Torm Plc Class A · OMXCOP:TRMD_A
Torm Plc Class A — FY2014 Earnings Presentation
25 slides from Torm Plc Class A's earnings presentation, Mar 4, 2015
Slide 1: Presentation of Full-year and Q4 2014 results
Presentation of Full-year and Q4 2014 results 4 March 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement Matters discussed in this presentation may constitute forward-looking statements. Such statements reflect TORM's current expectations and are subject to certain risks and uncertainties that could negatively impact TORM's business. To understand these risks and uncertainties, pl
Slide 3: Highlights for 2014
Highlights Highlights for 2014 Tanker market Dry bulk market Finance • Full year EBITDA of USD 77m (USD 96m), and Q4 had a positive EBITDA of USD 29m 2014 • Profit before tax of USD -283m including impairments of USD 192m, which is fully aligned Results with guidance • Positive operating cash flow o
Slide 4: Full-year and Q4 2014 results
Highlights Full-year and Q4 2014 results Tanker market Dry bulk market Finance USDm Q4 2014 Q4 2013 2014 2013 2012 2011 P&L Gross profit 38 37 123 150 (93) 81 Sale of vessels 0 0 0 0 (26) (53) EBITDA 29 25 77 96 (195) (44) Profit before tax (12) (80) (283) (166) (579) (451) Balance Equity (164) 118
Slide 5: Product tanker freight rates
Highlights Product tanker freight rates Tanker market Dry bulk market Finance Freight rates in ‘000 USD/day East (Q4 2014) In the East, the earnings for the LRs peaked in November due to continued strong demand and LR2 congestion West (Q4 2014) In the West, a decrease in the price for light distilla
Slide 6: Tanker Division spot rates versus benchmark
Highlights Tanker Division spot rates versus benchmark Tanker market Dry bulk market Finance TORM spot vs. benchmark Q4 2014 (USD/day) TORM avg. Earning Benchmark (roundtrip) 30.000 -16% +2% -8% -24% 25.000 20.000 15.000 10.000 5.000 0 LR2 LR1 MR Handysize TORM spot vs. benchmark last 12 months (USD
Slide 7: Demand outlook for the product tanker market
Highlights Demand outlook for the product tanker market Tanker market Dry bulk market Finance US imports and exports of clean petroleum products* • US CPP exports to Latin America increased in Q4 ‘000 b/d driven by unplanned refinery outages (e.g. Venezuela) • European gasoline exports got a boost f
Slide 8: Supply outlook for the product tanker fleet
Highlights Supply outlook for the product tanker fleet Tanker market Dry bulk market Finance Net fleet growth y-o-y in % of total fleet (no. of vessels) • The total product tanker fleet grew by 3.4% in 2014 and is forecasted to grow by 5.7% in 2015 (in terms of no. of vessels), with the LR2 and MR s
Slide 9: Product tanker vessel prices
Highlights Product tanker vessel prices Tanker market Dry bulk market Finance Vessel price development USDm • Product tanker ordering MR - Newbuilding activity picked up in Q4 MR - 5 yr. Second-Hand 2014 compared to the previous quarter, driven by the LR1 segment • Overall ordering activity in 2014
Slide 10: Dry bulk market
Highlights Dry bulk market Tanker market Dry bulk market Finance Panamax freight rates in ‘000 USD/day • Spot rates for the relevant bulk segments remained under pressure in Q4 2014, and the average Panamax spot rates for 2014 were USD/day 7,800 (or 20% below 2013 level) • TORM continued to employ i
Slide 11: Dry bulk order book and vessel prices
Highlights Dry bulk order book and vessel prices Tanker market Dry bulk market Finance Net fleet growth y-o-y as percent of existing fleet primo 2014* 25 15 5 -5 2012 2013 2014 2015F Cape P-PMX PMX SMX Handy Panamax newbuilding and second-hand prices (USDm) * Calculated basis dwt. Number of vessels
Slide 12: TORM has a fully integrated business model
Highlights TORM has a fully integrated business model Tanker market Dry bulk market Finance TORM has maintained a fully … but TORM’s cost program has trimmed admin integrated business model… expenses significantly Admin. expenses (quarterly avg. in USDm) • TORM has a fully integrated 0 2 4 6 8 10 12
