Slide 1: Solid Q4 and Strong 2016
SOLID Q4 AND STRONG 2016 DFDS GROUP Q4 2016 7 February 2017
Slide 2: Contents
Contents • Overview • Q4 and FY numbers • Capital distribution • Outlook 2017 • Strategic priorities 2017 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 2
Slide 3: Pursuit of improvement continues on back of higher earnings
Pursuit of improvement continues on back of higher earnings • Earnings level raised considerably in 2016 – EBITDA DFDS Group EBITDA up by 27% to DKK 2.6bn DKK m before special items • ‘Normalisation’ of Channel and full-year impact of 2016 2,588 more efficient Baltic route network were key drivers o
Slide 4: Solid Q4
Solid Q4 EBITDA BEFORE SPECIAL ITEMS, Q4 DKK m • EBITDA increased by 23% to DKK 600 513m in Q4 500 400 • Some slowdown of activity going into 300 495 Q4, strong pick-up in last half of Q4 385 that has continued into 2017 200 100 65 70 • UK economy impacted by lower GBP 0 -31 -52 in usual ways – no B
Slide 5: Main EBIT drivers in Q4
Main EBIT drivers in Q4 • Passenger +19m: positive impact from lower Q4 2016: DFDS Group EBIT development vs LY bunker costs and other cost savings DKK m 300 • North Sea +9m: increase mainly driven by volume 5 growth of 7% -5 3 14 -22 280 • Baltic Sea +20m: result lifted by volume growth 1 of 12% su
Slide 6: Q4 2016 in numbers
Q4 2016 in numbers • 6% revenue growth excluding revenue from Change Change bunker surcharges and adjusted for currency DKK m Q4 16 Q4 15 % changes. Reported revenue up by 1% REVENUE 3,351 3,324 27 1% EBITDA BEFORE SI 513 418 94 23% • EBITDA-margin increased in both divisions. Group margin, % 15.3 1
Slide 7: Full-year 2016 in numbers
Full-year 2016 in numbers • Revenue growth of 8% excluding revenue from Change Change DKKm 2016 2015 bunker surcharges and adjusted for currency % changes. Reported revenue up by 2% REVENUE 13,790 13,474 317 2% EBITDA BEFORE SI 2,588 2,041 547 27% • EBITDA includes a negative impact of DKK 65m from
Slide 8: Increased distribution of capital
Increased distribution of capital • Total of DKK 1.26bn distributed in Capital distribution overview 2016 to shareholders DKK m 2015 2016 2017 Actual Actual Current plan • Dividend per share proposed to be paid in 2017 increased by 33% to DKK 8.00 Dividend per share, DKK 5.40 6.00 8.00 per share Div
Slide 9: 2017: major performance drivers for DFDS
2017: major performance drivers for DFDS Certain/Likely Expected Uncertain Macro drivers • Capacity expansion • Some freight shipping • Passenger volume • Impact of Brexit on selected routes volume growth growth process on UK economy and trading • Deployment of two • Some growth in prices • Changes
Slide 10: EBITDA outlook for 2017 is DKK 2.6-2.8bn
EBITDA outlook for 2017 is DKK 2.6-2.8bn • Moderate growth in Europe expected to continue in 2017 OUTLOOK 2017 • Adjusted revenue growth of 4% • Revenue growth of around 4%, excluding revenue from bunker includes growth driven by full-year surcharges impact of new activities of around 1.5% • EBITDA
Slide 11: Total ferry sailings on Channel up 11% in Q4 vs LY
Total ferry sailings on Channel up 11% in Q4 vs LY Channel sailings 2015-2016 • In Q4 2016, the total number 1,800 3,300 of sailings was 11% above 2015 1,600 3,100 • DFDS has increased sailings 1,400 2,900 by 26% while P&O has decreased sailings by 1%, 1,200 2,700 together substituting MFL’s sailing
Slide 12: Continued freight growth, improved trend in car market
Continued freight growth, improved trend in car market Channel freight volume growth YOY, 2015-2016 • Freight market volumes were up by 15% 5.2% in Q4 2016 10% • The YOY growth per rolling full-year 5% was in Dec at 5.2% 0% -5% • Car market volumes were down by 0.8% in Q4 2016 -10% Jan Feb Mar Apr M
Slide 13: Channel market share development
Channel market share development Channel freight market shares, 2015-2016 • DFDS’ freight market share in Q4 45% 2016 increased vs Q4 15 driven by 40% increased capacity from February/March 2016 35% 30% 25% 20% 15% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep O
Slide 14: Continuous improvement projects
Continuous improvement projects • Toplight – simplified rate structure and preparing for digital customer solutions and efficiency gains in freight shipping • Carpe Momentum – improve on board sales and spend per passenger on Channel routes • Haulage Drive – improve efficiency of subcontracted haula
Slide 15: Increased operational agility
Increased operational agility • Faster adaptation of capacity to changes in volumes • Capacity increased on routes in Baltic Sea, North Sea South and Channel to accomodate higher volumes • Capacity decreased between UK and Sweden • Adjustment options for freight routes to reduce fixed costs: • Chang
Slide 16: Strategic priorities 2017
Strategic priorities 2017 • Customer focus – growing the topline • Continuous improvement: achieve benefits from programmes • Fleet renewal: deployment of two freight ship (ro-ro) new buildings and further decisions on fleet strategy • Digital: significant spending boost in digital and IT capabiliti
Slide 17: Q&A
Q&A . 17