q4 2015 presentation - investor relations - investor relations relations... · p&l 2015 2014...

Your Aquaculture Technology and Service Partner

Q4 2015 PresentationOslo - February 19th, 2016

Trond Williksen, CEOEirik Børve Monsen, CFO


Agenda

Highlights

Financial performance

Outlook

1

2

3

Q&A4

Your Aquaculture Technology and Service Partner3

Highlights Q4 2015 - by CEO Trond Williksen


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 %


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%


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


-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%


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


Presence in all main farming regions

Map of activities Revenue per region, Q4 2015

Nordic

Americas

Export

Nordic73 %

Americas15 %

Export12 %


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 %


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 %


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


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


Financial performance Q4 2015 – by CFO Eirik Børve Monsen


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


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


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 %


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

20

25

30

35

40

45

2014 Q4 2015 Q4

SW (Revenue & EBITDA %)

Nordic Americas Export EBITDA %


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

40

50

60

70

80

90

100

2014 Q4 2015 Q4

LBT (Revenue & EBITDA %)

Nordic Americas EBITDA %


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


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


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

200

250

300

350

400

450

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


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


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


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


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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Outlooks – by CEO Trond Williksen


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

-

100

200

300

400

500

600

700

1Q 2Q 3Q 4Q

2012

2013

2014

2015

MNOK

-

100

200

300

400

500

600

1Q 2Q 3Q 4Q

2012

2013

2014

2015

MNOK


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


Q & A

q4 2015 presentation - investor relations - investor relations relations... · p&l 2015 2014...

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