Slide 1: Set for further growth
Set for further growth 28 February 2022
Slide 2: Content
Content • About DFDS • FY and Q4 overview Agenda • 2022 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: Current situation 2022 Outlook
v Current situation 2022 OUTLOOK Click icon to add picture
Slide 4: Current situation 2022 Outlook
v Current situation 2022 OUTLOOK Click icon to add picture
Slide 5: DFDS' ferry and logistics network
DFDS’ ferry and logistics network • DKK 18bn revenue • DKK 3.4bn EBITDA • 10,000 employees • 26 routes – incl. 9 passenger routes • 8 port terminals • 60+ logistics locations 5
Slide 6: DFDS' business model builds on 3 core activities
DFDS’ business model builds on 3 core activities Ferry routes Door-door solutions Contract logistics For dry goods and cold chain For dry goods and cold chain Catchment area A Pickup point Port terminal A Port terminal A Freight & passengers Port terminal B Port terminal B Delivery point Catchment a
Slide 7: Roll on, roll off – freight ferry business model
Roll on, roll off – freight ferry business model • Ro-ro/ro-pax shipping: roll on, roll off of freight units and passenger cars • Routes carry both unaccompanied and accompanied trailers • Our largest freight ferries can carry 450 trailers equal to 6.5 km of deck length
Slide 8: DFDS structure, ownership and earnings split
DFDS structure, ownership and earnings split DKK bn Revenue per division DFDS Group 1 18 3 1 Ferry Division Logistics Division 13 11 Eliminations and other 9 10 Ferry Division, passenger • North Sea • Dry Goods 8 Ferry Division, freight • Baltic Sea • Cold Chain Logistics Division • Channel 3 5 7 5
Slide 9: Business units – EBITDA, invested capital and ROIC, 2021
Business units – EBITDA, invested capital and ROIC, 2021 North Sea Mediterranean Logistics* Channel Baltic Sea Passenger EBITDA, 1.3 0.4 DKK bn 1.1 0.5 0.4 0.4 -0.4 Invested capital, DKK bn 6.4 9.4 2.5 1.9 1.6 0.7 ROIC 11% 6% 9% -1% 14% neg. *FY pro forma with HSF Logistics Group 9
Slide 10: DFDS strategic profile summary
DFDS strategic profile summary UNIQUE FERRY CREATING VALUE INFRASTRUCTURE AND PRIORITISING ESG THROUGH GROWTH LOGISTICS SOLUTIONS • Transport corridors combining • Organic GDP growth, commercial • Zero-emission 2050 footprint ferry infrastructure and logistics initiatives and M&A ambition solutions
Slide 11: Possible impacts from Ukraine conflict
Possible impacts from Ukraine conflict • Ferry routes in Baltic Sea carry freight volumes related to Russia and CIS countries • Main Logistics exposure is newly acquired ICT Logistics specialised in transport solutions to Russia and CIS countries, including Ukraine and Belarus • Logistics offices in
Slide 12: Normalisation of passenger travel and volumes
Normalisation of passenger travel and volumes • Three passenger activities key for Passengers normalisation: '000 • Oslo-Frederikshavn-Copenhagen 4,000 (OFC) 3,520 • Amsterdam-Newcastle (AN) 3,000 • Channel • OFC passengers mix of holiday and 2,000 leisure, of which around 125k overseas passengers 1
Slide 13: Integration of HSF Logistics Group on track
Integration of HSF Logistics Group on track • HSF Logistics Group consolidated from 14 September • DKK 75m of synergies expected with full run-rate impact from end 2023 • Five integration focus areas: • Commercial • Operations • Procurement • IT • Business support 13
Slide 14: Key ESG focus areas in 2022
Key ESG focus areas in 2022 • Choice of fuel type for first generation green freight ferries • Ferry engine technology development • Green fuel availability – partnerships and commitments • Deployment of electric trucks • Raise female gender ratio further, especially for specific job types • New str
Slide 15: Key strategy focus areas in 2022
Key strategy focus areas in 2022 • Grow solutions: Focus on Automotive and Forest & Metal • Digitise: Customer solutions for Logistics • Develop and expand: Deployment of two Baltic new-buildings. Grow by acquisitions • Value for passengers: Regain volumes, duty- free sales development, new concepts
Slide 16: Q4 & FY 2021
Current situation Q4 & FY 2021 Click icon to add picture
Slide 17: Set to grow further in 2022 on back of strong result for 2021
Set to grow further in 2022 on back of strong result for 2021 • Full-year EBITDA up 25% to DKK 3.4bn DKK m 2021 EBITDA development vs LY for 2021 3,600 10 0 • Growth driven by freight as passenger 131 result remained on level with 2020 3,200 due to Covid-19 538 2,800 • Mediterranean achieved strong
Slide 18: Q4 EBITDA: HSF, Mediterranean, and passengers improved earnings
Q4 EBITDA: HSF, Mediterranean, and passengers improved earnings • DFDS Group EBITDA up 19% DKK m Q4 EBITDA before special items 2021 915 • Ferry freight EBITDA on level as tough UK 2020 769 stockbuilding comps offset higher earnings in Mediterranean and on new routes 2019 771 0 200 400 600 800 1,000
Slide 19: Q4 2021 income statement
Q4 2021 income statement DFDS Group P/L • Revenue up 46% driven by the HSF acquisition, DKK m Q4 20 Q4 21 Δ Δ Revenue 3,761 5,482 1,721 46% higher bunker surcharges, and more passenger revenue EBITDA* 769 915 146 19% Margin 20.5% 16.7% -3.8% Ferry Division 668 742 73 11% • Depreciation up DKK 121m m
Slide 20: Q4 capital overview – strong operational cash flow
Q4 capital overview – strong operational cash flow • Assets increased DKK 3.8bn mainly due to DKK m Q4 20 Q4 21 Δ Δ HSF consolidation Non-current intangible assets 4,901 6,252 1,351 28% Non-current tangible assets 16,867 19,188 2,321 14% Total assets 27,006 30,783 3,778 14% • Operating cash flow up
Slide 21: Ferry Division – Mediterranean growth, tough UK comps
Ferry Division – Mediterranean growth, tough UK comps Total EBITDA* of DKK 741m vs DKK 668m in 2020 • North Sea down DKK 17m due to DKK m boost from UK stockbuilding in 2020. -17 Supply chain bottlenecks eased 350 +67 through the quarter 250 • Mediterranean up DKK 67m driven by 150 -27 6% higher adj
Slide 22: Ferry Division – passenger volumes started to pick up
Ferry Division – passenger volumes started to pick up Total EBITDA* of DKK 741m vs DKK 668m in 2020 DKK m • Baltic Sea on level with 2020 as -17 lower volumes were offset by cost 350 +67 decreases 250 • Passenger up DKK 56m mainly due -27 150 to higher passenger volumes on +0 Norway-Denmark route 50
Slide 23: Logistics – boost from HSF, margin pressure in forwarding
Logistics – boost from HSF, margin pressure in forwarding • Dry Goods down DKK 20m as time lags in DKK m Total EBITDA* of DKK 211m vs DKK 123m in 2020 cost coverage and higher own costs lowered 175 forwarding margins +108 • Contract logistics and specialised services 150 improved 125 100 -20 • Cold
Slide 24: 2022 Outlook
Current situation 2022 OUTLOOK Click icon to add picture
Slide 25: Key freight outlook assumptions for 2022
Key freight outlook assumptions for 2022 DKK m Outlook 2022 2021 • Ferry: UK freight market expected to grow after some slowdown in 2021 Revenue growth 23-27% 17,869 • Further growth expected for EBITDA before special items 3,900-4,400 3,411 Mediterranean Per division: Ferry Division 3,050-3,450 2,8
Slide 26: Key passenger outlook assumptions for 2022
Key passenger outlook assumptions for 2022 DKK m Outlook 2022 2021 • Around 50% of DKK 1bn EBITDA decrease in 2020 and 2021 is Revenue growth 23-27% 17,869 expected to be regained EBITDA before special items 3,900-4,400 3,411 • This includes a positive impact from Per division: duty-free sales, main
Slide 27: Q&A
Q&A
Slide 28: Win23 – on track to meet growth strategy ambitions
Win23 – on track to meet growth strategy ambitions • Mediterranean set to deliver on 2018 business plan target • Around 21 ferries to be deployed in 2022 up from 14 in 2018 • M&A growth • HSF Logistics Group • ICT Logistics • Huisman • Freeco • Brexit opportunities • New route Rosslare (IRL)-Dunkirk
Slide 29: Win23 – current 'macro' challenges expected to impact 2022 as well
Win23 – current ‘macro’ challenges expected to impact 2022 as well • Covid-19 • Main impact on passenger volumes • Brexit transition headwind • UK-EU trade complicated by new rules • Final implementations in 2022 • UK import volumes from EU reduced in 2021 by mix of Covid-19, Brexit and supply chain
Slide 30: North Sea
North Sea • Only freight ferry routes (ro-ro) • High share of industrial customers Sweden-UK/Continent • Forwarders main customer group UK-Continent • 17 freight ferries and 2 sideport ships 30
Slide 31: Mediterranean
Mediterranean • Freight ferry routes connecting Europe and Turkey • Turkish forwarders and hauliers main customer group • 20 freight ferries 31
Slide 32: Channel
Channel • Combined freight and passenger ferry routes (ro-pax) • Rosslare-Dunkirk and Calais-Sheerness freight-only routes • Forwarders main freight customer group • Seasonal passenger market, Q3 high season • 10 combined ferries, 1 freight ferry 32
Slide 33: Baltic Sea
Baltic Sea • Freight ferry (ro-ro) and combined freight and passenger ferry routes (ro-pax) • Forwarders main freight customer group • 10 ferries, mix of combined and freight ferries 33
Slide 34: Passenger
Passenger • Cruise ferry routes, overnight crossings • Seasonal passenger market, Q3 high season • Overseas passengers between Norway and Denmark • Also carries freight • 4 passenger ferries 34
Slide 35: Logistics
@ Dry Goods Cold Chain | | — Container routes, VSA Logistics (ves Sharing Reena)