Post on 15-Jan-2016
LEIF HÖEGH & CO
Business Development\Corp\Presentations\Analytikerpresentasjoner\Carnegie’s 1st Annual Nordic Shipping Seminar
Leif Höegh & Co.ASA (LHC)
presentation forCarnegie’s 1st Annual Nordic Shipping Seminar
7-8 April 2003
75 years in shippingHöegh LNG
This is LHC
Corporate strategy
HUAL
Höegh LNG
Sustainable Development
Results
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LEIF HÖEGH & CO
10 %
20 %
70 %
Ro/Ro LNG Other
2002 EBITDA per activity
Fleet– 53 owned vessels
Location– Head office in Oslo– Listed Oslo (OSE)
Employees– abt. 1900 sailors– abt. 400 ashore
Shareholders– Høegh family owns 66%
Market capitalisation– NOK 2 600 million– (USD 360 million)
Freight revenues 2002– USD 667 million
This is LHC
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LEIF HÖEGH & CO
Corporate strategy changed from diversification to focus on fewer core segments
LNG
LPGW.Africa
Höegh LinesOpen Hatch
HUALOBOTank
Bulk
Contract ShippingLNG/Bulk
Other Reefer / Open Hatch
RORO ROROHUAL
LNG
Other
Diversification Focus Growth
Past Present
Corporate strategy
Reefer / OH / Bulk
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LEIF HÖEGH & CO
Leif Höegh & Co. ASA
HUAL AS
RoRo
26 PCTC4 Newbuildings3 T/C long term
Open Hatch
10 Open Hatchin Saga Forest
Carriers
BULK
2 x 211 000 dwtdry bulk
on long term t/c
Reefers
12 x reefers in Lauritzen
Cool
HÖEGH LNG
LNG
4 LNG vessels2 Newbuildings
Management
HFS AS
Technical
Crewing
Project / newbuildings
This is LHC
Portfolio Management
Finance
Fleet
5
LEIF HÖEGH & CO HUAL
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LEIF HÖEGH & CO
HUAL operates a modern fleet of about 45 vessels
24 owned deep-sea vessels Capacity 3500 - 6200 cars 2 owned short-sea vessels Capacity 800 cars 3 PCTC newbuildings, 2005 Capacity 6100 cars 1 Ro/Ro newbuilding, 2004 (Airbus t/c)
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LEIF HÖEGH & CO
Europe - USEC
USEC -Middle East
Europe -Middle East
Europe -Far East
Far East -Europe
One main trade
1988
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LEIF HÖEGH & CO
A Global trade system
USEC -Europe
Europe -CaribbCaribbean/
US
USEC -Middle East
Europe -Middle East
Far East -Caribbean/ USEC
Far East -WC South America
Europe Europe --AfricaAfrica
Europe -Far East
To North America
To South America
USEC -Africa
(Ballast to FE)
Far East -Europe
Kiwi
2002
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LEIF HÖEGH & CO
Development in cargo composition
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1990 2002
Vol
ume
in C
EU
's
New cars Second hand cars High & Heavy
68%
8%24%
64%
22%
14%
1990: 654 000 units
2002: 1 438 900 units
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LEIF HÖEGH & CO
The Vehicle transportation supply chain
Sea transportation of vehicles is a link in a long chain of operationsand represents a small share of the price to the end user
Vehicle process.
Inlandtransport.
Portstorage
Vehicleprocess.
Infoprocess. Inspection Load Deep
seaUnload Inspection Port
storage
Infoprocess.
Inlandtransport.
