Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2023 Earnings Presentation
47 slides from Akva Group Asa's earnings presentation, Feb 16, 2024
Slide 1: Q4 2023 Presentation
Q4 2023 Presentation Oslo, 16 February 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 Q4 2023
Agenda|Q4 2023 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 4: Highlights Q4 2023
Highlights|Q4 2023 ▪ Revenue of MNOK 800 and EBIT of MNOK 0 adjusted for MNOK 10 in costs related to rightsizing process ▪ Rightsizing process with estimated MNOK 45 in annual costs savings completed in Q4 ▪ Acceptable order intake in Sea Based but still slow market in Land Based ▪ AKVA has revised
Slide 5: Key figures Q4 2023
Key figures|Q4 2023 Revenue EBITDA EBIT 800 MNOK 41 MNOK -10 MNOK 61 833 52 19 779 800 757 9 41 655 27 -10 -14 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 -40 -106 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Pioneering a better future
Slide 6: Key figures Full year 2023
Key figures|Full year 2023 Revenue EBITDA EBIT 3 431 MNOK 263 MNOK 68 MNOK 337 3 376 3 431 302 147 3 177 3 122 3 077 272 263 120 68 62 158 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 -56 2019 2020 2021 2022 2023 * Note: EBITDA of MNOK 158 in 22 is impacted by * Note: Negative EBIT of MNOK 56 i
Slide 7: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 840 2 884 89 162 2 609 150 2 396 150 1 984 1 170 1 062 1 688 106 30 1 905 889 103 1 728 1 454 34 33 527 718 1 018 683 600 0 40 4 21 Digital Digital 823 613 690 574 679 Land Based 902 Land Based 861 817 731 792 Sea
Slide 8: Strategic and Operational Status
Strategic and Operational Status Pioneering a better future
Slide 9: Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030
Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030 Extrapolation of underlying demand growth for salmon 2012-2030 Consumption of Atlantic salmon WFE in mill. tons Main supply and demand drivers Growth in demand driven by emerging salmon 5.0 High demand growth (~4.5%)1 2022-
Slide 10: 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 11: 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 12: Current digital solutions
Current digital solutions ▪ 104 sites worldwide on ▪ Global market share of 60% ▪ 353 sites worldwide on ▪ 17 sites worldwide on recurring revenue model recurring revenue model recurring revenue model ▪ 25 new sites in 2022 ▪ 125 new sites in 2022 ▪ 64 new sites in 2023 ▪ 178 new sites in 2023 Pione
Slide 13: Innovation agenda for Land Based Salmon Farming
Innovation agenda for Land Based Salmon Farming Delivering complete scope of fish Market leading RAS technology farming technology (e.g. feeding, fish 1 enabling sustainable and cost-effective 2 tanks, fish handling, camera, lights, production sensors, control system) Data driven insight and intelli
Slide 14: 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 Outlook – p
Slide 15: NOAP phase I will be finished in Q1-2024
NOAP phase I will be finished in Q1-2024 ▪ Construction of NOAP phase I will be completed in Q1 2024. Annual capacity of 4,000t ▪ NOAP phase II is initiated with additional annual capacity of 4,000t ▪ Phase II to be executed towards end of 2024 and during 2025 ▪ AKVA has signed RAS contract for phas
Slide 16: Expected activity level for Land Based
Expected activity level for Land Based ▪ Total order backlog of BNOK 1,5 ▪ During 2023 AKVA has signed the following contracts: – NOAP phase II MEUR 40 (full grow out): Project is started and will be executed next 2-3 years – Cermaq Finnmark MEUR 60 (post smolt): Project is started and will be execu
