Wilh. Wilhelmsen Holding ASA First quarter 2020 May 2020 Good - - PowerPoint PPT Presentation

SLIDE 1

• Wilh. Wilhelmsen Holding ASA

First quarter 2020

May 2020

SLIDE 2

USD mill

• unless otherwise indicated

Q1'20 Q4'19 Q-on-Q Change Q1'19 Y-o-Y Change Total income 215 224

• 4 %

199 8 %

• of which operating revenue

213 225

• 5 %

192 11 %

• of which gain/(loss) on sale of assets

1

• 1

7 EBITDA 37 31 17 % 34 9 % Operating profit/EBIT 21 12 68 % 17 25 % Share of profit from associates

• 60

12 neg. 15 neg. Change in fair value financial assets

• 256
• 25
• 3

Other financial income/(expenses)

• 48

3 8 Profit/(loss) before tax/EBT

• 344

2 neg. 37 neg. Tax income/(expenses) 5

• 9
• 6

Profit/(loss) for the period

• 339
• 6

neg. 31 neg. Profit/(loss) to owners of the parent

• 284

2 neg. 29 neg. EPS (USD)

• 6,36

0,05 neg. 0,63 neg. Other comprehensive income

• 124

33 5 Total comprehensive income

• 464

26 neg. 36 neg. Total comprehensive income owners of parent

• 404

33 neg. 33 neg. Total assets 2 765 3 293

• 16 %

3 276

• 16 %

Equity parent 1 476 1 880

• 21 %

1 853

• 20 %

Total equity 1 616 2 082

• 22 %

2 051

• 21 %

Equity ratio 58 % 63 %

• 5 %

63 %

• 4 %

Good operational performance offset by fall in asset values

USD 284 million in net loss

Total income up 8% year-over-year USD 37 million EBITDA

• Revenue growth and improved operating margin

USD 60 million loss from associates

• Volume drop and non-cash items in Wallenius

Wilhelmsen USD 305 million net financial losses

• Reduction in Hyundai Glovis market value
• Net loss on other investments and FX

USD -6.36 EPS

SLIDE 3

Steady income and improved operating margin for maritime services

Maritime services - total income and adjusted EBITDA margin *)

0% 5% 10% 15% 20% 25% 20 40 60 80 100 120 140 160 Q1 ’19 Q4 ’19 Total income USD mill EBITDA margin (adj.) Q1 ’17 Q1 ’18 Q1 ’20 18% +2%

• 3%

Total income - continued operation Adj EBITDA margin (IFRS 16 from Q1’19)

*) Margin adjusted for main non-recurring items: Q1’17-Q2’18: Drew acquisition cost Q2’19 Property sales gain

Income up 2% y-o-y

• Total sale of marine products stable, but with regional impact

from covid-19 related measures

• Stable income from agency services, but with fall in port calls

towards end of the quarter

• Ship management income lifted by increase in vessels on full

technical management and new offshore wind activities EBITDA up 28% y-o-y

• Improvement supported by appreciation of USD
• EBITDA margin of 18%

USD 26 million EBITDA

Main non-recurring gain Main non-recurring loss

(size indicates USD effect)

SLIDE 4

Continued high activity level for supply services

Supply services - total income and adjusted EBITDA margin *)

0% 10% 20% 30% 40% 50% 20 40 60 80 100 Total income USD mill 18% EBITDA Margin (adj.) Q1’18 Q4’17 Q1’19 Q4 ’19 Q1 ’20 +22%

• 7%

Income up 22% y-o-y

• Seasonally strong activity level at all main supply bases
• Project activities related to planned NATO exercise

EBITDA down 25% y-o-y

• Up 6% when adjusting for sales gains

USD 4 million loss from share of profit from associates

USD 13 million EBITDA

Sales gain Total income (excl. sales gain)

• Adj. EBITDA margin (IFRS 16 from Q1’19)

*) 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 Q1’20: USD 1 million sales gain

Sales gain (size indicates USD effect)

SLIDE 5

Significant fall in financial asset values

USD 65 million share of loss in Wallenius Wilhelmsen

77 71 247 88

100 200 300 400 500 600 700 800 900 Q1’19 MUSD Q1’20 807 Q4’19

15

730 881 817 497

Cash Hyundai Glovis (minority shareholders in Treasure ASA) Current financial investments Hyundai Glovis (equity holders of Wilhelmsen) Other non-current financial assets

Financial assets in holding and investments segment

560 475 372 398 152 100 200 300 400 500 600 700 800 900 MUSD Q1’19 Q4’19 Q1’20

Wallenius Wilhelmsen

Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen

(reported as associate)

Share of profit/(loss) (MUSD) Q1’19 8 Q2’19 1 Q3’19 13 Q4’19 17 Q1’20

• 65

SLIDE 6

Steady operating cash flow for maritime services and supply services

USD 124 million in cash and current financial investments

153 124 9 11 27 15 31.12.2019 Operating

• ther

Operating maritime services Operating supply services 2 6 Investing activities Dividend and buyback parent Net debt Other financing activities 31.03.2020

Cash from

• perating activities

Cash from financing activities Cash from investing activities

Cash flow

(MUSD)

SLIDE 7

Balance sheet remains solid and with long-term debt maturity profile

Wilhelmsen group total assets and equity ratio

Equity ratio of 58%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 000 2 000 3 000 4 000 Q1’18 Q1’19 USD mill Equity ratio Q2’18 Q4’18 Q1’20 Q3’18 Q2’19 Q3’19 Q4’19 1.476 58% 2.765 Equity majority Total assets Equity ratio Equity non-controlling

Debt maturity profile

50 100 150 200 250 300 Year 1 29 62 USD mill Year 2 287 Year 3 Year 4 >4 years 211 11 Leasing (IFRS 16) Holding and investments (ex lease) Maritime services (ex. lease) Supply services (ex.lease)

SLIDE 8

NOK 2.00 dividend per share

Dividend payments 1)

1 2 3 4 5 6 7 3.00 2.00 1.00 0.00 4.00 5.00 7.00 6.00 NOK/share Yield (%) 2016 2017 2018 2019 2020 2nd payment 1st payment Dividend yield (right axis)

1) Yield calculated based on previous year median closing price for WWI and WWIB share

Dividend payment maintained but with reduced amount in order to secure a financially sound holding company in today uncertain environment

Cash to shareholders

10 20 30 40 50 60 70 2018 USD Million 2016 2019 2017 2020 Dividend Buy back

SLIDE 9

Covid-19 update

Ships services Ship management NorSea Group Investments Reduced cruse activities (10-15% of income), more modest reduction for other shipping Operational issues related to port restrictions Most staff working from home offices Changed production line to hand sanitizers Potential shift from full technical management to lay-up management of vessels Crew changes a material operational issue Low oil price, most likely resulting in reduced

• ffshore exploration activities

All sites fully operational Reduced global car volumes effecting Wallenius Wilhelmsen and Hyundai Glovis Measures taken to recycle, lay-up, idle and slow steam ships

Necessary steps taken to safeguard health while maintaining operation

SLIDE 10

Outlook

The spread of covid-19 and the measures undertaken to contain it have reduced global economic activity and values. For operating activities, the impact of the difficult market conditions will mainly have an effect from the second quarter onwards. The extent of future impact on operating income and result and on asset prices remains uncertain. Wilhelmsen retains its robustness and capacity to meet this uncertainty.

SLIDE 11

Supplementary slides – First quarter 2020

Maritime services

Ships service Ship management Supply services

NorSeaGroup

Holding and investments

WalleniusWilhelmsen ASA Treasure ASA Financial investments

SLIDE 12

Ships service

Wilhelmsen Ships Service is a global provider of standardised product brands and service solutions to the maritime industry, focusing on marine products, maritime logistics and ships agency Ships service is fully owned by Wilhelmsen

• Total income on par with the corresponding period last year.

Activity level on regional basis influenced by measures to contain covid-19.

• EBITDA was up for the quarter, partly due to a depreciation of

NOK versus USD. Q1’20 highlights

129 135 131 139 140 138 131 131 133 130 134 137 133 20 40 60 80 100 120 140 160 Q1’17 USD mill Q1’20 Q1’19 Q1’18 Q4’19 0%

• 3%

Total income - ex safety business

Total income

SLIDE 13

Ship management

Wilhelmsen 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

• An increase in ships on full technical management and new
• ffshore wind activities continued to lift income on a year-
• ver-year basis.
• EBITDA was stable for the quarter.

Q1’20 highlights

11 11 11 11 10 10 10 11 10 2 4 6 8 10 12 14 16 18 20 Q1’20 Q1’17 USD mill Q4’19 Q1’19 Q1’18 16 16 15 14 +39%

• 4%

Material sales gain NorSea Wind (50%) Total income (excl. material sales gain)

Total income

SLIDE 14

• All main supply bases experienced higher activity level and income

than in the corresponding period last year. Also increase in project related activities provided to WilNor Governmental Services.

• EBITDA was stable for the quarter when adjusting for a sales gains.

Q1’20 highlights

NorSea Group

NorSea Group provides supply bases and integrated logistics solution to the offshore industry Wilhelmsen owns ~75,2% of NorSea Group (as per 31 March 2020)

52 56 70 70 79 59 68 70 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Q1’18 54

• Mill. USD

Q4’17 1 Q4’19 6 Q1’19 Q1’20 65 +21%

• 7%

Material sales gain Total income (excl. material sales gain)

Total income

SLIDE 15

• EBITDA of USD 130 million
• Ocean volume declined 20% y-o-y, due to covid-19 and slower market
• Landbased volumes also down, partly due to covid-19
• Decisive action taken to reduce cost and strengthen liquidity
• ARC awarded contract for transportation of household goods

Q1’20 highlights

Wallenius Wilhelmsen ASA

Wallenius 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 31 March 2020)

Photo: Wallenius Wilhelmsen

784 937 979 745 683 547 560 475 372 398 152 200 400 600 800 1 000 1 200 USD mill Q1’17 Q1’20 1.155 1.134 Q1’18 Q1’19 Q4’19

• 408
• 245

Wallenius Wilhelmsen ASA

• Wilh. Wilhelmsen ASA

Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen ASA

SLIDE 16

• USD 224 million loss from change in fair value of Hyundai Glovis
• USD 12 million dividend income from Hyundai Glovis
• Treasure ASA ex dividend of NOK 0.40 per share 13 March, with

payment in May Q1’20 highlights

Treasure ASA

Treasure ASA holds a 12.04% ownership interest in Hyundai Glovis, and is listed on Oslo Børs Wilhelmsen owns ~73.6% of Treasure ASA (as per 31 March 2020, adjusted for shares cancelled at AGM 2020)

Photo: Hyundai Glovis

295 305 307 281 331 255 251 214 222 252 243 249 137 100 200 300 400 USD mill Q1’17 Q1’20 Q1’18 Q1’19 Q4’19

• 86
• 112

Treasure ASA

Market value of Wilhelmsen’s investment in Treasure ASA

SLIDE 17

Financial investments

Financial 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 32 million in fair value loss from financial assets *)
• USD 15 million loss from investment management **)

Q1’20 highlights

Photo: Qube/Oslo Børs

71 100 200 300 400 USD mill 12 77 Q1’17 Q1’18 Q1’19 Q4’19 Q1’20 260 302 267 256 251 235 241 203 219 248 226 244 159

• 60
• 85

Non-current financial investments Current financial investments Cash

Financial assets, investment portfolio and cash

(Holding and investment segment excluding Treasure ASA / Hyundai Glovis)

*) Excluding currency gain/(loss) reported under comprehensive income **) Excluding currency gain/(loss)

SLIDE 18

wilhelmsen.com