Akva Group Asa · OSL:AKVA

Akva Group Asa — Q2 2016 Earnings Presentation

32 slides from Akva Group Asa's earnings presentation, Aug 17, 2016

  1. Slide 1: Q2 2016 Presentation

    Q2 2016 Presentation Oslo - August 17th, 2016 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner

  2. Slide 2: Agenda

    Agenda 1 Highlights 2 Financial performance 3 Outlook 4 Q&A Your Aquaculture Technology and Service Partner

  3. Slide 3: Highlights Q2 2016 - by CEO Trond Williksen

    Highlights Q2 2016 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3

  4. Slide 4: Improved performance and growth continues

    Improved performance and growth continues 1 000 11,0 % Second quarter 2016 – Highlights 900 • Overall good performance - 10.4% EBITDA margin 10,3 % 10,5 % 800  Land based – strengthen P&L and high order backlog – becoming a significant part of AKVA 10,0 %  Software – continues to perform well 700

  5. Slide 5: Improved performance and growth continues

    Improved performance and growth continues Revenue +21% EBITDA +33% MNOK MNOK 402 408 41 43 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Your Aquaculture Technology and Service Partner 5

  6. Slide 6: Growth in order backlog continues

    Growth in order backlog continues Order Inflow Order Backlog +67% +54% 822 697 LBT LBT 437 MNOK MNOK 283 533 348 493 414 385 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Your Aquaculture Technology and Service Partner 6

  7. Slide 7: AKVA group – uniquely positioned for future growth

    AKVA group – uniquely positioned for future growth Leading technology solutions and service partner to the global aquaculture industry Global presence - subsidiaries in 8 countries 751 employees Market cap of NOK ~1800m and net debt of NOK 172m Your Aquaculture Technology and Service Partner

  8. Slide 8: Presence in all main farming regions

    Presence in all main farming regions Map of activities Revenue per region, Q2 2016 Export 14 % Americas 9% Nordic Nordic 77 % Americas Export Your Aquaculture Technology and Service Partner

  9. Slide 9: Strategic priority to increase the proportion of OPEX based revenue

    Strategic priority to increase the proportion of OPEX based revenue OPEX based vs CAPEX based revenue, Q2 2016 Comments • OPEX based revenue defined as our revenue booked as OPEX in our customers P&L • Aim of increasing relative share of OPEX based revenue through software OPEX based and services –

  10. Slide 10: Revenue by product groups and species

    Revenue by product groups and species By product groups – Q2 2016 By species – Q2 2016 Land based Non 23 % Seafood 9% Other Species 14 % Software Cage 8% based 69 % Salmon 77 %  Cage based technologies = Cages, barges, feed systems and other  Salmon = Revenue from technology and services sold to p

  11. Slide 11: AKVA Marine Services AS – our new Farming Services vehicle

    AKVA Marine Services AS – our new Farming Services vehicle • The merger of our farming services entities (YesMaritime AS, Rogaland Sjøtjenester AS and AD Offshore AS) was completed in June 2016 • AKVA group ASA owns 65% of AKVA Marine Services AS • The acquisition process with Techno Dive announced

  12. Slide 12: Atlantis Subsea Farming AS

    Atlantis Subsea Farming AS • ATLANTIS is in dialogue with the Directorate of Fisheries and we are waiting for a final decision The project • Established in partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS – 33.3% of the shares each on February 1st, 2016 • Purpose of developing

  13. Slide 13: Announcement of Interim Dividend – 0.75 NOK per share

    Announcement of Interim Dividend – 0.75 NOK per share • Dividend to be paid out in Q3 2016 is 0.75 NOK per share. AKVA group ASAs’ current dividend policy: • Total dividend pay out will be 19.4 MNOK The Company’s main objective is to maximize the return on the investment made by its shareholders Div

  14. Slide 14: Financial performance Q2 2016 – by CFO Eirik Børve Monsen

    Financial performance Q2 2016 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 14

  15. Slide 15: Q2 2016 - Financial highlights

    Q2 2016 - Financial highlights • AKVA group’s diversified operations stabilize revenue and margins – makes the Group more robust CBT (Revenue & EBITDA %) SW (Revenue & EBITDA %) LBT (Revenue & EBITDA %) • 350 12% 35 120 19% Stabilizing on a higher EBITDA margin - 10.4% in Q2 10,4 % 32 315 10,3 % 31

  16. Slide 16: Q2 2016 - Financial highlights, continued

    Q2 2016 - Financial highlights, continued EBITDA EBITDA % MNOK 45 14% 40 12% 35 30 2013 10% 2013 25 2014 8% 2014 20 6% 2015 2015 15 2016 4% 2016 10 5 2% - 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Stabilizing on a historical higher EBITDA-level both in NOK and in % The medium term target of 10% EBITDA on a annual

  17. Slide 17: Cage Based Technologies

    Cage Based Technologies Nordic ● Good performance in Q2 CBT (Revenue & EBITDA %) 350 12% ● A wide range of products continue to contribute financially – 10,4 % AKVAsmart products, Barges, Polarcirkel cages, service and rental 315 10,3 % 300 Americas ● Reduced activity in Americas this quarter - MNOK

