Slide 1: Increasing freight earnings Q3 2020
Increasing freight earnings Q3 2020 12 November 2020 Click icon to add picture
Slide 2: Agenda
Content • Overview • Q3 numbers Agenda • Brexit • Outlook 2020 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: Q3 above forecast as freight grows and adaptations take effect
Q3 above forecast as freight grows and adaptations take effect Freight ferry volumes, %-change 2020 vs 2019 • Continued focus on keeping 5% operational locations safe, including ships 0% -5% • Q3 freight ferry volumes up 1%* vs -10% 2019 – October volumes up 2%* -15% • Efficiency enhanced by adaptat
Slide 4: Q3 earnings: Freight increased, passenger severely reduced
Q3 earnings: Freight increased, passenger severely reduced • Group revenue down 20% and EBITDA Q3 EBITDA before special items down 29% vs 2019 DKK m • EBITDA decrease of DKK 349m includes 2020 846 passenger decrease of DKK 445m • Ferry freight EBITDA up DKK 87m driven by 2019 1,195 adaptation of ope
Slide 5: Q3 2020 income statement
Q3 2020 income statement DFDS Group P/L DKK m Q3 19 Q3 20 Δ Δ • Revenue decrease of 20% driven by lower Revenue 4,472 3,598 -875 -20% passenger revenue EBITDA* 1,195 846 -349 -29% • EBITDA down 29% due to the lower passenger Margin 26.7% 23.5% -3.2% Ferry Division 1,092 735 -358 -33% earnings. Margi
Slide 6: Q3 capital overview and key figures
Q3 capital overview and key figures • PPE increase of DKK 0.8bn, of which 58% related to newbuildings DKK m Q3 19 Q3 20 Δ Δ PPE* 16,370 17,137 767 5% • Rest of increase mainly due to port terminal and land & Total assets 25,844 26,707 863 3% buildings contract extensions Working capital 477 81 -396
Slide 7: Ferry - freight volumes recovered to above 2019 through the quarter
Ferry - freight volumes recovered to above 2019 through the quarter Total EBITDA* of DKK 735m vs DKK 1,092m in 2019 • North Sea down DKK 18m. Volumes up 2%. More DKK m efficient route set-ups due to newbuildings. Recovery in automotive volumes and positive 350 -18 impact from Brexit stockbuilding. N
Slide 8: Ferry – Mediterranean volumes picking up
Ferry – Mediterranean volumes picking up Total EBITDA* of DKK 735m vs DKK 1,092m in 2019 DKK m • Passenger down DKK 235m as revenue dropped DKK 411m equal to a 68% 350 decrease. Volumes down 90% in September -18 vs 2019 following tighter travel restrictions -98 250 -235 +27 -25 • Mediterranean up DK
Slide 9: Logistics – strong quarter as tight cost control raised margins
Logistics – strong quarter as tight cost control raised margins. Volumes just below 2019 • Nordic up DKK 12m as tight cost control of DKK m Total EBITDA* of DKK 145m vs DKK 106m in 2019 transport providers raised margins. Pick up in 60 +8 +19 automotive after Q2 slowdown. Finnish acquisition in line
Slide 10: Brexit & Outlook
Current situation BREXIT & OUTLOOK Click icon to add picture
Slide 11: Brexit – organisation and systems in place for transition
Brexit – organisation and systems in place for transition • Full customs clearance offering to customers • Customs organisation of more than 100 staff in place, including back office centre in Poland • DFDS operating systems being integrated with government systems • Requests for customs clearance s
Slide 12: EBITDA outlook raised by higher freight volumes
EBITDA outlook raised by higher freight volumes • EBITDA outlook raised on 23 October EBITDA before special items from DKK 2.2-2.5bn to DKK 2.5-2.7bn DKK bn 4.0 • Full-year freight volumes now expected 3.5 to decrease less than 5% vs 2019 3.0 2.5 • No futher downside risk on passenger 2.0 1.5 • Unce
Slide 13: Strategic priorities ahead of 2021
Strategic priorities ahead of 2021 • Manage Brexit transition as a business opportunity • Drive organic freight growth with new commercially stronger business structure • Increase Mediterranean ROIC • Prepare passenger activities for a post Covid-19 travel market • Expand freight offering to custome
Slide 14: Q&A
Q&A