Q1 2005 Analyst meeting, 25 May 2005

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Q1 2005Analyst meeting, 25 May 2005
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Contents

• The quarter in brief
• DFDS Seaways
• DFDS Tor Line
• The quarter in figures
• Profit forecast 2005

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Financial performance, 1st quarter 2005

• Revenue rose by 9
• Operating profit (EBITA) and pre-tax profit are
  on a par with the same period last year
• Considerable rise in invested capital following
  the addition of five new ro-ro vessels

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Benchmarking
DFDS Seaways on a level with most comparable
companies
DFDS Tor Line lower average than comparable
companies
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Benchmarking
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DFDS Seaways
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DFDS Seaways - Market development

• Positive reception for the upgrading of the Oslo
  ferry
• Generally stable market development, particularly
  in Scandinavia
• High level of competition due to an increasing
  range of short-break destinations
• Changes in duties on land, e.g. in the
  Netherlands, have influenced on-board sales
• Introduction of new vessels and consequently
  greater capacity in Norway primarily aimed at the
  German market

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DFDS Seaways - Financial performance
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DFDS Seaways - Financial performance

• Revenues negatively affected by fewer departures
  due to upgrading, and by alterations in Dutch
  tobacco duties
• 26 growth in passenger numbers per departure on
  Oslo route. Upgrading and early Easter helped
  progress
• The booking situation for the rest of the year is
  on a par with last year

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Upgrading welcomed by customers

• Customer surveys on Copenhagen-Oslo route
  revealed that
• The surveys were taken in the period immediately
  prior to the upgrading, and in each of the first
  10 weeks after the upgrading

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On-board sales undergoing transformation

• Changes in duties ashore have created new
  conditions for on-board sales
• Restructuring from mainly tax-free to more
  conventional shopping
• The process of improving retail skills is ongoing
  
• Continued major potential for shopping as part of
  income base

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New concepts Sea Shops

• New, brighter interior with more open areas
• Retention of traditional tax-free and
  shop-in-shop concept
• New product range

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Examples of new products

• Jack Stella products
• PILGRIM jewellery
• MontBlanc
• Up-market watches
• Toys bestsellers / season
• Sun-glasses
• Ver de Terre RTW for children (outdoor)
• Ski RTW accessories
• Gastronomic specialities
• International tourist souvenirs gift articles

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Examples of new products

• More local products and customised themes
  introduced on non-tax-free routes
• More seasonal variation, special offers and
  adaptation to varying customer segments in the
  course of the year, e.g. incoming guests
• Performance of existing product groups tested on
  an ongoing basis

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Examples of other measures

• Logistics optimisation, business intelligence and
  retail skills
• Clearer communication of savings and advantages
• Best Buys
• Shopping lists
• Signage on board and in shops
• TV on board
• Etc.

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DFDS Tor Line
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DFDS Tor Line - Market development

• Market in North Sea region was stable, with
  positive developments in areas affected by the
  new German road tax
• Growth supported by good progress in Scandinavia,
  while UK is more subdued - continued lack of
  balance in east/west traffic
• East/west traffic in the Baltic region remains
  affected by over-capacity in the land transport
  sector - the overall market is however growing
• Bad weather in the 1st quarter caused some
  disruption of operations

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DFDS Tor Line - Financial performance
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DFDS Tor Line - Financial performance

• Revenue positively affected by the purchase of
  Swedish transport activities, increased activity
  on North Sea routes and Lys-Line, and the DFDS
  Nordic Terminal
• Co-operation agreement with MACS increased
  volumes between UK and Benelux in the 1st quarter
  
• First quarter for BelgoBridge was hit by
  operational difficulties, resulting in a high
  level of costs
• Bad weather increased the general level of costs

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New EU member nations influencing the transport
market
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Open borders, less waiting time, increased
capacity by 30
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Rates under pressure in several areas
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1st quarter 2005 in figures
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Revenue rose by 9 to DKK 1,302 m.
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Costs and EBITDA development

• Bad weather in the 1st quarter increased vessels'
  operating costs for DFDS Tor Line
• Operational difficulties increased costs for the
  new BelgoBridge route
• Training expenses rose for DFDS Seaways in
  association with upgradings

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Depreciation and EBITA development

• DKK 7 mill. profit on the sales of two
  multi-purpose vessels in LISCO
• Slightly lower level of depreciation for ships

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EBITA on a par with last year
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Financing, tax and profits for the year

• The cost of financing remained on a par with last
  year despite a 23 rise in the average net
  interest-bearing debt

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Rate of turnover, invested capital
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Newbuilding no. 5 delivered at the beginning of
2005
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Stronger equity ratio expected for the whole year
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Transition to IFRS, 1st quarter 2005
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Profit forecast 2005

• Revenue will increase by around 6-8 on the basis
  of growth in both divisions
• Net investments of around DKK 500 m.
• DKK 300 m. in connection with the fifth and sixth
  new ro-ro ships
• DKK 100 m. in connection with the upgrading of
  cruise ferry ships
• Hedging
• A significant proportion of the expected oil
  consumption for the remainder of the year is
  hedged via price regulation agreements and
  financial contracts
• The majority of the cash flows denominated in USD
  are hedged
• Currency risks are overall very limited in 2005

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Profit forecast 2005

• DFDS Seaways' operating profit (EBITA) is
  expected to rise by around 10-15
• DFDS Tor Line's operating profit (EBITA) is
  expected to rise by around 5-10
• A small rise is expected in non-allocated costs
• For the DFDS Group, pre-tax profits are expected
  to be approximately DKK 225 m.
• The profit forecast has been calculated pursuant
  to IFRS rules. Calculated in the same manner,
  profits before tax for 2004 were DKK 201 m.

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DFDS Q1 2005