Wilh. Wilhelmsen ASA

Earnings Release • Aug 18, 2022

Wilh. Wilhelmsen Holding ASA Second quarter 2022

Highlights Q2 2022

Stable underlying performance for operating companies

• Continued year-over-year growth in operating revenue
• USD 39 million EBITDA

Strong contribution from joint ventures and associates

• USD 41 million share of profit from Wallenius Wilhelmsen

Financial loss

• Hyundai Glovis value down USD 84 million
• Negative FX effect from appreciation of USD

USD 19 million net loss to equity holders of the company - USD -0,42 EPS

Increased shareholding in NorSea to 99%

• Acquiring additional 24% at set option price of NOK 500 million

Refinancing of Maritime Services

Port Services announced as new entity within Maritime Services

Going beyond traditional ships agency offerings, providing a new approach to port call management.

Delivering a standardised range of marine products globally, with consistent documented performance.

Port Services Ships Service Ship Management

One of the world's largest thirdparty ship managers, with skilled hands both on shore and on board.

Other activities

• Insurance Services
• Wilhelmsen Chemicals
• Global Business Services

Increased income and EBITDA

USD 156 million total income

• Up 15% y-o-y.
• Higher operating revenue for all main business activities.
• Price increases to compensate for increased cost.

USD 25 million EBITDA

• Up 10% y-o-y.
• EBITDA margin of 16%.

USD 2 million share of profit from JVs and associates

Ships Service entered into agreement to acquire Stromme

• Specialised cargo hold cleaning company in the marine industry.

Total income and adjusted EBITDA margin *)

Total income Adj EBITDA margin

*) Margin adjusted for main non-recurring items: Q2'19 Property sales gain

Increased income in local currency and stable performance

USD 81 million total income

• Down 5% y-o-y due to strong appreciation of USD versus NOK and other European currencies.
• Operating revenue in local currency up.
• Higher activity in Denmark and full consolidation of Vikan Næringspark Invest.

USD 15 million EBITDA

• Stable y-o-y adjusted for reclassification between financial lease and operating cost after full consolidation of Vikan Næringspark Invest.

USD 3 million share of profit from JVs and associates

• Mainly NorSea JVs and associates.

Total income and adjusted EBITDA margin *)

Strong contribution from Wallenius Wilhelmsen

USD 41 million share of profit from associates

• Continued strong increase in Wallenius Wilhelmsen ASA profit y-o-y.

USD 92 million loss on change in fair value financial assets

• Reduction in Hyundai Glovis value, offsetting first quarter gain.
• USD 1 million net gain on other financials

Negative FX effect on assets values from strong USD

Increased to 99% in NorSea

Wilhelmsen has been a shareholder in NorSea since 2012

• Initial stake of 35%, with option to increase to 40%
• Further increases in 2014 and 2017 to reach 75%

Increased to 99% in Q2 2022

• Acquired 24% for NOK 500 million
• Remaining 1% held by NorSea management

Total equity investment 2012-22 of NOK 1,6 billion

NorSea core to Wilhelmsen's New Energy strategy

• Continue to build a sustainable supply chain for the oil and gas industry
• Expand our business portfolio into new activities that support the energy transition

NorSea - 60 years at the core of the Norwegian offshore industry

Base and logistics services Property management

Complete provider of port services, base and logistics solutions to customers in the oil and gas industry and other maritime industries.

A significant developer and owner of strategic port, logistics and service infrastructure, including in Stavanger, Bergen, Kristiansund, Hammerfest and Esbjerg.

Renewables

On the back of competences and capacities developed from oil and gas services, NorSea is firmly positioned within renewable industries such as offshore wind, hydrogen production and distribution, carbon storage value chains and ocean farming and harvesting.

NorSea at a glance

Outlook

Maritime Services

Supported by a generally positive global shipping market.

Operating companies implementing necessary price increases to compensate for the increase in cost.

New Energy

High energy prices and European supply constraints support a continued high activity level.

Strategic Holdings and Investments

Favorable mid-term prospect for Wallenius Wilhelmsen.

Wilhelmsen group

While uncertainty persists, specifically regarding inflationary pressure, supply chain issues, and the ongoing war in Ukraine, the group retains its capacity to support and grow the portfolio, and of consistent yearly dividend.

Wilh. Wilhelmsen Holding ASA Second quarter 2022

Financials

Stable EBITDA, solid profit from JVs and associates, financial loss

			Q-on-Q		Y-o-Y
USD million	Q2'22	Q1'22	Change	Q2'21	Change
Total income	238	241	-1%	224	6%
- of which operating revenue	239	232	3%	225	6%
- of which gain/(loss) on sale of assets	(1)	9		(1)
EBITDA	39	44	-11%	40	-3%
Operating profit/EBIT	27	27	-1%	23	15%
Share of profit/(loss) from JVs and associates	45	64		10
Change in fair value financial assets	(92)	70		81
Other financial income/(expenses)	(24)	4		1
Profit before tax/EBT	(44)	165		115
Tax income/(expenses)	6	(5)		(3)
Profit for the period	(38)	159		112
Profit to equity holders of the company	(19)	133		89
EPS (USD)	(0.42)	2.97		1.99
Other comprehensive income	(89)	10		(3)
Total comprehensive income	(127)	169		109
Total comp. inc. equity holders of the comp.	(96)	142		86

Low operating cash flow; invested USD 100 million in New Energy

USD 53 million cash outflow from acquiring 24% non-controlling interest in NorSea

Cash flow – YTD Q2'22 (MUSD)

Maritime Services refinanced

USD 300 million revolving credit facility, 5 years, club of 6 banks

Wilhelmsen group total assets and equity ratio

Debt maturity profile

New Energy (ex.lease)

First dividend of NOK 4,00 per share paid 11 May

Potential second dividend of up to NOK 3,00 per share

Dividend payments 1)

Cash to shareholders 2)

Supplementary slides – Second quarter 2022

Maritime Services

Ships Service Port Services Ship Management

New Energy

NorSea Edda Wind ASA

Strategic Holdings and Investments

WalleniusWilhelmsen ASA Treasure ASA Financial investments

Ships Service

Wilhelmsen Ships Service offers a portfolio of maritime solutions to the merchant fleet. Wilhelmsen Ships Service is fully owned by Wilhelmsen.

Q2'22 highlights Total income

• Total income for Ships Service was USD 99 million. This was up 15% from the corresponding period last year and up 5% from the previous quarter. Both higher volumes and price increases had a positive impact on income. Demand for refrigerants and chemicals continued to rise, supported by increased cruise activities. The price increases mainly reflected higher product and freight cost, which is being passed on to the customer.
• In June, Wilhelmsen entered into an agreement to acquire Stromme, a specialised cargo hold cleaning company in the marine industry with offices in Oslo, Hamburg and Singapore.

Total income

Port Services

Wilhelmsen Port Services provides full agency, husbandry, and protective agency services to the merchant fleet. Wilhelmsen Port Services is fully owned by Wilhelmsen.

Q2'22 highlights Total income

• Total income for Port Services was USD 35 million. This was up 13% from the corresponding period last year and up 5% from the previous quarter. The increase was partly due to a generally higher activity level and partly due to increased demand for additional husbandry services. Cruise activity remained behind pre-pandemic levels mainly due to low activity in Asia.

Total income

Ship Management

Wilhelmsen Ship Management provides full technical management, crewing, and related services for all major vessel types. Wilhelmsen Ship Management is fully owned by Wilhelmsen.

Q2'22 highlights Total income

• Total income for Ship Management was USD 17 million, up 36% from the corresponding period previous year and up 3% from the previous quarter. The increase year-over-year primarily related to a new vessel management contract reported on a gross value basis. The increase from previous quarter was mainly due to high project related activities, while number of vessels under management was down.

Material sales gain

Total income (excl. material sales gain)

NorSea

NorSea provides supply bases and integrated logistics solutions to the offshore industry. On 31 May, Wilhelmsen increased the shareholding in NorSea to 99%, acquiring additional 24% at a set option price of NOK 500 million. The remaining 1% is held by NorSea management.

Q2'22 highlights Total income

• Total income for NorSea was USD 70 million in the second quarter. This was down 5% from the corresponding period last year due to a stronger USD, reducing the USD value of income in other currencies. Income in local currencies were up, supported by higher activity in Denmark and the effect from a full consolidation of Vikan Næringspark Invest. Compared with the first quarter, income was up when adjusting for the step-up gain.
• Share of profit from joint ventures and associates in NorSea was USD 2 million.

Material non-operating gain/(loss)

Total income (excl. material non-operating gain) 1)

1) Total income from 1.1.2020 is excluding NorSea Wind

Edda Wind ASA

Edda Wind ASA provides service to the global offshore wind industry and is listed on Oslo Børs. Wilhelmsen owns 25.7% of the company, which is reported as associate in Wilhelmsen's accounts.

• Share of profit from Edda Wind ASA is included with nil for the quarter.
• The book value of the 25.7% shareholding in Edda Wind ASA was USD 52 million at the end of the second quarter.

Q2'22 highlights Market value of Wilhelmsen's investment

Edda Wind ASA

Edda Wind (book value excluding shareholder loan; pre-listing)

Wallenius Wilhelmsen ASA

Wallenius Wilhelmsen ASA is a market leader in RoRo shipping and vehicle logistics and is listed on Oslo Børs. Wilhelmsen owns 37.8% of the company, which is reported as associate in Wilhelmsen's accounts.

• Share of profit from Wallenius Wilhelmsen ASA was USD 41 million in the quarter. This was up from USD 5 million in the corresponding period last year, but below the USD 61 million reported in the previous quarter.
• The book value of the 37.8% shareholding in Wallenius Wilhelmsen ASA was USD 970 million at the end of the second quarter.

Q2'22 highlights Market value of Wilhelmsen's investment

Wallenius Wilhelmsen ASA

Photo: Wallenius Wilhelmsen.

Treasure ASA

Treasure ASA holds a 11.0% ownership interest in Hyundai Glovis and is listed on Oslo Børs. Wilhelmsen owns 77.0% of Treasure ASA.

• Change in fair value of the shareholding in Hyundai Glovis was a loss of USD 84 million for the quarter, reversing a USD 71 million gain in the previous quarter. The value of the investment in Hyundai Glovis was USD 570 million at the end of the second quarter.
• Treasure ASA completed the liquidation of 6 000 000 own shares on 21 June, reducing the number of issued shares from 213 835 000 to 207 835 000. Wilhelmsen owns 160 million shares in Treasure ASA, representing 77.0% of issued shares.

Q2'22 highlights Market value of Wilhelmsen's investment

Treasure ASA

Hyundai Glovis.

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 Strategic Holdings and Investments segment.

• Net income from investment management was an expense of USD 2 million for the quarter. The market value of current financial investments was USD 95 million by the end of the second quarter.
• Change in fair value of non-current financial assets was a loss of USD 8 million for the quarter. The market value at the end of the second quarter was USD 70 million.
• During the quarter, Wilhelmsen reduced its holding of current financial investments and non-current financial assets.

Q2'22 highlights Market value of Wilhelmsen's financial investments

• Non-current financial investments Current financial investments
• Cash