Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q2 2023 Earnings Presentation
31 slides from Eimskipafelag Islands Hf's earnings presentation, Aug 15, 2023
Slide 1: Q2 2023 Results
Q2 2023 RESULTS 15 AUGUST 2023 Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q2 Highlights
Q2 HIGHLIGHTS SOLID RESULTS BASED ON STRONG FOUNDATION • Overall a good quarter with most business units performing well, despite a significant change in international market conditions compared to the previous year • Liner services continue to deliver sound results on back of excellent service and
Slide 3: Sustainability at Eimskip: Employee engagement drives higher performance
SUSTAINABILITY AT EIMSKIP Employee engagement drives higher performance TRAINING COURSE IN SHIP MANAGEMENT INCREASED EMPLOYEE ENGAGEMENT ENGAGEMENT SATISFACTION 8.1 +0.2 7.6 +0.1 8.1 +0.2 since since since 2022 0.6 over 0.3 over 2022 0.5 over 2022 True Benchmark® True Benchmark® True Benchmark® On t
Slide 4: Inclusion of the shipping industry into EU ETS in 2024-2026
INCLUSION OF THE SHIPPING INDUSTRY INTO EU ETS IN 2024-2026 Eimskip prepares for the upcoming implementation of the EU directive HIGHLIGHTS • The EU Green Deal was approved in 2019 with the aim of reaching net zero greenhouse gas emissions in 2050 • “Fit for 55 project” is the goal of reducing emiss
Slide 5: Eimskip is committed to reduce emissions
EIMSKIP IS COMMITTED TO REDUCE EMISSIONS Various initiatives already taken with further measures being explored GOOD PROGRESS IN RECENT YEARS FURTHER MEASURES TO BE TAKEN IN COMING YEARS • Adjustments to the sailing system to optimize routes and operations • Further short-term initiatives will inclu
Slide 6: Operating Activities
OPERATING ACTIVITIES |
Slide 7: Liner Volume
LINER VOLUME Slight decrease in liner volume caused by less export out of Iceland and softened Trans-Atlantic demand LINER VOLUME DEVELOPMENT CHANGE BY TRADE LANES Volume (Teus ‘000) Volume (Teus '000) -4.8% 0.8 (1.3) (0.3) 0.3 55.0 53.6 54.2 54.7 53.0 51.7 (1.6) (0.3) (0.1) 51.5 50.6 48.0 54.2 51.7
Slide 8: Trans-Atlantic Analysis
TRANS-ATLANTIC ANALYSIS Trans-Atlantic volume at a new level compared to pre-Covid while recent rate decreases affect revenue TRANS-ATLANTIC VOLUME DEVELOPMENT TRANS-ATLANTIC SHARE OF REVENUE Volume (Teus ‘000) 12 10% -17.7% 9% 10 8% 8 7% 6% 6 5% 4% 4 3% 2 2% 1% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 9: Forwarding Volume
FORWARDING VOLUME Forwarding volume decreases slightly YoY while EBITDA margin is on a good level VOLUME SPLIT VOLUME DEVELOPMENT Volume (Teus ‘000) 2% 4% -6.6% 13% 13% 50.2 48.5 46.4 45.1 41.8 42.7 42.0 40.8 49% 39.8 Q2 2023 Q2 2022 52% 36% 31% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 202
Slide 10: Financial Results
FINANCIAL RESULTS
Slide 11: Income Statement
INCOME STATEMENT Solid results despite anticipated decrease from previous year due to changes in market conditions HIGHLIGHTS EUR thousand Q2 2023 Q2 2022 Change % • Revenue decreases by EUR 73.6m or 26% and total expenses decrease by EUR 63.2m or 27% from previous year Revenue 209,516 283,115 (73,5
Slide 12: Revenue Analysis
REVENUE ANALYSIS Considerable decrease in revenue driven by change in global freight rates which mainly affects Forwarding and Trans-Atlantic GEOGRAPHICAL SPLIT AND CURRENCY SPLIT OF REVENUE REVENUE DEVELOPMENT EURm 400 5% 4% 6% 12% -26.0% 350 22% 43% Q2 2023 53% Q2 2022 25% 300 292.2 283.1 7% 9% 25
Slide 13: Expense Analysis
EXPENSE ANALYSIS Expenses decrease substantially YoY due to lower global freight rates EXPENSE CATEGORIES & CURRENCY SPLIT EXPENSE BRIDGE EURm 7% 5% 15% 21% Q2 2023 52% 9% Q2 2022 62% 9% 12% (57.4) 8% (7.7) 2.0 (1.9) 1.8 238.4 7% 17% 5% 27% 36% 3% 175.2 22% 6M 2023 6M 2022 18% 30% 35% Q2 2022 3rd pa
Slide 14: EBITDA Analysis
EBITDA ANALYSIS Good performance of most business units despite a decrease compared to the strong results in previous year EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY EURm -23.3% EURm 49.6 (5.6) (0.8) 44.8 (2.7) (1.7) 0.4 38.4 36.8 34.3 31.5 31.8 29.7 30.4 44.8 34.3 Q2* 2021 Q3 2021 Q4 202
