Preliminary Report 2006

Preliminary Report 2006

Broström AB (publ) - Reg. no. 556005-1467

• Volatile and weak freight market during fourth quarter
- Mild weather and relatively few weather-related disruptions contributed to a weak freight market.
- Weaker US dollar affected the average rate for the year. The largest impact was on fourth-quarter results.

• Profit after net financial items for the year was SEK 580 m (720)
- Net sales were SEK 3,386 m (3,818, of which 625 pertained to sold subsidiaries).
- Profit after tax was SEK 503 m (623).
- Earnings per share were SEK 15.14 (18.89).
- Earnings per share corresponded to a P/E ratio of 10.1 based on the average share price in 2006.
- Return on capital employed was 11.3% (15.9%).

• Profit after net financial items for Q4 was SEK 42 m (280)
- Net sales totalled SEK 802 m (1,128, of which 96 pertained to sold subsidiaries).
- Profit after tax totalled SEK 38 m (252).
- Earnings per share were SEK 1.01 (7.64).

• Substantial surplus value of fleet, newbuilding contracts and call options on vessels
- External valuations show a value that exceeds the book value by approximately SEK 2.5 billion.

• Cash flow and disposable liquidity
- Cash flow per share was SEK 26.11 (19.15).
- Disposable liquidity amounted to SEK 1,110 m (1,295 on 31 December 2005).
- The dividend payout in 2006 was SEK 261 m.

• Proposed dividend of SEK 8.00 per share (8.00)
- The dividend corresponds to a dividend yield of 5.3% based on the average share price in 2006.

• Increase in transport capacity
- The vessels GAN-SURE, GAN-SHIELD and GAN-VOYAGER are now included in Broström's Asian traffic.
- BRO DEVELOPER was delivered on 12 February 2007.

• Outlook for 2007
The freight market in Broström's segments has gradually improved since the start of 2007. Structural changes and greater regional imbalances are expected to lead to a continued rise in the need for shipments. Completed negotiations for transport contracts have had a favourable outcome. On the whole, the outlook for 2007 is favourable.

Broström is one of the leading logistics companies for the   oil and chemical industry, focusing on industrial product   and chemical tanker shipping and marine services. Broström is based all over the world and operates within two areas: Shipping and Marine & Logistics Services. Broström's head office is located in Göteborg, Sweden.