2004 Preliminary Results

1
2004 Preliminary Results

• 8 March 2005

2

• Lord Sterling Introduction
• Robert Woods Overview
• Nick Luff Financials
• Robert Woods Business Review
• Strategy Outlook

3
Overview

• Significant strategic progress
• PONL
• Ports expansion
• Ferries business review
• 371 million net property sales
• 2004 Trading
• Substantially improved performance
• Good Ports result
• Container Shipping strong

4

• Nick Luff
• Chief Financial Officer

5
Financial Summary

• Ferries 2003 result included 40m of
  reorganisation and impairment charges

6
Earnings and Dividends
Headline eps eps before exceptional items
(including tax thereon) and goodwill amortisation
7
Cash Flow
8
Capital Expenditure
9
Balance Sheet
Includes 36 million (FY 2003 75 million)
receivables relating to prior transactions Grou
p net borrowings / Group net borrowings
minority interests stockholders funds
10
Cold Logistics
Before depreciation, amortisation and
exceptional items
11
Property
12
Property
13
Pensions

• Main PO Scheme
• PO Scheme to be separated PO 75 PO
  Nedlloyd 25
• PO Nedlloyd paying 70 million into PO Scheme
  for share of the deficit not being transferred
  (previously PO Nedlloyds share of deficit was
  38.5)
• PO share of FRS 17 proforma deficit now 200
  million (post separation) compared to 197
  million reported at December 2003
• Merchant Navy Officers Pension Fund (MNOPF)
• Court case in progress outcome later in 2005
• PO share of deficit on FRS 17 basis estimated at
  125 million or 30 million
• Share of deficit may vary depending on payments
  from other employers

14
Estimated Impact of IFRS

• IFRS impacts presentation, disclosure and
  measurement within accounts principal changes
  for PO are
• IAS 19 Pensions
• Deficit in defined benefit pension schemes on
  balance sheet 250 million liability
• Current SSAP 24 deficit charge to income
  statement no longer applicable 4 million
  benefit to income statement
• IFRS 3 Business Combinations
• No amortisation of goodwill in income statement
  c. 8 million ongoing benefit to income statement
• IFRS 2 Share Based Payments
• Fair value of stock options charged to income
  statement 2 million
• IAS 27 Consolidated Financial Statements
• Accounting for Hamburg, HTC property
• Other

Based on FRS 17 rather than IAS 19 valuation
and excluding MNOPF and the Groups share of
RPONL
15

• Robert Woods
• Chief Executive

16
Ports
TEU (000s) reflects volumes at each container
terminal attributable to PO EBITDA and EBIT
include POs share of associates and joint
ventures ROANOA is return on average net
operating assets Before exceptional items
17
Ports - Asia
18
Ports - Americas
19
Ports - Australia
EBIT is before exceptional credit of 5.7
million (2003 nil)
20
Ports Europe
EBIT is before exceptional charge of 1.4
million (2003 nil)
21
Ports Capacity
Note Data presented is capacity attributable
to PO Excludes new projects under
consideration
22
Ports - Outlook

• Good growth continuing into 2005
• Capacity constraints focus investment on
  expanding current operations
• Asia strong
• Americas continued improvement
• Australia remains robust
• Europe expansion
• Antwerp
• Southampton
• France

23
Ferries Trading
Volume number of passengers
24
Ferries Result
Other includes discontinued routes,
Ferrymasters and, in 2003, a 4.1 million
non-recurring charge relating to
Portsmouth-Bilbao route
25
Ferries Business Review

• Improved freight and tourist product
• Profit improvements 55 million per annum
  on-track
• new management appointments
• 3 routes now closed and Portsmouth Le Havre
  route closes end September
• 6 ships redelivered/sold plus 1 to be redelivered
  end 2005
• employee consultation successful to date
• headcount reduction of c.1,100 agreed and c.700
  implemented in January/February
• marine procurement outsourced

Closure of Portsmouth Le Havre route remains
subject to employee consultation
26
Ferries Outlook

• Trading conditions remain challenging
• Freight
• steady market growth
• freight rates encouraging
• Tourist
• market remains weak
• yield improvements targeted
• On-board spend
• stable
• Operating difficulties in Calais will have a
  negative impact but overall result to improve

27
Group Strategy Outlook

• Ports
• Further expansion 1 billion over next 5 years
• Continuing strong growth
• Good start to 2005
• Ferries implementation of fundamental business
  review on track
• Container Shipping positive trends continuing
• Property significant net sales already in 2005
• Operating profit, excluding Property, to improve
  further in 2005

28
2004 Preliminary ResultsAppendix
29
Pensions Detail

• PO Nedlloyd transferring 25 of PO Scheme
  assets and liabilities to their own scheme and
  paying 70 million re their share of the deficit
  not being transferred
• Small benefit to deficit position from PO
  Nedlloyd separation offset by more cautious
  mortality assumptions
• Merchant Navy Officers Pension Fund (MNOPF)
• Court case in process share of deficit on FRS
  17 basis estimated at 125 million or 30
  million, subject to variation depending on
  payments from other employers

30
IFRS Proforma EBIT Position
NB Presented on a proforma basis, as IFRS
requires different presentation of the income
statement
31
Ferries Continuing Routes
Volume number of passengers PF 2004 2004
actual adjusted to remove all potential route
closures planned in fundamental business review