Broström Q2 Presentation 2008Lennart Simonsson, CEOAnders Dreijer, Deputy MD

27 August 2008

Q2 Report 2008

Sida 2

Agenda

• Welcome!

• Q2 2008 in words

• Q2 2008 in figures

• Fleet development

• Market trends

• Summary and Outlook 2008

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Sida 3

Q1 in words

• Volatile and weak freight market during most of the second quarter 2008

– European traffic experienced a weak start to the second quarter, which ended with an improvement primarily for large tonnage.

– Atlantic traffic basically followed the same market pattern as European traffic.

– For large tonnage in Asian traffic, the freight market was relatively weak during essentially the entire second quarter.

– Small tonnage in Asian traffic had continued stable development.

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Q1 in words

• Change in transport capacity during the second quarter

– The BRO ERIK (37,000 dwt) was delivered to Broström's partner in May 2008.

– The CPO FRANCE and the CPO SWEDEN (both 37,000 dwt) were delivered to Broström's partner Claus-Peter Offen. The vessels are now trading in Broström’s European sector.

– The EXCELLO (19,500 dwt) was delivered to Broström's partner Donsötank and is now operating in Broström’s European sector.

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Income Statement

April-June Jan-June2008 2007 SEK m 2008 2007

912 915 Net sales 1 784 1 841214 400 EBITDA 369 701117 302 EBIT 176 520

73 247 Profit after financial items 75 41966 107 - of which dissolution of neg goodwill and capital gains 66 10971 236 Net profit 77 386

1.12 3.60 Earnings per share, SEK 1.21 5.86

ROCE 4.9% 15.5%Cash flow/share 3.24 8.75

Dividends paid 191 258Repurchases of treasury shares 12 85

Free cash, end of period 703 993

*) from operatings activities before dividends

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Broström – a global logistics company

66 vessels in European trade

23 vessels in Asia

9 vessels in the Atlantic

98 vessels

+ 7 vessels to be added within next 12 months

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Fleet Growth

Acquired and newly delivered vessels in 2008

Name Built Dwt Owner-

Ship * Partner

BRO ANNA 2008 17,000 100%

BRO AGNES 2008 17,000 100%

CPO FRANCE 2008 37,000 C/M Offen

CPO SWEDEN 2008 37,000 C/M Offen

GAN-SABRE 2008 51,000 C/M Dünya

EXCELLO 2008 19,500 C/M Donsötank

C/M = Commercial Management

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Fleet Growth

Newbuildings on order on 30 June 2008

Name Delivery Dwt Ownership Partner

BRO ALMA 2008 17,000 100%

GAN-SKY 2009 17,000 C/M Dünya

CPO GERMANY 2008 37,000 C/M Offen

CPO NORWAY 2008 37,000 C/M Offen

CPO RUSSIA 2008 37,000 C/M Offen

CPO ITALY 2008 37,000 C/M Offen

CPO FINLAND 2008 37,000 C/M Offen

CPO ENGLAND 2008 37,000 C/M Offen

NB 386 2009 7,500 50% Thun

NB 387 2009 7,500 50% Thun

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Broström’s Market Segments

SMALL 13 vessels 4 vessels = 17 vessels5,000 - 10,000 dwt incl 2 NB incl 2 NB

INTERMEDIATE 43 vessels 5 vessels = 48 vessels10,000-30,000 dwt incl 1 NB incl 1 NB

HANDY/MR 9 vessels 17 vessels 14 vessels = 40 vessels30,000-60,000 dwt incl 4 NB incl 4 NB

ATLANTIC EUROPE ASIA PACIFIC

= 9 vessels = 73 vessels = 23 vesselsincl 7 NB

A total of 105 vessels incl 7 newbuildings

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Market Trends

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Oil Price

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US Gasoline Stocks

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Spot Market Earnings

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US market impact from high oil prices

• Miles driven in the US has declined with year-on-year negative growth in 2007/2008

• A contraction in miles driven has historically not been seen even during recessions (1990/1991 and 2001/2002)

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US market impact from high oil prices

• Less gasoline purchased as prices increase in the US market

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Developments in Global consumption of oil

Source: IEA August 2008

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Surplus value of the Broström fleet

• Market valuation of

– Existing vessels

– Newbuilding contracts

• Average based on two external brokers

• As per 30 June 2008 the market value exceeded book value by approximately SEK 2.3 billion

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Outlook 2008

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Outlook 2008

• The market improvement – primarily for large tonnage – that took place at the end of the second quarter continued into the third quarter of 2008.

