Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2009 Earnings Presentation
16 slides from Akva Group Asa's earnings presentation, Aug 27, 2009
Slide 1: 2Q 2009 presentation
The global leader in aquaculture technology 2Q 2009 presentation 27 August 2009 Knut Molaug, CEO Rolf Andersen, CFO Agenda Background & highlights 2Q 2009 Financial review 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 • Strong market position with all main products • The only player with global presence • Strong and experienced management • Growth company in a global growth industry Oper
Slide 3: 2Q highlights
One-stop-shop in aquaculture technology Value chain planning and optimising software 5 Land based farms Cage based farms 2Q highlights ● Operating revenue in 2Q was 164 MNOK which is 37% lower than the same period last year. The period’s EBITDA was 0.4 MNOK primarily negatively affected by reduced r
Slide 4: 2Q highlights
2Q highlights ● Letter of Intents signed in 3Q regarding the sale of the none-core activities in Surefish Inc and Wavemaster Net Services. ● Strategic new contracts won for delivery of aquaculture recirculation systems in Norway and Canada. 7 Background & highlights 2Q 2009 Financial review Outlook
Slide 5: 2Q Financials – P&L
2Q Financials – P&L P&L 2009 2Q 2Q YTD YTD Year (MNOK) 2009 2008 2009 2008 2008 Operating revenues 164.3 259.8 316.7 467.1 866.5 Operating costs excl. depreciation -163.9 -231.8 -319.6 -422.8 -813.8 EBITDA 0.4 28.0 -2.9 44.3 52.7 Depreciation & Amortisation -7.8 -6.5 -15.6 -12.5 -29.5 EBIT -7.4 21.6
Slide 6: Business areas - OPTECH / INTECH
Business areas - OPTECH OPTECH (MNOK) 125 109 105 107 104 101 98 93 97 100 73 82 Revenues 75 50 25 2008 0 2007 1Q 2Q 3Q 4Q 2009 20 1Q 2Q 3Q 4Q 16,4 15 10 9 9,4 10,7 8,5 10,3 EBITDA 5,8 -5,7 5 0 -5 -4,4 -2,4 -10 ● 2Q revenues decreased by 22% compared to last year. ● 2Q EBITDA level fell significantl
Slide 7: Market segments
Market segments Geographic segments (YTD) Other Iceland • Norway dominating 9% 7% Medit. 2% segment • Importance of Chile UK 6% Norway 54 % reduced N. America 10 % Chile 12 % AKVA group revenues within other species 140 CAGR 2003-2008 ~70% • Continued growth in a 120 number of regions • Impacted by
Slide 8: Balance sheet items
Balance sheet items Working Capital (MNOK) ● Working Capital: 220 199 Improvement seen in 2Q Potential to further 200 180 162 172 168 160 improve working capital 138 141 140 120 105 102 109 100 80 60 40 20 0 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Working capital improvements expected: Pa
Slide 9: Financial position
Financial position Equity (%) 70 % ● Equity: 60 % 50 % 47 % 50 % 49 % 50 % 47 % 46 % 46 % 45 % 45 % Sound equity position 40 % 30 % 20 % 10 % 0% 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Cash balance (MNOK) 200 175 Cash ● Cash Position: 150 136 Available cash 55 MNOK Expected non-core asset
Slide 10: Order backlog and inflow
Order backlog and inflow Order backlog and inflow per quarter (MNOK) 400 326 382 373 305 281 253 263 198 189 202 200 183 200 155 147 90 0 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 ● Order backlog is reduced by 122 MNOK compared to the same time last year and 80 MNOK compared to 4Q08. The decline
Slide 11: Outlook
Outlook ● Expectations of a revitalised Norwegian salmon market going forward. Customers experiencing a strong profitability; increase in production volumes, relatively high market prices combined with falling production costs The market uncertainty and the investment holdback by the Salmon indu
Slide 12: Outlook
Outlook ● Norway (contd.) Large investments necessary on the sea based part of the Norwegian industry over the next years to comply with regulation regime, New production licenses contributes and increased MTB will lead to further investments, Too low investment level through the first years a
Slide 13: Outlook
Outlook ● Order backlog and development The order inflow in 1Q and 2Q was significantly lower than anticipated. Continued low inflow from the Chilean business. This market will be difficult over the next years. The dominant shortfall in order inflow in 2Q was from the Norwegian market. The p
Slide 14: Appendix
Background & highlights 2Q 2009 Financial review Outlook Q&A 27 Appendix 28 14
Slide 15: Group organisation
Group organisation Knut Molaug (CEO) Rolf Andersen Biz. Development (CFO) team IT Steering Technology & product development Committee council Trond Severinsen Jone Gjerde Morten Nærland Patrick Dempster (CMO) (COO) (GM Chile) (GM North America) OPTECH INTECH Sales & Research & OPTECH OPTECH Market o
Slide 16: AKVA group – brief historic summary
AKVA group – brief historic summary 1974: World’s fist plastic cages (Polarcirkel) – today more than 40.000 units delivered 1978: First Seafood industry software solution 1980: World’s first automatic feed systems 1984: Maritech: first seafood industry PC based ERP software system Innovations: 1985: