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2020

Annual report

The landbased segment

Wallenius Wilhelmsen’s ambition is to substantially grow the landbased segment by expanding the core offering and expanding to full life cycle logistics.

Summary of 2020

Total revenue from the landbased segment for the full year of 2020 was USD 722m, a decline of 20% compared with 2019. Volumes dropped 27% compared to 2019 on temporary OEM plant closures and production cutbacks as a direct effect of COVID19 in H1 2020 before gradually improving in the second half.

Adjusted EBITDA was USD 83m, down USD 42m (-34%) compared to 2019.

All sub-segments experienced reduction in volume in 2020 compared to 2019. The results were negatively affected by plant closures starting in mid-March and continuing well into Q2 2020. As with any significant shift in business/volume it takes time to adjust labour, even more difficult when the length of the downturn is unpredictable. In order to protect the bottom line, the company took aggressive cost-cutting initiatives, specifically in labour management and travel and expenses. Government subsidy was provided in various regions to assist during the pandemic, which positively impacted margins. As an offset, the company made the decision to cover benefit cost for furloughed employees in certain regions.

Solutions Americas (Auto) EBITDA for the full year ended at USD 27m, a 54% reduction from 2019. VSA, a part of Solutions Americas (Auto), was heavily impacted at plant sites and ports with a 26% drop in volume compared to 2019, with the heaviest impact experienced in Q2 with auto volumes lower by 71% YoY. However, Syngin, part of Solutions Americas (Auto), was sheltered by the pandemic and performed slightly better when compared to 2019.

The Solutions Americas (H&H) sub-segment experienced similar closures as VSA, reducing volume 35% compared to 2019 and EBITDA for FY 2020 was USD 11m compared to USD 20m in 2019.

Solutions APAC/EMEA had significant reductions in volume through Q3, which was partially offset with government subsidies. The FY 2020 EBITDA ended at USD 9m, a reduction of 23% since 2019.

Terminals volume fell 21% compared to 2019, with Q2 experiencing the heaviest drop of 50% YoY. However, Terminals EBITDA held up well and ended at USD 40m, only a 4% reduction since 2019, as the volume reduction was countered by an increase in storage, other high-value activities and continued focus on cost savings measures.