Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q1 2019 Earnings Presentation
27 slides from Wallenius Wilhelmsen Asa's earnings presentation, May 7, 2019
Slide 1: Q1 2019 Quarterly presentation
May 7th 2019 Q1 2019 Quarterly presentation
Slide 2: Highlights first quarter 2019
Highlights first quarter 2019 EBITDA of USD 218 million, a significant improvement y-o-y Ocean results positively impacted by performance improvement initiatives, lower net bunker cost and project cargo in the Atlantic Underlying flat ocean volume development y-o-y The landbased segment delivered st
Slide 3: Agenda
Agenda Business update Financial performance Market outlook Outlook and Q&A
Slide 4: Business update
Business update by Craig Jasienski
Slide 5: Underlying flat volume development in the quarter
Business Update Financial Performance Market Outlook Outlook and Q&A Underlying flat volume development in the quarter Volume and cargo mix development Comments Million CBM and % Auto High & heavy High & heavy share Million CBM 19.5 -2% -5% % • Overall y-o-y Auto volumes pulled down by 20 19.4 32 18
Slide 6: Mixed development for the foundation trades
Business Update Financial Performance Market Outlook Outlook and Q&A Mixed development for the foundation trades EU - ASIA Asia - EU Atlantic Shuttle -14% -22% -3% -6% -11% -5% 3.2 3.0 2.9 2.9 2.8 2.5 3.4 3.1 3.0 Q1 ’18 Q4 ’18 Q1 ’19 Q1 ’18 Q4 ’18 Q1 ’19 Q1 ’18 Q4 ’18 Q1 ’19 Asia - NA EU/NA – Oceani
Slide 7: Fleet capacity tightly managed
Business Update Financial Performance Market Outlook Outlook and Q&A Fleet capacity tightly managed - voyage rationalization efforts helped to minimize use of tonnage Fleet development Comments # of vessels Owned Chartered Short Term T/C In/Out • Wallenius Wilhelmsen controlled a fleet of 123 vessel
Slide 8: Some contractual wins in early 2019
Business Update Financial Performance Market Outlook Outlook and Q&A Some contractual wins in early 2019 - majority of volume yet to be renewed Overview of 2019 contract renewals Rate changes and impact for 2019 contract renewals USD and percent (Circle indicate size of contract in millions) Rate ch
Slide 9: Positive development for net freight/CBM
Business Update Financial Performance Market and Business Outlook Outlook and Q&A Positive development for net freight/CBM - some effects unlikely to continue in the following quarters Net freight / CBM development1) Comments • Net freight/CBM increased 7% y-o-y and q-o-q 44 +7% +7% mainly due to a
Slide 10: Performance improvement program off to a good start
Business Update Financial Performance Market Outlook Outlook and Q&A Performance improvement program off to a good start - remaining improvements carry a longer lead time Confirmed and realized improvements Comments USD million in annualized effect 100 • USD 60 million of the USD 100 million perform
Slide 11: Financial performance
Financial performance by Rebekka Herlofsen
Slide 12: Consolidated results – first quarter 2019
Business update Financial Performance Market Outlook Outlook and Q&A Consolidated results – first quarter 2019 Q1 2019 Q4 2018 Q1 2018 Comments Total income 1 018 1 022 968 • Total income was USD 1 018 million in the first Operating expenses (799) (854) (843) quarter, up 5% y-o-y due to increased re
Slide 13: IFRS 16 – Impact for Wallenius Wilhelmsen
IFRS 16 – Impact for Wallenius Wilhelmsen Impact of Change in Lease Accounting (IFRS 16) – Q1 2019 USD million Effect on balance sheet Effect on income statement 855 855 Ocean Landbased 42 31 5 11 3 2 -2 Assets Liabilities -3 -6 EBITDA EBIT Net result 13
Slide 14: Ocean segment – first quarter 2019
Business update Financial Performance Market Outlook Outlook and Q&A Ocean segment – first quarter 2019 Total income and EBITDA ocean segment1 Comments USD million Total income EBITDA • Total income was USD 812, up 8% y-o-y driven by higher net freight/CBM and fuel cost compensation from IFRS 16 eff
Slide 15: Landbased segment – first quarter 2019
Business update Financial Performance Market and Business Outlook Outlook and Q&A Landbased segment – first quarter 2019 Total income and EBITDA landbased segment Comments USD million Total income EBITDA • Total income in the first quarter was USD 232 million with all business segments delivering IF
Slide 16: Cash flow and liquidity development – first quarter 2019
Business update Financial Performance Market and Business Outlook Outlook and Q&A Cash flow and liquidity development – first quarter 2019 Cash flow and liquidity development Comments USD million • CAPEX of about USD 9 million includes 218 • Dry docking and newbuildings (USD 2 million) -9 -11 • Land
Slide 17: Balance sheet review – first quarter 2019
Business update Financial Performance Market Outlook Outlook and Q&A Balance sheet review – first quarter 2019 Balance Sheet 31.03.2019 Comments USD billion Assets Equity & Liabilities • Total assets of USD 8.3 billion with equity ratio of 35.0%, down from 38.8% in the previous quarter 8.3 8.3 due t
Slide 18: Market outlook
Market outlook by Craig Jasienski 18
Slide 19: Auto sales down 4.3% y-o-y
Business update Financial Performance Market Outlook Outlook and Q&A Auto sales down 4.3% y-o-y - driven by slow sales in all major markets Global light vehicle (LV) sales per quarter1,2) Regional LV sales per month1,2) Units Growth (y-o-y) USA -3.0% -3% -2% -2% Sales continued down, -4.3% -2.7% how
Slide 20: Auto exports down 1.1% y-o-y
Business update Financial Performance Market Outlook Outlook and Q&A Auto exports down 1.1% y-o-y Global LV export per quarter Regional LV import per quarter Units Growth (y-o-y) +7.9% North America -4.2% YTD -1.1% -2.3% +0.8% Imports declined in the quarter, 3.74 3.85 3.75 -0.7% following NA produc
Slide 21: Market uncertainty has increased
Business update Financial Performance Market Outlook Outlook and Q&A Market uncertainty has increased - auto analysts remain positive about medium-term growth prospects Global LV forecasts Units and growth (y-o-y) Global LV sales Several factors fuel uncertainty in short and medium term: +2.2% +4.5%
Slide 22: High & heavy trade remained solid
Business update Financial Performance Market Outlook Outlook and Q&A High & heavy trade remained solid - momentum keeps softening Construction Machinery Mining Machinery Agriculture Machinery Exports (YoY) Sales (YoY) Exports (YoY) 40% 60% 40% EXPORT1 & 20% 30% 20% SALES DATA2 0% 0% 0% -30% -20% -60
Slide 23: Orderbook remained thin
Business update Financial Performance Market Outlook Outlook and Q&A Orderbook remained thin Car Carrier Fleet Orderbook Fleet and demand growth # vessels equal or above 4000 CEU Percent 15 9 Growth y-o-y 4 3 2 5 1 0 2018 2019 2020 2021 1 Demand growth Net fleet growth Order book 2019 2020 2021 • No
Slide 24: Wallenius Wilhelmsen took delivery of MV Traviata on 11 April 2019
Business update Financial Performance Market Outlook Outlook and Q&A Wallenius Wilhelmsen took delivery of MV Traviata on 11 April 2019 • A High Efficiency RoRo (HERO) class vessel with capacity of 8,000 CEU • The design ensures efficient operations under a wide range of sea conditions, and reduces
Slide 25: Outlook and Q&A
Outlook and Q&A by Craig Jasienski
Slide 26: Outlook
Business update Financial Performance Market Outlook Summary and Q&A Outlook Volume outlook remains uncertain – due to macro picture Market rates remain at a low level – but tonnage balance gradually improving Net freight/CBM and project cargo shipments – not expected to remain at first quarter leve
Slide 27: Thank you!
W Wallen ius Wilhelmsen Thank you!