Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — Q3 2013 Earnings Presentation
23 slides from Dampskibsselskabet Norden A/s's earnings presentation, Nov 13, 2013
Slide 1: NORDEN Results 3rd quarter of 2013
NORDEN RESULTS 3rd quarter of 2013 Hellerup, p, Denmark 13 November 2013 NORDEN 3rd quarter of 2013 results | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA f Group highlights f Financial highlights f Market update f Full year financial guidance f Q&A NORDEN 3rd quarter of 2013 results | 2 Our business is global tramp shipping
Slide 3: Q3 Highlights
Q3 HIGHLIGHTS EBITDA (USDm) Key messages 44 f EBITDA of USD 19 mill. f Continued investment focus in 23 expectation of improved 19 markets in the coming gyyears 10 4 f Vessel values up by 5% in the quarter Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 f Spike in dry cargo market Added value excl. joint ve
Slide 4: Q3 Financials
Q3 FINANCIALS Comments USDm Q3 2012 Q2 2013 Q3 2013 Y/Y % Q/Q % CM II Group 34 16 31 -10% 93% f Tanker earnings significantly f better than O/A Group G 2 -12 -12 2 -12 2 7% 2% last year - T/C earnings EBITDA Group 23 4 19 -18% 375% 8% above the average EBITDA 26 -2 2 10 -62% 62% N.A. 1 1-year T/C ra
Slide 5: Positioning for an improved market
POSITIONING FOR AN IMPROVED MARKET f Lower coverage to take advantage of market upturn f Increased Panamax capacity at lower costs Coverage Panamax T/C-in 2015 100% 90% 15.331 80% 70% 12.881 60% 50% 9.234 40% 30% 20% 5.269 10% 0% T/C capacity (ship days) T/C cost (USD per day) 2014 2015 End Q2 End Q
Slide 6: Dry Cargo Market
DRY CARGO MARKET f Improving market in Q3 Baltic Dry Index 2.500 f Baltic Dry Index up 52.8% Y/Y in Q3 2.000 1.500 f China’s dry cargo imports up 1.000 23 2% Y/Y in Q3 23.2% 500 f Record Chinese iron ore import - in July and September Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 2013 f Recor
Slide 7: Dry Cargo Market
DRY CARGO MARKET f Decreasing fleet growth as expected f Continued moderate orderbook despite increased ordering activity Dry Cargo fleet development (millions dwt.) dwt ) 120 15% 100 80 10% 60 40 5% 20 - 0% -20 -40 -5% 2011 2012 2013e 2014e Realised additions Expected addtions Realised removals Exp
Slide 8: Tanker Market
TANKER MARKET f Best third quarter in recent US product export (mb/d) years 4 f Record high US product oil 3 export 2 f Rising Russian fuel oil export 1 f Low activity east of Suez 0 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 20.000 20.000
Slide 9: Tanker Market
TANKER MARKET f Low net fleet growth f Decreasing scrapping ofset by lower deliveries f High level of new contracting Total product fleet development (millions dwt.) 8 6,0% 6 4 5% 4,5% 4 3,0% 2 1,5% 0 0,0% -2 -1,5% 2011 2012 2013e 2014e Realised additions Expected addtions Realised removals Expected
Slide 10: 2013 Full Year Guidance
2013 FULL YEAR GUIDANCE Outlook Key assumptions USDm Dry Cargo Tanker Total f Guidance based on current EBITDA 0-10 25-45 25-45 capacity and coverage Profit from 3 f Only known and confirmed vessel sales vessell sales l are iincluded l d d iin CAPEX 110-120 guidance NORDEN 3rd quarter of 2013 result
Slide 11: 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 2013 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 12: Thank you for your attention
THANK YOU OU FOR O YOUR OU ATTENTION O 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 www.ds-norden.com NORDEN 3rd quarter of 2013 results | 12
Slide 13: Back Up
BACK UP FORWARD LOOKING STATEMENTS NORDEN 3rd quarter of 2013 results | 13 Our business is global tramp shipping
Slide 14: A Leading Global Tramp Operator
A LEADING GLOBAL TRAMP OPERATOR Dry cargo Capesize Post-Panamax Panamax Handymax Handysize Total active fleet 236 44 Dry Cargo Tanker Tanker MR Handysize f One of the most modern fleets in our industry f Global network of offices and port captains f Pools in Dry Cargo (Handysize, Post Panamax) and T
Slide 15: Asset Light Business Model
ASSET LIGHT BUSINESS MODEL f Active fleet can quickly be adjusted to demand and market conditions f Fleet employment based on portfolio view f Significant asset upside through purchase options Flexible fleet Coverage and customer focus Capacity Employment f Sale and purchase f Customer relations Con
Slide 16: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 16,7 47,0% 5,2 5,8 2,1 12,4% 12,9% 4 4% 4,4% -6,8 -15,1% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Cash flows, operations and investments Dividend yield 7 1% 7,1% Excel. share buy back of 2% 541 7 298 160 120 122 -57 -80 4,0%
Slide 17: Financial Strength = Future Growth
FINANCIAL STRENGTH = FUTURE GROWTH Strong capital structure Net committed cash f Strong focus on cash flow USDm Q3 2013 Q2 2013 generation Adjusted Net Interest Bearing 237 278 Assets* f Cash in low-risk deposit T/C obligations** -1,749 -1,665 accounts and securities Newbuilding installments less -2
Slide 18: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW NORDEN 3rd quarter of 2013 results | 18 Our business is global tramp shipping
Slide 19: Tanker Fleet Overview
TANKER FLEET OVERVIEW NORDEN 3rd quarter of 2013 results | 19 Our business is global tramp shipping
Slide 20: Fleet Values and NAV
FLEET VALUES AND NAV NORDEN 3rd quarter of 2013 results | 20 Our business is global tramp shipping
Slide 21: Coverage and Capacity – Dry Cargo
COVERAGE AND CAPACITY – DRY CARGO NORDEN 3rd quarter of 2013 results | 21 Our business is global tramp shipping
Slide 22: Coverage and Capacity – Tanker
COVERAGE AND CAPACITY – TANKER NORDEN 3rd quarter of 2013 results | 22 Our business is global tramp shipping
Slide 23: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders end 2012 f 16,297 registered shareholders Shareholder capital DKK 43 43,000,000 000 000 owning 91.4% Number of shares and 43,000,000 shares of f Approx. 40% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership r