10% 8 000 8% 6 138 6% 6% 6 000 5% 5% 6% 4% 3% 3% 3% 4 000 3% 4% 2 000 2% 0 0% Ordinary CAPEX includi
Slide 25: Outlooks – by CEO Trond Williksen
Outlooks – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 25
Slide 26: Order backlog and inflow – Highest order backlog ever
Order backlog and inflow – Highest order backlog ever Order backlog Order inflow MNOK MNOK 600 547 500 467 460 520 504 450 500 452 400 367 400 2012 350 2012 300 2013 243 2013 300 250 2014 200 2014 200 2015 150 2015 100 100 50 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Highest order backlog ever The good market
Slide 27: Maintaining positive outlook
Maintaining positive outlook ● Strong overall short term outlook due to high market activity and order backlog. Our target is to outperform 2014 ● Strong demand in the Nordic market is expected to continue ● Positive operational development in the Chilean market is expected to continue in the next q
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