Quarterly Report • May 4, 2022
Quarterly Report
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WILH. WILHELMSEN HOLDING ASA
Wilhelmsen delivered improved EBITDA and a strong contribution from associates and financial assets in the first quarter, resulting in a net profit of USD 159 million for the quarter. Net profit to equity holders of the company was USD 133 million, equal to USD 2.97 EPS.
USD 44 million in EBITDA.
USD 64 million share of profit from joint ventures and associates.
• Continued strong contribution from Wallenius Wilhelmsen.
USD 74 million in net financial items.
• Increased value of shareholding in Hyundai Glovis.
Significant investments:
The annual general meeting on 27 April approved the board proposal for a first dividend of NOK 4.00 per share and authorised the board to declare a second dividend of up to NOK 3.00 per share.
| USD million | Q-on-Q | Y-o-Y | |||
|---|---|---|---|---|---|
| Q1'22 | Q4'21 | Change | Q1'21 | Change | |
| Total income | 241 | 233 | 3% | 201 | 20% |
| of which operating revenue | 232 | 228 | 2% | 203 | 14% |
| of which other gain/(loss) | 9 | 5 | (2) | ||
| EBITDA | 44 | 31 | 40% | 31 | 41% |
| Operating profit/EBIT | 27 | 14 | 91% | 14 | 92% |
| Share of profit/(loss) from JVs and associates | 64 | 63 | 1% | 5 | >500% |
| Financial items | 74 | (4) | (0) | ||
| of which change in fair value financial assets | 70 | 1 | (9) | ||
| of which other financial income/(expenses) | 4 | (4) | 9 | ||
| Profit/(loss) before tax/EBT | 165 | 73 | 124% | 19 | >500% |
| Tax income/(expenses) | (5) | (6) | (2) | ||
| Profit/(loss) for the period | 159 | 67 | 137% | 16 | >500% |
| Profit/(loss) to equity holders of the company | 133 | 67 | 99% | 16 | >500% |
| EPS (USD) | 2.97 | 1.46 | 103% | 0.35 | >500% |
| Other comprehensive income | 10 | (4) | (8) | ||
| Total comprehensive income | 169 | 63 | 169% | 8 | >500% |
| Total comp. income equity holder of the company | 142 | 64 | 120% | 8 | >500% |
| Total assets | 3,703 | 3,448 | 7% | 3,502 | 6% |
| Shareholders' equity | 2,150 | 2,009 | 7% | 2,016 | 7% |
| Total equity | 2,393 | 2,230 | 7% | 2,268 | 6% |
| Equity ratio | 65% | 65% | 0% | 65% | 0% |
Total income for the Wilh. Wilhelmsen Holding ASA group (referred to as Wilhelmsen or group) was USD 241 million in the first quarter of 2022, up 20% from the corresponding period last year and up 3% from the previous quarter. The positive trend with year-over-year growth in operating revenue continued.
EBITDA was USD 44 million, up 41% from one year earlier and up 40% from the previous quarter. EBITDA was lifted by improved underlying earnings in both Maritime Services and New Energy and a step-up gain from the increased investment in Vikan Næringspark, partly offset by provisions related to a fraud case and potential losses linked to the Russian invasion of Ukraine. The net effect of the step-up gain and the provisions was a gain of USD 7 million.
Share of profit from joint ventures and associates was USD 64 million. This was in line with the previous quarter and a strong improvement from one year earlier mainly due to higher contribution from Wallenius Wilhelmsen ASA.
Financial items were positive with USD 74 million, of which USD 70 million from change in fair value of financial assets.
Net profit to equity holders of the company was USD 133 million for the quarter, equal to USD 2.97 earnings per share (EPS).
Total comprehensive income, including net profit and other comprehensive income, attributable to equity holders of the company was USD 142 million.
Total assets were up 7% in the first quarter. The increase followed from increased value of Wallenius Wilhelmsen
ASA and Hyundai Glovis, increased shareholding from 50% to 100% in Vikan Næringspark Invest AS, and the investment in Reach Subsea ASA.
Shareholders' equity was also up 7% for the quarter, to USD 2 150 million. As of 31 March, the group equity ratio was 65%.
| USD million | Cash & cash equiv. |
Curr. fin. inv. |
IBD | Lease liabil. |
NIBD |
|---|---|---|---|---|---|
| Maritime Services | 150 | 0 | 200 | 36 | 86 |
| New Energy | 9 | 0 | 349 | 101 | 441 |
| Strategic Holdings and Inv. | 24 | 110 | 15 | 35 | (84) |
| Elimination | 0 | 0 | 0 | (11) | (11) |
| Wilhelmsen group | 183 | 110 | 565 | 160 | 431 |
Cash and cash equivalents were USD 183 million at the end of the first quarter, down USD 48 million from the previous quarter. The reduction was mainly due to a net outflow of USD 44 million related to investing activities. An increase in working capital resulted in a low USD 3 million in cash from operating activities for the quarter.
Total interest-bearing debt including lease liabilities was USD 725 million by the end of the quarter, up USD 82 million from the previous quarter. The increase was mainly related to the increased ownership of Vikan Næringspark Invest AS, including consolidation of debt.
The annual general meeting on 27 April approved the board proposal for a first dividend of NOK 4.00 per share and authorises the board to declare a second dividend of up to NOK 3.00 per share. The first dividend of NOK 4.00 will be paid on 11 May.
Wilh. Wilhelmsen Holding group Q1 2022 unaudited 3 of 24
This includes Ships Service, Ship Management, and other activities reported under the Maritime Services segment.
| USD million | Q-on-Q | Y-o-Y | |||
|---|---|---|---|---|---|
| Q1'22 | Q4'21 | Change | Q1'21 | Change | |
| Total income | 154 | 153 | 1% | 130 | 18% |
| of which Ships Service | 137 | 134 | 2% | 118 | 16% |
| of which Ship Management | 16 | 19 | -13% | 12 | 37% |
| of which other activities/eliminations | 0 | (0) | 0 | ||
| EBITDA | 20 | 24 | -16% | 19 | 6% |
| EBITDA margin (%) | 13% | 16% | 15% | ||
| Operating profit/EBIT | 14 | 17 | -20% | 12 | 13% |
| EBIT margin (%) | 9% | 11% | 9% | ||
| Share of profit/(loss) from JVs and associates | 1 | 1 | 1 | ||
| Financial items | 4 | 0 | (8) | ||
| Tax income/(expense) | (4) | (3) | (1) | ||
| Profit/(loss) | 15 | 16 | -9% | 4 | 235% |
| Profit margin (%) | 9% | 10% | 3% | ||
| Non controlling interests | 1 | 0 | (0) | ||
| Profit/(loss) to equity holders of the company | 14 | 16 | -12% | 5 | 192% |
Total income for the Maritime Services segment was USD 154 million in the first quarter. This was up 18% from the corresponding period last year and up 1% from the previous quarter. The year-over-year increase reflected higher operating income across all main business activities.
EBITDA was USD 20 million, up 6% year-over-year but down 16% from the previous quarter. EBITDA includes a provision of USD 3 million for potential losses related to the Russian invasion of Ukraine.
Share of profit from joint ventures and associates was USD 1 million. Financial items were an income of USD 4 million, including a net FX gain of USD 5 million. Tax was included with an expense of USD 4 million.
The quarter ended with a profit to equity holders of the company of USD 14 million.
Wilhelmsen Ships Service is a global provider of standardised product brands and service solutions to the maritime industry, focusing on Marine Products and Ships Agency. Wilhelmsen Ships Service is fully owned by Wilhelmsen.
Total income for Ships Service was USD 137 million. This was up 16% from the corresponding period previous year and up 2% from the previous quarter. The general increase in shipping activities continued, lifting total income for both Marine Products and Ships Agency on a year-overyear basis. When compared with the previous quarter, income was up for Marine Products, while income was slightly down for Ships Agency.
EBITDA was up year-over-year, but below the previous quarter due to increased raw material prices and freight costs.
Wilhelmsen Ship Management provides full technical management, crewing, and related services for all major vessel types. Wilhelmsen Ship Management is fully owned by Wilhelmsen.
Total income for Ship Management was USD 16 million, up 37% from the corresponding period previous year and down 13% from the previous quarter. The increase yearover-year primarily related to a new vessel management contract reported on a gross value basis, while the reduction from the previous quarter mainly related to changes in reporting of the same contract.
EBITDA was up both year-over-year and compared with the previous quarter.
In January, Wilhelmsen Ship Management strengthened its position in the tanker market through an agreement to acquire a majority stake in Hamburg-based ship management company Ahrenkiel Tankers.
This includes Wilhelmsen Insurance Services (fully owned by Wilhelmsen) and certain other activities reported under the Maritime Services segment.
Income and EBITDA for other Maritime Services activities were stable.
This includes NorSea Group, Edda Wind ASA, and other activities reported under the New Energy segment.
| USD million | Q-on-Q | Y-o-Y | |||
|---|---|---|---|---|---|
| Q1'22 | Q4'21 | Change | Q1'21 | Change | |
| Total income | 93 | 79 | 18% | 70 | 32% |
| of which NorSea Group | 84 | 69 | 21% | 61 | 37% |
| of which other activities/eliminations | 9 | 9 | -6% | 9 | -2% |
| EBITDA | 31 | 11 | 193% | 14 | 123% |
| EBITDA margin (%) | 34% | 14% | 20% | ||
| Operating profit/EBIT | 22 | 2 | >500% | 5 | 335% |
| EBIT margin (%) | 24% | 2% | 7% | ||
| Share of profit/(loss) from JVs and associates | 2 | 3 | -43% | 3 | -39% |
| Financial items | (4) | (6) | (4) | ||
| Tax income/(expense) | 1 | (3) | 0 | ||
| Profit/(loss) | 21 | (4) | neg. | 4 | 461% |
| Profit margin (%) | 23% | -5% | 5% | ||
| Non controlling interests | 5 | 0 | 1 | ||
| Profit/(loss) to equity holders of the company | 15 | (4) | neg. | 2 | >500% |
Total income for the New Energy segment was USD 93 million in the first quarter, including a USD 17 million step-up gain from the increased shareholding in Vikan Næringspark Invest AS. Adjusting for the step-up gain, income was up 8% from the corresponding period last year but down 4% from the previous quarter.
EBITDA was USD 31 million, lifted by the step-up gain. Adjusted for the gain, EBITDA was on par with the corresponding period last year and up 33% from the previous quarter.
Share of profit from joint ventures and associates was USD 2 million in the fourth quarter, while financial items were included with a net expense of USD 4 million.
Profit to equity holders of the company was USD 15 million for the quarter.
NorSea Group provides supply bases and integrated logistics solutions to the offshore industry. Wilhelmsen owns 75.2% of NorSea Group.
Total income for NorSea Group was USD 84 million in the first quarter. Operating revenue was USD 67 million, up 9% from corresponding period and in line the previous quarter. The increase from previous year followed a general higher activity level, including related to logistics services.
In March, NorSea Group bought the remaining 50% of the shares in Vikan Næringspark Invest AS, increasing ownership to 100%. This resulted in a USD 17 million non-cash step up gain from the change in accounting from associate to subsidiary of the originally held 50% ownership.
EBITDA was up for the quarter due to the step-up gain and improved contribution from operating activities.
Share of profit from joint ventures and associates in NorSea Group was USD 2 million.
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 55 million at the end of the first quarter.
This includes NorSea Wind (owned 50% by NorSea Group and 50% by Wilhelmsen Ship Management), Reach Subsea ASA (owned 21%), Raa Labs AS (fully owned), Massterly AS (owned 50%), Dolittle AS (owned 46%) and certain other activities reported under the New Energy segment.
Total income from NorSea Wind activities was USD 8 million in the first quarter, up year-over-year but down from the previous quarter.
In February, Wilhelmsen New Energy AS entered into an agreement to acquire 21% of Reach Subsea ASA, a subsea service provider listed on Oslo Børs. The transaction was completed in March. Reach Subsea ASA is reported as associate in Wilhelmsen's account, and the book value was USD 17 million at the end of the first quarter.
This includes the strategic holdings in Wallenius Wilhelmsen ASA and Treasure ASA, other financial and non-financial investments, and other activities reported under the Strategic Holdings and Investments segment.
| USD million | Q-on-Q | Y-o-Y | |||
|---|---|---|---|---|---|
| Q1'22 | Q4'21 | Change | Q1'21 | Change | |
| Total income | (2) | 5 | neg. | 4 | neg. |
| of which operating revenue | 4 | 5 | -3% | 4 | 7% |
| of which gain/(loss) on sale of assets | (7) | 0 | 0 | ||
| EBITDA | (8) | (4) | (2) | ||
| Operating profit/EBIT | (9) | (5) | (3) | ||
| Share of profit/(loss) from JVs and associates | 61 | 59 | 3% | 1 | >500% |
| of which Wallenius Wilhelmsen ASA | 61 | 59 | 3% | 1 | >500% |
| of which other/eliminations | 0 | (0) | 0 | ||
| Change in fair value financial assets | 70 | 1 | (9) | ||
| of which Hyundai Glovis | 71 | 3 | (12) | ||
| of which other financial assets | (1) | (2) | 3 | ||
| Other financial income/(expenses) | 4 | 1 | >500% | 21 | -80% |
| of which investment management in parent | (8) | 1 | 10 | ||
| of which dividend income Hyundai Glovis | 13 | (0) | 13 | ||
| of which other financial income/(expense) | (1) | 1 | (2) | ||
| Tax income/(expense) | (2) | (0) | (1) | ||
| Profit/(loss) for the period | 124 | 55 | 8 | ||
| Non controlling interests | 21 | (0) | (0) | ||
| Profit/(loss) to equity holders of the company | 103 | 55 | 9 |
The Strategic Holdings and Investments segment reported a USD 103 million profit to equity holders of the company in the first quarter. This reflected a continued strong contribution from Wallenius Wilhelmsen ASA and a material positive change in market value of the investment in Hyundai Glovis.
The quarter includes a USD 7 million provision related to a fraud case. Total exposure is USD 17 million. The fraud case is subject to criminal procedures in four jurisdictions.
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 61 million in the quarter. This was up from USD 1 million in the corresponding period last year, and up from USD 59 million in the previous quarter.
The book value of the 37.8% shareholding in Wallenius Wilhelmsen ASA was USD 947 million at the end of the first quarter.
Treasure ASA holds a 11.0% ownership interest in Hyundai Glovis and is listed on Oslo Børs. Wilhelmsen owns 74.8% of Treasure ASA.
Change in fair value of the shareholding in Hyundai Glovis was a gain of USD 71 million for the quarter, while dividend income from Hyundai Glovis was included with USD 13 million. The value of the investment in Hyundai Glovis was USD 654 million at the end of the first quarter. The annual general meeting of Treasure ASA on 15 March passed a resolution to liquidate 6 000 000 own shares. Once completed, the number of issued shares will be reduced from 213 835 000 to 207 835 000, and the Wilhelmsen shareholding will increase to 77.0%.
Financial investments include cash and cash equivalents, current financial investments and other financial assets held by the parent and fully owned subsidiaries.
Net income from investment management was an expense of USD 8 million for the quarter. The market value of current financial investments was USD 110 million by the end of the first quarter.
Change in fair value of non-current financial assets was a loss of USD 1 million for the quarter. The market value at the end of the first quarter was USD 107 million.
This includes WilNor Governmental Services (owned 51% directly and 49% through NorSea Group), holding company activities, and certain other activities reported under the Strategic Holdings and Investments segment.
EBITDA was a loss of USD 8 million for the quarter. This mainly related to provisions for the fraud case and general holding company activities.
This includes Ships Service (Marine Products and Ships Agencies), Ship Management, and other activities reported under the Maritime Services segment.
The present high activity level within most shipping segments is expected to continue, and with further upside potential related to cruise. This will have a positive impact on operating income.
In the second quarter, Ships Services will be re-organized and Ships Agency activities separated into a new entity named Port Services. Maritime Services will then operate with three main business units: Ships Service, Port Services, and Ship Management.
This includes NorSea Group, Edda Wind, and other activities reported under the New Energy segment.
Seasonality will continue to impact NorSea Group's offshore activities, with an expected increase in operating revenue during the second and third quarter.
Edda Wind ASA has during the first quarter continued to expand its fleet through ordering three new vessels. Edda Wind expects that having a number of vessels under construction with attractive delivery dates and firm cost places the company in a favorable position.
This includes the strategic holdings in Wallenius Wilhelmsen ASA and Treasure ASA, other financial and non-financial investments, and other activities reported under the Strategic Holdings and Investments segment.
The market value of the strategic holdings and investments will continue to fluctuate, influenced by the underlying operational performance and expectations related to the respective companies, and by the general equity market.
The increase in share of net profit from Wallenius Wilhelmsen ASA has continued in 2022. Wallenius Wilhelmsen expects the supply-demand balance in its shipping activities to remain favorable over the mid-term.
Wilhelmsen's ambition is to develop successful businesses within maritime services, shipping, logistics, renewables, and related infrastructure through active ownership.
While uncertainty persists, specifically regarding inflationary pressure and the ongoing war in Ukraine, the underlying trend remains positive supporting a gradual growth in operating income from continued operations.
Lysaker, 4 May 2022 The board of directors of Wilh. Wilhelmsen Holding ASA
Forward-looking statements presented in this report are based on various assumptions. These assumptions were reasonable when made, but as assumptions are inherently subject to uncertainties and contingencies which are difficult or impossible to predict, Wilhelmsen cannot give assurances that expectations regarding the outlook will be achieved or accomplished.
| USD mill | Note | Q1 2022 |
Q1 2021 |
Full year 2021 |
|---|---|---|---|---|
| Operating revenue | 232 | 203 | 873 | |
| Other income | ||||
| Other gain/(loss) | 5 | 9 | (2) | 2 |
| Total income | 241 | 201 | 874 | |
| Operating expenses | ||||
| Cost of goods and change in inventory | (75) | (59) | (277) | |
| Employee benefits | (84) | (78) | (321) | |
| Other expenses | (38) | (32) | (136) | |
| Operating profit before depreciation and amortisation | 44 | 31 | 141 | |
| Depreciation, amortisation and impairment | 7/8 | (17) | (17) | (68) |
| Operating profit | 27 | 14 | 73 | |
| Share of profit from joint ventures and associates | 4 | 64 | 5 | 101 |
| Financial items | ||||
| Change in fair value financial assets | 10 | 70 | (9) | (107) |
| Other financial income/(expenses) | 11 | 4 | 9 | (1) |
| Net financial items | 74 | (0) | (108) | |
| Profit before tax | 165 | 19 | 66 | |
| Tax income/(expense) | (5) | (2) | (13) | |
| Profit for the period | 159 | 16 | 53 | |
| Attributable to: equity holders of the company | 133 | 1 | 72 | |
| non-controlling interests | 27 | 16 | (20) | |
| Basic earnings per share (USD) | 9 | 2,97 | 0,35 | 1,63 |
| Comprehensive income - financial report | ||||
| Q1 | Q1 | Full year | ||
| USD mill | 2022 | 2021 | 2021 | |
| Profit for the period | 159 | 16 | 53 | |
| Items that may be reclassified to income statement | ||||
| Cash flow hedges (net after tax) | 2 | 2 | 4 | |
| Comprehensive income from associates | (0) | (0) | 4 | |
| Currency translation differences | 7 | (9) | (44) | |
| Items that will not be reclassified to income statement | ||||
| Remeasurement postemployment benefits, net of tax | 1 | |||
| Other comprehensive income, net of tax | 10 | (8) | (35) | |
| Total comprehensive income for the period | 169 | 8 | 17 | |
| Total comprehensive income attributable to: | ||||
| Equity holders of the company | 142 | 8 | 41 | |
| Non-controlling interests | 27 | 1 | (23) | |
| Total comprehensive income for the period | 169 | 8 | 17 |
| USD mill | Note | 31.03.2022 | 31.03.2021 | 31.12.2021 |
|---|---|---|---|---|
| Deferred tax assets | 6 | 58 | 57 | 64 |
| Goodwill and other intangible assets | 7 | 137 | 140 | 135 |
| Properties and other tangible assets | 7 | 684 | 566 | 542 |
| Right-of-use assets | 8 | 146 | 156 | 155 |
| Investments in joint ventures and associates | 4 | 1 154 | 996 | 1 093 |
| Financial assets to fair value | 10 | 761 | 789 | 688 |
| Other non current assets | 30 | 18 | 25 | |
| Total non current assets | 2 971 | 2 724 | 2 702 | |
| Inventory | 94 | 78 | 93 | |
| Current financial investments | 110 | 122 | 135 | |
| Other current assets | 344 | 294 | 287 | |
| Cash and cash equivalents | 183 | 285 | 231 | |
| Total current assets | 732 | 778 | 746 | |
| Total assets | 3 703 | 3 502 | 3 448 | |
| Paid-in capital | 8 | 118 | 122 | 118 |
| Retained earnings | 9/12 | 2 033 | 1 894 | 1 891 |
| Shareholders' equity | 2 150 | 2 016 | 2 009 | |
| Non-controlling interests | 243 | 252 | 221 | |
| Total equity | 2 393 | 2 268 | 2 230 | |
| Pension liabilities | 26 | 25 | 26 | |
| Deferred tax liabilities | 6 | 11 | 11 | 11 |
| Non-current interest-bearing debt | 13/14 | 302 | 422 | 203 |
| Non-current lease liabilities | 8/13 | 131 | 140 | 139 |
| Other non-current liabilities | 17 | 23 | 17 | |
| Total non current liabilities | 488 | 621 | 396 | |
| Current income tax | 13 | 13 | 13 | |
| Public duties payable Current interest-bearing debt |
13/14 | 11 263 |
12 73 |
13 270 |
| Current lease liabilities | 8/13 | 29 | 32 | 30 |
| Other current liabilities | 506 | 483 | 495 | |
| Total current liabilities | 822 | 613 | 821 | |
| Total equity and liabilities | 3 703 | 3 502 | 3 448 | |
| USD mill | Q1 | Q1 | Full year | |
|---|---|---|---|---|
| Note | 2022 | 2021 | 2021 | |
| Cash flow from operating activities | ||||
| Profit before tax | 165 | 19 | 66 | |
| Share of (profit)/loss from joint ventures and associates | (64) | (5) | (101) | |
| Changes in fair value financial assets | 10 | (70) | 9 | 107 |
| Other financial (income)/expenses | (4) | (9) | 1 | |
| Depreciation, amortisation and impairment | 7/8 | 17 | 17 | 68 |
| Other (gain)/loss | 5 | (9) | 2 | (2) |
| Change in net pension asset/liability | 0 | (0) | 1 | |
| Change in inventories | (1) | 7 | (13) | |
| Change in working capital | (30) | (8) | 8 | |
| Tax paid (company income tax, withholding tax) | (1) | (2) | (14) | |
| Net cash provided by operating activities | 3 | 29 | 122 | |
| Cash flow from investing activities | ||||
| Dividend received from joint ventures and associates | 1 | 1 | 13 | |
| Proceeds from sale of fixed assets | 7/8 | 1 | 6 | 26 |
| Investments in fixed assets | 7 | (9) | (11) | (45) |
| Investments in subsidiaries, joint ventures and associates | (48) | (30) | (36) | |
| Loan repayments received from sale of subsidiaries | (0) | - | 2 | |
| Loans granted to joint ventures and associates | - | - | (16) | |
| Proceeds from dividend and sale of financial investments | 15 | 22 | 62 | |
| Purchase of current financial investments | (1) | (10) | (54) | |
| Interest received | 0 | 0 | 1 | |
| Changes in other investments | (2) | - | (6) | |
| Net cash flow from investing activities | (44) | (23) | (53) | |
| Cash flow from financing activities | ||||
| Net proceeds from issue of debt after debt expenses | 48 | 22 | 70 | |
| Repayment of debt | (32) | (1) | (71) | |
| Repayment of lease liabilities | (11) | (8) | (30) | |
| Interest paid including interest derivatives | (4) | (4) | (15) | |
| Interest paid lease liabilities | (2) | (2) | (9) | |
| Cash from/ to financial derivatives | (1) | 3 | 7 | |
| Dividend to shareholders/purchase of own shares | (5) | - | (58) | |
| Net cash flow from financing activities | (7) | 10 | (106) | |
| Net increase in cash and cash equivalents 1 | (48) | 16 | (37) | |
| Cash and cash equivalents at the beg. of the period 1 | 231 | 269 | 269 | |
| Cash and cash equivalents at the end of the period 1 | 183 | 285 | 231 |
The group is located and operating world wide, and every entity has several bank accounts in different currencies. Unrealised currency effects are included in net cash provided by operating activities.
| USD mill | Share capital | Own shares | Retained earnings* |
Total | Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|
| Balance at 31.12.2021 | 118 | 0 | 1 891 | 2 009 | 221 | 2 230 |
| Profit for the period | 133 | 133 | 27 | 159 | ||
| Other comprehensive income | 9 | 9 | 1 | 10 | ||
| Paid dividend to shareholders | (5) | (5) | ||||
| Balance 31.03.2022 | 118 | 0 | 2 032 | 2 150 | 243 | 2 393 |
* Treasure ASA hold 6.000.000 own shares 31 March 2022.
| Balance at 31.12.2020 | 122 | (4) | 1 890 | 2 008 | 257 | 2 265 |
|---|---|---|---|---|---|---|
| Profit for the period | 16 | 16 | 1 | 16 | ||
| Other comprehensive income | (8) | (8) | 0 | (8) | ||
| Change in non-controlling interests | - | 5 | 5 | |||
| Accrued dividend to shareholders | - | (10) | (10) | |||
| Balance 31.03.2021 | 122 | (4) | 1 898 | 2 016 | 252 | 2 268 |
| Retained | Non controlling |
|||||
|---|---|---|---|---|---|---|
| USD mill | Share capital | Own shares | earnings | Total | interests | Total equity |
| Balance at 31.12.2020 | 122 | (4) | 1 890 | 2 008 | 257 | 2 265 |
| Profit/(loss) for the period | 72 | 72 | (20) | 53 | ||
| Other comprehensive income | (32) | (32) | (3) | (35) | ||
| Liquidation of own shares | (4) | 4 | 0 | 0 | ||
| Change in non-controlling interests | 10 | 10 | (4) | 6 | ||
| Purchase of own shares Treasure Group* | (8) | (8) | (8) | |||
| Paid dividend to shareholders | (42) | (42) | (8) | (50) | ||
| Balance 31.12.2021 | 118 | 0 | 1 891 | 2 009 | 221 | 2 230 |
* Treasure ASA hold 6.000.000 own shares 31 December 2021.
This consolidated interim financial report has been prepared in accordance with International Accounting Standards (IAS 34), "interim financial reporting". The consolidated interim financial reporting should be read in conjunction with the annual financial statements for the year end 31 December 2021 for Wilh.Wilhelmsen Holding ASA group, which has been prepared in accordance with IFRS endorsed by the EU.
Acquisition of the remaining part of shares 50% in Vikan Næringspark Invest AS. Reclassed from investment in associates to wholly owned subsidiary of NorSea group.
No material disposals or acquistion in Q2, Q3 or Q4. During Q1 2021 the group acquired additional 25% of Edda Wind group however after the IPO in Q4 2021, the stake was diluted to 25.66%.
The accounting policies implemented are consistent with those of the annual financial statements for WWI for the year end 31 December 2021.
As a result of rounding adjustments, the figures in one or more columns may not add up to the total of that column.
Acquisition of 21% stake in Reach Subsea ASA and classified as investment in associates. Acquisition of 80% of the shares in Ahrenkiel Tankers and renamed to Barber Ship Management.
| Strategic | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Maritime | Holdings and | WWH group | ||||||||
| USD mill | Services | New Energy | Investments | Eliminations | total | |||||
| Quarter Note |
Q1 2022 |
Q1 2021 |
Q1 2022 |
Q1 2021 |
Q1 2022 |
Q1 2021 |
Q1 2022 |
Q1 2021 |
Q1 2022 |
Q1 2021 |
| Operating revenue | 155 | 132 | 76 | 70 | 4 | 4 | (3) | (3) | 232 | 203 |
| Other gain/(loss) 5 |
(1) | (2) | 17 | 0 | (7) | - | - | - | 9 | (2) |
| Total income | 154 | 130 | 93 | 70 | (2) | 4 | (3) | (3) | 241 | 201 |
| Operating expenses | ||||||||||
| Cost of goods and change in inventory | (55) | (43) | (20) | (16) | (0) | (0) | 0 | 0 | (75) (59) | |
| Employee benefits | (54) | (49) | (27) | (25) | (2) | (4) | 0 | 0 | (84) (78) | |
| Other expenses | (24) | (19) | (14) | (14) | (3) | (2) | 3 | 3 | (38) (32) | |
| Operating profit/(loss) before depreciation and | ||||||||||
| amortisation | 20 | 19 | 31 | 14 | (8) | (2) | - | (0) | 44 | 31 |
| Depreciation and impairments | (6) | (7) | (9) | (9) | (1) | (1) | - | - | (17) (17) | |
| Operating profit/(loss) | 14 | 12 | 22 | 5 | (9) | (3) | - | (0) | 27 | 14 |
| Share of profit from joint ventures and associates | 1 | 1 | 2 | 3 | 61 | 1 | - | - | 64 | 5 |
| Financial items | ||||||||||
| Change in fair value financial assets | - | - | - | - | 70 | (9) | - | 70 | (9) | |
| Other financial income/(expenses) | 4 | (8) | (4) | (4) | 4 | 21 | 0 | 4 | 9 | |
| Net financial items | 4 | (8) | (4) | (4) | 74 | 12 | 0 | (0) | 74 | (0) |
| Profit/(loss) before tax | 19 | 6 | 20 | 4 | 126 | 10 | 0 | (0) | 165 | 19 |
| Tax income/(expense) | (4) | (1) | 1 | 0 | (2) | (1) | - | - | (5) | (2) |
| Profit/(loss) | 15 | 4 | 21 | 4 | 124 | 8 | 0 | (0) | 159 | 16 |
| Non-controlling interests | 1 | (0) | 5 | 1 | 21 | (0) | - | - | 27 | 1 |
| Profit/(loss) to the equity holders of the | ||||||||||
| company | 14 | 5 | 15 | 2 | 103 | 9 | 0 | (0) | 133 | 16 |
| Strategic Holdings | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| USD mill | Maritime Services | New Energy | and Investments | Eliminations | Total | |||||
| 31.03 | 31.03 | 31.03 | 31.03 | 31.03 | 31.03 | 31.03 | 31.03 | 31.03 | 31.03 | |
| Year to date | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 |
| Assets | ||||||||||
| Deferred tax asset | 46 | 42 | 2 | 7 | 10 | 9 | - | - | 58 | 57 |
| Intangible assets | 130 | 132 | 6 | 7 | 0 | 1 | - | - | 137 | 140 |
| Tangible assets | 156 | 171 | 511 | 378 | 17 | 18 | - | - | 684 | 566 |
| Right of use assets | 34 | 39 | 90 | 105 | 33 | 17 | (11) | (5) | 146 | 156 |
| Investments in joint ventures and associates | 23 | 22 | 184 | 176 | 947 | 798 | - | - | 1 154 | 996 |
| Financial assets to fair value | 0 | 0 | 0 | (0) | 761 | 789 | - | - | 761 | 789 |
| Other non current assets | 9 | 10 | 28 | 18 | 2 | 0 | (9) | (10) | 30 | 18 |
| Current financial investments | 0 | 0 | - | - | 110 | 122 | - | - | 110 | 122 |
| Other current assets | 348 | 281 | 80 | 77 | 60 | 48 | (48) | (34) | 438 | 371 |
| Cash and cash equivalents | 150 | 190 | 9 | 5 | 24 | 90 | - | - | 183 | 285 |
| Total assets | 897 | 887 | 910 | 772 | 1 965 | 1 892 | (68) | (49) 3 703 | 3 502 | |
| Equity and liabilities | ||||||||||
| Equity majority | 199 | 207 | 273 | 213 | 1 678 | 1 597 | 0 | 0 | 2 150 | 2 016 |
| Equity non-controlling interest | (1) | (2) | 70 | 58 | 173 | 196 | - | - | 243 | 252 |
| Deferred tax | 11 | 11 | 0 | 0 | 0 | 0 | - | - | 11 | 11 |
| Interest-bearing debt | 200 | 200 | 349 | 264 | 15 | 32 | - | (0) | 565 | 495 |
| Lease liabilities | 36 | 42 | 101 | 116 | 35 | 18 | (11) | (5) | 160 | 171 |
| Other non current liabilities | 26 | 24 | 9 | 15 | 17 | 17 | (9) | (9) | 43 | 48 |
| Other current liabilities | 425 | 406 | 107 | 106 | 47 | 31 | (48) | (34) | 530 | 508 |
| Total equity and liabilities | 897 | 887 | 910 | 772 | 1 965 | 1 892 | (68) | (49) 3 703 | 3 502 |
| USD mill | Maritime Services | New Energy | Strategic Holdings and Investments |
|||
|---|---|---|---|---|---|---|
| Quarter | Q1 2022 | Q1 2021 | Q1 2022 | Q1 2021 | Q1 2022 | Q1 2021 |
| Profit/(loss) before tax | 19 | 6 | 20 | 4 | 126 | 10 |
| Change in fair value financial assets | - | - | - | - | (70) | 9 |
| Share of (profit)/loss from joint ventures and associates | (1) | (1) | (2) | (3) | (61) | (1) |
| Other financial (income)/expenses | (4) | 8 | 4 | 4 | (4) | (21) |
| Depreciation/impairment | 6 | 7 | 9 | 9 | 1 | 1 |
| Change in working capital | (23) | 1 | 6 | (2) | (6) | (6) |
| Net (gain)/loss from sale of assets | 1 | 2 | (17) | (0) | 7 | - |
| Net cash provided by operating activities | (1) | 22 | 20 | 13 | (6) | (7) |
| Dividend received from joint ventures and associates | 1 | 1 | (2) | 0 | - | |
| Net sale/(investments) in fixed assets | (3) | (3) | (6) | (3) | (0) | |
| Net sale/(investments) and repayment/(granted loan) to entities | (17) | (0) | (47) | (22) | 0 | (8) |
| Purchase of current financial investments | 0 | 0 | 0 | 0 | 15 | 12 |
| Net changes in other investments/financial items | - | - | (2) | 5 | (17) | |
| Net cash flow from investing activities | (19) | (2) | (56) | (20) | (3) | 4 |
| Net change of debt | (1) | (3) | 42 | 4 | (12) | 28 |
| Net change in other financial items | (3) | (2) | (4) | (4) | 0 | 3 |
| Net dividend/ loan from other segments/ to shareholders | 1 | (0) | 0 | 1 | (5) | (20) |
| Net cash flow from financing activities | (3) | (5) | 38 | 1 | (17) | 11 |
| Net increase in cash and cash equivalents | (23) | 15 | 2 | (7) | (26) | 8 |
| Cash and cash equivalents at the beg.of the period | 174 | 174 | 7 | 12 | 50 | 83 |
| Cash and cash equivalents at the end of period | 150 | 190 | 9 | 5 | 24 | 90 |
Note 4 - Investment in joint ventures and associates Joint ventures and associates at end March 2022 are:
| USD mill | |||
|---|---|---|---|
| 31.03.2022 | 31.03.2021 | ||
| Strategic Holdings and Investments: | Ownership | Booked value | Booked value |
| Wallenius Wilhelmsen ASA | 37.8% | 947 | 798 |
| Maritime services: | |||
| Wilhelmsen Ahrenkiel Ship group | 50 % | 9 | 10 |
| Associates | 20 - 50% | 14 | 12 |
| New Energy: | |||
| Joint venture | |||
| Coast Center Base | 50 % | 104 | 105 |
| Vikan Næringspark Invest AS | 50 % | 0 | 17 |
| Associates | |||
| Edda Wind ASA | 25.7% | 55 | 46 |
| Reach Subsea ASA | 21 % | 17 | |
| Other | 33-49% | 7 | 7 |
| Total investment in joint ventures and associates | 1 154 | 996 | |
| Share of profit from joint ventures and associates | Q1 2022 | Q1 2021 |
|---|---|---|
| Wallenius Wilhelmsen ASA | 61 | 1 |
| Joint ventures and associates in New Energy | 2 | 3 |
| Joint ventures and associates in Maritime Services | 1 | 1 |
| Share of profit/(loss) from joint ventures and associates | 64 | 5 |
Step up gain Vikan Næringspark Invest AS, from associate to subsidiary, result in an accounting gain of USD 17 million. The group was exposed to a fraud with an estimated loss of USD 7 million. The
The effective tax rate for the group will, from period to period, change dependent on the group gains and losses from investments inside the exemption method.
case is subject to criminal procedures in four jurisdictions and total exposure is USD 17 mill. Sale of tangible assets result in a loss of USD 1 million.
| Other tangible | Intangible | ||||
|---|---|---|---|---|---|
| USD mill | Vessels | Properties | assets | assets | Total |
| 2022 - Year to date | |||||
| Cost 1.1 | 35 | 601 | 229 | 193 | 1 058 |
| Acquisition | - | 146 | 5 | 1 | 152 |
| Reclass/disposal | - | (0) | (3) | 1 | (2) |
| Currency translation differences | 0 | 5 | (0) | 1 | 6 |
| Cost 31.03 | 36 | 752 | 230 | 196 | 1 215 |
| Accumulated depreciation and impairment losses 1.1 | (23) | (207) | (93) | (57) | (381) |
| Depreciation/amortisation | (0) | (5) | (3) | (2) | (10) |
| Reclass/disposal | - | (2) | 1 | 0 | (1) |
| Currency translation differences | (0) | (1) | (0) | (0) | (2) |
| Accumulated depreciation and impairment losses 31.03 | (24) | (215) | (95) | (60) | (393) |
| Carrying amounts 31.03 | 12 | 537 | 136 | 137 | 821 |
| USD mill | Vessel | Property | Other tangible assets |
Intangible assets |
Total |
|---|---|---|---|---|---|
| 2021 - Year to date | |||||
| Cost 1.1 | 36 | 596 | 241 | 194 | 1 067 |
| Acquisition | - | 21 | 3 | 1 | 25 |
| Reclass/disposal | - | (7) | (2) | 1 | (9) |
| Currency translation differences | (0) | (4) | (4) | (1) | (9) |
| Cost 31.03 | 36 | 606 | 238 | 194 | 1 075 |
| Accumulated depreciation and impairment losses 1.1 | (23) | (198) | (92) | (52) | (366) |
| Depreciation/amortisation | (0) | (4) | (3) | (2) | (9) |
| Reclass/disposal | - | 2 | 1 | 0 | 3 |
| Impairment | - | - | - | - | - |
| Currency translation differences | 0 | 2 | 1 | 0 | 4 |
| Accumulated depreciation and impairment losses 31.03 | (23) | (199) | (93) | (54) | (369) |
| Carrying amounts 31.03 | 13 | 408 | 145 | 140 | 706 |
| USD mill | Vessels | Properties | Other tangible assets |
Intangible assets |
Total |
|---|---|---|---|---|---|
| 2021 - Full year | |||||
| Cost 1.1 | 36 | 596 | 241 | 194 | 1 067 |
| Acquisition | 1 | 33 | 15 | 3 | 52 |
| Reclass/disposal | - | (4) | (19) | 3 | (19) |
| Currency translation differences | (1) | (24) | (8) | (7) | (41) |
| Cost 31.12 | 35 | 601 | 229 | 193 | 1 058 |
| Accumulated depreciation and impairment losses 1.1 | (23) | (198) | (92) | (52) | (366) |
| Depreciation/amortisation | (1) | (18) | (11) | (7) | (37) |
| Reclass/disposal | - | (0) | 6 | 0 | 6 |
| Impairment | - | - | - | - | - |
| Currency translation differences | 1 | 9 | 4 | 2 | 16 |
| Accumulated depreciation and impairment losses 31.12 | (23) | (207) | (93) | (57) | (381) |
| Carrying amounts 31.12 | 12 | 394 | 136 | 135 | 678 |
The group leases several assets such as property, machinery, equipment and vehicles. The group's right-of-use assets are categorised and presented in the tables below:
| Other tangible | ||||
|---|---|---|---|---|
| 2022 - Year to date | Property | assets | Total | |
| Cost 1.1 | - 199 |
15 | 214 | |
| Additions including remeasurements | - 57 |
1 | 58 | |
| Reclass/disposal including cancellations | - (86) |
(1) | (86) | |
| Cost 31.03 | - 171 |
15 | 186 | |
| Accumulated depreciation and impairment losses 1.1 | - (55) |
(4) | (59) | |
| Depreciation/amortisation | - (6) |
(1) | (7) | |
| Reclass/disposal | - 26 |
0 | 27 | |
| Accumulated depreciation and impairment losses 31.03 | - (35) |
(5) | (40) | |
| Carrying amounts 31.03 | - 136 |
10 | 146 |
| 2021 - Year to date | Other tangible | ||
|---|---|---|---|
| Property | assets | Total | |
| Cost 1.1 | - 201 |
13 | 214 |
| Additions including remeasurements | 7 | 1 | 8 |
| Reclass/disposal including cancellations | - (20) |
(0) | (20) |
| Currency translation differences | - (1) |
(0) | (1) |
| Cost 31.03 | - 187 |
13 | 200 |
| Accumulated depreciation and impairment losses 1.1 | - (34) |
(3) | (37) |
| Depreciation/amortisation | - (7) |
(1) | (8) |
| Accumulated depreciation and impairment losses 31.03 | - (40) |
(4) | (44) |
| Carrying amounts 31.03 | - 147 |
9 | 156 |
| 2021 - Full year | Other tangible | |||
|---|---|---|---|---|
| Property | assets | Total | ||
| Cost 1.1 | - 201 |
13 | 214 | |
| Additions including remeasurements | - 35 |
5 | 41 | |
| Reclass/disposal including cancellations | - (30) |
(3) | (33) | |
| Currency translation differences | - (8) |
(1) | (8) | |
| Cost 31.03 | - 199 |
15 | 214 | |
| Accumulated depreciation and impairment losses 1.1 | - (34) |
(3) | (37) | |
| Depreciation/amortisation | - (28) |
(3) | (30) | |
| Reclass/disposal | - 5 |
2 | 6 | |
| Currency translation differences | - 2 |
0 | 2 | |
| Accumulated depreciation and impairment losses 31.03 | - (55) |
(4) | (59) | |
| Carrying amounts 31.03 | - 145 |
10 | 155 |
| A - shares | 34 000 000 |
|---|---|
| B - shares | 10 580 000 |
| Total shares | 44 580 000 |
Earnings per share taking into consideration the number of outstanding shares in the period.
Basic earnings per share is calculated by dividing profit for the period after noncontrolling interests, by average number of total outstanding shares.
Earnings per share is calculated based on 44 580 000 shares for 2022 and 2021.
| USD mill | 31.03.2022 | 31.03.2021 | 31.12.2021 |
|---|---|---|---|
| Financial assets to fair value | |||
| At 31 December | 688 | 801 | 801 |
| Acquisition | 0 | 1 | 2 |
| Return of capital | - | (2) | (2) |
| Currency translation adjustment through other comprehensive income | 3 | (1) | (6) |
| Change in fair value through income statement | 70 | (9) | (107) |
| Total financial assets to fair value | 761 | 789 | 688 |
Financial assets to fair value are held in subsidiaries with different functional currencies and thereby creating translation adjustment.
| Q1 | Q1 | |
|---|---|---|
| 2022 | 2021 | |
| Investment management | (8) | 10 |
| Other financial income | 15 | 14 |
| Interest expenses | (7) | (8) |
| Net financial currency | 0 | (2) |
| Net financial currencies derivatives | 3 | (6) |
| Other financial income/(expenses) | 4 | 9 |
Dividend for fiscal year 2020 was NOK 5.00 (NOK 3.00 plus extraordinary NOK 2.00) and approved by the annual general meeting on 22 April 2021. The dividend was paid to the shareholders in May 2021. The annual general meeting additionally authorised a second dividend of NOK 3.00 per share and this was paid in December 2021, bringing the total dividend paid in 2021 to NOK 8.00 per share.
The proposed dividend for fiscal year 2021, payable in second quarter 2022, is NOK 4.00 per share and was approved by the annual general meeting on 27 April 2022. The proposed dividend is not accrued in the year-end balance. The dividend will have effect on the retained earning in second quarter 2022.
| USD mill | 31.03.2022 | 31.03.2021 | 31.12.2021 |
|---|---|---|---|
| Non current interest-bearing debt | 302 | 422 | 203 |
| Current interest-bearing debt | 263 | 73 | 270 |
| Non current lease liabilities | 131 | 140 | 139 |
| Current lease liabilities | 29 | 32 | 30 |
| Total interest-bearing debt | 725 | 667 | 642 |
| Cash and cash equivalents | 183 | 285 | 231 |
| Current financial investments | 110 | 122 | 135 |
| Net interest-bearing debt | 431 | 260 | 276 |
Loan agreements entered into by group companies contain financial covenants related to equity ratio, liquidity, current ratio and net interest-bearing debt / EBITDA measured in respect of the relevant borrowing company or group of
companies. The group was in compliance with these covenants at 31 March 2022 (analogous for 31 March 2021).
| Specification of interest-bearing debt | |||
|---|---|---|---|
| USD mill | 31.03.2022 | 31.03.2021 | 31.12.2021 |
| Interest-bearing debt | |||
| Bankloan | 565 | 495 | 473 |
| Lease liabilities | 160 | 171 | 169 |
| Total interest-bearing debt | 725 | 667 | 642 |
| Repayment schedule for interest-bearing debt | |||
| Due in 1 year | 292 | 75 | 300 |
| Due in 2 year | 240 | 216 | 204 |
| Due in 3 year | 21 | 20 | 22 |
| Due in 4 year | 84 | 25 | 26 |
| Due in 5 year and later | 88 | 331 | 90 |
| Total interest-bearing debt | 725 | 667 | 642 |
| USD mill | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| 2022 | ||||
| Financial assets at fair value | ||||
| Equities | 65 | 65 | ||
| Bonds | 44 | 44 | ||
| Financial derivatives | 2 | 2 | ||
| Financial assets at fair value | 736 | 5 | 20 | 761 |
| Total financial assets 31.03 | 845 | 7 | 20 | 873 |
| Financial liabilities at fair value | ||||
| Financial derivatives | (0) | (1) | (1) | |
| Total financial liabilities 31.03 | 0 | (1) | 0 | (1) |
| 2021 | ||||
| Financial assets at fair value | ||||
| Equities | 72 | 72 | ||
| Bonds | 47 | 47 | ||
| Financial derivatives | 3 | 3 | ||
| Financial assets at fair value | 766 | 5 | 18 | 789 |
| Total financial assets 31.03 | 885 | 8 | 18 | 911 |
| Financial liabilities at fair value | ||||
| Financial derivatives | (0) | (7) | (7) | |
| Total financial liabilities 31.03 | (0) | (7) | 0 | (7) |
The fair value of financial instruments traded in an active market is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market (over-the-counter contracts) are based on third party quotes. These quotes use the maximum number of observable market rates for price discovery. Specific valuation techniques used by financial counterparties (banks) to value financial derivatives include:
estimated future cash flows based on observable yield curves - The fair value of interest rate swap option (swaption) contracts is determined using observable volatility, yield curve and time-to-maturity parameters at the balance sheet date, resulting in a swaption premium. Options are typically valued by applying the Black-Scholes model.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to net present value
The fair value of foreign exchange option contracts is determined using observable forward exchange rates, volatility, yield curves and time-to-maturity parameters at the balance sheet date, resulting in an option premium. Options are typically valued by applying the Black-Scholes model.
The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the group for similar financial derivatives.
The fair values, except for bond debt, are based on cash flows discounted using a rate based on market rates including margins and are within level 2 of the fair value hierarchy. The fair values of the bond debt are based on quoted prices and are also classified within level 2 of the fair value hierarchy due to limited trading in an active market.
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
The quoted market price used for financial assets held by the group is the current mid price. These instruments are included in level 1. Instruments included in level 1 at the end of March 2022 are liquid investment grade bonds (analogous for 2021).
The fair value of financial instruments that are not traded in an active market (over-the-counter contracts) are based on third party quotes (Mark-to-Market). These quotes use the maximum number of observable market rates for price discovery. The different techniques typically applied by financial counterparties (banks) were described above. These instruments - FX and IR derivatives - are included in level 2.
If one or more of the significant inputs is not based on observable market data, the derivatives is in level 3. Primarily illiquid investment funds and structured notes are included in level 3.
WWH delivers services to the Wallenius Wilhelmsen group. These include primarily in-house services such as canteen, post, switchboard and rent of office facilities.
Generally, Shared Services are priced using a cost plus 5% margin calculation, in accordance with the principles set out in the OECD Transfer Pricing Guidelines and are delivered according to agreements that are renewed annually.
The size and global activities of the group dictate that companies in the group will be involved from time to time in disputes and legal actions.
The group is not aware of any financial risk associated with disputes and legal actions which are not largely covered through insurance arrangements.
No material events occured between the balance sheet date and the date when the accounts were presented providing new information about the conditions prevailing on the balance sheet date.
In addition Maritime Services have several transactions with associates. The contracts governing such transactions are based on commercial market terms.
Nevertheless, any such disputes/actions which might exist are of such a nature that they will not significantly affect the group's financial position.
This section describes non-GAAP financial alternative performance measures (APM) that may be used in the quarterly and annual reports and related presentations.
The following measures are not defined nor specified in the applicable financial reporting framework of IFRS. They may be considered as non-GAAP financial measures that may include or exclude amounts that are calculated and presented according to the IFRS. These APMs are intended to enhance comparability of the results, balance sheet and cash flows from period to period and it is the Company's experience that these are frequently used by investors, analysts and other parties. Internally, these APMs are used by the management to measure performance on a regular basis. The APMs should not be considered as a substitute for measures of performance in accordance with IFRS.
EBITDA is defined as Total income (Operating revenue and gain/(loss) on sale of assets) adjusted for Operating expenses. EBITDA is used as an additional measure of operational profitability, excluding the impact from financial items, taxes, depreciation and amortization.
EBITDA adjusted is defined as EBITDA excluding certain income and/or cost items which are not regarded as part of the underlying operational performance for the period. The Company do not report EBITDA adjusted on a regular basis, but may use it on a case by case basis to better explain operational performance.
EBITDA margin is defined as EBITDA as a per cent of of Total income.
EBITDA margin adjusted is defined as EBITDA adjusted as a per cent of Total income, with Total income also adjusted for the same income elements as those which have been adjusted for in EBITDA adjusted.
EBIT is defined as Total income (Operating revenue and gain/(loss) on sale of assets) less Operating expenses, Other gain/loss and depreciation and amortization. EBIT is used as a measure of operational profitability excluding the effects of how the operations were financed, taxed and excluding foreign exchange gains & losses.
EBIT adjusted, EBIT margin and EBIT margin adjusted will, if used, be prepared in the same manner as described under EBITDA.
Net interest-bearing debt (NIBD) is defined as total interest bearing debt (Noncurrent interest-bearing debt, Non-current lease liabilities, Current interestbearing debt and Current lease liabilities) less Cash and cash equivalenets and Current financial investments.
Equity ratio is defined as Total equity as a percent of Total assets.
Wilh. Wilhelmsen Holding ASA PO Box 33 NO-1324 Lysaker, NORWAY Tel: +47 67 58 40 00 http://www.wilhelmsen.com/
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