Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — FY2021 Earnings Presentation
21 slides from Dampskibsselskabet Norden A/s's earnings presentation, Mar 3, 2022
Slide 1: Presentation of Full-Year 2021 Results
PRESENTATION OF FULL-YEAR 2021 RESULTS Copenhagen, Denmark, 3 March 2022
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Full-year 2021 highlights 02. Business unit performance • Asset Management • Dry Operator • Tanker Operator 03. Business unit structure in 2022 04. Market development & outlook 05. Guidance for 2022 06. Final words and Q&A 2 PRESENTATION OF FULL-YEAR 2021
Slide 3: Full-Year 2021 Highlights
01. FULL-YEAR 2021 HIGHLIGHTS 3 PRESENTATION OF FULL-YEAR 2021
Slide 4: Business Update
01. FULL-YEAR 2021 HIGHLIGHTS BUSINESS UPDATE PROFIT/LOSS LAST 5 YEARS 300 250 280 Full-year profit for the year of USD 205 million 205 200 • Best result in 11 years USD million 150 86 210 100 50 25 29 19 • Sustained profitability and activity growth over past five years 0 - Average increase in vess
Slide 5: Business Unit Performance
02. BUSINESS UNIT PERFORMANCE 5 PRESENTATION OF FULL-YEAR 2021
Slide 6: Asset Management
02. ASSET MANAGEMENT ACTIVE ASSET TRADING AND PROFITABLE FORWARD COVER PROFIT FOR FY 2021: USD 5 MILLION PROFIT/LOSS FOR THE PAST 8 QUARTERS • Value of Asset Management’s portfolio increased to USD 1.3 billion 15 10 • Net asset value of DKK 262 per share 5 • Vessel sales gain of USD 7 million - conv
Slide 7: Extensive Optionality in Portfolio
02. ASSET MANAGEMENT EXTENSIVE OPTIONALITY IN PORTFOLIO • 65,754 period option days in total, corresponding to ~180 full-year extension options • Purchase options: 71 options in total (51 in dry cargo, 20 in tankers); 53 of these options callable by end-2024 • Period extension options: 37 options on
Slide 8: Dry Operator
02. DRY OPERATOR EXTRAORDINARY RESULTS, UTILISING MARKET VOLATILITY QUARTERLY RESULTS 130 PROFIT FOR FY 2021: USD 230 MILLION 110 90 • Extraordinary result and record high activity levels USD million 70 57.4 • Utilising market volatility and capturing upside: 50 - Taking in extensive number of vesse
Slide 9: Tanker Operator Positioned for Market Improvements in H2 2022
02. TANKER OPERATOR POSITIONED FOR MARKET IMPROVEMENTS IN H2 2022 QUARTERLY RESULTS LOSS FOR FY 2021: USD -30 MILLION 20 • Operating in historically weak markets USD million 10 4.4 4.6 • Adjusted portfolio through added T/C capacity and extension options 0 • Positioned for market improvements in sec
Slide 10: Business Unit Structure in 2022
03. BUSINESS UNIT STRUCTURE IN 2022 10 PRESENTATION OF FULL-YEAR 2021
Slide 11: Business Units (as of January 2022)
3. BUSINESS UNITS (AS OF JANUARY 2022) 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 cha
Slide 12: Business Units Valuation
03. 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 13: Market Development and Outlook
04. MARKET DEVELOPMENT AND OUTLOOK 13 PRESENTATION OF FULL-YEAR 2021
Slide 14: Dry and Tanker Market in Q4 2021
04. MARKETS DRY AND TANKER MARKET IN Q4 2021 Brief dry cargo market dip and rebound Weak tanker market with slight year-end increase • China’s economic activity slowed significantly • Increased crude oil in transit in Q4 combined with low inventory levels • Brief but steep drop in both asset prices
Slide 15: Market Outlook in Dry Cargo
04. MARKETS MARKET OUTLOOK IN DRY CARGO Expected to remain strong in 2022 Low supply growth supporting strong market • Asset prices and period rates to remain strong during 2022 • Low newbuilding contracting of 4% (rolling average) • COVID-19 continues to pose a threat to supply chains • Containersh
Slide 16: Market Outlook in Tanker
04. MARKETS MARKET OUTLOOK IN TANKER Improved fundamentals, expecting better H2 Low net supply growth of vessels • Global oil inventories drawn down to 10-year lows • Supply growth remains low, supported by increased vessel scrapping • Oil products demand has moved beyond pre-covid 19 levels • Delay
Slide 17: 2022 Guidance and Final Words
05. 2022 GUIDANCE AND FINAL WORDS 17 PRESENTATION OF FULL-YEAR 2021
Slide 18: 2022 Guidance
05. 2022 GUIDANCE NORDEN guidance for FY 2022 profit for the year: USD 210 to 280 million (incl. currently known vessel sales gains of USD 37 million) • Expecting improved profit for the year based on good positioning in a continued strong and volatile dry cargo market • Dividend policy: to pay out
Slide 19: Outstanding Year for NORDEN
05. FINAL WORDS OUTSTANDING YEAR FOR NORDEN • Best annual result in 11 years with profit of USD 205 million - Return on equity increased from 10% to 22% • Strong track record: Sustained profitability and activity growth over past five years in volatile markets • Consolidated business model into two
Slide 20: Forward Looking Statements
05. 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 2022 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 21: 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 21 PRESENTATION OF FULL-YEAR 2021
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