Skel fjárfestingafélag

Investor Presentation • Feb 6, 2025

Investor Presentation 2024

Our mission is to develop opportunities, and target longterm value creation

3

2024

Performance in line with strategy

Kaldalón included in the OMXI index

Skagi is established and acquires Icelandic securities

Styrkás enters environmental services Sale of real estate development finalized SKEL's most valuable assets delivering results exceeding budget

First strategic foreign investment

Heimkaup and Samkaup expected to merge

Net profit 6,754 ISK m.

ISK bn.

Total assets Equity Earnings of unlisted assets

Cash and treasury bonds

ISK bn. 2.1 Earnings of listed assets ISK bn. ISK bn.

Portfolio

Total assets 60,570 ISK m.

7

Focus on transformations and increased profitability of listed assets

Listed Assets

Kaldalón

								Revenue increase of 48% Operating profit margin 79%
								Investment properties ISK 62.4	bn. 30.6.2024
					Kaldalón	listed on Nasdaq Iceland main market on November 16, 2023					Kaldalón -	part of the Nasdaq OMX Iceland
				ISK 30 bn. bond issuance framework		totaling	Issuance of listed bonds ISK 5,000 bn. at a 1.35-1.5% premium		Acquisition of Idea and	ehf. K190 hf.		Main Index
Kaldalón Real Estate company	transformed into a	Four objectives for listing on the main market							ISK	Investment properties 70.3 bn.
	1H 2022		1H 2023			1 H 2024						2026
			Transformation			Growth period						Future plans
2H 2021	SKEL acquires 17.4% in the company	2H 2022 Investment properties ISK 41.7 bn.	at year-end	market	2H 2023 All objectives achieved for listing on the main	Revenue increase of 83% Operating profit margin over	2H 2024	ISK 4	Issuance of a green bond series bn. at a 1.2% premium			The company intends to start dividend payments. Goal for investment properties to reach ISK 100 bn.
	Emphasis formulated, strategy presented, and infrastructure strengthened		Revenue increase 145% Operating profit margin over 80%		ISK	80% Investment properties 57.6 bn. at year-end	Buyback approved The company purchases 3% of its own shares					Value of 15.28% share
			Investment properties ISK	49.2 bn. 30.6.2023								4,619 ISK m.
											ROI

49.2%

Skagi
	and establishes SIV	VÍS expands its activities asset management	Merger of fjárfestingarbanki	VÍS and Fossar	Transformation from an established insurance company to a growth company in the financial market			VÍS and Íslandsbanki	sign a
Transformation of a century-old insurance company into a digital service compaby focusing on growth and sales		SKEL increases its stake in VÍS Total ownership	The company increased insurance products for the first time in 6 years 8.23%	sales of		Skagi acquires Íslensk verðbréf Assets under management ISK 220 bn.	Assets under management ISK 224	partnership agreement, providing special benefits to customers who do business with both companies bn.
Transformation of an insurance company	2H 2022		Building up additional pillars	2H 2023		Strategy development and organization of a financial conglomerate	2H 2024	Growth to achieve objectives
1H 2022		1H 2023				1H 2024			1H 2025
Total ownership	SKEL builds up a position in VÍS 7.31%		Change in board of directors New organization chart and executive team		Largest increase in individual insurance since 2009	operations	Net income from financial services grows by 86% Revenue from insurance grows by 10.4%
			The board of directors of VÍS has set a strategy that marks a certain watershed in the company's operation		A new group formed "Merger for progress"			Value of 8,23% share 3,390	ISK m.
		Attractive investment option ✓ Clear focus on growth ✓ ✓ ✓ activities	Sales-driven insurance company Active participant in investment		Insurance market Asset management Investment banking			ROI 25.1%	10

Corporate Services and Infrastructure

Styrkás

Acquisition of Klettur announced (equipment, tyres, machinery and maintenance services)		Styrkás established as a parent company of Skeljungur and Klettur with the vision of becoming a leading service company across all industries with 5 core divisions	Stólpi Gámar	Final purchase agreement on and related companies, with properties and sites Styrkás	signs an agreement to acquire Hringrás EBIT 2025B 1)
2F 2022	4F 2022		2H 2023	2H 2024	2,294 ISK m.
Building a leading B2B service company			Growth phase		List on Nasdaq Iceland 2027
	3F 2022	1H 2023	1H 2024
The mission is to extend services to the Icelandic corporate market through external and internal growth	Build on strong foundation and expand business though increased product offerings and services		Horn IV enters into an ISK 3,500 m. subscription agreement and acquires 29.5%	Operations are going well and group EBITDA in first half 2024 is 10% above budget
Triple Skeljungur's EBITDA (ISK 1,130 m.) and list on Nasdaq Iceland in 3-5 years	Focus on organic growth and targeted acquisitions and partnerships		Strong shareholders' agreement targeting listing in the stock exchange in 2027	The company's operations structure implemented	and Value of 63.4% share
	Creation of a leading B2B service company, focusing on 5 core sectors				12,969 ISK m.

Styrkás

"Establishing a leading B2B service company"

2,294 ISK m. EBIT1)

Margin

2025 Budget

Group

• Record performance across all segments, with group EBITDA ISK 2,649 m. (excl. IFRS).
• The Group's operating profit (EBIT) 4% above budget.
• Consolidated cash balance amounted to ISK 4.8 bn., with NIBD at ISK 1.8 bn. and the parent company's cash balance at ISK 2.8 bn.
• Record year in fuel sales, with volume growing 5%.

• Rental income increased by over 50%, reaching approximately ISK 1 bn.

• Record year in Scania sales and strong performance in CAT – both supporting future service revenues.

• New prefabricated housing market solutions were introduced to municipalities and developers.
• Construction of a new 30,000 sqm operational site for Stólpi and a new 1,500 sqm workshop and office facility is on schedule, with relocation planned for mid-2025.
• Property sites, building rights, and real estate provide significant room for growth.

2024 2024 cont. 2025 and future outlook

• Positive outlook in 2025. This year's budget projects a 10% increase in operating profit for Stólpi and Klettur although fuel sales are expected to decline due to higher taxes and carbon levies shifting fuel sales away from Iceland.
• The national energy forecast anticipates a 2.2% increase in fuel consumption by 2029.
• Public tenders are expected to double in 2025, as infrastructure investment remains a key priority for the current government.
• SKEL will offer 10–15% of its share capital to cornerstone investors. The goal is to ensure that the company is no longer classified as a subsidiary of SKEL and to attract long-term investors.

12,969ISK m. Equity value (63.4%)

Valuation method

Based on transaction price

Acquisition of Hringrás

"Leader in scrap metal processing in Iceland" Operational

Hringrás

^>1.000 ISK m. Expected EBITDA after acquisition

• The book value of fixed assets exceeds ISK 6 bn., following investments in a state-of-the-art scrap metal shredder and advanced environmental protection systems at the company's site.
• These investments enhance the value of processed scrap metal, a key driver of Hringrás' expected financial improvement.

Fixed assets Opportunities Purchase Price

• The development in Iceland aligns with other Western nations, where the emphasis on recycling is growing rapidly alongside increasing requirements for waste management and disposal.
• Significant opportunities exist for further expansion of recycling operations on Hringrás' 27,000 sqm industrial site, with the potential to expand up to 50,000 sqm.

• The site is adjacent to Stólpi's 60,000 sqm property site, creating synergies for future growth.

• Enterprise value is ISK 6.3 bn., with a potential increase to ISK 6.5 bn. if performance targets are met.

• The entire purchase price is settled through new shares in Styrkás, granting the sellers a 9.7–10.7% stake in the company.
• This acquisition aligns with Styrkás' strategic objective to establish a new core business in environmental services.

Enterprise value

6.3-6.5ISK bn.

Property site in a growing industrial area in Hafnarfjörður

Property site near Sundahöfn harbour

Gallon

"Infrastructure company focusing on energy sector"

2025 Forecast

629ISK m. Revenue

163 ISK m. EBIT

Equity value

Valuation method

Third party valuation

3,355 ISK m.

ISK m Actual1) Budget Revenue 609 580 EBITDA 294 285 EBIT 133 145

Key financials 2024

Operations Upcoming

• Operations have been stable during the year. The financial results are on budget.
• The tank storage units are 36 and have a capacity of 90m litres of gasoline.
• The company sold its stake in a real estate located on KEF airport. Profit from the sale amounted to ISK 111 m.

