Slide 1: Managing through Covid-19
MANAGING THROUGH COVID-19 DFDS GROUP 7 May 2020
Slide 2: Contents
Contents •Overview •Q1 numbers •Covid-19 update •Outlook 2020 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: Managing through the lower demand caused by Covid-19
Managing through the lower demand caused by Covid-19 • Continued delivery of reliable and efficient freight ferry and logistics services • Strong network and highly experienced people • Significant impact on passenger business from travel restrictions • Financial position remains strong 3 3
Slide 4: Q1 earnings reduced by lower volumes in March
Q1 earnings reduced by lower volumes in March • DFDS Group revenue down 1% and EBITDA down 10% vs 2019 Q1 EBITDA before special items DKK m • Lower passenger volumes since mid-March account for around half of EBITDA 2020 610 decrease 2019 677 • Freight ferry volumes reduced, including impact from lo
Slide 5: Q1 2020 result impacted by Covid-19
Q1 2020 result impacted by Covid-19 Change Change DKK m Q1 20 Q1 19 vs LY % • Revenue down 1% as negative impact REVENUE 3,813 3,870 -57 -1% from Covid-19 was offset by acquisitions EBITDA BEFORE SI 610 677 -67 -10% margin, % 16.0 17.5 -1.5 n.a. and new BAF model in Mediterranean P/L associates -2 2
Slide 6: Ferry BU overview – Baltic & Med up vs 2019
Ferry BU overview – Baltic & Med up vs 2019 • North Sea down DKK 42m. Volumes down 6% adjusted for Gothenburg-Zeebrugge. Negative DKK m Q1 2020 EBIT* development vs LY variance from earnings in Q1 2019 from UK 250 stockpiling and Covid-19 225 • Baltic Sea up DKK 17m mainly due to lower costs as Q1 2
Slide 7: Logistics BU overview – Continent reduced by Special Cargo
Logistics BU overview – Continent reduced by Special Cargo • Nordic’s EBIT down DKK 4m due to specialised Q1 2020 EBIT* development vs LY services that peaked in 2019. Lower trailer DKK m volumes in all key corridors. Good start for 50 Finnish acquisition (Freeco) 45 • Continent’s EBIT down DKK 18m
Slide 8: Covid-19 Update
COVID-19 UPDATE . 88
Slide 9: Extensive measures taken to keep employees & DFDS healthy
Extensive measures taken to keep employees & DFDS healthy • Employee health: Keeping operational sites and offices safe and reliable • Adaptation of capacity • Costs & CAPEX: Cost saving and postponement initiatives, including hiring freeze. CAPEX reduced 30% • Government compensation: Participation
Slide 10: Freight ferry – capacity adapted to lower demand
Freight ferry – capacity adapted to lower demand • All 20 ferry routes that mainly carry Jan-Feb Mar Q1 Lane metres, '000 2019 2020 ∆% 2019 2020 ∆% 2019 2020 ∆% freight are operating North Sea* 2,108 2,024 -4% 1,220 1,099 -10% 3,328 3,124 -6% Baltic Sea* 759 717 -6% 417 423 2% 1,175 1,140 -3% Channe
Slide 11: Passenger activities assumed to resume from August
Passenger activities assumed to resume from August Total DFDS passenger revenue 2019 - DKK 2.7bn • Suspension of two routes with overweight of 10% passengers from mid-March – Copenhagen- Oslo and Amsterdam-Newcastle • Passenger capacity still in place in Channel 55% 35% and Baltic Sea (ro-pax routes
Slide 12: Financial position remains strong
Financial position remains strong • Committed facilities expanded in DKK m DFDS - liquidity resources April and May 2020 2.500 • Covenants of U. N. Ro-Ro acquisition loan adapted to reflect 1.000 2.000 uncertainty caused by Covid-19 1.500 • No other loan agreements contain 2.680 relevant covenant ri
Slide 13: Outlook
OUTLOOK . 13 13
Slide 14: EBITDA 2020 likely to be reduced towards DKK 2bn
EBITDA 2020 likely to be reduced towards DKK 2bn • Outlook temporarily suspended since 18 March Q1 Apr 2020 FY 2020 • Updated outlook solely focused on consolidated Lane metres, '000 2019 2020 ∆% 2019 2020 ∆% ∆% EBITDA for the DFDS Group and investments North Sea* 3,328 3,124 -6% 970 692 -29% n.a. B
Slide 15: Well positioned to meet challenges and opportunities
Well positioned to meet challenges and opportunities • Fast adaptation to new situation • Organisation responding well to challenges • New opportunities can arise from structural market changes 15
Slide 16: Q&A
Q&A . 16