Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q1 2023 Earnings Presentation
26 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 3, 2023
Slide 1: Presentation of First Quarter Results 2023
PRESENTATION OF FIRST QUARTER RESULTS 2023 Copenhagen, Denmark, 3 May 2023
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. First quarter 2023 highlights 02. Business unit performance • Freight Services & Trading • Assets & Logistics 03. Market development & outlook 04. Guidance for 2023 and sum-up 2 PRESENTATION OF Q1 RESULTS 2023
Slide 3: First Quarter Highlights
01. FIRST QUARTER HIGHLIGHTS 3 PRESENTATION OF Q1 RESULTS 2023
Slide 4: Q1 2023 Highlights: Business Update
01. Q1 2023 HIGHLIGHTS BUSINESS UPDATE GROUP PROFIT LAST FIVE QUARTERS USD million PROFIT FOR Q1 2023: USD 150 MILLION 300 250 243 • Freight Services & Trading: USD 67 million 205 • Assets & Logistics: USD 83 million 200 179 150 150 117 100 50 BUSINESS HIGHLIGHTS 0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1
Slide 5: Q1 2023 Highlights: Adding Dry Cargo Capacity
01. Q1 2023 HIGHLIGHTS ADDING DRY CARGO CAPACITY Increased net dry cargo vessel days in line with improved Gradually reducing high tanker exposure, while adding capacity in market outlook dry cargo FST total dry cargo forward position in vessel days Relative segment exposure – entire NORDEN business
Slide 6: Q1 2023 Highlights: Shareholder Cash Distribution
01. Q1 2023 HIGHLIGHTS SHAREHOLDER CASH DISTRIBUTION • Interim dividend of DKK 15 per share for Q1 • Returned approx. USD 885 million to shareholders since 2020 • Net share count reduced by 19% since start of 2020 Shareholder cash distributions since 2020 2023 YTD 150 50 75 2022 744 130 145 280 2021
Slide 7: Business Unit Performance
02. BUSINESS UNIT PERFORMANCE 7 PRESENTATION OF Q1 RESULTS 2023
Slide 8: Freight Services & Trading: Strong Tanker Earnings
02. FREIGHT SERVICES & TRADING STRONG TANKER EARNINGS WHILE MAINTAINING DRY CARGO VOLUMES RESULT PER VESSEL DAY Q1 PROFIT 2023: USD 67 MILLION USD / day 3,500 3,297 • Strong tanker earnings, utilising high exposure to a volatile market 3,000 - Trade flows increasingly shifted towards Far East region
Slide 9: Assets & Logistics: Converting Market Values to Strong Sales Gains
02. ASSETS & LOGISTICS CONVERTING MARKET VALUES TO STRONG SALES GAINS AND COVER EARNINGS Pay-out of DKK NAV PER SHARE (END Q1) 60 in dividends Q1 PROFIT 2023: USD 83 MILLION DKK during period 500 • Slight decrease in BU NAV, ending at USD 1.8 billion, equal to DKK 381 per share 446 450 422 400 377 3
Slide 10: Assets & Logistics: Extensive Optionality Provides Upside Value
02. ASSET & LOGISTICS EXTENSIVE OPTIONALITY PROVIDES UPSIDE VALUE • ~64,000 extension option days in total • Extension options: 191 options in total (118 options on dry cargo vessels and 73 on tanker vessels) • Purchase options: 80 options in total (51 in dry cargo, 29 in tankers) EXTENSION OPTIONS
Slide 11: Business Units Valuation
02. BUSINESS UNITS VALUATION ASSETS & LOGISTICS FREIGHT SERVICES & TRADING Asset trading and active portfolio management of Global freight services and trading in the dry owned and leased vessels. Investments in port cargo and product tanker markets logistics aimed at optimising supply chains NAV-ba
Slide 12: Market Development and Outlook
03. MARKET DEVELOPMENT AND OUTLOOK 12 PRESENTATION OF Q1 RESULTS 2023
Slide 13: Markets: Dry and Tanker Market in Q1
03. MARKETS DRY AND TANKER MARKET IN Q1 Dry cargo market bottomed out Continued strong and volatile tanker market • Dry cargo rates bottoming out in early Q1, followed by strong upturn • Spot rates on MR vessels remain highly volatile across regions • Gradual improvements at end of quarter following
