FERRY MARKET AND STRATEGY 2016-2020
BALTIC FERRY MARKET. 2
The North/South transport axis is moving East The Polish market, with 38 M. inhabitants, and the Polish corridor constitutes an important part of a Baltic Sea based transport network. The passenger traffic between Poland and Scandinavia amounted to 1,1 M in 2013. The freight market is dominated by trucks with driver accompanied and amounted to 426 thousand lorries in 2013. 3
Seamotorway on South- West Baltic Sea and circumstances. Trelleborg Ystad 1. Intermodal connection between Swinoujście and Trelleborg based on rail transport. The project was born in 2011 and is currently being developed. 2. Extention of port infrastructure in Świnoujście Ferry Terminal area: construction of quay no. 1 for units 220-240 length reconstruction of ferry quays nr 5 and 6 for units 215 length and 12 m depth reconstruction and modernization of rail infrastructure development of infrastructure of FerryTerminal s warehouses and storage yards 4
Ferry traffic volumes world wide (source: Ship Pax Information) 2009 PAX CARS BUSES TRAILERS TRIPS Baltic Sea 220 776 576 84 505 530 261 222 7 834 425 3 871 588 North Sea 89 093 388 18 987 696 219 594 10 150 230 362 649 Mediterranean 433 861 663 35 614 388 100 639 8 615 770 791 146 American 298 015 700 74 284 949 80 653 880 402 1 358 932 Red Sea & Arabian Gulf 76 082 040 1 344 707 6 393 60 052 3 147 South East Asia 892 806 201 34 748 503 8 677 4 153 967 1 519 791 Pacific 31 726 069 946 198 137 465 863 98 974 2 042 361 637 250 431 971 677 315 32 160 709 8 006 227 2014 PAX CARS BUSES TRAILERS TRIPS Baltic Sea* 240 026 279 93 713 181 352 695 11 852 291* 3 030 687 North Sea 105 241 661 22 821 595 249 665 11 433 288 604 845 Mediterranean 459 740 740 37 234 402 203 096 9 692 010 935 520 American 304 875 975 74 785 789 41 240 1 021 758 1 483 439 Red Sea & Arabian Gulf 110 385 000 2 016 737-3 540 - South East Asia 935 887 658 29 101 682 5 151 5 521 884 1 515 016 Pacific 34 724 357 784 374 837 393 485 108 026 2 190 881 670 260 457 760 852 684 39 918 256 7 677 533 *Increase about 40% in trucks traffic on Baltic Sea 5
Long term forecast of traffic figures on the Świnoujście Ferry Terminal * YEAR PASSENGERS CARS BUSSES TRAILERS 2009 731 489 172 747 1 746 206 820 2010 782 026 183 488 1 791 252 846 2011 787 582 194 340 1 403 282 831 2012 798 891 201 797 1 178 292 736 2013 792 760 195 122 1 009 313 955 2014 824 000 209 500 766 345 667 2015 834 000 215 800 586 357 000 2016 852 000 222 900 406 377 000 2017 862 000 228 400 226 397 000 Forecast is based on: - Traffic figures for 2009-2014 - Regional economic situation - Competitive connection Gdynia - Karlskrona - Competitive connection Sasnitz Trelleborg - Competition from new operator TT-Line who opened a connection between Świnoujście and Trelleborg in January 2014 2018 877 000 235 500 226 418 000 2019 894 000 240 300 226 438 000 2020 902 000 246 200 226 459 000 *According to development of Ferry Terminal Świnoujście. 6
Baltic Sea ferry shipping market in 2014 Western corridor: Scandlines, DFDS Seaways, DFDS Torline, TT Line, Color Line, Mols Line, Strong competition the opening of Fehmarn Tunnel will close some of the services but there will be still open market for direct services to Sweden Middle corridor: Polferries, Unity Line, Stena Line, Bornholmstraffiken, TT-Line. Increasing importance with transport flow moving East at the same time Eastern corridor: Finnlines, TallinkSilja, Viking Line, DFDS, Transfennica, DG, Eckero Line, Increasing importance for transit flow from Eastern Europe 7
Świnoujście Ystad: - Polferries: 2 departures/day - Unity Line: 4 departures/day Świnoujście Trelleborg: - TT-Line: 10 departures/week - Unity Line: 3 departures/day Gdańsk - Nynashamn: - Polferries: 4 departures/week Ystad Trelleborg Karlskrona Nynashamn Gdynia Gdańsk Gdynia - Karlskrona: -Stena Line: 15 departures/week 8
Owner/ Operator Ferry Year of purchase Year of built/rebuilt Type of ferry Number of pax Length of loadline Polferries Baltivia 2006 1981/1989 ro-pax 250 1408 m Wawel 2004 1980/1989/2005 pax-ro 1000 1460 m Mazovia 2015 1996/2013/2015 pax-ro 1000 2620m Unity Line Polonia 1995 1995 pax-ro 1000 2173 m Skania 2008 1995/2008 pax-ro 1397 2135 m Wolin 2007 1986/2002 ro-pax 370 1732 m Gryf 2005 1990 ro-pax 180 1880 m Galileusz 2006 1992 ro-pax 160 1742 m Kopernik 2008 1977/1993 ro-pax 360 925 m Jan Śniadecki 1995 1989 ro-pax 57 1077 m TT-Line Nils Dacke 2014 1995 ro-pax 317 2400 m Tom Sawyer 2014 1995 ro-pax 317 2400 m 9
