Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2013 Earnings Presentation
24 slides from Akva Group Asa's earnings presentation, Aug 16, 2013
Slide 1: Q2 2013 Presentation
Q2 2013 Presentation Trondheim - August 16th, 2013 Trond Williksen, CEO Eirik Børve Monsen, CFO Your Aquaculture Technology and Service Partner
Slide 2: Agenda
Agenda ● Highlights Q2 2013 Trond Williksen, CEO ● Financial performance Q2 2013 Eirik Børve Monsen, CFO ● Outlooks Trond Williksen, CEO ● Q&A Your Aquaculture Technology and Service Partner 2
Slide 3: Highlights Q2 2013
Highlights Q2 2013 Your Aquaculture Technology and Service Partner 3
Slide 4: Strong quarter – solid underlying operational performance
Strong quarter – solid underlying operational performance Second quarter 2013 • Significant improvement from Q2 last year – best quarter in 5 years - Revenue of 270 MNOK compared to 212 MNOK in Q2 2012 - EBITDA of 20 MNOK (7.5%) compared to 10 MNOK (4.7%) in Q2 2012. • Slid underlying operational pe
Slide 5: Strong quarter – solid underlying operational performance
Strong quarter – solid underlying operational performance Second quarter 2013, continued from previous slide • Software continuing to perform well – with improved operational revenues and margins compared to Q2 2012 • Land based in a weak mid-season – Plastsveis AS included from Q2 YTD 2013 • Operat
Slide 6: AKVA group – uniquely positioned for future growth
AKVA group – uniquely positioned for future growth Cage based farming Land based farming Technology AKVA group in brief Technology • The most recognized brand in aquaculture technology • Leading technology solutions and service partner to global aquaculture industry • Global presence - subsidiaries
Slide 7: Operational structure
Operational structure Your Aquaculture Technology and Service Partner 7
Slide 8: Global presence – three regions
Global presence – three regions Your Aquaculture Technology and Service Partner
Slide 9: Market segments - Revenue
Market segments - Revene By product groups – Q2 2013 Land based technologies +4 percentage point, Cage based technologies -2 and Software -2 percentage point vs Q2 2012 Cage based technologies = Cages, barges, feed systems and other operational systems for cage based aquaculture Software = Sof
Slide 10: Financial performance Q2 2013
Financial performance Q2 2013 Your Aquaculture Technology and Service Partner 10
Slide 11: Financially a good quarter
Financially a good quarter Revenue • Strong growth in CBT revenue and earnings in all markets except Chile. • Managing to steer through challenging times in Chile with positive earning – significant adjustments done on the cost side in Chile EBITDA • Software continuing to perform well • Improved ba
Slide 12: P & L segments – Cage Based Technologies
P & L segments – Cage Based Technologies ● Strong growth in the Nordic segment both in technology sale and service & aftersales ● Decline in revenues in Chile – as expected, but managing to maintain positive margins. Main challenges in Chile is impact of low prices on salmon, trout and coho earlier
Slide 13: P & L segments – Software
P & L segments – Software ● Software continues to deliver stable revenue and margins ● AKVA group Software AS (Norway), Wise Ehf (Iceland) and Wise Dynamics Inc (Canada) are all contributing positively in Q2 2013 ● Software continues to invest in new product modules to be launched throughout 2013. T
Slide 14: P & L segments – Land Based Technologies
P & L segments – Land Based Technologies ● Improved revenues in AKVA group Denmark and Plastsveis being included from Q2 2013 ● Margins influenced by a weak midseason for land based technologies ● Growing prospect mass gives signals of increased interest in the market expected to materialize during
Slide 15: Financials – Detailed P & L
Financials – Detailed P & L P&L 2013 2013 2012 2013 2012 2012 2012 Q1 revenue and (MNOK) 2Q 2Q YTD YTD Total margins are affected by OPERATING REVENUES 270,2 211,5 492,3 455,2 831,5 the one of gain related to Operating costs ex depreciations 250,0 201,4 461,7 405,4 773,7 the sale of the Norwegian EB
Slide 16: Group financial profile – solid balance sheet
Group financial profile – solid balance sheet Cash balance (in MNOK) Total available cash, including available drawing facility, was 86 MNOK at the end of Q2 2013 vs 108 MNOK at the end of Q2 2012 Down payment of LTD as well as financing of the Plastsveis AS transaction impacting cash compared t
Slide 17: Group financial profile – solid balance sheet, continued
Group financial profile – solid balance sheet, continued Net interest bearing debt (NIBD in MNOK) Net interest bearing debt increased by 15 MNOK in Q2 vs Q2 2012: 18 MNOK in increased NIBD in Q2 due to the acquisition of Plastsveis AS Quarterly down payment of LTD and adjustments in credit fac
Slide 18: Balance sheet
Balance sheet BALANCE SHEET 2013 2012 2012 (MNOK) 30.06. 30.06. 31.12. Intangible fixed assets 223,0 203,9 201,2 Fixed assets 50,9 42,8 45,8 Long-term financ ial assets 27,3 29,7 31,5 FIXED ASSETS 301,2 276,4 278,5 Stoc k 161,9 192,6 161,7 Trade rec eivables 159,0 173,2 163,1 Other rec eivables 41,0
Slide 19: Cash flow statement
Cash flow statement • Investments in Q2 were 10.0 MNOK whereof 4.5 MNOK is capitalized R&D expenses in accordance to IFRS. • YTD investments were 20.0 MNOK whereof 10.0 MNOK is capitalized R&D expenses in accordance to IFRS • Total investments in 2012 were 39.8 MNOK whereof 15.8 MNOK is capitalized
Slide 20: Outlooks
Outlooks Your Aquaculture Technology and Service Partner 20
Slide 21: Order backlog and inflow
Order backlog and inflow Order backlog (in MNOK) Order backlog 208 MNOK by end of Q2 vs 253 MNOK by end of Q2 2012. Reduction in CBT Chile explains most of the reduction Normal mid season order intake in Nordic Order inflow (in MNOK) Total order inflow in Q2 of 151 MNOK vs 190 MNOK in Q2 201
Slide 22: Maintaining optimistic outlook
Maintaining optimistic outlook ● We maintain our positive outlook in the Nordic market for the coming quarters. Significant growth in salmon prices into 2013 drives demand for technology and services. ● We see some positive signals in Chile after significant decline in volumes of sales and deliverie
Slide 23: Q&A
Q&A Your Aquaculture Technology and Service Partner 23
Slide 24: Your Aquaculture Technology and Service Partner
Your Aquaculture Technology and Service Partner