Quarterly Report • Aug 9, 2017
Quarterly Report
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On 9 August, Treasure ASA Extraordinary General Meeting approved additional dividend
| Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | ||||
|---|---|---|---|---|---|---|---|---|
| (USD mill) | Q2'17 | Q1'17 | Change | Q2'16 | Change | 30.06.17 | 30.06.16 | Change |
| Total income | 344 | 140 | 146 % | 240 | 43 % | 484 | 473 | 2 % |
| EBITDA | 210 | 4 | >500% | 2 0 |
>500% | 214 | 36 | >500% |
| Operating profit/EBIT | 206 | 0 | >500% | 1 3 |
>500% | 206 | 23 | >500% |
| Share of profits from associates | -4 | 0 | neg. | 2 1 |
neg. | -4 | 4 0 |
neg. |
| Net financial income/(expenses) | 2 3 |
8 | 190 % | -4 | neg. | 3 1 |
-11 | neg. |
| Tax income/(expenses) | -7 | -4 | neg. | -2 | neg. | -10 | -6 | neg. |
| Profit/(loss) from continued operations | 218 | 5 | >500% | 2 9 |
>500% | 222 | 46 | 379 % |
| Discontinued operations | -267 | 1 9 |
neg. | 1 2 |
neg. | -248 | 7 9 |
neg. |
| Profit/(loss) for the period | -49 | 2 3 |
neg. | 4 1 |
neg. | -26 | 125 | neg. |
| Profit/(loss) to owners of the parent | -100 | 2 3 |
neg. | 3 6 |
neg. | -77 | 117 | neg. |
| EPS (USD) | -2,16 | 0,51 | neg. | 0,78 | neg. | -1,65 | 2,51 | neg. |
| Other comprehensive income | 53 | 21 | 148 % | -18 | neg. | 74 | 51 | 45 % |
| Total comprehensive income | 4 | 4 5 |
-92 % | 2 3 |
-84 % | 48 | 176 | -73 % |
| Total comprehensive income owners of parent | -74 | 4 4 |
neg. | 1 8 |
neg. | -30 | 172 | neg. |
| Total assets | 2 760 | 4 660 | -41 % | 4 989 | -45 % | 2 760 | 4 989 | -45 % |
| Equity parent | 1 955 | 2 035 | -4 % | 1 885 | 4 % | 1 955 | 1 885 | 4 % |
| Total equity | 2 129 | 2 543 | -16 % | 2 377 | -10 % | 2 129 | 2 377 | -10 % |
| Equity ratio | 77 % | 55 % | 23 % | 48 % | 29 % | 77 % | 48 % | 29 % |
Total income for the Wilh. Wilhelmsen Holding ASA group (later referred to as Wilhelmsen, Wilhelmsen group or group) was USD 344 million in the second quarter of 2017. Total income included a USD 195 million gain from reclassification of Treasure ASA's investment in Hyundai Glovis from associate to available-for-sale financial assets in the Wilhelmsen group's accounts.
EBITDA was USD 210 million for the quarter. The group's maritime services segment experienced a rebound in operating profit from previous quarter, following implementation of a cost reduction program and a new organisational structure.
Share of profit from associates was a loss of USD 4 million, reflecting improved operations offset by net non-recurring losses for associates in the group's holding and investments segment.
Net financial income for the quarter was USD 23 million, including a sales gain and net currency effects within the holding and investments segment.
As a consequence of the merger between Wilh. Wilhelmsen ASA and Wallroll AB to form Wallenius Wilhelmsen Logistics ASA, the net result of Wilh. Wilhelmsen ASA prior to the merger has been reclassified as discontinued operations. A non-recurring accounting loss of USD 267 million has been included in the second quarter of 2017, representing the difference between the market value and net book value at time of the merger.
Other comprehensive income for the quarter was positive with USD 53 million, including a positive effect from increased value of available-for-sale financial investments.
Total comprehensive income attributable to owners of the parent was a loss of USD 74 million in the second quarter.
Total assets were reduced with 41% in the second quarter following the Wallenius Wilhelmsen Logistics ASA merger. The assets and liabilities of the group's previous investments in Wilh. Wilhelmsen ASA was recognised in full prior to the merger, while the investment post-merger is recognised on a net asset basis.
Total equity was also down, reflecting a loss for the quarter, dividend paid and elimination of post-merger noncontrolling interests in Wilh. Wilhelmsen ASA. With assets reduced more than equity, the Wilhelmsen group equity ratio increased to 77% as of 30 June 2017.
Cash and cash equivalents was USD 235 million by the end of the second quarter, an increase of USD 27 million for the quarter when excluding discontinued operations. Interest bearing debt increased with USD 32 million. Cash outflow for the quarter included USD 19 million in dividend payments to holders of the parent company and net investments of USD 27 million within the maritime services segment.
Result for the half year reflected the accounting effects of the Wallenius Wilhelmsen Logistics ASA merger and reclassification of investments. Contribution from operations improved in the second quarter, after a weak start of the year.
Total comprehensive income to owners of the parent was a loss of USD 30 million in the first half.
| Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | ||||
|---|---|---|---|---|---|---|---|---|
| USD mill - unless otherwise indicated |
Q2'17 | Q1'17 | Change | Q2'16 | Change | 30.06.17 | 30.06.16 | Change |
| Total income | 147 | 140 | 5 % | 234 | -37 % | 287 | 467 | -39 % |
| - Ships service | 134 | 129 | 4 % | 149 | -10 % | 263 | 299 | -12 % |
| - Ship management | 11 | 12 | -1 % | 12 | -3 % | 23 | 24 | -5 % |
| - Technical solutions | 0 | 0 | 73 | 0 | 142 | |||
| - Other/eliminations | 1 | 0 | 1 | 2 | 2 | |||
| EBITDA | 1 7 |
9 | 90 % | 2 2 |
-21 % | 26 | 40 | -35 % |
| - EBITDA margin (%) | 11,8 % | 6,5 % | 9,4 % | 9,2 % | 8,6 % | |||
| Operating profit/EBIT | 1 3 |
5 | 146 % | 1 6 |
-15 % | 19 | 28 | -33 % |
| - EBIT margin (%) | 9,2 % | 3,9 % | 6,8 % | 6,6 % | 6,1 % | |||
| Share of profit from associates | 1 | 1 | 1 | 2 | 2 | |||
| Financial income/(expense) | 1 | 6 | -7 | 6 | -12 | |||
| Tax income/(expense) | -4 | -3 | -3 | -7 | -5 | |||
| Profit/(loss) | 1 1 |
9 | 25 % | 8 | 51 % | 21 | 14 | 45 % |
| - Profit margin (%) | 7,8 % | 6,5 % | 3,2 % | 7,2 % | 3,0 % | |||
| - Non controlling interest | 0 | 0 | 0 | 1 | 1 | |||
| Profit/(loss) to owners of the parent | 1 1 |
9 | 27 % | 7 | 50 % | 20 | 14 | 47 % |
Total income from maritime services was USD 147 million in the second quarter, up 5% from the previous quarter. Operating profit and margin was up supported by improved performance within ships service, while non-recurring M&A related costs continued to have a negative effect on the results.
Financial income for the quarter was positively impacted by currency gains, while tax expenses were at normal levels.
