Akva Group Asa · OSL:AKVA

Akva Group Asa — Q4 2015 Earnings Presentation

31 slides from Akva Group Asa's earnings presentation, Feb 19, 2016

  1. Slide 1: Q4 2015 Presentation

    Q4 2015 Presentation Oslo - February 19th, 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 Q4 2015 - by CEO Trond Williksen

    Highlights Q4 2015 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3

  4. Slide 4: Best year ever - second year in a row

    Best year ever - second year in a row Fourth Quarter 2015 and year end – Highlights 2014 vs 2015 • All business segments with good performance in Q4 – best Q4 ever 1 400 • 10,0 % 9,5 % A broader mix of products and services contributing to revenues in 2015 compared to earlier years – becoming a stro

  5. Slide 5: Best Q4 ever – more diversified

    Best Q4 ever – more diversified - smoothing out some of the seasonality Revenue +13% EBITDA +103% MNOK MNOK 344 305 27 13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Your Aquaculture Technology and Service Partner 5

  6. Slide 6: Best order backlog ever

    Best order backlog ever – higher degree of LBT and OPEX based revenue Order Inflow +152% Order Backlog +29% 505 MNOK MNOK 649 460 504 350 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15  Good market activity and sales so far in the new year Your Aquaculture

  7. Slide 7: Building a stronger AKVA - step by step

    Building a stronger AKVA - step by step Revenue +14% EBITDA +31% MNOK 1 425 MNOK 1 246 135 743 103 -10 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Your Aquaculture Technology and Service Partner 7

  8. Slide 8: 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 670 employees Market cap of NOK ~1250m and net debt of NOK 134m Your Aquaculture Technology and Service Partner

  9. Slide 9: Presence in all main farming regions

    Presence in all main farming regions Map of activities Revenue per region, Q4 2015 Export 12 % Americas 15 % Nordic 73 % Nordic Americas Export Your Aquaculture Technology and Service Partner

  10. Slide 10: 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, Q4 2015 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 and services – by developi

  11. Slide 11: Revenue by product groups and species

    Revenue by product groups and species By product groups – Q4 2015 By species – Q4 2015 Land Non based Seafood 25 % 10 % Other Species 12 % Cage based Software 64 % Salmon 11 % 78 %  Cage based technologies = Cages, barges, feed systems and other  Salmon = Revenue from technology and services sold

  12. Slide 12: ATLANTIS SUBSEA FARMING AS

    ATLANTIS SUBSEA FARMING AS • Established in partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS – 33.3% of the shares each • Purpose of developing submersible fish-farming facilities for salmon on an industrial scale • Has applied for six development licences to enable large-scale

  13. Slide 13: Minor adjustment in dividend policy

    Minor adjustment in dividend policy • Change of timing for the half yearly dividend policy to be based on 1st and 2nd half of the year (instead of Q4 – Q1 and Q2 – Q3) • Rationale: ‐ Gives a more intuitive division of the year with 2nd half dividend being announced in connection with the Annual Gene

  14. Slide 14: Financial performance Q4 2015 – by CFO Eirik Børve Monsen

    Financial performance Q4 2015 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 14

  15. Slide 15: Q4 2015 - Financial highlights

    Q4 2015 - Financial highlights Revenue • Good overall financial performance continues – taking advantage of the diversified MNOK operations 450 400 • Land based on track after first quarter with Aquatec Solutions included 350 • Profitable operation in Chile in 2015 despite challenging market conditi

  16. Slide 16: Q4 2015 - Financial highlights, continued

    Q4 2015 - Financial highlights, continued EBITDA EBITDA % MNOK 45 14% 40 12% 35 10% 30 25 2012 8% 2012 20 2013 6% 2013 15 4% 2014 2014 10 2% 5 2015 2015 0% - -5 -2% - 10 -4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Stabilizing on a historical higher EBITDA-level both in NOK and in % Getting close to the medium term

  17. Slide 17: Cage Based Technologies

    Cage Based Technologies Nordic CBT (Revenue & EBITDA %) ● Decent performance in Q4, which traditionally is a low season 250 5% quarter in Nordic CBT 4,4 % 4,6 % 223 220 5% ● Good performance continued with a slightly different product mix compared to 2014 - a wider range of products contribute to 33

  18. Slide 18: Software

    Software SW (Revenue & EBITDA %) 45 25% 40 38 1 22,4 % 3 20% 35 ● AKVA group Software AS continues to deliver stable and 30 30 high margins – with improved revenue and margins YoY 0 5 15% 25 14,1 % ● Wise lausnir ehf – with improved performance YoY 20 ● WiseDynamnics in Canada, a subsidiary of Wise

