Wilh. Wilhelmsen ASA

Earnings Release • May 8, 2018

Wilh. Wilhelmsen Holding ASA First quarter 2018

May 2018

Stable underlying EBITDA in operating companies

Reduced contribution from Wallenius Wilhelmsen

Highlights First quarter 2018

Increased Hyundai Glovis value lifting net profit

World's first autonomous shipping company

Massterly

• Agreement signed 3 April
• JV operational from August 2018
• To be based at Lysaker, Norway

Wilhelmsen and Kongsberg establish world's first autonomous shipping company

• Announced 28 March
• General meetings scheduled 29 May
• If completed, will reduce Treasure ASA's ownership in Hyundai Glovis from 12.04% to 4.64%

Proposed restructuring of Hyundai Glovis Purchasing operating assets from Hyundai Mobis

	Maritime	Supply	Holding/	Elim /
	services	services	Investm	discont	Group
USD mill
- unless otherwise indicated	Q1'18	Q1'18	Q1'18	Q1'18	Q1'18
Total income	151	59	3	-2	211
- of which operating revenue	150	59	3	-2	210
- of which gain/(loss) on sale of assets	1	0	0	0	1
EBITDA	13	6	-4	0	15
Operating profit/EBIT	9	1	-4	0	5
Share of profits from associates	1	1	4	0	6
Change in fair value financial assets	3	0	121	0	124
income/(expenses) Other financial	1	-4	14	0	11
income/(expenses) Tax	-3	-1	14	0	-5
Profit/(loss) from continued operations	11	-3	134	0	142
Discontinued operations	0	0	0	0	0
Profit/(loss) for period the	11	-3	134	0	142
Profit/(loss) owners of the to parent	11	-2	92	0	101
(USD) EPS					2 18 ,
Other comprehensive income					31
comprehensive income Total					174
comprehensive income owners of Total parent					130
Total assets	965	694	1 881	-61	3 478
Equity parent	355	159	1 592	0	2 105
equity Total	354	216	1 791	0	2 361
Equity ratio	37 %	31 %	95 %	0 %	68 %

Increased financial assets value lifting net profit

Low contribution from operating entities

Stable development for maritime services

•EBITDA lifted by reduced corporate cost

Seasonal slowdown for supply service

• Net loss for the quarter

Weak contribution from associates

•Wallenius Wilhelmsen hit by seasonality and reduced Hyundai Motor Group volumes

Value appreciation of Hyundai Glovis shares

Stable development for maritime services

Maritime services - total income and adjusted EBIT margin

*)

Total income - continued operation

• EBIT margin - including corporate cost
• EBIT margin - operating entities (2017/18)

*) Margin adjusted for main extraordinary items: Q3'15: Impairment charge Q4'15: Pension related accounting gain Q4'16: Sales gain and transaction/restructuring cost

Stable total income

Reduced contribution from operating entities

Corporate cost down; partly covered by YE'17 accruals

Reported EBITDA lifted by reduced corporate cost

Financial gain lifting holding and investments result

Reduced contribution from Wallenius Wilhelmsen

• Reduced market share Hyundai Motor Group, partly offset by increased H&H and improved cargo mix
• Result impacted by rate reductions, increased bunker prices and unfavourable currency movement

Significant financial gain from Hyundai Glovis investment

• Proposed Hyundai Mobis/Glovis restructuring lifting Hyundai Glovis and Treasure ASA share price

Reduced value of other investments

Equity ratio of 68%

Wilhelmsen group total assets and equity ratio

Key figures

Equity and total assets lifted by increase in financial assets value

Equity ratio
	100%	Total assets USD 3 478 million (up 6%)
	90%	Total equity USD 2 361 million (up 8%)
	80%
68%	70%
	60%
	50%
	40%
	30%
	20%
	10%
Q1'18	0%

Liquidity and debt position remains strong

Maturity profile – outstanding debt

1) Cash and cash equivalents and current financial investments

Main debt facilities >4 year to maturity

First dividend of NOK 3.50 per share

Dividend yield (right axis)

1) Dividend from WWASA; net contribution from maritime services; dividend, interest and net gain from Treasure ASA, NorSea Group, Qube, WWH portfolio and other investments 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

Focus on operational excellence, improved cash flow and financial robustness will continue

Markets remain challenging, but the underlying sentiments

for the group's businesses are positive.

Supplementary slides - First 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

• Total income up 1% q-on-q; increased sales for marine products
• Reduced operating profit; purchasing cost and product mix
• Regulatory approval process is ongoing related to acquisition of Drew Marine Technical Solutions; complaint filed by US federal trade commission

Photo: Wilhelmsen

Q1'18 highlights

Mill. USD		Q1'18	Q4'17	Q1'17
Total income 1)	Mill. USD	140	139	129

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

Photo: Wilhelmsen

• Income and operating profit down; reduced fleet
• Started relocating global head office from Kuala Lumpur to Singapore
• Secured 5-year frame agreement within offshore wind (jointly with NSG Wind)

Q1'18 highlights

	Q1'18	Q4'17	Q1'17
	10	11	11
Vessels	~380	~390	~400
%	~35	~35	~34
% %	~10 ~55	~10 ~55	~12 ~54

1) Not including share of profit from associates

• Income lifted by increased vessel chartering (pass-through basis)
• Traditional weak season for Norwegian offshore supply bases
• Three new offshore wind contracts signed
• Wilhelmsen increased ownership to ~74,6% (from ~74,1%)

Q1'18 highlights

NorSea Group

NorSea Group provides supply bases and integrated logistics solution to the offshore industry Wilhelmsen owns ~74,6% of NorSea Group (as per 31 March 2018)

Photo: NorSea Group

Total income and operating margin (weighted) 3)

Mill. USD		Q1'18	Q4'17	Q1'17 2)
Total income 1)	Mill. USD	56	52	48

• 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

• Seasonally weak results; negative rate, bunker and currency effect
• Continued improvement in high & heavy volumes
• Reduction in Hyundai Motor Group ocean volumes
• New corporate visual identity and name; Wallenius Wilhelmsen ASA

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 March 2018)

Key figures

Mill. USD	Q1'18	Q4'17	Q1'17 1)
Total income 2)	968	1 036	917
EBITDA 2)	125	177	148
Net profit 2)	10	86	17
majority 2) Net profit -	10	83
profit 3) Wilhelmsen share of	4	34
value of investment 3) Book	834	831
Market value of investment 3)	1134	1 155

Photo: Wilhelmsen

1) Proforma figures

2) Wallenius Wilhelmsen ASA (100%)

3) Wilhelmsen group accounts/investment

• Proposed restructuring of Hyundai Motor Group, including Hyundai Glovis
• Net USD 11 million dividend from Hyundai Glovis
• Increased Hyundai Glovis and Treasure ASA share price

Q1'18 highlights Wilhelmsen's investment in Treasure ASA

(market value - mill. USD)

Key figures

• 2) Treasure ASA investment
• 3) Wilhelmsen investment (direct or indirect)

Treasure ASA

Mill. USD		Q1'18	Q4'17	Q1'17
Total income 1)	100%	nil	nil	nil
Net profit 1)	100%	154	nil	nil
Other comprehensive income 1)	100%	nil	(8)
2) Book/market value Hyundai Glovis	100%	719	575	594
3) Book/market value Hyundai Glovis	72.7%	523	418	432
Market value Treasure ASA 3)	72,7%	331	281	295

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 72.7% of Treasure ASA (as per 31 March 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

• Reduced value of financial assets and investment portfolio

Q1'18 highlights Financial assets, investment portfolio and cash (Mill. USD)

Key figures

Mill. USD	Q1'18	Q4'17	Q1'17
1) Income financial assets	1	nil	1
Income investment management 2)	nil	nil	1
1) Financial assets	120	141	147
Current financial investments 2)	99	101	87
Cash and cash equivalents 3)	16	13	25

Photo: Patrick Stevedors (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

wilhelmsen.com