global ports fy14_results_presentation

Global Ports Investments PLC

2014 Full-Year Results Presentation

16 March 2015

R140

G196

B236

R232

G39

B62

R84

G80

B83

R0

G86

B145

R151

G177

B165

R76

G158

B208

R70

G90

B80

R157

G207

B232

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.

Concurrently Global Ports is publishing Unaudited Selected Illustrative Combined Financial Metrics for the year ended 31 December 2013 (the “Illustrative Combined Financial

Metrics” or “Illustrative Combined”) of Global Ports Group, including NCC Group Limited and its consolidated subsidiaries (“NCC Group” or “NCC”), the “Enlarged Group”)

following the Group’s announcement on 27 December 2013 that it had completed the acquisition of 100% of the share capital of NCC Group (the “Transaction”). For the

purposes of this announcement, Global Ports is using the Illustrative Combined Financial Metrics as a comparator against the actual results of operations for the twelve-month

period ended 31 December 2014 in respect of (i) the Group’s results and (ii) the Russian Ports segment’s results. Where relevant, for reader’s reference, actual (reported)

results of operations for the year ended 31 December 2013 are presented in separate columns in the tables presenting financial information. The comparative figures for 2013 in

the audited IFRS financial statements do not include cashflows and financial results of NCC Group for the year ended 31 December 2013, but include financial position of NCC

Group as of that date

The Illustrative Combined Financial Metrics represent information prepared based on estimates and assumptions deemed appropriate by the Group and are provided for

illustrative purposes only. They do not purport to represent what the actual results of the operations or cash flows of the Group would have been had the Transaction occurred

on 1 January 2013, nor are they necessarily indicative of the results or cash flows of the Group for any future periods. Because of their nature, the Illustrative Combined

Financial Metrics are based on a hypothetical situation and, therefore, do not represent the actual financial position or results of the operations and cash flows of the Group.

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 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 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.

2 Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 27-28

REFERENCE TO ACCOUNTS AND OPERATIONAL INFORMATION

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

December 2014 which are prepared in accordance with International Financial Reporting Standards adopted by the European Union (“IFRS”) and the requirements of

Cyprus Companies Law, Cap. 113.

From 1 January 2014 the Group adopted IFRS 11, ‘Joint arrangements’ which has resulted in significant changes in the accounting policies applied by the Group. Prior

to 1 January 2014, the Group’s interests in jointly controlled entities (VEOS and MLT and CD groups) were accounted for by using the proportionate method of

consolidation. From 1 January 2014 jointly controlled entities are accounted for using the equity method of consolidation.

The Global Ports Group’s Consolidated Financial Statements for the twelve months period ended 31 December 2014 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.

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

marked in this presentation with an asterisk {*}.

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”).


CONTENTS

4 Definitions for terms marked in this presentation with capital letters are provided in the Appendices on pages 27-28

Page

I. Global Ports at a Glance 5

II. 2014: Focus on efficiency, cash flow and pricing 6

III. Russian container market 7

IV. High potential for further containerisation across key industries 8

V. Operational and commercial developments 9

VI. Financial highlights: 2014 10

Focus on operational efficiency 11

Other segments 12

Strong cash flow, focus on deleveraging 13

VII. Key takeaways 14

VIII. Appendices

Enlarged Global Ports 16

Selected operational and financial information 21

The #1 container terminal operator in Russia(1), market leadership reinforced by acquisition of Global Port’s largest

competitor, NCC Group Limited at the end of 2013

● Approximately every second container in Russia is handled by Global Ports

Strong presence in both key container gateways to Russia: Baltic and the Far Eastern basins

Efficient, well invested terminals provide for low CAPEX requirements and high cash flow generation

Listed on the main market of the London Stock Exchange, free float of 20.5%(2)

● APM Terminals and N-Trans (each with 30.75% of share capital) are the core strategic shareholders

● Adherence to best-in-class corporate governance, Board of Directors with strong track record and deep understanding

of the industry

GLOBAL PORTS AT A GLANCE

5

(1) Source: ASOP, based on 2014 overall Container Throughput in the Russian Federation ports

(2) Of total share capital.

Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 27-28

BALTIC BASIN

BLACK SEA BASIN

FAR EASTERN BASIN

Vostochnaya

Stevedoring Company

MLT-Helsinki

MLT-Kotka

Vopak E.O.S. Ust-Luga

Container

Terminal

Moby Dik

First Container Terminal Petrolesport

Logistika-Terminal

Yanino

2014: FOCUS ON EFFICIENCY, CASH FLOW AND PRICING

6

Focus on efficiency

improvement and free

cash flow

maximisation

Revenue per TEU up 3.5%* year on year to USD 212*

Successful commercial campaign for 2015 completed

Unparalleled terminal

network provides added

value

(1) Before dividends from joint ventures

(2) Including derivative instruments

Debt reduced, priority

on further deleverage

Margin expansion,

increase in Adjusted

EBITDA

Adjusted EBITDA margin expanded c. 556 bps* to a record level of 66.8%* due to efficiency

gains, strong pricing and FX

Adjusted EBITDA increased 4% to USD 375.9 million*

● Cost reductions mitigated the 4.5%* revenue decline

Net Debt(2) reduced by USD 141 million, Net Debt / Adjusted EBITDA decreased from 3.7 to 3.2

times(2)

Following a recent sharp decline of container volumes and low visibility, the BoD has decided to

prioritize deleveraging and not distribute further dividends in the medium term

• FY 2014 dividend total remains USD 0.12 per GDR

• Dividends to resume upon recovery and reduced volatility of the market subject to sustaining

conservative leverage


Total Operating Cash Costs reduced 18%* compared to 2013 driven by efficiency improvements

and positive FX impact

• Further efficiency improvement initiatives are being implemented

CAPEX reduced from USD c.70 million in 2013 to USD 24 million in 2014

1q14 2q14 3q14 4q4 Jan-Feb15

2013 20142013 2014

Russian container market declined by 1% in 2014(1) with

negative y-o-y growth rates since August 2014

Impact of the food ban was muted

● Only few percent(2) of overall Russian container volumes were

affected

● Banned cargo was gradually substituted by container flows

from distant locations

Laden export grew 20%* y-o-y during 2014(1), positively

impacted by the depreciation of the Russian rouble and

ongoing containerisation of exports

Sharp decline in Rouble exchange rate and hike in interest

rates toward the end of 2014 have strongly impacted

consumption and imports

● This drove a 23%(3) decline in container volumes in January-

February 2015

Containerisation of Russian trade continues

● High potential across many key industries

RUSSIAN CONTAINER MARKET

7

Container Throughput in Russia

mill

ion T

EU

Source: ASOP

(1) Source: ASOP, based on FY 2014 overall container throughput in the Russian Federation ports without transit cargo volumes

(2) Company estimates based on Customs data

(3) Source: ASOP, YTD data of January - February 2015.


+20%*

-1%*

Container Throughput

5.18* 5.11*

0.92* 0.76*

+3%* +1%*

-2%* -6%*

2014 laden export

containers

-23%*

Dynamics of Container Throughput in Russia, y-o-y

Source: ASOP

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 POTENTIAL FOR FURTHER CONTAINERISATION ACROSS KEY INDUSTRIES1

Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 27-28 8

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 2013 data, 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 imports(2) Containerisation of exports(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%


2013 2014

OPERATIONAL AND COMMERCIAL DEVELOPMENTS

9

Revenue per TEU* (Russian Ports Segment)(1)

mill

ion T

EU

Gross container throughput*(2)

2.55* 2.40*


(1) Data for FY 2013 is based on an Illustrative Combined basis, including the results of NCC Group.

(2) Gross container throughput and Total marine container throughput include throughput of Global Ports standalone and NCC Group. Global Ports standalone gross container throughput includes 100% throughput in PLP, VSC, Moby Dik,

and Finnish ports, NCC Group throughput includes 100% throughput of FCT and ULCT.

