Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2022 Earnings Presentation
47 slides from Akva Group Asa's earnings presentation, May 13, 2022
Slide 1: Q1 2022 Presentation
Q1 2022 Presentation Klepp, 13 May 2022 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Technology for sustainable biology
Technology for sustainable biology
Slide 3: Agenda | Q1 2022
Agenda|Q1 2022 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 4: Highlights | Q1 2022
Highlights|Q1 2022 Operation Innovation and Digital High market activity with order intake of MNOK 1,048 in the Good momentum on developing capabilities within Land quarter Based technology and advisory services Negative EBIT impact from cost inflations and supply chain High focus on further
Slide 5: Key figures | Q1 2022
Key figures|Q1 2022 Revenue EBITDA EBIT 849 MNOK 102 MNOK 59 MNOK 102 97 852 849 59 86 752 83 * 719 49 589 59 37 38 36 * Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 5 * Note: Costs of 49,7 MNOK related to cyber-attack in Q1 21 are excluded Technology for
Slide 6: Implications of major macro events
Implications of major macro events The Russia-Ukraine conflict has intensified the inflation and supply chain restrictions worldwide and has significant implications for AKVA’s profitability Examples include: – Exponential increase in freight rates – High energy prices – Increased price level on
Slide 7: Market development
Market development Source: Pareto Seafood Price Update 28.04.2022 7 Technology for sustainable biology
Slide 8: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 048 1 813 1 862 1 849 35 67 1 740 85 55 1 650 880 66 254 72 29 116 741 948 829 651 616 21 27 929 867 726 14 69 34 19 Digital 735 759 Digital 693 Land Based 569 563 935 Land Based Sea Based 829 848 808 852 Sea Based
Slide 9: Strategic Status
XO Strategic Status
Slide 10: Underlying demand growth implies 1–2 million ton volume increase by 2030
Underlying demand growth implies 1–2 million ton volume increase by 2030 Salmon demand has increased by 1.1 mill tons from 2009-2019. “Base case” assumes similar demand growth till 2030 Consumption of salmon WFE in mill. tons Key demand drivers 5.0 High demand growth (~5%)1 2019-2030: Base case pric
Slide 11: The paradigm shift of land-based farming will require major capex investments
The paradigm shift of land-based farming will require major capex investments until 2030 and beyond Mill. tons WFE +5.1% 4.5 • Restricted fresh supply requires market effort to 1.9 convert demand from fresh to frozen AKVA Group implications: Europe 2.6 Demand NAM 1.3 1.0 • Asian markets critical for
Slide 12: Three main segments within land based
Three main segments within land based Smolt: Post-smolt: Grow-out: 100 - 250 g 250 - 1000 g 5000 g Smolt production expected ~160 BNOK in CAPEX to grow with approx. investments needed to reach 300,000 tons in the next 10 land-based capacity of years 800,000 tons by 2030 12 Technology for sustain
Slide 13: Strategy for Land Based Salmon Farming
Strategy for Land Based Salmon Farming Delivering complete scope of fish Market leading Zero Water Concept farming technology (e.g. feeding, fish 1 RAS enabling sustainable and cost- 2 tanks, fish handling, camera, lights, effective production sensors, control system) Data driven insight and intelli
Slide 14: Precision Farming Sea Based Solutions
Precision Farming Sea Based Solutions Marine Precision Feeding Digital Deep farming Infrastructure for optimizing feed to support precision to minimize number for secure containment conversion and growth farming with leading, of lice treatments and efficient operations open and modular Barges digi
Slide 15: High focus to further develop deep farming concepts
High focus to further develop deep farming concepts Benefits from deep farming AKVA’s current commercial solutions Avoid or reduce unwanted surface influences like lice, algae, ATLANTIS currents, high temperatures.™ NAUTILUS TUBENET™ SUBSEA FARMING Better fish health and reduced mortality Impr
Slide 16: Key digital trends in Aquaculture - Fusing
Key digital trends in Aquaculture - Fusing Remote Land based Operations Farming Digital Products & Precision Fish Services Farming Sea Based Business Farming Ecosystem Technology for sustainable biology
Slide 17: Current digital solutions
Current digital solutions 17 Technology for sustainable biology
Slide 18: Digital – Strengthened Capabilities
Digital – Strengthened Capabilities Digital Leadership Product Management Architecture and Innovation disciplines UX and Front-End Developers Digital Business Development Acquisition of 33,67% stake in Observe Technologies 18 Technology for sustainable biology
Slide 19: Strategic guidance
Strategic guidance Organic topline Operational Deliver min. 25% Min. 50% increase in 3 Digital platforms: growth excellence EBIT-increase Y-o-Y Innovation spending AKVA Connect, to support new AKVA Observe and Step by step improve Product development AKVA Fishtalk ROACE to min. 15% by and Organi
Slide 20: Agenda | Q1 2022
Agenda|Q1 2022 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 21: Q1 2022 – Income statement
Q1 2022 – Income statement 2022 2021 2021 Revenue increased by MNOK 130 compared to Q1 21 NOK million Q1 Q1 Total Revenue 849 719 3 122 EBITDA 102 33 252 EBIT increased by MNOK 23 from MNOK 36 in Q1 21 EBITDA margin 12,1 % 4,6 % 8,1 % to MNOK 59 in Q1 22 EBITDA ex. cyber-attack costs1 102 83 302
