Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q1 2024 Earnings Presentation
36 slides from Dampskibsselskabet Norden A/s's earnings presentation, Apr 25, 2024
Slide 1: Presentation of First Quarter Results 2024
PRESENTATION OF FIRST QUARTER RESULTS 2024 Copenhagen, Denmark, 25 April 2024
Slide 2: 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 2024 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ
Slide 3: Key Statements and Highlights First Quarter 2024
KEY STATEMENTS AND HIGHLIGHTS FIRST QUARTER 2024 3 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 4: Key Statements for Q1 2024 Business Highlights
KEY STATEMENTS FOR Q1 2024 BUSINESS HIGHLIGHTS • A first quarter characterised by volatility and uncertainties related to macroeconomics and geopolitical events, particular around Middle East and Red Sea • Financial performance as expected temporally impacted by lower margins in the dry cargo activi
Slide 5: Highlights First Quarter 2024 Financial Highlights
HIGHLIGHTS FIRST QUARTER 2024 EBITDA ROIC (LTM) FINANCIAL HIGHLIGHTS 92 USD million 26 Percent Q1 2023: 208 Q1 2023: 53 • Net profit result of USD 62 million and a ROIC of 26% (LTM) overall in line with expectations USD million percent • Freight Services & Trading: Net profit of USD -27 million due
Slide 6: Market Position: Adding Dry Market Exposure
MARKET POSITION Vessels Dry Cargo Position - Group (by mid April 2024) ADDING DRY MARKET EXPOSURE 70 267 76 42 22 60 11 50 20 10 9 4 5 3 18 13 3 4 • NORDEN continues building deferred dry cargo market exposure, driven by a structurally 40 30 positive outlook on the market and the purchase of six Cap
Slide 7: Strategy Update: Executing on Our Long-Term Targets
Strategic Scorecard STRATEGY UPDATE Target Target EXECUTING ON OUR LONG-TERM TARGETS Value creation Return on Invested Capital (ROIC) Rolling five years Average of min. 12% - avg. Q2 2019 - Q1 2024 23% per year • Overall positive performance across our strategic objectives, confirming our focus on d
Slide 8: Guidance and Final Remarks
GUIDANCE AND FINAL REMARKS 8 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 9: Guidance Full-Year 2024
GUIDANCE FULL-YEAR 2024 • Based on a first quarter result overall in line with expectations and the current market outlook, NORDEN reiterates the full-year guidance of a net profit in the range of USD 150-250 million (FY 2023: USD 400 million) • The full-year guidance for 2024 still includes gains o
Slide 10: Final Remarks: A Quarter in Line with Expectations
FINAL REMARKS A QUARTER IN LINE WITH EXPECTATIONS • Result for Q1 in line with expectations and stable high earnings in Assets & Logistics, however result affected by negative margins in Freight Services & Trading • Expanding market exposure in Dry cargo for 2024 and onwards due to positive forward
Slide 11: 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.norden.com Connect with us 11 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 12: Appendix
APPENDIX Consolidated financial information and fleet data for NORDEN Market development and outlook NORDEN at a glance Our strategy Business units Total shareholder returns and business unit valuation 12 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 13: NORDEN Financials
NORDEN FINANCIALS 13 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 14: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 14 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 15: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 15 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 16: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 16 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 17: Assets & Logistics Fleet Overview
ASSETS & LOGISTICS FLEET OVERVIEW At 31 March 2024 Dry Cargo Vessels in operation Vessels to be delivered Capesize 5 6 Panamax 15 6 Supramax 19 8 Handysize 11 5 Total 50 25 - Of which own vessels Capesize 5 5 Panamax 3 0 Supramax 0 5 Handysize 0 0 Total 8 10 Tankers Vessels in operation Vessels to b
Slide 18: Assets & Logistics Capacity and Coverage
ASSETS & LOGISTICS CAPACITY AND COVERAGE Assets & Logistics – Dry Cargo At 31 March 2024 Assets & Logistics – Tankers At 31 March 2024 2024 2025 2026 2024 2025 2026 Own vessels Vessel days 2024 2025 2026 2024 2025 2026 Capesize Own vessels Vessel days 1,862 2,555 2,555 Panamax MR 1,918 2,555 2,555 8
Slide 19: Business Unit Performance
BUSINESS UNIT PERFORMANCE 19 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 20: Freight Services & Trading: Short-Term Headwinds
FREIGHT SERVICES & TRADING NET PROFIT PER VESSEL DAY SHORT-TERM HEADWINDS USD / Day 5,000 4,583 4,000 • Freight services & Trading reported result for the first quarter of USD -27 million 3,554 3,153 compared to USD 67 million in Q1 2023 3,000 2,054 2,000 1,916 1,858 1,856 1,672 • Result significant
