Slide 1: Core Operation Improving: Presentation of Q1 2019 Results
CORE OPERATION IMPROVING PRESENTATION OF Q1 2019 RESULTS Vilhelm Már Þorsteinsson
Slide 2: This is Eimskip
THIS IS EIMSKIP Eimskip is a leading transportation company in the North Atlantic with connections to international markets and is specialized in worldwide freight forwarding services, with the vision of providing excellence in transportation solutions and services ABOUT KEY FIGURES Q1 2019 63 OFFIC
Slide 3: Key Highlights for Q1
KEY HIGHLIGHTS FOR Q1 IMPROVED OPERATING RESULTS IN NORWAY STREAMLINING MEASURES AND ORG. CHANGES STARTING TO PAY OFF INCREASED ACTIVITY AND VOLUME IN THE TRANS-ATLANTIC SERVICES POSITIVE DEVELOPMENT IN REEFER FORWARDING OPERATIONS IN ICELAND GOING WELL 3
Slide 4: Operating Activities
OPERATING ACTIVITIES 4
Slide 5: Volume in Liner Services
VOLUME IN LINER SERVICES Container Liner volume up 9.0% but Reefer Liner services down 23.0% Tons '000 3.000 2.500 Strong growth in container liner volume in Q1 2.081 1.928 1.998 2.000 1.821 1.500 4.6% Reefer liner volume in Q1 1.000 2019 was down as was expected – two fewer 500 vessels in opera
Slide 6: Geographical Split of Liner Volume
GEOGRAPHICAL SPLIT OF LINER VOLUME Increase in container liner services and Trans-Atlantic | Decrease in Norway VOLUME SPLIT 6
Slide 7: Volume in Forwarding Services
VOLUME IN FORWARDING SERVICES Reefer forwarding volume up 8.7% but dry forwarding volume down Good growth in reefer forwarding volume in Q1 Discontinued client contract in China explains drop in dry forwarding volume but has a limited effect on results 7
Slide 8: Category Split of Forwarding Volume
CATEGORY SPLIT OF FORWARDING VOLUME Dry cargo contract in China discontinued | Increased share of reefer cargo VOLUME SPLIT 8
Slide 9: Eimskip Is Already Operating in Low SOx Zones in Europe and North America
EIMSKIP IS ALREADY OPERATING IN LOW SOx ZONES IN EUROPE AND NORTH AMERICA BLUE AREA IS 0,1% SOx FROM 1.1.2015 WHITE AREA IS 3,5% SOx UNTIL 1.1.2020 AND 0,5% THERE AFTER 14
Slide 10: Fuel Price Development
FUEL PRICE DEVELOPMENT Average spread between gas oil and heavy oil has been approx. USD 200 USD/MT Approx. 53% of total fuel consumption of the vessel fleet is gas oil and 47% heavy fuel oil From 1.1.2020 it is estimated that share of gas oil will increase to approx. 75% given comparable sailin
Slide 11: Cooperation with Royal Arctic Line (RAL)
COOPERTION WITH ROYAL ARCTIC LINE (RAL) Eimskips’ two new vessels will replace two almost twenty five years old less efficient vessels Vessel sharing agreement between Eimskip and RAL approved by the ICA in April this year Three new 2,150 TEU container vessels (2 x Eimskip & 1 x RAL) expected in
Slide 12: Financial Results
FINANCIAL RESULTS 30
Slide 13: Income Statement
INCOME STATEMENT Operational improvements in Q1 Revenue growth of EUR 8.5 million or 5.4% EBITDA EUR 10.6 million excluding IFRS 16 an increase of EUR 3.4 million Considerable increase in EBIT or EUR 2.8 million One-off tax expense amounting EUR 3.4 million following a ruling of Internal Rev
Slide 14: Results by Business Segments
RESULTS BY BUSINESS SEGMENTS Improvements in both Liner and Forwarding Services 14
Slide 15: Geographical Split of Revenue
GEOGRAPHICAL SPLIT OF REVENUE Increase in Europe and Faroe Islands REVENUE SPLIT 15
Slide 16: Split of Total Operating Expenses
SPLIT OF TOTAL OPERATING EXPENSES Almost half of operating expenses is volume driven COST SPLIT Cost development in global transportation markets affects cost of 3rd party logistics services Other expenses include e.g. fuel expenses, operational cost of vessels and equipment, IT and general oper
Slide 17: EBITDA Bridge
EBITDA BRIDGE Best first quarter EBITDA since 2009 17
Slide 18: Balance Sheet
BALANCE SHEET Balance sheet affected by new accounting standard IFRS 16 EUR thousand 31.3.2019 31.12.2018 Change % Non-current assets 366,833 335,172 31,661 9.4% Fixed assets 314,156 313,765 391 0.1% Approx. EUR 34 million increase in assets and Right-of-use assets 33,612 0 33,612 - liabilities du
Slide 19: Financial Ratios from 2016 to 2019
FINANCIAL RATIOS FROM 2016 TO 2019 Excluding IFRS 16, leverage ratio decreases from year-end 2018 NET DEBT / EBITDA NET DEBT AND EQUITY RATIO EUR million 175 100% Net debt Equity ratio 90% 150 80% 125 70% 60% 100 50% 75 40% 50 30% 20% 25 10% 41.6 102.8 137.7 167.9 134.3 0 0% 2016 2017 2018 3M 2019 I
Slide 20: Cash Flow Development
CASH FLOW DEVELOPMENT Substantial increase in cashflow before debt service Million EUR Q1 2019 Q1 2018 Positive improvement in cash generation between EBITDA 15.5 7.3 periods Working capital changes & other 3.5 (5.6) Taxes (0.5) (0.3) Repayment and interest of lease liabilities (4.7) 0.0 Managem
Slide 21: Operating CAPEX and Investments
OPERATING CAPEX AND INVESTMENTS A decrease in CAPEX between periods but investments will be heavy in the second half of the year CAPEX for Q1 2019 EUR 8.6 million thereof maintenance CAPEX EUR 3.7 million Substantial investments in long term assets in 2019 Investment budget EUR 57.5 million
Slide 22: Summary & Guidance
SUMMARY & GUIDANCE 1 STREAMLINING AND INTIGRATION MEASURES NOT FULLY MATERIALIZED 2 OPPORTUNITIES ASSOCIATED WITH COOPERATION WITH ROYAL ARCTIC LINE 3 UNCERTAINTY IN EXTERNAL ENVIRONMENT E.G. ICELANDIC ECONOMY AND TRADE TENSION 4 CONTINUED FOCUS ON OPERATIONAL EFFICIENCY TO IMPROVE CORE OPERATION 5
Slide 23: Thank You
THANK YOU 23
Slide 24: 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
Slide 25: Appendix
APPENDIX APPENDIX 25
Slide 26: China Forwarders Freight Index
CHINA FORWARDERS FREIGHT INDEX Average price increased by 10% between Q1 2018 and Q1 2019 +10% 11
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