DFDS Q3 2024 INTERIM REPORT - WORKING THROUGH HEADWINDS

07 Nov 2024 07:30 CET

ANNOUNCEMENT NO. 80/2024


Q3 2024

* Revenue up 11% to DKK 8.0bn Organic growth was 4%
* EBIT reduced 11% to DKK 785m
* Adjusted free cash flow of DKK 396m
* CO2 ferry emission intensity lowered 1.6%

Outlook 2024 (updated 1 November 2024)

* EBIT of DKK 1.5-1.7bn
* Revenue growth of 8-10%
* Adjusted free cash flow of around DKK 1.2bn


"Despite market headwinds, we continued in line with our organic growth
ambitions to protect and grow volumes in Q3 on the back of our network
strength," says Torben Carlsen, CEO.


  Q3 Q3 Change LTM LTM Change Full-year

  2024 2023 % 2023-24 2022-23 % 2023

DKK m   Restated     Restated   Restated
-------------------------------------------------------------------------------
Revenue 7,965 7,190 11 29,389 27,014 9 27,304

EBITDA 1,508 1,556 -3 4,690 4,945 -5 4,890

EBIT 785 886 -11 1,862 2,425 -23 2,326

Adjusted free cash
flow 396 521 -24 2,186 1,706 28 2,773

ROIC, % - - - 5.8 8.1 - 7.6

Financial leverage,
times - - - 3.3 2.9 - 2.9


CEO's comments

Q3 was as expected a challenging quarter. The European slowdown in demand and
manufacturing that began in Q2 became more widespread in Q3. Instead of a
rebound in Q4, we are now expecting a further slowdown in the rest of the year.

Despite the market headwinds, we continued in line with our organic growth
ambitions to protect and grow volumes in Q3 on the back of our network strength.
This did not, however, translate into earnings growth as price and margin
pressures were intensified through our exposure to the automotive sector, the
Baltic region and eastern Europe, and the new Brexit border checks that are
holding back food exports to the UK.

Our Q3 result was therefore lower than expected and following our revised view
on Q4 market demand, the 2024 earnings outlook range was lowered.

We remain committed to moving our green transition forward even though this
entails extra costs in the short-term. Strengthening customer service and
operating efficiency through standardisation and digitisation are also strategic
priorities.

Ferry increased volumes in tough market

Our freight ferry network achieved 4% organic growth in Q3 which was overall in
line with our expectations. Pricing continued however to be impacted by
overcapacity in some network regions. The organic passenger volume growth was
2%, and we're pleased to report that our new route network across Strait of
Gibraltar had a successful high season.

Logistics challenged by market slowdown

A large part of the Logistics' network continued in Q3 to perform on level with
2023, especially the UK/Ireland network. Earnings pressures did however increase
further in Q3, not least in full-load (FTL) markets, and this is expected to
continue in Q4. A set of specific actions are being taken to mitigate headwind
impacts and improve earnings. The Nordic Cold Chain turnaround is in addition
still expected to be completed by year-end.

Capital distribution

We continue to return excess capital to shareholders. Our share buyback program
has year-to-date returned DKK 380m to shareholders besides the dividend of DKK
168m.

Outlook 2024

The EBIT outlook range is narrowed and lowered following a Q3 result below
expectations and a weaker market outlook for Q4. The adjusted free cash flow
outlook is changed to around DKK 1.2bn from previously DKK 1.5bn.


Read the Q3 2024 interim report here:

https://www.dfds.com/en/about/investors/reports-and-presentations/q3-report-
2024
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.dfds.com%
2Fen%2Fabout%2Finvestors%2Freports-and-presentations%2Fq3-report-
2024&data=05%7C02%7Cudsbn%40dfds.com%7Cb4f7dac62dfe4525fdc208dcfe756546%7C73a994
66ad0542219f90e7142aa2f6c1%7C0%7C0%7C638665027365631638%7CUnknown%7CTWFpbGZsb3d8
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3D&reserved=0)

7 November 2024. Conference call today at 10.00am CET

Register ahead of the call via this link
(https://services.choruscall.it/DiamondPassRegistration/register?confirmationNum
ber=5212476&linkSecurityString=bf08bdfc8).
Access code is mailed after registration. Follow live-streaming of call via this
link (https://getvisualtv.net/stream/?dfds-q3-2024).


Contact
Torben Carlsen, CEO +45 33 42 32 01
Karen Boesen, CFO +45 20 58 58 40
Søren Brøndholt Nielsen, IR +45 33 42 33 59
Dennis Kjærsgaard Sørensen, Media +45 42 30 38 47


About DFDS

We operate a transport network in and around Europe with annual revenue of DKK
28bn and 14,000 full-time employees.

We move goods in trailers by ferry, road, and rail plus we offer complementary
and related logistics solutions.

We also move car and foot passengers on short sea and overnight ferry routes.

DFDS was founded in 1866 and is headquartered and listed in Copenhagen


This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site

631498_DFDS_NO_80_07_11_2024_Q3_REPORT.pdf