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Bakkavör Group
2<br />
Our Mission<br />
Bakkavör’s mission is to become an<br />
international leader in the production,<br />
sale and distribution of fresh and chilled<br />
food products under its own brand<br />
names and under the private labels of<br />
retail chains.<br />
Business Objectives<br />
Bakkavör is an integrated food<br />
production company, specialising in<br />
chilled prepared food. We intend to<br />
expand substantially through organic<br />
growth and strategic acquisitions. The<br />
critical success factor for Bakkavör´s<br />
operation is commitment to excellence in<br />
our service to the major European<br />
supermarket chains which we maintain<br />
through high quality customer<br />
relationships. These relationships are<br />
maintained through close co-operation<br />
on distribution, new product<br />
development and support for their ownlabel<br />
strategies.<br />
General Strategy<br />
Our focus is on the chilled prepared food<br />
market, one of the fastest growing<br />
segments of the food industry in Europe.<br />
We aim to create an influential group of<br />
independent companies in different<br />
regional markets, maximising synergy<br />
effects in key areas and thereby creating<br />
competitive advantages.<br />
We will provide quality service to our<br />
customers in all their regional markets by<br />
offering a broad but specialised product<br />
range, continuous new product<br />
development, guaranteed quality and<br />
efficient distribution at competitive<br />
prices.
3<br />
The Group<br />
Bakkavör Group was founded in 1986 in Iceland<br />
by two brothers, Ágúst and L‡dur Gudmundsson.<br />
Today, the Company comprises a parent company<br />
and eight subsidiaries in Europe, together with an<br />
associated company in Chile. The Group operates<br />
sales and production enterprises in four European<br />
Countries, Iceland, France, Sweden and the United<br />
Kingdom, in addition to a plant in Chile. The<br />
Group also has sales and distribution companies<br />
in Germany, Finland and Poland. Each of these<br />
subsidiaries is operated as an independent<br />
company.<br />
The principal customers of the Group are the<br />
major supermarket chains of Europe. We do not<br />
normally enter into contracts to supply our<br />
customers. Our business relations are based on<br />
the combination of service, quality, innovation<br />
and value that we offer.<br />
We make nearly 350 different products. Most of<br />
them are freshly prepared every day, and will<br />
typically be comsumed within days of leaving us.<br />
Products<br />
The principal products of Bakkavör are high-quality<br />
chilled prepared foods and chilled value-added<br />
seafood. The chilled prepared foods market is a fastgrowing<br />
market in which the vast majority of the<br />
products carry the brand names of major food<br />
retailers. These retailers are our customers.<br />
Prepared Chilled Food<br />
• Ready Meals<br />
• Meal Accompaniments<br />
• Ethnic Snacks<br />
Dips, Dressings and Sauces<br />
• Dips<br />
• Fresh salad dressings<br />
• Spreads in tubes<br />
• Sauces<br />
Chilled, Value-Added Seafood<br />
• Roe and Caviar Products<br />
• Herring Products<br />
• Shellfish<br />
• Smoked Salmon
Board Agenda<br />
The Board of Directors of the Group has<br />
defined five areas which are closely<br />
monitored. These areas give an indication of<br />
the direction of the Group and the priorities<br />
of the Board of Directors.<br />
They are:<br />
4<br />
Growth<br />
The Group has been characterised by<br />
substantial growth in recent years, both<br />
through organic growth and through<br />
acqusitions, and this trend will continue.<br />
It is important to sustain productivity<br />
levels, secure access to raw materials and<br />
maintain adequate production capacity.<br />
Customers<br />
The Group focuses on a small number of<br />
key customer relationships. Our products<br />
are manufactured under the names of<br />
these customers and we work closely<br />
with them. It is therefore extremely<br />
important to maintain our services to<br />
them at the highest possible level of<br />
quality.<br />
Innovation and Product<br />
Development<br />
We attach great importance to innovation<br />
and new product development, which<br />
enables us to offer a wide range of<br />
products and a steady flow of new<br />
products for consumers who are constantly<br />
demanding improved quality and<br />
convenience.<br />
Safety<br />
Every day, vast numbers of people consume<br />
our products. The safety of our products for<br />
consumers is therefore of critical importance.<br />
Shareholder Value<br />
The principal goal of Bakkavör is to ensure<br />
good returns to shareholders. The key to<br />
attaining this goal is a clear vision and talented<br />
management.
Delivering Results in Growing Markets<br />
Chairman’s and Managing Director’s Address<br />
6
The year 2001 was a good year for the Bakkavör Group. The<br />
Company showed record profits, expansion and growth. The<br />
most important event of the year was the acquisition of the<br />
U.K. food manufacturer, Katsouris Fresh Foods Ltd. (KFF),<br />
which substantially enlarged Bakkavör.<br />
The Year’s Results<br />
The profit for the year amounted to £ 3.6 million before<br />
taxes, which represents an increase of 117% between years,<br />
and the EBITDA was £ 6.3 million. Return on equity was in<br />
line with goals, and in the operation of all subsidiaries<br />
either met or surpassed expectations. Bakkavör’s turnover<br />
was £ 41 million, and at year-end the Company employed<br />
1900 people.<br />
However, these figures give a limited picture of the operation<br />
of the Company, as the KFF acquisition did not take<br />
effect until 1 December, so that Bakkavör’s accounts include<br />
only one month’s turnover figures from KFF. If we look at<br />
the projected turnover of Bakkavör for the year 2002, it rises<br />
to £ 130 million and the projected EBITDA will be close to<br />
£ 26 million. These figures give a much better picture of the<br />
current operation and strength of Bakkavör.<br />
Fresh Food<br />
The take-over of KFF was in line with our strategy of increasing<br />
the weight of fresh foods in the company’s line of<br />
products. The two Bakkavör U.K. subsidiaries account for<br />
78% of the production value of the Company. This value<br />
derives from fresh food, such as Ready Meals, Dips and<br />
Dressings. Two years ago a strategic decision was made to<br />
increase the weight of this production line within the<br />
Company, and for this purpose the Company took over the<br />
U.K. dips and dressings manufacturer Wine & Dine, now<br />
Bakkavör Birmingham. These two acquisitions have radically<br />
changed Bakkavör’s position in the United Kingdom, and the<br />
U.K. market, the most developed in Europe for fresh, readymade<br />
meals, is now Bakkavör’s principal market.<br />
The fresh food sector has been experiencing the<br />
greatest growth in Europe and is projected to<br />
have the highest growth rate in the foreseeable<br />
future. Consumers appreciate fresh, ready-made<br />
products for their convenience, quality and<br />
diversity, not to mention the time saved in cooking.<br />
The organic growth of this part of Bakkavör’s<br />
activities was 19% over the year, which is in line<br />
with the Company’s expectations.<br />
Chilled, Value-Added Seafood<br />
Chilled seafood accounts for approximately 15% of<br />
the Company’s turnover. These products are made<br />
in our plants in Iceland, Sweden, France and Chile.<br />
Chilled seafood includes, for example, caviar and<br />
herring in jars. Apart from chilled seafood, our<br />
plants also produce dips such as tarama and<br />
spreads in tubes. These products are mostly sold<br />
in Scandinavia and Continental Europe. The<br />
Company’s principal markets for chilled seafood are<br />
Sweden and France. Sales of chilled seafood were<br />
according to plan during the year; performance in<br />
this area of the Company’s business was good and<br />
in line with projections. The organic growth of this<br />
part of the Company’s activities was 17%.<br />
7<br />
In addition to five sales and manufacturing<br />
companies, the Group has sales and distribution<br />
companies in Poland, Germany and Finland.
8<br />
Our Customers<br />
Since Bakkavör primarily manufactures<br />
under the brand names of supermarket<br />
chains, as most other companies in<br />
our line of work do, we concentrate on<br />
few, large customers. Our products carry<br />
these customers’ names, which means that<br />
our work does not simply involve serving<br />
customers, but working closely with them.<br />
It is extremely important to us for all<br />
relations with customers and all services<br />
to be of the highest achievable quality.<br />
In recent years, supermarket chains have<br />
become fewer and larger, but although<br />
this trend can entail risks for companies<br />
like Bakkavör, it can also create<br />
opportunities. We already operate in eight<br />
European countries, where we pursue a<br />
strategy of catering to local tastes and<br />
needs. This places us in an excellent<br />
position to draw on our core expertise,<br />
adaptability to local markets and close<br />
customer relationships with international<br />
supermarket chains to establish footholds<br />
in new and emerging markets. We believe<br />
that our strength in the future will lie in<br />
our ability to serve the supermarket chains<br />
in the countries where their outlets are<br />
located.<br />
Innovation and Product<br />
Development<br />
We attach great importance to product<br />
development and innovation, which is<br />
mostly conducted in close co-operation<br />
with our main customers. In a normal year,<br />
the Company develops over 200 new varieties<br />
of fresh foods, but less than a quarter<br />
of these products are launched. It is<br />
extremely important for us to be at the<br />
forefront in product development in order<br />
to serve our customers better. Consumers<br />
are expecting new products and new varieties<br />
on a regular basis. There are now 25<br />
people working on product development in<br />
the Company, and our strategy is to keep<br />
this aspect of our work localised by closely<br />
monitoring local market tastes and<br />
customer response.<br />
Quality and Food Safety<br />
In the operation of a food manufacturing<br />
company like Bakkavör, product quality<br />
and safety are of paramount importance.<br />
In order to guarantee the safety of our<br />
products, we employ stringent quality<br />
systems. The food industry imposes particularly<br />
strict quality requirements, which<br />
Bakkavör meets in every respect. It is of<br />
the utmost importance for us to be able,<br />
at all times, to offer safe, high-quality<br />
products, made from the best raw materials.<br />
Our People<br />
The good performance of Bakkavör, and<br />
its substantial growth in recent years, is<br />
largely owed to the excellence of our<br />
employees and on behalf of the Board of<br />
Directors we would like to thank them<br />
for their important contribution to the<br />
Company’s operations. There are now<br />
seven members of the Board of Directors<br />
of Bakkavör, as two new seats were added<br />
during the year. The Board of Directors<br />
was joined by Antonios Yerolemou,<br />
Managing Director of KFF, and Panikos<br />
Katsouris, Financial Director of KFF. They<br />
were among the founders of KFF two<br />
decades ago, and played a key role in<br />
the development and success of KFF. It<br />
gives us great pleasure to welcome such<br />
qualified and experienced men to the Board<br />
of Directors, and the Group will<br />
benefit greatly from their participation.<br />
Dividends<br />
The Board of Directors has decided not<br />
to recommend payment of any dividends<br />
in 2001, due to the recent acquisition of<br />
KFF. Last year, Bakkavör paid a dividend<br />
of ISK 0.2 per share and the general<br />
policy of the Company is to pay<br />
dividends to shareholders.<br />
Shareholders<br />
The principal objective of the operation<br />
of Bakkavör is to maximise shareholder<br />
value. We have over four thousand<br />
shareholders. The return on shares for<br />
the year 2001, taking account of<br />
dividends, came to 37.6%. The price of<br />
the Company’s stock rose 33.9% over<br />
the year, which is an excellent result<br />
considering the fact that the general<br />
stock price index fell 11.3% during the<br />
same period. The stocks rose steeply<br />
following the announcement of the<br />
acquisition of KFF. We are pleased with<br />
these good results, as they reflect the<br />
principal objective of the Company to<br />
give shareholders a good return on their<br />
investment.<br />
The Company launched two public offerings<br />
during the year. The first offering,<br />
amounting to £ 6.6 million, had the<br />
result that some of the main institutional<br />
and professional investors in Iceland<br />
placed their trust in the Company and<br />
joined us as shareholders. In the second<br />
offering, amounting to £ 24.2 million,<br />
Bakkavör’s shareholders were joined by<br />
the former owners of KFF, who now own<br />
19% of the Company’s shares. A total of<br />
44% of the shares in the Company are<br />
now held by directors and key<br />
employees, including the 29% held by<br />
the founding brothers of Bakkavör. About<br />
27% of the Company’s stock is held by<br />
investors outside Iceland, mostly as a<br />
result of the offering in connection with<br />
the acquisition of KFF.<br />
Following the acquisition of KFF, the<br />
Company underwent refinancing with the<br />
assistance of three banks, the Halifax<br />
Bank of Scotland, the Royal Bank of<br />
Scotland and HSBC. The loans taken to<br />
finance the acquisition have a term of<br />
seven years, and, in addition, the<br />
Company now has access to a revolving<br />
credit facility of £ 10 million.<br />
We are now in the process of exploring<br />
the potential advantages of listing the<br />
Company on a stock exchange outside<br />
Iceland. We will report on this in further<br />
detail as the decision process moves<br />
forward.
