Wilh. Wilhelmsen ASA

Earnings Release • Nov 8, 2017

Wilh. Wilhelmsen Holding ASA Third quarter 2017

Thomas Wilhelmsen, group CEO

November 2017

Strategic review

Increased ownership in NorSea Group to ~72% (from ~40%)

Mixed operating results

Highlights Third quarter 2017

Currency effect lifting value of investments

Long term financing of maritime services

Declared second dividend of NOK 1.50 per share

Reduced operating profit for maritime services

Maritime services - total income and adjusted EBIT margin *)

Reduced contribution from ships service

• Total income down 2% q-on-q, partly seasonal
• EBIT down; margin pressure, seasonality and currency

Stable development for ship management

Continued challenging markets

Reduced M&A cost, but still impacting results

Improved contribution from holding and investments activities Positive currency effect on market value of investments

Positive development for Wallenius Wilhelmsen Logistics ASA

• Improved ocean cargo mix; seasonally lower volumes
• More than half targeted synergies confirmed

Second dividend from Treasure ASA - USD 13 million received

Improved operating performance in NorSea Group

• But continued weak performance outside Norway

Wilhelmsen group total assets and equity ratio

Equity ratio of 66% Group balance impacted by consolidation of NorSea Group

	Full consolidation of NorSea Group from 26 September 1) Total assets of USD 685 million
100% 90% 80%	1) Total equity of USD 208 million • Wilhelmsen majority share USD 152 million
70%	1) Net interest bearing debt of USD 376 million
60% 50%	Previously reported as associated company
40%	Net USD 17 million accounting loss from reclassification from
30%	associate to subsidiary
20%	• USD 40 million sales loss, reported under total income
10%	• USD 23 million reversal of currency effect in sales loss, reported under comprehensive income
0 %

Liquidity and debt position remains strong New USD 640 million - 5 year credit facility in Maritime Services

(USD million)

477

Holding and investments Maritime services Supply services

The group is positioned in challenging markets and have successfully completed several important structural changes creating shareholder value. Structural changes and performance improvement will continue to support an improvement in operating margin of main activities.

However, the board expects the general business environment to remain soft, affecting most group activities and performance.

Key figures

NorSea Group ownership increased to ~72% USD ~70 million transaction completed 26 September

Jan Eyvin Wang, senior vice president industrial investments in Wilhelmsen and new chair of NorSea Group, John Stangeland, CEO of NorSea Group, and Thomas Wilhelmsen, group CEO of Wilhelmsen

Photo: Wilhelmsen

• Gradual increase in ownership
• July 2012: ~35.4%
• April 2014: ~40%
• September 2017: ~72%
• Potential further increase of up to ~74%
• Offer put forward to acquire part of management shares
• Eidesvik Eiendomsinvest AS and Simon Møkster Eiendom AS to retain shareholding of ~12% each
• New shareholder agreement
• Total Wilhelmsen investment of USD 171 million
• Of which equity: USD 152 million

• Of which shareholder loan: USD 19 million

Investment rationale

• Exposure towards energy and offshore market
• Logistics infrastructure

NorSea Group John Stangeland, NorSea Group CEO

NorSea Group

The leading provider of supply bases and integrated logistics solutions to the offshore industry

Infrastructure and facilities

Greenfield development

Property management

Total base area	Sqm	4 174 000
Outdoor storage	Sqm	2 204 000
Warehouses	Sqm	346 080
Workshops	Sqm	67 900
Offices	Sqm	133 260
Quays	Number	68
Quays	Meter	5 962

1) Stavanger, Stord, Bergen, Kristiansund, Sandnessjøen, Harstad, Hammerfest, Kirkenes and Esbjerg (as per august 2017)

Supply bases Norway and Denmark 1)

Offshore wind

• Assembly of structures
• Logistics support
• Maintenance of structures
• Hywind – the worlds first floating offshore wind farm

Offshore wind – cumulative installed capacity (GW)

Source: GWEC – Global Wind 2016 Report, Wind Europe – «Wind in power: 2016 European statistics», SB1M

