Wilh.Wilhelmsen Second quarter 2015
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Wilh.Wilhelmsen ASA /// 6 August 2015 Jan Eyvin Wang, President and CEO
2
> 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.
3
> Healthy growth in car salesBut uncertainty in emerging markets
Region Q2 2015 Q1 2015QoQ
change Q2 2014 YoY change 2015 FY 2016 FY2016 FY/2015 FY
N America 5,43 4,63 17 % 5,23 4 % 19,90 20,30 2 %
Europe* 4,01 4,07 -1 % 3,89 3 % 15,00 15,40 3 %
Oceania 0,33 0,31 5 % 0,32 0 % 1,20 1,30 8 %
BRICs 7,58 8,13 -7 % 7,84 -3 % 32,90 35,00 6 %
.....Brazil 0,60 0,66 -8 % 0,82 -26 % 3,30 3,30 0 %
.....Russia 0,39 0,38 1 % 0,63 -38 % 1,60 1,60 0 %
.....India 0,71 0,79 -11 % 0,66 8 % 3,30 3,70 12 %
.....China 5,88 6,30 -7 % 5,73 3 % 24,70 26,40 7 %
*Excluding Russia and Turkey
Source; WWL GMI
4
> Korean car exports are holding up While Japanese exports is at a low level
Source; JAMA, KAMA, WWL GMI
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015
Japan Korea
Quarterly Light Vehicle Export from Japan and Korea ('000 units)
5
>
22
20
14
16
12
18
10
8
6
4
2
0
Q3
11
Q2
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q1
11
Q2
09
Q1
09
Q4
08
Million Cbm
Q3
09
Q1
13
Q2
12
Q3
12
Q4
12
Q1
12
Q4
11
+6%-5%
Q2
15
Q1
15
Q4
14
Q3
14
Q2
14
Q1
14
Q4
13
Q3
13
Q2
13
Group volumes up from a weak first quarter Volumes were up 6% q-o-q and down 5% y-o-y
Prorated ocean volumes – WW group (100%)
6
>
Index
Higher volumes but suboptimal cargo mix
High and Heavy
• Oceania up from a weak first quarter due to
cargo restrictions
• Construction volumes to North America
remained strong, however weaker than last
quarter
Auto
• All trades saw a lift in volumes, but Asia
to Europe remained flat
Unprorated ocean volumes – WWL and EUKOR (100%)
7
> TonnageOptimizing fleet
• EUKOR ordered 2 post panamax
vessels for delivery in 2017
• MV Thalatta delivered in April
• 8 total group deliveries 2016-17
• Net decrease of three vessels from last
quarter
MV Thalatta
8
> Fleet operation
• Total WW off-hire in Q2; 182 days (Q1 2015; 8 days)
– Planned 71.5 days
– Unplanned 110.5 days
• Normal planned off-hire during a year ~100 days
(7 dry dockings)
• Bunker price increase during the quarter led to
reduced margins
9
>
• 30 July, Wallenius Wilhelmsen Logistics (WWL), owned 50% by
Wilh.Wilhelmsen ASA, reached a settlement agreement with the Competition
Commission in South Africa.
• If the settlement is confirmed by the Competition Tribunal of South Africa, WWL
will pay an administrative penalty in the amount of R95 695 529 (approx. USD
7.7 million).
• WWL made an accrual for the penalty in the fourth quarter 2014. WWASA’s 50%
share of the fine will therefore not have an accounting effect in 2015.
Anti trust investigation
10
> Prospect
Based on the market outlook, the WWASA board expects seasonally lower auto volumes
and continued soft high and heavy volumes in the second half of 2015.
Logistics activities are anticipated to be on par with the first half of 2015.
