Slide 1: Q4 and FY 2023 Results
Q4 AND FY 2023 RESULTS 13 FEBRUARY 2024 Q4 AND FY 2023 PRESENTATION OF RESULTS 13 FEBRUARY 2024 Q1 2022 RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q4 Highlights
Q4 HIGHLIGHTS FAIR RESULTS FOR FOURTH QUARTER GIVEN THE CURRENT ENVIRONMENT • Liner services with satisfactory performance given traditional seasonality, although the results are marked by transformation in Trans-Atlantic rates compared to the previous year when they were on a highly elevated level
Slide 3: 2023 Highlights
2023 HIGHLIGHTS GOOD FINANCIAL RESULTS DESPITE SWIFT MARKET CHANGES • Container liner delivered good results although Trans-Atlantic market conditions changed dramatically over the course of the year from very elevated rate levels • Total liner volume saw slight decrease from previous year, primaril
Slide 4: The only pan-Arctic Ocean carrier sailing system as from end of February 2024
THE ONLY PAN-ARCTIC OCEAN CARRIER Niche home market in economies rich in natural resources and driven by import and export SAILING SYSTEM AS FROM END OF FEBRUARY 2024 4
Slide 5: More environmentally friendly sailing system
INCREASED PRODUCTIVITY SAILING SYSTEM MORE ENVIRONMENTALLY FRIENDLY SAILING SYSTEM SIMPLER AND MORE RELIABLE SCHEDULE ALONG WITH INCREASED PRODUCTIVITY IN PORTS WHICH ENABLES SLOWER SAILING SPEED • Sailed miles reduced by approximately 40,000 miles or 5% • Reduced bunker consumption is about 5,000 t
Slide 6: Selected Sustainability projects
Selected Sustainability projects Learning portal +0.2 since 2022 0.3 over True Benchmark® Sustainability is integral to our company's diversified operations True Benchmark® based on Peakon database 6
Slide 7: Continuous work towards sustainability targets
TARGET TO REACH NET ZERO 2040 WOMEN IN MANAGEMENT CONTINOUS WORK 8% 33% TOWARDS Target net zero 2040 Target 40% by 2030 SUSTAINABILITY 8% down from 2022 Up 2% from 2022 TARGETS CODE OF CONDUCT SUPPLIER CODE OF CONDUCT 74% 39% Target 100% by 2023 Suppliers with 80% of spend Up from 49% 2022 to confir
Slide 8: Generous support to the Icelandic community
29% FOR SPORTS AND YOUTH PROGRAMS 31% FOR PREVENTATION, SAFETY AND RESCUE WORK Prevention, Others safety and 15% rescue work 31% Culture and art 25% Sport and youth program 29% GENEROUS SUPPORT TO THE ICELANDIC COMMUNITY Total amount ISK 118m Total number of beneficiaries 226 Service ISK 31m Cash IS
Slide 9: Strategic priorities for 2024
Strategic SUSTAINABLE & HEALTHY OPERATIONS PROACTIVE & PROFESSIONAL CUSTOMER SERVICE DEVELOPING HUMAN RESOURCES priorities for renew with growth and renew with growth and renew with growth and raise margin raise margin raise margin 2024 Proactive cost control and focus on Increase customer value by
Slide 10: Volatility continues in the global shipping market
VOLATILITY CONTINUES IN THE GLOBAL SHIPPING MARKET Red sea crisis causing disruption in global shipping DREWRY WORLD CONTAINER INDEX (US$/40FT) HIGHLIGHTS $US/40ft container 12,000 • Following a prolonged period of freight rate decreases, a swift turnaround occurred in wake of the Red Sea Crisis tha
Slide 11: Operating activities
OPERATING ACTIVITIES OPERATIONAL ACTIVITIES
Slide 12: Liner volume
LINER VOLUME Home market resilience offsets decrease in Trans-Atlantic volume LINER VOLUME DEVELOPMENT BY QUARTER CHANGE BY TRADE LANES Volume (Teus ‘000) Volume (Teus '000) -2.5% 0.9 0.5 (0.4) 0.0 (1.6) 0.2 0.4 53.6 54.2 54.7 51.5 50.6 51.7 50.8 51.4 48.0 51.5 51.4 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q
Slide 13: Trans-Atlantic analysis
TRANS-ATLANTIC ANALYSIS Trans-Atlantic rates remained stable in the fourth quarter after a steep decline since the beginning of the year TRANS-ATLANTIC VOLUME DEVELOPMENT BY QUARTER DREWRY WORLD CONTAINER INDEX DEVELOPMENT Volume (Teus ‘000) $US/40ft container 12 -20.6% 12,000 10 9.2 9.4 7.9 7.7 7.6
