Hagar Hf. · OMXICE:HAGA
Hagar Hf — Q2 2020/21 Earnings Presentation
31 slides from Hagar Hf's earnings presentation, Oct 29, 2020
Slide 1: Presentation of Q2 2020/21 results
Presentation of Q2 2020/21 results Finnur Oddsson, CEO Guðrún Eva Gunnarsdóttir, COO 29 October 2020
Slide 2: The 2nd quarter in a nutshell
The 2nd quarter in a nutshell ▪ Department store revenues and income from supermarkets increase. This is countered by a decline in sales by Olís that has no change in income from last year´s income ▪ Earnings improve compared with last year's according to all metrics, including gross profit, EBITDA,
Slide 3: Financial data
Financial data Q2 2020/21, ISK billion (change in ISK billion / percentage points from Q2 2019/20) 30.9 3.0 1.3 sales EBITDA net income 0.0 0.5 0.3 23.5% 14.0% 40.8% gross margin ratio salaries and cost-income equity ratio ratio 1.9% 0% 1.6%
Slide 4: Summary
Summary News from the operation Financial statement Strategy and goal 3
Slide 5: Hagar units
Hagar units ▪ 31 stores around the ▪ 8 stores ▪ Large net around the country country ▪ Increased growth in sales ▪ Decline in sales ▪ Increased growth in sales particularly specialty goods ▪ Significantly better operating ▪ Gross margin ratio below ▪ Turnaround regarding the results following headwi
Slide 6: The tasks during past months have been many-sided
The tasks during past months have been many-sided Powerful antiseptic Remodeled Increased self- measures stores service Measures for the Stronger supply environment chain
Slide 7: Powerful antiseptic measures
Powerful antiseptic measures ▪ Diverse measures have been adopted in order to ensure the safety of employees, customers and our partners ▪ Antiseptic measures take precedence in all stores and service-stations of Hagar ▪ Staff in the supply chain protected by dividing into different groups and areas
Slide 8: Remodeled stores
Remodeled stores ▪ Bónus is presently remodeling its older stores, in order to improve quality, furbish appearance and reduce energy use and carbon footprint ▪ Hagkaup has furthermore remodeled its stores in Seltjarnarnes and in Skeifan ▪ Examples of renovation are LED lighting, lids on coolers and
Slide 9: Increased self-service
Increased self-service ▪ Hagar stores have increased the number of self-check-out counters because of the customer satisfaction with shorter waiting time and larger activity space ▪ Self-check-out counters have now been installed in all Hagkaup food stores ▪ The major part of check-out counters at B
Slide 10: Measures for the environment
Measures for the environment ▪ Bónus maintains its leading role in environmental matters: − A participant in a country-wide effort for the collection and sowing of birch- tree seeds − The sponsor of the project "Free the shoreline around Iceland“ under the supervision of Hrafn Jökulsson and Veraldar
Slide 11: Stronger supply chain
Stronger supply chain ▪ A new warehouse for refrigerated and frozen good for Aðföng at Korngarðar is now close to being completed after speedy activity during the last months ▪ The installing of shelves and the final preparations are being completed - the building will be deployed in November ▪ The
Slide 12: Summary
Summary News from the operation Financial statement Strategy and goal 11
Slide 13: Good operating results and net income increased by 25%
Good operating results and net income increased by 25% Consolidated Statement of Comprehensive Income Q2 2020/21 (ISK billion) Q2 '20/21 Q2 '19/20 Δ %Δ ▪ Sales unchanged from the previous Sales 30,9 30,9 - - year Gross profit 7,3 6,7 +0,6 +9% ▪ Gross profit increases by 9% and the gross profit ratio
Slide 14: Good earnings in Q2 outweighs mostly poor earnings in Q1
Good earnings in Q2 outweighs mostly poor earnings in Q1 Consolidated Statement of Comprehensive Income 6M 2020/21 (ISK billion) 1H '20/21 1H '19/20 Δ %Δ ▪ Sales decreased by 1% between years Sales 59,2 59,5 -0,3 -1% during the first six months of the operating year but the gross profit is unchanged
Slide 15: Operating indicators change little compared to the last period
Operating indicators change little compared to the last period Key indicators of operation (Q1 2018/19 – Q1 2020/21) ▪ The wage ratio during the period Sales (billion ISK) Gross Profit (%) increased by 0.6 percentage points compared to last year Sales and 59,5 59,2 24,3 56,9 23,4 22,0 22,3 22,1 Gros
