Slide 1: Presentation of Q2 Results
PRESENTATION OF Q2 RESULTS Vilhelm Már Thorsteinsson, CEO
Slide 2: New Consolidated Headquarters
NEW CONSOLIDATED HEADQUARTERS
Slide 3: 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 KEY FIGURES 6M 202
Slide 4: Key Highlights for Q2 2020
KEY HIGHLIGHTS FOR Q2 2020 1 EBITDA performance of Q2 is better than management expectations at the start of the quarter specially considering the impact of COVID-19 2 Streamlining measures and integration projects resulting in lower cost • Salary cost down EUR 4m QoQ • Container system savings EUR
Slide 5: Economic Indicators
ECONOMIC INDICATORS Relevant lead indicators PAYMENT CARD TURNOVER GALLUP CONFIDENCE INDEX LANDED CATCH – FAROE ISLANDS Source: Central bank of Iceland Source: Gallup Iceland Source: www.vorn.fo LANDED CATCH – ICELAND TOTAL IMPORT – EXPORT ICELAND excl. fuel & gas FUEL PRICE DEVELOPMENT PR. WEEK Sou
Slide 6: Operating Activities
\ HAY eres ACTIVITIES, |
Slide 7: Vessel Newbuilding and Royal Arctic Line Co-operation
VESSEL NEWBUILDING AND ROYAL ARCTIC LINE CO-OPERATION Phase-in Vessel Sharing Agreement launched in June The new 2150 TEUs vessels • Dettifoss first scheduled voyage from Denmark on July 8th • Estimated delivery of Bruarfoss in early Q4 and in service later in the quarter • Net inflow from financing
Slide 8: Greenland Gaining Access to Eimskip's Trans-Atlantic Sailing System
GREENLAND GAINING ACCESS TO EIMSKIP‘S TRANS-ATLANTIC SAILING SYSTEM Opportunities arising for increased trade between Iceland and Greenland • Iceland’s geographical position important factor towards Greenland • Opportunities to increase trade between the two countries • Weekly sailings to Nuuk with
Slide 9: Volume Development in Liner Services
VOLUME DEVELOPMENT IN LINER SERVICES Container liner volume down 4.6% and reefer liner down 11.4% YoY in Q2 Q2 • Import to Iceland down by 6.4% YoY in line with expectations at beginning of the year despite COVID-19 • Gradually picked up towards the end of the quarter • Export from Iceland increased
Slide 10: Volume Development in Forwarding
VOLUME DEVELOPMENT IN FORWARDING Strong reefer forwarding during the quarter Q2 • Reefer forwarding volume up 3.9% from last year • Mainly driven by increase in outbound cargo handling which is higher margin volume than inbound cargo • Reefer cargo has been less affected by COVID-19 than dry cargo •
Slide 11: Financial Results
TITLE SLIDES HEADLINE HERE IN TWO TO THREE LINES Subtitles here in two to three lines when needed FINANCIAL RESULTS
Slide 12: Income Statement Q2
INCOME STATEMENT Q2 Profitability improves with realization of streamlining measures Q2 • Revenue decrease by 4.1% EUR thousand Q2 2020 Q2 2019 Change % • Volume decrease however, partly offset by higher forwarding prices Revenue 160,615 167,535 (6,920) (4.1%) • Decrease in BAF due to lower bunker p
Slide 13: Income Statement 6M
INCOME STATEMENT 6M The first six months affected by a slow start of the year 6M EUR thousand 6M 2020 6M 2019 Change % • Revenues decrease by 2.8% as a result of less volume, bunker effects and discontinued Revenue 322,285 331,523 (9,238) (2.8%) operation of ferry Herjólfur Expenses 296,946 302,472
Slide 14: Development and Nature of Expenses Q2
DEVELOPMENT AND NATURE OF EXPENSES Q2 Streamlining measures positively affecting salaries and admin expenses EXPENSE BRIDGE Q2 Q2 • In general, increase/decrease in 3rd party expenses is offset by higher/lower revenues e.g. in forwarding • Savings in liner services and lower bunker prices positively
