Dfds A/s · OMXCOP:DFDS
Dfds A/s — Non-Deal Roadshow (June 2022)
35 slides from Dfds A/s's roadshow presentation, Jun 20, 2022
Slide 1: Good start to 2022
Ferry & Logistics Good start to 2022 June 2022
Slide 2: Content
Content • About DFDS • Capex & capital distribution Agenda • Q1 overview • 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: 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 4: DFDS' ferry and logistics network
DFDS’ ferry and logistics network • Revenue DKK 18bn • EBITDA DKK 3.4bn • 11,000 employees • 26 routes – incl. 9 passenger routes • 8 port terminals • 60+ logistics locations *2021 4
Slide 5: DFDS' strategy
DFDS’ strategy • Automotive • Easy access for • Mediterranean • Develop on • Climate Action Plan customers business plan board customer • Develop green • Forest & Metal • Value-adding fulfillment experience transport corridors • Cold Chain services • Ferry new building • Business • Operational benef
Slide 6: Capex & capital distribution
Current situation CAPEX & CAPITAL DISTRIBUTION Click icon to add picture
Slide 7: Capital distribution resumed in 2022 after Covid-19
Capital distribution resumed in 2022 after Covid-19 • Dividend on hold 2020-21 as Covid- Distribution to shareholders, DKK m 2017 2018 2019 2020 2021 Dividend paid per share, DKK 19 raised NIBD/EBITDA above 4x Total dividend paid ex. treasury shares 10.00 555 4.00 219 4.00 229 0 0 0 0 Buyback of sha
Slide 8: CAPEX set to decline following completion of newbuilding program
CAPEX set to decline following completion of newbuilding program • 6 freight ferry newbuildings delivered Capex 2019-2021 DKK bn 5.0 • 2 combined freight & passenger ferries 4.0 delivered 2021-2022 3.0 • CAPEX set to decline next couple of 2.0 years following completion of current newbuilding progra
Slide 9: Current situation Q1 2022
Current situation Q1 2022 Click icon to add picture
Slide 10: Well under way to raise earnings more than 20% in 2022
Well under way to raise earnings more than 20% in 2022 Ferry volumes, y/y-change - 2022-21 • Q1 results in line with expectations Freight Passengers • Logistics EBITDA doubled by HSF Logistics 60% 1200% Group and higher margins 50% 1000% Freight recovery Passenger recovery from Covid-19 from Covid-1
Slide 11: Q1 2022 – earnings growth held back by 2021 Brexit standby income
Q1 2022 – earnings growth held back by 2021 Brexit standby income • DFDS Group revenue up 52% and EBITDA Q1 EBITDA before special items up 9% to DKK 822m DKK m 2022 822 • Profit conversion impacted by Oslo- Frederikshavn-Copenhagen re-opening, 2021 750 rising oil surcharges, and Brexit standby incom
Slide 12: Revenue growth boosted by acquisitions and passenger recovery
Revenue growth boosted by acquisitions and passenger recovery • Revenue up 52% driven by: Revenue change, Q1 2022 vs Q1 2021 DKK m • Recovery of passenger volumes, including 5,900 re-opening of Oslo-Frederikshavn-CPH 5,400 • Freight ferry volume growth plus 890 considerable oil surcharge increase as
Slide 13: Ferry Division – positive underlying development
Ferry Division – positive underlying development • North Sea up DKK 13m despite Brexit standby Total EBITDA* of DKK 598m vs DKK 641m in 2021 agreement income in Q1 2021. Underlying DKK m improvement driven by 5% higher volumes +13 350 and RPM growth +45 • Mediterranean up DKK 45m driven by 12% 250 h
Slide 14: Ferry Division – Baltic impacted by war in Ukraine
Ferry Division – Baltic impacted by war in Ukraine Total EBITDA* of DKK 598m vs DKK 641m in 2021 • Baltic Sea down DKK 32m as war in DKK m Ukraine reduced freight volumes between mainly Germany and Lithuania 350 +13 +45 • Ferry running costs increased by high number of dockings and deployment of 250
Slide 15: Logistics - earnings lifted by HSF and higher Dry Goods margin
Logistics - earnings lifted by HSF and higher Dry Goods margin • Dry Goods up DKK 39m driven by improved Total EBITDA* of DKK 216m vs DKK 101m in 2021 cost coverage from increased prices and DKK m surcharges related to fuel and EU Mobility 125 +39 +77 Package • Performance improved across Nordic, 10
Slide 16: 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 16
Slide 17: 2022 Outlook
Current situation 2022 OUTLOOK Click icon to add picture
Slide 18: Outlook 2022 – revenue growth raised to around 30%
Outlook 2022 – revenue growth raised to around 30% • Revenue growth raised to around 30% from DKK m Outlook 2022 2021 previously 23-27% Revenue growth Around 30% 17,869 • Increase mainly due to significantly higher EBITDA before special items 3,900-4,400 3,411 revenue from oil surcharges Per divisio
Slide 19: Key current priorities
Key current priorities • Cost coverage • Adapt to EU Mobility Package • Monitor haulage supply and plan for possible bottlenecks • Passenger recovery: Regain volumes, duty- free sales, optimise new concepts • Baltic Sea newbuilding deployment • ESG - environmental transformation, safety, diversity &
Slide 20: 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 21: ae ELECTRIC =
a <i i ae ELECTRIC =
Slide 22: 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 23: High-level intro
o—* Freight route Freight and passenger route &--© Rail connections Our key freight and passenger offerings Freight Passenger Ferry transport of freight units, accompanied and unaccompanied Port terminal services Rail Solutions Special Cargo Short sea ferry Overnight ferry Mini cruise Packaged break
Slide 24: High-level intro
Our key logistics offerings Dry Goods Cold Chain Door-door forwarding, Door-door forwarding, full & part loads full & part loads Wee bo Warehousing and i ae cross-docking Storage and cross-docking vee tee a. rss) Distribution Distribution centres tanner a x Lo Just-in-sequence SO ae Rental and clean
Slide 25: Ferry types
Ferry types The route network deploys 65 ferries Day ferry (ro-pax), Channel Freight ferry (ro-ro) Combined freight and passenger ferry (ro-pax) Cruise ferry
Slide 26: Freight ferry
Freight ferry • Our largest freight ferries carry 450 trailers equal to 6.5 km of deck length • Turnaround time in port of 7 to 9 hours • Crew of around 15 • Newbuildings lower bunker consumption by 30% when fully utilised
Slide 27: 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 28: 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 29: 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 29
Slide 30: Executive Management Team (EMT)
Executive Management Team (EMT) Peder Gellert Torben Carlsen Karina Deacon Pedersen Executive Board: • Torben Carlsen, CEO • Karina Deacon, CFO Extended management team: Anne-Christine Niklas Andersson Rune Keldsen Ahrenkiel • Peder Gellert Pedersen, Head of Ferry Division • Niklas Andersson, Head o
Slide 31: Q1 2022 income statement
Q1 2022 income statement DFDS Group P/L DKK m Q1 21 Q1 22 Δ Δ • EBITDA up 9% driven by freight. Revenue Revenue 3,768 5,725 1,957 52% components with no or negative profit conversion: Oil/fuel surcharges, passenger EBITDA* 750 822 71 9% Margin 19.9% 14.4% -5.6% revenue due to OFC re-opening, Brexit
Slide 32: Q1 capital overview – last ferry newbuilding delivered
Q1 capital overview – last ferry newbuilding delivered DKK m Q1 21 Q1 22 Δ Δ • Assets increased DKK 4.6bn mainly due to Non-current intangible assets 4,899 6,267 1,368 28% HSF consolidation and newbuildings Non-current tangible assets 16,971 20,158 3,188 19% Total assets 27,820 32,450 4,630 17% • Op
Slide 33: Channel – freight market share development
Channel – freight market share development Channel freight market shares, 2021-2022 • Total Q1 freight volumes up 14.3% 45% 40% 35% • Market shares impacted from March 30% 25% 17 by P&O Ferries’ suspension of 20% sailings 15% 10% 5% 0% • P&O Ferries and Irish Ferries both Jan Feb Mar Apr May Jun Jul
Slide 34: Channel – passenger car market share development
Channel – passenger car market share development Channel car market shares, 2020-2021 • Total Q1 passenger car volumes up 90% 175.2% 80% 70% 60% 50% • Market shares likewise impacted 40% from March 17 by P&O Ferries’ 30% 20% suspension of sailings 10% 0% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov D
Slide 35: Normalisation of passenger travel and volumes
Normalisation of passenger travel and volumes Passengers • Three passenger activities key for '000 normalisation: • Oslo-Frederikshavn-Copenhagen 4,000 3,520 (OFC) • Amsterdam-Newcastle (AN) 3,000 • Channel 2,000 • OFC - mix of holiday and leisure, of which around 125k overseas passengers in 2019 1,