Dfds A/s · OMXCOP:DFDS
Dfds A/s — Q3 2007 Earnings Presentation
29 slides from Dfds A/s's earnings presentation, Nov 30, 2007
Slide 1: Q3 2007 Analyst meeting
DFDS A/S Q3 2007 Analyst meeting 30 November 2007
Slide 2: Contents
DFDS A/S Contents • Q3 Headlines • Strategy • Passenger activities (DFDS Seaways) • Freight activities (DFDS Tor Line) • Q1-3 Accounts • Expectations 2007
Slide 3: Q3 Headlines 2007
DFDS Q3 2007 Slide 3 Q3 Headlines 2007 • New Group strategy announced mid September • Full implementation of new business structure in annual report 2007 • Broadly based improvement for freight activities, although... • ...growth slowed in Q3 - activity level still high • Revenue & profit growth for
Slide 4: Key Figures Q3 2007
DFDS Q3 2007 Slide 4 Key Figures Q3 2007 DKK million Q3 2006 Q3 2007 Δ% Q1-3 2006 Q1-3 2007 Δ% 2006 Revenue 2.020 2.263 12 5.470 6.247 14 7.524 DFDS Tor Line 1.414 1.621 15 4.072 4.767 17 5.710 DFDS Seaways 617 650 5 1.419 1.500 6 1.838 EBITDA 433 472 9 904 1.072 19 1.129 EBITDA-margin, % 21,4 20,9
Slide 5: Focus Areas in Go Forward Plan
DFDS Q3 2007 Slide 5 4 Focus Areas in Go Forward Plan Operational Operational Win Winthe theCustomer Customer Work Workas asaaTeam Team Fund Fundthe theFuture Future Excellence Excellence 1. Refine Customer and Market 1. Launch Project Clear Ship 1. Restructure Organization & 1. Redefine Finance fun
Slide 6: Four Main Strategies
DFDS A/S Four Main Strategies 1. Build European sea transport network 2. Integrate value creating customer solutions for freight and passengers 3. Secure volumes 4. Continuous operational focus
Slide 7: Main Implementation Areas
Main Implementation DFDS Q3 2007 Slide 7 Areas 1 Expand network 3 Gain strategic control through port access 2 Secure volumes for network 4 Integrate passenger activities
Slide 8: Recent Industry Developments
DFDS Q3 2007 Slide 8 Recent Industry Developments • PO Ferries not part of DP World IPO • Color Line sells tonnage and closes route between Western Norway and Denmark • 57% of Attica Group (GR) acquired by Marfin Investment Group (GR) • 98% of UN Ro-Ro (Turkey) acquired by KKR (USA) • Divestment of
Slide 9: Macro Perspective – some "?"
DFDS Q3 2007 Slide 9 Macro Perspective – some “?” • Credit crisis of limited scope or will major crisis develop? • Northern Europe: Growth pause before renewed pick-up or beginning of downturn? • Oil price hike – short term speculation or long term increase? • Apparent consensus about further deprec
Slide 10: Passenger activities (DFDS Seaways)
DFDS Q3 2007 Slide 10 Passenger activities (DFDS Seaways)
Slide 11: Market development
DFDS Q3 2007 Slide 11 Market development • Overall travel market still very competitive, but growing • Color Line deployed larger tonnage in September between Norway and Germany • Color Line’s route between Western Norway and Denmark closed in November • High activity level on overseas incoming mark
Slide 12: Performance Q1-3 07
DFDS Q3 2007 Slide 12 Performance Q1-3 07 Pass. act. (DS) - Revenue per quarter 700 600 • Revenue up by 6% 500 DKK mill. 400 • No. of passengers up by 1%, adjusted for 300 route changes increase was 3% 200 100 • 6% rise of passengers per departure on a 0 comparable basis Q1 Q2 Q3 Q4 2006 2007 • EBIT
Slide 13: Extra tonnage & bunker costs in Q4
DFDS Q3 2007 Slide 13 Extra tonnage & bunker costs in Q4 • Technical problems necessitate repairs in Q4, which will disturb operations and increase costs • Docking in January expected to remedy remaining issues • Oil price increase of almost 40% since mid-year • Bunker surcharge introduced in July a
Slide 14: Going forward
DFDS Q3 2007 Slide 14 Going forward • Oslo route: Optimize profit • Amsterdam route: Increase profit level • Bergen route: Build volume • Esbjerg route: Optimize profit
Slide 15: Freight activities (DFDS Tor Line)
DFDS Q3 2007 Slide 15 Freight activities (DFDS Tor Line)
Slide 16: Market development
DFDS Q3 2007 Slide 16 Market development • Positive overall sea freight market • Market supported by economic growth and structural factors • Slowdown of volume growth more pronounced in Q3 • North Sea affected by general uncertainty in economy • Baltic area affected by coming elctions in Russia and
Slide 17: Performance Q1-3 07
DFDS Q3 2007 Slide 17 Performance Q1-3 07 Freight act. (DTL) - Revenue per quarter 1.800 1.500 • Revenue up by 17% 1.200 DKK mill. 900 • Approx. 70% of rise due to 600 acquisition of DFDS Container Line in 300 Q406 0 Q1 Q2 Q3 Q4 • Lanemetres up by 1% compared to 2006 2007 last year adjusted for acti
Slide 18: More capacity on ScanBridge
DFDS Q3 2007 Slide 18 More capacity on ScanBridge • Route services customer’s trade flows between Scandinavia and Lithuania, Russia, Ukraine and Belarus • Third ship (ro-ro) will enter service beginning of December • Route will be serviced by two ro- pax and one ro-ro • 50% increase in freight capac
Slide 19: Q1-3 Accounts 2007
DFDS A/S Q1-3 Accounts 2007
Slide 20: P/L-account
DFDS Q3 2007 Slide 20 P/L-account DKK mill. Q1-3 2006 Q1-3 2007 Change, % In % of revenue Revenue 5.470 6.247 14,2 n.a. n.a. Ship operating costs 2.837 3.270 15,3 51,9 52,3 Charter costs 382 442 15,7 7,0 7,1 Staff costs 1.019 1.130 11,0 18,6 18,1 Other costs 329 332 1,0 6,0 5,3 Operating profit befo
Slide 21: Bunker price development
DFDS Q3 2007 Slide 21 Bunker price development 550 500 ca. 40% increase from end of August to November 450 400 USD per ton 350 LSFO 180 300 250 200 150 100 jan-06 mar-06 maj-06 jul-06 sep-06 nov-06 jan-07 mar-07 maj-07 jul-07 sep-07 nov-07
Slide 22: Consolidation of B/S
DFDS Q3 2007 Slide 22 Consolidation of B/S DKK mill. Q1-3 2006 Q1-3 2007 Change, % In % of total assets Intangible assets 286 474 66,0 3,1 4,8 Tangible assets 7.401 7.521 1,6 79,4 75,9 Other non-current assets 120 104 -13,3 1,3 1,1 Current assets 1.513 1.807 19,5 16,2 18,2 Total assets 9.320 9.907 6
Slide 23: Strong free cash flow in 2007
DFDS Q3 2007 Slide 23 Strong free cash flow in 2007 1.200 1.000 800 600 400 200 DKK mill 0 -200 -400 -600 -800 -1.000 -1.200 Q1-3 2005 Q1-3 2006 Q1-3 2007 Cash flow from operations ex. interest after tax Net investments Free cash flow
Slide 24: Increasing capacity utilization
DFDS Q3 2007 Slide 24 Increasing capacity utilization 10.000 9.000 1,0 8.000 0,8 7.000 6.000 DKK mill 0,6 Times 5.000 4.000 0,4 3.000 2.000 0,2 1.000 0 0,0 Q1-3 2005 Q1-3 2006 Q1-3 2007 Revenue Average invested capital Turnover rate invested capital, times, p.a.
Slide 25: Improved ROIC
DFDS Q3 2007 Slide 25 Improved ROIC 12 10 8 6 4 % 2 0 -2 -4 -6 Freight (DFDS Tor Passenger (DFDS Non-allocated items DFDS Group Line) Seaw ays) Q1-3 2005 Q1-3 2006 Q1-3 2007
Slide 26: Expectations 2007
DFDS A/S Expectations 2007
Slide 27: Expectations 2007
DFDS Q3 2007 Slide 27 Expectations 2007 • Total revenue growth of around 10% - unchanged from half-year • Investments will not exceed DKK 250 million - unchanged from half-year • Freight activities (DFDS Tor Line): EBITA to rise more than previously announced - unchanged from half-year • Passenger a
Slide 28: New business structure
DFDS Q3 2007 Slide 28 New business structure Business Area Revenue, Q1-3 EBITA, EBITA-margin, 2007, Q1-3 2007, Q1-3 2007, DKK mill. DKK mill. % Ro-Ro Shipping 2.730 504 18,5 Container Shipping 1.226 54 4,4 Passenger Shipping 1.500 96 6,4 Terminal Services 524 -11 -2,1 Trailer Services 742 19 2,6 Tra
Slide 29: Thank you for your attention!
DFDS A/S Thank Q1 you 2007 for your attention!