AI assistant
Festi Investor Presentation 2021
2195_rns_2021-10-29_805a4493-382b-44c8-90f2-a1eb2f7ed2a3.pdf
Investor Presentation
Open in viewerOpens in your device viewer
Presentation of Q3 2021 results
Eggert Þór Kristófersson, CEO
FESTI
CONSOLIDATED HIGHLIGHTS
| ISK 3,346 m
EBITDA Q3 2021 | 25.4%
Margin from sales | 2.81
NIBD/EBITDA |
| --- | --- | --- |
| ISK 4,245 m
Cash and cash equivalents | 48.7%
EBITDA/Margin from sales Q3 2021 | 40.0%
Salaries/Margin from sales Q3 2021 |
2
FESTI
CONSOLIDATED OPERATIONS Q3
| Amounts are in ISK million | Q3 2021 | Q3 2020 | Change | % Chg. |
|---|---|---|---|---|
| Sale of goods and services | 27,064 | 23,455 | 3,609 | 15.4% |
| Margin from sale of goods and services | 6,875 | 5,785 | 1,090 | 18.8% |
| Lease revenue and operating income | 534 | 432 | 102 | 23.6% |
| Salaries and personnel expenses | -2,752 | -2,475 | -277 | 11.2% |
| Other operating expenses | -1,311 | -1,156 | -156 | 13.5% |
| EBITDA | 3,346 | 2,586 | 759 | 29.3% |
| Key Figures | ||||
| EBITDA/Margin from sales | 48.7% | 44.7% | 4.0% | 8.8% |
| Salaries/Margin from sales | 40.0% | 42.8% | -2.8% | -6.4% |
| Earnings per share | 7.10 | 3.55 | 3.55 | 100.0% |
- Sale of goods and services ISK 27,064 million, increase of ISK 3,609 million or 15.4% YoY.
- Margin from sale ISK 6,875 million, increase of 1,090 million or 18.8% YoY.
- Number of full-time employees 1,216, increase by 40 or 3.4% YoY.
- COVID-19 related cost ISK 14 million in salaries and other operating expenses, decrease of ISK 94 million YoY.
- EBITDA ISK 3,346 million in Q3 2021, increase by 759 million or 29.3% YoY.
3
FESTI
HIGHLIGHTS Q3
- Volatility in USD/ISK and EUR/ISK exchange rates.
- USD/ISK increased by 5.6% and the difference between highest and lowest exchange rate in Q3 is 5.4%.
- EUR/ISK increased by 2.9% and the difference between the highest and lowest exchange rate in Q3 is 4.2%.
- The Q3 2021 average price of diesel fuel was 606.6 USD, compared to an average of 359.7 USD in Q3 2020, an increase of 68.6%.
- The Q3 2021 average price of gasoline was 733.8 USD, compared to an average of 405.6 USD in Q3 2020, an increase of 80.9%.
- The Q3 2021 average price of USD/ISK was 126.3 compared to 137.7 in Q3 2020, a decrease of 8.3%.
Exchange rate development
Price development of Mogas 95 and Diesel
4
FESTI
N1 HIGHLIGHTS Q3
N1
- Revenue was ISK 11,748 million, an increase ISK 2,242 million or 23.6% YoY.
- Removal of COVID-19 restrictions had positive effect on sale of energy in Q3 2021 with sale increase of ISK 1,811 million or 30.5% YoY.
- Sale of other goods increase by ISK 314 million or 18.4% YoY of which largest increase came from sale of car services.
- Margin from energy sales was ISK 1,818 million, an increase of 23.7% YoY. Gain from fuel hedges was ISK 176 million YoY.
- EBITDA was ISK 1,742 million, an increase of ISK 233 million or 15.5% YoY.
- Ísey skyr bar delivering good results. New outlets in Borgarnes and Hveragerdi due to open in Q4.
- Customers of Íslensk Orkumiðlun, subsidiary of N1, selling electricity in retail growing every day.
| Amounts are in ISK million | Q3 2021 | Q3 2020 | Change | %Change |
|---|---|---|---|---|
| Total segment revenue | 11,748 | 9,506 | 2,242 | 23.6% |
| Total operating expenses of segments | -10,005 | -7,997 | -2,009 | 25.1% |
| Segment EBITDA | 1,742 | 1,509 | 233 | 15.5% |
| Segment depreciation and amortisation | -854 | -596 | -258 | 43.4% |
| Operating result of segments | 888 | 914 | -25 | -2.8% |
| Financial expenses | -213 | -244 | 30 | -12.5% |
| Income tax expense | -205 | -139 | -67 | 48.1% |
| Profit (Loss) | 470 | 531 | -61 | -11.5% |
| Segment assets | 32,098 | 30,789 | 1,308 | 4.2% |
| Segment capital expenditure | 552 | 556 | -4 | -0.7% |
| Segment liabilities | 17,908 | 17,352 | 556 | 3.2% |
FESTI
KRÓNAN HIGHLIGHTS Q3
KRONAN
- Revenue was ISK 11,774 m., an increase of 839 million or 7.7% YoY.
