Slide 1: Aiming Higher in 2016 – Q4 2015
AIMING HIGHER IN 2016 Q4 2015 12 February 2016
Slide 2: Contents
Contents • Overview • Q4 and year-end 2015 • Financial leverage • Outlook 2016 • Strategy, goals and priorities • Appendix: EBIT per BU The statements about the future in this announcement contain an element of risk and uncertainty, both in general and specific terms, and this means that actual deve
Slide 3: Aiming higher from record 2015
Aiming higher from record 2015 • In 2015, EBITDA was raised by 42% to DKK 2,041m – the main drivers of the transition to a higher earnings level were: EBITDA before special items DKK bn • Resolution of overcapacity on Channel 2.5 • Improved passenger mix and volumes EBITDA improved by • Successful s
Slide 4: Q4 2015 – EBITDA up by 33% to DKK 418m
Q4 2015 – EBITDA up by 33% to DKK 418m EBITDA before special items, Q4 2015 DKK m Margin: 12.6% • 12% higher freight shipping volumes and 450 11% more passengers 350 Margin: 10.3% • Earnings increased in 4 of 5 Shipping 250 385 business units: Channel and Baltic Sea 284 150 strongest performers 50 5
Slide 5: Q4 2015 in numbers
Q4 2015 in numbers Change Change 1 DKK m Q4 15 Q4 14 vs LY % • Revenue growth of 10% adjusted for REVENUE 3,324 3,059 266 9% closure of routes in 2014 EBITDA BEFORE SI 418 314 104 33% margin, % 12.6 10.3 2.3 n.a. • EBITDA includes a number of one-off P/L associates 0 -5 5 n.a. Gain/loss asset sales
Slide 6: Full-year 2015 in numbers
Full-year 2015 in numbers Change Change DKKm 2015 2014 vs LY % • Reported revenue growth of 5%. 7% REVENUE 13,474 12,779 695 5% growth adjusted for closure of routes and EBITDA BEFORE SI 2,041 1,433 608 42% acquisitions in 2014 margin, % 15.1 11.2 3.9 n.a. P/L associates -12 25 -37 n.a. • Increase i
Slide 7: Higher earnings level raises planned distribution to DKK 950m
Higher earnings level raises planned distribution to DKK 950m • NIBD/EBITDA was 0.9x at year-end 2015 vs long- DKK m 2016 2015 2014 term leverage target of NIBD/EBITDA of 2.0-3.0x Planned* dividend per share, DKK 5.0 5.4 2.8 Planned* dividend 297 326 177 • Board of Directors plan to distribute a tot
Slide 8: EBITDA outlook for 2016 of DKK 2.1-2.3bn
EBITDA outlook for 2016 of DKK 2.1-2.3bn • Economic recovery in Europe expected to continue at moderate pace in 2016 NEW OUTLOOK 2016 • Freight and passenger volumes are consequently expected to continue to grow in 2016, though at a • Revenue up by around 6%, lower pace than in 2015 excluding revenu
Slide 9: 2016 outlook: major performance drivers
2016 outlook: major performance drivers Certain/Likely Expected Uncertain Macro drivers • Capacity expansion: • Freight shipping • Channel competitor • UK economy – Channel, North Sea volume growth of 8- dynamics after slowdown? 10% deployment of • Capacity reduction: upgraded ferries • Brexit refer
Slide 10: Strategy, goals and priorities
Strategy, goals and priorities People: succession planning, talent DFDS’ strategy drivers: programme, transformation office • The DFDS Way: Customer focus and continuous improvement The DFDS Way: further development of operating model • Network strength: Expand to leverage operating model Tonn
Slide 11: Aiming Higher in 2016 – Q&A
AIMING HIGHER IN 2016 Q&A . 11
Slide 12: Appendix: EBIT per BU Q4 2015
Appendix: EBIT per BU Q4 2015 • North Sea: 8.9%* higher freight volumes. DFDS Group EBIT development Q4 2015 Continued high UK-Continent market growth. DKK m 220 • Baltic Sea: 4.4% higher freight volumes. Russian 210 route end of Q3 converted to a slot charter 200 5 -7 7 • Passenger: Copenhagen-Oslo
Slide 13: Appendix: EBIT per BU 2015
Appendix: EBIT per BU 2015 • North Sea: 10%* higher freight volumes driven by UK- DFDS Group EBIT development 2015 Continent market growth and capacity realigned to DKK m support growth 1,250 • Baltic Sea: 4*% higher freight volumes as growth picked 1,200 up in H2. Very low Russian volumes 1,150 39