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. 1 1Q 2013 R lt Hi hli ht1. 1Q 2013 Results Highlights
4. Group improves YoY operating performance
• Soft global economy in off peak season dampens
global trade and freight rates
• Profit, efficiency & cost mitigation focus narrows
1Q13 Core EBIT loss to US$85m vs US$233m in 1Q12
• US$200m gain on NOL building sale results in
US$76m net profit
Liner improves performance
•1Q13 Core EBIT loss narrows to US$101m vs. US$246m in 1Q12
•More efficient fleet reduces bunker consumption by 14% YoY (113k MT)
with slightly smaller fleet (-2% YoY capacity)
•Cost of sales per FEU reduced by 7% YoY
Logistics continues revenue & profit growth
•Broad-based growth across all major markets, 1Q13 revenue +8% YoY
•Cost discipline improves Core EBIT +27% YoY to US$16m in 1Q13
Page 4 | 14 May 2013 | 1Q 2013 Performance Review
Cost discipline improves Core EBIT 27% YoY to US$16m in 1Q13
9. Group Balance Sheet Highlights
US$m 5 Apr’ 13 28 Dec’ 12
Total Assets 8,893 8,219
(Restated)1
Total Liabilities 6,629 6,026
Total Equity 2,264 2,193
Total Debt 4 420 3 976Total Debt 4,420 3,976
Total Cash 1,310 897
Net Debt 3,110 3,079
Gearing (Gross) 1.95x 1.81x
Gearing (Net) 1.37x 1.40x
NAV per share (US$) 0 85 0 83NAV per share (US$) 0.85 0.83
(S$) 1.06 1.01
Page 9 | 14 May 2013 | 1Q 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.
13. Liner 1Q13 Results Highlights
• Weak global economy, industry oversupply & off
peak season dampens rates and volume
Effi i t di i li & fit f• Efficiency, cost discipline & profit focus narrows
Core EBIT loss to US$101m vs US$246m in 1Q12
Better efficiency & cost base
•Previous delivery of 10 x 10,000 TEU ships all operational
•Received 1x 14,000 TEU ships and 1x 9,000 TEU ships
•More efficient fleet reduces bunker consumption by 14% YoY or (113k MT)
in 1Q13 with slightly smaller fleet (-2% YoY capacity)
Profit prioritization
•Yield focus, while balancing trade & cargo mix
•Strict capacity management to match demand
•Headhaul and backhaul utilization above 90% to maximize assets
Page 13 | 14 May 2013 | 1Q 2013 Performance Review
•Headhaul and backhaul utilization above 90% to maximize assets
14. Soft global economy & industry oversupply weaken
spot rates post-Chinese New Yearspot rates post Chinese New Year
1600
SCFIIndex,Monthly Average
1400
1200
1000
800
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Page 14 | 14 May 2013 | 1Q 2013 Performance Review
15. Liner Results Summary
US$m 1Q13 1Q12 % ▲
Revenue 1,967 2,010 (2)
Core EBITDA (21) (166) (87)
Core EBIT (101) (246) (59)
EBIT 63 (244) n.m.EBIT 63 (244) n.m.
Core EBIT margin (%) (5.1) (12.2)
• 1Q13 Core EBIT improved over 1Q12 due to a better cost base and profit focus.p p
Soft macro conditions, weak off peak season and industry oversupply dampen
Average Revenue per FEU to US$2,376.
In the Transpacific trade, increased backhaul volumes at lower rates reduce
Average Revenue per FEU by 9% to US$3 471Average Revenue per FEU by 9% to US$3,471.
Cost of sales per FEU was 7% lower due to operational cost efficiencies and lower
bunker prices. Bunker prices averaged US$624/MT or 9% lower YoY.
• EBIT of US$63m mainly due to US$172m NRI from sale of NOL Building
Page 15 | 14 May 2013 | 1Q 2013 Performance Review
EBIT of US$63m mainly due to US$172m NRI from sale of NOL Building.
16. Volume and Average Revenue/FEU Trend
1Q12 Average
Revenue/FEU
US$2,420
1Q13 Average
Revenue/FEU
US$2,376
60
70
3,300
Period Average Weekly Volume (RHS) Average Revenue per FEU (LHS)
'000 FEU/
weekUS$/FEU
50
603,300
30
402,900
10
202,500
-2,100
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
P11
P12
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
P11
P12
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
P11
P12
P1
P2
P3
Page 16 | 14 May 2013 | 1Q 2013 Performance Review
Note: Average Period volumes are normalised based on number of weeks in the period
2010 2011 2012 2013
Period
17. Operational Update
Volume (‘000 FEUs) 1Q13 1Q12 % ▲
Transpacific 224 216 4
Intra-Asia 340 349 (3)
Asia-Europe 109 132 (17)
Latin America 52 54 (4)
Transatlantic 47 40 18
Total 772 791 (2)
Average Revenue/FEU (US$) 1Q13 1Q12 % ▲
Transpacific 3,471 3,825 (9)
Intra-Asia 1,425 1,439 (1)
Asia-Europe 2,413 2,149 12
Latin America 3,591 3,405 5
Transatlantic 2,628 2,974 (12)
Total 2,376 2,420 (2)
Page 17 | 14 May 2013 | 1Q 2013 Performance Review
Note: Based on point of sailing and inclusive of headhaul and backhaul trade.
