Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2008 Earnings Presentation
19 slides from Akva Group Asa's earnings presentation, Nov 5, 2008
Slide 1: 3Q 2008 presentation
The global leader in aquaculture technology 3Q 2008 presentation 05 November 2008 Knut Molaug, CEO Rolf Andersen, CFO Agenda Background & highlights 3Q 2008 Financial review Focus on recirculation systems Outlook Q&A 2 1
Slide 2: AKVA group in brief
3 AKVA group in brief Software systems Cage systems AKVA group facts and services • The leading aquaculture technology supplier • Strong market position with all main products • The only player with global presence • Strong and experienced management • Growth company in a global growth industry Oper
Slide 3: 3Q highlights
One-stop-shop in aquaculture technology Value chain planning and optimising software 5 Land based farms Cage based farms 3Q highlights ● Operating revenue in 3Q was 207 MNOK which is lower than same period last year. The period’s EBITDA was 18.1 MNOK ● Operating revenue year to date was 675 MNOK. Th
Slide 4: 3Q Financials – P&L
Background & highlights 3Q 2008 Financial review Focus on recirculation systems Outlook Q&A 7 3Q Financials – P&L P&L 2008 (Pro-forma) 3Q 3Q YTD YTD Year (MNOK) 2008 2007* 2008 2007* 2007* Operating revenues 207.6 236.7 674.7 695.4 932.0 Operating costs excl. depreciation -189.5 -214.6 -612.2 -632.7
Slide 5: 3Q Financials – P&L comments / Business areas - OPTECH
3Q Financials – P&L comments ● 3Q: The revenue reached 208 MNOK The activity level was affected by a lower than expected order inflow towards the end of the quarter. ● 3Q: The EBITDA result was 18,1 MNOK The reduced EBITDA level compared to last year is related to the reduction in revenue. ● YTD
Slide 6: Business areas - INTECH / Business segments
Business areas - INTECH INTECH (MNOK) Pro-forma 154 135 130 135 150 118 115 103 103 86 80 100 63 Revenues 50 0 2008 1Q 2Q 3Q 4Q 2007 1Q 2Q 3Q 4Q 2006 20 14,5 17,6 11,7 10,5 10,6 11,5 11,3 9,6 9,5 10 6,1 6,7 EBITDA 0 ● In 3Q the revenues fell significantly mainly related to the reduced volumes in Chi
Slide 7: Market segments / Balance sheet
Market segments Geographic segments (YTD) Other Iceland • Norway dominating Medit. 5% 6% 3% UK 5% segment Canada 7% Norway • Importance of Chile reduced 53 % Chile 21 % AKVA group revenues within other species 120 100 CAGR 2003-2007 • Continued growth in a 80 ~86% number of regions MNOK. 60 40 20 0
Slide 8: Balance sheet items
Balance sheet items Working Capital (MNOK) ● Working Capital: 220 199 Working capital represents 22.2% of annualised 200 180 162 revenues. 160 138 140 120 105 102 109 100 80 66 58 70 Measures implemented to 60 40 improve working capital 20 0 through the next 6 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
Slide 9: Strong financial position / Cash flow statement
Strong financial position Equity (%) ● Equity: 70 % Strong equity position 60 % 56 % 56 % 50 % 49 % 50 % Equity affected by the YTD revaluation of 50 % 47 % 47 % 46 % goodwill related to 40 % 30 % 30 % 20 % Iceland of about 13 10 % MNOK 0% 2005 2006 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 Cash balanc
Slide 10: Order backlog and inflow
Order backlog and inflow Order backlog and inflow per quarter (MNOK) 375 382 373 400 326 291 305 305 281 300 241 253 211 198 187 189 200 155 100 0 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 ● Order backlog is reduced by 82 MNOK compared to the same time last year. The decline in order backlog is r
Slide 11: What is recirculation in aquaculture?
What is recirculation in aquaculture? ● Recirculation Aquaculture System (RAS) Technology where the water from fish tanks are treated and returned to fish tanks in a continuous process. ● AKVA group has today established the strongest competence team globally in RAS technology. 10 employees with
Slide 12: Why RAS technology?
Why RAS technology? ● Significantly development the last decade The technology now offers: Top reliability Low power consumption Low need for water replacement Well proven for a multiple of species ● Enclosed controlled environment - eliminating uncontrollable risks in open systems Full co
Slide 13: RAS in the salmon industry
RAS in the salmon industry ● RAS technology is now becoming the new standard in smolt production in the salmon industry. ● Containing a disease free brood stock To produce disease free fish you have to start with disease free brood stock Maintaining brood stock in isolated and disease free envir
Slide 14: Recent RAS projects & going forward
Recent RAS projects & going forward Some recent projects: Future development: ● Salmon smolt facility, Chile ● Norway – several large smolt ● Salmon projects, Norway prospects. ● Trout facility, Estonia ● Chile - several smolt prospects. ● Turbot facility, China ● Asia – several large prospects ● Ye
Slide 15: Outlook
Outlook ● Chilean market demanding due to the challenging fish health situation We expect significant decline in revenues from this market through 2009. • Continued uncertainty expected for the next 2-4 years. Most customers financially affected by the situation. • We have experienced delays in
Slide 16: Outlook
Outlook ● Other species The growth towards other species than salmon continue to expand according to strategic objectives. The outlook for the coming years is good within this area, however short term the global financial turmoil adding uncertainty. ● Order backlog and development The prospect
Slide 17: Appendix
Background & highlights 2Q 2008 Financial review Focus on recirculation systems Outlook Q&A 33 Appendix 34 17
Slide 18: Group organisation
Group organisation Knut Molaug (CEO) Rolf Andersen Biz. Development (CFO) team IT Steering Technology & product development Committee council Trond Severinsen Jone Gjerde Morten Nærland Patrick Dempster (CMO) (COO) (GM Chile) (GM North America) OPTECH INTECH Sales & Research & OPTECH OPTECH Market o
Slide 19: AKVA group – brief historic summary
AKVA group – brief historic summary 1974: World’s fist plastic cages (Polarcirkel) – today more than 40.000 units delivered 1978: First Seafood industry software solution 1980: World’s first automatic feed systems 1984: Maritech: first seafood industry PC based ERP software system Innovations: 1985: