Eimskipafelag Islands Hf. · OMXICE:EIM
Eimskipafelag Islands Hf — FY2016 Earnings Presentation
37 slides from Eimskipafelag Islands Hf's earnings presentation, Feb 24, 2017
Slide 1: 2016 was a record year for Eimskip
2016 WAS A RECORD YEAR FOR EIMSKIP 2016 and Q4 - 24 February 2017 | Normalized EBITDA growth 23.7%
Slide 2: Highlights
HIGHLIGHTS 2
Slide 3: Key highlights for 2016
KEY HIGHLIGHTS FOR 2016 2016 compared to 2015 EBITDA growth EBIT 18.3% up by 24.1% Net earnings Normalized EBITDA growth Normalized EBIT up by 23.0% 23.7% up by 37.4% Volume in Volume in liner services forwarding services Strong cash flow up by 5.9% up by 4.8% 3
Slide 4: Transported volume 2012 to 2016
TRANSPORTED VOLUME 2012 TO 2016 Changes from previous year LINER SERVICES FORWARDING SERVICES Volume index: 2010 volume at 100 4
Slide 5: Transported volume in Q4 2012 to 2016
TRANSPORTED VOLUME IN Q4 2012 TO 2016 Changes from Q4 in previous year LINER SERVICES FORWARDING SERVICES Volume index: 2010 volume at 100 5
Slide 6: Liner services volume
LINER SERVICES VOLUME Iceland, Faroe Islands, Norway and Trans-Atlantic 6
Slide 7: Forwarding services volume
FORWARDING SERVICES VOLUME Reefer and dry cargo forwarding 7
Slide 8: China Forwarders Freight Index
CHINA FORWARDERS FREIGHT INDEX China - Europe 8
Slide 9: Revenue and EBITDA 2012 to 2016 by quarter
REVENUE AND EBITDA 2012 TO 2016 BY QUARTER 2016 was a record year REVENUE EBITDA EUR million EUR million Adjusted for one-off items in 2012 in connection with the IPO * EUR 2.0 million gain on disposal of a vessel under construction included in Q3 2015 revenue and EBITDA 9
Slide 10: Financial results
FINANCIAL RESULTS 10
Slide 11: Income statement 2016
INCOME STATEMENT 2016 Key highlights EBITDA Revenue Operating expenses EUR 53.5 m EUR 513.9 m up by 1.3% up by 18.3% affected by international despite salary expenses freight rates up by 24.7% EBITDA ratio 10.4% Currency exchange gain EBIT Net earnings EUR 25.4 m EUR 2.5 m EUR 21.9 m compared to up
Slide 12: Key highlights for Q4 2016
KEY HIGHLIGHTS FOR Q4 2016 Q4 2016 compared to Q4 2015 EBITDA growth Net earnings Revenue growth 1.6% lower by 16.4% 7.6% Norway below Increased depreciation expectations Volume in liner services Volume in forwarding services Strong cash flow up by 0.1% Lower Norway volume up by 9.3% 12
Slide 13: Business segment bridges 2016
BUSINESS SEGMENT BRIDGES 2016 Revenue and EBITDA REVENUE EBITDA EUR million EUR million 13
Slide 14: Salary bridge 2016
SALARY BRIDGE 2016 Salaries and related expenses 14
Slide 15: Geographical split of revenue
GEOGRAPHICAL SPLIT OF REVENUE About half of revenue is related to Iceland 15
Slide 16: Revenue and expenses by currency 2016
REVENUE AND EXPENSES BY CURRENCY 2016 Income statement relatively naturally hedged – long in USD and short in ISK 16
Slide 17: Revenue by business segment
REVENUE BY BUSINESS SEGMENT Liner services and forwarding services 17
Slide 18: EBITDA by business segment
EBITDA BY BUSINESS SEGMENT Liner services and forwarding services 18
Slide 19: Financial ratios 2012 to 2016
FINANCIAL RATIOS 2012 TO 2016 Low leverage and strong financial position NET DEBT / LTM-EBITDA NET DEBT AND EQUITY RATIO EUR million EUR million Adjusted for one-off items in 2012 19
Slide 20: Cash flow bridge 2016
CASH FLOW BRIDGE 2016 Increased cash flow from operating activities 20
Slide 21: CAPEX 2012 to 2017
CAPEX 2012 TO 2017 Operation CAPEX 2016 in line with previous year 21