Slide 15: EBITDA Bridge Q2
EBITDA BRIDGE Q2 Negative volume development affecting container liner performance but offset by streamlining measures and improved margins in reefer forwarding EBITDA BRIDGE BY BUSINESS ACTIVITY EBITDA BRIDGE BY OPERATING ITEMS 15
Slide 16: Results by Business Segments
RESULTS BY BUSINESS SEGMENTS Profitability increasing in the quarter Q2 AND 6M • Liner revenue affected by volume and EUR thousand Q2 2020 Q2 2019 Change % 6M 2020 6M 2019 Change % devaluation of ISK Liner Services: • Forwarding revenues increase despite lower Revenue 98,531 107,568 (9,037) (8.4%) 1
Slide 17: Balance Sheet
BALANCE SHEET Lease liabilities increasing the balance sheet but partially offset by delivery of sold vessels EUR thousand 30.6.2020 31.12.2019 Change % 6M Non-current assets 393,214 355,712 37,502 10.5% • Fixed assets increase with Dettifoss being Fixed assets 301,617 292,470 9,147 3.1% delivered t
Slide 18: Net Debt, Equity and Leverage Ratios
NET DEBT, EQUITY AND LEVERAGE RATIOS Equity ratio above long-term 40% target – leverage ratio above long-term target of 2-3x EBITDA due to recent investments NET DEBT AND EQUITY RATIO NET DEBT EBITDA RATIO EUR million * *2018 not including IFRS 16 effects 18
Slide 19: Development in Capex
DEVELOPMENT IN CAPEX Investments in 2020 primarily related to vessel investments – Dettifoss and Brúarfoss 6M • Maintenance CAPEX EUR 5.4m or slightly lower than budget and last year as management intentions due to COVID-19 • Approximately third of planned maintenance CAPEX, EUR 5.0m, were put on ho
Slide 20: Cash Flow
CASH FLOW Strong cash flow generation during the second quarter Q2 • Investment in Dettifoss finalized during the Million EUR Q2 2020 Q2 2019 6M 2020 6M 2019 quarter • Excess cash used to pay down revolver facility EBITDA 16.0 15.8 25.3 29.1 • Additional EUR 10m of revolving liquidity Working capita
Slide 21: Management Assessment of Performance and Status
MANAGEMENT ASSESSMENT OF PERFORMANCE AND STATUS PUBLISHED QUARTER CURRENT QUARTER NEAR TERM OUTLOOK • Overall acceptable results in a challenging • Export from Iceland has been strong and import on • Cost benefit of FTE reduction in 1H 2020 being environment level with last year realized in 2H and s
Slide 22: Thank You
THANK YOU 22
Slide 23: Appendix I
APPENDIX I 23
Slide 24: Operating Results by Quarter
OPERATING RESULTS BY QUARTER 24
Slide 25: EBITDA Bridge 6M
EBITDA BRIDGE 6M Slow first quarter affecting six-month YoY EBITDA EBITDA BRIDGE BY BUSINESS ACTIVITY EBITDA BRIDGE BY OPERATING ITEMS 25
Slide 26: Shareholders List
SHAREHOLDERS LIST 20.8.2020 Shareholder Country Shares % Samherji Holding ehf. Iceland 50,600,000 27.06% Lífeyrissjóður verslunarmanna Iceland 27,485,070 14.70% Gildi - lífeyrissjóður Iceland 25,116,139 13.43% Lífeyrissj.starfsm.rík. A-deild Iceland 12,750,000 6.82% Birta lífeyrissjóður Iceland 11,4
Slide 27: Other Matters
OTHER MATTERS SHAREHOLDERS • Eimskip’s market capitalization was EUR 149.1 million or ISK 24.3 billion at the end of trading on 27 August 2020. • Closing price at year end 2019 was ISK 189.5 per share and the average closing price for the year 2019 was ISK 183.9 per share. The closing price on 27 Au
Slide 28: 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 29: 29
29