apps?a=cow corpannouncement content&b=an...investments in subsidiaries - - 0 1,050,555 1,000,605...

Tweet 0 0

Financial Statements and Related Announcement::Third Quarter Results

Issuer & Securities

Issuer/ Manager NEPTUNE ORIENT LINES LIMITED

Securities NEPTUNE ORIENT LINES LIMITED - SG1F90001388 - N03

Stapled Security No

Announcement Details

Announcement Title Financial Statements and Related Announcement

Date & Time of Broadcast 31-Oct-2014 17:15:06

Status New

Announcement Sub Title Third Quarter Results

Announcement Reference SG141031OTHRD202

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 3rd Quarter ended 19 September 2014.

Additional Details

For Financial Period Ended 19/09/2014

AttachmentsNOL Q3 2014 Financial Results.pdf

NOL Q3 2014 Results Press Release.pdf

NOL Q3 2014 Results Presentation.pdf

Total size =2258K

0Like

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

31/10/2014http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&B=Announce...

Company Announcements

NEPTUNE ORIENT LINES LIMITED (Reg. No. 196800632D)Unaudited Quarterly Financial InformationFor the 3rd Quarter Ended 19 September 2014

1.(a)(i) Consolidated Income Statement

YTD 2014 YTD 2013 % Increase/ Q3 2014 Q3 2013 % Increase/US$'000 US$'000 (Decrease) US$'000 US$'000 (Decrease)

Revenue 6,389,009 6,497,187 (2) 2,059,563 2,062,574 (0)Cost of sales (5,905,734) (6,039,933) (2) (1,853,765) (1,868,969) (1)Gross profit 483,275 457,254 6 205,798 193,605 6

Other gains (net) - Miscellaneous 17,709 217,507 (92) 4,334 1,644 164

- Finance and investment income 4,651 3,904 19 1,428 1,285 11Expenses

- Administrative: IT (90,664) (104,490) (13) (28,619) (32,502) (12) - Administrative: non-IT (434,514) (419,070) 4 (135,800) (135,095) 1 - Finance (99,812) (16,970) 488 (34,628) 7,841 N/M - Other operating (40,393) (42,361) (5) (28,759) (9,793) 194Share of results of associated companies 5,857 7,355 (20) 1,242 2,379 (48)Share of results of joint ventures 1,229 17 7,129 782 89 779(Loss)/profit before income tax (152,662) 103,146 N/M (14,222) 29,453 N/M

Income tax expense (15,771) (39,165) (60) (7,035) (8,320) (15)Net (loss)/profit for the financial period (168,433) 63,981 N/M (21,257) 21,133 N/M

Net (loss)/profit attributable to:Owners of the Company (174,770) 60,883 N/M (23,093) 19,990 N/MNon-controlling interest 6,337 3,098 105 1,836 1,143 61

(168,433) 63,981 N/M (21,257) 21,133 N/M

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

YTD 2014 YTD 2013 % Increase/ Q3 2014 Q3 2013 % Increase/US$'000 US$'000 (Decrease) US$'000 US$'000 (Decrease)

(A) Other Income Including Interest Income 11,511 6,594 75 2,599 2,519 3

(B) Net Interest on Borrowings 1 (89,615) (27,964) 220 (32,516) (18,066) 80

(C) Depreciation and Amortisation (283,576) (228,016) 24 (92,946) (76,664) 21

(D) Allowance for Doubtful Debts and Bad Debts Written Off (7,296) (5,507) 32 (3,976) (390) 919

(E) Write-back of Provision for Impairment in Value of Investments - 11 (100) - - 0

(F) Foreign Exchange Gain/(Loss) 12,771 29,522 (57) (7,496) 31,794 N/M

(G) Adjustment for Over/(Under) Provision for Tax in Prior Years 21,723 2,329 833 3,985 (3,088) N/M

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

4,853 205,505 (98) 1,478 (2,520) N/M

(I) Impairment Loss on Assets (4,471) (5,303) (16) (3,851) - N/M

(J) Write-off of Inventories (315) (7) 4,400 (276) (21) 1,214

1 YTD 2013 amount includes realised gains from financial hedging instruments.

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

YTD 2014 YTD 2013 Q3 2014 Q3 2013US$'000 US$'000 US$'000 US$'000

Net (loss)/profit for the financial period (168,433) 63,981 (21,257) 21,133

Other comprehensive income:Items that will not be reclassified to profit or loss:Re-measurement of net defined benefits obligations 3,136 - 3,136 -

3,136 - 3,136 -

Items that may be reclassified subsequently to profit or loss:Fair value (loss)/gain on cash flow hedges (15,225) (10,320) (16,757) 22,416 Fair value (gain)/loss on cash flow hedges transferred to the income statement (1,432) 19,540 6,761 (4,885) Fair value (loss)/gain on available-for-sale financial assets (6) 26 (11) - Fair value gain on available-for-sale financial asset transferred to the income statement (28) - (28) - Share of other comprehensive income of associated company (3,043) 1,855 181 29 Currency translation differences (4,872) (41,715) (1,118) (32,872) Tax on fair value gain and loss 5 (178) (40) (148)

(24,601) (30,792) (11,012) (15,460) Other comprehensive income for the financial period, net of tax (21,465) (30,792) (7,876) (15,460) Total comprehensive income for the financial period (189,898) 33,189 (29,133) 5,673

Total comprehensive income attributable to:Owners of the Company (196,197) 30,738 (30,873) 4,588 Non-controlling interest 6,299 2,451 1,740 1,085

(189,898) 33,189 (29,133) 5,673

N/M: Not meaningful

Group Group

Group Group

Group Group

Page 1

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

19 Sep 2014 27 Dec 2013 % Increase/ 19 Sep 2014 27 Dec 2013 % Increase/US$'000 US$'000 (Decrease) US$'000 US$'000 (Decrease)

ASSETSCurrent AssetsCash and cash equivalents 808,834 980,993 (18) 478,093 767,481 (38)

Trade and other receivables 2 1,151,591 1,073,085 7 3,442,093 3,776,487 (9)

Available-for-sale financial assets 15,216 23,543 (35) - - 0Inventories at cost 232,325 254,232 (9) - - 0Derivative financial instruments 2,936 6,952 (58) - - 0Assets classified as held-for-sale - 12,297 (100) - - 0Other current assets 107,284 115,541 (7) 4,593 4,308 7

Total current assets 2,318,186 2,466,643 (6) 3,924,779 4,548,276 (14)

Non-current AssetsInvestments in subsidiaries - - 0 1,050,555 1,000,605 5Investments in associated companies 158,793 149,039 7 - - 0Investments in joint ventures 21,736 21,374 2 - - 0Available-for-sale financial asset - 83 (100) - - 0Property, plant and equipment 6,103,156 6,097,508 0 11,511 973,999 (99)Deferred charges 5,716 5,765 (1) 5,715 5,267 9Intangible assets 32,252 31,245 3 2,340 2,381 (2)Land use rights 831 855 (3) - - 0Goodwill arising on consolidation 158,068 158,663 (0) - - 0Deferred income tax assets 34,068 33,437 2 - - 0Derivative financial instruments 10,692 13,340 (20) 10,692 13,340 (20)Other non-current assets 61,968 51,083 21 101 177 (43)

Total non-current assets 6,587,280 6,562,392 0 1,080,914 1,995,769 (46)

TOTAL ASSETS 8,905,466 9,029,035 (1) 5,005,693 6,544,045 (24)

LIABILITIESCurrent Liabilities

Trade and other payables 1,288,558 1,252,421 3 75,811 1,222,566 (94)Current income tax liabilities 140,010 165,409 (15) 2,298 2,202 4Borrowings 411,434 599,119 (31) 100,000 50,000 100Provisions 39,375 43,528 (10) 1,802 2,138 (16)Deferred income 6,738 7,670 (12) - - 0Derivative financial instruments 10,836 11,625 (7) 1,462 8,442 (83)

Other current liabilities 3 238,532 232,195 3 - - 0

Total current liabilities 2,135,483 2,311,967 (8) 181,373 1,285,348 (86)

Non-current LiabilitiesBorrowings 4,530,838 4,266,827 6 1,783,074 2,179,969 (18)Provisions 180,766 171,977 5 - - 0Deferred income 1,297 6,016 (78) - - 0Deferred income tax liabilities 5,956 6,980 (15) 606 607 (0)Derivative financial instruments 82,337 65,168 26 56,659 52,705 8Other non-current liabilities 29,008 69,289 (58) - - 0

Total non-current liabilities 4,830,202 4,586,257 5 1,840,339 2,233,281 (18)

TOTAL LIABILITIES 6,965,685 6,898,224 1 2,021,712 3,518,629 (43)

NET ASSETS 1,939,781 2,130,811 (9) 2,983,981 3,025,416 (1)

EQUITYShare capital 1,834,060 1,830,222 0 1,834,060 1,830,222 0Treasury shares (5,216) (5,216) 0 (5,216) (5,216) 0

1,828,844 1,825,006 0 1,828,844 1,825,006 0Shares held by employee benefit trust (5,729) (6,146) (7) - - 0Treasury shares reserve (1,195) (1,195) 0 (1,195) (1,195) 0Retained earnings 113,827 288,733 (61) 1,130,959 1,168,368 (3)Statutory and other reserves (51,894) (29,295) 77 25,373 33,237 (24)Capital and reserves attributable to owners of the Company 1,883,853 2,077,103 (9) 2,983,981 3,025,416 (1)Non-controlling interest 55,928 53,708 4 - - 0

TOTAL EQUITY 1,939,781 2,130,811 (9) 2,983,981 3,025,416 (1)

Net current assets 182,703 154,676 18 3,743,406 3,262,928 15

2 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.3 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 19 September 2014 borrowings borrowings liabilities Total

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

Amount repayable on or before 18 September 2015, or on demand 197,580 203,130 10,724 411,434 Amount repayable on or before: 16 September 2016 217,284 483,532 11,193 712,009 22 September 2017 226,028 441,696 12,357 680,081 21 September 2018 212,878 100,000 12,236 325,114 20 September 2019 265,053 76,947 12,806 354,806 Thereafter 1,455,344 780,585 222,899 2,458,828

2,574,167 2,085,890 282,215 4,942,272

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 19 September 2014 Vessels Containers Terminals Chassis Others 4 TotalUS$'000 US$'000 US$'000 US$'000 US$'000 US$'000

Amount repayable for the remainder of FY 2014 106,771 16,289 7,637 382 13,852 144,931 Amount repayable in:

FY 2015 263,896 51,373 67,315 558 50,726 433,868 FY 2016 159,032 15,147 57,330 - 35,371 266,880 FY 2017 123,442 6,806 57,465 - 21,198 208,911 FY 2018 116,626 5,276 49,056 - 12,289 183,247

Thereafter 325,367 9,083 370,699 - 20,191 725,340

1,095,134 103,974 609,502 940 153,627 1,963,177

As at 27 December 2013 Vessels Containers Terminals Chassis Others 4 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

4 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

YTD 2014 YTD 2013 Q3 2014 Q3 2013US$'000 US$'000 US$'000 US$'000

Cash Flows from Operating Activities(Loss)/Profit before income tax (152,662) 103,146 (14,222) 29,453 Adjustments for :Depreciation and amortisation 283,576 228,016 92,946 76,664 Fair value loss/(gain) on financial instruments 8,005 4,463 (561) 3,743 Deferred charge expense 1,940 5,124 599 1,344

Realised foreign exchange gain arising from repayment of Singapore-dollar loan - (33,879) - (33,879) Net interest expense 89,615 27,964 32,516 18,066 Interest income (3,981) (3,904) (1,428) (1,285) Share-based compensation costs 2,472 2,875 1,611 1,240 Net write-off of inventories 315 7 276 21 Fair value (gain)/loss on shares held by employee benefit trust (602) 19 116 303 Net (profit)/loss on disposal of property, plant and equipment (1,876) (7,189) (1,238) 1,730 Net (profit)/loss on disposal of assets classified as held-for-sale (2,737) (198,051) - 634

Net (profit)/loss on disposal of other assets (240) 193 (240) 156 Net profit on disposal of subsidiaries - (17) - - Gain on re-measurement of previously held interest in joint venture - (441) - - Dividend income from other investment (670) - - - Impairment loss on assets classified as held-for-sale - 5,303 - - Net provision for/(write-back of) impairment of assets 4,471 (11) 3,851 - Net provision for liabilities 36,153 12,179 23,959 2,907 Share of results of associated companies (5,857) (7,355) (1,242) (2,379) Share of results of joint ventures (1,229) (17) (782) (89) Unrealised currency translation (gain)/loss (8,372) (8,446) 424 (418) Operating cash flow before working capital changes 248,321 129,979 136,585 98,211

Changes in operating assets and liabilitiesReceivables and other assets (73,504) 58,875 (68,329) 84,707 Inventories 21,593 8,006 8,872 (5,777) Payables (12,533) (31,215) 49,709 (37,801) Provisions (28,592) (13,081) (15,146) (1,393) Cash generated from operations 155,285 152,564 111,691 137,947 Net interest paid (73,996) (20,208) (19,902) (14,530) Net income tax paid (42,760) (41,029) (12,600) (12,333) Net cash inflow from operating activities 38,529 91,327 79,189 111,084

Cash Flows from Investing ActivitiesAcquisition of subsidiaries, net of cash acquired - 2,339 - - Acquisition of net identifiable assets (6,151) - (6,151) - Investment in associated company (13,715) (13,570) - (8,859) Proceeds from loans receivables 66 28 16 7 Dividends received from associated companies 1,365 - 1,365 - Dividends received from joint venture 654 - 629 - Dividends received from other investment 670 - - - Purchase of property, plant and equipment (314,189) (1,106,747) (29,828) (343,753)

Purchase of available-for-sale financial assets (8,192) - (8,192) - Purchase of intangible assets (3,371) (1,549) (747) (456) Proceeds from disposal of subsidiaries, net of cash disposed of - 4 - - Proceeds from disposal of assets classified as held-for-sale 15,034 358,246 - 26,412 Proceeds from disposal of property, plant and equipment 35,147 65,866 22,845 641 Proceeds from disposal of other assets 16,224 193 13,338 - Net cash outflow from investing activities (276,458) (695,190) (6,725) (326,008)

Cash Flows from Financing ActivitiesProceeds from borrowings 3,356,631 4,243,689 814,809 1,194,037 Net cash inflow/(outflow) contributed by employee benefit trust 320 (328) 529 (86)

Dividends paid to non-controlling interest (2,204) (2,439) (329) - Proceeds from issue of new ordinary shares - 320 - 40 Repayment of borrowings (3,287,090) (3,677,139) (897,627) (1,345,693) Payment of costs incurred in connection with long term financing (1,887) (1,049) (16) (37) Net cash inflow/(outflow) from financing activities 65,770 563,054 (82,634) (151,739)

Net decrease in cash and cash equivalents (172,159) (40,809) (10,170) (366,663) Cash and cash equivalents at beginning of financial period 980,993 896,978 819,004 1,222,832 Cash and cash equivalents at end of financial period 808,834 856,169 808,834 856,169

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 Dividends to non-controlling interest - - - - - - (3,750) (3,750) Employee equity compensation schemes: - value of employee services - - - - - 861 - 861 - new shares issued 3,838 - - - - (3,838) - - Purchase of shares by employee benefit trust - - (50) - - - - (50) Share of statutory reserves of associated company - - - - - 41 - 41 Total comprehensive income for the financial period - - - - (151,677) (13,647) 4,559 (160,765)

Balance at 27 June 2014 1,834,060 (5,216) (6,196) (1,195) 137,056 (45,878) 54,517 1,967,148

Dividends to non-controlling interest - - - - - - (329) (329) Employee equity compensation schemes: - value of employee services - - - - - 1,611 - 1,611 Sale of shares by employee benefit trust - - 467 - - - - 467 Share of statutory reserves of associated company - - - - - 17 - 17 Total comprehensive income for the financial period - - - - (23,093) (7,780) 1,740 (29,133) Transfer from retained earnings to statutory and other reserves - - - - (136) 136 - -

Balance at 19 September 2014 1,834,060 (5,216) (5,729) (1,195) 113,827 (51,894) 55,928 1,939,781

Capital and reserves attributable to owners of the Company

Group

Page 4

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

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 - - - - - - (2,439) (2,439) Employee equity compensation schemes: - value of employee services - - - - - 1,635 - 1,635 - new shares issued 3,141 - - - - (2,861) - 280 Purchase of shares by employee benefit trust - - (396) - - - - (396) Acquisition of subsidiaries - - - - - - 1,041 1,041 Disposal of subsidiaries - - - - - 3 3 Share of other changes in equity of associated company - - - - - (274) - (274) Share of statutory reserves of associated company - - - - - 6 - 6 Total comprehensive income for the financial period - - - - 40,893 (14,743) 1,366 27,516 Transfer from retained earnings to statutory and other reserves - - - - (3,302) 3,302 - -

Balance at 28 June 2013 1,829,864 (5,216) (5,716) (1,195) 410,624 (61,541) 53,660 2,220,480

Employee equity compensation schemes: - value of employee services - - - - - 1,240 - 1,240 - new shares issued 49 - - - - (9) - 40 Purchase of shares by employee benefit trust - - (232) - - - - (232) Share of statutory reserves of associated company - - - - - 24 - 24 Total comprehensive income for the financial period - - - - 19,990 (15,402) 1,085 5,673

Balance at 20 September 2013 1,829,913 (5,216) (5,948) (1,195) 430,614 (75,688) 54,745 2,227,225

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 - - - - 861 861 - new shares issued 3,838 - - - (3,838) - Total comprehensive income for the financial period - - - (24,541) (6,079) (30,620)

Balance at 27 June 2014 1,834,060 (5,216) (1,195) 1,143,827 24,181 2,995,657

Employee equity compensation schemes: - value of employee services - - - - 1,611 1,611 Total comprehensive income for the financial period - - - (12,868) (419) (13,287)

Balance at 19 September 2014 1,834,060 (5,216) (1,195) 1,130,959 25,373 2,983,981

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 - - - - 1,635 1,635 - new shares issued 3,141 - - - (2,861) 280 Total comprehensive income for the financial period - - - 164,943 (51) 164,892

Balance at 28 June 2013 1,829,864 (5,216) (1,195) 1,184,681 27,309 3,035,443

Employee equity compensation schemes: - value of employee services - - - - 1,240 1,240 - new shares issued 49 - - - (9) 40 Total comprehensive income for the financial period - - - (15,492) 5,875 (9,617)

Balance at 20 September 2013 1,829,913 (5,216) (1,195) 1,169,189 34,415 3,027,106

Capital and reserves attributable to owners of the Company

Page 5

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

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

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current period.

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

The preparation of the third 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 19 September 2014 andthe reported amounts of revenue and expenses during the financial period from 28 December 2013 to 19 September 2014. Although these estimates are based on management’s best knowledge of current eventsand actions, actual results may ultimately differ from those estimates.

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 December 2013.

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 FRS 36 : Recoverable Amount Disclosures for Non-financial Assets (Effective for annual periods beginning on or after 1 January 2014)

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 audited financialstatements as at 27 December 2013.

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 Company whichmay render the interim financial information for the third quarter ended 19 September 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 31 October 2014

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"). In May 2014, the IRS issued a Revenue Agent Report ("RAR") with certain adjustments. APL Limited disagrees with the IRS's adjustments and consequently filed its protest letter on 12 June 2014, requesting the matter be referred to the IRS Office of Appeals. The Group is not able to determine with certainty the ultimate outcome of the IRS eventual assessment. As of end of Quarter 3, 2014, based on available facts and information, the Group believes that it has provided adequate provisions for the open matters referred to in the RAR.

Issued and paid up capitalAs at 27 June 2014, the Company's issued and paid-up capital (including treasury shares) comprised 2,595,185,542 ordinary shares. The Company's issued and paid-up capital (excluding treasury shares) comprised 2,593,458,825 ordinary shares.

During the 3 months ended 19 September 2014, no ordinary shares were issued by the Company.

As at 19 September 2014, the Company's issued and paid-up capital (including treasury shares) comprised 2,595,185,542 ordinary shares. The Company's issued and paid-up capital (excluding treasury shares) comprised 2,593,458,825 (27 December 2013: 2,590,031,729) ordinary shares.

Share optionsAs at 27 June 2014, there were 35,074,763 outstanding share options to subscribe for unissued ordinary shares exercisable at any time during the exercise periods under the NOL Share Option Plan ("NOL SOP").

During the 3 months ended 19 September 2014, 43,665 share options were cancelled.

As at 19 September 2014, share options to subscribe for 35,031,098 (20 September 2013: 36,550,492) ordinary shares remain outstanding under the NOL SOP.

Restricted sharesAs at 27 June 2014, there were 9,027,265 outstanding restricted shares under the NOL Restricted Share Plan 2010 ("NOL RSP 2010").

During the 3 months ended 19 September 2014, 169,668 restricted shares were cancelled .

As at 19 September 2014, 8,857,597 (20 September 2013: 6,364,093) restricted shares remain outstanding under the NOL RSP 2010.

Performance sharesAs at 27 June 2014, there were 7,943,363 outstanding performance shares under the NOL PSP 2010.

During the 3 months ended 19 September 2014, 155,667 performance shares were cancelled.

As at 19 September 2014, 7,787,696 (20 September 2013: 6,226,696) performance shares remain outstanding under the NOL PSP 2010.

Treasury sharesAs at 27 June 2014, 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 19 September 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 19 September 2014, there were 1,726,717 (20 September 2013: 1,726,717) treasury shares remaining that have not been re-issued.

Page 6

9.YTD 2014 YTD 2013 Q3 2014 Q3 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 (6.76 US cts) 2.36 US cts (0.89 US cts) 0.77 US cts

b) On a fully diluted basis

(detailing any adjustments made to the earnings) (6.76 US cts) 2.35 US cts (0.89 US cts) 0.77 US cts

10. Net Asset Value

19 Sep 2014 27 Dec 2013 Inc / (Dec) 19 Sep 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 0.73 0.80 (8.75) 1.15 1.17 (1.71)

11. Review of the Performance of the Group

YTD 2014 YTD 2013 Q3 2014 Q3 2013US$'m US$'m US$'m US$'m

(a) Revenue

Liner 5,247 5,407 1,680 1,712

Logistics 1,201 1,152 399 371

Elimination (59) (62) (19) (21)

Total 6,389 6,497 2,060 2,062

(b) Core EBIT 5

Liner (106) (130) 6 3

Logistics 47 45 15 19

Total (59) (85) 21 22

5 Earnings before Net Finance, Tax and Exceptional (Non-Recurring) Items.

Group Company

Income Statement:

YTD 2014 vs YTD 2013NOL Group achieved revenue of US$6.39 billion (YTD 2013: US$6.50 billion), a decrease of US$0.11 billion. This was mainly due to decrease in Liner revenue from lower freight rates and volume.

The Group's cost of sales decreased by US$0.13 billion or 2% year-on-year (YoY) to US$5.91 billion mainly due to operational cost efficiencies.

Other miscellaneous gains decreased by US$200 million or 92% YoY to US$18 million mainly due to disposal of NOL building in YTD 2013.

Finance expenses increased by US$83 million or 488% YoY to US$100 million mainly due to realised foreign exchange gain arising from repayment of Singapore-dollar loan to the Company by a subsidiary whose functional currency is Singapore dollar in YTD 2013, realised gains from financial hedging instruments in YTD 2013, and higher interest expense from higher average loan balances and interest rates.

Despite the Group making losses, tax expense was incurred mainly due to certain entities in the Group generating tax assessable income in the jurisdictions in which they operate. Tax expense decreased US$23 million or 60% YoY to US$16 million mainly due to write-back of provision relating to prior years.

The Group recorded net loss attributable to owners of the Company of US$175 million in YTD 2014 compared to net profit of US$61 million in YTD 2013 mainly due to one time gain from disposal of NOL building in YTD 2013.

Q3 2014 vs Q3 2013NOL Group achieved revenue of US$2.06 billion (Q3 2013: US$2.06 billion), unchanged YoY.

The Group's cost of sales decreased by US$0.02 billion or 1% YoY to US$1.85 billion mainly due to operational cost efficiencies.

Finance expenses increased by US$42 million mainly due to realised foreign exchange gain arising from repayment of Singapore-dollar loan to the Company by a subsidiary whose functional currencyis Singapore dollar in Q3 2013.

Despite the Group making losses, tax expense was incurred mainly due to certain entities in the Group generating tax assessable income in the jurisdictions in which they operate.

The Group recorded net loss attributable to owners of the Company of US$23 million in Q3 2014 compared to net profit of US$20 million in Q3 2013 mainly due to decrease in Liner revenue from lower freight rates and volume.

Balance Sheet:NOL Group's total assets decreased by US$124 million from US$9.03 billion as at 27 December 2013 to US$8.91 billion as at 19 September 2014. The decrease in total assets was mainly due todecrease in cash and cash equivalents. Please refer to the explanation below for the decrease in cash and cash equivalents.

The Group's total liabilities increased by US$67 million from US$6.90 billion as at 27 December 2013 to US$6.97 billion as at 19 September 2014. The increase in total liabilities was mainly due toincrease in borrowings [see Note 1(b)(ii)] during YTD 2014.

The Group's total equity decreased by US$191 million from US$2.13 billion as at 27 December 2013 to US$1.94 billion as at 19 September 2014 mainly due to net loss incurred during YTD 2014.

Cashflow:NOL Group's cash and cash equivalents decreased by US$172 million from US$0.98 billion as at 27 December 2013 to US$0.81 billion as at 19 September 2014 mainly due to net cash outflow frominvesting activities of US$276 million, partially offset by net cash inflow from financing activities of US$66 million and net cash inflow from operating activities of US$39 million. Net cash outflow frominvesting activities was mainly due to payments made for previously ordered new vessels. Net cash inflow from financing activities was mainly due to net proceeds from borrowings.

Page 7

(c) Analysis by Business Units

(i) Liner

LINER Q3 RESULTS 2014 and 2013Unaudited

YTD 2014 YTD 2013 Q3 2014 Q3 2013

Load Factors %

Transpacific and Asia-Latin America/Mexico Eastbound 91% 88% 90% 88%Intra-Asia Westbound 98% 96% 99% 94%Asia-Europe Westbound 96% 91% 95% 93%Transatlantic Westbound 89% 82% 83% 100%Headhaul 94% 91% 93% 91%

Volume ('000 FEU)Transpacific 610 620 192 201 Intra-Asia 918 942 282 282 Asia-Europe 325 310 105 100 Latin America 138 147 42 47 Transatlantic 102 127 25 39

Total Volume 6 2,093 2,146 646 669

Average Revenue/FEU (US$/FEU)Transpacific 3,345 3,478 3,393 3,506 Intra-Asia 1,363 1,412 1,414 1,348 Asia-Europe 2,428 2,331 2,444 2,428 Latin America 3,168 3,424 3,120 3,211 Transatlantic 2,785 2,695 2,974 2,794

Total 2,294 2,355 2,343 2,372

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

(ii) Logistics

LOGISTICS Q3 RESULTS 2014 and 2013UnauditedUS$ millions

YTD 2014 YTD 2013 Q3 2014 Q3 2013

BY REGION

Revenue

Americas 743 719 240 226

Europe 125 114 45 41

Asia/Middle East 333 319 114 104

Total Revenue 1,201 1,152 399 371

YTD 2014 vs YTD 2013Liner achieved YTD 2014 revenue of US$5.2 billion, a year-on-year (YoY) decrease of 3% mainly due to lower freight rates and volume.

Volume decreased by 2%YoY mainly due to lower volume in the Intra-Asia and Transatlantic trade lanes.

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

Cost of sales per FEU decreased by 1% YoY mainly due to operational cost efficiencies.

Weaker freight rates, mainly in the Transpacific, Intra-Asia and Latin America trade lanes, lowered average revenue per FEU to US$2,294 or 3% lower YoY.

