Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — SEB Nordic Seminar 2021
22 slides from Wallenius Wilhelmsen Asa's conference presentation, January 2021
Slide 1: Sustainable logistics for a world in motion - SEB Nordic Seminar 2021
Sustainable logistics for a world in motion SEB Nordic Seminar 2021 January 4-8, 2021 Torbjørn Wist Chief Financial Officer
Slide 2: Investment highlights
Investment highlights Global market leader in the vehicle logistics segment Diversified business model with both ocean and landbased logistics Diversified and solid customer base with long-term contracts Strong cash position, resilient free cash flow and capital access Clear priority to strengthen b
Slide 3: Agenda
Agenda Wallenius Wilhelmsen in brief Business and financial update Market update Outlook
Slide 4: A history of innovation and adaptation
A history of innovation and adaptation Wilhelmsen Group American Roll-on Roll-off Carrier EUKOR o Merger creating Wallenius Wilhelmsen Logistics o Founded in Tønsberg, (ARC) o Formed as Wilhelmsen Group and ASA as a listed company incorporating EUKOR, Norway by Morten W. o Founded by Wilhelmsen Grou
Slide 5: A fully integrated logistics service provider for a world in motion
A fully integrated logistics service provider for a world in motion VALUE CHAIN AND PRODUCT OFFERING Landbased - Upstream Ocean Landbased - Downstream 3 2 1 1 2 3 DISTRIBUTION PLANT-BASED MARINE TERMINAL OCEAN TRANSPORTATION MARINE TERMINAL PORT-BASED DISTRIBUTION TO PORT TECHNICAL SERVICES SERVICES
Slide 6: Broad landbased services portfolio, with extensive and growing footprint
Broad landbased services portfolio, with extensive and growing footprint MARINE TERMINALS TECHNICAL SERVICES INLAND DISTRIBUTION MAIN CUSTOMERS AUTO HIGH & HEAVY Share of EBITDA* Services Share of EBITDA* Services Share of EBITDA* Services ▪ Stevedoring ▪ Accessory fitting ▪ Mix of assets and ▪ Cust
Slide 7: A strong base and mix of customers in the Ocean segment
A strong base and mix of customers in the Ocean segment AUTOMOTIVE HIGH & HEAVY AND BREAKBULK Share of CBM* Main customers Share of CBM* Main customers HIGH & HEAVY ~70% ~30% BREAKBULK *Average share of total cubic meters (“CBM”) volume last two years 7
Slide 8: The clear market leader in the Ocean segment
The clear market leader in the Ocean segment CURRENT FLEET BY OPERATOR GROUP FLEET CHARACTERISTICS – CAPACITY Total capacity, CEU1) Average max ramp capacity, tons Capacity, kCEU 900 873 300 800 250 WW Ocean 700 600 200 GRIMALDI 500 150 400 HAL K LINE EUKOR 300 100 MOL 200 50 NYK GLOVIS 100 0 0 Wall
Slide 9: Sustainable Logistics for a world in motion
Sustainable Logistics for a world in motion Our guiding light for future development and value creation 1 2 3 4 9
Slide 10: Steps on our journey to zero emissions
Steps on our journey to zero emissions IMO 2030: CO2 emissions reduction ≥ 40% by 2030 vs 2008 levels 10
Slide 11: Continued focus on driving sustainability – a journey to zero
Continued focus on driving sustainability – a journey to zero DAY TO DAY ADVANCED WEATHER NOVEL BIO-FOULING DIGITALISATION OF FLEET ROUTING MANAGEMENT TECHNIQUES Gradual and continuous reduction in emissions driven by innovations to decrease fuel consumption TOWARDS ZERO GREEN RECYCLING LIGNIN ETHAN
Slide 12: Agenda
Agenda Wallenius Wilhelmsen in brief Business and financial update Market update Outlook
Slide 13: Decisive actions in the face of Covid-19
Decisive actions in the face of Covid-19 ○ Cost management measures ○ Managing fleet through reduced speed, idling and lay-up, recycling, redelivery of chartered vessels ○ Employee furloughs and salary cuts ○ Cash enhancing measures ○ CAPEX reduced to critical maintenance, delayed growth CAPEX and c
Slide 14: Volumes and revenues remain impacted by COVID-19 but improving in Q3
Volumes and revenues remain impacted by COVID-19 but improving in Q3 RESULTS (USDm) KEY FINANCIAL METRICS Total revenue Adjusted EBITDA ROCE (%)1 954 -2.8 697 213 2.5 Group 606 152 +5.2 104 Q3’19 Q2’20 Q3’20 Cash (USDm) Q3’19 Q2’20 Q3’20 +88 773 188 600 +61 Ocean 495 545 129 104 Equity ratio (%) Q3’
Slide 15: Solid balance sheet and strong liquidity position
Solid balance sheet and strong liquidity position COMMENTS BALANCE SHEET 30.09.2020 LIQUIDITY POSITION 30.09.2020 USD billion USD million • Liquidity strengthened during COVID-19 • Net proceeds ~USD 150m from bond issue Assets Equity & Liabilities • Support from banks, incl. instalment 7.5 7.5 882 h
Slide 16: Clear priority to strengthen balance sheet to return to the long term dividend policy
Clear priority to strengthen balance sheet to return to the long term dividend policy RESILIENT FREE CASH FLOW, UTILIZED TO …1,2 …REACH LONG TERM FINANCIAL PRIORITIES USD million • A priority to reduce NIBD/EBITDA from the current 5.9x 200 178 178 • Reduction of NIBD has been a focus since the merge
Slide 17: Agenda
Agenda Wallenius Wilhelmsen in brief Business and financial update Market update Outlook
Slide 18: Solid LV sales and production rebound during Q3
Solid LV sales and production rebound during Q3 Global LV sales and production quarterly walk, 2020 and 2021 figures compared to 2019 Stimulus, auto trend level struggles to Compared Stimulus, recover to 2019 Renewal of stimulus China sales restrictions Q3 2020 Deepsea vs 19 cautiously lifted Global
Slide 19: Strong manufacturing rebound continues to support machinery trade recovery
Strong manufacturing rebound continues to support machinery trade recovery MARKET STATUS MACHINERY SALES CONSENSUS ESTIMATES Sales3 Sales (USD b) (USD b) Machinery sales Economic stimulus -6% 160 450 Retail sales have inflected for construction, Unprecedented stimulus packages at different 400 minin
Slide 20: Deep sea fleet adjusting to the market situation
Deep sea fleet adjusting to the market situation 20 vessels scrapped YTD Q3 2020*, while 13 vessels remain in the orderbook** Vessel age distribution # vessels for seaborn LV and HH transport 67 68 46 vessels built 60 62 between 1983 and 1997 49 41 41 37 36 32 23 22 24 26 23 26 18 19 15 14 15 8 7 7
Slide 21: Agenda
Agenda Wallenius Wilhelmsen in brief Business and financial update Market update Outlook
Slide 22: Focused on long-term strategy and financial priorities
Focused on long-term strategy and financial priorities ▪ Social distancing at work and wellness support ▪ Safe crew changes COVID-19 ▪ Dynamically matching fleet to volume demand ▪ Strong cash position and access to a broad range of capital sources ▪ Clear priority to strengthen balance sheet and re