Akva Group Asa · OSL:AKVA
Akva Group Asa — Investor Day (November 2020)
114 slides from Akva Group Asa's investor day presentation, Nov 24, 2020
Slide 1: Welcome to Capital Markets Day
Welcome to Capital Markets Day November 24, 2020 at 13.00 (CET) 2
Slide 2: 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 3: Content
Content TOPIC Presented by 1. AKVA group introduction (short video) 2. Macro perspectives and Overall Knut Nesse, CEO strategy 3. Financial perspective Ronny Meinkøhn, CFO 4. Innovation agenda Espen Fredrik Staubo, CIO 5. Cage based Erlend Sødal, COO Cage based Nordic 6. Land based Johan Fredrik Gje
Slide 4: Market outlook 2020-2030
Market outlook 2020-2030 – CMD 24.11.20 3
Slide 5: Historical strong volume development despite supply constraints
Historical strong volume development despite recent supply constraints – ~12% estimated underlying untapped demand potential Global demand and price development for salmon 2010-2019 Consumption of salmon and trout WFE in mill. tons Key demand drivers 3.0 Focus on environment and health increasing +5
Slide 6: Transition of HORECA volumes to retail during COVID
…especially impressive transition of HORECA volumes to retail during COVID pandemic – retail volumes expected to remain strong due to changes in preferences Indications of change in consumers preferences, resulting in salmon capturing a EU and US retail volumes significantly up in 2020 larger share
Slide 7: Consumers willing to pay a premium for salmon vs. other proteins
Consumers willing to pay a premium for salmon vs. other proteins Salmon versus other protein sources 5.8 Price 4.1 benchmark1, 2.3 2019 EUR/kg 1.3 • Current price level shows that consumers are willing 39 to pay premium prices for salmon vs. other proteins, Carbon likely due to health benefits and s
Slide 8: Increasing customer awareness on sustainable products
Increasing customer awareness on sustainable products – trend expected to accelerate over the next decade Recent survey shows high consumer focus on sustainable products Possible megatrends likely to further increase environmental N = 6 000 across 11 countries, conducted by Accenture for ACC in 2019
Slide 9: North American and Asian markets dependent on imports
The North American and Asian markets have historically been dependent on (and limited by) import from Norway and Chile 2019: Main salmon intercontinental trade flows, volume in th. tons WFE Intercontinental trade Europe Fresh Frozen Note: Not including trade flows less than 1 000 tons 17 Supply Dema
Slide 10: Underlying demand growth implies 1–2 million ton increase by 2030
Underlying demand growth implies 1–2 million ton volume increase by 2030 Extrapolation of underlying demand growth for salmon 2015-2030 Consumption of salmon WFE in mill. tons “What you need to believe in” in 2030 5.0 ’15-’19 ’19-’30 Doubling in volume growth for High demand growth (~5%)1 2% 4% Euro
Slide 11: Traditional growth and new technologies can cover demand
Traditional growth and new emerging technologies have the potential to cover underlying demand Indicative supply potential Volume Supply sources/ drivers 2030, mill. tons 2019, tons What to believe in? • 1-2% supply growth driven by increased capacity and utilization Traditional 0.3–0.6 • Currently
Slide 12: Freight, tariffs increase competitiveness of land-based
Freight, tariffs and distribution increase the competitiveness of land-based – 51-65 NOK/kg required to be competitive dependent on region Asia: Competitiveness land-based, NOK/kg HOG (fresh) North America: Competitiveness land-based, NOK/kg HOG (fresh) Handling, storage, importer profit Airborne fr
Slide 13: Land-based production achieves favorable payback
Land-based production achieves favorable payback if 40-50 NOK/kg production costs Capex new capacity NOK/kg (HOG) Implied payback, Capex/EBITDA2 Licenses1 Other 170 Other 20 ~190 9.0 Conventional 6.9 3.6 6.9-10.5 ~200 Land-based Conservative 5.6 2.1 5.6-7.7 1) 219 NOK/Kg MAB in latest license round.
