Akva Group Asa · OSL:AKVA
Akva Group Asa — Q1 2023 Earnings Presentation
45 slides from Akva Group Asa's earnings presentation, May 12, 2023
Slide 1: Q1 2023 Presentation
Q1 2023 Presentation Klepp, 12 May 2023 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Pioneering a better future
Pioneering a better future AKVAcrour
Slide 3: Agenda Q1 2023
Agenda|Q1 2023 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 4: Highlights Q1 2023
Highlights|Q1 2023 Operation Innovation ▪ Order intake of MNOK 1,170 and increase of 12% compared ▪ Positive development on deep sea farming concepts with high to Q1 2022 focus on optimizing the Nautilus solution ▪ Award of new RAS contract with NOAP for next 4,000 tonnes. ▪ Good progression on furt
Slide 5: Key figures Q1 2023
Key figures|Q1 2023 Revenue EBITDA EBIT 874 MNOK 59 MNOK 11 MNOK 102 ** 97 874 59 ** 852 849** 86 83* 752 719 49 59 38 36* 11 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Notes: * EBITDA and EBIT in Q1 2021 is adjusted for costs of 49,7 MNOK related to cy
Slide 6: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 170 1 984 1 048 30 1 849 106 1 769 35 85 1 688 87 1 579 889 103 254 827 527 95 28 34 33 1 018 829 779 96 650 683 32 812 167 759 823 704 Digital Digital 613 935 902 902 861 450 Land Based 672 Land Based Sea Based Se
Slide 7: AKVA implications of new resource tax
AKVA implications of new resource tax Activity level ▪ AKVA’s current products and services within Sea Based and Digital in Norway are supporting core activity and minor implications are expected on activity level ▪ AKVA does not expected new investment decisions within post smolt segment in Norway
Slide 8: Strategic and Operational Status
Strategic and Operational Status Pioneering a better future
Slide 9: Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030
Underlying demand growth implies 0.7-1.3 million ton volume increase by 2030 Extrapolation of underlying demand growth for salmon 2012-2030 Consumption of Atlantic salmon WFE in mill. tons Main supply and demand drivers Growth in demand driven by emerging salmon 5.0 High demand growth (~4.5%)1 2022-
Slide 10: Innovation agenda for Land Based Salmon Farming
Innovation agenda for Land Based Salmon Farming Delivering complete scope of fish Market leading RAS technology farming technology (e.g. feeding, fish 1 enabling sustainable and cost-effective 2 tanks, fish handling, camera, lights, production sensors, control system) Data driven insight and intelli
Slide 11: Post-smolt RAS concept is validated
Post-smolt RAS concept is validated Pioneering a better future
Slide 12: NOAP phase II is initiated
NOAP phase II is initiated Pioneering a better future
Slide 13: Precision Farming Sea Based Solutions
Precision Farming Sea Based Solutions Marine Precision Feeding Digital Deep farming Infrastructure for optimizing feed to support precision to minimize number for secure containment conversion and growth farming with leading, of lice treatments and efficient operations open and modular ▪ Barges digi
Slide 14: Deep sea farming concepts
Deep sea farming concepts NAUTILUS™ TUBENET™ ATLANTIS Pioneering a better future
Slide 15: Current digital solutions
Current digital solutions 64 sites worldwide on recurring 233 sites worldwide on recurring revenue model revenue model Global market share of 60% - 25 new sites in 2022 - 125 new sites in 2022 - 10 new sites in Q1 2023 - 66 new sites in Q1 2023 Pioneering a better future
Slide 16: Medium term targets
Medium term targets Long term organic Operational Deliver min. 8% EBIT Innovation spending 3 Digital platforms: topline growth of excellence and in 2024 to support new AKVA Connect, min. 10% Y-o-Y cost saving Product development AKVA Observe and programs Step by step improve and Organic growth AKVA
