Slide 1: First Quarter On Track
FIRST QUARTER ON TRACK DFDS GROUP Q1 2019 9 May 2019
Slide 2: Contents
Contents • Overview • Market prospects • 5 performance drivers • Q1 numbers • Capital structure • Priorities and outlook 2019 The statements about the future in this announcement contain risks and uncertainties. This entails that actual developments may diverge significantly from statements about th
Slide 3: Growth driven by continued network expansion
Growth driven by continued network expansion DKK bn Revenue Q1 • Q1 revenue up 11% to DKK 3.9bn; 4.0 +11% EBITDA up 13% to DKK 677m 3.5 +8% 3.0 2.5 • North Sea achieved strong result 2.0 1.5 • Fast ramp-up in Mediterranean 1.0 0.5 delivers growth but at reduced 0.0 margins 2017 Ferry 2018 Logistics
Slide 4: Market growth prospects 2019
Market growth prospects 2019 Euro Zone 2.0% 1.5% 1.5% 1.4% 1.2% 1.0% • Visibility on Europe’s growth still 0.5% dampened by Brexit 0.0% 2019 2020 2021 • Brexit postponed until end United Kingdom October 2.0% 1.6% 1.5% 1.4% 1.2% 1.0% • Continued positive low growth 0.5% outlook for Europe even though
Slide 5: 5 key DFDS performance drivers 2019 on track
5 key DFDS performance drivers 2019 on track New route: Gothenburg-Zeebrugge 1. Growth from Mediterranean expansion: Full-year UNRR Ekol agreement signed. Turkish integration impact and expanded recession & political unrest putting pressure on forecast cooperation with Ekol Logistics 2. Well prepare
Slide 6: Network expansion increases EBITDA and capital costs
Network expansion increases EBITDA and capital costs • Revenue growth of 11% driven by Change Change DKK m Q1 19 Q1 18 vs LY % Mediterranean. REVENUE 3,870 3,485 385 11% EBITDA BEFORE SI 677 597 80 13% • Cost increase from Mediterranean margin, % 17.5 17.1 0.4 n.a. ramp-up, additional dockings and P
Slide 7: Ferry Division – EBIT up 8% to DKK 223m
Ferry Division – EBIT up 8% to DKK 223m • North Sea +29m: UK route capacity Q1 2019 EBIT change vs LY increased to accomodate stockpiling. DKK m Lower volumes Sweden-Belgium 250 • Baltic Sea -31m: One-off tonnage 240 -30 /bunker costs to maintain capacity 230 43 during dockings and deferred maintena
Slide 8: Logistics Division – EBIT down 8% to DKK 45m
Logistics Division – EBIT down 8% to DKK 45m • Nordic -11m: Lower activity due Q1 2019: EBIT change vs LY to peak volumes for large DKK m 55 logistics contract in Q1 2018. Some start-up costs for new 50 sideport contract 45 • Continent -4m: Also lower -11 activity due to jointly operated 40 11 contr
Slide 9: North Sea benefited from UK stockpiling
North Sea benefited from UK stockpiling • North Sea Q1 volumes EU-UK trade of goods - volume development up 1.4%... 12% 10% • …and 6.2% adjusted for Gothenburg-Ghent 8% where large contract peaked volumes in Q1 6% 2018 4% • DfT contract began 29 2% March. Termination on 0% 1 May by DfT -2% -4% Q1 Q2
Slide 10: Stora Enso agreement & new route Sweden-Belgium
Stora Enso agreement & new route Sweden-Belgium • 5-year agreement to carry 700,000 tons of paper and board products between Gothenburg and Zeebrugge • DFDS opens new route • Three freight ferries to be deployed on route • Purchase of two ferries from 3rd party owner for DKK 270m • One ferry to tran
Slide 11: TRY recently weakened – receivable risk resolved
TRY recently weakened – receivable risk resolved • New invoicing model TRY/DKK introduced per 1.70 beginning 2019 1.60 -10% since • Incentives offered for 1.50 beg. 2019 payment in euros, cash 1.40 or early payment 1.30 • More than 90% of 1.20 customers now paying in euros or cash 1.10 1.00 0.90 11
Slide 12: Mediterranean volumes boosted by Ekol agreement
Mediterranean volumes boosted by Ekol agreement • Q1* volumes up 14.2% LM '000 Mediterranean volumes 400 • Istanbul-Trieste volume growth of 30% in Q1. 380 Ekol added and recurring 360 volumes stable 340 320 • Greater impact on Istanbul-Toulon and 300 Mersin-Trieste by 280 downturn 260 • Drewry volu
Slide 13: Capital structure
Capital structure • Dividend of DKK 4.00 per NIBD/EBITDA (restated to IFRS 16) share paid in March 3.5 3.0 3.2 3.3 • NIBD/EBITDA-multiple was 3.0 3.1 3.3x end of Q1 2019 2.5 2.0 Times • Leverage expected to 1.5 1.6 decrease to around 2.8x end 1.0 2019, including investment 0.5 in two freight ferries
Slide 14: Priorities going into 2019 – unchanged earnings outlook
Priorities going into 2019 – unchanged earnings outlook • Adapting to market changes: OUTLOOK 2019 • Continue Brexit preparation • Optimise capacity • Revenue growth of 10-12% utilization in Mediterranean • EBITDA range of DKK 3,800-4,000m (2018: restated DKK 3,589m) • Opening of new route, • Ferry
Slide 15: Q&A
Q&A . 15