• Broström's strategic position for 2008 and onward has been strengthened through acquisitions and investments made in recent years.

• The trend in transport for the years immediately ahead in Broström's market segment is currently difficult to judge.

• A large volume of new tonnage will be added to the market.

• The high price of oil has brought about a greater urgency to reduce dependency on oil and growth forecasts for oil consumption have been adjusted downward.

• Broström believes that major fluctuations will take place from period to period in both transport volume and freight rates.

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The Broström Brand

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The Broström Brand

• Broström’s increasing focus on large, global customers asks for a global brand that is built on trust and credibility

• Branding is a crucial success factor in our industry

• The Broström brand embraces everything the customer experiences and expects from doing business with us

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The Broström Brand

• The Broström Brand – our most valuable tool in our continued business development

• There is a strong connection between a strong Brand and a good

financial performance

• Having clear strategies and working for common goals are fundamentals when building a Brand

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• Our ”first” Brand Project was initiated in 1998 and a new Brand platform was introduced the same year

• The power in an organisation that works for common goals is enormous

• An organisation with no clear direction can be a disaster

The Broström Brand

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Sida 24

Who we are What we say

What we do

…as easy as raising a child!

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Mission

Vision

Individualvalues

Core values

Brand promise

Strategy

Goals

Actions

Plans

All vital brand ingredients revised – and linked to our existing key strategies – to provide “One Clear Direction”!

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The Mission – our business concept. What we are here for.

The Vision – our ultimate objective – where we are going and

how we want to be perceived in the future.

The Strategies – principle directives for how we should get

there. The compass.

The Core Values – the basis for our corporate culture; ”how we do things in our company”. The ”heart and soul” of our brand

The Goals – measurable objectives i.e. “step stones” on the

way to realize our ultimate objective, the vision.

Broström´s definitions

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Sida 27

Our mission

“Broström offers competitive

logistics solutions to the oil and

chemical industry, focusing on

industrial tanker shipping and

marine services.”

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Our vision

”To be recognized as the most

attractive logistics service

provider based on performance,

reliability and respect.”

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Key strategies

• Broström will lead the development of logistics solutions primarily for the oil and chemical industry by meeting its customers’ service needs.

• Broström will grow by increasing contract volumes, developing new markets, and acquiring companies.

• Broström will lead the market in terms of quality, safety and environmental care.

• Broström’s production will be cost-effective and improved continuously.

• Broström will develop improved logistics solutions for its customers through its strategic alliance with Vopak.

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Our core values

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Reliability

• Highest possible safety standards

• Keeping promises

• Responding quickly

• Co-operating with transparency

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Respect

• Open-minded attitude

• Treating people as experts in their own field

• Recognise integrity of individuals

• Concern for the environment

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Excellence in performance

• To be regarded as experts in our field… delivering solutions to our customers and partners, that enables them to stay ahead.

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Financial objectives

• Growth

– Average annual growth in net sales

– 10% per year over a three years period

– Average annual growth in commercial activities (measured as net sales including partners)

– 20% per year over a three years period

• Roce

– Minimum of the average of past three years’ interest for 10 year US Government Bond plus a risk premium of 5%

– For 2007 the objective is 9.4%

• Equity/assets ratio (II)

– Above 30%

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Our Brand Promise

Going for Excellence. Together.

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Business Strategy

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World Economic Outlook

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World Oil Demand2008 estimate; 100% = 87.2 mbd

N America29%

Europe18%

FSU5%

China9%

Other Asia11%

M East8%

Other 20%

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World oil demand

• World oil demand has increased each year the last 20 years with the only exception of 1993

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Global Oil Product Demand

• IEA cut its 2008 forecast from 2.0% to 1.4% due to the poor condition in American economy and high prices. It was the largest cut in forecast since 2001

1,2%

1,3%

1,4%

1,1%

1,2%

1,2%

1,3%

1,3%

1,4%

1,4%

1,5%

2006 2007 2008E

Wo

rld

Oil

De

ma

nd

Gro

wth

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Sida 42

Rapid Pace of Dieselization Continues in Europe

Source: Cambridge Energy Research Associates

50303-3

European products oil imports

3.63.84.04.24.44.64.85.05.25.45.65.86.06.2

1988

1989

1990

1991

199219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

06

mbd

• Mismatch between refinery output and oil product demand creates need for evening out regional supply imbalances

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Europeisk obalans i försörjning av oljeprodukter

• Europa har överskott på bensin samt underskott på diesel och flygbränsle

• Det mesta av överskottsbensinen exporteras till USA

• Eldningsolja och diesel importeras främst från Ryssland

• Underskottet på flygbränsle täcks främst genom import från Mellanöstern

Flygbränsle

Diesel

Bensin

Överskott

Underskott

Källa: Neste Oil

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World oil consumption and refinery capacity

mbd

Source: IEA/Intertanko

30

40

50

60

70

80

90

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

Oil consumption

Refinery capacity

Sources: BP review until 2004+1.8% increase oil consumption 2005-2009Increase refinery capacity, Petroleum Economist

Oil product supply is tight!

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World refinery development

mbd

Source: BP Review/various

0

4

8

12

16

20

24

65 68 71 74 77 80 83 86 89 92 95 98 01 04 07 10

N America

S/C America

Europe

FSU

M. East

Africa

Asia Pacific

Source: BP Amoco.June 2005/Various

Bulk of added refinery capacity is located to Asia and the Middle East

More of refined products will be supplied by regions further away from consumers and be transported over longer distances to get to the end-user

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Vessel Values

• Contributors to maintained strong vessel values

– Steel prices

– Strong dry bulk tonnage demand

– High ship yard capacity utilisation

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Ship Values

Newbuilding Prices & Shipvalues

0

10

20

30

40

50

60

Jan-

02M

ar-0

2M

ay-0

2Ju

l-02

Sep-

02N

ov-0

2Ja

n-03

Mar

-03

May

-03

Jul-03

Sep-

03N

ov-0

3Ja

n-04

Mar

-04

May

-04

Jul-04

Sep-

04N

ov-0

4Ja

n-05

Mar

-05

May

-05

Jul-05

Sep-

05N

ov-0

5Ja

n-06

Mar

-06

May

-06

Jul-06

Sep-

06N

ov-0

6Ja

n-07

Mar

-07

May

-07

Jul-07

Mill

ion

US$

47,000 dwt - NB contract47,000 dwt - NB resale 45,000 dwt - 5yr 45,000 dwt - 10yr 45,000 dwt - 20yr

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-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

2004 2005 2006 2007 2008 est 2009 est 2010 est 2011 est 2012 est

An

nu

al f

leet

ch

ang

e

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

Wo

rld

fle

et (

mill

ion

dw

t)

Annual fleet change (%) Total million dwtSource: Clarkson May 2008

World Tanker Fleet Development (<60 kdwt)

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Ice Trading Conditions

23 March 2008 Normal mid March

An exceptional mild winter in the Baltic

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Small & Intermediate (number of vessels)

0

10

20

30

40

50

60

70

No

of

ves

sels

, in

cl N

B

Small (5-10 kdwt) Intermediate (10-30 kdwt)

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Medium Range (MR) & Handy (number of vessels)

0

10

20

30

40

50

60

70

80

90

100

No

of

vess

els

MR&Handy (30-60 kdwt) existing MR&Handy (30-60 kdwt) on order

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Consolidation Through Tanker Pools

Shipowner/Pool memberMarida Pool 10-30 kdwt

Swift Tankers 10-30 kdwt

Handytankers 30-60 kdwt

Norient Product Pool 30-60 kdwt

High Pool Tankers

30-60 kdwt

Glenda International Management 30-60 kdwt

Clean Products International 30-60 kdwt

D'Amico (Italy) X X XDS Norden (Denmark) XGlencore XHarren & Partner XInterorient Navigation (Cyprus) XMaersk/AP Möller X X XMitsubishi Corp (Japan) XMotia (Italy) XNissho Shipping (Japan) XOSG XSeaarland (Netherlands) XTeekay XUltragas/SONAP (Chile) X

TOTAL NO OF VESSELS 16 19 85+1 45+39 8+4 11 6

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Broström’s track record in market consolidation

• Broström has contributed to considerable market consolidation through company acquisitions and partnerships:

– United Tankers/Erik Thun (1990)

– Rederi AB Donsötank (1992)

– Van Ommeren Tankers (1998)

– Rigel Schiffahrts (2000)

– Dünya Shipping (2005)

– Nordtank Shipping (2005)

– Furetank Rederi (2005)

– Claus-Petter Offen (2007)

• An expansion into Small and Intermediate (5-20 kdwt) tonnage in Asia has been part of Broström’s strategic planning and resulted May 2007 in the acquisition of The Petroships Group, re-named to Broström Tankers Singapore

• At year-end 2007 Broström operated a fleet of 22 vessels in Asia, compared with 9 vessels at year-end 2006

• Opportunities for further consolidation are being continuously evaluated