Slide 1: 2015 Outlook Raised Again
1 2015 OUTLOOK RAISED AGAIN Q2 2015 20 August 2015 Copenhagen
Slide 2: Contents
CONTENTS • Overview • Q2 2015 • Outlook 2015 • MGO transition • Channel • Semi-annual dividends and stock split • 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
Slide 3: Q2 Earnings Above Expectations
Q2 EARNINGS ABOVE EXPECTATIONS • Organic revenue growth of 6% in Q2 • Operating profit (EBITDA) increased by 37% to DKK 551m • Shipping Division’s earnings increased by higher volumes of freight and passengers, improved unit revenues and operational efficiency gains • Logistics Division’s earnings i
Slide 4: Q2 2015 – EBITDA up by 37% to DKK 551m
Q2 2015 – EBITDA UP DKK m EBITDA before special items, Q2 2015 Margin: 16.1% BY 37% TO DKK 551M 570 520 470 Margin: 12.2% • Strong impact from operating 420 370 leverage in Shipping Division 320 517 Non-allocated 270 following growth in revenue and 220 373 Shipping Division Logistics Division capaci
Slide 5: Q2 2015 in Numbers
Q2 2015 IN NUMBERS 1 Change Change DKK m Q2 15 Q2 14 vs LY % • Group organic revenue growth of REVENUE 3.432 3.306 126 4% 6%, adjusted for route closures and EBITDA BEFORE SI 551 403 149 37% acquisitions margin, % 16,1 12,2 3,9 n.a. P/L associates -5 24 -29 n.a. Gain/loss asset sales 0 2 -2 n.a. • S
Slide 6: EBITDA Outlook 2015 Raised to DKK 1.8-1.9bn
EBITDA OUTLOOK 2015 RAISED TO DKK 1.8-1.9BN • Q2 EBITDA above expectations • Volume growth of freight and passengers set to continue in most areas NEW OUTLOOK 2015 • Capacity utilisation in shipping increasing in • Revenue up by around 3%, general - no major new capacity foreseen and up by around 5%
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 more certainty • Procurement • Volume growth, • Chan
Slide 8: Bunker Q2 2015
BUNKER Q2 2015 Oil prices and spread, Sep 2014 - Aug 2015 900 800 • Price spread between MGO and HFO has dropped to 700 around USD 195 (EUR 175) 600 USD and EUR • Benefits from scrubbers and 500 savings on passenger routes 400 • Lower bunker costs passed on to freight customers 300 through bunker ad
Slide 9: Channel: Situation Progressing
CHANNEL: SITUATION PROGRESSING • MyFerryLink stopped sailings on 29 June • 7 ferries operated between Dover and Calais end Q2, compared to 10 at beginning of year • Longterm bareboat charter agreements entered into for ferries Rodin and Berlioz – Eurotunnel has put option with expiration mid-2017 DK
Slide 10: Semi-annual Dividends and Stock Split
SEMI-ANNUAL DIVIDENDS AND STOCK SPLIT Dividend paid per share • Proposals from Board of Directors*: DKK 30 • Introduction of semi-annual dividends 25 • Interim dividend of DKK 9 already this year 20 9 • Stock split 1:5 15 • Cancellation of 350,000 shares as part of share 10 18 14 14 buyback programm
Slide 11: Strategy, Goals and Priorities
STRATEGY, GOALS AND PRIORITIES DFDS’ strategy drivers: Priorities 2015 - UNCHANGED • 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
Slide 12: ROIC Goal of 10% Achieved in Q2 2015
ROIC GOAL OF 10% ACHIEVED IN Q2 2015 DFDS Group: Return on invested capital (LTM) 11 10 10,3 9 9,0 8 7,9 8,0 7 % 7,1 6 5,8 5,8 5 4,7 4 4,5 4,4 4,5 3 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 12 12
Slide 13: Q2 2015 Q&A
Q2 2015 Q&A 20 August 2015
Slide 14: Appendix - EBIT per BU
APPENDIX - EBIT PER BU DFDS Group EBIT development Q2 2015 • North Sea: 10.1%* higher freight volumes. Growth on all DKK m (adjusted for route closures and one-off income from termination of port customer contract in 2014) routes. Positive impact on port terminal earnings 360 • Baltic Sea: 2.4%* hig