Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q1 2016 Earnings Presentation
26 slides from Wallenius Wilhelmsen Asa's earnings presentation, May 2016
Slide 1: Wilh. Wilhelmsen ASA First quarter 2016
> Wilh. Wilhelmsen ASA First quarter 2016 Wilh. Wilhelmsen ASA /// May 2016 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: Agenda
> Agenda • Market development • Volume development • Prospects 3
Slide 4: Global light vehicle sales
> Global light vehicle sales 4 Source: WWL
Slide 5: Caterpillar – Resource Industries sales quarterly
> Caterpillar – Resource Industries* sales quarterly Remaining soft USD billion *CAT Resource Industries: Customers using machinery primarily in mining, quarry, waste and material handling applications. 5 Source: CAT
Slide 6: Group ocean volume development
> Group ocean volume development Sharp decline in Q1 Million Cbm 22 -14% -15% 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 Q3 Q4 Q1 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 15 15 16 6 Prorated oce
Slide 7: Group ocean cargo segment development
> Group ocean cargo segment development Auto High and heavy • Seasonality • Slight pick up in volumes • Reduced volumes in most main trades • Increased exports from Asia • New EUKOR OCC • Overall volumes remain at a low level 7 Unprorated ocean volumes – WWL and EUKOR (100%)
Slide 8: Japanese auto exports in a downward trend
> Japanese auto exports in a downward trend Units 8 Source: JAMA and KAMA
Slide 9: Auto deep sea market: Increasing fragmentation (1990)
> Auto deep sea market: Increasing fragmentation 1990 – mainly a Japanese-US/German affair Million units 9 Source: WWL
Slide 10: Auto deep sea market: Increasing fragmentation (2020)
> Auto deep sea market: Increasing fragmentation 2020 – much more fragmented and complex Million units 10 Source: WWL
Slide 11: Market outlook
> Market outlook • Soft auto market expected to continue – Earthquake in Japan only to have limited impact • No pick-up in high and heavy volumes – Mining activity to remain sluggish – Construction and agriculture flat • Growth in logistics activities – Positive trend to continue 11
Slide 12: Our response
> Our response Adjusting group tonnage to reduced volumes 147 vessels 137 vessels 132 vessels • Five group vessels taken out in Q1, of which three were recycled by WWASA • Two newbuildings to be delivered to WWASA in Q2 12
Slide 13: Prospects
> Prospects The board expects volume growth to remain weak over the next period, with continued pressure on margins. The approved demerger of Den Norske Amerikalinje AS will reduce the future contribution from the logistics segment. 13
Slide 14: Wilh. Wilhelmsen ASA First quarter 2016
> Wilh. Wilhelmsen ASA First quarter 2016 Wilh.Wilhelmsen ASA May 2016 Benedicte B. Agerup, CFO
Slide 15: WWASA Group – Key financials
> Non WWASA Group – Key financials recurring gain lifted operating profit • Total income reported +12% q-o-q, stable y-o-y • EBIT reported +90% q-o-q, +29% y-o-y • Non recurring gain of USD 80 million in the logistics segment • Sharp decline in ocean transported volumes • Three vessels recycled for
Slide 16: WWASA Group – Profit and Loss Q1 2016
> WWASA Group – Profit and Loss Q1 2016 Proportionate method USD mill 2016 Q1 2015 Q4 2015 Q1 2015 FY Operating income 515 541 573 2 243 Gain on sale of assets 80 26 29 Share of profits from JV's and associates 13 2 9 36 Total income 608 545 609 2 308 EBITDA 161 108 136 262 Depreciation and impairme
Slide 17: WWASA Shipping – Key financials
> Sharp WWASA Shipping – Key financials decline in auto volumes, H/H stable at a low level • Total income reported - 18% q-o-q, - 22% y-o-y • EBIT reported - 55% q-o-q, - 53% y-o-y. • Lower fleet utilisation caused by sharp decline in cargo volumes • Pressure on freight rates continued • Non recurri
Slide 18: WWASA Shipping – EBIT margin
> WWASA Shipping – EBIT margin Underlying margin falling q-o-q 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 Q4 2013 Q1 2
Slide 19: WWASA Logistics – Key financials
> WWASA Logistics – Key financials Non recurring gain of 80 million lifted operating profit • Total income reported + 116% q-o-q, + 67% y-o-y • EBIT adjusted +212% q-o-q, +43% y-o-y • USD 80 million gain related to WWL’s acquisitions in the US and South Africa and sale of entity in EU • Higher contr
Slide 20: Committed CAPEX ending in Q2 2016
> WWASA Committed CAPEX ending in Q2 2016 • CAPEX program finalized Q2 2016 with delivery of 2 post panamax vessels in April and June • Both vessels financed through sale leaseback • Positive cash effect in Q2 of USD ~ 35 million (at time of delivery) 20
Slide 21: WWASA Group – Financial income/(expense)
> WWASA Group – Financial income/(expense) Stable net financial expenses q-o-q USD mill 2016 Q1 2015 Q4 2015 Q1 2015 FY Net fi na nci a l i tems 1.0 2.5 7.8 (6.3) Net i nteres t expens es (22.8) (23.5) (22.6) (91.4) Interes t ra te deri va ti ves - unrea l i s ed (14.4) 19.7 1.4 24.3 Net fi na nci a
Slide 22: WWASA Group – Balance Sheet
> WWASA Group – Balance Sheet Strong balance sheet USD mill 31.03.2016 31.12.2015 Assets Non current assets 2,628 78% 2,925 89% Financial assets held for distribution 349 10% n/a Current assets (excl liquid funds) 65 2% 24 1% Liquid funds 338 10% 349 11% Total assets 3,380 100% 3,299 100% Equity & l
Slide 23: WWASA Group – interest bearing debt
> WWASA Group – interest bearing debt Refinancing of balloons in 2018/2019 Bonds Banks Export financing USD million 343 346 350 • Ordinary instalments of approx. USD 20 million in Q1. 300 285 • Bond maturity in March of approx. 250 USD 15 million financed from cash position. 200 • Bond maturity in N
Slide 24: WWASA Group – Liquidity development
> WWASA Group – Liquidity development Continued high liquidity buffers USD mill 500 450 102 137 400 37 349 350 338 13 13 21 12 0 Liquidity EBITDA*) JVs/ Net Capex Proceeds Interest Other Liquidity Q4 2015 associates financing from sale Q1 2016 of vessels *) Equity 24
Slide 25: WWASA Group – Semi-annual dividend per share
> WWASA Group – Semi-annual dividend per share NOK/share 4.00 4.00 • No dividend to be paid in 3.50 Q2 2016 for the fiscal year 2015 3.00 • Demerger of NAL 2.50 (Hyundai Glovis) to 2.00 visualize values for shareholders 1.50 • Substatial lift in share 1.00 1.00 1.00 1.00 1.00 price of WWASA 0.75 0.6
Slide 26: Thank you!
> Thank you! www.wilhelmsenasa.com