Wilh. Wilhelmsen ASA

Earnings Release • Aug 9, 2018

Wilh. Wilhelmsen Holding ASA Second quarter 2018

Thomas Wilhelmsen, group CEO

August 2018

Improved underlying EBITDA

Wallenius Wilhelmsen net profit up q-o-q

Significant fall in Hyundai Glovis value

Highlights Second quarter 2018

Cost accrual for termination of Drew transaction

NOK 3.50 dividend per share

• Extensive portfolio of branded solutions
• Innovative new product solutions
• Supplying to ~50% of global fleet
• Global network
• USD 350 million annual turnover
• Strong cash flow

US District Court ruling blocks Drew acquisition, but… …Wilhelmsen marine products strong on stand alone basis

Nitrogen gas cylinder (Unitor)

High pressure cleaner (Unitor)

Mooring solution (Timm Winchline)

Cooling water treatment (Nalfleet)

Hyundai Motor group restructuring proposal

• Proposal announced 28 March; withdrawn in May
• No new proposal announced

A volatile first half for Hyundai Glovis investors Proposal for restructuring of Hyundai Motor Group withdrawn

Wilhelmsen financial result hit by Hyundai Glovis share price volatility

• Q1 2018: Gain USD 144 million
• Q2 2018: Loss USD 250 million

	Maritime	Supply	Holding/	Elim /
	services	services	Investm	discont	Group
USD mill
- unless otherwise indicated	Q2'18	Q2'18	Q2'18	Q2'18	Q2'18
Total income	148	73	3	-2	222
- of which operating revenue	147	71	3	-2	219
which gain/(loss) on sale - of of assets	1	2	0	0	3
EBITDA	-9	14	-4	0	0
Operating profit/EBIT	-13	9	-4	0	-9
Share of profits from associates	1	4	6	0	11
Change in fair financial value assets	-5	0	-236	0	-241
Other financial income/(expenses)	-19	-4	-7	0	-30
income/(expenses) Tax	4	-1	-7	0	3
Profit/(loss) from continued operations	-33	8	-241	0	-266
Discontinued operations	0	0	0	0	0
Profit/(loss) for the period	-33	8	-241	0	-266
Profit/(loss) owners of the to parent	-34	5	-172	0	-201
EPS (USD)					-4 32 ,
Other comprehensive income					-41
Total comprehensive income					-307
comprehensive income owners of Total parent					-239
Total assets	911	662	1 592	-29	3 136
Equity parent	300	156	1 389	0	1 845
equity Total	300	210	1 518	0	2 027
Equity ratio	33 %	32 %	95 %	0 %	65 %

Reduced financial assets value resulting in net loss

Improved underlying contribution from operating entities

Total income up 5% from first quarter

Underlying EBITDA up 77%

• Maritime services EBITDA hit by USD 27 million non-recurring acquisition cost
• •Seasonal recovery for supply service

Increase in share of profit from associates

• Improvement in Wallenius Wilhelmsen net profit

Significant loss on financial assets

• Hyundai Glovis value down USD 250 million

Recovery in maritime services' operating margin

Maritime services - total income and adjusted EBITDA margin

Stable development in total income

• Upward trend for marine products
• Stable for agency services
• Reduced ship management fleet new contracts from Q3
• Seasonal reduction for non-marine products

Adjusted EBITDA +36% q-o-q

USD 27 million non-recurring termination fee and legal cost

Reported EBITDA hit by Drew termination fee and legal cost

Improvement for supply services

NorSea Group income up 24% from first quarter

• Seasonal upswing for supply base activities
• General increase in activity level
• Total USD 3 million sales gains (including JVs)

Stable development for WilNor Governmental Services

NorSea Group EBITDA lifted by seasonality and property sales gains

Fall in holding and investments results

Increased contribution from Wallenius Wilhelmsen

Wallenius Wilhelmsen result up, but from a weak first quarter

• USD 6 million share of net result

Hyundai Glovis

• USD 250 million loss from change in fair value

Qube Holdings

• USD 15 million gain from change in fair value
• USD 27 million net proceeds from sale of shares
• Retained 50 million shares

EBITDA adjusted for extraordinary items of USD 159 million
Underlying positive volume development, especially for high & heavy
However, ocean results impacted by lower rates, increased net bunker cost and unfavorable currency movements	$\mathbf{e}_{\mathbf{0}}^{\mathbf{e}}$
The newbuilding "Titus" was delivered end of May 2018	an
About USD 110 million in synergies confirmed
Acquisition of 70% of Syngin Technologies for about USD 30 million

Equity ratio of 65%

Wilhelmsen group total assets and equity ratio

Key figures

Equity and total assets down due to reduced financial assets value

Liquidity and debt position remains strong

Maturity profile – outstanding debt

1) Cash and cash equivalents and current financial investments

2) Excluding intercompany debt

Refinancing of main NorSea Group facilities on 5-year basis

First dividend of NOK 3.50 per share paid

Dividend payments Upstream cash 1) 2)

Dividend yield (right axis)

1) Dividend from WWASA; net contribution from maritime services; dividend, interest and net gain from Treasure ASA, NorSea Group, Qube, WWH portfolio and other investments 2) Yield calculated based on previous year median closing price for WWI and WWIB share

Potential second dividend of up to NOK 2.50 per share

Steady stream of new business, products and solutions Development supported by strength of combined group competence and global reach

Autonomous drone delivery of parcels from shore to ship Ships service - Pilot launch in Singapore Q3 2018

Trident Juncture host nation support WilNor Governmental Services/NorSea Group - Q3/Q4 2018

Wilhelmsen Ship Management UK Limited 11 vessel on management from Q3 2018

TenneT offshore wind contract NorSea Group/Wilhelmsen Ship Management Contract win Q1 2018 - operational Q3 2018

Massterly - autonomous shipping company Wilhelmsen and Kongsberg JV Agreement signed Q2 2018 – operational Q3 2018

DoLittle – digital development 50/50 JV from Q2 2018

After a weak start of the year, the underlying trend has been more optimistic for all three business segments. The positive development is expected to continue into the third quarter.

A more negative sentiment towards global trade, and potential introduction of further tariffs and restrictions, creates uncertainties on a medium-term basis.