Presentation of Q1 2019 result Eggert Kristófersson, CEO 21 May 2019
CONSOLIDATED HIGHLIGHTS ISK 1,367 m 32.0% 0.8% EBITDA* Q1 2019 Equity ratio Return on equity ISK 1,329 m 32.3% 54.1% EBITDA Q1 2019 EBITDA*/Gross profit Salaries/Gross profit *EBITDA, excluding the cost related to the acquisition of Hlekkur ehf.
Financials
CONSOLIDATED OPERATIONS IN Q1 2019 EBITDA* EBITDA*/Gross profit 1.500.000 100,0% ISK 1.367 m 80,0% 1.000.000 60,0% Income statement Amounts are in ISK million Q1 2019 Q1 2018 Change % Chg. ISK 521 m 40,0% Gross profit 4.231 1.989 2.242 112,7% ISK 436 m 500.000 Lease revenue and operating income 372 106 267 252,7% 32,3% Salaries and personnel expenses -2.291 -1.094 1.196 109,3% 20,0% 22,6% 21,9% Sales expenses -258 -211 46 21,9% Other operating expenses -725 -389 337 86,6% - 0,0% EBITDA* 1.367 436 931 213,8% Q1 2017 Q1 2018 Q1 2019 Key Figures Gross profit from other goods Gross profit from fuel EBITDA*/Gross profit 32,3% 21,9% 10,4% 47,5% 5.000.000 Salaries/Gross profit 54,1% 55,0% -0,9% -1,6% ISK 4.231 m Earnings per share 0,16 0,31 -0,15 -49,5% 4.000.000 ISK 991 m 3.000.000 ISK 2.061 m ISK 1.989 m 2.000.000 ISK 3.240 m ISK 954 m ISK 1.008 m 1.000.000 ISK 1.052 m ISK 1.035 m - *EBITDA, excluding the cost related to the acquisition of Hlekkur ehf. Q1 2017 Q1 2018 Q1 2019
HIGHLIGHTS EBITDA EBITDA/Gross profit EBITDA EBITDA/sales EBITDA EBITDA/sales ISK 373 100.000 80,0% 400.000 80,0% m 400.000 80,0% 70,0% 350.000 70,0% 80.000 350.000 70,0% 300.000 60,0% 60,0% 300.000 60,0% 250.000 50,0% 50,0% 60.000 250.000 50,0% 200.000 40,0% 40,0% 200.000 40,0% 150.000 ISK 68 30,0% 40.000 30,0% 150.000 30,0% m 100.000 20,0% 20,0% 100.000 20,0% 50.000 10,0% 20.000 3,6% ISK 6 m 10,0% 50.000 10,0% - 0,0% 4,5% - 0,0% - 0,3% 0,0% Q1 2019 1F 2019 1F 2019 Sales Salaries/sales Gross profit Salaries/Gross profit Sales Salaries/sales ISK 80,0% 2.500.000 80,0% 8.319 10000000 80,0% ISK 8.000.000 m 70,0% 70,0% 1.920 m 2.000.000 8000000 60,0% 60,0% 60,0% 6.000.000 50,0% 50,0% 1.500.000 6000000 40,0% 40,0% 40,0% 4.000.000 ISK 46,3% 30,0% 4000000 1.000.000 30,0% 2.292 m 20,0% 2.000.000 20,0% 20,0% 2000000 500.000 12,1% 10,0% 10,0% 8,9% - 0,0% 0 0,0% - 0,0% 1F 2019 1F 2019 Q1 2019
HIGHLIGHTS • • Less sale than expected in Q1 2019 Positive development in Krónan‘s • More business activities in Q2 and Q3 operations and it‘s sales more than • A competitive market and difficult • Decrease in inventories from year-end due expected in Q1 2019 economic environment in Q1 2019 to decrease in business activities in JET fuel • A new store opened at Skeifan in Q1 2019 • Sale less that expected in Q1 2019 • Opportunities available via opening of • World market price development of fuel new stores had a positive impact on gross profit in Q1 2019
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Assets at the end of the period Current ratio 2,5 2,0 Statement of Financial Position (Assets) 2,0 1,9 Change % Chg. Amounts are in ISK million Q1 2019 Q1 2018 1,7 1,5 Goodwill 14.070 0 14.070 - 1,5 1,4 1,3 Other Intangible assets 4.519 206 4.313 2097,2% 1,0 1,1 1,1 1,1 Property and equipment 31.911 16.870 15.041 89,2% Leased assets 3.798 0 3.798 - 0,5 Investment properties 8.725 0 8.725 - Shares in associates 2.140 1.854 286 15,4% 0,0 Securities 137 132 5 4,0% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Non-current assets 65.301 19.062 46.239 242,6% Inventory turnover Inventories 7.092 3.252 3.840 118,1% Trade receivables 3.607 3.051 556 18,2% Receivable from related parties 0 155 -155 - Q1 2017 6,1 Other short-term receivables 791 391 400 102,1% Cash and cash equivalents 4.411 2.387 2.024 84,8% Current assets 15.900 9.236 6.664 72,2% Q1 2018 7,5 Total assets 81.201 28.298 52.903 187,0% Q1 2019 7,6 0 5 10
