Wilh. Wilhelmsen ASA

Earnings Release • Nov 6, 2019

Wilh. Wilhelmsen Holding ASA Third quarter 2019

November 2019

• Positive EBITDA development

• Revenue growth and margin improvement for maritime services
• Further uplift for supply services
• Strong contribution from Wallenius Wilhelmsen
• Reduction in Hyundai Glovis value
• Buyback of own shares

Highlights Third quarter 2019

Post quarter event

• Second dividend of NOK 2,50 per share

1

	Maritime	Supply	Holding/	Elim /
	services	services	Investm	discont	Group
USD mill
- unless otherwise indicated	Q3'19	Q3'19	Q3'19	Q3'19	Q3'19
income Total	150	69	3	-2	220
- of which operating revenue	149	69	3	-2	219
which gain/(loss) on sale - of of assets	1	0	0	0	1
EBITDA	31	15	-4	-1	42
Operating profit/EBIT	24	5	-5	0	24
Share of profits from associates	1	4	13	0	18
Change in fair financial value assets	0	0	-37	0	-37
Other financial income/(expenses)	-18	-5	3	0	-20
income/(expenses) Tax	-2	-1	3	0	-2
Profit/(loss) from continued operations	5	2	-25	0	-18
Discontinued operations	0	0	0	0	0
Profit/(loss) for period the	5	2	-25	0	-18
Profit/(loss) owners of the to parent	5	2	-14	0	-7
EPS (USD)					-0 15 ,
Other comprehensive income					-43
Total comprehensive income					-61
comprehensive income owners of Total parent					-47
Total assets	852	677	1 764	-37	3 256
Equity parent	191	153	1 515	0	1 859
equity Total	189	206	1 672	0	2 068
Equity ratio	22 %	30 %	95 %	0 %	64 %

Group result lifted by strong EBITDA and profit from associates

USD 7 million net loss in Q3'19 due to non-cash financial loss

Total income up 6% from previous quarter

USD 42 million EBITDA

• Revenue growth and margin improvement

USD 18 million share of profit from associates

• Mainly Wallenius Wilhelmsen ASA

USD 57 million net financial loss

• Reduction in Hyundai Glovis value
• Unrealised FX loss from appreciation of USD

USD -0.15 EPS

Maritime services - total income and adjusted EBITDA margin *)

Improved operating performance for maritime services USD 31 million EBITDA in Q3'19

*) Margin adjusted for main non-recurring items: Q4'16: Sales gain and transaction/restructuring cost Q1'17-Q2'18: Drew acquisition cost Q2'19 Property sales gain

Income up 2% q-on-q

• Total income - continued operation
• Adj EBITDA margin
• Adj EBITDA margin - excl. IFRS 16 (from Q1'19)
• Main non-recurring gain
• Main non-recurring loss (size indicates USD effect)
• Increased sale of marine products within ships service, partly due to IMO 2020 transition
• Ship management income lifted by increase in vessels on full technical management and new offshore wind activities

Reported EBITDA up 9% q-on-q

• EBITDA adjusted for Q2 sales gain up 35% q-on-q
• EBITDA margin of 21%

Supply services - total income and adjusted EBITDA margin * )

Seasonal upswing for supply services USD 15 million EBITDA in Q3'19

Income up 15% q-o-q

• Continued strong activity at Norwegian supply bases
• Increased income from NorSea Wind and activities in Denmark

EBITDA up 5% q-o-q

USD 4 million share of profit from associates

Sales gain Adj. EBITDA margin - excl. IFRS 16 (from Q1'19) Adj. EBITDA margin Total income (excl. sales gain)

*) Margin adjusted for sales gain: Q2'18: USD 2 million sales gain Q4'18: USD 1 million sales gain Q1'19: USD 6 million sales gain

Sales gain (size indicates USD effect)

Margin improvement offsetting lower revenue in Wallenius Wilhelmsen

Wilhelmsen share of profit USD 13 million

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Financial assets remain exposed to Hyundai Glovis share price

Hyundai Glovis share price down 3% in KRW

• Up 20% Y-o-Y

Qube Holding share price up 5% in AUD

• Up 17% Y-o-Y

Most financial asset values hit by appreciation of USD

Cash balance reduced due to USD 30 million share buyback

USD 65 million reduction in holding and investments' financial assets in Q3'19

Financial assets in holding and investments segment

Positive cash from all operating activities Reduced cash balance following USD 30 million buyback own shares

Solid balance sheet

Wilhelmsen group total assets and equity ratio *)

Equity ratio of 64%

Key figures

Q3'17: Consolidation of NorSea Group

Maturity profile – outstanding debt

(USD million)

• Leasing (IFRS 16) Maritime services (ex. lease) Holding and investments (ex lease)
• Supply services (ex.lease)

Healthy liquidity and debt repayment profile USD 452 million in group NIBD (net interest-bearing debt)

Holding and investments Maritime services Supply services

1) Cash and cash equivalents and current financial investments

2) Excluding intercompany debt

Dividend payments 1)

Second dividend of NOK 2.50 per share payable 26 November First dividend of NOK 2.50 per share paid 15 May

1) Yield calculated based on previous year median closing price for WWI and WWIB share

Cash to shareholders

0 10 20 30 40 50 60 70 2015 USD Million 2016 2017 2018 2019 Buy back

Dividend

The board expects a stable development of underlying operating performance for the combined group activities, but with normal seasonal variations.

Wilhelmsen is exposed towards global trade. Potential introduction of further tariffs and restrictions continues to create uncertainties. Wilhelmsen retains its robustness to meet such eventualities.

Supplementary slides – Third quarter 2019

Maritime services

Ships service Ship management

Supply services NorSeaGroup

Holding and investments

WalleniusWilhelmsen ASA Treasure ASA Financial investments

Ships service

Wilhelmsen Ships Service is a global provider of standardised product brands and service solutions to the maritime industry, focusing on marine products, marine chemicals, maritime logistics and ships agency Ships service is fully owned by Wilhelmsen

• Total income up 3% from the second quarter following higher sale of marine products, partly related to IMO 2020.
• Improved EBITDA supported by increased income and further improvement in the operating margin.

Q3'19 highlights

Ship management

Wilhelmsen Ship Management provides full technical management, crewing and related services for all major vessel types, and includes 50% of NorSea Wind Ship management is fully owned by Wilhelmsen

• Operating income up, supported by an increase in ships on full technical management and new offshore wind activities.
• EBITDA was also up when adjusting for the previous quarter sales gain.

Q3'19 highlights

• Income up 14% from previous quarter, supported by continued strong activity level at Norwegian supply bases and increased income from NorSea Wind and activities in Denmark.
• EBITDA followed development in total income

Q3'19 highlights

NorSea Group

NorSea Group provides supply bases and integrated logistics solution to the offshore industry Wilhelmsen owns ~75,2% of NorSea Group (as per 30 September 2019)

• Income 5% down from the second quarter and down 7% from the corresponding period last year.
• EBITDA up 1% from the first quarter, and well up from the corresponding period last year when adjusting for the IFRS 16 effect.
• EBITDA up year-over-year due to higher net freight per CBM, more efficient operations and lower net bunker cost for ocean segment.
• Declared second dividend of USD 0.06 per share

Q3'19 highlights

Wallenius Wilhelmsen ASA

Wallenius Wilhelmsen ASA is a global provider of shipping and logistics services towards car and ro-ro customers, and is listed on Oslo Børs Wilhelmsen owns ~37,8% of Wallenius Wilhelmsen ASA (as per 30 September 2019)

Photo: Wallenius Wilhelmsen

• USD 42 million loss from change in fair value of Hyundai Glovis
• Treasure ASA bought 465 000 own shares in the market, reducing net outstanding shares excluding own shares to 217.3 million (total number of shares remained 217.8 million). Wilhelmsen maintained a holding of 160 million shares in Treasure ASA.

Q3'19 highlights

Treasure ASA

Treasure ASA holds a 12.04% ownership interest in Hyundai Glovis, and is listed on Oslo Børs Wilhelmsen owns ~73.5% of Treasure ASA (as per 30 September 2019)

Photo: Hyundai Glovis

Market value of Wilhelmsen's investment in Treasure ASA

Financial investments

Financial investments include cash and cash equivalents, current financial investments and financial assets held by the parent and fully owned subsidiaries reported under the holding and investments segment

• USD 4 million in fair value gain from financial assets, partly offset by USD 3 million currency loss reported under other comprehensive income
• USD 2 million gain from investment management

Q3'19 highlights

Photo: Qube/Oslo Børs

Financial assets, investment portfolio and cash

wilhelmsen.com