(3) Source: PwC report, Feb2015? www.pwc.ru

US

D

Unparalleled terminal network provides for added value

● Growth in revenue per TEU in 2014 vs FY 2013

due to firm pricing

● Successful pricing campaign for 2015

Gross container throughput decreased 4%*

● Mainly driven by loss of volumes to low cost competition due

to “pricing over market share ” strategy of Global Ports

5%* volume growth in car handling despite a 40% decline in

imported new car sales volumes in Russia(3) as

● Key client gains market share

● New car brands attracted

0.25* 0.22*

2.77* 2.67*

Russian ports Finnish ports Total marine

container throughput

2013

2014

-4% -6%

+12% 205*

212*

+3.5%

2013 2014

2013 2014

2013 2014

2013 2014

2013 2014

2013 2014

FINANCIAL HIGHLIGHTS: 2014(1)

10

Strong pricing

mitigated volume

impact on revenues

Margin expansion driven by

positive FX impact and cost control

Reduced CAPEX to maximise

FCF

562 589 mln

US

D

Revenue

-4.5%

mln

US

D 4.1%

Adjusted EBITDA and Adjusted EBITDA margin

-66%

CAPEX


mln

US

D

376* 361*

70 24

66.8%* 61.3%*

Russian Ports segment: 3.5%* growth in revenue per

TEU partially offset the 6%* decrease in container

volumes

Group revenues decreased 4.5%* to USD 562 million

Positive FX impact and cost control measures in

Russian Ports segment led to a 18% reduction in

Group’s Total Operating Cash Costs

Adjusted EBITDA margin up 556 bps* to record 66.8%*

Adjusted EBITDA increased 4% to USD 375.9 million*

as cost reductions mitigated the impact of the revenue

decline

Cash CAPEX in 2014 was substantially reduced from

initial plan of USD 66 million to USD 24 million

● Well invested terminals allow to focus on

maintenance CAPEX in current market environment

CAPEX guidance lowered to USD 27 million for 2015

and USD 25-35 million for few years thereafter

626 602

65.6%* 70.1%*

2.9%

410* 422*

-65%

72 25

Global Ports Russian Ports segment,

100% basis

-3,8%

Due to mandatory adoption of IFRS 11 from January 1st 2014, the Group’s joint ventures (VEOS, MD, YLP, Kotka, Helsinki) are consolidated

using the equity method of accounting and their proportional share of net profit is reported below EBITDA

(1) The results for 2013 are provided on Illustrative Combined basis and include the results of NCC Group.

2013 2014

FOCUS ON OPERATIONAL EFFICIENCY(1)


Further measures to take effect in

2015

Headcount: 5% reduction in operating staff of Russian

Ports segment during 2014 (expected to be reflected in

2015 results)

Process optimisation: decrease the number of

unproductive moves

Centralisation of top procurement items

11

(1) The results for 2013 are based on Illustrative Combined basis including the results of NCC Group.

Operating improvements at the enlarged

operation launched

Comprehensive analysis of efficient use of available

capacity launched immediately after the NCC acquisition

● Review of distribution of container volumes in North

West and related headcount optimisation

● Adjustments to operating processes and practices

● Equipment utilization and technical asset management

Operating Cash Costs of the Russian Ports segment

decreased by 17%* during 2014 y-o-y (broadly flat in

Rouble terms). Inflationary pressures largely mitigated by:

● Optimised equipment use resulting in reduction of

equipment running costs and M&R costs

● Decrease in transportation expenses via

optimisation of intra-terminal movements

● Thorough control over other expenses

Operating Cash Costs of Russian Ports segment

mln

US

D

-17%

179.8*

215.8*

Breakdown of Operating Cash Costs of Russian

Ports segment (FY 2014)

46.8%

7.0%8.1%

8.3%

29.8%

Staff costs

Transportationexpenses

Fuel, electricity andgas

Repair andmaintenance of PPE

Other

OTHER SEGMENTS

12

Vopak E.O.S.: changing business model

Finnish Ports segment - growth in volumes and

Adjusted EBITDA

Throughput, mln tons

9.7*

6.9*

-29%

202

117

-42%

87*

47*

-46%

2013

2014

224*

3.4

23.6 251* 24.1

3.9*

12%

2%

15%

Throughput, thousand TEU Revenue, USDm Adjusted EBITDA, USDm


Revenue, USDm Adjusted EBITDA

(USDm) and Adjusted

EBITDA margin (%)

Implemented a new business model focusing more on

storage and accumulation of large shipment, utilising the

unique features of the tank farm consisting of 78 tanks of

different sizes

A 29% decrease in throughput along with an increased share

of lower-revenue generating seaborne deliveries negatively

affected VEOS’s revenues

Restructuring of VEOS’s operations achieved a 39%*

reduction in the segment’s cash costs mitigating the negative

impact to Adjusted EBITDA

Market environment remains challenging

2013

2014

Due to mandatory adoption of IFRS 11 from January 1st 2014, Vopak E.O.S. and Finnish Ports segment are consolidated

using the equity method of accounting and their proportional share of net profit is reported below EBITDA

