Q1 2020 Results Presentation to Investors and Analysts
Q1 2020 Results Presentation to Investors and Analysts We are Iceland Seafood
Iceland Seafood International is proud of its strong heritage and history and Q1 2020 Results Presentation to Investors continues to build on that foundation, and Analysts to become a respected industry leader The Union of Icelandic The Herring Board Samband of Iceland Armengol Merger : SÍF and SÍF Plc founds Iceland Tros IS Barraclough Fish Producers (SÍF) Founded in 1935 for establishes a seafood Spanish Iceland Seafood Plc. Seafood International The first company in Acquired in 2010 and Founded in 1932 for the export of salted division for export of company purchased Including the Herring in order to take over exporting fresh fish marks the beginning of export of salted fish herring from Iceland frozen seafood in 1999 Board, under the name all export and sales of from Iceland became a value added products SIF Plc. marine products part of Iceland operations in the UK Seafood. 1932 1932 1957 1999 1999 2004 2008 2010 2012 2016 2018 2018 2019 2020 2020 Havelok First North listing Oceanpath Solo Seafood Main Market listing Elba Seafood Iceland Seafood UK Founded as a joint Iceland Seafood listed Purchased in Purchased in 2018, Iceland Seafood Purchased in 2020, Merge of the two venture, Havelok today on the First North 2018, Oceanpath is the creating a strong International Elba is a great addition Iceland Seafood's UK is a leading seafood Iceland market largest seafood integrated company in lists its shares on to well positioned S- based companies supplier to UK provider in the Irish the Southern the Nasdaq Iceland European operation Havelok Ltd and foodservice retail market European market Main Market Iceland Seafood Barraclough in one 3
Iceland Seafood in numbers Q1 2020 Results Presentation to Investors and Analysts +448m 11,3m 38.3% € Annual revenues in 2019 Normalised PBT 2019, Equity ratio 38.3% at year end 2019 up from €10.8 proforma in 2018 up from 30.6% in 2018 Global value added Seafood producer and 12 3000+ 1.1m sales and marketing Businesses in 8 countries Customers across 45 countries Meals sold every day company 7 +660 100.000 value added factories employees metric tons of products sold 4
UK merger project on track despite external callenges Q1 2020 Results Presentation to Investors and Analysts Investment in new Merger project on Commercial production and track despite discussions with key coldstore facility for challenges due to UK retail customers on merged UK Operation Covid19 track • A 10.000m2 facility in Grimsby • Havelok and IS Barraclough will be • In addition to synergies acquired in beginning of March, merged during this year under one associated with the merger including three processing halls and leadership team and a single site, there will be a room for a 2.000MT coldstore capacity. Total • In order to be the sole shareholder significant growth when facility investment of £5.0 -6.0m including of the merged entity, a 33% is up and running, refurbishment and machinery to minority share in Havelok was Product range will reflect • fully utilize its potential, acquired in beginning of March, current offerings but on a Havelok renamed to Iceland larger scale, • Coldstore up and running from • Seafood UK at end of April. • Commercial discussions taking beginning of June, estimated Legal merger with IS place with key retailer annual cost savings of c.a. Barraclough to be finalised customers in UK, €0.5m based on current during the year, • Positive impact from synergy operation, • One finance team in the new creation and revenue growth • Refurbishment of production office premises from beginning estimated to come through facility on track with the aim of of June, from Q1 2021. starting production in Q4 2020. Will create a significant player in • Targeting to have all the market, with stronger buying, production in a single location production and marketing power. in Q1 2021, Considerable synergies to be created e.g. in overhead, production, sourcing and coldstore. 5
