DFDS A/S : Conference Call Slides Q1 2024

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