Mercator Lines (Singapore) Ltd.

Q2 FY 2012 Results Quarter Ended September 30th 2011

Stock Code : EE6

DISCLAIMER
This document contains forward-looking statements which are statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements generally can be identified by the use of forward-looking terminology, such as may, will, could, expect, anticipate, intend, plan, believe, seek, estimate, project and similar terms and phrases. These statements include, among others, statements regarding our business strategy, future financial position and results, and plans and objectives of our management for future operations. Forwardlooking statements are, by their nature subject to substantial risks and uncertainties, and investors should not unduly rely on such statements. Forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. These statements are based on our managements beliefs and assumptions, which in turn are based on currently available information. Although we believe the assumptions upon which these forward looking statements are based are reasonable, any of these assumptions could prove to be inaccurate, and the forward-looking statements based on these assumptions could be incorrect. Actual results may differ materially from information contained in the forward-looking statements as a result of a number of factors, many of which are beyond our control . Because of these factors, we caution you not to place undue reliance on any of our forward-looking statements. Forward-looking statements we make represent our judgment on the dates such statements are made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. Save as required by all applicable laws of applicable jurisdictions, including the SFA, and/or rules of the SGX-ST, we assume no obligation to update any information contained in this document or to publicly release the results of any revisions to any forward-looking statements to reflect events or circumstances that occur, or that we become aware of, after the date of this document.

PRESENTATION OUTLINE

Mercator Lines (Singapore) Ltd.

Financial Overview
Market Review & Outlook Company Overview

Mercator Lines (Singapore) Ltd.

Financial Overview

FINANCIAL HIGHLIGHTS FOR THE QUARTER (Q2 FY 2012)

REVENUE

NET PROFIT

Revenue at USD 35.1 mn. as compared to USD 42.3 mn. in Q2 FY 2011

Net profit at USD 1.7 mn. as compared to USD 10.3 mn in Q2 FY 2011

EBITDA

OPERATING DAYS

EBITDA at USD 13.0 mn. as compared to USD 21.0 mn in Q2 FY 2011

Operating days at 1558 days increased by about 13 % as compared to Q2 FY 2011

Earnings got impacted adversely due to lower freight rates and lower trade volumes during monsoon season. However, TCE rate per day of USD 18,812 achieved as against average Market Rate* of USD 12,875
Note : FY /Financial Year refers to the period from April 1st of current year to March 31st of following year * Market rate refers to average of 4 Time charter routes for Panamax vessels

BALANCE SHEET HIGHLIGHTS

(In USD millions)
Cash & Bank Balances Trade Receivables Vessel, Property & Equipment Debt Trade Payables Shareholders Equity

30 September 2011
17.1 15.0 626.8

30 September 2010
29.1 16.7 593.6

264.2 15.7 391.5

255.3 9.3 384.6

Debt Equity Ratio Market Price per share EPS

0.67 SGD 0.139* 0.2 SG cents

0.66 SGD 0.280 1.1 SG cents

* As on October 28, 2011

Healthy Balance Sheet with a low Debt Equity Ratio

HISTORIC FINANCIAL PERFORMANCE

Particulars Revenue (USD mn.) FY 07 85.1 FY 08 146.2 FY 09 186.1 FY 10 144.5 FY 11 155.4 H1 FY 2012 73.2

Net Profit (USD mn.)

TCE Earnings per day (in USD) Operating days Total Fixed Assets (USD mn.)

12.9
24,138 2,848 93.4

52.2
37,440 3,507 376.4

75.8
41,886 4,084 485.4

40.7
27,605 4,703 570.8

31.1
26,049 5,543 644.5

5.6
20,622 3,120 626.8

FY 2007-FY 2011 Revenue CAGR of 16% FY 2007-FY 2011 Net Profit CAGR of 24% Healthy EBIDTA margins maintained Consistent increase in operating days FY 2007-FY 2011 Fixed Assets CAGR of 62%

FLEET UTILISATION
HIGH CAPACITY UTILIZATION

Q2 FY 2012

H1 FY 2012

Owned vessels
Number of vessels Operating days Fleet utilization % 14 1237 96.0% 4 321 100.0% 18 1558 96.8% 29,309 18,812 14 2448 96.4% 7 673 99.9% 21 3120 97.1% 64,342 20,622

Chartered-in vessels*
Number of vessels Operating days Fleet utilization %

Total fleet
Number of vessels Operating days Fleet utilization % TCE Revenue (US$000s) TCE Rate (US$ per day)

TCE Revenue is defined as revenue less voyage expenses before taking into account revenues attributable to vessels chartered- in on a voyage charter. * Company charters in vessels on short term basis to maximize earnings out of its contract.

FAVOURABLE DEBT REPAYMENTS

33.0 26.1 18.7

25.5

24.5

US$116.3

Next6 months FY 2012

FY 2013

FY 2014

FY2015

FY 2016

Our debt repayment commitments are structured to ensure cash flow flexibility
Note: Amounts in US$ Millions Repayment schedule is towards principal payments only. Repayment schedule excludes the convertible Bonds due in 2012

CREATING LONG TERM VALUE

700

644 571 485 376 259

627

600
USD Millions 500 400 300 200 100 0 2008 2009

340

2010 Net Worth

2011

H1 FY 2012

Fixed Assets

Debt/Equity ratio

Strong Balance Sheet with low debt equity ratio, zero capital commitments and 3 unencumbered vessels

Ratio

371

386

391

2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 -

PER DAY TCE EARNINGS Vs. MARKET

45000 40000 35000 30000 25000 20000 15000 10000 5000 0 FY 2009 FY 2010 FY 2011 H1 FY 2012

Our TCE per day rate Average Baltic Panamax 4TC rate

We have consistently outperformed the market in terms of Time Charter Equivalent (TCE) Earnings per day

Mercator Lines (Singapore) Ltd.

Market Review & Outlook

YTD TRIP CHARTER RATES COMPARISON

Per day USD rate in thousands

35 30 25 20 15 10 5
Source: RS Platou

32.8

28.2
24.3 17.7 14.3 12.3 14.3 10.8

YTD 2010 YTD 2011

0 Capesize Panamax Supramax Handysize

The freight rates in 2011 have been significantly low as compared to previous year

DRY BULK ORDERBOOK AND DELIVERY SCHEDULE

Type of vessel Order book ( million DWT) % of fleet New orders (9 month 2011; million DWT) Delivery expected in 2011 (million DWT) Delivery expected in 2012 (million DWT) Delivery expected in 2013 and beyond (million DWT)

Capesize Panamax Handymax Handysize Total Fleet

Source: Clarksons & RS Platou

102.2 67.3 40.7 21.6 231.7

43.4% 45.1% 33.3% 25.8% 39.3%

8.9 6.7 4.0 1.9 21.5

25.4 14.5 11.0 8.4 59.3

50.0 34.9 20.2 10.1 115.3

26.8 17.8 9.5 3.1 57.2

Majority of the delivery expected in 2011 and 2012. The orderbook remains substantially high which will keep the freight rates low in the coming years. However, a reduction of 66% seen in new orders in dry bulk fleet between 9month ended 2010 and 9 month ended 2011

DRY BULK DEMOLITION ACTIVITY

20 18 18 16 14 12 10 10.6 million DWT 5.5 5.8

8
6 4 2 0 2008
Source: Clarksons

2009

2010

2011 (till September)

High demolition activity seen in 9 months of 2011

DRY BULK TRADE

Million seaborne tonnes

1800 1677 1600 1400 1200 1055 1000 800 600 400 250 255 265 200 0
Source: Maersk Brokers

1530 1342 1180 1090 2010

794 815

864

2011f
2012f

300 261 280

Iron ore

Coal

Grains

Steel

Minor Bulk

Demand side continue to remain strong across all categories of drybulk

GDP ESTIMATES & DRY BULK GROWTH

Economy growth rate Estimates
Growth rate in percentage

12 10 8 6 4

10.3

9.5

10.1 7.8 7.5 5.1 2010 4 4 2011 (f) 2012 (f)

Source: IMF

2
0 China India World

Dry Bulk Trade Growth correlated with GDP Growth

GDP growth spurs the trade of commodities

CHINA IRON ORE IMPORTS AND CRUDE STEEL PRODUCTION

In million metric tonnes

80

70
60 50

40
30 20

Iron Ore imports Crude Steel Prodn.

10
0

Source: Bloomberg

Steel production and Iron ore imports continue to remain at healthy levels in China

INDIA DEMAND DRIVER

Upcoming Ultra Mega Power Plants in India

Promoter

Capacity 4000 MW 4000 MW 4000 MW 3960 MW

Location Mundra, Gujarat Sasan, Madhya Pradesh Krishnapatnam, Andhra Pradesh Tilaiyya, Jharkhand

COAL IMPORTS VIS-VIS PRODUCTION

600 500 400 300 Production 200 100 0 43 50 56 66 83 Imports 431 457 493 530 530

Tata Power Company Ltd/Coastal Gujarat Power Ltd Reliance Power Ltd/Sasan Power Ltd Reliance Power Ltd/Coastal Andhra Power Ltd Reliance Power Ltd/Jharkhand Integrated Power Ltd

