Slide 1: Solid result achieved for 2023
Solid result achieved for 2023 Q4 investor call, 9 February 2024
Slide 2: Q4 & FY investor call agenda
Q4 & FY investor call agenda •Strategy •Q4 overview •Full-year overview •Moving to Green •Capital distribution, outlook & priorities 2
Slide 3: Updated strategy
Updated strategy Network expansion Unlock network value Green transition 2018-2023 2024-2026 2024-2030 • Continue to deliver on • 6 green ferries in acquisitions operation by end 2030 • Accelerate organic • 75% intensity reduction growth for land activities by end 2030 • Adjusted Free Cash • Adjuste
Slide 4: Financial ambitions
Financial ambitions 2024-2026 • Increase ROIC to around 10% • Capex of DKK 1.5-2.0bn annually • Annual adjusted free cash flow of around DKK 1.5bn • NIBD/EBITDA of around 2.5x by 2026 4
Slide 5: Solid 2023 result achieved in year with multiple headwinds
Solid 2023 result achieved in year with multiple headwinds Solid performance Market headwinds Network expanded Cash flow focus despite slowdown Channel overcapacity McBurney and Lucey Finance cost more than Win23 achieved performing well doubled by higher interest Baltic Sea overcapacity rates Freig
Slide 6: Q4 2023 – challenging quarter for freight markets
Q4 2023 – challenging quarter Q4 EBITDA for freight markets DKK m 2023 1,030 2022 1,088 • Group revenue up 9% adjusted for bunker surcharges 2021 915 • EBITDA decreased 5% to DKK 1.03bn 0 200 400 600 800 1,000 • Freight Ferry EBITDA reduced by mainly lower oil price spreads Q4 2023 EBITDA vs LY DKK
Slide 7: Q4 2023 income statement
Q4 2023 income statement • Other income/costs include gain of DFDS Group, DKK m Q4 22 Q4 23 Δ Δ DKK 95m from sale and leaseback of Revenue 6,542 6,832 290 4% three ferries EBITDA 1,088 1,030 -58 -5% • Depreciation up 19% to DKK 719m of Margin 16.6% 15.1% -1.5% which half from acquisitions and sale O
Slide 8: Full-year 2023
Full-year 2023 8
Slide 9: Revenue growth driven by passenger & acquisitions
Revenue growth driven by 2023 revenue vs LY passenger & acquisitions DKK m 27,500 20 27,000 • Group revenue up 2% to DKK 27.3bn • Freight ferry revenue up 3% ex. BAF driven by higher Mediterranean revenue 26,500 -872 1,603 534 • Passenger revenue up 16% as all three 27,304 -853 business units with p
Slide 10: Solid result despite headwinds
Solid result despite headwinds DKK m EBITDA 2023 5,034 2022 4,974 • Full-year EBITDA up 1% to DKK 5.0bn 2021 3,445 • Freight ferry lowered by Channel and 0 1,000 2,000 3,000 4,000 5,000 Baltic Sea headwinds plus oil price spread normalisation 2023 EBITDA vs LY DKK m 5,100 -70 • Passenger raised by c
Slide 11: 2023 income statement – finance cost lowered bottomline
2023 income statement – finance cost lowered bottomline • Gain of DKK 95m from sale and lease- DFDS Group, DKK m 2022 2023 Δ Δ back of three ferries included in Other Revenue 26,873 27,304 431 2% income/costs EBITDA 4,974 5,034 60 1% • Depreciation up 10% to DKK 2.6bn due to Margin 18.5% 18.4% -0.1%
Slide 12: Ferry Division 2023 – freight held back by headwinds
Ferry Division 2023 – freight DKK m 2022 2023 Δ Δ held back by headwinds Revenue 16,831 16,493 -338 -2% Freight ferry 13,555 12,683 -872 -6% Passenger 3,276 3,810 534 16% EBITDA 3,984 3,907 -77 -2% • Revenue up 6% adjusted for BAF Margin 23.7% 23.7% 0.0% surcharges driven by passenger recovery Freig
Slide 13: Logistics Division 2023 – network expanded, market down
Logistics Division 2023 – network expanded, market down DKK m 2022 2023 Δ Δ Revenue 11,423 12,096 673 6% • Revenue down 8% adjusted for Freight ferry 6,158 6,231 72 1% acquisitions Passenger 5,240 5,831 591 11% • Road transport volumes decreased, EBITDA 1,066 1,273 207 19% Margin 9.3% 10.5% 1.2% par
Slide 14: Returns, cash flow & capital
Returns, cash flow & capital DKK bn 2022 2023 Δ Δ Returns Invested capital, end 27.6 29.0 1.4 5% ROIC BAI* 11.7% 10.4% -1.3% n.a. ROIC 8.7% 7.6% -1.1% n.a. • ROIC BAI decreased to 10.4% and ROIC to 7.6% Cash flows Operating cash flow 4.5 3.8 -0.7 -15% • Adjusted free cash flow of DKK 2.8bn Capex Ope
Slide 15: Moving to Green
Moving to Green 15
Slide 16: Decarbonisation progress for Ferry & Logistics
Decarbonisation progress Decarbonisation for Ferryfor both Ferry and Logistics & Logistics progressing • Ferry CO2 emission intensity reduced 5% across route network in 2023 • Every Minute Counts schedule optimisation program delivered more than expected • E-trucks: 90 of 125 ordered trucks deployed
Slide 17: Capital distribution, outlook & priorities
Capital distribution, outlook & priorities 17
Slide 18: Total capital distribution of DKK 600m proposed
Total capital distribution of DKK 600m proposed • Total capital distribution of Distribution to shareholders, DKK m 2022 2023 2024* DKK 600m equal to DKK 10.67 Dividend per share, DKK 8.00 5.00 3.00 per share (ex. own shares) Dividend, ex. treasury shares 462 286 169 Buyback of shares 0 300 431 Tota
Slide 19: Outlook 2024 reflects expected flat overall market environment
Outlook 2024 reflects expected flat overall market environment • Financial and geopolitical uncertainty remains elevated • Only slight rebound in European growth expected with H2 above H1 • Freight market overall expected to be flattish • Turkish growth expected to increase following 2023 disruption
Slide 20: Outlook 2024 reflects expected flat overall market environment
Outlook 2024 reflects expected flat overall market environment • Revenue expected to grow 5-8% driven DKK m Outlook 2024 2023 by mix of organic growth, addition of Revenue growth 5-8% 27,304 Strait of Gibraltar routes, and ETS pass- through surcharges EBIT 2,000-2,400 2,326 Per division: • Earnings
Slide 21: Key priorities for 2024
Key priorities for 2024 • Strategy execution – unlocking value • Delivering reliable and efficient services to our customers • Capacity management - continuous focus on alignment to demand • Organic growth focus • Integration of Strait of Gibraltar routes • Focus on improvement in challenged areas 2
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