  18. Slide 18: Software

    Software SW (Revenue & EBITDA %) 35 19% 31 32 1 1 30 3 17% ● Another good quarter 6 16,9 % 25 15,4 % 15% ● AKVA group Software AS – improved performance YoY 20 ● Wise lausnir ehf – with improved performance YoY 13% 15 28 ● WiseBlue – Norwegian subsidiary of Wise lausnir ehf – small but profitable 24

  19. Slide 19: Land Based Technologies

    Land Based Technologies LBT (Revenue & EBITDA %) 120 96 100 ● Significantly improved financial performance YoY 1 80 10%  Plastsveis AS with a good first half of 2016 8,7 %  Aquatec Solutions A/S – with a good first half of 2016 55 60 2 6,1 %  AKVA group Denmark A/S with a decent first half of 201

  20. Slide 20: Financials – Detailed P & L

    Financials – Detailed P & L P&L 2016 2015 2016 2015 2015 • Increased depreciation mainly (MNOK) Q2 Q2 YTD YTD Total due to increased rental CAPEX OPERATING REVENUES 408,2 401,5 800,7 726,5 1 425,3 and amortization Operating costs ex depreciations 365,6 360,7 718,5 659,1 1 290,2 EBITDA 42,6 40,9 82,2

  21. Slide 21: Group financial profile – remains strong

    Group financial profile – remains strong Available cash Working capital +46 MNOK +36 MNOK / +3.1 percentage points MNOK 160 14 % MNOK 12,4 % 140 12 % 10,6 % 120 10 % 100 7,5 % 8% MNOK MNOK 226 230 80 203 145 6% 183 60 129 4,3 % 147 157 160 109 144 144 4% 40 64 20 2% 0 0% 2Q14 3Q14 4Q14 1Q15 2Q15 3Q1

  22. Slide 22: Group financial profile – remains strong, continued

    Group financial profile – remains strong, continued ROCE Equity +43 MNOK 500 50% 17,8 % 450 45,8 % 41,5 % 45% +5.6 percentage points 38,9 % 15,2 % 15,2 % 14,7 % 400 40% 14,1 % 13,9 % 14,0 % 350 35% 12,3 % 300 30% MNOK 250 25% 8,3 % 200 20% 150 15% 100 10% 50 365 375 389 403 417 443 428 435 460 5% 0

  23. Slide 23: Net debt/EBITDA of 0.5x

    Net debt/EBITDA of 0.5x Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 210 2,0 Net debt 31.03.2016 70 512 180 172 EBITDA -42 612 Income taxes paid 3 161 150 1,3 136 Net interest paid 1 970 120 1,0 1,1 Capex paid 17 067 92 0,9 98 1,0 89 0,8 82 Acquisitions / Divestments 87 674 90 76 0,

  24. Slide 24: Balance sheet

    Balance sheet BALANCE SHEET 2016 2015 (MNOK) 30.06 30.06 ASSETS 1 180 1 007 Intangible non-current assets 417 266 Tangible non-current assets 127 83 Financial non-current assets 5 2 Inventory 166 203 Receivables 313 385 Cash and cash equivalents 152 67 LIABILITIES AND EQUITY 1 180 1 007 Equity 450 4

  25. Slide 25: CAPEX

    CAPEX Capex (TNOK) and capex / sales (%) CAPEX breakdown 2016 YTD (TNOK) 35 000 32 853 20% 9 528 18% 30 000 16% 25 000 23 114 14% 10 104 18 633 12% 20 000 20 548 10% 17 067 16 037 15 871 10% 15 000 8% 11 017 6% 10 994 6% 9 133 4% 6% 10 000 4% 4% 3% 3% 3% 4% 5 000 2% Ordinary Rental Intangible (R&D)

  26. Slide 26: Dividend in AKVA group ASA

    Dividend in AKVA group ASA AKVA group ASAs’ current dividend policy: • Step one: NIBD/equity - ratio = 0.38 The Company’s main objective is to maximize the • Step two: good underlying performance gives good operational cash flow in 1H return on the investment made by its shareholders through both in

  27. 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 Share price 3 900 000 15,1 % WHEATSHEAF INVESTMEN GBR Trading volume 969 049 3,8 % VERDIPAPIRFONDET ALF NOR EIKA NORGE NOR 80 70 000 000

  28. Slide 28: Outlook – by CEO Trond Williksen

    Outlook – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 28

  29. Slide 29: Order backlog and inflow

    Order backlog and inflow Order backlog Order inflow MNOK 900 MNOK 800 600 LBT 700 437 500 LBT 600 283 400 2013 500 300 2014 400 300 2015 200 200 414 385 2016 100 100 0 - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q  Highest order backlog ever  53% of total order backlog relates to Land based technology (LBT)  The str

  30. Slide 30: Positive outlook

    Positive outlook ● Good mid term outlook due to high market activity and large order backlog ● Good demand in the Nordic cage based segment continues, with a shift towards sale of technology for more efficient production ● Land based segment with growing activity - is expected to continue and is bec

  31. Slide 31: Q&A

    Q&A Your Aquaculture Technology and Service Partner 31

  32. Slide 32: Your Aquaculture Technology and Service Partner

    Your Aquaculture Technology and Service Partner

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