19. Fleet renewal program to lower slot costs
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
20 000
40,000
60,000
80,000
6 x 9,000 TEU
6 x 9,000 TEU
4 x 14,000 TEU
0
20,000
2013 2014
2 x 8,100 TEU
Page 19 | 14 May 2013 | 1Q 2013 Performance Review
Note: 5 out of the 10 x 14,000 TEU vessels for delivery between 2013 and 2014 will be chartered out to MOL
20. Fleet Renewal
Impro ing slot costs ith more efficient ne b ild shipsImproving slot costs with more efficient newbuild ships
APL Fleet
Start FY2013
APL Fleet
End 1Q13
Charters
i i
Net capacity
129 vessels
587,000 TEUs
Owned:41%
125 vessels
605,000 TEUs
Owned: 42%
expiring
2Q13 to 2014
24 vessels*
Net capacity
change
+18,000 TEU
+3 vessels
Chartered: 59%
Average size
4,550 TEU
Chartered: 58%
Average size
4,840 TEU
139,000 TEUs
+3 vessels
-7 vessels
, ,
Current Future
1 Jan 2013 5 Apr 2013
Page 20 | 14 May 2013 | 1Q 2013 Performance Review
* Linehaul vessel charters only
Note: APL fleet capacity as at end-1Q12 was 615,000 TEU
21. Liner business conditions
Industry:
• FY2013 industry oversupply, freight rate volatility
• Transpacific rate increases moderated by fragile global
economy
• Intra-Asia trade relatively robust, faces cascading risk
• Asia-Europe rate gains shortened by weak demand
• Bunker prices trending lower
APL:
• Profit focus, efficiencies & cost discipline remain key
• Stricter capacity management, as necessary
Page 21 | 14 May 2013 | 1Q 2013 Performance Review
p y g , y
23. Logistics 1Q13 Results Highlights
• Revenue of US$427m, up 8% YoY
• Core EBIT of US$16m, up 27% YoY
Broad-based growth
, p
g
•Led by +21% YoY growth in emerging markets of Asia/Middle East
•International Services and Contract Logistics up +22% and +2% YoY
respectively
Cost management
•Strict discipline contains operating costs
Core EBIT margin improves from 3 3% to 3 7%•Core EBIT margin improves from 3.3% to 3.7%
Page 23 | 14 May 2013 | 1Q 2013 Performance Review
24. Logistics Results Highlights
US$m 1Q13 1Q12 % ▲
Revenue 427 394 8
Core EBITDA 19 15 27
Core EBIT 16 13 27
EBIT 44 12 267EBIT 44 12 267
Core EBIT margin (%) 3.7 3.3
• Logistics achieved revenue of US$427 million in 1Q13, growing 8% year-on-year (YoY)g $ , g g y y ( )
from broad-based growth, led by emerging markets in Asia/Middle East.
Contract Logistics achieved revenue of US$274 million, a 2% YoY increase
International Services achieved revenue of US$153 million, a 22% increase YoY
• Core EBIT of US$16 million for 1Q13, a 27% increase YoY due to business growth and
strict cost discipline
• EBIT of US$44m mainly due to US$28m NRI from sale of NOL Building
Page 24 | 14 May 2013 | 1Q 2013 Performance Review
25. Logistics continues growing profitably in 1Q13
• Broad-based growth from growing customer pool
• Business growth & cost discipline improves Core EBITg p p
• Continued focus on emerging market growth opportunities
13
16
15
20
US$m
394
427
450
US$m 1Q Logistics Revenue 1Q Logistics Core EBIT
5
10350
8%8% +27%+27%
-
1Q12 1Q13
250
1Q12 1Q13
+8%+8% +27%+27%
Page 25 | 14 May 2013 | 1Q 2013 Performance Review
26. APL Logistics Revenue Trend by Region
27% (Asia/Middle
East)
24% (Asia/Middle
East)
Growth led by Asia/Middle East, up +21% YoY
East)
$117
East)
$97
64% (Americas)
$271$39
67% (Americas)
$263
$34
9% (Europe) 9% (Europe)
1Q13 Revenue Breakdown –
by Region (US$m)
1Q12 Revenue Breakdown
– by Region (US$m)
Page 26 | 14 May 2013 | 1Q 2013 Performance Review
27. Performance Breakdown
US$m 1Q13 1Q12 % ▲
Growth across both business segments
Revenue 427 394 8
• Contract Logistics 274 269 2Co ac og s cs 69
• International Services 153 125 22
Core EBIT 16 13 27
• Contract Logistics 8 5 60
• International Services 8 8 -
Core EBIT Margin (%) 3.7 3.3Core EBIT Margin (%) 3.7 3.3
• Contract Logistics 2.9 1.9
• International Services 5.2 6.4
Page 27 | 14 May 2013 | 1Q 2013 Performance Review
29. Logistics business conditions
Industry:
• Auto industry seasonal slowdown in 1Q13 but expected
to improve due to robust auto sales forecasts
• US economic recovery may spur higher consumption
• Emerging markets growth continue to increase demand
for logistics services
APL Logistics:
• US & China acquisitions integrating well & positive
earnings contributionearnings contribution
• Continue to look for growth opportunities
Page 29 | 14 May 2013 | 1Q 2013 Performance Review
31. Group Outlook
The Group’s cost base will continue to improve as it takes delivery of newer and
more efficient ships while extracting further operational efficiencies. However,
the container shipping industry remains saddled with overcapacity. The Group
ill ti it f t ffi i i ld d it twill continue its focus on cost efficiency, yield and capacity management.
Barring unforeseen circumstances and if freight rates do not deteriorate, the
Group remains on track to deliver a better performance than in 2012.
Page 31 | 14 May 2013 | 1Q 2013 Performance Review
33. 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 33 | 14 May 2013 | 1Q 2013 Performance Review
34. 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
