Hagar Hf. · OMXICE:HAGA
Hagar Hf — FY2019/20 Earnings Presentation
44 slides from Hagar Hf's earnings presentation, May 19, 2020
Slide 1: Investor Presentation May 19, 2020
Investor Presentation May 19, 2020
Slide 2: Consolidated Highlights
Consolidated Highlights Comprehensive income for the year is ISK 3.054 m, or 2,6% of sales Earnings per share is ISK 2,54 Sales for the year is ISK 116.357 m Gross profit for the year is 22,2% EBITDA for the year is ISK 8.890 m Total assets are ISK 62.708 m at year end Cash and cash eq
Slide 3: Statement of Comprehensive Income
Statement of Comprehensive Income Q4 2019/20 Q4 2018/19 2019/20 2018/19 01.12-29.02 01.12-28.02 01.03-29.02 01.03-28.02 Sales 28.613 27.924 116.357 84.179 Cost of goods sold (22.179) (21.469) (90.551) (64.172) Gross profit 6.434 6.455 25.806 20.007 Gross profit % 22,5% 23,1% 22,2% 23,8% Other operat
Slide 4: Operating Segments
Operating Segments Retail chains Elimination Application of 2019/20 and warehouses Olís entries IFRS 16 Total Sales 80.393 36.847 (883) -- 116.357 Other operating income 442 67 (25) -- 484 Total segment revenue 80.835 36.914 (908) -- 116.841 Total segment operating expenses (76.015) (35.082) 908 2.2
Slide 5: EBITDA Bridge
EBITDA BRIDGE - ISK million - 2.238 1.635 527 8.890 4.490 EBITDA 2018/19 Effect of retail chains and Effect of Olís IFRS 16 Impact EBITDA 2019/20 warehouses
Slide 6: Sales and EBITDA
Sales and EBITDA - ISK million - Sales EBITDA EBITDA% 140.000 9,0% 116.357 8,0% 120.000 7,5% 7,6% 7,0% 7,2% 100.000 5,6% 6,0% 84.179 78.366 80.521 73.895 5,3% 80.000 5,0% 60.000 4,0% 3,0% 40.000 2,0% 20.000 1,0% 8.890 5.659 6.024 4.139 4.490 0 0,0% 2015/16 2016/17 2017/18 2018/19 2019/20
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% 23,8% 23,5% 22,2% 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 2019/20
Slide 8: Cost ratios
Cost ratios Salaries & other operating expenses 12,0% 11,0% 10,9% 10,3% 10,4% 10,0% 9,6% 9,4% 9,7% 9,2% 9,3% 9,3% 9,0% 9,1% 8,7% 8,7% 8,7% 8,6% 8,4% 8,5% 8,3% 8,2% 8,2% 7,9% 7,9% 8,0% 6,0% 4,6% 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 2018/19 201
Slide 9: Number of stores
Number of stores Specialty stores and pharmacies 5 ÓB stations 42 Olís stations 28 Grocery stores 40 0 5 10 15 20 25 30 35 40 45
Slide 10: Balance Sheet
Balance Sheet
Slide 11: Balance Sheet
Balance Sheet 29.02.2020 28.02.2019 Assets Non-current assets 47.554 34.896 Current assets 15.154 15.955 Total assets 62.708 50.851 Equity and liabilities Share capital 1.189 1.213 Other equity 23.397 23.066 Capital and reserves attributable to owners of Hagar hf. 24.586 24.279 Non-controlling inter
Slide 12: Cash Flows
Cash Flows Q4 2019/20 Q4 2018/19 2019/20 2018/19 01.12-29.02 01.12-28.02 01.03-29.02 01.03-28.02 Net cash provided by operating activities 1.153 1.206 9.828 2.882 Net cash used in investing activities (2.657) (465) (5.221) (6.249) Net cash (used in) from financing activities 371 (778) (3.111) 3.881
Slide 13: Cash Flows 2019/20
Cash Flows 2019/20 - ISK million - -5.221 9.828 -3.111 2.232 736 Cash at the beginning of Net cash from Net cash used in Net cash from financing Cash at the end of the the year operating activities investing activities activities year
Slide 14: Changes in Equity
Changes in Equity Non Share Legal Restricted Retained controlling Share capital premium reserve reserve earnings Total interests Total equity Equity at March 1, 2019 1.213 5.023 303 5.092 12.648 24.279 -- 24.279 IFRS 16, effects of implementation (559) (559) (559) Purchased own share (24) (1.006) (1
Slide 15: Equity
Equity - ISK million - Equity Equity ratio 30.000 70,0% 61,1% 57,8% 60,0% 25.000 24.587 55,1% 24.279 50,0% 47,7% 20.000 40,0% 39,2% 17.412 17.957 15.000 16.368 30,0% 10.000 20,0% 5.000 10,0% 0 0,0% 2015/16 2016/17 2017/18 2018/19 2019/20
Slide 16: Refinancing
Refinancing
Slide 17: Bond Issue
Bond Issue Successful bond issue that ensured the company‘s refinancing Excess demand for Hagar‘s bonds Two bond series were issued, indexed and non-indexed. ISK 8.000 m in total ISK 5.500 m indexed with fixed nominal rate of 2,8% ISK 2.500 m non-indexed with fixed nominal rate of 4,65%
Slide 18: Loans and Borrowings at Year End
Loans and Borrowings at Year End Non-current Amounts are in ISK million liabilities Current liabilities Total CPI-linked bond issue 5.270 183 5.453 Non-indexed bond issue 2.500 - 2.500 Non-indexed non-current loans 4.412 259 4.671 Credit line – USD - 1.273 1.273 Total loans and borrowings 12.182 1.7
Slide 19: Borrowings
Borrowings - ISK million - Net interest bearing debt x EBITDA 14.000 3,0 2,7 12.000 2,5 12.289 11.665 10.000 2,0 8.000 1,5 6.000 1,3 1,0 4.000 0,7 2.766 0,5 2.000 0,2 0,1 701 1.279 0 0,0 2015/16 2016/17 2017/18 2018/19 2019/20
Slide 20: Key projects of the year
/ Key projects of the year
Slide 21: Merger of Hagar and Olís
Merger of Hagar and Olís The biggest integration projects are associated with organisational changes and housing Warehouse operations were the biggest single project Purchases for products and services Moving and coordination of Olís and Hagkaup offices Early savings for housing will be IS
Slide 22: New Warehouse
New Warehouse • Warehouse for refrigerated and frozen goods in Korngarðar – 4.440 m2 • Will be put into operation in November 2020 • Increased efficiency in warehouse operations and distribution • Lease payments decrease by approx. ISK 50 m on a early basis, with effect from next operating year
Slide 23: Warehouse operations have been simplified
Warehouse operations have been simplified. Aðföng has taken over warehouse operations for Olís, as well as operations for Hýsing and Ferskar kjötvörur.
Slide 24: Bónus leads the convenience market
Bónus leads the convenience market About a year ago, three Bónus stores were sold in accordance with an agreement with the Icelandic Competition Authority. Since then, Bónus has opened two new stores Increase in sales in Bónus is 12% from January 2020 to March 2020, in spite of fewer stores
Slide 25: New Olís and ÓB stations opened
New Olís station opened in Varmahlíð and service center renewed New ÓB station opened in Vík í Mýrdal in September 2019 New ÓB station opened at Sjafnargata in Akureyri in February 2020
Slide 26: Deployment of self-service solutions
Deployment of self-service solutions has been extremely successful Deployment finished in 14 Bónus stores and 7 Hagkaup stores, total of 21 stores Deployment planned in 7 Bónus stores and 1 Hagkaup store during this operating year Increased performance during peak hours Increased operational
Slide 27: New real estates owned by Hagar
New real estates owned by Hagar Eiðistorg in Seltjarnarnes where Hagkaup is located, total 4.211 m2 (Q4 2019-2020) Bjarkarholt in Mosfellsbær. Bónus store that is total 1.660 m2 (Q4 2019-2020) Hagkaup store in Akureyri, total 2.173 m2 (Q2 2020-2021) In addition, construction of a new warehou
Slide 28: Reykjavíkur Apótek became part of the group
Reykjavíkur Apótek became a part of the group in September 2019 New pharmacy opened in Skeifan in February 2020 Further development ahead
Slide 29: Reykjavíkur Apótek in Skeifan
Reykjavíkur Apótek in Skeifan
Slide 30: Mjöll Frigg became part of the group
Mjöll Frigg became a part of the group in January 2020 An important part of the restructuring of warehouses, mainly due to bottling and mixing
Slide 31: Great increase in sales for Mjöll Frigg products due to COVID-19
Great increase in sales for Mjöll Frigg products due to COVID-19
Slide 32: Hagkaup.is back to business
Hagkaup.is back to business Online store with groceries the first step Hagkaup celebrated its 60th anniversary in 2019
Slide 33: Útilíf online store opened
Útilíf online store was opened for business in the operating year
Slide 34: Alcohol sales have been successful
Alcohol sales have been successful Aðföng operates the project through Vínföng Prodicted sales during this operating year is approx. ISK 750 m Now, approx. 113 brands Good products for a good price Fifth largest in beer of 44 sales agents Fourth largest in red wine of 44 sales agents
Slide 35: Environmental and Social Projects
Environmental and Social Projects
Slide 36: Carbon offset and a contract with Klappir Grænar lausnir
Carbon offset and a contract with Klappir Grænar lausnir The goal is to achieve measurable results in environmental affairs and sustainability Bónus was the first chain store to offset its carbon footprint Olís in good cooperation with The Soil Conservation Service in Iceland This operating
Slide 37: SAMANBURDBUR
SAMANBURDBUR MILLI 2018-2019 14% 4% endurvinnsla ge e =e BONUS VAR FYRSTA MATVORUVERSLUNIN A iSLANDI AD urgangur KOLEFNISJAFNA REKSTURINN Oo A. a Kawistie
Slide 38: Community projects support
Companies within the group are very active in supporting various community projects
Slide 39: Development Projects
Development Projects
Slide 40: Development proposals for Reykjavík sites
• Full-blown proposals were handed to the negotiation committee of Reykjavík in June 2019. • The proposals are in full accordance with the city‘s policy of decreasing the number of gas stations, the compact neighbourhood development and „the merchant on the corner“ • The proposals take into account
Slide 41: COVID-19
UTILI! qysuuiuinii
Slide 42: COVID-19
COVID-19 • No infections within grocery stores • Frontline workers are heroes • Good collaboration with authorites • Product supply ensured • Great work within stores and warehouses • Great increase in sales with groceries but cost addition • Great sales decrease at Olís • Considerable decrease in c
Slide 43: Q1 2020/21 – The effect of COVID-19 and more
Q1 2020/21 – The effect of COVID-19 and more • Hagar has not issued an EBITDA budget for the operating year of 2020-21 • There is still great uncertainty about the effect COVID-19 will have on operations during a new operating year • In total, the financial impact is negative for the first quarter o
Slide 44: Thank you
Thank you