Slide 21: Assets & Logistics: Increasing Asset Values
ASSETS & LOGISTICS INCREASING ASSET VALUES DKK NAV PER SHARE (END Q1) Pay-out of DKK 135 per share in dividends since August 2022 500 446 422 • Assets & Logistics reported a result of USD 89 million in Q1 2024 (USD 83 million), including 381 400 377 372 360 353 347 profit from sale of vessels of USD
Slide 22: Asset & Logistics: Extensive Optionality in Volatile Environment
ASSET & LOGISTICS EXTENSIVE OPTIONALITY IN VOLATILE ENVIRONMENT • NORDEN’s extensive optionality generates potential for attractive upside to the portfolio in an environment characterised by increasing new building prices and short-term lower visibility on freight rates due to the macroeconomic unce
Slide 23: Market Developments and Outlook
MARKET DEVELOPMENTS AND OUTLOOK 23 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 24: Market Developments: Dry and Tanker Market in Q1
MARKET DEVELOPMENTS 5-year secondhand asset values DRY AND TANKER MARKET IN Q1 USD million 70 60 Unexpectedly strong first quarter in dry, particularly in Capesize 50 40 • Strong volume growth with dry cargo volumes growing 4% Y/Y and 5% in tonne miles driven by 30 strong import to China of iron ore
Slide 25: Market Developments: Dry Cargo Market Outlook
MARKET DEVELOPMENTS Global volumes transported (30-day moving average) DRY CARGO MARKET OUTLOOK Million tonnes 14 13.5 13 12.5 12 • Dry cargo market expected to remain firm, supported by good demand growth and low 11.5 fleet growth 11 • Demand growth in coal and grain, while iron ore volumes deceler
Slide 26: Market Developments: Tanker Market Outlook
MARKET DEVELOPMENTS Clean products and crude oil in transit TANKER MARKET OUTLOOK 130% (number of barrels in transit compared to January 2020 in %) 120% 110% • Product tanker market expected to remain attractive but volatile in the short-term 100% • Demand to stay robust combined with limited supply
Slide 27: NORDEN at a Glance
NORDEN AT A GLANCE 27 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 28: NORDEN at a Glance
NORDEN AT A GLANCE 2005: NORDEN establishes Norient 2021: Product Pool with pool-partner Interorient Navigation NORDEN celebrates 150 years of sailing the seven seas 1923: Company Ltd., Cyprus NORDEN’s first motor vessel, NORDBO is delivered 2013: 2023: 1871: 1973: NORDEN finalises its first NORDEN
Slide 29: We Enable Smarter Global Trade
WE ENABLE SMARTER GLOBAL TRADE More than Tonnes of cargo carried Data points processed daily We are 475 130 m 9.4 bn 52 vessels operated in 2023 to support decisions nationalities at NORDEN 29 PRESENTATION OF FIRST QUARTER RESULTS 2024 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 30: NORDEN Strategy
NORDEN STRATEGY Macrotrends affecting shipping NORDEN strategy Geopolitical complexity Customer-focused freight services, logistics and climate solutions Market volatility Asset-light business model Digitalisation High-performing organisation Data, analytics and risk management Decarbonisation 30 PR
Slide 31: Our Business Model
OUR BUSINESS MODEL Founded in 1871 and with 14 offices across 6 continents and close to 500 employees ashore, NORDEN is a global provider of ocean-based freight From shipper Freight Services and Port logistics To customer services for dry and liquid bulk and project cargo of all sizes. We integrate
Slide 32: Business Model: Agile Capacity Management Model
BUSINESS MODEL AGILE CAPACITY MANAGEMENT MODEL Selected customers and partners DRY CARGO TANKERS MULTIPURPOSE HANDYSIZE HANDYSIZE 10,000 - 30,000 DWT 28,000 - 39,000 DWT 36,000 - 40,000 DWT c SUPRAMAX PANAMAX MR 50,000 - 64,000 DWT 75,000 - 93,000 DWT 46,000 - 52,000 DWT CAPESIZE 150,000-210,000 DWT
Slide 33: Shareholder Returns and Valuation
SHAREHOLDER RETURNS AND VALUATION 33 PRESENTATION OF FIRST QUARTER RESULTS 2024
Slide 34: Shareholder Cash Distribution
HIGHLIGHTS FOR FIRST QUARTER 2024 SHAREHOLDER CASH DISTRIBUTION CASH DISTRIBUTED TO SHAREHOLDERS (USD million) incl. announced share buy-backs 800 75% • NORDEN will in connection with the first quarter 2024 results distribute USD 30 700 million to shareholders through an interim dividend of DKK 2 pe
Slide 35: Share Price Performance
SHARE PRICE PERFORMANCE ANNUALISED TOTAL SHAREHOLDER RETURNS OF 39% PER YEAR ~ USD 1.2 billion returned since 2019 (When including interim dividends and share buyback programme) 900 Total shareholder return since Q1 2019 800 (As of 31 March 2024) 700 600 Index = 100 500 400 300 200 100 0 NORDEN Dry
Slide 36: Share Price Valuation
SHARE PRICE VALUATION ASSETS & LOGISTICS FREIGHT SERVICES & TRADING NAV-based valuation Earnings-multiple based valuation Per 31/3/2024 USDm Market value of own vessels 1,237 TOTAL VALUE Market value of T/C & Cover portfolio 367 Expected avg. margin per day (USD) 500 OF NORDEN Net cash position 363
Dampskibsselskabet NORDEN — Q1 2024 Earnings Presentation on 6ix