Hagar Hf. · OMXICE:HAGA
Hagar Hf — H1 2019/20 Earnings Presentation
38 slides from Hagar Hf's earnings presentation, Oct 30, 2019
Slide 1: Hagar hf.
Hagar hf. • Finnur Árnason – October 30, 2019
Slide 2: First Half Results 2019/2020 Investor Presentation
Hagar hf. First Half Results 2019/2020 Investor Presentation
Slide 3: Consolidated Highlights
Consolidated Highlights • Comprehensive income for the period ISK 1.721 m or 2,9% of sales • Earnings per share ISK 1,42 • Sales for the period ISK 59.504 m • Gross profit for the period 22,0%. • EBITDA for the period ISK 4.523 m • Total assets ISK 60.031 m at the end of the period • Cash and cash e
Slide 4: Income Statement and Balance Sheet
Income Statement and Balance Sheet
Slide 5: Statement of Comprehensive Income
Statement of Comprehensive Income Q2 2019/20 Q2 2018/19 6M 2019/20 6M 2018/19 01.06-31.08 01.06-31.08 Change % 01.03-31.08 01.03-31.08 Change % Sales 30.914 19.142 11.772 61,5% 59.504 37.734 21.770 57,7% Cost of goods sold (24.244) (14.579) (9.665) 66,3% (46.402) (28.579) (17.823) 62,4% Gross profit
Slide 6: Operating Segments
Operating Segments Retail chains Elimination Application of First half 2019/20 and warehouses Olís entries IFRS 16 Total Sales 39.212 20.326 (34) -- 59.504 Other operating income 231 33 -- -- 264 Total segment revenue 39.443 20.359 (34) -- 59.768 Total segment operating expenses (37.167) (19.148) 34
Slide 7: Balance Sheet
Balance Sheet 31.08.2019 28.02.2019 Change % Assets Non-current assets 44.640 34.896 9.744 27,9% Current assets 15.391 15.955 (564) -3,5% Total assets 60.031 50.851 9.180 18,1% Equity and liabilities Share capital 1.202 1.213 (11) -0,9% Other equity 22.622 23.066 (444) -1,9% Total equity 23.824 24.2
Slide 8: Cash Flows and Equity
Cash Flows and Equity
Slide 9: Cash Flows
Cash Flows Q2 2019/20 Q2 2018/19 6M 2019/20 6M 2018/19 01.06-31.08 01.06-31.08 Change % 01.03-31.08 01.03-31.08 Change % Net cash provided by operating activities 2.442 1.473 969 65,8% 7.409 2.023 5.386 266,2% Net cash used in investing activities (688) (170) (518) 304,7% (1.498) (377) (1.121) 297,3
Slide 10: Cash Flows 6M 2019
Cash Flows 6M 2019 - ISK million - 7.409 -1.498 -3.888 2.759 736 Cash at the beginning of the period Net cash from operating activities Net cash used in investing activities Net cash from financing activities Cash at the end of the period
Slide 11: Changes in Equity
Changes in Equity Restricted Retained Share capital Share premium Legal reserve reserve earnings Total equity Equity at 1 March 2019 1.213 5.023 303 5.092 12.648 24.279 IFRS 16, effects of implementation (554) (554) Purchased own share (11) (453) (464) Comprehensive income for the period 1.721 1.721
Slide 12: Equity
Equity - ISK million - Equity Equity ratio 30.000 70,0% 61,1% 57,8% 60,0% 25.000 24.279 23.824 50,0% 20.000 17.412 17.957 47,7% 40,0% 15.000 39,7% 30,0% 10.000 20,0% 5.000 10,0% 0 0,0% 28.02.2017 28.02.2018 28.02.2019 31.08.2019
Slide 13: ROE - Return on Equity
ROE - Return on Equity 30,0% 25,0% 23,9% 20,0% 15,0% 13,5% 11,0% 10,8% 10,0% 5,0% 0,0% 2016/17 2017/18 2018/19 2019/20 6M
Slide 14: Key figures
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Slide 15: Sales and EBITDA
Sales and EBITDA - ISK million - Sales EBITDA EBITDA% 70.000 8,0% 7,8% 7,6% 7,0% 60.000 59.504 6,4% 6,3% 6,0% 50.000 40.712 5,0% 37.169 37.734 40.000 4,0% 30.000 3,0% 20.000 2,0% 10.000 3.180 1,0% 2.378 2.376 4.523 0 0,0% 6M 2016 6M 2017 6M 2018 6M 2019
Slide 16: Borrowings
Borrowings - ISK million - Net interest bearing debt x EBITDA 14.000 3,00 2,70 12.000 2,50 12.289 10.000 2,00 8.000 8.754 1,50 6.000 1,32 1,00 4.000 0,70 0,20 2.766 0,50 2.000 1.279 0 0,00 28.02.2017 28.02.2018 28.02.2019 31.08.2019
Slide 17: Gross Profit %
Gross Profit % 25,0% 24,4% 24,8% 24,8% 20,0% 22,0% 15,0% 10,0% 5,0% 0,0% 2016/17 6M 2017/18 6M 2018/19 6M 2019/20 6M
Slide 18: Cost Ratios
Cost Ratios Salaries & other operating expenses 12,0% 10,8% 10,6% 10,1% 10,0% 9,2% 7,9% 7,9% 8,0% 7,6% 6,0% 4,7% 4,0% 2,0% 0,0% 2016/17 6M 2017/18 6M 2018/19 6M 2019/20 6M Salaries Other operating expenses
Slide 19: Number of stores
Number of stores Specialty stores 3 ÓB stations 41 Olís stations 28 Grocery stores 41 0 5 10 15 20 25 30 35 40 45
Slide 20: Slide 20
Slide 21: Investments and Development Projects
Investments and Development Projects
