Hagar Hf. · OMXICE:HAGA
Hagar Hf — Investor Presentation (March 2019)
32 slides from Hagar Hf's investor presentation, Mar 8, 2019
Slide 1: Investor Presentation
Investor Presentation 8th March 2019
Slide 2: Merger of Hagar and Olís
Merger of Hagar and Olís • Integration is well underway • Changed company • Strong balance sheet and reliable operations • Many opportunities • This presentation takes into account that Olís balance sheet is part of the Consolidated Financial Statements for the first 9 months of the operating year,
Slide 3: Consolidated Highlights
Consolidated Highlights - for the nine months ended 30 November 2018 • Comprehensive income for the period ISK 1.764 m or 3,1% of sales • Earnings per share ISK 1,60 • Sales for the period ISK 56.255 m • Gross profit for the period 24,1%. • EBITDA for the period 3.110 m • Total assets 52.737 m at th
Slide 4: Statement of Comprehensive Income
Statement of Comprehensive Income Q3 2018/19 Q3 2017/18 2018/19 2017/18 01.09-30.11 01.09-30.11 01.03-30.11 01.03-30.11 Sales 18.521 16.915 56.255 54.084 Cost of goods sold (14.124) (12.719) (42.703) (40.691) Gross profit 4.397 4.196 13.552 13.393 Other operating income 55 141 161 244 Salaries and r
Slide 5: Impact Factors for the first nine months
Impact Factors for the first nine months + 4,0% Sales + 2,65% CPI • Average change in prices and exchange rates + 1,04% CPI excl. housing Purchase index in foreign currencies + 5,2% (weakening of ISK)
Slide 6: Grocery stores: quantity and number of customers
Number of Grocery stores Qty customers Change between years % +1,0% +1,6%
Slide 7: Gross Profit %
Gross Profit % 25,0% 24,6% 24,8% 24,8% 24,1% 24,3% 24,0% 24,4% 24,8% 24,8% 24,1% 23,5% 20,0% 15,0% 10,0% 5,0% 0,0% 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 9M
Slide 8: Cost Ratios
Cost Ratios Salaries & Other operating expenses 12,0% 11,0% 10,9% 10,3% 10,0% 9,6% 9,4% 9,7% 9,2% 9,3% 9,3% 9,1% 9,0% 8,7% 8,7% 8,5% 8,7% 8,6% 8,4% 8,2% 8,2% 8,3% 7,9% 8,0% 8,0% 6,0% 4,0% 2,0% 0,0% 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 9m Hlutfall la
Slide 9: Balance Sheet
Balance Sheet 30.11.2018 28.02.2018 Assets Non-current assets 34.279 20.364 Current assts 18.458 9.020 Total assets 52.737 29.384 Equity and liabilities Share capital 1.213 1.103 Other equity 22.513 16.854 Total equity 23.726 17.957 Non-current liabilities 7.137 2.935 Current loans and borrowings 8.
Slide 10: Cash Flows
Cash Flows Q3 2018/19 Q3 2017/18 2018/19 2017/18 01.09-30.11 01.09-30.11 01.03-30.11 01.03-30.11 Net cash provided by operating activities 753 157 1.676 1.453 Net cash used in investing activities (5.407) (1.284) (5.784) (2.185) Net cash used in financing activities 5.073 (829) 4.659 (1.510) Net inc
Slide 11: Changes in Equity
Changes in Equity Share Share Restricted Retained capital premium Legal reserve reserve earnings Total equity Equity at 1 March 2018 1.103 -- 239 3.664 12.951 17.957 Comprehensive income for the period 1.764 1.764 Transferred to legal reserve 64 (64) -- Dividends paid, 1.024 ISK per share (1.129) (1
Slide 12: Equity
Equity - ISK million - Equity Equity ratio 25.000 70,0% 23.726 61,1% 57,8% 60,0% 55,1% 20.000 53,5% 50,0% 45,5% 17.412 17.957 45,0% 15.000 16.368 40,0% 14.764 12.098 30,0% 10.000 20,0% 5.000 10,0% 0 0,0% 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 9M
Slide 13: Sold Assets – Conditions of Settlement with ICA
Sold Assets – Conditions of Settlement with ICA Location Operation Faxafen Bónus store Hallveigarstígur Bónus store Smiðjuvegur Bónus store Háaleitisbraut Service station Olís Vallargrund 3 Service station Olís Starengi ÓB station Kirkjustétt ÓB station Knarrarvogur ÓB station Stykkishólmur Olís sto
Slide 14: Key Projects
Key Projects • New Bónus store opened in Skeifan 11 on 1 December 2018. The store has been well received. • New Bónus store will open in Garðatorg, Garðabæ, in few weeks. • Bónus in Mosfellsbær will move to a new and better location before the end of Q2. • New ÓB station will open in Vík í Mýrdal in
Slide 15: Integration Projects
Integration Projects • Estimated synergy ISK 600 million • Financing • Olís headquarters move to Skútuvogur 5 • Restructuring of warehouse operations • Streamlining and synergy in core business and support service departments • Development projects • Purchasing • Distribution • Agreement regarding c
Slide 16: Olís Brands
Olis Brands 6:3 Vinur vid veginn ee) Q Quiznos r REKSTRARLAND
Slide 17: Emphasis on Core Business
Emphasis on Core Business • Warehouse operations strengthened and streamlined • More emphasis in core business • More emphasis in the wholesale market through Stórkaup og Rekstrarland • Less emphasis in Hagkaup on clothing • Borgarnes closes in April • Clothing departments scaled down or closed • Co
Slide 18: Warehouse Operations - Highlights
Warehouse Operations - Highlights • Aðföng operation in Skútuvogur 5, 7 and 9 • Olís inventory and distribution brought under operation of Aðföng, excl. fuels • Olís inventory in Súðarvogur 2(4.200 m2) and Vatnagörðum 10 (1.100 m2) brought under operation of Aðföng • Olís cost of warehousing mostly
Slide 19: Warehouse Operations - Highlights
Warehouse Operations - Highlights •More •More efficient efficient purchasing distribution •More •Streamlined efficient operations operations
Slide 20: Warehouse Operations
Warehouse Operations • New 4.100 m2 warehouse for refrigerated and frosen goods in Korngarðar • Estimated building cost ISK 1.500- 1.600 million • The land in Korngarðar is owned by Hagar
Slide 21: Bónus Hagkaup Olís stores
Online store Bónus Hagkaup Olís stores HoReCa Others Warehouse and Olís distribution ODR
Slide 22: Refinancing
Refinancing • All long-term debt of Hagar and subsidiaries is being refinanced • Meetings have been held where ideas have been presented by Hagar regarding the loan composition • Comparison of offers will be submitted to the Board of Hagar • The current interest-bearing debt of Hagar is refinanced,
Slide 23: Agreement on Daily Settlement of Credit Cards
Agreement on Daily Settlement of Credit Cards • Negotiations on a new agreement for Hagar and subsidiaries in the final stages Debit and credit cards • The arrangement will be coordinated for Hagar and subsidiaries and the settlement of credit cards will occur daily • The agreement provides more fav
Slide 24: Property and Land owned by Hagar
Property and Land owned by Hagar Property M2 in property Capital Area Rural Area valuation 2019 Hagar 27.939 21.117 6.822 4,9 ma Olís og DGV 16.046 5.290 10.755 3,4 ma Total 43.985 26.407 17.577 8,3 ma
Slide 25: Property and Land owned by Hagar
Property and Land owned by Hagar Size of land in m2 Hagar 97.793 Olís og DGV 235.505 Total 333.298 • Opportunities, cf. • Development projects, Stekkjarbakki etc. • Klettagarðar, 14.000 m2 land, 22.000 m2 construction rights
Slide 26: Development Projects
Development Projects • Stekkjarbakki, Reykjavík • Lundur, Kópavogur • Sæbraut, Reykjavík • Fjallkonuvegur, Reykjavík • Ánanaust, Reykjavík
Slide 27: Stekkjarbakki
Stekkjarbakki • Conversation with the City council • Fully owned by Hagar • Location near the BRT network • Development ideas • Bónus store • ÓB station • Up to 400 apartments • Composition of apartments according to Reykjavík policy recarding compact neighbourhood development
Slide 28: Self-service registers
Self-service registers • Pleased costumers • Increased performance • Efficient during peak time • Usage 34%-52% of total number of sales • Already set up in 7 Bónus stores and 2 Hagkaup stores • Increased by 5 Bónus stores and 4 Hagkaups stores this year
Slide 29: Reykjavík Pharmacy
Reykjavík Pharmacy • Hagar has signed a contract for the purchase of 90% of shares in Reykjavík Pharmacy • The agreement is subject to the approval of the Icelandic Competition Authority
Slide 30: 20 30 been successful
20 30 been successful
Slide 31: Key points
Key points • Labor markets are creating uncertainty and turbulance • Dividend policy unchanged • Effect of lease agreements on the balance sheet, IFRS 16, will be published in Q4 • A bill has been proposed that authorizes the sale of non-prescription medicine in stores
Slide 32: Thanks for your audience
whagar Thanks for your audience