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8 Ma r ch 2 0 1 6
2015 FULL-YEAR AND Q4 RESULTS
2
SAFE HARBOR STATEMENT
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 or performance, and underlying assumptions and statements other than statements of historical facts. The words “believe,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “plan,” “potential,” “may,” “should,” “expect,” “pending” and similar expressions generally identify forward-looking statements.
The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond our control, the Company cannot guarantee that it will achieve or accomplish these expectations, beliefs or projections.
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward- looking statements include the strength of the world economy and currencies, changes in charter hire rates and vessel values, changes in demand for “ton miles” of oil carried by oil tankers, the effect of changes in OPEC’s petroleum production levels and worldwide oil consumption and storage, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry-docking, changes in TORM’s operating expenses, including bunker prices, dry-docking and insurance costs, changes in the regulation of shipping operations, including requirements for double hull tankers or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists.
In light of these risks and uncertainties, you should not place undue reliance on forward-looking statements contained in this release because they are statements about events that are not certain to occur as described or at all. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.
Except to the extent required by applicable law or regulation, the Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
3
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
• TORM’s Restructuring, Strategy and Corporate Reorganization
4
Product tanker
market
• The product tanker freight rates across segments were USD/day ~23,000 in 2015, which are the highest since 2008
• Low oil price increased refinery margins in the first half of 2015 leading to higher production of clean petroleum products
• Freight rates peaked in Q3 2015. Freight rates in Q4 2015 and Q1 2016 have also been at profitable and strong levels
Corporate
events
• TORM’s Restructuring was implemented on 13 July 2015, thereby creating a leading product tanker owner-operator with 81 owned vessels in
addition to providing TORM with strategic and financial flexibility
• TORM became a pure-play product tanker company by completing the planned wind-down of bulk activities
• Planned corporate reorganization by a redomiciliation to the UK with the aim of facilitating a future dual listing on Nasdaq Copenhagen and
New York Stock Exchange
Sales &
Purchase
• Delivery of three MR newbuildings and three modern MR second-hand vessels (last three MR newbuildings have been delivered in the first
quarter of 2016)
• Four LR2 newbuilding contracts with scheduled delivery in 2017-2018 including option for additional six vessels
• The value of TORM’s product tanker fleet has remained flat in the fourth quarter of 2015
2015
Results
HIGHLIGHTS FOR 2015
• Pro forma EBITDA of USD 319m and Profit before tax of USD 188m, which is in line with guidance
• Q4 2015 EBITDA of USD 62m and Profit before tax of USD 28m
• Pro forma RoIC of 14% and pro forma Earning per Share of USD 2.9
• Net Asset Value estimated at USD 1,169m, corresponding to a NAV/share of USD 18.3 or DKK 125.1
• For the full year 2016, TORM expects:
‒ EBITDA in the range of USD 250-330m
‒ Profit before tax in the range of USD 100-180m
2016
guidance
5
PRO FORMA EBITDA OF USD 319M AND A POSITIVE PBT OF USD 188M FOR 2015
• Full-year pro forma EBITDA of USD
319m and pro forma profit before tax of
USD 188m
• Full-year Equity of USD 976m and Cash
and cash equivalents of USD 168m
• Q4 EBITDA of USD 62m and profit
before tax of USD 28m
• Full-year reported EBITDA of USD
210m and profit before tax of USD 127m
USDm Pro forma
2015*
Pro forma
2014*
Reported
2015
Reported
Q4 2015
P&L
TCE Earnings 582 414 371 129
Gross profit 361 172 236 73
Sale of vessels 0 0 0 0
EBITDA 319 119 210 62
Profit before tax 188 1 127 28
Balance sheet
Equity 976 842 976 976
NIBD 612 619 612 612
Cash and cash equivalents 168 70 168 168
Key drivers
Number of vessels (#) 78 79 78 78
Tanker TCE/day (USD) 22,879 15,171 22,155 19,757
Tanker OPEX/day (USD) 7,193 7,655 7,085 7,330
* Pro forma figures for 2014 and 2015 presented as though the Restructuring occurred as of 1 January 2014 and 1 January 2015 respectively and include the combined
