Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — H1 2013 Earnings Presentation
23 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 14, 2013
Slide 1: NORDEN Results First half-year 2013
NORDEN RESULTS First half-year 2013 Hellerup, Denmark 14 August 2013 NORDEN First half-year 2013 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA Group highlights Financial highlights Market update Full year financial guidance Q & A NORDEN First half-year 2013 results | 2 Our business is global tramp shipping
Slide 3: Q2 Highlights
Q2 HIGHLIGHTS EBITDA (USDm) Key messages 44 Group EBITDA of USD 4 mill. CFFO H1 31 USD 35 mill. Cash flow from operations of 23 USD 55 mill. Gearing increasing as a result of 10 4 new investments 19 ECO vessels ordered since Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 start of Q4 2012 Gearing
Slide 4: Q2 Financials
Q2 FINANCIALS Comments USDm Q2 2012 Q1 2013 Q2 2013 Y/Y % Q/Q % CM II Group 43 22 16 -63% -28% Tanker earnings significantly better than O/A Group -12 -13 -12 3% -4% last year EBITDA Group 31 10 4 -88% -59% Dry Cargo earnings EBITDA 30 1 -2 -107% -289% Dry Cargo impacted by a weak EBITDA 4 11 8
Slide 5: Strategy Update
STRATEGY UPDATE Realised Dry Cargo volumes increased by 12% in H1 2013 Limited pursuit of growth in long-term cargo contracts Operator profit on track Focus on ECO investments in Dry Cargo The Tanker Department close to goal of 25 owned vessels Accumulated realised cargo (dry) volumes (Mnt
Slide 6: Dry Cargo Market
DRY CARGO MARKET Improving market in Q2 China Dry Cargo Import (mt) 350 Baltic Dry Index up 11.5% Q/Q 300 but down 13.3% Y/Y 250 200 China’s dry cargo imports up 5% 150 100 Q/Q and 9% Y/Y 50 - India’s coal import up 46% Y/Y Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Despite Chin
Slide 7: Dry Cargo Market
DRY CARGO MARKET H1 annualised fleet growth of 6.6% 35m dwt. delivered in H1 2013 – 45% less than a year ago 13m dwt. scrapped in H1 2013 – 30% less than H1 2012 Dry Cargo fleet development (millions dwt.) 100 20% 80 16% 60 12% 40 8% 20 4% 0 0% -20 -4% -40 -8% -60 -12% 2010 2011 2012 2013e 201
Slide 8: Tanker Market
TANKER MARKET Positive development in the Western market – driven by increasing US exports Negative development in the Eastern market – driven by declining Chinese import MR West CPP (USD/day) MR East CPP (USD/day) MR DPP (USD/day) 30.000 30.000 30.000 25.000 25.000 25.000 20.000 20.000 20.000 1
Slide 9: Tanker Market
TANKER MARKET H1 annualised fleet growth of 3.5% 2.9m dwt. delivered in H1 2013 – 30% less than a year ago 0.85m dwt. scrapped in H1 2013 – 15% less than H1 2012 Total product fleet development (millions dwt.) 12 12% 10 10% 8 8% 6 6% 4 4% 2 2% 0 0% -2 -2% -4 -4% 2010 2011 2012 2013e 2014e Real
Slide 10: 2013 Full Year Guidance
2013 FULL YEAR GUIDANCE Outlook Key assumptions USDm Dry Cargo Tanker Total Guidance based on current EBITDA 0 25-45 15-45 capacity and coverage Profit from 3 Open capacity in Tankers vessel sales employed at rates of USD CAPEX 120-140 13,100 - 13,800 per day Only known and confirmed vessel sa
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 2013 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 FOR YOUR ATTENTION Get mobile version of NORDEN’s website. Scan and add to home screen. Or go to m.ds-norden.com Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.ds-norden.com NORDEN First half-year 2013 results | 12 Our business is global tra
Slide 13: Back Up
BACK UP FORWARD LOOKING STATEMENTS NORDEN First half-year 2013 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 252 42 Dry Cargo Tanker Tanker MR Handysize One of the most modern fleets in our industry Global network of offices and port captains Pools in Dry Cargo (Handysize, Post-Panamax) and T
Slide 15: Asset Light Business Model
ASSET LIGHT BUSINESS MODEL Active fleet can quickly be adjusted to demand and market conditions Fleet employment based on portfolio view Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment Sale and purchase Customer relations Con
Slide 16: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 16,7 47,0% 5,2 5,8 2,1 12,4% 12,9% 4,4% -6,8 -15,1% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Cash flows, operations and investments Dividend yield 7,1% Excel. share buy back of 2% 541 7 298 160 120 122 -57 -80 4,0% -380 -355
Slide 17: Financial Strength = Future Growth
FINANCIAL STRENGTH = FUTURE GROWTH Strong capital structure Net committed cash Strong focus on cash flow USDm Q2 2013 Q1 2013 generation Adjusted Net Interest Bearing 278 353 Assets* Cash in low-risk deposit T/C obligations** -1.665 -1.700 accounts and securities Newbuilding installments less -2
Slide 18: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW NORDEN's Dry Cargo fleet and values at 30 June 2013 Vessel type Capesize Post-Panamax Panamax Handymax Handysize Total Vessels in operation Owned vessels 3,0 4,0 3,0 4,0 12,0 26,0 Chartered vessels with purchase option 1,0 4,0 10,0 16,0 11,0 42,0 Total active core fleet 4,0
Slide 19: Tanker Fleet Overview
TANKER FLEET OVERVIEW NORDEN's Tanker fleet and values at 30 June 2013 Vessel type MR Handysize Total Vessels in operation Owned vessels 6,0 11,0 17,0 Chartered vessels with purchase option 8,0 0,0 8,0 Total active core fleet 14,0 11,0 25,0 Chartered vessels without purchase option 11,5 5,0 16,5 Tot
Slide 20: Fleet Values and NAV
FLEET VALUES AND NAV Fleet values at 30 June 2013 USD million Owned (active and newbuildings) Broker estimated Broker C arrying value of estimated amount/ owned value of Dry Cargo Number cost vessels* charter party Added value C apesize 3,0 76 71 3 -2 Post-Panamax 4,0 130 99 -31 Panamax 5,0 109 108
Slide 21: Coverage and Capacity – Dry Cargo
COVERAGE AND CAPACITY – DRY CARGO Capacity and cov erage, Dry Cargo, at 30 June 2013 2013 2014 2015 2013 2014 2015 Owned v essels Ship days C apesize 552 1.095 1.095 Post-Panamax 736 1.460 1.460 Panamax 552 1.119 1.415 Handymax 736 1.460 2.010 Handysize 2.208 4.380 4.380 Total 4.784 9.514 10.360 Cha
Slide 22: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER Capacity and coverage, Tankers, at 30 June 2013 2013 2014 2015 2013 2014 2015 Owned vessels Ship days MR 1.257 2.619 3.777 Handysize 1.982 4.632 4.745 Total 3.239 7.251 8.522 Chartered vessels C osts for T/C capacity (USD per day) MR 3.438 5.260 3.373 14.052 14.588 15.
Slide 23: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders end 2012 16,297 registered shareholders Shareholder capital DKK 43,000,000 owning 91.4% Number of shares and 43,000,000 shares of Approx. 40% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions