1H & 2Q 2013 Performance Review
7 August 2013
Forward Looking Statements
The following presentation includes forward-looking statements, which involve known and
unknown...
1 1H & 2Q 2013 R lt Hi hli ht B N Y t Ch
1. 1H & 2Q 2013 Results Highlights By Ng Yat Chung
Group President & CEO
1H2013 Results Overview
Efficiencies drive improved resultsEfficiencies drive improved results
• Global slowdown lowers Gr...
Market conditions deteriorated in 1H & 2Q
1,500
2012
2Q13 vs 2Q12
1,225
-28%
index drops
950
2013
950
Jan Feb Mar Apr May ...
Rates plunged in major trade lanes
1,7411,800
US$/TEU
1,2151,250
US$/TEU
Asia-Europe Freight Rate Asia-US West Coast Freig...
NOL’s cost & yield focus swings 1H Core
EBIT +US$97mEBIT +US$97m
1H13 Revenue
US$(276) Y Y
4,595 4,616 4,711 4,801
4,435
(...
Efficiency drive nets US$240m* cost savings
1H13 cost savings highlights
• Bunker & Network:
• Network optimisation
• Trim...
2 1H & 2Q 2013 Fi i l P f2. 1H & 2Q 2013 Financial Performance By Cedric Foo
Group Deputy President &
CFO
Group Financial Highlights
P iti C EBITDA
US$m
Revenue
Positive Core EBITDA
Core EBITDA
91
37 35
60
120
US$m
2 333
4,711
4...
Group Financial Highlights
1H13 Core EBIT improves 45% YoY Net results lifted1H13 Core EBIT improves 45% YoY, Net results ...
Financial Highlights by Business Segment
125
US$m
6,000
US$m
Revenue by Business Segments Core EBIT by Business Segments
7...
Group Balance Sheet Highlights
US$m 28 Jun’ 13 28 Dec’ 12
Total Assets 8,966 8,219
(Restated)1
Total Liabilities 6,745 6,0...
Group Cash Flow Highlights
US$m 1H13 1H12
Cash & Cash Equivalents – Beginning @ Q1 897 228
Cash Inflow / (Outflow)( )
Oper...
Group Capital Expenditure
US$m 1H13 1H12
1. Vessels 638 393
2. Equipment / Facilities 43 63
3. Drydock 31 16
4. IT 49 13
5...
3 Li B K th Gl
3. Liner By Kenneth Glenn
President, APL
Liner 1H13 Results Highlights
Challenging macroeconomic & industry conditions
• Revenue -8% or US$309m YoY, mainly from -1...
Industry working through oversupply
2020
Global Fleet Capacity % Annual Capacity Growth % Global Throughput Growth
YoY %
c...
Liner Results Summary
Revenue Core EBIT
7
4.0100
US$m
4,004
3,695
5,000
US$m
Core EBIT Core EBIT margin (%)
(45)
(146) (4....
Volume and Average Revenue/FEU Trend
2 615
2,6501,500
Volume
('000 FEUs) US$/FEU
2,598
2 539 2 539
2,615
2,601
1,200
Rev/F...
Operational Update
Soft global econom contin ed to affect ol me and freight rates
Volume (‘000 FEUs) 1H13 1H12 % ▲ 2Q13 2Q...
Fleet renewal program on track, over 50% of
vessels delivered
8,100 TEU 9,000 TEU 14,000 TEU
TEUs
Total vessels
140,000
16...
Liner business conditions
Industry
• Rate increases in Transpacific and Asia-Europe going into
peak season
• Intra-Asia tr...
4 L i ti4. Logistics By Jim McAdam
President, APL Logistics
Logistics 1H13 Results Highlights
Growth across major markets
• Revenue of US$781m +4% YoY
Revenue growth led by emerging ...
Logistics Results Highlights
Revenue Core EBIT
755 781
750
1,000
US$m
3 4
Revenue Core EBIT
Core EBIT Core EBIT margin (%)...
APL Logistics Revenue Trend by Region
28% (Asia/Middle East) 23% (Asia/Middle East)
Growth led by Asia/Middle East, up +23...
Performance Breakdown
International Logistics Core EBIT surges +40% YoY
1H13 1H12
% ▲
Better/ 2Q13 2Q12
% ▲
Better/1H13 1H...
Revenue and Core EBIT Margin Trend
15 0%35
Weekly Revenue (US$m) (LHS) Core EBIT Margin (%) (RHS)
Weekly Revenue
(US$m)
Co...
Logistics business conditions
Industry
• Inclement weather in developed markets slows down retail and consumer
sectors in ...
5 G O tl k5. Group Outlook
Group Outlook
General market conditions and freight rates continued to deteriorate in the
second quarter of 2013, with few...
A diAppendix
Group Financial Highlights
US$m 1H13 1H12
% ▲
Better/ 2Q13 2Q12
% ▲
Better/US$m 1H13 1H12 Better/
(Worse)
2Q13 2Q12 Better...
Financial Highlights by Business Segment
Revenue (US$m) 1H13 1H12
% ▲
Better/
(Worse)
2Q13 2Q12
% ▲
Better/
(Worse)
Liner ...
Liner Results Summary
US$m 1H13 1H12
% ▲
Better/
(Worse)
2Q13 2Q12
% ▲
Better/
(Worse)
Revenue 3 695 4 004 (8) 1 728 1 994...
Logistics Results Highlights
US$m 1H13 1H12
% ▲
Better/
(Worse)
2Q13 2Q12
% ▲
Better/
(Worse)
Revenue 781 755 4 354 361 (2...
Fleet Capacity Change
APL Fleet APL FleetAPL Fleet
Start FY2013
129 vessels
APL Fleet
End 2Q13
129 vessels
Charters
expiri...
Group Fuel and Currency Exposures
Bunker
• The Group continues to recover part of its fuel price increases from customers ...
Neptune Orient Lines Ltd
456 Alexandra Road,
NOL Building
End of Presentation
Thank You
NOL Building
Singapore 119962
Tel:...
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NOL Q2 2013 results presentation

  1. 1. 1H & 2Q 2013 Performance Review 7 August 2013
  2. 2. Forward Looking Statements The following presentation includes forward-looking statements, which involve known and unknown risks and uncertainties, that could cause actual results or performance to differ. Forward looking information is based on current views and assumptions of management, including, but not limited to, prevailing economic and market conditions. Such statements are not, and should not be interpreted as a forecast or projection of future performance.
  3. 3. 1 1H & 2Q 2013 R lt Hi hli ht B N Y t Ch 1. 1H & 2Q 2013 Results Highlights By Ng Yat Chung Group President & CEO
  4. 4. 1H2013 Results Overview Efficiencies drive improved resultsEfficiencies drive improved results • Global slowdown lowers Group revenue • Operational & cost efficiencies improve operating results Liner – Macro headwinds, improved cost base Operational & cost efficiencies improve operating results • Building sale gain results in US$41m net profit e ac o ead ds, p o ed cost base • Soft global economy dampens volume • Industry oversupply severely weakens freight rates Logistics – Growing across major markets y pp y y g • Leaner operations cuts Core EBIT loss by 39% g g j • US & emerging markets drive revenue growth • Cost discipline improves profitability Page 4 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  5. 5. Market conditions deteriorated in 1H & 2Q 1,500 2012 2Q13 vs 2Q12 1,225 -28% index drops 950 2013 950 Jan Feb Mar Apr May Jun Shanghai Containerized Freight Index (SCFI) Page 5 | 7 August 2013 | 1H & 2Q 2013 Performance Review Source: SCFI
  6. 6. Rates plunged in major trade lanes 1,7411,800 US$/TEU 1,2151,250 US$/TEU Asia-Europe Freight Rate Asia-US West Coast Freight Rate 1,030 781 1,200 1,000 781 600 750 - 2Q 12 2Q 13 500 2Q 12 2Q 13 Page 6 | 7 August 2013 | 1H & 2Q 2013 Performance Review 2Q 12 2Q 13 Source: SCFI
