Stolt-nielsen Limited · OSL:SNI
Stolt-nielsen — Pareto Securities Energy Conference 2024
20 slides from Stolt-nielsen's conference presentation, September 2024
Slide 1: Stolt-Nielsen Limited Investor Presentation
STOLT-NIELSEN LIMITED INVESTOR PRESENTATION PARETO SECURITIES ENERGY CONFERENCE SEPTEMBER 2024 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Included in this presentation are various “forward-looking statements”, including statements regarding the intent, opinion, belief or current expectations of the Company or its management with respect to, among other things, (i) goals and strategies, (ii) plans for new dev
Slide 3: SNL at a Glance: A Leading Liquid Logistics and Aquaculture Provider
SNL at a Glance: A Leading Liquid Logistics and Aquaculture Provider $2.8bn $866m 3/4 $2.3bn 5 $4.8bn 6 7,000 2023 Operating Revenue 2023 Adjusted EBITDA Market Cap Assets People LIQUID LOGISTICS SUPPLY CHAIN SOLUTIONS AQUACULTURE INVESTMENTS TANKERS TERMINALS TANK CONTAINERS SEA FARM INVESTMENTS5 1
Slide 4: 1H24 SNL Highlights
1H24 SNL Highlights Adjusted 2Q24 YTD vs. Adjusted 2Q23 YTD OPERATING REVENUE EBITDA1 PERFORMANCE DRIVERS $ 1,448.5m $ 419.2m TCE / OP. DAY3 (US $) UTILISATION4 (%) $ 1,430.6m (+1.3%) $ 437.8m (-4.3%) +4.8% -6.2% 97.1% 91.2% 31,402 29,975 OPERATING PROFIT1 NET PROFIT1 $ 268.9m $ 204.1m Y
Slide 5: Significant Progress on Our Environmental Ambitions
Significant Progress on Our Environmental Ambitions STOLT TANKERS CARBON INTENSITY (AER)1 SUSTAINABILITY HIGHLIGHTS ▪ Two newbuilding orders totalling 12 stainless-steel A further We are ships, designed to maximise efficiency and include 31.6% 18.4% shore power and methanol readiness improvement is
Slide 6: The Case for Investing
The Case for Investing VALUE 5 STRATEGY AND 6 DRIVERS EXECUTION 1 2 3 LEADERS IN SIMPLY THE BEST FOR EXCEPTIONAL LIQUID STRONG OUR: TRACK LOGISTICS AND BALANCE ATTRACTIVE RECORD LAND-BASED SHEET AQUACULTURE ▪ SHAREHOLDERS OUTLOOK ▪ CUSTOMERS ▪ PEOPLE 4 STRONG MARKET FUNDAMENTALS Investor Presentatio
Slide 7: Stolt-Nielsen is Delivering on Years of Focused Strategy
1 Stolt-Nielsen is Delivering on Years of Focused Strategy REVENUE PROFITABILITY RETURNS (US $ m) (EBITDA US $ m)1 (Adjusted Return on Capital Employed)1 Robust revenue growth as SNL … becoming a more profitable … with an unrelenting focus on has capitalised on tightening organisation in the process
Slide 8: Our Portfolio Gets Stronger
1 Our Portfolio Gets Stronger STOLT-NIELSEN SEGMENT ASSETS ADJUSTED EBITDA DEVELOPMENT (US $m) 2016 2023 STOLT TANKERS Corp. & +89% Corp. & SSF 3% Others Others 5% SSF 3% 14% 527 STC 12% 279 US 42% ST STC 13% US 53% ST 2016 2023 $4.4bn $5.0bn SHVN 27% NON-TANKERS BUSINESSES +80% SHVN 28% 339 12%
Slide 9: Evolving Importance of Supply Chain Solutions in our Favour
2 Evolving Importance of Supply Chain Solutions in our Favour LEGACY THINKING… …IMPACT OF A VUCA1 WORLD… …LOGISTICS TODAY GEOPOLITICS C-SUITE FOCUS ENERGY TRANSITION PLANNING TRADE BARRIERS REGULATION VISIBILITY DIGITALISATION RESILIENCE/ BLACK-SWAN EVENTS FLEXIBILITY Investor Presentation 1. Volati
Slide 10: Stolt-Nielsen is a Leading Strategic Partner in Liquid Logistics
2 Stolt-Nielsen is a Leading Strategic Partner in Liquid Logistics LEADING DRY GOODS INTEGRATED >70% OF OUR TOP 50 CUSTOMERS USE MORE LOGISTICS PLAYERS THAN ONE OF OUR LIQUID LOGISTICS SERVICES TOP 50 CUSTOMERS – 20231 72% >1 SNL Service 28% Standalone Service Investor Presentation 1. Based on FY202
Slide 11: Strong Balance Sheet: Significant Financial Flexibility to Support Growth
3 Strong Balance Sheet: Significant Financial Flexibility to Support Growth REDUCING LEVERAGE1 AND NET DEBT Net Debt (US $ m) 2,209 2,315 2,312 2,038 1,761 1,975 ▪ Conservative balance sheet management >$ 1.2bn of additional debt capacity2 5.0x 4.8x 4.3x ▪ Disciplined capital allocation Target <3.5x
Slide 12: Strong Market Fundamentals
4 Strong Market Fundamentals DEMAND FUNDAMENTALS (INDEX 2000 = 100) SUPPLY FUNDAMENTALS Covid STOLT TANKERS 280 +4.0% CAGR ▪ ~2% net fleet growth expected in 260 GLOBAL CHEMICAL 2024-26E1 GLOBAL CHEMICAL DEMAND DEMAND 240 ▪ Strong MR markets limiting swing tonnage 220 1.1-1.2x ~3% MULTIPLIER OF GDP
Slide 13: Delivering Exceptional Value for Our Shareholders, Customers and People
5 Delivering Exceptional Value for Our Shareholders, Customers and People SHAREHOLDERS CUSTOMERS PEOPLE SHARE PRICE GROWTH (NOK)1 NET PROMOTER SCORE2 SUSTAINABLE EMPLOYEE +394% ENGAGEMENT +5% 423 NPS 89 35 85 86 2020 2024 2024 Customer Survey, n = 340 2020 2024 CASH RETURNS CUSTOMER & INDUSTRY A
Slide 14: Stolt-Nielsen is Outperforming Tankers and Logistics Peers
5 Stolt-Nielsen is Outperforming Tankers and Logistics Peers INDEXED SHARE PRICE DEVELOPMENT SINCE SEPTEMBER 20231 200 180 160 153 Indexed to SNI 140 142 120 100 94 80 60 01.Sep.23 01.Oct.23 01.Nov.23 01.Dec.23 01.Jan.24 01.Feb.24 01.Mar.24 01.Apr.24 01.May.24 01.Jun.24 01.Jul.24 01.Aug.24 SNL Tanke
Slide 15: Concluding Remarks
6 Concluding Remarks CONTINUED STRONG EARNINGS CASH FLOWS FOR GROWTH AND RETURNS EXPECTED IN 2H24 ▪ Balance sheet strength: new BBB-rated $450m ▪ Favourable chemical tanker fundamentals USPP supporting strong liquidity position supporting strong TCE ▪ Investing for long-term growth ▪ Contract optimi
Slide 16: [Placeholder – Udo Wrap-Up Cover Photo]
[Placeholder – Udo Wrap-Up Cover Photo] Investor Presentation September 2024 16
Slide 17: Financials: Summary Income Statement
Financials: Summary Income Statement Quarter Figures in USD millions 2Q24 2Q23 1Q24 HIGHLIGHTS (2Q24 vs 2Q23) ▪ Higher revenue driven by consolidation of SNAPS regional Operating Revenue $741.1 $721.9 $707.3 pool revenue, partly offset by lower deepsea revenues and Operating Expenses (473.8) (445.8)
Slide 18: Financials: Cash Flow and Liquidity Position
Financials: Cash Flow and Liquidity Position Quarter Figures in USD millions 2Q24 2Q23 1Q24 HIGHLIGHTS (2Q24 vs 2Q23) ▪ Cash from operating activities decreased due to $290m Cash generated from/(used in) operations ($64.1) $207.7 $173.1 payment in April 2024 to settle the MSC Flaminia legal claim In
Slide 19: Robust Financial KPIs with Significant Headroom
Robust Financial KPIs with Significant Headroom DEBT TO TANGIBLE NET WORTH (MAXIMUM 2.25:1.00) EBITDA TO INTEREST EXPENSE (MINIMUM 2.00:1.00) 3,500 1.07 1.2 1,200 6.88 1.01 1.00 7.0 3,000 0.93 0.95 5.73 5.91 5.81 1.0 1,000 5.54 LTM EBITDA-to-Interest $837 6.0 Debt-to-TNW (x) 2,500 US$ millions 2,074
Slide 20: Attractive Value Generation
Attractive Value Generation STRONG OPERATIONAL EXECUTION A LEADING END-TO-END LOGISTICS PROVIDER with favourable market fundamentals serving significant end-markets STOLT STOLTHAVEN STOLT STOLTHAVEN GLOBAL CHEMICAL TANKERS TERMINALS TANKERS TERMINALS SUPPLY CHAIN COSTS5 ▪ 2Q24 TCE 66% higher than 20
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