Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q3 2011 Earnings Presentation
23 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 15, 2011
Slide 1: NORDEN Results 3rd quarter of 2011
NORDEN RESULTS 3rd quarter of 2011 Hellerup, p, Denmark 15 November 2011 NORDEN 3rd quarter of 2011 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA f Group highlights f Financial highlights f Market expectations f Full year financial guidance f Q&A NORDEN 3rd quarter of 2011 results | 2 Our business is global tramp shipping
Slide 3: Q3 Highlights
Q3 HIGHLIGHTS EBITDA Key messages USDm f Group EBITDA up 65% on last Settlements year and 11% lower than in Q2 2011 f High coverage in Dry Cargo contributed positively to 60 39 37 40 36 earnings – Fully covered for 22 2011 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 f Strong cash position and Ca
Slide 4: Q3 Financials
Q3 FINANCIALS Comments USDm Q3 2010 Q2 2011 Q3 2011 Y/Y % Q/Q % f Dry Cargo benefitted CM II Group 36 54 49 36% -9% f from improved market O/A Group -14 -14 -13 -7% -7% conditions EBITDA 22 40 36 64% -10% Group f Tankers pperformance in EBITDA line with expectations Dry Cargo 27 32 35 30% 9% f 7 own
Slide 5: Fleet Values
FLEET VALUES f Theoretical NAV of USD 1.9 bn. - DKK 249 per share f NAV increased by 1% despite drops of 7% and 3% in Dry Cargo and Tanker vessel values f No need for impairment Value development (DKK per share) Total theoretical NAV (USDm) 346 132 1 861 1.861 269 313 308 639 78 275 1222 246 249 -22
Slide 6: Dry Cargo Market
DRY CARGO MARKET Mil. dwt Dry Bulk Deliveries Pct f Strong market in Q3, 50 60% despite high vessel 45 delivery 50% 40 f YTD 34% of planned 35 40% orders were not 30 delivered 25 30% f Still very strong t 20 20% commodity demand 15 10 f Scrapping pp g exceeded 10% 5 expectations 0 0% Q1 Q2 Q3 Q4 Q1
Slide 7: Japan Regaining Strength
JAPAN REGAINING STRENGTH f Japan showed signs of increased demand during Q3 f Record-high thermal coal imports in August f Highest monthly iron ore imports since before the financial crisis Japan Coal Imports Japan Iron Ore & Concentrates Imports 11 15 9 13 nnes nes Million ton Million tonn 11 7 9 5
Slide 8: Chinese Iron Ore Imports
CHINESE IRON ORE IMPORTS f YTD China imported 509 million tonnes of iron ore f 11% up compared to last year f Increasing tonne-mile expected due to changing trading patterns Chinese iron ore imports 35 30 25 nnes Million ton 20 15 10 5 0 jan-09 maj-09 sep-09 jan-10 maj-10 sep-10 jan-11 maj-11 sep-11
Slide 9: Tanker Market
TANKER MARKET f Oil demand is expected to continue growing, despite of persistently high oil prices f Fleet growth to decline further in NORDEN’s vessel types f 3.7% in 2012 and 2.6% in 2013 Global oil demand (mb/d) Clean tanker fleet growth 96 95 3 95,3 4 0% 4,0% 3,6% 3 7% 3,7% 94,2 3,5% 94 3,5% 93
Slide 10: 2011 Full Year Guidance
2011 FULL YEAR GUIDANCE Outlook Key assumptions USDm Dry Cargo Tanker Total f Guidance based on current EBITDA 150-170 20-30 160-180 capacity and coverage Profit from - vessel sales f Only known and confirmed vessell sales l are iincluded l d d iin EBIT 80-100 guidance CAPEX 295-335 f Open capacity
Slide 11: Forward Looking Statements
This presentation contains certain forward-looking statements reflecting the management’s present judgment of future events and financial results. Statements relating to the remainder of 2011 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 12: Thank you for your attention
