Wallenius Wilhelmsen Asa · OSL:WAWI

Wallenius Wilhelmsen Asa — Q3 2025 Earnings Presentation

40 slides from Wallenius Wilhelmsen Asa's earnings presentation, 2025

  1. Slide 1: Wallenius Wilhelmsen ASA Q3 2025

    Wallenius Wilhelmsen ASA Q3 2025

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains forward-looking information and statements relating to the business, financial performance and results of the Group, and/or the industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may be identifi

  3. Slide 3: Agenda

    Agenda 1. Highlights 2. Market update 3. Business update 4. Sustainability update 5. Financial update 6. Prospects & Q&A 3

  4. Slide 4: Firm performance in challenging times

    Firm performance in challenging times Delivered adjusted EBITDA of USD 471m, on par with the previous quarter Demand for ocean transportation remains firm from Asia Opened three new Vehicle Processing Centers in Australia following a contract with an Asian OEM Reported a gain of USD 16m linked to a

  5. Slide 5: Agenda

    Agenda 1. Highlights 2. Market update 3. Business update 4. Sustainability update 5. Financial update 6. Prospects & Q&A 5

  6. Slide 6: Three major market trends to watch

    Three major market trends to watch 1 Continued growth out of Asia 2 US tariffs and port fees confirmed 3 Shipping market remain balanced Continued growth ex Asia drives increased US vehicle tariffs set at 15%, easing pressure Global fleet projected to expand by 13% in 2025 demand despite modest volu

  7. Slide 7: Deep-sea volumes are forecast to increase by 3% in 2025

    Deep-sea volumes are forecast to increase by 3% in 2025, with diverging trends across trade lanes Annual global deep-sea volumes split by trade1 Million light vehicles AS-NA AS-EU AS-ME EU-NA EU-AS Intra-Asia AS-SA Other 3% YoY growth 5% 13% 15.3 13% 14.9 -2% -4% 14.1 13.1 2.8 2.9 20% 12.5 2.9 11.5

  8. Slide 8: Continuation of rising East-West imbalance fueling underlying demand for tonnage

    Continuation of rising East-West imbalance fueling underlying demand for tonnage Development of passenger car volumes ex. East Development of passenger car volumes ex. West Million light vehicles Million light vehicles China Japan Korea EU USA UK 11.7 3.1 3.1 -11% 11.2 3.0 10.5 0.3 0.3 2.8 0.2 2.8 2

  9. Slide 9: China is increasing exports and innovation, will the growth continue?

    China is increasing exports and innovation, will the growth continue? Chinese exports of light vehicles Some Chinese auto milestones Million Chinese exports 3rd party forecast Fastest production car in the world: Forecast Actuals may be to 496.22 km/h conservative BYD Yangwang U9 Xtreme 5.70 5.37 Ve

  10. Slide 10: Chinese OEMs are in the forefront of technology and innovation

    Chinese OEMs are in the forefront of technology and innovation Gartners’ Digitalization Ranking of OEMs Top-ranked Chinese companies have a lot in common Overall score Western Chinese Chinese Chinese Born digital – Cloud as their platform with Over-The-Air updates, Chinese prioritizing digital funct

  11. Slide 11: US Tariffs largely confirmed at 15%, USTR port fees at USD 46 per net ton

    US Tariffs largely confirmed at 15%, USTR port fees at USD 46 per net ton Status on tariffs in key auto markets Status USTR port fees Country Key Auto Takeaways Status • Quota of 100,000 UK auto imports at a 10% tariff rate • On October 10th, 2025, a fee of USD • Above quota, a 25% tariff rate 46 pe

  12. Slide 12: US light vehicle sales strong in Q3 2025, with YoY growth in domestic production

    US light vehicle sales strong in Q3 2025, with YoY growth in domestic production U.S. Vehicle sales1 U.S. Vehicle production1 Million Million Sales Heavy and medium trucks2 Auto3 +4% Light trucks4 17.9 16.8 16.1 15.7 15.8 15.7 16.4 15.8 15.6 15.1 15.3 13.8 13.3 13.6 13.4 12.3 12.7 +3% 11.5 10.5 10.1

  13. Slide 13: US imports from Asia, Mexico and Canada stable, imports from Europe declining

    US imports from Asia, Mexico and Canada stable, imports from Europe declining Rolling 3 months imports of cars to the U.S. split by origin Thousand Canada/Mexico South Korea Europe Japan Other 790 754 740 +5% 743 736 710 713 721 707 714 688 695 697 -1% 680 360 390 368 338 342 336 368 -37% 419 340 18

  14. Slide 14: Fleet expansion continues to be absorbed by growth in volumes ex-Asia

    Fleet expansion continues to be absorbed by growth in volumes ex-Asia Development of global fleet capacity1 Vessel demand and utilization2 Million CEU Million CEU (LHS) & estimated utilization (RHS) Fleet size BoP Deliveries On order Recycled & lost Demand (LHS) Supply (LHS) Utilization rate (RHS) 8

  15. Slide 15: Wallenius Wilhelmsen is global infrastructure and used to manage disruptions

    Wallenius Wilhelmsen is global infrastructure and used to manage disruptions Wallenius Wilhelmsen volumes and Adjusted EBITDA Million cbm & USD 2020 2021 2022 2023 2024 2025 Trump wins 2024 Russia invaded Port fees on RoRo Covid-19 Suez canal Panama Canal Bridge collapse Presidential Ukraine vessels

  16. Slide 16: Agenda

    Agenda 1. Highlights 2. Market 3. Business 4. Sustainability 5. Financial results 6. Prospects & Q&A 16

  17. Slide 17: Q3 2025 financials

    Strong group EBITDA of USD 488m (adjusted USD 471m) Shipping services Logistic services Government services Q3 2025 financials 1,011 USD m in revenues 407 USD m of adj. EBITDA 272 USD m in revenues 34 USD m of adj. EBITDA 112 USD m in revenues 44 USD m of adj. EBITDA Adj. EBITDA, USD m -1% QoQ +7% Q

  18. Slide 18: Close to USD 300m worth of contract backlog added in the quarter

    Shipping services Logistic services Government services Close to USD 300m worth of contract backlog added in the quarter % of Shipping volume based on contract Estimated contract revenue split for Total contract backlog startup1 Logistic services (USD m)2 Estimated 2025 lifting capacity 7% Shipping

  19. Slide 19: Shipping volumes saw a small seasonal decline QoQ

    Shipping services Logistic services Government services Shipping volumes saw a small seasonal decline QoQ Shipping services volumes and H&H share Million cbm1 & H&H/BB %-share of total2 Auto H&H/BB Share of H&H/BB 18 Prior to Red Sea avoidance -3% 15 14.0 13.7 13.6 -1% • Volumes impacted by seasonal

  20. Slide 20: Loaded H&H volumes indicate that Q1, 2025 was the bottom of the cycle

    Shipping services Logistic services Government services Loaded H&H volumes indicate that Q1, 2025 was the bottom of the cycle High & Heavy volumes cbm1 & %-share of total volumes H&H/BB H&H/BB share, unprorated in % 23% 23% • HH loaded volumes stabilizing -4% -2% above Q1, 2025 bottom • H&H and BB’s

  21. Slide 21: YTD net rate per cbm up 7% compared to same period last year

    Shipping services Logistic services Government services YTD net rate per cbm up 7% compared to same period last year Net freight rate/cbm and estimated net TCE earnings/day1 Net freight rate/cbm for QoQ and YoY YTD (USD) Estimated net TCE earnings/day (USD 000) +1% Net freight rate per CBM (USD) +7%

  22. Slide 22: Substantial value created from Q3 vessel transactions, with optionality for more

    Substantial value created from Q3 vessel transactions, with optionality for more Holds optionality for further accretive vessel acquisitions Declared purchase option for a 15-year-old vessel 2025 • Cost: <USD 15m • Q3: Option declared for two vessels, Q2/Q3 26 delivery • ~15 years at delivery • Mark

  23. Slide 23: US port fees will have financial impact in Q4 2025, and possibly into 2026

    US port fees will have financial impact in Q4 2025, and possibly into 2026 • Unmitigated Financial Exposure: • Q4 2025: USD ~100m • 2026: USD 350-400m • Target to mitigate through operational means and recover most or all of the remaining, direct costs from customers 23

  24. Slide 24: Terminals deliver a strong quarter, whilst U.S. auto and H&H remains soft

    Shipping services Logistic services Government services Terminals deliver a strong quarter, whilst U.S. auto and H&H remains soft Volumes handled at our facilities Auto EBITDA margin +5% 15% 15% 15% 15% 15% 11% 14% 12% 11% 14% • Auto volumes increased QoQ despite soft U.S. volumes 8% 6% 6% 5% 2% • S

  25. Slide 25: Global network expanded with three Vehicle Processing Centers in Australia

    Shipping services Logistic services Government services Global network expanded with three Vehicle Processing Centers in Australia Logistics revenue in Australia Million USD Auto revenue H&H revenue 27.5 26.4 4.3 4.8 • Added three new VPCs in Australia 20.4 in Q3 to support new Auto OEMs 3.6 growing

  26. Slide 26: Government services continue to deliver good performance

    Shipping services Logistic services Government services Government services continue to deliver good performance Government services revenue split1 Million USD US flag MSP Commercial cargo +6% 117 8 111 112 4 107 106 13 13 13 8 14 • Government cargo revenue 13 13 -10% remains firm in Q3. YoY reducti

  27. Slide 27: Agenda

    Agenda 1. Highlights 2. Market update 3. Business update 4. Sustainability update 5. Financial update 6. Prospects & Q&A 27

  28. Slide 28: LTIF for both shipping and logistics below target and with positive trend

    LTIF for both shipping and logistics below target and with positive trend LTIF for Shipping & Government and Logistics services LTIF LTM Target 1.12 1.02 Shipping & Govt.1 0.70 0.54 0.21 • LTIF Shipping2 is at 0.54 for Q3 0.22 0.18 0.20 2025, up from 0.20 in Q2 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3

  29. Slide 29: Absolute emissions up 1.7% QoQ due to increased activity level

    Absolute emissions up 1.7% QoQ due to increased activity level Absolute emissions CO2e intensity Thousand tonne CO2e gCO2e / tonne nautical miles (EEOI) Tank-to-wake Well-to-tank CO2e intensity target Actual CO2e intensity +3.9% 0.0% 64.5 58.4 61.2 64.7 +5.2% +1.7% 61.8 61.8 1,295 57.7 1,228 1,192 1

  30. Slide 30: Agenda

    Agenda 1. Highlights 2. Market update 3. Business update 4. Sustainability update 5. Financial update 6. Prospects & Q&A 30

  31. Slide 31: Financial highlights – Q3 2025

    Financial highlights – Q3 2025 USD m, per cent and multiples Q3-24 Q2-25 Q3-25 YoY/QoQ Financial targets1 ROCE > 12% Revenue 1,353 1,350 1,331  -0.2 19.3% -0.6 Adj. EBITDA 503 472 471  Equity ratio > 35% +5.9 Net profit 259 403 280  40.3% -0.5 Operating Leverage ratio < 3.0x cash flow 545 451

  32. Slide 32: Shipping services EBITDA of USD 407m, down 1% QoQ due to lower volumes

    Shipping services EBITDA of USD 407m, down 1% QoQ due to lower volumes Revenue (USD m) Adj. EBITDA development QoQ (USD m) -1% +0.1% -2% 411 1 033 1 1 010 968 970 1 011 407 2 21 7 10 15 4 1 -30 Adj. EBITDA (USD m) -2% -1% 416 411 407 371 387 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q2-25 adj. Net freight Fuel

  33. Slide 33: Logistics services EBITDA of USD 34m, up 6% QoQ

    Logistics services EBITDA of USD 34, up 6% QoQ due strong terminal performance Revenue (USD m) Adj. EBITDA development QoQ (USD m) +6% -7.3% 0% 1 34 294 296 281 273 272 3 0 1 32 Adj. EBITDA (USD m) -2 -27% +6% 47 44 37 32 34 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q2-25 adj. Auto H&H Terminals Inland Other Q3

  34. Slide 34: Government services EBITDA of USD 44m, up 7% on seasonally stronger volumes

    Government services EBITDA of USD 44m, up 7% on seasonally stronger volumes Revenue (USD m) Adj. EBITDA development QoQ (USD m) +7% -4.2% +6% 3 117 112 110 107 106 7 -5 44 -2 0 0 Adj. EBITDA (USD m) 41 -11% +7% 52 49 47 41 44 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q2-25 adj. Revenue Fuel Cargo Operating Char

  35. Slide 35: Liquidity position remains very solid on solid cash flow from operations

    Liquidity position remains very solid on solid cash flow from operations Cash flow and liquidity development Million USD RCF • Cash and cash equivalents at quarter end -10% of USD 1,079m, down 21% QoQ 1 912 31 (21) (16) (37) 14 (38) 1 726 Comments • Operating cash flow was USD 482m with (201) 549 48

  36. Slide 36: Strong financial metrics and liquidity reserves

    Strong financial metrics and liquidity reserves Equity NIBD Liquidity reserves Billion USD Billion USD Billion USD Book equity Equity ratio Bank/bond debt Cash balance Cash balance Leasing debt Leverage ratio RCF 40.9% 40.3% 1.0x 39.5% 0.9x 0.9x 0.9x 34.4% 34.4% 0.8x -6% +10% 3.3 3.3 3.1 1.5 1.8 1.7

  37. Slide 37: Agenda

    Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 37

  38. Slide 38: Prospects

    Prospects Demand continues to be robust as we enter the fourth quarter of 2025, and we anticipate that our underlying adjusted EBITDA will remain consistent with the levels achieved in the third quarter of 2025. However, the recent implementation of port fees in the U.S. for RoRo vessels is expected

  39. Slide 39: Q&A

    Q&A 39

  40. Slide 40: Thank you!

    Thank you!

Wallenius Wilhelmsen — Q3 2025 Earnings Presentation on 6ix