Post on 19-May-2020
Your Aquaculture Technology and Service Partner
Q4 2015 PresentationOslo - February 19th, 2016
Trond Williksen, CEOEirik Børve Monsen, CFO
Your Aquaculture Technology and Service Partner
Agenda
Highlights
Financial performance
Outlook
1
2
3
Q&A4
Your Aquaculture Technology and Service Partner3
Highlights Q4 2015 - by CEO Trond Williksen
Your Aquaculture Technology and Service Partner
Best year ever - second year in a row
4
• All business segments with good performance in Q4 – best Q4 ever
• A broader mix of products and services contributing to revenues in 2015 compared to earlier years – becoming a stronger and more diversified AKVA group
• Land based with best quarter ever – becoming an important part of AKVA
• Profitable Chile operation in 2015 despite challenging market conditions
• Ending the year with the best order backlog ever
• Dividend of NOK 1.00 per share paid in November
• Best year ever financially – growth in revenues and margins
• Strong financial position
Fourth Quarter 2015 and year end – Highlights
1 246
1 425
103 135
8,3 %
9,5 %
0,0 %
2,0 %
4,0 %
6,0 %
8,0 %
10,0 %
0
200
400
600
800
1 000
1 200
1 400
2014 2015
MN
OK
2014 vs 2015
Operating revenue EBITDA EBITDA %
Your Aquaculture Technology and Service Partner
305 344
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
MN
OK
Revenue
13
27
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
MN
OK
EBITDA
Best Q4 ever – more diversified - smoothing out some of the seasonality
5
+103%
+13%
Your Aquaculture Technology and Service Partner
504
649
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
MN
OK
Order Backlog
Best order backlog ever – higher degree of LBT and OPEX based revenue
6
+152% +29%
505
Good market activity and sales so far in the new year
460
350
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
MN
OK
Order Inflow
Your Aquaculture Technology and Service Partner
-10
103135
2010 2011 2012 2013 2014 2015
MN
OK
EBITDA
743
1 2461 425
2010 2011 2012 2013 2014 2015
MN
OK
Revenue
Building a stronger AKVA - step by step
7
+14%
+31%
Your Aquaculture Technology and Service Partner
AKVA group – uniquely positioned for future growth
Leading technology solutions and service partner to the global aquaculture industry
Global presence -subsidiaries in 8 countries
670 employees
Market cap of NOK ~1250m and net debt of NOK 134m
Your Aquaculture Technology and Service Partner
Presence in all main farming regions
Map of activities Revenue per region, Q4 2015
Nordic
Americas
Export
Nordic73 %
Americas15 %
Export12 %
Your Aquaculture Technology and Service Partner
Strategic priority to increase the proportion of OPEX based revenue
OPEX based vs CAPEX based revenue, Q4 2015 Comments
• OPEX based revenue defined as our revenue booked as OPEX in our customers P&L
• Aim of increasing relative share of OPEX based revenue through software and services – by developing software, farming services, technology services and rental further
• Introduction of rental business model in Norway in late 2014. Already successfully introduced in UK and Canada
• Rental is an “all inclusive” service providing for instance light or picture for an agreed period of time (2 to 5 years duration) -reducing CAPEX and reducing operational work for the customer
• Acquisition of YesMaritime in 2014, a provider of diving, ROV and other services to the salmon farming sector (Farming services)
• Development of Farming Services still in an early stage –opportunities for consolidation
CAPEX based revenue
74 %
OPEX based revenue
26 %
Your Aquaculture Technology and Service Partner
Revenue by product groups and species
11
Cage based technologies = Cages, barges, feed systems and other operational systems for cage based aquaculture
Software = Software and software systems
Land based technologies = Recirculation systems and technologies for land based aquaculture
By product groups – Q4 2015 By species – Q4 2015
Salmon = Revenue from technology and services sold to production of salmon
Other species = Revenue from technology and services sold to production of other species than salmon
Non Seafood = Revenue from technology and services sold to non seafood customers
Salmon78 %
Other Species
12 %
Non Seafood
10 %
Cage based64 %Software
11 %
Land based25 %
Your Aquaculture Technology and Service Partner
ATLANTIS SUBSEA FARMING AS
12
• Established in partnership with the companies Sinkaberg-Hansen AS and Egersund Net AS – 33.3% of the shares each
• Purpose of developing submersible fish-farming facilities for salmon on an industrial scale
• Has applied for six development licences to enable large-scale development and testing of the new technology and operational concept
• Through its innovative development work, ATLANTIS aims both to contribute to better and more sustainable use of current farming sites as well as to enable use of more exposed sites than is currently possible. The goal is to achieve production gains and improve fish welfare by submerging the facilities, as they will be far less exposed to the environmental and physical conditions than in a surface position
• Although ATLANTIS represents a significant leap forward in terms of innovation, it is also an objective for the concept to keep costs at a level that helps strengthen the industry's competitive position. The aim is also that the technology and operating methods developed through ATLANTIS can be made available and adopted by the industry relatively quickly
Your Aquaculture Technology and Service Partner
Minor adjustment in dividend policy
13
• Change of timing for the half yearly dividend policy to be based on 1st and 2nd half of the year (instead of Q4 – Q1 and Q2 – Q3)
• Rationale: ‐ Gives a more intuitive division of the year with 2nd
half dividend being announced in connection with the Annual General Meeting
‐ Evens out more of the seasonality's in cash flowduring the year
• Next possible dividend pay out will be after 1st half 2016, i.e. will be announced together with the 2016 Q2 financials
Your Aquaculture Technology and Service Partner14
Financial performance Q4 2015 – by CFO Eirik Børve Monsen
Your Aquaculture Technology and Service Partner
Q4 2015 - Financial highlights
15
• Good overall financial performance continues – taking advantage of the diversified operations
• Land based on track after first quarter with Aquatec Solutions included
• Profitable operation in Chile in 2015 despite challenging market conditions – due to higher level of service and tight cost control
• WiseDynamics in Canada divested in November 2015 – marginal impact on Group financials
• Share buyback program finalized in November 2015 – Shares awarded to employees in January 2016 according to the announced incentive scheme to employees
• Dividend – NOK 1 per share paid in November 2015
Revenue
-
50
100
150
200
250
300
350
400
450
1Q 2Q 3Q 4Q
2012
2013
2014
2015
MNOK
Your Aquaculture Technology and Service Partner
Q4 2015 - Financial highlights, continued
16
EBITDA EBITDA %
Stabilizing on a historical higher EBITDA-level both in NOK and in %
Getting close to the medium term target of 10% EBITDA on a annual basis
- 10
- 5
-
5
10
15
20
25
30
35
40
45
1Q 2Q 3Q 4Q
2012
2013
2014
2015
MNOK
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
1Q 2Q 3Q 4Q
2012
2013
2014
2015
Your Aquaculture Technology and Service Partner
Cage Based Technologies
17
Nordic
● Decent performance in Q4, which traditionally is a low season quarter in Nordic CBT
● Good performance continued with a slightly different product mix compared to 2014 - a wider range of products contribute to revenue and profit in 2015 vs 2014
Americas
● Chile delivering one of the best years ever margin wise due to reduced cost base and higher level of service
● Canada with a great Q4 and ending the best year ever. Lean and efficient operation
● Australia small but profitable operation – best year ever
Export
● UK also ended their best year ever with high level of OPEX based revenue
● Turkey – best year ever – experiencing increased activity in the Sea Bass and Sea Bream industry
● Export to emerging markets – slow, but some activity - Iran
141 136
5044
3340
223 2204,4 % 4,6 %
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
0
50
100
150
200
250
2014 Q4 2015 Q4
CBT (Revenue & EBITDA %)
Nordic Americas Export EBITDA %
Your Aquaculture Technology and Service Partner
Software
18
● AKVA group Software AS continues to deliver stable and high margins – with improved revenue and margins YoY
● Wise lausnir ehf – with improved performance YoY
