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Novorossiysk Commercial Sea Port (NMTP)

Investor Presentation Dec 4, 2018

6453_rns_2018-12-04_f2c1b46c-b0f0-4154-ac80-ad0c898e92fe.pdf

Investor Presentation

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NCSP Group Financial Results For The Nine Months 2018 03.12.2018

Disclaimer

All statements in this presentation, other than historical facts, that address company's business are looking forward statements. Although NCSP believes that expectations expressed in such forward looking statements are based on reasonable assumptions, such statements should not in any way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include overall market conditions. The company is subject to specific risks inherent in the stevedoring business and general economic and business conditions. Any statement or number in this presentation may be changed, depending on market conditions and other relevant developments.

NCSP Group Market Position

NCSP Group ranks №1 in the Russian port sector and №3 among European ports by volume, holding strategic market share in transshipment of all key export commodities at Russian seaports

NCSP Group Market Share as Part of Total Volumes of the Russian Seaports in 2017

NCSP Group Clients

NCSP Group Geographic Positioning

Unique positioning of NCSP Group terminals on the Baltic and the Black Sea allows it to benefit from growing demand for transshipment of cargo in all the directions.

9 Months 2018 FINANCIAL AND OPERATING PERFORMANCE

Highlights of the 9 Months 2018

Volumes 105,2 mln
tons
Revenue \$ 712,5 mln
EBITDA* \$ 512,9 mln
EBITDA Margin* 72,0 %
Debt \$ 1 111,3 mln
Net debt* \$ 776,0 mln

Volumes 105,2 mln tons Cash \$ 335,3 mln

Revenue Factor Analysis 9M 2018 / 9M 2017, \$ mln

Revenue Factor Analysis by Cargo 9M 2018 / 9M 2017, \$ mln

EBITDA Factor Analysis 9M 2018 / 9M 2017, \$ mln

Volumes Breakdown by Cargo 9M 2018 / 9M 2017

Revenue Breakdown by Cargo 9M 2018 / 9M 2017

Costs Breakdown 9M 2018 / 9M 2017

NCSP Group Key Financial Metrics

(in thousand US dollars) 9М 2018 9М 2017 Change Change %
Revenue 712 500 661 557 50 943 7,7%
Stevedoring services 566 582 520 420 46 162 8,9%
Additional port services 129 724 81 957 47 767 58,3%
Fleet services 9 933 52 035 -42 102 -80,9%
Other 6 261 7 145 -884 -12,4%
COS 223 308 194 795 28 513 14,6%
SG&A 43 078 46 030 -2 952 -6,4%
EBITDA* 512 931 482 453 30 478 6,3%
EBITDA margin (%)* 72,0% 72,9%
Profit for the period 215 698 359 354 -143 656 -40,0%
30.09.2018 31.12.2017 Change Change %
Debt (including financial lease obligations) 1 111 311 1 196 425 -85 114 -7,1%
Cash and cash equivalents 335 322 121 528 213 794 175,9%
Net debt* 775 989 1 074 897 -298 908 -27,8%
Net debt /
LTM EBITDA*
1,13 1,64

NCSP Group Operating Performance*

(thousands tons) 9М 2018 9М 2017 Change Change
%
Cargo turnover, total 105 166 107 742 -2 576 -2,4%
Liquid cargo, total 75 493 80 799 -5 306 -6,6%
Crude oil 48 848 56 951 -8 103 -14,2%
Oil products 25 819 23 055 2 764 12,0%
UAN 583 456 127 27,9%
Seed oils 243 337 -94 -27,9%
Bulk cargo, total 13 297 11 915 1 382 11,6%
Grain 9 447 7 465 1 982 26,6%
Mineral fertilizers 425 572 -147 -25,7%
Sugar 128 422 -294 -69,7%
Iron ore and ore concentrate 2 111 1 894 217 11,5%
Coal 1 186 1 563 -377 -24,1%
General cargo, total 10 993 10 339 654 6,3%
Ferrous metals 9 991 8 987 1 004 11,2%
Timber 244 296 -52 -17,6%
Non-ferrous metals 758 868 -110 -12,7%
Perishable cargo 188 -188 -100,0%
Containers 4 681 4 386 295 6,7%
Containers (thousand TEU) 469 439 30 6,8%
Other 702 303 399 131,7%

Disclaimer

All statements in this presentation, other than historical facts, that address company's business are forward looking statements. Although NCSP believes that expectations expressed in such forward looking statements are based on reasonable assumptions, such statements should not in any way be construed as guarantees of future performance. Factors that could cause developments to differ materially from those expressed include overall market conditions. The company is subject to specific risks inherent in the stevedoring business and general economic and business conditions. Any statement or number in this presentation may be changed, depending on market conditions and other relevant developments.

NCSP Group is the largest port operator in Russia and the third largest in Europe, in terms of cargo turnover in 2017*. NCSP shares are traded on Russia's Moscow Exchange (ticker: NMTP) and on the London Stock Exchange in the form of GDRs (ticker: NCSP). NCSP Group consolidates the following companies: PJSC Novorossiysk Commercial Sea Port, LLC Primorsk Trade Port, LLC Novorossiysk Grain Terminal, JSC Novorossiysk Shiprepair yard, JSC FNCSP, JSC NLE, LLC IPP, LLC Baltic Stevedore Company, and JSC SFP.

* Management accounts

Contacts

Public Relations: [email protected] Investor Relations: [email protected]

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