Slide 1: Q3 2023 Earnings Call
corp.worldkinect.com Q3 2023 Earnings Call October 26, 2023 Copyright © 2023 World Kinect Corporation. All Rights Reserved.
Slide 2: Disclaimer and Cautionary Note Regarding Forward-Looking Statements
Disclaimer and Cautionary Note Regarding Forward-Looking Statements Certain statements, including comments about World Kinect Corporation’s expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that cou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains non-GAAP financial measures (collectively, the “Non-GAAP Measures”), including adjusted income from operations, adjusted net income attributable to World Kinect, adjusted income from operations as a percentage of gross profit, adjusted diluted e
Slide 4: Business Overview
Business Overview Michael J. Kasbar Chairman & CEO Copyright © 2023 World Kinect Corporation. All Rights Reserved. 4
Slide 5: We Are Evolving our Solutions to Meet our Customers' Needs Across the Energy Product Spectrum
We Are Evolving our Solutions to Meet our Customers’ Needs Across the Energy Product Spectrum… 1980s through 2020s 2023+ Strategic Evolution Copyright © 2023 World Kinect Corporation. All Rights Reserved. 5
Slide 6: Accelerate Growth and Diversify Earnings Through Three-Pillar Strategic Framework
…and Expect to Accelerate Growth and Diversify our Earnings Across our Three Segments Through our Three-Pillar Strategic Framework Maximize Expand Our Suite of Increase Availability of Efficiencies in our Energy-Management Renewable Conventional Solutions Energy and Low- Businesses Carbon Fuels Copy
Slide 7: Upcoming Investor Day on March 13, 2024
We Look Forward to Discussing this Strategy at our Upcoming Investor Day on March 13, 2024 WKC 2024 Investor Day • March 13, 2024 • New York City & Virtual • Agenda and Link to Register to Follow • Hear directly from WKC Executives regarding our growth strategy Copyright © 2023 World Kinect Corporat
Slide 8: Financial Overview
Financial Overview Ira M. Birns Executive Vice President & CFO Copyright © 2023 World Kinect Corporation. All Rights Reserved. 8
Slide 9: Q3 2023 Financial Highlights
Q3 2023 Financial Highlights Gross Profit Net Income1 GAAP Diluted EPS 13% 19% 15% $281 million $35 million $0.58 Adj. EBITDA2 Total Volumes3 Adj. Diluted EPS2 18% 2% 13% $101 million 4.5 billion $0.58 Note: Q3 2023 information as reported as of September 30, 2023, compared to prior year’s results.
Slide 10: Segment Overview: Aviation
Segment Overview: Aviation Quarter Highlights & Q4 Outlook Volumes Gross Profit Q3 2023 Highlights versus Q3 2022: $MM • Volume increased 4% year-over-year, +4% benefitting from a robust summer -3% passenger travel season. 1,920 $129.6 1,840 $125.6 • Solid working capital management has enabled us t
Slide 11: Segment Overview: Land
Segment Overview: Land Quarter Highlights & Q4 Outlook Volumes1 Gross Profit Q3 2023 Highlights versus Q3 2022: $MM • Gross profit was up 3% year over year, +2% where we saw continued growth in our +3% sustainability-related service offerings 1,515 1,546 within the quarter. $117.9 $121.2 • Similar t
Slide 12: Segment Overview: Marine
Segment Overview: Marine Quarter Highlights & Q4 Outlook Volumes Gross Profit Q3 2023 Highlights versus Q3 2022: $MM • Gross Profit was down largely due to -16% -54% lower volumes and lower average fuel 4.8 $74.8 prices, compared to the prior year period when bunker prices and market volatility were
Slide 13: Operating Expenses Below Guidance Range for Q3 2023
Operating Expenses For Q3 2023 Were Below Guidance Range for the Quarter, and Expected to Be Down Sequentially in Q4 2023 $MM Total Operating Expenses $MM Prior Guidance: Q4 2023 Guidance 2 $222 $214 - $2181 $204 $206 $208 $205 – $198 208mm Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023E Note: 1.Gu
Slide 14: Progress Toward Medium-Term Adjusted Income from Operations Margin Target
We Are Expecting Significant Progress Toward Achieving of our Medium- Term Adjusted Income from Operations Margin Target During 2024 Income from Operations as a Percentage of Gross Profit Income from Operations as % of Gross Profit (GAAP) Adjusted Income from Operations as a % of Gross Profit 1 ~30%
Slide 15: Year-over-Year Interest Expense Has Declined from 2022 Highs
Year-over-Year Interest Expense Has Declined from 2022 Highs $MM Interest Expense $MM Prior Q4 2023 Guidance 2 $36 Guidance: $34 $34 $32 $28 – 30mm1 $29 $28 – 31mm Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023E Note: 1.Guidance from Q2 2023 earnings provided on July 27, 2023. 2.Not a guarantee of
Slide 16: Strong Year-to-date Operating Cash Flow Provides Flexibility
Strong Year-to-date Operating Cash Flow Provides Flexibility… Cash Flow from Operating Activities $MM $267 $80 $44 $143 Q1 2023 Q2 2023 Q3 2023 FY23 YTD Note: 1.Numbers may not sum due to rounding. Copyright © 2023 World Kinect Corporation. All Rights Reserved. 16
Slide 17: Optimized Capital Allocation Framework Benefits Shareholders
... and Optimized Capital Allocation Framework Benefits Shareholders… Capital Allocation Framework Supports Growth With Reasonable Leverage While Rewarding Our Shareholders M&A • Long term earnings and cash flow accretive acquisitions • Opportunistic expansions Growth Attractive for Equity Holders •
Slide 18: Total Capital Returns to Shareholders
… as Evidenced by Total Capital Returns to Shareholders Total Capital Returns to Shareholders1,2 $MM $94 $87 $79 $80 $76 $68 $65 $51 $49 $50 $36 $20 $26 $29 $31 $21 $26 $16 FY18 FY19 FY20 FY21 FY22 FY23 YTD Share Repurchases Dividends Note: 1.Numbers may not sum due to rounding. 2.Capital return to
Slide 19: Guidance Summary
Guidance Summary1 Guidance As of July 27, 20232 As of Oct. 26, 2023 Period Q3 2023 Operating Expense $214 – 218mm $208 Interest Expense $28 – 30mm $29mm Operating Expense - $205 – 208mm Q4 2023 Interest Expense - $28 – 31mm FY 2023 FY23 Tax Rate ~20% 22 – 23% Note: 1.Not a guarantee of actual fu
Slide 20: Appendix
corp.worldkinect.com Appendix Copyright © 2023 World Kinect Corporation. All Rights Reserved. 20
Slide 21: Non-GAAP Reconciliation (1/3)
Non-GAAP Reconciliation (1/3) $MM For the Three Months Ended For the Three Months Ended For the Three Months Ended For the Nine Months Ended USD in Millions March 31, June 30, September 30, September 30, 2023 2022 2023 2022 2023 2022 2023 2022 Reconciliation of GAAP to Non-GAAP financial measures: N
Slide 22: Non-GAAP Reconciliation (2/3)
Non-GAAP Reconciliation (2/3) $MM, except per share data For the Three Months Ended September 30, For the Nine Months Ended September 30, $ Millions, except per share data 2023 2022 2023 2022 Net Earnings Per Net Earnings Per Net Earnings Per Net Earnings Per Income Share Income Share Income Share I
Slide 23: Non-GAAP Reconciliation (3/3)
Non-GAAP Reconciliation (3/3) $MM USD in Millions 2018 2019 2020 2021 2022 Net Income (loss) including noncontrolling interest 129.0 181.1 109.6 74.2 115.9 Interest expense and other financing costs, net 71.0 73.9 44.9 40.2 110.6 Provision for income taxes 55.9 56.2 52.1 25.8 29.2 Depreciation and A
Slide 24: Investor Relations Contacts
Investor Relations Contacts Ira M. Birns Executive Vice President & Chief Financial Officer Elsa Ballard Vice President of Investor Relations Investor@worldkinect.com Copyright © 2023 World Kinect Corporation. All Rights Reserved. 24