Wilh. Wilhelmsen ASA

Earnings Release • Feb 13, 2014

Wilh. Wilhelmsen Holding ASA

Fourth Quarter 2013

Thomas Wilhelmsen – group CEO and Nils P Dyvik – group CFO

Disclaimer

This presentation may contain forward-looking expectations which are subject to risk and uncertainties related to economic and market conditions in relevant markets, oil prices, currency exchange fluctuations etc. Wilh. Wilhelmsen Holding group undertake no liability and make no representation or warranty for the information and expectations given in the presentation.

• 1. Highlights for the quarter
• 1. The year 2013
• 1. Prospects
• 1. Financials Nils P. Dyvik, group CFO

WWH group Fourth quarter

Mixed market – stable overall

Total income slightly up q-o-q

EBIT impacted by WWL/JFTC accrual

Favorable net financials and tax

EPS slightly up

WW ASA group Highlights for the quarter

Increased shipping income / EBIT

• o Rebound in auto volumes from Q3
• o Reduced ARC (high and heavy) volumes
• o Less favourable cargo mix
• o Two options declared by WWASA

Stable logistics income / EBIT

o ASL/POV protest denied (February 2014)

Antitrust investigation

o WWL received draft cease and desist order / draft surcharge order from JFTC (January 2014)

WMS group Highlights for the quarter

Increased income

• o Strong growth in technical solution
• o Slight increase in ship management
• o Stable ships service

Operating profit maintained

Improved market sentiment

• o Clarksea index continued up in Q4
• o Increased newbuild ordering activity

WMS group Total income and EBIT margin

*Main "one-offs":

• Q2'11: Profit improvement plan
• Q1'12: Recall of UBWTS

WMS group – Ships service

Total income and daily income per vessel *

WMS group – Ship management

Total income and vessels served

Total income Vessels served (right scale)

WMS group – Technical solutions

Total income and order reserve

Products and services:

• Safety systems
• Power distribution/control
• HVAC R
• Insulation

Total income Order reserve (right scale)

Holding and Investments

Highlights for the quarter

Continued growth in NorSea Group

• o Income up y-o-y and q-o-q
• o Increase in third party supply chain management and vessel chartering
• o Net result slightly below the third quarter

Stable development in Qube

• o Share price up AUD negative
• o Half year dividend

Investment portfolio

o Further gains on Nordic equities

NorSea Group "Company of the Year" in Stavanger region Photo: Michael Kakakios

STOXX Nordic 30 (1.1 - 31.12.2013)

The year 2013

The group:

• o Results down from strong 2012
• o Paid dividend of NOK 5.50 per share
• o Multiple performance improvement programs

Wilh. Wilhelmsen ASA:

• o Reduced high and heavy volumes
• o Delivery of 5 new build vessels; 8 new orders
• o Ongoing antitrust investigation in JVs

Wilhelmsen Maritime Services:

• o Income lifted by increased newbuild activities
• o Service to operating fleet stable
• o EBIT margin 7.6%

Holding and investments:

• o Positive development for NorSea Group
• o Solid contribution Qube/financial investments

The board expects the activity level in the next period to be broadly in line with the fourth quarter

Wilh. Wilhelmsen Holding ASA

Fourth quarter 2013 – Financials

Nils Petter Dyvik – group CFO

13th February 2014

WWH group Key financial figures

Total income (q-o-q)

o 2% increase in total income o WW ASA stable; WMS up

EBIT (q-o-q)

o 14% decrease in reported EBIT

o 3% increase adjusted for JFTC accrual

EPS (q-o-q)

o Up 1% to USD 1.38

Total income (USD mill)

WWASA group Key financial figures

Total income (q-o-q)

o Flat development overall o Increased auto volumes o Decreased H&H on group level o Logistics stable

Total income (USD mill)

EBIT (q-o-q)

o 15 % reduction in reported EBIT o 6% increase in adjusted EBIT

o USD 16.5 mill. share of WWL/JFTC accrual

WMS group Key financial figures

Total income (q-o-q)

o Total income up 8% o WSS stable o WSM up 10% o WTS up 31%

EBIT (q-o-q)

o Stable development o WSS slightly down o WSM slightly up o WTS up due to increased activity

Total income (USD mill)

Holding and Investments

Key financial figures

Total income (q-o-q)

o 31% decrease in total income o Year end adjustments in holding o Lower NorSea Group contribution (seasonality)

Net profit (q-o-q)

• o Good contribution from financial investments
• o Qube dividend
• o Positive tax adjustment

Total income (USD mill)

Net profit after minority (USD mill)

The year 2013 Key financial figures – WWH group

Total income (USD mill)

Total income

• o 9% decrease in total income
• o Reduced income WW ASA shipping
• o Positive development WMS (WTS)
• o Positive first full year NorSea Group

EBIT

• o 30% decrease in EBIT
• o Adjusted EBIT down 19%
• o WW ASA shipping down Logistics up
• o Positive development WMS

EPS

• o Positive Qube/financial investments
• o EPS down 21% to USD 5.60

WWH group Financial income/(expenses)

USD mill	Q4'13	Q3'13	Q4'12	YTD'13	YTD'12
Net financial items	14,8	18,6	10,8	43,4	29,4
Investment management	10,5	13,5	4,8	29,5	1 18,7
Interest income	2,3	2,5	3,7	9,6	8,1
Other financial items	2,0	2,6	2,3	4,3	2 2,6
Interest expenses	-19,6	-19,8	-21,4	-79,7	-87,6
Interest rate derivatives - realised	-13,8	-8,9	-20,4	-38,8	-51,9 3
Interest rate derivatives - unrealised	18,7	2,3	19,5	71,2	9,3
Net financial - currency	1,3	1,0	-3,0	18,1	4 -2,4
Net financial derivatives bunkers	-2,5	-0,6	-1,1	-3,2	-1,8
Financial income/(expense)	-1,1	-7,4	-15,6	11,0	-105,2

• 1. Strong contribution from investment management (WWH and WWASA)
• 1. Positive contribution from Qube (excl. USD 23 mill. gain under comprehensive income)
• 1. Net gain interest rate derivatives (higher long term interest rates)
• 1. Net gain financial currency

WWH group Balance sheet (Equity method)

USD mill	31.12.2013			30.09.2013		31.12.2012
Assets
Non current assets	3 728	75 %	3 713	74 %	3 700	74 %
Current assets (excl liquid funds)	484	10 %	584	12 %	491	10 %
Liquid funds	734	15 %	744	15 %	790	16 %
Total assets	4 946	100 %	5 042	100 %	4 982	100 %
Equity & liabilities
Equity	2 286	46 %	2 249	45 %	2 079	42 %
Interest-bearing debt	1 852	37 %	1 887	37 %	2 008	40 %
Other non current liabilities	355	7 %	370	7 %	423	9 %
Other current liabilities	454	9 %	536	11 %	471	9 %
Total equity and liabilities	4 946	100 %	5 042	100 %	4 982	100 %
Capital employed	4 137		4 136		4 087

46% book equity ratio – up 4% y-o-y

Reduced interest bearing debt

WWH group Cash flow (Equity method)

USD mill	Q4'13	Q3'13	Q4'12	YTD'13	YTD'12
Share of profit from operations	78	43	55	195	248
Dividend received from joint ventures and associates	14	3	8	50	62
Net cash provided by operating activities	92	46	63	245	310 1
Investments in fixed assets	(34)	(9)	(14)	(92)	(270) 2
Proceeds from sale of financial investments	38	35	12	127	73
Investments in financial investments	(30)	(15)	(8)	(216)	3 (59)
Other	2	12	11	25	120
Net cash flow from investing activities	(24)	23	2	(156)	137
Net repayment of debt	(23)	(35)	(93)	(77)	66
Dividend to shareholders/purchase of own shares	(24)	-	(48)	(97)	(85)
Other	(38)	(19)	(48)	(106)	(109)
Net cash flow from financing activities	(84)	(55)	(189)	(280)	(126)
Net increase in cash and cash equivalents	(16)	14	(124)	(191)	47

• 1. Operating cash flow of USD 245 mill (including USD 50 mill. from J/V and associates)
• Not including USD 150 mill share of profit in J/V and associates retained
• 1. Reduced investment y-o-y
• 1. Net USD 89 mill. increase in financial investments

WWH ASA Dividend per share

NOK/share

• Proposed dividend of 3.00 NOK per share to be paid May 2014
• Proposed Board authority to approve further dividend of up to maximum NOK 2.50 per share (following changes to Norwegian Companies Act)

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