TORM and Njord fleet
6
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
• TORM’s Restructuring, Strategy and Corporate Reorganization
7
PRODUCT TANKER FREIGHT RATES IN 2015 REACHED THE HIGHEST SINCE 2008
Source: Clarksons. Spot earnings: LR2: TC1 Ras Tanura-> Chiba, LR1: TC5 Ras Tanura-> Chiba and MR: average basket of Rotterdam->NY, Bombay->Chiba, Mina Al Ahmadi->Rotterdam, Amsterdam->Lome,
Houston->Rio de Janeiro, Singapore->Sidney
FREIGHT RATES IN ‘000 USD/DAY
1H 2015
• Product tanker market benefitted from higher refinery margins and output of
clean petroleum products
• The MR segment benefitted from strong gasoline demand in the US as well
as increased USG exports to South and Latin America
• High European exports to West Africa and large volumes of naphtha to the
Far East supported the LR segments
• In the East, the newly added refineries in the Middle East contributed to an
increase in export volumes
• A larger part of the LR2 fleet switched into dirty trade, as freight rates for
dirty vessels showed remarkable strength
2H 2015
• A seasonal reduction in US gasoline demand and declines in West African
demand caused the markets to soften from high levels seen in July-August
• US clean product exports reached an all-time high in Q4, but ample tonnage
supply limited improvements in rates
• China’s product exports reached record highs in 2H 2015
• Strong naphtha arbitrage flows from West to East and mixed aromatics
flows from Europe to China increased the number of vessels in the East
• Diesel/gasoil stocks in consuming areas rose to record levels and refinery
margins contracted, and the usual Q4 freight rate spike did not occur
• Logistical bottlenecks led to forced floating storage and longer sailing routes
8
DEMAND OUTLOOK FOR THE PRODUCT TANKER MARKET REMAINS POSITIVE
Sources: IEA, WoodMackenzie, TORM Research
• Low oil price is expected to continue to support oil demand in
2016, positively affecting demand for product tankers
• Global oil demand is forecasted to grow by an average of 1.3
mb/d p.a. during 2016-2018, well above the 2005-2015
average of 0.9 mb/d
• A shift in global oil demand towards consumer fuels
(gasoline) is expected to lead to tighter product markets (as
most recent refinery projects are diesel-focused) and
consequently more inefficient trade patterns
• Gasoline market tightness is further intensified by the fact that
refinery capacity additions will lag demand growth for the
second half of 2016, and will barely cover demand growth in
2017-2018
• Increase in China’s export quotas may lead to substantially
higher diesel exports from China putting pressure on other
refineries in Asia
• The lifting of the US crude export ban has weakened the cost
advantage of the US refineries and may lead to lower USEC
refinery runs and consequently higher imports
• Over longer term, refinery rationalization will continue in
Europe and the Pacific while more capacity will be added in
Asia and the Middle East supporting long-haul trade
• Ton-mile demand for product tankers is forecast to grow by
slightly above 6% p.a. during 2016-2018
GLOBAL GASOLINE AND DIESEL/GASOIL DEMAND GROWTH
m b/d
REFINERY NET EXPANSIONS AND OIL DEMAND GROWTH 2014-2018
‘000 b/d
9
SUPPLY OUTLOOK FOR THE PRODUCT TANKER FLEET VARIES BY SEGMENT
NET FLEET GROWTH Y-O-Y (NO. OF VESSELS)
• Product tanker ordering gained momentum towards
the end of the year, as owners rushed to bring
forward orders before the Tier 3 emission
regulations took effect on 1 January 2016
• Product tanker deliveries totaled 9.9m dwt during
2015 (fleet growth of 5.9% in terms of no. of
vessels and 6.5% in terms of dwt)
• In 2016, the fleet is forecasted to expand by 5-6%
in terms of no. of vessels (~7% in terms of dwt)
• The LR2 and LR1 segments are set to lead the
growth, while the MR growth is expected to slow
down from the 2015 level
• The total product tanker fleet is forecasted to grow
by an average of 5% p.a. during 2016-2018 in
terms of no. of vessels (6% in terms of of dwt)
Note: Increase calculated basis number of vessels. The number of vessels by the beginning of 2016 was: LR2 285, LR1 325, MR 1,496, Handy 678.
Note: Net fleet growth: Gross order book adjusted for expected scrapping and delivery slippage.
Source: TORM Research
2005-2014 average fleet growth for
LR2, LR1, MR and Handysize
%
10
• In Q2 and Q3, the second-hand market was
relatively active, but it slowed down towards
the end of Q3 and into Q4
• Second-hand prices increased generally
until Q3 where more sellers appeared.
