Wallenius Wilhelmsen

Earnings Release • May 7, 2015

Wilh. Wilhelmsen ASA (WWASA): Results for the first quarter of 2015

Wilh. Wilhelmsen ASA (WWASA): Results for the first quarter of 2015

(Lysaker, 7 May 2015) Wilh. Wilhelmsen ASA (WWASA)

delivered higher operating profit in the first

quarter. Despite a seasonal decline in transported

volumes, improved cargo and trade mix combined with

cost reductions and a gain from sale of shares

contributed to improved earnings.

The total income for WWASA totalled USD 609 million

for the first quarter with the operating profit

ending at USD 98 million. With a net financial

expense of USD 46 million and a tax income of USD 5

million, the group delivered a net profit after tax

and minority interests amounting to USD 56 million.

Earnings per share was USD 0.26, on par with the

fourth quarter.

Commenting on the topline development, Mr Jan Eyvin

Wang, president and CEO of WWASA says: "The slight

reduction in total income compared with the previous

quarter was mainly related to a seasonal decline in

shipped auto volumes and lower bunker compensation

from customers. Auto volumes declined in all trades,

except for the Asia to Europe trade, while high and

heavy volumes increased in all main trades. The

cargo- and trade composition had a positive impact

on our profitability."

The underlying activity level and contribution from

the logistics segment were on par with the fourth

quarter. "Terminals, inland distribution and supply

chain delivered results are on par with the previous

quarter, while lower results in Hyundai Glovis

offset increased contribution from technical service

facilities," says Wang.

Compared with the fourth quarter, the group's

operating profit increased 28%. "Reduced

administrative costs, lower voyage expenses and

improved operational efficiencies lifted our

operating profit in the first quarter," says

Wang. "The group's total income and operating

profit were also positively affected by a non-

recurring gain of USD 26 million stemming from the

reduction from 12.5% to 12% ownership in Hyundai

Glovis."

WWASA's annual general meeting held on 23 April 2015

resolved to pay a dividend of NOK 1 per share,

totalling NOK 220 million. The share traded ex

dividend on 24 April and the dividend is expected to

be paid to shareholders on 7 May. The board also

received an authorisation from the annual general

meeting to pay additional dividend limited up to NOK

1.25 per share. The authorisation is valid until the

annual general meeting in 2016, although not longer

than 30 June 2016.

The forecasted growth for light vehicle sales is

modest for 2015, while the demand for high and heavy

equipment is expected to stay in line with 2014.

Based on the market outlook, the board of WWASA

expects higher auto volumes in the second quarter,

while high and heavy volumes are expected to remain

flat. Logistics activities are anticipated to be on

par with the first quarter.