1Q 2013 Performance Review. 14 May 2013

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1 1Q 2013 Performance Review 14 May 2013

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 Results Highlights ht

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 Q 2013 Performance Review

5 Group 1Q13 Core EBIT improves US$148m YoY 3000 US$m Core EBIT 1Q13: US$(85)m 1Q12: US$(233)m US$m (200) 0 (400) Revenue (LHS) Net profit (RHS) Core EBIT (RHS) Page 5 14 May Q 2013 Performance Review

6 2. 1Q 2013 Financial i Performance

7 Group Financial Highlights 1Q13 net profit of US$76 million US$m 1Q13 1Q12 % Revenue 2,371 2,378 - Core EBITDA (2) (151) (99) Core EBIT (before non-recurring items) (85) (233) (64) Non-recurring items , EBIT 107 (232) n.m. Net profit/(loss) to owners of the 76 (254) n.m. company Page 7 14 May Q 2013 Performance Review

8 Financial Highlights by Business Segment Improved Liner performance due to cost & efficiency focus, Logistics continues revenue & profit growth Revenue (US$m) 1Q13 1Q12 % Liner 1,967 2,010 (2) Logistics Elimination (23) (26) (11) Total Revenue 2,371 2,378 - Core EBIT (US$m) 1Q13 1Q12 % Liner (101) (246) (59) Logistics Total Core EBIT (85) (233) (64) Page 8 14 May Q 2013 Performance Review

9 Group Balance Sheet Highlights US$m 5 Apr Dec 12 (Restated) 1 Total Assets 8,893 8,219 Total Liabilities 6,629 6,026 Total Equity 2,264 2,193 Total Debt 4, ,976 Total Cash 1, Net Debt 3,110 3,079 Gearing (Gross) 1.95x 1.81x Gearing (Net) 1.37x 1.40x NAV per share (US$) (S$) 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 Page 9 14 May Q 2013 Performance Review

10 Group Cash Flow Highlights US$m 1Q13 1Q12 Cash & Cash Equivalents Q Cash Inflow / (Outflow) Operating Activities 15 (132) Investing/Capex Activities (48) (36) Financing Activities Cash & Cash Equivalents Q1 1, Page May Q 2013 Performance Review

11 Group Capital Expenditure US$m 1Q13 1Q12 1. Vessels Equipment / Facilities Drydock IT Others 3 1 Total Page May Q 2013 Performance Review

12 3. Liner

13 Liner 1Q13 Results Highlights Weak global economy, industry oversupply & off peak season dampens rates and volume Efficiency, i cost discipline i & 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 May Q 2013 Performance Review

14 Soft global economy & industry oversupply weaken spot rates post-chinese New Year 1600 SCFI Index, Monthly Average 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 May Q 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. Core EBIT margin (%) (5.1) (12.2) 1Q13 Core EBIT improved over 1Q12 due to a better cost base and profit focus. 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$3,471. 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 May Q 2013 Performance Review

16 Volume and Average Revenue/FEU Trend US$/FEU 3,300 Period Average Weekly Volume (RHS) Average Revenue per FEU (LHS) 1Q12 Average Revenue/FEU US$2,420 1Q13 Average Revenue/FEU US$2,376 '000 FEU/ week , , ,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 P Period Note: Average Period volumes are normalised based on number of weeks in the period Page May Q 2013 Performance Review

17 Operational Update Volume ( 000 FEUs) 1Q13 1Q12 % Transpacific Intra-Asia (3) Asia-Europe (17) Latin America (4) Transatlantic Total (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, Latin America 3,591 3,405 5 Transatlantic 2,628 2,974 (12) Total 2,376 2,420 (2) Note: Based on point of sailing and inclusive of headhaul and backhaul trade. Page May Q 2013 Performance Review

18 Maintained >90% utilization Headhaul utilization Backhaul utilization 100% 95% 95% 92% 91% 94% 92% 93% 94% 94% 92% 93% 90% 91% 91% 91% 85% 87% 86% 85% 89% 88% 80% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q Note: Backhaul % based on deadweight utilization Page May Q 2013 Performance Review

