Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q2 2017 Earnings Presentation
27 slides from Wallenius Wilhelmsen Asa's earnings presentation, Aug 9, 2017
Slide 1: Q2 Presentation
Q2 Presentation August 9th 2017 Craig Jasienski, President & CEO Rebekka Glasser Herlofsen, CFO
Slide 2: Agenda
Agenda Business Update Financial Performance Market and Business Outlook Summary and Q&A 2
Slide 3: Business Update
BUSINESS UPDATE by Craig Jasienski 3
Slide 4: Business update Q2 at a glance
Business Update Financial Performance Market and Business Outlook Summary and Q&A Business update Q2 at a glance… Organizational restructuring completed Realization of synergies well on the way Volume, cargo and trade mix show positive development Still pressure on ocean rates Positive development f
Slide 5: Organizational restructuring completed
Business Update Financial Performance Market and Business Outlook Summary and Q&A Organizational restructuring completed - Organizational restructuring completed with a ~20% reduction in office staff - USD 20 million in personnel related restructuring costs accounted for in the second quarter, well
Slide 6: Realization of synergies well on the way
Business Update Financial Performance Market and Business Outlook Summary and Q&A Realization of synergies well on the way… - Approximately half of the targeted annualized synergies have been confirmed, through actions related to the organizational restructuring and procurement - USD 5 million alrea
Slide 7: Volume and cargo mix show positive development
Business Update Financial Performance Market and Business Outlook Summary and Q&A Volume and cargo mix show positive development Volume and cargo mix development Million CBM and % Comments Volume HH share of volumes • Ocean transported volumes up 12% q-o-q, Million CBM % 22 35 largely driven by seas
Slide 8: Good seasonal development in all foundation trades
Business Update Financial Performance Market and Business Outlook Summary and Q&A Good seasonal development in all foundation trades EU - ASIA Asia - EU Atlantic Shuttle +1% +14% +22% +22% -10% +5% 3.1 3.2 3.3 2.8 2.7 2.7 3.3 2.9 3.0 Q2 ’16 Q1 ’17 Q2 ’17 Q2 ’16 Q1 ’17 Q2 ’17 Q2 ’16 Q1 ’17 Q2 ’17 Asi
Slide 9: But there is still significant pressure on rates
Business Update Financial Performance Market and Business Outlook Summary and Q&A But there is still significant pressure on rates Net freight / CBM development1 Indexed to 100 per Q2 2014 Comments 105 • Net freight / CBM development not only impacted by rates, but also trade, customer and cargo mix
Slide 10: Total fleet is 127 vessels, with one delivery in the second quarter
Business Update Financial Performance Market and Business Outlook Summary and Q&A Total fleet is 127 vessels, with one delivery in the second quarter Fleet development Comments CEU in 1000, # of vessels • WWL ASA operates approximately 20% of the global CEU ‘000 # of vessels 1,000 180 car carrier fl
Slide 11: The positive development for landbased continues
Business Update Financial Performance Market and Business Outlook Summary and Q&A The positive development for landbased continues… • Continued strong performance for technical services supported by stable volumes and high content value adding services for VSA • Build-up of auto inventories in the U
Slide 12: Financial Performance
Financial Performance by Rebekka Glasser Herlofsen 12
Slide 13: Consolidated results – second quarter
Business Update Financial Performance Market and Business Outlook Summary and Q&A Consolidated results – second quarter Consolidated results - Total income and EBITDA1, 2 USD million Comments • Extraordinary items in the second quarter include Total income EBITDA • Merger accounting loss of USD 62 m
Slide 14: Ocean segment – second quarter
Business Update Financial Performance Market and Business Outlook Summary and Q&A Ocean segment – second quarter Total income and EBITDA ocean segment1, 2 USD million Comments • Ocean income was USD 798 million, up 11% Total income EBITDA since previous quarter Extraordinary items • EBITDA adjusted
Slide 15: Landbased segment – second quarter
Business Update Financial Performance Market and Business Outlook Summary and Q&A Landbased segment – second quarter Total income and EBITDA landbased segment1, 2 USD million Comments Total income EBITDA • Landbased income was USD 192 million, up 3% since previous quarter Extraordinary items • EBITD
Slide 16: Consolidated results – First Half Year 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Consolidated results – First Half Year 2017 Consolidated results - Total income and EBITDA1, 2 USD million Comments Total income EBITDA • Extraordinary items in the first half include • Merger accounting loss of USD 62
Slide 17: Balance sheet review
Business Update Financial Performance Market and Business Outlook Summary and Q&A Balance sheet review Unaudited Balance Sheet 30.06.2017 USD billion Comments ASSETS EQUITY & LIABILITIES • Net interest bearing debt of USD ~3.2 billion, of which cash and cash equivalents of USD 755 7.7 7.7 million •
Slide 18: Cash flow and liquidity development
Business Update Financial Performance Market and Business Outlook Summary and Q&A Cash flow and liquidity development Cash flow and liquidity development USD million 150 62 18 755 106 -90 -48 -49 607 Liquidity EBITDA Merger loss Other CAPEX Proceeds from Net financing1 Interest and Liqudity Q1 2017
Slide 19: Market and Business Outlook
Market and Business Outlook by Craig Jasienski 19
Slide 20: Auto sales dropped 1.7% q-o-q driven by drop in China
Business Update Financial Performance Market and Business Outlook Summary and Q&A Auto sales dropped 1.7% q-o-q driven by drop in China Global auto sales per main sales region1 Comments to global auto sales CAGR 2016-2021, Change Q2’17 vs Q1’17 APAC EUR ME AF AM • Increased sales of 11.1% q-o-q in t
Slide 21: Auto exports increased with 1.6% q-o-q
Business Update Financial Performance Market and Business Outlook Summary and Q&A Auto exports increased with 1.6% q-o-q Global auto export per main production region1,2 Comments to global light vehicle export CAGR 2016-2021, Change Q2’17 vs Q1’17 EUR APAC ME AF AM CAGR ’16-21 • NAFTA exports (drive
Slide 22: Moderately improving outlook for Construction and Agriculture
Business Update Financial Performance Market and Business Outlook Summary and Q&A Moderately improving outlook for Construction and Agriculture Construction growth picking up Mixed outlook for Agriculture equipment World construction spending (% y/y), 12-20E1 European business climate (Index 100/-10
Slide 23: The recovery for the mining segment is still slow
Business Update Financial Performance Market and Business Outlook Summary and Q&A The recovery for the mining segment is still slow Continued uptick in global equipment deliveries Several regions have seen imports bottom out Global surface mining equipment shipments (Index ‘07 = 100), 07-171 Customs
Slide 24: Moderate net fleet growth forecasted going forward
Business Update Financial Performance Market and Business Outlook Summary and Q&A Moderate net fleet growth forecasted going forward 3% of fleet are recycling candidates… ..contributing to moderate net fleet growth Fleet by year of build, 1000 CEU Forecasted net fleet growth, % p.a. 400 388 ACTIVE O
Slide 25: Summary and outlook
Business Update Financial Performance Market and Business Outlook Summary and Q&A Summary and outlook SUMMARY OUTLOOK Organizational restructuring completed and The Ocean business is still faced with tough realization of synergies well under way; USD 100 competition and pressure on rates million tar
Slide 26: Q&A
Q&A by Craig Jasienski and Rebekka Glasser Herlofsen 26
Slide 27: Thank you!
WALLENIUS WILHELMSEN LOGISTICS ASA Thank you!