- Three new stores contribute ISK 700 million to the increase. Increase in other stores is 5% YoY. Stores in Nóatún and Hella sold in the beginning of the quarter.
- Margins from sale are rising and are in line with expectations.
- EBITDA was ISK 1.061 million, increase of 312 million or 29.9% YoY.
- Emphasis on customer experience with investments in online store and "scan and go" solutions, launched in Lindir store in September.
- Krónan will open three new stores in 2022
- Borgartún in the beginning of the year.
- Skeifan in early spring where older smaller store in similar location is closed at the same time.
- Akureyri in the autumn
| Amounts are in ISK million | Q3 2021 | Q3 2020 | Change | %Change |
|---|---|---|---|---|
| Total segment revenue | 11,774 | 10,935 | 839 | 7.7% |
| Total operating expenses of segments | -10,713 | -10,118 | -595 | 5.9% |
| Segment EBITDA | 1,061 | 816 | 244 | 29.9% |
| Segment depreciation and amortisation | -360 | -428 | 68 | -15.9% |
| Operating result of segments | 701 | 389 | 312 | 80.4% |
| Financial expenses | -104 | -118 | 14 | -11.8% |
| Income tax expense | -119 | -65 | -54 | 83.7% |
| Profit | 477 | 205 | 272 | 132.5% |
| Segment assets | 16,145 | 15,061 | 1,083 | 7.2% |
| Segment capital expenditure | 407 | 860 | -453 | -52.6% |
| Segment liabilities | 13,568 | 13,523 | 45 | 0.3% |
FESTI
ELKO HIGHLIGHTS Q3
ELKO
- Revenue was ISK 3,847 million, increase of 473 million or 14.0% YoY.
- New store in Akureyri contributed ISK 292 million to the increase. Increase in other stores 6.4% YoY.
- ELKO store at international airport is starting to gain momentum.
- Margins are up with better pricing and changed emphasis
- Emphasis on „one stop shop“, product range and services.
- EBITDA was ISK 451 million, increase of 157 million or 53.3% YoY.
- New web launched, dropbox outside Lindir store and improved system processing web orders due to launch in Q4.
- ELKO will open a new store in Skeifan mid-year 2022 and close current store at the same time.
- Gestur Hjaltason, MD of ELKO will retire at the end of the year after nearly 20 years with the company. Öttar Örn Sigurðsson, current assistant MD will replace him.
| Amounts are in ISK million | Q3 2021 | Q3 2020 | Change | %Change |
|---|---|---|---|---|
| Total segment revenue | 3,847 | 3,374 | 473 | 14.0% |
| Total operating expenses of segments | -3,396 | -3,080 | -316 | 10.3% |
| Segment EBITDA | 451 | 294 | 157 | 53.3% |
| Segment depreciation and amortisation | -122 | -92 | -30 | 32.9% |
| Operating result of segments | 329 | 203 | 127 | 62.5% |
| Financial expenses | -16 | -34 | 18 | -53.0% |
| Income tax expense | -63 | -35 | -27 | 76.4% |
| Profit | 251 | 133 | 118 | 88.8% |
| Segment assets | 5,203 | 4,319 | 885 | 20.5% |
| Segment capital expenditure | 161 | 179 | -18 | -10.1% |
| Segment liabilities | 3,978 | 3,305 | 673 | 20.3% |
FESTI
CONSOLIDATED OPERATIONS IN 9M 2021
| Amounts are in ISK million | 9M 2021 | 9M 2020 | Change | % Chg. |
|---|---|---|---|---|
| Sale of goods and services | 72,308 | 62,875 | 9,433 | 15.0% |
| Margin from sale of goods and services | 18,124 | 15,313 | 2,812 | 18.4% |
| Lease revenue and operating income | 1,593 | 1,185 | 407 | 34.4% |
| Salaries and personnel expenses | -8,587 | -7,588 | -998 | 13.2% |
| Other operating expenses | -3,821 | -3,599 | -222 | 6.2% |
| EBITDA | 7,309 | 5,310 | 1,999 | 37.6% |
| Key Figures | ||||
| EBITDA/Sales margin | 40.3% | 34.7% | 5.6% | 16.3% |
| Salaries/Sales margin | 47.4% | 49.6% | -2.2% | -4.4% |
| Earnings per share | 11.22 | 5.31 | 5.91 | 111.3% |
- Sale of goods and services ISK 72,308 million, increase of 15.0% YoY.
