Annual Report 2017 and Outlook 2018 Copenhagen Stock Exchange:DNORD

(MENAFNEditorial) Attached please find the full report as PDF file.
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Announcement no. 2
6 March 2018

Annual Report 2017 and Outlook 2018
Today, the Board of Directors approved the annual report for 2017. The full report in English is attached as PDF file and contains the following highlights:

Results
Adjusted result for the year 2017: USD 28 million (2016: USD -35 million)
- Dry Cargo: USD 14 million (USD -52 million)
- Tankers: USD 14 million (USD 17 million)
Group EBIT 2017: USD 23 million (USD -65 million)

Mid-year: NORDEN Dry Cargo split into 2 distinct business units; Dry Operator and Dry Owner.

New business units off to a good start in improving markets:
- Dry Operator adjusted result for second half 2017: USD 12 million (Q4 2017: USD 14 million)
- Dry Owner adjusted result for second half 2017: USD 19 million (Q4 2017: USD 12 million)

NORDEN Tankers:
- Utilising low rates to significantly increase chartered capacity during the year with what is equivalent to 71.5 vessel years – predominantly with forward delivery.
- Adjusted result for the fourth quarter: USD 2 million.

Guidance
- Expected adjusted results for 2018 for the group: USD 10 to 50 million based on a continued gradual improvement in the dry cargo market and a tanker market that after a weak start to the year is expected to improve slightly.

CEO Jan Rindbo in comment:
'Based on a strong performance in the fourth quarter, NORDEN delivered the first positive result in 5 years. With a new, agile business unit in the form of Dry Operator, a substantial cyclical exposure in both Dry Owner and Tankers and a skilled organisation with a winning mentality, NORDEN is well-positioned to 2018. On that basis, we expect an adjusted result for the year of USD 10 to 50 million.'

A telephone conference will be held today at 3:30 p.m. (CET), where CEO Jan Rindbo and CFO Martin Badsted will comment on the report. It is requested that all participants have joined the meeting by latest 3:25 p.m. (CET) – international participants please dial in on +44 (0) 330 336 9105 or +1 323 794 2551, Danish participants please dial in on +45 3515 8049. The telephone conference will be shown live at www.ds-norden.com, where the accompanying presentation will also be available.

For further information: Jan Rindbo, CEO, tel.: +45 3315 0451.

Key figures and financial ratios

2017 2016 2015 2014 2013

Income statement, USD million Revenue 1,808.6 1,251.2 1,653.4 2,038.1 2,145.9 Costs -1,740.5 -1,220.6 -1,632.9 -2,299.6 -2,121.6 Earnings before depreciation, etc. (EBITDA) (excl. provisions) 68.1 30.6 165.5 -31.3 24.3 Provision (excl. joint ventures) 0.0 0.0 -145.0 -230.2 0.0 Earnings before depreciation, etc. (EBITDA) 68.1 30.6 20.5 -261.5 24.3 Profit and loss from sale of vessels, etc. 0.9 -45.5 -31.0 0.0 2.5 Depreciation and write-downs -42.2 -49.6 -248.6 -68.2 -79.0 Earnings from operations (EBIT) 23.3 -64.5 -282.0 -335.5 -51.3 Fair value adjustment of certain hedging instruments 0.0 34.5 9.1 -61.9 10.6 Net financials -0.9 -12.3 -9.4 -15.2 -2.5 Profit/loss before tax 22.4 -42.2 -282.3 -412.5 -43.2 Profit/loss for the year 24.6 -45.6 -284.9 -415.6 -47.7 Profit/loss for the year for the NORDEN shareholders 24.6 -45.6 -284.9 -415.6 -47.7 Adjusted results for the year 1) 28.4 -34.6 -263.0 -350.2 -60.8

Statement of financial position, USD million Non-current assets 786.5 767.1 945.7 1,221.0 1,215.2 Total assets 1,326.5 1,301.0 1,604.7 1,778.0 2,061.2 Equity (including minority interests) 834.4 801.4 856.1 1,139.3 1,604.8 Liabilities 492.1 499.6 748.6 638.7 456.4 Invested capital 836.7 753.8 788.7 1,131.6 1,377.0 Net interest-bearing assets -2.3 47.6 67.3 7.7 227.8 Cash and securities 219.4 263.9 365.7 238.3 486.1

Cash flows, USD million From operating activities 6.3 -79.7 76.9 -46.0 -8.9 From investing activities -0.2 102.1 -112.9 66.2 -61.9 - hereof investments in property, plant and equipment -75.4 -36.8 -131.6 -110.4 -139.4 From financing activities 3.0 -85.3 67.5 -79.4 62.5 Change in cash and cash equivalents for the year 9.1 -62.9 31.5 -59.2 -8.3

Financial and accounting ratios Share-related key figures and financial ratios: No. of shares of DKK 1 each (including treasury shares) 42,200,000 42,200,000 42,200,000 42,200,000 43,000,000 No. of shares of DKK 1 each (excluding treasury shares) 40,467,615 40,467,615 40,467,615 40,460,055 40,770,988 No. of treasury shares 1,732,385 1,732,385 1,732,385 1,739,945 2,229,012 Earnings per share (EPS) (DKK) 0.6 (4) -1.1 (-8) -7.0 (-47) -10.3 (-58) -1.2 (-7) Diluted earnings per share (diluted EPS) (DKK) 0.6 (4) -1.1 (-8) -7.0 (-47) -10.3 (-58) -1.2 (-7) Dividend per share, DKK 0 0 0 0 5 Book value per share (DKK) 19.8 (123) 19.0 (134) 21.2 (144) 28.2 (172) 39.4 (213) Share price at year-end, per share DKK 1 116.5 110.5 122.1 131.4 285.0 Price/book value 0.9 0.8 0.8 0.8 1.3 Other key figures and financial ratios: EBITDA ratio 3.8% 2.4% 1.2% -12.8% 1.1% ROIC 2.9% -8.4% -10.6% -26.7% -3.8% ROE 3.0% -5.5% -28.6% -30.3% -2.9% Payout ratio (excluding treasury shares) 2) 0.0% 0.0% 0.0% 0.0% 0.0% Equity ratio 62.9% 61.6% 53.3% 64.1% 77.9% Total no. of ship days for the Group 93,738 79,060 75,763 83,866 90,069 USD rate at year-end 620.77 705.28 683.00 612.14 541.27 Average USD rate 659.53 673.27 672.69 561.90 561.60

The ratios are computed in accordance with 'Recommendations and Financial Ratios 2015' issued by the Danish Association of Financial Analysts. However, 'Profit and loss from sale of vessels, etc.' is not included in EBITDA. Please see definitions in the section 'Definitions of key figures and financial ratios'. The figures are adjusted for the Company's holding of treasury shares.
1) 'Adjusted results for the year' is computed as 'Profit/loss for the year' adjusted for 'Profit and loss from sale of vessels, etc.' and 'Fair value adjustment of certain hedging instruments' for periods before 2017. Including adjustment from sale of vessels in joint ventures.
2) The payout ratio is computed based on proposed dividends for the year, including extraordinary dividends paid during the year.

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DAMPSKIBSSELSKABET NORDEN A/S, 52, STRANDVEJEN, DK-2900 HELLERUP, CVR NO. 67758919