Eimskipafélag Íslands hf.
Sundabakka 2
104 Reykjavík
Iceland
Reg. no. 690409-0460
Eimskipafélag Íslands hf.
Consolidated Financial Statements
for the year ended 31 December 2022
EUR
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3
7
11
12
13
14
15
16
Appendices:
47
48
49
55
Quarterly Statements - unaudited .............................................................................................................................................
Non-Financial Reporting ..............................................................................................................................................................
Consolidated Statement of Changes in Equity .........................................................................................................................
Consolidated Statement of Cash Flows .....................................................................................................................................
Notes to the Consolidated Financial Statements ......................................................................................................................
Corporate Governance Statement ..............................................................................................................................................
Key figures by quarter - unaudited .............................................................................................................................................
Contents
Endorsement and Statement by the Board of Directors and the CEO .....................................................................................
Independent Auditors' Report .....................................................................................................................................................
Consolidated Statement of Comprehensive Income .................................................................................................................
Consolidated Statement of Financial Position ..........................................................................................................................
Consolidated Income Statement ................................................................................................................................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
2
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Highlights & Operations in 2022
Endorsement and Statement by the Board
of Directors and the CEO
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 with focus on frozen and chilled commodities. Eimskip
offers its customers a broad range of services related to shipping, logistics and supply chain management solutions on land, sea and
air. Eimskip currently operates 56 offices in 20 countries. The Consolidated Financial Statement of the Group includes the financials
of the parent company and its subsidiaries. The Group consists of a total of 67 companies in addition to six foreign branches. In
addition the Company operates branch offices in Norway, Sweden, Denmark, the UK, Nederlands and Germany.
The Consolidated Financial Statements of Eimskipafélag Íslands hf. and its subsidiaries (together referred to as "Eimskip", "the
Group" or "the Company") are prepared and presented in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU and additional requirements for listed Icelandic companies. The Financial Statements are presented in thousands
of EUR.
Revenue amounted to EUR 1,070.6 million compared to EUR 882.7 million the year before and have never been higher in a calendar
year. EBITDA amounted to EUR 163.1 million, up from a reported EBITDA of EUR 104.1 million in 2021 and EBIT was EUR 101.5 million,
an increase from EUR 53.0 million in reported EBIT for the year 2021. Net earnings as reported for the year 2022 are a total of EUR
85.3 million (2021: EUR 40.4 million) according to the Consolidated Income Statement.
Property, vessels and equipment increased by EUR 3.3 million in 2022 and amounted to a total of EUR 233.2 million by year-end.
Interest-bearing debt decreased by EUR 13.1 million in the period and amounted to EUR 133.7 million at the end of the year. Total
equity at 31 December 2022 amounted to EUR 309.2 million (2021: EUR 261.5 million) according to the Statement of Financial
Position. In 2022 the Company paid dividends to its shareholders equal to EUR 17.5 million, and reduced share capital by payment to
shareholders of EUR 7.6 million. Please refer to note 17 for further information.
Cash flow from operations increased from previous year and amounted to EUR 148.5 million, an increase of EUR 72.8 million from
2021. Subsequently, the Company’s liquidity position is strong, with cash and cash equivalents equal to EUR 69.9 million on 31
December 2022. The capital expenditure amounted to EUR 31.6 million, an increase of EUR 17.9 million from the previous year which
was unusually low due to e.g. long delivery times of equipment.
Eimskip had a successful year in 2022, with record financial results, driven by strong performance across all business segments.
Despite a decline in forwarding volume due to constraints in international shipping, elevated global freight rates during the first
three quarters of the year helped maintain solid results in the company’s international freight forwarding business which delivered
and EBITDA of EUR 43.6m in 2022, up by EUR 3.7m from previous year. From second half of the third quarter and especially in the
fourth quarter, market conditions eased and freight rates in most major trade lanes decreased significantly as a result of
recessionary global economy. This contributed to a decrease in EBITDA in forwarding services in Q4 compared to previous year.
However, there were signs of an increase in forwarding volume. The company experienced a YoY decrease of 11% in forwarding
volume but only a 2.9% decrease in the fourth quarter which was also the largest quarter in terms of forwarding volume in 2022.
A strong performance in the liner services delivered an EBITDA of EUR 119.5m, which is an increase of 45.1m from previous year. The
volume in Eimskip’s liner services saw an increase of 4.1% year-over-year, growing from 2,142 thousand tons in 2021 to 2,231
thousand tons in 2022. Majority of this increase is attributable to a strong growth in imports to Iceland, supported by the
robustness of the Icelandic economy, and high demand for Trans-Atlantic services. Notably, the Trans-Atlantic trade lane was the
only major international trade lane that did not experience a drop in freight rates in Q4.
The Company has maintained a strong focus on customer service, reliability and operational efficiency in the liner services to ensure
a healthy profitability of this asset-heavy segment, essential in enabling a sustainable level of investment. The Norwegian reefer
liner services performed well financially, despite some contraction in volume caused by the discontinuance of calling Murmansk on
the reefer liner services following the Russian invasion of Ukraine, and due to the company’s decision to redirect one vessel to
another trade lane during the summer, resulting in a lower overall capacity.
The war in Ukraine did affect the Company’s operations, e.g. in Norway as previously mentioned, as well as in exports from Iceland
and the Faroe Islands, with some disruptions to pelagic transportation into the region. Although the direct consequences of the war
were not substantial and did not pose a risk to the Company's operations, the macroeconomic impact of the war such as the energy
crisis in Europe, increased inflationary pressure, and shifts in the geopolitical landscape are considered a key risk for the Company in
the near future.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
3
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Highlights in 2022, continued
Corporate Governance
A long-term incentive program for key employees, in form of a share option plan, was approved at the Annual General Meeting on 17
March 2022. The Board of Directors has since allocated share options to certain key employees. The shares allocated under the Share
Option Plan amounted to 1,839,600 shares which constitutes 1.05% of the Company's share capital, thereof 1,090,620 shares were
allocated to the CEO and Executive Management. Please refer to note 6 for further information.
Eimskip's management is of the opinion that practicing good Corporate Governance is vital for Eimskip and is in the best interests of
the shareholders, employees and other stakeholders. The framework for Corporate Governance practices within Eimskip consists of
the provisions of law, the parent company's Articles of Association, Rules of Procedures for the Board of Directors and Board's
subcommittee and various company policies, Rules for Issuers of Financial Instruments listed at Nasdaq Iceland and the 6th edition
of Corporate Governance Guidelines issued by the Iceland Chamber of Commerce, SA – Confederation of Iceland Enterprise and
Nasdaq Iceland.
On 30 May 2022 the Board of Directors initiated a share buy-back program in accordance with the approval of Eimskip Annual
meeting on 17 March. The number of shares to be acquired under the buy-back program were up to 1,730,000. During the second
quarter Eimskip purchased all the shares with a purchase price of ISK 830.7 million or EUR 5.5 million. The share buy-back was
completed on 30 June 2022. The main purpose of the share buy-back was to reduce the Company's share capital and to fulfill the
Company's obligation in accordance with the stock option plan of the Company.
On 18 August 2022 the Board of Directors initiated a share buy-back program in accordance with the approval of Eimskip Annual
meeting on 17 March. The number of shares to be acquired under the buy-back program were up to 1,700,000. During the third
quarter Eimskip purchased shares with a purchase price of ISK 934.1 million or EUR 7.1 million. The share buy-back was completed
on 11 October 2022. The main purpose of the share buy-back was to reduce the Company's share capital.
The Board of Directors proposes a dividend payment to shareholders in 2023 in the amount of ISK 20.08 per share. The proposed
dividend payment is ISK 3.4 billion, or approximately EUR 22.5 million, which represents 26% of net earnings for the year 2022.
Outlook and uncertainties
The outlook in the beginning of the year 2023 is marked by macro-economic uncertainty with rising recessionary pressure in major
economies. High inflation and geopolitical tension are contributing to softening demand and a sharp decline in global freight rates,
particularly in trade lanes connected to Asia. Eimskip has started to experience some effects of this sharp turnaround in the freight
markets through its forwarding operations, with margins trending downward in recent months. However, Eimskip’s specialization in
reefer logistics provides an advantage as frozen and refrigerated goods are generally more resistant to economic cycles.
Corporate Governance practices are designed to ensure open and transparent relationship between the Company's management, its
Board of Directors, its shareholders, and other stakeholders. Management has emphasized and increased level of information shared
with investors and other stakeholders in quarterly reporting as well as communication with customers on current affairs. The
Corporate Governance in Eimskip is also designed to ensure sound and effective control of the Company's affairs and a high level of
business ethics. Further information is provided in the Corporate Governance Statement which is an appendix to these Financial
Statements.
Endorsement and Statement by the Board
of Directors and the CEO
The Annual General Meeting furthermore approved a dividend payment to shareholders as well as a share capital reduction with a
cash payment to shareholders. Please refer to note 17 for further information.
In the liner segment, Eimskip is strongly positioned as a shipping line mainly servicing wealthy economies in the North-Atlantic.
Eimskip’s home market covers Northern Norway, Faroe Islands, Iceland, Greenland, Newfoundland, and the New England area in the
United States. This area is rich in natural resources with a strong fishing heritage, a highly skilled labor force, and economies that are
heavily reliant on import and export. At the start of 2023, demand for Eimskip’s shipping services is strong. However, if the global
economic slowdown continues it is likely to soften demand in Eimskip’s core trades.
The easing of the global supply chain disruption that characterized the shipping industry from 2020 and through most of 2022,
causing various operational difficulties, is one of the factors that is putting pressure on the forwarding rates. At the same time, this
alleviation has positively affected operational challenges such as employee retention and service deviations by third party
transportation suppliers.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
4
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Corporate Governance, continued
Share capital and articles of association
Shareholder:
1.
Seley ehf
1)
….................................................................................................
56,748,532 33.46% 57,453,585 32.80%
2.
Gildi - lífeyrissjódur
2)
…................................................................................
21,781,520 12.84% 19,510,224 11.14%
3.
Lífeyrissjódur verzlunarmanna
3)
…...............................................................................................................................
21,244,276 12.53% 21,574,181 12.32%
4.
Lífeyrissjódur starfsmanna ríkisins A-deild and B-deild …............................
8,200,000 4.84% 8,800,000 5.02%
5.
Birta lífeyrissjódur …........................................................................................
8,105,035 4.78% 8,600,839 4.91%
6.
Stefnir hf.
4)
…..................................................................................................
7,379,087 4.35% 8,656,789 4.94%
7.
Stapi lífeyrissjódur …....................................................................................
6,997,710 4.13% 7,764,310 4.43%
8.
Sjóvá-Almennar tryggingar hf. …..................................................................
4,152,687 2.45% 3,466,777 1.98%
9.
Landsbréf
5)
…................................................................................................
3,120,862 1.84% 3,754,567 2.14%
10.
Lífsverk lífeyrissjóður ….............................................................................
2,722,551 1.61% 1,234,774 0.70%
29,136,433 17.18% 34,352,244 19.61%
169,588,693
100.00%
175,168,290
100.00%
3,461,307 31,710
173,050,000 175,200,000
Endorsement and Statement by the Board
Other shareholders …........................................................................................
Total outstanding shares …................................................................................
Treasury shares …..............................................................................................
Total issued shares ….........................................................................................
1)
Seley ehf. is 100% owned by Samherji Holding ehf., which transferred all of their shares to Seley ehf. in December 2022.
Shares in
%
2022
2021
Number of
shares
Number of
shares
Shares in
%
Active risk management plays an important role at Eimskip ensuring stable operations and earnings. The Company’s Treasury Policy
aims to minimize potential negative effects on operations and earnings from financial activities and to keep risk at acceptable
levels. Information on matters related to financial risk management is disclosed in note 21. Furthermore, the Company has an active
risk management program to map and manage the Company’s main risk exposure, both operational and financial.
Non-Financial Reporting
The Company complies with Article 63 of Act no. 2/1995 on Limited Liability Companies (Company Act), as the Company's Board of
Directors currently consists of three females and two males. The Executive Management and the CEO consists of seven males and
two females. The Company's gender ratio is 70% males, 30% females and 0% other genders. Further information on the number of
full-time equivalents is provided in note 6.
The Company is defined as a large Public Interest Entity according to the Icelandic Financial Statement Act. The Act states that
these companies should disclose as an attachment to the Endorsement of the Board of Directors and CEO relevant and useful
information on their policies, main risks and outcomes relating to environmental, social and employee matters, their human rights
policy and how they counteract corruption and bribery, in addition to a short description of the Company's business model. The
Company's policies and outcome of these matters are further discussed in the Non-Financial Reporting which is an appendix to
these Consolidated Financial Statements. In November 2020 Eimskip conducted an ESG risk assessment (Environmental, Social, and
Governance) and ESG targets for the next three years plans were developed. Eimskip has now published its Sustainability Statement
for 2022 that reflects the ESG guidelines issued by Nasdaq Iceland and the Nordic countries in March 2017. Please refer to the
Company's website.
of Directors and the CEO
The number of shareholders at year-end 2022 was 984 which was a increase of 133 from the beginning of year. The Company's ten
largest shareholders at the year-end are the following:
2)
Gildi lífeyrissjódur, Gildi lífeyrissjódur/Framtídarsýn 1 and 2 with total shareholding of 12.84%
3)
Lífeyrissjódur verzlunarmanna, Lífeyrissjódur verzlunarmanna/Ævileid 1 and 2 with total shareholding of 12.53%
4)
The shareholders are Stefnir - Innlend hlutabréf, Stefnir- ÍS-5, Stefnir - Ardgreidslusjodur and Stefnir Sustainable Artic
5)
The shareholders are Landsbréf - Úrvalsbréf, Landsbréf - Öndvegisbréf, Landsbréf - Hekla, Landsbréf - LEQ-UCITS ETF and
Landsbréf - LEQ150 ETF.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
5
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CEO:
Vilhelm Már Thorsteinsson
Reykjavík, 14 February 2023
Board of Directors:
Óskar Magnússon, Chairman
Margrét Guðmundsdóttir, Vice-Chairman
Guðrún Ó. Blöndal, Board Member
Further, in our opinion the Consolidated Financial Statements and the Endorsement by the Board of Directors and the CEO give a fair
view of the development and performance of Eimskip's operations and its position and describe the principal risks and uncertainties
faced by Eimskip.
In our opinion, the Consolidated Financial Statements of Eimskipafélag Íslands hf. for the year 2022 identified as
“549300IUR8Q7Y44KBL02-2022-12-31-en.zip” are prepared in all material respects, in compliance with the ESEF Regulation.
The Board of Directors and the CEO have today discussed the Consolidated Financial Statements of Eimskipafélag Íslands hf. for the
year 2022 and confirm them by means of their signatures. The Board of Directors and the CEO recommend that the Consolidated
Financial Statements will be approved at the Annual General Meeting of Eimskipafélag Íslands hf.
Lárus L. Blöndal, Board Member
Ólöf Hildur Pálsdóttir, Board Member
of Directors and the CEO
The Company's Board of Directors consists of five Directors and two alternate Directors, all elected at an annual general meeting in
March 2022. Those who intend to run for the Board of Directors shall notify the Board of Directors of their candidacy at least ten
days before a shareholders' meeting. The Company's articles of association may only be amended by a lawful shareholders' meeting,
as long as the proposal for the amendment is described in the invitation to the meeting. The decision to amend the articles of
association will only be valid if it is approved by 2/3 of the votes and approved by shareholders controlling at least 2/3 of the votes
represented at the shareholders' meeting.
Further information on matters related to the share capital is disclosed in note 17. Additional information on shareholders is
provided on the Company's website, www.eimskip.is/investors.
Statement by the Board of Directors and the CEO
According to the best of our knowledge, it is our opinion that these annual Consolidated Financial Statements give a true and fair
view of the consolidated financial performance of Eimskip for the year 2022, its assets, liabilities and consolidated financial position
as at 31 December 2022 and its consolidated cash flows for the year 2022.
Endorsement and Statement by the Board
Share capital and articles of association, continued
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
6
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To the Board of Directors and the shareholders of Eimskipafélag Íslands hf.
Opinion
Our opinion is consistent with our additional report to the audit committee and the board of directors.
The consolidated financial statements comprise
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-
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Basis for Opinion
Independence
Key Audit Matters
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The endorsement and statement by the board of directors and the CEO and appendices to the financial statements are excluded
from the audit, refer to section reporting on other information.
The non-audit services that we have provided to the group and its subsidiaries, in the period from January 1, 2022 to December 31,
2022, are disclosed in note 24 to the consolidated financial statements.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the group and its
subsidiaries are in accordance with the applicable law and regulations in Iceland and that we have not provided non-audit services
that are prohibited under Article 5.1. of Regulation (EU) No. 537/2014.
Independent Auditors' Report
We have audited the accompanying consolidated financial statements of Eimskipafélag Íslands hf. and its subsidiaries (the group)
for the year 2022, excluding the endorsement and statement by the board
of directors and the CEO.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the group
as at December 31, 2022, and of its consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the European Union (EU), and applicable articles in
Icelandic law on annual accounts.
We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are
further described in the auditor’s responsibilities for the audit of the consolidated financial statements section of our report.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We are independent of the group in accordance with Icelandic laws on auditors and auditing and the code of ethics that apply to
auditors in Iceland and relate to our audit of the group's consolidated financial statements. We have fulfilled our other ethical
responsibilities in accordance with these requirements.
Notes to the consolidated financial statements, which include significant accounting policies and other explanatory
information.
Consolidated statement of changes in equity for the year ended December 2022.
Consolidated statement of financial position as at 31 December 2022.
Consolidated statement of cash flows for the year 2022.
Consolidated statement of comprehensive income for the year 2022.
Consolidated income statement for the year 2022.
Endorsement and statement by the Board of Directors and the CEO.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
7
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Key Audit Matters How the matter was addressed in our audit
Revenue recognition
Our audit procedures included:
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- Testing the accounting treatment and principles applied.
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- Accounts receivable confirmations.
Reporting on other information, including the endorsement and statement by the board of directors and the CEO
Responsibilities of the Board of Directors and the Chief Executive Officer
Our opinion on the consolidated financial statements does not cover the other information, including the endorsement and
statement by the board of directors and the CEO.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. In addition, in light of the
knowledge and understanding of the entity and its environment obtained in the course of the audit, we are required to report if
we have identified material misstatements in other information that we obtained prior to the date of this auditor’s report. We
have nothing to report in this respect.
With respect to the endorsement and statement by the board of directors and the CEO we have, in accordance with article 104, of
the Icelandic law on annual accounts reviewed that to the best of our knowledge, the endorsement and statement by the board of
directors and the CEO accompanying the consolidated financial statements includes applicable information in accordance with
Icelandic law on annual accounts if not presented elsewhere in the consolidated financial statements.
The board of directors and the chief executive officer are responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with International Financial Reporting Standards as adopted by the EU, and applicable articles
in Icelandic law on annual accounts, and for such internal control as determined necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
Operating revenue amounts to EUR 1.070.626 thousand in
the year 2022.
Recognition of revenue consists of high volume of
transactions and different types of logistic contracts with
individually negotiated terms.
We focused on this area due to the significance of amounts
involved and because recognition of revenue involves
accounting policy decisions and judgements made by
management.
Further, the volume of transactions and extent of different
contracts require various IT setups to ensure correct
revenue recognition.
Considering the appropriateness of the revenue recognition
accounting policies and assessing compliance with applicable
accounting standards.
Obtaining understanding of the revenue and accounts
receivable accounting process.
Data analytics on selected revenue streams and testing
journal entries on revenue.
Reference is made to notes 5 and 28.k. in the consolidated
financial statements.
Independent Auditors' Report
Relevant notes have been reviewed.
The board of directors and chief executive officer are responsible for other information. The other information comprises of the
endorsement and statement by the board of directors and the CEO and appendices to the consolidated financial statements,
including quarterly statements, key figures by quarter, corporate governance statement and non-financial reporting, which we
obtained prior to the date of this auditor’s report.
