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Investor Presentaiton

ISI ICELAND SEAFOOD October 2019 Main Market Listing and Offering of new shares Strong cashflow generation Financial activities Growth requires working capital . . . As a part of the company's value added products are frozen and seasonal they require inventory build up As Iceland Seafood's average payment terms with its suppliers is shorter than their customers average payment terms growth increases working capital A large part of working capital is financed through local banks in Spain, currently at a margin of about 1% • . With increased working capital financial activities will increase Cashflow (EURM) Operating profit Depreciation and amortization Other 2016 2017 2018 2019E 4.5 4.6 7.9 13.8 0.8 0.9 1.3 2.2 0.0 (0.0) (0.3) 0.0 Changes in working capital 2.3 (6.7) (0.9) (4.6) operations, which is a key driver Cash from operations before interests and taxes 7.7 (1.2) 8.0 11.4 • Investments in current in increasing the groups PBT to EUR 20m in the next 3-5 years, will partly be financed be debt • It is assumed the proposed equity increase will be used to lower current debt which can be increased again as needed when investment opportunities arise Interest paid/received Income taxes paid Net cash to discontinued operations Net cash generated by operating activities Investing activities Financial activities Cash flow for the period (1.4) (1.3) (2.0) (2.6) (0.7) (0.8) (1.8) (2.1) 1.0 (0.0) (0.0) (1.7) 6.5 (3.4) 4.1 5.0 (1.2) (0.7) (9.9) (4.4) (6.1) 4.5 7.7 (1.5) (0.8) 0.4 1.8 (0.9) *Cash flow assumes proposed equity increase will be used to temporally decrease debt instead of increasing cash.
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