Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q4 and FY2022 Earnings Presentation
34 slides from Eimskipafelag Islands Hf's earnings presentation, Feb 14, 2023
Slide 1: Presentation of Q4 and FY 2022 Results
PRESENTATION OF Q4 AND FY 2022 RESULTS 14 February 2023 Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q4 Highlights
Q4 HIGHLIGHTS GOOD FINANCIAL RESULTS IN Q4 DESPITE SWIFT CHANGES IN INTERNATIONAL SHIPPING AND TRANSPORTATION MARKETS ALONG WITH GROWING ECONOMIC UNCERTAINTY • EBITDA in Q4 driven by good performance of container liner • Westbound Trans-Atlantic the only major international trade lane where freight
Slide 3: 2022 Highlights
2022 HIGHLIGHTS STRONG FINANCIAL RESULTS DRIVEN BY EMPHASIS ON EXCELLENT CUSTOMER SERVICE, OPERATIONAL FOCUS AND FAVORABLE MARKET CONDITIONS FOR THE GREATER PART OF THE YEAR • Most trade lanes in container liner performed well in 2022 on back of good volume and successful capacity management • Impor
Slide 4: Ambitious Sustainability Projects in 2022
AMBITIOUS SUSTAINABILITY PROJECTS IN 2022 INVESTMENTS IN ELECTRIC TRUCKS GATHERING ESG DATA FROM 17 COUNTRIES PARTNERSHIP WITH YOUTH UNIT IN DENMARK SHORE CONNECTIONS FOR VESSELS LEADERSHIP PROGRAM & SUCCESSION PLANNING ALL CRANES IN SUNDAHÖFN ELECTRIC SUPPORTING INNOVATION - RUNNING TIDE PRODUCT DE
Slide 5: Positive Development in Sustainability KPI
POSITIVE DEVELOPMENT IN SUSTAINABILITY KPI Full environmental statement for 2022 is available at the Company’s website GHG EMISSIONS PER TRANSPORTED TON* 100% 100% 100% 89% 89% 89% 90% 84% 82% CO2 Very positive development in Eimskip’s 80% 77% Sustainability KPI, GHG emission per transported 70% ton
Slide 6: Operating Activities
OPERATING ACTIVITIES
Slide 7: Eimskip's Home Market
EIMSKIP’S HOME MARKET The only Pan-Arctic ocean carrier N I C H E M A R K E T A R EA S R I C H I N N AT U R A L R ES O U R C ES D R I V E N BY I M P O R T A N D E X P O R T 7
Slide 8: Liner Volume
LINER VOLUME Robust volume growth in import to Iceland and Trans-Atlantic while export Iceland decreased in Q4 compared to strong Q4 2021 LINER VOLUME DEVELOPMENT CHANGE BY TRADE LANES TRANS-ATLANTIC VOLUME DEVELOPMENT 8
Slide 9: Container Liner Analysis
CONTAINER LINER ANALYSIS Good utilization given traditional seasonality VESSEL UTILIZATION 9
Slide 10: Forwarding Volume
FORWARDING VOLUME Stable volume throughout the year with some signs of an uptick in Q4 as international shipping bottlenecks ease up VOLUME SPLIT VOLUME DEVELOPMENT 10
Slide 11: Financial Results
FINANCIAL RESULTS
Slide 12: Income Statement
INCOME STATEMENT Strong focus on customer service and operations combined with favorable market conditions contribute to record results in 2022 HIGHLIGHTS Q4 • Generally good results in Q4 with strong growth YoY in liner services EUR thousand Q4 2022 Q4 2021 Change % 2022 2021* Change % mainly drive
Slide 13: Revenue Analysis
REVENUE ANALYSIS Liner revenue increases YoY while forwarding revenue decreases due to declining market rates with marginal change in total revenue GEOGRAPHICAL SPLIT OF REVENUE REVENUE DEVELOPMENT EUR million 13
Slide 14: Expense Analysis
EXPENSE ANALYSIS Total cost down YoY due to decrease in cost of 3rd party services, partly offset by increase in oil prices and operating expenses EXPENSE CATEGORIES EXPENSE BRIDGE EUR million 14 *3rd party expenses is mainly variable cost for services that Eimskip purchases on behalf of its custome
Slide 15: EBITDA Analysis Q4
EBITDA ANALYSIS Q4 Increase in EBITDA driven by container liner on back of good volume and growth in Trans-Atlantic services EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY EUR million EUR million 15 *Q2 2021 adjusted for settlement with the Icelandic Competition Authority (ICA) in the amount
Slide 16: EBITDA and EBIT Analysis FY 2022
EBITDA AND EBIT ANALYSIS FY 2022 All segments doing better than in 2021 with container liner being the main driver EBITDA BRIDGE BY BUSINESS ACTIVITY EBIT BRIDGE BY BUSINESS ACTIVITY EUR million EUR million 16 *Q2 2021 adjusted for settlement with the Icelandic Competition Authority (ICA) in the amo
