Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Q4 2024 Earnings Presentation
34 slides from Wallenius Wilhelmsen Asa's earnings presentation, Feb 12, 2025
Slide 1: Wallenius Wilhelmsen ASA Q4 2024
Wallenius Wilhelmsen ASA Q4 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking information and statements relating to the business, financial performance and results of the Group, and/or the industry and markets in which it operates. Forward-looking statements are statements that are not historical facts and may be identifi
Slide 3: Q4 2024 and 2024 highlights
Q4 2024 and 2024 highlights A strong Q4 with adjusted EBITDA of USD 452m A record FY2024 with adjusted EBITDA of USD 1,901m and Net Profit of USD 1,065m Dividend of USD 1.24 per share declared for H2 2024, corresponding to c. 95% of H2 net profit − including an extraordinary dividend of USD 0.59 per
Slide 4: All segments delivered in a record 2024
All segments delivered in a record 2024 Shipping Logistics Government 2024 financials 3.9 USD billion in revenues 1.6 USD billion of adj. EBITDA 1.2 USD billion in revenues 197 USDm of adj. EBITDA 427 USD million in revenues 183 USDm of adj. EBITDA +28% Adj. EBITDA, USD bn 1.5 1.6 +22% 0.20 0.18 1.4
Slide 5: 95% of H2 net profit will be paid as dividend to shareholders
95% of H2 net profit will be paid as dividend to shareholders 2024 dividend c73% of net profit All-time high dividend in 20241 Remaining profit for the period Divid share of net profit Tranche 1 Extraordinary dividend 21.7% Total dividend for the period Tranche 2 Dividend yield2 73% 1.85 H2 dividend
Slide 6: USD 8.9bn worth of multi-year contracts announced in 2024
USD 8.9bn worth1 of multi-year contracts announced in 2024, of which 56% have 5- year duration Estimated value1 in USDm for contracts announced in 2024 195 112 • The announced contracts have durations ranging from 200 2 to 5 years and includes both auto and H&H 263 290 580 300 • 56% are 5-year contr
Slide 7: Deep sea volumes expected to continue to grow in 2025, increasing ton-mile demand
Deep sea volumes expected to continue to grow in 2025, increasing ton-mile demand Global LV sales, production and surplus/deficit in supply Global LV sales split by origin sales production Surplus/deficit Deep sea Regional X% YoY growth 93 +3% 90.2 89.3 90 88.0 87.9 88.1 +2% 89.6 90.2 88.0 88.0 CAGR
Slide 8: The value chain of the auto industry in NA is highly intertwined
The value chain of the auto industry in NA is highly intertwined, i.e. no cars are purely American 61% of content in the 45 most sold models in the US is sourced American sales split by origin from outside US and Canada American sales by origin – million vehicles Average share of content 61% from ou
Slide 9: Main business priorities to secure profitable growth in 2025
Main business priorities to secure profitable growth in 2025 Shipping Logistics Government Sustain high performance and Expand footprint1 and accelerate Enhance position in US Flag and US utilization growth Government market • Deliver on contract and product • Renew key contracts and expand in • Fur
Slide 10: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 10
Slide 11: Net rate at record levels in a quarter with low volumes
Net rate at record levels in a quarter with low volumes Shipping services volume and cargo mix Estimated net TCE earning/day1 and net freight rate/CBM 33 % 66 25 % 25 % 23 % 23 % 59 60 61 57 57 55 55 56 57 53 54 54 51 -3% QoQ -11.0 % YoY 56 57 55 53 53 55 53 53 15.1 14.9 15.3 15.0 52 14.4 14.2 14.8
Slide 12: Average net rate up 28% from 2021 through 2024 driven by improved contract terms
Average net rate up 28% from 2021 through 2024 driven by improved contract terms1 +28% 59.6 1.8 1.0 4.8 3.4 4.0 52.2 52.9 0.9 0.9 0.8 5.7 46.5 2021 Repricing Customer mix Trade mix 2022 Repricing Customer mix Trade mix 2023 Repricing Customer mix Trade mix 2024 1 The split between Customer mix and T
Slide 13: Earnings remain firm despite low H&H volumes
Earnings remain firm despite low H&H1 volumes Wallenius Wilhelmsen High & Heavy volumes (CBM)2 -35% • Our loaded H&H volumes declined in recent quarters • H&H and breakbulk remains our highest paying cargo • Despite the current weakness, we anticipate markets to improve in the latter part of 2025 or
Slide 14: A solid contract backlog reduces our market exposure over the next years
A solid contract backlog reduces our market exposure over the next years Estimated annual net revenue effect from contracts signed in Estimated development of PCC fleet (>2000 CEU)1 2024 (assume evenly spread)2 Fleet size BoP Deliveries Candidates for retirement HMG Other customers 2024 shipping rev
Slide 15: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 15
Slide 16: Stable activity level in Logistics with EBITDA slightly down on product mix
Stable activity level in Logistics with EBITDA slightly down on product mix US Auto and Terminals volumes Revenue & EBITDA margin Million units • Positive effects from higher US auto 137 146 146 138 137 sales in quarter Auto 5.1 4.9 4.8 +2% 15% 12% 15% 15% 15% • OEM production cuts, inventory 3.7 3.
Slide 17: We have a sizable land-based presence in Mexico and Canada
We have a sizable land-based presence in Mexico and Canada Well-positioned for potential growth in US production Land-based footprint in North America • US tariffs may impact our Logistics operations both positively and negatively • Internal US volumes may increase, and we may see additional seaborn
Slide 18: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 18
Slide 19: Forefront of shipping companies validating near-term and net-zero climate targets by SBTi
We are in the forefront of Shipping companies validating near-term and net-zero climate targets by SBTi Climate targets (base year 2022) 2030 2040 Validated by SBTi Reduction of absolute scope 1 GHG emissions from logistics operations 42 % 90 % Reduction of absolute WTW scope 1 and 3 GHG emissions f
Slide 20: Committed to safe and sustainable operations
Committed to safe and sustainable operations LTIF1 down QoQ in Logistics and Shipping CO2e intensity ahead of target for 20242 CO2 intensity target Actual CO2 intensity 2022 2023 2024 Target LTIF Shipping 31 30.4 per million man-hours 0.38 0.56 0.41 0.75 30 29.3 exposed 30.4 29 28.1 LTIF Logistics 2
Slide 21: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 21
Slide 22: FY 2024 Financial highlights
FY 2024 Financial highlights USDm, except per cent, per share and multiples1 Strong fundamentals Solid balance sheet Long-term value creation Revenue Net debt ROCE >8% 5,308 1,758 19.9% (5,149 / +3%) (2,007 / -12%) (17.9%3) Adj. EBITDA Cash Equity ratio >35% 1,901 1,393 39.5% (1,807 / +5%) (1,705 /
Slide 23: Financial highlights – Q4 2024
Financial highlights – Q4 2024 USDm, except per share, per cent and multiples Q3-24 Q4-24 Financial targets1 ROCE > 8% Revenue 1 353 1 341 +2.1 19.9% +0.4 Adj. EBITDA 503 452 Equity ratio > 35% Operating cash flow 554 413 +3.5 39.5% +5.1 Cash 1 829 1 3932 Leverage ratio < 3.5x -0.2 Net debt
Slide 24: Q4 Segment performance
Q4 Segment performance USDm, unless otherwise noted Revenue Adj. EBITDA Comments Adj. EBITDA EBITDA margin 1 281 1 255 1 359 1 353 1 341 507 503 • Revenue ended almost flat QoQ 454 438 452 Group • Reduced Shipping volume was a key reason for the decline in 35% 37% 37% 35% 34% adj. EBITDA QoQ • EBITD
Slide 25: Revenue and adjusted EBITDA down QoQ
Revenue and adjusted EBITDA down QoQ -12 1 353 • Revenue down QoQ on volume and BAF • Negative volume effect partly offset by higher -42 -63 30 achieved rates per cbm -24 7 42 2 -7 USDm • Fuel surcharges ended down QoQ on lower 1 341 1 311 bunker prices • Revenue and cost increased due to a non-cash
Slide 26: Liquidity remains solid after USD 451m of dividends and USD 140m debt reduction
Liquidity remains solid after USD 451m of dividends and USD 140m voluntary reduction in drawn debt Comments -24% (19) (17) (2) (72) 22 (45) • Q4 operating cash flow of USD 413m, 452 representing cash conversion of ~91%1 (283) 1 829 (20) 0 • Net CAPEX items relate to newbuilds, drydock, and other ass
Slide 27: USD 1.24 per share to be paid in dividend for H2 2024
USD 1.24 per share to be paid in dividend for H2 2024 Dividend history (USD/share)1 Tranche 1 Extraordinary dividend Total dividend for 2024 • Dividend of USD 1.24/share consists of 50% of H2 Tranche 2 Free cash flow to equity corresponds to 161% of net profit and an extraordinary element of USD fre
Slide 28: Remaining capex commitments of USD 1.5bn linked to our 14 newbuildings
Remaining capex commitments of USD 1.5bn linked to our 14 newbuildings Current payment schedule newbuilding program (USDm) • Following the declaration of two options and 240 upsizing of vessels, our newbuilding program 240 Capex (USDm) consists of 14 vessels with delivery in the 220 period 2026 thro
Slide 29: The group maintains a robust balance sheet and strong liquidity position
The group maintains a robust balance sheet and strong liquidity position Balance Sheet per end Q4-24 Debt Maturity Profile Comments USD billion USD million • Equity ratio increased to 39.5% 694 657 • Net debt increased QoQ to USD 1.8bn Assets Equity & 621 176 due to reduced cash Liabilities 185 507
Slide 30: Financing our net-zero 2040 commitment – new sustainable financing framework
Financing our net-zero 2040 commitment – new sustainable financing framework • We need to invest in fleet renewal, trucks, and equipment, while transitioning to low-carbon fuels to achieve net-zero by 2040 • Our new green and sustainability-linked financing framework invites investors and lenders to
Slide 31: Agenda
Agenda 1. Shipping update 2. Logistics update 3. Sustainability update 4. Financial update 5. Prospects & Q&A 31
Slide 32: Prospects
Prospects Based on the current market situation and recent contract renewals, combined with heightened market and geopolitical uncertainty, we expect our adjusted EBITDA for 2025 to be at least in line with, or up to 10% above, what we reported in 2024. We anticipate that the second half of 2025 wil
Slide 33: Q&A
Q&A 33
Slide 34: Thank you!
A © Wallenius Wilhelmsen Thank you!