Presentation of f Q4 2010 results Safe Harbour Statement Matters - - PowerPoint PPT Presentation

Presentation of f Q4 2010 results

Safe Harbour Statement

Matters discussed in this presentation may constitute forward-looking statemen Such statements reflect TORM's current expectations and are subject to certai TORM's business. To understand these risks and uncertainties, please read TORM's announcem Commission. The presentation may include statements and illustrations concerning risks, pla performance, and underlying assumptions and other statements, which are oth statements in this presentation are based upon various assumptions, many of including without limitation, TORM's examination of historical operating trends, third parties. As many of these factors are subject to significant uncertainties a and are beyond our control, TORM makes no warranties or representations ab content of this presentation. ents. tain risks and uncertainties that could negatively impact ments and filings with The US Securities and Exchange plans, objectives, goals, strategies, future events or ther than statements of historical facts. The forward-looking f which are based, in turn, upon further assumptions, s, data contained in our records and other data available from and contingencies which are difficult or impossible to predict about accuracy, sequence, timeliness or completeness of the 2

Highlights Q4 2010

• Q4 loss before tax of USD 37

USD 16m vessel sale adjustm

• Full year 2010 loss before tax

and vessel sale adjustment, i

• Continued difficult trading con
• Only periodic arbitrage oppor

Result Tanker

• Only periodic arbitrage oppor
• Weaker rates following Austra
• Orderbook concern
• TORM forecasts a loss before
• Maintain long-term positive vi

Dry Bulk Forecast 37m, before USD 35m impairment charge and tment ax of USD 85m, before impairment charge , in line with latest forecast

• nditions - ample supply
• rtunities

Highlights Finance Tanker market Dry bulk market Summary

3

• rtunities

tralian flooding

• re tax of USD 100 – 125 million for 2011

view on the product tank segment

3

Financial highlights Q4 2010

Financials

USD million Q4 2010 Q4 2009 2010 P&L Gross profit 33 52 180 Sale of vessels

• 16

2 EBITDA

• 5

32 97 Impairment loss on FR8 stake

• 35
• 20
• 35

Profit before tax

• 88
• 30
• 136

Profit before tax excl. impairment charge

• 53
• 10
• 101

Profit before tax excl. impairment charge

• 53
• 10
• 101

Balance Equity 1,115 1,247 1,115 NIBD 1,875 1,683 1,875 Cash and cash equivalents 120 122 120 Cash flow statement Operating cash flow

• 43

21

• 1

Investment cash flow

• 93
• 21
• 187

Q4 2010 loss before tax of USD 88m, and USD 37m excl. impairment loss

• n FR8 stake and vessel sale

adjustment, in line with latest expectations Q4 2010 EBITDA of USD -5m,

Highlights Finance Tanker market Dry bulk market Summary

2009 243 33 203

• 20
• 19

1

Q4 2010 EBITDA of USD -5m, compared to USD 32m in Q4 2009 primarily due to lower coverage in Q4 2010 relative to Q4 2009 and USD - 16m from vessel sale adjustment Development in NIBD primarily driven by investments in the newbuilding programme

4

1 1,247 1,683 122 116

• 199

Tank Build on strength as global leader to benefit from a market recovery Consistently outperforming spot market benchmarks Bulk Expand profitably in all m conditions Ensuring a positive prof under all market conditio

Customer S Resilience

TORM’s strategy – “Changing Trim”

market benchmarks under all market conditio Two long-term MR vessels T/C- in Reorganisation of Technical division Transformation of pool set-up to strategic partnerships Five year COA with Ch Resources Holdings C Ltd. Three long-term Pana eco design) T/C-in, tw purchase options One long-term Handym A number of short term deals in the Bulker seg Development of Customer value proposition Establishment of office in Brasil

Note: Includes activities up to March 2010

ll markets

• fit margin

itions Ship owning and S&P Leverage relations & experience to become a leading asset player Creating value through optionality

Sophistication Leadership

Highlights Finance Tanker market Dry bulk market Summary

itions

5

Sale of two Kamsarmaxes in Q4 2010 for a total consideration of USD 90m Sale of one old MR vessel for a consideration of USD 12m China Nickel Company amax (new two with ymax T/C-in rm T/C-in egment

10 20 30 40 50 60 70 80 90 jan feb mar apr apr may june july aug sep

• ct

nov dec

LR2 (TC1)

2009 2010 2011

The product tankers freight rates

40 50 60 70

LR1 (TC5)

Freight rates (MR, LR1 and LR2) in USDt/day

Source: Clarksons, until 4. March 2011

10 20 30 40 jan feb mar apr apr may june july aug sep

• ct

nov dec 2009 2010 2011 10 20 30 40 50 jan feb mar apr apr may june july aug sep

• ct

nov dec

MR (TC2)

2005 - 2009 range 2009 2010 2011

TORM continue to outperform the benchmarks

• Q4: LR2 +48%, LR1 +38% and MR +52%
• 2010: LR2 +14%, LR1 +22% and MR +46%

Q4 2010 positive impacts:

• Support to the LR from west to east Naphtha

arbitrage in November and December

• Transatlantic MR strength from Gasoline arbitrage
• pportunity
• Chinese diesel demand
• Cold weather stimulating heating oil demand

Finance Tanker market Dry bulk market Highlights Summary

6

• Cold weather stimulating heating oil demand

Q4 2010 negative impacts:

• High influx of tonnage, 8% net fleet growth for

2010

• Declining US gasoline import
• Continued low level of floating storage
• Weak dirty market

Into Q1 2011

• Ample tonnage
• Non fundamental demand from oil price volatility

LR2 vessel size (Long Range): Aframax tanker 80-120,000 dwt LR1 vessel size (Long Range): Panamax tanker 60-80,000 dwt MR vessel size (Medium Range):Handymax tanker 30-60,000 dwt

Flourishing trading routes as dislocatio

• 400
• 200

200 400 600 2009 2010 2011 2012 2013 2014 2015

USA

200 400 600 800 1000 2009 2010 2011 2012 20

Middle East

• 300
• 250
• 200
• 150
• 100
• 50

2009 2010 2011 2012 2013 2014 20

Europe Net refinery capacity 1,000 barrels 100 200 300 400 500 2009 2010 2011 2012 2013 2014 2015

Brazil

Source: JBC Energy

• New refineries in the Middle East and Ind

driven by cost advantages

• Increasing US product exports
• South America relying on import to satisfy
• China remains a positive swingfactor

ion continues

200 400 600 800 1000 2009 2010 2011 2012 2013 2014 2015

China

• 300
• 250
• 200
• 150
• 100
• 50

2009 2010 2011 2012 2013 2014 2015

Japan

2013 2014 2015 200 300 400

India

2015

Finance Tanker market Dry bulk market Highlights Summary

100 2009 2010 2011 2012 2013 2014 2015

ndia are producing at high utilization rates sfy growing demand

7

Supply continues to be affected by sign

Slippage is continuing…

Source: Inge Steensland and TORM

51% 54% 27%

20 40 60 80 100 120 Q1 Q2 Q3 Q4

• No. of vessels

Newbuildings (LR2, LR1, MR & SR)

Expected decliveries Actual deliveries

42%

10% 8% 5% 4% 4%

0% 2% 4% 6% 8% 10% 12%

• 50

50 100 150 200 250 300 2009 2010 2011 2012 2013 LR2 LR1 MR SR New ordering est. Total by MR equivalent

…and net fleet growth is declining

Note: Net fleet growth: Gross order book adjusted for scrapping, slippage, phase out of single hulls and new ordering Source: Inge Steensland and TORM

No % yoy

nificant slippage

Significant slippage continues

• Q4 2010, slippage of 42%
• In 2010 delivery of 174 vessels, 44% less

than planned

• 2010 net fleet growth of 8%

Finance Tanker market Dry bulk market Highlights Summary

8

Orderbook stands at 19% of the fleet on water Slippage expected to continue

• 30% in 2011 and 2012
• No slippage from 2013 as there is free yard capacity

compared to orders this year TORM estimates 10% cancellations

• Limited cancellations

Assumed new ordering of 40 MR (2013 delivery) Total net growth in the fleet declines from 8% in 2010 to

