Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Investor Day (September 2017)
66 slides from Wallenius Wilhelmsen Asa's investor day presentation, September 2017
Slide 1: WWL ASA Capital Markets Day
WWL ASA Capital Markets Day September 2017
Slide 2: Agenda
Agenda Words from the CEO – group strategic priorities Landbased strategy Environmental strategy and focus areas H&H: “A break bulk deep dive” 2
Slide 3: Words from the CEO: Group strategic priorities
Words from the CEO Group strategic priorities President and CEO – Craig Jasienski
Slide 4: Backdrop: Improving market fundamentals
Backdrop: Improving market fundamentals A B C MARKET Auto – steady growth H&H – turning point Market balance – firmer TREND Investment Total light vehicle sales in the first quarter increased by 4% y-o-y Positive outlook for all main High & Heavy segments Moderate net fleet growth forecasted going f
Slide 5: Backdrop: WWL ASA needs to embrace new trends
Backdrop: WWL ASA needs to embrace new trends… Electrification Autonomy Flexible manufacturing Mobility models New entrants
Slide 6: Take necessary actions to position ourselves for future success
… and take necessary actions to position ourselves for future success OCEAN TRANSPORTATION LANDBASED SERVICES Be agile and adaptable Position ourselves for growth opportunities 6
Slide 7: New strategic direction defined for WWL ASA
New strategic direction defined for WWL ASA Solidify position as the market leader in RoRo with unrivaled H&H and Breakbulk capabilities Better Substantially increase earnings for landbased by expanding the core and transforming to full life cycle logistics Strive for lowest cost possible by utilizi
Slide 8: Cost efficiency through relentless focus across five main areas
Cost efficiency through relentless focus across five main areas Cost efficiency 8
Slide 9: Q&A
Q&A 9
Slide 10: Landbased strategy
Landbased strategy COO WWL Landbased – Raymond Fitzgerald
Slide 11: Agenda
Agenda WWL ASA Landbased at a glance Ambition and strategy 11
Slide 12: WWL ASA Landbased at a glance
WWL ASA LANDBASED AT A GLANCE 12
Slide 13: More than 13.5 million units handled annually in Landbased network
More than 13.5 million units handled annually in WWL’s Landbased network, across all products KEY FACTS & FIGURES OUR PRODUCTS & SERVICES 70 sites 2 ~70 operational sites globally, MARINE TERMINAL across six continents SERVICES 3 PLANT -BASED PORT-BASED >13.5M TECHNICAL SERVICES TECHNICAL SERVICES 4
Slide 14: Landbased Services portfolio and main customers
Landbased Services portfolio enabling customers to reduce costs and increase efficiencies in their outbound logistics Landbased Services Portfolio Main Customers Marine Terminals Technical Services Inland Distribution & Logistics Auto Stevedoring Accessory fitting Trucking Main customers include Cus
Slide 15: A global network of Landbased Services well positioned for future growth
A global network of Landbased Services well positioned for future growth In-plant vehicle processing centres In-plant equipment processing centres Terminals Vehicle processing centres Equipment processing centres Inland distribution networks 15
Slide 16: The last 10+ years has been an exciting journey
The last 10+ years has been an exiting journey Early 1990s 2005 2009 2010/11 2016 Southampton and DAS acquired Castor Green EPC ‘s in Panama, VSA and CAT-WWL 100% Port Huemne from Nissan Terminal – our zero Galveston and takeover Landbased North America emission vision for Dubai business reaches USD
Slide 17: The strong land based performance continues
The strong land based performance continues… Financial performance: Revenue and EBITDA USD million Revenue EBITDA-margin USD million % 700 15 627 581 598 600 533 500 12% 10% 10 400 10% 10% 300 5 200 100 0 0 2013 2014 2015 2016 17
Slide 18: Profitability varies between the different services
Profitability varies between the different services Terminal services Technical services Inland Distribution Revenues EBITDA Revenues EBITDA Revenues EBITDA USD M % USD M % USD M % Acquisition of 500 20 500 VSA 20 500 20 403 400 400 400 15 15 15 Sale of VSE 300 300 257 258 300 MIRRAT ramp up cost 10
Slide 19: Ambition and strategy
Ambition and strategy ‘WALLENIUS WILHELMSEN LOGISTICS ASA
Slide 20: Landbased ambition: grow earnings by expanding the core
“WWL ASA Landbased ambition is to significantly grow earnings by expanding the core and transforming to full life cycle logistics” 20
Slide 21: Landbased ambition: four strategic pillars
WWL ASA Landbased ambition is to significantly grow earnings by expanding the core and transforming to full life cycle logistics A B C D PROTECT THE CORE NETWORK EXPANSION TRANSFORMATION INTELLIGENT LOGISTICS AND M&A “Protect and grow “Develop and expand “Adapt to and exploit “Develop and deploy exi
Slide 22: Protecting the core
A Protecting the core is key to maintain competitiveness and position ourselves for growth Contract Share conquest from New BD from New BD from non- Procurement Renewals competition traditional customers traditional customers Services Critical to lock in customers in order to Look to leverage brand
Slide 23: Network expansion and M&A
B Network expansion and M&A will be ramped up to meet aggressive growth targets Marine terminal E-Service inland Acquisitions & Organic growth TS New verticals expansion terminals Partnerships Expand offerings and Look for acquisition and Identify entirely new areas Expand footprint globally Expand
Slide 24: Transform service offering to end of life cycle logistics
C WWL Landbased will transform its service offering from factory to end of life cycle logistics for vehicles and heavy equipment Diverse Mobility Fleet Management Autonomous Vehicles Electrification After-sales services Capitalize on evolution of Share of ride- and car- New entrant technology- Large
Slide 25: Move into intelligent logistics will enable transformation
D Move into intelligent logistics will enable transformation Network Dynamic routing, Digitalization GEO fencing Visibility optimization telematics and AI Allow for visibility Digital as a differentiator Closely monitor machine Prerequisite for accuracy throughout supply chain Advanced analytics and
Slide 26: Q&A
Q&A 26
Slide 27: Environmental strategy and focus areas
Environmental strategy and focus areas VP, Head of Corp Com and CSR – Anna Larson
Slide 28: Content
Content Regulatory outlook and trends Environmental strategy Environmental focus areas 28
Slide 29: Regulatory pipeline and environmental trends
Regulatory pipeline and environmental trends - EU mandatory CO2 reporting in 2018 Regulatory Pipeline - IMO mandatory CO2 reporting in 2019 - Global sulphur cap change in 2020 - Ballast water management systems by 2024 - Shore power requirements in California - Investor demand for environmental tran
Slide 30: WWL believes in taking a sustainable approach
WWL believes in taking a sustainable approach Investor & customer preference Efficiency focus New revenue opportunities Driver of Innovation Future proofing Attract best People
Slide 31: Environmental Strategy: Lean:Green
Environmental Strategy: Lean:Green Vision - Sustainability will be a driver of our business development and growth - Our logistics services can be provided with zero emissions by 2050 Strategy - Striving for what is both economic and sustainable will produce the best long- term results for people, p
Slide 32: Global Sulphur Cap 2020 in brief
Global Sulphur Cap 2020 in brief Why: Sulphur emissions harmful to health and environment What: Sulphur (S) content reduction , 3.5% 0.5% When: Effective from Jan 1st 2020 Who: All vessels, all the time and everywhere Additional local regulations Existing ECA (0.1%S) WWL main service ports Except…
Slide 33: 4 stream approach for compliance
4 Stream Approach for compliance - Major considerations: - Proactive initiative to find the right solutions for our specific fleet needs - Leveraged partnerships and experience from years of low S operation Pre 2020 Distillate Fuels (MGO) Is it technically How will it be What will it cost in Will av
Slide 34: Sulphur 2020: full organisational focus
Sulphur 2020: full organisational focus Global Sulphur Cap 2020 Work stream Technical Operational Commercial Regulatory Objective Minimize risk & cost Cost recovery Level playing field • Technical impacts of fuels • Fuel cost scenario analysis • Customer Communications • Trident Alliance Focus areas
Slide 35: CO2 and shipping: context
CO 2 & Shipping: context Background - If shipping were a nation it would rank 7th in global CO2 emissions - Power and range demands, mean no substitutes for fossil fuel … yet - Design efficiency standards, 1st transport segment with global Regulation requirements - Mandatory CO2 reporting schemes fr
Slide 36: CO2 progress metrics and targets
CO2– progress metrics & targets - Most of all, market fluctuations drive short term CO2 results Considerations - Short term CO2 targets does not make sense Important - Annual CO2 emission caps require fossil fuel alternatives - Cargo will still move; no environmental win - Target longer term fleet c
Slide 37: Tackling CO2: short to medium term approach
Tackling CO2 - Short to medium term approach Continuous Each Voyage Periodic Once-Off Project Examples Condition Monitoring Weather Routing Bio-fouling measures Bulbous bow refit Fleet renewal Ensures optimal machinery Continuous computation of the In-water hull cleaning or Efficiency gain if normal
Slide 38: Tackling CO2: longer term approach
Tackling CO2 – Longer term approach - Form partnerships to collaborate in evaluation and testing of more sustainable solutions - LNG viability project with Shell - Monitor technical advances that could help achieve vision of zero emissions logistics - Hydrogen as a fuel? - Cast a wide net for innova
Slide 39: Ballast water management
Ballast water management - Ballast water for stability, manoeuvrability, trim and reducing hull stress - Ballast water must be treated to mitigate invasive species transfer risk - All vessels will have ballast treatment systems installed by 2024 - Installation will occur as per pre-existing dry dock
Slide 40: Q&A
Q&A 40
Slide 41: High and Heavy: A Breakbulk deep dive
High and Heavy: A Breakbulk deep dive COO WWL Ocean – Michael Hynekamp VP, Head of breakbulk and Marketing - Kibo Bodogaard 41
Slide 42: Agenda
Agenda The High and Heavy segments Equipment and capabilities The market and our position 42
Slide 43: The High and Heavy segments
The High and Heavy segments 43
Slide 44: The High and Heavy segment is more than mining, construction and agricultural equipment
The High and Heavy segment is more than mining, construction and agricultural equipment… Mining, construction and Buses and trucks Breakbulk agricultural equipment ~7% ~68 % ~25 % 44 Note: 2016 sub-segments share of HH revenues
Slide 45: Breakbulk is really big cargo
Breakbulk is really big cargo… 45
Slide 46: It's really wide cargo
It’s really wide cargo... 46
Slide 47: It's really long cargo
It’s really long cargo… 47
Slide 48: It's really complex cargo
It’s really complex cargo… 48
Slide 49: And it's really heavy cargo
And it’s really heavy cargo 49
Slide 50: We even transported the glass for Apple's new building
We even transported the glass for Apple’s new building 50
Slide 51: Much more than cars and traditional high and heavy cargo
So that when the vessel loaded it is much more than cars and the traditional high and heavy cargo 51
Slide 52: We categorize Breakbulk into main segments
In WWL ASA we categorize Break bulk into 6 main segments Machinery and machine tools Oil and gas Rail Aviation Boats and yachts Power equipment 52
Slide 53: Equipment and capabilities
Equipment and capabilities 53
Slide 54: We have the equipment and vessels needed
We have the equipment and vessels needed With the world’s most breakbulk-capable RoRo fleet and specialized equipment, even experienced logisticians may be surprised by the cargo we can carry. 1 2 3 Up to Up to Up to 6,1 12 400 metres high metres wide tonnes in weight 54
Slide 55: WWL Cargo Equipment: a full spectrum of options for heavy cargo
WWL Cargo Equipment – a full spectrum of options for heavy cargo Roll Trailers (‘Mafis’) Samson Trailer (6-24m, 20-80ft) (8-16m, 26-52ft) Jack-Up Trailer combined with Blocks & Beams Multi Purpose Bogies 140 220 400 Max. Cargo Weight (tonnes) 55
Slide 56: Roll trailers
Roll trailers • The workhorse of our Cargo weight equipment fleet, roll trailers < 140 t have been developed for Cargo length cargo up to 140 tonnes. < 28 m • Roll trailers are simply Equipment towed on and off the vessel. length WWL also offers a wide 20’-80’ feet range of specialised low (6-24 m)
Slide 57: Multi-Purpose Bogie (MPB)
Multi-Purpose Bogie (MPB) • MPBs are especially suitable Cargo weight for long, narrow cargo up to < 140 t per set 140 tonnes and are typically Cargo length used in pairs. 6-40 m • Depending on the cargo, Equipment they can be fitted with rails length or connected together to 3 m/platform create a l
Slide 58: Samson heavy lift trailer
Samson heavy lift trailer • An original WWL design Cargo weight ideal for breakbulk up to < 220 t 220 tonnes. Cargo length 6-18 m • They are available in 8, 12 and 16 m variations, Equipment ensuring there’s always a length perfect fit for your needs. 8-16 m Equipment width • Typical cargo types: 3m
Slide 59: Jack-up trailer with blocks and beams
Jack-up trailer with blocks and beams • Jack-up trailers are used to Cargo weight handle RoRo < 400 t • Cargo of up to 400 tonnes Cargo length and are configured to suit < 50 m the cargo being shipped. Equipment height • The unit is stowed on blocks Approx. 1.55 m and beams during terminal storage a
Slide 60: Great history in delivering exceptional cargo quality
WWL has a great history in delivering exceptional cargo quality and ultimately giving our customers peace of mind • WWL has always been a pioneer in vessel design and equipment development for industrial products • No other carrier has moved a larger variety of breakbulk cargo to more locations for
Slide 61: The market and our position
The market and our position 61
Slide 62: The market is big, we are looking for only a small slice
The market is big!! We are looking for only a small slice of the pie 62
Slide 63: We compete with multiple other shipping segments
We compete with multiple other shipping segments LoLo carriers Containers carriers Bulk carriers (open hatch) • Tonnage challenge • Tonnage challenge • Tonnage challenge • Several LoLo lines are struggling • Flat racks/ low box rates • Now looking beyond the • Mergers and partnerships are a • Low ra
Slide 64: Our current value proposition in the breakbulk market is strong
The WWL value proposition Our current value proposition in the breakbulk market is strong Our value proposition is built around four main pillars Value for Solid customer Reliability Quality money care 64
Slide 65: Q&A
Q&A 65
Slide 66: Thank you
Thank you 66