Wallenius Wilhelmsen Asa · OSL:WAWI

Wallenius Wilhelmsen Asa — Q2 2022 Earnings Presentation

28 slides from Wallenius Wilhelmsen Asa's earnings presentation, 2022

  1. Slide 1: Wallenius Wilhelmsen ASA Q2 2022

    Wallenius Wilhelmsen ASA Q2 2022

  2. Slide 2: A world leader rolling equipment logistics

    A world leader rolling equipment logistics

  3. Slide 3: Highlights – Q2 2022

    Highlights – Q2 2022 • Strong EBITDA of USD 311m on continued solid shipping results • Cash position increased to USD 821m driven by solid EBITDA • Lasse Kristoffersen joined as CEO • Dividend installment of USD 38m paid to shareholders • USD 950m in new debt with pricing linked to emission reductio

  4. Slide 4: Agenda

    Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Financial update 5. Sustainability update 6. Prospects and Q&A

  5. Slide 5: LV sales still expected to increase next year despite cooling economy

    LV sales still expected to increase next year despite cooling economy and consumer sentiment LV SALES LV DEEPSEA LIGHT VEHICLE SALES OUTLOOK +8% +4% 0% YoY Q2-22 (unit growth) -13.0% -15.8% o The global economy under pressure by o Semiconductor shortage holding back production as: -14% increased inf

  6. Slide 6: Machinery demand remains strong as global export volumes inch up to all-time high

    Machinery demand remains strong as global export volumes inch up to all-time high CONSTRUCTION MINING AGRICULTURE EQUIPMENT PRODUCER SALES OUTLOOK3 +26% +13% YoY Q2-221,2 (unit growth) +3.7% +25.9% -4.1% +5% o Slowing construction activity o Metal prices above historic o Historically high commodity

  7. Slide 7: Tight tonnage situation - limited recycling and moderate but increasing orderbook

    Tight tonnage situation - limited recycling and moderate but increasing orderbook New orders have a lead time of 3-4 years. Easing of current supply chain inefficiencies will add capacity GLOBAL FLEET* End Q2 (end Q1) #43 (43) #75 (51) 94% (94%) vessels built between fleet utilization rate in vessel

  8. Slide 8: Agenda

    Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Financial update 5. Sustainability update 6. Prospects and Q&A

  9. Slide 9: Shipping update

    _ Shipping update

  10. Slide 10: Shipping volumes up 4% QoQ despite challenging operating environment

    Shipping volumes up 4% QoQ despite challenging operating environment Shipping services volumes and cargo mix Million CBM -2% +4% % 40 18 16.6 15.6 16.1 15.9 • Volume growth mainly from exports out of Europe and US 16 15.3 14.8 15.2 15.2 35 14.5 14 12.6 11.9 12.5 30 • Port congestions creates signifi

  11. Slide 11: Stable fleet development in Q2

    Stable fleet development in Q2 Fleet capacity Fleet composition1 • Total fleet at 128 vessels 136 132 129 131 129 127 127 128 128 122 • Sale of 25-year old vessel 117 • Marginal increase of short-term 74 charters 81 77 82 83 82 81 81 81 73 • Redelivery of one long-term 75 charter • No further newbui

  12. Slide 12: Agenda

    Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Financial update 5. Sustainability update 6. Prospects and Q&A

  13. Slide 13: Logistics update

    Logistics update 13

  14. Slide 14: Volumes declined on continued supply chain issues due to parts shortages

    Volumes declined on continued supply chain issues due to parts shortages • Auto decreased revenue at ports and plants due to parts shortages • H&H revenue increased on strong volume, accessorization and storage • Terminal revenues decreased as congestion led to fewer vessel calls • Inland revenue in

  15. Slide 15: Chip shortage continues to impact key logistics market

    Chip shortage continues to impact key logistics market, while negative global economic developments might reduce the pent-up demand LOGISTICS – key markets for Light Vehicles North America LV Volume Europe LV Volume 5.7 5.5 6.4 5.6 4.5 4.2 4.4 Units per 3.6 4.3 3.4 quarter in millions Q2 2019 Q2 202

  16. Slide 16: Agenda

    Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Financial update 5. Sustainability update 6. Prospects and Q&A

  17. Slide 17: Financial highlights Q2 2022

    Financial highlights  Q2 2022 (USDm, unless noted) Revenue Adj. EBITDA Adj. ROCE* (%) Q1-22 Q2-22 1,149 1,190 301 305 +6.1 8.9 Group 978 205 +1.1 Net profit 177  126 930 968 278 280 757 Adj. EBITDA Shipping 163 26.2%  25.6% Equity ratio (%) margin (%) +3.0 203 211 208 35 37.5 +0.1 22 18 Logistics

  18. Slide 18: EBITDA margin remains high on solid shipping levels

    EBITDA margin remains high on solid shipping levels, flat government levels, though countered by logistics margins under pressure Shipping – Adj. EBITDA 1 Logistics – Adj. EBITDA 1 Government – Adj. EBITDA 1 USDm USDm USDm +72% +1% - 48% -18% -22% +17% 279 278 280 35 300 50% 35 20% 20 40% 32 10 8 9

  19. Slide 19: Revenues increased QoQ, while adjusted EBITDA was flat on cost pressure

    Revenues increased QoQ, while adjusted EBITDA was flat on cost pressure +41 • Revenue up USD 41m QoQ 0 1 6 -3 -1 • Volume effect offset by lower 34 -36 40 rates per CBM driven by trade and cargo mix 1 190 USDm 1 149 • Fuel surcharges increase on the higher global oil prices Revenue Volume effect Rev

  20. Slide 20: Cash increased by USD 62m driven by solid EBITDA

    Cash increased by USD 62m driven by solid EBITDA. First dividend of USD 38m paid Comments • Working capital includes payment of -141 USD 14m in customer settlements and 329 305 -1 -9 -6 247 1 -43 fines 7 -14 -38 • Net capex includes: • USD 21m vessel sale proceeds • USD 15m in vessel maintenance USD

  21. Slide 21: Solid balance sheet and strong liquidity position

    Solid balance sheet and strong liquidity position Comments Balance Sheet (30-Jun-22) Debt Maturity Profile USD million USD million • Equity ratio at 37.5% Assets Equity & Liabilities 857 8 051 8 051 790 • Net debt down to USD 3.26bn 70 71 50 • 2022 bond and bank maturities covered by signed refinanc

  22. Slide 22: USD 800m in new flagship loans with pricing linked to CO2 intensity target

    USD 800m in new flagship loans with pricing linked to the CO2 intensity target • 2 facilities with 11 banks at attractive terms and pricing USD 800m in • 5.5/6.5-year tenors, including USD 270m of revolving credit lines loans • For general refinancing of USD 569m of vessel debt and corporate purpose

  23. Slide 23: Agenda

    Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Financial update 5. Sustainability update 6. Prospects and Q&A

  24. Slide 24: New USD 950m in sustainability-linked debt

    New USD 950m in sustainability-linked debt – underlining commitment to carbon intensity target Q1-22 Q2-22 • Our target is to reduce CO2 intensity by 27.5% from 2019-2030 • Our Sustainability-linked financing framework defines the KPI and Total CO2 1.20  1.09 annual interim targets to which we link

  25. Slide 25: Agenda

    Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Financial update 5. Sustainability update 6. Prospects and Q&A

  26. Slide 26: Prospects

    Prospects We continue to expect the supply-demand balance in shipping to remain favorable over the mid-term due to the overall global fleet situation. Logistics volumes will benefit from gradual improvement of automotive parts supply expected during the latter part of 2022. This is expected to allow

  27. Slide 27: Q&A

    Q&A

  28. Slide 28: Thank you

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