Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q2 2024 Earnings Presentation
34 slides from Eimskipafelag Islands Hf's earnings presentation, Aug 20, 2024
Slide 1: Q2 2024 Results
Q2 2024 RESULTS 20 August 2024 Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q2 Highlights
Q2 HIGHLIGHTS Acceptable results as business picked up after a challenging first quarter LINER Container liner revenue decreased from previous year mainly due to a slight decrease in total volume, lower Trans-Atlantic rates, different cargo mix in export to Iceland and a four-week strike in the Faro
Slide 3: Sustainability at the Forefront
SUSTAINABILITY AT THE FOREFRONT GREEN ALUMINUM NEW HARBOR CRANE LEADERSHIP PROGRAM Norðural, a valued customer of Eimskip, is Eimskip took delivery of a new electric Eimskip graduated the fourth class of the known for producing a high-quality mobile harbor crane in Sundahöfn terminal Company’s Inter
Slide 4: Global Employee Engagement
GLOBAL Our organization does a good job of communicating the goals and My colleagues are willing to help each other with work if needed I feel that my opinions are taken into account at work EMPLOYEE strategies set by senior leadership ENGAGEMENT 7.3 8.4 7.9 +0.3 True Benchmark At True Benchmark +0.
Slide 5: Framtíðarskipulag Sundahafnar
FRAMTÍÐARSKIPULAG SUNDAHAFNAR Sérstaða Íslands og kröfur viðskiptavina í sjóflutningum krefjast skilvirkni og sveigjanleika í hafnarþjónustu LANDFRÆÐILEG SÉRSTAÐA ÍSLANDS • Staða Íslands sem eyju í Norður-Atlantshafi takmarkar flutningsmáta í millilandaflutningum samanborið við helstu viðskiptalönd
Slide 6: Framtíðarskipulag Sundahafnar
FRAMTÍÐARSKIPULAG SUNDAHAFNAR Samþætting sjóflutninga, hafnarþjónustu og vörudreifingar eykur sveigjanleika og áreiðanleika í aðfangakeðju Íslands að mati Portwise SKILVIRK OG AÐGENGILEG HAFNARÞJÓNUSTA EIMSKIPS Í SUNDAHÖFN • Eimskip hefur um árabil boðið skilvirka hafnarþjónustu með hraða, áreiðanle
Slide 7: Úttekt Hagrannsókna á minnisblaði Analytica
ÚTTEKT HAGRANNSÓKNA Á MINNISBLAÐI ANALYTICA Niðurstaða Hagrannsókna er sú að vankantar minnisblaðsins séu svo alvarlegir að það sé ónothæft FORSAGAN HELSTU NIÐURSTÖÐUR SKÝRSLU HAGRANNSÓKNA • Í febrúar birti ráðgjafarfyrirtækið Analytica ehf. minnisblað AÐFERÐAFRÆÐI um mat á meintu tjóni vegna samkep
Slide 8: Operating Activities
1 operating activities OPERATING ACTIVITIES
Slide 9: Global Shipping Market
GLOBAL SHIPPING MARKET Global freight rates surged in Q2 amid growing demand and tight capacity due to the Red-Sea situation and growing geopolitical tensions KEY HIGHLIGHTS DREWRY WORLD CONTAINER INDEX 12,000 • Drewry World Container Index, which measures changes in container spot rates across eigh
Slide 10: Liner Volume
LINER VOLUME Marginal decrease YoY despite strike in the Faroe Islands and a substantial reduction in vehicle imports to Iceland LINER VOLUME DEVELOPMENT BY QUARTER CHANGE BY TRADE LANES Teus ‘000 Teus ‘000 -1.2% 54.2 54.7 (0.6) 51.5 51.7 51.4 (1.1) 1.1 (0.6) (0.1) 0.1 0.6 50.6 50.8 51.0 48.9 51.7 5
Slide 11: Trans-Atlantic Analysis
