ONE Business Updates
7th July 2023

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AgendaBusiness Overview

ONE’s Strategy Update

2

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Business Overview

3

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ONE’s Journey
5 years has passed since Day 1 of establishment
Announcement of K-Line, MOL, NYK
container business consolidation

Achieves cost reductionof $1 billion

Start SalesPromotion

THEA expansion
COVID-19 challenges
Overcomes impacts on operation

Phase 12016201720182019

2020

2021

2022

“Integration & Establishment”
Establishmentof ONE

4Achieves full year
black ink FY2019
Commencement of services‘Teething’ problems
Experiences losses due to start up difficulties
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ONE’s Global Network
Today, ONE's global network currently serves over 28,000 customers in 120 countries, providing thefoundation for economics to function

EUROPE

Asia Europe
11 weekly
services

ASIA(including
Middle East)
Intra Asia
80 weekly
services

Intra Europe
21 weekly
services

AFRICA
Africa14 weeklyServices

5OCEANIA

AsiaNorth America
22 weekly services

NORTH
AMERICAEurope
North America
6 weekly services

Intra Americas
3 weekly services

Oceania
10WeeklyServicesAsia
Latin America
5 weeklyservices

LATIN
AMERICA

IntraLatin America
5 weeklyservices

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ONE’s Key Success Factors since Day 1

6Operational
Efficiency

Economyof Scale

Competitiveness(Profitability)

Investing in people

7th Largest Carrier

Top tier profitability

and processes to develop
high-performing teams with along-term viewlarge enough to survive butsmall enough to effectively
serve global markets

among industry peers

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Financial Overview
Remarkable financial performance in recent years
Net Profit/Loss from Day 1 to FY2022(Figures in USD mil)
16,75614,997

3,484
105-586

FY2018

7FY2019

FY2020

FY2021

FY2022

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ONE’s Achievement
As a result of its approach, ONE achieved top tier profitability and ranked #7 globally in terms ofscale
Profitability of major lines (CY2022 Jan-Dec)

Capacity of major lines (Jan 2023, kTEU)

Operating capacity
1,000,000 (TEU)

Net profit margin (%)

On OrderCurrent capacity

#180

#2
Liner E

60404,058#4

Liner C
Liner D

4,605

#3ONE

Liner B

Liner A

Liner F

3,756

#52,160

#6

2,128

#7

1,947

1,529
1,000

#820
Liner G00

5,000

10,00015,00020,000Top tier profitability

25,00030,000Net Profit#9707#10912#11714

#12

6,328

385

#7 Scale

Source: IR data announced by each company, Alphaliner
8Copyright © Ocean Network Express Pte. Ltd. All Rights ReservedKey Business Developments
Vessels
Further upgrades to come with wide variety of vessels scheduled for delivery by 2026
Fleet investments and commitments

9Investing in newbuildings

Phase inSize TEU

No. of Vsl

FY202012K

4FY2020-2115K

4

FY202212K

4FY202315K

4FY202324K

6

FY202415K

6FY20247K

10FY202513K

10FY2026

13K

10ONE has actively expanded its core fleet to meetcustomer demand for future sustainable supplychains. These investments are part of ONE’s green
strategy and decarbonization plans.

Copyright © Ocean Network Express Pte. Ltd. All Rights ReservedKey Business DevelopmentsTerminals
Investments in key terminals are progressing
Singapore
Magenta Singapore Terminal✔ Joint venture with PSA Singapore✔ Inaugurated on May 2019

US West Coast
Yusen Terminals LLC (51%) /TraPac LLC (51%)✔ Entered definitive agreement in December 2022
✔ Transfer scheduled during 2023

Acquisition
Atlas Corp.
✔ Completed the acquisition and go private transaction on Atlas Corp.