• The rising supply of tonnage for sale
widened the price cap as buyers started to
discount prices due to the high number of
sales candidates. The number of excess
sale candidates increased towards the end
of the year
• So far in 2016, ordering of product tanker
newbuildings has been very limited
Source: Clarksons
USDm
LR1 - Newbuilding MR - Newbuilding
USDm
MR - 5 yr. Second-Hand
USDk/day
MR 1Yr T/C
VESSEL PRICE DEVELOPMENT
LR2 - Newbuilding
PRODUCT TANKER VESSEL PRICES
11
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
• TORM’s Restructuring, Strategy and Corporate Reorganization
12
Unfixed days
2017 2018
29,029
4,015
18,615
2,5553,844
28,297
4,004
18,777
2,5312,986
2016
26,657
3,870
18,115
2,4242,249
HandyMRLR1LR2
Illustrative change in cash flow generation potential for the TORM Fleet
∆ Average TCE/day 2016 2017 2018
USD 2,000 53.3 56.6 58.1
USD 1,000 26.7 28.3 29.0
USD (1,000) (26.7) (28.3) (29.0)
USD (2,000) (53.3) (56.6) (58.1)
USDm
# of days
Of total earning days 92% 97%
TORM HAS SIGNIFICANT OPERATING LEVERAGE IN THE
PRODUCT TANKER MARKET
98%
13
Notes:
• Peer gorup is based on Ardmore (split by ECO and ECO-modified); d’Amico, Frontline 2012, Norden, BW, Teeday Tankers and Scorpio
• Q4 2015 figures are missing Frontline 2012 and BW reporting is based on prospectus in 2015
USD/day
PEER COMPARISON SHOWS THAT TORM HAS CONTINUED TO PERFORM COMMERCIALLY DESPITE FINANCIAL DIFFICULTIES AND AN OLDER FLEET
0
5,000
10,000
15,000
20,000
25,000
30,000
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
MR - reported TCE
Peer high-low TORM Peer average
14
PRO FORMA OPEX IS TRENDING DOWNWARDS
9,500
9,000
8,500
8,000
7,500
7,000
6,500
0
LR1
LR2
Q3 15Q2 15Q1 15Q4 14
Handysize
MR
Q4 15
USD/operating day
Q3 14
15
TORM has maintained a fully integrated business model…… and TORM’s cost program has trimmed admin expenses
significantly
Admin. expenses (quarterly avg. in USDm)
• TORM has a fully integrated business model to obtain the
highest possible
‒ trading flexibility
‒ earning power
• TORM manages
‒ ~80 vessels commercially
‒ ~75 vessels technically
• Global reach ensures proximity to customers
• Outsourced technical and commercial management would
affect other line items of the P&L
• Average admin cost per earning day is 1,580 USD
TORM HAS A FULLY INTEGRATED BUSINESS MODEL AND ADMIN EXPENSES ARE TRENDING SIGNIFICANTLY DOWN
0 2 4 6 8 10 12 14 16 18 20 22 24
2012
2013
2011
2008
2014
2015
2010
2009
proforma -18%
-53%
16
TORM’S NET ASSET VALUE ESTIMATED AT USD 1,169M
1,16954168
224
7811,951325
1,626
Net Asset
Value
Working
Capital
CashCommittet
CAPEX
Outstanding
debt
Total vessel
value
Value of
newbuilidngs
Value of
vessels
on water
LTV of 51%
• Based on broker values, TORM’s vessels
including newbuildings were at 31
December 2015 estimated at USD
1,951m
• With an outstanding debt of USD 781m
and committed CAPEX of USD 224m,
TORM’s Loan-to-Value was at 51%
ensuring a strong capital structure
• Adjusting for cash and working capital,
TORM’s Net Asset Value (NAV) was
estimated at USD 1,169m
• On a per share basis, the NAV was
estimated at USD 18.3 and DKK 125.1
31 December figures, USDm
17
Ample headroom under our attractive
covenant package:
Loan-to-Value (depending on facility)
Minimum liquidity: USD 50m*
Minimum book equity ratio: 25%
(adjusted for market value of vessels)
Debt repayments do not include any potential cash sweep under TORM’s loan facilities. * Of which USD 20m must be cash or cash equivalents
383
57
13973
6069781
2019
repayment
2017
repayment
2018
repayment
2020
repayment
HereafterDebt as of 31
Dec. 2015
2016
repayment
22486
7562
Total2016 20182017
75168
Available
debt facility
Cash position
CAPEX commitments Available liquidity
CAPEX and Liquidity (USDm)