Benefits of strong merged entity in S-Europe evident in the current situation Q1 2020 Results Presentation to Investors and Analysts IS Iberica production of Acquisition of Elba Significant increase in light salted cod in a finalised in Q1 2020 production of Achernar single location from • Closing of transaction 21 • Investment in increased Feb 2020 February 2020, capacity finalized early December 2019, Immediate steps taken to • • The merged entity IS Iberica integrate operation with IS • Production in Q1 2020 of operating from January 1 st 2020, Iberica, 6.820MT was up 60% from same time 2019, Production of light salted cod • i. Joint management team with IS Iberica, former CEO and CFO has been moved to a single • JV project on squid going well resigned prior to acquisition location in Barcelona from with two landings in Q1 and the ii. Purchasing managed by IS Iberica February 2020, third landing in Q2, commercial team • Restructuring of Ecomsa • Second phase of the iii. Actions taken to leverage marketing, finalised in February, now investment is slightly delayed distribution and production focused on local distribution in due to the situation and will be capabilities Andalusia. This operation finalized in Q3, with a 800 MT Acquisition strengthens Iceland • temporarily closed due to coldstore up and running from Seafood‘s sourcing network Covid19, that time. Will improve with GPG Seafood and Icemar flexibility in sales and reduce • The merged entity in good becoming shareholders in storage costs. position to manage operation Iceland Seafood. effectively in the current situation, Disruptions in production, • logistics etc are causing a delay in synergy creation from the merger. 6
Negative short term impact of COVID-19 Mid-long term impact uncertain Q1 2020 Results Presentation to Investors Create interesting growth opportunities and Analysts Results in Q1 were marked by the The financial and operational outbreak of Covid19 and actions taken strength of Iceland Seafood has to control the outbreak and Q2 will be enabled the company to manage the severly impacted. The Group base situation effectively. Among key scenario expect sales to start to actions taken are: recover in Q3 and to be on track in Q4 1. Appropriate contingency plans have been implemented within group businesses with focus on Lion’s share of sales in S -Europe are to the HORECA • health and safety of employees and to secure sector. Around 1/3 of sales in UK are to the continuity of operation, Foodservice sector. Both sectors are significantly impacted by the situation, 2. Risk management controls have been tightened, with focus on key assets on the balance sheet, • Sales in S&D division have been c.a. 40% of normal receivables and inventories. Over 90% of the Group level, reduction in demand in all markets and receivables are credit insured, inventories mainly product categories, consist of frozen products, • Retail sales have been strong from Mid March which 3. Actions to secure liquidity and ongoing funding in has helped mitigating the impact, good cooperation with banks in Iceland and Spain. • Important steps have been taken in key markets to New long-term funding for operation in Spain ease restrictions and further steps to be taken in the secured in April, 3-5 year loans at 1.4-1.8% interest coming weeks, rate and total amount in excess of €17m. Actions • With important activities related to the foodservice were taken to improve headroom for the other part sector opening up (canteens, schools, restaurants, of the Group as well, hotels etc), sales in key markets are expected to 4. Leverage Iceland Seafood‘s strong position to act on improve in the coming weeks and months, opportunities that come up in the situation, both • Results in Q1 were marked ty the current situation with regards to short term opportunities related to and Q2 will be severely impacted as well. The Group sourcing and marketing and longer term strategic base scenario expect sales to start recover in Q3 and opportunities. to be on track in Q4. 7
Q1 2020 Results Presentation to Investors and Analysts Q1 2020 Results Financial performance
Unique combination of sourcing expertise and well positioned value added activities 1Q 2020 Results Presentation to Investors and Analysts Iceland Seafood International Profit before tax Turnover Executive management 2013 Value Added Value Added 2013 Sales & Distribution N-Europe S-Europe 26% 29% IS Iceland and IS Barracl aclough gh IS Ibérica 71% 74% IS Franc nce Havelok Elba 2019 IS Germany any Oceanp npat ath h Ecomsa msa 2019 15% IS USA Dunn‘s of Dublin Achern ernar ar 41% 59% Employees 85% 34 (5%) 241 (36%) 386 (58%) 3 (0.5%) Executive management & Group reporting: Sales & Distribution Value Added Sales & Distribution Value Added 9
Recommend
More recommend
