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 with connections to international markets and is specialized in worldwide freight forwarding services, with the vision of providing excellence in transportation solutions and services ABOUT KEY FIGURES Q1 2020 GEOGRAPH
Slide 3: Key Highlights for Q1 2020
KEY HIGHLIGHTS FOR Q1 2020 1 Cooldown of the Icelandic economy, lower catch around Iceland and the Faroe Islands resulting in lower container liner volume 2 Streamlining measures and integration projects resulting in lower cost and an FTE reduction of 170 YTD 3 COVID-19 situation negatively affectin
Slide 4: Managing through the COVID-19 Pandemic
MANAGING THROUGH THE COVID-19 PANDEMIC Challenging situation that also creates new opportunities NEW NORMAL RETURN GAIN CONTROL • Leverage on things we have and FIRST RESPONSE will learn from COVID-19 situation • Focus on close relationship with • New way of working and • New ways of day to day remo
Slide 5: Strong Growth in Number of Shipments at TVG Xpress in Iceland
STRONG GROWTH IN NUMBER OF SHIPMENTS AT TVG XPRESS IN ICELAND LAST MILE DELIVERY • Strong growth in TVG Xpress Last Mile Delivery system as result of Covid-19 situation • Important steps taken to expand delivery network e.g. cooperation with Dropp and own delivery boxes • Focus on “Last mile” and eC
Slide 6: Vessel Newbuilding and Royal Arctic Line Co-operation
VESSEL NEWBUILDING AND ROYAL ARCTIC LINE CO-OPERATION Important milestone when Dettifoss was delivered in May NEW BUILDINGS AND CO-OPERATION WITH ROYAL ARCTIC LINE • Dettifoss was delivered in beginning of May and is expected to come into service after mid-June • Final drawdown on financing from KfW
Slide 7: Operating Activities
SETJA HJÁLMANA Í MILLIGLÆRU OPERATING ACTIVITIES OPERATING ACTIVITIES
Slide 8: Volume Development in Liner Services
VOLUME DEVELOPMENT IN LINER SERVICES Container liner volume down 4.6% and Reefer liner down 8% YoY in Q1 Q1 • Import to Iceland down by 7.7% YoY but in line with expectations • Export from Iceland down by 1.0% YoY, affected by low catch (-26%) and thus less favorable volume mix • Faroe export down 1
Slide 9: Geographical Split of Liner Volume
GEOGRAPHICAL SPLIT OF LINER VOLUME Volume split stable between periods GEOGRAPHICAL SPLIT SEGMENT SPLIT 9
Slide 10: Volume Development in Forwarding
VOLUME DEVELOPMENT IN FORWARDING Reefer forwarding down 6% in Q1 mostly due to less inbound cargo Q1 • Reefer forwarding volume down 6% from last year • Mainly driven by less inbound cargo handling which is lower paying business than outbound cargo • Dry forwarding volume down 11% from last year, al
Slide 11: Geographical Split and Type of Forwarding Volume
GEOGRAPHICAL SPLIT AND TYPE OF FORWARDING VOLUME Increased volume share of Asia despite China being affected by COVID-19 early GEOGRAPHICAL SPLIT SEGMENT SPLIT 11
Slide 12: Various Streamlining and COVID-19 Counter Measures Have Been Taken
VARIOUS STREAMLINING AND COVID-19 COUNTER MEASURES HAVE BEEN TAKEN FTE reduction of 10% YTD KEY MEASURES • The number of FTE’s in Eimskip Group has been reduced by 170 YTD in all layers of the Company, an equivalent of 10% • Estimated cost savings EUR 11 million on annual basis • Sales & Service div
Slide 13: Financial Results
FINANCIAL FINANCIAL RESULTS RESULTS FINANCIAL RESULTS 13
Slide 14: Income Statement
INCOME STATEMENT Operational improvements offset by volume decrease in container liner Q1 EUR thousand Q1 2020 Q1 2019 Change % • Marginal 1.4% decrease in revenues however affected both ways by e.g. Revenue 161,670 163,988 (2,318) (1.4%) • Volume decrease Expenses 152,332 150,766 1,566 1.0% • Disco
Slide 15: Geographical Split and Type of Revenue
