Presentation at Shippingklubben 29 October, 2004
Profit & loss statement - Total WW Group MUSD Quarter 01.01-30.09 Year 2004 2003 2004 2003 2003 Gross revenue 283 246 804 706 966 EBITDA 57 45 139 114 147 Depreciation/write-downs (18) (19) (55) (55) (75) EBIT 39 26 85 59 72 Net income from associates 10 (8) 24 (1) 4 Profit after associates 49 18 109 58 76 Net financial items (5) (2) (3) (7) (3) Pre-tax profit 44 16 105 51 73 Taxes (6) (4) (12) (7) (7) Net profit 38 12 93 44 66
Net income from associates Quarter 01.01-30.09 Year Assets MUSD 2004 2003 2004 2003 2003 pr. 30.09 EUKOR 5,7 (11,0) 10,7 (11,0) (8,0) 134,1 CAT/GAL - (0,2) 0,7 1,7 2,0 53,3 Other Liner - 0,2 0,4 0,2 0,5 0,3 Barwil TS 2,8 1,8 6,8 5,2 7,2 20,4 Barber TS 0,2 0,1 0,4 0,2 0,2 2,0 Dockwise 1,6 0,6 5,1 2,4 2,3 44,1 Total 10,3 (8,5) 24,1 (1,3) 4,2 254,1
Net financial items MUSD Quarter 01.01-30.09 Year 2004 2003 2004 2003 2003 Investment management 0,6 2,5 8,4 5,2 11,1 Interest income 1,2 0,9 3,5 3,3 4,6 Interest expenses (5,0) (6,0) (16,5) (18,3) (24,2) Agio/disagio (0,7) 0,8 1,3 2,1 4,2 Other financial items 0,1 (0,3) 0,1 0,9 1,3 Net Financial (3,8) (2,1) (3,2) (6,8) (3,0)
EBITDA incl. Net income from associates / Pre-tax profit MUSD 70,0 60,0 50,0 40,0 30,0 20,0 10,0 0,0 EBITDA incl. TS Pre-tax profit Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004
Earnings per share USD 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 1998 1999 2000 2001 2002 2003 2004 Full year YTD
Dividends Dividend per share NOK 8,00 7,00 6,00 5,00 4,00 3,00 2,00 1,00-1998 1999 2000 2001 2002 2003 2004 Dividend Distribution ratio 50 % 40 % 30 % 20 % 10 % 0 % Distribution Ratio
Balance sheet 30.9.2004 30.9.2003 31.12.2003 MUSD Assets Fixed assets 1 007 69 % 989 70 % 987 69 % Current assets (ex. liquid funds) 196 13 % 193 14 % 185 13 % Liquid funds 264 18 % 229 16 % 256 18 % Total assets 1 467 100 % 1 411 100 % 1 428 100 % Equity and liabilities Equity 622 42 % 551 39 % 565 40 % Long-term interestbearing debt 547 37 % 598 42 % 597 45 % Other long-term liabilities 55 4 % 55 4 % 54 4 % Short-term liabilities 243 17 % 207 15 % 212 15 % Total equity and liabilities 1 467 100 % 1 411 100 % 1 428 104 % Capital Employed 1 180 1 165 1 176
Liner and car carriers MUSD Quarter 01.01. - 30.09. Year 2004 2003 2004 2003 2003 Gross revenue 246,2 214,7 698,8 616,9 839,7 EBITDA 59,5 43,7 147,4 116,4 152,6 Depreciation/write-downs (15,4) (16,0) (46,8) (47,0) (63,0) EBIT 44,1 27,7 100,6 69,4 89,6 Net income from associates 5,8 (11,0) 11,8 (9,1) (5,5) Profit after associates 49,9 16,7 112,4 60,3 84,1 Net financial items (3,8) (5,4) (10,0) (11,9) (15,6) Pre-tax profit 46,1 11,3 102,5 48,4 68,5
Liner and car carriers Gross revenue MUSD 300 250 200 150 100 80 60 40 20 - (20) Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 EBITDA Income from associates
Barwil MUSD Quarter 01.01. - 30.09. Year 2004 2003 2004 2003 2003 Gross revenue 22,1 18,5 64,3 55,0 76,8 EBITDA 2,5 2,2 6,1 5,1 5,5 Depreciation/write-downs (1,7) (1,7) (5,2) (5,0) (7,3) EBIT 0,8 0,5 1,0 0,1 (1,8) Net income from associates 2,7 1,8 6,8 5,2 7,2 Profit after associates 3,5 2,3 7,8 5,3 5,4 Net financial items (0,7) 0,5 (0,4) 0,7 0,9 Pre-tax profit 2,8 2,8 7,4 6,0 6,3
Barwil Gross revenue MUSD 25 20 15 10 5 0 6,0 4,0 2,0 0,0 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 EBITDA incl. TS
