Wallenius Wilhelmsen

Investor Presentation • Sep 19, 2017

WWL ASA Capital Markets Day

September 2017

Agenda

Words from the CEO – group strategic priorities

Landbased strategy

Environmental strategy and focus areas

H&H: "A break bulk deep dive"

Words from the CEO Group strategic priorities

President and CEO – Craig Jasienski

Backdrop: Improving market fundamentals

Backdrop: WWL ASA needs to embrace new trends…

Electrification Autonomy

Flexible manufacturing

Mobility models

New entrants

… and take necessary actions to position ourselves for future success

Be agile and adaptable Position ourselves for growth opportunities

New strategic direction defined for WWL ASA

Solidify position as the market leader in RoRo with unrivaled H&H and Breakbulk capabilities Substantially increase earnings for landbased by expanding the core and transforming to full life cycle logistics

Strive for lowest cost possible by utilizing scale, right-sizing offering and embracing digitalization Increase flexibility and scalability of cost-base by reducing asset ownership and increased outsourcing Leaner

Reduce environmental impact through continuous operational improvement and collaborative leadership initiatives Expand revenue streams arising from the need for sustainable solutions

Cost efficiency through relentless focus across five main areas

Landbased strategy

COO WWL Landbased – Raymond Fitzgerald

Agenda

WWL ASA Landbased at a glance

Ambition and strategy

WWL ASA LANDBASED AT A GLANCE

More than 13.5 million units handled annually in WWL's Landbased network, across all products

OUR PRODUCTS & SERVICES

Landbased Services portfolio enabling customers to reduce costs and increase efficiencies in their outbound logistics

1) Primarily procurement model

A global network of Landbased Services well positioned for future growth

The last 10+ years has been an exiting journey

Early 1990s Southampton and Port Huemne	2005 DAS acquired from Nissan North America (known as VSA)	2009 Castor Green Terminal – our zero emission vision for terminal and processing services	2010/11 EPC 's in Panama, Galveston and Dubai	2016 VSA and CAT-WWL 100% takeover Landbased business reaches USD 0.7 bn revenues
- 2005: Defensive strategy	2005 – 2013: From lines to Logistics			2013 – The growth engine
"2000" Zeebrugge in 1999 Baltimore (2001) Kotka (2003)	2006 A strategy shift towards fully integrated logistics services from factory to dealer	2009 Pyoengteak terminal in Korea & Investments in two Chinese terminals		2014 MIRRAT terminal concession won

The strong land based performance continues…

Financial performance: Revenue and EBITDA USD million

Profitability varies between the different services

Ambition and strategy

"WWL ASA Landbased ambition is to significantly grow earnings by expanding the core and transforming to full life cycle logistics"

WWL ASA Landbased ambition is to significantly grow earnings by expanding the core and transforming to full life cycle logistics

PROTECT THE CORE

A

"Protect and grow existing book of business and product offerings with traditional and nontraditional customers"

NETWORK EXPANSION AND M&A

B

"Develop and expand our network of marine terminals and technical services sites worldwide through M&A, partnerships and entry into new verticals"

TRANSFORMATION

C

"Adapt to and exploit opportunities related to new technologies including automation, electrification, ride- and car-sharing and fleet management"

INTELLIGENT LOGISTICS

D

"Develop and deploy tools and capabilities to help customers manage their business better, faster, smarter, and cheaper"

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Protecting the core is key to maintain competitiveness and position ourselves for growth

	Contract Renewals	Share conquest from competition	New BD from traditional customers	New BD from non traditional customers	Procurement Services
Why?	Critical to lock in customers in order to protect market share, especially in markets with relatively strong rate development	Look to leverage brand and/or cost basis to target market share gains in key areas	Expand scope of services for traditional customer base	Identify other industries or markets that could be serviced by the Logistics group	Leverage scale and volume to create efficiencies in the business and reduce costs
Where are we going?	• Create increased stickiness with key strategic customers through service and systems offerings	• Develop emerging market strategy to gain market share through competition, partnership or M&A • Relentless cost focus	• Target Logistics 2.0 opportunities for traditional OEM's	• Target partnerships with key customers that will drive Logistics 2.0 development • EV assembly and distribution	• Leverage the scope and scale of logistics procurement services we provide to OEMs • Expand on successful opportunities to emerging markets

A

B

Network expansion and M&A will be ramped up to meet aggressive growth targets

	Marine terminal expansion	E-Service inland terminals	Organic growth TS	Acquisitions & Partnerships	New verticals
Why?	Expand footprint globally in the area of Marine terminals	Expand services and establish footprint in and around inland terminals	Expand offerings and market share in key geographies with low penetration	Look for acquisition and partnership opportunities in key locations and verticals	Identify entirely new areas of service offerings to complement the organic growth initiatives
Where are we going?	• Pursue strategic opportunities in key markets through partnership or investment	• Inland terminals as hub for new services and segment offering	• Leverage global talent and service offerings across the business building on brand strength, quality and efficiencies	• Pursue growth through selective acquisitions • Pursue growth through partnerships and joint ventures	• Continue to identify new verticals and a strategy to monetize these with existing or new customers

WWL Landbased will transform its service offering from factory to end of life cycle logistics for vehicles and heavy equipment

	Diverse Mobility	Fleet Management	Autonomous Vehicles	Electrification	After-sales services
Why?	Share of ride- and car sharing expected to increase drastically going forward	New entrant technology driven companies will seek to outsource logistics services	Capitalize on evolution of autonomous vehicle from level 3 to level 5 (engage with key players at an early stage)	Growing share of global fleet of vehicles with electrical engine	Large potential to move into the after-sales stage of a vehicles lifecycle period
Where are we going?	• Logistics services for users/ owners of ride sharing and/ or car pooling vehicles	• Logistics management, homologation and refurbishment services to fleet owners in select metropolitan areas	• Maintenance, technical services, fleet management and "last mile" logistics services for this next decade technology	• Global leader in Logistics services for electrical vehicles • Service offering for electrical cars to range from factory to end-of life	• Exclusive B2B focus • Offer logistics, technical services, and optimization services to dealers

D

Move into intelligent logistics will enable transformation

	Digitalization	GEO fencing	Visibility	Network optimization	Dynamic routing, telematics and AI
Why?	Digital as a differentiator is becoming increasingly important in the Logistics industry, and WWL is lagging behind	Prerequisite for accuracy of visibility tools. Enabler of inventory management and SCM optimization	Allow for visibility throughout supply chain and increases customer stickiness and regarded as a "must-have" by key customers	Advanced analytics and network optimization can yield significant value creation for our customers	Closely monitor machine learning and other technological development for logistics application potential
Where are we going?	• WWL seen as technological leader in RoRo logistics space • Technology enables WWL to be industry cost-leader	• GEO fencing technology available at all WWL Landbased sites	• Recognized by customers as industry leader • Visibility tool enables broadening of service scope and increases customer stickiness	• Network optimization as integral part of all commercial bidding processes • Network optimization as value offering to select clients	• WWL team well familiar with developments within advanced technologies directly affecting current or future scope of business

Environmental strategy and focus areas

VP, Head of Corp Com and CSR – Anna Larson

Content

Regulatory outlook and trends

Environmental strategy

Environmental focus areas

Regulatory pipeline and environmental trends

• EU mandatory CO2 reporting in 2018
• IMO mandatory CO2 reporting in 2019 Regulatory Pipeline
• Global sulphur cap change in 2020
• Ballast water management systems by 2024
• Shore power requirements in California
• Enviro trends
• Investor demand for environmental transparency
• Environmental progress expected by stakeholders
• Minimum environmental requirements of customers rising

Industry's environmental impact is starting to be matched by the environment's industry impact

WWL believes in taking a sustainable approach

Environmental Strategy: Lean:Green

• Vision
• Sustainability will be a driver of our business development and growth
• Our logistics services can be provided with zero emissions by 2050
• Strategy

Approach

• Striving for what is both economic and sustainable will produce the best longterm results for people, profits and the planet
• 1. Drive progress through initiatives that are both lean and green
• 1. Focus on high impact changes, for both people and the environment
• 3. Engage in regulatory process; push for environmentally sound global outcomes
• 4. Invest in and support 'Lean:Green' innovation; partner for sustainable solutions
• 1. Embrace transparency; be visible and be credible
• 1. Seek to create commercial value from sustainable solutions

Global Sulphur Cap 2020 in brief

Why: Sulphur emissions harmful to health and environment

What: Sulphur (S) content reduction , 3.5% 0.5%

When: Effective from Jan 1st 2020

Who: All vessels, all the time and everywhere

1 BAF clauses include coverage for sulphur

4 Stream Approach for compliance

• Major considerations:

How will it be affected future by regulatory change?

What will it cost in the short, medium and long term?

Will availability be sufficient when and

where needed?

• Proactive initiative to find the right solutions for our specific fleet needs

• Leveraged partnerships and experience from years of low S operation

• No 'silver bullet' solution for our fleet; needs vary by vessel age, design

• Choices will be reviewed when other energy sources become viable

Sulphur 2020: full organisational focus

CO 2 & Shipping: context

• Regulation Background
• If shipping were a nation it would rank 7 th in global CO² emissions

• Power and range demands, mean no substitutes for fossil fuel … yet

• Design efficiency standards, 1st transport segment with global requirements

• Mandatory CO² reporting schemes from EU (2018) and IMO (2019)
• Precursor to regulatory initiative for operational CO² measures
• Any resultant regulation unlikely to take effect within 8-10 years

CO2– progress metrics & targets

• Most of all, market fluctuations drive short term CO² results
• Short term CO2 targets does not make sense
• Annual CO² emission caps require fossil fuel alternatives
• Cargo will still move; no environmental win
• Solution

WWL's Target

• Target longer term fleet carbon intensity – 'CO² per tonne kilometre'
• Evens out market cycles
• Focussing on CO2 reduces all emissions to air
• Cut carbon intensity 11% by 2020 relative to 2016
• 32.1 28.5g CO² / tkm

Tackling CO² - Short to medium term approach

Condition Monitoring Ensures optimal machinery efficiency, helps avoid breakdown

Weather Routing Continuous computation of the most efficient route

Bio-fouling measures In-water hull cleaning or cleaning and new antifouling coating in DD

Bulbous bow refit Efficiency gain if normal sailing speed changes from design speed

Fleet renewal Old, less efficient vessels replaced by new high performing tonnage

Operational / OPEX Technical / CAPEX

Tackling CO2 – Longer term approach

• Form partnerships to collaborate in evaluation and testing of more sustainable solutions
• LNG viability project with Shell
• Monitor technical advances that could help achieve vision of zero emissions logistics
• Hydrogen as a fuel?
• Cast a wide net for innovation
• Sponsor of www.oceanexchange.org
• Annual Orcelle Award

Ballast water management

• Ballast water for stability, manoeuvrability, trim and reducing hull stress
• Ballast water must be treated to mitigate invasive species transfer risk
• All vessels will have ballast treatment systems installed by 2024
• Installation will occur as per pre-existing dry dock schedule
• Systems will be US Coast Guard Type Approved to avoid operational constraints
• Anticipated CAPEX of approx. 500kUSD per vessel with >> annual OPEX

High and Heavy: A Breakbulk deep dive

COO WWL Ocean – Michael Hynekamp

VP, Head of breakbulk and Marketing - Kibo Bodogaard

Agenda

The High and Heavy segments

Equipment and capabilities

The market and our position

The High and Heavy segments

The High and Heavy segment is more than mining, construction and agricultural equipment…

Mining, construction and agricultural equipment Buses and trucks Breakbulk

~7% ~68 % ~25 %

Breakbulk is really big cargo…

It's really wide cargo…

It's really long cargo…

It's really complex cargo…

And it's really heavy cargo

We even transported the glass for Apple's new building

So that when the vessel loaded it is much more than cars and the traditional high and heavy cargo

In WWL ASA we categorize Break bulk into 6 main segments

Machinery and machine tools Oil and gas Rail

Aviation Boats and yachts Power equipment

Equipment and capabilities

We have the equipment and vessels needed

With the world's most breakbulk-capable RoRo fleet and specialized equipment, even experienced logisticians may be surprised by the cargo we can carry.

WWL Cargo Equipment – a full spectrum of options for heavy cargo

Max. Cargo Weight (tonnes)

Roll trailers

• The workhorse of our equipment fleet, roll trailers have been developed for cargo up to 140 tonnes.
• Roll trailers are simply towed on and off the vessel. WWL also offers a wide range of specialised low profile and railed roll trailers.
• Typical cargo types: All kinds of breakbulk from machine tools to crane counterweights.
• More than 4000 rolltrailers globally

< 140 t Cargo length < 28 m Equipment length 20' -80' feet (6 -24 m)

Cargo weight

Equipment width 2.5 m

Equipment height 0.44 -1.1 m

Multi -Purpose Bogie (MPB)

• MPBs are especially suitable for long, narrow cargo up to 140 tonnes and are typically used in pairs.
• Depending on the cargo, they can be fitted with rails or connected together to create a lighter duty version of a Samson trailer.
• Typical cargo types: Rail cars, fabricated beams, compact generators and transformers.
• Can handle cargo of significant length

Cargo weight < 140 t per set Cargo length 6-40 m Equipment length 3 m/platform

Equipment width 2.28 m

Equipment height 0.94 -1.1 m

Samson heavy lift trailer

• An original WWL design ideal for breakbulk up to 220 tonnes.
• They are available in 8, 12 and 16 m variations, ensuring there's always a perfect fit for your needs.
• Typical cargo types: Transformers, generators and turbine rotors.

Cargo weight < 220 t Cargo length 6-18 m Equipment length

Equipment width 3 m

Equipment height 1.1 m

8-16 m

Jack-up trailer with blocks and beams

• Jack-up trailers are used to handle RoRo
• Cargo of up to 400 tonnes and are configured to suit the cargo being shipped.
• The unit is stowed on blocks and beams during terminal storage and onboard the vessel.
• Typical cargo types: Transformers, generators, boilers, tunnel boring machines and hydraulic press machines.

WWL has a great history in delivering exceptional cargo quality and ultimately giving our customers peace of mind

• WWL has always been a pioneer in vessel design and equipment development for industrial products
• No other carrier has moved a larger variety of breakbulk cargo to more locations for longer
• WWL offers unmatched in-house technical competence
• Project engineering
• Cargo equipment development & innovation
• Vessel design
• Strong and long lasting relationship with stevedores and terminal operators around the globe to ensure smooth operations
• Unique track record of innovative equipment solutions for ever changing logistical challenges

The market and our position

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The market is big!! We are looking for only a small slice of the pie

We compete with multiple other shipping segments

• Tonnage challenge
• Several LoLo lines are struggling

• Mergers and partnerships are a key trend

• Tonnage challenge

• Flat racks/ low box rates
• Low rates and strong frequency is their main strength
• Not ideal for BB cargo

LoLo carriers Containers carriers Bulk carriers (open hatch)

• Tonnage challenge
• Now looking beyond the traditional bulk segment
• Very low rates for large quantities in one go are offered due to low TC costs

Our current value proposition in the breakbulk market is strong

Our value proposition is built around four main pillars

The WWL value proposition

Thank you