Slide 22: Dividend proposal 2017
DIVIDEND PROPOSAL 2017 Proposed total payment EUR 11.0 million DIVIDEND POLICY DIVIDEND PROPOSAL 2017 The policy of Eimskipafélag Íslands hf. is to ISK 6.80 per share pay annual dividend that equals an amount Up by 4.6% from the 2016 dividend in the range of 10-50% of net profit after payment of I
Slide 23: Ongoing projects and future development
ONGOING PROJECTS AND FUTURE DEVELOPMENT 23
Slide 24: Eimskip's sailing system in the North Atlantic
EIMSKIP’S SAILING SYSTEM In the North Atlantic 24
Slide 25: The vessel fleet
THE VESSEL FLEET Changes in the first months of 2017 Eimskip is constantly working on upgrading and renewing its vessel fleet to better serve customers and ensure reliable services Brúarfoss Built 1992 724 TEU Sold in February 2017 Sophia Built 2008 698 TEU Gearless > cranes to be
Slide 26: The vessel fleet
OTHER OPERATIONS IN THE NORTH ATLANTIC THE VESSEL FLEET LANGFOSS Built 1991 21 vessels in operation, 12 own and 9 chartered Reefer (bulk) GT 3,625 STIGFOSS Built 1990 Reefer (bulk) GT 3,625 BLUE LINE GRAY LINE NORDVÅG GODAFOSS BLIKUR Built 1979 Built 1995 Built 2003 Reefer (bulk/TEU44) TEU 1,457 TEU
Slide 27: Investments
INVESTMENTS Acquisitions and Joint Ventures Eimskip intends to grow both organically and through strategic accretive acquisitions to increase shareholder value Recent progress Acquisition of 90% share in Extraco in October 2016 Acquisition of 80% share in Mareco in January 2017 Cooperation
Slide 28: Extraco
EXTRACO Strengthens Eimskip’s position in worldwide reefer logistics A specialized forwarding company in Rotterdam, established in 1991 Acquisition of a 90% share in the company Customers are importers of chilled and frozen commodities in the Netherlands Strong financial performance Annual
Slide 29: Mareco
MARECO Strengthens Eimskip’s position in worldwide forwarding services A specialized reefer logistics company Established in 2002 Headquartered in Antwerp, Belgium: 22 employees An operation in Sao Paulo, Brazil: 4 employees Acquisition of a 80% share in the company A strong management t
Slide 30: Eimskip and Royal Arctic Line
EIMSKIP AND ROYAL ARCTIC LINE Cooperation agreement and building of container vessels in China In May 2016, Eimskip and Royal Arctic Line signed a letter of intent to form Built to the highest environmental standards and evaluate a potential cooperation regarding building of three container Co
Slide 31: Nor Lines
NOR LINES Eimskip is evaluating its next steps Eimskip signed an agreement to acquire the Norwegian shipping and logistics company Nor Lines in November 2016 The agreement was subject to the approval of the Norwegian Competition Authority (NCA) On 20 February NCA gave a notice of an objection
Slide 32: Revenue by business segment
REVENUE BY BUSINESS SEGMENT Adjusted for Extraco and Mareco 32
Slide 33: Geographical split of revenue
GEOGRAPHICAL SPLIT OF REVENUE Adjusted for Extraco and Mareco 33
Slide 34: EBITDA forecast for 2017
EBITDA FORECAST FOR 2017 EBITDA in the range of EUR 57 to 63 million The outlook for 2017 is positive Continued volume growth is expected in the Icelandic market The strike in the seafood industry in Iceland will affect Q1 results Positive outlook for the Faroe Islands and Norway Forwardin
Slide 35: Questions
QUESTIONS 35
Slide 36: 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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