Q3 2015 results

11 November 2015

Teleconference

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Safe Harbor Statement

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 to NASDAQ OMX Copenhagen.

The presentation may include statements and illustrations concerning risks, plans, objectives, goals, strategies, future events or

performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking

statements in this presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions,

including without limitation, TORM's examination of historical operating trends, data contained in our records and other data available from

third parties. As many of these factors are subject to significant uncertainties and contingencies which are difficult or impossible to predict

and are beyond our control, TORM makes no warranties or representations about accuracy, sequence, timeliness or completeness of the

content of this presentation.

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Today’s presenters

Jacob Meldgaard

▪ CEO of TORM since April 2010

▪ Previously Executive Vice President of the Danish shipping company NORDEN where he was in charge of the company’s dry cargo division

▪ Prior to that he held various positions with J. Lauritzen and A.P. Møller-Mærsk

▪ More than 20 years of shipping experience

Mads Peter Zacho

▪ CFO of TORM since September 2013

▪ Previously CFO of Svitzer

▪ Prior to that held various positions with A.P. Møller-Mærsk, Nordea and IFC

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Highlights for Q3 2015

Q3 2015

Results

Tanker

Dry bulk

Guidance

• The product tanker freight rates across segments has been USD/day ~26,000 in Q3 which are the

highest freight rates earned since 2008

• The Tanker segment reported a gross profit of USD 104m in Q3 2015 (PF USD 114m)

• Planned wind-down of dry bulk activities completed with redelivery of last T/C-in vessel and sale of our

last two Panamax vessels

• TORM’s dry bulk segment reported a gross result of USD -1m for Q3

Corporate

events

• The new Restructuring Agreement was implemented on 13 July 2013 giving TORM strategic and

financial flexibility

• New ownership structure and Board in place

• TORM has secured undrawn financing of USD 67m for the first three MR newbuildings and undrawn

financing of USD 26m for two of the second-hand MR vessels mentioned above

• Full year 2015 guidance is an EBITDA of USD 200 - 220m and a PBT of USD 115 - 135m

• Pro forma guidance, reflecting the combined fleets’ full year performance, is an EBITDA of USD 310 –

330m and a PBT of USD 185 - 205m

S&P (Tanker)

• During Q3, TORM purchased three modern second-hand MR vessels (2007, 2010 and 2012 built) for a

total consideration of USD 80m

• The value of TORM’s product tanker fleet increased by USD 77m (~5%) during Q3

USDmReported

Q3 2015

Pro forma

Q3 2015

Pro forma

Q3 2014

Pro forma

Q1-Q3 2015

EBITDA 96 105 26 257

Profit before tax 65 81 -4 169

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Product tanker freight rates continued at strong levels

Source: Clarksons. Spot earnings: LR2: TC1 (Ras Tanura-> Chiba), LR1: TC5 (Ras Tanura-> Chiba) and MR: average basket of Rotterdam->NY, Bombay->Chiba, Mina

Al Ahmadi->Rotterdam, Amsterdam->Lome, Houston->Rio de Janeiro, Singapore->Sidney.

Freight rates in ‘000 USD/day

East (Q3 2015)

• The LR market benefitted from the ramp-up of

refinery capacity in Saudi Arabia and the UAE

• The Far East exported large volumes of gasoil to

West Africa and north-western Europe

• Declining freight rates for dirty trading led LR2s

to switch back into the clean market

West (Q3 2015)

• Freight rates driven by high European refinery

margins yielding export volumes to West Africa

• Considerable European export of gasoline to the

US East Coast due to US demand and capacity

restrictions

• The refineries in the Mexican Gulf area had high

exports to South and Latin America

• High naphtha flows from West to East in

July/Aug

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TORM has significant operating leverage in an structurally

improving product tanker market

Fleet Spot Days

5783,956 4,015826

2015 Q4 2016 2017

5,631

3,692536

28,922

19,161

2,5453,260

28,943

18,723

2,5553,650

HandyLR2 LR1 MR

Illustrative change in cash flow generation potential for the TORM Fleet

∆ Average TCE/day 2015 Q4 2016 2017

USD 2,000 11.3 57.8 57.9

USD 1,000 5.6 28.9 28.9

USD (1,000) (5.6) (28.9) (28.9)

USD (2,000) (11.3) (57.8) (57.9)

USDm

# of spot days

Spot, % 84% 99% 100%

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Peer comparison shows that TORM has continued to perform

commercially despite financial difficulties and an older fleet

Notes:

• Peer gorup is based on Ardmore (split by ECO and ECO-modified); d’Amico, Frontline 2012, Norden, BW, Teeday Tankers and Scorpio

• Q3 2015 figures are missing Frontline, BW and d’Amico

USD/day

0

5.000

10.000

15.000

20.000

25.000

30.000

Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

MR - Total reported TCE

Peer Hi-Lo TORM PF spot Peer avg

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Pro forma OPEX is trending downwards

7,500

9,500

9,000

6,500

8,500

7,000

0

8,000

USD/operating day

Handysize

LR2

MR

LR1

Q3 15Q2 15Q1 15Q4 14Q3 14

Y-o-Y

change

-13%

-18%

-10%

-13%

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TORM has a fully integrated business model and admin

expenses are trending significantly down

TORM has maintained a fully

integrated business model…

0 2 4 6 8 10 12 14 16 18 20 22 24

-19%

-54%2015 Q1-3

proforma

2014

2013

2012

2011

2010

2009

2008

… and TORM’s cost program has trimmed admin expenses

significantly

Admin. expenses (quarterly avg. in USD m)

• TORM has a fully integrated

business model to obtain the

highest possible

‒ trading flexibility

‒ earning power

• TORM manages

‒ ~80 vessels commercially

‒ ~75 vessels technically

• Global reach ensures proximity to

customers

• Outsourced technical and

commercial management would

affect other line items of the P&L

• Average admin cost per earning

day is below 1,500 USD

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Forecasted EBITDA for the combined company in the range of USD 200m

- USD 220m for FY2015

Earnings

sensitivity Q4

2015

EBITDA

(USDm)

Change in freight rates (USD/day)

Segment -2,000 -1,000 1,000 2,000

Tankers (USDm) -11 -6 6 11

EPS per shares (USD) -0.18 -0.09 0.09 0.18

* Applying 63.8m shares

** The financial results for 2015 will reflect Oaktree activities in the period from January 2015 until completion of TORM’s Restructuring (13 July 2015) and the combined entity from completion of

TORM’s Restructuring until 31 December 2015

*** Pro forma figures prepared as though the Restructuring occurred at 1 January 2014 and include the combined TORM and Oaktree fleet

Profit before

tax (USDm)

EPS* (USD)

1 January – 30 June

(Oaktree)

Full-year

(Combined)**

53 200 – 220

35 115 – 135

Pro forma guidance

(Combined)***

310 – 330

185 – 205

1.8 – 2.1 2.9 – 3.2

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TORM has has a fully funded newbuilding program with a favourable

financing profile

Ample headroom under

our attractive covenant

package:

Loan-to-Value

(depending on facility)

Minimum liquidity:

USD 50m*

Minimum book equity

ratio: 25% (adjusted

for market value of

vessels)

Debt repayments do not include any potential cash sweep under TORM’s loan facilities. ** Of which USD 20m must be cash or cash equivalents

425155

801708

2016 20182017Q4 2015

(incl bulk

sale)

49

57

2019

93

Total

debt

Debt as

30 Sep.

2015

16 23

Future

secured

draw

down

2020 Hereafter

75

189

9280

2015

17172

2016 Total

NB

SH 168

338

170

Total available

liquidity

Cash position Available

debt facility

Capex commitments Available liquidity

Capex and Liquidity (USDm)

TORM is well

positioned to service

future CAPEX and debt

commitments

Scheduled debt repayments (USDm)

100% 2% 3% 6% 9% 19% 7% 53%