Major acquisition of Coal assets by Indian Companies in 2010-11

Name of the company Coal asset acquired Galilee basin coal asset Griffin Coal Mining and Carpenter Mine Management Trinitiy Coal East Kalimantan Estimated reserves 7.8 billion tonnes 1.1 billion tonnes 200 million tonnes 100 million tonnes

5 year import CAGR of 18%

Source: Various

Adani Enterprises Lanco Infratech Essar Group Essar Group

India continues to remain a demand driver in dry bulk trade

MARKET OUTLOOK

POSITIVE

NEGATIVE

The overall outlook for the dry bulk shipping market seems to be negative mainly due to oversupply of vessels

Mercator Lines (Singapore) Ltd.

Company Overview

COMPANY HIGHLIGHTS

Fleet

Young modern fleet with average age much below the industry average. Largest fleet owner of geared Panamaxes amongst Indian-Owned Shipping Companies.

Customer base

History of repeat contracts from major customers Blue Chip customer base including Tata Power, Arcelor Mittal Group, Cosco Group, Cargill, Bunge Group and Noble Group The Board and Key Management Personnel have collective industry experience of close to 200 years. Having an experienced in-house technical management company ensures delivery of high quality service to our customers together with minimising operating expenses and maximising operational efficiencies Providing customized logistics solutions from the load port to the point of usage to its customers in India. The Company has won high revenue generating contracts due to this unique advantage

Management

Logistics solutions

OUR STRATEGY

Brazil

Iron Ore

China India Iron Ore

South Korea

Coal Indonesia Coal Australia

Deploy substantial portion of fleet capacity on long term contracts to hedge against freight volatility

Focus on high growth markets in dry bulk trade from China and India

Iron Ore Iron Ore VLOC routes

We specialize in transportation of commodities such as coal and iron ore to and from countries like India, Indonesia, China, Brazil and Australia.

To provide customized end-toend logistics solutions

Leverage strong and continued relationships with existing customers

Mercator Singapore
Ship voyage
Port loading with geared vessels Port unloading with geared vessels
Jetty

Mercator India
Trucks/ Rail
Stock Yard User Site

Coal

Barges

Trucks/ Rail

Together with MLL India, we provide logistics solutions from load port to point of usage to customers.

AWARDS & RECOGNITION

Mercator Lines (Singapore) Limited

Global Entrepreneur of the Year 2010

Emerging India Awards 2010 Singapore 100 Company 2011

Best Investor Relations 2011 (Silver)

Singapore Corporate Awards

Best Annual Report in 2009 (Silver) and 2010 (Bronze) amongst Singapore listed companies
Singapore Corporate Awards

Ranked 38th by NUS and Business Times amongst the public listed companies in Governance and Transparency Index (GTI)

DEMONSTRATING STRONG CORPORATE GOVERNANCE TRACKRECORD

Ranked 18th in overall performance amongst listed shipping companies in the world Marine Money June/July 2011

Winning awards for consecutive three years in a row in the Singapore Corporate Awards emphasizes our drive towards better corporate governance and Investor Relations

Relationships
OUR KEY RELATIONSHIPS
One of the largest iron ore companies in the world

The largest steel manufacturing company of the world

One of the largest power companies in India. Owned by one of the most reputed business groups in the world.

One of the largest commodity trading companies

State owned shipping company in Sri Lanka. Mercator is the first international shipping company to start a logistic project with the upcoming nation of Sri Lanka

OUR OTHER RELATIONSHIPS

FLEET PROFILE
S. No Owned Vessels Type Geared Panamax Geared Kamsarmax Gearless Kamsarmax Gearless Panamax Gearless Panamax Geared Kamsarmax Gearless Panamax Geared Panamax Geared Panamax Very Large Ore Carrier (VLOC) Geared Panamax Gearless Panamax Gearless Panamax Gearless Post Panamax Capacity (DWT) 73,461 82,379 82,459 73,901 74,444 82,273 74,456 69,186 69,221 279,022 73,652 74,483 69,087 93,200 Age (in years) 11 5 5 7 5 5 4 15 15 19 12 4 18 2 Shipyard Tsuneishi Corp, Japan Tsuneishi Corp, Japan Tsuneishi Corp, Japan Jiangnan, China Hudong, China Tsuneishi Corp, Japan Hudong, China Tsuneishi Corp, Japan Hashihama, Japan Yiulian Yark, China Imabari Shipyard, Japan Hudong, China Imabari Shipyard, Japan New Yangzijiang, China Bk Value (USD M) 27.06 50.94 53.39 41.97 48.77 51.14 51.17 51.08 52.11 73.79 24.72 35.85 20.09 44.35
Panamax Fleet Average Age: 7 years