TRANS-ATLANTIC ANALYSIS Good growth QoQ along with an improved west/east balance after a period of softened demand TRANS-ATLANTIC VOLUME DEVELOPMENT BY QUARTER DREWRY WORLD CONTAINER INDEX DEVELOPMENT Teus ‘000 $US/40ft container 12,000 -1.6% 9.2 9.4 10,000 1.5 7.9 2.3 7.7 7.6 7.5 8,000 0.9 7.2 1.0
Slide 12: Container Liner Analysis
CONTAINER LINER ANALYSIS On track in reducing bunker consumption with fewer sailed miles and increased slow steaming following strategic sailing system changes TTM SAILED MILES DEVELOPMENT VESSEL UTILIZATION Thousand Miles (‘000) -2.2% 91% 810.8 801.6 797.9 794.2 788.3 784.4 87% 87% 87% 85% 83% 83%
Slide 13: Forwarding Volume
FORWARDING VOLUME Growth YoY but volume decreases QoQ partly due to global market conditions marked by tight capacity VOLUME DEVELOPMENT BY QUARTER VOLUME SPLIT BY GEOGRAPHY Teus ‘000 3.9% 2.6% 3.2% 3.1% 3.3% 4.1% 12.9% 13.4% 13.6% 12.6% 11.9% 48.3 35.9% 35.5% 35.8% 36.7% 39.9% 45.1 42.7 42.4 43.2 4
Slide 14: Financial Results
FINANCIAL RESULTS FINANCIAL RESULTS
Slide 15: Income Statement Q2 2024
INCOME STATEMENT Q2 2024 Acceptable results given softened demand in Iceland and a strike in the Faroe Islands while International Forwarding performed well HIGHLIGHTS EUR thousand Q2 2024 Q2 2023 Change % • Revenue remained at same level as last year and amounted to EUR 210m in the quarter • Liner
Slide 16: Revenue Analysis
REVENUE ANALYSIS Revenue unchanged between years with a decrease in Liner revenue offset by increased Forwarding revenue REVENUE DEVELOPMENT BY QUARTER* GEOGRAPHICAL SPLIT EURm 5.3% 3.9% 3.2% 3.4% 3.7% 4.0% 5.9% 7.5% 8.9% 10.4% 292.2 21.3% 19.2% 20.0% 21.6% 283.1 21.5% 6.5% 6.1% 7.1% 0.1% 8.4% 6.0%
Slide 17: Expense Analysis
EXPENSE ANALYSIS Increase in expenses driven by cost of 3rd party services due to rate development in the global shipping market EXPENSE BRIDGE EXPENSE CATEGORIES EURm 7.8% 6.8% 6.6% 6.4% 6.3% 21.0% 21.0% 20.6% 20.6% 20.3% 11.6% 9.5% 9.5% 10.9% 11.2% 7.5% 8.5% 8.9% 8.5% 7.9% 200 10.8 0.6 0.9 (0.4) 1
Slide 18: EBITDA Analysis
EBITDA ANALYSIS Lower Trans-Atlantic rates combined with a strike in the Faroe Islands and softened imports to Iceland affected Container liner results EBITDA DEVELOPMENT BY QUARTER EBITDA BRIDGE BY BUSINESS ACTIVITY EURm EURm 49.6 -31.7% 44.8 38.4 (11.4) 34.3 34.5 (1.0) 31.8 0.1 (0.1) 1.5 22.7 23.5
Slide 19: EBIT Analysis
EBIT ANALYSIS Lower Trans-Atlantic rates combined with a strike in the Faroe Islands and softened imports to Iceland affected Container liner results EBIT DEVELOPMENT BY QUARTER EBIT BRIDGE BY BUSINESS ACTIVITY EURm EURm 34.1 -55.9% 29.8 22.5 19.4 18.9 15.8 8.6 6.9 -0.9 Q2 2022 Q3 2022 Q4 2022 Q1 20
Slide 20: Balance Sheet
BALANCE SHEET Healthy balance sheet with seasonal increase in working capital as well as higher lease liabilities HIGHLIGHTS EUR thousand 30.6.2024 31.12.2023 Change % • Right-of-use assets and lease liabilities increased due to extended lease on buildings and time-chartered vessel Non-current asset
Slide 21: Cash Flow
CASH FLOW Focused working capital management supporting good cash flow from operations HIGHLIGHTS EUR million Q2 2024 Q2 2023 Change • Cash flow from operations amounted to EUR 22.7m in the quarter, an increase of EBITDA 23.5 34.3 (10.8) EUR 3.1m from same period last year, mainly attributable to de
