Broström Preliminary Report 2007 Lennart Simonsson, CEO Anders Dreijer, Deputy MD

Agenda Broström in brief The Broström fleet Strategic transactions 2007 Preliminary report 2007 Tanker market up-date Market consolidation The Broström brand Outlook

Broström in brief

The Broström fleet

Strategic transactions 2007

Preliminary report 2007

Tanker market up-date

Market consolidation

The Broström brand

Outlook

Broström’s place in the value chain

Broström – a global logistics company 55 vessels in European trade 22 vessels in Asia 9 vessels in the Atlantic 86 vessels + 16 vessels to be added within 2 years

Broström’s Fleet of Tanker Vessels

Strategic Transactions 2007 Claus Peter Offen (CPO) 8 x 37,000 dwt , to be delivered during 2008 Acquisition of The Petroships Group, Singapore 9 x small and intermediate vessels in Asia Acquisition of existing vessels under commercial management 2 x 7,100 dwt 1 x 37,000 dwt First 2 vessels delivered from ship yards in Turkey, in a series of 6 x 17,000 dwt

Claus Peter Offen (CPO)

8 x 37,000 dwt , to be delivered during 2008

Acquisition of The Petroships Group, Singapore

9 x small and intermediate vessels in Asia

Acquisition of existing vessels under commercial management

2 x 7,100 dwt

1 x 37,000 dwt

First 2 vessels delivered from ship yards in Turkey, in a series of 6 x 17,000 dwt

Preliminary Report 2007 Extremely weak spot market during fourth quarter European and Atlantic traffic were adversely affected by an extremely weak spot market, mainly during the first part of the quarter, due to lower available volumes in the market. Asian traffic was also characterised by a very weak spot market, especially during October and November. For the small size segment, capacity utilisation under contracts remained high, which contributed to stable development during the quarter.

Extremely weak spot market during fourth quarter

European and Atlantic traffic were adversely affected by an extremely weak spot market, mainly during the first part of the quarter, due to lower available volumes in the market.

Asian traffic was also characterised by a very weak spot market, especially during October and November. For the small size segment, capacity utilisation under contracts remained high, which contributed to stable development during the quarter.

Income Statement 2007

Bunker Cost

Surplus value of fleet Market valuation of Existing vessels Newbuilding contracts Call options of vessels Average based on two external brokers As per 31 December 2007 the surplus value exceeded book value by approximately SEK 2.7 billion SEK 41/share Booked values as per 31 December 2007 Equity incl equalisation reserve SEK 40/share Deferred tax SEK 7/share

Market valuation of

Existing vessels

Newbuilding contracts

Call options of vessels

Average based on two external brokers

As per 31 December 2007 the surplus value exceeded book value by approximately SEK 2.7 billion

SEK 41/share

Booked values as per 31 December 2007

Equity incl equalisation reserve SEK 40/share

Deferred tax SEK 7/share

Tonnage Tax Tonnage tax applies for the French operations since 2004 and is in place for the Dutch operations One-off effect SEK 181 m in 2004 year accounts when introduced in France. Sweden is expected to follow rest of EU Proposal submitted Awaiting outcome Deferred tax as per end of 2007 is SEK 478 m Whereof SEK 437 m pertains to the Swedish shipping operation Until a formal decision has been made on a Swedish tonnage tax Broström will not operate future newbuildings under the Swedish flag but under other EU flags.

Tonnage tax applies for the French operations since 2004 and is in place for the Dutch operations

One-off effect SEK 181 m in 2004 year accounts when introduced in France.

Sweden is expected to follow rest of EU

Proposal submitted

Awaiting outcome

Deferred tax as per end of 2007 is SEK 478 m

Whereof SEK 437 m pertains to the Swedish shipping operation

Until a formal decision has been made on a Swedish tonnage tax Broström will not operate future newbuildings under the Swedish flag but under other EU flags.

