Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Norden — FY2013 Earnings Presentation
32 slides from Dampskibsselskabet Norden A/s's earnings presentation, Mar 11, 2014
Slide 1: NORDEN Full year results 2013
NORDEN RESULTS Full year results 2013 Hellerup, Denmark 11 March 2014 NORDEN Full year results 2013 | 1 Our business is global tramp shipping
Slide 2: Agenda
AGENDA Group highlights Financial Strategy Positioning Dry Cargo Tankers 2014 expectations Q & A NORDEN Full year results 2013 | 2 Our business is global tramp shipping
Slide 3: Full Year Highlights
FULL YEAR HIGHLIGHTS EBITDA (USDm) Key messages Overall challenging year 240 Dry Cargo: Historically low H1, 186 surprisingly strong H2 148 126 Attractive coverage expired Many things going well 24 Best Tanker result since 2008 Strong gains in asset values 2009 2010 2011 2012 2013 Orde
Slide 4: Disappointing Dry Cargo Result in Q4
DISAPPOINTING DRY CARGO RESULT IN Q4 EBITDA (USDm) Group EBITDA of USD 24m 60 50 slightly below expectations due 40 to challenging Q4 in Dry Cargo 30 Attractive coverage expired 20 Higher tonnage costs in specific 10 regions 0 Tankers in high end of -10 expectation range Q1 2012 Q2 2012 Q3 2
Slide 5: Strong Improvement in Asset Values
STRONG IMPROVEMENT IN ASSET VALUES Asset values have increased significantly in 2013 – especially in H2 The market value of NORDENs fleet now exceeds the book value by USD 92m – an improvement of USD 228m in 2013 Market value of NORDEN fleet (indexed)* Added value in fleet (USDm) 120 150 115 100
Slide 6: 2011-13 Strategy: Successful Implementation
2011-13 STRATEGY SUCCESSFUL IMPLEMENTATION Strategy 2011-13: Key ambitions achieved Total shareholder return 2011-13 (Index) Growth in cargoes carried of 20% p.a. 180 Growth in contractually secured cargo 160 volumes – abandonned target due to lack of profitability 140 Value creation as operat
Slide 7: New Strategy: Capture Value in Improving Markets
NEW STRATEGY: ”CAPTURE VALUE IN IMPROVING MARKETS” Improved market outlook leading to changes in strategy and tactics No change in overall business model Long-term growth in Capture value in challenging times improving markets Protect downside – create Near-term value – long-term upside comp
Slide 8: NORDEN Is Positioned for Improving Markets
NORDEN IS POSITIONED FOR IMPROVING MARKETS NORDEN enters 2014 with 28,000 open vessel days The order book now stands at 37 vessels with a total value of more than USD 1bn 18.5 new orders during 2013 7.5 new orders in early 2014 All new commitments have increased in value and can not be rep
Slide 9: Dry Cargo: 2013 Market – A Year in Halves
DRY CARGO 2013 MARKET – A YEAR IN 2 HALVES Volatile market rates BDI development H1 2013: lowest half-year in 27 years 2,500 2,000 H2 2013: surprisingly strong but volatile – signs of improving markets 1,500 1,000 Strong dry cargo demand 500 New iron ore capacity expansions - Chinese rec
Slide 10: Dry Cargo: Strong Demand Outlook
DRY CARGO STRONG DEMAND OUTLOOK 2014 tonnage demand growth Iron ore capacity expansions outlook of 7-9% 180 160 Iron ore 140 120 Million tonnes New export capacity coming on 100 stream 80 60 40 Continued Chinese import 20 substitution 0 -20 Coal 2012 2013 2014E 2015E 2016E Brazil Australia
Slide 11: Dry Cargo: Declining Supply Growth
DRY CARGO DECLINING SUPPLY GROWTH Low net fleet growth in 2014 of around 4-6% Improved markets can release shadow capacity, which can cap improvement but not prevent it High ordering activity in 2013 likely to increase net fleet growth but not before 2016 Fleet development 120 20% 100 15% 80 6
Slide 12: Tankers: 2013 Market – Improvement from 2012
TANKERS 2013 MARKET – IMPROVEMENT FROM 2012 Overall stronger market - slightly disappointing Q4 due to warmer weather than usual in Europe Refining closures in Europe and OECD Asia leading to higher trade together with increased US exports Continued low fleet growth MR West CPP (USD/day) MR Ea
Slide 13: Tankers: Refinery Relocation Drives Increasing Demand
TANKERS REFINERY RELOCATION DRIVES INCREASING DEMAND European refinery sector under continued pressure leading to lower utilisation, closures and higher imports Middle East emerging as a major export hub for refined products Continued growth in US exports Changes in CPP imports (2012-2016) Cha
Slide 14: Tankers: Supply Outlook
