Bewi Invest Asa · OSL:BINT
Bewi Invest Asa — KMC Properties — Investor Presentation (August 2021)
34 slides from Bewi Invest Asa's investor presentation, Aug 30, 2021
Slide 1: KMC Properties – A high yielding growth case in Northern European industrial and logistics real estate
KMC Properties – A high yielding growth case in Northern European industrial and logistics real estate Company presentation August 2021
Slide 2: Agenda
1 INTRODUCTION 2 INVESTMENT HIGHLIGHTS 3 TENANT OVERVIEW AGENDA 4 KEY FINANCIALS 5 APPENDIX 2
Slide 3: 40 years heritage in industrial properties has laid the foundation
40 years heritage in industrial properties has laid the foundation 2006 2012 2014 2018 BEWi acquires BEWi acquires BEWi operations Sites in Denmark and Genevad, Swedish company encompassing Sweden sold to KMC; 2020 effectively Thermisol along all Nordic facilitating acquisition of Further acquisitio
Slide 4: KMC Properties at a glance today
KMC Properties at a glance today Company description 43 ▪ Norwegian listed (OSE, ML: “KMCP”) real estate company formed in 2020 as a result of the combination Properties of real estate owned by Bekken and ABRA, a merger with Pesca Properties and a listing through the acquisition of Storm Real Estate
Slide 5: Going forward - Executing on strategy since Q4 2020
Going forward - Executing on strategy since Q4 2020 Company strategy and growth targets Selected growth initiatives since Q4 2020 Value Date Type Tenant Yield WAULT Country (NOKm)1 Apr-21 Acquisition BEWi Cellpack A/S 28 7.2% 12.0 May-21 Acquisition PTG Frionordica AS 44 7.1% 16.5 Jul-21 Greenfield
Slide 6: Agenda
1 INTRODUCTION 2 INVESTMENT HIGHLIGHTS 3 TENANT OVERVIEW AGENDA 4 KEY FINANCIALS 5 APPENDIX 6
Slide 7: KMC Properties investment highlight
KMC Properties investment highlight Strategic locations with proximity to key clients and resources in 1 established industry clusters Solid client base of successful companies with long 2 track records operating in attractive industries Long-term triple net contracts with low contract 3 extension r
Slide 8: Strategic locations with proximity to key clients and resources in established industry clusters
1 Strategic locations with proximity to key clients and resources in established industry clusters Overview of locations Mission critical facilities for tenants in strategic locations 1 Properties are ▪ Located in close proximity to Salmar, MOWI and Lerøy slaughtering and strategically located proce
Slide 9: Solid client base of successful companies with long track records
2 Solid client base of successful companies with long track records … % of net operating income1 Company overview Key customers / brands2 ▪ Founded in 1980 by the Bekken family ▪ European provider of packaging, components and insulation solutions ▪ Proven buy-and-build strategy with 19 deals execute
Slide 10: Significant exposure to the aquaculture industry favoured by global mega trends
2 … and significant exposure to the aquaculture industry favoured by current global mega trends Expected growing population and middle class leading to increased protein demand Consumer preferences Population growth (in billion people) Implied protein demand growth (in millions of tons) 3 out of 4 c
Slide 11: Long-term triple net contracts with low contract extension risk
3 Long-term triple net contracts with low contract extension risk Overview of the portfolio and tenants Tenant location Properties are strategically located in immediate proximity to tenant’s Tromsø Other key customers and tenants Total important fishing grounds # of properties 24 10 1 8 43 1 Trondh
Slide 12: Strong pipeline of attractive growth opportunities
4 Strong pipeline of attractive growth opportunities selected based on structured evaluation processes and strict criteria Pillars of value creation Description Pipeline & Growth Criteria ▪ Several ongoing projects, and high activity expected for the foreseeable future to accommodate activity Invest
Slide 13: Ability to execute attractive contracts with new and existing tenants
4 Ability to execute attractive contracts with new and existing tenants New packaging hub for BEWI at Hitra New production facility for Oppdal Spekemat New production facility for Slakteriet in Florø July 2021: Agreement with Oppdal Spekemat AS for the July 2021: Long-term lease agreement with BEWI
Slide 14: Supportive and committed owners, with strong operational and financial track record
5 Supportive and committed owners, with strong operational and financial track record Main owners Introduction Selected investments Property experience Norwegian investment company owned by the Bekken and Thoresen EBE Eiendom families, focusing on industrials, real (~41% ownership in KMC) estate, aq
Slide 15: KMC Properties investment highlight
KMC Properties investment highlight Strategic locations with proximity to key clients and resources in 1 established industry clusters Solid client base of successful companies with long 2 track records operating in attractive industries Long-term triple net contracts with low contract 3 extension r
Slide 16: Agenda
1 INTRODUCTION 2 INVESTMENT HIGHLIGHTS 3 TENANT OVERVIEW AGENDA 4 KEY FINANCIALS 5 APPENDIX 16
Slide 17: BEWi ASA is the largest tenant and represents ~48% of operating income