● WiseDynamnics in Canada, a subsidiary of Wise ehf was divested in November 2015. Marginal numbers for the group and gave a marginal gain of MNOK 1.5 in Q4 EBITDA
● Software continues to invest in new product modules, which is expected to strengthen the financial performance of the SW segment further
25
34
5
3
0
1
30
38
14,1 %
22,4 %
0%
5%
10%
15%
20%
25%
0
5
10
15
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25
30
35
40
45
2014 Q4 2015 Q4
SW (Revenue & EBITDA %)
Nordic Americas Export EBITDA %
Your Aquaculture Technology and Service Partner
Land Based Technologies
19
● 25% of total Group revenue in Q4
● 9.8% EBITDA in Q4 - significant improved performance YoY and QoQ
● Plastsveis AS on track with good performance in 2015
● Aquatec Solutions A/S – included in the Group P&L from Q4 and onwards. Good performance as expected
● AKVA group Denmark A/S with a decent Q4. Still potential for further improvements financially
46
82
6
4
52
86
-1,1 %
9,8 %
-10%
0%
10%
20%
30%
40%
0
10
20
30
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2014 Q4 2015 Q4
LBT (Revenue & EBITDA %)
Nordic Americas EBITDA %
Your Aquaculture Technology and Service Partner
P&L 2015 2014 2015 2014
(MNOK) Q4 Q4 Total Total
OPERATING REVENUES 344,1 305,0 1 425,3 1 246,1
Operating costs ex depreciations 316,9 291,7 1 290,2 1 142,7
EBITDA 27,1 13,4 135,2 103,4
Depreciation 14,0 9,5 47,5 35,7
EBIT 13,2 3,9 87,7 67,6
Net interest expense -1,7 -0,7 -5,4 -4,8
Other financial items -4,6 -0,9 -4,3 0,0
Net financial items -6,3 -1,6 -9,6 -4,7
EBT 6,9 2,3 78,1 62,9
Taxes -0,8 -6,4 19,7 8,4
NET PROFIT 7,6 8,6 58,4 54,5
Net profit (loss) attributable to:
Non-controlling interests 0,4 -0,2 1,6 -0,6
Equity holders of AKVA group ASA 7,3 8,9 56,8 55,1
Revenue growth 12,8 % 24,1 % 14,4 % 35,6 %
EBITDA margin 7,9 % 4,4 % 9,5 % 8,3 %
EPS (NOK) 0,28 0,34 2,20 2,13
Financials – Detailed P & L
20
• Increased depreciation mainly due to increased rental CAPEX and amortization
• Low interest cost due to low net debt and low interest rate. Increase explained by financial lease mostly related to rental
• Mostly currency and acquisition cost - considered as an acceptable level
• Minority shareholders (30%) in Plastsveis AS
Your Aquaculture Technology and Service Partner
106 126 127 126
11,6 %
10,1 %
9,1 % 8,8 %
0 %
2 %
4 %
6 %
8 %
10 %
12 %
14 %
0
20
40
60
80
100
120
140
160
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
MN
OK
MNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOKMNOK
MNOK
96
153 144
183
144 147 157
226
160
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
MN
OK
Group financial profile – remains strongAvailable cash Working capital
+16 MNOK
Continued strong working capital level – despite record high activity
Due to strong capital discipline
Including a 90 MNOK credit facility in Danske Bank
Cash in Q3 2015 includes the financing of the adjustment amount in the Aquatec Solution acquisition
Your Aquaculture Technology and Service Partner
339 347 365 375 389 403 417 443 428
46,9 %43,1 %
40,0 %
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
50
100
150
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300
350
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500
4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
MN
OK
Total Equity Equity %
Group financial profile – remains strong, continued
22
ROCE Equity
Good nominal increase in equity YoY due to profitable operation
Dividend payments of 25.7 MNOK in Q4 2015 and 25.8 MNOK in Q4 2014
+39 MNOK
3,3 %
8,4 % 8,3 %
15,2 % 14,1 %
12,3 %
15,2 %
13,9 %
15,0 %
Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015
Your Aquaculture Technology and Service Partner
Net debt/EBITDA of 1.0x
23
Change in net debt (TNOK)Net debt (MNOK) and net debt/EBITDA
75
70
92
44
89 82
76
98
136
1,6
1,0
1,3
0,4
0,9 0,8
0,7
0,8
1,0
-
1,0
2,0
-
30
60
90
120
150
Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015
Net interest bearing debt NIBD/EBITDA(12months rolling)
Net debt 30.09.2015 97 877
EBITDA -27 130
Income taxes paid 1 182
Net interest paid 1 736
Capex paid 32 853
Acquisitions / Divestments -5 500
Paid dividend 25 736
Buyback own shares 3 264
Sale of fixed assets -855
Currency effects -4 023
Other changes in working capital 10 976
Net change 38 240
Net debt 31.12.2015 136 117
Your Aquaculture Technology and Service Partner
Balance sheet
24
BALANCE SHEET 2015 2014
