Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q4 2017 Earnings Presentation
32 slides from Wallenius Wilhelmsen Asa's earnings presentation, Feb 14, 2018
Slide 1: Q4 Presentation
Q4 Presentation February 14th 2018 Craig Jasienski, President & CEO Rebekka Glasser Herlofsen, CFO
Slide 2: Highlights fourth quarter 2017
Highlights fourth quarter 2017 EBITDA adjusted for non-recurring items of USD 182 million Results negatively impacted by increased bunker prices Strong volume growth, but less favorable trade and cargo mix Acquisition of Keen Transport Inc for USD 64 million Synergy target increased to USD 120 milli
Slide 3: Agenda
Agenda Business Update Financial Performance Market and Business Outlook Summary and Q&A 3
Slide 4: Business Update
BUSINESS UPDATE by Craig Jasienski 4
Slide 5: Strong volume development in Q4, but slight fall back in cargo mix
Business Update Financial Performance Market and Business Outlook Summary and Q&A Strong volume development in Q4, but slight fall back in cargo mix Volume1) and cargo mix2) development Million CBM and % Comments Total prorated volumes Cargo mix • Volumes up 11% q-o-q, driven by both Million CBM +14
Slide 6: Seasonal increase in volumes across all trades, both q-o-q and y-o-y
Business Update Financial Performance Market and Business Outlook Summary and Q&A Seasonal increase in volumes across all trades, both q-o-q and y-o-y EU - ASIA Asia - EU Atlantic Shuttle +17% +17% +14% +15% +10% +14% 3.4 3.3 2.9 2.9 2.9 2.9 3.4 3.1 3.0 Q4 ’16 Q3 ’17 Q4 ’17 Q4 ’16 Q3 ’17 Q4 ’17 Q4 ’
Slide 7: 132 vessels operated in the quarter, increased space charter activity
Business Update Financial Performance Market and Business Outlook Summary and Q&A 132 vessels operated in the quarter, increased space charter activity Fleet development Number of vessels Comments Group Fleet • WWL group operated a core fleet of 126 vessels (864K CEU) Short Term T/C In/Out represent
Slide 8: Negative development in net freight/CBM due to weaker cargo mix
Business Update Financial Performance Market and Business Outlook Summary and Q&A Negative development in net freight/CBM due to weaker cargo mix Net freight / CBM development1) Indexed to 100 per Q2 2014 Comments • Net freight / CBM decreased with 3.7% points in 105 the fourth quarter compared with
Slide 9: Synergy target increased to USD 120 million
Business Update Financial Performance Market and Business Outlook Summary and Q&A Synergy target increased to USD 120 million Confirmed and realized synergy development USD million Comments • Synergy target increased to USD 120 million in 120 light of strong traction on synergy realization • About U
Slide 10: Acquisition of Keen Transport closed December 7th 2017
Acquisition of Keen Transport closed December 7th 2017 Acquisition Summary • The transaction closed December 7th, with total acquisition price of USD 64 million on a cash- and debt- free basis, financed through existing facilities • Keen operates 14 High & Heavy Equipment Processing Centers (EPC's)
Slide 11: Several other network development initiatives also concluded
Business Update Financial Performance Market and Business Outlook Summary and Q&A Several other network development initiatives also concluded • Part of investment consortium to develop a logistics park in Pyoengtaek, South Korea • WWL group has committed to purchase 66ha of land when construction i
Slide 12: Financial Performance
Financial Performance by Rebekka Glasser Herlofsen 12
Slide 13: Consolidated results – fourth quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Consolidated results – fourth quarter 2017 Comments Proforma • Adjusted EBITDA was USD 182 million in the fourth Q4 2017 Q3 2017 Q4 20161) quarter, down 5% q-o-q Total income 1 036 962 917 • Extraordinary items include
Slide 14: Ocean segment – Fourth quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Ocean segment – Fourth quarter 2017 Total income and EBITDA ocean segment1, 2 USD million Comments • Ocean income was USD 832 million, up 7% compared with Total income EBITDA previous quarter due to strong volume growt
Slide 15: Landbased segment – Fourth quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Landbased segment – Fourth quarter 2017 Total income and EBITDA landbased segment1,2) USD million Comments • Adjusted income was USD 219, up 10% q-o-q Total income EBITDA • Adjusted EBITDA was USD 24 million, stable q-
Slide 16: Consolidated results – full year 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Consolidated results – full year 2017 Consolidated results – 2016 vs. 2017 USD million Comments • Total income for FY 2017 was USD 3 800 million, up Proforma FY 20171) FY 20162) % change y-o-y 6% compared with FY 2016,
Slide 17: Cash flow and liquidity development – fourth quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Cash flow and liquidity development – fourth quarter 2017 Cash flow and liquidity development USD million Comments • CAPEX includes the acquisition of Keen 177 4 Transport («Keen») for USD 64 million 820 -81 • Net fina
Slide 18: Antitrust provision increased with USD 140 million
Business Update Financial Performance Market and Business Outlook Summary and Q&A Antitrust provision increased with USD 140 million • The antitrust investigations is now drawing towards an end, and outstanding jurisdictions are likely to reach their conclusion during 2018 • WWL groups’ provision st
Slide 19: Balance sheet review – Fourth quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Balance sheet review – Fourth quarter 2017 Unaudited Balance Sheet 31.12.2017 USD billion Comments • Total assets of USD 7.7 billion with equity ratio of ASSETS EQUITY & LIABILITIES 35.8% • Net interest bearing debt of
Slide 20: Market and Business Outlook Q4
Market and Business Outlook Q4 by Craig Jasienski 20
Slide 21: The market fundamentals started to improve in 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A The market fundamentals started to improve in 2017 Auto – steady growth H&H – turning point Market balance – firmer Modest growth in auto trade Overcapacity reduced from Recovery in global H&H volumes, up around 1.5% a
Slide 22: Auto sales in the fourth quarter increased 8.9% q-o-q
Business Update Financial Performance Market and Business Outlook Summary and Q&A Auto sales in the fourth quarter increased 8.9% q-o-q Global auto sales per main sales region1,2 Comments CAGR ’17-22 APAC EUR ME AF AM • Solid development for auto sales in the fourth quarter with 8.9% 10% growth q-o-
Slide 23: Auto exports in the fourth quarter up 2.7% q-o-q
Business Update Financial Performance Market and Business Outlook Summary and Q&A Auto exports in the fourth quarter up 2.7% q-o-q Global auto export per main production region1,2 Comments CAGR ’17-22 EUR APAC ME AF AM • Total exports in the fourth quarter were up 2.7% q-o-q while 22% growing 3.6% c
Slide 24: Construction momentum still solid
Business Update Financial Performance Market and Business Outlook Summary and Q&A Construction momentum still solid Global construction and mining equipment imports1, 2 Comments Quantity Growth • Global trade volumes continue to grow strongly into all (Avg. L12M) (L3M y/y %) Quantity regions except
Slide 25: Agriculture equipment markets are still mixed
Business Update Financial Performance Market and Business Outlook Summary and Q&A Agriculture equipment markets are still mixed Tractor sales and registrations2 Comments Growth (y/y %) 2017 • The US market is finally showing signs of bottoming out with 160% 4Q17 increased sales in the fourth quarter
Slide 26: Mining equipment volumes continue to recover
Business Update Financial Performance Market and Business Outlook Summary and Q&A Mining equipment volumes continue to recover Continued gains for commodity prices and machinery Comments and highlights Global mining equipment deliveries1 and iron ore price2, 09-18 Value (Indexed) Average price (USD/
Slide 27: But mining equipment exports to key markets are still at a low level
Business Update Financial Performance Market and Business Outlook Summary and Q&A But mining equipment exports to key markets are still at a low level Solid equipment growth to all regions since the bottom.. ..but still nowhere near peak levels in most regions Deliveries mining equipment, Growth 4Q1
Slide 28: Supply and demand balance improving
Business Update Financial Performance Market and Business Outlook Summary and Q&A Supply and demand balance improving Orderbook at end of 2017 (Thousand CEU) Comments and highlights - There are still some overcapacity (from tonnage providers) -44% 399 in the market, but it has gradually been reduced
Slide 29: Quarterly fun fact: Novel solution for oil-industry cargo transit
Business Update Financial Performance Market and Business Outlook Summary and Q&A Quarterly “fun fact”: Novel solution for oil-industry cargo transit The challenge - Moving a 34-metre long pipe-shaped component used as a testing chamber for deep drilling tools in oil exploration - To be transported
Slide 30: Summary and outlook
Business Update Financial Performance Market and Business Outlook Summary and Q&A Summary and outlook SUMMARY FOR Q4 2017 OUTLOOK Strong underlying results with adjusted EBITDA at Continued pressure on rates, but market USD 182 million showing early signs of improvement Strong volume growth, but les
Slide 31: Q&A by Craig Jasienski and Rebekka Glasser Herlofsen
Q&A by Craig Jasienski and Rebekka Glasser Herlofsen 31
Slide 32: Thank you!
WALLENIUS WILHELMSEN LOGISTICS ASA Thank you!