Global ports strategy_update_presentation_2014

Global Ports Investments PLC

Reinforcing leadership

19 June 2014, St. Petersburg

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 and joint ventures, “Global Ports” or 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.

This presentation includes Unaudited Selected Illustrative Combined Financial Metrics representing selected information prepared based on estimates and assumptions

deemed appropriate by the Group. Global Ports together with NCC Group are referred to as the “Enlarged Group” or “Enlarged Global Ports”.

The information is limited to certain key indicators, remains preliminary, is unaudited, and provided for illustrative purposes only. It does not purport to represent what the

actual operational information results of operations or cash flows of the Enlarged Group would have been had the NCC Group acquisition occurred on 1 January 2013,

nor is it necessarily indicative of the operational information results or cash flows of any part of the Enlarged Group. Because of their nature, selected combined

information is based on a hypothetical situation and, therefore, do not represent the actual operational information results of operations or cash flows of the Enlarged

Group. The actual results of operations or cash flows of the Enlarged Group may differ significantly from the illustrative combined amounts reflected herein.

These materials may contain forward-looking statements regarding future events or the future financial performance of the Enlarged Group. 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 and its shareholders’ intentions,

beliefs or current expectations concerning, among other things, the Enlarged Group’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 Enlarged Group’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 assume any obligation 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

transportation industry or particularly in the ports operation segment, 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.

2Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 39-40

REFERENCE TO ACCOUNTS ANDOPERATIONAL INFORMATION

Unless stated otherwise all financial information in this presentation is extracted from the consolidated financial information of the Company for the year ended 31

December 2013 and prepared in accordance with International Financial Reporting Standards adopted by the European Union (“IFRS”) and the requirements of Cyprus

Companies Law, Cap. 113, and from the consolidated financial information of NCC (together with its subsidiaries and joint ventures “NCC” or “the NCC Group”) for the

year ended 2013, prepared in accordance with IFRS and the requirements of Cyprus Companies Law, Cap. 113.

The Global Ports Group’s audited consolidated financial statements for the year ended 31 December 2013 and NCC Group Limited and subsidiaries Consolidated

Financial Statements for the Year Ended 31 December 2013 are available at the Global Ports Group’s corporate website (www.globalports.com).

The financial information is presented in US dollars, which is also 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 Russian rouble, (b) for Oil Products Terminal segment and

for the Finnish Ports segment, Euro.

The functional currency for Russian subsidiaries of the NCC Group is the Russian Ruble, and for Cypriot subsidiaries, the United States Dollar (“USD”). For purposes of

the consolidated financial statements, the results and financial position of each NCC Group’s entity are expressed in USD, which is the functional currency of the Parent

and the presentation currency for the consolidated financial statements.

Certain financial information which is derived from management accounts is marked in this presentation with an asterisk {*}.

In this presentation the Group has used certain non-IFRS financial information as supplemental measures of the Group’s operating performance.

Information (including non-IFRS financial measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions

are provided at the end of this presentation.

Rounding adjustments have been made in calculating some of the financial and operational information included in this presentation. As a result, numerical figures

shown as totals in some tables may not be exact arithmetic aggregations of the figures that precede them.

Market share data has been calculated using the information published by the Association of Sea Commercial Ports (“ASOP”), www.morport.com, ARGUS Nefte

Transport and Drewry Financial Research Services Ltd (“Drewry”).


TODAY’S SPEAKERS

4

Alexander Nazarchuk,Chief Executive Officer

Aliona Ashurkova,Deputy Chief Executive Officer

Mikhail Loganov,Chief Financial Officer

Evgeny Zaltsman,Head of Business Development

Roy Cummins,Chief Commercial Officer

Anders Kjeldsen,Chief Operational Officer

Eduard Chovushyan,Managing Director of Petrolesport

Alexander Tikhov,Managing Director of First Container Terminal

Arnout Dirk Lugtmeijer,General Manager of Vopak E.O.S.

CONTENTS


Page

I. Establishing leadership: 2008-2013 6

II. Evolution of external environment 15

III. Strategy going forward 20

IV. Key takeaways 30

Appendices 31

2008 2013 2008 2013

ESTABLISHING LEADERSHIP: 2008 – 2013

6

MLT-Helsinki

Ust-Luga

Container

Terminal

Logistika-Terminal

Vostochnaya

Stevedoring Company

Yanino

Vopak E.O.S.

First Container Terminal

PetrolesportMoby Dik

MLT-Kotka

FAR EAST BASIN

BALTIC BASIN

BLACK SEABASIN

Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 39-40

(1) Source: ASOP, Drewry, Company estimates

(2) Capacity as at the beginning of 2008 and 2014, throughput data for full year 2008 and 2013; 2013 data includes NCC Group data

From a small regional player to the #1 container terminal operator in

Eastern Europe measured by throughput and capacity(1)

