Hagar Hf. · OMXICE:HAGA

Hagar Hf — Investor Presentation (May 2019)

28 slides from Hagar Hf's investor presentation, May 17, 2019

  1. Slide 1: Investor Presentation

    Investor Presentation 17th May 2019

  2. Slide 2: Consolidated Highlights

    Consolidated Highlights • Comprehensive income for the year ISK 2.317 m or 2,75% of sales • Earnings per share ISK 2,05 • Sales for the year ISK 84.179 m • Gross profit for the year 23,8%. • EBITDA for the year ISK 4.490 m • EBITDA for the year, excl. non-recurring expenses and income from Olis and

  3. Slide 3: Statement of Comprehensive Income

    Statement of Comprehensive Income Q4 2018/19 Q4 2017/18 2018/19 2017/18 01.12-28.02 01.12-28.02 01.03-28.02 01.03-28.02 Sales 27.924 19.811 84.179 73.895 Cost of goods sold (21.469) (14.886) (64.172) (55.577) Gross profit 6.455 4.925 20.007 18.318 Other operating income 179 50 340 294 Salaries and r

  4. Slide 4: Impact Factors for the year ended February 2019

    Impact Factors for the year ended 28 February 2019 + 4,1% Sales excl. Olís 4,1%. Sales incl. Olís 13,9% + 2,8% CPI • Average change in prices and exchange rates + 1,4% CPI, excl. housing Purchase index in foreign currencies + 6,0% (weakening of ISK)

  5. Slide 5: Grocery stores: number of customers and quantity

    Number of Grocery stores Qty customers Change between years % +0,9% +2,0%

  6. Slide 6: Gross Profit %

    Gross Profit % 25% 24,6% 24,8% 24,8% 24,1% 24,3% 24,0% 24,4% 24,8% 24,8% 23,8% 23,5% 20% 15% 10% 05% 00% 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

  7. Slide 7: Cost ratios: Salaries & other operating expenses

    Cost ratios Salaries & other operating expenses 12,0% 11,0% 10,9% 10,3% 10,0% 9,6% 9,4% 9,7% 9,2% 9,3% 9,3% 9,0% 9,1% 8,7% 8,7% 8,7% 8,6% 8,4% 8,5% 8,3% 8,2% 8,2% 7,9% 7,9% 8,0% 6,0% 4,0% 2,0% 0,0% 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Salaries Other

  8. Slide 8: Number of stores

    Number of stores Specialty stores 3 ÓB stations 40 Olís stations 28 Grocery stores 42 0 5 10 15 20 25 30 35 40 45

  9. Slide 9: Balance Sheet

    Balance Sheet 28.02.2019 28.02.2018 Assets Non-current assets 34.896 20.364 Current assets 15.955 9.020 Total assets 50.851 29.384 Equity and liabilities Share capital 1.213 1.103 Other equity 23.066 16.854 Total equity 24.279 17.957 Non-current liabilities 6.877 2.935 Current borrowings 8.431 771 O

  10. Slide 10: Changes in Equity

    Changes in Equity Share Share Legal Restricted Retained capital premium reserve reserve earnings Total Equity at 1 March 2018 1.103 -- 239 3.664 12.951 17.957 Comprehensive income for the period 2.317 2.317 Transferred to legal reserve 64 (64) -- Dividends paid, 1.024 ISK per share (1.129) (1.129) I

  11. Slide 11: Cash Flows

    Cash Flows Q4 2018/19 Q4 2017/18 2018/19 2017/18 01.12-28.02 01.12-28.02 01.03-28.02 01.03-28.02 Net cash provided by operating activities 1.206 1.485 2.882 2.938 Net cash used in investing activities (465) (389) (6.249) (2.574) Net cash used in financing activities (778) (1.106) 3.881 (2.616) Net i

  12. Slide 12: Sales and EBITDA

    Sales and EBITDA - ISK million - Sales EBITDA EBITDA% 90.000 8,0% 80.521 7,5% 84.179 77.143 7,3% 78.366 7,2% 80.000 7,0% 73.895 70.000 6,0% 5,6% 60.000 5,3% 5,0% 50.000 4,0% 40.000 3,0% 30.000 2,0% 20.000 10.000 1,0% 5.616 5.659 6.024 4.139 4.490 0 0,0% 2014/15 2015/16 2016/17 2017/18 2018/19

