Wilh. Wilhelmsen ASA

Earnings Release • Nov 7, 2018

Wilh. Wilhelmsen Holding ASA Third quarter 2018

November 2018

Improved EBITDA - reported and underlying

Associates lifted by Wallenius Wilhelmsen net profit

Highlights Third quarter 2018

Net gain in financial asset value

Second dividend of NOK 2.00 per share

	Maritime services	Supply services	Holding/ Investm	Elim / discont	Group
USD mill
- unless otherwise indicated	Q3'18	Q3'18	Q3'18	Q3'18	Q3'18
income Total	142	71	3	-2	214
- of which operating revenue	141	71	3	-2	213
which gain/(loss) on sale - of of assets	1	0	0	0	1
EBITDA	19	18	-3	0	33
Operating profit/EBIT	15	12	-3	0	24
Share of profits from associates	1	2	12	0	16
Change in fair financial value assets	-10	0	72	0	62
Other financial income/(expenses)	-7	-4	4	0	-6
Tax income/(expenses)	-4	-2	4	0	-6
Profit/(loss) from continued operations	-5	9	86	0	90
Discontinued operations	0	0	0	0	0
Profit/(loss) for period the	-5	9	86	0	90
Profit/(loss) owners of the to parent	-6	7	70	0	71
EPS (USD)					1 53 ,
Other comprehensive income					-2
comprehensive income Total					88
comprehensive income owners of Total parent					68
Total assets	879	693	1 672	-44	3 199
Equity parent	294	163	1 452	0	1 910
Total equity	294	220	1 597	0	2 112
Equity ratio	33 %	32 %	96 %	0 %	66 %

Improved contribution from operating companies

Net result further lifted by profit in associates and net financial asset gain

Total income down 4% from second quarter

Underlying EBITDA up 34%

•Positive development for both maritime services and supply service

Increase in share of profit from associates

• Wallenius Wilhelmsen contribution USD 12 million

Significant gain on financial assets

• Hyundai Glovis value up USD 60 million
• Qube/other financial assets value up USD 12 million
• Survitec impairment loss of USD 10 million

Maritime services - total income and adjusted EBITDA margin *)

Adj EBITDA margin

Further recovery in maritime services' operating margin EBITDA margin of 13%

*) Margin adjusted for main non recurring items: Q3'15: Impairment charge Q4'15: Pension related accounting gain Q4'16: Sales gain and transaction/restructuring cost Q1'17-Q2'18: Drew acquisition cost

Total income down 4% from second quarter

• Reduced income from ships service
• Increase in ship management fleet and income

Adjusted EBITDA up 7%

• Stable development for ships services
• Rebound in ship management (reduced contract ramp up cost)

Improvement for supply services

0%

5% 10% 15% 20% 25% 30% 35% 40%

NorSea Group income up 4% adjusted for sales gains 1)

• Strong supply base activity
• Start-up of new offshore wind contract

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

General high activity level across all main business units

Improved holding and investments results

Increased contribution from Wallenius Wilhelmsen

Wallenius Wilhelmsen net result up from second quarter

• Reduced financial cost offsetting a seasonal reduction in operating result
• USD 12 million share of net result

Hyundai Glovis

• USD 60 million gain from change in fair value

Qube Holdings

• 12 million gain from change in fair value; USD 2 million dividend income

Equity ratio of 66%

Wilhelmsen group total assets and equity ratio

Key figures

Equity and total assets up mainly due to increased financial assets value

	Equity ratio
	100%	Total assets USD 3 199 million (up 2% q-on-q)
	90%	Total equity USD 2 112 million (up 4% q-on-q)
	80%
66%	70%
	60%
	50%
	40%
	30%
	20%
	10%
	0%

Liquidity and debt repayment profile remain healthy

(USD million)

1) Cash and cash equivalents and current financial investments

2) Excluding intercompany debt

Second dividend of NOK 2.00 per share payable 22 November

Dividend payments Upstream cash 1) 2)

Dividend yield (right axis)

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

First dividend of NOK 3.50 per share paid 8 May

Despite a more positive development of underlying operating performance the past two quarters, the board expects a somewhat softer fourth quarter.

A more negative sentiment towards global trade, and potential introduction of further tariffs and restrictions, continue to create uncertainties.

Supplementary slides - Third 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

• Reduced income across all business streams from second quarter
• Stable operating profit supported by improved product mix
• Wilhelmsen and technology partner Ivaldi Group has agreed to further deepen their collaboration with on-demand 3D printing of marine parts, starting with a facility in Singapore.

Q3'18 highlights

Mill. USD		Q3'18	Q2'18	Q3'17
Total income 1)	Mill. USD	131	138	131

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 up, following new vessels on management
• Rebound in operating profit, mainly due to less contract ramp up cost
• First full quarter of operation of new Southampton, UK, office

Q3'18 highlights

Mill. USD		Q3'18	Q2'18	Q3'18
Total income 1)		10	10	11
Vessels served	Vessels	~370	~360	~390
Of which:
- Full technical management	%	~40	~40	~35
- Layup management	%	~5	~10	~10
- Crew management	%	~55	~50	~55

1) Not including share of profit from associates

• Income up 4% adjusted for sales gains
• Strong supply base service activities
• Start-up of a new offshore wind contract
• Services provided to NATO exercise Trident Juncture

Q3'18 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 30 June 2018)

Photo: NorSea Group

Total income and operating margin (weighted) 3)

Mill. USD		Q3'18	Q2'18	Q3'17 2)
Total income 1)	Mill. USD	70	70	65

• 1) Not including share of profit from associates
• 2) Pro forma figures not consolidated in Wilhelmsen accounts
• 3) Pro forma figures based on NorSea Group reporting, not consistent with Wilhelmsen accounting principles

Key figures

• Continued growth in high and heavy volumes
• Some weakening in auto volumes towards end of the quarter
• EBITDA impacted by higher and rising bunker cost
• Improved net profit, supported by reduced net financial expenses

Q3'18 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 30 June 2018)

Key figures

Mill. USD	Q3'18	Q2'17	Q3'17
Total income 1)	1 031	1 044	955
EBITDA 1)	152	156	188
Net profit 1)	30	21	55
majority 1) Net profit -	30	17	51
profit 2) Wilhelmsen share of	12	6	19
value of investment 2) Book	848	839	796
Market value of investment 2)	683	745	979

1) Wallenius Wilhelmsen ASA (100%) Photo: Wilhelmsen

2) Wilhelmsen group accounts/investment

• Result lifted by increase in Hyundai Glovis share price
• Treasure ASA share price down 1%

Q3'18 highlights Wilhelmsen's investment in Treasure ASA

(market value - mill. USD)

Key figures

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

2) Treasure ASA investment

3) Wilhelmsen investment (direct or indirect)

Treasure ASA

Treasure ASA holds a 12.04% ownership interest in Hyundai Glovis, and is listed on the Oslo Stock Exchange Wilhelmsen owns 72.7% of Treasure ASA (as per 30 June 2018)

Photo: Hyundai Glovis

Mill. USD	Q3'18	Q2'18	Q3'17
Total income 1) 100%	nil	nil	nil
Change in fair value financial assets 1) 100%	60	-250
Net profit 1) 100%	60	-250	nil
value Hyundai Glovis 2) Book/market 100%	528	469	584
Book/market value Hyundai Glovis 3) 72.7%	384	341	424
Market value Treasure ASA 3) 72,7%	251	255	307

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 12 million gain from Qube and other financial assets
• USD 2 million dividend income from Qube
• USD 5 million net increase in current financial investments

Q3'18 highlights Financial assets, investment portfolio and cash (Mill. USD)

Key figures

Q3'18	Q2'18	Q3'17
12	15
4	-7	-6
		137
94	91	99
51	49	32
	110	101

Photo: Qube

• 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

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