05 AKVA group ASA - CMD 2016 presentations

Transcription

Welcome to
Capital Market Day - AKVA group ASA
Bryne, May 30th, 2016
Your Aquaculture Technology and Service Partner
AKVA group Capital Markets Day – Agenda
0930 – 0940
0940 – 1020
1020 – 1030
1030 – 1100
1100 - 1130
1130 – 1200
1200 - 1215
1215 – 1245
1245 – 1315
1315 - 1330
1330 / 1430
Welcome (CEO)
AKVA – status and main strategies going forward (CEO & CFO)
Break
Land based technologies – status and potentials for the salmon industry (GM Aquatec Solution)
Atlantis Subsea Farming – a solution to more exposed sites? (COO TnS)
Emerging market – AKVA’s potentials are outside salmon? (COO Export)
Break
Automation – a key to increased efficiency? (COO TnS & Technical Manager)
Rental – a key to grow recurring revenues (CFO)
Closing Q&A
Seafood lunch
2
AKVA – status and main strategies going forward
CEO Trond Williksen & CFO Eirik B Monsen
Agenda
1
Company
2
Market & trends
3
Financials
Agenda
1
Company
2
Market & trends
3
Financials
AKVA group – uniquely positioned for future growth
Leading technology
solutions and
service partner to
the global
aquaculture industry
Global presence subsidiaries in 8
countries
669 employees
Market cap of NOK
~1700m and net
debt of NOK 71m
Presence in all main farming regions
Map of activities
Revenue per region, Q1 2016
Export
13 %
Americas
10 %
Nordic
77 %
Nordic
Americas
Export
Revenue by product groups and species
By product groups – Q1 2016
By species – Q1 2016
Land
based
20 %
Non
Seafood
11 %
Other
Species
11 %
Software
9%



Cage
based
71 %
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
Salmon
78 %



