Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2008 Earnings Presentation
18 slides from Akva Group Asa's earnings presentation, Aug 20, 2008
Slide 1: 2Q 2008 presentation
The global leader in aquaculture technology 2Q 2008 presentation 20 August 2008 Knut Molaug, CEO Rolf Andersen, CFO Agenda Background & highlights 2Q 2008 Financial review Acquisition of Idema Aqua Outlook Q&A 2 1
Slide 2: AKVA group in brief
3 AKVA group in brief Software systems Cage systems AKVA group facts and services • The leading aquaculture technology supplier • The largest supplier to the aquaculture industry • The only player with global presence • High growth company • Profitable • Industry consolidator Operational systems Fee
Slide 3: 2Q highlights
2Q highlights ● Operating revenue in 2Q was 260 MNOK. The period’s EBITDA was 28.0 MNOK an improvement of 40% compared to 2Q last year. ● Operating revenue for 1H was 466 MNOK. The period’s EBITDA was 44.3 MNOK an improvement of 9% compared to 1H last year. ● The general outlook for the next 6 month
Slide 4: 2Q Financials – P&L
2Q Financials – P&L P&L 2008 (Pro-forma) 2Q 2Q 1H 1H Year (MNOK) 2008 2007* 2008 2007* 2007* Operating revenues 259.8 243.6 467.1 458.8 932.0 Operating costs excl. depreciation -231.8 -223.5 -422.8 -418.0 -841.3 EBITDA 28.0 20.0 44.3 40.7 90.7 Depreciation & Amortisation -6.5 -5.9 -12.5 -11.0 -24.2
Slide 5: Business areas - OPTECH
2Q Financials – P&L comments contd. ● The results were negatively affected by the weak USD compared to the same period(s) in 2007. ● Increased tax percentage in 1H due to lower profit from Chile (which has a lower tax rate). 9 Business areas - OPTECH OPTECH (MNOK) Pro-forma 125 98 101 109 105 107 10
Slide 6: Business areas - INTECH
Business areas - INTECH INTECH (MNOK) Pro-forma 154 150 135 130 135 118 115 103 86 80 100 63 Revenues 50 2008 0 2007 1Q 1Q 2Q 2Q 3Q 3Q 4Q 4Q 2006 20 14,5 17,6 11,7 10,5 10,6 11,5 11,3 9,5 10 6,1 6,7 EBITDA 0 ● 2Q revenues increased by 14% compared to the same period last year, mainly due to increase
Slide 7: Market segments and balance sheet
Market segments Geographic segments Other Iceland • Norway and Chile – Medit.5 % 6% 3% UK Canada 4% dominating segments 7% Norway Chile 55 % 21 % AKVA group revenues within other species 100 CAGR 2003-2007 • Growth in a number of 80 ~86% regions 60 MNOK. 40 20 0 2003 2004 2005 2006 2007 2008* * YTD
Slide 8: Balance sheet items
Balance sheet items Working Capital (MNOK) ● Working Capital: Working capital represents 180 162 16,3% of annualised 160 140 138 revenues at the end of 2Q. 120 105 102 109 The main reason for the 100 66 70 increase is the high activity 80 60 49 58 in 2Q and the acquisition of 40 Idema. 20 The
Slide 9: Cash flow statement
Cash flow statement Cash flow statement 2008 2007 2008 2007 2007 (KNOK) 2Q 2Q YTD YTD Total Net cash flow from operational activities 11 061 -14 564 - 5 247 -14 102 20 415 Net cash flow from investment activities -63 164 -96 402 -71 963 -100 870 -129 917 Net cash flow from financial activities 12 02
Slide 10: Idema Aqua – brief background
Background & highlights 2Q 2008 Financial review Acquisition of Idema Aqua Outlook Q&A 19 Idema Aqua – brief background Idema Aqua is the leading supplier of: Aquaculture underwater lights / lighting systems Aquaculture in-sea net-cleaning machines / in-sea net-cleaning systems The company has opera
Slide 11: The products cont’d
The products cont’d ● Light systems are generally used in the salmon industry to control the sexual maturation process of the fish. ● Normally the maturation is triggered by the seasonal variations of the light. By the use of artificial lighting systems the sexual maturation process is delayed. ● Li
Slide 12: Transaction and other issues
Transaction and other issues ● The agreed consideration for the shares was 64.5 MNOK Idema Aqua is the owner of a property in Hitra, Norway which AKVA group consider to be a strategic good location for further development of services and deliveries to the aquaculture industry. Important clients
Slide 13: Outlook
Background & highlights 2Q 2008 Financial review Acquisition of Idema Aqua Outlook Q&A 25 Outlook ● Satisfactory market conditions in Norway The general market outlook towards the salmon farming industry in Norway remains satisfactory at the moment. Some sanitary concerns ● The Scottish and Cana
Slide 14: Outlook
Outlook ● Order backlog and development The prospect mass and market activities indicate a continuous sound development in the main markets going forward. The reduced activity in Chile may lead to higher seasonal variations Thus the general outlook for the next 6 months remains reasonably stea
Slide 15: Appendix – Legal accounts P&L
Appendix 29 Legal accounts - P&L Hovedtall fra regnskapet Main figures from financial accounts *(Includes Maritech from 1 May 2007, UNI Aqua from 1 October 2007 and Idema from 1 June 2008) RESULTATREGNSKAP / INCOME STATEMENT 2008 2007 2008 2007 2007 (NOK 1 000) 2Q 2Q YTD YTD Total DRIFTSINNTEKTER /
Slide 16: Legal accounts – Business segments
Legal accounts – Business segments FORRETNINGSOMRÅDER / BUSINESS SEGMENTS 2008 2007 2008 2007 2007 (NOK 1 000) 2Q 2Q YTD YTD Total FARM OPERATION TECHNOLOGY (OPTECH) DRIFTSINNTEKTER / OPERATING REVENUES 105 378 91 391 198 122 134 537 343 302 Driftskostnader eks. avskrivninger / Operating costs ex de
Slide 17: Half year P&L development and group organisation
Half year P&L development (pro-forma) OPTECH GROUP INTECH * * 2H 2007 significant positively affected by one off items 33 Group organisation Knut Molaug (CEO) Rolf Andersen Biz. Development (CFO) team IT Steering Technology & product development Committee council Trond Severinsen Jone Gjerde Morten
Slide 18: AKVA group – global presence and history
AKVA group – global presence Norway Iceland Scotland Denmark Canada USA Canada S. Korea Turkey AKVA office AKVA representation Thailand Vietnam Brazil Chile All major industry players as customers 35 AKVA group – brief historic summary 1974: World’s fist plastic cages (Polarcirkel) – today more than