Dampskibsselskabet Norden A/s · OMXCOP:DNORD
Dampskibsselskabet Norden A/s — FY2010 Earnings Presentation
19 slides from Dampskibsselskabet Norden A/s's earnings presentation, 2011
Slide 1: Full-Year Results 2010
FULL-YEAR RESULTS 2010 Presentation of 2010 results 1
Slide 2: Today's Agenda
TODAY’S AGENDA AR 2010 Financial highlights Market reviews Full-year expectations Q&A Presentation of 2010 results 2
Slide 3: Key Take Aways
KEY TAKE AWAYS Key achievements Results in high end of November guidance Above March guidance Group EBITDA: USD 240 mill. Cash flow from operations: USD 300 mill. 13 % return on equity with low risk profile Realized T/C earnings above market in both segments (again) Patience has paid off – continuou
Slide 4: 2010 Highlights
2010 HIGHLIGHTS 2010 EBITDA: USD 240 m Profit from vessel Return sales:(%) on equity USD 70m USDm Major 125 settlements 100 75 41 37 70 50 39 47 60 22 25 42 27 12 13 0 2006 2007 2008 2009 2010 2010 Q1 2010 Q2 2010 Q3 2010 Q4 Theoretical NAV: DKK 308 per share Cash flows, operations and investments U
Slide 5: Financial Performance 2010
FINANCIAL PERFORMANCE 2010 Comments 2010 Financials (USDm) Full Dry Cargo EBITDA up 80% Q1 Q2 Q3 Q4 Year compared to 2009 CM II Group 92 111 36 48 287 Up 23% excluding one-off items of USD 78 mill. O/A Group -13 -12 -14 -9 -48 Executed on strategy of EBITDA 79 100 22 39 240 covering exposure Group T
Slide 6: Core Fleet Changes
CORE FLEET CHANGES Improved quality and timing of asset base Strong growth in cash generating core fleet Core fleet changes Core fleet development in 2010 (Owned vessels and long term charters with purchase options) Dry Cargo: Buy/sell to improve portfolio Dry Tanker Sold and Sell prompt; invest def
Slide 7: Fleet Values
FLEET VALUES Total theoretical NAV of USD 2.3 bn or DKK 308 per share Value of CPs with purchase options of DKK 42 per share No need for impairments of fleet values Value development Total theoretical NAV (USDm) Comparable value change during 2010 2,309 (excl. new vessels) 126 Dry: + 9% 554 1,518 48
Slide 8: Dry Cargo Highlights
DRY CARGO HIGHLIGHTS Total coverage up almost 21.000 days since Q3 54% of capacity covered for 2011-13 Half of open exposure in the period is in Handysize Presentation of 2010 results 8
Slide 9: Dry Cargo Market - Short Term
DRY CARGO MARKET - SHORT TERM Expected lower market average in 2011 ...but Q2 may see rebound due to strong grain trade In real oversupply situation, NORDEN is ready to invest Mill dwt Dry Bulk Deliveries Pct Expected lower market average 50 50% in 2011 45 45% 40 40% Overall commodity demand growth
Slide 10: Dry Cargo Market - Long Term
DRY CARGO MARKET – LONG TERM Continued high commodity prices expected to support investments in capacity expansions Brazilian exports will have major impact on market Monthly Chinese iron imports by source 2011-13 2013 Planned iron ore export Large miners’ iron ore capacites 35 capacity expansions (
Slide 11: Tanker Highlights
TANKER HIGHLIGHTS Key achievements USD per day MR T/C rates Realised TCE beat market again 25,000 Scale benefits through Norient 20,000 Product Pool 15,000 10,000 MOEPS – significant efficiencies 5,000 and bunker savings - Growing capacity positioned for Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 market recovery 2009
Slide 12: Tanker Market
TANKER MARKET Global oil demand driven by emerging markets Chinese and Indian refineries expected to drive increases in throughput (Asia ex. OECD countries, mb/d) +4% 21 +6% 20 19 18 17 16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2008 2009 2010 2011 Source: IEA Presentation of 2010 results 12
Slide 13: Tanker Supply
TANKER SUPPLY The worst of supply growth is most likely behind us Expectations for 2011 is a 5% increase in the MR fleet and a 6% decline in the Handysize fleet 20% LR1 Fleet 16% MR Fleet 15% Handysize Fleet 12% 10% 9% 7% 5% 5% 5% 4% 2% 0% 0% -1% -5% -5% -6% -10% 2009 2010 2011 2012 Source: SSY Pres
Slide 14: Outlook on Strategy 2011-13
OUTLOOK ON STRATEGY 2011-13 Strategy ’long term growth in challenging times’ is focused on leveraging the unique strengths of NORDENs brand name and balance sheet Group target: Provide superior total shareholder returns compared to peer group Dry cargo Current cargo book Grow cargo volumes by 15% p.
Slide 15: 2011 Full Year Guidance
2011 FULL YEAR GUIDANCE Outlook Key assumptions USDm Dry Cargo Tanker Total Guidance based on current capacity and coverage EBITDA 125-155 20-30 135-175 Korea Line default on remaining 2.5 years of charter Profit from Gain from settlement of USD 9 m. vessel sales - included in earnings Only known an
Slide 16: 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 the remainder of 2011 and subsequent years are subject to uncertainty, and NORDEN’s actual results may
Slide 17: Q&A
Q&A Carsten Mortensen, CEO Dampskibsselskabet 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 Presentation of 2010 results 17
Slide 18: Thank You For Your Attention
THANK YOU FOR YOUR ATTENTION Q&A Session Presentation of 2010 results 18
Slide 19: Vessel Values
Vessel values Second hand vessels hit most recent trough in December 2008 for Drycargo and November 2009 for Tankers Newbuilding prices relatively stable over the past 1½ - 2 years Products 47-51K DWT - Newbuilding Bulk 56,000 DWT - Newbuilding Products 47,000 DWT - 5 Year Old Bulk 56,000 DWT - 5 ye
Dampskibsselskabet NORDEN — FY2010 Earnings Presentation on 6ix