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
8
AKVA group serves all salmon farmers in the World
Customer examples
Revenue per customer 2015
Customer 1
Customer 2
Customer 3
Other
Strategic priority to increase the proportion of OPEX based revenue
OPEX based vs CAPEX based revenue, Q1 2016
OPEX based
revenue
23 %
CAPEX based
revenue
77 %
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
•
AKVA Marine Services, our 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
•
We expect this market to grow in the coming years and we expect a consolidation of the players
•
The merger is expected to be finalized in Q2 2016
•
AKVA group ASA will own 65% of the new merged company – AKVA Marine Services AS
•
AKVA Marine Services will be a lean and effective player in the Farming Services industry
•
AKVA Marine Services will cover the farming services market in Rogaland and Hordaland
•
•
•
AKVA Marine Services AS entered into a letter of intent regarding a possible acquisition of
Techno Dive AS on May 10th, 2016
Techno Dive AS is a leading provider of safe and efficient subsea work. With worldwide
experience through countless projects
Techno Dive is considered to be a good fit with AKVA Marine Services and is expected to
strengthen its position in the Farming Services segment further
Signed LOI Merger to be completed in June 2016
AKVA Marine Services AS – our new Farming Services vehicle
AD Offshore
AS
YesMaritime AS
& Rogaland
Sjøtjenester AS
Merged to
AKVA
Marine
Services AS
? Could be a 100% owned subsidiary?
11
Agenda
1
Company
2
Market & trends
3
Financials
Strong demand for salmon - high and stable
salmon prices expected going forward
Annual harvest volumes of Atlantic salmon
Salmon price history and forecast, NOK/kg
Million
tonnes
2.5
52
2.0
38
39
2013
2014
48
42
+9%
1.5
26
1.0
0.5
0.0
1995
Source:
Notes:
2000
2005
Fish Pool, broker research reports, Arctic Securities
1) Actual prices and Fish Pool forwards
2010
2017e
Avg 19962012
2015
2016e1)
2017e1)
Aquaculture is becoming increasingly
technology-intensive
Farming capex, NOK/kg harvested 1)
Comparison of cage in 1980 to cage in 2014
+2.5x
4,0
1,6
2006
Source:
Notes:
2015
Salmon farmer annual reports
1) Based on reported farming capex and harvest volumes for Marine Harvest, Salmar, Cermaq, Lerøy, Grieg, NRS and Bakkafrost, 2015 figures are based on company guidance
Driving forces – salmon industry
LAND BASED
FARMING
EXPOSED SITES
FARMING
The exponential challenge of the coastal zone
SHORELINE
•
SALMON LICE
•
CONCENTRATION OF STAKEHOLDER INTEREST
•
WATER QUALITY
•
AVAILABLE SPACE FOR EXPANSION
•
ENVIRONMENTAL IMPACTS OF CONCENTRATED ACTIVITIES
Industry entering into a stagnant phase – with rapidly increasing costs
CAGR 12-15
50
+0,1 %
1 400 000
45
1 200 000
1 000 000
35
30
800 000
25
600 000
20
Production cost (NOK/kg)
M. Tons live weight (WFE)
40
15
400 000
10
200 000
5
-
0
1992
2015
Sales volume
Source: Deloitte, Directorate of fisheries
Industry phase development effects on technology demand
Industry stagnant phase
Cage farming development
EXPOSED
SHELTERED
OCEAN FARMING
SHORELINE
INCREMENTAL DEVELOPMENT:
•
ENLARGEMENT AND
INCREASED ROBUSTNESS
INCREMENTAL DEVELOPMENT:
•
BASED ON EXPERIENCES FROM AQUACULTURE
AND OFFSHORE INDUSTRY
Development of land based and closed containment technologies
LAND BASED TECHNOLOGY
CLOSED CONTAINMENT TECHNOLOGY AT SEA
SHORELINE
ATLANTIS SUBSEA FARMING AS
•
•
•
•
•
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
20
The growing global movement to participate in sustainable
aquaculture
Middle East:
Offshore – Saudi , Oman, Iran (Caspian)
Lakes/Dams – Iran
Land Based – UAE, Saudi, Oman, Iran
The progressive regions:
Salmon
Sea Bass & Sea Bream
Sub-Sahara Africa:
Offshore – Mauritius, Mozambique
Lakes/Dams – Lesotho, Ghana, SE Africa
Land Based – SE Africa
Other Species – emerging regions
Asia:
Offshore – Indonesia,
Malaysia, Japan, South
Korea, India, Sri Lanka
Lakes/Dams – China,
Vietnam
Land Based – China,
Thailand, Malaysia,
Indonesia, Vietnam
Continued growth expected – still in early stage of
development
Cycle development
Cycle
development
Growth drivers
•
The salmon industry is still the frontier.
Analysts expects limited volume growth
in salmon farming in 2014-2020. This
implies high salmon prices which is the
prime driver for growth in the technology