Wilh. Wilhelmsen ASA
Second quarter 2015
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Wilh.Wilhelmsen ASA 6 August 2015 Benedicte B. Agerup, CFO
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> WWASA Group – Key financialsUnderlying (adjusted) EBIT in line with previous quarter
• Total income reported - 2% q-o-q, - 13% y-o-y
• EBIT reported - 25% q-o-q, + 29% y-o-y
• EBIT adjusted in line with Q1
• Lifting capacity reduced by 2% and one newbuilding delivered in April
600
500
400
300
200
100
0
700
596
682
Q1
609637 624
-2%
Q4Q3
650
Q2
USD mill
100
80
60
40
20
0
USD mill
76-25%
Q4Q3
66
Q2
73
57
Q1
98
54
20152014
Total income Total EBIT
13
> WWASA EBIT bridge q-o-q
Q1 2015 Q2 2015
Underlying profit stable q-o-q
26
98
72
0
10
20
30
40
50
60
70
80
90
100
Gain on share
reduction in
Hyundai Glovis
EBIT reported
Q1 2015
MUSD
EBIT adjusted
Q1 2015
7473
EBIT adjusted
Q2 2015
Sales lossEBIT reported
Q2 2015
1
14
>
WW ASA Group
USD mill 2015 Q2 2015 Q1 2015 YTD 2014 YTD 2014 Q2 2014 FY
Operating income 583 573 1 156 1 292 667 2 525
Gain on sale of assets 26 27
Share of profits from JV's and associates 14 9 23 26 15 66
Total income 596 609 1 205 1 318 682 2 592
EBITDA 113 136 249 185 95 413
Depreciation and impairments (40) (38) (78) (75) (38) (160)
EBIT 73 98 171 111 57 253
Financial income/(expense) 4 (46) (42) (47) (31) (131)
Profit/(loss) before tax 77 52 129 64 26 122
1 1 1 1 1 Net profit
1) 70 56 126 56 25 166
Earnings per share (USD) 0.32 0.26 0.57 0.26 0.11 0.75
1) after minority interest
WWASA Group - Profit and Loss 2015Proportionate method
1st quarter 2015: Sales gain of USD 26 million from a reduction in the shareholding of Hyundai Glovis from 12.5% to 12.0%
15
> WWASA EBITDA adjusted for non-recurring itemsIn line with previous quarter and same period last year
114110106102
116
91
121118120
104
120
150154
135
0
50
100
150
200
Q1
2014
Q4
2014
Q1
2015
4%-2%
USD mill
Q4
2013
Q3
2013
Q2
2013
Q1
2013
Q4
2012
Q3
2012
Q3
2014
Q2
2014
Q2
2012
Q1
2012
Q2
2015
16
> WWASA Shipping – Key financialsPerformance on par with previous quarter
• Total income reported + 2% q-o-q, - 13% y-o-y
• EBIT reported - 3% q-o-q, + 56% y-o-y
• Higher shipped volumes but unfavourable cargo mix
• Higher net bunker costs and negative impact from off hire q-o-q
600
500
400
300
200
100
0
499460
USD mill
502
+2%
Q4Q3
512
Q2
470
539
Q1
0
10
20
30
40
50
70
60
Q4
-3%55
USD mill
47
Q3Q2
58
37
Q1
59
37
20152014
Shipping income Shipping EBIT
17
> WWASA Shipping – EBIT marginShipping margins continue to be under pressure
+ Higher volumes transported - Reduced BAF surcharges
+ Lower G&A cost base - Weaker cargo and trade mix
- Negative impact from off hire
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
USD millOperating revenue - Shipping EBIT margin EBIT margin adjusted
18
> WWASA net bunker costs (WWASA share)
-41
45
-85
-55
20
-75
Voyage costs Operating income EBIT
MUSD
Voyage costs Operating income EBIT
Q1 2015 Q2 2015
Negative EBIT impact
MUSD -14 q-o-q
EBIT margin negatively impacted by increased net bunker costs q-o-q
19
> WWASA Logistics – Key financialsUnderlying EBIT improved q-o-q
• Total income reported -14% q-o-q, - 9% y-o-y
• EBIT reported - 56% q-o-q, - 22% y-o-y
• Adjusted EBIT higher q-o-q
• Increased contribution, primarily driven by Hyundai Glovis
• Market value of 12.0% ownership in Hyundai Glovis USD was 816 million on 30 June 2015
140
160
0
20
40
120
100
60
80
Q2
134
155144
Q1
147
USD mill
126
Q3 Q4
143-14%
45
40
35
30
5
0
15
20
10
25 22
Q1
40
20
USD mill
14
Q2
18
22
Q3 Q4
-56%
20152014
Logistics income Logistics EBIT
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> WWASA Group – Financial income (expense)Improved financial income q-o-q
• Weaker result from investment management
• Stable net interest expenses
• Unrealized gains on interest rate- and currency derivatives
• Unrealised net currency revaluation losses from non USD assets/liabilities
USD mill 2015 Q2 2015 Q1 2014 Q1 2014 FY
Net financia l i tems (0.8) 7.8 5.0 (0.5)
Net interest expenses (23.3) (22.6) (18.0) (91.2)
Interest rate derivatives - unreal ised 18.5 1.4 (5.6) (16.8)
Net financia l - currency 8.6 (33.4) 2.9 (22.0)
Net financia l derivatives bunkers 0.9 0.7 (0.2) (0.3)
Financial income/(expense) 4.0 (46.1) (16.0) (130.9)
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>
USD mill
Assets
Non current assets 3 080 88 % 2 995 86 % 2 955 88 %
Current assets (excl liquid funds) 31 1 % 61 2 % 23 1 %
Liquid funds 408 12 % 408 12 % 375 11 %
Total assets 3 519 100 % 3 464 100 % 3 353 100 %
Equity & liabilities
Equity 1 806 51 % 1 761 51 % 1 707 51 %
Non current interest-bearing debt 1 277 36 % 1 231 36 % 1 236 37 %
Other non current liabilities 249 7 % 296 9 % 264 8 %
Current liabilities 187 5 % 176 5 % 145 4 %
Total equity and liabilities 3 519 100 % 3 464 100 % 3 353 100 %
30.06.2015 31.12.201431.03.2015
WWASA Group – Balance SheetStrong balance sheet
22
> WWASA Group - Committed CAPEX, incl. dry-dockingStable CAPEX the next two years
297
145152
-141-150
-100
-50
0
50
100
150
200
250
300
2015 FY
USD mill
Acc 2015-20162016 FYPaid capex 1st half 2015
• One vessel delivered 7. April 2015, MV Thalatta
23
> WWASA Group – Liquidity developmentContinued high liquidity buffers
40
73
15
28
38
33
85
420
410
400
0
490
480
470
460
450
440
10
430
510
530
500
520
408
Liquidity
Q2 2015
408
Liquidity
Q1 2015
EBITDA*) JV’s/
associates
Dividend
received
from JV’s
and ass.
Capex
USD mill
Net
financing
Interest Dividend to
shareholders
*) Equity consolidation
24
>
0
50
100
150
200
250
300
350
400
450
2015
52
USD mill
2020 ->
421
2019
344
2018
286
2017
101
2016
189
WWASA Group – interest bearing debtSound maturity profile
Tax leases
Banks
Bonds
Export financing
• New debt in Q2 to finance second post
panamax vessel Thalatta.
• Ordinary instalments of USD 26 million
in Q2.
• Refinancing of three vessels previously
on UK tax lease to ordinary bank
financing in July.
• Renewal of revolving credit facility of
USD 50 million in July.
25
> WWASA Group – Semi-annual dividend per shareDividend of NOK 1.00 per share in H1 approved by AGM
1,01,01,0
0,8
4,0
1,0
0,70,50,5
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
H1
2015
H2
2014
H1
2014
H2
2013
H1
2013
H2
2012
H1
2012
H2
2011
H1
2011
NOK/share
• Dividend payment of
NOK 220 million 7 May
2015.
• Board of directors
authorized to pay
additional dividend up to
NOK 1.25 per share.
• The autorization is valid
until next AGM, no later
than 30 June 2016.
Thank you!>
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