THE PROPELLER CLUB OF BASLE 20 th November 2013 Philippe J. Dartois

A liner industry in motion A carrier perspective

3 1. MOL quick overview 2. Challenges to the liner Industry 3. MOL direction forward Topics

4 MOL Overview (1) Who is

Strategically Balanced Portfolio

6 W ho is MOL? In Container Ship Business

We currently operate 9 terminals in: - USA: Long Beach, Oakland & Jacksonville -Japan: Tokyo, Yokohama, Osaka & Kobe -Thailand: Laem Chabang -Vietnam: Cai-Mep (New) We will operate 1 more: - Netherlands: Maasvlakte 2, Rotterdam Growing own MOL Terminals 7

Double digit annual growth Young fleet: average age 3.5 years *All fleet size in TEU at the beginning of fiscal year (April 1) 08/2013: 100 kTeus Source: Drewry Maritime Research & Carriers Above figure subject to leasing fleet injection in 2011; Growing value added products Reefers

13 Transpacific Services 16 Asia / North America MOL Services Asia / North America 16 Transpacific 13(9 USWC/ 4 USEC) Transatlantic 3 via Suez Canal Asia / Latin America 3 Asia / Europe 6 Asia / Mediterranean/Black Sea 3 Intra-Asia 33 Asia / Oceania 6 Asia / Africa / Middle East 8 North America / Latin America 6 North America / South Africa 1 (overlapped) South America / Africa 1 (overlapped) Europe / North America 3 Europe / Africa 4 Mediterranen/North America 1 89 MOL Global Offices 4 Transatlantic Services 6 NA/Latin Services 3 Transatlantic via Suez 16 Asia / North America Asia & Oceania 80 Offices Europe 20 Offices Africa 11 Offices South America 6 Offices North America 29 Offices Growing MOL Liner Network 6 Asia Europe Services 3 Asia /Med Black Sea West (2) & South (4) – Africa

MOL Liner organisation MOL Liner organisation 10

11 FYI – MOL Latest Rating Highest Class Rating in Shipping Industry.

Industry challenges 12 1.The increase of vessel capacity on global basis. 2.The continued high level of fuel costs on the longer term 3.Differentiation between carries. How can a Line make a difference?

Cellular Fleet Growth vs Global Throughput Source: Alphaliner (February 2013)

14 Financial performance and the supply chain impact The impact of Carriers failing to achieve a sustainable rate of return on investment. 1.Further consolidation to achieve economies of scale leading to larger vessels but less sailings 2.A further reduction of the cost base by increasing slow steaming which will increase transit times. Limited incentives to speed up and make up for delays 3.Carriers have changed their perception of fixed costs. Fluctuating volumes or inadequate volumes will lead to more blank sailings

15 MOL approach to over capacity Containerships: Major Operators/Alliances Share by TEU (as of Apr.2012) G6MOL APL Hyundai Hapag Lloyd NYK OOCL CYKH Cosco K- Line Yang Ming Hanjin Asia / Europe Route

Alliances benefits A case for G6 Excellent direct coverage Improved frequencies Improved transit times Increase port coverage Facilitating the smooth phase in of larger and more economical vessels Lowering the unit cost of production A larger entity will be able to adjust capacity to demand, either way, in a more controlled manner Grand AllianceThe New World Alliance

17 MOL Unique selling points How do WE differentiate ourselves 1.Ensuring Equipment supply at origin 2.Carrier haulage costs and capabilities 3.Documentation quality 4.Price & conditions 5.Multi Trade Relationships with customers 6.Financial strength of the carrier 7.Products expertise (Reefer, OOG) & customer friendly advice

18 MOL approach to making a difference We depend on a loyal customer base We will meet and exceed our customer needs by: Providing a premier, cost effective and reliable service Prioritizing safety, environmental protection and financial stability Our commitment to our customers will be translated in publishing Key Performance Indicators that show our performance.

19 Count on MOL GLOBAL Environmental Operations Safety

Count on MOL 1. Europe Export Invoicing Speed MOL calculates the monthly average speed of issuing import/export ocean freight invoices. The average is taken by dividing the total number of calendar days by the number of first freight invoices. Establishment of Regional Key Performance Indicators in Europe: Count on MOL

2. Europe Import Invoicing Speed MOL calculates the monthly average speed of issuing import/export ocean freight invoices. The average is taken by dividing the total number of calendar days by the number of first freight invoices. Establishment of Regional Key Performance Indicators in Europe: Count on MOL

3. Europe Import Invoicing Accuracy On a monthly basis, MOL measures the percentage of ocean freight invoices issued correctly the first time (no credit notes issued subsequently). Establishment of Regional Key Performance Indicators in Europe: Count on MOL

4. Europe Export Invoicing Accuracy On a monthly basis, MOL measures the percentage of ocean freight invoices issued correctly the first time (no credit notes issued subsequently). Establishment of Regional Key Performance Indicators in Europe: Count on MOL

24 Thank You