Slide 1: Q1 on track
Q1 ON TRACK DFDS GROUP Q1 2017 11 May 2017
Slide 2: Contents
Contents • Overview • Q1 numbers • Channel market • Capital distribution • Outlook 2017 • Strategic priorities 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.
Slide 3: European growth drives Q1 ahead of LY despite late Easter
European growth drives Q1 ahead of LY despite late Easter • Reported EBITDA up by 2% to DKK 414m Q1 EBITDA before special items DKK m 2017 414 • Q1 EBITDA up by 6% adjusted for net impact of Easter timing difference 2016 405 between Q1 and Q2 2015 228 • North Sea results fuelled by 10% higher 2014 9
Slide 4: North Sea and late Easter key EBIT drivers in Q1
North Sea and late Easter key EBIT drivers in Q1 • Passenger +1m: Positive variance from lower depre- ciations and fewer dockings offset negative Easter- Q1 2017 DFDS Group EBIT development vs LY DKK m impact 210 • North Sea +23m: High volumes, including positive Easter-impact, and lower UK costs of
Slide 5: Q1 2017 in numbers
Q1 2017 in numbers Change Change • 3% revenue growth, adjusted*. DKK m Q1 17 Q1 16 vs LY % Reported revenue up by 4% REVENUE 3,220 3,088 132 4% EBITDA BEFORE SI 414 405 9 2% • EBITDA increased to DKK 414m - margin, % 12.9 13.1 -0.2 n.a. Easter timing impact of DKK -15m P/L associates 6 -1 7 n.a. Gai
Slide 6: Impact on Q1 from GBP-depreciation and oil price
Impact on Q1 from GBP-depreciation and oil price GBP/DKK exchange rate 2016-17 • GBP/DKK was 10.8% lower in Q1 2017 10.5 vs LY (average rate for quarter) Brexit vote 10.0 • Negative revenue currency impact of 9.5 around DKK 73m in Q1 2017 vs 2016 from mainly the depreciation of GBP 9.0 8.5 • Positiv
Slide 7: Total ferry sailings on Channel up 3% in Q1 vs LY
Total ferry sailings on Channel up 3% in Q1 vs LY Channel sailings 2016-2017 1,800 3,300 • In Q1 2017, the total number of sailings was 3% above 2016 1,600 3,100 • DFDS increased sailings by 7% while 1,400 2,900 P&O decreased sailings by 1% 1,200 2,700 • DFDS and P&O had an equal number 1,000 2,500
Slide 8: Continued freight growth, pax reduced by Easter in Q1
Continued freight growth, pax reduced by Easter in Q1 Channel freight volume growth YOY, 2016-2017 • Freight market volumes were up by 3.8% 12% in Q1 2017 10% 8% • The YOY growth per rolling full-year was 6% after March at 5.8% 4% 2% 0% • Car market volumes were down by 9.8% -2% in Q1 2017 -4% Jan F
Slide 9: DFDS lost freight and car market share in Q1
DFDS lost freight and car market share in Q1 Channel freight market shares, 2016-2017 • Some transfer of freight volumes from 45% Dunkirk after shutdown of ‘jungle’ in Calais. As P&O operate six ferries on Dover-Calais vs 40% DFDS’ three ferries, DFDS’ freight market share was reduced 35% 30% • Dunk
Slide 10: Increased distribution of capital to shareholders
Increased distribution of capital to shareholders • DKK 826m distributed through share Capital distribution overview buybacks and dividend in Q1 DKK m 2015 2016 2017 Actual Actual Current plan • The expected total distribution to Dividend per share, DKK 5.40 6.00 8.00 shareholders is currently at DK
Slide 11: 2017: Q1 update on major performance drivers for DFDS
2017: Q1 update on major performance drivers for DFDS Certain/Likely Expected Uncertain Macro drivers • Capacity expansion • Some freight shipping • Passenger volume • Impact of Brexit on selected routes volume growth – growth – slightly process on UK slightly ahead of weaker than expected economy a
Slide 12: EBITDA outlook for 2017 of DKK 2.6-2.8bn confirmed
EBITDA outlook for 2017 of DKK 2.6-2.8bn confirmed • Continued positive outlook for Europe in 2017 OUTLOOK 2017 • Outcome of French presidential • Revenue growth of around 4%, excluding revenue from bunker election expected to add stability surcharges and support continued growth in Europe • EBITDA
Slide 13: Continuous improvement projects
Continuous improvement projects • Toplight – simplified rate structure and preparing for digital customer solutions and efficiency gains in freight shipping • Carpe Momentum – improve on board sales and spend per passenger on Channel routes • Haulage Drive – improve efficiency of subcontracted haula
Slide 14: Strategic priorities 2017
Strategic priorities 2017 • Customer focus – growing the topline • Continuous improvement: achieve benefits from programmes • Fleet renewal: deployment of two freight ship (ro-ro) new buildings and further decisions on fleet strategy • Digital: significant spending boost in digital and IT capabiliti
Slide 15: Q&A
Q&A . 15