Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — Q3 2021 Earnings Presentation
31 slides from Eimskipafelag Islands Hf's earnings presentation, November 2021
Slide 1: Presentation of Q3 2021 Results
PRESENTATION OF Q3 2021 RESULTS Vilhelm Már Thorsteinsson, CEO María Björk Einarsdóttir, CFO
Slide 2: Q3 Highlights
Q3 HIGHLIGHTS CONTINUED STRONG RESULTS • Liner services performing well in the quarter • Another good quarter for the Container liner with positive volume development and active revenue management • Reefer liner services in Norway with good results on account of high utilization • Strong results in
Slide 3: Operating Activities
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Slide 4: Liner Volume
LINER VOLUME Good quarter for Iceland export, Norway liner and Trans-Atlantic services DEVELOPMENT CHANGE BY TRADE LANES 4
Slide 5: Trans-Atlantic Volume
TRANS-ATLANTIC VOLUME Weekly services with three vessels since Q4 2017 VOLUME DEVELOPMENT Q3 • Volume has been growing steadily since 2017 • Gradual capacity increase over the course of 2017 until weekly services started in Q4 • Trans-Atlantic volume enables weekly services between Iceland and North
Slide 6: Container Liner Analysis
CONTAINER LINER ANALYSIS Strong vessel utilization in the quarter VESSEL UTILIZATION NEW REEFER CONTAINERS EQUIPPED WITH LIVE DATA COMMUNICATION New reefer containers are equipped to connect with the fleet data management solution Lynx allowing better monitoring and control 6
Slide 7: Forwarding Volume
FORWARDING VOLUME Equipment challenges in reefer forwarding affecting volume but margins remain on a good level Q3 SPLIT VOLUME DEVELOPMENT 7
Slide 8: Pioneers in Electric Land Connections
PIONEERS IN ELECTRIC LAND CONNECTIONS Milestone in energy exchange at Sundahöfn • Brúarfoss and Dettifoss, the Company’s largest vessels will be equipped for electric land connections in Q2 2022 • A collaboration between Eimskip and the Icelandic Ministry for the Environment and Natural Resources, A
Slide 9: Financial Results
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Slide 10: Income Statement
INCOME STATEMENT Net earnings have never been stronger in one quarter Q3 • Strong operational performance in both liner and forwarding services EUR thousand Q3 2021 Q3 2020 Change % • Revenue increase by 39% Revenue 236,607 170,378 66,229 38.9% • Significant price increases from 3rd party transporta
Slide 11: Revenue Analysis
REVENUE ANALYSIS Global market rates in forwarding and strong volume in liner increasing revenue GEOGRAPHICAL SPLIT OF REVENUE REVENUE DEVELOPMENT 11
Slide 12: Expense Analysis
EXPENSE ANALYSIS Global market conditions causing very high international freight rates driving 3rd party 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 variab
Slide 13: EBITDA Analysis
EBITDA ANALYSIS Strong performance of the container liner and forwarding services EBITDA DEVELOPMENT EBITDA BRIDGE * EBITDA % 9.5% 11.0% 13.2% 2.2% 5.8% 10.0% 12.6% 8.5% 9.0% 14.1% 15.5% *Q2 2021 adjusted for settlement with the Icelandic Competition Authority (ICA) in the amount of EUR 10.2 m 13
Slide 14: EBIT Analysis
EBIT ANALYSIS Strong performance of the container liner and forwarding services BY BUSINESS ACTIVITY EBIT BRIDGE CONTAINER LINER 14
Slide 15: Development in Liner Services
DEVELOPMENT IN LINER SERVICES Positive volume development, good utilization and active revenue management contribute to improved results Q3 EUR thousand Q3 2021 Q3 2020 Change % 9M 2021 9M 2020 Change % • Strong focus for the past quarters on improving performance in container liner services continu
Slide 16: Development in Forwarding Services
DEVELOPMENT IN FORWARDING SERVICES Strong performance in a market characterized by very high global prices and capacity constraints Q3 EUR thousand Q3 2021 Q3 2020 Change % 9M 2021 9M 2020 Change % • Good revenue growth in forwarding services despite lower volume • Challenging global market conditio
Slide 17: Balance Sheet
BALANCE SHEET Market conditions affecting lease liabilities and working capital items ASSETS EQUITY AND LIABILITIES EUR thousand 30.09.2021 31.12.2020 Change % EUR thousand 30.09.2021 31.12.2020 Change % Non-current assets 408,175 400,433 7,742 1.9% Equity 246,874 230,657 16,217 7.0% Fixed assets 29
Slide 18: Cash Flow
CASH FLOW Strong cash flow from operations Q3 • Strong cash flow from operations Million EUR Q3 2021 Q3 2020 Change 9M 2021* 9M 2020 Change • Positive working capital development in the quarter EBITDA 36.8 21.4 15.4 82.8 46.7 36.1 • Strong cash position and revolver credit facilities are currently W
Slide 19: CAPEX & Outlook
4 _ CAPEX & OUTLOOK 47 4 & EIMSKIP
Slide 20: Development in Maintenance CAPEX and New Investments
DEVELOPMENT IN MAINTENANCE CAPEX AND NEW INVESTMENTS Lower than planned CAPEX in 2021 mainly due to external factors - 3-year plan to be presented in Q1 2022 9M • Maintenance CAPEX EUR 8.7m compared to EUR 10.5m in 9M 2020 • Full year 2021 maintenance CAPEX forecasted around EUR 12m, EUR million com
Slide 21: Outlook
OUTLOOK HIGHLIGHTS OF FOURTH QUARTER SO FAR OUTLOOK AND UPDATED GUIDANCE FOR 2021 • The volume in liner services has been on a good level so far in the • Optimistic about the volume and margins for the coming months quarter • Volume in Iceland export strong and outlook for the remainder of the • Eim
Slide 22: Thank You
THANK YOU 22
Slide 23: Appendix I
APPENDIX I 23
Slide 24: 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 25: Income Statement 9M
INCOME STATEMENT 9M Substantial improvements in operation between years in a market characterized by high global prices and supply chain disruptions EUR thousand 9M 2021* 9M 2020 Change % Revenue 627,969 492,663 135,306 27.5% Expenses 545,170 445,914 99,256 22.3% Salary and related expenses 89,455 8
Slide 26: Results by Quarter as Reported
RESULTS BY QUARTER AS REPORTED EUR thousand OPERATING RESULTS Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Revenue 236,607 211,134 180,228 175,653 170,378 Expenses 199,831 191,639 163,919 160,724 148,968 Settlement with ICA - 10,219 - - - EBITDA 36,776 19,495 16,309 14,929 21,410 EBIT 23,814 7,252 4,512
Slide 27: 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 9M • Material increases in vessel charter rates and longer Lease liabilities agreements result in EUR 23.7m increase in lease liability • New and
Slide 28: Sustainability KPI's – QoQ Development
SUSTAINABILITY KPI‘S – QoQ DEVELOPMENT Full environmental statement for Q3 is available on the company website GHG EMISSIONS PER TRANSPORTED TON PERCENTAGE OF RECYCLED WASTE ENERGY FROM ELECTRICITY 5.000.000 15% Q3 2021 31% 4.000.000 CO2 3.000.000 kWh Reduced GHG emissions per unit of 2.000.000 tran
Slide 29: Shareholders Information
SHAREHOLDERS INFORMATION PAYMENTS TO SHAREHOLDERS SHAREHOLDERS 08.11.2021 EUR ‘000 Shareholder Country Shares % Samherji Holding ehf. Iceland 59,953,585 34.22% Gildi - lífeyrissjóður Iceland 22,212,780 12.68% Lífeyrissjóður verzlunarmanna Iceland 21,574,181 12.31% Birta lífeyrissjóður Iceland 8,779,
Slide 30: 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
Slide 31: Slide 31
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