Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2015 Earnings Presentation
28 slides from Akva Group Asa's earnings presentation, Aug 20, 2015
Slide 1: Q2 2015 Presentation
Q2 2015 Presentation Oslo - August 20th, 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 Q2 2015 - by CEO Trond Williksen
Highlights Q2 2015 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3
Slide 4: Best quarter & best first half ever – improved performance and growth continues
Best quarter & best first half ever – improved performance and growth continues Second Quarter 2015 – Highlights • Best Q2 and best Q ever • All business segments and regions with good performance and positive development • Chile – good profitability in Q2 – well underway in adjusting for challenges
Slide 5: Best quarter & best first half ever: revenue and EBITDA
Best quarter & best first half ever – improved performance and growth continues Revenue +33% EBITDA +70% MNOK MNOK 402 41 301 24 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Your Aquaculture Technology and Service Partner 5
Slide 6: Best quarter & best first half ever: order inflow and backlog
Best quarter & best first half ever – improved performance and growth continues Order Inflow Order Backlog +3% +7% MNOK MNOK 478 493 327 348 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Your Aquaculture Technology and Service Partner 6
Slide 7: AKVA group – uniquely positioned for further growth
AKVA group – uniquely positioned for further growth • The most recognized brand in aquaculture technology • Leading technology solutions and service partner to the global aquaculture industry • Global presence - subsidiaries in 8 countries • 701 employees • Market cap of NOK ~700m and net debt of NO
Slide 8: Presence in all main farming regions
Presence in all main farming regions Map of activities Revenue per region, Q2 2015 Export 14 % Americas 18 % Nordic 68 % Nordic Americas Export Your Aquaculture Technology and Service Partner
Slide 9: Strategic priority to increase the proportion of recurring revenue
Strategic priority to increase the proportion of recurring revenue Technology sale vs recurring revenue, Q2 2015 Comments • Aim of increasing relative share of recurring revenue through software and services – by developing software, farming services, technology services and rental further • Introdu
Slide 10: Revenue by product groups and species
Revenue by product groups and species By product groups – Q2 2015 By species – Q2 2015 Land based Non 14 % Seafood 10 % Other Software Species 8% 10 % Cage based Salmon 78 % 80 % Cage based technologies = Cages, barges, feed systems and other Salmon = Revenue from technology and services sold to
Slide 11: New product launches during AQUA NOR
New product launches during AQUA NOR • Several releases of new technologies and products during AQUA NOR, among them AKVACONNECT feeding • New software solution for feeding control and management, replacing AKVAControl • Integration into the AKVAconnect automation platform, enabling a complete and d
Slide 12: Financial performance Q2 2015 – by CFO Eirik Børve Monsen
Financial performance Q2 2015 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 12
Slide 13: Q2 2015 - Financial highlights
Q2 2015 - Financial highlights Revenue MNOK 450 400 • Good overall financial performance – taking advantage of the 350 diversified operations 300 2012 250 • Reducing cost / exposure in Chile again 200 2013 2014 150 • Strong balance sheet maintained - with improved working capital 100 2015 level 50 -
Slide 14: Q2 2015 - Financial highlights, continued
Q2 2015 - Financial highlights, continued EBITDA EBITDA % MNOK MNOK 45 12% 40 35 10% 30 8% 25 2012 2012 6% 20 2013 2013 15 4% 2014 2014 10 2% 5 2015 2015 0% - 1Q 2Q 3Q 4Q -5 -2% - 10 -4% 1Q 2Q 3Q 4Q • Stabilizing on a historical higher EBITDA-level both in NOK and in % • Medium term target of 10% EB
