Main results of the third quarter

• Good results in both line and transmission services, partly due to favorable international market conditions.

• Continued strong performance in container vessels driven by good volume development, especially in exports to Iceland and Atlantic services, and active revenue management.

• Freezer service in Norway with good results due to high utilization and improved balance.

• Excellent results in international freight forwarding in a market characterized by very high international prices and capacity.

  • Record results for Asian operations in the quarter.

• Revenue amounted to EUR 236.6 million, an increase of EUR 66.2 million or 39% compared to the third quarter of 2020.

  • Significant price increases from third-party transport inventories result in a corresponding increase in sales revenue.

  • Good revenue growth in transport services despite smaller volumes.

• Expenses amounted to EUR 199.8 million, an increase of 34%, mainly driven by a significant increase in third party costs.

  • Labor costs increase by EUR 4.3 million or 17%. Of this, the foreign exchange effect amounts to EUR 1.7 million and EUR 2.6 million, among other things due to increased activity and general wage increases.

• EBITDA increased significantly or by EUR 15.4 million and amounted to EUR 36.8 million compared to EUR 21.4 million in the same quarter of 2020. The EBITDA ratio was 15.5% compared to 12.6% in the same period last year. EBIT amounted to EUR 23.8 million compared to EUR 10.4 million or increased by EUR 13.4 million during the same period in 2020.

• Good contribution from affiliates during the quarter, mainly due to Eimskip’s share in the capital gain on one of ElbFeeder’s vessels in the amount of EUR 3.0 million as announced in August 2021.

• Profit amounted to EUR 20.7 million, compared to EUR 6.2 million in the same period in 2020.

• The equity ratio was 41.3% and the adjusted debt / equity ratio was 2.18, both in line with published targets.

Key results 9M 2021

• Revenue amounted to EUR 628.0 million, an increase of 135.3 million or 27.5% compared to the same period in 2020.

• Adjusted total expenses amounted to EUR 545.2 million, an increase of EUR 99.3 million, mainly due to increased activity and higher 3^rd expenses for the party.

  • Total fees adjusted for settlement with the Competition Authority in the second quarter in the amount of EUR 10.2 million.

• A good increase in EBITDA with adjusted EBITDA of EUR 82.8 million, compared to EUR 46.7 million in the same period last year, which is an increase of EUR 36.1 million. Adjusted EBIT amounted to EUR 45.8 million, compared to EUR 13.9 million in the same period last year.

• Significant increase in profit as adjusted profit amounted to EUR 36.9 million, compared to EUR 3.7 million in the same period in 2020.

• The total cost for the period amounted to EUR 9.4 million, compared to EUR 32.8 million in the same period last year, of which EUR 18.5 million was investment in new vessels in 9M 2020.

• Updated guidelines for adjusted EBITDA for the whole of 2021 in the range of EUR 102 – 110 million, compared to EUR 90 – 100 million as previously published. This means adjusted EBIT of around EUR 51 – 59 million.

  • Based on actual results for 9M 2021 and updated forecast for the fourth quarter.

VILHELM MÁR THORSTEINSSON, CEO

“I am very pleased with the continued strong performance in the third quarter. The results are characterized by good contributions from both line and transport services, which are the main drivers of improved results. Unusual international market conditions in the transport sector continue to be challenging. both revenue and expenditure, but we are seeing the first signs of stability in global price indices.

EBITDA was strong during the period or amounted to EUR 36.8 million as net profit was never better in one quarter or amounted to EUR 20.7 million. We still had a good quarter in the container ship, driven by good volume development, especially in exports to Iceland and the Atlantic Service, and active revenue management. The service of freezer vessels in Norway was also successful due to high utilization and improved balance. In international freight forwarding, we achieved strong results in a market characterized by very high international prices and capacity constraints, and I am pleased to see record results in our Asian operations during the quarter.

The scope of transatlantic services has been steadily growing since 2017, when weekly voyages began. Since the first quarter of this year, we have had fully utilized vessels west to North America and the volume increase in the third quarter was 50% compared to the same quarter last year. The Trans-Atlantic volume enables us to offer our customers weekly services between Iceland and North America.

In a challenging global market environment, we have been able to provide our customers with excellent line and freight services and leverage our position as a leading North Atlantic freight forwarder with a strong international office system. We build on strong business relationships and the expertise of our employees and are well placed to focus on frozen and chilled raw materials.

Despite the challenging conditions in the international transport markets, the outlook for the fourth quarter is good and as a result we have updated our guidelines for the year ahead. ”

INVESTMENT MEETING NOVEMBER 10, 2021

The Board of Directors of Eimskipafélag Íslands hf. approved the Company’s condensed interim financial statements for the third quarter of 2021 at its meeting on November 9, 2021. Investors and market participants are invited to a meeting on Wednesday, November 10, 2021 at 8:30 at the company’s headquarters, Sundabakki 2, second floor. Participants must register before the end of November 9th. The meeting will also be shown live in Icelandic at www.eimskip.com/investors. Vilhelm Már Thorsteinsson, CEO, and María Björk Einarsdóttir, CFO, will present the company’s financial statements for the second quarter of 2021. An investor presentation and a recording of the meeting will be available on the company’s investor relations website.

FURTHER INFORMATION

Edda Rut Björnsdóttir, Managing Director of Human Resources and Communications, tel: +354 825 3399, e-mail: [email protected]

María Björk Einarsdóttir, Managing Director, phone: +354 825 7350, email: [email protected]

FUTURE STATEMENTS

Statements in this financial press release that refer to the Company’s projected or expected future results or future operations are forward-looking statements that reflect the Company’s current analysis of current developments, information and plans. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of capital, the timing and impact of control measures and other factors. Eimskip does not make any commitments and does not intend to update these forward-looking statements to reflect events or circumstances that occur after this press release. You are warned not to rely unnecessarily on these forward-looking statements, which only speak from the date of this press release. All statements about the future prospects are in their entirety subject to this precautionary statement.