Slide 1: Q3 2017 EBITDA in line with expectations
Q3 2017 EBITDA IN LINE WITH EXPECTATIONS Q3 2017 - 22 November 2017 | EBITDA forecast for 2017 EUR 60 to 62 million
Slide 2: Highlights
HIGHLIGHTS 2
Slide 3: Key highlights for Q3 2017
KEY HIGHLIGHTS FOR Q3 2017 Q3 2017 compared to Q3 2016 REVENUE AFFECTING REVENUE REVENUE Liner services + New companies EUR 177.0 m EUR 112.2 m, up 12.8% + Volume growth up 32.0% Forwarding services + International freight EUR 64.8 m, up 87.1% rates EBITDA AFFECTING EBITDA EBITDA Liner services + Vo
Slide 4: Transported volume in Q3 2013 to 2017
TRANSPORTED VOLUME IN Q3 2013 TO 2017 CAGR 4.0% for liner services and 13.9% for forwarding services LINER SERVICES FORWARDING SERVICES Q3 Q3 Volume index: 2010 volume at 100 * New acquisitions account for 31.5% and organic growth 19.3% 4
Slide 5: Revenue and EBITDA 2013 to 2017 by quarter
REVENUE AND EBITDA 2013 TO 2017 BY QUARTER Revenue and EBITDA in Q3 2017 outperform Q3 in previous years REVENUE EBITDA EUR million EUR million * Add-back of EUR 2.3 million non-recurring items in Q1 2017 5
Slide 6: China Forwarders Freight Index
CHINA FORWARDERS FREIGHT INDEX China - Europe 6
Slide 7: Bunker price development
BUNKER PRICE DEVELOPMENT Average fuel price for the 9M 2017 approximately 50% up from 9M 2016 Rotterdam heavy fuel price in USD 7
Slide 8: Key highlights for 9M 2017
KEY HIGHLIGHTS FOR 9M 2017 9M 2017 compared to 9M 2016 REVENUE AFFECTING REVENUE REVENUE Liner services + New companies EUR 497.0 m EUR 321.7 m, up 15.5% + Volume growth up 33.1% Forwarding services + International freight EUR 175.3 m, up 84.8% rates AFFECTING EBITDA EBITDA EBITDA + New companies EU
Slide 9: Transported volume in 9M 2013 to 2017
TRANSPORTED VOLUME IN 9M 2013 TO 2017 CAGR 4.3% for liner services and 12.2% for forwarding services LINER SERVICES FORWARDING SERVICES 9M 9M Volume index: 2010 volume at 100 * New acquisitions account for 30.8% and organic growth 9.3% 9
Slide 10: Liner services volume
LINER SERVICES VOLUME Iceland, Faroe Islands, Norway and Trans-Atlantic 10
Slide 11: Forwarding services volume
FORWARDING SERVICES VOLUME Reefer and dry cargo forwarding 11
Slide 12: Financial results
FINANCIAL RESULTS 12
Slide 13: Income statement 9M 2017
INCOME STATEMENT 9M 2017 Results affected by the fishermen strike in Iceland and other non-recurring items in the first half of the year EBITDA Revenue Expenses EUR 45.3 m up 4.0% EUR 497.0 m EUR 451.7 m Adjusted EBITDA up 33.1% up 36.9% EUR 47.6 m up 9.2% Depreciation and Net finance expense Net ea
Slide 14: Operating expenses bridge
OPERATING EXPENSES BRIDGE Expenses related to changed sailing system EUR 2.7 million and imbalance cost EUR 1.1 million, realized in the first half of 2017 14
Slide 15: Salary bridge 9M 2017
SALARY BRIDGE 9M 2017 Salaries and related expenses increased by 17.3%, thereof 3.4% due to increased activity and wage increase 15
Slide 16: Geographical split of revenue
GEOGRAPHICAL SPLIT OF REVENUE Europe has grown due to new forwarding acquisitions 16
Slide 17: Currency exchange gains and losses by quarter 2013 to 2017
CURRENCY EXCHANGE GAINS AND LOSSES BY QUARTER 2013 TO 2017 Accumulated fluctuations 2013 to 2016 positive of EUR 7.7 million and 9M 2017 negative of EUR 3.2 million 17
Slide 18: Revenue by business segment
REVENUE BY BUSINESS SEGMENT Liner services and forwarding services 18
Slide 19: EBITDA by business segment
EBITDA BY BUSINESS SEGMENT Liner services and forwarding services 19
Slide 20: Financial ratios 2013 to 9M 2017