Slide 17: Balance Sheet
BALANCE SHEET Strong financial position and leverage currently below long-target HIGHLIGHTS • Liabilities decrease by EUR 15.4m, mainly due to amortization of lease liabilities EUR thousand 31.12.2022 31.12.2021 Change % and repayment of interest-bearing debt Non-current assets 434,075 435,719 (1,64
Slide 18: Cash Flow
CASH FLOW Substantial working capital release in Q4 due to lower market rates in international forwarding HIGHLIGHTS Q4 EUR million Q4 2022 Q4 2021 Change 2022 2021* Change • Cash flow from operations is EUR 43.0m in the quarter, an increase of EUR 17.0m from same period last year, mainly due to dec
Slide 19: Maintenance CAPEX & Investments
MAINTENANCE CAPEX & INVESTMENTS
Slide 20: Development in Maintenance CAPEX & New Investment
DEVELOPMENT IN MAINTENANCE CAPEX & NEW INVESTMENT Maintenance CAPEX and new investments 2022 in the higher end of the planned range MAINTENANCE CAPEX HIGHLIGHTS EUR million • Maintenance CAPEX in 2022 amounting to EUR 24.2m compared to a plan of EUR 22m • EUR 2.2m are related to delays in planned 20
Slide 21: Three-Year Maintenance CAPEX and Investment Plan
THREE-YEAR MAINTENANCE CAPEX AND INVESTMENT PLAN Increase from the previous plan can be attributed to general inflation and cost increases as well as increased activity MAINTENANCE CAPEX HIGHLIGHTS EUR million • The new maintenance CAPEX plan assumes an annual CAPEX in the range of EUR 26-29m compar
Slide 22: Outlook
E& EIMSKIP
Slide 23: Dividend and Share Capital Reduction Proposals to the AGM
DIVIDEND AND SHARE CAPITAL REDUCTION PROPOSALS TO THE AGM Strong cash position and capital ratios at year-end support proposed distribution and share capital reduction DIVIDEND PROPOSAL 2023 SHARE CAPITAL REDUCTION PROPOSAL 2023 • The Board of Directors will propose to the AGM • The Board of Directo
Slide 24: Analyst Consensus
ANALYST CONSENSUS New approach to service analysts and other capital markets participants CURRENT APPROACH NEW APPROACH • The Company currently practices disclosing an estimate of its quarterly • The Company will as of Q1 2023, change its approach to disclosing results before the scheduled publicati
Slide 25: Outlook
OUTLOOK START OF 2023 IN LINE WITH EXPECTATIONS • Container liner performing well at the start of the year, given the traditional seasonality • Import Iceland volume remains good while Export Iceland volume has been on a lower level than expected due to lower production of some export commodities •
Slide 26: Thank You
THANK YOU
Slide 27: Appendix
APPENDIX
Slide 28: 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 29: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Revenue 1,070,626 255,654 292,173 283,115 239,684 882,717 254,748 236,607 211,134 180,228 Expenses 907,540 217,285 242,595 238,362 209,298 778,658 223,269 199,831 191,639 163,
Slide 30: Segment Analysis
SEGMENT ANALYSIS Strong performance of both business segments LINER FORWARDING EUR thousand Q4 2022 Q4 2021 Change % 2022 2021 Change % EUR thousand Q4 2022 Q4 2021 Change % 2022 2021 Change % Revenue 165,295 133,081 32,214 24.2% 671,405 507,696 163,709 32.2% Revenue 104,630 86,750 17,880 20.6% 447,
Slide 31: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Lease liabilities mainly consist of chartered vessels and leased buildings and land IFRS 16 LEASE LIABILITIES ANALYSIS HIGHLIGHTS Lease liabilities • Net decrease of lease liabilities of EUR 15.8m in the quarter EUR million • IFRS 16 effect on EBITDA in 2022 amounts to EU
Slide 32: Shareholders Information
SHAREHOLDERS INFORMATION Number of shareholders increased by 133 over the course of 2022 PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 8.2.2023 EUR million Shareholder Shares % 1 Seley ehf. 56,748,532 32.79% 2 Gildi - lífeyrissjóður 21,680,269 12.53% 3 Lífeyrissjóður verzlunarmanna 21,167,406 12.23% 4 Birta
Slide 33: 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. (Eimskip) — Q4 and FY2022 Earnings Presentation on 6ix