Borgestad Asa · OSL:BOR
Borgestad Asa — Q3 2019 Earnings Presentation
23 slides from Borgestad Asa's earnings presentation, October 2019
Slide 1: Borgestad ASA Investor presentation Q3 2019
Borgestad ASA Investor presentation Q3 2019
Slide 2: Table of contents
Table of contents Introduction to Borgestad Borgestad Properties Borgestad Industries Financials 2
Slide 3: Borgestad at a glance
Borgestad at a glance Background and description Simplified company structure • Founded in 1904 by Norwegian PM Gunnar Knudsen - The company was a result of the merger of three limited partnerships owning steamships • Listed on the Oslo Stock Exchange in 1917 under its former name Aktieselskapet Bor
Slide 4: Borgestad highlights
Borgestad highlights 1 Diversified and sustainable • The oldest company on Oslo Børs; founded in 1904 and listed in 1917 conglomerate • Diversification through investments in real estate and refractory industry with >100 years’ • Growth in revenues and profitability history Since 1917 2 Properties •
Slide 5: Table of contents
Table of contents Introduction to Borgestad Borgestad Properties Borgestad Industries Financials 5
Slide 6: Solid and steady EBITDA contribution
Solid and steady EBITDA contribution Revenue (NOKm) EBITDA (NOKm) Growth: 6% 1% 15 % Margin: 48 % 50 % 43 % 50 % NOKm NOKm 79 80 80 68 69 70 70 65 60 60 50 50 40 40 40 34 31 30 30 30 20 20 10 10 0 0 2016 2017 2018 Q3 2019 LTM 2016 2017 2018 Q3 2019 LTM 6
Slide 7: Positive trend expected to continue in 2020
Positive trend expected to continue in 2020 Latest trends and development Revenue development (NOKm) • Agora Bytom has a strong position in its local market Growth: 15 % 26 % • Expecting a continued increase in revenues and EBITDA 79.1 - Driven by the unique location of Agora Bytom and 69.0 increase
Slide 8: Agora Bytom – key facts and location
Agora Bytom – key facts and location Key information about the property Prime location in Bytom Location Bytom, Poland Primary market 320 000 inhabitants Visitors 6,100,000 (2018) Completion 2010 30,658 sq.m (52,000 sq.m Total GLA (sq.m) gross) 4 floors above ground and Floors 1 floor below ground.
Slide 9: Diversified tenant base and decreased risk related to renewals
Diversified tenant base and decreased risk related to renewals Decreased renewal risk Highly diversified tenant base • Several renewals to kick in November Lettable area per tenant 100.0% 2020 • Borgestad is well prepared and has a 58.9% clear strategy for all leases expiring in November 2020 2.1% 2
Slide 10: Solid underlying fundamentals for Agora Bytom
Solid underlying fundamentals for Agora Bytom Strong underlying trend in Poland Consistently improving retail sales (turnover ‘11-’19) • Positive development in retail sales (6.5% YTD, 4.9% YoY) 25,000,000 • Basket growing rapidly, 7.7 % YTD, and 10.2 % YoY in Q3 20,000,000 • Footfall has stabilised
Slide 11: Table of contents
Table of contents Introduction to Borgestad Borgestad Properties Borgestad Industries Financials 11
Slide 12: Introduction to Borgestad Industries
Introduction to Borgestad Industries Key facts Customer segments • Supplier of heat-resistant products and services - Key input in all industries working with temperatures above 200 °C - Refractory products: Manufactures bricks, clay, concrete prefabricated products and accessories - Refractory serv
Slide 13: Increasing revenue and EBITDA
Increasing revenue and EBITDA Revenue (NOKm) EBITDA (NOKm) Growth: 1% 5% 8% Margin: 2.8 % 5.1 % 3.9 % 5.0 % NOKm NOKm 900 60 823 55 800 761 717 727 50 700 45 41 600 40 37 35 500 30 30 400 25 20 300 20 15 200 10 100 5 0 0 2016 2017 2018 Q3 2019 LTM 2016 2017 2018 Q3 2019 LTM 13
Slide 14: Positive development in the industry segment - expected to continue in 2020
Positive development in the industry segment - expected to continue in 2020 Recent trends and development Revenue development (NOKm) • Market strategy and organisational changes materialising Growth: 8% 2% - Turnover from installation is the main driver 823.0 761.0 - Strong development in 12 month r
Slide 15: Höganäs Borgestad has identified and initiated several improvement programs
Höganäs Borgestad has identified and initiated several improvement programs • Cost saving program Completed • Restructuring - simplification of ownership structure • Sourcing of manpower for projects • Increased focus on productivity: New key employees within production for 2019 - New production man
Slide 16: Increased production will improve results
Increased production will improve results Comments Production sensitivity per ton of bricks • Volume-based production related Factory cost per ton Standard cost per ton Factory cost per ton to bricks • Stable production cost with variation of +/- 2,500 ton • Increased production gives lower factory
Slide 17: Table of contents
Table of contents Introduction to Borgestad Borgestad Properties Borgestad Industries Financials 17
Slide 18: Financials
Financials Revenue (NOKm) EBITDA (NOKm) Growth: 5% 2% 4% 10 % Margin: 6% 8% 6% 8% NOKm NOKm 1,000 100 910 900 90 827 781 793 800 80 70 700 70 62 600 60 50 500 50 43 400 40 300 30 200 20 100 10 0 0 2016 2017 2018 Q3 2019 LTM 2016 2017 2018 Q3 2019 LTM 18
Slide 19: Key financials
Key financials P&L 2019 2018 2019 2018 (NOK 1 000) 01.07 - 30.09 01.07 - 30.09 01.01 - 30.09 01.01 - 30.09 Revenues 261 047 252 312 682 427 599 716 COGS (60 435) (84 549) (212 153) (216 135) Personnel (84 980) (78 142) (223 924) (197 052) Other OPEX (81 580) (70 429) (191 031) (151 283) EBITDA 34 05
Slide 20: Quarterly sales and EBITDA development
Quarterly sales and EBITDA development Financials (NOKm) Sales EBITDA EBITDA% % 320 40% 280 267 261 35% 240 233 30% 210 212 203 25% 200 185 190 167 178 171 172 171 155 20% 160 142 13% 15% 120 11% 9% 8% 9% 8% 8% 8% 10% 6% 7% 7% 80 2% 2% 5% 40 -1% -1% 0% 0 -5% -40 -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 21: Balance sheet
Balance sheet Financials 2019 2018 2019 2018 (NOK 1 000) 30.09 31.12 (NOK 1 000) 30.09 31.12 Equity 450 064 439 303 Intangible Assets 120 293 116 535 PP&E 120 787 134 342 Secured Debt 544 422 530 261 Investment Properties 925 392 941 136 Bond 298 555 293 791 Other Financial assets 55 406 57 246 Othe
Slide 22: Positive trend expected to continue in 2020
Positive trend expected to continue in 2020 • Borgestad expects a stronger Q4 in 2019 compared to last year - The operations of the Borgestad Group are developing positively - Underlying trends are moving in a positive direction • Continued growth expected in Borgestad Properties in 2020 - Growth in
Slide 23: Gunnar Knudsensveg 144 3712 Skien Norway
Gunnar Knudsensveg 144 +47 35 54 24 00 3712 Skien [email protected] Norway borgestad.no