Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2023 Earnings Presentation
46 slides from Akva Group Asa's earnings presentation, Aug 11, 2023
Slide 1: Q2 2023 Presentation
Q2 2023 Presentation Oslo, 11 August 2023 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Pioneering a better future
Pioneering a better future AKVAcrour
Slide 3: Agenda | Q2 2023
Agenda|Q2 2023 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO Pioneering a better future
Slide 4: Highlights | Q2 2023
Highlights|Q2 2023 Operation Innovation ▪ Strong order intake of BNOK 1,8 in Q2 and record high order ▪ High focus to further develop and improve our deep sea backlog of BNOK 2,9 at the end of the quarter farming concepts ▪ Award of new RAS contract with Cermaq Norway with ▪ Good progression on furt
Slide 5: Key figures | Q2 2023
Key figures|Q2 2023 Revenue EBITDA EBIT 940 MNOK 86 MNOK 38 MNOK 101 940 93 53 907 862 86 832 79 42 798 38 32 3 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 -41 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Pioneering a better future
Slide 6: Key figures | H1 2023
Key figures|H1 2023 Revenue EBITDA EBIT 1 814 MNOK 145 MNOK 49 MNOK 198 1 814 179 102 1 756 1 650 1 614 162 * 1 551 145 80 68 * 106 49 17 H1 19 H1 20 H1 21 H1 22 H1 23 H1 19 H1 20 H1 21 H1 22 H1 23 H1 19 H1 20 H1 21 H1 22 H1 23 * Note: Costs of 49,7 MNOK related to cyber-attack in H1 21 are excluded
Slide 7: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 840 2 884 89 162 1 984 1 170 1 769 1 062 1 688 106 30 87 1 579 1 905 889 103 827 95 650 34 33 527 1 018 28 779 683 96 32 812 167 Digital Digital 823 704 613 690 Land Based Land Based 902 902 861 817 450 672 Sea Bas
Slide 8: AKVA implications of new resource tax
AKVA implications of new resource tax Implications for AKVA ▪ 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 ▪ For the post smolt market in Norway the resource tax will most likely have a
Slide 9: Strategic and Operational Status
Strategic and Operational Status Pioneering a better future
Slide 10: 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 11: 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 12: Post-smolt RAS concept is validated
Post-smolt RAS concept is validated Pioneering a better future
Slide 13: NOAP phase II is initiated
NOAP phase II is initiated Pioneering a better future
Slide 14: 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 15: Deep sea farming concepts
Deep sea farming concepts NAUTILUS™ TUBENET™ OptiCage Pioneering a better future
Slide 16: Current digital solutions
Current digital solutions 101 sites worldwide on recurring 268 sites worldwide on recurring revenue model revenue model Global market share of 60% - 25 new sites in 2022 - 125 new sites in 2022 - 47 new sites in H1 2023 - 90 new sites in H1 2023 Pioneering a better future
Slide 17: Medium term targets
Medium term targets Long term organic Operational Deliver 6-8% EBIT in Innovation spending 3 Digital platforms: topline growth of excellence and 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 Fis
Slide 18: Agenda | Q2 2023
Agenda|Q2 2023 Introduction and Financial Q&A Highlights Performance Session Pioneering a better future
Slide 19: Q2 2023 – Income statement
Q2 2023 – Income statement NOK million 2023 2022 2023 2022 2022 ▪ Revenues increased by MNOK 33 compared Q2 Q2 YTD YTD Total Revenue 940 907 1 814 1 756 3 376 to Q2 22 Cost of materials 561 618 1 094 1 110 2 107 Payroll expenses 236 225 465 431 881 Other operating expenses 57 60 110 109 230 ▪ EBIT i
Slide 20: Revenue development
Revenue development ▪ Last twelve months order intake and revenue was MNOK Revenue (MNOK) 4,549 and MNOK 3,433, respectively 940 907 862 ▪ Revenue increased by 4% compared to Q2 22 798 832 ▪ Positive trend and increased revenue in Land Based and Digital business areas compared to Q2 22 Q2 19 Q2 20 Q
Slide 21: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 940 907 33 940 874 907 26 840 874 63 27 53 840 145 25 779 174 52 779 74 24 116 127 134 192 70 150 135 163 198 123 178 131 193 193 736 733 681 655 592 541 572 AustralAsia 518 460 394 Europe & Middle East Digital America
Slide 22: EBITDA and EBIT development
EBITDA and EBIT development ▪ Positive trend and EBITDA margin of 9,1% EBITDA EBIT in Q2 120,0 10,0 120,0 4,0% 4,0 9,1% 110,0 9,0 3,0 100,0 100,0 ▪ Profitability in Land Based is still low due 8,0 80,0 1,2% 2,0 90,0 1,0 to due to high cost base and low margins 80,0 6,7% 7,0 60,0 0,0 on parts of proj
Slide 23: 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 4,16 13 4,20 700 11,6% 1 600 637 500 12 3,85 629 454 11 1 400 3,33 600 3,50 522 398 10 3,15 400 9 1 200 1 093 2,71 1 079 1 123 500 8,2% 2,80 8 988 1 000 894 2,45 400 3
Slide 24: Development Net interest-bearing debt
31.03.2023 1 080 EBITDA 86 Net interest 20 8 Corporate taxes Pioneering a better future Change WC 121 CAPEX 32 NIBD Q2 2023 MNOK New IFRS 16 liability 27 Other 78 30.06.2023 1 123 31.12.2022 988 EBITDA 145 Net interest 39 Corporate taxes 12 Change WC 195 CAPEX 96 Development Net interest-bearing deb
