Stolt-Nielsen Limited
Company Presentation
Forward-Looking Statements and Disclaimer
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 development, (iii) marketing plans, the
Company’s target market, (iv) evaluation of the Company’s markets, competition and competitive
positions, and (v) trends which may be expressed or implied by financial or other information or
statements contained herein.
Such forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and other facts that may cause the
actual results, performance and outcomes to be materially different for any future results, performance
or outcomes expressed or implied by such forward-looking statements.
This presentation has been prepared in connection with a potential bond issue by Stolt-Nielsen Limited,
but does not constitute an offering or attempted offering or sales of securities of any kind. The
mentioned potential bond issue will be detailed in other documents. It is intended that the offering will
be made to (i) Norwegian professional investors and eligible counterparties as defined in the
Norwegian Securities Trading Regulations Sections 10-2 to 10-4, (ii) to non-“United States persons” in
“offshore transactions” within the meaning of Rule 902 under the Securities Act of 1933, as amended
(the “Securities Act”), and (iii) “Qualified Institutional Buyers” pursuant to Rule 144A of the Securities
Act. The bonds may not be purchased by, or for the benefit of, persons resident in Canada.
Page 2
Stolt-Nielsen Limited (SNL)
• Founded in 1959 by Jacob Stolt-Nielsen, pioneer of the parcel tanker industry
• Integrated logistics company offering transportation and storage for bulk liquids in
parcel tankers, tank containers and terminals
• Registered in Bermuda and listed on the Oslo Stock Exchange since 1995
• More than 5,000 employees world wide with 43 offices in 26 countries
• Market capitalisation of $0.8 billion ; book value of equity of $1.3 billion
(a)
Top shareholders (as of May 31, 2016)
SURNAME
HOLDING OF SHARES % of Share
FIDUCIA LTD
29,634,255
54%
STOLT-NIELSEN LIMITED
9,188,941
17%
FOLKETRYGDFONDET
1,816,769
3%
THE BANK OF NEW YORK MELLON SA/NV
1,179,918
2%
EUROCLEAR BANK S.A./N.V. ('BA')
1,076,838
2%
JEFFERIES LLC
1,038,578
2%
CITIBANK, N.A.
827,640
2%
FIDELITY FUNDS-NORDIC FUND/SICAV
645,192
1%
JP MORGAN CLEARING CORP.
614,511
1%
HOME CAPITAL AS
590,024
1%
SKANDINAVISKA ENSKILDA BANKEN
562,409
1%
A/S SKARV
550,000
1%
(a) Market capitalisation as of Jun 02, 2016 (NOK 115 per share)
Page 3
Share price development (NOK)
Board of Directors
Samuel Cooperman: Director for 7
years. Has served as a Director of
Stolt-Nielsen Limited since 2008
and newly elected Chairman of the
Board of Directors in 2016. Mr.
Cooperman joined Stolt-Nielsen
in 1974 and held a number of senior
management positions.
Håkan Larsson: Director for 8
years. He was the Chief Executive
Officer of Rederi AB Transatlantic
from 2003 to 2007. He serves as
Chairman of Wallenius
Wilhelmsen Logistics AS, Tyrens
AB, Valea AB and Inpension
Asset Management AB. He is a
director of Semcon AB, EUKOR
Car Carriers Inc and
Handelsbanken.
Niels G. Stolt-Nielsen: Director for 20
years and Chief Executive Officer
since 2000. He served as Interim
Chief Executive Officer of Stolt
Offshore S.A. from September 2002
until March 2003. He was the
President of Stolt Sea Farm from 1996
until 2001. He serves as Chairman of
Avance Gas Holding Ltd and as a
Director of Golar LNG Limited.
Page 4
Jacob B. Stolt-Nielsen: Director for 21
years. He served as an Executive
Vice President of Stolt-Nielsen
Limited from 2003 to 2004. In 2000,
he founded and served as Chief
Executive Officer of SeaSupplier Ltd.
until 2003.
Rolf Habben Jansen: Director since
2015. Mr. Habben Jansen has
served as Chief Executive Officer
of Hapag-Lloyd AG, one of the
world’s largest container shipping
companies, since July 2014, after
having been appointed a member
of the Hapag-Lloyd AG Executive
Board in April 2014.
Tor Olav Trøim: Nominated for
election to the SNL Board, he has
served as a Director and Vice
Chairman of Golar LNG
Limited since the company was
established in May 2001. He is
Chairman of Golar LNG Partners, a
master limited partnership, and is
currently a partner in Magni Partners
UK. Between 1995 and 2014, Mr
Trøim was employed by Seatankers
First-Quarter 2016 Highlights
• Stolt Tankers operating profit of $31.2M, down from $35.4M, reflecting the impact of
fewer operating days in the first quarter and losses on bunker hedges; spot market
remained strong with lower bunker costs
• Stolthaven Terminals operating profit of $10.5M, up from $2.6M in the previous
quarter, when results were held down by write-downs of certain assets, accelerated
depreciation and settlements of customer claims
Operating
• Stolt Tank Containers operating profit of $11.8M, down from $13.1M, reflecting
seasonally lower freight rates and utilisation despite an increase in shipments
• Stolt Sea Farm operating profit of $5.5M, compared with a loss of $2.5M; accounting
for inventories at fair value had a positive impact of $3.4M, compared with a negative
impact of $2.7M in 4Q15
• Corporate and Other reported an operating loss of $1.2M, compared with an operating
loss of $5.0M in 4Q15
Quarter
(Unaudited)
1Q16
4Q15
1Q15
2015
$464.0
$494.6
$487.7
$1,983.7
Operating Profit
57.8
43.6
71.5
246.2
Net Profit (attributable to SNL equity holders)
30.4
21.4
38.7
132.7
EPS Diluted
Weighted average number
of shares outstanding diluted
0.55
0.38
0.69
2.36
55.1
55.7
56.3
56.1
Revenue
Financial
Page 5
Full Year
EBITDA - Stable Performance
$US Millions
$US Millions
TANKERS
TERMINALS
80
14%
60
40
69
62
20
38
42
48
41
39
43
43
73
30
11%
25
8%
20
14%
11%
8%
15
67
5%
49
10
2%
0
-1%
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
23
25
25
20
24
23
25
21
23
0
5%
-1%
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
TANK CONTAINERS
STOLT-NIELSEN LIMITED a)
11%
27
2%
$US Millions
14%
27
5
$US Millions
30
26
140
14%
120
11%
100
20
8%
25
24
24
20
10
23
24
25
22
24
21
5%
20
17
8%
80
60
40
95
95
101
89
89
93
99
101
119 123 114 115
2%
2%
20
0
-1%
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
EBITDA
0
-1%
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
Quarterly EBITDA as a % to NAB
a) EBITDA before fair value of biological assets, insurance reimbursements and other one-time, non-cash items
Page 6
5%
Stolt, More Than a Shipping Company…
Page 7
SNL Business Divisions
Stolthaven
Terminals
Stolt Tankers
•
•
Leading global
provider of
transportation
services for bulkliquid chemicals,
edible oils, acids,
biofuels and CPP
~20 million tons of
cargo carried yearly
•
Global provider of
storage services for
bulk-liquid
chemicals, edible
oils, acids, biofuels
and CPP products
Stolt Tank
Containers
•
One of the world’s
leading provider of
door-to-door
transportation
services for bulkliquid chemicals
and food-grade
products
Stolt Bitumen
Services
Stolt Sea Farm
•
•
Leading
aquaculture
company focused
on the production
of premium fish
species
15 farms worldwide
•
Developing a
bitumen distribution
network in fastgrowing Asia
Pacific markets
Stolt-Nielsen Gas
•
•
•
Stolt-Nielsen LNG
to target small
scale supply chains
to deliver LNG to
stranded demand.
Owns 2.48M
shares (7.2%) of
Avance Gas
Holding Ltd.
Owns 2.18M
shares (2.3%) of
Golar.
Key Highlights
Key Highlights
Key Highlights
Key Highlights
Key Highlights
Key Highlights
60 Deep-sea parcel
4.5M Cubic meters
35,000+ Tank
5,400
3 Bitumen terminals
14 VLGCs in the
tankers
of storage capacity
containers in the fleet
Production capacity of
turbot (tons)
84 Coastal and inland
20 Owned and joint-
tankers
venture terminals
6 NBs on order with
delivery 2016-17
19 Maintenance and
repair depots
100,000 cbm under
2,000
Planned production
capacity of new sole
farm (tons)
construction
$67M
*
EBITDA
* 1Q16 result
Page 8
*
*
*
$23M
$17M
$7M
EBITDA
EBITDA
EBITDA
Avance Gas fleet
2 owned ships; two
owned and one T/C in
130 Bitutainers
JV in Sardinia: HIGAS
Business Model - Integrated Logistics Service Provider
Stolt-Nielsen Limited is a leading provider of integrated transportation, storage and
distribution services through its three largest operating units
Shipping
• Global deep sea, coastal
and inland tanker
capabilities
• Focus on sophisticated
specialty tonnage with
high degree of COAs
Page 9
Bulk Liquid Storage
• Strategic locations
• Regional hubs; optimise
ship-to-shore interface
• Facilitates growth of sea
borne chemical transport
Door-to-door
Transportation
• Shipments of bulk liquids
world wide
• Global network of 13
depots
• Just in time supply chain
management
What Drives Our Business
Specialty and
commodity
chemicals flow
both east and
west across the
North Atlantic.
Specialty
chemicals flow
to and from the
US Gulf and
Asia.
Commodity
chemicals – with
endless
applications flow
both east and
west from the
Arabian Gulf, to
Europe and the
U.S., Africa and to
Asia.
Palm oils flow
from Asia
Pacific to the
U.S. Gulf,
Europe and
South
America.
Phosphoric
acid flows
from North
Africa east to
India, where it
is used to
make
fertilisers.
Sulphuric acid, a by
product of industrial
activity, flows to the
west cost of South
America where it is
used in copper
mining
Brazilian ethanol,
veg oils and
petrochemicals
flow east to South
Africa and Asia,
with commodity
and specialty
chemicals and
palm oils flowing
west.
Products we carry
Key
Stolt Tankers
Commodity chemicals
Vegetable oil/Palm oil
Speciality chemicals
Lube oils
Oleo chemicals
Acids
Regional Tankers
Stolthaven Terminals
Stolt Tank Container Depots
Trade Flows
Page 10
High grade
lube oils flow
from South
Korea to the
U.S. Gulf and
Europe.
Tankers
Hull 1707 – TBN Stolt Pride
Page 11
Stolt Tankers
Figures in USD millions
Operating Revenue
Operating Profit
140
1,400
1,200
120
1,000
100
800
80
600
60
400
40
200
20
0
2009
2010
2011
2012
2013
2014
2015
2009
1Q16
annualised
2010
2011
STJS Sailed-in Index
2012
2013
2014
2015
1Q16
annualised
EBITDA
300
250
200
150
100
50
0
2009
Index as published through 2013, based on SIR STJS member-ships + net result
outside T/C ships, base is 1Q96 + adjusting for inflation based on U.S.
Consumer Price Index (CPI)
Page 12
2010
2011
2012
2013
2014
2015
1Q16
annualised
Stolt Tankers Joint Service Sailed-in T/C Index
Asia Pacific
economic crisis and
large NB
programmes
Global economic
downturn starts
Sept.11
1Q16=0.77
Strong CPP
market
Index as published through 2013, based on SIR STJS member-ships + net result outside T/C ships, base is 1Q96 + adjusting for inflation
based on U.S. Consumer Price Index (CPI)
Source: Stolt-Nielsen and the Bureau of Labor Statistics (U.S. CPI)
Page 13
Chemical Markets Supported by Other Segments
Chemical
Crude and Product
1.20
Crude spot earnings. 12m average
1.20
•
Chemical tanker
earnings
1.05
Product spot earnings. 12m average
1.00
1.00
Chemical achieved TCE earnings.
Stolt-Nielsen and Odfjell SE.