- Margin from sale ISK 18,124 million, increase of 18.4% YoY.
- Salaries and personnel expenses increase by 998 million between years, thereof 574 million due to increase of 81 in FTE.
- Other operating expenses increase by ISK 222 million YoY of which ISK 147 is in maintenance expenses.
- COVID-19 related cost ISK 75 million in salaries and other operating expenses, decrease by 167 million from last year.
- EBITDA ISK 7,309 million in 9M 2021, increase of 37.6% YoY.
8
FESTI
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Amounts are in ISK million | 30.9.2021 | 31.12.2020 | Change | % Chg. |
|---|---|---|---|---|
| Goodwill | 14,668 | 14,668 | 0 | 0.0% |
| Other Intangible assets | 4,816 | 4,971 | -156 | -3.1% |
| Property and equipment | 31,654 | 32,297 | -643 | -2.0% |
| Leased assets | 5,587 | 5,420 | 167 | 3.1% |
| Investment properties | 7,500 | 7,467 | 33 | 0.4% |
| Shares in associates | 2,328 | 2,150 | 178 | 8.3% |
| Shares in other companies | 13 | 13 | 0 | 1.4% |
| Long-term receivables | 132 | 272 | -140 | -51.5% |
| Non-current assets | 66,697 | 67,258 | -561 | -0.8% |
| Inventories | 8,863 | 7,668 | 1,194 | 15.6% |
| Trade receivables | 5,887 | 4,924 | 964 | 19.6% |
| Other short-term receivables | 1,073 | 952 | 121 | 12.7% |
| Cash and cash equivalents | 4,245 | 2,563 | 1,682 | 65.6% |
| Current assets | 20,068 | 16,107 | 3,961 | 24.6% |
| Total assets | 86,764 | 83,365 | 3,400 | 4.1% |
- Strong Balance Sheet.
- Property and equipment decreases from sale of two stores of Kronan in Q2.
- Higher inventories due to higher global oil prices, increased activity and seasonal fluctuations in inventories.
- Trade receivables increase due to higher oil prices and seasonality in the business.
- Cash was ISK 4,245 million at end of Q3, increase of ISK 1,682 million from year beginning.
Current ratio
Inventory turnover
9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Amounts are in ISK million | 30.9.2021 | 31.12.2020 | Change | % Chg. |
|---|---|---|---|---|
| Equity | 31,748 | 29,784 | 1,964 | 6.6% |
| Payable to credit institutions | 28,200 | 29,075 | -875 | -3.0% |
| Lease liabilities | 5,366 | 5,181 | 185 | 3.6% |
| Deferred tax liabilities | 5,526 | 4,664 | 863 | 18.5% |
| Non-current liabilities | 39,092 | 38,919 | 173 | 0.4% |
| Payable to credit institutions | 1,468 | 3,474 | -2,006 | -57.7% |
| Lease liabilities | 464 | 430 | 34 | 8.0% |
| Trade payables | 7,204 | 7,019 | 185 | 2.6% |
| Other short-term liabilities | 6,789 | 3,739 | 3,050 | 81.6% |
| Current liabilities | 15,925 | 14,662 | 1,263 | 8.6% |
| Total equity and liabilities | 86,764 | 83,365 | 3,400 | 4.1% |
- Equity ratio of 36.6%
- Purchase of own shares ISK 390 million and repayment of loans ISK 2,787 million during Q3 2021.
- Other short-term liabilities increase with higher inventories and seasonality in the business.
- Current capital structure is in line with company strategy and well within the covenant agreements with credit institutions.
Equity ratio
Net interest bearing liabilities without lease liabilities / EBITDA
10
CONSOLIDATED STATEMENT OF CASH FLOW Q3
| Amounts are in ISK million | Q3 2021 | Q3 2020 | Change | % Chg. |
|---|---|---|---|---|
| Cash at the beginning of the period | 3,134 | 4,294 | -1,160 | -27.0% |
| Cash flows from operating activities | 4,022 | 2,453 | 1,568 | 63.9% |
| Investing activities | 372 | -998 | 1,370 | -137.3% |
| Financing activities | -3,287 | -756 | -2,531 | 334.7% |
| FX difference on cash | 4 | -3 | 7 | -250.5% |
| Cash at the end of the period | 4,245 | 4,991 | -746 | -14.9% |
- Cash from operating activities was ISK 4,022 million an increase of ISK 1,568 million due to better results and increase in short-term liabilities relating to increase in turnover.