Slide 17: Revised medium term financial targets
Revised medium term financial targets Revenue growth Profitability EBIT enablers ➢ 2024: Min. 5% growth (BNOK 3,6) ➢ 2024: 4-5% EBIT ➢ Operational excellence but no growth in Land Based ➢ 2025: min. 6% EBIT ➢ Cost reduction program implemented 2023 ➢ Long term: Organic topline growth of ➢ Improve RO
Slide 18: Revenue and EBIT development
Revenue and EBIT development Revenue (MNOK) EBIT (% & MNOK) 6,0% 6 240,0 4 000 220,0 5 200,0 3 600 3 376 3 431 4-5% 180,0 4 160,0 140,0 3 240 120,0 2,0% 100,0 2 144-180 80,0 60,0 1 40,0 68 0 20,0 0,0 -57 -20,0 -1 -1,7% -40,0 2022 2023 2024F 2025F -2 -60,0 2022 2023 2024F 2025F EBIT% EBIT MNOK Pionee
Slide 19: Agenda Q4 2023
Agenda|Q4 2023 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 20: Q4 2023 – Income statement
Q4 2023 – Income statement NOK million 2023 2022 2023 2022 ▪ Revenues increased by MNOK 21 compared to Q4 Q4 YTD YTD Revenue 800 779 3 431 3 376 Q4 22 Cost of materials 435 474 1 996 2 107 Payroll expenses 270 224 954 881 Other operating expenses 54 54 217 230 EBITDA 41 27 263 158 ▪ EBIT increased b
Slide 21: Revenue development
Revenue development ▪ Last twelve months order intake and revenue was MNOK Revenue (MNOK) 4,328 and MNOK 3,431, respectively 833 800 779 757 ▪ Revenue increased by 3% compared to Q4 22 655 ▪ Increased revenue in both Sea Based and Digital but reduction of 13% in Land Based compared to Q4 22 Q4 19 Q4
Slide 22: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 940 940 874 33 874 63 27 817 779 174 800 74 817 800 33 779 127 24 40 40 192 50 124 70 150 96 142 163 109 123 178 131 180 175 193 733 655 660 592 618 572 AustralAsia 518 502 466 394 Europe & Middle East Digital Americas
Slide 23: EBITDA and EBIT development
EBITDA and EBIT development ▪ EBITDA margin increased from 3,5% in Q4 22 EBITDA EBIT to 5,1% in Q4 23 4,0% 120,0 9,5% 10,0 9,1% 120,0 3,5% 4,0 110,0 9,0 110,0 3,5 ▪ Adjusted for costs of MNOK 10 related to 100,0 100,0 3,0 8,0 rightsizing process EBITDA margin was 6,3% in 90,0 90,0 2,5 6,7% Q4 23 80,
Slide 24: Cash flow and financial position
Cash flow and financial position Available cash (MNOK) Net Working capital Net debt / EBITDA* 800 600 11,6% 12 1 800 4,35 4,55 4,27 731 4,16 11 4,20 700 1 600 500 10 3,66 3,85 629 600 8,6% 9 1 400 3,33 3,50 8,2% 522 526 519 398 3,15 400 8 1 200 1 079 1 123 1 088 1 109 500 2,80 6,2% 7 988 6,0% 293 1
Slide 25: Net interest-bearing debt development
30.09.2023 1 088 EBITDA 41 Net interest 24 0 Corporate taxes Pioneering a better future Change WC 81 CAPEX New IFRS 16 liability 35 50 NIBD Q4 2023 (MNOK) Acquisitions 352 Currency & Other 31.12.2023 1 109 31.12.2022 988 EBITDA 263 Net interest 86 Corporate taxes 12 9 Change WC CAPEX 175 New IFRS 16
Slide 26: Capital expenditure
Capital expenditure CAPEX (MNOK) ▪ Total CAPEX of MNOK 35 in Q4 23, where MNOK 16 applies to our three innovation agendas ▪ Total CAPEX in 2023 of MNOK 175 64 10 44 44 11 8 35 32 0 8 54 33 32 36 28 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Growth Maintenance Pioneering a better future
Slide 27: Dividend
Dividend Cash dividend (NOK per share) ▪ The company has decided not to pay any dividend for the first half of 2024 1,75 1,00 1,00 1,00 2019 2020 2021 2022 Pioneering a better future
Slide 28: Business segments
Business segments Pioneering a better future
Slide 29: Sea Based Technology
Sea Based Technology Overall Revenue (MNOK) and EBITDA-margin (%) • Revenue increased by MNOK 26 while EBITDA margin increased from 8,4% in Q4 22 to 8,8% in Q4 23 1 300 18 • Order intake decreased from MNOK 823 in Q4 22 to MNOK 679 in 1 200 16 Q4 23 1 100 14 1 000 Nordic 900 12 • Revenue increased b