• The equity value increases by ISK 452 m. since 30.6.2024.

• Activity in this sector as ODR, Gallon's main competitor, is in sales process as has been publicly announced.

• Ongoing discussions with parties that have shown interest in purchasing the company.
• Potential sale of EBK is being reviewed. Gallon owns 25% stake in EBK.
• Looking forward there are opportunities for Gallon in consolidation in the sector, storage of e-fuels and increased activities in the arctic area.

1) According to draft of 2024 financials. Adjusted for profit from real estate sales and one-off items that otherwise would increase the results by 96 m. ISK. Fixed assets of Gallon will be revaluated in the 2024 accounts. The impact of this is not reflected in the numbers above.

Consumer Market

Orkan

2022 2021 2023 2024 Company formation through a corporate split First fuel company to offer contactless payments Orkan nominated as Best Icelandic Brand in the consumer market Advancing automation in customer services; washer fluid dispensers at fuel pumps Equal pay certification Loyalty program – mobile payments Customer satisfaction increased 2023 Company of the year by VR in the large enterprise category Headquarters move to Fellsmúli Löður closes 8 old car wash stations and opens 6 new ones. Margin increases by 34.5% between years. Orkan and Landsbankinn enter Aukakrónur partnership Löður introduces subscription model – unlimited car washes Recognition for excellence in corporate governance Customer satisfaction increased 2024 Orkan and Löður officially merge 2025 Value of 100% share 10,669 ISK m. Fuel sales volume increases by 2.6% and margin increases by 9% from previous year Electricity sales grow by 664% from 2023 Fast charging stations in 20 locations in 2025 Orkan acquires a 34% stake in Straumlind Portable charging containers First steps in energy transition Orkan opens a fast-charging station The company will be an active participant in energy transition First to introduce automatic payment for charging Fuel sales volume increases by 5.5% in 2023 Orkan established - divestiture from Skeljungur Orkan is a participant in energy transition Income distribution and growth

Orkan

"Service of vehicles in a

ISK m. EBIT2) 1,730

Margin and other income

Group

2025 Forecast

Key financials 20241)

ISKm	Actual	Budget
Margin and other income	5,362	5,189
EBITDA excl. IFRS	2,272	2,161
EBIT excl. IFRS	1,682	1,560
EBITDA	3,142	2,994

• Löður started offering car washes on subscription in collaboration with Parka. The subscription model has exceeded expectations and now has over 5,000 subscribers.
• New locations opened in Fellsmúli and Akureyri during the winter, bringing the total number of car wash stations to 12.
• A new station will open on Lambhagavegur in the next few months.
• The lease agreement with N1 for 8 washing stations expired in March leading to their closure. However, this was accounted for in the company's strategy, and six new stations were opened in 2024.

Löður Orkan

• Overall, operations are going well and EBITDA was 23% above budget in 2024.
• Service station transactions increased by 4.9% between years and fuel sales grew by 2.6%.
• The energy forecast assumed that the proportion of newly registered clean energy vehicles in 2023 would be 37%, but the actual figure was just under 19%.
• Orkan remains committed to the energy transition by offering all energy sources.
• The company has expanded its fast-charging network, with 13 stations currently in operation, set to reach 20 by year-end.
• The goal is to continue to offer smart solutions and innovations in simple operations.

10,669ISK m. Equity value (100%)

Valuation method

Third party valuation

Orkan expands

Retail market group

• The anticipated merger with Samkaup was terminated in October 2024. Had it proceeded, the merger would have had a significant impact on Orkan and its associated companies and would likely have accelerated the company's public listing.
• As a result, Orkan will pursue a more gradual strategy, taking incremental steps toward a diversified revenue base and strengthening the company's market position. The company has a highly skilled management team and strong infrastructure.
• Orkan is financially robust, with a strong market share and solid growth potential.
• "Orkan 2.0" will hold the ownership in Orkan, Löður, Lyfjaval and a real estate company formed to manage the company's properties and property sites.
• Orkan will focus on expanding its footprint in the consumer market and will actively seek new business units that align with its portfolio (everyday services).
• Upon formation, one-third of Orkan's EBITDA originates from non-fossil fuel sources, but the goal is to increase this share to over 50% within the next two years.
• The company will focus on acquisitions based on the following key factors: (i) strong market share, (ii) cultural and strategic alignment (the right DNA and outstanding company culture) and (iii) minimum EBITDA of ISK 500 m.

Orkan 2.0

Fuel

• Orkan operates 73 stations all over the country with approx. 30% market share in fuel sales.
• It is estimated that around 50% of the Group's EBITDA will come from fuel in 2 years.
• Fuel sales volume increased by 2.6% between years.

Electricity

• Orkan has invested heavily in fast-charging stations throughout the country in line with the ideology of a "new product at the pump". The number of fast-charging stations is expected to increase from 13 to 20 this year.
• Electricity sales increased by 664% in 2024, compared to 2023, which was the first year of electricity sales.
• Straumlind's revenue increased 194% in 2024. The estimated EBITDA for the year 2024 is around ISK 65 m.

Car Wash

• Löður has made significant investments recently and its stations at major retail giants have been closed, as they have entered direct competition with Löður.
• The number of car washes increased by 91.6% from 2023, mainly due to subscriptions, but revenue increased by 23.2%.

Real Estate

• The company owns 31 properties and property sites, mainly outside the capital area.
• Transfer of assets to a new real estate company to focus on subletting and development as these are usually very interesting locations.
• The rental income of the real estate company will be around ISK 6-700 m. per year.

Pharmacy

• Lyfjaval's unique strengths lie in the size of its pharmacies, drive-thru service, extended opening hours, and strategic locations.
• There are opportunities to expand operations outside the capital area.
• Revenue increased by 11.4% in 2024 from the previous year.

Samkaup - Heimkaup

Agreement on the merger of Heimkaup with Samkaup Key figures in the merger of Heimkaup with Samkaup

• In 2024, SKEL and Samkaup attempted a merger of companies in the consumer market with the goal of merging under Samkaup. Those negotiations were terminated in October of the same year.
• During the merger discussions, a synergy assessment of the merged entity was conducted, estimating synergies at about 1.5% in procurement. Based on this, Samkaup and the shareholders of Heimkaup decided to merge the companies in December 2024. Heimkaup's revenue was around ISK 7.7 bn. in 2024, and Samkaup's approximately ISK 42 bn. It is clear that both entities operated at a loss in 2024.
• In December 2024, a shareholders' meeting of Samkaup decided to increase share capital by ISK 1 bn. to strengthen the company's equity position in the short term. The capital increase was executed at a price of 24 ISK per share. In the offering, a holding company owned by SKEL subscribed for 17.4% of the issue, resulting in a 6.2% stake in Samkaup, valued at ISK 641 m. based on the offering price of 24 ISK per share.
• In the 2024 Financial Statements, SKEL's valuation of its stake in Heimkaup is based on the number of shares SKEL expects to receive in new equity in Samkaup in exchange for its equity in Heimkaup. The value of SKEL's ownership in Heimkaup is recorded at ISK 934 m. in the annual report (81.2% ownership).
• After the merger of Samkaup and Heimkaup, SKEL will indirectly own approximately 13.7% of Samkaup. A price of ISK 24 per share implies that the operational value of the merged entity is ISK 14.6 bn., with an equity value of ISK 10.5 bn. or 8.8x EBITDA for 2025, according to Samkaup's projections.

1.5 % Synergies in procurement

1,576 m. ISK

Revenues Heimkaup

42 ISK bn. Revenues Samkaup

13.7% SKEL's shareholding in Samkaup after merger

Samkaup's share capital increase

SKEL's subscription of the total share capital increase

Value of SKEL's shares in Samkaup after the merger

17.4%

24 ISK Share price

Samkaup - Heimkaup

Agreement on the merger of Heimkaup with Samkaup

• The board of directors of Samkaup applied for permission to increase the share capital by up to ISK 100 m. at a nominal price of ISK 20-27 per share, until the end of May 2025, to support the company's investments and external growth for the future.
• Samkaup's management has presented shareholders with the company's streamlining and growth plans. They have also stressed to shareholders the importance of increasing the number of revenue streams in related operations, which will improve the utilisation of the company's infrastructure. In this context, they have pointed to growth in catering, medicines, alcohol, energy and specialty goods.
• It is clear that the competitive position of everyone in the grocery market vis-à-vis the two large companies in the grocery market is very difficult in all respects. But with better operations, utilisation of the sales network and more diversified revenue streams and strong finances, Samkaup has the opportunity to achieve success.
• Samkaup's management believes that there are great opportunities for synergy with the merger that can be used to gain a share of the grocery market. SKEL shares this view with Samkaup and will support these goals as a shareholder.

