Slide 1: Outlook firmed up by solid Q3
Outlook firmed up by solid Q3 Q3 2023 investor call 15 November 2023
Slide 2: Content
Content • Q3 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: Resilient ferry and logistics network delivers solid Q3
Resilient ferry and logistics network delivers solid Q3 Continued performance Freight headwinds Network expansion Cash flow focus above expectation Channel and Karlshamn- McBurney, Lucey, and Free cash flow level Good high-season Klaipeda overcapacity McLeod on track further increased… passenger act
Slide 4: Higher passenger result and acquisitions underpin EBITDA level
Higher passenger result and acquisitions underpin EBITDA level Q3 EBITDA DKK m • DFDS Group revenue down 2%; up 7% 2023 1,592 adjusted for bunker surcharges 2022 1,591 2021 848 • EBITDA at DKK 1.6bn on level with Q3 2022 2020 846 2019 1,195 • Ferry freight EBITDA down DKK 0.2bn 0 200 400 600 800 1,0
Slide 5: Revenue impacted by lower freight volumes and surcharges
Revenue impacted by lower freight volumes and surcharges Change in Q3 revenue • Revenue reported down 2% but up 7% adjusted for bunker surcharges (BAF) DKK m 7,400 • Freight ferry up 6% ex. BAF as higher Mediterranean revenue offset lower Channel and Baltic revenue 7,150 74 -451 • Passenger up 16% d
Slide 6: Q3 2023 results – stable EBITDA offset by higher finance cost
Q3 2023 results – stable EBITDA offset by higher finance cost DFDS Group P/L • EBITDA on level as Passenger and DKK m Q3 22 Q3 23 Δ Δ Logistics earnings offset lower Freight Revenue 7,324 7,190 -134 -2% Ferry earnings EBITDA 1,591 1,592 1 0% Margin 21.7% 22.1% 0.4% • Depreciation up 12% or DKK 68m d
Slide 7: Adjusted free cash flow up 85% to DKK 0.5bn
Adjusted free cash flow up 85% to DKK 0.5bn DKK bn Q3 2022 Q3 2023 Δ Δ • ROIC before acquisition intangibles at Returns 10.9% (11.4%) and ROIC at 8.0% (8.4%) Invested capital, end 27.1 29.2 2.1 8% ROIC BAI* 11.4% 10.9% -0.5% n.a. ROIC 8.4% 8.0% -0.4% n.a. • Operating cash flow of DKK 1.1bn reduced b
Slide 8: Ferry Division overview – overall robust result despite headwinds
Ferry Division overview – overall robust result despite headwinds • Revenue reported down 5% and up 10% DKK m Q3 22 Q3 23 Δ Δ Revenue 4,753 4,506 -247 -5% adjusted for BAF surcharges Freight ferry 3,503 3,052 -451 -13% Passenger 1,250 1,454 204 16% • Q3 EBITDA decreased 1% to DKK 1.3bn as EBITDA 1,3
Slide 9: Logistics Division – headwind from one-off costs and lower volumes
Logistics Division – headwind from one-off costs and lower volumes • Revenue reported up 1% and down 13% DKK m Q3 22 Q3 23 Δ Δ Revenue 2,947 2,985 39 1% adjusted for acquisitions Dry Goods 1,553 1,506 -47 -3% Cold Chain 1,388 1,484 96 7% • Q3 EBITDA up 8% to DKK 0.3bn and down DKK 61m (21%) adjusted
Slide 10: Key Q3 ESG actions – continued decrease of emission intensity
Key Q3 ESG actions – continued decrease of emission intensity • Ferry CO2 emission intensity reduced 4% across route network driven by schedule optimisation and vessel upgrades • E-trucks: 50 of 125 ordered trucks deployed end Q3 • Female representation improved 3 ppt to 19% for all managers. Acquis
Slide 11: 2023 Outlook
Current situation 2023 OUTLOOK Click icon to add picture
Slide 12: Outlook range for 2023 firmed up
Outlook range for 2023 firmed up New Previous 2022 DKK m outlook 2023 outlook 2023 • EBITDA outlook range narrowed to DKK 4.9-5.2bn from DKK 4.8-5.2bn Revenue growth On level On level 26,873 EBITDA 4,900-5,200 4,800-5,200 4,955 • Ferry Division outlook raised after good passenger high season. Q4 fre
Slide 13: Key current priorities for 2023
Key current priorities for 2023 • Capacity management - continuous focus on alignment to demand development • Ongoing execution of cost adaptation initiatives • Attract volumes to network • Move green transformation projects forward • Social – rollout of new Health & Safety system • Approval of FRS
Slide 14: Q&A
Q&A