Wilh. Wilhelmsen Holding ASAFirst quarter 2020

May 2020

USD mill - unless otherwise indicated Q1'20 Q4'19

Q-on-QChange Q1'19

Y-o-YChange

Total income 215 224 -4 % 199 8 %- of which operating revenue 213 225 -5 % 192 11 %- of which gain/(loss) on sale of assets 1 -1 7EBITDA 37 31 17 % 34 9 %Operating profit/EBIT 21 12 68 % 17 25 %Share of profit from associates -60 12 neg. 15 neg.Change in fair value financial assets -256 -25 -3Other financial income/(expenses) -48 3 8Profit/(loss) before tax/EBT -344 2 neg. 37 neg.Tax income/(expenses) 5 -9 -6Profit/(loss) for the period -339 -6 neg. 31 neg.Profit/(loss) to owners of the parent -284 2 neg. 29 neg.EPS (USD) -6,36 0,05 neg. 0,63 neg.Other comprehensive income -124 33 5Total comprehensive income -464 26 neg. 36 neg.Total comprehensive income owners of parent -404 33 neg. 33 neg.Total assets 2 765 3 293 -16 % 3 276 -16 %Equity parent 1 476 1 880 -21 % 1 853 -20 %Total equity 1 616 2 082 -22 % 2 051 -21 %Equity ratio 58 % 63 % -5 % 63 % -4 %

Good operational performance offset by fall in asset values USD 284 million in net loss

Total income up 8% year-over-year

USD 37 million EBITDA

• Revenue growth and improved operating margin

USD 60 million loss from associates

• Volume drop and non-cash items in WalleniusWilhelmsen

USD 305 million net financial losses

• Reduction in Hyundai Glovis market value

• Net loss on other investments and FX

USD -6.36 EPS

Steady income and improved operating margin for maritime services

Maritime services - total income and adjusted EBITDA margin *)

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

160

Q1 ’19

Q4 ’19

Total incomeUSD mill

EBITDAmargin (adj.)

Q1 ’17

Q1 ’18

Q1 ’20

18%

+2% -3%

Total income - continued operationAdj EBITDA margin (IFRS 16 from Q1’19)

*) Margin adjusted for main non-recurring items:Q1’17-Q2’18: Drew acquisition costQ2’19 Property sales gain

Income up 2% y-o-y• Total sale of marine products stable, but with regional impact

from covid-19 related measures • Stable income from agency services, but with fall in port calls

towards end of the quarter • Ship management income lifted by increase in vessels on full

technical management and new offshore wind activities

EBITDA up 28% y-o-y• Improvement supported by appreciation of USD • EBITDA margin of 18%

USD 26 million EBITDA

Main non-recurring gainMain non-recurring loss(size indicates USD effect)

Continued high activity level for supply services

Supply services - total income and adjusted EBITDA margin *)

0%

10%

20%

30%

40%

50%

0

20

40

60

80

100

Total incomeUSD mill

18%

EBITDAMargin (adj.)

Q1’18Q4’17 Q1’19 Q4 ’19 Q1 ’20

+22% -7%

Income up 22% y-o-y• Seasonally strong activity level at all main supply bases• Project activities related to planned NATO exercise

EBITDA down 25% y-o-y• Up 6% when adjusting for sales gains

USD 4 million loss from share of profit from associates

USD 13 million EBITDA

Sales gainTotal income (excl. sales gain)Adj. EBITDA margin (IFRS 16 from Q1’19)

*) Margin adjusted for sales gain:Q2’18: USD 2 million sales gainQ4’18: USD 1 million sales gainQ1’19: USD 6 million sales gainQ1’20: USD 1 million sales gain

Sales gain (size indicates USD effect)

Significant fall in financial asset valuesUSD 65 million share of loss in Wallenius Wilhelmsen

77

71

247

88

0

100

200

300

400

500

600

700

800

900

Q1’19

MUSD

Q1’20

807

Q4’1915

730

881

817

497

Cash

Hyundai Glovis (minority shareholders in Treasure ASA)

Current financial investments

Hyundai Glovis (equity holders of Wilhelmsen)Other non-current financial assets

Financial assets in holding and investments segment

560

475

372398

152

0

100

200

300

400

500

600

700

800

900MUSD

Q1’19 Q4’19 Q1’20

Wallenius Wilhelmsen

Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen

(reported as associate)

Share of profit/(loss) (MUSD)

Q1’19

8

Q2’19

1

Q3’19

13

Q4’19

17

Q1’20

-65

Steady operating cash flow for maritime services and supply services USD 124 million in cash and current financial investments

153

124

911

27

15

31.12.2019 Operatingother

Operatingmaritimeservices

Operatingsupply

services

26

Investingactivities

0

Dividendand

buybackparent

Net debt Otherfinancingactivities

31.03.2020

Cash fromoperating activities

Cash fromfinancing activities

Cash from investing activities

Cash flow(MUSD)

Balance sheet remains solid and with long-term debt maturity profile

Wilhelmsen group total assets and equity ratio

Equity ratio of 58%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

1 000

2 000

3 000

4 000

Q1’18 Q1’19

USD mill Equity ratio

Q2’18 Q4’18 Q1’20Q3’18 Q2’19 Q3’19 Q4’19

1.476

58%

2.765

Equity majorityTotal assetsEquity ratioEquity non-controlling

Debt maturity profile

0

50

100

150

200

250

300

Year 1

29

62

USD mill

Year 2

287

Year 3 Year 4 >4 years

211

11

Leasing (IFRS 16)Holding and investments (ex lease)

