Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2017 Earnings Presentation
36 slides from Akva Group Asa's earnings presentation, Nov 3, 2017
Slide 1: Q3 2017 Presentation
Q3 2017 Presentation Oslo – November 3rd 2017 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q3 2017 – by CEO Hallvard Muri
Highlights Q3 2017 – by CEO Hallvard Muri
Slide 4: Continued strong growth
Continued strong growth Order intake • Overall increase in order intake of 31% compared to Q3 2016 +31% 778 • Strong order intake in Europe & Middle East with an order intake 48 of 114 MNOK in the quarter 589 561 303 546 533 51 • Americas continue the good development with a strong order 31 69 33 SW
Slide 5: Delivering on a strong order backlog
Delivering on a strong order backlog Revenue • 37 % increase in revenue compared to Q3 2016 +37% • Strong market in the Nordic region is a contributor to a 31% increase in revenue in Nordic YoY • Strong quarter in Americas, revenue more than 537 510 doubled from Q3 2016 449 484 393 408 344 354 • Lan
Slide 6: EBITDA margin stabilize on a higher level
EBITDA margin stabilize on a higher level EBITDA • EBITDA increase of 60% compared to Q3 2016 • EBITDA margin of 12,6 %, up from 10,8 % in Q3 2016 +60% • Strong quarter in the Nordic region, with ASA Nordic and AKVA Marine Services as the main contributors. EBITDA doubled in the region from last yea
Slide 7: Ninth quarter in a row with growth in order backlog
Ninth quarter in a row with growth in order backlog Order backlog • Third quarter 2017 – Highlights +56% 1 380 1 318 – Strong sales and order intake 1 077 998 629 620 – Order backlog end of September of 1.38 BNOK 886 822 430 697 412 649 417 – EBITDA of 61 MNOK in the quarter 283 437 264 698 751 586
Slide 8: Where do we deliver
Where do we deliver AKVA group’s geographical regions Income distribution Q3 2017 21%(12%) 14%(13%) 65%(75%) Nordic Americas Export Nordic AKVA group Export Agents and Distributors Americas
Slide 9: Development in OPEX based revenue
Development in OPEX based revenue 150 35 • Growing revenue in the Marine Service business in Norway is 30,6% contributing to the positive development over Q2 28,3% 29,0% 30 26,0% 27,1% • The Marine Service business in Chile has started and business 24,7% plans is under development to grow this segme
Slide 10: Revenue by product group and species
Revenue by product group and species By product groups – Q3 2017 By species – Q3 2017 Software Non Seafood S&AS Land Based Other species 9,5%(14,4%) 0,1%(0,2%) Land Based Tech 7,6%(11,2%) 17,2%(21,5%) 7,8%(9,3%) 53,8%(47,9%) Cage Based Tech 21,1%(21,2%) 82,8%(74,4%) S&AS Cage Based Salmon Cage Based
Slide 11: Q3 – Operational Highlights
Q3 – Operational Highlights • Continued positive market development in Chile • Stepping up activity and presence on the Canadian east coast • New office in Spain developing well and established office in Greece to further focus on the Mediterranean market • Continued good performance in Norway • Lan
Slide 12: Atlantis Subsea Farming – risk management
1. Atlantis Subsea Farming 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 13: Financial performance Q3 2017 – by CFO Simon Nyquist Martinsen
Financial performance Q3 2017 – by CFO Simon Nyquist Martinsen
Slide 14: Q3 2017 – Financial highlights
Q3 2017 – Financial highlights Revenue 537 • 37 % growth, strong contributions from Nordic and 510 484 Americas 449 393 402 408 • Last twelve months order intake and sales now at 330 355 354 344 325 2,474 MNOK and 1,980 MNOK respectively 310 301 305 • The order book has grown to 1,380 MNOK at the en
Slide 15: Q3 2017 – Financial highlights
Q3 2017 – Financial highlights 80 EBITDA (MNOK) • A very strong quarter for AKVA Marine Services, ending the 65 61 60 54 quarter with an EBITDA of 12 MNOK 41 43 41 38 40 40 32 34 27 24 27 24 • All entities in the Nordic region is performing above last year 20 13 0 Q1 Q2 Q3 Q4 • The entities in the A
Slide 16: Cage Based Technologies
Cage Based Technologies Nordic • All entities contributing positively YoY Revenue and EBITDA % 400 14 • Very strong quarter for AKVA Marine Services 363 12,6% 350 46 12 • Revenue up 31% compared to Q3 2016 10,4% 300 Americas 10 • Another strong quarter in Chile, improving the EBITDA 245 93 with 7.3
Slide 17: Land Based Technologies