Quarterly smoothed
0.80
1.10
0.95
•
1.00
0.90
0.60
0.90
0.40
0.80
0.85
0.80
0.75
0.20
0.70
0.70
-
0.60
Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16
Source: Clarkson, Company reports and Nordea
Page 14
A strong CPP
market helped
chemical markets
in 2015
USG chemical
exports remain
strong due to low
feedstock cost
despite a slightly
weaker CPP
market
0.65
0.25
0.35
0.45
0.55
0.65
0.75
Product tanker earnings
0.85
0.95
1.05
Chemical tanker earnings represented by average achieved TCE rate for Stolt-Nielsen Ltd. and Odfjell SE.
Monthly figures based on smoothed reported quarterly figures. Indexed with base December 2004.
Product tanker earnings represented by 12 months rolling average spot TCE earnings for LR2, LR1, MR and Handysize.
Crude tanker earnings represented by 12 months rolling average spot TCE earnings for VLCC, Suezmax and Aframax.
Chemical Tanker Fleet and Orderbook – 1Q16
DWT (in ‘000 MT)
Core fleet 1Q16 = 14.6M DWT
20,000
15,000
10,000
5,000
1Q
2Q
3Q
2011
4Q
1Q
2Q
3Q
2012
4Q
1Q
2Q
3Q
2013
4Q
1Q
2Q
3Q
2014
4Q
1Q
2Q
3Q
4Q
2015
Source: Drewry and Stolt Tankers based on 1Q 2016 fleet
Note: “Chemical Tanker Fleet” = Ships IMO 1 and 2 >= 15,000 DWT with tank size <=3,000 cbm of 19 core competitors; recycling at age 25 with
exceptions K40 at age 30
Page 15
1Q
2016
Chemical Tanker Shipping – A Different Animal
• A parcel tanker is a sophisticated and
complex asset, often purpose built. The
trade is very different from other
shipping segments where ships are
more commoditized
• The parcel trade is operationally intense
with multiple cargoes for multiple
customers with multiple port calls on
every voyage with little standardization
• The Chemical tanker segment has the
strictest and most complex regulatory
framework in the marine industry
• Parcel tankers are expensive. Stainless
steel (SS) costs 7-8 times normal
carbon steel used in product tankers
• Each tank has separate lines, pumps,
vapour return, cleaning equipment,
heating, cooling, pressurized, etc.
Page 16
Product Tanker:
Average tanks ~ 14
Cost $38M+
Chemical Parcel Tanker:
Average tanks ~ 46
Cost: $80+
Crude and product tankers
One load
One discharge
One product
One customer
Frequent ballast legs
Chemical tankers
Multiple loads
Multiple discharges
Multiple products
Multiple customers
Infrequent ballast return legs
Chemical Tanker Shipping – Demand Drivers
• We serve a broad range of industries:
Automotive, Construction, Electronics,
Textiles, Packaging
• We are an integral part of our customers’
supply chains with most volumes
covered by contracts (COAs 75%)
• We handle more than 450 different
products, all with special handling
requirements, some hazardous and/or
dangerous to the environment
• Because of the broad range of products
and industrial nature of the trade,
earnings are more stable than the
commodity segment
• Demand drivers are Global Industrial
Production and GDP growth
• Global GDP growth, disappointingly at
2.4% in 2015 and expected to grow
slowly to 2.9% in 2016
Page 17
Electronics
Textile
Construction
Agricultural
Packaging
Automotive
38,000 DWT Newbuildings
Name
Page 18
Expected
Delivery
Stolt Pride
3Q16
Stolt Sincerity
4Q16
Stolt Integrity
4Q16
Stolt Tenacity
1Q17
Stolt Loyalty
2Q17
Stolt Excellence
4Q17
Outlook, Strategy and Opportunities
Market Outlook:
• 1Q16 better than expected due to continued low bunker cost while spot rates remained
stable
• We expect that this will continue throughout 2016
• Future bunker price increase is covered by surcharge clauses and hedges
• Outlook more uncertain beyond 2016 given the large orderbook
Strategy:
• Be the supplier of choice for core COA customers, focusing on Quality, Reliability and
Flexibility (QRF)
• Evaluate opportunities for consolidation
• Improve profitability by:
– Maintaining best-in-class operational and environmental performance
– Continue to focus on a competitive cost structure through shipowning and A&G savings
