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Presentation on Half Year Results 2007 June 20, 2007 Content - - PowerPoint PPT Presentation

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Presentation on Half Year Results 2007 June 20, 2007 Content Financial Overview 2nd Quarter 1 2 Versacold / Atlas 3 Global Strategy 4 Cash flow, balance sheet and neb debt ratio 5 Innovate Financial Overview 2nd Quarter Highlights

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SLIDE 1

Presentation on Half Year Results 2007

June 20, 2007

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SLIDE 2

Financial Overview 2nd Quarter Versacold / Atlas Global Strategy Cash flow, balance sheet and neb debt ratio Innovate

1 2 3 4 5

Content

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SLIDE 3

Financial Overview 2nd Quarter

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SLIDE 4

Highlights

  • Many acquisitions and integrations in the end of the financial year 2006

and first half of the financial year 2007

– Corby Chilled, merged into Innovate – Containerships, Kursiu Linija merged into Containerships – Atlas Cold Storage – Daalimpex

  • Sales of assets and reduce debts in the Balance sheet prior to year end

– Disposal of Aviation related assets – Sales of properties related to Atlas and Versacold if the deal will be succesfull

  • Merger of Hf. Eimskipafelag Islands and Eimskipafelag Islands ehf. as of

November 1 2006

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SLIDE 5

2nd Quarter Results compared to forecasts

Euro Millions Glitnir Kaupþing Landsbanki Actual Total Revenue 340 342 410 397 EBITDA 36,1 32,6 35 33 EBIT 14,6 11,6 13 10,5 PROFIT 0,6

  • 3,3
  • 2,5

0,2

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SLIDE 6

Consolidated Income Statement H1 2007

Actual Actual Dff. EUR '000 2007 2006 2006 Operating revenue 796.419 376.544 419.875 Operating expenses (757.866) (358.268) (399.598) Gross profit 38.553 18.276 20.277 Administration (17.242) (16.734) (508) EBIT 21.311 1.542 19.769 Financial income and expenses (32.332) (41.773) 9.441 Influence of affiliated companies 899 214 685 Profit before taxes (10.122) (40.018) 29.896 Income tax 4.740 4.942 (202) Profit (loss) for continuing operations (5.382) (35.075) 29.693 Profit (loss) from discontinued operations (net of tax) (24.613) 24.613 Profit (loss) for the period (5.382) (59.688) 54.306 EBITDA......................................................................... 65.465 31.769 EBITDA / Income.......................................................... 8,2% 8,4% EBIT / Income............................................................... 2,7% 0,4% Profit / Income...............................................................

  • 0,7%
  • 9,3%
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SLIDE 7

Business segments: Eimskip and Aviation H1 2007

Euro Millions Total Eimskip Aviation Operating Revenue 796 637 160 Operating Expenses 758 588 170 EBITDA 65 60 5

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SLIDE 8

EBITDA Trend

EUR '000 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Revenue 172.950 180.829 282.603 399.323 397.096 Expenses (164.336) (166.263) (277.042) (367.034) (363.920) EBITDA 8.614 14.566 5.561 32.289 33.176

50 100 150 200 250 300 350 400 450 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Euro Millions 5 10 15 20 25 30 35

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SLIDE 9

Key Financials 2007 - 2010

  • Eimskip’s turnover will exceed two billion Euros in 2010
  • Eimskip’s projected turnover for the year 2007 was 1,150 million Euros

500 1.000 1.500 2.000 2.500 2007 2008 2009 2010 Euro Millions 50 100 150 200 250 Total Revenue Total EBITDA

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SLIDE 10

Global Strategy

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SLIDE 11

Our activities over last three years

4 projects in process today:

  • Versacold take-over bid
  • Disposal of Avion Aircraft Trading
  • Disposal of Air Atlanta
  • Sales-leaseback in Atlas
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SLIDE 12

Business Snapshot

  • Approximately 10,000 employees (14,500 with Versacold)
  • 200 operational bases in 31 countries (280 with Versacold)
  • 40-50 vessels
  • 30.000 teus – container units
  • Around 100 coldstores (180 with Versacold)
  • 1,350 trucks and trailers
  • 25 aircraft

Empty container Plant/ware- house Domestic transport to port Export port International transport Import port Domestic transport from port Plant/ware- house Empty container

Complete transport services – Door to Door

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SLIDE 13

Eimskip's contribution

  • 1. Staff
  • 2. Hardware
  • 3. Vertical integration
  • 4. Global coverage
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SLIDE 14

