DFDS A/S · OMXCOP:DFDS
DFDS A/S — FY2014 Earnings Presentation
14 slides from DFDS A/S's earnings presentation, Feb 25, 2015
Slide 1: Continuous Improvement: Q4 & Year-End 2014
1 CONTINUOUS IMPROVEMENT Q4 & YEAR-END 2014 25 February 2015 Copenhagen
Slide 2: Contents
CONTENTS • Overview • Q4 2014 • Full-year 2014 • Outlook 2015 • MGO transition • Capex • Capital structure and distribution • Strategy, goals and priorities The statements about the future in this announcement contain an element of risk and uncertainty, both in general and specific terms, and this m
Slide 3: 2015 Performance Set to Improve Further Based on Solid 2014
2015 PERFORMANCE SET TO IMPROVE FURTHER BASED ON SOLID 2014 • DFDS is well positioned to improve on the solid financial and operational performance in 2014 • 2015 EBITDA outlook increased to DKK 1.55-1.65bn (DKK 1.43bn in 2014) • We are committed to our path of continuous improvement in areas of cus
Slide 4: Q4 2014 – EBITDA Up by 14%
EBITDA before special items, Q4 Q4 2014 – EBITDA UP BY 14% DKK m 400 Margin: 10.3% 350 Margin: 9.2% • Profit improvement of last two quarters 300 continued in Q4, although at a lower pace, 250 some impact from extended Christmas break 200 268 284 150 • Benefit from lower bunker costs and closure 100
Slide 5: Q4 2014 in Numbers
Q4 2014 IN NUMBERS • Revenue up by 2%: DKKm Q4 14 Q4 13 ∆ ∆% • One-ship operation on Channel in December REVENUE 3,059 2,994 64 2.1 • Higher charter activity Shipping Division 284 268 16 6.0 • Shipping Division up by 3% adjusted for Logistics Division 58 46 12 26.1 route closures • Logistics Divisio
Slide 6: Solid FY 2014 Driven by Growth & Higher Efficiency
SOLID FY 2014 DRIVEN BY GROWTH & HIGHER EFFICIENCY • Revenue up by 6%, EBITDA up by 18% • Increased capacity utilisation of routes and ports EBITDA before special items, FY 2014 achieved in North Sea DKK m • Baltic network adapted to new market situation in 1,650 Russia Margin: 11.2% 1,450 Margin: 1
Slide 7: FY 2014 in Numbers
FY 2014 IN NUMBERS DKKm 2014 2013 ∆ ∆% REVENUE 12,779 12,097 682 5.6 • Revenue up 3% up adjusted for EBITDA BEFORE SI 1,433 1,213 221 18.2 acquisitions margin, % 11.2 10.0 1.2 n.a. P/L associates 25 -6 31 n.a. • Organic revenue drivers: higher shipping Sale of assets 9 6 3 43.8 freight and passenger
Slide 8: Outlook 2015: Performance Set to Improve Further
OUTLOOK 2015: PERFORMANCE SET TO IMPROVE FURTHER • European economic growth expected to Outlook 2015: gain momentum in 2015 as… • Revenue up by around 3%, and • …ECB monetary measures and lower oil up by around 5% adjusted for price expected to support higher demand route closures and acquisitions •
Slide 9: 2015: Major Performance Drivers
2015: MAJOR PERFORMANCE DRIVERS Likely Expected Uncertain Macro drivers • Positive impact • Resolution of • Level of • Russian market from closed structural competitive demand routes overcapacity in pressure Channel • Procurement • Volume growth, • Changes in oil efficiencies & freight and price and
Slide 10: Smooth MGO Transition So Far
SMOOTH MGO TRANSITION SO FAR • Transition mitigated by drop in oil price Oil price 130 and thorough preparations 120 • So far limited modal backshift 110 experienced 100 • Full and uniform MGO BAF model USD per barrel 90 introduced across freight route network covering more than 85% of consumption 8
Slide 11: Capex Outlook
CAPEX OUTLOOK Capex 2010-2014 • Capex of DKK 650m expected for 2015: • Dockings & ship upgrades, DKK 150m 1800 • Scrubbers, DKK 275m 1600 1,521 • Cargo carrying equipment, warehouses, 1400 DKK 125m 1200 1,069 • Other, including IT, DKK 100m 943 1000 DKK m 800 • Future capex plans include: 650 600 •
Slide 12: Increase in Distribution to Shareholders
INCREASE IN DISTRIBUTION TO SHAREHOLDERS • DKK 472m distributed to shareholders in 2014 Distribution to shareholders, DKK m 2014 2013 2012 Dividend proposed per share, DKK 18 14 14 • Increase in free cash flow expected in Dividend paid ex. treasury shares 177 203 203 Buy-back of shares 295 628 0 201
Slide 13: Strategy, Goals and Priorities
STRATEGY, GOALS AND PRIORITIES DFDS’ strategy drivers: Priorities 2015 • The DFDS Way: Customer focus and continuous improvement 1. Customer focus • Network strength: Expand to leverage operating model 2. Efficiency and improvement • Integrated shipping and logistics operations: projects Utilisation
Slide 14: Continuous Improvement
CONTINUOUS IMPROVEMENT Q&A 25 February 2015 Copenhagen