Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q1 2022 Earnings Presentation
23 slides from Wallenius Wilhelmsen Asa's earnings presentation, 2022
Slide 1: Q1 Report 2022
Wallenius Wilhelmsen ASA Q1 Report 2022
Slide 2: Highlights – Q1 2022
Highlights – Q1 2022 • Strong EBITDA of USD 309m driven by the shipping segment • Some margin pressure due to fuel prices and supply chain issues • Cash position increased to USD 759m driven by solid EBITDA • Limited direct impact on business from war in Ukraine • Issue of NOK 1.25bn sustainability-
Slide 3: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Financial update 4. Prospects and Q&A
Slide 4: Shipping update
r W iinet EUKOR an ° Main Fleet Information 2 Intensity {g/t*km)
Slide 5: Shipping volumes up 1% QoQ despite seasonality and operational disruptions
Shipping volumes up 1% QoQ despite seasonality and operational disruptions Shipping services volumes and cargo mix Million CBM +8% +1% % • Continued solid volumes in most trades, except EU-Asia 40 18 15.5 16.6 15.6 16.2 mainly due to less sailings 16 15.3 15.3 15.5 14.8 14.6 35 14.3 14 12.6 11.9 30
Slide 6: Stable fleet development in Q1
Stable fleet development in Q1 Fleet capacity Controlled fleet + net short-term charters in # of vessels1 • Total fleet at 129 vessels 136 132 129 131 129 130 129 127 123 122 • One vessel sale from the 117 government segment 74 • Less usage of short-term 81 77 82 83 83 83 82 charters 84 73 75 • No f
Slide 7: High underlying auto demand from consumers not reflected in Q1 LV sales
High underlying auto demand from consumers not reflected in Q1 LV sales, 2022FY sales growth still expected LV SALES LV DEEPSEA LIGHT VEHICLE SALES OUTLOOK +8% +3% +2% YoY Q1-22 (unit growth) -5.4% -5.9% o We still expect increased sales figures o Semiconductor shortage holding back despite the unre
Slide 8: Strong H&H demand despite additional headwinds on both supply and demand side
Strong H&H demand despite additional headwinds on both supply and demand side CONSTRUCTION MINING AGRICULTURE EQUIPMENT PRODUCER SALES OUTLOOK3 +25% +14% +7% YoY Q1-221,2 (unit growth) +24% N/A +2% o Increasing construction activity o Metal prices significantly o Strong farm income from food above p
Slide 9: Tight tonnage situation - limited recycling and still moderate orderbook
Tight tonnage situation - limited recycling and still moderate orderbook New orders have a lead time of 3-4 years. Easing of current supply chain inefficiencies will add capacity GLOBAL FLEET* End Q1 (end Q4) #43 (43) #51 (39) 94% (96%) vessels built between fleet utilization rate in vessels in orde
Slide 10: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Financial update 4. Prospects and Q&A
Slide 11: Logistics update
Logistics update 11
Slide 12: Volumes improved as customers experienced fewer chip related shut-downs
Volumes improved as customers experienced fewer chip related shut-downs • Increased auto volumes as production plants experienced fewer disruptions • H&H revenue largely up on lower margin inland transportation business • Terminals positively impacted by shipping volumes and seasonality • EMEA/APAC
Slide 13: Chip shortage continues to impact key logistics market
Chip shortage continues to impact key logistics market, while end-user demand remain solid despite increased inflation LOGISTICS – key markets for Light Vehicles North America LV Volume Europe LV Volume 5.1 4.9 6.1 4.4 4.2 4.2 5.1 4.8 4.4 4.7 Units per quarter in millions Q1 2019 Q1 2020 Q1 2021 Q4
Slide 14: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Financial update 4. Prospects and Q&A
Slide 15: Financial highlights Q1 2022
Financial highlights Q1 2022 RESULTS (USDm) KEY FINANCIAL METRICS Total revenue Adjusted EBITDA Adj. ROCE* (%) Q4-21 Q1-22 1 078 1 149 306 301 +6.5 7.8 Group 838 +2.1 132 Net profit 98 177 862 930 279 278 623 Adj. EBITDA Shipping 28.4% 26.2% Equity ratio (%) 100 margin +3.2 203 199 211 29 37.4
Slide 16: Shipping continues to deliver high EBITDA, government flat QoQ, logistics margins under pressure
Shipping continues to deliver high EBITDA, government flat QoQ, while logistics margins come under pressure Shipping – Adj. EBITDA 1 Logistics – Adj. EBITDA 1 Government – Adj. EBITDA 1 USDm USDm USDm +178% 0% -23% -7% -22% +10% 279 278 35 300 50% 35 20% 20 40% 32 10 29 8 35% 250 30 15 40% 24 12 11
Slide 17: Revenues increased QoQ, while adjusted EBITDA was flat on cost pressure
Revenues increased QoQ, while adjusted EBITDA was flat on cost pressure +71 • Revenue up USD 71m QoQ 12 -1 -2 22 0 • Higher rates per CBM driven -7 by cargo mix and 38 renegotiated contracts 9 1 149 USDm • Fuel surcharges increase on rising global oil prices 1 078 Revenue Volume effect Revenue per C
Slide 18: Cash increased by USD 49m driven by solid EBITDA
Cash increased by USD 49m driven by solid EBITDA Comments +28 • Working capital includes payment of -24 -7 0 -6 USD 26m in customer settlements and 0 -44 329 fines 349 301 -172 • Net capex includes i.e.: -1 • USD 21m for the sale of an older vessel to the US government USDm • USD 10m investment in o
Slide 19: Solid balance sheet and strong liquidity position
Solid balance sheet and strong liquidity position COMMENTS BALANCE SHEET 31.03.2022 Debt Maturity Profile USD billion USD million • Equity ratio at 37.4% Assets Equity & Liabilities 1 013 7 929 7 929 • Net debt down to USD 3.3bn • USD 49m of deferred debt 789 instalments in WW Ocean prepaid 2 965 70
Slide 20: In April we successfully issued our first sustainability-linked bond of NOK 1,250m
In April we successfully issued our first sustainability-linked bond of NOK 1,250m Sustainability-linked financing framework • Target to reduce CO2 intensity by 27.5% from 2019-2030 • Pricing mechanism linked to achieving the CO2 intensity target First Sustainability Linked Bond Issue NOK 1,250m Our
Slide 21: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Financial update 4. Prospects and Q&A
Slide 22: Prospects
Prospects • We continue to expect the supply-demand balance in shipping to remain favorable over the mid-term due to the overall global fleet situation. Logistics volumes will benefit from gradual improvement of automotive semiconductor chip supply expected during the latter part of 2022. This is ex
Slide 23: Q&A
Q&A oo leseslia=| Ee See] Mes ele a) fo) a) 7), tt Factory and plants ees O04 ES Ses Terminal Processing centers tt \ Ocean End customer