World Kinect Corporation · NYSE:WKC

World Kinect — World Fuel Services — Q1 2020 Earnings Presentation

19 slides from World Kinect's earnings presentation, Apr 30, 2020

  1. Slide 1: First Quarter 2020 Earnings Call

    First Quarter 2020 Earnings Call Thursday, April 30, 2020 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.

  2. Slide 2: Caution Concerning Forward Looking Statements

    Caution Concerning Forward Looking Statements Certain statements made today, including comments about World Fuel's expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that could cause World Fuel's act

  3. Slide 3: Business Overview

    Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  4. Slide 4: Business Overview

    Business Overview  We remain a valuable counterparty to the customers and suppliers we serve, working to provide any additional support required during this period of uncertainty  Our global team has continued to operate our day to day business activities, flawlessly, with nearly all of our employ

  5. Slide 5: Financial Overview

    Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  6. Slide 6: Financial Overview

    Financial Overview  Adjusted net income and EPS were $44 million and $0.67 per share, an increase of 12% and 16% respectively, year-over-year  Adjusted EBITDA for the first quarter was $95 million  We completed the acquisition of UVair in early March, complementing our business and general aviati

  7. Slide 7: Consolidated Revenue ($ in millions)

    Consolidated Revenue ($ in millions) $8,679 $8,015 Q1 2019 Q1 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  8. Slide 8: Volume by Segment

    Volume by Segment 1,971 1,845 5.2 4.9 1,346 1,381 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Aviation Marine Land (Gallons in millions) (Metric tons in millions) (Gallons in millions) * * Includes gallon and gallon equivalents Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  9. Slide 9: Consolidated Gross Profit ($ in millions)

    Consolidated Gross Profit ($ in millions) $259 $251 Q1 2019 Q1 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  10. Slide 10: Gross Profit by Segment ($ in millions)

    Gross Profit by Segment ($ in millions) $114 $93 $106 $102 $59 $35 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Aviation Marine Land Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  11. Slide 11: Consolidated Operating Expenses (excluding bad debt provision)

    Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) $205 $176 $175 Q2’20 Estimate: $155 - $160 Q1 2019 Q4 2019 Q1 2020 Q2 2020E Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  12. Slide 12: Cost Reduction Measures We Have Taken

    Cost Reduction Measures We Have Taken  Global hiring freeze and travel ban  Postponement or elimination of all non-essential projects and initiatives  Significant reduction in professional fees, marketing expenses and other discretionary items  Substantially reduced capital expenditures Copyrigh

  13. Slide 13: Consolidated Income From Operations ($ in millions)

    Consolidated Income From Operations ($ in millions) $73 $73 Q1 2019 Q1 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  14. Slide 14: Interest Expense ($ in millions)

    Interest Expense ($ in millions) $20.5 $16.2 Q1 2019 Q1 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  15. Slide 15: Effective Tax Rate

    Effective Tax Rate 27.1% 27.5% Q1 2019 Q1 2020 Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  16. Slide 16: Adjusted Net Income & Adjusted Diluted Earnings Per Share

    Adjusted Net Income & Adjusted Diluted Earnings Per Share ($ in millions except EPS) $43.6 $38.9 $0.67 $0.58 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Adjusted Net Income Adjusted Diluted EPS Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 5

  17. Slide 17: Financial Overview

    Financial Overview • We ended the quarter with more than $1 billion in liquidity • We generated $10 million of cash flow from operations during the first quarter • We entered the crisis with our strongest balance sheet ever, solid performance and increasing returns • We remain focused on reducing ex

  18. Slide 18: Questions + Answers

    Questions + Answers Copyright 2019 World Fuel Services Corporation. All Rights Reserved.

  19. Slide 19: Earnings Reconciliation ($ in millions except per share data)

    Earnings Reconciliation ($ in millions except per share data) Mar YTD 2019 Mar YTD 2020 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $114.3 $0.0 $114.3 $93.2 $0.0 $93.2 Operating Expenses 58.7 (0.3) 58.4 64.1 (0.4) 63.7 Income from Operations 55.6

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