Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2019 Earnings Presentation
39 slides from Akva Group Asa's earnings presentation, Nov 1, 2019
Slide 1: Q3 2019 Presentation
Q3 2019 Presentation Oslo – 1 November 2019 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q3 2019 – by CEO Hallvard Muri
Highlights Q3 2019 – by CEO Hallvard Muri
Slide 4: Solid order intake
Solid order intake Order intake • Order intake of 778 MNOK* +74% 1 107 • 3 year service agreement signed with Mowi for the Norwegian 44 marine services 997 46 300 760 • Chile agreed significant barge contract with Australis Mar of 12.6 218 38 778 SW MUSD with estimated delivery in Q3/Q4 2020 639 50
Slide 5: Activity level remains high
Activity level remains high Revenue • 21% increase in revenue compared to Q3 2018 +21% • Egersund Net group of companies included from 1 September 2018 18 • Americas another positive quarter with revenue of 155 MNOK, up from 139 MNOK in Q3 2018 852 798 753 726 • Nordic CBT increase of 23 % compared
Slide 6: EBITDA development
EBITDA development • EBITDA of 115 MNOK in the quarter, including 15 MNOK in effect EBITDA of reclassification due to IFRS 16 (leases) +62% • Sale of Wise with impact of 18 MNOK in net gain 115 101 18 97 • Americas stabilized on a higher level due to improved margins, 7 7 7 8 EBITDA of 14 MNOK compa
Slide 7: Continued high order backlog
Continued high order backlog Order backlog • Third quarter 2019 – Highlights – Order backlog at end of September of 1.5 BNOK +41% 1 611 1 572 – Signed 4 barges with Chilean customer September of 12.6 1 524 1 380 1 381 1 430 1 356 MUSD 1 274 629 611 479 569 – Won Land Based tender with Russian Sea of
Slide 8: Key financial metrics
Key financial metrics Revenue EBITDA EPS +110% +158% +112% 0,47 0,32 0,27 2 422 312 0,27 3,01 1 854 2,80 2,66 1 531 180 182 1 155 121 1,37 Q3 16 Q3 17 Q3 18 Q3 19 Q3 16 Q3 17 Q3 18 Q3 19 Q3 16 Q3 17 Q3 18 Q3 19 YTD YTD YTD Amortization from intangible assets related to acquisitions In August 2018, n
Slide 9: Our presence
Our presence AKVA group Agents and distributors
Slide 10: Revenue in geographical regions
Revenue in geographical regions AKVA group’s geographical regions – absolute and relative 852 798 771 726 627 637 589 557 63% 66% 61% 68% 70% 70% 633 74% 74% 603 541 506 412 392 372 379 19% 22% 20% 113 139 155 23% 24% 20% 125 177 145 17% 17% 128 136 18% 14% 17% 105 90 106 74 76 9% 9% 9% 10% 49 42 59
Slide 11: Development in OPEX based revenue
Development in OPEX based revenue 33,8% • Egersund Net contributing 104 MNOK in the quarter 300 32,3% 35 234 31,2% 257 250 28,2% 245 27,5% 30 • Stable development for the rental business (Scotland and 26,1% Norway) in 2019 22,1% 22,5% 25 200 94 112 90 104 20 • Service in ASA Nordic continued to deli
Slide 12: Revenue by product group and species
Revenue by product group and species By product groups – Q3 2019 By species – Q3 2019 852 852 798 44 1 798 771 56 13 771 726 39 0 28 726 23 66 118 0 68 44 1 95 92 74 35 627 637 627 637 589 42 1 40 1 129 589 47 42 557 189 557 55 Software 47 1 218 212 Non seafood 54 52 46 51 46 0 116 124 34 LBT S&AS 1
Slide 13: Q3 – Operational Highlights
Q3 – Operational Highlights • Wise lausnir ehf an Icelandic subsidiary was sold in Q3 • “First” barge contract signed in Chile, delivery from new partner in Vietnam • Co-operation agreement for Land Based projects entered into with Cooke Aquaculture • 3 years frame agreement signed for Norwegian mar
Slide 14: Risk management Submerge and raise the cage – safe and remote Underwater feeding
1. Atlantis Subsea Farming AS applied for 6 development licenses the 29th of January 2016 2. The Norwegian Directorate of Fisheries have informed the company that the company’s concept has progressed another step further in the process to get awarded development licenses. 3. The Directorate will go
Slide 15: Financial performance Q3 2019 – by CFO Simon Nyquist Martinsen
Financial performance Q3 2019 – by CFO Simon Nyquist Martinsen
Slide 16: Q3 2019 – Financial highlights
Q3 2019 – Financial highlights Revenue • Last twelve months order intake and revenue now at 852 3,586 MNOK and 3,148 MNOK respectively 798 771 726 • The order book has decreased to 1,524 MNOK at the end of 627 637 589 Q3 2019, sale of Wise impacts decrease with MNOK 55 537 557 510 484 449 • Strong g
Slide 17: Q3 2019 – Financial highlights
Q3 2019 – Financial highlights EBITDA (MNOK) • As in first half of 2019, strong contributions from Americas 150 115 97 101 100 • Strong improvements and contribution in the quarter from 65 71 54 59 61 60 57 net washing in sea and the Nordic part of AKVA group ASA 40 43 52 38 50 24 • Egersund Net wit
Slide 18: Cage Based Technology
Cage Based Technology Nordic Revenue and EBITDA % • Improved margins in our Norwegian barge business 800 14 12,6% compared to Q3 2018, but still strong focus on 700 12 operational improvement potential 633 600 10,2% 74 • Strong improvement in quarter from AKVA Marine 10 Services (net cleaning in sea
Slide 19: Cage Based Technology
Cage Based Technology Americas Revenue and EBITDA % • AKVA group Chile signed agreement for delivery of four 800 14 barges, order backlog of MNOK 346 at end of Q3 2019 12,6% 700 12 • Revenue has increased with 16 % compared to YTD Q3 633 2018 600 10,2% 74 10 • EBITDA margins improved with 56% compar
Slide 20: Land Based Technology
Land Based Technology Revenue and EBITDA % • Contract for tender with Russian Sea of 11,9 expected to be signed in Q4 19/Q1 20, this project is not 130 124 14 included in the order backlog 0 120 10 10,5% 12 110 • Co-operation agreement signed with Cooke Aquaculture in August, with potential for deli
Slide 21: Software
Software • AKVA group Software with increased revenue and Revenue and EBITDA % margins in the quarter compared to Q3 2018 45 30 40 27,5% 40 1 • First version of modernized Fishtalk delivered, with 4 open, cloud based API and new modern app’s 35 23,3% 30 28 20 • Brand new control system, AKVAconnect
Slide 22: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2019 2018 2019 2018 2018 Q3 Q3 YTD YTD Total Order backlog 1 524 1 085 1 524 1 085 1 356 Order intake 723 448 2 589 1 558 2 555 • Of which Land Based is 569 MNOK P&L OPERATING REVENUES 771 637 2 422 1 853 2 579 IFRS 16 OPEX* -15 - -44 - - • Investment in subsidiaries
Slide 23: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 485 379 399 500 465 18 400 14 16,1% 12,6% 12,7% 15,8% 450 14,8% 16 350 304 12 400 382 13,8% 10,7% 14 10,2% 356 300 350 292 9,0% 262 10 12 300 10,3% 250 217 8 10 535 250 200 469 8 6 422 200 150 6 307 336 1
Slide 24: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Revenue % CAPEX breakdown 2019 90 000 14,2% 15 Rental 80 000 Intangible 10 502 70 000 30 742 60 000 10 8,4% 50 000 6,8% 5,8% 40 000 5,9% 78 936 30 000 4,3% 4,2% 64 893 5 4,0% 42 852 2,6% 42 225 3,0% 20 000 35 556 31 666 10 000 25 517 23 913 19 495 16 881 83 117 0 0 Ordin
Slide 25: Net interest bearing debt/EBITDA of 1.8
Net interest bearing debt/EBITDA of 1.8 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 800 3,15 Net interest bearing debt 30.06.2019 725 517 726 EBITDA -96 420 700 662 2,80 632 2,6 2,5 Income taxes paid 8 435 605 600 2,2 2,45 Net interest paid 10 384
Slide 26: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 1 063 1 068 1 096 1 100 1 055 50 0,8 1 017 0,74 1 000 0,71 0,68 0,7 39,3% 38,4% 39,8% 0,63 900 38,2% 37,8% 40 0,62 0,60 0,58 0,57 0,6 800 31,4% 30,1% 0,49 700 28,0% 0,5 26,8% 30 600 476 500 491 504 0,
Slide 27: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 15,4% 16,4% 16,9% 16,8% 13,4% 13,7% 14,0% 14,5% 11,9% 9,8% 9,1% 9,0% 10,1% 7,9% 7,9% 8,5% 8,6% 7,0% 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Q3 including twelve months of EBIT from Egers
Slide 28: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2019 2018 2019 2018 2018 (NOK 1 000) Q3 Q3 YTD YTD Total Net cash flow from operations 76 905 65 246 229 944 155 756 204 735 Net cash flow from change in w orking capital 37 779 -55 555 -94 777 -69 513 -50 821 Net cash flow from opera
Slide 29: Balance sheet
Balance sheet BALANCE SHEET 2019 2018 2018 (MNOK) 30.09 30.09 31.12 ASSETS 3 175 2 663 2 703 Intangible non-current assets 1 047 1 080 1 085 Tangible non-current assets 361 324 332 Financial non-current assets 74 64 73 IFRS 16 - RoU Asset 418 - - Inventory 453 427 462 Receivables 663 588 571 Cash an
Slide 30: Dividend and dividend policy
Dividend and dividend policy Dividend Policy Cash Dividend • 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 B
Slide 31: 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 3 900 000 11,7 % WHEATSHEAF INVESTMENTS LIMITED GBP Share price Trading volume 992 392 3,0 % SIX SIS AG Nomi nee CHE VERDIPAPIRFONDET ALF
Slide 32: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 33: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 11 and service exchange countries countries. partner since 2006 over 40 1 443 years employees
Slide 34: Solutions
Solutions Cage Based Technology Land Based Technology Software
Slide 35: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 36: Order backlog and inflow, 2016 through 2019
Order backlog and inflow, 2016 through 2019 Order backlog Order intake 1 611 1 572 1 106 1 523 1 430 997 1 380 1 381 1 356 778 1 318 1 274 300 629 55 218 611 569 778 51 1 077 479 1 085 760 629 998 537 448 620 449 886 639 77 589 51 561 557 430 822 359 533 304 546 697 412 103 471 448 72 33 417 441 417
Slide 37: Outlook – AKVA group
Outlook – AKVA group • Digitalization strategy making further progress with additional installations for Intelligent feeding (also in Norway) • Competitive position strengthened by new cage concept and waterborne feeding, launched Q3 • Strong position for net sales and net services, growth potential
Slide 38: Customer Focus
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 39: AKVAcRovur
AKVAcRovur