Dfds A/s · OMXCOP:DFDS
Dfds A/s — FY2005 Earnings Presentation
46 slides from Dfds A/s's earnings presentation, Mar 17, 2006
Slide 1: Annual Report 2005 Analyst Presentation
DFDS A/S Annual Report 2005 Analyst Presentation 17 March 2006
Slide 2: Contents
DFDS A/S Contents • The year in brief • Strategy: the last five years, and the next five years • Peer Group • DFDS Seaways • DFDS Tor Line • Accounts 2005 & profit forecast 2006
Slide 3: 2005 in brief
DFDS A/S 2005 in brief • Pre-tax profits, DKK 238 million • Revenue increase, 10% • ROIC, 6.0% • Continued growth within the freight sector • Market position improved via company acquisitions • Difficult passenger market – with bright spots • Position in passenger market consolidated
Slide 4: Group strategy
DFDS A/S Group strategy Follow up 2001-2005 The next five years
Slide 5: 01-05: Follow up – Revenue
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Revenue 01-05: Follow up 7 6 5 DKK billion • Market position 4 strengthened via organic 3 growth and company 2 acquisitions 1 0 2001 2002 2003 2004 2005 • Adaptation of passenger DFDS Seaways DFDS Tor Line activities to market conditions • S
Slide 6: 01-05: Following up – ROIC
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Kommer i en bedre kvalitet 01-05: Following up DFDS Koncernen Blot for at give9et overblik 8 7 • ROIC has improved year by 6 year on a comparable basis 5 % 4 3 • Gap of 0.4% points to 2 1 calculated weighted 0 average cost of capital 2001 20
Slide 7: 01-05: Follow up – Development in strategic fleet goals
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› 01-05: Follow up Development in strategic fleet goals 2001 2002 2003 2004 2005 Goals Freight fleet: • Freight fleet in line with Average age, years 13,9 12,5 10,6 9,1 9,5 10 Ownership share, % 87 62 51 43 45 45-50 goals Passenger fleet: • Pa
Slide 8: 01-05: Follow up – DFDS Group
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› 01-05: Follow up DFDS Group 9 8 7 • ROIC has improved year by 6 year on a comparable basis 5 % 4 3 • Gap of 0.4% points to 2 weighted average cost of 1 capital (WACC) 0 2001 2002 2003 2004 2005 • Phase 1 goal: ROIC on a DFDS ROIC DFDS cost o
Slide 9: Solid foundation created for DFDS's further development
DFDS A/S 2001-2005 Solid foundation created for DFDS's further development
Slide 10: Three main strategies for the next five years
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Three main strategies for the next five years GROWTH Consolidation Risk diversification DIRECTION PERFORMANCE Freight & passengers Yearly improvement Concept development Solid capital structure
Slide 11: Direction – freight and passenger transport, with the accent on freight
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Direction – freight and passenger transport, with the accent on freight • Freight and passengers belong together in most markets – DFDS has strong competencies in both areas • Steady growth in the freight market expected to continue • Modera
Slide 12: Performance
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Performance • Further improvements required in earnings • Minimum goal: ROIC higher than capital costs • Annual improvements to be achieved via: – Greater capacity utilisation – Competitive customer concepts – Increased operational efficienc
Slide 13: Growth
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Growth • Consolidation will continue to be driven by consolidation in land transport and a high level of competition • DFDS is well positioned, both geographically and in terms of activities • Broader/deeper income base will facilitate econo
Slide 14: Peer Group companies
Peer Group companies DFDS A/S
Slide 15: Peer Group
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Peer Group Revenue: Ten largest ro-ro based, North European freight and passenger shipping companies 1.600 1.400 1.200 1.000 EUR mill. 800 600 400 200 0 ) e ne ne ne S ne es s s /ro lin e e FD Li lin Li lin Li Li rri (ro lk D Fe d or nn fo l
Slide 16: DFDS Seaways 2005 and beyond
DFDS A/S DFDS Seaways 2005 and beyond
Slide 17: Important events
DFDS A/S Important events • Difficult passenger market – with bright spots • Three passenger vessels upgraded • New tonnage bought for Amsterdam route • Chartering-out of excess tonnage • Cuxhaven route closed in November • German sales organisation restructured • New marketing platform introduced •
Slide 18: Financial performance
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› DFDS Seaways - operating profit (EBITA) Financial performance 200 150 100 DKK mill. 50 • EBITA for 2005 on a par 0 with 2004 -50 -100 • Increased cost of bunkers -150 Q1 Q2 Q3 Q4 2004 2005 • Q3 negatively influenced by high level of competit
Slide 19: Amsterdam - Newcastle – new tonnage
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Amsterdam - Newcastle – new tonnage • KING OF SCANDINAVIA placed in service 11 March 2006 • Rebuilding and introduction went as planned • Route capacity improved by 33% for both passengers and freight • In 2006, the goal is to increase volum
Slide 20: Market trends in 2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Market trends in 2006 • Experiences and special activities are in demand, as well as culture and nature • Less loyalty shown than before • The Internet is the most important planning tool and sales channel • "Book in good time at lower price
Slide 21: DFDS Seaways - strategy
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› DFDS Seaways - strategy • Future-oriented platform in place • From volume-game to value-game • New price and distribution strategy • More online sales • On-board concepts and level of service are decisive to the success of the cruise ferry e
Slide 22: DFDS Tor Line 2005 and beyond
DFDS A/S DFDS Tor Line 2005 and beyond
Slide 23: Important events
DFDS A/S Important events • Market growth in most areas • North Sea route acquired from Cobelfret • Purchase of 66% of Halléns, Belgian trailer operators • Remaining 34% of shares in Lys-Line bought • AngloBridge South switched to Tilbury • New port of call in Baltijsk, Kaliningrad • Partnership ini
Slide 24: Financial performance
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› DFDS Tor Line - operating profit (EBITA) Financial performance 140 120 100 DKK mill. 80 • EBITA rose by 18% to DKK 60 359 million 40 20 0 • Good progress on North Q1 Q2 Q3 Q4 Sea routes due to higher 2004 2005 volumes DFDS Tor Line - Investe
Slide 25: DFDS Suardiaz Line
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Greenock Dublin Avonmouth DFDS Suardiaz Line Weekly Sailing schedule: Bilbao Friday Avonmouth Sunday Dublin Monday Bilbao Greenock Tuesday
Slide 26: Future SUARDIAZ & DFDS LoLo – RoRo Network
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Future SUARDIAZ & DFDS LoLo – RoRo Network
Slide 27: Market trends in 2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Market trends in 2006 • Continued high rate of growth expected in Russia and the Baltic countries • Strong economy in Northern Europe • Favourable conditions for continued growth in short-sea shipping: driving and rest time regulations, road
Slide 28: DFDS Tor Line - strategy
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› DFDS Tor Line - strategy • Competitive liner services: frequency, capacity and reliability • Integrated network of ro-ro, ro-pax and lo-lo services to meet market demands • Trailer operators remain the most important customer group • Shippin
Slide 29: Ramp, Immingham
DFDS A/S Ramp, Immingham
Slide 30: Ramp, Immingham
Ramp, Immingham DFDS A/S
Slide 31: Ramp, Immingham
DFDS A/S Ramp, Immingham
Slide 32: SpeedCargo
SpeedCargo SQorreve, ay OSpasc€agce LT iL
Slide 33: TOR FICARIA
DFDS A/S TOR FICARIA
Slide 34: DFDS Group Annual accounts 2005
DFDS A/S DFDS Group Annual accounts 2005
Slide 35: DFDS Group - Profit and loss account
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› DFDS Group - Profit and loss account DKK mill. 2004 2005 Change, % In % of revenue Revenue 5.723 6.278 9,7 n.a. n.a. Ship operating costs 2.765 3.154 14,1 48,3 50,2 Charter costs 503 525 4,6 8,8 8,4 Staff costs 1.180 1.292 9,4 20,6 20,6 Othe
Slide 36: Oil price trends 2004-2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Oil price trends 2004-2006 350 300 250 USD per tons 200 150 100 50 3.5% bunkers 0 maj-04 maj-05 jul-04 jul-05 mar-04 mar-05 mar-06 jan-04 jan-05 jan-06 sep-04 nov-04 sep-05 nov-05
Slide 37: Indexed oil price trends, 2005-2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Indexed oil price trends, 2005-2006 250 230 210 190 170 Oil price, DKK Index 150 Oil price, USD 130 110 90 3.5% bunkers 70 50 maj-05 jul-05 mar-05 jan-05 jun-05 okt-05 jan-06 aug-05 apr-05 dec-04 sep-05 nov-05 dec-05 feb-05 feb-06
Slide 38: DFDS Group - Balance sheet
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› DFDS Group - Balance sheet DKK mill. 2004 2005 Change, % In % of revenue Intangible assets 100 292 192,8 1,2 3,4 Tangible assets 6.595 6.735 2,1 82,6 79,6 Other non-current assets 152 148 -2,3 1,9 1,8 Current assets 1.140 1.282 12,5 14,3 15,
Slide 39: Cash flow & investments
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Cash flow 1.000 Free cash flow from operations & investments 500 DKK mill. 0 -500 • Cash flow from operations -1.000 negatively influenced by -1.500 2004 2005 rise in working capital Cash flow from operations Net investments Free cash flow •
Slide 40: Rate of turnover, invested capital
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Rate of turnover, invested capital 8.000 1,0 0,9 7.000 0,8 6.000 0,7 5.000 0,6 DKK mill. Times 4.000 0,5 0,4 3.000 0,3 2.000 0,2 1.000 0,1 0 0,0 2001 2002 2003 2004 2005 Revenue Average invested capital Turnover rate, invested capital
Slide 41: ROIC by division
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› ROIC by division 8 7 6 5 4 % 3 2 1 0 -1 DFDS Seaw ays DFDS Tor Line Non-allocated items DFDS Group 2003 2004 2005
Slide 42: Dividend
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Dividend 8 35 7 30 6 25 5 20 DKK % 4 15 3 10 2 1 5 0 0 2003 2004 2005 Dividend per share Dividend payout ratio
Slide 43: Profit forecast 2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Profit forecast 2006 • Revenue increase of around 8 -10%: – Full-year effect of purchases of trailer operators – Volume increase in the freight sector – Capacity enhancement and more departures in passenger traffic • Investments totalling ap
Slide 44: Profit forecast 2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Profit forecast 2006 • Bunkers hedging: – Most of the bunker consumption for Q1 hedged by financial instruments and price adjustment agreements – Consumption for the remainder of the year primarily hedged by price-adjustment agreements – Pri
Slide 45: Profit forecast 2006
DFDS Annual Report 2005 - Analyst Presentation Slide ‹nr.› Profit forecast 2006 • DFDS Tor Line's operating profit (EBITA) is expected to rise by around 10%, including a profit of DKK 16 million from the sale of a ship in January 2006 • DFDS Seaways’ operating profit (EBITA) is expected to rise by 5
Slide 46: Thank you for your attention!
DFDS A/S Thank you for your attention!