Dfds A/s · OMXCOP:DFDS
Dfds A/s — SEB Nordic Seminar, Copenhagen 2019
31 slides from Dfds A/s's conference presentation, January 2019
Slide 1: Ferry Routes & Logistics: DFDS Group Update January 2019
FERRY ROUTES & LOGISTICS DFDS Group Update January 2019
Slide 2: What we do
WHAT WE DO . 2 2
Slide 3: We move freight and passengers on 24 ferry routes
We move freight and passengers on 24 ferry routes in Europe and Turkey 3 3
Slide 4: It's all about the routes – and their location
It’s all about the routes – and their location Serving industrial clusters Combined trade and travel 4 4
Slide 5: Our key freight customers are forwarders and hauliers
Our key freight customers are forwarders and hauliers Manufacturers of heavy goods are also important customers 5 5
Slide 6: Roll on, roll off
Roll on, roll off • Ro-ro/ro-pax shipping: roll on, roll off of freight units and passenger cars • Routes carry both unaccompanied and accompanied trailers • Other types of cargo, e.g. heavy industrial goods and containers, are placed on carrying equipment (mafis) and tugged on to the ship 6 6
Slide 7: On 9 routes we move freight and passengers together
On 9 routes we move freight and passengers together 7 7
Slide 8: Ferry types
FERRY TYPES Day ferry (ro-pax), Channel Freight ferry (ro-ro) Cruise ferry Combined freight and passenger ferry (ro-pax)
Slide 9: We also provide transport and logistics solutions
We also provide transport and logistics solutions to a wide range of businesses 9 9
Slide 10: Freight, logistics & pax – northern Europe & Mediterranean
Freight, logistics & pax – northern Europe & Mediterranean Freight ferry routes Logistics solutions Passenger routes ▪ Trailers, unaccompanied ▪ Door-door full & ▪ Overnight Key & accompanied part loads services ▪ Day ▪ Industry solutions ▪ Contract logistics ▪ Transport/holiday ▪ Port terminals ▪ C
Slide 11: Structure & Performance
STRUCTURE & PERFORMANCE . 11 11
Slide 12: DFDS structure, ownership and earnings split
DFDS structure, ownership and earnings split DFDS Group DKK bn Revenue 2017-18 Q3 LTM per division People & Ships Finance 18 16 14 Ferry Logistics 12 10.7 Ferry 10 8 Logistics • 23 ferry routes - freight • Door-door transport 6 Eliminations and other and passengers • Contract logistics 4 • 43 ferrie
Slide 13: DFDS key figures
DFDS key figures DKK bn Revenue DKK bn EBITDA & margin before special items Margin, % 16 3.0 20 14 18 2.5 12 16 2.0 10 14 8 1.5 12 6 1.0 10 4 0.5 8 2 0 0.0 6 2014 2015 2016 2017 2018 Q3 LTM 2014 2015 2016 2017 2018 Q3 LTM Ferry Logistics Invested capital & ROIC before special items ROIC, % NIBD/EBIT
Slide 14: Mediterranean
MEDITER RANEAN . 14 14
Slide 15: Expanded cooperation with Ekol boosts Mediterranean
Expanded cooperation with Ekol boosts Mediterranean • Cooperation with Ekol Logistics expanded on routes between Istanbul and Trieste • Ekol Logistics is a leading Turkish logistics company with around 7,000 employees • 30% volume increase expected for Istanbul-Trieste routes • Two ro-ro new buildin
Slide 16: New route Yalova-Trieste driven by Ekol volumes
New route Yalova-Trieste driven by Ekol volumes 16
Slide 17: New Yalova port improves port infrastructure in Istanbul
New Yalova port improves port infrastructure in Istanbul West East Istanbul Istanbul • Yalova’s location in south-east expands catchment area Ambarli Pendik Yalova • Region with high level of manufacturing, including auto plants • Prepayments will allow the terminal to invest in expansion and improv
Slide 18: Brexit
BREXIT . 18 18
Slide 19: DFDS' UK exposure
DFDS’ UK exposure • Ferry routes connecting UK to Continent and Ferry routes: UK-Continent/Scandinavia LTM Scandinavia (business units Channel and North Sea revenue: DKK 5.3bn plus Amsterdam-Newcastle) 29% • LTM revenue of around DKK 5.3bn with average operating leverage of 65% • Logistics: UK & Ire
Slide 20: DFDS is planning for two scenarios
DFDS is planning for two scenarios Hard Brexit Soft (transition) Brexit March 29, 2019 December 31, 2020 • UK departs the EU at 11pm UK time • Transition period to allow UK to get most in place and allow businesses • UK gives up full access to the single and others to prepare for the new market and
Slide 21: Preparations focused on: assets, processes and expertise
Preparations focused on: assets, processes and expertise Assets Processes Expertise New assets to enable New processes to grow Building expertise to new services and mitigate business and ensure address customs congestion and volume efficient operations challenges loss 21
Slide 22: Assets for new services, mitigate congestion/volume loss
Assets for new services, mitigate congestion/volume loss Objective Asset-related activity Activity description Enable new Additional facilities to hold additional stock pre and Warehousing facilities services and post clearance mitigate congestion Warehousing facilities to allow cargo to be held and
Slide 23: New processes to grow business and efficient operations
New processes to grow business and efficient operations Objective Process-related activity Activity description Customs clearance Offer customs documentation services to customers Grow business Duty free on PAX and RO-PAX routes to increase on- Duty free board sales Secure IT Test assumed IT process
Slide 24: Building expertise to address customs challenges
Building expertise to address customs challenges Objective Expertise-related Activity description activity Customs clearance teams being set up, trained and Customs team upsized across the divisions Build internal Dedicated groups of local BUs formed to solved customs Working groups common challenge
Slide 25: Contingency plan developed for hard Brexit
Contingency plan developed for hard Brexit Assets • Create short-term capacity in terminals to reduce traffic e.g. by renting extra space • Postpone docking of vessels from Q1 to Q2 to cater for pre-Brexit trade spike (already decided) Processes • Focus on sales by supporting customers in navigating
Slide 26: Sustainability
SUSTAIN ABILITY . 26 26
Slide 27: Our sustainability focus
Our sustainability focus Environmental footprint Caring employer • Support marine environment • Focus on wellbeing for all employees • Be a good and responsible neighbour • Support an inclusive worksplace • Improve air quality • Provide opportunities to do good in communities and society 27
Slide 28: Digital
DIGITAL . 28 28
Slide 29: Digital moving to centre of strategy
Digital moving to centre of strategy • Digital go-to-market • Web development • Marketing automation • Easier access for smaller freight customer • Digitising the core • Improve decision making through data • Optimise operations through automation • Prepare for autonomy through innovation and partne
Slide 30: Current priorities
Current priorities • Preparing for Brexit transition • Launch of new route from Yalova • Customer satisfaction – grow the topline • Continue push for efficiency improvements • Improve performance of Passenger business unit • Realise our next steps in digital strategy • Deployment of two freight new
Slide 31: Q&A
Q&A . 31