Slide 14: Market Outlook in Dry Cargo
03. MARKETS MARKET OUTLOOK IN DRY CARGO Gradual improvements on the horizon Vessel supply growth remains low • Continued gradual improvement in line with China reopening • Asset values expected to be supported by historically low orderbooks • Weaker economic growth in rest of the world likely to lim
Slide 15: Market Outlook in Tanker
03. MARKETS MARKET OUTLOOK IN TANKER Strong and volatile tanker rates expected to remain Low fleet growth supporting asset prices and period rates • Product tanker market expected to remain strong • Historically low orderbook at 6%, but ordering picking up slightly - Support from inefficiencies incl
Slide 16: Guidance and Sum-up
04. 2022 GUIDANCE AND SUM-UP 16 PRESENTATION OF Q1 RESULTS 2023
Slide 17: 2023 Guidance
04. GUIDANCE 2023 GUIDANCE Full-year guidance for 2023 profit: USD 330-430 million ASSETS & LOGISTICS FREIGHT SERVICES & TRADING • Expects slightly improved earnings in 2023 compared to 2022 • Significantly lower result expected for 2023 compared to 2022 • High coverage of tanker fleet at considerab
Slide 18: Strong Start to the Year
04. FINAL WORDS STRONG START TO THE YEAR • Profit of USD 150 million and ROE of 40% • Paying out interim dividend of DKK 15 per share • Good margins in FST of USD 1,700 per day • BU NAV at USD 1.8 billion, equal to DKK 381 per share • Solid sales gains and cover earnings • Entering Capesize segment,
Slide 19: Disclaimer: Forward Looking Statements
04. FINAL WORDS – DISCLAIMER 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 2023 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 20: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.com Connect with us 20 PRESENTATION OF Q1 RESULTS 2023
Slide 21: Appendix - About NORDEN
APPENDIX - ABOUT NORDEN 21 PRESENTATION OF Q1 RESULTS 2023
Slide 22: We Enable Smarter Global Trade
WE ENABLE SMARTER GLOBAL TRADE COPENHAGEN, DENMARK VANCOUVER, CANA DA ANNA POLIS, LIMASSOL, TOKYO, USA CYPRUS JAPAN SHA NGHA I, CHINA DUBAI, UNITED ARAB EMIRATES ABIDJAN, IVORY COAST LIBREV ILLE, SINGAPORE GABON RIO DE JANEIRO, BRAZIL SANTIAGO, CHILE MELBOURNE, AUSTRALIA We are more than Tonnes of c
Slide 23: Business Units
BUSINESS UNITS ASSETS & LOGISTICS FREIGHT SERVICES AND TRADING Asset Management Logistics & Climate solutions Asset-Light Freight Services Dry cargo Product tanker Port logistics & Construction Foods & oils Energy Industrial vessels vessels decarbonisation • Asset trading of owned vessels • Integrat
Slide 24: NORDEN Strategy 2023-2025
NORDEN STRATEGY 2023-2025 HIGH-PERFORMING THE CUSTOMER ORGANISATION • Structured approach to large customers • Next-level leadership and development of our people • Securing the next projects in Logistics & Climate Solutions • Improve feedback culture • Expanding the NORDEN Tanker Pool • Data and an
Slide 25: NORDEN at a Glance
NORDEN AT A GLANCE 2008: NORDEN moves into its new 1973: domicile Bryghuset. 2021: NORDEN celebrates 150 The first of 5 dry cargo vessels is years of sailing the seven seas. delivered from Japan, and NORDEN enters what today is 1871: 1923: the core business of the Company. 2013: Mads C. Holm NORDEN’
Slide 26: Macrotrends Affecting Shipping and NORDEN Strategy
Macrotrends affecting shipping NORDEN strategy Delivering smarter global trade Geopolitical for our customers and partners complexity High-performing organisation in a value-based culture Market volatility Tradable positions and focus on optionality Digitalisation Data, analytics and risk management
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