Wilh. Wilhelmsen ASA

Earnings Release • Aug 6, 2015

Wilh. Wilhelmsen Holding ASA (WWH): Results for the second quarter 2015

Wilh. Wilhelmsen Holding ASA (WWH): Results for the second quarter 2015

(Lysaker, 6 August 2015) Wilh. Wilhelmsen Holding

ASA group (WWH) reported a flat top line in the

second quarter of 2015, mainly influenced by reduced

income from Wilh. Wilhelmsen ASA (WWASA) and

Wilhelmsen Maritime Services (WMS). Seasonality and

a continued strong USD positively impacted the

underlying operating profit.

WWH delivered a total income of USD 854 million,

representing 1% decline from the previous quarter.

The operating profit ended at USD 103 million, a

reduction from the first quarter, which was

positively impacted by a non -recurring gain related

to WWASA's share reduction in Hyundai Glovis. When

excluding the USD 26 million sales gain, the

operating profit increased by 7%. With a net

financial expense of USD 8 million and a tax expense

of USD 9 million, the group delivered a net profit

of USD 66 million, equal to earnings per share of

USD 1.43.

"The group's performance in second quarter was

stable," stated Thomas Wilhelmsen, group CEO at WWH,

when comparing with the first quarter of 2015 and

the same period last year. "The total income for our

ship operating entities was positively impacted by a

seasonal increase in auto volumes. The effect was

partly offset by increased net bunker costs and off-

hire, which had a negative impact on earnings.

Improved results in Hyundai Glovis increased the

contribution from the logistics segment. Wallenius

Wilhelmsen Logistics' activity level was on par with

the previous quarter, with a slightly higher

contribution from terminal operations and technical

services following somewhat stronger volumes.

Commenting on the development in the maritime

service segment, Mr Wilhelmsen said: "Total income

for the segment was on par with the previous

quarter, despite a challenging market. Technical

solutions grew its top line, supported by most of

the activities outside offshore, while ships service

and ship management reported reduced total income."

The increase in operating profit was mainly driven

by a strong USD. "In addition to a favourable

currency development, seasonality contributed to the

group's stable profit development," said Wilhelmsen.

Despite a challenging oil and offshore market, the

NorSea Group (owned 40% by WWH) enjoyed a seasonal

pick up in its supply base activity in the second

quarter.

WWH's annual general meeting held on 23 April 2015

resolved to pay a dividend of NOK 3 per share,

totalling NOK 139 million. The board also received

an authorisation to pay additional dividend limited

up to NOK 3 per share.

"Based on the anticipated market outlook, we expect

seasonally lower auto volumes and continued soft

high and heavy volumes in the second half of 2015.

Although the current market is still challenging,

the underlying positive trend remains. Over the last

12 months the strong USD has had a positive

influence on the group's operating profit, in

particular the maritime service segment. This effect

is likely to subside going forward," said

Wilhelmsen.

The board concluded that: "We expect a stable

activity level for the group, but with a seasonal

slowdown in the second half of 2015."