Wilh. Wilhelmsen ASA

Third quarter 2016

>

Wilh. Wilhelmsen ASA 11th November 2016 Jan Eyvin Wang, President and CEO

2

> Agenda

• Macro developments

• Volume developments

• Outlook

• Merger between WW and OW

Disclaimer

This presentation contains 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 ASA group undertake no liability and make no representation or warranty for the information and

expectations given in the presentation.

3

> Light vehicle sales in key markets – quarterlySoft quarter in key markets

Million units

Region Q3'16 Q2'16 QoQ change Q3'15 YoY change 2016 FY

N America 5.38 5.64 -5 % 5.29 2 % 20.90

Europe* 3.98 4.67 -15 % 3.80 5 % 17.00

Oceania 0.32 0.35 -9 % 0.32 0 % 1.30

BRICs 7.96 7.90 1 % 7.09 12 % 32.40

.....Brazil 0.52 0.49 6 % 0.62 -16 % 2.00

.....Russia 0.35 0.35 0 % 0.41 -15 % 1.40

.....India 0.85 0.78 9 % 0.76 12 % 3.40

.....China 6.24 6.28 -1 % 5.30 18 % 26.00

*) Excluding Russia and Turkey

4

> Quarterly light vehicle exports (units)Weak Korean exports due to strike

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

Q1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2009 2010 2011 2012 2013 2014 2015 2016

Japan Korea

5

> CAT resource industries sales (USD billion)Bottoming out?

0

1

2

3

4

5

6

7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2010 2011 2012 2013 2014 2015 2016

Resource Industries

Resource Industries

Resource industries includes mainly mining and forestry related equipment

6

> Group ocean volume developmentWeaker volumes; seasonality and strikes in KoreaStrike impact for EUKOR 70,000 units

Prorated ocean volumes – WW group (100%)

1 000 CBM

15 218

16 743

15 465

18 27118 034

19 385

18 230

19 56018 708

20 535

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

22 000 -9 %-16 %

2-14 3-14 4-14 1-15 2-15 3-15 4-15 1-16 2-16 3-16

7

>

*) Unprorated ocean volumes – WWL and EUKOR (100 %)

Group ocean cargo segment developmentBoth Auto and High & Heavy volumes down in the third quarter

8

> Outlook

• Continued soft fundamentals are exacerbated by political uncertainties

• Anti-trust provisions stands at USD 108 million

• IMO: 0.5 % global Sulphur content of fuel from 2020

• Creation of WWLASA on schedule for end Q1 approval

9

> Sulphur content in fuel – today

10

> Sulphur content in fuel – from 2020

11

> Sulphur content – Three ways to comply

1. Purchase Sulphur compliant fuel

– Marine Gas Oil or Ultra Low Sulphur Fuel Oil – 0.1 %

– Low Sulphur Fuel Oil – 0.5 %

2. Install Scrubber technology and operate High Sulphur

Fuel Oil – 3.5 %

- Payback time 2-6 years

3. Install propulsion system based on LNG as fuel

Will become part of BAF recovery system

12

>

WWH ASA

Wallenius Wilhelmsen 

Logistics ASA

Wallenius 

Lines AB

~ 40%

Highlights

• Enhancing our world-leading shipping and logistics platform

• Will be listed on Oslo Stock Exchange based on the Wilh. Wilhelmsen ASA structure

• Head office will be in Norway and Craig Jasienski will become CEO

• Balanced shareholder agreement

• Sub-optimal governance model in old structure

• Current market conditions require an agile and efficient business model

• Synergy potential of USD 50-100m

Rationale

Market

~ 20% ~ 40%

SHIPPING LOGISTICS

TERMINALS

INLAND 

DISTRIBUTION

PROCESSING 

CENTRES

WWL

100%

ARC

100%

EUKOR

80%

VESSELS

WWASA Group LOI signed with Wallenius

13

> WWASA and OW merger Tentative timeline and key milestones

• Early / mid December: BoD resolution of merger plan and

summons to EGM

• Mid / end January: IM published and EGM held

• Mid/end March: Creditor periods expire

• End March: Expected clearance of anti trust filings

Completion of merger end March/early April, subject to above

14

> Prospects

The board expects volume growth to remain weak going into 2017.

The current global political landscape adds further uncertainties.

Wilh. Wilhelmsen ASA

Third quarter 2016

>

Wilh.Wilhelmsen ASA 11th November 2016 Benedicte B. Agerup, CFO

16

> WWASA Group – Key financialsUnderlying income and profitability declined q-o-q

• Total income reported - 49% q-o-q, - 20% y-o-y

• EBIT reported - 92% q-o-q

• Substantial positive non recurring item in Q2 2016 caused by demerger of NAL

• Ocean transported volumes fell by 9%

• Stable contribution from logistics segment q-o-q

800

600

400

200

0

100

900

300

500

700

Q1

USD million -49%

Q4Q3Q2

522 508

418

827

559525

571

500

400

300

200

100

0

-100

-200

-92%

Q4Q3

USD million

Q2Q1

98

-134

32

126

417

73 66

20162015Total income Total EBIT

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>

USD million 2016 Q3 2016 Q2 2016 YTD 2015 YTD 2015 Q3 2015 FY

Operating income 418 452 1 301 1 591 511 2 095

Gain on sale of assets 375 455 26 29

Share of profits from JV's and associates 13 35 12 36

Total income 418 827 1 769 1 652 522 2 159

EBITDA 69 455 685 155 (94) 262

Depreciation and impairments (37) (38) (110) (118) (41) (160)

EBIT 32 417 575 36 (134) 103

Financial income/(ex pense) 0 (21) (36) (115) (73) (128)

Profit/(loss) before tax 32 396 539 (78) (207) (25)

1 1 1 1 1 Net profit

1) 25 392 521 (86) (213) (4)

Earnings per share (USD) 0.11 1.78 2.37 -0.39 -0.97 -0.02

1) after minority interest

WWASA Group – Profit and Loss Q3 2016Proportionate method

• Total income adjusted -8% q-o-q and - 20% y-o-y

• Total EBIT adjusted -27% q-o-q and -53% y-o-y

18

> WWASA Shipping – Key financialsLower transported volumes, partly seasonal

• Total income reported - 9% q-o-q, - 23% y-o-y

• EBIT reported - 31% q-o-q

• Drop in ocean transported volumes, both auto and H/H

• Strike at manufacturing plants in Korea, affecting EUKOR volumes negatively

• Mitigating actions towards surplus tonnage situation

• Continued pressure on rates combined with unfavourable cargo and trade mix

600

500

400

300

200

100

0

USD million

-9%

Q4Q3Q2Q1

437

372

470

357

460433

337

100

50

0

-50

-100

-150

Q1

USD million

-31%

Q4Q3Q2

59 62

28

5838

-150

26

20162015

Shipping income Shipping EBIT

19

> WWASA Shipping – EBIT marginWeak EBIT margin

+ Lower G&A cost base - Suboptimal cargo and trade mix

+ Reduced OPEX - Reduced volumes

- Rate pressure

*) Q3 2015 EBIT margin -34.4%, large negative non-recurring item

*)

20

> WWASA Logistics – Key financialsResults on par q-o-q

• Total income reported stable q-o-q, - 5% y-o-y

• EBIT reported stable q-o-q, - 56% y-o-y. Hyundai / Glovis included in Q3 2015.

• Underlying result on par with previous quarter

• Restatement of pass-through revenue/cost within inland distribution

20

0

180

160

140

120

100

80

60

40

Q2

8896

Q1

175

117

Q4

83

Q3

8993

USD million

0%

20

0

120

100

80

60

40

Q2

818

Q3

818

+3%

Q4

6

USD million

Q1

100

40

20162015

Logistics income Logistics EBIT

21

> WWASANewbuilding program ended Q2 2016

• Capex program finalized Q2 2016 with

delivery of 2 post panamax vessels in April

and June

• Normal dry-docking of MUSD 10-15 MUSD

on an annual basis only planned capex

22

> WWASA Group – Financial income/(expense) *)

Decline in net financial expenses q-o-q

• Unrealised gain on hedging contracts

• Positive return from investment portfolio, mainly as a result of narrowing

credit spreads

*) Proportionate figures

USD million 2016 Q3 2016 Q2 2015 Q3 2015 FY

Net financia l  i tems 5.2 5.0 (15.9) (6.3)

Net interes t expenses (24.7) (26.1) (22.0) (91.4)

Interest rate derivatives  - unrea l ised 10.6 (1.1) (15.3) 24.3

Net financia l  - currency 8.9 (3.2) (15.2) (48.7)

Net financia l  deri vati ves  bunkers (0.1) 4.3 (4.2) (6.3)

Financial income/(expense) 0.0 (20.9) (72.6) (128.3)

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> WWASA Group – Balance Sheet*)

Continued strong balance sheet

*) Equity

USD million

Assets

N on current assets 2 779 87 % 2 925 89 %

C urrent assets (ex cl liquid funds) 17 1 % 24 1 %

Liquid funds 412 13 % 349 11 %

Total assets 3 207 100 % 3 299 100 %

Equity & liabilities

Equity 1 455 45 % 1 655 50 %

N on current interest-bearing debt 1 259 39 % 1 135 34 %

Other non current liabilities 193 6 % 225 7 %

C urrent liabilities 301 9 % 285 9 %

Total equity and liabilities 3 207 100 % 3 299 100 %

30.09.2016 31.12.2015

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>

0

50

100

150

200

250

300

350

400

450

500

550

USD million

84

2019

314

2018

298

2017

115

2016

106

2021 ->

524

2020

WWASA Group – interest bearing debtRefinancing of balloons in 2018/2019

Export financing

Financial lease

Banks

Bonds

• Ordinary installments of approx USD 25 million in Q3.

• Bond maturity in November 2016 of approx. USD 70 million to be financed from cash position.

• Two vessels refinanced in August/September, reducing 2019 balloons.

• Process of refinancing the 2018/2019 balloons continuing.

25

> WWASA Group – Liquidity developmentPositive contribution from operations

45

4

5

21

33

440

420

405

435

425

0

410

5

450

455

445

465

460

415

430

400

Liquidity Q3 2016

411

OtherInterest and

derivatives

Liquidity Q2 2016

USD million

EBITDA*) CapexNet financing

3

Dividend received

from JV’s

0

JVs

416

*) Equity

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