Main Market Listing and Offering of New Shares
ISI
ICELAND
SEAFOOD
October 2019
Main Market Listing and
Offering of new shares
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Working capital and its
indebtedness
Market practice of shorter payment terms to
suppliers explains working capital needs
Inventory requirements and the fact that average payment terms with
suppliers of seafood is shorter than the average payment terms of end
customers create a working capital need for companies like Iceland
Seafood
In most recent years Iceland Seafood's payables have amounted to 35-
39% of its inventory and receivables. Part of working capital is debt
financed, largely in Spain with favourable terms, currently close to 1%
Working capital
•
Moderate indebtedness of inventory and
receivables creates flexibility
In most recent years Iceland Seafood's indebtedness of inventory and
receivables has been between 60-66% at year-end. This is well below
the maximum drawdown ratios
Following the proposed equity increase, the ratio can be expected to be
below 40% all else being equal
Working capital indebtedness
125
60%
150
100%
150
90%
120
80%
120
90
62
99
70%
65
66%
60%
90
50%
60
37%
39%
40%
60
36%
35%
66
35
30%
33
53
30
62
66
20%
30
31
10%
35
20
0
0%
0
2016
2017
2018
2019E
2016
2017
Inventories
Receivables
Payables
Inventory and receivables
39
Revolving credit
51%
100%
130
80%
60%
39%
64
40%
20%
50
0%
2018
2019E
Indebtness ratio (right axis)View entire presentation