Global Ports Investments PLC 2011 Interim Results Presentation. 12 September 2011

Transcription

1 Global Ports Investments PLC 2011 Interim Results Presentation 12 September

2 Disclaimer Information contained in this presentation concerning Global Ports Investments PLC, a company organised and existing under the laws of Cyprus (the Company, and together with its subsidiaries, the Group ), is for general information purposes only. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. These materials may contain forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as expect, believe, estimate, anticipate, intend, will, could, may, or might, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Company s intentions, beliefs or current expectations concerning, among other things, the Company s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. The Company cautions you that forward-looking statements are not guarantees of future performance and that the Company s actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Company s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market change in the Russian freight rail market, as well as many other risks specifically related to the Company and its operations. These materials do not constitute an offer or an advertisement of any securities in any jurisdiction. 1

3 Reference to accounts and operational information All financial information presented in this presentation is derived from the interim condensed consolidated financial information (unaudited) of Global Ports Investments PLC ( the Company or, together with its subsidiaries, the Group ) for the six months ended 30 June 2011 and prepared in accordance with International Financial Reporting Standards ( IFRS ) as adopted by the European Union applicable to Interim Financial Reporting (International Accounting Standard 34 "Interim Financial Reporting"). The interim condensed consolidated financial information should be read in conjunction with the annual consolidated financial statements for the years ended 31 December 2010, 31 December 2009, and 31 December 2008, which have been prepared in accordance with IFRS as adopted by the European Union. The Group s interim condensed consolidated financial information for the six month period ended 30 June 2011 along with the selection of historical operational and financial information are available at the Group s corporate website ( The Group s interim condensed consolidated financial information is presented in US Dollars, which the Group s management believes to be the most useful for readers of the financial statements and which is the functional currency of the Company and certain other entities in the Group. The functional currency of the Group s operating companies for the periods under review was (a) for the Russian Ports segment, the rouble, (b) for Oil Products Terminal segment, the Estonian kroon (until 31 December 2010) and the euro (from 1 January 2011), and (c) for the Finnish Ports segment, the euro. Certain financial and operational information which is derived from management accounts is marked in this presentation with an asterisk {*}. In this presentation the Group has used the certain non-ifrs financial information (not recognized by EU IFRS or IFRS) as supplemental measures of the Group s operating performance. Information (non-ifrs and operational measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions are provided on pages of this presentation. Rounding adjustments have been made in calculating some of the financial and operational information included in this presentation. As the result, numerical figures shown as totals in some tables may not be exact arithmetic aggregations of the figures that precede them. Data on container and fuel oil markets has been sourced from ASOP (Association of Russian Sea Ports) and Argus Nefte Trasnport respectively. 2

4 Contents Page I. Global Ports at a Glance 4 II. Highlights 5 III. Key Market Developments in 1H IV. Commercial Initiatives in 1H V. Operational Performance 9 VI. Financial Review 10 VII. Promises Delivered, Key Actions Going Forward 13 VII. Key Takeaways 14 VIII. Appendices 15 3

5 Global Ports at a Glance Market leader in containers and fuel oil exports Well invested terminals in key gateways of North West and Far East of Russia 30% market share of overall Container Throughput in the Russian Federation Ports in 1H 2011 (1) 25% market share of the Former Soviet Union Fuel Oil Export Market in 1H 2011 (2) GPI Containers and Oil Products Moscow Global Ports terminals Russia GPI Containers Market demand based expansion Capacity already in place for growth in container handling in current and next year Discretionary and demand based CapEx plan Majority of land in ownership, key approvals for capacity expansion in place Terminal land ownership 1/4 3/4 Land Land owned/long-term owned Long-term lease lease Resilient and profitable operations Blue chip client base in containers and oil products 70/30 split of consolidated revenues between container terminals and oil products operations (3) Low leverage, Net Debt/LTM Adjusted EBITDA of 0.2x* ROCE of 21%* in 1H 2011 ROCE dynamics 21%* 9%* 1H H 2011 Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages (1) Source: ASOP, defined as throughput of ports located in Russian Federation without transit cargo volumes; company data (2) Source: ARGUS Nefte Transport 2-7, 2011; Company data. (3) Based on the interim condensed consolidated financial information (unaudited) for the six month period ended 30 June 2011, adjusted for the effect of proportionate consolidation. 4

