Slide 1: Pickup in demand faster than expected
Pickup in demand faster than expected Q2 2020 12 August 2020 Click icon to add picture
Slide 2: Content
Content • Overview • Q2 numbers Agenda • Major adaptations in Q2 • 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: Q2 ahead of forecast as freight picked up faster than expected
Q2 ahead of forecast as freight picked up faster than expected • Operational locations, including ferries Freight ferry volumes, %-change 2020 vs 2019 0% kept safe -5% • Freight volumes picked up through the quarter, particularly in June -10% -15% • Encouraging passenger demand on reopened routes…bu
Slide 4: Q2 earnings mainly reduced by passenger activities
Q2 earnings mainly reduced by passenger activities Q2 EBITDA before special items • DFDS Group revenue down 34% and EBITDA DKK m down 49% vs 2019 2020 507 • EBITDA reduced DKK 483m – of which 2019 989 DKK 366m from passenger activities 2018 948 • Ferry operating leverage ‘only’ 39%* as layup strateg
Slide 5: Q2 2020 – income statement and key figures
Q2 2020 – income statement and key figures • Revenue decrease 34%. Passenger revenue down 86% Change Change DKK m Q2 20 Q2 19 vs LY % REVENUE 2,798 4,241 -1,443 -34% • EBITDA-margin decrease mainly reflects drop in EBITDA BEFORE SI 507 989 -483 -49% passenger activity. Logistics’ margin improved 0.6
Slide 6: Ferry - Covid-19 impacted all units. Freight volumes down 15%
Ferry - Covid-19 impacted all units. Freight volumes down 15% • North Sea down DKK 90m. Volumes down 19% Total EBITDA* of DKK 393m vs DKK 891m in 2019 adjusted for Gothenburg-Zeebrugge. Large drop in DKK m automotive volumes. Negative variance from DfT -90 350 income in Q2 2019 • Baltic Sea down DKK
Slide 7: Logistics - Continent and UK & Ireland on level. Volumes down 17%
Logistics - Continent and UK & Ireland on level. Volumes down 17% • Nordic down DKK 10m and DKK 3m adjusted for Total EBITDA* of DKK 94m vs DKK 101m in 2019 one-off costs. Volumes down 15% DKK m • Lower result for all automotive activities 50 • Strong June result and tight cost control helped -2 mos
Slide 8: Major adaptations in Q2
Current situation MAJOR ADAPTATIONS IN Q2 Click icon to add picture
Slide 9: Two-phased adaptation to market situation post Covid-19
Two-phased adaptation to market situation post Covid-19 Phase 1 adaptation • First phase: Initial response to rapid • Operational sites and offices kept safe change in customer demand in both • Suspension mid-March of two passenger routes, freight and passenger markets Copenhagen-Oslo and Amsterdam-
Slide 10: Phase two adaptation – commercially stronger and leaner
Phase two adaptation – commercially stronger and leaner • Business structure simplified and Phase 2 adaptation commercial focus strengthened • Merger of industry sales of large freight customer solutions, involving both ferry and logistics operations, into one unit to drive industry sales across the
Slide 11: Financial position adapted and solid
Financial position adapted and solid • Committed facilities expanded DKK m DFDS - committed liquidity resources post Covid-19 outbreak in March 4,500 4,000 • Current committed facilities 3,500 >3.5bn and cash funds of 3,000 2,150 DKK 0.6bn 2,500 2,000 4,098 • Covenants of U. N. Ro-Ro -560 318 acquis
Slide 12: Outlook
Current situation OUTLOOK Click icon to add picture
Slide 13: Freight volumes – is current pickup sustainable?
Freight volumes – is current pickup sustainable? • Positive volume recovery trend continued in July Freight ferry volumes, %-change 2020 vs 2019 5% • Volume pickup slower for automotive sector – 0% uncertainty remains high -5% • Ferry capacity from competitors returning -10% • TRY-weakness increases
Slide 14: Encouraging pickup in demand from passengers, but…
Encouraging pickup in demand from passengers, but… • All passenger services have resumed • Copenhagen-Oslo, 25 June Total DFDS passenger revenue 2019 • Channel, 10 July - DKK 2.7bn • Amsterdam-Newcastle, 15 July 10% • Initial positive development for Oslo- Frederikshavn-Copenhagen route - vulnerable
Slide 15: EBITDA outlook firmed up
EBITDA outlook firmed up • Q2 EBITDA was ahead of forecast and positive DKK bn Outlook: EBITDA before special items volume trend continued in July 4.0 • Uncertainty remains elevated due to a number of 3.5 risks: Likely to be 3.0 reduced towards • Reversal of current rebound as job losses hit demand
Slide 16: Well positioned to meet challenges and opportunities
Well positioned to meet challenges and opportunities • Major adaptations completed • Freight network shows resilience • Passenger activities in recovery phase – still vulnerable to development in Covid-19 • New opportunities can arise from structural market changes 16
Slide 17: Q&A
Q&A