Slide 1: First Quarter 2024 Presentation
First Quarter 2024 Presentation 16. May 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 Significant improved capital efficiency in the Group over the last twelve 2 months with NWC reduction of MNOK 52.6. Revenue EBITDA % EBITDA margin 1 400 2 Höganäs Borgestad Group has increased its
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 stands as a powerhouse of The right team investment, where Real Estate and Refractory constitute the two most significant areas of operation • Continually improve op
Slide 6: Segment property/ Agora Bytom
Segment property/ Agora Bytom 06 BORGESTAD ASA
Slide 7: Agora Bytom deliver stability
REAL ESTATE: AGORA BYTON Agora Bytom deliver stability Latest trends and developments Revenue development Growth NOKm • Stabilized operations after a year with many 11% 14% 2% 15% 9% upgrades by tenants. 69,1 70,6 60,6 • Focus on increasing margins, by turnover 17,4 18,9 increase and cost cutting. 2
Slide 8: Continued improvement in retail sales and footfall and the Polish economy has a positive trend
REAL ESTATE: AGORA BYTON Continued improvement in retail sales and footfall and the Polish economy has a positive trend Retail sales (turnover 2021-2024) Comments PLN • Turnover among the tenants increased with 25 000 000 10.7 % in Q1’24 compared to Q1’23. 20 000 000 15 000 000 • With 4.9 million vi
Slide 9: Diversified tenant base
REAL ESTATE: AGORA BYTON 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: 3.46 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 EBIT/ EBITDA increase
REFRACTORY: HÖGANÄS BORGESTAD Continued EBIT/ EBITDA increase Latest trends and developments Revenue development Growth NOKm1 • In Q1 2024, the refractory segment had a 2% 23% 0,2% 11,2% 1,5% turnover of MNOK 203.9, with an increased margin compared to Q1 2023. 1072,2 1074,9 870,8 • Adjusted last tw
Slide 12: Höganas Borgestad's position in the Nordics – significant market share
REFRACTORY: HÖGANÄS BORGESTAD Höganas Borgestad’s position in the Nordics – significant market share – underpreforming on profitability, but trend is good: Höganäs Borgestad EBIT Position in the Nordics Historical performance below Nordic peers margin trend is good:1 Revenue (SEKm) Market share % Re
Slide 13: Turnover
REFRACTORY: HÖGANÄS BORGESTAD Development turnover and EBITDA last three years, excluding positive Arbitration effect on EBITDA, show a positive trend Rolling 12-month turnover and EBITDA NOKm 1 200 70 Turnover 12 mth EBITDA 12 mth Focus forward: 60 1 000 • Focus on increasing profitability and cash
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 01.01- 31.03.2024 01.01- 31.03.2023 LTM 2024 2023 Revenue 222 759 218 594 1 145 582 1 141 366 COGS -102 225 - 114 113 -570 682 -285 570 Personnel -86 334 -71 789 -361 653 -347 108 Other OPEX -26 044 -25 686 -84 620 -84 262 EBITDA 8 156 7 006 128 628 127 478 Depr
Slide 17: Balance sheet
FINANCIALS Balance sheet NOK 1,000 31.03.2024 31.03.2023 NOK 1,000 31.03.2024 31.12.2023 Equity 765 617 755 842 Intangible assets 150 325 152 509 Buildings, fixtures, machinery and vehicles 55 872 54 956 Provisions / reserve for liabilities 6 480 6 369 Investment properties 727 085 701 407 Secured d
Slide 18: Cash flow statement
FINANCIALS Cash flow statement NOK 1,000 01.01-31.03.2024 01.01-31.03.2023 Cash flow from operating activities before balance changes1 625 -3 053 +/- Balance changes 26 855 14 424 Cash flow from operating activities 27 480 11 371 Payments to other investments -267 -8 328 Inflows from other investmen
Slide 19: Summary
Summary Strong operations in Q1 2024 • Höganäs Borgestad Group has increased its adjusted EBIT margin with 1.7 percent last twelve months. • EBITDA ended at MNOK 8.7. Strengthened balance and liquidity situation • Significant improved capital efficiency in the Group over the last twelve months with
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: Gunnar Knudsensveg 144 3712 Skien Norway
Gunnar Knudsensveg 144 +47 35 54 24 00 3712 Skien post@borgestad.no Norway borgestad.no BORGESTAD ASA