GEOGRAPHICAL SPLIT AND TYPE OF REVENUE Iceland affected by lower import volume GEOGRAPHICAL SPLIT TYPE OF REVENUE SPLIT 15
Slide 16: Results by Business Segments
RESULTS BY BUSINESS SEGMENTS Forwarding in line with last year but liner negatively affected by current environment REVENUE SPLIT BY SEGMENTS EUR thousand 3M 2020 3M 2019 Change % Liner Services: Revenue 97,160 105,712 (8,552) (8.1%) Expenses 92,766 97,317 (4,551) (4.7%) EBITDA 4,394 8,395 (4,001) (
Slide 17: Development and Nature of Expenses
DEVELOPMENT AND NATURE OF EXPENSES Streamlining measures positively affecting salaries and admin expenses Q1 • 3rd party expenses affected by prices, e.g. deep- sea carriers • IMO regulation change from year end 2019 increasing bunker cost • Offset by low sulfur surcharge in revenue • Salary cost an
Slide 18: EBITDA Bridge
EBITDA BRIDGE Negative volume development as well as 3rd party expenses EBITDA BRIDGE BY BUSINESS ACTIVITY EBITDA BRIDGE BY OPERATING ITEMS 18
Slide 19: Balance Sheet
BALANCE SHEET Equity ratio affected by total income EUR thousand 31.3.2020 31.12.2019 Change % Q1 Non-current assets 378,295 355,712 22,583 6.3% • Right of use assets increase Fixed assets 287,522 292,470 (4,948) (1.7%) Right-of-use assets 66,879 44,486 22,393 - • Tromsøterminalen in Norway started
Slide 20: Development in Capex
DEVELOPMENT IN CAPEX Vessel investments originally planned in 2019 delayed to 2020 Q1 • Maintenance CAPEX in the quarter at similar level YoY • Investments minimal but finalization of vessel new buildings still to come • Approximately third of planned maintenance CAPEX has been put on hold due to un
Slide 21: Cash Flow
CASH FLOW Cash flow from operation affected by lower results and change in working capital Q1 Million EUR Q1 2020 Q1 2019 • Working capital items negatively affected by slow end off 2019 EBITDA 9.3 13.2 • Proceeds from sold assets contribute positively to cash flow Working capital changes & EBITDA a
Slide 22: Management Assessment of Performance and Status
MANAGEMENT ASSESMENT OF PERFORMANCE AND STATUS PUBLISHED QUARTER CURRENT QUARTER NEAR TERM OUTLOOK • Good results in forwarding, especially given COVID- • Pleased to have managed to secure health and • Cost benefit of FTE reduction in 1H 2020 will start to 19 situation security of employees realize
Slide 23: Thank You
THANK YOU 23
Slide 24: Appendix I
APPENDIX I 24
Slide 25: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY LEADING IN ENVIRONMENTAL MATTERS FOR 29 YEARS • Eimskip became one of the first companies in Iceland to establish an environmental policy 29 years ago CARBON • An ambitious goal to reduce carbon footprint by 40% from 2015 to 2030 FOOTPRINT • Dettifoss, the largest and
Slide 26: Operational Overview
OPERATIONAL OVERVIEW Insight to the operation Eimskip North-America Europe Scandinavia Asia Total International Iceland # of FTE's # of Offices 9 12 13 7 41 14 # of Coldstores 2 0 5 0 7 7 Size (Tons) 7,000 0 35,700 0 42,700 15,300 # of Warehouse 4 3 6 1 14 14 Size (m 2 ) 20,251 3,700 32,550 2,000 58
Slide 27: Operating Results by Quarter
OPERATING RESULTS BY QUARTER Amounts are in thousands of EUR OPERATING RESULTS Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Revenue 161.670 175.549 172.522 167.535 163.988 Expenses 152.332 164.363 152.210 151.706 150.766 EBITDA 9.338 11.186 20.312 15.829 13.222 EBIT (1.594) (3.319) 9.248 5.124 2.469 Net
Slide 28: Other Matters
OTHER MATTERS SHAREHOLDERS • Eimskip’s market capitalization was EUR 156.0 million or ISK 24.4 billion at the end of trading on 19 May 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 19 May 2
Slide 29: 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
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