Slide 1: Presentation of Q2 2021 Results
PRESENTATION OF Q2 2021 RESULTS Vilhelm Már Thorsteinsson, CEO
Slide 2: 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 focus on frozen and chilled commodities ABOUT SUSTAINABILITY KPI’
Slide 3: Q2 Strong Operational Results
Q2 STRONG OPERATIONAL RESULTS • Container liner performing well in the quarter • Leveraging on revenue management, more favorable volume mix and conditions in global transportation markets • Overall good volume with substantial growth in Trans-Atlantic services benefitting e.g. from global capacity
Slide 4: Current Trends in Global Container Shipping Markets
CURRENT TRENDS IN GLOBAL CONTAINER SHIPPING MARKETS ElbFeeder Inc. realizing the benefit of improved charter rates • International freight rates continue to increase and are currently at a record high WORLD CONTAINER INDEX SHANGHAI CONTAINERISED FREIGHT INDEX level • This situation is expected to la
Slide 5: Sustainability KPI's – QoQ Development
SUSTAINABILITY KPI‘S – QoQ DEVELOPMENT Continued progress towards less environmental impact GHG EMISSIONS PER TRANSPORTED TON SHARE OF SORTED WASTE ENERGY FROM ELECTRICITY 5,000,000 15% Q2 2021 82% 4,000,000 CO2 3,000,000 kWh Reduced GHG emissions per unit of 2,000,000 transported cargo* Q2 2020 68%
Slide 6: Financial Results
FINANCIAL RESULTS
Slide 7: Income Statement
INCOME STATEMENT Strong operating performance in Q2 adjusted for settlement with ICA Q2 EUR thousand Q2 2021* Q2 2020 Change % • Strong operational performance exceeding management expectations • Revenue increase by 31% Revenue 211,134 160,615 50,519 31.5% • Significant price increases from 3rd part
Slide 8: Geographical Split of Revenue
GEOGRAPHICAL SPLIT OF REVENUE Share of Iceland related revenue decreasing REVENUE SPLIT REVENUE SHARE OF ICELAND RELATED BUSINESS 8
Slide 9: Expense Bridge
EXPENSE BRIDGE International freight rates increase resulting in significantly higher 3rd party expenses EXPENSE BRIDGE Q2 • Significant price increases from 3rd party transportation suppliers, from which Eimskip purchases on behalf of its customers, due to COVID related global disruptions • Largest
Slide 10: EBITDA Bridge
EBITDA BRIDGE Strong performance of the container liner services compared to low results same quarter last year BY BUSINESS ACTIVITY CONTAINER LINER SYSTEM • Volume effect due to increased economic activities in main liner business areas, conditions in global transportation markets and focus on busi
Slide 11: EBIT Bridge
EBIT BRIDGE Strong performance of the container liner services compared to low results same quarter last year BY BUSINESS ACTIVITY CONTAINER LINER SYSTEM • Network cost affected by increased depreciation due to new vessels Dettifoss and Bruarfoss and higher charter leases increasing IFRS16 depreciat
Slide 12: Income Statement and Bridge Analysis 6M
INCOME STATEMENT AND BRIDGE ANALYSIS 6M Operating performance adjusted for settlement with ICA exceeding management expectations EBITDA BY BUSINESS ACTIVITY EUR thousand 6M 2021* 6M 2020 Change % Revenue 391,362 322,285 69,077 21.4% Expenses 345,339 296,946 48,393 16.3% Salary and related expenses 5
Slide 13: Segments Analysis
SEGMENTS ANALYSIS
Slide 14: Development in Liner Services
DEVELOPMENT IN LINER SERVICES Strong performance on back of revenue management, volume development and supported by favorable market conditions EUR thousand Q2 2021 Q2 2020 Change % 6M 2021 6M 2020 Change % PERFORMANCE Q2 • Strong focus for the past quarters on improving performance in Revenue 132,7