Slide 22: The Goal is to increase the value of assets
The Goal is to increase the value of assets • In June, the company submitted fully-blown proposals to the negotiating committee of Reykjavik on the company's priorities for changing land use - First of all companies • The proposals are fully in accordance with the city's policy of decreasing the num
Slide 23: Proposal to the city of Reykjavik - Stekkjarbakki
Proposal to the city of Reykjavik - Stekkjarbakki • Up to 720 apartments • Shops and services, 3.500 m2 • Hagar operation: • Bónus store • Olís energy sales
Slide 24: Proposal to the city of Reykjavik – Fjallkonuvegur in Grafarvogur
Proposal to the city of Reykjavik – Fjallkonuvegur in Grafarvogur • Store that falls under the city's policy of "The Merchant on the Corner“ • Compact neighbourhood development, up to 12 apartments • Hagar operation: • Bónus store • Olís energy sales
Slide 25: Proposal to the city of Reykjavik – Skúlagata
Proposal to the city of Reykjavik – Skúlagata • Store that falls under the city's policy of "The Merchant on the Corner“ • Demand for Bónus store in the city center • Hagar operation: • Bónus store • Olís energy sales
Slide 26: Proposal to the city of Reykjavik – Egilsgata - Snorrabraut
Proposal to the city of Reykjavik – Egilsgata - Snorrabraut • Store that falls under the city's policy of "The Merchant on the Corner“ • Compact neighbourhood development, up to 40 apartments • Hagar operation: • Bónus store
Slide 27: Warehouse for Refrigerated and Frozen Goods in Korngarðar
Warehouse for Refrigerated and Frozen Goods in Korngarðar • 4.100 m2 • Estimated building cost ISK 1.600 m • Put into operation in November 2020
Slide 28: Refinancing
Refinancing Steingrímur H. Pétursson
Slide 29: Refinancing
Refinancing • The company has fully completed its refinancing. • Liabilities of the parent company in the amount of ISK 6.811 m on August 31, 2019 were fully paid up in early October. • Two bond series issued and sold. • HAGA021029 – ISK 5.500 m • CPI-linked bond series with 10-year maturity, quarte
Slide 30: Bond issue – Financial Covenants
Bond issue – Financial Covenants • Both bond series are subject to the same financial covenants • Interest cover > 2 • Equity ratio ≥ 25% • Calculation and confirmation of financial covenants shall be made at the time of publication of financial statements at year end and 6 months statements. • When
Slide 31: Bond Issue – Proforma Balance Sheet
Bond Issue – Proforma Balance Sheet Balance Sheet Loans and Borrowings after refinancing* Balance Sheet after 31.08.2019 Refinance refinancing Without lease Assets With lease liabilities liabilities Non-current assets 44.640 -- 44.640 Bank loans 4.702.389 4.702.389 Current assets 15.391 1.189 16.580
Slide 32: Loans and Borrowings after Refinancing
Loans and Borrowings after Refinancing Loans and Borrowings At August 31, 2019 Refinancing Total Maturity Bank loans 11.513.356 (6.810.967) 4.702.389 4,5 - 17 years CPI-linked bond issue - HAGA021029 -- 5.500.000 5.500.000 10 years Non-indexed bond issue - HAGA181021 -- 2.500.000 2.500.000 2 years T
Slide 33: Integration Projects
ae i! Integration Projects es
Slide 34: Integration Projects - Summary
Integration Projects - Summary Goal Status Projects regarding personnel and structure Projects regarding housing and structure Daily settlement of credit cards Purchasing and distribution Other items Total 600.000 513.500 In process 86.500 Investments to achieve synergy 600.000 273.000 • Largest amo
Slide 35: For further information
For further information
Slide 36: Changes in revenue units between years
Changes in revenue units between years • Bónus stores in Faxafen, Hallveigarstígur and Smiðjuvegur were sold • Bónus stores opened in Skeifan and Garðatorg • Bónus stores decreased by one between years • Bónus store in Mosfellsbær moved to a new location in September • Olís service stations at Háale
Slide 37: Statement of Comprehensive Income
Statement of Comprehensive Income Q2 2019/20 Q2 2018/19 6M 2019/20 6M 2018/19 01.06-31.08 01.06-31.08 Change % 01.03-31.08 01.03-31.08 Change % Sales 30.914 19.142 11.772 61,5% 59.504 37.734 21.770 57,7% Cost of goods sold (24.244) (14.579) (9.665) 66,3% (46.402) (28.579) (17.823) 62,4% Gross profit
Slide 38: Thank you
Thank you