Eimskipafelag Islands hf. · OMXICE:EIM
Eimskipafelag Islands hf — Investor Presentation (March 2017)
51 slides from Eimskipafelag Islands hf's investor presentation, March 2017
Slide 1: Eimskipafélag Íslands hf.
EIMSKIPAFÉLAG ÍSLANDS HF. March 2017
Slide 2: Eimskip at a Glance
EIMSKIP AT A GLANCE Niche player in transportation in the North Atlantic Liner services Revenue 2016 Market Cap in the North Atlantic and worldwide freight EUR 506 m EUR 514 m as at 9 March 2017 forwarding services 60 own offices 21 vessels 1,700 and 69 associates in a total of on five routes employ
Slide 3: Over Hundred Years of Experience
OVER HUNDRED YEARS OF EXPERIENCE Eimskip founded in 1914 3
Slide 4: Mission and Vision
MISSION VISION EIMSKIP IS A LEADING TRANSPORTATION COMPANY IN THE NORTH ATLANTIC WITH CONNECTIONS EXCELLENCE IN TRANSPORTA’ TO INTERNATIONAL MARKETS AND IS SPECIALIZED IN WORLDWIDE FREIGHT FORWARDING SERVICES SECURE A GOOD RETURN FOR... [ U i i < SHAREHOLDERS hus \ STOMEF ... WITH PROFITABLE GROWTH
Slide 5: Organizational Structure
ORGANIZATIONAL STRUCTURE Experienced Management Team 5
Slide 6: Operations
OPERATIONS 6
Slide 7: Offices, Associates and Employees
OFFICES, ASSOCIATES AND EMPLOYEES International network with 60 own offices and 69 associates in a total of 48 countries 60 own offices in 20 countries 69 associates in 40 countries 1,703 employees 1 142 7 11 10 18 13 898 663 34 35 Iceland Iceland Iceland Europe and North America Europe and North Am
Slide 8: Business Segments
BUSINESS SEGMENTS Liner services in the North Atlantic and international forwarding services Liner services Revenue by segment Geographical split of revenue The core of the company’s Port operations operations Chilled and cold storage facilities Eimskip’s home market includes Warehousing I
Slide 9: The Vessel Fleet
OTHER OPERATIONS IN THE NORTH ATLANTIC THE VESSEL FLEET LANGFOSS Built 1991 21 vessels in operation, 12 own and 9 chartered Reefer (bulk) GT 3,625 STIGFOSS Built 1990 Reefer (bulk) GT 3,625 BLUE LINE GRAY LINE NORDVÅG GODAFOSS BLIKUR Built 1979 Built 1995 Built 2003 Reefer (bulk/TEU44) TEU 1,457 TEU
Slide 10: Eimskip's Home Market
EIMSKIP’S HOME MARKET Niche market areas with rich natural resources and small population GREENLAND 56,000 inhabitants MAINE, UNITED STATES 1,330,000 inhabitants NEWFOUNDLAND AND LABRADOR 530,000 inhabitants ICELAND 330,000 inhabitants NORTHERN NORWAY THE FAROE ISLANDS 500,000 inhabitants 50,000 inh
Slide 11: Dynamic Sailing System
DYNAMIC SAILING SYSTEM Flexible system meeting customer requirements In February 2015, the company’s Green Line and Red Line were combined into a new Green Line with three vessels A direct sailing route between Europe and North America with port calls in Iceland Increased annual number of voya
Slide 12: Eimskip's Sailing System
EIMSKIP’S SAILING SYSTEM In the North Atlantic 12
Slide 13: Eimskip's Transport Network
EIMSKIP’S TRANSPORT NETWORK In the North Atlantic 13
Slide 14: Other Operations and Operating Assets
OTHER OPERATIONS AND OPERATING ASSETS Support and benefit from core operations Terminal operations in 13 locations in four countries 14 chilled and cold storages in five countries 26 warehouses in eight countries Trucking and distribution in five countries Air-freight services in five coun
Slide 15: Forwarding Services
FORWARDING SERVICES A network of own offices and associates Eimskip’s forwarding services provide forwarding solutions outside of the company’s own operating system Forwarding services and liner services support each other Eimskip supports its customers’ operations by providing them access to
Slide 16: Global Network
GLOBAL NETWORK 60 own offices and 69 associates in a total of 48 countries 16
Slide 17: Europe, North America and Asia
EUROPE, NORTH AMERICA AND ASIA Connecting the home market to other areas One of the roles of Eimskip’s operations in Europe, North America and Asia, outside the home market, is to connect the home market to other countries in these areas A large part of Eimskip’s operations involves forwarding s
Slide 18: Competition
COMPETITION Eimskip is the largest container transportation company in its home market Eimskip is a niche player and the only container carrier offering Eimskip is the largest container Faroe Ship, Eimskip’s subsidiary, Direct liner services between Iceland and North transportation company in Ic
Slide 19: Finances
FINANCES 19
Slide 20: Key Highlights for 2016
KEY HIGHLIGHTS FOR 2016 2016 compared to 2015 EBITDA growth EBIT 18.3% up by 24.1% Net earnings Normalized EBITDA growth Normalized EBIT up by 23.0% 23.7% up by 37.4% Volume in Volume in liner services forwarding services Strong cash flow up by 5.9% up by 4.8% 20
Slide 21: Transported Volume 2012 to 2016
TRANSPORTED VOLUME 2012 TO 2016 Changes from previous year LINER SERVICES FORWARDING SERVICES Volume index: 2010 volume at 100 21
Slide 22: Key Highlights for Q4 2016
KEY HIGHLIGHTS FOR Q4 2016 Q4 2016 compared to Q4 2015 EBITDA growth Net earnings Revenue growth 1.6% lower by 16.4% 7.6% Norway below Increased depreciation expectations Volume in liner services Volume in forwarding services Strong cash flow up by 0.1% Lower Norway volume up by 9.3% 22
Slide 23: Transported Volume in Q4 2012 to 2016
TRANSPORTED VOLUME IN Q4 2012 TO 2016 Changes from Q4 in previous year LINER SERVICES FORWARDING SERVICES Volume index: 2010 volume at 100 23
Slide 24: Liner Services Volume
LINER SERVICES VOLUME Iceland, Faroe Islands, Norway and Trans-Atlantic 24
Slide 25: Forwarding Services Volume
FORWARDING SERVICES VOLUME Reefer and dry cargo forwarding 25
Slide 26: China Forwarders Freight Index
CHINA FORWARDERS FREIGHT INDEX China - Europe 26
Slide 27: Revenue and EBITDA 2012 to 2016 by Quarter
REVENUE AND EBITDA 2012 TO 2016 BY QUARTER 2016 was a record year REVENUE EBITDA EUR million EUR million Adjusted for one-off items in 2012 in connection with the IPO * EUR 2.0 million gain on disposal of a vessel under construction included in Q3 2015 revenue and EBITDA 27
Slide 28: Income Statement 2016
INCOME STATEMENT 2016 Key highlights EBITDA Revenue Operating expenses EUR 53.5 m EUR 513.9 m up by 1.3% up by 18.3% affected by international despite salary expenses freight rates up by 24.7% EBITDA ratio 10.4% Currency exchange gain EBIT Net earnings EUR 25.4 m EUR 2.5 m EUR 21.9 m compared to up
Slide 29: Geographical Split of Revenue
GEOGRAPHICAL SPLIT OF REVENUE About half of revenue is related to Iceland 29
Slide 30: Revenue and Expenses by Currency 2016
REVENUE AND EXPENSES BY CURRENCY 2016 Income statement relatively naturally hedged – long in USD and short in ISK 30
Slide 31: Revenue by Business Segment
REVENUE BY BUSINESS SEGMENT Liner services and forwarding services 31
Slide 32: EBITDA by Business Segment
EBITDA BY BUSINESS SEGMENT Liner services and forwarding services 32
Slide 33: Business Segment Bridges 2016
BUSINESS SEGMENT BRIDGES 2016 Revenue and EBITDA REVENUE EBITDA EUR million EUR million 33
Slide 34: Salary Bridge 2016
SALARY BRIDGE 2016 Salaries and related expenses 34
Slide 35: Financial Ratios 2012 to 2016
FINANCIAL RATIOS 2012 TO 2016 Low leverage and strong financial position NET DEBT / LTM-EBITDA NET DEBT AND EQUITY RATIO EUR million EUR million Adjusted for one-off items in 2012 35
Slide 36: Cash Flow Bridge 2016
CASH FLOW BRIDGE 2016 Increased cash flow from operating activities 36
