Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q2 2019 Earnings Presentation
29 slides from Wallenius Wilhelmsen Asa's earnings presentation, Aug 21, 2019
Slide 1: Q2 and First Half 2019 Presentation
21 August 2019 Q2 and First Half 2019 Presentation
Slide 2: Highlights second quarter 2019
Highlights second quarter 2019 EBITDA of USD 211 million, showing continued positive improvement y-o-y Ocean results driven by higher net freight/CBM, more efficient operations and lower net bunker cost Ocean volume declined 8% y-o-y, driven in part by commercial priorities and in part by weaker aut
Slide 3: Agenda
Agenda Business update Financial performance Market outlook Outlook and Q&A
Slide 4: Business update
Business update by Craig Jasienski
Slide 5: Volumes declined 8% compared to same period last year
Business update Financial performance Market outlook Outlook and Q&A Volumes declined 8% compared to same period last year - High & heavy share increases due to the decline in auto volumes Volume and cargo mix development Comments Million CBM and % Auto High & heavy High & heavy share • Commercial p
Slide 6: Mixed development for the foundation trades
Business update Financial performance Market outlook Outlook and Q&A Mixed development for the foundation trades - overall volumes down y-o-y, but strong growth q-o-q in certain trades EU - ASIA Asia - EU Atlantic Shuttle -1% +20% -7% +13% -21% -4% 3.0 3.0 3.4 2.5 3.2 2.8 3.6 3.0 2.9 Q2’18 Q1’19 Q2’
Slide 7: Fleet capacity tightly managed
Business update Financial performance Market outlook Outlook and Q&A Fleet capacity tightly managed - voyage rationalization efforts continued to minimize use of tonnage Fleet development Comments # of vessels Owned Chartered Short Term T/C In/Out • Wallenius Wilhelmsen controlled a fleet of 127 ves
Slide 8: Some smaller renewals with positive rate development in Q2
Business update Financial performance Market outlook Outlook and Q&A Some smaller renewals with positive rate development in Q2 - majority of volume still remains to be renewed in the second half of 2019 Overview of 2019 contract renewals Rate changes and impact for 2019 contract renewals USD and pe
Slide 9: Positive development for net freight/CBM
Business update Financial performance Market outlook Outlook and Q&A Positive development for net freight/CBM - driven by favourable cargo mix and commercial priorities Net freight / CBM development1) Comments • Net freight/CBM increased 2% y-o-y, down 4% 44 +2% -4% compared to the unusually high le
Slide 10: Continued progress on the performance improvement program
Business update Financial performance Market outlook Outlook and Q&A Continued progress on the performance improvement program - although most of remaining improvements expected to carry a longer lead time Confirmed and realized improvements Comments USD million in annualized effect 100 • USD 65 mil
Slide 11: Getting ready for IMO 2020
Business update Financial performance Market outlook Outlook and Q&A Getting ready for IMO 2020 - well prepared for the transition, key uncertainty remains around price impact in Q4 Key risk areas Mitigating actions Risk assessment Change over to new fuel Tried and tested method involving no off-hir
Slide 12: Financial performance
Financial performance by Rebekka Herlofsen
Slide 13: Consolidated results – second quarter 2019
Business update Financial performance Market outlook Outlook and Q&A Consolidated results – second quarter 2019 Q2 2019 Q1 2019 Q2 2018 Comments Total income 1 005 1 018 1 044 • Total income was USD 1 005 million in the second Operating expenses (794) (799) (888) quarter, down 4% y-o-y due to lower
Slide 14: Ocean segment – second quarter 2019
Business update Financial performance Market outlook Outlook and Q&A Ocean segment – second quarter 2019 Total income and EBITDA ocean segment1 Comments USD million Total income EBITDA • Total income was USD 800, down 5% y-o-y as a result of lower auto volumes and reduced other operating revenue, IF
Slide 15: Landbased segment – second quarter 2019
Business update Financial performance Market outlook Outlook and Q&A Landbased segment – second quarter 2019 Total income and EBITDA landbased segment Comments USD million Total income EBITDA • Total income in the second quarter was USD 235 million, up 6% y-o-y, due to strong performance in IFRS eff
Slide 16: Consolidated results – first half year 2019
Business update Financial performance Market outlook Outlook and Q&A Consolidated results – first half year 2019 1st half 2019 1st half 2018 % change Comments Total income 2 022 2 013 1% • Total income was USD 2 022 million in the first half of Operating expenses (1 593) (1 731) -8% 2019, up 1% comp
Slide 17: Cash flow and liquidity development – second quarter 2019
Business update Financial performance Market outlook Outlook and Q&A Cash flow and liquidity development – second quarter 2019 USD million Undrawn credit facilities 5 -7 -56 280 3 -51 211 285 -119 -53 555 487 Liquidity EBITDA Δ Working cap. Taxes paid Gross CAPEX Net other Interest paid Net debt Oth
Slide 18: Strong free cash flow generation historically
Business update Financial performance Market outlook Outlook and Q&A Strong free cash flow generation historically - cash generated mainly applied towards reducing debt Free cash flow1,2 Net debt repayment (debt uptake less debt repayment) USD million USD million 150 150 105 101 100 94 100 76 83 80
Slide 19: Balance sheet review – second quarter 2019
Business update Financial performance Market outlook Outlook and Q&A Balance sheet review – second quarter 2019 Balance Sheet 30.06.2019 Comments USD billion Assets Equity & Liabilities • Total assets of USD 8.1 billion with equity ratio of 35.3%, up from 35.0% in the previous quarter 8.1 8.1 • Net
Slide 20: Market outlook
Market outlook by Craig Jasienski 20
Slide 21: Auto sales continue decline, down 4.9% y-o-y
Business update Financial performance Market outlook Outlook and Q&A Auto sales continue decline, down 4.9% y-o-y - but some improvement compared to last quarter Global light vehicle (LV) sales per quarter1,2) Regional LV sales per month1,2) Units Growth (y-o-y) -4.9% +1.9% USA (-2.4% YTD): 0% -3% 2
Slide 22: Auto exports down 3.1% y-o-y
Business update Financial performance Market outlook Outlook and Q&A Auto exports down 3.1% y-o-y - but some improvement since first quarter Global LV export per quarter Regional LV import per quarter Units Growth (y-o-y) +1.0% -3.1% +3.5% North America (-5.3% YTD): -0.6% Imports declined 7.1% in th
Slide 23: Market uncertainty increasing
Business update Financial performance Market outlook Outlook and Q&A Market uncertainty increasing - auto analysts remain positive about medium-term growth prospects Global LV forecasts Units and growth (y-o-y) Global LV sales Several factors fuel uncertainty in short and medium term: -6.5% -4.9% +0
Slide 24: High & heavy trade has weakened, but remain at high levels
Business update Financial performance Market outlook Outlook and Q&A High & heavy trade has weakened, but remain at high levels Construction Machinery Mining Machinery Agriculture Machinery Units Exports (YoY) Sales (YoY) Units Exports (YoY) 60K 40% 60% 40K 40% EXPORT1 & 40K 20% 30% 30K 20% SALES DA
Slide 25: Current markets do not justify new ordering activity
Business update Financial performance Market outlook Outlook and Q&A Current markets do not justify new ordering activity Car Carrier Fleet Orderbook Fleet and demand growth # vessels equal or above 4000 CEU Percent 15 7 Growth y-o-y 4 3 6 2 1 0 2 2018 2019 2020 2021 Demand growth Net fleet growth O
Slide 26: Brexit – marginal impact on deep-sea shipments
Business update Financial performance Market outlook Outlook and Q&A Brexit – marginal impact on deep-sea shipments UK LV sales by production origin UK LV export to outside Europe Total units 2018: 2.7 million 1000 units, sales by region, 2016-2024 S Amr 600 537 527 OC -4.2% 464 ME/Africa NA ME/Afri
Slide 27: Outlook and Q&A
Outlook and Q&A by Craig Jasienski
Slide 28: Outlook
Business update Financial performance Market outlook Outlook and Q&A Outlook Volume outlook remains uncertain due to macro picture and heightened trade tensions Gradual improvement in tonnage balance expected to continue, but with more uncertain volume outlook rate improvements may take longer to ma
Slide 29: Thank you!
W Wallen ius Wilhelmsen Thank you!