Wilh. Wilhelmsen ASA

Earnings Release • Aug 9, 2017

Wilh. Wilhelmsen Holding: Presentation of the result for the second quarter and first half

Wilh. Wilhelmsen Holding: Presentation of the result for the second quarter and first half

Positive development in income

Our operating profit improved in the second quarter,

supported by increased activities in maritime services.

Recent restructuring activities lead to substantial

accounting effects.

Positive trend for group revenue

The group delivered a total income of USD 344 million in

second quarter. Adjusted for a non-recurring accounting gain

the total income was USD 146 million, up 5% from the

previous quarter.

In ships service, the revenue showed a positive trend, while

ship management delivered just below target due to loss of

vessels.

In addition to maritime services, we have investments and

shareholding in several companies, including Wallenius

Wilhelmsen Logistics ASA, NorSea Group and Treasure ASA. All

in all, we saw a positive development in the market

valuation of our strategic investments and listed entities.

As an example, the share price of Wallenius Wilhelmsen

improved 17% in the second quarter.

Structural activities

In addition to the finalising of the merger leading to

establishing Wallenius Wilhelmsen Logistics ASA, several

entities in the group implemented and finalised

organisational changes in the second quarter.

The second quarter was also busy with other structural

activities, including:

- With effect from 1 April, we took over Kemetyl's

sales and marketing activities for consumer products in

Norway.

- We announced an intention to by the technical

solutions business from Drew Marine. The final agreement is

subject regulatory approval.

- And we announced an intent to buy an additional 32%

of the shares in the NorSea Group.

What do we expect going forward?

Although the market conditions for ship service's products

and services continue to be challenging across vessel

segments. Ship management's services are also under price

pressure due to a frail market. Our revenue development will

therefore continue to be affected by a soft business

environment.

A new cost and organisational structure will support an

uplift in operating result for the maritime service segment.

Merger synergies will have a positive impact on net results

from our holding and investment segment, while the value

development of the investments for the listed entities are

subject to market pricing.

The first half of 2017 was characterised by several

structural changes and activities, and we will continue to

look for interesting opportunities to develop the group

further.

For further information, contact

Thomas Wilhelmsen, group CEO tel:

+47 67 58 40 00

Christian Berg, group CFO tel:

+47 917 46 910 (mob)

Åge S Holm, IRO tel:

+47 900 87 670 (mob)

Benedicte Teigen Gude, GVP corporate communications tel:

+47 959 07 951 (mob)