Slide 1: Q4 2023 Earnings Call
corp.worldkinect.com Q4 2023 Earnings Call February 22, 2024 Copyright © 2024 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 We believe that the non-GAAP financial measures (collectively, the “Non-GAAP Measures”), when considered in conjunction with our financial information prepared in accordance with GAAP, are useful to investors to further aid in evaluating the ongoing financial performance
Slide 4: Business Overview
Business Overview Michael J. Kasbar Chairman & CEO Copyright © 2024 World Kinect Corporation. All Rights Reserved. 4
Slide 5: Accelerate Growth and Diversify Earnings Across Three Segments Through Three-Pillar Framework
We Expect to Accelerate Growth and Diversify our Earnings Across our Three Segments Through our Three-Pillar Strategic Framework Copyright © 2024 World Kinect Corporation. All Rights Reserved. 5
Slide 6: Upcoming Investor Day on March 13, 2024
We Look Forward to Discussing this and more at our Upcoming Investor Day on March 13, 2024 REGISTER NOW World Kinect Corporation 2024 Investor Day March 13 – 9:00 AM ET JW Marriott Essex House – New York City In-person and via webcast Copyright © 2024 World Kinect Corporation. All Rights Reserved. 6
Slide 7: Financial Overview
Financial Overview Ira M. Birns Executive Vice President & CFO Copyright © 2024 World Kinect Corporation. All Rights Reserved. 7
Slide 8: Q4 2023 Results
Q4 2023 Results Volumes1 Adjusted Gross Profit2 Gallons in millions $MM -1% -1% 4,575 4,533 $282 $280 $56 $44 1,236 1,130 $105 1,619 $116 1,537 $131 1,801 1,784 $111 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Aviation Land Marine Note: 1.Includes gallons and gallon equivalents. 2.Adjusted Gross Profit is a non
Slide 9: Full Year 2023 Results
Full Year 2023 Results Volumes1 Adjusted Gross Profit2 Gallons in millions $MM -2% +2% 18,331 18,006 $1,089 $1,106 $173 5,037 4,441 $256 $448 6,166 6,238 $476 7,128 7,328 $486 $357 FY 2022 FY 2023 FY 2022 FY 2023 Aviation Land Marine Note: 1.Includes gallons and gallon equivalents. 2.Adjusted Gross
Slide 10: Segment Overview: Aviation – Q4 2023 Highlights
Segment Overview: Aviation – Q4 2023 Highlights Volumes Gross Profit Gallons in millions $MM Q4 2023 Highlights versus Q4 -1% +19% 2022 1,801 1,784 $131 $111 The 19% increase in Gross Profit was driven primarily by our continued focus on improving returns in an elevated interest rate environment. Q4
Slide 11: Segment Overview: Aviation – FY 2023
Segment Overview: Aviation – FY 2023 Volumes Gross Profit Gallons in millions $MM +36% +3% $486 7,128 7,328 $357 FY 2022 FY 2023 FY 2022 FY 2023 Copyright © 2024 World Kinect Corporation. All Rights Reserved. 11
Slide 12: Segment Overview: Aviation - Q1 2024 Outlook
Segment Overview: Aviation - Q1 2024 Outlook Q1 2024 Outlook versus Q1 2023 Expect a year-over-year increase in Gross Profit, driven by continued focus on optimizing margins and profitability across our Aviation business. Copyright © 2024 World Kinect Corporation. All Rights Reserved. 12
Slide 13: Segment Overview: Land – Q4 2023 Highlights
Segment Overview: Land – Q4 2023 Highlights Volumes1 Adjusted Gross Profit2 Gallons in millions $MM Q4 2023 Highlights versus Q4 +5% 2022 1,619 -9% 1,537 $116 Adjusted gross profit down largely $105 from margin pressure in the US and lower contributions from the UK, partially offset by strength in o
Slide 14: Segment Overview: Land – FY 2023
Segment Overview: Land – FY 2023 Volumes1 Adjusted Gross Profit2 Gallons in millions $MM +1% -6% $476 6,166 6,238 $448 FY 2022 FY 2023 FY 2022 FY 2023 Note: 1.Includes gallons and gallon equivalents. 2.Adjusted Gross Profit is a non-GAAP financial measure. Please see the Appendix for a reconciliatio
Slide 15: Segment Overview: Land - Q1 2024 Outlook
Segment Overview: Land - Q1 2024 Outlook Q1 2024 Outlook versus Q1 2023 • Gross profit is expected to be up modestly, as commercial and industrial fuel sales are expected to rebound from weather-related weakness in Q1 2023. • Stronger commercial & industrial sales are expected to be partially offset
Slide 16: Segment Overview: Marine – Q4 2023 Highlights
Segment Overview: Marine - Q4 2023 Highlights Volumes Gross Profit Metric tons in millions $MM Q4 2023 Highlights versus Q4 -9% -21% 4.7 $56.0 2022 4.3 Primary drivers of the 21% reduction $44.0 in Gross Profit were lower volumes and bunker prices, coupled with a decline from higher volatility level
Slide 17: Segment Overview: Marine – FY 2023
Segment Overview: Marine – FY 2023 Volumes Gross Profit Metric tons in millions $MM -33% -12% $256 19.1 16.8 $173 FY 2022 FY 2023 FY 2022 FY 2023 Copyright © 2024 World Kinect Corporation. All Rights Reserved. 17
