Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — FY2024 Earnings Presentation
32 slides from Dampskibsselskabet Norden A/s's earnings presentation, Feb 6, 2025
Slide 1: Presentation of Full-Year Results 2024
PRESENTATION OF FULL-YEAR RESULTS 2024 Copenhagen, Denmark, 6 February 2025
Slide 2: Key Highlights Full-Year 2024: Successful Year in a Challenging Market
EBITDA & Net Profit KEY HIGHLIGHTS FULL-YEAR 2024 (2020 – 2024) SUCCESSFUL YEAR IN A CHALLENGING MARKET USD million 1,200 1,159 1,000 • Group net profit of USD 163 million and a ROIC of 14%, despite continued geopolitical 744 800 679 uncertainties and challenging market conditions 600 532 400 432 40
Slide 3: Financial Highlights: Robust Financials in Weakening Markets
FINANCIAL HIGHLIGHTS Net profit per business unit USD million ROBUST FINANCIALS IN WEAKENING MARKETS USD million 800 600 • Group net profit of USD 30 million in Q4 2024 (Q4 2023: USD 43 million) 400 550 133 200 • Assets & Logistics 199 193 268 236 77 0 9 5 -74 • Q4 2024: USD 40 million driven by hig
Slide 4: Market Position: Positioned for Weaker Markets
1-year TC rate MARKET POSITION USD thousand / day POSITIONED FOR WEAKER MARKETS 40 35 30 • Spot rates decreased significantly in Q4 2024 due to higher market efficiency across both dry 25 and tankers 20 15 • Average Supramax and Capesize spot rates declined by 19% and 27% Q/Q, respectively 10 • Aver
Slide 5: Resilient Business Model: Good Long-Term Returns in Volatile Markets
Unique market position RESILIENT BUSINESS MODEL Asset- heavy GOOD LONG-TERM RETURNS IN VOLATILE MARKETS Dry cargo Tanker exposure exposure • Diversity of business model with owner and operator activities across tankers and NORDEN dry enables superior returns over time • Strong value creation through
Slide 6: Guidance: Equipped to Manage Uncertainty
GUIDANCE EQUIPPED TO MANAGE UNCERTAINTY • Based on current outlook and high geopolitical uncertainty, NORDEN expects a 2025 net profit of USD 20-100 million (Realised in FY 2024: USD 163 million) • Includes sales gains from already agreed transactions of USD 16 million (FY 2024: USD 82 million) • Fr
Slide 7: Final Remarks: Successful Year Despite Market Challenges
FINAL REMARKS Updated SUCCESSFUL YEAR DESPITE MARKET CHALLENGES • Resilient 2024 with Group net profit of USD 163 million and a ROIC of 14% • Declining market rates put pressure on operators i.e., Freight Services & Trading • High asset values and period rates supports owners i.e., Assets & Logistic
Slide 8: 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 8 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 9: 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 2025 and subsequent years are subject to uncertainty, and NORDEN’s actual results may therefore differ
Slide 10: Appendix
APPENDIX Consolidated financial information and fleet data for NORDEN Market development and outlook NORDEN at a glance Total shareholder returns and business unit valuation 10 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 11: NORDEN Financials
NORDEN FINANCIALS 11 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 12: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 12 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 13: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 13 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 14: Financial Highlights: Consolidated Financial Information
FINANCIAL HIGHLIGHTS CONSOLIDATED FINANCIAL INFORMATION 14 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 15: Assets & Logistics Fleet Overview
ASSETS & LOGISTICS FLEET OVERVIEW At 31 December 2024 Dry Cargo Vessels in operation Vessels to be delivered Capesize 7 5 Panamax 14 5 Supramax 18 9 Handysize 13 4 Total 52 23 - Of which own vessels Capesize 7 3 Panamax 0 0 Supramax 0 5 Handysize 0 0 Total 7 8 Tankers Vessels in operation Vessels to
Slide 16: Assets & Logistics Capacity and Coverage
ASSETS & LOGISTICS CAPACITY AND COVERAGE Assets & Logistics – Dry Cargo Assets & Logistics – Tankers At 31 December 2024 At 31 December 2024 2025 2026 2027 2025 2026 2027 2025 2026 2027 2025 2026 2027 Own vessels Vessel days Own vessels Vessel days Capesize 1,820 1,825 2,681 MR 3,654 4,015 4,015 Pan
Slide 17: Assets & Logistics: Extensive Optionality in an Uncertain Environment
