LEIF HÖEGH & CO. Presentation 10.04.2003. LEIF HÖEGH & CO. Part 1: Market.

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LEIF HÖEGH & CO. Presentation 10.04.2003

Transcript of LEIF HÖEGH & CO. Presentation 10.04.2003. LEIF HÖEGH & CO. Part 1: Market.

LEIF HÖEGH & CO.

Presentation 10.04.2003

LEIF HÖEGH & CO.

Part 1:

Market

World vehicle movements 2002

Ex N America0.4 mill.

Ex Europe1.8 mill.

Ex Japan / KoreaEx Japan / Korea6.5 mill.6.5 mill.

To N. America

To S. America

300

120

80 550550

350200200

19001900

40

900

150

80

28252825

370370

30

Factory-new cars & light commercial vehicles, plus 2nd hand vehicles (estimated)

75

580580

LEIF HÖEGH & CO.

Global car production is expected to grow by

19.5% from 1999 levels

48 000 000

50 000 000

52 000 000

54 000 000

56 000 000

58 000 000

60 000 000

62 000 000

64 000 000

66 000 000

CY1999 CY2001 CY2003 CY2005 CY2007

0 %

5 %

10 %

15 %

20 %

25 %

Grand Total Captive growth

LEIF HÖEGH & CO.

World PCC/PCTC fleet - age composition

277 351

470 043

378 599

183 900

440 048

160 750

35

88

40

78

80

118

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

1973-80 1981-85 1986-90 1991-95 1996-00 2001-03

Inta

ke

ca

pa

cit

y (

RT

43

)

0

20

40

60

80

100

120

140

nu

mb

er

of s

hip

s

Intake capacity Number of ships

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Age distribution of world PCC / PCTC fleet Including confirmed NB contracts

• 2003: 437 vessels

• 2008: 472 vessels

• 72 NBs confirmed

• No scrapping 2002

Age distribution 2003 -2008

127

5244

110

31

44

128

31

89

128

18

107

0

20

40

60

80

100

120

140

2003 2008

0-5 6-10 11-15 16-20 20-25 <25

LEIF HÖEGH & CO.

PCC/PCTC supply/demand balance

-32,7 -36,4-44,3

-31,9

-45,7

-68,7

28,8 31,6

21,8

42,232,4

5,0

33,743,6

49,8

73,4 76,2

65,3

-80,0

-60,0

-40,0

-20,0

0,0

20,0

40,0

60,0

80,0

100,0

2001 2002 2003 2004 2005 2006

20 year scenario 25 year scenario 30 year scenario

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

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OVERCAPACITY

UNDERCAPACITY

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Part 2:

HUAL

LEIF HÖEGH & CO.

HUALNORTH AMERICA INC.(New York, Baltimore,Chicago, Jacksonville)

HUALJAPAN K.K.

(Yokohama & Tokyo)

HUALFRANCE S.A.R.L.(Paris & Le Havre)

HUALUK LTD

HUALBENELUX B.V.

HUALGERMANY GMBH

HUAL REP.COTONOU

HUAL REP.DUBAI

HUAL REP.SAN JUAN

HUAL REP.DURBAN

KIWI CAR CARRIERS

HUALCHINA

HUAL has a strong presence in all important Ro/Ro markets –

– as well as a modern and flexible fleet –

• 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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LEIF HÖEGH & CO.

To North America

To South America

US - EuropeFar East -

Caribbean/USEC/US Gulf

Far East -South America

Europe - South Africa / Australia

Europe - Far East

Europe - Middle East

US - Africa

Far East -Europe

Japan-New Zealand(KIWI)

Europe - Caribbean/US

– and trade systems that span the globe –

Europe -West Africa

US -Middle East

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To North America

To South America

USEU: 24

FEUS: 36

FESA: 12

EUAF+ EUAU : 30

EUFE: 24EUME: 24

USAF: 12

FEEU: 36FEEU: 36

KIWI : 36

EUCA: 24EUCA: 24

– offering excellent services and frequencies

USME: 24EUWA: 14

Far East Outbound trades - 2002

Total volume: 365,000 CEUs

Far East-Europe:155,000

Far East-South America40,000

Japan-New Zealand66,000

Far East-US:104,000

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Europe outbound trades - 2002Total volume: 490,000 CEUs

Europe-Far East:93,000

Europe-Middle Europe-Middle East: 135,000East: 135,000

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Europe -Caribbean57,000

Europe -Africa/Australia205,000

US outbound trades - 2002Total volume: 201,000 CEUs

US-Europe:25,000

US- Middle East:148,000

US- Africa:28,000

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LEIF HÖEGH & CO.

HUAL’s cargo portfolio is diversified, both in terms of cargo composition –

54 %28 %

18 %

New cars

Used cars

High/Heavy

– and customers

North America Outbound201,000 CEUs

Europe Outbound490,000 CEUs

Far East Outbound365,000 CEUs

General MotorsFordDaimlerChryslerCaterpillarDeere & Co.Baylineretc. etc.

DaimlerChryslerBMWRenault/NissanPAG (Ford/Volvo/LR/Jaguar)Peugeot/CitroënVWetc. etc.

NissanSubaruGM DAT (Daewoo)KomatsuKobelcoHitachietc. etc.

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KIWI Car Carriers

• 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

CETAM currently operates fiveseparate 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

2002 transportation volume: 275.000 car equivalents

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HUAL’s Caribbean

service

USA

Mexico

Colombia

DominicanRepublic

Guy

ana French

Guyana

Surin

am

Venezuela

Jamaica

Guadeloupe

Costa Rica

Deep-sea service ex Europe

Feeder service

Deep-sea service ex Far East

PuertoRico

Deep-sea service ex US

Martinique

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LEIF HÖEGH & CO.

HUAL highlights 2002

• 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

• 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

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

LEIF HÖEGH & CO.

Market trends – HUAL trades

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

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