Slide 17: Agenda Q1 2023
Agenda|Q1 2023 Introduction and Financial Q&A Highlights Performance Session Pioneering a better future
Slide 18: Q1 2023 – Income statement
Q1 2023 – Income statement ▪ Revenues increased by MNOK 25 compared NOK million 2023 Q1 2022 Q1 2022 Total to Q1 22 Revenue 874 849 3 376 Cost of materials 533 492 2 107 Payroll expenses 229 205 881 ▪ Gain of MNOK 33 from sale of shares in Other operating expenses EBITDA 53 59 49 102 230 158 Atlanti
Slide 19: Revenue development
Revenue development ▪ Last twelve months order intake and revenue was MNOK Revenue (MNOK) 3,536 and MNOK 3,400, respectively 874 852 849 ▪ Adjusted for the sale of Atlantis (MNOK 33) revenue 752 719 increased by 7% compared to Q1 22 ▪ Increased activity level in all three business segments Q1 19 Q1
Slide 20: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 907 26 874 907 849 840 874 27 849 53 840 21 25 145 779 64 52 779 74 24 116 151 134 192 102 70 150 135 163 100 198 123 131 193 193 736 676 681 655 592 584 541 518 AustralAsia 460 394 Europe & Middle East Digital America
Slide 21: EBITDA and EBIT development
EBITDA and EBIT development ▪ Positive trend but profitability is still below EBITDA EBIT expectations 120,0 13,0 120,0 7,0 110,0 12,1% 12,0 6,9% 6,0 100,0 100,0 11,0 5,0 ▪ Low profitability in Land Based due to high 10,0 80,0 4,0 90,0 cost base and low margins on parts of 80,0 9,0 3,0 60,0 1,2% 2,0
Slide 22: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA* 793 13,6% 4,45 800 600 14 1 800 4,27 4,55 731 12,6% 13 4,20 700 1 600 637 500 12 3,85 629 454 11 1 400 3,33 600 561 3,50 409 10 400 1 200 3,02 3,15 500 8,2% 9 1 093 2,71 1 079 988 2,80 8 1 000 971 894 2,45 400 300
Slide 23: Development net interest-bearing debt
Development net interest-bearing debt NIBD Q1 2023 MNOK 16 26 1 079 64 988 74 59 4 19 CAPEX EBITDA Change WC 31.12.2022 Other 31.03.2023 Net interest New IFRS 16 liability Corporate taxes Pioneering a better future
Slide 24: Capital expenditure
Capital expenditure CAPEX (MNOK) ▪ Total CAPEX of MNOK 64 in Q1 23 – MNOK 19 relates to new ERP system – MNOK 18 applies to our three innovation agendas 64 ▪ 76% of total CAPEX classified as growth 53 15 investments 46 14 44 12 11 25 49 7 39 34 33 18 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Growth Maintenance
Slide 25: Development return on capital employed
Development return on capital employed ROACE (%) ▪ ROACE decreased from -3,1%% in Q4 22 to -5,8% in Q1 23 and is negatively impacted by restructuring and high inflation costs in Q2 and Q3 2022 ▪ Target of minimum 15% in 2024 15,0% 7,8% 3,7% -1,3% -3,1% -5,8% Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 2024 target
Slide 26: Dividend
Dividend Cash dividend (NOK per share) ▪ The company decided not to pay any dividend in the first half of 2023 1,75 1,00 1,00 1,00 2019 2020 2021 2022 Pioneering a better future
Slide 27: Business segments
Business segments Pioneering a better future
Slide 28: Sea Based Technology
Sea Based Technology • Adjusted for Atlantis (MNOK 33) total revenue increased by 2% in Revenue (MNOK) and EBITDA-margin (%) Q1 23 while EBITDA was reduced from 9,5% in Q1 22 to 8,5% in Q1 23 1 300 13,9% 14 • Order intake decreased from MNOK 759 in Q1 22 to MNOK 613 in 1 200 13 12 Q1 23 1 100 1 000
Slide 29: Sea Based order intake and backlog development
Sea Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 2 900 2 800 2 700 902 935 902 861 2 600 672 2 500 759 823 2 400 704 613 450 2 300 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 12M Revenue 12M Order Intake Order Backlo
Slide 30: Development OPEX based revenue
Development OPEX based revenue ▪ Recurring revenue was MNOK 35 higher in Q1 23 Revenue (MNOK) compared to Q1 22 39,2% 350 40 33,8% ▪ Activity level at Egersund service stations increased by 300 33,1% 35 17% in Q1 23 compared to Q1 22 30,0% 30 250 27,5% 25 200 20 150 15 221 226 232 221 100 186 10 50
Slide 31: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) ▪ Order intake of MNOK 527 in the quarter compared to MNOK 254 in Q1 22 200 192 2 0 ▪ Revenue increased by 27% in Q1 23 compared to Q1 22 151 0 0 ▪ Profit margins still negative impacted by high cost base and low project margins on parts of
Slide 32: Land Based order intake and backlog development
Land Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 900 800 700 600 1 018 500 400 829 812 779 300 683 527 200 254 96 167 100 34 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 12M Revenue 12M Order Intake Order Backlog Ord
Slide 33: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) ▪ Revenue increased by 26% in Q1 23 compared to Q1 22 on the back of a more robust recurring revenue base 50 25 45 21,8% ▪ Acceptable EBITDA margin of 21,8% and marginally above Q1 22 40 20,2% 20 35 30 15 27 1 25 21 20 1 11 10 7 15 EBITDA % 10 5 15 Europe
Slide 34: Digital order intake and backlog development
Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 130 120 110 100 90 103 106 85 95 80 87 70 60 50 35 28 32 33 30 40 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 12M Revenue 12M Order Intake Order Backlog Order Intake Pio
Slide 35: Outlook
Outlook Pioneering a better future
Slide 36: Outlook
Outlook ▪ Order backlog is sound and forms a good foundation to execute our organic growth strategy ▪ Salmon prices expected to remain strong driven by reduced supply ▪ The implications from the introduction of new resource tax are still uncertain ▪ Medium financial targets remain unchanged and AKVA
Slide 37: Disclaimer
Disclaimer ▪ All opinions and statements in this notice are, regardless of source, given in good faith, and may only be valid as of the stated date of this notice and may be subject to change without notice. AKVA group has taken all reasonable steps to ensure that the information contained in this n
Slide 38: Appendix
Appendix Pioneering a better future
Slide 39: Overview slide
Overview slide Leading Listed on Deliveries in Companies in technology Oslo stock 65 countries 11 countries. and service exchange over 40 years 1 429 partner since 2006 employees Pioneering a better future
Slide 40: Our presence
Our presence AKVA group Pioneering a better future
Slide 41: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2023 31.3. 2022 31.3. 2022 31.12. Intangible fixed assets 1,3 1 032 047 950 561 989 063 Deferred tax assets 33 016 13 627 44 902 Tangible fixed assets 677 035 632 605 635 245 Long-term financial assets 320 539 340
Slide 42: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2023 Q1 2022 Q1 2022 Total Profit before taxes -1 191 47 368 -151 864 Taxes paid -4 097 -10 265 -11 370 Share of profit(-)/loss(+) from associates -4 002 4 405 -7 087 Net interest cost 1
Slide 43: Largest shareholders
Largest shareholders 20 largest shareholders Share development No of shares % Account name Type Citizenship 18 703 105 51,0 % EGERSUND GROUP AS NOR Last 12 months 6 600 192 18,0 % Israel Corporation Ltd ISR Share price Trading volume 1 624 037 4,4 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 1 085 556 3,
Slide 44: Pioneering a better future
CUSTOMER FOCUS AQUACULTURE 3 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 45: Pioneering a better future
Pioneering a better future AKVAcrRour