Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2007 Earnings Presentation
22 slides from Akva Group Asa's earnings presentation, Feb 26, 2008
Slide 1: 4Q 2007 presentation
The global leader in aquaculture technology 4Q 2007 presentation 26 February 2007 Knut Molaug, CEO Rolf Andersen, CFO Pro-forma ● Please note that unless otherwise stated all comments in this presentation are based on pro-forma numbers as if the merger between AKVAsmart, Helgeland Plast and the Wave
Slide 2: Agenda; AKVA group in brief
Agenda Background & highlights 4Q 2007 Financial review Outlook Strategic Review Q&A 3 AKVA group in brief Software systems Cage systems AKVA group facts and services • The leading aquaculture technology supplier • The only player with global presence • The largest supplier to the aquaculture indust
Slide 3: 4Q highlights
4Q highlights ● Operating revenue in 4Q was 237 MNOK and the period’s EBITDA was 27.9 MNOK. Total revenue for 2007 was 932 MNOK and the EBITDA was 90.7 MNOK. ● The order backlog was 381 MNOK, highest quarterly ever, at the end of 4Q, an increase of 59% compared to same time last year. ● Net profit o
Slide 4: 4Q Financials – P&L
Background & highlights 4Q 2007 Financial review Outlook Strategic Review Q&A 7 4Q Financials – P&L P&L 2007 (Pro-forma) 4Q 4Q Year Year (MNOK) 2007 2006 2007 2006 Operating revenues 236.6 196.3 932.0 703.8 Operating costs excl. depreciation -208.7 -176.0 -841.3 -616.4 EBITDA 27.9 20.3 90.7 87.4 Dep
Slide 5: P&L comments; Business areas - OPTECH
4Q Financials – P&L comments ● The demand for AKVA groups products continued to be strong in 4Q – the revenues increased by 21% compared to 4Q 2006. ● The EBITDA increased by 38% compared to 4Q 2006. ● The EBITDA result in 4Q was positively affected by approximately 9.9 MNOK due to several one- off
Slide 6: Business areas - INTECH
Business areas - INTECH INTECH (MNOK) Pro-forma 150 118 135 130 135 Revenues 103 86 80 100 63 50 2006 0 2007 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 20 14,5 11,7 10,6 11,3 9,5 17,6 10 6,1 6,7 EBITDA 0 ● 4Q revenues were up 31% compared to 4Q 2006 ● EBITDA margin of 13,0% versus 9,2% to 4Q 2006. ● EBITDA positively
Slide 7: Market segments; Balance sheet
Market segments Geographic segments •Norway and Chile – Iceland 6% Other 6% Norway dominating segments 48 % Medit. 2% UK 5% Chile Canada 25 % 8% AKVA group revenues within other species 100 CAGR 2003-2007 •Growth in a number 80 ~86% of regions •144% growth in MNOK. 60 40 20 2007 0 2003 2004 2005 200
Slide 8: Balance sheet items; Strong financial position
Balance sheet items Working Capital (MNOK) ● Working Capital: Working capital represents 130 120 105 109 11,7% of pro-forma 102 110 100 revenues at the end of 4Q. 90 80 70 66 58 70 Working capital stable in 60 50 49 terms of percentage of 40 30 revenues. 20 10 0 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q0
Slide 9: Cash flow statement; Order backlog and inflow
Cash flow statement Cash flow statement 2007 2006 2007 2006 (KNOK) 4Q 4Q Total Total Net cash flow from operational activities 13 757 17 813 20 415 10 588 Net cash flow from investment activities -32 234 -3 122 -129 917 -23 637 Net cash flow from financial activities -20 225 107 434 66 084 148 312 N
Slide 10: Outlook
Background & highlights 4Q 2007 Financial review Outlook Strategic Review Q&A 19 Outlook ● Favourable market conditions in Norway Norway – The market growth continues, large investments indicated by customers over the next years ● Uncertainties in Chile due to challenging health situation The ge
Slide 11: Outlook
Outlook ● Revenues from new markets increasing Mediterranean important Recirculation technology important – growing market ● The cod industry continue contributing to growth Norway main region but others are upcoming ● Strong order backlog at year end ● The outlook for 1H 2008 indicates a furt
Slide 12: Vision statement and strategy
23 Vision statement and strategy “The global leader in aquaculture technology” ● Remain a top-tier growth company ● Strengthen the profitability of the core business ● Lead the technological development ● Attract, motivate and retain competent employees ● Lead the consolidation of the global aquacul
Slide 13: We CARE
25 We CARE Customer in focus our values: Aquaculture CARE Enthusiasm knowledge Reliability 26 and honesty 13
Slide 14: Our culture
Our culture ● We live within our means Historically our primary market has been cyclical. We have to be flexible and cost conscious in everything we do. ● We are down-to-earth and informal Our industry is not known as flashy or show-off industry. It is literally down to earth. We want this refle
Slide 15: World fisheries and aquaculture
World fisheries and aquaculture 160 000 140 000 120 000 100 000 Million tons 80 000 60 000 40 000 Aquaculture China World aquaculure (excl. China) 20 000 Capture China World capture (excl. China) 0 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 Source: FAO 29 Global
Slide 16: Becoming global
31 Becoming global Asia Latin America Mediterranean 32 16
Slide 17: Product portfolio strategy
33 Product portfolio strategy Production Planning and Optimising Software through the value chain Software Process Control Software Other products Machines & – Sensors the biological Structures & production Infrastruc- ture Value Genetic Hatching On- Added Sales & Selection & Nursery growing Harvest
Slide 18: Global macro trends
Global macro trends Intensification, “off-shore”* and enclosed: knowledge based ● Market driven pressure to expand Market ● Shortage of available land ● Shortage of available sea space ● Intensification Technology ● “Off-shore” farms* ● Recirculation (enclosed) ● Knowledge based ● Greater capitalisa
Slide 19: Growth ambitions
Growth ambitions ● Organic growth: Salmon industry expected to increase by more than 60% by 2015 Ambition that other species will grow to 50% of the revenue volume in 2015. ● Acquisitive growth: Completion of the product portfolio Entry into new market areas & regions Market driven acquisi
Slide 20: Appendix: Legal accounts - P&L
Appendix 39 Legal accounts - P&L Hovedtall fra regnskapet Main figures from financial accounts *(Includes Maritech from 1 May 2007) RESULTATREGNSKAP / INCOME STATEMENT 2007 2006 2007 2006 2006 (NOK 1 000) 4Q 4Q YTD YTD Total DRIFTSINNTEKTER / OPERATING REVENUES 236 930 151 623 860 824 355 961 355 96
Slide 21: Legal accounts – Business segments and cash flow
Legal accounts – Business segments and cash flow FORRETNINGSOMRÅDER / BUSINESS SEGMENTS 2007 2006 2007 2006 2006 (NOK 1 000) 4Q 4Q YTD YTD Total FARM OPERATION TECHNOLOGY (OPTECH) DRIFTSINNTEKTER / OPERATING REVENUES 101 593 49 043 343 302 196 123 196 123 Driftskostnader eks. avskrivninger / Operati
Slide 22: AKVA group – global presence
AKVA group – global presence Norway Iceland Scotland Denmark Canada USA Canada S. Korea Turkey AKVA office AKVA representation Vietnam Chile All major industry players as customers 43 22