Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wilh. Wilhelmsen — Q3 2016 Earnings Presentation
13 slides from Wallenius Wilhelmsen Asa's earnings presentation, Nov 11, 2016
Slide 1: Wilh. Wilhelmsen ASA Third quarter 2016
> Wilh. Wilhelmsen ASA Third quarter 2016 Wilh. Wilhelmsen ASA 11th November 2016 Jan Eyvin Wang, President and CEO > Agenda • Macro developments • Volume developments • Outlook • Merger between WW and OW Disclaimer This presentation contains forward-looking expectations which are subject to risk an
Slide 2: Light vehicle sales in key markets – quarterly
> Light vehicle sales in key markets – quarterly Soft quarter in key markets Million units Region Q3'16 Q2'16 QoQ change Q3'15 YoY change 2016 FY N America 5.38 5.64 -5 % 5.29 2% 20.90 Europe* 3.98 4.67 -15 % 3.80 5% 17.00 Oceania 0.32 0.35 -9 % 0.32 0% 1.30 BRICs 7.96 7.90 1% 7.09 12 % 32.40 .....B
Slide 3: CAT resource industries sales; Group ocean volume development
> CAT resource industries sales (USD billion) Bottoming out? Resource Industries 7 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2011 2012 2013 2014 2015 2016 Resource Industries 5 Resource industries includes mainly mining and forestry related e
Slide 4: Group ocean cargo segment development; Outlook
> Group ocean cargo segment development Both Auto and High & Heavy volumes down in the third quarter 7 *) Unprorated ocean volumes – WWL and EUKOR (100 %) > Outlook • Continued soft fundamentals are exacerbated by political uncertainties • Anti-trust provisions stands at USD 108 million • IMO: 0.5 %
Slide 5: Sulphur content in fuel – today and from 2020
> Sulphur content in fuel – today 9 > Sulphur content in fuel – from 2020 10
Slide 6: Sulphur content – Three ways to comply; WWASA Group
> Sulphur content – Three ways to comply 1. Purchase Sulphur compliant fuel – Marine Gas Oil or Ultra Low Sulphur Fuel Oil – 0.1 % – Low Sulphur Fuel Oil – 0.5 % 2. Install Scrubber technology and operate High Sulphur Fuel Oil – 3.5 % - Payback time 2-6 years 3. Install propulsion system based on LN
Slide 7: WWASA and OW merger
> WWASA and OW merger Tentative timeline and key milestones • Early / mid December: BoD resolution of merger plan and summons to EGM • Mid / end January: IM published and EGM held • Mid/end March: Creditor periods expire • End March: Expected clearance of anti trust filings Completion of merger end
Slide 8: Key financials
> Wilh. Wilhelmsen ASA Third quarter 2016 Wilh.Wilhelmsen ASA 11th November 2016 Benedicte B. Agerup, CFO > WWASA Group – Key financials Underlying income and profitability declined q-o-q • Total income reported - 49% q-o-q, - 20% y-o-y • EBIT reported - 92% q-o-q • Substantial positive non recurrin
Slide 9: WWASA Group – Profit and Loss Q3 2016
> WWASA Group – Profit and Loss Q3 2016 Proportionate method USD million 2016 Q3 2016 Q2 2016 YTD 2015 YTD 2015 Q3 2015 FY Operating income 418 452 1 301 1 591 511 2 095 Gain on sale of assets 375 455 26 29 Share of profits from JV's and associates 13 35 12 36 Total income 418 827 1 769 1 652 522 2
Slide 10: WWASA Shipping – EBIT margin; Logistics – Key financials
> WWASA Shipping – EBIT margin Weak EBIT margin *) *) Q3 2015 EBIT margin -34.4%, large negative non-recurring item + Lower G&A cost base - Suboptimal cargo and trade mix + Reduced OPEX - Reduced volumes - Rate pressure 19 > WWASA Logistics – Key financials Results on par q-o-q • Total income report
Slide 11: Newbuilding program ended; Financial income/(expense)
> WWASA Newbuilding program ended Q2 2016 • Capex program finalized Q2 2016 with delivery of 2 post panamax vessels in April and June • Normal dry-docking of MUSD 10-15 MUSD on an annual basis only planned capex 21 > WWASA Group – Financial income/(expense) *) Decline in net financial expenses q-o-q
Slide 12: WWASA Group – Balance Sheet and interest bearing debt
> WWASA Group – Balance Sheet*) Continued strong balance sheet USD million 30.09.2016 31.12.2015 Assets Non current assets 2 779 87 % 2 925 89 % Current assets (excl liquid funds) 17 1% 24 1% Liquid funds 412 13 % 349 11 % Total assets 3 207 100 % 3 299 100 % Equity & liabilities Equity 1 455 45 % 1
Slide 13: Group – Liquidity development; Thank you!
> WWASA Group – Liquidity development Positive contribution from operations USD million 465 460 455 450 445 33 440 45 435 430 3 4 0 425 420 416 21 415 411 410 5 405 400 5 0 Liquidity EBITDA*) JVs Dividend Net Capex Interest Other Liquidity Q2 2016 received financing and Q3 2016 from JV’s derivatives