Wallenius Wilhelmsen

Investor Presentation • Nov 6, 2018

Digitalization and opportunities for Wallenius Wilhelmsen

Michael Hynekamp EVP and COO WW Ocean

Ari Marjamaa General Manager

Diana Bruel CEO Syngin Technology

7 November 2018

Digitalisation is about moving from data to wisdom

The supply chain is data rich, but still information poor, large upside potential, but depends on the digitalization of the supply chain

Large number of potential data sources throughout the supply chain, but too little of it is used today

Digitalization happens at multiple layers in the organisation

Today, the follow-up of our \$80m "factories" are limited to daily emails…

OUR FACTORIES: \$80M VESSELS WITH \$5M ANNUAL FUEL SPEND…

Vessel \$80m value	Operating Global range
Cargo \$300m value	Fuel cost \$5m per year

…ARE BEING FOLLOWED-UP THROUGH DAILY EMAILS

Sea Passage (Noon) Email Reports $\equiv$ ≮ Previous DOL Particulars 灬
								New Data	Last Data		Validation Message
							Vessel	Thalatta	Thalatta
Date & Time (UTC) 8	2018-09-03 19:00	2018-09-02 19:00	yyyy-MM-dd HH:mm
Date & Time (LT) 6	2018-09-03 12:00	2018-09-02 12:00
Charterer	WWL	WWL
Voyage No O	UD830	UD830	XXYYY or XXXYYY or X.YY
Departure Port	[USTIW] Tacoma
Arrival Port	[JPHIC] Hitachinaka
Name of Persons Approving Data	First Name	Last Name
Master	Ravmond	Lobo
Chief Engineer	Porus	Variava
Time since Last Report:	24,00	hours
Local Time Difference	$-07:00$	hours

Measurement of energy efficiency and other KPIs are limited to daily emails

• Crew reading instrument values and inserting values manually

Emails are processed through various systems, making data inaccessible

• Follow-up is tedious and hard to carry out in a consistent manner

…while on land, factories are monitored through thousands of sensors made available real-time in one single place

Real-time access to thousands of sensors

Transparent information for all parties

Focus on exceptions

Improved analysis and decision making

Real time data is now streaming from the vessels, allowing for a much better understanding of actual performance

Improved data analytics allows for better optimisation of assets and operations

Digital support centre as a physical location, but also available where required

• Current data capture is first step towards realizing Digital Control Room

• The data is now live and accessible through one common data platform

• This enables us to generate analytics, to gain more insight in our operation and exploit opportunities to improve
• We will mainly focus on areas with cost saving potential, such as energy efficiency, but these are all building blocks in our desired end state – the digital control room

Digitalization happens at multiple layers in the organisation

Area of impact Generic examples of impact		Examples of current efforts
Digital Product / Service	○ Applications, software solutions ○ Services delivered through APIs, eg weather routing ○ Services delivered, eg Uber Freight
Digital Business Models	○ X as a service ○ Transaction/consumption based vs fixed fee
Digital Customer Relationship	○ Digital distribution models, eg Amazon ○ Customer interaction portals ○ Customer analytics, eg targeted marketing
Digital Processes	○ Automation through systems ○ Robotics process automation ○ Additive manufacturing
Data analytics	○ Data insight, data driven decisions ○ Machine learning / AI
Data platforms	○ Cloud based storage and computation ○ Scalability
Data capture & generation	○ IOT & sensors ○ Communication

WW Solutions ambition is to significantly grow earnings by transforming to full life cycle logistics, partly enabled by digitalization

Syngin Technology marks our first entry intro Full Life Cycle Logistics

"The future of logistics lies in combining digital services, physical assets and a deep understanding of logistics flows. With Syngin we boost our digital capabilities, setting us up to better support the changes we see in our customers' needs for the future"

Craig Jasienski, President and CEO Wallenius Wilhelmsen group

"I am thrilled about the acquisition of Syngin. In late 2017 we announced an ambitious strategy to offer "Full Life Cycle Logistics" services and now six months in we have made our first acquisition in this space. The joint capabilities of WW Solutions and Syngin represent a unique opportunity for growth both before and after the vehicle's first point of sale"

Ray Fitzgerald, EVP and COO of Wallenius Wilhelmsen Solutions

Syngin Technology in brief

Syngin Technology is a leading provider of automated logistics solutions that leverages digital marketplaces to connect fleet owners and vehicle remarketers with transportation providers, repair centers and auction houses

Syngin Technology provides complete inventory management, transportation, and remarketing solutions to ensure a timely and cost-effective movement from the time a vehicle is located until it's sold

What we do: Innovate by resolving Client Needs, and empowering vendor networks

Syngin's Unique Selling Proposition is creating value and competitive advantage through Operator enabled Solutions

We enable operators through marketplaces, which we integrate into our clients' workflow and opens doors into the workflow of entirely new ecosystems

Core Business Process

How we do it: Connectivity between data, funds, vendors, clients and their collective work processes

mngt Syngin Technology's trademark is its Unique Workflow

• Real-time, non-linear, multidimensional integration of applications
• Clients, vendors and operational staff perspectives, roles and permissions
• Distinct workflows for assets, information, titles, and funds
• Web enabled cloud-based technology
• Unlimited scalability
• Integrates all supply chain elements and users

Syngin's opportunity and growth business model

Questions?