TORM is well-positioned to service future
CAPEX and debt commitments
Strong operational cash flows expected in
2016
Scheduled debt repayments (USDm)
100% 9% 8% 9% 18% 7% 49%
TORM HAS A FAVOURABLE FINANCING PROFILE AND STRONG LIQUIDITY POSITION
115
243
359Expected financing
of LR2 newbuildings
Total available
liquidity
18
EBITDA
(USDm)
Profit before
tax (USDm)
Earnings per
Share (USD)
2016 full-year result USD/day 1,000
freight rate change
250 – 330 +/- 27
100 –180 +/- 27
+/- 53
+/- 53
+/- 0.4
FORECASTED EBITDA FOR THE COMBINED COMPANY IN THE RANGE OF USD 250M TO USD 330M FOR FY2016
With 26,657 unfixed earning days as of 31 December 2015, TORM’s financial result is highly exposed to
freight rate fluctuations
USD/day 2,000
freight rate change
1.6 – 2.8
Earning per
Share* (DKK)+/- 2.810.7 – 19.2
* Earning per Share in DKK is calculated assuming an USD/DKK fx rate of 6.81
+/- 0.8
+/- 5.7
19
• Highlights
• Product Tanker Market Overview and Outlook
• Financial and Operating Performance
AGENDA
• TORM’s Restructuring, Strategy and Corporate Reorganization
20
THE RESTRUCTURING PROVIDED A DELEVERAGING OF TORM’S BALANCE SHEET
536
312134
817
122
561
Total debt
and CAPEX
commitments
Remaining
newbuilding
CAPEX
Oaktree debtTORM
reinstated
debt
Debt-to-
equity
Debt write
down
TORM debt,
pre
Restructuring
1.409
LTV
164%
LTV
51%
Total vessel
values
1.603
742
861
Vessel
value
861
Pre-restructuring
capital structure
Development in debt
and CAPEX commitments
Post-restructuring
capital structure
Note:
Vessel values are based on 30 June 2015 broker values. Debt write-down and debt-to-equity conversions have been simplified and include other minor elements.
• The Restructuring recapitalized TORM’s
balance sheet by reducing the Loan-to-
Value ratio from 164% to 51% via three
interlinked steps:
1. Debt write-down of USD 536m in
exchange for warrants
2. Debt conversion of USD 312m into
equity reinstating debt at USD 561m
3. Asset contribution of 25 on-the-water
vessels and six newbuildings including
debt of USD 134m and CAPEX
commitments of USD 122mOaktree vessel values
TORM vessel values
July 2015 illustration
21
THE RESTRUCTURING HAS CREATED A LEADING PRODUCT TANKER COMPANY
PRE-Restructuring POST-Restructuring
On-the-water vessels Newbuildings
Product tanker owner with a fleet of
43 vessels
Top three product tanker owner-
operator with 74 on-the-water vessels
and seven newbuildings
(31 December 2015)
TORM’s Restructuring has created a
leading product tanker owner-operator by
combining TORM’s existing 43 on-the-
water vessels with Oaktree’s 25 on-the-
water vessels and six newbuilidngs
Following the Restructuring, TORM has
purchased three modern second-hand MR
vessels and ordered four LR2 newbuildings
(with option for six additional vessels)
Note:
As of 8 March 2016, TORM has taken delivery of the remaining three MR newbuildings
22Strong capital structure Selective fleet growth
One TORM – Superior integrated operating platformPure-play product tanker owner
TORM AIMS TO BE REGARDED AS THE REFERENCE COMPANY IN THE PRODUCT TANKER SEGMENT
One TORM – Superior integrated operating platform
Global
scaleOne
TORM
Financial
flexibilityGrowth
Active in all large segments to meet customer demands
~80 owned product tankers
Primarily spot-orientated
Limited T/C commitments
In-house technical and commercial management (preferred by
customers)
Enhanced responsiveness to
customers and higher TCEs
Cost-efficient without leakages
May serve as consolidator
Selective growth based on
projected financial returns
In-house S&P team with relationships with
brokers, yards, banks and shipowners
Focused on profitabilityModerate debt levels with
attractive debt profile
Financial strength to pursue growth
Strong balance sheet gives a competitive advantage
