Wilh. Wilhelmsen Holding ASA Fourth quarter and full year 2019 - - PowerPoint PPT Presentation

Classified as Internal

• Wilh. Wilhelmsen Holding ASA

Fourth quarter and full year 2019

February 2020

Classified as Internal

Business update and outlook

Thomas Wilhelmsen, group CEO

Classified as Internal

The year 2019

Mixed markets

• Global trade headwinds
• General shipping markets improved
• Climate related measures starts making impact

Improvements in financial performance

• Operating profit up, reported and underlying
• Gain on financial assets

Drive to enable sustainable global trade Share buy-back 6% shareholder return

Classified as Internal

Developing the group

Maritime services Supply services and solutions Shipping and land-based logistics Ventures

• Wilh. Wilhelmsen Holding ASA

~ 75% 51% 100% 100% 100% 100% 50% 14% 50% 38% ~ 73% ~ 3%

Ships Service Ship Management Insurance Services

Developing the group

Classified as Internal

Developing the group portfolio

Maritime services Supply services and solutions Shipping and land-based logistics Ventures

• Wilh. Wilhelmsen Holding ASA

~ 75% 51% 100% 100% 100% 100% 50% 14% 50% 38% ~ 73% ~ 3%

Ships Service Ship Management Insurance Services

Developing the group portfolio

Classified as Internal

Our drive to enable sustainable global trade

Addressing ESG risks and opportunities in the maritime space

Responsible employer Decarbonization of shipping Renewable energy Marine litter and pollution

Classified as Internal

New technologies, services and products New technologies, services and products

Improved fuel efficiency 3D printing Market’s best chemicals Robotic hull cleaning New rope technology

Classified as Internal

Corona virus - Global port restrictions map

Classified as Internal

Outlook

The board expects a stable development of underlying operating performance for the combined group activities, but with normal seasonal variations. In the short term, measures to stop the spread of the coronavirus will have a negative impact on most business activities. Wilhelmsen is exposed towards global trade. Uncertainty remains

• n future development of global trade, including global economic

growth, trade restrictions and the environment. Wilhelmsen retains its robustness and capacity to meet, and potentially benefit from, such eventualities.

Classified as Internal

Financial performance

Christian Berg, group CFO

Classified as Internal

Maritime services Supply services Holding/ Investm. Elim./ discont. Group USD mill

• unless otherwise indicated

Q4'19 Q4'19 Q4'19 Q4'19 Q4'19 Total income 151 71 4

• 2

224

• of which operating revenue

151 72 4

• 2

225

• of which gain/(loss) on sale of assets
• 1

EBITDA 23 12

• 3

31 Operating profit/EBIT 14 3

• 4

12 Share of profits from associates 1

• 5

17 12 Change in fair value financial assets

• 25
• 25

Other financial income/(expenses) 4

• 5

4 3 Tax income/(expenses)

• 10

2

• 9

Profit/(loss) from continued operations 9

• 8
• 8
• 6

Discontinued operations Profit/(loss) for the period 9

• 8
• 8
• 6

Profit/(loss) to owners of the parent 8

• 6

2 EPS (USD) 0,05 Other comprehensive income 33 Total comprehensive income 26 Total comprehensive income owners of parent 33 Total assets 887 710 1 753

• 57

3 293 Equity parent 204 154 1 523 1 880 Total equity 203 208 1 672 2 082 Equity ratio 23 % 29 % 95 % 0 % 63 %

Q4’19: Reduced operating profit and loss on investments

USD 2 million in net profit

Total income up 2% from previous quarter USD 31 million EBITDA

• Steady underlying performance
• Quarter down due to several minor adjustments

USD 12 million share of profit from associates

• Increased net profit in Wallenius Wilhelmsen ASA
• Reversal of Q1 gain in NorSea Group

USD 22 million net financial loss

• Reduction in Hyundai Glovis value
• Unrealized FX gain from appreciation of USD

USD 0.05 EPS

Classified as Internal

Maritime services Supply services Holding/ Investm. Elim./ discont. Group USD mill

• unless otherwise indicated

FY19 FY19 FY19 FY19 FY19 Total income 591 255 11

• 7

850

• of which operating revenue

582 249 11

• 7

836

• of which gain/(loss) on sale of assets

9 6 14 EBITDA 103 59

• 12
• 1

149 Operating profit/EBIT 73 22

• 17

78 Share of profits from associates 4 6 39 49 Change in fair value financial assets

• 27

61 34 Other financial income/(expenses)

