Slide 1: Q2 2017 EBITDA in line with expectations
Q2 2017 EBITDA IN LINE WITH EXPECTATIONS Q2 2017 - 25 August 2017 | Unchanged EBITDA forecast for the year, EUR 57-63 million
Slide 2: Highlights
HIGHLIGHTS 2
Slide 3: Key highlights for Q2 2017
KEY HIGHLIGHTS FOR Q2 2017 Q2 2017 compared to Q2 2016 Revenue EBITDA Cost related to changed sailing system and EUR 173.1 m EUR 16.7 m imbalance up 37.2% up 3.2% EUR 2.1 m LINER SERVICES FORWARDING SERVICES Volume Volume up 3.5% up 39.6% Currency exchange movements Revenue Revenue EUR 2.0 m up EUR
Slide 4: Transported volume in Q2 2013 to 2017
TRANSPORTED VOLUME IN Q2 2013 TO 2017 CAGR 5.3% for liner services and 11.9% for forwarding services LINER SERVICES FORWARDING SERVICES Q2 Q2 Volume index: 2010 volume at 100 * New acquisitions account for 32.1% and organic growth 7.5% 4
Slide 5: Revenue and EBITDA 2012 to 2016 by quarter
REVENUE AND EBITDA 2012 TO 2016 BY QUARTER Revenue and EBITDA in Q2 2017 outperform Q2 in previous years REVENUE EBITDA EUR million EUR million * Add-back of EUR 2.3 million non-recurring items in Q1 2017 5
Slide 6: China Forwarders Freight Index
CHINA FORWARDERS FREIGHT INDEX China - Europe 6
Slide 7: Bunker price development
BUNKER PRICE DEVELOPMENT Average fuel price for the 6M 2017 approximately 70% up from 6M 2016 Rotterdam heavy fuel price in USD 7
Slide 8: Key highlights for 6M 2017
KEY HIGHLIGHTS FOR 6M 2017 6M 2017 compared to 6M 2016 Revenue EBITDA Adjusted EBITDA EUR 320.0 m EUR 26.0 m EUR 28.3 m up 33.7% up 0.8% up 9.7% LINER SERVICES FORWARDING SERVICES Volume Volume up 3.3% up 34.3% Expenses/investment in changed sailing system Revenue Revenue EUR 2.7 m up EUR 30.4 m up
Slide 9: Transported volume in 6M 2013 to 2017
TRANSPORTED VOLUME IN 6M 2013 TO 2017 CAGR 4.5% for liner services and 11.3% for forwarding services LINER SERVICES FORWARDING SERVICES 6M 6M Volume index: 2010 volume at 100 * New acquisitions account for 30.5% and organic growth 3.8% 9
Slide 10: Liner services volume
LINER SERVICES VOLUME Iceland, Faroe Islands, Norway and Trans-Atlantic 10
Slide 11: Forwarding services volume
FORWARDING SERVICES VOLUME Reefer and dry cargo forwarding 11
Slide 12: Financial results
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Slide 13: Income statement 6M 2017
INCOME STATEMENT 6M 2017 Results affected by the fishermen strike and other non-recurring items EBITDA Revenue Expenses EUR 26.0 m up 0.8% EUR 320.0 m EUR 294.0 m Adjusted EBITDA up 33.7% up 37.7% EUR 28.3 m up 9.7% Depreciation and Net finance expense Net earnings amortization EUR 14.9 m EUR 4.3 m
Slide 14: Operating expenses bridge
OPERATING EXPENSES BRIDGE Expenses/investment related to changed sailing system EUR 2.7 million and imbalance cost EUR 1.1 million 14
Slide 15: Salary bridge 6M 2017
SALARY BRIDGE 6M 2017 Salaries and related expenses increased by 20.8%, mainly due to strengthening of ISK 15
Slide 16: Geographical split of revenue
GEOGRAPHICAL SPLIT OF REVENUE Europe has grown due to new forwarding acquisitions 16
Slide 17: Revenue and expenses by currency 6M 2017
REVENUE AND EXPENSES BY CURRENCY 6M 2017 Income statement relatively naturally hedged – long in USD and short in ISK 17
Slide 18: Currency exchange gains and losses by quarter 2013 to 2017
CURRENCY EXCHANGE GAINS AND LOSSES BY QUARTER 2013 TO 2017 Accumulated fluctuations 2013 to 2016 positive of EUR 7.7 million and 6M 2017 negative of EUR 2.6 million 18
Slide 19: Revenue by business segment
REVENUE BY BUSINESS SEGMENT Liner services and forwarding services 19
Slide 20: EBITDA by business segment
EBITDA BY BUSINESS SEGMENT Liner services and forwarding services 20
Slide 21: Financial ratios 2013 to 6M 2017
FINANCIAL RATIOS 2013 TO 6M 2017 Increased leverage due to new acquisitions and other investments NET DEBT / LTM-EBITDA NET DEBT AND EQUITY RATIO EUR million EUR million 21
Slide 22: Cash flow bridge Q1 2017
CASH FLOW BRIDGE Q1 2017 Affected by M&A investments and vessel investments * Includes EUR 11.7 million contract payment on vessel building in China 22
Slide 23: 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 23
Slide 24: Ongoing projects and future development
ONGOING PROJECTS AND FUTURE DEVELOPMENT 24
Slide 25: Eimskip's sailing system
EIMSKIP’S SAILING SYSTEM Six sailing routes in the North Atlantic Increased capacity in 2017 Changes made to the sailing system in February 2017 A new Red Line added Services of the Green Line and the Gray Line changed Weekly coastal services offered One vessel added Increased capacity t
Slide 26: 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 27: SHIP-LOG A/S
SHIP-LOG A/S Strengthens Eimskip’s position in worldwide logistics services A specialized forwarding company Established in 2003 Headquartered in Århus, Denmark Employs about 30 people Strengthens Eimskip’s position in Denmark Synergy with Eimskip’s office and warehouse in Århus Acquis
Slide 28: Recent acquisitions
RECENT ACQUISITIONS Strengthen Eimskip’s position and expand its logistics network 28
Slide 29: Freight forwarding
FREIGHT FORWARDING Successful acquisitions diversifying the business and creating shareholder value Eimskip has completed three accretive acquisitions in the last nine months Extraco, Mareco and Ship-Log EBITDA for the forwarding segment has increased 136% over the past three years EBITDA 6M
Slide 30: 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 Royal Arctic Line also signed a contract to build one similar vessel with the was signed in January 2017 same shipyard Subject to co
Slide 31: Unchanged EBITDA forecast for 2017
UNCHANGED EBITDA FORECAST FOR 2017 EBITDA in the range of EUR 57 to 63 million The first six months were in line with the company’s expectations, EBITDA for July is strong and volumes for the first three weeks in August are in line with expectations The EBITDA outlook for the year remains unchan
Slide 32: Questions
QUESTIONS 32
Slide 33: 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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