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Equity and liabilites at the end of the period Equity ratio 60% 50% 49,9% 49,0% 47,5% 46,7% 46,4% 46,4% 40% Statement of Financial position (equity and liabilites) Change % Chg. Amounts are in ISK million Q1 2019 Q1 2018 30% 33,4% 32,0% 32,0% Equity 26.021 13.873 12.148 87,6% 20% Payable to credit institutions 33.457 8.000 25.457 318,2% 10% Lease liabilities 3.327 0 3.327 - Deferred tax liabilities 3.894 1.474 2.421 164,2% 0% Non-current liabilities 40.679 9.474 31.205 329,4% Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Current tax 575 380 194 51,1% Payable to the Icelandic State 2.776 2.676 101 3,8% Average net interest bearing liabilities Average net interest bearing liabilities / EBITDA Payable to credit institutions 3.725 0 3.725 - Lease liabilites 492 0 492 - 25.000.000 15,00 ISK 22.569 m Trade payables 5.108 1.146 3.962 345,8% 13,00 Other short-term liabilities 1.825 749 1.075 143,5% 20.000.000 11,00 Current liabilities 14.501 4.951 9.550 192,9% 9,00 15.000.000 7,00 Total equity and liabilities 81.201 28.298 52.903 187,0% 10.000.000 5,00 ISK 5.055 m 3,00 ISK 4.154 m 4,1 5.000.000 1,00 1,5 1,1 0 -1,00 Q1 2017 Q1 2018 Q1 2019
CONSOLIDATED STATEMENT OF CASH FLOWS Amounts are in ISK million Q1 2019 Q1 2018 Change % Chg. Cash at the beginning of the year 4.267 2.800 1.467 52,4% Cash flows from operating activities 690 -252 942 -373,6% Investing activities -233 -163 -70 42,9% Financing activities -345 0 -345 - FX difference on cash 32 2 30 1357,9% Cash at the end of the period 4.410 2.387 2.024 84,8%
OPERATING SEGMENTS OF THE GROUP Segment EBITDA First quarter 2019 Other Elimination Application -76 Amounts are in ISK million Festi Krónan Elko Real estate Other entries of IFRS 16 Total Operating revenue 7.626 8.319 2.292 0 0 -7 0 18.230 Other revenue 64 3 0 1.010 692 -1.397 0 372 Real estate Total segment revenue 7.690 8.322 2.292 1.010 18.602 827 Total operating expenses of segments -7.622 -7.949 -2.286 -182 -768 1.404 131 -17.272 Elko Segment EBITDA 68 373 6 827 -768 1.404 131 1.329 6 Segment depreciation and amortisation -199 -125 -41 -216 -38 0 -102 -721 Fair value changes of investment properties 0 0 0 -45 0 0 0 -45 Krónan Share of profit from associates 0 0 0 0 60 0 0 60 373 Operating result of segments -131 248 -35 566 -746 1.404 29 623 Segment assets 16.442 8.952 3.521 36.496 13.657 -4.800 3.798 78.066 N1 68 Unallocted assets 0 0 0 0 0 0 0 3.135 Total assets 81.201
REAL ESTATE OPERATIONS OF THE GROUP Properties, key figures Q1 2019 NOI NOI % 900.000 200% NOI* ISK 827 m ISK 827 m 800.000 NOI ratio 82% 175% 700.000 Utization ratio 97% 150% LTV** 51% 600.000 125% Number of Festi's properties 90 500.000 100% 112 thousand m 2 Total square meters 400.000 82% 75% Own use 78% 300.000 50% Leased to third parties 22% 200.000 25% 100.000 0 0% 1F 2019 * Net operating income ** Loan-to-Value
SHARE PRICE DEVELOPMENT 140 120 100 80 60 40 20 0 01.01.2016 01.04.2016 01.07.2016 01.10.2016 01.01.2017 01.04.2017 01.07.2017 01.10.2017 01.01.2018 01.04.2018 01.07.2018 01.10.2018 01.01.2019 01.04.2019 Shareholders (10 largest) Market information Stefnir 11,7% Issued shares 330 M Lífeyrissjóður verslunarmanna 10,1% Market cap at the end of March 2019 ISK 37.077 M Gildi - lífeyrissjóður 8,9% Market cap at the end of March 2018 ISK 29.750 M Lífeyrissjóður starfsmanna ríksins A-division, B-division & S-division 7,4% Number of shareholders 846 Lansdowne Icav Lansdowne Euro 6,1% Annual return from the beginning of the year 28,8% Birta lífeyrissjóður 5,4% Annual return from 2015 32,6% Almenni lífeyrissjóðurinn 4,8% Landsbréf 4,1% Stapi lífeyrissjóður 4,0% Global Macro funds (Eaton) 2,9%
Position and outlook
POSITION AND OUTLOOK Intergration: Financial forecast for the year 2019 • Operations of N1 transferred to an operating company on 1.1.2019 • Unchanged estimate of EBITDA, expected to be in the range of ISK 7,400 to 7,700 million in 2019, excluding expenses related to the acquistion of Hlekkur, which has for the most • N1 warehose operations transferred to Bakkinn on 1.1.2019 part already been realised • Combining of headquartes at Dalvegur in 2019 EBITDA forecast 2019 ISK million Operations Real estate IFRS 16 Total • Realisation of synergy well underway Lower limit 3.750 3.150 500 7.400 Higher limit 4.000 3.200 500 7.700 Investments: Assumptions: • Annual consolidated investments of approximately ISK 1,900 million • Operations related to tourism expected to be similar to 2018 • • Operations of Dælan sold in Q1 2019 Uncertainty with respect to the number of tourists visiting the country 2019 • Turmoil in the oil market and ISK exchange rate can lead to fluctuations of gross margin • Real estate sold at the beginning of April in the amount of approximately and working capital ISK 2,500 million
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