Wilh. Wilhelmsen Holding ASAThird quarter 2019
November 2019
Highlights
• Positive EBITDA development
• Revenue growth and margin improvement for maritime services
• Further uplift for supply services
• Strong contribution from Wallenius Wilhelmsen
• Reduction in Hyundai Glovis value
• Buyback of own shares
Post quarter event
• Second dividend of NOK 2,50 per share
Third quarter 2019
1
Maritime
services
Supply
services
Holding/
Investm.
Elim./
discont. Group
USD mill
- unless otherwise indicated Q3'19 Q3'19 Q3'19 Q3'19 Q3'19
Total income 150 69 3 -2 220
- of which operating revenue 149 69 3 -2 219
- of which gain/(loss) on sale of assets 1 0 0 0 1
EBITDA 31 15 -4 -1 42
Operating profit/EBIT 24 5 -5 0 24
Share of profits from associates 1 4 13 0 18
Change in fair value financial assets 0 0 -37 0 -37
Other financial income/(expenses) -18 -5 3 0 -20
Tax income/(expenses) -2 -1 3 0 -2
Profit/(loss) from continued operations 5 2 -25 0 -18
Discontinued operations 0 0 0 0 0
Profit/(loss) for the period 5 2 -25 0 -18
Profit/(loss) to owners of the parent 5 2 -14 0 -7
EPS (USD) -0,15
Other comprehensive income -43
Total comprehensive income -61
Total comprehensive income owners of parent -47
Total assets 852 677 1 764 -37 3 256
Equity parent 191 153 1 515 0 1 859
Total equity 189 206 1 672 0 2 068
Equity ratio 22 % 30 % 95 % 0 % 64 %
Group result lifted by strong EBITDA and profit from associates
USD 7 million net loss in Q3’19 due to non-cash financial loss
Total income up 6% from previous quarter
USD 42 million EBITDA
• Revenue growth and margin improvement
USD 18 million share of profit from associates
• Mainly Wallenius Wilhelmsen ASA
USD 57 million net financial loss
• Reduction in Hyundai Glovis value
• Unrealised FX loss from appreciation of USD
USD -0.15 EPS
2
Improved operating performance for maritime services
Maritime services - total income and adjusted EBITDA margin *)
0%
5%
10%
15%
20%
25%
0
100
50
150
250
Q3
’16
Total income
USD mill
EBITDA
margin (adj.)
Q3
’17
21%
Q3
’18
Q2
’19
Q3
’19
+6% +2%
Total income - discontinued operation and gain/(loss) on sale of assets
Adj EBITDA margin
Total income - continued operation
Adj EBITDA margin - excl. IFRS 16 (from Q1’19)
*) Margin adjusted for main non-recurring items:
Q4’16: Sales gain and transaction/restructuring cost
Q1’17-Q2’18: Drew acquisition cost
Q2’19 Property sales gain
Income up 2% q-on-q
• Increased sale of marine products within ships service, partly
due to IMO 2020 transition
• Ship management income lifted by increase in vessels on full
technical management and new offshore wind activities
Reported EBITDA up 9% q-on-q
• EBITDA adjusted for Q2 sales gain up 35% q-on-q
• EBITDA margin of 21%
USD 31 million EBITDA in Q3’19
Main non-recurring gain
Main non-recurring loss(size indicates USD effect)
3
Seasonal upswing for supply services
Supply services - total income and adjusted EBITDA margin *)
0%
10%
20%
30%
40%
50%
0
20
40
60
80
100
Q3’18Q4 ’17
Total income
USD mill
EBITDA
Margin (adj.)
22%
Q2 ’19 Q3 ’19
-3% 15%
Income up 15% q-o-q
• Continued strong activity at Norwegian supply bases
• Increased income from NorSea Wind and activities in Denmark
EBITDA up 5% q-o-q
USD 4 million share of profit from associates
USD 15 million EBITDA in Q3’19
Sales gain
Adj. EBITDA margin - excl. IFRS 16 (from Q1’19)
Adj. EBITDA margin
Total income (excl. sales gain)
*) Margin adjusted for sales gain:
Q2’18: USD 2 million sales gain
Q4’18: USD 1 million sales gain
Q1’19: USD 6 million sales gain
Sales gain (size indicates USD effect)
4
Margin improvement offsetting lower revenue in Wallenius Wilhelmsen
Wilhelmsen share of profit USD 13 million
5
Financial assets remain exposed to Hyundai Glovis share price
Hyundai Glovis share price down 3% in KRW
• Up 20% Y-o-Y
Qube Holding share price up 5% in AUD
• Up 17% Y-o-Y
Most financial asset values hit by appreciation of USD
Cash balance reduced due to USD 30 million share buyback
USD 65 million reduction in holding and investments’ financial assets in Q3’19
51 44
94 10298
110 105106
384
462
432
144
167
155
0
100
200
300
400
500
600
700
800
900
MUSD
30.09.2018 30.06.2019
25
30.09.2019
817784
881+33 -65
Hyundai Glovis (equity holders of Wilhelmsen)
Hyundai Glovis (non-controlling interests)
Cash
Current financial investments
Other non-current financial assets
Financial assets in holding and investments segment
6
Positive cash from all operating activitiesReduced cash balance following USD 30 million buyback own shares
150
133
16
16 32
15
9
Dividend
and
buyback
2
Operating
maritime
services
30.06.2019 Operating
supply
services
Investing
activities
Operating
other
6
Other
financing
30.09.2019Net debt
Cash from
operating activities
Cash from
financing activitiesCash from
investing activities
Cash flow(MUSD)
7
Solid balance sheet
Wilhelmsen group total assets and equity ratio *)
Equity ratio of 64%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
1,000
2,000
3,000
4,000
5,000
6,000
USD mill
Q1’17 Q4’18
Equity ratio
Q4’17Q2’17Q3’16 Q4’16 Q3’17 Q1’18 Q3’19Q2’18 Q3’18 Q1’19 Q2’19
64%
Total assets Equity majorityEquity non-controlling Equity ratio
Key figures
Total assets USD 3 256 million (down 4% q-on-q)
Total equity USD 2 068 million (down 4% q-on-q)
*) Impacted by change in corporate structure:
Q2’17: Wallenius Wilhelmsen ASA merger
Q3’17: Consolidation of NorSea Group
8
Healthy liquidity and debt repayment profile
Maturity profile – outstanding debt(USD million)
Liquidity 1)
(USD million)
30
285
Year 4Year 1 Year 2
83
>4 yearsYear 3
38
248
Leasing (IFRS 16)
Maritime services (ex. lease)
Supply services (ex.lease)
Holding and investments (ex lease)
123102
6
Holding and investments Maritime services Supply services
70
228385
Outstanding debt 2)
(USD million)
1) Cash and cash equivalents and current financial investments
2) Excluding intercompany debt
USD 452 million in group NIBD (net interest-bearing debt)
9
Second dividend of NOK 2.50 per share payable 26 November
Dividend payments 1)
0
1
2
3
4
5
6
7
0.00
1.00
5.00
2.00
4.00
3.00
6.00
7.00
NOK/share
2015
Yield (%)
2016 2017 2018 2019
2nd payment
1st payment
Dividend yield (right axis)
1) Yield calculated based on previous year median closing price for WWI and WWIB share
First dividend of NOK 2.50 per share paid 15 May
Cash to shareholders
0
10
20
30
40
50
60
70
2015
USD
Million
20192016 2017 2018
Buy back
Dividend
10
Outlook
The board expects a stable development of underlying
operating performance for the combined group activities,
but with normal seasonal variations.
Wilhelmsen is exposed towards global trade. Potential
introduction of further tariffs and restrictions continues to
create uncertainties. Wilhelmsen retains its robustness to
meet such eventualities.
11
Supplementary slides –Third quarter 2019
Maritime servicesShips service
Ship management
Supply services
NorSea Group
Holding and investmentsWalleniusWilhelmsen ASA
Treasure ASA
Financial investments
12
Ships serviceWilhelmsen Ships Service is a global provider of standardised product brands and service solutions to the maritime industry, focusing on marine products, marine chemicals, maritime logistics and ships agency
Ships service is fully owned by Wilhelmsen
• Total income up 3% from the second quarter following higher
sale of marine products, partly related to IMO 2020.
• Improved EBITDA supported by increased income and further
improvement in the operating margin.
Q3’19 highlights
129135
131
139 140 138131 131 133
130134
0
20
40
60
80
100
120
140
160
180
200
USD mill
158
Q3’16 Q3’18Q3’17 Q3’19Q2’19
149+2% +3%
Income safety business (incl. sales gain) - sold Q4’16
Total income - ex safety business
Total income
13
Ship managementWilhelmsen Ship Management provides full technical management, crewing and related services for all major vessel types, and includes 50% of NorSea Wind
Ship management is fully owned by Wilhelmsen
• Operating income up, supported by an increase in ships on
full technical management and new offshore wind activities.
• EBITDA was also up when adjusting for the previous quarter
sales gain.
Q3’19 highlights
11
1211 11
11 1110
10 1011
10
0
2
4
6
8
10
12
14
16
18
20
Q3’17
USD mill
Q3’18Q3’16 Q2’18
6
Q3’19
16
15
+53% -5%
Total income (excl. material sales gain)
Material sales gain
NorSea Wind (50%)Total income
14
• Income up 14% from previous quarter, supported by continued
strong activity level at Norwegian supply bases and increased
income from NorSea Wind and activities in Denmark.
• EBITDA followed development in total income
Q3’19 highlights
NorSea GroupNorSea Group provides supply bases and integrated logistics solution to the offshore industry
Wilhelmsen owns ~75,2% of NorSea Group (as per 30 September 2019)
52
56
70 70
79
59
68
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
Mill. USD
Q2’19Q3’18Q4’17
6
Q3’19
54
-4% +14%
Material sales gain
Total income (excl. material sales gain)Total income
15
• Income 5% down from the second quarter and down 7% from the corresponding period last year.
• EBITDA up 1% from the first quarter, and well up from the corresponding period last year when adjusting for the IFRS 16 effect.
• EBITDA up year-over-year due to higher net freight per CBM, more efficient operations and lower net bunker cost for ocean segment.
• Declared second dividend of USD 0.06 per share
Q3’19 highlights
Wallenius Wilhelmsen ASAWallenius Wilhelmsen ASA is a global provider of shipping and logistics services towards car and ro-ro customers, and is listed on Oslo Børs
Wilhelmsen owns ~37,8% of Wallenius Wilhelmsen ASA (as per 30 September 2019)
Photo: Wallenius Wilhelmsen
477
627
784
937979
745
683
547 560
475
372
0
200
400
600
800
1,000
1,200
USD mill
Q3’16 Q3’17 Q3’19Q3’18 Q2’18
1.1551.134
-311 -103
Wallenius Wilhelmsen ASA
Wilh. Wilhelmsen ASA
Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen ASA
16
• USD 42 million loss from change in fair value of Hyundai Glovis
• Treasure ASA bought 465 000 own shares in the market,
reducing net outstanding shares excluding own shares to 217.3
million (total number of shares remained 217.8 million).
Wilhelmsen maintained a holding of 160 million shares in
Treasure ASA.
Q3’19 highlights
Treasure ASATreasure ASA holds a 12.04% ownership interest in Hyundai Glovis, and is listed on Oslo Børs
Wilhelmsen owns ~73.5% of Treasure ASA (as per 30 September 2019)
Photo: Hyundai Glovis
352
310
295305 307
281
331
255 251
214222
252243
0
100
200
300
400
USD mill
Q3’16 Q2’18Q3’17 Q3’18 Q3’19
-8 -9
Treasure ASA
Market value of Wilhelmsen’s investment in Treasure ASA
17
Financial investmentsFinancial investments include cash and cash equivalents, current financial investments and financial assets held by the parent and fully owned subsidiaries reported under the holding and investments segment
• USD 4 million in fair value gain from financial assets, partly
offset by USD 3 million currency loss reported under other
comprehensive income
• USD 2 million gain from investment management
Q3’19 highlights
Photo: Qube/Oslo Børs
22
106
0
100
200
300
400
Q3’17 Q3’19Q3’18
USD mill
Q3’16
267
Q2’18
260
226
251256
235247 250 248
302
241
203
219
98
-25 -22
Non-current financial investments
Current financial investments
Cash
Financial assets, investment portfolio and cash
18
wilhelmsen.com
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