Slide 1: DFDS Raises 2015 Outlook
1 DFDS RAISES 2015 OUTLOOK Q1 2015 21 May 2015 Copenhagen
Slide 2: Contents
CONTENTS • Overview • Q1 2015 • Outlook 2015 • MGO transition • Channel judgment • Capital structure and distribution • Strategy, goals and priorities The statements about the future in this announcement contain an element of risk and uncertainty, both in general and specific terms, and this means t
Slide 3: Outlook raised following strong quarter and growth above expectations
OUTLOOK RAISED FOLLOWING STRONG QUARTER AND GROWTH ABOVE EXPECTATIONS • Operating profit (EBITDA) up by 150% from DKK 91m to DKK 228m • Profit improved by volume growth and efficiency gains • Shipping revenue up by 6% adjusted for route closures in 2014 • Scrubber investments contributed to a smooth
Slide 4: Q1 2015 – EBITDA up by DKK 137m or 150%
EBITDA before special items, Q1 2015 DKK m Q1 2015 – EBITDA UP BY DKK Margin: 7.8% 250 230 137M OR 150% 210 190 170 150 189 130 Margin: 3.2% • Optimisation of route network: positive 110 impact of around DKK 30m from closure of 90 70 68 three routes with Q1 losses in 2014 50 30 36 52 10 • Channel: r
Slide 5: Q1 2015 in numbers
Q1 2015 IN NUMBERS 1 Change DKK m Q1 15 Q1 14 vs LY REVENUE 2,926 2,848 78 • Revenue up by 3%, and up by 4% adjusted EBITDA BEFORE SI 228 91 137 for route closures and acquisitions margin, % 7.8 3.2 4.6 P/L associates -3 7 -10 • Shipping Division’s revenue up by 6%, Gain/loss asset sales 0 0 0 adjus
Slide 6: Outlook 2015 raised to DKK 1.65-1.75bn
OUTLOOK 2015 RAISED TO DKK 1.65-1.75BN • Q1 EBITDA above expectations NEW OUTLOOK 2015 • Raise in outlook supported by growth of varying strength in northern European • Revenue up by around 3%, and markets up by around 5% adjusted for • Demand from Russia was weak in Q1 and route closures and acquis
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 structural competitive demand routes overcapacity in pressure as expected Channel no change uncertain • Procurement • Volume growth, • Changes i
Slide 8: Smooth transition to new emission rules
SMOOTH TRANSITION TO NEW EMISSION RULES • Price spread between MGO and HFO Oil prices and spread, Sep 2014 - May 2015 intact at around USD 225 900 800 • Benefits from scrubbers, savings on passenger routes and positive 700 0,1% LSMGO, volume effects USD 600 • Demand for freight shipping services USD
Slide 9: Channel: Judgment on appeal creates new situation
CHANNEL: JUDGMENT ON APPEAL CREATES NEW SITUATION • Court of Appeal allowed SCOP’s appeal in 2:1 judgment • Judgment runs counter to decisions taken by competition authorities since 2012 • CMA is seeking permission to appeal • Supreme Court appeal process duration of 1-2 years • Decision on permissi
Slide 10: Capital structure and distribution
CAPITAL STRUCTURE AND DISTRIBUTION • The NIBD/EBITDA multiple was 1.7 at the end of Q1 NIBD/EBITDA Target minimum leverage • NIBD was DKK 2.7bn at the end of Q1 2015, 2.0 up from DKK 2.5bn at year-end 2014. Impact 1.8 1.8 1.8 on NIBD/EBITDA neutralized by higher EBITDA 1.6 1.7 1.7 1.7 1.4 Times • La
Slide 11: Strategy, goals and priorities
STRATEGY, GOALS AND PRIORITIES DFDS’ strategy drivers: Priorities 2015 • The DFDS Way: Customer focus and continuous improvement 1. Customer focus • Network strength: Expand to leverage operating model 2. Efficiency and improvement • Integrated shipping and logistics operations: projects Utilisation
Slide 12: Q1 2015 Q&A
Q1 2015 Q&A 21 May 2015