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AKVA Group Investor Presentation 2010
3532_rns_2010-02-18_96255a4e-ff38-42a5-a517-f4f49a43bfa4.pdf
Investor Presentation
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AKVA GROUP
The global leader in aquaculture technology
4Q 2009 presentation
18 February 2010
Knut Molaug, CEO
Morten Nærland, CFO
akvasmart™ fishtalk™ wavemaster™ polarcirkel™
AKVA GROUP
Agenda
Background & highlights
4Q 2009 Financial review
Outlook
Q & A
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Global leader in aquaculture technology. Nothing more. Nothing less.
AKVA life
2008-2015
AKVA GROUP
AKVA group in brief
| Cage systems | AKVA group facts | Software systems and services |
|---|---|---|
| • The leading aquaculture technology supplier | ||
| • Strong market position with all main products | ||
| • The only player with global presence | ||
| • Strong and experienced management | ||
| • Leading supplier to a global growth industry | ||
| Feed barges | Recirc. systems | Feed systems |
AKVA's main product brands: ☐ wavemaster ☐ polarcirkel ☐ fishtalk ☐ akvasmart
AKVA GROUP
AKVA GROUP
4Q highlights
- EBITDA in 4Q hit by several items related to projects and accounting adjustments.
- Operating revenue for 2009 was 599 MNOK a reduction of 31% compared to 2008.
- The EBITDA for 2009 showed a loss of 11.5 MNOK.
- Sound order inflow in December and so far in 2010.
4Q highlights
- Changes to the organisation made in January 2010
- New temporary CFO appointed: Mr. Morten Nærland
- New GM for AKVA group North America appointed: Mr. Wade Kaskiw
AKVA GROUP
Agenda
Background & highlights
4Q 2009 Financial review
Outlook
Q & A
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AKVA GROUP
4Q Financials – P&L
akvasmart
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| P&L 2009 | 4Q | 4Q | Year | Year |
|---|---|---|---|---|
| (HNOK) | 2009 | 2008 | 2009 | 2008 |
| Operating revenues | 142.9 | 191.8 | 599.3 | 866.5 |
| Operating costs excl. depreciation | 158.9 | 201.5 | 610.9 | -813.8 |
| EBITDA | -16.1 | -9.7 | -11.5 | 52.7 |
| Depreciation & Amortisation | 7.2 | 9.3 | 30.9 | -29.5 |
| EBIT | -23.2 | -19.0 | -42.4 | 23.3 |
| Net financial items | -2.1 | -3.6 | -9.6 | -12.5 |
| EBT | -25.2 | -22.7 | -52.0 | 10.8 |
| Taxes | -3.8 | -4.8 | -12.9 | -5.2 |
| Net profit | -21.6 | -17.9 | -39.1 | 5.5 |
| Revenue growth | -25.5% | -30.8% | -7.0% | |
| EBITDA margin | -11.2% | -5.1% | -1.9% | 6.1% |
| EBIT margin | -16.3% | -9.9% | -7.1% | 2.7% |
| EPS (NOK) | -1.25 | -1.04 | -2.27 | 0.32 |
AKVA GROUP
4Q Financials – P&L comments
- Operating revenue in 4Q09 was 143 MNOK.
- Quarterly revenue reduced by 25% compared to 2008
-
Continued low revenues due to restrictive investment programs by the customers
-
The EBITDA result was -16.1 MNOK
- EBITDA in 4Q hit by several items related to projects and accounting adjustments.
- The total effect is about 18 MNOK,
- Whereof about 9 MNOK is related to accounting adjustments
- Re-evaluation of ongoing projects and some one-off items amount to about 9 MNOK
AKVA GROUP
Business areas - OPTECH
- EBITDA in 4Q affected by the majority of items related to projects and accounting adjustments.
AKVA GROUP
Business areas - INTECH
Earnings affected by low volumes in 4Q.
Some effects from special cost items.
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Market segments
- Norway dominating segment
- Other markets showing a positive development
- The "full stop" in the cod industry explains reduction (cod volume reduced by 45 MNOK)
- Growth in a number of regions continued.