when pursuing vessel acquisitions from lenders and yards
23
TORM CORPORATE REORGANIZATION
• TORM A/S is contemplating a corporate reorganization involving a redomiciliation to the UK and the creation of a UK-based company,
TORM plc, above TORM A/S
• The purpose of the corporate reorganization is to improve the marketability of the listed Company, to attract a broader and more
diversified investor base and to facilitate a potential dual listing in the US
• The Company believes a new UK holding company structure should assist in this, as the UK legal system, corporate governance
structure and tax regime, in combination, is more familiar and beneficial for TORM’s investor base going forward
• The reorganization will be implemented through an Exchange Offer from TORM plc for all the existing shares of TORM A/S on a 1:1
basis. Holders of TORM A/S warrants will be offered TORM plc warrants on a 1:1 basis
• The reorganization is recommended and supported by a unanimous Board in TORM A/S
Reorganization
with a UK-based
TORM plc above
TORM A/S
Commercial and
governance
setup maintained
with support
from major
shareholder and
Board
Process for the
reorganization
and required next
steps
• TORM’s commercial and technical management activities will continue to be managed out of TORM A/S’ Copenhagen office, while certain
corporate and administrative functions will be transferred to TORM plc and a new UK office. Furthermore, some vessels may be
transferred to TORM plc
• TORM plc’s Articles of Association will in all material aspects mirror TORM A/S’ existing Articles of Association including maintaining
strong minority protection rights. The non-employee-elected members of TORM A/S’ Board will form the TORM plc Board of Directors
together with TORM A/S’ CEO
TORM plc has obtained support from shareholders and warrant holders representing 83% of the shares and 70% of the warrants at the
time of the Annual Report
The Exchange Offer is expected to be published within a short period after the Annual Report followed by an offer acceptance period of
approximately four weeks
Following completion of the Exchange Offer, TORM plc will be listed on Nasdaq Copenhagen
24
Current Structure - Listing of TORM A/S
TORM A/S
Shareholder(s)Shareholder(s)Other
shareholdersOaktree
New Proposed Structure – (dual) Listing of TORM plc
TORM plc (UK)
TORM A/S (DK)
NYSE (US) Nasdaq
Copenhagen (DK)
Nasdaq
Copenhagen (DK)
Contemplated future
primary listing
TORM plc
100%62%38%
Shareholder(s)Shareholder(s)Other
shareholdersOaktree
~62%*~38%*
Share Exchange
Offer
TORM plc will make a Share Exchange Offer to acquire the entire
issued share capital of TORM A/S. Existing TORM A/S
shareholders who tender their shares in TORM A/S will become
shareholders in TORM plc in a 1:1 exchange ratio
TORM plc will be listed on Nasdaq Copenhagen following the
completion of the Exchange Offer
Squeeze-out and
delisting
Provided that the Exchange Offer is accepted by more than 90%
of all outstanding shares and voting rights in TORM A/S on a fully
diluted basis, TORM plc will acquire the remaining shares in
TORM A/S and delist TORM A/S from Nasdaq Copenhagen
Potential US IPO
and dual listing on
NYSE and Nasdaq
Copenhagen
Following the completion of the Exchange Offer, it is
contemplated that TORM plc may also seek to carry out an IPO
(new shares and existing shares) and implement a dual listing on
• New York Stock Exchange ( “NYSE”)
• Nasdaq Copenhagen
The timing of an initial US offering will be determined principally
by market conditions and SEC approval
Note:
* Actual ownership percentage will depend on the achieved support for the Exchange Offer
PROPOSED CORPORATE REORGANIZATION WITH THE AIM TO FACILITATE A POSSIBLE FUTURE DUAL LISTING
APPENDIX