and service industry
•
Additional growth from increased
regulation, adding complexity and adding
need for compliance
•
Additional growth from other species
and regions
•
Additional growth from maturation of
the industry – the players are getting
more specialized
Oil
Aqua
Time
Agenda
1
Company
2
Market & trends
3
Financials
On track – with a good start of the year
First Quarter 2016 – Highlights
•
12,0 %
400
All business segments are performing well – best Q1 ever
350
10,1 %
10,0 %
A broad mix of products and services contribute financially – becoming a
stronger and more diversified Group
300
8,2 %
8,0 %
250
•
Mid term target of 10% EBITDA achieved over the last 12 months
•
Land based had a a good quarter – becoming an important part of AKVA
•
Farming Services – positioning ourselves for profitable growth
MNOK
•
200
150
6,0 %
393
325
4,0 %
100
2,0 %
50
•
•
Ending the quarter with the highest order backlog ever – the strong market
activity continues into Q2
40
27
0,0 %
0
2016 - Q1
2015 - Q1
Operating revenue
EBITDA
EBITDA %
Strong financial position
24
Improved performance year on year
Revenue
MNOK
CAGR
+21%
402
310
270
227
191
214
211
202
330
305
325
344
246
222
174
301
393
355
180
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
25
EBITDA
MNOK
41
10
10
12
10
3
27
24
20
40
34
32
22
41
27
13
8
9
-4
26
EBITDA in %
10,4 %
10,2 %
9,7 %
4,5 %
4,7 %
4,7 %
4,2 %
3,5 %
3Q13
4Q13
11,4 %
8,2 %
8,0 %
7,5 %
6,2 %
10,2 %
10,1 %
7,9 %
4,4 %
1,7 %
-2,5 %
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
27
Cage Based Technologies
CBT (Revenue & EBITDA %)
350
30%
12,0 %
2,7 %
300
6,2 %
5,8 %
10,9 %
9,3 %
5,1 %
3,6 %
2,0 %
8,5 %
11,7 %
4,4 %
0,3 %
8,9 %
-7,0 %
10,4 %
10,5 %
4,6 %
10,2 %
10%
54
-10%
31
250
39
32
62
200
39
150
67
20
44
24
76
100
75
31
24
-50%
44
-70%
41
-90%
39
117
37
40
43
19
155
120
160
208
195
185
83
58
47
68
103
31
50
84
85
-30%
66
64
47
22
12
59
33
54
20
50
54
37
141
160
156
-110%
136
108
82
55
-130%
58
45
0
-150%
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
Nordic
3Q13
4Q13
Americas
1Q14
Export
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
EBITDA %
28
Software
Software (Revenue & EBITDA %)
27,7 %
45
14,4 %
11,9 %
16,3 %
26,1 %
19,2 %
18,8 %
16,9 %
11,4 %
7,6 %
4,7 %
40
16,5 %
21,7 %
12,9 %
14,1 %
14,0 %
22,4 %
15,4 %
30%
17,5 %
10%
1
3
35
30
25
0
3
0
0
4
0
4
0
20
5
0
0
4
0
3
0
0
5
4
0
1
4
4
0
5
5
1
1
5
6
-30%
7
-50%
1
5
-70%
34
15
26
10
21
25
20
17
20
-10%
1
6
22
1
3
19
19
22
22
20
25
24
32
-90%
24
-110%
20
15
5
-130%
0
-150%
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
Nordic
3Q13
4Q13
Americas
1Q14
Export
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
EBITDA %
29
Land Based Technologies
LBT (Revenue & EBITDA %)
100
30%
90
8,4 %
4,1 %
-2,4 %
80
-0,2 %
-6,2 %
-1,1 %
7,0 %
-1,9 %
9,8 %
6,3 %
10%
1
-10%
4
-17,2 %
-18,5 %
60
6,1 %
1,2 %
-10,2 %
-14,8 %
70
5,9 %
-33,3 %
-30%
-41,6 %
-50%
2
50
6
1
2
40
2
1
4
10
4
1
15
7
3
4
10
8
8
1Q12
2Q12
3Q12
1
14
14
4Q12
1Q13
1
24
-90%
54
1
0
79
1
3
30
20
-70%
82
36
41
46
35
45
-110%
34
31
-130%
18
0
-150%
3Q11
4Q11
2Q13
Nordic
3Q13
4Q13
Americas
1Q14
Export
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
EBITDA %
30
Group financial profile – Strong & improved YoY
MNOK
Available cash
230
226
183
113
84
79
95
58
3Q11
4Q11
1Q12
2Q12
3Q12
86
70
63
4Q12
1Q13
2Q13
153
144
1Q14
2Q14
144
147
157
4Q14
1Q15
2Q15
160
96
68
3Q13
4Q13
3Q14
3Q15
4Q15
1Q16
Working capital
200
MN
MNOK
OK
MNOK
186
25 %
182
180
162
160
21 %
162
156
153
20 %
19 %
140
18 %
19 %
162
20 %
19 %
136
137
129
17 %
120
MNOK
147
126
15 %
100
100
12 % 11,5 %
80
127
126
116,0
106
16 %
20 %
145
12 %
10,1 %
60
10,8 % 10,6 %
64
10 %
9,1 % 8,8 %
8%
40
5%
4,3 %
20
1Q16
4Q15
3Q15
2Q15
1Q15
4Q14
3Q14
2Q14
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
2Q12
1Q12
4Q11
0%
3Q11
0
ROCE
17,9 %
15,4 %
15,3 %
14,2 %
14,0 %
14,7 %
12,4 %
8,4 %
8,4 %
1Q14
2Q14
6,2 %
3,7 %
3,4 %
2,8 %
3,1 %
3Q11
1,9 %
0,7 %
4Q11
1Q12
2Q12
3Q12
-0,8 %
-0,5 %
4Q12
1Q13
0,6 %
2Q13
3Q13
4Q13
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
Equity
500
60%
52 %
450
400
44 %
45 %
46 %
50 %
49 %
48 %
47 %
47 %
44 %
44 %
46 %
50%
45 %
43 %
43 %
41 %
350
38 %
40 %
39 %
40%
MNOK
300
250
30%
200
20%
150
100
10%
50
326,60
324
342
347
346
325
338
342
342
339
347
365
375
389
403
417
443
428
435
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
0
0%
Total Equity