The decrease in total income and operating result when compared with last year reflects sale of Callenberg Technology Group and safety activities in the second half of 2016.
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.
Total income for ships service was up 5% from the previous quarter. This mainly reflected increased income from agency activities, while marine products experienced a modest reduction in sales. Operating profit improved, following implementation of a new organisational structure.
Challenging markets, restructuring and cost-cutting initiatives among customers continued to have a price pressuring effect.
On 27 April, the Wilhelmsen group signed an agreement to acquire the technical solutions business from Drew Marine, subject regulatory approval.
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.
Total income and operating profit was broadly in line with the previous quarter. The difficult market conditions continued, with pressure on fees.
Average number of vessels on full technical management were slightly down compared with the previous quarter. By the end of the quarter, ship management served 390 ships worldwide, of which approximately 35% were on full technical management and 10% were on layup management. The remaining contracts were related to crewing services.
This includes Wilhelmsen Insurance Services (wholly owned Wilhelmsen subsidiary), Survitec Group (owned ~20%) and certain corporate activites. Survitec Group is reported as available-for-sale financial assets, with changes in market value reported under comprehensive income.
Income from corporate and other activities was stable for the quarter.
The second quarter included a total of USD 6 million in non-recurring corporate cost, primarily related to ongoing M&A projects and settlements related to previous transactions.
In May, Wilhelmsen Insurance Services was appointed sole broker to handle marine, land-based and company related insurances on behalf of Wallenius Wilhelmsen Logistics ASA following a tendering process.
The holding and investments segment includes investments in Wallenius Wilhelmsen Logistics ASA, Treasure ASA and NorSea Group, financial investments, and other holding and investments activities.
| USD mill | Q-on-Q | Y-o-Y | 01.01- | 01.01- | Y-o-Y | |||
|---|---|---|---|---|---|---|---|---|
| - unless otherwise indicated | Q2'17 | Q1'17 | Change | Q2'16 | Change | 30.06.17 | 30.06.16 | Change |
| Total income | 200 | 5 | >100% | 1 2 |
>100% | 205 | 1 7 |
>100% |
| - Holding | 5 | 7 | -30 % | 12 | -57 % | 12 | 17 | -30 % |
| - Other/eliminations | 195 | -2 | 0 | 193 | 0 | |||
| EBITDA | 193 | -5 | -2 | 187 | -5 | |||
| Operating profit/EBIT | 192 | -5 | -2 | 187 | -5 | |||
| Share of profit from associates | -5 | -1 | neg. | 2 0 |
neg. | -6 | 3 8 |
neg. |
| - Wallenius Wilhelmsen Logistics ASA | -9 | 0 | neg. | 0 | neg. | -9 | 0 | neg. |
| - NorSea Group | 4 | -1 | neg. | 2 | >100% | 3 | 6 | -52 % |
| - Hyundai Glovis (Treasure ASA) | 0 | 18 | 0 | 31 | -100 % | |||
| - Other/eliminations | 0 | 0 | neg. | 0 | neg. | 0 | 0 | neg. |
| Financial income/(expenses) | 2 2 |
2 | >100% | 3 | >100% | 2 5 |
0 | >100% |
| - Investment management (Holding) | 1 | 1 | 1 | 1 | 0 | |||
| - Available-for-sale (Treasure ASA) | 0 | 0 | 0 | 0 | 0 | |||
| - Available-for-sale (WWHI) | 8 | 1 | 4 | 10 | 4 | |||
| - Other financial income/(expense) | 14 | 0 | -3 | 14 | -3 | |||
| Tax income/(expense) | -3 | -1 | 1 | -4 | -1 | |||
| Profit/(loss) for the period | 206 | -5 | 2 1 |
202 | 3 2 |
|||
| - Non controlling interest | 51 | 1 | -5 | 52 | -8 | |||
| Profit/(loss) to owners of the parent | 155 | -4 | 1 7 |
151 | 1 2 |
| Market value - Investments and financial assets | ||||||||
|---|---|---|---|---|---|---|---|---|
| USD mill | Owner | Net | Dividend | Value | ||||
| - unless otherwise indicated | Owner | ship | Q1'17 | invest. | received | Other | change | Q2'17 |
| Wallenius Wilhelmsen Logistics ASA | WWH | 37,8 % | 0 | 790 | 147 | 937 | ||
| Treasure ASA | WWH | 72,7 % | 295 | -6 | 16 | 305 | ||
| Available-for-sale financial investments | WWHI | n.a. | 148 | -11 | 5 | 142 | ||
| Investment portfolio | WWH | n.a. | 87 | 91 | ||||
| Total main assets subject market pricing | 530 | 1 475 |
Net profit attributable to owners of the parents was USD 158 million for the holding and investments segment. This mainly reflected the USD 195 million gain from reclassification of Treasure ASA's investment in Hyundai Glovis from associate to available-for-sale financial assets.
Improved net result in NorSea Group, a Qube sales gain and net currency lifted the result, while share of net profit in Wallenius Wilhelmsen Logistics ASA was negative for the quarter.
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 the company, which is reported as associate in Wilhelmsen group's accounts, with share of net result reported as share of profit from associates.
On 4 April, the merger of Wilh. Wilhelmsen ASA and Wallroll AB was formally completed. The following day, Wallenius Wilhelmsen Logistics ASA started trading on the Oslo Stock Exchange under the new ticker, WWL.
Following the merger, Wallenius Wilhelmsen Logistics ASA is reported as associate in the Wilhelmsen group's equity accounts.
On 20 April, Wallenius Lines AB sold part of its newly acquired shares in the company. Following the share sale, both Wilhelmsen and Wallenius Lines AB owns 160 million shares in Wallenius Wilhelmsen Logistics ASA, representing an ownership share of approximately 37.8% each.
Total income for Wallenius Wilhelmsen Logistics ASA was USD 912 million in the second quarter. The underlying performance improved, with increased ocean volumes, improved cargo mix and continued positive development in the landbased segment. The result for the quarter included a merger accounting loss of USD 62 million and a USD 20 million restructuring cost.
Wilhelmsen's share of profit in Wallenius Wilhelmsen Logistics ASA was a loss of USD 9 million in the second quarter.
The Wallenius Wilhelmsen Logistics ASA share price was up 16.9% for the quarter, closing at NOK 49.10 (USD ~5.85). As of 30 June 2017, the market value of Wilhelmsen's shares was NOK 7 856 million (USD ~937 million), while the book value of the shareholding was USD 777 million.
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. Hyundai Glovis is from 4 April 2017 reported as available-for-sale financial investments in the Wilhelmsen group's accounts.
The value of the Hyundai Glovis shareholding in the Wilhelmsen group's accounts was USD 620 million by the end of the second quarter, including non-controlling interests in Treasure ASA. This was an increase of USD 242 million for the quarter, including a non-recurring gain of USD 195 million following a change of accounting principle on 4 April, and a USD 47 million mark-tomarket valuation change related to an increase in the share price after 4 April.
In May, Treasure ASA paid a dividend of NOK 0.30 per share. Total cash proceeds to Wilhelmsen was NOK 48 million (USD 6 million). On 9 August, the Treasure ASA board received approval from the extraordinary general meeting to pay additional dividend of NOK 0.65 per share, payable in the third quarter of 2017 (post quarter event).
The Treasure ASA share price was up 1.3% for the quarter, closing at NOK 16.00 (USD ~1.91). This represented a discount of 34% compared with net asset value of the company. As of 30 June 2017, the market value of Wilhelmsen's shareholding in Treasure ASA was NOK 2 560 million (USD ~305 million).
NorSea Group provides supply bases and integrated logistics solution to the offshore industry. Wilhelmsen owns 40% of NorSea Group. NorSea Group is reported as associate in Wilhelmsen group's accounts, with share of net result reported as share of profit from associates.
Preliminary total income for NorSea Group was NOK 570 million in the second quarter, including share of profits from associates and joint ventures and sales gains.
Operating profit was up for the quarter, supported by a sales gain and a partly seasonal increase in activities at Norwegian supply bases. Non-Norwegian activities had a weak quarter.
Wilhelmsen's share of net result in NorSea Group was USD 4 million for the quarter.
Financial investments includes cash and cash equivalents, current financial investments and available-for-sale financial assets held by the parent and fully owned subsidiaries.
The market value of available-for-sale financial assets was USD 142 million by the end of the second quarter, down from USD 148 million by the end of the previous quarter.
During the quarter, Wilhelmsen participated in a market equity raising in Qube Holdings Limited. Wilhelmsen later reduced the shareholding, with a sales gain of USD 8 million which was partly offset by a currency loss. By the end of the quarter, Wilhelmsen owned 65 million shares in Qube.
The current financial investment portfolio held by Wilhelmsen was USD 91 million by the end of the second quarter, up from USD 87 million by the end of the previous quarter. The portfolio primarily included Nordic equities and investment-grade bonds. Net income from investment management was a gain of USD 1 million in the second quarter.
Holding/other activities includes WilNor Governmental Services (owned 51%) and general holding activities.
Income was down in the second quarter, mainly due to reduced intra-company services provided by the holding company.
The main risks as considered by the board at that time are described in the annual report for 2016. While risk in general remains as described in the annual report, certain individual risk factors have been impacted by events which have taken place after completion of the annual report. Main events and impacts are described below.
The pickup in global growth remains on track. While U.S. growth projections are lower, growth has been revised up for Japan, China and especially the euro area. Risks around the global growth forecast appear broadly balanced in the near term, but remain skewed to the downside over the medium term (source IMF).
While global growth continue to support an increase in trade and shipping volumes, excess tonnage continues to impact most shipping segments.
Uncertainty related to future development in the oil price continue to weight on global offshore activities.
The merger of Wilh. Wilhelmsen ASA and Wallroll AB was formally completed in early April. While the subsequent merger process may have certain short
term impact on the operations, a new structure will facilitate a more effective operational and governance structure once fully implemented.
Late April, an agreement was signed to acquire the technical solutions business from Drew Marine. The transaction is subject regulatory approval. While a transaction is anticipated to have positive long term effects, the integration process might create short term operational risks.
Currencies, interest rates and commodity prices continued to fluctuate in the first half of 2017. More recently, lower growth projections and more cautious expectations for interest rate increases in the U.S. has resulted in a generally weaker USD. The oil price has for a period been back below USD 50/barrel following lower than anticipated effects from reduced oil production in OPEC and Russia.
A combination of a generally bullish equity market and company events have lifted the value of most Wilhelmsen investments during the first half. The most profound impact has been a 45% increase in the NOK value of the shareholding in Wallenius Wilhelmsen Logistics ASA (previously Wilh. Wilhelmsen ASA). The increase in the share price partly reflects merger synergies and a more robust corporate structure. The new structure is believed to reduce the risk related to the equity investment from a Wilhelmsen ownership perspective.
During the first half, Wilhelmsen announced significant new investments within the maritime services and oil and gas sector, subject a mix of regulatory approval and final agreement. The investments will, if completed, reduce the equity ratio and as such impact the Wilhelmsen group's financial risk.
New cost and organisational structure will continue to support an improved operating margin within the maritime services segment.
Merger synergies will positively impact net result for the holding and investment segment. Value development of investments subject market pricing will remain sensitive to development of the global stock market in addition to company specific events.
The board expects the general business environment to remain soft, affecting most group activities and performance. Structural changes and performance improvement will continue to support an improvement in operating margin of main activities.
Lysaker, 9 August 2017 The board of directors of Wilh. Wilhelmsen Holding ASA
Forward-looking statements presented in this report are based on various assumptions. These assumptions were reasonable when made, but as assumptions are inherently subject to uncertainties and contingencies which are difficult or impossible to predict. WWH cannot give assurances that expectations regarding the future outlook will be achieved or accomplished.
| USD mill | Note | 01.04 -30.06 | 01.04 -30.06 | YTD | YTD | Full year |
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | 2016 | ||
| Operating revenue | 146 | 239 | 285 | 472 | 867 | |
| Other income | ||||||
| Gain on sale of assets | 2 | 198 | 1 | 199 | 2 | 62 |
| Total income | 344 | 240 | 484 | 473 | 930 | |
| Operating expenses | ||||||
| Cost of goods and change in inventory | (42) | (104) | (87) | (214) | (377) | |
| Employee benefits | (57) | (72) | (117) | (143) | (279) | |
| Other expenses | (35) | (44) | (67) | (81) | (157) | |
| Operating profit before depreciation and amortisation | 210 | 20 | 214 | 36 | 116 | |
| Depreciation and impairments | 3 | (4) | (6) | (8) | (12) | (23) |
| Operating profit | 206 | 13 | 206 | 23 | 94 | |
| Share of profits from associates | 4 | (4) | 21 | (4) | 40 | 82 |
| Financial income | 35 | 5 | 37 | 4 | 11 | |
| Financial expenses | (11) | (9) | (6) | (15) | (35) | |
| Profit before tax | 225 | 30 | 233 | 52 | 151 | |
| Tax income/(expense) | (7) | (2) | (10) | (6) | (14) | |
| Profit from continued operations | 218 | 29 | 222 | 46 | 138 | |
| Discontinued operations | ||||||
| Net profit/(loss) from discontinued operations (net after tax) | 6 | (267) | 12 | (248) | 79 | 82 |
| Profit for the period | (49) | 41 | (26) | 125 | 220 | |
| Attributable to: non-controlling interests continued operations | 51 | 5 | 51 | 9 | 19 | |
| owners of the parent | (100) | 36 | (77) | 117 | 201 | |
| Basic earnings per share (USD) | 7 | (2,16) | 0,78 | (1,65) | 2,51 | 4,34 |
| Comprehensive income - financial report | ||||||
| USD mill | 01.04 -30.06 | 01.04 -30.06 | YTD | YTD | Full year | |
| 2017 | 2016 | 2017 | 2016 | 2016 | ||
| Profit for the period | (49) | 41 | (26) | 125 | 220 | |
| Items that may be reclassified to income statement | ||||||
| Revaluation mark to market value available for sale financial assets | 47 | (10) | 53 | (0) | 2 | |
| Comprehensive income from associates | (1) | (1) | 0 | 0 | ||
| Currency translation differences | (67) | (15) | (53) | 49 | 51 | |
| Comprehensive income discontinued operations | (2) | 6 | (1) | 2 | 12 | |
| Items that will not be reclassified to income statement | ||||||
| Currency translation differences investments | 76 | 76 | 0 | |||
| Other comprehensive income, net of tax | 53 | (18) | 74 | 51 | 65 | |
| Total comprehensive income for the period | 4 | 23 | 48 | 176 | 285 | |
| Total comprehensive income attributable to: | ||||||
| Owners of the parent continued operations | 192 | 6 | 218 | 93 | 183 | |
| Owners of the parent discontinued operations | (267) | 12 | (248) | 79 | 82 | |
| Non-controlling interests | 78 | 5 | 78 | 4 | 19 | |
| Total comprehensive income for the period | 4 | 23 | 48 | 176 | 285 |
The above consolidated income statement should be read in conjunction with the accompanying notes.
| USD mill | Note | 30.06.2017 | 30.06.2016 | 31.12.2016 |
|---|---|---|---|---|
| Deferred tax asset | 5 | 17 | 100 | 75 |
| Goodwill and other intangible assets | 3 | 162 | 212 | 145 |
| Vessels, property and other tangible assets | 3 | 181 | 2 107 | 2 047 |
| Investments in joint ventures and associates | 4 | 883 | 1 219 | 1 259 |
| Available-for-sale financial assets | 8 | 845 | 122 | 209 |
| Other non current assets | 48 | 28 | 47 | |
| Total non current assets | 2 135 | 3 787 | 3 781 | |
| Inventory | 73 | 116 | 65 | |
| Current financial investments | 91 | 341 | 285 | |
| Other current assets | 226 | 366 | 268 | |
| Cash and cash equivalents | 235 | 378 | 296 | |
| Total current assets Total assets |
625 2 760 |
1 201 4 989 |
914 4 695 |
|
| Paid-in capital | 7 | 122 | 122 | 122 |
| Retained earnings | 7/9 | 1 833 | 1 763 | 1 868 |
| Attributable to equity holders of the parent | 1 955 | 1 885 | 1 990 | |
| Non-controlling interests | 173 | 492 | 502 | |
| Total equity | 2 129 | 2 377 | 2 492 | |
| Pension liabilities | 24 | 69 | 63 | |
| Deferred tax | 5 | 14 | 17 | 12 |
| Non-current interest-bearing debt | 10 | 234 | 1 599 | 1 418 |
| Other non-current liabilities | 100 | 274 | 233 | |
| Total non current liabilities | 372 | 1 959 | 1 727 | |
| Current income tax | 5 | 9 | 15 | |
| Public duties payable Current interest-bearing debt |
10 | 5 0 |
8 180 |
7 115 |
| Other current liabilities | 249 | 456 | 340 | |
| Total current liabilities | 260 | 653 | 477 | |
| Total equity and liabilities | 2 760 | 4 989 | 4 695 |
The above consolidated balance sheet should be read in conjunction with the accompanying notes.
| USD mill | 01.04 -30.06 | 01.04 -30.06 | YTD | YTD |
|---|---|---|---|---|
| Note | 2017 | 2016 | 2017 | 2016 |
| Cash flow from operating activities | ||||
| Profit before tax (included discontinued operations) | (142) | 46 | (109) | 163 |
| Financial (income)/expenses | (18) | 0 | (16) | 33 |
| Financial derivatives unrealised | (10) | 13 | (12) | 3 |
| Depreciation/impairment 3/6 |
4 | 26 | 28 | 52 |
| Loss/ (gain) on sale of fixed assets 3 |
(0) | (2) | (9) | 2 |
| (Gain)/loss from sale of subsidiaries, joint ventures and associates | ||||
| (excluding cash) 6 |
50 | 0 | 50 | 0 |
| Change in net pension asset/liability | 2 | (1) | 1 | 1 |
| Change in inventory | (11) | (1) | (12) | (6) |
| Change in other working capital | 31 | 57 | 19 | 49 |
| Tax paid (company income tax, withholding tax) | (5) | (5) | (7) | (5) |
| Net cash provided by operating activities | (99) | 134 | (67) | 291 |
| Cash flow from investing activities | ||||
| Share of profit from joint ventures and associates | (5) | (36) | (19) | (145) |
| Dividend received from joint ventures and associates | 14 | 55 | 15 | 56 |
| Proceeds from sale of fixed assets 3 |
0 | 5 | 54 | 19 |
| Investments in fixed assets 3 |
(8) | (139) | (12) | (159) |
| Net proceeds from sale of subsidiaries | 14 | 0 | 14 | 0 |
| Investments in subsidaries, joint ventures and associates | (21) | 0 | (21) | (1) |
| Loans granted to joint ventures and associates | 0 | (8) | (0) | (8) |
| Proceeds from sale of financial investments | 16 | 41 | 101 | 57 |
| Current financial investments | (4) | (44) | (43) | (74) |
| Interest received | 1 | 1 | 1 | 2 |
| Net cash flow from investing activities | 6 | (125) | 89 | (254) |
| Cash flow from financing activities | ||||
| Proceeds from issue of debt | 30 | 190 | 30 | 202 |
| Repayment of debt | 0 | (45) | (64) | (100) |
| Interest paid including interest derivatives | (9) | (16) | (33) | (40) |
| Cash from financial derivatives | 3 | (15) | 7 | (16) |
| Dividend to shareholders/purchase of own shares | (23) | (17) | (23) | (17) |
| Net cash flow from financing activities | 1 | 97 | (83) | 30 |
| Net increase in cash and cash equivalents 1 | (93) | 105 | (61) | 67 |
| Cash and cash equivalents at the beg. of the period 1 Cash and cash equivalents at the end of the period 1 |
328 | 273 | 296 | 312 |
| 235 | 378 | 235 | 378 | |
| The net cash flow from discontnued operations are: | ||||
| Net cash provided by operattive activities from discontinued operations | 117 | 7 | 155 | |
| Net cash provided by investing activities from discontinued operations | (138) | 107 | (139) | |
| Net cash provided by financing activities from discontinued operations | 84 | (74) | 26 | |
| Cash and cash equivalents related to discontinued operations (at the end of the period) | ||||
| the date of merger and 30.06.2016 1 Excluding restricted cash. |
121 | 150 | 121 | 150 |
The group is located and operating world wide, and every entity has several bank accounts in different currencies. Unrealised currency effects are included in net cash provided by operating activities.
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
| Retained | Non controlling |
||||
|---|---|---|---|---|---|
| USD mill | Share capital | earnings | Total | interests | Total equity |
| Balance at 31.12.2016 | 122 | 1 868 | 1 990 | 502 | 2 492 |
| Profit for the period | (77) | (77) | (49) | (126) | |
| Other comprehensive income | 61 | 61 | 13 | 74 | |
| Outgoing non-controlling interests | (289) | (289) | |||
| Paid dividends to shareholders | (19) | (19) | (4) | (23) | |
| Balance 30.06.2017 | 122 | 1 834 | 1 955 | 173 | 2 129 |
| Balance at 31.12.2015 | 122 | 1 632 | 1 754 | 452 | 2 206 |
| Profit for the period | 117 | 117 | 38 | 155 | |
| Other comprehensive income | 31 | 31 | 2 | 33 | |
| Paid dividends to shareholders | (16) | (16) | (1) | (17) | |
| Balance 30.06.2016 | 122 | 1 763 | 1 885 | 492 | 2 377 |
| USD mill | Share capital | Retained earnings |
Total | Non controlling interests |
Total equity |
|---|---|---|---|---|---|
| Balance at 31.12.2015 | 122 | 1 632 | 1 754 | 452 | 2 206 |
| Profit for the period | 201 | 201 | 49 | 251 | |
| Comprehensive income | 62 | 62 | 2 | 65 | |
| Paid dividends to shareholders | (28) | (28) | (2) | (30) | |
| Balance 31.12.2016 | 122 | 1 868 | 1 990 | 502 | 2 492 |
This consolidated interim financial report has been prepared in accordance with International Accounting Standards (IAS 34), "interim financial reporting". The consolidated interim financial reporting should be read in conjunction with the annual financial statements for the year end 31 December 2016 for Wilh.Wilhelmsen Holding ASA group (WWI), which has been prepared in accordance with IFRS's endorsed by the EU.
Second quarter
The merger between Wall Roll AB (part of Wallenius Rederiarne AB) and WWASA was completed in beginning of April. After the completion the group own 37.8% of Wallenius Wilhelmsen Logistics ASA (WWL). The investment in WWL ASA is treated as an associate company (equitymethod) The merger effect was an accounting loss of USD 367 mill and presented as discontinued operations. The initial investment cost of WWL was stock price 4 April 2017 NOK 42.50 per share.
In addition the group acquired Kemetyl Konsument Norge AS at 1 April 2017. The
Fourth quarter
Disposal of 100% shares in Callenberg group with a loss of USD 15 mill. Disposal of Wilhelmsen safety activities (100% of shares in Wilhelmsen Technical Solution AS and safety division in Wilhelmsen Ships Service group) by a gain of USD 71 mill. The net proceeds (cash) from both disposals were USD 150 mill.
There has not been any significant acquistions or disposals during the third quarter
Treasure ASA was demerger from WWASA and the company was listed at 8 June 2016. Treasure ASA hold 12.04% ownership in the listed company Hyundai Glovis. Treasure ASA group is a part of Holding & Investment segment. See separate note for restated figures.
The accounting policies implemented are consistent with those of the annual financial statements for WWI for the year end 31 December 2016.
As a result of rounding adjustments, the figures in one or more columns may not add up to the total of that column.
investment cost was approximately USD 20 mill.
The presentation of the investment in Hyundai Glovis Ltd is changed from an associate to available-for-sale financial assets. The change in accounting principle give an accounting gain of USD 195 mill. The accounting principle of the investment is in line with Treasure ASA presentation.
First quarter No material disposal or acquistion.
Investments in WWASA segment
WWL has acquired the full ownership of WWL Vehicle Services Americas (VSA), previously a joint venture, based in USA. The company employs 3 400 employees and handles some 4.7 million units annually.
With full ownership, WWL strengthens its position as a leading provider of vehicle processing for automotive manufacturers in North America.
WWL has also acquired the full ownership of CAT-WWL, previously a joint venture, based in South Africa.
With full ownership in CAT-WWL, a network of ten vehicle-processing facilities, WWL becomes one of the top independent providers of vehicle processing services to support automotive manufacturers in South Africa. The business employs more than 900 workers and handles some 680 000 units.
In addition, WWL has sold Vehicle Services Europe (VSE) to Groupe CAT. The company employs some 400 employees with truck based inland distribution in Europe and three vehicle processing centres in Germany.
| USD mill | Vessels / Newbuilding contracts |
Other tangible assets |
Intangible assets |
Total tangible and intangible assets |
|---|---|---|---|---|
| 2017 | ||||
| Cost price 1.1 | 2 457 | 278 | 208 | 2 944 |
| Acquisition | 0 | 11 | 22 | 33 |
| Reclass/disposal | (2 457) | (6) | (6) | (2 470) |
| Currency translation differences Cost price 30.06 |
0 0 |
13 297 |
5 229 |
19 526 |
| Accumulated depreciation and impairment losses 1.1 | (579) | (110) | (63) | (752) |
| Depreciation/amortisation | (5) | (3) | (8) | |
| Depreciation discontinued operations | (20) | (0) | (20) | |
| Reclass/disposal | 599 | 3 | (0) | 602 |
| Currency translation differences | 0 | (4) | (1) | (5) |
| Accumulated depreciation and impairment losses 30.06 | 0 | (116) | (68) | (184) |
| Carrying amounts 30.06 | 0 | 181 | 162 | 342 |
| 2016 | ||||
| Cost price 1.1 | 2 472 | 307 | 325 | 3 105 |
| Acquisition | 142 | 10 | 5 | 157 |
| Reclass/disposal | (160) | (7) | 0 | (166) |
| Currency translation differences | 0 | 12 | 10 | 22 |
| Cost price 30.06 | 2 455 | 322 | 341 | 3 118 |
| Accumulated depreciation and impairment losses 1.1 | (646) | (122) | (121) | (889) |
| Depreciation/amortisation | (7) | (5) | (12) | |
| Depreciation discontinued operations | (40) | (0) | (40) | |
| Reclass/disposal Currency translation differences |
143 0 |
5 (4) |
(1) (2) |
147 (6) |
| Accumulated depreciation and impairment losses 30.06 | (542) | (128) | (129) | (799) |
| Carrying amounts 30.06 | 1 913 | 194 | 212 | 2 319 |
| 2016 Full year | ||||
| Cost price 1.1 | 2 472 | 307 | 325 | 3 105 |
| Acquisition | 149 | 50 | 6 | 206 |
| Reclass/disposal | (164) | (75) | (126) | (365) |
| Currency translation differences | 0 | (4) | 2 | (2) |
| Cost price 31.12 | 2 457 | 278 | 208 | 2 944 |
| Accumulated depreciation and impairment losses 1.1 | (646) | (122) | (121) | (889) |
| Depreciation/amortisation | (14) | (9) | (23) | |
| Depreciation discontinued operations | (81) | (0) | (81) | |
| Reclass/disposal | 148 | 25 | 66 | 239 |
| Currency translation differences | 0 | 1 | 0 | 1 |
| Accumulated depreciation and impairment losses 31.12 | (579) | (110) | (63) | (752) |
| Carrying amounts 31.12 | 1 878 | 168 | 145 | 2 191 |
The restructuring of the group has changed the presentation of investment in associates. The net profit from associates has been moved from operating activities to be a part of investing and financial activities in the group.
As a consequence of the merger between WWASA and Wall Roll AB, the
investment in WWL ASA is classified as associate.
In additional the investment in Hyundai Glovis has been changed from associate to an available-for-sale financial assets at the same time as the merger between WWASA and Wallroll.
Material associates at the end June 2017 are: USD mill
| 30.06.2017 | ||
|---|---|---|
| Holding and Investments segment: | Ownership | Booked value |
| Wallenius Wilhelmsen Logistics ASA | 37.8% | 777 |
| NorSea Group AS | 40 % | 93 |
| Share of profit from associates | Q2 2017 |
|---|---|
| Wallenius Wilhelmsen Logistics ASA | (9) |
| NorSea Group AS | 4 |
| Associates in Maritime Services | 2 |
| Share of profit from associates | (4) |
The effective tax rate for the group will, from period to period, change dependent on the group gains and losses from investments inside the exemption method.
On 4 April 2017 the subsidary WW ASA was merged with Wall Roll AB. After the merger the group own 37.8% of the WWL ASA. The profit in WWASA previous periods is presented as discontinued operations in WWH. The assets and liabilities from WWASA segment are included in the group balance sheet at 30.06 2016 and 31.12.2016.
Financial information (income statement and net assets) relating to the discontinued operations for each period to the date of disposal is set out below.
The financial performance and cash flow information presented are for the Q1 2017, Q2 2016, YTD 2016 and the year ended 31 December 2016
| Full year | ||||
|---|---|---|---|---|
| USD mill | Q1 2017 | Q2 2016 | YTD Q2 2016 | 2016 |
| Operating revenue | 59 | 65 | 135 | 257 |
| Other income | ||||
| Share of profits from associates | 14 | 16 | 105 | 106 |
| Gain on sale of assets | 9 | - | (0) | |
| Total income | 82 | 81 | 239 | 363 |
| Operating expenses | ||||
| Vessel expenses | (15) | (15) | (30) | (61) |
| Inventory cost | ||||
| Employee benefits | (11) | (12) | (24) | (51) |
| Other expenses | (3) | (4) | (10) | (18) |
| Depreciation and impairments | (20) | (20) | (40) | (81) |
| Total operating expenses | (49) | (50) | (104) | (212) |
| Operating profit | 33 | 31 | 135 | 151 |
| Financial income/(expenses) | (8) | (15) | (25) | (17) |
| Profit before tax | 25 | 16 | 110 | 134 |
| Tax income/(expense) | 1 | 1 | (2) | (22) |
| Minority interest | 7 | 5 | 30 | 31 |
| Profit from discontinued operations | 19 | 12 | 79 | 82 |
| Changes in fair value cash flow hedge | (0) | 6 | 8 | (7) |
| Exchange differences on translation of discontinued operations | 2 | 1 | (5) | |
| Remeasurement pension liabilities, net of tax | 5 | |||
| Other comprehensive income from discontinued operations | 1 | 6 | 9 | (8) |
| Cash flow from discontinued operations | ||||
| Net cash flow from operating activities | 7 | 117 | 155 | 211 |
| Net cash flow from investing activities | 107 | (138) | (139) | (95) |
| Net cash flow from financing activities | (74) | 84 | 26 | (143) |
| Net increase in cash generated by the discontinued operations | 40 | 63 | 42 | (27) |
| Details of the merger between the subsidiary WWASA and Wall Roll AB | Q2 2017 | |||
| Cash | 14 | |||
| Shares in Wallenius Wilhelmsen Logistics ASA (market value) | 789 | |||
| Total disposals consideration | 803 | |||
| Carrying amount of net assets disposal | 1 165 | |||
| Currency translation differences in WWASA group | (5) | |||
| Non- controlling interests | 100 | |||
| Accounting loss (discontinued operations) majority | (267) |
Details of the merger between WWASA group and Wall Roll AB
| The carry amounts of assets and liabilities as at the date of the merger 04. April 2017 were: | 04.04.2017 |
|---|---|
| Deferred tax asset | 56 |
| Intangible assets | 6 |
| Tangible assets | 1 822 |
| Investments in joint ventures and associates | 775 |
| Other non current assets | 1 |
| Current financial investments | 150 |
| Other current assets | 16 |
| Cash and cash equivalents | 121 |
| Total Assets | 2 946 |
| Deferred tax | 0 |
| Interest-bearing debt | 1 267 |
| Other non current liabilities | 164 |
| Other current liabilities | 55 |
| Non controlling interests | 296 |
| Total liabilities | 1 781 |
| Net assets | 1 165 |
The following assets and liabilities are related to the discontinued operations as at 30. June 2016 and 31 December 2016:
| 30.06.2016 | 31.12.2016 | |
|---|---|---|
| Assets and liabilities related to discontinued operations | ||
| Deferred tax asset | 77 | 55 |
| Intangible assets | 6 | 6 |
| Tangible assets | 1 913 | 1 879 |
| Investments in joint ventures and associates | 761 | 768 |
| Other non current assets | 1 | 1 |
| Current financial investments | 256 | 202 |
| Other current assets | 21 | 22 |
| Cash and cash equivalents | 150 | 81 |
| Total Assets | 3 186 | 3 013 |
| Deferred tax | 0 | 0 |
| Interest-bearing debt | 1 425 | 1 320 |
| Other non current liabilities | 211 | 169 |
| Other current liabilities | 120 | 89 |
| Total liabilities | 1 756 | 1 578 |
The share capital is as follow with a nominal value of NOK 20:
| 34 637 092 |
|---|
| 11 866 732 |
| 46 503 824 |
Earnings per share taking into consideration the number of outstanding shares in the period. The group acquired 100.000 own A shares during August 2011.
Basic earnings per share is calculated by dividing profit for the period after minority interests, by average number of total outstanding shares.
Earnings per share is calculated based on 46 403 824 shares for 2017, and each quarter in 2016.
| USD mill | 30.06.2017 | 30.06.2016 | 31.12.2016 |
|---|---|---|---|
| Available-for-sale financial assets | |||
| At 1 January | 209 | 122 | 122 |
| Acquistion | 12 | 12 | 91 |
| Sale during the year | (11) | (7) | (7) |
| Change of accounting principle Hyundai Glovis | 573 | ||
| Mark to market valuation | 50 | (7) | 4 |
| Currency translation adjustment | 12 | 2 | (2) |
| Total available-for-sale financial assets | 845 | 122 | 209 |
Available-for-sale financial assets is held in subsidiaries with different functional currencies and thereby creating translation adjustment.
Dividend for fiscal year 2015 was NOK 5.00 per share, where NOK 3.00 per share was paid in May 2016 and NOK 2.00 per share was paid in November 2016.
The proposed dividend for fiscal year 2016 is NOK 3.50 per share, was approved
by the annual general meeting on 27 April 2017, and paid to the shareholders in May 2017.
| USD mill | 30.06.2017 | 30.06.2016 | 31.12.2016 |
|---|---|---|---|
| Non current interest-bearing debt | 234 | 354 | 213 |
| Current interest-bearing debt | 0 | 0 | 0 |
| Interest-bearing debt discontinued operations | 1 425 | 1 320 | |
| Total interest-bearing debt | 234 | 1 779 | 1 533 |
| Cash and cash equivalents | 328 | 228 | 215 |
| Current financial investments | 88 | 85 | 83 |
| Cash and cash equivalents and current financial investments discontinued operations | 406 | 283 | |
| Net interest-bearing debt | (182) | 1 060 | 953 |
Loan agreements entered into by group companies contain financial covenants related to equity ratio, liquidity, current ratio and net interest-bearing debt / EBITDA measured in respect of the relevant borrowing company or group of
companies. The group was in compliance with these covenants at 30 June 2017 (analogous for 30 June 2016).
