LEIF HÖEGH & CO ASA ACQUIRES. UGLAND INTERNATIONAL HOLDING plc s 50% INTEREST IN THE HUAL JOINT VENTURE

Transcription

1 LEIF HÖEGH & CO ASA ACQUIRES UGLAND INTERNATIONAL HOLDING plc s 50% INTEREST IN THE HUAL JOINT VENTURE nrb-kaj-hual-countries-pres

2 THE ACQUISITION PRICE IS USD 390 MILL, WHICH IS PRIMARILY FINANCED BY A USD 238MILL BRIDGE LOAN Cash: Debt and t/c commitments on 2 vessels including purchase obligations after 6 years: Enterprise value: USD 238 mill. USD 152 mill. USD 390 mill. nrb-kaj-hual-countries-pres

3 THE ACQUISITION GIVES US A SOLID PLATFORM ON WHICH TO GROW WITHIN THE RO/RO SEGMENT - Acquisition rationale g HUAL is our largest business unit and has produced consistently good returns g HUAL is a ro/ro operator and not a pure car carrying unit, with several inherent opportunities g Allows us to expand from a strong platform in an interesting market nrb-kaj-hual-countries-pres

4 THE ACQUISITION GIVES US A SOLID PLATFORM ON WHICH TO GROW WITHIN THE RO/RO SEGMENT - Acquisition rationale (Cont d) g Accretive to key ratios, EBITDA/Share Cash Flow/Share Earnings/Share g Vital in order to gain strategic and management control in a time of opportunities presented by consolidation/restructuring in the auto industry T Guttormsen will become President of HUAL while keeping his present position within LHC g Macro economic cycles indicate good timing for operational gearing with several opportunities to evaluate strategic options, among them short sea activities, terminals, consolidations and new logistic concepts nrb-kaj-hual-countries-pres

5 Shipping Depends Upon Physical Trade Volumes World Economy -Trade Volume Growth (Goods & Services) Boom Back to Normal Annual % Change Bust Recovery E 2000E 2001E nrb-kaj-hual-countries-pres Source: IMF

6 g g Financial Gearing Shipping Investment Themes in 2000/2001 Companies and Segments where asset appreciation is back in focus in 1999, the first to respond to a change in Overall market Outlook (Macroeconomic Fundamentals, Growth Prospects) - Focus on NAV potential Examples: Crude Oil Carriers, Dry Bulk, partly also Gas Carriers (LPG) and Chemical Carriers Timing: 2H99 through 1H2000 Operational Gearing Companies and Segments where growth in trade volumes will have a significant effect on earnings - Focus on Earnings Visibility Examples: Car Carriers, Chemical Carriers cont., Container Lines, Reefers Timing: 2Q-3Q2000 through 1H2001 nrb-kaj-hual-countries-pres

7 WORLD SEABORNE VEHICLE SHIPMENTS ARE PREDICTED TO SHOW CONTINUED GROWTH In thousand units South Korea total Other trades North America - Europe Europe - North America Other Japanese trades Japan - Europe Japan - North America nrb-kaj-hual-countries-pres

8 JAPANESE VEHICLE EXPORTS HAS PEAKED million units Exports Transplant production nrb-kaj-hual-countries-pres

9 4000 SOUTH KOREA: LIGHT VEHICLE PRODUCTION AND EXPORTS WILL CONTINUE TO INCREASE thousand units Production Exports nrb-kaj-hual-countries-pres

10 COMBINED FAR EAST VEHICLE EXPORT (DEEP-SEA) WILL REMAIN AT TODAY S LVEL 1,000 units Japan Korea Forecast nrb-kaj-hual-countries-pres

11 WORLD CAR CARRIER FLEET SIZE/AGE AND ORDERBOOK In No. of vessels (>2,000 cars) <3,000 3,000-3,900 4,000-4,999 >5, Orderbook nrb-kaj-hual-countries-pres

12 CURRENT NEWBUILDING CONTRACTS ARE EVENLY SPREAD AMONGST THE COMPETITORS CAR CARRIER ORDERBOOK BY POOL vessels NYK HMM MOSK KKK Wallenius HUAL Grimaldi Nissan IN THOUSAND CAR UNITS nrb-kaj-hual-countries-pres

