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

2

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

3

LEIF HÖEGH & CO

Corporate strategy changed from diversification to focus on fewer core segments

LNGLPG

W.AfricaHöegh 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

6

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

9

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

sea Unload Inspection Portstorage

Infoprocess.

Inlandtransport.

Port inFar East

Port inEurope

Deepsea

Abt.USD 500 per CEU

11

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 20060

1

2

3

4

5

6

7

8

9Other 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

<3,0003,000-3,9004,000- 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

16

LEIF HÖEGH & CO

Höegh Gandria (125 000 m3) on t/c to Pertamina to 2006Norman Lady (87 600 m3) on t/c to Enagas to 2012/2019Höegh Galleon (87 600 m3) on t/c to Tractebel to 2017Matthew (126 000 m3) on technical management for

Tractebel Snöhvit TBN (145 000 m3) t/c to SSG from 2005Snöhvit 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

USD

Mill

0102030405060708090100

%

Total Assets Equity Ratio