Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q4 2016 Earnings Presentation
19 slides from Wallenius Wilhelmsen Asa's earnings presentation, Feb 9, 2017
Slide 1: Fourth quarter 2016
> Wilh. Wilhelmsen ASA Fourth quarter 2016 Wilh.Wilhelmsen ASA 09 February 2017 Jan Eyvin Wang, President and CEO
Slide 2: Agenda and disclaimer
> Agenda • Developments during the fourth quarter • Merger update • Outlook Disclaimer This presentation contains forward-looking expectations which are subject to risk and uncertainties related to economic and market conditions in relevant markets, oil prices, currency exchange fluctuations etc. Wi
Slide 3: Group ocean volume development
> Group ocean volume development Total volumes up 7% in the fourth quarter, partly seasonal 1 000 CBM 22 000 -11% +7% 20 535 20 000 19 560 19 385 18 708 18 230 18 271 18 034 18 000 16 743 16 241 16 000 15 475 15 215 14 000 12 000 10 000 8 000 6 000 4 000 2 000 0 2-14 3-14 4-14 1-15 2-15 3-15 4-15 1-
Slide 4: Group ocean cargo segment development
> Group ocean cargo segment development Both auto and high&heavy volumes up in the fourth quarter Cargo Type per quarter, WW ASA ship operating companies*) Index 130 120 110 100 90 80 70 Auto (cbm) 60 50 H&H (cbm) 40 2008-Q1 2008-Q2 2008-Q3 2008-Q4 2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 201
Slide 5: Merger update
> Merger update On track for April completion • Merger approved by owners’ extraordinary general meetings in January. Creditor period expires end March. • Awaiting formal regulatory approvals. China and Japan pending. • Organisational structure being planned • Completing planned in April 2017 • Wall
Slide 6: Outlook
> Outlook • Market – Sentiment improving slightly – Exports out of Asia largely stable • Group tonnage – Order book of six newbuildings – Redelivery capacity ten vessels during 2017, two in 2018 – Balanced through 2017 • Political uncertainty 6
Slide 7: Prospects
> Prospects With continued rate pressure, the volume decline appears to have bottomed out and the board expects a soft volume recovery in the first half of 2017. In addition, the board expects the proposed merger and the following effects, to have long-term positive impact for the group’s competitiv
Slide 8: Fourth quarter 2016 – CFO
> Wilh. Wilhelmsen ASA Fourth quarter 2016 Wilh.Wilhelmsen ASA 09 February 2017 Benedicte B. Agerup, CFO
Slide 9: WWASA Group – Key financials
> WWASA Group – Key financials Underlying income and results improved q-o-q • Total income reported +8% q-o-q, -11% y-o-y • EBIT reported -87% q-o-q, -94% y-o-y • Negative non recurring items in Q4 2016, mainly related to additional provision anti trust • Ocean transported volumes increased by 7% •
Slide 10: WWASA Group – non recurring items
> WWASA Group – non recurring items Additional anti trust provision negatively impacting earnings USD million 80 80 1 3 3 5 75 70 65 60 31 55 50 45 43 40 0 EBITDA Q4 Anti trust Severance Pension Cost Cost EBITDA Q4 reported provision packages allocation allocation adjusted Ocean LBO 10
Slide 11: WWASA Group – Profit and Loss Q4 2016
> WWASA Group – Profit and Loss Q4 2016 Proportionate method USD million 2016 Q4 2016 Q3 2016 2015 2015 Q4 Operating income 450 418 1,751 2,095 504 Gain on sale of assets 455 29 2 Share of profits from JV's and associates 13 36 2 Total income 450 418 2,219 2,159 508 EBITDA 43 69 728 262 108 Deprecia
Slide 12: Shipping – Key financials
> WWASA Shipping – Key financials Increase in both auto and HH volumes • Total income reported +8% q-o-q, -16% y-o-y • EBIT reported -76% q-o-q, -90% y-o-y, negatively affected by non recurring items • Increase in ocean transported volumes, mainly within the auto segment • Net bunker cost stable for
Slide 13: Shipping – EBIT margin
> WWASA Shipping – EBIT margin Improved underlying EBIT margin q-o-q *) *) Q3 2015 EBIT margin -34.4%, large negative non-recurring item + Lower G&A cost base - Suboptimal cargo and trade mix + Reduced OPEX - Rate pressure + Increased volumes 13
Slide 14: Logistics – Key financials
> WWASA Logistics – Key financials Improvement in underlying results q-o-q • Total income reported +4% q-o-q, +11% y-o-y • EBIT reported -17% q-o-q, stable y-o-y • Reallocation of costs between shipping and logistics segment recorded in Q4 • Underlying results improved q-o-q 2015 2016 Logistics inco
Slide 15: WWASA Group – Financial income/(expense)
> WWASA Group – Financial income/(expense) Low net financial expenses USD million 2016 Q4 2016 Q3 2016 FY 2015 FY 2015 Q4 Net fi na nci a l i tems 7.8 5.2 18.3 (6.3) 2.5 Net i nteres t expens es (24.4) (24.7) (98.0) (91.4) (23.5) Interes t ra te deri va ti ves - unrea l i s ed 30.0 10.6 25.1 24.3 19
Slide 16: WWASA Group – Balance sheet
> WWASA Group – Balance sheet Continued strong balance sheet USD million 31.12.2016 31.12.2015 Assets Non current assets 2 708 90 % 2 925 89 % Current assets (excl liquid funds) 22 1% 24 1% Liquid funds 283 9% 349 11 % Total assets 3 013 100 % 3 299 100 % Equity & liabilities Equity 1 435 48 % 1 655
Slide 17: WWASA Group – Interest bearing debt
> WWASA Group – Interest bearing debt Balloons to be refinanced in 2018/2019 Bonds Financial lease Banks Export financing USD million 449 450 400 • Ordinary instalments of approx 350 MUSD 35 in Q4 307 300 292 • Bond maturity in November 2016 of 250 MUSD 67 financed from cash position 200 150 • Reali
Slide 18: WWASA Group – Liquidity development
> WWASA Group – Liquidity development Repayment of debt reduced liquidity USD million 460 11 440 16 420 411 14 400 105 380 360 340 3 18 320 28 300 15 283 280 0 Liquidity EBITDA*) JVs Dividend Net Capex Interest Other Other Liquidity Q3 2016 received financing and financial Q4 2016 from JV’s interest
Slide 19: Thank you!
> Thank you! www.wilhelmsenasa.com