Hampiajan Hf · OMXICE:HAMP
Hampiajan Hf — Hampiðjan hf. — Investor Presentation (May 2023)
40 slides from Hampiajan Hf's investor presentation, May 2023
Slide 1: Investor presentation
Investor presentation
Slide 2: Highlights following the Mørenot acquisition
Highlights following the Mørenot acquisition Revenue 2022 (mEUR) EBITDA 2022 (mEUR) EBITDA margin1 333 40.4* 12.1%* Based on pro forma information Based on pro forma information Based on pro forma information Gender ratio Equity ratio2 NIBD/EBITDA2 M 57% 42% 4.2x F 43% Hampiðjan in 2022 Based on pro
Slide 3: Experienced executive management and board
Experienced executive management and board Vilhjálmur Vilhjálmsson, Chairman of the Board First elected in 2013. His experience includes various fisheries-related jobs since 1986, such as CEO of HB Grandi (now Brim). Auður Kristín Árnadóttir, Board Member First elected in 2012. Currently Co-Owner of
Slide 4: Shareholder structure
Shareholder structure Hampiðjan share price outperformed the OMXIGI in the past year 30% Diverse shareholder base with a HAMP 20% +19% leading investor 10% 10 largest shareholders Ownership % 0% Hvalur hf. 41.5% OMXIGI -10% -9% FSN Capital V LP 8.0% -20% Pension Fund of Commerce 7.9% Lífsverk Pensio
Slide 5: Recent awards and recognition
Recent awards and recognition INNOVATION AWARD ICEFISH AWARDS Creditinfo presented Hampiðjan received an Hampiðjan with an award for award for the best new innovation by an established product launched and Vónin company, as part of their was selected as the best Excellent Company initiative. overall
Slide 6: Operations
Operations Operations
Slide 7: Significant geographical diversity
Significant geographical diversity Hampiðjan Mørenot Lithuania Main production location Dutch Harbor Alaska North Atlantic Ocean Main market North Pacific Ocean Market share1, Solid presence in pelagic Hampiðjan incl. Mørenot: trawls but opportunity to 16% fishing gear grow with acquisitions in the
Slide 8: Main operations in three sectors
Main operations in three sectors Fisheries Aquaculture Offshore Production of materials Production of fish pen Production and sale of for fishing gear, nets and nets, mooring systems ropes, strops and ropes, construction of and floating rings. Sale of hardware for seismic trawls, both bottom and var
Slide 9: World leader in advanced fishing gear for large, modern trawlers
Fisheries World leader in advanced fishing gear for large, modern trawlers The originator and backbone of Hampiðjan‘s operations Decades of close co-operation with Icelandic fisheries, World leader in the development which are among the world’s most technologically of efficient advanced, has enabled
Slide 10: Strong Faroese and Norwegian roots in Aquaculture
Aquaculture Strong Faroese and Norwegian roots in Aquaculture The second pillar of Hampiðjan‘s operations Limited presence in aquaculture prior to the acquisition of Aquaculture exposure through Vónin in 2016. The Mørenot acquisition strengthened the acquisitions company’s operations in aquaculture
Slide 11: Decades of experience in Offshore activities
Offshore Decades of experience in Offshore activities Significant segment growth expected in coming years Main activities include sale of ropes, strops and hardware Complete range of products for for seismic vessels, engineered lifting slings for offshore the offshore structures and windmill install
Slide 12: Significant synergy potential through the integration of Mørenot
Significant synergy potential through the integration of Mørenot Sophisticated central production facilities are located in Lithuania 46,000 m2 of Hampiðjan‘s central production mainly takes place in three facilities facilities in Lithuania, totaling 46,000 m2. Base production of twisted and braided
Slide 13: Top tier production facility for ropes, netting and trawls
Top tier production facility for ropes, netting and trawls Main production facility Hampidjan Baltic has contributed immensely to the company‘s success and growth One of the most Hampidjan Baltic spans an area of 21,500 square meters technologically and is located in the city of Šiauliai, Lithuania.
