Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2020 Earnings Presentation
42 slides from Akva Group Asa's earnings presentation, Mar 12, 2021
Slide 1: Q4 2020 Presentation
Q4 2020 Presentation Klepp, 12 March 2021 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Technology for sustainable biology
Technology for sustainable biology
Slide 3: Agenda Q4 2020
Agenda|Q4 2020 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 4: Highlights Q4 2020
Highlights|Q4 2020 Operation Innovation and Digital • Activity level increased by 18% in Q4 compared to Q4 2019 • Strengthened organizations both within Innovation and Digital • EBIT impacted by a significant amount of quality costs within • Strategic important acquisition of equity stake in Observe
Slide 5: Key figures Q4 2020
Key figures|Q4 2020 Revenue EBITDA EBIT 770 MNOK 53 MNOK 9 MNOK +72% +29 +6 770 60 39 726 57 53 22 655 9 557 3 449 24 Q4 16 Q4 17 Q4 18 Q4 19 Q4 20 -106 -40 Q4 16 Q4 17 Q4 18 Q4 19 Q4 20 Q4 16 Q4 17 Q4 18 Q4 19 Q4 20 5 Technology for sustainable biology
Slide 6: Cage Based business – revenue seasonality
Cage Based business – revenue seasonality Compared with Qt. Avr.(3 yrs): 775 +2% +9% +1% - 9% 689 694 696 648 664 651 657 654 647 614 594 593 553 558 529 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1QAVR 2QAVR 3QAVR 4QAVR Avr. of 4 qt. in year 6 Technology for sustainable biology
Slide 7: Key figures 2020
Key figures|2020 Revenue EBITDA EBIT ROACE 3 190 MNOK 337 MNOK 147 MNOK 7.9 % +134% +96% +99% 337 157 3 190 147 3 077 272 130 2 579 240 238 2 088 1 603 75 16,9% 144 62 11,3% 9,1% 7,9% 3,3% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 7 Note: IFR
Slide 8: Market development – signs of improvement
Market development – signs of improvement 8 Source: Pareto Seafood Price Update 11.03.2021 Technology for sustainable biology
Slide 9: Strong order intake and order backlog
Strong order intake and order backlog Order intake (MNOK) Order backlog (MNOK) +22% +10% 994 1 009 1 864 26 1 783 21 1 694 55 1 650 49 1 625 828 49 45 236 49 19 385 709 647 771 975 218 10 13 674 605 16 747 72 686 738 591 559 599 Digital solutions 1 000 Digital solutions 971 963 828 833 Land Based La
Slide 10: Cyber-attack: Significant non-recurring costs
Cyber-attack|Significant non-recurring costs • On Sunday 10 January AKVA group fell victim to a cyber extortion attack from a group of criminal hackers • Most of AKVA group’s internally hosted services were shut down and data, including backups, were encrypted • Global and regional expertise, togeth
Slide 11: 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 AKVAconnect, • Step by step improve to support new AKVA Observe and ROACE to min. 15% by Product development Fishtalk 2023. and Organi
Slide 12: High demand for Land Based technology capabilities
High demand for Land Based technology capablities • Nordic Aqua Partners (Danish company) • AquaCon AS (Norwegian company) • Ecofisk AS (Norwegian company) • Full grow out facility in Ningo, China • Full grow out facility in Maryland, USA • Full grow out facility at Espevik, Norway • Total capacity:
Slide 13: Strategic investment in Observe Technologies
Strategic investment in Observe Technologies - Total consideration of MGBP 3,5 and ownership of 33.67% Data Available to Farmers Decision AI's Action Fish behaviour & feeding practices Integrate into: Automatic systems to: ▪ Sensor systems (4 major suppliers) ▪ Fully integrated control for farmers ▪
Slide 14: Agenda Q4 2020
Agenda|Q4 2020 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 15: 4Q 2020 – Income statement
4Q 2020 – Income statement 2020 2019 2020 2019 • Overall unsatisfactory financial performance in Q4 driven NOK million Q4 Q4 Total Total by low EBIT margin in the Cage Based segment Revenue 770 655 3 190 3 077 EBITDA 53 -40 337 272 EBITDA margin 6,8 % -6,1 % 10,6 % 8,8 % D & A1 43 65 190 210 • Posit
Slide 16: Revenue development
Revenue development Revenue (MNOK) • Last twelve months order intake and revenue MNOK +18% 3,361 and MNOK 3,190 respectively 862 806 770 752 • Revenue increased by 18% compared to Q4 2019 655 • Positive revenue development in all three business segments compared to Q4 2019 Q4 19 Q1 20 Q2 20 Q3 20 Q4
Slide 17: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 862 862 16 806 5 806 70 16 770 752 752 104 7 770 17 96 20 7 98 14 79 655 655 157 121 16 6 154 180 193 110 117 143 149 140 775 657 694 593 573 529 508 492 AustralAsia 443 392 Europe & Middle East Digital Solutions Ameri
Slide 18: EBITDA and EBIT development
EBITDA and EBIT development • Unsatisfactory profit margins mainly due EBITDA (MNOK) EBIT (MNOK) to quality costs in Cage Based segment 120,0 13,1% 14,0 120,0 7,2% 8,0 11,4% 5,0% 5,0% 6,0 • EBITDA in Cage Based segment of 6.3% in 100,0 10,8% 12,0 100,0 4,0 Q4 compared to 14.4% in Q3 10,0 80,0 80,0 2
