AKVA group. May 23 rd 2018 Simon Nyquist Martinsen, CFO

Transcription

1 AKVA group May 23 rd 2018 Simon Nyquist Martinsen, CFO

2 Agenda Company overview Financials Market drivers and focus areas Beyond Salmon markets

3 Agenda Company overview Financials Market drivers and focus areas Beyond Salmon markets

4 AKVA group in brief Leading technology and service partner Listed on Oslo stock exchange since 2006 Order Intake of 2,5 BNOK in 2017 Deliveries in 65 countries over 40 years Companies in 11 countries. Approx. 950 employees

5 Complete solutions Cage Based Technology Land Based Technology Software

6 Cage Based Technology Steel Cages AKVAconnect Control Software Plastic Cages Underwater Lights Camera Systems Feed Systems Feed Barges Nets ROV Net Cleaner Environmental Sensors Mooring Systems Work Boats Mort Collector

7 Salmon farm in Norway

8 Salmon farm in Chile

9 Land Based Technology Nitrogen De-Gasser Fish Tanks Biofilter Oxygen Cones Particle Filter Central Feed System RAS (Recirculation Aquaculture Systems)

10 Recirculation aquaculture system

11 Software Fishtalk AKVAconnect Support

12 Where do we deliver? AKVA group s geographical regions Order intake % (10 %) 45% (57 %) 15 % (9 %) Nordic Americas Export AKVA group Agents / Distributors 21 % (24 %) Nordic CBT&SW Nordic LBT EME Americas

13 AKVA group has signed LOI to acquire Egersund Net Egersund Net is a 600 MNOK company providing fish nets and mooring solutions. They have around 450 employees in Norway, Litauen and Turkey The transaction is based on an enterprise value of 750 million NOK The seller, Egersund Group, will receive 70 % in shares in AKVA group and the remaining based on cash/debt assumption The transaction is expected to be completed in Q3 2018

14 Egersund Net complement AKVA group s product offering Strategic transaction to become a more complete and innovative supplier Further optimize the total system; cage, net and moorings Offer more complete and efficient services Optimize products life-cycle, including marine operations More efficient customer interactions and interfaces Synergies mainly within sales, both in Nordic and in export markets Transaction will strengthen AKVA group s share of opex based business

15 Egersund Net overview Products and Services Revenue and EBITDA Revenue composition Nets and mooring solutions for the fish farming industry In addition to traditional fish farming nets, Egersund offers top nets, tube nets and special products such as sweep nets, fish sorting and mort collector nets Revenue mnok Adjusted EBITDA 10-15% 603 Products Services Full range services; wash/disinfection, repair and antifouling/coating % 54% % B * Pro forma * Egersund Net AS, 2017

16 Agenda Company overview Financials Market drivers and focus areas Beyond Salmon markets

17 Revenues, Order intake and EBITDA AKVA group AKVA group AKVA group Revenues (MNOK) Order intake (MNOK) EBITDA (MNOK) % % % * 2017* Nordic Americas EME Nordic Americas EME Nordic Americas EME *Excluding one off in 2016 Your Aquaculture Technology and Service Partner

18 Revenue by product group and species By product groups Q By species Q ,1 % (0,1%) 8,3 % (8,8%) 22,3 % (17,2%) 51,6 % (54,5%) 5,7 % (8,4 %) 9,7 % (9,9%) 17,7 % (19,4%) 84,6 % (81,7%) Cage Based Tech S&AS Cage Based Land Based Tech S&AS Land Based Software Salmon Non seafood Other species

19 Agenda Company overview Financials Market drivers and focus areas Beyond Salmon markets

20 Driving forces salmon industry SHORELINE LAND BASED FARMING Challenge of nearshore farming SALMON LICE EXPOSED SITES FARMING OCEAN FARMING CONCENTRATION OF STAKEHOLDER INTEREST WATER QUALITY AVAILABLE SPACE FOR EXPANSION ENVIRONMENTAL IMPACTS OF CONCENTRATED ACTIVITIES

21 Submerge and raise the cage safe and remote Risk management Underwater feeding Fish health operations Daily operations (dead fish removal, surveillance, cleaning, etc) Air to the salmon Artificial air space

22 Paradigms appearing CLOSED CONTAINMENT LAND BASED OPEN CONTAINMENT CAGE BASED A The traditional production cycle: g The post smolt production cycle: Open pen cage at sea g B g g Open pen cage at sea g C The integrated production cycle: g

23 Agenda Company overview Financials Market drivers and focus areas Beyond Salmon markets

24 AKVA group non-salmon activities Approx. 90% of sales to the salmon sector...however, salmon only accounts for 4% of the global aquaculture production 10% 4% 90% Salmon Other species 96% Salmon Other species.no question a potential but we are faced with several challenges in immature markets

25 Tilapia farm in Lake Victoria, Uganda

26 Fish farms in China cages in one area

27 Challenges in immature export markets Challenges Lack of fish farming competence Lack of project completion capacity Unpredictable and undeveloped markets Political and legal risks Corruption, reputation and corporate governance risks Health, safety and environment (HSE)

28 Challenges in immature export markets

29 Opportunities - key success factors Key success factors Focus on clusters, key customers and large projects What NOT to do Offer experienced farm management Require site surveys Legal contracts, trade and finance competence HSE, Code of Conduct and Anti-corruption program Persian Gulf, Iran

30 AKVA s top prioritized clusters outside of salmon AKVA group s geographical regions PRIORITY area MEDITERRANEAN (Subsidiaries in Turkey, Spain and Greece, agents in North Africa) Nordic Americas Export AKVA group Agents and Distributors

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