  13. Slide 13: Borrowings

    Borrowings - ISK million - Net interest bearing debt x EBITDA 14.000 3,0 2,7 12.000 2,5 10.000 2,0 8.000 1,5 6.000 1,0 4.000 0,7 0,3 0,5 2.000 0,1 0,2 0 0,0 2014/15 2015/16 2016/17 2017/18 2018/19

  14. Slide 14: Equity

    Equity - ISK million - Equity Equity ratio 30.000 70,0% 61,1% 57,8% 60,0% 25.000 53,5% 55,1% 47,7% 24.279 50,0% 20.000 40,0% 17.412 17.957 15.000 16.368 14.764 30,0% 10.000 20,0% 5.000 10,0% 0 0,0% 2014/15 2015/16 2016/17 2017/18 2018/19

  15. Slide 15: New income units

    New income units • New Bónus store at Garðatorg in Garðabær has opened. • Bónus in Mosfellsbær will move to a new location in the autumn months. • New ÓB station will open in Vík í Mýrdal within a few weeks.

  16. Slide 16: Key Projects

    Key Projects • Integration projects in progress • Restructuring of warehouse operations • Streamlining and synergy in core business and support service departments • Olís headquarters move to Skútuvogur 5 • Refinancing – finished in a few weeks • Settlement of credit cards and cash cards – new agree

  17. Slide 17: New Warehouse

    New Warehouse • New 4.100 m2 warehouse for refrigerated and frosen goods in Korngarðar • Increased construction rights already approved by the city council • Estimated building cost ISK 1.600 m • The land in Korngarðar is owned by Hagar • Increased synergy and streamlining of warehousing and distrib

  18. Slide 18: Pioneer in environmental issues

    Pioneer in environmental issues • First grocery stores to stop the sale of plastic carrier bags • Bónus and Hagkaup have leadership in the supply and sales of multy-purpose bags • First in Iceland that offer disposable products from biodegradable and environmentally friendly materials, e.g. knives,

  19. Slide 19: Samanburdur milli 2017-2018

    ‘SAMANBURDUR MILLI 2017-2018 4,1% 9,4% urgangur endurvinnsla

  20. Slide 20: Property and Land owned by Hagar

    Property and Land owned by Hagar Property M2 in property Capital Area Rural Area valuation 2019 Hagar 27.939 21.117 6.822 4,9 ma Olís og DGV 16.046 5.290 10.755 3,4 ma Total 43.985 26.407 17.577 8,3 ma

  21. Slide 21: Property and Land owned by Hagar

    Property and Land owned by Hagar Size of land in m2 Hagar 97.793 Olís og DGV 235.505 Total 333.298 • Opportunities, cf. • Development projects, Stekkjarbakki etc. • Klettagarðar, 14.000 m2 land, 22.000 m2 construction rights

  22. Slide 22: Development Projects

    Development Projects • Stekkjarbakki, Reykjavík • Sæbraut, Reykjavík • Fjallkonuvegur, Reykjavík • Ánanaust, Reykjavík • Lundur, Kópavogi

  23. Slide 23: Product Development

    Product Development NO HEFUR BRUN SALKERASOSA BAST [ HOPINN — ———1-1 PIPAROSTA EY raomasosa aa or

  24. Slide 24: Equal Pay Certification

    Equal Pay Certification In the operating year 2018/19 work began on equal pay certification for all of Hagar's subsidiaries, cf. amendment of the Act on Equal Status and Equal Rights of Women and Men no. 10/2008, which was passed in June 2017. Now all subsidiaries have implemented equal pay schemes,

  25. Slide 25: Projects Ahead

    Projects Ahead • Reykjavík Pharmacy – subject to the approval of the Icelandic Competition Authority • Mjöll Frigg – subject to the approval of the Icelandic Competition Authority

  26. Slide 26: Financial budget for 2019/20

    Financial budget for 2019/20 • EBITDA budget for 2019/20 is ISK 6.650 – 7.100 m • Investments (CAPEX) for 2019/20 is estimated ISK 3.000 m • The big projects are: new warehouse for refrigerated and frosen goods in Korngarðar, property and furnishings for Bónus in Mosfellsbær and Olís station in Vík

  27. Slide 27: Impact of IFRS 16 - Leases

    Impact of IFRS 16 - Leases • EBITDA increases by ISK 2.500 m • Depreciation increases by ISK 1.900 m • Finance expense increases by ISK 600 m • EBITDA budget for 2019/20, incl. IFRS 16 impact, is ISK 9.150-9.600 m

  28. Slide 28: Thanks for your audience

    Thanks for your audience

Hagar hf. — Investor Presentation (May 2019) on 6ix