Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q3 2024 Earnings Presentation
37 slides from Dampskibsselskabet Norden A/s's earnings presentation, 2024
Slide 1: Presentation of Third Quarter Results 2024
PRESENTATION OF THIRD QUARTER RESULTS 2024 Copenhagen, Denmark, 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 Third Quarter 2024
KEY STATEMENTS AND HIGHLIGHTS THIRD QUARTER 2024 3 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 4: Highlights Third Quarter 2024: Business Highlights
HIGHLIGHTS THIRD QUARTER 2024 BUSINESS HIGHLIGHTS • Market conditions weaker than expected in both dry and tankers. • Results in Freight Services & Trading dry cargo activities are improving as expected, but the improvement was offset by weaker tanker spot rates. • Active asset management to reduce
Slide 5: Highlights Third Quarter 2024: Financial Highlights
HIGHLIGHTS THIRD QUARTER 2024 Profit for the EBIT FINANCIAL HIGHLIGHTS period 25 USD million 32 USD million YTD 2024: USD 133 million YTD 2024: USD 159 million • Net profit of USD 25 million and a ROIC of 15% (LTM). • Freight Services & Trading: Net profit of USD -18 million, due to a significant de
Slide 6: Diverse Business Model Enables Long-Term Superior Returns
DIVERSE BUSINESS MODEL ENABLES LONG-TERM SUPERIOR RETURNS Current market conditions with high asset prices and TC period rates supports Assets & Logistics, but the low spot rates erode margins in Freight Services & Trading. The diversity of our business model, with both owner and operator activities
Slide 7: Market Position: Active Asset Management
MARKET POSITION Dry Cargo Position - Group ACTIVE ASSET MANAGEMENT Vessels (by end October 2024) 335 102 56 80 • Long-term outlook for dry cargo market remains positive based on a historically low 60 17 4 orderbook, higher demolition due to an ageing fleet and limited yard capacity. 48 14 13 12 6 5
Slide 8: 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. Q4 2019 – Q3 2024 23% per year • Delivering on long-term strategic objectives, confirming our focus on delivering long-t
Slide 9: Guidance and Final Remarks
GUIDANCE AND FINAL REMARKS 9 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 10: Guidance Full-Year 2024
GUIDANCE FULL-YEAR 2024 • Based on a third quarter with lower margins due to weaker tanker spot rates, NORDEN narrows the full-year net profit guidance to the range of USD 160-210 million (previously: USD 160-240 million). • The full-year guidance for 2024 includes gains on sale of vessels from alre
Slide 11: Final Remarks: Continued Focus on Realising Strong Portfolio Values
FINAL REMARKS CONTINUED FOCUS ON REALISING STRONG PORTFOLIO VALUES • Strongly positioned towards a fundamentally positive asset market due to limited yard capacity and an ageing fleet, through investments made in own vessels and large portfolio of leased vessels with purchase options. • Estimated Ne
Slide 12: 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 12 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 13: 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 13 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 14: NORDEN Financials
NORDEN FINANCIALS 14 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 15: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 15 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 16: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 16 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 17: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 17 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 18: Assets & Logistics Fleet Overview
ASSETS & LOGISTICS FLEET OVERVIEW At 30 September 2024 Dry Cargo Vessels in operation Vessels to be delivered Capesize 8 4 Panamax 15 5 Supramax 18 9 Handysize 13 4 Total 54 22 - Of which own vessels Capesize 8 4 Panamax 2 0 Supramax 0 5 Handysize 0 0 Total 10 9 Tankers Vessels in operation Vessels
Slide 19: Assets & Logistics Capacity and Coverage
ASSETS & LOGISTICS CAPACITY AND COVERAGE Assets & Logistics – Dry Cargo Assets & Logistics – Tankers At 30 September 2024 At 30 September 2024 2024 2025 2026 2024 2025 2026 2024 2025 2026 2024 2025 2026 Own vessels Vessel days Own vessels Vessel days Capesize 671 2,555 2,555 MR 644 2,555 2,555 Panam
Slide 20: Business Unit Performance
