Dampskibsselskabet Norden A/s · OMXCOP:DNORD

Dampskibsselskabet Norden A/s — Norden — H1 2014 Earnings Presentation

30 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 13, 2014

  1. Slide 1: NORDEN Results First half-year 2014

    NORDEN RESULTS First half-year 2014 Hellerup, Denmark 13 August 2014 NORDEN - First half-year 2014 results | 1 Our business is global tramp shipping

  2. Slide 2: Agenda

    AGENDA  Group highlights  Financials  Dry Cargo  Tankers  2014 expectations  Q & A NORDEN - First half-year 2014 results | 2 Our business is global tramp shipping

  3. Slide 3: Q2 Highlights

    Q2 HIGHLIGHTS EBITDA Key messages 20 19  EBITDA USD -7 million 15 10  Continued weakness in dry cargo market, USD million 5 4 but T/C earnings above market performance 0 -5  Disappointing MR market in Q2 -8 -8 -7 -10 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014  Market value of fleet USD 94 million A

  4. Slide 4: Poor market but strong performance in dry cargo

    FINANCIALS POOR MARKET BUT STRONG PERFORMANCE IN DRY CARGO  Group EBITDA of USD -7 million EBITDA  Dry Cargo EBITDA of USD -6 million 15 Dry Cargo 14 Tankers 10  Tanker EBITDA of USD 1 million 10 12 11 10 5 10 9 8 USD million Million USD  Strong performance in Dry Cargo 0 8 with earnings 1% high

  5. Slide 5: Market value of fleet still above book values

    FINANCIALS MARKET VALUE OF FLEET STILL ABOVE BOOK VALUES  Market value of NORDEN’s fleet continues to be above book values  Asset values have decreased through Q2  Currently limited activity in asset market and values are sliding due to disappointing charter rates 5-year secondhand prices Added v

  6. Slide 6: Adjusted exposure

    STRATEGY ADJUSTED EXPOSURE  Exposure part of Strategy adjusted due to market developments  Flexible business model utilised and activity levels adjusted downwards  No further investments made in Q2 2014  Gearing increased through 2014 to satisfactory level  2012-14 investment programme of USD ~

  7. Slide 7: Dry Cargo: current rates below 2013 levels

    DRY CARGO CURRENT RATES BELOW 2013 LEVELS  Overall BDI is up by 40% YTD Capesize Panamax mainly due to strong start to 45,000 18,000 the year, but current levels are 40,000 16,000 14,000 well below last year 35,000 12,000 30,000 USD/day USD/day 10,000 25,000 8,000 Growth in Chinese iron ore 20,000

  8. Slide 8: Market improvement still expected in H2 2014, but not up to H2 2013 levels

    DRY CARGO MARKET IMPROVEMENT STILL EXPECTED IN H2 2014, BUT NOT UP TO H2 2013 LEVELS  The deterioration of spot rates has impacted the FFA curve negatively since February  In spite of recent decline, market improvement is still expected in the second half of 2014  China is still expected to have

  9. Slide 9: Tankers: MR rates disappointed in Q2

    TANKERS MR RATES DISAPPOINTED IN Q2  MR rates in the Atlantic hit hard by US refinery maintenance  Vegetable oil trade continues to be weak  Sizeable amount LR1/LR2 vessels switched from DPP to CPP in 2013 effectively doubled supply growth West CPP East CPP DPP 45,000 45,000 45,000 40,000 40,000

  10. Slide 10: Increasing deliveries

    TANKERS INCREASING DELIVERIES  MR demand expected to pick up as US follows its usual seasonal growth pattern.  Spikes in rates in US Gulf in July  Supply growth will increase in second half of 2014 and 2015, however improved crude markets could reverse switching of LR1/LR2 vessels  New export re

  11. Slide 11: Range for full year estimate lowered to USD -60 million to 0

    RANGE FOR FULL YEAR ESTIMATE LOWERED TO USD -60 MILLION TO 0 Outlook Comments USDm Dry Cargo Tankers Total  Guidance lowered due to lower FFA rates in dry cargo and EBITDA -60 to -30 15 to 45 -60 to 0 weaker tanker market Profit from 0 vessel sales  Dry Cargo CAPEX 130-150  Q3-Q4 FFA rates have d

  12. Slide 12: 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 2014 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p

  13. Slide 13: 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 2014 results | 13 Our business is global t

  14. Slide 14: Back up

    BACK UP NORDEN - First half-year 2014 results | 14 Our business is global tramp shipping

  15. Slide 15: A leading global tramp operator

    A LEADING GLOBAL TRAMP OPERATOR Dry Cargo Capesize Post-Panamax Panamax Supramax Handysize 250 200 150 100 50 0 Dry cargo Tankers NORDEN vessels Pool vessels Tankers MR Handysize  Modern fleet  Global network of offices and port captains  Pools in Dry cargo (Handysize & Post-Panamax) and Tankers

  16. Slide 16: 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 Co

  17. Slide 17: Enabling value creation based on the cycle and throughout the cycle

    …ENABLING VALUE CREATION BASED ON THE CYCLE AND THROUGHOUT THE CYCLE Exploiting the cycle Creating value throughout the cycle Taking a view on the fundamental market and Creating value above industry level irrespective of adjusting our exposure market conditions Levers: Levers: Commercial operations

  18. Slide 18: Overall results

    OVERALL RESULTS USDm Q2 2013 Q1 2014 Q2 2014 Y/Y % Q/Q % EBITDA -2 -15 -6 -169% 62% Dry Cargo EBITDA 8 10 1 -89% -91% Tankers O/A Group -2 -3 -3 -17% -15% EBITDA 4 -8 -7 -291% 3% Group Depreciation -19 -15 -16 -17% -3% EBIT Group -16 -23 -27 -73% -20% Net profit -22 -27 -42 -86% -57% Cash from opera

  19. Slide 19: Last 5 years performance

    LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 12.4% 12.9% 5.8 5.2 4.4% 2.1 -2.9% -1.2 -15.1% -6.8 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Cash flows, operations and investments (USDm) Dividend yield 4.0% 298 7 3.3% 160 3.0% 120 122 -9 -80 -103 1.8% 1.8% -380 -355 2009

  20. Slide 20: Baltic Dry Index

    DRY CARGO BALTIC DRY INDEX Baltic Dry Index 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2011 2012 2013 2014 Source: Baltic Exchange NORDEN - First half-year 2014 results | 20 Our business is global tramp shipping

  21. Slide 21: Segment rates

    DRY CARGO SEGMENT RATES Capesize Panamax Supramax & Handysize 45,000 18,000 18,000 40,000 16,000 16,000 14,000 14,000 35,000 12,000 12,000 30,000 10,000 25,000 10,000 8,000 20,000 8,000 6,000 15,000 6,000 4,000 10,000 4,000 2,000 5,000 2,000 0 0 0 Supramax Handysize 30,000 25,000 50,000 45,000 25,00

  22. Slide 22: Regional rates

    DRY CARGO REGIONAL RATES Handysize Supramax Panamax 7 16 15 USD 1,000/day USD 1,000/day USD 1,000/day 6 14 5 12 10 10 4 8 3 5 6 2 4 1 0 2 0 0 -1 -2 -5 -2 -4 -3 -6 -10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan FebMar Apr May Jun Jul Aug Sep Oc

  23. Slide 23: Supply growth

    DRY CARGO SUPPLY GROWTH Fleet development 100.0 20% 18% 80.0 16% 14% 60.0 12% 10% Million dwt. 40.0 8% 6% 20.0 4% 2% - 0% -2% -20.0 -4% -6% -40.0 -8% 2011 2012 2013 2014e 2015e Realised additions Expected additions Realised removals Expected removals Net fleet growth (RHS) Source: Clarksons and NORD

  24. Slide 24: Financial strength

    FINANCIAL STRENGTH Strong capital structure Net committed cash  Strong focus on cash flow USDm Q2 2014 Q1 2014 generation Adjusted net interest bearing 48 165 assets*  Cash in low-risk deposit T/C obligations** -1,670 -1,839 accounts and securities Newbuilding instalments less -424 -451 proceeds f

  25. Slide 25: Fleet values

    FLEET VALUES NORDEN - First half-year 2014 results | 25 Our business is global tramp shipping

  26. Slide 26: Dry cargo fleet overview

    DRY CARGO FLEET OVERVIEW NORDEN - First half-year 2014 results | 26 Our business is global tramp shipping

  27. Slide 27: Tanker fleet overview

    TANKER FLEET OVERVIEW NORDEN - First half-year 2014 results | 27 Our business is global tramp shipping

  28. Slide 28: Dry Cargo

    DRY CARGO NORDEN - First half-year 2014 results | 28 Our business is global tramp shipping

  29. Slide 29: Tankers

    TANKERS NORDEN - First half-year 2014 results | 29 Our business is global tramp shipping

  30. Slide 30: The share (DNORD)

    THE SHARE (DNORD) Master data Composition of shareholders  13,382 registered shareholders Shareholder capital DKK 43,000,000 owning 92.1% Number of shares and 43,000,000 shares of  Approx. 40% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions None NAS

Norden — H1 2014 Earnings Presentation on 6ix