Investor Relations
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Investor Release 16 November 2011
MARFIN INVESTMENT GROUP FINANCIAL RESULTS: NINE MONTHS 2011
Quarterly increase of 10.3% in consolidated sales for Q3 to €450.8m, compared to €408.6m in Q2
Group EBITDA from continuing operations more than tripled reaching €40.8m in Q3, compared to €10.0m in Q2
Gross profit increased quarterly by 49.8% in Q3 to €110.1m, compared to €73.5m in Q2
For the first nine months, consolidated sales reached €1,208.8m, compared to €1,355.7m in 9Μ 2010
Gross profit for 9M amounted to €206.9m, compared to €243.6m in 9M 2010
At company level, the loss after tax for the nine months amounted to €6.6m
At group level, the consolidated loss after tax and minorities for the nine months from continuing and discontinued operations amounted to €125.4m, compared to a comparable loss of €223.9m the year before (excluding impairments taken in 2010) recording a significant improvement
MIG’s Net Asset Value stands at about €2.0bn, or €2.55 per share despite sharp market declines; current cash at company level amounts to €267.4m
Recent announcement of a Convertible Bond Loan (“CBL”) of up to €660,281,301 to be issued in two tranches
On November 11, MIG announced that it had reached a strategic agreement with the Abu Dhabi Mar/Privinvest Group of companies to jointly pursue and exploit investment opportunities in Greece, Cyprus and the region
KEY FINANCIAL HIGHLIGHTS
Marfin Investment Group (MIG) has reported its financial results for the first nine months of 2011:
Investor Relations
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Investor Release 16 November 2011
Consolidated 9M sales reached €1,208.8m At group level, the consolidated loss after tax from continuing and discontinued operations for the nine months amounted to €125.4m, while the loss amounted to €6.6m at company level NAV stood at €1,960.7m at the end of the first nine months of the year On a per share basis, NAV amounted to €2.55 per share Q3 consolidated sales of €450.8m compared to €408.6m in Q2 Q3 group EBITDA from continuing operations of €40.8m, compared to €10.0m in Q2 Gross profit for Q3 amounted to €110.1m, compared to €73.5m in Q2
MIG’s cash at the parent company level amounted to €267.4m The Board of Directors recently announced its decision to proceed with the issuance of a Convertible Bond Loan (“CBL”) of up to €660,281,301 in two tranches with the following terms: Tranche A of the CBL will amount to up to €408,625,335 through the issuance of 408,625,335 common bonds of nominal value €1.00 each, maturity of 6 years, annual coupon of 7% and Conversion Price of €0.54 per share Tranche B of the CBL will amount to up to €251,655,966 through the issuance of 251,655,966 common bonds of nominal value €1.00 each, maturity of 7 years, annual coupon of 6.3% and Conversion Price of €0.99 per share Current shareholders will have pre-emption rights on both tranches of the CBL, as per current legislation, in the ratio of 6 bonds in total for 7 shares
Announcement of strategic agreement with Abu Dhabi Mar/Privinvest Group of companies (ADM) ADM will become a shareholder of a to be determined amount of the share capital of MIG and/or a convertible bond investor in MIG as soon as practically possible. Concurrently Mr. Iskandar Safa, Chairman of ADM, will be elected as Vice Chairman of the Board of Directors of MIG MIG will eventually become an investor of a to be determined amount of the share capital of Hellenic Shipyards S.A./Skaramangas (HSY), retaining one board seat of HSY, and will assist in the management of this company
KEY EVENTS AND HIGHLIGHTS OF 9M 2011: VIVARTIA
9M Sales: 9M EBITDA: 9M Net income after minorities:
2011 €532.5 m €26.6m €(31.3)m
2010 €560.9m €20.9m €(106.6)m
Since announcement of the acquisition of a 57.8% stake MEVGAL, which is pending completion, the company has begun the planning of its integration efforts, following approval of the transaction by the capital markets commission
Investor Relations
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Investor Release 16 November 2011
Vivartia continues to grow its leading market shares in a contracting market, with the introduction of several innovative new products including premium milk, yogurts, chilled teas, and through new marketing and advertising campaigns In September, Vivartia announced the signing of a preliminary agreement for the disposal of 90% of dairy subsidiary Vivartia Cyprus Ltd, to Alexis Charalampidis and Menelaos Siakolas, for a consideration of €42m. The remaining 10% will remain with Delta Foods S.A.
ATTICA GROUP 2011 €203.0m €0.5m €(26.5)m
2010 €221.2m €10.7m €(23.6)m
9M Sales: 9M EBITDA: 9M Net income after minorities:
Abolition of third-party charges by the Greek government, effective as of 1st June 2011, has brought about positive effects on demand and has countered some of the performance pressures On May 24th, Attica announced a new 3 year joint service agreement with ANEK Lines in its Patras – Igoumenitsa – Ancona international route and the Piraeus – Heraklion, Crete domestic route. This joint service agreement aims to further improve services offered, as well as to optimise the capacity offered in these routes, to better reflect current demand while maintaining the high quality of services offered today. We expect that going forward, these actions will have material positive effects on Attica’s results Performance for the first nine months was affected by a sharp rise in fuel prices of 26% compared to the same period in 2010 On October 18th, the Ro-Pax vessel Blue Star Delos, Daewoo Shipbuilding & Marine Engineering Co. Ltd was delivered. Blue Star Delos is the first of two vessels ordered in June 2009 and has an overall length of 145.5 meters, a speed of 26 knots and the capacity to carry 2,400 passengers and 450 private vehicles or 50 freight units and 150 private vehicles On November 2nd, shareholders approved a share capital increase of €24.4m, with priority rights to existing shareholders, at an exchange ratio of 17 new shares for every 40 old shares and with a price of €0.30 per share Shareholders also approved the decrease of the company’s share capital through the reduction of the share par value from €0.83 to €0.30 per share
HYGEIA GROUP
9M Sales: 9M EBITDA:
2011 €184.2m €1.9m
2010 €208.4m €12.6m
Investor Relations
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Investor Release 16 November 2011
9M Net income after minorities:
€(27.4)m
€(15.3)m
Parent 9M Sales: Parent 9M EBITDA: Parent 9M Comparable Net income:
€107.1m €15.8m €2.4m
€103.0m €12.5m €1.8m
Whilst group results were down for the first nine months, at parent company level EBITDA increased by 27% to €15.8m, from €12.5m the previous year In November, Hygeia completed its share capital increase, raising €64.9m, which significantly enhances the group's capital structure and allows for the financing of any future investment opportunities. As a result of the share capital increase, MIG’s stake in Hygeia has increased to 70.4% Significant efforts are currently being made towards a strategic restructuring of the maternity operations and of those in Cyprus The Leto Maternity Hospital opened its newly-renovated Delivery Suite to the public, completing its full-scale renovation Recently, Hygeia and Mitera hospitals were certified by TEMOS, the only organisation certifying medical tourism services worldwide Changes in the management team of Mitera have recently been made, in accordance with the greater group strategy of cost containment and a focus on profitability
SINGULARLOGIC 2011 €46.3m €4.2m €(2.7)m
2010 €51.0m €4.9m €(0.6)m
9M Sales: 9M EBITDA: 9M Net income after minorities:
SingularLogic has continued to develop its Enterprise Value Program (EVP), which allows large enterprises to outsource both their ICT infrastructures (software, hardware, services, telcos) and IT departments to SingularLogic. The EVP offers significant value upside going forward as it enables Singular’s customer base to implement substantial cost-cutting initiatives SingularLogic Galaxy product family revenues continued increasing at a satisfactory rate, expected to further improve in the fourth quarter and in 2012 with the addition of new products addressing key markets (such as Galaxy Commercial for small enterprises). The ICT initiative, in cooperation with Vodafone Greece continues to contribute to revenues The Public Sector remains the major source of revenue loss, with an estimated 19% drop compared to the same period last year. Private Sector revenues have also decreased but proved more resilient, strengthened with new initiatives such as ICT, Galaxy & Outsourcing Management changes have recently been put into place at many levels,
Investor Relations
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Investor Release 16 November 2011
including executive management, targeting improved performance and a return to profitability FAI rent a Jet 2011 €38.1m €6.6m €2.9m
2010 €30.8m €8.2m €3.8m
9M Sales: 9M EBITDA: 9M Net income after minorities:
FAI has now moved into its new hangar in Nuernberg. The hangar includes 2,500 m² of hangar space, 1,500 m² of workshop and storage space, and more than 2,000 m² of office space. FAI is now able to independently perform maintenance on its wide body and heavy jets such as Global Express, Falcon 900, CRJ 200 and Challenger 604, as well as create significant further revenue growth opportunities from third party customers Since February 2011, FAI has offered a new, dedicated Air Ambulance jet service, based in Dakar, Senegal – expanding on flight operations and maintenance facilities in place in Dakar since 2006 in connection with an NGO contract On August 17th, FAI announced the addition of a Learjet 40XR to its fleet, bringing the total number of Learjets to 14 and the total number of executive jets in its fleet to 20 Executive-Charter revenues in first nine months amounted to €11.83 m, reflecting an increase of 280% over the same period in 2010
Sunce Bluesun 2011 €33.1m €10.6m €4.4m
2010 €30.6m €9.1m €2.5m
9M Sales: 9M EBITDA: 9M Net income after minorities:
During the first nine months of the year, Sunce's number of guests increased 4.7% over the same period last year, whilst the average length of stay as of the end of June stood at 6.8 days, representing a 1.7% increase over 9M 2010 which led to a 8.4% year on year increase in occupancy to 78.5% Currently, management is focused on maintaining full capacity at the hotels and a possible lengthening of the official tourist season. Alternative strategies are under review, and a rebranding project is also underway The strong tourist season of the third quarter has strengthened sales, representing an increase in sales of 8% over the previous year
Investor Relations
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Investor Release 16 November 2011
OLYMPIC AIR GROUP Olympic Air 9M Sales: 9M EBITDA: 9M Net income after minorities:
2011 €189.9m €(6.5)m €(22.5)m
2010 €263.6m €(51.2)m €(52.4)m
Olympic Handling 9M Sales: 9M EBITDA: 9M Net income after minorities:
€44.0m €(6.6)m €(14.4)m
€56.1m €(7.5)m €(16.3)m
Olympic Engineering 9M Sales: 9M EBITDA: 9M Net income after minorities:
€3.2m €(3.3)m €(5.6)m
€2.7m €(5.9)m €(7.4)m
Dennis Malamatinas, the Chief Executive of MIG, has recently been appointed as Executive Chairman of Olympic Air as a sign of continued commitment to the airline and its improving performance On 27th March 2011, Olympic Air commenced its cooperation agreement with Cyprus Airways, with code-shared flights from (and to) Athens, Rhodes, Heraklion and Thessaloniki, and to (and from) Larnaka and Pafos. The agreement has since been expanded to cover most domestic and international destinations of Olympic Air as well as international flights of Cyprus Airways and a wider co-operation in the areas of ground handling and aircraft maintenance In September, Olympic Air signed a code share agreement with KLM Royal Dutch Airlines, enabling Olympic Air to increase the number of its flight offerings between Athens and Amsterdam from nine to sixteen per week and enabling KLM an increase from two to three flights daily. Furthermore, the agreement offers a further 8 destinations to KLM passengers in the Greek domestic market & 8 European destinations to Olympic Air passengers Other codesharing / strategic initiatives are currently under way with international carriers, including Delta Airlines and Etihad Airways The strategic refocusing of Olympic Air towards becoming a regional carrier, coupled with increased traffic in the summer months contributed to improved performance during the third quarter, and the Group is on track to delivering operating profitability by 2012
Investor Relations
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Investor Release 16 November 2011
Commenting on the 9M results, Dennis Malamatinas, Marfin Investment Group’s Chief Executive Officer, stated:
““With these stronger operational results in the third quarter of the year, the group’s companies have shown the first signs of improving financial performance despite the contracting market and a continuous recession in the domestic environment. Our companies continue to maintain their leading market positions, and most importantly, continue to outperform their peers during these difficult times. The Group has recently embarked in management restructurings across a number of portfolio companies for the better implementation of our strategy concentrating on cost containment and return to profitability. In addition, upon completion of the convertible bond issuance announced on the 1st of November, the Group will be positioned to solidify its market presence and capitalize on significant emerging investment opportunities. Finally, our recently announced strategic agreement with Abu Dhabi Mar/Privinvest Group of companies demonstrates the confidence in the Group’s management, adopted strategy and its prospects going forward. The new investor alongside Dubai Group as well as other core shareholders of the Group will add significant value to MIG’ s efforts to pursue investment opportunities in Greece and Cyprus and deliver long term value to all our shareholders.”