Slide 14: 2030 high-level market scenarios
2030 high-level market scenarios driven by land-based cost position and consumers' environmental awareness 2030 land-based cost competitiveness Cost disadvantage Cost advantage CostLB > CostNorway + Freight costs to US, Asia CostLB < CostNorway + Freight costs US, Asia 2020 level environmental aware
Slide 15: All four scenarios involve significant land-based volumes
All four scenarios involve significant land-based volumes, but also sustained conventional growth Land-based supply Fresh undersupply 2030 supply/demand scenarios 2030 land-based cost competitiveness Conventional Volumes in mill. tons WFE Cost disadvantage Cost advantage 1 Conventional and selective
Slide 16: Scenario 4: Land-based driver of supply growth
Scenario 4: Land-based driver of supply growth in long-term, but limited by time frame until 2030 Frozen Landbased Frozen Frozen/ Fresh Fresh undersupply Scenario 4: Main salmon intercontinental trade flows 2030, Europe (incl. Russia) Conventional Fresh Volume in mill. tons Supply Demand North Ameri
Slide 17: Scenario 4: Paradigm shift of land-based farming requires capex
Scenario 4: The paradigm shift of land-based farming will require major capex investments until 2030 and beyond Mill. tons WFE +5.1% 4.5 • Restricted fresh supply requires market effort to 1.9 convert demand from fresh to frozen AKVA Group implications: Europe 2.6 Demand NAM 1.3 1.0 • Asian markets
Slide 18: AKVA Overall Strategy
XO AKVA Overall Strategy 17 AKVAcRouP
Slide 19: Underlying demand growth implies 1–2 million ton increase by 2030
Underlying demand growth implies 1–2 million ton volume increase by 2030 Salmon demand has increased by 1.1 mill tons from 2009-2019. “Base case” assumes similar demand growth till 2030 Consumption of salmon WFE in mill. tons 5.0 High demand growth (~5%)1 4.6 2019-2030: 4.5 Base case price-neutral v
Slide 20: Overall strategy for Cage Based Salmon Farming
Overall strategy for Cage Based Salmon Farming: Continue in the forefront offering Solutions and services to improve fish health and productivity and increase production AKVA subfeeder and lights Tubenet™ Atlantis subsea farming Strong ramp up of Innovation and R&D capabilities: 1. Innovation resour
Slide 21: Overall strategy for Land Based Salmon Farming
AKVA’s Overall strategy for Land Based Salmon Farming Delivering complete scope of fish Market leading Zero Water Concept farming technology (e.g. feeding, fish 1 RAS enabling sustainable and cost- 2 tanks, fish handling, camera, lights, effective production sensors, control system) Data driven insi
Slide 22: Strengthened Management Team
Strengthened Management Team -with a total of 125 years of aquaculture experience Knut Nesse CEO Ronny Meinkøhn Espen F. Staubo CFO CIO Erlend Sødal Andrew Campbell Johan F. Gjesdal Per A. Hjetland Asle K. Bratteli COO CB Nordic COO CB International COO Land Based CCO CDO Digital Technology for sust
Slide 23: 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 Orga
Slide 24: ESG focus
ESG focus • Good Environmental, Social and Governance Solutions improving sustainability – product examples: principles (ESG) are key to AKVA group global activities. 1. Tube net: Reduced lice infestations, less discharge of • Our business is inherently dependent on a lice medication, improve health
Slide 25: AKVA Business profile
AKVA Business profile Solutions & Products: Supported by R&D and result of continuous investment in Innovation. Business Model: Primarily “Asset light”. Service & After sales (S&AS): May be more capital intensive and provides higher return. Larger projects: Strive to be “cash-positive”. Internationa
Slide 26: Technology for Sustainable Biology
Technology for Sustainable Biology Technology for sustainable biology 25
Slide 27: Financial Outlook – by CFO Ronny Meinkøhn
Financial Outlook – by CFO Ronny Meinkøhn 36 26
Slide 28: High focus on organic growth