19 Fleet renewal program to lower slot costs TEUs 180, ,000 8,100 TEU 9,000 TEU 14,000 TEU 14 Total vessels 140, , ,000 80,000 6 x 14,000 TEU 10 4 x 14,000 TEU 60,000 40,000 20, x 9,000 TEU 6 x 9,000 TEU 2 x 8,100 TEU Note: 5 out of the 10 x 14,000 TEU vessels for delivery between 2013 and 2014 will be chartered out to MOL Page May Q 2013 Performance Review

20 Fleet Renewal Improving slot costs with more efficient newbuild ships APL Fleet Start FY2013 APL Fleet End 1Q13 Net capacity 129 vessels 587,000 TEUs change +18,000 TEU 125 vessels 605,000 TEUs Owned:41% Owned: 42% +3 vessels Chartered: 59% Chartered: 58% -7 vessels Average size Average size 4,550 TEU 4,840 TEU 1 Jan Apr 2013 Current Charters expiring ii 2Q13 to vessels* 139,000 TEUs Future * Linehaul vessel charters only Note: APL fleet capacity as at end-1q12 was 615,000 TEU Page May Q 2013 Performance Review

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 May Q 2013 Performance Review

22 4. Logistics

23 Logistics 1Q13 Results Highlights Revenue of US$427m, up 8% YoY Core EBIT of US$16m, up 27% YoY Broad-based growth 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% 3% to 3.7% Page May Q 2013 Performance Review

24 Logistics Results Highlights US$m 1Q13 1Q12 % Revenue Core EBITDA Core EBIT EBIT Core EBIT margin (%) Logistics achieved revenue of US$427 million in 1Q13, growing g 8% year-on-year y (YoY) 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 May Q 2013 Performance Review

25 Logistics continues growing profitably in 1Q13 Broad-based growth from growing customer pool Business growth & cost discipline improves Core EBIT Continued focus on emerging market growth opportunities US$m 1Q Logistics Revenue US$m 1Q Logistics Core EBIT % 5 +27% 250 1Q12 1Q13-1Q12 1Q13 Page May Q 2013 Performance Review

(Americas) $39 $271 $34 $263 9% (Europe) 9% (Europe) 1Q13 Revenue Breakdown by

26 APL Logistics Revenue Trend by Region Growth led by Asia/Middle East, up +21% YoY 27% (Asia/Middle East) 24% (Asia/Middle East) $117 $97 64% (Americas) 67% (Americas) $39 $271 $34 $263 9% (Europe) 9% (Europe) 1Q13 Revenue Breakdown by Region (US$m) 1Q12 Revenue Breakdown by Region (US$m) Page May Q 2013 Performance Review

27 Performance Breakdown Growth across both business segments US$m 1Q13 1Q12 % Revenue Contract Logistics International Services Core EBIT Contract Logistics International Services Core EBIT Margin (%) Contract Logistics International Services Page May Q 2013 Performance Review

28 Revenue and Core EBIT Margin Trend Weekly Revenue (US$m) 35 Weekly Revenue (US$m) (LHS) Core EBIT Margin (%) (RHS) Core EBIT Margin (%) 15.0% % % 3.8% 4.8% 5.1% 33% 3.3% 2.5% 5.2% 6.0% 3.7% 5.0% 10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 0.0% Page May Q 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 contribution Continue to look for growth opportunities Page May Q 2013 Performance Review

30 5. Group Outlook

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 will continue its focus on cost efficiency, i 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 Page May Q 2013 Performance Review

32 Appendix

33 Group Fuel and Currency Exposures Bunker The Group continues to recover part of its fuel price increases from customers through bunker adjustment factors. 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 May Q 2013 Performance Review

34 End of Presentation Thank You Neptune Orient Lines Ltd 456 Alexandra Road, NOL Building Singapore Tel: (65) Fax: (65) Company registration number : D Website:

YTD13 & 3Q 2013 Performance Review. 30 October 2013

YTD13 & 3Q 2013 Performance Review 30 October 2013 Forward Looking Statements The following presentation includes forward-looking statements, which involve known and unknown risks and uncertainties, that