THANK YOU OU FOR O YOUR OU ATTENTION O Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www ds norden com www.ds-norden.com NORDEN 3rd quarter of 2011 results | 12 Our business is global tramp shipping
Slide 13: Back Up
BACK UP FORWARD LOOKING STATEMENTS NORDEN 3rd quarter of 2011 results | 13 Our business is global tramp shipping
Slide 14: A Leading Global Tramp Operator
A LEADING GLOBAL TRAMP OPERATOR Dry cargo Capesize Post-Panamax Panamax Handymax Handysize Total active fleet 200 176 150 100 40 50 0 Dry Cargo Tanker Tanker MR Handysize f One of the most modern fleets in our industry f Global network of offices and port captains f Pools in Dry Cargo (Handysize, Po
Slide 15: Asset Light Business Model
ASSET LIGHT BUSINESS MODEL f Active fleet can quickly be adjusted to demand and market conditions f Fleet employment based on portfolio view f Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment f Sale and purchase f Customer relations Con
Slide 16: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 18 16,8 16,7 80% 70% 16 70% 14 60% 12 47% 50% 10 40% 8 27% 5,2 5,8 30% 6 4,1 4 20% 12% 13% 1,4 10% 4% 2 0 0% 2006 2007 2008 2009 2010 2011 Q Q3 2006 2007 2008 2009 2010 2011 Q Q3 Cash flows, operations and investments Dividend yield
Slide 17: Financial Strength = Future Growth
FINANCIAL STRENGTH = FUTURE GROWTH Strong capital structure Net committed cash f Strong focus on cash flow USDm Q3 2011 Q2 2011 generation Adjusted Net Interest Bearing 263 351 Assets* f Cash in low-risk deposit T/C obligations** -1,834 -1,924 accounts and securities New building installments less p
Slide 18: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW NORDEN's Dry Cargo fleet and values at 30 September 2011 Vessel type Capesize Post-Panamax Panamax Handymax Handysize Total Vessels in operation Owned vessels 3 4 4 3 7 21 Ch t Charteredd vessels l w ith purchase h option ti 1 3 11 17 7 39 Total active core fleet 4 7 15 20 1
Slide 19: Tanker Fleet Overview
TANKER FLEET OVERVIEW NORDEN's Tanker fleet and values at 30 September 2011 Vessel type MR Handysize Total Vessels in operation Owned vessels 6 11 17 Chartered vessels w ith purchase option 10 0 10 Total active core fleet 16 11 27 Chartered vessels w ithout purchase option 4 9 13 Total active fleet
Slide 20: Fleet Values and NAV
FLEET VALUES AND NAV Fleet values (before tax) at 30 September 2011 Calculated value of charter parties with purchase USD million Owned (active and newbuildings) and extension option Value of Carrying Purchase and charter party amount/ Market Charter extension and purchase Dry y Cargo g Number cost
Slide 21: Coverage and Capacity – Dry Cargo
COVERAGE AND CAPACITY – DRY CARGO Capacity and coverage, Dry Cargo, at 30 September 2011 2011 2012 2013 +2014 2011 2012 2013 +2014 Gross capacity Ship days C osts for gross capacity (USD per day) C apesize 368 1,464 1,460 12,008 8,775 8,775 8,775 6,897 Post-Panamax 644 2,962 3,285 34,952 10,773 11,3
Slide 22: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER Capacity and coverage, Tankers, at 30 September 2011 2011 2012 2013 +2014 2011 2012 2013 +2014 Gross capacity Ship days C osts for gross capacity (USD per day) MR 1,932 7,126 7,540 69,831 12,999 12,709 11,666 8,225 Handysize 1,747 5,245 4,015 54,231 9,149 8,253 7,088 7
Slide 23: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders f 17,660 registered shareholders Shareholder capital DKK 43 43,000,000 000 000 f Approx. 37% international Number of shares and 43,000,000 shares of ownership denomination DKK 1 f Approx. pp 57% effective free float Classes of shares 1 Voting