1. Confidential and Proprietary Information
Introduction to
APL Logistics
Confidential and Proprietary Information

2. Company Overview APL: Containerised Transport & Terminals
Top 10 container shipping line:
100+ vessel fleet
411,000+ containers
8 terminals
US$5.96 billion in revenue (FY’05)
159 years of continuous operation
Industry leader in innovation, reliability and service quality
Global network serves 25,000 locations in 140 countries on 6 continents
APL: Containerised Transport & Terminals
NOL at a Glance
US$7.27 billion (FY’05) global transportation & logistics company
Largest shipping / transport company listed on Singapore Stock Exchange
Core business in Liner & Logistics
Strategic focus on integrated supply chain solutions
Global top 25 3PL
US$1.29 billion in revenue (FY’05)
5,000 employees
260+ locations in 53 countries on 6 continents
Leading provider of origin cargo management services in Asia
2.2 million m2 of logistics facilities globally (among largest in North America)
Managing US$600+ million of purchased transport
APL Logistics: Logistics & Supply Chain Services

3. Representative Customers
Over 800 customers worldwide

4. Global Network and Principal Locations
United States of America
Mexico
Guatemala
Dominican Republic
Jamaica
El Salvador
Nicaragua
Costa Rica
Columbia
Peru
Chile
Argentina
UK & Ireland
Japan
South Africa
Madagascar
Mauritius
Australia
Egypt
Bahrain
UAE
Thailand
Sri Lanka
Indonesia
Malaysia
Singapore
Philippines
Taiwan
Hong Kong
Korea
China
Pakistan
India
Saipan
Italy
France
Turkey
Benelux
Germany
Brazil
Norway
Spain
Sweden
Finland
Russia
Poland
Czech Republic
Austria
Romania
Hungary
Bulgaria
Greece
Portugal
Canada
Estonia
Denmark

5. Europe Region Capabilities Overview Consolidation Services
International Freight Management:
Ocean FCL and LCL
Customs Brokerage
Intra-European Trucking and Intermodal Transportation
Supply Chain Solutions
Contract Logistics / Warehousing:
Dedicated & multi-user facilities
Manufacturing & distribution support

6. Asia/Middle East/Africa
Capabilities Overview
Origin Warehousing Services
Consolidation Services (one of the largest consolidators of product from Asia)
Vendor Management Services
International Freight Management
Rail Network:
JV with Concor to build and operate a CFS and CY in North India
Customs Brokerage Services

7. North America Capabilities Overview Consolidation Services
International Freight Management
Customs Brokerage
Warehousing and Contract Logistics:
Dedicated & multi-user facilities
Manufacturing & distribution support
VMI, merge in-transit, kitting, sequencing, light assembly:
Value added services
Dedicated contract carriage
Freight management
Automotive Logistics:
Inbound to manufacturing
Finished vehicle distribution

8. Latin America Capabilities Overview Deconsolidation & Distribution
International Freight Management
Warehousing & Distribution:
Market leader in Chile
Operations in Mexico, and Venezuela (JV), and Brazil (primary and agent)
Cross-border Intermodal Services (NAFTA)

9. Challenges in Operating Global Supply Chains
Distribution Network Challenges
Asset intensive and increasingly expensive to operate
Increasing complexity and more demanding customers
Sourcing Network Challenges
Dispersed vendors
Varying levels of infrastructure, education, and technology
Few standardised processes
Difficulties of managing compliance
Impact of natural/political events
International Transportation Challenges
Efficient routing and modal selection
Managing lead times
In-transit inventory visibility and manageability
Freight and equipment optimization

10. Global Supply Chain Management Solutions
International Freight Management
Origin Cargo Management
Destination Services
Origin Services
Consolidation Services
Vendor
Management
Services
Ocean & Air Freight
Land Transportation
Customs Brokerage
Documentation Management
Warehousing
Services
Transport
Services
Information Management
Supply Chain Design and Programme Management

11. Leader in Origin Cargo Management Services Across Asia
Year-on-Year Increases in Consolidation Volumes
Strong process discipline through our Service Integrity programme
Award winning operations
High customer satisfaction measures
IT innovation and expertise
First with PO tracking
First with EDI ASN’s
Certified factory scanning and PO management solutions
Leading web-based supply chain management tools
Year
Volume (000 CBMs)

12. Consolidation Services
Single Country Consolidation
Available at any APL Logistics warehouse location
In conjunction with any ocean carrier and charged at FCL box rate
Reduces amount of handling
Cost savings vs LCL, 20ft and fully-laden 40ft containers
Improved Transit Time vs LCL services
Single Master Bill of Lading
Reduced Documentation and Customs entries
Fewer deliveries to distribution centres
Mixing Hubs
Mixing hubs in Singapore and Kaohsiung
Benefits similar to Single Country Consolidation
Can eliminate LCL/20’s from smaller origins
Cost effective handling in Mixing Hubs
Transits comparable to FCL services
Mixing hub free time can provide delay in transit options

13. Vendor Management Services
Vendor Management Services ensure that products are delivered:
To the right specification
In the right quantities
At the right time
Improves supply chain efficiency and reduces costs
APL Logistics works with customers to significantly improve the management and control of their vendors, and communication between all links in the supply chain

14. Vendor Management Vendor Education Programmes
APL Logistics meets with all vendors to quickly establish a clear understanding of logistics processes and procedures
Promote a spirit of teamwork between all parties and creates open and seamless communications
Between 1994 and 2005, APL Logistics conducted over 350 Vendor Education Programmes at all origins for over 20,000 vendors
Vendor Performance Reporting
APL Logistics offers customers a comprehensive range of vendor performance reports based on agreed key performance indicators
Specific deliverables measured can include:
Timeliness of meeting shipment requests
Container utilisation
Delivery quantity deviations
Accuracy of shipment advice reports

15. International Freight Management
A ‘one-stop-shop’ of International Freight Management services delivering speed and flexibility, whatever the shipment size
Services include:
Ocean Freight
First and/or second tier carriers, depending on the customer’s requirements
Airfreight
Priority access to major international carriers
Consolidated billing, door/airport collections and time definite services

16. International Freight Management (cont’d…)
Land Transportation
LTL (less than full truck load), FTL (full truck load), intermodal, barge and freight operations throughout Europe
Customs Brokerage
Import and export customs management services
Combined with other services, delivers gains in flexibility, reduced costs and improved cycle times
Documentation Management
Including documentation scanning

17. Destination Services Warehousing Services, including: Site selection
Deconsolidation
Inbound order management, including cross-docking and barcode scanning
Bonded warehousing in many countries
Value-added services, including pick and pack, kitting, sub-assembly, merge-in-transit order fulfilment and returns management
Transport Services, including:
Full and part load distribution services
Intermodal road/rail/barge container and swapbody transportation
Parcel and small package services
Secondary distribution and delivery to point of sale

18. Warehouse Management Services
Contract Warehousing, including:
Dedicated and multi-user facilities
Facility design and site selection
Public Warehousing
Manufacturing Support, including:
VMI
Kitting
Sequencing
Merge-in-transit
Light assembly
JIT delivery
Dedicated contract carriage
Distribution Support, including:
Inspections and configuration
Order fulfillment
Delivery optimization
Packaging and labeling

19. Multi-Carrier Visibility
Supply Chain Visibility with See Change
See Change – Global end-to-end supply chain visibility from origin to destination
Web-based
Any shipment mode (ocean, air, land)
Any delivery mode (CY, CFS, SDD)
Any carrier (ocean, rail, truck, air)
Single application and global data repository
Customised searches and reports
Multi-Mode,
Multi-Carrier Visibility
Provides an automatic way to monitor what should happen against what is happening
Standard and user-defined alert notification
Notification methods include web-based “dashboards”, and paging
Exception Detection

20. Why See Change? Solutions with Visibility For example, will alert:
Order Data
ERP, store, vendor,
purchasing
Solutions with Visibility
For example, will alert:
That the order of 600 products only booked 450
Logistics Analyst when a shipment has not cleared customs
Warehouse Manager the status of standing inventories, customer orders and deliveries
Shipment Data
Ocean, air, rail,
truck
Solutions without Visibility
Silos of information
Manual tracking processes
Missed delivery dates and dissatisfied customers
Inventory Data
In-transit, store,
warehouse,
distribution centre

21. ASN Toolkit
An easy to use barcode and scanning solution that can be implemented at vendor’s factories or facilities
Provides internet enabled PO management
Increases supply chain visibility and ensures ASN (advanced shipping notification) compliance with accurate routing of POs, barcode information, electronic packing lists and label printing
Multiple file formats

22. Innovation - RFID
APL Logistics offer customers a suite of RFID solutions
Solutions delivered via flexible delivery strategies to enable customers to comply with mandates
Benefits of RFID include:
Provision of real-time information
Increased response times allowing companies to react more quickly to changes in demand
Increased competitiveness
Conclusion: APLL offers clear value for an RFID project:
Minimize cost
By moving labor to origin.
By sharing cost across multiple customers at destination.
Minimize Risk
Allows customers to achieve compliance without investing in complex new technology that is continuing to change.
Ease of Entry
We have the experience to get your RFID project completed on time and with minimal impact to your ongoing operations.

23. eBooking
Facilitates the better management of resources by replacing the need to fax booking requests to APL Logistics’ offices
A secure, web-based application enabling vendors to add booking data directly into ACS123, our origin based operating system
On receipt of the eBooking submission, a confirmation is automatically generated to confirm APL Logistics’ acceptance or rejection of the booking
Improves data integrity by eliminating unnecessary re-entering of information and also provides data validation and system checks
Reduces total booking response time

24. In December 2005 Christian Salvesen joined forces with APL Logistics to form Holistica Solutions Ltd on an equal joint venture basis
Holistica was created in response to the growing market demand for end to end supply chain solutions through a single provider, and combines the extensive distribution network and capabilities of Christian Salvesen in Europe with the global reach and international freight services provided by APL Logistics
Holistica dovetails these complimentary assets, skills and geographies by drawing on the resources of the parent businesses, whilst enabling its customers to operate a single contract that provides end-to-end logistics services and continual improvement in cost efficiency and end-user availability
Through true end-to-end supply chain collaboration and optimisation, Holistica is able to provide benefits to customers that significantly exceed the sum of the two constituent parts provided by Christian Salvesen and APL Logistics respectively

25. Management and Account Development
integrates the complimentary assets and capabilities of its two principal organisations, and connects its knowledge and expertise for supply chain optimisation through one single source
50/50 Joint Venture
Management and Account Development
Turnover $1.3billion
5 ,000 employees
269 sites
53 countries worldwide
More than 800 customers in four major vertical markets: Auto/Industrial, Consumer, Electronics and Retail
Turnover $1.7 billion
13,000 employees
200 sites
6 countries in Europe
Managing outsourced supply chain operations for Manufacturing and Retail customers in the Industrial, Consumer and Food sectors

26. Global Transportation Destination Services
Design, Operation and Continuous Improvement of End-to-End Supply Chain Performance
Enabled by single systems connectivity that provides end to end visibility, event management, performance measurement and analytics for supply chain optimisation
Vendor
Management
Origin Cargo
Export Freight Management
International
Freight
Import Handling & Port Clearance
Inland
Transportation
Warehousing & Distribution
Delivery Management
Origin Services
Purchase Order Management
Vendor Compliance
Quality Assurance
Warehousing
Vendor Managed Inventory
Kitting/Packaging/Labeling
Garments on Hangers
Consolidation
Multi Country Consolidation
Local Drayage
Terminal Handling
Freight Management
Export Documentation
Courier Services
Global Transportation
Freight Forwarding
Carrier Management
Ocean, Air and Overland
Full and Part Loads
Intermodal Transport
Deconsolidation
Local Transportation
Customs House Brokerage
Freight Payment & Audit
Destination Services
DC Bypass
Warehouse/DC Management
Cross Dock
Inspection/Configuration
Packaging/Labeling
VMI / Kitting
Sequencing
Light sub-assembly
Storage/Pick/Pack/Despatch
Final Delivery
Fine Distribution
JIT pickup/delivery
Returns Management