MIG HOLDINGS S.A. Investor Relations InvestorRelations@marfingroup.grwww.marfininvestmentgroup.com
Investor Release
1 September 2015
MARFIN INVESTMENT GROUP
FINANCIAL RESULTS: H1 2015
Significant profitability improvement to consolidated EBITDA from business operations1in the first half of the year: €61.7m profit vs.
€11.8m in H1 2014
For the first time since H1 2009 the Group reports profit at the level of consolidated EBIT: €9.2m profit vs €37.1m loss in H1 2014
• Consolidated H1 2015 revenues increased by €26m, or 4.7% y-o-y, to €586.1m, despite prolonged challenging economic and market conditions in the majority of Greece's business sectors.
• Significant increase in consolidated EBITDA from business operations (€61.7m profit vs €11.8m in H1 2014). The profitability increase is primarily attributed to the improvement of subsidiaries ATTICA and VIVARTIA as well as to further progress in the remaining subsidiaries' results. Reported consolidated EBITDA (including holding companies and non-recurring items) at €54.5m profit vs.
€5.2m in H1 2014.
• Reported EBITDA margin improved significantly to 9.3% vs. 0.9% in prior year period.
• For the first time since H1 2009 the Group reports profit at the level of consolidated EBIT (€9.2m profit vs €37.1m loss in H1 2014).
• Consolidated net loss after tax and minorities of €51.9m (including €45.3m depreciation charges), compared to a relevant bottom-line loss of €76.2m in H1
2014.
• Net Asset Value (NAV) on 30.06.2015 at €838m, corresponding to €0.89 per share.
• Cash balances, including restricted cash, of €110m at group and €5.5m at parent company level. Consolidated gross debt declined by €6m vs 31.12.2014 to
€1.75bn. Group debt capital structure improved further in favour of long-term
liabilities (account for 53% of consolidated gross debt vs. 47% on 31.12.2014), courtesy of the gradual completion of the Group's debt restructuring-
refinancing.
1 Consolidated EBITDA from business operations is defined as Group reported EBITDA excluding holding companies and non-recurring items
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Investor Release
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• July 2015: MIG signed an agreement for the sale of its stake in FAI rent-a-jet AG and FAI Asset Management GmbH to the minority shareholder Axtmann Holdings AG and to members of the Axtmann family. The transaction consideration, including a dividend payment, is €25.2m in cash, payable in instalments. Additionally, the transaction will result to the reduction of Group
consolidated gross debt by €49.9m.
Summary of key financials | ||||
GROUP (consolidated in €m) | 6Μ 2014 | 6Μ 2015 | ||
Sales | 559.9 | 586.1 | ||
EBITDA business operations(1) | 11.8 | 61.7 | ||
% margin | 2.1% | 10.5% | ||
EBITDA(2) | 5.2 | 54.5 | ||
% margin | 0.9% | 9.3% | ||
Net results after tax and minorities | (76.2) | (51.9) | ||
GROUP (consolidated in €m) | Q1 2014 | Q1 2015 | Q2 2014 | Q2 2015 |
Sales | 257.3 | 269.2 | 302.6 | 316.8 |
EBITDA business operations(1) | (6.2) | 18.6 | 18.0 | 43.1 |
EBITDA(2) | (9.1) | 15.5 | 14.4 | 39.0 |
(1) EBITDA from business operations is defined as Group reported EBITDA excluding holding companies and non-recurring items (2) Reported Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) |
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Investor Release
1 September 2015
KEY EVENTS AND HIGHLIGHTS OF H1 2015:
VIVARTIA
H1 2014 H1 2015
Sales €274.1m €292.0m FMCG (Dairy & Frozen) €203.9m €220.5m Food Services (FSE) €72.7m €74.6mEBITDA €3.8m €19.4m FMCG (Dairy & Frozen) €5.9m €18.2m Food Services (FSE) €(2.0)m €1.4mNet Income after minorities €(23.7)m €(12.2)m
• Key highlights of H1 2015 performance are (a) revenue growth (6.5% y-o-y to €292.0m), (b) significant EBITDA improvement to €19.4m profit vs. €3.8m in H1 2014, attributed to efficiency improvements and ongoing efforts to rationalise costs and (c) return to profitability at the EBIT level (€3.9m profit vs. €10.4m loss in H1 2014).
