Slide 1: DFDS Group Q3 2018
GUIDANCE ABOVE DKK 3BN REAFFIRMED DFDS GROUP Q3 2018 13 November 2018
Slide 2: Contents
Contents • Overview • Q3 numbers • Cash flow and capital structure • Mediterranean • Outlook 2018 • Priorities The statements about the future in this announcement contain risks and uncertainties. This entails that actual developments may diverge significantly from statements about the future. 2
Slide 3: Acquisitions drive Q3 improvement as Brexit slows growth
Acquistions drive Q3 improvement as Brexit slows growth • DFDS Group revenue up 12% and EBITDA Q3 EBITDA before special items up 7% to DKK 1,045m in Q3 DKK m • EU-Turkey market stabilised, except 2018 1,045 Mersin region 2017 976 • Slowdown in UK trading in Q3. Uncertainty linked to Brexit outcome i
Slide 4: Currently some headwind but sound platform
Currently some headwind but sound platform • Brexit concerns slowed market growth in northern Europe in Q3 • As a result, freight volumes on DFDS routes to and from UK were lowered • Businesses and consumers require clarity on Brexit for growth to continue • New Mediterranean route network linking E
Slide 5: Q3 2018 EBIT flat as depreciations increase
Q3 2018 EBIT flat as depreciations increase Change Change • 12% revenue growth driven mainly by DKK m Q3 18 Q3 17 vs LY % UNRR REVENUE 4,383 3,922 461 12% EBITDA BEFORE SI 1,045 976 69 7% • EBITDA up 7% to DKK 1,045m driven by margin, % 23.8 24.9 -1.0 n.a. UNRR as Northern European freight P/L assoc
Slide 6: UK-linked business units impacted by Brexit concerns
UK-linked business units impacted by Brexit concerns • North Sea -28m: 1.9% lower volumes driven by Brexit slowdown and dip in automotive Q3 2018 DFDS Group EBIT development vs LY volumes. Negative SEK impact DKK m • Baltic Sea -4m: Higher pax contribution 770 partly offset lower freight earnings -1
Slide 7: Increased cash flow drives deleveraging
Increased cash flow drives deleveraging DKK m Q3 2017 Q3 2018 ∆ ∆% • Operating cash flow increased 9% EBITDA 976 1,045 69 7% Working capital & adjustments -112 -85 26 -24% • Free cash flow increased 10%, Taxes -3 -18 -14 n.a. including investments of DKK 234m Operating cash flow 861 942 81 9% mainly
Slide 8: Mediterranean – impact of TRY depreciation on finance items
Mediterranean – impact of TRY depreciation on finance items • TRY-depreciation is linked to high TRY/DKK inflation rates in Turkey: 1.45 • 2016: 8% • 2017: 11% 1.40 • 2018: Oct ~ 25% 1.35 • Turkey’s real GDP growth estimated 1.30 Q3: -24% Oct: +13% to become negative in H2 after 1.25 growth of 7% an
Slide 9: Robust Mediterranean volume development
Robust Mediterranean volume development Mediterranean (ex. Marseille-Tunis) • YTD* volumes: LM '000 +3.0% 340 • Q3 volumes: -0.8% 320 • Volumes consistently 300 above 2017 until July 280 • TRY depreciation and extended holiday 260 lowered volumes in August 240 220 • Rebound to above 2017 in Septembe
Slide 10: EBITDA outlook 2018 narrowed to DKK 3.0-3.1bn
EBITDA outlook 2018 narrowed to DKK 3.0-3.1bn • European real GDP growth slowed in Q3, now expected just below 2% OUTLOOK 2018 in 2018 • Revenue growth of around 10% • Slowdown in UK market lowered • EBITDA range of DKK 3,000-3,100m freight demand in Q3 (2017: DKK 2,702m) • Shipping Division: DKK 2,
Slide 11: Current priorities
Current priorities • Preparing for Brexit transition • Customer satisfaction – grow the topline • Continue push for efficiency improvements • Improve performance of Passenger business unit • Integration of U.N. Ro-Ro • Realise our next steps in digital strategy • Deployment of two freight new buildi
Slide 12: Q&A
Q&A . 12