Wallenius Wilhelmsen (WAWI) CMD 2024 summary

Financial performance and capital allocation

• Achieved record financial results in 2023, with 2024 expected to be even stronger, and paid out $738 million in dividends, equating to 100% of free cash flow to equity over the last twelve months; FY 2023 EBITDA reached $1,807m, with Q1 2024 at $438m and Q2 2024 at $507m.

• Dividend policy targets 30%-50% of net profit paid semi-annually, with flexibility for extraordinary dividends or buybacks, and a strong focus on reinvesting 50%-70% of profits into the business.

• Remaining CapEx commitment for newbuilds, including upsize, is $1.2 billion for 12 Shaper class vessels, with attractive financing secured for the first six and further financing planned.

• Strong cash position with $1.6bn group cash as of Q2 2024 and ongoing focus on upstreaming cash from subsidiaries to maximize dividend capacity and investment flexibility.

• Multiple purchase options on chartered vessels are deeply in the money, with a total investment of $235 million versus a market value of $1 billion.

Strategic direction and business model evolution

• Transitioning from a pure shipping company to an integrated supply chain partner, aiming to connect factories directly to end consumers through logistics, shipping, and digital services.

• Logistics now represents a significant and growing part of the business, with a global network of terminals and processing centers, and ambitions for double-digit growth through both organic expansion and M&A.

• Focused on deepening relationships with top customers, offering more integrated and digital solutions, and leveraging digitalization for greater visibility and efficiency.

• Strategy emphasizes adapting to and shaping fundamental industry changes, with a commitment to providing net-zero end-to-end service as a unique market differentiator.

• The company will not be all things to all customers, but will be an integrated partner for select clients, a strong logistics provider for many, and a leading shipping operator.

Business developments and operations

• Integrated global land-based logistics network generated $1.15bn in revenues in 2023, with 8 terminals handling 3 million units and 66 centers processing 6.3 million vehicles.

• Logistics revenue CAGR of 6.3% from 2019-2023, with a 15% EBITDA margin and logistics contributing 9.6% of group EBITDA.

• 70% of the 50 largest customers purchase both shipping and logistics services, with 24% of their revenues from logistics.

• Customer base is diverse, with auto accounting for 60% and high & heavy for 32% of 2023 revenue.

• 45% of 2023 shipping volumes are up for renewal during 2024, with a weighted contract duration of 2.8 years.