ASSET & LOGISTICS EXTENSIVE OPTIONALITY IN AN UNCERTAIN ENVIRONMENT • NORDEN’s extensive optionality provides potential value upside in an environment with increasing interest rates, increased new building prices and near-term lower visibility on freight rates due to the macro-economic uncertainties
Slide 18: Market Developments and Outlook
MARKET DEVELOPMENTS AND OUTLOOK 18 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 19: Market Developments: Dry Cargo Market in 2024
Total Dry orderbook vs. age MARKET DEVELOPMENTS (% of fleet) DRY CARGO MARKET IN 2024 Percent 15% 11% Strong start to the dry cargo market followed by significantly lower rates in H2 10% 10% • Strong dry cargo rates in H1 due to Red Sea diversions and increased iron ore exports from Brazil 5% • In H
Slide 20: Market Developments: Tanker Market in 2024
Total tanker orderbook vs. age MARKET DEVELOPMENTS (% of fleet) TANKER MARKET IN 2024 Percent 25% 22% 20% Strong start to tankers followed by significantly lower rates 15% 15% • High product tanker rates in H1 due to longer distances caused by the Red Sea situation 10% • Significantly lower rates in
Slide 21: NORDEN at a Glance
NORDEN AT A GLANCE 21 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 22: NORDEN at a Glance
NORDEN AT A GLANCE 2005: NORDEN establishes Norient 2021: Product Pool with pool-partner Interorient Navigation NORDEN celebrates 150 years of sailing the seven seas 1923: Company Ltd., Cyprus NORDEN’s first motor vessel, NORDBO is delivered 2013: 2023: 1871: 1973: NORDEN finalises its first NORDEN
Slide 23: We Enable Smarter Global Trade
WE ENABLE SMARTER GLOBAL TRADE Vessels operated Tonnes of cargo carried Number of offices We are 500 140 m 19 52 on average in 2024 in 2024 around the world nationalities at NORDEN 23 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 24: 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 24 PR
Slide 25: Our Business Model
OUR BUSINESS MODEL Founded in 1871 and with 19 offices across 6 continents and close to 500 employees, NORDEN is a global provider of ocean-based freight services for bulk and project cargo of all sizes. We integrate freight solutions with port logistics, helping our customers optimise and decarboni
Slide 26: Business Model: Agile Capacity Management Model
BUSINESS MODEL AGILE CAPACITY MANAGEMENT MODEL SELECTED CUSTOMERS AND PARTNERS DRY CARGO PRODUCT TANKERS MULTIPURPOSE HANDYSIZE HANDYSIZE 36,000 - 40,000 DWT 10,000 - 30,000 DWT 28,000 - 39,000 DWT SUPRAMAX PANAMAX MR 46,000 - 52,000 DWT 50,000 - 64,000 DWT 75,000 - 93,000 DWT CAPESIZE LR2 150,000-2
Slide 27: Strategic Scorecard: Delivering on Strategic Objectives
STRATEGIC SCORECARD DELIVERING ON STRATEGIC OBJECTIVES Value creation Growth Profitability Decarbonisation Shareholder Returns Return on Invested Total number of vessel days Margin per day in FST Development in energy Total shareholder returns (TSR) Capital (ROIC) - baseline FY 2019 - rolling five y
Slide 28: Highlights for 2024: ESG Update
HIGHLIGHTS FOR 2024 ESG UPDATE Continued strong execution on the ESG agenda in 2024 Environmental • Lowered emissions by reducing EEOI by 14% compared to our 2022 baseline • Well on-track to reach our mid-term target of min. 16% reduction by 2030 • Conducted first successful engine trials of biofuel
Slide 29: Shareholder Returns and Valuation
SHAREHOLDER RETURNS AND VALUATION 29 PRESENTATION OF FULL-YEAR RESULTS 2024
Slide 30: Highlights for Full-Year 2024: Shareholder Cash Distribution
Cash distributed to shareholders (USD million) HIGHLIGHTS FOR FULL-YEAR 2024 incl. proposed dividends and announced share buy-backs SHAREHOLDER CASH DISTRIBUTION USD million 800 700 600 75% 500 400 744 84% 425 • NORDEN for the full-year 2024 propose a final dividend of DKK 2 per share, bringing 300
Slide 31: Share Price Valuation
SHARE PRICE VALUATION ASSETS & LOGISTICS FREIGHT SERVICES & TRADING NAV-based valuation Earnings-multiple based valuation Per 31/12/2024 USDm Market value of owned vessels 1,382 TOTAL VALUE Market value of T/C & Cover portfolio 437 OF NORDEN Avg. target margin per day next five years (USD) 500 Cash
Slide 32: Thank You
THANK YOU Dampskibsselskabet NORDEN A/S 52, Strandvejen DK-2900 Hellerup Denmark Phone: +45 3315 0451 www.norden.com Connect with us 32 PRESENTATION OF FULL-YEAR RESULTS 2024
Dampskibsselskabet NORDEN — FY2024 Earnings Presentation on 6ix