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AKVA GROUP
Balance sheet
| Balance sheet (legal)
(MNOK) | Year
2009 | Year
2008 |
| --- | --- | --- |
| Intangible fixed assets | 243.9 | 251.7 |
| Tangible fixed assets | 39.1 | 41.5 |
| Long term financial assets | 1.1 | 2.5 |
| Fixed assets | 284.1 | 295.7 |
| Stock | 114.7 | 142.4 |
| Receivables | 161.3 | 171.1 |
| Cash and bank deposits | 56.5 | 47.9 |
| Current assets | 332.5 | 380.5 |
| Total assets | 616.5 | 676.2 |
| Shareholders' equity | 256.6 | 309.6 |
| Long term debt | 156.2 | 129.1 |
| Short term debt | 203.7 | 237.5 |
| Total liabilities | 359.9 | 366.6 |
| Total shareholders' equity and liabilities | 616.5 | 676.2 |
| Equity ratio | 41.6% | 45.8% |
| Net interest bearing debt | 141.9 | 149.6 |
| Net working capital | 120.0 | 171.7 |
Balance sheet items
Working Capital:
- Improvement seen in 4Q
- Continued focus on working capital
Net interest bearing debt (NIBD):
- A waiver extending through 2Q 2010 relating to the financial covenants was agreed with the company's main bank in 4Q
AKVA GROUP
Financial position
akvasmart™
Cash balance (MNOK)
- Equity:
-
Sound equity position
-
Cash Position:
- Available cash 76 MNOK
polarcirkel™
Cash flow statement
| Cash flow statement | 2009 | 2008 | 2009 | 2008 |
|---|---|---|---|---|
| (MNOK) | 4Q | 4Q | Total | Total |
| Net cash flow from operational activities | -2 830 | 8 530 | 32 656 | -15 504 |
| Net cash flow from investment activities | -6 407 | -12 597 | -24 095 | -90 936 |
| Net cash flow from financial activities | 14 119 | -4 982 | 7 | 56 279 |
| Net cash flow | 4 882 | -9 050 | 8 567 | -50 161 |
| Cash and cash equivalents beginning of period | 51 569 | 56 934 | 47 883 | 98 044 |
| Cash and cash equivalents end of period | 56 451 | 47 883 | 56 451 | 47 883 |
- A new 30 MNOK loan agreement with Innovation Norway was established in the 4Q.
- The agreement includes also an 18-month period without instalments on all existing long-term loans
- The reduction in instalments in the period will be about 30 MNOK.
- Net investments for 2009 amounted to 24.1 whereof 10.4 MNOK is capitalized R&D expenses in accordance with IFRS.
AKVA GROUP
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Order backlog and inflow per quarter (MNOK)
- Order backlog is reduced by 49 MNOK compared to the same time last year. Compared to 3Q this year the order backlog increased was approximately the same.
- A shift in order inflow was seen in December and so far in 2010.
Agenda
Background & highlights
3Q 2009 Financial review
Outlook
Q & A
AKVA GROUP
Outlook
Investment climate
- The market fundamentals of the aquaculture industry remain favourable.
- AKVA’s main customers experienced healthy earnings in 2009.
- Still the company experienced significant negative impact in the market in 2009 based on the global financial and economic crisis.
Future expectations
- Although negative impact from the financial crisis and a weak global economy during 2008 and 2009, the underlying prospects for the aquaculture industry remain favourable.
- The balance between supply and demand for Atlantic salmon, the product of AKVA group’s main customers, is expected to be favourable through 2010 and 2011. This indicating healthy prices.
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AKVA GROUP
Outlook
Market development
- A positive shift in order inflow was seen in December and so far in 2010.
- Market fundamentals developing well
- Closing of contracts are still slow but market conditions seem to be improving.
High underlying demand in Norwegian salmon market
- The Norwegian salmon industry is showing good profits at present and are positive for the outlook for the coming years.
- The prospect mass towards the Norwegian industry is at the moment at the highest level recorded.
- The prospect development is positive within all main product groups.
- Most of the sales prospects are for planned deliveries in 2010.
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AKVA GROUP
Outlook
Other species / markets
- The growth towards other species than salmon continue to expand according to strategic objectives.
- The prospect mass for deliveries to other species than salmon continue increasing
- The global financial has added uncertainty also to these markets, but there are signs that the uncertainty is now easing of.
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Future changes to reporting
Awareness to market cycles
Happy customers
- The announced restructuring plan is advancing according to plan, aiming at reduced operating expenses and improved cost flexibility.
- As a result of the restructuring implemented during 4Q 2009 the financial reporting will be adapted to the new organisation in future reporting.
- This implies that the division into the business areas INTECH and OPTECH will be ended. Further details of the new reporting format will be described in the 1Q 2010 report.
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AKVA GROUP
Agenda
Background & highlights
3Q 2009 Financial review
Outlook
Q & A
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AKVA GROUP