26
FLEET UPDATE
PER 31.12.2015
Please note: TORM has the option to purchase up to six additional vessels within the LR2, LR1 or MR segment with expected delivery in 2018 and 2019
# of vessels
Q3 2015 Changes Q4 2015 Changes 2016 Changes 2017 Changes 2018
Owned vessels
LR2 8 - 8 - 8 1 9 3 12
LR1 7 - 7 - 7 - 7 - 7
MR 42 6 48 3 51 - 51 - 51
Handysize 11 - 11 - 11 - 11 - 11
Tanker Division 68 6 74 3 77 1 78 3 81
Bulk activities 2 -2 0 - 0 - 0 - 0
Total 70 4 74 3 77 1 78 3 81
Charter-in vessels
LR2 2 - 2 - 2 - 2 -2 0
LR1 0 - 0 - 0 - 0 - 0
MR 2 - 2 - 2 -2 0 - 0
Handysize 0 - 0 - 0 - 0 - 0
Tanker Division 4 - 4 - 4 -2 2 -2 0
Bulk activities 1 -1 0 - 0 - 0 - 0
Total 5 -1 4 - 4 -2 2 -2 0
Total fleet 75 3 78 3 81 -1 80 1 81
27
Seafarers: ~2,800
• 1,300 Filipino seafarers
• 1,100 Indian seafarers
• 170 Danish seafarers
• 200 Croatian seafarers
• 30 Polish seafarers
TORM offices: ~270
A world-leading product
tanker company
• 125+ years of history
• A leading product tanker
owner
Listed on Nasdaq
Copenhagen
Key facts Global footprint based on regional power and presence
TORM employees:
Source: TORM
TORM AT A GLANCE
28
Oil product supply chain
Exploration Transportation Refining Transportation Storage/distribution
Crude
oil
Fuel oil Diesel Gas oil
/ Gas-
oline
Kero-
sene /
Jet fuel
Clean
conden-
sate
Naph-
tha
MTBE Veg. oil Biofuel Ethanol
”Dirty products” ”Clean products”
Typical refined oil products carried on TORM’s vessels
PRODUCT TANKERS HAVE COATED TANKS AND HAVE SPECIALLY DESIGNED CARGO SYSTEMS WITH FLEXIBILITY TO TRANSPORT A WIDE RANGE OF DIFFERENT PRODUCTS
29
Jacob Meldgaard
▪ CEO of TORM since April 2010
▪ Previously Executive Vice President of the Danish shipping company NORDEN where he was in charge of the company’s dry cargo division
▪ Prior to that he held various positions with J. Lauritzen and A.P. Møller-Mærsk
▪ More than 20 years of shipping experience
Mads Peter Zacho
▪ Chief Financial Officer
Lars Christensen
▪ Head of Projects
Executive Management
Senior Management
Christian Søgaard-Christensen
▪ Head of Corporate Support
Jesper S. Jensen
▪ Head of Technical Division
MANAGEMENT TEAM WITH AN INTERNATIONAL OUTLOOK AND MANY YEARS OF SHIPPING EXPERIENCE
30
OAKTREE IS THE MAJORITY SHAREHOLDER IN TORM
TORM’s shares are listed on Nasdaq Copenhagen
under the ticker TORM A
Shares
• 63.8m A shares, one B share and one C share
• The B and C shares have certain voting rights
• A Share has a nominal value of DKK/share 15.00
For further company information,
visit TORM at www.torm.com
Share information Ownership structure (31 July 2015*)
31.6%
6.4%
62.0%
Other
DW Partners, LP
OCM Njord Holdings S.à r.l.
* Based on public filings.
31
REPORTED KEY FIGURES
USDm* Q4 2015 2015 2014
Revenue 186 540 180
EBITDA 62 210 41
Profit/(loss) before tax 28 127 13
Balance sheet
Total assets 1,867 1,867 626
Equity 976 976 470
NIBD 612 612 103
Cash and cash equivalents 168 168 38
Cash flow statement
Operating cash flow 77 214 17
Investment cash flow -155 -159 -378
Financing cash flow 77 75 397
Financial related key figures
EBITDA margin 33% 39% 23%
Equity ratio 52% 52% 75%
Return on invested capital (RoIC) 9% 13% 4%
* The financial results for 2015 will reflect Oaktree activities in the period from January 2015 until completion of TORM’s Restruc turing (13 July 2015) and the combined entity from completion of TORM’s Restructuring until 31 December 2015.
32
TORM TANKER SPOT RATES VERSUS INDUSTRY BENCHMARK
Source: Clarksons, Spot earnings: LR2: TC1 (Ras Tanura-> Chiba), LR1: TC5 (Ras Tanura-> Chiba), MR: average basket of Rotterdam->NY, Bombay->Chiba, Mina Al Ahmadi->Rotterdam,
Amsterdam->Lome, Houston->Rio de Janeiro, Singapore->Sidney, Handysize: average basket of Augusta->Lavera, Tuapse->Agioi Theodoroi.
