Akva Group Asa · OSL:AKVA
Akva Group Asa — Q2 2010 Earnings Presentation
23 slides from Akva Group Asa's earnings presentation, Aug 19, 2010
Slide 1: 2Q 2010 presentation
The global leader in aquaculture technology 2Q 2010 presentation 19 August 2010 Morten Nærland, CFO & Acting CEO
Slide 2: Agenda
Agenda Background & highlights 2Q Q 2010 Financial review Outlook Q&A 2
Slide 3: Global leader in aquaculture technology
Global led@er in aquacuttare technology. Nothiag more. Nothingless.
Slide 4: AKVA group in brief
AKVA group in brief Software systems Cage systems Facts about AKVA group & services • The leading supplier of aquaculture technology. • Strong market position for all main products • The only supplier with ”global” global presence. • Leading supplier in a global growth industry. Feed barges Recircul
Slide 5: One-stop-shop in aquaculture technology
“One-stop-shop” in aquaculture technology Value a ue C Chain a SoSoftware t a e Land Based Farms Cage Based Farms 5
Slide 6: 2Q highlights
2Q highlights ● Operating revenues in 2Q were 176 176.3 3 MNOK versus 164.3 MNOK last year. ● The EBITDA in 2Q was -11.9 MNOK versus 0.4 MNOK last year. Restructuring charges of 6.3 MNOK Cost overrun in land based projects ● Order backlog at the end of 2Q2010 was 316 MNOK which is 133 MNOK highe
Slide 7: Events subsequent to 30.06.2010
Events subsequent to 30.06.2010 ● Knut Molaug stepped down from the position as CEO Morten Nærland, the CFO, appointed to Acting CEO Smaller group management team • Latin America and North America organized into Americas • Scotland organized into Export • PRU Hardware and PRU Recirculation organ
Slide 8: New Management Structure
New Management Structure Morten Nærland Acting CEO Morten Nærland CFO Odd Martin Andrew Trond Solem Per A. Hjetland Stig M Bø Campbell Severinsen Director SW COO Nordic Sales Director CMO / Export Americas Jens Hernes Per A Hjetland Jørgen Scheel Helgeland HW Bryne y RAS DK Plast 8
Slide 9: Agenda
Agenda Background & highlights 2Q Q 2010 Financial review Outlook Q&A 9
Slide 10: 2Q Financials – P&L
2Q Financials – P&L P&L 2010 2010 2009 2010 2009 2009 (MNOK) 2Q 2Q YTD YTD Total OPERATING REVENUES 176,3 164,3 334,3 316,7 599,3 Operating costs ex depreciations 188,2 163,9 345,7 319,6 610,9 EBITDA -11,9 0,4 -11,4 -2,9 -11,5 Depreciation 75 7,5 78 7,8 15 0 15,0 15 6 15,6 30 9 30,9 EBIT -19,5 -7,4
Slide 11: 2Q Financials – P&L comments
2Q Financials – P&L comments ● Operating revenue in 2Q10 was 176.3 176 3 MNOK. The quarterly revenue was slightly up compared to 2Q 2009. Continued low revenues due to slow investment programs with the customers ● The EBITDA result was -11.9 MNOK Low volume compared to cost base Cost overrun
Slide 12: Market segments
Market segments Geographic segments (YTD) Other 16 % • Norway is the dominating segment seg e t UK and Ireland • The UK and other markets are 11 % Norway showing a positive development • Chilean 58 % L i Latin Chil market k th has reduced d d it’s it’ America 9 % North importance compared to the Ame
Slide 13: Market segments
Market segments AKVA group revenues within other species 140 MNOK. 120 CAGR 2003-2009 ~50% 100 80 60 40 20 0 2003 2004 2005 2006 2007 2008 2009 2010* * Sales and order backlog for delivery in 2010 per 2Q. • The positive development within other species than salmon continue. • Major contract for deli
Slide 14: Balance sheet
Balance sheet BALANCE SHEET 2010 2009 2009 (MNOK) 30.6. 30 6 30.6. 30 6 31.12. 31 12 Intangible fixed assets 242,5 256,2 243,9 Fixed assets 38,3 47,8 39,1 Long-term financial assets 1,0 1,1 1,1 FIXED ASSETS 281,8 , 305,1 , 284,1 , Stock 138,3 121,9 116,2 Trade receivables 162,1 149,8 125,4 Other rec
Slide 15: Balance sheet items
Balance sheet items Working Capital (MNOK) ● Working Capital: Seasonal increase in 220 200 199 172 working capital in 2Q 180 162 168 160 140 141 128 120 113 The company continue 106 120 100 to focus on maintaining 80 60 40 a low working capital. 20 0 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10
Slide 16: Financial position
Financial position Equity (%) ● Equity: 55 % Equity position affected 50 % 47 % 46 % 46 % 46 % by the negative results 45 % 45 % 45 % 42 % 39 % 40 % 35 % 34 % 30 % 25 % 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Cash balance (MNOK) 150 ● Cash Position: 125 Available cash 62 100 MNOK 75 63 57 5
Slide 17: Cash flow statement
Cash flow statement CASH FLOW STATEMENT 2010 2009 2010 2009 2009 (NOK 1 000) 2Q 2Q YTD YTD Total Net cash flow from operational activities -16,4 26,0 -4,7 19,7 32,7 Net cash flow from investment activities -4,7 -10,9 -8,9 -15,9 -24,1 Net cash flow from financial activities 32,0 -3,7 9,8 -0,4 1,7 Net
Slide 18: Agenda
Agenda Background & highlights 2Q Q 2010 Financial review Outlook Q&A 18
Slide 19: Order backlog and inflow
Order backlog and inflow O d Order b kl backlog (MNOK) MNOK ● The order backlog was 350 300 250 316 MNOK at the end 200 of 2Q. 150 ● Up 73% compared to 100 50 0 same period last year. 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Order inflow (MNOK) MNOK 250 ● Order inflow was 232 MNOK O in 2Q. Q 200
Slide 20: Outlook
Outlook ● Market development The market fundamentals for AKVA’s main customers remain relative unchanged from 1Q. Customers are experience healthy earnings. The balance between supply and demand for Atlantic salmon expected to be favourable through 2010 and 2011. This indicating healthy prices.
Slide 21: Agenda
Agenda Background & highlights 2Q Q 2010 Financial review Outlook Q&A 21
Slide 22: AKVA group – global presence
AKVA group – global presence Norway Iceland Scotland Denmark Canada Canada Turkey AKVA office China AKVA representation Thailand Vietnam Malaysia Chile All major industry players as customers 22
Slide 23: 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 ations: 1985: Firs