Wilh.Wilhelmsen Second quarter 2015 Wilh.Wilhelmsen ASA /// 6 - - PowerPoint PPT Presentation

Wilh.Wilhelmsen

Second quarter 2015

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Wilh.Wilhelmsen ASA /// 6 August 2015

Jan Eyvin Wang, President and CEO

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> Disclaimer

This presentation contains 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 ASA group undertake no liability and make no representation or

warranty for the information and expectations given in the presentation.

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> Healthy growth in car sales

But uncertainty in emerging markets

Region Q2 2015 Q1 2015 QoQ change Q2 2014 YoY change 2015 FY 2016 FY 2016 FY/ 2015 FY N America 5,43 4,63 17 % 5,23 4 % 19,90 20,30 2 % Europe* 4,01 4,07

• 1 %

3,89 3 % 15,00 15,40 3 % Oceania 0,33 0,31 5 % 0,32 0 % 1,20 1,30 8 % BRICs 7,58 8,13

• 7 %

7,84

• 3 %

32,90 35,00 6 % .....Brazil 0,60 0,66

• 8 %

0,82

• 26 %

3,30 3,30 0 % .....Russia 0,39 0,38 1 % 0,63

• 38 %

1,60 1,60 0 % .....India 0,71 0,79

• 11 %

0,66 8 % 3,30 3,70 12 % .....China 5,88 6,30

• 7 %

5,73 3 % 24,70 26,40 7 %

*Excluding Russia and Turkey Source; WWL GMI

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> Korean car exports are holding up

While Japanese exports is at a low level

Source; JAMA, KAMA, WWL GMI

200 400 600 800 1 000 1 200 1 400 1 600 1 800 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Japan Korea

Quarterly Light Vehicle Export from Japan and Korea ('000 units)

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22 20 14 16 12 18 10 8 6 4 2 Q3 11 Q2 11 Q4 10 Q3 10 Q2 10 Q1 10 Q4 09 Q1 11 Q2 09 Q1 09 Q4 08 Million Cbm Q3 09 Q1 13 Q2 12 Q3 12 Q4 12 Q1 12 Q4 11 +6%

• 5%

Q2 15 Q1 15 Q4 14 Q3 14 Q2 14 Q1 14 Q4 13 Q3 13 Q2 13

Group volumes up from a weak first quarter

Volumes were up 6% q-o-q and down 5% y-o-y

Prorated ocean volumes – WW group (100%)

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Index

Higher volumes but suboptimal cargo mix

High and Heavy

• Oceania up from a weak first quarter due to

cargo restrictions

• Construction volumes to North America

remained strong, however weaker than last quarter Auto

• All trades saw a lift in volumes, but Asia

to Europe remained flat

Unprorated ocean volumes – WWL and EUKOR (100%)

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> Tonnage

Optimizing fleet

• EUKOR ordered 2 post panamax

vessels for delivery in 2017

• MV Thalatta delivered in April
• 8 total group deliveries 2016-17
• Net decrease of three vessels from last

quarter

MV Thalatta

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> Fleet operation

• Total WW off-hire in Q2; 182 days (Q1 2015; 8 days)

– Planned 71.5 days – Unplanned 110.5 days

• Normal planned off-hire during a year ~100 days

(7 dry dockings)

• Bunker price increase during the quarter led to

reduced margins

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• 30 July, Wallenius Wilhelmsen Logistics (WWL), owned 50% by

Wilh.Wilhelmsen ASA, reached a settlement agreement with the Competition Commission in South Africa.

• If the settlement is confirmed by the Competition Tribunal of South Africa, WWL

will pay an administrative penalty in the amount of R95 695 529 (approx. USD 7.7 million).

• WWL made an accrual for the penalty in the fourth quarter 2014. WWASA’s 50%

share of the fine will therefore not have an accounting effect in 2015.

Anti trust investigation

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> Prospect

Based on the market outlook, the WWASA board expects seasonally lower auto volumes and continued soft high and heavy volumes in the second half of 2015. Logistics activities are anticipated to be on par with the first half of 2015.

