Slide 1: Outlook raised by strong Q3
Outlook raised by strong Q3 Q3 2022 RBC investor call 21 November 2022
Slide 2: Uniquely reliable European transport network for trailers and car passengers
Uniquely reliable European transport network for trailers and car passengers On wheels, fast, versatile, dry & cold, trailer conversion Goods suitable We move Ferry infrastructure for transport in trailers trailers & logistics & cars combined People in cars 2
Slide 3: Our key customer offerings
Our key DFDS’ customer business offerings model builds on 3 core activities Ferry routes Door-door solutions Contract logistics For dry goods and cold chain For dry goods and cold chain Catchment area A Pickup point Port terminal A Port terminal A Freight & passengers Port terminal B Port terminal B
Slide 4: DFDS' ferry and logistics network
DFDS’ ferry and logistics network • DKK 25bn revenue* • DKK 4.8-5.0bn EBITDA* • 11,300 employees • 26 routes – incl. 9 passenger routes • 8 port terminals • 60+ logistics locations *Outlook 2022 4
Slide 5: DFDS structure, ownership and earnings split
DFDS structure, ownership and earnings split DKK bn Revenue per division 28 DFDS Group 3 23 Ferry Division Logistics Division 18 1 13 Eliminations and other 3 13 1 Ferry Division, passenger 11 • North Sea • Dry Goods 9 Ferry Division, freight • Baltic Sea 10 • Cold Chain 8 Logistics Division • Chann
Slide 6: Business units – EBITDA, invested capital and ROIC, 2022 Q3 LTM
Business units – EBITDA, invested capital and ROIC, 2022 Q3 LTM North Sea Mediterranean Logistics* Channel Baltic Sea Passenger EBITDA, DKK bn 1.5 1.2 1.0 0.6 0.4 Invested 0.0 capital, DKK bn 6.2 9.2 4.5 2.2 2.1 0.8 ROIC 14% 7% 8% 9% 11% neg. *FY pro forma with HSF Logistics Group 6
Slide 7: DFDS strategy
DFDS strategy • Automotive • Easy access for • Mediterranean • Develop on • Climate Action Plan customers business plan board customer • Develop green • Forest & Metal • Value-adding fulfillment experience transport corridors • Cold Chain services • Ferry new building • Business • Operational benefi
Slide 8: DFDS Climate Action Plan – climate neutral in 2050
DFDS Climate Action Plan – climate neutral in 2050 8
Slide 9: E-trailers deployed in Denmark
Q3 2022 • Cold Chain trailers for perishable goods • 3 trailers operated with Danish Crown E-trailers deployed in Denmark • • No CO2 or particle emissions Less noise 9
Slide 10: Strong Q3 moves ROIC above 8% target & leverage back in target range
Strong Q3 moves ROIC above 8% target & leverage back in target range • Freight ferry Q3 demand held steady Q3 revenue up Earnings raised significantly EBITDA, LTM Q3 64% as growth picture becomes more DKK bn mixed 5.0 1.0 • Logistics EBITDA at DKK 1bn for Q3 to DKK 7.2bn 4.0 last-twelve-months (LTM)
Slide 11: Q3 EBITDA boosted by passenger recovery and improved logistics result
Q3 EBITDA boosted by passenger recovery and improved logistics result • DFDS Group revenue up 64%; EBITDA DKK m Q3 EBITDA before special items up 88% to DKK 1.59bn 2022 1,591 2021 848 • Ferry freight EBITDA increased 13% 2020 846 to DKK 741m driven by North Sea and Mediterranean; Channel lower 2019
Slide 12: Revenue lifted by acquisitions, passenger recovery, BAF & logistics
Revenue lifted by acquisitions, passenger recovery, BAF & logistics • Passenger up DKK 845m driven DKK m Change in revenue, Q3 2022 vs Q3 2021 by Passenger and Channel 7,250 32 6,750 977 • Freight ferry increase mainly due to pass-through of bunker costs 6,250 325 5,750 • Logistics growth reflects p
Slide 13: Q3 2022 income statement – margins improved
Q3 2022 income statement – margins improved • EBITDA up 88% primarily driven by passenger DFDS Group P/L DKK m Q3 21 Q3 22 Δ Δ recovery, improved logistics results, and addition Revenue 4,406 7,205 2,799 64% of HSF Logistics Group EBITDA* 848 1,591 742 88% Margin 19.3% 22.1% 2.8% • Depreciation up D
