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Wallenius Wilhelmsen

Investor Presentation • Nov 11, 2014

3787_rns_2014-11-11_bb3de807-7b6c-4f56-ab3f-3aeb6ee9bd79.pdf

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Wilh. Wilhelmsen ASA > Third Quarter 2014

Jan Eyvin Wang – President and CEO

11 November 2014, Lysaker

>Disclaimer

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

>Volume highlightsUp from last year but down from pervious quarter

  • • Volumes down from a strong second quarter
  • •Third quarter seasonally weak
  • • North America down from a very strong second quarter
  • •Labour strikes in Korea

>Negative development in both cargo segments

High and Heavy

  • •Mining volumes to Oceania remained weak
  • • Agricultural season in Europe and North America ended

Auto

  • •Q3 seasonally weak quarter
  • •Labour strikes impacted Korean exports (30 000 units)
  • •Cars to Oceania stronger

WWL and EK Unprorated volumes (100%)

>Share of foundation trades remained stable at a high level

Shaping the maritime industry

>Group lifting capacity developmentRightsizing fleet for optimal performance

Total WW Group Tonnage – 100%, Owned and chartered vessels (>1yr) ** Vessels recycled at 25 years and all TC vessels redelivered at end of ordinary contract period

Shaping the maritime industry

6

>Weak European imports putting pressure on margins

>Light Vehicle Sales in Key Markets [Million Units]Mixed bag

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Source: GMI, WWL

Shaping the maritime industry

>Update - Anti trust investigation

•No further updates

>Short term outlook

  • -Prolonged labour strikes in South Korea
  • -Positive effect from reduced fuel price
  • Slow and steady growth in car sales with North America and China leading the way
  • European car sales continue their modest growth from low levels
  • Mining remains weak
  • Cargo and trade mix remains unfavourable
    • Shifting trade patterns putting pressure on margins

>Prospect

The board of WWASA anticipates the group's profitability to continue to be negatively affected by the challenging market sentiment.

Volumes transported deep sea and handled at the group's logistics facilities is expected to increase slightly in the fourth quarter compared with the previously quarter.

Short term, a decrease in the bunker price will have a positive effect on net bunker cost.

Wilh. Wilhelmsen ASA Financial presentation, third quarter 2014

13

Benedicte B. Agerup CFO

>WWASA Group - Key financials

  • •Total income and EBIT, adjusted for non recurring items, decreased by 6% and 19% respectively from Q2
  • •Operating profit for the quarter was positively impacted by non recurring items within the logistics segment

  • •Decline in ocean transported volumes, mainly caused by seasonality

  • 667 670 689 646 638 682 637 0100200300400500600700USD mill-4%Q1 Q2 Q3 Q4 82 81 82 67 6479540102030405060708090USD millQ1 Q3 Q4 -21%Q2Total income, adjusted EBIT, adjusted 20142013

  • •Fleet capacity stable compared with previous quarter

>WWASA Group - Profit & LossProportionate method

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1) after minority interest

•Financial statements 2013 has been restated, ref, proportionate note 2

>EBIT bridgeNet positive effect one offs MUSD 2.5

>WWASA Group - EBITDA adjusted for non-recurring items

Lower volumes and loss of POV-contract in ASL

>WWASA Shipping - Key financials

Continued pressure on margins

  • •Total income and EBIT, adjusted for non recurring items, decreased by 5% and 18% respectively from Q2
  • •8% decline in volumes q-o-q, coupled with suboptimal cargo and trade mix, reduced the operating profit
  • •Lower vessel utilization in main trades, mainly due to labour strikes in Korea and reduced volumes in WWL
  • • Cost efficiency and tonnage optimisation initiativescontinuing

>WWASA Shipping – EBIT margin

Challenging market sentiment

  • •Reduced cargo volumes
  • •Suboptimal cargo and trade mix
  • •Pressure on rates

>WWASA Logistics - Key financials

Operating profit impacted by one offs

  • •Total income and EBIT, adjusted for non recurring items, were down 11% and 18% respectively q-o-q
  • •Lower earnings in ASL caused by loss of POV contract and increased contribution from Hyundai Glovis
  • • Non recurring gain in Hyundai Glovis of MUSD 12 more than outweighed impairment and restructuring costsin ASL of MUSD 9.5
  • •Slightly lower contribution from WWL q-o-q
  • •Market value of 12.5% ownership in Hyundai Glovis USD ~ 1,2 billion

>WWASA Group - Financial income (expense) – breakdownReduced financial expense q-o-q

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  • •Negative return of MUSD 1 on excess liquidity
  • •Stable net interest expenses on long term debt
  • •Unrealised gain on interest derivatives due to higher medium term USD interest rate

>WWASA Group - Balance sheetStrong financial flexibility

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Equity method

>WWASA committed CAPEX, including dry docking

4 new post panamax vessels on order

  • •Financing is secured for two of the four new post panamax vessels
  • •Delivery of the first post panamax vessel is expected late 2014

WWASA Group - Liquidity development

>Liquidity level on par with prevoius quarter

Equity method

>WWASA Group - Outstanding debtMaturity profile

•Repayment of MNOK 518 in bonds maturing November 2014 will be financed by existing liquidity

Equity method

>WWASA Group - Semi-annual dividend per share

Resolved dividend distribution of NOK 1.00 per share in 2. half 2014

•Dividend distribution NOK 1.00 per share, approximately MUSD 32, to be paid Q4 2014.

Shaping the maritime industry

>Thank you for your attention

For more information: www.wilhelmsenasa.com

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