Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q1 2022 Earnings Presentation
25 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 5, 2022
Slide 1: Presentation of First Quarter 2022 Results
PRESENTATION OF FIRST QUARTER 2022 RESULTS Copenhagen, Denmark, 5 May 2022
Slide 2: Agenda for Today
AGENDA FOR TODAY 01. First quarter 2022 highlights 02. Business unit performance • Assets & Logistics • Freight Services & Trading 03. Market development & outlook 04. Guidance for 2022 and sum-up PRESENTATION OF FIRST QUARTER 2022
Slide 3: First Quarter 2022 Highlights
01. FIRST QUARTER 2022 HIGHLIGHTS PRESENTATION OF FIRST QUARTER 2022
Slide 4: First Quarter 2022 Highlights: Business Update
01. FIRST QUARTER 2022 HIGHLIGHTS BUSINESS UPDATE GROUP PROFIT/LOSS LAST FIVE QUARTERS GROUP HIGHLIGHTS 130 123 117 PROFIT FOR Q1 2022: USD 117 MILLION 100 • Great result and start to the year, above seasonal normal USD million 70 65 • Strong performance in both business units 40 32 • Continued to c
Slide 5: Business Unit Performance
02. BUSINESS UNIT PERFORMANCE PRESENTATION OF FIRST QUARTER 2022
Slide 6: Assets & Logistics: Profitable Dry Cargo Cover & Strong Vessel Sales Gains
02. ASSET & LOGISTICS PROFITABLE DRY CARGO COVER & STRONG VESSEL SALES GAINS PROFIT FOR Q1 2022: USD 41 MILLION PROFIT/LOSS FOR THE PAST 8 QUARTERS • Realised gains on strong dry cargo market through: 50 41 - Profitable dry cargo cover in 2022 at high rates 40 - Increasing dry cargo forward cover fo
Slide 7: Assets & Logistics: Extensive Optionality in Portfolio
02. ASSET & LOGISTICS EXTENSIVE OPTIONALITY IN PORTFOLIO • ~65,000 extension option days in total, corresponding to ~178 full-year extension options • Extension options: 80 options in total (58 options on dry cargo vessels and 22 on tanker vessels) • Purchase options: 77 options in total (55 in dry
Slide 8: Freight Services & Trading: Substantial Profit from Utilising Volatility
02. FREIGHT SERVICES & TRADING SUBSTANTIAL PROFIT FROM UTILISING VOLATILITY QUARTERLY RESULTS PROFIT FOR Q1 2022: USD 76 MILLION 130 110 • Secured strong margins amid high market volatility through: 90 75,7 - Increased exposure on right vessel types USD million 70 49,9 - Regional arbitrage with good
Slide 9: 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 10: Market Development and Outlook
03. MARKET DEVELOPMENT AND OUTLOOK PRESENTATION OF FIRST QUARTER 2022
Slide 11: Dry and Tanker Market in Q1 2022
03. MARKETS DRY AND TANKER MARKET IN Q1 2022 Continuation of the strong market witnessed in 2021 Tanker market improving strongly after weak Q1 • Strong spot rates, indicating firm market above normal Q1 season • 1-year T/C MR eco rate remained around USD 15,600/day • Market inefficiencies and high
Slide 12: Market Outlook in Dry Cargo
03. MARKETS MARKET OUTLOOK IN DRY CARGO Market in 2022 to remain above historical levels Low supply growth limiting downside risk • Market rates and prices expected slightly lower, but above historical average • Low newbuilding contracting of 4% (rolling average) • Long-term impact of Ukraine/Russia
Slide 13: Market Outlook in Tanker
03. MARKETS MARKET OUTLOOK IN TANKER Significantly improved spot market expected to continue Low fleet growth supports market • After Q1, significant regional spikes in MR spot rates • Supply growth remains low, supported by increased vessel scrapping (USD +50,000 per day in US-Gulf, USD +30,000 per
Slide 14: 2022 Guidance and Sum-up
04. 2022 GUIDANCE AND SUM-UP PRESENTATION OF FIRST QUARTER 2022
Slide 15: 2022 Guidance
04. 2022 GUIDANCE NORDEN guidance for FY 2022 profit for the year: USD 270 to 350 million (incl. sales gains of USD 28 million from already sold vessels) • Dry cargo: Based on good positioning and active trading in a continued strong and volatile dry cargo market • Product tanker: Substantial increa
Slide 16: Great Start to the Year
04. FINAL WORDS GREAT START TO THE YEAR • Great first quarter result of USD 117 million • Strong performance in both business units • Realising gains on strong dry cargo market • Shifting exposure to a stronger product tanker market with favourable vessel positioning • Guidance raised late April: Pr
Slide 17: 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 2022 and subsequent years are subject to uncertainty, and NORDEN’s actual
Slide 18: 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 PRESENTATION OF FIRST QUARTER 2022
Slide 19: Appendix - About NORDEN
APPENDIX - ABOUT NORDEN PRESENTATION OF FIRST QUARTER 2022
Slide 20: Enabling Smarter Global Trade
ENABLING SMARTER GLOBAL TRADE 150 YEARS OF HONOURING OUR COMMITMENTS People & Data Our values Industry leader 376 6.4 ~450 0 Employees Billion datapoints Reliability Flexibility Empathy Ambition Operated vessels Net zero carbon emissions daily 92% chartered / 8% owned by 2050 PRESENTATION OF FIRST Q
Slide 21: Market trends: Increased focus on asset-light freight services and logistics
02. NORDEN STRATEGY Market trends: Increased focus on asset-light freight services and logistics Major trends affecting shipping NORDEN strategy Customer centric freight services Market across all continents volatility Digitalisation Optionality upside on leased vessels Geopolitical Tradable assets
Slide 22: Organisational structure: A customer, trading and data-driven NORDEN
Organisational structure: A customer, trading and data-driven NORDEN ASSETS & LOGISTICS FREIGHT SERVICES AND TRADING Asset Management Logistics & Climate solutions Asset-Light Freight Services Dry cargo Product tanker Port logistics Decarbonisation Construction Foods & oils Energy Industrial vessels
Slide 23: 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 24: Five external factors have driven NORDEN's climate strategy
Five external factors have driven NORDEN’s climate strategy Investor demand • Investors seek out sustainable companies as being more Climate crisis successful • The world faces an urgent carbon problem • 3% of carbon emissions are from shipping New regulations • An ambition to stay ahead of environm
Slide 25: Our ambition is to help our customers decarbonise their supply chains
Our ambition is to help our customers decarbonise their supply chains. To do this we will bring them accurate transparency on the carbon footprint of every freight transport, and we will work with our partners to co-create competitive greener shipping solutions Carbon emissions Greener shipping Zero