- Investing activities are positive as ISK 372 million in Q3 2021, an increase of ISK 1,370 million YoY.
- Financing activities are negative and amount to ISK 3,287 million in Q3 2021, an increase of 2,531 YoY.
- Increase in cash position in Q3 2021 from Q2 2021 amounted to ISK 1,111 million an increase of ISK 414 million YoY.
11
FESTI
CONSOLIDATED STATEMENT OF CASH FLOW 9M
| Amounts are in ISK million | 9M 2021 | 9M 2020 | Change | % Chg. |
|---|---|---|---|---|
| Cash at the beginning of the period | 2,563 | 5,369 | -2,806 | -52.3% |
| Cash flows from operating activities | 7,404 | 4,369 | 3,035 | 69.5% |
| Investing activities | -96 | -2,435 | 2,339 | -96.1% |
| Financing activities | -5,647 | -2,345 | -3,302 | 140.8% |
| FX difference on cash | 21 | 33 | -12 | -36.5% |
| Cash at the end of the period | 4,245 | 4,991 | -746 | -14.9% |
- Cash from operating activities was ISK 7,404 million, an increase of ISK 3,035 million YoY, due to better results and increase in short-term liabilities relating to increase in turnover.
- Investment activities are negative and amount to ISK 96 million in 9M 2021, a decrease of ISK 2,339 million YoY.
- Financing activities are negative and amount to ISK 5,647 million in 9M 2021, an increase of ISK 3,302 million YoY.
- Increase in cash position in 9M 2021 was ISK 1,682 million, an increase of ISK 2,060 million YoY.
12
FESTI
OPERATING SEGMENTS OF THE GROUP – Q3 2021
| Amounts are in ISK million | N1 | Krónan | Elko | Other | Total |
|---|---|---|---|---|---|
| Operating revenue outside of group | 11,640 | 11,760 | 3,845 | 354 | 27,598 |
| Other revenue within group | 107 | 14 | 3 | 1,515 | 1,639 |
| Total segment revenue | 11,748 | 11,774 | 3,847 | 1,869 | 29,237 |
| Total operating expenses of segments | -10,005 | -10,713 | -3,396 | -896 | -25,010 |
| Segment EBITDA | 1,742 | 1,061 | 451 | 973 | 4,227 |
| Segment depreciation and amortisation | -854 | -360 | -122 | -364 | -1,700 |
| Fair value changes of investment properties | 0 | 0 | 0 | 435 | 435 |
| Operating result of segments | 888 | 701 | 329 | 1,044 | 2,962 |
| Financial expenses | -213 | -104 | -16 | -394 | -728 |
| Share of profit from associates | 0 | 0 | 0 | 167 | 167 |
| Income tax expense | -205 | -119 | -63 | -86 | -473 |
| Profit | 470 | 477 | 251 | 731 | 1,929 |
| Segment assets | 32,098 | 16,145 | 5,203 | 33,319 | 86,764 |
| Segment capital expenditure | 552 | 407 | 161 | 415 | 1,535 |
| Segment liabilities | 17,908 | 13,568 | 3,978 | 19,563 | 55,017 |
Segment EBITDA
Segment Assets
FESTI
OPERATING SEGMENTS OF THE GROUP – 9M 2021
| Amounts are in ISK million | N1 | Krónan | Elko | Other | Total |
|---|---|---|---|---|---|
| Total segment revenue | 27,711 | 34,971 | 10,624 | 5,365 | 78,672 |
| Total operating expenses of segments | -24,579 | -31,918 | -9,522 | -2,719 | -68,738 |
| Segment EBITDA | 3,132 | 3,053 | 1,103 | 2,646 | 9,933 |
| Segment depreciation and amortisation | -1,830 | -1,123 | -330 | -1,083 | -4,365 |
| Fair value changes of investment properties | 0 | 0 | 0 | 393 | 393 |
| Operating result of segments | 1,302 | 1,930 | 772 | 1,956 | 5,961 |
| Financial expenses | -657 | -319 | -61 | -1,482 | -2,519 |
| Share of profit from associates | 0 | 0 | 0 | 293 | 293 |
| Income tax expense | -200 | -322 | -142 | -25 | -689 |
| Profit | 446 | 1,289 | 569 | 743 | 3,047 |
| Segment assets | 32,098 | 16,145 | 5,203 | 33,319 | 86,764 |
| Segment capital expenditure | 552 | 407 | 161 | 415 | 1,535 |
| Segment liabilities | 17,908 | 13,568 | 3,978 | 19,563 | 55,017 |
Segment EBITDA
14
FESTI
REAL ESTATE OPERATIONS OF THE GROUP
| Properties, key figures | Q3 2021 | Q3 2020 |
|---|---|---|
| NOI* | ISK 894 m | ISK 879 m |
| NOI ratio | 86% | 89% |
| Utization ratio | 97% | 97% |
| LTV** | 59% | 63% |
| Number of Festi's properties | 91 | 87 |
| Total square meters | 102 thousand m² | 106 thousand m² |
| Own use | 85% | 85% |
| Leased to third parties | 15% | 15% |
- Net operating income
** Loan-to-value ratio
15
FESTI
SHARE PRICE DEVELOPMENT
| Shareholders (10 largest) | % |
|---|---|
| Lifeyrissjõður verzlunarmanna | 11.5 |
| Lifeyrissj.starfsm.rík. A-deild | 9.9 |
| Gildi - lífeyrissjõður | 9.5 |
| Birta lífeyrissjõður | 5.8 |
| Brú Lífeyrissjõður starfs sveit | 5.0 |
| Stapi lífeyrissjõður | 5.0 |
| Almenni lífeyrissjõðurinn | 4.9 |
| Frjálsi lífeyrissjõðurinn | 3.5 |
| Lífeyrissj.starfsm.rík. B-deild | 3.0 |
| Söfnunarsjõður lífeyrisréttinda | 2.9 |
| Market information | |
| --- | --- |
| Issued shares | 319 m. |
| Market cap at the end of dec 2020 | ISK 69,229 M |
| Market cap at the end of dec 2019 | ISK 47,423 M |
| Number of shareholders | 979 |
16
FESTI
POSITION AND OUTLOOK
POSITION AND OUTLOOK FOR 2021
Financial forecast
- In light of Q3 2021 better results, EBITDA forecast for the year 2021 is increased by ISK 600 million with an announcement to Nasdaq OMX on September 29th and is now to ISK 9,400 – ISK 9,800 million excluding estimated capital gain with the sale of property to Reitir announced June 30th 2021.
Assumptions:
- Tourism expected to gradually increase.
- Large fluctuations in ISK exchange rate and global oil markets turmoil can lead to changes in margins and sales.
- Increase in imported goods and delays in the supply chain in the world market.
- Ongoing uncertainty due to COVID-19 effects.
Highlights:
- Great turnaround in N1 operations with lifting of government congregation bans
- Austurvegur in Selfoss was sold in the quarter.
- 3 properties are in the process of sale to Reitir.
- 3 new Kronan stores and 1 new ELKO store due to open in 2022.
- Ongoing focus on decrease in operating expenses.
Investments and transactions with shareholders:
- Investments in Q3 2021 amounted to ISK 547 million.
- Investments are expected as ISK 3,000 million for 2021.
- Purchase of own shares for ISK 390 million during the quarter.
FESTI
DISCLAIMER
- All information in this presentation is based on sources which Festi hf. considers reliable at the time of publication, but it cannot be guaranteed that the information is infallible.
- All information in this presentation is owned by Festi hf. It is not permitted to copy, change or distribute in any way information from this presentation, in part or entirely.
- This presentation is only intended for information purposes and is not part of, or a basis for, any decisions made by the recipient. Recipients should not interpret information in this presentation as a promise or as instructions. Festi hf. is not obliged to provide recipients of this presentation with further information about the company or to make changes or corrections to the presentation if information upon which it is based changes.
- The company's future outlook is dependent on a number of risks and uncertainties which may have the effect that the actual result in the future is considerably different to the scenario described in this presentation. This includes factors such as exchange rates, the global price of fuel, the availability of funding, new legislation coming into effect and the impact of regulators, etc.
- Festi hf. wishes to point out that recipients of the presentation should not rely on statements contained within in the future since they are only applicable on the date of publication of the presentation. All statements concerning the company's future prospects are entirely valid with respect to this proviso.
- By receiving this presentation the recipient agrees that they are bound by the above provisos and limitations.
19
FESTI