Slide 25: Capital expenditure
Capital expenditure CAPEX (MNOK) ▪ Total CAPEX of MNOK 32 in Q2 23 where MNOK 19 applies to our three innovation agendas 64 ▪ 90% of total YTD CAPEX classified as growth 10 investments 53 14 44 11 32 0 25 54 7 39 33 32 18 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Growth Maintenance Pioneering a better future
Slide 26: Development return on capital employed
Development return on capital employed ROACE (%) ▪ ROACE increased from -5,8% in Q1 23 to -1,4% in Q2 23 ▪ Target of 10-15% in 2024 15,0% 3,7% -1,3% -1,4% -3,1% -5,8% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 2024 target ▪ ROACE is calculated with the average balance sheet items last four quarters ▪ ROACE is ca
Slide 27: Dividend
Dividend Cash dividend (NOK per share) ▪ The company has decided not to pay any dividend in the second half of 2023 1,75 1,00 1,00 1,00 2019 2020 2021 2022 Pioneering a better future
Slide 28: Business segments
Business segments Pioneering a better future
Slide 29: Sea Based Technology
Sea Based Technology • Total revenue at the same level as Q2 22 while EBITDA increased Revenue (MNOK) and EBITDA-margin (%) from 5,5% in Q2 22 to 11,2% in Q2 23 • Order intake decreased marginally from MNOK 704 in Q2 22 to 1 300 11,2% 12 MNOK 690 in Q2 23 1 200 10 1 100 8 Nordic 1 000 • Revenue incr
Slide 30: 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 2 700 902 902 817 861 2 600 672 2 500 823 2 400 704 613 690 450 2 300 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 12M Revenue 12M Order Intake Order Backlo
Slide 31: Development OPEX based revenue
Development OPEX based revenue ▪ Positive trend and OPEX based revenue was MNOK 42 Revenue (MNOK) higher in Q2 23 compared to Q2 22 39,2% 350 40 35,8% 33,8% ▪ Activity level at Egersund service stations increased by 4% 300 33,1% 35 in Q2 23 compared to Q2 22 30,0% 30 250 25 200 20 150 263 15 221 226
Slide 32: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) ▪ Strong order intake of MNOK 1,062 in the quarter including RAS contract awarded with Cermaq Norway with an estimated 174 1 0 contract value of minimum MEUR 60 145 3 0 ▪ Revenue increased by 20% in Q2 23 compared to Q2 22 100 ▪ Improved pro
Slide 33: Land Based order intake and backlog development
Land Based order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 1 800 1 600 1 400 1 200 1 905 1 000 800 600 1 018 400 812 1 062 779 200 683 527 96 167 0 34 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 12M Revenue 12M Order Intake O
Slide 34: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) ▪ High order intake of MNOK 89 in the quarter compared to MNOK 28 in the same quarter last year 50 25 23,8% 45 ▪ Recurring revenue base continue to increase, and revenue 40 20 increased by 27% in Q2 23 compared to Q2 22 17,8% 35 33 2 30 15 ▪ EBITDA margin
Slide 35: Digital order intake and backlog development
Digital order intake and backlog development 12M Revenue & Order intake (MNOK) Order backlog & Order intake (MNOK) 200 180 160 140 162 120 100 95 103 106 80 87 89 60 28 32 33 30 40 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 12M Revenue 12M Order Intake Order Backlog Order Intake Pio
Slide 36: Outlook
Outlook Pioneering a better future
Slide 37: 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 ▪ AKVA is targeting minimum BNOK 4 in revenue and 6-
Slide 38: 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 39: Appendix
Appendix Pioneering a better future
Slide 40: Overview slide
Overview slide Leading Listed on Deliveries in Companies in technology Oslo stock 65 countries 11 countries. and service exchange over 40 years 1 394 partner since 2006 employees Pioneering a better future
Slide 41: Our presence
Our presence AKVA group Pioneering a better future
Slide 42: Balance sheet
Balance sheet CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK 1 000) Note 2023 30.6. 2022 30.6. 2022 31.12. Intangible fixed assets 1,3 1 050 021 970 345 989 063 Deferred tax assets 32 649 16 203 44 902 Tangible fixed assets 655 727 637 712 635 245 Long-term financial assets 313 697 340
Slide 43: Cash flow statement
Cash flow statement CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (NOK 1 000) Cash flow from operating activities 2023 Q2 2022 Q2 2023 YTD 2022 YTD 2022 Total Profit before taxes 28 405 -54 206 27 214 -6 837 -151 864 Taxes paid -8 206 -10 614 -12 303 -20 879 -11 370 Share of profit(-)/loss(+) from a
Slide 44: 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 6 600 192 18,0 % Israel Corporation Ltd ISR 1 796 725 4,9 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 1 087 432 3,0 % VERDIPAPIRFONDET NORDEA AVKASTNING NOR
Slide 45: Pioneering a better future
CUSTOMER FOCUS AQUACULTURE 3 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 46: Pioneering a better future
Pioneering a better future AKVAcrRour