Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q2 2022 Earnings Presentation
28 slides from Eimskipafelag Islands Hf's earnings presentation, August 2022
Slide 1: Presentation of Q2 2022 Results
PRESENTATION OF Q2 2022 RESULTS PRESENTATION OF Q1 2022 RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q2 Highlights
Q2 HIGHLIGHTS CONTINUED STRONG PERFORMANCE • Container liner performing well in the quarter despite substantial cost increases • High utilization on back of good volume, especially in import to Iceland and Trans- Atlantic services, while maintaining a balanced empty container stock • Export Iceland
Slide 3: Diverse Sustainability Projects
DIVERSE SUSTAINABILITY PROJECTS Leadership development supports the Company’s goal towards equal gender ratios in management roles INTERNATIONAL LEADERSHIP PROGRAM CODE OF CONDUCT Eimskip is proud of its International The Code of Conduct guides the Board of Leadership Program. The goal of the Direct
Slide 4: Operating Activities
ore 4 a) aan ACTIMITIES & EIMSKIP
Slide 5: Liner Volume
LINER VOLUME Temporarily shifting capacity from Norway to Trans-Atlantic trade lane over the summer proved to be a good trade-off LINER VOLUME DEVELOPMENT CHANGE BY TRADE LANES TRANS-ATLANTIC VOLUME DEVELOPMENT 5
Slide 6: Container Liner Analysis
CONTAINER LINER ANALYSIS Focus and improvements in container management keeping empty containers stock in balance despite high import volume VESSEL UTILIZATION NUMBER OF EMPTY CONTAINERS IN SUNDAHÖFN TERMINAL 6
Slide 7: Forwarding Volume
FORWARDING VOLUME Market conditions have resulted in lower share of reefer forwarding but capacity constraints with deep sea lines easing VOLUME SPLIT VOLUME DEVELOPMENT FIVE MAIN TRADELANES 6M 2022 Asia - Europe 21% Europe - Africa/MiddleEast 12% Europe - Asia 16% Intra Europe 8% Intra Asia 12% 7
Slide 8: Financial Results
» FINANCIAL RESUL & EIMSKIP
Slide 9: Income Statement
INCOME STATEMENT Strong financial results in Q2 driven by volume, utilization and healthy margins HIGHLIGHTS • Strong results in container liner driven by good utilization of the sailing EUR thousand Q2 2022 Q2 2021* Change % system combined with healthy margins • Generally strong volume, especially
Slide 10: Revenue Analysis
REVENUE ANALYSIS Strong revenue growth in the quarter and a balanced currency mix CURRENCY SPLIT OF REVENUE REVENUE DEVELOPMENT EUR million 10
Slide 11: Revenue Analysis
REVENUE ANALYSIS Geographic diversification has improved in recent years with around 60% of revenue originating in International operations GEOGRAPHICAL SPLIT OF REVENUE SHARE OF ICELAND RELATED REVENUE 11
Slide 12: Expense Analysis
EXPENSE ANALYSIS Global market conditions, commodity prices and general inflation affecting cost EXPENSE CATEGORY AND CURRENCY SPLIT EXPENSE DEVELOPMENT EUR million 12 *3rd party expenses are mainly variable expenses charged with a margin to customers with corresponding change in revenue **Other ope
Slide 13: Expense Analysis
EXPENSE ANALYSIS Third party and bunker expenses main drivers behind cost increases EXPENSE BRIDGE SALARY BRIDGE EUR million EUR million 13
Slide 14: EBITDA Analysis
EBITDA ANALYSIS EBITDA results mainly driven by container liner on back of volume, utilization and margin development EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY EUR million EUR million 14 *Q2 2021 adjusted for settlement with the Icelandic Competition Authority (ICA) in the amount of EUR
Slide 15: Cash Flow
CASH FLOW Continued strong cash flow from operation and substantial distribution to shareholders in the quarter HIGHLIGHTS • Cash flow from operations is EUR 29.1m in the quarter and increases Million EUR Q2 2022 Q2 2021 Change by EUR 18.2m YoY EBITDA 44.8 29.7 15.0 • Maintenance CAPEX amounted to E
Slide 16: Maintenance CAPEX & Investments
MAINTENANCE CAPEX & INVESTMENTS
Slide 17: Development in Maintenance CAPEX & New Investment
DEVELOPMENT IN MAINTENANCE CAPEX & NEW INVESTMENT Maintenance CAPEX and planned new investments on track MAINTENANCE CAPEX HIGHLIGHTS EUR million • Maintenance CAPEX in 1H amounts to EUR 8.7m and in line with plan • Sustainable maintenance CAPEX level, given current operation and asset portfolio, is
Slide 18: Outlook
OUTLOOK • Overall, a strong start of the third quarter and generally a positive outlook • Container and reefer liner systems are performing well and volume remains on a good level • Increased tourism and high economic activity in Iceland supporting continued strong import • Export Iceland below LY b
Slide 19: Thank You
THANK YOU
Slide 20: Appendix
APPENDIX
Slide 21: 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 22: Balance Sheet
BALANCE SHEET Healthy balance sheet and leverage ratio below the long-term target of 2-3x HIGHLIGHTS EUR thousand 30.06.2022 31.12.2021 Change % • Working capital items increasing due to seasonality and increasing turnover Non-current assets 421,005 435,719 (14,714) (3.4%) Fixed assets 285,994 291,7
Slide 23: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Revenue 283,115 239,684 254,748 236,607 211,134 180,228 Expenses 238,362 209,298 223,269 199,831 191,639 163,919 Settlement with ICA - - - - 10,219 0 EBITDA 44,753 30,386 31,479 36,776 19,495 16,309 EB
Slide 24: Segment Analysis
SEGMENT ANALYSIS Good performance of both business segments LINER FORWARDING EUR thousand Q2 2022 Q2 2021 Change % 6M 2022 6M 2021 Change % EUR thousand Q2 2022 Q2 2021 Change % 6M 2022 6M 2021 Change % Revenue 190,556 132,741 57,815 43.6% 347,041 237,773 109,268 46.0% Revenue 147,260 94,069 53,191
Slide 25: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Lease liabilities mainly consist of chartered vessels and leased land IFRS 16 LEASE LIABILITIES ANALYSIS HIGHLIGHTS • Lease payments reducing the liability during the Lease liabilities EUR million period while no material new leases • IFRS 16 effect on EBITDA in Q2 2022 a
Slide 26: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 17.8.2022 EUR million Shareholder Shares % Samherji Holding ehf. 56,748,532 32.79% Gildi - lífeyrissjóður 21,280,269 12.30% Lífeyrissjóður verzlunarmanna 21,167,406 12.23% Birta lífeyrissjóður 8,105,035 4.68% Stapi lífeyrissjóður 7,222,7
Slide 27: 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 E
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Eimskipafélag Íslands hf. — Q2 2022 Earnings Presentation on 6ix