Slide 15: Cage Based Technologies
Cage Based Technologies CBT (Revenue & EBITDA %) 350 Nordic 315 17% ● Good first half 2015 300 ● Slightly different product mix compared to 2014. A wider range of 54 products contribute to revenue and profit in 2015 vs 2014. 15% 250 238 ● Good order backlog 32 66 13%Americas 200 ● Strong H1 in Chile
Slide 16: Software
Software SW (Revenue & EBITDA %) 35 31 17% 30 1 26 6 25 0 15,4 % 15% ● AKVA group Software AS continues to deliver 5 stable and high margins – with improved revenue and margins YoY 20 13% 12,9 % ● Wise lausnir ehf had a good first half 2015 – 15 with improved performance YoY 11% 24 ● Software contin
Slide 17: Land Based Technologies
Land Based Technologies LBT (Revenue & EBITDA %) 60 55 2 50 24% 40 37 ● Improved performance YoY and QoQ 1 14% ● Good recovery in Q2 for AKVA group Denmark A/S after a slow start of 30 the year in Q1. Continued good 54 order backlog 6,1 % 20 35 4% ● Plastsveis AS on track with profitable first half
Slide 18: Financials – Detailed P & L
Financials – Detailed P & L P&L 2015 2014 2015 2014 2014 (MNOK) Q2 Q2 YTD YTD Total OPERATING REVENUES 401,5 300,9 726,5 611,3 1 246,1 Operating costs ex depreciations 360,7 276,9 659,1 555,6 1 142,7 EBITDA 40,9 24,0 67,5 55,8 103,4 • Low interest cost due to low Depreciation 10,8 8,9 21,3 17,2 35,7
Slide 19: Group financial profile – remains strong
Group financial profile – remains strong Available cash ROCE +6.9 percentage points +13 MNOK 15,2 % 15,2 % 14,1 % 12,3 % 8,3 % MNOK 183 153 147 157 144 144 86 96 68 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Your Aquaculture Technology and Service
Slide 20: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Working capital Equity 2.0 percentage point improvement +52 MNOK MNOK 160 20 % MNOK 140 18 % 15,7 % 16 % 120 12,4 % 14 % 100 10,8 % 10,4 % 12 % MNOK 80 10 % 136 137 145 60 129 8% 6% 40 4% 20 2% 0 0% 4Q13 3Q14 2Q13 3Q13 1Q14 2Q14 4Q14 1Q15 Improve
Slide 21: Net debt/EBITDA of 0.7x
Net debt/EBITDA of 0.7x Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 120 4,0 108 94 Net debt 31.03.2015 82 416 92 90 3,2 89 3,0 EBITDA -40 855 82 75 76 Income taxes paid 3 362 70 Net interest paid 1 473 2,4 60 2,0 Capex paid 16 037 1,6 44 Paid dividend - 1,3 1,0 Sale of fixed assets
Slide 22: Balance sheet
Balance sheet BALANCE SHEET 2015 2014 (MNOK) 30.06 30.06 ASSETS 1 007 796 Intangible non-current assets 266 263 Tangible non-current assets 83 65 Financial non-current assets 2 2 Inventory 203 129 Receivables 385 283 Cash and cash equivalents 67 54 LIABILITIES AND EQUITY 1 007 796 Equity 415 363 Min
Slide 23: CAPEX
CAPEX Capex (TNOK) and capex / sales (%) Your Aquaculture Technology and Service Partner 23
Slide 24: Outlooks – by CEO Trond Williksen
Outlooks – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 24
Slide 25: Order backlog and inflow
Order backlog and inflow Order backlog Order inflow MNOK MNOK 600 500 450 500 400 400 350 2012 2012 300 300 2013 250 2013 2014 200 2014 200 150 2015 2015 100 100 50 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Highest order inflow and order backlog ever after a second quarter The good market activity continues Y
Slide 26: Maintaining positive outlook
Maintaining positive outlook ● Strong overall short term outlook due to high market activity and order backlog. Our target remains to outperform 2014 ● Strong demand in the Nordic market is expected to continue, with shift towards more investment in Land Based Technology ● UK and Canada are expected
Slide 27: Q&A
Q&A Your Aquaculture Technology and Service Partner 27
Slide 28: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner