Odfjell presentasjonsmal

1
Norway Ship Finance Forum, Oslo 30 May 2002
2
AGENDA

• Company overview
• Market information
• Financials
• Share information
• Summary

3
MISSION STATEMENT

• Odfjell shall be a leading, preferred and
  profitable global provider of transportation and
  storage of bulk liquid chemicals, acids, edible
  oils and other special products.
• Odfjell shall be a true logistic service
  provider, capable of combining different modes of
  transportation and storage.
• Odfjell shall provide its customers with safe,
  reliable and efficient services.
• In the execution of its services, Odfjell is to
  meet high quality, safety and environmental
  standards.

4
HISTORY

• Established 1916
• Pioneered the chemical tanker trade in the mid
  50s
• Tank Terminals since the mid 60s
• Stock listed on the Oslo Stock Exchange in 1986
• International Share Issue in 1989
• Fleet expansions in 1990s and 2000s
• USD accounting from 2000
• Merger with competitor Seachem in 2000
• Tank terminals in strategic petrochemical areas

5
BUSINESS AREAS

• Regional Trade
• Asia/Americas/Brazil/Chile
• 27 vessels
• Revenue 103 million
• 12 of revenue/7 of EBITDA
• Total assets 136 million

Global Trade - Leading global operator - 61
vessels and 10 nbs on order - Revenue 621
million - 73 of revenue/73 of EBITDA - Total
assets 1,2 billion
INTEGRATED LOGISTICS

• Tank Containers
• - Start-up in 1999
• - 5 000 containers
• - Revenue 34 million
• 4 of revenue/2 of EBITDA
• Total assets 29 million

• Tank Terminals
• 6 owned at strategic locations
• - 8 associated
• Revenue 87 million
• 10 of revenue/17 of EBITDA
• Total assets 259 million

6
LEADING INDUSTRY CONSOLIDATOR

• Odfjell is the leading consolidator in an
  industry increasingly moving towards an oligopoly
  of 4-5 players 2000-2001 acquisitions include
• Seachem, a major global deep-sea competitor
• Vopaks Botlek tank terminal in Rotterdam
• 50 of Oiltanking Singapore Chemical Storage in
  Singapore
• 55 of Korea Petrochemical Industry Companys
  chemical tank terminal in Onsan, Korea
• Significant newbuilding program in 1994 - 2005

7
CONSOLIDATED MARKET SHARE
Note Market share based on core fleet over
10,000 tdw. - about 9.5 mill. tdw.)
8
BUSINESS CHARACTERISTICS

• Barriers to entry
• Highly specialised vessels and operation
• Scale Threshold
• Systems, organisation and human resources
• Customer relations Track record
• Contract coverage
• Customer expectations
• Quality Safety Reliability
• On spec and on time delivery
• Frequencies - Regularity
• Many ports for loading and discharging
• Cost efficiency

gt Few and large operators
9
GLOBALISATION, NEW PLANTS TRADE PATTERNS
10
PRODUCT GROUPS
Source Various sources, Odfjell BDP
11
BUSINESS DRIVERS

• Demand
• Global trade
• Industrial production/GDP
• Ton-mile (trading pattern)
• Supply
• Order book
• Yard capacity
• New IMO regulations/scrapping
• Customer requirements - inspections

12
SUSTAINABLE CHEMICAL MARKET GROWTH
Chemicals and plastics growth has outpaced GDP
growth over the last two decades
Global Growth Index (Index Base Year 1985)
Source CMAI March 2002
13
DELIVERIES OF NEWBUILDINGS (Core fleet over
10,000 tdw.)
12 April 2002
14
FREIGHT RATE DEVELOPMENT (Chemicals)
15
CUSTOMERS
16
END USES
17
ODFJELL TERMINALS
Rotterdam ?
Quebec ?
Dalian ?
? Onsan
Houston ?
? Ningbo
Singapore ?
Callao ?
18
GROWTH
PROFIT AND LOSS
BALANCE SHEET
33
29
Book values
19
NET PROFIT, CASH FLOW AND RETURN

• Average RoE 1990 1999 13
• 1991 2000 11
• 2001 11,4
• 1Q02 4,2

20
WORLD ECONOMIC GROWTH (GDP)
21
BALANCE SHEET (31.03.2002)
LIABILITIES EQUITY
ASSETS
ST debt
Liquid assets
Other fixed and current assets
Tank terminals
LT debt

• USD 532
• million
• USD 23.24/
• NOK 205
• per share

Vessels nbs
Equity
22
SHAREHOLDER STRUCTURE

• Odfjell family 33
• Chemlog ApS 24
• 5 Norwegian Funds 14
• Others 29

23
LISTED ON THE OSLO STOCK EXCHANGE
in Millions, except per share
TRADING Symbol ODF and ODFB
Share price (A-share) NOK 144 of
shares (MM) 22.87 Market capitalization 399 N
et interest bearing debt 731 Enterprise
Value 1,130 Enterprise Value/2001
EBITDA 5.6x Price/2001 Earnings 7.2x Price/200
1 Cash Flow 3.0x EBITDA 2001/Net interest
coverage 5.1x Market capitalization/Book
Equity 76 Dividend yield 6
Odfjell
OBX
24
SHARE PRICE DEVELOPMENT



25
DIVIDEND AND YIELD
Dividend per share in NOK. Yield equals dividend
as a percentage of yearly average share price.
26
CONCLUSION

• Strong market position and corporate platform
• Focus on core business
• Growth in
• Tank Terminals
• Tank Containers
• Fleet development
• Focus on long-term return