BEWi ASA is the largest tenant and represents ~48% of operating income 48% Introduction to BEWi ASA Extensive production and logistics platform ■ A A• Founded in 1980 by the Bekken family, who since inception has developed the company into becoming a significant packaging and insulation providers in
Slide 18: A provider of packaging and insulation solutions
A provider of packaging and insulation solutions 48% Diversified customer base Long-standing relationships Game-changing ESG focus Multiple end-markets Long-standing customer relationships Closing the loop for EPS Upstream and downstream combined Avg. length of customer relationships • BEWI is the f
Slide 19: The second largest tenant INSULA, focused on processing and sale of seafood products
The second largest tenant INSULA, focused on processing and sale of seafood products 20% Nordic seafood company Vertically integrated Solid financials2 Introduction to Insula Insula’s value chain Revenue (NOKm) ▪ Nordic seafood group focused on product development, value-added processing and sales o
Slide 20: Other tenants with strong market positions providing further diversification
Other tenants with strong market positions providing further diversification 10% 21% Grøntvedt Other selected tenants PSW Technology ▪ Grøntvedt is represented by two companies; Grøntvedt Pelagic 2019 revenue by country ▪ Part of the PSW Group AS, an international provider of products, AS and Grøntv
Slide 21: Agenda
1 INTRODUCTION 2 INVESTMENT HIGHLIGHTS 3 TENANT OVERVIEW AGENDA 4 KEY FINANCIALS 5 APPENDIX 21
Slide 22: Net asset value build-up
Net asset value build-up Net asset value build-up Comments 3,592 3,307 285 ▪ GAV is based on the market value of all properties in the portfolio valued by a third party appraiser, Cushman & Wakefield, as per end of Q2 2021 ▪ NAV based on market value adjusted for items not expected to crystallize in
Slide 23: External property valuation by Cushman & Wakefield
External property valuation by Cushman & Wakefield Total appraisal value and split per country1 Comments Russia Finland ▪ The market value of the property portfolio, as of 30.06.2021 was valued at NOK 3,167 million (excluding 4% 2% the Moscow property) Denmark Norway ▪ The Moscow property was valued
Slide 24: Run-rate figures: Key metrics
Run-rate figures: Key metrics Gross rental income (NOKm) – Q2 2021 reported to run-rate Net rental income (NOKm) – Q2 2021 reported to run-rate 246.3 233.6 7.9 61.6 7.9 58.4 53.7 51.7 -1.2 Q2 2021 reported Rental income Run-rate rental income Annualised run-rate Q2 2021 reported Rental income Proper
Slide 25: Run-rate figures: Key metrics (continued)
Run-rate figures: Key metrics (continued) EBITDA (NOKm) – Q2 2021 reported to run-rate IFPM (NOKm) – Q2 2021 reported to run-rate 208.6 115.5 10.9 7.9 71.5 -1.2 10.9 52.2 28.9 -36.9 7.9 -3.4 14.7 -1.2 Q2 2021 Rental Property Opex Fair value Run-rate Annualised Q2 2021 Rental Property Opex Net realis
Slide 26: Overview of bond and other financial liabilities
Overview of bond and other financial liabilities Bond terms Bank loan terms Weighted Issuer: Storm real Estate ASA Weighted average NOK average Covenant Current interest Interest terms years to Status: Senior secured million amortisation compliant? final plan (years) Maturity Issue size: NOK 1,850,0
Slide 27: Agenda
1 INTRODUCTION 2 INVESTMENT HIGHLIGHTS 3 TENANT OVERVIEW AGENDA 4 KEY FINANCIALS 5 APPENDIX 27
Slide 28: ESG at KMC Properties
ESG at KMC Properties To operate in a sustainable manner is important to KMC Properties and is seen as a prerequisite for the company’s long-term results and value creation. KMC will introduce a systematic approach towards understanding and managing the company’s impact on society and the environmen
Slide 29: Case study I: BEWi at Frøya
Case study I: BEWi at Frøya 48% The BEWi plant is the only Swedish supplier of EPP car parts Comments Salmar facility, Frøya BEWi Plant, Frøya The BEWi property at Frøya is strategically located in close proximity to Salmar, MOWI and Lerøy’s fish slaughtering and processing facilities, which are k
Slide 30: Case study II: BEWi at Skara
Case study II: BEWi at Skara 48% The BEWi plant is the only Swedish supplier of EPP car parts Comments Located close to Volvo’s production facility BEWi facility at Skara The BEWi production at Skara is located close to Volvo’s production facility The Volvo car factory is one of the company’s la
Slide 31: Overview of the properties (I/II)
Overview of the properties (I/II) Options Cost coverage Tenant Construction Lettable Contract Parent Put/ Property # Country County Address Type CPI adj. Extension Maintenance Insurance (parent) year area (sqm) end guarantee call3 tax 1 Wichjen Nieuweweg 235 1970-2007 31,949 Dec-35 100 % ✓ ✓ Tenant
Slide 32: Overview of the properties (II/II)
Overview of the properties (II/II) Options Cost coverage Tenant Construction Lettable Contract Parent Put/ Property # Country County Address Type CPI adj. Extension Maintenance Insurance (parent) year area (sqm) end guarantee call3 tax 21 Norrkøping Ramshallsvegen 21 1973-76 6,700 Jun-32 100 % ✓ Ten
Slide 33: Important information
Important information This presentation has been prepared by KMC Properties ASA ("KMC Properties ASA" or the "Company"). The presentation and the information contained herein may not be disclosed, taken away, reproduced, redistributed, copied or passed on, directly or indirectly, to any other person
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