Wilh. Wilhelmsen Holding ASA Second quarter 2018 Thomas Wilhelmsen, - - PowerPoint PPT Presentation
Wilh. Wilhelmsen Holding ASA Second quarter 2018 Thomas Wilhelmsen, group CEO August 2018 Highlights Second quarter 2018 Improved underlying EBITDA Wallenius Wilhelmsen net profit up q-o-q Significant fall in Hyundai Glovis value Cost
Thomas Wilhelmsen, group CEO
August 2018
Improved underlying EBITDA Wallenius Wilhelmsen net profit up q-o-q Significant fall in Hyundai Glovis value Cost accrual for termination of Drew transaction NOK 3.50 dividend per share
Second quarter 2018
Portable water test kit (Nalfleet)
Nitrogen gas cylinder (Unitor) High pressure cleaner (Unitor) Mooring solution (Timm Winchline) Cooling water treatment (Nalfleet)
Hyundai Motor group restructuring proposal
Wilhelmsen financial result hit by Hyundai Glovis share price volatility
Hyundai Glovis YTD share price 8/8/2018 Source: Bloomberg 31/12 136 000 30/6 115 500 31/3 169 000
Maritime services Supply services Holding/ Investm. Elim./ discont. Group USD mill
Q2'18 Q2'18 Q2'18 Q2'18 Q2'18 Total income 148 73 3
222
147 71 3
219
1 2 3 EBITDA
14
Operating profit/EBIT
9
Share of profits from associates 1 4 6 11 Change in fair value financial assets
Other financial income/(expenses)
Tax income/(expenses) 4
3 Profit/(loss) from continued operations
8
Discontinued operations Profit/(loss) for the period
8
Profit/(loss) to owners of the parent
5
EPS (USD)
Other comprehensive income
Total comprehensive income
Total comprehensive income owners of parent
Total assets 911 662 1 592
3 136 Equity parent 300 156 1 389 1 845 Total equity 300 210 1 518 2 027 Equity ratio 33 % 32 % 95 % 0 % 65 %
Improved underlying contribution from operating entities
Total income up 5% from first quarter Underlying EBITDA up 77%
non-recurring acquisition cost
Increase in share of profit from associates
Significant loss on financial assets
Maritime services - total income and adjusted EBITDA margin *)
0% 5% 10% 15% 20% 25% 300 50 100 150 250 12% EBITDA margin (adj.) Q2 ’18 Total income USD mill Q2 ’15 Q2 ’17 Q2 ’16 1%
Total income - discontinued operation and gain/(loss) on sale of assets Total income - continued operation Adj EBITDA margin
*) Margin adjusted for main extraordinary items: Q3’15: Impairment charge Q4’15: Pension related accounting gain Q4’16: Sales gain and transaction/restructuring cost Q1’17-Q2’18: Drew acquisition cost
Stable development in total income
Adjusted EBITDA +36% q-o-q USD 27 million non-recurring termination fee and legal cost
Reported EBITDA hit by Drew termination fee and legal cost
Supply services - total income and EBITDA margin
20 40 60 80 0% 5% 10% 15% 20% 25% EBITDA margin 19% USD mill Q1 ’18 Q4 ’17 Q2 ’18 23% Total income EBITDA margin
NorSea Group income up 24% from first quarter
Stable development for WilNor Governmental Services
NorSea Group EBITDA lifted by seasonality and property sales gains
Increased contribution from Wallenius Wilhelmsen
Wallenius Wilhelmsen result up, but from a weak first quarter
Hyundai Glovis
Qube Holdings
Wilhelmsen group total assets and equity ratio
Total assets USD 3 136 million (down 10%) Total equity USD 2 027 million (down 14%)
Key figures
Equity and total assets down due to reduced financial assets value
1 000 2 000 3 000 4 000 5 000 6 000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q3’16 Q1’18 USD mill Equity ratio Q4’15 Q2’15 Q3’15 Q1’16 Q2’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 65% Q2’18 Total assets Equity majority Equity non-controlling Equity ratio
1) Supply services segment
Maturity profile – outstanding debt
(USD million)
Liquidity 1)
(USD million)
24 24 20 421 >4 years Year 3 Year 1 102 Year 2 Year 4 WWH ASA (parent) WWH Invest Maritime services Supply services 54 9 112 Holding and investments Maritime services Supply services 55 335 201
Outstanding debt 2)
(USD million)
1) Cash and cash equivalents and current financial investments 2) Excluding intercompany debt
Refinancing of main NorSea Group facilities on 5-year basis
Dividend payments 2) Upstream cash 1)
1 2 3 4 5 6 7 8 9 10 0.00 4.00 6.00 1.00 2.00 3.00 5.00 7.00 8.00 9.00 10.00 Yield (%) 2012 NOK/share 2013 2014 2015 2016 2017 1H’18 2nd payment Dividend yield (right axis) 1st payment 100 200 300 400 500 600 700 800 900 1 000 2013 MNOK 2015 2012 2011 2014 2016 2017 1H’18 Maritime services Investments WWASA Supply services
1) Dividend from WWASA; net contribution from maritime services; dividend, interest and net gain from Treasure ASA, NorSea Group, Qube, WWH portfolio and other investments 2) Yield calculated based on previous year median closing price for WWI and WWIB share
Potential second dividend of up to NOK 2.50 per share
Autonomous drone delivery of parcels from shore to ship Ships service - Pilot launch in Singapore Q3 2018 Trident Juncture host nation support WilNor Governmental Services/NorSea Group - Q3/Q4 2018 Wilhelmsen Ship Management UK Limited 11 vessel on management from Q3 2018 TenneT offshore wind contract NorSea Group/Wilhelmsen Ship Management Contract win Q1 2018 - operational Q3 2018 Massterly - autonomous shipping company Wilhelmsen and Kongsberg JV Agreement signed Q2 2018 – operational Q3 2018 DoLittle – digital development 50/50 JV from Q2 2018
After a weak start of the year, the underlying trend has been more optimistic for all three business segments. The positive development is expected to continue into the third quarter. A more negative sentiment towards global trade, and potential introduction of further tariffs and restrictions, creates uncertainties on a medium-term basis.