Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Investor Presentation (March 2023)
28 slides from Wallenius Wilhelmsen Asa's investor presentation, Mar 9, 2023
Slide 1: Investor Presentation 9 March 2023
Investor Presentation 9 March 2023
Slide 2: Investment highlights
Investment highlights Global market leader in vehicle logistic segment Long-term customer base and diversified business model Strong dividend commitment and capacity Solid market fundamentals and results Goal to introduce a zero-emission service by 2027 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 ~8,875 125 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 3.4bn* • Wilh. Wilhelmsen Holding ASA and Wallenius Lines AB largest
Slide 5: Our business
Our business Factory and plants Terminals Terminals Processing centers Vessels End customers 5
Slide 6: 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 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 GLOV
Slide 10: Logistics services portfolio enable us to provide end-to-end services
Logistics services portfolio enable us to provide end-to-end services Vehicle processing High & Heavy processing Terminals Inland transportation* Vehicle processing centre Equipment processing centre Marine terminals Inbound distribution 39 sites 27 sites 8 sites 152 assets * Including freight forwa
Slide 11: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 12: Megatrend – more people moving up in the middle class will lead to increased need for mobility
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 Wilhe
Slide 13: Solid light vehicle sales growth expected, semiconductor shortage easing
Solid light vehicle sales growth expected, semiconductor shortage easing, however significant uncertainty remains Global light vehicle (“LV”) sales in million Comments Deepsea share • More people moving up in the middle Import Domestic class and increased need for mobility • Supply chain constraints
Slide 14: EV sales gain traction and China export contributes to deep sea volume growth
EV sales gain traction and China export contributes to deep sea volume growth BEV sales are increasing, and forecast is regularly adjusted up GLOBAL BATTERY ELECTRIC VEHICLE SALES OUTLOOK EXPORT FROM CHINA LV DEEPSEA VOLUME Million units Million units 34 2.5 2.5 2.4 2.3 29 2.1 25 1.8 21 1.5 16 1.2 1
Slide 15: High & Heavy exports close to all-time highs but ordering activity softening
High & Heavy exports close to all-time highs but ordering activity softening CONSTRUCTION MINING AGRICULTURE EQUIPMENT PRODUCER SALES OUTLOOK3 Billion USD 155 144 123 113 114 YoY Q4-22 (unit growth) +17.4% 1 +13.0%2 +8.8% 1 93 98 • Soft construction activity and • Metal prices well above pre- • Food
Slide 16: High utilization rate expected to continue through 2023
High utilization rate expected to continue through 2023 Increased orderbook leads to more uncertainty on supply-demand balance during 2024 ORDERBOOK BY DELIVERY YEAR UTILIZATION RATE # of vessels & percentage share of current fleet Percentage 50 48 10% 44 9% 100% GLOBAL FLEET* 40 8% 98% 94% 8% 90% 8
Slide 17: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 18: Financial highlights Q4 2022
Financial highlights Q4 2022 (USDm, unless noted) Revenue Adj. EBITDA Q3-22 Q4-22 Financial targets 1 356 1 350 488 434 Group 1 078 306 ROCE* (%) Net profit 246 ➔ 246 +8.0 13.7 +2.1 1 079 1 060 427 862 379 279 Adj. EBITDA 32% 36% Shipping margin (%) Equity ratio (%) 261 37 231 +5.8 199 30 41.8 L
Slide 19: Leverage well below pre-pandemic levels on higher EBITDA and lower net debt
Leverage well below pre-pandemic levels on higher EBITDA and lower net debt Total revenue, USDm Net Debt, USDm 5 045 3 646 3 427 3 418 4 063 2 968 3 100 2 872 3 909 3 884 3 027 2 958 2017 2018 2019 2020 2021 2022 2017 2018 2019* 2020 2021 2022 Adjusted EBITDA, USDm Leverage, NIBD/ Adj. EBITDA 1 528
Slide 20: Dividends within policy and staying within financial targets a key priority
Dividends within policy and staying within financial targets a key priority Comments Long-term financial targets FY 2022 • The financial targets sets the Return on capital employed (ROCE) > 8% 13.7% outer boundaries for the ROCE, leverage and equity ratios Leverage ratio < 3.5x 1.9x • 2022FY dividen
Slide 21: Solid balance sheet and strong liquidity position
Solid balance sheet and strong liquidity position Comments Balance Sheet per end Q4-22 Debt Maturity Profile USD million USD million • Equity ratio at 41.8% Assets Equity & Liabilities 8 394 8 394 977 • Net debt decreased to USD 2.9bn due to increased cash 203 • No bond maturities until 3 508 716 2.
Slide 22: Prospects as of Q4-22 reporting
Prospects as of Q4-22 reporting 2022 was an exceptional year for our shipping and terminal markets. Despite the current economic slowdown, we expect continued strong volumes and a tight market balance at least for the first part of 2023. We see more uncertainty towards the second part of 2023 and in
Slide 23: Agenda
Agenda 1. WAWI in brief 2. Market update 3. Financial update 4. Sustainability
Slide 24: Our promise
Our promise Carbon We reduced fleet carbon Reduce fleet carbon intensity intensity from 2008 to intensity from 2019 target 2019 by: to 2030 by: 33.6 % 27.5 % 2000 2010 2020 2030 2040 2050 2025 2050 All owned vessels equipped for All our energy will be zero-emission at berth low-carbon sources Carbon
Slide 25: Our journey towards zero takes place every day
Our journey towards zero takes place every day Energy efficiency Energy transition 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 DN
Slide 26: The energy transition to carbon-free will be a step-wise journey
The energy transition to carbon-free will be a step-wise journey 2024 Carbon-neutral start 2027 Zero-emission piloting 2030+ Zero-emission scaling
Slide 27: Strategic goal to introduce a zero-emission service by 2027
Strategic goal to introduce a zero-emission service by 2027 Introduce carbon-neutral • Offer carbon-neutral freight by 2024, enabled by biofuel service • Introduce carbon neutral service through e.g., green Strategic goal: by 2024 certificates for electricity “Offer a journey to zero Introduce zero-
Slide 28: Q&A
Q&A 28
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