Slide 1: Presentation of Q1 Results
PRESENTATION OF Q1 RESULTS 16 MAY 2023 Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q1 Highlights
Q1 HIGHLIGHTS GOOD RESULTS DRIVEN BY STRONG PERFORMANCE OF ALL THREE PILLARS OF THE CONTAINER LINER • Sharp decline in global freight rates resulting in a decrease in both revenue and cost YoY, mainly through purchase of third-party services • Good results in container liner with Iceland, Faroe Isla
Slide 3: Strategic Changes to the Sailing System
STRATEGIC CHANGES TO THE SAILING SYSTEM Increased reliability, cost-savings and lower carbon emissions WEEKLY COASTAL SERVICES CONNECTING REEFER LINER STRENGHTENING AND IN ICELAND WITH AND CONTAINER LINER VIA STREAMLINING A DEDICATED VESSEL FAROE ISLANDS THE GREEN ROUTE Deploying a dedicated vessel
Slide 4: International Business Development
INTERNATIONAL BUSINESS DEVELOPMENT Selected highlights from Eimskip’s international operations EIMSKIP GREENLAND ACQUIRES PORT ACENCY AND FORWARDING BUSINESS EIMSKIP NETHERLANDS RELOCATING TO NEW FACILITIES IN 2025 Eimskip Greenland has acquired the port Eimskip Netherlands has reached an agency and
Slide 5: New Sustainability Targets
NEW SUSTAINABILITY TARGETS Main KPIs for Eimskip Group 2023 2023 Zero accident Policy All employees confirmed Code of Conduct 2040 2025 2023 Net-Zero emission* Employee turnover in line Suppliers with 80% of with benchmark within spend confirmed the the sector Supplier Code of Conduct 2030 2024 Incr
Slide 6: Selected Sustainability Projects
SELECTED SUSTAINABILITY PROJECTS Proud partner of Landsbjörg ACTIVE SUPPORT TO THE COMMUNITY ELECTRIC TRUCKS HAVE BEEN DELIVERED PARTNERSHIP IN FAROE ISLANDS RECEIVES AWARDS 15% CO2 ICE-SAR LANDSBJÖRG With the two Volvo 18-pallet electric trucks, Eimskip Faroe ship is a part of the Faroese Sustainab
Slide 7: Deep-Sea Rates Stabilizing After a Sharp Decline in 2H 2022
DEEP-SEA RATES STABILIZING AFTER A SHARP DECLINE IN 2H 2022 Trans-Atlantic rates decreased in the quarter while other rates have stabilized at current level DREWRY WORLD CONTAINER INDEX 11 MAY 2023 (USD$/40ft) • After a period of unusually high global freight rates, caused e.g. by the supply chain d
Slide 8: Operating Activities
OPERATING ACTIVITIES. % ook
Slide 9: Liner Volume
LINER VOLUME Overall a moderate growth in liner volume with exports from Iceland and Faroes benefitting from a strong pelagic season LINER VOLUME DEVELOPMENT CHANGE BY TRADE LANES TRANS-ATLANTIC VOLUME DEVELOPMENT VESSEL UTILIZATION 9 Note: Reefer liner volume in Norway converted from tons to teus
Slide 10: Forwarding Volume
FORWARDING VOLUME Marginal decrease in total volume from previous year in a challenging market environment VOLUME SPLIT VOLUME DEVELOPMENT 10
Slide 11: Financial Results
FINANCIAL RESULTS
Slide 12: Income Statement
INCOME STATEMENT Good results in the quarter driven by the liner services HIGHLIGHTS • Revenue decreases by EUR 25.1m and total expenses EUR thousand Q1 2023 Q1 2022 Change % decrease by EUR 26.6m from previous year, both affected by lower global freight rates Revenue 214,569 239,684 (25,115) (10.5%
Slide 13: Revenue Analysis
REVENUE ANALYSIS Decrease in global freight rates resulting in lower total revenue and increasing share of Iceland-related revenue GEOGRAPHICAL SPLIT OF REVENUE REVENUE DEVELOPMENT EUR million 13
Slide 14: Expense Analysis
EXPENSE ANALYSIS Decrease in global freight rates heavily affecting cost of third-party services and hence its share in total expenses EXPENSE CATEGORIES EXPENSE BRIDGE EUR million 14 *3rd party expenses mainly consist of services that Eimskip purchases on behalf of its customers and sells with a ma
Slide 15: EBITDA Analysis
EBITDA ANALYSIS Generally good performance in the quarter with anticipated decrease in international forwarding due to changes in global markets EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY EUR million EUR million 15 *Q2 2021 adjusted for settlement with the Icelandic Competition Authority
Slide 16: Cash Flow
CASH FLOW Good cash flow from operations and strong liquidity at the end of the quarter HIGHLIGHTS EUR million Q1 2023 Q1 2022 Change • Cash flow from operations is EUR 30.2m in the quarter, an increase of EUR 3.9m from same period last year, mainly due to decrease in net EBITDA 31.8 30.4 1.5 workin
Slide 17: Development in Maintenance CAPEX & New Investment
DEVELOPMENT IN MAINTENANCE CAPEX & NEW INVESTMENT Maintenance CAPEX and new investment on track and in line with plan MAINTENANCE CAPEX EUR million NEW INVESTMENT EUR million 17
Slide 18: Outlook
OUTLOOK
Slide 19: Outlook for Coming Quarters
OUTLOOK FOR COMING QUARTERS • The outlook for coming months is mixed with general positivity surrounding our home market in Iceland, the Faroes and Norway while changes in global market conditions adversely affect the international forwarding operations and Trans-Atlantic rates although volume expec
Slide 20: Thank You
THANK YOU
Slide 21: Appendix
APPENDIX
Slide 22: 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 23: Balance Sheet
BALANCE SHEET Strong financial position and leverage remains below long-target HIGHLIGHTS EUR thousand 31.03.2023 31.12.2022 Change % • Liabilities increase by EUR 28.5m, due to declared dividend and share capital reduction amounting to EUR 35m, while interest-bearing debt Non-current assets 427,053
Slide 24: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) Q1 2023 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Revenue 214,569 1,070,626 255,654 292,173 283,115 239,684 882,717 254,748 236,607 211,134 180,228 Expenses 182,731 907,540 217,285 242,595 238,362 209,298 778,658 223,
Slide 25: Segment Analysis
SEGMENT ANALYSIS Good performance of both business segments LINER FORWARDING EUR thousand Q1 2023 Q1 2022 Change % EUR thousand Q1 2023 Q1 2022 Change % Revenue 152,380 156,485 (4,105) (2.6%) Revenue 72,365 115,394 (43,029) (37.3%) Expenses 128,038 136,027 (7,989) (5.9%) Expenses 64,869 105,466 (40,
Slide 26: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Lease liabilities mainly consist of chartered vessels and leased buildings and land LEASE LIABILITIES ANALYSIS LEASE LIABILITIES BRIDGE EUR million Lease liabilities by categories IFRS 16 - Impact on EBITDA 26
Slide 27: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 12.5.2023 EUR million Shareholder Shares % 1 Seley ehf. 55,589,385 33.12% 2 Gildi - lífeyrissjóður 21,237,427 12.65% 3 Lífeyrissjóður verzlunarmanna 20,735,040 12.35% 4 Birta lífeyrissjóður 7,939,481 4.73% 5 Stapi lífeyrissjóður 6,808,73
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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