Capital Markets Day

Oslo 25 September 2024 09:00 – 13:00

09:00 – 09:03	Welcome and practical info with Anders
09:05 – 09:15	Ambitions and strategy with Lasse
09:15 – 10:00	Unlocking the value of terminals, processing and distribution with Mike
10:00 – 10:15	Coffee
10:15 – 10:45	The changing shape of fleet renewal with Morten & Lene
10:45 – 11:00	Capital allocation with Torbjørn
11:00 – 11:10	Coffee
11:10 – 11:40	Partnering with customers with Pia
11:40 – 11:55	Market outlook with Hesnes Shipping's Espen H Wessel
11:55 – 12:00	The way forward and Q+A with Lasse
12:00 – 13:00	Lunch

Ambitions and strategy

Lasse Kristoffersen President and CEO

FY 2023 EBITDA USD 1,807m Q1 24 EBITDA USD 438m Q2 24 EBITDA USD 507m

Dividend 2023 - 1.14 USD Dividend H1 2024 - 0.61 USD Total amount to be paid to shareholders in 2024 - USD 738m

Two ways to approach fundamental changes in the industry

ADAPT SHAPE

Integrated supply chain partner

and

Unlocking the value of terminals, processing and distribution

Mike Hynekamp Chief Strategy & Corporate Development Officer

We provide a comprehensive global landbased logistics network

1.15 USD billion in revenues

6.3%

Logistics revenue CAGR 2019 - 2023

15% EBITDA margin

8 Terminals handled 3 million units

66 Centers handled 6.3 million vehicles

7687 Logistics employees

28 Countries with WALWIL sites

All figures are for 2023 and terminal figure includes MIRRAT

An integral part of customers' supply chains

Logistics in numbers¹

Segment	Revenue (USD m)	EBITDA margin	Share of Logistics EBITDA2
Auto Vehicle processing services		12% 512	36%
H&H Equipment processing services	143	22%	18%
Terminals Terminal and Cargo related services	272	36%	56%
Inland Inland transportation and freight forwarding	226	4%	5%

Our network and global footprint

Vehicle processing centers
Equipment processing centers
Trade routes

Why do we have landbased logistics?

One-stop shop

Ability to provide integrated logistics offering and end-to-end visibility with one point of contact

Flexibility

Ability to delay customization and region-specific changes to base models the factory cannot

Scale

Facilities and expertise is often shared by multiple OEMs and located at/or close to terminals

Scope

Shipping can rely on the support of a world-leading land-based logistics network

Terminal network supporting the major auto and H&H hubs

Wallenius Wilhemsen terminal footprint¹

Region	Market position	Import '000 units	Export '000 units
North America	3 terminals, one of few leading players	~675	~155
EMEA	Market leader in Europe with Zeebrugge, Southampton, and Bremerhaven	~260	~520
Asia	Our own terminal in Korea and two terminal JVs in China perfectly located for export growth	~3602	~2402
Oceania	Melbourne Internal RoRo & Auto Terminal to be divested in Q4 24/Q1 25	~410	~50

Terminal services and market drivers

Loading and offloading (stevedoring)
Custom clearance and documentation
Vessel clearance and stow planning

Market drivers

Export/import of vehicles and equipment

Pricing drivers

Charging
Periodic service programs (30 days, 60 days, 90 days, or more)
Short-term storage
Long-term storage and warehousing of units and parts¹

Inventory management and local demand for vehicles

Port calls Cargo mix and service complexity Number of cargo units Will be covered later

Heat treatment
Fumigation
Bio-cleaning

Seasonal biosecurity events Will be covered later

Quality inspections
Upfitting and customization
Maintenance and repairs
Transportation

Vehicle Processing Centers (VPCs)

Vehicle processing center (VPC) services and market drivers

Transportation from factory/terminal
Inbound quality inspection
Documentation
SOC¹ check/EV charging

Transportation + reception Maintenance and repair Customization Dispatching Transportation + storage

Warranty and body repairs
Repair of factory imperfections
Maintenance program, 30, 60, 90 days or more
Washing

Painting
GPS and radio systems
Sport and cargo kits
Splash guards, spoilers, bumpers, fog lights, etc.
Upfitting

Pre-delivery inspection
Protection for transport
Railcar loading
Truckload staging
System integration

Short and long-term storage
Charging and fueling
Domestic transport
Port drayage
Produced/exported/imported volumes + Complexity and scope of services Market drivers Country and customer specific requirements + Pricing drivers Number of cargo units Service complexity Required manhours Number of days in warehouse + + +

Equipment Processing Centers (EPCs)

Equipment processing center services and market drivers

Transportation from factory/terminal
Inbound quality inspection
Documentation

Market drivers

Transportation + reception Assembly + maintenance Customization Dispatching Transportation + storage

down units
Building/change of truck
Mounting of stick • Hydraulic work
Rust prevention
Modification and installment of accessories
Mounting special tires, fenders, and stairs
Re (paint)

Pre-delivery inspection • Protection for transport
Railcar loading
Truckload staging
System integration

Short and long-term storage
Charging and fueling
Domestic transport
Port drayage

Produced/exported/imported volumes

Complexity and scope of services Country and customer specific requirements +

Pricing drivers

Highly specialized services in our EPCs

Shipping and Logistics – Why 1+1 makes more than 2?

How we are unlocking the value chain

Longstanding and close Shipping relationships
Understanding of their needs and concerns
Identify Logistics opportunities and develop onshore our offering
Increased value creation across value chain

With our top 50 biggest customers

Of the largest 50 customers, 70% purchase both Shipping and Logistics services¹
Among the top 50 customers in Shipping, 48% are also large customers in Logistics¹
On average, 24% of revenues from these customers are generated in Logistics¹

From Land to Ocean – a customer journey

Future growth and value creation ambitions

• Utilizing a standardized, digitally enhanced, and efficient logistics network

Strengthen profitability Create added value for customers Grow our Logistics network

Through a robust, resilient, and sustainable supply chain across land and sea
Build and expand on strategic relationships

Target double-digit annual revenue growth
Looking at organic growth and M&A
Selectively explore terminal opportunities

Coffee

Back in 15 minutes

The changing shape of fleet renewal

Morten Skedsmo SVP Fleet Ownership

Lene Bårli Wiederstrøm Senior CEO Advisor

Shaper Class

Methanol dual fuel vessels ordered

Key Specifications

Dual fuel methanol capable Ammonia ready 9,300 CEU capacity* 12 cargo decks 76,900 m² Deck area 20,050 m² H&H area Stern ramp capacity of 320 mt Length 228 m / Breadth 38 m

and

Purpose built with economies of scale and prepared for net-zero

patterns

Minimal fuel consumption¹

Significant savings of fuel and emissions compared to current fleet

• Largest PCCs on order

20.2

4.4K-5.8K CEU

g /CEU x NM

17.7

6.2K-6.7K CEU

7.0K-7.3K CEU

Methanol capable from delivery
Extensive energy saving measures

15.8 16.7 17.5

7.6K-8.0K CEU

Average

12.7

-27%

Shaper 9.3K CEU

11.0

-37%

Shaper 11.7K CEU

Designed for our specific needs and trading

• Ramp strength highest in order book

Unmatched ramp strength² Heavy-duty hoistable decks

Offers high flexibility to accommodate both special H&H equipment and heavy EVs

Large H&H capacity
100% EV capacity

Biofuels and the Reduced Carbon Service

Sustainable biofuel blends are already an integrated part of our fuel mix and will be pivotal to reducing carbon emissions

Biofuel blends in 2024

10%of total fuel consumption

Customer support

Majority of 2024 contract renewals include biofuel

17,569	units shipped
11,750	tonnes of biofuel blend used
23,42%	lower emission compared to conventional fue

Our customers will pay for the green fuels needed towards net-zero

Utilizing and securing green fuels is needed over the next decade to reach net zero by 2040. And all customers will be part of this journey.

All, new major contracts for shipping have or will have a green fuel cost recovery mechanism.

We are constantly working on sourcing and introducing affordable and available green fuels

We believe a mix of green fuels will be used going forward, both biobased and e-based

We will adjust BAF¹ to recover the cost of green fuels to meet our decarbonization targets

Even with green fuels, transportation remains a minor part of the total vehicle or equipment purchase cost

Capital Allocation

Torbjørn Wist CFO

Capital allocation principles

Dividend Policy

The company targets a cash dividend that over time shall constitute 30-50% of net profit on an annual basis
Dividend will be declared and paid on a semi-annual basis
The board is authorized to consider extraordinary dividends and/or share buybacks to enhance shareholder returns
2024 payouts of USD 738m due to combination of payouts under new and old dividend policy

Reinvestment

The company will reinvest undistributed profits in strengthening the future of the business
Investments may include newbuildings, purchase options, secondhand assets, land-based activities, digital capabilities as well as maintenance of assets
Expansion can be achieved via M&A, green- and brownfield

Strong commitment to dividends

1) Includes dividend payment scheduled for 10 October 2024

2) Payout ratio for previous year, except amounts paid out in 2024 which is the total dividends for 2023 and H1-24 divided by the net profit for the 18-month period ⁴¹

Newbuild investments and financing

Remaining capex commitment is ~USD 1.2bn linked to 12 Shaper class vessels on order
EUKOR 6 newbuildings delivered in 2026 & 2027
- Signed financing with six Korean and international banks
- Up to USD 450m / ~70% of purchase price of post-delivery facilities
- 7-year tenor from delivery, sustainability linked
- Attractive pricing at Term SOFR + 155bps from delivery
WW Ocean 6 newbuildings delivered in 2027 & 2028
- Will be financed closer to delivery

Newbuilding capex schedule (USDm)

Multiple purchase options for vessels under long-term leases

We hold 14 purchase options/obligations linked to our charter-in fleet
- The majority resides with EUKOR
- Some charters may be extended prior to deciding upon the purchase option
Total investment of USD 235m if all options are declared¹
- Current charter free market value² > USD1bn
Financing may be considered on unencumbered vessels
When exercising options, we book no profits even if market values exceed book values
- Purchase option reflected in lease accounting