On track to deliver on outlook
Q1 investor call, 8 May 2024
Q1 2024 investor call agenda
- Strategy update
- Q1 overview
- Moving to Green
- Capital distribution
- Outlook & priorities
2
Moving Together Towards 2030 -
Moving Together Towards 2030
Unlocking 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 intensity
- Six green ferries in operation by the end of 2030
- 75% reduction of land emission intensity
Financial ambitions, 2024-2026/27
- Annual Adjusted free cash flow of DKK 1.5bn
- Capex of DKK 1.5-2.0bn annually
- ROIC of around 10% by 2027
- NIBD/EBITDA of 2.5x by 2026
Strategy update
- Network expansion fulfilled with Ekol Logistics acquisition agreement
- Organic growth focus supported by network capabilities and presence in high-growth markets
- Standardise & Digitise teams in place, projects starting to yield results
- Another 100 e-trucks ordered to further decarbonise land transport
- Green corridor project application for RoRos powered by green ammonia submitted for EU funding
3
Financial ambitions 2024-2026/27
• | Group Q1 ROIC at 7% | • | Q1 capex as expected |
• | Ferry at 9% - Baltic Sea | • | Capex outlook of DKK 1.75bn |
headwind, Channel improving | on track for 2024 |
- Logistics at 5% - focus on Nordic/ Continent CC improvement
- Q1 cash flow reduced by seasonal working capital impact
- Adjusted free cash flow of DKK 1.5bn on track for 2024
- FRS acquisition increased Q1 NIBD/EBITDA to 3.2x
- Deleveraging expected Q2-3
- Ekol Logistics acquisition set to increase leverage in Q4
ROIC, % | Capex*, DKK bn | Adjusted free cash flow*, DKK bn | Financial leverage, | ||||||||||||||||||||||||||||||||
10% ambition | NIBD/EBITDA, times | ||||||||||||||||||||||||||||||||||
10 | 3.0 | 3.0 | |||||||||||||||||||||||||||||||||
4.0 | |||||||||||||||||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||||||
3.0 | |||||||||||||||||||||||||||||||||||
6 | 2.0 | 2.0 | |||||||||||||||||||||||||||||||||
4 | 1.0 | 2.0 | |||||||||||||||||||||||||||||||||
2 | 1.0 | ||||||||||||||||||||||||||||||||||
1.0 | |||||||||||||||||||||||||||||||||||
0 | |||||||||||||||||||||||||||||||||||
2022 | 2023 | Q1 LTM 2024 | |||||||||||||||||||||||||||||||||
DFDS Group | Ferry Division | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||||||||||
2022 | 2023 | Q1 LTM | Outlook | ||||||||||||||||||||||||||||||||
2022 | 2023 | Q1 LTM | Outlook | 2022 | 2023 Q1 LTM | Ambition | |||||||||||||||||||||||||||||
Logistics Division | 2024 | 2024 | 2024 | 2024 | 2024 | 2026 | |||||||||||||||||||||||||||||
4 | *2023/Q1 LTM 2024 include DKK 1.5bn inflow from sale & leaseback of three freight ferries |
Q1 result ahead of expectations in challenging market environment
Overcapacity impacting | Gradual market recovery | |
amid good results | expected | |
Freight ferry volume pick- | Mixed demand picture - | |
up in several areas | gradual recovery is still | |
base case scenario | ||
Freight ferry pricing | Continued overcapacity | |
pressure rising in | ||
overcapacity areas | expected in Channel and | |
Baltic Sea ferry markets | ||
Passenger result improved | European road transport | |
Challenging quarter for | margins still under | |
Cold chain logistics | pressure from excess | |
haulage capacity vs | ||
Mixed volume picture in | current demand | |
land transport markets, | ||
continued margin pressure |
Network expanded
Strait of Gibraltar routes added to ferry network from 10 January
Agreement to acquire Ekol Logistics' international
transport network - closing expected Q4 2024
5
EBIT lower than last year but ahead of expectations
DFDS Group - Q1 EBIT
DKK m
• Group Q1 revenue up 11% and up 1% |
adjusted for acquisitions/bunker |
surcharges |
2024
2023
2022
2021
2020
131
200
216
268
363
• Group Q1 EBIT of DKK 200m down 45% |
due to lower results in both divisions |
• Ferry EBIT of DKK 169m reduced as |
higher passenger earnings were more |
than offset by lower freight result |
• Logistics EBIT of DKK 94m lowered by |
decrease in mainly Cold Chain earnings |
0 | 50 | 100 | 150 | 200 | 250 | 300 | 350 | 400 |
