Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q4 2021 Earnings Presentation
37 slides from Eimskipafelag Islands Hf's earnings presentation, February 2022
Slide 1: Presentation of Q4 & 2021 Results
Uppfæra mynd PRESENTATION OF Q4 & 2021 RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: 2021 Highlights
2021 HIGHLIGHTS RECORD RESULTS IN ALL BUSINESS AREAS • Container Liner finally performing well after years of unacceptable results on back of successful changes to the sailing system, focused revenue management and supported by good volume & global trends • Increased focus, adaptability and industry
Slide 3: Q4 Highlights
Q4 HIGHLIGHTS BEST Q4 EVER ON BACK OF STRONG DECEMBER • Continued strong results in the International forwarding operation, despite lower volume, with higher margins than same quarter LY • Record high results for the operations in Asia • The strong results of international forwarding and it’s growin
Slide 4: Operating Activities
VILJUM VIÐ VERA AÐ SÝNA MEÐHÖNDLUN Á FISKI UNDIR BERU LOFTI? ÞETTA ER SAMT FLOTT MYND….. OPERATING OPERATINGACTIVITIES ACTIVITIES
Slide 5: Sailing System
SAILING SYSTEM EXTENSIVE & RELIABLE SAILING SYSTEM CONNECTING EUROPE AND NORTH-AMERICA VIA ICELAND 5
Slide 6: Fresh by Sea
FRESH BY SEA PROUD PARTNER OFFERING ROBUST AND RELIABLE SOLUTIONS IN TRANSPORTATION OF FRESH PRODUCTS 95% lower carbon footprint compared to airfreight* 6 *CO2 kg per kg of edible meat from Thorshavn/Reykjavík to Boston US including land transportation
Slide 7: Liner Volume
LINER VOLUME Volume growth on all trade lanes in Q4 with very strong Iceland Export volume – Transformational year in Trans-Atlantic DEVELOPMENT CHANGE BY TRADE LANES Q4 & FY 7
Slide 8: Container Liner Analysis
CONTAINER LINER ANALYSIS Utilization improving QoQ and all chartered vessels on long-term fixtures VESSEL UTILIZATION CONTAINER VESSEL TIME CHARTER FIXTURES • Five vessels were renewed on time charter in 2021 for longer fixtures than 100% 91% Eimskip has seen in recent years 90% 88% 91% 87% 90% 82%
Slide 9: Strategic Ownership in ElbFeeder Inc.
STRATEGIC OWNERSHIP IN ELBFEEDER INC. Global increase in charter rates positively affecting financial results of ElbFeeder • Eimskip owns 47.9% share in the vessel holding company ElbFeeder Inc. • Majority shareholder is the international shipping company Ernst Russ AG in Germany which is listed on
Slide 10: Forwarding Volume
FORWARDING VOLUME Equipment challenges in reefer forwarding affecting volume but margins remain on a high level VOLUME SPLIT VOLUME DEVELOPMENT 10
Slide 11: Sustainability at the Forefront
SUSTAINABILITY AT THE FOREFRONT GREEN INVESTMENTS ESG REPORTING • Focus on future energy • All harbor cranes in terminal • Environmental report published quarterly and Sundahöfn now run on reviewed by Executive Management • Reach stackers with lower electricity emission • Offices in the Faroe Island
Slide 12: Positive Development in Sustainability KPI's
POSITIVE DEVELOPMENT IN SUSTAINABILITY KPI‘S Full ESG statement for 2021 is available on the Company’s website GHG EMISSIONS PER TRANSPORTED TONNE1 RATIO OF SORTED WASTE & RECYCLED WASTE2 KPI (tCO2e / transported tonne) 73% 75% 100% 100% 15% 100% 89% 89% 89% 90% 84% 82% 80% 15% 70% 30% 23% 60% 50% 4
Slide 13: Financial Results
FINANCIAL RESULTS
Slide 14: Income Statement
INCOME STATEMENT Very strong fourth quarter contributes to record results in 2021 HIGHLIGHTS EUR thousand Q4 2021 Q4 2020 Change % 2021* 2020 Change % • Strong operational performance in both liner and forwarding services in Q4 Revenue 254,748 175,653 79,095 45.0% 882,717 668,316 214,401 32.1% • Exp
Slide 15: Revenue Analysis
REVENUE ANALYSIS Global market rates in forwarding, volume in liner services and focused revenue management increasing revenue GEOGRAPHICAL SPLIT OF REVENUE REVENUE DEVELOPMENT 15
Slide 16: Expense Analysis
EXPENSE ANALYSIS Increased activity and global market conditions driving cost increases EXPENSE SPLIT EXPENSE BRIDGE *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 margin
Slide 17: EBITDA Analysis
EBITDA ANALYSIS EBITDA more than doubling QoQ driven by strong performance of the International forwarding operation and the Container liner EBITDA DEVELOPMENT EBITDA BRIDGE 17 *Q2 2021 adjusted for settlement with the Icelandic Competition Authority (ICA) in the amount of EUR 10.2 m
Slide 18: EBITDA and EBIT Analysis
EBITDA AND EBIT ANALYSIS Strong growth in EBITDA and EBIT driven by the container liner and International forwarding operations EBITDA BY BUSINESS ACTIVITY 2021 EBIT BY BUSINESS ACTIVITY 2021 18
Slide 19: Balance Sheet
BALANCE SHEET Market conditions and increased revenue affecting lease liabilities and working capital items HIGHLIGHTS EUR thousand 31.12.2021 31.12.2020 Change % • Fixed assets decreasing due to lower CAPEX level compared to last years Non-current assets 435.719 400.433 35.286 8,8% • Right-of-use a
Slide 20: Development in Capital Ratios
DEVELOPMENT IN CAPITAL RATIOS Leverage decreasing and equity ratio in line with long-term targets NET INTEREST BEARING DEBT AND LEVERAGE RATIO EQUITY AND EQUITY RATIO 20
Slide 21: Cash Flow
CASH FLOW Good cash flow from operations combined with low investment resulting in strong cash position at year-end HIGHLIGHTS Million EUR Q4 2021 Q4 2020 Change 2021* 2020 Change • Substantial growth in cash flow from operations EBITDA 31.5 14.9 16.6 114.3 61.7 52.6 • Increase in net working capita
Slide 22: CAPEX & Investment Plan 2022 - 2024
CAPEX & INVESTMENT PLAN 2022 - 2024 INVESTING IN NEW ENVIRONMENTALLY FRIENDLY REACH STACKERS UP TO 40% REDUCTION IN FUEL CONSUMPTION UP TO 40% REDUCTION IN CO2, NOX1, SOX AND PARTICULATE EMISSIONS REDUCTION IN OPERATING NOISE 22
Slide 23: Development in Maintenance CAPEX
DEVELOPMENT IN MAINTENANCE CAPEX Lower than planned CAPEX in 2020 and 2021 affecting the updated three-year plan for 2022 - 2024 THREE-YEAR CAPEX PLAN • Maintenance CAPEX in 2021 EUR 13.1m compared to a budget of EUR 15m • Longer delivery times of ordered equipment and management’s focus on core ope
Slide 24: Development in Investments
DEVELOPMENT IN INVESTMENTS Very low investment level in 2021 due to shifting project timelines THREE-YEAR INVESTMENT PLAN • Investment plan includes projects with the goal of strengthening and supporting organic growth of the operation • Expected annual investment in the next three years in the rang
Slide 25: Outlook & Eimskip
—— OUTLOOK & EIMSKIP
Slide 26: Dividend and Share Capital Reduction Proposals to the AGM
DIVIDEND AND SHARE CAPITAL REDUCTION PROPOSALS TO THE AGM Strong cash position and capital ratios at year-end supporting proposed distribution and share capital reduction DIVIDEND PROPOSAL 2022 SHARE CAPITAL REDUCTION PROPOSAL 2022 • The Board of Directors will propose to the AGM • Reduce share capi
Slide 27: Outlook
OUTLOOK HIGHLIGHTS OF FIRST QUARTER 2022 SO FAR OUTLOOK • Overall a strong start of the year and exceeding expectations • Optimistic about the volume and margins in liner services for the coming months • January results well above same month last year • The current capelin season positively affectin
Slide 28: Thank You
THANK YOU 28
Slide 29: Appendix I
APPENDIX I 29
Slide 30: 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 31: Results by Quarter
Uppfæra og setja mynd RESULTS BY QUARTER hægra megin As reported Setja Eimskips Logo á mynd EUR thousand OPERATING RESULTS Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Revenue 254,748 236,607 211,134 180,228 175,653 Expenses 223,269 199,831 191,639 163,919 160,724 Settlement with ICA - - 10,219 - - EBITD
Slide 32: Segment Analysis - Liner Services
SEGMENT ANALYSIS - LINER SERVICES Performance of the container liner main driver for improved results HIGHLIGHTS EUR thousand Q4 2021 Q4 2020 Change % 2021 2020 Change % • Strong focus on improving performance in container liner services continues to yield positively in Q4 Revenue 133.081 95.052 38.
Slide 33: Segment Analysis - Forwarding Services
SEGMENT ANALYSIS - FORWARDING SERVICES Strong performance in a market characterized by very high global prices and capacity constraints HIGHLIGHTS EUR thousand Q4 2021 Q4 2020 Change % 2021 2020 Change % • Substantial revenue growth in forwarding services despite lower volume Revenue 86.750 50.214 3
Slide 34: Lease Liabilities (IFRS 16)
LEASE LIABILITIES (IFRS 16) Higher charter rates and land lease agreements affecting lease liabilities during the year IFRS 16 LEASE LIABILITIES ANALYSIS 2021 • Material increases in vessel charter rates and longer Lease liabilities agreements result in EUR 50.4m increase in lease liability • Vessel
Slide 35: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 16.2.2022 EUR ‘000 Shareholder Country Shares % Samherji Holding ehf. Iceland 57,453,585 32.79% Lífeyrissjóður verzlunarmanna Iceland 20,924,181 11.94% Gildi - lífeyrissjóður Iceland 19,172,824 10.94% Birta lífeyrissjóður Iceland 8,600,8
Slide 36: 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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