Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Debt Investor Presentation (August 2021)
42 slides from Wallenius Wilhelmsen Asa's debt investor presentation, Aug 18, 2021
Slide 1: Bond investor presentation
18 August 2021 Wallenius Wilhelmsen ASA Bond investor presentation Sustainable logistics for a world in motion
Slide 2: Disclaimer (I/IV)
Disclaimer (I/IV) ○ This presentation (the “Presentation”) has been prepared by Wallenius Wilhelmsen ASA (“Wallenius Wilhelmsen ASA” or the “Company”, and together with its subsidiaries the “Group”) with the assistance of Danske Bank, Norwegian Branch; DNB Markets, a part of DNB Bank ASA; Nordea Ban
Slide 3: Disclaimer (II/IV)
Disclaimer (II/IV) ○ The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Group and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and
Slide 4: Disclaimer (III/IV)
Disclaimer (III/IV) ○ Neither the Group nor the Managers have taken any actions to allow the distribution of this Presentation in any jurisdiction where action would be required for such purposes. The distribution of this Presentation and any purchase of or application/subscription for Bonds may be
Slide 5: Disclaimer (IV/IV)
Disclaimer (IV/IV) ○ The Bonds will be subject to restrictions on resale and transfer and may not be transferred or resold except as permitted under applicable securities laws (including the Securities Act) pursuant to registration or exemption therefrom. Please see the application form for further
Slide 6: Summary of risk factors
Summary of risk factors The following sets out a summary of key risks facing the Company. Please see pages 35-41 for a full Risks related to the Bonds and the Bond Issue description of the risk factors. ▪ The Bonds may not be a suitable investment for all investors ▪ Interest rate risk Risks related
Slide 7: Investment highlights
Investment highlights Global market leader in the vehicle logistics segment Diversified business model with a solid, long-term customer base Historically resilient free cash flow mainly applied towards reducing debt Solid market fundamentals driven by high economic activity after 2020 trough Long-te
Slide 8: Agenda
Agenda WAWI in brief Business update Financial update Market update Investment highlights
Slide 9: A fully integrated lifecycle service provider
WAWI in brief Business update Financial update Market update Investment highlights A fully integrated lifecycle service provider VALUE CHAIN AND PRODUCT OFFERING Logistics services - Upstream Shipping services Logistics services - Downstream 3 2 1 1 2 3 DISTRIBUTION PLANT-BASED MARINE TERMINAL OCEAN
Slide 10: Our activities are managed through Shipping, Logistics and Government
WAWI in brief Business update Financial update Market update Investment highlights Our activities are managed through Shipping, Logistics and Government SHIPPING SERVICES LOGISTICS SERVICES GOVERNMENT SERVICES Share of EBITDA* Highlights Share of EBITDA* Highlights Share of EBITDA* Highlights ▪ Main
Slide 11: Shipping services benefits from a diversified customer portfolio with long-term contracts
WAWI in brief Business update Financial update Market update Investment highlights Shipping services benefits from a diversified customer portfolio with long-term contracts CARGO SEGMENTS AUTO HIGH & HEAVY AND BREAKBULK ▪ Majority of volumes from auto ▪ High & heavy (“H&H”) and breakbulk maximize cu
Slide 12: We are the market leader and #1 operator globally within Shipping services
WAWI in brief Business update Financial update Market update Investment highlights We are the market leader and #1 operator globally within Shipping services Four decades of leading the High & Heavy space CURRENT FLEET BY OPERATOR GROUP FLEET CHARACTERISTICS Average max ramp capacity, tons 300 Capac
Slide 13: Logistics serve customers across a broad landbased services portfolio
WAWI in brief Business update Financial update Market update Investment highlights Logistics serve customers across a broad landbased services portfolio VEHICLE PROCESSING HIGH & HEAVY SERVICES TERMINAL SERVICES INLAND / SUPPLY CHAIN Vehicle Processing Centre Vehicles Processed* Equip Processing Cen
Slide 14: We believe good business is sustainable business
WAWI in brief Business update Financial update Market update Investment highlights We believe good business is sustainable business • Long history of committed and proactive approach • Transparency is key – report to rating agencies (EcoVadis and CDP) • The Sustainability Report – integral part of t
Slide 15: In 2020, we established a Science Based Target and climate objectives
WAWI in brief Business update Financial update Market update Investment highlights In 2020, we established a Science Based Target and climate objectives to guide our actions We reduced fleet carbon intensity from 2008 to 2020 by: 33.2% Science Based Target Our climate objectives 27.5% Reduction CO2e
Slide 16: Our journey towards zero takes place every day
WAWI in brief Business update Financial update Market update Investment highlights Our journey towards zero takes place every day and through engaging in future improvements Gradual and continuous reduction in emissions of our day-to-day operations and for our existing fleet DAY TO DAY BIO-FOULING M
Slide 17: Agenda
Agenda WAWI in brief Business update Financial update Market update Investment highlights
Slide 18: Highlights Q2 2021
WAWI in brief Business update Financial update Market update Investment highlights Highlights Q2 2021 ○ Underlying results are back to pre-pandemic levels in all segments ○ Strong volumes and enhanced profitability from improved cargo and trade mix ○ High & heavy cargo volumes highest since 2012 ○ A
Slide 19: Logistics had mixed development QoQ, solid cargo/service mix countered by chip shortage
WAWI in brief Business update Financial update Market update Investment highlights Logistics had mixed development QoQ, solid cargo/service mix countered by chip shortage volume impacts • H&H transportation activity in Americas increased QoQ • Break-bulk volumes in Terminals up on spill-over from co
Slide 20: Shipping volumes at pre-pandemic levels, H&H volume highest since 2012
WAWI in brief Business update Financial update Market update Investment highlights Shipping volumes at pre-pandemic levels, H&H volume highest since 2012 Shipping services volumes and cargo mix Million CBM +78% +12% % 18 17.8 17.0 40 • H&H volumes at highest level since 2012 16.7 16.6 16.2 15.5 15.6
Slide 21: Fleet capacity remains tight, reactivated vessels and final newbuild will add capacity
WAWI in brief Business update Financial update Market update Investment highlights Fleet capacity remains tight, reactivated vessels and final newbuild will continue to add capacity Fleet capacity Group fleet development in # of vessels1,2 • 5 vessels re-entered service from cold 127 126 136 127 127
Slide 22: Agenda
Agenda WAWI in brief Business update Financial update Market update Investment highlights
Slide 23: Financial highlights – Q2
WAWI in brief Business update Financial update Market update Investment highlights Financial highlights – Q2 2021 RESULTS (USDm) KEY FINANCIAL METRICS Total revenue Adjusted EBITDA ROCE (%)1 Q1-21 Q2-21 978 205 +6.5 838 3.8 Group 606 132 +3.1 104 Net profit (5) 17 757 163 623 Adj. EBITDA Shipping
Slide 24: Adj. EBITDA up 56% QoQ, solid across segments with Shipping rebound
WAWI in brief Business update Financial update Market update Investment highlights Adj. EBITDA up 56% QoQ, solid across segments with Shipping rebound being key contributor 1 4 -2 -1 26 27 • Shipping services main contributor to QoQ 6 4 improvement: 77 978 USDm • Positive volume and rate effect outw
Slide 25: Historically resilient free cash flow generation, mainly applied towards reducing debt
WAWI in brief Business update Financial update Market update Investment highlights Historically resilient free cash flow generation, mainly applied towards reducing debt Free cash flow 1 Net debt repayment (debt uptake less debt repayment) USD million USD million 220 40 30 28 200 20 178 178 180 0 -6
Slide 26: Solid balance sheet and strong liquidity position of USD 915m
WAWI in brief Business update Financial update Market update Investment highlights Solid balance sheet and strong liquidity position of USD 915m Comments Balance sheet 30.06.2021 2021-2023 Debt Maturity Profile USD billion USD million • Equity ratio at 34.5% 978 Assets Equity & Liabilities • Net deb
Slide 27: Agenda
Agenda WAWI in brief Business update Financial update Market update Investment highlights
Slide 28: Light vehicle sales continue to recover – still 6.1% below Q2 2019
WAWI in brief Business update Financial update Market update Investment highlights Light vehicle sales continue to recover – however still 6.1% below Q2 in 2019 Strong consumer confidence and incentives fuel the light vehicle recovery, chip shortage for the OEMs dampen off some sales LV SALES LV DEE
Slide 29: H&H surges to nine-year high despite supply failing to fulfil demand
WAWI in brief Business update Financial update Market update Investment highlights H&H surges to nine-year high despite supply failing to fulfil demand Still a residential/non-residential dichotomy in construction, while commodity prices at multi-year highs fuel mining and agriculture CONSTRUCTION M
Slide 30: Tight tonnage situation has led to limited recycling and increasing orderbook
WAWI in brief Business update Financial update Market update Investment highlights Tight tonnage situation has led to limited recycling and increasing orderbook New orders have a lead time of 3-4 years. Easing of current supply chain inefficiencies will add capacity Vessels in orderbook and expected
Slide 31: Agenda
Agenda WAWI in brief Business update Financial update Market update Investment highlights
Slide 32: Investment highlights
WAWI in brief Business update Financial update Market update Investment highlights Investment highlights Global market leader in the vehicle logistics segment Diversified business model with a solid, long-term customer base Historically resilient free cash flow mainly applied towards reducing debt S
Slide 33: Risk factors
A\\ Wallenius Wilhelmsen Risk factors
Slide 34: Risk factors (I/VII)
Risk factors (I/VII) An investment in the Bonds involves inherent risks. Prospective investors should carefully consider all information in this Presentation, including the risk factors set out below, before making an investment decision. This section addresses both general risks associated with the
Slide 35: Risk factors (II/VII)
Risk factors (II/VII) Risk related to change in production patterns The geographical pattern of production and sales of cars and rolling equipment may change going forward, because of, inter alia, restructuring in the industries, growing protectionism and currency concerns. A potential shift in the
Slide 36: Risk factors (III/VII)
Risk factors (III/VII) Environmental risk The activities of the Group are subject to environmental regulation pursuant to a variety of international conventions and state and municipal laws and regulations. Changes in regulations concerning emission of greenhouse gases is one such risk factor for th
Slide 37: Risk factors (IV/VII)
Risk factors (IV/VII) Financial risks related to the Group Currency risk The reporting currency for the Group is USD. The Group is exposed to currency risk on revenues and expenses incurred (transaction risk) and balance sheet items (translation risk) in currencies other than USD, including CNY, EUR
Slide 38: Risk factors (V/VII)
Risk factors (V/VII) Bunkers price risk The profitability and cash flow of the Group is influenced by the market price of bunker fuel, which is affected by numerous factors beyond the control of the Company. The price of fuel oil has historically been volatile. An increase in fuel prices may materia
Slide 39: Risk factors (VI/VII)
Risk factors (VI/VII) The regulation and reform of “benchmarks” may adversely affect the value of securities linked to or referencing such “benchmarks” unkers price risk Interest rates and indices which are deemed to be “benchmarks”, (including NIBOR) are subject of recent national and international
Slide 40: Risk factors (VII/VII)
Risk factors (VII/VII) The Bonds will be unsecured obligations and structurally subordinated to the liabilities of any of the Group's subsidiaries Generally, creditors under indebtedness and trade creditors of the Company’s subsidiaries will be entitled to payments of their claims from the assets of
Slide 41: Appendix
A\\ Wallenius Wilhelmsen Appendix
Slide 42: Financing and covenants primarily on business unit level
Financing and covenants primarily on business unit level Unit / segment Wallenius Wilhelmsen Typical covenants within the segment Limitation on ability to pledge assets Shipping, Government Logistics Minimum liquidity Minimum liquidity Current assets / current liabilities Net debt / EBITDA Loan to v
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