Wilh. Wilhelmsen ASA

Earnings Release • Feb 16, 2021

Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2020

February 2021

Summary of 2020 – Strong recovery after challenging start

Summary of 2020 – Strong year despite Covid-19

Generally, the pandemic impacted our businesses negatively first half, but recovered somewhat second half

High volatility in underlying volumes and share price in Wallenius Wilhelmsen

Ships service revenue down due to lower activities, mainly cruise markets

Hyundai Glovis with strong value recovery

NorSea – O&G remains strong, energy transition opportunities and diversification

Realising values – sold 1% of Hyundai Glovis

Renewable investment - acquired 25% of Edda Wind

Ship management achieved significant fleet growth from 50% Ahrenkiel acquisition

ESG continued focus in 2020

Milestones – partnerships – future possibilities

Source: Rivieramm.com, ship-tecnnology.com, Norwegian media (DN, FA, e24, Stavanger Aftenblad), Maritime Cleantech, www.hellenicshippingnews.com,

Transaction completed

Wilhelmsen Ahrenkiel Ship Management is a technical ship manager for container vessels based in Hamburg, Germany, and in Rhoon, the Netherlands.

Edda Wind 25% transaction completed

Major step within offshore wind

Outlook

Maritime services:

• Gradual increase in general activity level
• Cruise remains below pre-pandemic levels first half 2021

Supply services:

• Seasonality will continue to impact offshore activities

Holding and investments:

• Car/roro supply-demand balance expected to improve
• Volatile financial markets

The spread of Covid-19 and the measures undertaken to contain it will continue to impact global economic activity. The extent of the future impact on operating income and result and on asset prices remains uncertain. Wilhelmsen retains its robustness and capacity to meet this uncertainty.

Wilh. Wilhelmsen Holding ASA group – Q4 2020 Reduced EBITDA, further increase in financial asset values

	Q-on-Q		Y-o-Y
	Change	Q4'19	Change

USD mill			Q-on-Q		Y-o-Y
- unless otherwise indicated	Q4'20	Q3'20	Change	Q4'19	Change
Total income	202	198	2 %	224	-10 %
- of which operating revenue	199	199	0 %	225	-11 %
- of which gain/(loss) on sale of assets	2	(1)		(1)
EBITDA	29	37	-23 %	31	-9 %
Operating profit/EBIT	9	21	-57 %	12	-28 %
Share of profit from associates	29	3		12
Change in fair value financial assets	215	164		(25)
Other financial income/(expenses)	23	10		3
Profit before tax/EBT	275	198	39 %	2	>500%
Tax income/(expenses)	(23)	(4)		(9)
Profit/(loss) for the period	253	193	31 %	(6)	neg.
Profit to equity holders of the company	198	146	36 %	2	>500%
EPS (USD)	4,45	3,27	36 %	0,05	>500%
Other comprehensive income	78	17		33
Total comprehensive income	330	211	57 %	26	>500%
Total comp. inc. equity holders of the company	273	163	67 %	33	>500%

Wilh. Wilhelmsen Holding ASA group – Full year 2020 EBITDA down, net loss associates, strong increase financial assets

01.01-	01.01-	Y-o-Y
	31.12.19	Change

USD mill	01.01-	01.01-	Y-o-Y
- unless otherwise indicated	31.12.20	31.12.19	Change
Total income	812	850	-5 %
- of which operating revenue	807	836	-4 %
- of which gain on sale of assets	5	14	-64 %
EBITDA	138	149	-7 %
Operating profit/EBIT	60	78	-23 %
Share of profit/(loss) from associates	(50)	49
Change in fair value financial assets	192	34
Other financial income/(expenses)	2	(17)
Profit before tax/EBT	205	144	42 %
Tax income/(expenses)	(27)	(15)
Profit/(loss) for the period	178	130	37 %
Profit to equity holders of the company	117	114	3 %
EPS (USD)	2,63	2,46	7 %
Other comprehensive income	23	(3)
Total comprehensive income	200	127	58 %
Total comp. inc. equity holders of the company	141	111	27 %

Maritime services

USD 137 million total income

• Down 9% y-o-y.
• Sale of marine products and revenue from agency services continued the gradual recovery from the second quarter lows but remained well below pre-pandemic levels mainly due to low cruise activities.
• Ship management income up, mainly from offshore wind.

USD 18 million EBITDA

• Down 19% y-o-y.
• EBITDA margin of 13%.

Acquisition of 50% in Ahrenkiel completed

• Rebranded Wilhelmsen Ahrenkiel Ship Management.
• Currently manage a fleet of 72 container ships.

Gradual recovery in income; dip in operating margin

USD 64 million total income

• Down 10% y-o-y
• Stable supply base activities adjusted for seasonality
• Reduced other activities, partly provided on pass-through basis

Supply services Continued high activity level

USD 13 million EBITDA

• Up 7% y-o-y.
• EBITDA margin of 20%.

USD 5 million share of profit from associates

• Including a sales gain

Declared option to acquire 66% of Olavsvern Group AS

• Transaction completed in February 2021

Holding and investments

Direct investments – Value adjusted

(WAWI and TRE based on share price, other financial investments based on account value)

Further recovery in financial asset values from first quarter low

USD 24 million profit from associates

• Solid development in Wallenius Wilhelmsen's ocean volumes and for landbased, offset by reduced ocean margin.

USD 215 million gain on change in fair value financial assets

• Hyundai Glovis value up USD 205 million.
• Hyundai Glovis ownership reduced from 12.0% to 11.0%, with net proceeds of USD 63 million.

USD 9 million other financial income

• Investment portfolio gain.

Acquisition of 25% in Edda Wind

• Transaction completed in October.

Wilh. Wilhelmsen Holding ASA group Steady cash flow from operating activities

Wilhelmsen group total assets and equity ratio

Wilh. Wilhelmsen Holding ASA group Balance sheet remains solid and with long-term debt maturity profile

Debt maturity profile

Board proposes first dividend of NOK 5.00 per share

Dividend payments 1)

Cash to shareholders

Including NOK 2.00 in extraordinary dividend due to reduced dividend in 2020 Potential second dividend of up to NOK 3.00 per share

2) 2021 payments based on FX USD/NOK of 8.60

Supplementary slides – Fourth quarter 2020

Maritime services

Shipsservice Ship management

Supply services NorSea Group

Holding and investments WalleniusWilhelmsen ASA Treasure ASA Financial investments

Ships service

Wilhelmsen Ships Service is a global provider of standardised product brands and service solutions to the maritime industry, focusing on marine products, maritime logistics and ships agency. Ships service is fully owned by Wilhelmsen.

• Total income was USD 120 million, down 12% from the corresponding period previous year but up 5% from the third quarter. Sale of marine products and revenue from agency services continued the gradual recovery from the second quarter lows but remained well below pre-pandemic levels mainly due to low cruise activities. Non-marine income was down for the quarter.
• EBITDA was down both when compared with the previous year and compared with the third quarter, partly due to a write down of inventories.

Q4'20 highlights

Wilhelmsen Marine Products

Ship management

Wilhelmsen Ship Management provides full technical management, crewing and related services for all major vessel types, and includes 50% of NorSea Wind. Ship management is fully owned by Wilhelmsen.

• Total income was USD 16 million, up 13% from the corresponding period last year and up 8% from the third quarter. The increase was mainly due to further growth in offshore wind activities.
• EBITDA was in line with previous year and the third quarter.
• Acquisition of a 50% stake in Ahrenkiel completed in October. The company, which is renamed Wilhelmsen Ahrenkiel Ship Management, currently manages a fleet of 72 container ships.

Q4'20 highlights

Photo: Wilhelmsen Ahrenkiel Ship Management

• Total income was USD 63 million, down 10% from one year earlier and down 4% from the third quarter. Supply base activities were stable when adjusted for the normal seasonal slowdown towards the end of the year. For other activities, partly provided on a passthrough basis, income was down.
• EBITDA was up from the previous year but down from the third quarter partly due to increased bad debt accruals.

Q4'20 highlights

NorSea Group

NorSea Group provides supply bases and integrated logistics solution to the offshore industry. Wilhelmsen owns ~75,2% of NorSea Group (as per 31 December 2020).

Mongstad Industrial Park has been selected as the location for what could become Norway's first production plant for liquid hydrogen serving the maritime market. Photo: Øyvind Hagen, Equinor Mongstad.

Photo: Wallenius Wilhelmsen

Q4'20 highlights

Wallenius Wilhelmsen ASA

Wallenius Wilhelmsen ASA is a global provider of shipping and logistics services towards car and ro-ro customers and is listed on Oslo Børs. Wilhelmsen owns ~37,8% of Wallenius Wilhelmsen ASA (as per 31 December 2020).

• In December, Treasure ASA sold 1.04% of its shares in Hyundai Glovis, reducing ownership from 12.04% to 11.0%. Net proceeds from the sale were USD 63 million.
• USD 205 million gain from change in fair value of Hyundai Glovis.
• Market value of investment in Hyundai Glovis was USD 699 million at end of fourth quarter.

Q4'20 highlights

Treasure ASA

Treasure ASA holds a 11.0% ownership interest in Hyundai Glovis and is listed on Oslo Børs. Wilhelmsen owns ~73.5% of Treasure ASA (as per 31 December 2020, not adjusted for shares held by the company).

Photo: Hyundai Glovis

Market value of Wilhelmsen's investment in Treasure ASA

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 holding and investments segment.

• USD 10 million in fair value gain from financial assets. *)
• USD 9 million gain from investment management. **)
• The market value non-current financial assets at the end of the fourth quarter was USD 103 million. ***)
• The market value of the current financial investment portfolio was USD 124 million by the end of the fourth quarter.

Q4'20 highlights

17 103 0 100 200 300 Q4'19 USD mill 216 226 124 203 Q4'17 Q4'18 Q3'20 Q4'20 256 ^{235 241} 251 219 248 244 159 215 243 -1 +27 Non-current financial investments Current financial investments Cash Financial assets, investment portfolio, and cash (Holding and investment segment excluding Treasure ASA / Hyundai Glovis)

*) Excluding currency gain/(loss) reported under comprehensive income, and gain/(loss) from Hyundai Glovis reported under Treasure ASA **) Excluding currency gain/(loss)

***) Excluding Hyundai Glovis

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