  7. 7. NOL’s cost & yield focus swings 1H Core EBIT +US$97mEBIT +US$97m 1H13 Revenue US$(276) Y Y 4,595 4,616 4,711 4,801 4,435 (28) 5 1005,000 US$m US$m US$(276)m YoY (28) (120) (100) 0 2 500 (349) (217) (300) (200) 2,500 1H13 Core EBIT +US$97m YoY (349) (400) (300) - 1H11 2H11 1H12 2H12 1H13 Page 7 | 7 August 2013 | 1H & 2Q 2013 Performance Review Revenue (LHS) Core EBIT (RHS)
  8. 8. Efficiency drive nets US$240m* cost savings 1H13 cost savings highlights • Bunker & Network: • Network optimisation • Trim optimisation Terminals, Land Trim optimisation • Vessel slow-steaming • Terminal operations Bunker& Network- related APLL Land Operations, Equipment 25% p optimisation • Empty repositioning 60% Others 10% APLL 5% • APL Logistics Page 8 | 7 August 2013 | 1H & 2Q 2013 Performance Review *Excludes bunker price drop of 10% YoY
  9. 9. 2 1H & 2Q 2013 Fi i l P f2. 1H & 2Q 2013 Financial Performance By Cedric Foo Group Deputy President & CFO
  10. 10. Group Financial Highlights P iti C EBITDA US$m Revenue Positive Core EBITDA Core EBITDA 91 37 35 60 120 US$m 2 333 4,711 4,435 5,000 US$m (60) (120) (60) -2,333 2,064 - 2,500 (120) 2Q12 2Q13 1H12 1H132Q12 2Q13 1H12 1H13 % ▲ Better/ (Worse) % ▲ Better/ (Worse) (12) (6) % ▲ Better/ (Worse) % ▲ Better/ (Worse) (59) n.m. (US$m) 2Q12 2Q13 1H12 1H13 Liner 79 24 (87) 3 Logistics 12 13 27 32 Page 10 | 7 August 2013 | 1H & 2Q 2013 Performance Review Total 91 37 (60) 35
  11. 11. Group Financial Highlights 1H13 Core EBIT improves 45% YoY Net results lifted1H13 Core EBIT improves 45% YoY, Net results lifted by NOL building sale 16 100 US$m 81 150 US$m EBIT2Core EBIT1 41100  US$m Net Profit / (Loss) 16 (35) (120) (100) - (96) (26) (150) - (118) (35) 41 (200) (100) ‐ (217) (300) (200) 2Q12 2Q13 1H12 1H13 (328) (450) (300) 2Q12 2Q13 1H12 1H13 (371)(400) (300) 2Q12 2Q13 1H12 1H13 % ▲ Better/ (Worse) % ▲ Better/ (Worse) 73 n.m. % ▲ Better/ (Worse) % ▲ Better/ (Worse) n.m. 45 % ▲ Better/ (Worse) % ▲ Better/ (Worse) 71 n.m. Page 11 | 7 August 2013 | 1H & 2Q 2013 Performance Review 1) Core EBIT excludes non-recurring items. 2) EBIT includes non-recurring items. Includes NOL building sale gain of US$200m.
  12. 12. Financial Highlights by Business Segment 125 US$m 6,000 US$m Revenue by Business Segments Core EBIT by Business Segments 7 9 22 (45) 10 26 (25) 50 755 781 (239) (146) (175) (100) 361 354 3,000 (239) (250) 2Q12 2Q13 1H12 1H13 1,994 4,0041,728 3,695 - 2Q12 2Q13 1H12 1H13 2Q12 2Q13 1H12 1H13 2Q12 2Q13 1H12 1H13 Revenue 2,355 2,082 4,759 4,476 Elimination (22) (18) (48) (41) Total 16 (3 ) (21 ) (120) Page 12 | 7 August 2013 | 1H & 2Q 2013 Performance Review Total Revenue 2,333 2,064 4,711 4,435 Total 16 (35) (217) (120)
  13. 13. Group Balance Sheet Highlights US$m 28 Jun’ 13 28 Dec’ 12 Total Assets 8,966 8,219 (Restated)1 Total Liabilities 6,745 6,026 Total Equity 2,221 2,193 Total Debt 4 636 3 976Total Debt 4,636 3,976 Total Cash 1,223 897 Net Debt 3,413 3,079 Gearing (Gross) 2.09x 1.81x Gearing (Net) 1.54x 1.40x NAV per share (US$) 0 84 0 83NAV per share (US$) 0.84 0.83 (S$) 1.06 1.01 Page 13 | 7 August 2013 | 1H & 2Q 2013 Performance Review 1 2012’s results is restated for comparative purposes due to retrospective application of Amendments to FRS 19: Employee Benefit (Revised), which is effective from financial year 2013.
  14. 14. Group Cash Flow Highlights US$m 1H13 1H12 Cash & Cash Equivalents – Beginning @ Q1 897 228 Cash Inflow / (Outflow)( ) Operating Activities (20) (302) Investing/Capex Activities (369) (414) Financing Activities 715 726 Cash & Cash Equivalents – Closing @ Q2 1,223 238 Page 14 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  15. 15. Group Capital Expenditure US$m 1H13 1H12 1. Vessels 638 393 2. Equipment / Facilities 43 63 3. Drydock 31 16 4. IT 49 13 5 Others 3 45. Others 3 4 Total 764 489 Page 15 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  16. 16. 3 Li B K th Gl 3. Liner By Kenneth Glenn President, APL
  17. 17. Liner 1H13 Results Highlights Challenging macroeconomic & industry conditions • Revenue -8% or US$309m YoY, mainly from -11% Rev/FEU in 2Q13 Positive Core EBITDA +US$90m swing to US$3m Improved efficiency & cost base • Positive Core EBITDA, +US$90m swing to US$3m • Core EBIT loss narrowed 39% YoY to US$146m p y • 19 of 34 new ships* replaced 13 older/smaller ships sold/scrapped & 25 charter ships returned B k ti d d b 16% Y Y (228k MT) hil fl t• Bunker consumption reduced by 16% YoY (228k MT) while fleet capacity expanded by 5% YoY • Cost of sales/FEU reduced by 8% YoY Maintain yield focus • Yield focus, while balancing trade & cargo mix Page 17 | 7 August 2013 | 1H & 2Q 2013 Performance Review • Headhaul utilisation >90% to maximise assets * From 1 Jan 2012 to 28 June 2013
  18. 18. Industry working through oversupply 2020 Global Fleet Capacity % Annual Capacity Growth % Global Throughput Growth YoY % change TEU Millions Global financial crisis US quantitative easing Demand-supply gap 16 13.8 13.2 12 5 14.1 15 16 financial crisis easing 5.5 9.1 7.9 6.0 6.6 7.1 10.9 12.5 5 7 8.3 5 10 12 5.7 4.7 4.3 5.4 0 8 ( ) ‐5 4 Page 18 | 7 August 2013 | 1H & 2Q 2013 Performance Review (8.4) ‐10- end 2006 end 2007 end 2008 end 2009 end 2010 end 2011 end 2012 end 2013F end 2014F Source: Alphaliner, July 2013
  19. 19. Liner Results Summary Revenue Core EBIT 7 4.0100 US$m 4,004 3,695 5,000 US$m Core EBIT Core EBIT margin (%) (45) (146) (4.0) - (100) 1,994 1,728 2,500 0.4 (2.6) (6.0) (4.0) (239) (8.0)(300) 2Q12 2Q13 1H12 1H13 - 2Q12 2Q13 1H12 1H13 % ▲Better/ (Worse) % ▲Better/ (Worse) Core EBIT % ▲ Better/ (Worse) Core EBIT % ▲ Better/ (Worse) 1H13 Revenue decreased 8% or US$309m YoY, while 1H13 Core EBIT improved 39% or US$93m YoY due to continued yield focus & a lower cost base. (13) (8) Better/ (Worse) Better/ (Worse) n.m. 39 US$93m YoY due to continued yield focus & a lower cost base. Soft macro conditions, weak off peak season and industry oversupply dampened Average Revenue per FEU to US$2,347. Cost of sales per FEU was 8% lower YoY due to operational cost efficiencies and Page 19 | 7 August 2013 | 1H & 2Q 2013 Performance Review lower bunker prices. Bunker prices averaged US$621/MT or 10% lower YoY.
  20. 20. Volume and Average Revenue/FEU Trend 2 615 2,6501,500 Volume ('000 FEUs) US$/FEU 2,598 2 539 2 539 2,615 2,601 1,200 Rev/FEU reduced 11% 764 692 699 824 791 720 707 802 772 705 2,539 2,539 2,450 600 900 2,342 2,420 2,419 2,376 2 315 300 600 2,315 2,250- 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 TotalVolume (LHS) AverageRevenue/FEU (RHS) Page 20 | 7 August 2013 | 1H & 2Q 2013 Performance Review ( ) g ( )
  21. 21. Operational Update Soft global econom contin ed to affect ol me and freight rates Volume (‘000 FEUs) 1H13 1H12 % ▲ 2Q13 2Q12 % ▲ Transpacific 419 418 - 195 202 (3) Soft global economy continued to affect volume and freight rates Intra-Asia 660 668 (1) 320 319 - Asia-Europe 210 242 (13) 101 110 (8) Latin America 100 103 (3) 48 49 (2) Transatlantic 88 80 10 41 40 3 Total 1,477 1,511 (2) 705 720 (2) Average Revenue/FEU (US$) 1H13 1H12 % ▲ 2Q13 2Q12 % ▲ Transpacific 3,465 3,741 (7) 3,458 3,651 (5) Intra-Asia 1,439 1,579 (9) 1,454 1,732 (16) Asia-Europe 2,284 2,422 (6) 2,144 2,750 (22) Latin America 3,522 3,497 1 3,448 3,596 (4) Transatlantic 2,650 2,894 (8) 2,675 2,815 (5) Page 21 | 7 August 2013 | 1H & 2Q 2013 Performance Review Note: Based on point of sailing and inclusive of headhaul and backhaul trade. Total 2,347 2,513 (7) 2,315 2,615 (11)
  22. 22. Fleet renewal program on track, over 50% of vessels delivered 8,100 TEU 9,000 TEU 14,000 TEU TEUs Total vessels 140,000 160,000 180,000 14 80,000 100,000 120,000 10 6 x 14,000 TEU 4 x 14 000 TEU 4 x delivered1 2 2 20 000 40,000 60,000 80,000 6 x 9,000 TEU 6 x 9,000 TEU 4 x 14,000 TEU 3 x delivered1 N t 0 20,000 2013 2014 2 x 8,100 TEU 2 x delivered1 As at end-1H13 Page 22 | 7 August 2013 | 1H & 2Q 2013 Performance Review Note: 1) The 19 delivered vessels as at end-1H13 includes 10 x 10,000 TEU vessels delivered in 2012 2) 5 out of the 10 x 14,000 TEU vessels for delivery between 2013 and 2014 will be chartered out to MOL
  23. 23. Liner business conditions Industry • Rate increases in Transpacific and Asia-Europe going into peak season • Intra-Asia trade relatively robust despite cascading of vessels C t ti d t i t i t• Customers cautious due to macro-economic uncertainty • Bunker prices steady around US$600/MT APL • Maintain yield focus, efficiencies & cost discipline Page 23 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  24. 24. 4 L i ti4. Logistics By Jim McAdam President, APL Logistics
  25. 25. Logistics 1H13 Results Highlights Growth across major markets • Revenue of US$781m +4% YoY Revenue growth led by emerging markets Revenue of US$781m, +4% YoY • Core EBIT of US$26m, +18% YoY Revenue growth led by emerging markets • Emerging markets revenue +23% YoY, led by Asia/Middle East • International Services +15% YoY on improved Asian vendor logistics • Contract Logistics -2% YoY, mainly due to unscheduled auto plant shut-down in North America Strict cost discipline improves profitability • Core EBIT margin improves from 2.9% to 3.4% Page 25 | 7 August 2013 | 1H & 2Q 2013 Performance Review Core EBIT margin improves from 2.9% to 3.4%
  26. 26. Logistics Results Highlights Revenue Core EBIT 755 781 750 1,000 US$m 3 4 Revenue Core EBIT Core EBIT Core EBIT margin (%) 361 354 500 750 2.5 2.9 2.9 3.4 - 250 2Q12 2Q13 1H12 1H13 C EBIT % ▲ C EBIT % ▲ • Logistics achieved revenue of US$781 million in 1H13 growing 4% year-on-year (YoY) % ▲ Better/ (Worse) % ▲ Better/ (Worse) (2) 4 Core EBIT % ▲ Better/ (Worse) Core EBIT % ▲ Better/ (Worse) 11 18 • Logistics achieved revenue of US$781 million in 1H13, growing 4% year on year (YoY), led by emerging markets in Asia/Middle East. Contract Logistics achieved revenue of US$498 million, a 2% YoY decrease International Services achieved revenue of US$283 million, a 15% increase YoY Page 26 | 7 August 2013 | 1H & 2Q 2013 Performance Review • Core EBIT of US$26 million for 1H13, an 18% increase YoY.