Vertical integration

Eimskip involved in all pars except Harvesting/production and retail

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SLIDE 15

Vertical integration

Partnerships with deep sea Carriers DSC shipping & Eimskip Reefer Logistics espertise Coldstores Shipping Forwarding Coldstores Distribution High added Value services to the customers Reduced transaction costs through elimination of non value adding intermediaries

Intra Us & CA

ERL Asia DL

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SLIDE 16

CEO/President

Baldur Orn Gudnason

North – Atlantic

Bragi Thor Marinosson

North – Atlantic

Bragi Thor Marinosson

Europe

Bjorn Einarsson

Europe

Bjorn Einarsson

UK

  • Pete

Osborne

  • Stephen

Dargavel

  • Stephen

Savage

UK

  • Pete

Osborne

  • Stephen

Dargavel

  • Stephen

Savage

Baltic/ Russia

Sigurjon Markusson

Baltic/ Russia

Sigurjon Markusson

Americas

Reynir Gislason

Americas

Reynir Gislason

Asia

James Liu

Asia

James Liu

Finance

Stefan Agust Magnusson

Finance

Stefan Agust Magnusson

Human Resources Corporate Communication

Heiðrun Jonsdottir

Human Resources Corporate Communication

Heiðrun Jonsdottir

Information Technology

Arni Rafn Jonsson

Information Technology

Arni Rafn Jonsson

Logistic & PD

Stephen Savage Steven Dargavel Pete Osborne

Logistic & PD

Stephen Savage Steven Dargavel Pete Osborne

Shipping

Bragi Thor Marinosson Sigurjon Markusson

Shipping

Bragi Thor Marinosson Sigurjon Markusson

Executive Board

  • f Directors

Executive Board

  • f Directors

Corporate Office

Stefan Agust Magnusson Deputy CEO

Corporate Structure

  • Eimskip
  • Faroe Ship
  • Eimskip CTG
  • Daalimpex
  • ERL
  • Innovate
  • Corby Chilled
  • Containerships
  • Atlas
  • Versacold
  • Intra US&CA
  • Eimskip Asia
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SLIDE 17

Service Sectors - Logistics and Shipping

ERL Asia

Logistic Shipping

Intra Us & CA

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SLIDE 18

Global Reefer Value Chain

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Largest cold store company in the world

  • An extensive reefer network between N-America, S- America, Australia, Europe and Asia

– 171 coldstores in 5 continents (with Versacold)

  • N-America
  • 100 cold stores
  • S-America
  • 2 cold stores
  • Australia
  • 14 coldstores in Australia
  • 9 coldstores in New Zealand
  • Europe
  • 30 cold stores in UK and an extensive inland network
  • 10 cold stores and 15 reefer vessels between Norway and mainland Europe and

Baltic/Russia

  • 6 cold stores in the Netherlands
  • Asia

– Eimskip Qingdao

  • Operation of the largest cold store in China

– 100 thousund pallets

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SLIDE 20

Coldstore facilities incl. Versacold

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SLIDE 21

Key Customer Worldwide

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SLIDE 22

Versacold / Atlas

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SLIDE 23

Main assumptions in Versacold’s take-over bid

  • Price: $12.25 per unit payable in cash
  • The Trustees of the Fund unanimously recommended that Unitholders

accept the offer – UBS Investment Bank, the Fund’s financial advisor, has provided an

  • pinion that the offer is fair from a financial point of view to

Unitholders – Termination Fee – $20 million

  • Lock Up Agreement

– Eimskip has a lock-up agreement to tender 25.3% of the total units – Bid subject to normal conditions, MAC, Regulatory Approvals, 66 2/3% tender

  • Timing – Bid to be open until 8:00 PM July 27, 2007
  • Total cost of take-over bid CAD 1.2 billion
  • Fully financed by Eimskip, RBC Capital Markets and KingSett Capital
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SLIDE 24

Versacold Overview

  • Versacold is one of the top three PRW companies in North America and in

the world.

  • Listed on the Toronto Stock Exchange (ICE.UN)
  • The history of Versacold spans more than 60 years
  • It has a network of 72 refrigerated and frozen-food distribution centers in

Canada, United States, Australia, New Zealand and Argentina

  • Total capacity of 291 million cubic feet of refrigerated storage space
  • Versacold has more than 3,700 customers, including major companies such

as Kellogg’s, Costco, Cargill Foods, Overwaitea, Maple Leaf, Saputo, Nestle, Birds Eye and Pillsbury

  • More than 4,500 employees
  • Strong experienced management team with collectively more than 100

years of experience in the industry

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Key Customers – North American Market

September 2006 Atlas Versacold PRW market coverage: Primary distribution 45% revenues 20% revenues Secondary distribution 55% revenues 80% revenues Key Customers: Kroger Kraft ~ Kellogg’s Good Humor Costco ~ Cargill Foods Pilgrim’s Pride Overwaitea McCain Maple Leaf ~ Saputo Rich & Nestle Nestle ~ Birds Eye Canada Bread Pillsbury Cavendish & Gen. Mills Export Packers

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SLIDE 26

Recent developments in Versacold

  • Versacold has grown rapidly in recent years both through organic growth

and acquisitions

  • 2003: acquires Geneva Lakes PRW increasing capacity by 35%
  • End 2005: acquires P&O PRW and Transportation operations. Storage

capacity triples

Million of CDN $ 2006 2005 2004 2003 Total Revenue 693 210 176 149 Total EBITDA 101 35 33 28 % Revenues 14,6% 16,6% 18,9% 18,9%

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SLIDE 27

Atlas & Versacold –Geographic Coverage

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SLIDE 28

Atlas Profit Improvement Initiatives

  • Labor/Corporate Optimization – Annual impact $18M
  • November 1 thru December 15 – Top Management Restructuring
  • Jan 1 thru February 28 – Middle Management Restructuring
  • April thru May – General Work Force Restructuring
  • Price strategy revised
  • IT Optimization – Annual Impact $5.4M
  • Focus on cross-selling additional service and capabilities to global

customers using Eimskip’s global technical know-how

  • Focus on Property sales
  • The proceeds will be used to pay down debt and for further growth
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SLIDE 29

Cash flow, balance sheet and net debt ratio

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Cash Flow

Actual Actual EUR '000 2007 2006 Net profit (loss)..................................................................................... (5.382) (59.688) Items that do not affect cash flow......................................................... 32.430 43.685 Working capital provided (used) by operating activities 27.048 (16.003) Changes in current assets and liabilities.............................................. 17.387 (100.829) Cash provided (used) by operating activities.................................. 44.435 (116.832) Investing activities................................................................................. (523.307) (95.819) Financing activities............................................................................... 355.431 222.836 Discontinued operations....................................................................... 632 Effects of exchange rate changes on cash and cash equivalents........ (1.047) (5.856) Increase (decrease) in cash and cash equivalents (124.488) 4.961 Cash and cash equivalents at the beginning of the year...................... 181.069 124.628 Cash and cash equivalents at the end of the year.......................... 56.581 129.589

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SLIDE 31

1H Investments

EUR '000 1H Investments Vessels 12.986 Containers & Equipments 10.800 IT 2.866 Aviation 113.911 Investments in group companies* 415.000 Proceeds & investm. in financial ass

  • 33.256

522.307 *Atlas, Containerships and Daalimpex

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SLIDE 32

Balance Sheet

EUR '000 30.4.2007 31.10.2006 Diff. Assets Non-Current assets......................... 1.385.066 747.804 637.262 Current assets................................. 462.608 703.737

  • 241.129

1.847.674 1.451.541 396.133 Equity 534.765 537.630

  • 2.865

Liabilities Non-Current liabilities...................... 816.268 408.316 407.952 Current liabilities.............................. 496.641 505.595

  • 8.954

1.312.909 913.911 398.998 1.847.674 1.451.541 396.133 Equity ratio 28,9% 37,0% Current ratio 0,93 1,39 Total assets.......................................... Total liabilities...................................... Total equity and liabilities...................

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SLIDE 33

Net Debt and EBITDA Proforma with Versacold, Proceeds from Aviation Sale and Property Sale

mEUR mEUR Net Debt, end Q2 650 Projected EBITDA 2007 120 Versacold 776 Versacold 79 Net Debt after Acquisition 1.426 Synergies/growth 50 Property Sale

  • 987

EBITDA Before Property Sale 249 Proceeds from Aviation Sale

  • 100

Rent Increase Due to Property Sale

  • 69

Net Debt 339 EBITDA 2008 180 Leverage Ratio 1,9

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SLIDE 34

Leverage Ratio Development

0,0 1,0 2,0 3,0 4,0 5,0 6,0 7,0 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 2009 2010

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SLIDE 35