Slide 1: Outlook raised after strong Q2
OUTLOOK RAISED AFTER STRONG Q2 DFDS GROUP Q2 2016 18 August 2016
Slide 2: Contents
Contents • Overview • Q2 numbers • Cash flow and capital distribution • Channel • Outlook 2016 • Focus areas H2 2016 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.
Slide 3: Strong Q2 for both Shipping and Logistics
Strong Q2 for both Shipping and Logistics DFDS Group - EBITDA before special items, Q2 DKK m • Q2 benefitted from continued growth in freight 750 markets and competitive stability – 9% growth in 650 freight shipping other than Channel 550 450 650 350 • Channel’s freight volume growth of 63% exceeded
Slide 4: Full-year outlook raised to DKK 2.45-2.60bn
Full-year outlook raised to DKK 2.45-2.60bn DFDS Group - EBITDA before special items DKK bn • ROIC LTM* Q2 increased to 16.4% (2015: 13.7%) 2,7 EBITDA for LTM Q2 before special items 2,5 of DKK 2,365m 2,3 2,1 • No material signs of a slowdown following Brexit 1,9 in reported shipping volumes, July/A
Slide 5: Channel was a key EBIT driver in Q2
Channel was a key EBIT driver in Q2 • Channel +98m: Result improved by higher volumes Q2 2016: DFDS Group EBIT development vs LY and higher unit revenues, primarily from freight 480 • North Sea +17m: Benefits from capacity increases 460 on key routes and higher earnings in port terminals -33 6 -2 -1
Slide 6: Q2 2016 in numbers
Q2 2016 in numbers Change Change DKK m Q2 16 Q2 15 vs LY % • 7% revenue growth excluding revenue from bunker surcharges - currency impact of -2.6 ppt. REVENUE 3,553 3,432 121 4% Reported revenue growth of 4% EBITDA BEFORE SI 699 551 148 27% margin, % 19.7 16.1 3.6 n.a. • High operating leverage in S
Slide 7: Strong cash generation reduces leverage
Strong cash generation reduces leverage Cash flow overview • LTM operating cash flow after tax of DKK m Q2 2016 2015 LTM Q2 2016 DKK 2.6bn boosted by reduction in working EBITDA 699 2,041 2,365 capital Change in working capital 88 199 278 Other -42 -19 -42 • Conversion of EBITDA into operating cash
Slide 8: Distribution to shareholders increased to DKK 1.25bn in 2016
Distribution to shareholders increased to DKK 1.25bn in 2016 Capital distribution overview • Interim dividend raised to DKK 3.00 per share from the previously planned DKK 2.00 per DKK m 2016, expected 2015 share New Previous Buyback 1 400 400 101 • New share buyback of DKK 350m launched Buyback 2 25
Slide 9: EBITDA outlook for 2016 raised to DKK 2.45-2.6bn
EBITDA outlook for 2016 raised to DKK 2.45-2.6bn • Moderate growth in Europe expected to continue in second half of 2016 – although UK growth at risk following Brexit NEW OUTLOOK 2016 • Freight shipping volumes still encouraging in most markets • Revenue growth of around 6%, excluding revenue from b
Slide 10: Strong freight volumes on Channel in Q2
Strong freight volumes on Channel in Q2 Channel freight volume growth YOY, 2015-2016 • Freight market volumes were up by 15% 7.1% in Q2 2016 10% • The YOY growth per rolling year was 5% in June at 2.4% with a positive trend 0% • Car market volumes were down by -5% 8.3% in Q2 2016, including a decrea
Slide 11: 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 dynamics after slowdown? – implemented expected at 15-20% deployment of increased risk upg
Slide 12: Focus areas in second half of 2016
Focus areas in second half of 2016 Continuous improvement: Achieving benefits from projects Customer satisfaction – growing the topline Keeping costs in line Monitoring Brexit and adapting to change in GBP Fleet renewal: Charter of two freight ship (ro-ro) new buildings for delivery in
Slide 13: Aiming higher in 2016
AIMING HIGHER IN 2016 Q&A . 13