BUSINESS UNIT PERFORMANCE 20 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 21: 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 3,554 3,153 3,000 2,054 1,916 1,858 1,856 2,000 1,672 1,364 1,000 709 776 840 738 • Freight services & Trading reported a result for the third quarter of USD -18 million 242 Average 23 48 1,147 0 co
Slide 22: Assets & Logistics: Increasing Asset Values
ASSETS & LOGISTICS INCREASING ASSET VALUES Estimated NAV, DKK per share 500 446 451 422 433 400 381 372 347 360 353 300 • Assets & Logistics reported a result of USD 43 million in Q3 2024 (USD 69 million), including 200 sublease gains of USD 14 million. 100 0 • Continued stable earnings generated by
Slide 23: Assets & Logistics: Extensive Optionality in Volatile Environment
ASSET & LOGISTICS EXTENSIVE OPTIONALITY IN VOLATILE ENVIRONMENT • NORDEN’s extensive optionality provides potential for attractive upside to the portfolio in a market characterised by increasing newbuilding prices and short-term lower visibility on freight rates due to the macroeconomic uncertaintie
Slide 24: Market Developments and Outlook
MARKET DEVELOPMENTS AND OUTLOOK 24 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 25: Market Developments: Dry and Tanker Market in Q3
MARKET DEVELOPMENTS 5-year secondhand asset values DRY AND TANKER MARKET IN Q3 USD million 70 60 50 The dry cargo market was weaker than expected in Q3 40 • Global tonne miles up 3.4% and volumes up 2.1% in Q3 30 20 • Distances adding 1% - fronthaul voyages. 10 • Spot rates flat for smaller vessel s
Slide 26: Market Developments: Dry Cargo Market Outlook
MARKET DEVELOPMENTS Global Tonnes transported (30-day moving average) DRY CARGO MARKET OUTLOOK Million tonnes 14.5 14.0 13.5 13.0 12.5 • Spot rates are expected to remain soft driven by lower bauxite volumes. 12.0 • Continuing positive demand growth in coal to China. Near-term risk to demand growth
Slide 27: Market Developments: Tanker Market Outlook
MARKET DEVELOPMENTS Clean products and crude oil in transit (number of barrels in transit compared to January 2020 in %) TANKER MARKET OUTLOOK 125% 115% 105% 95% • Product tanker market expected to rebound and stay attractive but volatile in the near- 85% term future, driven by low fleet growth and
Slide 28: NORDEN at a Glance
NORDEN AT A GLANCE 28 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 29: NORDEN at a Glance
NORDEN AT A GLANCE 2005: NORDEN establishes Norient 2021: Product Pool with pool-partner NORDEN celebrates 150 Interorient Navigation years of sailing the seven seas 1923: Company Ltd., Cyprus NORDEN’s first motor vessel, NORDBO is delivered 2023: 1973: 2013: 1871: NORDEN finalises its first NORDEN
Slide 30: We Enable Smarter Global Trade
WE ENABLE SMARTER GLOBAL TRADE Close to Tonnes of cargo carried Data points processed daily We are 500 135 m 9.4 bn 52 vessels operated Last twelve months to support decisions nationalities at NORDEN 30 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 31: 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 31 PR
Slide 32: 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 33: 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 34: Shareholder Returns and Valuation
SHAREHOLDER RETURNS AND VALUATION 34 PRESENTATION OF THIRD QUARTER RESULTS 2024
Slide 35: Shareholder Cash Distribution
HIGHLIGHTS FOR THIRD QUARTER 2024 SHAREHOLDER CASH DISTRIBUTION CASH DISTRIBUTED TO SHAREHOLDERS (USD million) incl. announced share buy-backs 800 75% 700 • NORDEN will in connection with the third quarter 2024 results distribute USD 21 million to shareholders through an interim dividend of DKK 2 pe
Slide 36: Share Price Performance: Annualised Total Shareholder Returns of 38% Per Year
SHARE PRICE PERFORMANCE ANNUALISED TOTAL SHAREHOLDER RETURNS OF 38% PER YEAR ~ USD 1.2 billion returned since 2019 (When including interim dividends and share buyback programme) Total shareholder return since Q3 2019 (As of 30 September 2024) 900 800 700 600 500 Index = 100 400 300 200 100 0 Sep-19
Slide 37: Share Price Valuation
SHARE PRICE VALUATION ASSETS & LOGISTICS FREIGHT SERVICES & TRADING NAV-based valuation Earnings-multiple based valuation Per 30/9/2024 USDm Market value of own vessels 1,416 TOTAL VALUE Market value of T/C & Cover portfolio 629 Expected avg. margin per day (USD) 500 OF NORDEN Net cash position 91 A
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