Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — FY2022 Earnings Presentation
26 slides from Dampskibsselskabet Norden A/s's earnings presentation, Feb 10, 2023
Slide 1: Presentation of Full Year Results 2022
PRESENTATION OF FULL YEAR RESULTS 2022 Copenhagen, Denmark, 10 February 2023
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. Full-year 2022 highlights 02. Business unit performance • Assets & Logistics • Freight Services & Trading 03. Market development & outlook 04. Guidance for 2023 and sum-up 2 PRESENTATION OF FULL-YEAR 2022
Slide 3: Full-Year 2022 Highlights
01. FULL-YEAR 2022 HIGHLIGHTS We sailed 24 million nautical miles in 2022. That is equal to sailing three times 3 PRESENTATION OF FULL-YEAR 2022 around the globe every day
Slide 4: Business Update
01. FULL-YEAR 2022 HIGHLIGHTS BUSINESS UPDATE GROUP PROFIT LAST FIVE QUARTERS USD million PROFIT FOR FY 2022: USD 744 million 300 • Assets & Logistics: USD 193 million 243 250 • Freight Services & Trading: USD 550 million 205 200 179 150 123 117 100 BUSINESS HIGHLIGHTS 50 0 • Best results in NORDEN’
Slide 5: Large Shift in Exposure in Two Volatile Markets
01. FULL-YEAR 2022 HIGHLIGHTS LARGE SHIFT IN EXPOSURE IN TWO VOLATILE MARKETS Relative segment exposure – entire NORDEN business Relative segment risk in % of total 90% 80% Summary of group exposure (both business units) • Large shift from dry cargo to product tankers in Q2 2022 70% • Benefitting fr
Slide 6: Shareholder Cash Distribution
01. FULL-YEAR 2022 HIGHLIGHTS SHAREHOLDER CASH DISTRIBUTION • Returned more than USD 750 million to shareholders since 2020 • Combined dividends of DKK 90 per share based on FY2022 results = Pay-out ratio of 57% • Share buy-back programmes of USD 130 million in 2023 • Net share count reduced by 9% s
Slide 7: Business Unit Performance
02. BUSINESS UNIT PERFORMANCE In 2022, we carried enough grains to feed almost half a billion people for a year. 7 PRESENTATION OF FULL-YEAR 2022 That is equivalent to the entire South American population
Slide 8: Assets & Logistics: Exposure Shift Benefitting Portfolio Value
02. ASSETS & LOGISTICS EXPOSURE SHIFT BENEFITTING PORTFOLIO VALUE DKK NAV per share (end Q4) 500 FULL-YEAR PROFIT 2022: USD 193 MILLION 450 446 422 • Significant increase in BU NAV, reaching USD +2 billion, equal to 422 per share 400 377 350 • Captured high dry cargo values by reducing position ahea
Slide 9: Assets & Logistics: Extensive Optionality in Portfolio
02. ASSET & LOGISTICS EXTENSIVE OPTIONALITY IN PORTFOLIO • ~60,000 extension option days in total, corresponding to ~164 full-year extension options • Extension options: 78 options in total (51 options on dry cargo vessels and 27 on tanker vessels) • Purchase options: 77 options in total (50 in dry
Slide 10: Freight Services & Trading: Record Margins in Two Volatile Markets
02. FREIGHT SERVICES & TRADING RECORD MARGINS IN TWO VOLATILE MARKETS RESULT PER VESSEL DAY USD/day FULL-YEAR PROFIT 2022: USD 550 MILLION 3.500 3.297 3.000 • Daily margins more than doubled, capturing substantial value in both markets. 2.500 • Significant dry cargo earnings in both firm and weak ma
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 Cleaning a ship hull saves on average 2,400 tonnes of CO2 in a normal operating year. 12 PRESENTATION OF FULL-YEAR 2022 Every year, we clean more than 300 vessels
Slide 13: Dry and Tanker Market in Q4
03. MARKETS DRY AND TANKER MARKET IN Q4 Further weakening of dry cargo market Soaring and volatile product tanker rates • Continuation of market decline – lower congestion and container spillover • Refineries working at full capacity, supporting increased vessel demand • Considerably less commodity
Slide 14: Market Outlook in Dry Cargo
03. MARKETS MARKET OUTLOOK IN DRY CARGO 2023 expected to be weaker than 2022 Vessel supply growth remains low • Main weakness during H1 2023, H2 probably stronger • Low orderbook a limit on any prolonged and deep downturn • Macro economic slowdown limiting growth in commodity volumes • Expected glob
Slide 15: Market Outlook in Tanker
03. MARKETS MARKET OUTLOOK IN TANKER Strong base case Low fleet growth supporting asset prices and period rates • Market expected to remain strong and volatile in 2023 • Historically low orderbook below 5% • Sanctions leading to longer trading routes and more ballasting • Limited yard capacity on MR
Slide 16: Guidance and Sum-Up
04. 2022 GUIDANCE AND SUM-UP We carried enough jet fuel in 2022 to keep a Boeing 747 flying for 30 years – non-stop 16 PRESENTATION OF FULL-YEAR 2022
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: Best Result in NORDEN's History
04. FINAL WORDS BEST RESULT IN NORDEN’S HISTORY • Profit of USD 744 million and ROE of 64% • Strong earnings in both a declining dry cargo market and a surging tanker market • Large shift in exposure benefitting portfolio value, trading results and future earnings • BU NAV reaching USD 2 billion, eq
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 Each year, we transport 7 million tonnes of cement, used in the production of bridges, building and roads. The constant demand makes cement the s
Slide 21: Appendix - About NORDEN
APPENDIX - ABOUT NORDEN 21 PRESENTATION OF FULL-YEAR 2022
Slide 22: We Enable Smarter Global Trade
WE ENABLE SMARTER GLOBAL TRADE We are more than Tonnes of cargo carried Data points processed daily More than 425 140 m 9.4 bn 450 employees the last 12 months to support decisions vessels operated 22 PRESENTATION OF FULL-YEAR 2022
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, NORDEN Strategy
Macrotrends affecting shipping NORDEN strategy Delivering smarter global trade for Geopolitical complexity our customers and partners High-performing organisation Market volatility in a value-based culture Tradable positions and Digitalisation focus on optionality Data, analytics and risk management
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