Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q3 2023 Earnings Presentation
29 slides from Eimskipafelag Islands Hf's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Results Presentation
Q3 2023 RESULTS PRESENTATION OF 7 NOVEMBER 2023 Q1 2022 RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q3 Highlights
Hugsa hvort og hvernig eigi að Q3 Q2 HIGHLIGHTS HIGHLIGHTS nefna SKE í nokkrum setningum Ekki skriflega heldur munnlega í kynningu GOOD RESULTS IN A CHANGED SOLID RESULTS BASED ON MARKETFOUNDATION STRONG LANDSCAPE • • Overall a good quarter with most business units performing well, despite A good qu
Slide 3: Empowering Success Through Continuous Learning
EMPOWERING SUCCESS THROUGH CONTINUOUS LEARNING Cultivating the Social Aspect of Sustainability EIMSKIP ACADEMY CODE OF CONDUCT WORKPLACE SAFETY Eimskip has launched the new digital learning Eimskip Code of Conduct is a reflection of the One of the core aspects of the Company culture is platform Eims
Slide 4: Eimskip's Strong Heritage in Transportation of Food
EIMSKIP’S STRONG HERITAGE IN TRANSPORTATION OF FOOD A niche focus on transportation of refrigerated goods offers greater resilience against economic cycles LINER VOLUME SPLIT BETWEEN CATEGORIES GREEN HOUSE GAS CONVERSION FACTORS PER TONNE PER KM 100% kgcO₂e 90% 1.02 80% 70% 60% Container shipping is
Slide 5: Operating Activities
FINANCIAL RESULTS OPERATING ACTIVITES
Slide 6: Liner Volume
LINER VOLUME Sailing system disruptions adversely affecting Iceland Export while Trans-Atlantic volume saw seasonal decline, contrary to last year LINER VOLUME DEVELOPMENT CHANGE BY TRADE LANES Volume (Teus ‘000) Volume (Teus '000) -7.2% (0.1) (0.8) 55.0 (0.3) (0.1) 53.6 54.2 54.7 51.5 50.6 51.7 50.
Slide 7: Trans-Atlantic Analysis
TRANS-ATLANTIC ANALYSIS Contraction in the Trans-Atlantic market, combined with traditional pre-covid seasonality, causing volume to decrease TRANS-ATLANTIC VOLUME DEVELOPMENT DREWRY WORLD CONTAINER INDEX DEVELOPMENT Volume (Teus ‘000) US$/40ft container 12 -23.6% 12,000 10 10,000 8 8,000 6 6,000 4
Slide 8: Forwarding Volume
FORWARDING VOLUME Forwarding volume on a stable level and leveraging on specialty in reefer logistics VOLUME SPLIT VOLUME DEVELOPMENT Volume (Teus ‘000) 3% 4% 13% 16% 0.8% Q3 2023 47% Q3 2022 49% 37% 31% 48.5 46.4 45.1 41.8 42.7 42.0 42.4 40.8 39.8 31% 31% Q3 2023 Q3 2022 69% 69% Q3 2021 Q4 2021 Q1
Slide 9: Financial Results
FINANCIAL RESULTS
Slide 10: Income Statement
INCOME STATEMENT Good results in a market that has normalized after extraordinary period HIGHLIGHTS EUR thousand Q3 2023 Q3 2022 Change % • Revenue amounting to EUR 202.0m and operating expenses amounting to EUR 167.5m, both decreasing by 31% from previous year Revenue 201,967 292,173 (90,206) (30.9
Slide 11: Revenue Analysis
REVENUE ANALYSIS Share of Iceland-related revenue increases while total revenue decreases mainly due to a sharp decline in global freight rates GEOGRAPHICAL SPLIT REVENUE DEVELOPMENT EURm -30.9% 283.1 292.2 6% 4% 6% 254.7 255.7 11% 236.6 239.7 214.6 209.5 19% 202.0 43% Q3 2023 Q3 2022 57% 25% 6% 8%
Slide 12: Expense Analysis
EXPENSE ANALYSIS Decrease in operating expenses mainly driven by drop in global freight rates from previous year EXPENSE CATEGORIES EXPENSE BRIDGE EURm 7% 4% (62.4) 14% (7.7) (1.1) 21% (5.6) 1.7 Q3 2023 10% Q3 2022 54% 63% 242.6 9% 9% 9% 167.5 Q3 2022 3rd party Bunker Liner & Salaries and Admin and
Slide 13: EBITDA Analysis
EBITDA ANALYSIS Good EBITDA result and a strong margin despite anticipated decrease from a record quarter last year EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY EURm EURm -30.4% 49.6 44.8 (10.2) (2.2) (2.5) 38.4 (0.5) 0.3 36.8 34.3 34.5 31.5 31.8 30.4 49.6 34.5 Q3 2021 Q4 2021 Q1 2022 Q2 20
Slide 14: Cash Flow
CASH FLOW Solid cash flow from operations and strong liquidity HIGHLIGHTS • Cash flow from operations amounted to EUR 21.1m in the quarter, a decrease of EUR million Q3 2023 Q3 2022 Change % EUR 12.9m from same period last year EBITDA 34.5 49.6 (15.1) -30.4% • Contractual repayments of debt and leas
