Wilh. Wilhelmsen ASA

Earnings Release • Feb 15, 2019

Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2018

Christian Berg, group CFO

February 2018

The year 2018

Operational contribution up – fall in asset values

Developing Ships Service's marine products on a stand alone basis following abandoned Drew deal

Logistics support to NATO exercise Trident Juncture

Entering offshore wind supply market

Developing digital solutions

Hyundai Glovis restructuring proposal – on and off

Wallenius Wilhelmsen – rate pressure and higher bunker prices partly offset by performance improvements

	Maritime services	Supply services	Holding/ Investm	Elim / discont	Group
USD mill
- unless otherwise indicated	Q4'18	Q4'18	Q4'18	Q4'18	Q4'18
income Total	141	82	3	-2	224
- of which operating revenue	143	81	3	-2	225
- of which gain/(loss) on sale of assets	-1	1	0	0	-1
EBITDA	20	13	-3	0	29
Operating profit/EBIT	16	4	-4	0	16
Share of profits from associates	0	1	1	0	3
Change in fair financial value assets	-48	0	-13	0	-61
income/(expenses) Other financial	-12	-3	-1	0	-17
income/(expenses) Tax	17	0	-1	0	18
Profit/(loss) from continued operations	-27	1	-15	0	-41
Discontinued operations	0	0	0	0	0
Profit/(loss) for period the	-27	1	-15	0	-41
Profit/(loss) owners of the to parent	-28	1	-13	0	-40
EPS (USD)					-0 87 ,
Other comprehensive income					-42
comprehensive income Total					-83
comprehensive income owners of Total parent					-78
Total assets	834	671	1 624	-50	3 079
Equity parent	237	152	1 431	0	1 821
Total equity	236	206	1 575	0	2 017
Equity ratio	28 %	31 %	97 %	0 %	65 %

Q4'18: Net profit hit by loss on financial asset

Steady underlying contribution from operational activities

Total income up 5% from third quarter

USD 29 million EBITDA

•Seasonal fall in supply services' offshore activities offsetting positive development for maritime services

USD 3 million share of profit from associates

• Wallenius Wilhelmsen contribution hit by nonoperational cost items

USD 61 million loss on financial assets

• Survitec impairment loss of USD 48 million
• Reduced value for other investments

	Maritime	Supply	Holding/	Elim /
USD mill	services	services	Investm	discont	Group
- unless otherwise indicated	FY18	FY18	FY18	FY18	FY18
income Total	582	285	11	-7	871
- of which operating revenue	580	283	11	-7	867
which gain/(loss) on sale - of of assets	2	3	0	0	4
EBITDA	42	51	-14	0	78
Operating profit/EBIT	26	25	-15	0	36
Share of profits from associates	4	9	23	0	36
Change in fair financial value assets	-61	0	-56	0	-116
Other financial income/(expenses)	-37	-15	10	0	-41
income/(expenses) Tax	13	-4	3	0	12
Profit/(loss) from continued operations	-55	15	-35	0	-74
Discontinued operations	0	0	0	0	0
Profit/(loss) for period the	-55	15	-35	0	-74
Profit/(loss) owners of the to parent	-56	11	-23	0	-69
EPS (USD)					-1 48 ,
Other comprehensive income					-53
Total comprehensive income					-128
comprehensive income owners of Total parent					-119
Total assets	834	671	1 624	-50	3 079
Equity parent	237	152	1 431	0	1 821
equity Total	236	206	1 575	0	2 017
Equity ratio	28 %	31 %	97 %	0 %	65 %

Year 2018: Improved contribution from operating companies

Reduced value of financial assets creating a USD 60 million net loss

Total income up 10% from previous year

• Full year consolidation of NorSea Group

Underlying EBITDA up 85% to USD 105 million

• •Strong contribution from supply service
• Reported EBITDA included USD 27 million cost related to abandoned Drew acquisition

USD 36 million in share of profit from associates

• Mixed results for Wallenius Wilhelmsen

USD 116 million loss on financial assets

• Survitec impairment loss of USD 61 million
• Hyundai Glovis value down USD 53 million

Maritime services

Ships services Marine products

Ships services Agency services

Ship management Ship management

A unique global network, competence, brand, and culture

Survitec (20%) Safety products

Maritime services - total income and adjusted EBITDA margin

*)

0% 5% 10% 15% 20% 25% 150 300 100 0 250 50 Q4 '17 Q3 '18 14% EBITDA margin (adj.) Total income USD mill Q4 '15 Q4 '16 Q4 '18 -6% 0%

Total income - discontinued operation and gain/(loss) on sale of assets

Total income - continued operation

Steady recovery in maritime services' operating margin Adjusted EBITDA margin of 14% for Q4 and 12% YTD

Adj EBITDA margin *) Margin adjusted for main non recurring items: Q4'15: Pension related accounting gain Q4'16: Sales gain and transaction/restructuring cost Q1'17-Q2'18: Drew acquisition cost

Total income in line with third quarter

• Stable income from ships service
• Further increase in ship management fleet and income

EBITDA up 6% q-o-q

Underlying full year EBITDA up 6% to USD 69 million

Supply services

Supply base services Infrastructure Governmental services

A broad service offering built around core infrastructure and competence

Positive first full consolidated year for supply services

Supply services - total income and EBITDA margin 1)

0%

5%

10%

15%

Income up 13% q-o-q

• WilNor Governmental Services and NorSea Group providing services to NATO exercise Trident Juncture 1)

EBITDA down 27% q-o-q

• Seasonal slowdown within offshore
• High income from low margin activities

Full year EBITDA of USD 51 million

Logistics services for NATO exercise partly offsetting seasonal slow down in offshore activities in Q4

Holding and investments

Wallenius Wilhelmsen Treasure ASA

Hyundai Glovis (~12%)

Financial assets Qube Holdings (~3%)

Current financial inv.