Slide 14: Financial leverage reduced to 2.9x - back in target range
Financial leverage reduced to 2.9x - back in target range • Operating cash flow up 16% to DKK 1.3bn DKK m Q3 21 Q3 22 Δ Δ despite seasonal negative cash impact Cash flow from working capital Operating cash flow 1,147 1,335 188 16% Investments, total -1,106 -987 119 -11% Operating -190 -436 -246 129%
Slide 15: Debt refinancing ongoing
Debt refinancing ongoing Interest-bearing debt, excl. lease liabilities, Q3 2022 • Interest-bearing debt of DKK 11.6bn, excluding IFRS 16 lease liabilities • Debt with fixed interest around 40% of total 36% 42% • Bond financing expired in Q3 2022, replaced with bridge until end 2023 4% 2% • Investme
Slide 16: All Ferry business units increased EBITDA
All Ferry business units increased EBITDA • North Sea up 45% driven by DKK m EBITDA* per business unit higher revenue from rates and 450 standage fees in port terminals 413 and lower operating costs 350 362 250 284 276 • Mediterranean up 31% driven by 7% volume growth that was 150 207 165 lowered by
Slide 17: Channel freight volumes – growth trending down in 2022
Channel* freight volumes – growth trending down in 2022 • Channel volumes recovered Channel - freight volume and growth through 2021 post 20% 1,200,000 Covid-19 and Brexit 15% 1,000,000 Stockbuilding 10% ahead of Brexit • Declining trend in 2022 5% 800,000 continued in Q3 with a 6% 0% decrease vs Q3
Slide 18: Channel – in Q3 DFDS provided around 50% of ferry sailings
Channel – in Q3 DFDS provided around 50% of ferry sailings Channel - ferry sailings • DFDS sailings ended Q3 at 50% of all sailings – space charter agreement 80% has enabled a reduction of sailings 70% from October 2022 60% • P&O Ferries’ capacity in Q3 continued 50% below historic level 40% 30% • I
Slide 19: Channel freight market share – re-entry of P&O from suspension
Channel freight market share – re-entry of P&O from suspension • DFDS and Eurotunnel Channel - freight market share market shares reduced by 50% re-entry of P&O Ferries 45% 40% • Irish Ferries’ market share 35% continued at 13% in Q3 30% 25% • Eurotunnel currently 20% benefits from lower energy 15%
Slide 20: Channel passenger car market share – Eurotunnel still above ferries
Channel passenger car market share – Eurotunnel still above ferries Channel - car market shares • Eurotunnel’s market share in Q3 remained above historical 80% match with total ferry market 70% share in mid high season 60% • DFDS maintained 50% of total 50% ferry market as recovery of 40% P&O Ferrie
Slide 21: Channel passenger market share – DFDS has maintained share
Channel passenger market share – DFDS has maintained share • Ferry market development: Channe l, Dove r Strait - passe nge r mark e t share s • PO Ferries down from 31% S hare S hare I nd ex vs S hare S hare share in 2019 to 18% in 2022 Mill. Q3 2019 ferry t o t al Q3 2022 2019 ferry t o t al • DFDS
Slide 22: All Ferry business units increased EBITDA
All Ferry business units increased EBITDA • Baltic Sea up 22% as lower DKK m EBITDA* per business unit operating costs and higher 450 passenger earnings offset 413 lower freight volumes 350 362 284 • Passenger up DKK 250m 250 276 following the recovery in 150 207 165 passenger volumes and 118 144 in
Slide 23: Logistics EBITDA up 91% to DKK 297m
Logistics EBITDA up 91% to DKK 297m EBITDA* per business unit DKK m • Dry Goods up 55% as margin 175 150 improvement of previous quarters was 125 144 153 sustained in Q3 100 93 • Most Nordic and Continent activities 75 50 63 improved earnings 25 • UK & Ireland on level with 2021 0 Dry Goods Cold Cha
Slide 24: Key ESG actions
Key ESG actions • Ferry CO2 emissions reduced 4% in Q3 across the ferry network • Sailing schedules adapted to allow for further slow steaming • First batch of biofuel (B100) being tested on Vlaardingen-Immingham • 2 eTrucks running in Ghent and Got. 20 additional eTrucks in Dec/Jan • 1m kWh of clea
Slide 25: Outlook
Current situation 2022 OUTLOOK Click icon to add picture
Slide 26: Outlook 2022 – EBITDA and revenue growth raised, again
Outlook 2022 – EBITDA and revenue growth raised, again • Revenue growth raised to around DKK m Outlook 2022 Previous 2021 45% (previously around 40%) Revenue growth Around 45% Around 40% 17,869 EBITDA before special items 4,800-5,000 4,400-4,800 3,411 • Increase mainly due to higher Per division: re
Slide 27: Key current priorities
Key current priorities • Continuous adaptation of capacity to demand changes – DFDS strategy as always • Organic growth • Inorganic growth through M&A and other initiatives • Automotive • Easy access for • Mediterranean • Develop on • Climate Action Plan customers business plan board customer • Deve
Slide 28: Capex & capital distribution
Current situation CAPEX & CAPITAL DISTRIBUTION Click icon to add picture
Slide 29: Capital distribution resumed in 2022 after Covid-19
Capital distribution resumed in 2022 after Covid-19 • Dividend on hold 2020-21 as Covid- Distribution to shareholders, DKK m 2017 2018 2019 2020 2021 2022 19 raised NIBD/EBITDA above 4x Dividend paid per share, DKK 10.00 4.00 4.00 0 0 8.00 Total dividend paid ex. treasury shares 555 219 229 0 0 458
Slide 30: CAPEX set to decline following completion of newbuilding program
CAPEX set to decline following completion of newbuilding program • 6 freight ferry newbuildings delivered Capex 2019-2021 DKK bn 5.0 • 2 combined freight & passenger ferries 4.0 delivered 2021-2022 3.0 • CAPEX set to decline next couple of 2.0 years following completion of current newbuilding progra
Slide 31: Q&A
Q&A
Slide 32: Ferry ESG
Ferry ESG • More shore power • First biofuel Q4 • Green ferry 2025 • Green barge 2023 32
Slide 33: Logistics ESG
Logistics ESG • 50% reduction by 2030 of road & warehousing emissions • Trial of 200 hydrogen trucks in 2024/25 • 12 warehouses with solar panel systems planned • First E-trucks in Gothenburg Q4 • E-trailers in Denmark plus UK 'sunswap' trailers 33
Slide 34: High-level intro: key freight and passenger offerings
o—* Freight route Freight and passenger route &--© Rail connections Our key freight and passenger offerings Freight Passenger Ferry transport of freight units, accompanied and unaccompanied Port terminal services Rail Solutions Special Cargo Short sea ferry Overnight ferry Mini cruise Packaged break
Slide 35: Our key logistics offerings
Our key logistics offerings Dry Goods Cold Chain Door-door forwarding, Door-door forwarding, full & part loads full & part loads Wee bo Warehousing and i ae cross-docking Storage and cross-docking vee tee a. rss) Distribution Distribution centres tanner a x Lo Just-in-sequence SO ae Rental and clean
Slide 36: Ferry types
Ferry types The route network deploys 65 ferries Day ferry (ro-pax), Channel Freight ferry (ro-ro) Combined freight and passenger ferry (ro-pax) Cruise ferry
Slide 37: Freight ferry
Freight ferry • Our largest freight ferries carry 450 trailers equal to 6.5 km of deck length • Turnaround time in port of 7 to 9 hours • Crew of around 15 • Newbuildings lower bunker consumption by 30% when fully utilised
Slide 38: Roll on, roll off – freight ferry business model
Roll on, roll off – freight ferry business model • Ro-ro/ro-pax shipping: roll on, roll off of freight units and passenger cars • Routes carry both unaccompanied and accompanied trailers • Our largest freight ferries can carry 450 trailers equal to 6.5 km of deck length
Slide 39: Logistics – dry and cold chain solutions
Logistics – dry and cold chain solutions
Slide 40: Executive Management Team (EMT)
Executive Management Team (EMT) Torben Carlsen Karina Deacon Mathieu Girardin Executive Board: • Torben Carlsen, CEO • Karina Deacon, CFO Extended management team: Anne-Christine Niklas Andersson Rune Keldsen Ahrenkiel • Mathieu Girardin, Head of Ferry Division* • Niklas Andersson, Head of Logistics