AKVA group
October 4th 2018
Hallvard Muri, CEO
Technology for sustainable biology
Agenda
Company overview
Financials
Market drivers and focus areas
Outlook Iceland
Technology for sustainable biology
Agenda
Company overview
Financials
Market drivers and focus areas
Outlook Iceland
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. 1450 employees
Technology for sustainable biology
Complete solutions
Cage Based Technology Land Based Technology Software
Technology for sustainable biology
Cage Based Technology
Plastic Cages
Steel Cages
Feed Barges
Feed Systems
Mooring Systems
Nets
Camera Systems
Underwater Lights
ROV Net Cleaner
Environmental Sensors
Mort Collector
Work Boats
AKVAconnectControl Software
Technology for sustainable biology
Salmon farm in Norway
Technology for sustainable biology
Salmon farm in Chile
Technology for sustainable biology
Land Based Technology
Fish Tanks
RAS (Recirculation Aquaculture Systems)
Central Feed System
Biofilter Oxygen Cones
Nitrogen De-Gasser
Particle Filter
Technology for sustainable biology
Bakkafrost Strond, Faroe Island
Technology for sustainable biology
Sisomar Hall G, Norway
Technology for sustainable biology
Bedre bilder?
Tytlandsvik Aqua, Norway
Technology for sustainable biology
Marine Harvest, Nordheim Norway
Technology for sustainable biology
Midt-Norsk Havbruk, Norway
Technology for sustainable biology
Software
Fishtalk
AKVAconnect
Support
Technology for sustainable biology
Order intake 2017AKVA group’s geographical regions
Where do we deliver?
45%(57 %)
21 %(24 %)
15 %(9 %)
19 %(10 %)
Nordic CBT&SW Nordic LBT EME Americas
Nordic
Americas
Export
AKVA group
Agents / Distributors
Technology for sustainable biology
Agenda
Company overview
Financials
Market drivers and focus areas
Outlook Iceland
Technology for sustainable biology
EBITDA (MNOK) Order intake (MNOK)
Revenues, Order intake and EBITDA
Revenues (MNOK)
AKVA group AKVA group
149 160 195 181 206
194 205258
170337
575
881972 1 251
1 545
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
919
2013 20152014
1 425
2016 2017
1 246
1 603
2 088
+23%
AKVA group
149 216 190 182382163
256 215 197
472821
7591 165
1 573
1 617
0
500
1 000
1 500
2 000
2 500
2013 2014
1 132
2015 2016 2017
1 231
1 570
1 952
2 471
+22%
12 20 16 1815
30 2635
76
85 147
196
0
20
40
60
80
100
120
140
160
180
200
220
240
2015
8 3
20142013 2016*
6
135
2017*
47
103
169
240
+50%
Nordic Americas EMEAmericasNordic EME Nordic EMEAmericas*Excluding one off in 2016
AKVA group
Technology for sustainable biology
51,6 %(54,5%)
17,7 %(19,4%)
22,3 %(17,2%)
0,1 %(0,1%) 8,3 %
(8,8%)
Cage Based Tech S&AS Cage Based Land Based Tech
S&AS Land Based Software
Revenue by product group and species
84,6 %(81,7%)
9,7 %(9,9%)
5,7 %(8,4 %)
Salmon Non seafood Other species
By product groups – Q4 2017 By species – Q4 2017
Technology for sustainable biology
Agenda
Company overview
Financials
Market drivers and focus areas
Outlook Iceland
Technology for sustainable biology
Driving forces – salmon industry
SHORELINE
Challenge of nearshore farming
• SALMON LICE
• CONCENTRATION OF STAKEHOLDER INTEREST
• WATER QUALITY
• AVAILABLE SPACE FOR EXPANSION
• ENVIRONMENTAL IMPACTS OF CONCENTRATED
ACTIVITIES
EXPOSED SITES FARMING
LAND BASEDFARMING
OCEANFARMING
Technology for sustainable biology
Underwater feeding
Fish health operations
Daily operations (dead fish removal, surveillance, cleaning, etc)
Risk management
Air to the salmonArtificial air space
Submerge and raise the cage – safe and remote
Technology for sustainable biology
Paradigm shift in the salmon industry
0 – 100 g
0 – 100 g
The “traditional” production cycle:
The “post smolt” production cycle:
0 – 5000 g
The “integrated” production cycle:
CLOSED CONTAINMENT LAND BASED
OPEN CONTAINMENTCAGE BASED
A
B
C
100 – 1000 g
Open pen cage at sea 100 – 5000g
Open pen cage at sea 1000 – 5000g
Technology for sustainable biology
The industry is pursuing big smolt
Less exposure to environmental factors such as
storms and parasites
Faster production cyclesMore robust smolt
Potential larger production in sea Potential for better capacity utilization within the
maximum allowed biomass
Potential for reduced production cost (e.g. lower
treatment costs)
Technology for sustainable biology
Land based is cost-effective for production of big smolt
Smolt 80 g
Smolt 419 g
2009/2010
2014/2015
5,63 kr/stk 68,66 kr/kg
419 g19,95 kr/stk47,61 kr/kg
413 g49,04 kr/kg
Source: Hiddenfjord , Faroe Islands
Technology for sustainable biology
High land based activity in all salmon markets
Technology for sustainable biology
Significant investment in land based expected
Global full-cycle salmon production perspective Big smolt in Norway
Technology for sustainable biology
Agenda
Company overview
Financials
Market drivers and focus areas
Outlook Iceland
Technology for sustainable biology
Salmon production on Iceland is forecasted to reach close to 50,000 tonnesin 2020
0
10
20
30
40
50
60
70
80
90
100
110
2015 2019E2016 20252018E2017 2020E
Source: Pareto Securities
Production (‘000 tonnes)
Licenses applied
Technology for sustainable biology
Ambitious growth plans seems more likely than ever
Few players that can collaborate to “get it right”
Farming experience and involvement of Norwegian players
Favorable natural conditions, quite similar to Finnmark (low
temperature strategy needed)
Strong Islandic economy and sufficient political support
Granting new licenses has taken time in the past
Far from end-markets and immature logistic chains
Financing capacity
Strengths Challenges
Technology for sustainable biology
AKVA group is dedicated to play a vital role on Iceland
Deliveries of complete facilities for flow through and
RAS land based farming
Proven solutions for arctic and harsh conditions
Local presence Complete farming solutions and service offerings
Technology for sustainable biology