Bringing intelligent software and digitalization to the aqua industry

NASF Bergen 7. March, 2019

Petter I. JenssenCDOAKVA Group

Technology for sustainable biology

40 years of pioneering technology innovation and deliveries in over 65 countries worldwide- > 50% market share worldwide in “Control system IT/OT” and “Planning and optimizing SW”- New AI solution developed and tested over 3 years with ~10.000 hours of real life testing across 3 continents

Cage Based Technology Land Based Technology Software

Technology for sustainable biology

How can digitalization help the Industry ?- Digitalization advancement is (at the moment) exponential and provides massive opportunities

• Are we moving fast enough?

• How can we bring a set of digital initiatives to scale?

• How do we monetize thenew, digitalized processes

• Who gets the benefits?• Buy or build? • Co-opetition? Shared

solutions?

Key questions

Technology for sustainable biology

It is early days for aquaculture digitalization, but a lot of innovation is seen in the pursuit of reducing cost, increasing output and enabling growth

Aquaculture? Doing completely new things• Better understanding of the fish’s biology and genetics• Better understanding of farming’s interaction with the environment• Improve fish welfare/ breeding strategies • Reduced environmental footprint and diseases • Experiment with new business models• EXAMPLE: ”Feeding as a Service”

Reduce cost

Increase output

New growth

Doing the right things• Big data and artificial intelligence can contribute significantly to

insight in biology and the interaction between the fish, technology, environment (health, lice, feed, ..) – biomass optimization

• EXAMPLE: Aqua Cloud lice prediction models• EXAMPLE: Fishtalk Planner and Optimizer

Doing things right• Take away the human “error”, automate work processes and create more

cost-effective operations• Improved maintenance / less breakdowns and increased safety• More targeted, non-invasive treatment (lice)• EXAMPLE: Remote operations / Feeding control centres

*) Source: DnB, AKVA Group analysis

Technology for sustainable biology

The industry needs to unlock the potential of digitalization- Prediction – the Aqua Industry will spend significantly more on IT over the next 5 years

Young and relatively immature Industry• Aquaculture companies, and their suppliers, have

moderately low levels of IT spending, focused primarily on ERP/PLM /back-office, manufacturing/real time monitoring, and supply chain functions. Less customer-facing systems and use of AI and other emerging technologies

Tremendous business case• Software spend is ~ 1 % of revenue in the AQUA

industry (vs. 3-7% in digitally intensive/- matureindustries)

• We expect the industry to embrace innovative digitalization strategies to achive spectacularimprovements

• This will mean both renewal strategies i.e. legacymodernisation and consolidation, but even more new and innovative use of IT

AQUA sector at ~1 %

Source: Deloitte (2017), Computer Economics (2018), AKVA Group analysis

• Thus, spend on both operational and capital IT-spend is expected to increase significantly

Technology for sustainable biology

Where should we look to find the potential biggestimpacts of digitalization in fish farming?

Effort

Impact

- Relative cost size and potential improvement opportunity -

Precision feeding

> 5,5 b EUR

Mortality

>3 b EUR

*) Source: Salmon industry handbook, 2018 **) Source: Nofima /iLaks; (2018), Intrafish (feb 2019)

Illustrative

Reducedopex

> 1,5 b EUR

Lice>1 b EUR

Technology for sustainable biology

• Cloud based SW solutions with open standards / API’s and unrivalled user experience

• Unique data platform with value added capabilities that is co-existing with other key players in the marketplace

• Leading, practical AI applications to drive benefits from combination of vast historical data and real time data

• Holistic approach with “fit for purpose” solutions – not pushing point solutions

• Information security at the forefront to cater for a safe «IoTrevolution»

• Global reach and support – rapid industrialisation and roll-out of new best practices concepts x-regions / x-continents

What AKVA Group believes in and will deliver on- We will help farmers getting from ART to SCIENCE in performance feeding, biomass prediction and health/ environmental control and monitoring

• «From ART to SCIENCE»• «Be open for business»• «Support the ecosystem»• «The future belongs to specialists»

– partner with the best ones• «Build –test –run» - speed to

market is key• «There are no silver bullets – just

hard work»

Guiding principlesAKVA Group initiatives

Technology for sustainable biology

Akva Groups will provide a new data platform /set of API’s– We are «Open for business» and will bring new models for enabling data access

• We will cover from the whole value chain with deepand rich industry data for the Salmon industry

• We provide 3rd party security and integrity to yourdata

• We are «open for business» for the extendedecosystem to use / consume the data in a controlledmanner

• We will also provide some of the smartest, ready-made, new applications using our data platform (20-30+) from day 1

• We are aiming to digitalize the whole industry –enabling Tier 2/3 players to become as datadrivenas the largest players

• We provide full transparency on pricing, standards and data ownership/anonymity

- Features -- Offering - simplified -

Predictive Maintenance

Production Optimization

Remote monitoring

Data sources

Data layer

Applications Simulations and visualization

Benchmarking

Gov’ regulators and Alliance

Partners

Security / integrity

HORIZONTAL DATA PLATFORM

AppStore

3rd party data clouds

FishtalkAKVA

ConnectSensors/data sources

IOT Hub

Technology for sustainable biology

Next generation feeding – where fish farming can be more efficient- The single biggest expence for farmers > 40% of total costs

• Manual inputs– Manual inputs from several disparate sources

• Variation of strategy– Feeding strategies vary from farmer to farmer

• Variation of stopping – Farmers use different depths and identify

different patterns for stopping strategies

• Increased data– Amount of data used to feed the optimum is

increasing day to day

• No real-time feeding data – No recording of actual feeding activity to

amount of food inserted

– No recording of alerts / audit trial

– Limited or no “receipt” of single biggest expence

- Farmers sits in front of up to 38 screens ~9 hours a day -

Natural inefficiencies due to high level of concentration required

- Today’s practice -

Technology for sustainable biology

From ART to SCIENCE using Artificial Intelligence- Intelligent Feeding Assistant

AI processing

Farmers

Intelligent Feeding Assistant

• Applies computer vision and machine learning – allows farmer to maximize stock value

• Simplify the feeding process by bringing all their tools and input together in one place

• Make intelligent recommendations and predictions about when and how much to feed given farm conditions and fish behaviour.

• All this is done in real time using existing infrastructures (hardware) already in place on a farm.

Localtool

Cloudmgmt tool

• No extra cage equipment - inputs already there

• Reduction of screens• Live correlation of all data • Combination of all visual factors• Self learning system

Example: New real-time control system

Example – Intelligent Feeding Assistant (AI)- Works in rough environments with only 3-4 meters sights

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Technology for sustainable biology

Example – Intelligent Feeding Assistant (AI)13

Technology for sustainable biology

Next steps - bringing more data brings more potential

• Understand and optimize correlations with FCR and SGR – hit closer to optimum

• Understand treatment plans

• Time correlating feeding activity with every other data stream

• Health anomalies alerts

• Predictions

• Biomass calculations

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Thank you !

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