Investor Relations
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Investor Release 16 November 2011 INCOME STATEMENT (amounts in Euro million)
THE GROUP 30/09/2011
Sales Cost of sales Gross profit Administrative expenses Distribution expenses Other operating income & expenses Profit / (loss) before taxes, financing and investment activities Impairment Other financial results Financial expenses Financial income Income from dividends Share in net result of companies accounted for by the equity method Profit/(loss) before income tax Income tax Profit/(loss) after tax for the period from continuing operations Net profit/(loss) from discontinued operations Profit/(loss) for the period Attributable to: Owners of the parent company 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
30/09/2010
1,208.8
1,355.7
‐1,001.8
‐1,112.0
206.9
243.6
‐112.1
‐134.3
‐224.9
‐257.6
61.3
‐61.7
‐68.8
‐210.0
0.0
‐923.4
‐5.7
‐12.7
‐100.0
‐85.7
16.9
15.2
15.6
6.6
1.8
1.1
‐140.2
‐1,209.0
‐9.1
‐40.4
‐149.3
‐1,249.4
3.7
‐199.2
‐145.6
‐1,448.7
‐125.4
‐1,385.3
‐126.3
‐1,210.8
0.9
‐174.5
‐20.2
‐63.3
‐23.0
‐38.6
2.8
‐24.7
EBITDA from continuing operations
19.2
‐123.5
INCOME STATEMENT (amounts in Euro million)
ΤΗΕ COMPANY 30/09/2011
Income from investments in subsidiaries & AFS Portfolio Income from financial assets at fair vaue through profit or loss Impairment Other income Total operating income Fees and other expenses to third parties Wages, salaries and social security costs Depreciation Other operating expenses Total operating expenses Income from cash and cash equivalent Interest and similar expenses Profit/(loss) before tax Income tax Profit/(loss) after tax for the period
30/09/2010 18.4
7.6
‐4.5
‐6.0
0.0
‐1,133.1
0.0
0.0
14.0
‐1,131.5
‐2.5
‐2.8
‐2.6
‐2.9
‐0.5
‐0.5
‐3.7
‐3.3
‐9.3
‐9.5
13.2
11.2
‐24.4
‐22.1
‐6.6
‐1,151.9
0.0
‐22.7
‐6.6
‐1,174.6
Investor Relations
+30 210 350 4064 +44 207 054 9280 www.marfininvestmentgroup.com
Investor Release 16 November 2011 STATEMENT OF FINANCIAL POSITION (amounts in Euro million)
THE GROUP 30/09/2011
31/12/2010
Tangible & Intangible assets Goodwill Investments in associates Investment portfolio Property investments Trading & financial instruments through P&L Cash and cash equivalents Other current & non‐current assets Assets held for sale Total assets
2,488.1
2,520.9
358.0
365.9
Total shareholders equity Non‐controlling interests Total equity Long term borrowings Short term borrowings Other current & non‐current liabilities Liabilities related to Assets held for sale Total liabilities Total equity & liabilities
76.3
76.2
159.2
167.9
426.2
423.2
54.0
85.4
518.0
772.7
828.6
743.0
81.3
256.5
4,989.7
5,411.7
1,720.1
1,960.5
300.2
323.0
2,020.3
2,283.5
1,214.2
1,601.2
929.8
416.5
809.5
752.9
15.9
357.6
2,969.4
3,128.2
4,989.7
5,411.7
THE COMPANY 30/09/2011
Tangible & Intangible assets Investment in subsidiaries Investments in associates Investment portfolio Trading & financial instruments through P&L Cash and cash equivalents Other current & non‐current assets Total assets Total shareholders equity Total equity Long term borrowings Short term borrowings Other current & non‐current liabilities Total liabilities Total equity & liabilities
31/12/2010 3.3
3.8
1,828.4
1,686.2
11.6
19.2
136.7
143.7
53.5
78.8
267.4
564.6
186.2
136.3
2,487.1
2,632.7
1,960.7
2,111.7
1,960.7
2,111.7
493.7
493.7
0.0
0.0
32.7
27.2
526.4
521.0
2,487.1
2,632.7
Investor Relations
+30 210 350 4064 +44 207 054 9280 www.marfininvestmentgroup.com
Investor Release 16 November 2011
Contacts: Investor Relations:
About MIG:
+30 210 350 4064 +44 207 054 9280
Marfin Investment Group Holdings S.A. is an international investment holding company based in Greece and throughout Southeastern Europe. 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 is quoted on the Athens stock exchange and has a portfolio of leading companies in sectors across the SEE region, grouped into Food & Beverages, Healthcare, IT & Telecoms, Transportation & Shipping, Real Estate, Tourism & Leisure, Environmental, and Financial Institutions sectors. Included amongst its portfolio and subsidiary companies is Vivartia, a leading food and food retail business in the region; Attica Group, a leading passenger ferry operator; Olympic Air, Greece’s national flag carrier; the Hygeia Group of hospitals, a leading private hospital group in Greece, Cyprus and Albania; Marfin Popular Bank; SingularLogic, the leading IT operator in Greece; and Robne Kuce Beograd, the largest chain of department stores in Serbia. The company has been listed on the Athens Stock Exchange since July 2007.
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