Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2018 Earnings Presentation
39 slides from Akva Group Asa's earnings presentation, Feb 15, 2019
Slide 1: Q4 2018 Presentation
Q4 2018 Presentation Oslo – February 15th 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q4 2018 – by CEO Hallvard Muri
Highlights Q4 2018 – by CEO Hallvard Muri
Slide 4: Record high order intake – 1 billion NOK
Record high order intake – 1 billion NOK Order intake • Both including and excluding the effect of the acquisition of +79% Egersund Net (198 MNOK), the 1 billion NOK order intake in 997 the quarter is the best ever 46 SW • Significant order intake in the Cage Based segment in Q4 2018, 778 218 LBT dr
Slide 5: Revenue up 30% - driven by acquisition of Egersund Net
Revenue up 30% - driven by acquisition of Egersund Net Revenue • 3 % organic increase in revenue compared to Q4 2017, +30% 30 % increase including Egersund Net 726 152 • Americas has another strong quarter with a revenue of 55 177 MNOK compared to 127 MNOK in Q4 2017 • Revenue for the Land Based seg
Slide 6: EBITDA development
EBITDA development EBITDA • EBITDA of 57 MNOK in the quarter, including 25 MNOK from Egersund Net -6% • Americas with another strong quarter with an EBITDA of 19 10 MNOK, compared to 10 MNOK in Q4 2017 1 57 8 • Weak quarter in the Nordic CBT area, with operational challenges 25 for both Helgeland Pl
Slide 7: Order backlog development / highlights
Order backlog development / highlights Order backlog • Fourth quarter 2018 – Highlights – Strong finish of the year; order backlog end of Dec of 1.4 BNOK +25% 1 430 – 1 billion NOK in order intake in Q4 1 318 1 380 1 381 1 356 1 274 – Strong performance from Egersund Net 479 1 077 537 1 085 448 629
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +81% +76% +44% 2 579 240 238 3,86 2 088 3,17 1 603 144 2,20 1 425 135 1,06 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 In August 2018, number of shares increased from 25 834 303 to 33 334 303. When Not adjusted for acquisition costs (9 MNOK) r
Slide 9: Where do we deliver
Where do we deliver AKVA group’s geographical regions Income distribution Q4 2018 25%(23%) 14%(19%) 61%(58%) Nordic Americas Export Nordic AKVA group EME Agents and Distributors Americas
Slide 10: Development in OPEX based revenue
Development in OPEX based revenue 33,8% • Egersund Net is contributing with 94 MNOK in the quarter 250 35 29,0% 28,2% 27,1% 30 • Stable development for the rental business (Scotland and 200 26,1% 94 Norway) in 2018 and several good opportunities for growth in 180 23,4% 25 Norway 22,1% 22,5% 31 150 2
Slide 11: Revenue by product group and species
Revenue by product group and species By product groups – Q4 2018 By species – Q4 2018 726 726 44 1 74 627 637 589 627 637 589 557 34 42 557 42 1 40 0 129 510 32 55 47 537 47 537 52 46 51 Software 510 1 116 46 124 30 484 54 41 1 484 0 Non seafood 52 54 41 1 108 28 46 LBT S&AS 38 0 124 201 84 112 98 O
Slide 12: Q4 – Operational Highlights
Q4 – Operational Highlights • Continued strong marked in Chile and increasing margins following improvement programs • Secured new larger Land Based orders in Norway and Chile • Increased focus within Software / control systems / digitalization • Building presence in eastern Canada • Ongoing manufac
Slide 13: 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 14: Financial performance Q4 2018 – by CFO Simon Nyquist Martinsen
Financial performance Q4 2018 – by CFO Simon Nyquist Martinsen
Slide 15: Q4 2018 – Financial highlights
Q4 2018 – Financial highlights Revenue • 3% organic growth and 27% M&A growth due to the 726 acquisition of Egersund Net when comparing to Q4 2017 627 637 589 557 537 • Egersund Net is contributing with 152 MNOK in the quarter 510 484 449 393 402 408 • Last twelve months order intake and revenue now
Slide 16: Q4 2018 – Financial highlights
Q4 2018 – Financial highlights EBITDA (MNOK) 80 71 • Strong contribution from Egersund Net (25 MNOK) in 59 65 61 60 57 60 54 52 the quarter as well as record high margins in Chile 40 41 43 41 38 40 27 27 24 20 • Operational challenges in manufacturing (partly 0 suppliers) causing poorer margins in c
Slide 17: Proforma Revenue and EBITDA – including Egersund Net
Proforma Revenue and EBITDA – including Egersund Net Revenue EBITDA 3 042 310 9 463 2 579 63 207 238 34 789 1 584 48 155 AKVA AKVA Egersund AKVA Egersund 2018 - Full AKVA AKVA Egersund AKVA Egersund Transaction 2018 - Full YTD Aug Sept - Dec Net Sep - group 2018 Net Jan - Year Inc. YTD Aug Sept - De
Slide 18: Cage Based Technology
Cage Based Technology Nordic • Norwegian barge business with low margins in the Revenue and EBITDA % quarter due to unexpected and ongoing manufacturing 600 14 553 challenges 41 12 • Low season for deliveries of plastic cages at Helgeland 500 Plast, though increased activity in pipe production 152 1
Slide 19: Cage Based Technology
Cage Based Technology Americas • Americas is significant up and has a growth in the Revenue and EBITDA % revenue of 26% compared to the same quarter last year, 600 14 553 on top of a strong order backlog of 151 MNOK at the end of the quarter 41 12 500 • The operation in Chile has a growth in EBITDA
Slide 20: Land Based Technology
Land Based Technology Revenue and EBITDA % • Major land based contract signed with Ænes 130 130 124 1 14 Inkubator AS of 15.6 MEUR and also 3.0 MEUR in AKVA group Chile 120 6 0 21 12 110 • Pipeline of projects continue to be good 10,8% 10,4% 100 10 90 • Increase in revenue from 124 MNOK in Q4 2017 8
Slide 21: Software
Software Revenue and EBITDA % • Software continues to invest in new 50 46 30 product modules, which is expected to 1 44 45 strengthen the financial performance of 4 1 40 4 the segment further 21,5% 35 21,4% 20 • Increased focus on modernization and 30 upgrades of technical platform 25 • As noted in
Slide 22: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2018 2017 2018 2017 2017 • Of which Land Based is 448 MNOK Q4 Q4 YTD YTD Total Order backlog 1 356 1 381 1 356 1 381 1 381 • Investment in subsidiaries accounted for Order intake 997 557 2 555 2 471 2 471 by equity method YTD Q4 classified as P&L other operating reve
Slide 23: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 382 15,8% 262 400 356 16 300 10,2% 11 13,8% 10 350 14 9,0% 250 9 300 12 217 8 200 6,5% 6,3% 6,7% 250 186 10 7 8,4% 8,2% 5,5% 152 6 200 127 8 150 5,0% 135 137 462 6,8% 6,7% 175 5,7% 5 420 418 6,2% 5,8% 5,3
Slide 24: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown 2018 90 000 14,2% 15 Rental 80 000 Intangible 10 243 70 000 11,2% 31 950 60 000 10 50 000 6,8% 40 000 5,5% 5,9% 78 936 5,8% 30 000 57 368 4,0% 4,3% 5 20 000 42 852 2,6% 42 225 31 666 10 000 24 728 25 517 19 495 16 881 85 282 0 0 Ordinary 4Q 2016 1
Slide 25: Net interest bearing debt/EBITDA of 2.5
Net interest bearing debt/EBITDA of 2.5 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 700 3,15 Net interest bearing debt 30.09.2018 632 261 632 EBITDA -56 522 605 600 2,6 2,80 2,5 Income taxes paid 5 098 2,45 Net interest paid 4 091 500 2,0 2,10 Cape
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 50 0,8 1 017 0,74 1 000 0,70 0,71 0,7 900 38,2% 39,3% 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 31,6% 31,3% 473 476 500 491 504 0,4 500 435 446
Slide 27: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 14,6% 13,0% 11,3% 4,4% 9,9% 3,8% 3,4% 2,9% 15,4% 16,4% 14,3% 16,5% 17,0% 13,4% 14,6% 14,7% 12,7% 11,1% 11,4% 10,9% 9,8% 9,6% 10,2% 9,2% 7,9% 7,0% 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
Slide 28: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2018 2017 2018 2017 2017 (NOK 1 000) Q4 Q4 YTD YTD Total Net cash flow from operations 48 978 36 153 204 735 195 535 195 535 Net cash flow from change in w orking capital 19 077 -42 574 -50 436 -108 130 -108 130 Net cash flow from ope
Slide 29: Balance sheet
Balance sheet BALANCE SHEET 2018 2017 (MNOK) 31.12 31.12 ASSETS 2 703 1 663 Intangible non-current assets 1 085 587 Tangible non-current assets 332 245 Financial non-current assets 73 6 Inventory 462 238 Receivables 571 447 Cash and cash equivalents 133 99 Assets held for sale 47 40 LIABILITIES AND
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 GBR Last 12 months 3 900 000 11,7 % Share price Trading volume 828 930 2,5 % VERDIPAPIRFONDET ALFRED BERG GAMBA NOR 803 2
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 1 513 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, 2015 through 2018
Order backlog and inflow, 2015 through 2018 Order backlog Order intake 1 430 997 1 380 1 381 1 356 1 318 1 274 218 1 077 479 1 085 448 778 629 998 537 620 449 639 886 589 51 430 822 359 304 561 557 533 546 697 412 103 471 504 72 33 649 448 643 417 441 417 92 547 368 87 34 283 494 437 101 348 250 214
Slide 37: Outlook – AKVA group
Outlook – AKVA group • Developing digitalization strategy, upgrading software platform and control systems. Management resources strengthened • New product development well under way; cage system, and feeding • Egersund Net integration developing well – cages, nets and mooring (total) solutions sold
Slide 38: Customer Focus
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 39: AKVA group
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