Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2017 Earnings Presentation
38 slides from Akva Group Asa's earnings presentation, May 11, 2017
Slide 1: Q1 2017 Presentation
Q1 2017 Presentation Oslo – May 11th, 2017 Hallvard Muri, CEO Simon Nyquist Martinsen, 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 2017 - by CEO Hallvard Muri
Highlights Q1 2017 - by CEO Hallvard Muri Your Aquaculture Technology and Service Partner 3
Slide 4: Continued high market activity
Continued high market activity Order Intake - Order intake of 589 MNOK in Q1 2017 (441 MNOK in Q1 2016) +34% 589 - Record high order intake Q1 561 533 51 SW 504 31 69 - Cage Based segment 435 MNOK in Q1, up 47% YoY 34 103 LBT 441 72 417 44 - The high activity in the Nordic region resulted in an orde
Slide 5: Strong quarter on revenue
Strong quarter on revenue Revenue • Operating revenue of 510 MNOK in Q1 2017 (+117 MNOK +30% from Q1 2016): • Main increase from Cage Based segment Nordic region, +79 MNOK compared to Q1 2016 • Positive development in Chile YoY (+23 MNOK), as 510 positive market sentiment start giving effect 402 393
Slide 6: Positive development in EBITDA margin
Positive development in EBITDA margin EBITDA • EBITDA of 54 MNOK in Q1 2017 (+14 MNOK from Q1 2016): +35% • Nordic region represents 42 MNOK of the EBITDA in the quarter • AKVA group Chile delivers an increase of 2.6 MNOK in EBITDA YoY 54 41 41 40 43 • Positive development in Export, in particular S
Slide 7: High order backlog – good underlying performance
High order backlog – good underlying performance Order Backlog First quarter 2017 – Highlights +55% 1 077 • Strong sales and order intake 998 885 822 430 • Order backlog end of March of 1.1 BNOK 697 412 643 649 417 437 • EBITDA of 54 MNOK in the quarter 494 286 264 283 118 • Dividend of 0.50 NOK per
Slide 8: Where we deliver
Where we deliver AKVA group’s geographical regions Income distribution Q1 2017 (16) 10% (9%) 10% (10%) 80% (81%) Nordic Americas Nordic Export Export AKVA group Americas Agents and Distributors Your Aquaculture Technology and Service Partner
Slide 9: Strategic priority to increase OPEX based revenue
Strategic priority to increase OPEX based revenue OPEX based vs CAPEX based revenue Comments 140 35,0 % • Focus on increasing OPEX based revenue – by developing software sales, 30,6 % farming services, technology services and rental sales 120 27,9 % 28,3 % 30,0 % 26,0 % • Rental is an “all inclusive
Slide 10: Revenue by product groups and species
Revenue by product groups and species By product groups – Q1 2017 By species – Q1 2017 Software Non Seafood S&AS Land Based 0,1% 10,3% Other species (11,3%) (0%) 5,9% Land Based Tech 8,0% 16,5% (9,3%) (11,3) (20,3%) 60,1% 15,3% (56,7%) Cage Based Tech (13,7%) S&AS Cage Based 83,8% (77,4%) Salmon C
Slide 11: Q1 – Operational Highlights
Q1 – Operational Highlights • Expanding and focusing in export markets (Cage Based and Land Based) • Atlantis – Update on development licenses Your Aquaculture Technology and Service Partner
Slide 12: New office in Iran
New office in Iran Iranian market Trout AKVA cage farm No. 4 AKVA cage • Developing industrial scale fish farming is top farm No. 1 government priority AKVA cage farm No. 2 ‒ Adopting the «salmon model» AKVA land based AKVA cage farm No. 2 farm No. 3 ‒ Bigger farms ‒ Scale of economy ‒ Better equipm
Slide 13: Atlantis development licenses update
