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Financial Statements and Related Announcement::First Quarter Results

Issuer & Securities

Issuer/ Manager NEPTUNE ORIENT LINES LIMITED

Securities NEPTUNE ORIENT LINES LIMITED - SG1F90001388 - N03

Announcement Details

Announcement Title Financial Statements and Related Announcement

Date & Time of Broadcast 14-May-2014 17:16:23

Status New

Announcement Sub Title First Quarter Results

Announcement Reference SG140514OTHRCKOU

Submitted By (Co./ Ind. Name) Looi Lee Hwa (Ms) & Wong Kim Wah (Ms)

Designation Company Secretaries

Description (Please provide a detailed description of the event in the box below -Refer to the Online help for the format)

Attached are the Company's announcement, press release and corporate presentation materials relating to the NOL Group Unaudited Quarterly Financial Information for the 1st Quarter ended 4 April 2014.

Additional Details

For Financial Period Ended 04/04/2014

AttachmentsNOL Q1 2014 Financial Results.pdf

NOL Q1 2014 Results Press Release.pdf

NOL Q1 2014 Results Presentation.pdf

Total size =1090K

of 1Financial Statements and Related Announcement::First Quarter Results

14/5/2014http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=Announcem...

Company Announcements

NEPTUNE ORIENT LINES LIMITED (Reg. No. 196800632D)Unaudited Quarterly Financial InformationFor the 1st Quarter Ended 4 April 2014

1.(a)(i) Consolidated Income Statement

Q1 2014 Q1 2013 % Increase/US$'000 US$'000 (Decrease)

Revenue 2,279,234 2,371,052 (4)Cost of sales (2,169,663) (2,255,727) (4)Gross profit 109,571 115,325 (5)

Other gains (net) - Miscellaneous 6,759 201,173 (97)

- Finance and investment income 1,453 1,342 8Expenses

- Administrative: IT (34,105) (35,232) (3) - Administrative: non-IT (150,385) (148,124) 2 - Finance (32,879) (25,414) 29 - Other operating 3,062 (18,851) N/MShare of results of associated companies 1,913 2,414 (21)Share of results of joint ventures (70) (160) (56)(Loss)/profit before income tax (94,681) 92,473 N/M

Income tax expense (1,306) (15,945) (92)Net (loss)/profit for the financial period (95,987) 76,528 N/M

Net (loss)/profit attributable to:Owners of the Company (97,936) 75,509 N/MNon-controlling interest 1,949 1,019 91

(95,987) 76,528 N/M

1.(a)(ii) Notes to the Consolidated Income Statement

Q1 2014 Q1 2013 % Increase/US$'000 US$'000 (Decrease)

(A) Other Income Including Interest Income 3,349 2,433 38

(B) Net Interest on Borrowings (26,668) (15,852) 68

(C) Depreciation and Amortisation (97,384) (81,359) 20

(D) Allowance for Doubtful Debts and Bad Debts Written Back/(Off) 475 (3,002) N/M

(E) Write-back of Provision for Impairment in Value of Investments - 11 (100)

(F) Foreign Exchange Gain/(Loss) 15,958 (2,343) N/M

(G) Adjustment for Over Provision for Tax in Prior Years 13,966 808 1,628

(H) Profit on Sale of Investments, Property, Plant and Equipment and Other Assets

2,123 196,192 (99)

(I) Impairment Loss on Assets classified as held-for-sale - (3,700) (100)

(J) Write-Back/(Write-Off) of Inventories 43 (11) N/M

1.(a)(iii) Consolidated Statement of Comprehensive Income

Q1 2014 Q1 2013US$'000 US$'000

Net (loss)/profit for the financial period (95,987) 76,528

Other comprehensive income:Items that may be reclassified subsequently to profit or loss:Fair value loss on cash flow hedges (6,900) (11,653) Fair value (gain)/loss on cash flow hedges transferred to the income statement (2,388) 7,812 Fair value gain on available-for-sale financial asset 13 11 Share of other comprehensive income of associated company - 88 Currency translation differences (1,657) (2,540) Tax on fair value gain and loss 134 362 Other comprehensive income for the financial period, net of tax (10,798) (5,920) Total comprehensive income for the financial period (106,785) 70,608

Total comprehensive income attributable to:Owners of the Company (108,863) 69,498 Non-controlling interest 2,078 1,110

(106,785) 70,608

N/M: Not meaningful

Group

Group

Group

Page 1

1.(b)(i) Statement of Financial Position

4 Apr 2014 27 Dec 2013 % Increase/ 4 Apr 2014 27 Dec 2013 % Increase/US$'000 US$'000 (Decrease) US$'000 US$'000 (Decrease)

ASSETSCurrent AssetsCash and cash equivalents 605,446 980,993 (38) 61,211 767,481 (92)

Trade and other receivables 1 1,108,452 1,073,085 3 4,843,400 3,776,487 28

Available-for-sale financial assets 21,674 23,543 (8) - - 0Inventories at cost 247,246 254,232 (3) - - 0Derivative financial instruments 3,489 6,952 (50) 1,111 - N/MAssets classified as held-for-sale 8,300 12,297 (33) - - 0Other current assets 126,400 115,541 9 5,231 4,308 21

Total current assets 2,121,007 2,466,643 (14) 4,910,953 4,548,276 8

Non-current AssetsInvestments in subsidiaries - - 0 1,000,555 1,000,605 (0)Investments in associated companies 163,114 149,039 9 - - 0Investments in joint ventures 20,535 21,374 (4) - - 0Available-for-sale financial asset 90 83 8 - - 0Property, plant and equipment 6,247,014 6,097,508 2 361,366 973,999 (63)Deferred charges 6,844 5,765 19 6,704 5,267 27Intangible assets 30,975 31,245 (1) 2,394 2,381 1Land use rights 838 855 (2) - - 0Goodwill arising on consolidation 158,043 158,663 (0) - - 0Deferred income tax assets 30,175 33,437 (10) - - 0Derivative financial instruments 12,525 13,340 (6) 12,525 13,340 (6)Other non-current assets 50,841 51,083 (0) 179 177 1

Total non-current assets 6,720,994 6,562,392 2 1,383,723 1,995,769 (31)

TOTAL ASSETS 8,842,001 9,029,035 (2) 6,294,676 6,544,045 (4)

LIABILITIESCurrent Liabilities

Trade and other payables 1,311,877 1,252,421 5 1,319,935 1,222,566 8Current income tax liabilities 149,029 165,409 (10) 2,676 2,202 22Borrowings 282,391 599,119 (53) - 50,000 (100)Provisions 44,019 43,528 1 2,125 2,138 (1)Deferred income 6,739 7,670 (12) - - 0Derivative financial instruments 3,204 11,625 (72) - 8,442 (100)

Other current liabilities 2 255,496 232,195 10 - - 0

Total current liabilities 2,052,755 2,311,967 (11) 1,324,736 1,285,348 3

Non-current LiabilitiesBorrowings 4,437,169 4,266,827 4 1,905,379 2,179,969 (13)Provisions 173,424 171,977 1 - - 0Deferred income 4,282 6,016 (29) - - 0Deferred income tax liabilities 7,288 6,980 4 606 607 (0)Derivative financial instruments 72,589 65,168 11 54,003 52,705 2Other non-current liabilities 68,745 69,289 (1) - - 0

Total non-current liabilities 4,763,497 4,586,257 4 1,959,988 2,233,281 (12)

TOTAL LIABILITIES 6,816,252 6,898,224 (1) 3,284,724 3,518,629 (7)

NET ASSETS 2,025,749 2,130,811 (5) 3,009,952 3,025,416 (1)

EQUITYShare capital 1,833,472 1,830,222 0 1,833,472 1,830,222 0Treasury shares (5,216) (5,216) 0 (5,216) (5,216) 0

1,828,256 1,825,006 0 1,828,256 1,825,006 0Shares held by employee benefit trust (5,946) (6,146) (3) - - 0Treasury shares reserve (1,195) (1,195) 0 (1,195) (1,195) 0Retained earnings 190,797 288,733 (34) 1,156,125 1,168,368 (1)Statutory and other reserves (41,949) (29,295) 43 26,766 33,237 (19)Capital and reserves attributable to owners of the Company 1,969,963 2,077,103 (5) 3,009,952 3,025,416 (1)Non-controlling interest 55,786 53,708 4 - - 0

TOTAL EQUITY 2,025,749 2,130,811 (5) 3,009,952 3,025,416 (1)

Net current assets 68,252 154,676 (56) 3,586,217 3,262,928 10

1 Trade receivables include the full freight revenue for voyages, which corresponds to the contractual rights stipulated in the standard Bill of Lading and is inclusive of the freight

charges collectable at destination for Free on Board shipments.2 Other current liabilities relates to deferred revenue arising from the percentage-of-completion method for revenue recognition.

N/M: Not meaningful

Group Company

Page 2

1.(b)(ii) Borrowings

SecuredThe Group Secured Unsecured finance leaseAs at 4 April 2014 borrowings borrowings liabilities Total

US$'000 US$'000 US$'000 US$'000

Amount repayable on or before 3 April 2015, or on demand 170,705 102,225 9,461 282,391 Amount repayable on or before: 1 Apr 2016 187,223 664,267 10,111 861,601 7 Apr 2017 203,132 168,772 10,651 382,555 6 Apr 2018 190,744 388,923 11,203 590,870 5 Apr 2019 182,571 - 11,835 194,406 Thereafter 1,402,734 782,545 222,458 2,407,737

2,337,109 2,106,732 275,719 4,719,560

SecuredSecured Unsecured finance lease

As at 27 December 2013 borrowings borrowings liabilities TotalUS$'000 US$'000 US$'000 US$'000

Amount repayable in FY 2014, or on demand 141,663 448,666 8,790 599,119 Amount repayable on or before: FY 2015 157,744 550,571 9,360 717,675 FY 2016 169,071 444,228 10,039 623,338 FY 2017 156,240 504,630 10,516 671,386 FY 2018 145,040 - 11,188 156,228 Thereafter 1,093,600 779,352 225,248 2,098,200

1,863,358 2,727,447 275,141 4,865,946

1.(b)(iii) Operating Lease Commitments

The future aggregate minimum lease payable under non-cancellable operating leases of the Group are as follows:

The Group

As at 4 April 2014 Vessels Containers Terminals Chassis Others 3 TotalUS$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Amount repayable for the remainder of FY 2014 298,769 44,683 59,180 2,308 42,939 447,879 Amount repayable in:

FY 2015 261,868 51,456 73,944 1,012 42,103 430,383 FY 2016 161,898 15,152 70,546 - 27,511 275,107 FY 2017 122,818 6,806 70,681 - 14,492 214,797 FY 2018 116,626 5,277 62,282 - 7,639 191,824

Thereafter 323,123 9,084 535,296 - 9,192 876,695

1,285,102 132,458 871,929 3,320 143,876 2,436,685

As at 27 December 2013 Vessels Containers Terminals Chassis Others 3 TotalUS$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Amount repayable in FY 2014 445,690 61,544 84,966 3,412 68,168 663,780 Amount repayable in:

FY 2015 261,868 51,429 70,501 1,038 40,896 425,732 FY 2016 161,898 15,153 70,636 - 25,743 273,430 FY 2017 122,818 6,807 70,772 - 14,114 214,511 FY 2018 116,702 5,277 62,282 - 7,459 191,720 Thereafter 323,047 9,083 535,297 - 9,129 876,556

1,432,023 149,293 894,454 4,450 165,509 2,645,729

3 Others relate mainly to warehouse space, warehouse equipment, inland container yards, housing rental, office space and land.

The borrowings and finance lease liabilities are secured mainly on vessels.

Page 3

1.(c) Consolidated Statement of Cash Flows

Q1 2014 Q1 2013US$'000 US$'000

Cash Flows from Operating Activities(Loss)/Profit before income tax (94,681) 92,473 Adjustments for :Depreciation and amortisation 97,384 81,359 Fair value loss on financial instruments 8,483 78 Deferred charge expense 792 2,053 Net interest expense 26,668 15,852 Interest income (1,453) (1,342) Share-based compensation costs 1,502 1,782 Net (write-back)/write-off of inventories (43) 11 Fair value (gain)/loss on shares held by employee benefit trust (486) 54 Net (profit)/loss on disposal of property, plant and equipment (15) 1,804 Net profit on disposal of assets classified as held-for-sale (2,108) (198,036)

Net loss on disposal of other assets - 40 Gain on re-measurement of previously held interest in joint venture - (441) Impairment loss on assets classified as held-for-sale - 3,700 Net provision for/(write-back of) impairment of assets 620 (11) Net provision for liabilities 7,871 5,174 Share of results of associated companies (1,913) (2,414) Share of results of joint ventures 70 160 Unrealised currency translation gain (7,795) (537) Operating cash flow before working capital changes 34,896 1,759

Changes in operating assets and liabilitiesReceivables and other assets (37,739) (65,703) Inventories 7,029 (4,564) Payables 69,508 125,571 Provisions (6,227) (10,564) Cash generated from operations 67,467 46,499 Interest paid (20,340) (17,659) Interest received 1,282 1,523 Net income tax paid (12,882) (15,849) Net cash inflow from operating activities 35,527 14,514

Cash Flows from Investing ActivitiesAcquisition of subsidiaries, net of cash acquired - 2,339 Investment in associated company (13,715) (4,711) Proceeds/(repayment) from loans receivables 35 (5) Dividends received from joint venture 25 - Purchase of property, plant and equipment (246,803) (384,551) Purchase of intangible assets (1,051) (835) Proceeds from disposal of assets classified as held-for-sale 6,105 323,425 Proceeds from disposal of property, plant and equipment 1,480 16,358 Proceeds from disposal of other assets 1,875 29 Net cash outflow from investing activities (252,049) (47,951)

Cash Flows from Financing ActivitiesProceeds from borrowings 1,352,480 1,441,369 Net cash (outflow)/inflow contributed by employee benefit trust (30) 22

Dividends paid to non-controlling interest - (2,378) Proceeds from issue of new ordinary shares - 176 Repayment of borrowings (1,509,604) (992,152) Payment of costs incurred in connection with long term financing (1,871) (1,012) Net cash (outflow)/inflow from financing activities (159,025) 446,025

Net (decrease)/increase in cash and cash equivalents (375,547) 412,588 Cash and cash equivalents at beginning of financial period 980,993 896,978 Cash and cash equivalents at end of financial period 605,446 1,309,566

1.(d)(i) Statement of Changes in Equity

GROUP Share capital Treasury shares

Shares held by employee

benefit trustTreasury shares

reserveRetained earnings

Statutory and other

reservesNon-controlling

interest Total equity

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Balance at 28 December 2013 1,830,222 (5,216) (6,146) (1,195) 288,733 (29,295) 53,708 2,130,811 Employee equity compensation schemes: - value of employee services - - - - - 1,502 - 1,502 - new shares issued 3,250 - - - - (3,250) - - Sale of shares by employee benefit trust - - 200 - - - - 200 Share of statutory reserves of associated company - - - - - 21 - 21 Total comprehensive income for the financial period - - - - (97,936) (10,927) 2,078 (106,785)

Balance at 4 April 2014 1,833,472 (5,216) (5,946) (1,195) 190,797 (41,949) 55,786 2,025,749

GROUP Share capital Treasury shares

Shares held by employee

benefit trustTreasury shares

reserveRetained earnings

Statutory and other

reservesNon-controlling

interest Total equity

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Balance at 29 December 2012 1,826,723 (5,216) (5,320) (1,195) 373,033 (48,606) 53,689 2,193,108 Dividends to non-controlling interest - - - - - - (2,378) (2,378) Employee equity compensation schemes: - value of employee services - - - - - 1,782 - 1,782 - new shares issued 3,003 - - - - (2,827) - 176 Sale of shares by employee benefit trust - - 70 - - - - 70 Acquisition of subsidiaries - - - - - - 1,041 1,041 Share of other changes in equity of associated company - - - - - (274) - (274) Total comprehensive income for the financial period - - - - 75,509 (6,011) 1,110 70,608 Transfer from retained earnings to statutory reserves - - - - (3,135) 3,135 - -

Balance at 5 April 2013 1,829,726 (5,216) (5,250) (1,195) 445,407 (52,801) 53,462 2,264,133

Capital and reserves attributable to owners of the Company

Capital and reserves attributable to owners of the Company

Group

Page 4

1.(d)(i) Statement of Changes in Equity (continued)

COMPANY Share capital Treasury sharesTreasury shares

reservesRetained earnings Other reserves Total equity

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Balance at 28 December 2013 1,830,222 (5,216) (1,195) 1,168,368 33,237 3,025,416 Employee equity compensation schemes: - value of employee services - - - - 1,502 1,502 - new shares issued 3,250 - - - (3,250) - Total comprehensive income for the financial period - - - (12,243) (4,723) (16,966)

Balance at 4 April 2014 1,833,472 (5,216) (1,195) 1,156,125 26,766 3,009,952

COMPANY Share capital Treasury sharesTreasury shares

reservesRetained earnings Other reserves Total equity

US$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Balance at 29 December 2012 1,826,723 (5,216) (1,195) 1,019,738 28,586 2,868,636 Employee equity compensation schemes: - value of employee services - - - - 1,782 1,782 - new shares issued 3,003 - - - (2,827) 176 Total comprehensive income for the financial period - - - (8,063) 3,207 (4,856)

Balance at 5 April 2013 1,829,726 (5,216) (1,195) 1,011,675 30,748 2,865,738

1.(d)(ii) Details of any changes in the Company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of

equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of

shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued

shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding

financial year.

2. Basis of Preparation

3. Negative Assurance Confirmation by the Board Pursuant to Rule 705(5) of the Listing Manual

4. Audit or Review of Figures

5. Auditors' Report (including any qualifications or emphasis of matter)

N.A.

6. Contingent Liability

The figures have not been audited or reviewed by our auditors.

The preparation of the first quarter 2014 interim financial information in conformity with Singapore Financial Reporting Standards requires management to exercise its judgement in the process of applying theNeptune Orient Lines Limited Group’s accounting policies. It also requires the use of accounting estimates and assumptions that affect the reported amounts of assets and liabilities as at 4 April 2014 and thereported amounts of revenue and expenses during the financial period from 28 December 2013 to 4 April 2014. Although these estimates are based on management’s best knowledge of current events andactions, actual results may ultimately differ from those estimates.

On behalf of the board of directors of the Company, we, the undersigned, hereby confirm to the best of our knowledge that nothing has come to the attention of the board of directors of the Companywhich may render the interim financial information for the first quarter ended 4 April 2014 to be false or misleading in any material aspect.

On behalf of the board of directors

QUEK SEE TIAT NG YAT CHUNGDirector Director

Dated this 14 May 2014

Issued and paid up capitalAs at 27 December 2013, the Company's issued and paid-up capital (including treasury shares) comprised 2,591,758,446 ordinary shares. The Company's issued and paid-up capital (excluding treasury shares) comprised 2,590,031,729 ordinary shares.

During the 3 months ended 4 April 2014, the Company issued and allotted 2,883,002 ordinary shares upon the vesting of restricted shares granted under the NOL Restricted Share Plan 2010 ("NOL RSP 2010").

As at 4 April 2014, the Company's issued and paid-up capital (including treasury shares) comprised 2,594,641,448 ordinary shares. The Company's issued and paid-up capital (excluding treasury shares) comprised 2,592,914,731 ordinary shares.

Share optionsAs at 27 December 2013, there were 36,487,845 outstanding share options to subscribe for unissued ordinary shares exercisable at any time during the exercise periods under the NOL Share Optioin Plan ("NOL SOP").

During the 3 months ended 4 April 2014, 487,051 share options were cancelled.

As at 4 April 2014, share options to subscribe for 36,000,794 (5 April 2013: 37,465,728) ordinary shares remain outstanding under the NOL SOP.

Restricted sharesAs at 27 December 2013, there were 5,977,092 outstanding restricted shares under the NOL RSP 2010.

During the 3 months ended 4 April 2014, 6,408,850 restricted shares were awarded, 2,883,002 restricted shares were vested and 163,337 restricted shares were cancelled .

As at 4 April 2014, 9,339,603 (5 April 2013: 6,498,432) restricted shares remain outstanding under the NOL RSP 2010.

Performance sharesAs at 27 December 2013, there were 6,206,696 outstanding performance shares under the NOL Performance Share Plan 2010 ("NOL PSP 2010").

During the 3 months ended 4 April 2014, 4,944,000 performance shares were awarded and 78,668 performance shares were cancelled.

As at 4 April 2014, 11,072,028 (5 April 2013: 8,068,350) performance shares remain outstanding under the NOL PSP 2010.

Treasury sharesAs at 27 December 2013, there were 1,726,717 treasury shares that may be re-issued upon the exercise of options under the NOL SOP and the vesting of restricted shares and performance shares under the NOL RSP 2010 and NOL PSP 2010 respectively.

During the 3 months ended 4 April 2014, no treasury shares were sold, transferred, disposed, cancelled and/or re-issued by the Company pursuant to the NOL SOP, NOL RSP 2010 and NOL PSP 2010.

In addition, no shares were purchased for the purposes of fulfilling the Company's obligations under the NOL SOP, NOL RSP 2010 and NOL PSP 2010.

As at 4 April 2014, there were 1,726,717 (5 April 2013: 1,726,717) treasury shares remaining that have not been re-issued.

Tax ExposuresThe U.S. Internal Revenue Service (“the IRS”) audited the 2007, 2008 and 2009 US federal tax returns of APL Limited, a subsidiary company within the NOL Group ("the Group") and issued a Notice Of Proposed Adjustments ("NOPA") on 7 April 2014, proposing certain adjustments. APL Limited disagrees with the IRS's proposed adjustments and will be defending its tax position through the IRS administrative procedures. The Group is not able to determine with certainty the ultimate outcome of the IRS eventual assessment. As of end of Quarter 1, 2014, based on available facts and information, the Group believes that it has provided adequate provisions for the open matters referred to in the NOPA.

Page 5

7. Accounting Policies

Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.

8.(a) If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, to disclose what has changed, as

well as the reasons for, and the effect of, the change.

8.(b) Comparatives

Comparative figures have been restated due to the change in definition of Core EBIT.

9.Q1 2014 Q1 2013

GROUP

(Loss)/Earnings per ordinary share after deducting

any provision for preference dividends

(adjusted to exclude shares held by employee

benefit trust and treasury shares)

a) Based on the weighted average number

of ordinary shares on issue (3.79 US cts) 2.92 US cts

b) On a fully diluted basis

(detailing any adjustments made to the earnings) (3.79 US cts) 2.91 US cts

10. Net Asset Value

4 Apr 2014 27 Dec 2013 Inc / (Dec) 4 Apr 2014 27 Dec 2013 Inc / (Dec)

US$ US$ % US$ US$ %

Net Asset Value per ordinary share based on

issued share capital (adjusted to exclude treasury

shares) of the issuer 0.76 0.80 (5.00) 1.16 1.17 (0.85)

11. Review of the Performance of the Group

Q1 2014 Q1 2013US$'m US$'m

(a) Revenue

Liner 1,878 1,967

Logistics 423 427

Elimination (22) (23)

Total 2,279 2,371

(b) Core EBIT 4

Liner (83) (92)

Logistics 18 16

Total (65) (76)

4 Earnings before Net Finance, Tax and Exceptional (Non-Recurring) Items. With effect from Q3 2013, in addition to interest expense, the definition of Core EBIT has changed to exclude other

finance expense and income. Comparative numbers have been restated accordingly.

Group Company

On 28 December 2013, the Group and the Company adopted the new or revised Singapore Financial Reporting Standards ("FRS"), which are effective for the Group's financial period beginning 28 December2013.

The following are the FRS that are relevant to the Group and the Company:

FRS 32 : Offsetting Financial Assets and Financial Liabilities (Effective for annual periods beginning on or after 1 January 2014)FRS 39 : Novation of Derivatives and Continuation of Hedge Accounting (Effective for annual periods beginning on or after 1 January 2014)FRS 110 and FRS 27 : Consolidated Financial Statements and Separate Financial Statements (Revised) (Effective for annual periods beginning on or after 1 January 2014)FRS 111 and FRS 28 : Joint Arrangement and Investment in Associates and Joint Ventures (Revised) (Effective for annual periods beginning on or after 1 January 2014)FRS 112 : Disclosure of Interests in Other Entities (Effective for annual periods beginning on or after 1 January 2014)Amendments to FRS36 : Recoverable Amount Disclosures for Non-financial Assets

The adoption of the above FRS did not result in substantial changes to the Group’s accounting policies and did not have any significant impact on the financial position and results of the Group and the Company.

Except as disclosed under Note 8(a), the Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the auditedfinancial statements as at 27 December 2013.

Income Statement:NOL Group achieved revenue of US$2.28 billion (Q1 2013: US$2.37 billion), a decrease of US$0.09 billion. This was mainly due to decrease in Liner revenue from lower freight rates.

The Group's cost of sales decreased by US$0.09 billion or 4% YoY to US$2.17 billion mainly due to operational cost efficiencies.

Other miscellaneous gains decreased by US$194 million or 97% YoY to US$7 million mainly due to disposal of NOL building in Q1 2013.

Finance expenses increased by US$7 million or 29% YoY to US$33 million mainly due to higher interest expenses from higher average loan balances and interest rates.

The Group recorded other operating gains of US$3 million in Q1 2014 compared to other operating expenses of US$19 million in Q1 2013 mainly due to increase in foreign exchange gain.

Despite the Group making losses (before any capital gains), tax expense was incurred mainly due to certain entities in the Group generating tax assessable income in the jurisdictions in which theyoperate.