Financial Objectives and Performance Growth Average annual growth in net sales 10% per year over a three years period actual 2007 vs. 2006: +6.5% Average annual growth in commercial activities (measured as net sales including partners) 20% per year over a three years period actual 2007 vs 2006: +5.8% 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 was 9.4% 2007 actual: 9.8% Equity/assets ratio (II) Above 30% End 2007 actual: 30.9%

Growth

Average annual growth in net sales

10% per year over a three years period

actual 2007 vs. 2006: +6.5%

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

20% per year over a three years period

actual 2007 vs 2006: +5.8%

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 was 9.4%

2007 actual: 9.8%

Equity/assets ratio (II)

Above 30%

End 2007 actual: 30.9%

Preliminary Report 2007 Proposed dividend of SEK 3.00 per share (SEK 4.00) Corresponds to a dividend yield of 6.0% based on closing share price 2007 Policy aiming at distributing 40-50% of profit after tax to shareholders Current dividend proposal represents 46% of EPS

Proposed dividend of SEK 3.00 per share (SEK 4.00)

Corresponds to a dividend yield of 6.0% based on closing share price 2007

Policy aiming at distributing 40-50% of profit after tax to shareholders

Current dividend proposal represents 46% of EPS

Tanker Market

MR product Tanker Earnings Q 3 Q 4 Q 1 Q 2

Global Refinery Margins Lack of incentive to produce oil products due to low refinery margins 2nd half of 2007 Implied low volumes for transportation

Lack of incentive to produce oil products due to low refinery margins 2nd half of 2007

Implied low volumes for transportation

TC Market

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

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

Global Oil Product Demand “ Weaker OECD growth stands against still-robust projections for GDP growth in China and the Middle East, the key oil demand growth centres.” IEA February 2008 +1.7% +1.1% +1.2% +2.3%

“ Weaker OECD growth stands against still-robust projections for GDP growth in China and the Middle East, the key oil demand growth centres.”

IEA February 2008

US Gasoline Stocks “ Even a US recession will not necessarily cut gasoline demand” “ Historically, gasoline demand does not decline until unemployment hits 7%” (Tesoro, US Refiner)

“ Even a US recession will not necessarily cut gasoline demand”

“ Historically, gasoline demand does not decline until unemployment hits 7%”

(Tesoro, US Refiner)

OECD Commercial Oil Stocks

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

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

European Oil Product Imbalances Neste Oil

World oil consumption and refinery capacity mbd Source: IEA/Intertanko Oil product supply is tight!

mbd

World refinery development mbd 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

Newbuilding prices 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

World Tanker Fleet Development All Broström segments < 60 kdwt +7 % annual avg Annual average assuming orderbook to be delivered over three years Source: Clarksons Reasearch Small -10% Intermediate +4% Handy/MR +8%

Small -10%

Intermediate +4%

Handy/MR +8%

Ice Trading Conditions 11 Feb 2008 Normal An exceptional mild winter in the Baltic

Market Consolidation

Small & Intermediate (number of vessels)

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

Consolidation Through Tanker Pools

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

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

Petroships/Broström – a perfect match

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

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

Broström has launched a Functional Organisation A functional organisation helps Broström to communicate one clear message to our customers and partners – wherever they meet us Also, potential employees all over the world will perceive a clear picture of what the Broström brand stands for

A functional organisation helps Broström to communicate one clear message to our customers and partners – wherever they meet us

Also, potential employees all over the world will perceive a clear picture of what the Broström brand stands for

Outlook The start of 2008 has been characterised by a volatile spot market, and the view is that it will continue to be highly volatile from time to time. As a result of investments and acquisitions carried out during the years, Broström has further strengthened its position going into 2008 and forward. The underlying long-term trend for Broström’s market segment is judged to be positive, even though major fluctuations may occur from time to time.

The start of 2008 has been characterised by a volatile spot market, and the view is that it will continue to be highly volatile from time to time.

As a result of investments and acquisitions carried out during the years, Broström has further strengthened its position going into 2008 and forward.

The underlying long-term trend for Broström’s market segment is judged to be positive, even though major fluctuations may occur from time to time.

Thank You! Going for Excellence. Together.