High focus on organic growth …supported by strong innovation agenda and further development and improvement of digital solutions Topline growth: Innovation Agenda: Digital solutions: Mainly organic Significant ramp up of activities and Step change in development and Leverage on strong produc
Slide 29: Strong topline growth in all business segments
Strong topline growth in all business segments …and paradigm shift on Land-based farming combined with strengthened international footprint Segment Geography Australasia Land Based Europe Digital solutions Americas Cage Based Nordic 2020 2023 2020 2023 * For illustration purposes only * For illustra
Slide 30: Salmon to remain key focus area
Salmon to remain key focus area …and preparing to increase OPEX based revenue through our asset light service model Species OPEX based revenue 89,1% 89,5% 3 500 90 1 000 36,7% 40 Two new 84,4% 229 36,1% 80 900 33,3% service 3 000 107 35 stations in 227 70 800 2 500 118 30 Norway 174 135 60 700 600 2
Slide 31: Increased focus on operational excellence
Increased focus on operational excellence «The AKVA way» - our operational excellence program Strengthening of the performance culture Simplifying work methods and organizational set-up 1 Increase efficiency to reduce overall costs on projects and products while increasing customer satisfactio
Slide 32: Ambitious financial targets
Ambitious financial targets Minimum 25% increase in EBIT Minimum 15% return on average capital year-on-year 2021-23 employed (ROACE) in 2023 15,0% 10,0% 9,1% 8,5% Increased dividend capacity Operational Land Based Cage based Digital Total 2018 2019 YTD Q3 20 2023 excellence • ROACE is calculated ex
Slide 33: Financed to execute organic growth strategy
Financed to execute organic growth strategy Available cash NIBD / EBITDA Debt capacity 600 3,50 2 000 3,3 1 200 1 800 3,0 3,15 500 2,9 1 600 1 000 423 2,80 1 400 400 413 2,45 800 405 1 200 2,10 300 1 000 562 600 1,75 516 800 200 409 1,40 600 400 780 667 616 1,05 400 100 200 0,70 200 0 0 0,35 0 Q1 20
Slide 34: Divestment of AKVA Marine Services
Divestment of AKVA Marine Services • Decided to initiate sales process and Danske Bank has been engaged as financial advisor • Focus to create a robust process to take care of shareholder values Technology for sustainable biology 33
Slide 35: Financial outlook - summary
Financial outlook - summary Strong organic growth EBIT growth ≥ 25% year- Operational excellence on-year Financial Increased dividend ROACE ≥ 15% in 2023 robustness capacity 34
Slide 36: Innovation Agenda
Innovation Agenda – presentation for CMD 24.11.20 35
Slide 37: Innovation to exploit the untapped demand potential
Starting point: Innovation to enable Salmon farming industry to exploit the Untapped Demand Potential with sustainable growth Increased Improved fish More productivity Cost-efficient health and environmentally and safe products and biological friendly operations for services performance solutions pe
Slide 38: World class R&D to secure long term success
World class R&D to secure Long term success for AKVA group… … by matching Customer needs with latest Sciences and Technologies to deliver tomorrow’s successful sustainable Industry Solutions Customer and commercially oriented The best people Continuously updated on competing Balancing the need for s
Slide 39: Already in the forefront with innovative and sustainable solutions
AKVA group is already in the forefront with Innovative and sustainable solutions offering fundamental improvements for the industry… AKVA subfeeder and lights Tubenet™ Atlantis subsea farming Subsea farming: • Secure fish health and preventive lice solutions • Farming on more exposed sites • Stable
Slide 40: Further strengthen Innovation as key enabler
…but with industry growth prospects, we further strengthen Innovation - key enabler for AKVA group strategy of Organic growth Strong ramp up of Innovation and R&D capabilities: • Innovation resources/spending from 2021: + 50%. Organic growth. Realizing • Centralize Innovation facilities. Efficiency.
