Wilh. Wilhelmsen ASA

Earnings Release • May 7, 2015

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

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

Lysaker, 7 May 2015) Despite a slight decrease in

total income driven by seasonally lower demand for

seaborne transportation, the strong USD and reduced

costs had a positive effect on WWH's operating

profit. An increase in the group's activity level is

expected for the second quarter.

WWH delivered a total income of USD 866 million for

the first quarter, a 3% decline from the previous

quarter. The operating profit ended at USD 123

million, a reduction from the previous quarter,

which was impacted by a material pension gain of 63

million. With a net financial expense of USD 35

million and a tax expense of USD 4 million, the

group delivered a net profit of USD 68 million,

equal to earnings per share of USD 1.46.

"2015 started on a positive note," stated Thomas

Wilhelmsen, group CEO at WWH, when presenting the

group's first quarter results. "The total income for

our ship operating entities reflected a seasonal

decline in auto volumes and lower bunker

compensation from customers. The effect on the top

line was partly offset by a USD 26 million gain

related to Wilh. Wilhelmsen ASA's share reduction in

Hyundai Glovis."

The underlying activity level and contribution from

the group's logistics activities were on par with

the previous quarter.

Commenting on the development in the maritime

service segment, Mr Wilhelmsen said: "Income for the

segments continued to be affected by a challenging

market. The income from ships service improved

slightly, ship management delivered a stable top

line, while the technical services stream saw a drop

in total income."

The increase in operating profit for the WWH group

in the first quarter was mainly driven by a strong

USD. "In addition to a favourable currency

development, reduced costs contributed to a strong

rebound in the group's profit compared with the

fourth quarter," said Wilhelmsen.

Despite a challenging oil and offshore market, the

NorSea Group (owned 40% by WWH) saw a stable

development in the first 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 dividend is paid to

shareholders on 7 May. The board also received an

authorisation to pay additional dividend limited up

to NOK 3 per share. The authorisation is valid until

the annual general meeting in 2016, although not

longer than 30 June 2016.

"Based on the anticipated market outlook, we expect

higher auto volumes in the second quarter, while

high and heavy volumes are expected to stay flat.

Although the current market is challenging, a

gradual increase in world trade and operating fleet,

a healthy order reserve and a strong USD will have a

positive effect on future earnings for our maritime

services segment," said Wilhelmsen when finishing

the presentation.

The board concluded that: "We expect seasonality to

support an uplift in activity level in the second

quarter."