Slide 1: Q1 2021 Results Teleconference
1 2 M AY 2 0 2 1 Q1 2021 RESULTS TELECONFERENCE 1
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events o
Slide 3: Today's Presenters
TODAY’S PRESENTERS Jacob Meldgaard ▪ Executive Director of TORM plc ▪ CEO of TORM A/S since April 2010 ▪ Chairman of the Board of Danish Shipping and member of the Board of Danish Ship Finance ▪ Previously Executive Vice President of the Danish shipping company NORDEN, where he was in charge of the
Slide 4: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS Q1 FINANCIAL HIGHLIGHTS CORPORATE EVENTS Purchase of eight 2007-2012 built MR EBITDA of USD 18.9m TCE Q1 2021 of USD/day 13,493 Inproduct tanker early 2020, vessels TORM for a total refinanced USDcash 496m of consideration existing debt. of USD 82.5m and the issuance of 5.97 milli
Slide 5: The three LR2 purchases build on TORM's coverage and S&P strategy
THE THREE LR2 PURCHASES BUILD ON TORM’S COVERAGE AND S&P STRATEGY OVER THE PAST YEAR MR freight rates, USD/day # Vessels on the water • TORM has actively managed the spot exposure in the recent volatile market development through coverage strategy as well as sales 80,000 and purchase activities: 76
Slide 6: Dynamic COVID-19 situation continues to affect the product tanker market
DYNAMIC COVID-19 SITUATION CONTINUES TO AFFECT THE PRODUCT TANKER MARKET USD/day Q1 2021 190,000 • Renewed lockdowns in several regions LR2 (avg.) temporarily reversed oil demand MR (avg.) recovery and capped trade flows TORM MR (spot) • The extremely cold weather in mid- 90,000 February led to seve
Slide 7: The oil market has moved from stockbuilding to stockdrawing
THE OIL MARKET HAS MOVED FROM STOCKBUILDING TO STOCKDRAWING • The COVID-19 pandemic led to an unprecedented oil demand destruction Pre-COVID-19 • Initially, refinery runs lagged declines in demand, leading to unprecedented inventory builds bringing the onshore Refined product spare storage capacity
Slide 8: Oil demand in China has rebounded, illustrating the potential post-COVID-19 situation
OIL DEMAND IN CHINA HAS REBOUNDED, ILLUSTRATING THE POTENTIAL POST-COVID-19 SITUATION While the oil demand recovery in the West stalled on increased COVID-19 cases over the year-shift… Oil demand growth vs 2019, % • China’s oil demand (~14% of the Europe United States 10 10 global oil demand) has re
Slide 9: TORM has implemented precautionary measures in India where COVID-19 is affecting oil demand
TORM HAS IMPLEMENTED PRECAUTIONARY MEASURES IN INDIA WHERE THE COVID-19 DEVELOPMENT IS AFFECTING OIL DEMAND No of cases India new COVID cases 400,000 • The recent increase in COVID-19 cases in 300,000 India has caused TORM to implement 200,000 precautionary measures to safeguard both 100,000 the sho
Slide 10: Successful vaccine rollout in the US leading to improved oil demand
SUCCESSFUL VACCINE ROLLOUT IN THE US LEADING TO IMPROVED OIL DEMAND Weekly US Vehicle-Miles Travelled (VMT) vs 2019 respective week US Flight Traveler Throughput (7d avg) % All vehicles Passenger vehicles Trucks 2019 2020 2021 20 3,000,000 10 2,500,000 0 2,000,000 -10 -20 1,500,000 -30 1,000,000 -40
Slide 11: Unwinding floating storage is done, onshore inventories similarly on the way down
THE UNWINDING FLOATING STORAGE IS DONE, ONSHORE INVENTORIES SIMILARLY ON THE WAY DOWN Onshore CPP inventories in key trading hubs* and global CPP floating storage • Onshore CPP inventories in key Mln bbl Mln dwt trading hubs (~20% of global 90 16 Floating storage (RHS) stocks) have declined from the
Slide 12: COVID-19 has led to a new wave of refinery closures, increasing ton-miles
COVID-19 HAS LED TO A NEW WAVE OF REFINERY CLOSURES, INCREASING TON-MILES IN THE MEDIUM- AND LONG-TERM Announced refinery closures and capacity additions in 2020-2023* 130 kb/d 116 kb/d 58 kb/d 55 kb/d 485 kb/d 220 kb/d 137 kb/d 335 kb/d 200 kb/d 80 kb/d 190 kb/d 235 kb/d 267 kb/d 1,030 kb/d 250 kb/
Slide 13: Low tonnage supply growth supporting market recovery
LOW TONNAGE SUPPLY GROWTH SUPPORTING MARKET RECOVERY The product tanker order book at a historical low level as % of the total fleet • The product tanker order 56 book to fleet ratio is at a historical low of 7% • This is supported by historically low crude tanker order book at 9% of the fleet, 37 w
Slide 14: TORM commercially outperforms peers in its key MR segment
TORM COMMERCIALLY OUTPERFORMS PEERS IN ITS KEY MR SEGMENT CORRESPONDING TO USD 12M IN Q1 2021 MR reported TCE, USD/day Q1 2021 performance: • TORM: USD/day 12,935 • Peer average: USD/day 10,337 TORM MR USD USD 14m USD 36m USD 20m USD 24m USD 39m premium* 12m Note: Peer group is based on Ardmore, d’A
Slide 15: TORM's commercial capabilities are focused on optimizing geographical positioning
TORM’S COMMERCIAL CAPABILITIES ARE FOCUSED ON OPTIMIZING GEOGRAPHICAL POSITIONING USD/day (%) 14,000 80 West outperformance Majority of TORM’s MRs west of Suez 12,000 10,000 70 8,000 6,000 60 4,000 2,000 0 50 -2,000 East outperformance Majority of TORM’s -4,000 MRs east of Suez 40 -6,000 -8,000 30 -
Slide 16: Increased coverage de-risk Q2 2021 result
INCREASED COVERAGE DE-RISK Q2 2021 RESULT Open earning days per segment as of 31 March 2021 28,903 29,246 4,189 4,211 3,093 3,234 LR2 14,236 LR1 1,599 689 MR 20,895 21,102 Handy 11,427 521 725 698 2021 2022 2023 Q2 2021 coverage USD/day Q1 2021 TCE per day Q2 2021 cover as of 7 May 2021* % of total
Slide 17: TORM uses freight derivatives to obtain attractive coverage
TORM USES FREIGHT DERIVATIVES TO OBTAIN ATTRACTIVE COVERAGE Freight derivatives* are a natural element of … and TORM has historically benefitted from the use of freight derivatives but M- TORM’s coverage strategy… t-M of unrealized element impacts TORM’s P&L statement ROY 2021 cover as of 31 March 2
Slide 18: Net asset value estimated at USD 788m while net loan-to-value of just 55%
NET ASSET VALUE ESTIMATED AT USD 788M WHILE NET LOAN-TO-VALUE OF JUST 55% 31 March 2021 figures, USDm Net LTV of 55% 1,705 858 788 210 22 13 117 Value of vessels Outstanding debt Committed Cash Working Capital Other* Net Asset Value (incl. newbuildings) CAPEX • Net Loan-to-Value was 55% • Net Asset
Slide 19: Well-positioned to service future capex commitments and further leverage market opportunities
WELL-POSITIONED TO SERVICE FUTURE CAPEX COMMITMENTS AND FURTHER LEVERAGE MARKET OPPORTUNITIES Liquidity and CAPEX as of 31 March 2021 Available liquidity, USDm Cash CAPEX commitments, USDm Expected closed during Q2 2021 3x 2015-built LR2 Team Tankers1 Newbuildings incl. scrubber 446 24 92 329 Purcha
Slide 20: Favorable financing profile with no major near-term maturities
FAVORABLE FINANCING PROFILE WITH NO MAJOR NEAR- TERM MATURITIES Scheduled debt repayments as of 31 March 2021 USDm 849 10 69 16 Financial lease 144 92 16 Mortgage debt 92 13 90 55 705 72 33 289 Oustanding debt as ROY 2021 2022 2023 2024 2025 Hereafter of 31 March 20211 Ample headroom under our attra