Slide 22: Revenue development
Revenue development Revenue increased by 18% compared to Q1 21 Revenue (MNOK) 833 849 Last twelve months order intake and revenue of MNOK 832 3,285 and MNOK 3,251, respectively 719 738 Increased activity in all three business segments in Q1 22 compared to Q1 21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 22
Slide 23: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 832 833 849 849 18 21 21 832 833 21 64 719 97 738 61 151 719 738 14 20 161 133 19 102 11 151 115 115 112 149 100 130 84 156 144 716 650 676 590 603 548 584 512 AustralAsia 427 465 Europe & Middle East Digital Americas
Slide 24: EBITDA and EBIT development
EBITDA and EBIT development EBITDA of MNOK 102 / 12,1% in Q1 22 EBITDA EBIT 6,9% 120,0 13,0 120,0 7,0 12,1% Challenging profit margins in the quarter 110,0 11,5% 12,0 110,0 6,5 10,7% due to supply chain restrictions and cost 100,0 11,0 100,0 6,0 inflations. Examples include: 90,0 9,5% 10,0 90,0
Slide 25: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA* 700 600 12,6% 13 1 800 4,1 4,20 12,1% 12,1% 3,9 11,6% 12 603 1 600 3,85 600 561 500 11 3,4 3,50 10 1 400 3,1 3,0 3,15 500 469 409 1 252 1 204 400 375 9 1 200 1 130 2,80 8,2% 368 362 8 400 1 000 934 971 2,45 7 519
Slide 26: Development return on capital employed
Development return on capital employed ROACE* (%) ROACE increased from 5,6% in Q4 21 to 8,1% in Q1 15 22 Target of minimum 15% in 2023 remains unchanged 10 15,0% 5 8,1% 7,4% 6,6% 5,1% 5,6% 0 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 2023 target ROACE is calculated with the average balance sheet items last
Slide 27: Dividend
Dividend A dividend of NOK 1 per share was paid in Q1 2022 Cash dividend (NOK per share) 1,75 1,50 1,00 1,00 1,00 2018 2019 2020 2021 Q1 2022 27 Technology for sustainable biology
Slide 28: Business segments
XO Business segments
Slide 29: Sea Based Technology
Sea Based Technology • Revenue and order intake increased by 15% and 34% in Q1 22 Revenue (MNOK) and EBITDA-margin (%) compared to Q1 21 1 000 13,9% 14 Nordic 13 900 • Revenue increased by 19% in Q1 22 compared to Q1 21 12 • Total order intake of MNOK 353 and 16% higher than Q1 21 800 11,7% 11 700 6
Slide 30: Development OPEX based revenue
Development OPEX based revenue Recurring revenue was MNOK 12 lower in Q1 22 Revenue (MNOK) compared to Q1 21 300 39,5% 40 • Adjusted for the sale of AKVA Marine Services (Q3 21) the recurring revenue increased by MNOK 7 35 250 32,9% 31,4% 31,3% 30 27,5% Acceptable activity level at the service s
Slide 31: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) • Order intake of MNOK 255 in the quarter compared to MNOK 69 in Q1 21 160 26 151 150 0 0 24 • Revenue increased by 32% in Q1 22 compared to Q1 21 140 22 130 20 115 • Progress according to plan on the full grow out project for Nordic 120 2 0
Slide 32: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) Revenue increased by 50% in Q1 22 compared to Q1 21 50 35 34,0% Reduced EBITDA margin related to ramp-up of organization and 45 30 investment in digital capabilities 40 35 25 30 20,2% 20 25 22 1 15 EBITDA % 20 Europe&Middle East 7 15 14 Americas 1 10
Slide 33: Outlook
XY Outlook
Slide 34: Outlook
Outlook Salmon prices expected to remain strong driven by reduced supply. On the other hand, uncertainty related to supply chain restrictions and cost inflations may impact the profitability Order backlog is solid and forms a good foundation to execute our organic growth strategy Long term fun
Slide 35: Agenda | Q1 2022
Agenda|Q1 2022 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 36: 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 37: Appendix
Appendix
Slide 38: 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 1 453 years employees
Slide 39: Our presence
Our presence AKVA group Technology for sustainable biology
Slide 40: Solutions
Solutions Sea Based Land Based Digital Technology for sustainable biology
Slide 41: Revenue by species
Revenue by species Revenue by Species (MNOK) 832 833 849 41 51 60 719 65 738 60 40 20 49 36 64 725 722 749 664 625 Non seafood Other species Salmon Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 41 Technology for sustainable biology
Slide 42: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2022 31.3. 2021 31.3. 2021 31.12. Intangible fixed assets 1,3 950 561 1 033 874 934 157 Deferred tax assets 13 627 3 078 11 229 Fixed assets 632 605 736 389 642 568 Long-term financial assets 340 670 179 240 342 19
Slide 43: Cash flow statement
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2022 2021 2021 Cash flow (NOK 1 000) Q1 Q1 Total Cash flow from operating activities statement Profit before taxes 47 368 -30 690 2 548 Taxes paid -10 265 -8 462 -34 683 Share of profit(-)/loss(+) from associates 4 405 -2 112 -8 461 Net interest cost 10
Slide 44: 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 Last 12 months 6 600 192 18,0 % Israel Corporation Ltd ISR Share price Trading volume 1 428 634 3,9 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 100 25 000 0
Slide 45: Dividend policy
Dividend policy 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 Board will take into consideration expected
Slide 46: Customer focus
CUSTOMER FOCUS AQUACULTURE Xo KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 47: AKVA group
AKVAcRour