Slides
Page 1
Initiatives launched to speed up Mediterranean progress Q2 2025, 20 August 2025
Page 2
Agenda • Introduction • Q2 overview • Moving to Green • 2025 focus areas • Outlook & priorities 2
Page 3
Moving Together Towards 2030 – Moving to green 3 Moving Together Towards 2030 Unlock network value • Protect & Grow Profits • Standardise to simplify • Digitise to transform • Moving to green • Be a great place to work Green transition • 45% reduction in ferry emission intensity • 75% reduction of land emission intensity Cash flow focus • Long-term NIBD/EBITDA target range of 2.0-3.0x • Debt reduction • Non-core asset review • Working capital initiatives
Page 4
Geopolitical, market & competitor environment Geopolitical • US disruptions settling down • Ukraine war uncertainty • Germany to lift investments • Nearshoring outlook positive Markets • Subdued European growth • Turkish export challenged by FX parity • Oil price spread increasing Competition • Adjusting Istanbul-Trieste capacity • Increased capacity North Sea South • Continental road and warehousing markets oversupplied 4
Page 5
Initiatives launched to speed up Mediterranean progress Stable network, focus area initiatives launched Mediterranean Ferry new price model launch & capacity adjustments TES* turnaround profitable volume growth priority Stable outlook for rest of network Working capital program and capex discipline 5 Q2 earnings lowered by Mediterranean headwinds Ferry Division result below expectations driven by Mediterranean Logistics Division result ahead of expectations helped by transaction gain Türkiye & Europe South* result below expectations Strong H1 cash flow driven by targeted initiatives Focus areas progressed less than expected Logistics Boost projects showing strong progress Mediterranean Ferry – Q2 volumes in line with expectations while pricing initiatives not effective TES turnaround –rightsizing progressing as planned while volume development weaker than expected *TES
Page 6
Q2 2025 6
Page 7
3% revenue growth in Q2 7 • Group revenue growth of 3.0% and organic growth* was -2.3% • Passenger organic revenue up 5.3% driven by higher Channel and SoG revenue • Freight ferry revenue down 3.8% and organic revenue* up 0.5% as Mediterranean decrease offset by other areas • Logistics organic revenue down 2.3% as UK & Ireland growth offset by lower Nordic/ Continent revenue, partly due to restructurings • Acquisitions added net revenue of DKK 435m (Ekol 677, Oslo-Copenhagen sale -242) *Adjusted for BAF/ETS, acquisitions/divestments, and route changes Sale of Oslo-Copenhagen 7,580 7,810 -242 61 -77 -76 677 -118 6,900 7,150 7,400 7,650 7,900 Q2 2024 Passenger Freight ferry Logistics Acquisitions Other Q2 2025 DKK m Change in revenue, Q2 2025 vs Q2 2024
Page 8
Q2 2025 income statement • EBITDA down 28% or DKK 340m following lower results in both divisions offset by a DKK 21m lower corporate cost • Depreciation up 4% or DKK 26m from mainly addition of Ekol International Transport balanced by sale of Oslo-Copenhagen route • 2024 impairment reversal of DKK 33m from Oslo-Copenhagen sale – 2025 gain in Sweden of DKK 51m from warehouse transaction • EBIT lowered 69% to DKK 163m • Finance cost up 6% to DKK 214m as 4% net interest cost reduction was offset by currency variance 8 DFDS Group, DKK m Q2 24 Q2 25 Δ Δ Revenue 7,580 7,810 230 3% EBITDA 1,232 893 -340 -28% Margin 16.3% 11.4% -4.8% Other income/costs, net 8 9 2 n.a. Depreciation and impairment -702 -728 -26 4% Impairment reversal/Gain Sweden 33 51 18 n.a. EBITA 572 225 -347 -61% Margin 7.5% 2.9% -4.7% Amortisation -53 -62 -9 17% EBIT 519 163 -356 -69% Margin 6.8% 2.1% -4.8% Finance -202 -214 -12 6% Interest cost, net -209 -200 8 -4% Currency, net and other items 7 -13 -21 -291% Profit before tax 317 -51 -368 n.a. Tax -29 -36 -8 27% Profit after tax 288 -87 -376 n.a.
Page 9
EBIT weighed down by Mediterranean activities 9 • Q2 EBIT of DKK 163m down from DKK 519m • Ferry Q2 EBIT down DKK 322m to DKK 186m driven by lower Mediterranean result and one-off items • Logistics Q2 EBIT down DKK 52m to DKK 33m driven by TES and one-off items 406 841 718 519 163 0 100 200 300 400 500 600 700 800 900 2021 2022 2023 2024 2025 DKK m DFDS Group - Q2 EBIT 163 519 -322 -52 18 0 100 200 300 400 500 600 Q2 2024 Ferry Logistics Non-allocated Q2 2025 DKK m Q2 2025 EBIT development vs LY
Page 10
Ferry Division – most of network stable • EBIT decrease of DKK 322m to DKK 186m • EBIT rest-of-network1 down DKK 24m due to impacts from mainly lower oil price spread, Jersey start-up, and a higher cost for non-deployed ferries • Mediterranean’s result decreased by mainly lower pricing on routes impacted by intensified competition • One-off items include provisions in 2025 and releases and an impairment reversal in 2024 10 1 Adjusted for Mediterranean/Oslo-Cph/one-off items 507 186 -24 -181 -116 100 200 300 400 500 Q2 2024 EBIT rest-of- network Mediterranean One-off items Q2 2025 DKK m Ferry Division - Q2 2025 EBIT vs LY
Page 11
Logistics Division – earnings excluding TES improved • EBIT decrease of DKK 52m to DKK 33m • Nordic, Continent and UK & Ireland delivered results on level with 2024 excluding one-off items and German Foot and Mouth Disease impact • Türkiye & Europe South’s result below expectations 11 85 33 4 -68 12 0 25 50 75 100 Q2 2024 EBIT ex. acquisitions & one-off items Türkiye & Europe South One-off items Q2 2025 DKK m Logistics Division - Q2 2025 EBIT vs LY
Page 12
Q2 cash flows & capital • Operating cash flow DKK 1.1bn • Operating capex of DKK 0.3bn • Adjusted free cash flow of DKK 0.5bn bringing H1 to DKK 0.8bn supporting FY target of DKK 1.0bn • NIBD lowered DKK 1.1bn from year-end 2024 • Financial leverage, NIBD/EBITDA, of 4.2x up from 3.9x at year-end 2024 • Leverage expected to decrease in Q4 12 DKK bn Q2 2024 Q2 2025 Δ Δ Q2 LTM 2025-24 Cash flows Operating cash flow 1.3 1.1 -0.3 -22% 3.4 Capex Operating capex -0.4 -0.3 0.1 -26% -1.2 Ferries* 0.0 0.0 0.0 n.a. 0.1 Acquisitions 0.0 0.0 0.0 n.a. -1.1 Free cash flow 1.0 0.8 -0.2 n.a. 1.3 Adjusted free cash flow 0.7 0.5 -0.2 n.a. 1.3 Capital structure NIBD 15.2 16.1 0.9 6% n.a. NIBD/EBITDA, times 3.1 4.2 1.1 n.a. n.a. Equity ratio 38% 35% -3% n.a. n.a. *Sale/purchase/new-buildings & insurance compensation
Page 13
Moving to Green & Great Place to Work 13
Page 14
• Ferry CO2 emission intensity reduced 5% across route network in 2023 • Every Minute Counts schedule optimisation program delivered more than expected • E-trucks: 90 of 125 ordered trucks deployed end 2023 • 6 green ferries to be deployed by 2030 • Ferry and Logistics on track for short-term emission reduction targets Biofuel consumption increased 14 • Ferry CO2 emission intensity reduced 4.1% for own fleet, biofuel on Amsterdam- Newcastle and on new route Vilagarcia- Rotterdam • E-trucks: 145 e-trucks now in operation after increases in UK and Belgium • Safety – LTIF improved to 5.2 for Q2 2025 from 7.2 in Q2 2024 driven by both Logistics and Ferry improvements • Women in management positions up 1 ppt to 21% from H1 2024 14
Page 15
2025 focus areas 15
Page 16
3 focus areas to resolve in 2025 • Logistics Boost projects • Adapting Mediterranean • Turnaround of Türkiye & Europe South 16
Page 17
Logistics Boost projects on track • Eight Boost projects initiated in 2024 • Total Boost project monthly earnings turned positive in June from double-digit loss start of year • 5 Boost projects on threshold level or better, 3 below threshold but improved in Q2 17 Logistics Boost turnaround projects initiated in 2024 Cold chain Automotive Market slowdown Geopolitical Denmark domestic Gothenburg logistics Dutch full-load (FTL) flows Baltic slowdown Germany domestic Ghent, flows and domestic Dutch warehousing Continent-UK, Brexit phase 3 On track/Additional measures required ~414 FTE reductions made across Division (HQ and BUs) 4 traffic reductions (Baltic, DK, S-PL) 6 office close-downs (Sweden, Baltic, Germany, UK) 3 office mergers (Baltic, DK, Sweden)
Page 18
Mediterranean – new pricing model effective Sept 2025 • Ferry capacity increased with three RoRo ferries on Istanbul-Trieste corridor by competitor from mid- September 2024 • Own corridor capacity reduced >10% • Q2 pricing initiatives less effective than expected • Yield recovery expected to improve from September 2025 with launch of new, more robust pricing model • Redelivery of two chartered RoRo ferries expected in Q3 18 0 200 400 600 800 1,000 1,200 1,400 1,600 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 July L3M 2025 Mediterranean volumes, LM k
Page 19
19 Türkiye & Europe South Turkey Germany Slovenia Italy France Spain Belgium Poland Hungary Romania Greece Netherlands Continuing countries Countries moved to Continent BU Divestment/closure in progress • High-growth market driven by Turkey’s role as Europe’s manufacturing hub and nearshoring • Replicate proven RoRo model from northern Europe – road/ferry/rail • Provide unrivalled reliability, frequency & efficiency
Page 20
Türkiye & Europe South turnaround slowed by weak volumes Intermodal Optimising road/ferry/rail interactions • Operating risk sharing with customers/ suppliers inadequate • Adjustments of contracts ongoing • Pace of operating improvements below target 20 Operations Rightsizing of equipment fleet, asset sales, increased subcontracting • 17% or 1.1k equipment units reduced • Own haulage production reduced • Operating cost optimisation on track Commercial Customer portfolio review, price adjustments, new sales • Volumes around 10% below target • Transport market unsettled by ferry events • Focus on profitable tender wins and spot Organisation Rightsizing, network optimisation • Staff reduced to 2,750 from 3,700 • 3 country organisations to close during Q3 (Greece, Slovenia, Romania)
Page 21
Outlook & priorities 21
Page 22
EBIT outlook update reflects Mediterranean headwinds • Revenue growth outlook of around 5% unchanged • EBIT outlook updated to range of DKK 0.8-1.0bn from around DKK 1.0bn • Ferry Division’s EBIT range updated to DKK 0.875-1.0bn from DKK 1.0bn driven primarily by Mediterranean • Logistics Division’s EBIT range lowered to DKK 0.125-0.2bn from around DKK 0.2bn driven primarily by Türkiye & Europe South • Operating capex reduced to around DKK 1.4bn • Adjusted FCF of around DKK 1.0bn unchanged 22 DKK m Updated outlook 2025 Previous outlook 2025 2024 Revenue growth Around 5% Around 5% 29,753 EBIT 800-1,000 Around 1,000 1,506 Per division: Ferry Division 875-1,000 1,000 1,525 Logistics Division 125-200 200 200 Non-allocated items -200 -200 -219 Capex Around -1,300 Around -1,500 -1,451 Types: Operating -1,400 -1,600 -1,451 Ferries: sale & purchase, new-buildings 100 100 0 Adjusted free cash flow Around 1,000 Around 1,000 957
Page 23
Key priorities 2025 • Organic growth focus • Deliver on three specific turnaround focus areas • Cost focus to improve performance • Cash flow focus • Green transition – committed to transition pathway • DEI – committed to deliver on targets 23
Page 24
24