Substantive procedures over invoicing, contracts and other
supporting documents.
Detailed testing on timing to ensure that the revenue is
recognised in the correct financial year.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
8
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Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Independent Auditors' Report
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair
In preparing the consolidated financial statements, management is responsible for assessing the groups' ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the group or to cease operations, or has no realistic alternative but to do so. The Group's
management must provide appropriate explanations regarding its ability to continue as going concern, if applicable, and why
management applies the presumption of going concern in the preparation and presentation of the consolidated financial
statements
Those charged with governance are responsible for overseeing the group's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards
on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
9
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Report on Other Legal and Regulatory Requirements
Report on European single electronic format (ESEF Regulation)
Appointment
Reykjavík, 14 February 2023
PricewaterhouseCoopers ehf.
Bryndís Björk Guðjónsdóttir
certified public accountant
Kristinn Freyr Kristinsson
certified public accountant
We were first appointed as auditors at the company's annual general meeting on March 25, 2021. Our appointment has been
renewed at the company's annual general meeting representing a total period of uninterrupted engagement appointment of two
years.
The board of directors and chief executive officer are responsible for preparing the consolidated financial statements in accordance
with law no. 20/2021. This responsibility includes preparing the consolidated financial statements in a XHTML format in
accordance to EU regulation no. 2019/815 on the european single electronic format (ESEF regulation).
Our responsibility is to obtain reasonable assurance, based on evidence that we have obtained, on whether the consolidated
financial statements are prepared in all material respects, in accordance with the ESEF Regulation, and to issue a report that
includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the
assessment of the risks of material departures from the requirements set out in the ESEF regulation, whether due to fraud or
error.
In our opinion, the consolidated financial statements of Eimskipafélag Íslands hf. for the year 2022 with the file name
549300IUR8Q7Y44KBL02-2022-12-31-en.zip is prepared, in all material respects, in accordance with the European single electronic
format regulation EU no. 2019/815.
Independent Auditors' Report
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
As part of our audit of the consolidated financial statements of Eimskipafélag Íslands hf. we performed procedures to be able to
issue an opinion on whether the consolidated financial statements of Eimskipafélag Íslands hf. for the year 2022 with the file
name 549300IUR8Q7Y44KBL02-2022-12-31-en.zip is prepared, in all material respects, in accordance with law no. 20/2021 Act on
securities issuer obligations to issue information and self-report relating to requirements under the European single electronic
format regulation EU no. 2019/815, which include requirements concerning preparation of the consolidated financial statements in
XHTML format and iXBRL markup.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
10
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Notes 2022 2021
5
6
5
10-12 61,618 )( 51,010 )(
7 8,900 )( 7,555 )(
13
8
(
(
9
9
0.4846
0.2169
The notes on pages 16 to 46 are an integral part of these Consolidated Financial Statements.
Diluted earnings per share (EUR per share) .........................................................................
Equity holders of the Company ............................................................................................
Earnings per share:
Finance income ......................................................................................................................
Income tax .............................................................................................................................
Finance expense ....................................................................................................................
Net earnings before income tax
..................................................................................
Net earnings for the year
...............................................................................................
Non-controlling interest ........................................................................................................
Net earnings for the year attributable to:
Share of earnings of equity-accounted investees ..............................................................
Net finance expense ..............................................................................................................
Net foreign currency exchange loss .....................................................................................
Basic earnings per share (EUR per share) ............................................................................
Operating expenses ...............................................................................................................
Salaries and related expenses ..............................................................................................
Operating profit, EBITDA
.................................................................................................
Depreciation, amortization and impairment .......................................................................
Results from operating activities, EBIT
.....................................................................................
Settlement with the Icelandic Competition Authority .......................................................
Consolidated Income Statement
for the year 2022
Revenue
Expenses
Operating revenue .................................................................................................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
11
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
Notes 2022 2021
Items that are or may subsequently be reclassified to the income statement
8,21 2,064 17 )(
The notes on pages 16 to 46 are an integral part of these Consolidated Financial Statements.
Total comprehensive income for the year attributable to:
Equity holders of the Company ............................................................................................
Non-controlling interest ........................................................................................................
Consolidated Statement of Comprehensive Income
for the year 2022
Total comprehensive income for the year ..............................................................
Net earnings for the year ..........................................................................................................................................
Other comprehensive income:
Foreign currency translation difference of foreign operations ..........................................
Effective portion of changes in fair value of cash flow hedges, net of income tax .........
Fair value changes of minority put option liability ..............................................................
Total other comprehensive income for the year ..............................................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
12
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
Notes
2022
2021
Assets:
10
11
12
13
14
15,21
16
Equity:
Total equity attributable to equity holders of the parent company
17
Liabilities:
18
19
25
14
18
19
20
The notes on pages 16 to 46 are an integral part of these Consolidated Financial Statements.
Consolidated Statement of Financial Position
as at 31 December 2022
Total liabilities
Total current liabilities
Share capital ......................................................................................................................
Total assets
Total current assets
Inventories ........................................................................................................................
Trade and other receivables ............................................................................................
Cash and cash equivalents ...............................................................................................
Total equity and liabilities
Share premium .................................................................................................................
Reserves ............................................................................................................................
Retained earnings .............................................................................................................
Non-controlling interest ...................................................................................................
Loans and borrowings ......................................................................................................
Loans and borrowings ......................................................................................................
Trade and other payables .................................................................................................
Income tax payable ...........................................................................................................
Total equity
Total non-current liabilities
Deferred tax liability .........................................................................................................
Other long-term liabilities ................................................................................................
Lease liabilities .................................................................................................................
Lease liabilities .................................................................................................................
Total non-current assets
Property, vessels and equipment ....................................................................................
Intangible assets ..............................................................................................................
Equity accounted investees .............................................................................................
Finance assets ..................................................................................................................
Deferred tax assets ..........................................................................................................
Right-of-use assets ..........................................................................................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
13
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________________________________________________________________________________
Trans- Un- Non-
Share Share lation Other distributed Retained controlling Total
capital premium reserve reserves* profits earnings Total interest equity
* Other reserves include hedging reserve, share option reserve and reserve for fair value changes of minority put options. Please refer to note 17 for further information.
The notes on pages 16 to 46 are an integral part of these Consolidated Financial Statements.
Changes in Equity 2021:
Equity at 1 January 2021 ..........................................................................................
Consolidated Statement of Changes in Equity
Changes in Equity 2022:
Equity at 1 January 2022 ..........................................................................................
for the year ended 31 December 2022
Total comprehensive income for the period ..........................................................
Profit of subsidiaries net of dividend received ......................................................
Reserves
Attributable to equity holders of the Company
Reserves ..................................................................................................................
Equity at 31 December 2021 ....................................................................................
Equity at 31 December 2022 ...................................................................................
Share capital reduction ...........................................................................................
Share capital reduction ...........................................................................................
Minority put option exercised
Profit of subsidiaries net of dividend received ......................................................
Other changes in non-controlling interest ............................................................
Dividend paid (0.0166 EUR per share) ..................................................................
Dividend paid (0.0998 EUR per share) ...................................................................
Other changes in non-controlling interest ............................................................
Total comprehensive income for the period ..........................................................
Purchased treasury shares .....................................................................................
Changes in share options reserve ..........................................................................
Reserves ..................................................................................................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
14
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
Notes 2022 2021
Cash flows from operating activities:
10-12
7
13
(
(
8,14
(
(
(
(
(
Change in current assets and liabilities
(
(
(
(
(
Net cash from operating activities
Cash flows from investing activities:
10
(
(
12
(
(
11
(
(
(
(
Net cash used in investing activities
(
(
Cash flows from financing activities:
(
(
(
(
(
(
(
18
18
(
(
19
(
(
(
Net cash used in financing activities
(
(
(
Investing and financing activities not affecting cash flows:
11
15,254)
(
77,706)
(
19
15,254
77,706
10
1,814)
(
0
1,814
0
The notes on pages 16 to 46 are an integral part of these Consolidated Financial Statements.
Short term borrowings, change .......................................................................................
Acquisition of right-of-use assets ..................................................................................
Aquisition of right-of-use assets ....................................................................................
Minority put options exercised ........................................................................................
Receivables, change ......................................................................................................
Changes in finance assets ................................................................................................
Payables, change ...........................................................................................................
Interest paid ..................................................................................................................
Interest received ...........................................................................................................
Taxes paid ......................................................................................................................
Acquisition of property, vessels and equipment ............................................................
Acquisition of intangible assets ......................................................................................
Proceeds from the sale of property, vessels and equipment ........................................
Repayment of lease liabilities .........................................................................................
Purchased treasury shares ...............................................................................................
Consolidated Statement of Cash Flows
for the year 2022
Changes in current assets and liabilities:
Adjustments for:
Depreciation, amortization and impairment ...............................................................
Net earnings for the year .................................................................................................
Share of earnings of equity-accounted investees ......................................................
Net finance expense .....................................................................................................
Change in deferred taxes ..............................................................................................
Other changes ...............................................................................................................
Reclassified fixed asset ....................................................................................................
Inventory, change .............................................................................................................
Share capital reduction .....................................................................................................
Dividend from equity accounted investee ......................................................................
New or renewed leases .....................................................................................................
Inventories, change .......................................................................................................
Effects of exchange rate fluctuations on cash held ........................................................................................
Proceeds from non-current loans and borrowings .........................................................
Repayment of non-current loans and borrowings .........................................................
Cash and cash equivalents at year-end
..................................................................................
Changes in cash and cash equivalents ......................................................................................................
Cash and cash equivalents at the beginning of the year ............................................................................
Dividend paid to equity holders of the company ............................................................
Dividend paid to non-controlling interest and other changes .......................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
15
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
General presentation Page
1
Reporting entity ..............................................................................................................................................................
17
2
Basis of accounting .........................................................................................................................................................
17
3
Measurement of fair values ...........................................................................................................................................
17
4
Changes in significant accounting policies ....................................................................................................................
17
28
Significant accounting policies .......................................................................................................................................
39
29
Standards issued but not yet effective .........................................................................................................................
46
Notes to the Consolidated Income Statement
5
Segment reporting ..........................................................................................................................................................
18
6
Salaries and related expenses ........................................................................................................................................
20
7
Finance income and expense ..........................................................................................................................................
20
8
Income tax .......................................................................................................................................................................
21
9
Earnings per share ...........................................................................................................................................................
21
Notes to the Consolidated Statement of Financial Position
10
Property, vessels and equipment ...................................................................................................................................
22
11
Right-of-use assets ........................................................................................................................................................
23
12
Intangible assets .............................................................................................................................................................
24
13
Investment in equity-accounted investees ...................................................................................................................
25
14
Deferred tax assets and liabilities ..................................................................................................................................
26
15
Trade and other receivables ...........................................................................................................................................
27
16
Cash and cash equivalents ..............................................................................................................................................
27
17
Capital and reserves ........................................................................................................................................................
27
18
Loans and borrowings .....................................................................................................................................................
29
19
Lease liabilities ................................................................................................................................................................
30
20
Trade and other payables ................................................................................................................................................
30
21
Financial risk management .............................................................................................................................................
30
Other information
22
Leases ..............................................................................................................................................................................
35
23
Related parties ................................................................................................................................................................
35
24
Auditor's fees ..................................................................................................................................................................
36
25
Group entities ..................................................................................................................................................................
37
26
Other matters ..................................................................................................................................................................
37
27
Subsequent events .........................................................................................................................................................
38
Notes to the Consolidated Financial Statements
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
16
___________________________________________________________________________________________________________________________________________
1. Reporting entity
2. Basis of accounting
Notes to the Consolidated Financial Statements
Financial Statements of the Company for the year ended 31 December2022 comprise the Company and its subsidiaries
(together referred to as "Eimskip” or the "Group"). The Parent Company is an investment company focused on investments
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
17
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
18
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
19
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
20
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
21
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
22
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
23
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
24
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
25
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
26
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
27
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
28
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
29
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
30
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
31
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
32
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
33
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
34
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
35
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
36
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
37
Amounts are in thousands of EUR
__________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
38
Amounts are in thousands of EUR
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
39
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
40
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
41
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
42
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
43
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
44
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
45
___________________________________________________________________________________________________________________________________________
Notes
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
46
___________________________________________________________________________________________________________________________________________
Year 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2022
239,684 283,115 292,173 255,654 1,070,626
209,298 238,362 242,595 217,285 907,540
30,386 44,753 49,578 38,369 163,086
15,298)( 14,928)( 15,501)( 15,891)( 61,618)(
15,088 29,825 34,077 22,478 101,468
2,060)( 2,376)( 2,664)( 1,800)( 8,900)(
803 3,658 3,866 4,823 13,150
13,831 31,107 35,279 25,501 105,718
3,376)( 6,203)( 7,142)( 3,702)( 20,423)(
10,455 24,904 28,137 21,799 85,295
Year 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021
180,228 211,134 236,607 254,748 882,717
163,919
191,639
199,831
223,269
778,658
16,309 19,495 36,776 31,479 104,059
11,797)( 12,243)( 12,962)( 14,008)( 51,010)(
4,512 7,252 23,814 17,471 53,049
1,196)( 2,060)( 2,909)( 1,390)( 7,555)(
221 957 4,071 1,919 7,168
3,537 6,149 24,976 18,000 52,662
703)( 3,031)( 4,256)( 4,281)( 12,271)(
2,834 3,118 20,720 13,719 40,391
* Expenses in Q2 2021 included settlement with the Icelandic Competition Authority in the amount of EUR 10.2 million.
Net earnings ..........................................................................................
Income tax ..........................................................................................
Quarterly statements - unaudited
Revenue ..................................................................................
Operating profit, EBITDA ..........................................................................................
Depreciation, amortization and impairment .....................
Expenses ..........................................................................................
Results from operating activities, EBIT ..........................................................................................
Net finance expense ..........................................................................................
Net earnings before income tax ..........................................................................................
Share of profit of equity accounted investees ...................
Income tax ............................................................................
Net earnings ..........................................................................................
Expenses* ..........................................................................................
Revenue ..................................................................................
Net earnings before income tax ..........................................................................................
Operating profit, EBITDA ..........................................................................................
Depreciation and amortization ............................................
Results from operating activities, EBIT ..........................................................................................
Share of loss of equity accounted investees ....................
Net finance expense .....................................................................................................
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
47
_______________________________________________________________________________________
Amounts are in thousands of EUR
OPERATING RESULTS Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021
Revenue 255,654 292,173 283,115 239,684 254,748 236,607 211,134 180,228
Expenses 217,285 242,595 238,362 209,298 223,269 199,831 191,639 163,919
Salaries and
related expense 35,296 33,425 34,943 32,306 32,850 29,611 30,613 29,231
Settlement with ICA - - - - 10,219 0
EBITDA 38,369 49,578 44,753 30,386 31,479 36,776 19,495 16,309
EBIT 22,478 34,077 29,825 15,088 17,471 23,814 7,252 4,512
Net earnings for the period 21,799 28,137 24,904 10,455 13,719 20,720 3,118 2,834
EBITDA ratio 15.0% 17.0% 15.8% 12.7% 12.4% 15.5% 9.2% 9.0%
EBIT ratio 8.8% 11.7% 10.5% 6.3% 6.9% 10.1% 3.4% 2.5%
Profit ratio 8.5% 9.6% 8.8% 4.4% 5.4% 8.8% 1.5% 1.6%
Basic earning per
share (in EUR) 0.1275 0.1622 0.1395 0.0567 0.0731 0.1148 0.0157 0.0143
Diluted earning per
share (in EUR) 0.1275 0.1622 0.1395 0.0567 0.0731 0.1148 0.0157 0.0143
Average FTE's 1,717 1,681 1,660 1,634 1,624 1,623 1,623 1,607
BALANCE SHEET 31.12.2022 30.09.2022 30.06.2022 31.03.2022 31.12.2021 30.09.2021 30.6.2021
Assets 666,659 677,125 663,618 655,891 634,324 597,976 567,930 552,539
Equity 309,165 296,189 270,090 251,032 261,465 246,874 225,669 222,022
Liabilities 357,494 380,936 393,528 404,859 372,859 351,102 342,261 330,517
Interest-bearing debt 237,903 243,932 252,790 260,767 266,830 242,314 234,644 225,176
Loans and borrowings 133,741 138,164 140,608 144,061 146,833 150,645 164,442 159,003
Lease liabilities 104,162 105,768 112,182 116,706 119,997 91,669 70,202 66,173
Net debt 164,900 192,436 212,325 205,891 225,994 213,234 215,253 203,649
Equity ratio 46.4% 43.7% 40.7% 38.3% 41.2% 41.3% 39.7% 40.2%
Leverage ratio 1.01 1.23 1.48 1.60 1.98 2.18 2.98 2.97
Current ratio 1.53 1.48 1.38 1.27 1.42 1.45 1.39 1.28
CASH FLOW Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021
Net cash from
operating activities 51,174 37,204 31,298 28,779 28,835 27,042 12,336 7,770
Net cash used in
investing activities (11,873) (10,996) (4,528) (3,260) (6,581) 3,149 (2,522) (162)
Net cash used in
financing activities (14,412) (17,432) (41,570) (11,154) (10,405) (20,239) (11,709) (6,224)
Cash and cash equivalents
at the end of the period 69,937 46,554 36,852 51,234 36,986 25,081 15,385 17,212
New investments 2,873 6,103 498 255 1,587 84 593 (13)
Maintenance capex 10,465 5,016 4,616 4,100 4,409 3,861 3,292 1,568
Distribution to shareholders
0 0 25,068 0 0 0 14,175 0
Share buy back 1,417 5,674 5,548 0 0 0 0 0
Key figures by quarter - unaudited
Q1 2021
31.3.2021
Q1 2021
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022 48
___________________________________________________________________________________________________________________________________________
About Eimskip
Corporate Governance
Laws and regulations
Eimskip's Financial Statements
Shareholder Relations
The Board of Directors of Eimskip
With this statement on the Corporate Governance of Eimskip it is declared that the Company is complying with the accepted
practices in the 6th edition of Corporate Governance Guidelines, issued by the Iceland Chamber of Commerce, SA - Business
Iceland and Nasdaq Iceland.
Company news that are considered to affect Eimskip’s share price are published through the company news release distribution
network of Nasdaq Iceland and on the Company’s IR website, www.eimskip.com/investors. Other news is published on the
Company’s website, www.eimskip.com.
Proposals or questions from shareholders to the Board of Directors shall be sent to investors@eimskip.com and
complianceofficer@eimskip.com.
Corporate Governance Statement
Eimskipafélag Íslands hf. (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.
Corporate Governance practices are designed to ensure open and transparent relationship between the Company's management,
its Board of Directors, its shareholders, and other stakeholders. The Corporate Governance in Eimskip is also designed to ensure
sound and effective control of the Company’s affairs and a high level of business ethics.
The Corporate Governance Statement of Eimskip is accessible on the Company’s website, www.eimskip.com/investors, and is
published in a special chapter in the Company’s Financial Statements.
The Corporate Governance Guidelines are accessible on https://leidbeiningar.is/english/
Eimskip is a limited liability company and has its shares listed on Nasdaq Iceland and is therefore governed by Act no. 2/1995 on
Limited Liability Companies (Company Act), Act no. 3/2006 on Annual Accounts, laws and regulations that apply to listed
companies, along with its Articles of Association, Rules of Procedures for the Board of Directors and Board’s subcommittees and
various Company policies. Acts are accessible on the Parliament’s website, www.althingi.is and rules and policies on the
Company’s investor website.
The supreme authority of the Company is in the hands of the shareholders who attend shareholders’ meetings at least once a
year. Share register is held at the Company’s headquarters where it is available to shareholders.
The Board of Directors holds supreme authority between shareholders’ meetings. It shall ensure that the Company’s organization
and operations are in good order. It shall promote the development and long-term performance of the Company and supervise its
operations. The Board of Directors has statutory role which it is responsible for, unless the Board grants permission by law to
transfer authority by delegation.