• 24
• 19

26

• 17

Tax income/(expenses)

• 12
• 3

1

• 15

Profit/(loss) from continued operations 15 5 109 130 Discontinued operations Profit/(loss) for the period 15 5 109 130 Profit/(loss) to owners of the parent 14 4 96 114 EPS (USD) 2,46 Other comprehensive income

• 3

Total comprehensive income 126 Total comprehensive income owners of parent 111 Total assets 887 710 1 753

• 57

3 293 Equity parent 204 154 1 523 1 880 Total equity 203 208 1 672 2 082 Equity ratio 23 % 29 % 95 % 0 % 63 %

Year 2019: EBITDA, associates, investments all up

USD 114 million net profit for the year

Total income down 2% from 2018 USD 149 million EBITDA

• Margin improvement and sales gains
• Including USD 37 million IFRS 16 impact

USD 49 million share of profit from associates

• Mainly Wallenius Wilhelmsen ASA

USD 34 million net financial gain

• Increase in Glovis and Qube value
• Full write down of Survitec investment

USD 2.46 EPS

Classified as Internal

Steady increase in income continued for maritime services

Maritime services - total income and adjusted EBITDA margin *)

0% 5% 10% 15% 20% 25% 50 100 150 250 Q4 ’17 Total income USD mill Q4 ’18 EBITDA margin (adj.) Q4 ’16 Q3 ’19 15% Q4 ’19 +7% +1% Total income - discontinued operation and gain/(loss) on sale of assets Total income - continued operation Adj EBITDA margin 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 1% q-on-q and up 7% y-o-y

• Increase in sale of marine products continued into Q4, partly

IMO 2020 related

• Stable income from agency services
• Ship management 2H income lifted by increase in vessels on

full technical management and new offshore wind activities EBITDA down 28% q-on-q

• Reduction partly due to strong Q3 and partly due to several

non-material cost items and provisions in Q4

• EBITDA margin of 15%

USD 23 million EBITDA in Q4 and USD 103 million for the year 2019

Main non-recurring gain Main non-recurring loss

(size indicates USD effect)

Classified as Internal

Steady offshore activity level for supply services

Supply services - total income and adjusted EBITDA margin *)

0% 10% 20% 30% 40% 50% 20 40 60 80 100 17% Total income USD mill EBITDA Margin (adj.) Q4 ’17 Q4’18 Q3 ’19 Q4 ’19

• 13%

3%

Income up 3% q-o-q and down 13% y-o-y

• Continued strong activity at Norwegian supply bases, with less

than normal slowdown entering the winter season

• Reduction y-o-y due to 2018 services related to military exercise

EBITDA down 18% q-o-q

• Negative adjustment in asset values

USD 5 million loss from share of profit from associates

• Reversal of Q1 sales gain in associate

USD 12 million EBITDA in Q4 and USD 59 million for the year 2019

Sales gain Total income (excl. sales gain)

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

*) 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)

Classified as Internal

USD 17 million share of profit in Wallenius Wilhelmsen ASA

Financial assets remain exposed to Hyundai Glovis share price – USD 25 million accounting loss in Q4

31 102 115 412 148

100 200 300 400 500 600 700 800 900 MUSD

807

Q4’18 Q3’19 Q4’19 +79

• 10

Hyundai Glovis (equity holders of Wilhelmsen) Hyundai Glovis (minority shareholders in Treasure ASA) Cash Current financial investments Other non-current financial assets

Financial assets in holding and investments segment

398

100 200 300 400 500 600 700 800 900 MUSD Q4’18 Q3’19 Q4’19 149 +26

Wallenius Wilhelmsen

Market value of Wilhelmsen’s investment in WalWil

(reported as associate)

Wilhelmsen share of profit (MUSD) Q4’18 1 Q1’19 8 Q2’19 1 Q3’19 13 Q4’19 17

Classified as Internal

Year 2019: Positive cash from operating activities and investments

USD 56 million to parent company shareholders through dividend and buyback own shares

140 153 83 32 17 81 56 68 41 Dividend and buyback parent Other financing Net debt 31.12.2018 Investing activities Operating maritime services Operating supply services Operating

• ther

31.12.2019

Cash from

• perating activities

Cash from financing activities Cash from investing activities

Cash flow

(MUSD)

Classified as Internal

Solid balance sheet and long-term debt maturity profile

Wilhelmsen group total assets and equity ratio

Equity ratio of 63%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 000 2 000 3 000 4 000 1.821 Equity ratio 63% USD mill Q4’17 Q1’18 Q3’18 Q2’18 Q4’18 Q1’19 Q2’19 1.936 Q3’19 1.880 Q4’19 3.079 3.390 3.293 Total assets Equity majority Equity non-controlling Equity ratio

