Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q2 2018 Earnings Presentation
31 slides from Wallenius Wilhelmsen Asa's earnings presentation, Aug 8, 2018
Slide 1: Q2 and First Half 2018 Quarterly presentation
August 8th 2018 Q2 and First Half 2018 Quarterly presentation
Slide 2: Highlights second quarter 2018
Highlights second quarter 2018 EBITDA adjusted for extraordinary items of USD 159 million Underlying positive volume development, especially for high & heavy However, ocean results impacted by lower rates, increased net bunker cost and unfavorable currency movements The newbuilding “Titus” was deliv
Slide 3: Agenda
Agenda Business update Financial performance Market and business outlook Outlook and Q&A
Slide 4: Business update
Business update by Craig Jasienski
Slide 5: The positive volume & cargo mix development continued in the quarter
Business Update Financial Performance Market and Business Outlook Outlook and Q&A The positive volume & cargo mix development continued in the quarter Volume and cargo mix development Comments Million CBM and % Total prorated volumes1 Cargo mix2 Million CBM +3% +12% % • Positive volume development p
Slide 6: Mixed volume development for the foundation trades y-o-y
Business Update Financial Performance Market and Business Outlook Outlook and Q&A Mixed volume development for the foundation trades y-o-y EU - ASIA Asia - EU Atlantic Shuttle -4% +4% +5% +18% +22% +9% 3.2 2.9 3.0 3.4 3.2 2.9 3.4 3.6 3.0 Q2 ’17 Q1 ’18 Q2 ’18 Q2 ’17 Q1 ’18 Q2 ’18 Q2 ’17 Q1 ’18 Q2 ’18
Slide 7: Flat development for Net freight / CBM in the second quarter
Business Update Financial Performance Market and Business Outlook Outlook and Q&A Flat development for Net freight / CBM in the second quarter Net freight / CBM development1) Comments • Net freight / CBM increased by about 1% in the 44 second quarter compared with the previous quarter due to changes
Slide 8: 137 vessels operated at the end of the second quarter
Business Update Financial Performance Market and Business Outlook Outlook and Q&A 137 vessels operated at the end of the second quarter Fleet development Comments # of vessels Owned Chartered Short Term T/C In/Out • Wallenius Wilhelmsen operated a core fleet of 127 vessels (873K CEU), representing a
Slide 9: Wallenius Wilhelmsen took delivery of MV Titus May 31st 2018
Business Update Financial Performance Market and Business Outlook Outlook and Q&A Wallenius Wilhelmsen took delivery of MV Titus May 31st 2018 • High Efficiency RoRo (HERO) class vessel specially designed to reduce energy consumption and emissions • First Chinese built LCTC in the WW Ocean fleet (Xi
Slide 10: USD 110 million of the USD 120 million synergy target confirmed
Business Update Financial Performance Market and Business Outlook Outlook and Q&A USD 110 million of the USD 120 million synergy target confirmed Confirmed and realized synergy development Comments USD million 110 120 • At the end of the second quarter about USD 110 million of synergy target was con
Slide 11: Acquisition of Syngin Technologies – first step into Full Life Cycle Logistics
Business Update Financial Performance Market and Business Outlook Outlook and Q&A Acquisition of Syngin Technologies – first step into Full Life Cycle Logistics Acquisition in brief • Acquisition of Syngin Technologies (Syngin) for an expected total purchase price of about USD 30 million on a cash-
Slide 12: IMO 2020 – a risk and challenge for the shipping industry
IMO 2020 – a risk and challenge for the shipping industry • Implementation of the IMO 2020 0.5% global Sulphur cap represents a challenge and risk for the shipping industry, with fuel costs expected to increase with about 50% combined with a lack of clarity around availability and quality of fuels.
Slide 13: Financial performance
Financial performance by Rebekka Herlofsen
Slide 14: Consolidated results – second quarter 2018
Business update Financial Performance Market and Business Outlook Outlook and Q&A Consolidated results – second quarter 2018 Q2 2018 Q1 2018 Q2 2017 Comments Total income 1 044 968 974 • EBITDA adjusted of USD 159 million, down 16% y- Operating expenses (888) (843) (806) o-y and up 24% q-o-q driven
Slide 15: Ocean segment – second quarter 2018
Business update Financial Performance Market and Business Outlook Outlook and Q&A Ocean segment – second quarter 2018 Total income and EBITDA ocean segment1 Comments USD million Total income EBITDA • Total income was USD 842 million, up 5% y-o-y due to increased volumes and fuel compensation Adjustm
Slide 16: Net bunker costs increased with USD 26 million y-o-y
Business update Financial Performance Market and Business Outlook Outlook and Q&A Net bunker costs increased with USD 26 million y-o-y Net bunker cost development y-o-y Comments 50 • Net bunker cost in the quarter increased by USD 26 million y-o-y driven by increased bunker prices and higher 24 bunk
Slide 17: Landbased segment – second quarter 2018
Business update Financial Performance Market and Business Outlook Outlook and Q&A Landbased segment – second quarter 2018 Total income and EBITDA landbased segment1 Comments USD million Total income EBITDA • Total income was USD 222, up 16% y-o-y primarily driven by Keen Transport and the Melbourne
Slide 18: Consolidated results – First Half Year 2018
Consolidated results – First Half Year 2018 1st half 2018 1st half 2017 % change Comments Total income 2 012 1 864 8% • Total income was USD 2 012 million in the first half of 2018, up 8% compared to the same period last year due to Operating expenses (1 731) (1 554) 11% increased revenues for ocean
Slide 19: Cash flow and liquidity development – second quarter 2018
Business update Financial Performance Market and Business Outlook Outlook and Q&A Cash flow and liquidity development – second quarter 2018 Cash flow and liquidity development Comments USD million • CAPEX of USD 56 million includes • Instalments for newbuildings (about USD 40 million) 80 156 1 • Dry
Slide 20: Balance sheet review – second quarter 2018
Business update Financial Performance Market and Business Outlook Outlook and Q&A Balance sheet review – second quarter 2018 Unaudited Balance Sheet 31.06.2018 Comments USD billion Assets Equity & Liabilities • Total assets of USD 7.5 billion with equity ratio of 37.4%, up from 36.3% last quarter •
Slide 21: Market and business outlook
Market and business outlook by Craig Jasienski 21
Slide 22: Auto sales in the second quarter were up 3.4% y-o-y
Auto sales in the second quarter were up 3.4% y-o-y Global light vehicle (LV) sales per quarter Global LV sales per main sales region1) CAGR ’18-23 +3.4% -0.6% APAC EUR ME AF AM 10% 24.8 24.9 23.8 25.6 23.3 22.9 23.0 23.7 22.9 9% 22.3 22.8 22.4 Indian Subcontinent 8% 7% East Europe 6% 5% Middle East
Slide 23: Auto exports in the second quarter were up 6.5% y-o-y
Auto exports in the second quarter were up 6.5% y-o-y Global LV export per quarter Global LV export per main sales region1) +6.5% +4.9% CAGR ’18-23 EUR APAC ME AF AM 10% 3.9 4.1 3.7 3.7 3.7 3.7 3.7 3.8 3.7 3.8 9% Greater China 3.5 3.6 8% 6% North America 5% South America 4% 3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 24: Auto tariffs: Potential impact on Wallenius Wilhelmsen
Auto tariffs: Potential impact on Wallenius Wilhelmsen • The ongoing trade tension and possibility of new tariffs for auto imports to the US represents a risk for Wallenius Wilhelmsen. • Imports to the US (from outside NAFTA) were about 3.7 million units in 2017, majority of volumes imported from Eu
Slide 25: Construction machinery markets continue to be very solid globally
Construction machinery markets continue to be very solid globally Global construction and rolling mining equipment exports1 Market commenst2 Machinery exports Machinery exports (Quantity avg. L12M) (Growth L3M y-o-y %) • Global construction machinery trade growth decelerated to 15% y-o-y, but North
Slide 26: Mining equipment demand continues to strengthen on replacement needs
Mining equipment demand continues to strengthen on replacement needs, but the geographical differences remain significant Global mining equipment deliveries and iron ore price1 Regional mining equipment deliveries Equipment deliveries Iron ore price 600 Europe 700 North America -5 % (Indexed) (USD/t
Slide 27: Agriculture machinery markets continue to be mixed
Agriculture machinery markets continue to be mixed as farm fundamentals remain under pressure Global agriculture equipment exports1 Tractor sales and registrations2 Machinery exports Machinery exports Sales/registrations (Quantity avg. L12M) (Growth L3M y-o-y %) (Growth y-o-y %) 35k 35% 30% Sales/re
Slide 28: No new order activity or open vessels were reported in the second quarter
No new order activity or open vessels were reported in the second quarter Car Carrier Fleet Orderbook Open Vessels and Time Charter Rates # vessels equal or above 4000 CEU # of vessels and USD/day TC Rate, $/day Number of vessels 24 25 000 50 45 9 20 000 40 35 15 000 30 25 12 10 000 20 15 5 000 10 2
Slide 29: Outlook and Q&A
Outlook and Q&A by Craig Jasienski
Slide 30: Outlook
Business update Financial Performance Market and Business Outlook Summary and Q&A Outlook Current positive volume and cargo mix development expected to continue, but underlying reduced HMG contractual volumes will continue to impact results Increased realization of synergies will positively impact r
Slide 31: Thank you!
W Wallen ius Wilhelmsen Thank you!