Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q2 2021 Earnings Presentation
21 slides from Wallenius Wilhelmsen Asa's earnings presentation, Aug 18, 2021
Slide 1: Q2 2021 Quarterly presentation
18 August 2021 Q2 2021 Quarterly presentation
Slide 2: Highlights Q2 2021
Highlights Q2 2021 ○ Underlying results are back to pre-pandemic levels in all segments ○ Strong volumes and enhanced profitability from improved cargo and trade mix ○ High & heavy cargo volumes highest since 2012 ○ Adjusted EBITDA USD 205m, up 56% QoQ and near 2019 average ○ Provisions on anti-trus
Slide 3: Agenda
Agenda Business update Market update Financial performance Prospects and Q&A
Slide 4: Business update
Business update Torbjørn Wist, CFO and Acting CEO Michael Hynekamp, COO Logistics Services Erik Nøklebye, COO Shipping Services
Slide 5: Logistics serve customers across a broad landbased services portfolio
Business update Market update Financial performance Prospects and Q&A Logistics serve customers across a broad landbased services portfolio VEHICLE PROCESSING HIGH & HEAVY SERVICES TERMINAL SERVICES INLAND / SUPPLY CHAIN Vehicle Processing Centre Vehicles Processed* Equip Processing Centre Machines
Slide 6: Logistics had mixed development QoQ, solid cargo/service mix countered by chip shortage volume impacts
Business update Market update Financial performance Prospects and Q&A Logistics had mixed development QoQ, solid cargo/service mix countered by chip shortage volume impacts • H&H transportation activity in Americas increased QoQ • Break-bulk volumes in Terminals up on spill-over from container marke
Slide 7: Shipping volumes at pre-pandemic levels, H&H volume highest since 2012
Business update Market update Financial performance Prospects and Q&A Shipping volumes at pre-pandemic levels, H&H volume highest since 2012 Shipping services volumes and cargo mix Million CBM +78% +12% % 18 17.8 17.0 40 • H&H volumes at highest level since 2012 16.7 16.6 16.2 15.5 15.6 15.3 16 14.9
Slide 8: Fleet capacity remains tight, reactivated vessels and final newbuild will continue to add capacity
Business update Market update Financial performance Prospects and Q&A Fleet capacity remains tight, reactivated vessels and final newbuild will continue to add capacity Fleet capacity Group fleet development in # of vessels1,2 • 5 vessels re-entered service from cold 127 126 136 127 127 129 132 layu
Slide 9: Market update
Market update Erik Nøklebye COO Shipping Services
Slide 10: Light vehicle sales continue to recover – however still 6.1% below Q2 in 2019
Business update Market update Financial performance Prospects and Q&A Light vehicle sales continue to recover – however still 6.1% below Q2 in 2019 Strong consumer confidence and incentives fuel the light vehicle recovery, chip shortage for the OEMs dampen off some sales LV SALES LV DEEPSEA LIGHT VE
Slide 11: H&H surges to nine-year high despite supply failing to fulfil demand
Business update Market update Financial performance Prospects and Q&A H&H surges to nine-year high despite supply failing to fulfil demand Still a residential/non-residential dichotomy in construction, while commodity prices at multi-year highs fuel mining and agriculture CONSTRUCTION MINING AGRICUL
Slide 12: Tight tonnage situation has led to limited recycling and increasing orderbook
Business update Market update Financial performance Prospects and Q&A Tight tonnage situation has led to limited recycling and increasing orderbook New orders have a lead time of 3-4 years. Easing of current supply chain inefficiencies will add capacity GLOBAL FLEET End Q2 (end Q1) #43 (43) #16 (10)
Slide 13: Financial performance
Financial performance Torbjørn Wist CFO and Acting CEO
Slide 14: Financial highlights – Q2 2021
Business update Market update Financial performance Prospects and Q&A Financial highlights – Q2 2021 RESULTS (USDm) KEY FINANCIAL METRICS Total revenue Adjusted EBITDA ROCE (%)1 Q1-21 Q2-21 978 205 +6.5 838 3.8 Group 606 132 +3.1 104 Net profit (5) 17 757 163 623 Adj. EBITDA Shipping 458 98 100 ma
Slide 15: All segments back to pre-pandemic adjusted EBITDA
Business update Market update Financial performance Prospects and Q&A All segments back to pre-pandemic adjusted EBITDA Shipping – Adj. EBITDA 1 Logistics – Adj. EBITDA 1 Government – Adj. EBITDA 1 USDm USDm USDm +1 704% +21% +66% +63% +74% +18% 35 200 25% 35 20% 25 23 40% 163 30 28 28 29 20% 20 150
Slide 16: Adj. EBITDA up 56% QoQ, solid across segments with Shipping rebound being key contributor
Business update Market update Financial performance Prospects and Q&A Adj. EBITDA up 56% QoQ, solid across segments with Shipping rebound being key contributor 1 4 -2 -1 26 27 • Shipping services main contributor to QOQ 6 4 improvement: 77 978 USDm • Positive volume and rate effect outweigh -3 838 i
Slide 17: Cash and undrawn credit facilities up USD 17m QoQ
Business update Market update Financial performance Prospects and Q&A Cash and undrawn credit facilities up USD 17m QoQ Working capital increase, maintenance capex and debt repayment more than offset otherwise solid EBITDA +17 -57 299 299 -3 2 -29 205 1 -41 -109 50 0 USDm 599 566 Operating cash flow
Slide 18: Solid balance sheet and strong liquidity position
Business update Market update Financial performance Prospects and Q&A Solid balance sheet and strong liquidity position COMMENTS BALANCE SHEET 30.06.2021 Debt Maturity Profile USD billion USD million • Equity ratio at 34.5% 978 Assets Equity & Liabilities • Net debt at USD 3.5bn 7.6 7.6 769 • Debt m
Slide 19: Prospects
Prospects Torbjørn Wist CFO and acting CEO
Slide 20: Prospects
Business update Market update Financial performance Prospects and Q&A Prospects ○ Shipping supply-demand balance expected to remain favourable mid-term ○ Logistics volumes will benefit from stabilizing chip supplies ○ Potential risks include fleet capacity constraints, virus intensity with impact on
Slide 21: Q&A
V © Wallenius Wilhelmsen Q&A