Wilh. Wilhelmsen ASA

Earnings Release • Feb 9, 2017

Wilh. Wilhelmsen Holding ASA Fourth Quarter 2016

Thomas Wilhelmsen – group CEO and Christian Berg – group CFO

February 2017

• 1. Highlights for the fourth quarter and the full year 2016
• 1. Wilhelmsen group management structure
• 1. Prospects

4. Financials and business performance - Christian Berg, group CFO

Disclaimer: This presentation may contain forward-looking expectations which are subject to risk and uncertainties related to economic and market conditions in relevant markets, oil prices, currency exchange fluctuations etc. Wilh. Wilhelmsen Holding group undertake no liability and make no representation or warranty for the information and expectations given in the presentation.

Highlights for the quarter

Increase in total income and EBIT

Proposed merger approved

Sale of Callenberg and Safety completed

Board proposes first dividend of NOK 3.50 per share

Source: Wilh. Wilhelmsen

The year 2016

WWH mandate:

Professional development of group companies

• Develop and align group strategy to increase stakeholder value
• Enhance the Wilhelmsen footprint

Reshaping the parent company (WWH)

Future group management structure

WWH group prospects

Rate pressure, but soft volume recovery in shipping

Continued challenging maritime services market

Structural changes and organisational optimisation to improve operating margin and position the group for future growth

Wilh. Wilhelmsen Holding ASA Fourth Quarter 2016

Christian Berg – group CFO

February 2017

WWH group Improved return on capital employed

• Q4'14: Pension related accounting gain

9

Increased operating profit for the quarter

USD mill		WWASA group		Holding and WMS group Investments			Total
Quarter	Q4'16	Q3'16	Q4'16	Q3'16	Q4'16	Q3'16	Q4'16	Q3'16
Total income	450	418	233	225	33	18	710	656
Operating profit	4	32	59	19	23	11	86	62
Financial income/(expenses)	0	0	-15	-2	5	-1	-10	-3
Tax income/(expense)	-24	-6	-6	-4	1	2	-28	-9
Profit/(loss)	-20	26	38	13	28	12	47	51
Minority interests	-4	8	0	0	6	3	2	11
Profit/(loss) after minority
interests	-15	18	38	12	22	9	45	40
Equity majority	1 146	1 161	330	280	514	519	1 990	1 960
Equity minority interests	289	294	-1	0	214	207	502	501
Total Equity	1 435	1 455	329	280	728	726	2 492	2 461

• Increased operating profit in WWASA adjusted for one-off
• Stable underlying profit in WMS

10

• Operating profit up for Holding and Investments (Hyundai Glovis/NSG)

WWASA group Highlights for the quarter

Soft shipping market and margin pressure

Total income and underlying EBIT up

• Increased shipping volumes
• Positive contribution from logistics

Non-recurring expenses of USD 37 million

Source: Wilh. Wilhelmsen

Agreement with Wallenius signed 22 December 2016

• WWH shareholding 37.8% (160 million shares)
• Positive WWASA share price development

WMS group Highlights for the quarter

Continued challenging shipping and offshore markets

Total income up q-o-q due to sales gain

Stable underlying profit

Net gain from sale of Callenberg and safety business

*Main "one-offs":

Q4'16: Sales gain and transaction/restructuring cost (not included)

Q4'15: Pension related accounting gain (not included)

Q3'15: Impairment charge (not included)

Q4'14: Pension related accounting gain (not included)

Holding and Investments

Highlights for the quarter – Treasure ASA/Hyundai Glovis

Increased contribution from Hyundai Glovis

• Reported one quarter in arrears (Q3'16)

Treasure ASA's share price sensitive to development in Hyundai Glovis' share price

Holding and Investments

Highlights for the quarter – NorSea Group and financial investments

Increased contribution from NorSea Group

• Property sales gain, vessel write down
• Operating activities at low level
• Slowdown in offshore
• Traditionally weak season

Qube expansion

• 100% shareholding in AAT (ro-ro terminals)

Photo: Australien Amalgamated Terminals (AAT)

Increase operating profit for the year due to one-offs

USD mill	WWASA group		WMS group		Holding and Investments		Total
Quarter	FY16	FY15	FY16	FY15	FY16	FY15	FY16	FY15
Total income	1 832	2 124	928	1 010	106	64	2 843	3 173
Operating profit	191	67	108	65	67	32	367	165
Financial income/(expenses)	-37	-128	-28	3	4	9	-60	-117
Tax income/(expense)	-39	23	-15	-16	2	2	-53	8
Profit/(loss)	116	-38	65	52	73	43	254	57
Minority interests	35	-9	1	2	18	10	54	2
Profit/(loss) after minority interests	82	-29	64	50	55	33	201	54
Total equity	1 146	959	330	273	514	522	1 990	1 754
Minority	289	359	-1	0	214	92	502	452
Equity after minority interests	1 435	1 318	329	273	728	615	2 492	2 206

Reduced operating profit for the year when adjusted for one-offs

Year 2015	MUSD
Reported EBIT	165
Q1'15 WWASA HG share reduction gain	26
Q3'15 WWASA anti-trust provision	-200
Q3'15 WMS impairment charge	-50
Q4'15 WMS pension gain	4
Total material non-recurring items	-220
Adjusted EBIT	385

Year 2016	MUSD
Reported EBIT	367
Q1'16 WWASA logistics gain	80
Q4'16 WWASA anti-trust accrual	-31
Q4'16 WWASA restructuring cost	-6
Q4'16 WMS sales gain	60
Q4'16 WMS transaction cost	-8
Q4'16 WMS restructuring cost	-8
Total material non-recurring items	87
Adjusted EBIT	280

Increase equity ratio after sale of business units

Healthy maturity profile

Maturity profile

• WWH facilities maturing in 2018/19
• WMS facilities maturing in 2017/19
• WWHI facility maturing in 2018
• WWASA mixed maturity

18

WWH – liquidity development Q4'16

Debt repayment from sales proceeds, cash balance and operating income

WWH group Proposed increase in first dividend

• Proposed dividend of NOK 3.50 per share to be paid May 2016
• Proposed board authority to approve further dividend of up to maximum NOK 2.50 per share

Follow us on wilhelmsen.com | Twitter | Facebook | LinkedIn