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Wilh. Wilhelmsen ASA

> Capital Markets Day Jan Eyvin Wang – President and CEO 17 September 2014, Lysaker

> 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.

Shaping the maritime industry

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> 1989 – Wilhelmsen Lines established Wilhelmsen Lines 1989 NAL/NOSAC 1995 OW 1999 EUKOR 2002 WW Group 2014

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Vessels Operating company Trades

Shaping the maritime industry

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> 1995 – NAL/NOSAC acquired and integrated Wilhelmsen Lines 1989 NAL/NOSAC 1995 OW 1999 EUKOR 2002 WW Group 2014

Shaping the maritime industry

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>

1999 – WL merges with OW – WWL and ASL established Wilhelmsen Lines 1989 NAL/NOSAC 1995 OW 1999 EUKOR 2002 WW Group 2014

Shaping the maritime industry

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> 2002 – EUKOR established Wilhelmsen Lines 1989 NAL/NOSAC 1995 OW 1999 EUKOR 2002 WW Group 2014

Shaping the maritime industry

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– WW Group > 2014 A Unique global presence WWL Ocean routes EUKOR Ocean routes ARC Ocean routes Terminals Technical Service Facilities

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Vessels Operating companies Trades Terminals Technical Service Facilities Shaping the maritime industry

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> We created a global footprint

Shaping the maritime industry

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carrying used to be simple… > Car PCTC trade pattern 2000

Shaping the maritime industry

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globalization has made it complex > But PCTC trade pattern 2014

Shaping the maritime industry

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> Our speakers Ari Marjamaa Vice President Head of Global Market Intelligence WWL

The global outlook for the automotive and RoRo markets

Chris Connor President & CEO WWL

Wallenius Wilhelmsen Logistics Leveraging a strong position in a changing marketplace

Ole-Andreas Torgersen Partner, Lawyer Selmer

Anti-trust A brief overview of the regulatory framework and the process

Shaping the maritime industry

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The global outlook for the automotive and RoRo markets Ari Marjamaa Vice President Head of Global Market Intelligence WWL Wilh.Wilhelmsen Capital Markets Day, 17 September 2014, Lysaker

Global economic environment

Challenging market environment Economic Growth has returned, but so has uncertainty

World economy is better, but not well: •

Global growth fragile



China still key to outlook



The acronyms are shifting



Geopolitical uncertainties



Major regions developing positively

Source: IHS Global Insight

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Auto outlook

General outlook for auto markets positive Underlying global growth in seaborne shipments

Auto sales per region show growth in most markets Growth 2010-13 & 2013-16FC in %, size of circle indicates sales in 2013

Global auto sales Million units, 2007-2020FC FORECAST CAGR +3,1%

96

Growth 2013-16 98

101

103

50

93 89 83

86

40

80 73

70 66

76

30

Indian Subcontinent

64

Greater China Central Europe

20

ASEAN

Middle East/Africa

10

0

North America West Europe

Oceania

Japan/Korea

Source: IHS Automotive

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

-10

-20 -20

South America

-10

0

10

20

East Europe

30

40

50

Growth 2010-13

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Japanese auto exports

Exports from Japan continue the decline The Japanese OEMs grow their exports from other countries

Decreasing Japanese exports, but increasing JP OEM exports from other regions grow Projected change in seaborne exports 2013-2020FC by production region, million units

5,2

5,1 0,7

0,7 0,1

3,4 Exports from Japan

4,0

1,8 JP OEMs’ production outside Japan

1,1

2013

Source: IHS Automotive

Reductions ex Japan

Growth ex Japan

Reductions in JP OEMs’ exports from locations outside JP

Growth in JP OEMs’ exports from locations outside JP

2020

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Auto manufacturing - Mexico

New manufacturing hubs changing the landscape Majority of the world auto export growth from emerging locations

Mexico becoming a manufacturing powerhouse Exports by destination, million units, 2013-18FC

Diversified exports outside North America: 3,3

0,7

0,7

3,1 7%

CHINA

0,7 2,8 0,6

2,6

L AMERICA

0,5

2,4 2,3

0,5

Other W EUROPE

ARG/BRA

US/CAN Other

2013

2013

Note: Excluding domestic sales Source: IHS Automotive

2014

2015

2016

2017

2014

2015

2016

2017

2018

2018

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Auto manufacturing - Thailand

New manufacturing hubs changing the landscape Majority of the world auto export growth from emerging locations

Thailand manufacturing output to serve SEA and OC growth, as well as beyond Exports by destination region in million units. Asian destined exports’ share of total in %, 2013-18FC

Thai exports, million units 1,8

Asian share of Thai exports, %

28

27 % 26 %

26 %

1,6

26 %

25 %

1,6

1,5 23 %

1,6 24 %

24 22 %

1,4

22

1,3 1,2

20

1,1 1,1

1,0

26

0,9

18

0,9

16 0,8

14 12

0,6

10 0,4

8 0,2

6 4

0,0 2013 W EUROPE

Note: Excluding domestic sales Source: IHS Automotive

2014 NAFTA

2015 MIDDLE EAST

2016 S E ASIA

2017 OCEANIA

2018 Other

2019

2020

SEA share of Thai exports

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H&H: Construction

Construction market key driver for heavy equipment European construction spending finally starting to show growth momentum

