Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q2 2015 Earnings Presentation
26 slides from Wallenius Wilhelmsen Asa's earnings presentation, Aug 6, 2015
Slide 1: Second quarter 2015
> Wilh.Wilhelmsen Second quarter 2015 Wilh.Wilhelmsen ASA /// 6 August 2015 Jan Eyvin Wang, President and CEO
Slide 2: Disclaimer
> Disclaimer This presentation contains forward-looking expectations which are subject to risk and uncertainties related to economic and market conditions in relevant markets, oil prices, currency exchange fluctuations etc. Wilh. Wilhelmsen ASA group undertake no liability and make no representation
Slide 3: Healthy growth in car sales
> Healthy growth in car sales But uncertainty in emerging markets QoQ 2016 FY/ Region Q2 2015 Q1 2015 change Q2 2014 YoY change 2015 FY 2016 FY 2015 FY N America 5,43 4,63 17 % 5,23 4% 19,90 20,30 2% Europe* 4,01 4,07 -1 % 3,89 3% 15,00 15,40 3% Oceania 0,33 0,31 5% 0,32 0% 1,20 1,30 8% BRICs 7,58 8
Slide 4: Korean car exports are holding up
> Korean car exports are holding up While Japanese exports is at a low level Quarterly Light Vehicle Export from Japan and Korea ('000 units) Japan Korea 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Source; JAMA, KAMA, WWL GMI 4
Slide 5: Group volumes up from a weak first quarter
> Group volumes up from a weak first quarter Volumes were up 6% q-o-q and down 5% y-o-y Million Cbm 22 -5% +6% 20 18 16 14 12 10 8 6 4 2 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15
Slide 6: Higher volumes but suboptimal cargo mix
> Higher volumes but suboptimal cargo mix High and Heavy Auto • Oceania up from a weak first quarter due to • All trades saw a lift in volumes, but Asia cargo restrictions to Europe remained flat • Construction volumes to North America remained strong, however weaker than last quarter Index 6 Unpror
Slide 7: Tonnage
> Tonnage Optimizing fleet • EUKOR ordered 2 post panamax vessels for delivery in 2017 • MV Thalatta delivered in April • 8 total group deliveries 2016-17 • Net decrease of three vessels from last quarter MV Thalatta 7
Slide 8: Fleet operation
> Fleet operation • Total WW off-hire in Q2; 182 days (Q1 2015; 8 days) – Planned 71.5 days – Unplanned 110.5 days • Normal planned off-hire during a year ~100 days (7 dry dockings) • Bunker price increase during the quarter led to reduced margins 8
Slide 9: Anti trust investigation
> Anti trust investigation • 30 July, Wallenius Wilhelmsen Logistics (WWL), owned 50% by Wilh.Wilhelmsen ASA, reached a settlement agreement with the Competition Commission in South Africa. • If the settlement is confirmed by the Competition Tribunal of South Africa, WWL will pay an administrative p
Slide 10: Prospect
> Prospect Based on the market outlook, the WWASA board expects seasonally lower auto volumes and continued soft high and heavy volumes in the second half of 2015. Logistics activities are anticipated to be on par with the first half of 2015. 10
Slide 11: Wilh. Wilhelmsen ASA Second quarter 2015
> Wilh. Wilhelmsen ASA Second quarter 2015 Wilh.Wilhelmsen ASA 6 August 2015 Benedicte B. Agerup, CFO
Slide 12: Group – Key financials
> WWASA Group – Key financials Underlying (adjusted) EBIT in line with previous quarter • Total income reported - 2% q-o-q, - 13% y-o-y • EBIT reported - 25% q-o-q, + 29% y-o-y • EBIT adjusted in line with Q1 • Lifting capacity reduced by 2% and one newbuilding delivered in April 2014 2015 Total inc
Slide 13: EBIT bridge q-o-q
> WWASA EBIT bridge q-o-q Underlying profit stable q-o-q Q1 2015 Q2 2015 MUSD 98 73 74 100 1 90 26 80 72 70 60 50 40 30 20 10 0 EBIT reported Gain on share EBIT adjusted EBIT reported Sales loss EBIT adjusted Q1 2015 reduction in Q1 2015 Q2 2015 Q2 2015 Hyundai Glovis 13
Slide 14: Group - Profit and Loss 2015
> WWASA Group - Profit and Loss 2015 Proportionate method WW ASA Group USD mill 2015 Q2 2015 Q1 2015 YTD 2014 YTD 2014 Q2 2014 FY Operating income 583 573 1 156 1 292 667 2 525 Gain on sale of assets 26 27 Share of profits from JV's and associates 14 9 23 26 15 66 Total income 596 609 1 205 1 318 68
Slide 15: EBITDA adjusted for non-recurring items
> WWASA EBITDA adjusted for non-recurring items In line with previous quarter and same period last year USD mill 200 154 150 150 135 -2% 4% 120 120 118 121 116 114 106 110 104 102 100 91 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2
Slide 16: Shipping – Key financials
> WWASA Shipping – Key financials Performance on par with previous quarter • Total income reported + 2% q-o-q, - 13% y-o-y • EBIT reported - 3% q-o-q, + 56% y-o-y • Higher shipped volumes but unfavourable cargo mix • Higher net bunker costs and negative impact from off hire q-o-q 2014 2015 USD mill
Slide 17: Shipping – EBIT margin
> WWASA Shipping – EBIT margin Shipping margins continue to be under pressure USD mill Operating revenue - Shipping EBIT margin EBIT margin adjusted 700 18.0 % 16.0 % 600 14.0 % 500 12.0 % 400 10.0 % 300 8.0 % 6.0 % 200 4.0 % 100 2.0 % - 0.0 % Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Slide 18: Net bunker costs (WWASA share)
> WWASA net bunker costs (WWASA share) EBIT margin negatively impacted by increased net bunker costs q-o-q Q1 2015 Q2 2015 Voyage costs Operating income EBIT Voyage costs Operating income EBIT 45 20 MUSD -41 Negative EBIT impact MUSD -14 q-o-q -55 -85 -75 18
Slide 19: Logistics – Key financials
> WWASA Logistics – Key financials Underlying EBIT improved q-o-q • Total income reported -14% q-o-q, - 9% y-o-y • EBIT reported - 56% q-o-q, - 22% y-o-y • Adjusted EBIT higher q-o-q • Increased contribution, primarily driven by Hyundai Glovis • Market value of 12.0% ownership in Hyundai Glovis USD
Slide 20: Group – Financial income (expense)
> WWASA Group – Financial income (expense) Improved financial income q-o-q USD mill 2015 Q2 2015 Q1 2014 Q1 2014 FY Net fi na nci a l i tems (0.8) 7.8 5.0 (0.5) Net i nteres t expens es (23.3) (22.6) (18.0) (91.2) Interes t ra te deri va ti ves - unrea l i s ed 18.5 1.4 (5.6) (16.8) Net fi na nci a
Slide 21: Group – Balance Sheet
> WWASA Group – Balance Sheet Strong balance sheet USD mill 30.06.2015 31.03.2015 31.12.2014 Assets Non current assets 3 080 88 % 2 995 86 % 2 955 88 % Current assets (excl liquid funds) 31 1% 61 2% 23 1% Liquid funds 408 12 % 408 12 % 375 11 % Total assets 3 519 100 % 3 464 100 % 3 353 100 % Equity
Slide 22: Group - Committed CAPEX, incl. dry-docking
> WWASA Group - Committed CAPEX, incl. dry-docking Stable CAPEX the next two years USD mill 297 300 250 200 152 145 150 100 50 0 -50 -100 -150 -141 Paid capex 1st half 2015 2015 FY 2016 FY Acc 2015-2016 • One vessel delivered 7. April 2015, MV Thalatta 22
Slide 23: Group – Liquidity development
> WWASA Group – Liquidity development Continued high liquidity buffers USD mill 530 520 510 38 500 490 73 480 470 40 33 460 450 85 15 440 430 420 28 408 408 410 400 10 0 Liquidity EBITDA*) JV’s/ Dividend Net Capex Interest Dividend to Liquidity Q1 2015 associates received financing shareholders Q2 2
Slide 24: Group – interest bearing debt
> WWASA Group – interest bearing debt Sound maturity profile USD mill 450 • New debt in Q2 to finance second post Bonds Tax leases 421 400 Banks Export financing panamax vessel Thalatta. 350 344 • Ordinary instalments of USD 26 million 300 286 in Q2. 250 189 • Refinancing of three vessels previously
Slide 25: Group – Semi-annual dividend per share
> WWASA Group – Semi-annual dividend per share Dividend of NOK 1.00 per share in H1 approved by AGM NOK/share 4,0 4,0 • Dividend payment of 3,5 NOK 220 million 7 May 2015. 3,0 • Board of directors 2,5 authorized to pay 2,0 additional dividend up to 1,5 NOK 1.25 per share. 1,0 1,0 1,0 1,0 1,0 0,8 • T
Slide 26: Thank you!
> Thank you! www.wilhelmsenasa.com