Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q3 2015 Earnings Presentation
24 slides from Wallenius Wilhelmsen Asa's earnings presentation, Nov 11, 2015
Slide 1: Wilh. Wilhelmsen ASA Third quarter 2015
> Wilh. Wilhelmsen ASA Third quarter 2015 Wilh. Wilhelmsen ASA /// 11 November 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: Anti-trust investigation
> Anti-trust investigation WWASA makes USD 200 million provision in the third quarter • Investigation of the global car carrying industry started in September 2012 in several jurisdictions related to incidents prior to September 2012 • WWL and EUKOR have cooperated and are cooperating with respectiv
Slide 4: Decline in group volumes
> Decline in group volumes Down of 7% q-o-q and 3% y-o-y Million Cbm 22 -3% -7% 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 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 4 Prorated ocean volumes
Slide 5: Fall in both cargo segments
> Fall in both cargo segments High and Heavy Auto • Decline in all main trades • Oceania stronger and Europe slightly • Construction volumes to North America better remained strong, however weaker than first • Decline in all other trades half of the year Index Unprorated ocean volumes – WWL and EUKO
Slide 6: Renewal of Ocean Carrier Contract
> Renewal of Ocean Carrier Contract • EUKOR secured contract for 4 more years • Volumes out of Korea; - 50% in 2016 and 2017 - 40% in 2018 and 2019 • In 2014, EUKOR transported approximately 4.6 million units of which 1.7 million where on behalf of Hyundai and Kia 6
Slide 7: Making use of the tonnage flexibility
> Making use of the tonnage flexibility # Vessels Group tonnage Newbuildings Secured flexible tonnage 150 147 147 147 145 146 146 145 145 145 143 140 139 140 137 * 135 130 127 ** 125 120 115 110 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2016 * Base case - Secured capacity not inclu
Slide 8: Continued low commodity prices impact HH volumes
> Continued low commodity prices impact HH volumes Lower growth in annual Chinese car sales Light vehicle sales in key markets quarterly [M Units] CAT - Resource industries sales quarterly [MUSD] QoQ YoY 2015 FY 2016 FY 2016/ Region Q3 2015 Q2 2015 change Q3 2014 change FC FC 2015 7 6 N America 5,29
Slide 9: Outlook
> Outlook Auto • Marginal growth in mature markets • Growth in China but at lower levels • Slow in other emerging markets High and heavy • Construction to remain healthy • Mining and agricultural to remain weak Tonnage • Using tonnage flexibility to remain balanced Increased focus on synergies and c
Slide 10: Prospect
> Prospect The shipping activities in WWASA are expected to remain challenging, with added pressure on margins. Logistics activities are expected to be on par with the 2015 levels. The board will ensure a continuous focus on operational efficiency and cost- reducing initiatives. 10
Slide 11: Wilh. Wilhelmsen ASA Third quarter 2015
> Wilh. Wilhelmsen ASA Third quarter 2015 Wilh.Wilhelmsen ASA 11 November 2015 Benedicte B. Agerup, CFO
Slide 12: WWASA Group – Key financials
> WWASA Group – Key financials Provision impact shipping segment negatively in Q3 • Total income reported - 6% q-o-q, - 14% y-o-y • EBIT reported negative USD 134 million, EBIT adjusted for non-recurring items USD 68 million • Shipping segment negatively impacted by a provision of USD 200 million •
Slide 13: WWASA Group - Profit and Loss 2015
> WWASA Group - Profit and Loss 2015 Proportionate method WW ASA Group USD mill 2015 Q3 2015 Q2 2015 YTD 2014 YTD 2014 Q3 2014 FY Operating income 546 583 1 702 1 912 619 2 525 Gain on sale of assets 26 Share of profits from JV's and associates 12 14 35 56 30 66 Total income 558 596 1 763 1 968 650
Slide 14: EBITDA adjusted for non-recurring items
> WWASA EBITDA adjusted for non-recurring items Down 6% q-o-q, partly seasonal USD million 200 154 150 150 135 4% -6% 120 120 118 121 116 114 106 110 106 104 102 100 91 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 14
Slide 15: Shipping – Key financials
> WWASA Shipping – Key financials Significantly impacted by a provision in connection with anti-trust investigations • Total income reported - 7% q-o-q, - 15% y-o-y • EBIT reported negative USD 150, EBIT adjusted for non-recurring items USD 53 million • Transported volumes down 7%, decline of both a
Slide 16: Shipping – EBIT margin
> WWASA Shipping – EBIT margin Underlying margins stable q-o-q + Lower G&A cost base - Reduced BAF surcharges - Suboptimal cargo and trade mix - Continued pressure on margins 16
Slide 17: Logistics – Key financials
> WWASA Logistics – Key financials Underlying EBIT flat q-o-q • Total income reported - 4% q-o-q, - 10% y-o-y • EBIT reported + 2% q-o-q, - 18% y-o-y • Contribution from WWL logistics was on par with previous quarter • Contribution from Hyundai Glovis stable in Q3, but will be substantialy lower in
Slide 18: Group – Financial income (expense)
> WWASA Group – Financial income (expense) Unrealised losses on derivatives USD mill 2015 Q3 2015 Q2 2015 YTD 2014 YTD 2014 Q2 2014 FY Net financial items (15.9) (0.8) (8.8) 2.1 (2.4) (0.5) Net i nteres t expens es (22.0) (23.3) (67.9) (68.1) (25.4) (91.2) Interest rate derivatives - unrealis ed (15
Slide 19: Group – Balance Sheet
> WWASA Group – Balance Sheet Continued strong balance sheet USD mill 30.09.2015 30.06.2015 31.12.2014 Assets Non current assets 2 900 88 % 3 080 88 % 2 955 88 % Current assets (excl liquid funds) 24 1% 31 1% 23 1% Liquid funds 378 11 % 408 12 % 375 11 % Total assets 3 302 100 % 3 519 100 % 3 353 10
Slide 20: Group - Committed CAPEX, incl. dry-docking
> WWASA Group - Committed CAPEX, incl. dry-docking USD million 297 300 250 200 145 150 100 50 0 -50 -100 -150 -151 -200 Paid capex 2015 2016 FY Acc 2015-2016 • Capex in 2015 already paid • Capex in 2016 financed through sale / lease back with a positive cash effect 20
Slide 21: Group – Liquidity development
> WWASA Group – Liquidity development Continued high liquidity buffers USD million 460 1 10 440 11 420 408 35 400 20 378 380 172 360 127 340 320 300 280 0 Liquidity EBITDA*) JVs/ Dividend Net Capex Financial Other Liquidity Q2 2015 associates received financing cost Q3 2015 from JV’s *) Equity and a
Slide 22: Group – interest bearing debt
> WWASA Group – interest bearing debt Sound maturity profile USD million Bonds Banks Export financing 450 • Three vessels previously on UK 411 tax lease refinanced to ordinary 400 bank debt in July. 350 341 • Ordinary instalments of USD 23 300 million in Q3. 281 250 • Revolving credit facility of US
Slide 23: Group – Semi-annual dividend per share
> WWASA Group – Semi-annual dividend per share Dividend of NOK 0.50 per share in H2 2015 NOK/share 5,0 2nd half • Dividend payment of 4.75 1st half NOK 1.00 per share in 4,5 H1 2015 4,0 3,5 • Dividend payment of NOK 0.50 per share in 3,0 H2 2015 2,5 2.00 2,0 1.65 • Low dividend payment 1.50 a reflec
Slide 24: Thank you!
> Thank you! www.wilhelmsenasa.com