Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — H1 2010 Earnings Presentation
14 slides from Dampskibsselskabet Norden A/s's earnings presentation, Aug 17, 2010
Slide 1: NORDEN 1st Half Results 2010
NORDEN 1st HALF RESULTS 2010 THE PREFERRED PARTNER IN GLOBAL TRAMP SHIPPING. UNIQUE PEOPLE. OPEN MINDED TEAM Copenhagen, 17 August 2010 SPIRIT. NUMBER ONE. Dampskibsselskabet NORDEN A/S | 52 Strandvejen | DK-2900 Hellerup | www.ds-norden.com 1
Slide 2: Today's Agenda
TODAY’S AGENDA H1 2010 y Group highlights y Financial highlights y Major j transactions y Business review and market outlook y Dry Cargo y Tanker y Full-year Full year expectations y Q & A Session 2
Slide 3: H1 2010 Highlights
H1 2010 HIGHLIGHTS Group financials Key messages USD USDm EBITDA • Groupp EBITDA increased byy more than 25% compared to last quarter • NORDEN was well protected against spot rate decline during Q2 in Dry Cargo • Product tanker spot rates remained steady, but on a low level • Theoretical NAV improve
Slide 4: H1 2010 Key Financials
H1 2010 KEY FINANCIALS Continued EBITDA improvement Gearing reduced further y Dry y Cargo g EBITDA increased for y Strong cash position – USDm 623 the sixth quarter in a row in net interest bearing assets y Earnings positively affected by y Almost 60% of T/C obligations booking g T/C cancellation no
Slide 5: Major Transactions
MAJOR TRANSACTIONS Dry Cargo Tanker y Concluded several COAs with y 2 Handysize y tanker vessels industrial clients ~ 2,500 vessel bought in April delivered to days in total + 3,000 after the NORDEN during July quarter y 5 x 2-year y T/C to Shell y Cancellation of T/C on 1 Capesize y Took delivery o
Slide 6: Dry Cargo – Spot Market Development
DRY CARGO – SPOT MARKET DEVELOPMENT y Strong coal and grain season lead to solid rates in Panamax and Handymax y Downturn hit Capesizes hard y The smaller segments continue to perform well T/C Earnings (USD per day) 70.000 60.000 50.000 40.000 30.000 20.000 10.000 - jan feb mar apr maj jun jul aug C
Slide 7: Dry Cargo Market
DRY CARGO MARKET y Chinese commodity import momentum seems to be slowing y Q2 iron ore import down 7% Y/Y - coal imports down 18% from previous quarter y Increasing congestion especially in Australian coal ports Chinese Iron Ore Chinese Coal Imports Imports (m tons) 18 (m tons) 70 16 60 14 12 50 10
Slide 8: Dry Cargo Market
DRY CARGO MARKET y Despite significant shortfalls, actual deliveries continue at high pace y 36 mill. dwt delivered in H1 – same expected in H2 y Net fleet growth in small segments much smaller, supporting rates Mill dwt D B Dry Bulk lk Deliveries D li i Pct 35 50% 45% 30 40% 25 35% 30% 20 25% 15 20
Slide 9: Tanker Market
TANKER MARKET y Oil demand forecast are driven by Non OECD, mainly China y Refinery economics is getting better and output is boosted 90 World W ld Oil Demand D d 89 (mb/d) 88,1 88,0 88 87,6 87,7 87 86 6 86,5 86,8 86,6 86 8 86,0 86 85,6 85,1 85 84,3 83,9 84 83 82 81 80 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 10: Tanker Market
TANKER MARKET y The peak of fleet growth is behind us in NORDEN’s main segments y Approximately 10% of the Handysize and MR fleets are single hull Fleet growth (Pct) 9 8 7 6 5 4 3 2 1 0 -1 -2 2007 2008 2009 2010 2011 2012 2013 10-70k dwt fleet Total 10+k dwt fleet Source: MSI Q3 2010, Clarksons 10
Slide 11: Revised 2010 Full Year Guidance
REVISED 2010 FULL YEAR GUIDANCE Revised guidance Key assumptions USDm Dry Cargo Tanker Total y Guidance based on current capacity and coverage EBITDA 255-275 -5-5 240-270 y No significant new counterparty issues Profit from 29 + 5 y Only known vessel sales and vessel sales in JV purchases are includ
Slide 12: 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 the remainder of 2010 and subsequent years are subject to uncertainty, and NORDEN’s actual results may
Slide 13: Q&A
Q&A Carsten Mortensen, CEO Dampskibsselskabet NORDEN A/S Michael Tønnes Jørgensen, CFO 52 Strandvejen DK-2900 Hellerup Denmark T: +45 3315 0451 F: +45 3315 6199 Martin Badsted, SVP www.ds-norden.com 13
Slide 14: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Q&A Session 14
Dampskibsselskabet NORDEN — H1 2010 Earnings Presentation on 6ix