Source: IHS Construction, GMI

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H&H: Construction

US construction indices see positive development Severely hit in the beginning of 2014 by weather

US total construction spending 1000 USDbn

Housing Market Index Builder’s confidence index, seasonally adj. Index

1,2

Million units

Housing Market Index

Housing starts

Current sales conditions

0,70

0,55

US Housing starts and permits Seasonal adjusted rate

1,7

Housing permits

Future sales conditions (6m)

0,50

1,0

0,45

Total spend (1000 USDbn)

0,9

0,40

0,8 0,35 0,7 0,30 0,6 0,25 0,5 0,20 0,4 0,15

0,3

0,10

0,2 US total construction spending

0,1

0,05

Total private residential spending

Private residential and non residential spend split (1000 USDbn)

1,1

0,65

Traffic of prospective buyers

1,5

0,60

1,4

0,55

1,3

0,50

1,2

0,45

1,1

0,40

1,0 0,9

0,35

0,8

0,30

0,7 January’s significantly poor weather conditions is a major factor weighing on the index. Lower levels of buyer traffic translated into downgraded expectations for sales in February

0,25 0,20 0,15 0,10 0,05

Total private non residential spending

0,0

0,00 07

08

09

10

11

12

13

14

15

Source: Global Insight, Bureau of the Census, National Association of Home Builders , Wells Fargo, GMI

1,6

0,00 1/1/06

1/1/08

1/1/10

1/1/12

1/1/14

1/1/16

0,6 0,5 0,4 0,3 0,2

January starts suffered due to adverse weather conditions (the 15th coldest in 120 years, in terms of heating degree days)

0,1 0,0 1/1/06

1/1/08

1/1/10

1/1/12

1/1/14

1/1/16

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H&H: Agriculture

Large AG equipment have seen strong sales trend in the US, but has turned negative US sales of large AG equipment Large tractors (100hp+ and 4WD) and combine sales (units), 12m rolling sales growth (%) US sales of large AG equipment 12m rolling (units)

Large AG equipment (rolling 12m avg) Sales growth y/y rolling 12m (%)

Growth rate y/y rolling 12m

26%

5.000

24% 22% 20%

4.000

18% 16% 14% 3.000

12% 10% 8% 6%

2.000

4% 2% 0% 1.000

-2% -4% -6% -8%

0 1/2011

Source: AEM, GMI

3/2011

5/2011

7/2011

9/2011

11/2011

1/2012

3/2012

5/2012

7/2012

9/2012

11/2012

1/2013

3/2013

5/2013

7/2013

9/2013

11/2013

1/2014

3/2014

5/2014

8/2014

Mining

Light in muted mining markets again? Australian iron ore production at record high and still growing

• Miners have been hard at work • Australian production level record high

• Effects on Chinese steel production capacity • Australia to remain main iron ore location

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Summing up

Positive drivers for auto and heavy equipment •

Challenging market environment where economic growth has returned, but so has uncertainty



General outlook for auto markets positive with underlying global growth in seaborne shipments



Exports from Japan continue the decline, but the Japanese OEMs grow their exports from other countries



New manufacturing hubs changing the landscape, with the majority of the world auto manufacturing growth in emerging locations



Construction market key driver for heavy equipment with European construction spending finally starting to show growth momentum



Large AG equipment have seen strong sales trend in the US, but has turned negative



Light in muted mining markets again as Australian iron ore production hits record high and still growing 22

Wallenius Wilhelmsen Logistics Leveraging a strong position in a changing market place Chris Connor President & CEO WWL Wilh.Wilhelmsen Capital Markets Day, 17 September 2014, Lysaker

Agenda

01. A changing marketplace 02. Leveraging a strong position 03. Taking on the Challenge

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A Changing Marketplace

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A Changing Marketplace

An unprecedented pace of change

Market Fragmentation

Changing Customer Behaviour

New Environmental Legislation

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A Changing Marketplace

Market fragmentation by the numbers

Development of total deep sea auto export volumes, 2014-2018 Million units

Compound Annual Growth Rate 2014-2018

+9%

+14% 13.5 0.7 11.8 0.5 1.0

0%

14.7 0.7

Other

2.1

NA

3.7

EU

1.6

1.9

3.3

8.4

7.9

8.2

2008

2014

2018

~43%

~27%

~20%

6%

3%

AS

1%

Japan share of total deep sea export volumes

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A Changing Marketplace

Customers are increasing the pressure

Slow growth in recent years has increased cost focus Top Management is pushing hard on stretch targets for savings Build up of procurement departments, increased use of procurement consultants and driving a very price-focused discussion

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A Changing Marketplace

New Sulphur Regulations are here in a few months

ECAs

1.0%

• Today • Low Sulphur HFO

0.1%

• 2015 • Distillate fuels

Global

3.5%

•Today •Regular HFO

0.5%

•2020 in Europe, 2020 / 25 globally •Compliance solution?

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A Changing Marketplace

Sulphur regulation – A four stream approach

Distillate Fuels

SRC in place Other Energy Sources

Leveraging deep experience in low sulphur operation Strong will to find sustainable solutions