Equity %
Dividend payments of 25.7 MNOK in Q4 2015 and 25.8 MNOK in Q4 2014
34
Net debt/EBITDA
150
5,0
4,3
3,7
2,5
4,0
3,2
2,0
1,8
2,4
3,0
2,4
1,7
120
2,0
1,6
1,3
1,0
0,9
0,4
0,8
1,0
0,8
0,7
1,0
0,5
-
90
- 1,0
- 2,0
- 3,0
136
60
126
125
122
- 4,0
108
107
91
79
94
87
75
- 5,0
98
92
89
82
70
- 6,0
76
71
30
- 7,0
44
- 8,0
- 9,0
-
- 10,0
Q3 - 2011
Q4 - 2011
Q1 - 2012
Q2 - 2012
Q3 - 2012
Q4 - 2012
Q1 - 2013
Q2 - 2013
Q3 - 2013
Net interest bearing debt
Q4 - 2013
Q1 - 2014
Q2 - 2014
Q3 - 2014
Q4 - 2014
Q1 - 2015
Q2 - 2015
Q3 - 2015
Q4 - 2015
Q1 - 2016
NIBD/EBITDA(12months rolling)
35
CAPEX
35 000
20%
10%
6%
30 000
4%
2%
3%
10%
5%
3%
4%
5%
5%
6%
4%
3%
3%
3%
4%
6%
4%
12 295
10%
0%
25 000
-10%
20 000
7 660
Rental Capex*
-20%
15 000
11 960
5 783
5 613
Intangible
Capex*
-30%
8 900
10 000
18 633
17 800
2 723
-40%
3 047
2 096
11 800
5 000
8 500
5 000
0
10 000
7 200
6 300
10 000
11 300
8 500
2 010
11 017
10 982
9 133
6 175
7 041
8 597
9 841
Tangible
capex
-50%
5 128
-60%
Q3 - 2011 Q4 - 2011 Q1 - 2012 Q2 - 2012 Q3 - 2012 Q4 - 2012 Q1 - 2013 Q2 - 2013 Q3 - 2013 Q4 - 2013 Q1 - 2014 Q2 - 2014 Q3 - 2014 Q4 - 2014 Q1 - 2015 Q2 - 2015 Q3 - 2015 Q4 - 2015 Q1 - 2016 *(external split from Q1 and
onwards)
36
Growth in order backlog continues
MNOK
Order Inflow
467
146
186
205
190
149
271
243
243
441
367
327
279
505
460
348
350
201
151
37
Growth in order backlog continues
Order Backlog
Land Based
414
Cage Based and
Software
MNOK
283
643
520
452
260
255
275
253
306
200
327
299
504
478
547
649
493
349
208

