Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q3 2022 Earnings Presentation
29 slides from Eimskipafelag Islands Hf's earnings presentation, 2022
Slide 1: Presentation of Q3 2022 Results
PRESENTATION OF Q3 2022 RESULTS PRESENTATION OF Q1 2022 RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q3 Highlights
Q3 HIGHLIGHTS STRONG QUARTER FOR ALL SEGMENTS • Increase in EBITDA from Q3 2021 mostly attributable to the container liner system and primarily driven by growth in Trans-Atlantic services • Good utilization and increased operational efficiency supported by strong volume in import to Iceland and Tran
Slide 3: Economic Outlook Affecting Global Shipping Markets
ECONOMIC OUTLOOK AFFECTING GLOBAL SHIPPING MARKETS General slowdown in demand and worsening outlook driving freight rates down GLOBAL FREIGHT RATES ARE DECREASING SHARPLY… • The great uncertainty in the Global economy and fear of global recession driven by e.g., high inflation and the energy crisis
Slide 4: Diverse Sustainability Projects
DIVERSE SUSTAINABILITY PROJECTS Important milestones in energy transition ENERGY TRANSITION PARTNERSHIP WITH YOUTH UNIT AT JOB CENTER Eimskip aims to be at the forefront of energy Eimskip DK has for the last 6 years cooperated exchange and has clear goals when it comes with the Youth Center, a part
Slide 5: Operating Activities
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Slide 6: Liner Volume
LINER VOLUME Strong growth in import to Iceland and Trans-Atlantic services while decreased capacity affected volume in Norway LINER VOLUME DEVELOPMENT CHANGE BY TRADE LANES TRANS-ATLANTIC VOLUME DEVELOPMENT 6
Slide 7: Container Liner Analysis
CONTAINER LINER ANALYSIS Utilization remains good and a fourth vessel to be added to the North-America route in November to meet strong demand VESSEL UTILIZATION FOURTH VESSEL ON THE NORTH-AMERICA ROUTE • Eimskip temporarily increased capacity on the green line during the summer of 2022 with good re
Slide 8: Forwarding Volume
FORWARDING VOLUME Space and equipment availability has improved but change in market conditions is starting to put pressure on margins VOLUME SPLIT VOLUME DEVELOPMENT MAIN TRADELANES 9M 2022 8
Slide 9: Q3 2022 Financial Results
Q3 2022 FINANCIAL RESULTS OPERATING ACTIVITIES
Slide 10: Income Statement
INCOME STATEMENT Strong financial results in Q3 driven by good performance of all business units Q3 HIGHLIGHTS • Generally high activity in all business units, reflecting the relatively strong EUR thousand Q3 2022 Q3 2021 Change % economic conditions in Eimskip’s home market during the quarter Reven
Slide 11: Revenue Analysis
REVENUE ANALYSIS Strong revenue growth in the quarter driven by good liner volume, growth in Trans-Atlantic and increased cost of 3rd party services GEOGRAPHICAL SPLIT OF REVENUE REVENUE DEVELOPMENT EUR million 11
Slide 12: Expense Analysis
EXPENSE ANALYSIS Expense increase driven by high activity, cost of 3rd party services, oil prices and general inflation EXPENSE CATEGORIES EXPENSE BRIDGE EUR million 12 *3rd party expenses is mainly variable cost for services that Eimskip purchases on behalf of its customers and sells with a margin
Slide 13: EBITDA Analysis
EBITDA ANALYSIS EBITDA results mainly driven by container liner on back of good volume and growth in Trans-Atlantic EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY EUR million EUR million * EBITDA % 11.8% 6.4% 5.8% 10.0% 12.6% 8.5% 9.0% 14.1% 15.5% 12.4% 12.7% 15.8% 17.0% 13 *Q2 2021 adjusted
Slide 14: Cash Flow
CASH FLOW Continued good cash flow from operations and strong liquidity at the end of the quarter HIGHLIGHTS • Cash flow from operations is EUR 34.0m in the quarter and is in line Million EUR Q3 2022 Q3 2021 Change with same period last year EBITDA 49.6 36.8 12.8 • Maintenance CAPEX amounted to EUR
Slide 15: Maintenance CAPEX & Investments
MAINTENANCE CAPEX & INVESTMENTS
Slide 16: Development in Maintenance CAPEX & New Investment
DEVELOPMENT IN MAINTENANCE CAPEX & NEW INVESTMENT Maintenance CAPEX and new investments on track MAINTENANCE CAPEX HIGHLIGHTS EUR million • Maintenance CAPEX in 9M 2022 amounting to EUR 13.7m • Sustainable maintenance CAPEX level, given current operation and asset portfolio, is estimated in the rang
Slide 17: Investment in an Automated Container Gate and OCR System
INVESTMENT IN AN AUTOMATED CONTAINER GATE AND OCR SYSTEM Increasing efficiency and modernizing processes at Sundahöfn Terminal • The container gate in Sundahöfn is used by trucks when dropping off and picking up CURRENT CONTAINER GATE Current Container Gate containers at the terminal (gating in/gati
Slide 18: Outlook
OUTLOOK NEAR-TERM OUTLOOK REMAINS GOOD DESPITE GROWING ECONOMIC UNCERTAINTY • Overall, a good start of the fourth quarter and positive outlook for the remainder of the year • The Liner system continues on a good track with generally good volume • Import to Iceland is on a stable level which reflects
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 a focus on frozen and chilled commodities ABOUT SUSTAINABILITY KP
Slide 22: Income Statement and Cash Flow 9M 2022
INCOME STATEMENT AND CASH FLOW 9M 2022 Strong financial performance YTD EUR thousand 9M 2022 9M 2021* Change % Million EUR 9M 2022 9M 2021 Change EBITDA 124.7 82.8 41.9 Revenue 814,972 627,969 187,003 29.8% Expenses 690,255 555,389 134,866 24.3% Working capital changes & EBITDA adjustments (19.1) (1
Slide 23: Balance Sheet
BALANCE SHEET Strong financial position and leverage currently below target HIGHLIGHTS • Working capital items increasing due to seasonality and increasing EUR thousand 30.9.2022 31.12.2021 Change % turnover Non-current assets 423,466 435,719 (12,253) (2.8%) • Cash position increases by EUR 9.5m fro
Slide 24: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Revenue 292,173 283,115 239,684 254,748 236,607 211,134 180,228 Expenses 242,595 238,362 209,298 223,269 199,831 191,639 163,919 Salaries and related expense 33,586 34,943 32,306 32,850 29,611
Slide 25: Segment Analysis
SEGMENT ANALYSIS Strong performance of both business segments LINER FORWARDING EUR thousand Q3 2022 Q3 2021 Change % 9M 2022 9M 2021 Change % EUR thousand Q3 2022 Q3 2021 Change % 9M 2022 9M 2021 Change % Revenue 180,353 136,842 43,511 31.8% 506,110 374,615 131,495 35.1% Revenue 119,169 109,224 9,94
Slide 26: 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 14.2m in the quarter • IFRS 16 effect on EBITDA in Q3 2022 amounts to EUR 9.8m co
Slide 27: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 2.11.2022 EUR million Shareholder Shares % Samherji Holding ehf. 56,748,532 32.79% Gildi - lífeyrissjóður 21,680,269 12.53% Lífeyrissjóður verzlunarmanna 21,167,406 12.23% Birta lífeyrissjóður 8,105,035 4.68% Stapi lífeyrissjóður 6,997,7
Slide 28: 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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