STAR Reefers

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STAR Reefers

• Presentation of 3Q 2004
• November 2 2004

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STAR Reefers Highlights in 3Q

• EPS 0.48 against -0.32 last year
• Freight rates 49 cents in 2Q vs. 39 cents last
  year
• Sale of 2 ships generating profit of 4.6
  million
• Contract renewals 2005 at levels up 15-25
• Strenghening balance sheet

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Profit Loss Account

• .

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Balance Sheet

• .

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2004 With 2nd Peak in May and a Strong Summer
Market
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Are Rates Returning to 1997 Levels?
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Net Scrapping Continues in a Strong Market...
...but most of it is the older frozen
vessels. Source Orion Shipping

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Reefer Age Distribution Fleet over 300 000 cbft
231 mill. cbft.
39 of fleet is over 20 years and almost no
newbuildings
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Box Ships Busy Earning Good Money in Dry
Containers
6 12 month TC rates container ships (Source
Carl Boch)
- text -
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Recent Reefer Industry Developments

• Market growth expected to exceed 2,5 p.a.
• Significant increase in spot rates
• Customers concerned about availability of tonnage
• Fruit major securing tonnage on 3 year contract
• Aggressive competition amongst operators
• Operators chartering in vessels on medium term (3
  5 years)
• Container lines concentrated on dry cargo
• Competition for quality 2nd hand ships
• Scrapping continuing in strong market
• Old fleet
• Almost no new orders

Star well positioned to take advantage of this
period of change
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Star Strategy

• Objective
• Strategy

• To generate a RoE better than our major
  competitors
• Simplify and improve the management of the
  Company
• Optimise fleet structure
• Business risk management
• Reduce costs
• To evaluate new reefer shipping and terminal
  opportunities.

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STAR Core Fleet

• .

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Reefer Age Distribution of Fleet over 300 000
cbft (231 mill)
Age gt25 20-25
20-15 15-10 10-5 gt5
Ship Star Owned/BB - 1 5
12 4 - Ships Star
Chartered - - 1
9 2 2