Eimskip’s financial year is the calendar year. The Company’s Financial Statements are accessible on the Company’s website,
www.eimskip.com.
Board meetings are called with one-week notice. A meeting schedule is made for the financial year in advance. The invitation
contains the agenda for the meeting. The CEO and the CFO attend Board meetings and other members of the Executive
Management attend as required. The General Counsel serves as secretary to the Board. In 2022, the total number of Board
meetings was 15 and the Board was competent to make decisions in all meetings.
The Board consists of five Directors and two alternate Directors and they are all elected annually at the Annual General Meeting.
Those who intend to run for the Board of Directors shall notify the Board of Directors of their candidacy at least ten days before a
shareholders’ meeting. The majority of the Directors of the Board are independent of the Company and its day-to-day
management, and four Directors are independent of the Company’s significant shareholders. The alternate members of the Board
are either independent or not independent of the Company or its significant shareholders. The Board evaluates whether Directors
are independent of the Company and its significant shareholders. Moreover, the Board evaluates the independence of new
Directors before the Company’s Annual General Meeting and makes available to shareholders the result of its evaluation.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
49
___________________________________________________________________________________________________________________________________________
Main responsibilities of the Board of Directors
-
-
-
-
-
Rules of Procedure for the Board of Directors
Members of the Audit Committee are Lárus L. Blöndal, Chairman, Ólöf Pálsdóttir and Alexander G. Edvardsson. In 2022, the Audit
Committee held a total of eight meetings and was competent to make decisions in all meetings.
The role of the Nomination Committee is to assist the Board with the process and oversight of Board succession planning and
identification and nomination of Board candidates as well as member of the Board’s committees. The Board is responsible for the
appointment and activities of the Nomination Committee and it operates under the Board’s authority. The role and main
responsibilities of the Nomination Committee are set out in its rules of procedure.
Annually, the Board of Directors conducts an assessment of its work, size, composition and procedures and also evaluates the
work of the Company’s CEO, the Company’s operations and development and whether it is in line with the Company’s objectives.
The assessment entails e.g. evaluation of the strengths and weaknesses of the Board’s work and practices and takes into
consideration the work components the Board believes may be improved. The evaluation is built on self-assessment, but the
assistance of outside parties may be sought as appropriate. The evaluation includes an examination of whether the Board has
operated in accordance with its Rules of Procedure and how the Board operates in general. Examination must be made whether
important matters relating to the Company have been adequately prepared and if enough time is provided for discussions within
the Board. Additionally, individual Directors must be considered with respect to both attendance and participation in meetings.
The assessment for the financial year 2022 was concluded in the first quarter of 2023.
The principal duties of the Audit Committee are to review all financial information and procedures regarding information
disclosure from day-to-day management and the Company’s independent auditors and to ensure the independence of the
Company’s independent auditors. The role and main responsibilities of the Audit Committee are set out in its rules of procedure.
Corporate Governance Statement
The Board of Directors has established its Rules of Procedure which were amended and approved at a Board meeting on 26 April
2019. A copy can be obtained from the Company’s investors website, www.eimskip.com.
The role of the Remuneration Committee includes preparing the Company’s remuneration policy and ensuring its enforcement
and negotiating with the CEO on wages and other employment terms. The role and main responsibilities of the Remuneration
Committee are set out in its rules of procedure.
The Board of Directors has appointed three subcommittees, Audit Committee, Remuneration Committee and Nomination
Committee.
Members of the Nomination Committee are Margrét Guðmundsdóttir, Chairman, Lárus L. Blöndal and Óskar Magnússon. In 2022,
the Nomination Committee held a total of three meetings.
Members of the Remuneration Committee are, Óskar Magnússon, Chairman, Gudrún Blöndal and Baldvin Thorsteinsson. In 2022,
the Remuneration Committee held a total of three meetings and was competent to make decisions in all meetings.
To handle the recruitment and dismissal of the Company’s CEO.
Extraordinary or major matters which require the approval of four out of five Directors and are therefore not a part of the CEO’s
day-to-day operations are defined in the Rules of Procedure for the Board of Directors.
To take the initiative, together with the CEO, on formulating policies and setting goals and risk parameters for the Company,
both in the short and long term.
To establish an active system of internal controls. This means, among other things, that the arrangement of the internal
controls system shall be formalized, documented and its functionality verified regularly.
To ensure that the Company’s operations are in conformity with existing laws and regulations.
To hold supreme authority between shareholders’ meetings, promote the development and long-term performance of the
Company and supervise its operations. The Board shall regularly assess the performance of the Company’s executive
directors and how the Company’s policies are implemented.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
50
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The Board of Directors
Óskar Magnússon, Chairman of the Board
Margrét Guðmundsdóttir, Vice-Chairman of the Board
Guðrún Ó.Blöndal
Corporate Governance Statement
Óskar was born in 1954 and lives in Iceland. He is a well-known writer and has published two collections, short stories and
four novels in recent years. He is a farmer and co-owner and chairman of Kerfélagið ehf., the owner of the tourist nature
attraction Kerid Crater. Óskar has been a board member of Samherji hf. since 1998 and is currently the vice-chairman of the
board, as well as a board member of Seley ehf. and board member of several other companies within the Samherji group. He
is the chairman of the Icelandic landowners Association. He has previously been a vice-chairman of the Icelandic Bar
Association and served on various boards of retail companies. Óskar was Publisher/CEO and a major shareholder of Árvakur
hf. from 2009 to 2015, President/CEO of Tryggingamiðstöðin hf. and TM Life Insurance hf. from 2004 to 2007,
President/CEO of Vodafone Iceland from 2001 to 2004, Executive Chairman of Baugur from 1998 to 1999 and President/CEO
of Hagkaup hf. supermarkets, that later became part of Baugur Corporation, from 1993 to 1998. Óskar has served on the city
council in his community as well as being the parish chairman since 2004. Óskar has been a Supreme Court Attorney since
1993. He graduated with an LL.M. degree in International Business Law from George Washington University Law School in
1986, and with a Cand.jur. degree from the University of Iceland in 1983. He owns 14,349 shares in the Company, but no share
options. Óskar was a board member in 2019, an alternate member of the Board from 2020 to 2022 and is currently the
Chairman of the Board of Eimskipafélag Íslands, Chairman of the Remuneration Committee and a member of the
Nomination Committee. Óskar is not independent of Seley ehf., which holds, in total, 56.7 million shares in the Company, at
the year-end 2022.
Margrét was born in 1954 and lives in Iceland. She is a member of the board of Festi, board member of Eignarhaldsfélagið
Lyng ehf, Hekla hf., Hekla Fasteignir ehf. and Paradís ehf. Margrét was the Chairman of the European Surgical Trade
Association from 2011 to 2013 and a member of its Board from 2009 to 2015. She was the Chairman of Félag atvinnurekenda
from 2009 to 2013, a member of the Board of Reiknistofa bankanna from 2010 to 2011 and 2016 to 2018, the Board of Isavia
from 2017 to 2018 and the Board of SPRON from 2008 to 2009. Margrét was the CEO of Austurbakki, later Icepharma hf.,
from 2005 to 2016. Prior to that she was the Retail Manager of Skeljungur from 1995 to 2005, Director of various business
segments of Kuwait Petroleum (Denmark) A/S from 1986 to 1995 and HR Development Manager at Dansk ESSO (later
Statoil) from 1982 to 1986. Margrét was Assistant Secretary General of AIESEC International in Brussels from 1978 to 1979.
Margrét holds a Cand. oecon. degree in economics and business administration from the University of Iceland, a Cand. merc.
degree from the Copenhagen Business School and Executive education from CEDEP/Insead in France. Margrét owns 13,038
shares in the Company but no share options. Margrét has been a member of the Board since 25 March 2021 and is currently
the Vice-Chairman of the Board of Eimskipafélag Íslands hf. and a member of the Nomination Committee. She has no
interest links with the Company’s main clients, competitors, or major shareholders.
Guðrún was born in 1960 and lives in Iceland. Guðrún is a Board Member of Landsbankinn hf. and a member of the bank’s
Audit Committee and Remuneration Committee. From 2013 to 2018 Guðrún was CEO of Nasdaq CSD Iceland (Nasdaq Central
Securities Depository Iceland). In 2012 and 2013 she was a Board Member of The Enterprise Investment Fund slhf., Reginn
hf., Míla ehf., Vörður Insurance Company and Vörður Life Insurance. Previously from 2002 to 2012 Guðrún was CEO of Arion
Custody Services, a leading provider in the Icelandic market of fund services, clearing, settlement, local and global custody
services to domestic and foreign financial institution. Prior to this Guðrún held various positions at Kaupthing hf. from 1984
to 2002 such as Executive Director, Corporate Director of Human Resources, Director of Marketing and Director in Asset
Management. Guðrún holds a Cand. Oecon degree from the University of Iceland. She is an independent Board member and
does neither own shares nor share options in the Company. Guðrún has been a member of the Board of Directors since 6
September 2018 and is a member of the Remuneration Committee. Apart from being a Board Member of Landsbankinn hf.
she has no interest links with the Company’s main clients, competitors or major shareholders.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
51
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Lárus L. Blöndal
Ólöf Hildur Pálsdóttir
Baldvin Thorsteinsson, Alternate Member of the Board
Jóhanna á Bergi, Alternate Member of the Board
Corporate Governance Statement
Lárus was born in 1961 and lives in Iceland. He is a Supreme Court Attorney and a Partner at Juris Law Offices. Lárus was a
Partner at Almenna lögfrædistofan from 1990 to 2008. Lárus is currently a board member of Orkusalan hf. and the Chairman
of the board of ISFI (Icelandic State Financial Investments). He has been a member of the Competition Appeals Committee
since 2000 and its Vice-Chairman since 2009 and a member of the National Olympics and Sport Association’s executive
committee since 2001, becoming its Vice-President in 2006 and its President in 2013. He has previously been a board
member of the Icelandic Bar Association, the University of Iceland’s Human Rights Institute, the University of Iceland’s
Research Centre in Environmental and Natural Resources law, Hótel Borg ehf., Fastus ehf., the Housing Financing Fund,
Chairman of the National Olympic and Sport Association’s legal committee, and a member of various other official
committees and boards. Lárus has been a Supreme Court Attorney since 1998 and a District Court Attorney since 1990. He
graduated with a Cand.jur. degree from the University of Iceland in 1987. Lárus has been on the Board of Directors since 27
March 2014 and is the Chairman of the Audit Committee and a member of the Nomination Committee. He is an independent
Board member and owns 3,051 shares in the Company but no share options. He has no interest links with the Company’s
main clients, competitors or major shareholders.
Ólöf was born in 1977 and lives in Iceland and is an independent financial advisor. She was the CFO of atNorth ehf., the
largest data center in Iceland, from 2019-2021. Prior to that she worked as an independent Financial Advisor and was a board
member of Reginn hf. and alternate board member of VÍS hf. Ólöf worked at Arion bank and its predecessors from 1997 to
2017 in various roles e.g. as Head of Credit Structuring and Analysis, Deputy Head of IR, Investment strategist and in Asset
Management as a fund manager. Ólöf was also member of the bank’s credit committees and asset and liability committee
(ALCO). Ólöf holds a Cand. Oecon degree in economics and business administration (finance) from the University of Iceland.
Ólöf Hildur owns 29,632 shares in the Company through her holding company, Skaftafell Invest ehf., but no share options.
Ólöf Hildur has been a member of the Board since 25 March 2021 and is currently a member of the Audit Committee. She has
no interest links with the Company’s main clients, competitors, or major shareholders.
Jóhanna was born in 1970 and lives in the Faroe Islands. Jóhanna is the CEO of Atlantic Airways Ltd. and has been since 2015.
Jóhanna was the CEO of P/f Faroe Ship, Eimskip’s subsidiary in the Faroe Islands, from 2006 to 2015, Sales Director of JFK
and Kósin Seafood from 1998 to 2006 and Sales Manager of Faroe Seafood France from 1994 to 1998. She is currently a
board member of the Faroese Confederation of Sports and Olympic Committees, Nordoyatunnilin, Föroya Grunnurin, House
of Industry and Visit Faroe Islands. Jóhanna has a master’s degree in Management from Robert Gordon University in the UK.
She further holds an EE degree from the Danish School of International Marketing and Export. Jóhanna has been an alternate
member of the Board since 3 April 2013, is an independent Board member and does neither own shares nor share options in
the Company. She has no interest links with the Company’s main clients, competitors or major shareholders.
Baldvin was born in 1983 and lives in the Netherlands. Baldvin is the CEO of Alda Seafood Holding. Baldvin was the Chairman
of the Board of Eimskipafélag Íslands hf. from 2018 to 2022. Previously he was the CEO of Iceland Drilling hf. from 2013 to
2016. He is currently a chairman of the board of Olíuverzlun Íslands hf., a board member of Iceland Drilling hf., and a board
member of the Canadian fishing company Newfound Resources Limited Ltd. and the Norwegian fishing company Nergard
A/S. He earned a BS degree in Industrial Engineering from the University of Iceland in 2007. Baldvin has been an alternate
member of the Board since 17 March 2022 and is currently a member of the Remuneration Committee. Baldvin owns 232,076
shares in the Company but does not have a share options agreement. He is not independent of Seley ehf., which holds 56.7
million shares in the Company at the year-end of 2022.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
52
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The Chief Executive Officer and the Executive Management
Vilhelm Már Thorsteinsson, Chief Executive Officer
Diversity
Internal Control and Risk Management
The Company issued a policy on diversity in connection with the Board of Directors, Executive Management and Senior
Management on 27 January 2022. The policy can be found on the Company’s website, www.eimskip.com
Further information on the Executive Management is on the Company’s website, https://www.eimskip.com/about-eimskip/key-
executives/.
Risk management is the process of analyzing and assessing the risk factors which could prevent the Company from achieving its
set goals. It also includes that remedial action is taken to minimize the anticipated effects of such risk factors.
Eimskip’s internal control and risk management procedures regarding financial processes is designed to minimize the risk of
material misstatements. The Company does not have an internal audit function, but it uses internal control systems that are
monitored by the Audit Committee.
The role of internal control is to facilitate the management of an operation and it has been defined as a process which is shaped
by a company’s Board of Directors, the management team, and other employees. The purpose of internal control is to build
foundation for the company to reach success and efficiency in its operations, reliability of financial information and consistency
with laws and regulations.
The Executive Management of Eimskip consists of the Chief Executive Officer, Chief Financial Officer, Chief Operating Officer,
Chief Information Officer and the Executive Vice Presidents of International Operations, Human Resources and Communication,
Iceland Sales and Business Management, Iceland Domestic Operations and the General Counsel.
María Björk Einarsdóttir is the Chief Financial Officer, Hilmar Pétur Valgardsson is the Chief Operating Officer, Hilmar Karlsson is
the Chief Information Officer, Bragi Thór Marinósson is the Executive Vice President of International Operations, Edda Rut
Björnsdóttir is the Executive Vice President of Human Resources and Communication, Björn Einarsson is the Executive Vice
President of Sales and Business Management, Böðvar Örn Kristinsson is the Executive Vice President of Iceland Domestic
Operations and Davíd Ingi Jónsson is the General Counsel.
The Company’s CEO is responsible for the day-to-day operations, in accordance with law, regulations and the Company’s Articles
of Association and follows the policies and instructions laid down by the Board. The CEO must at all times conduct his work with
integrity and take account of the Company’s interests. Day-to-day operations do not include matters which are unusual or of
great significance. The CEO shall make sure that the Company’s accounts are kept in accordance with law and practice and that
the Company’s assets are kept in a secure manner. The CEO is obligated to abide by all instructions of the Board of Directors and
shall give the auditor any information requested. The CEO does not have the authority to make decisions concerning any matters
that are assigned to others by law or are reserved to the Board under its Rules of Procedure. The CEO shall ensure that Directors
of the Board are regularly provided with accurate information on the Company’s finances, development and operations to enable
them to perform their duties and the information shall be in the form and of the quality determined by the Board. The
information shall be available when needed and as up-to-date and accurate as possible. The CEO is to acquaint the Board with all
major issues involving the operations of the Company or its subsidiaries and is to attend the Board meetings. He participates in
the Boards of the subsidiaries within the group.
Vilhelm was born in 1971. He was appointed CEO in January 2019. Prior to his current role at Eimskip, he held various positions
at Íslandsbanki for 20 years, most recently as Managing Director of Corporate & Investment Banking (2017-2019) and
Managing Director of Corporate Banking (2008-2017). Vilhelm furthermore has a background in both treasury and capital
markets activities. He is a Board Member of the Chamber of Commerce in Iceland and a Board Member of various subsidiaries
of Eimskipafélag Íslands hf.
Vilhelm earned an MBA Degree from Pace University in New York; a B.Sc. degree in Business Administration, Majoring in
Logistics, from Reykjavík University; and is a licensed Securities broker.
Corporate Governance Statement
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
53
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Information on violation of rules determined by the applicable authority
Sustainability
Code of Conduct
The Company’s risk exposure is discussed at Board meetings and its risk management and risk factors are discussed in the
Annual Report.
Eimskip is a registered participant of the UN Global Compact, the United Nation’s initiative for social responsibility with respect to
human rights, labor, environment, and anti-corruption. With its participation, the Company has committed to managing its
business operations so that the UN Global Compact and its Ten Principles become a part of the Company’s strategy, culture, and
day-to-day operations.
Eimskip’s Sustainability Policy is based on the Nasdaq ESG Reporting Guide, published in March 2017. The Nasdaq voluntary
reporting guide focuses on 30 environmental, social and governance (ESG) performance indicators. Further information on
Sustainability at Eimskip can be found in the Non-Financial information in the annual financial statement and on the Company’s
website, https://www.eimskip.com/about-eimskip/sustainability.
The Board of Directors regularly communicates with the CEO regarding the identification of, description of and response to
business risks which the Company may be faced with. Risk management within Eimskip is governed by the Board of Directors,
while the Audit Committee is responsible for its review on a regular basis. The Executive Management is responsible for
identifying material risks and developing the Company’s risk management strategy.
Eimskip monitors its financial risk factors and the Board of Directors has approved a Treasury policy which, among other, sets
acceptable risk limits and stipulates how to identify, measure and manage financial risk exposure. The Company has in place a
financial reporting and internal control manual to which the group reporting entities must adhere.
Corporate Governance Statement
Please find information on main legal cases that relate to Eimskip under other matters in the notes to the annual financial
statement.
An independent auditing firm is elected at the Annual General Meeting each year. The auditors are to review the Company’s
accounting records and material related to the Company’s operations and financial position and they are always to have access to
the Company’s books and documents. They must examine the Company’s Consolidated Financial Statements in accordance with
International Standards on Auditing. Significant findings regarding accounting and internal control deficiencies are reported to the
Board of Directors through the Audit Committee. Independent auditors are not allowed to own shares in the Company.
The Company goes through a detailed strategic and budgeting process each year and a strategy and budget report are prepared.
The Board of Directors approves the Company’s strategy and budget each year. Deviations from the strategy and budget are
carefully monitored on a monthly basis.
Active risk management plays an important role in Eimskip to ensure stable operations and earnings. The risk management
program is aimed at minimizing potential negative effects on operations and earnings from marketing, operational and financial
activities and to keep risks at acceptable levels.
The Board of Directors approved a revision of the Company’s Code of Conduct in February 2023. The Code of Conduct closely links
to the Company’s values: Achievement, Cooperation and Trust. The Code is also based on Eimskip’s aim to secure good return for
shareholders with profitable growth, create value for customers with outstanding solutions and services, be an outstanding
workplace for employees with great team spirit and ambition and show concern for society with social responsibility and reduced
ecological footprint.
The purpose of this Code of Conduct is to support Eimskip’s mission and vision. It applies to the Board of Directors and all
employees of Eimskip and its subsidiaries and guides them in conducting the Company’s daily activities in an honest, responsible,
and ethical way, based on its values, and generally accepted professional standards of conduct. Suppliers and subcontractors are
also required to conform to high standards. The Code of Conduct is accessible on the Company’s website, www.eimskip.com.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
54
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About Eimskip
Sustainability
Sustainability Policy
Environment
Society
Governance
Sustainability Structure
Example of projects:
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Eimskip was founded in 1914 and is a publicly traded company with its shares listed at Nasdaq Iceland. Eimskip runs a network of
56 offices in 20 countries on four continents, operates 17 vessels, and has around 1,700 employees.
Eimskip respects its environment and seeks to limit its impact on the ecosystem and reduce its environmental footprint.
Eimskip’s Sustainability Policy is based on the Nasdaq ESG Reporting Guide, focusing on 30 environmental, social, and
governance performance indicators. Eimskip’s ESG sustainability statement is published on the Company’s website
www.eimskip.com.
The Company announced that it has started to analyze and evaluate its options in renewing the container vessel fleet,
focusing on the next generation of vessels using alternative greener fuel.
In December, Eimskip implemented an electric shore power connection system for container vessels in Sundahöfn in
Reykjavík. Eimskip is now able to operate its largest vessels on electricity instead of oil-powered auxiliary engines during its
port time in Sundahöfn. The benefit is a reduction in emissions and improved air quality and acoustics in the area. At the
same time, the shore power connection reduces oil consumption by up to 240 tons per year, which equals 750 tCO2
emissions.
Non-Financial Reporting
Eimskipafélag Íslands hf. (Eimskip) is a leading transportation company in the North Atlantic providing container and reefer liner
services with connections to international markets and specializing in worldwide freight forwarding services focusing on frozen
and chilled commodities.
The Company has a governance structure for sustainability-related matters where the CEO is responsible for a strategic
sustainability framework. Executive Vice Presidents are responsible for specific categories within the sustainability framework,
environment (E), social (S), and governance (G), and the Sustainability Manager holds the day-to-day responsibility.
In 2020 Eimskip collaborated with the consulting company Circular Solutions (now a part of KPMG) on a risk assessment of The
Company’s ESG and established a three-year action plan. Eimskip continues to work by that action plan. The focus in 2022 was on
projects linked to the UN Sustainability Development Goals Climate action (goal 13), Good health and Well-Being (goal 3),
Responsible Consumption and Production (goal 12), and Peace, Justice and Strong Institution (goal 16).
Eimskip strives to provide its customers with the most efficient and sustainable transportation solutions combined with
outstanding services while securing a good return for its shareholders and being responsible for its employees, society, and the
environment. As a company, Eimskip aims to contribute to a better and safer society wherever it operates, and responsibility
towards the community is an integral part of the Company’s sustainability policy. The sustainability policy is reflected in
Eimskip’s global policies that apply to the Eimskip group.
Eimskip has for over a century offered reliable transportation services, and the Company’s vision is to reach excellence in
transportation solutions and services. Eimskip focuses on creating shared value for its shareholders, customers, employees,
society, and other stakeholders.
Eimskip offers employees equal opportunities in a safe and healthy working environment and endeavors to be a good
corporate citizen, recognizing its responsibility to work in partnership with the communities in which it operates.
Eimskip strives to ensure an open and transparent relationship between the Company’s management, its Board of Directors,
its shareholders, and other stakeholders.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
55
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Environment
In 1991, Eimskip became one of the first companies in Iceland to establish an environmental policy as the main driver for an
improved ecological footprint.
The Company has signed LOI with Landsvirkjun concerning Eimskip’s energy transition for its shipping- and ground transport
fleet. The Companies will jointly analyze market conditions and technology development regarding the usage of hydrogen or
e-fuel instead of fossil fuels in transportation, resulting in significantly reduced greenhouse gas emissions. Based on these
analyses, the Companies will discuss potential future procurement and sales of hydrogen or e-fuel produced by Landsvirkjun
or its partners.
The Company invested in 2 methane trucks and 2 electric trucks in Iceland that will be delivered in 2023.
Eimskip is supporting Running Tide, a global ocean health company building technology to amplify and scale the natural
restorative benefits of the ocean. Running Tide is capturing carbon and fighting ocean acidification by creating and sinking
buoys made e,g, of carbon-grabbing macroalgae, such as kelp. Running Tide and Eimskip cooperate, whereas Running Tide
utilizes Eimskip´s land at Grundartangi in return for carbon credits. Eimskip also supports Running Tide by transporting
ocean observation platforms into the Atlantic Ocean.
Employees participated in the internal project “Look up and around,” where they looked for green improvement
opportunities in their work environment.
Health and wellness package was introduced for employees in Iceland.
The Company established a new international leadership program to develop leaders within Eimskip and ensure that the
Company always has ready successors for leadership roles. Focus was on diversity and ensuring gender balance.
The Code of Conduct guides the Board of Directors as well as all employees in conducting daily activities in an honest,
responsible, and ethical way. From spring of 2022 all employees are asked to confirm that they have read and understood
the Company’s Code of Conduct.
Supplier Code of Conduct and supplier self-assessment was sent to larger vendors in Iceland. The goal is to reach the largest
suppliers globally with 80% of the spend in 2023.
Eimskip’s sustainability status was evaluated by Reitun, a Credit Rating Agency in Iceland. The total score is 73 points or B2
which is above average for their database.
Eimskip monitors changes in legislation, that could affect the Company, regularly and has considered legislation changes in
its risk management.
Non-Financial Reporting
For Iceland, which bases a large part of its economic foundation on harvesting natural resources from the ocean in a sustainable
way, the changes associated with global warming and pollution of the ocean leave all the critical components of its modern
economy utterly exposed, in addition to threatening the quality of life for future generations. To support global and local
environmental initiatives, Eimskip signed the Reykjavík Declaration on Climate Issues in November 2015. The agreement includes
reducing greenhouse gas emissions, reducing waste, monitoring the measured results, and regularly publicizing the information.
Climate change is one of the main ESG risks in the Company´s operation. The Company respects the environment and recognizes
the effects of climate change on society, its business activities, and the need for a low-carbon economy. Minimizing the
environmental impact of the Company’s operations is crucial. The focus is on achieving complete clarity regarding emissions and
waste from each of the emitting sources in the supply chain. Development in data and analytics gives Eimskip a better overview
of its ecological footprint and reduction opportunities.
The Company manages and monitors the environmental impact of the operation. The Company uses an Environmental
Management System linked to all significant assets in the supply chain, streaming reliable and transparent information on its
environmental matters into the system. Digitization of emission and waste-registration data from the supply chain enables
continuous measurements and provides reliable and transparent communication. The data is regularly reviewed and evaluated.
The environmental statement is published quarterly and is presented to the executive team for review and discussion.
In the environmental statement for 2022, the Company has registered scopes 1&2 for all vessels and offices in Iceland. From 2022
all countries except three are sharing environmental data for scope 1&2. It is expected that the remaining countries will start to
contribute in Q1 2023.
The Company´s energy mix is 96% fossil fuel, with most of the emission coming from the vessels. Development in the vessel
fleet is needed to reach the goal of a 40% reduction in emissions before the year 2030.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
56
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Emission
Social
Employees
Eimskip is developing a new facility in the Netherlands where the office, warehouse and trucking will be operated. The building
will be equipped with solar panels on the roof as part of the energy system and other environmental improvements will be
implemented e.g. in terms of isolation and lighting.
In 2022 the Company introduced an “organic spill kit” solution to the employees in the operations. Spill kits contain 100% natural
fiber without any additives and are completely biodegradable. These spill kits are to be used to prevent spillage from having an
impact when they occur and thereby protect the ecosystem.
Eimskip’s total emissions were 303.197 tCO2e in 2022. Scope 1 is 301.250 tCO2, where the vessel fleet is responsible for most
emissions. Eimskip has been extending the scope of data by involving all international offices in the environmental report. In
2022 17 of 20 countries are providing data. This significantly affects scope 2, where the emission is 1,567 tCO2. Scope 3 is partly
mapped and is 379 tCO2 in 2022.
The Company aims to reduce emissions by 40% before 2030. Eimskip´s official emission KPI was set in 2015 and is used to
measure the emission development per transported ton. The KPI was redefined based on additional data collected over time. The
goal was to maintain a reliable and valid comparison between 2015 and now. The KPI represents all Scope 1 emissions of vessels
in Iceland, Norway, and the Faroe Islands and trucks/equipment in Iceland per tonne of a transported unit. The KPI is adjusted to
a vessel-sharing agreement with Royal Arctic Line (RAL) regarding transportation to and from Greenland.
By the end of 2022, the accumulated reduction of Eimskip´s carbon footprint per ton of transported unit is 23,5% compared to
the base year 2015. The main reason for the lower emissions factor in 2022 is the system’s increased volume and efficiency due to
the new vessels Brúarfoss and Dettifoss.
The Company’s values of achievement, cooperation, and trust serve as guiding principles for The Company’s actions and decisions
and shape the Company’s culture and reputation, both internally and externally.
Employee rights and welfare policies are part of Eimskip’s commitment to respecting the dignity and rights of all employees. The
Company’s principal policies are the Code of Conduct, Human Resource Policy, Salary Policy, Equal Opportunities Policy, Policy
against Bullying and Harassment, Health Policy, Occupational Safety, and Security and Prevention Policy. The Company’s principal
policies apply to all employees of Eimskip and its subsidiaries.
Eimskip recognizes its responsibility to work in partnership with the communities it operates in. This partnership is connected to
all stakeholders from employees, customers, and society, with the Company’s values of achievement, cooperation, and trust
always in mind.
The Company employs around 1.700 people across four continents and 20 countries. Eimskip´s employee group consists of diverse
individuals from different backgrounds, experiences, and perspectives. These employees bring a wide range of talents, ideas, and
views to the table, which inspires creativity and innovation within the Company. They bring energy and a positive attitude to the
workplace, which fosters a dynamic work culture characterized by collaboration, communication, and ambition.
In addition, the Company has been investing in more environmentally friendly equipment like electric and methane trucks for
inland transportation, but Eimskip has a wide net of trucking services in Iceland and Faroe Islands.
Eimskip looks to the future and recognizes the need for greener investments to lower emissions. The Company announced that it
has started to analyze and evaluate its options in renewing the container vessel fleet with focus on next generation of vessels
using alternative greener fuel.
There is a high focus within the Company on future energy possibilities. Several important steps have been taken to reduce GHG
emission. In December electric shore connection for vessels in Sundahöfn was activated when Dettifoss was connected to
electricity when in Sundahöfn. Eimskip can now operate its largest vessels on electricity instead of oil-powered auxiliary engines
when in Sundahöfn. These changes strengthen Eimskip's journey to reduce the emission of greenhouse gases in its operations,
but all harbor cranes that the Company operates in Sundahöfn are already powered by electricity.
Non-Financial Reporting
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
57
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Safety
A safe and healthy work environment is one of Eimskip’s top priorities. The objective is that everyone can work safely at Eimskip.
To achieve this objective, the Company emphasizes prevention and training. Employees undergo routine safety training, and
continuous advancements to create a safe work environment.
The safety suggestion button was introduced. Employees, contractors and others can send in information regarding near misses
and dangerous situations. The Safety and Security Department then processes this information and acts on this suggestion to
prevent accidents, and damages with the goal in mind to improve overall safety in the operations.
Eimskip actively seeks to ensure that women have a voice at all levels in the Company to ensure dynamic conversations and broad
perspectives. A powerful tool in driving diversity and gender equality in Eimskip's Executive management team is its Succession
Planning process. Furthermore, the Company aspires to develop a diverse group of prospective leaders through the Company´s
International Leadership Program. The program aims to encourage and facilitate individual growth so that they can excel in their
leadership roles and take on new responsibilities. A total of 75 employees from 14 countries graduated from the program in 2022,
with 53% of the participants being women. The training has resulted in better communication and cooperation across teams and
countries, and increased motivation, and satisfaction among the participants. A year after the project began, nine participants,
including five women, have been promoted to new roles and have taken on new responsibilities.
The Company hosted workplace bullying, harassment, and discrimination training for all employees. The training covered topics
such as identifying different types of harmful behavior, understanding the impact of such behavior, and developing strategies to
address and prevent it. The benefits of the training are a greater understanding of how to create a safe and respectful work
environment and improved relationships among colleagues. Furthermore, it promotes a positive and inclusive culture at the
company.
Non-Financial Reporting
The Company updated the Information security policy, the Company is fully aware of the potential global cyber security risk.
Several processes were reevaluated e.g., suppliers of high importance for IT security, now receive self-assessments.
Eimskip has a First Response Team, whose duty is to respond to various incidents on sea and land. The team’s purpose is to
ensure and assist on proper first response and limit accidents to people and damages to properties, cargo, and the environment.
Also, it is the team’s responsibility to respond to cyber incidents.
The Company’s Loss Prevention Team meets regularly to investigate losses, damages, and accidents and follows up on necessary
changes, training and improvements.
As a part of its efforts to support non-sexist male perspectives and behaviors between men, Eimskip recently hosted
“Barbershop” events with a diverse group of male leaders and employees. As part of the Barbershop concept, men are motivated
by innovative ways to address discriminatory male stereotypes and provided with ways of discussing gender equality comfortably
and in a safe environment.
Eimskip continues to put significant efforts into securing the health and safety of employees by implementing various safety
precautions and focusing on employee well-being and work-life balance. This was done through training and workshops.
Eimskip emphasizes fostering employee satisfaction and a culture of engagement, productivity, and motivation. And the
Company continuously looks for new ways to build a positive and inclusive work environment.
The employee engagement survey measures employee satisfaction, one of Eimskip´s most important KPIs, and provides valuable
feedback about their experiences and perceptions. By better understanding employees’ needs, the Company can address topics of
importance to increase well-being, engagement, and retention, ultimately leading to better performance. Two surveys were
performed in 2022, in April (Satisfaction = 8.0) and October (Satisfaction = 8.0). In keeping with previous trends, the company
continue to score the highest in the Work environment (8.6), Equality (8.5), and Meaningful work (8.4).
In May the IMO Desk was introduced for employees in the Company’s offices worldwide. The IMO Desk is the central hub
providing information regarding proper documentation, loading, and securing of dangerous goods transported by sea in the
operations.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
58
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Human Rights
Customer
Projects for the society
Governance
Eimskip is renowned for its excellent service. The Company has a broad customer base and provides a wide range of solutions to
meet diverse requirements. A global team with local expertise provides customers with holistic services, designed specifically for
their needs.
Eimskip has a clear human rights policy that states everyone should enjoy equal rights. The policy is accessible on the Company´s
website. Eimskip is a registered participant of the UN Global Compact, the United Nation’s initiative for social responsibility for
human rights, labor, environment, and anti-corruption. With its participation, the Company has committed to managing its
business operations so that the UN Global Compact and its Ten Principles are a part of the Company’s strategy, culture, and day-
to-day operations. In 2022, the Company addressed the ten principles of the UN Global Compact with its most significant
suppliers in Iceland. In 2023, Eimskip will continue to drive this project globally.
The Company hosted workplace bullying, harassment, and discrimination training for all employees. Eimskip also hosted courses
with emphasis on anti-corruption and competition law. Human rights are also addressed in the value chain through supplier
assessment.
In 2022 the sailing schedule on eimskip.com got a new appearance with new features and more reliability. The main goal was to
simplify the schedule and make it more user-friendly for customers and employees.
Eimskip added the fourth vessel to the North American route in November to meet continued strong demand Westbound. The
fourth vessel is 700 TEUs. Before, the Company operated three vessels on the route on weekly service, two 900 TEUs and one
700 TEUs. Eimskip offers an outstanding environmentally friendly product for transporting fresh products by sea to North
America. Which in turn allows customers to lower their carbon footprint.
As a company, Eimskip wants to contribute to a better and safer society wherever it operates, and responsibility towards the
community is an integral part of the sustainability policy.
The Company supports various projects, charities, sports activities, culture, innovation and finally, projects centered on preventive
measures for children and young adults. The Company is incredibly proud of the bicycle helmet project, which began in 2004 in
cooperation with Kiwanis in Eimskip has given all six-year-old children in Iceland bicycle helmets and safety reflectors to
contribute to youth safety. Eimskip has given helmets to about 78,600 children.
Eimskip strives to ensure open and transparent relationship between the Company´s management, its Board of Directors, its
shareholders, and other stakeholders.
The Company has a Global Service Policy. The goal of the Global Service Policy is to align the service approach, goal setting, and
measurements between different units within Eimskip to ensure that the Company is offering excellent customer service. The
Global Service Policy contains three pillars: Global Team, Proactive, and Simplify. To measure and monitor customer satisfaction
for customers globally, Eimskip sends out a Net Promoter Score (NPS) customer survey each year. The NPS continues to be
strong. In Gallup research in Iceland, the positivity towards the brand is increasing from 2021.
Non-Financial Reporting
The digitalization and automation of processes are key elements in the continued development of Eimskip’s services. The
Company is determined to adapt to customers’ needs in a fast-changing technical environment where elements of self-service
are increasingly important. A strong focus on information technology, and potential synergies between systems and teams, is
playing a vital role in Eimskip’s proactive commitment to service excellence.
Eimskip continues to strategically invest in technology platforms to better support customer service. This includes Microsoft
Customer Engagement solution, new systems for liner and forwarding operation, container management system, global financial
reporting and planning platform and more.
Eimskip Denmark has for the last 6 years cooperated with the Youth Center, a part of the job center in Aarhus municipality by
offering internships to young people who have been on the edge of the labor market. The target group is made up of activity-
ready young people that are furthest away from the labor market. The interns have their own mentors in the warehouse and
follow an individual career plan. With the partnership with Aarhus municipality, Eimskip supports the important personal
development of these young people in this untraditional program.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
59
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Anti-corruption and bribery
Supplier code of cunduct
Data privacy
See further information in ESG statement 2022, www.eimskip.com.
Eimskip’s policy is to fight against corruption and bribery. The Company’s management and its employees strive to always comply
with applicable laws and regulations and with rules and general standards of business ethics and corporate governance to avoid
conflict of interests and maintain confidentiality. The Company’s internal control and risk management are intended to spot
abnormalities, including the risk of corruption and bribery. Eimskip’s policy on Anti-corruption and bribery can be found in the
Company’s Code of Conduct which can be found on www.eimskip.com.
Global training was conducted in 2022 with employees that have direct contact with customers and suppliers. The focus was on
Governance issues and policies e.g., anti-corruption and competition laws.
Good partnership with suppliers is beneficial and risk management of the supply chain is highly important. The Company
published a Supplier Code of Conduct and Procurement Policy in 2021. In 2022 the Supplier Code of Conduct was introduced to
vendors and in May top Icelandic Suppliers with 80% turnover signed the Supplier Code of Conduct. Furthermore, a suppliers
assessment tool based on ESG has been implemented and this tool can be used at a global level. A questionnaire has been sent
to the largest supplier of Eimskip Iceland. The project will continue in the year 2023 to assess suppliers across the Company
globally.
Eimskip is committed to processing personal data of customers, employees, business partners, and other stakeholders in a
lawful, fair and secure way. Eimskip strives to comply with applicable data protection laws, and all personal data used in business
operation must be handled following global privacy and internal policies. The Company has identified suppliers that process data
on behalf of Eimskip and the first group of suppliers have been sent self-assessments This journey will be continued in 2023.
Eimskip has in place a global Whistleblower procedure for handling reports of alleged misconduct concerning the Company’s
operations and the protection of whistleblowers. Furthermore, Eimskip’s Anti-Money Laundering & Sanction Policy prohibits
anyone employed by Eimskip from participating in money laundering, terrorist financing, and sanction breaches.
Non-Financial Reporting
Action was taken to send the Code of Conduct to employees with the aim of introducing the Code of Conduct more formally and
seeking confirmation from employees that they understood it. The process is ongoing but 50% of employees have signed the
Code of Conduct in 2022.
Consolidated Financial Statements of Eimskipafélag Íslands hf. 2022
60