Wilh. Wilhelmsen ASAFourth quarter 2016
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Jan Eyvin Wang, President and CEOWilh.Wilhelmsen ASA 09 February 2017
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• Developments during the
fourth quarter
• Merger update
• Outlook
Disclaimer
This presentation contains forward-looking expectations which are subject to risk and uncertainties related to economic and market
conditions in relevant markets, oil prices, currency exchange fluctuations etc. Wilh. Wilhelmsen ASA group undertake no liability and make
no representation or warranty for the information and expectations given in the presentation.
Agenda
3
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16 24115 215
16 743
15 475
18 27118 034
19 385
18 230
19 56018 708
20 535
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
22 000
Group ocean volume developmentTotal volumes up 7% in the fourth quarter, partly seasonal
Prorated ocean volumes – WW group (100%)
1 000 CBM
-11% +7%
2-14 3-14 4-14 1-15 2-15 3-15 4-15 1-16 2-16 3-16 4-16
4
>
40
50
60
70
80
90
100
110
120
130
20
08
-Q1
20
08
-Q2
20
08
-Q3
20
08
-Q4
20
09
-Q1
20
09
-Q2
20
09
-Q3
20
09
-Q4
20
10
-Q1
20
10
-Q2
20
10
-Q3
20
10
-Q4
20
11
-Q1
20
11
-Q2
20
11
-Q3
20
11
-Q4
20
12
-Q1
20
12
-Q2
20
12
-Q3
20
12
-Q4
20
13
-Q1
20
13
-Q2
20
13
-Q3
20
13
-Q4
20
14
-Q1
20
14
-Q2
20
14
-Q3
20
14
-Q4
20
15
-Q1
20
15
-Q2
20
15
-Q3
20
15
-Q4
20
16
-Q1
20
16
-Q2
20
16
-Q3
20
16
-Q4
Index
Cargo Type per quarter,
WW ASA ship operating companies*)
Auto (cbm)
H&H (cbm)
*) Unprorated ocean volumes – WWL and EUKOR (100 %)
Group ocean cargo segment developmentBoth auto and high&heavy volumes up in the fourth quarter
5
> Merger updateOn track for April completion
• Merger approved by owners’ extraordinary general meetings in
January. Creditor period expires end March.
• Awaiting formal regulatory approvals. China and Japan pending.
• Organisational structure being planned
• Completing planned in April 2017
• Wallenius sell-down of 43 million Incremental Shares commences
thereafter
– At least 25 % within four weeks after Completion of merger
– Remaining no later than three weeks after second quarter reporting of WWLASA
• Wilhelmsen and Wallenius to end up with 38% each
6
> Outlook
• Market
– Sentiment improving slightly
– Exports out of Asia largely stable
• Group tonnage
– Order book of six newbuildings
– Redelivery capacity ten vessels
during 2017, two in 2018
– Balanced through 2017
• Political uncertainty
7
> Prospects
With continued rate pressure, the volume decline appears to have bottomed out and the board expects a soft volume recovery in the
first half of 2017.
In addition, the board expects the proposed merger and the
following effects, to have long-term positive impact for the group’s competitiveness.
Wilh. Wilhelmsen ASAFourth quarter 2016
>
Wilh.Wilhelmsen ASA 09 February 2017 Benedicte B. Agerup, CFO
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• Total income reported +8% q-o-q, -11% y-o-y
• EBIT reported -87% q-o-q, -94% y-o-y
• Negative non recurring items in Q4 2016, mainly related to additional provision anti trust
• Ocean transported volumes increased by 7%
• Improved contribution from logistics segment q-o-q
0
500
400
300
200
100
900
800
700
600
827
559
Q2
508450
Q1
571525
+8%
Q4Q3
418
522
USD million
500
400
300
200
100
0
-100
-200
-87%
Q4
4
66
Q3
32
-134
Q1
12698
Q2
417
73
USD million
20162015Total income Total EBIT
WWASA Group – Key financialsUnderlying income and results improved q-o-q
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31
533
50
65
80
60
55
0
75
40
70
45
Pension
1
Severance packages
Anti trust provision
EBITDA Q4 adjusted
EBITDA Q4 reported
43
Cost allocation
Ocean
USD million
Cost allocation
LBO
80
WWASA Group – non recurring itemsAdditional anti trust provision negatively impacting earnings
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USD million 2016 Q4 2016 Q3 2016 2015 2015 Q4
Operating income 450 418 1,751 2,095 504
Gain on sale of assets 455 29 2
Share of profits from JV's and associates 13 36 2
Total income 450 418 2,219 2,159 508
EBITDA 43 69 728 262 108
Depreciation and impairments (38) (37) (148) (160) (41)
EBIT 4 32 580 103 66
Financial income/(expense) 0 0 (37) (128) (13)
Profit/(loss) before tax 4 32 543 (25) 53
1 1 1 1 Net profit
1) (21) 25 500 (4) 82
Earnings per share (USD) (0.09) 0.11 2.27 -0.02 0.37
1) after minority interest
• Total income adjusted +8% q-o-q and -11% y-o-y
• Total EBIT adjusted +30% q-o-q and -35% y-o-y
WWASA Group – Profit and Loss Q4 2016Proportionate method
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• Total income reported +8% q-o-q, -16% y-o-y
• EBIT reported -76% q-o-q, -90% y-o-y, negatively affected by non recurring items
• Increase in ocean transported volumes, mainly within the auto segment
• Net bunker cost stable for the quarter and compared with full year 2015
• Pressure on rates and unfavourable cargo and trade mix
600
500
400
300
200
100
0
357
Q3
470
372
Q2
437
365
Q1
433
337
USD million
+8%
Q4
460
100
0
50
-50
-100
-150
USD million
Q2
3858
Q1
28
59
-76%
Q4Q3
6
62
-150
26
2015 2016
Shipping income Shipping EBIT
WWASA Shipping – Key financialsIncrease in both auto and HH volumes
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+ Lower G&A cost base - Suboptimal cargo and trade mix
+ Reduced OPEX - Rate pressure
+ Increased volumes
*) Q3 2015 EBIT margin -34.4%, large negative non-recurring item
*)
WWASA Shipping – EBIT marginImproved underlying EBIT margin q-o-q
14
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180
160
140
120
100
80
60
40
20
0
+4%
Q4
9283
Q3
8993
USD million
Q2
8896
Q1
175
117
0
20
80
60
40
100
120
Q4
66
-17%
Q2
818
USD million
Q1
100
40
Q3
818
20162015
Logistics income Logistics EBIT
WWASA Logistics – Key financialsImprovement in underlying results q-o-q
• Total income reported +4% q-o-q, +11% y-o-y
• EBIT reported -17% q-o-q, stable y-o-y
• Reallocation of costs between shipping and logistics segment recorded in Q4
• Underlying results improved q-o-q
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• Positive return from investment portfolio
• Unrealised gains on financial instruments
• Realised losses on hedging contracts in the fourth quarter, particularly connected
to repayment of bond debt in NOK
Proportionate
USD million 2016 Q4 2016 Q3 2016 FY 2015 FY 2015 Q4
Net financia l i tems 7.8 5.2 18.3 (6.3) 2.5
Net interest expenses (24.4) (24.7) (98.0) (91.4) (23.5)
Interest rate derivatives - unrea l i sed 30.0 10.6 25.1 24.3 19.7
Net financia l - currency (15.8) 8.9 10.1 (48.7) (8.5)
Net financia l derivatives bunkers 2.1 (0.1) 7.1 (6.3) (3.7)
Financial income/(expense) (0.3) 0.0 (37.4) (128.3) (13.5)
WWASA Group – Financial income/(expense)Low net financial expenses
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USD million
Assets
Non current assets 2 708 90 % 2 925 89 %
Current assets (excl liquid funds) 22 1 % 24 1 %
Liquid funds 283 9 % 349 11 %
Total assets 3 013 100 % 3 299 100 %
Equity & liabilities
Equity 1 435 48 % 1 655 50 %
Non current interest-bearing debt 1 205 40 % 1 135 34 %
Other non current liabilities 169 6 % 225 7 %
Current liabilities 204 7 % 285 9 %
Total equity and liabilities 3 013 100 % 3 299 100 %
31.12.2016 31.12.2015
Equity
• NAL AS (including Hyundai Glovis ownership) demerged in 2016
• 2 new vessels delivered 2016
WWASA Group – Balance sheetContinued strong balance sheet
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0
50
100
150
200
250
300
350
400
450
USD million
74
2020
83
2019
307
2018
292
2017
115
2022 ->
449
2021
Export financing
Financial lease
Banks
Bonds
• Ordinary instalments of approx
MUSD 35 in Q4
• Bond maturity in November 2016 of
MUSD 67 financed from cash position
• Realised loss on cross currency
hedge of MUSD 18
WWASA Group – Interest bearing debtBalloons to be refinanced in 2018/2019
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105
18
28
15
11
16
14
360
380
340
320
300
280
0
420
440
460
400
JVsEBITDA*) Other
283
Liquidity Q4 2016
USD million
Dividend received from JV’s
Other financial
derivatives
Interest and
interest
derivatives
Capex
3
Net financing
Liquidity Q3 2016
411
*) Equity
WWASA Group – Liquidity developmentRepayment of debt reduced liquidity
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