Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q1 2015 Earnings Presentation
25 slides from Wallenius Wilhelmsen Asa's earnings presentation, May 7, 2015
Slide 1: Wilh. Wilhelmsen ASA First quarter 2015
> Wilh. Wilhelmsen ASA First quarter 2015 Wilh.Wilhelmsen ASA /// May 2015 Jan Eyvin Wang, President and CEO
Slide 2: Disclaimer
> 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. Wilh. Wilhelmsen ASA group undertake no liability and make no representation
Slide 3: Main drivers in Q1
> Main drivers in Q1 Lower volumes but better result • Volumes down, driven by auto segment • Improved cargo and trade mix • Lower cost base, including bunker • Adjusting capacity • Gain from sale of Glovis shares 3
Slide 4: Seasonally low volumes
> Seasonally low volumes Million Cbm 22 -1% -6% 20 18 • Q1 – seasonally the 16 weakest quarter 14 12 • Volume stable year-over- 10 year 8 6 • Drop related to cold 4 weather and the stink bug challenge 2 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2009 2010 2011 2012 2013 2014 2015 4 Prorated ocean volumes – WW group (10
Slide 5: Drop in auto volumes but improving cargo mix
> Drop in auto volumes but improving cargo mix High and Heavy Auto • Europe imports up • Volumes Asia to Europe flat • Oceania impacted by cargo restrictions • European exports fell back • North America volumes holding up • All other markets saw weakness Index 130 120 110 100 90 80 70 60 Auto (cbm)
Slide 6: All time high share of Foundation Trades
> All time high share of Foundation Trades BRIC leading the softness in Emerging Markets 000’Cbm Foundation Trades All Trades % Foundation Trades (Right scale) 25 000 70.0 % 20 000 65.0 % 15 000 60.0 % 10 000 55.0 % 5 000 0 50.0 % Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4
Slide 7: Tonnage
> Tonnage Adjusting capacity to demand Group Fleet Development [CEU's - Left scale] Group Lifted volumes [CBM's - Rigth scale] 1 000 000 22 000 20 000 • 3 vessels sold for green recycling 800 000 18 000 • 2 TC out • 1 newbuilding delivered 16 000 600 000 14 000 • Maintaining high fleet flexibility 1
Slide 8: Stink bug challenge
> Stink bug challenge • Close cooperation WWL/ costumers/ governmental bodies • Two approved solutions implemented • All parties better prepared for next season • Estimated WWASA impact MUSD 5 8
Slide 9: Tonnage flexibility
> Tonnage flexibility • Diversified cargo composition • Some specialized WWL equipment • Shifting trading patterns also in high and heavy 9
Slide 10: Tonnage flexibility
> Tonnage flexibility WWL EUKOR 10
Slide 11: Outlook
> Outlook Ocean • Overall car volumes to increase • High and Heavy to remain flat Tonnage • 6 more on order • Further newbuildings evaluated Logistics • Short term focus areas; Oceania and North America Anti Trust Investigation • Ongoing process • Several jurisdictions 11
Slide 12: Prospect
> Prospect Based on the market outlook, the board of WWASA expects higher auto volumes in the second quarter compared with the first quarter, while high and heavy volumes are expected to remain flat. Logistics activities are anticipated to be on par with the first quarter. 12
Slide 13: Wilh. Wilhelmsen ASA First quarter 2015
> Wilh. Wilhelmsen ASA First quarter 2015 Wilh.Wilhelmsen ASA 7th May 2015 Benedicte B. Agerup, CFO
Slide 14: WWASA Group – Key financials
> WWASA Group – Key financials Underlying EBIT up compared with previous quarter • Total income reported - 2% q-o-q, - 4% y-o-y. • EBIT reported + 28% q-o-q, + 82% y-o-y. • EBIT positively impacted by improved margins in shipping and a sales gain from sale of Hyundai Glovis shares. • WWASA’s first p
