Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q4 2022 Earnings Presentation
31 slides from Wallenius Wilhelmsen Asa's earnings presentation, 2023
Slide 1: Wallenius Wilhelmsen ASA Q4 2022
Wallenius Wilhelmsen ASA Q4 2022
Slide 2: Highlights – Q4 2022
Highlights – Q4 2022 • Q4 EBITDA at all-time high, boosted by margin improvements in all segments • Full year revenue of USD 5bn and EBITDA of USD 1.5bn • Net debt to adj. EBITDA of 1.9x, well within the new <3.5x target • Proposed FY2022 dividend of USD 360m, 45% of net profit • Pia Synnerman appoi
Slide 3: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 4: Light vehicle sales still expected to increase this year despite cooling economy and consumer sentiment
Light vehicle sales still expected to increase this year despite cooling economy and consumer sentiment LV SALES LV DEEPSEA LIGHT VEHICLE SALES OUTLOOK Million units 94 94 90 80 79 84 77 QoQ Q4-22 (unit growth) +5.5% +7.3% • China reopening likely positive • On the supply side we see continued 2017
Slide 5: EV sales gain traction and China export contributes to deep sea volume growth
EV sales gain traction and China export contributes to deep sea volume growth BEV sales are increasing, and forecast is regularly adjusted up GLOBAL BATTERY ELECTRIC VEHICLE SALES OUTLOOK EXPORT FROM CHINA LV DEEPSEA VOLUME Million units Million units 34 2.5 2.5 2.4 2.3 29 2.1 25 1.8 21 1.5 16 1.2 1
Slide 6: High & Heavy exports close to all-time highs but ordering activity softening
High & Heavy exports close to all-time highs but ordering activity softening CONSTRUCTION MINING AGRICULTURE EQUIPMENT PRODUCER SALES OUTLOOK3 Billion USD 155 144 123 113 114 YoY Q4-22 (unit growth) +17.4% 1 +13.0%2 +8.8% 1 93 98 • Soft construction activity and • Metal prices well above pre- • Food
Slide 7: High utilization rate expected to continue through 2023
High utilization rate expected to continue through 2023 Increased orderbook leads to more uncertainty on supply-demand balance during 2024 ORDERBOOK BY DELIVERY YEAR UTILIZATION RATE # of vessels & percentage share of current fleet Percentage 50 48 10% 44 9% 100% GLOBAL FLEET* 40 8% 98% 94% 8% 90% 8
Slide 8: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 9: Shipping update
Shipping update _ Se
Slide 10: Shipping volumes down 2% from high Q3 levels on fewer vessels in operation
Shipping volumes down 2% from high Q3 levels on fewer vessels in operation Shipping services volumes and cargo mix Million CBM +3% -1.8% % +3% 18 38 16.1 15.6 16.1 15.8 • Lower volumes out of Asia and fewer vessels in operation 16 15.3 15.3 15.2 36 14.8 14.2 14.5 in Q4, while stable volumes from Eur
Slide 11: Cautious approach to short-term charters despite capacity needs
Cautious approach to short-term charters despite capacity needs Stable long term fleet in 2022 Port congestion remains high but improving -31% 131 129 128 1 183 126 125 1 123 961 815 83 82 81 82 83 42 42 41 43 42 6 5 6 1 0 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Owned Long-Term Charter
Slide 12: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 13: Logistics update
Logistics update
Slide 14: Logistics volumes and revenues continue improving across all products
Logistics volumes and revenues continue improving across all products • Auto saw strong growth in processing and accessorization volumes • Terminals boosted by high storage revenue and positive effects from fumigation seasonality • H&H had strong processing volumes and storage, particularly in the U
Slide 15: Chip shortage situation improving but still significant upside in auto volumes
Chip shortage situation improving but still significant upside in auto volumes LOGISTICS – key markets for Light Vehicles North America LV Volume Europe LV Volume 5.5 5.9 4.5 4.6 Units per quarter in millions Q4 2019 Q4 2022 Q4 2019 Q4 2022 • Semiconductor shortage hindered • Still sourcing issues l
Slide 16: NIO – benefitting from the full end-to-end capability of Wallenius Wilhelmsen
NIO – benefitting from the full end-to-end capability of Wallenius Wilhelmsen Factory and plants Terminals Terminals Processing centers Vessels End customers 16
