Kaldalon Hf · OMXICE:KALD
Kaldalon Hf — FY2022 Earnings Presentation
33 slides from Kaldalon Hf's earnings presentation, Mar 3, 2023
Slide 1: 2022 Financial Statement
2022 Financial Statement Presentation for stakeholders 3 March 2023
Slide 2: Agenda
Agenda 2022 FINANCIAL STATEMENT - PRESENTATION FOR STAKEHOLDERS 1. Activities in 2022 2. Investment assets 3. 2022 Financial Report 4. Prospects and market listing Víkurhvarf 7 PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 2
Slide 3: Highlights of 2022
Highlights of 2022 EMERGENCE OF A REAL ESTATE COMPANY • The Company’s transformation process is near completion and a real estate company has been created • The Company’s investment assets amount to 41.7 billion ISK • The Company’s investment assets are up by 131% between years • Agreement on 90,700
Slide 4: Principal milestones
Principal milestones PRINCIPAL LANDMARKS IN THE COMPANY’S TRANSFORMATION PROCESS Issue of new shares to Company hires own Jonathan B. Rubini, Issue of shares to employees Stefnir and VÍS qualified investors New board of Sale of subsidiary directors Steindórsreitur (building lot) Sale of Shareholders
Slide 5: Principal milestones of 2022: first half transactions
Principal milestones of 2022 COMPLETED TRANSACTIONS IN THE FIRST HALF OF THE YEAR Gylfaflöt 1 Dalvegur 20 Bústaðavegur 20 Miklabraut 100 Völuteigur 31A Suðurfell 4 Skagabraut 43 Óseyrarbraut 2 Hagasmári 9 Fossaleynir 19-23 Miklabraut 101 Brúartorg 6 Fitjar 1 Grjótháls 8 Fiskislóð 29 PRESENTATION FOR
Slide 6: Principal milestones of 2022: second half transactions
Principal milestones of 2022 COMPLETED TRANSACTIONS IN SECOND HALF OF THE YEAR Skógarhlíð 18 Hæðarsmári 2 Víkurhvarf 7 Hringhella 9 Tourist service properties in Vestmanna Islands In divestment process Víkurhvarf 1 Hæðarsmári 4 Köllunarklettsvegur 1 Hringhella 9a Þverholt 1 Hæðarsmári 6 Álfhella 5 V
Slide 7: Financial standing – on a proper course
Principal milestones of 2022 FINANCIAL STANDING – ON A PROPER COURSE Portfolio trend by quarter (m2) 100.000 80.000 98.9 16.2 41,711 60.000 % % ISK million 40.000 Rate of rental* Return on equity Investment assets 20.000 0 2021 2021 2021 2022 2022 2022 2022 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Agreement Purchase co
Slide 8: Business operation – on a proper course
Principal milestones of 2022 BUSINESS OPERATION – ON A PROPER COURSE 2.6 billion 1.8 billion 12 years Pre-tax profits Operating Average length income of leases 16.2% 600 m 74% Return on equity Net cash from Operating profit operation* ratio *Adjusted for one-off tax payment relating to sale of asset
Slide 9: Share capital: shares issued
Share capital SHARES ISSUED New Share 11,128 Capital 227 835 The Board of Directors of the Company is at year-end authorised under Section 2.3 of the Company’s Articles of Association to increase share 2,222 123 capital by up to 3,277,973,492 ISK. 270 315 90 94 In the course of the year the Board of
Slide 10: Share capital: volume and prices
Share capital VOLUME AND PRICES 100 2,5 M ISK per day Issued shares at the start of the year were 5,461,217,106 ISK and 90 11,128,216,469 ISK at the close of the year, with new share issues over the 80 2 year at 5,666,999,363 ISK. Own shares at the close of the year were 574,009, putting the number
Slide 11: Number of shareholders and largest shareholders
Share capital NUMBER OF SHAREHOLDERS AND LARGEST SHAREHOLDERS Shareholder 31.12.2022 Shareholder 31.12.2022 Number of shareholders 1. SKEL Investment company hf. 12.7% 11. Búbót ehf. 2.4% 600 2. Arion Bank hf. 9.5% 12. MA5 ehf.. 2.0% 3. Stefnir – Domestic equity hs 7.7% 13. RES 9 ehf. 1.8% 500 4. No
Slide 12: Agenda
Agenda 2022 FINANCIAL STATEMENT - PRESENTATION FOR STAKEHOLDERS 1. Activities in 2023 2. Investment assets 3. 2022 Financial Report 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 12
Slide 13: Property portfolio
Property portfolio INCOME GENERATING REAL PROPERTIES BASED ON ANNOUNCED TRANSACTIONS – SCENARIO 12% 12% 11% 21% Office premises Office premises 90,700 Retail and services Retail and services SQUARE METRES 27% 30% Warehouses and Warehouses and industry industry 49% Hotels Hotels 38% 42.8 billion ISK
Slide 14: Property portfolio: asset classes
Property portfolio INCOME-GENERATING REAL PROPERTIES BASED ON ANNOUNCED TRANSACTIONS Kaldalón 11% Asset Classes 21% Office premises ▪ Kaldalón is a company with a Retail and services diversified portfolio. 30% Warehouses and ▪ In the long term the Company will industry Hotels seek to ensure that no
Slide 15: Non-core investment assets
Non-core investment assets TARGETED SALES OF NON-CORE ASSETS Investment assets at year- 3.2 bn ISK end 96% income generating < 1 bn ISK Start of year Year-end Investment assets Year’s targets achieved. Non-core assets accounted at 995 m ISK. Mostly completed residences in a divestment process Buildi
Slide 16: Investment assets overview of deliveries
Investment assets overview of deliveries COMPANY’S INVESTMENT ASSETS INCREASING STEADILY Investment properties (m2) 100% Properties under Q1 Q2 Q3 Q4 Q1 5.700 2023 2023 2023 2023 2024 90% construction 13.500 80% Köllunarklettsvegur 1 70% C. 45% of property delivered. Completion scheduled for year-en
Slide 17: Agenda
Agenda 2022 FINANCIAL STATEMENT - PRESENTATION FOR STAKEHOLDERS 1. Activities in 2022 2. Investment assets 3. 2022 Financial Report 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 17
Slide 18: Highlights of the Operation in the Year 2022
Highlights of the Operation in the Year 2022 FINANCIALS Equity (billion ISK) 20,2 Operating profit ratio 74% despite expense of transformation process 8,2 3,2 4,2 4,6 Operating profit before valuation adjustments exceeded net financial 2018 2019 2020 2021 2022 expenses Profit before taxes (m ISK) 2,
Slide 19: Income Statement
Income Statement OPERATING PROFIT RATIO 74% Income Statement 2022 2021 ▪ In the first half of 2021 the Company reported as an investment Rental income 1,722 233 company, and therefore P&L in the financial statement is not Other income 39 0 comparable with the preceding year. Operation of investment
Slide 20: Income Statement: profit before tax
Income Statement PROFIT BEFORE TAX 2.6 BILLION ISK ▪ Value adjustment of investment assets 2.5 billion Income Statement 2022 2021 ▪ Average yield of valuation 6.24%, up by 26 points from interim statement Rental income 1,722 233 Other income 39 0 Operation of investment assets (235) (30) ▪ Net finan
Slide 21: Balance sheet
Balance sheet TOTAL ASSETS OF THE GROUP APPROXIMATELY 45.5 BILLION ISK 31.12.2022 31.12.2021 ▪ Investment assets increased by 23 billion ISK, or 131%, over the year, Fixed assets to 41.7 billion ISK Investment assets 41,711 18,082 Holdings in affiliated companies 0 101 Long-term receivables 669 554
Slide 22: Balance sheet: debt ratio
Balance sheet DEBT RATIO 48% 31.12.2022 31.12.2021 ▪ Share capital increased by 5.7 billion ISK, over 10 billion at market value Equity 20,717 8,359 ▪ Includes c. 5.5 billion in market value in the form of consideration in trades Deferred income tax liability 2,567 1,553 ▪ Equity increased by 148%,
Slide 23: Agenda
Agenda 2022 FINANCIAL STATEMENT - PRESENTATION FOR STAKEHOLDERS 1. Activities in 2022 2. Investment assets 3. 2022 Financial Report 4. Prospects and market listing PRESENTATION FOR SHAREHOLDERS - KALDALÓN HF. 23
Slide 24: Financing
Financing WORK ON SETTING UP A BOND FRAMEWORK BEGUN Refinancing need 6 ISK billion ▪ The Company’s investments have mostly been financed 5 with new 3 to 5-year bank loans and to a small extent by taking over debts. 4 3 ▪ The emphasis has been on debts being prepayable at no 2 cost 1 ▪ The increased
Slide 25: Financing: 92% of debts prepayable
Financing 92% OF DEBTS PREPAYABLE* 19.8 billion ISK Interest-bearing debt 31.12.2022 2% Other interest- bearing debts related to non-core assets 33% Indexed liabilities at year-end – of which 76% prepayable* 65% Non-index linked debts at year-end – Prepayable in full *40% of prepayable index-linked
Slide 26: Income growth
Income growth GROWTH BASED ON CURRENT PORTFOLIO Rental income next 12 months (ISK m)* ▪ Majority of acquired properties over the year income-generating on 3,308 3,382 3,437 3,173 acquisition 2,759 2,839 ▪ The Company has acquired properties or entered into contracts on acquiring properties in develo
Slide 27: Balance Sheet: annual financial report and pro forma
Balance Sheet ANNUAL FINANCIAL REPORT AND PRO FORMA Assumptions 1 2 3 1. Sales of non-core development properties completed and Other related charges paid Balance Sheet 31.12.2022 Sale of assets* Trade movement Pro forma settlements s 2. Completion of transactions on acquired properties and Investme
Slide 28: Listing on Nasdaq Iceland
Listing on Nasdaq Iceland LISTING IN SIGHT Targeted listing 50 billion 3,500 m The First North Market has already given the Company access to most of the advantages of being a listed company in a securities exchange and an ISK opportunity to develop the business operation more rapidly than would oth
Slide 29: State of board's targets prior to listing
Listing on Nasdaq Iceland STATE OF BOARD’S TARGETS PRIOR TO LISTING Targeted Investment assets Revenue listing 83% 79% 50 OPERATING HISTORY 25 75 75% 50 50 H1 / 2023 Objective: 25 75 25 75 0 100 An interim financial statement with pure operation of the property 0 100 0 100 portfolio has been issued
Slide 30: Company growth – according to plan
Company growth – according to plan SCENARIO OF PREVIOUS ESTIMATES FOR 2023 Scenario from interim statement Year-end position Value of investment assets based on fixed growth ▪ Over the past 18 months the Company has invested in 55 b. ISK. interest-generating properties for 5.7 billion on average 50
Slide 31: Finally
Finally ONWARDS • Investment assets more than doubled between years. Agreement on 90,700 m2 real property. • Very good operating results despite extensive work relating to transformation, preparation for listing and growth. • Targets achieved in transformation and Kaldalón hf. is now a real estate c
Slide 32: Disclaimer
Disclaimer “All information in this presentation is to the best knowledge of the management of Kaldalón at the time of the presentation. It should be noted that the Company’s operating environment is impacted by a number of factors that cannot be foreseen. Results and forecasts can change and the Co
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