  27. 27. APL Logistics Revenue Trend by Region 28% (Asia/Middle East) 23% (Asia/Middle East) Growth led by Asia/Middle East, up +23% YoY 28% (Asia/Middle East) $215 23% (Asia/Middle East) $175 63% (Americas) $493$73 68% (Americas) $511 $69 $781 $755 9% (Europe) 9% (Europe) 1H13 Revenue Breakdown – by Region (US$m) 1H12 Revenue Breakdown – by Region (US$m) Page 27 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  28. 28. Performance Breakdown International Logistics Core EBIT surges +40% YoY 1H13 1H12 % ▲ Better/ 2Q13 2Q12 % ▲ Better/1H13 1H12 Better/ (Worse) 2Q13 2Q12 Better/ (Worse) Revenue (US$m) 781 755 4 354 361 (2)Revenue (US$m) 781 755 4 354 361 (2) • Contract Logistics 498 508 (2) 224 239 (6) • International Services 283 247 15 130 122 7 Core EBIT (US$m) 26 22 18 10 9 11 • Contract Logistics 12 12 - 4 7 (43) • International Services 14 10 40 6 2 200 Core EBIT Margin (%) 3.4 2.9 17 2.9 2.5 16 • Contract Logistics 2.4 2.4 - 1.8 2.9 (38) Page 28 | 7 August 2013 | 1H & 2Q 2013 Performance Review • International Services 5.1 4.0 27 4.9 1.6 206
  29. 29. Revenue and Core EBIT Margin Trend 15 0%35 Weekly Revenue (US$m) (LHS) Core EBIT Margin (%) (RHS) Weekly Revenue (US$m) Core EBIT Margin (%) 15.0% 30 35 5 7% 6.0% 10.0% 25 5.7% 3.8% 4.8% 5.1% 3.3% 2.5% 5.2% 3.7% 2.9% 5.0% 15 20 0.0%10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Page 29 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  30. 30. Logistics business conditions Industry • Inclement weather in developed markets slows down retail and consumer sectors in 2Q13 • Domestic consumption in emerging markets remains strong despite modest demand growth in developed markets APL Logistics • Greater adoption of multi-channel retailing provides new supply chain management opportunities in emerging markets APL Logistics • International Logistics volumes and operating margins improve YoY (+15% and +40% respectively), driven by consumer & retail sectors in i k temerging markets • Within Contract Logistics: Land Transportation and Warehousing/ Distribution grew +19% and +13% YoY respectively, driven by Asia and Latin America partly offsetting automotive sector weakness Page 30 | 7 August 2013 | 1H & 2Q 2013 Performance Review Latin America, partly offsetting automotive sector weakness • Continue to improve efficiencies and cost discipline
  31. 31. 5 G O tl k5. Group Outlook
  32. 32. Group Outlook General market conditions and freight rates continued to deteriorate in the second quarter of 2013, with few signs of a quick recovery. Along with poor market demand, the container shipping industry remains burdened with over- it d k f i ht t NOL’ t b ill ti t icapacity and weak freight rates. NOL’s cost base will continue to improve through operating efficiencies, aided by lower vessel slot costs with the delivery of its larger and more fuel-efficient ships. Barring unforeseen circumstances, the Group remains on track to deliver a better performance than in 2012.p p Page 32 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  33. 33. A diAppendix