• 7 marine container terminals in Russia and Finland. Terminals

are located in Russia’s key container gateways, 2 inland

container facilities

• Almost one in two containers in Russia was handled by Global

Ports in 2013 compared to one in three in 2008

Track record of successful navigation through economic cycles

Marine container throughput and

capacity(2)

millio

n T

EU

1.84

1.33

2.77

4.06

Throughput Capacity

2.1x

2.2x

2008Capacity

PLP MD FinnishPorts

GlobalPorts

standalone2013

PLP VSC NCC TotalGlobal

Ports 2014

EXPANSION AND UPGRADE OF CONTAINER FACILITIES

Invested and already in operation

Invested and expected to be commissioned shortly

M&A

Group’s marine container capacity development(1)

1.842.37

0.40.1

0.5

0.350.12 0.06

C. USD 513 million invested over last six years into existing

facilities including:

● PLP converted from old timber port into modern

container facility with 1 mln TEU capacity, further 400

thousand TEU already constructed

● Car handling capacity of 190 thousand cars and heavy

Ro-Ro for 30 thousand units at PLP constructed from

scratch

● The largest reefer container yard in the Baltics created

● Coal handling facility of 1 mt established at VSC

● Moby Dik capacity expanded by 44% to 400 thousand

TEU

● Inland container depot (Yanino) developed

Following double-digit volume growth VSC is approaching

capacity (550 thousand TEUs):

● 100 thousand TEU capacity to be added in 2014

● Long-term capacity expansion master plan being

reviewed, current land plot enables to increase capacity

to over 2 million TEUs


4.06

1.69

7

millio

n T

EU

(1) Capacity as at the beginning of 2008 and 2014, throughput data for full year 2008 and 2013.

Car salesin Russia

2008

Car salesin Russia

2013

New carsimport2008

New carsimport2013

2008 2009 2010 2011 2012 2013

Car handling at PLP

ENTREPRENEURIAL USE OF SPACE IN MAJOR FACILITIES

Car and Ro-Ro handling facility built at PLP in 2008-2009(1), long-term contract with

market leader Rolf

● Car throughput increased 3 times between 2008 and 2013 despite declining

car import market

● PLP handled 13% of total imports of new cars into Russia in 2013 compared to

2% in 2008

● Yard also designed to handle containers when needed

● Investments are expected to be fully paid back this year

Coal handling started at VSC in 2011 to optimise terminal land usage and generate

complementary revenue stream

● Current capacity is 1 million tones p.a. and is not expected to increase due to

rapid growth in container throughput at VSC

● Investment in coal facility already fully paid back

Continue to handle scrap metal and other bulk cargo at PLP until crowded

out by containers

thousand u

nits

3628

43

67

105 108

-4%

-46%

Russian car market

2.72.6

1.50.8


num

ber

of

cars

8

(1) Further upgrades in 2010-2013

Source: PwC

2008 2009 2010 2011 2012 2013

GOING BEYOND SHIP-TO-SHORE OPERATIONS

9

Development of inland container depot business to add value outside

of seaports (stuffing and unstuffing and value-added operations)

● Development of Yanino Logistic Park

● Logistika Terminal was added to portfolio with NCC acquisition


VSC initiated block train service in late 2008 to increase terminal’s

attractiveness through predictable and reliable rail service

● Quality and pricing of railway dispatching from VSC is key to

its competitive positioning as 80% of containers leave

terminal by rail;

● Allowed to keep railway costs for VSC customers under

control in Ruble terms

More than 60% of all import containers leave the terminal on trains

organized by VSC

● VSC operates today c. 400 of its own flatcars

Developed block train service is a strong competitive advantage for

VSC

● Block train dispatches are cheaper and quicker

● Scheduled delivery with predictable price to Moscow,

Novosibirsk, Ekaterinburg and other key regions

Number of block trains organized by VSC

615

117

791

1,342

965

Units

0

2008 2009 2010 2011 2012 20132008 2013 2008 2013 2008 2013 2008 2013

OPTIMIZING OPERATIONS

10

Number of employees

Throughput, ‘000 TEU

Focus on performance improvement, increasing productivity

and efficiency to differentiate from competition

● PLP productivity almost doubled over 5 years to c. 30

STS moves per hour in 2013 making it one of the most

efficient terminals in Eastern Europe

Headcount(1) optimization and outsourcing of support functions

● PLP headcount reduced by 36% while container

throughput grew by 34% between 2008 and 2013

● VSC headcount reduced by 4% while container

throughput grew by 18% along with start of coal

operations between 2008 and 2013


PLP VSC

1,998

532

711 656 629

401475

-36%

+34% -4%1,272

+18%

(1) Calculated as the sum of production staff and administrative staff headcount

65.7%

51.0%59.9%

62.6% 64.1%

Russian Ports Segment EBITDA margin

Sustainably high EBITDA margin largely driven by strict

focus on efficiency of operations

● Margin above 50% achieved even in challenging

environment of 2009

Incremental increases in EBITDA margin in each of the

last 4 years

65.1%

Net cash fromoperating activities

Interest paid Cash CAPEX Free cash flow1.0

1.1

1.2

1.3

1.4

1.5

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Oil production Oil refiningDepth of oil refining Fuel oil production

