Slide 1: Growth continues but Brexit lowers pace
GROWTH CONTINUES BUT BREXIT LOWERS PACE DFDS GROUP Q2 2019 13 August 2019
Slide 2: Contents
Contents • Overview • 5 performance drivers • Q2 numbers • Capital structure • WIN23 • Outlook and priorities 2019 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. A
Slide 3: Growth lowered by exceptional Brexit uncertainty
Growth lowered by exceptional Brexit uncertainty • Q2 revenue up 9% to DKK 4.2bn; DKK bn 9.0 Revenue growth rate +10% EBITDA up 4% to DKK 989m 8.0 7.0 6.0 • H1 revenue up 10% to DKK 8.1bn; 5.0 4.0 +11% +9% EBITDA up 8% to DKK 1.7bn 3.0 2.0 1.0 • Negative impact in Q2 from 0.0 Q1 Q2 H1 reversal of UK
Slide 4: 5 key DFDS performance drivers 2019 face some headwind
5 key DFDS performance drivers 2019 face some headwind 1. Growth benefits from New route: Gothenburg-Zeebrugge Mediterranean expansion: Full- Turkish recession and fast year UNRR impact and expanded capacity ramp-up creates cooperation with Ekol Logistics earnings headwind 2. Well prepared for Brexi
Slide 5: EBITDA-margin lowered by stockpiling reversal in Q2
EBITDA-margin lowered by stockpiling reversal in Q2 • Revenue growth of 9% driven by Change Change DKK m Q2 19 Q2 18 vs LY % Mediterranean REVENUE 4,241 3,894 347 9% EBITDA BEFORE SI 989 948 41 4% • Margin reduced by lower freight margin, % 23.3 24.3 -1.0 n.a. P/L associates 6 1 5 n.a. volumes from
Slide 6: UK trade lowered by reversal in Q2 of Q1 stockpiling
UK trade lowered by reversal in Q2 of Q1 stockpiling EU-UK trade of goods - volume development • Q1 trade boosted by 15% UK stockpiling • Reversal of 10% stockpiling in Q2 5% 0% -5% -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2018 2019 UK (EU) Exports UK (EU) Imports 6
Slide 7: Ferry Division – EBIT up 3% to DKK 518m
Ferry Division – EBIT up 3% to DKK 518m • North Sea +1m: Lower volumes from mainly UK stockpiling reversal. DKK m Q2 2019 EBIT development vs LY Mitigation from DfT agreement 525 515 • Baltic Sea -7m: Lower freight 19 1 earnings partly offset by improved 505 -7 pax performance 495 1 485 • Channel -4
Slide 8: Logistics Division – EBIT down DKK 14m to DKK 47m
Logistics Division – EBIT down DKK 14m to DKK 47m • Nordic -12m: Negative Q2 2019: Logistics Division, impact from reversal of UK DKK m EBIT change vs LY stockpiling. Lower activity 65 due to high volumes for large logistics contract in Q2 2018 60 • Continent -4m: Negative 55 -12 impact from reversa
Slide 9: Mediterranean volumes boosted by Ekol agreement
Mediterranean volumes boosted by Ekol agreement Mediterranean, total volume • Q2* volumes up 12% and H1 LM '000 volumes up 13% 400 • Istanbul-Trieste 380 volume growth in 360 line with 340 expectations for H1 320 300 280 260 240 220 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2017 2019 9 *D
Slide 10: New route Istanbul-Sète from July 2019
New route Istanbul-Sète from July 2019 • Istanbul-Sète opened 5 July 2019 • Two freight ferries deployed 10
Slide 11: Capital structure
Capital structure • NIBD/EBITDA-multiple was NIBD/EBITDA (restated to IFRS 16) 3.2x end of Q2 2019 3.5 3.0 3.2 3.3 3.2 3.0 3.1 2.5 Times 2.0 1.5 1.6 1.0 0.5 0.0 LTM Q1 2018 LTM Q2 2018 LTM Q3 2018 2018 LTM Q1 2019 LTM Q2 2019 11
Slide 12: WIN23 strategy - 4 strategic pillars to drive growth next 5 years
WIN23 strategy - 4 strategic pillars to drive growth next 5 years • New BU structure in • DFDS Direct • Mediterranean • Develop on board place during H2 • DFDS Spot business plan customer (Automotive, Cold • Digitise core sytems • Ferry newbuildings experience Chain and Forest • Continuous • Busines
Slide 13: Brexit uncertainty lowers revenue and earnings outlook
Brexit uncertainty lowers revenue and earnings outlook • UK trade slowdown OUTLOOK 2019 continuing beyond Q2 • Revenue growth of 6-8% (previously 10-12%) • Brexit outcome currently unpredictable • EBITDA range of DKK 3.5-3.8bn (previously DKK 3.8-4.0bn) • New round of UK stockpiling • Ferry Division
Slide 14: Priorities 2019 – adapting to market changes
Priorities 2019 – adapting to market changes • Continue Brexit preparations • Optimise Mediterranean capacity utilization • Develop new routes: Gothenburg- Zeebrugge and Istanbul-Sète • Deliver on our 5 DFDS performance drivers • WIN23 – new strategic and financial ambitions – mobilization of organi
Slide 15: Q&A
Q&A . 15