  34. 34. Group Financial Highlights US$m 1H13 1H12 % ▲ Better/ 2Q13 2Q12 % ▲ Better/US$m 1H13 1H12 Better/ (Worse) 2Q13 2Q12 Better/ (Worse) Revenue 4,435 4,711 (6) 2,064 2,333 (12) Core EBITDA 35 (60) n.m. 37 91 (59)( ) ( ) Core EBIT (before non- recurring items) (120) (217) 45 (35) 16 n.m. Non-recurring items 201 (111) n.m. 9 (112) n.m. EBIT 81 (328) n.m. (26) (96) 73 Net profit/(loss) to owners of the company 41 (371) n.m. (35) (118) 71 Page 34 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  35. 35. Financial Highlights by Business Segment Revenue (US$m) 1H13 1H12 % ▲ Better/ (Worse) 2Q13 2Q12 % ▲ Better/ (Worse) Liner 3 695 4 004 (8) 1 728 1 994 (13)Liner 3,695 4,004 (8) 1,728 1,994 (13) Logistics 781 755 4 354 361 (2) Elimination (41) (48) 15 (18) (22) 18 Total Revenue 4,435 4,711 (6) 2,064 2,333 (12) C EBIT (US$ ) 1H12 1H11 % ▲ / 2Q13 2Q12 % ▲ /Core EBIT (US$m) 1H12 1H11 Better/ (Worse) 2Q13 2Q12 Better/ (Worse) Liner (146) (239) 39 (45) 7 n.m. Logistics 26 22 18 10 9 11Logistics 26 22 18 10 9 11 Total Core EBIT (120) (217) 45 (35) 16 n.m. Page 35 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  36. 36. Liner Results Summary US$m 1H13 1H12 % ▲ Better/ (Worse) 2Q13 2Q12 % ▲ Better/ (Worse) Revenue 3 695 4 004 (8) 1 728 1 994 (13)Revenue 3,695 4,004 (8) 1,728 1,994 (13) Core EBITDA 3 (87) n.m. 24 79 (70) Core EBIT (146) (239) 39 (45) 7 n.m. EBIT 26 (349) n.m. (37) (105) 65 Core EBIT margin (%) (4.0) (6.0) 33 (2.6) 0.4 n.m. Page 36 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  37. 37. Logistics Results Highlights US$m 1H13 1H12 % ▲ Better/ (Worse) 2Q13 2Q12 % ▲ Better/ (Worse) Revenue 781 755 4 354 361 (2) Core EBITDA 32 27 19 13 12 8 Core EBIT 26 22 18 10 9 11Core EBIT 26 22 18 10 9 11 EBIT 55 21 162 11 9 22 Core EBIT margin (%) 3.4 2.9 17 2.9 2.5 16 Page 37 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  38. 38. Fleet Capacity Change APL Fleet APL FleetAPL Fleet Start FY2013 129 vessels APL Fleet End 2Q13 129 vessels Charters expiring 2H13 to 2014 Net capacity 587,000 TEUs Owned:41% Chartered: 59% 665,000 TEUs Owned: 48% Chartered: 52% 2H13 to 2014 23 vessels* 135,000 TEUs change +78,000 TEU Average size 4,550 TEU Average size 5,160 TEU 1 Jan 2013 28 June 2013 Current Future 1 Jan 2013 28 June 2013 Page 38 | 7 August 2013 | 1H & 2Q 2013 Performance Review * Linehaul vessel charters only Note: APL fleet capacity as at end-Q12 was 630,000 TEU
  39. 39. Group Fuel and Currency Exposures Bunker • The Group continues to recover part of its fuel price increases from customers through bunker adjustment factors.j • The Group also maintains a policy of hedging its bunker exposures. Foreign exchange • Major foreign currency exposures are in Euro, Singapore Dollar, Canadian Dollar, Japanese Yen and Chinese Renminbi. • The Group maintains a policy of hedging its foreign exchange exposures. Page 39 | 7 August 2013 | 1H & 2Q 2013 Performance Review
  40. 40. Neptune Orient Lines Ltd 456 Alexandra Road, NOL Building End of Presentation Thank You NOL Building Singapore 119962 Tel: (65) 6278 9000 Fax: (65) 6278 4900 Company registration number : 196800632Dnumber : 196800632D Website: www.nol.com.sg

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