Slide 1: Record Q3 Result
RECORD Q3 RESULT Q3 2015 19 November 2015
Slide 2: Contents
Contents • Overview • Q3 2015 • Outlook 2015 • Channel • Financial leverage • Strategy, goals and priorities • Appendix: BU overview The statements about the future in this announcement contain an element of risk and uncertainty, both in general and specific terms, and this means that actual develop
Slide 3: Customer focus and efficiency measures paying off
Customer focus and efficiency measures paying off • Investments in topline focus and efficiency projects enabled us to benefit effectively from growth in key markets and achieve a record Q3 result • Organic revenue growth of 11% converted to a 35% increase of EBITDA driven by the high operating leve
Slide 4: Q3 2015 – EBITDA up by 35% to DKK 843m
Q3 2015 – EBITDA up by 35% to DKK 843m EBITDA before special items, Q3 2015 DKK m • 9% higher freight shipping volumes and 950 Margin: 22.2% 11% more passengers 850 750 Margin: 17.5% • Higher unit revenues for both freight and 650 passengers 550 450 816 350 584 • High profit conversion from operatin
Slide 5: Q3 2015 in numbers
Q3 2015 in numbers Change Change 1 DKK m Q3 15 Q3 14 vs LY % • Revenue growth of 6% - 11% adjusted for REVENUE 3,792 3,567 225 6% closure of routes in 2014 EBITDA BEFORE SI 843 626 218 35% margin, % 22.2 17.5 4.7 n.a. • Increase in depreciation mainly due to P/L associates -3 -2 -2 n.a. scrubber ins
Slide 6: EBITDA outlook 2015 raised to DKK 2.0-2.1bn
EBITDA outlook 2015 raised to DKK 2.0-2.1bn • Q3 EBITDA above expectations for the quarter NEW OUTLOOK 2015 • Robust volume growth of freight and passengers continued into October in most • Revenue up by around 4% (3%), areas and up by around 6% (5%) adjusted for route closures and • Route capacity
Slide 7: 2015: update on major performance drivers
2015: update on major performance drivers Likely Expected Uncertain Macro drivers • Positive impact • Resolution of • Level of • Russian market from closed routes structural competitive demand as expected overcapacity in pressure Channel no change completed ahead of outlook • Procurement • Volume gr
Slide 8: Record Q3 result in Channel
Record Q3 result in Channel • Q3 EBIT increased to DKK 178m compared to DKK 80m in 2014 Channel, EBIT DKK m • Revenue growth of 22% driven by 5% higher freight volumes and 10% more 180 passengers as well as rising unit revenues 130 • Overflow of volumes from temporary shutdowns of Eurotunnel due to
Slide 9: Leverage further reduced by strong cash flow
Leverage further reduced by strong cash flow • The NIBD/EBITDA multiple was 1.0 at the end of Q3 NIBD/EBITDA Target minimum leverage 2.0 • NIBD was DKK 2.0bn at the end of Q3 2015, 1.8 1.8 1.8 down from DKK 2.5bn at year-end 2014 1.6 1.7 1.7 1.4 0.5 • Financial leverage was thus reduced by both Time
Slide 10: Strategy, goals and priorities
Strategy, goals and priorities DFDS’ strategy drivers: Priorities 2015 - UNCHANGED • The DFDS Way: Customer focus and continuous improvement 1. Customer focus • Network strength: Expand to leverage operating 2. Efficiency and improvement projects model 3. MGO transition • Integrated shipping and log
Slide 11: YN fff
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Slide 12: Appendix - EBIT per BU
Appendix - EBIT per BU • North Sea: 12.0%* higher freight volumes. Continued DFDS Group EBIT development Q3 2015 (adjusted for route closures in 2014) high UK-Continent market growth. Scandinavia- DKK m UK/Continent more subdued. Positive impact from 640 scrubbers and port terminals 620 • Baltic Sea