Slide 22: 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 HIGHLIGHTS EURm • Maintenance CAPEX in the first six months amounted to EUR 12.4m and is on track according to the published plan for full year 2024 of EUR 26-29m •
Slide 23: Outlook
OUTLOOK Expecting solid performance in the third quarter LINER Vehicle imports to Iceland remain on a weak level with signs of softened demand in other categories such as building materials, while foodstuff and general cargo imports demonstrate robustness SERVICES Generally positive outlook in expor
Slide 24: Thank You
2 Thank you THANK YOU
Slide 25: Appendix
3 APPENDIX APPENDIX
Slide 26: 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 27: Liner Segment Analysis
LINER SEGMENT ANALYSIS Liner results marked by lower TA rates compared to previous year combined with a strike in the Faroes and softened demand in Iceland LINER EBITDA DEVELOPMENT BY QUARTER EURm EUR thousand Q2 2024 Q2 2023 Change % 6M 2024 6M 2023 Change % 16.6% 17.0% Revenue 142,426 155,809 (13,
Slide 28: Forwarding Segment Analysis
FORWARDING SEGMENT ANALYSIS Good performance of International Forwarding with improved margins QoQ FORWARDING EBITDA AND EBITDA MARGIN DEVELOPMENT BY QUARTER Textthousand EURm EUR Q2 2024 Q2 2023 Change % 6M 2024 6M 2023 Change % 9.5 8.4 8.4 Revenue 83,399 68,068 15,331 22.5% 155,599 140,433 15,166
Slide 29: Income Statement and Cash Flow 6M 2024
INCOME STATEMENT AND CASH FLOW 6M 2024 INCOME STATEMENT CASH FLOW EUR thousand 6M 2024 6M 2023 Change % EUR million 6M 2024 6M 2023 Change Revenue 405,504 424,085 (18,581) (4.4%) EBITDA 37.7 66.2 (28.5) Expenses 367,766 357,922 9,844 2.8% Working capital changes & other adjustments 7.7 (4.5) 12.2 Sa
Slide 30: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Lease liabilities mainly consist of leased buildings and land and chartered vessels DEPRECIATION & AMORTIZATION DEVELOMPENT LEASE LIABILITIES DEVELOPMENT EURm EURm 15.6 15.8 15.1 14.9 14.9 1.6 1.0 1.0 103.4 105.1 1.0 1.0 99.5 98.0 4.0 6.3 4.2 6.3 6.1 6.4 6.4 4.2 9.1 92.0
Slide 31: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) 6M 2024 Q2 2024 Q1 2024 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Revenue 405,504 209,607 195,897 827,531 201,479 201,967 209,516 214,569 1,070,626 255,654 292,173 283,115 239,684 Expenses 367,766 186,112 181,654 704,
Slide 32: Shareholder Information
SHAREHOLDER INFORMATION PAYMENTS TO SHAREHOLDERS* SHAREHOLDERS 13.8.2024 EUR Title Shareholder Shares % 1 Seley ehf. 55,589,385 33.5% 2 Gildi - lífeyrissjóður 22,026,722 13.3% 5.4 3 Lífeyrissjóður verzlunarmanna 21,422,040 12.9% 4 Birta lífeyrissjóður 8,554,231 5.2% 13 12.7 1.3 5 Stapi lífeyrissjóðu
Slide 33: Disclaimer
DISCLAIMER Information contained in this presentation is based on sources that Statements contained in this presentation that refer to the Company’s Eimskipafélag Íslands hf. (“Eimskip” or the “Company”) considers reliable estimated or anticipated future results or future activities are forward- at
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Eimskipafélag Íslands hf. — Q2 2024 Earnings Presentation on 6ix