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Prem Aparna Prem Varsha Prem Veena Gaurav Prem Garv Prem Prem Vidya Garima Prem Kesari Prem Kanak Prem Prem Putli Kalpana Prem Gauri Prem Aarti prem Chitra Prem

S. No 1 2 3

Chartered vessels Chaitali Prem Chanchal Prem Maria Laura Prem

Type Gearless Post Panamax Gearless Post Panamax Gearless Post Panamax

Capacity (DWT) 93,312 93,270 91,800

Age (in years) 2 2 1

Country Built China China South Korea

Charter Period Sep 2009-Sep 2014 Oct 2009-Oct 2014 Jul 2010-Jul 2020

FLEET DIVERSIFICATION
DIVERSIFICATION BY TYPE
PANAMAXES (GEARLESS) Gaurav Prem POST PANAMAXES Chitra Prem Chaitali Prem Chanchal Prem Maria Laura Prem KAMSARMAXES Prem Veena Prem Varsha (Geared) PANAMAXES KAMSARMAXES (GEARED) Prem Aparna Kesari Prem VLOC Prem Putli

Garv Prem
Aarti Prem

Prem Vidya (Geared)

Kanak Prem
Kalpana Prem

DIVERSIFICATION BY DEPLOYMENT
CONTRACT OF AFFREIGHTMENT Geared Panamaxes/Geared Kamsarmaxes TIME CHARTER Geared and Gearless Panamaxes/Geared Kamsarmax/Post Panamaxes BAREBOAT CHARTER Gearless Panamax CONSECUTIVE VOYAGE CONTRACT VLOC

DIVERSIFICATION BY CARGO

5%

Total cargo carried of around 2.6mn tonnes in Q2 FY 2011-12

38%

Iron ore Others Coal

41%
11%

Grain

RISK MANAGEMENT

FREIGHT VOLATILITY
- Around 60% of contracted vessel days - Forward Freight Agreements (FFAs)

BUNKER FUEL COSTS

- Appropriate Bunker adjustment factor in all long term voyage charter contracts
-Bunker cost borne by Charterer in Time Charter Contracts

Multifaceted risk management strategy attuned to market volatility

CURRENCY RISKS
- Income, expenses and reporting in USD

ACCIDENT RISKS
- Insured all vessels adequately

- Successful implementation of safety management practices

MOVING FORWARD
Q3 FY20 12 coverage about 66% with contracted per day TCE rate of around USD 24,500 Staggered charter-out expirations minimize charter renewal risk

Long term charter coverage

Strong counterparties

End-user creditworthy counterparties (Vale, Arcelor Mittal, Tata, COSCO)

Niche young fleet

Average Panamax fleet age of 7 years Geared panamaxes

Strong balance sheet

Zero capital commitment as of September 2011 Three unencumbered vessels Allows opportunistic expansion

Business strategy

Ensures revenue visibility Exposure to growth in India and China

GLOSSARY

Contract of Affreightment (COA)

Under a COA, the ship owner provides capacity to transport a certain amount of cargo within a specified period from one place to a destination designated by the customer. Typically all of the ship`s operating, voyage**and capital expenses are borne by the ship owner. Freight rate normally is agreed on a per cargo ton basis.

Consecutive Voyage Contract (CV)

Under a CV, the ship owner provides capacity to transport a certain amount of cargo on a consecutive voyage basis over the contract period. Similar to a COA, all of the ship`s operating, voyage**and capital expenses are borne by the ship owner and freight rate is agreed on a per cargo ton basis.

Time Charter (TC)

A charter under which a vessel is chartered to a customer for a fixed period of time at a rate that is typically fixed. The charterer pays all voyage costs. The owner of the vessel receives monthly or semi monthly charter payments on a per day basis and is typically responsible for providing the crew and paying all vessel operating expenses(including maintenance, repair and docking) and capital costs of the vessel.

Time Charter Equivalent (TCE)

A standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company`s performance despite changes in the mix of chartered types.

**Voyage Expenses - Expenses incurred due to a Vessel`s travelling from a loading port to a discharging port, such as fuel(bunker) costs, port expenses, agents` fees, canal dues, extra war risk insurance and commissions.

Mercator Lines (Singapore) Ltd.

THANK YOU

Investor Relations Contact: Ms. Cindy Vaithilingam Tel: +65 6220 9320 Email : ir@mllsg.com