Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Investor Day (2019)
49 slides from Wallenius Wilhelmsen Asa's investor day presentation, 2019
Slide 1: Capital Markets Day 2019
| \\ \ CAPITAL MARKETS DAY 2019. lq rs : ql
Slide 2: Capital markets day 2019 program
Wallenius Wilhelmsen ASA – Capital markets day 2019 program Market outlook Michael Hynekamp EVP and Chief Operating Officer WW Ocean and WW Solutions Decarbonisation Roger Strevens VP Head of Global Sustainability Digitalisation Simon White EVP and Chief Digital Officer Mats Amland VP Head of Transf
Slide 3: Market Outlook
Market Outlook Mike Hynekamp EVP and COO WW Ocean & WW Solutions
Slide 4: There is no doubt that the industry around us is changing
There is no doubt that the industry around us is changing… Electrification Mobility models Autonomy Flexible New entrants manufacturing Source: Market Insight WW 4
Slide 5: Light vehicle sales growth expected to see a CAGR of ~2.1%
Light vehicle sales growth expected to see a CAGR of ~2.1% going forward LV global sales, sales region, million units, 2018-26 +2.1% +2% +2% +3% +2% +3% 104.3 -4% 0% +2% 100.3 102.1 97.9 6.0 93.7 94.9 5.7 5.8 89.9 90.1 92.2 5.5 5.8 4.3 5.0 5.4 5.6 3.7 4.0 4.5 5.2 6.3 ME/Africa 4.7 4.8 5.0 6.4 6.4 4.
Slide 6: Forecasted growth in deepsea volumes in all key markets
Forecasted growth in deepsea volumes in all key markets Europe export +2.0% S Amr NA export China export South Asia 3.8 Japan/Korea +2.8% 3.3 Japan/Korea South Asia +12.5% ME/Africa Europe Japan/Korea 0.6 0.6 G China South Asia 1.7 ME/Africa 1.3 1.5 1.1 1.4 ME/Africa NA 0.5 0.4 G China 2019 2026 0.3
Slide 7: Chinese light vehicle export set to be ramped up to >1 million units/year
Chinese light vehicle export set to be ramped up to >1 million units / year Chinese LV export per consumption region 1000 units, 2017-26FC Comments on Chinese LV export Japan/Korea Europe • China largest production region globally, expected to South Asia increase from 26m in 2018 to 32m in 2026 1 02
Slide 8: North American light vehicle production and H&H sales show stable outlook
North American light vehicle production and H&H sales show stable outlook Vehicle processing Equipment processing LV production NA H&H Equipment OEM sales growth Mill units, 2018-24FC Analyst consensus est, 2019-21FC Caterpillar Inc. (CAT-US) Deere & Company (DE-US) +0.3% 17.0 16.8 16.8 17.0 16.5 16
Slide 9: Outlook for marine terminals is solid
Outlook for marine terminals is solid Terminals Terminals Terminals LV export and import NA LV export and import Europe LV export and import APAC Mill units, 2018-24FC Mill units, 2018-24FC Mill units, 2018-24FC Export Export Export Import Import Import +2.1% 12.3 11.8 11.3 11.1 11.0 11.1 11.2 +3.9%
Slide 10: We appear to be in the start of a Mining truck replacement cycle
We appear to be in the start of a Mining truck replacement cycle - Trucks commissioned during 2007/2008 are approaching theoretical replacement age The number of trucks that are approaching the end of their chassis life is steadily growing over the next years Large mining truck fleet characteristics
Slide 11: Global construction machinery demand expected to weaken through 2021
Global construction machinery demand is expected to weaken through 2021 before growing again in 2022 North American sales are believed to grow through 2022, European demand edging down, while the Chinese market is expected to once again decline strongly before improving in 2022 Global Sales of Const
Slide 12: The economic outlook for farmers is expected to be mixed
The economic outlook for farmers is expected to be mixed across key markets - In the US, direct government payments to affected farmers aim to soften the short-term blow of the ongoing trade war US farm profits expected to increase slightly in 2019 EU farmer income is expected to decline slightly ov
Slide 13: Recycling might pick up over the next 5 years
Recycling might pick up over the next 5 years - Potential for upward pressure on rates Fleet composition by year of build CEU capacity (>4000), Active by September 20191 CEU Capacity (1000) Active #Vessels # Vessels 400 Over the next 10 years 79 vessels 70 will reach replacement age 350 60 300 50 25
Slide 14: An unrivalled and agile global RoRo network
An unrivalled and agile global RoRo network to meet changing demand… WW Ocean trade routes EUKOR trade routes ARC trade routes Armacup trade routes Source: Market Insight WW 14
Slide 15: A global network of Landbased entities well positioned for future growth
… and a global network of Landbased entities well positioned for future growth In-plant vehicle processing centres In-plant equipment processing centres Terminals Vehicle processing centres Equipment processing centres Inland distribution networks WW Ocean trade routes EUKOR trade routes ARC trade r
Slide 16: Solid development expected for the next 5-7 years
Despite uncertainty in the short term we see solid development expected for the next 5-7 years and remain optimistic for horizon beyond Global trade coverage Advanced and flexible Solid network of Well-positioned to with diverse customer fleet landbased entities capitalize on trends and cargo mix In
Slide 17: Decarbonisation in shipping
Decarbonisation in shipping Indispensable industry, unprecedented challenge Roger Strevens VP Head of Sustainability
Slide 18: IMO regulatory targets
IMO regulatory targets Wider meaning… ○ Relative CO2 reduction of at least 40% ○ CAPEX and or OPEX? by 2030 compared to 2008 ○ Changes to service? ○ WW CO2 intensity 2008:2018 -32% ○ Competitive landscape? ○ Absolute reduction in total GHG of at least 50% by 2050 compared to 2008 ○ All of the above
Slide 19: Past to present
W Wallenius Wilhelmsen Past to present
Slide 20: Increase in economy of scale
Increase in economy of scale New vessels have been getting bigger… ….so the fleet average has been increasing 450000 Total 400000 7000 350000 6000 300000 5000 250000 6000-8000CEU+ 4000 200000 4000-5999CEU 1000-3999CEU 3000 Total 150000 100000 2000 50000 1000 0 0 2005 2001 2012 1998 1999 2000 2001 20
Slide 21: Panama canal expansion
Panama canal expansion 21
Slide 22: Other contributing factors
Other contributing factors 22
Slide 23: Toward 2030
Toward 2030… Digitalisation to extract Hull fouling management to No comment… for competitive efficiencies reduce inefficiencies reasons 23
Slide 24: Pushing progress
W Wallenius Wilhelmsen Pushing progress
Slide 25: Our approach to achieving progress
Our approach to achieving progress Take the initiative to Partner to find Engage in the Attract innovators position for the future Lean:Green solutions regulatory process to our industry 25
Slide 26: Progress imperatives: perspectives
Progress imperatives: 3 perspectives Incremental reduction Step improvement Final destination Business as usual Carbon neutral Zero emissions 26
Slide 27: What makes an innovation stack up?
What makes an innovation stack up? 27
Slide 28: NB: Shifting frame of reference
NB: Shifting frame of reference 28
Slide 29: 2020: Next-level transparency
2020: Next-level transparency ○ Addressing climate risk - TCFD based on SASB ○ Physical and transition risks ○ TCFD: the ‘what’, SASB: the ‘how’ ○ CDP: most widely used carbon reporting framework ○ SBT: top-down target setting approach ○ Will inform new GHG target setting 29
Slide 30: Into the future
W Wallenius Wilhelmsen Into the future
Slide 31: Partnership: when the total is greater than the sum of the parts
Partnership: when the total is greater than the sum of the parts 31
Slide 32: Wind assisted propulsion
Wind assisted propulsion ○ WPCC: Wind Assisted Car Carrier ○ Design development by Wallenius Marine ○ Concept feasibly assessment underway ○ Conclusions expected H1 2020 32
Slide 33: Introducing LEO: Lignin Ethanol Oil
Introducing LEO: Lignin Ethanol Oil ○ Natural polymer, byproduct of paper production ○ LEO: potential 2nd generation biofuel ○ Near carbon neutral, no sulphur ○ Heavy ‘drop-in’ fuel for existing fleet ○ Bench-top now, test engine ca. Q4 2020
Slide 34: Getting to zero 2030 – we're onboard
Getting to zero 2030 – we’re onboard ‘Accelerating maritime shipping's decarbonisation with the development and deployment of commercially viable deep sea zero emission vessels by 2030’ 34
Slide 35: Orcelle Award hosted by the Ocean Exchange
Orcelle Award hosted by the Ocean Exchange ○ Forum for accelerating sustainable innovation ○ Wallenius Wilhelmsen proudly sponsor ○ Helping close gap to zero emissions ○ In-water hull cleaning with capture ○ Flow battery technology ○ 2019 Orcelle Winner ○ Significant operational savings ○ Potential
Slide 36: Lean:Green #Leadershipping
Lean:Green #Leadershipping Thank you for your attention
Slide 37: Digitalisation
Digitalisation Simon White EVP and Chief Digital Officer Mats Amland VP Head of Transformation Office
Slide 38: Current Digital Focus Areas
Digitalisation Building the Foundation Re-imagining the supply chain together with our customers Current Digital Focus Areas Digitalising Operations Digital Acceleration & pilots Energy efficiency & Sustainability 38
Slide 39: Digital pilots
W Wallenius Wilhelmsen Digital pilots
Slide 40: Current activities – Digital Pilots
Current activities – Digital Pilots ○ Corporate Partnership ○ Digitisation of cargo survey ○ Digital Pilots initiated in the areas of ○ Cargo Risk and Biosecurity ○ Mixed reality training ○ Video AI – Safety and efficiency ○ Worker safety technology ○ Cargo measurement and yard management ○ Partners
Slide 41: Re-imagining the supply chain together with our customers
Re-imagining the supply chain together with our customers ○ Immediate opportunity to reduce emissions and lower costs by removing waste in the supply chain ○ From track and trace to the intelligent supply chain ○ Potential for the connected vehicle in the supply chain ○ Digitalised solutions support
Slide 42: Digitalising Operations, Energy efficiency & Sustainability
Digitalising Operations Energy efficiency & Sustainability
Slide 43: Data connectivity and data platform will form the basis for digital transformation
Data connectivity and data platform will form the basis for the digital transformation Application development AI/ML Digitalisation The process of considering how best to apply digitised Data analysis / science information to simplify Digital specific operations. Transformation The process of devisi
Slide 44: Vessel digitalisation has great potential to improve efficiency
Vessel digitalisation has great potential to improve efficiency across vessel, voyage and cargo Vessel Voyage Cargo Energy efficiency and bunker Voyage follow up and optimisation: optimisation: o Tonnage planning o Stowage and cargo optimisation o Energy Management o Bunker management o EDI, Customs
Slide 45: High frequency data opens up opportunities
High frequency data opens up opportunities through analysis and real time monitoring Energy efficiency Time series data 45
Slide 46: A real-world example: finding inefficiencies based on granular data
A real-world example: finding inefficiencies based on granular data - and taking corrective action 1 2 Thermopylae, abt. 26% above baseline Thalatta, abt. 13% above bassline Thermopylae before 3 4 Thermopylae after 46
Slide 47: Digitalisation benefits across the supply chain
Digitalisation benefits across the supply chain Enhanced Visibility Improved Efficiency Better Resilience Less Administration New Business Better Transport & Improved Utilisation Lower Emissions Opportunities Event Management 47
Slide 48: Wallenius Wilhelmsen
\\ Wallenius Wilhelmsen
Slide 49: Sustainable logistics for a world in motion
Sustainable logistics for a world in motion 8 Technical Distribution Marine Ocean Marine Technical = Distribution Dealer Services to Port Terminal Transportation _—‘Terminal Services from Port beg Factory Up-fitting Purchase De-fleeting 8 t~ Insurance Vehicle Disposal Auction & Ocean Distribution *