Owner/ Operator Ferry 2014 2015 Pax Personal cars Freight Pax Personal cars Freight Polferries Baltivia 40 594 18 156 23 102 40 683 19 312 27 316 Wawel (till 6.05.2015) Mazovia (from 15.06.2015) 128 984 52 754 35 543 32 181 15 016 10 815 - - - 74 755 30 603 26 418 Unity Line Polonia 148 954 58 238 45 166 160 940 62 306 45 175 Skania 139 690 60 221 39 931 145 621 62 196 38 103 Wolin 14 310 5 898 31 571 15 592 7 303 36 987 Gryf 6 140 2 840 39 850 8 532 4 184 39 873 Galileusz 6 195 2 893 39 147 10 200 4 960 41 883 Kopernik 2 987 1 396 28 033 4 860 2 105 28 427 Jan Śniadecki 884 442 16 433 1 250 648 16 732 TT-Line Nils Dacke 60 581 28 043 41 675 49 157 23 555 35 005 Tom Sawyer 5 268 3 530 5 216 21 300 10 205 15 170 10
2014 STENA LINE 41% 2013 POLFERRIES 30% TT-LINE 6% POLFERRIES 26% STENA LINE 40% UNITY LINE 29% UNITY LINE 28% STENA LINE 41% 2015 POLFERRIES 22% TT LINE 6% UNITY LINE 31% 11
2013 2014 STENA LINE 28% POLFERRIES 36% STENA LINE 27% POLFERRIES 31% TT LINE 6% UNITY LINE 36% UNITY LINE 36% STENA LINE 26% 2015 POLFERRIES 27% TT LINE 9% UNITY LINE 38% 12
2013 2014 STENA LINE 24% POLFERRIES 16% STENA LINE 25% POLFERRIES 14% TT LINE 10% UNITY LINE 60% 2015 UNITY LINE 51% STENA LINE 25% POLFERRIES 15% TT LINE 10% UNITY LINE 50% 13
Business environment situation and ratings - Ferry ro-ro traffic between Poland and Sweden recorded 5 % increase in the volume in 2015 year. - The South/North transport corridor is moving to East away from the crowded motorways. - Polish ports can attract transit-flow from emerging eastern economies. - Ferry transport enables carrying of all kind of goods, passengers and vehicles without any limits to the weight of the cargo and luggage, as it is rectricted in low - budget airline operators. 14
Polferries strategy 2016-2020 15
STRENGHTS Strong Polferries brand on the market Share in the market and recordbreaking financial results Solid scope of customers WEEKNESSES Old ferries 2 units for replacement as soon as possible Nonsufficient funds for the fleet renewal Well-skilled and experienced staff Good and wide offer for the clients OPPORTUNITIES Completed secttions of motorway A1 and express roads ( incl. S3 ) Movement of the traffic to the East - Świnoujście A few years of prosperity GDP>3-4% THREATS Strong competition from the other ferry operators Changing oil prices and fluctuating foreign exchange rates 16
Polferries fleet Ferry Year of purchase Year of build/rebuild Type of ferry Number of pax Length of loadline Route Baltivia** 2006 1981/1989 ro-pax 250 1408 m Świnoujście Ystad Wawel 2004 1980/1989/ 2005 pax-ro 1000 1460 m Świnoujście Ystad May 2015 Gdańsk Nynäshamn Mazovia* 2014 1996/2013/ 2015 pax-ro 1000 2620 m Świnoujście Ystad m/s Baltivia * In operation from June 2015 m/f Wawel m/f Mazovia ** Not enough capacity for passengers 17
1. Fleet renewal new building 2. Increase in cargo market share from 16% to 25% 3. Increase in passenger market share 4. Reducing of unit costs of freight transport 18
1. Bigger capacity for lorries 2. Price bargain offer attracts biggest forwarders and transport companies (the required allotments matched) - gain of 30 thousand units 3. Complementary service for cargo clients and the most suitable timetable 4. Complex offer for trailers 19
1. More space for passenger cars = more passengers on board 2. More cabins for passengers on Gdańsk Nynashamn line 3. Marketing activities to attract passengers, direct advertising, events, schools on board, internet actions 4. Round trip offers for groups, conferences etc. 20
Index Forecast 2016 Forecast 2017 Forecast 2018 Forecast 2019 Forecast 2020 Profitability rate 10,2 11,1 11,9 12,7 12,8 EBITDA 67 890 71 739 75 177 78 368 78 581 EBITDA rate 22,3 22,8 23,4 24,0 24,1 Financial results for 2017 offer possibility for dividend due to the shareholders. 21
Passengers Personal cars Freight units TT LINE 9% PŻB S.A. 39% TT LINE 9% PŻB S.A. 40% TT LINE 20% PŻB S.A. 25% UNITY LINE 52% UNITY LINE 51% UNITY LINE 55% 22
Dziękujemy Thank youza for your uwagę attention 23