1. PRESENTATION
NFF, 23 November 2000

2. AGENDA
Business strategy and development
Market
Financials
Future

3. BUSINESS AREAS DEEP SEA 70 vessels + 10 nb’s 2,8 mill. tdw. SHORT SEA
0,9 mill.cbm. st.st.
SHORT SEA
AMERICAS/
BRAZIL
12 vessels
106’ tdw.
68’ cbm. st.st.
SHORT SEA
ASIA
8 vessels
65’ tdw.
67’ cbm. st.st.
TANK
TERMINALS
4 owned
1,9 mill. cbm
6 associated
TANK
CONTAINERS
4.900 tank
containers

4. STRATEGY Concentration on global chemical
transportation and logistics (core business)
Critical mass to enable extensive trade pattern
Scale to be a low cost producer
Customer focus
High quality - hardware/software
Long term planning / cyclicality
Strong financial position

5. ACTIVITIES (turnover 3Q00 annualised = about USD 800 mill.)

6. STRATEGIC MOVES 1990’s Fleet renewal/consolidation:
Newbuildings: 15 large stainless steel drugstore vessels (1990s)
Seachem (2000)
Focus on total logistics:
Regional fleet: Asia (1997), Americas (1997) and Brazil (1999)
Terminals: China (1994/1998), expansion Houston (1990s) and Rotterdam (2000)
Tank containers (1999)
Odfjell Logistics as a new division (2000)

7. HIGHLIGHTS 2000 Turnaround from low cycle Seachem transaction
Botlek acquisition
Delivery of Bow Century
Expansion at Baytank
Share buyback program
Organisational changes

8. SEACHEM Share issue to Chemlog NOK 1 billion (NOK 208/share)
Purchase from Ceres managed companies:
- 9 chemical tankers and 4 newbuilding contracts
- the pool company Seachem
Total investment about USD 360 mill.
Long-term pool arrangement of:
- 11 Ceres managed vessels and 4 newbuildings
Market share increase from 18% to 25%
Increase in annual turnover of about USD 140 mill.
Small loss in 3rd quarter 2000

9. TANK CONFIGURATION

10. ODFJELL TERMINALS (ROTTERDAM)
The largest terminal in Antwerp-Rotterdam Amsterdam (ARA) area, probably the largest in Europe – 25% market share in Rotterdam
Mineral oil and chemical storage
300 storage tanks
Total capacity about cbm.
cbm. for mineral oil and cbm for chemicals
4 jetties and 11 barge docks
Total investment about USD 66 mill.
Annual turnover about USD 50 mill.
EBIT of USD 2,6 mill. in the 3rd quarter 2000

12. GLOBAL TERMINAL NETWORK
Strategic hubs
Expansion/new areas

13. TANK CONTAINERS Startup 01.01.1999 Trade areas Growth business
Partnership Hoyer

14. ODFJELL LOGISTICS - POTENTIAL
Global customers
Fewer suppliers
Reduced working capital requirements
Reduce inefficiencies of hardware
Reduced overheads
Our objective: more total logistics business

15. Important to our business (old economy)
IT SYSTEMS
Important to our business (old economy)
Communication - ships/shore/customers
Real time information
Reduce paperwork – increase efficiency
Reduce errors
Reduce need/cost of middlemen
Benefit increases with complexity

16. E-COMMERCE Technology in use today Dot com – customer views differs
handling of information
trading place
Odfjell’s strategy
develop our internal systems
be able to communicate through many channels

17. MARKET

18. DEEP SEA MARKET SHARE (Core fleet over 10.000 tdw. - about 9 mill. tdw.)

19. FLEET DEVELOPMENT (Core fleet over 10.000 tdw.)

20. DEMAND FACTORS Global Related to GDP growth
Relates to growth in industrial production
Influenced by regional imbalances in production and consumption (USA, Europe, Middle-East, Far-East, South America)

21. SPOT RATES

22. PRODUCT TANKER MARKET

23. FINANCIALS 2000 Difficult year Low market cycle High bunker cost
Increased interest rates
Currency losses

24. NET PROFIT/CASH FLOW/RETURN
Average RoE 1990 – 1999: 14%

25. (ex. sales gain, currency gain/loss)
NET RESULT /CASH FLOW
(ex. sales gain, currency gain/loss)

26. RATE DEVELOPMENT ON TC-BASIS
Index 2

27. VOYAGE COST
Bunker
Canal
Transhipment
Port cost

28. VESSEL OPERATING COST
Currency
Crewing
Age profile
Drydocking

29. Other LT and current assets
BALANCE SHEET
LIABILITIES
& EQUITY
ASSETS
ST debt
Liquid assets
Other LT and current assets
Tank terminals
LT debt
Vessels
& nb’s
NOK 185
per share
Equity

30. TOTAL ASSETS & EQUITY
34%
equity
ratio
32%
equity
ratio

31. SHAREHOLDER STRUCTURE
Liquidity

32. THE ODFJELL SHARE Market value NOK 134 (09.10.00)
Share issue
Book value
Market
value
Market value NOK 134 ( )
Share buy-back program (p.t. 3,4%)
Dividend policy

33. SHARE PRICE DEVELOPMENT

34. SENSITIVITY 2001 T/C RATES Deep Sea USD 1000/day USD 15 mill.
Short Sea USD 500/day USD 3 mill.
BUNKERS
USD 10 per metric ton USD 6 mill.
INTEREST RATES
USD LIBOR 1 % USD 8 mill.

35. SENSITIVITY T/C RATES
Sensitivity for the Deep Sea fleet of USD 1000/day and the Regional fleet of USD 500/day equals about USD 18 mill. annually or NOK 6,25/share, or NOK 62,5 pr. share assuming a PE ratio of 10
Market rates from peak to bottom during the 1990’s were close to USD /day.

36. RECOMMENDATIONS Analyst Recommedation Alfred Berg Buy Aros Maizels Buy
Carnegie Strong Buy
CBK Buy
Fearnleys Buy
Pareto Buy

37. FUTURE PROSPECTS Improved business cycle Threats End downturn 2000
Reduced supply of new tonnage
Increased demand
Threats
Continued high oil price
Reduced world economic growth
Massive ordering of new tonnage – time lag

38. FUTURE PROSPECTS cont. Structural changes Odfjell’s position
Consolidation
Preference for integrated services
E-commerce technology will increase
Odfjell’s position
Strong platform
Counter-cyclical investments
Continued growth
Total logistics service provider