TORM spot vs. industry benchmark Q4 2015 (USD/day)
TORM spot vs. industry benchmark last 12 months (USD/day)
Note: Benchmarks are not one-to-one comparisons as they do not take into account broker commission, armed guards and low sulphur fuel costs.
10,000
40,000
30,000
20,000
50,000
0
Handysize
+17%
+18%
+14%
LR1
+4%
LR2 MR
BenchmarkTORM
40,000
30,000
20,000
10,000
50,000
0
Handysize
+5%-5%
-9%
LR1
+3%
LR2 MR
BenchmarkTORM
33
Owned days
PER 31.12.2015
T/C-in days at
fixed rate
T/C-in days at
floating rate
Total physical
days
Coverage
TORM HAS A SPOT-ORIENTED PROFILE IN A STRONG MARKET
2016 2017 2018 2016 2017 2018
LR2 2,889 2,987 4,231
LR1 2,546 2,531 2,555
MR 18,262 18,491 18,615
Handysize 3,935 4,004 4,015
Tanker Division 27,632 28,012 29,416
LR2 - - - - - -
LR1 - - - - - -
MR 703 286 - 16,153 16,250 -
Handysize - - - - - -
Tanker Division 703 286 - 16,153 16,250 -
LR2 676 729 340
LR1 - - -
MR - - -
Handysize - - -
Tanker Division 676 729 340
LR2 3,565 3,716 4,571 1,317 730 727
LR1 2,546 2,531 2,555 121 - -
MR 18,965 18,777 18,615 850 - -
Handysize 3,935 4,004 4,015 65 - -
Tanker Division 29,011 29,027 29,756 2,354 730 727
LR2 37% 20% 16% 24,427 24,011 24,010
LR1 5% 0% 0% 29,331 - -
MR 4% 0% 0% 21,956 - -
Handysize 2% 0% 0% 19,068 - -
Tanker Division 8% 3% 2% 23,638 24,011 24,010
Covered, %
2016 2017 2018 2016 2017 2018
LR2 2,889 2,987 4,231
LR1 2,546 2,531 2,555
MR 18,262 18,491 18,615
Handysize 3,935 4,004 4,015
Tanker Division 27,632 28,012 29,416
LR2 - - - - - -
LR1 - - - - - -
MR 703 286 - 16,153 16,250 -
Handysize - - - - - -
Tanker Division 703 286 - 16,153 16,250 -
LR2 676 729 340
LR1 - - -
MR - - -
Handysize - - -
Tanker Division 676 729 340
LR2 3,565 3,716 4,571 1,317 730 727
LR1 2,546 2,531 2,555 121 - -
MR 18,965 18,777 18,615 850 - -
Handysize 3,935 4,004 4,015 65 - -
Tanker Division 29,011 29,027 29,756 2,354 730 727
LR2 37% 20% 16% 24,427 24,011 24,010
LR1 5% 0% 0% 29,331 - -
MR 4% 0% 0% 21,956 - -
Handysize 2% 0% 0% 19,068 - -
Tanker Division 8% 3% 2% 23,638 24,011 24,010
Owned days
T/C-in days at fixed rate T/C-in costs, USD/day
Covered days
T/C-in days at floating rate
Total physical days
Covered, % Coverage rates, USD/day
34
Set climate targets:
•20% reduction of CO2 emissions pr. vessel by 2020
(starting point in 2008), in g/ton-km
•25% reduction of CO2 emissions from offices per
employee by 2020
(starting point in 2008), ton/employee
TORM has set and communicated on climate targets
• Danish Shipowners’ AssociationAs part of DSA,TORM is pushing for
international regulation and standards on
e.g. emissions through the International
Maritime Organization
•Maritime Anti-Corruption NetworkTORM is founding member of a global
business network working towards a
maritime industry free of corruption that
enables fair trade
•UN Global CompactTORM became signatory to the
UNGC in 2009 as the first Danish
shipping company
TORM is actively participating in…
Target:
6.4
2015
5.5
2008
8.0-32%
Target:
2.2
2008 2015
2.33.1
-20%
INDUSTRY COOPERATION AND TRANSPARENCY IS KEY TO TORM’S CORPORATE SOCIAL RESPONSIBILITY