Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2018 Earnings Presentation
37 slides from Akva Group Asa's earnings presentation, Aug 15, 2018
Slide 1: Q2 2018 Presentation
Q2 2018 Presentation Oslo – August 15th 2018 Hallvard Muri, CEO Simon Nyquist Martinsen, CFO
Slide 2: Agenda
Agenda Highlights Financial performance Outlook Q&A
Slide 3: Highlights Q2 2018 – by CEO Hallvard Muri
Highlights Q2 2018 – by CEO Hallvard Muri
Slide 4: Order Intake development
Order Intake development Order intake • Order intake in Nordic CBT down compared to Q2 2017, but -39% at solid level. At 512 MNOK YTD 2018 still up vs. H1 2017 778 48 • Positive trend remains in Americas with order intake of 139 639 557 MNOK in Q2 2018 (up from 128 MNOK same period LY), 561 589 33 4
Slide 5: Backlog driving revenue
Backlog driving revenue Revenue • 17% increase in revenue compared to Q2 2017 +17% • Europe & Middle East increased the revenue from 54 MNOK in Q2 2017 to 90 MNOK in Q2 2018 • Another strong quarter in Americas with revenue up 105% compared to Q2 2017 627 557 589 510 537 484 • Revenue for the Land B
Slide 6: EBITDA effected by acquisition cost
EBITDA effected by acquisition cost EBITDA • Adjusted for 8 MNOK in acquisition costs related to the Egersund Net transaction EBITDA 60 MNOK in Q2 -8% • Europe & Middle East EBITDA at 7 MNOK, up from 4 MNOK last year 8 • Land Based segment ends the quarter with an EBITDA of 12 MNOK compared to 5 MNO
Slide 7: Outlook remain positive
Outlook remain positive Order backlog • Second quarter 2018 – Highlights -3% 1 430 – Order backlog end of June of 1.27 BNOK 1 318 1 380 1 381 1 274 1 077 479 – Adjusted EBITDA of 60 MNOK in the quarter 998 629 537 449 620 886 430 – Signed transaction agreement with Egersund 412 417 Group AS regardin
Slide 8: Operational leverage and profitable growth
Operational leverage and profitable growth Revenue EBITDA EPS +67% +63% +42% 1 216 119 1,80 111 1,67 1 047 801 82 727 1,18 68 1,01 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 YTD YTD YTD Not adjusted for acquisition costs related to the Egersund Net transaction
Slide 9: Where do we deliver
Where do we deliver AKVA group’s geographical regions Income distribution Q2 2018 20%(10%) 18%(11%) 62%(79%) Nordic Americas Export Nordic AKVA group EME Agents and Distributors Americas
Slide 10: Development in OPEX based revenue
Development in OPEX based revenue 150 35 30,6% • The Marine Service business in Chile developing well and positive 28,3% 29,0% 30 outlook for further growth 27,1% 26,1% 23,4% 25 100 22,1% 22,5% • Stable development for the rental business (Scotland and 20 Norway) in 2018, but several good opportunit
Slide 11: Revenue by product group and species
Revenue by product group and species By product groups – Q2 2018 By species – Q2 2018 627 627 589 42 589 55 537 557 1 537 557 47 52 46 510 46 1 116 510 54 41 484 34 449 41 1 484 0 108 449 52 54 32 1 38 0 124 28 46 40 112 30 0 84 83 82 98 44 37 Software 354 77 354 38 33 1 78 104 99 Non seafood 51 LBT
Slide 12: Q2 – Operational Highlights
Q2 – Operational Highlights • Continued positive development in Americas / Chile in Q2, also for the Land Based segment • Good outlook for Russia with new orders signed in Q3 • Pipeline of Land Based projects remains strong in Norway and other markets, but decisions continues to be pushed out in tim
Slide 13: 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 14: Financial performance Q2 2018 – by CFO Simon Nyquist Martinsen
Financial performance Q2 2018 – by CFO Simon Nyquist Martinsen
Slide 15: Q2 2018 – Financial highlights
Q2 2018 – Financial highlights Revenue 627 • 17% growth, a new quarter with strong contributions 589 557 from Americas and Europe & Middle East 537 510 484 449 • Last twelve months order intake and revenue now at 393 402 408 355 354 2,213 MNOK and 2,257 MNOK respectively 325 344 • The order book has
Slide 16: Q2 2018 – Financial highlights
Q2 2018 – Financial highlights EBITDA (MNOK) 80 • Adjusted for acquisition costs the EBITDA is 60 MNOK 59 65 61 60 60 54 52 in the quarter, and the EBITDA margin is 9,6% 40 41 43 41 38 40 27 27 24 20 • Driven by a strong order book revenue and EBITDA is 0 significantly up in Americas and EME, areas
Slide 17: Cage Based Technologies
Nordic Cage Based Technologies • Margins impacted by full 8 MNOK of acquisition costs Revenue and EBITDA % • Revenue in Nordic is down compared to 2017, although on a high level 500 13,9% 467 14 • Investments in new manufacturing lines at Helgeland Plast, as well as ramping up the Marine Service bus