The large Land based contract of ~ MNOK 186 (MDKK 150) announced in a stock notice on April 4th, 2016 is not
included in the Q1 2016 order backlog. It will be included in the Q2 order backlog in the next quarterly report
38
Largest shareholders
20 largest shareholders
No of shares
13 203 105
3 900 000
965 820
489 813
489 417
484 300
436 173
370 447
309 841
300 000
241 576
238 692
196 300
181 000
173 550
140 000
130 280
130 000
125 645
114 752
22 620 711
3 213 592
25 834 303
%
51,1 %
15,1 %
3,7 %
1,9 %
1,9 %
1,9 %
1,7 %
1,4 %
1,2 %
1,2 %
0,9 %
0,9 %
0,8 %
0,7 %
0,7 %
0,5 %
0,5 %
0,5 %
0,5 %
0,4 %
87,6 %
12,4 %
100,0 %
Account name
EGERSUND GROUP AS
WHEATSHEAF INVESTMEN ATT: ANTHONY JAMES
VERDIPAPIRFONDET ALF
STATOIL PENSJON C/O JP MORGAN CHASE
EIKA NORGE
MP PENSJON PK
SKANDINAVISKA ENSKIL SEB S.A. CLIENT ASSE
VERDIPAPIRFONDET DNB
NORDEA NORDIC SMALL
MERTOUN CAPITAL AS
VPF NORDEA KAPITAL C/O JPMORGAN EUROPE
OLE MOLAUG EIENDOM A
DAHLE BJØRN
VPF NORDEA AVKASTNIN C/O JPMORGAN EUROPE
ROGALAND SJØ AS Ja n N. Bri ngeda l
VERDIPAPIRFONDET EIK VPF
ARCTIC FUNDS PLC BNY MELLON SA/NV
SIX SIS AG ACCOUNT 2
STATOIL FORSIKRING A C/O JP MORGAN CHASE
MOLAUG OLE
20 largest shareholders
Other
Total number of shares as per 27.05.2016
Share development
Type
Nomi nee
Nomi nee
Citizenship
NOR
GBR
NOR
NOR
NOR
NOR
LUX
NOR
FIN
NOR
NOR
NOR
NOR
NOR
NOR
NOR
IRL
CHE
NOR
NOR
19 986 669
4 403 511
560 710
227 873
217 990
437 550
%
77,4 %
17,0 %
2,2 %
0,9 %
0,8 %
1,7 %
Origin
No of shareholders
Norway
Great Britain
Luxembourg
USA
Switzerland
Other
902
29
4
12
6
82
Total number of shareholders: 1035 - from 21 different countries
Trading volume
80
70
60
50
40
30
20
10
0
60 000 000
50 000 000
40 000 000
30 000 000
20 000 000
10 000 000
0
jun. 15
jul. 15
aug. 15 sep. 15 okt. 15 nov. 15 des. 15
jan. 16
feb. 16 mar. 16 apr. 16 mai. 16
Last 5 years
Trading volume
Share price
80
180 000 000
150 000 000
60
Origin of shareholders, 5 largest countries
No of shares
Last
12 months
Share price
120 000 000
40
90 000 000
60 000 000
20
30 000 000
0
0
2012
2013
2014
2015
2016
Subscribe to Oslo Stock Exchange Releases from AKVA by email on:
http://ir.akvagroup.com/investor-relations/subscribe
39
AKVA group highlights
•
Undisputed #1 supplier of technology and services to the
aquaculture sector
•
Salmon farming is driven by high demand, high prices and
increased technological sophistication
•
New salmon farming growth to come from land-based and
more exposed locations with higher technological requirements
•
AKVA group is well positioned for continued growth and
margin improvement – active dividend policy
Land based technologies – Status and potentials for the salmon industry going forward
Morten Nielsen, General Manager Aquatec Solutions A/S
Agenda
1
Facts about the land based technology
2
AKVA’s activities in land based technologies
3
Potentials for the salmon industry
Agenda
1
2
3
Land based technologies – in definition
Technologies for land based production of aquatic organisms in aquaculture with application
for a range of spices, freshwater and saltwater
SHORELINE
Land based technologies – how the different applications are defined
In land based aquaculture, the technology definitions are primary related to:
– type of water (freshwater and saltwater)
– new water required to per 1 kg of feed
Liter water per kg of feed
45 000
Liter of added water required per kg of feed
40 000
35 000
Liter water per kg
of feed
30 000
25 000
Flow through
40.000
Re-use
10.000
20 000
15 000
10 000
5 000
0
Flow trough
Re-use
Basic
recirculation
Basic recirculation
500
Zero water change
50
Zero water
change
System for all between flow trough to zero water change are currently in operation for different species
5
Land based technologies – flow through to zero water change
Flow trough
100 % in
100 % out
6
Basic recirculation
1 % out
100 % in
1 % in
100 % back
7
Zero Water Change
0,1 % out
100 % in
0,1 % in
100 % back
8
Agenda
1
2
3
Land based technologies – AKVA’s business units and brands
AKVA group Denmark A/S
• Danish company based in Vejle,
acquired by AKVA in 2015
• 30 employees
• Specialized in RAS systems for
salmonids
• Primarily larger projects deliveries
of complete solutions to the
salmon industry
• Extensive reference lists of projects
in the salmon industry in Norway
Faroe Islands, Scotland, Chile and
Tasmania
10
• Danish company based in
Copenhagen and Frederica,
acquired by AKVA in 2006
• 50 employees
• RAS systems for salmonids and
other species in different
geographies. Freshwater and
saltwater
• Projects deliveries of complete
solutions and services
• Extensive reference lists of projects
in the salmon industry as well as
other species in other geographies
• Norwegian company based in Sømna
and Brønnøysund, acquired by AKVA in
2013
• 44 employees
• Flow through systems, tanks, piping,
special solutions for land based
salmon facilities. Leading provider of
cleaner fish facilities in Norway
• Projects deliveries of complete
solutions and services, including on
site installations
• Extensive reference lists of projects in
the salmon industry in Norway and
some projects in other geographies
Land based technologies – business volumes and relative importance
Land
based
20 %
Facts about land based technologies:
Software
9%