Prospects<br />
Bakkavör’s growth in recent years has been<br />
rapid, and we believe that this growth will continue<br />
as the market for the Company’s products<br />
is steadily growing. As the Company starts to<br />
outgrow its current production capacity, we have<br />
invested in a new plant on the Company’s operating<br />
location in the London area with a floor<br />
space of 60,000 square feet. The plant, which<br />
will increase the Company’s production capability<br />
in London by 30-40%, will come next autumn,<br />
generating 300 new jobs. A total investment of<br />
£ 12.8 million is planned for the current operating<br />
year.<br />
9<br />
Ahead is a future of continued growth in rapidly<br />
growing markets. As before, our long-term goals<br />
are clear. We intend to grow at an average annual<br />
rate of 20-30% without sacrificing profits. We<br />
will work on enlarging the Company at the same<br />
time that we work on further co-ordination of<br />
the operations of KFF with other Bakkavör subsidiaries.<br />
This year has begun well, and operations are in<br />
line with our expectations. The Company has<br />
never been better prepared for future growth<br />
than it is right now.<br />
Ágúst Gudmundsson & L‡dur Gudmundsson
Market Report<br />
10<br />
The purpose of this section is to describe<br />
briefly the markets in which Bakkavör<br />
operates and their structure. Also, the section<br />
will explore the substantial growth of these<br />
markets and look at some of the drivers of<br />
growth in this sector.<br />
Regional Segmentation<br />
General Market<br />
Description<br />
The chilled prepared food market has a strong<br />
competitive position in the European retail<br />
food market, which reflects the increasing<br />
demand for convenience, the drive to mass<br />
merchandising and a new pattern of social<br />
trends, due to changing society, the evolution<br />
towards a larger number of small households<br />
and the growing participation by women in<br />
the workforce. The increasing demand for<br />
ready-prepared, portion-controlled, easy-toserve<br />
convenience foods, particularly chilled<br />
prepared foods, is, at least in part, driven by<br />
the diminishing availability of time to spend<br />
preparing and cooking food.<br />
U.K. 38%<br />
France 24%<br />
Others 13%<br />
Spain 3%<br />
Netherlands 4%<br />
Germany 18%<br />
Over 90% of Bakkavör’s products are sold on<br />
the European chilled prepared foods market.<br />
The total market in Europe may not easily be<br />
quantified, owing to the undeveloped nature<br />
of some markets. The U.K. chilled food market<br />
is a good benchmark as it is well developed<br />
and its description illustrates what many<br />
analysts expect to be the future segmentation<br />
of the European food market.
The bold sectors in the chart for chilled prepared food are<br />
sectors in which Bakkavör is delivering products today.<br />
Despite the difficulty of quantifying the total market in<br />
Europe, the world-wide food market analyst, Leatherhead<br />
Food RA, has estimated that the Western European market<br />
for chilled prepared foods had a volume of around 3<br />
million tonnes in 2000. U.K., France and Germany are by<br />
far the largest regional markets in Europe. The chart to<br />
the left shows the share of each country in the total<br />
volume of 3 million tonnes.<br />
Retail Food Market<br />
2000<br />
Frozen 11%<br />
Fresh/Chilled 45%<br />
Ambient 30%<br />
The European market was valued at over EUR 10.6 billion<br />
(excluding prepared sandwiches) in 2000, having grown<br />
by 9.8% from EUR 9.7 billion in 1999. The market growth<br />
is projected at just under 15% p.a. over the next 3 years<br />
and the value should reach EUR 16.0 billion by 2003.<br />
Fresh/Chilled Foods<br />
2000<br />
11<br />
Chilled Prepared 17%<br />
Meat 23%<br />
Fish 3%<br />
Fresh Bread 7%<br />
Dairy 23%<br />
Fresh Produce 27%<br />
Chilled Prepared Food<br />
2000<br />
Ready Meals & Meal Accompaniments 17%<br />
Value-added Poultry & Sliced Meats 17%<br />
Value Added Seafood 5%<br />
Fresh Sauce 1%<br />
Dips 1%<br />
Other 9%<br />
Sandwiches<br />
(multiple retailers & stores) 16%<br />
Cold Eating Desserts, Cake & Breads 8%<br />
Prepared Salads 11%<br />
Quiche, Flan & Pies 15%<br />
Source: TNS, The U.K. Chilled Food Association.
12<br />
Market Trends<br />
A number of market reports indicate that the<br />
requirement for convenience has boosted<br />
demand for pre-packed and prepared products,<br />
with these foods increasingly chosen over their<br />
delicatessen counterparts. In comparison with<br />
ambient and frozen food, chilled prepared<br />
foods have the advantage of being fresher,<br />
better and quicker to prepare and therefore<br />
more convenient. Chilled prepared food also<br />
benefits from stronger retail support.<br />
The overall European chilled prepared foods<br />
industry can be described as very fragmented,<br />
with a number of different manufacturers<br />
supplying the markets in individual countries,<br />
ranging from multinationals to regional and<br />
national companies. Branding remains strong in<br />
the Continental European market, unlike the U.K.<br />
market, where the market is dominated by<br />
retailer own-labels and very few branded<br />
products.<br />
Some of these trends have yet to make a<br />
significant impact on countries in Continental<br />
Europe and the Nordic Region. However,<br />
market analysts, including Leatherhead Food<br />
RA, believe that habits are beginning to change<br />
in these regions, with convenience foods such<br />
as ready meals now gaining wider acceptance,<br />
especially among the younger generation,<br />
following trends similar to those already<br />
evident in the U.K. and some other northern<br />
European countries, such as France.<br />
Many chilled food products have been developed<br />
in the wake of maturity and stagnation in the<br />
frozen, dried and ambient food sectors. Most of<br />
the chilled prepared food products supplied in<br />
the U.K. are premium lines, featuring high-quality<br />
and luxury ingredients. The range of flavours and<br />
fillings is increasing constantly, with ethnic,<br />
American and Continental styles being<br />
particularly popular. This trend is mainly due to<br />
relatively affluent and more adventurous<br />
consumers demanding a greater variety.<br />
In the U.K., chilled prepared food producers<br />
have also sought diversification into the snack<br />
food and lunch box markets, as consumers<br />
demand more convenience food for<br />
consumption on the move. A similar trend is<br />
emerging in other Continental European<br />
markets, albeit at a slower pace.
Bakkavör sees good potential for growth in Europe,<br />
but actual growth rates are likely to vary widely by<br />
country and product category. In the more<br />
developed markets, such as the U.K. and France,<br />
there is still good potential for growth, especially in<br />
new, innovative products and in the niche market<br />
segments. Nevertheless, despite continuing growth,<br />
chilled prepared food is still in its infancy in some<br />
markets. In southern Europe, where formal family<br />
eating habits remain strong, chilled prepared foods<br />
manufacturers are struggling to gain recognition and<br />
acceptance. However, as convenience foods in<br />
general and chilled foods in particular become<br />
increasingly accepted, the market is likely to follow<br />
similar trends as in the U.K. and France, showing<br />
higher growth rates, but from a comparatively small<br />
base. Even some countries with food consumption<br />
habits similar to those of France and the U.K., like<br />
Sweden, do not seem to have developed a market<br />
for chilled food yet. The Swedish ready meals<br />
market, for example, was estimated at approximately<br />
EUR 556 million in 2000, with chilled products<br />
accounting for only about 10% of that figure, about<br />
EUR 55.6 million. In comparison, about half of the<br />
U.K. ready meals market, totalling about EUR 2.8<br />
billion in 2000, is chilled foods.<br />
13<br />
Growth Categories<br />
Over 8% per year<br />
Over 4%<br />
Under 4%<br />
Cheese Snacks<br />
Sauces<br />
Ready Meals<br />
Soup<br />
Pasta<br />
Sandwiches (in retailers)<br />
Dips and Dressings<br />
Meal Accompaniments<br />
Ethnic Snacks<br />
Non-diary desserts<br />
Quiches<br />
Dressed salads<br />
Dairy salads<br />
Pre-packed pizzas<br />
Pies, pasties
14<br />
Retail Market<br />
Supermarkets have been dominant players in<br />
many segments of the chilled prepared food<br />
market in the U.K., and almost exclusive<br />
players in the case of Bakkavör products.<br />
The industry structure and trends are<br />
therefore of great importance to the<br />
Company. The European retail market is<br />
characterised by ever fewer and larger<br />
chains, trend which is likely to continue. At<br />
the same time the retail chains are becoming<br />
increasingly international. Concentration in<br />
the industry is justified by the need to<br />
develop economies of scale in purchasing<br />
and other operations, a decisive factor in<br />
future competitiveness.<br />
The main reason for this consolidation of<br />
food retail chains is that further growth is<br />
limited in their local markets. This may be<br />
because of tough competition and/or<br />
because planning regulations prevent retail<br />
chains from increasing their number of<br />
outlets. The latter applies, for instance, in<br />
most countries in Western Europe. Size is<br />
becoming increasingly important in<br />
purchasing, and in order to expand,<br />
supermarket chains have to look across<br />
borders. Consolidation in the industry also<br />
calls for a change in the way purchasing is<br />
organised, and most market participants<br />
have set up purchasing entities, either in cooperation<br />
with other retail chains or on their<br />
own. This has led to new supplier business<br />
models and strategies. To be competitive,<br />
the suppliers must offer new products,<br />
competitive prices, reliable service and<br />
constant quality.<br />
Bakkavör’s Addressable<br />
Market<br />
Bakkavör divides its market into three<br />
regional markets: the U.K., the Nordic Region<br />
(Sweden, Finland, Norway, Denmark and<br />
Iceland) and Continental Europe. The<br />
Company generates over 99% of all its sales<br />
in these three regional markets. Sales<br />
outside these three markets are marginal and<br />
include North America and Oceania.<br />
The largest proportion of Bakkavör’s sales<br />
derives from the U.K. market, with<br />
approximately 78% of sales. Today, Bakkavör<br />
mainly serves two product segments in the<br />
U.K.: first, fresh dips, dressings and sauces,<br />
and second, ready meals, ethnic snacks, and<br />
meal accompaniments. In the Nordic Region,<br />
generating approximately 13% of sales, the<br />
Company has mainly focused its efforts on<br />
the chilled value-added seafood and chilled<br />
dips. 8% of sales are generated in<br />
Continental Europe, where the Company has<br />
been supplying products in several marginal<br />
chilled value-added seafood and chilled dips<br />
segments.<br />
Sales by Region<br />
UK 78%<br />
Others 1%<br />
Nordic Religion 13%<br />
Continental Europe 8%
15<br />
Competitive Position of<br />
Chilled Prepared Foods<br />
In comparison with ambient and frozen food,<br />
chilled prepared food has the advantage of<br />
being fresher, of higher quality and quicker<br />
to prepare, therefore more convenient. For<br />
this reason, owing to strong retailer support,<br />
chilled dips and ready meals have outgrown<br />
their ambient and frozen rivals significantly.<br />
From 1994 to 1999, chilled-dip sales<br />
increased by 16.8% annually and ambient<br />
dips sales by 9.2%. From 1995 to 2000<br />
chilled ready meals sales increased by 10.7%<br />
annually, while frozen meals sales increased<br />
by 1.4%.<br />
Market Drivers<br />
Chilled prepared food is convenience food<br />
and, as such, competes with other<br />
convenience food, such as restaurant food<br />
and frozen foods. Increased purchasing<br />
power and greater convenience should<br />
benefit the restaurant alternative, but the<br />
convenience of eating at home and the<br />
inconvenience of having to bring food home<br />
before it gets cold is benefiting chilled<br />
convenience food over takeaway food<br />
products. In the period from 1995 to 1999,<br />
the eating-out market showed a compound<br />
annual growth rate of 4.7%, while chilled<br />
ready meals showed a compound annual<br />
growth rate of 10.9%, according to Mintel.<br />
Chilled and frozen ready<br />
meals sales<br />
Ambient and chilled<br />
dips sales<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
1995 1996 1997<br />
1998<br />
1999<br />
2000<br />
Chilled<br />
Frozen<br />
Source: TNS, The U.K. Chilled Food Association.
Progress Report<br />
16 Bakkavör’s profits before taxes for the<br />
year 2001 amounted to £ 3.6 million,<br />
which represents an increase of 117% in<br />
profits from 2000, when earnings before<br />
taxes came to £ 1.7 million. Operating<br />
revenues increased by 82% between<br />
years, from £ 22.5 million to £ 41.0 million.<br />
Earnings before depreciation and financial<br />
activities (EBITDA) amounted to £<br />
6.3 million, as compared to £ 3.5 million<br />
in 2000. The increase between years was<br />
80%, the best operating result returned<br />
by the Company since its foundation.<br />
The impact of Bakkavör’s acquisition of<br />
the U.K. food production company<br />
Katsouris Fresh Foods Ltd. (KFF) is now<br />
felt for the first time in the Group’s<br />
accounts, although since the acquisition<br />
only took effect on 1 December, only a<br />
single month is represented in Bakkavör’s<br />
consolidated financial statement.<br />
Bakkavör’s entire product line can be<br />
divided into two principal categories. On<br />
the one hand, we produce fresh prepared<br />
convenience foods (ready meals, meal<br />
accompaniments, ethnic snacks, dips,<br />
salad dressings, and sauces) in two U.K.<br />
subsidiaries, and, on the other hand, we<br />
produce chilled value-added seafood and<br />
dips (marinated herring, roe and caviar<br />
products, smoked salmon, spreads and<br />
shellfish) in the Company’s subsidiaries<br />
in Iceland, Sweden, France and an<br />
associated company in Chile. In addition,<br />
the Group has sales and logistics subsidiaries<br />
in Finland, Germany and Poland.<br />
The operation of all Bakkavör subsidiaries<br />
either met or surpassed projections<br />
in 2001. The greatest proportional increase<br />
in sales was in Iceland, at almost<br />
93%. Bakkavör Sweden‘s turnover increased<br />
by 16%, Bakkavör France’s by<br />
almost 12%, Bakkavör Birmingham’s by<br />
over 25%, and Bakkavör Poland’s by<br />
10%. KFF’s turnover increased by over<br />
19% from December 2000 to December<br />
2001. These increases in the turnover of<br />
the subsidiaries are calculated in the currencies<br />
of their respective countries of<br />
operation.<br />
The most important event of the year<br />
2001 for Bakkavör was the acquisition of<br />
KFF, which completely transformed the<br />
Company’s scope of activities. Bakkavör<br />
now ranks among the largest companies<br />
on the Iceland Stock Exchange.
United Kingdom<br />
The acquisition of KFF was in line with<br />
our strategy of increasing the share of<br />
fresh prepared convenience foods in<br />
Bakkavör’s product line. The acquisition<br />
has completely changed Bakkavör’s<br />
market position in the United Kingdom,<br />
which now represents the Company’s<br />
principal market area, with the Bakkavör<br />
subsidiaries in the United Kingdom, KFF<br />
and Bakkavör Birmingham, accounting for<br />
78% of the Company’s production value.<br />
17<br />
The Company’s U.K. fresh prepared convenience<br />
foods production falls into four<br />
sub-categories: ready meals, dips,<br />
dressings and sauces, ethnic snacks, and<br />
meal accompaniment. In 2001, we outperformed<br />
the market in all our subcategories.<br />
Our growth in ready meals<br />
was 30%, in dips, dressings, and sauces,<br />
15%, in ethnic snacks, 9.5%, and in meal<br />
accompaniments, 9.6%.<br />
The market analysts Burlington Consultants<br />
have projected the compound<br />
growth of the market segments in which<br />
Bakkavör operates for the years 2002-<br />
2004. They predict growth in the sales of<br />
ready meals at 6-12% annually, dips,<br />
dressings and sauces at 12-15%, ethnic<br />
snacks at 10-14% and, finally, meal<br />
accompaniments at 15-25%.
The Nordic Region<br />
2001 was a good year for Bakkavör in the Nordic<br />
countries. Bakkavör Iceland almost doubled its sales<br />
and the increase in Bakkavör Sweden’s sales was just<br />
over 16%. These two companies account for most of the<br />
Company’s production of chilled value-added seafood,<br />
and the Nordic Region now accounts for 13% of our<br />
total sales following the acquisition of KFF.<br />
18<br />
Bakkavör Iceland’s main product categories are cod roe,<br />
lumpfish roe and capelin roe, in addition to herring. The<br />
Icelandic plant processes a substantial quantity of raw<br />
material for export and further processing in the<br />
Company’s plants in Sweden and France. Bakkavör<br />
Iceland has also become one of the major buyers of<br />
herring in Iceland, with thousands of tons bought and<br />
processed for shipment to Bakkavör Sweden where<br />
further processing takes place.<br />
Bakkavör Sweden maintained its position as Sweden’s<br />
second largest manufacturer of chilled value-added<br />
seafood. The principal products of Bakkavör Sweden are<br />
marinated herring, spreads in tubes and roe-products.<br />
All of the main product categories showed a healthy<br />
growth in the year.<br />
In the course of the year, a subsidiary was established<br />
in Finland, Bakkavör Finland, which will be responsible<br />
for distribution and logistics relating to Bakkavör’s products<br />
in Finland. Bakkavör has been selling its products<br />
in Finland for years, but sales and marketing were previously<br />
handled mostly by Finnish agents.
Continental Europe<br />
As before, continental Europe remains Bakkavör’s<br />
smallest market area, accounting for approximately<br />
8% of the Company’s revenues following the<br />
acquisition of KFF. Bakkavör operates three subsidiaries<br />
in continental Europe: Bakkavör France,<br />
Bakkavör Polska and Bakkavör Germany, with<br />
Bakkavör France as the largest of the three.<br />
Bakkavör France’s performance was in line with<br />
forecasts. The company’s sales value increased by<br />
12% between years. The principal products of the<br />
Company are roe-products, tarama, shellfish and<br />
smoked salmon. In the course of the year, preparations<br />
were begun for enlargement of the Company’s plant,<br />
which is scheduled for 2002. Bakkavör France’s subsidiary,<br />
Bakkavör Chile, owns a 42% interest in Pesquera<br />
Isla Del Rey (PIDR), which also had a successful year.<br />
PIDR owns four fishing vessels and operates a production<br />
plant in Chile. Its principal products are smoked<br />
scallops, king crab and salmon, which is processed for<br />
consumer packaging in the Bakkavör plant in France.<br />
Bakkavör Poland is responsible for sales and<br />
logistics of Bakkavör’s products in Poland. The<br />
company increased its sales value by 10% and<br />
continued to strengthen its relations with<br />
international supermarket chains operating in<br />
Poland. The company primarily sells products<br />
from Bakkavör Iceland and Bakkavör Sweden.<br />
Bakkavör Germany, established in 2000,<br />
made its first sales contracts with German<br />
supermarkets last year. There is much at<br />
stake in the marketing of Bakkavör’s products<br />
in Germany, as the German market for<br />
chilled value-added seafood is significant in<br />
both size and value.<br />
19
Board of Directors<br />
20<br />
BRYNJÓLFUR BJARNASON (55)<br />
Brynjolfur is Vice-Chairman of the<br />
Board. He has been Managing<br />
Director of Grandi, one of Iceland's<br />
largest fishing companies, since<br />
1985. Brynjólfur has a B.Sc. degree<br />
in business studies and an MBA.<br />
Brynjólfur took a seat on the<br />
board of Bakkavör in 1995. He has<br />
been a board member of various<br />
companies in Iceland, Chile,<br />
Mexico, U.S.A and France.<br />
ANTONIOS YEROLEMOU (59)<br />
Antonios is Managing Director<br />
of KFF. He was one of the<br />
founders of Katsouris Fresh<br />
Foods Ltd. and has been<br />
Managing Director since the<br />
beginning. He took a seat on<br />
the board of Bakkavör in the<br />
year 2001. Antonios came to<br />
England from Cyprus, where<br />
he was born, in 1960.<br />
L†DUR GUDMUNDSSON (34)<br />
L‡dur is the Managing<br />
Director of Bakkavör. He<br />
founded Bakkavör with his<br />
brother, Ágúst, at the age of<br />
19 and has devoted his<br />
energy to the company since<br />
then. Together with Ágúst,<br />
L‡dur has successfully<br />
managed the Group’s growth<br />
from its inception.
21<br />
PANIKOS KATSOURIS (51)<br />
Panikos is Finance Director of<br />
KFF. After graduating in<br />
Economics in 1974, he joined<br />
the family business, Katsouris<br />
Brothers Ltd. Panikos was one<br />
of the founders of Katsouris<br />
Fresh Foods Ltd. in 1982 and<br />
has served the company as<br />
Finance Director from the<br />
beginning. He took a seat on<br />
the board of Bakkavör in<br />
2001. Panikos is also<br />
Managing Director of Katsouris<br />
Brothers Ltd.<br />
HREINN JAKOBSSON (40)<br />
Hreinn has been Managing<br />
Director of Sk‡rr hf., one of<br />
Iceland's largest IT<br />
companies, since 1997.<br />
Hreinn has a B.Sc. degree in<br />
business studies. He took a<br />
seat on the board of<br />
Bakkavör in the year 2000.<br />
He has been a board member<br />
of various companies,<br />
including companies in<br />
information technology and<br />
other industries.<br />
ÁGÚST GUDMUNDSSON (37)<br />
Ágúst is Chairman of the<br />
Board. He founded Bakkavör,<br />
with his brother, L‡dur, at the<br />
age of 22. Since then, he has<br />
dedicated himself to the<br />
company and is the acting<br />
Chairman of the Board of<br />
Bakkavör Group. In the 15<br />
years that Bakkavör has been<br />
in existence, Ágúst, has<br />
played a key role in the rapid<br />
but secure growth of the<br />
Company.<br />
ÁSGEIR THORODDSEN (59)<br />
Ásgeir is a lawyer and has<br />
been a partner in Reykjavík<br />
Law Firm since 1977. Ásgeir<br />
took a seat on the board of<br />
Bakkavör in the year 2000.<br />
He has been a board member<br />
of various companies and is<br />
currently Chairman of the<br />
Icelandic Bar Association.
Innovation and<br />
Product Development<br />
22<br />
We attach great importance to innovation and<br />
product development, which enables us to offer<br />
a wide range of products and a steady flow of<br />
new products for consumers who are constantly<br />
demanding improved quality and convenience.<br />
We have adopted the strategy of conducting<br />
new product development within each subsidiary.<br />
Each subsidiary has its own new product<br />
development strategy, designed in the context<br />
of its own regional market. A total of 25<br />
employees are currently engaged in new product<br />
development at Bakkavör.<br />
More than 200 new products are developed in our<br />
development kitchens each year. These products are<br />
often prepared in response to an approach from a<br />
supermarket customer, although many products are<br />
tested on the Company’s own initiative. Frequent visits<br />
from supermarket chain representatives are scheduled to<br />
taste new products and decide which ones should be<br />
taken forward into full production and supply. Historically,<br />
approximately 30-40 new products have passed this stage<br />
each year and moved forward. The time from conception<br />
to launch of a new product varies between the companies<br />
in the Group, but in the U.K., Bakkavör’s largest market,<br />
the entire process normally takes 3-4 months.
Shareholders<br />
A total of 44% of the shares in Bakkavör are now<br />
held by directors and key employees, including the<br />
29% held by the two founders of Bakkavör, Ágúst<br />
and L‡dur Gudmundsson. About 27% of the<br />
Company’s stock is held by investors outside Iceland,<br />
mostly as a result of the offering in connection with<br />
the acquisition of KFF. Below is a list of the 20<br />
largest shareholders as at 22 February, 2002.<br />
Others 20%<br />
Mutual funds 10%<br />
Investment banks 8%<br />
Pension funds 18%<br />
Managers 44%<br />
23<br />
Princpal Shareholders<br />
Name No. of Shares %<br />
1 Bakkabræ›ur S.a.r.l. 434.424.954 28,66%<br />
2 Bankastræti 7 Pension Funds 75.858.824 5,00%<br />
3 Antonios Prodromou Yerolemou 74.534.353 4,92%<br />
4 Kaupthing Luxembourg S.A. 66.084.038 4,36%<br />
5 Eleni Pishiris 52.336.471 3,45%<br />
6 Panikos Joannou Katsouris 52.336.471 3,45%<br />
7 Stella Andreou 52.336.470 3,45%<br />
8 Demos Habeshis 52.336.470 3,45%<br />
9 Íslandsbanki-FBA hf. 38.222.626 2,52%<br />
10 Mills DA 37.956.868 2,50%<br />
11 Commerce Pension Fund 35.705.882 2,36%<br />
12 Kaupthing Bank hf. 29.895.785 1,97%<br />
13 Frams‡n Pension Fund 29.586.146 1,95%<br />
14 Seamen's Pension Fund 28.884.779 1,91%<br />
15 Landssjó›ur hf. Investment Fund 23.997.270 1,58%<br />
16 Landsbanki Íslands hf. 23.109.069 1,52%<br />
17 Au›lind hf. Equity Fund 20.086.620 1,33%<br />
18 Austurland Pension Fund 15.668.263 1,03%<br />
19 VVÍB hf, Investment Fund 6 14.965.343 0,99%<br />
20 Straumur Investment hf. 14.487.152 0,96%<br />
4345 other shareholders 343.016.148 22,63%<br />
Total 1.515.830.002 100,00%
Product Quality<br />
All of Bakkavör’s production facilities have<br />
received quality standard certifications, in most<br />
cases ISO certification or compliance with the<br />
British Retail Consortium Standards, in order to<br />
audit production. The Company complies with<br />
the technical and regulatory food production<br />
standards in each of the countries in which it<br />
operates. It is of the utmost importance for us<br />
to be able, at all times, to offer safe, highquality<br />
products, made from the best raw<br />
materials.<br />
Our People<br />
Motivated and committed management<br />
represents Bakkavör’s strongest asset, and<br />
these employees will form the foundation for<br />
the Company’s further development. With<br />
the significant expansion process that<br />
Bakkavör has gone through in the last<br />
couple of years, it has been of strategic<br />
importance that management and owners<br />
of acquired companies have maintained their<br />
ties with the Company through<br />
employment contracts and bonus schemes.<br />
25<br />
Number of Employees<br />
2000<br />
1800<br />
1600<br />
1400<br />
1200<br />
1000<br />
800<br />
600<br />
400<br />
200<br />
0<br />
1998<br />
1999<br />
2000<br />
2001
Corporate Information<br />
26 Head Office:<br />
Bakkavör Group hf.<br />
Hamraborg 10<br />
200 Kópavogur<br />
Iceland<br />
Copenhagen Office:<br />
Bakkavör Group hf.<br />
Linnésgade 14<br />
1361 Köbenhavn K<br />
Denmark<br />
Principal bankers:<br />
Halifax Bank of Scotland<br />
HSBC<br />
The Royal Bank of Scotland<br />
Investment bankers:<br />
Kaupthing Bank<br />
Ármúli 13<br />
108 Reykjavík<br />
Iceland<br />
Auditor:<br />
Deloitte & Touche hf.<br />
Stórhöfdi 23<br />
110 Reykjavík<br />
Iceland<br />
General Annual Meeting:<br />
8 March 2002<br />
Annual Report:<br />
www.bakkavor.com
Bakkavör Group hf.<br />
Financial Highlights & Review
Bakkavör Group's Progress<br />
Profit and Loss Account 2001 2000 Change %<br />
Operating revenues 41,036,093 22,496,462 82.41%<br />
Operating expenses 34,750,436 18,996,086 82.93%<br />
EBITDA 6,285,657 3,500,375 79.57%<br />
28<br />
Depreciation and amortisation 2,024,105 1,089,257 85.82%<br />
Financial items 684,091 761,677 -10.19%<br />
Net income from regular operating activities 3,577,460 1,649,442 116.89%<br />
Taxes 1,016,590 494,660 105.51%<br />
Net Profit 2,560,870 1,154,782 121.76%<br />
Working capital from operating activities 4,140,485 2,515,936 64.57%<br />
Balance Sheet<br />
Fixed assets 124,139,411 17,147,166 623.96%<br />
Current assets 36,207,536 18,360,606 97.20%<br />
Total assets 160,346,947 35,507,772 351.58%<br />
Equity 46,974,823 8,419,576 457.92%<br />
Subordinated convertible loan 15,944,450<br />
Tax liability 720,786 522,412 37.97%<br />
Long-term Liabilities 71,031,704 9,855,282 620.75%<br />
Short-term liabilities 25,675,183 16,710,502 53.65%<br />
Liabilities 113,372,124 27,088,196 318.53%<br />
Total liabilities and Equity 160,346,947 35,507,772 351.58%<br />
Key ratios<br />
Current ratio 1.41 1.10<br />
Equity ratio 29.30% 23.71%<br />
Equity ratio incl. subordinated bond 39.24%<br />
Figures in GBP
Financial Highlights<br />
Bakkavör’s profits before taxes amounted to £ 3.6 million, an<br />
increase of 117% in profits between years.<br />
The ratio of EBITDA to operating income was 15.3%.<br />
The operating income of the Company increased by 82% between years.<br />
Equity rose from £ 8.4 million to £ 62.9 million, including a<br />
convertible subordinated bond in the amount of £ 15.9 million.<br />
29<br />
The Bakkavör’s plans for 2002 assume a turnover of £ 130 million<br />
and earnings before financial items and depreciation (EBITDA) of<br />
£ 26 million. Earnings after taxes are projected at £ 11 million.<br />
Turnover EBITDA EBITDA% Net Profit<br />
Million GBP<br />
Million GBP<br />
Million GBP<br />
Million GBP<br />
140<br />
30<br />
25<br />
15<br />
120<br />
25<br />
20<br />
100<br />
20<br />
10<br />
80<br />
15<br />
15<br />
60<br />
10<br />
10<br />
5<br />
40<br />
20<br />
5<br />
5<br />
0<br />
1999 2000 2001<br />
0<br />
0<br />
0<br />
2002(F) 1999 2000 2001 2002(F) 1999 2000 2001 2002 (F) 1999 2000 2001 2002 (F)
Financial Review<br />
30<br />
Summary<br />
This section summarises our financial policies and<br />
practices. The Chairman’s and Managing Directors<br />
statement and the Operating Review outline our overall<br />
business performance.<br />
Earnings before interest, tax, depreciation and<br />
amortization (EBITDA) amounted to £6.3 million, as<br />
compared to £3.5 million in 2000. This represents an<br />
increase of 80% between years. The ratio of EBITDA to<br />
operating income was 15.3%, which is similar to last<br />
year when the ratio was 15.5%. Our earnings before<br />
financial items (EBIT) increased by 77%, from £2.4<br />
million to £4.3 million. Financial costs amounted to £0.7<br />
million over the year. Taxes for the year came to £1.0<br />
million, as compared to £0.5 million in the preceding<br />
year, bringing the bottom line of the profit and loss<br />
account to £2.6 million after taxes, as compared to £1.2<br />
million in the preceding year, an increase of 122%. With<br />
a strong cash inflow from operating activities and<br />
increased committed banking facilities, Bakkavör is in an<br />
good position to finance its future investment plans and<br />
take advantage of opportunities that become available.
Cash flow and<br />
capital investment<br />
Net debt and funding<br />
The group has consolidated and is<br />
Earnings per share<br />
and dividend<br />
31<br />
Cash flow for the year was strongly<br />
looking to decrease debt. Net debt at<br />
Earnings per share stood at 50.3%<br />
positive and the group met all of its<br />
the year-end stood at £60.4 million.<br />
for the year. Due to the recent<br />
announced goals, in line with market<br />
Bakkavör has secured a £10 million<br />
acquisition of KFF, no dividends will<br />
expectation. Net income for 2001 was<br />
revolving credit facility for 7 years<br />
be allocated from operations in 2001.<br />
£2.6 million, up 122% on the<br />
and a 7 year term loan with a group<br />
However it is the company’s policy to<br />
previous year’s figure of £1.2 million.<br />
of banks: Halifax Bank of Scotland,<br />
pay dividends and in 2000 dividends<br />
Working capital from operating<br />
HSBC and Royal Bank of Scotland.<br />
were 20% of nominal value,<br />
activities in 2001 amounted to £4.1<br />
This ensures that medium-long term<br />
significantly above expectations.<br />
million, representing a 64% rise over<br />
funding is in place to support our<br />
£2.5 million generated in 2000.<br />
continued growth requirements. Net<br />
Capital expenditure for the year was<br />
at £1.6 million, the same as in 2000.<br />
interest for the year was £0.7 million<br />
falling from £0.8 million in 2000.<br />
Accounting standards<br />
Group accounts are in Icelandic<br />
Excluded is the cost of the<br />
acquisitions of KFF and FPL in<br />
December 2001, in total an<br />
investment of £101.8 million. Net<br />
funds outflow for 2001 was £116.1<br />
million and financing activities<br />
generated a net inflow of £116.4<br />
million, raised by debt financing and<br />
equity offering used to finance the<br />
above acquisitions. Tax and dividend<br />
Tax<br />
Tax charges for the year were £1.0<br />
million resulting in an effective rate<br />
of tax of 28.4% compared to<br />
standard U.K. corporation tax of 30%.<br />
The group has been active in tax<br />
planning and in the U.K. effective use<br />
has been made of offset losses. In<br />
Krónur but are also available in Euro<br />
and Sterling. Group accounting is<br />
based around the principal of<br />
transparency of business and all<br />
subsidiaries are included in group<br />
accounts. For the year 2001, 17.5% of<br />
Group business is in eurozone<br />
countries so the group is well<br />
prepared for future conversion of<br />
accounts in the U.K.<br />
payments totaled £1.0 million<br />
Iceland effects of changing tax rates<br />
have been minimised with the<br />
effective tax rate remaining relatively<br />
constant. In 2002 the corporation tax<br />
rate will fall from 30% down to 18%<br />
and efficient use of this low rate will<br />
be part of our future tax initiatives.
32<br />
Treasury policies<br />
Liquidity risk<br />
Risk management<br />
Internal treasury uses global cash<br />
pooling to centralise cash control.<br />
Group treasury activities are carefully<br />
monitored by the Group Finance<br />
Controller, part of a five-strong team<br />
based in Copenhagen. The purpose<br />
of the treasury policies is to ensure<br />
that adequate cost effective funding<br />
is secured for Bakkavör and that<br />
exposure to financial risk is<br />
minimized. All foreign exchange risk<br />
is hedged through the purchase of<br />
forward contracts however no<br />
speculative trading is permitted<br />
within the group.<br />
The treasury group has a tightly<br />
controlled reporting structure and<br />
clearly defined policies. Internal<br />
audits are conducted on a regular<br />
basis.<br />
Interest rate<br />
management<br />
Bakkavör manages exposure to<br />
interest rate fluctuations though<br />
capped rate agreements for 80% of<br />
debt with floating rates. At year end<br />
2001 Bakkavör’s borrowings were at<br />
£71.2 million, and from January 2002,<br />
interest rates on 80% of our<br />
borrowings are capped for 3 years.<br />
Liquidity is good and the group<br />
currently has sufficient headroom with<br />
7 year funding of loans. Committed<br />
bank facilities include a convertible<br />
loan of £15.9 million.<br />
Foreign currency<br />
risk<br />
Revenue generated within the UK is<br />
expected to comprise 78% of Group<br />
revenue for 2002. Our currency<br />
management strategy is to control<br />
risk within set parameters and<br />
therefore full hedging of currencies<br />
through forwards is exploited. In<br />
order to protect our U.K. balance<br />
sheet from the effect of currency<br />
fluctuations on our European assets,<br />
an appropriate level of borrowings<br />
are denominated in Euros. Foreign<br />
currency payment risks are eliminated<br />
through the use of forward exchange<br />
contracts.<br />
We annually review our insurance<br />
requirements and risks. Business<br />
continuity contingencies include<br />
assessment of our ability to maintain<br />
production capabilities. Information<br />
systems are maintained and<br />
protected as fail-safe facilities at a<br />
secure location.
Financial Statement, Summary GBP<br />
Consolidated profit and loss account 2001<br />
2001 2000<br />
Turnover 41,036,093 22,496,462<br />
Cost of sales (29,924,749) (14,842,485)<br />
Depreciation (2,024,105) (1,089,257)<br />
Other operating expenses (4,825,687) (4,153,601)<br />
33<br />
Operating profit before financial items 4,261,551 2,411,119<br />
Net financial expenses (684,091) (761,677)<br />
Income before taxes 3,577,460 1,649,442<br />
Income tax (1,016,590) (494,660)<br />
Profit on ordinary activities after taxation 2,560,870 1,154,782<br />
Dividends paid (668,880) (300,883)<br />
Retained profit carried forward 1,891,990 853,898<br />
Figures in GBP
Balance Sheet as at December 31 2001<br />
31.12. 2001 31.12. 2000<br />
34<br />
Fixed assets<br />
Intangible assets 103,294,649 8,685,014<br />
Tangible assets 20,283,043 7,838,380<br />
Investments 561,719 623,772<br />
124,139,411 17,147,166<br />
Current assets<br />
Stocks 9,521,420 8,761,328<br />
Debtors due within one year 18,428,753 7,415,357<br />
Cash 8,257,364 2,183,921<br />
36,207,536 18,360,606<br />
Creditors<br />
Due within one year (25,675,183) (16,710,502)<br />
(25,675,183) (16,710,502)<br />
Net current assets 10,532,353 1,650,104<br />
Total assets less current liabilities 134,671,764 18,797,270<br />
Creditors: due after one year<br />
Borrowings (71,031,704) (9,855,282)<br />
(71,031,704) (9,855,282)<br />
Provisions for liabilities and charges (720,786) (522,412)<br />
Net assets 62,919,273 8,419,576<br />
Capital and reserves<br />
Called up share capital 10,165,611 3,344,403<br />
Share premium 35,805,065 3,369,559<br />
Other equity 1,004,147 1,705,615<br />
Equity shareholders funds 46,974,823 8,419,576<br />
Subordinated convertible loan 15,944,450<br />
62,919,273 8,419,576<br />
Figures in GBP
Consolidated cash flow statement 2001<br />
2001 2000<br />
Cash inflow from operating activities<br />
Group operating profit 3,244,961 1,916,458<br />
Depreciation 2,024,105 1,089,257<br />
Loss on sale of assets 28,226 5,922<br />
Deferred income tax liability (169,237) 200,368<br />
Affiliated companies (39,574) (131,115)<br />
Stocks, change 1,908,684 (2,128,577)<br />
Current receivables, change (4,134,761) (1,285,123)<br />
Current liabilities, change (1,362,739) 487,590<br />
Cash inflow from operating activities 1,499,667 154,780<br />
35<br />
Net financial expenses (947,997) (564,954)<br />
Purchase of tangible assets (1,651,828) (1,623,147)<br />
Purchase of shares (114,629,942) (6,902,393)<br />
Dividends paid (668,880) (300,883)<br />
Cash flow before use of liquid resources and financing (116,398,981) (9,236,598)<br />
Financing<br />
Issue of ordinary share capital 39,256,714 1,993,071<br />
Increase in debt 77,991,999 8,321,435<br />
Increase in cash in the period 849,733 1,077,908<br />
Cash from acquired companies 5,223,709 399<br />
Cash at beginning of year 2,183,921 1,105,615<br />
Cash at end of year 8,257,364 2,183,921
Bakkavör Group hf.<br />
Financial Statement 2001
Director´s Endorsement<br />
The board and director of Bakkavör Group hf. are of the opinion that the annual accounts contain all the information<br />
necessary to form a clear picture of the company’s standing at the year end, the year’s operating results and the year’s<br />
financial developments.<br />
Operating profits amounted to roughly EUR 4.1 million. The board of the company proposes that no dividend will be paid<br />
out to shareholders in the year 2002, but otherwise refers to the annual accounts regarding changes in the company’s net<br />
worth and disposal of profits.<br />
At the year end number of shareholders were 4,549 but at the beginning of year they were 4,942. One shareholder holds<br />
more than 10% of stock, Bakkabræ›ur with 28.66%.<br />
38<br />
The board and director of Bakkavör Group hf. hereby confirm with their signature, the company´s annual accounts for the<br />
year 2001.<br />
Reykjavík, 25 February 2002<br />
Members of the board<br />
L‡dur Gudmundsson<br />
Managing Director<br />
Ásgeir Thoroddsen<br />
Ágúst Gudmundsson<br />
Chairman<br />
Brynjólfur Bjarnason<br />
Hreinn Jakobsson<br />
Antonios P. Yerolemou<br />
Panikos Joannou Katsouris<br />
Auditor´s Report<br />
To the board of directors and shareholders of Bakkavör Group hf.<br />
We have audited the accompanying balance sheet of Bakkavör Group hf. as of 31 December 2001, and the related statement<br />
of income for the year then ended. These financial statements are the responsibility of the Company’s management. Our<br />
responsibility is to express an opinion on these financial statements based on our audit.<br />
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan<br />
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material<br />
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the<br />
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by<br />
management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a<br />
reasonable basis for our opinion.<br />
In our opinion, the financial statements give a true and fair view of the financial position of Bakkavör Group hf. as of 31<br />
December 2001 and of the results of its operations and its cash flows for the year then ended in accordance with generally<br />
accepted accounting principles applied on a consistent basis.<br />
Reykjavík, 25 February 2002<br />
Deloitte & Touche hf.<br />
Hilmar A. Alfredsson<br />
State Authorized Accountant<br />
Gudlaugur Gudmundsson<br />
State Authorized Accountant
Statement of Income 2001<br />
Operating income<br />
Notes 2001 2000<br />
Sold production 67,033,807 45,495,268<br />
Other operating income 98,141 815,492<br />
67,131,948 46,310,760<br />
39<br />
Operating expenses<br />
Production cost 48,954,629 30,554,439<br />
Other operating expenses 7,894,459 8,550,520<br />
Depreciation 4 3,311,283 2,242,321<br />
60,160,371 41,347,280<br />
Operating profit before financial items 6,971,576 4,963,480<br />
Financial expenses<br />
Net financial expenses 21 (1,119,122) (1,567,972)<br />
Income before taxes 5,852,455 3,395,508<br />
Income tax<br />
Income tax (1,663,065) (1,018,298)<br />
Net income 4,189,390 2,377,210<br />
Figures in EUR
Balance Sheet<br />
Assets<br />
Fixed assets<br />
Notes 31.12. 2001 31. 12. 2000<br />
40<br />
Intangible assets 3<br />
Capitalised development expenses 925,657 1,355,401<br />
Goodwill 168,056,585 16,523,392<br />
168,982,243 17,878,794<br />
Tangible assets 4<br />
Real estate 12,074,069 8,408,063<br />
Vehicles 620,862 266,133<br />
Equipments 20,486,594 7,461,734<br />
33,181,526 16,135,930<br />
Shareholdings 6<br />
Shareholdings in affiliated companies 917,150 1,281,843<br />
Shareholdings in other companies 1,781 2,241<br />
918,931 1,284,084<br />
Total fixed assets 203,082,699 35,298,808<br />
Current assets<br />
Stocks 7<br />
Raw material and packaging 12,837,384 12,605,748<br />
Goods 2,738,939 5,430,143<br />
15,576,323 18,035,891<br />
Current receivables 8<br />
Accounts receivables 25,283,890 14,107,824<br />
Other current receivables 4,864,158 1,157,279<br />
30,148,047 15,265,103<br />
Cash<br />
Bank deposits 13,508,423 4,495,776<br />
13,508,423 4,495,776<br />
Total current assets 59,232,794 37,796,771<br />
Total assets 262,315,493 73,095,579<br />
Figures in EUR
December 31 2001<br />
Equity and liabilities<br />
Equity 9,10<br />
Notes 31.12. 2001 31. 12. 2000<br />
Common stock 16,630,171 6,884,720<br />
Reserve fund 58,574,381 6,936,505<br />
Other equity 1,642,709 3,511,144<br />
Total equity 76,847,262 17,332,369<br />
41<br />
Subordinated convertible loan 11 26,083,916 0<br />
Obligations<br />
Deferred income tax liability 12 1,179,152 1,075,427<br />
Obligations 1,179,152 1,075,427<br />
Liabilities<br />
Long-term liabilities 13<br />
Loans in foreign currencies 124,079,427 21,125,247<br />
Other loans 0 219,551<br />
124,079,427 21,344,799<br />
Current maturities (7,876,924) (1,056,915)<br />
116,202,503 20,287,883<br />
Current liabilities<br />
Current maturities of long-term debt 7,876,924 1,056,915<br />
Bank loans 504,955 17,891,909<br />
Accrued taxes 4,791,574 513,033<br />
Other current liabilities 28,829,206 14,938,043<br />
42,002,660 34,399,900<br />
Liabilities and obligations 159,384,314 55,763,210<br />
Total equity and liabilities 262,315,493 73,095,579
Statement of Cash flow 2001<br />
Cash flow from operating activities<br />
2001 2000<br />
42<br />
Net income 4,189,390 2,377,210<br />
Items not affecting working capital<br />
Depreciation 3,311,283 2,242,321<br />
Calculated inflation adjustments (680,328) (601,627)<br />
Indexation on long term debt 248,598 1,006,597<br />
Loss on sale of assets 46,176 12,190<br />
Deferred income tax liability, change (276,858) 412,473<br />
Affiliated companies (64,740) (269,911)<br />
Working capital from operations 6,773,521 5,179,254<br />
Change in current assets and liabilities<br />
Stocks 3,122,463 (4,381,846)<br />
Current receivables (6,764,156) (2,645,528)<br />
Current liabilities (2,229,338) 1,003,744<br />
Total 902,490 (844,376)<br />
Investing activities<br />
Tangible assets (2,702,265) (3,341,378)<br />
Shareholdings (187,525,927) (14,209,127)<br />
Investing activities (190,228,192) (17,550,505)<br />
Financing activities<br />
Bank loans (12,509,516) 16,203,844<br />
New long term-debt 126,968,008 1,548,450<br />
Subordinated loan 26,083,916 0<br />
Payments of long-term debt (12,953,388) (621,957)<br />
Dividends paid (1,094,238) (619,392)<br />
Proceeds from issue of capital stock 64,221,019 4,102,895<br />
Financing activities 190,715,801 20,613,840<br />
Net increase in cash 1,390,099 2,218,960<br />
Cash from acquired companies 8,545,594 821<br />
Cash at beginning of year 3,572,731 2,275,996<br />
Cash at end of year 13,508,423 4,495,776<br />
Figures in EUR
Notes<br />
Accounting policies<br />
1. The consolidated financial statements are prepared in accordance with the law and generally accepted accounting<br />
principles. In all material respects, the same accounting policies have been used in financial statements as in the<br />
previous year, except that a change is made in the entry of exchange rate difference. With reference to IAS 21 and<br />
39, the exchange rate difference on foreign loans taken to finance the takeover of foreign subsidiaries is entered in<br />
the equity section against the exchange rate calculations relating to the subisidiaries operations and assets. Foreign<br />
exchange losses, after taxes and the effects of price-level changes, amount to EUR 2.2 million.<br />
The financial statements for the Icelandic subsidiaries are prepared according to the cost method, taking into account<br />
the effects of general price level changes. The income statement is intended to present the year's earnings at average<br />
price level, while the figures in the balance sheet are based on the price level at the end of the year. Calculation<br />
is based on the changes in the consumer price index, which rose by 8.61% in 2001. The book value of intangible<br />
and tangible assets are revalued to 2001 year-end prices. The effects of general price-level changes on monetary<br />
assets and liabilities at the beginning of the year and their changes within the year have been calculated and are<br />
accounted for in the financial statements, with the resulting inflation adjustments amounting to EURO 680,330.<br />
The increase in book value of fixed assets and revenue entry due to price level changes are credited to the<br />
revaluation account under the equity section of the balance sheet.<br />
43<br />
Assets and liabilities linked to an index or denominated in foreign currencies are entered into accounts at the yearend<br />
price level or exchange rate.<br />
The accounts for the other subsidiaries are prepared according to the cost method. The income statement is calculated<br />
at the year's average price level, while the balance sheet is based on the price level at the end of the year.<br />
Other accounting methods used for individual items in the accounts are noted below.<br />
For the convenience of the reader the annual accounts have been translated from Icelandic krónur to EUR based on<br />
the historic ISK/EUR exchange rate at the end of 2000 and 2001.<br />
Subsidiaries<br />
2. The consolidated financial statements of Bakkavör Group hf. include these subsidiaries.<br />
Interest<br />
Bakkavör Ísland hf. 100%<br />
Bakkavör ITC ehf. av 100%<br />
Bakkavör Holding ApS 100%<br />
Bakkavör UK Ltd 100%<br />
Bakkavör Birmingham Ltd 100%<br />
Bakkavör Sweden AB 100%<br />
Bakkavör Germany GmbH 100%<br />
Bakkavör London Ltd 100%<br />
Katsouris Fresh Foods Ltd 100%<br />
Fillo Pastry Ltd 100%<br />
Bakkavör Finland oy 100%<br />
Bakkavör France SA 100%<br />
Bakkavör Chile SA 100%<br />
Bakkavör Polska s.p.a. 75%<br />
The consolidated financial statements are prepared according to equity method.
Notes<br />
Intangible assets<br />
3. Intangible assets consist of capitalised development cost and goodwill resulting from from premiums paid for shares in<br />
subsidiaries. Product development costs entered as assets during the year amounted to EUR 95,520.<br />
44<br />
Intangible assets are revalued and depreciated as follows<br />
Restated cost 1/1 14,208,027<br />
Additions in 2001 153,675,157<br />
Revaluation 2001 2,373,917<br />
Depreciation in 2001 (1,274,859)<br />
Book value 31/12 168,982,243<br />
Fixed assets and depreciation<br />
4. Fixed assets are revalued and depreciated as follows:<br />
Real estate Transport Equipments Total<br />
equipments<br />
Restated cost 1/1 16,139,405 1,081,871 49,301,693 66,522,969<br />
Depreciation 1/1 (4,527,115) (503,513) (30,403,634) (35,434,261)<br />
Book value 1/1 11,612,291 578,358 18,898,059 31,088,708<br />
Restatement in 2001 746,913 29,964 793,755 1,570,632<br />
Purchased in 2001 262,455 154,717 2,688,930 3,106,101<br />
Sold in 2001 (221,298) (59,642) (266,551) (547,491)<br />
Depreciated 2001 (326,290) (82,535) (1,627,599) (2,036,424)<br />
Book value 31/12 12,074,069 620,862 20,486,594 33,181,526<br />
Depreciation rates 4% 15% 8-20%<br />
Depreciation of fixed assets is calculated on a straight-line basis (at a fixed rate), for the period of ownership over the<br />
year, based on the restated original cost. Depreciation is recorded at the average price level for the year. Depreciation<br />
according to the income statement is as follows.<br />
Depreciation of fixed tangible assets 2,036,425<br />
Depreciation of intangible assets note 3. 1,274,859<br />
3,311,283<br />
5. The insurance value of tangible assets at the end of year is EUR 78.3 million.<br />
Figures in EUR
Notes<br />
Shareholdings<br />
6. The company's shares in subsidiaries and affiliated companies (where it holds more than a 20% share) are accounted<br />
for according to the equity method. Shares in other companies are accounted for by the cost method.<br />
Par value Book value<br />
Shares in affiliated companies:<br />
Pesquera Isla Del Rey in Chile 42.07% share 917,150<br />
917,150<br />
Shareholdings in other companies:<br />
Búna›arbanki Íslands 41 89<br />
SÍF hf. 739 739<br />
Frumherji hf. 299 299<br />
Fiskmarka›ur Su›urnesja hf. 231 231<br />
Fiskmarka›ur Íslands hf. 662 423<br />
1,973 1,781<br />
45<br />
Stocks<br />
7. Goods are valued at cost. Raw materials and packaging are valued at cost.<br />
Insurance value of goods at the end of year is EUR 20.9 million.<br />
Current receivables<br />
8. Current receivables are valued at face value and allowance is made for doubtful receivables.<br />
Equity<br />
9. Total capital stock is EURO 16,642,841 as required by the articles of association. At the end of year, the company's own<br />
shares amounted to EUR 12,670.<br />
Total capital stock at end of year according to the annual accounts was EUR 16,642,841 as follows.<br />
Total capital stock under articles of association 16,642,841<br />
Own shares (12,670)<br />
16,630,171
Notes<br />
10. Equity is further differentiated as follows:<br />
Capital stock Reserve Other Total<br />
fund<br />
equity<br />
46<br />
Balance brought forward 5,471,190 5,512,343 2,790,257 13,773,791<br />
New capital stock 11,158,981 53,062,038 64,221,019<br />
Revaluation of fixed assets 424,348 424,348<br />
Exchange differences of foreign shares (3,884,939) (3,884,939)<br />
Gain on net montary assets (782,109) (782,109)<br />
Net profit 4,189,390 4,189,390<br />
Dividend (1,094,238) (1,094,238)<br />
16,630,171 58,574,381 1,642,709 76,847,262<br />
Subordinated convertible loan<br />
11. A subordinated convertible loan is owed to financing institutions. The loan is in GBP, with the balance amounting to EUR<br />
26,083,916 at year-end 2001. The loan is payable in 2009. In 2001-2005, the lenders can convert the loan to share<br />
capital, at a rate of 20% of the loan's principal each year.<br />
Obligations<br />
12. Deferred income tax liability is calculated and entered in the annual accounts. The liability is calculated from the<br />
difference in accounting items according to tax returns, on the one hand, and the company's annual accounts, on<br />
the other.<br />
Changes in the tax liability during the year are as follows<br />
Income tax liability at the beginning of 2001 1,454,473<br />
Computed indexation 103,544<br />
Tax effect of exchange rate difference entry in equity section (788,452)<br />
Income tax payable in 2002 (1,253,479)<br />
Computed income tax for the year 2001 1,663,065<br />
Income tax liability at the end of year 1,179,152<br />
Long term liabilities<br />
13. Long-term liabilities are as follows:<br />
Indexation and denomination<br />
GBP 119,118,166<br />
EUR 4,547,303<br />
USD 202,367<br />
SEK 157,161<br />
JPY 54,431<br />
124,079,427<br />
Figures in EUR
Notes<br />
14. Annual maturities on the company's long-term liabilities were as follows<br />
2002 7,876,926<br />
2003 14,631,511<br />
2004 18,556,698<br />
2005 18,336,644<br />
2006 20,594,451<br />
Subsequent 124,079,427<br />
47<br />
Taxes<br />
15. Taxes on taxable income to be paid in 2002 have been calculated and entered in the annual accounts and amount to<br />
EUR 4.8 million. Pre-paid taxes have been deducted in the balance sheet.<br />
Mortages and commitments<br />
16. According to a loan agreement with Bank of Scotland, all the company's fixed assets, including shares in subsidiaries, and<br />
the company's liquid assets, including stocks and receivables, are put up as security for the company's debts to the bank<br />
at any given time. The balance of the debt amounted to EUR 123,404,795 at year end.<br />
Other matters<br />
17. The company has purchased a work stoppage insurance to the amount of EUR 137.9 million.<br />
18. Assets bought by a lease contract are capitalized and depreciated as other assets and a liability amounting to EUR 0.93<br />
million at the end of year is recorded in the balance sheet.<br />
19. The company has made rental agreements in Iceland, United Kingdom and Danmark, with the reamaining period being<br />
up to 25 years.<br />
20. Payroll and related expenses<br />
Payroll 8,057,368<br />
Related expenses 1,606,536<br />
9,663,903<br />
Average number of employees 408<br />
21. Financial expenses are as follows:<br />
2001 2000<br />
Interest income 637,067 252,630<br />
Interest expenses and currency difference (2,436,519) (2,422,229)<br />
Calculated inflation adjustment 680,331 601,627<br />
(1,119,122) (1,567,972)
Bakkavör Group hf.<br />
Ársreikningur 2001
Skýrsla stjórnar<br />
A› áliti stjórnar og forstjóra Bakkavarar Group hf. koma fram í ársreikningi flessum allar uppl‡singar sem<br />
nau›synlegar eru til a› glöggva sig á stö›u félagsins í árslok, rekstrarárangri ársins og fjárhagslegri flróun á árinu.<br />
Hagna›ur af rekstri félagsins var rúmar 381,5 milljónir króna. Stjórn félagsins leggur til a› ekki ver›i greiddur<br />
ar›ur til hluthafa á árinu 2002 en vísar a› ö›ru leyti í ársreikninginn um breytingar á eigin fé félagsins og<br />
rá›stöfun hagna›ar.<br />
Í lok ársins voru hluthafar í félaginu 4.549 en voru 4.942 í upphafi árs. Einn hluthafi á meira en 10% hlutafjárins<br />
en fla› eru Bakkabræ›ur sem eiga 28,66%.<br />
50<br />
Stjórn og forstjóri Bakkavarar Group hf. sta›festa hér me› ársreikning félagsins fyrir ári› 2001 me› undirritun<br />
sinni.<br />
Reykjavík, 25. febrúar 2002<br />
Í stjórn<br />
Ágúst Gu›mundsson<br />
Stjórnarforma›ur<br />
L‡›ur Gu›mundsson<br />
Forstjóri<br />
Ásgeir Thoroddsen<br />
Brynjólfur Bjarnason<br />
Hreinn Jakobsson<br />
Antonios P. Yerolemou<br />
Panikos Joannou Katsouris<br />
Áritun endurskoðenda<br />
Til stjórnar og hluthafa í Bakkavör Group hf.<br />
Vi› höfum endursko›a› ársreikning Bakkavarar Group hf. fyrir ári› 2001. Ársreikningurinn hefur a› geyma sk‡rslu<br />
stjórnar, rekstrarreikning, efnahagsreikning, sjó›streymi og sk‡ringar. Ársreikningurinn er lag›ur fram af<br />
stjórnendum félagsins og á ábyrg› fleirra í samræmi vi› lög og reglur. Ábyrg› okkar felst í flví áliti sem vi› látum<br />
í ljós á ársreikningnum á grundvelli endursko›unarinnar.<br />
Endursko›a› var í samræmi vi› gó›a endursko›unarvenju en samkvæmt henni skal skipuleggja og haga<br />
endursko›uninni flannig a› nægjanleg vissa fáist um a› ársreikningurinn sé í meginatri›um annmarkalaus.<br />
Endursko›unin felur í sér greiningara›ger›ir, úrtakskannanir og athuganir á gögnum til a› sannreyna fjárhæ›ir og<br />
a›rar uppl‡singar sem koma fram í ársreikningnum. Endursko›unin felur einnig í sér athugun á fleim<br />
reikningsskilaa›fer›um og matsreglum sem nota›ar eru vi› ger› ársreikningsins og mat á framsetningu hans í<br />
heild. Vi› teljum a› endursko›unin sé nægjanlega traustur grunnur til a› byggja álit okkar á.<br />
fia› er álit okkar a› ársreikningurinn gefi glögga mynd af afkomu félagsins á árinu 2001, efnahag fless 31.<br />
desember 2001, og breytingu á handbæru fé á árinu 2001, í samræmi vi› lög, samflykktir félagsins og gó›a<br />
reikningsskilavenju.<br />
Reykjavík, 25. febrúar 2002<br />
Deloitte & Touche hf.<br />
Hilmar A. Alfre›sson<br />
endursko›andi<br />
Gu›laugur Gu›mundsson<br />
endursko›andi
Rekstrarreikningur ársins 2001<br />
Sk‡r. 2001 2000<br />
Rekstrartekjur<br />
Seldar afur›ir 6.105.439.102 3.292.947.465<br />
A›rar rekstrartekjur 8.938.704 59.025.311<br />
6.114.377.806 3.351.972.776<br />
51<br />
Rekstrargjöld<br />
Framlei›slukostna›ur 4.458.787.646 2.211.530.268<br />
Annar rekstrarkostna›ur 719.027.305 618.886.611<br />
Afskriftir 4 301.591.685 162.299.226<br />
5.479.406.636 2.992.716.105<br />
Hagna›ur fyrir fjármagnsli›i 634.971.170 359.256.671<br />
Fjármunatekjur og (fjármagnsgjöld)<br />
Fjármunatekjur og (fjármagnsgjöld) samtals 21 (101.929.599) (113.489.828)<br />
Hagna›ur fyrir skatta 533.041.571 245.766.843<br />
Tekjuskattur<br />
Tekjuskattur (151.471.930) (73.704.397)<br />
Hagna›ur 381.569.641 172.062.446<br />
Fjárhæ›ir í íslenskum krónum
Efnahagsreikningur<br />
Eignir<br />
Fastafjármunir<br />
Sk‡r. 31. 12. 2001 31. 12. 2000<br />
52<br />
Óefnislegar eignir 3<br />
Langtímakostna›ur 84.308.881 98.103.955<br />
Vi›skiptavild 15.306.593.784 1.195.963.138<br />
15.390.902.665 1.294.067.093<br />
Varanlegir rekstrarfjármunir 4<br />
Fasteignir 1.099.706.239 608.575.600<br />
Flutningatæki 56.548.143 19.262.699<br />
Vélar og áhöld 1.865.918.968 540.080.339<br />
3.022.173.350 1.167.918.638<br />
Áhættufjármunir og langtímakröfur 6<br />
Eignarhlutar í hlutdeildarfélögum 83.534.022 92.779.802<br />
Eignarhlutar í ö›rum félögum 162.183 162.183<br />
83.696.205 92.941.985<br />
Fastafjármunir 18.496.772.220 2.554.927.716<br />
Veltufjármunir<br />
Vörubirg›ir 7<br />
Hráefni og umbú›ir 1.169.228.966 912.404.043<br />
Afur›ir 249.462.540 393.033.776<br />
1.418.691.506 1.305.437.819<br />
Skammtímakröfur 8<br />
Vi›skiptakröfur 2.302.856.661 1.021.124.325<br />
A›rar skammtímakröfur 443.027.485 83.763.835<br />
2.745.884.146 1.104.888.160<br />
Handbært fé<br />
Bankainnstæ›ur 1.230.347.209 325.404.298<br />
1.230.347.209 325.404.298<br />
Veltufjármunir 5.394.922.861 2.735.730.277<br />
Eignir 23.891.695.081 5.290.657.993<br />
Fjárhæ›ir í íslenskum krónum
31. desember 2001<br />
Eigið fé og skuldir<br />
Sk‡r. 31.12. 2001 31.12. 2000<br />
Eigið fé 9,10<br />
Hlutafé 1.514.676.002 498.316.002<br />
Varasjó›ur 5.334.954.663 502.064.218<br />
Anna› eigi› fé 149.617.972 254.136.626<br />
Eigi› fé 6.999.248.637 1.254.516.846<br />
53<br />
Víkjandi breytanlegt lán 11 2.375.723.088 0<br />
Skuldbindingar<br />
Tekjuskattsskuldbinding 12 107.397.130 77.839.388<br />
Skuldbindingar 107.397.130 77.839.388<br />
Skuldir<br />
Langtímaskuldir 13<br />
Lán í erlendum gjaldmi›lum 11.301.154.195 1.529.045.397<br />
Lán í íslenskum krónum 0 15.891.125<br />
11.301.154.195 1.544.936.522<br />
Næsta árs afborganir (717.430.267) (76.499.533)<br />
10.583.723.928 1.468.436.989<br />
Skammtímaskuldir<br />
Næsta árs afborganir langtímaskulda 717.430.267 76.499.533<br />
Skuldir vi› lánastofnanir 45.991.344 1.295.016.396<br />
Reikna›ir skattar ársins 436.416.575 37.133.294<br />
A›rar skammtímaskuldir 2.625.764.112 1.081.215.547<br />
3.825.602.298 2.489.864.770<br />
Skuldir og skuldbindingar 14.516.723.356 4.036.141.147<br />
Eigi› fé og skuldir 23.891.695.081 5.290.657.993
Sjóðstreymi ársins 2001<br />
54<br />
Sk‡r. 2001 2000<br />
Rekstrarhreyfingar<br />
Hagna›ur ársins 381.569.641 172.062.446<br />
Rekstrarli›ir sem ekki hafa áhrif á fjárstreymi<br />
Afskriftir 301.591.685 162.299.226<br />
Ver›breytingarfærsla (61.964.255) (43.545.764)<br />
Ver›bætur og gengismunur 22.642.329 72.857.496<br />
Sölutap 4.205.696 882.344<br />
Tekjuskattsskuldbinding breyting (25.216.249) 29.854.819<br />
Hlutdeild í hagna›i hlutdeildarfélaga (5.896.552) (19.536.144)<br />
Veltufé frá rekstri 616.932.295 374.874.423<br />
Breyting á rekstrartengdum eignum og skuldum<br />
Vörubirg›ir, lækkun (hækkun) 284.393.968 (317.158.004)<br />
Skammtímakröfur, hækkun (616.079.364) (191.483.322)<br />
Skammtímaskuldir, (lækkun) hækkun (203.048.081) 72.650.970<br />
Handbært fé frá (til) rekstri 82.198.818 (61.115.933)<br />
Fjárfestingarhreyfingar<br />
Fastafjármunir (246.122.326) (241.848.945)<br />
Hlutabréf (17.079.861.430) (1.028.456.585)<br />
Fjárfestingarhreyfingar (17.325.983.756) (1.270.305.530)<br />
Fjármögnunarhreyfingar<br />
Skuldir vi› lánastofnanir (1.139.366.713) 1.172.834.217<br />
N‡jar langtímaskuldir 11.564.246.136 112.076.807<br />
Víkjandi lán 2.375.723.088<br />
Afborganir langtímaskulda (1.179.794.604) (45.017.215)<br />
Greiddur ar›ur (99.663.182) (44.831.600)<br />
Innborga› hlutafé 5.849.250.445 296.967.559<br />
Fjármögnunarhreyfingar 17.370.395.170 1.492.029.768<br />
Hækkun handbærs fjár 126.610.232 160.608.305<br />
Handbært fé frá keyptum félögum 778.332.679 59.410<br />
Handbært fé í upphafi árs 325.404.298 164.736.583<br />
Handbært fé í lok tímabils 1.230.347.209 325.404.298<br />
Fjárhæ›ir í íslenskum krónum
Skýringar<br />
Reikningsskilaa›fer›ir<br />
1. Ársreikningur samstæ›u Bakkavarar Group hf. er í samræmi vi› lög og gó›a reikningsskilavenju. Vi› ger› ársreikningsins<br />
er í öllum meginatri›um fylgt sömu reikningsskilaa›fer›um og á fyrra ári a› flví undanskyldu a› ger› er breyting á færslu<br />
gengismunar. Me› vísan til IAS 21 og 39 er gengismunur á erlendum lánum sem tekin voru til fjármögnunar á kaupum á<br />
erlendum dótturfélögum fær›ur yfir eigi› fé til mótvægis vi› gengisumreikning af rekstri og eignum dótturfélaganna.<br />
Gengistapi› a› teknu tilliti til skattáhrifa og áhrifa ver›lagsbreytinga er kr. 207,5 milljónir.<br />
55<br />
Ársreikningurinn er ger›ur eftir kostna›arver›sa›fer› a› teknu tilliti til áhrifa ver›lagsbreytinga.<br />
Í íslenskum félögum samstæ›unnar er notu› kostna›arver›sa›fer› a› teknu tilliti til áhrifa ver›lagsbreytinga. fiannig er<br />
rekstrarreikningi ætla› a› s‡na afkomu á me›alver›lagi en fjárhæ›ir í efnahagsreikningi eru á ver›lagi í lok ársins. Mi›a›<br />
er vi› breytingu á neysluver›svísitölu en hún hækka›i um 8,61% á árinu. Varanlegir rekstrarfjármunir og óefnislegar eignir<br />
eru endurmetnar me› flví a› framreikna upphaflegt stofnver› fleirra og afskriftir til ársloka 2001. fieir varanlegu rekstrarfjármunir<br />
og flær óefnislegu eignir sem vi› bættust e›a voru seld eru endurmetin mi›a› vi› eignarhaldstíma. Áhrif ver›-<br />
lagsbreytinga á peningalegar eignir og skuldir eins og flær voru í byrjun reikningsársins og á breytingu fleirra á árinu eru<br />
reiknu› og mynda reikna›ar tekjur vegna ver›lagsbreytinga a› fjárhæ› kr. 61.964.255. Endurmatshækkun varanlegra<br />
rekstrarfjármuna og reikna›ar tekjur vegna ver›lagsbreytinga er fær› á endurmatsreikning me›al eiginfjárli›a í<br />
efnahagsreikningi.<br />
Eignir og skuldir sem bundnar eru vísitölu e›a gengi erlendra gjaldmi›la eru fær›ar upp mi›a› vi› ver›lag e›a gengi í árslok.<br />
Í ö›rum félögum samstæ›unnar er notu› kostna›arver›sa›fer›. Rekstrarli›ir eru reikna›ir í íslenskar krónur á me›algengi<br />
tímabilsins en efnahagsli›ir eru reikna›ir í íslenskar krónur á árslokagengi.<br />
A›rar reikningsskilaa›fer›ir sem snerta einstök efnisatri›i ársreikningsins eru tilgreindar í sk‡ringum hér á eftir.<br />
Samstæ›a<br />
2. Samstæ›ureikningsskil Bakkavarar Group hf. taka til flessara dótturfélaga:<br />
Eignarhluti<br />
Bakkavör Ísland hf. 100%<br />
Bakkavör ITC ehf. av 100%<br />
Bakkavör Holding ApS 100%<br />
Bakkavör UK Ltd 100%<br />
Bakkavör Birmingham Ltd 100%<br />
Bakkavör Sweden AB 100%<br />
Bakkavör Germany GmbH 100%<br />
Bakkavör London Ltd 100%<br />
Katsouris Fresh Foods Ltd 100%<br />
Fillo Pastry Ltd 100%<br />
Bakkavör Finland oy 100%<br />
Bakkavör France SA 100%<br />
Bakkavör Chile SA 100%<br />
Bakkavör Polska s.p.a 75%<br />
Samstæ›an er samin í samræmi vi› kaupver›sreglu.
Skýringar<br />
Óefnislegar eignir<br />
3. Óefnislegar eignir samanstanda annars vegar af langtímakostna›i vegna vöruflróunar frá fyrri árum og hins vegar af<br />
vi›skiptavild sem er vegna yfirver›s af kaupum á hlutabréfum í dótturfélögum. Eignfær› vöruflróun á árinu var 8,7<br />
milljónir króna.<br />
56<br />
Nánar greinast óefnislegar eignir flannig:<br />
Stofnver› í ársbyrjun 1.294.067.093<br />
Vi›bót á árinu, stofnver› 13.996.733.315<br />
Endurmat og gengismunur á árinu 216.216.380<br />
Afskrifa› á árinu (116.114.123)<br />
Bókfært ver› í árslok 15.390.902.665<br />
Varanlegir rekstrarfjármunir og afskriftir<br />
4. Varanlegir rekstrarfjármunir greinast flannig:<br />
Fasteignir Flutninga- Vélar og Samtals<br />
tæki<br />
áhöld<br />
Stofnver› 1.1. og vi›bót á árinu 1.469.977.033 98.536.811 4.490.398.174 6.058.912.018<br />
Afskrifa› á›ur og vi›bót á árinu (412.329.600) (45.859.952) (2.769.162.945) (3.227.352.497)<br />
Bókfært ver› 1/1 1.057.647.433 52.676.859 1.721.235.229 2.831.559.521<br />
Endurmat á árinu 68.028.796 2.729.152 72.295.207 143.053.155<br />
Keypt á árinu 23.904.372 14.091.583 244.907.767 282.903.722<br />
Selt á árinu (20.155.856) (5.432.177) (24.277.487) (49.865.520)<br />
Afskrifa› á árinu (29.718.506) (7.517.274) (148.241.748) (185.477.528)<br />
Bókfært ver› í árslok 1.099.706.239 56.548.143 1.865.918.968 3.022.173.350<br />
Afskriftarhlutföll 4% 15% 8-20%<br />
Afskriftir eru reikna›ar sem fastur árlegur hundra›shluti af framreiknu›u kostna›arver›i mi›a› vi› eignarhaldstíma á<br />
árinu og fær›ar til gjalda á me›alver›lagi ársins. Afskriftir samkvæmt rekstrarreikningi greinast flannig:<br />
Afskrift varanlegra rekstrarfjármuna 185.477.562<br />
Afskriftir óefnislegra eigna sbr. sk‡ringu 3 116.114.123<br />
301.591.685<br />
5. Vátryggingamat<br />
Vátryggingamat fastafjármuna nam í árslok um 7.135 milljónum króna.<br />
Fjárhæ›ir í íslenskum krónum
Skýringar<br />
Eignarhlutar í félögum<br />
6. Eignarhlutar félagsins í fleim félögum flar sem eignarhlutdeildin er umfram 20% eru fær›ir samkvæmt hlutdeildara›fer›.<br />
Eignarhlutar í ö›rum félögum eru bókfær›ir á kostna›arver›i.<br />
Nafnver› Bókfært ver›<br />
Eignarhlutar í hlutdeildarfélögum:<br />
Pesquera Isla Del Rey í Chile, 42,07% hlutdeild 83.534.022<br />
83.534.022<br />
Eignarhlutar í ö›rum félögum:<br />
Búna›arbanki Íslands 3.760 8.084<br />
SÍF hf. 67.326 67.326<br />
Frumherji hf. 27.273 27.273<br />
Fiskmarka›ur Su›urnesja hf. 21.000 21.000<br />
Fiskmarka›ur Íslands hf. 60.300 38.500<br />
179.659 162.183<br />
57<br />
Birg›ir<br />
7. Afur›ir eru metnar vi› kostna›arver›i.<br />
Hráefni og rekstrarvörur eru metnar á kostna›arver›i.<br />
Vátryggingamat birg›a nemur í árslok um 1.903 milljónir króna.<br />
Skammtímakröfur<br />
8. Skammtímakröfur eru fær›ar á nafnver›i a› teknu tilliti til ni›urfærslu krafna sem kunna a› tapast.<br />
Eigi› fé<br />
9. Heildarhlutafé félagsins er kr. 1.515.830.002 eins og kve›i› er á um í samflykktum fless. Í lok tímabils voru í eigu<br />
félagsins hlutir a› nafnver›i kr. 1.154.000.<br />
Hlutafé samkvæmt ársreikningi nemur kr. 1.514.676.002 og greinist fla› flannig:<br />
Heildarhlutafé samkvæmt samflykktum félagsins 1.515.830.002<br />
Eigin hlutir (1.154.000)<br />
1.514.676.002
Skýringar<br />
10. Yfirlit yfir eiginfjárreikninga:<br />
58<br />
Hlutafé Varasjó›ur Anna› Samtals<br />
eigi› fé<br />
eigi› fé<br />
Yfirfært frá fyrra ári 498.316.002 502.064.218 254.136.626 1.254.516.846<br />
N‡tt hlutafé 1.016.360.000 4.832.890.445 5.849.250.445<br />
Endurmat fastafjármuna 38.649.656 38.649.656<br />
fi‡›ingarmismunur á erlendum eignarhlutum (353.840.252) (353.840.252)<br />
Reikna›ar tekjur vegna ver›lagsbreytinga (71.234.517) (71.234.517)<br />
Hagna›ur ársins 381.569.641 381.569.641<br />
Greiddur ar›ur (99.663.182) (99.663.182)<br />
1.514.676.002 5.334.954.663 149.617.972 6.999.248.637<br />
Víkjandi breytanlegt lán<br />
11. Víkjandi breytanlegt lán er vi› lánastofnanir. Láni› er í breskum pundum. og a› eftirstö›vum kr. 2.375.723.088 í árslok<br />
2001 Láni› er til grei›slu á árinu 2009. Á árunum 2001 til 2005 geta lánveitendur breytt láninu í hlutafé, 20% árlega af<br />
höfu›stól láns.<br />
Skuldbindingar<br />
12. Tekjuskattsskuldbinding er reiknu› og fær› í ársreikninginn. Tekjuskattsskuldbindingin stafar af mismun efnahagsli›a í<br />
skattauppgjöri annars vegar og ársreikningi hins vegar. Mismunurinn stafar af flví a› tekjuskattsstofn félagins er mi›a›ur<br />
vi› a›rar forsendur en reikningsskil fless.<br />
Breyting tekjuskattskuldbindingarinnar á árinu greinist flannig:<br />
Tekjuskattskuldbinding í ársbyrjun og vi›bót 132.473.444<br />
Ver›bætur og gengismunur 9.430.800<br />
Skattaáhrif af færslu gengismunar yfir eigi› fé (71.812.191)<br />
Tekjuskattur til grei›slu á árinu 2002 (114.166.853)<br />
Tekjuskattur vegna ársins 2001 151.471.930<br />
Tekjuskattsskuldbinding í árslok 107.397.130<br />
Langtímaskuldir<br />
13. Yfirlit um langtímaskuldir<br />
Gengis- og ver›trygging<br />
GBP 10.849.282.526<br />
EUR 414.168.314<br />
USD 18.431.559<br />
SEK 14.314.252<br />
JPY 4.957.544<br />
11.301.154.195<br />
Fjárhæ›ir í íslenskum krónum
Skýringar<br />
14. Afborganir af langtímaskuldum félagsins í lok ársins greinast flannig á næstu ár:<br />
Næsta árs afborganir 717.430.416<br />
Afborganir 2003 1.332.638.035<br />
Afborganir 2004 1.690.144.035<br />
Afborganir 2005 1.670.101.555<br />
Afborganir 2006 1.875.742.617<br />
Afborganir sí›ar 4.015.097.537<br />
11.301.154.195<br />
59<br />
Skattamál<br />
15. Skattar á hagna› ársins og eignir sem ver›a lag›ir á félagi› á árinu 2002 hafa veri› reikna›ir og fær›ir í ársreikninginn<br />
og nema fleir kr. 436,4 milljónum. Til frádráttar reiknu›um sköttum ársins í efnahagsreikningi hafa veri› fær›ar<br />
fyrirframgrei›slur.<br />
Ábyrg›ir og ve›setningar<br />
16. Samkvæmt lánasamningi vi› Bank of Scotland eru allir fastafjármunir félagsins, flar me› talin hlutabréf í dótturfélögum<br />
og lausafé félagsins, flar me› taldar vörubirg›ir og almennar kröfur ve›settar til tryggingar skuldum félagsins vi›<br />
bankann hverju sinni. Eftirstö›var skulda árslok voru kr. 11.239.982.000.<br />
Önnur mál<br />
17. Félagi› hefur keypt rekstrarstö›vunartryggingu vegna bruna- og vatnstjóns og nemur bótafjárhæ›in allt a› 12.559<br />
milljónum króna.<br />
18. Ger›ir hafa veri› nokkrir fjármögnunarleigusamningar vegna kaupa á vélum og vélbúna›i. firátt fyrir eignarréttarfyrirvara<br />
leigusala eru flessir leigufjármunir fær›ir til eignar í ársreikningi me›al varanlegra rekstrarfjármuna og endurmetnir og<br />
afskrifa›ir á sama hátt. Skuld vi› leigusala er fær› me›al langtímaskulda og eru eftirstö›var um 84,8 milljónir króna í<br />
árslok 2001.<br />
19. Félagi› hefur gert samninga um húsaleigu á Íslandi, Bretlandi og Danmörku og er leigutími allt a› 25 árum.<br />
20. Laun og tengd gjöld greinast flannig:<br />
Laun 733.865.033<br />
Launatengd gjöld 146.323.260<br />
880.188.293<br />
Me›alfjöldi starfa 408<br />
Heildarlaun og flóknanir til helstu stjórnenda félagsins á árinu 2001 námu 132,3 milljónum króna.<br />
21. Fjármunatekjur og (fjármagnsgjöld) greinast flannig:<br />
2001 2000<br />
Vaxtatekjur 58.024.020 18.285.328<br />
Vaxtagjöld og gengismunur (221.918.126) (175.320.950)<br />
Reikna›ar tekjur vegna áhrifa ver›lagsbreytinga 61.964.507 43.545.794<br />
(101.929.599) (113.489.828)