Global Ports - 2014 Interim Results Presentation

Global Ports Investments PLC
2014 Interim Results Presentation
15 September 2014

DISCLAIMER
Information contained in this presentation concerning Global Ports Investments PLC, a company organised and existing under the laws of Cyprus (the “Company”, and together with its subsidiaries and joint ventures, “Global Ports” or the “Group”), is for general information purposes only. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice. The Company relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.
Concurrently Global Ports is publishing Unaudited Selected Illustrative Combined Financial Metrics for the six-months period ended 30 June 2013 (the “Illustrative Combined Financial Metrics” or “Illustrative Combined”) of Global Ports Group, including NCC Group Limited and its consolidated subsidiaries (“NCC Group” or “NCC”), the “Enlarged Group”) following the Group’s announcement on 27 December 2013 that it had completed the acquisition of 100% of the share capital of NCC Group (the “Transaction”). For the purposes of this announcement, Global Ports is using the Illustrative Combined Financial Metrics as a comparator against the actual results of operations for the six-month period ended 30 June 2014 in respect of (i) the Group’s results and (ii) the Russian Ports segment’s results. Where relevant, for reader’s reference, actual (reported) results of operations for the six-month period ended 30 June 2013 are presented in separate columns in the tables presenting financial information.
The Illustrative Combined Financial Metrics represent information prepared based on estimates and assumptions deemed appropriate by the Group and is provided for illustrative purposes only. They do not purport to represent what the actual results of the operations or cash flows of the Group would have been had the Transaction occurred on 1 January 2013, nor are they necessarily indicative of the results or cash flows of the Group for any future periods. Because of their nature, the Illustrative Combined Financial Metrics are based on a hypothetical situation and, therefore, do not represent the actual financial position or results of the operations and cash flows of the Group.
These materials may contain forward-looking statements regarding future events or the future financial performance of the Enlarged Group. You can identify forward looking statements by terms such as “expect”, “believe”, “estimate”, “anticipate”, “intend”, “will”, “could”, “may”, or “might”, the negative of such terms or other similar expressions. These forward-looking statements include matters that are not historical facts and statements regarding the Company’s and its shareholders’ intentions, beliefs or current expectations concerning, among other things, the Enlarged Group’s results of operations, financial condition, liquidity, prospects, growth, strategies, and the industry in which the Company operates. By their nature, forward-looking statements involve risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future.
The Company cautions you that forward-looking statements are not guarantees of future performance and that the Enlarged Group’s actual results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates may differ materially from those described in or suggested by the forward-looking statements contained in these materials. In addition, even if the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the development of the industry in which the Company operates are consistent with the forward-looking statements contained in these materials, those results or developments may not be indicative of results or developments in future periods.
The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, market change in the Russian transportation industry or particularly in the ports operation segment, as well as many other risks specifically related to the Company and its operations.
These materials do not constitute an offer or an advertisement of any securities in any jurisdiction.
2
Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 35-36

REFERENCE TO ACCOUNTS AND OPERATIONAL INFORMATION
Unless stated otherwise all financial information in this presentation is extracted from the Interim Condensed Consolidated Financial Information of the Company for the six months period ended 30 June 2014 and prepared in accordance with International Financial Reporting Standards adopted by the European Union (“IFRS”) and the requirements of Cyprus Companies Law, Cap. 113.
From 1 January 2014 the Group adopted IFRS 11, ‘Joint arrangements’ which has resulted in significant changes in the accounting policies applied by the Group. Prior to 1 January 2014, the Group’s interests in jointly controlled entities (VEOS and MLT and CD groups) were accounted for by using the proportionate method of consolidation. From 1 January 2014 jointly controlled entities are accounted for using the equity method of consolidation.
The Global Ports Group’s Interim Condensed Consolidated Financial Information for the six months period ended 30 June 2014 is available at the Global Ports Group’s corporate website (www.globalports.com).
The financial information is presented in US dollars, which is also the functional currency of the Company and certain other entities in the Group. The functional currency of the Group’s operating companies for the periods under review was (a) for the Russian Ports segment, the Russian rouble, (b) for Oil Products Terminal segment and for the Finnish Ports segment, Euro.
Certain financial information which is derived from management accounts is marked in this presentation with an asterisk {*}.
In this presentation the Group has used certain non-IFRS financial information as supplemental measures of the Group’s operating performance.
Information (including non-IFRS financial measures) requiring additional explanation or defining is marked with initial capital letters and the explanations or definitions are provided at the end of this presentation.
Rounding adjustments have been made in calculating some of the financial and operational information included in this presentation. As a result, numerical figures shown as totals in some tables may not be exact arithmetic aggregations of the figures that precede them.
Market share data has been calculated using the information published by the Association of Sea Commercial Ports (“ASOP”), www.morport.com, ARGUS Nefte Transport and Drewry Financial Research Services Ltd (“Drewry”).
3

CONTENTS
4
Definitions for terms marked in this presentation with capital letters are provided in the Appendices on pages 35-36
Page
I. Global Ports at a Glance
5
II. 1H 2014: Focus on efficiency and strong pricing
6
III. Russian container market
7
IV. High potential for further containerization across key industries
8
V. Operational and commercial developments
9
VI. Financial highlights: 1H 2014
10
 Focus on operational efficiency
11
 Other segments
12
 Strong cash flow and low capex enable swift deleveraging
13
VII. Key takeaways
14
VIII. Appendices
 Enlarged Global Ports
15
 Selected operational and financial information
20
 Terminals overview
26

The #1 container terminal operator in Russia(1)
●Market leadership reinforced by acquisition of Global Port’s largest competitor, NCC Group Limited(1) at the end of 2013
Russian container market is fundamentally attractive due to low levels of containerization across industries
●Global Ports has a strong presence and available capacity in both key basins: Baltic and the Far East
High cash flow generation and low CAPEX requirements
Listed on the main market of the London Stock Exchange, free float of 20.5%(2)
●APM Terminals and N-Trans (each with 30.75% of share capital) are the core strategic shareholders
●Adherence to best-in-class corporate governance, Board of Directors with strong track record and deep understanding of the industry
GLOBAL PORTS AT A GLANCE
5
(1)Source: ASOP, based on 2013 and 1H 2014 overall Container Throughput in the Russian Federation ports without transit cargo volumes.
(2)As of 30.06.2014
BALTIC BASIN
BLACK SEA
BASIN
FAR EAST BASIN
Vostochnaya Stevedoring Company
MLT-Helsinki
MLT-Kotka
Vopak E.O.S.
Ust-Luga Container Terminal
Moby Dik
First Container Terminal
Petrolesport
Logistika-Terminal
Yanino

1H 2014: FOCUS ON EFFICIENCY AND STRONG PRICING
6
Successful commercial campaign Focus on operating improvements of the enlarged operation
●Operating cash costs(1) reduced 13%* y-o-y during 1H 14
●A number of further initiatives are being implemented Integration of NCC completed, run rate of around USD 8 million* annual cost savings secured
Integration completed, focus on operating improvements
(1)Data based on an equity method accounting of joint ventures..
(2)Recommended by the Board of Directors, subject to EGM approval to be held on 22 October 2014. Payout ratio calculated as the sum of dividends recommended divided by Net profit attributable to the owners of the company. of 1H 14
High cash flow and reduced CAPEX, focus on deleveraging
Margin expansion, Adjusted EBITDA broadly flat Adjusted EBITDA margin expanded c. 340 bps* to a record level of 66.3%* Adjusted EBITDA broadly flat at USD 190 million*
●Cost reductions mitigated the 4.7%* revenue decline Strong cash flow generation with net cash from operating activities of USD 158 million in 1H 14 CAPEX amounted to USD 13 million in 1H 14(1)
●CAPEX guidance for 2014 and next few years lowered to USD 35-45 million(1) Net debt reduced by c. USD 70 million, Net Debt / LTM Adjusted EBITDA decreased from 3.7 to 3.5 times(1) Dividend of USD 0.12* per GDR recommended (33%* dividend payout ratio)(2)
Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 35-36 Revenue per TEU(2) up 4.6%* compared to the second half of 2013 reflecting the successful 2014 commercial campaign supported by our unparalleled network of terminals

Russia World Turkey North
America
Europe
1H 2013 1H 2014 1H 2013 1H 2014
Russian container market grew by 2% in 1H 14(1)
● Declining growth since 2Q bringing YTD growth to 1%*
Laden export grew 25%* y-o-y during 1H 14(2), positively
impacted by the depreciation of the Russian rouble and
ongoing containerization of exports
Impact of ban on food imports is likely to be muted:
● Only about 2-3%* of overall Russian container volumes affected
● Containerization levels of banned cargoes were relatively low
● Volumes may recover if these imports are replaced by deep sea
deliveries which usually have higher containerization levels
No known sizeable capacity additions in the Russian market
during the next 12 months
Containerisation level remains low in Russia:
42 TEU per thousand capita(3) in 2013
RUSSIAN CONTAINER MARKET
7
Container Throughput in Russia
million TEU
Source: ASOP
(1) Source: ASOP, based on 1H 2014 overall container throughput in the Russian Federation ports without transit cargo volumes
(2) Source: ASOP, YTD data of January - August 2014.
(3) Source: Drewry; some 2013 numbers are estimated.
+25%*
+2%*
Container Throughput
Export laden
Containerization level, TEU per 1000 capita
million TEU
2.55* 2.60*
Source: Drewry; 2013 data
90 95
134 135
42
0.37* 0.47*

57%
98%
68%
99% 86% 93%
Russia Brazil Turkey US EU Global
15%
33%
60% 68% 65%
47%
53%
71%
56%
78% 80% 78%
HIGH POTENTIAL FOR FURTHER CONTAINERIZATION
ACROSS KEY INDUSTRIES1
8
Temperature or Climate Control (frozen food
and fish, perishable cargo etc.)
Chemicals & Products Foodstuffs & Beverages for human
consumption
Consumables
Plastics & rubbers
Consumer fashion, personal & household
goods
Manufactured metal & semi-manufactured
industrial consumables
Machinery parts. Components, supplies &
manufactures, n.e.s.
(1) Source: Seabury, calculated as total containerized ocean trade in tonnes divided by total trade by country/region in tonnes
(2) Selected cargo groups represent more than 50% of Russian import measured in TEU’s
(3) Selected cargo groups represent around 45% of Russian export (excluding liquids) measured in tonnes
Chemicals & Products
Containerization of imports(2) Containerization of exports(3)
34%
65%
37%
71%
51%
65%
45%
86%
37%
83% 84% 75%
4%
31% 31% 29%
47%
36%
25%
30%
19%
31% 31% 36%
8%
25% 26%
66%
34% 35%
8% 12%
67%
13%
39% 32%

1H 2013 2H 2013 FY 2013 1H 2014
OPERATIONAL AND COMMERCIAL DEVELOPMENTS
9
Revenue per TEU* (Russian Ports)(1)
million TEU
Gross container throughput*(2)
1.27* 1.23*
(1) Data for 1H 2013, 2H 2013, and FY 2013 is based on an Illustrative Combined basis, including the results of NCC Group.
(2) Global Ports standalone gross container throughput includes 100% throughput in PLP, VSC, Moby Dik, and Finnish ports, NCC Group throughput includes 100% throughput of FCT and ULCT, Illustrative combined throughput
includes throughput of Global Ports standalone and NCC Group
USD
Growth in revenue per TEU 1H 2014 vs FY 2013 due to a
successful pricing campaign supported by an unparalleled
network of container terminals in Russia
● Partially offset by continued trend in declining storage
time
Expansion of capacity at fast-growing VSC completed –
increased by 100 thousand TEU* to 650 thousand TEU*
Gross container throughput decreased 1.3%*. Active ramp-up
of ULCT (+146%*) and growth at VSC (+9%*) and the Finnish
Ports segment (+16%*) were offset by:
● High exposure to the Russian Baltic basin where market
decreased by 3%* y-o-y
● Loss of volumes in the Russian Baltic basin to low cost
competition due to “pricing over market share ” strategy
of Global Ports
Strong growth in cars (+21%*) and traditional Ro-Ro (+24%*)
0.11* 0.12*
1.37* 1.36*
Russian ports Finnish ports Total marine
container throughput
1H 2013
1H 2014
-1.3%
-2.8%
+16%
210*
199*
208*
205*
+4.6%
+1.7%

1H 2013 1H 2014
1H 2013 1H 2014
1H 2013 1H 2014
1H 2013 1H 2014
1H 2013 1H 2014
1H 2013 1H 2014
FINANCIAL HIGHLIGHTS: 1H 2014(1)
10
Revenues
reflected
volume
change
Margin
expansion
driven by
positive FX
impact and
cost control
Reduced
CAPEX,
dividend
declared
301 287
mln USD
Revenue
-4.7%
mln USD
0.4%
Adjusted EBITDA and Adjusted EBITDA margin
-44%
CAPEX
mln USD
189* 190*
23
13
62.9%* 66.3%*
Group’s revenues decreased 4.7%* to USD 287
million y-o-y largely driven by a 3%* decrease in
container volumes in the Russian Ports segment and
slight decline in revenue per TEU y-o-y
Positive FX impact and cost control measures in Russian
Ports segment led to a 13% reduction in Group’s
Operating Cash Costs
Adjusted EBITDA margin up c. 340 bps* to record 66.3%*
Adjusted EBITDA was broadly flat at USD 190 million*
as cost reductions mitigated the 4.7%* revenue decline
Cash CAPEX was USD 13 million
● CAPEX guidance for 2014 and next few years cut to
USD 35-45 million(2)
Global Ports recommended a dividend of USD 23
million* (USD 0.12* per GDR)(3)
● Payout ratio of 33%* of Net profit
319 307
65.3%* 68.1%*
0.3%
208* 209*
-43%
24
14
Global Ports Russian Ports segment,
100% basis
-3.8%
Due to mandatory adoption of IFRS 11 from January 1st 2014, the Group’s joint ventures (VEOS, MD, YLP, Kotka, Helsinki) are consolidated
using the equity method of accounting and their proportional share of net profit is reported below EBITDA (see page 17 for further details)
(1) The results for 1H 2013 are provide on Illustrative Combined basis and include the results of NCC Group.
(2) Data based on an equity method accounting of joint ventures..
(3) Recommended by the Board of Directors, subject to EGM approval. Payout ratio calculated as the sum of dividends recommended divided by Net profit attributable to the owners of the company of 1H 14.

Staff costs
Transportation expenses
Fuel, electricity and gas
Repair and maintenance of PPE
Other
FOCUS ON OPERATIONAL EFFICIENCY(1)
Further
measures to
take effect in
2H 14 and
2015
Headcount: up to 5% reduction in operating staff of
Russian Ports segment by year end
Process optimisation: NCD operations eliminated(2)
Asset disposal: sale of captive trucking business signed
Maintenance: dismiss unutilised equipment
Centralisation of procurement
11
(1) The results for 1H 2013 are based on Illustrative Combined basis including the results of NCC Group.
(2) See page 19 for further details
Operating
improvements
at the enlarged
operation
launched
Comprehensive analysis of efficient use of available
capacity launched immediately after the NCC acquisition
● Distribution of container volumes in North West and
related headcount optimisation
● Adjustments to operating processes and practices as
a result of the above
● Equipment utilization and technical asset management
Operating Cash Costs of the Russian Ports segment
decreased by 11%* during 1H 14 y-o-y (broadly flat in
Rouble terms). Inflationary pressures largely mitigated by:
● Optimisation of repairs
● Decrease in transportation expenses via
optimisation of intra-terminal movements
● Thorough control over other expenses
1H 2013 1H 2014
Operating Cash Costs of Russian Ports segment
mln USD
-12.7
-11%
97.8*
110.5*
Breakdown of Operating Cash Costs of Russian
Ports segment (1H 14)
mln USD
28.7;
29%
6.5;
7%
8.4;
9%
47.2;
48%
7.0;
7%

OTHER SEGMENTS
12
Vopak E.O.S. continues to operate in a
challenging market environment
Finnish Ports segment - growth in volumes and
Adjusted EBITDA
Throughput, mln tons
5.6*
4.1*
-28%
114
68
-40%
50*
26*
-48%
1H 2013
1H 2014
105*
1.8*
122* 11.3
12.7
2.1*
16%
12%
21%
Throughput, mln TEU Revenue, USDm Adjusted EBITDA, USDm
Revenue, USDm Adjusted EBITDA
(USDm) and Adjusted
EBITDA margin (%)
Environment remains challenging as cargo owners
prefer to handle more product in Russia
● Revenue declined 40% y-o-y due to lower volumes and
increased share of lower-revenue generating seaborne
deliveries
● Restructuring and lower volumes resulted in a 35%*
reduction in the segment’s cash costs
● Adjusted EBITDA decreased 48%* to USD 26 million*
Adverse trends continued into the 2H 14
Finnish Ports segment throughput increased 16%* supported
by volumes from new clients acquired in 2013
Revenues increased 12% resulting in strong growth at
EBITDA level (+21%*)
1H 2013
1H 2014
Due to mandatory adoption of IFRS 11 from January 1st 2014, Vopak E.O.S. and Finnish Ports segment are consolidated
using the equity method of accounting and their proportional share of net profit is reported below EBITDA (see page 17 for further details)
44.3%* 38.8%*

as at 31.12.13 as at 30.06.14
STRONG CASH FLOW AND LOW CAPEX ENABLE SWIFT
DELEVERAGING
13
Net debt to Adjusted EBITDA, interest rate Comfortable debt repayment schedule
Net cash flow from operating activities 1H 2014 annualised(2)
Cash and deposits(3) as at 30/06/14
Debt repayment schedule as at 30/06/14
315
116
88* 88*
150*
(1) Net debt to LTM Adjusted EBITDA
(2) Calculated as Net cash flow from operating activities for 6m 2014 multiplied by two.
(3) Including deposits with the maturity over 90 days
(4) Data based on an equity method accounting of joint ventures..
(5) Including cross-currency interest rate swap arrangement
Healthy net cash flow from operating activities of
USD 158 million in 1H 14
Comfortable debt repayment schedule
CAPEX guidance for the next few years lowered to
USD 35-45 million(4)
Net debt of USD 1,253 million* as of 30 June 2014, net debt to
LTM Adjusted EBITDA at 3.5 times*
● Net debt reduced by USD 70 million during 1H 14
Average interest rate of the debt portfolio decreased from 6.2%
to 5.4% % during 1H 2014
Around 100% of debt portfolio denominated in US dollars(5) as of
30.06.14 matching revenues mainly denominated in US dollars
1H 2014
annualised
Cash and
deposits
2H 2014 2015 2016 2017
198*
mln USD
1,323
1,253
3.7x 3.5x(1)
Debt repayment in 2H 2014
as at 31.12.13 as at 30.06.14
Net debt, USD million
AVG interest rate, %
6.2%
5.4%

KEY TAKEAWAYS
14
Russian market is undercontainerized Despite recent slowdown in growth rates, the Russian container market remains fundamentally attractive due to low levels of containerization across industries
Global Ports is the market leader with a proven track record
Cost control and efficiency are priorities
Strategy of solid pricing over market share
Strong FCF and focus on deleveraging Global Ports is the clear leader in the Russian container market with a proven track record and a clear strategy in place Successful commercial campaign and unparalleled network of container terminals provided for strong pricing in 1H 14
Focus on efficiency and cost control led to a 13%* decrease of Operating cash costs in 1H 14 Further measures are being implemented
Focus on FCF generation and deleveraging
●Lowered CAPEX guidance for the next few years to USD 35-45 million
●Structurally lower cost base due to efficiency improvements

15
APPENDIX #1
Enlarged Global Ports

POST TRANSACTION
CORPORATE STRUCTURE1
16
Entity Partner Share Partner Profile
Vopak E.O.S. Royal Vopak 50%
• Global market leader in independent bulk liquid storage terminals
• 79 terminals with a combined storage capacity of more than 31 million cubic
meters in 29 countries1
Moby Dik, Finnish
Ports, Yanino
Container Finance
Ltd Oy
25% in
each
• Finnish investment company with extensive experience in transportation
• Shareholder of door-to-door European container transport company
Containerships
ULCT Eurogate 20%
• One of the largest and the most reputable European container-terminal groups,
operating ten sea terminals on the North Sea, in the Mediterranean region as
well as on the Atlantic
• Handled over 14.2 million TEUs in 2013
Global Ports
VSC PLP Moby Dik
100% 100% 75%
Yanino
75%
Finnish
Ports
75%
Vopak E.O.S.
50%
9%
Polozio
Enterprises Limited
TIHL
30.75%
APM Terminals
30.75% 9%
FCT ULCT LT
100% 80% 100%
Ilibrinio
Establishment Limited
20.5%
Free Float
Source: Companies’ data.
(1) As of September 2014.

