Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — DS Norden — H1 2011 Earnings Presentation
22 slides from Dampskibsselskabet Norden A/s's earnings presentation, August 2011
Slide 1: First half-year results – August 2011
DS NORDEN First half-year results – August 2011 DS NORDEN 2nd quarter results 2011 1
Slide 2: Today's Agenda
TODAY’S AGENDA NORDEN Group highlights Financial highlights Market expectations Full year financial guidance Q&A DS NORDEN 2nd quarter results 2011 2
Slide 3: Q2 2011 Highlights
Q2 2011 HIGHLIGHTS Group financials Key messages USDm EBITDA • Group EBITDA slightly higher than expected due to a good Q2 in Tankers Settlements • On a comparable basis, EBIDTA was 8% higher than Q1 2011 • Dry Cargo earnings supported by high coverage in a weak market - Cover at 94% 60 • Better tha
Slide 4: Q2 Financials
Q2 FINANCIALS Comments 2011 Q2 Financials (USDm) Group EBITDA up 8% Q2 ’10 Q1 ’11 Q2 ’11 Y/Y % Q/Q compared to Q1 2011, % excluding one-offs in Q1 CM II Group 110 61 54 -51% -11% Dry Cargo performance in line O/A Group -12 -13 -14 20% 4% with expectations EBITDA 100 48 40 -60% -17% Tankers benefitte
Slide 5: Fleet Values
FLEET VALUES Theoretical NAV of USD 2 bn. - DKK 246 per share Comparable vessel values down by 6% in Dry and up by 1% in Tanker No need for impairment Value development Total theoretical NAV (USDm) DKK Charterparties w. purchase 132 1,968 options per share 381 Net asset value per share 660 107 1,220
Slide 6: Dry Cargo Strategy on Track
DRY CARGO STRATEGY ON TRACK Realized cargo bookings increased 40% yoy in 1H 2011 On track to reach target of 15% growth in forward cargo cover Realized cargo volumes New forward cargo bookings (YTD) Target (accumulated +15%) Target (accumulated +15%) 50 50 45 45 Million tonnes Million tonnes 40 40 3
Slide 7: Dry Cargo Market
DRY CARGO MARKET Overall market weak due to less activity and high delivery of newbuildings Smaller vessel types continued to outperform larger vessels Mil. dwt Dry Bulk Deliveries Pct High delivery schedule 50 70% expected to continue to put 45 60% pressure on market rates 40 50% 35 Overall commodi
Slide 8: Tanker Market
TANKER MARKET Oil demand expected to increase for the remainder of the year, despite of persistently high oil prices Limited fleet growth expected in NORDEN’s vessel types in 2011-14 Global Oil Demand Mill dwt Clean Tanker Fleet Growth (mb/d) 75 10.0% 91 90.6 9.0% 90.3 89.9 8.0% 90 70 89.2 89.1 89 6
Slide 9: 2011 Full Year Guidance Unchanged
2011 FULL YEAR GUIDANCE UNCHANGED Outlook Key assumptions USDm Dry Cargo Tanker Total Guidance based on current capacity and coverage EBITDA 125-155 20-30 135-175 Only known and confirmed vessel sales are included in guidance Profit from Open capacity in Tankers employed at vessel sales - rates of U
Slide 10: Forward Looking Statements
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 2011 and subsequent years are subject to uncertainty, and NORDEN’s actual results may
Slide 11: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Q&A Session DS NORDEN 2nd quarter results 2011 11
Slide 12: Back Up
BACK UP DS NORDEN 2nd quarter results 2011 12
Slide 13: A Leading Global Tramp Operator
A LEADING GLOBAL TRAMP OPERATOR Dry Cargo Product tanker Capesize MR Post-Panamax Handysize Dry cargo offices Panamax Tank & Norient Product Pool offices Port Captains Site offices at yards Handymax One of the most modern fleets in our industry Global network of offices and port captains Very strong
Slide 14: 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 Contracts of
Slide 15: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share Profit Return onfrom Equityvessel sales: USD 70m USD 18.0 16.8 16.7 80% 16.0 70% 70% 14.0 60% 12.0 47% 50% 10.0 40% 8.0 5.8 30% 27% 6.0 5.2 4.1 20% 4.0 12% 13% 10% 2.0 0.0 0% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Cash flows, operations & invest
Slide 16: Financial Strength = Future Profitable Growth Opportunities
Financial strength = future profitable growth opportunities Strong capital structure Net committed cash Gearing Strong focus on cash flow USDm Q2 2011 Q1 2011 generation Adjusted Net Interest Bearing 351 451 Assets* Cash in low-risk deposit T/C obligations** -1,924 -1,977 accounts and securities New
Slide 17: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW NORDEN's Dry Cargo fleet at 30 June 2011 Vessel type Capesize Post-Panamax Panamax Handymax Handysize Total Vessels in operation Owned vessels 3 4 3 3 6 19 Chartered vessels with purchase option 1 2 11 17 7 38 Total active core fleet 4 6 14 20 13 57 Chartered vessels without
Slide 18: Tanker Fleet Overview
TANKER FLEET OVERVIEW NORDEN's Tanker fleet at 30 June 2011 Vessel type MR Handysize Total Vessels in operation Owned vessels 5 11 16 Chartered vessels with purchase option 10 0 10 Total active core fleet 15 11 26 Chartered vessels without purchase option 3 10 13 Total active fleet 18 21 39 Vessels
Slide 19: Fleet Values and NAV
FLEET VALUES AND NAV Fleet values (before tax) at 30 June 2011 Calculated value of charter parties with purchase USD million Owned (active and newbuildings) and extension option Value of Carrying Purchase and charter party amount/ Market Charter extension and purchase Dry Cargo Number cost value* Ad
Slide 20: Coverage and Capacity – Dry Cargo
COVERAGE AND CAPACITY – Dry Cargo Capacity and coverage, Dry Cargo, at 30 June 2011 2011 2012 2013 2014+ 2011 2012 2013 2014+ Gross capacity Ship days C osts for gross capacity (USD per day) C apesize 736 1,464 1,460 12,008 8,775 8,775 8,775 6,897 Post-Panamax 1,268 2,762 2,920 34,819 10,650 11,350
Slide 21: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER Capacity and coverage, Tanker, at 30 June 2011 2011 2012 2013 2014+ 2011 2012 2013 2014+ Gross capacity Ship days C osts for gross capacity (USD per day) MR 3,870 6,993 7,714 72,768 13,113 12,584 11,766 8,248 Handysize 3,417 4,718 4,015 54,231 9,023 7,778 7,088 7,088 T
Slide 22: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders Shareholder capital DKK 44,600,000 17,751 registrered shareholders Approx. 37% international ownership Number of shares and 44,600,000 shares of Approx. 57% effective free float denomination DKK 1 Classes of shares 1 Voting and ownership Per