Slide 16: The performance of stores is strengthened but there is headwind in Olís
The performance of stores is strengthened but there is headwind in the operation of Olís Summary of operating segments 6M (ISK billion) 1H '20/21 1H '19/20 Δ %Δ Sales 43,4 39,2 +4,2 +11% ▪ Turnover of supermarkets and Growth 10,6% 3,9% +6,7% +170% department stores increased by approx. 11% and EBITD
Slide 17: Cash lowers in Q1 2020/21 by 1.3 ISK billion
Cash lowers in Q1 2020/21 by 1.3 ISK billion Cashflow statement 6M (ISK billion) 6M 2020/21 6M 2019/20 Change ▪ Change in assets connected to Profit for the period 1,2 1,7 -0.5 operations during last year can be linked to changes made in April 2019 regarding Adjustments 3,1 2,7 0.4 the settlement me
Slide 18: Continued strong economic position by the end of the period
Continued strong economic position by the end of the period Balance sheet 31 August 2020 (ISK billion) 31. 8. 29. 2. 31. 8. 2020 2020 %Δ 2020 Property, plant and equipment 23,1 22,0 +5% Borrowings 12,1 ▪ Fixed assets increased by ISK 1.1billion, because of investments in Intangible assets 10,5 10,5
Slide 19: Return on equity below compared periods but risk is limited
Return on equity below compared periods but risk is limited Key indicators of financial position (Q1 2018/19 – Q1 2020/21) ▪ Return on equity is 10.7% the past 12 Return on equity (%) Equity ratio (%) months. ▪ Equity ratio by the end of the period Sharehold 12,9 14,2 12,6 60,0 12,3 10,7 47,7 was 40
Slide 20: EBITDA guidance has been published and a buy-back programme has been approved
EBITDA guidance has been published and a buy-back programme has been approved ▪ Directors forecast ISK 8.1 to 8.6 billion EBITDA during the current operating year, compared with ISK 8.9 billion last year ▪ The Board of Directors has decided to commence a buy-back programme of the company's own share
Slide 21: Summary
Summary News from the operation Financial statement Strategy and goal 20
Slide 22: Finnur in Wonderland
Finnur in Wonderland Culture of change IT Discerning visitors Graphics: The Toon Planet (thetoonplanet.com) 21
Slide 23: The characteristics of Hagar are generally helpful but they may also disrupt
The characteristics of Hagar are generally helpful but they may also disrupt Size Experience Independence Strengths Weaknesses 22
Slide 24: Why does Hagar exist?
Why does Hagar exist? Community Employees Consumers Partners Owners 23
Slide 25: How do we generate consumer value?
How do we generate consumer value? ▪ Let us concentrate on convenience Let us concentrate goods, fuel and associated goods on what we are good at doing ▪ Let us start with the divestment of Útilíf and Reykjavíkur Apótek Let us make the ▪ Let us show Hagar's trademarks, brands whole stronger and labe
Slide 26: We have set goals for ourselves that we will measure
We have set goals for ourselves that we will measure in order to rate our success during the next six months Bring the consumer more for less Create a desirable workplace Return to the owners a fair return Promote an improved society
Slide 27: Prospects and status
Prospects and status Although there are challenges ahead ... ... has Hagar a strong foundation ▪ Earnings forecast in the range of 8.1 to 8.6 ▪ Strong economic and liquidity position billion ISK EBITDA during the current ▪ Strong market position for major units operating year on the convenience and
Slide 28: Questions?
Questions?
Slide 29: Price and the largest shareholders
Price and the largest shareholders Price 60 50 40 30 1.1.2016 1.7.2016 1.1.2017 1.7.2017 1.1.2018 1.7.2018 1.1.2019 1.7.2019 1.1.2020 1.7.2020 1.1.2021 Date Largest shareholders (1-5), shares held at end of 31.8.2020 Largest shareholders (6-10), share at end of 31.8.2020 ▪ Gildi - lífeyrissjóður (pe
Slide 30: Reservations
Reservations On behalf of Hagar we wish to point out that statements and information in this presentation are based as the case may be on the plans and estimates of the company's directors, but not on facts that may be verified at the publishing of the presentation or by any discussion by the compan
Slide 31: .hagar
h ; .hagar