Slide 14: Unique value proposition based on vertical integration
Unique value proposition based on vertical integration Hampiðjan captures a large part of the entire value chain Basic materials Filaments and twine Braided ropes Netting Final product At Hampiðjan Baltic, base Various types of filaments Filaments are twisted and Twines are twisted or braided Produc
Slide 15: Product development is one of Hampiðjan's core values
Product development is one of Hampiðjan’s core values Hampiðjan continues to lead in innovation with advanced materials and sustainable technologies TechIce Warp TechIce Power Warp DynIce Optical Data Heat resistant warps for demanding applications Electrical conductivity with extreme pulling power
Slide 16: Worldwide network of modern netlofts in key strategic locations
Worldwide network of modern netlofts in key strategic locations Netlofts serve as a key component of Hampiðjan operations and distribution - Netlofts serve as an important part of Hampiðjan’s operations. As the direct point of contact with customers, the company’s net lofts Hampiðjan Reykjavík Hampi
Slide 17: Hampiðjan aims to be at the forefront of responsible operations
Hampiðjan aims to be at the forefront of responsible operations Significant emphasis on environmental matters in recent years Hampiðjan aims to be a Georg joined Hampiðjan in leader in innovation by 2022. His main activities producing fishing equipment Hampiðjan aims to develop involve phasing in th
Slide 18: Acquisitions and integration
Acquisitions and integration
Slide 19: Significant expansion in the last 10 years
Significant expansion in the last 10 years Herman Thomsens Vod- og Trawlbinderi Acquired Caley Acquired 100% Acquired 100% Fisheries‘ retail stake. stake. Expanded and service Strengthened presence in the operations. Danish Canary Islands Expanded operations. and Africa. presence in Scotland. Establ
Slide 20: Track record of successful integration of key acquisitions
Track record of successful integration of key acquisitions Hampiðjan has made a number of successful strategic acquisitions in the past 10 years Base point Acquired Consolidation Acquired Consolidation 2015 2016 2016 - 2022 2023 2023 - 2027 Revenues Revenues Revenues Revenues EUR 59 mn. EUR 117 mn.
Slide 21: Acquisition of Mørenot enables significant synergy potential
Acquisition of Mørenot enables significant synergy potential Consolidation unlocks opportunities for stronger positions within core markets Increased geographical coverage Larger geographical footprint will allow Hampiðjan and Mørenot to cross-sell products in their respective market areas. Hampiðja
Slide 22: Vónin has flourished under Hampiðjan ownership
Vónin has flourished under Hampiðjan ownership Case study: Acquisition of Vónin in 2016 Key financials for Vónin prior to and following Hampiðjan‘s acquisition 17.5% 18.2% 17.7% 16.7% 15.7% 14.2% 11.6% 12.1% EBITDA margin EBITDA margin 81.2 At acquisition After integration 71.8 2016 2022 66.8 68.7 6
Slide 23: Financials
(acl enai ee ae 2 Ni ny : Say TENS SNE i eS ~ SN Ss = ANY ~~ SINS ~ lay i ' SOS rei ct = th a Sis A ws ‘i SSN UN Se RS ye he Hh aU ia >
Slide 24: Revenue growth driven by M&A and organic growth
Revenue growth driven by M&A and organic growth Significant growth in the past ten years +23.3% CAGR Hampiðjan with Mørenot acq. 333 Prior to the Mørenot acquisition, Hampiðjan‘s revenue growth was roughly equally driven by external growth through M&A and internal growth. 139 Constant product develo
Slide 25: Attractive EBITDA margin growth in recent years
Attractive EBITDA margin growth in recent years Enabled by successful integration of acquired companies +20.4% CAGR EBITDA has grown from EUR 8m to EUR Hampiðjan with Mørenot acq. 40m in the last 10 years. 16.9% 16.4% 60 15.0% 15.5% 14.8% 15.5% 13.8% 12.8% 13.3% 15,0% EBITDA growth prior to the Møre
Slide 26: Strategic investments in growing segments