Slide 41: Sustain development and step change innovation
Successful implementation requires balancing short- and long-term development: «Sustain development» and «Step change innovation» Sustain position on core products Step change solutions • Incremental development • Based on insights and trends to generate ideas • Structured regular input from custome
Slide 42: Ambition: one new step change solution per year
Our ambition: To release at least one new step change solution per year. Requires a changed approach. Dedicated AKVA group Team, investments and processes to facilitate Step Change innovations. Major industry challenges offer opportunities for AKVA group examples of step change innovations new Innov
Slide 43: Combining creativity with structure
….reflecting the demanding task to combine creativity with structure Generating ideas from insights CUSTOMERS • Truly Innovative products demand a creative process combining insights with idea generation Start Partners -ups Business • Differs from incremental product development and Units improvemen
Slide 44: Innovation program covers major capacity growth areas
Closing comments: AKVA group’s Innovation program covers the major capacity growth areas Indicative supply potential Volume Supply sources/ drivers 2030, mill. tons 2019, tons AKVA group present position and growth prospects • World leading supplier of a full range of products Traditional • Spear he
Slide 45: Cage Based
Cage Based – presentation at CMD 24.11.2020 44
Slide 46: Offering everything needed for sustainable salmon farming
How international salmon farmers know us for decades: AKVA group – offering “everything needed” for sustainable salmon farming… From single components to complete solutions… Extensive presence to serve the Global industry AKVA groups Digital solutions are becoming more and more advanced to support h
Slide 47: Global supplier, local presence in key markets
Global supplier. Local presence in key markets. Pictures of AKVA people and some supplier or customer sites For the Global salmon industry it is attractive to have a solid and trusted global supplier with local presence in all the markets they have operations. Chile South Africa Norway Scotland Icel
Slide 48: AKVA group's global presence
AKVA group’s global presence Our presence Strategic supply chain partners Technology for sustainable biology 47
Slide 49: One third of Cage Based revenues from international salmon business
1/3 of Cage Based revenues comes from International salmon business Chile No. 1. Remaining from Canada, UK & Ireland and other CB Revenue split MNOK International success requires balancing proven solutions with understanding of local differences. Nordic Americas EME Some examples: • Plastic cages •
Slide 50: A broad range of solutions offered
A broad range of solutions offered Plastic pens Steel pens Feed Barges Nets Feeding Systems Lights Work Boats ROV/Net cleaning Battery packs Digital Cameras Sensors Technology for sustainable biology 49
Slide 51: Innovative solutions to improve fish health
Farming in the deep: Innovative solutions to improve fish health farming economy Benefits from Deep sea farming: AKVA commercial solutions in operation • Avoid or reduce unwanted surface influences like lice, algae, currents, high temperatures. ™ • Better fish health and reduced mortality • Improved
Slide 52: Tubenet concept to reduce lice infestations
TubenetTM our patented concept to reduce lice infestations without touching the fish • Light and Deep sea feeding motivating the salmon away from the surface water • The salmon can fill the swim bladder like normal • Concept tested and developed since 2012. Delivered to 16 locations in Norway, The N
Slide 53: Industrialized sustainable fish farming
Industrialized sustainable fish farming: Biology, nature forces and high-tech solutions AKVA group is providing advanced technology tools for Monitoring, control and optimizations of daily farm operations under harsh conditions AI-based feeding and decision making, combining real time condition moni
Slide 54: Extensive Service and After sales
Extensive Service and After sales to serve our customers….. AKVA deliver broad range of services related to: • Nets & Moorings inspection & maintenance • Sensors/Cameras inspection and maintenance • Feeding systems maintenance • Net cleaning services • Remote Underwater Operated Vehicles (ROV) servi