• Dairy: key highlights of H1 2015 performance are (a) significant operating profitability (EBITDA) improvement (€8.5m profit vs €1.1m in H1 2014), thanks to structural efficiency improvements, lower raw material costs as well as innovative product launches in value accretive segments (e.g. cereal bars, yogurt with oat), (b) strengthening of market position in Greece (DELTA remains the undisputed leader in the Greek total milk market with 26.6% share in H1 2015 vs. 25.4% in H1 2014), despite adverse market conditions in the Greek Dairy market (total market revenue declined 7% y-o-y and white milk market declined 9.3%), (c) yogurt exports in Italy (Granarolo partnership) continue to show very strong consumer acceptance, resulting in 5.6% market share (or 12.4% market share of handlers) as of 30.06.2015, more than a year since launch (April 2014).
• Frozen Foods: key highlights of H1 2015 performance are (a) revenue growth of 18.6% y-o-y on a comparable basis (excluding the positive effect from the change of the consolidation method of Elliniki Zimi M. Arabatzis SA) vs. 8.0% and 4.0% y-o-y growth for the frozen vegetables and frozen dough total markets in Greece respectively, (b) operating profitability improvement (EBITDA reached €9.7m, 25% y-o-y increase on a comparable basis) and (c) strengthening of market position in Greece, since the division remained the undisputed leader in the frozen vegetables market (65.1% market share in H1 2015 vs. 63.2% in H1 2014) as well as the leader among branded products in the frozen dough market (25.4% market share in H1 2015 vs. 25.1% in H1 2014), which validates the effectiveness of the strategy of increasing brand awareness and penetration (especially in frozen vegetables).
• Food Services (FSE): key highlights of H1 2015 performance are (a) revenue growth of
2.6% y-o-y, despite prolonged challenging market conditions in Greece (declining consumption). Note that FSE like-for-like revenues for the network increased 10.3% y-o-
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y, while Travel related business (airport, vessels and national road motorist service stations) like-for-like revenues increased 14.2% y-o-y, (b) operating profitability turnaround (EBITDA reached €1.4m profit vs. €2.0m loss in H1 2014), driven by ongoing cost cutting efforts, network and product portfolio rationalisation as well as the improved performance at Goody's Burger House (the new concept of Goody's currently
being rolled out with 57 POS across Greece).
ATTICA GROUP
H1 2014 H1 2015
Sales €104.2m €108.9m EBITDA €(2.2)m €19.0m Net Income after minorities €(21.1)m €(5.8)m
• The key features of H1 2015 performance are (a) revenue growth (4.5% y-o-y) and (b)
significant profitability turnaround at both EBITDA (€19.0m profit vs. €2.2m loss in H1
2014) and EBIT level (€7.3m profit vs. €14.3m loss in H1 2014), attributed to operating leverage and ongoing efficiency improvements.
• The ongoing active fleet deployment improved fleet capacity utilization per sailing, as well as, reduced fuel oil consumption, which, combined with the fuel oil price reduction, have contributed to the substantial decrease in COGS (-15.5% y-o-y). Notably in H1 2015, the fuel cost per metric tonne, expressed in € terms, declined c30% y-o-y.
•Note that the passenger shipping industry is highly seasonal, with the highest traffic observed between July-September and the lowest between November-February. That said performance during the 1stsemester of the year is not indicative of full-year trends.
• As regards Attica's traffic volumes (data derived from the Greek Port Authorities and
Attica estimates; y-o-y change vs H1 2014):
./ Domestic market routes (Cyclades, Dodecanese, North Aegean, Crete):
o passengers: +6.8%
o private vehicles: +9.2%
o freight units: +9.8%
o sailings: -1.6% (one vessel less in y-t-24 April 2015 vs. prior year period)
./ Adriatic Sea routes (Patra-Igoumenitsa-Ancona and Patra-Igoumenitsa-Bari):
o passengers: -20.4%
o private vehicles: -23.5%
o freight units: -3.5%
o sailings: -12.9% (one vessel less in H1 2015 vs. prior year period)
• In April 2015, Attica took delivery, as part of its fleet expansion initiatives, of the Ro-Pax vessel Blue Galaxy from shipowning company Hellas 2 Leasing M.C. under a long-term bareboat charter agreement. Blue Galaxy has overall length of 192 meters, a speed of
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24 knots and capacity to carry 1,740 passengers and 703 private vehicles or a combination of 150 freight units and 70 private vehicles. The vessel has been refurbished fully to comply with Attica's high-quality standards and it operates as of
24.04.2015 on the Piraeus-Chania (Crete) route as part of the joint service with ANEK.