(MNOK) 31.12 31.12
ASSETS 1 070 904
Intangible non-current assets 348 278
Tangible non-current assets 103 74
Financial non-current assets 8 2
Inventory 181 167
Receivables 320 329
Cash and cash equivalents 110 54
LIABILITIES AND EQUITY 1 070 904
Equity 425 388
Minority interest 3 2
Long-term interest bearing debt 188 129
Short-term interest bearing debt 57 14
Non-interest bearing liabilities 396 372
Your Aquaculture Technology and Service Partner
CAPEX
25
Capex (TNOK) and capex / sales (%)
MNOK 13 of Q4 2015 CAPEX is rental
MNOK 46 of 2015 CAPEX is not rental – i.e. in line with previous years
26 941
29 700
19 113
CAPEX breakdown 2015 (TNOK)
Ordinary Rental Intagible (R&D)
12 266 10 982
9 133 11 017
18 633
10 994
16 037 15 871
32 853
5%
4% 3% 3%
6%
3%4% 4%
10%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015
Your Aquaculture Technology and Service Partner
Largest shareholders
26
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Share developmentNo of shares % Account name Type Citizenship
13 203 105 51,1 % EGERSUND GROUP AS NOR
3 900 000 15,1 % WHEATSHEAF INVESTMENT GBR
814 886 3,2 % VERDIPAPIRFONDET ALFRED NOR
539 300 2,1 % MP PENSJON PK NOR
518 000 2,0 % SKANDINAVISKA ENSKILDA LUX
489 417 1,9 % EIKA NORGE NOR
397 904 1,5 % STATOIL PENSJON NOR
390 000 1,5 % VERDIPAPIRFONDET DNB NOR
301 700 1,2 % VPF NORDEA KAPITAL NOR
300 000 1,2 % MERTOUN CAPITAL AS NOR
238 692 0,9 % OLE MOLAUG EIENDOM AS NOR
208 100 0,8 % VERDIPAPIRFONDET EIKA NOR
196 300 0,8 % DAHLE BJØRN NOR
180 000 0,7 % VPF NORDEA AVKASTNING NOR
173 550 0,7 % ROGALAND SJØ AS NOR
166 000 0,6 % HAVBRUKSCONSULT AS NOR
146 537 0,6 % UBS (LUXEMBOURG) S.A NOM LUX
130 000 0,5 % SIX SIS AG NOM CHE
123 000 0,5 % AKVA GROUP ASA NOR
114 752 0,4 % MOLAUG OLE NOR
22 531 243 87,2 % 20 largest shareholders
3 303 060 12,8 % Other
25 834 303 100,0 % Total number of shares as per 31.12.2015
No of shares % Origin No of shareholders
20 419 531 79,0 % Norway 800
4 013 502 15,5 % Great Britain 12
675 577 2,6 % Luxembourg 3
251 280 1,0 % USA 8
215 225 0,8 % Switzerland 5
259 188 1,0 % Other 41
Total number of shareholders: 869 - from 20 different countries
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jan. 15 feb. 15 mar. 15 apr. 15 mai. 15 jun. 15 jul. 15 aug. 15 sep. 15 okt. 15 nov. 15 des. 15
Last 12 monthsTradingShare price
030 000 00060 000 00090 000 000120 000 000150 000 000180 000 000
0
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2011 2012 2013 2014 2015
Last 5 yearsTradingvolume
Share price
Origin of shareholders, 5 largest countries
20 largest shareholders
Your Aquaculture Technology and Service Partner27
Outlooks – by CEO Trond Williksen
Your Aquaculture Technology and Service Partner
Order backlog and inflow
28
Order backlog Order inflow
Highest order backlog ever
Best second half order inflow ever - MNOK 854 in order inflow in 2H 2015 vs MNOK 661 in 2H 2014
The good market activity continues
-
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1Q 2Q 3Q 4Q
2012
2013
2014
2015
MNOK
-
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1Q 2Q 3Q 4Q
2012
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MNOK
Your Aquaculture Technology and Service Partner
Maintaining positive outlook
29
● Good mid term outlook due to high market activity and large order backlog, especially in the Nordic market segment
● Strong demand in the Nordic cage based segment continues into the new year, with shift towards sale of technology for more efficient production
● Land based segment with growing activity - is expected to continue - becoming a larger part of AKVA
● UK and Canada experience slightly less project sales so far compared to last year – still expected to perform well
● Continued low expectations in Chile due to challenging situation for our Chilean customers. Our exposure in Chile is reduced over the last years
● Turkey and Australia are expected to continue to perform well in the next quarters with good order backlog
● Exports to emerging markets with a more optimistic start of the year. Activity still expected to fluctuate due to nature of business
● We continue our effort to build service and after sales as a key business element in all markets and segments
Your Aquaculture Technology and Service Partner30
Q & A
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