Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q3 2024 Earnings Presentation
36 slides from Eimskipafelag Islands Hf's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 Results
Q3 2024 RESULTS 5 November 2024 Vilhelm Már Thorsteinsson, CEO Rósa Guðmundsdóttir, CFO
Slide 2: Q3 Highlights
Q3 HIGHLIGHTS Good results with seasonal high activity across the group
Slide 3: The Only Pan-Arctic Ocean Carrier
THE ONLY PAN-ARCTIC OCEAN CARRIER Strong connections to international markets via global network Leading transportation company in the North-Atlantic providing container and reefer liner services 3
Slide 4: Q3 Highlights: Liner Volume
Q3 HIGHLIGHTS LINER VOLUME Good volume in Liner in the quarter which was the highest since third quarter 2022 LINER VOLUME DEVELOPMENT BY QUARTER HIGHLIGHTS Teus ‘000 4.9% • Good volume in Liner driven by strong export from Iceland, good growth in Trans-Atlantic and in Norway 54.7 51.5 51.7 53.2 • C
Slide 5: Q3 Highlights: Trans-Atlantic
Q3 HIGHLIGHTS TRANS-ATLANTIC Good growth QoQ with rates increasing although still lower than last year TRANS-ATLANTIC VOLUME DEVELOPMENT BY QUARTER DREWRY WORLD CONTAINER INDEX DEVELOPMENT 31 OCTOBER 2024 Teus ‘000 $US/40ft container 6.8% 12,000 9.4 10,000 2.3 7.9 7.7 7.6 7.7 7.5 0.9 7.2 1.0 1.0 0.7
Slide 6: Specialized in Worldwide Freight Forwarding Services
SPECIALIZED IN WORLDWIDE FREIGHT FORWARDING SERVICES 58 locations in 20 countries across four continents Focus on frozen and chilled commodities 6
Slide 7: Q3 Highlights: Forwarding Volume
Q3 HIGHLIGHTS FORWARDING VOLUME Good result in the Forwarding segment with higher global freight rates despite marginal decrease in volume VOLUME DEVELOPMENT BY QUARTER HIGHLIGHTS Teus ‘000 -2.6% • Generally good volume in international Forwarding with higher global freight rates compared to last ye
Slide 8: Q3 Highlights: Forwarding Volume
Q3 HIGHLIGHTS FORWARDING VOLUME Good result in the Forwarding segment with higher global freight rates despite marginal decrease in volume SPLIT OF FORWARDING VOLUME YTD VOLUME SPLIT BY GEOGRAPHY Teus ‘000 60.0 Thousands 50.0 48.3 1.5 42.3 43.1 6.5 41.4 41.2 1.4 1.4 40.0 2.0 1.9 5.7 5.4 4.7 4.1 30.0
Slide 9: Global Shipping Market
GLOBAL SHIPPING MARKET Global freight rates surged during the first half of the year but have been coming down since beginning of Q3 $US/40ft container DREWRY WORLD CONTAINER INDEX 12,000 • The global shipping market is characterized by significantly higher volatility than Eimskip’s 10,000 home mark
Slide 10: Financial Results
FINANCIAL RESULTS FINANCIAL RESULTS Eimskip is a proud supporter of youth and sport activities in our communities
Slide 11: Q3 Financials: Income Statement
Q3 FINANCIALS INCOME STATEMENT Q3 AND 9M 2024 Good results in Q3 with seasonal high activity across the group and continued rebound from slow start at the beginning of the year EUR thousand Q3 2024 Q3 2023 Change % 9M 2024 9M 2023 Change % Revenue 220,596 201,967 18,629 9.2% 626,100 626,052 48 0.0%
Slide 12: Q3 Financials: Revenue Analysis
Q3 FINANCIALS REVENUE ANALYSIS Good revenue growth resulting in the best quarter this year REVENUE DEVELOPMENT BY QUARTER* HIGHLIGHTS EURm • Revenue increased by 9.2% from last year and amounted to EUR 220.6m in the quarter • Liner revenues in the quarter were the strongest this year albeit a margin
Slide 13: Q3 Financials: Expense Analysis
Q3 FINANCIALS EXPENSE ANALYSIS Increase in expenses driven by cost of 3rd party services due to increase in global freight rates EXPENSE CATEGORIES DEVELOPMENT BY QUARTER HIGHLIGHTS EURm • Expenses amounted to EUR 188m, an increase of EUR 20.2m, whereof cost of third- party logistics services was EU
Slide 14: Q3 Financials: EBITDA Analysis
Q3 FINANCIALS EBITDA ANALYSIS EBITDA on a good level and continued rebound from beginning of the year EBITDA DEVELOPMENT BY QUARTER HIGHLIGHTS EURm • Liner EBITDA amounted to EUR 22.9m, EUR 2.1m down from previous year • Healthy EBITDA and EBIT ratio calculated at 16.2% and 7.6% respectively • Conti
Slide 15: Q3 Financials: EBIT Analysis
Q3 FINANCIALS EBIT ANALYSIS EBIT on a good level and continued rebound from beginning of the year EBIT DEVELOPMENT BY QUARTER EBIT BRIDGE BY BUSINESS ACTIVITY EURm EURm 34.1 -1.1% 0 0 0 22.5 19.4 18.9 18.7 15.8 8.6 6.9 0 ontainer liner Reefer liner orwarding omes c ther 0 -0.9 system system opera on
Slide 16: Cash Flow and Balance Sheet
Q3 FINANCIALS CASH FLOW AND BALANCE SHEET Seasonality with increased activity affecting cash flow from operations CASH FLOW BRIDGE Q3 HIGHLIGHTS • Cash flow from operations amounted to EUR 11.8m in the quarter, a decrease of EUR 10.9m QoQ, mainly attributable to changes in net working capital due to
