Preliminary Report 2007

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

• Extremely weak spot market during fourth quarter
- European and Atlantic traffic were adversely affected by an extremely weak spot market, particularly during the first part of the quarter, due to lower available volumes in the market.
- Asian traffic was also characterised by a very weak spot market, especially during October and November. For the small size segment, capacity utilisation under contracts remained high and contributed to stable development during the quarter.

• Profit after net financial items for the year was SEK 450 m (580). This includes capital gains on sales of vessels and operations and dissolution of negative goodwill, together totalling SEK 131 m (126).
- Net sales were SEK 3,504 m (3,386, of which 96 pertained to sold subsidiaries).
- Profit after tax was SEK 427 m (503).
- Earnings per share were SEK 6.50 (7.57).
- Return on capital employed was 9.8% (11.3%).

• Profit after net financial items for Q4 was SEK - 10 m (42). This includes capital gains on sales of vessels and operations and dissolution of negative goodwill, together totalling SEK 11 m (13).
- Net sales totalled SEK 844 m (802).
- Profit after tax totalled SEK - 5 m (38).
- Earnings per share were SEK - 0.05 (0.51).

• Proposed dividend of SEK 3.00 per share (SEK 4.00)
- The dividend corresponds to a dividend yield of 6.0% based on the closing share price 2007.

• Surplus value of fleet, newbuilding contracts and call options on vessels amount to a substantial sum
- External valuations show a value that exceeds the book value in the range of SEK 2.7 billion.

• Cash flow and disposable liquidity January - December
- Cash flow per share was SEK 11.55 (13.05).
- Disposable liquidity amounted to SEK 993 m (1,110 on 31 December 2006).
- The dividend payout 2007 was SEK 258 m.

• Changes in the fleet
- At year-end the fleet consisted of 86 vessels and 16 newbuildings.
- The GAN-SWORD (17,000 dwt) and the GAN-SPIRIT (47,000 dwt), owned by Broström’s partner Dünya,
joined the fleet during the fourth quarter.
- A call option on the HUNTESTERN (37,000 dwt) was declared. The vessel is wholly owned by Broström
as from December 2007.

• Outlook
The start of 2008 has been characterised by a volatile spot market, and the view is that it will continue to be highly volatile from time to time. As a result of investments and acquisitions carried out during the years, Broström has further strengthened its position going into 2008 and forward. The underlying long-term trend for Broström’s market segment is predicted to be positive, even though major fluctuations may occur from time to time.