• Wilh. Wilhelmsen ASA

Second quarter 2015

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Wilh.Wilhelmsen ASA 6 August 2015

Benedicte B. Agerup, CFO

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> WWASA Group – Key financials

Underlying (adjusted) EBIT in line with previous quarter

• Total income reported - 2% q-o-q, - 13% y-o-y
• EBIT reported - 25% q-o-q, + 29% y-o-y
• EBIT adjusted in line with Q1
• Lifting capacity reduced by 2% and one newbuilding delivered in April

600 500 400 300 200 100 700 596 682 Q1 609 637 624

• 2%

Q4 Q3 650 Q2 USD mill 100 80 60 40 20 USD mill 76

• 25%

Q4 Q3 66 Q2 73 57 Q1 98 54 2015 2014

Total income Total EBIT

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> WWASA EBIT bridge q-o-q

Q1 2015 Q2 2015

Underlying profit stable q-o-q

26 98 72 10 20 30 40 50 60 70 80 90 100 Gain on share reduction in Hyundai Glovis EBIT reported Q1 2015 MUSD EBIT adjusted Q1 2015 74 73 EBIT adjusted Q2 2015 Sales loss EBIT reported Q2 2015 1

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WW ASA Group USD mill 2015 Q2 2015 Q1 2015 YTD 2014 YTD 2014 Q2 2014 FY Operating income 583 573 1 156 1 292 667 2 525 Gain on sale of assets 26 27 Share of profits from JV's and associates 14 9 23 26 15 66 Total income 596 609 1 205 1 318 682 2 592 EBITDA 113 136 249 185 95 413 Depreciation and impairments (40) (38) (78) (75) (38) (160) EBIT 73 98 171 111 57 253 Financial income/(expense) 4 (46) (42) (47) (31) (131) Profit/(loss) before tax 77 52 129 64 26 122 1 1 1 1 1 Net profit 1) 70 56 126 56 25 166 Earnings per share (USD) 0.32 0.26 0.57 0.26 0.11 0.75

1) after minority interest

WWASA Group - Profit and Loss 2015

Proportionate method

1st quarter 2015: Sales gain of USD 26 million from a reduction in the shareholding of Hyundai Glovis from 12.5% to 12.0%

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> WWASA EBITDA adjusted for non-recurring items

In line with previous quarter and same period last year

114 110 106 102 116 91 121 118 120 104 120 150 154 135 50 100 150 200 Q1 2014 Q4 2014 Q1 2015 4%

• 2%

USD mill Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Q3 2012 Q3 2014 Q2 2014 Q2 2012 Q1 2012 Q2 2015

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> WWASA Shipping – Key financials

Performance on par with previous quarter

• Total income reported + 2% q-o-q, - 13% y-o-y
• EBIT reported - 3% q-o-q, + 56% y-o-y
• Higher shipped volumes but unfavourable cargo mix
• Higher net bunker costs and negative impact from off hire q-o-q

600 500 400 300 200 100 499 460 USD mill 502 +2% Q4 Q3 512 Q2 470 539 Q1 10 20 30 40 50 70 60 Q4

• 3%

55 USD mill 47 Q3 Q2 58 37 Q1 59 37 2015 2014

Shipping income Shipping EBIT

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> WWASA Shipping – EBIT margin

Shipping margins continue to be under pressure

+ Higher volumes transported

• Reduced BAF surcharges

+ Lower G&A cost base

• Weaker cargo and trade mix
• Negative impact from off hire

0.0 % 2.0 % 4.0 % 6.0 % 8.0 % 10.0 % 12.0 % 14.0 % 16.0 % 18.0 %

• 100

200 300 400 500 600 700 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 USD mill Operating revenue - Shipping EBIT margin EBIT margin adjusted

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> WWASA net bunker costs (WWASA share)

• 41

45

• 85
• 55

20

• 75

Voyage costs Operating income EBIT MUSD Voyage costs Operating income EBIT

Q1 2015 Q2 2015

Negative EBIT impact MUSD -14 q-o-q

EBIT margin negatively impacted by increased net bunker costs q-o-q

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> WWASA Logistics – Key financials