Slide 18: Segment Overview: Marine - Q1 2024 Outlook
Segment Overview: Marine - Q1 2024 Outlook Q1 2024 Outlook versus Q1 2023 • Results are expected to be flat sequentially with margins holding steady. • Expect a decline in profitability compared to the first quarter of 2023, when volatility levels remained high. Copyright © 2024 World Kinect Corpora
Slide 19: Operating Expenses Below Guidance Range, Expected Down Sequentially in Q1 2024
Operating Expenses For Q4 2023 Were Below Guidance Range for the Quarter, and are Expected to Be Down Sequentially in Q1 2024 $MM Total Adjusted Operating Expenses2 Prior $MM Guidance: Q1 2024 Guidance3 $205 - $2081 $208 $207 $205 $202 $199 – $198 203mm Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 202
Slide 20: Committed to Medium-Term Operating Margin Target
We Remain Committed to Achieving our Medium-Term Operating Margin Target established in FY22 Income from Operations as a Percentage of Gross Profit Income from Operations as % of Gross Profit (GAAP) Adjusted Income from Operations as a % of Gross Profit 1 ~30% 26% 25% 25% • Focus on adding 21% syner
Slide 21: Year-over-Year Interest Expense Has Declined from 2022 Highs
Year-over-Year Interest Expense Has Declined from 2022 Highs Interest$MM Expense $MM Prior Q1 2024 Guidance 2 Guidance: $36 $28 – 31mm1 $34 $32 $32 $30 – $29 32mm Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024E Note: 1.Guidance from Q3 2023 earnings provided on October 26, 2023. 2.Not a guarantee o
Slide 22: Strong Operating Cash Flow Provides Flexibility
Strong Operating Cash Flow Provides Flexibility Cash Flow from Operating Activities $MM $604 +96% Average $271 $297 Annual Cash Flow from $173 Operating $139 Activities FY20 FY21 FY22 FY23 Copyright © 2024 World Kinect Corporation. All Rights Reserved. 22
Slide 23: 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 24: Total Capital Returned to Shareholders
… as Evidenced by Total Capital Returned to Shareholders Total Capital Returned to Shareholders1,2 $MM $94 $94 $79 $80 $60 $68 $51 $49 $29 $31 $34 $26 FY20 FY21 FY22 FY23 Share Repurchases Dividends Note: 1.Numbers may not sum due to rounding. 2.Capital returned to shareholders through dividends and
Slide 25: Introducing 2024 Guidance Summary
Introducing 2024 Guidance Summary1 Guidance Period As of February 22, 20243 Adj. Operating Expense2 $199 – 203mm Q1 2024 Interest Expense $30 – 32mm FY 2024 Adj. Effective Tax Rate2 23 – 27% Note: 1.Not a guarantee of actual future performance. Actual performance is subject to various risks and unce
Slide 26: Upcoming Investor Day on March 13, 2024
We Look Forward to Discussing this and more at our Upcoming Investor Day on March 13, 2024 REGISTER NOW World Kinect Corporation 2024 Investor Day March 13 – 9:00 AM ET JW Marriott Essex House – New York City In-person and via webcast Copyright © 2024 World Kinect Corporation. All Rights Reserved. 2
Slide 27: Appendix
corp.worldkinect.com Appendix Copyright © 2024 World Kinect Corporation. All Rights Reserved. 27
Slide 28: Non-GAAP Reconciliation (1/4)
Non-GAAP Reconciliation (1/4) $MM For the Three Months Ended For the Three Months Ended For the Three Months Ended For the Three Months Ended For the Twelve Months Ended $ in millions March 31, June 30, September 30, December 31, December 31, 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 Reconci
Slide 29: Non-GAAP Reconciliation (2/4)
Non-GAAP Reconciliation (2/4) $MM $ in millions For the Three Months Ended December 31, 2023 For the Three Months Ended December 31, 2022 1 Land Segment Consolidated Land Segment 1 Consolidated Gross Profit Gross Profit Operating Expenses Operating Income Gross Profit Gross Profit Operating Expenses
Slide 30: Non-GAAP Reconciliation (3/4)
Non-GAAP Reconciliation (3/4) $MM, except per share data For the Three Months Ended December 31, For the Twelve Months Ended December 31, $ in 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 Shar
Slide 31: Non-GAAP Reconciliation (4/4)
Non-GAAP Reconciliation (4/4) $ in millions $MM 2020 2021 2022 2023 Reconciliation of GAAP to Non-GAAP Measures: Net Income (loss) including noncontrolling interest 109.6 74.2 115.9 53.7 Interest expense and other financing costs, net 44.9 40.2 110.6 127.7 Provision for income taxes 52.1 25.8 29.2 1
Slide 32: Investor Relations Contacts
Investor Relations Contacts Ira M. Birns Executive Vice President & Chief Financial Officer Elsa Ballard Vice President of Investor Relations & Communications Investor@worldkinect.com Copyright © 2024 World Kinect Corporation. All Rights Reserved. 32