Barber MUSD Quarter 01.01. - 30.09. Year 2004 2003 2004 2003 2003 Gross revenue 10,0 9,7 29,8 27,2 37,6 EBITDA 1,6 2,3 5,4 5,6 5,9 Depreciation/write-downs (0,5) (0,4) (1,5) (1,2) (2,8) EBIT 1,1 1,9 3,9 4,4 3,1 Net income from associates 0,2 0,1 0,4 0,2 0,2 Profit after associates 1,3 2,0 4,3 4,6 3,3 Net financial items - (0,1) 0,1 (0,0) 0,3 Pre-tax profit 1,3 1,9 4,4 4,6 3,6
Barber Gross revenue MUSD 15 10 5 0 2,5 2,0 1,5 1,0 0,5 0,0 Q102 Q202 Q302 Q402 Q103 Q203 Q303 Q403 Q104 Q204 Q304 EBITDA incl. TS
New building program Financial tonnage providers GROSS TONNAGE CAPACITY INCREASE 2004-2008 Wallenius Wilh. Wilhelmsen Operational tonnage providers Lease (260 MUSD) 72% WW NB FINANCING Equity share (68 MUSD) 19 % NEW BUILDING PROGRAM # Vessels Size Operational tonnage providers 17 103 300 Financial tonnage providers 2 13 000 Wallenius 7 42 900 Wilh.Wilhelmsen 7 45 800 Sum 33 205 000 Bank Loan (33 MUSD) 9 %
WW- Group vessel investments MUSD 250 Bank loan Financial lease Equity 200 150 100 50 0 Q4 2004 2005 2006 2007 2008 Vessel Delivery 2004 2005 2006 2007 2008 Total Sum 6 7 9 8 3 33
Comments by President & GCEO Ingar Skaug
Global light vehicle sales through 2009 30 28 Total vehicle sales - right hand scale 75 70 26 65 24 60 22 20 18 16 14 12 10 8 6 4 2 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Million vehicles 55 50 45 40 35 30 25 20 NAFTA W EUROPE OTHER ASIA JAPAN S/C AMERICA E EUROPE OTHER WORLD OCEANIA/S AFR 15 10 5
Vehicle imports and transplant sales in North America. 10 000 9 000 8 000 TOTAL MARKET (RIGHT H SCALE) 20 000 18 000 16 000 1000 vehicles 7 000 6 000 5 000 4 000 3 000 14 000 12 000 10 000 8 000 6 000 OTHER IMP FROM EUROPE IMP FROM KOREA IMP FROM JAPAN EUR TRANSPL ASIAN TRANSPL 2 000 4 000 1 000 2 000 0 97 98 99 00 01 02 03 04 05 06 07 08 09 0
Vehicle imports and transplant sales in Western Europe. 6 000 18 000 5 000 TOTAL MARKET (RIGHT H SCALE) 15 000 1000 vehicles 4 000 3 000 2 000 12 000 9 000 6 000 OTHER IMP FROM N AMERICA IMP FROM OTH ASIA IMP FROM JAPAN JAP TRANSPL 1 000 3 000 0 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 0
Vehicle shipments by production regions 11000 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 1000 vehicles 04 06 08 Grand total JAPAN S KOREA EUROPE N AMERICA OTHERS
Vehicle shipments by main trades 5500 11000 5000 10000 4500 9000 1000 vehicles 4000 3500 3000 2500 2000 Grand total (right hand scale) 8000 7000 6000 5000 4000 Asia-N America Asia-Eur/Med Oth Jap trades Atl trades Oth Trades Oth Kor trades 1500 3000 Eur-East/Southbound 1000 2000 500 1000 0 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 0
Deep sea vehicle shipments by main trades 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % Oth trades Oth Kor trades Oth Jap trades Eur-East/Southbound Atl trades Japan-Eur/Med Oth Asia-Eur/Med Korea-Eur/Med Japan-N America Korea-N America 0 % 1984 1989 1994 2004 2009
H&H shipment development (total market) 2004-2006 % grow th year-per-year -10% 0% 10% 20% 30% 40% 50% 36.9 % Asia-N America -2.5 % 0.9 % 14.1 % Asia-Europe 6.8 % 3.7 % 24.5 % Europe-N America 2.8 % -0.9 % 10.1 % N America-Europe 5.4 % 1.5 % 3.5 % Europe-Oceania 3.9 % 0.0 % 38.4 % N America-Oceania 4.5 % -0.3 % 22.3 % Total 3.7 % 1.1 % ASNA/EUNA: US Housing start-ups will level off in 2005. Tax incentive program on new equipment ends in January 2005. Public spending on infrastructure to remain high. ASEU/NAEU: Continued economic growth in 2005 will lead to increased construction projects, particularly in Germany and East European/Russian markets. EUOC/NAOC: High mineral prices support a continued strong construction & mining equipment demand. Good harvest and general high demand for agricultural product indicate a continued high demand for agricultural equipment also in 2005. US-Australia free trade agreement supports US sourcing. 2004 2005 2006
NCC Key Market Trends relevant for WWL Asia s demand for energy is highest in the world. - Nuclear energy increasing in importance Global mining exploration is on the rise for the first time since 1997. China has become the world s largest consumer and importer of machine tools. The country develops its machine tools production base as well. Japanese machinery manufacturers shift their exports focus to Asia. Wind power energy will have further growth. Demand for railcars (freight wagons, locomotives) booming in resource rich countries (Australia, Brazil). Aircraft parts sourcing is getting more diversified (geographically), and more modular (size-wise). NCC includes the following cargo segments: Machinery (incl. machine tools), power generation equipment, wind mills, railcars, pleasure boats, natural rubber and forestry.
NCC shipment development (total market) 2004-2006 % growth year-per-year -10% -5% 0% 5% 10% 15% 20% 25% Asia-N America Asia-Europe 5.9 % 0.6 % 5.1 % 3.0 % 10.7 % 19.1 % EU-OC: Shipments of machinery and power generation equipment will improve due to planned mineralrelated expansion projects. Europe-Oceania Europe-N America N America-Europe N America-Oceania TOTAL -7.6 % -2.0 % 4.0 % 2.5 % 2.2 % 2.5 % 0.6 % 5.1 % 1.7 % 1.8 % 0.9 % 3.4 % 1.1 % 8.3 % 20.2 % AS-EU: Strong growth in 2004 relates mainly to shipments of railcars from Korea to Greece ahead of the Olympics. Shipments of plant equipment to Japanese and Korean auto-related plants in Eastern Europe are to be strong. NA-OC: Shipment growth to level off in 2005/2006. 2004 2005 2006
200 150 100 50 Vessels 30 22 28 19 22 19 19 16 8 5 2 1 3 36 18 1 2 1 9 8 13 10 Contr. newbuildings 34 33 29 26 27 26 24 15 12 12 9 5 5 1973 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 Capacity: Car Equivalent Units 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 PCC/PCTC fleet by age Updated as per 24.9.2004
PCC/PCTC fleet recycling forecast o Vessels to be recycled during 2004-2009 are assumed to be found in the life time span 27-30 years. Accumulated total number of vessels in these age categories is 102 with a combined capacity of 398 147 CEU. o Only a proportion of vessels belonging to this age range is expected to be recycled. Our assumptions are summarised in table below. Assumed recycling by year 2004 2005 2006 2007 2008 2009 Total Vessels 0 5 9 9 11 16 50 CEU 0 13 033 33 990 31 520 51 727 71 069 201 339 Assumed recycling by operator 2004-2009 NYK MOL K-Line WWL EUKOR HUAL Others Vessels 7 11 1 6 13 7 9
Global PCC/PCTC fleet: Supply & demand projection 575 550 Vessels 525 500 475 450 425 400 375 350 325 300 275 250 CAPACITY DEMAND FORECAST (2003 CAP. UTILISATION) 2003 2004 2005 2006 2007 2008 2009 Capacity demand incl. assumed used vehicle shipm ents Capacity supply including assumed recycling Capacity supply - including newbuildings - if no further recycling (hypothetical) Projection is based on new vehicles. Base year 2003 was characterized by a pronounced under-capacity situation.
Vehicle shipments - WWL: Supply & demand projection 65 60 Vessels 55 50 45 40 35 30 25 CAPACITY DEMAND FORECAST (2003 CAP. UTILISATION) Capacity supply - including newbuildings - if no further recycling Capacity supply including recycling/redelivery forecast Base year 2003 was characterized by a pronounced under-capacity situation. Expected WWL shipment decrease in 2004 is the result of actions taken to reduce our presence in Atlantic trades and discontinued WWL-activities in Europe-M East/ Asia 20 2003 2004 2005 2006 2007 2008 2009
Wilh. Wilhelmsen will be a leading, global provider of maritime services We have defined our vision as being a leading, global provider of maritime services The maritime services industry is changing, with increased consolidation among customers and competitors, emphasis on industrialised delivery and focus on value for money services globally In a changing market, Wilh. Wilhelmsen must adapt and improve in order to take out opportunities and maintain and strengthen our position Short term, we need to increase our cost efficiency through our operations and take the benefits out of our total size and strength In the long term, we will shape the market through our competencies, network and combined business areas Fulfilling the vision means changing according to market changes.
We need to capitalise fully on the potential and strengths of the two companies Global infrastructure Operational competence and know-how within defined business Local knowledge and presence Local entrepreneurship Established as quality agent International structure, global processes and applications, and ability to integrate between business areas Operational competence and know-how within defined business Established as quality supplier one among others in the crowd of leading players Utilise joint strengths for the benefit of the customer Take out synergies from shared and joint services Improve cooperation, innovation and learning Shape the future together
Amalgamation of the Barber and Barwil organisations will be a key in transforming and improving maritime services We propose the establishment of a new company structure comprising the service offerings from Barber and Barwil.
In the future, we believe customers will integrate our solutions into their operations Customer Value - Uniform approach towards customers - Improved geographical network - Global solutions, streamlined delivery - Product packaging, tailor made solutions - Wider range of service offerings and products - Proactive partnerships with customers, integrated solutions Technology will be a major force in changing how we interact and integrate with customers - New WMS enterprise architecture - Investment in new CRM system A combined product range will strengthen our possibility to integrate with customers.
Wilhelmsen Maritime Services Supermarket analogy Your One-Stop-Shop Marine Supermarket Wilhelmsen Maritime Services Wilhelmsen Marine Services Key Account Management Organisation SHIP MANAGEMENT MARINE CONSULTING FREIGHT FORWARDING & LOGISTICS PORT & MARINE CREWING INSURANCE BUNKERING LINER & NVOCC SOFTWARE Shared Services & Support Organisation
Presentation at Shippingklubben 29 October, 2004