Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Investor Day (November 2018)
32 slides from Wallenius Wilhelmsen Asa's investor day presentation, Nov 7, 2018
Slide 1: Digitalization and opportunities for Wallenius Wilhelmsen
Digitalization and opportunities for Wallenius Wilhelmsen Michael Hynekamp EVP and COO WW Ocean Ari Marjamaa General Manager Diana Bruel CEO Syngin Technology 7 November 2018
Slide 2: Digitalisation is about moving from data to wisdom
Digitalisation is about moving from data to wisdom
Slide 3: The supply chain is data rich, but still information poor
The supply chain is data rich, but still information poor, large upside potential, but depends on the digitalization of the supply chain Large number of potential data sources throughout the supply chain, but too little of it is used today • Unit information • Timestamps • Destination • Location • S
Slide 4: Digitalization happens at multiple layers in the organisation
Digitalization happens at multiple layers in the organisation Area of impact Generic examples of impact Examples of current efforts ○ Applications, software solutions Digital Product / Service ○ Services delivered through APIs, eg weather routing ○ Services delivered, eg Uber Freight ○ X as a servic
Slide 5: Today, the follow-up of our $80m factories are limited to daily emails
Today, the follow-up of our $80m “factories” are limited to daily emails… OUR FACTORIES: $80M VESSELS WITH $5M ANNUAL FUEL SPEND… …ARE BEING FOLLOWED-UP THROUGH DAILY EMAILS Vessel Operating value $80m range Global Measurement of energy efficiency and other KPIs are limited to daily emails • Crew re
Slide 6: On land, factories are monitored through thousands of sensors
…while on land, factories are monitored through thousands of sensors made available real-time in one single place Real-time access to thousands of sensors Transparent information for all parties Focus on exceptions Improved analysis and decision making 6
Slide 7: Thalatta
Thalatta 22945'N 195014'E 19.09.2018 03:53 (Latest) Course: 235° Speed: 13.40 kts Master 2018-10-03 23:00 y 2018-10-06 01:47 4 a x
Slide 8: Real time data is now streaming from the vessels
Real time data is now streaming from the vessels, allowing for a much better understanding of actual performance 8
Slide 9: Improved data analytics allows for better optimisation of assets and operations
Improved data analytics allows for better optimisation of assets and operations 9
Slide 10: Digital support centre as a physical location
Digital support centre as a physical location, but also available where required - Current data capture is first step towards realizing Digital Control Room • The data is now live and accessible through one common FLEET STATUS data platform Energy Efficiency • This enables us to generate Incidents a
Slide 11: Digitalization happens at multiple layers in the organisation
Digitalization happens at multiple layers in the organisation Area of impact Generic examples of impact Examples of current efforts ○ Applications, software solutions Digital Product / Service ○ Services delivered through APIs, eg weather routing ○ Services delivered, eg Uber Freight ○ X as a servic
Slide 12: WW Solutions ambition is to grow earnings by transforming to full life cycle logistics
WW Solutions ambition is to significantly grow earnings by transforming to full life cycle logistics, partly enabled by digitalization 2022+ A B C D PROTECT THE CORE NETWORK EXPANSION INTELLIGENT LOGISTICS TRANSFORMATION TO AND M&A FULL LIFECYCLE “Develop and deploy tools “Protect and grow existing
Slide 13: Syngin Technology marks our first entry into Full Life Cycle Logistics
Syngin Technology marks our first entry intro Full Life Cycle Logistics "The future of logistics lies in "I am thrilled about the acquisition of combining digital services, physical Syngin. In late 2017 we announced an assets and a deep understanding of ambitious strategy to offer "Full Life logisti
Slide 14: Syngin Technology in brief
Syngin Technology in brief Syngin Technology is a leading provider of automated logistics solutions that leverages digital marketplaces to connect fleet owners and vehicle remarketers with transportation providers, repair centers and auction houses Syngin Technology provides complete inventory manag
Slide 15: What we do: Innovate by resolving Client Needs, and empowering vendor networks
What we do: Innovate by resolving Client Needs, and empowering vendor networks WORKFLOW SOLUTIONS Digital workflow solutions that integrate supply side and demand side processes and services BUSINESS B2B MARKETPLACE INNOVATION Empower Value Creation by Connect extended ecosystems connecting data, co
Slide 16: Syngin's Unique Selling Proposition
Syngin’s Unique Selling Proposition is creating value and competitive advantage through Operator enabled Solutions Value Creation We enable operators through marketplaces, which we integrate into our Value Value clients’ workflow and opens doors into the Chain Networks workflow of entirely new ecosy
Slide 17: How we do it: Connectivity between data, funds, vendors, clients
How we do it: Connectivity between data, funds, vendors, clients and their collective work processes Client Pick up Call Syngin Technology’s trademark is its Unique Workflow location mngt Center ○ Real-time, non-linear, multidimensional integration of Repo Lot fees Transpor t vendor base application
Slide 18: Syngin's opportunity and growth business model
Syngin’s opportunity and growth business model Customer Value Chain 5 Customer Need 1 2 Marketplaces Extended Sales Channels 3 Sourcing 4 1 View entire Customer 2 ‘Snap on’ IT Workflow 3 Create Marketplaces 4 Connect Marketplaces 5 Connectedness Need Value Chain Stage & Transform clients Target oppo
Slide 19: Questions?
W Wallenius Wilhelmsen Questions?
Slide 20: Regulatory changes and IMO 2020
Regulatory changes and IMO 2020 Michael Hynekamp EVP and COO WW Ocean Roger Strevens VP, Global Sustainability 7 November 2018
Slide 21: Lean:Green sustainability strategy
Lean:Green sustainability strategy Core contention: what’s sustainable and what’s economic can and must be the same thing To pursue Lean:Green is to be a leader ○ Engaging with innovators to find new Lean:Green solutions ○ Advocacy is vital in making sustainability the norm 2
Slide 22: The big five… of the moment
The big five… of the moment Greenhouse Gas Lean:Green ○ CA may introduce new requirements At-berth air Vessel ○ Seeking novel solution emissions Recycling using battery technology Sustainability Strategy ○ Ballast system installation following DD schedule Invasive Sulphur ○ Increasing official focus
Slide 23: GHG regulatory developments
GHG regulatory developments ○ At least 50% absolute reduction by 2050 vs. 2008 ○ Deceptively urgent ○ Focus areas for regulatory development include: ○ Port scheduling optimisation – likely first order of business ○ Vessel speed reduction – many ripple effects ○ Regulatory changes not expected befor
Slide 24: Wallenius Wilhelmsen's GHG approach
Wallenius Wilhelmsen’s GHG approach Continuous Periodic Once-Off Project Bio-fouling Digitalisation Weather Routing Bulbous bow refit Fleet renewal management Operational/ OPEX Design /CAPEX 5
Slide 25: Engaging for a zero emission future
Engaging for a zero emission future Partner to find Attract innovators Engage in the Lean:Green solutions to shipping regulatory process 6
Slide 26: Vessel Recycling
Vessel Recycling ○ Wide range in recycling performance ○ Worst: horrific welfare and environmental consequences ○ WalWil: responsible recycling of vessels for many years ○ Transparency key to progress; enables informed decision-making ○ Ship Recycling Transparency Initiative (SRTI) – launching end N
Slide 27: Sulphur 2020 – Recap
Sulphur 2020 – Recap What | Fuel sulphur content drops to 0.5%, or equivalent. ECAs stay at 0.1% When | January 1st 2020 – deferral not possible Who | Applicable to all vessels, all of the time Enforcement | ‘Carriage Ban’ adopted - signals IMO’s commitment, important tool 8
Slide 28: A balanced approach to managing risks and costs
Wallenius Wilhelmsen has chosen a balanced approach which gives the best chance of managing risks and costs Commercial Technical Financial Changes in Bunker Adjustment Scrubber installations Derivative products Factor (BAF) clauses and to allow for use of and hedging to customer contracts HSFO on se
Slide 29: Increased bunker costs to be transferred to the customers
Increased bunker costs to be transferred to the customers… ○ The cost of compliance with the regulation will be linked to the new fuel most vessels will switch to ○ The cost will have to be passed on to the customers using the same mechanism as today’s BAF clauses ○ The new regulation will simply me
Slide 30: Implementation well under way in Wallenius Wilhelmsen
… and implementation well under way in Wallenius Wilhelmsen Current status for introduction of new BAF Comments Percent of volumes • Since the finalisation of the regulation, the group has been direct and open in communication with our customers that: • This change is coming • We agree with and supp
Slide 31: Wallenius Wilhelmsen will have 25 vessels with scrubbers by end of 2021
Wallenius Wilhelmsen will have 25 vessels with scrubbers by end of 2021 Development in # of scrubbers in the fleet Comments • In June 2018, Wallenius Wilhelmsen decided to initiate a program to 10 25 retrofit scrubbers on 20 vessels by the end of 2021 • In October 2018, Wallenius Wilhelmsen signed a
Slide 32: Conclusion
Conclusion Cost is unprecedented and cannot be absorbed The increased bunker cost will be passed on the (end-) customers through BAFs Wallenius Wilhelmsen has and will continue to prepare customers for the cost increase this regulation will have on their business A balanced approach gives the best c