Wallenius Wilhelmsen Asa · OSL:WAWI
Wallenius Wilhelmsen Asa — Wallenius Wilhelmsen Logistics — Q3 2017 Earnings Presentation
27 slides from Wallenius Wilhelmsen Asa's earnings presentation, Nov 8, 2017
Slide 1: Q3 Presentation
Q3 Presentation November 8th 2017 Craig Jasienski, President & CEO Rebekka Glasser Herlofsen, CFO
Slide 2: Agenda
Agenda Business Update Financial Performance Market and Business Outlook Summary and Q&A 2
Slide 3: Business Update
BUSINESS UPDATE by Craig Jasienski 3
Slide 4: Business update Q3 at a glance
Business Update Financial Performance Market and Business Outlook Summary and Q&A Business update Q3 at a glance… The positive development for Volume & Cargo mix continues Still some overcapacity and pressure on ocean rates Good contract coverage next few years, especially H&H Realization of synergi
Slide 5: The positive development for Volume & Cargo mix continues
Business Update Financial Performance Market and Business Outlook Summary and Q&A The positive development for Volume & Cargo mix continues Volume1) and cargo mix2) development Million CBM and % Comments Total prorated volumes Cargo mix (previous) Cargo mix • Volumes down 5% q-o-q, largely driven by
Slide 6: Seasonal reduction in volumes, but positive development from same period last year
Business Update Financial Performance Market and Business Outlook Summary and Q&A Seasonal reduction in volumes, but positive development from same period last year for all foundation trades EU - ASIA Asia - EU Atlantic Shuttle +11% -6% +2% -11% +4% -1% 3.2 3.0 3.2 2.7 2.8 2.9 2.8 2.9 2.9 Q3 ’16 Q2
Slide 7: Positive development in net freight/CBM due to trade/cargo mix
Business Update Financial Performance Market and Business Outlook Summary and Q&A Positive development in net freight/CBM due to trade/cargo mix Net freight / CBM development1) Indexed to 100 per Q2 2014 Comments • Net freight / CBM increased with 0.8% in the 105 third quarter compared with the last
Slide 8: Good contract coverage for H&H for the next few years
Business Update Financial Performance Market and Business Outlook Summary and Q&A Good contract coverage for H&H for the next few years Contract coverage for “top 10” H&H customers1 Percent of volumes 100 75 WWL + EUKOR 50 25 0 2 017 2 018 2 019 2 020 1) Based on 2017 budgeted volumes for WWL Ocean
Slide 9: Realization of synergies well on the way
Business Update Financial Performance Market and Business Outlook Summary and Q&A Realization of synergies well on the way… Confirmed and realized synergy development USD million Comments • About two thirds of the targeted annualized 100 synergies have been confirmed, through actions related to main
Slide 10: The positive development for landbased continues
Business Update Financial Performance Market and Business Outlook Summary and Q&A The positive development for landbased continues… • Continued strong volumes for technical services in North America, but less value-adding services coupled with congestion at certain plant locations pulled results dow
Slide 11: Financial Performance
Financial Performance by Rebekka Glasser Herlofsen 11
Slide 12: Consolidated results – third quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Consolidated results – third quarter 2017 Q3 2017 Q2 2017 Q3 2016 Comments (proforma)1) • Adjusted EBITDA was USD 193 million Total income 962 912 869 in the third quarter, up 2% q-o-q Operating expenses (774) (806) (7
Slide 13: Ocean segment – third quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Ocean segment – third quarter 2017 Total income and EBITDA ocean segment1, 2 USD million Comments • Ocean income was USD 775 million, down 3% Total income EBITDA compared with previous quarter Extraordinary items • EBI
Slide 14: Landbased segment – third quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Landbased segment – third quarter 2017 Total income and EBITDA landbased segment1,2) USD million Comments • Adjusted income was USD 199, up 4% q-o-q Total income EBITDA • Adjusted EBITDA was USD 24 million, down 9% Ext
Slide 15: Balance sheet review – third quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Balance sheet review – third quarter 2017 Unaudited Balance Sheet 30.09.2017 USD billion Comments • Total assets of USD 7.65 billion with an equity ASSETS EQUITY & LIABILITIES ratio of 35.5% (up from 34.7% in the secon
Slide 16: Cash flow and liquidity development – third quarter 2017
Business Update Financial Performance Market and Business Outlook Summary and Q&A Cash flow and liquidity development – third quarter 2017 Cash flow and liquidity development USD million 96 188 -18 -114 820 755 -30 -11 -45 Liquidity EBITDA Sale of CAPEX Net financing Interest and Taxes paid Other1 L
Slide 17: Project initiated to streamline legal and financial structure
Business Update Financial Performance Market and Business Outlook Summary and Q&A Project initiated to streamline legal and financial structure Target legal and funding structure Comments • Establish legal and funding structure consistent with business unit structure • Refinance 2018 and 2019 Wallen
Slide 18: Market and Business Outlook
Market and Business Outlook by Craig Jasienski 18
Slide 19: Light vehicle export in the third quarter up 0.4% q-o-q
Business Update Financial Performance Market and Business Outlook Summary and Q&A Light vehicle export in the third quarter up 0.4% q-o-q Global auto export per main production region1,2 Comments CAGR ’16-21 EUR APAC ME AF AM • Global light vehicle (LV) exports in the third quarter declined - 27% 0.
Slide 20: Construction segment strengthening, while Agriculture remains mixed
Business Update Financial Performance Market and Business Outlook Summary and Q&A Construction segment strengthening, while Agriculture remains mixed Construction machinery trade strengthening Agriculture machinery markets remain mixed Global construction and rolling mining equipment imports1, 12-17
Slide 21: Mining equipment deliveries continue to move up from the bottom
Business Update Financial Performance Market and Business Outlook Summary and Q&A Mining equipment deliveries continue to move up from the bottom Continued gains for commodity prices and machinery Comments and highlights Global mining equipment deliveries1 and iron ore price2, 09-18 • Global deliver
Slide 22: Replacement numbers increasing more rapidly in the medium term
Business Update Financial Performance Market and Business Outlook Summary and Q&A Replacement numbers increasing more rapidly in the medium term The number of trucks approaching replacement age is growing Comments Mining truck operational characteristics and operating fleet age distribution Yearly u
Slide 23: Gradually improving supply demand balance expected
Business Update Financial Performance Market and Business Outlook Summary and Q&A Gradually improving supply demand balance expected Shrinking net fleet growth is contributing to… …tightening supply-demand balance Average net fleet growth %, 2005-2019F Fleet utilization rate, 2015-19F 500 12% 4,5 15
Slide 24: Quarterly fun fact: WWL supports growing electrical auto sales
Business Update Financial Performance Market and Business Outlook Summary and Q&A Quarterly “fun fact”: WWL supports growing electrical auto sales The challenge - Sensitive, heavy industrial press from manufacturing site in Germany to new electric car plant in California - 49 breakbulk pieces - 2765
Slide 25: Summary and outlook
Business Update Financial Performance Market and Business Outlook Summary and Q&A Summary and outlook SUMMARY OUTLOOK Realization of synergies well under way; USD 100 The Ocean business is still faced with some million target is maintained overcapacity and pressure on rates Volume, cargo and trade m
Slide 26: Q&A
Q&A by Craig Jasienski and Rebekka Glasser Herlofsen 26
Slide 27: Thank you!
WALLENIUS WILHELMSEN LOGISTICS ASA Thank you!
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