Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q3 2022 Earnings Presentation
30 slides from Wallenius Wilhelmsen Asa's earnings presentation, 2022
Slide 1: Wallenius Wilhelmsen ASA Q3 2022
Wallenius Wilhelmsen ASA Q3 2022
Slide 2: Highlights – Q3 2022
Highlights – Q3 2022 • Revenue and EBITDA at all-time high, improving across all segments • Solid rates and fuel surcharges, combined with continued high utilization in Shipping • Solid financial position with net debt to adj. EBITDA at 2.3x • Wenche Agerup appointed new Chief People Officer • Xavie
Slide 3: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 4: Light vehicle sales still expected to increase next year despite cooling economy
Light vehicle sales still expected to increase next year despite cooling economy and consumer sentiment LV SALES LV DEEPSEA LIGHT VEHICLE SALES OUTLOOK Million units 94 94 90 80 80 83 77 QoQ Q3-22 (unit growth) +9.8% +5.8% • China drive LV sales recovery • On the supply side we see improved 2017 201
Slide 5: Machinery exports reach another all-time high but outlook softens
Machinery exports reach another all-time high but outlook softens CONSTRUCTION MINING AGRICULTURE EQUIPMENT PRODUCER SALES OUTLOOK3 Million USD 139 146 122 111 112 97 YoY Q3-22 (unit growth) +16.4% 1 +10.0%2 +4.1% 1 92 • Declining construction activity • Steep pullback in metal prices • Further decl
Slide 6: High utilization rate expected to continue through 2023
High 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, *for vessels a
Slide 7: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 8: Shipping update
VU Gs. EE ee Shipping update if EE
Slide 9: Shipping volumes up 3% QoQ despite challenging operating environment
Shipping volumes up 3% QoQ despite challenging operating environment Shipping services volumes and cargo mix Million CBM -0.4% +3% +3% % 18 38 16.1 16.2 16 15.6 15.3 15.3 15.2 15.6 36 14.8 14.5 14.2 14 12.6 34 • Volume growth from exports out of Asia 11.9 12 32 10 9.0 30 • Net freight increased to U
Slide 10: Stable fleet development, but port congestion remains challenging
Stable fleet development, but port congestion remains challenging WalWil Fleet Port congestion 136 1 183 131 129 128 1 123 126 961 74 83 82 81 82 28 18 42 42 41 43 16 6 5 6 1 Q1-22 Q2-22 Q3-22 Q4-20 Q4-21 Q1-22 Q2-22 Q3-22 Owned Long-Term Charter Net Short-Term Charter Cold Layup Waiting days 10
Slide 11: Fleet strategy Captain Lee
Fleet strategy Captain Lee Announcement pushed back to 2023 Our first female captain, and the third female captain in Korean commercial shipping history 11
Slide 12: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 13: Logistics update
Logistics update Logistic update 13
Slide 14: Zeebrugge processing center for High and Heavy (Excavators)
Zeebrugge processing center for High and Heavy (Excavators) 14
Slide 15: Logistics volumes and revenues improve across all products
Logistics volumes and revenues improve across all products • Processing volume and accessorization up for Auto and H&H • Terminals up on strong volume in Oceania from China • Inland slightly up on stronger volume in US and Asia Auto H&H Terminals Inland Revenues (USDm) Revenues (USDm) Revenues (USDm
Slide 16: Chip shortage situation improving but still significant upside in volumes
Chip shortage situation improving but still significant upside in volumes LOGISTICS – key markets for Light Vehicles North America LV Volume Europe LV Volume 5.5 5.7 4.4 4.3 Units per quarter in millions Q3-19 Q3-22 Q3-19 Q3-22 • Semiconductor shortage hindered • Still sourcing issues leading to low
Slide 17: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 18: Sustainability targets lagging short term due to challenging operative environment
Sustainability targets lagging short term due to challenging operative environment Q2-22 Q3-22 • No serious personnel injuries but LTIF in Logistics not acceptable LTIF Shipping* • Challenging with high churn of labor 0.46 0.67 per million man-hours exposed • Total CO2 footprint increasing due to
Slide 19: The first global shipping company to adopt a fully AI-based approach to voyage optimization
The first global shipping company to adopt a fully AI-based approach to voyage optimization • Announced partnership with DeepSea Technologies in Q3 • Data-driven voyage optimization (e.g., speed and route) • Advanced AI models combining vessel model, sensor data and weather forecasts • Real-time dec
Slide 20: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 21: 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 22: All segments contributed to significant EBITDA growth QoQ and YoY
All segments contributed to significant EBITDA growth QoQ and YoY Shipping – Adj. EBITDA 1 Logistics – Adj. EBITDA Government – Adj. EBITDA 1 USDm USDm USDm +94% +35% +41% +62% +145% +204% % % % 379 30 28 400 50 30 15 30 40 279 278 280 25 24 22 300 40 21 20 30 32 10 18 8 9 195 20 10 11 200 385 268 3
Slide 23: Revenue and EBITDA at all-time high, margins boosted by fuel effects
Revenue and EBITDA at all-time high, margins boosted by fuel effects • Revenue up USD 166m QoQ +166 • Increased volume and improved 23 rates per CBM mainly driven by 5 27 -15 trade mix 75 • Fuel surcharges increased on 23 USDm 28 1 356 the higher global oil prices in previous quarter 1 190 Revenue V
Slide 24: 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 25: Cash increased by USD 242m driven by solid EBITDA and proceeds from financing
Cash increased by USD 242m driven by solid EBITDA and proceeds from financing Comments +242 • Working capital includes USD 42m -94 -6 -3 paid in civil claims and settlements -18 4 -49 17 -3 1 063 -42 434 • Net investing include vessel maintenance and various logistics 821 investments USDm • Positive
Slide 26: 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 27: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 28: 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, inventor
Slide 29: Q&A
Q&A 29
Slide 30: Thank you!
W Wallenius Wilhelmsen Thank you!