Wilh. Wilhelmsen Holding ASA Third Quarter 2016 Thomas Wilhelmsen - - PowerPoint PPT Presentation

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Thomas Wilhelmsen – group CEO

• Wilh. Wilhelmsen Holding ASA

Third Quarter 2016

November 2016

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Agenda

1. Highlights for the third quarter 2. Financials 3. Prospects

Disclaimer: This presentation may contain 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 Holding group undertake no liability and make no representation or warranty for the information and expectations given in the presentation.

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WWH group

Highlights for the quarter

Continued slow growth in world economy Reduced income from previous quarter Letter of intent - WWASA restructuring Delivering on WMS strategy Second dividend of NOK 2.00 per share

Source: Wilh. Wilhelmsen

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WWH group

Stable return on capital employed

*Main “one-offs” (included):

• Q4’14: Pension related accounting gain
• Q1’15: Sales gain Hyundai Glovis
• Q3’15: Anti-trust accrual WWASA and impairment charge WMS
• Q4’15: Pension related accounting gain
• Q1’16: Sales gain related to WWASA logistics

1 000 2 000 3 000 4 000 5 000

0%

• 20%

15% 10% 5%

Q2’16 Q1’16* Q4’15* Q3’15* Q2’15 Q1 ’15* Q4 ’14* Q3 ’14 Q2 ’14

USD mill ROCE

Q3’16 Q1 ’14 Q4 ’13 Q3 ’13

Based on proportionate method

• Capital employed: Equity plus interest bearing debt (average for period)
• ROCE: EBT plus interest expenses / average capital employed

Capital employed ROCE

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Soft shipping market

• Seasonality
• Strike in Korea

Stable logistics performance

WWH and WWASA signed LOI with Rederi AB Soya and Wallenius Lines AB

WWASA group

Highlights for the quarter

Photo: High and heavy cargo Source: : Wilh. Wilhelmsen Photo: Automotive logistics Source: Wilh. Wilhelmsen

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WMS group

Highlights for the quarter

Challenging shipping and offshore environment Total income down 4% Improved EBIT margin

50 100 150 200 250 300 350 0% 2% 4% 6% 8% 10% 12% 14% EBIT margin USD mill Q3’16 Q3’15 Q3’13 Q3’14 Total income EBIT margin

WMS group –Total income and EBIT margin* *Main “one-offs”: Q4’15: Pension related accounting gain (not included) Q3’15: Impairment charge (not included) Q4’14: Pension related accounting gain (not included)

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SHIP MANAGEMENT PRODUCTS SHIPS AGENCY ENGINEERED SOLUTIONS INSULATION SAFETY

Sold to Trident Maritime Systems

• Agreement 10 August
• Transaction 3 October
• Sales price USD 64 mill.
• P&L effect USD -15 mill.

Joining forces with Survitec Group Ltd

• Proceeding according to plan
• Target completion Q4’16

Seek growth in remaining segments

• Organic growth
• Innovation
• Acquisitions/ partnerships

WMS group

Delivering on WMS strategy

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Holding and investments

Highlights for the quarter – Treasure ASA/Hyundai Glovis

Reduced contribution from Hyundai Glovis Renegotiation of shareholder agreement

• Formal counterpart changed to Treasure ASA
• Entitled to reduce ownership to 7% without prior

written consent

• Shareholder agreement will be terminated if
• wnership falls below 7%

Shareholding in Hyundai Glovis continues to be a strategic investment for Treasure ASA

Source: Hyundai Glovis Source: Hyundai Glovis

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Holding and investments

Highlights for the quarter – NorSea Group and financial investments

Continued contribution from NSG

• Weak oil and gas market
• Operating profit up

Financial investments

• Minor loss offset by Qube dividend

1 000 000 800 000 600 000 400 000 200 000 15% 10% 5% 0% Margin Q3 ’16 NOK mill Q3 ’15 Q3 ’14 Q3 ’13 Total income NorSea Group EBIT margin (weighted) Share of total income joint ventures

NorSea Group

Total income/EBIT margin

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USD mill Quarter Q3'16 Q2'16 Q3'16 Q2'16 Q3'16 Q2'16 Q3'16 Q2'16 Total income 418 452 225 235 18 32 656 713 Operating profit 32 42 19 17 11 17 62 77

Financial income/(expenses)

• 21
• 2
• 7
• 1

3

• 3
• 25

Tax income/(expense)

• 6
• 3
• 4
• 3

2 1

• 9
• 5

Profit/(loss)

26 18 13 8 12 21 51 47 Minority interests 8 6 3 5 11 11

Profit/(loss) after minority interests

18 12 12 7 9 16 40 36 Equity majority 1 161 1 142 280 253 519 490 1 960 1 885 Equity minority interests 294 288 207 204 501 492

Total Equity 1 455 1 430 280 252 726 695 2 461 2 377 WWASA group WMS group Holding and Investments Total

WWH group

Reduced operating profit

• Weak operating profit across all business segments
• Net profit benefiting from improved financials

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WWH group

Solid balance sheet

1 000 2 000 3 000 4 000 5 000 6 000

5% 40% 60% 55% 50% 45% 0%

Equity ratio*) Q3’16 USD mill

49%

Q2’16 Q1’16 Q4’15 Q3’15 Q2’15 Q1’15 Q4’14 Q3’14 Q2’14 Q1’14 Q4’13 Q3’13 Equity Equity ratio Total assets

*) Equity ratio: Equity in percent of total assets (equity method)

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WWH group

Healthy maturity profile

WWASA group 1 441 WMS group 319 Holding & investments 38

Maturity profile

• WWH facilities maturing in 2018/19
• WMS facilities maturing in 2019
• WWHI facility maturing in 2018
• WWASA mixed maturity

Leasing commitments 244 Other bank debt 357 Vessel mortgages 914 Bonds 283

Maturity profile

(USD mill.)*)

Split by source

(USD mill)*)

Split by business segment

(USD mill)*)

115 2016 107 2020 and later 607 2019 633 2018 335 2017

WWH/WWHI/WMS WWASA *) Equity method – excluding JVs

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WWH – Liquidity development

Positive contribution from operation

47 16 26 7 81 710 770 760 750 740 730 720 10 700 800 790 780

USD mill *)

Liquidity Q3’16

706

Other Tax

3

Interest and derivatives Net Capex Net financing

4

Div to share holders Dividend from JVs and ass.

1

JVs/ associates EBITDA Liquidity Q2’16

719

*) Equity method

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WWH group

Stable dividend per share

• Second dividend of NOK 2.00 per share to be paid 28 November (dividend ex date 18 November)
• First dividend of NOK 3.00 per share paid 13 May 2016

8,00 5,00 2,00 3,00 4,00 1,00 6,00 7,00

5,50 8,00 2011 5,50 2012 5,00 2013 5,00 2014 5,00 2015 2016 NOK/share

H2 H1

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WWH group prospects

The board expects the general business environment to remain soft, impacting most group activities and performance.

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