Cage
based
71 %
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
•
Land based technologies constituted
20% of all revenues and 40% of order
backlog in AKVA in Q1 2016
•
The business segment is expected to
grow in importance in the years to come
Agenda
1
2
3
Driving forces – salmon industry
LAND BASED
FARMING
EXPOSED SITES
FARMING
The exponential challenge of the coastal zone
SHORELINE
•
SALMON LICE
•
CONCENTRATION OF STAKEHOLDER INTEREST
•
WATER QUALITY
•
AVAILABLE SPACE FOR EXPANSION
•
ENVIRONMENTAL IMPACTS OF CONCENTRATED ACTIVITIES
Other paradigms appearing
CLOSED CONTAINMENT
LAND BASED
OPEN CONTAINMENT
CAGE BASED
The “traditional” production cycle:
A
0 – 100 g
Open pen cage at sea 100 – 5000g
The “post smolt” production cycle:
B
0 – 100 g
100 – 1000 g
Open pen cage at sea 1000 – 5000g
The “integrated” production cycle:
C
0 – 5000 g
Land based technologies – drivers for development in the salmon industry
•
The salmon industry has traditional been the driver for development of RAS systems for industrial use
–
–
–
•
limited water resources
saving in heating cost
search for expansion possibilities
Experiences gained after operating RAS systems
for smolt till now
–
–
–
–
–
–
–
stable water quality with control of all parameters
less use of chemicals to maintain water quality
improved smolt quality
less mortality
faster production cycles
better capacity utilization
efficiencies and cost gains
15
Development in in investment and feeding in land based production of salmon smolt
Aquatec Solutions selected references
Investment per smolt in DKR
Kg feed per day in ton
100
100
90
80
80
70
60
Investment
per smolt in
Dkr.
40
60
kg feed per
day in ton
50
40
30
20
20
10
0
2006
MH Laxa
2012
MH Lochailort
2018
Bakkafrost Strond
16
0
2006
MH Laxa
2012
MH Lochailort
2018
Bakkafrost
Strond
Nekst
Land based technologies – experiences from new facilities
Examples published with permission from Hiddenfjord on Faroe Islands
Smolt average weight Faroe Island 2006-2015
400
350
300
Hiddenfjord
Gram
250
Aðrir
200
150
100
50
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
14000
Smolt stk utsett x1000
Tons slakt
12000
10000
8000
Harvest (1000 tons)
6000
4000
2000
Approxiately same numbers of smolt to sea
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Vøkstur í gram pr dag á sjónum
20
18
16
14
12
10
8
6
4
2
0
Data from Faroe Island
0
100
200
300
400
500
600
700
800
Smoltvekt gram
Smolt weight in grams
100
200
300
400
500
600
Growth per day in grams
11,0
12,0
13,2
14,3
15,5
16,6
Time to 6 Kgs.
17,6
15,8
14,2
12,8
11,6
10,7
2009/10
Land
based
Smolt 80
gram
5,63 kr/stk
68,66
kr/kg
In sea
413
gram
49,04
kr/kg
On land
419 gram
2014/15
Land
based
19,95
kr/stk
47,61
kr/kg
Land based technologies – potentials for suppliers in the salmon industry
Estimated industry investments with increasing smolt size – Norwegian market
25 000
Investments (mNOK)
20 000
15 000
Total investments
(mNOK)
10 000
Technology
investments (mNOK)
5 000
100
200
400
600
Average smolt size (g)
800
1 000
Assumptions:
300 mill smolt per year
80 mNOK investment per 1000
tonnes.
Land based technologies – potentials for suppliers in the salmon industry
………… and then potentials for land based technologies in other markets and species
comes in addition
22
Q&A
23
Atlantis Subsea Farming
Capital market day, May 30th 2016
Inge Forseth, AKVA group ASA
1
A new generation submerged fish farm
Project history
Aug
2014
Status
•Workshops
•Status, experiences from submersible cages
• RnD and publications in important areas, from CREATE (SFI), other RnD projects
RnD, organising • Involvement of RnD institutes
the project
• Organising the project, contracts
Testing in
Flumetank
Application
«Innovation
licences»
• Planning (pilot construction 1:12,5)
• Experiments in the Flumetank in Hirtshals, SINTEF Fisheries and Aquaculture
• Analysing data, report
• Founding of Atlantis Subsea Farming AS (AKVA group, Sinkaberg Hansen, Egersund Net)
• ASF applied for six Innovation licences
• New test in Hirtshals
April 2016
3
Innovation licences
Innovation licenses can be assigned to projects that involve significant
innovation and substantial investment. It aims to facilitate the
development of technology that can help to solve one or more of the
environmental- and land challenges that aquaculture is facing, such as
construction of prototypes and test equipment, industrial design,
equipment installation and full-scale trial production.
Objective: Develop technology and operational solutions for
submersible large scale fish farms
• Open up new areas for aquaculture
• Avoid sealice
• Good fish welfare and growth in controlled
environment
• Less risks for escapees
• Cost effective
• New products and new markets for the technology
providers
• Circumference > 160 m, about 200 000 fish
5
Risk management
Submerge and raise the cage – safe and remote
Underwater feeding
Fish health operations
Daily operations (dead fish removal,
surveillance, cleaning, etc)
Air to the salmon
Artificial air space, underwater airspace
This is not easy!
Experiments in the Flumetank
Model 1:12,5
Learning arena
7
Flumetank
• Currents (0,5 m/sec)
and waves (2,5 Hs)
• Measurements of
strains by load cells,
videos etc.
Way forward
2014/2015
Experiences
RnD
Organising the
project
2016
Experiments in
Hirtshals
Apply for Innvoation
Licences
Founding of Atlantis
Subsea Farming
2017-2018-2019-2020
1. Full scale testing
on excisting site
without fish: Cage
with AKVA Connect
2. Airdome,
subfeeding: More
pilot testing needed
Full scale 2:
Full scale 3
•Exposed site
•Without fish
•Exposed site
•With fish from 1 kg
to harvesting
•3 generations
Perspective no 1: New areas, less sealice
Perspective no 2: Growth in value cration
within a cluster
Perspective no 3: The international markets
for technology and sevices
Global Aquaculture