Slide 30: 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 2 700 902 817 792 861 2 600 731 2 500 823 2 400 613 690 574 679 2 300 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 12M Revenue 12M Order Intake Order Backlo
Slide 31: Development OPEX based revenue
Development OPEX based revenue ▪ Positive trend continues and OPEX based revenue was Revenue (MNOK) MNOK 31 higher in Q4 23 compared to Q4 22 350 42,5% 45 41,0% 39,2% 40 ▪ Full year OPEX based revenue amounts to MNOK 1,017 300 35,8% and is 18% higher compared to 2022 33,8% 35 250 30 200 25 150 20 26
Slide 32: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) ▪ Revenue decreased by 13% in Q4 23 compared to Q4 22 170 163 2 0 ▪ Profit margins are still negative impacted by high cost base, 150 142 low activity level and low project margins on parts of the 5 0 130 project portfolio 110 ▪ Rightsizing
Slide 33: 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 1 905 1 000 1 018 500 1 728 1 454 1 062 683 527 0 34 4 0 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 12M Revenue 12M Order Intake Order Backlog Order Inta
Slide 34: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) ▪ Order intake of MNOK 40 is MNOK 7 higher than the same quarter last year 50 19,7% 20 45 ▪ Strong increase of 66% in recurring revenue compared to Q4 22 40 40 4 15 35 ▪ Temporary setback on profitability as EBITDA margin decreased 30 12 from 20% in Q4 22
Slide 35: Digital order intake and backlog development
Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 200 180 160 140 162 120 150 100 150 103 106 80 89 60 33 30 40 21 40 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 12M Revenue 12M Order Intake Order Backlog Order Intake P
Slide 36: Outlook
Outlook Pioneering a better future
Slide 37: Outlook
Outlook ▪ Salmon prices expected to remain strong driven by reduced supply ▪ AKVA expects to see normalization of the post smolt market in Norway during the second half of 2024 ▪ Rightsizing of organization completed in Q4 23 with estimated annual cost savings of MNOK 45 ▪ AKVA has revised the mediu
Slide 38: 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 39: Agenda Q4 2023
Agenda|Q4 2023 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 40: Appendix
Appendix Pioneering a better future
Slide 41: 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 1.425 employees Companies in 11 Technology leader stock exchange 2023: countries through 40 years since 2006 NOK 3.4 billion Pioneering a better futu
Slide 42: Our presence
Our presence Present in all markets with offices in: ▪ Norway ▪ Denmark ▪ Scotland ▪ Lithuania ▪ Spain ▪ Greece ▪ Turkey ▪ Chile ▪ Canada ▪ China ▪ Australia Pioneering a better future
Slide 43: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2023 2022 31.12. 31.12. Intangible fixed assets 1,3 1 157 266 989 063 Deferred tax assets 77 283 44 902 Tangible fixed assets 671 833 635 245 Long-term financial assets 312 778 314 337 FIXED ASSETS 2 219 160 1 983
Slide 44: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2023 Q4 2022 Q4 2023 YTD 2022 YTD Profit before taxes -53 166 -36 654 -29 311 -151 864 Taxes paid -425 -5 133 -12 184 -11 370 Share of profit(-)/loss(+) from associates -2 106 -1 102 -10
Slide 45: 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 1 901 267 5,2 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 1 095 436 3,0 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR
Slide 46: 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 47: Pioneering a better future
Pioneering a better future AKVAcRour