MIG HOLDINGS S.A.
Full Year 2010 Results
- Full Year 2010 NAV stands at €2.112bn translating to a NAV per share of €2.74 after all impairments and write-downs
- Consolidated Full Year 2010 sales of €1,492m, reflecting a 13.4% growth over the previous year
- Recurring EBITDA for the year of €81.3m
- At year-end, the company maintains a sound and strong capital adequacy having a cash position of €564.6m
- Shift of strategic emphasis, focusing on share value appreciation
- Share Capital Increase of €256.7m
- Convertible Bond Loan issuance of €684.7m
- Consolidated net loss after tax and minorities before impairment, discontinued operations and extraordinary items for the year of €90.8m
- Consolidated net loss after tax and minorities including impairment, discontinued operations and extraordinary items for the year of €1,868m
For the Full Year 2010, Marfin Investment Group (MIG) announced today consolidated losses after tax and minorities before impairment, discontinued operations and extraordinary items of €90.8m while consolidated losses after tax and minorities amounted to €1,868.4m. At company level, total losses amounted to €1,637.6m. As already stated in the half-yearly results, the vast majority of MIG's losses in the current year are non-cash items as they relate to the impairments and revaluation of assets which amounted to €1,398.1 on a consolidated basis and to €1,522.8m on a company level.
Full Year consolidated Group sales amounted to €1,492.5m, reflecting a 13.4% growth over the previous year, while consolidated full year gross profit reached €365.2m. Recurring EBITDA reached €81.3m decreasing from €122.3m in 2009.
MIG's NAV stood at €2.112bn at the end of the year, or €2.74 per share. As such, MIG's current share price levels represent a remarkable 69% discount to the company's NAV despite all impairments, write-downs and extraordinary items.
It is noteworthy that since the capital raising of 2007, where NAV stood at €5.427bn, the company's NAV has evolved to its current level of €2.112bn as a result of a €1.006bn (19%) capital return to shareholders (€536m share buyback and €470m constructive dividends), operating profitability of €187m and a €2.496bn non-cash charge which relates to impairment (€1.523bn) and fair value adjustments (€973m) relating to the revaluation of all MIG's participations in its financial statements. This decline represents a 52% (net of capital return) accounting decrease of NAV which is recoverable when market conditions improve. Given this performance was recorded during 3.5 years with the worst economic conditions of Greece's modern history, management believes that its strategic approach to date has been vindicated.
At year-end, the company maintained a sound and strong capital adequacy, with a cash position of €565m. This liquidity is a result of all initiatives adopted by management focusing on cost containment, portfolio rationalization as well as prudent balance sheet management. MIG's current cash position provides a substantial war-chest to address existing opportunities as well as those expected to emerge through the end of 2011.
Throughout the economic downturn of 2008-2010 MIG adopted a defensive strategy, placing emphasis on market share as well as on preserving and strengthening the portfolio companies position in their respective markets. Especially during 2010, MIG's portfolio companies engaged in a strategy of strengthening their market shares, implementing cost-cutting initiatives, deleveraging substantially, entering into strategic agreements, proceeding with new product and service innovation, restructuring their operations, exiting non-core activities and focusing on building further brand and customer loyalty.
Today, MIG's portfolio companies demonstrate the strongest balance sheets amongst their peers, are the clear market leaders, own high quality asset bases and are ideally positioned to benefit from the expected uptick of the Greek economy and reap the benefits of the strategy followed not only in 2010 but throughout the cyclical downturn. The expected return to economic recovery of Greece in the next few quarters finds all MIG portfolio companies in the strongest position to take advantage of the benefits of a return to growth. The company's solid operational and capital base will allow it to take advantage of the expected improving cyclical and structural trends with a view to realising the true potential of its investments.
To reflect its beliefs in the future's prospects and the emerging investment opportunities, MIG's BoD decided to embark on a new strategy, placing emphasis and focusing on share value appreciation. In this light, MIG announced last week a share capital increase and convertible bond loan totaling €941.5m, of which €256.7m will be in the form of a share capital increase with pre-emption rights to existing shareholders through the issuance of one new share for each three existing shares at the price of one euro per share, and €684.7m will be in the form of a convertible bond loan issuance with pre-emption rights to existing shareholders through the issuance of two bonds for each three outstanding shares of the Company, including the shares following completion of the abovementioned share capital increase.
