Dfds A/s · OMXCOP:DFDS
Dfds A/s — H1 2008 Earnings Presentation
17 slides from Dfds A/s's earnings presentation, Aug 26, 2008
Slide 1: Half-Year Report 2008
HALF-YEAR REPORT 2008 26 August 2008
Slide 2: Difficult Market Conditions & High Oil Prices
DIFFICULT MARKET CONDITIONS & HIGH OIL PRICES EBITDA, H1 • Half-year profit impacted by: 700 • Difficult market conditions 600 • High oil prices 500 DKK mill. • Restructurering costs 400 300 200 • H1 Revenue growth of 4% to DKK 4.2 bill. 100 0 2006 2007 2008 • H1 EBITDA reduced by 28% to DKK 434 mil
Slide 3: Background for Change in Profit Expectation
BACKGROUND FOR CHANGE IN PROFIT EXPECTATION ANNOUNCED 14 AUGUST • Increasingly difficult market conditions: • Lower market growth than expected leading to overcapacity and more competitive pressure in certain markets • Largest impact on east-west freight flows in Baltic area and Irish-Continental ma
Slide 4: Business Area Performance
BUSINESS AREA PERFORMANCE EBITDA per business area, H1 Figures in DKK million 500 -60 • Ro-Ro Shipping: Stable performance on North Sea, downturn on east-west Baltic routes. Increase in tonnage costs (60) 400 • Container Shipping: Good performance in industrial logistics and chartering, downturn f
Slide 5: Financials H1 2008
FINANCIALS H1 2008 Christian Merrild, CFO 5
Slide 6: Higher Cost Level Erodes Margins
HIGHER COST LEVEL ERODES MARGINS Change Change DKK mill. Q2 2007 Q2 2008 08/07 H1 2007 H1 2008 08/07 Revenue 2.104 2.209 5% 3.984 4.153 4% Revenue growth, % 13,2 5,0 15,5 4,2 Operating profit before depreciation (EBITDA) 396 294 -26% 600 434 -28% EBITDA-margin, % 18,8 13,3 15,1 10,5 Profit on dispos
Slide 7: Q2 per Business Area
Q2 PER BUSINESS AREA DKK mill. Q2 2007 Q2 2008 Change, % Comments Revenue DFDS Group 2.104 2.209 5,0 Ro-Ro Shipping 904 997 10,3 Volumes down 2%, rate level slightly up, increase in BAF Container Shipping 394 441 11,9 Increase in industrial volumes, increase in BAF Passenger Shipping 517 503 -2,7 Ad
Slide 8: H1 EBITDA Margin Development
H1 EBITDA MARGIN DEVELOPMENT • Adjusted for rise in bunker surcharge, revenue for H1 2008 was on a level with H1: EBITDA margin development, adjusted for increase in bunker surcharge H1 2007 16 • Bunker: Net increase in bunker cost 15 0,9 decreases margin by 0.9% point 14 0,4 • Charter: Capacity exp
Slide 9: Cash Flow & Investments
CASH FLOW & INVESTMENTS • Free cash flow of DKK 333 mill. for H1 2008 Cash flow & investments 800 • Net investments of DKK 104 mill. include sale of Tramp with proceeds of DKK 156 mill. and 600 profit of DKK 22 mill. DKK mill. 400 • Extension of three ro-ro ships planned for 2009 200 increases inves
Slide 10: Continued Solid Financial Platform
CONTINUED SOLID FINANCIAL PLATFORM Debt and Equity Ratio 5 39 • Net interest bearing debt reduced by 14% to 38 DKK 3.68 bill. from end of H1 2007 4 37 • Net interest bearing debt reduced by 4% to 3 DKK 3.68 bill. from end of 2007 36 DKK bill. % 35 • Equity ratio rose to 38% from end of H1 2007 2 and
Slide 11: Oil Price & Exchange Rates
OIL PRICE & EXCHANGE RATES Oil price development • Oil price peaked at a rise of 55% in early July – rise down to 28% end of August 850 800 • Full year rise in bunker cost of approx. DKK 750 400 mill. with a direct profit impact of approx. DKK 80 mill. 700 USD tons 650 • Impact on all business units
Slide 12: Going Forward 2008
GOING FORWARD 2008 Niels Smedegaard, President and CEO 12
Slide 13: Market Situation 2008: Expectations for 2nd Half
MARKET SITUATION 2008 EXPECTATIONS FOR 2ND HALF • Economic downturn now impacting certain of our key markets • Turnaround of Baltic market area remains uncertain • Passenger markets in Scandinavia are relatively stable, UK market expected to come under more pressure • Irish market expected to remain
Slide 14: Planned Adjustments of Activities
PLANNED ADJUSTMENTS OF ACTIVITIES Reduction of capacity Cost reductions • Ro-pax route Germany-Latvia reduced • Renegotiation of certain rate agreements from two to one ship (Oct) • Implementation of phase two of DFDS • Ro-ro route Sweden-Belgium reduced from Seaways’ profit improvement plan four to
Slide 15: 2008 Performance Expectations DFDS Group
2008 PERFORMANCE EXPECTATIONS DFDS GROUP • Revenue growth of approximately 2%, previously 3-5% • EBITDA decrease of 15-20%, previously approximately on a level with 2007 • Total net investments of approximately DKK 400 mill., previously DKK 200 mill. • Free cash flow expected to be approximately DKK
Slide 16: Our Strategic Agenda Is Set
OUR STRATEGIC AGENDA IS SET Strategy: From Routes to Network: Observations: 1. Build sea-based European transport network • Industry-wide impact of change in market conditions and high oil price 2. Integrate value-generating customer solutions for freight and passengers • Effects may help drive nece
Slide 17: From Routes to Network Q&A
FROM ROUTES TO NETWORK Q&A Thank you for your attention!