Akva Group Asa · OSL:AKVA
Akva Group Asa — Q4 2021 Earnings Presentation
51 slides from Akva Group Asa's earnings presentation, Feb 11, 2022
Slide 1: Q4 2021 Presentation
Q4 2021 Presentation Oslo, 11 February 2022 Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 2: Technology for sustainable biology
Technology for sustainable biology
Slide 3: Agenda | Q4 2021
Agenda|Q4 2021 Highlights and Financial Q&A Outlook Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 4: Highlights Q4 2021
Highlights|Q4 2021 Operation Innovation and Digital • Continued high focus on developing capabilities within Land • High market activity Based technology and advisory services • Limited impact from the COVID-19 restrictions • Further development of deep-sea open farming concepts is crucial for stren
Slide 5: Key figures Q4 2021
Key figures|Q4 2021 Revenue EBITDA EBIT 831 MNOK 61 MNOK 19 MNOK 60 61 57 831 54 39 757 22 726 19 655 9 557 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 -40 -106 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 5 Note: IFRS 16 was implemented January 2019. Comparable figures for the period 2017-2018 hav
Slide 6: Key figures Full year 2021
Key figures|Full year 2021 Revenue EBITDA excluding cyber-attack costs* EBIT excluding cyber-attack costs* 3 120 MNOK 302 MNOK 120 MNOK 338 3 077 3 177 3 120 302 157 147 272 2 579 130 240 238 120 2 088 62 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 Q4 17 Q4 18 Q4 19 Q4 20 Q4 21 Notes
Slide 7: Market development
Market development Source: Pareto Seafood Price Update 27.01.2022 7 Technology for sustainable biology
Slide 8: Development order intake and order backlog
Development order intake and order backlog Order intake (MNOK) Order backlog (MNOK) 1 933 3 057 2 967 34 19 66 72 867 726 1 881 1 813 1 862 1 317 56 1 014 880 55 67 27 29 1 317 741 1 317 385 651 116 Digital 975 929 948 21 27 Digital 69 14 Land Based Land Based 735 693 AquaCon 602 569 563 850 829 848
Slide 9: Strategic Status
X© Strategic Status
Slide 10: Underlying demand growth implies 1–2 million ton volume increase by 2030
Underlying demand growth implies 1–2 million ton volume increase by 2030 Salmon demand has increased by 1.1 mill tons from 2009-2019. “Base case” assumes similar demand growth till 2030 Consumption of salmon WFE in mill. tons Key demand drivers 5.0 High demand growth (~5%)1 2019-2030: Base case pric
Slide 11: The paradigm shift of land-based farming will require major capex investments
The paradigm shift of land-based farming will require major capex investments until 2030 and beyond Mill. tons WFE +5.1% 4.5 • Restricted fresh supply requires market effort to 1.9 convert demand from fresh to frozen AKVA Group implications: Europe 2.6 Demand NAM 1.3 1.0 • Asian markets critical for
Slide 12: Three main segments within land based
Three main segments within land based Smolt: Post-smolt: Grow-out: 100 - 250 g 250 - 1000 g 5000 g • ~160 BNOK in CAPEX • Smolt production expected to investments needed to reach grow with approx. 300,000 land-based capacity of tons in the next 10 years 800,000 tons by 2030 12 Technology for sustain
Slide 13: Strategy for Land Based Salmon Farming
Strategy for Land Based Salmon Farming Delivering complete scope of fish Market leading Zero Water Concept farming technology (e.g. feeding, fish 1 RAS enabling sustainable and cost- 2 tanks, fish handling, camera, lights, effective production sensors, control system) Data driven insight and intelli
Slide 14: On track for ramping up of Land Based activity to a run-rate of 1 billion NOK
On track for ramping up of Land Based activity to a run-rate of 1 billion NOK ‘000 NOK 1 500 New ongrowing 1 000 Nordic Aqua Partners Phase 2 Nordic Aqua Partners Phase 1 500 Current run-rate smolt/post-smolt 0 2020 2021 2022 2023 2024 * For illustration purposes only 14 Technology for sustainable b
Slide 15: Precision Farming Sea based Solutions
Precision Farming Sea based Solutions Marine Precision Feeding Digital Lice Solution 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 (Farmer's "l
