Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q1 2017 Earnings Presentation
32 slides from Eimskipafelag Islands Hf's earnings presentation, May 24, 2017
Slide 1: Revenue growth 29.7% and EBITDA EUR 9.3m in Q1 2017
REVENUE GROWTH 29.7% AND EBITDA EUR 9.3M IN Q1 2017 Q1 2017 - 24 May 2017 | 11.5% organic revenue growth and 18.2% from new acquisitions Adjusted EBITDA EUR 11.6 million, up 20.5% from previous year
Slide 2: Highlights
HIGHLIGHTS 2
Slide 3: Key highlights for Q1 2017
KEY HIGHLIGHTS FOR Q1 2017 Q1 2017 compared to Q1 2016 EBITDA EUR 9.3 m Revenue Adjusted EBITDA down 3.3% due to EUR 146.9 m fishermen strike and EUR 11.6 m up EUR 33.7 m non-recurring items of up 20.5% EUR 2.3 m Liner services Forwarding services Volume Volume up 3.0% up 28.9% Revenue Revenue Equit
Slide 4: Transported volume in Q1 2013 to 2017
TRANSPORTED VOLUME IN Q1 2013 TO 2017 Compared to Q1 in previous year LINER SERVICES FORWARDING SERVICES Volume index: 2010 volume at 100 4
Slide 5: Liner services volume
LINER SERVICES VOLUME Iceland, Faroe Islands, Norway and Trans-Atlantic 5
Slide 6: Forwarding services volume
FORWARDING SERVICES VOLUME Reefer and dry cargo forwarding 6
Slide 7: Revenue and EBITDA 2012 to 2016 by quarter
REVENUE AND EBITDA 2012 TO 2016 BY QUARTER Substantial revenue growth in Q1 2017 but EBITDA lower by EUR 2.3 million due to fishermen strike and other non-recurring items REVENUE EBITDA EUR million EUR million * Add-back of EUR 2.3 million non-recurring items in Q1 2017 7
Slide 8: Financial results
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Slide 9: Income statement Q1 2017
INCOME STATEMENT Q1 2017 Results affected by the fishermen strike EBITDA Revenue Expenses EUR 9.3 m down 3.3% EUR 146.9 m EUR 137.6 m Adjusted EBITDA up 29.7% up 32.8% EUR 11.6 m up 20.5% Depreciation and Net finance expense Net earnings amortization EUR 7.4 m EUR 1.5 m EUR 0.2 m compared to compare
Slide 10: Expenses bridge
EXPENSES BRIDGE 57% of increased cost affected by new acquisitions 10
Slide 11: China Forwarders Freight Index
CHINA FORWARDERS FREIGHT INDEX China - Europe 11
Slide 12: Salary bridge Q1 2017
SALARY BRIDGE Q1 2017 Salaries and related expenses increased by 19.5%, mainly due to ISK strengthening 12
Slide 13: Bunker price development
BUNKER PRICE DEVELOPMENT Bunker price started to rise in Q2 2016 Rotterdam heavy fuel price 13
Slide 14: Eimskip's sailing system
EIMSKIP’S SAILING SYSTEM Six sailing routes in the North Atlantic 14
Slide 15: Geographical split of revenue
GEOGRAPHICAL SPLIT OF REVENUE Europe has grown due to new forwarding acquisitions 15
Slide 16: Revenue by business segment
REVENUE BY BUSINESS SEGMENT Liner services and forwarding services 16
Slide 17: EBITDA by business segment
EBITDA BY BUSINESS SEGMENT Liner services and forwarding services – Adjusted EBITDA shows 65% liner contribution 17
Slide 18: Financial ratios 2013 to Q1 2017
FINANCIAL RATIOS 2013 TO Q1 2017 Low leverage and strong financial position NET DEBT / LTM-EBITDA NET DEBT AND EQUITY RATIO EUR million EUR million 18
Slide 19: Cash flow bridge Q1 2017
CASH FLOW BRIDGE Q1 2017 Affected by M&A investments 19
Slide 20: Capex 2013 to 2017
CAPEX 2013 TO 2017 Investment budget 2017 includes the first contract payment of the two new container vessels under construction, EUR 11.7 million 20
Slide 21: Ongoing projects and future development
ONGOING PROJECTS AND FUTURE DEVELOPMENT 21
Slide 22: The vessel fleet
THE VESSEL FLEET Changes in the first quarter Eimskip sold the 724 TEU vessel Brúarfoss in February 2017 Built in 1992 (25 years old) In February the company purchased the 698 TEU Sophia The vessel has been renamed Selfoss Built in 2008 (9 years old) In service as of 21 May Serves on t
Slide 23: The vessel fleet
OTHER OPERATIONS IN THE NORTH ATLANTIC THE VESSEL FLEET LANGFOSS Built 1991 21 vessels in operation, 13 own and 8 chartered Reefer (bulk) GT 3,625 STIGFOSS Built 1990 Reefer (bulk) GT 3,625 BLUE LINE GRAY LINE NORDVÅG GODAFOSS BLIKUR Built 1979 Built 1995 Built 2003 Reefer (bulk/TEU44) TEU 1,457 TEU
Slide 24: 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 25: Eimskip's forwarding network
EIMSKIP’S FORWARDING NETWORK Recent acquisitions strengthen Eimskip’s position and expand its logistics network Belgium / Mareco The Netherlands / Extraco A specialized niche reefer logistics A niche forwarding company in company in Antwerp Rotterdam Established in 2002 Established in 1991
Slide 26: CSI Group LLC
CSI GROUP LLC Container Services International Early in April, Eimskip strengthened its position in the container management market with an acquisition of a 51% share in CSI Group LLC Founded in 2011 Headquartered in Boston, USA Investment of about EUR 1.0 million Annual revenue around EUR
Slide 27: International alliance
INTERNATIONAL ALLIANCE Total weekly capacity by alliance/carrier in April 2017 27 Source: Alphaliner – Volume 2017 Issue 14
Slide 28: Eimskip and Royal Arctic Line
EIMSKIP AND ROYAL ARCTIC LINE Favorable financing of the two new container vessels secured An agreement for the cooperation between Eimskip and Royal Arctic Line the building period and 60% upon the estimated delivery in 2019 was signed in January 2017 Royal Arctic Line also signed a contract to
Slide 29: Unchanged EBITDA forecast for 2017
UNCHANGED EBITDA FORECAST FOR 2017 EBITDA in the range of EUR 57 to 63 million The first quarter was in line with the company’s expectations as outlined in February The EBITDA outlook for the year remains positive Volumes both in liner and forwarding services are growing in line with expectati
Slide 30: Questions
QUESTIONS 30
Slide 31: 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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