Land Based Technologies Revenue and EBITDA % 84 85 10 1 • Good underlying performance in Aquatec 80 77 9,1% Solutions and Plastsveis in the quarter 75 0 8 with a total EBITDA of 6.4 MNOK 70 6,3% 65 • Cost reductions in AKVA group Denmark 60 6 starting to give effect, ending the quarter 55 83 with po
Slide 18: Software
Software Revenue and EBITDA % • AKVA group Software ends the 40 38 30 24,3% 1 quarter with an EBITDA of 4.2 35 33 4 MNOK 1 19,9% 20 30 3 • All entities with stronger 25 margins in the third quarter, 10 compared to both Q1 and Q2 20 34 0 15 29 • We are currently carrying out a strategic evaluation of
Slide 19: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2017 2016 2017 2016 2016 Q3 Q3 YTD YTD Total Order backlog 1 379,9 885,6 1 379,9 885,6 997,7 Order intake 546,0 417,4 1 913,5 1 391,2 1 952,0 • Whereof Land Based is 629 MNOK P&L OPERATING REVENUES 483,9 353,8 1 531,3 1 154,5 1 603,1 • Increased depreciation mainly d
Slide 20: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 140 131 150 10 10 127 126 124 134 134 122 9 9 109 118 120 9,1% 8,8% 7,5% 8,8% 8 9,6% 9,4% 115 8 6,8% 106 107 100 6,7% 7,7% 98 102 100 6,2% 7 7 100 7,1% 7,2% 6 85 5,5% 6 80 64 5,0% 256 4,3% 5 5,7% 5 226 23
Slide 21: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown YTD 2017 60 000 11,2% 12 Rental Intangible 50 000 9,5% 10 12 177 21 089 40 000 6,9% 8 5,9% 5,9% 30 000 5,5% 6 57 368 4,5% 4,2% 4,0% 20 000 4 32 853 31 666 23 114 24 407 24 728 10 000 17 067 19 495 2 15 871 75 263 0 0 3Q 2015 4Q 2015 1Q 2016 2Q 201
Slide 22: Net debt/EBITDA of 1.4
Net debt/EBITDA of 1.4 Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 400 2,0 2,10 Net debt 30.06.2017 298 368 EBITDA -60 804 310 298 Income taxes paid 1 125 1,6 1,75 300 1,5 279 Net interest paid 3 151 1,4 1,4 213 212 1,40 Capex 19 495 200 172 Acquisitions / Divestments - 136 1,1 1,0
Slide 23: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 0,70 500 460 473 476 40 0,7 443 437 446 0,63 450 428 435 38,9% 435 0,59 38,0% 37,1% 35 39,6% 38,9% 31,4% 0,6 400 29,4% 31,6% 31,3% 30 0,49 0,49 350 0,5 300 25 0,37 0,4 250 20 0,32 200 0,3 15 0,22 150
Slide 24: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 17,8% 18,6% 13,9% 14,7% 14,0% 13,5% 15,0% 16,1% 15,1% 14,6% 12,4% 13,2% 12,7% 11,1% 11,4% 10,9% 9,8% 9,6% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Slide 25: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Note 2017 2016 2017 2016 2016 (NOK 1 000) Q3 Q3 YTD YTD Total Net cash flow from operations 54 275 33 221 159 382 93 664 105 596 Net cash flow from change in w orking capital 1 550 -25 355 -80 277 10 404 106 050 Net cash flow from ope
Slide 26: Balance sheet
Balance sheet BALANCE SHEET 2017 2016 2016 (MNOK) 30.09 30.09 31.12 ASSETS 1 521 1 179 1 376 Intangible non-current assets 578 411 575 Tangible non-current assets 197 138 151 Financial non-current assets 10 5 6 Inventory 223 178 186 Receivables 389 321 292 Cash and cash equivalents 123 126 166 LIABI
Slide 27: 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 VERDIPAPIRFONDET ALFRED BERG NOR 1 139 565 4,4 % 100 50 000 000 470
Slide 28: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 29: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 11 and service exchange countries countries. partner since 2006 over 40 927 years employees
Slide 30: Turn-key solutions
Turn-key solutions Cage Based Technology Land Based Technology Software
Slide 31: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 32: Order backlog and inflow, 2014 through 2017
Order backlog and inflow, 2014 through 2017 Order backlog Order intake 1 380 778 1 318 1 077 589 304 629 998 546 561 620 533 886 103 504 72 430 822 441 92 460 697 412 417 368 101 89 643 417 649 327 348 250 214 57 350 547 437 36 478 494 504 6 80 63 452 93 283 286 264 243 75 118 349 93 12 486 475 201
Slide 33: Outlook – AKVA group
Outlook – AKVA group • Underlying market assumptions continue to be strong • Customers are increasing investments in Land Based and post smolt • The Atlantis project is still at the Ministry for final decision • Strategy process to be concluded in Q4 • Continued focus on internal improvements
Slide 34: Slide 34
Slide 35: Customer Focus
CUSTOMER FOCUS AQUACULTURE X09 KNOWLEDGE RELIABILITY ENTHUSIASM! GROUR
Slide 36: AKVA group
AKVAcRour