Results reflecting general market and property sales gains

NorSea Group financials

~80% of assets are property or associates

0 1 000 2 000 3 000 4 000 5 000 6 000 6% 51% 11% Assets 26% 55% 3% 16% 1% Mill. NOK Equity and liabilities 32% Goodwill/intangible IBD Subordinated debt Property Equity Associates Other liabilities Other assets Cash

Balance sheet 30.9.17 2)

Income statement 1.1.12 - 30.9.17 1)

Q&A

Thomas Wilhelmsen, group CEO Christian Berg, group CFO John Stangeland, NorSea Group CEO

Supplementary slides

Maritime services

Ships service Ship management

Holding and investments

WalleniusWilhelmsen Logistics ASA Treasure ASA NorSea Group (reported under supply services from 26 October 2017) 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 a wholly owned Wilhelmsen subsidiary

Photo: Wilhelmsen

• Total income down 2% q-on-q, partly seasonal
• EBIT down; margin pressure, seasonality and currency
• Regulatory approval process ongoing related to acquisition of Drew Marine Technical Solutions

Q3'17 highlights

Mill. USD		Q3'17	Q2'17	Q3'16
Total income 1)	Mill. USD	132	134	149

Key figures

Ship management

Wilhelmsen Ship Management provides full technical management, crewing and related services for all major vessel types with exception of oil tankers Ship management is a wholly owned Wilhelmsen subsidiary

Key figures

Photo: Wilhelmsen

• Stable total income and operating profit
• Continued challenging market

Q3'17 highlights

Total income and vessels served

	Q3'17	Q2'17	Q3'16
	11	11	11
			~400
%	~35	~35	~34
%	~55	~55	~52
%	~10	~10	~14
	Vessels	~390	~390

• Strong underlying results
• Ocean lifted by improved cargo mix; seasonally lower volumes
• Continued positive development for land based
• More than half targeted annualized synergies confirmed

Q3'17 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 (from 4 April 2017)

Key figures

Q3'17	Q2'17	Q3'16 1)
962	912	869
188	106	143
55	(20)	40
51	(25)
19	(9)
796	777
979	937

Photo: Wlhlelmsen

1) Proforma figures

2) Wallenius Wilhelmsen Logistics ASA (100%)

3) Wilhelmsen group accounts/investment

• Reduced discount and currency lifting Treasure ASA value
• Reduction in Hyundai Glovis market value
• Wilhelmsen received second dividend of USD 13 million
• Total dividend received YTD'17 of USD 18 million

Q3'17 highlights Wilhelmsen's investment – market value (Mill. USD)

Key figures

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

2) Wilhelmsen investment

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

Photo: Hyundai Glovis

	Q3'17	Q2'17	Q3'16
100%	nil	195	11
100%			11
100%	nil	195	11
100%	(36)	47
100%	584	620	743
72.7%	424	451	539
72,7%	307	305	304

• Seasonally stable results from Norwegian offshore supply bases
• Continued weak performance at supply bases outside Norway
• Wilhelmsen increased ownership from ~40% to ~72%, with expected further increase to ~74%.

Q3'17 highlights

NorSea Group

NorSea Group provides supply bases and integrated logistics solution to the offshore industry Wilhelmsen owns ~72% of NorSea Group

Photo: NorSea Group

Total income and operating margin (weighted)

Mill. USD		Q3'17	Q2'17	Q3'16
Total income 1)	Mill. NOK	544	570	562
profit 2) Share of	Mill. USD	2	4	2
value of investment 2) Book	Mill. USD	152	93	86
Shareholder loan 2)	Mill. USD	19	18	18

1) NorSea Group (100%) including sales gains and share of profit associates

2) Wilhelmsen group accounts/investment

Key figures

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

• Gain on investment portfolio, reduced available-for-sale value
• Positive currency effect
• Qube second dividend of USD 1 million in Q3

Q3'17 highlights Available-for-sale financial assets (Mill. USD)

Key figures

Mill. USD	Q3'17	Q2'17	Q3'16
1) Income available-for-sale financial assets	1	8	1
Income investment management 2)	3	1	-1
1) Available-for-sale financial assets	137	142	131
Current financial investments 2)	99	91	82
Cash and cash equivalents 3)	32	69	34

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