Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2023 Earnings Presentation
46 slides from Akva Group Asa's earnings presentation, Nov 10, 2023
Slide 1: Q3 2023 Presentation
Q3 2023 Presentation Klepp, 10 November 2023 Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 2: Pioneering a better future
Pioneering a better future AKVAcrour
Slide 3: Agenda Q3 2023
Agenda|Q3 2023 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 4: Highlights Q3 2023
Highlights|Q3 2023 ▪ Revenue of MNOK 817 and EBIT of MNOK 29 in the third quarter ▪ Acceptable overall order intake in Sea Based but slow market in Land Based due to the resource tax ▪ A rightsizing process, targeting MNOK 45 in annual cost savings, will be carried out in Q4 to adapt the organizatio
Slide 5: Key figures Q3 2023
Key figures|Q3 2023 Revenue EBITDA EBIT 817 MNOK 78 MNOK 29 MNOK 115 840 105 66 806 817 771 58 738 79 78 32 29 25 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 -59 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 * Note: EBITDA of MNOK 25 in Q3 22 is impacted * Note: Negative EBIT of MNOK 59 in Q3 22 is
Slide 6: Key figures YTD Q3 2023
Key figures|YTD Q3 2023 Revenue EBITDA EBIT 2 631 MNOK 223 MNOK 77 MNOK 312 2 596 2 631 284 168 2 422 2 420 2 289 241 138 223 101 77 131 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 -42 Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 * Note: EBITDA of MNOK 131 in Q3 22 is impacted * Note: Negative EBIT
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 1 984 1 170 1 062 1 688 106 30 1 579 1 905 889 103 1 728 95 650 34 33 527 1 018 32 683 600 812 167 4 21 Digital Digital 823 613 690 574 Land Based 902 Land Based 450 861 817 731 672 Sea B
Slide 8: Rightsizing of organization in Q4
Rightsizing of organization in Q4 ▪ After introduction of the resource tax the Norwegian market has been slow both for Land Based and parts of the Sea Based business ▪ AKVA has shown patience, continued to invest in all three business areas and maintained capacity in the belief that the market will
Slide 9: Strategic and Operational Status
Strategic and Operational Status Pioneering a better future
Slide 10: 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 11: 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 12: Deep farming concepts
Deep farming concepts - Can solve one of the biggest sustainability challenges in aquaculture: salmon lice Precision Feeding NAUTILUS™ TUBENET™ OptiCage Pioneering a better future
Slide 13: Current digital solutions
Current digital solutions ▪ 104 sites worldwide on ▪ Global market share of 60% ▪ 291 sites worldwide on ▪ First commercial contract recurring revenue model recurring revenue model won in Q3 23 ▪ 25 new sites in 2022 ▪ 125 new sites in 2022 ▪ 64 new sites in 2023 ▪ 116 new sites in 2023 Pioneering a
Slide 14: 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 15: 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 16: 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 ▪ AKVA has signed RAS contract for phase III with additional annual capacity of 12,000t. Start-up of
Slide 17: Expected activity level for Land Based
Expected activity level for Land Based ▪ Total order backlog of BNOK 1,7 ▪ 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 18: Agenda Q3 2023
Agenda|Q3 2023 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 19: Q3 2023 – Income statement
Q3 2023 – Income statement NOK million 2023 2022 2023 2022 2022 ▪ Revenues decreased by MNOK 23 compared Q3 Q3 YTD YTD Total Revenue 817 840 2 631 2 596 3 376 to Q3 22 Cost of materials 467 523 1 561 1 633 2 107 Payroll expenses 220 226 684 657 881 Other operating expenses 53 66 163 175 230 ▪ EBIT i
Slide 20: Revenue development
Revenue development ▪ Last twelve months order intake and revenue was MNOK Revenue (MNOK) 4,441 and MNOK 3,411, respectively 840 806 817 771 ▪ Revenue decreased by 3% compared to Q3 22 738 ▪ Reduced revenue in both Sea Based and Land Based compared to Q3 22 but positive trend continues in Digital wi
Slide 21: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 940 940 874 33 840 27 874 63 817 840 25 779 174 74 817 33 52 779 127 40 134 24 192 124 70 150 96 135 163 123 178 131 180 193 193 733 681 655 660 592 572 AustralAsia 518 502 460 394 Europe & Middle East Digital Americas
Slide 22: EBITDA and EBIT development
EBITDA and EBIT development ▪ Continued positive trend and EBITDA EBITDA EBIT margin of 9,5% in Q3 120,0 9,5% 10,0 120,0 4,0% 3,5% 4,0 9,1% 110,0 9,0 3,0 100,0 100,0 ▪ Profitability in Land Based is low and is 8,0 80,0 1,2% 2,0 90,0 1,0 mainly related to high cost base and partly 80,0 6,7% 7,0 60,0
Slide 23: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA* 793 11,6% 800 600 12 1 800 4,27 4,35 4,55 731 4,16 11 4,20 700 1 600 629 500 10 3,85 600 8,6% 9 1 400 3,33 3,50 8,2% 522 526 398 3,15 400 8 1 200 2,71 1 079 1 123 1 088 500 2,80 7 988 5,9% 6,0% 293 1 000 894 2,45
