Slide 1: Presentation of Q1 Results
PRESENTATION OF Q1 RESULTS Vilhelm Már Thorsteinsson, CEO
Slide 2: 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 3: Q1 2021: Not the performance we expected
Í lokin Q1 Q12021 NOT THEPERFORMANCE GOOD START WE EXPECTED • Generally slower business than expected and harsh weather conditions in • Profitability in container liner improving, especially towards the end of the North-Atlantic region quarter • First signs of COVID-19 affecting the operation • Stro
Slide 4: Current trends in global container shipping markets
CURRENT TRENDS IN GLOBAL CONTAINER SHIPPING MARKETS The Suez accident put even more pressure on rates • The rates began to reduce after the Chinese New Year but the Ever Given accident in Suez pushed the European - Asian rates up again • Still lack of vessel space and containers • Back-log due to Su
Slide 5: Sustainability
SUSTAINABILITY
Slide 6: Sustainability KPI's – QoQ development
SUSTAINABILITY KPI‘S – QoQ DEVELOPMENT Continued progress towards less environmental impact GREENHOUSE GAS EMISSION - tCO₂e TOTAL AMOUNT OF PRINTED PAPER TOTAL SORTED WASTE 300,000 80,000 500,000 70,000 250,000 400,000 60,000 12% 9% 200,000 50,000 -5% 300,000 Pages tCO₂e 150,000 kg 40,000 30,000 200
Slide 7: Engaged group of employees
ENGAGED GROUP OF EMPLOYEES Key ingredient in good results – measured twice a year INCREASING EMPLOYEE ENGAGEMENT DURING CHALLENGING TIMES SCORE BENCHMARK EXAMPLE OF QUESTIONS Engagement score 8.0 (+0,1) “How likely is it you would recommend Eimskip Group as a Engagement +0.2 8.0 place to work?” 8.3
Slide 8: Financial results
FINANCIAL-RESULTS ~
Slide 9: Income statement
INCOME STATEMENT Profitability improves following focused revenue management and continued realization of streamlining measures Q1 • Revenue increase by 11.5% EUR thousand Q1 2021 Q1 2020 Change % • Focus on revenue management to improve profitability • Forwarding revenues increase due to substantia
Slide 10: Development in liner services
DEVELOPMENT IN LINER SERVICES Stronger performance despite lower volume PERFORMANCE EUR thousand Q1 2021 Q1 2020 Change % • Strong focus has been on improving performance in container liner services starting to yield positively Revenue 105,032 100,361 4,671 4.7% • Domestic Iceland delivering good re
Slide 11: Development in forwarding services
DEVELOPMENT IN FORWARDING SERVICES Good performance in a very demanding market environment PERFORMANCE EUR thousand Q1 2021 Q1 2020 Change % • Good performance in freight forwarding with increased margins despite disruptions in global shipping markets Revenue 84,978 71,331 13,647 19.1% • Very demand
Slide 12: Expense bridge
EXPENSE BRIDGE Significant increase in 3rd party transportation expenses EXPENSE BRIDGE Q1 • 3rd party expenses increasing due to global capacity constraints driving up prices • Largest 3rd party expense items are e.g. pre- and on-carriage, sea- transportation and terminal handling cost (THC) • Decr
Slide 13: EBITDA bridge
EBITDA BRIDGE Improved performance of the container liner services and overall good performance in International forwarding EBITDA BRIDGE BY BUSINESS ACTIVITY EBITDA BRIDGE BY OPERATING ITEMS 13
Slide 14: EBIT bridge
EBIT BRIDGE Operational improvements delivered to bottom line EBIT BRIDGE BY BUSINESS ACTIVITY 14
Slide 15: Cash flow
CASH FLOW Strong increase in cash flow from operation Q1 • Considerable increase in cash flow before debt/lease service and Million EUR Q1 2021 Q1 2020 Change before investments • Continued focus on delivering cash-flow from operation EBITDA 16.3 9.3 7.0 • Completed refinancing of revolving credit f
Slide 16: Balance sheet
BALANCE SHEET Stable balance sheet and working capital changes reflect development in revenue and expenses ASSETS EQUITY AND LIABILITIES EUR thousand 31.03.2021 31.12.2020 Change % EUR thousand 31.03.2021 31.12.2020 Change % Non-current assets 396,237 400,433 (4,196) (1.0%) Equity 222,022 230,657 (8
Slide 17: Financial summary results & outlook
OUTLOOK FINANCIAL SUMMARYRESULTS & OUTLOOK
Slide 18: Outlook
OUTLOOK CURRENT QUARTER OUTLOOK • Good volume so far in liner services following a good end of first quarter • Global trends and disruptions in container shipping markets putting • Export from Iceland benefitting e.g. from capelin season pressure on volume and prices in forwarding and pre- and on-ca
Slide 19: Thank you
THANK YOU 19
Slide 20: Appendix I
APPENDIX I 20
Slide 21: Operating results by quarter
OPERATING RESULTS BY QUARTER EUR thousand OPERATING RESULTS Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Revenue 180,228 175,653 170,378 160,615 161,670 Expenses 163,919 160,724 148,968 144,614 152,332 EBITDA 16,309 14,929 21,410 16,001 9,338 EBIT 4,512 3,201 10,446 5,035 (1,594) Net earnings (loss) earn
Slide 22: Lease liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) No material changes in lease liabilities during the quarter IFRS 16 LEASE LIABILITIES BRIDGE ANALYSIS Q1 • Leases of buildings account for majority of lease Lease liabilities liabilities • Mostly long-term contracts • Vessel leases have proportionally larger effect on the
Slide 23: Shareholders information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 10.5.2021 EUR ‘000 Shareholder Country Shares % Samherji Holding ehf.* Iceland 51.496.338 29,39% Gildi - lífeyrissjóður Iceland 26.530.490 15,14% Lífeyrissjóður verslunarmanna Iceland 24.924.181 14,23% Arion banki hf. Iceland 10.819.950
Slide 24: 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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