Slide 1: Second Quarter 2023 Earnings Call
corp.worldkinect.com Second Quarter 2023 Earnings Call July 27, 2023 Copyright © 2023 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 This presentation contains non-GAAP financial measures (collectively, the “Non-GAAP Measures”), including adjusted income from operations, adjusted net income attributable to World Kinect, adjusted income from operations as a percentage of gross profit, adjusted diluted e
Slide 4: Business Overview
Business Overview Michael J. Kasbar Chairman & CEO Copyright © 2023 World Kinect Corporation. All Rights Reserved. 4
Slide 5: World Fuel Services Is Now World Kinect
World Fuel Services Is Now World Kinect Reflects our future facing businesses Our new name, World Kinect, 1 anticipating and adapting to market represents our role as a bridge, dynamics… connecting our customers to the … and that we continue to evolve resources, expertise and support 2 alongside our
Slide 6: Sustainability Focused Long-Term Strategy Accelerates Products & Diversifies Earnings
Sustainability Focused Long-Term Strategy Accelerates Products & Diversifies Earnings Conventional Products Tech-Enabled Solutions Renewable Energy Grow Maximize Automate Expand Digital Drive Demand Grow Renewable Sales Returns for Efficiency Portfolio for Renewables Energy Ecosystem Improve Interna
Slide 7: Financial Overview
Financial Overview Ira M. Birns Executive Vice President & CFO Copyright © 2023 World Kinect Corporation. All Rights Reserved. 7
Slide 8: Q2 2023 Financial Highlights
Q2 2023 Financial Highlights Gross Profit Net Income1 GAAP Diluted EPS 11% 23% 23% $282 million $30 million $0.48 Adj. EBITDA2 Total Volumes3 Adj. Diluted EPS2 29% 4% 17% $99 million 4,465 million $0.48 Note: Q2 2023 information as reported as of June 30,2023 1. Net Income (loss) including Noncontro
Slide 9: Segment Overview: Aviation
Segment Overview: Aviation Quarter Highlights & Q3 Outlook Volumes Gross Profit Q2 2023 Highlights: $MM • Strong focus on driving efficiencies and +1% +143% solid returns in current elevated interest rate environment, including divesting of 1,831 1,847 $128.2 some lower-return activities • Gross pro
Slide 10: Segment Overview: Land
Segment Overview: Land Quarter Highlights & Q3 Outlook Volumes1 Gross Profit Q2 2023 Highlights: $MM • Principal drivers of year-over-year gross profit decline related to (1) our UK -2% operations which benefited from 1,532 1,508 -9% significant market volatility in 1H 2022, $122.4 and (2) a year-ov
Slide 11: Segment Overview: Marine
Segment Overview: Marine Quarter Highlights & Q3 Outlook Volumes1 Gross Profit Q2 2023 Highlights: $MM • Volumes down year-over-year primarily -14% -46% due to declines in activity in the 4.9 $78.2 container market • Gross profit down from record $78mm in 4.2 Q2 2022 when bunker prices were approach
Slide 12: Operating Expenses at Lower-End of Q2 2023 Guidance and Expected to be Below Q3 2022
Operating Expenses at Lower-End of Q2 2023 Guidance and Expected to be Below Q3 2022 for Upcoming Quarter... $MM Total Operating Expenses $MM Prior Guidance: Q3 2023 Guidance 2 $204 - $2081 $223 $214 – $199 $205 $198 218mm Q2 2022 Q3 2022 Q1 2023 Q2 2023A Q3 2023E Note: 1.Guidance from Q1 2023 earni
Slide 13: ... and Interest Expense Expected to be Down in Q3 2023 both Sequentially and versus Q3 2022
… and Interest Expense Expected to be Down in Q3 2023 both Sequentially and versus Q3 2022 $MM Interest Expense $MM Prior Guidance: “Flat to Q1’23”1 Q3 2023 Guidance 2 $34 $34 $32 $28 – $26 30mm Q2 2022 Q3 2022 Q1 2023 Q2 2023A Q3 2023E Note: 1.Guidance from Q1 2023 earnings provided on April 27, 20
Slide 14: Strong Year-to-date Operating Cash Flow Provides Flexibility...
Strong Year-to-date Operating Cash Flow Provides Flexibility… Cash Flow from Operating Activities $MM $186 $44 $143 Q1 2023 Q2 2023 FY23 YTD Note: 1.Numbers may not sum due to rounding. Copyright © 2023 World Kinect Corporation. All Rights Reserved. 14
Slide 15: ... and 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 16: ... as Evidenced by Total Capital Return to Shareholders
… as Evidenced by Total Capital Return to Shareholders Total Shareholder Returns1,2 $MM $94 $87 $79 $80 $67 $68 2.24mm $65 $51 $49 shares repurchased in $36 $50 June 2023 in conjunction with the $20 convertible offering $26 $29 $31 $16 $21 $17 FY18 FY19 FY20 FY21 FY22 FY23 YTD Share Repurchases Divi
Slide 17: Further Diversified Capital Structure with Recent Convertible Offering
Further Diversified Capital Structure with Recent Convertible Offering • Issued $350mm worth of 3.250% Convertible Senior $MM Notes on June 26, 2023 December 31 June 30 • Transaction diversified our 2018 2019 2020 2021 2022 2023 capital structure, while Cash $212 $186 $659 $652 $298 $294 allowing th
Slide 18: Guidance Summary
Guidance Summary1 Guidance Period Operating Expense $214 – 218mm Q3 2023 Interest Expense $28 – 30mm FY 2023 FY23 Tax Rate In line with 2022 Note: 1.Not a guarantee of actual future performance. Actual performance is subject to various risks and uncertainties, including those referenced in our 2022
Slide 19: Appendix
corp.worldkinect.com Appendix Copyright © 2023 World Kinect Corporation. All Rights Reserved. 19
Slide 20: Non-GAAP Reconciliation (1/2)
Non-GAAP Reconciliation (1/2) $MM For the Three Months Ended For the Three Months Ended For the Six Months Ended USD in Millions March 31, June 30, June 30, 2023 2022 2023 2022 2023 2022 Reconciliation of GAAP to Non-GAAP financial measures: Net Income (loss) including noncontrolling interest $22.6
Slide 21: Non-GAAP Reconciliation (2/2)
Non-GAAP Reconciliation (2/2) $MM, except per share data For the Three Months Ended June 30, For the Six Months Ended June 30, $ Millions, except per share data 2023 2022 2023 2022 Net Income Earnings Per Net Income Earnings Per Net Income Earnings Per Net Income Earnings Per Share Share Share Share
Slide 22: Investor Relations Contacts
Investor Relations Contacts Ira M. Birns Executive Vice President & Chief Financial Officer Elsa Ballard Vice President of Investor Relations Investor@worldkinect.com Copyright © 2023 World Kinect Corporation. All Rights Reserved. 22