Q1 2024 EBIT development vs LY
DKK m
350 | |||||
-117 | |||||
250 | 363 | -26 | |||
-20 | |||||
200 | |||||
150 | |||||
Q1 2023 | Ferry | Logistics | Non-allocated | Q1 2024 |
6
Q1 2024 income statement
- Revenue growth of 11% detailed on next slide
- EBITDA down 2% as higher Logistics earnings were offset by Ferry Division and Non-allocated costs
- Depreciation up 26% or DKK 146m driven by DKK 103m increase of Ferry depreciation and DKK 44m increase of Logistics depreciation
- Amortisation up DKK 7m due to acquisitions
- Finance cost up DKK 69m driven by a higher interest rate level and NIBD increase
DFDS Group, DKK m | Q1 23 | Q1 24 | Δ | Δ |
Revenue | 6,341 | 7,011 | 670 | 11% |
EBITDA | 972 | 957 | -15 | -2% |
Margin | 15.3% | 13.6% | -1.7% | |
Other income/costs, net | 2 | 6 | 5 | n.a. |
Depreciation and impairment | -570 | -716 | -146 | 26% |
EBITA | 403 | 247 | -156 | -39% |
Margin | 6.4% | 3.5% | -2.8% | |
Amortisation | -41 | -47 | -7 | 16% |
EBIT | 363 | 200 | -163 | -45% |
Margin | 5.7% | 2.9% | -2.9% | |
Ferry Division | 286 | 169 | -117 | -41% |
Logistics Division | 120 | 94 | -26 | -22% |
Non-allocated | -43 | -63 | -20 | 47% |
Finance | -127 | -195 | -69 | 54% |
Profit before tax | 236 | 5 | -231 | -98% |
Tax | -99 | -52 | 47 | -47% |
Profit after tax | 137 | -48 | -185 | -135% |
Q1 2023 has been restated to change in accounting practice applied to IFRS 16 service element since 2024
7
Revenue growth driven by passengers & acquisitions
-
Strait of Gibraltar revenue of
DKK 255m included under Acquisitions - Passenger revenue up 22% driven mainly by Channel
- Freight ferry revenue slightly up as higher North Sea/Mediterranean revenue offset lower Channel/Baltic Sea revenue
- Logistics revenue down 2% reflecting lower volume and surcharge levels
- Acquisitions added revenue of
DKK 587m (McBurney, MacLeod, Estron, Strait of Gibraltar)
Change in revenue, Q1 2024 vs Q1 2023
DKK m
7,250 | |||||
7,000 | -14 | ||||
6,750 | 587 | ||||
6,500 | 26 | 7,011 | |||
122 | -51 | ||||
6,250 | |||||
6,341 | |||||
6,000 | |||||
Q1 2023 | Passenger Freight ferry | Logistics | Acquisitions | Other | Q1 2024 |
8
Ferry Division - contribution stable despite headwinds
• | Freight Ferry EBITDA down DKK 77m or 11% |
driven by lower Baltic Sea/Channel results and | |
higher net bunker cost | |
• | Volumes up 4.2% adjusted for SoG. Freight |
rate levels reduced in overcapacity areas |
Ferry Division - Q1 EBIT vs LY
DKK m | ||||||
300 | ||||||
1 | ||||||
250 | -77 | 62 | ||||
-103 | ||||||
200 | 286 | |||||
0 | ||||||
150 | ||||||
169 | ||||||
100 | ||||||
Q1 2023 | Freight ferry | Passenger | Other | Depreciation Amortisation | Q1 2024 | |
EBITDA | EBITDA | & other |
• | Passenger EBITDA up DKK 62m mainly due to |
higher volumes and spending in Channel | |
• | Depreciation increased DKK 103m due to sale |
& leaseback impact, higher level and cost of | |
dockings, and SoG acquisition |
LM '000
5,000
4,000
3,000
2,000
1,000
0
Lane metres per area
9
North Sea | Mediterranean | Channel | Baltic Sea | Strait of Gibraltar |
Q1 22 Q1 23 Q1 24
Logistics Division - mixed results in challenging market
- EBITDA organic down DKK 39m or 14% due to mainly lower result for Nordic/Continent Cold Chain following continued slowdown in meat volumes and new UK border check start February
- EBITDA almost on level with 2023 for all other business areas
- EBITDA acquisitions up DKK 57m from full McBurney quarter and additions of MacLeod/Estron
- Depreciation increased DKK 45m of which DKK 28m was due to acquisitions
Logistics Division - Q1 EBIT vs LY
DKK m
150 | 3 | ||||
-45 | |||||
57 | |||||
100 | -39 | ||||
120 | -3 | ||||
94 | |||||
50 | |||||
Q1 2023 | EBITDA | EBITDA | Other | Depreciation Amortisation | Q1 2024 |
organic | acquisitions | & other |
Logistics margins
12
10
8
% | 6 |
4
2
0
Q1 23 | Q2 23 | Q3 23 | Q4 23 | Q1 24 | ||
EBITDA-margin | EBIT-margin | |||||
10
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Disclaimer
DFDS A/S published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 09:42:01 UTC.