43%* 40%*

Finnish Ports segment throughput increased 12%* supported by

volumes from new clients acquired in 2013

Revenues increased 2% resulting in 15%* growth in Adjusted

EBITDA

Competitive landscape changed in Finland, another player re-

appeared in the 2h14

as of 31.12.13 as of 31.12.14as of 31.12.13 as of 31.12.14

STRONG CASH FLOW, FOCUS ON DELEVERAGE

13

Net debt to Adjusted EBITDA, interest rate Balanced debt repayment schedule

Net cash flow from operating activities 2014

Cash and deposits(2) as at 31.12.14

Debt repayment schedule as at 31.12.14

335

79 53* 57*

175*


(1)Including cross-currency interest rate swap arrangement

(2)Including deposits with the maturity over 90 days

Healthy net cash flow from operating activities of USD 335

million in 2014

Balanced debt repayment schedule

Following a recent sharp decline of container volumes and

low visibility regarding the market outlook, the Board has

decided to prioritize deleveraging and not distribute further

dividends in the medium term

Net debt reduced by USD 141 million during 2014 resulting in

net debt of USD 1,208 million*(1) as of 31 December 2014

● Net debt to Adjusted EBITDA decreased from 3.7 to 3.2

times(1)*

● Average interest rate of the debt portfolio decreased from

6.2% to 6% during 2014

Almost 100% of debt portfolio priced in US dollars(1) as of

31.12.14 matching revenues mainly denominated in US

dollars

Net CF from

operating

activities

Cash and

deposits 1H 2015 2H 2015 2016 2017

197*

mln

US

D

1,349

1,208

3.2x

3.7x

Net debt, USD million

AVG interest rate(1), %

6.2% 6.0%

2009 2015

KEY TAKEAWAYS: GPI HAS BUILT A STRONG PLATFORM…


One of several

market players

in Russia

Initiated re-development of

PLP from timber port to

modern container terminal

Clear market leader with

unparalleled network of seven

maritime container terminals

1.84* 4.16* 2.3x*

Marine container throughput

capacity(1)

Modern well - invested

terminals with highest level of

service

Private company

LSE listed company,

co-controlled by APM Terminals

and N-Trans

Stronger market position

Better value proposition for

clients

Operating to best

international standards

2009 2015

Client mix dominated by

regional feeder lines

Around 80% of clients are blue

chip main line operators

Share of main line operators in throughput

More resilient client base

2009 2015

34% 80%

(1) In Russia

14

… ABLE TO RESPOND TO CHALLENGES OF 2015.


Clear strategy…

… and action plan in place…

Focus on containers

Emphasis on efficiency and cost control

Optimise CAPEX; supported by well-invested facilities

Focus on FCF generation

Maintain strong pricing in containers supported by an unparalleled terminal network

Further process optimisation and cost cutting

Reduce CAPEX to c USD 25-35 million p.a. over the coming years

… prioritizing deleverage.

Net Debt reduced by USD 141 million during 2014, Net Debt / EBITDA reduced

by 0.5 to 3.2 times

Prioritise deleveraging over dividends in the mid term

16

APPENDIX #1

Enlarged Global Ports

WELL INVESTED CONTAINER TERMINALS IN KEY GATEWAYS

Source: Drewry, open sources, Company analysis Note: Gross container handling capacity with respect to container terminals of the Group as at 31 December 2014

Black Sea Basin 15% of Russian market 2014 throughput

Russia

• Capacity: 440 ths. TEU

NCSP

Novorossiysk

Black

Sea

Turkey


NUTEP (Delo)

Baltic Sea Basin 55% of Russian market 2014 throughput

Far East Basin 28% of Russian market 2014 throughput


VSC


VMTP (FESCO)

Vladivostok

Okhotsk

Sea


VSFP

Russia

China Russia

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)

Moscow

Finland

Other terminals



GLOBAL PORTS CORPORATE STRUCTURE1

18

Entity Partner Share Partner Profile

Vopak E.O.S. Royal Vopak 50%

• Global market leader in independent bulk liquid storage terminals

• 80 terminals with a combined storage capacity of more than 31 million cubic

meters in 28 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 14.8 million TEUs in 2014

Global Ports

VSC PLP Moby Dik

75% 100% 100%

Yanino

75%

Finnish

Ports

75%

Vopak E.O.S.

