Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2021 Earnings Presentation
40 slides from Akva Group Asa's earnings presentation, May 7, 2021
Slide 1: Q1 2021 Presentation
Q1 2021 Presentation Klepp, 7 May 2021 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Technology for sustainable biology
Technology for sustainable biology
Slide 3: Agenda Q1 2021
Agenda|Q1 2021 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 4: Highlights Q1 2021
Highlights|Q1 2021 Operation Innovation and Digital • Activity level reduced by 4% in Q1 compared to Q1 20 • High focus on developing our capabilities within Land Based technology and advisory services • EBIT impacted significantly by 49,7 MNOK in non-recurring costs related to the cyber-attack • St
Slide 5: Key figures Q1 2021
Key figures|Q1 2021 Revenue EBITDA excluding cyber-attack costs* EBIT excluding cyber-attack costs* 719 MNOK 83 MNOK 36 MNOK 97 852 86 49 83 752 719 37 38 36 589 59 34 510 54 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 * Note: Costs of 49,7 MNOK related
Slide 6: Market development
Market development 6 Source: Pareto Seafood Price Update 06.05.2021 Technology for sustainable biology
Slide 7: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) +10% 994 1 009 1 881 1 783 1 813 21 26 56 1 650 49 1 625 55 235 45 49 709 385 10 13 647 651 605 771 975 929 16 14 747 72 69 686 738 559 599 569 Digital solutions 1 000 Digital solutions 963 850 828 829 Land Based Lan
Slide 8: COVID-19 Negative impact on operations
COVID-19|Negative impact on operations • Negative implications are mainly related to travel restrictions and use of foreign workforce in ongoing operations • Cage Based – Service stations • Difficult to replace foreign labor with local labor • Influences both topline and cost level – Supply chain re
Slide 9: Cyber-attack Significant non-recurring costs
Cyber-attack|Significant non-recurring costs • On Sunday 10 January AKVA group fell victim to a cyber extortion attack from a group of criminal hackers – All main IT systems are now restored in a safe environment – Various support systems still in the process of being restored • Significant non-recu
Slide 10: Strategy for Land Based Salmon Farming
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 insight and intelli
Slide 11: 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 Organi
Slide 12: Agenda Q1 2021
Agenda|Q1 2021 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 13: Q1 2021 – Income statement
Q1 2021 – Income statement 2021 2020 2020 NOK million Q1 Q1 Total • Adjusted for the impact related to the cyber-attack and Revenue 719 752 3 177 EBITDA 33 86 338 COVID-19 the financial performance in Q1 was acceptable EBITDA margin 4,6 % 11,4 % 10,6 % 1 EBITDA ex. cyber-attack costs 83 86 338 1 • A
Slide 14: Non-recurring cyber-attack costs
Non-recurring cyber-attack costs Direct costs: MNOK 40,7 • All related to third party costs Consequential operational costs: MNOK 9,0 • Cage Based: MNOK 2,2 (unproductive time Chile and Norway) • Land Based: MNOK 3,7 (unproductive time Chile and Denmark) • Digital Solutions: MNOK 3,1 (reduced revenu
Slide 15: Revenue development
Revenue development • Last twelve months order intake and revenue of MNOK Revenue (MNOK) 3 307 and MNOK 3 144, respectively -4% 862 806 • Revenue reduced by 4% compared to Q1 20 752 757 719 • Increased activity in Land Based business but reduced revenue in both Cage Based and Digital Solutions compa
Slide 16: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 862 862 16 806 5 806 70 16 757 752 752 104 7 770 17 20 719 96 7 98 14 719 79 14 121 11 157 115 154 180 112 193 143 84 149 775 657 694 580 590 573 508 492 512 AustralAsia 443 Europe & Middle East Digital Solutions Ameri
Slide 17: EBITDA and EBIT development
EBITDA and EBIT development • Profitability, adjusted for cyber-attack costs, EBITDA excluding cyber-attack costs* EBIT excluding cyber-attack costs* at the same level as in Q1 20 120,0 13,1% 14,0 120,0 7,2% 7,5 110,0 13,0 110,0 7,0 • Significantly improved compared to Q4 20 11,4% 11,5% 12,0 6,5 100
Slide 18: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA* 600 3,15 600 16 1 600 3,4 3,50 562 3,3 3,2 15,0% 516 525 2,80 3,0 3,15 14 1 400 2,9 500 469 500 2,45 447 1 202 2,80 409 12 1 200 1 130 10,3% 1 080 1 081 2,45 400 2,10 400 1 021 10 1 000 423 2,10 1,75 9,0% 316 8,2%
Slide 19: Development return on capital employed
Development return on capital employed ROACE* (%) • ROACE marginally reduced from 7,6% in Q4 20 to 15 7,4% in Q1 21 • Target of minimum 15% in 2023 remains unchanged 10 15,0% 5 7,6% 7,4% 2,7% 2,2% 1,8% 0 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 2023 target ▪ ROACE is calculated with the average balance sheet i
Slide 20: Dividend
Dividend • A dividend of NOK 1,00 per share was paid on 14 April 2021 Cash dividend (NOK per share) 1,75 1,50 1,25 1,00 1,00 0,75 2016 2017 2018 2019 2020 Q2 2021 20 Technology for sustainable biology
Slide 21: Business segments
XO Business segments
Slide 22: Cage Based Technology
Cage Based Technology • Order intake and revenue reduced by respectively 17% and 10% Revenue (MNOK) and EBITDA-margin* (%) in Q1 21 compared to Q1 20 800 12,3% 13 11,7% 12 Nordic 700 • Revenue increase of 2% in Q1 compared to Q1 20 657 11 • Total order intake of MNOK 358 and 31% decline compared to
Slide 23: Development OPEX based revenue
Development OPEX based revenue • Reduced share of recurring revenue in Q1 21 is mainly Revenue (MNOK) related to lower activity at service stations due to COVID- 300 40 37,6% 19 restrictions 34,6% 33,6% 32,9% 35 250 31,9% • The positive trend from 2020 is expected to continue 30 when the travel rest
Slide 24: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin* (%) • Order intake of MNOK 69 in the quarter compared to MNOK 10 in Q1 2020 120 115 14 2 0 110 • Revenue increased by 46% in Q1 21 compared to Q1 20 12 100 10 • EBITDA of MNOK 9.4 in Q1 21 compared to MNOK 2.9 in Q1 20, 90 79 and MNOK 7.9 in Q4
Slide 25: Digital Solutions
Digital Solutions Revenue (MNOK) and EBITDA-margin* (%) • Positive trend continues with high EBITDA margin of 34% in Q1 20 compared to 13.1% in Q1 20 40 34,0% 35 35 30 • High focus to further develop our digital capabilities and increase activity level 30 25 25 20 20 13,1% 17 15 EBITDA % 1 14 15 Eur
Slide 26: Outlook
XY Outlook
Slide 27: Outlook
Outlook • Order backlog is sound and forms a good foundation for our organic growth strategy • In the short term, the company expects the negative impact from the COVID-19 implications to continue • Long term fundamentals remain however unchanged as presented in our Capital Markets Day in November 2
Slide 28: Agenda Q1 2021
Agenda|Q1 2021 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 29: 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 30: Appendix
Appendix
Slide 31: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 10 and service exchange countries countries. partner since 2006 over 40 1 489 years employees
Slide 32: Our presence
Our presence AKVA group 32 Technology for sustainable biology
Slide 33: Solutions
Solutions Cage Based Technology Land Based Technology Digital Solutions 33 Technology for sustainable biology
Slide 34: Revenue by species
Revenue by species Revenue by Species (MNOK) 862 56 806 752 23 757 62 41 719 39 24 32 43 20 36 744 741 682 690 664 Non seafood Other species Salmon Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 34 Technology for sustainable biology
Slide 35: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 2021 2020 2020 (NOK 1 000) 31.3. 31.3. 31.12. Intangible fixed assets 1 033 874 1 071 662 1 043 350 Deferred tax assets 3 078 22 346 10 872 Fixed assets 736 389 787 564 749 124 Long-term financial assets 179 240 84 603 148 437 FIXE
Slide 36: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2021 2020 2021 2020 2020 (NOK 1 000) Q1 Q1 YTD YTD Total Cash flow from operations ex. w orking capital items -1 192 86 583 -1 192 86 583 283 227 Cash flow from change in w orking capital 3 399 -157 218 3 399 -157 218 21 744 Net cash
Slide 37: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 20 703 105 62,1 % EGERSUND GROUP AS NOR Last 12 months 1 620 685 4,9 % PARETO AKSJE Norway VERDIPAPIRFOND NOR Share price Trading volume 1 037 411 3,1 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 120
Slide 38: Dividend policy
Dividend policy • 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 Board will take into consideration expected
Slide 39: Customer focus
CUSTOMER FOCUS AQUACULTURE 3 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 40: AKVA group
AKVAcRouP