Dfds A/s · OMXCOP:DFDS
Dfds A/s — Debt Investor Presentation (March 2025)
32 slides from Dfds A/s's debt investor presentation, March 2025
Slide 1: DFDS 2025
DFDS 2025 March 2025°
Slide 2: Agenda
Agenda • Introduction • Business update • 2024 results • Capital structure • 2025 Focus area • Outlook and priorities 2
Slide 3: Purpose of today
Purpose of today Today’s presenter Karen Dyrskjøt Boesen EVP & CFO • Provide a business update and DFDS since: July 2024 background on 2024 financial performance • Elaborate on our capital structure and reaffirm our commitment to maintaining Responsibilities include Corporate Finance, Group Accounts
Slide 4: Key credit highlights
Key credit highlights | 2024 revenue DKK 29.8bn & EBITDA DKK 4.4bn LEADING FERRY OPERATOR IN AND AROUND EUROPE RESILIENT BUSINESS OPERATIONS DFDS provides vital transport infrastructure Diversified geographic footprint and customer connecting countries and regions separated by water base from ferry,
Slide 5: Agenda
Agenda • Introduction • Business update • 2024 results • Capital structure • 2025 Focus area • Outlook and priorities 5
Slide 6: Strategy Moving Together
Moving Together Strategy Towards | Moving 2030 – Moving to green Together Towards 2030 Unlock network value, 2024-2026 • Protect & Grow Profits • Standardise to simplify • Digitise to transform • Moving to green • Be a great place to work Green transition, 2024-2030 • 45% reduction in ferry emission
Slide 7: 2025 focus: Transition to recovery after financially challenging 2024
2025 focus | Transition to recovery after financially challenging 2024 Network strengthened and Financially challenging 2025 transition to recovery expanded year Financial ambitions no Organic growth achieved Results fell short of longer applicable expectations Strait of Gibraltar delivered 2025 a t
Slide 8: Agenda
Agenda • Introduction • Business update • 2024 results • Capital structure • 2025 Focus area • Outlook and priorities 8
Slide 9: 2024: 2% organic revenue growth
2024 | 2% organic revenue Change in revenue, full-year 2024 vs 2023 growth DKK m 30,000 -169 • Group organic revenue* up 1.9% 29,500 • Freight ferry organic revenue on level 29,000 2,013 with 2023 28,500 • Passenger organic revenue up 9.6% driven by Channel from higher 28,000 29,753 volumes and spen
Slide 10: 2024: EBIT lower in both divisions
2024 | EBIT lower in both DKK m DFDS Group - full-year EBIT divisions 2024 1,506 2023 2,326 • FY EBIT decreased 35% to DKK 1.5bn 2022 2,468 • Ferry EBIT down DKK 574m or 27% to 2021 1348 DKK 1.5bn driven by lower Mediterranean result, oil spread decrease, and one-off gain 2020 741 in 2023 0 500 1,00
Slide 11: Full-year 2024 income statement
Full-year 2024 income statement DFDS Group, DKK m 2023 2024 Δ Δ Revenue 27,304 29,753 2,449 9% • Revenue up 9% or DKK 2,449 following EBITDA 4,890 4,440 -449 -9% growth in both divisions Margin 17.9% 14.9% -3.0% • EBITDA down 9% or DKK 449m following Other income/costs, net 88 35 -53 n.a. lower resu
Slide 12: 2024: Cash flows & capital
2024 | Cash flows & capital DKK bn 2023 2024 Δ Δ • Operating cash flow down 7% vs 2023 to Cash flows DKK 3.4bn driven by lower EBITDA and Operating cash flow 3.7 3.4 -0.3 -7% higher interest cost Capex Operating capex -0.1 -1.5 -1.3 1162% • Operating capex of DKK 1.45bn Ferries* 0.0 0.0 0.0 n.a. • A
Slide 13: Agenda
Agenda • Introduction • Business update • 2024 results • Capital structure • 2025 Focus area • Outlook and priorities 13
Slide 14: Credit rating outlook revised
Credit rating outlook revised | DFDS committed to deleveraging and maintaining investment grade credit rating Scope revise outlook to negative, but affirms BBB- credit rating BBB- Negative • Having access to attractive funding sources as an investment grade company is a key part of DFDS’ funding str
Slide 15: Financial leverage: Capital distribution suspended
Financial leverage | Capital Financial Leverage, NIBD/EBITDA distribution suspended 5 Peak COVID-19 4.5 4.2 3.9 4 • Deleveraging from current level a priority to align with 3.7 target capital structure range of 2-3x 3.5 3.3 2.8 2.9 3 • As during Covid-19, capital distribution suspended in Target 2.5
Slide 16: Debt composition and maturity profile
Debt composition and maturity profile | DFDS has a diversified funding structure and limited short term debt maturities Debt composition (Q4 2024) Debt maturity profile (Q4 2024) DKKm DKKbn Bank loans (incl. RCF drawdowns) Bonds Bank loans (incl. RCF drawdowns) Bonds Leasing Ship mortgage Leasing Sh
Slide 17: Ship encumbrance
Ship encumbrance | Significant unencumbered ship value for benefit of unsecured creditors Comments Unencumbered vessel value (Q4 2024) DKKbn • With a total ship book value of around DKK 13.8bn and 13.8 only DKK 3.7bn being pledged, there is significant unencumbered/excess ship value left for unsecur
Slide 18: Agenda
Agenda • Introduction • Business update • 2024 results • Capital structure • 2025 Focus area • Outlook and priorities 18
Slide 19: 2025 focus: Underlying network strength intact
2025 focus | Underlying network strength intact • Majority of network expected to uphold performance or improve • North Sea/Channel/Baltic sea • Strait of Gibraltar ex. Tarifa route – continued growth expected • Logistics – UK & Ireland robust, parts of Nordic/Continent challenged • Jersey – new 20-
Slide 20: 2025 focus: 3 focus areas to resolve in 2025
2025 focus | 3 focus areas to resolve in 2025 • Adapting Mediterranean • Türkiye & Europe South turnaround • Logistics Boost projects 20
Slide 21: 2025 focus: Adapting Mediterranean to new competitive environment
2025 focus | Adapting Mediterranean to new competitive environment • Overcapacity created on Istanbul- Trieste corridor by competitor entry mid-September 2024 • Successful initial defense of market share • Market expected to rebalance during 2025 enabled by capacity adjustments 21
Slide 22: 2025 focus: Turkiye & Europe South logistics turnaround on track
2025 focus | Turkiye & Europe South logistics turnaround on track • Progress in line with breakeven target for year-end 2025 • Organisational restructuring impacts 125 Istanbul office employees • First results from cross-selling DFDS’ European network • Rightsizing of equipment fleet ongoing – subco
Slide 23: 2025 focus: Deliver on Logistics Boost projects
2025 focus | Deliver on Logistics Boost projects • Logistics performance issues Logistics Boost turnaround projects initiated in 2024 are largely limited to Nordic and Continent business units where Cold chain Automotive Market Geopolitical 8 boost projects have been slowdown initiated in 2024 Denma
Slide 24: Agenda
Agenda • Introduction • Business update • 2024 results • Capital structure • 2025 Focus area • Outlook and priorities 24
Slide 25: Outlook 2025 – modest tailwind assumed
Outlook 2025 – modest tailwind assumed • European growth assumed to remain muted in 2025 due to continued macro uncertainty • Continued growth in Mediterranean and North Africa. DFDS freight ferry Mediterranean volumes impacted by competition • Road transport markets assumed to remain highly competi
Slide 26: EBIT outlook 2025 impacted by focus areas
EBIT outlook 2025 impacted by focus areas DKK m Outlook 2025 2024 • Revenue growth outlook of around 5% Revenue growth Around 5% 29,753 driven by organic growth and net positive impact from EBIT Around 1,000 1,506 acquisitions/divestments Per division: • EBIT outlook of around DKK 1.0bn Ferry Divisi
Slide 27: Key priorities 2025
Key priorities 2025 • Protect & grow underlying network strength • Organic growth focus • Resolve three specific focus areas • Cost focus – reverse cost increase trend • Cash flow focus supported by non- core asset review and working capital intiatives • Financial leverage – focus on reducing NIBD/E
Slide 28: 28
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Slide 29: Appendix
Appendix 29
Slide 30: Income Statement
Income Statement 2020 2021 2022 2023 2024 DKKm Full-year Full-year Full-year Full-year Full-year Revenue 13,971 18,279 26,873 27,304 29,753 Costs Ferry and other ship operation and maintenance -2,569 -3,880 -6,426 -5,597 -6,117 Freight handling -2,383 -2,598 -3,090 -3,263 -3,814 Transport solutions
Slide 31: Balance Sheet: Assets
Balance Sheet | Assets 2020 2021 2022 2023 2024 DKKm 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec Goodwill 3,434 4,280 4,407 4,952 7,497 Other non-current intangible assets 1,174 1,659 1,702 1,821 1,944 Software 239 298 324 346 382 Development projects in progress 55 14 12 17 13 Non-current intangible assets
Slide 32: Balance Sheet: Equity & Liabilities
Balance Sheet | Equity & Liabilities 2020 2021 2022 2023 2024 DKKm 31-Dec 31-Dec 31-Dec 31-Dec 31-Dec Share capital 1,173 1,173 1,173 1,173 1,159 Reserves -273 -396 -284 -451 -490 Retained earnings 9,611 10,669 12,133 13,119 13,145 Equity attributable to equity holders of DFDS A/S 10,511 11,446 13,0