Wilh. Wilhelmsen Holding ASAThird quarter 2019

November 2019

Highlights

• 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

Post quarter event

• Second dividend of NOK 2,50 per share

Third quarter 2019

1

Maritime

services

Supply

services

Holding/

Investm.

Elim./

discont. Group

USD mill

- unless otherwise indicated Q3'19 Q3'19 Q3'19 Q3'19 Q3'19

Total income 150 69 3 -2 220

- of which operating revenue 149 69 3 -2 219

- of which gain/(loss) on sale 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 value financial assets 0 0 -37 0 -37

Other financial income/(expenses) -18 -5 3 0 -20

Tax income/(expenses) -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 the period 5 2 -25 0 -18

Profit/(loss) to owners of the parent 5 2 -14 0 -7

EPS (USD) -0,15

Other comprehensive income -43

Total comprehensive income -61

Total comprehensive income owners of parent -47

Total assets 852 677 1 764 -37 3 256

Equity parent 191 153 1 515 0 1 859

Total equity 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

2

Improved operating performance for maritime services

Maritime services - total income and adjusted EBITDA margin *)

0%

5%

10%

15%

20%

25%

0

100

50

150

250

Q3

’16

Total income

USD mill

EBITDA

margin (adj.)

Q3

’17

21%

Q3

’18

Q2

’19

Q3

’19

+6% +2%

Total income - discontinued operation and gain/(loss) on sale of assets

Adj EBITDA margin

Total income - continued operation

Adj EBITDA margin - excl. IFRS 16 (from Q1’19)

*) 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

• 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%

USD 31 million EBITDA in Q3’19

Main non-recurring gain

Main non-recurring loss(size indicates USD effect)

3

Seasonal upswing for supply services

Supply services - total income and adjusted EBITDA margin *)

0%

10%

20%

30%

40%

50%

0

20

40

60

80

100

Q3’18Q4 ’17

Total income

USD mill

EBITDA

Margin (adj.)

22%

Q2 ’19 Q3 ’19

-3% 15%

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

USD 15 million EBITDA in Q3’19

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)

4

Margin improvement offsetting lower revenue in Wallenius Wilhelmsen

Wilhelmsen share of profit USD 13 million

5

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

51 44

94 10298

110 105106

384

462

432

144

167

155

0

100

200

300

400

500

600

700

800

900

MUSD

30.09.2018 30.06.2019

25

30.09.2019

817784

881+33 -65

Hyundai Glovis (equity holders of Wilhelmsen)

Hyundai Glovis (non-controlling interests)

Cash

Current financial investments

Other non-current financial assets

Financial assets in holding and investments segment

6

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

150

133

16

16 32

15

9

Dividend

and

buyback

2

Operating

maritime

services

30.06.2019 Operating

supply

services

Investing

activities

Operating

other

6

Other

financing

30.09.2019Net debt

Cash from

operating activities

Cash from

financing activitiesCash from

investing activities

Cash flow(MUSD)

7

Solid balance sheet

Wilhelmsen group total assets and equity ratio *)

Equity ratio of 64%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

1,000

2,000

3,000

4,000

5,000

6,000

USD mill

Q1’17 Q4’18

Equity ratio

Q4’17Q2’17Q3’16 Q4’16 Q3’17 Q1’18 Q3’19Q2’18 Q3’18 Q1’19 Q2’19

64%

Total assets Equity majorityEquity non-controlling Equity ratio

Key figures

Total assets USD 3 256 million (down 4% q-on-q)

Total equity USD 2 068 million (down 4% q-on-q)

*) Impacted by change in corporate structure:

Q2’17: Wallenius Wilhelmsen ASA merger

Q3’17: Consolidation of NorSea Group

8

Healthy liquidity and debt repayment profile

Maturity profile – outstanding debt(USD million)

Liquidity 1)

(USD million)

30

285

Year 4Year 1 Year 2

83

>4 yearsYear 3

38

248

Leasing (IFRS 16)

Maritime services (ex. lease)

Supply services (ex.lease)

Holding and investments (ex lease)

123102

6

Holding and investments Maritime services Supply services

70

228385

Outstanding debt 2)

(USD million)

1) Cash and cash equivalents and current financial investments

2) Excluding intercompany debt

USD 452 million in group NIBD (net interest-bearing debt)

9

Second dividend of NOK 2.50 per share payable 26 November

Dividend payments 1)

0

1

2

3

4

5

6

7

0.00

1.00

5.00

2.00

4.00

3.00

6.00

7.00

NOK/share

2015

Yield (%)

2016 2017 2018 2019

2nd payment

1st payment

Dividend yield (right axis)

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

First dividend of NOK 2.50 per share paid 15 May

Cash to shareholders

0

10

20

30

40

50

60

70

2015

USD

Million

20192016 2017 2018

Buy back

Dividend

10

Outlook

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.

11

Supplementary slides –Third quarter 2019

Maritime servicesShips service

Ship management

Supply services

NorSea Group

Holding and investmentsWalleniusWilhelmsen ASA

Treasure ASA

Financial investments

12

Ships serviceWilhelmsen 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

129135

131

139 140 138131 131 133

130134

0

20

40

60

80

100

120

140

160

180

200

USD mill

158

Q3’16 Q3’18Q3’17 Q3’19Q2’19

149+2% +3%

Income safety business (incl. sales gain) - sold Q4’16

Total income - ex safety business

Total income

13

Ship managementWilhelmsen 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

11

1211 11

11 1110

10 1011

10

0

2

4

6

8

10

12

14

16

18

20

Q3’17

USD mill

Q3’18Q3’16 Q2’18

6

Q3’19

16

15

+53% -5%

Total income (excl. material sales gain)

Material sales gain

NorSea Wind (50%)Total income

14

• 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 GroupNorSea Group provides supply bases and integrated logistics solution to the offshore industry

Wilhelmsen owns ~75,2% of NorSea Group (as per 30 September 2019)

52

56

70 70

79

59

68

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

Mill. USD

Q2’19Q3’18Q4’17

6

Q3’19

54

-4% +14%

Material sales gain

Total income (excl. material sales gain)Total income

15

• 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 ASAWallenius 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

477

627

784

937979

745

683

547 560

475

372

0

200

400

600

800

1,000

1,200

USD mill

Q3’16 Q3’17 Q3’19Q3’18 Q2’18

1.1551.134

-311 -103

Wallenius Wilhelmsen ASA

Wilh. Wilhelmsen ASA

Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen ASA

16

• 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 ASATreasure 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

352

310

295305 307

281

331

255 251

214222

252243

0

100

200

300

400

USD mill

Q3’16 Q2’18Q3’17 Q3’18 Q3’19

-8 -9

Treasure ASA

Market value of Wilhelmsen’s investment in Treasure ASA

17

Financial investmentsFinancial 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

22

106

0

100

200

300

400

Q3’17 Q3’19Q3’18

USD mill

Q3’16

267

Q2’18

260

226

251256

235247 250 248

302

241

203

219

98

-25 -22

Non-current financial investments

Current financial investments

Cash

Financial assets, investment portfolio and cash

18

wilhelmsen.com