EXPLOITING WINDOW OF OPPORTUNITY IN FUEL OIL

11

Rapid growth of fuel oil production and export in

Russia…

…created a window of opportunity for Vopak E.O.S. to

monetize its unique features

Demand driven growth in oil refining along with stable

refining depth increased fuel oil output

● Created strong demand for fuel oil export terminals

Global Ports consolidated smaller players in the port of

Muuga building the leading fuel oil transhipment hub by

2008

● Common user facility with premium infrastructure

providing for value-added services


Vopak E.O.S. generated high free cash flow

● Total FCF of USD 444 million(1) generated in

2008-2013

Distributions to Global Ports, a 50% shareholder of

Vopak E.O.S. amounted to USD 166 million between

2011 and 2013

Vopak E.O.S. cash flow generation in 2008-2013(1)

(1) Vopak E.O.S. 100% basis

Source: Minenergo, Company’s estimate

606

444

33 129

US

D m

illio

n

GROWING THE BUSINESS THROUGH IMPROVED CUSTOMER SERVICE

12

Centralized commercial function to reach all levels of client’s decision making process

● Ability to access different levels of decision making process as needed

● APM Terminals as a co-controlling shareholder helps to strengthen long-term relationships with clients through its global

commercial network

● Position Global Ports as premium facility with best quality service

Expansion of customer base: focus on building relationships with main line operators (MLOs) vs. servicing feeder traffic,

establishing deeper cooperation

● Share of MLO throughput increased from 42% in 2008 to 77% in 2013

Successful pricing campaigns for four consecutive years


Share of main line operators in throughput(1)

2008 2009 2010 2011 2012 2013

42%34%

42%

55%62%

77%

(1) 2013 data provided is on the illustrative combined basis, including NCC Group results in 2013

2.53.1

2.21.7

2.33.4

2008 2009 2010 2011 2012 2013

Net debt (Adjusted for NCCtransaction)

Net debt/Adjusted EBITDA (Adjustedfor NCC transaction)

Prudent capital allocation

MAINTAINING FINANCIAL FLEXIBILITY AND PRUDENT CAPITAL ALLOCATION

Financial flexibility provides for strategic

advantages

Maintain low leverage

● Historically low leverage, target Gearing Ratio of 1.5-2.0 times Net Debt / Adjusted

EBITDA established in 2012

Focus on best practice in corporate governance and transparency

● Understandable and credible player for all financing partners

Access to equity and debt financing

ROCE as the key investment criteria both for organic and non-organic growth

● Constantly high ROCE in 2010-2013: above 16%

Minimum dividend payout of 30% as stipulated in the dividend policy

Regular dividend of USD 84.6 million paid for 2012 and USD 58.4 million for 2013, excess

free cash flow distributed to shareholders in the form of special dividends

● Additional USD 79 mln special dividend in 2012

Ability to invest in growth when competitors are constrained due to over-leverage

Quick execution of lucrative transactions (e.g. purchase of remaining 25% of VSC)

IPO provided ability to consummate sizable transactions including equity component (e.g.

NCC acquisition)

(1) Adjusted for NCC acquisition 2013 leverage was equal to 0.9x. Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 39-40

Maintaining low leverage(1)

271 204 140 66 230

1,419

NCC acquisition

13

2008-2013 STRATEGY SUCCESSFULLY EXECUTED

14

Clear strategy and reliable execution =

market leadership

Utilize the window of opportunity of lack of fuel oil export facilities

Leverage unique features of Vopak E.O.S.


Expansion and upgrade of container assets

Entrepreneurial use of space in major facilities (Ro-Ro, cars, coal,

scrap metal)

Go beyond ship-to-shore (block train service in VSC, inland facilities)

Focus on customer segmentation and services

Optimize operations to improve the profitability of the business

Maintaining low leverage and access to equity and debt financing

enabled GPI to invest when competitors were constrained

Value accretive M&A

Growth in container

volumes and market

share

Free cash flow

generation and dividend

distribution from VEOS

Consistently high

EBITDA margin

High ROCE

EVOLUTION OF EXTERNAL ENVIRONMENT

15

2000-2008 CAGR 2011 2012 2013 5m14

CURRENT ECONOMIC CYCLE, REDUCED DWELL TIME IMPACTING INDUSTRY

16

Russian GDP growth

Throughput of container

terminals in Russia


28.9%

5.3%

1.9%4.3%

3.4%

1.3% 0.5%

2.7x4.1x

3.9x

Russian container market / GDP growth multiplier

Container market growth rate is slowing as growth of

Russia’s economy decelerates

● Ongoing containerization: the container market grows

at a multiple of around 4 times GDP

Capacity utilization of the market remains high (above 70%)

● No known sizeable capacity additions in the Russian

market in 2014 except by Global Ports

Market capacity utilization rate(1), %

Source: ASOP, Rosstat

(1) Capacity utilization rate is defined as container throughput in the corresponding period divided by container handling capacity for the period expressed as a percentage.

