Stolt-Nielsen Limited · OSL:SNI

Stolt-Nielsen — Q3 2023 Earnings Presentation

26 slides from Stolt-Nielsen's earnings presentation, Oct 5, 2023

  1. Slide 1: Third-Quarter 2023 Results

    THIRD-QUARTER 2023 RESULTS OCTOBER 5, 2023 1

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements Included in this presentation are various “forward-looking statements”, including statements regarding the intent, opinion, belief or current expectations of the Company or its management with respect to, among other things, (i) goals and strategies, (ii) plans for new dev

  3. Slide 3: Presenters

    Presenters Udo Lange Jens F. Grüner-Hegge Alex Ng Chief Executive Officer Chief Financial Officer Vice President, Corporate Development and Strategy Third-Quarter 2023 Results 3

  4. Slide 4: Agenda | 3Q23 Results

    Agenda | 3Q23 Results 1. CEO Introduction 2. Group Highlights 3. Division Highlights 4. Financial Highlights 5. Closing Remarks Third-Quarter 2023 Results

  5. Slide 5: My Background

    My Background  Born in Landshut, Germany  PhD in Strategy and Organisation of Logistics Providers from Duisburg University, Germany  Roles in consulting and logistics  SVP Performance Management, DHL Global Forwarding  SVP Operations, Lufthansa Sky Chefs  FedEx C-level roles • COO, FedEx Trade

  6. Slide 6: Why Stolt-Nielsen is a Great Fit

    Why Stolt-Nielsen is a Great Fit  Global operations  12 years running global businesses  Strong market positions and financial performance  Eight years running multi-divisions  Logistics and aquaculture portfolio  Passion for logistics  Strong culture and leadership and food businesses  Cult

  7. Slide 7: Stolt-Nielsen is Capitalising on Attractive Markets

    Stolt-Nielsen is Capitalising on Attractive Markets FY22 Robust Financial Performance… …in Ongoing Supportive Markets EBITDA ROCE (1)  Rates at a new, higher equilibrium  Expectation of a firm tanker market $ 715.3m 10.4% into 2024 and beyond EBITDA Margin (%) 25.8%  Steady performance across a b

  8. Slide 8: A Bright Future Ahead

    A Bright Future Ahead Diversified Portfolio (% of Total Assets FY22) (45%) (28%) (13%) (3%) Market Leading Positions #1 (deadweight tonnage) (1) #6 (cbm storage capacity) (2) #1 (tank operators fleet size) (3) #1 (European volumes) (4) Serving Significant $ 380bn $ 111bn End-Markets (global chemical

  9. Slide 9: Committed to Our ESG Ambitions

    Committed to Our ESG Ambitions HEALTH AND SAFETY ENVIRONMENT 2030 2040 2050 Our ambition is to Stolt Tankers Stolt Tank Containers Stolt Sea Farm Stolthaven Terminals Stolt Tankers achieve zero harm  Reduce carbon  50% renewable  Zero waste to  Primary activities,  Run a carbon- across all oper

  10. Slide 10: Group Highlights

    Group Highlights Stolt-Nielsen

  11. Slide 11: 3Q23 SNL Highlights | Positive Performance Across all Divisions

    3Q23 SNL Highlights | Positive Performance Across all Divisions 3Q23 vs. 3Q22 vs Adjusted 2Q23 OPERATING REVENUE EBITDA OPERATING PROFIT $ 694.4m $ 201.2m  $ 127.5m   $ 744.0m (-6.7%) $ 184.4m (+9.1%) $ 111.9m (+13.9%) $ 721.9m (-3.8%) $ 224.6m(1) (-10.4%) $ 155.1m(1) (-17.8%) (2) NET PROFIT FREE

  12. Slide 12: YTD 2023 Performance Drivers

    YTD 2023 Performance Drivers (1) (2) SIR / OPERATING DAY (US$) UTILISATION (%)  +38.2% -0.2%  97.2% 97.0% 29,451 21,318 YTD Aug-22 YTD Aug-23 YTD Aug-22 YTD Aug-23 (3) SHIPMENTS (#) VOLUMES SOLD (MT)  +8.4%  +3.0% 6,544 105,141 6,356 96,954 YTD Aug-22 YTD Aug-23 YTD Aug-22 YTD Aug-23 1.Sailed-in

  13. Slide 13: Market Outlook | Recovery Aided by Favourable Supply-Side Dynamics

    Market Outlook | Recovery Aided by Favourable Supply-Side Dynamics ROBUST DEMAND – SEABORNE CHEMICALS TRADE MR RATES REBOUND – LIMITING SWING TONNAGE 130 50,000 120 Chemicals trade remains robust – 2023 volumes in line with 2022 levels(1) Average MR Earnings ($/Day) 40,000 110 May–Jul May–Jul 30,000

  14. Slide 14: Segment Highlights

    Segment Highlights Stolt-Nielsen S|

  15. Slide 15: Stolt Tankers | Another Strong Quarter

    Stolt Tankers | Another Strong Quarter 3Q23 vs. 3Q22 vs. 2Q23 OPERATING REVENUE EBITDA HIGHLIGHTS $ 422.3m  $ 124.3m   Lower revenues as spot rates came off recent highs • Spot rates declined in Q3 vs Q2 but remained above COA rates $ 404.7m (+4.3%) $ 101.2m (+22.9%) • Volumes increased by 3.9% $

