Slide 1: Q1 2018 Quarterly presentation
May 7th 2018 Q1 2018 Quarterly presentation
Slide 2: Highlights first quarter 2018
Highlights first quarter 2018 Seasonally weak results with EBITDA adjusted of USD 128 million Underlying positive volume development, especially for high & heavy Ocean results impacted by rate reductions, reduced HMG volumes, increased bunker cost and currency movements Landbased results down due to
Slide 3: Agenda
Agenda Business update Financial performance Market and business outlook Summary and Q&A
Slide 4: Business update
Business update by Craig Jasienski
Slide 5: Underlying positive volume development offset by reduced contracted HMG volumes
Business Update Financial Performance Market and Business Outlook Summary and Q&A Underlying positive volume development offset by reduced contracted Hyundai Motor Group (HMG) volumes Volume and cargo mix development1 Comments Million CBM and % Total prorated volumes Cargo mix • Underlying positive
Slide 6: Seasonal reduction in volumes across most foundation trades
Business Update Financial Performance Market and Business Outlook Summary and Q&A Seasonal reduction in volumes across most foundation trades EU - ASIA Asia - EU Atlantic Shuttle +6% -14% +7% -13% +18% -1% 3.4 3.3 2.8 2.9 2.7 2.9 3.4 3.4 2.9 Q1 ’17 Q4 ’17 Q1 ’18 Q1 ’17 Q4 ’17 Q1 ’18 Q1 ’17 Q4 ’17 Q1
Slide 7: Positive development in net freight/CBM despite rate reductions
Business Update Financial Performance Market and Business Outlook Summary and Q&A Positive development in net freight/CBM despite rate reductions due to changes in trade and cargo mix Net freight / CBM development1) Comments Indexed to 100 per Q2 2014 105 • Net freight / CBM increased by about 1% in
Slide 8: 133 vessels operated at the end of the first quarter
Business Update Financial Performance Market and Business Outlook Summary and Q&A 133 vessels operated at the end of the first quarter Fleet development Comments # of vessels Group Fleet Short Term T/C In/Out • Wallenius Wilhelmsen operated a core fleet of 124 128 133 vessels (851K CEU), representin
Slide 9: USD 86 million of the USD 120 million synergy target confirmed
Business Update Financial Performance Market and Business Outlook Summary and Q&A USD 86 million of the USD 120 million synergy target confirmed Confirmed and realized synergy development Comments USD million 120 • At the end of the first quarter USD 86 million of the USD 120 million synergy target
Slide 10: Several key developments for landbased in the first quarter
Business Update Financial Performance Market and Business Outlook Summary and Q&A Several key developments for landbased in the first quarter Key highlights for landbased • VSA results negatively impacted by high auto inventories causing congestion and reduced operational efficiencies • Melbourne te
Slide 11: New Corporate Visual Identity and name; Wallenius Wilhelmsen ASA
Business Update Financial Performance Market and Business Outlook Summary and Q&A New Corporate Visual Identity and name; Wallenius Wilhelmsen ASA 11
Slide 12: Financial performance
Financial performance raig Jasienski by Rebekka Herlofsen
Slide 13: Consolidated results – first quarter 2018
Business update Financial Performance Market and Business Outlook Summary and Q&A Consolidated results – first quarter 2018 Proforma Comments Q1 2018 Q4 2017 Q1 20171) Total income 968 1 036 890 • Seasonally weak results with EBITDA adjusted of Operating expenses (843) (859) (747) USD 128 million, d
Slide 14: Increased bunker prices and unfavourable currency movements continue to impact results
Business update Financial Performance Market and Business Outlook Summary and Q&A Increased bunker prices and unfavourable currency movements continue to impact the results negatively Bunker price development Currency development1 USD / ton HFO Basket of currencies Indexed to 100 per Q1 2017 420 409
Slide 15: Ocean segment – first quarter 2018
Business update Financial Performance Market and Business Outlook Summary and Q&A Ocean segment – first quarter 2018 Total income and EBITDA ocean segment1, 2 Comments USD million Total income EBITDA • Total income was USD 750 million, up 4% y-o-y due to increased volumes and fuel compensation Extra
Slide 16: Landbased segment – first quarter 2018
Business update Financial Performance Market and Business Outlook Summary and Q&A Landbased segment – first quarter 2018 Total income and EBITDA landbased segment1, 2 Comments USD million Total income EBITDA • Total income was USD 232, up 25% y-o-y primarily driven by Keen Transport and the Melbourn
Slide 17: Cash flow and liquidity development – first quarter 2018
Business update Financial Performance Market and Business Outlook Summary and Q&A Cash flow and liquidity development – first quarter 2018 Cash flow and liquidity development Comments USD million • CAPEX of USD 50 million includes 125 5 • Purchase option for leased vessel (USD 26 million) 796 -50 •
Slide 18: Balance sheet review – first quarter 2018
Business update Financial Performance Market and Business Outlook Summary and Q&A Balance sheet review – first quarter 2018 Unaudited Balance Sheet 31.03.2018 Comments USD billion Assets Equity & Liabilities • Total assets of USD 7.7 billion with equity ratio of 7.7 7.7 36.3%, up from 35.8% last qua
Slide 19: The legal and financial restructuring project finalized on time
Business update Financial Performance Market and Business Outlook Summary and Q&A The legal and financial restructuring project finalized on time New legal and funding structure Comments • Legal and funding structure consistent with business unit structure in place • New USD 445 million term loan an
Slide 20: Debt maturity profile following financial and legal restructuring project
Business update Financial Performance Market and Business Outlook Summary and Q&A Debt maturity profile following financial and legal restructuring project Debt maturity profile after refinancing (per 4 April 2018) USD million 2.035 644 657 383 2018 2019 2020 2021-> Credit facilities (drawn) Bonds B
Slide 21: Market and business outlook
Market and business outlook by Craig Jasienski 21
Slide 22: Auto sales in the first quarter were up 2.6% y-o-y
Business update Financial Performance Market and Business Outlook Summary and Q&A Auto sales in the first quarter were up 2.6% y-o-y Global light vehicle (LV) sales per quarter Global LV sales per main sales region1) CAGR ’17-22 +2.6% -4.0% APAC EUR ME AF AM 10% 24.8 25.0 23.9 25.6 23.3 22.9 23.0 23
Slide 23: Auto exports in the first quarter were up 4.6% y-o-y
Business update Financial Performance Market and Business Outlook Summary and Q&A Auto exports in the first quarter were up 4.6% y-o-y Global LV export per quarter Global LV export per main sales region1) CAGR ’17-22 +4.6% -0.2% EUR APAC ME AF AM 26% 3.9 4.0 Greater China 3.7 3.7 3.7 3.7 3.7 3.8 3.8
Slide 24: Construction machinery markets remain very solid globally
Business update Financial Performance Market and Business Outlook Summary and Q&A Construction machinery markets remain very solid globally Global construction and rolling mining equipment exports1 Comments Machinery exports Machinery exports • Global construction trade continues to strengthen, with
Slide 25: Mining equipment demand continues to recover on replacement needs
Business update Financial Performance Market and Business Outlook Summary and Q&A Mining equipment demand continues to recover on replacement needs Global non-rolling mining machinery exports1 Mining machinery sales2 Machinery exports Machinery exports (Quantity avg. L12M) (Growth L3M y-o-y %) +26%
Slide 26: Signs of a tightening supply-demand balance; market rates remain distressed
Business update Financial Performance Market and Business Outlook Summary and Q&A Signs of a tightening supply-demand balance. However market rates remain distressed reflecting poorer earnings Car Carrier Fleet Orderbook1 Open Vessels and Time Charter Rates2 # vessels equal or above 4000 CEU # of ve
Slide 27: Summary and outlook
Summary and outlook by Craig Jasienski
Slide 28: Outlook
Business update Financial Performance Market and Business Outlook Summary and Q&A Outlook Positive volume development, especially for high & heavy Tonnage supply/demand balance continues to improve However, market rates remain at a depressed level Increased realization of synergies will positively i
Slide 29: Thank you!
W Wallen ius Wilhelmsen Thank you!