Slide 1: Third Quarter 2021 Earnings Call
Third Quarter 2021 Earnings Call Thursday, October 28, 2021 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 2: Caution Concerning Forward Looking Statements
Caution Concerning Forward Looking Statements Certain statements made today, including comments about World Fuel's expectations regarding future plans, performance and acquisitions are forward-looking statements that are subject to a range of uncertainties and risks that could cause World Fuel's act
Slide 3: Business Overview
Business Overview Michael Kasbar Chairman and Chief Executive Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 2
Slide 4: Financial Overview
Financial Overview Ira Birns Executive Vice President and Chief Financial Officer Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 3
Slide 5: Financial Overview
Financial Overview We generated Adjusted third quarter net income and earnings per Adjusted third quarter Third quarter consolidated volume up $83 million share were of operating cash flow EBITDA was 9% sequentially in the third quarter and $23 million $63 million and 23% increased our net cash posi
Slide 6: Volume by Segment
Volume by Segment Aviation Marine Land Aviation Volumes increased Marine Volumes increased Land Volumes increased 63% in Q3 2021 9% in Q3 2021 vs. 4% in Q3 2021 vs. vs. Q3 2020 Q3 2020 Q3 2020 1,656 4.6 4.8 4.4 1,242 1,288 1,294 1,374 1,017 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2 2021 Q3 2021 Q3 2020 Q2
Slide 7: Gross Profit by Segment ($ in millions)
Gross Profit by Segment ($ in millions) Aviation Marine Land Aviation Gross Profit Marine Gross Profit Land Gross Profit decreased increased 19% in Q3 decreased 31% in Q3 4% in Q3 2021 vs. 2021 vs. Q3 2022 2021 vs. Q3 2020 Q3 2020 $113 $95 $74 $88 $65 $63 $32 $23 $22 Q3 2020 Q2 2021 Q3 2021 Q3 2020
Slide 8: Core Operating Expenses Interest Expense
Core Operating Expenses Interest Expense ($ in millions) ($ in millions) Continued focus on expense management while activity increases Q4’21 Estimate: Q4’21 Estimate: $156 - $160 $10M - $11M $153 $10 $9 $133 Q3 2020 Q3 2021 Q4 2021E Q3 2020 Q3 2021 Q4 2021E Core Operating Expenses exclude provision
Slide 9: Consolidated Gross Profit, EBITDA and Income from Operations
Consolidated Gross Profit, EBITDA and Income from Operations ($ in millions) $192 $197 $185 $57 $60 $63 $39 $44 $36 Q3 2020 Q2 2021 Q3 2021 Gross Profit EBITDA Income from Operations Reflects proforma results excluding the operating results of the MultiService payment solutions business that was sol
Slide 10: Financial Overview
Financial Overview Strong balance Total Accounts We generated sheet includes Receivable $83 million balance was $796 million of cash flow from of cash at $2.0 billion operations quarter end Copyright 2019 World Fuel Services Corporation. All Rights Reserved. 9
Slide 11: Acquisition of Flyers Energy Group
Acquisition of Flyers Energy Group October 2021 Copyright 2018 World Fuel Services Corporation. All Rights Reserved.
Slide 12: Transaction Overview
Transaction Overview • Approximately $775 million Price • Will fund with cash-on-hand and revolver draw • $675 million to be paid at closing with up to $50 million in equity Structure • $50 million cash paid on the 1st and 2nd anniversaries of closing 2021E Gross Profit • $135 million • Transaction
Slide 13: Flyers is a Best-in-Class Platform, Core to our Long-Term Strategy
Flyers is a Best-in-Class Platform, Core to our Long-Term Strategy, which will Enhance the North American Growth Potential Flyers Energy distributes diesel, renewable fuels, lubricants and gasoline to its portfolio of commercial, industrial and retail customers Segments CARDLOCK RETAIL BULK PLANTS S
Slide 14: Delivers a Comprehensive and Efficient Fuel Distribution Solution
Delivers a Comprehensive and Efficient Fuel Distribution Solution Cardlocks Retail Contracted distribution to 100+ branded fuel Unmanned fuel sites where customers stations, which will increase World Fuel purchase fuel with fleet cards Services’ retail distribution network to more National cardlock
Slide 15: Further Sharpening the Land Portfolio
Further Sharpening the Land Portfolio 2019 Gross Profit by Segment Post-Transaction Run-Rate Gross Profit by Segment UK Fuel & Brazil & Heating Oil Other US Retail Gov't Related Marine Natural Gas, Marine Power & North Natural Gas, Sustainability American Power & Aviation Land Land C&I / Sustainabil
Slide 16: Acquisition Expands Platform to Continue Growing Renewable Fuels Distribution
Acquisition Expands Platform to Continue Growing Renewable Fuels Distribution World Fuel Services will now have more than 30,000 commercial and industrial customers to support the growth in supply of Renewable Fuels Copyright 2018 World Fuel Services Corporation. All Rights Reserved. 14
Slide 17: Will Enhance Density of the Land Fuels Segment and Significantly Improve Scale
Will Enhance Density of the Land Fuels Segment and Significantly Improve Scale Further expands World Fuel Services balanced portfolio with value chain and distribution density across the United States ✓Will significantly expand World Fuel Services cardlock l l l l l l l l l l l l ll l ll l llllll l
Slide 18: Adds Significant Scale, Delivers Strong Earnings per Share Accretion
Adds Significant Scale, Delivers Strong Earnings per Share Accretion and Supports the Growth of the Business ✓ Strategic acquisition of a stable, ratable and ✓ Heightens the opportunity to participate growing business in growth of renewable fuels ✓ Low risk customer portfolio ✓ Improves the overall
Slide 19: Questions + Answers
Questions + Answers Copyright 2019 World Fuel Services Corporation. All Rights Reserved.
Slide 20: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) Q3 2020 Q3 2021 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $97.6 $0.0 $97.6 $113.0 $0.0 $113.0 Operating Expenses 68.4 (2.0) 66.4 56.0 0.2 56.2 Income from Operations 29.2 2.0 31.2 57.
Slide 21: Earnings Reconciliation ($ in millions except per share data)
Earnings Reconciliation ($ in millions except per share data) For the 9 Months Ended September 30, 2020 For the 9 Months Ended September 30, 2021 1 As Reported Adjustments As Adjusted As Reported Adjustments1 As Adjusted Aviation Gross Profit $282.6 $0.0 $282.6 $277.1 $0.8 $277.9 Operating Expenses