Slide 17: Development in Maintenance & Investment CAPEX
Q3 FINANCIALS DEVELOPMENT IN MAINTENANCE & INVESTMENT CAPEX Maintenance CAPEX in line with plan while new investment expected to be at the lower end of the full year plan MAINTENANCE CAPEX HIGHLIGHTS EURm • Maintenance CAPEX amounted to EUR 6.5m in Q3, stands at EUR 18.9m after first nine months, an
Slide 18: Operating Activities
operating activities OPERATING ACTIVITIES Eimskip places great emphasizes on safety and preventions and is one of the main sponsors of the Icelandic search and Rescue association (ICE-SAR)
Slide 19: Transport within Iceland
3 TRANSPORT WITHIN ICELAND
Slide 20: 43% of Volume within Iceland Is via Coastal Sailings
43% OF TOTAL EIMSKIP’S VOLUME WITHIN ICELAND IS VIA COASTAL SAILINGS TRUCKING SERVICE COASTAL SERVICE 130 DELIVERY LOCATIONS 7 HARBORS AROUND ICELAND AROUND ICELAND Daily Trucks Weekly service service 224 57% of total volume 43% of total volume by land transport by sea transport MAIN CATEGORIES MAIN
Slide 21: Cruise Agency
4 Cruise agency CRUISE AGENCY
Slide 22: Cruise Agency at the Forefront
CRUISE AGENCY AT THE FOREFRONT # 31 PORTS # 2-7 PORTS CALLS DURING EACH VOYAGE # 315,OOO PASSENGERS IN REYKJAVIK GLOBAL CRUISE SECTOR ICELANDIC CRUISE SECTOR GÁRA CRUISE AGENCY The cruise industry has been one of the Iceland's cruise sector is growing due to its unique natural attractions which appe
Slide 23: Outlook
outlook OUTLOOK TVG-Zimsen supports the Icelandic Cancer Society by means of transportation and distribution of the Pink Ribbon
Slide 24: Outlook
OUTLOOK Promising outlook for the remainder of the year considering traditional seasonality LINER Expecting good volume in all major commodity groups other than vehicles in imports to Iceland SERVICES Export from Iceland is expected to be on a robust level on back of strong volume in salmon combined
Slide 25: Thank You
2 Thank you THANK YOU Eimskip has supported the Christmas in a Shoebox program for children in Ukraine for 20 years by means of transportation
Slide 26: Appendix
APPENDIX 7 APPENDIX
Slide 27: 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 28: 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 -3.5% 810.8 801.6 797.9 794.2 788.3 784.4 770.2 87% 87% 87% 85% 83% 83%
Slide 29: Cash Flow Q3 and 9M 2024
CASH FLOW Q3 AND 9M 2024 EUR million Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change EBITDA 32.9 34.5 1.6 70.7 100.7 (30.0) Working capital changes & other adjustments (12.6) (1.2) (11.4) (4.9) (5.7) 0.8 Paid taxes (2.0) (1.3) (0.7) (8.6) (2.3) (6.3) Maintenance CAPEX (6.5) (10.9) 4.4 (18.9) (21.8) 2.
Slide 30: Balance Sheet
BALANCE SHEET EUR thousand 30.9.2024 31.12.2023 Change % Non-current assets 459,696 445,030 14,667 3.3% Fixed assets 306,536 308,326 (1,790) (0.6%) Right-of-use assets 96,228 89,373 6,855 7.7% Other non-current assets 56,932 47,331 9,602 20.3% Current assets 195,621 173,809 21,812 12.5% Trade and ot
Slide 31: Liner Segment
LINER SEGMENT Good improvements in Liner results although affected by lower TA rates compared to previous year and softened demand in Iceland LINER EBITDA DEVELOPMENT BY QUARTER EURm EUR thousand Q3 2024 Q3 2023 Change % 9M 2024 9M 2023 Change % 17.0% 15.9% Revenue 144.353 147.027 (2.674) (1,8%) 420
Slide 32: Forwarding Segment
FORWARDING SEGMENT Good performance of International Forwarding with improved margins QoQ FORWARDING EBITDA AND EBITDA MARGIN DEVELOPMENT BY QUARTER Textthousand EURm EUR Q3 2024 Q3 2023 Change % 9M 2024 9M 2023 Change % Revenue 88.396 66.557 21.839 32,8% 243.995 206.990 37.005 17,9% 10.0 10 9.5 16%
Slide 33: Quarterly Key Figures
QUARTERLY KEY FIGURES OPERATING RESULTS ('000 EUR) 9M 2024 Q3 2024 Q2 2024 Q1 2024 2023 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Revenue 626,100 220,596 209,607 195,897 827,531 201,479 201,967 209,516 214,569 1,070,626 255,654 292,173 283,115 239,684 Expenses 555,419 187,
Slide 34: Shareholder Information
SHAREHOLDER INFORMATION PAYMENTS TO SHAREHOLDERS* SHAREHOLDERS 23. OCTOBER 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 21,122,040 12.7% 4 Birta lífeyrissjóður 8,604,231 5.2% 13 12.7 1.3 5 Stapi lífeyr
Slide 35: Disclaimer
DISCLAIMER Information contained in this presentation is based on sources that Statements contained in this presentation that refer to the ompany’s Eimskipafélag Íslands hf. “Eimskip” or the “ ompany” considers reliable estimated or anticipated future results or future activities are forward- at eac
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Eimskipafélag Íslands hf. — Q3 2024 Earnings Presentation on 6ix