• In May 2015, SUPERFAST FERRIES celebrated 20 years since its first sailing. During this
20-year period in operation, SUPERFAST FERRIES, headquartered in Greece with its vessels flying the Greek flag, has transported more than 12 million passengers, 2.5 million cargo units and 2.5 million private vehicles in the Adriatic, Baltic and North Sea,. The next goal is to develop new routes maintaining its high-quality services.
• In July 2015, Attica was granted approval to operate a marine route between the United States and Cuba (travel or transportation of persons, baggage or cargo). Attica is in the process of obtaining the relevant regulatory and other approvals from the Cuban government. Among Attica's total fleet of 13 vessels (of which 12 are owned) two have initially been identified for this service, each with carrying capacities of approximately
1,700 passengers, 700 berths and 2,000 lane meters garage (approximately 570 cars).
• Attica's management assesses plans for further turnover growth including alternative fleet deployment combinations, as well as, development of new routes in Greece and abroad.
HYGEIA GROUP
H1 2014 H1 2015
Sales €115.1m €114.5m EBITDA €10.3m €11.9m Net Income after minorities €(5.6)m €(1.8)m
• The key feature of H1 2015 performance is further improvement to operating profitability (16% y-o-y increase in EBITDA to €11.9m vs. €10.3m in H1 2014), despite marginal revenue decline (-0.5% y-o-y to €114.5m).
• The operating profitability improvement is attributed to ongoing efficiency improvements (group EBITDA margin widened by c150bps y-o-y to 10.4%)
• Sales and EBITDA have been adversely impacted by the legal obligation to implement the automatic claw back and rebate mechanisms in the healthcare sector (imposed by law in July 2013). The relevant charge in H1 2015 is €6.7m vs. €6.5m in H1 2014.
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Investor Release
1 September 2015
SINGULARLOGIC
H1 2014 H1 2015
Sales €25.6m €22.8m EBITDA €1.5m €2.9m Net Income after minorities €(1.6)m €(0.4)m
• The key feature of H1 2015 performance is the operating (EBITDA) profitability improvement (€2.9m profit vs. €1.5m in H1 2014), despite the revenue decline owing to the protracted challenging market conditions (declining IT spending, particularly among SMEs and significant delays in public sector projects). The operating profitability improvement is attributed to further efficiency gains, as well as continued revenue mix improvements towards proprietary rather than 3rd party solutions, as evident in the significant EBITDA margin expansion (c720bps y-o-y to 12.9%).
•Following a very strong start to the year in Q1 (the strongest 1stquarter in recent years), Q2 2015 has been adversely impacted by the heightened political uncertainty in Greece, especially in June 2015, which has caused a severe disruption to the IT sector, by means of a significant reduction in IT spending by the corporate segment. Take note that the business expectations index in the IT sector plummeted in July 2015 near all-time lows (34.1 vs. historic low of 30.3 in April 2012).
• SingularLogic has been the country's elections manager since 1981. In this context, the company was assigned the collection, processing and broadcasting of (a) the 2015
Parliamentary Elections (January 2015) and (b) the Referendum on 5thJuly 2015.
• In June 2015, the company signed an agreement for the long-term refinancing of the entirety of the outstanding bond loans, through the issue of two new syndicated bond loans amounting to €56.9m. The company completed the long-term refinancing of the
entirety of its existing loan obligations.
FAI AVIATION GROUP (FAI)
H1 2014 H1 2015
Sales €35.5m €39.9m EBITDA €5.1m €10.5m Net Income after minorities €0.9m €3.0m
• Revenues registered a robust 12.4% y-o-y increase, on the back of higher fleet utilisation, particularly courtesy of the rising demand for the company's specialized air ambulance fleet.