Maritime services (ex. lease)Supply services (ex.lease)

NOK 2.00 dividend per share

Dividend payments 1)

0

1

2

3

4

5

6

7

3.00

2.00

1.00

0.00

4.00

5.00

7.00

6.00

NOK/share Yield (%)

2016 2017 2018 2019 2020

2nd payment1st paymentDividend yield (right axis)

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

Dividend payment maintained but with reduced amount in order to secure a financially sound holding company in today uncertain environment

Cash to shareholders

0

10

20

30

40

50

60

70

2018

USDMillion

2016 20192017 2020

DividendBuy back

Covid-19 update

Ships services Ship management NorSea Group InvestmentsReduced cruse activities (10-15% of income), more modest reduction for other shipping

Operational issues related to port restrictions

Most staff working from home offices

Changed production line to hand sanitizers

Potential shift from full technical management to lay-up management of vessels

Crew changes a material operational issue

Low oil price, most likely resulting in reduced offshore exploration activities

All sites fully operational

Reduced global car volumes effecting Wallenius Wilhelmsen and Hyundai Glovis

Measures taken to recycle, lay-up, idle and slow steam ships

Necessary steps taken to safeguard health while maintaining operation

Outlook

The spread of covid-19 and the measures undertaken to contain it have reduced global economic

activity and values. For operating activities, the impact of the difficult market conditions will mainly

have an effect from the second quarter onwards.

The extent of future impact on operating income and result and on asset prices remains uncertain.

Wilhelmsen retains its robustness and capacity to meet this uncertainty.

Supplementary slides – First quarter 2020

Maritime servicesShips serviceShip management

Supply servicesNorSea Group

Holding and investmentsWallenius Wilhelmsen ASATreasure ASAFinancial investments

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

• Total income on par with the corresponding period last year. Activity level on regional basis influenced by measures to contain covid-19.

• EBITDA was up for the quarter, partly due to a depreciation of NOK versus USD.

Q1’20 highlights

129135

131139 140 138

131 131 133 130134 137 133

0

20

40

60

80

100

120

140

160

Q1’17

USD mill

Q1’20Q1’19Q1’18 Q4’19

0% -3%

Total income - ex safety businessTotal income

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

• An increase in ships on full technical management and new offshore wind activities continued to lift income on a year-over-year basis.

• EBITDA was stable for the quarter.

Q1’20 highlights

11 11 11 1110

10 1011

10

0

2

4

6

8

10

12

14

16

18

20

Q1’20Q1’17

USD mill

Q4’19Q1’19Q1’18

1616

1514

+39% -4%

Material sales gainNorSea Wind (50%)Total income (excl. material sales gain)

Total income

• All main supply bases experienced higher activity level and income than in the corresponding period last year. Also increase in project related activities provided to WilNor Governmental Services.

• EBITDA was stable for the quarter when adjusting for a sales gains.

Q1’20 highlights

NorSea GroupNorSea Group provides supply bases and integrated logistics solution to the offshore industryWilhelmsen owns ~75,2% of NorSea Group (as per 31 March 2020)

5256

70 70

79

59

6870

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

Q1’18

54

Mill. USD

Q4’17

1

Q4’19

6

Q1’19 Q1’20

65

+21% -7%

Material sales gainTotal income (excl. material sales gain)

Total income

• EBITDA of USD 130 million

• Ocean volume declined 20% y-o-y, due to covid-19 and slower market

• Landbased volumes also down, partly due to covid-19

• Decisive action taken to reduce cost and strengthen liquidity

• ARC awarded contract for transportation of household goods

Q1’20 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 BørsWilhelmsen owns ~37,8% of Wallenius Wilhelmsen ASA (as per 31 March 2020)

Photo: Wallenius Wilhelmsen

784

937979

745683

547 560

475

372 398

152

0

200

400

600

800

1 000

1 200USD mill

Q1’17 Q1’20

1.155 1.134

Q1’18 Q1’19 Q4’19

-408 -245

Wallenius Wilhelmsen ASAWilh. Wilhelmsen ASA

Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen ASA

• USD 224 million loss from change in fair value of Hyundai Glovis

• USD 12 million dividend income from Hyundai Glovis

• Treasure ASA ex dividend of NOK 0.40 per share 13 March, with payment in May

Q1’20 highlights

Treasure ASATreasure ASA holds a 12.04% ownership interest in Hyundai Glovis, and is listed on Oslo BørsWilhelmsen owns ~73.6% of Treasure ASA (as per 31 March 2020, adjusted for shares cancelled at AGM 2020)

Photo: Hyundai Glovis

295305 307

281

331

255 251

214 222

252 243 249

137

0

100

200

300

400USD mill

Q1’17 Q1’20Q1’18 Q1’19 Q4’19

-86 -112

Treasure ASA

Market value of Wilhelmsen’s investment in Treasure ASA

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 32 million in fair value loss from financial assets *)

• USD 15 million loss from investment management **)

Q1’20 highlights

Photo: Qube/Oslo Børs

71

0

100

200

300

400USD mill

12

77

Q1’17 Q1’18 Q1’19 Q4’19 Q1’20

260

302

267256 251

235 241

203219

248226

244

159

-60 -85

Non-current financial investmentsCurrent financial investmentsCash

Financial assets, investment portfolio and cash(Holding and investment segment excluding Treasure ASA / Hyundai Glovis)

*) Excluding currency gain/(loss) reported under comprehensive income**) Excluding currency gain/(loss)

wilhelmsen.com