Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q1 2022 Earnings Presentation
35 slides from Eimskipafelag Islands Hf's earnings presentation, May 2022
Slide 1: Presentation of Q1 2022 Results
PRESENTATION PRESENTATIONOF OF Q1 Q12022 2022RESULTS RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q1 Highlights
Q1 HIGHLIGHTS STRONG START OF THE YEAR • Positive improvements in container liner QoQ and profitability at healthier level • Good volumes in import and export to and from Iceland • Trans-Atlantic services continue to perform very well • Strong financial improvement in Faroe Islands • Substantial inc
Slide 3: Market & Economy
MARKET & ECONOMY Opposing forces affecting global trade and the market for transportation CHARTER RATES (USD/DAY) • External environment has been favorable for the shipping industry • Shift from consumption of services to consumption of goods during Covid drove up demand for transportation of contai
Slide 4: Market & Economy: Geopolitical turmoil and volatility
MARKET & ECONOMY Geopolitical turmoil and high volatility posing a risk to the global economy BUNKER PRICES ROTTERDAM (USD/TON) • Some indications of a global slowdown already under way • The war in Ukraine is having various effects on the Global economy 1800 1000 • High commodity prices exaggeratin
Slide 5: Continued Integration and Streamlining
CONTINUED INTEGRATION AND STREAMLINING Strengthening foundation for efficient operation and customer service COMMON GLOBAL FORWARDING PLATFORM STRONGER OPERATIONS AND INCREASED FOCUS ON SALES DEVELOPMENT IN LAST MILE SERVICES Cargocan, Mareco and Eimskip China integrated into Merger of Ship-log and
Slide 6: Digital Transformation Projects
DIGITAL TRANSFORMATION PROJECTS Implementation increasing efficiency GROUP REPORTING & PLANNING TRANSFORMATION CONTAINER AND EQUIPMENT TRANSFORMATION • New cloud-based system implemented in stages in 2022 • Replacing one of the Company’s oldest systems (AS400) with a modern cloud- based solution • I
Slide 7: Digital Transformation Projects: Customer-centric solutions
DIGITAL TRANSFORMATION PROJECTS Implementation of customer-centric solutions CUSTOMER ENGAGEMENT (CE) NEW SAILING SCHEDULE CUSTOMER VIEW • Supporting the business units with new service, sales and marketing tools • Updated web-based sailing schedule • More seamless service and automation of tasks •
Slide 8: Projects That Support Sustainability
PROJECTS THAT SUPPORT SUSTAINABILITY Continue to integrate sustainability mindset into business and operational decision ENVIRONMENTAL THINKING IN NEWBUILDINGS PARTICIPATION FROM EMPLOYEES Eimskip is developing a new facility in the Eimskip emphasizes involving employees in Netherlands where the off
Slide 9: Operating Activities
VILJUM VIÐ VERA AÐ SÝNA MEÐHÖNDLUN Á FISKI UNDIR BERU LOFTI? ÞETTA ER hvort Skoða SAMTvið FLOTT MYND….. setjum aðra mynd eða láta vinna þessa aðeins OPERATING OPERATINGACTIVITIES ACTIVITIES
Slide 10: Liner Volume
LINER VOLUME Good volume growth in Iceland QoQ while volume in Norway remains stable despite suspension of Murmansk call from late February DEVELOPMENT CHANGE BY TRADE LANES 10
Slide 11: Container Liner Analysis
CONTAINER LINER ANALYSIS Meeting excess demand for Trans-Atlantic services by shifting capacity from Norway to the N-America route during the summer of 2022 VESSEL UTILIZATION TRANS-ATLANTIC VOLUME DEVELOPMENT 11
Slide 12: Forwarding Volume
FORWARDING VOLUME Contraction in reefer volume due to a continued shortage of equipment and space with deep sea lines VOLUME SPLIT VOLUME DEVELOPMENT 12
Slide 13: Financial Results
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Slide 14: Income Statement
INCOME STATEMENT Good financial results in Q1 despite cost increases and operational challenges HIGHLIGHTS • Positive improvements in container liner QoQ and profitability at a EUR thousand Q1 2022 Q1 2021 Change % healthier level Revenue 239,684 180,228 59,456 33.0% • International forwarding perfo
Slide 15: Revenue Analysis
REVENUE ANALYSIS Geographic diversification has improved a lot in recent years with Iceland now accounting for around 40% of total revenue GEOGRAPHICAL SPLIT OF REVENUE REVENUE DEVELOPMENT 15
Slide 16: Expense Analysis
EXPENSE ANALYSIS Market conditions, commodity prices and general inflation affecting cost EXPENSE SPLIT EXPENSE BRIDGE 16 *3rd party expense items include e.g. purchase of pre- and on-carriage, sea-transportation and terminal handling. 3rd party expenses are mainly variable expenses charged with a m