Slide 19: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA 600 565 562 3,15 600 16 1 600 3,3 3,50 3,2 15,0% 516 521 2,80 3,0 3,15 14 1 400 2,9 500 500 2,8 2,45 447 1 202 2,80 409 12 1 200 10,3% 1 056 1 080 1 083 2,45 400 2,10 400 1 021 10 1 000 423 2,10 9,3% 316 8,5% 1,75
Slide 20: Development return on capital employed
Development return on capital employed ROACE (%) • ROACE increased from 1.8% at the end of Q3 to 15 7.9% at the end of Q4 • Net working capital will still have a high focus 10 going forward and several new initiatives have been implemented 15,0% 5 7,9% 3,3% 2,7% 2,2% 1,8% 0 Q4 19 Q1 20 Q2 20 Q3 20 Q
Slide 21: Dividend
Dividend Cash dividend (NOK per share) • The company has decided to pay a dividend of NOK 1.00 per share at the start of Q2 2021 1,75 1,50 1,25 1,00 1,00 0,75 2016 2017 2018 2019 2020 Q1 2021 21 Technology for sustainable biology
Slide 22: Update on divestment of AKVA Marine Services
Update on divestment of AKVA Marine Services • Thorough process headed by Danske Bank • Cyber-attack has delayed the process with 1 month • Marketing and management presentations scheduled for Q2 Technology for sustainable biology
Slide 23: Business segments
XO Business segments
Slide 24: Cage Based Technology
Cage Based Technology • Order intake at the same level as last year while revenue Revenues (MNOK) and EBITDA-margin (%) increased by 12% 800 6,5 • EBITDA improved from 5.9% to 6.3% 5,9% 6,3% 6,0 700 Nordic 5,5 • Revenue increase of 12% in Q4 compared to Q4 2019 mainly 600 593 5,0 related to net sale
Slide 25: Development OPEX based revenue
Development OPEX based revenue • The positive trend of increasing share of recurring Revenue (MNOK) revenue continued in Q4 300 37,6% 40 37,3% 34,6% 33,6% 35 31,9% • Our planned and ongoing investments in two new 250 30 service stations in Norway will further strengthen 200 this part of the business
Slide 26: Land Based Technology
Land Based Technology • Order intake was high in the quarter and 76% above Q4 last year Revenues (MNOK) and EBITDA-margin (%) 157 160 15 4 0 • Revenue increased by 42% in Q4 2020 compared to Q4 2019 150 10 5,0% 5 140 0 130 • EBITDA of MNOK 7.9 in the quarter compared to 0.2 MNOK in -5 120 -10 Q3 110
Slide 27: Digital Solutions
Digital Solutions Revenues (MNOK) and EBITDA-margin (%) • Positive development in both revenue and margins compared to 40 37,5% 40 Q4 2020 35 33,6% 35 • EBITDA of MNOK 7.5 in the quarter 30 30 25 25 20 20 1 20 16 5 15 1 15 EBITDA % 5 Europe&Middle East Americas 10 10 Nordic 14 5 11 5 0 0 2019 Q4 202
Slide 28: Outlook
XY Outlook
Slide 29: Outlook
Outlook • Order backlog remains sound and forms a good foundation for our organic growth strategy • In the short term, the company expects some headwind both in relation to the ongoing COVID-19 implications and costs related to the cyber-attack • Long term fundamentals remain however unchanged as pr
Slide 30: Agenda Q4 2020
Agenda|Q4 2020 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 31: 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 32: Appendix
Appendix
Slide 33: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 10 and service exchange countries countries. partner since 2006 over 40 1 437 years employees
Slide 34: Our presence
Our presence AKVA group 34 Technology for sustainable biology
Slide 35: Solutions
Solutions Cage Based Technology Land Based Technology Digital Solutions 35 Technology for sustainable biology
Slide 36: Revenue by species
Revenue by species Revenue by Species (MNOK) 862 56 806 23 770 752 62 41 24 39 35 655 32 39 37 744 741 712 682 579 Non seafood Other species Salmon Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 36 Technology for sustainable biology
Slide 37: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2020 2019 (NOK 1 000) 31.12. 31.12. Intangible fixed assets 1 043 804 1 011 252 Deferred tax assets 12 181 16 354 Fixed assets 740 319 781 105 Long-term financial assets 148 430 74 785 FIXED ASSETS 1 944 734 1 883 496 Stock 469 376
Slide 38: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2020 2019 2020 2019 (NOK 1 000) Q4 Q4 YTD YTD Net cash flow from operations 36 281 -49 793 280 992 180 151 Net cash flow from change in w orking capital 17 455 125 394 -3 849 30 617 Net cash flow from operational activities 53 736 75
Slide 39: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares 20 703 105 % Account name 62,1 % EGERSUND GROUP AS Type Citizenship NOR Last 12 months Share price Trading volume 1 614 718 4,8 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 1 037 411 3,1 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 120
Slide 40: 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 41: Customer focus
CUSTOMER FOCUS AQUACULTURE X09 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 42: AKVA group
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