Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q1 2023 Earnings Presentation
30 slides from Wallenius Wilhelmsen Asa's earnings presentation, 2023
Slide 1: Wallenius Wilhelmsen ASA Q1 2023
Wallenius Wilhelmsen ASA Q1 2023
Slide 2: Highlights – Q1 2023
Highlights – Q1 2023 • Solid Q1, though shipping is down from a record Q4 on change in net fuel cost and temporary congestion in Oceania • Logistics segment sees increased demand from auto and terminal services • Government segment experiences continued high U.S. flag cargo activity • AGM approved d
Slide 3: Our strategy
Our strategy Ambition Enablers We will lead the way in transforming shipping and logistics Ensure safety and compliance leadership Work as one Goals Become the leading Be our Grow with customers supply chain and customers’ first and partners sharing mobility orchestrator choice in our journey shippi
Slide 4: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 5: Light vehicle sales expected to increase in 2023
Light vehicle sales expected to increase in 2023 LV SALES LV DEEPSEA LIGHT VEHICLE SALES OUTLOOK Million units 94 94 90 83 88 77 80 79 QoQ Q1-23 (unit growth) -5.2% +0.6% • LV sales down QoQ due to normal • Continued uncertainty in the global 2017 2018 2019 2020 2021 2022 2023 2024 cyclicality econo
Slide 6: BEV sales and China exports contribute to deep sea volume growth
BEV sales and China exports contribute to deep sea volume growth Battery electric vehicle sales are increasing, and forecast is regularly adjusted up GLOBAL BATTERY ELECTRIC VEHICLE SALES OUTLOOK EXPORT FROM CHINA DRIVE LV DEEPSEA VOLUME GROWTH Million units Finished new vehicles, 1,000 units export
Slide 7: High & Heavy exports still solid, supported by record order backlogs
High & Heavy exports still solid, supported by record order backlogs CONSTRUCTION MINING AGRICULTURE EQUIPMENT PRODUCER SALES OUTLOOK2 Billion USD 225 228 211 189 175 171 152 YoY Q1-23 (unit growth) +20.3% 1 +4.1% 1 +5.6% 1 • Residential construction • Metal prices remain well • Food prices declinin
Slide 8: Recent ordering activity brings fleet growth back on long term trend
Recent ordering activity brings fleet growth back on long term trend ORDERBOOK BY DELIVERY YEAR GLOBAL RORO FLEET # of vessels & percentage share of current fleet Million CEU Current OB 25-29 years x% CAGR 60 12% <25 years >30 years 49 51 GLOBAL FLEET* 50 10% 6 10% 40 9% 8% 5 3% 4 30 25 6% 5% 3 0% 5
Slide 9: Port congestion remains a global challenge, with Oceania peaking in Q1
Port congestion remains a global challenge, with Oceania peaking in Q1 Congestion remains an issue but shifts to Oceania +261% Wallenius Wilhelmsen total waiting days in Oceania 477 • Global port congestion remains a challenge 207 reducing overall global fleet capacity 132 95 132 • Epicenter of cong
Slide 10: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 11: Shipping update
Suggestion 1 Shipping Shipping update update
Slide 12: Shipping volumes down 3% on continued congestion and less capacity ex Asia
Shipping volumes down 3% on continued congestion and less capacity ex Asia Shipping services volumes and cargo mix Million CBM +3% -2.2% -3.3% % 18 16.1 16.1 38 • Lower volumes on continued congestion and less 15.3 15.3 15.2 15.6 15.8 15.3 16 14.8 14.2 14.5 36 capacity, while increase in volumes fro
Slide 13: Cautious approach to time charters despite capacity being tied up in congestion
Cautious approach to time charters despite capacity being tied up in congestion Stable fleet from Q4 to Q1* Port congestion remains high and challenging 131 131 129 128 128 1 183 +18% 961 958 815 82 81 82 83 83 44 44 46 45 45 5 6 1 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-22 Q3-22 Q4-22 Q1-23 Owned Long-Ter
Slide 14: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 15: Logistics update
Logistics update
Slide 16: Logistics revenues improve with increased auto volume and strong terminal revenue
Logistics revenues improve with increased auto volume and strong terminal revenue • Auto saw strong volume and accessorization • Terminal lower volume due to congestion offset by strong revenue in Oceania • H&H lower volumes due to seasonality • Inland volumes increased in both US and in Europe Auto
Slide 17: Auto production gain traction as chip shortage situation ease
Auto production gain traction as chip shortage situation ease – still significant upside in auto volumes LOGISTICS – key markets for Light Vehicles North America LV Volume North America BEV production and share of total NA sales In thousands 7 000 31% 35% 28% 30% 5.1 6 000 BEV share of sales 24% 4.4
Slide 18: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 19: Committed to safe and sustainable operations
Committed to safe and sustainable operations Q4-22 Q1-23 • Two serious injuries occurred in our Shipping segment in Q1 • Logistics safety performance (LTIF) above target of 14.15 in Q1 LTIF Shipping 0.45 1.39 • Challenges remain, including high churn of labor and congestion per million man-hours e
Slide 20: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 21: Financial highlights Q1 2023
Financial highlights Q1 2023 (USDm, unless noted) Revenue Adj. EBITDA Q4-22 Q1-23 Financial targets * 1 350 1 255 488 1 149 398 301 ROCE > 8% Group Net profit 246 173 +6.7 14.5% +0.8 1 060 956 427 930 341 278 Shipping Adj. EBITDA margin (%) 36% 32% Equity ratio > 35% 261 277 37 37 211 +5.0 22
Slide 22: After the record results in Q4, Q1 saw somewhat lower earnings
After the record results in Q4, Q1 saw somewhat lower earnings, but all segments contributed to deliver our third best EBITDA ever Shipping – Adj. EBITDA 1 Logistics – Adj. EBITDA Government – Adj. EBITDA 1 USDm USDm USDm +23% -20% % % % 427 +65% -2% +189% -37% 450 379 50 50 50 50 50 341 37 37 40 40
Slide 23: EBITDA down from Q4 – falling fuel surcharges a significant factor
EBITDA down from Q4 – falling fuel surcharges a significant factor -95 • Revenue down USD 95m QoQ -30 • Lower volume and reduced net -17 freight rates in shipping trade mix -55 16 USDm • Reduced fuel surcharges 1 350 9 -2 -16 • Lower volumes and revenues in 1 255 government services due to timing an
Slide 24: Negative change in net fuel cost in Q1
Negative change in net fuel cost in Q1 Net fuel cost ($m) Net fuel cost (fuel cost less FAF surcharge) • In general, net fuel cost will be higher in periods when prices rise, and vice versa 123 122 128 109 118 104 • Fuel surcharges lag fuel prices by 3 to 5 79 +320% months 48 • In Q1, smaller change
Slide 25: Cash increased by USD 223m driven by solid EBITDA and positive working capital
Cash increased by USD 223m driven by solid EBITDA and positive working capital Comments +223 • Key net CAPEX items include investment 74 -1 -2 -40 19 -53 in a subsidiary, drydock and other -145 1 439 -6 -19 398 maintenance 1 216 • Other investing items include interest received* in Q1 USDm • Negativ
Slide 26: Solid balance sheet and strong liquidity position
Solid balance sheet and strong liquidity position Comments Balance Sheet per end Q1-23 Debt Maturity Profile USD million USD million • Equity ratio at 42.4% Assets Equity & Liabilities • Net debt decreased to USD 2.5bn 8 566 8 566 1 022 on increased cash and debt 193 repayments 3 631 • No bond matur
Slide 27: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 28: Prospects
Prospects Market demand remains robust despite the current economic slowdown, and we expect continued high volumes and a tight market balance in 2023. The fundamentals also look strong longer term, though with higher levels of uncertainty. This is related to the newbuild additions to the global flee
Slide 29: Q&A
Q&A 29
Slide 30: Thank you!
A\ Wallenius Wilhelmsen Thank you!