Wilh. Wilhelmsen Holding ASA Second Quarter 2015 Nils P Dyvik group - - PowerPoint PPT Presentation

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Nils P Dyvik – group CFO

• Wilh. Wilhelmsen Holding ASA

Second Quarter 2015

6 August 2015

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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

Stable total income Positive underlying EBIT development

• Reported EBIT down 16% q-o-q
• Adjusted EBIT up 7% q-o-q
• Seasonality (WWASA, NSG)
• USD (WMS)

Reduced net financial expenses Stable EPS (USD 1,43)

80 100 120 140 280 20 40 60 USD mill Q2’12 Q2’13 Q2’14 Q2’15 EBIT

*Main “one-offs”:

• Q3’12: Sales gain Hyundai Glovis
• Q4’14: Pension related accounting gain
• Q1’15: Sales gain Hyundai Glovis

WWH EBIT*

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WWH group

Key segment information

Positive underlying development in operating profit*

*Main “one-offs included”:

• Q1’15: Sales gain Hyundai Glovis

USD mill Quarter Q2'15 Q1'15 Q2'15 Q1'15 Q2'15 Q1'15 Q2'15 Q1'15 Total income 596 609 254 257 10 6 854 866 Operating profit 73 98 28 27 2 (2) 103 123

Financial income/(expenses) 4

• 46
• 13

7 1 4

• 8
• 35

Tax income/(expense)

• 7

5

• 4
• 9

2

• 9
• 4

Profit/(loss)

70 57 11 25 5 2 86 84 Minority interests 19 16 1 20 16

Profit/(loss) after minority interests

51 41 11 25 5 2 66 68

Total equity

1806 1761 278 286 338 317 2422 2364 Minority 492 480 2 3 494 483

Equity after minority interests 1 314 1 281 276 284 338 317 1 928 1 881 Total WWASA group WMS group Holding and Investments

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WWH group

Return on capital employed **)

*Main “one-offs”:

• Q3’12: Sales gain Hyundai Glovis
• Q4’14: Pension related accounting gain
• Q1’15: Sales gain Hyundai Glovis

1 000 2 000 3 000 4 000 5 000

0% 5% 10% 15% 20% 25%

ROCE USD mill

Q2’15 Q1 ’14 Q3 12* Q3 ’14 Q4 ’12 Q2 ’14 Q2 ’13 Q4 ’14* Q3 ’13 Q1 ’13 Q2 ’12 Q1 ’15* Q4 ’13

**Based on proportionate method

• Capital employed: Equity plus interest bearing debt
• ROCE: EBT plus interest expenses / average capital employed

Capital employed (net) ROCE WWH

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WW ASA group

Highlights for the quarter

Stable contribution from shipping

• Increased auto volumes – mainly seasonal
• Unfavorable cargo and trade mix due to soft

H&H volumes

• Increase in net bunker cost
• Increased scheduled and non-scheduled off hire

Improved contribution from logistics

• Improved result from Hyundai Glovis
• WWL activities remained stable

Ongoing antitrust investigation

• RSA settlement

Crew on deck, Historic award to MW Taiko crew Source: WWASA

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WMS group

Highlights for the quarter

Flat total income

• Reduced WSS income due to currency effect
• Improved WTS income

Strong EBIT level

• Continued positive development across all

business areas

• Positive impact from currency (strong USD)

Ongoing restructuring process of WTS

• Process slower than expected

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*Main “one-offs”: Q2’14: Sales gain (included) - Q4’14: Pension related accounting gain (not included)

50 100 150 200 250 300 0% 2% 4% 6% 8% 10% 12% USD mill EBIT margin Q4 2013 Q4 2012 Q2 2013 Q2 2014* Q2 2012 Q2 2015 Q4 2014* Total income EBIT margin

**Clarksea Index is a weighted quarterly average of earnings by tankers, bulkers, containerships and gas carriers (Source: Clarkson).

WMS group –Total income and EBIT margin*

WMS

Currency exposure – EBIT

Sale to operating fleet

• Income:
• USD ~60%
• Expenses:
• USD ~25%
• Main other: EUR, NOK, SGD

Project related activities

• Mainly hedged on contract basis

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WMS group

Ships service

Total income and daily income per vessel

Ship management

Total income and vessels served

Technical solutions

Total income and order reserve WSS global fleet penetration:) 50,19% in Q2’15 (50,14% Q1’15

50 100 150 200 15 30 45 60

Q2’12

USD mill USD/day

Q2’15 Q2’14 Q2’13

Total income Daily sales pr merchant vessel (right scale)

4 8 12 16 150 300 450 600

Q2’13 Q2’12 Q2’14

Vessels

Q2’15

USD mill

Total income Vessels served (right scale)

20 40 60 80 100 100 200 300 400 500

Q2’12

USD mill USD mill

Q2’14 Q2’13 Q2’15

Order reserve (right scale) Total income

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Holding and Investments

Highlights for the quarter

Positive development in NorSea Group

• Normal seasonality
• Satisfactory supply base activity in Norway
• Loss on Viking Fighter (spot market)
• Expanding within offshore wind

Fluctuating equity market

• Qube share value down (USD 119 million *))
• Flat financial investments (USD 88 million *))

*) As per 30.6.2015

Helgelands base, Source NSG 10% 25% 15% 5% 0% 20% 750 250 1 250 500 1 000 Q1 ’14 Q4 ’13 Q4 ’12 Q3 ’13 Q1 ’13 Q3 ’14 Q2 ’13 Q2 ’14 Q3 12 Margin Q4 ’14 Q2 ’15 Q1 ’15 NOK mill Operating margin (weighted) Operating revenue NorSea Group Share of operating revenue joint ventures

NorSea Group

Operating revenue and

• perating margin

11

USD mill Q2'15 Q1'15

Net financial items 13

Investment management

• 2

13 Interest income 2 2 Other financial items 1

• 2

Interest expenses

• 17
• 18

Interest rate derivatives - realised

• 10
• 8

Interest rate derivatives - unrealised 19 1 Net financial - currency

• 1
• 24

Net financial derivatives bunkers 1 1 Financial income/(expense)

• 8
• 35

WWH group

Financial income/(expenses)

1. Loss from Investment management 2. Net interest rate derivatives gain – WWASA 3. Net currency financial – WWASA gain, WMS loss 2 1 3

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WWH group

Equity ratio *)

1 000 2 000 3 000 4 000 5 000 6 000 55% 60% 50% 45% 35% 5% 40% 0%

Q3 ’13 Q2 ’13 Q1 ’14 Q1 ’13 Q4 ’12 Q4 ’13 Equity ratio Q3 ’14 Q4 ’14 Q1 ’15 USD mill Q3 12 Q2 ’14 Q2’15 Q2 ’12 Equity Total assets Equity ratio

*Equity ratio: Equity in percent of total assets

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WWH group – Liquidity development Q2’15

(Equity method)

44 84 19 18 38 121 27 36 720 880 780 820 860 760 740 800 840

Dividend to shareholders Liquidity Q2 2015 EBITDA Interest Dividend received from JV’s/ ass.

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Capex Other

723 723

Tax Net financing Liquidity Q1 2015 JV’s/ associates

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WMS and H&I – Liquidity development Q2’15

(Equity method)

9 39 27 33 200 150 250 USD mill 198

EBITDA Liquidity Q1 2015 Liquidity Q2 2015 Dividend to shareholders

156

Capex Other

20 39 18 250 200 150

Dividend from WMS Other Dividend to shareholders EBITDA

117 2

Dividend from WWASA

158 2

Liquidity Q2 2015

USD mill

Liquidity Q1 2015

WMS group Holding & Investments

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WWH group

Interest bearing debt (Equity method)

WWASA group 1 339 WMS group 318 Holding & investments 35

Maturity profile

• WWH facilities maturing in 2017/18
• WMS facilities maturing in 2018/19
• WWHI facility maturing in 2017
• WWASA mixed maturity

Export financing 208

• Fin. leases

82 Bank debt 1 152 Bonds 304

Maturity profile

(USD mill.)

Split by source

(USD mill)

Split by business segment

(USD mill)

2019 and later 1 082 2018 286 2017 123 2016 189 2015 65 WWASA WWH/WWHI/WMS

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WWH ASA

Dividend per share

• Dividend of NOK 3.00 per share was paid 7 May 2015
• Board authorized to approve further dividend of up to maximum NOK 3.00 per share

2 4 6 8

NOK/share 2014 5.00 2013 5.50 2011 2012 5.50 3.00 8.00 2010 5.50 2015

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WWH group prospects

The board expects a stable activity level for the group, but with a seasonal slowdown in the second half of 2015.

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