6 1H 2011: Strong outperformance in containers, improved profitability and interim dividend Strong market outperformance in containers Global Ports Gross Container Throughput increased by 71% in 1H 2011 against 42% (1) growth of Container Throughput in the Russian Federation Ports Market share in containers up to 30% (1) (25% (1) in 1H 2010) Top line growth and improved profitability Revenue up 57% period-on-period to USD mln Adjusted EBITDA up 82% period-on-period to USD 145.0* mln Adjusted EBITDA Margin up from 48%* to 56%* period-on-period ROCE up to 21%* EPS up 98% period-on-period to USD 0.17 per share Disciplined CapEx, low leverage, interim dividend CapEx plan on track, USD 49.1 mln (2) already invested 1H 2011 Net Debt down 52% (3) to USD 66.5* mln, Net Debt / LTM Adjusted EBITDA ratio of 0.2x* Interim dividend of USD 0.18 per GDR (4) Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages (1) Source: ASOP (2) Provided on a cash basis. (3) Compared to the end of 2010 (4) Excluding USD 25 mln paid in June Each GDR represents an interest in three ordinary shares. 5

7 000 TEU mln TEU Key Market Developments in 1H 2011: Containers Container throughput in Russia (1) is growing... Container capacity utilization is increasing 1,567 42% 2,221 Capacity utilization 3.5* 67% * 77% % 5.3* 6.3 Source: ASOP, company estimates 1H H 2011 driven by economic revival 1H 2011 growth driven by deferred demand and economic growth GDP up 3.7% (3) in 1H 2011 Consumer lending up 24% (5) in 1H 2011 compared to 1H F 2012F Source: Drewry (2) Container Throughput Container capacity driven by structural growth of the market Container capacity utilization (4) levels in Russia are improving Container penetration remains fundamentally low, containerization level is suboptimal in many key industries (2) 7.6% in food 21.8% in machinery and equipment 35.4% in non-food consumer goods Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages (1) Container Throuhgput of the Russian Federation Ports (2) Drewry, Russia s container volumes including transit cargo volumes via Finland and the Baltic countries. (3) Source: Rosstat. (4) Container capacity utilisation is defined as annualised container throughput for the corresponding period divided by annual container handling capacity for the period. (5) Source: Central Bank of Russia 6

8 mln tonnes Key Market Developments in 1H 2011: Fuel Oil Export Fuel Oil Export Market is growing 30.7 Source: Argus Nefte Transport 13% H H 2011 with the Baltic Basin increasing its share Increasing competitiveness of the Baltic region, share of the Baltic region increased from 65% (1) in 1H 2010 to 67% (1) in 1H 2011 Further growth in export requirements for dark oil products is expected full launch of TANEKO refinery during 2H 2011 improved refinery utilization in Russia and Belorussia Key market trends Increase of long-haul shipments to North America and Asia requiring Accumulation of large parcels for VLCC ships driving longer storage times Demand for segregated storage along with blending capabilities (providing cargo owners with opportunity to sell right blend at maximum price) Sizeable railway unloading capacity (key for fuel oil year round offtake) No interruptions due to ice conditions New oil taxation in Russia («the proposal») Aiming to stimulate crude production as well as to secure stable domestic gasoline pricing Reallocation of margin from refining to crude oil production Refining in Russia in the current form remains commercially viable Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages (1) Source: Argus Nefte Transport 7

