Slide 1: Interim results for the three months ended 31 March 2021
INTERIM RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2021 TORM
Slide 2: CEO quote on Q1 2021 EBITDA and vessel purchases
“In the first quarter of 2021, TORM achieved an EBITDA of USD 19m, in a market which continues to be impacted by the pandemic. Further I am pleased that we have just purchased three LR2 vessels on top of the eight MR vessels acquired earlier this year” says Executive Director Jacob Meldgaard.
Slide 3: Highlights: vessel transactions
HIGHLIGHTS VESSEL TRANSACTIONS. During the first quarter of 2021, TORM entered into an agreement to purchase eight 2007-2012 built MR product tanker vessels from Team Tankers Deep Sea Ltd. for a total cash consideration of USD 82.5m and the issuance of 5.97 million shares. The vessels were all built
Slide 4: Highlights: liquidity, vessel values, NAV, coverage
HIGHLIGHTS LIQUIDITY VESSEL VALUES NET ASSET VALUE SCRUBBER UPDATE COVERAGE As of 31 March 2021, TORM's available liquidity was USD 329.4m consisting of USD 116.5m in cash and cash equivalents, USD 136.9m in undrawn, credit facilities and USD 76.0m of sale and leaseback financing related to TORM's t
Slide 5: Safe harbor statements as to the future
SAFE HARBOR STATEMENTS AS TO THE FUTURE ssed in this ng statements. Forward-looking ase may constitute forward-| nents reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or perfor
Slide 6: Key figures
KEY FIGURES USDm Q1.2021 Q1 2020 FY 2020 Q12021_Q12020 FY 2020 INCOME STATEMENT KEY FINANCIAL FIGURES * Revenue 124.1 242.6 747.4 Gross margins: Time charter equivalent earnings (TCE) ® 767 1582 5195 EBITDA 15.2% 418% 36.4% Gross profit ® 324 115.1 341.1 Operating profit/(loss) 9.3% 28.9% 18.6% EBIT
Slide 7: The product tanker market
THE PRODUCT TANKER MARKET The weak conditions in the product tanker market continued from the end of 2020 into the start of 2021. Global oil demand recovery was negatively affected by increasing COVID-19 cases in many regions of the world and the OPEC+ quota regime continued to suppress the tanker m
Slide 8: Covered and chartered-in days in TORM
COVERED AND CHARTERED-IN DAYS IN TORM ~ DATA AS OF 31 MARCH 2021 2021 2022 2023 2021 2022 2023 Owned days Covered, % LR2 2,605 3,630 LR2 74% URL 2,430 3,093 URL 34% MR 13,250 18,316 MR 26% Handysize 547 725 Handysize 5% Total 18,832 25,764 25,621 Total 32% Chartered-in and leaseback days at fixed ra
Slide 9: Earnings data
EARNINGS DATA Change Q120- 12-month UsDm Q12020 _Q22020 Q32020 Q42020 Qi2021_— qu 2a avg. LR2 vessels Available earning days 1,019 1,002 901 873 847 -17% Spot rates ® 31013 37.677, «21,495 18,510 10,221 “67% 25,233 TCE per earning day ? 32,732___ 23,854 -19,632___—16,455 “43% 23,562 erating days 1,0
Slide 10: TORM fleet development
TORM FLEET DEVELOPMENT TORM FLEET DEVELOPMENT The table shows TORM's operating fleet. In addition to 65 owned product tankers on the water, TORM had eight vessels under sale and leaseback arrangements as of 31 March 2021. As of 31 March 2021, TORM had two LR2 newbuildings on order with one vessel ex
Slide 11: Financial review
FINANCIAL REVIEW INCOME STATEMENT The gross profit for the three months ended 31 March 2021 was USD 32.4m (2020, same period: USD 115.1m) The decrease compared to the same period in 2020 was due to lower freight rates and fewer available earning days. The average TCE rate for the three months ended
Slide 12: Financial review: liquidity and cash flow
FINANCIAL REVIEW LIQUIDITY As of 31 March 2021, TORM's available liquidity was USD 329.4m consisting of USD 116.5m in cash and cash equivalents, USD 136.9m in undrawn credit facilities and USD 76.0m sale and leaseback financing related to TORM'’s two LR2 newbuildings. Cash and cash equivalents inclu
Slide 13: Responsibility statement
RESPONSIBILITY STATEMENT We confirm that to the best of our knowledge: * The condensed consolidated set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU and as issued by the International Accounting Standards Board ("IASB") « The in
Slide 14: Condensed consolidated income statement
CONDENSED CONSOLIDATED INCOME STATEMENT usbm Note Qi 2021 Q1 2020 FY 2020 Revenue 124.1 242.6 7344 Port expenses, bunkers and commissions “47.4 “84.4 “2149 Operating expenses 1 44.3 -43.1 -178.4 Profit from sale of vessels : : aa. Administrative expenses 1,2 “13.6 “13.8 “50.8 Other operating income
Slide 15: Condensed consolidated statement of comprehensive income
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME UsDm. Qi 2021 Qi 2020 FY 2020 Net profit/(loss) for the year 221.3 56.4 88.1 Other comprehensive income/(loss): Items that may be reclassified to profit or loss: Exchange rate adjustment arising from translation of entities using a functional
Slide 16: Condensed consolidated balance sheet
CONDENSED CONSOLIDATED BALANCE SHEET 31March 31March 31 December 31March © 31March 31December = UsDm Note 20212020 2020 usbm Note 2021 2020 2020. EQUITY AND LIABILITIES ASSETS EQUITY NON-CURRENT ASSETS Common shares 07 07 07 Tangible fixed assets Share premium 1028 1014 102.0 Land and buildings 59 8
Slide 17: Condensed consolidated statement of changes in equity
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 1 JANUARY- 31 MARCH Common Share Treasury Hedging Translation Retained UsDm shares premium shares reserves reserves profit Total Equity as of 1 January 2021 o7 102.0 “4.2 -20.7 0.4 939.3 1,017.5 Comprehensive income/loss for the period Net profit
Slide 18: Condensed consolidated cashflow statement
CONDENSED CONSOLIDATED CASHFLOW STATEMENT usbm Q1.2021 Q1 2020 FY2020. © USDm Q1.2021 Q12020 FY 2020 CASH FLOW FROM OPERATING ACTIVITIES CASH FLOW FROM INVESTING ACTIVITIES Net profit/<loss) for the year 213564 88.1 _ Investment in tangible fixed assets “410-686 © -173.1 7 ale of tangible fixed asse
Slide 19: Notes
NOTES NOTE 1- STAFF COSTS. UsDm Q12021 _Q12020 FY 2020 Included in operating expenses 24 19 9.2 Included in administrative expenses uz 045 Total staff costs 13.7129 50.7 NOTE 2 - VESSELS AND CAPITALIZED DRY-DOCKING Included in the carrying amount for "Vessels and capitalized dry-docking” are capital
Slide 20: Note - Prepayments on vessels; mortgage debt and bank loans
NOTE 3 - PREPAYMENTS ON VESSELS NOTE 4 - MORTGAGE DEBT AND BANK LOANS 31 March 31March 31 December 31 March 31March 31 December usDm 2021 2020 2020 usDm 2021 2020 2020 Balance as of beginning of period 12.0 95.0 95. Mortgage debt and bank loans to be repaid as Additions 14.4 36.3 follows: Transferre
Slide 21: Note - Provisions
NOTE 5 - PROVISIONS In 2020 the Group was involved in two cargo claims, both relating to one customer having issued indemnities to TORM for safe discharge of cargoes, and not being able to honor those indemnity obligations. Both cases involved irregular activities by the customer in relation to the
Slide 22: Note - Accounting policies
NOTE 10 - ACCOUNTING POLICIES General information The information for the year ended 31 December 2020 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The audit
Slide 23: Condensed consolidated income statement per quarter
CONDENSED CONSOLIDATED INCOME STATEMENT PER QUARTER usbm Qi 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Revenue 124.1 116.3 160.7 227.8 242.6 Port expenses, bunkers and commissions “47.4 -393 -50.8 -53.4 -84.4 Operating expenses -44.3 -45.0 “47.1 43.2 “43.1 Profit from sale of vessels : oO. 08 02 Administr
Slide 24: Condensed consolidated statement of cash flow per quarter
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW PER QUARTER usbm Qi 2021 4 2020 Q3 2020 Q2 2020 Qi 2020 CASH FLOW FROM OPERATING ACTIVITIES Net profit/(loss) for the year BLS -40.0 0.6 711 56.4 Reversals: Profit from sale of vessels - -0.1 -0.8 -0.2 : Depreciation 30.5 30.4 29.5 30.6 314 impairment lo
Slide 25: Condensed consolidated statement of cash flow per quarter
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW PER QUARTER UsDm Q12021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 CASH FLOW FROM INVESTING ACTIVITIES investment in tangible fixed assets -41.0 -378 -18.9 -47.8 ~68.6 Sale of tangible fixed assets - 18.4 46.3 98 9.2 ‘ange in restricted cash 91 “17.2 8.6 0.8 37 Net
Slide 26: Glossary: key financial figures
GLOSSARY KEY FINANCIAL FIGURES TCE % = TCE Revenue TCE per day = TCE Available earning days Gross profit % = Gross profit Revenue EBITDA % = EBITDA Revenue Operating profit/(loss) % = Operating profit/(loss) (EBIT) Revenue Return on Equity (RoE) % Net profit/(loss) for the year Average equity Return
Slide 27: Glossary: alternative performance measures
GLOSSARY ALTERNATIVE PERFORMANCE MEASURES Throughout the interim report, several alternative performance measures (APMs) are used, The PMs used are the same as in the Annual Report and therefore we refer to the principles for these on pages 166-170 in the TORM ple Annual Report 2020. See www torm,co
Slide 28: Glossary: alternative performance measures continued
GLOSSARY ALTERNATIVE PERFORMANCE MEASURES - continued EBITDA: TORM defines EBITDA as earnings before financial income and expenses, depreciation, impairment, amortization and taxes. The computation of EBITDA refers to financial income and expenses which the Company deems to be equivalent to “interes
Slide 29: Glossary: Adjusted RoIC
GLOSSARY ALTERNATIVE PERFORMANCE MEASURES - continued Adjusted Return on Invested Capital (Adjusted RoIC): TORM defines Adjusted RolC as earnings before interest and tax (EBIT) less tax and impairment losses and reversals, divided by the average invested capital less average impairment for the perio
Slide 30: Glossary: net interest-bearing debt
GLOSSARY ALTERNATIVE PERFORMANCE MEASURES - continued Net interest-bearing debt: Net interest-bearing debt is defined as mortgage debt and bank loans (current and non-current), lease liabilities and amortized bank fees less cash, cash equivalents and interest-bearing loan receivables. Net interest-b
Slide 31: Glossary: liquidity and net loan-to-value
GLOSSARY ALTERNATIVE PERFORMANCE MEASURES Liquidity: TORM defines liquidity as available cash, comprising cash and cash equivalents, including restricted cash, as well as undrawn and committed credit facilities, TORM finds the APM important as the liquidity expresses TORM's financial position, abili