As a result of cost & operational efficiencies, Liner reduced its Core EBIT loss by 18% YoY to US$106 million in YTD 2014.

Q3 2014 vs Q3 2013Liner achieved Q3 2014 revenue of US$1.7 billion, a year-on-year (YoY) decrease of 2% mainly due to lower freight rates and volume.

Volume decreased by 3%YoY mainly due to lower volume in the Transpacific, Latin America and Transatlantic trade lanes.

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

Cost of sales per FEU increased by 1% YoY mainly due to a spike in North America operating costs.

Average revenue per FEU was marginally lower YoY at US$2,343.

As a result of cost & operational efficiencies, Liner increased its Core EBIT by 100% YoY to US$6 million in Q3 2014.

YTD 2014 vs YTD 2013Logistics achieved YTD 2014 revenue of US$1.2 billion, increasing 4% YoY from revenue growth across all regions.

Core EBIT of US$47 million for YTD 2014, a 4% increase YoY mainly due to business growth and cost discipline.

Q3 2014 vs Q3 2013Logistics achieved Q3 2014 revenue of US$399 million, increasing 8% YoY from revenue growth across all regions.

Logistics achieved Core EBIT of US$15 million for Q3 2014, a 21% decrease YoY.

Page 8

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

YTD 2014 YTD 2013 Q3 2014 Q3 2013

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

Transactions for the Purchase of Goods and Services

PSA Corporation Limited and its associates 157,563 155,092 46,492 51,526

Singapore Telecommunications Limited and its associates 223 208 78 69

Certis CISCO Security Pte. Ltd 92 158 1 3

Transactions for the Sale of Goods and Services

Olam International Limited 1,313 - 1,313 -

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 31 October 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 are uncertain. Persistent oversupply of shipping capacity continues to negatively impact liner freight rates. Nonetheless, the Group's cost management and operational efficiency program remains on-track. The Group aims to continue to improve its operating performance.

Page 9

FOR IMMEDIATE RELEASE

NOL reduces year-to-date Core EBIT loss Group’s cost and efficiency gains partly offset by congestion in Southern California

SINGAPORE, 31 October 2014 – NOL Group today reported a third quarter 2014 net loss of

US$23 million. Year-to-date, the Group reported Core EBIT (Earnings Before Interest, Taxes

and Non-Recurring Items) loss of US$59 million, a 31% reduction from the same period last

year.

Singapore-based NOL also said that its cost management and efficiency drive has delivered

US$290 million of cost savings year-to-date. The savings were primarily achieved through a

more efficient fleet and network optimization. These savings were largely offset by lower rates,

lower volumes and increased costs from Southern California port congestion.

“Our focus on increasing operational efficiencies remains on track,” said NOL Group CEO Ng

Yat Chung. “However, our liner business faced tough operating conditions in the second and

third quarters due to severe port congestion in Southern California, and this has negatively

impacted our financial performance.”

FINANCIAL PERFORMANCE

YTD14 YTD13Change %

Better/(Worse)

3Q14

3Q13

Change %

Better/(Worse)

Revenue (US$m) 6,389 6,497 (2) 2,060 2,062 (0)

Core EBIT (US$m) (59) (85) 31 21 22 (5)

Net (loss)/profit (US$m) (175) 611 n.m. (23) 20 n.m.

n.m. not meaningful

1 YTD13 results includes NRI of US$200m gain from sale of NOL headquarter building.

BUSINESS SEGMENTS

APL, NOL’s container shipping business, reported third quarter 2014 Core EBIT of US$6

million, up from US$3 million in the same period last year. APL registered lower revenue for

the quarter at US$1.7 billion, a year-on-year dip of 2% due to freight rate pressures and lower

cargo volumes. APL said volumes were partly impacted by port congestion issues in Southern

California, which has also caused a significant increase in operating costs.

“Our unwavering focus on reducing fixed costs continues to show results,” said APL President

Kenneth Glenn. “Unfortunately, the industry-wide port congestion issues in Southern

California have adversely impacted our performance. Given APL’s significant business

presence in Southern California, we are working simultaneously on several fronts to urgently

address these issues. This includes realigning our network to facilitate smooth cargo flow

through the US West Coast, and working with our partners on equipment and productivity

challenges.”

NOL’s supply chain management business, APL Logistics, recorded third quarter 2014

revenue of US$399 million, an increase of 8% from a year ago. It recorded third quarter Core

EBIT of US$15 million.

“APL Logistics continued its steady performance year-on-year as a result of growth in key

emerging markets,” said APL Logistics President Beat Simon. “We remain focused on growing

our business in key industry verticals and high-growth markets.”

APL Logistics’ positive performance was driven by broad-based and steady demand growth

across all markets, particularly in the Asia-Middle East region. Its growth strategy is on track

as it focuses on its core verticals: Auto, Consumer, Industrials and Retail.

2014 YEAR-TO-DATE (YTD) OPERATING PERFORMANCE

Liner Shipping

YTD14 YTD13 Change %

Better/(Worse)

Revenue (US$m) 5,247 5,407 (3)

Core EBIT (US$m) (106) (130) 18

Average Revenue/FEU (US$) 2,294 2,355 (3)

Volume (‘000 FEU) 2,093 2,146 (2)

Logistics

YTD14 YTD13 Change %

Better/(Worse)

Revenue (US$m) 1,201 1,152 4

Core EBIT (US$m) 47 45 4

Core EBIT margin (%) 3.9 3.9 -

3Q14 OPERATING PERFORMANCE

Liner Shipping

3Q14 3Q13 Change %

Better/(Worse)2Q14

Change %

Better/(Worse)

Revenue (US$m) 1,680 1,712 (2) 1,689 (1)

Core EBIT (US$m) 6 3 100 (29) n.m.

Average Revenue/FEU (US$) 2,343 2,372 (1) 2,320 1

Volume (‘000 FEU) 646 669 (3) 662 (2)

n.m. not meaningful

Logistics

3Q14 3Q13 Change %

Better/(Worse)2Q14

Change %

Better/(Worse)

Revenue (US$m) 399 371 8 379 5

Core EBIT (US$m) 15 19 (21) 14 7

Core EBIT Margin (%) 3.8 5.1 - 3.7 -

Media enquiries Investor enquiries Pamela Pung Au Kah Soon Telephone: (65) 6371 7959 Telephone: (65) 6371 2597 Email: [email protected] Email: [email protected] Monique Mathieu Telephone: (65) 6371 5037 Email: [email protected] 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.

YTD14 & 3Q 2014 Performance Review31 October 2014

Forward Looking StatementsThe 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.

1. YTD14 & 3Q 2014 Results Highlights

| 31 October 2014 | YTD14 & 3Q 2014 Performance Review

NOL YTD 2014 Group Results Highlights

Logistics registered broad-based revenue growth

Liner cost savings partially offset by port congestion

Group Core EBIT loss reduced by 31% • Group Core EBIT loss reduced 31% to US$59m• Group cost savings program on track; achieved US$290m• Liner reduced losses despite severe congestion in Southern California• Logistics continued to deliver profitable growth

• Cost savings in 3Q14 raised Core EBIT to US$6m• YTD14 Core EBIT loss reduced 18% YoY to US$106m• High exposure to Southern California port congestion negatively

impacted operating costs and volumes

• Growth in all markets drives revenue up 4% YoY to US$1.2b• Core EBIT of US$47m, up 4% YoY


Group Core EBIT Trend


Cost & efficiency program nets US$290m savings

YTD14 Cost Savings Categories


Group CommentaryGlobal economic prospects are uncertain. Persistent oversupply of shippingcapacity continues to negatively impact liner freight rates. Nonetheless, theGroup’s cost management and operational efficiency program remains on-track.The Group aims to continue to improve its operating performance.

2. YTD14 & 3Q 2014 Financial Performance


Group Financial HighlightsYTD14 revenue down on lower Liner revenue

(US$m) 3Q14 3Q13 % ▲ Better/ (Worse) YTD14 YTD13 % ▲ Better/

(Worse)

Liner 1,680 1,712 (2) 5,247 5,407 (3)Logistics 399 371 8 1,201 1,152 4Elimination (19) (21) 10 (59) (62) 5Total 2,060 2,062 - 6,389 6,497 (2)

Revenue2%


Group Financial HighlightsCost and efficiency focus delivered improved Core EBITDA


(Worse)

Liner 96 77 25 169 89 90Logistics 18 22 (18) 56 54 4Total 114 99 15 225 143 57

Core EBITDA

15%

57%


Group Financial HighlightsYTD14 Core EBIT loss reduced by 31% to US$59m


(Worse)

Liner 6 3 100 (106) (130) 18Logistics 15 19 (21) 47 45 4Total 21 22 (5) (59) (85) 31

Core EBIT5%

31%


Group Financial HighlightsYTD14 net results declined mainly due to 2013 one-off gains

Net profit/(loss)

YTD13 includedUS$200m building

sale gain


Group Balance Sheet Highlights

US$m 19 Sep 14 27 Dec 13

Total Assets 8,905 9,029

Total Liabilities 6,966 6,898Total Equity 1,939 2,131

Total Debt 4,942 4,866

Total Cash 809 981

Net Debt 4,133 3,885

Gearing (Gross) 2.55x 2.28x

Gearing (Net) 2.13x 1.82x

NAV per share (US$) 0.73 0.80

(S$) 0.92 1.02


US$m YTD14 YTD13

Cash & Cash Equivalents – Beginning @ Q1 981 897

Cash Inflow / (Outflow)

Operating Activities 39 91

Investing/Capex Activities (277) (695)

Financing Activities 66 563

Cash & Cash Equivalents – Closing @ Q3 809 856

Group Cash Flow Highlights

Notes:1) YTD13 Investing/Capex Activities includes proceeds from NOL building sale2) Total may not sum up due to rounding


US$m YTD14 YTD13

1. Vessels 255 905

2. Equipment / Facilities 12 80

3. Drydock 10 42

4. IT 27 77

5. Others 13 4

Total 317 1,108

Group Capital Expenditure

3. Liner


Liner Results YTD 2014 Highlights

Core EBIT loss reduced 18% despite lower freight rates, volumes and South California port congestion

• Revenue eased 3% YoY to US$5.2b due to lower volume and freight rates

• Core EBIT loss reduced 18% YoY to US$106m• Cost of sales per FEU fell 1% YoY• Costs & volumes affected by Southern California port

congestion• 10 newbuilds received & 17 charter ships redelivered

YTD14, with more charter expiries in pipeline


Revenue dipped on lower freight rates and volume

2%

Revenue

• Volume partly affected by Southern California port congestion & China’s restriction on importing dry distillers’ grains

3%


Note: Figures are based on the headhaul leg of main linehaul servicesThe capacity figures take into account “winter program” initiations

Maintained high utilisation >90%

YTD13 utilization 91% YTD14 utilization 94%


3Q14 cost savings offset by lower rates, volume & congestion costs

US$m

(57)

(30)

6

3Q14 Core EBIT

Operating Costs

3

90

Cost Savings

3Q13 Core EBIT

ContributionMargin

Southern California port congestion

VolumeRates


Reduced YTD14 Core EBIT loss on cost discipline

100%

Core EBIT

18%

• YTD14 Bunker consumption -9% YoY (162k MT)• YTD14 Cost of sales/FEU down 1%


Slot costs continue to improve from newbuildsefficiency & charter expiries into FY15

2012 2013 YTD14 4Q14 2015

Charter expiries/ vessel disposals 31 14 17 2 19

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


Liner business conditions

APL

Industry

• Overcapacity to persist and put pressure on freight rates

• Southern California port congestion to persist into 4Q14

• Sustained cost & efficiency mindset• Focused on addressing Southern California port congestion:

o Working with partners on equipment and productivity issues

o Network refinements to alleviate congestion and improve service levels

4. Logistics


Logistics YTD 2014 Results Highlights

Broad-based growth across all markets; investing to build business pipeline

• Revenue US$1.2b, up 4% YoY

• Core EBIT of US$47m, up 4% YoY

• Core EBIT margin of 3.9%

• Growth strategy on track; focused on core verticals of auto, consumer, industrials and retail


Broad-based revenue growth

8%

Revenue

• Steady demand growth across all markets

4%


28% (Asia/Middle East)

62% (Americas)

10% (Europe)

319

719

114

YTD13

1,152

APL Logistics Revenue Breakdown by Region

YTD14

62% (Americas)

10% (Europe)

333

743

125

28% (Asia/Middle East)

1,201

(US$m) (US$m)


YTD14 Core EBIT up 4%

4%

Note: 1) 3Q14 & YTD14 results included unrealised forex impact of negative US$3m & positive US$1m respectively

Core EBIT1

21%

3Q14 Core EBIT declined due to stronger US$ and investments to grow business


Revenue and Core EBIT Margin Trend


APL Logistics’ growth strategy on track

• Growth focus on core verticals of auto, consumer, industrials and retail

• Invest in and expand sales capability

• Upgrade operational platform to support growth

• Build M&A pipeline

Appendix


Group Financial Highlights

US$m YTD14 YTD13% ▲

Better/ (Worse)

3Q14 3Q13% ▲Better/

(Worse)

Revenue 6,389 6,497 (2) 2,060 2,062 -

Core EBITDA 225 143 57 114 99 15

Core EBIT (before non-recurring items)

(59) (85) 31 21 22 (5)

Non-recurring items (5) 198 n.m. (4) (2) (100)

EBIT (64) 113 n.m. 17 20 (15)

Net (loss)/profit to owners of the company 1

(175) 61 n.m. (23) 20 n.m.

Net (loss)/profit to owners of the company ex-NRI

(170) (137) (24) (19) 22 n.m.

Note:1) YTD13 results includes NRI of US$200m gain from sale of NOL building


Financial Highlights by Business Segment

Revenue (US$m) YTD14 YTD13% ▲

Better/ (Worse)

3Q14 3Q13% ▲

Better/ (Worse)

Liner 5,247 5,407 (3) 1,680 1,712 (2)

Logistics 1,201 1,152 4 399 371 8

Elimination (59) (62) 5 (19) (21) 10

Total Revenue 6,389 6,497 (2) 2,060 2,062 -

Core EBIT (US$m) YTD14 YTD13% ▲

Better/ (Worse)

3Q14 3Q13% ▲

Better/ (Worse)

Liner (106) (130) 18 6 3 100

Logistics 47 45 4 15 19 (21)

Total Core EBIT (59) (85) 31 21 22 (5)


Liner Results Summary

US$m YTD14 YTD13% ▲Better/

(Worse)3Q14 3Q13

% ▲Better/

(Worse)

Revenue 5,247 5,407 (3) 1,680 1,712 (2)

Core EBITDA 169 89 90 96 77 25

Core EBIT (106) (130) 18 6 3 100

EBIT1 (110) 40 n.m. 2 1 100

Core EBIT margin (%) (2.0) (2.4) 0.4 0.2

Note:1) YTD13 results includes NRI of US$172m, mainly from gain from sale of NOL building


Volume (‘000 FEUs) YTD14 YTD13 % ▲ 3Q14 3Q13 % ▲Transpacific 610 620 (2) 192 201 (4)Intra-Asia 918 942 (3) 282 282 -Asia-Europe 325 310 5 105 100 5Latin America 138 147 (6) 42 47 (11)Transatlantic 102 127 (20) 25 39 (36)Total 2,093 2,146 (2) 646 669 (3)

Average Revenue/FEU (US$) YTD14 YTD13 % ▲ 3Q14 3Q13 % ▲Transpacific 3,345 3,478 (4) 3,393 3,506 (3)Intra-Asia 1,363 1,412 (3) 1,414 1,348 5Asia-Europe 2,428 2,331 4 2,444 2,428 1Latin America 3,168 3,424 (7) 3,120 3,211 (3)Transatlantic 2,785 2,695 3 2,974 2,794 6Total 2,294 2,355 (3) 2,343 2,372 (1)

Operational Update

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


Logistics Results Highlights

US$m YTD14 YTD13% ▲

Better/ (Worse)

3Q14 3Q13% ▲Better/

(Worse)

Revenue 1,201 1,152 4 399 371 8

Core EBITDA 56 54 4 18 22 (18)

Core EBIT 47 45 4 15 19 (21)

EBIT 1 46 73 (37) 15 19 (21)

Core EBIT margin (%) 3.9 3.9 3.8 5.1

Note:1) YTD13 results includes NRI of US$28m, mainly from gain from sale of NOL building


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 PresentationThank You

Neptune Orient Lines Ltd9 North Buona Vista Drive, #14-01 Metropolis Tower 1Singapore 138588Tel: (65) 6278 9000Fax: (65) 6278 4900Company registration number : 196800632DWebsite: www.nol.com.sg

apps?a=cow corpannouncement content&b=an...investments in subsidiaries - - 0 1,050,555 1,000,605...

Documents