Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2009 Earnings Presentation
16 slides from Akva Group Asa's earnings presentation, Nov 11, 2009
Slide 1: 3Q 2009 presentation
The global leader in aquaculture technology 3Q 2009 presentation 11 November 2009 Knut Molaug, CEO Rolf Andersen, CFO Agenda Background & highlights 3Q 2009 Financial review 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 140 MNOK which is 33% lower than the same period last year. The period’s EBITDA was 7.4 MNOK. ● A number of one-off effects have an imp
Slide 4: 3Q highlights: restructuring and market uncertainty
3Q highlights ● Restructuring decided in 3Q Xx Main cost effects expected from 2Q 2010. ● The general market uncertainty has increased due to the global financial crisis. Salmon farming companies and others delaying investments. 7 Background & highlights 3Q 2009 Financial review Outlook Q&A 8
Slide 5: 3Q Financials – P&L
3Q Financials – P&L P&L 2009 3Q 3Q YTD YTD Year (MNOK) 2009 2008 2009 2008 2008 Operating revenues 139.8 207.6 456.5 674.7 866.5 Operating costs excl. depreciation 132.4 189.5 451.9 612.2 -813.8 EBITDA 7.4 18.1 4.5 62.5 52.7 Depreciation & Amortisation 8.0 7.7 23.7 20.2 -29.5 EBIT -0.6 10.4 -19.2 42
Slide 6: Business areas - OPTECH and INTECH
Business areas - OPTECH OPTECH (MNOK) 125 98 109 105 107 104 101 93 97 100 73 82 Revenues 75 50 25 2008 0 2007 1Q 1Q 20 2Q 2Q 3Q3Q 4Q 4Q 2009 16,4 15 10 9 9,4 10,7 8,5 10,3 EBITDA 5,8 -5,7 5 0 -5 -2,4 -4,4 -10 ● 2Q revenues decreased by 22% compared to last year. ● 2Q EBITDA level fell significantly
Slide 7: Market segments
Market segments Geographic segments (YTD) • Norway dominating Other Iceland 11 % 6% Medit. 1% segment • Importance of Chile UK 7% Norw ay 54 % reduced N. Am erica Chile 12 % 9% AKVA group revenues within other species 140 120 100 CAGR 2003-2008 ~70% • Continued growth in a 80 number of regions MNOK.
Slide 8: Balance sheet items
Balance sheet items Working Capital (MNOK) ● Working Capital: Improvement seen in 2Q 220 200 199 Potential to improve working capital further. 180 162 172 168 160 138 141 140 120 105 102 109 100 80 60 40 20 0 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Working capital improvements expected: I
Slide 9: Financial position and cash flow statement
Financial position Equity (%) ● Equity: 70 % Sound equity position 60 % 50 % 49 % 50 % 50 % 47 % 47 % 46 % 46 % 45 % 45 % 40 % 30 % 20 % 10 % 0% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Cash balance (MNOK) ● Cash Position: 200 Cash Available cash 55 MNOK 175 Expected non-core asset 150 128
Slide 10: Order backlog and inflow
Order backlog and inflow Order backlog and inflow per quarter (MNOK) 400 326 382 373 305 281 253 263 198 189 202 200 183 200 155 147 90 0 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ● Order backlog is reduced by 122 MNOK compared to the same time last year and 80 MNOK compared to 4Q08. The decline
Slide 11: Outlook
Outlook ● Chilean market in crisis due to the challenging sanitary situation Implemented further cost reduction measures in 1Q and tasks are continuously evaluated. Opportunities in recirculation deliveries over the next years. Low impact from new investments expected in this market for 2009.
Slide 12: Outlook
Outlook ● Norway (contd.) Positive development in recirculation prospects. Closing of contracts expected in 1H. 65 new production licenses to be awarded in 2009 - decisions expected by June. Many companies now holding back investments in anticipation of new licenses. Decisions will spur new
Slide 13: Outlook
Outlook ● Order backlog and development The order inflow in 1Q was significantly lower than anticipated. Low inflow from the Chilean business. This market will remain challenging over the next years. The dominant shortfall in order inflow is from the Norwegian market. The prospect mass and m
Slide 14: Appendix
Background & highlights 1Q 2009 Financial review Outlook Q&A 27 Appendix 28 14
Slide 15: Group organisation and global presence
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 16: 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: