Kvika Banki Hf · OMXICE:KVIKA
Kvika Banki Hf — Iceland Seafood International — IPO Roadshow (October 2019)
61 slides from Kvika Banki Hf's IPO roadshow presentation, October 2019
Slide 1: Main Market listing and Offering of new shares
We are Iceland Seafood Main Market listing and Offering of new shares Investor Presentation
Slide 2: Slide 2
Slide 3: Disclaimer
October 2019 Main Market Listing and Offering of new shares Disclaimer All information appearing in this presentation is in accordance with the best knowledge of Kvika banki hf. (also referred to as Kvika or the Financial Advisor) at any given time. The Financial Advisor is in no way liable for the
Slide 4: Strong Roots
October 2019 Main Market Listing and Offering of new shares Strong Roots Iceland Seafood International is proud of its strong heritage and history which the Company has built upon to become a respected industry leader The Herring Board Merger: SÍF and IS Barraclough First North listing Solo Seafood
Slide 5: Exciting future
October 2019 Main Market Listing and Offering of new shares Exciting future Vertically integrated value chain, unique sales and sourcing network 12 History of strong growth Businesses in 8 countries Acquisitions in 2018 transformational for the group 620 Employees Key projects will drive organic gro
Slide 6: Strong growth history expected to continue
October 2019 Strong growth history Main Market Listing and Offering of new shares expected to continue Group targeting €20m PBT 11.0-11.8 €431 m. 10.8 within the next 3-5 years Annual revenues 2018* 7.4 €10.8 m. 3.3 3.5 345.9 431.3 446.4 Normalised PBT 2.9 258.4 246.3 249.1 2018* 252.0 1.0 2014 2015
Slide 7: Iceland Seafood Financials Share Offering
Iceland Seafood Financials Share Offering
Slide 8: Seafood is the #1 consumed animal protein worldwide
October 2019 Seafood is the #1 consumed Main Market Listing and Offering of new shares animal protein worldwide Global consumption split per capita Seafood leads the way in global (Kg, 2018, %) Pork human consumption per capita Seafood 22% 37% with developing countries driving Seafood accounts for a
Slide 9: Seafood consumption will continue to grow alongside global trends
October 2019 Seafood consumption will continue Main Market Listing and Offering of new shares to grow alongside global trends Drive towards healthy living A growing middle class 20.8% A growing middle class is expected to 2015 2030 Having relegated health concerns in the aftermath of the 2008 recess
Slide 10: An integrated value chain
October 2019 Main Market Listing and Offering of new shares An integrated value chain Presence through strategic alliances and cooperation Strategic investor operations Iceland Seafood‘s operations Customers Iceland Seafood is in a unique position to benefit from close cooperation with strategic par
Slide 11: Diverse and valuable shareholder knowledge
October 2019 Diverse and valuable Main Market Listing and Offering of new shares shareholder knowledge Sjávarsýn ehf. 11% Other 31% Nesfiskur ehf. Sector investors provide Iceland Seafood with 10% valuable sourcing capabilities, sector knowledge and vertical integration 326 10% FISK-Seafood ehf. Sha
Slide 12: Diversified product range
October 2019 Main Market Listing and Offering of new shares Diversified product range Ready Meals Fresh Coated products Shellfish Smoked Fish Landfrozen Solutions for HORECA, Cod, Haddock, Wolffish, Skin- & boneless battered Shrimp, Langoustines, Salmon, Arctic Charr, Cod, Cod, Haddock, Wolffish, Ca
Slide 13: Operating divisions
Operating divisions
Slide 14: Strong combination of sourcing expertise and well positioned value added activities
Strong combination of sourcing October 2019 expertise and well positioned Main Market Listing and Offering of new shares value added activities Iceland Seafood International Executive management Sales & Value Added N- Value Added S- Distribution Europe Europe Each division and subsidiary possesses v
Slide 15: Profitability is driven by value added activities
October 2019 Profitability is driven by Main Market Listing and Offering of new shares value added activities Turnover Profit before tax 1 Sales & Distribution is the 29% 26% 2013 2013 71% 74% backbone of the Group and supports value added activities, 9% which drive profitability 39% 2018P 2018P 61%
Slide 16: Strong team of experienced sourcing and sales experts
October 2019 Strong team of experienced Main Market Listing and Offering of new shares sourcing and sales experts Sales and Distribution division • The Sales and Distribution division represents Iceland Seafood’s origins as a sales and marketing company with its main operations in Iceland along with
Slide 17: Close cooperation with retail and foodservice customers
October 2019 Close cooperation with retail and Main Market Listing and Offering of new shares foodservice customers Value Added Northern Europe division • Iceland Seafood’s Value Added N-Europe division has operations in Ireland and the UK through three subsidiaries o Retail focused IS Barraclough,
Slide 18: Excellent position within the largest market for Icelandic Cod
October 2019 Excellent position within the Main Market Listing and Offering of new shares largest market for Icelandic Cod Value Added Southern Europe division • The Value Added S-Europe division has operations in Barcelona and Malaga in Spain and in Argentina. The division is the largest importer a
Slide 19: Key projects
Key projects
Slide 20: 2018: Year of transformation
October 2019 Main Market Listing and Offering of new shares 2018: Year of transformation Acquisition of Oceanpath Acquisition of Solo Seafood Iceland Seafood acquired a 67% share in the leading fresh fish The acquisition of Solo Seafood, the owner of Icelandic Iberica was supplier to retailers in th
Slide 21: Key projects to further drive growth and efficiency
October 2019 Key projects to further drive Main Market Listing and Offering of new shares growth and efficiency Merger of Icelandic Investment in Opportunities for Iberica and IS Spain Achernar, Argentina automation • Magnús Jonsson appointed as MD • In 1H 2019, the board approved an • The company h
Slide 22: Iceland Seafood Financials Share Offering
Iceland Seafood Financials Share Offering
Slide 23: Encouraging growth driven by strategic acquisitions
October 2019 Encouraging growth driven by Main Market Listing and Offering of new shares strategic acquisitions Increase in revenue by Growth driven by P&L (EURm) 2016 2017 2018 2018P 2019E Sales 246.3 249.2 346.0 431.3 446.4 80% and PBT of 234%- strategic acquisition Net margin 19.0 19.5 29.0 41.0
Slide 24: Solid financial position, good platform for future growth
October 2019 Solid financial position, good Main Market Listing and Offering of new shares platform for future growth Comparative asset increase explained by working Equity ratio increasing from about 20% in 2017 capital requirements of value added segment to an estimated 40% by year-end 2019 • Tota
Slide 25: Strong profit growth driven by value added activities
October 2019 Strong profit growth driven by Main Market Listing and Offering of new shares value added activities Increased focused on value added activities Increased focus on value added activities a driver of increased margins and PBT • In 2016 value added activities accounted for EUR 76m or abou
Slide 26: Summary
Summary
Slide 27: Strong platform for continuing profit growth
October 2019 Strong platform for Main Market Listing and Offering of new shares continuing profit growth Continuing organic growth External Growth Scalable sourcing network and improved efficiency opportunities • The Group will continue its focus on • Synergies through integration of new • The Group
Slide 28: Iceland Seafood Financials Share Offering
Iceland Seafood Financials Share Offering
Slide 29: Shares and shareholders
October 2019 Main Market Listing and Offering of new shares Shares and shareholders Share capital Nasdaq First North • The total share capital of Iceland Seafood is ISK • The Company has been listed on Nasdaq First North 2,336,344,934 in nominal value since 25 May 2016 • Capital increase authorizati
Slide 30: Public Offering of new shares
October 2019 Public Offering of new Main Market Listing and Offering of new shares shares Purpose of the Registration of 225,000,000 new shares will be issued and Offering subscriptions sold by Iceland Seafood in a public offering, • Strengthen the Issuer's financial • Subscriptions shall be registe
Slide 31: Pricing and size benchmarks
