Eyrir Invest reports an after tax profit of ISK 1,504 million for the year
2008, which equals 7.5% return on equity. Equity at year end is ISK 31,392
million compared to ISK 18,133 million at year beginning. At the end of last
year and beginning of this year all bank loans were extended, next repayment
date is in May 2011.
• Equity amounts to ISK 31,392 million and equity ratio is 40.8%
• Next bank loan repayment date is in May 2011, average maturity of long term
debt is 3.5 years
• Cash and bank deposits are ISK 6,942 million
• Listed bonds due in H2 this year amount to ISK 3,567 million
• Eyrir Invest acquired NBI‘s share in London Acquisition (Stork) in November
2008 in exchange for 27.5% share in Eyrir Invest
• Eyrir Invest has no direct losses due to the collapse of the Icelandic banks
• Eyrir Invest‘s functional currency is Euro as of January 1st 2009. Total
assets at year end 2008 are EUR 452 millions and equity is EUR 184
millions
Vast majority of Eyrir Inverts' assets are in three leading industrial
companies; Marel, Ossur and Stork. Eyrir Invest has step by step, since mid
year 2006, reduced general investments in the financial markets and today Eyrir
Invest has no investments in it‘s trading book.
Arni Oddur Thordarson, CEO:
„We are satisfied with returning a slight profit in a though environment. We
have delivered good return in the past and we have the patience and strength to
weather the storm. Our companies have strong competitive position and are in
key position to capture growth when markets normalize. Already there are signs
showing that the worst is behind us and business will improve again after this
fast and deep economic downturn.
The global economic downturn has proved to be both faster and deeper than
generally was expected. Our companies have acted fast and lowered their cost
base significantly to compensate for lower revenues while maintaining market
share.
The financing of Eyrir Invest and its core holdings is principally based on
equity and long term loans with maturity up to 8 years. We are grateful for
the trust we receive from financial institutions Looking forward good growth is
expected in the industries that Eyrir Invest‘s core holdings operate in; food
processing, health care and energy services“
Eyrir Invest is a long term strategic investor
Eyrir Invest has been a shareholder in Marel Food Systems and Ossur since 2004.
Eyrir Invest is the lead investor in Marel, with close to 40% of total shares,
and Ossur´s second largest shareholder, with 20% of total outstanding shares.
Eyrir Invest uses equity method in accounting for core holdings, beginning in
mid-year 2008 and has subsequently been granted authorisation to change its
operational currency to Euros starting January 1st 2009.
Marel and Ossur are today the largest companies registered on Nasdaq OMX in
Iceland, as well they are among the largest export companies in Iceland. In
addition, based on market value, Marel and Ossur are among the 30% largest
companies that are registered on Scandinavian Stock Markets. If Marel and Ossur
holdings were booked at market prices the equity ratio of Eyrir Invest would be
calculated as 30% instead of slightly above 40%. The Icelandic equity market
has been dysfunctional since the collapse of the Icelandic banks and Eyrir
Invest‘s management view is that dual listing of the shares would better
reflect Marel‘s and Ossur‘s real value, both being leading companies in their
field.
Marel, Ossur and Stork all improved their operational profits year on year.
Emphasis has been on driving their cost base down to a sustainable lower level,
both to compensate for lower revenues in 2009 and to increase profit in the
future. Health Care and Food Industries have in the past been more resilient in
economic downturns than most other industries.
• Marel Food Systems is today the global leader in developing, manufacturing
and marketing of advanced equipment and solutions for poultry, fish and meat
processing. Pro forma turnover in 2008 was 613 million Euros and operational
profit was 51.9 million Euros (adjusted EBIT). Marel Food Systems employs
approx. 3,800 people, thereof 350 in Iceland, and the company‘s sales network
extends to 60 countries. Annually Marel Food Systems invests around 30-40
million Euros in research and development. Approximately 1% of Marel‘s revenues
derives from Iceland but close to 6% of total costs.
• Ossur is a world-wide leader in prosthetics and a top-tier player within the
bracing and support business after a number of successful acquisitions in that
field in recent years. Ossur´s revenues in 2008 were USD 350 million with an
EBITDA of 79.4 million. Ossur‘s employees are 1,600, mainly in N-America and
Europe, in Iceland there are 260 employees. Annually Ossur invests USD 25 in
research and development. Less than 1% of Ossur‘s income derives from Iceland
and about 9% of costs.
• Today, Stork operates on two main pillars; Stork Technical Services and
Stork Aerospace, which on one hand consists of services towards the energy
sector and on the other hand services towards aerospace and aviation industry.
Stork´s sales in 2008 amounted to EUR 1.8 billion with an EBITDA profit of EUR
175 million. Stork‘s main operations are in the Benelux area and the employees
are 14,000. Stork´s slogan is “Know-How” which reflects how research and
development are embedded in the operations.
Eyrir Invest and NBI (New Landsbanki), with the consent of Candover, in
November reached an agreement where Eyrir Invest undertakes NBI´s holding in
London Acquisition in exchange for new shares in Eyrir Invest. Eyrir Invests
share in Stork following the agreement is around 19% of total shares. NBI
becomes owner of 27.5% in Eyrir Invest.
"See attachment"
Outlook
The global economic downturn has both been faster and more severe than
anticipated. Although there is still uncertainty regarding the length of the
downturn, first indications are showing that the worst is already behind.
Looking forward the industries of Eyrir Invests core holdings, food processing,
healthcare and the oil & gas industry services, are expected to enjoy healthy
growth in coming years.
For further information please contact,
Arni Oddur Thordarson, CEO of Eyrir Invest
Tel: +354 525-0200