Slide 15: Liner Volume Bridge
LINER VOLUME BRIDGE Strong volume growth in Trans-Atlantic services Q2 6M Volume (Tons ‘000) Volume (Tons ‘000) 15
Slide 16: Container Liner Analysis
CONTAINER LINER ANALYSIS Strong vessel utilization and number of empty containers in Sundahöfn terminal shows good balance VESSEL UTILIZATION NUMBER OF EMPTY CONTAINERS IN SUNDAHÖFN TERMINAL 16
Slide 17: Development in Forwarding Services
DEVELOPMENT IN FORWARDING SERVICES Strong performance in a market characterized by very high global prices and capacity constraints EUR thousand Q2 2021 Q2 2020 Change % 6M 2021 6M 2020 Change % PERFORMANCE Q2 • Challenging market conditions with capacity constraints and equipment Revenue 94,069 69,
Slide 18: Forwarding Volume
FORWARDING VOLUME Share of reefer volume decreasing QoQ due to market conditions VOLUME SPLIT Q2 VOLUME BRIDGE Q2 18
Slide 19: Cashflow and Balance Sheet
CASHFLOW AND BALANCE SHEET
Slide 20: Cash Flow
CASH FLOW Meaningful distribution to shareholders Q2 • Considerable increase in activity and revenue lead to seasonal high Million EUR Q2 2021 Q2 2020 Change 6M 2021 6M 2020 Change outstanding receivables and negative cash flow from working capital EBITDA reported 19.5 16.0 3.5 35.8 25.3 10.5 • Posi
Slide 21: Development in CAPEX
DEVELOPMENT IN CAPEX Low maintenance CAPEX in the first six months but full year expected to be on budget 6M • Maintenance CAPEX EUR 4.9m compared to EUR 5.7m in 6M 2020 • Longer delivery times of ordered equipment from suppliers • Full year maintenance CAPEX estimated to be on budget or approx. EUR
Slide 22: Balance Sheet
BALANCE SHEET Affected by changes in working capital items due to higher activity and seasonality ASSETS EQUITY AND LIABILITIES EUR thousand 30.06.2021 31.12.2020 Change % EUR thousand 30.06.2021 31.12.2020 Change % Non-current assets 394,399 400,433 (6,034) (1.5%) Equity 225,669 230,657 (4,988) (2.
Slide 23: Outlook
Sa ~ OUTLOOK
Slide 24: Outlook
OUTLOOK HIGHLIGHTS OF CURRENT QUARTER OUTLOOK AND UPDATED GUIDANCE • Strong results in July and outlook for August is promising although • Optimistic about the volume and margins for the remainder of the year slower than previous months due to seasonality • Current situation in global transportation
Slide 25: Thank You
THANK YOU 25
Slide 26: Appendix I
APPENDIX I 26
Slide 27: Results by Quarter as Reported
RESULTS BY QUARTER AS REPORTED EUR thousand OPERATING RESULTS Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Revenue 211,134 180,228 175,653 170,378 160,615 Expenses 191,639 163,919 160,724 148,968 144,614 Settlement with ICA 10,219 0 0 0 0 EBITDA 19,495 16,309 14,929 21,410 16,001 EBIT 7,252 4,512 3,201 1
Slide 28: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Higher charter rates and land lease agreements affecting lease liabilities during the year IFRS 16 LEASE LIABILITIES BRIDGE ANALYSIS 6M • New and renewed long-term land lease agreements Lease liabilities account for EUR 5.3m of lease liability increase • Effects of land l
Slide 29: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 18.8.2021 EUR ‘000 Shareholder Country Shares % Samherji Holding ehf. Iceland 59,953,585 34.22% Gildi - lífeyrissjóður Iceland 26,530,490 15.14% Lífeyrissjóður verslunarmanna Iceland 24,924,181 14.23% Stapi lífeyrissjóður Iceland 9,485,2
Slide 30: 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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