Wilh. Wilhelmsen ASA

Earnings Release • Feb 15, 2018

Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2017

Thomas Wilhelmsen, group CEO Christian Berg, group CFO

February 2018

Shaping the maritime industry

Outlook

Financials and business performance

• Fourth quarter
• Year 2017

Shaping the maritime industry

Building profitable and sustainable operations

Active ownership

More agile and innovative organisation

Financial performance

Creating a global logistics market leader

A unique platform Expanding the core The future car market Creating value

The Wallenius Wilhelmsen Logistics ASA merger completed 4 April 2017

Building on the maritime services platform

Marine products Agency services Ship management

A unique network, competence, brand, and culture

Supply services – a new business segment

Becoming majority owner Joint group service offering Joint group service offering

Building on strength of the total group

NorSea Group ownership from 40% to ~74% NorSea Group & Wilhelmsen Ship Management NorSea Group & WilNor Governmental Services

Creating long term value through active ownership

NorSea Group Treasure ASA Survitec Qube

USD 150 million investment USD 281 million investment USD 83 million investment USD 132 million investment

All figures are as per 31 December 2017; market value for listed investments, book value for non listed entities Photos: Source NorSea Group; Hyundai Glovis; Survitec; Qube

Shipping, maritime services, logistics and infrastructure

The group has successfully completed several structural changes creating value for shareholders.

Markets are challenging, but Wilhelmsen continues to hold leading positions in main business segments.

The group is positioned for future growth, and the board expects to see positive developments in main markets.

Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2017

Financials and business performance

February 2018

	Maritime services	Supply services	Holding/ Investm.	Elim./ discont.	Group
USD mill
- unless otherwise indicated	Q4'17	Q4'17	Q4'17	Q4'17	Q4'17
Total income	150	5 7	1	-3	205
- of which operating revenue	149	5 7	0	-3	204
- of which gain/(loss) on sale of assets	1	0	0	0	1
EBITDA	1 0	9	-5	0	1 4
Operating profit/EBIT	6	2	-5	0	4
Share of profits from associates	1	1	3 4	0	3 7
Net financial income/(expenses)	1	-1	1	0	1
Tax income/(expenses)	-6	1	1	0	-4
Profit/(loss) from continued operations	2	4	3 2	0	3 7
Discontinued operations	0	0	0	0	0
Profit/(loss) for the period	2	4	3 2	0	3 7
Profit/(loss) to owners of the parent	1	3	3 2	0	3 6
EPS (USD)					0,78
Other comprehensive income					-22
Total comprehensive income					1 7
Total comprehensive income owners of parent					1 6

Q4'17: "Back to normal"

Improvement in key markets

Income up for maritime services

•Additional cost impacting EBITDA and net result

Seasonal slowdown for supply service

•Positive net result for the quarter

Strong contribution from associates

•WWL net result lifted by income growth and tax gain

	Maritime services	Supply services	Holding/ Investm.	Elim./ discont.	Group
USD mill
- unless otherwise indicated	FY17	FY17	FY17	FY17	FY17
Total income	580	5 7	171	-14	793
- of which operating revenue	574	5 7	1 6	-14	632
- of which gain/(loss) on sale of assets	6	0	155	0	161
EBITDA	5 1	9	138	0	198
Operating profit/EBIT	3 6	2	138	0	176
Share of profits from associates	4	1	4 9	0	5 5
Net financial income/(expenses)	6	-1	1 6	0	2 2
Tax income/(expenses)	-15	1	-2	0	-16
Profit/(loss) from continued operations	3 0	4	202	0	236
Discontinued operations	0	0	0	-239	-239
Profit/(loss) for the period	3 0	4	202	-239	-2
Profit/(loss) to owners of the parent	2 9	3	150	-246	-64
EPS (USD)					-1,38
Other comprehensive income					7 7
Total comprehensive income					7 5
Total comprehensive income owners of parent					1 1

Year 2017: Non-recurring accounting effect of M&A activities Operating profits reflects low end of business cycle

Modest recovery in maritime services income when adjusting for 2016 sale of activities

Income lifted by new supply services segment

Share of profit from associates mainly reflecting WWL net result

Material non-recurring items

• •Glovis reclassification gain
• NorSea Group acquisition loss
• •WWASA discontinued operation (WWL merger)

Income and underlying operating result up for maritime services

*)

EBIT margin - operating entities (2017)

Total income up 5% q-on-q, partly seasonal

Improved contribution from ships service

Stable development for ship management

M&A cost and tax impacting net result

Improved contribution from holding and investments activities Market value lifted by Wallenius Wilhelmsen Logistics

Positive development for WWL ASA ^{1 522}

• Strong volume development, partly seasonal
• Increased operating cost; tax gain
• Share price up