9 Commercial initiatives success in 1H 2011 Russian Ports segment (containers) Increased share of mainline customers PLP attracted new weekly services from the global liner operator CMA CGM, MSC and OOCL recommenced services Moby Dik attracted two new services from Maersk Line and Unifeeder VSC attracted new direct services from mainland China by Maersk Line and Sasco New value added services introduced PLP introduced direct ocean container service of Maersk from Morocco Additional scheduled train services introduced to shorten transit time PLP and Yanino connected by direct block train service VSC increased block train volumes and introduced new routes Oil Products Terminal segment Continue to develop VEOS facility in line with market evolution from simple throughput terminal to sophisticated hub terminal Accumulating of large parcels of cargo for VLCC shipping Segregated storage Blending to required quality Commercial initiatives in 1H 2011 Enlarged customer base Increasingly diversified cargo base (including VGO and jet fuel) Continued to upgrade terminal infrastructure allowing to handle wider range of oil products and to expand terminal services Focus not on cargo throughput but terminal revenues/ profitability per cbm 8

10 mln tonnes 000 TEU Operational Performance Russian Ports segment container terminals Russian Ports segment Gross Container Throughput Russian Ports segment Gross Container Throughput increased by 71% driven by market recovery, GPI s commercial initiatives and available capacity 71% 669* Container capacity utilization (1) improved to 69%* in 1H * Strong growth in cars (90%) and Ro-Ro (74%) handling due to deferred and strong recovery in auto sales and revival of construction/agro markets 1H H 2011 Gross Container Throughput Oil Products terminal segment Oil products Gross Throughput steady at 8.8* mln tonnes, increasingly diversified cargoes handled Trend to longer average storage times (to accumulate large parcels) as the share of shipments with large tankers is increasing Record performance in rail unloading logistics with 1,000 rail tank cars per day reached during harsh winter months Oil Products Terminal segment Gross Throughput 8.8* 0% 8.8* 1H H 2011 Gross Throughput Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages (1) Container capacity utilization is defined as annualized container throughput for the corresponding period (for the half-year period, container throughput in first six month of respective year multipled by two) divided by annual container handling capacity for the period. It excludes the Group s inland container terminal, Yanino. 9

11 mln USD mln USD mln USD 1H 2011 Financial Highlights: top line growth, improved profitability and strong cash flow Consolidated revenue up 57% in 1H 2011 Revenue Strong Revenue growth Driven mainly by 87% revenue growth in the Russian Ports segment Oil Products Terminal segment revenue increased by 21% % despite flat volumes H H 2011 Resulting in strong Adjusted EBITDA and Adjusted EBITDA Margin growth Adjusted EBITDA increased by 82% to USD 145.0* mln Adjusted EBITDA Margin increased from 48%* to 56%* Key cost items under control, strong operating leverage One-off costs related to IPO of USD 2.2 mln Margin Adjusted EBITDA 54%* 48%* 56%* 206.6* 79.7* 82% 145.0* Strong Cash Flow, low leverage, substantial dividend Cash generated from operations increased by 93% to USD mln Net Debt to LTM Adjusted EBITDA improved to 0.2x* at 30 June 2011 Interim dividend of USD 28.2 mln (1) (USD 0.18 per GDR) H H 2011 Cash generated from operations 93% H H 2011 Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages Source: Company IFRS financial statements and unaudited IFRS condensed financial information for 1H 2011 and 1H Note: Financial results including 100% of results of joint ventures within segment before effect of proportionate consolidation. (1) Calculated excluding USD 25 mln already paid in June Each GDR represents an interest in three ordinary shares. 10

12 mln USD mln USD 000 TEU Financial Performance: Russian Ports segment Strong revenue growth (+87%) driven by Volume growth both in container handling (+71%) and other cargoes throughput (Ro-Ro +74%, cars +90%) Strong pricing in containers Gross Container Throughput 936* 390* 71% 669* Total cost of sales, administrative, selling and marketing expenses increased by 34% / USD 23.5 mln well below revenue growth 40% / USD 9.0 mln growth of staff costs as a result of increased throughput volumes and wage inflation which was offset by increased outsourcing 105% / USD 3.5 mln growth of transportation expenses mainly as a result of increased throughput, increased railway operations of VSC and inflation 78% / USD 2.5 mln growth of fuel, electricity and gas expenses largely due to increased throughput and increased prices for these supplies Adjusted EBITDA increased by 124% to USD 110.8* mln Strong growth of Adjusted EBITDA Margin (from 52%* in 1H 2010 to 62%* in 1H 2011) as a result of significant operating leverage and continued re-focussing of the business CapEx up by USD 32.1 mln to USD 46.0 mln Reefer yard, customs inspection zone, terminal infrastructure and handling equipment H H 2011 Revenue * Margin 49.4* 87% 124% H H 2011 Adjusted EBITDA 60%* 52%* 62%* 110.8* H H 2011 Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages Source: Company IFRS financial statements for 2010 and unaudited IFRS condensed financial information for 1H 2011 and 1H Note: Financial results including 100% of results of joint ventures within segment before effect of proportionate consolidation. The 5% appreciation of the average exchange rate of the Russian rouble against the US dollar additionally increased the US dollar value of the segment s costs denominated primarily in roubles. 11

13 mln USD mln USD mln tonnes Financial Performance: Oil Products Terminal segment Revenue increased by 21% as a result of Increasingly diversified cargo mix and improved pricing Total cost of sales, administrative, selling and marketing expenses increased by 13%, well below revenue growth 18% / USD 2.2 mln growth of fuel, electricity and gas expenses due to increase of electricity tariffs 16% / USD 1.9 mln growth of staff costs as a result of increased staff as well as wage inflation 6% / USD 2.2 mln growth of transportation expenses Gross Throughput 18.2* Revenue % 8.8* 8.8* H H % Adjusted EBITDA increased 29% to USD 81.3* mln Adjusted EBITDA Margin increased from 49%* in 1H 2010 to 53%* in 1H H H 2011 Adjusted EBITDA CapEx of USD 6.8 mln Investments into increased terminal interconnectivity, truck unloading rack, railcar unloading facilities 50%* 133.8* 49%* 53%* Margin 62.8* 29% 81.3* Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages H H 2011 Note: Average Financial results Including 100% of results of joint ventures within segment before effect of proportionate consolidation. The 6% average appreciation of the Euro against the US dollar in the period additionally increased the US dollar value of the segment s revenues and costs denominated primarily in Euros. Source: Company IFRS financial statements for 2010 and unaudited IFRS condensed financial information for 1H 2011 and 1H

14 Promises Delivered, Key Actions Going Forward Promises delivered in 1H 2011 Key actions going forward 1 Capitalise on container market growth in Russia 71% growth of Gross Container Throughput in Russian Ports segment Increased market share in containers to 30% (1) Increase container throughput by filling recently commissioned capacity Demand based upgrade of existing terminal facilities 2 Continue to transform VEOS from simple throughput terminal to sophisticated hub terminal Continued to offer of value added services, increased revenue / EBITDA per cbm Increasingly offer value added services Continue to enhance product and client diversification 3 Continue to optimise operations Total cost of sales, selling and administrative expenses increased substantially less than revenues Increase terminal productivity Achieve service excellence across terminal facilities 4 Expansion of terminal portfolio through greenfield development and selective M&A CapEx program on track, secured land plots enabling capacity extension of VEOS Actively seek, evaluate and invest in greenfield opportunities Pursue disciplined and selective M&A Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages (1) Market share calculated as Global Ports Russian Ports segments Gross Container Throughput in corresponding period divided by Container Throughput in the Russian Federation Ports in the same period. Sourced from ASOP ( Association of Sea Commercial Ports, 13

15 Key Takeaways Leading business Nr. 1 in the Russian container industry Nr. 1 in fuel oil exports from Former Soviet Union in an attractive market Structural growth due to increasing containerization High barriers to entry focussed on growth Well invested terminals with available capacity for container handling volumes growth in 2011 and 2012 Secured further capacity expansion potential, expansion fully discretionary, subject to market demand Adjusted EBITDA up 82% in 1H 2011 and resilience Substantial share of container throughput provided by mainline operators VEOS has changed to a hub terminal providing unique set of services, operating on resilient fuel oil handling market Track record of successful navigation through the crisis with Adjusted EBITDA Margin of 48%* in 2009 Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages

16 Appendices 15

17 Consolidated Income Statement Summary Income Statement '000 USD H H 2011 Revenue 512, , , , ,693 Cost of sales (244,250) (160,429) (198,509) (98,270) (123,276) Gross profit 268, , ,928 67, ,417 Administrative, selling and marketing expenses (53,439) (28,202) (30,618) (14,894) (21,636) Other gains/(losses) net 17,045 3,220 3,641 2,127 1,260 Operating profit 231,650 89, ,951 54, ,041 Finance income /(costs) - net (34,422) (12,002) (14,795) (5,954) 2,769 Profit before income tax 197,228 77, ,156 48, ,810 Income tax expense (42,717) (8,671) (23,160) (7,182) (36,443) Profit for the period 154,511 68, ,996 41,386 82,367 Profit attributable to: Owners of the Company 122,215 65, ,390 38,634 76,567 Non-controlling interests 32,296 2,615 9,606 2,752 5, ,511 68, ,996 41,386 82,367 Adjusted EBITDA 303,218* 130,468* 206,570* 79,653* 144,991* Adjusted EBITDA Margin 59%* 48%* 54%* 48%* 56%* Source: Company IFRS financial statements and unaudited IFRS condensed financial information for 1H

18 Consolidated Balance Sheet Summary Balance Sheet '000 USD 31-Dec Dec Dec Jun-11 PP&E (incl. prepayments) 899, , , ,629 Other non-current assets 207, , , ,531 Cash and equivalents (1) 102,701 48,093 66, ,499 Other current assets 91,066 43,288 57,366 73,412 Total assets 1,301,244 1,187,185 1,198,025 1,464,071 Capital and reserves 747, , ,465 1,035,143 Minority interest 17,642 20,071 20,884 23,274 LT borrowings 307, , , ,830 Other non-current liabilities 106, , , ,401 ST borrowings 66,775 50,203 36,091 45,139 Other current liabilities 55,730 44,684 51,900 56,284 Total equity and liabilities 1,301,244 1,187,185 1,198,025 1,464,071 Source: Company IFRS financial statements and unaudited IFRS condensed financial information for 1H (1) Including bank deposits with maturity over 90 days. 17

19 Consolidated Cash Flow Statement Summary Cash Flow Statement '000 USD H H 2011 Cash generated from operations 329, , ,295 69, ,292 Tax paid (60,002) (11,575) (21,862) (5,890) (19,571) Net cash from operating activities 269, , ,433 63, ,721 Cash flow from investing activities Cash flows related to formation of Group (466,713) Purchases of intangible assets (347) (512) (212) (26) (20,286) Purchases of property, plant and equipment (179,782) (58,983) (52,211) (11,744) (49,118) Proceeds from sale of property, plant and equipment 5,933 2, Loans granted to related and third parties (52,302) (453) (769) - (1,286) Loans and finance lease repayments received 11,198 43, ,684 Interest received 5,936 2, Investment in bank deposits with maturity over 90 days - (4,000) (19,201) - - Cash from bank deposits with maturity over 90 days - - 4,000 4,000 19,590 Net cash used in investing activities (676,077) (15,040) (66,488) (7,285) (34,190) Net cash from/(used) in financing activities 434,713 (172,741) (104,223) (42,290) 24,669 Net increase/(decrease) in cash and cash equivalents 28,184 (46,621) 3,722 13, ,200 Cash and cash equivalents at the beginning of the year 71, ,701 44,093 44,093 47,355 Exchange gains/(losses) on cash and cash equivalents 2,836 (11,987) (460) (1,367) 2,944 Cash and cash equivalents at the end of the period 102,701 44,093 47,355 56, ,499 Source: Company IFRS financial statements and unaudited IFRS condensed financial information for 1H