Slide 16: High focus to further develop deep-sea farming concepts
High focus to further develop deep-sea farming concepts Benefits from deep-sea farming AKVA’s current commercial solutions • Avoid or reduce unwanted surface influences like lice, algae, currents, high temperatures. ™ • Better fish health and reduced mortality • Improved fish welfare and reduced fre
Slide 17: Key digital trends in Aquaculture - Fusing
Key digital trends in Aquaculture - Fusing Remote Operations Land based Farming Digital Precision Fish Products & Farming Services Sea Based Farming 17 Business Ecosystem Technology for sustainable biology
Slide 18: Digital – Strengthened Capabilities
Digital – Strengthened Capabilities ➢ Digital Leadership ➢ Product Management ➢ Architecture and Innovation disciplines ➢ UX and Front-End Developers ➢ Digital Business Development ➢ Acquisition of 33,67% stake in Observe Technologies 18 Technology for sustainable biology
Slide 19: Plan – Control - Finance
“We can’t imagine running our operation without Fishtalk. It offers a unique insight and solid understanding of fish biology” Easy production planning of Tone Småge, Måsøval Fiskeoppdrett AS different scenarios and conditions makes comparing strategies effortless and mathematically optimize your pro
Slide 20: Barge Control, Camera Feeding, Control Room
Barge Control Camera Feeding Control Room Enable Precision Feeding Feeding Control Camera Control Flexible Feeding Waterborn Feeding 20 Technology for sustainable biology
Slide 21: Aquaculture powered by Artificial Intelligence
Sensor Reporting systems tools Unify data streams Recommend & Automate Cameras Feed systems 75 60 45 30 15 Aquaculture powered by Artificial Intelligence 00 20:00 00:00 04:00 08:00 16:00 Learn from AI outputs Simulate Decisions 21 Technology for sustainable biology
Slide 22: Technology for sustainable biology
Technology for sustainable biology
Slide 23: Strategic guidance
Strategic guidance Organic topline Operational • Deliver min. 25% Min. 50% increase in 3 Digital platforms: growth excellence EBIT-increase Y-o-Y Innovation spending AKVAconnect, • Step by step improve to support new AKVA Observe and ROACE to min. 15% by Product development Fishtalk 2023. and Organi
Slide 24: Agenda | Q4 2021
Agenda|Q4 2021 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 25: Q4 2021 – Income statement
Q4 2021 – Income statement 2021 2020 2021 2020 NOK million • Revenue increased by MNOK 74 compared to Q4 Q4 Q4 YTD YTD Revenue 831 757 3 120 3 177 20 EBITDA 61 54 252 338 EBITDA margin 7,3 % 7,1 % 8,1 % 10,6 % EBITDA ex. cyber-attack costs1 61 54 302 338 • Higher profit in Q4 21 compared to Q4 20 is
Slide 26: Revenue development
Revenue development • Last twelve months order intake and revenue of MNOK Revenue (MNOK) 4,205 and MNOK 3,120, respectively 832 831 757 • Revenue increased by 10% compared to Q4 20 719 738 • Increased activity in all three business segments in Q4 21 compared to Q4 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 26
Slide 27: Revenue by Market and Segment
Revenue by Market and Segment Revenue by Market* (MNOK) Revenue by Segment (MNOK) 832 831 832 831 18 21 757 21 719 97 738 757 61 20 719 738 14 20 161 14 133 11 19 151 157 115 115 122 112 149 130 153 84 156 144 716 649 580 590 603 512 548 469 463 AustralAsia 427 Europe & Middle East Digital Americas
Slide 28: EBITDA and EBIT development
EBITDA and EBIT development • EBITDA of MNOK 61 / 7,3% in Q4 21 EBITDA EBIT 5,0% 120,0 11,5% 12,0 120,0 5,0 • Increased profit compared to Q4 20 is 110,0 10,7% 11,0 110,0 4,4% 4,5 related to higher activity level 100,0 9,5% 10,0 100,0 3,9% 4,0 90,0 9,0 90,0 3,5 80,0 8,0 • Challenging profit margins
Slide 29: Cash flow and financial position
Cash flow and financial position Available cash Net Working capital Net debt / EBITDA* 700 600 13 1 800 4,1 4,20 12,1% 12,1% 3,9 11,6% 12 603 1 600 3,85 600 500 11 3,4 3,50 3,2 521 10 1 400 3,1 1 252 3,15 500 469 9 1 204 400 375 368 362 1 200 1 081 1 130 2,80 8,2% 8 8,5% 2,45 400 1 000 519 934 7 460