  19. Slide 19: Land Based Technologies

    Land Based Technologies LBT (Revenue & EBITDA %) 100 40% 86 90 4 80 30% 70 ● 25% of total Group revenue in Q4 60 52 20% ● 9.8% EBITDA in Q4 - significant improved performance YoY and QoQ 50 6 40 82 9,8 % 10% ● Plastsveis AS on track with good performance in 2015 30 ● Aquatec Solutions A/S – included

  20. Slide 20: Financials – Detailed P & L

    Financials – Detailed P & L P&L 2015 2014 2015 2014 (MNOK) Q4 Q4 Total Total • Increased depreciation mainly OPERATING REVENUES 344,1 305,0 1 425,3 1 246,1 due to increased rental CAPEX and amortization Operating costs ex depreciations 316,9 291,7 1 290,2 1 142,7 EBITDA 27,1 13,4 135,2 103,4 • Low i

  21. Slide 21: Group financial profile – remains strong

    Group financial profile – remains strong Available cash Working capital +16 MNOK MNOK160 14 % MNOK 140 11,6 % 12 % 10,1 % 120 9,1 % 8,8 % 10 % 100 8% MNOK MNOK 226 80 6% 183 60 126 127 126 153 147 157 160 106 144 144 4% 40 96 20 2% 0 0% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 4Q13 1Q14 2Q14 3Q1

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

    Group financial profile – remains strong, continued ROCE Equity +39 MNOK 15,2 % 15,0 % 15,2 % 14,1 % 13,9 % 500 50% 43,1 % 450 46,9 % 45% 12,3 % 40,0 % 400 40% 350 35% 300 30% MNOK 250 25% 8,4 % 8,3 % 200 20% 150 15% 100 10% 3,3 % 50 339 347 365 375 389 403 417 443 428 5% 0 0% 4Q13 1Q14 2Q14 3Q14 4Q

  23. Slide 23: Net debt/EBITDA of 1.0x

    Net debt/EBITDA of 1.0x Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 150 136 2,0 Net debt 30.09.2015 97 877 EBITDA -27 130 1,6 120 Income taxes paid 1 182 1,3 98 Net interest paid 1 736 92 89 90 75 1,0 82 Capex paid 32 853 76 70 1,0 1,0 Acquisitions / Divestments -5 500 0,9 0,8 60 0

  24. Slide 24: Balance sheet

    Balance sheet BALANCE SHEET 2015 2014 (MNOK) 31.12 31.12 ASSETS 1 070 904 Intangible non-current assets 348 278 Tangible non-current assets 103 74 Financial non-current assets 8 2 Inventory 181 167 Receivables 320 329 Cash and cash equivalents 110 54 LIABILITIES AND EQUITY 1 070 904 Equity 425 388 M

  25. Slide 25: CAPEX

    CAPEX Capex (TNOK) and capex / sales (%) CAPEX breakdown 2015 (TNOK) 35 000 32 853 20% 18% 30 000 16% 29 700 25 000 14% 18 633 12% 20 000 10% 19 113 16 037 15 871 10% 15 000 12 266 8% 10 982 11 017 6% 10 994 5% 9 133 4% 6% 26 941 10 000 4% 4% 3% 3% 3% 4% 5 000 2% 0 0% Q4 - 2013 Q1 - 2014 Q2 - 2014 Q

  26. Slide 26: 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 3 900 000 814 886 15,1 % 3,2 % WHEATSHEAF INVESTMENT VERDIPAPIRFONDET ALFRED GBR NOR Last 12 months Share price Trading 539 300 2,1 % MP PENSJON PK NOR

  27. Slide 27: Outlooks – by CEO Trond Williksen

    Outlooks – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 27

  28. Slide 28: Order backlog and inflow

    Order backlog and inflow Order backlog Order inflow MNOK MNOK 700 600 600 500 500 2012 400 2012 400 2013 300 2013 300 2014 2014 200 200 2015 2015 100 100 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q  Highest order backlog ever  Best second half order inflow ever - MNOK 854 in order inflow in 2H 2015 vs MNOK 661 in

  29. Slide 29: Maintaining positive outlook

    Maintaining positive outlook ● Good mid term outlook due to high market activity and large order backlog, especially in the Nordic market segment ● Strong demand in the Nordic cage based segment continues into the new year, with shift towards sale of technology for more efficient production ● Land b

  30. Slide 30: Q & A

    Q&A Your Aquaculture Technology and Service Partner 30

  31. Slide 31: Your Aquaculture Technology and Service Partner

    Your Aquaculture Technology and Service Partner

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