Underlying EBIT improved q-o-q

• Total income reported -14% q-o-q, - 9% y-o-y
• EBIT reported - 56% q-o-q, - 22% y-o-y
• Adjusted EBIT higher q-o-q
• Increased contribution, primarily driven by Hyundai Glovis
• Market value of 12.0% ownership in Hyundai Glovis USD was 816 million on 30 June 2015

140 160 20 40 120 100 60 80 Q2 134 155 144 Q1 147 USD mill 126 Q3 Q4 143

• 14%

45 40 35 30 5 15 20 10 25 22 Q1 40 20 USD mill 14 Q2 18 22 Q3 Q4

• 56%

2015 2014

Logistics income Logistics EBIT

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> WWASA Group – Financial income (expense)

Improved financial income q-o-q

• Weaker result from investment management
• Stable net interest expenses
• Unrealized gains on interest rate- and currency derivatives
• Unrealised net currency revaluation losses from non USD assets/liabilities

USD mill 2015 Q2 2015 Q1 2014 Q1 2014 FY Net financial items (0.8) 7.8 5.0 (0.5) Net interest expenses (23.3) (22.6) (18.0) (91.2) Interest rate derivatives - unrealised 18.5 1.4 (5.6) (16.8) Net financial - currency 8.6 (33.4) 2.9 (22.0) Net financial derivatives bunkers 0.9 0.7 (0.2) (0.3) Financial income/(expense) 4.0 (46.1) (16.0) (130.9)

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USD mill Assets Non current assets

3 080

88 % 2 995 86 % 2 955 88 % Current assets (excl liquid funds)

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1 % 61 2 % 23 1 % Liquid funds

408

12 % 408 12 % 375 11 % Total assets

3 519

100 % 3 464 100 % 3 353 100 % Equity & liabilities Equity

1 806

51 % 1 761 51 % 1 707 51 % Non current interest-bearing debt

1 277

36 % 1 231 36 % 1 236 37 % Other non current liabilities

249

7 % 296 9 % 264 8 % Current liabilities

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5 % 176 5 % 145 4 % Total equity and liabilities

3 519

100 % 3 464 100 % 3 353 100 % 30.06.2015 31.12.2014 31.03.2015

WWASA Group – Balance Sheet

Strong balance sheet

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> WWASA Group - Committed CAPEX, incl. dry-docking

Stable CAPEX the next two years

297 145 152

• 141
• 150
• 100
• 50

50 100 150 200 250 300 2015 FY USD mill Acc 2015-2016 2016 FY Paid capex 1st half 2015

• One vessel delivered 7. April 2015, MV Thalatta

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> WWASA Group – Liquidity development

Continued high liquidity buffers

40 73 15 28 38 33 85 420 410 400 490 480 470 460 450 440 10 430 510 530 500 520 408 Liquidity Q2 2015 408 Liquidity Q1 2015 EBITDA*) JV’s/ associates Dividend received from JV’s and ass. Capex USD mill Net financing Interest Dividend to shareholders

*) Equity consolidation

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50 100 150 200 250 300 350 400 450 2015 52 USD mill 2020 -> 421 2019 344 2018 286 2017 101 2016 189

WWASA Group – interest bearing debt

Sound maturity profile

Tax leases Banks Bonds Export financing

• New debt in Q2 to finance second post

panamax vessel Thalatta.

• Ordinary instalments of USD 26 million

in Q2.

• Refinancing of three vessels previously
• n UK tax lease to ordinary bank

financing in July.

• Renewal of revolving credit facility of

USD 50 million in July.

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> WWASA Group – Semi-annual dividend per share

Dividend of NOK 1.00 per share in H1 approved by AGM

1,0 1,0 1,0 0,8 4,0 1,0 0,7 0,5 0,5 0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 H1 2015 H2 2014 H1 2014 H2 2013 H1 2013 H2 2012 H1 2012 H2 2011 H1 2011 NOK/share

• Dividend payment of

NOK 220 million 7 May 2015.

• Board of directors

authorized to pay additional dividend up to NOK 1.25 per share.

• The autorization is valid

until next AGM, no later than 30 June 2016.

Thank you!

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