Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q4 2015 Earnings Presentation
28 slides from Wallenius Wilhelmsen Asa's earnings presentation, February 2016
Slide 1: Wilh. Wilhelmsen ASA Fourth quarter 2015
> Wilh. Wilhelmsen ASA Fourth quarter 2015 Wilh. Wilhelmsen ASA /// February 2016 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: Agenda
> Agenda • Restructuring of WWASA – NAL shares demerged and listed in new entity • WWL expands land-based activities • Market development 3
Slide 4: WWASA restructuring
> WWASA restructuring Visualising shareholder values – list new entity to be named Treasure ASA Market WWH ASA 27.3% 72.7% WW ASA Treasure ASA 100% 100% Wilhelmsen Lines NAL 12.04% 50% WWL Hyundai Glovis 40% EUKOR 50% ARC 4
Slide 5: WWASA restructuring: Demerger
> WWASA restructuring Demerger Rationale Existing bond- and shareholders • Make values more visible for • Shareholders in WWASA receive shareholders equal number of shares in • Transparency and simpler Treasure ASA structure • Treasure ASA jointly and severally • Focus on core activities responsible
Slide 6: WWASA restructuring: Preliminary timeline
> WWASA restructuring Preliminary timeline • February Incorporation of Treasure ASA • March/April IM and summons for an EGM available will be available minimum three weeks before the EGM • April Extraordinary general meeting (EGM) • April / May Prospectus for listing • End May / Early June Listing o
Slide 7: WWL expands land-based network
> WWL expands land-based network • Acquires full ownership of: – Vehicle Services Americas (VSA) – South African JV • Sells: – Vehicle Services Europe (VSE) • Total value of transactions exceed USD 200 million (100% basis) • Expected contribution to EBIT USD 10 million (WWASA share) 7
Slide 8: Extensive network in North America
> Extensive network in North America 2005 Annacis Elizabeth Oxnard Lafayette Los Angeles Smyrna Newport News Canton Brunswick Jacksonville 8
Slide 9: Extensive network in North America
> Extensive network in North America Vehicle Services Americas 2015 2005 • Processing and inland distribution for finished vehicles Richmond Annacis • Exclusive North American logistics Greensburg East Liberty management provider for Nissan/Infiniti Elizabeth Oxnard Lafayette Baltimore Chattanooga L
Slide 10: WWL Vehicle Services Americas
> WWL Vehicle Services Americas Large volumes and diversified customer mix WWL volumes handled [million units] Diversified customer mix 5 4.7 4 3 2 1.7 1 0 2005 2015 USA Canada Mexico 10
Slide 11: WWL Logistics network in South Africa
> WWL Logistics network in South Africa CAT-WWL • Leading provider of specialised outbound vehicle logistics services in South Africa • Established 2004 • Finished vehicle services, storage management and technical solutions • Some 680 000 units handled annually • 13 facilities • 950 employees As en
Slide 12: Weak volume development in a seasonal strong quarter
> Weak volume development in a seasonal strong quarter Up 1% q-o-q but down 7% y-o-y Million Cbm 22 -7% +1% 20 18 16 14 12 10 8 6 4 2 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15
Slide 13: Big drop in high and heavy volumes
> Big drop in high and heavy volumes High and heavy Auto • Decline in all main trades • Strong demand in the US lifted Asia to • Weak development in break bulk market North America and Atlantic trade due to low commodity prices • Europe to Asia up on year end sales in Asia Index Unprorated ocean vol
Slide 14: The year ahead - 2016
> The year ahead - 2016 Market drivers - No major lift in ocean volumes - High and heavy will remain soft - Continued pressure on ocean profitability - Land based remains attractive Our response - Continue cost reduction initiatives - Balancing vessel capacity 14
Slide 15: Prospect
> Prospect The board expects the market situation to remain challenging with continued pressure on profitability. 15
Slide 16: Wilh. Wilhelmsen ASA Fourth quarter 2015
> Wilh. Wilhelmsen ASA Fourth quarter 2015 Wilh.Wilhelmsen ASA February 2016 Benedicte B. Agerup, CFO
Slide 17: WWASA Group – Key financials
> Shipping WWASA Group – Key financials volumes stable. Weak earnings from the logistics segments • Total income reported - 2% q-o-q, - 13% y-o-y • EBIT adjusted - 6% q-o-q, -7% y-o-y • Improved contribution from the shipping segment. • Marginal contribution from Hyundai Glovis. 2014 2015 Total inco
Slide 18: WWASA Group – Profit and Loss 2015
> WWASA Group – Profit and Loss 2015 Proportionate method USD mill 2015 Q4 2015 Q3 2015 2014 2014 Q4 Operating income 541 546 2 243 2 525 613 Gain on sale of assets 2 29 0 0 Share of profits from JV's and associates 2 12 36 66 10 Total income 545 558 2 308 2 592 624 EBITDA 108 (94) 262 413 118 Depre
Slide 19: WWASA Shipping – Key financials
> WWASA Shipping – Key financials Strongest EBIT contribution since Q4 2012 • Total income reported - 1% q-o-q, - 14% y-o-y • EBIT adjusted is + 12% q-o-q, + 5% y-o-y. Anti trust provision of USD 200 million recorded in Q3 • Underlying EBIT improvement maily driven by cost reductions • Lower OPEX •
Slide 20: WWASA Shipping – EBIT margin
> WWASA Shipping – EBIT margin Underlying margins improving q-o-q + Lower G&A cost base - Reduced BAF surcharges + Reduced OPEX - Soft volumes - Suboptimal cargo and trade mix - Rate pressure 20
Slide 21: WWASA Logistics – Key financials
> WWASA Logistics – Key financials Weak contribution from Hyundai Glovis • Total income reported - 7% q-o-q, - 5% y-o-y • EBIT reported - 64% q-o-q, - 55% y-o-y, mainly caused by weak contribution from Hyundai Glovis • Logistics acquisition in WWL expected to improve annual net EBIT contribution to
Slide 22: WWASA Group restructuring: pre and post demerger
> WWASA Group restructuring Key financial figures - Pre and post demerger Unaudited figures 31.12.2015 WWASA group «Carve out» WWASA group excl. 2) (USD million) Incl. Hyundai Glovis Hyundai Glovis Hyundai Glovis Profit & loss1) (proportionate) Total income 2,308 36 2,272 EBITDA 435 36 399 EBIT 278
Slide 23: WWASA Group post demerger
> WWASA Group Post demerger NAL AS (Hyundai Glovis shares) WWASA Parent • Bond debt USD 270 million Market WWH ASA • Undrawn revolving credit facility USD 50 27.3% 72.7% million WW ASA Wilhelmsen Lines Group AS 100% 100% • Vessel loans USD 1,057 million • Not affected by demerger of NAL AS Wilhelmse
Slide 24: WWASA Group – Financial income (expense)
> WWASA Group – Financial income (expense) Lower net financial expense q-o-q USD mill 2015 Q4 2015 Q3 2015 FY 2014 FY 2014 Q4 2014 FY Net fi na nci a l items 2.5 (15.9) (6.3) (0.5) (2.6) (2.6) Net i nteres t expens es (23.5) (22.0) (91.4) (91.2) (23.1) (23.1) Interes t ra te deri va tives - unrea l
Slide 25: WWASA Group – Balance Sheet
> WWASA Group – Balance Sheet Strong balance sheet USD mill 31.12.2015 30.09.2015 31.12.2014 Assets Non current assets 2 925 89 % 2 900 88 % 2 955 88 % Current assets (excl liquid funds) 24 1% 24 1% 23 1% Liquid funds 349 11 % 378 11 % 375 11 % Total assets 3 299 100 % 3 302 100 % 3 353 100 % Equity
Slide 26: WWASA Group – Liquidity development
> WWASA Group – Liquidity development Continued high liquidity buffers USD mill 460 450 26 440 8 430 30 420 78 410 3 400 24 390 380 378 12 370 13 360 7 349 350 340 10 0 Liquidity EBITDA*) JVs/ Dividend Net Capex Interest Tax Dividend Other Liquidity Q3 2015 associatesreceived financing Q4 2015 from
Slide 27: WWASA Group – Semi-annual dividend per share
> WWASA Group – Semi-annual dividend per share NOK/share 4.00 4.00 • No dividend in Q2 2016 3.50 for the fiscal year 2015 3.00 • Visualising values for 2.50 shareholders through 2.00 demerger of NAL AS (Hyundai Glovis 1.50 shareholding) 1.00 1.00 1.00 1.00 1.00 0.65 0.75 0.50 0.50 0.50 0.50 0 H1 H2
Slide 28: Thank you!
> Thank you! www.wilhelmsenasa.com