Slide 55: Increase productivity, reduce footprint and environmental impact
Support salmon industry to increase productivity, reduce footprint and negative environmental impact. (We believe in footprint reduction through profitability) Improving fish health, productivity and profitability Reducing negative environmental impact 1. Tubenet™ to reduce lice infestations 1. Tu
Slide 56: Land Based
Land Based – presentation at CMD 24.11.20 55
Slide 57: Long-list for land based projects keeps growing
Long-list for land based salmon farming projects keeps growing – contracting of up to 1M tonnes towards 2030 seems more likely than ever Land based salmon farming project long list (‘000 tonnes) +1 000 ~1 050 Japan Other Europe USA China ~500 ? Sweden Norway 1 700 Atlantic Sapphire ~450 1 220 1 000
Slide 58: Significant investments in grow-out and smolt facilities towards 2030
Significant investments in both full grow-out and smolt production facilities towards 2030 235 Billion NOK 12 23 Smolt: 30 - 40 % 106 On-growing: 40 - 50% 300g smolt ~45% 200 Assuming contracting of 1M 129 tonnes towards 2030 at Capex: 200 mNOK / kt ~55% RAS Grow-out Smolt Facilities Norway Smolt Fa
Slide 59: Business Development
AKVA with a phased business development process to ensure the most attractive opportunities being converted into delivery projects Typical lead time: 3 years Business Development Pre-project and Engineering and Detailed design Sales pipeline basic design design and delivery Pre-project contract Engi
Slide 60: Overall strategy for land based salmon farming
AKVA´s overall strategy for land based salmon farming Delivering complete scope of fish Market leading Zero Water Concept farming technology (e.g. feeding, fish 1 RAS enabling sustainable and cost- 2 tanks, fish handling, camera, lights, effective production sensors, control system) Data driven insi
Slide 61: Zero Water Concept RAS most sustainable technology
1 2 3 4 AKVA’s Zero Water Concept RAS is the most sustainable production technology for land based salmon farming RAS – standard (96% - 99%) re- RAS – Zero Water Concept Flow-through (0% re-use) Re-use (60% re-use) use) (99,9% re-use) New water constantly flowing into Flow-through with re-use of wat
Slide 62: Differentiating Zero Water Concept RAS
1 2 3 4 AKVA with differentiating Zero Water Concept RAS 0.1% of total system 0,1 % of system volume Min. 100% of system Complete system water 40 liters of new water water volume added to going out per hour water recycled per hour exchanged every 40 days used per kg feed per day the system per hour
Slide 63: Delivery scope standardized around core technology products
1 2 3 4 AKVA’s delivery scope to be standardized around core technology products Complete production technology AKVA core RAS AKVA core farming Auxiliary technology technology equipment • Complete RAS • Feeding system • Water intake/ modules incl. ZWC • Fish tanks treatment • Water pumps, • Fish han
Slide 64: Standardised 5000 tonnes module for grow-out
1 2 3 4 AKVA with a standardised 5000 tonnes module for grow-out WASTE WATER • Output of 5,000 tonnes live Atlantic salmon per year BUFFER TANKS • Can be expanded to 10,000 tonnes by adding five more grow- outs GROW-OUT • The 5,000 tonnes layout takes up 35,000 m2, but with flexibility to arrange su
Slide 65: Precision Farming: digitizing land based salmon farming
1 2 3 4 Precision Farming: Digitizing land based salmon farming to reduce risk and optimize production • Efficient and consistent operations: auxiliary system integration, real time recommendations, Operations automation State of the art • Optimal and safe production: smart water quality and RAS per
Slide 66: Production Advisory Services
1 2 3 4 Production Advisory Services will be a key offering to make sure customers achieve consistent output with the highest productivity • Establishment of a land based RAS production competence group with cross functional competence – Water treatment – Biology and fish health – Technical – Feedin
Slide 67: International Sales
International Sales – CMD 24.11.20 66
Slide 68: Feed and service barges: an international success story
AKVA group Feed and service barges Turned into an international success story • AKVA group has the last 15 years delivered 276 Feed barges. • 85% delivered to Norway (market share 35–45%). • In 2017 AKVA group established a dedicated sales force to boost the international sales. • This has resulted