OVERVIEW OF JV ACCOUNTING IMPLEMENTATION
17
Definitions for terms marked in this presentation with capital letters provided in the Appendices at pages 35-36 100% basis consolidation in IFRS
●Adjusted EBITDA of USD 190 million Proportional share of Net Profit reported below EBITDA:
●Proportional share of net loss of USD 9 million
Previous amount of financial information on segments (100% basis) available in IFRS statement’s segment note 7
Segment on a 100% basis
●EBITDA: USD 209 million
●EBITDA: USD 26 m
●EBITDA: USD 2 m
VSC
PLP
FCT
ULCT
Moby Dik
LT
Yanino
Vopak E.O.S.
Global Ports
Russian Ports segment
Oil Products segment
Finnish Ports segment
Finnish Ports

WELL INVESTED TERMINALS IN KEY GATEWAYS
Source: Drewry, open sources, Company analysis
Note: Gross container handling capacity with respect to container terminals of the Group as at 30 June 2014
Black Sea Basin
16% of Russian market 6m 2014 throughput
Russia
•Capacity: 440 ths. TEU
NCSP
Novorossiysk
Black Sea
Turkey
NUTEP (Delo)
Baltic Sea Basin
Russia
Finnish transit
Baltic countries’ transit
Moby Dik
•Capacity: 1,000 ths. TEU
PLP
St. Petersburg Region
Estonia
Latvia
Kaliningrad Region
Baltic Sea
Lithuania
Ust-Luga
BSC (NCSP)
and Kaliningrad SCP
•Capacity: 1,250 ths. TEU
FCT
CT St-Petersburg (UCL Holding)
Far East Basin
VSC
VMTP (FESCO)
Vladivostok
Okhotsk Sea
Moscow
VSFP
Russia
China
Finland
Other terminals
18

OPTIMIZING OPERATIONS: NCD1 CASE STUDY
19
FCT layout
NCD
Empty containers dropped off by clients at NCD
FCT delivers box to berth
Loading of empty box to vessel
Empty containers dropped off by clients directly at FCT or PLP
Loading of empty box to vessel
FCT operations pre-acquisition
New process of operations after optimization NCD previous activity was eliminated, releasing land plot for other revenue uses Potential savings of more than USD 1 million per annum achieved
(1)National Container Depot

20
APPENDIX #2
Selected operational and financial information

SELECTED COMBINED OPERATIONAL INFORMATION1
21
Source: The management accounts
1H 2013
1H 2014
1H 2013
1H 2014
Gross throughput
Gross throughput
Globalports containerized cargo (thousand TEUs)
PLP
371
338
Containerized cargo (thousand TEUs)
105
122
VSC
224
243
Moby Dik
112
114
FCT
540
487
Oil Products Terminal segment
ULCT
21
51
Total Russian Ports segment
1,268
1,233
Oil products Gross Throughput (million tonnes)
5.6
4.1
Non-containerized cargo
Ro-ro (thousand units)
10
13
Cars (thousand units)
51
62
Bulk cargo (thousand tonnes)
478
429
(1)Global Ports standalone gross container throughput includes 100% throughput in PLP, VSC, and Finnish ports, NCC Group throughput includes 100% throughput of FCT and ULCT, Illustrative combined throughput includes throughput of Global Ports standalone and NCC Group. The data is on a 100% basis.
(2)Total throughput of Russian Ports excludes the throughput of Yanino which, in 1H 2013 and 1H 2014 was 31 thousand TEUs and 42 thousand TEUs respectively and the throughput of LT which, in 1H 2013 and 1H 2014 was 49 thousand TEUs and 48 thousand TEUs respectively;

SELECTED COMBINED OPERATIONAL INFORMATION (continued)
22
Source: The management accounts
1H 2014
1H 2014
Capacity (end of the period)
Russian Container Terminal Capacity (excluding Yanino and LT inland)
Annual container handling capacity (Thousand TEUs)
PLP
1,000
VSC
650
MLT Kotka
150
Moby Dik
400
MLT Helsinki
270
FCT
1,250
Total
420
ULCT
440
Total Global Ports
3,740
Yanino, inland container terminal
200
Annual general cargo capacity (Thousand tonnes)
400
Oil Products Terminal Segment
LT, inland container terminal
Storage Capacity (in thousand cbm)
1,026
200

GLOBAL PORTS INCOME STATEMENT
23
Source: Global Ports consolidated financial statements; all data is based on equity method of accounting of joint ventures
1)1H 2013 data is based on Illustrative Combined basis, including the results of NCC Group
Summary Income Statement
'000 USD
1H 2013 Reported
1H 2013 Illustrative Combined1
1H 2014 Reported
Revenue
168,767
300,568*
286,518
Cost of sales
(69,959)
(142,405)*
(123,428)
Gross profit
98,808
158,163*
163,090
Selling, general and administrative expenses
(18,312)
(26,842)*
(26,536)
Share of profit of joint ventures
6,311
6,311*
(9,081)
Other gains/(losses) - net
2,893
6,256*
(1,455)
Operating profit
89,700
143,888*
126,018
Finance income/(costs) - net
(16,552)
(29,977)
Profit before income tax
73,148
96,041
Income tax expense
(19,433)
(29,815)
Profit for the period
53,715
66,226
Profit attributable to:
Owners of the Company
53,742
69,910
Non-controlling interests
(27)
(3,684)
Adjusted EBITDA
104,334*
189,086*
189,926*
Adjusted EBITDA Margin
61.8%*
62.9%*
66.3%*

GLOBAL PORTS CONSOLIDATED BALANCE SHEET1
24
(1)Including bank deposits with maturity over 90 days
(2)Restated data as a result of applying an equity method accounting of the Group’s joint ventures, which were previously proportionally consolidated
Summary Balance Sheet
'000 USD
31-Dec-132
30-Jun-14
PP&E (incl. prepayments)
1,337,318
1,269,552
Intangible assets
1,441,140
1,388,907
Other non-current assets
245,880
235,600
Cash and equivalents1
114,208
115,488
Other current assets
137,747
69,010
Total assets
3,276,293
3,078,557
Equity attributable to the owners of the Company
1,208,030
1,179,851
Minority interest
(15,353)
38,350
LT borrowings
1,230,925
1,244,021
Other non-current liabilities
447,831
441,338
ST borrowings
206,388
124,151
Other current liabilities
198,472
50,846
Total equity and liabilities
3,276,293
3,078,557

GLOBAL PORTS CONSOLIDATED CASH FLOW STATEMENT
25
1)1H 2013 data is based on Illustrative Combined basis, including the results of NCC Group
Summary Cash Flow Statement
'000 USD
1H 2013 Reported
1H 2013 Illustrative Combined1
1H 2014 Reported
Cash generated from operations
110,608
196,303*
173,421
Dividends received from joint ventures
63,653
63,653*
8,260
Tax paid
(23,412)
(28,146)*
(23,978)
Net cash from operating activities
150,849
231,810*
157,703
Cash flow from investing activities
Acquisition of subsidiary under common control net of cash acquired
516*
Purchases of intangible assets
(57)
(57)*
(63)
Purchases of property, plant and equipment
(17,786)
(23,056)*
(13,013)
Proceeds from sale of property, plant and equipment
156
156*
379
Contingent consideration paid
-
-*
(55,706)
Loans granted to related and third parties
(15,299)
(32,314)*
(6,222)
Loans and finance lease repayments received
871
871*
730
Interest received
441
688*
632
Investment in bank deposits with maturity over 90 days
-
-*
989
Net cash used in investing activities
(31,674)
(53,196)*
(72,274)
Net cash from/(used) in financing activities
(119,612)
(173,242)*
(79,026)
Net increase/(decrease) in cash and cash equivalents
(437)
5,372*
6,403
Cash and cash equivalents at the beginning of the year
77,935
114,906*
113,219
Exchange gains/(losses) on cash and cash equivalents
(4,151)
(4,789)*
(4,134)
Cash and cash equivalents at the end of the year
73,347
115,489*
115,488

Terminals Overview
26
APPENDIX #3

27
PLP: TERMINAL LAYOUT(1)
(1) As of 30.06.2014
Main characteristics of the terminal:
• Total Area: 123 ha
• Number of berths: 13
• Quay length: 2,201 m
• Maximum ship draft: 11 m
• Railway track length: 6,037 m
Capacity
• Containers: 1,000,000 TEU
• Other bulk cargo: 900,000 tonnes
• Cars: 190,000 units
• Ro-Ro terminal capacity: 30,000 units
• Reefer sockets: 3,630
Western Speed Diameter
Tunnel
Ro-Ro
Terminal
Reefers
Loaded containers

28
(1) As of 30.06.2014
FCT: TERMINAL LAYOUT(1)
•Total Area: 89 ha
•4 operational berths of 780 m length, depth alongside – 11.5 meters
•Railway track length: 3.3 km Capacity
•Containers: 1,250,000 TEU
•Reefer sockets: 2,905

VSC: TERMINAL LAYOUT(1)
29
(1) As of 30.06.2014
Berths
Railway line
Railway line
Coal
terminal
Reefers
Loaded containers
Empty containers
•Number of berths: 4
•Total length of the quay line: 1,284 m
•Quay water depth: 13.5 m
•Railway infrastructure: 3 railway lines
•Container capacity: 650,000 TEU
•Reefer containers storage area: 225 plugs

MOBY DIK: TERMINAL LAYOUT(1)
30
(1) As of 30.06.2014
Container yard
City ring road
Reefer container yard
Container yard
Reefers
Loaded containers
Empty containers
Area for potential development
Custom inspection zone
•Total Area: 15.1 ha
•Two cargo quays able to accept container vessels and Ro-Ro vessels
•Total quay length is 321 m
•Maximum vessel draft is 8.9 m
•Container capacity: 400,000 TEU
•Reefer stands with 504 sockets
Buffer area for handling vessels

VEOS: TERMINAL LAYOUT(1)
31
(1) As of 30.06.2014
Area to be developed
Gulf of Finland
Pakterminal
Trendgate terminal
Termoil terminal
Pipelines
18 m
Railway unloading
Railway unloading
Railway unloading
•Area: 131.2 ha
•Berths: 7
•Access: Vessel, Barge, Rail, Truck
•Capacity: 1,026,000 cbm
•Tanks: 78
•Tank range: from 1,500 to 100,000 cbm
•442 advanced rail unloading positions

ULCT: TERMINAL LAYOUT(1)
32
(1) As of 30.06.2014
•Operations started in December 2011 Main characteristics of the terminal:
•Length of operational berths: 440 m, depth alongside: up to 13.5 m
•5 railway tracks of 525m length (25 rail wagons) each Capacity
•Containers: 440,000 TEU
•Reefer sockets: 420
Reefers
Containers

YANINO: TERMINAL LAYOUT(1)
33
(1) As of 30.06.2014
Temporary storage warehouse (TSW)
Koltushskoe highway
St.Petersburg
C class warehouse (cold)
General cargo area
Rail crossing
Ref. containers area
Railway lines
Container yard
Area to be
developed
Reefers
Loaded containers
•Total Area: 51.3 ha
•Container Capacity: 200 000 TEU
•General cargo capacity: 400 000 tonnes
•Railway infrastructure: 2 railway lines with 4 km of overall length
•C class warehouse: 29 500 sqm
•№ of el. plugs: 120
Custom zone for bulk cargo

LOGISTIKA TERMINAL: TERMINAL LAYOUT(1)
34
St.Petersburg
Moskovskoe highway
A class warehouse
C class warehouse (cold)
Railway lines
(1) As of 30.06.2014
Reefers
Loaded containers
Container yard
Roofed rail flyover
Temporary storage warehouse (TSW)
Access road
•Container Capacity: 200,000 TEU
•Heated warehouse: 10,500 sqm
•Unheated warehouse: 6,000 sqm
•№ of el. plugs: 50
Custom zone for containers

DEFINITIONS
35
Adjusted EBITDA (a non-IFRS financial measure) for Global Ports Group is defined as profit for the period before income tax expense, finance income/(costs)-net, share of profit/losses of JVs accounted for using equity method, depreciation of property, plant and equipment, amortisation of intangible assets, other gains/(losses)-net, impairment charge of property, plant and equipment, and impairment charge of goodwill;
Adjusted EBITDA Margin (a non-IFRS financial measure) is calculated as Adjusted EBITDA divided by revenue, expressed as a percentage;
Average Storage Capacity is a storage capacity available at Vopak E.O.S. oil products terminals, averaged for the beginning and end of the year;
Baltic Sea Basin is the geographic region of northwest Russia, Estonia and Finland surrounding the Gulf of Finland on the eastern Baltic Sea, including St. Petersburg, Tallinn, Helsinki and Kotka;
Container Throughput in the Russian Federation Ports is defined as total container throughput of the ports located in the Russian Federation, excluding half of cabotage cargo volumes. Respective information is sourced from ASOP (“Association of Sea Commercial Ports”, www.morport.com);
Cash Costs of Sales (a non-IFRS financial measure) are defined as cost of sales, adjusted for depreciation and impairment of property, plant and equipment, amortisation of intangible assets;
Cash Administrative, Selling and Marketing expenses (a non-IFRS financial measure) are defined as administrative, selling and marketing expenses, adjusted for depreciation and impairment of property, plant and equipment, amortisation of intangible assets;
CD Holding group consists of Yanino Logistics Park (an inland terminal in the vicinity of St-Petersburg), CD Holding and some other entities. The results of CD Holding group are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);
Far East Basin is the geographic region of southeast Russia, surrounding the Peter the Great Gulf, including Vladivostok and the Nakhodka Gulf, including Nakhodka on the Sea of Japan;
First Container Terminal (FCT) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo and is one of the first specialised container terminals to be established in the USSR. The Global Ports Group owns a 100% effective ownership interest in FCT. The results of FCT are fully consolidated;
Finnish Ports segment consists of two terminals in Finland, MLT Kotka and MLT Helsinki (in port of Vuosaari), in each of which Container Finance currently has a 25% effective ownership interest. The results of the Finnish Ports segment are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);
Fuel Oil Export Market is defined as the export of fuel oil from ports located in the Former Soviet Union countries;
Functional Currency is defined as the currency of the primary economic environment in which the entity operates. The functional currency of the Company and certain other entities in the Global Ports Group is US dollars. The functional currency of the Global Ports Group’s operating companies for the years under review was (a) for the Russian Ports segment, the Russian rouble, (b) for Oil Products Terminal segment, and for the Finnish Ports segment, the Euro;
Gross Container Throughput represents total container throughput of a Group’s terminal or a Group’s operating segment shown on a 100% basis. For the Russian Ports segment it excludes the container throughput of the Group’s inland container terminals, Yanino and Logistika Terminal;
Logistika Terminal (LT) is an inland container terminal providing a comprehensive range of container freight station and dry port services at one location. The terminal is located to the side of the St. Petersburg - Moscow road, approximately 17 kilometres from FCT and operates in the Shushary industrial cluster. The Global Ports Group owns a 100% effective ownership interest in LT. The results of LT are fully consolidated;
LTM Adjusted EBITDA (a non-IFRS financial measure) represents Adjusted EBITDA for the last twelve months;
MLT group consists of Moby Dik (a terminal in the vicinity of St-Petersburg) and Multi-Link Terminals Oy (terminal operator in Vuosaari (near Helsinki, Finland) and Kotka, Finland). The results of MLT group are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);
Moby Dik (MD) is located on the St. Petersburg ring road, approximately 30 kilometers from St. Petersburg, at the entry point of the St. Petersburg channel. It is the only container terminal in Kronstadt. The Global Ports Group owns a 75% effective ownership interest in MD, Container Finance LTD currently has a 25% effective ownership interest. The results of MD are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);

DEFINITIONS
36
Net Debt (a non-IFRS financial measure) is defined as a sum of current borrowings and non-current borrowings, less cash and cash equivalents and bank deposits with maturity over 90 days;
Oil Products Terminal segment consists of the Group’s 50% ownership interest in Vopak E.O.S. (in which Royal Vopak currently has a 50% effective ownership interest). The results of the Oil Products Terminal segment are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);
Operating Cash Costs of Russian Ports are defined as total Russian Ports segment’s cost of sales and administrative, selling and marketing expenses, less segment’s less depreciation and impairment of property, plant and equipment, less amortisation of intangible assets, a non-IFRS measure;
Petrolesport (PLP) is located in the St. Petersburg harbour, Russia’s primary gateway for container cargo. The Group owns a 100% effective ownership interest in PLP. The results of PLP are fully consolidated;
Revenue per CBM of Storage is defined as the total revenue of Oil Products Terminal segment (Vopak E.O.S.) for a respective period divided by Average Storage Capacity during that period;
Revenue per Tonne of Throughput is defined as the total revenue of Oil Products Terminal segment for a respective period divided by Oil Products Terminal segment’s Gross Throughput in tonnes;
Ro-Ro, roll on-roll off is cargo that can be driven into the belly of a ship rather than lifted aboard. Includes cars, buses, trucks and other vehicles;
Russian Ports segment consists of the Global Ports Group’s interests in PLP (100%), VSC (100%), FCT (100%), ULCT (80%) (in which Eurogate currently has a 20% effective ownership interest), Moby Dik (75%), Yanino (75%) (in each of Moby Dik and Yanino Container Finance currently has a 25% effective ownership interest), and Logistika Terminal (100%). The results of Moby Dik and Yanino are consolidated in the Global Ports’ interim condensed consolidated financial information for first half of 2014 as well as to the Illustrative Combined Metrics of first half of 2013 financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);
TEU is defined as twenty-foot equivalent unit, which is the standard container used worldwide as the uniform measure of container capacity; a TEU is 20 feet (6.06 metres) long and eight feet (2.44 metres) wide and tall;
Total Operating Cash Costs (a non-IFRS financial measure) is defined as Global Ports Group’s cost of sales, administrative, selling and marketing expenses, less depreciation and impairment of property, plant and equipment, less amortisation of intangible assets;
Transaction is the acquisition of 100% of the share capital of NCC Group Limited, announced on 2 September 2013 and completed on 27 December 2013;
Ust Luga Container Terminal (ULCT) is located in the large multi-purpose Ust-Luga port cluster on the Baltic Sea, approximately 100 kilometres westwards from St. Petersburg city ring road. ULCT began operations in December 2011. The Global Ports Group owns a 80% effective ownership interest in ULCT, Eurogate, the international container terminal operator, currently has a 20% effective ownership interest. The results of ULCT are fully consolidated;
Vopak E.O.S. includes AS V.E.O.S. and various other entities (including an intermediate holding) that own and manage an oil products terminal in Muuga port near Tallinn, Estonia. The Group owns a 50% effective ownership interest in Vopak E.O.S.. The remaining 50% ownership interest is held by Royal Vopak. The results of Vopak E.O.S. are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA);
Vostochnaya Stevedoring Company (VSC) is located in the deep-water port of Vostochny near Nakhodka on the Russian Pacific coast, approximately eight kilometers from the Nakhodka-Vostochnaya railway station, which is connected to the Trans-Siberian Railway. The Group owns a 100% effective ownership interest in VSC. The results of VSC are fully consolidated; and
Yanino Logistics Park (YLP) is the first terminal in the Group’s inland terminal business and is one of only a few multi-purpose container logistics complexes in Russia providing a comprehensive range of container and logistics services at one location. It is located approximately 70 kilometres from the Moby Dik terminal in Kronstadt and approximately 50 kilometres from PLP. The Global Ports Group owns a 75% effective ownership interest in YLP, Container Finance LTD currently has a 25% effective ownership interest. The results of YLP are consolidated in the Global Ports’ financial information using equity method of accounting (proportionate share of net profit shown below EBITDA).

INVESTOR RELATIONS
Mikhail Grigoriev
Tatyana Stepanova
Phone: +357 25 313 475
E-mail: ir@globalports.com Web: www.globalports.com
37

Global Ports - 2014 Interim Results Presentation

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