Slide 1: Earnings further increased in Q3
EARNINGS FURTHER INCREASED IN Q3 DFDS GROUP Q3 2016 15 November 2016
Slide 2: Contents
Contents • Overview • Q3 numbers • Cash flow • Outlook 2016 • Focus areas going into 2017 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 2
Slide 3: Solid Q3 performance carried by continued high freight volumes
Solid Q3 performance carried by continued high freight volumes EBITDA before special items, Q3 DKK m • EBITDA increased by 15% to DKK 972m in Q3, 1,050 including an impact of DKK -45m from currency 950 850 • Positive operating environment in Q3 under- 750 650 pinned by steady progress in Europe’s ke
Slide 4: Channel and Baltic Sea key EBIT drivers in Q3
Channel and Baltic Sea key EBIT drivers in Q3 • Passenger +9m: negative impact from depreciation of Q3 2016: DFDS Group EBIT change vs LY GBP offset by lower bunker costs DKK m 740 • North Sea -9m: route result increased driven by 15 volume growth. Result reduced by lengthening of a 720 5 4 -7 14 sh
Slide 5: Q3 2016 in numbers
Q3 2016 in numbers Change Change • 7% revenue growth excluding revenue from DKK m Q3 16 Q3 15 vs LY % bunker surcharges and adjusted for currency REVENUE 3,799 3,792 7 0% changes. Reported revenue growth flat EBITDA BEFORE SI 972 843 129 15% margin, % 25.6 22.2 3.3 n.a. • EBITDA-margin increased in
Slide 6: Large Q3 impact from depreciation of GBP
Large Q3 impact from depreciation of GBP GBP/DKK exchange rate 2015-16 11.0 • GBP/DKK was 15.8% lower in Q3 2016 vs LY (SEK/DKK: -1.1%, NOK/DKK: -1.9%) 10.5 Brexit vote 10.0 • Peak impact in Q3 due to passenger high 9.5 season on Channel with 75% of revenue 9.0 in GBP 8.5 8.0 • Negative revenue curr
Slide 7: High season cash flow reduced financial leverage
High season cash flow reduced financial leverage • Q3 free cash flow (FCFF) was DKK 674m and Cash flow overview DKK 1.5bn for LTM DKK m Q3 2016 2015 LTM Q3 2016 EBITDA 972 2,041 2,494 • Positive cash flow from change in working Change in working capital -142 199 223 capital of DKK 223m for LTM Other
Slide 8: EBITDA outlook for 2016 raised to DKK 2,525-2,625m
EBITDA outlook for 2016 raised to DKK 2,525-2,625m • Moderate growth in Europe continued in Q3 and indicators look robust for Q4 as well – despite NEW OUTLOOK 2016 Brexit and US election • Revenue growth of around 4%, • Continued increase in freight shipping volumes excluding revenue from bunker ref
Slide 9: 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 upgraded ferries •
Slide 10: Focus areas going into 2017
Focus areas going into 2017 Continuous improvement: Roll out of DFDS WAY 2.0 Achieving benefits from projects Customer satisfaction – growing the topline Keeping costs in line Monitoring Brexit and adapting to the change in GBP Fleet renewal: deployment of two freight ship (ro-ro) new
Slide 11: Aiming higher in 2016 - Q&A
AIMING HIGHER IN 2016 Q&A . 11