Port inFar East
Port inEurope
Deepsea
Abt.USD 500 per CEU
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LEIF HÖEGH & CO
7,4
1,35
1,1 0,5
POV's High & Heavy
World vehicle production(million units)
57 mill new light vehicles and 1,9 mill trucks
Seaborne vehicles, 2002(deep sea)10,6 mill units
1,97,4
49,6
Trucks Seaborne new cars
Source: J.D.Power and R.S.Platou
New cars
Sea bornenew cars
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LEIF HÖEGH & CO
Source: J.D.Power and R.S.Platou
WORLD SEABORNE VEHICLE SHIPMENTSIn million units
0
1
2
3
4
5
6
7
8
9
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
0
1
2
3
4
5
6
7
8
9
Other trades
North America - Europe
Europe - North America
South Korea total
Other Japanese trades
Japan - Europe
Japan - North America
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LEIF HÖEGH & CO
Source: J.D.Power and R.S.Platou
WORLD CAR CARRIER FLEET - AGE PROFILE AND ORDERBOOK*- In No. of vessels
0
20
40
60
80
100
120
73-75 76-80 81-82 83-85 86-90 91-99 2000+ Orderbook
<3,000
3,000-3,900
4,000- 4,999>5,000
* firm orders only
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LEIF HÖEGH & CO
Source: J.D.Power and R.S.Platou
* firm orders only
NET ADDITIONS TO THE CAR CARRIER FLEETIn thousand units
-100
-50
0
50
100
150
200
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006-100
-50
0
50
100
150
200
Scrapped/lost Deliveries Net additions
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LEIF HÖEGH & CO
Höegh LNG
Höegh LNG
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LEIF HÖEGH & CO
Höegh Gandria (125 000 m3) on t/c to Pertamina to 2006
Norman Lady (87 600 m3) on t/c to Enagas to 2012/2019
Höegh Galleon (87 600 m3) on t/c to Tractebel to 2017
Matthew (126 000 m3) on technical management for Tractebel
Snöhvit TBN (145 000 m3) t/c to SSG from 2005
Snöhvit TBN (145 000 m3) t/c to TotalFinaElf from 2006
Höegh LNG
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LEIF HÖEGH & CO
LNG TRADE BY IMPORTING REGION
0
100
200
300
400
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Asia Europe Americas Low Case High Case
Höegh LNG
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LEIF HÖEGH & CO
World LNG vessel fleet
Pacific fleet 93 vesselsAtlantic fleet 35 vesselsWorld fleet 128 vessels
Orderbook 64 vesselsOptions 20 vessels
2 521417
143560
Local consumption Pipeline LNG shipped
Natural Gas production (bcm)
Export
Höegh LNG
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LEIF HÖEGH & CO
Snøhvit field
The Liquefied Natural Gas (LNG) supply chain
Sea transportation of LNG amounts to as much as 20 to 30 %of the end user price.
(Source: BP Amoco - LNG chain costs 1998 based on last 10 years. Approximate return 12%; on shipping 8%)
Production Liquefaction Sea transportation Terminal Total cost
US$/million BtuLow case: 0,3 1,0 0,6 0,4 2,3High case: 1,3 2,5 1,1 1,5 6,4
Höegh LNG
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LEIF HÖEGH & CO Other
Sustainable development
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LEIF HÖEGH & CO
Why is the matter of environmental protection important to a company like LHC?
Idealistic reasons: – We all want to hand over a clean planet to the next
generation Business reasons:
– Our customers want to make business with an environmentally friendly company
Regulatory reasons:– We are obliged to follow international rules and
regulations (which are fairly well developed) We can all make a difference!
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LEIF HÖEGH & CO
LHC is a member of the World Business Council for Sustainable Development (WBCSD)
WBCSD is a coalition of 150 international companies united with
a commitment to provide business leadership as a catalyst for
change towards sustainable development
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LEIF HÖEGH & CO
Results
Results
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LEIF HÖEGH & CO Financial development
64
124
164 160
113
0
25
50
75
100
125
150
175
1998 1999 2000 2001 2002
USD MILL
EBITDA 1998 -2002
25
LEIF HÖEGH & CO Financial development
51
-38
19
83
62
-50
-25
0
25
50
75
1998 1999 2000 2001 2002
USD MILL
NET PROFIT 1998 -2002
26
LEIF HÖEGH & CO Financial development
CASHFLOW 1998 -2002
88
50
103
156
135
0
25
50
75
100
125
150
175
1998 1999 2000 2001 2002
USD mill.
27
LEIF HÖEGH & CO Financial development
TOTAL ASSETS - EQUITY RATIO 1998 -2002
0
200
400
600
800
1000
1200
1400
1600
1998 1999 2000 2001 2002
US
D M
ill
0
10
20
30
40
50
60
70
80
90
100
%
Total Assets Equity Ratio