FINANCIAL RATIOS 2013 TO 9M 2017 Increased leverage due to new acquisitions and other investments NET DEBT / LTM-EBITDA NET DEBT AND EQUITY RATIO EUR million EUR million 20
Slide 21: Cash flow bridge 9M 2017
CASH FLOW BRIDGE 9M 2017 Affected by M&A investments and vessel investments * Includes EUR 11.7 million contract payment on vessel building in China 21
Slide 22: Capex 2013 to 2017
CAPEX 2013 TO 2017 Investments 9M 2017 include EUR 11.7 million for vessel down payment and EUR 8.3 million for three buildings in Iceland 22
Slide 23: Ongoing projects and future development
ONGOING PROJECTS AND FUTURE DEVELOPMENT 23
Slide 24: Eimskip's sailing system
EIMSKIP’S SAILING SYSTEM Six sailing routes in the North Atlantic Increased capacity in 2017 Changes made to the sailing system in February 2017 A new Red Line added Services of the Green Line and the Gray Line changed Weekly coastal services offered One vessel added Increased capacity t
Slide 25: Green Line
GREEN LINE Connecting Northern Europe and North America New weekly service Adding third vessel to the Green Line Volume growth in Trans-Atlantic services, tripled since 2009 and 33% this year A new contract with the international shipping company CMA CGM between Halifax, Nova Scotia and Portla
Slide 26: Inventory financing
INVENTORY FINANCING Value added service Eimskip and GAMMA Capital Management signed an agreement in November to establish the inventory financing company Krít ehf. New opportunities of value added services for customers by connecting logistics services with inventory financing Eimskip uses its
Slide 27: Three buildings
THREE BUILDINGS Purchased from the Nordic Investment Bank Eimskip is pleased to have finalized a favorable agreement with the Nordic Investment Bank (NIB) to purchase three buildings in Eimskip’s terminal in Reykjavík The assets have been leased from NIB since 2009 The office building for Eims
Slide 28: Strengthening of IT systems
STRENGTHENING OF IT SYSTEMS Reaching competitive advantage The company has been working on several IT system upgrades In June 2017 the company changed its main IT service provider Additional cost due to transfer in the second half of the year Further strengthening of the IT platform creates
Slide 29: PCC Bakki Silicon
PCC BAKKI SILICON A silicon metal production plant in Húsavík, Iceland Eimskip and PCC Bakki Silicon have signed a stevedoring contract The first discharge of vessel was in November Expected start of plant operation is in January 2018 Estimated volume per year Discharge and transport to fa
Slide 30: Investments
INVESTMENTS Acquisitions and Joint Ventures Eimskip continues to work on organic growth and strategic accretive acquisitions to increase shareholder value Recent progress Acquisition of a 90% share in Extraco in October 2016 Acquisition of a 80% share in Mareco in January 2017 Cooperation
Slide 31: Eimskip and Royal Arctic Line
EIMSKIP AND ROYAL ARCTIC LINE The cooperation regarding the vessel sharing agreement estimated to begin in the middle of 2019 The vessel investment is a part of the renewal of Eimskip’s vessel fleet Changed cost structure with lower cost per TEU Godafoss and Dettifoss are 22 years old, built i
Slide 32: Updated EBITDA forecast for 2017
UPDATED EBITDA FORECAST FOR 2017 EBITDA in the range of EUR 60 to 62 million The first nine months were in line with the company’s expectations, the volume for the first six weeks of the fourth quarter are also in line with expectations The EBITDA outlook for 2017 is EUR 60 to 62 million Liner
Slide 33: Questions
QUESTIONS 33
Slide 34: 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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