  16. Slide 16: SIR / Operating Day | Rates Stabilising Above Historical Levels

    SIR / Operating Day | Rates Stabilising Above Historical Levels DEEPSEA CHEMICAL INDEX* SIR / OPERATING DAY 300.0 $35,000 4Q23 Indicative 1-3% 250.0 Increase $30,000 $28,429 200.0 $25,000 +48.6%2 150.0 $20,000 100.0 5-Yr Average ($19,817) $15,000 50.0 0.0 $10,000 Jan.20 May.20 Sep.20 Jan.21 May.21 S

  17. Slide 17: Stolthaven Terminals | Steady Improvement

    Stolthaven Terminals | Steady Improvement 3Q23 vs. 3Q22 vs. 2Q23 (1) OPERATING REVENUE EBITDA (US$ millions) UTILISATION $ 74.7m  -3.9% +10.5% -0.2% -0.2% 126.3 97.0% 96.8% 97.2% 97.0% $ 70.8m (+5.5%) 43.7 42.0 114.3 $ 74.3m (+0.5%) 2Q23 3Q23 YTD Aug-22 YTD Aug-23 2Q23 3Q23 YTD Aug-22 YTD Aug-23 OP

  18. Slide 18: Stolt Tank Containers | More Shipments, but at Lower Rates

    Stolt Tank Containers | More Shipments, but at Lower Rates 3Q23 vs. 3Q22 vs. Adjusted 2Q23(1) OPERATING REVENUE EBITDA GROSS PROFIT PER SHIPMENT2 (US$) -11% $ 166.4m  $ 36.8m  -28% 1,826 $ 242.9m (-31.5%) $ 53.8m (-31.6%) 1,599 1,613 $ 189.3m (-12.1%) $ 48.9m1 (-24.7%) 5-Yr Avg ($1,180) 1,150 2Q23

  19. Slide 19: Stolt Sea Farm | Strong Increase in Sales

    Stolt Sea Farm | Strong Increase in Sales 3Q23 vs. 3Q22 vs. 2Q23 (1) OPERATING REVENUE EBITDA (Excl. FV Adj.) VOLUMES SOLD (MT) $ 31.0m  $ 9.1m  +6.2% +3.0% 2,346 6,544 $ 25.3m (+22.5%) $ 7.8m (+16.6%) $ 27.6m (+12.3%) $ 6.8m (+33.8%) 2,206 6,356 2Q23 3Q23 YTD Aug-22 YTD 3Q23 OPERATING PROFIT TURB

  20. Slide 20: Financial Highlights

    Financial Highlights 20

  21. Slide 21: Summary Income Statement

    Summary Income Statement Quarter HIGHLIGHTS Figures in USD million 3Q23 2Q23 3Q22  Revenue decreased mainly due to lower rates in Stolt Tank Containers and softer spot rates in Stolt Tankers Operating Revenue $694.4 $721.9 $744.0 Operating Expenses (438.4) (445.8) (504.8)  Operating expenses decre

  22. Slide 22: Financials | Capital Expenditures

    Financials | Capital Expenditures Actuals Actuals Actuals Remaining Forecast Figures in USD millions 1Q23 2Q23 3Q23 2023 2024 Stolt Tankers 7 55 8 20 12 Stolthaven Terminals 17 19 16 33 173 Stolt Tank Containers 16 4 8 49 14 Stolt Sea Farm 7 2 4 10 55 SNL Corporate & Other - 2 - 19 - Total $47 $82 $

  23. Slide 23: Financials | SNL Cash Flow and Liquidity Position

    Financials | SNL Cash Flow and Liquidity Position Figures in USD million 3Q23 2Q23 3Q22 HIGHLIGHTS Cash generated by operating activities $249.9 $207.7 $205.4  Cash from operating activities increased due to improved Interest Paid (30.3) (24.2) (24.8) performance and a lower decrease in working cap

  24. Slide 24: Financial KPIs with Significant Headroom

    Financial KPIs with Significant Headroom DEBT TO TANGIBLE NET WORTH (MAXIMUM 2.25:1.00) EBITDA TO INTEREST EXPENSE (LTM) (MINIMUM 2.00:1.00) 3,500 1.40 900 6.50 1.3 $770 5.9 5.7 1.2 800 6.00 3,000 1.20 $715 5.3 5.5 $690 1.1 1.1 $682 $673 1.0 700 5.1 5.50 2,500 $2,346 1.00 $2,190 $2,135 600 $2,074 $2

  25. Slide 25: Concluding Remarks

    Concluding Remarks STOLT TANKERS IPO DELIVERING VALUE FINANCIAL STRENGTH  Positive tanker  Robust outlook, strong  $2.25/sh paid for 2022 performance and strategies and supportive fundamentals outstanding leadership  Attractive diversified  Unique position across portfolio  Soft IPO Market liq

  26. Slide 26: Isen

    Isen 1e Stolt-N

Stolt-Nielsen — Q3 2023 Earnings Presentation on 6ix