Slide 1: Outlook raised for 2016 - DFDS Group Q1 2016
OUTLOOK RAISED FOR 2016 DFDS GROUP Q1 2016 12 May 2016
Slide 2: Contents
Contents • Overview • Q1 numbers • Financial leverage • Channel • Outlook 2016 • Strategy, goals and priorities The statements about the future in this announcement contain risks and uncertainties. This entails that actual developments may diverge considerably from the statements about the future. 2
Slide 3: Earnings improved throughout route network
Earnings improved throughout route network • The route network’s volume and unit revenue growth exceeded expectations in Q1: EBITDA before special items • Freight overflow to routes from Polish-Russian border dispute DKK bn • Channel volume growth stronger than foreseen 2.50 New outlook • 5% freight
Slide 4: Q1 2016 – EBITDA up by 77% to DKK 405m
Q1 2016 – EBITDA up by 77% to DKK 405m EBITDA before special items, Q1 DKK m • Three primary drivers of the EBITDA Margin: 12.6% increase: 450 350 • Baltic Sea boosted by an overflow of trucks from border dispute between Poland and 250 Margin: 10.3% 367 Russia, benefits from scrubbers and conversion
Slide 5: Baltic Sea and North Sea main EBIT drivers
Baltic Sea and North Sea main EBIT drivers Q1 2016: DFDS Group EBIT development vs LY • North Sea +41m: Highest volume and RPM 200 growth achieved on NS South routes 180 supported by increased capacity. Positive 13 2 2 -1 -4 impact on Vlaardingen port terminal. 160 Benefits from scrubber installatio
Slide 6: Q1 2016 in numbers
Q1 2016 in numbers Change Change 1 DKK m Q1 16 Q1 15 vs LY % • Reported revenue growth of 6% and 9% excluding revenue from bunker surcharges REVENUE 3,088 2,926 162 6% EBITDA BEFORE SI 405 228 177 77% • Operating costs reduced by lower bunker margin, % 13.1 7.8 5.3 n.a. costs and EBITDA-margin incre
Slide 7: Leverage increased by Channel ferries & share buyback
Leverage increased by Channel ferries & share buyback • The NIBD/EBITDA multiple increased to 1.3 at the end of Q1 NIBD/EBITDA • NIBD increased from DKK 1.8bn at year-end 2016 2.0 Target leverage to DKK 3.0bn at the end of Q1 2016 due to the capitalisation of two Channel ferries and 1.8 1.8 1.8 comp
Slide 8: Capacity increase on Dover-Calais completed
Capacity increase on Dover-Calais completed Channel freight volume growth YOY, 2015-2016 • 3-ferry operational set-up in place on Dover- 15% Calais since end of February 10% • High volume growth also expected for DFDS in Q2 as only one ferry was operated on Dover- 5% Calais in most of Q2 2015 0% • T
Slide 9: EBITDA outlook for 2016 raised to DKK 2.3-2.5bn
EBITDA outlook for 2016 raised to DKK 2.3-2.5bn • Moderate economic growth in Europe continuing in 2016 as expected NEW OUTLOOK 2016 • Freight and passenger volumes are consequently growing – growth trends on the Baltic Sea, the • Revenue growth of around 6%, English Channel and parts of the North S
Slide 10: 2016 outlook: update of major performance drivers
2016 outlook: update of major performance drivers Certain/Likely Expected Uncertain Macro drivers • Capacity expansion: • Freight shipping • Channel competitor • UK economy – Channel, North Sea - volume growth raised dynamics after slowdown? implemented to 15-20% (8-10%) deployment of upgraded ferri
Slide 11: Strategy, goals and priorities
Strategy, goals and priorities People: succession planning, talent DFDS’ strategy drivers: programme, transformation office • The DFDS Way: Continuous improvement of The DFDS Way: further development of customer focus and efficiency operating model • Route network expansion to leverage operating
Slide 12: Aiming higher in 2016 - Q&A
AIMING HIGHER IN 2016 Q&A . 12