50%

9%

Polozio

Enterprises Limited TIHL

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 March 2015.


Best practice governance standards established since 2008

● Quick and un-bureaucratic decision making processes

Strong and professional Board of Directors including

experienced INED’s

● Board committees chaired by INEDs

Entrepreneurial and experienced management team

● Proper split of responsibilities between head office and

terminal management

STRONG AND EFFECTIVE GOVERNANCE

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 MANAGEMENT TERMINALS

VICTORIA SCHERBAKOVA-SLUSARENKO,

General Manager of Yanino

EDUARD CHOVUSHYAN,

Managing Director of PLP

ALEXANDER DUDKO, ,

Managing Director of VSC

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

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


OVERVIEW OF JV ACCOUNTING IMPLEMENTATION


100% basis consolidation in IFRS

● Adjusted EBITDA of USD 375.9 million*(1)

Consolidated using equity method of accounting

Proportional share of Net Profit reported below EBITDA:

● Proportional share of net loss of USD 7.7 million

Previous amount of financial information on segments (100% basis)

available in IFRS statement’s segment note 5

Segment on a 100% basis

● EBITDA: USD 422 million*

Segment on a 100%

basis

● EBITDA: USD 47 m*

Segment on a 100%

basis

● EBITDA: USD 3.9 m*

VSC PLP FCT ULCT Moby

Dik LT Yanino

Vopak

E.O.S.

Global Ports

Russian Ports segment Oil Products segment Finnish Ports segment

Finnish

Ports

Source: Company’ data.

(1) Including results of Holdings.

Holdings

21

APPENDIX #2 Selected operational and financial information

SELECTED OPERATIONAL INFORMATION1

22

Source: Management accounts


(1) Data is on a 100% basis. 2013 numbers include NCC Group FY13 data

(2) Total throughput of Russian Ports excludes the throughput of Yanino which, in 2013 and 2014 was 63 thousand TEUs and 89 thousand TEUs respectively and the throughput of LT which, in 2013 and 2014 was 95 thousand TEUs and

89 thousand TEUs respectively;

(2)

2013 2014 2013 2014

Gross throughput Gross throughput

Russian Ports segment Finnish Ports segment

Globalports containerised cargo (thousand TEUs)

PLP 711 658 Containerised cargo (thousand TEUs) 224 251

VSC 475 475

Moby Dik 219 228

FCT 1,084 941 Oil Products Terminal segment

ULCT 62 104

Total Russian Ports segment 2,551 2,404Oil products Gross Throughput (million

tonnes)9.7 6.9

Non-containerised cargo

Ro-ro (thousand units) 24 23

Cars (thousand units) 108 114

Bulk cargo (thousand tonnes) 895 751

SELECTED OPERATIONAL INFORMATION (continued)

23

Source: The management accounts


2014 2014

Capacity (end of the period)

Russian Ports segment Finnish Ports segment

Russian Container Terminal Capacity (excluding Yanino and LT inland)

Annual container handling capacity (Thousand TEUs)

PLP 1,000

VSC 650 MLT Kotka 150

Moby Dik 400 MLT Helsinki 270

FCT 1,250 Total 420

ULCT 440

Total Global Ports 3,740

Yanino, inland container terminal

Annual container handling capacity (Thousand TEUs) 200

Annual general cargo capacity (Thousand tonnes) 400Oil Products Terminal

Segment

LT, inland container terminal Storage Capacity (in thousand cbm) 1,026

Annual container handling capacity (Thousand TEUs) 200

GLOBAL PORTS INCOME STATEMENT


Source: Global Ports consolidated financial statements; all data is based on equity method of accounting of joint ventures

USD million 2014 Reported

2013

Illustrative

Combined

2013 Reported

Revenue 562.4 589.1* 332.2

Cost of sales (231.5) (285.3)* (137.0)

Gross profit 330.9 303.8* 195.3

Selling, general and administrative expenses (55.2) (62.3)* (45.6)

