Change the color of the angle, choose between the four colors FERRY ROUTES & LOGISTICS DFDS Group Overview in the top menu Enter the date in the field June 2018 WHAT WE DO . 2 We move freight and passengers on ferry routes in Europe 3 We also provide transport and logistics solutions to a wide range of businesses 4 Route network nowWe also expanded provide to Mediterraneantransport and logistics solutions to a wide range of businesses 5 DFDS structure, ownership and earnings split DFDS Group DKK bn Revenue 2017 per division 16 People & Ships Finance 14 12 10 9.8 Shipping Division Shipping Division Logistics Division 8 Logistics Division 6 Eliminations and other • Ferry services freight • Door-door transport 4 and passengers • Contract logistics 2 5.1 • Port terminals • 5,600 trailers and 0 • 45 ferries operated* 3,500 containers -2 EBITDA 2017 per division DKK bn DFDS facts Shareholder structure 3.0 2.5 • Founded in 1866 • Lauritzen: 42% 2.0 • Activities in 20 • Free float: 54% Shipping Division 1.5 2.5 25.4% margin European countries • Nasdaq Copenhagen Logistics Division 1.0 • 7,000 employees • Foreign ownership Non-allocated items share: ~30% 0.5 0.0 0.3 5.1% margin -0.5 6 *19 other vessels operated, including slot charter and vessel sharing agreements Freight, logistics & pax – northern Europe & Mediterranean Freight routes Logistics solutions Passenger routes ▪ Trailers, unaccompanied ▪ Door-door full & ▪ Overnight Key & accompanied part loads services ▪ Day ▪ Industry solutions ▪ Contract logistics ▪ Transport/holiday ▪ Port terminals ▪ Cruise ferry Freight Share of Group 45% 20% revenue 80% freight 20% pax 7 SHIPPING Q1 LTM 2018: Shipping Division Business units & ROIC, Q1 LTM 2018 Revenue North Sea Baltic Sea Channel North Baltic Channel Passenger France Passenger EBIT Sea Sea & Med France & Med 16% 31% 18% 24% 57% 0% 20% 40% 60% 80% 100% . 8 Roll on, roll off • Ro-ro/ro-pax shipping: roll on, roll off of freight units and passenger cars • Routes carry both unaccompanied and accompanied trailers • Other types of cargo, e.g. heavy industrial goods and containers, are placed on carrying equipment (mafis) and tugged on to the ship 9 Change the color of the angle, choose between the four colors FERRY TYPES Day ferry (ro-pax), Channel in the top menu Enter the date in the field Freight ferry (ro-ro) Cruise ferry Combined freight and passenger ferry (ro-pax) North Sea • Only freight ferry routes (ro-ro) • High share of industrial customers Sweden-UK/Continent • Forwarders main customer group UK-Continent North Sea Invested DKK m Revenue EBIT capital ROIC, % Q1 LTM 2018 3,740 675 4,109 16.0 Q1 LTM 2017 3,479 538 4,199 12.6 Lane metres, '000 ∆ vs LY Pax, '000 ∆ vs LY Q1 LTM 2018 12,880 7.0% n.a. n.a. 11 Q1 LTM 2017 12,041 Baltic Sea • Freight ferry (ro-ro) and combined freight and passenger ferry routes (ro-pax) • Forwarders main freight customer group • Russia to a large degree ‘closed for business’ by sanctions Baltic Sea Invested DKK m Revenue EBIT capital ROIC, % Q1 LTM 2018 1,467 376 1,191 31.5 Q1 LTM 2017 1,391 359 1,251 28.6 Lane metres, '000 ∆ vs LY Pax, '000 ∆ vs LY Q1 LTM 2018 4,543 7.4% 251 20.2% 12 Q1 LTM 2017 4,229 209 Channel • Combined freight and passenger ferry routes (ro-pax) • Forwarders main freight customer group • Seasonal passenger market, Q3 high season Channel Invested DKK m Revenue EBIT capital ROIC, % Q1 LTM 2018 2,351 369 2,040 18.0 Q1 LTM 2017 2,317 385 2,127 18.0 Lane metres, '000 ∆ vs LY Pax, '000 ∆ vs LY Q1 LTM 2018 19,160 -6.4% 3,864 14.2% Q1 LTM 2017 20,475 3,383 13 Passenger • Cruise ferry routes, overnight crossings • Seasonal passenger market, Q3 high season • Increasing share of overseas passengers • Also carries freight Passenger Invested DKK m Revenue EBIT capital ROIC, % Q1 LTM 2018 1,700 162 666 23.8 Q1 LTM 2017 1,699 255 581 42.9 Lane metres, '000 ∆ vs LY Pax, '000 ∆ vs LY Q1 LTM 2018 578 -9.6% 1,373 5.2% 14 14 Q1 LTM 2017 640 1,305 France & Mediterranean • Newhaven-Dieppe: combined freight and France & Med Invested passenger ferry DKK m Revenue EBIT capital ROIC, % concession route Q1 LTM 2018 483 24 42 57.5 • Marseille-Tunis: Q1 LTM 2017 481 9 -1 n.a. freight ferry route Lane metres, '000 ∆ vs LY Pax, '000 ∆ vs LY • Forwarders main Q1 LTM 2018 934 -7.5% 341 -1.4% freight customer group Q1 LTM 2017 1,010 346 15 IT’S ALL ABOUT THE ROUTE . 