Wallenius Wilhelmsen

Investor Presentation • May 7, 2019

Q1 2019 Quarterly presentation

Highlights first quarter 2019

EBITDA of USD 218 million, a significant improvement y-o-y

Ocean results positively impacted by performance improvement initiatives, lower net bunker cost and project cargo in the Atlantic

Underlying flat ocean volume development y-o-y

The landbased segment delivered stable performance

About USD 60 million of the USD 100 million performance improvement target confirmed

Agenda

Business update

Financial performance

Market outlook

Outlook and Q&A

Business update

by Craig Jasienski

Underlying flat volume development in the quarter

• 1) Prorated volume (WW Ocean, EUKOR, ARC and Armacup)
• 2) H&H share calculated based on unprorated volumes

siness Update

Mixed development for the foundation trades

Note: Prorated volumes on operational trade basis in CBM

6 1) Including Cape sailings (South Africa). Volumes in first quarter benefited from volumes pushed over from the previous quarter due to Oceania sailings being delayed as a result of biosecurity challenges (~200k CBM)

Fleet capacity tightly managed

- voyage rationalization efforts helped to minimize use of tonnage

• Owned Chartered Short Term T/C In/Out Wallenius Wilhelmsen controlled a fleet of 123 vessels at the start of the quarter and 127 vessels at the end;
  • Fleet capacity managed tightly with position swaps and leveraging of the short-term charter market
  • Some operational delays early in the quarter caused by biosecurity challenges
  • Flexibility to redeliver up to 12 vessels by 2020 (excluding vessels on short charter)
  • Delivery of vessel number two of four in the Post-Panamax newbuilding program on 11 April 2019
  • Remaining two vessels are under construction, next vessel expected delivery Q4 and last one due first half of 2020

7

Some contractual wins in early 2019

- majority of volume yet to be renewed

Rate impact (USD millions)

Positive development for net freight/CBM

- some effects unlikely to continue in the following quarters

Net freight / CBM development1) Comments

• Net freight/CBM increased 7% y-o-y and q-o-q mainly due to a favourable cargo mix;
  • Atlantic strong project cargo shipments
  • Asia-North America largest underlying volume growth
  • Oceania good volumes in the quarter after some backlog from 2018 biosecurity challenges
  • H&H improved portion due lower auto volumes
• Contractual improvements in the Atlantic, through non-renewal of relatively low rated cargo
• Negative impact on the freight index from contract renewals in 2018 of about USD 2 - 3 million y-o-y and q-o-q and will carry forward

100

Performance improvement program off to a good start

- remaining improvements carry a longer lead time

Confirmed and realized improvements USD million in annualized effect Comments

• USD 60 million of the USD 100 million performance improvement program confirmed at end of Q1, up from USD 55 million in previous quarter
• The additional USD 5 million come mainly from;
  • Voyage optimization Asia-Europe & Atlantic
  • More efficient hull cleaning across the board
• Annualized run rate of realized improvements also reached USD 60 million, up from about USD 20 million in the previous quarter
• Remaining initiatives require longer lead-time;
  • Centralised voyage management
  • Further voyage optimisation

Financial performance

by Rebekka Herlofsen

Consolidated results – first quarter 2019

	Q1 2019	Q4 2018	Q1 2018
Total income	1 018	1 022	968
Operating expenses	(799)	(854)	(843)
EBITDA*	218	168	125
EBITDA adjusted	218	168	128
Depreciation	(123)	(88)	(85)
Other gain/losses	0	36	(40)
EBIT	95	116	0
Net financial items	(70)	(82)	(5)
Profit before tax	25	34	(5)
Tax income/(expense)	(3)	11	(25)
Profit for the period	22	45	(30)
EPS	0.05	0.10	(0.07)
*IFRS 16 effect on EBITDA	42	n/a	n/a

Comments

• Total income was USD 1 018 million in the first quarter, up 5% y-o-y due to increased revenues for the ocean segment
• EBITDA of USD 218 million, up USD 93 million y-o-y of which USD 42 million was the impact of IFRS 16 new accounting rules
• Underlying improved performance driven by the ocean segment
• Net financial items of USD 70 million in the quarter
  • Interest expense was USD 53 million, up 15% as a result of implementation of IFRS 16 (USD 10 million)
  • Net financial expenses negatively impacted by USD 22 million from unrealised interest rate derivates
• Tax expense of USD 3 million in the first quarter

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IFRS 16 – Impact for Wallenius Wilhelmsen

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159

190

Ocean segment – first quarter 2019

719 798 766 832 750 ^{842 822 807 812} Q1'17Q2'17Q3'17Q4'17Q1'18Q2'18Q3'18Q4'18Q1'19 +8% +1% 123 17 152 Q1'18 2 Q2'17 8 Q3'17 3 Q4'17 2 Q2'18 Q4'18 Q1'19 111 162 170 160 136 132 157 Q1'17 145 162 132 109 134 Q3'18 +71% +25% IFRS 16 effect Extraordinary items Total income • Total income was USD 812, up 8% y-o-y driven by higher Total income and EBITDA ocean segment¹ USD million EBITDA

• net freight/CBM and fuel cost compensation from customers
• EBITDA of USD 190 million, an improvement of USD 81 million y-o-y of which USD 31 million in IFRS 16 effect
• Performance improvement driven by several factors:
  • Full realization of synergies and early wins on the performance improvement program (about USD 25 million in total)
  • Higher net freight/CBM due to more favourable cargo mix and strong project cargo in the Atlantic
  • Lower net bunker cost (about USD 10 million)
  • Favourable currency developments (about USD 10 million)
• Biosecurity challenges continued and impacted the results with about USD 5 million in the quarter
• EBITDA increased by USD 38 million q-o-q of which USD 31 million is explained by the IFRS 16 implementation

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11

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Landbased segment – first quarter 2019

Total income and EBITDA landbased segment USD million

• Total income in the first quarter was USD 232 million with all business segments delivering revenues in line with first quarter last year
• EBITDA for the first quarter ended at USD 33 million, up USD 13 million y-o-y of which USD 11 million in IFRS 16 effect
• The improvement was driven by stronger performance of Solutions Americas – H&H which benefitted from full realization of synergies combined with strong volumes and favourable customer and service mix
• Underlying development in other products was flat both y-o-y and q-o-q

Cash flow and liquidity development – first quarter 2019

Cash flow and liquidity development USD million

• CAPEX of about USD 9 million includes
  • Dry docking and newbuildings (USD 2 million)
  • Landbased maintenance and equipment (USD 6 million)
• Net financing of USD -11 million mainly relates to
  • Regular instalments of about USD 80 million
  • Refinancing of three vessels in EUKOR of about USD 126 million with net proceeds of USD 10 million
  • Utilisation of credit facilities of about USD 90 million
  • Payments on lease contracts classified as repayment of debt of about USD 30 million
• Other includes increased accounts receivable of about USD 55 million, reduced accounts payable by about USD 20 million and reduced inventory of about USD 30 million

Balance sheet review – first quarter 2019

• Total assets of USD 8.3 billion with equity ratio of 35.0%, down from 38.8% in the previous quarter due to implementation of IFRS 16
• Net interest bearing debt of USD 3.8 billion, of which reclassification of operational leases (IFRS 16 effect) represents USD 855 million
• Continued strong cash and liquidity position with USD 555 million in cash and about USD 280 million in undrawn credit facilities
• On 9 April 2019, remaining outstanding amounts under the NOK 800 million bond was repaid

Market outlook

by Craig Jasienski

Auto sales down 4.3% y-o-y

- driven by slow sales in all major markets

Global light vehicle (LV) sales per quarter1,2) Units

Regional LV sales per month1,2) Growth (y-o-y)

USA -3.0%

Sales continued down, however market size still solid in absolute terms

Western Europe -2.9%

Sales continued down; several OEMs continue WLTP struggles, uncertainty around Brexit

China -12.8%

China LV sales off to a weak start, softened consumer confidence and awaiting potential governmental stimulus

Auto exports down 1.1% y-o-y

Global LV export per quarter Units

Regional LV import per quarter Growth (y-o-y)

Market uncertainty has increased

- auto analysts remain positive about medium-term growth prospects

Global LV forecasts

Units and growth (y-o-y)

Several factors fuel uncertainty in short and medium term:

• Trade barriers continued risk with implications for both sales and sourcing shifts globally
• WLTP introduction Europe distortions on both supply and demand side (incl. imports), effects in Q2 and possibly longer
• Brexit continued uncertainty triggering temporary and permanent production shutdowns
• China continued softening driven by overall economy and high inventories, but expected stimulus packages to influence positively
• US Vehicle prices rising due increased finance cost, also high inventories
• Emerging markets continued risk with macro-economic instability in markets like Turkey and Argentina and geopolitical developments in the Middle East

Source: IHS Markit. Exports are sales based

High & heavy trade remained solid

- momentum keeps softening

22 Source: ¹ IHS Markit | World (major exporters) construction/rolling mining equipment and agriculture equipment exports (>20 kUSD ) (Units last 3 months y-o-y) ²Caterpillar | 3 month rolling retail sales (Units last 3 months y-o-y) ³Factset data and Analytics (25.04.19). | OEM Revenue Consensus Estimate (y-o-y). Construction: Volvo, Caterpillar, CNH, Komatsu, Hitachi, Terex. Mining: Sandvik, Caterpillar, Hitachi, Atlas Copco, Epiroc (>2018). Agriculture: AGCO, CNH, Deere. Sales in construction/agriculture/mining equipment divisions only.

Orderbook remained thin

Car Carrier Fleet Orderbook # vessels equal or above 4000 CEU 15 1 9 5 Order book 2019 2020 2021

• No new orders were confirmed in the quarter*
• One vessel was delivered, three vessels recycled in the quarter
• Current markets and earnings do not justify new ordering activity

• Deep-see shipments forecasted to increase with about 2% per year
• New regulation (IMO 2020) could create extra demand for tonnage
• Marginal net fleet growth (if any) expected for several years

Wallenius Wilhelmsen took delivery of MV Traviata on 11 April 2019

• A High Efficiency RoRo (HERO) class vessel with capacity of 8,000 CEU
• The design ensures efficient operations under a wide range of sea conditions, and reduces energy consumption by 15%, resulting in considerably lower emission levels compared to similar vessels in the global fleet
• MV Traviata is the second of a series of four Post-Panamax vessels, with the third vessel scheduled for delivery in Q4, and the fourth in early 2020

Outlook and Q&A

by Craig Jasienski

Outlook

Volume outlook remains uncertain – due to macro picture

Market rates remain at a low level – but tonnage balance gradually improving

Net freight/CBM and project cargo shipments – not expected to remain at first quarter levels

Solutions Americas – Auto (VSA) continued impacts by weaker US auto market, while other landbased business segments are expected to perform well

Performance improvement program – good progress will support profitability in 2019

Thank you!