Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q3 2012 Earnings Presentation
22 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 14, 2012
Slide 1: NORDEN Results 3rd quarter of 2012
NORDEN RESULTS 3rd quarter of 2012 Hellerup, Denmark 14 November 2012 NORDEN 3rd quarter of 2012 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 3rd quarter of 2012 results | 2 Our business is global tramp shipping
Slide 3: Q3 Highlights
Q3 HIGHLIGHTS EBITDA (USDm) Key messages 62 Group EBITDA in line with 50 expectations in Q3 36 31 Cash flow from operations of 23 USD 29 million Increased cash position and financial flexibility Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Fleet renewal continuing Cash and securities (USDm) 7 s
Slide 4: Q3 Financials
Q3 FINANCIALS Comments USDm Q3 2011 Q2 2012 Q3 2012 Y/Y % Q/Q % CM II Group 49 43 34 -12% -20% Dry Cargo performance in line with expectations O/A Group -13 -12 -12 -10% -1% EBITDA 36 31 23 -37% -28% Tanker earnings impacted Group by weak spot market EBITDA Dry Cargo 35 30 26 -27% -13% Dry Car
Slide 5: Fleet Values
FLEET VALUES Theoretical NAV of USD 1.4 bn. - DKK 198 per share Excluding DKK 30 per share in value of TC book / cover NAV decreased by 13% due to declining value of the fleet and charter parties with purchase and extension options Value development (DKK per share) Total theoretical NAV (USDm)
Slide 6: Dry Cargo Market
DRY CARGO MARKET Continued weak market in Q3 China dry cargo imports (Mt) 300 Record N/B deliveries in Q2 Seasonal demand soft patch 280 Minor bulk imports to China 260 negatively affected by export ban in Indonesia 240 China’s coal imports down 17% 220 Q/Q 200 Demand drivers seem to be
Slide 7: Dry Cargo Market
DRY CARGO MARKET Supply growth slowing down 20m dwt delivered in Q3 - the lowest since Q2 2010 Continued high rate of scrapping – 8m dwt in Q3 Dry cargo deliveries (Mill. dwt) 60 50% 50 40% 40 30% 30 20% 20 10% 10 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Planned deliveries Actua
Slide 8: Tanker Market
TANKER MARKET Increased rates following hurricane Sandy Refinery, pipeline and terminal shutdowns Strong imports to Indonesia and Australia Peak maintenance season in Europe and China 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 20,00
Slide 9: 2012 Full Year Guidance
2012 FULL YEAR GUIDANCE Outlook Key assumptions USDm Dry Cargo Tanker Total Guidance based on current EBITDA 105-125 15-25 110-150 capacity and coverage Profit from -25 Only known and confirmed vessel sales vessel sales are included in CAPEX 10-20 guidance NORDEN 3rd quarter of 2012 results | 9
Slide 10: 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 2012 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 11: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 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 3rd quarter of 2012 results | 11 Our business is global tramp sh
Slide 12: Back Up
BACK UP FORWARD LOOKING STATEMENTS NORDEN 3rd quarter of 2012 results | 12 Our business is global tramp shipping
Slide 13: A Leading Global Tramp Operator
A LEADING GLOBAL TRAMP OPERATOR Dry cargo Capesize Post-Panamax Panamax Handymax Handysize Total active fleet 195 46 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 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 Con
Slide 15: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 16.8 16.7 70% 47% 5.2 5.8 12% 13% 2.1 4% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Cash flows, operations and investments Dividend yield 7.2% Excel. Share buyback of 6.2% 2% 467 541 298 160 120 -5 -57 -80 4.0% -355 3.3% -380
Slide 16: Financial Strength = Future Growth
FINANCIAL STRENGTH = FUTURE GROWTH Strong capital structure Net committed cash Strong focus on cash flow USDm Q3 2012 Q2 2012 generation Adjusted Net Interest Bearing 233 227 Assets* Cash in low-risk deposit T/C obligations** -1,607 -1,693 accounts and securities New building installments less -
Slide 17: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW Post- Vessel type Capesize Panamax Handymax Handysize Total Panamax Vessel in operation as of 30 of Sept. 2012 Owned vessels 3 4 5 5A 13 30 Chartered vessels with POP 1 4 11 19 10 45 Total active core fleet 4 8 16 24 23 75 Chartered vessels without POP 0 0 45 62 13 120 Total
Slide 18: Tanker Fleet Overview
TANKER FLEET OVERVIEW Vessel type LR1 MR Handysize Total Vessel in operation as of 30 of Sept. 2012 Owned vessels 0 6 11 17 Chartered vessels with POP 0 9 0 9 Total active core fleet 0 15 11 26 Chartered vessels without POP 2 9 9 20 Total active fleet 2 24 20 46 Vessels to be delivered: New building
Slide 19: Fleet Values and NAV
FLEET VALUES AND NAV Fleet values in USD mill (before tax) at 30 September 2012 Owned (active and newbuildings) Calculated value of charter parties with purchase and extension option Carrying Purchase and Value of Market Added Charter Number amount/ Number Extension charter party value* value party
Slide 20: Coverage and Capacity – Dry Cargo
COVERAGE AND CAPACITY – DRY CARGO Capacity and coverage, Dry Cargo, at 30 September2012 2012 2013 2014 2012 2013 2014 Gross capacity: Ship days Costs for gross capacity (USD per day) Capesize 364 1,460 1,460 8,974 8,974 8,974 Post-Panamax 728 2,920 2,920 11,841 11,841 11,841 Panamax 3,118 6,691 6,59
Slide 21: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER Capacity and coverage, Tanker, at 30 September 2012 2012 2013 2014 2012 2013 2014 Gross capacity: Ship days Costs for gross capacity (USD per day) LR1 42 0 0 11,900 0 0 MR 2,166 8,614 7,523 12,641 11,764 11,261 Handysize 1,595 4,895 4,596 8,744 7,745 6,836 Total 3,803
Slide 22: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders 17,492 registered shareholders Shareholder capital DKK 43,000,000 owning 89.2% Number of shares and 43,000,000 shares of Approx. 35% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions None A/S