Debt maturity profile

20 40 60 80 100 120 140 160 180 200 220 240 260 Year 2 USD mill Year 3 Year 1 Year 4 92 >4 years 40 40 251 252 Leasing (IFRS 16) Supply services (ex.lease) Holding and investments (ex lease) Maritime services (ex. lease)

Classified as Internal

Board proposes first dividend of NOK 3.00 per share

Dividend payments 1)

1 2 3 4 5 6 7 0.00 5.00 1.00 2.00 3.00 4.00 6.00 7.00 NOK/share Yield (%) 2016 2017 2018 2019 2020 Board authority - 2nd payment 1st payment Dividend yield (right axis) 2nd payment

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

Potential second dividend of up to NOK 3.00 per share

Cash to shareholders

10 20 30 40 50 60 70 2018 USD Million 2017 2016 2019 2020 Buy back Dividend Potential 2nd dividend

Classified as Internal

Thank you!

Supplementary slides – Fourth 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, maritime logistics and ships agency Ships service is fully owned by Wilhelmsen

• Total income up 2% from the third quarter. Sale of marine

products remained strong, partly related to IMO 2020.

• Reduced EBITDA mainly due to a net negative adjustment in

inventory and other asset values, and in customer liabilities. Q4’19 highlights

129 135 131 139 140 138 131 131 133 130 134 137 20 40 60 80 100 120 140 160 180 200 Q3’19 USD mill Q4’18 Q4’16 Q4’17 Q4’19 158 +4% +2% Income safety business (incl. sales gain) - sold Q4’16 Total income - ex safety business

Total income

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

• An increase in ships on full technical management and new
• ffshore wind activities continued to lift income on a year-
• ver-year basis.
• EBITDA was down mainly due to cost related to the new
• ffshore wind activities.

Q4’19 highlights

12 11 11 11 11 10 10 10 11 10 2 4 6 8 10 12 14 16 18 20 Q3’18 USD mill 6 16 Q4’16 Q4’19 Q4’18 Q4’17 16 15 +36%

• 6%

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

Total income

• Income up 2% from previous quarter, with less than normal

slowdown entering the winter season.

• EBITDA was down for the quarter, partly due to a negative

adjustment in asset values and reserves.

Q4’19 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 31 December 2019)

52 56 70 70 79 59 68 70

0,00 0,05 0,10 0,15 0,20 0,25 0,30 0,35 0,40 0,45 0,50 0,55 0,60 0,65 0,70 0,75 0,80 0,85 0,90 0,95 1,00

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80

• Mill. USD

Q4’17 Q4’18 Q3’19 6 Q4’19 54

• 11%

+4% Material sales gain Total income (excl. material sales gain)

Total income

• Adjusted EBITDA of USD 194 million
• Ocean volume declined 8% y-o-y
• HMG contract renewed at stable rates in Q4
• Successful transition to IMO 2020
• Proposed total 2020 dividend of up to USD 14 cents per share

Q4’19 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 31 December 2019)

Photo: Wallenius Wilhelmsen

627 784 937 979 745 683 547 560 475 372 398 200 400 600 800 1 000 1 200 USD mill 1.155 1.134 Q4’16 Q4’17 Q4’18 Q3’18 Q4’19

• 149

+26 Wallenius Wilhelmsen ASA

• Wilh. Wilhelmsen ASA

Market value of Wilhelmsen’s investment in Wallenius Wilhelmsen ASA

• USD 28 million loss from change in fair value of Hyundai Glovis
• Proposed dividend of NOK 0.40 per share

Q4’19 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 31 December 2019)

Photo: Hyundai Glovis

310 295 305 307 281 331 255 251 214 222 252 243 249 100 200 300 400 Q4’16 USD mill Q4’19 Q4’17 Q4’18 Q3’18

+35 +6

Treasure ASA

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 3 million in fair value gain from financial assets
• USD 3 million gain from investment management

Q4’19 highlights

Photo: Qube/Oslo Børs

27 115 100 200 300 400 102 Q3’18 Q4’17 Q4’16 USD mill Q4’18 Q4’19 219 250 260 302 203 241 267 251 256 235 248 226 244

+41 +18

Non-current financial investments Current financial investments Cash

Financial assets, investment portfolio and cash

(excluding Treasure ASA / Hyundai Glovis)

wilhelmsen.com