1. Atlantis Subsea Famring AS applied for 6 development licenses the 29th of January 2016 2. The Norwegian Directorate of Fisheries have informed the company that the company’s concept has progressed another step further in the process to get awarded development licenses. 3. The Directorate will go
Slide 14: Financial performance Q1 2017 – by CFO Simon Nyquist Martinsen
Financial performance Q1 2017 – by CFO Simon Nyquist Martinsen Your Aquaculture Technology and Service Partner 14
Slide 15: Q1 2017 - Financial highlights
Q1 2017 - Financial highlights 510 Revenue • Strong revenue in the first quarter on the back of a high 449 opening order book 393 402 408 355 354 344 • All regions in the Group with increased revenue in the 310 325 301 330 305 quarter YoY, largest impact from Cage Based Nordic • Last twelve months o
Slide 16: Q1 2017 - Financial highlights, continued
Q1 2017 - Financial highlights, continued EBITDA (MNOK) 60 54 41 43 • Strong development in the Nordic region, good 40 32 40 34 41 38 contribution from AKVA Marine Services and Sperre 27 24 27 24 20 13 • Last twelve months EBITDA now at 159 MNOK up from 144 0 Q1 Q2 Q3 Q4 MNOK at year end – last twel
Slide 17: Cage Based Technologies
Cage Based Technologies Nordic CBT (Revenue and EBITDA%) ● Revenue YoY up 38% (24% organic) in total for the region 11,0% ● All entities contributing positively YoY with our wide range of products – makes the Group more diversified 400 10,9% 385 12 50 ● The Farming Services operations is increasing
Slide 18: Land Based Technologies
Land Based Technologies LBT (Revenue and EBITDA%) 90 85 10 80 80 1 ● Aquatec Solutions with a strong start of the year 1 with an EBITDA of 5.8 MNOK in Q1, an increase of 8,1% 3.9 MNOK YoY 70 60 ● Plastsveis is ending the quarter with an EBITDA of 50 1.1 MNOK 4,7% 84 40 79 ● AKVA group Denmark has a
Slide 19: Software
Software SW (Revenue and EBITDA%) ● AKVA group Software AS with stable performance YoY 45 41 20 16,2% 40 36 3 1 ● Wise experienced lower EBITDA after 35 1 pressure on margins and costs 3 12,0% 10 30 ● Ongoing investments in new product 25 modules expected to strengthen the 0 financial performance of
Slide 20: Financials – Detailed P & L
Financials – Detailed P & L (MNOK) 2017 2016 2017 2016 2016 Q1 Q1 YTD YTD Total Order backlog 1 076,7 697,0 1 076,7 697,0 997,7 Order intake 589,0 440,7 589,0 440,7 1 952,0 P&L OPERATING REVENUES 510,0 392,5 510,0 392,5 1 603,1 • Increased depreciation mainly due Operating costs ex depreciations 455
Slide 21: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 150 145 11 150 10 137 127 134 134 10,6% 127 131 10 9 10,8% 126 123 109 118 9 9,4% 115 9,6% 8 9,1% 8,8% 9,8% 9,3% 106 107 7,5% 8,8% 8 7,7% 98 7 100 6,8% 100 7,1% 7,2% 7 85 6 6 256 64 5,7% 5 226 230 4,3% 5
Slide 22: CAPEX
CAPEX Capex (TNOK) and capex / sales (%) 70 000 20% CAPEX breakdown 2017 YTD (TNOK) 18% 60 000 57 368 16% 50 000 14% 12% 48 591 40 000 32 853 11% 10% 2 259 30 000 10% 24 407 24 728 8% 23 114 6 519 20 000 7% 6% 16 037 17 067 15 871 6% 6% 10 994 4% 4% 4% 10 000 4% 3% 2% 0 0% Ordinary Rental Intangible
Slide 23: Net debt/EBITDA of 2.0
Net debt/EBITDA of 2.0 Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) Net debt 31.12.2016 212 332 400 2,0 2,10 EBITDA -54 186 Income taxes paid 4 886 310 1,75 300 Net interest paid 2 553 1,5 1,4 Capex 57 368 213 212 1,40 200 Acquisitions / Divestments - 172 136 1,05 Paid dividend 12 9
