Presentation of Q2 2009 results 1 Highlights Profit before tax for - - PowerPoint PPT Presentation

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Presentation of Q2 2009 results

Highlights

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Results Greater Efficiency Power Tanker Division Bulk Division

• Profit before tax for the first six months of 2009 was USD 7 m and lower than expected
• A loss of USD 33 m was posted for the second quarter. The result was affected by lower

freight rates and negative mark-to-market non-cash effects of USD 25 m

• Global oil consumption decreased more than expected which lead to lower demand for

transportation of refined oil products

• A historically high number of newbuildings came into the market
• Fuel costs increased significantly during the quarter both in absolute terms and relative to the

crude oil

• Freight rates were higher than expected driven by increased Chinese demand for iron ore and

coal

• TORM’s efficiency programme is almost fully implemented
• In Q2, TORM realised reductions of 10% onaverage on OPEX/day and still aim to realise total

reductions of 15-20% compared to 2008

• Savings of USD 40-60 m will be achieved from 2010

Guidance for full year

• Break-even result assuming no further vessel sales

Financial position

• Cash and unused credit facilities of app. USD 400 m

Vessel values

• Continued pressure on tanker vessel values ,but the market remains very illiquid and there are

no transactions with “willing seller - willing buyer”

10 20 30 40 50 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09

MR1 spot rates and 1 year T/C rates

MR spot rates MR 1 year T/C rates

USDt

10 20 30 40 50 60 70 80 90 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09

LR1 and LR2 spot rates and 1 year T/C rates

LR1 spot rates LR1 1 year T/C rates LR2 spot rates LR2 1 year T/C rates

USDt

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Tanker market was very depressed in the second quarter

Freight rates (MR and LR’s) TORM’s Tanker Division had an EBITDA of USD 19 m in the second quarter of 2009 Relative to the second quarter of 2008, freight rates realized by TORM were 51% lower for the LR2 segment, 32% lower for the LR1 segment and 34% lower for the MR segment, respectively Low demand for tonnage, and at the same time a large number of newbuildings came into the market Main positive factors:

• Arbitrage on gasoline from Europe to

the Middle East and arbitrage on middle distillates from the Far East to Europe

• Floating storage (LR1 and LR2)
• Slow steaming
• Increased naphtha demand in the Far

East (LR1 and LR2) Main negative factors:

• Decline in global oil demand
• Higher bunker costs
• Declining number of port days
• Limited backhauls from the US to

Europe (MR)

• A large number of newbuildings came

into the market

Company facts Finance Strategy Tank market Dry bulk market

*Source: Clarksons

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 2004 2005 2006 2007 2008 2009

Port days as percentage of total days

83 85 87 89 Aug/08 Oct/08 Dec/08 Feb/09 Apr/09 Jun/09 2009 World Oil Demand est.* (m bpd)

The depressed market was a result of a number of negative factors

Oil demand decreased more than expected

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Company facts Finance Strategy Tank market Dry bulk market

Less transport of products also reduced port days

*Consensus is average iof IEA, EIA and OPEC **Source TORM research

Orderbook for 2009 is all time high Fuel costs almost doubled in first half of 2009

• 50

50 100 150 200 250 300 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

• No. of vessels

Product tankers by year of construction

LR2 LR1 MR

0% 50% 100% 150% 200% 250% 300% 350% 400% 450%

4000 5000 6000 7000 8000 9000 10000 11000 12000 Bunker fuel costs Fuel costs relative to MR rates

Bunker fuel price USD/day

• 20

40 60 80 100 120 140 MR LR1 LR2 Total

• No. of vessels

Phase out (of single hulls) 2009-2011

Actual Converted to standard MRs

But the long term fundamentals are still attractive

A number of factors support long term fundamentals

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Company facts Finance Strategy Tank market Dry bulk market

*IEA

83 84 85 86 87 2006 2007 2008 2009 2010 World Oil Demand (m bpd)*

• Oil demand expected to rebound in 2010
• Regional product imbalances is expected to increase in short and medium

term

• New refineries cost advantage expected to pressure older refineries out of

the market

• Current market conditions increases the possibility of cancellation of new

buildings and consolidation of the market

• Scrapping of single hulls likely to be accelerated
• No terminal expansions and this will increase the number of waiting days

when demand rebounds

• Slow steaming will continue in periods with high bunker prices
• Vessels used as storage capacity is a trend that is expected to continue as

it gives traders great flexibility in volatile markets Tonnes miles will increase as demand rebounds and new refineries regain cost advantage Current depressed market can end up improving supply picture through accelerated scrapping, cancellations and consolidation

Product Tanker market – balance between supply and demand

Demand and supply development in the Product Tanker market (2009-2011) Based on TORM’s research there appear to be a good balance between increase in demand and supply in 2011 Demand is primarily driven by:

• New refineries coming on stream

in Middle East and India

• Phase out
• Increased oil demand – negative

in 2009 but positive over the period

• Increasing port days due to

bottlenecks Supply side affected by:

• 37 LR1 vessels are replacing

phase outs in the crude oil segment

• 30% of LR2 vessels are expected

(on average) to trade in the crude

• il segment
• Expected cancellations of 15%

as a consequence of the financial crisis A number of swing factors can change the picture:

• Delays in order book
• Delays in refineries
• Slow steaming
• Clean to crude swap

*The number of vessels reflects MR vessels – when necessary a conversion factor for LR2, and LR1 have been used based on their DWT relative to MR

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Company facts Finance Strategy Tank market Dry bulk market

404 546 4 68 70 534 913 119 51 98 111 250 500 750 1,000 Refinery expansions Growth in oil demand Increasing port days Arbitrage Total demand increase Swing factors Total supply increase Phase out LR1 into dirty market LR2 into dirty market Est. Cancellations Order book gross Number of vessels*

Demand Supply

The value of pools materialize in a pressured market

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Better optimization and planning

• With a number of longer term contracts it is

possible to triangulate

• Example from LR1 pool:
• Gasoline: Mediterranean-> Arabian Gulf
• Naptha: Arabian Gulf -> Taiwan
• Middle destillates: Far East ->

Mediterenean Less exposed to specific markets

• As MR rates in the Far East were very low a

number of small players suffered as they were fully dependent on this market Stronger negotiation position

• Agents
• Customers
• Suppliers

Vessel owners POOL Customers Suppliers TORM 1 2 3 4 5 6 TORM founded it’s first pool in 1990 and today operates three pools:

• LR2*: 30 vessels
• LR1: 30 vessels
• MR: 35 vessels
• 1. Owners make vessels available for pool
• 2. Customers charter vessels for one or more

voyages

• 3. Customers pay charter hire to pool
• 4. Voyage related costs
• 5. Management fees to pool manager
• 6. Pool income distributed to members,

based on point system and availability to pool TORM’s Pool Business Model… Reduced idle and ballast days More stable earnings Cost advantages

*Operated together with Maersk Tankers

.. has a number of advantages

Company facts Finance Strategy Tank market Dry bulk market

20 40 60 80 100 120 140 160 180 200 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09

MR - 1 year T/C and second hand prices (indexed)

47,000 DWT 5 year old secondhand prices (index) 1 Year Timecharter Rate 47-48,000 Modern Products Tanker - index

Vessel prices have continued to decline and S&P activity is very limited

Vessel price development*

*Source: Clarksons and TORM research 25 30 35 40 45 50 55 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09

MR newbuild and second hand prices

47-51,000 DWT Products Tanker Newbuilding Prices 47,000 DWT 5 year old secondhand prices

USDm

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Company facts Finance Strategy Tank market Dry bulk market

New building and second hand prices have continued to decline in the second quarter of 2009 However, there is currently very limited activity in the market and it is therefore difficult to estimate a realistic price level Furthermore no new buildings have been

• rdered in the last 3-4 quarters

Rates and second hand prices are relatively well correlated and as the TC market continues to decline slowly due to the very low spot rates the vessel prices are still under pressure

10 20 30 40 50 60 70 80 90 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09

Panamax spot rates and 1 year T/C rates

Panamax dry bulk spot rates Panamax dry bulk 1 year T/C rates

USDt

10 20 30 40 50 60 70 80 90 Jan/08 Apr/08 Jul/08 Oct/08 Jan/09 Apr/09 Jul/09

Panamax spot rates and 1 year T/C rates

Panamax dry bulk spot rates Panamax dry bulk 1 year T/C rates

USDt

Dry bulk market rebounded in first quarter

Freight rates (historical and latest) TORM’s Bulk Division had an EBITDA of USD 13 m in the second quarter of 2009 – hereof USD 13 m was related to the sale of TORM Baltic and the exercise of a purchase option with subsequent sale

• f TORM Skagen

TORM Marta and TORM Tina havealso been sold, but were delivered to the buyers in the third quarter and therefore the profit from these sales will be part of third quarter result Freight rates increased by app. 100% in the second quarter, but from a relatively low starting level The rates are still primarily driven by the development in China and especially the Chinese import of iron ore which is estimated to be 30% higher in the first half of 2009 compared to the same period in 2008 TORM has focused to increase coverage during the recent upturn in freight rates and expect the market to be very volatile going forward

Company facts Finance Strategy Tank market Dry bulk market

*Source: Clarksons

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20 40 60 80 100 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09

Panamax newbuild and second hand prices

75-77.000 DWT Panamax Bulkcarrier Newbuilding Prices Panamax 73K Bulkcarrier 5 Year Old Secondhand Prices

USDm

20 40 60 80 100 120 140 160 180 200 Jan/05 Jan/06 Jan/07 Jan/08 Jan/09

Panamax 1 Year T/C and second hand prices (indexed)

Panamax 73K Bulkcarrier 5 Year Old Secondhand Prices

• index

1 Year Timecharter Rate 75,000 dwt Bulkcarrier

• index

Second hand market on dry bulk recovered partly in second quarter

Vessel price development* In the second quarter there was high activity in the sale and purchase market of second hand dry bulk vessels The prices on a 5 year old panamax increased app. 10% On the newbuilding market there was very limited activity and therefore there is uncertainty related to the true price of a newbuilding The strong increase in spot rates was only partly reflected in TC rates which again is strongly correlated with vessel prices

*Source: Clarksons and TORM research

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Company facts Finance Strategy Tank market Dry bulk market

Coverage of earnings by end of June 2009

At 30 June 2009, TORM had covered:

• 45% of the remaining

earning days in the Tanker Division at USD 19,919 per day

• 69% of the remaining

earning days in the Bulk Division at USD 17,376 per day Hedging end of June 2009

Company facts Finance Strategy Tank market Dry bulk market

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RoY 2009 2010 2011 RoY 2009 2010 2011 Tank LR2 2,937 5,488 4,563 910 868 425 LR1 3,995 8,105 6,768 1,588 1,199 730 MR 8,061 17,511 18,256 3,612 3,643 1,004 SR 2,178 3,682 3,650 1,656 1,913 730 Total tank 17,171 34,786 33,237 7,766 7,623 2,889 Bulk Panamax 2,421 5,137 6,145 1,665 1,992 608 Total tank and bulk 19,592 39,923 39,382 9,431 9,615 3,497 RoY 2009 2010 2011 RoY 2009 2010 2011 Tank LR2 31% 16% 9% 23,326 27,478 29,801 LR1 40% 15% 11% 20,308 19,974 18,598 MR 45% 21% 5% 20,159 20,771 19,508 SR 76% 52% 20% 17,149 17,316 15,135 Total tank 45% 22% 9% 19,919 20,542 19,687 Bulk Panamax 69% 39% 10% 17,376 16,119 16,540 Total tank and bulk 48% 24% 9% 19,470 19,626 19,140 Total days Covered days Coverage ratio

• Avg. coverage rate

Strategy concerning FR8 remains

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Company facts Finance Strategy Tank market Dry bulk market

Status

• 24 Jan 2008 TORM acquired 50% equity stake in FR8 from Projector that kept a 50% stake
• Projector is currently in liquidation
• TORM’s strategic rationale for the acquisition was to get access to additional oil cargoes and get better

insight to the demand side of the product tanker market

• This strategy remains and TORM is pursuing a new strategic partner

Key data

• FR8 is a oil tanker shipping company operating in all key geographic regions
• Offices in Vera Cruz, London and Singapore
• 20 vessels under management
• 6 owned vessels: 4 MRs and 2 LR1s, average age of app. 3.5 years
• 14 chartered-in: 10 MRs, 2 LR1s and 4 LR2s

Mark-to-market non-cash effects reduced earnings

TORM’s earnings in second quarter of 2009 were negatively impacted by USD 25 m mark-to- market adjustments This was primarily due to writedown of USD 23 m on

• ptions related to vessel

values The options were a part of the acquisition of OMI Mark-to-market non-cash adjustments

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Company facts Finance Strategy Tank market Dry bulk market

USD m Q1 Q2 H1 Commercial

• 0.6
• 5.4
• 6.0

Financial 2.3

• 19.9
• 17.5

Total 1.8

• 25.3
• 23.5

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Impairment considerations

Process concerning impairment tests

• Each quarter TORM receives indications on its fleet value from three

internationally acknowledged shipbrokers

• TORM performs an asset based valuation based on:
• the average of the broker estimates
• a valuation of TC book (in and out)
• a valuation of any other assets with market values that may differ from book

value

• Furthermore TORM performs a DCF valuation
• Based on the asset based valuation and the DCF valuation and the robustness of

these TORM makes an assessment of whether a potential impairment loss should be realised

Company facts Finance Strategy Tank market Dry bulk market

126 264 111 60 562 400

• 100

200 300 400 500 600 2009 2010 2011 2012 Total CAPEX Cash and unused credit facilities Remaning capex end of June 2009 USDm 70 139 181 176 566 1669 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2009 2010 2011 2012 Total untill EoY 2012 Total debt Repayments end of June 2009 USDm

Financing – no loan to value covenants, back end loaded repayment schedule and sufficient credit facilities

TORM is well positioned to meet the financial crisis

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• TORM has good and strong relations with the

banks

• Cash and unused credit facilities of app. USD

400 m by end of June 2009

• Remaining capex of USD 562 m relating to the

new building programme by end of June 2009

• 65% of the total debt falls due after 2012 and

thereafter

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

1250 m

• No less than USD 25 m in cash

Company facts Finance Strategy Tank market Dry bulk market

1000 2000 3000 4000 5000 6000 7000 8000 9000 LR2 LR1 MR SR Panamax Development in operating cost per day (USD/day) Q2 08 Q2 09

“Greater Efficiency Power” project on track

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Status on Greater Efficiency Power Key milestones achieved:

• 10% reduction in average opex/day
• Re-organisation of global crew management and land based setup
• Fleet management processes improved
• Procurement functions centralized and strengthened
• 10% reduction of land-based employees
• Centralization of support functions to better utilize global IT platform

TORM’s efficiency programme “Greater Efficiency Power” is almost fully implemented The targeted savings of USD 40- 60 m are expected to be realised from 2010 and onwards The effect on operating cost per vessel was allready significant in Q2 where the average decrease (y-o-y) was app. 10%

Company facts Finance Strategy Tank market Dry bulk market

Ambitious CSR strategy with strong green focus

Company facts Finance Strategy Tank market Dry bulk market

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Focus on environment has never been bigger and shipping has a key role

• At the latest G8 meeting the struggle

against the global climate changes was a key topic

• Participants made a preliminary

agreement that the global temperature increase must not exceed 2 degree Celsius before 2050

• The fifteenth Conference of the Parties

under the UN Climate Change Convention takes place in Denmark in Dec 7-18

• Expectations are that a very ambitious

CO2 reduction plan will be agreed

• Shipping accounts for more than 90%
• f all transportation of goods
• Global shipping accounts for 2.7% of

global CO2 emissions

• Shipping is the most energy-efficient

form of transportation compared to train

• r truck

..therefore TORM has decided on an ambitious CSR strategy with green focus

• TORM signed the UN Global Compact in

2009 as first Danish ship owner

• TORM’s climate strategy:
• Reduction of CO2 air emissions pr.

vessel by 20% in 2020 compared to 2008

• Reduction of CO2 air emissions at

the office locations by 25% pr. Employee in 2020 compared to 2008

• Participating in the Carbon Disclosure

Project (CDP) reporting

• TORM just received BP’s Shipping Award

for outstanding environmental achievement

Appendix

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Fleet* 140 vessels under management

• 127 product tankers (63 owned, 24 chartered-in, 40 in pools/comm. mngt)
• 13 bulk carriers (4 owned, 9 chartered-in)

Strategy

• Superior advantage through modern tanker fleet, sizeable market share through pool
• peration, excellent quality delivery model and global reach
• Consolidate the Product tanker market

Key financials Total # employees 3,200 – hereof 2,900 seafarers Listing Listed on OMX and NASDAQ Market cap USD 600-800 m

Key facts

USD m H1 2009 2008 2007 Revenue 452 1,184 774 EBITDA 111 572 304 Net income 6 360 792** NIBD 1,670 1,550 1,536 Equity 1,270 1,279 1,081

*Figures are end of February 2009 **Includes a book gain of USD 643 m from the sale of shareholding in Norden

Company facts Finance Strategy Tank market Dry bulk market

We have a global footprint based on regional power and presence

• App. 3200 employees

Seafarers:

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

Offices:

• 170 in Copenhagen
• 18 in Singapore
• 22 in Manila
• 88 in Mumbai
• 13 in Stamford

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Company facts Finance Strategy Tank market Dry bulk market

Newbuilding programme will increase size of TORM fleet with

• app. one third over the next three years

TORM fleet overview

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Company facts Finance Strategy Tank market Dry bulk market 31/12/2006 31/12/2007 31/12/2008 Mid Aug 2009 31/12/2009 31/12/2010 31/12/2011 31/12/2012 Owned vessels Tank LR2 7.0 9.5 12.5 12.5 12.5 12.5 12.5 12.5 LR1 6.0 7.5 7.5 7.5 7.5 7.5 7.5 7.5 MR 18.0 29.0 29.0 32.0 33.0 40.0 41.0 44.0 SR

• 10.0

10.0 11.0 11.0 11.0 11.0 11.0 Total Tank 31.0 56.0 59.0 63.0 64.0 71.0 72.0 75.0 Bulk (Panamax only) 5.0 6.0 6.0 4.0 4.0 5.0 8.0 8.0 Total Fleet - Owned 36.0 62.0 65.0 67.0 68.0 76.0 80.0 83.0 Timechartered fleet Total tank 9.5 16.5 22.0 24.0 25.0 22.5 21.0 16.5 Total bulk 9.0 8.0 11.0 9.0 9.0 11.0 11.0 12.0 Total Fleet - Timechartered 18.5 24.5 33.0 33.0 34.0 33.5 32.0 28.5 Total fleet under management LR2 25.1 25.1 29.1 30.1 LR1 36.0 46.0 38.0 36.0 MR 24.0 35.5 42.0 48.0 SR

• 12.0

12.0 13.0 Total tank 85.1 118.6 121.1 127.1 Bulk 14.0 14.0 17.0 13.0 Total fleet operated by Torm 99.1 132.6 138.1 140.1

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Key products being transported

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 H1 2009 Naphtha Gasoil Other

LR1 - distribution of cargoes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 H1 2009 Gasoline Gasoil Other

MR - distribution of cargoes

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 H1 2009 Crude oil Naphtha Gasoil Other

LR2 - distribution of cargoes

Distribution of cargoes in the TORM Product Tanker segment Gasoline is the single most transported product by TORM’s MR vessels However in first half of 2009 the share declined a little bit whereas the share of gasoil was relatively larger Other products consists among

• thers of jet fuel and diesel

Crude oil has in 2008 and first half

• f 2009 constituted a very large

share of TORM’s LR2 vessels cargoes Other products consists among

• thers gasoline, clean condensate

and diesel Naphtha and gasoil have been the most important cargoes for TORM’s LR1 vessels This pattern was basically the same in H1 2009 Other products consists among

• thers of gasoline, clean

condensate and fuel oil

Company facts Finance Strategy Tank market Dry bulk market

*Source: TORM research

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Key routes in the second quarter

*Source: TORM research

Naphtha Middle East to Japan, Korea & Taiwan Crude Oil North Africa to Europe

• Unl. Gasoline

Europe to USA Gasoil Intra-Asia Trading Diesel USA to Europe Naphtha Middle East to Japan

Primarily trading driven Demand-supply driven

Company facts Finance Strategy Tank market Dry bulk market

Naphtha Far East to Europe Naphtha Intra-MiddleEast Trading

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 BoY 2009 BoY 2010 BoY 2011 BoY 2012 Middle East and India refinery capacity

Total capacity % of world capacity (RH)

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2009 2010 2011 2012 Timing of refinery expansions ('000 barrels per day)

Middle East India Rest of the world Growth in world capacity (RH)

New refineries remains a key factor for future demand growth

Refinery expansions Total refinery capacity is expected to increase by 2-3% per year in the coming years A large part of the new refinery capacity is planned in the Middle East and India Refinery capacity continue to be built close to production areas and away from consumption areas This trend is a key driver for continued growth in demand for product tanker capacity as transport distances increase and thereby occupy supply of tonnage

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Company facts Finance Strategy Tank market Dry bulk market

• 50

50 100 150 200 250 300 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

• No. of vessels

Product tankers by year of construction

LR2 LR1 MR

Expected phase outs 32 31 84 119 109 77 98 67 414 558 355 534 100 200 300 400 500 600 LR2 gross LR2into dirty market LR2 into clean LR1 gross LR1 into dirty market LR1 into clean MR Total before cancellations Est. Cancellations Phase outs Total Total converted to MR's

• No. of vessels

Total estimated newbuilding programme (09-11)

Order book is very high but cancellations are expected

Supply overview* The number of newbuild deliveries is expected to peak in 2009 Especially within the MR segment there is a substantial newbuilding programme Single-hulls build untill early 1990’s are expected to be phased out during the coming years

*Source: Inge Steenslan Shipbrokers and TORM research

30% of the LR2 and LR1 newbuildings are expected to trade in the crude oil segment (app. 1/3) Furthermore the financial crisis is expected to lead to a number of cancellations – TORM estimates 15% Thus the real effect from the order book on the supply situation will be somewhat lower than what appears at first sight

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Company facts Finance Strategy Tank market Dry bulk market

TORM positioned to benefit fully from strong long term prospects in product tanker market

Company facts Finance Strategy Tank market Dry bulk market

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• Green focus becomes increasing more important
• Oil companies’ requirement getting stricter:
• Safety
• Fleet quality
• Environment

Strong vetting operation and internal CSR policy becomes a competitive advantage Green trend increases barriers to entry Economies of scale

• Larger fleet under operation gives better planning

possibilities and increase vessel utilization

• Increased bargaining power
• Cost advantage of scale

Trend towards increased economies of scale will benefit large players Structural changes drive refined product transport

• New refineries are placed close to production

(away from consumption)

• Increased trading with refined products
• No increases in harbour capacity increases port

days Strong demand growth together with increases in port days improves demand/supply picture The financial crisis will “clean up” market

• Financing possibilities are reduced
• A number of large order books are currently

unfunded

• Low freight rates giving short term earnings

pressure Market players with a sound financial and liquidity position will come out stronger on the other side of the financial crisis TORM is ideally positioned to benefit from the key trends

TORM is the operator of three Product tanker pools

LR2 Pool** LR1 Pool MR Pool Vessel type: Aframax Panamax MR Vessel size (DWT): ~100,000 ~75,000 ~45,000 Total vessels: 30 30 35 Participants (vessels) Gotland (1) Maersk Tank (15) TORM (14) Gotland (1) Nordan Tankers (1) Nordic Tankers (1) Oldendorff (4) Skagerack (5) TORM (18) Gotland (4) Primorsk (3) Sanmar (1) TORM (27)

*Not including TORM’s SR vessels which are either on long charter or in pools where TORM is passive pool partner ** Operated together with Maersk Tankers

TORM pools end of July 2009*

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Company facts Finance Strategy Tank market Dry bulk market

100 200 300 400 500 600 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

• No. of vessels

Dry bulk carriers by year of construction

Bulk 200+ Kdwt Bulk 150-200 Kdwt Bulk 100-150 Kdwt Bulk 60-100 Kdwt

Order book is all time high – however, cancellations will improve the picture

Supply overview* The order book on the dry bulk market is all time high – and the effect hereof is yet to be seen Within the capesize segment (100-150 kDWT) total fleet is expected to be doubled over the coming years However, there is expected up to 30% cancellations

*Source: Fearnleys and TORM research

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Company facts Finance Strategy Tank market Dry bulk market

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 DWt

Dry bulk DWt by year of construction

Bulk 200+ Kdwt Bulk 150-200 Kdwt Bulk 100-150 Kdwt Bulk 60-100 Kdwt

35% 23% 30% 24% 35% 53% 0% 20% 40% 60% 80% 100% Tanker Bulk*

TC cost Opex Not directly allocated

USDt/day 14,000

~

15,000

~

Break even rates – rough estimates

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All expected cash cost and cash earnings below gross profit (admin., other income , net interest and dry-dock costs) are allocated per segment based on number of owned vessels Cash Break even rates per segment for 2009 (estimates)

*Excl. wash out of USD 26 million for early returns of four Panamax bulk carriers. Including this the break even rate is only app. USD 10.000 per day Company facts Finance Strategy Tank market Dry bulk market

Detailed key figures overview

USD million H1 2009 2008 2007 2006 2005 P&L Revenue 452 1,184 774 604 586 EBITDA 111 572 288 301 351 Net income 6 361 792 235 299 Balance Total assets 3,256 3,317 2,959 2,089 1,810 Long term assets 2,951 2,913 2,703 1,970 1,528 Equity 1,270 1,279 1,081 1,281 905 NIBD 1,670 1,550 1,548 663 632 Cash and marketable securities 113 168 105 32 157 Cash flow statement Operating cash flow 12 385 188 232 261 Investment cash flow

• 18
• 262
• 357
• 118
• 473

Financing cash flow 20

• 59

242

• 239

303 Financial related key figures EBITDA margin 25% 48% 37% 50% 60% Return on equity (ROE) 0% 31% 67% 22% 37% Return on invested capital (ROIC) 2% 16% 10% 20% 34% Stock related key figures Earnings per share (EPS) 0.09 5.21 11.44 3.38 4.29 Cash flow per share, CFPS (USD) 1.05 5.56 2.71 3.33 3.74 Proposed dividend per share (DKK) 4.00 4.50 5.75 11.50

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Company facts Finance Strategy Tank market Dry bulk market

Key figures overview

Matters discussed in this presentation may constitute forward-looking statements. Such statements reflect TORM's current expectations and are subject to certain risks and uncertainties that could negatively impact TORM's business. To understand these risks and uncertainties, please read TORM's announcements and filings with The US Securities and Exchange Commission. Safe Harbour Statement

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