LEIF HÖEGH & CO.
Presentation 10.04.2003
LEIF HÖEGH & CO.
Part 1:
Market
LEIF HÖEGH & CO.
World vehicle movements 2002
Factory-new cars & light commercial vehicles, plus 2nd hand vehicles (estimated)
Ex N America
0.4 mill.
Ex Europe
1.8 mill.
150
80
80
75
370
30
1900
900
2825
Ex Japan / Korea
6.5 mill.
40
200
350
550
To N. America
300
To S. America
120
580
LEIF HÖEGH & CO.
Global car production is expected to grow by
19.5% from 1999 levels
66 000 000
25 %
64 000 000
20 %
62 000 000
60 000 000
15 %
58 000 000
56 000 000
10 %
54 000 000
52 000 000
5 %
50 000 000
48 000 000
0 %
CY1999
CY2001
CY2003 CY2005
Grand Total
CY2007
Captive growth
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500 000
470 043
450 000
118
400 000
140
440 048
120
378 599
100
350 000
300 000
250 000
80
277 351
80
88
78
60
183 900
200 000
160 750
150 000
40
40
100 000
35
20
50 000
0
0
1973-80 1981-85 1986-90 1991-95 1996-00 2001-03
Intake capacity
Number of ships
number of ships
Intake capacity (RT43)
World PCC/PCTC fleet - age composition
LEIF HÖEGH & CO.
Age distribution of world PCC / PCTC fleet
Including confirmed NB contracts
Age distribution 2003 -2008
140
128
127
128
120
110
100
107
• 2003: 437 vessels
89
• 2008: 472 vessels
80
60
40
• 72 NBs confirmed
52
44
44
31
31
18
20
0
2003
0-5
2008
6-10
11-15
16-20
20-25
<25
• No scrapping 2002
LEIF HÖEGH & CO.
PCC/PCTC supply/demand balance
100,0
80,0
65,3
60,0
40,0
76,2
73,4
49,8
43,6
33,7
28,8
42,2
32,4
31,6
21,8
20,0
5,0
O
V
E
R
C
A
P
A
C
I
T
Y
0,0
2001
2002
2003
2004
2005
2006
-20,0
-40,0
-32,7
-31,9
-36,4
-44,3
-60,0
-45,7
-68,7
-80,0
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.
U
N
D
E
R
C
A
P
A
C
I
T
Y
LEIF HÖEGH & CO.
Part 2:
HUAL
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HUAL has a strong presence in all important Ro/Ro markets –
HUAL
FRANCE S.A.R.L.
(Paris & Le Havre)
HUAL
BENELUX B.V.
HUAL
UK LTD
HUAL
GERMANY GMBH
HUAL
JAPAN K.K.
(Yokohama & Tokyo)
HUAL
NORTH AMERICA INC.
(New York, Baltimore,
Chicago, Jacksonville)
HUAL REP.
SAN JUAN
HUAL REP.
COTONOU
HUAL REP.
DURBAN
HUAL REP.
DUBAI
HUAL
CHINA
KIWI CAR CARRIERS
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– 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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– and trade systems that span the globe –
Far East Caribbean/
USEC/US Gulf
US Europe
Europe Middle East
Europe Caribbean/US
US Middle East
Far East Europe
Europe Far East
To South
America
Europe West Africa
Far East South America
US Africa
To North
America
Europe South Africa / Australia
JapanNew Zealand
(KIWI)
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– offering excellent services and frequencies
USEU: 24
FEUS: 36
To North
America
EUME: 24
EUWA: 14
EUFE: 24
USME: 24
EUCA: 24
FESA: 12
FEEU: 36
To South
America
KIWI : 36
USAF: 12
EUAF+ EUAU : 30
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Far East Outbound trades - 2002
Total volume: 365,000 CEUs
Far EastEurope:
155,000
Far East-US:
104,000
JapanNew Zealand
66,000
Far EastSouth America
40,000
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Europe outbound trades - 2002
Total volume: 490,000 CEUs
Europe Caribbean
57,000
Europe Africa/Australia
205,000
Europe-Middle
East: 135,000
EuropeFar East:
93,000
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US outbound trades - 2002
Total volume: 201,000 CEUs
US-Europe:
25,000
US- Middle East:
148,000
US- Africa:
28,000
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HUAL’s cargo portfolio is diversified,
both in terms of cargo composition –
18 %
54 %
28 %
New cars
Used cars
High/Heavy
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– and customers
General Motors
Ford
DaimlerChrysler
Caterpillar
Deere & Co.
Bayliner
etc. etc.
North America Outbound
201,000 CEUs
DaimlerChrysler
BMW
Renault/Nissan
PAG
(Ford/Volvo/LR/Jaguar)
Peugeot/Citroën
VW
etc. etc.
Europe Outbound
490,000 CEUs
Nissan
Subaru
GM DAT (Daewoo)
Komatsu
Kobelco
Hitachi
etc. etc.
Far East Outbound
365,000 CEUs
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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
2002 transportation volume: 275.000 car equivalents
CETAM currently operates five
separate 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
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HUAL’s
Caribbean
service
Deep-sea service ex US
Deep-sea service ex Far East
Deep-sea service ex Europe
Feeder service
USA
Dominican
Republic
Mexico
Jamaica
Costa Rica
Puerto
Rico
Guadeloupe
Martinique
Venezuela
Colombia
French
Guyana
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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
LEIF HÖEGH & CO.
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
LEIF HÖEGH & CO.
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