13 CAPACITY ADDITIONS WILL PEAK IN 2000 In thousand units Scrapped/lost Deliveries Net additions nrb-kaj-hual-countries-pres

14 HUAL PROVIDES SERVICES TO ALL THE AUTO MANUFACTURERS... North America Outbound 116,00 CEUs Europe Outbound 342,100 CEUs Far East Outbound 375,100 CEUs General Motors Ford DaimlerChrysler Caterpillar Deere & Co. Bayliner DaimlerChrysler BMW / Rover Renault Peugeot Volvo Nissan Subaru Komatsu Daewoo Kia nrb-kaj-hual-countries-pres maincust.ppt 1/2000

15 THROUGH ITS GLOBAL SERVICE NETWORK Far East - Caribbean/USEC Far East - South America US - Europe Europe - Caribbean/US Europe - Africa US - Middle East Europe - Middle East Europe - Far East Far East - Europe To North America To South America nrb-kaj-hual-countries-pres /2000

16 HUAL IS REPRESENTED WORLDWIDE HUAL FRANCE S.A.R.L. HUAL UK LTD HUAL BENELUX B.V. HUAL GERMANY GMBH HUAL REP. SEOUL HUAL NORTH AMERICA INC. HUAL REP. ABIDJAN HUAL REP. DUBAI HUAL JAPAN K.K. nrb-kaj-hual-countries-pres /99

17 THE RO/RO FLEET AFTER THE ACQUISITION Name Built CEU capacity Hual Ingrita Hual Lisita Hual Angelita Hual Carmencita Hual Karinita Hual Favorita Hual Margarita Hual Tracer Hual Trapper Hual Traveller Hual Trotter Hual Tribute Hual Trident Hual Trooper Hual Transporter Hual Trinita Name Built CEU capacity Hual Transita Hual Rolita Carib Sea Carib Sun Carib Star Auto Champ Auto Diana Hual Asia Hual Europa (newb.) Hual Trader T/C VESSELS: Hual Carolita Hual Martita (newb.) EMC VESSELS: City of Rome City of Paris nrb-kaj-hual-countries-pres

18 NYK MOL WWL HMM K-Line HUAL Grimaldi NMCC Others SIX OPERATORS DOMINATE THE DEEP-SEA RO/RO SEGMENT Fleet capacity (incl. newbuildings on order Aug. 99) nrb-kaj-hual-countries-pres

19 HUAL S CARGO MIX IS IMPROVING % Volume in CEUs % 8 % 68 % 23 % 58 % NEW CARS 2ND HAND CARS HIGH/HEAVY nrb-kaj-hual-countries-pres

20 CYCLICAL DIP MADE TRANSACTION POSSIBLE AT A FAIR PRICE (operating profit before sales gain and depreciation) NOK mill Q98 3Q99 Years nrb-kaj-hual-countries-pres

21 Proforma 1998 and 3Q99 statements including 100% of Unicool and 100% of HUAL (NOK mill.) 1998 Actual 1998 Proforma 3Q 1999 Actual 3Q 1999 Proforma Operating profit before sales gain and depreciation Gain on sale of vessels Ordinary depreciation (213) (383) (187) (306) Operating profit Net financial items (265) (418) (67) (229) Net profit (37) (24) nrb-kaj-hual-countries-pres

22 Proforma 1998 and 3Q99 ratios including 100% of Unicool and 100% of HUAL (NOK mill.) Q Q 1999 Actual Proforma Actual Proforma EBITDA/share Cashflow/share Earnings/share (1) (1) nrb-kaj-hual-countries-pres

23 Proforma 1998 and 3Q99 statements including 100% of Unicool and 100% of HUAL (NOK mill.) Q Q 1999 Actual Proforma Actual Proforma Goodwill Vessels Newbuilding contracts Other long term receivables and fixed assets Bank deposits and marketable securities TOTAL ASSETS nrb-kaj-hual-countries-pres

24 Proforma 1998 and 3Q99 statements including 100% of Unicool and 100% of HUAL (NOK mill.) 1998 Actual 1998 Proforma 3Q 1999 Actual 3Q 1999 Proforma Shareholder s equity Deferred tax Mortgage debt/lease obligations Other long term debt Other current liabilities TOTAL LIABILITIES AND SHAREHOLDER S EQUITY nrb-kaj-hual-countries-pres