Slide 15: WWASA Group - Profit and Loss 2015
> WWASA Group - Profit and Loss 2015 Proportionate method WW ASA Group USD mill 2015 Q1 2014 Q4 2014 Q1 2014 FY Operating income 573 613 626 2 525 Gain on sale of assets 26 Share of profits from JV's and associates 9 10 11 66 Total income 609 624 637 2 592 EBITDA 136 118 91 413 Depreciation and impa
Slide 16: EBITDA adjusted for non-recurring items
> WWASA EBITDA adjusted for non-recurring items Improvement in underlying business q-o-q USD mill 200 154 150 150 135 21% 9% 120 120 118 121 116 110 104 102 101 100 91 50 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 16
Slide 17: Shipping – Key financials
> WWASA Shipping – Key financials Improved performance q-o-q • Total income reported - 8% q-o-q, - 8% y-o-y • EBIT reported + 9% q-o-q, + 60% y-o-y • Cost reductions, improved cargo and trade mix and higher utilization had a positve impact on EBIT • Stink bug issue had a negative effect on earnings,
Slide 18: Shipping – EBIT margin
> WWASA Shipping – EBIT margin Improved margins in a challenging market + Improved cargo and trade mix - Lower volumes transported + Lower operating and G&A cost - General rate pressure 18
Slide 19: Logistics – Key financials
> WWASA Logistics – Key financials Underlying EBIT in line with previous quarter • Total income reported +23% q-o-q, + 7% y-o-y. • EBIT reported + 180% q-o-q, + 98% y-o-y. • Improved contribution from WWL q-o-q, was outweighted by a slightly lower contribution from Hyundai Glovis. • Sales gain of US
Slide 20: WWASA Group – Financial income (expense)
> WWASA Group – Financial income (expense) Unrealized losses on currency hedging contracts q-o-q USD mill 2015 Q1 2014 Q4 2014 Q1 2014 FY Net fi na ncia l i tems 7.8 (2.6) 5.0 (0.5) Net i nteres t expens es (22.6) (23.1) (18.0) (91.2) Interes t ra te deri va ti ves - unrea l i s ed 1.4 (15.1) (5.6)
Slide 21: WWASA Group – Balance Sheet
> WWASA Group – Balance Sheet Strong balance sheet USD mill 31.03.2015 31.12.2014 Assets Non current assets 2 995 86 % 2 955 88 % Current assets (excl liquid funds) 61 2% 23 1% Liquid funds 408 12 % 375 11 % Total assets 3 464 100 % 3 353 100 % Equity & liabilities Equity 1 761 51 % 1 707 51 % Non c
Slide 22: Group - Committed CAPEX, incl. dry-docking
> WWASA Group - Committed CAPEX, incl. dry-docking Stable CAPEX the next two years USD mill 300 297 250 200 152 145 150 100 50 0 2015 FY 2016 FY Acc 2015-2016 • One vessel delivered 21. January 2015, Thermopylæ 22
Slide 23: WWASA Group – Liquidity development
> WWASA Group – Liquidity development Continued high liquidity buffers USD mill 520 500 44 480 68 460 34 440 46 26 21 104 420 12 408 400 380 375 360 0 Liquidity EBITDA JV’s/ Gain Proceeds Net Capex Interest Other Liquidity Q4 2014 associates from sale from sale financing Q1 2015 of assets of assets
Slide 24: WWASA Group – interest bearing debt
> WWASA Group – interest bearing debt Sound maturity profile USD mill 400 • New debt in Q1 to finance first 376 Bonds Tax leases 350 Banks Export financing 336 post panamax vessel - the Thermopylæ. 300 277 250 • Ordinary instalments of USD 200 181 20 million in Q1. 150 • Two post panamax vessels to
Slide 25: WWASA Group – Semi-annual dividend per share
> WWASA Group – Semi-annual dividend per share Dividend of NOK 1.00 per share in H1 approved by AGM NOK/share 4.0 4.0 • Dividend payment of 3.5 NOK 220 million 7. May 2015. 3.0 • Board of directors 2.5 authorized to pay 2.0 additional dividend up to 1.5 NOK 1.25 per share. 1.0 1.0 1.0 1.0 1.0 0.8 •