Dfds A/s · OMXCOP:DFDS

Dfds A/s — Q2 2014 Earnings Presentation

14 slides from Dfds A/s's earnings presentation, Aug 21, 2014

  1. Slide 1: Expectations upgraded after solid increase in revenue and profit

    1 EXPECTATIONS UPGRADED AFTER SOLID INCREASE IN REVENUE AND PROFIT Q2 2014 21 August 2014 Copenhagen

  2. Slide 2: Contents

    CONTENTS • Overview • Financials • Channel focus • Trends • Outlook • Priorities The statements about the future in this announcement contain an element of risk and uncertainty, both in general and specific terms, and this means that actual developments may diverge considerably from the statements a

  3. Slide 3: Satisfactory performance in Q2

    DFDS Group Q2 2014 – Overview SATISFACTORY PERFORMANCE IN Q2 • 8% revenue increase driven by organic growth and acquisitions • EBITDA increase of 31% to DKK 403m – slightly ahead of expectations • Improved results in North Sea, Channel and Logistics Division • Positive Easter impact on passenger ser

  4. Slide 4: Solid increase of EBITDA

    DFDS Group Q2 2014 – Overview EBITDA before special items DKK m SOLID INCREASE OF EBITDA 450 403 400 350 307 300 • Four of five business units increased 250 373 EBITDA in the Shipping Division 200 289 150 100 • Main drivers were volume growth, cost 50 savings & efficiencies and a positive 0 37 47 -1

  5. Slide 5: Q2 2014 key P/L figures

    DFDS Group Q2 2014 – Financials Change vs Q2 2014 KEY P/L FIGURES DKK m 1 Q2 14 Q2 13 LY REVENUE 3.302 3.051 251 EBITDA BEFORE SI 403 307 96 margin, % 12,2 10,0 2,2 • Result from associates up by DKK 25m P/L associates 24 -1 25 to DKK 24m due to the cancellation of a Gain/loss asset sales 2 2 1 port

  6. Slide 6: Revenue growth of 8%

    DFDS Group Q2 2014 – Financials REVENUE GROWTH OF 8% • DFDS Group revenue growth: 6% DFDS Group revenue development Q2 2014 organic growth and 2% from DKK m acquisitions 3.300 52 Main BU revenue drivers: 3.250 56 • North Sea: Volume growth 3.200 68 • Baltic Sea: Reefer volumes replaced 3.150 3.306 b

  7. Slide 7: EBIT before special items up by 93%

    DFDS Group Q2 2014 – Financials EBIT BEFORE SPECIAL ITEMS UP BY 93% DFDS Group EBIT development Q2 2014 Main BU EBIT drivers: DKK m 240 • North Sea: Volume growth, bunker & 15 vessel savings, terminal contract cancellation 215 6 6 22 • Baltic Sea: Impact from meat import 190 13 ban -9 237 26 165 • C

  8. Slide 8: Q2 free cash flow of DKK 203m

    DFDS Group Q2 2014 – Financials Q2 FREE CASH FLOW OF DKK 203M • Free cash flow (FCF) in Q2 2014 was 1.300 FCF: DKK 203m DKK 203m 1.200 85 -21 -177 • Positive cash flow from working capital 362 1.100 -263 -86 • Investments of DKK 263m include 1.000 DKK m dockings, scrubber installations, and 403 ARK

  9. Slide 9: New share buy-back to distribute excess funds to shareholders

    DFDS Group Q2 2014 – Financials NEW SHARE BUY-BACK TO DISTRIBUTE EXCESS FUNDS TO SHAREHOLDERS NIBD/EBITDA • The NIBD/EBITDA multiple decreased at 3,5 3,1 the end of Q2 to 1.8 from 1.9 at the end 3,0 of Q1 2,5 1,8 Times • Current outlook on earnings and 2,0 1,7 1,8 1,8 investments indicate leverage b

  10. Slide 10: Highly competitive markets

    DFDS Group Q2 2014 – Trends HIGHLY COMPETITIVE MARKETS • Freight volumes continue to grow in North Sea region, fuelled by the recovery of the UK economy • Still some overcapacity in shipping and haulage transport markets • So far, low visibility on the impact of latest Russian sanctions on general f

  11. Slide 11: Status Channel competition review process

    DFDS Group Q2 2014 – Channel focus STATUS CHANNEL COMPETITION REVIEW PROCESS • On 27 June 2014, the UK Competition & Markets Authority (CMA) banned Eurotunnel from operating ferries from Dover, thereby upholding its decision taken more than a year ago • CMA’s decision appealed by Eurotunnel/SCOP end

  12. Slide 12: Upgrade of EBITDA expectations range

    DFDS Group Q2 2014 – Outlook UPGRADE OF EBITDA EXPECTATIONS RANGE • 7% revenue increase, up from DKK m Outlook 2014 2013 6% due to acquisition of Quayside Group Revenue +7% (+6%) 12,097 • EBITDA range of DKK 1.30- 1.45bn (DKK 1.25-1.40bn) EBITDA before 1,300-1,450 (1,250-1,400) 1,213 special items •

  13. Slide 13: Our strategic priorities in 2014

    DFDS Group Q2 2014 – Priorities OUR STRATEGIC PRIORITIES IN 2014 1. Customer focus initiative 2. Continue streamlining of operations & overheads through efficiency & improvement projects 3. Resolve exceptional situation on Channel and challenges in Baltic Sea due to current crisis 4. Manage transiti

  14. Slide 14: Q2 solid increase

    Q2 SOLID INCREASE Q&A 21 August 2014 Copenhagen

DFDS — Q2 2014 Earnings Presentation on 6ix