Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2016 Earnings Presentation
33 slides from Akva Group Asa's earnings presentation, May 11, 2016
Slide 1: Q1 2016 Presentation
Q1 2016 Presentation Oslo - May 11th, 2016 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 2016 - by CEO Trond Williksen
Highlights Q1 2016 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3
Slide 4: On track – with a good start of the year
On track – with a good start of the year First Quarter 2016 – Highlights • All business segments are performing well – best Q1 ever 400 12,0 % 350 10,1 % • A broad mix of products and services contribute financially – becoming a 300 10,0 % stronger and more diversified Group 8,2 % 8,0 % 250 • Mid te
Slide 5: Improved performance year on year
Improved performance year on year Revenue +21% EBITDA +33% MNOK MNOK 393 325 40 27 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Your Aquaculture Technology and Service Partner 5
Slide 6: Growth in order backlog continues
Growth in order backlog continues Order Inflow Order Backlog +20% +28% MNOK MNOK 697 441 547 367 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 The large Land based contract of ~ MNOK 186 (MDKK 150) announced in a stock notice on April 4th, 2016 is not in
Slide 7: AKVA group – uniquely positioned for future growth
AKVA group – uniquely positioned for future growth Leading technology solutions and service partner to the global aquaculture industry Global presence - subsidiaries in 8 countries 669 employees Market cap of NOK ~1500m and net debt of NOK 71m Your Aquaculture Technology and Service Partner
Slide 8: Presence in all main farming regions
Presence in all main farming regions Map of activities Revenue per region, Q1 2016 Export 13 % Americas 10 % Nordic 77 % Nordic Americas Export Your Aquaculture Technology and Service Partner
Slide 9: Strategic priority to increase the proportion of OPEX based revenue
Strategic priority to increase the proportion of OPEX based revenue OPEX based vs CAPEX based revenue, Q1 2016 Comments • OPEX based revenue defined as our revenue booked as OPEX in our customers P&L • Aim of increasing relative share of OPEX based revenue through OPEX based revenue software and ser
Slide 10: Revenue by product groups and species
Revenue by product groups and species By product groups – Q1 2016 By species – Q1 2016 Land based Non 20 % Seafood 11 % Other Species 11 % Software 9% Cage based Salmon 71 % 78 % Cage based technologies = Cages, barges, feed systems and other Salmon = Revenue from technology and services sold to
Slide 11: AKVA Marine Services AS – our new Farming Services vehicle
AKVA Marine Services AS – our new Farming Services vehicle • AKVA group ASA acquired 58% of AD Offshore AS on April 7th, 2016 • The acquisition of AD Offshore AS was a natural step in AKVA group’s strategy to strengthen its position in the aquaculture industry service segment. We expect this market
Slide 12: AKVA Marine Services AS – Signed LOI with Techno Dive
AKVA Marine Services AS – Signed LOI with Techno Dive • AKVA Marine Services AS entered into a letter of intent regarding a possible acquisition of an inshore/offshore diving and aquaculture farming services provider Techno Dive AS on May 10th, 2016. The parties aim to complete customary due diligen
Slide 13: Plastsveis – exercising call option to buy the remaining 30% of the shares
Plastsveis – exercising call option to buy the remaining 30% of the shares • AKVA group ASA has exercised a call option to buy the remaining 30% of the shares in Plastsveis • The option could be exercised from January 2016 and onwards. • The call option was exercised in March 2016 and the transactio
Slide 14: Atlantis Subsea Farming AS
Atlantis Subsea Farming AS • Established in partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS – 33.3% of the shares each on February 1st, 2016 • Purpose of developing submersible fish-farming facilities for salmon on an industrial scale • Has applied for six development licences
Slide 15: Financial performance Q1 2016 – by CFO Eirik Børve Monsen
Financial performance Q1 2016 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 15
Slide 16: Q1 2016 - Financial highlights
Q1 2016 - Financial highlights Revenue MNOK • 17.9% ROCE – profitable operations combined with strong capital 450 discipline in all units 400 350 • All segments contributing to positive financial performance - taking 300 2013 250 2014 advantage of a diversified operation 200 2015 • Land based on tra
Slide 17: Q1 2016 - Financial highlights, continued