The Group recorded net loss attributable to owners of the Company of US$98 million in Q1 2014 compared to net profit of US$76 million in Q1 2013 mainly due to one time gain from disposal of NOL building in Q1 2013. Despite weak global economic conditions, the Group narrowed its net operating losses due to continued efficiency and cost management efforts.

Balance Sheet:NOL Group's total assets decreased by US$187 million from US$9.03 billion as at 27 December 2013 to US$8.84 billion as at 4 April 2014. The decrease in total assets was mainly due to decrease incash and cash equivalents, partially offset by increase in property, plant and equipment. Please refer to the explanation below for the decrease in cash and cash equivalents. The increase in property,plant and equipment was mainly due to progressive payments made for previously ordered new vessels.

The Group's total liabilities decreased by US$82 million from US$6.90 billion as at 27 December 2013 to US$6.82 billion as at 4 April 2014. The decrease in total liabilities was mainly due to decreasein borrowings [see Note 1(b)(ii)] during the quarter.

The Group's total equity decreased by US$105 million from US$2.13 billion as at 27 December 2013 to US$2.03 billion as at 4 April 2014 mainly due to net loss incurred during the quarter.

Cashflow:NOL Group's cash and cash equivalents decreased by US$376 million from US$0.98 billion as at 27 December 2013 to US$0.61 billion as at 4 April 2014 mainly due to net cash outflow from investingactivities of US$252 million and net cash outflow from financing activities of US$159 million, partially offset by net cash inflow from operating activities of US$35 million. Net cash outflow from investingactivities was mainly due to progressive payments made for previously ordered new vessels. Net cash outflow from financing activities was mainly due to net repayment of borrowings.

Page 6

(c) Analysis by Business Units

(i) Liner

LINER Q1 RESULTS 2014 and 2013Unaudited

Q1 2014 Q1 2013

Load Factors %

Transpacific and Asia-Latin America/Mexico Eastbound 92% 91%Intra-Asia Westbound 96% 93%Asia-Europe Westbound 98% 92%Transatlantic Westbound 93% 78%Headhaul 95% 91%

Volume ('000 FEU)Transpacific 224 224 Intra-Asia 344 340 Asia-Europe 119 109 Latin America 53 52 Transatlantic 45 47

Total Volume 5 785 772

Average Revenue/FEU (US$/FEU)Transpacific 3,292 3,471 Intra-Asia 1,264 1,425 Asia-Europe 2,410 2,413 Latin America 3,271 3,591 Transatlantic 2,689 2,628

Total 2,233 2,376

5 Represents volume recognised from each Bill of Lading upon commencement of shipment on vessels.

(ii) Logistics

LOGISTICS Q1 RESULTS 2014 and 2013UnauditedUS$ millions

Q1 2014 Q1 2013

BY REGION

Revenue

Americas 262 271

Europe 44 39

Asia/Middle East 117 117

Total Revenue 423 427

BY BUSINESS SEGMENT

Revenue

Contract Logistics Services 271 274

International Services 152 153

Total Revenue 423 427

Operating Expenses



Total Operating Expenses 405 411

Core EBIT 6



Total Core EBIT 18 16

6 Earnings before Net Finance, Tax and Exceptional (Non-Recurring) Items. With effect from Q3 2013, in addition to interest expense, the definition of Core EBIT has changed to exclude other

finance expense and income. Comparative numbers have been restated accordingly.

Liner achieved Q1 2014 revenue of US$1.9 billion, a year-on-year (YoY) decrease of 5% mainly due to lower freight rates.

Volume increased by 2%YoY mainly due to higher volume in the Asia-Europe trade lane.

Liner maintained high utilisation rate >90% through strict capacity management.

Cost of sales per FEU decreased by 6% YoY mainly due to operational cost efficiencies.

Weaker freight rates, mainly in the Transpacific and Intra-Asia trade lanes, lowered average revenue per FEU to US$2,233 or 6% lower YoY.

As a result, Liner reduced its Core EBIT loss by 10% YoY to US$83 million in Q1 2014.

Logistics achieved Q1 2014 revenue of US$423 million, decreasing 1% YoY, partly due to severe weather conditions affecting goods transportation in North America.

Contract Logistics achieved revenue of US$271 million, a 1% decrease YoY.

International Services achieved revenue of US$152 million, marginally lower YoY.

Firmer margins and cost discipline helped Logistics achieve Core EBIT of US$18 million for Q1 2014, a 13% increase YoY.

Page 7

12. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

13. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the Group operates and any

known factors or events that may affect the Group in the next reporting period and the next 12 months.

14. Dividend

(a) Any dividend recommended for the current financial year reported on?

(b) Any dividend declared for the corresponding period of the immediately preceding financial year?

(c) Date payable

(d) Books closure date

(e) If no dividend has been declared (recommended), a statement to that effect.

No dividend has been declared or recommended for the current financial period.

15. Interested Person Transactions

Q1 2014 Q1 2013

US$'000 US$'000

Transactions for the Purchase of Goods and Services

PSA Corporation Limited and its associates 61,767 52,821

Singapore Telecommunications Limited and its associates 99 -

The above relates to cumulative value of transactions (inclusive of GST) more than S$100,000.

BY ORDER OF THE BOARD

LOOI LEE HWA AND WONG KIM WAH

Company Secretaries

Dated this 14 May 2014

Aggregate value of all transactions conducted under a shareholders' mandate pursuant to Rule 920 of the SGX-ST Listing Manual

Nil

N.A.

N.A.

Nil

Not applicable as no forecast or prospect statement has been previously made.

Global economic prospects and trading conditions remain uncertain. Oversupply of shipping capacity will continue to exert pressure on liner freight rates.The Group aims to improve its financial performance in 2014, through its continued focus on cost discipline and drive for operational efficiency.

Page 8

1

NOL reports year-on-year improvement in 1Q 2014 Core EBIT

Group’s performance improves 14%, buoyed by cost management and efficiency gains

SINGAPORE, 14 May 2014 – NOL Group today reported a 14% improvement in its first

quarter 2014 Core EBIT (Earnings Before Interest, Taxes and Non-Recurring Items),

narrowing its loss to US$65 million from a year ago.

The Group also reported positive Core EBITDA of US$33 million this quarter, compared to

US$5 million in the same period last year. NOL attributed the improvement to its continuing

focus on cost management and operational efficiency, which delivered US$80 million worth of

cost savings in the first three months of 2014.

“Operating conditions in the first quarter had been difficult, with severe weather disruptions in

Europe and North America. This compounded the challenges posed by continued excess

capacity in the container shipping business,” said NOL Group President & CEO Ng Yat Chung.

“Nonetheless, both our business units delivered better year-on-year operating results this

quarter. Going forward, global economic prospects and trading conditions remain uncertain.

Oversupply of shipping capacity will continue to exert pressure on liner freight rates. The

Group aims to improve its financial performance in 2014, through its continued focus on cost

discipline and drive for operational efficiency. We will also seek growth opportunities,

particularly in our logistics business.”

NOL Group posted a first quarter 2014 net loss of US$98 million, compared to a US$76 million

profit in the same period last year which included a US$200 million gain from the sale of the

NOL headquarter building in Singapore.

FINANCIAL PERFORMANCE

1Q14 1Q13 Better/(Worse) Change %

Revenue (US$m)

2,279 2,371 (4)

Core EBITDA (US$m)

33 5 560

Core EBIT (US$m)

(65) (76) 14

Net (loss)/profit (US$m)

(98) 76 n.m.

2

n.m. not meaningful

Note: With effect from 3Q13, in addition to interest expense, the definition of Core EBIT has changed to exclude other finance expense and income. Comparative numbers have been restated accordingly.

BUSINESS SEGMENTS

APL, NOL’s container shipping business, lifted its 1Q 2014 Core EBIT by 10% over the same

period last year, recording a loss of US$83 million. Cost savings and efficiency gains helped

reduce cost of sales per forty-foot-equivalent unit (FEU) by 6%. APL reported first quarter

2014 revenue of US$1.9 billion, while its year-on-year volume grew 2%, and its average freight

rates dipped 6%.

“APL’s emphasis on capacity management, as well as savings in areas such as bunker

consumption and vessel and voyage operations, helped cushion the impact of falling freight

rates in this year’s first quarter,” said APL President Kenneth Glenn. “As more of our

newbuildings come on stream in the following months, along with the scheduled return of less

efficient chartered tonnage, we are on track to continue lowering slot costs and further

strengthen our competitiveness.”

APL’s headhaul utilisation was at an optimal 95% in the first quarter of 2014. APL registered

a 9% volume expansion with stable freight rates in the Asia-Europe trade. Volume was firm in

the Trans-Pacific trade with freight rates falling 5%, while its Intra-Asia trade grew 1% in

volume against an 11% dip in freight rates, amidst intense market competition and excess

tonnage cascading from the Asia-Europe trade.

NOL’s supply chain management business, APL Logistics, made a year-on-year Core EBIT

improvement of 13% in the first quarter of this year, which reflected its continuing focus on

profit optimisation. Its revenue of US$423 million was relatively unchanged from that of the

same quarter last year.

In 1Q 2014, revenue from Contract Logistics was steady at US$271 million, with Core EBIT

rising 13% year-on-year to US$9 million. At the same time, International Logistics Services’

revenue remained stable at US$152 million, with Core EBIT going up 13% year-on-year to

US$9 million. APL Logistics’ expanding business in emerging markets helped to offset

persistent sluggish demand in developed markets which slowed down overall industry growth.

Its continued focus on cost discipline also improved the company’s operating performance.

3

“The first quarter performances of our core International Logistics and Contract Logistics

businesses had been satisfactory, and we are progressing steadily on our growth trajectory,”

said APL Logistics President Beat Simon. “While our automotive logistics services are still

feeling some impact from the ongoing automotive plant shutdown in North America, our growth

strategy in the emerging markets has continued to propel our business. We remain focused

on realising growth opportunities in selected verticals and attractive markets.”

1Q 2014 OPERATING PERFORMANCE

Liner Shipping


Revenue (US$m)

1,878 1,967 (5)

Core EBITDA (US$m)

12 (14) n.m.

Core EBIT (US$m)

(83) (92) 10

Average Revenue/FEU (US$)

2,233 2,376 (6)

Volume (‘000 FEU)

785 772 2

n.m. not meaningful

Logistics


Revenue (US$m)

423 427 (1)

Core EBITDA (US$m)

21 19 11

Core EBIT (US$m)

18 16 13

Core EBIT Margin (%)

4.3 3.7 -

Note: With effect from 3Q13, in addition to interest expense, the definition of Core EBIT has changed to exclude other finance expense and income. Comparative numbers have been restated accordingly.

Media enquiries Investor enquiries

Pamela Pung Au Kah Soon Telephone: (65) 6371 7959 Telephone: (65) 6371 2597 Email: [email protected] Email: [email protected]

Clarence Au Kheng Sheng Telephone: (65) 6371 5180

Email: [email protected]

mailto:[email protected]



4

About NOL Neptune Orient Lines (NOL) is a Singapore-based global container shipping and logistics company. Its container shipping arm, APL, provides world-class container shipping and terminal services, as well as intermodal operations supported by leading-edge IT and e-commerce. Its logistics business, APL Logistics, provides international, end-to-end logistics services and solutions, employing the latest IT and data connectivity for maximum supply chain visibility and control. NOL Web site: www.nol.com.sg.

http://www.nol.com.sg/

1Q 2014 Performance Review

14 May 2014

Forward Looking Statements

The following presentation includes forward-looking statements, which involve known and

unknown risks and uncertainties, that could cause actual results or performance to differ.

Forward looking information is based on current views and assumptions of management,

including, but not limited to, prevailing economic and market conditions. Such statements

are not, and should not be interpreted as a forecast or projection of future performance.

1Q 2014 Performance Review

| 14 May 2014 | 1Q 2014 Performance Review

NOL Group 1Q14 Results Highlights

Logistics increased profitability

Liner capacity & cost discipline drove improved results

Group reports YoY improvement in 1Q Core EBIT

• Revenue eased 4% to US$2.3b

• Achieved US$80m cost savings

• Core EBIT loss improved 14% YoY to US$65m

• Net loss before NRI narrowed 16% to US$98m

• Revenue fell 5% YoY as overcapacity impacted freight rates in core

trade lanes

• Disciplined capacity management while growing volume 2% YoY

• Operational efficiencies reduced Core EBIT loss 10% YoY to US$83m

• Firm demand in Europe & Asia/Mid-East offset lower US revenue

• Logistics Core EBIT of US$18m, up 13% YoY on firmer margins


Operational & cost efficiencies continued to

improve Group Core EBIT

2,378 2,333 2,302 2,499

2,371

2,064 2,062

2,334 2,279

(226)

19

80

(56)(76)

(31)

22

(82)(65)

-300

-200

-100

0

100

200

0

1,000

2,000

3,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Revenue (US$m) (LHS) Core EBIT (US$m) (RHS)

Revenue(US$m)

Core EBIT(US$m)


Group achieved US$80m cost savings

1Q14 cost savings categories

Bunker & Network-related65%

Others10%

Terminals, Land

Operations, Equipment

25%


Group will continue its focus on efficiency

Global economic prospects and trading conditions remain uncertain. Oversupply

of shipping capacity will continue to exert pressure on liner freight rates. The

Group aims to improve its financial performance in 2014, through its continued

focus on cost discipline and drive for operational efficiency.

2. 1Q 2014 Financial Performance


2,371 2,279

1,500

2,000

2,500

1Q13 1Q14

US$m

Group Financial Highlights

Revenue declined 4% on weaker freight rates

(US$m) 1Q13 1Q14% ▲ Better/

(Worse)

Liner 1,967 1,878 (5)

Logistics 427 423 (1)

Elimination (23) (22) 4

Total 2,371 2,279 (4)

Revenue

4%


5

33

-

20

40

1Q13 1Q14

US$m

(76)

(65)

(90)

(60)

(30)

1Q13 1Q14

US$m


1) With effect from 3Q13, in addition to interest expense, the definition of Core EBIT and Core EBITDA have changed to exclude other finance expense and income.

Comparative numbers restated accordingly

2) Core EBIT excludes non-recurring items

Core EBIT

Significantly improved Core EBITDA & Core EBIT

Core EBITDA

14%

560%


(Worse)

Liner (92) (83) 10

Logistics 16 18 13

Total (76) (65) 14


(Worse)

Liner (14) 12 n.m.

Logistics 19 21 11

Total 5 33 560


76

(98) (140)

(70)

-

70

140

1Q13 1Q14

US$m


1Q13 net result included US$200m NOL building sale gain

Net Profit / (Loss)

1Q13 included

US$200m building

sale gain


Group Balance Sheet Highlights

US$m 4 Apr 14 27 Dec 13

Total Assets 8,842 9,029

Total Liabilities 6,816 6,898

Total Equity 2,026 2,131

Total Debt 4,720 4,866

Total Cash 605 981

Net Debt 4,115 3,885

Gearing (Gross) 2.33 x 2.28 x

Gearing (Net) 2.03 x 1.82 x

NAV per share (US$) 0.76 0.80

(S$) 0.96 1.02


US$m 1Q14 1Q13

Cash & Cash Equivalents – Beginning @ Q1 981) 897)

Cash Inflow / (Outflow)

Operating Activities 35) 15)

Investing/Capex Activities (252) (48)

Financing Activities (159) 446)

Cash & Cash Equivalents – Closing @ Q1 605) 1,310)

Group Cash Flow Highlights

Note:

1) 1Q13 Investing/Capex Activities includes proceeds from NOL building sale


US$m 1Q14 1Q13

1. Vessels 216 336

2. Equipment / Facilities 3 6

3. Drydock 11 17

4. IT 14 23

5. Others 4 3

Total 248 385

Group Capital Expenditure

3. Liner


Liner 1Q 2014 Highlights

Capacity & cost discipline delivered improved results

• Industry overcapacity pressured freight rates in core trade lanes:

Trans-Pacific and Intra-Asia

• Disciplined capacity management while growing volume 2% YoY

• Lower freight rates reduced revenue 5% YoY to US$1.9b

• Focused cost management improved cost of sales/FEU by 6% YoY

• Fleet efficiency improved with delivery of 7 vessels (ave size 10,500

TEU) and disposal/return of 6 vessels (ave size 6,700 TEU)

• Bunker consumption reduced 5% YoY (35k MT)

• Core EBIT loss reduced 10% to US$83m


Overcapacity in APL core trades drove down spot freight rates

Notes:

1) Source: Alphaliner

2) * Intra-Asia SCFI YoY % Change is a blended average of short sea and long haul trade routes

1Q13 Industry

deployed capacity

(M TEU)

1Q14 Industry

deployed capacity

(M TEU)

Asia-Europe

3,815

Trans-Pacific

2,756

Intra-Asia

3,522

Asia-Europe

3,933

Trans-Pacific

2,963

Intra-Asia

3,915

3%

8%

11%

Asia-Europe

+7 %

Trans-Pacific

-16 %

Intra-Asia*

-21 %

YoY SCFI ChangeYoY change


1,967

1,878

1,600

1,800

2,000

1Q13 1Q14

US$m

APL partly mitigates rate weakness through

capacity management & cargo mix

5%

Revenue

• Revenue/FEU fell 6% YoY on industry overcapacity in

Trans-Pacific & Intra-Asia

• Revenue down 5% on lower freight rates


93%94% 94%

92%91%

90%91%

93%

95%

80%

90%

100%

110%

40,000

50,000

60,000

70,000

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Average Capacity

(weekly TEUs)

Utilisation %

Note: Figures are based on the headhaul leg of main linehaul services

The capacity figures take into account “winter program” initiations

Strict capacity management maintained high

utilisation rate, helped by 2% YoY volume growth

Average 1Q

capacity +2%


1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Liner Cost of Sales/FEU Liner Cost of Sales/FEU at fixed bunker price*

US$/FEU

Increased competitiveness as slot costs

continue to be reduced

* Calculated cost of sales per FEU at fixed bunker price of US$600/MT from 1Q12 to 1Q14

$120/FEU*

YoY

reduction


0

50,000

100,000

150,000

200,000

2012 2013 1Q 2014 2Q 2014

14

7

Newbuilds (TEUs)

6 x 14,000 TEU

6 x 9,000 TEU

1 x 9,000 TEU2 x 8,100 TEU

Total vessels

10

10 x 10,000 TEU 2 x 14,000 TEU

5 x 9,000 TEU

3

2 x 14,000 TEU

Vessel returns due FY14 offer opportunity to further

increase competitiveness through fleet modernisation

2012 2013 1Q14 2Q – 4Q14

Charter returns/

vessel disposals31 14 6 14

Note: 1) 5 out of the 10 x 14,000 TEU vessels for delivery between 2013 and 2014 will be chartered out to MOL

1


(92)

(83)

(100)

(80)

(60)

1Q13 1Q14

US$m

Core EBIT loss reduced by 10% YoY

Cost of sales/FEU

-6% YoY

Round trip

profitability 10%

Note: With effect from 3Q13, in addition to interest expense, the definition of Core EBIT has changed to exclude other finance expense and income.


Core EBIT

• Strict cost management

• Focus on round-trip profitability


Liner business conditions

APL

Industry

• Overcapacity will persist

• Cascading of large ships expected to impact multiple trade

lanes

• Increased scrapping to partially remove inefficient capacity

• Continue focus on:

o Improved competitiveness by lowering slot costs

o Being the customer’s carrier of choice

o Sustained cost & efficiency mindset

o Operational excellence to reduce complexity, increase

productivity

4. Logistics


Logistics 1Q14 Results Highlights

Firm business conditions in Europe & Emerging Markets

delivered improved Core EBIT

• Stronger Europe growth helped offset lower US business

• Stable Asia/Middle East demand

• Revenue US$423m, eased 1% YoY

• Core EBIT of US$18m, improved 13% YoY

• Core EBIT margin of 4.3%, up from 3.7% in 1Q13


427 423

-

200

400

600

1Q13 1Q14

US$m

Revenue eased 1% in 1Q14

1%

Severe US weather

affected transport

network

Continued demand

in Europe &

Asia/ME

Revenue

• Europe segment grew 13% YoY

• US segment down 3% YoY


27%

(Asia/Middle

East)

64%

(Americas)

9% (Europe)

$117

$271

$39

1Q13 Revenue Breakdown– by Region (US$m)

$427

Revenue Trend by Region

Firm demand in Europe and Asia/Middle East

1Q14 Revenue Breakdown– by Region (US$m)

62%

(Americas)

10% (Europe)

$117

$262

$44

28%

(Asia/Middle

East)

$423


16

18

10

15

20

1Q13 1Q14

US$m

Core EBIT improved 13% on higher margins

Improved

margins

Cost discipline

13%

Note: With effect from 3Q13, in addition to interest expense, the definition of Core EBIT has changed to exclude other finance expense and income.


Core EBIT


Revenue and Core EBIT Margin Trend

3.3%

2.5%

5.2%

6.0%

3.7%

2.9%

5.1%4.4% 4.3%

0.0%

5.0%

10.0%

10.0

15.0

20.0

25.0

30.0

35.0

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

Weekly Revenue (US$m) (LHS) Core EBIT Margin (%) (RHS)

Weekly Revenue(US$m)

Core EBITMargin (%)


Logistics business conditions

APL Logistics

Industry

• Severe weather conditions in the U.S. slowed down the U.S.

market

• Growing consumption in emerging markets provide new supply

chain management opportunities

• Growth focus in selected verticals and attractive markets

• Maintain financial & cost discipline in pursuing opportunities

Appendix


US$m 1Q14 1Q13% ▲

Better/

(Worse)

Revenue 2,279 2,371 (4)

Core EBITDA 33 5 560

Core EBIT (before non-recurring items) (65) (76) 14

Non-recurring items1 - 192 (100)

EBIT (65) 116 n.m.

Net (loss)/profit to owners of the

company(98) 76 n.m.

Net loss to owners of the company

(before non-recurring items)

(98) (116) 16

Group Financial HighlightsCore EBIT improved 14% YoY, Net loss ex-NRI improved

16% YoY

Note:

1) 1Q13 non-recurring items includes US$200m gain from sale of NOL building

2) With effect from 3Q13, in addition to interest expense, the definition of Core EBITDA, Core EBIT and EBIT have changed to

exclude other finance expense and income. Comparative numbers restated accordingly.


Financial Highlights by Business Segment

Revenue (US$m) 1Q14 1Q13% ▲

Better/ (Worse)

Liner 1,878 1,967 (5)

Logistics 423 427 (1)

Elimination (22) (23) 4

Total Revenue 2,279 2,371 (4)

Core EBIT (US$m) 1Q14 1Q13% ▲

Better/ (Worse)

Liner (83) (92) 10

Logistics 18 16 13

Total Core EBIT (65) (76) 14

Note:

1) With effect from 3Q13, in addition to interest expense, the definition of Core EBIT has changed to exclude other finance expense and income. Comparative

numbers restated accordingly


Liner Results Summary

US$m 1Q14 1Q13% ▲

Better/ (Worse)

Revenue 1,878 1,967 (5)

Core EBITDA 12 (14) n.m.

Core EBIT (83) (92) 10

EBIT (82) 72 n.m.

Core EBIT margin (%) (4.4) (4.7)

Note:

1) With effect from 3Q13, in addition to interest expense, the definition of Core EBITDA, Core EBIT and EBIT have changed to exclude other finance expense and

income. Comparative numbers restated accordingly

2) 1Q13 EBIT of US$72m is mainly due to US$172m non-recurring item from sale of NOL building


Liner Operational Update

Note: Based on point of sailing and inclusive of headhaul and backhaul trade.

Volume (‘000 FEUs) 1Q14 1Q13 % ▲

Transpacific 224 224 -

Intra-Asia 344 340 1

Asia-Europe 119 109 9

Latin America 53 52 2

Transatlantic 45 47 (4)

Total 785 772 2

Average Revenue/FEU (US$) 1Q14 1Q13 % ▲

Transpacific 3,292 3,471 (5)

Intra-Asia 1,264 1,425 (11)

Asia-Europe 2,410 2,413 -

Latin America 3,271 3,591 (9)

Transatlantic 2,689 2,628 2

Total 2,233 2,376 (6)


Logistics Results Highlights

US$m 1Q14 1Q13% ▲

Better/ (Worse)

Revenue 423 427 (1)

Core EBITDA 21 19 11

Core EBIT 18 16 13

EBIT 17 44 (61)

Core EBIT margin (%) 4.3 3.7

Note:

1) With effect from 3Q13, in addition to interest expense, the definition of Core EBITDA, Core EBIT and EBIT have changed to exclude other finance expense and

income. Comparative numbers restated accordingly

2) 1Q13 EBIT of US$44m is mainly due to US$28m non-recurring item from sale of NOL building


Performance Breakdown

Firmer margins improved Core EBIT by 13% to US$18m

1Q14 1Q13% ▲ Better/

(Worse)

Revenue (US$m) 423 427 (1)

• Contract Logistics 271 274 (1)

• International Services 152 153 (1)

Core EBIT (US$m) 18 16 13

• Contract Logistics 9 8 13

• International Services 9 8 13

Core EBIT Margin (%) 4.3 3.7

• Contract Logistics 3.3 2.9

• International Services 5.9 5.2


Group Fuel and Currency Exposures

Bunker

The Group continues to recover part of its fuel price increases from customers through

bunker adjustment factors.

The Group also maintains a policy of hedging its bunker exposures.

Foreign exchange

Major foreign currency exposures are in Euro, Singapore Dollar, Canadian Dollar,

Japanese Yen and Chinese Renminbi.

The Group maintains a policy of hedging its foreign exchange exposures.

End of Presentation

Thank You

Neptune Orient Lines Ltd

456 Alexandra Road,

NOL Building

Singapore 119962

Tel: (65) 6278 9000

Fax: (65) 6278 4900

Company registration

number : 196800632D

Website: www.nol.com.sg

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