Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q1 2025 Earnings Presentation
32 slides from Wallenius Wilhelmsen Asa's earnings presentation, May 8, 2025
Slide 1: Wallenius Wilhelmsen ASA Q1 2025
Wallenius Wilhelmsen ASA Q1 2025
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and statements relating to the business, financial performance and results of the Group, and/or the industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may be identifi
Slide 3: Delivering stability in an unstable world – strong first quarter
Delivering stability in an unstable world – strong first quarter • Increased market uncertainties linked to U.S. tariffs and port 95% fees 1 822 • Continued solid demand – secured long-term contracts with key players • Delivered strong quarter with EBITDA of USD 462m, up 5 % YoY • Concluded MIRRAT s
Slide 4: Agenda
Agenda 1. Market update 2. Business update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 4
Slide 5: US tariffs and port dues are likely to influence Shipping and Logistics
US tariffs and port dues are likely to influence Shipping and Logistics, and the long- term effects are still unclear US tariffs – higher uncertainty US port dues – higher inefficiency Estimated impact on the average light vehicle price in the US 1: Estimated impact on the average light vehicle pric
Slide 6: Significant market uncertainty from US tariffs, but S&P still expects growth
Significant market uncertainty from US tariffs, but S&P still expects growth in global deep-sea volumes Global LV sales split by origin S&P forecast of deep-sea imports into the US Regional % CAGR 25’-27’ US deep sea volumes - pre-tariff forecast Deep sea US deep sea volumes - after-tariff forecast
Slide 7: Potential increase in US production limited to ~1m light vehicles
The short/medium-term potential increase in US production is limited to ~1m light vehicles OEMs consider increasing US production Potential US production growth if utilization is stretched from 77% to a high 85% 11.3 10.2 Million light vehicles 1.1 US Production 2024 Increase at Total production (77
Slide 8: Increasing imbalance between East and West
We see a trend of increasing imbalance between East and West Development of auto volumes ex East Trade imbalance between East and West Million light vehicles China Japan South Korea Million light vehicles 13.4 12.4 2.8 2.8 9.5 +66% 8.1 8.0 4.2 2.3 10.7 6.7 2.0 4.4 2.4 1.9 9.6 3.8 3.8 4.5 3.7 6.4 5.2
Slide 9: Tariffs may reinforce the long-term trend of imbalance and inefficiency
Tariffs may reinforce the long-term trend of imbalance and inefficiency Auto demand in CEU-mile ex East1 and ex West2 Ex East Ex West Imbalance 150 +48% 100 • The imbalance between East and West has been a growing trend since COVID Billion CEU-mile 50 102 111 91 88 75 • This is due to higher exports
Slide 10: Current turmoil proves the need for an integrated supply chain partner
Current turmoil proves the need for an integrated supply chain partner Integrated supply chain partner Sources: Economist, Reuters, CNBC, WAWI analyses 10
Slide 11: Agenda
Agenda 1. Market update 2. Business update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 11
Slide 12: Q1 2025 financials: Strong group EBITDA of USD 462m
Strong group EBITDA of USD 462m growing 5% YoY Shipping Logistics Government Q1 2025 financials 970 USD million in revenues 387 USDm of Adj. EBITDA 281 USD million in revenues 37 USDm of Adj. EBITDA 107 USD million in revenues 47 USDm of Adj. EBITDA Adj. EBITDA, USDm +6% YoY +4% QoQ -20% YoY -16% Qo
Slide 13: Around 17% of Shipping revenue originates from US auto import and export
Around 17% of Shipping revenue originates from US auto import and export US Shipping exposure related to US imports and exports of auto1 US Shipping revenue, auto only - USDm 686 67 Shipping • US exports and imports of all cargo 192 accounted for ~38% of Shipping revenue in 2024 • Auto volumes accou
Slide 14: Global footprint to minimize the impact of US tariffs
We have the necessary global footprint to minimize the impact of US tariffs Terminals Vehicle Processing Centers Equipment Processing Centers Vessel voyages 2023 54 7 Terminals 1 66 Processing centers Million CBM transported Handled 2.5 million units Handled 6.3 million vehicles 2 All figures from 2
Slide 15: Shipping: Net rate at record levels in a quarter with low volumes
Shipping Net rate at record levels in a quarter with low volumes Shipping services volume and H&H share Estimated net TCE earning/day1 and net freight rate/CBM 32% 66 66 25% 25% 23% 23% 60 61 61 21% 57 57 56 57 54 55 55 54 -3.6% YoY 56 57 56 +2% QoQ 53 55 53 53 55 15.3 15.0 52 53 15.1 14.9 50 14.2 1
Slide 16: Average net rate flat QoQ and up 11% from 2024
Shipping Average net rate flat QoQ and up 11% from 2024 driven by repricing of contracts and higher volumes out of Asia QoQ net rate bridge1 YoY net rate bridge1 USD/cbm USD/cbm +3% +11% 2.3 66.4 1.1 -3.2 1.9 66.2 4.7 66.2 64.1 3.0 -1.0 59.6 Q4 ’24 AdjustmentReported Repricing Customer Trade 2025Q1
Slide 17: Continued headwinds in the H&H segment
Shipping Continued headwinds in the H&H segment but we expect a rebound from late 2025/early 2026 Wallenius Wilhelmsen High & Heavy volumes (cbm)1 -36 % • Geopolitical tensions, tariffs, fear of trade wars, and general market uncertainties had a negative impact on H&H volumes in Q1 • Signals are ind
Slide 18: Stable activity level in Logistics with EBITDA slightly down
Logistics Stable activity level in Logistics with EBITDA slightly down on product mix US Auto and Terminals volumes Revenue & EBITDA margin Million units through WalWil facilities • Auto revenues down USD 5m QoQ -2% 146 146 138 137 132 largely explained by lower activity level Auto 5.1 4.8 4.9 4.9 1
Slide 19: MIRRAT transaction is concluded
MIRRAT transaction is concluded • On May 1 MIRRAT was sold • Preliminary key figures: o Sale price: AUD 332.5m o Preliminary gain from sale of asset: USD 144m1 (including USD 10m currency hedge) o Reduced lease commitments: USD 151m 1 Difference linked to earlier indicated gain of ~USD 191m caused b
Slide 20: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 20
Slide 21: Increase in LTIF QoQ, however with no serious injuries
Increase in LTIF QoQ, however with no serious injuries LTIF1 up QoQ in Shipping and Logistics LTIF increased, but no serious injuries Target LTIF Shipping 1.12 1.02 • LTIF for both Shipping and Logistics have increased QoQ, however with no serious injuries 0.70 • Several minor incidents have led to
Slide 22: Absolute emissions are down but emissions intensity is slightly up
Absolute emissions are down but emissions intensity is slightly up YoY Higher EEOI due to imbalance between East and West CO2e intensity currently below year-end target for 20252 Tank-to-wake Well-to-tank -7.4% +1.9% 1,295 1,228 • Emissions increased QoQ due to more charter vessels in the fleet, 1,1
Slide 23: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 23
Slide 24: Financial highlights – Q1 2025
Financial highlights – Q1 2025 USDm, per cent and multiples Q1-24 Q4-24 Q1-25 YoY/QoQ Financial targets1 Revenue 1,255 1,341 1,297 ROCE > 8% +1.2 20.5% +0.5 Adj. EBITDA 438 452 462 Net profit 201 290 246 Equity ratio > 35% -2.1 Operating 34.4% -5.1 cash flow 407 413 450 Cash 1,853 1,393
Slide 25: Q1 Segment performance
Q1 Segment performance USDm, unless otherwise noted Revenue Adj. EBITDA Comments Revenues True up2 Adj. EBITDA Net true up2 EBITDA margin1 1 255 1 359 1 353 1 311 1 297 438 507 503 466 462 • Revenues slightly down QoQ largely explained by seasonality while up 3% YoY due to increased revenues from th
Slide 26: Revenues marginally down with underlying EBITDA flat QoQ
Revenues marginally down with underlying EBITDA flat QoQ 1 341 • Revenue slightly down from QoQ when correcting for the USD 30m True up4 effect in Q4 2024 -30 -13 1 311 -2 • Higher net freight rates more than offsets -15 28 1 297 lower volumes for the shipping segment -20 -3 USDm -3 • Logistic reven
Slide 27: Liquidity remains strong on solid operational performance
Liquidity remains strong on solid operational performance Comments +20% (3) (10) 2 (27) 15 (46) • Q1 operating cash flow of USD 450m, (146) 1 666 14 12 representing a solid cash conversion of 462 approximately 98%1 1 393 • Net capex relate to drydock, and other assets • Net proceeds and repayments c
Slide 28: The group maintains a strong financial position
The group maintains a strong financial position with a solid balance sheet and strong liquidity Balance Sheet per end Q1-25 Debt Maturity Profile Comments USD billion USD million • Equity ratio down from 39.5% in Q4 24 761 722 to 34.4% in Q1 25, mainly as the April Assets Equity & dividend payment w
Slide 29: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 29
Slide 30: Delivering stability in an unstable world – strong first quarter
Delivering stability in an unstable world – strong first quarter • Increased market uncertainties linked to U.S. tariffs and port fees • Q2 is expected to be stronger than Q1 • Adjusted EBITDA for 2025 expected to be in line with 2024, but the outlook is uncertain given the current market environmen
Slide 31: Q&A
Q&A 31
Slide 32: Thank you!
Thank you!