Slide 1: Navigating challenging markets
Navigating challenging markets Q2 2024 investor call, 14 August 2024
Slide 2: Q2 2024 investor call agenda
Q2 2024 investor call agenda • Strategy update • Q2 overview • Moving to Green • Capital distribution • Outlook & priorities 2
Slide 3: Moving Together Towards 2030 – Moving to green
Moving Together Towards 2030 – Moving to green Moving Together Towards 2030 Unlock network value, 2024-2026 • Protect & Grow Profits • Standardise to simplify • Digitise to transform • Moving to green • Be a great place to work Green transition, 2024-2030 • 45% reduction in ferry emission intensity
Slide 4: Financial ambitions 2024-2026/27
Financial ambitions 2024-2026/27 • Group Q2 LTM ROIC at 6% • Q2 capex as expected • Q2 adjusted free cash flow of • Q2 2024 NIBD/EBITDA reduced DKK 0.7bn to 3.1x from 3.2x in Q1 2024 • Ferry at 8% - North Sea above • Capex 2024 outlook reduced to ambition, Baltic/Channel DKK 1.5bn from DKK 1.75bn •
Slide 5: Navigating challenging market environments
Navigating challenging market environments Challenging Q2 Markets set to remain Cash flow outlook Strategy – unlock value of challenging in H2 maintained expanded network Organic growth of 3% despite challenging European growth rebound Top priority to deliver on Organic growth ambition markets expec
Slide 6: EBIT reduced by market headwinds & cost dynamics
EBIT reduced by market head- DKK m DFDS Group - Q2 EBIT winds & cost dynamics 2024 519 2023 718 2022 841 2021 406 • Group Q2 revenue up 9% and up 3% adjusted for acquisitions and bunker/ETS 2020 91 0 100 200 300 400 500 600 700 800 900 • Q2 EBIT of DKK 519m decreased 28% due to lower results in both
Slide 7: Q2 2024 income statement
Q2 2024 income statement • Revenue growth of 9% detailed on next DFDS Group, DKK m Q2 23 Q2 24 Δ Δ slide Revenue 6,942 7,580 638 9% EBITDA 1,370 1,232 -137 -10% • EBITDA decreased 10% or DKK 137m Margin 19.7% 16.3% -3.5% following lower results in both the Ferry Division and the Logistics Division O
Slide 8: 3% organic revenue growth in Q2
3% organic revenue growth in Q2 Change in revenue, Q2 2024 vs Q2 2023 DKK m • Freight ferry on level with 2023 excluding BAF/ETS – volume growth 7,600 offset by rates -27 338 • Passenger up DKK 98m driven 7,350 primarily by Channel • Logistics up 4% from Nordic and UK&I 127 – Continent reduced 7,100
Slide 9: Ferry Division – key positions protected
Ferry Division – key positions DKK m Ferry Division - Q2 EBIT vs LY protected 650 600 -113 8 550 641 25 -49 • Freight Ferry EBITDA down 8% or DKK 60m excluding DKK 54m decrease in oil spread 500 -5 hedging income. Organic decrease driven 508 by rate pressures and adverse cost 450 development Q2 2023
Slide 10: Logistics Division – mixed results in challenging quarter
Logistics Division – mixed DKK m Logistics Division - Q2 EBIT vs LY results in challenging quarter 150 125 -56 • EBITDA organic decrease of DKK 56m 100 146 3 9 driven by 20% of revenue with margin -21 3 pressure, shift in trade flows, and Nordic 75 Cold Chain underperformance 85 50 • EBITDA for rema
Slide 11: Cash flows & capital
Cash flows & capital • Operating cash flow up 32% to DKK 1.3bn DKK bn Q2 2023 Q2 2024 Δ Δ Q2 LTM 2024-23 driven by positive working capital impact Cash flows Operating cash flow 1.0 1.3 0.3 32% 3.5 • Operating capex of DKK -0.3bn as expected Capex Operating capex -0.2 -0.3 -0.1 50% -1.7 Ferries* 0.0
Slide 12: Moving to Green
Moving to Green 12
Slide 13: Continued progress on green and social targets
Continued progress on green and social targets • Ferry CO2 emission intensity reduced 3% for own fleet and 2% across route network •• Ferry CO2 Channel emission intensity electrification reduced of – first deployment 5% across route expected battery ferries network in by2023 2029 • Every Minute Gree
Slide 14: Capital distribution, outlook & priorities
Capital distribution, outlook & priorities 14
Slide 15: Total capital distribution of DKK 600m on track
Total capital distribution of DKK 600m on track • Capital distribution total of Distribution to shareholders, DKK m 2022 2023 2024 DKK 600m equal to DKK 10.67 per Dividend per share, DKK 8.00 5.00 3.00 share (ex. own shares) Dividend, ex. treasury shares 462 286 168 Buyback of shares 0 300 431 • Div
Slide 16: Outlook 2024 – more challenging year than previously expected
Outlook 2024 – more challenging year than previously expected • European growth rebound not expected before Q4 • Freight ferry rate pressure expected to continue in H2 • Road transport margin pressure expected to ease in H2 as haulage overcapacity started to reverse end Q2 • Passenger market overall
Slide 17: Cash flow outlook unchanged, EBIT range lowered
Cash flow outlook unchanged, EBIT range lowered • Revenue growth outlook of 8-11% DKK m Outlook 2024 Previous outlook 2024 2023 unchanged – includes expected addition of Ekol Logistics end Q3 Revenue growth 8-11% 8-11% 27,304 EBIT 1,700-2,100 2,000-2,400 2,326 • EBIT outlook range lowered to DKK 1.7
Slide 18: Key priorities for H2 2024 – protect & deliver
Key priorities for H2 2024 – protect & deliver • Organic growth focus - protect key ferry market positions, add enterprise accounts, fill warehouses • Turn Logistics’ earnings trend around – price/cost, Nordic Cold Chain • Green transition – continue to deliver on short- and long-term targets • Stra
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