Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — Q1 2010 Earnings Presentation
14 slides from Dampskibsselskabet Norden A/s's earnings presentation, May 19, 2010
Slide 1: NORDEN 1st Quarter Results 2010
NORDEN 1st QUARTER RESULTS 2010 THE PREFERRED PARTNER IN GLOBAL TRAMP SHIPPING. UNIQUE PEOPLE. OPEN MINDED TEAM Copenhagen, 19 May 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 Q1 2010 y Group highlights y Financial highlights y Major transactions y Business review and market outlook y Dry Cargo y Tanker y Full-year expectations y Q & A Session 2
Slide 3: Q1 2010 Highlights
Q1 2010 HIGHLIGHTS Group financials Key messages USDm EBITDA • Group EBITDA increased by almost 50% compared to last quarter • NORDEN was well positioned towards the improving rates in smaller Dry Bulk segments • Strong winter market supported Tanker earnings • Theoretical NAV increased by 13% • We
Slide 4: Q1 2010 Key Financials
Q1 2010 KEY FINANCIALS Continued EBITDA improvement Gearing reduced further y Dry Cargo EBITDA increased for y Strong cash position the fifth q quarter in a row since y Almost 2/3 of T/C obligations now beginning of 2009 covered y Earnings positively affected by y Outstanding newbuilding booking of
Slide 5: Major Transactions
MAJOR TRANSACTIONS Dry Cargo Tanker y Sale of 1 Capesize and 1 y Bought 3 MR product tankers in Handymax y vessel January y y Cancellation of T/C on 1 Panamax y In April, 2 Handysize tanker vessel vessels which NORDEN had on long-term T/C were bought y Final settlement with RTI Ltd. (Rusal) y 3 x 2-
Slide 6: Dry Cargo Market
DRY CARGO MARKET y Chinese Q1 iron ore import up 18% Y/Y but on par with Q4 2009 y Chinese coal imports remained a major driver - up 227% Y/Y y Growing demand from steel industry revival in RoW 70 Chinese Iron Ore Import 18 Chinese Coal Import 85 Steel production (mill tonnes) (mill tonnes) (mill to
Slide 7: Dry Cargo Market
DRY CARGO MARKET y Seasonal strength in small dry cargo vessel classes y Strong soy bean exports from South America y Increasing congestion especially in Australian coal ports 8 Soy export (mill tonnes) 7 6 USA 5 Brazil 4 3 2 1 0 Sources: RS Platou, USDA, Brazilian Government, Bloomberg 7
Slide 8: Dry Cargo Market
DRY CARGO MARKET y Continued significant shortfall of actual deliveries compared to planned deliveries y However, actual deliveries are rising fast with 18 mill. dwt delivered in Q1 y If Q1 delivery pace continues, 2010 would see >60 mill. dwt delivered Mill. dwt. Dry bulk deliveries 35 50% 45% 30 4
Slide 9: Tanker Market
TANKER MARKET y Oil demand growth forecasts are revised upwards y Added supply pressure from vessels released from floating storage y Crude throughput beginning to increase again in OECD region 90 World Oil Demand 88 87,4 (mb/d) 87,0 87,2 86 3 85,9 86,3 85,9 86 86,3 3 86,0 86 85,4 85,3 84,4 84,1 84
Slide 10: Tanker Market
TANKER MARKET y High Q1 fleet growth affected by postponements from 2009 y Net additions have decreased last two quarters due to higher scrapping y Planned fleet additions still at high expected level for 2010 Mio. dwt Tanker deliveries 18 50% 15,4 Q4-Q1 shortfall 16 combined: 25% 40% 13,5 14 11,9 1
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 g EBITDA 200-230 -20-0 170-220 y No significant new counterparty issues Profit from 29 + 5 y Only known vessel sales are included vessel sales in JV in guida
Slide 12: Forward Looking Statements
FORWARD LOOKING STATEMENTS This p presentation contains certain forward-looking g statements reflecting g 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 result
Slide 13: Q&A
Q&A Carsten Mortensen, CEO Dampskibsselskabet D kib l k b t 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
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