global ports - 2014 interim results presentation

Global Ports Investments PLC

2014 Interim Results Presentation

15 September 2014

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 six-months period ended 30 June 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 six-month

period ended 30 June 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 six-month period ended 30 June 2013 are presented in separate columns in the tables presenting financial information.

The Illustrative Combined Financial Metrics represent information prepared based on estimates and assumptions deemed appropriate by the Group and is 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 35-36

REFERENCE TO ACCOUNTS AND OPERATIONAL INFORMATION

Unless stated otherwise all financial information in this presentation is extracted from the Interim Condensed Consolidated Financial Information of the Company for the

six months period ended 30 June 2014 and 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 Interim Condensed Consolidated Financial Information for the six months period ended 30 June 2014 is 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.

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”).


CONTENTS

4 Definitions for terms marked in this presentation with capital letters are provided in the Appendices on pages 35-36

Page

I. Global Ports at a Glance 5

II. 1H 2014: Focus on efficiency and strong pricing 6

III. Russian container market 7

IV. High potential for further containerization across key industries 8

V. Operational and commercial developments 9

VI. Financial highlights: 1H 2014 10

Focus on operational efficiency 11

Other segments 12

Strong cash flow and low capex enable swift deleveraging 13

VII. Key takeaways 14

VIII. Appendices

Enlarged Global Ports 15

Selected operational and financial information 20

Terminals overview 26

The #1 container terminal operator in Russia(1)

● Market leadership reinforced by acquisition of Global Port’s largest competitor, NCC Group Limited(1) at the end of 2013

Russian container market is fundamentally attractive due to low levels of containerization across industries

● Global Ports has a strong presence and available capacity in both key basins: Baltic and the Far East

High cash flow generation and low CAPEX requirements

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 2013 and 1H 2014 overall Container Throughput in the Russian Federation ports without transit cargo volumes.

(2) As of 30.06.2014

Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 35-36

BALTIC BASIN

BLACK SEA BASIN

FAR EAST 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

1H 2014: FOCUS ON EFFICIENCY AND STRONG PRICING

6

Successful commercial

campaign

Focus on operating improvements of the enlarged operation

● Operating cash costs(1) reduced 13%* y-o-y during 1H 14

● A number of further initiatives are being implemented

Integration of NCC completed, run rate of around USD 8 million* annual cost savings secured

Integration completed,

focus on operating

improvements

(1) Data based on an equity method accounting of joint ventures..

(2) Recommended by the Board of Directors, subject to EGM approval to be held on 22 October 2014. Payout ratio calculated as the sum of dividends recommended divided by Net profit attributable to the owners of the company. of 1H 14

High cash flow and

reduced CAPEX, focus

on deleveraging

Margin expansion,

Adjusted EBITDA

broadly flat

Adjusted EBITDA margin expanded c. 340 bps* to a record level of 66.3%*

Adjusted EBITDA broadly flat at USD 190 million*

● Cost reductions mitigated the 4.7%* revenue decline

Strong cash flow generation with net cash from operating activities of USD 158 million in 1H 14

CAPEX amounted to USD 13 million in 1H 14(1)

● CAPEX guidance for 2014 and next few years lowered to USD 35-45 million(1)

Net debt reduced by c. USD 70 million, Net Debt / LTM Adjusted EBITDA decreased from

3.7 to 3.5 times(1)

Dividend of USD 0.12* per GDR recommended (33%* dividend payout ratio)(2)


Revenue per TEU(2) up 4.6%* compared to the second half of 2013 reflecting the successful

2014 commercial campaign supported by our unparalleled network of terminals

Russia World Turkey NorthAmerica

Europe

1H 2013 1H 20141H 2013 1H 2014

Russian container market grew by 2% in 1H 14(1)

● Declining growth since 2Q bringing YTD growth to 1%*

Laden export grew 25%* y-o-y during 1H 14(2), positively

impacted by the depreciation of the Russian rouble and

ongoing containerization of exports

Impact of ban on food imports is likely to be muted:

● Only about 2-3%* of overall Russian container volumes affected

● Containerization levels of banned cargoes were relatively low

● Volumes may recover if these imports are replaced by deep sea

deliveries which usually have higher containerization levels

No known sizeable capacity additions in the Russian market

during the next 12 months

Containerisation level remains low in Russia:

42 TEU per thousand capita(3) in 2013

RUSSIAN CONTAINER MARKET

7

Container Throughput in Russia

mill

ion T

EU

Source: ASOP

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

(2) Source: ASOP, YTD data of January - August 2014.

(3) Source: Drewry; some 2013 numbers are estimated.


+25%*

+2%*

Container Throughput

Export laden

Containerization level, TEU per 1000 capita

mill

ion T

EU

2.55* 2.60*

Source: Drewry; 2013 data

90 95

134 135

42

0.37* 0.47*

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 CONTAINERIZATION ACROSS KEY INDUSTRIES1


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, calculated as total containerized 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

Containerization of imports(2) Containerization 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%


1H 2013 2H 2013 FY 2013 1H 2014

OPERATIONAL AND COMMERCIAL DEVELOPMENTS

9

Revenue per TEU* (Russian Ports)(1)

mill

ion T

EU

Gross container throughput*(2)

1.27* 1.23*


(1) Data for 1H 2013, 2H 2013, and FY 2013 is based on an Illustrative Combined basis, including the results of NCC Group.

(2) 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, Illustrative combined throughput

includes throughput of Global Ports standalone and NCC Group

US

D

Growth in revenue per TEU 1H 2014 vs FY 2013 due to a

successful pricing campaign supported by an unparalleled

network of container terminals in Russia

● Partially offset by continued trend in declining storage

time

Expansion of capacity at fast-growing VSC completed –

increased by 100 thousand TEU* to 650 thousand TEU*

Gross container throughput decreased 1.3%*. Active ramp-up

of ULCT (+146%*) and growth at VSC (+9%*) and the Finnish

Ports segment (+16%*) were offset by:

● High exposure to the Russian Baltic basin where market

decreased by 3%* y-o-y

● Loss of volumes in the Russian Baltic basin to low cost

competition due to “pricing over market share ” strategy

of Global Ports

Strong growth in cars (+21%*) and traditional Ro-Ro (+24%*)

0.12* 0.11*

1.37* 1.36*

Russian ports Finnish ports Total marine

container throughput

1H 2013

1H 2014

-1.3% -2.8%

+16% 210*

199*

208*

205*

+4.6%

+1.7%

1H 2013 1H 2014

1H 2013 1H 2014

1H 2013 1H 2014

1H 2013 1H 2014

1H 2013 1H 2014

1H 2013 1H 2014

FINANCIAL HIGHLIGHTS: 1H 2014(1)

10

Revenues reflected volume change

Margin expansion driven by

positive FX impact and cost control

Reduced CAPEX, dividend declared

287 301 mln

US

D

Revenue

-4.7%

mln

US

D 0.4%

Adjusted EBITDA and Adjusted EBITDA margin

-44%

CAPEX


mln

US

D

189* 190*

23

13

66.3%* 62.9%*

Group’s revenues decreased 4.7%* to USD 287

million y-o-y largely driven by a 3%* decrease in

container volumes in the Russian Ports segment and

slight decline in revenue per TEU y-o-y

Positive FX impact and cost control measures in Russian

Ports segment led to a 13% reduction in Group’s

Operating Cash Costs

Adjusted EBITDA margin up c. 340 bps* to record 66.3%*

Adjusted EBITDA was broadly flat at USD 190 million*

as cost reductions mitigated the 4.7%* revenue decline

Cash CAPEX was USD 13 million

● CAPEX guidance for 2014 and next few years cut to

USD 35-45 million(2)

Global Ports recommended a dividend of USD 23

million* (USD 0.12* per GDR)(3)

● Payout ratio of 33%* of Net profit

319 307

65.3%* 68.1%*

0.3%

208* 209*

-43%

24

14

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 (see page 17 for further details)

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


(3) Recommended by the Board of Directors, subject to EGM approval. Payout ratio calculated as the sum of dividends recommended divided by Net profit attributable to the owners of the company of 1H 14.

Staff costs

Transportation expenses

Fuel, electricity and gas

Repair and maintenance of PPE

Other

FOCUS ON OPERATIONAL EFFICIENCY(1)


Further measures to take effect in

2H 14 and 2015

Headcount: up to 5% reduction in operating staff of

Russian Ports segment by year end

Process optimisation: NCD operations eliminated(2)

Asset disposal: sale of captive trucking business signed

Maintenance: dismiss unutilised equipment

Centralisation of procurement

11

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

(2) See page 19 for further details

Operating improvements at the enlarged

operation launched

Comprehensive analysis of efficient use of available

capacity launched immediately after the NCC acquisition

● Distribution of container volumes in North West and

related headcount optimisation

● Adjustments to operating processes and practices as

a result of the above

● Equipment utilization and technical asset management

Operating Cash Costs of the Russian Ports segment

decreased by 11%* during 1H 14 y-o-y (broadly flat in

Rouble terms). Inflationary pressures largely mitigated by:

● Optimisation of repairs

● Decrease in transportation expenses via

optimisation of intra-terminal movements

● Thorough control over other expenses

1H 2013 1H 2014

Operating Cash Costs of Russian Ports segment

mln

US

D

-12.7

-11%

97.8* 110.5*

Breakdown of Operating Cash Costs of Russian

Ports segment (1H 14)

mln

US

D

28.7;

29%

6.5;

7%

8.4;

9%

47.2;

48%

7.0;

7%

OTHER SEGMENTS

12

Vopak E.O.S. continues to operate in a

challenging market environment

Finnish Ports segment - growth in volumes and

Adjusted EBITDA

Throughput, mln tons

5.6*

4.1*

-28%

114

68

-40%

50*

26*

-48%

1H 2013

1H 2014

105*

1.8*

11.3 122* 12.7

2.1*

16%

12%

21%

Throughput, mln TEU Revenue, USDm Adjusted EBITDA, USDm


Revenue, USDm Adjusted EBITDA

(USDm) and Adjusted

EBITDA margin (%)

Environment remains challenging as cargo owners

prefer to handle more product in Russia

● Revenue declined 40% y-o-y due to lower volumes and

increased share of lower-revenue generating seaborne

deliveries

● Restructuring and lower volumes resulted in a 35%*

reduction in the segment’s cash costs

● Adjusted EBITDA decreased 48%* to USD 26 million*

Adverse trends continued into the 2H 14

Finnish Ports segment throughput increased 16%* supported

by volumes from new clients acquired in 2013

Revenues increased 12% resulting in strong growth at

EBITDA level (+21%*)

1H 2013

1H 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 (see page 17 for further details)

44.3%* 38.8%*

as at 31.12.13 as at 30.06.14

STRONG CASH FLOW AND LOW CAPEX ENABLE SWIFT DELEVERAGING

13

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

Net cash flow from operating activities 1H 2014 annualised(2)

Cash and deposits(3) as at 30/06/14

Debt repayment schedule as at 30/06/14

315

116 88* 88*

150*


(1) Net debt to LTM Adjusted EBITDA

(2) Calculated as Net cash flow from operating activities for 6m 2014 multiplied by two.