Slide 14: Container liner analysis
CONTAINER LINER ANALYSIS Utilization in the quarter decreased with conventional holiday slowdown and returning Trans-Atlantic seasonality VESSEL UTILIZATION HIGHLIGHTS • Utilization in Container liner decreased in the quarter, mainly due to lower Trans-Atlantic 91% 91% 90% 88% 91% 87% 87% 87% 87% vo
Slide 15: Forwarding volume
FORWARDING VOLUME Good growth in forwarding volume amid substantial shift in the market landscape VOLUME SPLIT VOLUME DEVELOPMENT BY QUARTER Volume (Teus ‘000) 3% 4% 7.1% 14% 14% 46.4 48.3 42.7 45.1 41.8 42.0 40.8 39.8 42.4 43% Q4 2023 Q4 2022 50% 32% 40% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2
Slide 16: Financial results
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Slide 17: Income statement Q4 2023
INCOME STATEMENT Q4 2023 Fair results given both returning seasonality and reduced volumes in Trans-Atlantic HIGHLIGHTS EUR thousand Q4 2023 Q4 2022 Change % • Revenue amounting to EUR 201.5m and operating expenses amounting to EUR 178.8m, decreasing by 21% and 18% respectively compared to the prece
Slide 18: Income statement FY 2023
INCOME STATEMENT FY 2023 Good results for the year despite significant change in market conditions from previous year HIGHLIGHTS EUR thousand 12M 2023 12M 2022 Change % • Revenue in 2023 amounted to EUR 827.5m and operating expenses amounted to EUR 704.2m, a 23% and 22% decrease respectively compare
Slide 19: Revenue analysis
REVENUE ANALYSIS Decrease driven by significant change in Forwarding and Trans-Atlantic revenues GEOGRAPHICAL SPLIT AND CURRENCY SPLIT OF REVENUE REVENUE DEVELOPMENT BY QUARTER EURm 400 7% 3% 9% 6% -21.2% 20% 42% 350 Q4 2023 Q4 2022 55% 28% 300 292,2 7% 283,1 8% 7% 8% 254,7 255,7 250 239,7 214,6 209
Slide 20: Expense analysis
EXPENSE ANALYSIS Expenses decrease from previous year mainly due to lower cost of third-party transportation services EXPENSE CATEGORIES & CURRENCY SPLIT EXPENSE BRIDGE EURm 7% 3% 16% 21% Q4 2023 9% Q4 2022 54% (38.5) 9% 9% 63% (3.0) 1.6 1.0 0.4 9% 217.3 12% 14% 178.8 4% 30% 4% 31% 2023 15% 2022 26%
Slide 21: EBITDA analysis
EBITDA ANALYSIS Decrease in EBITDA mainly due to lower margins in Container liner and International forwarding EBITDA DEVELOPMENT BY QUARTER EBITDA BRIDGE BY BUSINESS ACTIVITY EURm EURm -40.1% 49.6 44.8 38.4 34.3 34.5 (14.4) 31.5 31.8 30.4 (0.2) 0.8 1.9 22.7 (3.8) 38.4 22.7 Q4 2021 Q1 2022 Q2 2022 Q
Slide 22: EBITDA & EBIT FY 2023 analysis
EBITDA & EBIT FY 2023 ANALYSIS Good EBITDA result despite anticipated decrease from a record last year EBITDA BRIDGE BY BUSINESS ACTIVITY EBIT BRIDGE BY BUSINESS ACTIVITY EURm EURm (25.7) (2.9) (27.1) (11.5) (1.9) 2.3 (2.8) (11.6) (1.6) 2.7 163.1 101.5 123.4 61.0 FY 2022 Container liner Reefer liner
Slide 23: Balance sheet
BALANCE SHEET Strong balance sheet with low leverage and equity ratio well above target HIGHLIGHTS • Fixed assets increase by EUR 13.7m while right-of-use assets decrease by EUR 13.3m EUR thousand 31.12.2023 31.12.2022 Change % • Increase in Other non-currents assets driven by increase in book value
Slide 24: Cash flow
CASH FLOW Cash flow from operations in the quarter marked by material tax payment in Iceland following improved operations in recent years HIGHLIGHTS • Cash flow from operations amounted to EUR 11.1m in the quarter, a decrease of EUR EUR million Q4 2023 Q4 2022 Change 31.9m from same period last yea
Slide 25: Maintenance CAPEX & Investments
MAINTENANCE CAPEX & INVESTMENTS
Slide 26: Maintenance CAPEX & plan for 2024-2026
MAINTENANCE CAPEX & PLAN FOR 2024 - 2026 Maintenance CAPEX in line with plan for 2023 and a new three-year plan remains on the same level as previous plan MAINTENANCE CAPEX HIGHLIGHTS EURm • Maintenance CAPEX in 2023 amounting to EUR 25.4m compared to a plan in the range of EUR 26-29m • Heavy year i