(the owner of Seaspan Corporation) together with partners

10Copyright © Ocean Network Express Pte. Ltd. All Rights ReservedKey Business Developments
Equipment
Enhanced service quality and customer experience
Container and New Technology✔ Stable investment for container boxes
TypeNewbuild Investment (2018-2023 Q1)

Dry850 k units

Special6 k units

Reefer147 k units✔ In June 2023, ONE announced plans to install telematics devices
in its reefer boxes to provide customers with greater visibility intocargo

SafetySafety continues to be our key agenda
Vessel Safety Campaigns
Annual safety campaigns for our operating vessels✔ Sharing best practices and safety initiatives among the fleet✔ Continuous cultivation of safety culture among shore and sea
11Copyright © Ocean Network Express Pte. Ltd. All Rights ReservedKey Business Developments
Environment
There are already environmental measures in place, including decarbonization
ONE Green Initiatives✔ Achieved over 50% carbon intensity improvement in 2022 (against base year of 2008)✔ Ongoing projects under the partnership of the Global Centre for Maritime Decarbonization (GCMD)✔ Green Investment on track(20 methanol/ammonia-ready vessels for delivery in 2025/2026, Installation of Bow windshields, etc.)

Bow windshields
12

Biofuel Trial as part of GCMD pilot project
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ONE’s Strategy Update

13
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Introduction of “Sustainable Growth”

Phase 1
2016

2017

2018

2019

Phase 2
2020

2021

2022

“Integration & Establishment”• Successful integration and establishment• Achieved Top-tier profitability with a net

profit of USD 34.5 billion within the first fiveyears“Sustainable Growth”• Long term contribution to broader

stakeholders• Grow sustainably as a global social

infrastructure• Commitment to industry decarbonization

14

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ONE’s strategy update
1. ONE achieved global top-tier profitability within 5 years of its establishment

KeyHighlights

2. ONE is shifting gears towards "Sustainable Growth”, working to become one of theworld's leading container shipping companies
3. ONE plans to make necessary investments to achieve "Sustainable Growth"Committed toproviding highquality and safe
global shipping
services

Enhance
operational
efficiency

Maintain andenlarge fleet
capacity tocapture market
organic growth

Invest in green
and digitaltransformation

Promote astrong
corporate
culture andtalent pool

Achieve highfinancial
performanceand stability

Long-term contribution to broader stakeholders
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Maritime industry outlook
ONE expects changes in the trade environment with an increasing requirement for decarbonization
while demand will grow in the long run
Demand growth

Trade diversification

Container cargo [100Mn ton]

Decarbonization
Top 5 issues in Maritime industry in 2022

20.0
18.0 18.0 18.5

18.5

16.0

6.4%
13.5 14.5

15.5

4.0

4.0 4.5 5.0 5.0

1995

5.5

8.5

New Environmental Regulation

3

Global Economic Crisis

4Pandemics

5

Societal Demands for Sustainability

6.5

2000

2005

2010

2015

Mid-to-long term container demand ispredicted to rise steadily

Investment withlong-term strategic perspectives
162

11.5

10.0
7.0 7.5

Decarbonization of Shipping

16.5

12.5

12.0 12.0
10.5

15.0

12020

Diversification of global cargo flow

Respond to diversifying global
trade patterns with sufficient scaleand partnership

Decarbonization is the top agendaof the industry

Going green as the nextcompetitive pillar

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Financial Stability
As the container shipping market remains volatile, ONE believes that financial stability can beachieved through the combination of a stable business portfolio.
High volatility ofContainer Shipping

Stable profit fromContainer Shipping Value Chain

EBITDA0EBITDA

Combining and creating synergy
among multiple business will
create improved financial stability

TimeTraditional container shipping
business is exposed to a highly
volatile market environment

Time

Various businesses which could
earn stable profit with lessvolatility

EBITDA

0170Time

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ONE’s Key Success Factors since Day 118OperationalEfficiency

Economyof Scale

Competitiveness(Profitability)