Commenting on the results, MIG's Chief Executive Officer Mr. Dennis Malamatinas made the following statement:
"For the past two years, we have adopted a defensive with our main focus around protecting and strengthening our portfolio companies' market leading positions in their respective sectors and markets. In addition, we embarked on a rationalization of the group's portfolio, coupled with cost containment initiatives at the company level. These efforts helped the group to maintain the strong capital position it enjoys today, resulting in a cash position of €565m.
Although there has been a reduction in the group's reported Net Asset Value, we believe that our strategy and actions have been validated - they have enabled MIG to, most importantly, maintain a strong operational base of high-quality companies, as well as bolster and maintain a sizable capital base from which we will be able to exploit opportunities arising from the expected improvement in the economic cycle. MIG's portfolio companies continue to maintain strong balance sheets, leading market shares, strong brand identities and enjoy customer loyalty - all sought-after attributes which differentiate MIG's companies from their competition. We believe that in the near future MIG will be able to realise and reap the benefit from these investments, realising their true potential.
As we enter into what appears the last phase of this economic cycle's downturn, we believe that numerous attractive and significant opportunities will come to market. From the government's announced privatisation programme to the potential disposals of non-core assets by regional and domestic financial institutions - it is our belief that there will be opportunities across many of MIG's sectors and markets of focus, which we are prepared to take advantage of.
Whilst 2011 has thus proven and will continue to be a tough year, our current business plan projections do indicate a limited enhancement in operating performance for 2011, which however, coupled with the continuously weakening position of our competitors and some improvement in the economic environment will lead to very significant performance improvement from 2012 onwards.
As such, we have decided to herald in this new era with a strategic shift towards placing more emphasis on enhancing and crystallising the value of our investments and creating significant medium-term upside in shareholder value."
Contacts:
Investor Relations: +30 210 350 4000, +44 207 054 9280
About MIG: 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.
- Consolidated Full Year 2010 sales of €1,492m, reflecting a 13.4% growth over the previous year
- Recurring EBITDA for the year of €81.3m
- At year-end, the company maintains a sound and strong capital adequacy having a cash position of €564.6m
- Shift of strategic emphasis, focusing on share value appreciation
- Share Capital Increase of €256.7m
- Convertible Bond Loan issuance of €684.7m
- Consolidated net loss after tax and minorities before impairment, discontinued operations and extraordinary items for the year of €90.8m
- Consolidated net loss after tax and minorities including impairment, discontinued operations and extraordinary items for the year of €1,868m
For the Full Year 2010, Marfin Investment Group (MIG) announced today consolidated losses after tax and minorities before impairment, discontinued operations and extraordinary items of €90.8m while consolidated losses after tax and minorities amounted to €1,868.4m. At company level, total losses amounted to €1,637.6m. As already stated in the half-yearly results, the vast majority of MIG's losses in the current year are non-cash items as they relate to the impairments and revaluation of assets which amounted to €1,398.1 on a consolidated basis and to €1,522.8m on a company level.
Full Year consolidated Group sales amounted to €1,492.5m, reflecting a 13.4% growth over the previous year, while consolidated full year gross profit reached €365.2m. Recurring EBITDA reached €81.3m decreasing from €122.3m in 2009.
MIG's NAV stood at €2.112bn at the end of the year, or €2.74 per share. As such, MIG's current share price levels represent a remarkable 69% discount to the company's NAV despite all impairments, write-downs and extraordinary items.
It is noteworthy that since the capital raising of 2007, where NAV stood at €5.427bn, the company's NAV has evolved to its current level of €2.112bn as a result of a €1.006bn (19%) capital return to shareholders (€536m share buyback and €470m constructive dividends), operating profitability of €187m and a €2.496bn non-cash charge which relates to impairment (€1.523bn) and fair value adjustments (€973m) relating to the revaluation of all MIG's participations in its financial statements. This decline represents a 52% (net of capital return) accounting decrease of NAV which is recoverable when market conditions improve. Given this performance was recorded during 3.5 years with the worst economic conditions of Greece's modern history, management believes that its strategic approach to date has been vindicated.
At year-end, the company maintained a sound and strong capital adequacy, with a cash position of €565m. This liquidity is a result of all initiatives adopted by management focusing on cost containment, portfolio rationalization as well as prudent balance sheet management. MIG's current cash position provides a substantial war-chest to address existing opportunities as well as those expected to emerge through the end of 2011.
Throughout the economic downturn of 2008-2010 MIG adopted a defensive strategy, placing emphasis on market share as well as on preserving and strengthening the portfolio companies position in their respective markets. Especially during 2010, MIG's portfolio companies engaged in a strategy of strengthening their market shares, implementing cost-cutting initiatives, deleveraging substantially, entering into strategic agreements, proceeding with new product and service innovation, restructuring their operations, exiting non-core activities and focusing on building further brand and customer loyalty.
Today, MIG's portfolio companies demonstrate the strongest balance sheets amongst their peers, are the clear market leaders, own high quality asset bases and are ideally positioned to benefit from the expected uptick of the Greek economy and reap the benefits of the strategy followed not only in 2010 but throughout the cyclical downturn. The expected return to economic recovery of Greece in the next few quarters finds all MIG portfolio companies in the strongest position to take advantage of the benefits of a return to growth. The company's solid operational and capital base will allow it to take advantage of the expected improving cyclical and structural trends with a view to realising the true potential of its investments.
To reflect its beliefs in the future's prospects and the emerging investment opportunities, MIG's BoD decided to embark on a new strategy, placing emphasis and focusing on share value appreciation. In this light, MIG announced last week a share capital increase and convertible bond loan totaling €941.5m, of which €256.7m will be in the form of a share capital increase with pre-emption rights to existing shareholders through the issuance of one new share for each three existing shares at the price of one euro per share, and €684.7m will be in the form of a convertible bond loan issuance with pre-emption rights to existing shareholders through the issuance of two bonds for each three outstanding shares of the Company, including the shares following completion of the abovementioned share capital increase.
Commenting on the results, MIG's Chief Executive Officer Mr. Dennis Malamatinas made the following statement:
"For the past two years, we have adopted a defensive with our main focus around protecting and strengthening our portfolio companies' market leading positions in their respective sectors and markets. In addition, we embarked on a rationalization of the group's portfolio, coupled with cost containment initiatives at the company level. These efforts helped the group to maintain the strong capital position it enjoys today, resulting in a cash position of €565m.
Although there has been a reduction in the group's reported Net Asset Value, we believe that our strategy and actions have been validated - they have enabled MIG to, most importantly, maintain a strong operational base of high-quality companies, as well as bolster and maintain a sizable capital base from which we will be able to exploit opportunities arising from the expected improvement in the economic cycle. MIG's portfolio companies continue to maintain strong balance sheets, leading market shares, strong brand identities and enjoy customer loyalty - all sought-after attributes which differentiate MIG's companies from their competition. We believe that in the near future MIG will be able to realise and reap the benefit from these investments, realising their true potential.
As we enter into what appears the last phase of this economic cycle's downturn, we believe that numerous attractive and significant opportunities will come to market. From the government's announced privatisation programme to the potential disposals of non-core assets by regional and domestic financial institutions - it is our belief that there will be opportunities across many of MIG's sectors and markets of focus, which we are prepared to take advantage of.
Whilst 2011 has thus proven and will continue to be a tough year, our current business plan projections do indicate a limited enhancement in operating performance for 2011, which however, coupled with the continuously weakening position of our competitors and some improvement in the economic environment will lead to very significant performance improvement from 2012 onwards.
As such, we have decided to herald in this new era with a strategic shift towards placing more emphasis on enhancing and crystallising the value of our investments and creating significant medium-term upside in shareholder value."
Contacts:
Investor Relations: +30 210 350 4000, +44 207 054 9280
About MIG: 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.