Wilh. Wilhelmsen ASA Second quarter 2016 Wilh. Wilhelmsen ASA 5 - - PowerPoint PPT Presentation

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Wilh. Wilhelmsen ASA Second quarter 2016 Wilh. Wilhelmsen ASA 5 - - PowerPoint PPT Presentation

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> Wilh. Wilhelmsen ASA Second quarter 2016 Wilh. Wilhelmsen ASA 5 August 2016 Jan Eyvin Wang, President and CEO > Agenda Developments in the second quarter Market outlook Prospects Disclaimer This presentation contains

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  • Wilh. Wilhelmsen ASA

Second quarter 2016

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  • Wilh. Wilhelmsen ASA

5 August 2016 Jan Eyvin Wang, President and CEO

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> Agenda

  • Developments in the second quarter
  • Market outlook
  • Prospects

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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> Group ocean volume development

Seasonal rebound in the second quarter

Prorated ocean volumes – WW group (100%)

16 797 15 515 18 271 18 034 19 385 18 230 19 560 18 708 20 535 2 000 4 000 6 000 8 000 10 000 12 000 14 000 16 000 18 000 20 000 22 000

1 000 CBM

2-14 3-14 4-14 1-15 2-15 3-15 4-15 1-16 2-16

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> Group ocean Foundation Trades’ share of total

Dropping in the second quarter, from a very high level

Prorated ocean volumes – WW group (100%)

1 000 CBM

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> Group ocean cargo segment development

Seasonal rebound in the second quarter, both for Auto and High & Heavy

*) Unprorated ocean volumes – WWL and EUKOR (100 %)

High & Heavy

  • Seasonality
  • Mainly driven by agriculture segment
  • Overall volumes still at a low level

Auto

  • Seasonality
  • Increased volumes in most main trades
  • European imports strong
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> On-going anti trust investigation

  • WWL

– reached a settlement with the US DoJ in July, whereby they will pay USD 98.9 million in fines

  • WWASA share 50 %
  • No accounting effects for WWASA
  • EUKOR

– not fined by the US DoJ

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> Market outlook

Increased uncertainty and volatility

  • Brexit
  • US election
  • Geo political instability
  • Protectionism

Leading to a soft volume development

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> Our response

  • Creating a more agile structure
  • Tonnage optimization 2016-2017

– Newbuildings

  • 2 vessels delivered (WWASA), 6 vessels remaining (4 OW, 2 EUKOR)

– Recycling of old vessels

  • 4 vessels recycled (3 WWASA, 1 EUKOR), 3 vessels planned Q3 (OW)

– Redelivery of charter vessels

  • 1 vessel redelivered (EUKOR), 3 vessels planned Q3 (EUKOR)

– Redelivery flexibility

  • 9 vessels July 2016-June 2017 (EUKOR)
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> Prospects

The board expects volume growth to remain weak over the next period. The current global political landscape adds further uncertainties.

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  • Wilh. Wilhelmsen ASA

Second quarter 2016

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Wilh.Wilhelmsen ASA 5 August 2016

Benedicte B. Agerup, CFO

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> Wilh Wilhelmsen ASA

  • Effective on 8 June 2016
  • Significant non-recurring gain of USD 375

million (recorded in the holding segment)

  • BV of equity reduced by USD 730 million

(incl accounting gain)

  • Demerged entity Treasure ASA listed on

Oslo Stock Exchange 8 June 2016

WW ASA WWH ASA Hyundai Glovis 50% NAL 72,7% Wilhelmsen Lines 100% 100% Market WWL EUKOR ARC 27,3% 12.04% 50% 40%

Post demerger NAL AS

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> WWASA Group – Key financials

Non-recurring gain lifted operating profit significantly

  • Total income reported + 49% q-o-q, + 52% y-o-y
  • EBIT reported + 230% q-o-q, + 471% y-o-y
  • Non-recurring gain of USD 375 million in the holding segment
  • Ocean transported volumes increased by 8%
  • Two new Post Panamax vessels delivered for WWASA’s account

200 600 400 800 1 000 Q1 545 +49% Q4 Q3 Q2 USD million 905 596 608 609 558 100

  • 100
  • 200

200 300 400 500 USD million 98 +230% Q4 Q3 Q2 Q1 66

  • 134

417 73 126 2016 2015

Total income Total EBIT

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>

USD mill 2016 Q2 2016 Q1 2016 YTD 2015 YTD 2015 Q2 2015 FY Operating income 530 515 1,046 1,156 583 2,243 Gain on sale of assets 375 80 455 26 29 Share of profits from JV's and associates 13 13 23 14 36 Total income 905 608 1,514 1,205 596 2,308 EBITDA 455 161 616 248 113 262 Depreciation and impairments (38) (35) (72) (78) (40) (160) EBIT 417 126 543 171 73 103 Financial income/(expense) (21) (15) (36) (42) 4 (128) Profit/(loss) before tax 396 111 507 129 77 (25) 1 1 1 1 1 Net profit

1)

392 104 496 126 70 (4) Earnings per share (USD) 1.78 0.47 2.26 0.57 0.32 -0.02

1) after minority interest

WWASA Group – Profit and Loss Q2 2016

Proportionate method

Q2 2016 includes non-recurring net gain of USD 373 million

  • Gain of USD 375 million in holding segment and loss of USD 1.5 million in shipping segment
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> WWASA Group – Total income bridge

Total income slightly positive q-o-q

400 1 000 600 200 500 100 300 700 800 900 Step up gain related to VSA*) 530 Total income reported Q2 2016

  • 375

608 Total income adjusted Q2 2016 Total income adjusted Q1 2016 excl. Glovis 905 NAL demerger AS

  • 13
  • 80

515 USD million Total income reported Q1 2016 Hyundai/Glovis contribution

*) non recurring gain of USD 80 million related to the acquisition of full ownership of Vehicle Servi ces Americas and CAT-WWL in South Africa (both previously joint ventures), and the sale of Vehicle Services Europe (VSE)

+3%

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> WWASA Group – EBIT bridge

Total EBIT adjusted up 19% from a weak Q1

90 70 110 420 120 100 80 60 40 20 30 50 10 Total EBIT adjusted Q2 2016 44 Recycling

  • f vessels
  • 80

37 Total EBIT adjusted Q1 2016

  • excl. Glovis

417 Total EBIT reported Q2 2016

  • 375

Hyundai/Glovis contribution Step up gain related to VSA*) 4 Recycling

  • f vessels

126 Total EBIT reported Q1 2016

  • 13

USD million NAL demerger AS 2

*) non recurring gain of USD 80 million related to the acquisition of full ownership of Vehicle Servi ces Americas and CAT-WWL in South Africa (both previously joint ventures), and the sale of Vehicle Services Europe (VSE)

+19%

  • Hyundai/Glovis contribution discontinued in Q2
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> WWASA Shipping – Key financials

Increase in both auto and HH volumes

  • Total income reported + 4% q-o-q, - 21% y-o-y
  • EBIT reported + 36% q-o-q, - 34% y-o-y
  • Increased volumes combined with improved cargo and trade mix, but still suboptimal mix
  • Increased net bunker cost due to reduced bunker compensation and increased bunker price
  • Non-recurring loss of USD 1.5 million related to recycling of one vessel

600 500 400 300 200 100 433 372 357 460 470 437 USD million +4% Q4 Q3 Q2 Q1

  • 100
  • 150
  • 50

50 100 +36% Q4 Q3 Q2 Q1 59 USD million 28 58

  • 150

38 62 2015 2016

Shipping income Shipping EBIT

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> WWASA Shipping – EBIT margin

Improvement in underlying margin q-o-q

+ Lower G&A cost base

  • Higher net bunker costs

+ Reduced OPEX

  • Suboptimal cargo and trade mix

+ Improved volumes

  • Rate pressure

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

*)

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> WWASA Logistics – Key financials

Underlying result on par q-o-q

  • Total income reported - 35% q-o-q, + 25% y-o-y
  • EBIT reported - 92% q-o-q, - 57% y-o-y
  • Underlying result on par with previous quarter
  • Contribution from Hyundai Glovis discontinued 17 March 2016 following the demerger of NAL AS

300 250 200 150 100 50 155 Q3 Q2 Q1 129 134 120 167 259 USD million

  • 35%

Q4 120 100 80 60 40 20 6 USD million 18 8 40 18

  • 92%

Q4 Q3 Q2 Q1 100 2016 2015

Logistics income Logistics EBIT

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> WWASA

  • 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) Committed capex ending in Q2 2016

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> WWASA Group – Financial income/(expense)

Slight increase in net financial expenses q-o-q

  • Increased net interest expenses due higher interest bearing debt
  • Positive return from investment portfolio

Proportionate

USD mill 2016 Q2 2016 Q1 2015 Q2 2015 FY Net financial items 5.0 1.0 (0.8) (6.3) Net interest expenses (26.1) (22.8) (23.3) (91.4) Interest rate derivatives ‐ unrealised (1.1) (14.4) 18.5 24.3 Net financial ‐ currency (3.2) 20.1 8.6 (48.7) Net financial derivatives bunkers 4.3 0.7 0.9 (6.3) Financial income/(expense) (20.9) (15.4) 4.0 (128.3)

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> WWASA Group – Balance Sheet

Continued strong balance sheet post demerger of NAL AS

Equity

Equity ratio reduced to 45% due to demerger of NAL AS (Hyundai/Glovis)

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50 100 150 200 250 300 350 400 450 500 USD million 74 2019 349 2018 290 2017 112 2016 125 2021 -> 475 2020

WWASA Group – interest bearing debt

Refinancing of balloons in 2018/2019

Export financing Financial lease Banks Bonds

  • Ordinary instalments of approx. USD

30 million in Q2.

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

from cash position.

  • Delivery of MV Theben in April and

MV Themis in June, both financed through sale leaseback

  • In process of refinancing part of the

baloons in 2018/2019

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> WWASA Group – Liquidity development

Continued high liquidity buffers

425 41 129 27 130 375 500 450 400 350 300 50 600 800 750 700 650 550 Liquidity Q2 2016 406 Dividend received from JV’s 338 Liquidity Q1 2016 EBITDA*) Demerger gain 15 JVs Net financing Capex Interest and derivatives 20 Other USD million

*) Equity

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> WWASA Group – Semi-annual dividend per share

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

  • No dividend to be paid in

2016 for the fiscal year 2015

  • Visualizing values for

shareholders through demerger of NAL (Hyundai Glovis shareholding)

No dividend payment in H1 or planned in H2 2016

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Thank you!

>

www.wilhelmsenasa.com