Investing in people

7th Largest Carrier

Top tier profitability

and processes to develop
high-performing teams with along-term viewlarge enough to survive but
small enough to effectively
serve global markets

among industry peers

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“Sustainability” as ONE’s New Key Success Factor
Investing into Sustainability as new pillar of competition

Operational
Efficiency

Continue toimprove our major
competency

19X

Economyof Scale

SecureEconomy of ScaleX

Sustainability

Sustainable
CompetitivenessDecarbonization
Financial stability
Sustainable organization

Sustainable
GrowthCopyright © Ocean Network Express Pte. Ltd. All Rights Reserved

Growth Strategy
Develop a stable business portfolio that allows for growth in the Container Shipping business withlow volatility

Sustainable Growth
Container Shipping
Operational
Efficiency

Economyof ScaleSustainability

ONE talentenhancement

Core Asset
Investment
low/zero carbon
technologies
on vessels

Container Shipping Value Chain
Digitalizationof operation

High-quality
service &customer
satisfaction

Reinforcementof container
shipping global
network

Expansion intoadjacent businessleveraging ONE’s globalnetworkEnvironmental
Conservation

ExamplesStabilize financial basewith diverse businessportfolio• Atlas Corp., the owner of Seaspan Corporation• Terminal investment in strategic ports such as U.S West coast

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ONE’s Growth Strategy
ONE’s Growth Strategy, supported by 5 strategic pillars
Sustainable Growth
Growth Strategy

Container Shipping

Container Shipping Value Chain

capturing growth of the industry

building a sustainable business portfolio

12Green Strategy
34

Talent Strategy
21Digital Strategy
5Finance Strategy

Global StrategyCopyright © Ocean Network Express Pte. Ltd. All Rights Reserved

Green1 Green StrategyTalent

DigitalFinance

GlobalONE’s Vision, Mission, and Targets for decarbonization and environmental measures
Green Vision
To be a global leader in the realization ofenvironmentally sustainable shipping

Decarbonization targets

Green Mission
ONE will achieve carbon net-zero
shipping in order to protect our planet via lean andagile best practices and open collaboration

Environmental Compliance

Emissions intensity:
To Reduce scope 1 GHG emissions by 70% (1) per
TEU km by 2030

Ship recycling:
Ensure partner yards comply with the highest
internationally-recognized standards

Absolute emissions:
Achieve net-zero GHG emissions (including scope 2& 3) by 2050

Environmental conservation:
Ensure ZERO significant spills for all vessels

Note: (1) –Vs 2008 base line. Representing a reducing 35% by 2030 from the 2018 base line. GHG = Green House Gas.
22

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Green1 Green Strategy

TalentDigitalFinance

GlobalVarious measures are on track, and actively progressing as planned

reduction of CI(from 2008 to 2022, g/TEU-km)

B (2022)

Environmental
initiatives>50%

Status and progress in 7 key initiatives

Decarbonization initiatives

Current major achievement
1GreenInvestment• 20 methanol/ammonia-ready vessels for delivery in 2025/2026

2

AlternativeFuels

Various projects and discussion involving external industry partners (e.g.,Study of alternative fuels)

3

CarbonManagement• ONE Eco Calculator for customers released

4

Operational
Efficiency• Core operating systems are continuously upgraded5

Ecosystem
Building

Participation in and sponsorships of various industry movements(e.g., Collaboration with GCMD(1))

6Ship
Recycling

Preparation of sustainable and transparent ship recycling

7

Environmental
Active participation in ecological conservation programsConservation• Installation of Bow windshields• Study of CCS installation• Vessel operation system to manage CII ratings

Note: (1) Global Centre for Maritime Decarbonisation
23

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Green1 Green Strategy

TalentDigitalFinance

GlobalTransitioning ONE's fleet towards decarbonization
Introduction of Zero Emission Capable Vessels
Carbon Intensity Improvement through Enhancement of Operational Efficiency
By 2035

By 2030[% TEU basis]

First alternative fuelcapable vessels deployed

Net-zero emissions
through biofuels andcarbon offset for remaining
conventional fleet

Zero emission capable vessels
covering >20% of our fleet
capacity

1008060402002030

2035
Zero Emission Capable Vessel

2040

2045

2050

Conventional Fuel Vessel

Roadmap will be continuously reviewed based on technology development, industry regulations and voices of stakeholders
24

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Green2 Digital Strategy

TalentDigitalFinance

GlobalONE's new digital strategy will focus on collaboration with partners, capturing the latest trends andcreating new value
Operational Excellence

Ecosystem Enhancement

Channel digitalization

ONE aims to deepen collaboration with ourexternal partners to make changes that cannot
be achieved alone

Operation digitalization

Industry DXand more...

Digital enabled new services

Digitalization Foundation
In-house development resources

Digital Technology Trends
Constantly updating our strategy by harnessing
the latest trends in digital technology
Data Driven Enterprise

Lean & Agile corporate culture25

New Value
Creation
Using our digitalproblem-solving
expertise, we envision
creating new value
chains andtransforming businessmodels acrossindustries

AI/Machine Learning

IOT TechnologyCopyright © Ocean Network Express Pte. Ltd. All Rights Reserved

Green3 Talent StrategyTalent

DigitalFinance

GlobalONE aims to attract a diversified talent pool and nurture our employees' development in a way that
benefits them and the world
ATTRACT TALENTDEVELOP TALENT

Our primary asset and a directcontributor to ONE’s corecompetencies

Right opportunities – Diversified
learning & multiple career pathways

Interns

Students/
Graduates

Experienced
professionals

Functional
experts

My ONEGreatPlace

Leadershipprogram

Mentorshipprogram

Functional
competency
program

Cross-country
assignmentsRETAIN TALENT
Competitive
total rewards
26

Diversity, Equity& Inclusion

Employee Engagement &Experience enhancement

Holisticwellbeing
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3 Talent Strategy – Example: ONE ACADEMY
Objectives

GreenTalent

DigitalFinance

GlobalKey Pillars#1Enhance leadership, soft skills, and functional expertisetraining#2

Build strong connections and a sense of belonging bystrengthening culture‘ONE’
Communication
Strengthencommunications‘ONE’
Connectedness
Rebuildconnections‘ONE Learning &Development’
Empowerself-development‘ONE Careerand Mobility’Nurture growth
opportunities

Initiatives (examples)27

1-1 Mentorship Program

ONE Immersion Program

Encourage personal andprofessional development bytapping into the experience ofcross divisional leaders

Develop strong network throughexperiential learning
opportunities, collaborating withindustry experts to solve realbusiness challenges

Leadership &Communication training

Cross-country &cross-functional rotations

Informal gathering &team bonding with leaders

Groom future leaders by learningessential skills to be successful atwork and accelerate career path

Gain valuable team experience,grow strong networks andexpand horizonsStay connected, gain innovativeideas and solutions from leaders
through casual conversations

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Green4 Finance Strategy

TalentDigitalFinance

GlobalMaintaining sound financial strength is a foundation of ONE's business

Finance Strategy

Solid & diversified
funding base

• Secure a robust financial structure• The appropriate use of financial leverage will be considered for future investments to achievesustainable growth• Acknowledging the high volatility of the liner business and the significance of a more consistent
Financial Stability

profit, ONE will strive to stabilize the company's financial performance.

• Long-term ROE target of 10%

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Green5 Global Strategy

TalentDigitalFinance

GlobalAs a response to global trends and diversified customer needs, ONE will further enhance its network,
efficiency, and quality of service
Global Strategy

Pursue efficiency
and provide highquality of service• Identify key regions with growing cargo flows• Strengthen customer support globally to meet changing demands• Increase efficiency and meet customers' diversified and specialized needs through digitization

Inspire new values• Discover new business opportunities with access to our extensive global network, digital
through global
resources, and expertisenetwork

29

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