Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Investor Presentation (December 2022)
29 slides from Wallenius Wilhelmsen Asa's investor presentation, Dec 7, 2022
Slide 1: Investor Presentation 7 December 2022
Investor Presentation 7 December 2022
Slide 2: Investment highlights
Investment highlights Global market leader in vehicle logistic segment Long-term customer base and diversified business model Strong history of free cash flow Solid market fundamentals and results Ambitious carbon target and commitment to sustainability 2
Slide 3: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 4: A logistics provider built on a strong history
A logistics provider built on a strong history ~8,200 126 Employees Vessels in • 2017 merger of companies with >150-year history across 29 operation countries • Listed on Oslo Stock Exchange (ticker: WAWI) with a market cap of USD 4 bn* • Wilh. Wilhelmsen Holding ASA and Wallenius Lines AB largest s
Slide 5: A history of innovation and adaptation
A history of innovation and adaptation 1861 1990 2002 2017 Wilhelmsen Group American Roll-on Roll- EUKOR formed as Merger to create Wallenius Wilhelmsen Founded in off Carrier (ARC) Wilhelmsen Group and Logistics ASA as a listed company Tonsberg, Norway founded by Wilhelmsen Wallenius Shipping acqui
Slide 6: Our business
Our business Factory and plants Terminals Terminals Processing centers WA LL EN IU S W IL HE LM SE N Vessels End customers 6
Slide 7: We deliver services through our three business segments
We deliver services through our three business segments Shipping services Logistics services Government services Share of EBITDA* Highlights: Share of EBITDA* Highlights: Share of EBITDA* Highlights: • Worldwide deep-sea • Terminals: 8 controlled + • RoRo shipping cargo, transportation network 7% 3
Slide 8: Shipping benefits from a diversified customer portfolio with long-term contracts
Shipping benefits from a diversified customer portfolio with long-term contracts AUTO HIGH & HEAVY AND BREAKBULK • Majority of volumes from auto • High & heavy (“H&H”) and breakbulk maximize cubic utilization • Unique handling capabilities for high & heavy and breakbulk • Main customers include all
Slide 9: We are the market leader and the #1 operator globally within Shipping services
We are the market leader and the #1 operator globally within Shipping services Four decades of leading the High & Heavy space CURRENT FLEET BY OPERATOR GROUP FLEET CHARACTERISTICS Average max ramp capacity, tons 300 862 250 WW Ocean Capacity, kCEU* 200 GRIMALDI 150 HAUTO K LINE EUKOR 100 MOL 50 NYK
Slide 10: Logistics services portfolio enable us to provide end-to-end services
Logistics services portfolio enable us to provide end-to-end services PROCESSING CENTERS VEHICLE PROCESSING HIGH & HEAVY SERVICES TERMINAL SERVICES INLAND / SUPPLY CHAIN Vehicle Processing Vehicles Processed* Equip Processing Centre Machines Processed* Marine Terminals Units Handled* Inbound Distrib
Slide 11: Our strategy to strengthen our competitive advantage
Our strategy to strengthen our competitive advantage End-to-end supply chain Expand to full lifecycle Drive operational Lead the journey to zero orchestration effectiveness emissions Digitalization Supreme customer Efficiency Zero emission experience 11
Slide 12: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 13: Still solid outlook for the RoRo industry
Still solid outlook for the RoRo industry IT HAS BEEN AN EVENTFUL YEAR… …SOLID UPSIDE FOR RORO TRANSPORTATION • Started the year on a high note despite the • GDP expected to increase with 2.9% for 2022FY inflation in US and 1.5% for 2023FY • War in Ukraine leads to uncertainty, increased • Increased
Slide 14: Car fleet in % of population
Megatrend: More people moving up in the middle class will lead to increased need for mobility and more vehicle sales Car fleet in % of population vs GDP per capita Car fleet in % of population GDP pr capita (1,000 USD) Source: S&P (previously IHS Markit) / Clarksons / Market Insight Wallenius Wilhel
Slide 15: Semiconductor shortage expected to ease, and solid growth expected from 2023 onwards
Semiconductor shortage expected to ease, and solid growth expected from 2023 and onwards Global LV sales in million Comments on LV sales Deepsea share Import • More people moving up in the middle Domestic class and increased need for mobility • Supply chain constraints including +2,0% semiconductor
Slide 16: BEV sales are increasing and contributing to the growth we see in the AS-EU trade
BEV sales are increasing and contributing to the growth we see in the AS-EU trade, shipments for giga factories becoming a new segment within BB cargo Global Battery Electric Vehicle sales in million Cargo transported on RoRo vessels to EV giga factories 33.4 29.0 24.1 20.0 15.4 11.4 8.2 4.8 2.3 202
Slide 17: H&H demand to peak at high level in 2022 with some contraction expected in 2023
H&H demand to peak at high level in 2022 with some contraction expected in 2023 CONSTRUCTION MINING AGRICULTURE Analyst consensus OEM sales Analyst consensus OEM sales Analyst consensus OEM sales +28% +25% +21% +21% +17% +8% +7% +8% +7% +5% +5% +3% 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2
Slide 18: High global fleet utilization rate expected to continue through 2023
High global fleet utilization rate expected to continue through 2023 Easing of current supply chain inefficiencies will add capacity GLOBAL FLEET* End Q3 (end Q2) #94 (75) #106 (106) 96% (96%) vessels built from fleet utilization rate in vessels in orderbook 1981 until 2002 2023 Source: Clarksons, *
Slide 19: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 20: Financial highlights Q3 2022
Financial highlights Q3 2022 (USDm, unless noted) Revenue Adj. EBITDA Adj. ROCE* (%) Q2-22 Q3-22 1 190 1 356 434 +7.9 11.6 Group 990 305 223 +2.8 Net profit 126 246 1 079 379 968 787 280 Adj. EBITDA Shipping 195 25.6% 32% Equity ratio (%) margin (%) +3.0 208 231 30 38.8 +1.3 184 21 Logistics 1
Slide 21: Positive net fuel surcharge effect in Q3
Positive net fuel surcharge effect in Q3 QoQ change in net fuel surcharge effect • Net fuel surcharge effect = change in 60 1,000 surcharge revenue less change in fuel cost 49 $/tonne 50 900 • Effect will be negative in periods when 40 800 prices rise, and vice versa 700 30 • Fuel surcharges lag fue
Slide 22: Leverage below pre-pandemic levels on higher EBITDA and lower net debt
Leverage below pre-pandemic levels on higher EBITDA and lower net debt Total revenue, USDm Net Debt, USDm 4 063 3 909 3 884 3 646 3 427 3 418 3 695 3 100 2 968 3 041 3 027 2 958 2017 2018 2019 2020 2021 Q3-22 2017 2018 2019* 2020 2021 Q3-22 YTD Adjusted EBITDA, USDm Leverage, NIBD/ Adj. EBITDA 1 040
Slide 23: Solid balance sheet and strong liquidity position
Solid balance sheet and strong liquidity position Comments Balance Sheet per end Q3-22 Debt Maturity Profile USD million USD million • Equity ratio at 38.8% Assets Equity & Liabilities 8 393 8 393 897 • Net debt decreased to USD 3bn 50 due to increased cash 3 252 • Q4-22 payments covered by cash: 66
Slide 24: Solid free cash flow used to ensure dividends, fleet renewal and acceptable leverage
Solid free cash flow used to ensure dividends, fleet renewal and acceptable leverage RESILIENT FREE CASH FLOW, UTILIZED TO …1 …REACH LONG TERM FINANCIAL PRIORITIES USD million 280 262 Pay regular dividends in line with policy 260 240 • 2021FY dividends of USD 63.5m 220 209 Maintain acceptable levera
Slide 25: Prospects
Prospects* We continue to expect the supply-demand balance in shipping to remain favorable during 2023 due to the overall global fleet situation. We continue to expect increasing light vehicle sales in 2023, despite a shift from supply driven constraints to a softening of demand. Production, invento
Slide 26: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 27: Our promise
Our promise Carbon We reduced fleet Reduce fleet CO2e intensity CO2e intensity from intensity from 2019 target 2008 to 2019 by: to 2030 by: 33.6 % 27.5 % 2000 2010 2020 2030 2040 2050 2023 2025 2050 Carbon All new equipment at All owned vessels All our energy ambition terminals and yards equipped fo
Slide 28: Our journey towards zero takes place every day
Our journey towards zero takes place every day Day-to-day Long-term Digitalization of fleet Advanced Bio-fouling weather management Future fuels Future vessels Future tech routing techniques solutions “Energy efficiency is the unsung hero of the energy transition” Remi Eriksen, CEO DNV 28
Slide 29: Q&A
Q&A 29
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