USD ~550 million investment USD ~215 million investment USD ~100 million investments USD ~90 million investments

Shipping, logistics and infrastructure

Holding and investments results hit by lower asset values and reduced contribution from Wallenius Wilhelmsen

Wallenius Wilhelmsen net result down from third quarter

• Improved EBITDA, offset by increased finance cost and fair value loss on EUKOR put/call option
• USD 1 million share of net result
• Material accounting impact from new IFRS 16 (from 1 January 2019)

Treasure ASA / Hyundai Glovis

• USD 6 million loss from change in Hyundai Glovis fair value
• Treasure ASA bought 1.45 million own shares from minority shareholders

Other investments

• USD 7 million loss from change in fair value on Qube / other assets
• USD 4 million loss on current financial investments

Digital accelerator for the maritime industry

Full-service autonomous marine shipping

3D-printing company from California

Digital developer company

Shaping the maritime industry

Investing in new technology and solutions to grow the core

Wilhelmsen group total assets and equity ratio

Solid balance sheet Equity ratio of 65%

Key figures

Healthy liquidity and debt repayment profile

Holding and investments Maritime services Supply services

• 1) Cash and cash equivalents and current financial investments
• 2) Excluding intercompany debt

Board proposes first dividend of NOK 2.50 per share

Dividend payments Upstream cash 1) 2)

1) Dividend from WWASA; net contribution from maritime services; dividend, interest and net gain from Treasure ASA, NorSea Group, Qube, other financial assets and financial investment portfolio 2) Yield calculated based on previous year median closing price for WWI and WWIB share

Potential second dividend of up to NOK 2.50 per share

IFRS 16 implementation Total assets up ~7% and annual EBITDA up USD ~40 million

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 – Fourth quarter 2018

Maritime services

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

• Stable income, with seasonal increase in non-marine chemicals compensating for lower marine product sales
• Stable EBITDA

Q4'18 highlights

Mill. USD		Q4'18	Q3'18	Q4'17
Total income 1)	Mill. USD	131	131	139

Key figures

1) Not including share of profit from associates

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 up, following new vessels on management
• Stable EBITDA

Q4'18 highlights

Mill. USD		Q4'18	Q3'18	Q4'18
Total income 1)		11	10	11
Vessels served	Vessels	~370	~370	~390
Of which: - Full technical management	%	~40	~40	~35
- Layup management	%	~5	~5	~10
- Crew management	%	~55	~55	~55

1) Not including share of profit from associates Photo: Wilhelmsen/Pardus Energy

• Income up 13%
• Services provided to NATO exercise Trident Juncture
• Seasonal slowdown with offshore
• EBITDA down

Q4'18 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 2018)

Photo: NorSea Group

Total income and operating margin (weighted) 2)

Mill. USD		Q4'18	Q3'18	Q4'17
Total income 1)	Mill. USD	79	70	52

• 1) Not including share of profit from associates
• 2) Historic pro forma figures based on NorSea Group reporting

Key figures

• Underlying flat volume development
• EBITDA lifted by higher fuel compensation
• More than half of target USD 100 million improvement confirmed
• Wilhelmsen share of profit impacted by net EUKOR out/call option
• 6+6 cent per share dividend proposal to AGM

Q4'18 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 the Oslo Stock Exchange Wilhelmsen owns ~37,8% of Wallenius Wilhelmsen ASA (as per 31 December 2018)

Key figures

Mill. USD	Q4'18	Q3'18 3)	Q4'17
Total income 1)	1 022	1 031	1 030
EBITDA 1)	168	152	177
Net profit 1)	45	20	86
majority 1) Net profit -	43	21	83
Wilhelmsen share of profit	1	12	34
Book value of Wilhelmsen investment	847	848	831
Market value of Wilhelmsen investment	547	683	1 155

1) Wallenius Wilhelmsen ASA (100%)

2) Restated Wallenius Wilhelmsen accounts to include EUKOR put/call; Wilhelmsen accounts including net accumulated effect in Q4'18

• Net loss following fall in Hyundai Glovis share price
• Treasure ASA share price down 10% (in NOK)
• Treasure ASA bought 1,45 million own shares

Q4'18 highlights Wilhelmsen's investment in Treasure ASA

(market value - mill. USD)

Key figures

2) Treasure ASA investment

3) Increased from 72,7% to 73,2% in Q4 2018 if adjusting for 1.45 mill. own shares owned by Treasure ASA

Treasure ASA

Mill. USD		Q4'18	Q3'18	Q4'17
Total income 1)	100%	nil	nil	nil
Change in fair value financial assets 1)	100%	-6	60
Net profit 1)	100%	-6	60	nil
value Hyundai Glovis 2) Book/market	100%	523	528	575
Market value of Wilhelmsen investment in Treasure ASA	72.7%4)	214	251	381

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 the Oslo Stock Exchange Wilhelmsen owns 73.2% of Treasure ASA (as per 31 December 2018)

Photo: 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 holding and investments segment

• USD 7 million loss from Qube and other financial assets
• USD 5 million loss from current financial investments
• Reduced cash from debt repayment and dividend payment

Q4'18 highlights Financial assets, investment portfolio and cash (Mill. USD)

Key figures

Mill. USD	Q4'18	Q3'18	Q4'17
1) Change in fair value financial assets	-7	12
Other financial income	-1	4	1
1) Financial assets	100	110	142
Current financial investments 2)	88	94	101
Cash and cash equivalents 3)	16	46	13

Photo: Qube/Oslo Børs

• 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

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

wilhelmsen.com