2013-03-26 16:32:57 CET
2013-03-26 16:34:05 CET
REGULATED INFORMATION
Eyrir Invest ehf. - Financial Statement Release
Eyrir Invest Results and Annual Report 2012
A year of reshaping core businesses
-- Net asset value is 172 m Euros at year-end 2012 compared to 202 m at
beginning of the year. A 16 m decrease of NAV is a result of strategic
decision of purchasing 9% of own shares and remaining 14 million decrease
is the net loss for the operating year 2012. [2011; profit EUR 1 m]
-- Total assets amount to 370 m Euros at year-end and the equity ratio is 47%
[2011; 51%]
-- Stork Technical Services and Fokker Technologies were reshaped as two
independent companies with new long term financing. Valuation of those
companies was adjusted downward reflecting operational results, new balance
sheets and market multiples
-- Eyrir provided 23 million of new equity to Fokker and Stork TS as part of
the total refinancing
-- The long-term outlook for Eyrir Invest and its core holdings is good. Their
financials are in line with strategy and international benchmarks with net
debt levels at 2-4x EBITDA
In February 2013, Eyrir issued new B-shares for 16 m Euros which further
strengthens its financials. Simultaneously Eyrir secured long term and stable
financing, with extension of 85% of total financing to 2015-2018.
Eyrir Invest's shareholder return has been good since the Company's foundation
in mid-year 2000. Net Asset Value per share at the end of 2012 is 17.1
eurocents compared to 1.4 eurocents at foundation. During the same period, the
MSCI World Index in Euros has declined by 30% or 3% annually on average.
Arni Oddur Thordarson, CEO:
“Eyrir is a long-term strategic business partner focusing on solid and
sustainable future cash flows of operating companies. In recent years, we have
taken several decisive steps to continue to create value superior to market
returns in the long run.
An important milestone was reached last year when Stork Technical Services and
Fokker became fully independent companies with separate long-term financing.
The new financing provides operational flexibility and enables full integration
of RBG into Stork TS.
In beginning of 2013 new investors joined Eyrir Invest with additional equity.
Simultaneously our financial partners extended maturity of our financing
backing up our strategic plans. Our goal is to continue to create superior
values and lock-in great cash proceeds in coming years.”
Consolidated Statement of Comprehensive Income
(in EUR thousands) 2012 2012/6m 2011 2010
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Investment income:
Change in fair value of investment -7.992 24.513 -30.977 64.851
securities
Dividend income 2.489 2.489 0 0
Income from change in accounting treatment 0 0 30.107 0
of
an associate
Share of profit of equity accounted 0 0 11.650 7.491
associates
Net interest expenses -10.528 -5.115 -12.920 -15.873
Net foreign exchange gain (loss) 3.430 -2.727 4.763 -3.254
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Net investment (loss) income -12.601 19.160 2.623 53.215
Operating expenses:
Salaries and salary related expenses 987 527 934 836
Other operating expenses 560 303 732 560
--------------------------------------
--------------------------------------
Operating expenses 1.547 830 1.666 1.396
(Loss) profit for the period -14.148 18.330 957 51.819
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Other compreh. expenses for the period -370 -368 -488 -18.639
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Total comprehensive inc./(exp.) for the -14.518 17.962 469 33.180
period
--------------------------------------
Earn. per share-eurocents (each share 1 -1.37 1.75 -0.09 5.14
ISK)
--------------------------------------
Earn. Per shares for -1.41 1.71 -0.05 3.29
compreh.income-eurocents
--------------------------------------
Consolidated 2012 2012/6m 2011 2010
Statement of Financial Position
--------------------------------------
Assets:
Cash and restricted cash 788 772 12.274 22.758
Share subscription 0 0 0 0
Investment securities 3643.473 373.837 174.320 256.835
Investments in equity accounted 0 0 167.533 143.602
securities
Trade and other receivables 2.820 2.992 2.764 1.201
Operating assets 2.034 2.045 2.126 2.050
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Total assets 370.115 379.646 359.017 426.446
--------------------------------------
--------------------------------------
Equity and Liabilities
Total equity 172.401 204.880 173.098 186.648
Trade and other payables 3.210 203 226 1.908
Liabilities 194.504 174.563 185.693 237.890
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Total equity and liabilities 370.115 379.646 359.017 426.446
--------------------------------------
Equity ratio 46.6% 54.0% 48.2% 43.8%
Eyrir Invest's balance sheet is strong with 370 m Euros in total assets and a
47% equity ratio. In early 2013, Eyrir Invest's financials were further
strengthened as new institutional investors and pension funds joined Eyrir and
provided 16 million of new capital with issuance of B-class of shares.
