Wallenius Wilhelmsen

Investor Presentation • Nov 10, 2016

Wilh. Wilhelmsen ASA Third quarter 2016 >

Wilh. Wilhelmsen ASA 11th November 2016 Jan Eyvin Wang, President and CEO

> Agenda

• Macro developments
• Volume developments
• Outlook
• Merger between WW and OW

Disclaimer

This presentation contains forward-looking expectations which are subject to 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.

> Light vehicle sales in key markets – quarterly Soft quarter in key markets

Million units

Region	Q3'16	Q2'16	QoQ change	Q3'15	YoY change	2016 FY
N America	5.38	5.64	-5 %	5.29	2 %	20.90
Europe*	3.98	4.67	-15 %	3.80	5 %	17.00
Oceania	0.32	0.35	-9 %	0.32	0 %	1.30
BRICs	7.96	7.90	1 %	7.09	12 %	32.40
Brazil	0.52	0.49	6 %	0.62	-16 %	2.00
Russia	0.35	0.35	0 %	0.41	-15 %	1.40
India	0.85	0.78	9 %	0.76	12 %	3.40
China	6.24	6.28	-1 %	5.30	18 %	26.00

*) Excluding Russia and Turkey

> Quarterly light vehicle exports (units)

Weak Korean exports due to strike

> CAT resource industries sales (USD billion) Bottoming out?

> Group ocean volume development

Weaker volumes; seasonality and strikes in Korea Strike impact for EUKOR 70,000 units

1 000 CBM

> Group ocean cargo segment development

Both Auto and High & Heavy volumes down in the third quarter

• Continued soft fundamentals are exacerbated by political uncertainties
• Anti-trust provisions stands at USD 108 million
• IMO: 0.5 % global Sulphur content of fuel from 2020
• Creation of WWLASA on schedule for end Q1 approval

> Sulphur content in fuel – today

> Sulphur content in fuel – from 2020

> Sulphur content – Three ways to comply

• 1. Purchase Sulphur compliant fuel
• Marine Gas Oil or Ultra Low Sulphur Fuel Oil 0.1 %
• Low Sulphur Fuel Oil 0.5 %
• 1. Install Scrubber technology and operate High Sulphur Fuel Oil – 3.5 %
• Payback time 2-6 years
• 1. Install propulsion system based on LNG as fuel

Will become part of BAF recovery system

Highlights

• Enhancing our world-leading shipping and logistics platform
• Will be listed on Oslo Stock Exchange based on the Wilh. Wilhelmsen ASA structure
• Head office will be in Norway and Craig Jasienski will become CEO
• Balanced shareholder agreement

Rationale

• Sub-optimal governance model in old structure
• Current market conditions require an agile and efficient business model
• Synergy potential of USD 50-100m

Tentative timeline and key milestones

• Early / mid December: BoD resolution of merger plan and summons to EGM
• Mid / end January: IM published and EGM held
• Mid/end March: Creditor periods expire
• End March: Expected clearance of anti trust filings

Completion of merger end March/early April, subject to above

The board expects volume growth to remain weak going into 2017.

The current global political landscape adds further uncertainties.

Wilh. Wilhelmsen ASA Third quarter 2016 >

Wilh.Wilhelmsen ASA 11th November 2016 Benedicte B. Agerup, CFO

> WWASA Group – Key financials

Underlying income and profitability declined q-o-q

• Total income reported 49% q-o-q, 20% y-o-y
• EBIT reported 92% q-o-q
• Substantial positive non recurring item in Q2 2016 caused by demerger of NAL
• Ocean transported volumes fell by 9%
• Stable contribution from logistics segment q-o-q

> WWASA Group – Profit and Loss Q3 2016 Proportionate method

USD million	2016 Q3	2016 Q2	2016 YTD	2015 YTD	2015 Q3	2015 FY
Operating income	418	452	1 301	1 591	511	2 095
Gain on sale of assets		375	455	26		29
Share of profits from JV's and associates			13	35	12	36
Total income	418	827	1 769	1 652	522	2 159
EBITDA	69	455	685	155	(94)	262
Depreciation and impairments	(37)	(38)	(110)	(118)	(41)	(160)
EBIT	32	417	575	36	(134)	103
Financial income/(expense)	0	(21)	(36)	(115)	(73)	(128)
Profit/(loss) before tax	32	396	539	(78)	(207)	(25)
Net profit 1)	1 25	392	1 521	1 (86)	1 (213)	1 (4)
Earnings per share (USD)	0.11	1.78	2.37	-0.39	-0.97	-0.02

• 1) after minority interest
• Total income adjusted -8% q-o-q and 20% y-o-y
• Total EBIT adjusted -27% q-o-q and -53% y-o-y

> WWASA Shipping – Key financials

Lower transported volumes, partly seasonal

• Total income reported 9% q-o-q, 23% y-o-y
• EBIT reported 31% q-o-q
• Drop in ocean transported volumes, both auto and H/H
• Strike at manufacturing plants in Korea, affecting EUKOR volumes negatively
• Mitigating actions towards surplus tonnage situation
• Continued pressure on rates combined with unfavourable cargo and trade mix

> WWASA Shipping – EBIT margin Weak EBIT margin

• • Lower G&A cost base Suboptimal cargo and trade mix
• • Reduced OPEX Reduced volumes
• Rate pressure

> WWASA Logistics – Key financials Results on par q-o-q

• Total income reported stable q-o-q, 5% y-o-y
• EBIT reported stable q-o-q, 56% y-o-y. Hyundai / Glovis included in Q3 2015.
• Underlying result on par with previous quarter

• Restatement of pass-through revenue/cost within inland distribution

• Capex program finalized Q2 2016 with delivery of 2 post panamax vessels in April and June

• Normal dry-docking of MUSD 10-15 MUSD on an annual basis only planned capex

> WWASA Group – Financial income/(expense) *)

Decline in net financial expenses q-o-q

USD million		2016 Q3	2016 Q2	2015 Q3	2015 FY
Net financial items		5.2	5.0	(15.9)	(6.3)
Net interest expenses		(24.7)	(26.1)	(22.0)	(91.4)
Interest rate derivatives - unrealised		10.6	(1.1)	(15.3)	24.3
Net financial - currency		8.9	(3.2)	(15.2)	(48.7)
Net financial derivatives bunkers		(0.1)	4.3	(4.2)	(6.3)
Financial income/(expense)		0.0	(20.9)	(72.6)	(128.3)

*) Proportionate figures

• Unrealised gain on hedging contracts
• Positive return from investment portfolio, mainly as a result of narrowing credit spreads

> WWASA Group – Balance Sheet*)

Continued strong balance sheet

USD million	30.09.2016		31.12.2015
Assets
Non current assets	2 779	87 %	2 925	89 %
Current assets (excl liquid funds)	17	1 %	24	1 %
Liquid funds	412	13 %	349	11 %
Total assets	3 207	100 %	3 299	100 %
Equity & liabilities
Equity	1 455	45 %	1 655	50 %
Non current interest-bearing debt	1 259	39 %	1 135	34 %
Other non current liabilities	193	6 %	225	7 %
Current liabilities	301	9 %	285	9 %
Total equity and liabilities	3 207	100 %	3 299	100 %

*) Equity

> WWASA Group – interest bearing debt

Refinancing of balloons in 2018/2019

> WWASA Group – Liquidity development

Positive contribution from operations

USD million

> Thank you!

www.wilhelmsenasa.com