Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q2 2024 Earnings Presentation
29 slides from Wallenius Wilhelmsen Asa's earnings presentation, Aug 13, 2024
Slide 1: Wallenius Wilhelmsen ASA Q2 2024
Wallenius Wilhelmsen ASA Q2 2024
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: Wallenius Wilhelmsen – Q2 2024
Wallenius Wilhelmsen – Q2 2024 Delivered Q2 EBITDA of USD 507m, which is an all-time high. All segments made solid contributions, with Government and Logistics delivering the strongest growth rates QoQ Declares H1 24 dividend of USD 0.61 per share under the new dividend policy, representing 50% of t
Slide 4: Delivering on our strategy during Q2
Delivering on our strategy during Q2 Our customers first choice in Ordered 12 methanol capable vessels shipping Growing in integrated assets and Goals Preferred logistics partner divesting non-strategic (MIRRAT) Established team, Lead by Mikael Bjørklund, Leading orchestrator with top digital/supply
Slide 5: Continued high cash conversion and strong dividend payouts to shareholders
The company continues to secure high cash conversion and strong dividend payouts to shareholders LTM1 adj. EBITDA Total dividend payouts to shareholders USDm USD/share +4.5% 1.75 2,100 1.80 1,878 1,797 1,750 1.50 H1-24 dividend 0.61 (to be paid) 1.07 1,400 1.20 (to be paid) Second tranche 1,050 92%
Slide 6: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 6
Slide 7: Shipping delivered another solid quarter on increased rates and volumes QoQ
Shipping delivered another solid quarter on increased rates and volumes QoQ Shipping services volume and cargo mix Estimated net TCE earning/day1 and net freight rate/CBM 28 % 60 25 % 25 % 59 57 57 55 56 57 54 55 54 51 53 -7.9 % YoY 56 +6% QoQ 46 53 55 53 53 15.3 15.0 43 52 15.1 15.1 14.9 50 14.4 14
Slide 8: Global car production expected down YoY while Chinese OEMs penetrate new markets
Global car production expected down YoY due to inventory, while Chinese OEMs continue to penetrate new markets Global LV sales, production and surplus/deficit in supply 12-month running Chinese vehicle exports by destination1 Units mm Units mm sales production Surplus/deficit Africa South America an
Slide 9: H&H volumes stabilizing on a lower level but expected to rebound into 2025/26
H&H volumes stabilizing on a lower level but are expected to rebound into 2025/26 Wallenius Wilhelmsen high and heavy volumes by trade (cbm)1 -19% +3% • Following some very strong years, H&H volumes has come down to ~25% of our cargo mix in H1 2024 • Volumes in H1 2024 are impacted by Red Sea disrup
Slide 10: The order book is substantial and has continued to grow
The order book is substantial and has continued to grow, but we expect the tight market to continue into 2025 Global RoRo fleet development1 Development of the global fleet utilization Million CEU 2023 2024 2025 7 +3% 112% +8% 106% 6 100% 10% 11% 5% 3% 5% 5 0% +3% 4 113 3 2 1 1 1 2 0 08 23 24E 28E 3
Slide 11: Contract renewals progressing well and in line with market sentiment
Contract renewals progressing well and in line with market sentiment Contract renewals Share of 2023 volumes 45% • We continue to make good progress in renewing contracts for 2025. The renewals are skewed towards late H2 25% • Announced a three-year contract valued at USD 195m during Q2 15% 15% • Du
Slide 12: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 12
Slide 13: Logistics services continue to grow
Logistics services continue to grow US Auto and Terminals volumes Revenue & EBITDA margin Million units • Continued volume increase, up 1.6% 122 136 137 146 146 QoQ Auto 5.1 4.8 5.0 15% +1% 14% 15% 12% 11% • Positive margin development as rates 3.7 3.7 3.8 and scope are increasing US Auto 36 37 36 4
Slide 14: MIRRAT sale reflects underlying value in Logistics
MIRRAT sale reflects underlying value in Logistics • MIRRAT terminal is considered non-strategic and a sale for USD 220m was announced in Q2 • The sale price and expected gain demonstrate the underlying values created in Logistics. • Completion of the transaction is conditional on regulatory and Por
Slide 15: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 15
Slide 16: Wallenius Wilhelmsen recognized with EcoVadis Gold
Wallenius Wilhelmsen recognized with EcoVadis Gold • Gold Medal from EcoVadis received in June 2024 • Recognition of our commitment to sustainability • It ranks us among the top 5% of companies assessed globally • Ranking places us in the top 3% of all companies in our industry 16
Slide 17: Committed to safe and sustainable operations
Committed to safe and sustainable operations LTIF1 up QoQ in Logistics, marginally better in Shipping Reduced CO2e emission intensity YoY and QoQ2 CO2e intensity target CO2 emitted per tonne kilometre in gram Q1-24 Q2-24 40 LTIF Shipping -13.0% -4.4% per million man-hours 0.22 0.21 30 exposed 20 3
Slide 18: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 18
Slide 19: Financial highlights – Q2 2024
Financial highlights – Q2 2024 USDm, except per share, per cent and multiples Q1-24 Q2-24 Financial targets * Revenue 1 255 1 359 ROCE > 8% +1.3 18.9% +0.5 Adj. EBITDA 438 507 Operating Equity ratio > 35% cash flow 402 393 -0.1 35.7% -0.8 Cash 1 853 1 641** Net debt 1 852 1 814 Leverage ra
Slide 20: Q2 Segment performance
Q2 Segment performance USDm, unless otherwise noted Revenue Adj. EBITDA1) Comments 1 302 1 311 1 281 1 255 1 359 477 478 454 507 438 • A record quarter with high activity and profitability across all Group 37% segments, despite geopolitical and operational challenges 37% 36% 35% 35% • Growth in both
Slide 21: Restatement of accounts and treatment of EUKOR option
Restatement of accounts and treatment of EUKOR option • Financial statements have been restated from 2023 • Put option for 20% non-controlling interest in EUKOR recognized as a current liability • Shareholder’s equity reduced • Other effects like removing the previously booked asset • Liability equa
Slide 22: Revenue and EBITDA up on the back of a very strong quarter
Revenue and EBITDA up on the back of a very strong quarter +105 1 • Revenue up USD 105m QoQ 18 14 4 • Volumes and net freight rates up QoQ 13 54 • Positive effect from surcharges QoQ USDm 1 359 1 255 • Increased activity in Logistics and Government services • Adj. EBITDA1) up USD 69m QoQ Revenue Vol
Slide 23: Cash on hand reduced by USD 213m in Q2, mainly due to dividends paid
Cash on hand reduced by USD 213m in Q2, mainly due to dividends paid Comments -11% (79) (35) 0 (29) 21 • Q2 operating cash flow of USD 393m, (53) 507 (144) representing cash conversion of ~77%1 (90) 1 853 • Net CAPEX items include investments related to (287) drydock, projects and other tangible ass
Slide 24: Dividend payouts in 2024 represents 100% of Q2-24 LTM free cash flow to equity
Dividend payouts in 2024 represents 100% of Q2-24 LTM free cash flow to equity LTM1 operating cash flow and cash conversion2 LTM free cash flow to equity (USD million)3 LTM operating cash flow in million USD Cash conversion in % LTM FCF to equity 860 Dividend paid/to be paid during year 801 780 740
Slide 25: The group maintains a robust balance sheet and strong liquidity position
The group maintains a robust balance sheet and strong liquidity position Balance Sheet per end Q2-24 Debt Maturity Profile Comments USD billion USD million • Equity ratio at 35.7% 663 604 • Net debt declines to USD 1.8bn on debt Assets Equity & 188 repayments and cash from ops Liabilities 219 470 •
Slide 26: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 26
Slide 27: Prospects
Prospects 2024 market balance: The RoRo shipping market is expected to remain tight in 2024 largely due to strong growth in auto exports out of Asia. This is anticipated to more than outweigh lower H&H volumes and the projected fleet growth. In addition, Logistics and Government services remain in h
Slide 28: Q+A
Q+A 28
Slide 29: Thank you!
W Wallenius Wilhelmsen Thank you!