Slide 1: Second Quarter 2024 Presentation
Second Quarter 2024 Presentation 23. August 2024
Slide 2: Agenda
Agenda Highlights and key figures In brief Segment review Financials Summary and outlook 02 BORGESTAD ASA
Slide 3: Highlights and key figures
Highlights and key figures Highlights Rolling quarterly revenue and EBITDA development for the Group 1 Borgestad Groups profit before tax at MNOK 32.7 for second quarter 2 Revenue EBITDA % EBITDA margin 2024 compared to MNOK 2.2 in second quarter 2023. 1 400 EBIT margin at 6.0 percent for Höganäs Bo
Slide 4: Borgestad is an investment company focused on real estate and refractory
Borgestad is an investment company focused on real estate and refractory Real Estate Refractory Agora Bytom shopping center in Poland is the Höganäs Borgestad is a manufacturer largest investment of the Group, accounting and supplier of refractory quality for over half of the balance sheet products,
Slide 5: Borgestad to be an industrial investment company with significant operational improvement potential
Borgestad to be an industrial investment company with significant operational improvement potential Strategy Key tools • Borgestad ASA is an investment company, where The right team Real Estate and Refractory constitute the two most significant areas of operation • Continually improve operations in
Slide 6: Segment property/ Agora Bytom
Segment property/ Agora Bytom 06 BORGESTAD ASA
Slide 7: Agora Bytom deliver stability
REAL ESTATE: AGORA BYTOM Agora Bytom deliver stability Latest trends and developments Revenue development Growth NOKm • Stabilized operations after a year with many 11% 14% 2% 17% 6% upgrades by tenants. 69,1 70,2 60,6 • Focus on increasing margins, by turnover 17,7 18,8 increase and cost cutting. 2
Slide 8: Continued improvement in retail sales and basket, and the Polish economy has a positive trend
REAL ESTATE: AGORA BYTOM Continued improvement in retail sales and basket, and the Polish economy has a positive trend Retail sales (turnover 2021-2024) Comments PLN • Turnover among the tenants increased with 25 000 000 4.0 % in Q2’24 compared to Q2’23. 20 000 000 15 000 000 • With 4.8 million visi
Slide 9: Diversified tenant base
REAL ESTATE: AGORA BYTOM Diversified tenant base Highly diversified tenant base Comments Highly diversified tenant base Lettable area per tenant Lettable area per tenant 100% Retail Other WAULT by area: 3.41 years 59% 6,8% 3,4% Office & warehouse 2% 2% 3% 3% 8,6% 4% 4% Fashion 5% 4% 37,8% WAULT by i
Slide 10: Höganäs Borgestad
Höganäs Borgestad 10 BORGESTAD ASA
Slide 11: Continued turnover and EBIT increase
REFRACTORY: HÖGANÄS BORGESTAD Continued turnover and EBIT increase Latest trends and developments Revenue development Growth NOKm1 • In Q2 2024, the refractory segment had a 2% 23% 2,0% 33,0% 6,3% turnover of MNOK 318.0, with an increased EBIT margin compared to Q2 2023. 1072,2 1093,8 870,8 • Adjust
Slide 12: Höganäs Borgestad's position in the Nordics – significant market share
REFRACTORY: HÖGANÄS BORGESTAD Höganas Borgestad’s position in the Nordics – significant market share and EBIT LTM above market performance 2023: Höganäs Borgestad EBIT Position in the Nordics Historical performance below Nordic peers margin trend is good:1 Revenue (SEKm) Market share % Revenue (SEKm
Slide 13: Turnover
REFRACTORY: HÖGANÄS BORGESTAD Development turnover and EBIT last three years, excluding positive Arbitration effect on EBIT, show a positive trend Rolling 12-month turnover and EBIT 1 NOKm 1 200 70 Turnover 12 mth EBIT 12 mth 60 Focus forward: 1 000 50 • Focus on increasing profitability and cash fl
Slide 14: Targeting to maximize shareholder returns by realizing a well-defined buy & build strategy
Targeting to maximize shareholder returns by realizing a well-defined buy & build strategy - illustration Shareholder value Further integration & synergy creation Continue to buy and build via acquisition of refractory service Max with Further integration & Other synergies B&B synergy creation durin
Slide 15: Borgestad – Group P&L, balance sheet and cash flow
Borgestad – Group P&L, balance sheet and cash flow 15 BORGESTAD ASA
Slide 16: Income statement
FINANCIALS Income statement NOK 1,000 01.04- 30.06.2024 01.04- 30.06.2023 LTM 2024 2023 Revenue 336 727 316 745 1 165 565 1 141 366 COGS -152 089 -180 637 -542 135 -285 570 Personnel -109 960 -92 915 -378 698 -347 108 Other OPEX -29 483 -25 560 -88 543 -84 262 EBITDA 45 195 17 633 156 189 127 478 De
Slide 17: Balance sheet
FINANCIALS Balance sheet NOK 1,000 30.06.2024 31.12.2023 NOK 1,000 30.06.2024 31.12.2023 Equity 762 507 755 842 Intangible assets 115 738 124 010 Buildings, fixtures, machinery and vehicles 54 657 54 956 Provisions / reserve for liabilities 6 584 6 369 Investment properties 707 417 701 407 Secured d
Slide 18: Cash flow statement
FINANCIALS Cash flow statement NOK 1,000 01.01-30.06.2024 01.01-30.06.2023 Cash flow from operating activities before balance changes 38 822 3 340 +/- Balance changes - 61 687 -7 084 Cash flow from operating activities -22 865 -3 704 Payments to other investments - 506 -9 826 Inflows from other inve
Slide 19: Summary
Summary Strong operations in Q2 2024 • Höganäs Borgestad Group has an EBIT margin of 10.5 percent in Q2 and 6.0 percent YTD’24, compared to respectively 3.0 percent and 1.8 percent in 2023. • Profit before tax for at MNOK 32.7 in Q2’24 for Borgestad Group, compared to MNOK 2.2 in Q2’23. Strengthened
Slide 20: Outlook and priorities
Outlook and priorities Operational improvements are key focus and Borgestad expects gradual further improvement of profitability, capital efficiency and cash flow within its refractory business Borgestad estimates revenue and EBITDA stable going forward for Agora Bytom Review and investigate the pos
Slide 21: Alternative performance measures
Appendix Alternative performance measures In order to enhance investors' understanding of the Group's performance the Company presents in this Presentation certain alternative performance measures ("APMs") as defined by the European Securities and Markets Authority its Guidelines on Alternative Perf
Slide 22: Contact details
Gunnar Knudsensveg 144 +47 35 54 24 00 3712 Skien post@borgestad.no Norway borgestad.no BORGESTAD ASA