Slide 17: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 18: Committed to safe and sustainable operations
Committed to safe and sustainable operations Q3-22 Q4-22 • Seafarer on chartered vessel tragically lost at sea in November • Clear improvement in logistics safety performance (LTIF) LTIF Shipping* 0.67 0.45 • Challenges remain, including high churn of labor per million man-hours exposed • Total CO
Slide 19: Orcelle Wind project received EU funding, the next step wing-sail testing
Orcelle Wind project received EU funding, the next step wing-sail testing • The project with partners secured EUR 9m in EU funding in Q4 • The concept is an important part of our decarbonization strategy • The design has the potential to reduce absolute CO2 emissions by up to 90%* • Next step is to
Slide 20: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 21: Financial highlights Q4 2022
Financial highlights Q4 2022 (USDm, unless noted) Revenue Adj. EBITDA Q3-22 Q4-22 Financial targets 1 356 1 350 488 434 Group 1 078 306 ROCE* (%) Net profit 246 ➔ 246 +8.0 13.7 +2.1 1 079 1 060 427 862 379 279 Adj. EBITDA 32% 36% Shipping margin (%) Equity ratio (%) 261 37 231 +5.8 199 30 41.8 L
Slide 22: The board proposes a USD 360m dividend on the back of a strong result in 2022
The board proposes a USD 360m dividend on the back of a strong result in 2022 FY2022 FY2021 YoY (%)* • 2022 is the strongest year for the group to date Total revenue 5,045 3,884 30% Operating expenses (3,497) (3,054) 15% • Proposed dividend reflects 45% of FY2022 profit EBITDA 1,548 830 87% and is i
Slide 23: All segments contributed to significant EBITDA growth QoQ and YoY
All segments contributed to significant EBITDA growth QoQ and YoY Shipping – Adj. EBITDA 1 Logistics – Adj. EBITDA Government – Adj. EBITDA 1 USDm USDm USDm +53% +13% +57% +27% +404% +28% % % % 500 50 40 37 15 40 36 50 427 400 379 28 30 30 40 279 278 280 40 30 300 24 22 10 32 10 20 8 9 30 200 385 30
Slide 24: EBITDA once again at all-time high, margins improving across all segments
EBITDA once again at all-time high, margins improving across all segments -6 • Revenue down USD 6m QoQ 10 • Lower volume and reduced net -15 30 freight rates in shipping driven by cargo -15 and trade mix 1 -3 USDm 1 356 -13 1 350 • Fuel surcharges maintained at a high level • Higher volumes for logi
Slide 25: Cash increased by USD 153m driven by solid EBITDA, positive WC and reversed cash collateral
Cash increased by USD 153m driven by solid EBITDA, positive WC and reversed cash collateral Comments +153 • Net CAPEX includes vessel and other 76 -22 -3 -47 9 -53 maintenance, as well as intangible -297 investments 488 1 216 -13 40 -25 • Decreased cash collateral due to 1 063 USDNOK weakening in Q4
Slide 26: Solid balance sheet and strong liquidity position
Solid balance sheet and strong liquidity position Comments Balance Sheet per end Q4-22 Debt Maturity Profile USD million USD million • Equity ratio at 41.8% Assets Equity & Liabilities 8 394 8 394 977 • Net debt decreased to USD 2.9bn due to increased cash 203 • No bond maturities until 3 508 716 2.
Slide 27: Financial targets and adjusted dividend policy clarify financial priorities
Financial targets and adjusted dividend policy clarify financial priorities Financial targets FY 2022 Return on capital employed • Existing target (ROCE) > 8% • Last twelve months adj. EBIT divided by average capital employed 13.7% • New target Leverage ratio < 3.5x • Net interest-bearing debt divid
Slide 28: Agenda
Agenda 1. Market update 2. Shipping update 3. Logistics update 4. Sustainability update 5. Financial update 6. Prospects and Q&A
Slide 29: Prospects
Prospects 2022 was an exceptional year for our shipping and terminal markets. Despite the current economic slowdown, we expect continued strong volumes and a tight market balance at least for the first part of 2023. We see more uncertainty towards the second part of 2023 and into 2024, especially du
Slide 30: Q&A
Q&A 30
Slide 31: Thank you!
W Wallenius Wilhelmsen Thank you!