Slide 1: Growth set to continue in 2019
GROWTH SET TO CONTINUE IN 2019 DFDS GROUP Q4 & FY 2018 7 February 2019
Slide 2: Contents
Contents • Overview • Q4 and FY numbers • Market prospects • 5 performance drivers • Capital structure • Outlook 2019 • Priorities The statements about the future in this announcement contain risks and uncertainties. This entails that actual developments may diverge significantly from statements abo
Slide 3: Growth set to continue on the back of record 2018
Growth set to continue on the back of record 2018 DKK bn Revenue • Revenue up 10% in a busy 2018 and EBITDA 18 16 up 11% to DKK 3.0bn (DKK 3.6bn restated 14 for IFRS 16*) 12 10 8 • EBITDA up 20% to DKK 688m in Q4 2018 6 4 2 • Revenue and earnings set to continue to 0 2014 2015 2016 2017 2018 grow in
Slide 4: 20% Q4 EBITDA increase
20% Q4 EBITDA increase Change Change DKK m Q4 18 Q4 17 vs LY % • 13% revenue growth mainly driven by UNRR REVENUE 3,955 3,497 458 13% EBITDA BEFORE SI 688 574 114 20% margin, % 17.4 16.4 1.0 n.a. • EBITDA up 20% to DKK 688m mainly P/L associates -3 0 -3 n.a. driven by UNRR as northern European Gain/
Slide 5: 11% EBITDA increase in 2018
11% EBITDA increase in 2018 Change Change DKKm 2018 2017 vs LY % • 10% revenue growth mainly driven by UNRR REVENUE 15,717 14,328 1,389 10% EBITDA BEFORE SI 2,988 2,702 286 11% margin, % 19.0 18.9 0.2 n.a. • EBITDA up 11% to DKK 3.0bn mainly P/L associates 1 6 -5 -86% driven by UNRR and 26% increase
Slide 6: Mediterranean main EBIT driver in Q4 2018
Mediterranean main EBIT driver in Q4 2018 Q4 2018 DFDS Group EBIT development vs LY • North Sea +9m: Lower operating costs DKK m offset 2.3% lower volumes 440 430 4 • Baltic Sea -7m: Freight earnings 420 -28 impacted by engine breakdown 410 10 • Channel -3m: Some loss of ferry 400 -1 market share du
Slide 7: TRY crisis behind us and new invoicing model introduced
TRY crisis behind us and new invoicing model introduced • Currency loss on TRY/DKK – 2018-19 customer receivables in 1.70 Finance of DKK 42m in 2018 from TRY 1.60 depreciation 1.50 Q4: +17% • New invoicing model 1.40 introduced per beginning 2019 1.30 • Incentives offered for 1.20 payment in euros,
Slide 8: Mediterranean volumes dropped end of Q4, rebound in January
Mediterranean volumes dropped end of Q4, rebound in January • FY* volumes: +0.3% Mediterranean volumes LM '000 • Q3 volumes: -0.8% 340 • Q4 volumes: -7.1% 320 300 • France volumes impacted by yellow vests in 280 December 260 • Extended Xmas and New Year break in Europe 240 lowered volumes in Decembe
Slide 9: North Sea volumes aligned with European growth
North Sea volumes aligned with European growth North Sea, volumes • FY volumes: +1.0% LM '000 • Q4 volumes: +0.9% 1,000 950 • H1 volumes up 1.2%. Growth slowed to 900 0.5% in Q3 850 • Extended Xmas and Q3 slowdown New Year break 800 Easter timing difference lowered volumes in December 750 700 • Janu
Slide 10: Dividend proposed resumed in 2019
Dividend proposed resumed in 2019 NIBD/EBITDA • Dividend proposed resumed with 3.5 DKK 4.00 per share 3.0 2.9 2.8 • Free cash flow lowered by 2.5 2.7 acquisitions of DKK 3.6bn 2.0 Times 1.5 • Free cash flow increased 23% excluding acquisitions of 1.0 0.9 0.9 DKK 3.6bn 0.5 0.0 • NIBD/EBITDA-multiple
Slide 11: 5 key performance drivers for 2019
5 KEY PERFORMANCE DRIVERS FOR 2019 . 11 11
Slide 12: 1A. Full-year impact of UNRR acquisition
1A. Full-year impact of UNRR acquisition . 12
Slide 13: 1B. New cooperation with Ekol Logistics
1B. New cooperation with Ekol Logistics . 13
Slide 14: 2. Well prepared for Brexit + UK DfT ferry capacity contract
2. Well prepared for Brexit + UK DfT ferry capacity contract First one now afloat . 14
Slide 15: 3. Three new freight ferries to strengthen route network in 2019
3. Three new freight ferries to strengthen route network in 2019 First one now afloat . 15
Slide 16: 4. Digital business projects to go live
4. Digital business projects to go live 16
Slide 17: 5. DKK 100m from improvement and efficiency projects
5. DKK 100m from improvement and efficiency projects . 17
Slide 18: Market growth prospects 2019
Market growth prospects 2019 Euro Zone 3% 2% 1.9% 1.5% 1.5% 2% Visibility on Europe’s growth prospects 1% below ‘normal’ 1% 0% 2018 2019 2020 • Brexit outcome still not clear United Kingdom 2% 1.5% • Global and European growth outlook 2% 1.3% 1.3% trending down, although still positive 1% 1% 0% • Eu
Slide 19: Outlook 2019 – growth set to continue
Outlook 2019 – growth set to continue • ‘Soft’ Brexit likely to support growth and add upside OUTLOOK 2019 • Revenue growth of 10-12% • ‘Hard’ Brexit scenario somewhat mitigated by own preparations and • EBITDA range of DKK 3,800-4,000m DfT contract (2018: restated DKK 3,589m) • Ferry Division: DKK
Slide 20: Priorities going into 2019
Priorities going into 2019 • Adapting to market changes • Mediterranean • Delivering on our 5 DFDS growth performance drivers • Prepared for Brexit • As always, Customer Satisfaction • New freight ferries – grow the topline • Digital goes live • Pursue value-creating M&A and • Improvement and invest
Slide 21: Q&A
Q&A . 21