16 FERRY ROUTE CAPACITY DYNAMICS - stepwise addition of ferries on a route leverages capacity significantly Minimum required No. of ships Capacity impact Route no. of ships for on route today of entry* entry Dover-Calais 8 3 38% Gothenburg-Immingham 3 2 67% Fredericia- Copenhagen- 1 1 100% Klaipeda ddddd * Assuming entered ships are identical to incumbent ships and same no. of departures per ship Freight Infrastructure Ferry route Port Port terminal Bridge terminal • Logistics office/warehouseRoad Road ― Container/sideportRail route Rail Tunnel 17 KEY NORTHERN EUROPEAN FERRY COMPANIES • Logistics office/warehouse ― Container/sideport route 18 GDP growth of 2.0% expected for EU, 1.5% expected for UK • EU’s growth scenario UK-EU trade in goods - y/y Q-growth in volume indices expected to mitigate (ex. oil and erratics) uncertainty from Brexit 10% • UK export growth to EU 8% continues, import growth reduced by lower car imports 6% in Q4 2017 4% Brexit vote • Current EU-UK trading model 2% in place until Dec 2020 0% • Volume growth divergence between North Sea and -2% Channel likely to narrow but continue in 2018 -4% 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Exports Imports 19 19 Freight ferry capacity (ro-ro) – total down, large ships growing Global freight ferry (ro-ro) capacity per ship size, lane • Freight ferry (ro-ro) capacity expected to LM '000 metres decrease 2% in 2017 driven by smaller 1,000 CAGR: -2.4% ships 800 600 2501-4000+ • CAGR: +5.1% CAGR of -2.4% in global LM capacity 500-2500 since 2009 due to: 400 • Consolidation of volumes around hubs 200 CAGR: -6.9% • Increased utilization on large ships • Large ships with lower unit costs replace 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 smaller ships • Ongoing scrapping of older and smaller Global no. of freight ferries (ro-ro) per ship size ships No. of ships 500 CAGR: -5.1% • Number of ships likewise declining as is 400 CAGR: +4.6% availability of ferries for potential 300 2501-4000+ ‘speculative’ entrants 200 500-2500 100 CAGR: -7.6% • Order book consists primarily of orders 0 from Cobelfret and DFDS 2009 2010 2011 2012 2013 2014 2015 2016 2017 20 20 Ferry capacity (ro-pax) – stable, large ships growing Global ro-pax capacity per ship size, lane metres • Ferry (ro-pax) capacity expected to LM '000 remain flat in 2017 as increase in 600 CAGR: -0.2% capacity of large ships is balanced by 500 CAGR: +4.6% decrease for smaller ships 400 2501-4000+ 300 • CAGR of -0.8% in global LM capacity 1000-2500 200 CAGR: -1.8% since 2009 due to: 100 • Same drivers as for freight ferries… 0 • …mitigated by a positive impact from ro- 2009 2015 2016 2017 pax ferries with large freight capacity replacing traditional ferries aimed at Global no. of ferries (ro-pax) per ship size passenger market No. of ships 300 CAGR: -0.8% 250 • Decline in number of ships exceeds CAGR: +4.8% 200 capacity decline due to growth of large 150 2501-4000+ 1000-2500 ships 100 CAGR: -1.9% 50 • Order book consists primarily of orders 0 from Stena Line 2009 2015 2016 2017 21 21 Orders for own routes set to maintain stable ferry market • Trend towards larger ships set to Shipping Division: Fleet overview 2016 continue as ferry operators order ships Average age of for own route networks Ro-pax Passenger Ownership owned Total ships Ro-ro ships ships ships share, % ships, yrs • New build prices at low point Shipping Division 41 23 14 4 - - North Sea 19 19 - - 68 12 Baltic Sea1 9 2 7 - 67 15 • DFDS requirements for 2018-2022 for Channel 6 - 6 - 67 14 Passenger 4 - - 4 100 27 ongoing renewal, efficiency and capacity France & Med1 3 2 1 - 33 20 growth to accommodate demand: 1 Includes VSAs (vessel sharing agreements) and SCAs (slot charter agreements) • North Sea: 4 ro-ros • Baltic Sea: 2 ro-paxes Dry-cargo1 newbuilding price index Index • Channel: 1 day ferry ro-pax 225 • Passenger: decision on 4 ships for either 200 further life extension or purchase and rebuild of secondhand ships (new builds a 175 possibility beyond 2022) 150 125 • Financing of freight ferries and ro-paxes 100 can be ownership or BB-charter '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 22 22 Source: Clarksons Platou 1 Dry cargo includes containerships, multi purpose vessels, ro-ro and pure car carriers LOGISTICS Q1 LTM 2018 Logistics Division Business units & ROIC, Q1 LTM 2018 Revenue Nordic Continent Nordic Continent UK & Ireland EBIT UK & Ireland 21% 15% 8% 0% 50% 100% . 23 Logistics Division: Growing share of contract logistics Activity Nordic Continent UK & Ireland Door-door full & part • Scandinavia- • Continent- • Northern Ireland-UK loads (trailers, UK/Baltics/Continent Scandinavia/ • Ireland/UK-Spain containers & rail) UK/Ireland • UK domestic Contract logistics • Automotive, • Automotive, Germany- • Temperature Gothenburg UK, Belgium controlled, Scotland, England • Retail, Northern Ireland Paper shipping logistics • Norway-Continent/UK 24 Logistics Division is a key customer of the route network • Top 3 customer of Shipping Division NORDIC • 8% of total shipping volumes UK & • 10-20% volume IRELAND target on individual routes Logistics CONTINENT Division Invested DKK m Revenue EBIT capital ROIC, % Nordic Q1 LTM 2018 1,986 79 367 21.3 Q1 LTM 2017 1,631 49 317 15.2 Continent Q1 LTM 2018 2,182 74 382 15.5 Q1 LTM 2017 1,947 47 344 10.8 UK & Ireland Q1 LTM 2018 1,303 35 405 7.5 Q1 LTM 2017 1,500 61 420 12.3 25 LTM as per Q3 2014 HOW WE RUN DFDS .