Slide 15: Cash Flow
CASH FLOW Good cash flow from operations and substantial payments to shareholders in Q2 HIGHLIGHTS • Cash flow from operations amounted to EUR 19.6m in the quarter, a decrease of EUR million Q2 2023 Q2 2022 Change EUR 9.1m from same period last year EBITDA 34.3 44.8 (10.4) • In addition to regular i
Slide 16: 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 NEW INVESTMENT EURm EURm 3.0 39.8 26.0 24.2 3.0 12.9 13.1 10.9 12.0 9.7 6.2 2.3 2020 2021 2022 2023 6M 2023 Plan 2020 2021 2022 2023 6M 2023 Plan 16
Slide 17: Outlook
OUTLOOK GENERALLY STABLE OUTLOOK FOR COMING MONTHS • General positivity surrounding Eimskip’s home market in the North-Atlantic • Robust Icelandic economy on back of record tourist season which supports import and domestic services although affected by inflationary pressure and salary increases • Ex
Slide 18: Thank You
THANK YOU
Slide 19: Appendix
APPENDIX
Slide 20: 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 21: Container Liner Analysis
CONTAINER LINER ANALYSIS Slight decrease in utilization compared to previous year due to less export out of Iceland and softened Trans-Atlantic demand VESSEL UTILIZATION 91% 91% 91% 87% 87% 87% 88% 84% 85% 64% 64% 61% 62% 60% 59% 60% 59% 58% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1
Slide 22: Historical Liner Volume Data
HISTORICAL LINER VOLUME DATA Volume numbers presentation was changed from tons to teus in Q1 2023 LINER VOLUME IN TONS LINER VOLUME IN TEUS Volume (Tons ‘000) Volume (Teus ‘000) 579 564 594 569 573 555 552 540 541 546 534 528 524 515 528 506 497 517 526 509 487 461 55 54 55 53 53 55 54 54 55 49 51 4
Slide 23: Segment Analysis
SEGMENT ANALYSIS Sound performance of both business segments LINER FORWARDING EUR thousand Q2 2023 Q2 2022 Change % 6M 2023 6M 2022 Change % EUR thousand Q2 2023 Q2 2022 Change % 6M 2023 6M 2022 Change % Revenue 155,809 190,556 (34,747) (18.2%) 308,189 347,041 (38,852) (11.2%) Revenue 68,068 129,931
Slide 24: EBIT Analysis
EBIT ANALYSIS Solid EBIT results in an international market landscape that has changed significantly from previous year EBIT DEVELOPMENT EBIT BRIDGE BY BUSINESS ACTIVITY EURm EURmm -34.9% 34.1 29.8 (5.8) 23.8 (0.7) 22.5 19.4 (2.7) (1.7) 0.4 17.5 17.5 15.1 15.8 29.8 19,4 Q2* 2021 Q3 2021 Q4 2021 Q1 2
Slide 25: Income Statement and Cash Flow 6M 2023
INCOME STATEMENT AND CASH FLOW 6M 2023 EUR thousand 6M 2023 6M 2022 Change % EUR million 6M 2023 6M 2022 Change EBITDA 66.2 75.1 (9.0) Revenue 424,085 522,799 (98,714) (18.9%) Working capital changes & other adjustments (4.5) (10.1) 5.6 Expenses 357,922 447,660 (89,738) (20.0%) Salary and related ex
Slide 26: Balance Sheet
BALANCE SHEET Strong financial position and leverage remains below long-term target HIGHLIGHTS • Decrease in cash by EUR 23.6m from year-end 2022 due to dividend and share EUR thousand 30.06.2023 31.12.2022 Change % capital reduction, a total of EUR 35.4m, paid in Q2 Non-current assets 438,028 434,0
Slide 27: 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 Lease liabilities by categories IFRS 16 – Impact on EBITDA (2.8) 0.0 (0.1) 0.2 13% 6% 18% 35% 3% 104.2 103.4 Q2 2023 Q2 2023 37% 15
Slide 28: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) Q2 2023 Q1 2023 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2021 Q4 2021 Q3 2021 Q2 2021 Revenue 209,516 214,569 1,070,626 255,654 292,173 283,115 239,684 882,717 254,748 236,607 211,134 Expenses 175,191 182,731 907,540 217,285 242,595 238,362 209,298 778,
Slide 29: Shareholders
SHAREHOLDERS PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 9.8.2023 EURm Shareholder Shares % 40 1 Seley ehf. 55,589,385 33.12% 35 2 Lífeyrissjóður verzlunarmanna 21,435,040 12.77% 30 3 Gildi - lífeyrissjóður 21,237,427 12.65% 25 4 Birta lífeyrissjóður 8,054,481 4.80% 20 5 Stapi lífeyrissjóður 7,027,516 4.1
Slide 30: 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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Eimskipafélag Íslands hf. — Q2 2023 Earnings Presentation on 6ix