Slide 1: World Fuel Services Corporation 2017 Fourth Quarter & Full Year Earnings Call
World Fuel Services Corporation 2017 Fourth Quarter & Full Year Earnings Call February 22, 2018 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Caution Concerning Forward Looking Statements Certain statements made today, including comments about World Fuel's expectations regarding future plans, performance and acquisitions are forward- looking statements that are subject to a range of uncertainties and risks that could
Slide 3: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 3
Slide 4: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 4
Slide 5: Adjusted Net Income
Adjusted Net Income ($ in millions) $147.0 $17.0 $126.6 $14.3 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 5
Slide 6: Adjusted Diluted Earnings Per Share
Adjusted Diluted Earnings Per Share $2.11 $1.86 $0.25 $0.21 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 7: Consolidated Revenue
Consolidated Revenue ($ in millions) $33.7 $8.9 $7.8 $27.0 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 7
Slide 8: Volume by Segment – Aviation
Volume by Segment – Aviation (gallons in millions) 7,938 7,127 2,017 1,884 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 9: Volume by Segment – Marine
Volume by Segment – Marine (metric tons in millions) 7.6 31.4 26.5 6.1 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 10: Volume by Segment – Land
Volume by Segment – Land (gallons in millions) 5,940 1,487 1,474 5,366 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 11: Consolidated Volume
Consolidated Volume (gallons in billions) 20.8 20.9 5.4 5.1 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 12: Non-Recurring Items
Non-Recurring Items ($ in millions) Impairment charge $ 91.9 Restructuring charge $ 59.6 Tax charge $ 157 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 12
Slide 13: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) $932 $902 $225 $230 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 13
Slide 14: Gross Profit by Segment - Aviation
Gross Profit by Segment - Aviation ($ in millions) $441 $401 $102 $106 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 15: Gross Profit by Segment - Marine
Gross Profit by Segment - Marine ($ in millions) $151 $126 $35 $29 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 16: Gross Profit by Segment - Land
Gross Profit by Segment - Land ($ in millions) $366 $351 $96 $89 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved.
Slide 17: Consolidated Operating Expenses
Consolidated Operating Expenses (excluding bad debt provision) ($ in millions) Q1’18E: $188 $178 – $182 $181 Q4'16 Q4'17 Q1'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 17
Slide 18: Consolidated Income From Operations
Consolidated Income From Operations ($ in millions) $209 $215 $39 $34 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 18
Slide 19: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA ($ in millions) $292 $296 $61 $57 Q4'16 Q4'17 2016 2017 Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 19
Slide 20: Non-Operating Expenses
Non-Operating Expenses ($ in millions) $19 Q1’18E: $13 – $16 $14 Q4'16 Q4'17 Q1'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 20
Slide 21: Effective Tax Rate
Effective Tax Rate 28.8% FY’18E: Mid-20% 18.3% Q4'16 Q4'17 FY'18E Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 21
Slide 22: Balance Sheet Management
Balance Sheet Management • Total accounts receivable was $2.7 billion at quarter end o An increase of approximately $360 million year-over-year due to higher fuel prices • Operating cash flow generation of $160 million during the fourth quarter • We remain focused on maintaining a strong balance she
Slide 23: Questions & Answers
Questions & Answers Copyright © 2017 World Fuel Services Corporation. Proprietary & Confidential. All Rights Reserved. 23
Slide 24: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Q4 2016 Q4 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Revenue $7,792.1 $0.0 $7,792.1 $8,872.0 $0.2 $8,872.3 Gross Profit 222.3 3.2 225.4 229.9 0.2 230.2 Operating Expenses 198.2 (6.8) 191.4 347.2 (156.4)
Slide 25: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) Full Year 2016 Full Year 2017 As Reported Adjustments As Adjusted As Reported Adjustments As Adjusted Revenue $27,015.8 $0.0 $27,015.8 $33,695.5 $0.2 $33,695.7 Gross Profit 899.0 3.2 902.1 932.2 0.2 932.5 Operating Expenses 710.1 (16.8) 6