Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2019 Earnings Presentation
39 slides from Akva Group Asa's earnings presentation, Aug 14, 2019
Slide 1: Q2 2019 Presentation
Q2 2019 Presentation Oslo – 14 August 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q2 2019 – by CEO Hallvard Muri
Highlights Q2 2019 – by CEO Hallvard Muri
Slide 4: Strong financial performance
Strong financial performance Order intake • Order intake of 760 MNOK +61% 1 107 • Strong contributions from all segment and regions in the quarter 997 44 46 300 • Significant land based tender won with Russian Sea of 11.9 MEUR, 218 expected signing in Q3/Q4, not yet included in order backlog 639 760
Slide 5: High activity in all regions
High activity in all regions Revenue • 27% increase in revenue compared to Q2 2018 +27% • Egersund Net group of companies included from September 1st 2018 • Americas another positive quarter with revenue of 136 MNOK, up from 125 MNOK in Q2 2018 852 798 726 • Positive order intake development in Nord
Slide 6: EBITDA development
EBITDA development • EBITDA of 101 MNOK in the quarter, including 15 MNOK in effect EBITDA of reclassification due to IFRS 16 (leases) +94% • Americas continued positive development with an EBITDA of 12 101 97 MNOK compared to 10 MNOK in Q2 2018, driven first and foremost 7 7 by improved margins 8 8
Slide 7: Continued strong order backlog
Continued strong order backlog Order backlog • Second quarter 2019 – Highlights – Order backlog at end of June of 1.6 BNOK +23% 1 611 1 572 – Signed another barge to Russian Sea in June of 37 MNOK 1 380 1 381 1 430 1 356 – Awarded Land Based agreement with Russian Sea of 11.9 MEUR, 1 274 629 611 479
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +106% +140% +80% 0,23 0,30 0,19 1 650 198 0,12 1,80 1,74 1,67 1 216 1 047 119 111 801 1,01 82 Q2 16 Q2 17 Q2 18 Q2 19 Q2 16 Q2 17 Q2 18 Q2 19 Q2 16 Q2 17 Q2 18 Q2 19 YTD YTD YTD Amortization from intangible assets related to acquisitions In August 2018, numbe
Slide 9: Our presence
Our presence AKVA group Agents and distributors
Slide 10: Revenue in geographical regions
Revenue in geographical regions AKVA group’s geographical regions – absolute and relative 852 798 726 627 637 589 557 63% 66% 61% 69% 68% 70% 484 633 74% 76% 603 506 412 392 372 379 334 19% 22% 20% 113 139 20% 23% 125 177 145 24% 17% 17% 128 136 98 18% 14% 17% 105 90 106 74 11% 9% 9% 7% 52 49 42 59
Slide 11: Development in OPEX based revenue
Development in OPEX based revenue 300 33,8% 35 • Egersund Net contributing 112 MNOK in the quarter 32,3% 29,0% 234 257 28,2% 245 27,5% 30 250 26,1% • Stable development for the rental business (Scotland and 25 Norway) in 2019 200 22,1% 22,5% 94 112 90 20 150 31 • Service in ASA Nordic with higher re
Slide 12: Revenue by product group and species
Revenue by product group and species By product groups – Q2 2019 By species – Q2 2019 852 852 44 1 798 56 798 726 39 0 726 23 66 118 13 44 1 95 74 627 637 627 637 589 42 1 40 1 129 589 47 42 557 189 557 55 47 1 218 52 46 51 Software 484 46 0 116 124 484 54 34 38 0 124 108 Non seafood 46 32 LBT S&AS
Slide 13: Q2 – Operational Highlights
Q2 – Operational Highlights • Improved and stable operations at pipe manufacturing • Continued strong pipeline of land based projects, co-operation agreement signed with Cooke in August • Continued good demand in Chile and stable margins as a result of improvement programs • Strong performance in th
Slide 14: Risk management Submerge and raise the cage – safe and remote Underwater feeding
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 15: Financial performance Q2 2019 – by CFO Simon Nyquist Martinsen
Financial performance Q2 2019 – by CFO Simon Nyquist Martinsen
Slide 16: Q2 2019 – Financial highlights
Q2 2019 – Financial highlights Revenue • Last twelve months order intake and revenue now at 852 798 3,312 MNOK and 3,013 MNOK respectively 726 627 637 • The order book has decreased to 1,572 MNOK at the end of 589 557 537 Q2 2019 510 484 449 393 408 • Strong growth in the Nordic region, decline in E
Slide 17: Q2 2019 – Financial highlights
Q2 2019 – Financial highlights • As in Q1, strong contributions from Americas, inclusion of Egersund EBITDA (MNOK) 150 Net when comparing to the same quarter last year 97 101 100 • Strong improvements and contribution in the quarter from net 65 61 71 60 57 washing in sea and sales of ROV and FNC (ne
Slide 18: Cage Based Technology
Cage Based Technology Nordic Revenue and EBITDA % • Improved margins in the Norwegian barge business 800 14 12,8% compared to H2 2018 and Q1 2019, but still fierce competition and operational improvement potential 700 664 12 58 • Stable operations at Helgeland Plast 600 10 124 • Strong improvement i
Slide 19: Cage Based Technology
Cage Based Technology Americas Revenue and EBITDA % • Both order intake and revenue is up compared to last 800 14 12,8% years Q2 700 664 12 • EBITDA margins also improved compared to last years Q2 58 and to 2018 total 600 10 124 • Americas region has grown in EBITDA by 109 % compared 500 467 to YTD
Slide 20: Land Based Technology
Land Based Technology Revenue and EBITDA % • A tender with Russian Sea of 11,9 MEUR was won in 117 Q2, final contract expected to be signed late Q3 or 120 14 early Q4, this project is not included in the order 2 0 110 12,2% 12 backlog 100 95 10,5% 1 • Co-operation agreement signed with Cooke 90 8 10
Slide 21: Software
Software • Digital solutions in Software integrated with control Revenue and EBITDA % systems and AI solutions create stronger combined 45 42 20 offerings 1 39 40 4 1 • First version of modernized Fishtalk delivered, with 35 4 open, cloud based API and new modern app’s 30 • Brand new control system,
Slide 22: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2019 2018 2019 2018 2018 Q2 Q2 YTD YTD Total Order backlog 1 572 1 274 1 572 1 274 1 356 Order intake 760 471 1 867 1 110 2 555 • Of which Land Based is 611 MNOK P&L OPERATING REVENUES 798 627 1 650 1 216 2 579 IFRS 16 OPEX* -15 - -29 - - • Investment in subsidiaries
Slide 23: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 500 485 18 400 379 14 15,8% 16,1% 12,6% 450 16 350 304 12 400 382 13,8% 10,7% 356 14 10,2% 300 350 292 9,0% 262 10 12 300 10,3% 250 217 8 10 6,7% 250 8,2% 200 469 8 152 6 418 422 200 186 150 336 6 307 150
Slide 24: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown 2019 90 000 14,2% 15 Rental 80 000 8 547 70 000 Intangible 60 000 10 20 678 50 000 6,8% 5,8% 40 000 5,9% 78 936 30 000 4,0% 4,3% 4,2% 5 42 852 2,6% 42 225 3,0% 20 000 35 556 31 666 10 000 25 517 23 913 30 244 19 495 16 881 0 0 Ordinary 2Q 2017 3Q
Slide 25: Net interest bearing debt/EBITDA of 2.2
Net interest bearing debt/EBITDA of 2.2 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 800 3,15 Net interest bearing debt 31.03.2019 531 071 726 EBITDA -100 618 700 2,80 632 2,6 2,5 Income taxes paid 15 639 605 600 2,2 2,45 Net interest paid 10 384 53
Slide 26: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 1 100 1 063 1 055 1 068 50 0,8 1 017 0,74 1 000 0,71 0,68 0,7 900 38,2% 39,3% 38,4% 37,8% 0,63 0,63 0,62 40 0,58 800 0,57 0,6 31,4% 30,1% 0,49 700 29,4% 28,0% 0,5 26,8% 30 600 473 476 500 491 504 0,4
Slide 27: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 15,4% 16,4% 16,9% 16,8% 13,4% 13,7% 14,0% 14,5% 11,1% 12,5% 11,9% 7,9% 7,9% 8,4% 9,1% 8,6% 8,9% 7,0% 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 Including ten months of EBIT from Egersund N
Slide 28: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2019 2018 2019 2018 2018 (NOK 1 000) Q2 Q2 YTD YTD Total Net cash flow from operations 74 090 43 846 153 039 90 510 204 735 Net cash flow from change in w orking capital -189 702 -59 554 -132 556 -13 959 -50 821 Net cash flow from ope
Slide 29: Balance sheet
Balance sheet BALANCE SHEET 2019 2018 2018 (MNOK) 30.06 30.06 31.12 ASSETS 3 260 1 881 2 703 Intangible non-current assets 1 080 574 1 085 Tangible non-current assets 324 267 332 Financial non-current assets 68 8 73 IFRS 16 - RoU Asset 430 - - Inventory 434 257 462 Receivables 719 597 571 Cash and c
Slide 30: Dividend and dividend policy
Dividend and dividend policy Dividend Policy Cash Dividend • The company is aiming to give the shareholders a competitive return on investment by a combination of cash dividend and share price increase • The company’s dividend policy shall be stable and predictable • When deciding the dividend the B
Slide 31: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 20 703 105 62,1 % EGERSUND GROUP AS WHEATSHEAF INVESTMENTS LIMITED NOR GBP Last 12 months 3 900 000 11,7 % Share price Trading volume 993 242 3,0 % SIX SIS AG Nomi nee CHE VERDIPAPIRFONDET ALF
Slide 32: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 33: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 12 and service exchange countries countries. partner since 2006 over 40 1 527 years employees
Slide 34: Solutions
Solutions Cage Based Technology Land Based Technology Software
Slide 35: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 36: Order backlog and inflow, 2016 through 2019
Order backlog and inflow, 2016 through 2019 Order backlog Order intake 1 611 1 572 1 106 1 430 997 1 380 1 381 1 356 1 318 1 274 300 629 611 218 778 1 077 479 1 085 760 629 998 537 448 620 449 886 639 77 589 51 561 557 430 822 359 533 304 546 697 412 103 471 448 72 33 417 441 417 92 437 806 250 87 3
Slide 37: Outlook – AKVA group
Outlook – AKVA group • Digitalization strategy being firmed up, contracts in pipeline for Intelligent Feeding • Competitive position strengthened by new cage concept and waterborne feeding, to be launched Q3/Q4 • Strong position for net sales and net services, growth potential by increasing manufact
Slide 38: CUSTOMER FOCUS
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 39: AKVAcRour
AKVAcRour