Slide 1: Fourth Quarter & Full Year 2022 Earnings Call
Fourth Quarter & Full Year 2022 Earnings Call Thursday, February 23, 2023 Copyright 2023 World Fuel Services Corporation. All Rights Reserved.
Slide 2: Caution Concerning Forward Looking Statements
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 cause World Fuel's act
Slide 3: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright 2023 World Fuel Services Corporation. All Rights Reserved. 3
Slide 4: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2023 World Fuel Services Corporation. All Rights Reserved.
Slide 5: Financial Overview
Financial Overview Adjusted fourth quarter net income and EPS Adjusted FY 2022 net Adjusted EBITDA for were income and EPS were the fourth quarter and FY 2022 were Consolidated revenue for $33.5 million $128 million FY 2022 was a record and $107 million and $59 billion and $0.54 per $2.04 per share
Slide 6: Consolidated Volume
Consolidated Volume Consolidated Consolidated Consolidated Volumes Consolidated Volumes increased 5% in Q4 increased 15% in FY 2022 vs. Q4 2021 2022 vs. FY 2021 4,575 18,331 4,336 15,982 Q4 2021 Q4 2022 FY 2021 FY 2022 (Gallons in millions) * (Gallons in millions) * * Includes gallon and gallon equi
Slide 7: Volume by Segment: Aviation
Volume by Segment Aviation Aviation Aviation Volumes increased Aviation Volumes increased 7% in Q4 2022 vs. 22% in FY 2022 Q4 2021 vs. FY 2021 1,801 7,128 1,685 5,857 Q4 2021 Q4 2022 FY 2021 FY 2022 (Gallons in millions) (Gallons in millions) Copyright 2023 World Fuel Services Corporation. All Right
Slide 8: Volume by Segment: Marine
Volume by Segment Marine Marine Marine Volumes decreased Marine Volumes increased 4% in Q4 2022 vs. 3% in FY 2022 Q4 2021 vs. FY 2021 4.9 4.7 18.4 19.1 Q4 2021 Q4 2022 FY 2021 FY 2022 (Metric tons in millions) (Metric tons in millions) Copyright 2023 World Fuel Services Corporation. All Rights Reser
Slide 9: Volume by Segment: Land
Volume by Segment Land Land Land Volumes increased Land Volumes increased 12% in Q4 2022 17% in FY 2022 vs. Q4 2021 vs. FY 2021 1,537 6,166 1,369 5,254 Q4 2021 Q4 2022 FY 2021 FY 2022 (Gallons in millions) * (Gallons in millions) * * Includes gallon and gallon equivalents Copyright 2023 World Fuel S
Slide 10: Consolidated Gross Profit
Consolidated Gross Profit ($ in millions) Consolidated Consolidated Consolidated Gross Profit Consolidated Gross Profit increased 31% in Q4 increased 38% in FY 2022 vs. Q4 2021 2022 vs. FY 2021 $1,089 $282 $789 $215 Q4 2021 Q4 2022 FY 2021 FY 2022 Copyright 2023 World Fuel Services Corporation. All
Slide 11: Gross Profit by Segment: Aviation
Gross Profit by Segment ($ in millions) Aviation Aviation Aviation Gross Profit Aviation Gross Profit was flat in Q4 2022 decreased 8% in FY vs. Q4 2021 2022 vs. FY 2021 $110 $111 $388 $357 Q4 2021 Q4 2022 FY 2021 FY 2022 Copyright 2023 World Fuel Services Corporation. All Rights Reserved. 115
Slide 12: Gross Profit by Segment: Marine
Gross Profit by Segment ($ in millions) Marine Marine Marine Gross Profit increased Marine Gross Profit increased 85% in Q4 2022 155% in FY 2022 vs. Q4 2021 vs. FY 2021 $56 $256 $30 $100 Q4 2021 Q4 2022 FY 2021 FY 2022 Copyright 2023 World Fuel Services Corporation. All Rights Reserved. 125
Slide 13: Gross Profit by Segment: Land
Gross Profit by Segment ($ in millions) Land Land Land Gross Profit increased Land Gross Profit increased 54% in Q4 2022 58% in FY 2022 vs. Q4 2021 vs. FY 2021 $116 $476 $75 $301 Q4 2021 Q4 2022 FY 2021 FY 2022 Copyright 2023 World Fuel Services Corporation. All Rights Reserved. 135
Slide 14: Driving Greater Ratability and Scale in North American Land Business
Driving Greater Ratability and Scale in North American Land Business 2021 2022 C&I / Cardlock and Retail, 62% Retail 15% World Retail Kinect 23% 32% 2021 Land World Kinect 2022 Land North Gross 21% Gross Profit America Profit North $476M C&I / $301M Cardlock America 47% C&I / Cardlock UK 20% 16% Gov
Slide 15: Total Operating Expenses and Adjusted EBITDA
Total Operating Expenses Adjusted EBITDA ($ in millions) ($ in millions) $223 Q1’23 Estimate: $200 - $205 $202 $380 $238 $107 $55 Q3 2022 Q4 2022 Q1 2023E Q4 2021 Q4 2022 FY 2021 FY 2022 Copyright 2023 World Fuel Services Corporation. All Rights Reserved. 15
Slide 16: Interest Expense and Effective Tax Rate
Interest Expense ($ in millions) Effective Tax Rate Q1’23 Estimate: $36 $36 $34 24.6% 26.0% 22.2% 20.2% Q3 2022 Q4 2022 Q1 2023E Q4 2021 Q4 2022 FY 2021 FY 2022 Copyright 2023 World Fuel Services Corporation. All Rights Reserved. 16
Slide 17: Financial Overview
Financial Overview We repurchased approximately For the full year $50 million of Generated we generated $138 million common stock and $380 million increased adjusted EBITDA of cash flow from quarterly dividend in 2022 operations by 17% during the year Copyright 2023 World Fuel Services Corporation.
Slide 18: Questions + Answers
Questions + Answers Copyright 2023 World Fuel Services Corporation. All Rights Reserved.
Slide 19: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) For the Three Months Ended December 31, 2021 For the Three Months Ended December 31, 2022 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $109.8 $0.0 $109.8 $110.6 $0.0 $110.6 Operating Exp
Slide 20: Earnings Reconciliation
Earnings Reconciliation ($ in millions except per share data) For the Twelve Months Ended December 31, 2021 For the Twelve Months Ended December 31, 2022 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $386.9 $0.8 $387.7 $357.2 $0.0 $357.2 Operating E