Slide 24: Development Net interest-bearing debt
30.06.2023 1 123 EBITDA 78 Net interest 23 1 Corporate taxes Pioneering a better future Change WC 106 CAPEX 44 NIBD Q3 2023 MNOK New IFRS 16 liability 25 Currency & Other 56 30.09.2023 1 088 31.12.2022 988 EBITDA 223 Net interest 62 Corporate taxes 13 Change WC 89 CAPEX 140 Development Net interest-
Slide 25: Capital expenditure
Capital expenditure CAPEX (MNOK) ▪ Total CAPEX of MNOK 44 in Q3 23 where MNOK 18 applies to our three innovation agendas 64 ▪ Total CAPEX year to date of MNOK 140 10 44 44 11 8 32 0 25 54 7 33 36 32 18 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Growth Maintenance Pioneering a better future
Slide 26: Dividend
Dividend Cash dividend (NOK per share) ▪ The company has decided not to pay any dividend in 2023 1,75 1,00 1,00 1,00 2019 2020 2021 2022 Pioneering a better future
Slide 27: Business segments
Business segments Pioneering a better future
Slide 28: Sea Based Technology
Sea Based Technology • Total revenue decreased by MNOK 21 while EBITDA margin Revenue (MNOK) and EBITDA-margin (%) increased from 11,5% in Q3 22 to 11,9% in Q3 23 • Order intake increased from MNOK 450 in Q3 22 to MNOK 574 in 1 300 18 Q3 23 1 200 16 1 100 Nordic 1 000 14 • Revenue increased by 9% in
Slide 29: 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 2 700 902 817 861 2 600 731 672 2 500 823 2 400 613 690 574 450 2 300 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 12M Revenue 12M Order Intake Order Backlo
Slide 30: Development OPEX based revenue
Development OPEX based revenue ▪ Positive trend and OPEX based revenue was MNOK 45 Revenue (MNOK) higher in Q3 23 compared to Q3 22 39,2% 350 40 35,8% 33,8% ▪ Year to date OPEX based revenue amounts to MNOK 755 300 33,1% 33,1% 35 and is 19% higher compared to last year 30 250 25 200 20 150 263 271 1
Slide 31: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) ▪ Revenue decreased by 7% in Q3 23 compared to Q3 22 134 1 0 124 ▪ Profit margins are still negative impacted by high cost base and 2 0 low project margins on parts of the project portfolio 100 ▪ Measures will be taken in Q4 to reduce the co
Slide 32: 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 1 728 812 1 062 683 527 167 0 34 4 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 12M Revenue 12M Order Intake Order Backlog Order Inta
Slide 33: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) ▪ Order intake of MNOK 21 in the quarter is MNOK 11 lower than the same quarter last year 50 40 38,0% 45 35 ▪ Recurring revenue base continue to increase, and revenue 40 increased by 32% in Q3 23 compared to Q3 22 29,9% 30 35 33 2 25 30 ▪ EBITDA margin de
Slide 34: Digital order intake and backlog development
Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 200 180 160 140 162 120 100 150 95 103 106 80 89 60 32 33 30 21 40 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 12M Revenue 12M Order Intake Order Backlog Order Intake Pi
Slide 35: Outlook
Outlook Pioneering a better future
Slide 36: Outlook
Outlook ▪ Salmon prices expected to remain strong driven by reduced supply ▪ The implications from the introduction of new resource tax in Norway are negative both for Land Based business and parts of Sea Based business ▪ Measures will be taken in Q4 23 to adopt the cost base to the current and expe
Slide 37: 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 38: Agenda Q3 2023
Agenda|Q3 2023 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 39: Appendix
Appendix Pioneering a better future
Slide 40: 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 1.410 employees Companies in 11 Technology leader stock exchange 2022: countries through 40 years since 2006 NOK 3.4 billion Pioneering a better futu
Slide 41: 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 42: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2023 30.9. 2022 30.9. 2022 31.12. Intangible fixed assets 1,3 1 095 311 972 404 989 063 Deferred tax assets 62 202 16 582 44 902 Tangible fixed assets 639 757 615 090 635 245 Long-term financial assets 328 103 310
Slide 43: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2023 Q3 2022 Q3 2023 YTD 2022 YTD 2022 Total Profit before taxes -3 359 -108 374 23 855 -115 211 -151 864 Taxes paid 544 14 642 -11 760 -6 237 -11 370 Share of profit(-)/loss(+) from ass
Slide 44: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 18 703 105 6 600 192 51,0 % EGERSUND GROUP AS 18,0 % Israel Corporation Ltd NOR ISR Last 12 months Share price Trading volume 1 849 784 5,0 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 1 090 759 3,
Slide 45: 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 46: Pioneering a better future
Pioneering a better future AKVAcrRour