October 2019 Main Market Listing and Offering of new shares Pricing and size benchmarks Order book A Order book B • A total of 30,000,000 Shares, or • Order book A will be for • A total of 195,000,000 Shares, or • Order book B is for subscriptions 1.17% of issued share capital in subscriptions rangi
Slide 32: Allocation and reductions
October 2019 Main Market Listing and Offering of new shares Allocation and reductions Order book A Order book B At the end of the subscription period the Issuer will • 1) Subscriptions in Order book A will • The main rule when allocating shares have sole discretion to decide the price at which the s
Slide 33: Appendix I General Information
Appendix I General Information
Slide 34: Sales and Distribution
Sales and Distribution
Slide 35: Sales & Distribution
October 2019 Main Market Listing and Offering of new shares Sales & Distribution Sales and Distribution offers its customers a full seafood solution by sourcing seafood from various Iceland Seafood ehf. suppliers, largely based in Iceland. The segment consists of a sales and marketing company in Ice
Slide 36: Sales & Distribution Subsidiaries
October 2019 Sales & Distribution Main Market Listing and Offering of new shares Subsidiaries Iceland Seafood ehf. Iceland Seafood Iceland Seafood Iceland Seafood France Germany USA Located in Reykjavik, IS Iceland is a leading Located in Boulogne-Sur- Located in Bremerhaven Located in Branford, com
Slide 37: Value Added
Value Added
Slide 38: Value Added N-Europe
October 2019 Main Market Listing and Offering of new shares Value Added N-Europe Iceland Seafood’s Value Added N- Iceland Seafood Barraclough Europe segment consists of four subsidiaries in the UK and Ireland. Iceland Seafood Havelok The segment is retail and foodservice focused and Iceland Seafood
Slide 39: Iceland Seafood Barraclough
October 2019 Main Market Listing and Offering of new shares Iceland Seafood Barraclough Processing Final Products Main customers are large retailers in the UK • Filleting, cutting and portioning, • Frozen for retail, ready to eat, further processed products, ready to cook sold under retailer packagi
Slide 40: Iceland Seafood Havelok
October 2019 Main Market Listing and Offering of new shares Iceland Seafood Havelok Processing Final Products Main customers are various foodservice vehicles in the UK • Filleting, cutting and portioning, • Skinless and boneless battered breading, ready to cook, ready to fish, breaded fish, frozen c
Slide 41: Iceland Seafood Oceanpath
October 2019 Main Market Listing and Offering of new shares Iceland Seafood Oceanpath Processing Final Products Main customers are large retailers in Ireland and fishmongers • Filleting, cutting and portioning, • Fresh fish on fishmonger tables packaging for consumers at supermarkets
Slide 42: Iceland Seafood Dunn's of Dublin
October 2019 Iceland Seafood Dunn’s of Main Market Listing and Offering of new shares Dublin Processing Final Products Main customers are large retailers in Ireland and fishmongers • Smoking, cutting and portioning, • Hot and cold Smoked salmon further processed products, and mackerel in various pac
Slide 43: Value Added S-Europe
October 2019 Main Market Listing and Offering of new shares Value Added S-Europe Iceland Seafood’s Value Added S- Iceland Seafood Spain Europe segment consists of four subsidiaries in Spain and Icelandic Ibérica Argentina, with an impending merger of Iceland Seafood Spain Iceland Seafood Ecomsa and
Slide 44: Iceland Seafood Spain
October 2019 Main Market Listing and Offering of new shares Iceland Seafood Spain Processing Final Products Diversified customer base mainly within the HORECA sector in S-Europe • Cutting, portioning and packing, • Frozen lightsalted cod products with focus on lightsalted and • Traditional wet salte
Slide 45: Icelandic Ibérica
October 2019 Main Market Listing and Offering of new shares Icelandic Ibérica Processing Final Products Diversified customer base mainly within the HORECA sector in S-Europe • Cutting, portioning and packing, • Frozen lightsalted cod products with focus on lightsalted cod • Argentinean red shrimp fr
Slide 46: Iceland Seafood Ecomsa
