Eimskipafelag Islands hf. · OMXICE:EIM
Eimskipafelag Islands hf — Q3 2014 Earnings Presentation
31 slides from Eimskipafelag Islands hf's earnings presentation, Nov 21, 2014
Slide 1: Third Quarter 2014 Financial Results
THIRD QUARTER 2014 FINANCIAL RESULTS 21 November 2014
Slide 2: Highlights
HIGHLIGHTS 2
Slide 3: Key Highlights Q3 2014
KEY HIGHLIGHTS Q3 2014 Q3 2014 compared to Q3 2013 Q3 2014 is the best quarter since 2009 Revenue EUR 119.6 million, up by 5.3% EBITDA EUR 12.6 million, up by 4.2% Net earnings EUR 7.5 million, up by 48.0% Volume in liner services up by 7.3% Volume in reefer forwarding services up by 19.2% 3
Slide 4: Key Highlights 2014: The First Nine Months
KEY HIGHLIGHTS 2014 The first nine months Transported volume in the company’s North Atlantic liner services grew by 8.4% from the same period 2013 - Eimskip’s volumes to Iceland increased and export has stabilized • Volumes are up in vehicles and construction supplies - Increased volumes to and from
Slide 5: Transported Volume 2009 to 2014
TRANSPORTED VOLUME 2009 TO 2014 Changes from previous year Liner services Reefer forwarding 5
Slide 6: Operating Revenue by Segment
OPERATING REVENUE BY SEGMENT Liner services and forwarding services 9M 2014 9M 2013 6
Slide 7: EBITDA by Segment
EBITDA BY SEGMENT Liner services and forwarding services 9M 2014 9M 2013 7
Slide 8: Geographical Split of Operating Revenue
GEOGRAPHICAL SPLIT OF OPERATING REVENUE Less than half of operating revenue is related to Iceland 9M 2014 9M 2013 8
Slide 9: Freight Index China - Europe
FREIGHT INDEX CHINA - EUROPE Fluctuations in pricing from the deep sea carriers 2011 to 2014 9
Slide 10: Q3 and 9M 2014 Financial Results
Q3 AND 9M 2014 FINANCIAL RESULTS 10
Slide 11: Income Statement
INCOME STATEMENT Strong third quarter results Q3 2014 is the best quarter since 2009 in terms of revenue, EBITDA and net earnings 9M results affected by the following items EUR thousands Q3 2014 Q3 2013 Change % 9M 2014 9M 2013 Change % - Revenue generally affected by rates, cargo combination and cu
Slide 12: Operating Revenue and EBITDA by Quarter
OPERATING REVENUE AND EBITDA BY QUARTER Adjusted for one-off items in 2011 and 2012 Operating revenue EBITDA EUR million EUR million 12
Slide 13: Balance Sheet
BALANCE SHEET Solid with low leverage Total assets increased by 7.1% from year-end 2013 due to increased current assets - Trade and other receivables increased by EUR 13.8 million EUR thousands 30.9.2014 31.12.2013 Change % due to seasonal effect, increased sales in the third quarter 2014 and curren
Slide 14: Financial Ratios
FINANCIAL RATIOS Net debt / EBITDA (adjusted) Net debt and equity ratio EUR million EUR million 14
Slide 15: Strong Cash Flow and Cash Position
STRONG CASH FLOW AND CASH POSITION Increased cash and equivalents by EUR 7.8 million EUR thousands Q3 2014 Q3 2013 Change % 9M 2014 9M 2013 Change % Cash flows from operations 4,968 7,420 (2,452) (33.0%) 18,890 13,365 5,525 41.3% Investing activities (5,153) (7,090) 1,937 27.3% (13,929) (21,621) 7,6
Slide 16: Cash Flow Bridge 9M 2014
CASH FLOW BRIDGE 9M 2014 EUR million 16
Slide 17: Capex 2010 to 2014
CAPEX 2010 TO 2014 Q3 affected by container investments 17
Slide 18: Outlook
OUTLOOK 18
Slide 19: The New Vessel Bakkafoss
THE NEW VESSEL BAKKAFOSS Estimated delivery in Q4 2015 Negotiations with the Chinese shipyard Rongcheng Shenfei on finishing the building of the 875 TEU container vessel Bakkafoss have been finalized Bakkafoss is the sister vessel of the Lagarfoss which was in service as from August Further discount
Slide 20: Estimated Development of TEU Capacity
ESTIMATED DEVELOPMENT OF TEU CAPACITY Container and reefer vessels in liner trade in the North Atlantic 20
Slide 21: Cold Storage in Hafnarfjördur
COLD STORAGE IN HAFNARFJÖRDUR Expected to be in operation in the second half of 2015 Fjarðarfrost, Eimskip’s current cold storage facility in Hafnarfjördur in Iceland, has capacity of approximately 3,000 tons Eimskip announced in November building of a new 10,000 ton cold storage facility in Hafnarf
Slide 22: (in —- UU ow E a
(in —- UU ow E a _| Scar EJEIMSKIP
Slide 23: Sulphur Emissions
SULPHUR EMISSIONS New regulation will apply as of 1 January 2015 As of 1 January 2015 new rules will apply to sulphur emissions from vessels in Emission Control Areas (ECAs) Shipping companies are obliged to use bunker fuel with sulphur content no higher than 0.1% - The limit is currently 1.0% Origi
Slide 24: Growth in Line with Strategy
GROWTH IN LINE WITH STRATEGY Through acquisitions and joint ventures Focus on operations in Eimskip’s home market where synergy is a clear driver in evaluation of potential targets Reasonably sized acquisitions and joint venture projects - Container liner operations 1 - Reefer and dry vessel operati
Slide 25: Dual Listing
DUAL LISTING Ongoing preparation Dual listing of Eimskip will provide - Source of foreign currency enabling Eimskip to make material acquisitions overseas and facilitate the use of stock in acquisitions - Improved access to investors and increased analyst coverage which should increase trading volum
Slide 26: Outlook for 2014
OUTLOOK FOR 2014 Opportunities to benefit from increased volume to and from Iceland and the Faroe Islands The October results are in line with expectations Godafoss and Vidfoss have been going through unexpected maintenance work in November The EBITDA forecast for this year has been changed from EUR
Slide 27: Future Outlook
FUTURE OUTLOOK Volume to and from Iceland and the Faroe Islands is expected to grow Large projects in Iceland are slowly picking up after several years of recession - Grundartangi, Helguvík and Húsavík External growth through reasonably sized acquisitions and joint venture projects will start materi
Slide 28: Investigation of the Icelandic Competition Authority
INVESTIGATION OF THE ICELANDIC COMPETITION AUTHORITY The Company rejects all allegations of any violation against competition law Eimskip has no further information on the Icelandic Eimskip has demanded access to the leaked information Competition Authority’s investigation than has already been from
Slide 29: Eimskip
E/JEIMSKIP COOL CHOICE IN LOGISTICS ue) ete s om S&S + conn Oe cows ene og
Slide 30: 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
Slide 31: Cool Choice in Logistics
COOL CHOICE IN LOGISTICS
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