Slide 1: Q2 better than expected
Q2 better than expected Q2 2023 investor call 15 August 2023
Slide 2: Content
Content • Q2 2023 overview • Results Agenda • ESG update • 2023 outlook 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: Q2 better than expected as we navigate(d) challenging markets
Q2 better than expected as we navigate(d) challenging markets Continued Despite headwind Recent acquisitions Cash flow focus performance above in some areas doing well expectations Operational Channel overcapacity McBurney and Lucey Finance cost doubled by performance… performing as expected higher
Slide 4: Q2 vs LY: higher passenger & logistics results offset by freight ferry
Q2 vs LY: higher passenger & logistics results offset by freight ferry Q2 EBITDA before special items DKK m • DFDS Group EBITDA down 5% to DKK 1.4bn 2023 1,404 2022 1,474 • Q2 2022 comparison impacted by elevated Channel earnings from P&O suspension 2021 897 2020 507 • Ferry freight EBITDA down 20%
Slide 5: Revenue reduced by surcharges and lower freight volumes
Revenue reduced by surcharges and lower freight volumes • Revenue reported down 3.2% but up Change in revenue, Q2 2023 vs Q2 2022 2.5% adjusted for bunker surcharges DKK m • Freight ferry decrease mainly due to lower bunker surcharges 7,150 • Passenger up DKK 114m driven by 24% higher volumes 6,900
Slide 6: Q2 2023 income statement
Q2 2023 income statement • EBITDA down 5% driven by freight ferry DFDS Group P/L DKK m Q2 22 Q2 23 Δ Δ Revenue 7,170 6,942 -228 -3% • Depreciation up 6% or DKK 35m due to EBITDA 1,474 1,404 -69 -5% Logistics acquisitions Margin 20.6% 20.2% -0.3% • EBITA down 13% to DKK 765m, margin Other income/cost
Slide 7: Leverage unchanged due to higher cash flow generation
Leverage unchanged due to higher cash flow generation • ROIC before acquisition intangibles increased DKK bn Q2 2022 Q2 2023 Δ Δ to 11.4% (8.5%) and ROIC to 8.4% (6.3%) Returns Invested capital, end 26.1 28.9 2.7 10% ROIC before acquisition intangibles 8.5% 11.4% 2.9% n.a. • Operating cash flow of D
Slide 8: Ferry Division – good passenger result offset by lower freight volumes
Ferry Division – good passenger result offset by lower freight volumes DKK m Q2 22 Q2 23 Δ Δ • Freight revenue down 2% adjusted for Revenue 4,544 4,176 -368 -8% Freight ferry 3,752 3,270 -482 -13% bunker surcharges as higher unit revenue Passenger 793 907 114 14% partly offset 15% lower volumes EBIT
Slide 9: Logistics Division – lower volumes, organic earnings protected
Logistics Division – lower volumes, organic earnings protected • Dry Goods revenue down 2% and 7% DKK m Q2 22 Q2 23 Δ Δ Revenue 2,979 3,088 109 4% adjusted for acquisitions as volumes and Dry Goods 1,618 1,586 -32 -2% surcharges decreased Cold Chain 1,349 1,487 138 10% Gross profit 894 1,172 278 31%
Slide 10: Key Q2 ESG actions
Key Q2 ESG actions • Ferry CO2 emission intensity reduced 8% across route network • E-trucks: 45 of 125 ordered trucks deployed end Q2 • DFDS Decarbonisation Solution platform launched for customers to purchase CO2 reduction certificates linked to use of biofuel/electricity in ferry/land transport •
Slide 11: 2023 Outlook
Current situation 2023 OUTLOOK Click icon to add picture
Slide 12: Outlook for 2023 raised
Outlook for 2023 raised New Previous • EBITDA outlook raised by H1 financial DKK m outlook 2023 outlook 2023 2022 performance above expectations Revenue growth On level On level 26,873 • Commercial and operational initiatives EBITDA 4,800-5,200 4,500-5,000 4,955 expected to support H2 performance Pe
Slide 13: Key current priorities for 2023
Key current priorities for 2023 • Capacity management - continuous focus vs demand development • Ongoing execution of cost adaptation initiatives • Attract volumes to network through customer focus • Growth through M&A and other initiatives to continously strengthen the network • Move green transfor
Slide 14: Q&A
Q&A