Slide 15: Development in Maintenance CAPEX & New Investment
DEVELOPMENT IN MAINTENANCE CAPEX & NEW INVESTMENT Maintenance CAPEX and new investment on track and in line with plan MAINTENANCE CAPEX NEW INVESTMENT EURm EURm 39.8 26-29 24.2 21.7 12.9 13.1 12.3 12-15 9.7 2.3 2020 2021 2022 2023 9M 2023 Plan 2020 2021 2022 2023 9M 2023 Plan 15
Slide 16: Outlook
OUTLOOK GENERALLY STABLE OUTLOOK FOR COMING MONTHS • Generally good outlook in Iceland for the coming months, with imports that remain on a solid level and continued strong export anticipated in the coming weeks with good fisheries, steady salmon production and a new and emerging business in exports
Slide 17: Thank You
THANK YOU
Slide 18: Appendix
APPENDIX
Slide 19: This is Eimskip
THIS IS EIMSKIP Eimskip is a leading transportation company in the North-Atlantic providing container and reefer liner services with connections to international markets and is specialized in worldwide freight forwarding services with a focus on frozen and chilled commodities ABOUT SUSTAINABILITY KP
Slide 20: Container Liner Analysis
CONTAINER LINER ANALYSIS Utilization in the quarter hit by operational challenges which caused disruptions to the system and affected balance VESSEL UTILIZATION 91% 91% 87% 87% 87% 87% 85% 84% 83% 64% 62% 61% 60% 59% 60% 59% 58% 57% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3
Slide 21: Segment Analysis
SEGMENT ANALYSIS Sound performance of both business segments LINER FORWARDING EUR thousand Q3 2023 Q3 2022 Change % 9M 2023 9M 2022 Change % EUR thousand Q3 2023 Q3 2022 Change % 9M 2023 9M 2022 Change % Revenue 147,027 180,353 (33,326) (18.5%) 455,216 506,110 (50,894) (10.1%) Revenue 66,557 97,885
Slide 22: EBIT Analysis
EBIT ANALYSIS Solid EBIT result despite decrease from an extraordinary period in the previous year EBIT DEVELOPMENT EBIT BRIDGE BY BUSINESS ACTIVITY EURm EURm -44.6% 34.1 29.8 (10.7) 23.8 22.5 (2.2) 19.4 18.9 (2.5) (0.2) 0.4 17.5 15.1 15.8 34.1 18.9 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1
Slide 23: Income Statement and Cash Flow 9M 2023
INCOME STATEMENT AND CASH FLOW 9M 2023 EUR thousand 9M 2023 9M 2022 Change % EUR million 9M 2023 9M 2022 Change % EBITDA 100.7 124.7 (24.1) -19.3% Revenue 626,052 814,972 (188,920) (23.2%) Working capital changes & other adjustments (5.7) (19.1) 13.4 70.2% Expenses 525,391 690,255 (164,864) (23.9%)
Slide 24: Balance Sheet
BALANCE SHEET Strong financial position and leverage remains below long-term target HIGHLIGHTS EUR thousand 30.09.2023 31.12.2022 Change % • Fixed assets increase moderately by EUR 10.7m while lease liabilities decrease by EUR 4.7m Non-current assets 446,740 434,075 12,665 2.9% • Increase in Other n
Slide 25: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Lease liabilities mainly consist of chartered vessels and leased buildings and land LEASE LIABILITIES ANALYSIS LEASE LIABILITIES BRIDGE EURm Lease liabilities by categories IFRS 16 – Impact on EBITDA (3.2) (0.0) (3.5) (0.2) 13% 6% 19% 36% 3% Q3 2023 Q3 2023 104.2 99.5 35%
Slide 26: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) Q3 2023 Q2 2023 Q1 2023 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Revenue 201,967 209,516 214,569 1,070,626 255,654 292,173 283,115 239,684 882,717 254,748 236,607 211,134 180,228 Expenses 167,469 175,191 182,731 907,
Slide 27: Shareholders
SHAREHOLDERS PAYMENTS TO SHAREHOLDERS* SHAREHOLDERS 01.11.2023 EURm Shareholder Shares % 40 1 Seley ehf. 55,589,385 33.12% 35 2 Gildi - lífeyrissjóður 21,237,427 12.65% 30 3 Lífeyrissjóður verzlunarmanna 20,515,040 12.22% 25 4 Birta lífeyrissjóður 8,054,481 4.80% 20 5 Stefnir - Innlend hlutabréf hs.
Slide 28: Disclaimer
_—_— DISCLAIMER Information contained in this presentation is based on sources that Eimskipafélag [slands 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
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Eimskipafélag Íslands hf. — Q3 2023 Earnings Presentation on 6ix