– Secure appropriate Chemical Tanker tonnage for 2018-2020 replacements
– Deploy new business intelligence tools that support improved business analysis and
margin improvement
Page 19
Stolthaven Terminals
New Orleans terminal, US
Page 20
Stolthaven Terminals
Figures in USD Millions
Operating Profit
Operating Revenue
90
250
80
200
70
60
150
50
40
100
30
20
50
10
0
2009
2010
2011
2012
2013
2014
2015
2009
1Q16
annualised
2010
2011
2012
2013
2014
2015
1Q16
annualised
2014
2015
1Q16
annualised
EBITDA
Utilisation and Annualised Turns
120
100
80
60
40
20
0
2009
Page 21
2010
2011
2012
2013
Worldwide Network of 20 Terminals
Locations
Stolthaven’s terminals are strategically located along the world’s major chemical shipping routes; with hub terminals on
all continents, Stolt is able to offer a cost effective basis for global chemical producers
Moerdijk
32,347 m3
16,000 m3
Dagenham
New Orleans
334,869 m3
136,300 m3
28,000 m3
Antwerp
Lingang
1,302,600 m3
135,671 m3
Ulsan
Houston
1,215,000 m3
571,926 m3
Australia (5 sites)
Westport
Santos
150,280 m3
147,550 m3
36,000 m3
133,727 m3
Singapore
Stolthaven Terminals
4.5 Million m3
Current Capacity
0.1 Million m3
Approved expansions
Page 22
237,300 m3
New Zealand (5 sites)
81,678 m3
7,000 m3
Stolthaven Owned Terminals Focus
• Since 2008 we have doubled capacity of
our wholly owned terminals to 1.6M
CBM, investing $1.0B
• The growth in capacity has exceeded
growth in volume causing lower
utilisation, therefore resulting in a lower
EBITDA, due to:
– Tanks out for maintenance and API
inspection in Houston
– Loss of customer contracts following
Hurricane Isaac in New Orleans
– Explosion in Lingang caused port
shutdown and loss of licence
Done!
Page 23
What We Are Doing?
Terminal
Actions / Achievements
• Change of Management
• Infrastructure improvement
• Integrate field operations with back office
• Expand jetty capacity
• Business process optimisation project
• Permits obtained for new jetty
• Improved jetty scheduling
• Improved ship/shore performance
• Barge jetty completed
• New Orleans
• Bring further tanks back online
• Pursuing new business to bring utilisation back up
• New customer contracts secured
• Utilisation approaching 90%
• Santos
• Expand product mix to reduce reliability on ethanol
• Cost cutting to counter high inflation
• Added caustic soda contract
• Utilisation up: 99%
• Singapore
• Pursuing new customers and new products
• Negotiations for new contracts
• Utilisation approaching 90%
• Australasia
• Complete expansions at cost; improve profitability
• Construction of Newcastle
jetty started
• Lingang
• Recovering operating license for the terminal
• Permits expected by end June
• Houston
Page 24
Outlook, Strategy and Opportunities
Market Outlook:
• Global demand for bulk-liquid chemical storage capacity is expected to remain strong
• Lingang port licence expected to be renewed in 3Q16
• Utilisation in Houston is improving slowly
Strategy:
• Focus on the ship-to-shore interface to reduce ships’ time spent in ports including
investments in Jetty capacity
• “Selective growth” via completing ongoing expansion projects, organic growth and
continue to look for acquisitions and greenfield projects
• Initiatives to address sustainable profitability, infrastructure improvements, and
operational excellence in Houston
• Identify under performing assets and implement specific action plans to improve
results, identify assets for potential divestiture
Page 25
Stolt Tank Containers
Page 26
Stolt Tank Containers
Figures in USD Millions
Operating Profit
Operating Revenue
600
80
500
70
60
400
50
300
40
30
200
20
100
10
-
2009
2010
2011
2012
2013
2014
2015
Fleet Development and Utilisation
40,000
2009
1Q16
annualised
90%
2010
2011
80%
30,000
70%
25,000
60%
80
20,000
50%
60
15,000
40%
10,000
30%
5,000
20%
20
10%
0
2013
2014
2015
1Q16
annualised
2014
2015
1Q16
