Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — H1 2012 Earnings Presentation
22 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 15, 2012
Slide 1: NORDEN Results First half-year of 2012
NORDEN RESULTS First half-year of 2012 Hellerup, Denmark 15 August 2012 NORDEN 1st half-year of 2012 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA Group highlights Financial highlights Strategy update Market update Full year financial guidance Q & A NORDEN 1st half-year of 2012 results | 2 Our business is global tramp shipping
Slide 3: Q2 Highlights
Q2 HIGHLIGHTS EBITDA (USDm) Key messages 62 Group EBITDA in line with 50 expectations in Q2 40 36 31 EBITDA was 22% lower than Q2 2011 Continued strong cash position and financial flexibility Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Two ECO GSI vessels ordered Cash and securities (USDm) after
Slide 4: Q2 Financials
Q2 FINANCIALS Comments USDm Q2 2011 Q1 2012 Q2 2012 Y/Y % Q/Q % CM II Group 54 63 43 -20% -32% Dry Cargo performance as expected O/A Group -14 -13 -12 -16% -10% EBITDA 40 50 31 -22% -37% Tanker earnings impacted Group by low spot markets EBITDA Dry Cargo 32 40 30 -5% -25% Tight cost control sh
Slide 5: Fleet Values
FLEET VALUES Theoretical NAV of USD 1.6 bn. - DKK 228 per share NAV decreased by 4% due to declining value of the fleet and charter parties with purchase and extension options Value development (DKK per share) Total theoretical NAV (USDm) 275 258 151 1,595 246 237 243 228 548 -154 23 1,137 784 Q
Slide 6: Strategy Update
STRATEGY UPDATE Realised cargo volumes increased by 32% in the strategy period 7% growth in long-term cargo contracts Operator profit on track The Tanker Department close to goal of 25 owned vessels O/A cost reduced by 9% y/y in H1 2012 Accumulated realised cargo volumes (Mnt) 180 160 140
Slide 7: Dry Cargo Market
DRY CARGO MARKET China coal imports (MnT) Demand remains strong 70 China bulk import up 18% y/y in 60 H1 50 40 Low freight and fob coal prices 30 undercut Chinese coal producers 20 10 Historically weak US grain 0 harvest expected Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012
Slide 8: Tanker Market
TANKER MARKET US gasoline demand increased US gasoline demand (kb/d) on average by 1.5% in April and 9,200 May 8,800 Sharp inventories draw driven 8,400 by improving demand and export 8,000 Export to Latin America continue to trend higher over the coming Gasoline - 2011 Gasoline - 2012 years S
Slide 9: 2012 Full Year Guidance
2012 FULL YEAR GUIDANCE Outlook Key assumptions USDm Dry Cargo Tanker Total Guidance based on current EBITDA 85-125 25-45 110-150 capacity and coverage Profit from - Only known and confirmed vessel sales vessel sales are included in EBIT before 20-60 impairment guidance CAPEX 80-100 Open capac
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 1st half-year of 2012 results | 11 Our business is global tramp
Slide 12: Back Up
BACK UP FORWARD LOOKING STATEMENTS NORDEN 1st half-year 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 189 45 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 Q2 2012 Q1 2012 generation Adjusted Net Interest Bearing Assets* 227 270 Cash in low-risk deposit T/C obligations** -1,693 -1,735 accounts and securities New building installments less p
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 June 2012 Owned vessels 3 4 5 4 14 30 Chartered vessels with POP 1 4 12 19 7 43 Total active core fleet 4 8 17 23 21 73 Chartered vessels without POP 0 0 52 50 14 116 Total ac
Slide 18: Tanker Fleet Overview
TANKER FLEET OVERVIEW Vessel type LR1 MR Handysize Total Vessel in operation as of 30 of June 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 8 9 19 Total active fleet 2 23 20 45 Vessels to be delivered: New buildings
Slide 19: Fleet Values and NAV
FLEET VALUES AND NAV Fleet values in USD mill (before tax) at 30 June 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 cost
Slide 20: Coverage and Capacity – Dry Cargo
COVERAGE AND CAPACITY – DRY CARGO Capacity and coverage, Dry Cargo, at 30 June 2012 2012 2013 2014 2012 2013 2014 Gross capacity: Ship days Costs for gross capacity (USD per day) Capesize 736 1,460 1,460 8,974 8,974 8,974 Post-Panamax 1,472 2,920 2,920 11,841 11,841 11,841 Panamax 5,533 6,212 6,548
Slide 21: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER Capacity and coverage, Tanker, at 30 June 2012 2012 2013 2014 2012 2013 2014 Gross capacity: Ship days Costs for gross capacity (USD per day) LR1 228 0 0 11,900 0 0 MR 4,377 8,614 7,523 12,643 11,764 11,261 Handysize 3,239 4,668 4,015 8,827 7,577 6,842 Total 7,844 13,2
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