Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — D/S Norden — Q1 2020 Earnings Presentation
27 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Results
D/S NORDEN Q1 2020 Results Copenhagen, Denmark 5 May 2020 1 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 2: Agenda
AGENDA • Highlights Q1 2020 • Business unit performance & market outlook • 2020 guidance • Final words 2 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 3: Highlights Q1 2020
01. Highlights Q1 2020 3 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 4: Highlights Q1 2020: Business Update
01. HIGHLIGHTS Q1 2020 BUSINESS UPDATE Quarterly Adjusted Results Strong start to the year Adjusted Result Q1 2020 USD 29 million (Q1 2019: USD 7 million) • Asset Management USD 7 million 35 31 29 • Dry Operator USD 4 million 30 • Tanker Operator USD 18 million 25 20 EBIT Q1 2020 USD 37 million (USD
Slide 5: Substantial Value Beyond Asset Values
01. HIGHLIGHTS Q1 2020 SUBSTANTIAL VALUE BEYOND ASSET VALUES ASSET MANAGEMENT DRY OPERATOR TANKER OPERATOR NAV-BASED VALUATION EARNINGS BASED VALUATION EARNINGS BASED VALUATION Dry Cargo and Tanker USDm USDm USDm Market value of own vessels 792 Adjusted net result last 12 16 Adjusted net result last
Slide 6: Business unit performance and market outlook
02. Business unit performance and market outlook 6 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 7: Asset Management – Results and Key Development
02.BUSINESS UNITS PERFORMANCE AND MARKET OUTLOOK ASSET MANAGEMENT – RESULTS AND KEY DEVELOPMENT • Adjusted Result in Q1 USD 7 million • Actively reduced exposure in dry cargo - Adjusted Result for the last 4 quarters USD 5 million - Sold 1 Supramax - EBIT in Q1 USD 12 million - Leased out 2 scrubber
Slide 8: Asset Management – Dry and Tank Market in Q1
02.BUSINESS UNITS PERFORMANCE AND MARKET OUTLOOK ASSET MANAGEMENT – DRY AND TANK MARKET IN Q1 • Dry asset and time charter markets declined • Tanker rates and asset prices remained firm – Weak demand due to COVID-19 lockdowns – Result of significant restocking and storage demand – 5-year-old Suprama
Slide 9: Asset Management – Dry Cargo Outlook
02.BUSINESS UNITS PERFORMANCE AND MARKET OUTLOOK ASSET MANAGEMENT – DRY CARGO OUTLOOK • Recovery depends on COVID-19 and the economy • Demand is driven by China – Higher scrapping to reduce fleet growth – Iron ore imports to China is strong due to stocking – End of scrubber dry dockings to add effec
Slide 10: Asset Management – Tanker Outlook
02.BUSINESS UNITS PERFORMANCE AND MARKET OUTLOOK ASSET MANAGEMENT – TANKER OUTLOOK • Strong Q2 market expected • Challenging H2 market – Historically high product tanker rates under high volatility – Very weak underlying demand due to COVID-19 – Crude supply overhang forcing floating storage – Vesse
Slide 11: Dry Operator - Testament to a Resilient Business Model
02.BUSINESS UNITS PERFORMANCE AND MARKET OUTLOOK DRY OPERATOR - TESTAMENT TO A RESILIENT BUSINESS MODEL • Adjusted Result of USD 4 million in Q1 • Very weak dry cargo market – Margin of USD 199 per vessel day – Supramax and Panamax spot rates 16-18% lower than Q1 2019 – Good arbitrage from short-ter
Slide 12: Tanker Operator - Good Start as a Business Unit
02.BUSINESS UNITS PERFORMANCE AND MARKET OUTLOOK TANKER OPERATOR - GOOD START AS A BUSINESS UNIT • Adjusted Result of USD 18 million in Q1 • Strong tanker market in Q1 – Margin of USD 1,855 per vessel day – Saudi Arabia lowered crude prices and increased crude supply – Combination of strong spot rat
Slide 13: Guidance & Final words
03. Guidance & Final words 13 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 14: 2020 Guidance
03. GUIDANCE & FINAL WORDS 2020 GUIDANCE ASSET MANAGEMENT DRY OPERATOR TANKER OPERATOR • Still expects significant • Adjusted Result above that for • Adjusted result higher than in improvement in profits 2019 2019 compared to 2019 • Based on a net margin per • Based on a strong spot market NORDEN ra
Slide 15: So Much More Than Just Owned Vessels…
03. GUIDANCE & FINAL WORDS SO MUCH MORE THAN JUST OWNED VESSELS… • True value of NORDEN is more than the market value of owned vessels • Q1 shows the strength of the business model • All 3 business units proved profitable in a challenging dry cargo market and volatile tanker market • Expecting a dif
Slide 16: Forward Looking Statements
03. GUIDANCE & FINAL WORDS - DISCLAIMER 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 2020 and subsequent years are subject to uncertainty, and NORDE
Slide 17: 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.ds-norden.com dampskibsselskabetnorden ds-norden ds_norden dsnorden ds_norden 17 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 18: Back-up slides
Back-up slides 18 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 19: 19 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
19 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 20: Q1 Income Statement
Q1 INCOME STATEMENT USD million Asset Management Dry Operator Tanker Operator Total Contribution margin 57.6 21.6 31.6 110.8 Profit before depreciation, amortisation and impairment losses etc. (EBITDA) 52.5 11.3 25.4 89.2 Profit/loss from operations (EBIT) 12.0 6.7 18.3 37.0 Profit/loss for the peri
Slide 21: Cash Flows During Q1
CASH FLOWS DURING Q1 21 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 22: Outperformed the Market Out of Years
OUTPERFORMED THE MARKET 12 OUT OF 14 YEARS 5,000 4,000 3,000 USD/day 2,000 1,000 0 -1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Norden TCE vs. 1-year TC 22 | Q1 2020 Results CUSTODIANS OF SMARTER GLOBAL TRADE
Slide 23: Major Shipping Trends
MAJOR SHIPPING TRENDS Decarbonisation Shorter shipping cycles • Climate change is a driver • Increased uncertainty and • Decreased global use of oil and coal complexity • Reluctance to order newbuildings with • Opportunities for trading and current carbon-based technology earning margins in a volati
Slide 24: NORDEN's Transformation
NORDEN’S TRANSFORMATION NORDEN has transitioned to a new business unit structure, which brings more agility and focus. This transition will facilitate: Higher risk adjusted returns • Short term trading-oriented operator activities • Active exposure management Better performance • Transparency by est
Slide 25: Business Unit Structure
BUSINESS UNIT STRUCTURE ASSET MANAGEMENT DRY OPERATOR TANKER OPERATOR Active management of cyclical Providing efficient global Providing efficient global market exposure within dry transport solutions to customers transport solutions to and cargo and product tanker and active management of short- ac
Slide 26: Business Unit Value Drivers
BUSINESS UNIT VALUE DRIVERS Market Regional Options Employment Clip deals Vessel Vessel Minimising Technical Pool exposure exposure arbitrage selection operation ballast management Management Taking a view Taking a view Securing and Choosing Securing margin Evaluating Speed setting, Optimise the Saf
Slide 27: The Share (DNORD)
THE SHARE (DNORD) Master data Composition of shareholders Shareholder capital DKK 42,200,000 • International ownership share counted 634 Number of shares and registered shareholders, in aggregate owning denomination 42,200,000 shares of DKK 1 28.1% of the share capital. Classes of shares 1 Voting an