annualised
EBITDA
120
35,000
2012
100
40
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16
Fleet
Page 27
Utilisation
2009
2010
2011
2012
2013
STC Global Network – Local Representation
China Offices:
Tianjin
Shanghai
Shenzen
China Depots:
Nanhui, Hangu,
Zhangjiagang
Korea Depots:
Busan,
Ulsan
Moerdijk, The Netherlands
Romford, UK
Hamburg, Germany
Istanbul, Turkey
Le Havre, France
Linden NJ
Vado Ligure, Italy
Kandla
Japan Depots:
Tokyo, Kobe,
Nagoya
Houston, Texas
Jebel Ali
and Dubai, UAE
Mexico City, Mexico
Bogota, Colombia
Mumbai,
India Laem Chabang,
Thailand
Saudi Arabia Depots:
Damman, Jubail
Singapore,
Jeddah
ROS
Taipei, Taiwan
Kaohsiung, Taiwan
Manila, The Philippines
Santos, Brazil
Sao Paulo, Brazil
Buenos Aires, Argentina
19 Depots
24 Offices
Page 28
Services Provided in Depots:
Cleaning
Statutory testing
Maintenance and repair
Tank heating
Melbourne, Australia
Wastewater management
Technical expertise and assistance
Emergency response
Tank storage
Stolt Tank Containers Market Situation
• The market is growing steadily as we
expand into new regions and continue to
convert cargoes from other modes
• Lower economic growth in China is
negatively impacting global activity
• Increased competition is putting
pressure on rates and margins
Shipments
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
• Focus is on growing utilisation and turns
per tank while maintaining margins per
move
• We will continue to develop our depot
network in order to improve the
turnaround of tanks
Page 29
Fleet
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Outlook, Strategy and Opportunities
Market Outlook:
• Worldwide demand is expected to remain buoyant as new regions open and volume is
converted from flexitanks, drums and tankers into tank containers
• Margin pressure due to oversupply of tanks in the market and smaller operators entering
the global market
• Systems and business technology will be critical for future success: efficiency
improvements / demand planning / yield management/supply chain data
• Customers will seek greater transparency of global supply chains and real time global
access (mySTCtanks.com)
Strategy:
• Expand our markets worldwide by capitalising on our global presence and use of
information technology to create scale and competitive advantage
• Grow our market position by leveraging our global network, product knowledge and
experience as well as the application of information technology and our dedication to
efficiency, safety and customer service
• Improve utilization by taking a more aggressive approach on pricing
• Expand and improve our global depots to lower costs of safely maintaining the fleet
Page 30
Stolt Sea Farm
Caviar
Turbot
Sole
Page 31
Stolt Sea Farm
Figures in USD Millions
Operating Revenue
Operating Profit
80
25
70
20
60
15
50
10
40
5
30
0
20
2009
2010
2011
2012
2013
2014
2015
1Q16
annualised
-5
10
-10
0
2009
2010
2011
2012
2013
2014
2015
1Q16
annualised
EBITDA excluding FV Adjustments
20
18
16
14
Picture?
12
10
8
6
4
2
0
2009
Sturgeon juveniles
Page 32
2010
2011
2012
2013
2014
2015
1Q16
annualised
Stolt Sea Farm
• Focused on land-based aquaculture that require extensive knowledge, ongoing
R&D, and technological expertise
• Market leader in the production of turbot, sole, sturgeon and caviar
• Solid fundamentals: wild catch continues to decrease, resulting in growth in
demand for farmed fish
• Annual production capacity of 5,400 tonnes of turbot, 900 tonnes of sole, 300
tonnes of sturgeon and 15 tonnes of caviar
• We are building the world’s first
industrial sized sole farm in Iceland;
expected to reach full capacity of
2,000 tons by 2018; first fish to
market sold in March 2015
• Net Asset Base of $135M with
planned capital expenditures of
$21M
• EBITDA of $34M by 2020
Page 33
Stolt Sea Farm Strategy
Market Outlook:
• Consolidated sales volumes in turbot and sole and increasing sales in America.