Production
SALMON. TROUT & SMOLTS
3,57%
OTHER AQUACULTURE
96%
SALMON. TROUT & SMOLTS
OTHER AQUACULTURE
Inn med film
Emerging markets – AKVA’s potentials outside salmon
COO Export Trond Severinsen
Big fish farming
plans in nearly
every country
•
•
•
Most countries with
suitable natural
resources now have a
strategy to build an
Some regions can easily
match salmon
production
Sustainability is a key
factor for success
(Environmentally, Socially and
Financially)
•
Most look to Norway
and AKVA for know-how
and proven technology
2 30.05.2016
Norwegian salmon technology and
competence transfer to emerging markets
• Norway = Over 40 years of industrial
salmon farming
• Norway is the main technology driver in
fish farming technology development
worldwide
• Norway has unique competence, proven
fish farming concepts and a good
regulatory framework – all emerging
markets need this
• AKVA group transfers this competence and
technology to emerging markets
Big worldwide potential – but challenging
emerging markets
•
AKVA has supplied technology to more than 50 countries in 40
years
•
Approximately 800 MNOK sales in emerging markets in last 5 years
•
Proven and certified technology – adapted to emerging market
needs
•
•
Main strategy is to be a one-stop-shop of complete fish farms
Managing challenges and complexity of emerging markets – AKVA
group has unique competence and experience today:
– Senior team (sales and project management) with extensive
international experience, market and cultural knowledge
– Professional legal contracts
– International Trade & Finance
– Site surveys, risk assessments and project management
– Health and Safety focus
– Code of Conduct / Global Compact 10
– Anti-Corruption Program
Emerging Market - Sales Regions (cage farming)
Technology is important – but not enough!
MANAGEMENT
FINANCING
MARKET
SUCCESS
CRITERIA
REGULATORY
FRAMEWORK
COMPETENCE
TECHNOLOGY
THIS IS THE
BIGGEST
SHORTFALL IN ALL
EMERGING
MARKETS
Salmon farm in Russia
Feed Barges to Saudi Arabia (Red Sea)
National Prawn Co. – Saudi Arabia
Feed Barge to Tasmania
Feed Barge to Australia
Installing 1 of 8 offshore farms in Tunisia
Offshore cage farm for Sea Bass and Sea Bream in Tunisia
Training course for Tunisian customers
Cage farm for Rainbow Trout in China (Tibet region – Elev. 2600m)
Cage farm for Rainbow Trout in China (Tibet region – Elev. 2600m)
Norway is not the only cold place in the world… (Tibet mountain lake in China)
Large gap between old and new technology
(Not AKVA technology)
Learning fish farming the hard way…
(not AKVA technology)
(Not AKVA Learning
technology)fish farming the hard way…
Hydro dam cage farm for Rainbow Trout in Iran
AKVA group’s first large scale offshore cage farm in Iran (Persian Gulf)
Mooring operations in Iran (Persian Gulf)
Tilapia farms in Lake Kariba, Zambia
Farms in emerging markets need same technology concepts as salmon farming
Tilapia farm in lake in India
Tilapia farm in Lake Victoria, Uganda
Tilapia farm in Lake Victoria, Uganda (not AKVA technology)
Fish farm in China
Pangasius farming in ponds in Vietnam (Mekong Delta)
Tilapia juvenile farm at Lake Victoria, Uganda
Tilapia juvenile pond farm in Uganda
Tropical storm paths – last 50 years
«No farm zone?»
«No farm zone?»
«No farm zone?»
Offshore Yellowtail farming in submergible cages in Japan
Atlantis Subsea Farming – This can open large new emerging markets (open sea farming)
Automation – a key to increased efficiency?
Inge Forseth, COO– TnS and Tore Obrestad, Technical Manager, Nordic
Fish farming
ON LAND
SHELTERED
Need of a wide range of products
EXPOSED
OCEAN FARMING
The fish farm
The fish cage
•
•
Biology
– 200.000 fish
– 100g  5.000g
– Biomass > 1.000 ton
– Production of 1.100 ton
– Total feed = 1.265 ton (FCR 1,15)
Economy
– Total value 71,5MNOK (65,-/kg)
– Result 38,5MNOK
(35,-/kg in margin)
– Feed cost 14,55MNOK
– Improve the utilizing of feed by 2% 
• - 2% in saved feed cost by 290kNOK/cage
• + 2% more fish = 1.430kNOK/cage sales price
• + 2% better result =770kNOK/cage
The farm center – feeding barge
• Feed storage (models 130t to 850t)
• Fully equipped
–
–
–
–
–
Power supply from generator/land
Feeding system
Control room
Ensilage system (dead fish treatment system)
Living area
Local control room
Fish farmers specialist on:
Feeding
- Control of feeding system and camera
Environment
- Sensors – status and actions
•
Marine Harvest indre Skjervøy
– One person can control feeding of 24 pcs 160/200m cage,
a maximum of 160 ton feed/day
Remote control room
• Nordlaks AS
– >20 sites
– 70.000 ton yearly production
– 4 persons feeding all from this room!
AKVAconnect – a key to increased efficiency
ON LAND
SHELTERED
SHORELINE
EXPOSED
OCEAN FARMING
AKVAconnect – Typical setup
Rental – a key to grow recurring revenues
CMD Bryne, 30 May 2016
CFO Eirik Børve Monsen
Agenda
1
What is rental in AKVA?
2
Rental for the customer
3
Rental for AKVA
Agenda
1
2
3
Rental for AKVA
What is Rental?
• It is not leasing
• It is not delayed payment
• It is not finance of capex in any way
• Customer never owns the product
•
•
•
•
It is an end result for the customer
It is fully maintained with no hidden costs
It is installed at no extra cost
It is redeployed within reason at no cost
Rental Model – Type of Rental Contracts
• We supply a fully inclusive rental contract
• Price paid includes the following
–
–
–
–
–
–
Installation
Spare Parts
Travel
Accommodation
Expenses
24/7 support
Products in AKVA group for rent
• Our rental concept is offered on the following products:
–
–
–
–
–
–
–
–
–
–
–
–
Complete feeding systems
Feeding systems accessories (rotor spreader, etc)
Complete camera systems
Control room for remote control of sites
Environmental sensors
Infrastructure
Mort collecting systems
Bio AKVA
Lights for cages
Net cleaning systems
Photofish