October 2019 Main Market Listing and Offering of new shares Iceland Seafood Ecomsa Processing Final Products Service work for Icelandic, direct distribution to Hotels and restaurants in the South of Spain • Cutting of frozen lightsalted cod, • Diversified product range that processing and packing of
Slide 47: Iceland Seafood Achernar
October 2019 Main Market Listing and Offering of new shares Iceland Seafood Achernar Processing Final Products Products distributed by Icelandic Iberica, into the HORECA sector in S-Europe and export to China • Factory specialized in processing • Argentinian red shrimp in of Argentinean red shrimp d
Slide 48: Sourcing and sales network
Sourcing and sales network
Slide 49: Iceland Seafood's sourcing network
October 2019 Iceland Seafood’s sourcing Main Market Listing and Offering of new shares network Sourcing network • Hand in hand with an extensive network of highly qualified professionals • Selected providers around the globe to extend our product offering • Close relationship with a solid global cus
Slide 50: CSR & Sustainability
October 2019 Main Market Listing and Offering of new shares CSR & Sustainability ISI believes that sustainability and responsible ocean believes Iceland Seafood stewardship is its and that sustainability corporate responsiblesocial ocean responsibility stewardship and is its actively develops corpor
Slide 51: Responsible Ocean Stewardship
October 2019 Responsible Ocean Main Market Listing and Offering of new shares Stewardship Iceland Seafood has set a global sourcing policy based on responsible ocean stewardship founded on the following principles: Commitment to supply sustainable seafood to Source only from fisheries in conformity
Slide 52: Iceland Seafood's sales Network
October 2019 Iceland Seafood’s sales Main Market Listing and Offering of new shares Network Sales network • Iceland Seafood works closely with a solid global HQ customer base that appreciates availability and fulfilment Operational presence • Headquarters in Iceland • Sales and Distribution in Icela
Slide 53: Presence at international fairs
October 2019 Main Market Listing and Offering of new shares Presence at international fairs Presence at international fairs/expos is a key factor in Iceland Seafood’s marketing strategy and enable the company to meet current and new customers, make sales and connections and showcase its products and
Slide 54: SF) @ |e] =~] o= | oe [oe] ee
SF) @ |e] =~] o= | oe [oe] ee
Slide 55: Board and Executive Management
Board and Executive Management
Slide 56: Strategic and diverse Board
October 2019 Main Market Listing and Offering of new shares Strategic and diverse Board Following the acquisition of Solo Seafood in 2018, Iceland Seafood underwent management changes where a new CEO and Board joined the Company Magnús Bjarnason Jakob Valgeir Flosason Liv Bergþórsdóttir Ingunn Agnes
Slide 57: Experienced Management
October 2019 Main Market Listing and Offering of new shares Experienced Management Bjarni Ármannsson Reynir Jónsson CEO CFO Bjarni has been the Group’s CEO Reynir Jónsson has been the since January 2019. Bjarni is a Group’s CFO since late 2013. significant investor in Iceland Seafood Before joining
Slide 58: Appendix II Financial Information
Appendix II Financial Information
Slide 59: Apparent margin increase of Value Added segment focus
October 2019 Apparent margin increase of Main Market Listing and Offering of new shares Value Added segment focus Increased focus on Value Added segments has Value Added segments generating an increased tripled net margin of the segments percentage of Group’s profits • Following most recent acquisit
Slide 60: Working capital and its indebtedness
October 2019 Working capital and its Main Market Listing and Offering of new shares indebtedness Market practice of shorter payment terms to Moderate indebtedness of inventory and suppliers explains working capital needs receivables creates flexibility • Inventory requirements and the fact that aver
Slide 61: Strong cashflow generation
October 2019 Main Market Listing and Offering of new shares Strong cashflow generation Growth requires Financial activities Cashflow (EURm) 2016 2017 2018 2019E working capital Operating profit 4.5 4.6 7.9 13.8 • As a part of the company’s value • With increased working capital Depreciation and amor
Iceland Seafood International — IPO Roadshow (October 2019) on 6ix