Slide 1: Third Quarter 2024 Presentation
Third Quarter 2024 Presentation 13. November 2024
Slide 2: Agenda
Agenda 1 Highlights and key figures 2 In brief 3 Property segment review 4 Industry segment review 5 Financials 6 Summary and outlook 2 BORGESTAD ASA
Slide 3: Highlights and key figures
Highlights and key figures Highlights Rolling LTM revenue and EBITDA development for the Group 2 1 Borgestad Groups profit before tax at MNOK 44.1 for Q3’24 compared to MNOK -29.4 in Q3’23. Revenue EBITDA % EBITDA margin 1 400 2 EBIT margin at 7.4 percent for Höganäs Borgestad Group LTM Q3’24 1 165
Slide 4: Agenda
Agenda 1 Highlights and key figures 2 In brief 3 Property segment review 4 Industry segment review 5 Financials 6 Summary and outlook 4 BORGESTAD ASA
Slide 5: Borgestad is an investment company focused on real estate and refractory
Borgestad is an investment company focused on real estate and refractory Real Estate Refractory Agora Bytom shopping center in Poland is the Höganäs Borgestad is a manufacturer largest investment of the Group, accounting and supplier of refractory quality for over half of the balance sheet products,
Slide 6: Borgestad to be an industrial investment company with significant operational improvement potential
Borgestad to be an industrial investment company with significant operational improvement potential Strategy Key tools • Borgestad ASA is an investment company, where The right team Real Estate and Refractory constitute the two most significant areas of operation • Continually improve operations in
Slide 7: Agenda
Agenda 1 Highlights and key figures 2 In brief 3 Property segment review 4 Industry segment review 5 Financials 6 Summary and outlook 7 BORGESTAD ASA
Slide 8: Agora Bytom deliver increased revenue and EBITDA
REAL ESTATE: AGORA BYTON Agora Bytom deliver increased revenue and EBITDA Latest trends and developments Revenue development Growth NOKm • Stabilized operations after a year with many 11% 14% 4% 17% 20% upgrades by tenants. 69,1 72,3 60,6 • Focus on increasing margins, by turnover 16,2 19,4 increase
Slide 9: Continued improvement in retail sales and basket, and the Polish economy has a positive trend
REAL ESTATE: AGORA BYTON Continued improvement in retail sales and basket, and the Polish economy has a positive trend Retail sales (turnover 2021-2024) Comments PLN • Turnover among the tenants increased with 25 000 000 3.4 % in Q3’24 compared to Q3’23. 20 000 000 15 000 000 • With 4.7 million visi
Slide 10: Diversified tenant base
REAL ESTATE: AGORA BYTON Diversified tenant base Highly diversified tenant base Comments Highly diversified tenant base Lettable area per tenant Lettable area per tenant 100% Other WAULT by area: 3.33 years 59% Retail 4,8 % Office & 6,1 % 2% 3% 2% warehouse 4% 3% 4% 4% 8,7 % Fashion 5% 38,2 % WAULT
Slide 11: Agenda
Agenda 1 Highlights and key figures 2 In brief 3 Property segment review 4 Industry segment review 5 Financials 6 Summary and outlook 11 BORGESTAD ASA
Slide 12: Continued turnover and EBIT increase
REFRACTORY: HÖGANÄS BORGESTAD Continued turnover and EBIT increase Latest trends and developments Revenue development Growth NOKm1 • Focus on increased profitability and 2% 23% 0,1% 33,0% -5,6% decreasing working capital. • Adjusted1 last twelve months EBIT margin 1072,2 1074,0 870,8 increased from
Slide 13: Höganäs Borgestad's position in the Nordics – significant market share and strong development
REFRACTORY: HÖGANÄS BORGESTAD Höganas Borgestad’s position in the Nordics – significant market share and strong development in both turnover and EBIT Position in the Nordics LTM turnover and EBIT development Focus forward Revenue (SEKm) Market share % Revenue (SEKm) EBIT (SEKm) 49% • Increase profit
Slide 14: Targeting to maximize shareholder returns by realizing a well-defined buy-and-build strategy
REFRACTORY: HÖGANÄS BORGESTAD Targeting to maximize shareholder returns by realizing a well-defined buy-and-build strategy – illustration of path forward Shareholder value Further integration & synergy creation Continue to buy and build via acquisition of refractory service Max with Further integrat
Slide 15: Agenda
Agenda 1 Highlights and key figures 2 In brief 3 Property segment review 4 Industry segment review 5 Financials 6 Summary and outlook 15 BORGESTAD ASA
Slide 16: Income statement
FINANCIALS Income statement NOK 1,000 01.06- 30.09.2024 01.06- 30.09.2023 LTM 2024 2023 Revenue 359 830 372 443 1 152 952 1 141 366 COGS -175 637 -187 742 -530 030 -285 570 Personnel -99 304 -93 632 -384 370 -347 108 Other OPEX -21 557 -7 821 -102 279 -84 262 EBITDA 63 332 83 248 136 273 127 478 Dep
Slide 17: Balance sheet
FINANCIALS Balance sheet NOK 1,000 30.09.2024 31.12.2023 NOK 1,000 30.09.2024 31.12.2023 Equity 806 725 755 842 Intangible assets 117 480 124 010 Buildings, fixtures, machinery and vehicles 54 359 54 956 Provisions / reserve for liabilities 6 040 6 369 Investment properties 729 419 701 407 Secured d
Slide 18: Cash flow statement
FINANCIALS Cash flow statement NOK 1,000 01.01-30.09.2024 01.01-30.09.2023 Cash flow from operating activities before balance changes1 90 873 74 030 +/- Balance changes - 67 919 -6 449 Cash flow from operating activities 22 963 67 581 Payments to other investments -21 584 -13 840 Inflows from other
Slide 19: Agenda
Agenda 1 Highlights and key figures 2 In brief 3 Property segment review 4 Industry segment review 5 Financials 6 Summary and outlook 19 BORGESTAD ASA
Slide 20: Summary
Summary Strong operations in Q3 2024 • Höganäs Borgestad Group has an EBIT margin of 13.4 percent in Q3 and 8.9 percent YTD’24, compared to 7.8 percent and 3.5 percent in 2023 respectively. • Agora Bytom perform an EBITDA of MNOK 10.3 in Q3’24 compared to an EBITDA of MNOK 8.0 in Q3’23. • Profit bef
Slide 21: Outlook and priorities
Outlook and priorities Operational improvements are key focus and Borgestad expects gradual further improvement of profitability, capital efficiency and cash flow within its refractory business in 2025. Borgestad estimates revenue and EBITDA stable going forward for Agora Bytom. Review and investiga
Slide 22: Alternative performance measures
Appendix Alternative performance measures In order to enhance investors' understanding of the Group's performance the Company presents in this Presentation certain alternative performance measures ("APMs") as defined by the European Securities and Markets Authority its Guidelines on Alternative Perf
Slide 23: Gunnar Knudsensveg 144 3712 Skien Norway
Gunnar Knudsensveg 144 +47 35 54 24 00 3712 Skien post@borgestad.no Norway borgestad.no BORGESTAD ASA