AKVA SubSea Feeder
AKVA group have more than 40
years of experience in the aqua
culture industry. Our goal is that
you as our customer and
partner shall succeed
Possible future products for rental?
•
•
•
•
Barges?
Workboats?
Cages and nets?
Generator
systems?
• Other
Rental vs purchase – the difference
• When customer purchases: They are buying a product
• When a customer rents: They are paying for an end result
Camera - This is what you buy
Camera - This is what you are renting
Agenda
1
2
3
Rental for AKVA
AKVA group rental for the customer
• Rental enables the customer to do larger equipment installation on the OPEX
• Local management can guarantee working product on site (Outsourcing / SLA)
– No excuses!!
• Makes it easy to do business
– Clear pricing
– Easy to add new sites etc
• Guarantee for low downtime, due to the best service apparatus in the market
• Extra products available at any time
Clear pricing
• Gives a clear cost structure
– No hidden costs
– Fixed monthly fee for the full rental period
– Same pricing for everybody
– Separate price list, updated quarterly
A rental agreement includes
–
–
–
–
–
–
–
–
Freight of all related equipment to the sight
Installation and start up
Training – how to use the system
Service and maintenance – to secure low
down time and optimal configuration
Repair and change of default products
without extra cost
Fixed monthly price during the whole rental
period
No start up fee
Free support
Installation
of rented
product
Maintenance
Service
Training
Support
Rental - duration
The customer decide
the duration of the
rental period, i.e. it is
customized for each
customer. Duration
between 2  8 years
Case study: Camera rental to customer X
• Why does customer x chose rental?
– Release CAPEX by renting cameras (booked as OPEX)
– A good service agreement (SLA): 24/7 support and reparation
and change of default equipment without extra cost
– Tailor-made camera solution for the specific site for the next
4 years with regards of type of camera, number of screens in
the control room
– Option to change / modify the camera solution after 4 years,
access to new technology earlier than if owning the
equipment. Usually the customer use their own equipment
until it is broken/old
Case study: Camera rental to customer X
4 years rental of a camera
system for 8 cages:
•
•
•
•
•
•
Video base for barge, display on 4
screens
Smart hawk surveillance camera
IP CAP surface camera
Smart eye 360 Twin underwater
camera
HT dual winch
All brackets, cables, etc tailor made for
this site
Price for system full installed,
configured and fully maintained
over the whole rental period:
Monthly fee for total system NOK 38.000
Monthly fee for each cage NOK 4.750
Example: How does AKVA group rental work?
Example: Camera
system - 4 years
agreement
Camera system 4 years
Request
End of life
cycle
Accept
Start of
new life
cycle
End of
life cycle
48 monthly installments
4 years
Quote
Installation
Contract
Maintenance
Installment and
re-installment
of equipment
between life
cycles
Re-installment
end of contract
Value proposition for the customer
A rental agreement gives
you the opportunity to
focus on your core
business (the biomass),
while AKVA group ensure
optimal performance
from the equipment
Agenda
1
2
3
Rental for AKVA
AKVA rental model – what is required from us?
• 24/ 7 follow up included in the SLA - requires presence
• Skills – requires good aquaculture knowledge
Our service stations in Norway
Alta
Tromsø
Sortland
Mo i Rana
Sandnessjøen
Rørvik/Namsos
AKVA group have the industries largest services apparatus located
along the Norwegian coastline and in all other main salmon
producing regions in the world. Customer focus and aquaculture
knowledge are two of our core values
Trondheim
Hitra
Ålesund
Bergen
Bryne
AKVA group is the leading supplier
of technology and services to the
Rental – the concept
•
AKVA group’s rental model is based on our experience in the Scottish market over many years
–
In UK many of our customers prefer to rent (vs traditional CAPEX sale)
•
Rental gives good cash flow for AKVA group
•
Generate CAPEX and increased interest bearing loan in our balance sheet
•
Generate depreciation and interest cost in our P&L
•
Increased duration of our order backlog
•
We have separate funding facility with our bank for growing this business
Sale
Financial Lease
Rental
Finance
partner
AKVA group ASA
AKVA group Services AS
Customer
Rental - Benefits to AKVA group
Steady recurring revenue – OPEX based revenue
Better relationship with customers - less conflict points
Sustainable model for delivering high level of service – gives
us an efficient utilization of overall service resources
Rental Model – key to success
• All inclusive model has been a key component
• Do not believe we would have had same success with a “rent”
product and pay for service model
• Big important factor in making the rental a win/win
– Planned monthly amount for customer – no surprises
– Recurring stable income for us
Rental - Challenges and opportunities
Educate and mature the Norwegian customers, hence Norwegians
generally like to own their assets
Will be solved through consistent high quality rental deliveries
in Norway over time – building stone by stone
We believe this is a win-win game for the customer and us

05 AKVA group ASA - CMD 2016 presentations

Transcription

Similar documents

Program of meetings for Cryogenetics AS

WHOLEY NORWEGIAN SALMON FILLETS 1

2009 West Virginia Statistics

on your alamo rentals.

Gravlax Kit Guide and Information

ICAR-CIFA Vision 2050 - Indian Council of Agricultural Research

Water quality requirements for culture of the green sea urchin

Report of the Working Group on Environmental Interactions of

Northeast Economic Engine: Agriculture, Forest Products and

REC Section - Ravalli Electric