• app. 4% in 2013

Product Tanker market - demand will outgrow supply from 2011 t

Demand and supply development (2011 - 2013)

206 403 54 68 75 258 72 74 40 250 500 750 Refinery and transportation Growth in oil demand Increasing port days bitrage/cross e/ triangulation Total demand increase Swing factors Total supply increase Phase out & Scrapping LR into dirty market Cancellations Number of vessels*

Demand

*All effects are recalculated into MR equivalents – to enable comparision based on their volum Source: Torm research

• Refinery expansions in the Middle East and

India & changes in transport patterns

• Increased oil demand
• Increasing port days due to increased

activity/bottlenecks

• Arbitrage
• Improving US exports
• LR into dirty
• Some LR1 vesse

phase outs in cr

• 30% of LR2 vesse
• Phase-out of sing

tonnage

• Additional new or

Demand primarily driven by Supply primar

R tr Inc Arbit trade/ T S C

1 to 2013

Swing factors:

• Order book delays
• Delays in refineries
• Floating storage
• Slow steaming
• Changes in transport

patterns

• Embargoes & strikes
• Blockage of water ways

and ports

• Disruptions to refinery

production

Finance Tanker market Dry bulk market Highlights Summary

40 404 New ordering der book gross

Supply

production

• Hurricanes

me relative to MR

9

ssels are replacing Panamax crude essels are trading in the crude ngle hulls and scrapping of old

• rdering of 2013 deliveries

arily driven by

N Orde

10 20 30 40 50 60 Jan/08 Jul/08 Jan/09 Jul/09 Jan/10 Jul/10 Jan/11

MR newbuilding and second-hand prices

Product tanker vessel prices stable – bu

USDm

Vessel price development

MR DWT Products Tanker Newbuilding Prices MR 5 year old second-hand prices

USDm USDt/day

*Source: Clarksons 10 20 30 40 50 60 5 10 15 20 25 30 Jan/08 Jul/08 Jan/09 Jul/09 Jan/10 Jul/10 Jan/11

MR - 1 year T/C and second-hand prices

1 Year Time charter Rate 47-48,000 Modern Products Tanker MR 5 year old second-hand prices (right axis)

ut limited S&P activity

Stable and second-hand prices in Q4 2010 S&P activity continued in Q4 2010, but limited concluded deals.

• Increased spread willing buyer / seller
• TORM have in Q1, in line with strategy of
• perating a young fleet, sold Faja De Oro

(MR, 1995 build) for USD 12m (USD 6m loss), delivered in Q1 2011

Finance Tanker market Dry bulk market Highlights Summary

10

T/C rates and second-hand prices are relatively well correlated

10 20 30 40 50 60 70 80 90 100 jan feb mar apr may june july sep

• ct

nov dec

Panamax

2005 - 2009 range 2009 2010 2011

Dry bulk market

Freight rate development in USDt/day

Source: Clarksons

Vessel price development

20 40 60 80 100 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11

Panamax newbuilding and second-hand prices

75-77.000 DWT Panamax Bulkcarrier Newbuilding Prices Panamax 76K bulk carrier 5 Year Old Secondhand Prices

USDm

Dry bulk rates have decreased in Q4 2010.

• High influx of new tonnage
• Infrastructure disruptions in Australia

TORM relatively unaffected by rate volatility

• At the end of September 2010, TORM had

covered 87% of the remaining earning days in 2010

Finance Tanker market Dry bulk market Highlights Summary

11

Continued high S&P activity Decreasing resale and second-hand prices Continued new ordering in Q4 in China, though less volume than in Q3 TORM sold two Kamsarmax newbuildings (Q1 2011 delivery) in Q4 2010 at USD 45m a piece

Dry bulk market dependant on China an

Chinese coal and ore import

mio tons

10 20 30 40 50 60 70 80 2005 2006 2007 2008 2009 2010 Iron ore & concentrate Coal

2 4 6 8 10 12 14 16

• 20

20 40 60 80 100 2009 2010 2011 2012 2013 Deletions Deliveries Increase in total fleet (right axis) Source: EcoWin and Drewry mdwt % y-o-y

Dry bulk orderbook

nd high supply

China the dominant importer of iron ore and coal. Produce 50% of the world steel production Strong import in December 2010; 58m tons Iron ore; +70% from Dec 2008 17m tons coal; +550% from Dec 2008

Finance Tanker market Dry bulk market Highlights Summary

The total dry bulk fleet increased by 15% in 2010

• Expected to grow by 14% in 2011.

Lower orderbook in TORMs core fleet segment For dry bulk in total - constitute 50% of the fleet For Panamax - constitute 21% of fleet Cancellation and slippage is expected to continue

• Cancellation of 15-20%
• Slippage of 30-40%

12

Continued efficiency focus

Development in OPEX and admin expenses

3.000 4.000 5.000 6.000 7.000 8.000 9.000 LR2 LR1 MR SR anamax Development in operating cost per day (USD/day)

29% 11% 19% 26% 20%

Panam

2008 2009 2010

10 20 30 40 50 60 70 80 90 100 2008 2009 2010 2010 excl. one offs

Annual administrative expenses USD m

26%

The “Greater Efficiency Power” programme launched by the end of 2008 delivered total annual savings of app. USD 50m going forward as planned:

• Average Opex reduction of approximately

20%

• Reduced administrative expenses of 26%

Finance Tanker market Dry bulk market Highlights Summary

13

New efficiency savings of USD 10m from

• ptimization of processes and procedures

identified:

• Standardization and best practice sharing

between vessels

• Strategic procurement – spare parts
• Reduction in port expenses
• Bunker procurement
• Process efficiency

TORMs financial position

• Total cash and unused credit facilities USD

351m as per 31 December 2010

• Remaining capex of USD 258m relating to the

newbuilding program as per 31 December 2010

• In Q4 TORM sold two Kamsarmax newbuildings

(delivery in Q1 2011) for a total consideration of USD 90m Status

165

• 50

100 150 200 250 300 350 400 450 500 2011 USDm 213 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2011 USDm

• In Q1 2011 TORM has sold one MR vessel

(delivery in Q1 2011) for a total consideration of USD 12m

• Net debt* USD 1,875m by the end of Q4 2010

compared to USD 1,738m by the end of Q3 2010

• TORM has no loan to value covenants
• TORM’s main debt covenants:
• Minimum book equity ratio of 25%
• Minimum book value of equity of DKK

1.25bn (app. USD 250m)

• No less than USD 60m in liquidity

2011

* Including financial leases

Finance Tanker market Dry bulk market Highlights Summary

102 Vessel sales 85 9 258 351 2012 2013 2014 Total CAPEX Cash and Remaining capex and liquidity 210 836 194 541 1,995 2012 2013 2014 2015 and after Total debt* Repayment profile 14 2012 2013 2014 Total CAPEX Cash and unused credit facilities

TORMs forecast for 2011

2011 Guidance Sensitivity – change in profit with change in freight rates

• TORM forecasts a loss before tax
• Considerable uncertainty as only

end 2010 (over 30,000 days are u

USDm Segment

• 2,000
• 1,0

Tankers

• 59
• Change in fre

with change in freight rates Coverage (% and USD/day)

16% 3 73% 0% 20% 40% 60% 80% 2011

Tanker division

16,103 16,896 17,

Bulk

• 3

Total

• 62
• ax of USD 100 – 125 m for 2011

ly 24% of the earning days are covered by uncovered)

Finance Tanker market Dry bulk market Highlights Summary

,000 1,000 2,000

• 29

29 59 reight rates (USD/day) 15

3% 1% 18% 10% 2012 2013

Bulk division

7,272 18,794 15,690 17,000

• 2

2 3

• 31

31 62

Appen ndix

16

Introduction to TORM

Global footprint b Strategy and key facts

A world leading product tanker company

• Among leading owners in size
• 120 years of history

Strategy

• TORM is one of the world’s leading carriers of refined
• il products as well as a significant player in the dry

bulk market. The Company runs a fleet of modern vessels in cooperation with other respected shipping companies sharing TORM’s commitment to safety, environmental responsibility and customer service Large and modern fleet (31/12-2010)

• 71.5 owned vessels with an avg. age of 6 years
• 69.5 product tankers
• 2 dry bulkers
• 38 vessels on longer T/C-in

:

Offices – app

170 in Cope 20 in Singap 20 in Manila 80 in Mumb 10 in USA ( TBA Brasil (

• 38 vessels on longer T/C-in (12 months or more at entering):
• 25 product tankers
• 13 dry bulkers
• Pools/com mngt. 25 product tankers
• Orderbook of 8 newbuildings (fully financed)
• 6 product tankers (MR tankers)
• 2 bulk carriers (Kamsarmax)

Listings

• NASDAQ OMX Copenhagen & NASDAQ in New York

Market cap

• ~USD 500m

Key financials

USD million 2010 2009 2008 2007 Revenue 856 862 1,184 774 EBITDA 97 203 572 288 Net income

• 135
• 17

361 792 Equity 1,115 1,247 1,279 1,081 NIBD 1,875 1,683 1,550 1,548

t based on regional power and presence

Company facts

Seafarers – app. 2,900:

350 Danish seafarers 100 Croatian/Italian seafarers 1,400 Indian seafarers 1,050 Philippine seafarers

• pp. 300:

penhagen apore ila bai (Stamford) il (Rio de Janerio) 17

Large and modern fleet (as per 31 Decem

On water 2011 2012 Owned Product tankers LR2 13 LR1 8 MR 38 4 2 SR 11 Total product tankers 70 4 2 Bulk Handymax

• Panamax

2

• 1

Total bulk 2

• 1

TC in (contracts above 12 months) Product tankers LR2

• LR1

16 2

• MR

9 1

• Newbuildings / D

MR 9 1

• SR
• Total product tankers

25 3

• Bulk

Handymax 1

• Panamax

12 3 2 Total bulk 13 3 2 Owned and TC in Product tankers LR2 13

• LR1

24 2

• MR

47 5 2 SR 11

• Total product tankers

95 7 2 Bulk Handymax 1

• Panamax

14 3 3 Total bulk 15 3 3 Pools/Commercial managment Product tankers 25

ember 2010)

Company facts Total 2013 After 2013 13 8

• 44

11

• 76
• 1
• 4

1

• 4
• 18
• 10

Deliveries

18

• 10
• 28
• 1

1 1 19 1 1 20

• 13
• 26
• 54
• 11
• 104
• 1

2 1 23 2 1 24

Detailed key figures overview

Key figures overview

USD million 2010 2009 Revenue 856 862 EBITDA 97 203 Net income

• 135
• 17

Balance Total assets 3,286 3,227 Long term assets 2,984 2,944 Equity 1,115 1,247 NIBD 1,875 1,683 Cash and cash equivalents 120 122 Cash flow statement Operating cash flow

• 1

116 Investment cash flow

• 187
• 199

Financing cash flow 186 37 Financial related key figures EBITDA margin 11% 24% Equity ratio 34% 39% Return on invested capital (ROIC)

• 3%

2%

Finance

2008 2007 2006 2005 1,184 774 604 586 572 288 301 351 361 792 235 299 3,317 2,959 2,089 1,810 2,913 2,703 1,970 1,528 1,279 1,081 1,281 905 1,550 1,548 663 632 168 105 32 157

19

385 188 232 261

• 262
• 357
• 118
• 473
• 59

242

• 239

303 48% 37% 50% 60% 39% 37% 61% 50% 16% 10% 20% 34%

Earning days, TC cost and coverage for

Earning days, TC cost and coverage

2011 2012 2013 2011 Ow ned days LR2 4.679 4.732 4.719 LR1 2.543 2.550 2.543 MR 14.324 15.240 15.613 SR 3.951 4.004 3.993 Tanker division 25.497 26.526 26.868 Panamax 728 769 1.423 Handymax