Slide 17: EBITDA Analysis
EBITDA ANALYSIS Improved performance of container liner QoQ and good results in forwarding services main drivers for EBITDA increase EBITDA DEVELOPMENT EBITDA BRIDGE BY BUSINESS ACTIVITY * EBITDA % 8.1% 9.4% 11.8% 6.4% 5.8% 10.0% 12.6% 8.5% 9.0% 14.1% 15.5% 12.4% 12.7% 17 *Q2 2021 adjusted for settl
Slide 18: EBIT Container Liner
EBIT CONTAINER LINER Positive volume and price developments however substantial cost increases as well due to global market conditions EBIT BRIDGE CONTAINER LINER SYSTEM SAILING SYSTEM Extensive and reliable sailing systems connecting Europe and North-America via Iceland 18
Slide 19: Balance Sheet
BALANCE SHEET Healthy balance sheet and leverage ratio below the long-term target of 2-3x HIGHLIGHTS EUR thousand 31.03.2022 31.12.2021 Change % • Very strong cash position of EUR 51.2 million at the end of Q1 • Unpaid dividends of EUR 17.5 million and share capital reduction of EUR Non-current asse
Slide 20: Cash Flow
CASH FLOW Strong liquidity position fully covering EUR 17.5m dividend and EUR 7.6m reduction in share capital paid in Q2 HIGHLIGHTS • Cash flow from operations is EUR 26.3 million in the quarter and Million EUR Q1 2022 Q1 2021 Change increases by EUR 18.1 million from same quarter last year EBITDA 3
Slide 21: Maintenance CAPEX & Investments
Er sama mynd til sem er ekki með Smyril line skipi þarna fremst á myndinni?????????????? Uppfæra mynd MAINTENANCE CAPEX & INVESTMENTS
Slide 22: Development in Maintenance CAPEX & New Investment
DEVELOPMENT IN MAINTENANCE CAPEX & NEW INVESTMENT Maintenance CAPEX on track and new investment projects on the horizon MAINTENANCE CAPEX HIGHLIGHTS • Maintenance CAPEX in Q1 amounts to EUR 4.1m • Whereof deferred maintenance CAPEX from 2021 EUR 0.8m • Budget for 2022 is EUR 22m • Sustainable mainte
Slide 23: Strategic Investment in the Faroe Islands
STRATEGIC INVESTMENT IN THE FAROE ISLANDS An investment in new facilities for Eimskip’s operations in Thorshavn has been approved • Eimskip runs extensive operations in the Faroe Islands under Faroe Ship • Import, export, forwarding, warehousing, cold storage, trucking, agency • Operated under the s
Slide 24: Outlook
Uppfæra mynd OUTLOOK OUTLOOK
Slide 25: Outlook
OUTLOOK HIGHLIGHTS OF SECOND QUARTER 2022 SO FAR OUTLOOK • Overall, a strong start of the quarter with management forecast for April above • Optimistic for the volume and margins in liner services for the coming months last year • High global fish and commodity prices coupled with strong demand favo
Slide 26: Thank You
THANK YOU 26
Slide 27: Appendix
APPENDIX 27
Slide 28: 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 focus on frozen and chilled commodities ABOUT SUSTAINABILITY KPI’
Slide 29: Results by Quarter
RESULTS BY QUARTER As reported EUR thousand OPERATING RESULTS Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Revenue 239,684 254,748 236,607 211,134 180,228 Expenses 209,298 223,269 199,831 191,639 163,919 Settlement with ICA - - - 10,219 - EBITDA 30,386 31,479 36,776 19,495 16,309 EBIT 15,088 17,471 23,81
Slide 30: Segment Analysis - Liner Services
SEGMENT ANALYSIS - LINER SERVICES Performance of the container liner main driver for improved results HIGHLIGHTS • Turnaround in performance of liner services from same quarter last EUR thousand Q1 2022 Q1 2021 Change % year Revenue 141,619 101,824 39,795 39.1% • Container liner with a very strong s
Slide 31: Segment Analysis - Forwarding Services
SEGMENT ANALYSIS - FORWARDING SERVICES Strong performance in a market characterized by high global prices and capacity constraints HIGHLIGHTS • Forwarding services continue to benefit from higher price levels and EUR thousand Q1 2022 Q1 2021 Change % improved margins Revenue 98,065 78,304 19,761 25.
Slide 32: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Lease liabilities mainly consist of chartered vessels and leased land IFRS 16 LEASE LIABILITIES ANALYSIS HIGHLIGHTS • Limited change in lease liabilities over the course Lease liabilities of Q1 • IFRS 16 effect on EBITDA in Q1 2022 amounts to EUR 8.4m compared to EUR 4.1m
Slide 33: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 10.5.2022 EUR ‘000 Shareholder Shares % Samherji Holding ehf. 56,748,532 32.79% Lífeyrissjóður verzlunarmanna 20,667,406 11.94% Gildi - lífeyrissjóður 18,080,269 10.45% Birta lífeyrissjóður 8,155,138 4.71% Lífeyrissj.starfsm.rík. A-deild
Slide 34: 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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