20 Selected operational information (1) Gross Throughput 1H H 2011 Change, % 2010 Russian Ports segment Containerised cargo (thousand TEUs) PLP % 541 VSC % 254 Moby Dik % 141 Total (2) % 936 Non-containerised cargo (thousand) Ro-Ro (units) % 15 Cars (units) % 45 Refrigerated bulk cargo (tonnes) % 107 Other bulk cargo (tonnes) (3) % 975 Finnish Ports segment Containerised cargo (thousand TEUs) % 159 Oil Products Terminal segment Oil products (million tonnes) % 18.2 (1) All information derived from management accounts (2) Total throughput of Russian Ports excludes the throughput of Yanino which, in 2010, 1H 2010 and 1H 2011, was 32 thousand TEUs, 16 thousand TEUs and 39 thousand TEUs, respectively. (3) Other bulk cargo handled by Russian Ports exclude Yanino volumes which, in 2010, 1H 2010 and 1H 2011, were 142 thousand tonnes, 75 thousand tonnes and 107 thousand tonnes, respectively. 19

21 Selected operational information (1) (continued) Number of employees (end of the period) 1H H 2011 Change, % 2010 Russian Ports 2,569 2,426-6% 2,482 Oil Products Terminal % 533 Finnish Ports % 109 Holding % 9 Total 3,181 3,063-4% 3,133 Capacity (as of 30 June 2011) Russian Ports segment Finnish Ports segment Russian container terminals (excluding Yanino) Annual container handling capacity (thousand TEUs) PLP 1,000 MLT Kotka (thousand TEUs) 90 VSC 550 MLT Helsinki (thousand TEUs) 270 Moby Dik 400 Total 1,950 Total 360 Yanino, inland container terminal Oil Products Terminal segment Annual container handling capacity (thousand TEUs) 200 Storage Capacity (thousand cbm) 1,026 Annual general cargo handling capacity (thousand tonnes) 400 (1) All information derived from management accounts 20

22 Development of Global Ports Portfolio Build-up Acquired three principal container terminals in Russia and two in Finland Acquired oil products terminal in Estonia Acquired land for development of inland container terminal near St. Petersburg Focus on: Business Integration and Add-on Acquisitions Business integration Internal controls Corporate governance Acquired additional equity stakes in key container and oil products terminals Merger of oil products terminal with adjacent terminal owned by Royal Vopak Focus on Organic Growth and Operating Improvements Invested approx. USD 291* mln (1) between 2008 and 2010 in development of terminals Diversified client base and increased the share of main-line operators Commissioned operations at inland container terminal near St. Petersburg in 2010 IPO and listing on the Main Market of the London Stock Exhcage in June Throughput 2010 Throughput (2) Containers ( 000 TEU) 331* CAGR : 27% Containers ( 000 TEU) 1,095* Oil products (mln tonnes) 5.9* CAGR : 25% Oil products (mln tonnes) 18.2* Source: Company data. (1) On a cash basis. (2) Excluding throughput in Yanino. 21

23 Corporate Structure and Strategic Partners TIHL Free-float 75% 25% Global Ports 75% 100% 75% 75% 75% 50% VSC PLP Moby Dik Yanino Finnish Ports VEOS Russian Ports segment Entity Partner Share Partner Profile VSC DP World 25% One of the largest marine terminal operators in the world 49 terminals in 31 countries worldwide (1) VEOS Royal Vopak 50% Global market leader in independent bulk liquid storage terminals 79 terminals in 30 countries worldwide (1) Moby Dik, MLT, CD, Yanino Container Finance Ltd Oy 25% in each Finnish investment company with extensive experience in transportation Shareholder of door-to-door pan-european container transport company Containerships Source: Companies data. (1) As of June

