Slide 1: Acquisitions Fuel Growth
ACQUISITIONS FUEL GROWTH DFDS GROUP Q2 2018 16 August 2018
Slide 2: Contents
Contents • Overview • Q2 numbers • Capital structure • Outlook 2018 • Turkey • Priorities 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: Acquisitions fuel growth and earnings in Q2
Acquistions fuel growth and earnings in Q2 • UNRR consolidated from 7 June Q2 EBITDA before special items with revenue of DKK 141m and DKK m EBITDA of DKK 50m 2018 802 • DFDS Group revenue up 6% and EBITDA up 9% to DKK 802m 2017 739 • EBITDA outlook for full-year 2018 2016 699 unchanged at DKK 3.0-3
Slide 4: A bit more headwind than tailwind in Q2
A bit more headwind than tailwind in Q2 • Bunker price up 47% in Q2 mitigated Oil price development, 2017-18 by 8% lower USD 700 650 • Lag of 1-2 months in recovery of 600 bunker price increase impacted Q2 negatively, also in Logistics 550 500 • Total EBITDA impact of DKK -40m USD 450 • SEK down 6%
Slide 5: Q2 2018 numbers: Impact from UNRR acquisition
Q2 2018 numbers: Impact from UNRR acquisition Change Change • 6% revenue growth driven by UNRR and DKK m Q2 18 Q2 17 vs LY % continued growth in freight volumes. Revenue REVENUE 3,894 3,688 206 6% up 4% on a like-for-like basis EBITDA BEFORE SI 802 739 63 9% margin, % 20.6 20.0 0.6 n.a. • EBITDA up
Slide 6: Mediterranean and Passenger key Q2 EBIT drivers
Mediterranean and Passenger key Q2 EBIT drivers • North Sea +8m: Continued volume growth, offset from lag in bunker cost recovery Q2 2018 DFDS Group EBIT development vs LY DKK m 540 • Channel +1m: Positive route contribution offset by extra ferry maintenance costs and lag in bunker cost recovery 530
Slide 7: Capital structure in line with target leverage
Capital structure in line with target leverage • NIBD/EBITDA at 2.9 end of Q2 and 2.4 on pro NIBD/EBITDA forma basis 3,5 • Share issue with proceeds of DKK 1.0bn 3,0 completed in June 2018 2,9 2,5 • Interest-bearing debt increased to DKK 9.5bn 2,4 Times 2,0 • Board will in February 2019 review capit
Slide 8: EBITDA outlook 2018 unchanged at DKK 3.0-3.2bn
EBITDA outlook 2018 unchanged at DKK 3.0-3.2bn • European real GDP growth above 2% expected in 2018 OUTLOOK 2018 • Some slowdown in UK market but • Revenue growth of around 10% demand for ferry and logistics services is robust • EBITDA range of DKK 3,000-3,200m • Development of digital and IT • Ship
Slide 9: Turkey - inflation and exchange rate development of TRY
Turkey - inflation and exchange rate development of TRY • TRY-depreciation is linked to high TRY/DKK inflation rates in Turkey: 2,55 2016 2017 2018 • 2016: 8% 2,35 • 2017: 11% • 2018 ytd: 16% 2,15 1,95 • Turkey’s real GDP was up 7% in Q1 1,75 • FY GDP forecast at around 4% before -15% TRY dropped in
Slide 10: Turkey – impact of TRY depreciation on finance items
Turkey – impact of TRY depreciation on finance items • Financial performance impacted by ‘one-off’ TRY/DKK – July-August 2018 currency loss on debtors recorded in Finance 1,45 items 1,40 1,35 • Mediterranean’s prices are set in EUR to protect 1,30 revenue development 1,25 • Invoicing in TRY implies,
Slide 11: Turkey – impact of TRY depreciation on trading
Turkey – impact of TRY depreciation on trading • Export volumes increased 17% Jan-Jun 2018 while import volumes were up 3% • Europe-Turkey trading has historically been balanced – current divergence in growth rates is starting to create imbalances • Currency depreciation is impacting import volumes
Slide 12: Priorities 2018
Priorities 2018 • Integration of U.N. Ro-Ro • Realise our next steps in digital strategy • Customer satisfaction – grow the topline • Continue push for efficiency improvements • Improve performance of Passenger business unit • Preparing for deployment beginning 2019 of two freight new buildings (ro-
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