| Specification of interest-bearing debt | |||
|---|---|---|---|
| USD mill | 30.06.2017 | 30.06.2016 | 31.12.2016 |
| Interest-bearing debt | |||
| Bankloan | 234 | 354 | 213 |
| Interest-bearing debt discontinued operations | 1 425 | 1 320 | |
| Total interest-bearing debt | 234 | 1 779 | 1 533 |
| Repayment schedule for interest-bearing debt | |||
| Due in 2017 | 0 | 125 | 115 |
| Due in 2018 | 34 | 147 | 325 |
| Due in 2019 | 200 | 290 | 486 |
| Due in 2020 | 668 | 83 | |
| Due in 2021 and later | 549 | 523 | |
| Total interest-bearing debt | 234 | 1 779 | 1 533 |
| USD mill | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| 2017 | ||||
| Financial assets at fair value | ||||
| Equities | 48 | 48 | ||
| Bonds | 42 | 0 | 42 | |
| Financial derivatives | 0 | 0 | ||
| Available-for-sale financial assets | 751 | 94 | 845 | |
| Total financial assets 30.06 | 841 | 0 | 94 | 935 |
| Financial liabilities at fair value | ||||
| Financial derivatives | (0) | (0) | ||
| Total financial liabilities 30.06 | 0 | (0) | 0 | (0) |
| 2016 | ||||
| Financial assets at fair value | ||||
| Equities | 110 | 110 | ||
| Bonds | 230 | 0 | 230 | |
| Financial derivatives | 0 | 0 | ||
| Available-for-sale financial assets | 115 | 6 | 122 | |
| Total financial assets 30.06 | 471 | 0 | 6 | 478 |
| Financial liabilities at fair value | ||||
| Financial derivatives | 219 | 219 | ||
| Total financial liabilities 30.06 | 0 | 231 | 0 | 231 |
The fair value of financial instruments traded in an active market is based on quoted market prices at the balance sheet date. The fair value of financial instruments that are not traded in an active market (over-the-counter contracts) are based on third party quotes. These quotes use the maximum number of observable market rates for price discovery. Specific valuation techniques used by financial counterparties (banks) to value financial derivatives include:
Quoted market prices or dealer quotes for similar derivatives - The fair value of interest rate swaps is calculated as the net present value of the estimated future cash flows based on observable yield curves
The fair value of interest rate swap option (swaption) contracts is determined using observable volatility, yield curve and time-to-maturity parameters at the balance sheet date, resulting in a swaption premium. Options are typically valued by applying the Black-Scholes model.
The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the resulting value discounted back to net present value
The fair value of foreign exchange option contracts is determined using observable forward exchange rates, volatility, yield curves and time-to-maturity parameters at the balance sheet date, resulting in an option premium. Options are typically valued by applying the Black-Scholes model.
The carrying value less impairment provision of receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the group for similar financial derivatives.
The fair values, except for bond debt, are based on cash flows discounted using a rate based on market rates including margins and are within level 2 of the fair
value hierarchy. The fair values of the bond debt are based on quoted prices and are also classified within level 2 of the fair value hierarchy due to limited trading in an active market.
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis.
The quoted market price used for financial assets held by the group is the current mid price. These instruments are included in level 1. Instruments included in level 1 at the end of June 2017 are liquid investment grade bonds (analogous for 2016).
The fair value of financial instruments that are not traded in an active market (over-the-counter contracts) are based on third party quotes (Mark-to-Market). These quotes use the maximum number of observable market rates for price discovery. The different techniques typically applied by financial counterparties (banks) were described above. These instruments - FX and IR derivatives - are included in level 2.
If one or more of the significant inputs is not based on observable market data, the derivatives is in level 3. Primarily illiquid investment funds and structured notes are included in level 3.
| Eliminations | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Maritime | Holding & | /discontinued | WWH group | ||||||||
| USD mill | Services | Investments | operations | total | |||||||
| Quarter | Q2 2017 |
Q2 2016 |
Q2 2017 |
Q2 2016 |
Q2 2017 |
Q2 2016 |
Q2 2017 |
Q2 2016 |
|||
| Operating revenue | 144 | 233 | 5 | 12 | (3) | (6) | 146 | 239 | |||
| Gain of sale of assets | 3 | 1 | 195 | 198 | 1 | ||||||
| Total income | 147 | 234 | 200 | 12 | (3) | (6) | 344 | 240 | |||
| Operating expenses | |||||||||||
| Cost of goods and change in inventory | (42) | (104) | (0) | (42) | (104) | ||||||
| Employee benefits | (53) | (68) | (4) | (4) | (57) | (72) | |||||
| Other expenses | (34) | (40) | (4) | (10) | 3 | 6 | (35) | (44) | |||
| Depreciation and impairments | (4) | (6) | (0) | (4) | (6) | ||||||
| Total operating expenses | (133) | (218) | (8) | (14) | 3 | 6 | (139) | (226) | |||
| Operating profit | 13 | 16 | 192 | (2) | 206 | 14 | |||||
| Share of profits from associates | 1 | 1 | (5) | 20 | (4) | 21 | |||||
| Net finance income / expenses | 1 | (7) | 22 | 3 | 23 | (4) | |||||
| Profit/(loss) before tax | 15 | 10 | 209 | 20 | 0 | 225 | 30 | ||||
| Tax income/(expense) | (4) | (3) | (3) | 1 | (7) | (2) | |||||
| Profit/(loss) | 11 | 8 | 206 | 21 | 0 | 218 | 29 | ||||
| Result of discontinued operations | (267) | 12 | (267) | 12 | |||||||
| Non-controlling interests | 0 | 0 | 51 | 5 | 51 | 5 | |||||
| Profit/(loss) to the owners of parent | 11 | 7 | 155 | 17 | (267) | 12 | (100) | 36 |
| Eliminations | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD mill | Maritime Services | Holding & Investments | /discontinued operations | Total | ||||||||
| YTD | YTD 2017 YTD 2016 | Full year 2016 |
YTD 2017 YTD 2016 | Full year 2016 |
YTD 2017 YTD 2016 | Full year 2016 |
YTD 2017 YTD 2016 | Full year 2016 |
||||
| Operating revenue | 284 | 466 | 862 | 6 | 17 | 29 | (4) | (12) | (23) | 285 | 472 | 867 |
| Gain of sale of assets | 4 | 2 | 62 | 195 | 199 | 2 | 62 | |||||
| Total income | 287 | 468 | 924 | 201 | 17 | 29 | (4) | (12) | (23) | 484 | 473 | 930 |
| Operating expenses | ||||||||||||
| Cost of goods and change in inventory | (86) | (213) | (376) | (0) | (0) | (1) | (87) | (214) | (377) | |||
| Employee benefits | (107) | (136) | (263) | (10) | (8) | (17) | 0 | (117) | (143) | (280) | ||
