Wilh. Wilhelmsen ASA First quarter 2016 Wilh. Wilhelmsen ASA /// - - PowerPoint PPT Presentation

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Wilh. Wilhelmsen ASA First quarter 2016 Wilh. Wilhelmsen ASA /// - - PowerPoint PPT Presentation

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> Wilh. Wilhelmsen ASA First quarter 2016 Wilh. Wilhelmsen ASA /// May 2016 Jan Eyvin Wang, President and CEO > Disclaimer This presentation contains forward-looking expectations which are subject to risk and uncertainties related

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  • Wilh. Wilhelmsen ASA

First quarter 2016

>

  • Wilh. Wilhelmsen ASA

/// May 2016

Jan Eyvin Wang, President and CEO

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> 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.

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> Agenda

  • Market development
  • Volume development
  • Prospects
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> Global light vehicle sales

Source: WWL

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> Caterpillar – Resource Industries* sales quarterly

Remaining soft

USD billion

Source: CAT *CAT Resource Industries: Customers using machinery primarily in mining, quarry, waste and material handling applications.

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>

20 18 16 14 12 10 22 2 8 4 6 Q2 13 Million Cbm Q2 10 Q1 10 Q4 09 Q3 09 Q2 09 Q1 09 Q2 11 Q1 11 Q4 13 Q4 10 Q3 10 Q3 13 Q4 12 Q3 11 Q1 13 Q1 14 Q2 14 Q3 14 Q3 12 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q4 14

  • 15%

Q4 08 Q2 12 Q1 12 Q4 11

  • 14%

Group ocean volume development

Sharp decline in Q1

Prorated ocean volumes – WW group (100%)

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> Group ocean cargo segment development

High and heavy

  • Slight pick up in volumes
  • Increased exports from Asia
  • Overall volumes remain at a low level

Auto

  • Seasonality
  • Reduced volumes in most main trades
  • New EUKOR OCC

Unprorated ocean volumes – WWL and EUKOR (100%)

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> Japanese auto exports in a downward trend

Units

Source: JAMA and KAMA

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> Auto deep sea market: Increasing fragmentation

1990 – mainly a Japanese-US/German affair

Million units Source: WWL

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> Auto deep sea market: Increasing fragmentation

2020 – much more fragmented and complex

Million units Source: WWL

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> Market outlook

  • Soft auto market expected to continue

– Earthquake in Japan only to have limited impact

  • No pick-up in high and heavy volumes

– Mining activity to remain sluggish – Construction and agriculture flat

  • Growth in logistics activities

– Positive trend to continue

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> Our response

Adjusting group tonnage to reduced volumes

  • Five group vessels taken out in Q1, of which three were recycled by WWASA
  • Two newbuildings to be delivered to WWASA in Q2

147 vessels 137 vessels 132 vessels

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> Prospects

The board expects volume growth to remain weak over the next period, with continued pressure on margins. The approved demerger of Den Norske Amerikalinje AS will reduce the future contribution from the logistics segment.

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  • Wilh. Wilhelmsen ASA

First quarter 2016

>

Wilh.Wilhelmsen ASA May 2016

Benedicte B. Agerup, CFO

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> WWASA Group – Key financials

Non recurring gain lifted operating profit

  • Total income reported +12% q-o-q, stable y-o-y
  • EBIT reported +90% q-o-q, +29% y-o-y
  • Non recurring gain of USD 80 million in the logistics segment
  • Sharp decline in ocean transported volumes
  • Three vessels recycled for WWASA’s account

200 100 700 600 500 400 300 596 Q1 608 609 +12% 545 Q4 Q3 558 Q2 USD mill

  • 50
  • 100
  • 150

100 50 150 +90% Q4 66 Q3

  • 134

Q2 USD mill 73 Q1 126 98 2016 2015

Total income Total EBIT

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>

USD mill 2016 Q1 2015 Q4 2015 Q1 2015 FY Operating income 515 541 573 2 243 Gain on sale of assets 80 26 29 Share of profits from JV's and associates 13 2 9 36 Total income 608 545 609 2 308 EBITDA 161 108 136 262 Depreciation and impairments (35) (41) (38) (160) EBIT 126 66 98 103 Financial income/(expense) (15) (13) (46) (128) Profit/(loss) before tax 111 53 52 (25) 1 1 1 Net profit 1) 104 82 56 (4) Earnings per share (USD) 0.47 0.37 0.26 -0.02

1) after minority interest

WWASA Group – Profit and Loss Q1 2016

Proportionate method

Q1 2016 includes non recurring net gain of USD 76.5 million

  • Gain of USD 80 million in logistics segment and loss of USD 3.5 million in shipping segment
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> WWASA Shipping – Key financials

Sharp decline in auto volumes, H/H stable at a low level

  • Total income reported - 18% q-o-q, - 22% y-o-y
  • EBIT reported - 55% q-o-q, - 53% y-o-y.
  • Lower fleet utilisation caused by sharp decline in cargo volumes
  • Pressure on freight rates continued
  • Non recurring loss of USD 3.5 million related to recycling of three vessels

600 500 400 300 200 100 USD mill 433

  • 18%

Q4 Q3 437 Q2 470 Q1 357 460 50 100

  • 50
  • 100
  • 150
  • 55%

USD mill Q4 62 Q3

  • 150

Q2 58 Q1 28 59 2016 2015

Shipping income Shipping EBIT

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> WWASA Shipping – EBIT margin

Underlying margin falling q-o-q

+ Lower G&A cost base

  • Reduced BAF surcharges

+ Reduced OPEX

  • Soft volumes
  • Suboptimal cargo and trade mix
  • Rate pressure

0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 14.0 % 16.0 % 18.0 %

  • 100

200 300 400 500 600 700 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 USD mill Operating revenue - Shipping EBIT margin EBIT margin adjusted

*) Q3 2015 EBIT margin -34.4%, large negative non-recurring item

*)

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> WWASA Logistics – Key financials

Non recurring gain of 80 million lifted operating profit

  • Total income reported + 116% q-o-q, + 67% y-o-y
  • EBIT adjusted +212% q-o-q, +43% y-o-y
  • USD 80 million gain related to WWL’s acquisitions in the US and South Africa and sale of entity in EU
  • Higher contribution from Hyundai Glovis and logistics entities in WWL q-o-q
  • Contribution from Hyundai Glovis discontinued 17 March 2016 following the demerger of NAL AS
  • Non recurring gain from demerger to be reported in Q2

300 100 150 50 200 250 USD mill 120 Q4 Q3 +116% 129 Q2 134 Q1 259 155 40 20 80 60 100 120 18 Q2 18 Q1 100 40 USD mill 6 Q4 Q3 +1 448% 2016 2015

Logistics income Logistics EBIT

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> WWASA

Committed CAPEX ending in Q2 2016

  • CAPEX program finalized Q2 2016 with

delivery of 2 post panamax vessels in April and June

  • Both vessels financed through sale

leaseback

  • Positive cash effect in Q2 of

USD ~ 35 million (at time of delivery)

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> WWASA Group – Financial income/(expense)

Stable net financial expenses q-o-q

  • Lower USD interest raters led to unrealized losses on interest derivatives
  • Gains on financial derivatives due to stronger USD and an increase in

bunker prices

Proportionate

USD mill 2016 Q1 2015 Q4 2015 Q1 2015 FY Net financial items 1.0 2.5 7.8 (6.3) Net interest expenses (22.8) (23.5) (22.6) (91.4) Interest rate derivatives - unrealised (14.4) 19.7 1.4 24.3 Net financial - currency 20.1 (8.5) (33.4) (48.7) Net financial derivatives bunkers 0.7 (3.7) 0.7 (6.3) Financial income/(expense) (15.4) (13.5) (46.1) (128.3)

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> WWASA Group – Balance Sheet

Strong balance sheet

Equity

Financial asset held for distribution related to demerger of NAL (Hyundai Glovis)

USD mill Assets Non current assets

2,628

78%

2,925

89% Financial assets held for distribution

349

10%

n/a

Current assets (excl liquid funds)

65

2%

24

1% Liquid funds

338

10%

349

11% Total assets

3,380

100%

3,299

100% Equity & liabilities Equity

1,762

52%

1,655

50% Non current interest-bearing debt

1,125

33%

1,135

34% Other non current liabilities

222

7%

225

7% Current liabilities

270

8%

285

9% Total equity and liabilities

3,380

100%

3,299

100% 31.03.2016 31.12.2015

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>

50 100 150 200 250 300 350 2016 152 USD million 2021 -> 346 2020 67 2019 343 2018 285 2017 106

WWASA Group – interest bearing debt

Refinancing of balloons in 2018/2019

Banks Bonds Export financing

  • Ordinary instalments of approx.

USD 20 million in Q1.

  • Bond maturity in March of approx.

USD 15 million financed from cash position.

  • Bond maturity in November 2016 of
  • approx. USD 70 million also to be

financed from cash position.

  • Delivery of MV Theben in April,

financed through sale leaseback

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> WWASA Group – Liquidity development

Continued high liquidity buffers

102 12 21 13 37 137 13 450 500 400 350 Proceeds from sale

  • f vessels

USD mill Liquidity Q1 2016 338 Other Interest Capex Net financing JVs/ associates EBITDA*) Liquidity Q4 2015 349

*) Equity

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> WWASA Group – Semi-annual dividend per share

4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 NOK/share H1 2016 H2 2015 0.50 H1 2015 1.00 H2 2014 1.00 H1 2014 1.00 H2 2013 0.75 H1 2013 4.00 H2 2012 1.00 H1 2012 0.65 H2 2011 0.50 H1 2011 0.50 0.00

  • No dividend to be paid in

Q2 2016 for the fiscal year 2015

  • Demerger of NAL

(Hyundai Glovis) to visualize values for shareholders

  • Substatial lift in share

price of WWASA following announcement

  • f demerger
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Thank you!

>

www.wilhelmsenasa.com