Highlights of the agreement

• ✓ Heimkaup exchanged for equity in Samkaup, valued at ISK 1,150 m.
  • ✓ SKEL owns 81.2% of Heimkaup and therefore receives equity in Samkaup valued at ISK 934 m.
• ✓ Operations without significant negative changes for each party.
• ✓ Review of the shareholder agreement in good faith.
• ✓ Final documentation.
• ✓ Reservations regarding shareholder and regulatory approvals.
• ✓ The merger is expected to be fully completed in the first half of the year.

Foreign Assets

Mapping investment opportunities in Europe with a focus on the consumer market

Stork ehf.

2H 2024

Stork ehf. acquires 50% share in INNO through INNOvative

INNO is the only department store in Belgum Belgium. For nearly 125 years, INNO has been a cornerstone of retail in all major cities of Belgium

EBITDA20241) 1,391 ISK m.

1F 2024

The board of SKEL sets a strategy to increase foreign assets from 3% to up to 30%

Development of a holding company for foreign assets in the European retail sector Transformation and growth phase

2023

Systematic mapping of investment opportunities in Europe in line with SKEL's mission

Market conditions in the European cosumer market are challenging after significant fluctuations in recent years, driven by COVID, conflicts, and high interest rates

Opportunities exist for investors with specialized knowledge and experience to build and develop a portfolio of assets

1H 2024

Focus has been placed on collaborating with strong partners, guided by long-term value creation

Relationships have been established with well-known players in the advisory and financial markets, with a wide range of interesting investment opportunities available

ICE JV ehf.

Entered into a partnership with Iceland Foods, a British grocery chain with over 900 stores and a turnover of GBP 4.5 billion. The joint venture, ICE JV ehf., will distribute popular frozen products from Iceland Foods to the Nordic market to meet growing demand

Value of 100% share2)

2,208 ISK m.

Stork ehf.

"Development of a holding company for foreign assets"

• Stork is a wholly owned company by SKEL and is intended to manage all foreign strategic investments with clearly defined goals and governance.
• Over the past 18 months, opportunities in Europe have been systematically mapped, with focus on retail.

• Relationships have been established with well-known players in the advisory and financial markets, with a wide range of attractive investment opportunities available.

• The retail sector has been largely neglected by investors in recent years as consumer expectations (CCI) have been at a low, resembling conditions in markets around the year 2000.

• Consumer expectations are gradually increasing, and disposable income is expected to grow in the coming years.
• The aftermath of COVID and higher interest rates present opportunities for active investors.

The Journey Focus on Retail Capital Increase

• Based on the decades of experience and valuable network that SKEL possesses, there is a possibility to lead investments in this asset class.
• The company has engaged Arion Bank to explore the basis for increasing its share capital in the coming months in order to look for new investors in a welldefined journey for specific projects.

Stork

ISK m. EBITDA INNO 2023/24 1,391

2,208 ISK m. Value of Stork

Valuation method

Third party valuation

INNO

• INNO was founded in 1897 and is headquartered in Brussels, Belgium.
• INNO operates 16 stores in Belgium and an online store.
• The company's stores have a total of 130,000 sqm.
• The company's business model is based on three sales channels; shop-in-shop, wholesaler and online store.
• INNO's product range in stores consists of more than 540 brands and over 1,650 brands are available on the company's online store.