| Other expenses | (68) | (79) | (158) | (4) | (14) | (21) | 4 | 11 | 23 | (67) | (81) | (156) |
| Depreciation and impairments | (7) | (12) | (22) | (0) | (8) | (12) | (22) | |||||
| Total operating expenses | (268) | (439) | (820) | (14) | (22) | (39) | 4 | 12 | 23 | (278) | (450) | (836) |
| Operating profit | 19 | 28 | 104 | 187 | (5) | (10) | 0 | 0 | 0 | 206 | 24 | 94 |
| Share of profit from associates | 2 | 2 | 4 | (6) | 38 | 77 | (4) | 40 | 82 | |||
| Net finance income / expenses | 6 | (12) | (28) | 25 | 0 | 4 | 31 | (11) | (24) | |||
| Profit/(loss) before tax | 27 | 19 | 80 | 206 | 33 | 72 | 233 | 52 | 152 | |||
| Tax income/(expense) | (7) | (5) | (15) | (4) | (1) | 2 | (10) | (6) | (14) | |||
| Profit/(loss) | 21 | 14 | 65 | 202 | 32 | 73 | 222 | 47 | 138 | |||
| Result of discontinued operations | (249) | 79 | 82 | (249) | 79 | 82 | ||||||
| Non-controlling interests | 1 | 1 | 1 | 51 | 8 | 18 | 0 | 51 | 9 | 19 | ||
| Profit/(loss) to the owners of parent | 20 | 14 | 64 | 151 | 24 | 56 | (249) | 79 | 82 | (77) | 117 | 201 |
| WWASA group | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (discontinued | Holding & | ||||||||||
| USD mill | operations) | Maritime Services | Investments | Eliminations | Total | ||||||
| 30.06 | 31.12 | 30.06 | 31.12 | 30.06 | 31.12 | 30.06 | 31.12 | 30.06 | 31.12 | ||
| Year to date | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |
| Assets | |||||||||||
| Deferred tax asset | 55 | 17 | 15 | 0 | 5 | 0 | 0 | 17 | 75 | ||
| Intangible assets | 6 | 161 | 138 | 1 | 0 | 0 | 0 | 162 | 145 | ||
| Tangible assets | 1 879 | 178 | 166 | 2 | 2 | 0 | 0 | 181 | 2 047 | ||
| Investments in joint ventures and associates | 768 | 12 | 13 | 871 | 479 | 0 | 0 | 883 | 1 259 | ||
| Other non current assets | 1 | 112 | 108 | 781 | 147 | 0 | 0 | 893 | 256 | ||
| Current financial investments | 202 | 0 | 0 | 91 | 83 | 0 | 0 | 91 | 285 | ||
| Other current assets | 22 | 296 | 307 | 35 | 7 | (31) | (2) | 300 | 333 | ||
| Cash and cash equivalents | 81 | 146 | 161 | 88 | 54 | 0 | 0 | 235 | 296 | ||
| Total assets | 3 013 | 922 | 908 | 1 868 | 776 | (31) | (2) | 2 760 | 4 695 | ||
| Equity and liabilities | |||||||||||
| Equity majority | 1 146 | 312 | 330 | 1 643 | 514 | 0 | 0 | 1 955 | 1 990 | ||
| Equity minority interests | 289 | (2) | (1) | 175 | 214 | 173 | 502 | ||||
| Deferred tax | 0 | 14 | 12 | 0 | 0 | 0 | 0 | 14 | 12 | ||
| Interest-bearing debt | 1 320 | 200 | 179 | 35 | 34 | 0 | 0 | 234 | 1 533 | ||
| Other non current liabilities | 169 | 115 | 120 | 8 | 7 | 0 | 0 | 123 | 296 | ||
| Other current liabilities | 89 | 283 | 267 | 8 | 7 | (31) | (2) | 260 | 362 | ||
| Total equity and liabilities | 3 013 | 922 | 908 | 1 868 | 776 | (31) | (2) | 2 760 | 4 695 |
| USD mill | WMS group | Holding & Investments | operations | ||||
|---|---|---|---|---|---|---|---|
| Quarter | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | Q2 2017 | Q2 2016 | |
| Profit before tax | 15 | 10 | (156) | 20 | |||
| Net financial (income)/expenses | (1) | 10 | (22) | (3) | |||
| Depreciation/impairment | 4 | 6 | 0 | 0 | |||
| Change in working capital | (9) | 7 | 2 | 6 | |||
| Net (gain)/loss from sale of subsidiaries and fixed assets | (1) | 171 | |||||
| Net cash provided by operating activities | 9 | 34 | (5) | 23 | - | 117 | |
| Share of profit from joint ventures and associates | (1) | (1) | 5 | (20) | |||
| Dividend received from joint ventures and associates | 2 | 2 | 12 | ||||
| Net sale/(investments) in fixed assets | (6) | (9) | (0) | 0 | |||
| Net sale/(investments) in entities and segments | (21) | (0) | 14 | (8) | - | ||
| Current financial investments | 0 | 1 | 12 | 7 | |||
| Net cash flow from investing activities | (26) | (7) | 42 | (22) | - | (138) | |
| Net change of debt | 30 | 30 | (13) | ||||
| Net change in other financial items | (2) | (5) | (0) | - | |||
| Net dividend from other segments/ to shareholders | (31) | (59) | 9 | 61 | |||
| Net cash flow from financing activities | (3) | (34) | 9 | 48 | 84 | ||
| Net increase in cash and cash equivalents | (20) | (7) | 46 | 49 | 63 | ||
| Cash and cash equivalents at the beg.of the period | 165 | 169 | 42 | 17 | 87 | ||
| Cash and cash equivalents at the end of period | 146 | 162 | 88 | 66 | 150 |
WWH delivers services to WWLASA. These include primarily human resources, tax and treasury up to 30.06.2017, and in-house services such as canteen, post, switchboard, accounting and rent of office facilities. Generally, Shared Services are priced using a cost plus 5% margin calculation, in accordance with the principles set out in the OECD Transfer Pricing Guidelines and are delivered according to agreements that are renewed annually.
In addition Maritime Services have several transactions with associates. The
The demerger of Den Norske Amerikalinje AS (owning the 12% shareholding in Hyundai Glovis) from WWASA was effective on 8th June 2016.
The demerged entity named Treasure ASA was listed on the Oslo Stock Exchange on 8th June and is part of the Holding & Investment segment.
Note 15 - Contingencies
The size and global activities of the group dictate that companies in the group will be involved from time to time in disputes and legal actions.
However, the group is not aware of any financial risk associated with disputes
No material events occured between the balance sheet date and the date when the accounts were presented providing new information about conditions
contracts governing such transactions are based on commercial market terms.
All shareholders of WWASA received 1 share in Treasure ASA for every share held in WWASA.
and legal actions which are not largely covered through insurance arrangements. Nevertheless, any such disputes/actions which might exist are of such a nature that they will not significantly affect the group's financial position.
prevailing on the balance sheet date.
We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2016 have been prepared in accordance with IAS 34 – Interim Financial Reporting, and gives a true and fair view of the group's assets, liabilities, financial position and profit as a whole.
We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties transactions.
Lysaker, 9 August 2017 The board of directors of Wilh. Wilhelmsen Holding ASA
Diderik Schnitler Odd Rune Austgulen Irene Waage Basili Carl E. Steen Sign
Chair sign sign sign
Cathrine Løvenskiold Wilhelmsen Sign.
Thomas Wilhelmsen Group CEO sign
Wilh. Wilhelmsen Holding ASA PO Box 33 NO-1324 Lysaker, NORWAY Tel: +47 67 58 40 00 Email: [email protected] http://www.wilhelmsen.com/
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