Strategic investments in Net CAPEX 35 10% 8.5% growing segments 30 25 6.1% 7.7% 6.2% 7.2% 4.9% 6.7% 4.4% 8% 6% Net CAPEX in 2022 amounted to EUR 8.5m or 4.4% of 20 3.0% 2.4% 4% revenues 15 13.0 11.7 11.5 10 9.0 7.9 7.9 8.5 2% m EUR - Value-adding investment in facilities and equipment in past 5 3.6
Slide 27: Increase in net working capital to react to external challenges
Increase in net working Inventory increased by 24% YoY in 2022 capital to react to external 210 65% challenges 20 23 25 47 52 56 60 65 79 98 55% 50.5% 45.5% 160 41.8% 42.2% 45% - Historically, NWC has been in the range of 35-42% of total 39.7% 40.4% 40.7% 40.3% revenues. 36.9% 37.3% 34 110 35% - In
Slide 28: Strong foundations for future dividends
Strong foundations for future dividends Dividend payments have amounted to 27-44% of net profit in the past five years 10 50% 09 44% 45% 08 40% 36% 07 33% 35% The average dividend for 2018 - 2022 31% 06 30% amounted to 34% of net profit. 27% 05 25% Hampiðjan has delivered a total of EUR 24m in divid
Slide 29: Guidance
Guidance 420-440 Revenue guidance 333 320-340 For the financial year of 2023, Hampiðjan’s revenues are 139 expected to range from EUR 320 - 340m. Revenues in 2027 are expected to range between EUR 420 - 440 million. Revenue growth will be driven by continued 173 195 195 mEUR 162 external and interna
Slide 30: Robust company on a constant growth trajectory
Robust company on a constant growth trajectory Hampiðjan’s investment proposition Historical and proven track record of growth Scalable and profitable business model with attractive margins built on strong foundations. Historical, proven track record of both organic and external growth. Various furt
Slide 31: Offering process
Offering process
Slide 32: Use of Offering proceeds
Use of Offering proceeds Net proceeds of the offering at the minimum price ISK 10.0 bn Planned CAPEX going forward Restructuring of Mørenot’s debt ISK (6.0 bn) 40 8% 8% Investments to realize synergies and expenses, of which: ISK (~4.0 bn) 7% 35 7% 7% Expansion of Hampidjan Baltic and Vónin Lithuani
Slide 33: Key dates of the share offering
Key dates of the share offering ✓ 24 May Prospectus published M T W T F S S 1 2 3 4 5 6 7 ✓ 25 May – 2 June Subscription period starts at 10:00 Thursday, 25 May and ends at 8 9 10 11 12 13 14 MAY 14:00 Friday, 2 June 15 16 17 18* 19 20 21 ✓ 5 June (at the latest) Results of the offering published, a
Slide 34: Minimum price set at ISK 120
Minimum price set at ISK 120 High level comparables EV/EBITDA EBITDA % Attractive multiples in the long term based on growth profile 27.3% Judges Scientific 19,3x 23.3% 20.4% 19.9% Troax Group AB 21,3x Revenue CAGR EBITDA CAGR Last 10 years Last 10 years Marel hf. 18.1x 9.2% 6.7x 5.3x Hampiðjan hf.
Slide 35: Structure of the share offering
Structure of the share offering Total offering size 85,000,000 new shares or ISK 10.2 billion at the minimum price Order Book A Order Book B Price Fixed price of ISK 120 per share Minimum price of ISK 120 per share Offering size 17,000,000 shares (20% of the offering) 68,000,000 shares (80% of the o
Slide 36: Appendix
Appendix
Slide 37: Pro forma financial statements for Hampiðjan and Mørenot
Pro forma financial statements for Hampiðjan and Mørenot Income statement Balance sheet Hampiðjan 2022 Pro forma Hampiðjan 2022 Pro forma EUR thous. EUR thous. Sales 193,759 332,984 Non-current assets 158,884 253,341 COGS (138,408) (245.636) Cash and cash equivalents 12,503 18,117 Gross profit 55,35
Slide 38: Comparables
Comparables General EV/Revenue EV/EBITDA Revenue Margin P/E Market Cap. Est. growth Est. growth Company Name Country Industry LTM 2023 LTM 2023 LTM EBIT LTM EBITDA 2023 (ISKma.) 1 year 2 years Avient Corporation 501 USA Chemicals 1.6x 1.5x 11.0x 9.4x n/a 3% 9% 14% 15.3x Electronic Vaisala Oyj 243 Fi
Slide 39: Hampiðjan
Slide 40: Disclaimer & Confidentiality
Disclaimer & Confidentiality This presentation is prepared by Arion Bank hf. (“the Bank”) regarding specific aspects of the operations of Hampiðjan hf. (“the Company”). The presentation is made at the request of the Company and the company is the original recipient of the presentation. The recipient