Share of profit of joint ventures (7.7) 16.9* 16.9

Other gains/(losses) - net 10.5 7.6* 2.8

Operating profit 278.6 266.0* 169.4

Finance income/(costs) - net (507.7) (19.9)

Profit before income tax (229.1) 149.5

Income tax expense 31.8 (35.4)

Profit for the period (197.3) 114.1

Profit attributable to:

Owners of the Company (193.1) 114.1

Non-controlling interests (4.2) (0.0)

Adjusted EBITDA* 375.9* 361.0* 197.8*

Adjusted EBITDA Margin* 66.8%* 61.3%* 59.6%*

Summary Income Statement

GLOBAL PORTS CONSOLIDATED BALANCE SHEET

25

Source: Global Ports consolidated financial statements; all data is based on equity method of accounting of joint ventures. The comparative figures for 2013 in the audited IFRS financial statements does not

include cashflows and financial results of NCC Group for the year r ended 31 December 2013, but include financial position of NCC Group as of that date

(1) Including bank deposits with maturity over 90 days


USD million 31-Dec-13* 31-Dec-14*

PP&E (incl. prepayments) 1,337.3 736.7

Intangible assets 1,441.1 822.2

Other non-current assets 246.4 221.1

Cash and equivalents1 114.2 78.8

Other current assets 137.7 54.7

Total assets 3,276.8 1,913.6

Equity attributable to the owners of the Company 1,208.0 366.3

Minority interest (15.4) 25.4

LT borrowings 1,230.9 1,073.7

Derivative financial instruments 26.1 102.8

Other non-current liabilities 422.3 199.8

ST borrowings 206.4 110.0

Other current liabilities 198.5 35.6

Total equity and liabilities 3,276.8 1,913.6

Summary Balance Sheet

GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT


Source: Global Ports consolidated financial statements; all data is based on equity method of accounting of joint ventures

000 000 USD 2013

Reported

2013

Illustrative

Combined

2014 Reported

Cash generated from operations 218.8 393.7* 388.4

Dividends received from joint ventures 70.3 70.3* 9.5

Tax paid (37.5) (57.4)* (62.7)

Net cash from operating activities 251.6 406.6* 335.2

Cash flow from investing activities

Acquisition of subsidiary under common control net of cash acquired (177.6) (177.6)* -

Purchases of intangible assets (0.1) (0.1)* (0.2)

Purchases of property, plant and equipment (63) (70)* (24)

Contingent consideration paid - - (61.6)

Loans granted to related and third parties (19.6) (37.6)* (12.5)

Loans and finance lease repayments received 1.3 1.3* 0.5

Other 2.2 2.6* 4.0

Net cash used in investing activities (256.6) (281.4)* (93.3)

Cash flow from financing activities

Proceeds from the issue of shares to non-controlling interest - - 12.8

Net cash inflows/(outflows) from borrowings and financial leases 210.3 168.6* (105.8)

Interest paid (15.0) (93.0)* (92.2)

Dividends paid to the owners of the Company (150.4) (153.9)* (48.5)

Expenses in relation to issued shares (1.5) (1.5)* -

Net cash from/(used) in financing activities 43.5 (79.7)* (233.6)

Summary Cash Flow Statement

DEFINITIONS

27

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, share of profit/losses of JVs accounted

for using equity method, 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;

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 is 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 half of cabotage cargo volumes. Respective

information is sourced from ASOP (“Association of Sea Commercial Ports”, www.morport.com);

Cash Costs of Sales (a non-IFRS financial measure) are defined as cost of sales, adjusted for depreciation and impairment of property, plant and equipment, amortisation of intangible assets;

Cash Administrative, Selling and Marketing expenses (a non-IFRS financial measure) are defined as administrative, selling and marketing expenses, adjusted for depreciation and impairment of

property, plant and equipment, amortisation of intangible assets;

CD Holding group consists of Yanino Logistics Park (an inland terminal in the vicinity of St-Petersburg), CD Holding and some other entities. The results of CD Holding group are accounted for in the

Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);

Far East Basin is 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;

First Container Terminal (FCT) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo and is one of the first specialised container terminals to be established in the USSR.

The Global Ports Group owns a 100% effective ownership interest in FCT. The results of FCT are fully consolidated;

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. The

results of the Finnish Ports segment are accounted for in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);

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

Functional Currency is defined as the currency of the primary economic environment in which the entity operates. The functional currency of the Company and certain other entities in the Global Ports

Group is US dollars. The functional currency of the Global Ports Group’s operating companies for the years under review was (a) for the Russian Ports segment, the Russian Rouble, (b) for Oil Products

Terminal segment, and for the Finnish Ports segment, the Euro;

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 terminals, Yanino and Logistika Terminal;

Logistika Terminal (LT) is an inland container terminal providing a comprehensive range of container freight station and dry port services at one location. The terminal is 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 LT. The results of LT

are fully consolidated;

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

MLT group consists of Moby Dik (a terminal in the vicinity of St-Petersburg) and Multi-Link Terminals Oy (terminal operator in Vuosaari (near Helsinki, Finland) and Kotka, Finland). The results of MLT

group are accounted for in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);

Moby Dik (MD) is located on the St. Petersburg ring road, approximately 30 kilometers from St. Petersburg, at the entry point of the St. Petersburg channel. It is the only container terminal in Kronstadt.

The Global Ports Group owns a 75% effective ownership interest in MD, Container Finance LTD currently has a 25% effective ownership interest. The results of MD are accounted for in the Global Ports’

financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);

DEFINITIONS

28

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). The results of the Oil Products

Terminal segment are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);

Operating Cash Costs of Russian Ports are defined as total Russian Ports segment’s cost of sales and administrative, selling and marketing expenses, less segment’s less depreciation and

impairment of property, plant and equipment, less amortisation of intangible assets, a non-IFRS measure;

Petrolesport (PLP) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo. The Group owns a 100% effective ownership interest in PLP. The results of PLP are fully

consolidated;

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;

Ro-Ro, roll on-roll off is 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 Global Ports Group’s interests in PLP (100%), VSC (100%), FCT (100%), ULCT (80%) (in which Eurogate currently has a 20% effective ownership interest),

Moby Dik (75%), Yanino (75%) (in each of Moby Dik and Yanino Container Finance currently has a 25% effective ownership interest), and Logistika Terminal (100%). The results of Moby Dik and Yanino

are accounted for in the Global Ports’ condensed consolidated financial information for 2014 as well as to the Illustrative Combined Metrics of 2013 financial information using equity method of

accounting (proportionate share of net profit shown below EBITDA);

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 Operating Cash Costs (a non-IFRS financial measure) is defined as Global Ports Group’s cost of sales, administrative, selling and marketing expenses, less depreciation and impairment of

property, plant and equipment, less amortisation of intangible assets;

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;

Ust Luga Container Terminal (ULCT) is located in the large multi-purpose Ust-Luga port cluster on the Baltic Sea, approximately 100 kilometres westwards from St. Petersburg city ring road. ULCT

began operations in December 2011. The Global Ports Group owns a 80% effective ownership interest in ULCT, Eurogate, the international container terminal operator, currently has a 20% effective

ownership interest. The results of ULCT are fully consolidated;

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. The results of Vopak E.O.S. are consolidated in the Global Ports’ financial information

using equity method of accounting (proportionate share of net profit shown below EBITDA);

Vostochnaya Stevedoring Company (VSC) is located in the deep-water port of Vostochny near Nakhodka on the Russian Pacific coast, approximately eight kilometers from the Nakhodka-Vostochnaya

railway station, which is connected to the Trans-Siberian Railway. The Group owns a 100% effective ownership interest in VSC. The results of VSC are fully consolidated; and

Yanino Logistics Park (YLP) is the first terminal in the Group’s inland terminal business and is one of only a few multi-purpose container logistics complexes in Russia providing a comprehensive range

of container and logistics services at one location. It is located approximately 70 kilometres from the Moby Dik terminal in Kronstadt and approximately 50 kilometres from PLP. The Global Ports Group

owns a 75% effective ownership interest in YLP, Container Finance LTD currently has a 25% effective ownership interest. The results of YLP are accounted for in the Global Ports’ financial information

using equity method of accounting (proportionate share of net profit shown below EBITDA).

INVESTOR RELATIONS Mikhail Grigoriev Phone: +357 25 313 475 E-mail: [email protected] Web: www.globalports.com

29

global ports fy14_results_presentation

Investor Relations

financial results of

financial information

ncc group limited

actual results of operations

actual financial position

year results presentation

share capital of ncc

future financial performance