LEIF HEGH

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LEIF HÖEGH CO.
Presentation 10.04.2003
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LEIF HÖEGH CO.
Part 1 Market
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World vehicle movements 2002
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Factory-new cars light commercial vehicles,
plus 2nd hand vehicles (estimated)
Ex N America 0.4 mill.
Ex Europe 1.8 mill.
Ex Japan / Korea 6.5 mill.
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1900
900
2825
150
550
80
To N. America
80
300
75
200
40
To S. America
350
370
120
580
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Global car production is expected to grow by
19.5 from 1999 levels
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World PCC/PCTC fleet - age composition
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Age distribution of world PCC / PCTC fleet
Including confirmed NB contracts
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• 2003 437 vessels
• 2008 472 vessels
• 72 NBs confirmed
• No scrapping 2002

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PCC/PCTC supply/demand balance
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O V E R C A P A C I T Y
U N D E R C A P A C I T Y

• 72 newbuildings are confirmed to be delivered
  2003-2005.
• The balance is based on volumes as estimated
  autumn 2002.

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LEIF HÖEGH CO.
Part 2 HUAL
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HUAL has a strong presence in all important
Ro/Ro markets
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as well as a modern and flexible fleet
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• HUAL operates 45 deep-sea ro/ro vessels at any
  given time
• 27 vessels are owned or chartered on long-term
  T/C
• Remaining on short or medium term charters

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and trade systems that span the globe
US - Europe
Far East - Caribbean/ USEC/US Gulf
Far East - Europe
Europe - Middle East
To North America
Europe - Far East
US - Middle East
Europe - Caribbean/US
To South America
Europe - West Africa
Far East - South America
US - Africa
Europe - South Africa / Australia
Japan- New Zealand (KIWI)
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offering excellent services and frequencies
USEU 24
To North America
FEUS 36
EUME 24
EUFE 24
EUWA 14
USME 24
EUCA 24
To South America
FEEU 36
KIWI 36
USAF 12
FESA 12
EUAF EUAU 30
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Far East Outbound trades - 2002
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Total volume 365,000 CEUs
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Europe outbound trades - 2002
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Total volume 490,000 CEUs
Europe - Caribbean 57,000
Europe-Middle East 135,000
Europe - Africa/Australia 205,000
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US outbound trades - 2002
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Total volume 201,000 CEUs
US- Middle East 148,000
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HUALs cargo portfolio is diversified, both in
terms of cargo composition
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and customers
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General Motors Ford DaimlerChrysler Caterpillar De
ere Co. Bayliner etc. etc.
DaimlerChrysler BMW Renault/Nissan PAG
(Ford/Volvo/LR/Jaguar) Peugeot/Citroën VW etc.
etc.
Nissan Subaru GM DAT (Daewoo) Komatsu Kobelco Hita
chi etc. etc.
Europe Outbound 490,000 CEUs
Far East Outbound 365,000 CEUs
North America Outbound 201,000 CEUs
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KIWI Car Carriers
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• Major player in Japan-New Zealand used-car trade
• Profitable company
• Strong infrastructure and systems for shipping
  used vehicles, including 4 Terminal Receiving
  Stations in Japan
• Transfer of know-how sharing of best practices
  in POV trade
• Potential for significant synergies with regard
  to
• Trade pattern
• Tonnage
• www.kiwicar.com

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CETAM services
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2002 transportation volume 275.000 car
equivalents

• CETAM currently operates five
• separate services
• Between Turkey and France/Spain
• with 2 sailings per month
• Between France and Tunis
• with 3 sailings per week
• Between Santander, Le Havre, Zeebrugge, Teesport,
  Newcastle, Amsterdam, Le Havre, Santander in
  joint operation with EMC Amsterdam.
• Between Southampton and Santander with one
  sailing per week
• Between Barcelona, Marseilles and Algiers with
  one sailing per week

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HUALs Caribbean service
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Deep-sea service ex US
Deep-sea service ex Far East
Deep-sea service ex Europe
USA
Dominican Republic
Mexico
Guadeloupe
Jamaica
Puerto Rico
Martinique
Venezuela
Costa Rica
Colombia
French Guyana
Guyana
Surinam
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HUAL highlights 2002
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• First full year with Kiwi under LHC ownership
• Record volume (66,000 CEUs), good financial
  results
• Contracts for 3 PCTC newbuildings for delivery
  2005
• Contracts for long-term charters of 3 PCTC
  newbuildings for delivery in 2003
• Contract for Airbus newbuilding at Jingling
• HUAL EUROPE grounding Oct. 1, later declared
  total loss

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HUAL highlights 2003 - so far
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• Nissan contracts to Europe and North America
  renewed from 01.04.2003
• GMDAT contract Korea-Europe fixed for 2 years
  from 01.01.2003
• Purchased KIWI BREEZE in order to ensure stable
  tonnage supply to Kiwi
• Main challenge going forward
• Market imbalance between European inbound and
  outbound trades and impact for availability of
  tonnage to serve European auto industry

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Market trends HUAL trades
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• FAR EAST OUTBOUND
• The recovery of main HUAL customer Nissan
  continues
• Ambitious growth plans, significant export
  volumes from plants outside Japan USA, UK,
  Spain. China likely to follow.
• GMDAT consolidating and gearing up for export
  growth
• Europe, North South America
• Record NZ import of used vehicles, strong
  performance by Kiwi
• New foothold in China generates exports and
  imports
• Breakdown of Conference car carrying arm no
  impact for HUAL short/medium term
• EUKOR Based on external and internal studies,
  EUKOR will require substantial replacement
  tonnage during the coming 1-5 years

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Market trends HUAL trades
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• EUROPE OUTBOUND
• Strong growth in European vehicle exports
  expected to continue
• HUAL enjoys a strong position and market shares
  in the most profitable trades ex Europe
• End of Iraq war expected to provide strong
  impetus for growth in shipments to the Middle
  East
• Reconstruction of Iraq
• Consumer confidence in neighbouring countries
• HUAL increasing its frequency Europe-Australia to
  2 sailings per month
• Australia increasingly interesting market for
  Ro/Ro import/export

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Market trends HUAL trades
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• US OUTBOUND
• HUAL maintaining position and market share in our
  traditional stronghold in the Middle East
• Peace dividend after Iraq war ends?
• USA - Africa trade has long-term potential
• USA - Europe trade suffering from low shipment
  volumes