Slide 69: International sales to Scotland in 2017/18
International sales to Scotland in 2017/18 • Customer: 2 of the biggest production sites in Scotland • 3 barges with 450 – 650-tonnes feed capacity • The barges has endured rough weather and proven AKVA’s barge quality • These deliveries were combined with AKVA group cage & infrastructure installati
Slide 70: First International sales to Chile and US
First International sales to Chile and US -2019/20 AKVA group – Chile was in Q4 2019 awarded a contract of four AM 600-ton Barges to a customer in Chile. These barges have accommodation for 20 people and are equipped so they can live on the barge for several weeks. AKVA group – North America was ear
Slide 71: A feed barge is much more than feed storage
“A Feed barge” much more than Feed storage & distribution: Advanced control center, veterinary lab and living quarters • Our new Feed barges with V-shaped hull, gives a unique, softer and more controlled behavior in exposed sites with rough sea. 16 such barges have been delivered and are in daily op
Slide 72: The toughest Feed and Service Barge delivered to Norway Royal Salmon
October 2020: “The toughest Feed and Service Barge ever” delivered to Norway Royal Salmon’s Artic Offshore Farming (AOF) west of Tromsø…” Purpose : “Service base” for Norway Royal Salmon’s Artic Offshore Farming (AOF) where 2 semi-submersible steel structures will be placed, west of Tromsø, to opera
Slide 73: New international barge sourcing strategy
New international Barge sourcing strategy, to secure global delivery capacity and reducing lead times, in the years to come. • Last 15 years, about 60% of AKVA group barges AKVA group Shipyard partners have been built at shipyards in Estonia or Poland. • Following the new sourcing strategy, AKVA gro
Slide 74: Reduction of costs and CO2 with waterborne feeding
Major reduction of Costs and CO2 emissions with AKVA group Waterborne feeding systems and battery package • AKVA Hybrid Battery package (CAPEX of 2.0-2.5 Annual fuel costs MNOK* CO2 emissions tons/year* MNOK) has a payback time of 1-2 years -57% (reduced fuel costs) 2,3 Annual Diesel cost 679 • 57%
Slide 75: AKVA Digital
AKVA Digital – CMD 24.11.2020 74
Slide 76: Technology for sustainable biology
Technology for sustainable biology 75
Slide 77: Technology for sustainable biology
Technology for sustainable biology 76
Slide 78: Technology for sustainable biology
Technology for sustainable biology 77
Slide 79: Technology for sustainable biology
Technology for sustainable biology 78
Slide 80: Technology for sustainable biology
Technology for sustainable biology 79
Slide 81: AKVAconnect, Fishtalk, AKVA Observe
AKVAconnect Fishtalk AKVA Observe Technology for sustainable biology 80
Slide 82: AKVAconnect – digitalization & control
AKVAconnect – digitalization & control Technology for sustainable biology 81
Slide 83: AKVAconnect – Open Architecture
AKVAconnect – Open Architecture • Real time control • Open architecture • API’s to support 3rd party integrations • Connect to Artificial Intelligence solutions such as AKVA Observe • Connection to cloud services Technology for sustainable biology 82
Slide 84: Fishtalk
Fishtalk • Biological status from brood stock to harvest • Large global installation base • Many users with new functionality and integration requests • Key priority in the step wise development program Technology for sustainable biology 83
Slide 85: Fishtalk Plan
Fishtalk Plan Technology for sustainable biology 84
Slide 86: Data driven decisions
Data driven decisions Technology for sustainable biology 85
Slide 87: AKVA Observe – Precision Feeding
AKVA Observe – Precision Feeding 86
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Slide 90: Technology for sustainable biology
Technology for sustainable biology 89
Slide 91: Technology for sustainable biology
Technology for sustainable biology 90
Slide 92: Technology for sustainable biology
Technology for sustainable biology 91
Slide 93: Integration with feeding system
Integration with feeding system Data Available to Farmers Decision AIs Action Fish behaviour & feeding practices Integrate into: Automatic systems to: ▪ Sensor systems (4 major suppliers) ▪ Fully integrated control for farmers ▪ Reporting tools (Fishtalk) ▪ Perform complex automatic feed ▪ Feed syst
