Drivers and trends in technology development in the salmon industry North Atlantic Seafood Forum Bergen - March 5, 2015 Trond Williksen, CEO

Transcription

1 Drivers and trends in technology development in the salmon industry North Atlantic Seafood Forum Bergen - March 5, 2015 Trond Williksen, CEO

2 AKVA group uniquely positioned Cage-based Land-based Software The most recognized brand in aquaculture technology Plastic and steel cages Land-based facilities Software Leading technology solutions and service partner to the global aquaculture industry Infrastructure Land-based equipment Global presence - subsidiaries in 8 countries 726 employees Feed systems, sensors and cameras Market cap of NOK ~700m 3 Technology and farming services

3 Presence in all main salmon farming regions Map of activities Revenue per region and species, Q Americas 19 % Export 11 % Non Seafood 7 % Other Species 10 % Nordic Americas Export Nordic 70 % Salmon 83 %

4 Completing the best year ever in 2014 Revenues in MNOK +36% EBITDA in MNOK +120%

5 Continued growth expected in the aquaservice segment Cycle development Position in cycle Mid-term growth drivers Cycle development Aquaservice Oilservice Aquaculture still a young industry Aquaservice still in early phase development Large potential in established salmon regions and in emerging markets and spices Main growth driver is profitability in salmon sector fueled by supply deficit Analysts expects 3% annual volume growth in salmon farming in Market growth significantly higher Additional growth from trend towards more exposed areas and land Additional growth from increased regulation Additional growth from other species Time

6 Drivers and trends in technology development in the salmon sector 6

7 The common driving force.search for SUSTAINABILITY ECONOMICAL ENVIRONMENTAL SOCIAL but with «localized» focuses and approaches

8 Aquaculture is becoming increasingly technology-intensive Farming capex, NOK/kg harvested 1) Comparison of cage in 1980 to cage in x Source: Notes: e Salmon farmer annual reports 1) Based on reported farming capex and harvest volumes for Marine Harvest, Salmar, Cermaq, Lerøy, Grieg, NRS and Bakkafrost, 2014 figures are based on company guidance

9 Driving forces salmon industry The exponential challenge of the coastal zone CONCENTRATION OF STAKEHOLDER INTEREST WATER QUALITY AVAILABLE SPACE FOR EXPANSION ENVIRONMENTAL IMPACTS OF CONCENTRATED ACTIVITIES SHORELINE

10 Driving forces salmon industry The exponential challenge of the coastal zone MAIN FOCUS AREA FOR TECHNOLOGY INNOVATION MAJORITY OF RESOURCE ALLOCATION SHORELINE

11 Driving forces salmon industry LAND BASED FARMING EXPOSED SITES FARMING AVAILABLE TECHNOLOGY MAKES DIVERSIFICATION FROM COSTAL SONE POSSIBLE SHORELINE

12 Cage farming development SHELTERED EXPOSED OCEAN FARMING SHORELINE INCREMENTAL DEVELOPMENT: ENLARGEMENT AND INCREASED ROBUSTNESS INCREMENTAL DEVELOPMENT: BASED ON EXPERIENCES FROM AQUACULTURE AND OFFSHORE INDUSTRY

13 Development of land based and closed containment technologies LAND BASED TECHNOLOGY Based on principles of water treatment developed over decades Rapid amendment of technology to aquaculture Reuse of water and energy in controlled environment Extensively used for multiple species SHORELINE

14 Development of land based and closed containment technologies CLOSED CONTAINMENT TECHNOLOGY AT SEA Primarily based on principles of cage based technology Seeks to solve the challenges of the coastal zone and regulatory framework Most examples early phase technologies SHORELINE

15 Other paradigms appearing? PRODUCTION REGION MARKET REGION + LAND BASED EGG, FRY AND SMOLT PRODUCTION CAGE BASED OPEN CONTAINMENT GROWOUT

16 Other 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

17 Still at an early stage «.DRIVEN BY REALISM OR IDEALISM?»

18 Other paradigms appearing? Estimated production cost and greenfield CAPEX to produce 5000 tons of salmon The traditional production cycle: g Freshwater Open pen cage at sea g Total investment cost NOKm Production cost ex finance and depr: ~26,50 NOK/kg HOG The post smolt production cycle: g g Freshwater Seawater on land Open pen cage at sea g Total investment cost NOKm Production cost ex finance and depr: ~25,50 NOK/kg HOG The integrated production cycle: g Freshwater Total investment cost NOKm Production cost ex finance and depr: ~26,75NOK/kg HOG

19 Other paradigms appearing? PRODUCTION REGION MARKET REGION + LAND BASED EGG, FRY AND SMOLT PRODUCTION CAGE BASED OPEN CONTAINMENT GROWOUT VS. FACILITIES WITH INTEGRATED PRODUCTION FROM EGG TO GROWOUT

20 Q & A 20

21