One of Europe’s leading ferry operatorsOne of Europe’s leading ferry operators

Serving the transport industry for 175 years Serving the transport industry for 175 years

8 routes (Channel, North Sea & Irish Sea)8 routes (Channel, North Sea & Irish Sea)

11 port operation centres11 port operation centres

7 dedicated freight booking-offices7 dedicated freight booking-offices

21 vessel fleet21 vessel fleet

Freight & multipurpose vesselsFreight & multipurpose vessels

Strategic and reliable times and servicesStrategic and reliable times and services

A customer “relationship” approachA customer “relationship” approach

Excellent operational and back-office support Excellent operational and back-office support

2011 1,9 million freight units carried2011 1,9 million freight units carried

2011 – freight revenue £300 million+2011 – freight revenue £300 million+

2011 – newest and largest ever ferry on 2011 – newest and largest ever ferry on Dover/Calais the Spirit of BritainDover/Calais the Spirit of Britain

2012 – delivery of sister ship the Spirit of 2012 – delivery of sister ship the Spirit of

FranceFrance

Over 5,000 freight customers in 15 countriesOver 5,000 freight customers in 15 countries

FREIGHT & PASSENGERSCrossing Time

90 minutes

FrequencyUp to 60 sailings per

day

Dwell Time in PortAverage 45 minutes

Fleet Spirit of Britain Spirit of France (2012) Pride of Calais Pride of Kent Pride of Canterbury Pride of Burgundy European Seaway

FREIGHT ONLYCrossing Time

8 hours

Frequency

20 sailings per week

Fleet Norstream Norqueen

P&O’s newest freight route.

Zero to 130,000 unaccompanied

freight movements per annum in less

than 4 yearsRail handling available in Zeebrugge

RouteEuropoort – HullFREIGHT & PAXDuration10 hoursFrequencyDailyFleet Pride of Hull Pride of Rotterdam

RouteZeebrugge – HullFREIGHT & PAXDuration12 hoursFrequencyDaily Fleet Pride of York Pride of Bruges

RouteZeebrugge – TeesportFREIGHT ONLYDuration16 hoursFrequency3 per weekFleet Boresong

RouteEuropoort – TeesportFREIGHT ONLYDuration16 hoursFrequency3 per weekFleet Norsky

RouteDublin –

Liverpool

Duration7 hours 30 mins

Frequency3 per day

Fleet Norbay Norbank

Endeavour

RouteCairnryan –

Larne

Duration1 hours 45 mins

Frequency7 per day

Fleet E. Highlander E. Causeway

RouteTroon – Larne

Duration2 hours

Frequency2 per day

Fleet Express

(high speed craft)

Pax and small Vans May till September

Troon

• Surplus capacity in most sectors STENA, COBELFRET, DFDS and a number of Lo Lo operators

• All operators / routes suffer from a profitability / viability problem

• Fuel regulations (Green for the sake of Green……. The Low Sulphur folly within the E.U.)

• Covert or even overt state subsidies (yesterday Sea France, DFDS on Rosyth, Brittany Ferries / LD Lines and now My Ferry Link …. how many more)

• Expansion of Direct Rail services via the TGV network / Channel Tunnel

• Mileage / Duration linked Motorway Tolls in most if not all E.U. countries. Expected UK 2015

• Possible scrapping of Marco Polo and M O S funding for new projects due to austerity pressures on all European Governments

NORTH SEA SECTOR CHALLENGES

The P&O Ferries fuel bill has risen from £90m in 2007 to £125m estimate for 2012

The low Sulphur impact on the North Sea will impact customer rates by 10% to 30% based on current estimates – assuming we can even source enough of it

We estimate 20% of all North Sea sector volumes could migrate to shorter crossings as Fuel less impact. Various University studies see 10 – 30% volume migration

Not necessarily a North Sea haulier re routing but a commodity switch via a low cost Short Sea haulier

Will it happen 2015? Will there be an exemption for older tonnage?

Retro fit of scrubber technology even if proven is not always possible

Whilst currently LNG rates are more economical that bunker fuel, demand will increase prices. Also bunkering via delivery vessels not available – could take 10 years to ensure a smooth supply?

ARMAGEDDON – mass job losses and route closures

LOW SULPHUR LEGISLATION 2015

The Short Sea Market

2,000,000

2,200,000

2,400,000

2,600,000

2,800,000

3,000,000

3,200,000

3,400,000

3,600,000

3,800,000

4,000,000

Fr8 MAT

Market growth has dropped in the last 12 months from 5% per annum to 1.4%

Growth in the main is NOT organic but migrated contracts and volumes

Growth will continue

The North Sea Market

630,000

635,000

640,000

645,000

650,000

655,000

660,000

Ann

ual M

arke

t

North Sea Freight Volume MAT

Fr8 Vol.

Very limited data available on North Sea Freight Routes, P&O and Stena Killingholme and Very limited data available on North Sea Freight Routes, P&O and Stena Killingholme and Harwich routes.Harwich routes.

The market in the North East is very different to the South East with a higher % of carryings being lift units. North Sea market is chemical, plastics, paint, steel, automotive and supermarket related .

The South East does not have the variety of exports so imports tend to be direct consumer related products –supermarket / fashion / beverages. Exports detergents, paper, steel.

Current Scottish Ro Ro market is circa 20,000 units per annum, a marketthat has seen a massive decline

We have seen an unaccompanied volume contraction in the North East region resulting in a reduced capacity offering. Some contracts are being re routed via the Short Sea or via Self Drives on the North sea.

The NE industry went through a period of prolonged shut down however the green shoots of growth are now starting to appear. There are a number of opportunities on the horizon

GROWTH IN THE NORTH EAST

THE ROLE OF RO RO ON THE NORTH SEA

Right sizing a route – single engine single screw ships with a Scrubber combined with stacking across 3 decks can compete effectively against all comers

Flexibility Frequency Capacity – Trailers / Self Drives / lift units of all types / loose cargo / new cars / maafi shipments of steel and forest products to name but a few

No milk runs and no ‘Slow Boat to China’. Customer prefer to utilise mega Port hubs within an established route network

Ability to interchange ships within a route network to reduce ship downtime and to flex capacity and frequency

Mileage savings for the unaccompanied customer – Eastern European operators do benefit from a lower cost base (salaries / fuel / overheads)

Ro Ro is here to stay - not sure in what form and on which routes at this stage