Slide 94: Technology for sustainable biology
Technology for sustainable biology 93
Slide 95: Technology for sustainable biology
Technology for sustainable biology 94
Slide 96: Technology for sustainable biology
Technology for sustainable biology 95
Slide 97: Aquaculture powered by Artificial Intelligence
Aquaculture powered by Artificial Intelligence CEO: Hemang Rishi (h.r.rishi@observe.tech) CTO: Pieter Fabry (pieterfabry@observe.tech) 96
Slide 98: Break, followed by Q&A and Closing remarks
Now: 5 minutes Break, to be followed by Q&A and Closing remarks 97
Slide 99: Appendix
Appendix Technology for sustainable biology 98
Slide 100: Scenario 1: Europe key supplier of fresh salmon
Scenario 1: Europe will be key supplier of fresh salmon to North American and Asian markets Scenario 1: Main salmon intercontinental trade flows 2030, Landbased Frozen Frozen Europe (incl. Russia) Fresh Volume in mill. tons Conventional Fresh Supply Demand North America Supply Demand +4% +2% 2.5 0.2
Slide 101: Scenario 1: Conventional pen farming to grow at full capacity
Scenario 1: Conventional pen farming to grow at full capacity to alleviate the world’s growing demand for Salmon Mill. tons +3.5% WFE 3.8 • Continued marketing effort required to sustain 2.6 1.7 demand growth AKVA AKVA Group Group implications: implications: Europe Demand NAM 1.3 0.8 • Especially im
Slide 102: Scenario 2: Asia supplied locally and from Europe
Scenario 2: Asia supplied locally and from Europe – Chile with a challenging long- term market condition Scenario 2: Main salmon intercontinental trade flows 2030, Landbased Frozen Frozen Europe (incl. Russia) Fresh Volume in mill. tons Conventional Fresh Supply Demand North America Supply Demand +4
Slide 103: Scenario 3: Lack of airborne freight
Scenario 3: Lack of airborne freight resulting in significant drop in fresh consumption in NaM and Asia Frozen Landbased Frozen Frozen/ Fresh Fresh undersupply Scenario 3: Main salmon intercontinental trade flows 2030, Europe (incl. Russia) Conventional Fresh Volume in mill. tons Supply Demand North
Slide 104: Aquaculture powered by Artificial Intelligence
Aquaculture powered by Artificial Intelligence CEO: Hemang Rishi (h.r.rishi@observe.tech) CTO: Pieter Fabry (pieterfabry@observe.tech) 103
Slide 105: Observe founded through Entrepreneur First
2017 Observe founded through Entrepreneur First First deployment on Chilean site www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 104
Slide 106: Underleveraged Data, The Art of Feeding
Underleveraged Data The Art of Feeding Unclear Feeding Strategy Cameras Fish weights Feeding O2 Sensors Reports www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 105
Slide 107: Data Available to Farmers, Artificial Intelligence
Data Available to Farmers Artificial Intelligence Maximise Stock Value Cameras Fish weights Productivity Feeding Sustainability O2 Sensors Costs Reports No extra cage equipment www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 106
Slide 108: Observe timeline 2017-2018
2017 Observe founded through Entrepreneur First First deployment on Chilean site 2018 Patents developed Commercial deployments in Chile & Scotland www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 107
Slide 109: www.observe.tech
www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 108
Slide 110: Observe timeline 2019
2017 Observe founded through Entrepreneur First First deployment on Chilean site 2018 Patents developed Commercial deployments in Chile & Scotland 2019 AKVA distributorship deal Scaled to major geographies www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 109
Slide 111: 2 Patents, 5 Observe Awards, 15+ Academic Papers
Select team members 2 Patents 5 Observe Awards 15+ Academic Papers 3 PhDs 3 Mengs www.observe.tech © 2019 Observe Technologies. Strictly Private and Confidential. 110
Slide 112: Full Suite of Products
2017 Observe founded through Full Suite of Products Entrepreneur First Recommendation Engine Cloud-Based Data Analysis First deployment on Chilean site 2018 Patents developed Commercial deployments in Chile & Scotland Automation Biomass + Land-Based 2019 AKVA distributorship deal Scaled to major geo
Slide 113: Thank you
@bserve Thank yd”)
Slide 114: AKVA group
113 AKVAcRouP