(2) CB RF estimate for full year 2014

Average number of storage days decreased across industry

in recent years due to introduction of electronic customs

clearance and overall customs and logistic chains efficiency

improvements

● Negatively impacting storage revenue

Decrease in storage days removes ‘handbrake’ on trade and

promotes further containerization

● Quicker and cheaper container supply chain vs.

alternative transportation modes

(2)9.1%

29.7%

6.6%

4.5x 6.7x

75%

73%

75%

Growth in electronically cleared customs documents Container market grows at a high multiple to GDP

9%

96%

Share of electronically cleared customs documents

Source: Federal Customs Service

2009 2013

5m13 5m14Russia WorldAverage

Turkey NorthAmerica

Europe

RUSSIA REMAINS SUBSTANTIALLY UNDERCONTAINERISED


Containerisation level 2013, TEU per 1000 capita

Throughput of laden export containers increased 26% y-o-y

during 5 months of 2014

Significant potential in further containerisation of Russia’s

export flows

Containerisation level remains low in Russia:

42 TEU per thousand capita(1) in 2013 compared to(1) :

● 90 TEU per thousand capita world average

● 95 TEU per thousand capita in Turkey

● 134 TEU per thousand capita in North America

● 135 TEU per thousand capita in Europe(2)

17

(1) Source: Drewry; some 2013 numbers are estimated

(2) 2013 per capita data for Europe are for all of Europe (not just the European Union) and is not comparable to the numbers mentioned in GPI’s disclosure materials in 2012

(3) Source: ASOP

Growth of laden export in Russia (in thousand TEU) (3)

Source: Drewry Source:ASOP

42

90 95

134 135

+26%

392

310

57%98%

68%99% 86% 93%

Russia Brazil Turkey US EU Global

15%33%

60% 68% 65%47%


53%71%

56%78% 80% 78%


HIGH CONTAINERISATION POTENTIAL ACROSS INDUSTRIES1


18

Temperature or Climate Control (frozen food

and fish, perishable cargo etc.)

Chemicals & Products Foodstuffs & Beverages for human

consumption

Consumables

Plastics & rubbers

Consumer fashion, personal & household

goods

Manufactured metal & semi-manufactured

industrial consumables

Machinery parts. Components, supplies &

manufactures, n.e.s.

(1) Source: Seabury, calculated as total containerised ocean trade in tonnes divided by total trade by country/region in tonnes

(2) Selected cargo groups represent more than 50% of Russian import measured in TEU’s

(3) Selected cargo groups represent around 45% of Russian export (excluding liquids) measured in tonnes

Chemicals & Products

Containerisation of import(2) Containerisation of export(3)

34%

65%

37%

71%51%

65%


45%

86%

37%

83% 84% 75%


4%

31% 31% 29%47%

36%


25%30%

19%

31% 31% 36%


8%25% 26%

66%

34% 35%


8% 12%

67%

13%39% 32%


5m 2013 5m 2014

Ust-Luga and NMT annualhandling capacity

Total Russian fuel oil export,2013

BUSINESS ENVIRONMENT FOR VEOS HAS BECOME MORE CHALLENGING

19

New entrants to the market

Change of global

marketplace

Increased ship

deliveries, trend to

handle more in Russia


Share of ship deliveries in VEOS

New capacity additions

5918

(1) Fuel oil 3.5%S RMG NWE barge - Fuel oil 3.5% barge swap ARA month 3.

mill

ion tones (

mt)

-15

-5

5

15

09/13 11/13 01/14 03/14 05/14

Backwardation reduces demand for storage

Fuel oil spot price - 3m forward price(1)

US

D / t

on

Backwardation

Contango

Source: Argus European Products

30%1%

Less profitable ship deliveries to bordering countries have

increased

Trend of cargo owners is to handle more product within

Russia

Fuel oil market remains in backwardation (futures

price being less than spot price) reducing the storage

demand created by traders

New fuel oil terminal capacity built since 2008

represents 1/3 of fuel oil export from Russia

● Ust-Luga terminal commissioned in 2011 with

capacity of 14 million tones

● Novorossiysk terminal (NMT) commissioned in

2012 with capacity of 4 million tones

STRATEGY GOING FORWARD

20

STRATEGIC FOCUS

21

Strategy largely unchanged: focus on highest safety standards, maximum value extraction from core assets,

investment discipline and complementary services

Maximize shareholder

value

Focus on containers

● Maximize value extraction from core assets

● Generate new revenue streams

● Optimize portfolio of inland terminals

Optimize CAPEX

● USD 35-45 million annual CAPEX over the next few years excluding potential expansion

● Invest in efficiency to optimize costs

Performance and cost control

● Utilize potential of the enlarged operations for productivity improvement, repair

and maintenance optimization and centralization

● Further increase share of variable costs

● Restructure oil products business

Focus on FCF and deleveraging, maintain dividend

● ROCE driven investments, to be immediately cash generative

● Deleverage to reach target gearing of 2.0x Net Debt / Adjusted EBITDA

● Continue paying dividends as per dividend policy of 30% of imputed consolidated net profit


INCREASE FOCUS ON CORE CONTAINER ASSETS

22

Focus on large container assets – FCT, PLP, VSC

Expand VSC which is gaining market share on a

growing market

Improve operational processes further

Deepen commercial relationships - “value-based selling”

and promote and monetize network benefits

Divest minor non-core assets and operations (e.g.

trucking business)

86% of EBITDA

Container Operations

Historically a good business when there’s a shortage of

maritime container capacity

Now high competition driven by low entry barriers

● Low EBITDA margin of inland container facilities

decreasing attractiveness of inland concept

Group has space for ancillary services in ports post the

NCC acquisition

Optimize inland terminals, seek alternative uses

4% of EBITDA

Inland Terminals


NEW OPPORTUNITIES AND REVENUE BOOSTERS


Develop a value-based selling

strategy to leverage the strength of GPI’s

terminal portfolio

Strengthen customer service:

centralize commercial team

post NCC integration

Define intermodal strategy: replicate the success of the VSC rail strategy in

the North-West

Explore IT solutions to generate new revenue streams

New revenue streams (road and rail charges, new tariff structures)

Continue developing non-

containerized cargoes where capacity allows

Utilize opportunities of

the current asset base

CONTINUE TO REDUCE COSTS AND FOCUS ON OPERATIONAL EFFICIENCY

24

Long-term maintenance program to

● optimise CAPEX and maintenance cost

● maximize return from previous investments and useful life of equipment

Optimize equipment inside network of terminals


Long-term view on

maintenance

Centralization of handling equipment procurement completed, centralization of top 10

OPEX spending is ongoing

● Cost savings of more than 10% of 2014 procurements achieved

Further centralisation of procurement for projects in infrastructure, commodities, and IT

Further centralization where

needed

Carefully benchmark productivity and efficiency of terminals and compare to APM

Terminals’ global network using numerous criteria to realize potential

Ensure business units deliver maximum productivity at lowest cost according to best

international standards

Benchmark against network terminals

Mitigate volatility by creating stronger variable portion of the cost structure

Potential for further variable cost improvement in staff cost and fuel costs

Increase share of variable costs

Continue to build and deliver highest safety and social responsibility

standards in the market HSSE/CSR

OPTIMIZING OPERATIONS: NCD CASE STUDY


FCT layout NCD

Empty containers dropped off by clients

at NCD

FCT delivers box to berth

Loading of empty box to vessel

Empty containers drop-off by clients directly at

FCT or PLP

Loading of empty box to vessel

FCT operations pre-acquisition

New process of operations after optimization

NCD previous activity was eliminated, releasing land plot for

other revenue uses

Potential savings of more than USD 1 million per annum achieved

5m 2013 5m 2014

VOPAK E.O.S. RESTRUCTURING LAUNCHED


10% of EBITDA

Oil Products

Throughput

mill

ion tones (

mt)

4.9

3.5

Business environment of Vopak EOS has become even more

challenging

● Throughput volumes decreased 27% YoY in 5m 2014

● Share of less profitable ship deliveries have increased to 30%

Vopak E.O.S. initiated a restructuring program to address the change

● Staff reduced more than 10% in 2014, multi tasking of staff to

increase flexibility and in-source

● CAPEX and expansion halted

● System of four interconnected terminals enables switching off of

excess terminal capacity

The impact of the recent restructuring is difficult to quantify at this stage

● However the anticipated continuation of a very challenging

business environment is currently expected to lead to a further

material decline in Vopak E.O.S.’ 2014 results

VSC PLP FCT ULCT MD Global Ports 2008 2009 2010 2011 2012 2013 2014 2015

AVAILABLE CAPACITY ALLOWS CAPEX SAVINGS

27

2013 container throughput and capacity

Container throughput

Available capacity

Capacity to be added in 2014

2013 utilization rate(1), %

86%

71% 87%

14%55%

70%

Cash CAPEX(3)

Russian Ports segment

VEOS

Finnish Ports segment

Budget estimate

180

59 52

132

80 7966

35-45

US

D m

illio

n

thousand T

EU

Total available capacity of 1.1 million TEU or 30% of 2013

throughput

100 thousand TEU of additional capacity to be added at VSC

in 2H 2014

400 thousand TEU of additional capacity at PLP already

constructed, to be put into operation in the near future

475

711

1,084

2,551

62219

378 181

166

1,089

289

400

75

100

Available capacity post NCC acquisition and well-

invested terminals allow further decrease of CAPEX

2014 CAPEX likely to be below USD 66 million

announced previously

2015-2016 CAPEX expected to decrease to USD 35-45

million excluding potential expansion

500

Preliminary estimate of

maintenance CAPEX

(1) Capacity utilization rate is defined as container throughput in the corresponding period divided by container handling capacity for the period expressed as a percentage.

(2) Russian Ports Segment

(3) 2013 data includes NCC Group cash CAPEXDefinitions for terms marked in this presentation with capital letters provided in the Appendices at pages 39-40

(2)

2013 Cash anddeposits

2014 2015 2016

FOCUS ON FCF GENERATION AND DELEVERAGING

28

Focus on Free Cash Flow generation Deleveraging schedule(1)

Pro forma net cash flow from operating activity 2013

Cash and deposits(2) as of 31/12/13

Debt repayment(1)

Strong Free Cash Flow generation due to:

● Process optimization driven by cost control

● Further reduction in CAPEX

● Expansion CAPEX only if meets return requirements

and be cash generative quickly after implementation

Comfortable leverage and debt repayment schedule

● Providing for swift deleveraging to Target Gearing

Ratio of 1.5-2.0x Net Debt / EBITDA

No change in dividend policy, minimum 30% of imputed

consolidated net profit to be distributed as dividends

375

133 139

179 191


(1) As of 31/01/14, based on management accounts, excluding interest

(2) Including deposits with the maturity over 90 days

US

D m

illio

n

CHANGE IN JOINT VENTURE ACCOUNTING

29

Revenue Adjusted EBITDA(3) Net Debt

57.0% 3.4x 3.5x

(1) 2013 data provided is on the illustrative combined basis, including NCC Group results in 2013

(2) 2013 financial metrics calculation is preliminary and may be revised within audit of 2014 results

(3) Including share of net profit of joint ventures

(4) Including dividends received from joint ventures, net of tax

The option to proportionately consolidate joint ventures has been eliminated

starting from January 1st 2014 due to adoption of IFRS 11

Group’s joint ventures Vopak E.O.S, Moby Dik, Yanino Logistics Park and

Finnish Ports are now consolidated using the equity method starting from

January 1st 2014

● Proportional share of net profit of joint ventures contributes to the “Share

of profit of joint ventures” reported below EBITDA

● EBITDA of joint ventures is deconsolidated

Group will continue to disclose segmental information as a note to IFRS

statements, to ensure continued comparability

The principal impact on Global Ports’ reported financial information as a result of

adopting these standards are shown below


US

D m

illio

n

Net Income Operating cash flow(4)

737

589

420

100

Adjusted EBITDA margin, % Net Debt / EBITDA

378

64.1%

1,323375

406

Illustrative combined for 2013(1) Illustrative combined for 2013 based on new JV accounting(2)

Vopak E.O.S. Moby Dik

Yanino LP

MLT Helsinki

MLT Kotka

Joint ventures of Global Ports

50% 25%50% 75%

100

1,419

Impact of IFRS 11 implementation

Focused on FCF, deleveraging and

dividend payments

KEY TAKEAWAYS


Clear strategy

Increase focus on key container assets

Utilize the scale advantage for taking costs out (productivity, maintenance, centralization etc.)

Optimize CAPEX further

Russian market is underconteinerized

(1) Source: Drewry; some 2013 numbers are estimated

Fundamentally under-containerized market with good long-term structural growth prospects

Significant containerization gap across a broad range of industries

TEU per capita 2.1x(1) lower than global average, 2.3x(1) lower than Turkey

GPI is the leader in terms of size, experience and

governance

Unparalleled network of 7 marine terminals in Russia and Finland, 2 inland facilities, strong

presence in two key basins for Russian trade: Baltic basin and Far East

Track record and experience of successfully navigating economic cycles

Strong governance culture with APM Terminals and N Trans as co-controlling shareholders

Focus on FCF generation

Deleverage to target gearing of 2.0x Net Debt / EBITDA

Continue paying dividend per dividend policy of minimum 30% of imputed net profit

APPENDICES

31

SELECTED COMBINEDOPERATIONAL INFORMATION FOR 5 MONTHS1

32

(1) All information derived from management accounts;

(2) Total throughput of Russian Ports excludes the throughput of Yanino which, in 5m 2013 and 5m2014 was 25 thousand TEUs and 34 thousand TEUs respectively and the throughput of LT which, in 5m 2013 and 5m 2014

was 43 thousand TEUs and 41 thousand TEUs respectively.


5M 2013 5M 2014 5M 2013 5M 2014

Gross throughput Gross throughput

Russian Ports segment Finnish Ports segment

Global Ports containerised cargo

(thousand TEUs)

PLP 310 282 Containerised cargo (thousand TEUs) 88 101

VSC 186 202

FCT 444 408

Moby Dik 93 96 Oil Products Terminal segment

ULCT 14 42

Total Russian Ports segment2 1,047 1,031Oil products Gross Throughput (million tonnes)

4.9 3.5

Non-containerised cargo

Ro-ro (thousand units) 8 11

Cars (thousand units) 45 52

Bulk cargo (thousand tonnes) 450 354

To Kick off GMR Implementation, Safety reviews were

done on all Sites, based on the Global Ports GMR

Manual which includes GMR description, Accident

lessons learnt and APM Terminals Practices:

Global Ports Safety Improvement Plan for 2014

33


3 pillars of the safety Improvement plan for 2014

Initial Safety Reviews in Q2 lead to terminal action plans

Minimum Safety Requirement Implementation

Prioritized based on the 4 high risk areas for

terminals:

● Traffic

● Falling objects

● Working at heights

● Compressed energy

GMRs covering main general HSSE requirements

added

Incident Investigation

Kelvin Topset methodology to be rolled out as the

standard for Incident investigation, ensuring Root

Cause analysis and lessons learnt

Incident Classification

Standard for incident classifications will be

implemented according to international standard to

ensure continued focus on High risk areas

Focus on implementation of Minimum Safety Requirements, Incident investigation training and Incident classification

Best practice governance standards established since 2008

● Quick and unbureaurcatic decision making processes

enabling Group to capitalise on market opportunities

Strong and professional Board of Directors including

experienced INED’s

● Strong Board committees chaired by INEDs

Entrepreneurial and experienced management team

● Proper split of responsibilities between head office and

terminal management

STRONG AND EFFECTIVE GOVERNANCE

34

Global Ports governance structure

Capt. Bryan Smith Senior

INED

(since 2008)

Chairman of Nominations

and Remuneration

committees

Siobhan Walker

INED

(since 2011)

Chairman of Audit and

Risk committee

General meeting of shareholders Remuneration Committee

Nomination Committee

Audit and Risk Committee

Internal Auditor

KEY EXECUTIVE MANAGEMENTTERMINALS

VICTORIA SCHERBAKOVA-SLUSARENKO,

General Manager of Yanino

EDUARD CHOVUSHYAN,

Managing Director of PLP

VALERY MESTULOV,

Managing Director of VSC

ALEXANDER DUDKO,

General Manager of Moby Dik

DIRK VAN ASSENDELFT,

General Manager of Multi-Link Terminals

VITALY MISHIN,

General Manager of Logistika Terminal

ALEXANDER TIKHOV,

Managing Director of FCT

ARNOUT DIRK LUGTMEIJER,

General Manager of VEOS

ANDREY BOGDANOV,

General Manager of ULCT

ALIONA ASHURKOVA,

Deputy Chief Executive Officer

MIKHAIL LOGANOV,

Chief Financial Officer

EVGENY ZALTSMAN,

Head of Business Development

ROY CUMMINS,

Chief Commercial Officer

ANDERS KJELDSEN,

Chief Operating Officer

Board of Directors

ALEXANDER NAZARCHUK,

Chief Executive Officer

Appointment of the

members of terminals’

Board of Directors and

General Managers

Coordination of respective activities and policies


GLOBAL PORTS CORPORATE STRUCTURE

35

Entity Partner Share Partner Profile

Vopak E.O.S. Royal Vopak 50%

• Global market leader in independent bulk liquid storage terminals

• 77 terminals with a combined storage capacity of nearly 30.5 million cubic

meters in 29 countries1

Moby Dik, Finnish

Ports, Yanino

Container Finance

Ltd Oy

25% in

each

• Finnish investment company with extensive experience in transportation

• Shareholder of door-to-door European container transport company

Containerships

ULCT Eurogate 20%

• One of the largest and the most reputable European container-terminal groups,

operating ten sea terminals on the North Sea, in the Mediterranean region as

well as on the Atlantic

• Handled over 14.2 million TEUs in 2013

Enlarged Russian Ports segment(2)

Global Ports

VSC PLP Moby Dik

75%100%100%

Yanino

75%

Finnish

Ports

75%

Vopak E.O.S.

50%

9%

Polozio

Enterprises LimitedTIHL

30.75%

APM Terminals

9%30.75%

FCT ULCT LT

100%100% 80%

Ilibrinio

Establishment Limited

20.5%

Free Float

Source: Companies’ data.

(1) As of 16 March 2014.

(2) In enlarged Russian Ports segment post transaction: including Russian Ports segment of Global Ports and NCC.


WELL INVESTED TERMINALS IN KEY GATEWAYS

Source: Drewry, open sources, Company analysis, as of 31.12.2013.Note: Gross container handling capacity with respect to container terminals of the Group as of 31 December 2013.

Black Sea Basin15% of Russian market 2013 throughput

Russia

• Capacity: 440 ths. TEU

NCSP

Novorossiysk

Black

Sea

Turkey

Ukraine


NUTEP (Delo)

Baltic Sea Basin 56% of Russian market 2013 throughput

Russia

Finland

Finnish transit

Baltic countries’ transit


Moby Dik

• Capacity: 1,000 ths. TEU

PLP

St. Petersburg

Region

Estonia

Latvia

Kaliningrad

Region

Baltic

Sea

Lithuania


Ust-Luga


BSC (NCSP)

and Kaliningrad SCP

• Capacity: 1,250 ths. TEU

FCT


CT St-Petersburg (UCL

Holding)

Far East Basin27% of Russian market 2013 throughput


VSC


VMTP (FESCO)

Vladivostok

Okhotsk

Sea

Moscow

Ilychevsk



VSFP


Russia

China

36

PLP: TERMINAL LAYOUT(1)

37

Metal Scrap Area

#48 #47 #46

Dedicated

Container Berths

Bert

hs

#42-4

3

Berths #49-50

Car Ro-Ro

Terminal

Traditional

Ro-Ro

Berths #64 #63 #62 #61 #60

Tunnel

Western Speed Diameter

Reefers

Loaded containers

Empty containers

400 thousand TEU

of new capacity

Key characteristics

Total Area: 129 ha

Number of berths: 13

Quay length: 2,201 m

Maximum ship draft: 11 m

Railway track length: 7,616 m

Container throughput in 2013: 711,000 TEU

Capacity

Containers: 1,000,000 TEU

Other bulk cargo: 900,000 tonnes

Cars: 190,000 units

Ro-Ro terminal capacity: 30,000 units

Reefer sockets: 3,630

(1) As of 31.12.2013


Key characteristics

The largest container terminal in Russia and the CIS by

throughput(1) and capacity(2)

Container throughput in 2013: 1,084,000 TEU

Container capacity

● Current – 1,250,000 TEU

● Potential – 1,500,000 TEU

Terminal area: 89 ha

4 operational berths of 780 m length, depth

alongside – 11.5 meters

3.3 km of railway tracks

2,905 reefer plugs

FCT: TERMINAL LAYOUT(1)

38

(1) Based on 2013 data , according

to Association of Sea

Commercial Ports (ASOP);

(2) Based on 2013 data , according

to Company’s estimates;


DEFINITIONS

39

Adjusted EBITDA (a non-IFRS financial measure) for Global Ports Group 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; for NCC Group is defined as profit for the period before income tax expense, foreign exchange gains/(loss), net, finance costs, finance

income and depreciation and amortisation expenses adjusted further certain non-cash or one-off nonrecurring gains and losses included within “other

income/(expenses), net” in Note 8 of the NCC Group Financial Information for the year ended 31 December 2013.

Adjusted EBITDA Margin (a non-IFRS financial measure) is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage.

Average Storage Capacity is a storage capacity available at Vopak E.O.S. oil products terminals, averaged for the beginning and end of the year.

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 Russia 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.

FCT includes First Container Terminal ZAO, that owns and manages a container terminal in St. Petersburg port, North-West Russia. The Global Ports Group owns a

100% effective ownership interest in FCT.

Finnish Ports segment consists of two terminals in Finland, MLT Kotka and MLT Helsinki (in port of Vuosaari), in each of which Container Finance currently has a 25%

effective ownership interest.

Fuel Oil Export Market is defined as the export of fuel oil from ports located in the Former Soviet Union countries.

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. Gross Container Throughput of NCC Group represents total

container throughput of the NCC Group’s terminals shown on a 100% basis, it excludes the container throughput of the NCC Group’s inland container terminal, Logistika

Terminal.

Gross Throughput is throughput shown on a 100% basis for each terminal, including terminals held through joint ventures and proportionally consolidated.

Logistika Terminal (LT) includes NCC Logistika OOO that owns and manages a container terminal, located to the side of the St. Petersburg - Moscow road,

approximately 17 kilometres from FCT and operates in the Shushary industrial cluster. The Global Ports Group owns a 100% effective ownership interest in FCT.

LTM Adjusted EBITDA (a non-IFRS financial measure) represents Adjusted EBITDA for the last twelve months.

NCC means NCC Group Limited and its subsidiaries

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 Vopak E.O.S. (in which Royal Vopak currently has a 50% effective ownership

interest).

DEFINITIONS

40

PLP includes Petrolesport OAO, OOO Farwater 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.

Revenue per CBM of Storage is defined as the total revenue of Oil Products Terminal segment (Vopak E.O.S.) for a respective period divided by Average Storage

Capacity during that period.

Revenue per Tonne of Throughput is defined as the total revenue of Oil Products Terminal segment for a respective period divided by Oil Products Terminal

segment’s Gross Throughput in tonnes.

ROCE (Return on capital employed, a non-IFRS financial measure) is defined as operating profit adjusted for impairment 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, 100% interest in VSC, and 75% interest in Moby Dik and Yanino (in each of which Container

Finance currently has a 25% effective ownership interest).

Russian Ports segment of the Enlarged Global Ports Group consists of the Group’s 100% interest in PLP, FCT and VSC and Logistika Terminal, 80% interest in

ULCT (in which Eurogate currently has a 20% effective ownership interest), 75% interest in Moby Dik and Yanino (in each of which Container Finance currently has a

25% effective ownership interest).

Operating Cash Costs of Russian Ports is defined as cost of sales and administrative, selling and marketing expenses of Russian Ports segment for the period less

(a) depreciation of property, plant and equipment, (b) amortisation of intangible assets, (c) impairment of property, plant and equipment and (d) impairment of goodwill.

Operating Cash Costs of Oil Products Terminal is defined as cost of sales and administrative, selling and marketing expenses for the period less (a) depreciation of

property, plant and equipment, (b) amortisation of intangible assets, (c) impairment of property, plant and equipment and (d) impairment of goodwill.

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.

Total Operational Cash Costs is defined as cost of sales and administrative, selling and marketing expenses for the period less (a) depreciation of property, plant and

equipment, (b) amortisation of intangible assets, (c) impairment of property, plant and equipment and (d) impairment of goodwill.

Transaction is the acquisition of 100% of the share capital of NCC Group Limited, announced on 2 September 2013 and completed on 27 December 2013

ULCT includes Ust‐Luga Container Terminal OAO that owns and manages a container terminal in the large multi-purpose Ust-Luga port cluster on the Baltic Sea,

Russia. The Global Ports Group owns a 80% effective ownership interest in ULCT, Eurogate currently has a 20% effective ownership interest.

Vopak E.O.S. 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 Vopak E.O.S.. The remaining 50% ownership interest is held by Royal Vopak.

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 100% effective ownership interest in VSC.

INVESTORRELATIONS

41

Mikhail Grigoriev

Tatyana Stepanova

Phone: +357 25 313 475E-mail: [email protected]: www.globalports.com

Investor Relations

Global ports strategy_update_presentation_2014