Key figures FY 2023/24

21.4 m Number of visits in store

1.4 ISK bn.

18.4% % of visitors who shop in store

INNO at a glance Strong sales with increased focus on own brand

Key locations across Belgium

INNO's store in Antwerpen

INNO stores

Liége Brugge Charleroi

Antwerpen

Louise Hasselt Rue Neuve Schoten

INNO stores

Bascule Gent Leuven

Woluwe

Mechelen Namur Oostende Wassland

Real Estate

Stefnisvogur

105 apartments in Stefnisvogur Summary

• SKEL acquired 50 apartments in Stefnisvogur during the year, in addition to the 55 apartments that were delivered at the end of 2023. This brings the total number of apartments in Stefnisvogur 2- 36 to 105.
• The acquisition of the apartments was a part of the company's strategy to develop its balance sheet, converting development properties into income-generating real estate with a known market value, which can potentially be liquidated within 12 months.
• Almost all of the first apartments were rented out to residents of Grindavík, meeting their needs with short notices and other flexible terms, following the volcanic eruption in Grindavík. This solution was generally well received1) .
• Alongside the increasing demand for rental housing, legal changes have been made to facilitate institutional investors' participation in the housing and rental market, while at the same time tightening contractual freedom in the rental market.
• Skel will begin selling apartments during the year as rental agreements expire and market conditions allow.
• The estimated value of the real estate in Stefnisvogur, according to an appraisal from one of the country's largest real estate agencies, is ISK 10.3 bn.
• The liabilities associated with the properties in Stefnisvogur amount to ISK 7.1 bn.

Financials

Balance Sheet

23.3 ISK

Equity per share

Balance Sheet 31.12.2024 Assets in ISK millions

ISK millions	31.12.24	31.12.23
Cash	3,604	3,139
Government bonds	1,086	2,524
Listed securities	9,583	9,396
Investment properties at fair value	10,929	6,107
Other assets at fair value	32,822	27,138
Other assets	2,547	1,442
Total assets	60,570	49,745
Equity	43,728	37,610
Debt related to real estate	7,397	3,674
Other debts to credit institutions	4,888	4,768
Deferred income tax liability	1,773	1,892
Other liabilities	2,784	1,802
Total liabilities	16,842	12,135
Total equity and liabilities	60,570	49,745

Overview of Assets

Cash and other assets with known market price

Cash and treasury bonds	4,690
Kaldalón	4,619
Skagi	3,390
Other assets with known market price	1,620

14,319 ISK m.

Arm's length value between unrelated parties

Styrkás	12,969
Heimkaup	934
Other assets	702

14,605 ISK m.

20,718 ISK m.

Real Estates	10,929 ISK m.

Valuation of unlisted assets
Orkan, Löður, Real Estates	10,669
Gallon	3,355
Loans, receivables and other assets	2,559
Stork	2,208
Lyfjaval	1,927

Operations 2H 2024

Profit and Loss statement 1.7. - 31.12.24

ISK millions	2H 2024	2H 2023
Fair value change of financial assets	8,017	4,041
Financial income (-expenses)	(482)	(358)
Income from real estate properties	127	35
Expenses from real estate properties	(26)	(3)
Investment income	7,636	3,715
Other income	13	54
Salaries and payroll expenses	(413)	(330)
Other operating expenses	(162)	(169)
Expenses and other income	(563)	(445)

Profit for the year	7,086	3,349
Income tax	13	79
Profit before taxes	7,073	3,270

Profit 2H 2024

ISK m. 7,086

Fair value change of unlisted assets

ISK m. ISK m. 5,265 2,752

Fair value change of listed assets

Operations 2024

Profit and Loss statement 1.1. - 31.12.24

ISK millions	2024	2023
Fair value change of financial assets	7,520	5,939
Financial income (-expenses)	(113)	96
Income from real estate properties	229	34
Expenses from real estate properties	(44)	(9)
Investment income	7,592	6,060
Other income	51	128
Salaries and payroll expenses	(708)	(596)

Profit before taxes	6,636	5,288
Income tax	119	122
Profit for the year	6,754	5,410

Expenses and other income (956) (773)

Profit for the year

Operating expenses Adjusted for options and incentives

of equity ISK m. ISK m. 1,7% 5,375 2,145

Fair value change of unlisted assets

Fair value change of listed assets

Fair value changes

Overview 2024 Styrkás 3,285 Orkan 1,496 Stork 1,125 Gallon 516 Other unlisted (1,047) Total unlisted 5,375 Kaldalón 1,619 Skagi 709 Other listed (183) Total listed 2,145 Total fair value changes 7,520 Dividend payment 581

Total fair value changes and

8,101ISK m.

dividend payments

Rationale for fair value changes

Styrkás

Styrkás is performing well and EBITDA exceeded expectations for the year. Healthy growth is still expected. At yearend, the Group's cash and cash equivalents amounted to ISK 4.8 bn. The book value is based on the price of Styrkás in the Hringrás transaction. The enterprise value of the company is estimated at ISK 23 bn. which is about 10x the estimated EBIT for 2025.

Orkan

The increase from Orkan's previous assessment is due to Orkan's performance exceeding projections over the past year. Orkan's EBITDA for 2024 was 23% above budget and the 2025 budget assumes continued growth. Löður's share price has been below the company's projections, which has negative impact on valuation, but the company's plans assume a good turnaround in Löður's operations in 2025. The capex need has been adjusted based on better insight into cost associated with installation of charging stations and that has a positive impact. The company's interest-bearing debt has also decreased, having a positive impact on valuation. Increase in WACC has a negative impact on valuation. The company's operating value corresponds to 8.3x estimated EBIT for 2025.

Stork

Stork's main asset is a 50% stake in INNOvative, which owns a 100% stake in the Belgian retail chain INNO. The store chain was bought in mid-2024 and therefore there was no value on Stork in SKEL's books on 30.6.2024. The company's enterprise value is estimated at ISK 6.3 bn. which corresponds to approximately 4.5x EBITDA for the operating year 2023-2024. The company's forecasts assume that earnings will increase considerably between years, but this will realize as the operating year progresses, which ends at the end of September.

Gallon

Operating budgets are comparable to those used in previous valuations, and the company's enterprise value has therefore changed little between years. Higher WACC has a negative impact, while changes in non-operating assets (EBK) has a positive impact. Discussions with interested buyers are ongoing.

Dividend proposal

• The Board of Directors proposes that a dividend be paid to shareholders in 2025 for the operating year 2024 in the amount of ISK 6,000 m. The board will propose to the shareholders' meeting that dividends be paid in two installments, each amounting to ISK 3,000 m.
• Further details will be provided in the notice of the annual general meeting.

Shareholders

Payments to Shareholders (ISK m.)

Buy-back Dividend

10 largest shareholders 31.12.24

Strengur hf.	51.6%
Frjálsi lífeyrissjóðurinn	8.6%
Birta lífeyrissjóður	7.4%
TCA ECDF III Holding S.á.r.l.	5.2%
NO.9 Investments Limited	3.1%
Skagi	1.6%
Eftirlaunasjóður FÍA	1.1%
Hofgarðar ehf.	1.1%
Íslandsbanki	1.0%
Vörður tryggingar	0.8%

Shareholders 31.12.24

Equity and market value since listing (ISK m.)

Upcoming

Attract partners into foreign investments

Enhance operational performance of INNO Further expansion of Styrkás and broadening of shareholder group

Conclusion of Heimkaup/Samkaup and Gallon

Initiate the sale of real estate assets

Orkan 2.0 – develop a broader consumer services group

Valuation

Valuation Methodology

Financial institutions were mandated to perform valuations of unlisted assets with either a turnover exceeding ISK 1 bn. or a valuation above ISK 1 bn. In cases where a recent transaction price between unrelated parties was available, it was used as basis for valuation, as seen with Styrkás.

SKEL's auditors, KPMG, classify the valuation of unlisted assets as a key audit matter in the company's financial review. Together with auditors, valuation specialists from KPMG's advisory division conducted a thorough review of the valuations, assessing methodologies, assumptions, and calculations to ensure accuracy and reliability.

Methodology

Fair value assessment of companies owned by SKEL was conducted using a Discounted Cash Flow (DCF) analysis, applying both Free Cash Flow to Firm (FCFF) and Dividend Discount Model (DDM). Additionally, a multiple analysis was performed using similar companies as benchmarks.

The valuation is primarily based on management's financial projections, supplemented by discussions between management and valuation experts.Key forecast variables are derived from actual changes in underlying financial figures, with an embedded inflation premium in risk-free interest rates used as an estimate for future inflation in cash flow projections.

Orkan Group - Valuation

Equity value for Orkan Group (Orkan and Löður)

10,669 ISK m.