Slide 24: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE Equity 500 42,8% 41,5% 45 460 446 443 428 435 437 435 450 417 40 403 400 38,0% 38,9% 35 39,6% 37,1% 38,9% 350 31,6% 30 31,3% 300 25 250 17,8% 20 15,2 200 13,9% 14,7% 14,0% 15 12,3% 12,4% 150 9,8% 9,6% 10 100 50 5 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2
Slide 25: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Note 2017 2016 2017 2016 2016 (NOK 1 000) Q1 Q1 YTD YTD Total Net cash flow from operations 43 049 20 428 43 049 20 428 105 596 Net cash flow from change in w orking capital -74 738 65 766 -74 738 65 766 106 050 Net cash flow from ope
Slide 26: Balance sheet
Balance sheet BALANCE SHEET 2017 2016 (MNOK) 31.03 31.12 ASSETS 1 425 1 376 Intangible non-current assets 573 575 Tangible non-current assets 189 151 Financial non-current assets 3 6 Inventory 204 186 Receivables 327 292 Cash and cash equivalents 131 166 LIABILITIES AND EQUITY 1 425 1 376 Equity 445
Slide 27: Dividend
Dividend Cash Dividend • The dividend level shall reflect the present and expected 1,2 future cash generating potential of AKVA group 1 1 1 1 0,8 0,75 • AKVA group ASA aims to pay out dividends twice 0,6 a year, after the 1st and the 2nd half of the year 0,5 0,4 0,2 • Dividend in 2016 is allocated a
Slide 28: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 13 203 105 51,1 % EGERSUND GROUP AS NOR Last 12 months 3 900 000 15,1 % WHEATSHEAF INVESTMENT GBR Share price Trading volume 1 051 141 4,1 % VERDIPAPIRFONDET ALFRED BERG NOR 100 70 000 000 489
Slide 29: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri Your Aquaculture Technology and Service Partner 29
Slide 30: AKVA group in brief
AKVA group in brief • Leading technology and service partner to the global aquaculture industry • Global presence and subsidiary in 9 countries • Deliveries in over 65 countries during the last 40 years • 842 employees • 2016 revenues of 1 603 MNOK • Listed on Oslo Stock Exchange since 2006 • Market
Slide 31: Cage Based Technology
Cage Based Technology Your Aquaculture Technology and Service Partner
Slide 32: Land Based Technology
Land Based Technology Your Aquaculture Technology and Service Partner
Slide 33: CAPEX Based Revenue
CAPEX Based Revenue Your Aquaculture Technology and Service Partner
Slide 34: OPEX Based Revenue / CAPEX Based Revenue
OPEX Based Revenue CAPEX Based Revenue SOFTWARE Fishtalk AKVAconnect Support MARINE SERVICES & Rentals Marine Services After Sales Service AFTER SALES SERVICE Your Aquaculture Technology and Service Partner
Slide 35: Order backlog and inflow, 2014 through 2017
Order backlog and inflow, 2014 through 2017 Order backlog Order intake 1 077 589 998 561 533 103 504 72 885 430 822 441 460 412 417 697 368 101 250 214 57 89 643 417 649 327 348 350 437 36 547 6 80 63 283 478 494 504 452 93 286 264 243 75 118 93 12 486 201 489 106 349 647 56 16 360 371 586 332 340 3
Slide 36: Outlook – AKVA group
Outlook – AKVA group ● Continued good outlook for most markets ● Strengthening the organization and focusing on improving competitive position across all markets ● Increased focus on supply chain, sourcing and manufacturing efficiency ● Land Based focus on post smolt segment, high quote bank ● Expor
Slide 37: Q&A
Q&A Your Aquaculture Technology and Service Partner 37
Slide 38: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner