Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q4 2023 Earnings Presentation
30 slides from Wallenius Wilhelmsen Asa's earnings presentation, Feb 15, 2024
Slide 1: Wallenius Wilhelmsen ASA Q4 2023
Wallenius Wilhelmsen ASA Q4 2023
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and statements relating to the business, financial performance and results of the Group and/or industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may be identified by
Slide 3: Wallenius Wilhelmsen - Q4 2023
Wallenius Wilhelmsen - Q4 2023 Delivers a strong Q4 EBITDA of USD 454m, of which Shipping contributes USD 392m, Logistics USD 43m, and Government USD 32m Concludes several multi-year contracts with key customers at market rates Delivers a record EBITDA of USD 1,807m and a Net Profit of USD 967m for
Slide 4: FY 2023 Highlights
FY 2023 Highlights USDm except per cent, mt, and CEU1 Strong performance in all segments On journey to net zero Building a robust book of business Total revenue Logistics adj. EBITDA Greenhouse emissions Contract renewal 5,149 174 9%2 25% (5,045 / +2%) (107 / +62%) Lower CO2 intensity in Of 2023 vol
Slide 5: Financial highlights – firm cash generation and return on capital employed
Financial highlights – firm cash generation and return on capital employed LTM1 adj. EBITDA LTM Return on Capital Employed3 USDm % +18% -2% 18% +2.5 pp 2.100 16.2% 1.807 1.750 15% 13.7% 1.400 12% 1.050 98% LTM 9% cash conversion2 700 6% 350 3% 0 0% Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q4 Q2 Q4 Q2 Q4 Q2 Q4 20 21 21
Slide 6: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 6
Slide 7: Shipping delivered another solid quarter despite lower transported volumes
Shipping delivered another solid quarter despite lower transported volumes Shipping services volume and cargo mix Estimated net TCE earning/day1 and net freight rate/CBM 38 % +2% +1% 28 % 27 % 27 % 57 57 55 56 57 54 55 54 51 53 -1.9 % -2% QoQ 45 46 55 42 43 53 53 53 53 +8.0 % -2.7 % 39 39 49 48 46 +
Slide 8: Deepsea light vehicles volumes expected to grow by 7% in 2024
Deepsea light vehicles volumes expected to grow by 7% in 2024 driven by Chinese export, while H&H expected flat on historically high-level Chinese export of vehicles by destination Seaborne LV sales by exporting region H&H sales outlook1) region Million units Million units USD bn +7% -1% -1% # units
Slide 9: Development of orderbook will lead to fleet growth from 2025 and onwards
Development of orderbook will lead to fleet growth from 2025 and onwards The order book has expanded further in Q1 and into Q2 Number PCTC/PCC deliveries by yard • The order book has seen further additions in Q4 and into Historical PCC deliveries (since 2012) NB Option On order Q1 24 and now stands
Slide 10: During 2024, a significant percentage of shipping volumes are up for contract renewals
During 2024, a significant percentage of shipping volumes are up for contract renewals • We have recently announced contract renewals commencing in 2024 • Contracts renewed*: ~25% • In total we have renewed around 25% of the 23 volume • The net freight revenue generated under the same ‘23 • Rate inc
Slide 11: Preparing for the new normal: Re-routing around Cape of Good Hope
Preparing for the new normal: Re-routing around Cape of Good Hope Number of vessel equivalents idling and at port is declining, Easing congestion but avoiding the Red Sea more than offsets impacted by seasonality the positive effect Idling Port stay • The security situation in the Red Sea is a threa
Slide 12: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 12
Slide 13: Logistics services continue to grow revenue and improve underlying margin
Logistics services continue to grow revenue and improve underlying margin Still headroom in Logistics volumes relative to pre-covid Revenue & EBITDA margin • Volume reduction of 4% from prior 112 117 122 136 137 14% 15% quarter 5.1 8% 11% Auto 4.8 +6% 6% • Strong revenue with a shift to higher 3.7 3
Slide 14: Steady demand for Logistics Services in North America
The steady demand for our Logistics Services in North America is supported by domestic land-based auto trade as well as seaborne trade with Europe and Asia Logistics addressable market - total US auto throughput… …split by origin and destination1 US produced – exports -6% +6% 1.9 1.7 1.5 1.6 1.5 1.6
Slide 15: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 15
Slide 16: Committed to safe and sustainable operations
Committed to safe and sustainable operations Long-term fuel consumption Leading to a trend of reduced CO2 LTIF down, but one fatality in Q1-24 decline despite Q4’s slight increase intensity ‘000 tons Q3-23 Q4-23 CO2 emitted per tonne kilometre in gram Total CO2 emitted - ’000 tonnes3 -4% LTIF Shippi
Slide 17: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 17
Slide 18: FY 2023 Financial highlights
FY 2023 Financial highlights USDm, except per cent, per share and multiples1 Strong fundamentals Solid balance sheet Long-term value creation Revenue Net debt ROCE >8% 5,149 2,007 16% (5,045 / +2%) (2,872 / -30%) (14%) Adj. EBITDA Cash Equity ratio >35% 1,807 1,705 47% (1,528 / +18%) (1,216 / +40%)
Slide 19: Q4 2023 Financial highlights
Q4 2023 Financial highlights USDm, except per cent and multiples Q3-23 Q4-23 Financial targets * ROCE > 8% Revenue 1 311 ➔ 1 281 +2.5 16.2% -0.6 Adj. EBITDA 478 454 Equity ratio > 35% Operating 406 518 +5.1 cash flow 46.9% +1.4 Cash 1 577 1 705 Leverage ratio < 3.5x -0.8 Net debt 2 171 2 007
Slide 20: Q4 Segment performance
Q4 Segment performance USDm, unless otherwise noted Revenue Adj. EBITDA1) Comments 1 350 1 255 1 302 1 311 1 281 488 477 478 454 • Continued high activity and profitability across all segments 398 Group • Q4 is among the strongest in the group's history, despite lower 36% 37% 36% 35% 32% volumes and
Slide 21: EBITDA and revenues down from a very strong previous quarter
EBITDA and revenues down from a very strong previous quarter -30 • Revenue down USD 30m QoQ • Reduced shipping volumes, partly offset by higher net -23 7 -1 -10 freight rates 7 USDm 1 311 • Stable fuel surcharges QoQ -10 1 281 • Higher volumes and revenues in logistics services • Lower volumes and r
Slide 22: Increasing cash flow per share and solid cash conversion
Increasing cash flow per share and solid cash conversion LTM1 operating cash flow and cash conversion2 LTM Free cash flow to equity per share3 LTM operating cash flow in million USD (lhs) Cash conversion in % (rhs) LTM free cash flow to equity per share in USD 115% 2.75 111% 2.58 2.49 98% 2.36 96% 9
Slide 23: Cash on hand increased USD 128m in Q4
Cash on hand increased USD 128m in Q4, driven by solid operational performance Comments +8% 83 (18) (1) (76) 20 (55) • USD 518m in operating cash flow (145) (7) 17 • Q4 cash conversion1 of ~114% 454 (144) 1 705 • Net CAPEX items include investments related 1 577 to fleet renewal, drydock, and other
Slide 24: Robust balance sheet and strong liquidity position
Robust balance sheet and strong liquidity position Balance Sheet per end Q4-23 Debt Maturity Profile Comments USD billion USD million 719 • Equity ratio at 46.9% 657 Assets Equity & 145 617 Liabilities • Net debt declines to USD 2.0bn on debt 74 197 repayments and cash from ops 213 459 • WW ASA canc
Slide 25: The board proposes a USD $482m dividend for FY23 and a new dividend policy
The board proposes a USD $482m dividend for FY23 and a new dividend policy FY2023 dividend Q4 Results Presentation Q1 Declaration of proposed • Propose a dividend of USD 1.14 per share of FY2023 dividend FY2023, a total dividend of USD 482m, representing • 50% of net profit, the upper range of our d
Slide 26: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 26
Slide 27: Prospects
Prospects We maintain our view that we expect 2024 to be a somewhat stronger year than 2023. Given expectations of continued customer demand for space on our vessels, we foresee that the tonnage situation for RoRo carriers will remain tight in 2024 and lead to high utilization of our assets. Further
Slide 28: Save the date: Capital Markets Day
Save the date: Capital Markets Day Date: 5 June 2024 Location: Zeebrugge 28
Slide 29: Q&A
Q&A 29
Slide 30: Thank you!
W Wallenius Wilhelmsen Cth WALLENIUS WILHE Thank you!