24 Corporate Governance Corporate Structure Key Board Members General Meeting of Members Remuneration Committee Board of Directors (11 Directors) Nomination Committee Nikita Mishin Chairman 15 years of industry experience Audit and Risk Committee Internal Audit Alexander Nazarchuk CEO 15 years of industry experience Capt. Bryan Smith (Senior INED) has been on the Board since 2008, chairs Nomination and Remuneration Committees; also serves as Chairman of the BoD of Sydney Ports Corporation Siobhan Walker (INED) chairs Audit and Risk Committee; also serves as managing director in the Financial Sponsors Coverage Group at ING Bank NV, London Internal Audit is responsible for monitoring of a system of risk management, control, and governance processes for adequacy and functioning in a proper manner and accountable to the Audit and Risk Committee of the Board Capt. Bryan Smith Chairman of Nomination and Remuneration Committees, INED since 2008 Over 30 years of industry experience Siobhan Walker Chairman of Audit and Risk Committee, INED since 2011 Over 19 years of banking experience Source: Company data. 23

25 Location of Key Container Market Participants Baltic Sea Basin Far East Basin PLP Finnish transit VSC Capacity: 550,000 TEU Russia Okhotsk Sea Capacity: 1,000,000 TEU VMTP + VCT MD Capacity: 400,000 TEU Norwegian Sea Baltic countries transit Finland Russia St. Petersburg Baltic region Sea Estonia Moscow Latvia Lithuania Kaliningrad Region Capacity: 400,000 TEU Mongolia China Vladivostok Black Sea Basin Nakhodka Japanese Sea Japan NCSP Capacity: 530,000 TEU Russia FCT Capacity: 1,250,000 TEU Ukraine NUTEP Capacity: 200,000 TEU Baltic Stevedoring Co Capacity: 200,000 TEU 4 th Stevedoring Co (1) Capacity: 0 TEU Romania Bulgaria Black Sea Turkey Novorossiysk Georgia Caspian Sea Source: Drewry Note: Container handling capacities with respect to container terminals of the Group as at 31 December 2010 are presented on a 100% basis. (1) Commissioned in Q

26 Location of Key Oil Products Market Participants Estonia VEOS Vesta Alexela Vysotsk Throughput: 18.2 mln tonnes Storage Capacity: Dark: 771,000 cbm Light: 255,000 cbm Throughput: 2.0 mln tonnes Storage Capacity: Dark: 315,000 cbm Light: 86,000 cbm Throughput: 0.9 mln tonnes Storage Capacity: Dark: 443,500 cbm Light: 317,900 cbm Throughput: 4.6 mln tonnes Storage Capacity: Dark: 300,000 cbm Light: 160,000 cbm Latvia Sweden Riga Ventspils Finland Primorsk Throughput: 0.4 mln tonnes Storage Capacity (3) : Light: 2,896,000 cbm Throughput: 2.6 mln tonnes Storage Capacity: Dark: 135,000 cbm Light: 1,543,000 cbm Estonia Latvia Lithuania Throughput: none (1) Storage Capacity: Light: 1,140,000 cbm Crude: 900,000 cbm Russia Klaipeda Kaliningrad Ust-Luga Belarus St. Petersburg Throughput: 8.6 mln tonnes Storage Capacity (2) : Light: 636,000 cbm Throughput: 0.5 mln tonnes Storage Capacity (2) : Light: 90,700 cbm Throughput: n/m Storage Capacity: Dark: 300,000 cbm Ukraine Throughput: 9.5 mln tonnes Storage Capacity: Dark: 303,000 cbm Light: 51,000 cbm Source: Company data for information on VEOS, Drewry data for other ports in the Baltic Sea Basin. Note: fuel oil throughput in 2010 and storage capacities as at April 2011 are represented. (1) Primorsk Port primarily handles crude oil and light oil products. (2) Some capacity is switchable between light and dark oil products. (3) Negligible dark oil products storage capacity. Independent Owned or rented by traders Owned by major oil companies 25

27 Definitions Adjusted EBITDA (a non-ifrs financial measure) is defined as profit for the period before income tax expense, finance income/(costs) - net, depreciation of property, plant and equipment, amortisation of intangible assets, other gains/(losses)-net, impairment charge of property, plant and equipment and impairment charge of goodwill. Adjusted EBITDA Margin (a non-ifrs financial measure) is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage. Baltic Sea Basin: the geographic region of northwest Russia, Estonia and Finland surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg, Tallinn, Helsinki and Kotka. Container Throughput in the Russian Federation Ports is defined as total container throughput of the ports located in the Russian Federation excluding transit cargo volumes. Far East Basin: the geographic region of southeast Russia, surrounding the Peter the Great Gulf, including Vladivostok and the Nakhodka Gulf, including Nakhodka on the Sea of Japan. Finnish Ports segment consists of two terminals in Finland, MLT Kotka and MLT Helsinki (in port of Vuosaari), and three container depots (in each of which Container Finance currently has a 25% effective ownership interest). The financial results of the Finnish Ports segment are proportionally consolidated. Fuel Oil Export Market is defined as the export of fuel oil from ports located in the Former Soviet Union countries. Gross Throughput is throughput shown on a 100% basis for each terminal, including terminals held through joint ventures and proportionally consolidated Gross Container Throughput represents total container throughput of a Group s terminal or a Group s operating segment shown on a 100% basis. For the Russian Ports segment it excludes the container throughput of the Group s inland container terminal, Yanino. LTM Adjusted EBITDA (a non-ifrs financial measure) represents Adjusted EBITDA for the last twelve months. Net Debt (a non-ifrs financial measure) is defined as a sum of current borrowings and non-current borrowings, less cash and cash equivalents and bank deposits with maturity over 90 days. Oil Products Terminal segment consists of the Group s 50% ownership interest in VEOS (in which Royal Vopak currently has a 50% effective ownership interest). The financial results of the Oil Products Terminal segment are proportionally consolidated. 26

28 Definitions (continued) PLP includes Petrolesport OAO, Farwater ZAO and various other entities (including some intermediate holdings) that own and manage a container terminal in St. Petersburg port, North-West Russia. The Group owns a 100% effective ownership interest in PLP. The results of PLP have been fully consolidated in the Group s interim condensed consolidated financial information for the six months ended 30 June ROCE (Return on capital employed, a non-ifrs financial measure) is defined as operating profit for the last twelve months divided by the sum of Net Debt and total equity, averaged for the beginning and end of the last twelve month period. Ro-Ro, roll on-roll off: cargo that can be driven into the belly of a ship rather than lifted aboard. Includes cars, buses, trucks and other vehicles. Russian Ports segment consists of the Group s 100% interest in PLP, 75% interest in VSC (with DP World having 25% interest), and 75% interest in Moby Dik and Yanino (in each of which Container Finance currently has a 25% effective ownership interest). The financial results of Moby Dik and Yanino are proportionally consolidated and the financial results of VSC are fully consolidated. TEU is defined as twenty-foot equivalent unit, which is the standard container used worldwide as the uniform measure of container capacity; a TEU is 20 feet (6.06 metres) long and eight feet (2.44 metres) wide and tall. VEOS includes AS V.E.O.S. and various other entities (including an intermediate holding) that own and manage an oil products terminal in Muuga port near Tallinn, Estonia. The Group owns a 50% effective ownership interest in VEOS. The remaining 50% ownership interest is held by Royal Vopak. The results of VEOS have been proportionally consolidated in the Group s interim condensed consolidated financial information for the six months ended 30 June VLCC is defined as very large crude carrier: a ship that can carry up to two million barrels of crude oil and has a maximum deadweight size of 300,000 metric tonnes. VSC includes Vostochnaya Stevedoring Company OOO and various other entities (including some intermediate holdings) that own and manage a container terminal in Vostochny port near Nakhodka, Far-East Russia. The Group owns a 75% effective ownership interest in VSC. The remaining 25% ownership interest is held by DP World. The results of VSC have been fully consolidated in the Group s interim condensed consolidated financial information for the six months ended 30 June

29 INVESTOR RELATIONS Priit Pedaja Sergei Stikharev Phone: Web: 28