TANKERS SUPPLY OUTLOOK Continued low net fleet growth in 2014, though at a higher level than 2013 2013 ordering activity levels could be excessive if continued into 2014 Fleet development 14 20% Million dwt. 12 15% 10 8 10% 6 4 5% 2 0% 0 -2 -5% -4 -6 -10% 2009 2010 2011 2012 2013 2014e 2015e Add
Slide 15: 2014: Improvement Over 2013, But High Volatility
2014: IMPROVEMENT OVER 2013, BUT HIGH VOLATILITY Outlook Comments USDm Dry Cargo Tankers Total Guidance includes operator EBITDA 0-50 30-80 20-120 profit Increased range reflects Profit from 0 vessel sales significant increase in open days compared to 2013 CAPEX 90-120 10% increase in rates wo
Slide 16: 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 2014 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ from the p
Slide 17: Thank you for your attention
Thank you for your attention 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 NORDEN Full year results 2013 | 17 Our business is global tramp shi
Slide 18: Back Up
BACK UP NORDEN Full year results 2013 | 18 Our business is global tramp shipping
Slide 19: A Leading Global Tramp Operator
A LEADING GLOBAL TRAMP OPERATOR Dry cargo Capesize Post-Panamax Panamax Handymax Handysize Total active fleet 240 46 Dry Cargo Tankers Tankers MR Handysize Long history of strong performance World class fuel efficient fleet Significant upside through timecharter fleet and options NORDEN Full y
Slide 20: 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 Co
Slide 21: Enabling Value Creation Based on the Cycle and Throughout the Cycle
…ENABLING VALUE CREATION BASED ON THE CYCLE AND THROUGHOUT THE CYCLE Exploiting the cycle Creating value throughout the cycle Taking a view on the fundamental market and Creating value above industry level irrespective of adjusting our exposure market conditions Levers: Levers: Commercial operations
Slide 22: Overall Results
OVERALL RESULTS USDm 2011 2012 2013 Q4 2013 Y/Y % Contribution margin 239 198 76 7 -61% O/A Group -53 -50 -52 -15 5% EBITDA 186 148 24 -8 -84% EBITDA Dry Cargo 171 131 -5 -13 -104% EBITDA Tankers 26 28 39 8 39% Vessel sales -0 -24 3 0 110% Depreciation -81 -89 -79 -21 -11% EBIT 105 -265 -51 -28 81%
Slide 23: Last 5 Years Performance
LAST 5 YEARS PERFORMANCE Earnings per share (USD) Return on equity 12.4% 12.9% 5.8 5.2 4.4% 2.1 -2.9% -1.2 -15.1% -6.8 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Cash flows, operations and investments (USDm) Dividend yield 4.0% 298 7 3.3% 160 3.0% 120 122 -9 -80 -103 1.8% 1.8% -380 -355 2009
Slide 24: Dry Cargo – Rates
DRY CARGO – RATES Capesize Panamax Supramax & Handysize 45,000 18,000 18,000 40,000 16,000 16,000 35,000 14,000 14,000 30,000 12,000 12,000 25,000 10,000 10,000 8,000 20,000 8,000 6,000 15,000 6,000 4,000 10,000 4,000 2,000 5,000 2,000 0 Sep-13 Mar-13 Apr-13 Dec-13 Jan-13 Aug-13 Oct-13 Jun-13 Jul-13
Slide 25: Financial Strength
FINANCIAL STRENGTH Strong capital structure Net committed cash Strong focus on cash flow USDm 2013 2012 generation Adjusted net interest bearing 189 362 assets* Cash in low-risk deposit T/C obligations** -1,861 -1,646 accounts and securities Newbuilding instalments less -295 -95 proceeds from ve
Slide 26: Fleet Values
FLEET VALUES NORDEN Full year results 2013 | 26 Our business is global tramp shipping
Slide 27: 2013 Development in NORDEN Asset Values
2013 DEVELOPMENT IN NORDEN ASSET VALUES 1,600 1,500 56 1,400 272 1,300 1,200 1,540 -50 1,100 209 -61 -33 1,000 -15 1,162 900 800 Market value Sold Effect of Change in Moved to Change in Value of new Added value Market value 31/12/2012 age* value of joint venture value of contracts in of new 31/12/20
Slide 28: Dry Cargo Fleet Overview
DRY CARGO FLEET OVERVIEW NORDEN Full year results 2013 | 28 Our business is global tramp shipping
Slide 29: Tanker Fleet Overview
TANKER FLEET OVERVIEW NORDEN Full year results 2013 | 29 Our business is global tramp shipping
Slide 30: Dry Cargo – Near-Term Risk Covered
DRY CARGO – NEAR-TERM RISK COVERED NORDEN Full year results 2013 | 30 Our business is global tramp shipping
Slide 31: Tankers – High Spot Exposure
TANKERS – HIGH SPOT EXPOSURE NORDEN Full year results 2013 | 31 Our business is global tramp shipping
Slide 32: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders 13,382 registered shareholders Shareholder capital DKK 43,000,000 owning 92.1% Number of shares and 43,000,000 shares of Approx. 40% international denomination DKK 1 ownership Classes of shares 1 Voting and ownership restrictions None NAS