• Reported EBITDA more than doubled y-o-y to €10.5m, reflecting operating leverage benefits, with the relevant margin expanding by c1,190bps y-o-y to 26.3%.
• Bottom-line results in H1 2015 were burdened by €1.5m net FX losses (vs. €0.2m net losses in H1 2014), while H1 2014 had been burdened by €1.6m losses from fair value adjustments to investment properties.
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Investor Release
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• In July 2015, MIG signed an agreement for the sale of its 51% stake in FAI rent-a jet AG and its 50.1% stake in FAI Asset Management GmbH to the minority shareholder Axtmann Holdings AG and to members of the Axtmann family for a total cash consideration of €25.2m, including dividend, payable in instalments. Additionally, the transaction will result to the reduction of Group consolidated gross debt by €49.9m,
corresponding to the aggregate gross debt position of the companies as of 30.06.2015.
SUNCE BLUESUN
H1 2014 H1 2015
Sales €8.6m €9.6m EBITDA €(1.7)m €(1.6)m Net Income after minorities €(3.6)m €(3.5)m
• The first half of the year is adversely impacted by seasonality, since Sunce's hotels remain closed during the first quarter of each year. Traditionally, the first half of the year represents approximately 25% of full-year revenues.
• In H1 2015, the number of guests increased 16.4% y-o-y vs. prior year period, while the average length of stay stood at 5.0 days, unchanged vs. H1 2014.
ROBNE KUCE BEOGRAD (RKB)
H1 2014 H1 2015
Sales €2.2m €2.4m EBITDA (recurring) €(0.1)m €1.4m Net Income after minorities €(9.0)m €(22.8)m
•On 30.06.2015, RKB's total leased area was approximately 58,200m2vs. approximately
63,450m2on 31.12.2014.
• On 30.06.2015, RKB had leased 29.1% of its total portfolio vs. 30.4% on 31.12.2014.
• Bottom-line results in H1 2015 have been adversely impacted by €11.9m loss related to the sale of investment properties.
• In the short-to-medium term, RKB's priorities are (a) to concentrate in the commercial properties in Belgrade (aimed at generating higher rental income), (b) to disinvest from non-core properties and (c) to create a solid client base, consisting of international,
anchor tenants, so as to further improve its financial performance.
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Investor Relations InvestorRelations@marfingroup.grwww.marfininvestmentgroup.com
Investor Release
1 September 2015
INCOME STATEMENT (in Euro million)
THE GROUP
30/06/2015 30/06/2014
Sales Cost of sales | 586.1 -447.6 | 559.9 -462.6 |
Gross profit Administrative expenses Distribution expenses Other operating income & expenses | 138.4 -55.1 -87.2 13.1 | 97.3 -55.1 -88.0 8.7 |
Profit / (loss) before taxes, financing and investment activities Other financial results Financial expenses Financial income | 9.2 -6.1 -53.7 1.2 | -37.1 4.9 -48.8 1.7 |
Income from dividends Share in net result of companies accounted for by the equity method | 0.0 -1.7 | 0.0 -0.5 |
Profit/(loss) before income tax Income tax | -51.1 -1.3 | -79.7 -0.6 |
Profit/(loss) after tax for the period from continuing operations Net profit/(loss) from discontinued operations | -52.4 0.3 | -80.3 -1.8 |
Profit/(loss) for the period | -52.1 | -82.1 |
Attributable to: Owners of the parent company | -51.9 | -76.2 |
Owners of the parent from continuing operations Owners of the parent from discontinued operations Non-controlling interests Non-controlling interests from continuing operations Non-controlling interests from discontinued operations | -52.2 0.3 -0.2 -0.2 0.0 | -74.4 -1.8 -5.9 -5.9 0.0 |
EBITDA | 54.5 | 5.2 |
EBITDA from Business Operations | 61.7 | 11.8 |
INCOME STATEMENT (in Euro million)
ΤΗΕ COMPANY
30/06/2015 30/06/2014
Profit/(Loss) from investments in subsidiaries & Ιnvestment Portfolio Profit/(Loss) from financial assets at fair value through profit or loss | -60.4 0.0 | -114.4 -1.7 |
Other income | 0.0 | 0.0 |
Total operating income Fees and other expenses to third parties Wages, salaries and social security costs Depreciation Other operating expenses | -60.4 -1.7 -2.4 -0.2 -2.1 | -116.1 -1.7 -2.5 -0.2 -2.2 |
Total operating expenses Income from cash and cash equivalent Interest and similar expenses Other financial results | -6.4 1.0 -18.5 0.0 | -6.6 1.5 -12.3 0.0 |
Profit/(loss) before tax | -84.3 | -133.4 |
Income tax | 0.0 | 0.0 |
Profit/(loss) after tax for the period | -84.3 | -133.4 |
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Investor Release 1 September 2015 | ||
STATEMENT OF FINANCIAL POSITION (in Euro million) | THE GROUP | |
Tangible & Intangible assets | 30/06/2015 31/ 1,742.6 | 12/2014 1,755.0 |
Goodwill | 270.7 | 270.6 |
Investments in associates | 49.7 | 51.7 |
Investment portfolio | 0.9 | 0.9 |
Property investments | 312.6 | 316.6 |
Trading & financial instruments through P&L | 7.1 | 0.9 |
Cash, cash equivalents and restricted cash | 110.1 | 140.6 |
Other current & non-current assets | 516.5 | 491.8 |
Assets held for sale | 0.0 | 0.0 |
Total assets | 3,010.2 | 3,028.0 |
Shareholders equity | 452.7 | 500.6 |
Non-controlling interests | 125.5 | 127.4 |
Total equity | 578.2 | 628.0 |
Long term borrowings | 922.9 | 825.7 |
Short term borrowings | 823.3 | 926.4 |
Other current & non-current liabilities | 685.8 | 647.9 |
Liabilities related to Assets held for sale | 0.0 | 0.0 |
Total liabilities | 2,432.0 | 2,400.0 |
Total equity & liabilities | 3,010.2 | 3,028.0 |
THE COMPANY
30/06/2015 31/12/2014
Tangible & Intangible assets | 1.6 | 1.8 |
Investment in subsidiaries | 1,258.7 | 1,317.9 |
Investments in associates | 0.0 | 0.0 |
Investment portfolio | 0.0 | 0.0 |
Trading & financial instruments through P&L | 0.8 | 0.8 |
Cash, cash equivalents and restricted cash | 5.5 | 50.8 |
Other current & non-current assets | 289.6 | 286.8 |
Total assets | 1,556.1 | 1,658.1 |
Shareholders equity | 838.2 | 922.6 |
Total equity | 838.2 | 922.6 |
Long term borrowings | 509.8 | 378.6 |
Short term borrowings | 177.6 | 284.8 |
Other current & non-current liabilities | 30.5 | 72.1 |
Total liabilities | 717.9 | 735.5 |
Total equity & liabilities | 1,556.1 | 1,658.1 |
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Investor Relations InvestorRelations@marfingroup.grwww.marfininvestmentgroup.com
Investor Release
1 September 2015
About MIG: Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and in Southeast Europe (SEE). The Company believes it is uniquely positioned to take advantage of an expanding array of investment opportunities in this region; opportunities in which traditional investment vehicles lacking MIG's regional focus, scale, expertise, and/or its investment flexibility and financial resources, may find difficult to identify and exploit.
MIG in its current structure has been listed on the Athens Stock Exchange since July 2007. Its portfolio includes leading companies in sectors across the SEE region, grouped into Food & Beverages, Transportation & Shipping, Healthcare, IT, Real Estate and Tourism & Leisure. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in SEE; Attica Group, a leading passenger ferry operator in the Eastern Mediterranean; Hygeia Group, a prominent integrated private hospitals and clinics group, with the leading general hospital facilities and maternity clinics in Greece; SingularLogic, the leading IT operator in Greece; Skyserv Handling a leading ground handling services provider in Greece; Sunce (Bluesun) a leading hospitality and leisure group in Croatia; Hilton Cyprus, the only 5-star hotel in the capital city of Nicosia and Robne Kuce Beograd (RKB), owner of
the largest commercial real-estate portfolio in Serbia.
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