DFDS A/S · OMXCOP:DFDS
DFDS A/S — H1 2002 Earnings Presentation
23 slides from DFDS A/S's earnings presentation, Aug 23, 2002
Slide 1: Contents
Contents • Performance development 2nd quarter and 1st half year 2002 • Strategy • DFDS ro-pax • Ro-ro – capacity expansion in the North Sea • Focus on the Baltic Sea • OPTIMIZE – Group structure • Profit forecast 2002 Meeting with share analysts 23/08/02 Page 2
Slide 2: Profit and loss account Q2
Profit and loss account Q2 DKK millions Q2 2002 Q2 2001 Net turnover 1.276 1.046 Profit on sale of ships, buildings and terminals 14 124 Profit before depreciation (EBITDA) 261 288 Depreciation -123 -96 Operating profit (EBITA) 138 192 Goodwill amortization and depreciation -1 0 Profit before financ
Slide 3: EBITA by quarter
EBITA by quarter EBITA & EBITA margins by quarter, Q2 2002 (excl. profits on sale of ships, buildings and terminals) 250 20,00 200 15,00 150 10,00 100 DKK millions 5,00 50 % 0,00 0 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 -5,00 -50 -100 -10,00 -150 -15,00 EBITA EBITA-margin, % Meeting with share analysts 23/08
Slide 4: Profit and loss account Q1-Q2
Profit and loss account Q1-Q2 DKK millions Q1-Q2 2002 Q1-Q2 2001 Net turnover 2.326 1.911 Profit on sale of ships, buildings and terminals 14 124 Profit before depreciation (EBITDA) 279 276 Depreciation -247 -191 Operating profit (EBITA) 32 85 Goodwill amortization and depreciation -3 0 Profit befor
Slide 5: Turnover development Q1-Q2
Turnover development Q1-Q2 2.400 DFDS Group, 2.350 Q1-Q2, 2002 DKK 2,326 million 2.300 Elimination, etc. Q1-Q2, 2002 DKK 8 million 2.250 2.200 23% 2.150 DFDS Seaways, Q1-Q2, 2002 Growth in turnover 2.100 DKK 159 million 22% 2.050 DFDS Tor Line, Q1-Q2, 2002 Growth in turnover 2.000 DKK 248 million 19
Slide 6: Development in EBITA Q1-Q2
Development in EBITA Q1-Q2 (excl. profit on sale of ships, buildings and terminals) 20 DFDS Group Management Q1-Q2, 2002 EBITA change: 10 DKK 0 million DFDS Group, Q1-Q2, 2001 DKK -39 mio. 0 DFDS Group Q1-Q2, 2002 +51 DKK 18 million -10 -20 DFDS Seaways Q1-Q2, 2002 EBITA improvement: -30 DKK 6 mio.
Slide 7: Cash flow Q1-Q2
Cash flow Q1-Q2 DKK millions Q1-Q2 2002 Q1-Q2 2001 Profit before depreciation (EBITDA) 279 276 Net w orking capital 166 325 Taxes paid -21 -1 Cash flow from operations before financing 424 600 Financing, net -79 -2 Cash flow from operations 345 598 Cash flow from investments -173 -1.674 Cash flow af
Slide 8: Accounting policies
Accounting policies • Changes in accounting policies in accordance with the new Financial Statements Act: – development costs – derivative financial instruments – proposed dividend • Changes in accounting estimates related to ships in accordance with Danish accounting standard no. 10: – ships divide
Slide 9: Accounting policies
Accounting policies Profit impact of changes in accounting policies and changes in accounting estimates of ships Q1-Q2 2002 Full year 2002 DFDS DFDS DFDS DFDS DFDS DFDS DKK millions Seaways Tor Line Group Seaways Tor Line Group Capitalization of development costs 1,4 0,0 1,4 3,0 0,0 3,0 Depreciation
Slide 10: DFDS Seaways
DFDS Seaways • Continuing growth in turnover on Amsterdam-Newcastle route DKK millions Q1-Q2 2002 Q1-Q2 2001 • Satisfactory growth in turnover and earnings on Copenhagen- Helsingborg-Oslo route Net turnover 1.018 859 Operating profit (EBITA) -50 -70 Operating profit margin, % -4,9 -8,1 • Passenger t
Slide 11: DFDS Seaways – EBITA by quarter
DFDS Seaways – EBITA by quarter EBITA & EBITA margins by quarter, Q2 2002 (excl. profit on sale of ships, buildings and terminals) 225 30 175 20 125 10 75 DKK millions 0 25 % -10 -25 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 -20 -75 -125 -30 -175 -40 EBITA EBITA-margin, % Meeting with share analysts 23/08/02 Pa
Slide 12: DFDS Tor Line
DFDS Tor Line • Profit performance in the North Sea as expected • DFDS Lys-Line Rederi in line with DKK millions Q1-Q2 2002 Q1-Q2 2001 expectations Net turnover 1.324 1.076 • LISCO’s profit performance slightly Operating profit (EBITA) 101 50 better than expected for the second Operating profit marg
Slide 13: DFDS Tor Line – EBITA by quarter
DFDS Tor Line – EBITA by quarter EBITA & EBITA margins by quarter, Q2 2002 (excl. profit on sale of ships, buildings and terminals) 70 10 9 60 8 50 7 DKK m illions 6 40 5 % 30 4 20 3 2 10 1 0 0 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 EBITA EBITA-margin, % Meeting with share analysts 23/08/02 Page 14
Slide 14: DFDS' strategy
DFDS’ strategy DFDS Tor Line Ro-ro fleet renewal: New customer Terminals: Route development: • Average age: 10 years concepts: • Maasvlakte • Focus on Baltic Sea • 50% ownership share • Auto Logistics • Value-added services • Increased capacity • Sell older ships • Shipping Logistics in North Sea •
Slide 15: DFDS ro-pax – Esbjerg-Harwich
DFDS ro-pax – Esbjerg-Harwich • DANA GLORIA to replace DANA ANGLIA on 3 October 2002 • Two ro-pax ships to replace DANA GLORIA in April 2003 • Sailing schedule adjusted • Ro-pax concept: – pax capacity: 600 passengers, approx. 200 cabins – freight capacity: 2,200 lane metres – crossing time: 17 hour
Slide 16: Ro-ro – capacity increase in the North Sea
Ro-ro – capacity increase in the North Sea • Expected delivery dates for five newbuildings from Flensburg shipyard: – 721: September 2003 – 722: January 2004 – 723: May 2004 – 724: August 2004 – 725: January 2005 • 721-3 is planned to enter into service on AngloBridge, approx. 40% capacity increase
Slide 17: Ro-ro – higher productivity in the North Sea
Ro-ro – higher productivity in the North Sea • faster service speed: 22 knots • higher capacity: 4,000 lane metres per ship • marginal increase in cost of capital • lower operating costs, e.g., oil consumption and maintenance • general reduction in level of costs Meeting with share analysts 23/08/02
Slide 18: Focus on the Baltic Sea
Focus on the Baltic Sea • DFDS Seaways: Copenhagen-Trelleborg-Gdansk to open at the beginning of October with the DANA ANGLIA • DFDS Tor Line: route opened between Kiel and Riga in May 2002, offering two weekly departures in each direction • DFDS Tor Line: activity expansion being considered in the
Slide 19: Expected fleet renewal 2002
Expected fleet renewal 2002 No. of ships Owned Ownership Targeted Average Targeted ships share, % ownership age of average age share, % owned ships DFDS Seaways 6 6 100 75 19,8 15 DFDS Tor Line 19 15 79 50 14,7 10 LISCO Baltic Service 13 13 100 50 12,9 10 DFDS Lys-Line Rederi 18 8 44 50 10,4 10 Tota
Slide 20: OPTIMIZE – Group structure
OPTIMIZE – Group structure • Restructuring of headquarter functions: – HR functions integrated – financial functions integrated – decision made to integrate IT functions – implementation planned for 2nd half of 2002 – others • New IT director appointed • Focus on reducing corporate costs Meeting wit
Slide 21: Tonnage tax
Tonnage tax • Danish tonnage tax regime adopted on 18 April 2002 • Shipping companies have to decide between the new tonnage tax regime and the current tax scheme • Shipping can choose the tonnage tax regime with effect from 2001 • The decision is binding for 10 years • DFDS is favourable to the new
Slide 22: Profit forecast 2002
Profit forecast 2002 • Profit impact of the fire on board the PRINCESS OF SCANDINAVIA is expected to be slightly less negative than previously announced • The sale of the ADMIRAL OF SCANDINAVIA is expected to result in a loss in the region of DKK 12 million • The purchase of two ro-pax ships is expe
Slide 23: Profit forecast 2002
Profit forecast 2002 • DFDS Seaways continues to expect a significant improvement in operating profit (EBITA) for 2002 • DFDS Tor Line continues to expect a somewhat better operating profit (EBITA), adjusted for the profit on the sale of ships, for 2002 • The DFDS Group continues to expect a profit