Slide 18: Land Based Technologies
Land Based Technologies Revenue and EBITDA % • Several medium sized orders won in 120 117 12 113 Canada, Chile and Scotland in Q2, 3 110 2 although decisions for larger post smolt 10,5% 10 orders in Norwegian pipeline has been 100 delayed 90 8 80 • Pipeline of projects continue to be good 70 6 111 1
Slide 19: Software
Software Revenue and EBITDA % • AKVA group Software ends the quarter 60 20 with an EBITDA of 2.4 MNOK compared to 55 15,5% 3.4 MNOK in Q2 2017 50 45 41 10,7% 42 10 • Wise ehf ends the quarter with an EBITDA 1 40 1 4 of 1.7 MNOK compared to 2.5 MNOK in 4 the same quarter in 2017 35 30 0 • Margins imp
Slide 20: Financials – Detailed P&L
Financials – Detailed P&L (MNOK) 2018 2017 2018 2017 2017 Q2 Q2 YTD YTD Total Order backlog 1 274 1 318 1 274 1 318 1 381 Order intake 471 778 1 110 1 367 2 471 • Of which Land Based is 449 MNOK P&L OPERATING REVENUES 627 537 1 216 1 047 2 088 • Includes 8 MNOK of acquisition costs Operating costs e
Slide 21: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital Average working capital 8,2% 200 8,4% 9 200 8 186 7,5% 8,8% 175 6,7% 8 6,5% 6,3% 7 6,8% 6,7% 7,1% 7,2% 153 150 127 7 150 6 6,2% 5,5% 135 137 131 5,8% 5,0% 124 122 6 5,7% 118 5 109 106 107 5,3% 5 98 102 100 100 100 4 462 4 85 420
Slide 22: CAPEX
CAPEX (TNOK) CAPEX and CAPEX/Sales % CAPEX breakdown YTD 2018 90 000 14,2% 15 Rental Intangible 3 808 80 000 70 000 11,2% 13 094 60 000 10 50 000 6,9% 6,8% 40 000 5,5% 5,9% 78 936 30 000 4,2% 57 368 4,0% 4,3% 5 20 000 42 852 31 666 10 000 24 407 24 728 25 517 17 067 19 495 51 468 0 0 2Q 2016 3Q 2016
Slide 23: Net interest bearing debt/EBITDA of 1.6
Net interest bearing debt/EBITDA of 1.6 Net interest bearing debt (MNOK) and net debt/EBITDA Change in net interest bearing debt (TNOK) 400 2,0 2,10 Net interest bearing debt 31.03.2018 309 371 371 356 EBITDA -51 830 310 298 309 Income taxes paid 3 877 1,6 1,6 1,75 300 279 Net interest paid 3 368 1,
Slide 24: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued Equity and Equity / Total Balance NIBD / Equity 520 40 0,74 0,8 500 499 0,71 500 38,9% 476 491 0,70 37,1% 473 0,7 480 31,4% 0,63 0,63 460 435 446 29,4% 28,0% 30 0,58 0,6 460 31,6% 31,3% 26,5% 437 30,1% 440 0,49 0,49 0,5 420 20 0,37 0,4 400 380 0,3
Slide 25: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE ROACE 15,4% 16,4% 13,7% 15,1% 16,5% 17,0% 14,7% 14,0% 13,4% 14,6% 12,4% 13,2% 12,7% 11,1% 11,4% 10,9% 9,8% 9,6% 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
Slide 26: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW 2018 2017 2018 2017 2017 (NOK 1 000) Q2 Q2 YTD YTD Total Net cash flow from operations 43 846 62 059 90 510 105 107 195 535 Net cash flow from change in w orking capital -59 554 -7 089 -13 959 -81 827 -108 130 Net cash flow from opera
Slide 27: Balance sheet
Balance sheet BALANCE SHEET 2018 2017 2017 (MNOK) 30.06 30.06 31.12 ASSETS 1 881 1 606 1 663 Intangible non-current assets 583 583 596 Tangible non-current assets 268 197 246 Financial non-current assets 10 10 7 Inventory 257 211 238 Receivables 607 491 459 Cash and cash equivalents 157 113 117 LIAB
Slide 28: 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 29: 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 Last 12 months 3 900 000 15,1 % WHEATSHEAF INVESTMENT GBR Share price Trading volume 1 199 372 4,6 % VERDIPAPIRFONDET ALF NOR VPF NORDEA KAPITAL NOR 100
Slide 30: Outlook – by CEO Hallvard Muri
Outlook – by CEO Hallvard Muri
Slide 31: 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 1 012 years employees
Slide 32: Solutions
Solutions Cage Based Technology Land Based Technology Software
Slide 33: CAPEX Based Revenue / OPEX Based Revenue
CAPEX Based Revenue OPEX Based Revenue
Slide 34: Order backlog and inflow, 2015 through 2018
Order backlog and inflow, 2015 through 2018 Order backlog Order intake 1 430 778 1 380 1 381 1 318 1 274 639 1 077 479 589 51 304 629 998 537 533 546 561 557 620 449 103 504 72 33 886 471 92 430 822 441 412 417 697 368 101 87 643 417 649 348 250 214 57 350 547 36 283 494 437 588 80 63 93 286 264 951
Slide 35: Outlook – AKVA group
Outlook – AKVA group • Egersund Net integration planning well advanced • Continued positive outlook for most markets, good opportunities to grow on the Canadian east coast • Land Based – focus on post smolt, still high quote bank • Execution of improvement programs, manufacturing, sourcing and logis
Slide 36: CUSTOMER FOCUS
CUSTOMER FOCUS AQUACULTURE % KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 37: AKVAcRovur
AKVAcRovur