Decreasing offer in the market from our competitors
• Updated Estimated Turbot average prices at €8.3/kg, one euro above 2015 average
• Sole prices also trending up to €10.9/kg compared to average €10.4/kg in 2015
• New sales strategy in caviar, with bigger customer base and higher prices
• Operating Expenditures per kg under control, but still at high levels in our new sole
farm in Iceland
Strategy:
• Focus on the production of land-based aquaculture that require extensive knowledge,
ongoing research and development, and sophisticated technological expertise to be
successfully cultivated
• The development and management of complex land-based facilities is a key factor in
SSF’s ability to cost effectively farm these species in a healthy and environmentally
friendly manner
Page 34
Stolt-Nielsen Gas
Page 35
Stolt-Nielsen Gas
Stolt-Nielsen Gas (SNG)
Share holding: 2.3%
Golar LNG
100%
7.2%
AGHL
50%
Stolt-Nielsen LNG Holdings Ltd.
10%
50%
Stolt LNGaz
Golar Stolt JV Co
HIGAS S.r.L
• Stolt LNGaz
– Put on hold due to falling commodity prices
• Sardinia Project (HIGAS)
– First small-scale shipping, storage and distribution project
• Golar Stolt JV
– FRSU/small-scale distribution to stranded customers not connected to
pipeline grids
Page 36
LNG Investments
• Build a global business of small-scale regional LNG distribution projects,
focussing on terminals in strategic locations, serviced by a flexible fleet of
ships, which are underwritten by a committed base load demand
• Develop an integrated model to include sourcing of LNG, shipping to smallscale terminals (10,000 cbm – 30,000 cbm) and distribution from the terminals
via truck and ISO containers to the end user
• Explore potential projects in the Mediterranean, Caribbean, South America,
India, Indonesia, Africa and Canada
• Projects aimed at serving stranded-demand customers out of reach of
conventional pipeline gas; off-take agreements are currently in the 10-15 year
range with suitable counterparty credit
Page 37
Financials
Page 38
Net Profit
Figures in USD Millions
Quarter
Full Year
1Q16
4Q15
1Q15
2015
$63.5
$56.2
$49.7
$241.3
Tanker accelerated depreciation
Terminals accelerated depreciation, claims
Gain/ (Loss) on sale of assets
Restructuring expenses
US pension plan gain
Gains on AGHL transactions
Other
Operating Profit (as reported)
(6.9)
2.5
(1.3)
$57.8
(4.1)
(3.7)
(1.9)
(1.7)
(1.2)
$43.6
19.8
2.0
$71.5
(4.1)
(3.7)
(4.2)
(4.1)
19.8
3.0
(1.8)
$246.2
Net Interest Expense
FX Gain/(loss), net
Income Tax
Other
Net Profit
(26.1)
0.1
(3.1)
1.7
$30.4
(26.1)
1.1
1.8
0.8
$21.1
(23.6)
(0.2)
(9.0)
0.0
$38.8
(101.2)
0.4
(14.1)
1.9
$133.1
$115.1
$114.1
$100.6
$459.1
Operating Profit (before one offs)
EBITDA
a) EBITDA before fair value of biological assets, insurance reimbursements and other one-time, non-cash items
Page 39
Balance Sheet
Figures in USD Millions
Period ended
Cash and cash equivalents
Receivables
Other current assets
Total current assets
Figures in USD Millions (Except ratios)
Feb.29.16
$63
199
149
411
At the end of:
February 2016
Debt
Tangible Net Worth (TNW)
Debt:TNW
Property, Plant and Equipment, deposits
Investment in and advances to JV and
associates
Other non-current assets
Total non-current assets
Total assets
ST bank loans
Current mat. of LT debt and fin. leases
Accounts payable and accruals
Other current liabilities
Total current liabilities
LT debt and finance leases
Other non-current liabilities
Total non-current liabilities
Total liabilities
Shareholders equity
Total liabilities and SH equity
Page 40
2,758
EBITDA / Interest expense
479
208
3,445
$3,856
23
323
290
176
$811
1,400
311
1,711
$2,522
$1,334
$3,856
Cash
Unused committed available credit lines
$1,745
$1,568
1.11:1
4.41:1
$63
$396
•
75.4% fixed / 24.6% variable interest rate at
February 29, 2015
•
Average interest rate of 4.95% at February 29,
2016
•
2Q16 interest expense expected to be
approximately $28M
•
Subsequent Financing events:
-
STC Sale Leaseback - $131M
-
Refinancing of Stolt Groenland and Stolt
Norland - $110M
Capital Expenditures Programme of $0.8B
Figures in USD Millions
Figures in USD Millions
Actual
Projections
1Q16 2Q-4Q16
2017
2018
2019
2020
$5
$7
Stolt Tankers
$35
$262
$136
$20
Stolthaven Terminals
24
50
130
123
45
Stolt Tank Containers
14
39
2
Stolt Sea Farm
1
6
26
Stolt Bitumen Services
0
1
-
SNL Other
1
10
$75
$448
Total
Total
-
29
-
5
-
33
-
6
-
$430
361
41
6
-
49
1
10
$287
$70
$40
$46
$892
The Chinese newbuildings (5x38,000 dwt fully stainless steel) have been financed with a
$292M facility; drawdown is on delivery; In addition we have financing for some of the
terminal capital expenditures
Capital Expenditures Programme includes business acquisitions, newbuilding deposits, contributions in Joint Ventures and Associates
and does not include capitalised interest
Page 41
ver
Debt Maturity Profile
Figures in USD Millions
$500
Refinancing SNI01 ($300M bond maturing in June 2016):
• We have liquidity available to pay it off on maturity (Liquidity available as of
Jun.01.16: ~ $630M)
$400
$300
$200
$100
$0
2016
2017
Amortization of senior debt
2018
2019
Balloon payments
2020
Bonds
2021
2022
Revolver
Notes:
1. 2016 includes only the remaining of the year
2. The balloon payment of $129M originally scheduled for 2018 has been rolled into the revolving credit facility, which is expected to be
refinanced in September 2016
Page 42
Unencumbered Assets
Figures in USD Millions
Unencumbered ships
Mar.30.16
$
29
Moerdijk terminal
41
Dagenham terminal
55
New Orleans terminal
Total Unencumbered Assets
$
272
$
190
Potential 11 Ships leaving RCF in 2017 (build 92 & 93) at 50% $
(30)
Finance capacity for unencumbered assets including
11 Ships leaving RCF basis 50%
161
Finance capacity for unencumbered assets basis 70%
Page 43
147
$
Financing Projects
In addition to the existing liquidity, which is sufficient to pay off the bond
maturing in June, we are working on the following funding projects:
• Renewal of the Company’s Revolving Credit Facility with a new
$650M revolving facility – in progress
• $131M sale leaseback transaction for 9,200 tank containers closed on
May.20.16
• $110M refinancing of Stolt Groenland and Stolt Norland (43,000
DWT); closed on May.20.16; first tranche on Jun.01.16 and second
tranche at the end of July
• We have started discussions on sale & leaseback of three older ships;
target amount is approximately $90M
• Refinancing of two N43s and Singapore terminal financing expected
to start August 2016
Page 44
Financial Performance
• Continued strong performance with 1Q16
net profit of $30.4M and EBITDA of
$115.1M
• Solid performance in tankers; steady tank
container results in a competitive market;
fundamentals in terminals remain solid
• 1Q16 annualized EPS of $2.21;
*P/E ratio of 5.17; *P/NAV of 0.47
• Current dividend yield of 7.1% basis $1
per share and a share price of NOK 115
• Good liquidity position with ample
availability through our revolving credit
line and cash on hand; capex is partly
funded
*Share price of SNL is as of Apr.05.16 of NOK 95.25/share
Page 45
Key Takeaways
• Group performance and cash flow continue to be strong on the back of the
reasonably strong tanker market supported by continued low bunker costs
• SNL already has sufficient liquidity to pay off the $300M bond that is maturing
in June 2016
• A turnaround at Stolthaven Terminals has begun and we expect to see small,
gradual improvements each quarter this year; ongoing actions to increase
utilisation and enhance profitability and performance are not expected to fully
impact results until 2017
• We are working to improve utilisation in tank containers to counter the margin
squeeze
• Our entry into the LNG sector will be based on confirmed long-term customer
off-take agreements - this will take time
Page 46
For more information please visit our website:
www.stolt-nielsen.com
Page 47