• Bulk division

728 769 1.423 Total 26.225 27.295 28.291 T/C in days T/C LR2

• LR1

6.042 4.819 2.978 21.496 MR 3.455 3.092 2.849 16.740 SR

• Tanker division

9.497 7.911 5.827 19.766 Panamax 4.344 4.340 4.142 15.436 Handymax 742 694 363 16.756 Bulk division 5.086 5.034 4.505 15.629 Total 14.583 12.945 10.332 18.323 Total physical days Total physical days LR2 4.679 4.732 4.719 767 LR1 8.585 7.369 5.521 1.241 MR 17.779 18.332 18.462 2.543 SR 3.951 4.004 3.993 1.063 Tanker division 34.994 34.437 32.695 5.614 Panamax 5.072 5.109 5.565 3.045 Handymax 742 694 363 1.200 Bulk division 5.814 5.803 5.928 4.245 Total 40.808 40.240 38.623 9.859 Cov LR2 16% 3% 0% 22.961 LR1 14% 7% 7% 16.652 MR 14% 2% 0% 14.420 SR 27% 1% 0% 14.540 Tanker division 16% 3% 1% 16.103 Panamax 60% 8% 0% 16.934 Handymax 162% 87% 167% 16.801 Bulk division 73% 18% 10% 16.896 Total 24% 5% 3% 16.444 Fair value of freight rate contracts that are mark-to-market in the income statement (USD m): Contracts not included above 0,0 Contracts included above

• 0,2

Notes Covered % Actual no of days can vary from projected no of days primarily due to vessel sales and delays of vessel deliveries. T/C extra payments from profit split arrangements.

r 2011, 2012 and 2013

At 31 December 2010, TORM had covered 16% of the earning days for 2011 in the Tanker Division at USD 16,103/day and 73% of the earning days in the Bulk Division at USD 16,896/day

Finance

2012 2013 /C in costs (USD/day)

• 21.909

23.882 16.165 15.928

• 19.664

19.993 15.894 16.200 16.859 15.995 16.027 16.184 18.250 18.332 Covered days

20

Covered days 130

• 532

365 403

• 40
• 1.106

365 430

• 606

606 1.036 606 2.142 971

• verage rates (USD/day)

22.962

• 17.495

15.690 15.353

• 15.112
• 17.272

15.690 21.322

• 17.000

17.000 18.794 17.000 18.008 16.508 C in costs do no include potential

3,000 5,000 7,000 9,000 11,000 13,000 15,000 17,000 LR2 LR1 MR TORM spot versus benchmark Q42010 (USD/day) TORM spot Benchmark

48% 38% 52%

Achieved spot rates

Financials

TORM spot Benchmark *Benchmarks are based on spot earnings from Clarksons:

• LR2: TC1 (Ras Tanura-> Chiba), LR1: TC5 (Ras Tanura-> Chiba) and MR: Avg. of TC2 (Rotterda

3,000 5,000 7,000 9,000 11,000 13,000 15,000 17,000 19,000 LR2 LR1 MR TORM spot versus benchmark last 12 months (USD/day) TORM spot Benchmark

14% 22% 46%

Achieved spot rates exceed benchmarks

• Large and high quality fleet
• Strong worldwide customer base
• Cooperation on key functions
• Demonstrating organisational strengths

Finance

In Q4 outperformance across segments

• Following Q3 below benchmark on LR2 and LR1

dam->NY), TC4 (Singapore-> Chiba) and Curacao->NY

21

% out of total fixtures (last quarter) with major cargo group North Africa Italy & France 14% (11%) North America Trading USA Europe 4% (6%) (Diesel)

Major trading routes in Q4 2010

(Crude Oil) Europe USA 3% (5%) (Unl. Gasoline) Europe Nigeria & other 3% (5%) (Unl. Gasoline) Intr (Ga North America Trading 7% (9%) (Fuel oil) (Diesel) South America world 3% (2%) (Vegoils) Saudi Arabia, Kuwait & UAE Taiwan, South Korea & Japan

Tanker market

Taiwan, South Korea & Japan 15% (14%) (Naphtha) Intra-Asia Trading 9% (7%) (Gasoil/fuel oil) tra-AG trading 3% (6%) asoil/fuel oil)

Source: Torm

22

Executive management Jacob Meldgaard

• CEO of TORM since April 2010
• Previously Executive Vice President of Danish shippi

where he was in charge of the company’s dry cargo d

• Prior to that he held various positions with J. Lauritze
• More than 20 years of shipping experience

Roland M. Andersen

• CFO of TORM since May 2008
• Previously CFO of Danish mobile and broadband ope

that CFO of private-equity-owned Cybercity

• Prior to that he held various positions with A.P. Mølle

Strong management team in place

• Prior to that he held various positions with A.P. Mølle

CFO for A.P. Møller-Mærsk Singapore

• More than 10 years of shipping experience

Tina Revsbech

• Head of Tanker Division

Alex Christiansen

• Head of Bulk Division

Claus U. Jensen

• Head of Technical Division

Jesp

• Re

Am Jan N

• Re

Asi Chris

• He

Senior management ping company NORDEN

• division

zen and A.P. Møller-Mærsk

Management with

a international

• utlook and many

years of shipping experience perator Sonofon and prior to ler-Mærsk, the latest one as

Company facts

ler-Mærsk, the latest one as per Bo Hansen egional Managing Director mericas Nørgaard Lauridsen egional Managing Director sia-Pacific istian Riber ead of Human Resources

Organization

demonstrated strength and effectiveness during the recent transition period

23

O

The TORM share

Listings

• On NASDAQ OMX Copenhagen, ticker TORM
• ADR program on NASDAQ,(USA) ticker “TRMD”
• Market cap USD ~500m (1. march 2011)

Shares

• One class of shares, each carrying one vote
• Share capital of 72.8m shares of DKK 5 each

Investor relations contact Sune S. Mikkelsen The share Sune S. Mikkelsen Tuborg Havnevej 18 2900 Hellerup, Denmark Phone (+45) 3917 9343 E-mail: ssm@torm.com For futher company information visit TORM at www.torm.com 32.2% 33.6% Ownership structure (31 December 2010)

Company facts

20.0% 6.3% 4.8% 3.1% Beltest Shipping Company Ltd. (Cyprus) Menfield Navigation Company Limited (Cyprus) A/S Dampskibsselskabet TORMs Understøttelsesfond Own shares ADR Other 24

24

Focus on environment

Corporate Social Responsibility

..T

• Increasing political focus on

environmental regulation globally and regionally

• TORM as part of the Shipowners

association is pushing for regulation in the International Maritime Organisation, which works to set standards for the sector

• TORM became signatory to the UN

CS

• C

e to e

• S

st P a th

• TORM became signatory to the UN

Global Compact in 2009 as the 1st Danish shipping company

• TORM regards high environmental

standards as a business opportunity and an integral part of risk management (e.g. controlling number of incidents and being ahead of legislation)

• TORM founding member of the World

Ocean Council, an organisation that works for sustainable use of the Ocean across sectors

• TORM participates in the Carbon

Disclosure Project (CDP) th

• Se
• R

2

• R

p TO 2

• A

.TORM has

Company facts

SR integrated in ‘Changing Trim’ strategy : Customers - bringing the customer in focus: engaging our customers in dialogue about CSR to make sure we perform beyond their expectations Sophistication – an accelerated approach to structure and processes: defining CSR Key Performance Indicators (CO2 emissions, safety and facilitation payment) and following up through performance dialogue, is a sophistication

25

25

through performance dialogue, is a sophistication

• f our CSR work

et climate targets: Reduction of CO2 emissions pr. vessel by 20% in 2020 compared to 2008 Reduction of CO2 emissions from offices by 25%

• pr. employee in 2020 compared to 2008

ORM published its 2nd CSR Report in March 2011 Available on www.torm.com/csr

2