Treasure ASA value down

• Fall in Glovis share price; increased discount

Increased value of other investments

Equity ratio of 67%

Wilhelmsen group total assets and equity ratio

100%	Q2'17: Wallenius Wilhelmsen Logistics ASA merger
90%	• WWASA total assets: USD 2 946 million (31.3)
80%	• WWL net assets: USD 777 million (30.6)
70%
60%
50%	Q3'17: Increased ownership in NorSea Group
40%	• NorSea Group net assets: USD 93 million (30.6)
30%	1) • NorSea Group total assets: USD 685 million (30.9)
20%
10%
0%

Main transactions

Stable development in Q4; year 2017 impacted by accounting effect of ownership transactions

Liquidity and debt position remains strong

(USD million)

425

1) Cash and cash equivalents and current financial investments

Main debt facilities >4 year to maturity

Board propose first dividend of NOK 3.50 per share

Dividend payments Upstream cash 1) 2) 1 2 3 4 5 6 7 8 9 10,00 10 2012 2013 2014 2015 2016 2017 2018 Yield (%) 1st payment 2nd payment 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

Thomas Wilhelmsen, group CEO Christian Berg, group CFO

Supplementary slides

Maritime services

Ships service Ship management

Supply services

NorSea Group (reported under supply services from 26 October 2017)

Holding and investments

WalleniusWilhelmsen Logistics 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 5% q-on-q, partly seasonal
• Increased sales for marine and non-marine products
• Improved operating profit; margin remained below historic average
• Regulatory approval process ongoing related to acquisition of Drew Marine Technical Solutions

Photo: Wilhelmsen

Q4'17 highlights

Mill. USD		Q4'17	Q3'17	Q4'16
Total income 1)	Mill. USD	139	132	158

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

• Stable total income and operating profit
• Low level of new vessel deliveries

Post quarter event

• Global head quarter to be relocated from Kuala Lumpur to Singapore within Q1'18

Q4'17 highlights

Mill. USD		Q4'17	Q3'17	Q4'16
Total income 1)		11	11	12
Vessels served	Vessels	~390	~390	~400
Of which: - Full technical management	%	~35	~35	~33
- Layup management	%	~10	~10	~15
- Crew management	%	~55	~55	~50

1) Not including share of profit from associates

• Seasonal slowdown at Norwegian offshore supply bases
• Continued weak performance at supply bases outside Norway
• Wilhelmsen increased ownership to ~74,2%
• Agreement on onshore power supply and Polarbase ro-ro facility

Q4'17 highlights

NorSea Group

NorSea Group provides supply bases and integrated logistics solution to the offshore industry Wilhelmsen owns ~74,2% of NorSea Group (as per 31 December 2017)

Photo: Polarbase, NorSea Group

Total income and operating margin (weighted) 3)

Mill. USD		Q4'17	Q3'17 2)	Q4'16 2)
Total income 1)	Mill. USD	52	65	54

• 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

• Positive development in ocean volumes and total income
• Higher bunker prices and space charter reducing EBITDA
• Acquisition of Keen Transport Inc.
• Synergy target increased to USD 120 mill.; USD 75 mill. confirmed
• Anti-trust provision increased to USD 440 million

Q4'17 highlights Wilhelmsen's investment – market value (Mill. USD)

Wallenius Wilhelmsen Logistics ASA

Wallenius Wilhelmsen Logistics 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 Logistics ASA (as per 31 December 2017)

Key figures

Mill. USD	Q4'17	Q3'17	Q4'16 1)
Total income 2)	1036	962	917
EBITDA 2)	177	188	148
Net profit 2)	86	55	17
majority 2) Net profit -	83	51
profit 3) Wilhelmsen share of	34	19
value of investment 3) Book	831	796
Market value of investment 3)	1 155	979

Photo: Wallenius Wlhlelmsen Logistics

1) Proforma figures

2) Wallenius Wilhelmsen Logistics ASA (100%)

3) Wilhelmsen group accounts/investment

• Reduction in Treasure ASA market value
• Fall in Hyundai Glovis share price; stronger KRW
• Increased discount in Treasure ASA share

Q4'17 highlights Wilhelmsen's investment – 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 31 December 2017)

Photo: Hyundai Glovis

	Q4'17	Q3'17	Q4'16
100%	nil	nil	23
100%			23
100%	nil	nil	23
100%	(8)	(36)
100%	575	584	580
72.7%	418	424	422
72,7%	281	307	310

Financial investments

Financial investments include cash and cash equivalents, current financial investments and available-for-sale financial assets held by the parent and fully owned subsidiaries reported under the holding and investments segment

• Increased value of available-for-sale financial assets and investment portfolio

Q4'17 highlights Available-for-sale financial assets (Mill. USD)

Key figures

Mill. USD	Q4'17	Q3'17	Q4'16
1) Income available-for-sale financial assets	nil	1	nil
Income investment management 2)	nil	3	4
1) Available-for-sale financial assets	141	137	129
Current financial investments 2)	101	99	83
Cash and cash equivalents 3)	13	32	37

Photo: Port Hedland, Qube Holdings

• 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