Wallenius Wilhelmsen

Earnings Release • May 12, 2016

Wilh. Wilhelmsen ASA (WWASA): Results for the first quarter of 2016

Wilh. Wilhelmsen ASA (WWASA): Results for the first quarter of 2016

WWASA had a sharp decline in transported volumes in

the first quarter 2016, negatively affecting

underlying performance. However, a non-recurring gain

lifted WWASA's total income and operating profit and

more than outweighed the decline in contribution from

the shipping segment.

WWASA's total income for the first quarter was USD 608

million, up from USD 545 million in the fourth

quarter. The operating profit ended at USD 126

million, up from USD 66 million in the previous

quarter. Despite improved results compared with the

fourth quarter, the underlying performance was

weaker. Adjusted for non-recurring effects, the total

income declined 26% and the operating profit declined

22%.

"The volumes in the first quarter fell substantially

compared with the previous quarter. The reason was

partly seasonality. Transportation of cars fell

sharply, while high and heavy equipment improved

slightly from an already weak fourth quarter. We also

saw the effects for EUKOR following reduced volumes

according to the new Ocean Carrying Contract," says

Jan Evyin Wang, president and CEO of WWASA.

Contribution from the group's logistics activities

improved following the acquisition of Vehicle Services

Americas and CAT-WWL in South Africa (both previously

joint ventures). A non-recurring gain of USD 80

million related to the acquisitions and the sale of

Vehicle Services Europe positively impacted the result

from the logistics segment together with higher

contribution from Hyundai Glovis.

During the quarter, an extraordinary general meeting

approved the demerger of Den Norske Amerikalinje AS

(owns the Hyundai Glovis shareholding). The demerged

entity, to be named Treasure ASA, will be listed on

the Oslo Stock Exchange on or about 8 June 2016.

"The spin-off will visualise values for the WWASA-

shareholders, and consequently, the annual general

meeting, held 3 May 2016, decided not to pay dividend

the fiscal year 2015," says Wang.

Commenting on the prospects for WWASA, Mr Wang

states: "We anticipate volume growth to remain weak

over the next period, with continued pressure on

margins. The demerger of Den Norske Amerikalinje AS

will reduce the future contribution from the logistics

segment."