(3) Including deposits with the maturity over 90 days


(5) Including cross-currency interest rate swap arrangement

Healthy net cash flow from operating activities of

USD 158 million in 1H 14

Comfortable debt repayment schedule

CAPEX guidance for the next few years lowered to

USD 35-45 million(4)

Net debt of USD 1,253 million* as of 30 June 2014, net debt to

LTM Adjusted EBITDA at 3.5 times*

● Net debt reduced by USD 70 million during 1H 14

Average interest rate of the debt portfolio decreased from 6.2%

to 5.4% % during 1H 2014

Around 100% of debt portfolio denominated in US dollars(5) as of

30.06.14 matching revenues mainly denominated in US dollars

1H 2014

annualised

Cash and

deposits 2H 2014 2015 2016 2017

198*

mln

US

D

1,323

1,253

3.5x(1) 3.7x Debt repayment in 2H 2014

as at 31.12.13 as at 30.06.14

Net debt, USD million

AVG interest rate, %

6.2% 5.4%

KEY TAKEAWAYS

14

Russian market is undercontainerized

Despite recent slowdown in growth rates, the Russian container market remains

fundamentally attractive due to low levels of containerization across industries


Global Ports is the market leader with a proven track record

Cost control and efficiency are priorities

Strategy of solid pricing over market share

Strong FCF and focus on deleveraging

Global Ports is the clear leader in the Russian container market with a proven track

record and a clear strategy in place

Successful commercial campaign and unparalleled network of container terminals

provided for strong pricing in 1H 14

Focus on efficiency and cost control led to a 13%* decrease of Operating cash

costs in 1H 14

Further measures are being implemented

Focus on FCF generation and deleveraging

● Lowered CAPEX guidance for the next few years to USD 35-45 million

● Structurally lower cost base due to efficiency improvements

15

APPENDIX #1

Enlarged Global Ports

POST TRANSACTION CORPORATE STRUCTURE1

16

Entity Partner Share Partner Profile

Vopak E.O.S. Royal Vopak 50%

• Global market leader in independent bulk liquid storage terminals

• 79 terminals with a combined storage capacity of more than 31 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

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 September 2014.


OVERVIEW OF JV ACCOUNTING IMPLEMENTATION


100% basis consolidation in IFRS

● Adjusted EBITDA of USD 190 million

Proportional share of Net Profit reported below EBITDA:

● Proportional share of net loss of USD 9 million

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

available in IFRS statement’s segment note 7

Segment on a 100% basis

● EBITDA: USD 209 million

Segment on a 100%

basis

● EBITDA: USD 26 m

Segment on a 100%

basis

● EBITDA: USD 2 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

WELL INVESTED 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 30 June 2014

Black Sea Basin 16% of Russian market 6m 2014 throughput

Russia

• Capacity: 440 ths. TEU

NCSP

Novorossiysk

Black

Sea

Turkey


NUTEP (Delo)

Baltic Sea Basin 55% of Russian market 6m 2014 throughput

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)

Far East Basin 27% of Russian market 6m 2014 throughput


VSC


VMTP (FESCO)

Vladivostok

Okhotsk

Sea

Moscow


VSFP


Russia

China

Finland

Other terminals


18

OPTIMIZING OPERATIONS: NCD1 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 dropped 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

(1) National Container Depot

20

APPENDIX #2 Selected operational and financial information

SELECTED COMBINED OPERATIONAL INFORMATION1

21

Source: The management accounts


1H 2013 1H 2014

1H 2013 1H 2014

Gross throughput Gross throughput

Russian Ports segment Finnish Ports segment

Globalports containerized cargo (thousand TEUs)

PLP 371 338 Containerized cargo (thousand TEUs) 105 122

VSC 224 243

Moby Dik 112 114

FCT 540 487 Oil Products Terminal segment

ULCT 21 51

Total Russian Ports segment

1,268 1,233

Oil products Gross Throughput (million

tonnes) 5.6 4.1

Non-containerized cargo

Ro-ro (thousand units) 10 13

Cars (thousand units)

51 62

Bulk cargo (thousand tonnes) 478 429

(1) Global Ports standalone gross container throughput includes 100% throughput in PLP, VSC, and Finnish ports, NCC Group throughput includes 100% throughput of FCT and ULCT, Illustrative combined throughput includes

throughput of Global Ports standalone and NCC Group. The data is on a 100% basis.

(2) Total throughput of Russian Ports excludes the throughput of Yanino which, in 1H 2013 and 1H 2014 was 31 thousand TEUs and 42 thousand TEUs respectively and the throughput of LT which, in 1H 2013 and 1H 2014 was 49

thousand TEUs and 48 thousand TEUs respectively;

SELECTED COMBINED OPERATIONAL INFORMATION (continued)

22

Source: The management accounts


1H 2014 1H 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) 400 Oil 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

1) 1H 2013 data is based on Illustrative Combined basis, including the results of NCC Group

Summary Income Statement

'000 USD 1H 2013

Reported

1H 2013

Illustrative

Combined1

1H 2014

Reported

Revenue 168,767 300,568* 286,518

Cost of sales (69,959) (142,405)* (123,428)

Gross profit 98,808 158,163* 163,090

Selling, general and administrative expenses (18,312) (26,842)* (26,536)

Share of profit of joint ventures 6,311 6,311* (9,081)

Other gains/(losses) - net 2,893 6,256* (1,455)

Operating profit 89,700 143,888* 126,018

Finance income/(costs) - net (16,552) (29,977)

Profit before income tax 73,148 96,041

Income tax expense (19,433) (29,815)

Profit for the period 53,715 66,226

Profit attributable to:

Owners of the Company 53,742 69,910

Non-controlling interests (27) (3,684)

Adjusted EBITDA 104,334* 189,086* 189,926*

Adjusted EBITDA Margin 61.8%* 62.9%* 66.3%*

GLOBAL PORTS CONSOLIDATED BALANCE SHEET1

24


(1) Including bank deposits with maturity over 90 days

(2) Restated data as a result of applying an equity method accounting of the Group’s joint ventures, which were previously propor tionally consolidated


Summary Balance Sheet

'000 USD 31-Dec-132 30-Jun-14

PP&E (incl. prepayments) 1,337,318 1,269,552

Intangible assets 1,441,140 1,388,907

Other non-current assets 245,880 235,600

Cash and equivalents1 114,208 115,488

Other current assets 137,747 69,010

Total assets 3,276,293 3,078,557

Equity attributable to the owners of the Company 1,208,030 1,179,851

Minority interest (15,353) 38,350

LT borrowings 1,230,925 1,244,021

Other non-current liabilities 447,831 441,338

ST borrowings 206,388 124,151

Other current liabilities 198,472 50,846

Total equity and liabilities 3,276,293 3,078,557

GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT



1) 1H 2013 data is based on Illustrative Combined basis, including the results of NCC Group

Summary Cash Flow Statement

'000 USD 1H 2013

Reported

1H 2013

Illustrative

Combined1

1H 2014

Reported

Cash generated from operations 110,608 196,303* 173,421

Dividends received from joint ventures 63,653 63,653* 8,260

Tax paid (23,412) (28,146)* (23,978)

Net cash from operating activities 150,849 231,810* 157,703

Cash flow from investing activities

Acquisition of subsidiary under common control net of cash acquired 516*

Purchases of intangible assets (57) (57)* (63)

Purchases of property, plant and equipment (17,786) (23,056)* (13,013)

Proceeds from sale of property, plant and equipment 156 156* 379

Contingent consideration paid - -* (55,706)

Loans granted to related and third parties (15,299) (32,314)* (6,222)

Loans and finance lease repayments received 871 871* 730

Interest received 441 688* 632

Investment in bank deposits with maturity over 90 days - -* 989

Net cash used in investing activities (31,674) (53,196)* (72,274)

Net cash from/(used) in financing activities (119,612) (173,242)* (79,026)

Net increase/(decrease) in cash and cash equivalents (437) 5,372* 6,403

Cash and cash equivalents at the beginning of the year 77,935 114,906* 113,219

Exchange gains/(losses) on cash and cash equivalents (4,151) (4,789)* (4,134)

Cash and cash equivalents at the end of the year 73,347 115,489* 115,488

Terminals Overview

26

APPENDIX #3

27

PLP: TERMINAL LAYOUT(1)


(1) As of 30.06.2014

Main characteristics of the terminal:

• Total Area: 123 ha

• Number of berths: 13

• Quay length: 2,201 m

• Maximum ship draft: 11 m

• Railway track length: 6,037 m

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

Western Speed Diameter

Tunnel

Ro-Ro

Terminal

Reefers

Loaded containers

28

(1) As of 30.06.2014


FCT: TERMINAL LAYOUT(1)



• 4 operational berths of 780 m length, depth

alongside – 11.5 meters

• Railway track length: 3.3 km

Capacity

• Containers: 1,250,000 TEU

• Reefer sockets: 2,905

VSC: TERMINAL LAYOUT(1)

29

(1) As of 30.06.2014

Berths

Railway line Railway line

Coal

terminal

Reefers

Loaded containers

Empty containers



• Number of berths: 4

• Total length of the quay line: 1,284 m

• Quay water depth: 13.5 m

• Railway infrastructure: 3 railway lines

• Container capacity: 650,000 TEU

• Reefer containers storage area: 225 plugs


MOBY DIK: TERMINAL LAYOUT(1)

30

(1) As of 30.06.2014

Container yard

City ring road

Reefer container yard

Container yard

Reefers

Loaded containers

Empty containers

Area for potential

development

Custom inspection zone


• Total Area: 15.1 ha

• Two cargo quays able to accept container

vessels and Ro-Ro vessels

• Total quay length is 321 m

• Maximum vessel draft is 8.9 m

• Container capacity: 400,000 TEU

• Reefer stands with 504 sockets


Buffer area for

handling vessels

VEOS: TERMINAL LAYOUT(1)

31

(1) As of 30.06.2014

Area to be developed

Gulf of

Finland

Pakterminal

Trendgate terminal

Termoil terminal

Pipelines

18 m

Railway unloading

Railway unloading

Railway unloading


• Area: 131.2 ha

• Berths: 7

• Access: Vessel, Barge, Rail, Truck

• Capacity: 1,026,000 cbm

• Tanks: 78

• Tank range: from 1,500 to 100,000 cbm

• 442 advanced rail unloading positions


ULCT: TERMINAL LAYOUT(1)


(1) As of 30.06.2014

• Operations started in December 2011



• Length of operational berths: 440 m, depth

alongside: up to 13.5 m

• 5 railway tracks of 525m length (25 rail wagons)

each

Capacity

• Containers: 440,000 TEU

• Reefer sockets: 420

Reefers

Containers

YANINO: TERMINAL LAYOUT(1)

33

(1) As of 30.06.2014

Temporary storage

warehouse (TSW)

Koltushskoe highway St.Petersburg

C class warehouse (cold)

General cargo area

Rail crossing

Ref. containers area

Railway lines

Container yard

Area to be

developed

Reefers

Loaded containers


• Total Area: 51.3 ha

• Container Capacity: 200 000 TEU

• General cargo capacity: 400 000 tonnes

• Railway infrastructure: 2 railway lines with

4 km of overall length

• C class warehouse: 29 500 sqm

• № of el. plugs: 120

Custom zone for bulk cargo


LOGISTIKA TERMINAL: TERMINAL LAYOUT(1)

34

St.Petersburg Moskovskoe highway

A class warehouse

C class warehouse (cold)

Railway lines

(1) As of 30.06.2014

Reefers

Loaded containers

Container yard

Roofed rail flyover

Temporary storage

warehouse (TSW)


Access road



• Container Capacity: 200,000 TEU

• Heated warehouse: 10,500 sqm

• Unheated warehouse: 6,000 sqm

• № of el. plugs: 50

Custom zone for containers

DEFINITIONS

35

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 consolidated 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 consolidated 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 consolidated 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 consolidated in the Global Ports’

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

DEFINITIONS

36

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 consolidated in the Global Ports’ interim condensed consolidated financial information for first half of 2014 as well as to the Illustrative Combined Metrics of first half 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 consolidated in the Global Ports’ financial information

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

INVESTOR RELATIONS Mikhail Grigoriev

Tatyana Stepanova

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

37

global ports - 2014 interim results presentation

Investor Relations