Eyrir Invest's core holdings are a 33% share in Marel and 17% holding in Stork
TS and Fokker. In addition, Eyrir Invest invests in prominent growth companies
through its venture capital subsidiary, Eyrir Sprotar slhf.
Marel
Eyrir Invest has been the principal shareholder in Marel hf. since 2005, a
period of rapid external and internal growth. Revenues in 2012 were EUR 714
million with EBITDA of 86 million compared to EUR 129 million revenues in 2005.
Marel revenues have grown organically by 29% in the past four years. At the
same time Marel introduced a steady pipeline of new products and strengthened
its global sales and service network. New equipment sales in markets outside
W-Europe and N-America are around 50% of total sales compared to a 20% share a
few years ago.
In 2012, Marel celebrated 20 years of being listed on Nasdaq OMX Iceland.
Marel´s share price increased to 83 eurocents per share at year end 2012
compared to 78 eurocents at the beginning of the year. Profits to Eyrir
attributed to shares in Marel are 12.8 m including dividend income.
Stork TS and Fokker become independent companies
Arle, Eyrir and other prominent investors fully acquired and delisted Stork BV
in November 2007. Simultaneously Marel acquired Stork Food System that was
formerly part of the industrial conglomerate Stork BV.
Last year a major reshaping took place at Stork, as Stork TS and Fokker became
independent companies, with separate long term financing and governance
structures. Those two international companies have now operational flexibility
and strength to grow within two attractive industries.
Eyrir Invest uses fair value approach to value Stork TS and Fokker.
Reorganizing, refinancing and the cleaning up of balance sheets led to downward
adjustments of valuation of Eyrir´s holding by 18.6 million. In conjunction
with the refinancing Eyrir Invest provided EUR 23 million of new equity to
those companies and maintained its 17% shareholding in both companies.
Stork TS
Stork TS made a decisive step in spring 2011, where geographical footprint was
increased significantly by the acquisition of RBG in Scotland. The landmark
acquisition transforms Stork TS into a “tier-one” oil, gas and energy services
provider with around 14,400 employees serving clients such as Shell, BP and
Exxon. More than 60% of its revenues are now generated outside Benelux with
high growth potential in the North Sea and S-America. Revenues at Stork TS
increased organically last year and are now around EUR 1.4 billion with
operating EBITDA close to 100 million[1].
Fokker
Fokker Technologies revenues are 770 million Euros in 2012 with EBITDA around
75 million. Fokker is a tier one supplier for companies such as Boeing, Airbus,
Gulfstream and Lockheed Martin. Around 3,700 employees work in three business
units of Fokker designing parts, wiring systems as well as servicing fleets.
Fokker Technologies entered into long term partnership with Comac in China and
opened up new facilities in Mexico which demonstrates its capabilities and
helps the company establish its footprint in the fastest growing region in
commercial aerospace.
Subsequent events
In February 2013 Eyrir Invest issued new B-shares for 16 m Euros. B-shares
carry no votes but have a preferential right to dividend payments. The issuance
was subscribed to by institutional investors and pension funds. In the
beginning of 2013, Eyrir also announced that it had reached an agreement with
the majority of its lenders in extending the maturity of over 85% of its total
borrowings to 2015 - 2018.
Outlook
Looking ahead, there is expected to be good growth within the industries where
Eyrir Invests core holdings are placed - the food industry, energy industry and
aerospace industry. In the past few years Eyrir´s core assets have strengthened
their market positions and are now in a good position to harvest well.
Nevertheless, results may vary from year to year.
For further information, contact:
Arni Oddur Thordarson, CEO of Eyrir Invest
Tel: +354 525-0200
www.eyrir.is
About Eyrir
Eyrir Invest is an international investment company. Eyrir Invest places great
emphasis on participating in the operations and strategic planning of its core
holdings. Eyrir Invest's core holdings are a 33% share in Marel and 17% holding
in Stork TS and Fokker. In addition, Eyrir Invest invests in prominent growth
companies through its venture capital subsidiary, Eyrir Sprotar slhf. Eyrir's
“buy and build” strategy has delivered good returns since the company's
foundation in mid-year 2000.
Forward-looking statements
Statements in this press release that are not based on historical facts are
forward-looking statements. Although such statements are based on management's
current estimates and expectations, forward-looking statements are inherently
uncertain. We, therefore, caution the reader that there are a variety of
factors that could cause business conditions and results to differ materially
from what is contained in our forward-looking statements, and that we do not
undertake to update any forward-looking statements. All forward-looking
statements are qualified in their entirety by this cautionary statement
[1] Stork TS bonds are listed and Stork TS will publish numbers in April 2013.
LTM EBITDA in 3Q 2012 are EUR 99 m.
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