Akva Group Asa · OSL:AKVA
Akva Group Asa — Q3 2015 Earnings Presentation
30 slides from Akva Group Asa's earnings presentation, Nov 5, 2015
Slide 1: Q3 2015 Presentation
Q3 2015 Presentation Oslo - November 5th, 2015 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner
Slide 2: Agenda
Agenda 1 Highlights 2 Financial performance 3 Outlook 4 Q&A Your Aquaculture Technology and Service Partner
Slide 3: Highlights Q3 2015 - by CEO Trond Williksen
Highlights Q3 2015 - by CEO Trond Williksen Your Aquaculture Technology and Service Partner 3
Slide 4: Strong performance and growth continues
Strong performance and growth continues Third Quarter 2015 – Highlights 2014 full year vs 2015 YTD Q3 (12 months) (9 months) • All business segments with good performance 1 400 12,0 % • Chile – continues to be profitable in Q3 despite challenging market 1 200 10,0 % conditions 10,0 % • Acquisition o
Slide 5: Strong performance and growth continues: revenue and EBITDA
Strong performance and growth continues Revenue +8% EBITDA +19% MNOK MNOK 355 41 330 34 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 EBITDA of 11.4% in Q3 2015 Your Aquaculture Technology and Service Partner 5
Slide 6: Strong performance and growth continues: order inflow and backlog
Strong performance and growth continues Order Inflow +152% Order Backlog +84% 643 505 187 187 MNOK MNOK 456 317 349 201 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 Best order backlog ever at the end of a third quarter excluding new company Best order bac
Slide 7: AKVA group – uniquely positioned for further growth
AKVA group – uniquely positioned for further growth • The most recognized brand in aquaculture technology • Leading technology solutions and service partner to the global aquaculture industry • Global presence - subsidiaries in 8 countries • 690 employees • Market cap of NOK ~876m and net debt of NO
Slide 8: Presence in all main farming regions
Presence in all main farming regions Map of activities Revenue per region, Q3 2015 Export 17 % Americas 18 % Nordic 65 % Nordic Americas Export Your Aquaculture Technology and Service Partner
Slide 9: 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, Q3 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 OPEX based software and services –
Slide 10: Revenue by product groups and species
Revenue by product groups and species By product groups – Q3 2015 By species – Q3 2015 Land based Non 13 % Seafood 10 % Other Software Species 9% 10 % Cage based Salmon 78 % 80 % Cage based technologies = Cages, barges, feed systems and other Salmon = Revenue from technology and services sold to
Slide 11: Acquisition of Aquatec Solutions A/S
Acquisition of Aquatec Solutions A/S • Acquisition finalized at 30.09.2015 • Purchase of all the shares in Aquatec Solutions for a price of DKK 35 million. In addition AKVA will pay an adjustment amount based on the net debt and working capital position of Aquatec Solutions as of 30.09.2015. Finally
Slide 12: Announcement of dividend from AKVA group ASA – 1.00 NOK per share
Announcement of dividend from AKVA group ASA – 1.00 NOK per share AKVA group ASAs’ current dividend policy: The Company’s main objective is to maximize the return on the investment made by its shareholders through both increased share prices and dividend payments • Step one: NIBD/equity - ratio = 0.
