One of Europe’s leading ferry operators One 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 centres 11 port operation centres 7 dedicated freight booking-offices 7 dedicated freight booking-offices 21 vessel fleet 21 vessel fleet Freight & multipurpose vessels Freight & multipurpose vessels Strategic and reliable times and services Strategic and reliable times and services

A customer “relationship” approach A customer “relationship” approach Excellent operational and back-office support Excellent operational and back-office support ,9 million freight units carried ,9 million freight units carried 2011 – freight revenue £300 million – freight revenue £300 million – newest and largest ever ferry on 2011 – newest and largest ever ferry on Dover/Calais the Spirit of Britain Dover/Calais the Spirit of Britain 2012 – delivery of sister ship the Spirit of France 2012 – delivery of sister ship the Spirit of France Over 5,000 freight customers in 15 countries Over 5,000 freight customers in 15 countries

FREIGHT & PASSENGERS Crossing Time 90 minutes Frequency Up to 60 sailings per day Dwell Time in Port Average 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 ONLY Crossing 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 years Rail handling available in Zeebrugge

Route Europoort – Hull FREIGHT & PAX Duration 10 hours Frequency Daily Fleet Pride of Hull Pride of Rotterdam Route Zeebrugge – Hull FREIGHT & PAX Duration 12 hours Frequency Daily Fleet Pride of York Pride of Bruges Route Zeebrugge – Teesport FREIGHT ONLY Duration 16 hours Frequency 3 per week Fleet Boresong Route Europoort – Teesport FREIGHT ONLY Duration 16 hours Frequency 3 per week Fleet Norsky

Route Dublin – Liverpool Duration 7 hours 30 mins Frequency 3 per day Fleet Norbay Norbank Endeavour Route Cairnryan – Larne Duration 1 hours 45 mins Frequency 7 per day Fleet E. Highlander E. Causeway Route Troon – Larne Duration 2 hours Frequency 2 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 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 Very limited data available on North Sea Freight Routes, P&O and Stena Killingholme and 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 market that 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