Slide 37: CAPEX 2012 to 2017
CAPEX 2012 TO 2017 Operation CAPEX 2016 in line with previous year 37
Slide 38: EBITDA Forecast for 2017
EBITDA FORECAST FOR 2017 EBITDA in the range of EUR 57 to 63 million The outlook for 2017 is positive Continued volume growth is expected in the Icelandic market The strike in the seafood industry in Iceland will affect Q1 results Positive outlook for the Faroe Islands and Norway Forwardin
Slide 39: 20 Largest Shareholders
20 LARGEST SHAREHOLDERS As at 9 March 2017 Shareholders Shares % 1. Yucaipa American Alliance Fund II, LP 30,504,030 15.25% 2. Lífeyrissjóður verslunarmanna 27,485,070 13.74% 3. Yucaipa American Alliance (Parallel) 20,095,970 10.05% 4. Gildi - lífeyrissjóður 18,846,139 9.42% 5. Eimskipafélag Íslands
Slide 40: Dividend Proposal 2017
DIVIDEND PROPOSAL 2017 Proposed total payment EUR 11.0 million DIVIDEND POLICY DIVIDEND PROPOSAL 2017 The policy of Eimskipafélag Íslands hf. is to ISK 6.80 per share pay annual dividend that equals an amount Up by 4.6% from the 2016 dividend in the range of 10-50% of net profit after payment of I
Slide 41: Ongoing Projects and Future Development
ONGOING PROJECTS AND FUTURE DEVELOPMENT 41
Slide 42: The Vessel Fleet
THE VESSEL FLEET Changes in the first months of 2017 Eimskip is constantly working on upgrading and renewing its vessel fleet to better serve customers and ensure reliable services Brúarfoss Built 1992 724 TEU Sold in February 2017 Sophia Built 2008 698 TEU Gearless > cranes to be
Slide 43: Investments
INVESTMENTS Acquisitions and Joint Ventures Eimskip intends to grow both organically and through strategic accretive acquisitions to increase shareholder value Recent progress Acquisition of 90% share in Extraco in October 2016 Acquisition of 80% share in Mareco in January 2017 Cooperation
Slide 44: Extraco
EXTRACO Strengthens Eimskip’s position in worldwide reefer logistics A specialized forwarding company in Rotterdam, established in 1991 Acquisition of a 90% share in the company Customers are importers of chilled and frozen commodities in the Netherlands Strong financial performance Annual
Slide 45: Mareco
MARECO Strengthens Eimskip’s position in worldwide forwarding services A specialized reefer logistics company Established in 2002 Headquartered in Antwerp, Belgium: 22 employees An operation in Sao Paulo, Brazil: 4 employees Acquisition of a 80% share in the company A strong management t
Slide 46: Eimskip and Royal Arctic Line
EIMSKIP AND ROYAL ARCTIC LINE Cooperation agreement and building of container vessels in China In May 2016, Eimskip and Royal Arctic Line signed a letter of intent to form Built to the highest environmental standards and evaluate a potential cooperation regarding building of three container Co
Slide 47: Nor Lines
NOR LINES Eimskip is evaluating its next steps Eimskip signed an agreement to acquire the Norwegian shipping and logistics company Nor Lines in November 2016 The agreement was subject to the approval of the Norwegian Competition Authority (NCA) On 20 February NCA gave a notice of an objection
Slide 48: Revenue by Business Segment
REVENUE BY BUSINESS SEGMENT Adjusted for Extraco and Mareco 48
Slide 49: Geographical Split of Revenue
GEOGRAPHICAL SPLIT OF REVENUE Adjusted for Extraco and Mareco 49
Slide 50: Disclaimer
DISCLAIMER Information contained in this presentation is based on sources that Eimskipafélag Íslands hf. (“Eimskip“ or the ”Company“) considers reliable at each time. Its accuracy or completeness can however not be guaranteed. Copyright of information contained in this presentation is owned by Eimsk
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