aquaculture – a growing global...

Your Aquaculture Technology and Service Partner

Aquaculture – a growing global industryGREATER STAVANGER, November 6th, 2015

Trond Williksen, CEO, AKVA group ASA


AKVA group – in brief

• Originated and headquartered at Bryne, Rogaland

• Leading technology solutions and service partner to the global aquaculture industry

• 690 employees globally

• Listed at OSE

• Revenues of NOK 1,3bn, EBITDA of NOK 103m in 2014

• Market cap of NOK ~900 million


Global presence

Map of activities

NordicAmericasExport

Salmon80 %

Other Species10 %

Non Seafood10 %

CAPEX based revenue72 %

OPEX based revenue28 %


Perspective of the aquaculture industry

Core Value Chain

Direct supplies and services

Indirect supplies and services

Aquaculture production

Primary and secondary processing

Sales and distribution

Technology and service providersFarm support services

Insurance providers Banking services

Genetics providersFeed suppliers

Supply and service providers to directs suppliers of core value chain

R&D providers

Governance Organizations

Consultants

Supply and service providers to directs suppliers of core value chain


The challenge and the paradox

AQUACULTURE COULD BE AN ANSWER TO

BOTH

THE GLOBAL CHALLENGE;

• World population increase from 7 billion in 2011 to 9 billion in 2050

• World’s food production systems are unsustainable

• Managing the contribution of the food system to the mitigation of climate change

• Maintaining biodiversity and ecosystem services while feeding the world

THE GLOBAL PARADOX;

• 1 Billion people worldwide are starving• 1 Billion people worldwide are obese


Growth in sustainable aquaculture driven by megatrends

ü Aquaculture represents very efficient protein production - with low carbon footprint

ü Marine food sources produced through aquaculture represents a well documented healthy alternative

ü The oceans represents a vast potential still not utilized for food production


The growing global movement to participate in sustainable aquaculture

The progressive regions:

SalmonSea Bass & Sea BreamOther Species – emerging regions

Middle East:Offshore – Saudi , Oman, Iran (Caspian)Lakes/Dams – IranLand Based – UAE, Saudi, Oman, Iran

Sub-‐Sahara Africa:Offshore –Mauritius, MozambiqueLakes/Dams – Lesotho, Ghana, SE AfricaLand Based – SE Africa

Asia:Offshore – Indonesia, Malaysia, Japan, South Korea, India, Sri LankaLakes/Dams – China, VietnamLand Based – China, Thailand, Malaysia, Indonesia, Vietnam


Aquaculture has become important for Norway Strong growth in value generation from the sector

Aqua Service sector growing rapidly Sector produces more than 37 million healthy meals a day

Seafood exports exceeds 68 BNOK a year (2014)

Source: Arctic Securities Research

Source: Sjømat Norge




Norway – uniquely positioned

The salmon industry, and Norway in particular, represents a frontier in global aquaculture

üTechnology

üOperations

üFinancial

üRegulatory

üScience


That’s good because – “we need more than the oil industry”


DRIVING FORCES – SALMON INDUSTRY

SHORELINE

The exponential challenge of the coastal zone• CONCENTRATION OF STAKEHOLDER INTEREST

• WATER QUALITY

• AVAILABLE SPACE FOR EXPANSION

• ENVIRONMENTAL IMPACTS OF CONCENTRATED ACTIVITIES

AVAILABLE TECHNOLOGY MAKES DIVERSIFICATION FROM COSTAL SONE POSSIBLE

EXPOSED SITES FARMING

LAND BASEDFARMING


CAGE FARMING DEVELOPMENT

SHELTERED EXPOSED 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

• 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• 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

LAND BASED TECHNOLOGY

CLOSED CONTAINMENT TECHNOLOGY AT SEA


Cycle development

Time

Continued growth expected – still in early stage of development

Cycle development

Oil

Aqua

Growth drivers

• Salmon industry the frontier

• 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


550 BNOK in 2050

Kilde:Det Kongelige Vitenskabers Selskab og Norges Tekniske Vitenskapsakademi.


Technology transfer – the new opportunity?

TRANSFER

Oil and marine industries

Aquaculture


Technology transfer – nothing new!

All our technologies have elements of technology transfers from other

Industries


Technology transfer – contributions could be made and are welcome, given relevance

üCompetence

üCost structure

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