Slide 13: TORM's financial position
TORM’s financial position Highlights Tanker market Dry bulk market Finance • As at 31 December 2014, TORM’s cash and cash equivalents were USD 65m Liquidity consisting of ‒ USD 45m in cash ‒ USD 20m in undrawn Working Capital Facility • TORM has no newbuildings on order Newbuilding CAPEX • TORM has
Slide 14: TORM's forecast for 2015
TORM’s forecast for 2015 Highlights Tanker market Dry bulk market Finance • The financial results for 2015 are subject to considerable uncertainty related to the 2015 forecast completion of the proposed Restructuring Agreement • Consequently, TORM has decided not to provide earnings guidance for 201
Slide 15: Appendix
am TORM Appendix
Slide 16: TORM at a glance
TORM at a glance Key facts Global footprint based on regional power and presence A world leading product tanker company • 125+ years of history • A leading product tanker owner • Presence in dry bulk as operator Listed on NASDAQ OMX Copenhagen TORM employees: TORM Offices: ~275 Seafarers: ~2,700 • 1
Slide 17: Product tankers have coated tanks and specially designed cargo systems
Product tankers have coated tanks and have specially designed cargo systems with flexibility to transport a wide range of different products Oil product supply chain Exploration Transportation Refining Transportation Storage/distribution 11 Percentages = TORM volumes for 12-month-period (Q4 2013 – Q
Slide 18: Management team with an international outlook
Management team with an international outlook and many years of shipping experience Executive Management Executive management Jacob Meldgaard ▪ CEO of TORM since April 2010 ▪ Previously Executive Vice President of the Danish shipping company NORDEN where he was in charge of the company’s dry cargo d
Slide 19: TORM completed the restructuring with banks and time charter partners in 2012
TORM completed the restructuring with banks and time charter partners on 5 November 2012 Banks New capital Maturities for all debt amended to 31 USD 100m in working capital December 2016 *** Majority owners of the Company T/C-in partners Newbuilding program Compre- T/C-rates adjusted to market hensi
Slide 20: The TORM share
The TORM share Share information Ownership structure (31 December 2014*) TORM’s shares are listed on NASDAQ OMX Copenhagen under the ticker TORM 13.7% Shares • One class of shares, each carrying one vote • Share capital of 728m shares of DKK 0.01 each 11.5% For further company information, visit TOR
Slide 21: Industry cooperation and transparency is key to TORM's CSR
Industry cooperation and transparency is key to TORM’s Corporate Social Responsibility TORM is actively participating in… TORM has set and communicated on climate targets Set climate targets: • UN Global Compact – TORM became signatory to the • 20% reduction of CO2 emissions pr. vessel by 2020 UNGC
Slide 22: Detailed key figures overview
Detailed key figures overview USDm 2014 2013 2012 2011 2010 2009 Revenue 624 992 1,121 1,305 856 862 EBITDA 77 96 (195) (44) 97 203 Profit/(loss) before tax (283) (166) (579) (451) (136) (19) Balance Total assets 1,384 2,008 2,355 2,779 3,286 3,227 Equity (164) 118 267 644 1,115 1,247 NIBD 1,394 1,7
Slide 23: Large product tanker fleet
PER 31.12.2014 Large product tanker fleet Newbuildings and T/C-in deliveries # of vessels Current fleet with a period >= 12 months Q3 2014 Changes Q4 2014 2015 2016 2017 Owned vessels LR2 5.0 - 5.0 LR1 7.0 - 7.0 MR 20.0 - 20.0 Handysize 11.0 - 11.0 Tanker Division 43.0 - 43.0 - - - Panamax 2.0 - 2.0
Slide 24: Earning days, T/C cost and coverage for 2015, 2016 and 2017
PER 31.12.2014 Earning days, T/C cost and coverage for 2015, 2016 and 2017 2015 2016 2017 2015 2016 2017 Owned days LR2 1,782 1,815 1,825 LR1 2,510 2,546 2,555 MR 7,077 7,155 7,186 Owned days Handysize 3,797 3,960 4,015 Tanker Division 15,166 15,476 15,581 Panamax 726 728 730 Handymax - - - Bulk Div
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