Wallenius Wilhelmsen

Investor Presentation • Nov 10, 2020

Q3 2020 Quarterly presentation

Covid-19 – Staying true to our purpose and our values

OUR PRINCIPLES

• Take social responsibility for employees and community
• Be financially prudent for our shareholders
• Maintain operational stability for our customers
• Protect long-term operational capabilities to be ready to meet the future

Highlights third quarter 2020

• EBITDA of USD 152 million, up from USD 104 million adjusted EBITDA in Q2
• Volumes and revenue still impacted by the ongoing COVID-19 pandemic
• Early and broad actions have helped support earnings and cash position
• Ocean volume down 23% YoY, with auto volumes rebounding from Q2 lows
• Landbased revenue down 21% YoY, but EBITDA only down 5% YoY due to cost savings and efficiency gains
• USD 600 million in cash, up from USD 539 million in Q2, supported by measures taken, including deferred loan payments and bond issue in September

Agenda

Business update

Craig Jasienski CEO

Ocean volumes decline 23% YoY, up 33% QoQ

Strong rebound in un-prorated Auto volumes, increasing 80% QoQ

1) Total volume based on prorated volume (WW Ocean, EUKOR, ARC and Armacup), i.e. volumes are split between months based on the sailing period onboard the vessel

Volume development diverged between main trades

Note: Prorated volumes on operational trade basis in CBM

1) Including Cape sailings (South Africa)

Rate pressure increasing

Though few contract renewals in third quarter

Overview of 2020 contract renewals

Per cent.

Rate changes and impact from 2020 contract renewals

Annualised revenue impact (USDm)

Managing capacity

Exploiting short-term charter market to meet demand, vessels remain in cold lay-up for now

NEWBUILD DELIVERY

○ Tannhauser delivered on 10 September

RECYCLING

• 1 vessel recycled in Q2 and 1 in Q3
• 2 vessels to be recycled in Q4

COLD LAYUP

• Total 16 vessels in cold lay-up, incl. 15 vessels put in lay-up since May and 1 vessel that was in lay-up since last year
• Additional 5 vessels that were under evaluation will not go into cold lay-up

REDELIVERY

• 2020: 7 vessels redelivered, 4 extended
• 2021: 3 redelivery candidates
• 2022: 4 redelivery candidates

Fleet development¹

of vessels

Financial performance

Torbjørn Wist CFO

Financial highlights - Q3 2020

RESULTS (USDm)								CASH FLOW & BALANCE SHEET (USDm)			KEY FINANCIAL METRICS
	Total revenue				Adjusted EBITDA			Q2-20 Q3-20			ROCE (%)1
p u o r G	954	606	697	213	104	152	Operating cash flow	 229	145		2.5		-2.8 +5.2
											EPS (USD)
	Q3'19	Q2'20	Q3'20	Q3'19	Q2'20	Q3'20	Net CAPEX	 15	68		0.01		-0.07 +0.16
	773			188
n a e c O		495	545		104	129	Cash	 539	600		Equity ratio (%)
	Q3'19	Q2'20	Q3'20	Q3'19	Q2'20	Q3'20					34.0		-2.3
d e s a b d n a L			175 Q3'20		2 Q2'20	28 Q3'20	Equity	➔ 2 561	2 564				-0.4
	221			29							ND/EBITDA adj. (x)2
	Q3'19	126 Q2'20		Q3'19			Net debt	➔ 3 437	3 436		5.9		+1.5 +0.6

1) Return on capital employed adjusted: annualised EBIT adjusted divided by capital employed 2) Net interest bearing debt divided by last twelve months adjusted EBITDA

Group EBITDA 29% down YoY in line with lower volumes, recovering QoQ

USDm	Q3 2020	Q2 2020	% change QoQ	Q3 2019	% change YoY
Total revenue	697	606	15%	954	(27%)
Operating expenses	(545)	(564)	(3%)	(741)	(26%)
EBITDA	152	42	263%	213	(29%)
EBITDA adjusted	152	104	46%	213	(29%)
EBIT	40	(45)	n/a	94	(57%)
Financial income/(expense)	(36)	(30)	20%	(72)	(49%)
Tax income/(expense)	0	6	n/a	14	(98%)
Profit for the period	4	(69)	n/a	36	(88%)
EPS	0.01	(0.15)	n/a	0.08	(85%)

Ocean EBITDA down 31% YoY due to lower volumes

Up 23% QoQ as volumes recover from Q2 lows

Ocean – EBITDA (adjusted)¹

• Revenue

• Down 29% YoY due to lower volumes
• Up 10% QoQ as volumes recovered and mix normalised
• EBITDA
  • Down 31% YoY due to lower volumes and net freight per CBM
  • Partially offset by cost savings and lower net bunker cost

Landbased revenue down 21% YoY

EBITDA only 5% down due to cost savings and efficiency gains

• Down 21% YoY with lower volumes across all segments
• Up 39% QoQ
• EBITDA
  • Down 5% YoY, but up 10x QoQ
  • Supported by cost savings, efficiency gains and state support

Cash and undrawn credit facilities up USD 99m in Q3

Supported by free cash flow of USD 37m, deferred loan payments and recent bond issue

Cash

Stable net debt, equity ratio down to 34.0% due to increased assets

• Issued NOK 2.0bn (USD 220m) of 4-year senior unsecured bonds
• Net proceeds of about USD 150m
• Equity ratio down to 34.0% from 34.4% in Q2 as assets increased
• Net debt stable at USD 3.4 billion

Market update

Craig Jasienski CEO

Auto sales down 6.8% YoY

Up 31.7% QoQ as pent-up demand and incentives fuel sales

Global light vehicle (LV) sales per quarter1) Units

• Total light vehicle (LV) sales in the third quarter decreased 6.8% compared to the corresponding period last year and up 31.7% from the previous quarter as incentives and pent-up demand after the coronavirus fueled auto sales.

Global light vehicle (LV) export per quarter1) Units

• Total exports in the third quarter were down 13.9% compared to the corresponding period last year, up 33.8% from the previous quarter.

Deep sea share stabile despite significant sales drop in 2020

LV Mill units

Global LV markets update

LV Sales

IHS Markit assume 2020 global LV sales set at 73.7m for 2020, down 18%. with downgrades across all major regions, forecasts up from July which expected 70.1m, -22%

Supply

Temporary plant closures took place globally. Recovery on track however stop-start rhythm prevents efficiency, slow bands and tricky new health protocols

Deepsea trade ?

IHS Markit assume deepsea volume to see decline from 14.9m in 2019 to 11.8m in 2020, equal to a drop of 20%, however recover quicker than domestic produced volume

Demand

Uncertainty to how fast consumers will turn back to dealers, governmental stimulus and pent-up demand might contribute to rebound

Deepsea share

Solid LV sales and production rebound during Q3

Global LV sales and production quarterly walk, 2020 and 2021 figures compared to 2019

Global manufacturing activity continues to extend the path to recovery

Order data and broader activity measures keep pulling H&H trade volumes towards positive territory

Global trade and manufacturing activity Growth (YoY) and Indexed

Global trade and order levels Growth (YoY) and Indexed

Source: ¹ IHS Markit | PMI (diffusion index), business activity - direction of change compared to the previous month (50 = no change, >50 increasing activity, <50 decreasing activity). Cutoff: October 2020, ² IHS Markit | World (major exporters) construction & agriculture equipment exports (Avg. equipment value >20 kUSD ) (Units last 3 months, YoY), Cut-off: July 2020. U.S. Census | Manufacturers New Machinery Orders (Value USD last 3 months, YoY). Cutoff: September 2020 ³Coefficient of determination with indicated trade lag

High & Heavy markets climbing from mid-year troughs

Consensus embeds end-market growth from 1Q21, with export momentum buoyed by firming inventories and used equipment markets

22 Source: ¹ IHS Markit | World (major exporters) construction & rolling mining equipment and agriculture equipment exports (Avg. equipment value >20 kUSD ) (Units last 3 months YoY) (Rolling average units last 12 months), Deep Sea Trades= AS-EU, AS-NA, EU-AS, EU-NA, EU-OC, NA-AS, NA-EU, NA-OC. *Data cut-off: July 2020. August 2020 data limited to countries that have reported customs figures by 03.11.2020 ²Parker Bay | Large Mining Equipment Deliveries (Units last 3 months YoY) ³Caterpillar | 3 month rolling retail sales (Units last 3 months YoY) ⁴Tractor sales and registrations in key markets | 3 month rolling retail sales (Units last 3 months YoY), US Large Tractors (2WD 100+HP & 4WD), Australia Large tractor (100+HP), Brazil (All), UK (50+HP), Germany (70+KW) ⁵Factset (20.10.20) | OEM Revenue Consensus Estimate (YoY, CY). Construction: Volvo, Caterpillar, CNH, Komatsu, Hitachi, Deere, Terex, Doosan. Mining: Sandvik, Caterpillar, Hitachi, Epiroc. Agriculture: AGCO (20-22), CNH, Deere. Sales in construction/mining/agriculture equipment divisions only

Deep sea fleet adjusting to the market situation

Increase in recycling

Vessel age distribution # vessels for seaborn LV and HH transport • 5 vessels recycled in the quarter, 20 so far this year* • No new orders and one delivery in the quarter 2 2 1 2 1 1 4 1 8 7 7 10 23 32 37 15 14 18 22 36 41 49 67 60 68 62 41 19 ^{24 26} 23 26 15 6 1983 1997 2010 2019 46 vessels built between 1983 and 1997

• Orderbook at 13 vessels**

• Demand growth Net fleet growth
• Deep-sea shipments forecasted to decline significant in 2020 before picking up
• Increased recycling/scrapping and low order activity leads to a reduction of fleet in 2020 and forward
• Today around 4% of fleet is idling / laid up

Outlook and Q&A

Craig Jasienski CEO

Focus on employees, customers, and the future

We continue to manage what we can control and have a solid plan for working through these trying times

Initiatives

• Social distancing ensuring safe infrastructure and processes, working from home, mental health and wellness support
• Crew changes supporting ship managers to enable safe changes
• Match volume demand dynamic vessel scheduling, speed adjustments and utilising short-term charter market to adjust capacity
• Customers collaborating closely to support immediate needs and forward expectations

Outlook

• Q4 ocean volumes continued improvement, expect to be around 5% lower year on year
• Remain cautious on medium/long-term volume outlook

Thank you!