Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2024 Earnings Presentation
48 slides from Akva Group Asa's earnings presentation, Nov 7, 2024
Slide 1: Q3 2024 Presentation
Q3 2024 Presentation Klepp, 7 November 2024 Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 2: Pioneering a better future
Pioneering a better future AKVAcrour
Slide 3: Agenda | Q3 2024
Agenda|Q3 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 4: Highlights | Q3 2024
Highlights|Q3 2024 ▪ High activity with revenue of MNOK 936 and order intake of MNOK 803 ▪ Solid financial performance with EBIT of MNOK 78 ▪ Awarded LOI from Cermaq related to RAS contract for new post smolt facility in Chile with estimated contract value of MEUR 30 ▪ Acquisition of 100% ownership
Slide 5: Key figures | Q3 2024
Key figures|Q3 2024 Revenue EBITDA EBIT 936 MNOK 128 MNOK 78 MNOK 128 ** 78 ** 936 ** 58 840 105 806 817 738 32 29 79 78 25* -59 * Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 ** Revenue in Q3 24 is adjusted for the gain of MNOK 75.6 related ** EBITDA in
Slide 6: Key figures | YTD Q3 2024
Key figures|YTD Q3 2024 Revenue EBITDA EBIT 2 734 MNOK 305 MNOK 162 MNOK 305 ** ** 2 734** 284 162 2 596 2 631 2 420 241 138 2 289 223 101 77 131 * Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 -42 * Q3 20 Q3 21 Q3 22 Q3 23 Q3 24 ** Revenue in YTD Q3 24 is adjusted for the gain of MNOK
Slide 7: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) Revenue expectations Q4/2024 ▪ Overall approx. BNOK 3.6 in expected 917 888 2 609 2 599 revenue for 2024 (5% growth vs 2023) 45 26 150 2 396 158 2 417 2 367 72 803 150 150 147 149 30 718 138 ▪ Approx. MNOK 600 in rev
Slide 8: Strategic and Operational Status
Strategic and Operational Status Pioneering a better future
Slide 9: Traditional farming technology & area out of capacity
Traditional farming technology & area out of capacity - New technology needed to bridge the demand 7 000 000 Consumption growth 5.0% 6 000 000 5 000 000 4 000 000 Traditional cage production growth 1.5% 3 000 000 2 000 000 1 000 000 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Slide 10: Growth possibilities in salmon production during the next decade
Growth possibilities in salmon production during the next decade Traditional coastal Offshore Closed coastal Super-exposed Semi-offshore Post smolt and full cycle on land Pioneering a better future Source: Salmar Aker Ocean
Slide 11: Long production time in sea is driving higher mortality and production costs
Long production time in sea is driving higher mortality and production costs Observed correlation between production time and correlation of diseases ▪ Data from over 5000 production cycles (Norway) ▪ A rising trend for both diseases and lice treatments as the time fish spend at sea increases Bar pl
Slide 12: Conclusions – strategy to reduce mortality
Conclusions – strategy to reduce mortality ▪ A viable productions strategy will be to reduce production time in open sea cage farming. This will likely lead to reduced no of treatments, better fish health and lower mortality. ▪ A postsmolt strategy either on land or closed in sea is today available
Slide 13: Precision Farming - Sea Based Solutions
Precision Farming - Sea Based Solutions - From advanced, tailored marine infrastructure to single components and products Marine Precision Deep farming Infrastructure Feeding & Lice control - quality equipment for better - for optimizing fish - reducing lice problems operations performance, feed con
Slide 14: Deep farming concept - Nautilus
Deep farming concept - Nautilus - Can solve one of the biggest sustainability challenges in aquaculture: salmon lice Important innovations Digital support Airdome Waterborne feeding NAUTILUS Pioneering a better future
Slide 15: Post-smolt RAS concept is validated
Post-smolt RAS concept is validated There are significant benefits from a post smolt strategy: ▪ Reduced time in the sea means less lice treatment and improved fish health ▪ Better utilization of licenses provides improved volume with 30% or higher dependent on the size of the post smolt ▪ AKVA has
Slide 16: NOAP phase II has started
