Slide 1: Working through headwinds
Working through headwinds Q3 2024 investor call, 7 November 2024
Slide 2: Q3 2024 investor call agenda
Q3 2024 investor call agenda • Strategy update • Q3 overview • Moving to Green • Capital distribution • Outlook & priorities 2
Slide 3: Moving Together Towards 2030 – Moving to green
Moving Together Towards 2030 – Moving to green Moving Together Towards 2030 Unlock network value, 2024-2026 • Protect & Grow Profits • Standardise to simplify • Digitise to transform • Moving to green • Be a great place to work Green transition, 2024-2030 • 45% reduction in ferry emission intensity
Slide 4: Financial ambitions 2024-2026/27
Financial ambitions 2024-2026/27 • Group Q3 LTM ROIC at 6% • Q3 capex as expected • Q3 adjusted free cash flow of • Q3 2024 NIBD/EBITDA of 3.3x DKK 0.4bn • Ferry at 8% - North Sea above • Capex 2024 outlook reduced to ambition, Channel at 8%, Baltic DKK 1.4bn from DKK 1.5bn • Adjusted free cash flow
Slide 5: Working through market & operational headwinds
Working through market & operational headwinds Q3 was a challenging Q4 market outlook – from Earnings outlook revised Strategy – unlock value of quarter as expected rebound to slowdown expanded network 4% organic revenue European demand slow- Q3 result below Organic growth focus growth achieved down
Slide 6: Balanced growth outlook for our transport network
Balanced growth outlook for our transport network Strait of Logistics ‘70%’ at Logistics ‘30%’ North Sea Mediterranean Channel Baltic Sea Gibraltar 4% EBIT-margin challenged Market growth, freight Market growth, n.a. n.a. n.a. n.a. passengers Competition Stable Rising Stable High Stable Stable High
Slide 7: Network strength & customer centric
Network strength & customer centric • Unique combination of ferry, road & rail in corridors/regions and logistics solutions • Strong people, operational skills & resilience • Customer centric – also in challenging periods • Value proposition – reliability, frequency & efficiency • Track record of ov
Slide 8: Group EBIT lowered by market headwinds
Group EBIT lowered by market DKK m DFDS Group - Q3 EBIT headwinds 2024 785 2023 886 2022 968 • Group Q3 revenue up 11% and organic 2021 360 growth up 4% 2020 326 • Q3 EBIT of DKK 785m down 11% 0 100 200 300 400 500 600 700 800 900 1,000 • Ferry Q3 EBIT down 3% to DKK 792m due to lower freight result
Slide 9: Q3 2024 income statement
Q3 2024 income statement DFDS Group, DKK m Q3 23 Q3 24 Δ Δ • Revenue growth of 11% detailed on next Revenue 7,190 7,965 776 11% slide EBITDA 1,556 1,508 -47 -3% • EBITDA down 3% following lower result in Margin 21.6% 18.9% -2.7% the Logistics Division - Ferry Division Other income/costs, net -7 5 12
Slide 10: 4% organic revenue growth in Q3
4% organic revenue growth in Q3 Change in revenue, Q3 2024 vs Q2 2023 DKK m • Group organic growth* was 3.9% 8,000 -74 • Freight ferry organic revenue on level as lower rates offset volume growth 502 7,750 • Passenger organic revenue up 6.5% driven primarily by Channel 7,500 • Logistics organic reve
Slide 11: Ferry Division – freight lower, passenger up
Ferry Division – freight lower, DKK m Ferry Division - Q3 EBIT vs LY passenger up 825 9 800 -33 18 -44 814 27 • Freight Ferry EBITDA* down 7% or 775 792 DKK 33m driven mainly by rate pressures 750 Q3 2023 Freight ferry Passenger Other Depreciation & Acquisition & Q3 2024 EBITDA EBITDA amortisation o
Slide 12: Logistics Division – 70% of revenue stable at 4% margin
Logistics Division – 70% of DKK m Logistics Division - Q3 EBIT vs LY revenue stable at 4% margin 125 100 -51 75 2 116 • EBITDA decrease of DKK 51m -13 50 • EBITDA for 70% of revenue was above -4 50 2023 driven mainly by resilient 25 UK/Ireland, turnaround/restructurings Q3 2023 EBITDA Other Deprecia
Slide 13: Cash flows & capital
Cash flows & capital • Operating cash flow down 9% vs 2023 DKK bn Q3 2023 Q3 2024 Δ Δ Q3 LTM 2024-23 to DKK 1.0bn driven by negative working capital impact from passenger Cash flows Operating cash flow 1.1 1.0 -0.1 -9% 3.4 prepayments ahead of Q3 Capex • Operating capex of DKK 0.4bn as Operating cap
Slide 14: Moving to Green
Moving to Green 14
Slide 15: Progress on green and social targets
Progress on green and social targets • Ferry CO2 emission intensity reduced 1% for own fleet and 2% across route network •• Ferry Green CO2 RoRoemission intensity corridor project – EUreduced funding 5% across route application notnetwork approvedin 2023 • Every Minute E-trucks: 117 ofCounts schedul
Slide 16: Capital distribution, outlook & priorities
Capital distribution, outlook & priorities 16
Slide 17: Total capital distribution of DKK 600m on track
Total capital distribution of DKK 600m on track • Capital distribution total of Distribution to shareholders, DKK m 2022 2023 2024 DKK 600m equal to DKK 10.67 per Dividend per share, DKK 8.00 5.00 3.00 share (ex. own shares) Dividend, ex. treasury shares 462 286 168 Buyback of shares 0 300 431 • Div
Slide 18: Outlook 2024 – more challenging H2 than previously expected
Outlook 2024 – more challenging H2 than previously expected • European growth rebound no longer expected – slowdown expected to continue in Q4 • Freight ferry competition increased by entry of new competitor on Istanbul-Trieste freight ferry route • Road transport margin pressure increased in FTL-ma
Slide 19: EBIT range and cash flow outlook lowered
EBIT range and cash flow outlook lowered Previous Outlook 2024 2023 • Revenue growth outlook of DKK m outlook 2024 8-10% lowered from 8-11% Revenue growth 8-10% 8-11% 27,304 due to termination Ekol Logistics acquisition EBIT 1,500-1,700 1,700-2,100 2,326 Per division: • EBIT outlook range lowered to
Slide 20: Key priorities rest-of-year
Key priorities rest-of-year • Organic growth focus - protect key ferry market positions and continue to add enterprise accounts • Turn Logistics’ earnings trend around – seven targeted turnaround projects • Cost focus – reverse cost increase trend • Green transition – continue to deliver on short- a
Slide 21: 21
21