Broström Q2 Presentation 2008 Lennart Simonsson, CEO Anders Dreijer, Deputy MD

Agenda Welcome! Q2 2008 in words Q2 2008 in figures Fleet development Market trends Summary and Outlook 2008 27 August 2008 Q2 Report 2008 Sida

Welcome!

Q2 2008 in words

Q2 2008 in figures

Fleet development

Market trends

Summary and Outlook 2008

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. 27 August 2008 Q2 Report 2008 Sida

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.

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. 27 August 2008 Q2 Report 2008 Sida

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.

Income Statement 27 August 2008 Q2 Report 2008 Sida

Broström – a global logistics company 27 August 2008 Q2 Report 2008 Sida 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

Fleet Growth 27 August 2008 Q2 Report 2008 Sida

Fleet Growth 27 August 2008 Q2 Report 2008 Sida

Broström’s Market Segments 27 August 2008 Q2 Report 2008 Sida

Market Trends 27 August 2008 Q2 Report 2008 Sida

Oil Price 27 August 2008 Q2 Report 2008 Sida

US Gasoline Stocks 27 August 2008 Q2 Report 2008 Sida

Spot Market Earnings 27 August 2008 Q2 Report 2008 Sida

US market impact from high oil prices 27 August 2008 Q2 Report 2008 Sida 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)

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)

US market impact from high oil prices Less gasoline purchased as prices increase in the US market 27 August 2008 Q2 Report 2008 Sida

Less gasoline purchased as prices increase in the US market

Developments in Global consumption of oil 27 August 2008 Q2 Report 2008 Sida Source: IEA August 2008

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 27 August 2008 Q2 Report 2008 Sida

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

Outlook 2008 27 August 2008 Q2 Report 2008 Sida

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. 27 August 2008 Q2 Report 2008 Sida

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.

The Broström Brand 27 August 2008 Q2 Report 2008 Sida

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 27 August 2008 Q2 Report 2008 Sida

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

The Broström Brand 27 August 2008 Q2 Report 2008 Sida 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

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

The Broström Brand 27 August 2008 Q2 Report 2008 Sida 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

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

… as easy as raising a child! 27 August 2008 Q2 Report 2008 Sida Who we are What we say What we do

… as easy as raising a child!

27 August 2008 Q2 Report 2008 Sida Mission Vision Individual values 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”!

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

27 August 2008 Q2 Report 2008 Sida The Mission – our business concept. What we are here for. The V ision – 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 – t he 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

Our mission “ Broström offers competitive logistics solutions to the oil and chemical industry, focusing on industrial tanker shipping and marine services.” 27 August 2008 Q2 Report 2008 Sida

“ Broström offers competitive logistics solutions to the oil and chemical industry, focusing on industrial tanker shipping and marine services.”

Our vision ” To be recognized as the most attractive logistics service provider based on performance, reliability and respect.” 27 August 2008 Q2 Report 2008 Sida

” To be recognized as the most attractive logistics service provider based on performance, reliability and respect.”

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. 27 August 2008 Q2 Report 2008 Sida

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.

Our core values 27 August 2008 Q2 Report 2008 Sida

Reliability Highest possible safety standards Keeping promises Responding quickly Co-operating with transparency 27 August 2008 Q2 Report 2008 Sida

Highest possible safety standards

Keeping promises

Responding quickly

Co-operating with transparency

Respect Open-minded attitude Treating people as experts in their own field Recognise integrity of individuals Concern for the environment 27 August 2008 Q2 Report 2008 Sida

Open-minded attitude

Treating people as experts in their own field

Recognise integrity of individuals

Concern for the environment

Excellence in performance To be regarded as experts in our field… delivering solutions to our customers and partners, that enables them to stay ahead. 27 August 2008 Q2 Report 2008 Sida

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

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% 27 August 2008 Q2 Report 2008 Sida

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%

Our Brand Promise 27 August 2008 Q2 Report 2008 Sida Going for Excellence. Together.

27 August 2008 Q2 Report 2008 Sida

Business Strategy 27 August 2008 Q2 Report 2008 Sida

World Economic Outlook 27 August 2008 Q2 Report 2008 Sida

World Oil Demand 2008 estimate; 100% = 87.2 mbd 27 August 2008 Q2 Report 2008 Sida

World oil demand World oil demand has increased each year the last 20 years with the only exception of 1993 27 August 2008 Q2 Report 2008 Sida

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

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 27 August 2008 Q2 Report 2008 Sida

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

Rapid Pace of Dieselization Continues in Europe Mismatch between refinery output and oil product demand creates need for evening out regional supply imbalances 27 August 2008 Q2 Report 2008 Sida Source: Cambridge Energy Research Associates 50303-3

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

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 27 August 2008 Q2 Report 2008 Sida Flygbränsle Diesel Bensin Överskott Underskott Källa: Neste Oil

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

World oil consumption and refinery capacity mbd 27 August 2008 Q2 Report 2008 Sida Source: IEA/Intertanko Oil product supply is tight!

mbd

World refinery development mbd 27 August 2008 Q2 Report 2008 Sida Source: BP Review/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

mbd

Vessel Values 27 August 2008 Q2 Report 2008 Sida Contributors to maintained strong vessel values Steel prices Strong dry bulk tonnage demand High ship yard capacity utilisation

Contributors to maintained strong vessel values

Steel prices

Strong dry bulk tonnage demand

High ship yard capacity utilisation

Ship Values 27 August 2008 Q2 Report 2008 Sida

World Tanker Fleet Development (<60 kdwt) 27 August 2008 Q2 Report 2008 Sida

Ice Trading Conditions 27 August 2008 Q2 Report 2008 Sida 23 March 2008 Normal mid March An exceptional mild winter in the Baltic

Small & Intermediate (number of vessels) 27 August 2008 Q2 Report 2008 Sida

Medium Range (MR) & Handy (number of vessels) 27 August 2008 Q2 Report 2008 Sida

Consolidation Through Tanker Pools 27 August 2008 Q2 Report 2008 Sida

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) D ünya 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 27 August 2008 Q2 Report 2008 Sida

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)

D ünya 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