NOAP phase II has started ▪ Construction of NOAP phase I is completed early Q2 with an annual capacity of 4,000t. Financial closure of the project was done in Q2 ▪ NOAP phase II is initiated with additional annual capacity of 4,000t ▪ Phase II to be executed towards end of 2024 and during 2025 ▪ AKV
Slide 17: Expected activity level Land Based
Expected activity level Land Based ▪ Total order backlog of BNOK 1,5 ▪ With main basis in order backlog the expected activity level for 2024 will be approx. MNOK 600 – Soft activity level in first half of 2024 due to closing of “old” projects and slowly start up of new projects – Project margins wil
Slide 18: Our digital solutions
Our digital solutions We are present in all the world's markets ▪ 112 sites worldwide on ▪ Global market share of 60% ▪ 383 modules worldwide on ▪ 23 sites worldwide on recurring revenue model recurring revenue model recurring revenue model - A complete platform that enables precision farming on the
Slide 19: Medium term financial targets
Medium term financial targets Revenue growth Profitability EBIT enablers ➢ 2024: Min. 5% growth (BNOK 3,6) but ➢ 2024: EBIT approx. MNOK 185 /5% ➢ Operational excellence no growth in Land Based ➢ Cost reduction program implemented ➢ 2025: min. 6% EBIT 2023 ➢ Long term: Organic topline growth of ➢ Sc
Slide 20: Agenda | Q3 2024
Agenda|Q3 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 21: Q3 2024 – Income statement
Q3 2024 – Income statement ▪ Adjusted for MNOK 76 related to the NOK million 2024 2023 2024 2023 2023 Q3 Q3 YTD YTD Total Observe transaction revenues increased Revenue 1 011 817 2 810 2 631 3 432 by MNOK 118 compared to Q3 23 Cost of materials 523 467 1 539 1 561 1 996 Payroll expenses 233 220 719
Slide 22: Revenue and order intake development
Revenue and order intake development ▪ Last twelve months order intake and revenue was Revenue and order intake (MNOK) MNOK 3,326 and MNOK 3,534, respectively Revenue Order intake 1 014 ▪ Revenue increased by 14,5% compared to Q3 23 917 936 888 and revenue increased in all three business 817 800 803
Slide 23: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market (MNOK) Revenue by Segment (MNOK) 1 014 1 014 35 936 57 936 137 34 99 64 817 800 817 33 784 162 800 784 64 40 37 40 50 55 171 124 96 142 101 109 178 86 180 175 154 842 740 688 660 618 646 629 AustralAsia 502 466 489 Europe & Middle East Digital Americas
Slide 24: EBITDA development
EBITDA development ▪ Solid performance in the quarter and EBITDA EBITDA margin increased from 9,5% in Q3 23 to 13,7% 13,7% in Q3 24 130,0 14,0 120,0 13,0 110,0 12,0 10,8% ▪ Strong EBITDA margin of 15,2% in Sea Based 100,0 9,5% 11,0 10,0 90,0 8,6% 9,0 80,0 ▪ Improved profitability in Land Based partl
Slide 25: Cash flow and financial position
Cash flow and financial position Available cash (MNOK) Net Working capital Net debt / EBITDA* 1 800 4,35 4,33 4,55 600 600 11,3% 12 4,02 4,20 526 519 10,4% 11 1 600 3,66 3,85 500 500 10 1 400 448 1 307 1 268 1 265 3,50 8,6% 9 1 200 2,96 3,15 400 400 377 7,3% 8 1 088 1 109 355 2,80 7 491 478 464 6,2%
Slide 26: Net interest-bearing debt development
30.06.2024 1 268 EBITDA 128 Net interest 26 Corporate taxes 15 Pioneering a better future Change WC 92 CAPEX 46 New IFRS 16 liability 10 NIBD Q3 2024 (MNOK) New debt - Observe transaction 150 0 Currency & Other 30.09.2024 1 265 31.12.2023 1 109 EBITDA 305 Net interest 71 Corporate taxes 22 Change WC
Slide 27: Capital expenditure
Capital expenditure CAPEX (MNOK) ▪ Total CAPEX of MNOK 46 in Q3 24 - MNOK 21 applies to our three innovation agendas - MNOK 7 is related to the new global ERP system ▪ CAPEX year to date of MNOK 129 50 2 46 44 3 8 35 33 8 3 48 44 36 28 30 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Growth Maintenance Pioneering a
Slide 28: Dividend
Dividend Cash dividend (NOK per share) ▪ The company has decided not to pay any dividend for the second half year of 2024 1,00 1,00 0,00 0,00 2021 2022 2023 2024 Pioneering a better future
Slide 29: Business segments
Business segments Pioneering a better future
Slide 30: Sea Based Technology
Sea Based Technology Overall Revenue (MNOK) and EBITDA-margin (%) ▪ Revenue increased by 27%, and EBITDA margin increased from 11,9% in Q3 23 to 15,2% in Q3 24 1 300 18 ▪ Order intake increased from MNOK 574 in Q3 23 to MNOK 635 1 200 16 in Q3 24 1 100 15,2% 14 1 000 Nordic 900 11,9% 12 ▪ Revenue in
Slide 31: Sea Based order intake and backlog development
Sea Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 900 2 800 2 700 946 792 816 2 600 731 711 2 500 800 713 2 400 574 679 635 2 300 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 12M Revenue 12M Order Intake Order Backlo
Slide 32: Development OPEX based revenue
Development OPEX based revenue ▪ OPEX based revenue was 39,6% of total Sea Based Revenue (MNOK) revenue in Q3 2024 400 45 42,5% 41,0% 39,6% 350 37,4% 40 ▪ Positive momentum continues and OPEX based 33,9% 35 300 revenue was MNOK 23 higher in Q3 24 compared 30 to Q3 23 250 25 200 20 150 293 271 285 26
Slide 33: Land Based Technology
Land Based Technology ▪ Order intake of MNOK 138 in Q3 is primarily related to Revenue (MNOK) and EBITDA-margin (%) increase in order value on the existing order backlog 300 18 16 ▪ Improved activity level and revenue increased by 30% in 14 Q3 24 compared to Q3 23 12 10 200 ▪ EBITDA improved by MNOK
Slide 34: Land Based order intake and backlog development
Land Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 000 1 500 1 000 1 728 1 451 1 509 1 495 1 454 500 72 149 138 0 4 0 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 12M Revenue 12M Order Intake Order Backlog Order Inta
Slide 35: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) ▪ Order intake of MNOK 30 is MNOK 9 higher than the same quarter last year 65 35 60 31,9% 55 29,9% 30 ▪ Increase in revenue of 2,2% compared to Q3 23 50 25 45 40 ▪ EBITDA margin at same level as last year 34 20 35 33 2 3 30 15 25 12 12 20 10 15 EBITDA % 1
Slide 36: Digital order intake and backlog development
Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 200 180 160 140 158 120 150 150 147 150 100 80 60 45 40 30 21 26 40 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 12M Revenue 12M Order Intake Order Backlog Order Intake P
Slide 37: Outlook
Outlook Pioneering a better future
Slide 38: Outlook
Outlook ▪ Salmon prices expected to remain strong driven by reduced supply ▪ AKVA expects to see normalization of the post smolt market in Norway into 2025 ▪ AKVA is aiming for revenue of minimum BNOK 3.6 and EBIT of 5% in 2024 ▪ AKVA will continue to invest and improve our solutions, both within Se
Slide 39: Disclaimer
Disclaimer ▪ All opinions and statements in this notice are, regardless of source, given in good faith, and may only be valid as of the stated date of this notice and may be subject to change without notice. AKVA group has taken all reasonable steps to ensure that the information contained in this n
Slide 40: Agenda | Q3 2024
Agenda|Q3 2024 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 41: Appendix
Appendix Pioneering a better future
Slide 42: AKVA group in a brief
AKVA group in a brief AKVA group is the leading technology and service partner to the aquaculture industry worldwide. Listed on Oslo Total turnover in 1.409 employees Companies in 12 Technology leader stock exchange 2023: countries through 40 years since 2006 NOK 3.4 billion Pioneering a better futu
Slide 43: Our presence
Our presence Present in all markets with offices in: ▪ Norway ▪ Denmark ▪ Scotland ▪ England ▪ Lithuania ▪ Spain ▪ Greece ▪ Turkey ▪ Chile ▪ Canada ▪ China ▪ Australia Pioneering a better future
Slide 44: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2024 2023 2023 30.9. 30.9. 31.12. Intangible fixed assets 1,3 1 576 670 1 095 311 1 157 266 Deferred tax assets 78 694 62 202 72 464 Tangible fixed assets 647 423 639 757 671 833 Long-term financial assets 2 284 15
Slide 45: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2024 Q3 2023 Q3 2024 YTD 2023 YTD 2023 Total Profit before taxes 98 000 -3 359 141 475 23 855 -29 309 Taxes paid -2 254 544 -9 749 -11 760 -12 399 Share of profit(-)/loss(+) from associa
Slide 46: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 18 703 105 51,0 % EGERSUND GROUP AS NOR 6 600 192 18,0 % Israel Corporation Ltd ISR Last 12 months 2 201 022 6,0 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR Share price Trading volume 1 703 050 4,
Slide 47: Our Values
Our Values - We CARE for our industry and the communities we are localized Customer focus Aquaculture knowledge Reliability Enthusiasm Pioneering a better future
Slide 48: Pioneering a better future
Pioneering a better future AKVAcrRour