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.