Impact on value

1) According to draft of 2024 financials

2) Margin and other income

Results and forecast

	20241)	2025F
Margin2)	5,362	5,731
EBITDA	3,142	3,233
EBITDA excl. IFRS	2,272	2,438
Depreciation	590	708
EBIT excl IFRS	1,682	1,730
CAPEX	1,026	993
EBITDA/margin	42.4%	42.5%
CAPEX/margin	19.1%	17.3%
ROIC	18.3%	19.6%

Required rate of return (nominal)
WACC	14.1%
Target leverage	30.0%

Multipliers 2025F

Lyfjaval - Valuation

Equity value

2,373 ISK m

Impact on value

Growing market

The company's results have been below budget

Increased market share Lower expectations for future performance

Results and forecast

	20241)	2025F
Revenue	3,816	4,625
EBITDA	139	274
EBIT	(11)	221
Depreciation	150	53
CAPEX	117	74
EBITDA/revenue	3.6%	5.9%
CAPEX./revenue	3.1%	1.6%
ROIC	3.0%	19.5%

Required rate of return (nominal)
WACC	14.0%
Target leverage	20.0%

Multipliers 2025F

Gallon - Valuation

Equity value

3,355 ISK m.

Impact on value

Results and forecast

	20241)	2025F
Revenue	609	629
EBITDA	294	303
EBIT	133	163
Depreciation	161	140
CAPEX	64	60
EBITDA/revenue	48.3%	48.2%
CAPEX./revenue	10.5%	9.5%
ROIC	9.4%	12.9%

Required rate of return (nominal)
WACC	12.0%
Target leverage	50.0%

Multipliers 2025F

1) According to draft of 2024 financials, adjusted for property sales gains and one-time items totalling approximately ISK 96 m., which would otherwise increase the results.

Stork - Valuation

Value of Stork at SKEL

2,208 ISK m.

• 1) EV (e. enterprise value) of INNO is based on a valuation where 4.5x EV/EBITDA multiplier was used.
• 2) Stork is a 50% owner of INNOvative, hence 50% of INNOvative's equity value is an asset for Stork.
• 3) SKEL's ownership in Stork consists of a shareholder loan amounting to ISK 1,082 m. and an equity value of ISK 1,126 m.

Valuation of Stork

• The primary asset of Stork is its 50% ownership stake in INNOvative, which owns 100% of the Belgian retail chain INNO.
• Additionally, Stork holds a 60% stake in ICE JV ehf., though as operations have not commenced, no specific valuation has been assigned to this asset.
• The main basis for the valuation of Stork is therefore the value of INNO.

Valuation of INNO

• The valuation of INNO was based on an independent financial institution's assessment, which incorporated INNOvative's management projections for the coming years and the use of EV/EBITDA multiples to benchmark against industry standards.
• Given that INNOvative's management forecasts are considered ambitious, SKEL's management opted to apply a conservative adjustment to the valuation through a prudence-based writedown.
• After accounting for Stork's ownership stake and the settlement of all intercompany loans, the equity value of Stork is estimated at ISK 1,126 million.

Disclaimer

SKEL Investment Company notes that this presentation is intended solely for information purposes and its receipt should not be construed as investment advice. Under no circumstances should the presentation be perceived or construed as a promise of success in the operation of the company or returns on assets.

Information contained in this presentation is based on sources that the company considers to be reliable at each time, and statements contained in the presentation may be based on the assessments and estimates of the company's management and not on facts that can be verified in the presentation. Statements made in this presentation are valid only at the point in time that this presentation is made public, and their validity is limited by the substance of this disclaimer.

Investors should note that a number of factors can have the effect of the company's business operations and performance deviating from the assumptions made in the presentation. The presentation will not be revised in this regard following its publication.

Any statement in this presentation that refers to the company's estimated or anticipated future results represents only a forecast of the company's future prospects based on current trends, available information and estimates. The company's future prospects are subject to a number of risks and uncertainties that could cause actual results to differ from the prospects forecast in this presentation. These include factors such as changes in the economic environment, financial risk, oil price risk and increased competition.

By the receipt of this presentation the recipient acknowledges his/her acceptance of being bound by the above reservations and restrictions.