Slide 27: New investment & plan for 2024-2026
NEW INVESTMENT & PLAN FOR 2024 - 2026 Investment CAPEX above plan for the year mainly due to the Faroe Islands Project being ahead of schedule INVESTMENT CAPEX HIGHLIGHTS EURm • New investment CAPEX in 2023 amounting to EUR 17.8m compared to a plan in the range of EUR 12-15m • Main reason for the de
Slide 28: Outlook
—— Lae Wa OUTLOOK 4
Slide 29: Dividend proposal to the 2024 AGM
DIVIDEND PROPOSAL TO THE 2024 AGM Strong liquidity and capital ratios at year-end support proposed dividend DIVIDEND PROPOSAL 2024 DIVIDEND, SHARE CAPITAL REDUCTION AND SHARE BUY-BACK DEVELOPMENT EURm • The Board of Directors will propose to the AGM • A dividend of ISK 22.53 per share or a total of
Slide 30: Outlook
OUTLOOK STABLE HOME MARKET WHILE GLOBAL MARKET LANDSCAPE IS HIGHLY VOLATILE • Export volume from Iceland started to pick up in January with good seafood exports, considerable volume of recycling material to Europe and gradually increasing industrial production. The short-term outlook is positive, al
Slide 31: Thank you
THANK YOU
Slide 32: Appendix
APPENDIX
Slide 33: 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 34: EBIT analysis Q4
EBIT ANALYSIS Q4 Substantial decrease in EBIT compared to a record fourth quarter in 2022 EBIT DEVELOPMENT BY QUARTER EBIT BRIDGE BY BUSINESS ACTIVITY EURm EURm -68.0% 34.1 29.8 22.5 19.4 (14.3) 18.9 17.5 15.1 15.8 22.5 (0.1) 6.9 (4.1) 2.0 1.0 6.9 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2
Slide 35: Cash flow FY 2023
CASH FLOW FY 2023 Good cash flow from operations and strong liquidity HIGHLIGHTS • Strong cash flow from operations, amounting to EUR 82.0m in 2023, a decrease of EUR 50.0m from the previous year and EUR 2.2m higher than in 2021 • Main change, apart from lower EBITDA, are tax payments in 2023 for th
Slide 36: Liner segment analysis
LINER SEGMENT ANALYSIS Second best year in liner operations while Q4 results were below expectations LINER LINER EBITDA DEVELOPMENT BY YEAR 12M 12M 150 EURm 50.0% EUR thousand Q4 2023 Q4 2022 Change % Change % 140 2023 2022 130 119.5 45.0% 120 40.0% Revenue 142,597 165,295 (22,698) (13.7%) 597,813 6
Slide 37: Forwarding segment analysis
FORWARDING SEGMENT ANALYSIS Solid performance of International forwarding despite anticipated decrease from an extraordinary period FORWARDING FORWARDING EBITDA AND EBITDA MARGIN DEVELOPMENT BY YEAR EURm 12M 12M 50 30.0% EUR thousand Q4 2023 Q4 2022 Change % Change % 43.6 2023 2022 39.8 25.0% 40 Rev
Slide 38: 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 EURm (1.4) (9.7) (1.1) Lease liabilities by categories IFRS 16 – Impact on EBITDA 13% 5% 24% Q4 2023 Q4 2023 31% 56% 104.2 92.0 71% Buil
Slide 39: Strategic ownership in ElbFeeder
Strategic STRATEGICOWNERSHIP IN ELBFEEDER OWNERSHIP IN ELBFEEDER ElbFeeder ElbFeederisisstill benefitting benefitting from from thethe past period period of highof high charter charter rates rates and and longer longer fixtures fixtures • Eimskip owns 47.9% share in the vessel holding company ElbFee
Slide 40: Quarterly key figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2021 Revenue 827.531 201.479 201.967 209.516 214.569 1.070.626 255.654 292.173 283.115 239.684 882.717 Expenses 704.170 178.779 167.469 175.191 182.731 907.540 217.285 242.595
Slide 41: Shareholders
SHAREHOLDERS PAYMENTS TO SHAREHOLDERS* SHAREHOLDERS 26.1.2024 EURm Shareholder Shares % 45 1 Seley ehf. 55,589,385 33.12% 40 2 Gildi - lífeyrissjóður 21,239,660 12.65% 35 3 Lífeyrissjóður verzlunarmanna 20,482,040 12.20% 30 4 Birta lífeyrissjóður 8,109,481 4.83% 25 5 Stapi lífeyrissjóður 6,911,073 4
Slide 42: 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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