Slide 13: Financial performance Q3 2015 – by CFO Eirik Børve Monsen
Financial performance Q3 2015 – by CFO Eirik Børve Monsen Your Aquaculture Technology and Service Partner 13
Slide 14: Q3 2015 - Financial highlights
Q3 2015 - Financial highlights Revenue • Good overall financial performance continues – taking advantage of the MNOK 450 diversified operations 400 • Tight cost control in Chile – profitable Q3 despite challenging market conditions 350 300 2012 • Acquisition of Aquatec Solutions finalized 30.09.2015
Slide 15: Q3 2015 - Financial highlights, continued
Q3 2015 - Financial highlights, continued EBITDA EBITDA % MNOK 45 14% 40 12% 35 30 10% 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 closer to medium term tar
Slide 16: Cage Based Technologies
Cage Based Technologies Nordic CBT (Revenue & EBITDA %) ● Q3 traditionally a good quarter in Nordic due to high activity 300 277 ● Strong performance continued with a slightly different product mix 270 17% compared to 2014 - a wider range of products contribute to revenue and profit in 2015 vs 2014
Slide 17: Software
Software SW (Revenue & EBITDA %) 35 30% 32 1 30 26,1 % 25% 7 25 ● AKVA group Software AS continues to deliver 25 1 stable and high margins – with improved revenue 20% and margins YoY 5 19,2 % 20 ● A yearly timing effect in accounting of personnel expense July in Norway gives extra good margins 15% i
Slide 18: Land Based Technologies
Land Based Technologies LBT (Revenue & EBITDA %) 50 46 40% 45 1 40 30% 35 35 ● Improved performance YoY and QoQ 3 30 20% ● AKVA group Denmark A/S with decent performance YTD. Still room 25 for improvement financially 45 20 10% 7,0 % ● Plastsveis AS on track with good 15 31 performance YTD 10 0% ● Aq
Slide 19: Financials – Detailed P & L
Financials – Detailed P & L P&L 2015 2014 2015 2014 2014 (MNOK) Q3 Q3 YTD YTD Total OPERATING REVENUES 354,7 329,7 1 081,3 941,0 1 246,1 Operating costs ex depreciations 314,2 295,5 973,2 851,0 1 142,7 EBITDA 40,6 34,2 108,0 90,0 103,4 • Low interest cost due to low Depreciation 12,2 9,1 33,5 26,2 3
Slide 20: Group financial profile – remains strong
Group financial profile – remains strong Available cash Working capital +43 MNOK MNOK 160 20 % MNOK 17,4 % 140 18 % 16 % 120 14 % 100 12 % 10,6 % MNOK 9,1 % MNOK 226 80 8,4 % 10 % 147 145 183 60 127 8% 153 144 144 147 157 100 6% 40 96 4% 68 20 2% 0 0% 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 3Q1
Slide 21: Group financial profile – remains strong, continued
Group financial profile – remains strong, continued ROCE Equity +68 MNOK 15,2 % 500 60% 15,2 % 14,0 % 450 14,1 % 400 50,2 % 44,8 % 50% 12,3 % 350 38,0 % 40% 300 MNOK 250 30% 200 150 20% 100 10% 50 342 339 347 365 375 389 403 417 443 0 0% Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 3Q13 4Q13 1Q
Slide 22: Net debt/EBITDA of 0.8x
Net debt/EBITDA of 0.8x Net debt (MNOK) and net debt/EBITDA Change in net debt (TNOK) 120 4,0 Net debt 30.06.2015 75 795 108 EBITDA -40 564 98 92 Income taxes paid 819 89 90 3,2 82 3,0 Net interest paid 836 75 76 70 Capex paid 15 177 Acquisitions 69 066 60 2,0 Other long term liabilities -13 066 44
Slide 23: Balance sheet
Balance sheet BALANCE SHEET 2015 2014 (MNOK) 30.09 30.09 ASSETS 1 160 836 Intangible non-current assets 337 254 Tangible non-current assets 88 65 Financial non-current assets 8 2 Inventory 209 135 Receivables 382 283 Cash and cash equivalents 136 97 LIABILITIES AND EQUITY 1 160 836 Equity 439 373 Mi
Slide 24: CAPEX
CAPEX Capex (TNOK) and capex / sales (%) CAPEX breakdown YTD Q3 2015 (TNOK) 20 000 18 633 20% 18 000 18% 16 037 16 000 15 177 16% 35 173 14 000 14% 12 266 12 000 10 982 11 017 10 994 12% 7 036 10 000 8 628 9 133 10% 8 000 8% 6% 6 000 5% 5% 6% 4% 4% 4% 3% 3% 3% 4 000 4% 2 000 2% 0 0% Ordinary CAPEX i
Slide 25: Dividend in AKVA group ASA
Dividend in AKVA group ASA AKVA group ASAs’ current dividend policy: • A dividend according to the dividend policy to be paid out in Q4 2015 of 1.00 NOK per share. This amounts to a total The Company’s main objective is to maximize the return on the distribution of 25,834,303 NOK investment made by
Slide 26: Outlooks – by CEO Trond Williksen
Outlooks – by CEO Trond Williksen Your Aquaculture Technology and Service Partner 26
Slide 27: Order backlog and inflow
Order backlog and inflow Order backlog Order inflow MNOK MNOK 700 600 600 500 500 2012 400 2012 400 2013 2013 300 300 2014 2014 200 200 2015 2015 100 100 - - 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Highest order backlog ever after a third quarter before including Aquatec Solutions A/S Highest order backlog ever
Slide 28: Positive outlook – but usual low season in Q4
Positive outlook – but usual low season in Q4 ● Strong mid term outlook due to high market activity and large order backlog ● Q4 is a low season quarter in Nordic which will influence the Groups’ quarterly performance as usual ● Good demand in the Nordic market continues with shift towards more inve
Slide 29: Q & A
Q&A Your Aquaculture Technology and Service Partner 29
Slide 30: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner