Wilh. Wilhelmsen ASA

Earnings Release • May 8, 2019

Wilh. Wilhelmsen Holding ASA First quarter 2019

May 2019

Highlights First quarter 2019

USD 29 million net profit

Positive contribution from all main activities

Sales gain in supply services

Improved performance in Wallenius Wilhelmsen

Net gain from other financials

	Maritime	Supply	Holding/	Elim /
	services	services	Investm	discont	Group
USD mill
- unless otherwise indicated	Q1'19	Q1'19	Q1'19	Q1'19	Q1'19
income Total	144	54	2	-2	199
- of which operating revenue	143	48	2	-2	192
which gain/(loss) on sale - of of assets	0	6	0	0	7
EBITDA	20	17	-4	0	34
Operating profit/EBIT	14	8	-5	0	17
Share of profits from associates	1	6	8	0	15
Change in fair financial value assets	0	0	-3	0	-3
Other financial income/(expenses)	-6	-5	18	0	8
income/(expenses) Tax	-4	-1	18	0	-6
Profit/(loss) from continued operations	6	8	17	0	31
Discontinued operations	0	0	0	0	0
Profit/(loss) for period the	6	8	17	0	31
Profit/(loss) owners of the to parent	6	6	17	0	29
EPS (USD)					0 63 ,
Other comprehensive income					5
Total comprehensive income					36
comprehensive income owners of Total parent					33
Total assets	908	717	1 698	-47	3 276
Equity parent	243	160	1 451	0	1 853
equity Total	242	216	1 594	0	2 051
Equity ratio	27 %	30 %	94 %	0 %	63 %

Q1'19: Positive contribution from all main activities

USD 29 million net profit for the quarter

Total income down 11% from previous quarter

USD 34 million EBITDA

• Lifted by sales gain and IFRS 16 effect

USD 15 million share of profit from associates

• Wallenius Wilhelmsen and associates in supply services both contributing

USD 5 million net financial gain

• Dividend income offsetting reduction in fair value

IFRS 16 implementation Lifting EBITDA, EBIT and total assets, but reducing net result for the quarter

Reconciliation of Q1'19 reporting before and after implementation of IFRS 16

	Maritime services	Supply services	Holding/ Investm	Elim / discont	Group
USD mill
- unless otherwise indicated	Q1'19	Q1'19	Q1'19	Q1'19	Q1'19
EBITDA - reported	20	17	4 -	0	34
EBITDA - adjusted for IFRS 16	17	13	5 -	0	25
Operating profit/EBIT - reported	14	8	5 -	0	17
Operating profit/EBIT - adj for IFRS 16	13	7	5 -	0	15
Other financial income/(expenses) - reported	6 -	5 -	18	0	8
income/(exp ) IFRS Other financial - adj for 16	5 -	3 -	19	0	11
Profit/(loss) for period the - reported	6	8	17	0	31
Profit/(loss) for period - adj for IFRS 16 the	6	9	17	0	33
Total - reported assets	908	717	1 698	47 -	3 276
- adj for IFRS 16 Total assets	850	597	1 647	36 -	3 056

Stable development for maritime services

Maritime services - total income and adjusted EBITDA margin *)

• Adj EBITDA margin - excluding IFRS 16
• Adj EBITDA margin - IFRS 16 (from Q1'19)

*) Margin adjusted for main non recurring items: Q4'16: Sales gain and transaction/restructuring cost Q1'17-Q2'18: Drew acquisition cost

Stable development in total income

• Stable for ships service
• Ship management income down; lower lay-up activity

Underlying EBITDA down 12% quarter-on-quarter

• Reported EBITDA up 4% due to IFRS 16
• Strong improvement in underlying EBITDA year-over-year

Positive underlying trend in EBITDA margin, adjusting for a traditionally weaker first quarter

Sales gain lifting net result in supply services

Supply services - total income and adjusted EBITDA margin 1)

Income down 34% q-o-q

• Completion of NATO exercise
• Some seasonal slowdown
• USD 6 million sales gain

Reported EBITDA up 33% due to IFRS 16

USD 7 million sales gain in associates

Stable development in adjusted EBITDA margin

Adj. EBITDA margin - IFRS 16 (from Q1'19)

Q1'19: USD 6 million sales gain

USD 17 million net profit for holding and investments

Wallenius Wilhelmsen

• Improved EBITDA following improved cargo mix, lower net bunker cost and new improvement program
• USD 8 million share of net result

Treasure ASA / Hyundai Glovis

• USD 13 million dividend offsetting fair value loss in Hyundai Glovis

Other investments

• USD 10 million gain on Qube and other financial assets
• USD 6 million gain on current financial investments

Positive contribution from all main investments

Solid balance sheet

Wilhelmsen group total assets and equity ratio

Total assets up and equity ratio down due to implementation of IFRS 16

Key figures

Healthy liquidity and debt repayment profile

Maturity profile – outstanding debt (USD million)

• Holding and investments (ex lease) Maritime services (ex. lease) Leasing (IFRS 16)
• Supply services (ex.lease)

1) Cash and cash equivalents and current financial investments

2) Excluding intercompany debt

The board expects a stable development of underlying operating performance, but with normal seasonal variations.

Wilhelmsen's exposure towards global trade, and potential introduction of further tariffs and restrictions, continues to create uncertainties. Wilhelmsen retains its robustness to meet such eventualities.

Supplementary slides – First quarter 2019

Maritime services

Ships service Ship management

Supply services NorSeaGroup

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, marine chemicals, maritime logistics and ships agency Ships service is fully owned by Wilhelmsen

• Stable income, with increased marine product sales outweighing lower agency income when compared with the previous quarter
• Stable EBITDA when adjusting for IFRS 16 accounting effect

Q1'19 highlights

Mill. USD		Q1'19	Q4'18	Q1'18
Total income	Mill. USD	133	131	140

Key figures

Ship management

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

Key figures

• Total income down 6% from previous quarter
• Reduced lay-up management activities
• Lower EBITDA

Q1'19 highlights

Mill. USD		Q1'19	Q4'18	Q1'18
Total income		10	11	10
Vessels served	Vessels	~370	~370	~380
Of which:
- Full technical management	%	~40	~40	~35
- Layup management	%	~5	~5	~8
- Crew management	%	~55	~55	~57

• Income down 32% from previous quarter
• Completion of NATO exercise Trident Juncture, lifting 2H'18 income
• EBITDA up due to sales gain and IFRS 16 implementation
• Sales gain lifting share of profit from associates

Q1'19 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 March 2019)

Sprogø Offshore Wind Farm Photo: NorSea Group

Mill. USD	Q1'19	Q4'18	Q1'18
Total income	54	79	56
- of which sales gain	6	1	0
Share of profit from associates	6	1	1

Key figures

• Underlying flat ocean volumes year-over-year
• Ocean result positively impacted by performance improvement initiatives, lower net bunker cost and project cargo in the Atlantic
• The landbased segment delivered stable performance
• Positive IFRS 16 effect on EBITDA of USD 42 million

Q1'19 highlights Wilhelmsen's investment in Wallenius Wilhelmsen ASA

(market value - mill. USD)

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 March 2019)

Key figures

Mill. USD	Q1'19	Q4'18	Q1'18
Total income 1)	1 018	1 022	968
EBITDA 1)	218	168	125
Net profit 1)	22	45	-30
majority 1) Net profit -	20	43	-30
profit 2) Wilhelmsen share of	8	1	4
Book value of Wilhelmsen investment	855	847	834
Market value of Wilhelmsen investment	560	547	1 134

Photo: Wallenius Wilhelmsen

1) Wallenius Wilhelmsen ASA (100%)

2) Wallenius Wilhelmsen accounts for 2018 restated to include EUKOR put/call split on quarter; Wilhelmsen accounts including net accumulated effect in Q4'18

• Dividend from Hyundai Glovis offsetting fall in fair value
• Treasure ASA declared dividend of NOK 0,30 per share
• AGM in Treasure ASA approved liquidation of 2.2 million own shares, reducing outstanding shares to 217.8 million

Q1'19 highlights Wilhelmsen's investment in Treasure ASA

(market value - mill. USD)

Key figures

2) Treasure ASA investment

3) Increased from 72,7% to 73,5% once liquidation of 2.2 mill. own shares owned by Treasure ASA is formalised

Treasure ASA

Mill. USD		Q1'19	Q4'18	Q1'18
Total income 1)	100%	nil	nil	nil
Change in fair value financial assets 1)	100%	-12	-6	144
Net profit 1)	100%	1	-6	156
value Hyundai Glovis 2) Book/market	100%	510	523	719
Market value of Wilhelmsen investment in Treasure ASA	73.5%3)	222	214	331

¹⁾ Wilhelmsen group accounts (consolidated figures including non-controlling interests)

Treasure ASA holds a 12.04% ownership interest in Hyundai Glovis, and is listed on Oslo Børs Wilhelmsen owns 73.5% of Treasure ASA (as per 31 March 2019)

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 and dividend income from Qube Holdings and other financial assets
• USD 6 million gain from investment management

Key figures

Mill. USD	Q1'19	Q4'18	Q1'18
1) Change in fair value financial assets	9	-7	-23
Investment management 2)	6	-4	-1
Other financial income/(expenses)	-2	2	1
1) Financial assets	110	100	142
Current financial investments 2)	89	88	101
Cash and cash equivalents 3)	18	16	13

Q1'19 highlights Financial assets, investment portfolio and cash (Mill. USD) -1 4 11 204 217

Photo: Qube/Oslo Børs

1) Include Qube Holdings Limited and certain other investments. Income excludes currency and mark-to-market revaluation

2) Investment portfolio in parent company

3) Cash and cash equivalents in parent company and fully owned subsidiaries reported under the holding and investments segment

wilhelmsen.com