Wilh. Wilhelmsen Holding ASA Third Quarter 2016 Thomas Wilhelmsen – group CEO 1 November 2016
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. 2
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 3
WWH group Stable return on capital employed ROCE USD mill 15% 5 000 4 000 10% 3 000 5% 2 000 0% 1 000 -20% 0 Q3 ’13 Q4 ’13 Q1 ’14 Q2 ’14 Q3 ’14 Q4 ’14* Q1 ’15* Q2’15 Q3’15* Q4’15* Q1’16* Q2’16 Q3’16 Capital employed ROCE *Main “one -offs ” (included): Based on proportionate method • Q4’14: Pension related accounting gain • Capital employed: Equity plus interest bearing debt (average for period) • Q1’15: Sales gain Hyundai Glovis • ROCE: EBT plus interest expenses / average capital employed • Q3’15: Anti-trust accrual WWASA and impairment charge WMS • Q4’15: Pension related accounting gain • Q1’16: Sales gain related to WWASA logistics 4
WWASA group Highlights for the quarter Soft shipping market • Seasonality • Strike in Korea Stable logistics performance Photo: High and heavy cargo Source: : Wilh. Wilhelmsen WWH and WWASA signed LOI with Rederi AB Soya and Wallenius Lines AB Photo: Automotive logistics Source: Wilh. Wilhelmsen 5
WMS group Highlights for the quarter WMS group – Total income and EBIT margin* EBIT USD mill margin 350 14% Challenging shipping and offshore 300 12% environment 250 10% 200 8% Total income down 4% 150 6% 100 4% Improved EBIT margin 50 2% 0 0% Q3’13 Q3’14 Q3’15 Q3’16 Total income 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 ) 6
WMS group Delivering on WMS strategy SHIPS SHIP ENGINEERED INSULATION SAFETY PRODUCTS AGENCY MANAGEMENT SOLUTIONS Seek growth in remaining Sold to Trident Maritime Joining forces with segments Systems Survitec Group Ltd • • • Organic growth Agreement 10 August Proceeding according to plan • • • Target completion Q4’16 Innovation Transaction 3 October • • Sales price USD 64 mill. Acquisitions/ partnerships • P&L effect USD -15 mill. 7
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 Source: Hyundai Glovis • Shareholder agreement will be terminated if ownership falls below 7% Shareholding in Hyundai Glovis continues to be a strategic investment for Treasure ASA Source: Hyundai Glovis 8
Holding and investments Highlights for the quarter – NorSea Group and financial investments NorSea Group Total income/EBIT margin Continued contribution from NSG NOK mill Margin • Weak oil and gas market 1 000 000 15% • Operating profit up 800 000 10% 600 000 400 000 5% 200 000 0 0% Q3 Q3 Q3 Q3 ’13 ’14 ’15 ’16 Financial investments Share of total income joint ventures • Minor loss offset by Qube dividend Total income NorSea Group EBIT margin (weighted) 9
WWH group Reduced operating profit Holding and USD mill WWASA group WMS group Total Investments Q3'16 Q2'16 Q3'16 Q2'16 Q3'16 Q2'16 Q3'16 Q2'16 Quarter Total income 418 452 225 235 18 32 656 713 Operating profit 32 42 19 17 11 17 62 77 Financial income/(expenses) 0 -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 0 0 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 0 0 207 204 501 492 Total Equity 1 455 1 430 280 252 726 695 2 461 2 377 • Weak operating profit across all business segments • Net profit benefiting from improved financials 10
WWH group Solid balance sheet USD mill Equity ratio*) 6 000 60% 5 000 55% 49% 50% 4 000 45% 3 000 40% 2 000 1 000 5% 0 0% Q3’13 Q4’13 Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Total assets Equity *) Equity ratio: Equity in percent of total assets (equity method) Equity ratio 11
WWH group Healthy maturity profile Split by business segment (USD mill)*) Maturity profile Holding & investments • WWH facilities maturing in 2018/19 • WMS facilities maturing in 2019 38 WMS group 319 • WWHI facility maturing in 2018 • WWASA mixed maturity WWASA group 1 441 633 Maturity profile 607 (USD mill.)*) Split by source (USD mill)*) 335 Leasing commitments Bonds 244 283 115 107 Other bank debt 357 2016 2017 2018 2019 2020 and Vessel later mortgages 914 WWASA WWH/WWHI/WMS 12 *) Equity method – excluding JVs
WWH – Liquidity development Positive contribution from operation USD mill *) 800 790 780 47 770 760 81 4 0 1 16 750 740 730 26 719 720 3 706 710 7 700 10 0 Liquidity EBITDA JVs/ Dividend Div to Net Net Capex Interest Tax Other Liquidity Q2’16 Q3’16 associates from JVs share financing and and ass. holders derivatives *) Equity method 13
WWH group Stable dividend per share NOK/share 8,00 H1 8,00 H2 7,00 6,00 5,50 5,50 5,00 5,00 5,00 5,00 4,00 3,00 2,00 1,00 2011 2012 2013 2014 2015 2016 • 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 14
WWH group prospects The board expects the general business environment to remain soft, impacting most group activities and performance. 15
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