Slide 30: Development return on capital employed
Development return on capital employed ROACE* (%) • ROACE increased from 5,1% in Q3 21 to 5,6% in Q4 15 21 • Target of minimum 15% in 2023 remains unchanged 10 15,0% 5 7,6% 7,4% 6,6% 5,1% 5,6% 0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 2023 target ▪ ROACE is calculated with the average balance sheet items last
Slide 31: Dividend
Dividend • A dividend of NOK 1 per share to be paid in Q1 2022 Cash dividend (NOK per share) 1,75 1,50 1,25 1,00 1,00 1,00 0,75 2016 2017 2018 2019 2020 2021 Q1 2022 31 Technology for sustainable biology
Slide 32: Business segments
XO Business segments
Slide 33: Sea Based Technology
Sea Based Technology • Revenue and order intake increased by 12% and 15% in Q4 21 Revenue (MNOK) and EBITDA-margin (%) compared to Q4 20 1 000 8,0 7,6% 7,5 Nordic 900 6,6% 7,0 • Revenue increased by 4% in Q4 21 compared to Q4 20 800 6,5 • Total order intake of MNOK 384 and 13% increase compared to 6
Slide 34: Development OPEX based revenue
Development OPEX based revenue • Recurring revenue was 16 MNOK lower in Q4 21 Revenue (MNOK) compared to Q4 20 300 39,5% 40 37,6% 35 • Adjusted for the sale of AKVA Marine Services the 250 31,4% 31,4% recurring revenue increased MNOK by 4 in Q4 21 32,9% 30 compared to Q4 20 200 25 • Overall, the act
Slide 35: Land Based Technology
Land Based Technology Revenue (MNOK) and EBITDA-margin (%) • Order intake of MNOK 21 in the quarter compared to MNOK 385 in Q4 2020 170 26 161 157 160 2 0 24 4 0 • Revenue increased by 2% in Q4 21 compared to Q4 20 150 22 140 20 130 • Increased activity on the full grow out project for Nordic Aqua 1
Slide 36: Digital
Digital Revenue (MNOK) and EBITDA-margin (%) • Revenue increased by 6% in Q4 21 compared to Q4 20 40 40 38,5% • Reduced EBITDA margin related to ramp-up of organization 35 35 30 30 25 25 21 20 20 1 20 1 5 EBITDA % 5 15 15 Europe&Middle East 13,1% Americas 10 10 Nordic 14 15 5 5 0 0 2020 Q4 2021 Q4 3
Slide 37: Outlook
XY Outlook
Slide 38: Outlook
Outlook • Salmon prices expected to remain strong driven by reduced supply. On the other hand, uncertainty related to supply chain restrictions and cost inflations may impact the profitability • Order backlog is solid and forms a good foundation to execute our organic growth strategy • Long term fun
Slide 39: Agenda | Q4 2021
Agenda|Q4 2021 Introduction and Financial Q&A Highlights Performance Session Knut Nesse, CEO Ronny Meinkøhn, CFO
Slide 40: 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 41: Appendix
Appendix
Slide 42: AKVA group in brief
AKVA group in brief Leading Listed on Deliveries Companies technology Oslo stock in 65 in 11 and service exchange countries countries. partner since 2006 over 40 1 414 years employees
Slide 43: Our presence
Our presence AKVA group 43 Technology for sustainable biology
Slide 44: Solutions
Solutions Sea Based Technology Land Based Technology Digital 44 Technology for sustainable biology
Slide 45: Revenue by species
Revenue by species Revenue by Species (MNOK) 832 831 41 49 757 719 65 738 60 24 43 20 49 36 64 690 725 722 664 625 Non seafood Other species Salmon Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 45 Technology for sustainable biology
Slide 46: Balance sheet
Balance sheet 33 46 Technology for sustainable biology
Slide 47: Cash flow statement
Cash flow statement 47 Technology for sustainable biology
Slide 48: 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 1 415 126 3,9 % PARETO AKSJE NORGE VERDIPAPIRFOND NOR 926 818 2,5 % VERDIPAPIRFONDET NORDEA KAPITAL NOR 894
Slide 49: Dividend policy
Dividend policy • The company is aiming to give the shareholders a competitive return on investment by a combination of cash dividend and share price increase • The company’s dividend policy shall be stable and predictable • When deciding the dividend, the Board will take into consideration expected
Slide 50: Customer focus
CUSTOMER FOCUS AQUACULTURE 3 KNOWLEDGE RELIABILITY ENTHUSIASM!
Slide 51: AKVA group
AKVAcRouP