Wallenius Wilhelmsen (WAWI) Status Update summary

Change in accounting treatment

• Announced a change in accounting for Put/Call options related to a 20% minority shareholding in EUKOR, following a review and recommendation by the new auditor, Ernst & Young.

• The previous accounting method, established in 2018 and reaffirmed in 2022 by PwC, is being replaced; the underlying option agreement terms remain unchanged.

• Restatement affects 2023 and Q1 2024 financials, reducing equity by USD 977m for 2023 and USD 929m for Q1-24, with corresponding increases in current liabilities and reductions in non-current assets.

• The restated liability is non-cash, non-interest-bearing, and will not be included in net interest-bearing debt; restatements do not impact operational performance, dividend policy, or ability to meet financial obligations.

• Equity ratios drop to 36.0% for 2023 and 36.5% for Q1-24, but leverage ratios and compliance with financial targets and debt covenants remain unaffected.

Details of option valuation

• The strike price for the Put and Call options is calculated based on the Korean Tax Act of 2002, using EUKOR's tax results from the past three years.

• Weighting for the calculation is 3/6 for the most recent year, 2/6 for the second, and 1/6 for the third year.

• Valuation is performed in Korean won and translated to US dollars.

• The options became exercisable in 2018 after EUKOR's share of Ocean Carrier Contract volumes fell below 50%.

• IFRS requires the Put option to be recorded as a current liability, regardless of exercise probability.

Financial impact and outlook

• 2023 restated: Other non-current assets at USD 125m, equity at USD 3,080m, other current liabilities at USD 1,443m; EBIT, profit before tax, and profit after tax all improved slightly.

• Q1-24 restated: Other non-current assets at USD 133m, equity at USD 3,211m, other current liabilities at USD 1,496m; EBIT, profit before tax, and profit after tax all improved.

• ROCE increased to 18.2% for 2023 and 18.9% for Q1-24; equity ratios decreased, leverage ratios unchanged.

• No impact on dividend policy, planned payout, or compliance with debt covenants.

• The restatement does not require reissuance of previous annual or quarterly reports; final effects will be detailed in the Q2-24 report.