Q1 2016 - Financial highlights, continued EBITDA EBITDA % MNOK 45 14% 40 12% 35 30 2013 10% 2013 25 2014 8% 2014 20 6% 2015 2015 15 2016 4% 2016 10 5 2% - 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Stabilizing on a historical higher EBITDA-level both in NOK and in % The medium term target of 10% EBITDA on a annual
Slide 18: Cage Based Technologies
Cage Based Technologies CBT (Revenue & EBITDA %) Nordic 300 12% ● Good performance in Q1 – traditional low season 277 259 10,2 % ● A wide range of products continue to contribute financially – 37 AKVAsmart products, Barges and Polarcirkel cages 250 8,9 % 10% 39 31 Americas 200 8% ● Low activity in C
Slide 19: Software
Software SW (Revenue & EBITDA %) 40 20% 36 35 1 18% 3 17,5 % 30 31 1 16% ● AKVA group Software AS with good start of the year 5 14,0 % 14% 25 ● Wise lausnir ehf – with improved performance YoY 12% 20 10% ● WiseBlue – Norwegian subsidiary of Wise lausinr ehf – small but profitable 32 8% ● 15 Software
Slide 20: Land Based Technologies
Land Based Technologies LBT (Revenue & EBITDA %) 90 40% 80 80 1 30% ● 70 20% of total Group revenue in Q1 60 20% ● Significant improved financial performance YoY 50 35 ● Plastsveis AS with a very good start of the year 40 79 10% 30 1 6,3 % ● Aquatec Solutions A/S – with a good Q1 20 0% ● AKVA group
Slide 21: Financials – Detailed P & L
Financials – Detailed P & L P&L 2016 2015 2015 • Increased depreciation mainly (MNOK) Q1 Q1 Total due to increased rental CAPEX OPERATING REVENUES 392,5 325,0 1 425,3 and amortization Operating costs ex depreciations 352,9 298,4 1 290,2 EBITDA 39,6 26,6 135,2 • Low interest cost due to low Depreciat
Slide 22: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital +83 MNOK +73 MNOK / +6.5 percentage points MNOK 160 14,0 % MNOK 140 11,5 % 12,0 % 10,8 % 120 8,8 % 10,0 % 100 8,0 % MNOK MNOK 226 230 80 183 137 6,0 % 60 116,0 126 4,3 % 153 147 157 160 144 144 4,0 % 40 64 20 2,0 % 0 0,0 % 1Q14
Slide 23: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE Equity +5.6 percentage points +32 MNOK 17,9 % 500 50% 42,8 % 15,2 % 15,2 % 14,7 % 450 45% 44,4 % 14,1 % 13,9 % 38,9 % 400 40% 12,3 % 350 35% 300 30% MNOK 8,4 % 8,3 % 250 25% 200 20% 150 15% 100 10% 50 347 365 375 389 403 417 443 428 435 5% 0 0
Slide 24: Net debt/EBITDA of 0.5x
Net debt/EBITDA of 0.5x Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 150 2,0 Net debt 31.12.2015 136 117 136 EBITDA -39 615 120 Income taxes paid 9 646 1,3 98 Net interest paid 1 856 89 90 1,0 92 82 Capex paid 23 114 70 76 1,0 71 1,0 Acquisitions / Divestments - 0,9 0,8 60 0,8 Paid
Slide 25: Balance sheet
Balance sheet BALANCE SHEET 2016 2015 (MNOK) 31.03 31.03 ASSETS 1 117 942 Intangible non-current assets 360 274 Tangible non-current assets 110 76 Financial non-current assets 10 2 Inventory 180 183 Receivables 306 349 Cash and cash equivalents 151 57 LIABILITIES AND EQUITY 1 117 942 Equity 431 402
Slide 26: CAPEX
CAPEX Capex (TNOK) and capex / sales (%) CAPEX breakdown 2016 YTD (TNOK) 35 000 32 853 20% 18% 30 000 7 660 16% 25 000 23 114 14% 18 633 12% 20 000 5 613 10% 16 037 15 871 10% 15 000 8% 10 982 11 017 6% 10 994 6% 9 133 9 841 10 000 4% 6% 4% 4% 3% 3% 3% 4% 5 000 2% 0 0% Q1 - 2014 Q2 - 2014 Q3 - 2014
Slide 27: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 13 203 105 3 900 000 51,1 % 15,1 % EGERSUND GROUP AS WHEATSHEAF INVESTMENTS LIMITED NOR GBR Last 12 months Share price Trading volume 853 662 3,3 % VERDIPAPIRFONDET ALFRED BERG GAMBA NOR 539 3
Slide 28: Outlook – by CEO Trond Williksen
Outlook – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 28
Slide 29: Order backlog and inflow
Order backlog and inflow Order backlog Order inflow MNOK 800 MNOK 600 700 LBT 600 500 283 500 400 2013 400 2014 300 300 2015 200 200 414 2016 100 100 0 - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Highest order backlog ever The good market activity continues MNOK 283 of total order backlog at end of quarter is r
Slide 30: Maintaining positive outlook
Maintaining positive outlook ● Good mid term outlook due to high market activity and large order backlog, especially in the Nordic market segment ● Good demand in the Nordic cage based segment continues, with shift towards sale of technology for more efficient production ● Land based segment with gr
Slide 31: AKVA group Capital Markets Day – Agenda
AKVA group Capital Markets Day – Agenda 0930 – 0940 Welcome (CEO) 0940 – 1020 AKVA – status and main strategies going forward (CEO & CFO) 1020 – 1030 Break 1030 – 1100 Land based technologies – status and potentials for the salmon industry (GM Aquatec Solution) 1100 - 1130 Atlantis Subsea Farming –
Slide 32: Q&A
Q&A Your Aquaculture Technology and Service Partner 32
Slide 33: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner