Moving together
We strive to create strong partnerships with our customers by
serving them with care and passion, listening before making deci-
sions, doing what we say we’ll do, and by learning, developing, and
improving every day – in short, by moving together.
Following a period with significant expansion of the network, our
new strategy sets us on a path to unlock the value of the expanded
network through organic growth and focus on cash flow generation.
We are also moving to green. On land, we deploy one of the largest
fleet of e-trucks in Europe, and we aim to have six green ferries on
the water by 2030.
In this report you can learn more about what we do, business
trends, financial performance, progress on our green transition, as
well as on safety and our efforts to support diversity and inclusion.
And many, many other matters.
Welcome to our Annual Report 2023.
2 / 179
This report constitutes
DFDS’ Communication
on Progress to the UN
Global Compact. It covers
the DFDS Group’s ESG
activities for the financial
year 1 Jan to 31 Dec 2023.
Moving to green
Page 17
ESG review
Page 54
Ferry Division
Page 34
Financial statements
Consolidated financials
Income statement 88
Statement of comprehensive income 88
Balance sheet 89
Statement of changes in equity 90
Statement of cash flows 92
Notes 93
Parent company financials
Income statement 144
Statement of comprehensive income 144
Balance sheet 145
Statement of changes in equity 146
Statement of cash flows 148
Notes 149
Reports
Management statement 168
Independent Auditor's Reports 169
Other
Fleet list 173
Glossary 175
Definitions 176
DFDS' history 178
Management review
Introduction
We keep Europe moving 5
We are moving together towards 6
Chair and CEO letter 7
Key results 2023 9
Key figures - financials & ESG 10
Performance and outlook
Solid result achieved for 2023 12
Strategy 18
Business model 20
Driving the ESG transformation 22
Outlook 31
Divisions
Ferry Division 34
Logistics Division 41
Results
Financial review 49
ESG review 54
Corporate governance
Governance practices 59
Risks and risk management 62
Shareholders 68
Board of Directors 71
Executive Management Team 73
Remuneration Report summary 74
ESG data
ESG data and accounting policies 77
EU taxonomy 80
SASB Marine Transportation
Industry Standard 85
Task Force on Climate-Related
Financial Disclosures 86
DFDS Annual Report 2023 3 / 179
TN
PT
IT
CH
FR
ES
MAR
MAR
UK
SCO
IS
IE
AT
HU
HR
BA
ME
XK
ALB
BG
MKD
SL
GR TR
SK
CZ
PL
DE
BE
LU
NL
DK
SE
NO
FI
RU
EE
LV
LT
RU
BY
UA
RO
MLD
CS
66
Ferries
30
Ferry routes
18 carry only freight
12 carry freight & passengers
66
Logistics locations
including 35 warehouses
13,200
People
Ferry network → Logistics network →
We move goods in trailers
*
by ferry, road & rail
*and trailer equivalents
... and people in
cars & on foot
We keep
Europe moving
DFDS Annual Report 2023 Introduction 5 / 179
We will unlock value from the
expanded network through
a shift in focus to primarily
organic growth underpinned
by our enhanced network
capabilities
Joint letter from
Chair and CEO
From left to right
Claus V. Hemmingsen, Chair
Torben Carlsen, CEO
We successfully completed our Win23 strategy
in 2023 having significantly expanded and
strengthened our network over the past five
years. We also met the strategy’s financial
ambitions despite the challenging market
conditions, once again demonstrating the im-
portance of being able to adapt to changes in
macro, operating, and financial environments.
The shift in economic fundamentals that
began in 2022 continued in 2023 as growth
was held back by high inflation and rising
interest rates. The geopolitical tensions that
emerged in 2022 persisted in 2023, and unfor -
tunately look set to remain elevated in 2024.
Moreover, 2023 was the warmest year on
record so far for our planet, a poignant sign
of the need to reduce and ultimately elimi-
nate greenhouse gas emissions.
Throughout 2023 we adapted our operations
to the changing market conditions to deliver
on our promises to customers and to opti-
mise earnings as well as shareholder value.
We expanded resources devoted to de-
carbonisation in our organisation, fulfilled
our short-term emission reduction targets,
and further developed our green transition
pathway as part of the strategy update
Moving Together Towards 2030 launched
in December 2023.
Strategic perception is shifting
Priorities have shifted in the last two years.
Rising interest rates have in combination
with elevated uncertainty about future
growth levels increased focus on cash flow
generation and financial strength.
Moving Together
Towards 2030
from Win23
DFDS Annual Report 2023 Introduction 7 / 179
Transport market priorities have also devel-
oped in response to various disruptions as
well as the rising inflation and interest rates.
Although 2023 provided more normalised
conditions, supply chain resilience and
security remain important purchase crite-
ria. Large freight customers have growing
preferences for partnering with fewer and
larger transport and logistics providers.
Simultaneously, price remains an import-
ant purchase criterion which underscores
the need to pursue continuous operating
efficiency improvements and optimising
capacity utilisation.
Win23 strategy ambitions delivered
In the final year of the Win23 strategy, we
continued our network expansion strategy
and delivered EBITDA of DKK 5bn – the finan-
cial ambition set in 2019 for 2023. The ambi-
tion was achieved despite significant macro
headwinds demonstrating the resilience of our
combined ferry and logistics business model.
Our network now offers a scale and depth
that has increased our relevance for large
industrial customers and through the Win23
strategy period we have increased our
presence in high-growth areas like Türkiye
and latest North Africa. Our financials are
solid with leverage within our set policy of a
NIBD/EBITDA-multiple between 2.0-3.0x.
Moving Together Towards 2030 –
strategy update
In 2023, we reviewed and adapted our
strategy to our current position and to the
significant external changes. In Decem-
ber, we launched our updated strategy –
Moving Together Towards 2030 containing
a roadmap for unlocking the value from
our expanded network. ‘Moving Together’
reflects the importance we attach to col-
laborating and partnering. Not least when
it comes to succeeding with the green
energy transition.
We will unlock value from the expand-
ed network through a shift in focus to
primarily organic growth underpinned
by our enhanced network capabilities,
higher relevance for freight custom-
ers requiring bundled transport and
logistics solutions, and our increased
presence in high-growth markets.
The strategy is supported by five routes to
unlock value: Protect & Grow Profits, Stan-
dardise to Simplify, Digitise to Transform,
Moving to Green, and Be a Great Place to
Work. These are detailed on page 19 in the
annual report.
The strategy update also includes our
financial ambitions for the coming three
years, 2024-2026. We will increase our
focus on cash flow generation through an
annual DKK 1.5bn adjusted free cash flow
target. We aim to raise return on invested
capital to around 10%, and to deleverage
the capital structure to 2.5x by 2026.
Stable financial performance
and cash flow growth
In 2023, EBITDA increased 1% to DKK
5.0bn. A successful recovery of pas-
senger earnings and a positive impact
from logistics acquisitions offset lower
freight earnings that were reduced by
challenging market conditions and the
impact of the normalised oil price spread.
Demand, and hence volumes, declined
in most markets throughout the year
due to the high inflation and the rise in
interest rates. Moreover, freight ferry
earnings were negatively impacted by
an overcapacity situation on the Dover
Strait and the war in Ukraine that lowered
utilisation in our Baltic route network.
The return on invested capital (ROIC) was
7.6% at year-end compared to 8.7% in 2022.
The decrease was driven by the lower level
of freight earnings. The Adjusted free cash
flow increased to DKK 2.8bn, including a
cash inflow of DKK 1.5bn from the sale and
leaseback of three freight ferries.
Financial leverage, NIBD/EBITDA, was at
2.9x. A total of DKK 581m was distributed
to shareholders in 2023 consisting of a
dividend of DKK 281m and a share buyback
of DKK 300m.
We are committed to returning excess
capital to shareholders as stated in our
distribution policy and propose a total
shareholder distribution of DKK 600m in
2024 comprising a dividend of DKK 169m
and a share buyback of DKK 431m.
Moving forward in 2024
We approach the outlook for 2024 with
caution for particularly two reasons: Geo-
political tensions remain elevated, and it is
still uncertain whether Europe’s transition to
lower inflation levels will entail a hard or a
soft landing for the economy. Our base case
for 2024 is therefore a relatively flat market
environment for both freight and passengers.
Regardless of the adverse macro environ-
ment, we will focus on delivering reliable
and efficient services and solutions to our
customers, monitoring and adapting to
market changes, and particularly on un-
locking the value of our expanded network
and capabilities as we start to execute on
our new strategic and financial ambitions.
Thank you very much to all our colleagues
in DFDS. Challenges have been overcome
and adaptations have been numerous. Your
dedication and contributions delivered the
progress we achieved in 2023.
We would also like to extend our gratitude
to all our customers, partners, and stake-
holders for continued collaboration. To-
gether with you, and with the support of our
shareholders, we are excited to embark on
a new strategy period of which 2024 will be
the first year. Firm targets are set for 2026
as well as a clear pathway towards 2030.
DFDS Annual Report 2023 Introduction 8 / 179
EBITDA per division
DKK bn
Ferry Division, Freight
Logistics Division
Ferry Division, Passenger
Ferry Division, Freight
Non-allocated items
Logistics Division
Ferry Division, Passenger
Key results
2023
Revenue per division
DKK bn
CO
2
emissions own fleet
g CO
2
/ GT mile
Female ratio of managers
%
20
15
10
5
0
2023
2022
2021
5.0 6.04.03.02.01.00.0
20222021
2021
2022
2023
2023
302520151050
12.8
12.5
12.1
2022
2023
2021
14%
16%
18%
DFDS Annual Report 2023 Introduction 9 / 179
1 Applied exchange rate for
Euro as of 31 December
2023: 7.4510 (Average) and
7.4529 (End).
2
As from 2023 special items
are not presented separately
in the income statement and
accordingly, the comparative
figures for 2019-2022 have
been restated.
3 North Sea port logistics
activities have been
transferred from the Ferry
Division to the Logistics
Division per 1 January 2021.
2020 comparative figures
have been restated
accordingly, whereas 2019
comparative numbers are
not restated.
4 Accounting of rail activities in
Türkiye have changed in
2022 due to shift in the agent
principal relationship for the
customers. The comparative
figures have been restated
accordingly.
Definitions on page 176-177.
Key figures
DKK m
2023
EUR m 2023 2022 2021 2020 2019
Income statement
Revenue 3,665 27,304 26,873 18,279 14,310 16,798
– Ferry Division 2,214 16,493 16,831 12,216 9,784 12,403
– Logistics Division 1,623 12,096 11,423 7,155 5,301 5,116
– Non-allocated items and eliminations -172 -1,285 -1,382 -1,092 -776 -72 2
Operating profit before depreciation and
amortisation (EBITDA) 676 5,034 4,974 3,322 2,633 3,509
– Ferry Division 524 3,907 3,984 2,790 2,236 3,215
– Logistics Division 171 1,273 1,066 564 450 415
– Non-allocated items -20 -146 -76 -32 -53 -121
Operating profit before amortisation (EBITA) 336 2,504 2,603 1,446 835 1,736
Operating profit (EBIT) 312 2,326 2,468 1,348 741 1,650
Financial items, net -90 -673 -329 -278 -275 -278
Profit for the year 202 1,505 2,019 976 442 1,313
Capital
Total assets 4,679 34,873 34,084 30,721 27,006 26,863
Equity 1,867 13,918 13,135 11,554 10,600 10,356
Net-interest-bearing debt 1,971 14,689 14,109 13,481 11,361 11,954
Invested capital, end of period 3,891 28,996 27,554 25,369 22,121 22,476
Cash flows
Cash flows from operating activities 511 3,811 4,480 3,208 2,499 3,016
Cash flows from investing activities -154 -1,149 -2,989 -3,210 -1,618 -2,670
Free cash flow 357 2,662 1,491 -1 882 346
Adjusted free cash flow 111 2,773 825 1,000 294 -228
Unit 2023 2022 2021 2020 2019
Key operating and return ratios
Average number of employees FTE 13,191 11,510 8,874 8,213 8,367
Revenue growth % 1.6 47.0 27.7 -14.8 6.6
EBITDA margin % 18.4 18.5 18.2 18.4 20.9
EBIT margin % 8.5 9.2 7.4 5.2 9.8
Return on invested capital (ROIC) % 7.6 8.7 6.0 3.3 7.4
ROIC before acquisition intagibles (ROIC BAI)
% 10.4 11.7 8.0 4.5 9.7
Return on equity % 11.1 16.4 8.7 4.2 13.5
Key capital and per share ratios
Financial leverage times 2.9 2.8 3.8 4.3 3.4
Equity ratio % 39.9 38.5 37.6 39.3 38.6
Earnings per share (EPS) DKK 26.64 35.09 16.69 7.5 6 22.88
Dividend paid per share DKK 5.00 8.00 0 0 4.00
Number of shares, end of period '000 58,632 58,632 58,632 58,632 58,632
Share price DKK 223 256 349 275 325
ESG key figures
Scope 1 emissions (CO
2
e) 1,000 tonnes 2,556 2,697 2,544 2,014 2,253
Scope 2 emissions - location based (CO
2
e) 1,000 tonnes 12.1 7.9 6.9 6.0 7.3
Direct CO
2
e emissions (Scope 1+2) 1,000 tonnes 2,568 2,705 2,551 2,020 2,260
CO
2
e intensity kgCO
2
e/MDKK 94.4 100.7 139.5 141.2 134.6
Emissions per GT mile - Own fleet (CO
2
) gCO
2
12.1 12.5 12.8 13.4 13.9
Lost-time injury frequency (LTIF) - Sea
Incidents/mio. hrs.
3.8 4.5 4.3 4.1 4.5
Lost-time injury frequency (LTIF) - Land
Incidents/mio. hrs.
8.1 7.9 7.4 5.9 6.7
Women ratio - Total workforce % 23 24 24 23 25
Women ratio - Board of Directors % 33 33 33 33 33
DFDS Annual Report 2023 Introduction 10 / 179
was achieved by a new ferry schedule op-
timisation program and deployment of 90
e-trucks during the year.
Financial performance as measured
by the return on invested capital, ROIC,
decreased to 7.6% in 2023 reflecting
market headwinds as well as the signifi-
cant network investments to expand
and strengthen the network in line with
the Win23 strategy. A key short-term focus
area of the new strategy launched in
December 2023 is to unlock value over the
next three years. This includes a financial
ambition to raise ROIC to around 10%
by 2026 and to annually generate an
Adjusted free cash flow of around
DKK 1.5bn. The new strategy and finan cial
ambitions are described in more detail on
page 18-19.
We continued to expand and strengthen the
capabilities of our network in 2023 through
both acquisitions and investments in people,
digitisation, equipment, and warehousing
capacity. We also expanded our collabora-
tion with longstanding freight customers and
gained important new customer relationships.
2023 EBITDA of DKK 5.0bn was in line with
the Win23 strategy’s key financial ambition
of an EBITDA of DKK 5.0bn despite head-
winds in some of our markets. The recovery
in passenger volumes and higher spending
led to a strong passenger result. Freight vol-
umes and earnings were on the other hand
more exposed to Europe’s economic slow-
down in 2023 and consequently decreased.
We emerged from 2023 ahead of the year’s
short-term green transition targets. This
Macro events continued
to impact transport markets
In 2023, freight volumes remained robust in
many trade lanes or corridors even though
transport markets in general continued to be
adversely impacted by external macro events:
Continued impact from the war in Ukraine
The war in Ukraine continued to depress
activity levels in the Baltic Sea region, espe-
cially freight volumes on both sea and land.
This also lowered ferry capacity utilisation
levels and increased competition in certain
ferry corridors of the Baltic Sea.
Economic slowdown triggered
by higher inflation and interest rates
Inflation was boosted by among other things
the spike in energy prices in 2022 caused by
the war in Ukraine. Through 2023, the over-
all EU inflation decreased from around 9%
to 3% while interest rates increased through
the year. This combination decreased de-
mand from both consumers and businesses
in key European markets which led to a
stagnating market environment, especially
in the second half of 2023. Passenger ferry
demand was in general less impacted than
freight demand and recovered well through
the year.
The lower freight demand led to overcapacity
in European haulage markets towards mid-
year and margin pressure in the transport sec-
tor intensified through the second half-year as
freight customers increased tender activity.
Trade volumes between Türkiye and Europe
faced headwind from the Turkish earth-
→ Win23 EBITDA target of
DKK 5bn achieved
→ Freight earnings reduced
by lower volumes
→ Passenger earnings improved
by volume recovery and
higher spending
→ Green transition ahead of
short-term targets
→ Network expanded and
strengthened by Logistics
acquisitions
→ New strategy and financial
ambitions launched
Solid result
achieved for 2023
DFDS Annual Report 2023 Performance and outlook 12 / 179
and eastern Europe, are forecast to gain
market share in the coming years.
Duty-free mitigated Dover
Strait overcapacity
Duty-free sales continued to grow in
2023 as passenger volumes recovered
and awareness of duty-free cost savings
increased. This mitigated a continued
negative impact from overcapacity on the
Dover Strait caused by the entry of a third
ferry operator from mid-2021.
Passenger recovery almost complete
Passenger volumes in the first half-year of
2023 were boosted compared to 2022 as
Covid-19 travel restrictions were gradually
removed in Europe towards the end of Q1
and the first part of Q2 in 2022. Overseas
ferry passengers started to return to Europe
in 2022 but a more complete recovery
is only expected to take place in 2024.
For DFDS, this will primarily entail higher
passenger volumes on the route between
Norway and Denmark.
Key financial results of 2023
Revenue increased 1.6% to DKK 27,304m
compared to 2022 which was slight-
quake in Q1 2023 and from the Turkish elec-
tion in Q2 2023 that lowered activity. The
economic slowdown in Europe, particularly
in Germany that is a key market for Turkish
trade, also lowered volumes. In the second
half-year of 2023, Türkiye introduced inter-
est rate increases to curb inflation, which
as intended dampened domestic demand.
Oil price spreads began approaching histo-
rical levels at the end of Q1 2023 following
a considerable widening in the second half-
year of 2022. The financial return on scrubber
installations thus normalised in 2023.
Nearshoring trend underpinned
by geopolitical events
The nearshoring trend continued to be un-
derpinned by elevated global and regional
geopolitical tensions in 2023. Nearshoring
of supply chains closer to end markets
to improve stability is done in mainly two
ways: by raising inventory levels in loca-
tions close to end markets, and by moving
more manufacturing to facilities closer to
end markets.
Demand for warehousing solutions in
Europe is therefore expected to remain firm
going forward, and cost competitive regions
or countries such as northern Africa, Türkiye,
Passenger volumes
were boosted by the
continued recovery in
travel markets
DFDS Annual Report 2023 Performance and outlook 13 / 179
• 15 November: Outlook firmed up to
DKK 4.9-5.2bn by mainly higher than
expected passenger earnings.
On a divisional level, the Ferry Division’s
EBITDA of DKK 3,907m was 1.9% below
2022 as higher passenger earnings were
offset by lower freight earnings. The Logis-
tics Division’s EBITDA increased 19.5% to
DKK 1,273m driven by the strategic acqui-
sition of McBurney Transport Group and
several bolt-on acquisitions.
The adjusted free cash flow (FCFE) in 2023
was DKK 2,773m which included DKK 115m
of net investments comprising operating
investments of DKK 1,581m and a net cash
inflow of DKK 1,466m from the sale and
leaseback of three freight ferries.
Financial leverage, measured by the ratio
of net interest-bearing debt (NIBD) to
operating profit (EBITDA), was increased
slightly to 2.9 from 2.8 in 2022. The equity
ratio was 40% at year-end 2023 up from
39% in 2022.
The average number of full-time employees
(FTE) increased 14.6% to 13,191 in 2023
mainly due to acquisitions. The total head-
count was 13,546 at the end of 2023.
ly above the revenue outlook for 2023,
announced 9 February 2023, to remain on
level with 2022. The revenue increase was
driven by higher passenger revenue and a
positive impact from acquisitions as freight
revenue was lowered by declining volumes
and a considerable decrease in revenue
from bunker surcharges and other energy
related surcharges compared to 2022.
The operating profit (EBITDA) increased
1.2% to DKK 5,034m in 2023 compared to
2022 as higher passenger earnings and a
positive impact from logistics acquisitions
were partly offset by lower freight earnings.
The latter was reduced by a decline in vol-
umes, including impacts from overcapacity
situations on the Dover Strait and the Baltic
Sea, as well as a negative impact from low-
er oil price spreads compared to 2022.
The outlook for EBITDA developed as
follows during 2023:
• 9 February: Outlook range of
DKK 4.5-5.0bn announced
• 14 August: Outlook range raised to
DKK 4.8-5.2bn following better than
expected first half-year financial
performance
a major Turkish transport and logistics
company. Such a combination of ferry
and logistics activities in the Mediterra-
nean network would mirror DFDS’ proven
northern European business model.
Asset ownership lowered by sale and
leaseback of three freight ferries
On 17 October 2023, DFDS entered into an
agreement with Navigare Capital to sell
and leaseback three freight ferries for a
total sales price of DKK 1.5bn.
Reliability and customer service levels are
upheld by retaining control of the assets.
The leasing period is five years starting
Major events in 2023
A quarterly overview of the year’s major
events is provided on page 16. The most
important of these actions were:
Turkish competition clearance
obtained for possible transaction
On 28 July 2023, DFDS obtained com-
petition clearance for a possible ac-
quisition of Ekol Lo gistics’ international
road haulage activities. The filing was
submitted to the Turkish Competition
Authority (TCA) in October 2022. The filing
was made as part of a strategic dia-
logue between DFDS and Ekol Logistics,
DFDS Group, key financial figures
DKK m 2023 2022 2021
Revenue , , ,
EBITDA 5,034 4,974 3,322
EBIT , , ,
Profit before tax , , ,
Profit for the period , ,
Adjusted free cash flow, FCFE , ,
Invested capital, end of year , , ,
Net interest-bearing debt/EBITDA, times . . .
Return on invested capital (ROIC), % . . .
Average number of employees, FTE , , ,
2%
Revenue up
to DKK 27.3bn
1%
EBITDA up
to DKK 5.0bn
7.6 %
ROIC
40%
Equity ratio
DFDS Annual Report 2023 Performance and outlook 14 / 179
• McBurney Transport Group: Transport of
cold chain and dry goods in trailers by
road and ferry between the island of Ire-
land and the UK. Warehousing, distribu-
tion, and other logistics services are also
provided. Complements and expands ex-
isting networks in above regions. Annual
revenue 2022: DKK 1.3bn. Consolidation
date: 28 February 2023
• D.R. MacLeod: Scottish provider of road
transport for primarily cold chain goods.
Expands existing Scottish transport
network to Western Scotland. Annual
revenue 2022: DKK 100m. Consolidation
date: 22 May 2023
• Lundby Åkeriet: Swedish provider of road
transport around mainly Gothenburg.
Complements existing network. Annual
revenue 2022: DKK 55m. Consolidation
date: 1 September 2023
• Estron Group: Dutch provider of road
transport and warehousing based in
Rotterdam. Expands part-load capabili-
ties and increases trailer ferry to the UK.
Annual revenue DKK 370m. Consolidation
date: 11 September 2023
• FRS Iberia/Maroc: Short-sea ferry
operator on the Strait of Gibraltar
with three routes connecting Spain
and Morocco. Expands network to high-
growth region. Annual revenue 2023:
DKK 1.0bn. Consolidation date: 10
January 2024
Major events 2024
On 10 January 2024, DFDS announced
the closing of the acquisition of FRS
Iberia/Maroc.
On 9 February 2024, a share buyback of
up to DKK 431m under the Safe Harbour
rules was announced. The buyback start-
ed on 12 February 2023 and runs until 31
December 2024.
On 16 February 2024, DFDS awarded
103,780 restricted stock units (RSU) and
444,804 share options to the Executive
Board and a number of key employees.
The theoretical value of the awards is
DKK 37.2m calculated according to the
Black-Scholes model.
from the day of delivery. The agreement
includes a right of first refusal to purchase
the ferries during the leasing period. The
three ferries are Flandria Seaways, Hum-
bria Seaways, and Scandia Seaways built
in 2020/2020/2021, respectively.
The transaction entailed a net reduction
of invested capital by DKK 0.6bn and a
decrease of net interest-bearing debt
(NIBD) by DKK 0.7bn. Financial leverage
as measured by NIBD/EBITDA decreased
0.15x. The financial gain from the sale was
DKK 95m.
CFO steps down
Karina Deacon is stepping down from her
position as CFO and member of DFDS’
Executive Board to pursue a non-executive
career. Karina Deacon will remain in her
position until no later than end of June
2024 to ensure continuity and a smooth
transition to the new CFO.
Acquisitions expanded
customer offerings and scale
In 2023, five acquisitions were
completed or agreed:
Strait of Gibraltar
became a new ferry
business area through
the acquisition of FRS
Iberia/Maroc agreed
in 2023
DFDS Annual Report 2023 Performance and outlook 15 / 179
2023 major events
Q1
•
Acquisition of McBurney
Transport Group completed
•
Nordic logistics partner
for Miele
•
Issue of NOK 1.5bn senior
unsecured bonds
•
DKK 300m share
buyback completed
Q2
•
Scottish haulier
D.R. MacLeod acquired
•
5-year partnership agreement en-
tered into with Danish Crown
•
First biofuel trial on freight ferry
Acacia Seaways completed
•
Freight ferry route Izmir-Sète
replaces Istanbul-Tarragona
•
Implementation of actions to
protect sperm whales in waters
off Southern Greece
Q3
•
Acquisition of Estron
Group completed
•
Competition clearance obtained in
Türkiye ahead of possible acquisition
of Ekol Logistics
•
Agreement to acquire FRS
Iberia/Maroc announced
•
Swedish haulier Lundby
Åkeriet acquired
•
Partnership with Volvo Trucks and
Copenhagen Pride making the 2023
parade 100% electric
•
Decision to launch the DFDS
Female Cadet Program to
increase gender diversity across
the sea-based organisation
Q4
•
Moving Together Towards 2030
strategy launched at Capital
Markets Day in Copenhagen
•
Karina Deacon, CFO to step down
n 2024 announced
•
Sale and leaseback of three freight
ferries lowers asset ownership share
and investment outlook
•
Bruges logistics location closed;
activities moved to other locations
•
Calais-Tilbury and Izmir-Sète freight
ferry (RoRo) routes closed
•
90 e-trucks deployed during 2023
DFDS Annual Report 2023 Performance and outlook 16 / 179
Battery
containers
Electric
truck
Hydrogen
truck
Electric terminal
equipment
Charging
station
Charging hub
shore power
Ammonia
ferry
Electric
barge
Renewable
energy production
Warehouse
electrification
Moving to electrification
of terminals & warehousing
DFDS has the ambition to decarbonise its operations as soon
as it is feasible and has set minimum targets for decarboni-
sation of vessel operations, road transport and warehousing.
Moving Together Towards 2030
Moving to Green
For road transport and warehousing, we have targets as follows:
For vessel operations, we have targets as follows:
By 2030
By 2050
45% intensity reduction in CO
2
Net zero GHG
By 2030
By 2050
50% absolute reduction in CO
2
e
Net zero GHG
75% intensity reduction in CO
2
e
Net zero GHG
DFDS Annual Report 2023 Performance and outlook 17 / 179
creation of a customs orga nisation from the
ground with more than 200 employees.
The expanded network and capability
up grades have enhanced our customer rele-
vance and ability to engage in more extensive
customer partnerships with manufacturing
companies, food pro ducers, and retailers.
Win23’s key financial ambitions were
achieved already in 2022, and again in
2023, as the revenue of DKK 27bn ex ceeded
the ambition of DKK 25bn and the EBITDA
of DKK 5.0bn was in line with the ambition.
Unlocking value
Today, our network combines ferry, road,
and rail transport with complementary and
related logistics solutions.
Following a period with significant expansion
of the ferry and logistics network driven by the
Win23 strategy launched in 2019, the strate-
gic focus is shifting to unlocking value through
organic growth and to the green transition.
Network significantly
expanded by Win23
A key objective of the Win23 strategy was
to expand geographical coverage of the
network as well as the range of offered
logistics solutions.
The expansion was achieved through both
acquisitions and asset investments, primar-
ily in ferry new-buildings and warehouse fa-
cilities. In addition, organisational capabili-
ties to provide logistics solutions have been
strengthened and developed, including the
→ Organic growth focus to unlock
value from expanded network
→ Green transition ambition of six
green ferries on the water by 2030
→ Financial ambitions 2024-2026
→ Increase ROIC to around 10%
by 2026
→ Annual Adjusted Free Cash
Flow of around DKK 1.5bn
→ Financial leverage, NIBD/
EBITDA, of 2.5x by 2026
Moving Together
Towards 2030
Distribution
policy is
unchanged to
return excess
capital to
shareholders
through a mix
of dividend and
share buybacks
DFDS Annual Report 2023 Performance and outlook 18 / 179
markets. Enhance competitive cost base
and capacity utilisation focus.
Standardise to Simplify: Standardise
operating procedures across our network
to reduce complexity, enable growth and
faster response to market developments.
Reduce cost to serve through higher oper-
ating efficiency.
Digitise to Transform: Further develop and
grow self-service customer options. Provide
more transparency and green data to
enable flow optimisations. Automate port
terminal operations, deploy AI to amongst
other things enhance planning and predic-
tion capabilities for sea and land transport.
Future-proof tech platform to adopt new tech-
nologies faster and offer easier connectivity.
Moving to Green: Achieve short-term
climate plan targets through the Every
Minute Counts ferry scheduling program
and technical upgrades. Electrification of
port terminal and warehouse operations.
Decarbonise trucking by switching to biofu-
el and battery driven trucks. Prepare green
ferry newbuilding program and continue to
develop partnerships to increase supply of
green fuels.
The newbuilding program is contingent
on availability of green fuels and timing
is therefore subject to some uncertainty.
The 2030 target of a 45% reduction in ferry
emission intensity for the existing fleet is
unchanged. The baseline for the emission
reduction target is 2008.
The target for reduction of land emission
intensity is 75% which will be achieved
through electrification of trucks, port termi-
nals, and warehouses supported by biofuel
and hydrogen trucks. The baseline for the
emission reduction target is 2022 due to
insufficient data in previous years.
The ambition to become a net zero compa-
ny by 2050 is unchanged.
Five strategy routes
Five routes will be pursued to drive strategy
execution and reach financial targets.
Protect & Grow Profits: Organic growth
focus driven by expanded product range
and bundling of products to meet customer
demand. Benefit from broader geograph-
ical network and access to high-growth
Be a Great Place to Work: Safety First
program rollout. Adapt to new expectations
among employees and provide engaging
leadership. Promote diversity, equity, and
inclusion among managers as well as office
and non-office colleagues.
Target ambitions towards 2026 and 2030
Target ambitions have been set for a three-
year period as follows:
Free Cash Flow: The ambition is to annual-
ly generate an Adjusted free cash flow of
around DKK 1.5bn.
Capex: Operating capex is expected to
amount to DKK 1.5-2.0bn annually through
2024-2026, including green capex for ferry
and land installations to reduce emissions.
In 2026, the newbuilding program for
green ferries is expected to commence
with capex investments of around DKK
0.5bn. In the following years, 2027-
2030, green ferry capex is expected to
amount to around DKK 1.75bn annually.
ROIC: The ambition is to raise the return
on invested capital (ROIC) to around 10%
by 2026 from the current level of just
below 8%.
Financial leverage: The ambition is to lower
financial leverage, NIBD/EBITDA, to 2.5x by
the end of 2026. This will be supported by
the focus on organic growth and reductions
in the asset ownership share. The overall
target range of 2-3x is unchanged.
Capital distribution: Distribution policy
is unchanged to return excess capital to
shareholders through a mix of dividend
and share buybacks. The starting point for
determining the level of capital distribution
to shareholders is the current and expected
future financial leverage, NIBD/EBITDA.
The ferry network carries both freight and
passengers, operates own port terminals in
our most important hubs, and provides rail
transport from select ports.
We leverage the ferry network by combining
road and ferry transport to provide door-
door transports (FTL/LTL) across Europe.
The most important logistics products now
offered are contract logistics, including dry
and cold warehousing, customs services,
freight forwarding, packaging, and control
tower solutions.
Towards 2030, focus will shift to unlocking
the value of the expanded network by accel-
erating organic growth through increased
presence to high-growth markets, enhanced
network capabilities, and increased rel-
evance for freight customers demanding
bundled transport and logistics solutions.
Green transition
The green transition pathway has been
firmed up with the ambition to have six
green ferries in operation by the end of
2030. The newbuilding program for green
ferries is expected to commence in 2026.
Be a great
place to work
Digitise
to transform
Protect &
grow profits
Standardise
to simplify
Moving
to green
Five strategy routes
DFDS Annual Report 2023 Performance and outlook 19 / 179
Value creation
Facilitating business and
trade by transporting goods
Creation of stable jobs and
safe workplaces
Capital distribution
to shareholders
Proactive driver of green
transformation
Provider of a vital
infrastructure of ferry routes
Connecting people in countries
and regions separated by sea
Ferry
Freight routes
Combined freight and
passenger routes
Port terminal
operations
Road & Rail
Full-loads, FTL
Part-loads, LTL
Rail
Logistics Solutions
Contract logistics /
warehousing
Customs
Freight forwarding
Packaging
Control towers
We do ferry, road & rail transport
and complementary logistics solutions
Resources
People
Truck drivers and
warehouse staff
Seafarers and port
terminal staff
Digital impacters
Office challengers
Transport equipment
and facilities
Ferries
Trucks and trailers
Warehouses and
distribution centres
Energy – fossil and
sustainable fuels
Financing
– equity and loans
Business model
DFDS Annual Report 2023 Performance and outlook 20 / 179
Our greenhouse gas
reduction strategy
1 Scopes 1 & 2, WtW CO
2
e reduction from 2022 baseline. Percentage intensity depends on growth rate
2 Scope 1, TtW CO
2
reduction from 2008 baseline
-75 %
-45%
2030 pathway for vessels
Indicative breakdown of engine types and fuels.
Actual percentages will vary depending on availability of fuels, technologies and subsidies in different markets.
The liquid fuel green vessels all run on 30% MDO/MGO as pilot fuel. The electric RoPax are calculated as 100% electric.
Not including newly acquired FRS vessels.
2008 2023 2030
Switching diesel to HVO Battery electric trucks H fuel cell electric trucks
76.1
17.50 12.21
WtW CO
2
e intensity
gCO
2
e/tonnes kilometre
TtW CO
2
intensity
gCO
2
/ Gross Tonnes*Nautical mile
2022 2030
Every Minute
Counts
Technical
upgrades
2030 pathway for road transport
23.9
28.5
5.2
18.5
0.61
1.13
Tonnage plan
incl. 6 new ferries
9.60
1.48
2030 targets
2050 = Net zero
45% reduction
in CO
2
intensity
from ferries
75% reduction in
CO
2
e intensity from
road transport,
terminals &
warehousing
Diesel 10%
HVO 60%
Electricity 25%
H 5%
Diesel 96%
HVO 4%
DFDS Annual Report 2023 Performance and outlook 21 / 179
Five UN Sustainable
Development Goals
are material to our
ESG strategy
Environment
Social
Governance
DFDS Annual Report 2023 Performance and outlook 22 / 179
Input Expectations Assessment Output
Customer
engagement
Employee
feedback
Interaction
with investors
Regulators
Dialogue
with NGOs
ESG analysts
Climate
reports
Market
monitoring
Customers
We have an impact on our customers and they are
expecting us to provide reliable and efficient services.
Simultaneously, new expectations regarding both
environmental and social elements are growing.
Employees
As a business, we have large impact on our employees.
DFDS is expected to provide a safe working environment,
ensuring wellbeing and a fair living wage.
Investors
Our investors' expectations are growing, concerning
financial, social, and environmental elements.
Regulators
DFDS has a broad geographical reach, and we are
expected to follow all regulatory requirements
Civil Society
Our activities have an impact on civil society. The
expectations from civil society regarding business
ethics are growing, and we as a company are
expected to operate in a responsible way.
Social & Environmental
materiality
DFDS has a responsibility
to reduce all significant
negative aspects related to
our operations, and to further
increase positive impacts on
all stakeholders.
Financial Materiality
Environmental, social,
and governmental ele-
ments can have signif-
icant impact on DFDS'
activities and strategies.
Social
Health, safety and injury prevention
Diversity and inclusion
Responsible employer
Governance
Citizenship
Responsible sourcing
Incentives management
Business ethics
Data ethics
Environmental
GHG emissions
Climate governance management
Local environmental
impact & circularity
The materiality assessment is validated by the
Executive Management Team and the Board of Directors.
Materiality assessment
DFDS Annual Report 2023 Performance and outlook 23 / 179
DFDS Annual Report 2023 Performance and outlook 24 / 179
Biodiversity
Focus areas for 2024
2
Define a Group Biodi versity
Strategy and...
3
...introduce biodiversity conside-
rations in key business decisions
4
Drive awareness internally and
across the industry
1
Understand and map impact
across the value chain
DFDS Annual Report 2023 Performance and outlook 25 / 179
Green transition
partnerships
→ Clean Shipping Alliance
→ Copenhagen Infrastructure
Partners (CIP)
→ European Clean Trucking
Alliance (ECTA)
→ European Sustainable
Shipping Forum
→ Getting to Zero Coalition
→ Green Corridor DK-UK
→ Green Ship of the Future
→ Hydrogen Europe
→ Interferry
→ Mærsk McKinney Møller Centre
for Zero Carbon Shipping
→ Smart Freight Centre (SFC)
DFDS Annual Report 2023 Performance and outlook 26 / 179
Moving Together Towards 2030
A Great Place to Work
People centred culture
to drive engagement
Engaging leaders
A Great Place
to Work
Engaged employees
We see leaders as role models. They
are key in bringing our corporate values
to life and in setting the strategic direc-
tion for our people.
We want leaders to cultivate a safe
and inclusive workplace. We support
this through clear safety procedures,
our code of conduct and our feedback
culture.
We empower leaders with tools and
training to drive performance and
engagement and ensure personal
development plans with the people in
their teams.
We expect leaders to support, promote
and collaborate on the digitalisation
and transformation of DFDS, to ensure
a strong position in the future – for DFDS
and for our people.
We believe our employees are our most
importantasset. When ouremploy-
ees areengaged and feel as a part of
something bigger theywill prosper – and
so will DFDS.
We foster a supportive and inclusive
workplace, where diverse teams and
engaging leaders secure high innova-
tion and motivation for all employees.
We enable employees to be their
best – a best that is nurtured through
feedback, personal development plans
and an inclusive culture.
We encourage employees to play their
part - to be proactive, speak up and
take ownership of their personal growth
and the culture in DFDS.
Workplace with
engaging leaders
Safe and
healthy workplace
Diverse and
inclusive workplace
DFDS Annual Report 2023 Performance and outlook 27 / 179
45%
Women
36%
Women
49%
Women
51%
Men
51%
Men
56%
Men
55%
Men
64%
Men
55%
Men
64%
Men
45%
Women
36%
Women
44%
Women
49%
Women
< 3 years
31%
8-12 years
12%
3-8 years
37%
> 12 years
20%
Diversity lens - Seniority
Office based employees divided by seniority and gender
Diversity lens - Age
Office based employees divided by age and gender
30-50 y/o
56%
< 30 y/o
22%
> 50 y/o
22%
DFDS Annual Report 2023 Performance and outlook 28 / 179
DFDS Annual Report 2023 Performance and outlook 29 / 179
Our key policies include
→ Code of Conduct
→ Labour Code of Conduct
→ Diversity, Equity & Inclusion Policy
→ Health & Safety Policy
→ Data Ethics Policy
→ Supplier Code of Conduct
→ Climate & Environment Policy
→ Anti-Slavery and Human
Trafficking Statement
→ Group Tax Policy
→ Human Rights Policy
DFDS Annual Report 2023 Performance and outlook 30 / 179
Mediterranean
freight volumes
are expected to
regain some
growth momen-
tum in 2024
of living remains elevated by the increase in
interest rates. Inflation is expected to ease
during the year and employment levels are
resilient which could support growth in con-
sumption. The slight rebound is expected to
pick up through the year and activity levels
are likely to be weaker in the first half-year
than in the second half-year. Growth in
northern Europe, including Germany and the
UK, is expected to be lower than in southern
Europe. Türkiye’s expected economic growth
is expected to be supported by a rebound
in exports as measures to curb inflation are
likely to hold back domestic demand.
Key freight outlook assumptions for 2024
Freight market volumes are in northern
Europe overall expected to be flattish with
a possible volume decrease in the first half-
year balanced by higher volumes in the sec-
ond half-year. Rates are targeted to reflect
inflation and cost levels, but demand levels
and competitive dynamics are also likely to
impact rate levels.
Mediterranean freight volumes are expected
to regain some growth momentum in 2024
following disruptions in 2023 from an earth-
quake and a prolonged election period.
Nearshoring of supply chains closer to
European end markets is also expected to
support volume growth.
The war in Ukraine is assumed to continue
to stall freight volume growth in the Baltic
region in 2024.
Outlook visibility for 2024 is clouded by an
elevated level of financial uncertainty owing
to continued high inflation and interest rates
as well as geopolitical tensions that may or
may not result in events which could further
impact economic activity levels in and
around Europe.
The outlook for 2024 builds on multiple
assumptions and may therefore change
significantly as the year progresses.
General market growth prospects
The current consensus 2024 outlook for
Europe’s and Türkiye’s GDP-growth (Gross
Domestic Product) is 0.5% and 2.9%,
respectively (Source: Thomson Reuters).
Europe’s economic growth in 2024 is ex-
pected to only rebound slightly as the cost
Outlook
Outlook 2024
DKK m Outlook 2024 2023
Revenue growth -% ,
EBIT 2,000-2,400 2,326
Per division:
Ferry Division ,-, ,
Logistics Division -
Non-allocated items - -
Capital expenditure (Capex) -, -
Types:
Operating -, -,
Ferries: sale & purchase and new-buildings 0 1,466
Adjusted free cash flow Around , ,
DFDS Annual Report 2023 Performance and outlook 31 / 179
smaller positive impact from a continued
recovery in the number of overseas passen-
gers. The integration of FRS Iberia/Maroc
is in addition expected to add around 1.3m
passengers in 2024.
Revenue outlook
The Group’s revenue is expected to grow by
5-8% compared to 2023 driven by a mix of
organic growth and revenue from acqui-
sitions completed during 2023 and in the
beginning of 2024.
The Ferry Division’s revenue is expected to
be increased by primarily the addition of
FRS Iberia/Maroc and the introduction of
ETS surcharges that will be passed through
to both freight customers and passengers.
Organic volume and price growth is ex-
pected to be offset by lower revenue from
bunker surcharges.
The Logistics Division’s revenue is expected
to be increased by a full-year impact
of acquisitions completed in 2023 and
organic growth.
Earnings outlook - EBIT
Based on the above assumptions, the
Group’s EBIT is expected to be within a
range of DKK 2.0-2.4bn (2023: DKK 2.3bn).
In comparison to 2023, EBIT will in 2024
be negatively impacted by several one-off
items reported in 2023. The net bunker
cost will be higher in the first half-year due
to a positive earnings impact in 2023 from
elevated oil price spreads and related
hedging. Passenger earnings were in Q3
increased by the reversal of a provision re-
lated to Covid-19. The sale and leaseback
of three freight ferries in Q4 2023 entailed a
one-off gain of DKK 95m and will moreover
increase depreciation in 2024. The total
EBIT impact of the above items is around
DKK -300m.
See outlook table for divisional split.
Capital expenditure (Capex)
Operating capex, i.e. excluding acquisitions
and other transactions, is expected to
amount to around DKK 1.75bn in 2024. No
purchases of new or second-hand ferries
are expected.
Adjusted free cash flow
The Adjusted free cash flow is expected to
be around DKK 1.5bn in 2024.
Acquisitions
The acquisition of FRS Iberia/Maroc was
completed on 10 January 2024.
be reported as part of the Ferry Division’s
passenger result that includes three other
business areas with passenger activities –
Passenger, Channel, and Baltic Sea.
Organic passenger volume growth is
expected to be positive in 2024 driven
by mainly higher Channel volumes and a
Various risks and uncertainties
pertain to the outlook
The most important among these are
possible major changes in the demand
for ferry services – freight and passengers
– and logistics solutions.
Such demand is to a large extent linked
to the level of economic activity and
trade in primarily Europe, especially
northern Europe, and in particular the UK,
as well as adjacent regions, particularly
Türkiye and northern Africa.
Demand can also be impacted by com-
petitor actions, supply chain disruptions,
and extraordinary events such as virus
outbreaks and geopolitical instability.
The outlook can moreover be impacted
by political changes, first and foremost
within the EU and Türkiye. Brexit, the
trade agreement that came into eect on
1 January 2021 between the EU and the
UK, is yet to be fully implemented and its
possible impact on trade therefore still
constitutes a risk.
Changes in economic variables,
especially oil prices, inflation,
interest rates, and exchange rates,
can furthermore impact earnings.
Future financial results may therefore dier
significantly from outlook expectations.
Margin pressure in transport markets is
expected to continue in 2024 driven by over-
capacity in haulage markets, especially in
the first half-year.
Key passenger outlook assumptions for 2024
Due to FRS Iberia/Maroc’s overweight of
passenger revenue, the new activity will
DFDS Annual Report 2023 Performance and outlook 32 / 179
The operating performance in 2023 of the
route network, including port terminals, con-
tinued to deliver on reliability, frequency, and
capacity that are crucial for our freight cus-
tomers: forwarders, hauliers, and industrials.
The two largest freight ferry business areas,
North Sea and Mediterranean, delivered re-
sults on level with 2022 despite challenging
market conditions as freight volumes were
overall decreased in 2023 by the economic
slowdown in Europe. Another highlight of
2023 was a record result for the passenger
activities achieved on the back of a contin-
ued recovery in travel markets.
Market conditions in the Baltic Sea contin-
ued to be negatively impacted by the war
in Ukraine and the overcapacity situation
on the Dover Strait likewise continued.
Results for both areas were lowered by
the circumstances.
Ferry emission intensity was further reduced
by 5.4% in 2023 driven by incremental vessel
upgrades and the schedule optimisation
program Every Minute Counts focused on
reducing turnaround time in port terminals
and updated schedules enabling lower
speed, and reduced fuel consumption. The
first commercial products were launched
allowing customers to purchase a certified
Scope 3 CO
2
e reductions.
Financial performance
The Ferry Division’s revenue decreased
2.0% to DKK 16,493m but increased 6.1%
adjusted for bunker surcharges compared
→ Passenger earnings lifted
by continued travel recovery
→ Freight earnings lowered
by economic slowdown
→ Competition increased
by overcapacity on the Dover
Strait and the Baltic Sea
→ Negative earnings impact
from decline in oil price spreads
from spike in 2022
→ Emission intensity reduced 5%
as short-term actions take effect
Ferry
Division
16.5bn
Revenue
decreased 2% to DKK
3.9bn
EBITDA
decreased 2% to DKK
6,546
Ferry people
(FTE)
Head of division
Mathieu Girardin
Business areas
North Sea / Mediterranean /
Channel / Baltic Sea /
Passenger / Strait of Gibraltar*
*Part of DFDS from January 2024
DFDS Annual Report 2023 Divisions 34 / 179
TN
PT
IT
CH
FR
ES
MAR
MAR
UK
SCO
IS
IE
AT
HU
HR
BA
ME
XK
ALB
BG
MKD
SL
GR TR
SK
CZ
PL
DE
BE
LU
NL
DK
SE
NO
FI
RU
EE
LV
LT
RU
BY
UA
RO
MLD
CS
Vilnius
Trieste
Sète
Wels
Nuremberg
Bettemburg
Cologne
Moss
Oslo
Larvik
Brevik
Kristiansand
Rotterdam
Tarifa
Tanger Ville
Algeciras
Ceuta
Tanger Med
Bari
Patras
Izmir
Mersin
Yalova
Pendik
Trieste
Sète
Tunis
Marseille
Dieppe
Dunkirk
Rosslare
Dover
Newhaven
Calais
Kiel
Muuga
Vuosaari
Paldiski
Kapellskär
Karlshamn
Fredericia
Køge
KlaipedaKlaipedaKlaipedaKlaipedaKlaipedaKlaipeda
Cuxhaven
Esbjerg
Gothenburg
Fredrikstad
Brevik
Immingham
Ghent
Zeebrugge
Rotterdam
Felixstowe
Vlaardingen
Frederikshavn
Copenhagen
Oslo
Newcastle
Amsterdam
(IJmuiden)
Rail connections
Ferry business model
Reliable and efficient ferry services driven by
Ferry network
Frequency and network scale
29,231 annual departures
18 freight-only routes (RoRo)
12 combined freight and
passenger routes (RoPax)
38.4m lane metres transported
4.5m passengers
Ferry capacity
66 ferries
80 sailings per day
Port terminal access
48 ports of call
8 ports with own operations
and/or owned
Key freight customers are
forwarders and hauliers
for port-to-port transport
of trailers w/o the driver
accompanying the trailer.
Heavy industrial goods are
also transported directly for
manufacturers using trailer
equivalents, e.g. cassettes
to transport paper and steel.
Finished vehicles are also
transported as they can be
driven on and off the ferries.
Trailers are transported further
on by rail from select ports.
Passengers can bring own
cars and most routes also
transport foot passengers.
The passenger routes are
a mix of overnight routes
and short-sea routes with
a crossing time of a couple
of hours.
DFDS Annual Report 2023 Divisions 35 / 179
DKK 95m was reported. EBIT decreased
2.9% to DKK 2,094m.
The return on invested capital, ROIC, de-
creased slightly to 9.5% in 2023 from 9.8%
in 2022 due to the lower freight result.
Invested capital – ferry fleet
and port terminals
The invested capital was DKK 21.3bn at
year-end 2023, of which ferries amounted
to DKK 14.0bn and port terminals to
DKK 3.0bn. Intangible assets accounted for
DKK 4.4bn of which DKK 3.8bn was related
to the Mediterranean business unit.
At the end of 2023, the ferry route network
deployed 66 ferries, including two side-port
and container ships, of which 76%, or 50
ferries, were owned and 16 were chartered
in for varying pe riods. Two ferries were not
assigned to a route at the end of the year but
were assigned to the Strait of Gibraltar in the
beginning of 2024.
There are currently no plans to order or pur-
chase ferries in the period 2024-2026 as the
current capacity is assessed to be sufficient
to meet forecast customer requirements. In
addition, green ferry engine and fuel tech-
nologies as well as port infrastructures are
to 2022. The adjusted increase was driven
by higher passenger revenue that increased
16.3% to DKK 3,810m as passenger travel
recovered from Covid-19.
Freight ferry revenue, adjusted, was up
2.8% despite a volume decline of 7.9% as
higher rates, in some market areas, and
growth in ancillary revenue offset the nega-
tive impact of the volume decrease.
EBITDA decreased 1.9% to DKK 3,907m.
The passenger EBITDA increased 36.7% or
DKK 331m to DKK 1,232m driven by the
increase in the number of passengers,
higher revenue per passenger, bunker cost
savings, and a one-off positive impact from
reversal of a provision related to Covid-19.
The freight ferry EBITDA decreased 13.3%
or DKK 409m to DKK 2,675m driven by
lower results for the Baltic Sea and Chan-
nel networks while the North Sea and
Mediterranean achieved results on level
with 2022. A reduction in oil price spreads
in 2023 compared to the spike in spreads
in 2022 lowered the return on scrubber
installations.
In connection with the sale and leaseback
of three freight ferries, a one-off gain of
Ferry Division
2023 2023 2022 2022
DKK m Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year
Revenue 3,820 4,176 4,506 3,990 16,493 3,482 4,544 4,753 4,052 16,831
Freight 3,269 3,184 2,994 3,235 12,683 3,125 3,680 3,428 3,322 13,555
Passenger 551 992 1,512 755 3,810 357 864 1,325 730 3,276
Operating costs -2,248 -2,188 -2,275 -2,306 -9,017 -2,130 -2,520 -2,541 -2,349 -9,541
Ferry operations -527 -495 -510 -514 -2,046 -457 -397 -505 -528 -1,886
Bunker -752 -713 -791 -865 -3,120 -817 -1,135 -1,135 -942 -4,030
Port terminal operations -79 3 -796 -809 -755 -3,153 -7 22 -814 -76 5 -690 -2,991
Transport and warehouse solutions -176 -184 -165 -173 -698 -134 -174 -137 -190 -634
Employee costs -630 -639 -668 -666 -2,603 -544 -601 -609 -609 -2,363
Sales, general and administration -216 -246 -268 -235 -965 -209 -306 -293 -235 -943
EBITDA 727 1,103 1,294 783 3,907 598 1,218 1,310 859 3,984
Freight 717 754 535 669 2,675 689 944 722 728 3,083
Passenger 9 350 758 115 1,232 -91 274 587 131 901
Other income/costs, net -4 -8 -14 90 65 -2 -2 -5 -3 -12
Depreciation and impairment -430 -445 -457 -509 -1,841 -435 -456 -442 -445 -1,778
EBITA 293 651 823 365 2,131 161 760 863 411 2,194
Amortisation -9 -9 -9 -9 -38 -10 -10 -10 -9 -38
EBIT 283 642 813 356 2,094 151 750 854 401 2,156
Invested capital, end of period 21,689 21,609 21,912 21,263 21,263 21,325 20,864 21,411 21,716 21,716
EBITDA-margin, % 19.0 26.4 28.7 19.6 23.7 17.2 26.8 27.6 21.2 23.7
EBITA-margin, % 7.7 15.6 18.3 9.2 12.9 4.6 16.7 18.2 10.1 13.0
EBIT-margin, % 7.4 15.4 18.1 8.9 12.7 4.3 16.5 18.0 9.9 12.8
Gross Capex (excel. acquisitions and leases) 438 150 264 281 1,132 836 328 621 247 2,031
ROIC before acquisition intangibles, % LTM - - - - 12.1 - - - - 12.6
ROIC, %, LTM - - - - 9.5 - - - - 9.8
Average number of employees - - - - 6,546 - - - - 6,138
Number of ships - - - - 66 - - - - 64
Lane metres, '000 9,647 9,795 9,455 9,545 38,443 10,613 11,528 9,900 9,705 41,748
North Sea* 3,508 3,600 3,408 3,327 13,843 3,625 3,701 3,465 3,421 14,212
Mediterranean 1,345 1,375 1,274 1,412 5,407 1,360 1,431 1,315 1,462 5,568
Channel 3,993 4,026 3,953 3,979 15,950 4,629 5,410 4,220 3,904 18,164
Baltic Sea 802 794 820 827 3,243 999 986 900 918 3,804
Capacity utilisation freight, % 59 56 53 60 57 66 68 56 57 61
Number of cars, '000 152 301 495 206 1,154 100 309 508 208 1,124
Passengers, '000 619 1,205 1,812 866 4,502 283 984 1,704 801 3,772
Scope 1+2 emissions, 1,000 tonnes CO
2
e - - - - 2,369 - - - - 2,556
CO
2
intensity (kg CO
2
/MDKK) - - - - 143.6 - - - - 151.9
Representation of women - Land; % 30 31 30 30 30 29 30 30 30 30
Representation of women - Sea, % 19 20 20 19 19 18 19 20 19 19
Lost-time injury frequency (LTIF) - Sea,
Incidents/mill. Hours 4.3 4.0 3.7 4.0 3.8 3.8 4.8 5.2 3.4 4.5
Lost-time injury frequency (LTIF) - Land,
Incidents/mill. Hours 14.9 14.1 4.1 11.7 11.3 14.2 7.7 13.6 8.1 11.1
DFDS Annual Report 2023 Divisions 36 / 179
schedule optimisation. This increased
focus on efficiency, plus technical optimi-
sations, resulted in the tank-to-wake CO
2
emissions intensity across the ferry net-
work falling by 5% overall from 13.0 gCO
2
/
GT per nautical mile in 2022 to 12.3 gCO
2
/
GT per nautical mile in 2023. This includes
chartered ferries.
Own fleet emissions intensity decreased
3% from 12.5 g
CO
2
/GT per nautical mile
in 2022 to 12.1 g
CO
2
/GT per nautical
mile, while chartered fleet emissions in-
tensity decreased 12.7% from 17.1 g
CO
2
/
GT per nautical mile to 15.0g
CO
2
/GT per
nautical mile.
Shore power installations are now com-
pleted on six ferries, and shore power is
operational at three ports. In 2023 the use
of shorepower generated a saving of close
to 2,900 tonnes of CO
2
. The pace of shore
power installations is being ramped up and
4-5 new installations per year are expected
for the next 5 years.
Based on a positive outcome of biofuel
trials on Acacia Seaways in 2022, sourcing
of ISCC and RED II compliant biofuel on a
spot basis continued in 2023. In 2023, 242
tonnes of 100% biofuel and 1,922 tonnes
still maturing. The announced green ferry
new-building program is therefore planned
to start in 2026 with delivery of six ferries in
the period 2027-2030.
The lifespan of freight and passenger fer-
ries is estimated at 35 years and 45 years
for passenger cruise ferries. The duration of
port terminal leases is typically between 10
and 40 years.
Port terminals are owned and/or operated
in eight strategic locations.
Decarbonisation
activities and results
The key environmental challenge is to
decarbonise ferry operations by continually
increasing efficiency and later replacing
fossil fuels with sustainable fuels. DFDS’
Climate Action Plan includes short-term ac-
tions to reduce emissions from the existing
fleet and transformative long-term actions
to decarbonise.
In 2023, we completed a detailed analysis
across the network leading to the launch
of the Every Minute Counts, program - a
combination of speed reduction and
equipment such as tug-masters and
reach-stackers.
Great Place to Work
The DFDS target for women representation
in the total workforce is 30%. At the end of
2023, this ratio was 24% (unchanged) in
the Ferry division across both land and sea.
From a gender ratio perspective, the ferry
division can be grouped into three different
employee groups who each has a different
gender profile on employee and manager
levels, respectively: Sea-based women
(24%/9%), Land-based non-office women
of 30% biofuel were consumed, avoiding
2,448 tonnes CO
2
emissions. Customers
have responded favourably to the oppor-
tunity to reduce their emissions at sea via
our independently reviewed mass balance
products launched as ‘Decarbonised Solu-
tions’ in June 2023.
In 2023, an ambitious target to reduce
emissions from land-based activity
by 75% by 2030 was announced. This
includes activity at port terminals, where
emissions continue to be reduced by
electrification, energy efficiency improve-
ments, and increasing use of HVO
(Hydrogenated Vegetable Oil) by terminal
Based on a positive
outcome of biofuel trials
on Acacia Seaways in
2022, sourcing of ISCC
and RED II compliant
biofuel on a spot basis
continued in 2023
Ferry fleet overview, year-end 2023
Total fleet
Freight
ferries
(RoRo)
Freight &
passenger
ferries
(RoPax)
Cruise
ferries
Sideport
ships
Ownership
share, %
Average age
of owned
ships, yrs
Ferry Division 44 16 4 2 - -
North Sea 18 - - 2 78 16
Mediterranean 21 21 - - - 67 15
Channel 11 1 10 - - 73 19
Baltic Sea 1 5 - - 83 12
Passenger - - 4 - 100 34
Chartered out/not-allocated ferries 3 1 - - 75 26
DFDS Annual Report 2023 Divisions 37 / 179
Moving Together Towards 2030
Digitise to Transform
A digitised terminal
solution that brings
higher margins,
reduced emissions,
and better safety
(10%/0%) and Land-based office women
(46%/33%). There has been a general
improvement of one to three percentage
points across the different employee
groups. The main improvement since 2022
has been an increase in the women repre-
sentation within the sea-based employees.
Focus for 2024 will continue to be on
improving the women representation in
general and in non-office management
positions, and to con tinue efforts to ensure
an inclusive culture in order to promote
diversity in our workforce. In January 2024
the Female Cadet Program was launched in
Türkiye aiming to increase the representa-
tion of women onboard DFDS' vessels.
During 2023, the Crewing organisation
continued to facilitate ship/shore seminars
for crew members including managers. The
seminars include workshops on engage-
ment survey, safety and fuel efficiency and
trainings on how to handle bullying and
harassment, cultural awareness and situa-
tional leadership.
The engagement score for the Ferry division
is on par with the DFDS score and external
benchmark. In 2023, there has been an
increase compared to 2022 in a number of
parameters, and especially Autonomy and
Peer relationship have improved. All man-
agers in the Ferry division have personal
goals related to their engagement scores.
Health & safety
Health & Safety procedures are critical in
the operation of ferries and port terminals,
not least the loading and unloading of large,
heavy freight units by tugmasters driven by
port terminal staff. This interaction between
ferries and port terminals is identified as a
high-risk activity and is therefore also a high
priority area.
In 2023, the Lost Time Injury Frequency (LTIF)
increased to 11.3 compared to 11.1 in 2022,
which was primarily related to terminals in
Northern Europe. The root causes have been
identified as slips, trips and fall accidents as
well as accidents caused by operation of ter-
minal vehicles. We have had several serious
near-miss situations in 2023 related to our
cargo operations, which calls for intensified
focus on fortifying our Safety First culture in
all port terminals through our newly estab-
lished Terminal Excellence function.
The LTIF for our fleet was 3.8 in 2023 (2022:
4.5). In 2023, an e-learning awareness
module for safety on RoRo cargo decks was
The implementation of our new mobile
Group Terminal Management System
(GTMS) means that an app is now keeping
track of all vehicles at our terminals;
planning for efficient loading of our
vessels and keeping special procedures
in mind. As the system creates the most
efficient loading plan, it also sends
loading tasks and directions to each
driver directly on their tablet, making
the loading much more efficient. Before
GTMS, this was all handled manually,
which was a time-consuming task. Now,
these processes are digitalised with a
new digital solution which is expected to
save us time and money.
With this fully integrated terminal
management system, we can provide
an accurate stowage plan for drivers to
follow. This includes consideration for
units with attributes such as hazardous
or temperature-controlled units. With
the click of a button, vessel planners
can change a unit's planned position on
board when the circumstances call for it.
This change can then instantly be seen
by the drivers who can then adapt the
loading order.
The system gives us complete
transparency in which vehicles are
approaching the port or are on the
vessel and which units are being loaded.
This transparency also helps the drivers,
as they get a much better understanding
of what is going on. This has also added
a health and safety benefit, as everyone
has a much better understanding of
what is happening around them.
As Mobile GTMS improves efficiency
at every stage in the terminal – from
optimal placement for vehicles entering
the terminal to improved loading and
offloading flow – it minimises the traffic at
the ports, making the terminals safer and
reducing our greenhouse gas emissions.
Mobile GTMS has been implemented in our
ports in Vlaardingen (March), Immingham
(August) & Gothenburg (November) in
2023 and is already showing positive
results. After the first 90 days of GTMS
being introduced, our terminal in
Vlaardingen reported that for 40% of
their vessels, they had seen an average
gain of 2.5% in units loaded per hour.
In 2024 we plan to implement GTMS in our
terminals at Trieste, Pendik and Ghent.
DFDS Annual Report 2023 Divisions 38 / 179
and the customer conversion rate was
increased, and the user satisfaction rate
was likewise further enhanced.
Another key focus area in 2023 was develop-
ment of a system to enable the Dover-Calais
space charter agreement, that currently
covers freight, to be extended to cover pas-
sengers as well. Moreover, the commercial
onboard passenger system was updated
with new features and implemented on three
cruise ferries with rollout continuing in 2024.
Ferry industry and market trends
A number of external factors has strate-
gic relevance for the ferry industry and its
growth prospects.
Brexit
Implementation of the Brexit trade agree-
ment between the EU and the UK is not
finalised in the UK as veterinary controls
plus safety and security checks have yet to
be implemented during 2024.
Since the beginning of 2021, duty-free sales
and customs clearance services were intro-
duced for activities linked to the UK. Aware-
ness among UK consumers of the benefits of
rolled-out and we implemented additional
fire-fighting measures on the DFDS fleet as
well as camera-based pedestrian detec-
tion equipment for heavy machinery in own
terminals. In 2024, we will rollout a Safety
First e-learning across the fleet.
Digitisation
In line with the “Digitise to transform” strategy,
digitisation is focused on how we connect
with our ferry customers and how we improve
operating efficiency of the ferry fleet and
port terminals.
New freight ferry operations software was
launched in the port terminals of Vlaardingen,
Immingham, and Gothenburg. The software
enhances the precision of deck plans for
discharging as it enables tug drivers to load
trailers to exact locations on the ferries as
well as in the ports. Rollout continues in 2024
to other port terminals with own operations.
To improve the customer experience for digital
booking, tracking, and self-service, a new
customer booking platform MyFreight 2 was
implemented across the network during 2023.
Development of the digital booking expe-
rience for passengers continued in 2023
duty-free sales is still low and the market has
potential to grow further in the coming years.
In 2023, growth flattened in customs markets
from the high levels of the previous two years.
Competition
The competitive landscape in most regions
was overall unchanged in 2023. In the
Baltic Sea region, the reduction in volumes
by the war in Ukraine has created overca-
pacity in the ferry market and competition
intensified on some routes.
The Dover Strait market continues to be
negatively impacted by overcapacity due to
a third operator’s addition of three ferries to
the market. Moreover, total freight market
volumes continued to decrease in 2023
with a further 2.6%. Passenger car volumes
increased 13.8% in 2023 but remain 16.9%
below pre-Covid-19 levels.
Nearshoring of manufacturing to Europe
and adjacent countries
Nearshoring remains a focus area for man-
ufacturers to ensure reliable supply chains.
Allocation of more manufacturing to Europe
and adjacent regions, such as Türkiye and
northern Africa, is expected to continue
to underpin the future growth of freight
volumes on ferry routes carrying intra-Euro-
pean trade as well as trade between Europe
and adjacent countries.
Ferry vessel market
The markets for chartering and sale/pur-
chase of ferries used for transporting freight
remained tight in 2023 with limited available
and idle capacity.
Freight ferries (RoRo): The high demand for
freight ferries continued in 2023 and charter
rates remained on level with 2022 as the mar-
ket focused on extensions of existing charters.
Selling activity was limited, and mostly of smal -
ler vessels. European operators took delivery of
four large ferries while only a few older ferries
were scrapped. The orderbook up to 2026 com-
prises only eight ferries. The demand for freight
ferries is expected to remain high in 2024.
Combined freight and passenger ferries
(RoPax): The demand for combined ferries
with an overweight of freight capacity was
also high in 2023. The ferry sales in 2023
were completed at the same price levels as
in 2022. Charter activity was limited as only
few ferries were open for renewal.
Although seven new-buildings were delivered
in 2023, the orderbook remains substantial at
around 42k LM up to 2026.
To improve the customer
experience for digital
booking, tracking, and self-
service, a new customer
booking platform MyFreight
2 was implemented across
the network during 2023
DFDS Annual Report 2023 Divisions 39 / 179
North Sea Mediterranean Channel Baltic Sea Passenger
Head of business area Kell Robdrup Lars Hoffmann Filip Hermann Filip Hermann Kasper Moos
Share of Division’s revenue 2023 29% 28% 21% 8% 11%
Routes – Gothenburg-Brevik/Immingham
– Gothenburg-Brevik/Ghent
– Gothenburg-Zeebrugge
– Esbjerg-Immingham
– Cuxhaven-Immingham
– Vlaardingen-Felixstowe
– Vlaardingen-Immingham
– Oslo Fjord-Zeebrugge-Immingham
– Istanbul (Pendik)-Trieste
– Istanbul (Pendik)-Patras-Trieste
– Istanbul (Pendik)-Bari-Trieste
– Istanbul (Yalova)-Sète
– Mersin-Trieste
– Izmir-Sète (closed end of 2023)
– Marseille-Tunis
– Dover-Dunkirk
– Dover-Calais
– Newhaven-Dieppe
– Rosslare-Dunkirk
– Tilbury-Calais (closed end of 2023)
– Fredericia/Copenhagen-Klaipeda
– Karlshamn-Klaipeda
– Kiel-Klaipeda
– Kapellskär-Paldiski
– Muuga-Vuosaari (freight agreement)
– Oslo-Frederikshavn-Copenhagen
– Amsterdam-Newcastle
Ferries – 18 RoRo and 2 side-port/container ships – 21 RoRo – 10 RoPax
– 1 RoRo
– 5 RoPax
– 1 RoRo
– 4 passenger cruise ferries
Port terminals
(owned and/or own operations)
– Brevik
– Ghent
– Gothenburg
– Immingham
– Vlaardingen
– Istanbul, Pendik
– Trieste
– Dunkirk – Copenhagen
Main customer segments – Forwarders & hauliers
– Manufacturers of heavy industrial goods
(automotive, forest and paper products,
metals, chemicals)
– RDF (refuse derived fuel)
– Forwarders & hauliers – Forwarders & hauliers
– Car passengers
– Coach operators
– Forwarders & hauliers
– Manufacturers of heavy industrial goods
(automotive, forest products, metals)
– Car passengers
– Mini Cruise passengers
– Car passengers
– Business conferences
– Forwarders & hauliers
Main market areas – Benelux
– Denmark
– Germany
– Norway
– Sweden
– UK
– Germany, Italy, France, Spain,
and other Continental Europe
– Tunisia
– Türkiye, and adjacent countries
– France and Continental Europe
– Ireland
– UK
– Baltic countries
– Denmark
– Finland
– Germany
– Sweden
– Benelux
– Denmark
– Germany
– Norway
– Overseas markets
– Sweden
– UK
Main competitors – CLdN
– P&O Ferries
– Road, short-sea container, and rail
transport
– Stena Line
– Cotunav
– Grimaldi
– Road, short-sea container, and rail
transport
– Ulusoy
– Brittany Ferries
– Eurotunnel
– Irish Ferries
– P&O Ferries
– Road and rail transport
– Stena Line
– Tallink Silja
– Transrussia Express (Finnlines)
– Transfennica
– TT Line
– Airlines and road transport
– Color Line
– P&O Ferries
– Stena Line
1 Revenue shares do
not add up to 100%
as Non-allocated
items are not in-
cluded in the table.
DFDS Annual Report 2023 Divisions 40 / 179
Our European network and market posi-
tion as a reliable and efficient partner was
strengthened during the year with total
revenue now exceeding DKK 12bn.
Market conditions turned increasingly
challenging in the second half-year as the
economic slowdown in Europe became
more entrenched. Competition increased
in transport markets as overcapacity
developed in haulage markets. Our focus
on contract volumes, as opposed to spot
volumes, offered some margin protection.
Domestic markets remained more robust
than international trade volumes that
declined in the year, especially across the
Baltic Sea as well as to and from the UK.
The demand for warehousing and other
contract logistics solutions remained firm
as customers are committed to safeguard-
ing the reliability of their supply chains.
The relevance of the logistics network for
customers was enhanced by one strategic
and four bolt-on acquisitions in 2023 that
expanded both product scope and geo-
graphic coverage.
Decarbonisation was underpinned by
the deployment of 90 e-trucks by the
end of 2023 and planning for the order-
ing of more e-trucks in 2024 is ongoing.
Installation of solar panels on ware-
houses and other buildings to produce
own energy continued and the first
commercial products were launched
allowing customers to purchase a
certified Scope 3
CO
2
e reductions.
→ Road transport faced
headwind from challenging
market conditions in H2
→ Demand remained firm for
warehousing and solutions
→ Network expanded and
strengthened through
acquisitions
→ 90 e-trucks in operation
at year-end
Logistics
Division
12.1bn
Revenue
increased 6% to DKK
1.3bn
EBITDA
increased 20% to DKK
5,696
Logistics people
(FTE)
Head of division
Niklas Andersson
Business areas
Dry Goods / Cold Chain
DFDS Annual Report 2023 Divisions 41 / 179
TN
PT
IT
CH
FR
ES
MAR
MAR
UK
SCO
IS
IE
AT
HU
HR
BA
ME
XK
ALB
BG
MKD
SL
GR TR
SK
CZ
PL
DE
BE
LU
NL
DK
SE
NO
FI
RU
EE
LV
LT
RU
BY
UA
RO
MLD
CS
Maia
Ghent
Wijchen
Rotterdam
Hamburg
Tibod
Gyula
Prague
Poznan
KlaipedaKlaipedaKlaipedaKlaipedaKlaipedaKlaipeda
Liepaja
Riga
Tallinn
Vant aa
Turku
Timisora
Bucharest
Kyiv
Karlshamn
Copenhagen
Gothenburg
Jönköping
Gislaved
Borås
Lilla Edet
Oslo
Belfast
Millstreet
Dublin
Corby
Immingham
Vlaardingen
Amsterdam
(IJmuiden)
Waterford
Cork
Amposta
Boulogne-sur-Mer
Nijmegen
Neuenkirchen-vörden
Winterswijk
Szubin
Herning
Hobro
Fredericia
Oslo
Horsens
Helsingborg
Padborg
Belfast
Larkhall
Bellshill
Aberdeen
Inverness
Fort William
Stornoway
Lerwick
Ballymena
Nutts Corner
Dover
Gravesend
Peterborough
Chesterfield
Coventry
Grimsby
Esbjerg
Larne
Container routes (VSA)
Logistics network
Logistics business model
Reliable and efficient transport and logistics solutions driven by
7 core products
Full-load transport
Part-load transport
Freight forwarding
Contract logistics
Customs
Control towers
Packaging
Network scale
66 locations of which:
35 warehouses
14 customs offices
Equipment
9,200 trailers
1,600 trucks
160,000 plastic box pallets
Key customers are manu-
facturers of goods and
food producers as well
as retailers.
The international trans-
port solutions offered are
focused on corridors that
overlap DFDS’ own ferry
route network which provide
capacity and reliable
end-to-end solutions.
Goods are primarily moved
in trailers while container
solutions are offered in
select corridors as well.
For larger customers with
complex supply chains,
transport solutions are
bundled with comple-
mentary products such
as warehousing, control
towers, and customs.
DFDS Annual Report 2023 Divisions 42 / 179
Financial performance
The Logistics Division’s revenue increased
5.9% to DKK 12,096m and decreased 7.5%
adjusted for acquisitions compared to 2022.
The adjusted revenue decrease was driven
by lower road transport volumes primarily
to and from the UK as well as lower volumes
related to especially construction materials
and meat. Energy-related surcharges also
declined in 2023. Domestic volumes, also in
the UK, were generally more stable.
Revenue was moreover decreased com-
pared to 2022 by closure of the Norwegian
overseas cold chain activity during 2022
and the Bruges office during 2023.
The above decreases were offset by
growth in warehousing revenue driven by
full-year impacts from warehouses opened
during 2022 and capacity additions made
in 2023. Revenue was also added by new
customer contracts as well as expansion
of existing contracts.
EBITDA increased 19.5% or DKK 207m to
DKK 1,273m driven by a positive impact
from acquisitions. EBITDA decreased
4.6% or DKK 48m adjusted for acquisitions
Warehousing capa-
bilities and capacity
continued to be ex -
panded organically
in 2023
Logistics Division
2023 2023 2022 2022
DKK m Q1 Q2 Q3 Q4 Full-year Q1 Q2 Q3 Q4 Full-year
Revenue 2,849 3,088 2,985 3,173 12,096 2,666 2,979 2,947 2,832 11,423
Dry Goods 1,562 1,586 1,506 1,577 6,231 1,418 1,618 1,553 1,569 6,158
Cold Chain 1,278 1,487 1,484 1,583 5,831 1,251 1,349 1,388 1,252 5,240
Operating costs
Transport and warehousing costs -1,864 1,917 -1,864 -1,991 -7,636 -1,850 -2,084 -2,045 -1,925 -7,904
Gross profit 985 1,172 1,121 1,182 4,460 816 894 902 907 3,520
Sales, general and administration -169 -179 -182 -176 -70 6 -158 -142 -116 -84 -499
Employee costs -517 -648 -620 -696 -2,481 -442 -478 -490 -545 -1,955
EBITDA 299 345 319 310 1,273 216 274 297 278 1,066
Other income/costs, net 4 5 5 7 20 -5 4 3 10 12
Depreciation and impairment -163 -180 -190 -201 -733 -132 -135 -135 -149 -551
EBITA 140 169 135 116 560 79 143 165 139 526
Amortisation -18 -24 -16 -27 -86 -12 -12 -13 -15 -52
EBIT 122 145 118 89 474 68 131 152 123 474
Gross profit margin, % 34.6 3 7.9 37.6 37.2 36.9 30.6 30.0 30.6 32.0 30.8
EBITDA-margin, % 10.5 11.2 10.7 9.8 10.5 8.1 9.2 10.1 9.8 9.3
EBITA-margin, % 4.9 5.5 4.5 3.7 4.6 3.0 4.8 5.6 4.9 4.6
EBIT-margin, % 4.3 4.7 4.0 2.8 3.9 2.5 4.4 5.2 4.4 4.1
Invested capital, end of period 6,396 6,401 6,591 6,877 6,877 4,312 4,442 4,829 4,984 4,984
Gross Capex (excl. acquisitions and leases) 144 74 94 126 438 68 198 138 294 698
ROIC before acquisitions intangibles, % LTM - - - - 11.4 - - - - 14.9
ROIC, % LTM - - - - 5.9 - - - - 8.2
Average number of employees - - - - 5,696 - - - - 4,544
Scope 1+2 emissions, 1,000 tonnes CO
2
e - - - - 208.8 - - - - 132.6
CO
2
intensity (kg CO
2
/MDKK) - - - - 16.2 11.6
Representation of women - Land; % 17 17 15 15 15 17 17 17 17 17
Lost-time injury frequency (LTIF) - Land,
Incidents/mill. Hours 10.7 5.7 5.9 8.2 8.0 11.2 5.7 4.1 10.1 7.5
DFDS Annual Report 2023 Divisions 43 / 179
which was due to a lower result for the
continental cold chain activities following
one-off and restructuring costs, including
closure of the Bruges office. In addition,
trading between the Continent and the UK
decreased in 2023.
For all other activities, EBITDA was above
2022 driven by higher results for contract
logistics, including new warehouses, and
a considerable result improvement for the
activities in Belgium, including rebalancing
of large transport flows. This was offset
by lower results for most road transport
activities due to lower volumes and margin
pressure in the market.
EBIT of DKK 474m was on level with 2022
and 22.1% or DKK 103m lower adjusted
for acquisitions. The adjusted decrease
was driven by the same dynamics as the
EBITDA decrease.
The return on invested capital, ROIC,
decreased to 5.9% in 2023 from 8.2% in
2022. Return levels for the Dry Goods and
the UK Cold Chain activities were above
the minimum return requirement of 8%. This
includes the acquisition of the McBurney
Transport Group. The return level for the
Nordic and Continent Cold Chain activities
was not satisfactory and an improvement
plan has been initiated.
Invested capital – transport
equipment and intangibles
The invested capital increased 38.0% to
DKK 6.9bn at year-end 2023. The increase
was due to mainly acquisitions as well
as expansion of warehousing capacity.
Intangible assets accounted for DKK 2.4bn
of the invested capital, including goodwill
of DKK 1.6bn.
At year-end 2023, the logistics network de-
ployed 9.2k trailers, 2.4k containers, and 1.6k
trucks. The majority of the equipment was
owned. Cargo carrying equipment assets
were increased 37% to DKK 1.9bn in 2023,
including assets from acquired companies.
Warehousing capabilities and capacity
continued to be expanded organically in
2023. In Sweden two new warehouses were
opened in Jönkoping and Karlshamn, with
the latter replacing smaller facilities and
adding further capacity. A second section
was added to the warehouse in Borås. In
Poznan a new warehouse was opened as
part of a greenfield entry into the Polish
market with transport services linked to
the warehouse.
Warehousing capacity was also expanded
in Corby, linked mainly to part-load trans-
ports to and from the UK, and a new ware-
house was opened in Waterford to support
further growth of the activities in Ireland.
The warehouses added in 2023 are leased.
Land and facility assets were increased
49% to DKK 1.7bn in 2023, including assets
from acquired companies.
Decarbonisation strategy
and actions
With acquisitions made in 2023, the DFDS
fleet now counts over 1,600 trucks of which
97% have Euro 6 emission standard or above.
The growth of the division generated an
increase in CO2 emissions during 2023. As
the revenue growth in the same period has
been lower compared to the total reported
emissions the CO
2
intensity has increased
as well.
During 2023, our preliminary decarbonisation
target of a 75% reduction in CO
2
e intensity
from a 2022-base was confirmed and extend-
ed to all land-based activities, including road
transport, warehousing, and port terminals.
The pace of transition increased in 2023
with the deployment of the majority of our
initial order of 125 electric trucks (e-trucks).
By the end of the year, 90 e-trucks were
operational in Sweden, Denmark, Lithuania,
Belgium, and the Netherlands, with the
remaining 35 due to be delivered during
Q1 2024. In Denmark, we also deployed
55 electric reefer trailers, giving a near ze-
ro-emission transport capability for frozen
and refrigerated cargo.
To reach our goal to have at least 25% of
the truck fleet electrified by 2030, and as
various truck manufacturers brought new
battery electric vehicle solutions to market,
we issued a new tender request for the next
batch of e-trucks.
Work continues on the feasibility of a hy-
drogen trucking trial in the 2025 timeframe,
with a first trial planned for either Germany
and/or the Netherlands. The strategy of
reducing CO
2
emissions through the use
of HVO in existing trucks is progressing al-
though at a slower pace than foreseen due
to availability. Towards the end of the year
we joined the European Clean Trucking
Alliance (ECTA) to accelerate both learning
and progress towards a zero emission
future on road.
Sustainability is
increasingly impacting
logistics business
models as disclosure
on carbon footprints
and the emergence of
emission tolls highlight
the need for action
DFDS Annual Report 2023 Divisions 44 / 179
During the year, 91 new diesel trucks were
purchased, specified and supplied with a
Euro 6.2 exhaust emission rating which is
the latest emission standard restricting a
number of pollutants. This compares to
324 new diesel trucks sourced during 2022,
which makes 2023 the first year where more
zero emission trucks were purchased than
diesel trucks.
During the year, two commercial products
were launched allowing customers for the
first time to purchase a certified Scope 3
CO
2
e reduction, either achieved on land by
e-trucks, or on sea by the use of biofuel.
At the same time, a customer-oriented
CO
2
emissions dashboard was launched,
which reports the CO
2
e we have emitted for
a given customer, both on road and sea.
Both initiatives have prompted positive
customer feedback on the transparency
and speed in providing insights into their
Scope 3 emissions.
Great Place to Work
DFDS’ target for gender diversity is women
representation within the total workforce
of 30%. In 2023, this ratio was 15% (2022:
17%) in the Logistics division, including 17%
(2022: 18%) women managers. For office
workers, the total representation of women
was 36% and 19% for managers, which
is unchanged compared to 2022. The
non-office ratio was 6% (2022: 5%), while
there were still no representation of women
within the non-office manager positions.
The reduction in the share of women
employees seen over the past two years is
primarily related to inclusion of acquired
companies. We remain committed to clos-
ing the gaps related to gender under-repre-
sentation and to foster an inclusive culture
across the division to drive the female
gender ratio higher.
The engagement score for the Logistics
division is lower than the total DFDS score
and saw a slight decrease in 2023. In 2024,
the Logistics management team will work
actively to improve the results.
Logistics has gone from 61% participation
in 2022 to 56% in 2023. The decline relates
to a lower response rate for the non-office
employees (2022: 50% and 45% in to 2023).
In the same period, the Logistics organisa-
tion has grown from 4,764 invited/2,927 re-
sponses in 2022 – and 6,232 invited /3,461
responses in 2023. Overall the land-based
Since 2019, DFDS has substantially
expanded the logistics and transport
network across and beyond the
European continent. With the expanded
network we can offer our clients
multiple services from warehousing,
cold storage, logistics and customs
handling thereby catering to more
complex needs. With this wider range of
logistics solutions, we have been able
to significantly scale our engagement
with numerous customers. One of them
Moving Together Towards 2030
→ Protect & Grow Profits
Scaling our
partnership with
Danish Crown
Leveraging DFDS'
expanded network
and range of
logistics solutions
How DFDS assists Danish Crown
Flexibility of shipping
goods through full and
part loads solutions
Access to DFDS extended
ferry network
Deployment of six electric
trucks into Danish Crowns
transportation fleet
is Danish Crown – one of the world’s
largest exporters of pork.
DFDS’s partnership with Danish Crown
has grown significantly from managing
Danish Crowns transport from Esbjerg
to Immingham to entering a multi-year
strategic agreement in 2023 for full
range of transport and logistics offerings
including role out of electric trucks. The
agreement covers more than 10 markets.
Adjusting to our customers’ needs by
offering new products and services
is the foundation for DFDS’ ability to
stay relevant for more customers. And
as a result, we have managed to grow
the number of enterprise accounts -
meaning industry accounts with a yearly
turnover of or above 10m EUR - from just
7 in 2019 to 23 in 2023.
Looking forward, we will continue to
drive organic growth by continuously
evolving with our existing customers
and attracting new customers with our
broader geographic and product reach.
Explore on www.dfds.com
DFDS Annual Report 2023 Divisions 45 / 179
non-office employees’ participation rate
declined slightly to 48%.
It has proven difficult to reach the non-of-
fice land-based employee group with the
survey although we have targeted the ques-
tionnaire to our non-office employees and
reduced the general questionnaire from 56
to 44 questions in 2023. We are planning
a MyVoice workshop to engage non-office
leaders and find different solutions that
can be applied locally to increase both the
participation and engagement rate.
Health & safety
The Logistics organisation consists of a large
number of locations across the DFDS network
– from small depots with very few employees
to large modern sites with warehouses, cross
docking and other contract logistics solutions.
Due to the difference in daily operations the
safety risk profile and safety awareness can
be very different across sites. In 2023, we
have focused on including all locations from
acquired entities into the DFDS Health &
Safety management system.
During this integration, we have seen an
increase in the Lost Time Injury Frequency
from 7.5 in 2022 to 8.0 in 2023 which is pri-
marily related to accidents in our trucking
service options to book online, manage
documents, and track bookings. 71% of
all transport bookings were booked digi-
tally by year-end 2023. High growth was
also registered for digital bookings for
customs clearance.
Digital solutions are moreover applied to
enhance operating efficiency of warehous-
ing, including automation. Road transport
is assisted by routing planning tools that
also contribute to the lowering emissions.
Logistics industry and market trends
A number of external factors has strategic
relevance for the logistics industry and its
growth prospects.
More focus on sustainable logistics
Sustainability is increasingly impacting
logistics business models as disclosure on
carbon footprints and the emergence of
emission tolls highlight the need for action.
This is promoting investment in more sus-
tainable transport equipment and explo-
ration of alternative transport modes to
reduce/minimise emissions. Demand for rail
and inland waterway transport is therefore
expected to grow even though such modal
entities. In 2023, we have added several
acquisitions within trucking to our opera-
tions, and as we traditionally have more
incidents in trucking entities compared to
other parts of the logistics business, this
had an adverse impact on the total lost
time injury frequency rate.
In 2024, we will increase focus on safe op-
eration of our own trucking operations and
continue to promote our Safety First culture
across high-risk locations. In particular, we
will focus on slips, trips and fall accidents
from entering trucks and trailers.
Digitisation
The digitisation journey continued in 2023
with high focus on standardisation to
enhance collaboration with more custom-
ers across all connectivity options. New
transport customers are to a large extent
now opting to connect with DFDS via our
standard integration options which save
operational teams working hours. Custom-
ised integration options are also offered to
large customer accounts.
Adoption of the online booking platform
continued to rise in 2023 enabling self-
shifts are held back by the limited capacity
and flexibility of these transport modes.
Nearshoring, supply chain
reliability & haulage
The economic slowdown in Europe during
2023 lowered freight volumes and in the
second half-year this led to overcapacity in
the haulage market. This alleviated bottle-
necks and helped to restore the reliability of
intra-European supply chains in 2023.
However, towards the end of the year
and in the beginning of 2024, container
shipping between Europe and Asia was
attacked in the Red Sea which again led to
supply chain disruptions. Nearshoring of
production closer to European end markets
remains a focus area for industry, and de-
mand for warehousing and related logistics
services is therefore expected to continue
to grow to ensure the availability of goods.
Haulage markets experienced overcapacity
in the second half-year which fuelled margin
pressure as transport buyers sought to
reduce costs.
Competitive landscape
There were no material changes in the com-
petitive landscape in northern Europe during
the year, although consolidation of the still
fragmented logistics market continues.
Market participants are a mix of global and
pan-European logistics companies as well
as smaller, regional companies specialised
in certain geographic corridors, transport
modes, and/or customer segments. Digital
forwarders continue to develop their busi-
ness models focused on offering portals
supporting competitive pricing, tracking
and visibility, easy invoicing and payment
processes, and speed of service.
Brexit
New border checks will be introduced in
the UK in three phases in 2024: Export
Health Certificates were introduced 31
January, physical inspections on medium-
and high-risk plant and animal products
will follow on 30 April, and safety and
security declarations on all goods is sche-
duled to start 31 October.
The new border checks entail additional
paperwork and costs and could cause
teething issues for UK imports of foods
and plants during 2024.
DFDS Annual Report 2023 Divisions 46 / 179
Dry Goods Cold Chain
Head of business areas Niklas Andersson/Martin Gade Gregersen Niklas Andersson/Martin Gade Gregersen
Share of Logistics Division’s revenue, 2023 52% 48%
Forwarding Door-door transport of full- & part-load trailers and full-load containers.
Key transport corridors:
• Scandinavia <-> UK/Ireland
• Scandinavia <-> Baltics/Eastern Europe
• Scandinavia <-> Continent (mainly Belgium/France)
• Continent (mainly Netherlands, Belgium, Germany, Czech) <-> UK/Ireland
• Northern Ireland <-> UK
Sales offices across northern Europe, see map for details.
Door-door transport of full- & part load-trailers. Key transport corridors:
• Scandinavia <-> Continent (mainly southern Europe,
Poland, Benelux, France, and Germany)
• Scandinavia <-> UK/Ireland
• Continent <-> UK/Ireland
• Northern Ireland <-> UK
• Domestic Scandinavia, Germany, Benelux, and UK
Sales offices across northern Europe, see map for details.
Contract logistics & distribution centres Contract logistics:
• Sweden – warehousing, cross docking terminals, and just-in-sequence transports
• Benelux – warehousing, cross docking terminals, and just-in-sequence transports
• Management contracts in Sweden, Ireland, and Netherlands
• Warehousing across northern Europe, see map for details
Distribution centres:
• Netherlands (Nijmegen, Winterswijk)
• Germany (Neuenkirchen-Vorden)
• Denmark (Horsens, Padborg)
• Scotland (Larkhall)
• England (Liverpool, Grimsby)
Cross-docking and distribution of meat, seafood, dairy, and other food products requiring temperature-controlled
distribution. Rental of packaging.
Equipment (owned/leased) • 5,689 trailers
• 1,934 containers
• 435 trucks
• 3,541 reefer trailers
• 443 reefer containers
• 1,192 trucks
• 160k reusable plastic box pallets, 850k crates
Customer segments • Food producers
• Manufacturers, mainly heavy industrial goods (automotive, paper), consumer goods, and chemicals
• Retailers
• Food producers of meat, seafood, vegetables, and fruit
• Aquaculture producers
• Retailers
Primary competitors • Blue Water
• DHL
• DSV
• Green Carrier
• LKW Walter
• NTEX
• NTG
• Schenker
• Short-sea container carriers
• ACS&T Logistics
• Blue Water
• DSV
• Nagel
• NTG
• STEF
• XPO Logistics
• Yearsley Food
DFDS Annual Report 2023 Divisions 47 / 179
recovery in passenger volumes and higher
revenue in the Mediterranean business unit.
The Logistics Division’s revenue increased
5.9% to DKK 12,096m and decreased 7.5%
adjusted for acquisitions. The adjusted
decrease reflected lower road transport vol-
umes for both dry and cold chain goods as
well as a decline in cost surcharges that were
boosted in 2022 by higher energy prices.
EBITDA
Operating profit before depreciation,
EBITDA, increased 1.2% to DKK 5,034m.
Ferry Division’s EBITDA decreased 1.9% to
DKK 3,907m as higher passenger earnings
were offset by lower freight ferry earnings.
The latter was reduced by 7.9% lower
volumes and a negative impact from a
Reporting structure
DFDS’ activities are organised in two divi-
sions: The Ferry Division and the Logistics
Division. Non-allocated items consist of cor-
porate costs not allocated to either division.
Financial results
Revenue
Revenue increased 1.6% to DKK 27,304m
in 2023 driven by higher revenue in the
Logistics Division while the Ferry Division’s
revenue decreased in 2023.
The Ferry Division’s revenue decreased
2.0% to DKK 16,493m but increased 6.1%
adjusted for bunker surcharges. The ad-
justed increase was driven by primarily a
→ Stable operating results despite
economic slowdown in Europe
→ Finance cost increased
significantly by higher
interest rates
→ Invested capital increased
5% by acquisitions
→ ROIC decreased by lower
freight earnings
→ Financial leverage of 2.9x
maintained in target range
→ Adjusted free cash flow
of DKK 2.8bn
27.3bn
Revenue
DKK
29.0bn
Invested capital
DKK
7.6 %
ROIC
11.2%
Return on equity
Financial
review
DFDS Annual Report 2023 Results 49 / 179
tive tax rate was 7.5% compared to 7.1%
in 2022 excluding prior year adjustments
and one-offs. The latter includes a Turkish
earthquake tax.
The net profit for the year was DKK 1,505m,
a decrease of 25.5% compared to 2022.
Capital
Assets and invested capital
Total assets amounted to DKK 34.9bn at
the end of the year, an increase of 2.3%
compared to 2022 due to primarily the
addition of acquired companies.
Net working capital increased to
DKK 316m at year-end 2023 from
DKK -98m in 2022. The majority of the
increase was due to higher working
capital in the Logistics Division.
The invested capital increased 5.2% or
DKK 1.4bn to DKK 29.0bn from year-end
2022 following an increase of DKK 1.9bn
in the Logistics Division’s invested capital
to DKK 6.9bn. The increase was related to
mainly the addition of acquired compa-
nies. The Ferry Division’s invested capital
decreased DKK 0.5bn to DKK 21.3bn during
The Group’s EBITA decreased 3.8% to
DKK 2,504m following the increase in
depreciation.
Amortisation and EBIT
Amortisation increased 32.0% or DKK 43m
to DKK 178m. The increase was mainly
related to amortisation of customer con-
tracts from acquisitions.
The Group’s EBIT decreased 5.8% to
DKK 2,326m.
Financing
The net financial cost doubled to DKK 673m
compared to 2022. The net interest cost
increased 83.6% or DKK 295m to DKK 648m
driven by almost a doubling of the net
interest rate to 4.1% and an increase in net
interest-bearing debt of 4.1%. There was in
addition a negative variance of DKK 43m
from exchange rate adjustments.
Tax and the annual result
The ferry activities of the DFDS Group are
covered by tonnage tax schemes in Den-
mark, Norway, the Netherlands, Lithuania,
France, and Türkiye. The tax on the annual
profit amounted to a total cost of DKK
148m. The effective tax rate for 2023 was
8.9% compared to 5.6% in 2022. The effec-
the year driven by primarily the sale and
leaseback of three freight ferries. The
Non-allocated invested capital of
DKK 0.9bn was on level with 2022.
41% of the invested capital consisted of
owned ferries and other ships, and 11%
consisted of owned port terminals, land
and buildings, and cargo carrying equip-
ment. Leased assets made up 20% of
the invested capital up from 17% in 2022.
Goodwill and other intangible assets
amounted to 25% of the invested capital.
Debt
Interest-bearing liabilities, non-current and
current, amounted to DKK 15.5bn at year-
end 2023 which was on level with 2022.
reduction in oil price spreads compared
to an exceptional and temporary spike in
spread levels in the second half-year 2022.
Logistics’ EBITDA increased 19.5% or
DKK 207m to DKK 1,273m. The EBITDA
decreased 4.6% adjusted for acquisitions
due to lower activity levels, especially in the
second half-year, and to margin pressure
driven by overcapacity in haulage markets.
In addition, one-off and restructuring costs
reduced the result.
Non-allocated items increased to
DKK -146m compared to DKK -76m in 2022.
Depreciation and EBITA
Depreciation rose 10.4% or DKK 245m to
DKK 2,615m. The increase for the Ferry
Division of DKK 63m was related mainly to
additional depreciation of ferries following
more dry dockings in 2023, delivery of a
new-building in 2022, and the sale and
leaseback of three freight ferries. The ma-
jority of the Logistics Division’s depreciation
increase of DKK 183m was due to acquisi-
tions. Depreciation was also increased by
expansion of leased warehousing capacity.
The sale and leaseback of three freight ferries
entailed a one-off income of DKK 95m.
Revenue
DKK m 2023 2022 ∆ ∆ %
Ferry Division 16,493 , - -.
Logistics Division 12,096 11,423 673 5.9
Non-allocated items and eliminations -1,285 -1,382 97 -7.0
DFDS Group 27,304 , .
EBITDA
DKK m 2023 2022 ∆ ∆ %
Ferry Division 3,907 , - -.
Logistics Division 1,273 1,066 207 19.5
Non-allocated items -146 -76 -70 92.0
DFDS Group 5,034 4,974 60 1.2
EBITDA-margin, % 18.4 . -. n.a.
DFDS Annual Report 2023 Results 50 / 179
Turnover rate, invested capital
Revenue
Average invested capital
2021
2022
2023
DKK bn DKK mTimes
2019 Q12020 Q22021 Q32022 2023 Q4
20
1,200
1.0
10
600
0 00
0.5
30 1,8001.5
DFDS’ Board of Directors regularly
assesses the capital structure in view of
both current and expected future earnings
as well as future investment requirements,
including acquisitions. The capital distri-
bution policy, distribution in 2023, and the
distribution proposal for 2024 are reported
on pages 68-69.
Equity
Equity amounted to DKK 13,918m at
year-end 2023, including non-controlling
interests of DKK 91m. This was an increase
of 6.0% compared to year-end 2022. Total
comprehensive income for 2023 was DKK
1,343m. Transactions with owners in 2023
amounted to DKK 560m of which DKK
300m was a share buyback and DKK 281m
was payment of dividends excluding trea-
sury shares.
The equity ratio was 40% at year-end 2023
compared to 39% at year-end 2022.
Impairment test
Based on the impairment tests performed
in 2023 of the Group’s non-current intangi-
ble and tangible assets, no impairments or
reversals were recognised. The impairment
tests are described in greater detail in Note
3.1.4 on pages 114-115.
The composition of the interest-bearing
liabilities was altered during the year
partly in order to diversify the composition
with a higher share of bond financing. The
sale and leaseback of three freight ferries
furthermore reduced the share of mort-
gage liabilities and increased the share of
leasing liabilities. The share of mortgage li-
abilities was reduced to 19% from 28% and
bank loans reduced to 35% from 41%, while
the share of bond loans was increased to
8% from 2%. The share of lease liabilities
increased to 38% from 29%.
The share of fixed-rate interest-bearing
liabilities was 56% at year-end 2023 and
48% excluding leasing liabilities.
Net interest-bearing debt increased 4.1%
to DKK 14.7bn at year-end 2023. Excluding
lease liabilities, the net interest-bearing
debt decreased 13.2% to DKK 9.4bn.
Capital structure
The leverage of DFDS’ capital structure is
measured as the ratio of net interest-bearing
debt (NIBD) to operating profit before depre-
ciation (EBITDA). Target leverage is a NIBD/
EBITDA-ratio between 2.0x and 3.0x. At year-
end 2023, the NIBD/EBITDA-ratio was 2.9x
compared to 2.8x at the end of 2022.
Revenue and invested capital EBITDA per quarter
DFDS Annual Report 2023 Results 51 / 179
Equity and deferred tax
Net interest-bearing debt
DKK bn %-share of invested capital
2019 20192020 202120202021 20222022 2023 2023
75
50
25
0
1003.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
The Logistics Division’s ROIC was reduced
to 5.9% in 2023 from 8.2% in 2022. The
overall return for the Dry Goods and the UK
Cold Chain business areas was above the
8% minimum return requirement. The ROIC
of the Nordic and Continent Cold Chain
business areas was not satisfactory in 2023
and is a focus area for improvement.
DFDS’ return target ambition is a ROIC of
around 10% after tax. The target rate is
used as a threshold rate for investments,
including acquisitions.
Cash flow and use of funds
Investments
Net investments in 2023 amounted to
DKK 1,149m that included operating capex,
the sale and leaseback of three freight
ferries, and acquisitions. Operating capex
amounted to DKK 1,581m for maintenance,
replacement, and additions of ferry and lo-
gistics assets. This included ferry capex of
DKK 1,009m and cargo carrying equipment
capex of DKK 367m. The latter included the
first charging facilities for e-trucks.
The sale and leaseback of three freight
ferries resulted in a cash inflow of DKK
1,466m.
Parent company key figures
The revenue of the parent company, DFDS
A/S, was DKK 11,292m in 2023. The profit
before tax was DKK 1,500m. Total assets at
year-end amounted to DKK 22,806m and
the equity was DKK 11,453m.
ROIC
Return on invested capital
and return ambitions
The Group’s ROIC was 7.6% in 2023 com pared
to 8.7% in 2022 as the return decreased in
both the Ferry Division and the Lo gis tics
Division. The ROIC is calculated after tax.
The Group’s ROIC before acquisition in-
tangibles was 10.4% in 2023 compared to
11.7% in 2022.
The Ferry Division’s ROIC was reduced
slightly to 9.5% in 2023 from 9.8% in 2022.
The return on the two cruise ferry passenger
routes im proved in 2023 while return levels
for the North Sea and Mediterranean net-
works were main tained on level with 2022.
Negative earnings impacts from the war
in Ukraine and overcapacity on the Dover
Strait reduced the return levels of the Baltic
Sea and Channel networks.
Adjusted free cash flow, FCFE Capital structure
DFDS Annual Report 2023 Results 52 / 179
32
30
28
26
24
22
20
18
16
14
12
10
8
6
4
2
0
-2
Net working capital
Goodwill
Other intangible assets
Other assets
Leased assets
Cargo carrying equipment
Terminals, land and buildings
Ferries and other ships
20232022
DKK bn, year-end
The adjusted free cash flow (FCFE) was
DKK 2,773m compared to DKK 825m in
2022. The adjusted free cash flow excludes
acquisitions and subtracts lease liability
payments and thus constitutes the cash
flow available for loan payments, capital
distribution, and acquisitions.
Bunker and financial risks
Bunker risk
The bunker cost for ferries was DKK 3.1bn in
2023. Around 93% of the bunker consump-
tion is commercially hedged through bunker
clauses (BAF: bunker adjustment factor) in
freight customer contracts. Hedging of USD
is included in the BAF. The BAF-coverage
lags the actual cost by 1-2 months as the
surcharge is adjusted on a monthly basis
through the year. The remaining consump-
tion is used on passenger routes. In 2024,
the ferry fleet’s bunker consumption is
expected to amount to around 750k tonnes.
Financial risks
DFDS is exposed to a range of financial risks
related primarily to changes in exchange rates
and interest rates. DFDS is also exposed to
liquidity risks in terms of payments and coun-
terparty risk. These risks are further described
and reported in Note 4.1 on pages 122-126.
Acquisitions totalled a cash outflow of
DKK 1,033m covering four acquisitions of
which the McBurney Transport Group was
acquired for DKK 949m.
Cash flow
The cash flow from operating activities
decreased 15.0% or DKK 669m to DKK
3,811m compared to 2022. The decrease
was due to mainly a negative cash flow of
DKK 338m from working capital, a higher
net interest payment of DKK 317m, and
an increase in tax payments of DKK 131m
which included a one-off Turkish earth-
quake tax.
Net investments totalled a negative cash
flow of DKK 1,149m, including an inflow of
DKK 1,466m from the sale and leaseback
of three freight ferries and an outflow from
acquisitions of DKK 1,033m, resulting in a
free cash flow of DKK 2,662m.
The cash flow from financing activities was
negative by DKK 3,115m, including a net
loan outflow of DKK 1,603m, lease liability
payments of DKK 935m and a total capital
distribution DKK 581m. The net decrease in
cash was DKK 454m and at year-end cash
funds amounted to DKK 737m.
Invested capital
DFDS Annual Report 2023 Results 53 / 179
efficiency
Development in CO
2
e
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
150
125
100
75
50
25
0
2019 20212020 2022 2023
Scope 1+2
Tonnes CO
2
e
CO
2
intensity
Tonnes CO
2
e/MDKK
DFDS Annual Report 2023 Results 54 / 179
Scope 1, 2 & 3 CO
2
emissions
Split on material categories
CO
2
efficiency
14.5
14.0
13.5
13.0
12.5
12.0
11.5
11.0
2019 2020 2021 2022 2023
Route network
Own fleet
Fuel- & energy-related activities
(not included in scope 1 & 2)
Upstream transportation
& Distribution
Purchased goods & services
Business travel
Capital goods
56%
28%
13%
1%
1%
Scope 1
70.6%
Scope 3
29.0%
Split on categories
Split on electricity type
Split on activites
Scope 2
0.4%
91% Ferries
8% Trucks
1% Buildings
56% Green
(Own production
+ certificates)
44% Black
(Local grid)
g CO
2
/ GT mile
DFDS Annual Report 2023 Results 55 / 179
* Target-setting with respect to the under-rep
-
resented gender across other management
le
vels follows regulatory requirements as
defined by The Danish Financial Statements
Act, section 99b.
Highest management body
2023
Positions
Share of underrepresented gender
Target
Target year
Other management bodies*
2023
Positions
Share of underrepresented gender
Target 25 %
Target year 2028
DFDS Annual Report 2023 Results 56 / 179
DFDS Annual Report 2023 Results 57 / 179
oversees the general risk management policy
of DFDS, assessing the major risks facing
DFDS, financial such as macroeconomy and
bunker prices as well as non-financial such as
climate and technology. The Board of Direc-
tors also holds strategy review sessions setting
strategic priorities including the announced
Moving Together Towards 2030 strategy.
As part of its strategy review, the Board of Di-
rectors reviewed DFDS’ climate strategy as well
as the climate plans for the Ferry and Logistics
Divisions, including the deployment of increa s-
ingly emission-friendly propulsion technologies.
The Chair of the Board of Directors under-
takes an annual review of the performance
of the Board of Directors with third party
assistance. The composition of the Board of
Directors aims to ensure that competencies
Board of Directors
The Board of Directors is made up of six direc-
tors appointed by the annual general meeting
(AGM) of shareholders, elected for a period of
one year, as well as three directors appointed
by employees, elected for a period of four years.
Five of the six AGM appointed directors are
deemed independent according to the Dan-
ish recommendations on good corporate
governance. Two of the six AGM appointed
directors are women.
The Board of Directors works in accordance with
the company’s articles of association, the rules
of procedure of the Board of Directors as well
as an established annual cycle of focus areas
to ensure that all major governance aspects
are reviewed at least once annually. The Board
that are key to the company’s performance
are represented. Nine board meetings were
held in 2023, all with full attendance except
one director being absent in one meeting.
Board committees
The Board of Directors has established an
audit committee, a nomination committee,
and a remuneration committee. Each com-
mittee has three members.
Audit Committee
The purpose of the Committee is to assist
the Board of Directors in fulfilling its re-
sponsibilities relating to the oversight of the
quality and integrity of DFDS’ accounting,
auditing and financial reporting, ESG re-
porting, tax policy, data ethics, the qualifi-
→ DFDS is compliant with all
Danish corporate governance
recommendations
→ Five of six shareholder-elected
directors are independent and
two are female
Governance
practices
Corporate governance policies are avail able
on this web page: https://www.dfds.com/
More information on DFDS’
corporate governance
Statutory report on
corporate governance
DFDS’ statutes
Materials from DFDS’
most recent AGM
Remuneration policy
Diversity policy
Group tax policy
DFDS Annual Report 2023 Corporate governance 59 / 179
the purpose of the Committee is to ensure
that the executive remuneration of DFDS at
all times complies with the remuneration
policy as well as regulatory and corporate
governance requirements.
The Committee consists of Claus V. Hem-
mingsen (Chair), Klaus Nyborg, and Minna
Aila. All members are deemed independent.
Claus V. Hemmingsen has special competenc-
es in international management and expertise
in offshore activities and shipping. Klaus Ny-
borg has special competences in international
management and board experience from i.a.
listed shipping companies and suppliers to
the shipping industry and expertise in strategy,
M&A, and risk management. Minna Aila has
special competences in international man-
agement, as well as expertise in sustainability,
public affairs, branding and communication.
The Committee held five meetings in 2023 with
full participation focused on preparation of the
2023 Remuneration Report, recommendation
of the Executive Board remuneration and Board
fees, including amendment of peer groups used
for benchmarking of the executive remunera-
tion, and review of workforce matters, such as
talent retention and engagement. In addition, the
future design of incentive plans was re viewed,
including how these can be further aligned to
ESG Framework & governance
Our work with environmental, social, and
governmental topics is part of a structured
ESG Framework which is integrated into
our business strategies and operations.
The ESG Framework is a tool to set ambi-
tions, drive change, and track progress and
impact. It makes people and environmental
advocacy a priority and is an instrument to
drive sustainable societal development.
ESG Governance in DFDS is anchored in the
Board of Directors and the Executive Man-
agement Team (EMT). The Board approves
the ESG strategy as part of the corporate
strategy and is actively involved in the
approval of long-term targets. The Board is
updated on strategic ESG topics and prog-
ress at least twice a year.
The EMT ensures executive ownership of
the ESG agenda and is actively involved in
selecting sustainability priorities and driving
implementation of related action plans. In
2023 an ESG basket was introduced as part
of all management short-term incentives
programmes. The basket has defined targets
on the strategic ESG topics: CO
2
emissions,
women representation in management and
health & safety on both land and sea.
succession planning within the manage-
ment bodies as well as evaluation of the
Board’s work and performance.
More information on the three committees
are available here: https://assets.ctfassets.
net/mivicpf5zews/41Rri9nAwE12rnx9d-
PKD1m/77321e2e73897e2a11d25c4e-
0c9ab0b2/2024_Terms_of_reference_Board_
committees.pdf
Board evaluation
Annually, the Board of Directors conducts
an evaluation of its composition consider-
ing the competencies needed to perform its
tasks, and of the cooperation between the
Board of Directors and the Executive Board.
In 2023, the evaluation was facilitated by an
external consulting firm by way of a written
questionnaire directed to the Directors of the
Board and the Executive Board. The evalua-
tion included, among other things, the Board
of Directors’ and the committees’ effective-
ness and value contribution, board composi-
tion and dynamics, the Chair’s role, strategy
development and implementation, stakehold-
er relations, risk awareness, cooperation with
the Executive Board and on- and off boarding.
support DFDS’ ESG priorities, and the annu-
al wheel of the Committee was planned.
Nomination Committee
The purpose of the Committee is to assist
the Board of Directors in fulfilling its re-
sponsibilities relating to the oversight of
the competences required of the Board of
Directors and the Executive Board and the
organisational structure of management
bodies. Further, the Committee assists in
recruiting for the management bodies.
The Committee consists of Claus V. Hem-
mingsen (Chair), Klaus Nyborg, and Minna
Aila. All members are deemed independent.
Claus V. Hemmingsen has special compe-
tences in international management and
expertise in offshore activities and shipping.
Klaus Nyborg has special competences in
international management and board expe-
rience from i.a. listed shipping companies
and suppliers to the shipping industry and
expertise in strategy, M&A, and risk manage-
ment. Minna Aila has special competences in
international management, as well as exper-
tise in sustainability, public affairs, branding
and communication.
The Committee held three meetings during
2023 with full participation, focusing on
cations, independence, and performance of
the appointed Statutory Auditor, as well as
compliance with rules on non-audit services
provided by the Statutory Auditors.
The Committee consists of Anders Götzsche
(Chair), Dirk Reich, and Jill Lauritzen Melby.
Anders Götzsche and Dirk Reich are deemed
independent. Anders Götzsche has special
competences in international management,
board experience and expertise in finance and
accounting as well as M&A. Dirk Reich has spe-
cial competences in international management,
board experience and expertise in international
logistics activities. Jill Lauritzen Melby has
special competences in financial controlling.
A total of five meetings were held during 2023,
all with full participation. The main topics
dealt with, apart from recurring items, were
monitoring of the migration to the new ERP
system, implementation of the Corporate So-
cial Reporting Directive (CSRD), and a deep-
dive into intra-group mergers of legal entities.
Remuneration Committee
The purpose of the Committee is to assist
the Board of Directors in fulfilling its respon-
sibilities relating to the establishment, mon-
itoring, and adjustment of the remuneration
policy including incentive schemes. Further,
DFDS Annual Report 2023 Corporate governance 60 / 179
bonisation Portfolio covers all centrally driven
decarbonisation projects.
Digitalisation will be crucial in achieving our tar-
gets and decarbonisation ambitions. We have
therefore established a new
CO
2
data platform
and will focus on transparency of energy use
and
CO
2
emissions, analytics and automation,
sharing of real time data with stakeholders and
offer
CO
2
reduction products.
In 2023, a CSRD reporting team has been
established in Group Finance.
ESG disclosure & collaboration
We support and report in line with rec-
ognised ESG disclosure frameworks to be
transparent about our impact on society,
customers, and the environment.
The applied frameworks include TCFD, UN
Global Compact, CDP, SASB, EcoVadis, UN
Guiding Principles on Business & Human
Rights and the EU Taxonomy. We welcome
alignment on ESG data frameworks and will
incorporate requirements related to EU’s
Corporate Social Responsibility Directive
(CSRD) and European Sustainability Report-
ing Standards (ESRS) from 1 January 2024.
The focus on incentivising ESG performance
through bonus schemes will continue in 2024
with updated and more ambitious targets.
In 2023, we have revised our ESG governance
setup to get more traction and alignment
across all decarbonisation activities within
the Group by forming a Decarbonisation
Board. The Decarbonisation Board is the
formal strategic decision forum for climate
related topics. The key objective of the board
is to ensure progress on decarbonisation
targets and development of zero-emission
transport offering via coherent prioritisation
of resources (financial and people) across
all departments involved in realising DFDS’
decarbonisation ambitions. The Decarboni-
sation Board is chaired by the CEO of DFDS.
The Decarbonisation Board meets on a
monthly basis.
In addition to the Decarbonation Board, we
have created a Decarbonisation Team, which
is a functional organisation designed to col-
laborate with existing operational and group
functions working with climate-related issues.
The purpose is to develop the pathway to net
zero, taking into account both
CO
2
reductions
and financial impact, setting detailed targets
and continually monitoring progress against
one or more potential pathways. The Decar-
In recent years, DFDS has made several
acquisitions. Each company acquired
has had its own separate finance systems
and processes, underlining the need to
standardise to simplify.
To meet this need, DFDS is implementing
a new enterprise resource planning (ERP)
system, Microsoft Dynamics 365, across
all business units. The system ensures
consistency, accuracy, and efficiency in
the finance processes while achieving
transparency and data comparability
across DFDS. Since the first go-live in Q4
2021 the system has been implemented
in 26 entities in 11 countries. Among other
things, the system uses an advanced AI
solution which enables better data insight
and transparency in the invoice handling
process, leading to a reduced need for
manual handling and processing.
Unifying and standardising finance
processes into one central system is one
of several standardisation initiatives
underway in DFDS to simplify our business.
Explore on www.dfds.com
Moving Together Towards 2030
Standardise to Simplify
New group-wide
system streamlines
finance processes
60%
Over 60% of all incoming
invoices are processed through
AI automation with no human
intervention
26
The system has been
implemented in 26 entities
in 11 geographical markets
DFDS Annual Report 2023 Corporate governance 61 / 179
Risk and risk
management
The overall risk level remains elevated.
Global political tensions eased somewhat
during 2023 but continue to be a concern
due to the ongoing war in Ukraine and the
outbreak in October 2023 of war in Israel.
Inflation in Europe declined through
2023 and interest rates may have peaked
towards the end of 2023. The transition to
a sustainable lower level of inflation in
Europe and elsewhere however still entails
a recession risk.
In the short term, monitoring and adapting
to geopolitical risks and financial uncer-
tainty remain risk management priorities.
The importance of climate risk was re-
affirmed in 2023 by severe weather and
natural disasters attributable to climate
change. Such events have considerable
potential to impact our transport network.
Our Climate Action Plan sets short-term as
well as a long-term target to become cli-
mate neutral by 2050. The execution risk of
the Plan is first and foremost linked to the
green transition of our ferry operations. The
transition plan towards 2030 is described
on page 21.
Changes in freight and passenger volumes
are the most direct way events, and their as-
sociated risks, feed through to our transport
network. In 2023, the war in Ukraine contin-
ued to reduce freight volumes in mainly our
Baltic Sea network. Passenger volumes re-
covered fully in most markets from Covid-19
in 2023, although overseas passenger
volumes were still below historical levels.
A key business risk is therefore to match
capacity contracted and deployed in our
transport network at any given time with
market volumes. As we own a high share
of our ferries and route locations are
fixed, the flexibility to adapt operations to
decreasing volumes is lowest for the ferry
network. The flexibility to adapt logistics
activities is greater as they typically de-
ploy a higher share of leased assets which
means transport equipment, for example
trailers or trucks, can be redelivered with
shorter notice.
Our transport network moves primarily
goods between European regions, for
example between the UK and Scandinavia
or between Türkiye and Europe. We are
thus exposed to regional events impacting
trade. This includes global and regional
geopolitical events as well as sector spe-
cific events such as competitor actions or
supply chain bottlenecks.
Operating risks related to transport
operations at sea and on land are well
documented and governed by extensive
safety and security regulations. This does
not diminish their importance as the heavy
transport equipment used in our network
can result in severe or fatal accidents. In
addition, a core part of our risk manage-
ment is the responsibility for the safety of
passengers on board our ferries.
Social and governance risks are growing
in importance as expectations of how we
treat each other evolve and compliance
requirements increase.
→ Geopolitical tensions offers both
challenges and opportunities
→ Economic outlook uncertainty
for Europe is still elevated
→ Climate risk continues to be the
most significant long-term risk
→ The Board of Directors regularly
reviews and assesses risks and
opportunities
DFDS Annual Report 2023 Corporate governance 62 / 179
ness of the risk management and
internal control systems.
DFDS’ Executive Management Team
(EMT) is responsible for the day-to-
day risk management processes
and for the continuous development
of risk management activities.
Risk management process
The overall risk management process
consists of three independent, but com-
plementary sub-processes. Operational
risk management consisting of weekly EMT
meetings where day-to-day risks and oper-
ational matters are reviewed and resolved.
Secondly, strategic risk management is
based on quarterly meetings in the Exec-
utive Risk Committee (ERC) - comprising
EMT and DFDS’ General Counsel - where
strategic risks and mitigating action plans
are reviewed. Thirdly, the risk management
strategy, framework and processes, which
include of bi-annual meetings in the Audit
Committee and an annual Board of Direc-
tors meeting where strategic risks, climate
risks, mitigating action plans, and the
overall ERM (Enterprise Risk Management)
framework are reviewed.
Introduction to risk management
Risk management is integral to DFDS’
strategy and to the achievement of long-
term goals and strategic ambitions. The
success of DFDS depends on the ability
to identify and engage with opportunities
generated by our business and the markets
we operate in, while in parallel ensuring
that risks are accurately identified and
managed.
Risk in DFDS is defined as the potential
occurrence of external or internal events
(or series of events) that may negatively
impact the ability to achieve the compa-
ny’s objectives or financial goals. The risk
management policies form the principles,
processes, key responsibilities, and report-
ing requirements within DFDS.
Risk management
governance structure
The Board of Directors is responsible for
the risk management strategy and the
overall risk management framework and
policies. The Board, advised by the Audit
Committee as appropriate, manages
risks and reviews the effective-
The strategic part of the risk management
process is a quarterly process consisting
of separate, but interdependent sub-pro-
cesses, as illustrated in the figure on the
following page.
DFDS’ key 2023 short-term
(<36 months) risk analysis
The key risks to achieving DFDS’ strategic
ambitions, the assessment of each of the
key prioritised 2023 risks, and the deployed
mitigation strategies are described in the
following pages.
DFDS’ top seven risks identified during
2023 are shown on the horizontal axis of
the illustration to the right which combines
the one-year financial impact with the
likelihood of risks occurring over a period of
three years.
Risk management
is integral to DFDS’
strategy and to the
achievement of
long-term goals and
strategic ambitions
DFDS Annual Report 2023 Corporate governance 63 / 179
Top seven risks
1. Risk identification
• Identification of risks against key
business objectives
• Determination of risk types to be
included in process (e.g., operational,
legal, reputational etc.)
• Identification of resources responsible
for process in each area
2. Risk assessment
• Coordination of risk assessments through
interviews to ensure consistency
• Identification of DFDS top risks
3. Risk mitigation
• Identification of appropriate
risk responses
• Risk responses to be based on
assessment of loss frequency and impact
• Management actions to be specific to
reducing likelihood and/or impact
• Action plans with assigned owners
developed and monitored by
risk committee
4. Risk monitoring
• Continuous monitoring of key
identified risks
5. Risk reporting
• Risk reporting highlighting key risks
and recommendations, status of
manage ment actions
• Reporting of early indicators
and emerging risks
DFDS Enterprise Risk Management
Likelihood of risk occuring
Annual financial impact
Compliance
Employees
Climate
Macroeconomy
IT
Technology
All positions are residual risks after current mitigation
Low
Low
Medium
Medium
High
High
DFDS Annual Report 2023 Corporate governance 64 / 179
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DFDS Enterprise
Risk Management
Framework
Geopolitics
Key risks
1. Geopolitics
Political instability
Risk description: Geopolitical events altering trade volumes
can impact DFDS's revenue and profits. Ongoing conflict in
Ukraine and recent development in the Middle East could af-
fect Europe's economic growth. Additionally, shortages of es-
sential metals, oil, gas, and other raw materials could create
supply chain issues, potentially leading to increased prices,
reduced activity and investments, and higher unemployment.
These shifts could negatively affect DFDS's operations and
financial stability.
Mitigation strategies: By diversifying our exposure across
various countries, industries, and customers, we effectively
minimize our vulnerability to specific risks. DFDS exempli-
fies prompt adjustment to evolving situations as and when
required, for example by strategic exits or re-calibration
in challenged regions. Business forecasts and cash flow
analyses are routinely updated, and if deemed necessary, we
adjust our investment priorities to maintain balance.
Risk assessment: In 2023, global political instability esca-
lated, where the continued war in Ukraine and recent conflict
between Hamas and Israel set the scene. These circumstanc-
es hold the potential to instigate considerable variations in
DFDS' earnings and revenue, as alterations in the trade of
goods and passenger patterns can influence the transport
volumes of the company. Besides, the scarcity of significant
resources like metals, oil, gas, and other raw materials may
trigger supply issues, logistical setbacks, and cost inflation,
potentially culminating in declining activities and invest-
ments, along with increased unemployment.
2. Macroeconomy
Economic growth
Risk description: Where the immediate risk of a severe
recession has worn off in Europe, potential effects from a
slowdown in the Chinese economy could eventually spread to
Europe during 2024. Inflation has likely peaked but is still at a
higher level than seen for the past few decades, rubbing off on
interest rates. Growth in the European economy is believed to
have reached its lowest point for this period, and recovery and
some volume pick-up is expected during 2024 although the
exact timing and magnitude is uncertain. However, decreased
activity levels, lower investments, and increased unemploy-
ment following potential shocks to the European economy
and/or lower GDP growth across Europe, could all negatively
impact the demand for transportation, and in turn reduce
DFDS’ revenue and earnings.
Mitigation strategies: Monitoring shifts in the global economy,
key markets, import/export limitations, and specific country
events is vital to DFDS' readiness and management of possible
impacts. We maintain a steady focus on cash requirements
and funding availability to ensure our capacity to fulfil future
financial obligations.
Risk assessment: Despite 40-year record high inflation and a
high interest rates environment, there was a limited slowdown
in European economy in 2023 and DFDS’ resilience proved it-
self again. 2024 could be another low-growth year, with limited
growth in the volume of goods traded and passengers.
3. IT
Systems breakdown, cyber-
attacks and security breaches
Risk description: Information technology systems and plat-
forms form an integral part of DFDS' daily operations, under-
scoring our reliance on a robust and secure IT landscape. Any
disruptions to these vital systems carry the potential to signifi-
cantly compromise our operations and earnings. Inadvertent
loss of data, cyber incidents leading to critical system shut-
downs, or information security risk related to the management
of passenger and freight customer data all pose significant
threats to the organization. These risks need to be effectively
mitigated to avoid severe disruptions to daily operations, sub-
stantial fines, and potential damage to our reputation.
Mitigation strategies: The magnitude of IT risks is mitigated
through continued investments in cyber security solutions,
continuous system monitoring, implementation of backup
systems, and establishment of trusted procedures to restore
system functionality. Our approach includes ongoing updates
to our standard systems, regular testing of recovery processes,
and a focus on identifying and preventing malware. We employ
multi-factor authentication and network segmentation and
utilize both internal and external resources for conducting
awareness and security tests.
Risk assessment: Throughout 2023, DFDS maintained ongo-
ing testing and training to counter threats posed by phishing
and other hacking methodologies. We also reassessed our
capabilities and processes concerning cyber incident re-
sponse with the objective of making necessary improvements
and optimizations. Generally, investments in cyber security
were intensified in 2023. Nonetheless, despite the heightened
internal focus on mitigating IT risks within DFDS, there remains
a possibility of a cyber-attack causing operational disruptions.
4. Environmental
Climate change
Risk description: The urgency of addressing climate change is
rising and the push for emission reductions is intensifying. Inabil
-
ity to meet climate obligations set by stakeholders could impact
DFDS' operational license in certain markets and damage our
reputation, subsequently affecting our financial performance
through lost business opportunities or regulatory fines. The
initiation of the Emission Trading System (ETS) in 2024 poses
potential risks associated from costs being passed through to
customers, potentially causing transformations in freight vol
-
umes between various transport modes not benefitting DFDS.
Mitigation strategies: Being a provider of transport and logis
-
tics services, we strive to protect and enhance the infrastruc-
ture for goods and passenger movement. Our commitment is to
minimise our environmental impact and prioritise sustainability,
driving us to invest in innovative technologies and services. A
cornerstone of DFDS' strategy is to improve our climate foot
-
print and play an active role in the transition from fossil fuels
to greener alternatives, a commitment solidified through the
DFDS Climate Action Plan. The DFDS Sustainable Fleet Project
focuses on initiatives that will facilitate this transition. Our at
-
tention extends to the reduction of greenhouse gas emissions as
well as local air pollution emissions like SO2, NOx and others.
Risk assessment: DFDS is committed to lowering our environ-
mental impact and are channelling funds into services and
technologies demonstrated in our Climate Action Plan and Sus-
tainable Fleet Project. Both initiatives prioritise the reduction
of greenhouse gases and local air contaminants. Furthermore,
DFDS launched in 2023 ‘Group Decarbonisation team’ and
‘Decarbonisation Board’ to run and oversee progress.
DFDS Annual Report 2023 Corporate governance 65 / 179
Key risks continued
5. Compliance
Reputational damage, claims, and fines
Risk description: As a company with international operations, DFDS must comply with
a wide array of national and international regulatory requisites. This predominantly
relates to regulations surrounding tax, customs, VAT, privacy, sanctions, and competi-
tion law. Such regulations are continuously expanding and becoming more complicat-
ed, potentially exerting a significant influence on our operating costs. Non-adherence
to regulations could lead to penalties, jeopardise our operating licenses in some
markets, and could also have lasting implications on our reputation. This, in turn,
could adversely affect our relationships with customers, partners, and tarnish DFDS'
public image.
Mitigation strategies: DFDS is dedicated to adhering to the laws and regulations in ev-
ery country where we operate. To ensure this, our group functions collaborate closely
with local business units to monitor and review our protocols, ensuring compliance
with all relevant obligations. We continue internal mandatory training programs
for relevant staff and provide a whistle-blower function for internal reporting of any
potential non-compliance. Our Code of Conduct helps keep both new and current
employees focused on maintaining general compliance. We mitigate risks associat-
ed with passenger data through internal controls and strict adherence to rules and
regulations governing information security.
Risk assessment: DFDS employs a systematic strategy for managing compliance
risks, with assigned individuals throughout the organization responsible for discern-
ing, prioritising, and regulating existing or potential legal, policy noncompliance,
or ethical risks. e-learning programs and courses are offered and hosted regularly.
Comprehensive integration plans, including inductions to DFDS' code of conduct and
other compliance processes, are enacted to ensure that new employees - either new
recruits or from acquisitions - are familiar with DFDS' policies.
6. Employees
Retention, attraction, and diversity
Risk description: At DFDS, we recognise that our talented and committed workforce
is pivotal to our sustained success. Emphasising talent attraction, retention, and
diversity is crucial in maintaining the company's performance and growth. A positive
work environment, robust leadership, commitment to employee development, growth
opportunities, and a high regard for diversity are fundamental for attracting and re-
taining personnel and talent. Should we experience the loss of skilled key employees
or fail to attract new talents, it could potentially have enduring negative effects on the
company's operational, strategic, and financial progression.
Mitigation strategies: Several measures have been initiated to attract vital personnel
to DFDS, primarily through enhanced employer branding activities. Various initiatives
have been implemented to ensure DFDS is an appealing place to work; from maintain-
ing a safe and comfortable physical environment in offices, warehouses, and ferries,
to fostering a psychologically healthy work setting characterized by mutual respect,
diversity, strong leadership, and transparency. User-friendly IT systems further rein-
force DFDS as an employer of choice. Moreover, internal leadership programs provide
career advancement opportunities for our talented staff. To further stress the impor-
tance, our new strategy Moving Together Towards 2023 specifically calls for actions to
make DFDS a great place to work.
Risk assessment: In 2023, the recruitment and retention of proficient staff in our
Technology and Information department witnessed significant improvement. Despite
these positive strides, the scarcity of qualified resources for certain roles persisted as
a challenge throughout the year. The implementation of a more efficient recruitment
platform, coupled with an enhanced understanding of factors driving staff attrition,
contributed to the improvement in talent attraction and key employee retention
during 2023.
7. Technology
Digitalisation and automation
Risk description: Being at the forefront of digitalisation is a strategic priority for DFDS,
especially as new digital business models and platforms emerge in the transport and
logistics industry. These platforms mainly aim to digitise the mediating role between
manufacturers and end users, a task presently managed by freight forwarders and
transport service providers. DFDS' existing business model could face disruption from
advancing technologies for autonomous vehicles, vessels, and terminals. If we fail
to adapt to these technology-driven industry evolutions, it could result in customer
attrition and loss of earnings.
Mitigation strategies: Through development and expansion of our digital self-service
offerings and by mirroring competitive alternatives we seek to provide customers
with the solutions they request. Part of this development include better integration
between our platforms, easing the usage for both customers and employees. Our sys-
tems are being improved in certain areas allowing us to increase the use of real time
data in our daily operations. Part of these changes have been developed in-house, but
also in partnerships with external digital players with state of the art knowledge and
expertise, thereby keeping us at the forefront of the digital transition.
Risk assessment: We see no immediate digital threats to our ferry routes and logistics
operations. However, digitised models, especially within freight-forwarding, have rap-
idly matured. Over the long term, DFDS' existing business model could potentially face
disruptions from emerging technologies for autonomous vehicles, vessels, and termi-
nals, as well as advancements in artificial intelligence (AI), internet of things (IoT), and
automation. In recent years, DFDS has invested in in-house technological capabilities
both to counter risks presented by new technologies and business models, and also to
develop proprietary solutions based on these technologies and seize potential busi-
ness opportunities. Our efforts to align DFDS with a more digitally driven commercial
landscape have been strengthened through partnerships with digital actors.
DFDS Annual Report 2023 Corporate governance 66 / 179
Climate-related risks
Climate-related risks are an integral part
of DFDS´ overall governance, strategy and
risk management process. The time hori-
zon of climate-related risks extends
beyond short-term risks (<36 months)
that are covered by the Group’s general
enterprise risk management process, and
are thus being addressed as part of the
Group’s Climate Action Plan, see page 21.
Since 2022, the TCFD Framework has been
applied to identify, assess, and manage
climate-related risks.
In line with TCFD recommendations,
medium and long-term risks have been
assessed by using scientific data from
IPCC 2022 to conduct a 2ºC or lower-sce-
nario analysis. The TCFD Framework splits
climate-related risks into physical and
transitional risks described below:
Transitional Risks
Transitional risks are related to the
transition to a lower-carbon economy,
including policy, legal, technology, and
market changes to address mitigation
and adaptation requirements related to
climate change.
Transitional risks related to technology
will have a significant financial impact on
DFDS over the next many years. Executing
on the ambitious targets laid out in DFDS’
Climate Action Plan, reducing emissions
by 45% by 2030 and achieving carbon
neutrality in 2050, will require significant
investments in carbon neutral trucks and
vessels, and may also initially result in
higher fuel costs.
In 2026, we expect to initiate a newbuild-
ing program for zero-emission ferries. The
program covers six planned new-buildings
which will be fuelled by methanol, ammo-
nia or electricity, and the total expected
investments are expected to be around
DKK 7.3bn (DKK 0.5bn in 2026, DKK 1.5bn
in 2027 and 2028, DKK 1.7bn in 2029, and
DKK 2.1bn in 2030). The investments and
the timing will be contingent on availability
of green fuels.
The short-term focus is on replacing con-
ventional trucks with electric trucks, and
on implementing technical upgrades on
existing vessels, including optimal coat-
ing on vessel hulls and implementation
of advanced decision support systems.
Medium-term, the fleet will undergo major
upgrades with modifications of bulbs and
mate patterns, resulting in direct damage
to assets and indirect impacts from supply
chain disruption.
Three types of chronic and acute physi-
cal risks have been identified as having
a potentially disruptive impact on DFDS’
business and financial performance. The
risks include severe storms and extended
periods of extreme heat, rising sea levels
and costal floodings, as well as losses in
crop production due to climate change,
which may lead to a reduction in trans-
ported volumes. Mitigation strategies have
been developed for each of these risks to
minimize the potential negative impact
on DFDS. This includes dialogue with port
authorities and governments, continuous
monitoring of infrastructure, compliance
with safety standards and applicable laws
and regulation, internal response mecha-
nisms, among others.
DFDS is not operating in geographical ar-
eas where climate-related physical risks
are likely to have a high negative impact,
but the company may still be impacted
by both chronic and acute physical risks
in future.
Climate-related opportunities
Climate-related risks may also present
business opportunities and positive side
effects. As an example, changed customer
needs and patterns might lead to demand
for new transport routes, just as working
diligently with mitigation strategies has the
potential to improve organisational resil-
ience and lead to more robust infrastruc-
ture and an improved safety culture. Being
at the forefront of the transition to carbon
neutrality delivering on the increased de-
mand for zero-emission transport corridors
will continue to be a significant competitive
advantage.
propellers. The plan is based on a careful
analysis of how the company operates
today, and which areas have the greatest
potential for improvement. Long-term, the
transition to carbon neutral operations
requires development of new technologies,
partnerships, and business models.
Transitional risks also include risks related
to regulation and taxation of GHG emis-
sions, as well as increasing cost related to
the internal workforce working on compli-
ance. Additionally, failure to meet expecta-
tions in due time could potentially lead to
loss of reputation and trust.
Before zero-emission ferries are in oper-
ation, operational expenditures related
to the green transition are expected to be
limited. All ETS-like cost are expected to
be compensated for by our customers. For
zero-emission ferries, 60% of the additional
fuel cost of transitioning to green fuels is
expected to be compensated for by EU.
Physical Risks
Physical risks are related to the physical
impacts of climate change and can be
event driven (acute) related to increased
severity and frequency of extreme weather
events, or longer-term shifts (chronic) in cli-
DFDS Annual Report 2023 Corporate governance 67 / 179
The DFDS share
and shareholders
Share capital
DFDS has one class of shares. The share
capital at the end of 2023 was DKK 1,173m
comprising 58,631,578 shares, each with
a nominal value of DKK 20. There were no
changes to the share capital during 2023.
Stock exchange trading
The DFDS share is listed on Nasdaq Co-
penhagen where 17.0m DFDS shares were
traded in 2023 equal to an annual turnover
of DKK 4.1bn compared to DKK 5.0bn in
2022. The average number of trades per
day was 652 compared to 864 in 2022 and
the average daily turnover was DKK 16.4m
compared to DKK 19.9m in 2022. The DFDS
share is part of Nasdaq’s Large Cap index.
Share price development and yield
DFDS’ share price was DKK 223 at year-
end 2023, a decrease of 13.0% compared
to year-end 2022. By comparison, the
Danish stock market’s industrials index in-
creased 4.9% in 2023. The market value at
the end of 2023 was DKK 12.6bn, excluding
treasury shares.
The total distribution yield of the DFDS share
was 4.6% in 2023 following dividend payments
and a share buyback totalling DKK 581m.
Distribution policy
The starting point for determining the level
of capital distribution to shareholders is
the current and expected future financial
→ Distribution to shareholders
of DKK 581m
→ Distribution yield of 5%
→ 13% share price decrease in 2023
1 With reference to §38 in the Danish Capital
Markets Act, Lauritzen Foundation domiciled in
Copenhagen, Denmark, has notified DFDS A/S
that it holds more than 33% of the share
capital and voting rights of the company.
2 Total of registered shareholders.
→ Søren Brøndholt Nielsen,
VP, IR & Corporate Brand
T +45 3342 3359
→ Shareholder’s secretariat
shareholder@dfds.com
Ownership structure,
year-end 2023, %
Lauritzen Fonden Holding .
Institutional shareholders 40.6
Other registered shareholders 8.7
Treasury shares .
Non-registered shareholders .
Total .
Shareholder distribution,
year-end 2023
No. of shares
No. of
shareholders
% of share
capital
1-50 , .
51-500 10,832 3.4
501-5,000 2,418 5.3
5,001-50,000 .
50,001- .
Total , .
DFDS Annual Report 2023 Corporate governance 68 / 179
leverage measured as the ratio between
NIBD and EBITDA. While the overall target
leverage is a ratio between 2.0x and 3.0x, a
short-term target of 2.5x for year-end 2026
was announced in December 2023.
NIBD/EBITDA was 2.9x at year-end 2023
compared to 2022. For shorter periods,
leverage can move outside the range due to
special events, e.g. strategic acquisitions.
Capital is distributed through dividend
and share buybacks. Whether capital is in
excess is assessed based on the leverage
target as well as future earnings prospects
and investment requirements. Contin-
gent on the size of the dividend, it may be
preferred to pay dividend semi-annually to
facilitate a faster return of capital to share-
holders and to align payments with DFDS’
seasonal cash flow that normally peaks
during the third quarter, the high season for
passenger travel.
Distribution to shareholders in 2023
A share buyback of DKK 300m structured
as an auction process was completed
22 February 2023 with the purchase of
1,071,428 shares at a price of DKK 280 per
share. In addition, a dividend of DKK 281m
equal to DKK 5.00 per share was paid in
March 2023.
Capital distribution proposed for 2024
The Board of Directors proposes to distrib-
ute a total of DKK 600m to shareholders in
2024 through a combination of a dividend
and a share buyback.
An ordinary dividend of DKK 3.00 per share
equal to DKK 169m will be proposed for
approval by the annual general meeting
(AGM) in March 2024.
The remaining DKK 431m will be distributed
through a share buyback under the Safe
Harbour rules that started on 12 February
2024 and expires on 31 December 2024.
The share buyback corresponds to around
3% of the market value of DFDS' share capi-
tal at the current share price.
Lauritzen Fonden Holding has committed
to participate pro rata in the share buyback
program with a share of 41.6%.
Shareholders
At the end of 2023, DFDS had 23,447
registered shareholders that owned 95%
of the share capital. Lauritzen Fonden
Holding was the largest shareholder with
a holding of 41.6% of the total share capi-
tal at the end of 2023.
Investor Relations
The aim of investor relations (IR) is to facili-
tate an ongoing dialogue with the financial
community, primarily institutional investors,
and analysts. Key events during the year
are quarterly reports, conference calls, and
roadshows to present strategic and finan-
cial results. Moreover, monthly ferry volume
figures are released through the year.
In December 2023, a capital markets day
was held in Copenhagen to conclude on
the Win23 strategy period and present
an updated strategy, including new finan-
cial target ambitions. Both are detailed in
this report.
In addition, management and IR partici-
pate at investor conferences, roadshows,
and meetings with investors and analysts
between quarters. A considerable share
of roadshows and meetings were virtual in
2023. There is a silent period of four weeks
prior to the release of quarterly reports.
Share related key figures
2023 2022 2021 2020 2019
Share price, DKK
Price at year-end 223 256 349 275 325
Price, high 291 356 400 325 332
Price, low 195 194 262 134 215
Market value year-end, DKK m 12,557 14,703 20,038 15,772 18,593
No. of shares year-end, m 58.6 58.6 58.6 58.6 58.6
No. of circulating shares year-end, m 56.3 57.3 57.4 57.3 57.2
Distribution to shareholders, DKK m
Dividend paid per share, DKK 5.00 8.00 0 0 4.00
Total dividend paid ex. treasury
shares 281 461 0 0 229
Buyback of shares 300 0 0 0 0
Total distribution to shareholders 581 461 0 0 229
FCFE yield, % 13.4 5.6 5.2 2.6 -0.8
Total distribution yield, % 4.6 3.1 0 0 1.2
Cash payout ratio, % 34.2 55.9 0 0 -152.7
Shareholder return
Share price change, % -13.0 -26.5 26.8 -15.3 21.7
Dividend return, % 2.0 2.3 0 0 1.5
Total shareholder return, % -11.1 -24.2 26.8 -15.3 23.2
Share valuation
Equity per share, DKK 245 227 199 183 180
Price/book value, times 0.9 1.1 1.8 1.5 1.8
DFDS Annual Report 2023 Corporate governance 69 / 179
DFDS share price and trading volume, 2023 Share price performance relative to Copenhagen
industrials index 2019-2023
Share price DFDS
Share price, DKK No. of shares, '000
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2019 2020 2021 2022 2023
360
325
290
255
220
185
150
600
500
400
300
200
100
0
300
250
200
150
100
50
0
Trading volume Industrial index Nasdaq Copenhagen (OMXGI)
Analysts covering
the DFDS share
Carnegie
Dan Togo Jensen
T +45 3288 0245
Danske Bank Markets
Michael Vitfell-Rasmussen
T +45 4512 8036
vitf@danskebank.dk
Nordea
Lars Heindor
T +45 5376 6054
lars.heindor@nordea.com
RBC Capital Markets
Ruairi Cullinane
T +44 207 002 2275
SEB Equities
Ulrik Bak
T +45 3125 6033
DFDS Annual Report 2023 Corporate governance 70 / 179
Board of Directors
as per 22 February 2024
Claus V. Hemmingsen (1962)
Chair / 5,000 shares
Position: Owner and Managing Director,
CVH Consulting ApS
Joined Board: 29 March 2012
Re-elected: 2013-2023
Period of office ends: AGM 2024
Chair of the Nomination and
Remuneration Committees
Board meeting participation: 9/9
Committee participation: 6/6
Chair: HusCompagniet A/S, Innargi Holding
A/S (and one wholly-owned subsidiary)
Deputy Chair:
Rambøll A/S
Board member: A.P. Møller Holding A/S,
A.P. Møller og Hustru Chastine Mc-Kinney
Møllers Fond til almene Formaal, Den A.P.
Møllerske Støttefond, Work Wear Group A/S
(and two wholly-owned subsidiaries), Fonden
Mærsk Mc-Kinney Møller Center for Zero
Carbon Shipping, Global Maritime Forum
Fonden and Noble Corporation Plc.
The Board of Directors is of the opinion
that Claus V. Hemmingsen possesses
the following special competences:
International, commercial, and operational
management experience and expertise in
shipping, offshore, and oil & gas activities,
including HSSE & Sustainability, M&A, capital
markets, and non-executive directorships.
Klaus Nyborg (1963)
Vice Chair / 825 shares
Position: Managing director, Return ApS
Joined Board: 31 March 2016
Re-elected: 2017-2023
Period of office ends: AGM 2024
Member of the Nomination and
Remuneration Committees
Board meeting participation: 9/9
Committee participation: 6/6
Chair: Dampskibsselskabet Norden A/S,
Bunker Holding A/S, Uni-Tankers A/S,
Bawat A/S, Moscord Pte. Ltd., Singapore
and Chairman of The Investment
Committee of Maritime Investment Fund I
K/S and Fund II K/S.
Deputy Chair: A/S United Shipping
& Trading Company
Board member: Karen og Poul F.
Hansens Familiefond, Norchem
A/S, X-Press Feeders Ltd.
The Board of Directors is of the opinion that
Klaus Nyborg possesses the following special
competences: International management
and board experience from i.a. listed
shipping companies and suppliers to the
shipping industry, and expertise in strategy,
M&A, finance, and risk management.
Minna Aila (1966)
Board member / 170 shares
Position: Senior Advisor, Sustainability and
Corporate Affairs, Neste. From 1.7.2024
onwards, Executive Vice President,
Corporate Affairs & Brand, Konecranes.
Joined the board: 23 March 2022
Re-elected: 2023
Period of office ends: AGM 2024
Member of the Nomination and
Remuneration Committees
Board meeting participation: 6/6
Committee participation: 6/6
Minna Aila has no managerial or executive
positions in other companies.
The Board of Directors is of the opinion that
Minna Aila possesses the following special
competences: International management,
as well as expertise in sustainability, public
affairs, branding, and communication.
Anders Götzsche (1967)
Board member / 3,500 shares
Position: Executive Vice President and CFO,
VELUX A/S
Joined the board: 19 March 2018
Re-elected: 2018-2023
Period of office ends: AGM 2024
Chair of the Audit Committee
Board meeting participation: 9/9
Committee participation: 6/6
Chair: Rosborg Møbler A/S
The Board of Directors is of the opinion that
Anders Götzsche possesses the following
special competences: International
management and board experience,
expertise in finance and accounting as well
as M&A.
Marianne Henriksen (1961)
Board member (staff representative)
/ 80 shares
Joined the board: 23 March 2022
Re-elected: n.a.
Period of office ends: AGM 2026
Board meeting participation: 9/9
Marianne Henriksen has no managerial or
executive positions in other companies.
Kristian Kristensen (1967)
Board member (staff representative)
/ 115 shares
Joined the board: 23 March 2022
Re-elected: n.a.
Period of office ends: AGM 2026
Board meeting participation: 9/9
Kristian Kristensen has no managerial or
executive positions in other companies.
DFDS Annual Report 2023 Corporate governance 71 / 179
Jill Lauritzen Melby (1958)
Board member / 4,735 shares
Joined the board: 18 April 2001
Re-elected: 2002-2023
Period of office ends: AGM 2024
Member of the Audit Committee
Board meeting participation: 9/9
Committee participation: 6/6
Jill Lauritzen Melby has no managerial or
executive positions in other companies.
The Board of Directors is of the opinion
that Jill Lauritzen Melby possesses
the following special competences:
Expertise in financial control.
Due to family relations to the
company’s principal shareholder,
Lauritzen Fonden, Jill Lauritzen Melby
cannot be considered independent
according to the Recommendations
on Corporate Governance.
Lars Skjold-Hansen (1965)
Board member (staff representative)
/ 1,030 shares
Joined the board: 22 March 2013
Re-elected: 2014-2022
Period of office ends: AGM 2026
Board meeting participation: 9/9
Lars Skjold-Hansen has no managerial or
executive positions in other companies.
Dirk Reich (1963)
Board member / 0 shares
Joined the board: 1 July 2019
Re-elected: 2020-2023
Period of office ends: AGM 2024
Member of the Audit Committee
Board meeting participation: 8/9
Committee participation: 6/6
Chair: Log-hub AG, R+R Holding AG, R+R
International Aviation AG.
Board member: Die Schweizerische Post AG.
The Board of Directors is of the opinion that
Dirk Reich possesses the following special
competences: International management
and board experience, as well as expertise
in international logistics activities.
Torben Carlsen (1965)
President & CEO / 139,676 shares
Appointed: 1 May 2019 (previously CFO of
DFDS since 1 June 2009)
Chair: Copenhagen Infrastructure Partners:
CI II, CI III and CI IV K/S. Gro Capital
Partners: Fund I and II K/S (Chair of the
Investment Committees), Danish Shipping.
Board member: Royal Unibrew A/S.
Karina Deacon (1969)
EVP & CFO / 4,526 shares
Appointed: 1 January 2020. Karina
Deacon resigned from her position in
November 2023 but remains in her
position until no later than June 2024.
Board member and Chair of Audit
Committee: VELUX A/S
Board of Directors continued Executive Board
DFDS Annual Report 2023 Corporate governance 72 / 179
Executive Management Team
Torben Carlsen (1965)
President & CEO
MSc (Finance)
Employed by DFDS since 2009
Karina Deacon (1969)
Executive Vice President & CFO
MSc (Aud)
Employed by DFDS since 2020
Karina Deacon resigned from her position
in November 2023 but remains in her
position until no later than June 2024.
Matthieu Girardin (1982)
Executive Vice President, Ferry Division
ESCP Europe (Master’s in Management),
INSEAD (Executive MBA)
Employed by DFDS since 2022
Niklas Andersson (1973)
Executive Vice President, Logistics Division
Marketing, IHM Business School
Employed by DFDS since 2012
Martin Gade Gregersen (1980)
Senior Vice President, Logistics Division
Freight forwarder
Employed by DFDS since 2021
Anne-Christine Ahrenkiel (1970)
Executive Vice President,
Chief People Officer
MSc (Scient. pol.), Bachelor
in French/Italian
Employed by DFDS since 2019
Rune Keldsen (1979)
Executive Vice President,
Chief Technology Officer
MSc (IT)
Employed by DFDS since 2020
DFDS Annual Report 2023 Corporate governance 73 / 179
Remuneration policy
The remuneration policy aims at enabling
an appropriate remuneration package
for the Executive Board and the Board to
ensure that DFDS can attract, engage, and
retain the right profiles for executive roles.
Further, the policy aims at enabling a total
remuneration approach that links DFDS’
business strategy with the interests of
DFDS’ shareholders, whilst duly considering
the industry dynamics that impact DFDS.
The remuneration policy elements for the
Board and the Executive Board are shown
in the tables to the right on this and the
next page.
The full remuneration policy is
available at dfds.com/en/about/
governance-and-policies.
The purpose of the Remuneration Report
is to present a transparent and compre-
hensive overview of the remuneration
of DFDS’ Executive Board and Board of
Directors (‘Board’) in 2023. The report is
aligned with DFDS’ Remuneration Policy
and with the requirements of Section 139b
of the Danish Company Act. Moreover, the
remuneration is aligned with the Recom-
mendations on Corporate Governance
issued by the Danish Committee on Cor-
porate Governance.
Remuneration Committee
The Remuneration Committee (‘Commit-
tee’) conducted three ordinary meetings
in 2023 in accordance with the planned
annual cycle of activities. Two ad hoc
meetings were in addition held in 2023.
In 2023, the Committee focused on pre
-
paring the 2023 Remuneration Report, and
amending the peer group used for bench-
marking of executive remuneration. The
Committee also engaged in discussions
on the future design of incentive plans,
including how the incorporation of ESG
targets in the incentive plans can contin-
ue to reinforce sustainability priorities.
Remuneration
Remuneration Policy elements, Board of Directors – 2023
What Purpose What and how much
Base Fee – Board To remunerate in relation to the scope and complexity
of work similar to fees in comparable listed companies.
Board members: Base fee.
Chair: Three times the Base Fee.
Vice Chair: Two times the Base Fee.
Directors acceding or resigning during an election
period will receive a pro rata share of the annual fees.
Base Fee – Committee Same as above. Chair of the Audit Committee: 2/3 of the Base Fee.
Other members of the Audit Committee: 1/3 of the Base Fee.
Chair of the Remuneration Committee: 2/15 of the Base Fee.
Chair of the Nomination Committee: 2/15 of the Base Fee.
Other members of the Remuneration and Nomination Committee:
2/15 of the Base Fee.
Ad hoc Fee To remunerate for additional ad-hoc task if agreed by
the Board of Directors.
Fixed fee as per agreement with the Board. To be presented
in the notes to the annual report and/or the remuneration report.
Contributions and
expenses
To cover social security taxes imposed by foreign
authorities on such fees.
To reimburse expenses incurred by the Directors in
connection with board and/or committee meetings.
Reasonable contributions and expenses subject to approval
from the Remuneration Committee.
Insurance To provide the Directors with insurance. The Directors are covered by a customary D&O insurance policy
with coverage deemed sufficient by the Board of Directors
in relation to the size and nature of the business of DFDS.
To the extent that insurance coverage proves insufficient DFDS
may in certain cases cover additional claims.
Pension None None
Incentive plan None Employee-elected members of the Board may receive incentive pay
in their capacity as employees of DFDS.
DFDS Annual Report 2023 Corporate governance 74 / 179
Remuneration continued
Remuneration Policy elements, Executive Board – 2023
Component Purpose Link to performance Size/value of component
Base salary Recognise market value, the nature of the role in
terms of scale, complexity and responsibility and the
Executive Board members’ experience, sustained
performance, and contribution.
Indirectly linked to DFDS’ performance through
the Executive Board member’s sustained performance level.
No pre-defined maximum salary level but determined according
to ‘Purpose’ (ref. explanation to the left).
Short-term
incentive
Reward the achievement of DFDS’ annual goals
guided by the long-term business strategy.
Divided between the following performance areas:
1. DFDS’ financial performance
(e.g., ROIC, Profit before Tax), at least 60%
2. DFDS’ strategic and personal performance
(e.g., sustainability, transformation).
Target: 40% of annual base salary.
Maximum: 80% of annual base salary.
Performance area 1 is evaluated based on meeting the financial targets,
whereas 2 is based on a discretionary assessment by the Board.
Information on measures in any given year will be outlined in the relevant
annual remuneration report.
Long-term
incentive
Reward the achievement of DFDS’ long-term goals through
share-based instruments and support executive retention.
Directly linked to the stock market performance
of DFDS through the share price development.
LTI awards can be awarded up to a maximum of 80%
of annual base salary
Pension Provide for the Executive Board members’
pension related needs.
N/A Equal to level of contributions made for Danish DFDS sala ried employees
(currently 10% of the annual base salary).
Benefits Provide for the Executive Board members’
work-related equipment.
N/A E.g., company car, free telephone/ other devices,
domestic broadband access, newspapers.
Termination Apply termination conditions to the Executive
Board member aligned with general market
conditions for the role.
N/A Executive Board member: Six months’ notice in case of resignation.
DFDS: Twelve months’ notice in case of termination.
DFDS Annual Report 2023 Corporate governance 75 / 179
Reporting framework
DFDS’ ESG reporting has been prepared
in accordance with the Danish Financial
Statements Act, sections 99a, 99b, and
107d. Other ESG frameworks and best prac-
tices have been applied to the reporting:
• The ESG Statement has been mapped in
accordance with NASDAQ ESG indicators.
• Recommendations from the Taskforce
on Climate-related Financial Disclosures
(TCFD) have been applied to incorporate
a climate change scenario into the risk
management process.
• ESG data is presented in line with the
SASB Marine Transportation Industry
Standard.
Scope of consolidation
The accounting policies have been applied
consistently in the preparation of the con-
solidated ESG statement for all the years
presented unless stated otherwise.
The consolidation of greenhouse gas
emissions is based on operational con-
trol, and all
CO
2
data are calculated and
presented in accordance with the GHG
protocol. Some locations are leased with
"all inclusive” on utilities, which means that
activity-based data is not always available.
Health & Safety monitoring and LTIF-re-
porting covers DFDS employees on land,
and all crew working on the vessels.
Fatalities are registered for all staff and
third-party operators (contractors) working
on DFDS premises.
Changes in calculations from
previous year
Environment
In 2023, we added KPIs for air quality.
Calculation methods are presented below.
Social
In 2023 we added KPIs for employee
engagement and attrition. Calculation
methods are presented below.
Governance
None.
* 2023 ESG data excludes
Estron Group (acquired
September 2023
** 2022 ESG data excludes
the acquisition of Lucey
Transport Logistic.
*** 2021 ESG data excludes
the acquisition HSF
Logistics Group.
**** 2019 ESG data excludes
the acquisition Un Ro-Ro.
- Data not available
ESG data and accounting policies
Nasdaq ESG
indicator Environmental Unit 2023* 2022** 2021*** 2020 2019****
CO
2
e emissions
E1.1 Scope 1 emissions (CO
2
e) 1,000 tonnes 2,566 2,697 2,544 2,014 2,253
E1.2 Scope 2 emissions location based (CO
2
e) 1,000 tonnes 12.1 7.9 6.9 6.0 7.3
E1.2 Scope 2 emissions market based (CO
2
e) 1,000 tonnes 11.8 14.2 - - -
E1.3 Scope 3 emissions (CO
2
e) 1,000 tonnes 1,055 1,203 909 - -
Total CO
2
e emissions (scope 1, 2 - location
based - and 3) 1,000 Tonnes 3,633 3,908 3,460 2,020 2,260
Other emissions
Nitrogen Oxides (NOx) 1,000 tonnes 52.1 55.5 - - -
Sulphur Dioxides (SOx) 1,000 Tonnes 4.6 5.5 - - -
Particulate Matter (PM10) 1,000 Tonnes 2.9 3.2
Energy consumption
E3.1 Marine fuel Tonnes 751,178 818,911 771,738 619,867 699,115
E3.1 Diesel 1,000 litre 82,910 48,866 25,447 24,767 19,420
E3.1 Biofuels (HVO & B100) 1,000 litre 1,300 3,288 1,236 1,150 573
E3.1 Electricity MWh 56,270 36,091 31,099 36,680 36,633
E3.1 , E5 Electricity generated MWh 1,262 1,562 - - -
E3.1 Total energy consumption 1,000 TJ 34.2 36.0 33.9 26.9 30.0
Energy efficiency
E2.1 Emissions per GT mile - Own fleet (CO
2
) gCO
2
12.1 12.5 12.8 13.4 13.9
E2.1 Emissions per GT mile - Route network (CO
2
) gCO
2
12.3 13.0 13.5 13.5 14.1
E2.1 CO
2
intensity kg CO
2
/ MDKK 94.4 102.4 148.0 144.6 136.2
E4
Electricity and heating consumption per
land-based FTE mWh 6.0 6.3 7.0 6.3 7.4
Other environmental data
Spills (>1 barrel) Number 0 0 0 1 0
E6.1 Water m
3
256,169 248,998 - - -
E6.2 Water - recycled m
3
19,708 27,046 - - -
Waste Tonnes 5,724 3,408 - - -
Waste - recycled Tonnes 4,323 2,524 - - -
DFDS Annual Report 2023 ESG data 77 / 179
* 2023 ESG data excludes
Estron Group (acquired
September 2023
** 2022 ESG data excludes
the acquisition of Lucey
Transport Logistic.
*** 2021 ESG data excludes
the acquisition HSF
Logistics Group.
**** 2019 ESG data excludes
the acquisition Un Ro-Ro.
- Data not available
Nasdaq ESG
indicator Social Unit 2023* 2022** 2021*** 2020 2019****
Wellbeing
Employees engagement - score 7.7 7.7 - - -
Employees engagement - Participation rate % 67 69 - - -
Attrition (Landbased) % 16.5 18.2 - - -
Representation of women
S4.1 Total workforce % 23 24 24 23 25
S4.1 - Non-office based % 11 12 - - -
S4.1 - Office based % 44 43 - - -
S4.3 Senior management % 18 16 17 16 19
S4.2 Managers % 18 16 14 13 18
Health & Safety
S7 Lost-time injury frequency (LTIF) /Sea
Incidents/mil. hours
3.8 4.5 4.3 4.1 4.5
S7 Lost-time injury frequency (LTIF)/Land
Incidents/mil. hours
8.1 7.9 7.4 5.9 6.7
Fatalities - Colleagues Fatalities 0 1 1 0 0
Fatalities - Contractors Fatalities 0 0 0 2 1
Nasdaq ESG
indicator Governance Unit 2023* 2022** 2021*** 2020 2019****
G1.1
Board representation of women
(AGM elected members) % 33 33 33 33 33
G2.2 Independent directors (AGM elected members) % 83 83 83 83 83
Board nationality - non Danish
(AGM elected members) % 33 33 17 17 17
Attendance at board meetings
(all board members) % 99 99 100 96 94
S1 CEO Pay ratio Ratio 39 37 35 27 29
Reported whistleblower cases Cases 51 33 29 24 18
Environment
CO
2
e emissions
Scope 1 emissions (CO
2
e): All direct emission
sources where DFDS has operational control as
defined by the Green House Gas Protocol. This
includes all use of fossil fuels for stationary com-
bustion or transportation in owned, leased, or
rented assets. It also includes process emissions.
Scope 2 emissions – location based (CO
2
e): All
indirect emissions related to purchased energy;
electricity or heating/cooling where DFDS has
operational control as defined by the Green-
house Gas Protocol – calculated based on the
emission intensity of the local grid area where
the electricity usage occurs.
Scope 2 emissions – market based (CO
2
e): All
indirect emissions related to purchased energy;
electricity or heating/cooling where DFDS has
operational control as defined by the Green-
house Gas Protocol – calculated based on
electricity consumption including contractual
purchases of renewable energy.
Scope 3 emissions (CO
2
e): Emissions related to
procured goods and services (category 1), capital
goods (category 2), fuel- and energy-related
emissions (category 3), upstream transportation
and distribution (category 4), and business travel
(category 6). The emission categories are selected
based on a materiality assessment of all 15 cate
-
gories within GHG accounting standard for scope
3. Scope 3 emissions are based on spend data
and calculated using AI software from an external
provider, except for fuel, for which emissions
are calculated based on actual consumption.
Total CO
2
e emissions: Complete GHG inventory
– includes both scope 1, scope 2, and scope 3.
Energy consumption
Marine fuel: Total consumption of heavy fuel
oil (HFO), light fuel oil (LFO), and marine gas oil
(MGO) per nautical mile for ferries in operation.
Diesel: Total consumption of diesel for
trucks, terminal equipment, company cars,
and other vehicles.
Biofuels (HVO & B100): Total consumption
of biofuels for trucks, terminal equipment,
and vessels.
Electricity: Total consumption of electricity in
locations where DFDS has financial control of
the utility. Shore power is included in the total.
Total energy consumption: Energy consumed
from scope 1 and 2 energy sources. Includes
both land-based energy consumption and
vessels’ energy consumption.
Energy efficiency
CO
2
emissions per GT mile (Own fleet): Emis-
sions measured as gCO
2
per gross tonnage
nautical mile for owned ferries in operation.
CO
2
emissions per GT mile (Route network):
Emissions measured as gCO
2
per gross
tonnage nautical mile for ferries operating
the route network.
CO
2
e intensity: Total CO
2
emissions (scope 1+2)
in kilogram per MDKK of revenue generated.
Electricity & heating consumption per landbas-
ed FTE: Indirect energy consumption (scope 2)
in operational activities for offices, warehouses,
and terminals, divided by average FTEs on land.
§ ESG definitions and
accounting policies
DFDS Annual Report 2023 ESG data 78 / 179
Other environmental data
Air quality
Nitrogen Oxides (NOx): Amount of NOx suspended in the
air by our transportations. Calculated by multiplying fuel
consumption (Marine Gas Oil, Bunkered fuel oil and Diesel)
by pollutant specific emission factor. When quantifying the
NOx, we have accounted for the effects of our scrubbers.
Sulphur dioxide (SOx): Amount of SOx suspended in the air
by our transportations. Calculated by multiplying fuel con
-
sumption (Marine Gas Oil, Bunkered fuel oil and Diesel) by
pollutant specific emission factor. When quantifying the
SOx we have accounted for the effects of our scrubbers.
Particulate Matter (PM10): Particulate matter (with dia-
meter less than 10 micrometre) suspended in the air from
our transportation. Calculated by multiplying fuel con
-
sumption (Marine Gas Oil, Bunkered fuel oil and Diesel) by
pollutant specific emission factor. When quantifying the
PM10 we have accounted for the effects of our scrubbers.
The calculations for the measured air pollutants are
in accordance with industry standards published by
Stockholm Environmental Institute.
Spills (> 1 barrel): Incidents of oil spills larger than one
barrel from ferries in operation.
Waste: Tonnes of waste generated by land- based
locations.
Waste – recycled: Total weight of waste recycled by
land-based locations.
Water: Square meters of water consumed by land-
based locations.
Water – recycled: Total volume of water recycled by
land-based locations.
Social
Employee wellbeing
Engagement participation rate: Percentage of
employees that have completed the engagement
surveys. The invitations were sent to all employees.
Engagement score: Engagement refers to the com-
mitment and enthusiasm employees demonstrate to-
wards their work and organisation. The engagement
score is the average score given by respondents in the
annual employee engagement survey.
Attrition (land-based) rate: The percentage of
employees that have left DFDS on their own accord.
Representation of women
Gender-related data are based on head count by
year end.
Total workforce: Percentage of women head count.
Non-office based: Percentage of women head count
in non-office based positions.
Office based: Percentage of women head count in
office positions.
Senior Management: Percentage of women in senior
management positions, defined as EVPs and VPs.
Managers: Percentage of women head count in man-
agement positions, excluding senior management,
defined as positions with responsibility for at least
one employee.
Employees: Percentage of women head count,
excluding senior management and managers.
Health & Safety
Health & Safety monitoring and LTIF-reporting covers
DFDS employees on land, and all crew working on the
vessels. Fatalities are registered for all staff and for
third-party operators (contractors) working on DFDS
premises.
Lost-time injury frequency (LTIF) - Sea: Number of
registered work-related accidents disabling a seafarer
to work for more than 24 hours per one million exposure
hours.
Lost-time injury frequency (LTIF) - Land: Number of reg
-
istered work-related accidents disabling a land-based
employee work for more than 24 hours per one million
exposure hours.
Fatalities
Colleagues: Number of fatalities among employees
caused by work-related accidents.
Contractors: Number of fatalities among third-party
contractors caused by work-related accidents while
operating for DFDS.
Governance
Whistleblower data is received from an external
partner ensuring anonymity and confidentiality.
Representation of women on Board of Directors:
Percentage of women among the total number of
members of the Board of Directors, excluding employ-
ee elected members.
Independent directors: The ratio of shareholder elect-
ed directors that are deemed independent according
to the Danish recommendations on good corporate
governance, excluding employee elected members.
Board nationality – non-Danish: The ratio of share-
holder elected directors with a non-Danish back-
ground, excluding employee elected members.
Attendance at board meetings: Percentage
of total number of Board meetings attended.
(Not gender specific)
CEO Pay ratio: Total CEO remuneration including
granted LTI divided by average total remuneration
for all employees in the company except the Execu-
tive Board.
Reported whistleblower cases: The number of cases
reported through the DFDS whistleblower line in the
reporting year.
DFDS Annual Report 2023 ESG data 79 / 179
The taxonomy is a classification and
reporting system that identifies sustain-
able economic activities. It is a keystone
in the EU’s sustainable finance framework
and an essential tool for market transpar-
ency. According to the regulation DFDS is
required to disclose the proportion of our
activities that are taxonomy-eligible and
taxonomy-aligned in terms of revenue, cap-
ital expenditures (CapEx), and operating
expenditures (OpEx).
DFDS’ Taxonomy-related disclosures have
been assessed and prepared in accor-
dance with Regulation (EU) 2020/852 of the
European Parliament and of the Council of
18 June 2020.
Eligible economic activities
In 2023 we have made a high-level assess-
ment of eligibility of the new environmental
objectives and concluded that they are less
relevant to DFDS business and organisa-
tion. As such climate change mitigation
continues to be our area of contribution.
In determining the activities to include in
the EU Taxonomy report, our methodology
is rooted in a high-level analysis of our core
service offerings. We have chosen activities
that directly represent the focal points of our
operations, ensuring relevant and impactful
reporting. Our ocean transport operations
are represented through activity 6.10,
covering our vessels, and 6.16, covering our
terminal operations. For logistics solutions
on land, we are covering freight by truck
through activity 6.6 and by rail through
activity 6.2. Finally, we are including activity
7.7 to cover our ownership of warehouses
and office buildings, hence representing the
entire scope of our business.
In 2023, the taxonomy-eligible share of our
revenue was 84% (2022: 80%). The taxono-
my-eligible share of operational expenses
(OpEx) was 100% (2022: 100%), whereas
the taxonomy-eligible share of capital ex-
penditures (CapEx) was 96% (2022: 96%).
Note that we in 2022 additionally reported
on the economic activity 6.12 Retrofitting of
sea and costal freight and passenger water
transport. After a reassessment of the ap-
plicability of our operations and the activity
description, we have excluded the activity.
While we do make smaller technical adjust-
ments and updates to our own vessels, we
do not retrofit vessels in accordance with the
described activity. The eligible share of 6.12
is now included in 6.10 and the figures have
been restated in the table.
Aligned economic activities
DFDS has analysed its compliance level
with the technical screening criteria and the
Do-No-Significant-Harm (DNSH) criteria
for the above-mentioned activities. Our
assessment shows alignment within 4 eco-
nomic activities.
In 2023 we report alignment on revenue,
OpEx and CapEx. Alignment has been
determined to 30% for revenue (2022: 0%),
53% for OpEx (2022: 0%) and 17% for CapEx
(2022: 5%).
Revenue linked to aligned activities com-
prise freight transport by rail (DKK 691m),
revenue derived from qualifying vessels
(DKK 7,479m) as well as revenue generat-
ed by qualifying e-trucks (DKK 1m)-trucks
started operating in Q4.
Aligned OpEx constitutes maintenance and
servicing cost for qualifying owned ships
(DKK 299m).
CapEx linked to aligned activities in-
clude construction, improvements and
lease extensions for office buildings and
warehouses (DKK 142m), investments
and improvements in qualifying ves -
sels (DKK 625m) as well as qualifying
EU Taxonomy
DFDS taxonomy reporting
Units 2023 2022
Revenue
Aligned DKK million 8,172 0
Aligned % 30 0
Eligible, non-aligned DKK million 14,711 21,482
Eligible, non-aligned % 54 80
Total 27,304 26,873
OpEx
Aligned DKK million 299 0
Aligned % 53 0
Eligible, non-aligned DKK million 263 538
Eligible, non-aligned % 47 100
Total 562 538
CapEx
Aligned DKK million 779 325
Aligned % 17 5
Eligible, non-aligned DKK million 3,588 5,381
Eligible, non-aligned % 79 90
Total 4,552 5,969
e-trucks acquisitions (DKK 11m). No
additions related to acquisitions were
considered aligned.
The increase in alignment is a result of
alignment with the following economic
activities 6.2, 6.6, 6.10 and 7.7. Below we
describe why we considered the mentioned
activities aligned.
6.2 Freight rail transport
For freight rail transport all transport ac-
tivity align with the criteria as it is carried
out by electric locomotives. Based on third
party documentation, the trains follow the
European emission consumption regulations
(2016/1628) and the international waste hi-
erarchy principles. The alignment accounts
for 3% of our total revenue (2022: 0%).
DFDS Annual Report 2023 ESG data 80 / 179
6.6 Freight transport services by road
During 2023 we have deployed 90 E-trucks
in our operations of which five meet the cri-
teria. As such the alignment within revenue
and CapEx is just above 0% (2022: 0%).
While we during 2023 have focused on im-
plementing the E-trucks in our operations,
we will be reviewing our practices and poli-
cies for the E-truck fleet to ensure a greater
alignment with the criteria of sustainable
freight transport by road.
6.10 Freight water transport
For freight water transport we report a 27%
(2022: 0%) alignment for revenue, 53%
(2022: 0%) alignment for OpEx and 14%
(2022: 0%) alignment for CapEx. The align-
ment is a result of revenue from contracts
with customers (DKK 7,479m). 27 of our ves-
sels are exclusively operating coastal and
short sea services designed to enable the
modal shift of freight on land to sea. Our
sea freight produces lower CO
2
emissions
than the average reference CO
2
emission
defined for heavy vehicles in accordance
with Article 11 of Regulation 2109/1242. In
addition, 13 of our vessels have an attained
value below the Energy Efficiency Design
Index (EEDI) or Energy Efficiency Existing
Ships Index (EEXI) value which we con-
sider an equivalent. Note that for vessels
built before 2013 we have used the Energy
Efficiency Existing Ships Index (EEXI) to
calculate the C02 emissions value.
To ensure that we are meeting requirements
of the standard we have only included ves-
sels operating under EU legislation.
Note that this is a transitional alignment
that applies until 2025 (subsequently lower
alignment is expected due to updated
requirements).
7.7 Acquisition and ownership of buildings
For acquisition and ownership of build-
ings we report 3% (2022: 5%) alignment
for CapEx as 3 of our owned and leased
buildings live up to the energy performance
requirements of the regulation.
Looking forward
As the taxonomy-alignment requirements
are still evolving, we expect our taxonomy
reporting to continue developing. We will
review our CapEx plan in light of the taxono-
my requirements to potentially include more
eligible activities as aligned.
The EU Taxonomy is a classification and reporting
system that identifies sustainable economic
activities. Companies shall in accordance with the
Disclosure Delegated Act report the share of the
taxonomy-eligible and taxonomy aligned-activities
in regards of revenue, capital expenditures (CapEx),
and operating expenditures (OpEx). This accounting
policy explains the methodology used to identify
eligible and aligned activities as well as calculate
revenue, CapEx and OpEx. From 2023 the eligible
activities are subject to analysis on whether the
related economic activities are making a substan-
tial contribution to at least one of the six climate
and environmental objectives, while also doing no
significant harm to the remaining climate and envi
-
ronmental objectives and complying with minimum
standards on human rights and labour standards.
As the taxonomy framework and reporting
practice develops DFDS will review and update its
reporting of taxonomy KPIs and related account-
ing policies accordingly. This may also impact the
KPIs reported historically.
Identification of taxonomy eligible
and aligned economic activities
We have determined the taxonomy-eligible
economic activities (the numerator for the tax
-
onomy-eligible KPIs) by the following process:
• Identifying economic activities and process-
es across the business of the DFDS Group.
• Evaluating whether the identified economic activ-
ities in the DFDS Group are covered by the econom
-
ic activity descriptions included in the taxonomy.
We have determined the taxonomy-aligned
economic activities (the numerator for the taxon-
omy-alignment KPIs) by the following process:
• Assessing the substantial contribution to the
climate and environmental objectives (Techni-
cal screening criteria) per eligible activity.
• Evaluating the “Do No Significant Harm”
(‘DNSH’) criteria per eligible activity.
• Determining compliance with the minimum
safeguards.
Calculations
The taxonomy-eligible KPIs have been calculated
as followed:
• Eligible Revenue KPI= Eligible Revenue /
Total Revenue
• Eligible OpEx KPI= Eligible OpEx /
Total OpEx as defined by the EU Commission
• Eligible CapEx KPI= Eligible CapEx / Total CapEx
The taxonomy-alignment KPIs have been calculat-
ed as followed:
• Aligned Revenue KPI = Aligned Revenue /
Total Revenue
• Aligned OpEx KPI= Aligned OpEx /
Total OpEx as defined by the EU Commission
• Aligned CapEx KPI= Aligned CapEx / Total CapEx
The denominator for the taxonomy KPIs has been
determined as followed:
• Total Revenue is aligned with note 2.2 Revenue
• Total OpEx is aligned with the OpEx definition
by the EU Commission, which covers direct ex-
penditures relating to the day-to-day servicing
of assets or property, plant and equipment
• Total CapEx is defined as additions to tangible
and intangible assets reported in note 3.1.1
Non-current intangible assets (excluding Good-
will since not defined as an intangible asset, cf.
IAS 38), note 3.1.2 Noncurrent tangible assets
and note 3.1.3 Leases. Reconciling to line
items: addition on acquisition of enterprises,
additions (except for development projects
and assets under construction), transfers (only
from development projects and assets under
construction), addition/remeasurement.
Double counting: DFDS has no economic activities
that contributes to several environmental objectives.
DFDS has ensured that allocation to Revenue, OpEx
and CapEx KPIs across identified economic activi
-
ties are not double counted. This has been verified
by enabling controls such as reconciling the taxono
-
my KPIs to the consolidated financial statements.
Disaggregation of KPIs: The identified economic
activities are not subject to disaggregation of
taxonomy KPIs.
Do no significant harm
For each eligible criteria we have assessed wheth
-
er the economic activity has a negative impact on
any of the other climate and environmental ob
-
jectives (climate change adaptation, sustainable
use and protection of water and marine resources,
transition to a circular economy, pollution preven
-
tion and control, and protection and restoration of
biodiversity and ecosystems). We have assessed
each activity’s alignment with every DNSH criteria
by either, investigating internally if our operations
comply with the stated criteria, or if we are com
-
plying with other EU regulations and environmental
standards. We only report alignment for economic
activities when we have reliable data proving that
no negative impacts have been identified.
Minimum safeguards
Our economic activities are carried out in compliance
with the Minimum Safeguards. DFDS has policies and
processes in place to ensure that human rights are
respected within our own operations as well as the
value chain, including third-party workers, hauliers,
and seafarers. As such we comply with the minimum
labour and human rights standards. Taxation is
governed by our Group Tax Policy. The foundation on
how DFDS makes decisions and interacts with stake
-
holders is described in our Code of Conduct, which
also includes how we deal with fair competition and
bribery/corruption. Find further information and links
to the above policies in the ESG review section.
§ Accounting policies – EU taxonomy
DFDS Annual Report 2023 ESG data 81 / 179
Proportion of revenue from products or services associated with taxonomy-aligned economic activities 2023
Substantial contribution criteria DNSH criteria ('Does Not Significantly Harm')
Proportion of
taxonomy-
aligned or
eligible of
revenue, 2022
Category
(enabling
activity or
transitional
activity)Revenue
Proportion
of Revenue
Climate
change
miti gation
Climate
change
adaptation
Water and
marine
resources Pollution
Circular
economy
Biodiversity
and eco -
systems
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources Pollutions
Circular
economy
Biodiversity
and eco -
systems
Minimum
safeguards
Economic activities Code(s) DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N Percent E/T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy aligned)
Freight rail transport CCM 6.2 691 3 Y N N/EL N/EL N/EL N/EL N/A Y N/A Y Y N/A Y 0 T
Freight transport services by road CCM 6.6 1 0 Y N N/EL N/EL N/EL N/EL N/A Y N/A Y Y N/A Y 0 T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 7,479 27 Y N N/EL N/EL N/EL N/EL N/A Y Y Y Y Y Y 0 T
Revenue of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 8,172 30 30 0 - - - - N/A Y N/A N/A N/A N/A Y 0
Of which enabling - 0 0 - - - - - N/A 0 E
Of which transitional 8,172 30 30 - - - - - N/A 0 T
A.2 Taxonomy-Eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Freight rail transport CCM 6.2 - 0 EL EL N/EL N/EL N/EL N/EL 2
Freight transport services by road CCM 6.6 11,521 42 EL EL N/EL N/EL N/EL N/EL 40
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 2,605 10 EL EL N/EL N/EL N/EL N/EL 34
Infrastructure enabling low-carbon water transport CCM 6.12 584 2 EL EL N/EL N/EL N/EL N/EL 3
Acquisition and ownership of buildings CCM 7.7 - 0 EL EL N/EL N/EL N/EL N/EL -
Revenue of Taxonomy-eligible but not environmen-
tally sustainable activities (not Taxonomy-aligned
activities) (A.2)
14,711 54 54 0 0 0 0 0 80
Total (A.1+B.2) 22,882 84
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Revenue of Taxonomy- non-eligible activities (B) 4,422 16
Total (A+B) 27,304 100
Y Yes (taxonomy-eligible and taxonomy-aligned activity with the relevant environment objective)
N No (taxonomy-eligible and taxonomy-aligned activity with the relevant environment objective)
N/EL Not eligible (taxonomy-non-eligible activity for the relevant environment objective)
DFDS Annual Report 2023 ESG data 82 / 179
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities 2023
Substantial contribution criteria DNSH criteria ('Does Not Significantly Harm')
Proportion of
taxonomy-
aligned or
eligible of
OpEx, 2022
Category
(enabling
activity or
transitional
activity)OpEx
Proportion
of OpEx
Climate
change
miti gation
Climate
change
adaptation
Water and
marine
resources Pollution
Circular
economy
Biodiversity
and eco -
systems
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources Pollutions
Circular
economy
Biodiversity
and eco -
systems
Minimum
safeguards
Economic activities Code(s) DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N Percent E/T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy aligned)
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 299 53 Y N N/EL N/EL N/EL N/EL N/A Y Y Y Y Y Y 0 T
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 299 53 53 0 - - - - N/A Y N/A N/A N/A N/A Y 0
Of which enabling 0 0 - - - - - N/A 0 E
Of which transitional 53 53 - - - - - N/A 0 T
A.2 Taxonomy-Eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Freight rail transport CCM 6.2 - 0 EL EL N/EL N/EL N/EL N/EL -
Freight transport services by road CCM 6.6 - 0 EL EL N/EL N/EL N/EL N/EL -
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 263 47 EL EL N/EL N/EL N/EL N/EL 100
Infrastructure enabling low-carbon water transport CCM 6.16 - 0 EL EL N/EL N/EL N/EL N/EL -
Acquisition and ownership of buildings CCM 7.7 - 0 EL EL N/EL N/EL N/EL N/EL -
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (A.2)
263 47 47 0 0 0 0 0 100
Total (A.1+B.2) 562 100
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities (B) 0 0
Total (A+B) 562 100
Y Yes (taxonomy-eligible and taxonomy-aligned activity with the relevant environment objective)
N No (taxonomy-eligible and taxonomy-aligned activity with the relevant environment objective)
N/EL Not eligible (taxonomy-non-eligible activity for the relevant environment objective)
DFDS Annual Report 2023 ESG data 83 / 179
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities 2023
Substantial contribution criteria DNSH criteria ('Does Not Significantly Harm')
Proportion of
taxonomy-
aligned or
eligible of
CapEx, 2022
Category
(enabling
activity or
transitional
activity)CapEx
Proportion
of CapEx
Climate
change
miti gation
Climate
change
adaptation
Water and
marine
resources Pollution
Circular
economy
Biodiversity
and eco -
systems
Climate
change
mitigation
Climate
change
adaptation
Water and
marine
resources Pollutions
Circular
economy
Biodiversity
and eco -
systems
Minimum
safeguards
Economic activities Code(s) DKK million % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N Percent E/T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities
(Taxonomy aligned)
Freight transport services by road CCM 6.2 11 0 Y N N/EL N/EL N/EL N/EL N/A Y N/A Y Y N/A Y 0 T
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 625 14 Y N N/EL N/EL N/EL N/EL N/A Y Y Y Y Y Y 0 T
Acquisition and ownership of buildings CCM 7.7 142 3 Y N N/EL N/EL N/EL N/EL N/A Y N/A N/A N/A N/A Y 5 N/A
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 779 17 17 0 - - - - N/A Y N/A N/A N/A N/A Y
Of which enabling 0 0 - - - - - N/A 0 E
Of which transitional 14 14 - - - - - N/A 0 T
A.2 Taxonomy-Eligible but not
environmentally sustainable activities
(not Taxonomy-aligned activities)
Freight rail transport CCM 6.2 - 0 EL EL N/EL N/EL N/EL N/EL 0
Freight transport services by road CCM 6.6 1,336 29 EL EL N/EL N/EL N/EL N/EL 15
Sea and coastal freight water transport, vessels
for port operations and auxiliary activities CCM 6.10 1,290 28 EL EL N/EL N/EL N/EL N/EL 64
Infrastructure enabling low-carbon water transport CCM 6.16 346 8 EL EL N/EL N/EL N/EL N/EL 6
Acquisition and ownership of buildings CCM 7.7 616 14 EL EL N/EL N/EL N/EL N/EL 6
CapEx of Taxonomy-eligible but not environmen-
tally sustainable activities (not Taxonomy-aligned
activities) (A.2)
3,588 79 79 0 0 0 0 0 90
Total (A.1+B.2) 4,366 96
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities (B) 186 4
Total (A+B) 4,552 100
Y Yes (taxonomy-eligible and taxonomy-aligned activity with the relevant environment objective)
N No (taxonomy-eligible and taxonomy-aligned activity with the relevant environment objective)
N/EL Not eligible (taxonomy-non-eligible activity for the relevant environment objective)
DFDS Annual Report 2023 ESG data 84 / 179
SASB Marine Transportation Industry Standard
- Sustainability Disclosures & Activity Metrics
The scope of the SASB reporting is limited
to operations of vessels for which DFDS
holds the Document of Compliance. This
includes all our owned vessels as well as
the following vessels that are in our fleet
through bareboat charters: Cote D'Albatre,
Cote Des Dunes, Cote Des Flandres, Cote
D'Opale, Fadiq, Paqize, Regina Seaways,
Flandria Seaways, Humbria Seaways,
Scandia Seaways and Seven Sisters.
Please note that since these SASB standards
are specific to the Marine Transportation in-
dustry, the disclosures differ from other ESG
data in this report. The SASB disclosures do
not consider DFDS' business areas outside
of Marine Transportation, including items
such as trucking, ware housing, offices, etc.
* Data unavailable.
Assessment of feasibility
of disclosure is ongoing.
** As most of DFDS'
vessels fall within the
RoRo-category, it is
not applicable to track
TEU capacity.
Topic
Accounting metric 2023 2022 Unit of measure Code
Greenhouse Gas
Emissions
Gross global Scope 1 emissions (vessels only) 2,159,142 2,185,043 Metric tonnes CO
2
e TR-MT-110a.1
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions,
emissionsreduction targets, and an analysis of performance against those targets
AR 2023
p. 21 - 25
AR 2022
p. 25-29
TR-MT-110a.2
(1) Total energy consumed 28,422,561 28,932,354 Gigajoules (GJ) TR-MT-110a.3
(2) percentage heavy fuel oil 89% 87% Percentage (%) TR-MT-110a.3
(3) percentage renewable 0.03% 0.3% Percentage (%) TR-MT-110a.3
Average Energy Efficiency Design Index (EEDI) for new ships No new ships 14.75 gCO
2
per ton-nm TR-MT-110a.4
Air Quality Nitrogen Oxides (NOx) 45,929 45,954 Metrictonnes (t) TR-MT-120a.1
Sulphur Dioxides (SOx) 3,609 3,458 Metrictonnes (t) TR-MT-120a.1
Particulate matter (PM10) 2,640 2,613 Metrictonnes (t) TR-MT-120a.1
Ecological Impacts Shipping duration in marine protected areas or areas of protected conservation status * * # of days travelled TR-MT-160a.1
Percentage of fleet implementing ballast water (1) exchange 9% 21% Percentage (%) TR-MT-160a.2
(2)treatment 91% 79% Percentage (%) TR-MT-160a.2
Number of spills and releases to the environment 0 0 # of spills TR-MT-160a.3
Aggregate volume of spills and releases to the environment 0 0 Cubic meters (m) TR-MT-160a.3
Employee Health
& Safety
Lost time incident rate/frequency (LTIR/LTIF) 3.8 4.5 Rate TR-MT-320a.1
Business Ethics Number of calls at ports in countries that have the 20 lowest rankings in Transparency
International’s Corruption Perception Index
0 0 # of calls TR-MT-510a.1
Total amount of monetary lossesas a result oflegal proceedings associated with
bribery or corruption
0 0 DKK TR-MT-510a.2
Accident & Safety
Management
Number of marine casualties 3 8 # of casualties TR-MT-540a.1
Percentage of which classified as very serious 0 0 Percentage (%) TR-MT-540a.1
Number of Conditions of Class or Recommendations 44 59 # of Class or Recommendations TR-MT-540a.2
Number of port state control
(1) deficiencies 65 121 # of deficiencies TR-MT-540a.3
(2) detentions 0 0 # of detentions TR-MT-540a.3
Activity Metrics Number of shipboard employees 3,931 3,810 # of employees TR-MT-000.A
Total distance travelled by vessels 5,097,839 5,077,920 Nautical miles (nm) TR-MT-000.B
Operating days 12,898 12,791 # of operating days TR-MT-000.C
Deadweight tonnage 603,993 603,993 Thousand deadweight tonnes TR-MT-000.D
Number of vessels in total shipping fleet 57 57 # of vessels TR-MT-000.E
Number of port calls 29,439 29,814 # of port calls TR-MT-000.F
Twenty-foot equivalent unit (TEU) capacity ** ** TEU TR-MT-000.G
DFDS Annual Report 2023 ESG data 85 / 179
Task Force on Climate-Related
Financial Disclosures (TCFD)
The TCFD – index displays where informa-
tion regarding our disclosure recommended
by the Task Force on Climaterelated Disclo-
sure can be found.
Theme
Recommendations Annual report 2023 pages
Governance
Disclose the organisations governance around
climate-related risks and opportunities.
a) Describe the board’s oversight of climate-related risks and opportunities.
DFDS Enterprice Risk Management, p. 64 - 67
b) Describe management’s role in assessing and managing climate-related
risks and opportunities.
ESG approach, p. 22 - 30
DFDS Enterprice Risk Management, p. 64 - 67
Strategy
Disclose the actual and potential impacts of climate-
related risks and opportunities on the organizations
businesses. Strategy, and financial planning where
such information is material.
a) Describe the climate-related risks and opportunities the organization
has identified over the short, medium, and long term.
DFDS Enterprice Risk Management, p. 64 - 67
b) Describe the impact of climate-related risks and opportunities on
the organization’s businesses, strategy, and financial planning
ESG approach, p. 22 - 30
DFDS Enterprice Risk Management, p. 64 - 67
c) Describe the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios, including a 2°C
or lower scenario.
DFDS Enterprice Risk Management, p. 64 - 67
Risk Management
Disclose how the organisation identifies, assesses
and manages climate-related risks.
a) Describe the organization’s processes for identifying and assessing
climate-related risks.
DFDS Enterprice Risk Management, p. 64 - 67
b) Describe the organization’s processes for managing climate-related risks. ESG approach, p. 22 - 30
DFDS Enterprice Risk Management, p. 64 - 67
c) Describe how processes for identifying, assessing, and managing
climate-related risks are integrated into the organization’s overall
risk management.
ESG approach, p. 22 - 30
DFDS Enterprice Risk Management, p. 64 - 67
Metrics and Targets
Disclose the metrics and targets used to asses
and manage relevant climate-related risks and
opportunities where such information is material.
a) Disclose the metrics used by the organization to assess climate-related risks
and opportunities in line with its strategy and risk management process.
ESG review, p. 54 - 57
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks.
ESG review, p. 54 - 57
c) Describe the targets used by the organization to manage climate-related
risks and opportunities and performance against targets.
ESG review, p. 54 - 57
DFDS Annual Report 2023 ESG data 86 / 179
Income statement 1 January – 31 December
DKK million Note 2023 2022
Revenue 2.1, 2.2 27,304 26,873
Costs:
Ferry and other ship operation and maintenance 2.3 -5,485 -6,426
Port terminal operations -3,264 -3,090
Transport solutions and warehouse solutions -6,743 -6,657
Employee costs 2.4 -5,572 -4,726
Cost of sales, general and administration -1,206 -1,000
Operating profit before depreciation and amortisation (EBITDA) 5,034 4,974
Share of profit/loss of associates and joint ventures -26 -14
Profit on disposal of non-current assets, net 111 14
Depreciation and impairment on tangibles and right-of-use assets 2.5 -2,615 -2,371
Operating profit before amortisation (EBITA) 2,504 2,603
Amortisation and impairment losses, intangibles 2.5 -178 -135
Operating profit (EBIT) 2,326 2,468
Financial income 4.4 80 80
Financial costs 4.4 -753 -409
Profit before tax 1,652 2,139
Tax on profit 2.6 -148 -120
Profit for the year 1,505 2,019
Profit for the year is attributable to:
Equity holders of DFDS A/S 1,501 2,010
Non-controlling interests 3 10
Profit for the year 1,505 2,019
Earnings per share 4.8
Basic earnings per share (EPS) of DKK 20, DKK 26.64 35.09
Diluted earnings per share (EPS-D) of DKK 20, DKK 26.58 35.04
Proposed profit appropriation
Proposed dividends DKK 3.00 per share
1
(2022: DKK 5.00 per share)
Statement of comprehensive income 1 January – 31 December
DKK million Note 2023 2022
Profit for the year 1,505 2,019
Other comprehensive income
Items that will not subsequently be reclassified to the income statement:
Remeasurement of defined benefit pension obligations 3.2.4 -21 -46
Tax on items that will not be reclassified to the income statement 2.6 6 10
Items that will not subsequently be reclassified to the income statement -15 -36
Items that are or may subsequently be reclassified to the income
statement:
Value adjustments of hedging instruments -119 270
Value adjustment transferred to operating costs -110 9
Value adjustment transferred to financial costs 20 5
Value adjustment transferred to non-current tangible assets 0 7
Tax on items that are or may be reclassified to the income statement 2.6 0 -41
Foreign exchange adjustments, subsidiaries 63 -177
Items that are or may subsequently be reclassified to the income statement -146 72
Total other comprehensive income after tax -161 36
Total comprehensive income 1,343 2,055
Total comprehensive income for the year is attributable to:
Equity holders of DFDS A/S 1,341 2,045
Non-controlling interests 2 10
Total comprehensive income 1,343 2,055
1 The Board of Directors pro-
poses to the 2024 Annual
General Meeting that a divi-
dend of DKK 3.00 per share
is paid in 2024. In addition
DKK 431m will be distributed
through a share buyback
under the Safe Harbour
rules starting on 12 February
2024 and expiring on 31
December 2024.
DFDS Annual Report 2023 Consolidated Financial Statements 88 / 179
Balance sheet 31 December Assets
DKK million Note 2023 2022
Goodwill 4,952 4,407
Port concession rights 990 1,026
Other non-current intangible assets 831 676
Software 346 324
Development projects in progress 17 12
Non-current intangible assets 3.1.1 7,136 6,444
Land and buildings 3.1.2 759 559
Terminals 3.1.2 823 836
Ferries and other ships 3.1.2 11,782 13,186
Equipment, etc. 3.1.2 1,939 1,600
Assets under construction and prepayments 3.1.2 415 369
Right-of-use assets 3.1.3 5,826 4,648
Non-current tangible assets 21,543 21,197
Investments in associates, joint ventures and securities 2 13
Receivables 3.2.1 1 16
Prepaid costs 1 124
Deferred tax 2.6 79 49
Derivative financial instruments 4.2 155 299
Other non-current assets 238 500
Total non-current assets 28,918 28,141
Inventories 3.2.2 339 324
Receivables 3.2.1 4,459 4,015
Prepaid costs 400 368
Derivative financial instruments 4.2 20 48
Cash 737 1,189
Current assets 5,955 5,943
Assets 34,873 34,084
Balance sheet 31 December Equity and Liabilities
DKK million Note 2023 2022
Share capital 1,173 1,173
Reserves -451 -284
Retained earnings 13,105 12,133
Equity attributable to equity holders of DFDS A/S 13,827 13,022
Non-controlling interests 91 114
Equity 4.6 13,918 13,135
Interest-bearing liabilities 4.5 13,134 12,397
Deferred tax 2.6 467 359
Pension and jubilee liabilities 3.2.4 90 88
Other provisions 3.2.5 22 44
Derivative financial instruments 4.2 43 8
Non-current liabilities 13,756 12,896
Interest-bearing liabilities 4.5 2,336 3,137
Trade payables 3,461 3,661
Other provisions 3.2.5 113 52
Corporation tax 83 170
Other payables 3.2.3 904 768
Derivative financial instruments 4.2 52 40
Prepayments from customers 251 223
Current liabilities 7,199 8,053
Liabilities 20,955 20,949
Equity and liabilities 34,873 34,084
DFDS Annual Report 2023 Consolidated Financial Statements 89 / 179
Statement of change in equity 1 January – 31 December 2023
DKK million Share capital
Translation
reserve
Hedging
reserve
Treasury
shares
Retained
earnings
Equity attributable
to equity holders
of DFDS A/S
Non-
controlling
interests Total
Equity at 1 January 2023 1,173 -543 286 -28 12,133 13,022 114 13,135
Comprehensive income for the year
Profit for the year 1,501 1,501 3 1,505
Other comprehensive income after tax 62 -208 -14 -160 -1 -161
Total comprehensive income 62 -208 1,487 1,341 2 1,343
Transactions with owners
Acquisition, non-controlling interests 17 17 -25 -8
Dividends paid -293 -293 -293
Dividends on treasury shares 12 12 12
Share-based payments 29 29 29
Share buyback -21 -279 -300 -300
Cash from sale of treasury shares related to exercise of share options 1 -1 0 0
Total transactions with owners 0 0 0 -21 -515 -536 -25 -560
Equity at 31 December 2023 1,173 -480 78 -48 13,105 13,827 91 13,918
The Parent Company’s share capital is divided into 58,631,578 shares of DKK 20 each. All shares have equal
rights. There are no restrictions on voting rights. The shares are fully paid up. The Board of Directors proposes to
the 2024 Annual General Meeting that a dividend of DKK 3.00 per share is paid in 2024. In addition, DKK 431m
will be distributed through a share buyback under the Safe Harbour rules starting on 12 February 2024 and
expiring on 31 December 2024 .
DFDS Annual Report 2023 Consolidated Financial Statements 90 / 179
Statement of change in equity 1 January – 31 December 2022
DKK million Share capital
Translation
reserve
Hedging
reserve
Treasury
shares
Retained
earnings
Equity attributable
to equity holders
of DFDS A/S
Non-
controlling
interests Total
Equity at 1 January 2022 1,173 -366 -5 -25 10,669 11,446 108 11,554
Comprehensive income for the year
Profit for the year 2,010 2,010 10 2,019
Other comprehensive income after tax -177 291 0 -78 36 36
Total comprehensive income 0 -177 291 0 1,931 2,045 10 2,055
Transactions with owners
Acquisition, non-controlling interests 1 1 -1 0
Dividends paid -235 -235 -235
Dividends paid, non-controlling interests 0 -3 -3
Dividends on treasury shares 5 5 5
Extraordinary dividends paid -235 -235 -235
Extraordinary dividends on treasury shares 5 5 5
Share-based payments 20 20 20
Purchase of treasury shares -2 -30 -32 -32
Total transactions with owners 0 0 0 -2 -468 -470 -4 -474
Equity at 31 December 2022 1,173 -543 286 -28 12,133 13,022 114 13,135
DFDS Annual Report 2023 Consolidated Financial Statements 91 / 179
Statement of cash flows 1 January – 31 December
DKK million Note 2023 2022
Operating profit before depreciation and amortisation (EBITDA) 5,034 4,974
Adjustments for non-cash operating items, etc. 5.4 53 45
Change in working capital. 5.4 -338 6
Payment of pension liabilities and other provisions -44 -97
Interest etc., received 79 50
Interest etc., paid -734 -388
Taxes paid -240 -109
Cash flows from operating activities 3,811 4,480
Investments in ferries including dockings, etc. -998 -1,747
Sale of ferries 1,466 21
Investments in other non-current tangible assets -578 -1,026
Sale of other non-current tangible assets 92 113
Investments in non-current intangible assets -83 -70
Acquisition of enterprises, associates, joint ventures and activities,
net of cash acquired 5.5 -1,033 -280
Divestment of enterprises and associates 0 -2
Other investing cash flows -14 3
Cash flows from investing activities -1,149 -2,989
1 At 31 December 2023
DKK 14 m (2022: DKK 175 m)
of the cash was deposited
on restricted bank ac-
counts.
DKK million Note 2023 2022
Free cash flows 2,662 1,491
Proceeds from bank loans and loans secured by mortgage in ferries 4.3 1,556 3,903
Repayment and instalments of bank loans and loans secured by
mortgage in ferries 4.3 -4,141 -2,632
Proceeds from issuance of corporate bonds 4.3 981 0
Repayment of corporate bonds incl. settlement of cross currency swap 4.3 0 -1,000
Payment of lease liabilities 4.3 -935 -963
Settlement of forward exchange contracts related to leases 12 15
Acquisition of treasury shares and share buyback 4.7 -300 -32
Other financing cash flows -8 -33
Dividends paid to non-controlling interests 0 -3
Dividends paid to equity holders of DFDS A/S -281 -459
Cash flows from financing activities -3,115 -1,203
Net cash flows -454 288
Cash and cash equivalents at 1 January 1,189 902
Foreign exchange adjustments of cash and cash equivalents 2 -2
Cash and cash equivalents at 31 December
1
DFDS Annual Report 2023 Consolidated Financial Statements 92 / 179
Notes
1. Basis of preparation of the Consolidated Financial Statements
1.1 Principal accounting policies .......................................................................................95
1.2 New accounting policies and disclosures .................................................................... 97
1.3 Significant accounting estimates and judgements ..................................................... 97
2. Net Operating Profit After Tax (NOPAT) ..............................................................................98
2.1 Segment information .................................................................................................... 99
2.2 Revenue ..................................................................................................................... 101
2.3 Costs .......................................................................................................................... 102
2.4 Employee costs .......................................................................................................... 102
2.5 Amortisation, depreciation and impairment losses for the year ................................ 103
2.6 Tax .............................................................................................................................. 103
3. Invested capital ................................................................................................................106
3.1 Invested capital excluding net working capital .......................................................... 107
3.1.1 Non-current intangible assets .................................................................................... 107
3.1.2 Non-current tangible assets .......................................................................................109
3.1.3 Right-of-use assets and lease liabilities ...................................................................... 111
3.1.4 Impairment testing ..................................................................................................... 114
3.2 Net working capital .................................................................................................... 116
3.2.1 Receivables ................................................................................................................ 116
3.2.2 Inventories ...................................................................................................................117
3.2.3 Other payables ............................................................................................................117
3.2.4 Pension and jubilee liabilities ..................................................................................... 118
3.2.5 Other provisions .......................................................................................................... 120
4. Capital structure and finances .......................................................................................... 121
4.1 Financial and operational risks .................................................................................. 122
4.2 Information on financial instruments .......................................................................... 127
4.3 Changes in liabilities arising from financing activities ............................................... 128
4.4 Financial income and costs ........................................................................................ 129
4.5 Interest-bearing liabilities ........................................................................................... 130
4.6 Equity .......................................................................................................................... 131
4.7 Treasury shares .......................................................................................................... 131
4.8 Earnings per share ...................................................................................................... 131
5. Other notes ........................................................................................................................132
5.1 Remuneration to the Executive Board and Board of Directors ................................... 133
5.2 Fee to auditors appointed at the Annual General Meeting ......................................... 134
5.3 Share based payment ................................................................................................ 134
5.4 Cash flow .................................................................................................................... 137
5.5 Acquisitions and non-controlling interests ................................................................. 138
5.6 Guarantees, collateral and contingent liabilities .......................................................140
5.7 Contractual commitments ......................................................................................... 140
5.8 Related party transactions......................................................................................... 140
5.9 Events after the balance sheet date .......................................................................... 140
5.10 Company overview ..................................................................................................... 141
ROIC
Invested capital
(Section 3)
NOPAT
(Section 2)
Corporate income
tax on EBIT
EBIT
Invested capital excl.
net working capital
(Section 3.1)
Net working capital
(Section 3.2)
DFDS Annual Report 2023 Consolidated Financial Statements 93 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 95 / 179
1.1 Principal accounting policies (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 96 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 97 / 179
ROIC
Invested capital
(Section 3)
NOPAT
(Section 2)
Corporate income
tax on EBIT
EBIT
Invested capital excl.
net working capital
(Section 3.1)
Net working capital
(Section 3.2)
2. Net Operating Profit After Tax (NOPAT)
Return on invested capital (ROIC) is a strategic key ratio to DFDS when measuring the financial performance
of our business. DFDS' return target goal is a ROIC of around 10% by the end of 2026.
This section provides the notes of the main components that forms the basis of Net operating profit after tax
(NOPAT) which is a measure of profit that excludes the costs and tax benefit of debt financing by measuring the
earnings before interest and taxes (EBIT) adjusted for corporate income tax on EBIT.
Together with invested capital, NOPAT forms the basis of the ROIC calculation. Reference is made to section 3.
DKK million Note 2023 2022
Revenue 2.1, 2.2 27,304 26,873
Costs:
Ferry and other ship operation and maintenance 2.3 -5,485 -6,426
Port terminal operations -3,264 -3,090
Transport and warehouse solutions -6,743 -6,657
Employee costs 2.4 -5,572 -4,726
Cost of sales, general and administration -1,206 -1,000
Operating profit before depreciation (EBITDA) 5,034 4,974
Share of profit/loss of associates and joint ventures -26 -14
Profit on disposal of non-current assets, net 111 14
Depreciation and impairment on tangibles and right-of-use assets -2,615 -2,371
Operating profit before amortisation (EBITA) 2,504 2,603
Amortisation and impairment losses, intangibles 2.5 -178 -135
Operating profit (EBIT) 2,326 2,468
Corporate income tax on EBIT
1
-148 -162
Net Operating Profit After Tax (NOPAT) 2,178 2,306
Net Operating Profit After Tax (NOPAT) before acquisition intangibles 2,356 2,393
Return on invested capital (ROIC) 7.6% 8.7%
Return on invested capital (ROIC) before acquisition intangibles 10.4% 11.7%
1 Corporate income tax is cal-
culated for each entity with-
in the Group following the
tax legislation and current
tax rate in each tax jurisdic-
tion adjusted by the tax ef-
fect from financial items.
The amounts per entity are
then consolidated.
DFDS Annual Report 2023 Consolidated Financial Statements 98 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 99 / 179
2.1 Segment information (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 100 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 101 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 102 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 103 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 104 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 105 / 179
ROIC
Invested capital
(Section 3)
NOPAT
(Section 2)
Corporate income
tax on EBIT
EBIT
Invested capital excl.
net working capital
(Section 3.1)
Net working capital
(Section 3.2)
3. Invested capital
Invested capital is a key component when calculating ROIC. Reference is made to section 2 for more details about
NOPAT. The following section provides the notes of the main components that forms basis of the Invested capital
being Net working capital (non-interest-bearing current assets minus non-interest bearing current liabilities plus
non-current prepaid costs minus pension and jubilee liabilities and other provisions) plus non-current intangible and
tangible assets. Furthermore, notes that are closely related to the Non-current intangible, tangible assets, and
right-of use assets such as Impairment testing is also included in this section
DKK million Note 2023 2022
Invested capital excluding net working capital:
Non-current intangible assets 3.1.1 7,136 6,444
Non-current tangible assets 3.1.2 15,717 16,549
Right-of-use assets 3.1.3 5,826 4,648
Investments in associates and joint ventures 0 11
Invested capital excluding net working capital 28,680 27,651
Net working capital:
Receivables (excluding interest-bearing receivables) 3.2.1 4,460 4,031
Inventories 3.2.2 339 324
Prepaid costs 402 492
Derivatives related to operating activities, financial assets
measured at fair value 4.2 56 102
Derivatives related to operating activities, financial liabilities
measured at fair value 4.2 -18 -40
Pension assets 3.2.4 0 0
Pension and jubilee liabilities 3.2.4 -90 -88
Other provisions 3.2.5 -134 -96
Trade payables -3,461 -3,661
Corporation tax -83 -170
Other payables 3.2.3 -904 -768
Prepayments from customers -251 -223
Net working capital 316 -98
Invested capital 28,996 27,554
Average invested capital 28,275 26,523
DFDS Annual Report 2023 Consolidated Financial Statements 106 / 179
3.1 Invested capital excluding net working capital
4
DFDS Annual Report 2023 Consolidated Financial Statements 107 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 108 / 179
2
DFDS Annual Report 2023 Consolidated Financial Statements 109 / 179
3.1.2 Non-current tangible assets (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 110 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 111 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 112 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 113 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 114 / 179
3.1.4 Impairment testing (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 115 / 179
3.2 Net working capital
DFDS Annual Report 2023 Consolidated Financial Statements 116 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 117 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 118 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 119 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 120 / 179
4. Capital structure and finances
This section shows how the activities of DFDS are financed. DFDS targets a financial leverage ratio between 2.0
and 3.0, where the ratio is measured as net interest-bearing debt to operating profit before depreciation and
amortisation (EBITDA) .
The following section provides the notes of the main components that form basis of the net interest-bearing debt.
Furthermore, the section includes information on financial and operational risks, financial instruments, treasury
shares, and earnings per share.
DKK million Note 2023 2022
Interest-bearing liabilities
1
4.5 15,470 15,535
Derivative financial instruments, related to interest-bearing activities,
net 4.2 -42 -236
Receivables, interest-bearing 3.2.1 0 0
Securities 4.2 -2 -2
Cash -73 7 -1,189
Net interest-bearing debt (NIBD) 14,689 14,109
Operating profit before depreciation and amortisation (EBITDA) 5,034 4,955
Financial leverage ratio (NIBD/EBITDA, times)
2
2.9 2.8
1 Hereof DKK 6,072m (2022:
DKK 4,705m) relating to
lease liabilities that have
different characteristics
than other liabilities
in cluded in interest- bearing
liabilities.
2 The ratio includes pro
forma EBITDA for the last
twelve months for acquired
companies.
DFDS Annual Report 2023 Consolidated Financial Statements 121 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 122 / 179
4.1 Financial and operational risks (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 123 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 124 / 179
4.1 Financial and operational risks (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 125 / 179
4.1 Financial and operational risks (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 126 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 127 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 128 / 179
4.3 Changes in liabilities arising from financing activities (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 129 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 130 / 179
4.6 Equity
4.7 Treasury shares (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 131 / 179
5. Other notes
5.1 Remuneration to the Executive Board and Board of Directors 133
5.2 Fee to auditors appointed at the Annual General Meeting 134
5.3 Share based payments 134
5.4 Cash flow 137
5.5 Acquisitions and non-controlling interests 138
5.6 Guarantees, collateral and contingent liabilities 140
5.7 Contractual commitments 140
5.8 Related party transactions 140
5.9 Events after the balance sheet date 140
5.10 Company overview 141
DFDS Annual Report 2023 Consolidated Financial Statements 132 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 133 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 134 / 179
5.3 Share based payment (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 135 / 179
5.3 Share based payment (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 136 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 137 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 138 / 179
5.5 Acquisitions and non-controlling interests (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 139 / 179
DFDS Annual Report 2023 Consolidated Financial Statements 140 / 179
2
2
DFDS Annual Report 2023 Consolidated Financial Statements 141 / 179
I
5.10 Company overview (continued)
DFDS Annual Report 2023 Consolidated Financial Statements 142 / 179
Income statement 1 January – 31 December
DKK million Note 2023 2022
Revenue 1 11,292 11,621
Costs:
Ferry and other ship operation and maintenance 2 -3,239 -3,591
Port terminal operations -2,424 -2,452
Transport solutions and warehouse solutions -428 -472
Employee costs 3 -1,656 -1,485
Cost of sales and administration 4 -1,122 -963
Operating profit before depreciation and amortisation (EBITDA) 2,422 2,658
Profit on disposal of non-current assets, net 102 32
Depreciation on tangibles and right-of-use assets 5 -1,505 -1,489
Operating profit before amortisation (EBITA) 1,019 1,200
Amortisation on intangibles 5 -55 -44
Operating profit (EBIT) 964 1,157
Financial income 6 1,331 644
Financial costs 6 -79 5 -192
Profit before tax 1,500 1,608
Tax on profit 7 0 0
Profit for the year 1,500 1,608
Statement of comprehensive income 1 January – 31 December
DKK million Note 2023 2022
Profit for the year 1,500 1,608
Other comprehensive income
Items that are or may subsequently be reclassified to the Income
statement:
Value adjustment of hedging instruments for the year -75 210
Value adjustment transferred to operating costs -110 9
Value adjustment transferred to financial costs 43 11
Value adjustment transferred to non-current tangible assets 0 7
Foreign exchange adjustments, foreign branches 4 -33
Tax on items that are or may be reclassified to the Income statement 7 0 -42
Items that are or may subsequently be reclassified to the Income statement -138 162
Total other comprehensive income after tax -138 162
Total comprehensive income 1,362 1,770
DFDS Annual Report 2023 Parent Financial Statements 144 / 179
Balance sheet 31 December Assets
DKK million Note 2023 2022
Goodwill 116 116
Software 342 320
Development projects in progress 17 12
Non-current intangible assets 8 476 448
Land and buildings 9 20 22
Terminals 9 29 27
Ferries and other ships 9 5,036 6,397
Equipment, etc. 9 189 199
Assets under construction and prepayments 9 218 172
Right-of-use assets 10 2,338 1,818
Non-current tangible assets 7,831 8,635
Investments in subsidiaries 11 11,465 9,289
Investments in associates, joint ventures and securities 2 2
Receivables 12 28 75
Prepaid costs 0 3
Derivative financial instruments 22,23 132 263
Deferred tax assets 15 0 0
Other non-current assets 11,627 9,631
Non-current assets 19,933 18,714
Inventories 13 198 183
Receivables 12 2,185 2,210
Prepaid costs 89 77
Derivative financial instruments 22,23 20 29
Cash 381 489
Current assets 2,872 2,988
Assets 22,806 21,702
Balance sheet 31 December Equity and Liabilities
DKK million Note 2023 2022
Share capital 1,173 1,173
Reserves 371 501
Retained earnings 9,910 8,975
Equity 11,453 10,649
Interest-bearing liabilities 19 4,811 3,955
Deferred tax 15 6 6
Pension and jubilee liabilities 17 9 9
Other provisions 18 7 31
Derivative financial instruments 22,23 59 71
Non-current liabilities 4,893 4,071
Interest-bearing liabilities 19 3,778 4,622
Trade payables 1,398 1,650
Other provisions 18 49 16
Corporation tax 4 36
Other payables 21 977 428
Derivative financial instruments 22,23 52 49
Prepayments from customers 202 182
Current liabilities 6,460 6,982
Liabilities 11,353 11,053
Equity and liabilities 22,806 21,702
DFDS Annual Report 2023 Parent Financial Statements 145 / 179
DKK million Share capital
Translation
reserve
Hedging
reserve
Reserve for
development
costs
Treasury
shares
Retained
earnings Total
Equity at 1 January 2023 1,173 -36 232 333 -28 8,975 10,649
Comprehensive income for the year
Profit for the year 1,500 1,500
Other comprehensive income after tax 0 5 -142 0 0 0 -138
Total comprehensive income 0 5 -142 0 0 1,500 1,362
Transactions with owners
Dividends paid -293 -293
Dividends on treasury shares 12 12
Share-based payments 23 23
Share buyback -21 -279 -300
Cash from sale of treasury shares related to exercise of share options 1 -1 0
Capitalised development costs, additions 27 -27 0
Total transactions with owners 2023 0 0 0 27 -21 -565 -559
Equity at 31 December 2023 1,173 -31 90 360 -48 9,910 11,453
The Parent Company’s share capital is divided into 58,631,578 shares of DKK 20 each. All shares have equal
rights. There are no restrictions on voting rights. The shares are fully paid up. The Board of Directors proposes to
the 2024 Annual General Meeting that a dividend of DKK 3.00 per share is paid in 2024. In addition, DKK 431m
will be distributed through a share buyback under the Safe Harbour rules starting on 12 February 2024 and
expiring on 31 December 2024 .
Statement of change in equity 1 January – 31 December 2023
DFDS Annual Report 2023 Parent Financial Statements 146 / 179
DKK million Share capital
Translation
reserve
Hedging
reserve
Reserve for
development
costs
Treasury
shares
Retained
earnings Total
Equity at 1 January 2022 1,173 -3 -4 307 -25 7,908 9,355
Comprehensive income for the year
Profit for the year 1,608 1,608
Other comprehensive income after tax 0 -33 236 0 0 -42 162
Total comprehensive income 0 -33 236 0 0 1,566 1,770
Transactions with owners
Dividends paid -235 -235
Dividends on treasury shares 5 5
Extraordinary dividends paid -235 -235
Extraordinary dividends on treasury shares 5 5
Share-based payments 15 15
Purchase of treasury shares -2 -30 -32
Capitalised development costs, additions 26 -26 0
Total transactions with owners 2022 0 0 0 26 -2 -499 -475
Equity at 31 December 2022 1,173 -36 232 333 -28 8,975 10,649
The Parent company’s share capital is divided into 58,631,578 shares of DKK 20 each. All shares have equal
rights. There are no restrictions on voting rights. The shares are fully paid up.
Statement of change in equity 1 January – 31 December 2022
DFDS Annual Report 2023 Parent Financial Statements 147 / 179
Statement of cash flows 1 January – 31 December
DKK million Note 2023 2022
Operating profit before depreciation and amortisation (EBITDA) 2,422 2,658
Adjustments for non-cash operating items, etc. 24 12 9
Change in working capital 25 -114 280
Payment of pension liabilities and other provisions -1 -55
Interest etc., received 109 65
Interest etc., paid -414 -193
Taxes paid -32 -1
Cash flows from operating activities 1,982 2,764
Investments in ferries including dockings, etc. -494 -1,121
Sale of ferries 1,466 0
Investments in other non-current tangible assets -51 -115
Sale of other non-current tangible assets 0 4
Investments in non-current intangible assets -82 -70
Acquisition of enterprises, associates, joint ventures, and activities 11 -1,185 -406
Group internal acquisition of enterprises 11 -1 0
Group internal divestment of enterprises 38 28
Capital contributions to subsidiaries, purchase of minority shares, etc. 11 -139 -108
Dividends received from subsidiaries 3 166
Other investing cash flows -3 1
Cash flows from investing activities -447 -1,622
Free cash flows 1,535 1,142
DKK million Note 2023 2022
Proceed from bank loans and loans secured by mortgage in ferries 20 1,500 3,894
Repayment and instalments of bank loans and loans secured by
mortgage in ferries 20 -3,233 -1,980
Proceed from issuance of corporate bonds 20 981 0
Repayment of corporate bonds incl. settlement of cross currency swap 20 0 -1,000
Payment of lease liabilities 20 -875 -940
Change in Group internal financing, net 20 564 -579
Acquisition of treasury shares and share buyback -300 -32
Other financing cash flows 0 -33
Dividends paid -281 -459
Cash flows from financing activities -1,644 -1,128
Net cash flows -109 14
Cash and cash equivalents at 1 January 489 475
Cash and cash equivalents at 31 December 381 489
DFDS Annual Report 2023 Parent Financial Statements 148 / 179
Notes
Note 1. Revenue ....................................................................................................................... 150
Note 2. Costs ............................................................................................................................ 150
Note 3. Employee costs ............................................................................................................ 151
Note 4. Fees to auditors appointed at the Annual General Meeting ........................................ 151
Note 5. Amortisation and depreciation for the year ................................................................. 151
Note 6. Financial income and costs ......................................................................................... 152
Note 7. Tax ............................................................................................................................... 152
Note 8. Non-current intangible asset ....................................................................................... 153
Note 9. Non-current tangible assets ........................................................................................ 154
Note 10. Right-of-use assets and lease liabilities ...................................................................... 155
Note 11. Investments in subsidiaries .......................................................................................... 156
Note 12. Receivables ................................................................................................................. 157
Note 13. Inventories ................................................................................................................... 157
Note 14. Distribution to shareholders and treasury shares ........................................................ 157
Note 15. Deferred tax ................................................................................................................. 158
Note 16. Share based payment ................................................................................................. 158
Note 17. Pension and jubilee liabilities ....................................................................................... 159
Note 18. Other provisions ........................................................................................................... 159
Note 19. Interest-bearing liabilities ............................................................................................ 160
Note 20. Changes in liabilities arising from financing activities ................................................. 160
Note 21. Other payables ............................................................................................................ 161
Note 22. Information on financial instruments ........................................................................... 161
Note 23. Financial and operational risks .................................................................................... 162
Note 24. Non-cash operating items ...........................................................................................164
Note 25. Change in working capital ........................................................................................... 164
Note 26. Acquisition and divestments of enterprises, activities and non-controlling interests . 164
Note 27. Guarantees, collateral and contingent liabilities ........................................................ 164
Note 28. Contractual commitments .......................................................................................... 164
Note 29. Related party transactions .......................................................................................... 165
Note 30. Impairment testing ...................................................................................................... 165
Note 31. Events after the balance sheet date............................................................................ 165
Note 32. Accounting policies .....................................................................................................166
DFDS Annual Report 2023 Parent Financial Statements 149 / 179
Note 1 Revenue
2023
DKK million
Ferry
Division
Logistics
Division
Non-
allocated Total
Geographical markets
North Sea 6,114 - 0 6,114
Baltic Sea 1,299 - 0 1,299
Continent - 374 0 374
Nordic - 422 0 422
UK/Ireland 3,036 18 0 3,053
Other 0 0 31 31
Total 10,448 813 31 11,292
Product and services
Seafreight and shipping logistics solutions 6,395 0 0 6,395
Transport solutions 23 544 0 567
Passenger seafare and onboard sales 3,352 0 0 3,352
Terminal services 93 0 0 93
Charters including related income 388 0 0 388
Agency and other revenue 197 269 31 497
Total 10,448 813 31 11,292
Revenue includes revenue recognised from contracts with customers in accordance with IFRS 15 and other revenue
(leasing activities). Revenue from leasing activities amounts to DKK 388m (2022: DKK 415m). Onboard sales
amounts to DKK 1,607m (2022: DKK 1,286m).
Note 1 Revenue (continued)
2022
DKK million
Ferry
Division
Logistics
Division
Non-
allocated Total
Geographical markets
North Sea 6,146 - 0 6,146
Baltic Sea 1,564 - 0 1,564
Continent - 409 0 409
Nordic - 370 0 370
UK/Ireland 3,088 15 0 3,015
Other 0 0 28 28
Total 10,798 795 28 11,621
Product and services
Seafreight and shipping logistics solutions 7,153 0 0 7,153
Transport solutions 24 585 0 610
Passenger seafare and onboard sales 2,799 0 0 2,799
Terminal services 159 0 0 158
Charters including related income 415 0 0 415
Agency and other revenue 247 210 28 485
Total 10,798 795 28 11,621
Note 2 Costs
DKK million 2023 2022
Ferry and other ship cost including charter related cost -1,362 -1,240
Bunker -1,878 -2,351
Total ferry and other ship operation and maintenance -3,239 -3,591
DFDS Annual Report 2023 Parent Financial Statements 150 / 179
Note 3 Employee costs
DKK million 2023 2022
Wages, salaries and remuneration -1,388 -1,255
Hereof capitalised employee costs 44 47
Defined contribution pension plans -94 -81
Other social security costs -70 -67
Share based payment, reference is made to note 16 -17 -12
Employee shares -5 -4
Other employee costs -127 -115
Government grants (Covid-19) 2 3
Total employee costs -1,656 -1,485
Full time equivalents (FTE) 3,116 2,820
Reference is made to note 5.1 of the consolidated financial statements for a description of the Parent company’s
remuneration to the Executive Board and remuneration to the Board of Directors as these are the same for the
Parent company and the Group.
Note 5 Amortisation and depreciation for the year
DKK million 2023 2022
Amortisation and depreciation for the year:
Software -55 -44
Total amortisation for the year -55 -44
Land & Buildings -2 -2
Terminals -7 -5
Ferries and other ships -537 -463
Equipment etc. -48 -38
Right-of-use assets -911 -981
Total depreciation for the year -1,505 -1,489
Total amortisation and depreciation for the year -1,560 -1,534
Note 4 Fees to auditors appointed at the Annual General Meeting
DKK million 2023 2022
Audit fees -3 -3
Other assurance engagements 0 0
Tax and VAT advice -3 -1
Non-audit services -5 0
Total fees -11 -4
In relation to fees for services other than the statutory audit of the financial statements provided by
PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab, Denmark reference is made to the
consolidated financial statements note 5.2
DFDS Annual Report 2023 Parent Financial Statements 151 / 179
Note 6 Financial income and costs
DKK million 2023 2022
Financial income
Interest income from banks, etc. 27 3
Interest income from subsidiaries 47 16
Foreign exchange gains, net
1
0 35
Reversal of impairment of investments in subsidiaries
2
1 364
Dividends received from subsidiaries 1,224 166
Other financial income 33 60
Total financial income 1,331 644
Financial costs
Interest expense to banks, credit institutions, corporate bonds, etc. -229 -84
Interest expense on lease liabilities
3
-89 -86
Interest expense to subsidiaries -76 -9
Foreign exchange losses, net
1
-29 0
Impairment of investments in subsidiaries
3
-358 0
Other financial costs -14 -15
Transfer to assets under construction 0 1
Total financial costs -79 5 -192
Financial income and costs, net 536 451
DFDS A/S makes forward exchange transactions, etc., on behalf of all subsidiaries, and therefore foreign exchange
gains and losses in DFDS A/S also consist of the Group’s gross transactions. Transactions entered into
on behalf of subsidiaries are transferred to the subsidiaries on back-to-back terms.
Except for interest income (net) relating to interest swap agreements of DKK 0m (2022: DKK -1m) interest income
and interest expenses relate to financial instruments measured at amortised cost.
1 Foreign exchange gains in
2023 amounts to DKK 303m
(2022: DKK 509m) and
foreign exchange losses
amounts to DKK 333m
(2022: DKK 474m).
2 Reference is made to
note 30.
3 Reference is made to
note 10.
4 Primarily relates to tax
exempt dividends from
subsidiaries, write down of
investment in subsidiaries
and interest restriction.
Note 7 Tax
DKK million 2023 2022
Current joint tax contributions 0 -33
Movement in deferred tax for the year 0 -11
Adjustment to deferred tax in respect of prior years 0 2
Tax for the year 0 -42
Tax for the year is recognised as follows:
Tax in the income statement 0 0
Tax in other comprehensive income 0 -42
Tax for the year 0 -42
Tax in the income statement can be specified as follows:
Profit before tax 1,500 1,608
Income subject to tonnage tax -855 -1,069
Profit before tax subject to corporate income tax 645 539
22% tax of profit before tax -142 -118
Tax effect of:
Non-taxable/non-deductible items
4
145 119
Adjustments of tax in respect of prior years 0 2
Corporate income tax 3 3
Tonnage tax -3 -3
Tax in the income statement 0 0
Effective tax rate (%) 0.9 2.5
Effective tax rate before adjustment of prior years’ tax (%) 3.0 15.2
The ferry activities are included in the Danish tonnage tax scheme where the taxable income related to
transportation of passengers and freight is calculated based on the tonnage deployed during the year. Taxable
income related to other activities is taxed according to the normal corporate income tax rules at the standard
corporate tax rate of 22%.
DFDS A/S and its Danish subsidiaries are subject to compulsory joint taxation with Lauritzen Fonden Holding ApS
and its Danish controlled enterprises. Lauritzen Fonden Holding ApS is the administration company in the joint
taxation and settles all payments of corporation tax due by the joint taxed enterprises with the tax authorities. In
accordance with the Danish rules on joint taxation, DFDS A/S and its Danish subsidiaries are liable for their own
corporate tax due and are only subsidiary and pro rata liable for the corporation tax liabilities towards the Danish
tax authorities for all other enterprises that are part of the Danish joint taxation.
DFDS Annual Report 2023 Parent Financial Statements 152 / 179
Note 8 Non-current intangible asset
DKK million Goodwill Software
Development
projects in
progress Total
Cost at 1 January 2023 116 698 12 826
Additions 0 0 82 82
Disposals 0 -51 0 -51
Transfers 0 77 -7 7 0
Cost at 31 December 2023 116 724 17 857
Amortisation and impairment losses at 1 January 2023 0 377 0 377
Amortisation charge 0 55 0 55
Disposals 0 -50 0 -50
Amortisation and impairment losses at
31 December 2023 0 381 0 381
Carrying amount at 31 December 2023 116 342 17 476
DKK million Goodwill Software
Development
projects in
progress Total
Cost at 1 January 2022 116 640 14 771
Additions 0 0 70 70
Disposals 0 -15 0 -15
Transfers 0 72 -72 0
Cost at 31 December 2022 116 698 12 826
Amortisation and impairment losses at 1 January 2022 0 348 0 348
Amortisation charge 0 44 0 44
Disposals 0 -15 0 -15
Amortisation and impairment losses at
31 December 2022 0 377 0 377
Carrying amount at 31 December 2022 116 320 12 448
The Parent company’s carrying amount of goodwill DKK 116m (2022: DKK 116m) relates to the acquisition of two
freight- and passenger routes in 2016 and 2011, respectively, and one freight route in 2005.
The carrying amount of software and development projects in progress primarily relates to a passenger booking
system, a transport management system to the Logistics Division, an onboard sales system, an ERP system, and
digital initiatives in general.
For information regarding impairment tests reference is made to note 3.1.4 in the consolidated financial
statements.
DFDS Annual Report 2023 Parent Financial Statements 153 / 179
1 Primarily relates to sale and
leaseback of three vessels
during 2023.
2 Primarily relates to two new
vessels delivered in 2022.
Note 9 Non-current tangible assets
DKK million
Land and
buildings Terminals
Ferries and
other ships
Equip ment
etc.
Assets under
construction
and pre-
payments Total
Cost at 1 January 2023 25 81 11,681 524 172 12,483
Foreign exchange
adjustments 0 0 4 0 0 4
Additions 0 1 11 0 530 543
Disposals 0 0 -1,481
1
-43 0 -1,524
Transfers 0 8 431 45 -484 0
Cost at
31 December 2023 25 90 10,646 526 218 11,506
Depreciation and
impairment losses at
1 January 2023 3 54 5,284 325 0 5,666
Foreign exchange
adjustments 0 0 2 0 0 2
Depreciation charge 2 7 537 48 0 594
Disposals 0 0 -212 -38 0 -250
Transfers 0 0 0 2 0 1
Depreciation and
impairment losses at
31 December 2023 5 61 5,611 337 0 6,014
Carrying amount at
31 December 2023 20 29 5,036 189 218 5,492
DKK million
Land and
buildings Terminals
Ferries and
other ships
Equip ment
etc.
Assets under
construction
and pre-
payments Total
Cost at 1 January 2022 11 72 9,720 440 1,192 11,435
Additions 0 0 0 0 1,238 1,238
Disposals -9 0 -166 -16 0 -190
Transfers 23 10 2,126
2
99 -2,257 0
Cost at
31 December 2022 25 81 11,681 524 172 12,483
Depreciation and
impairment losses at
1 January 2022 10 49 4,986 302 0 5,347
Depreciation charge 2 5 463 38 0 508
Disposals -9 0 -166 -15 0 -189
Depreciation and
impairment losses at
31 December 2022 3 54 5,284 325 0 5,666
Carrying amount at
31 December 2022 22 27 6,397 199 172 6,817
DFDS Annual Report 2023 Parent Financial Statements 154 / 179
Note 10 Right-of-use assets and lease liabilities
The Parent company has lease contracts for various items of land & buildings, terminals, ferries, equipment etc. in
its operations. The Parent company's obligations under the leases are secured by the lessors' title to the leased
assets. There are several lease contracts that include extension and termination options, these options are
negotiated by management to provide flexibility in managing the asset portfolio. Set out below are the carrying
amounts of right-of-use assets recognised and the movements during the period.
DKK million
Land and
buildings Terminals
Ferries and
other ships
Equipment
etc. Total
Cost at 1 January 2023 157 128 4,328 37 4,650
Foreign exchange adjustments 0 0 4 0 4
Additions/Remeasurement 22 93 1,359
1
0 1,474
Disposals 0 0 -680 -37 -717
Cost at 31 December 2023 181 220 5,011 0 5,412
Depreciation and impairment
losses at 1 January 2023 16 59 2,728 29 2,832
Foreign exchange adjustments
Depreciation charge 18 11 877 6 911
Disposals 0 0 -638 -35 -673
Depreciation and impairment
losses 31 December 2023 34 70 2,968 0 3,073
Carrying amount at 31 December 2023 146 150 2,042 0 2,338
DKK million
Land and
buildings Terminals
Ferries and
other ships
Equipment
etc. Total
Cost at 1 January 2022 62 57 3,585 49 3,752
Additions/Remeasurement 155 71 1,443
2
6 1,676
Disposals -60 0 -700 -18 -7 7 8
Cost at 31 December 2022 157 128 4,328 37 4,650
Depreciation and impairment
losses at 1 January 2022 60 50 2,405 28 2,543
Depreciation charge 16 9 946 10 981
Disposals -60 0 -623 -9 -692
Depreciation and impairment
losses 31 December 2022 16 59 2,728 29 2,832
Carrying amount at 31 December 2022 141 68 1,600 8 1,818
Set out below are the carrying amounts of lease liabilities (included under interest-bearing liabilities) and the
movements during the period.
DKK million 2023 2022
As at 1 January 1,878 1,242
Additions/Remeasurement 1,578 1,676
Instalments -875 -940
Disposals -44 -88
Foreign exchange adjustments 30 -11
Total lease liabilities at 31 December 2,567 1,878
Lease liabilities expiring within the following periods from the balance sheet date:
DKK million 2023 2022
Within 1 year 1,038 930
1-3 years 790 423
3-5 years 645 293
After 5 years 488 562
Total lease liability, non-discounted 2,961 2,208
Lease liabilities are recognised in the balance sheet as follows:
DKK million 2023 2022
Non-current liabilities 1,628 1,022
Current liabilities 939 856
Total lease liabilities 2,567 1,878
1 Primarily relates to sale and
leaseback operation of
three vessels during 2023
2 Primarily relates to the
Group internal charter
contracts.
DFDS Annual Report 2023 Parent Financial Statements 155 / 179
Note 11 Investments in subsidiaries
DKK million 2023 2022
Cost at 1 January 9,368 8,832
Additions
1
2,556 539
Disposals -23 -3
Cost at 31 December 11,901 9,368
Accumulated impairment losses at 1 January -7 9 -445
Disposals 0 2
Impairment losses
2
-358 0
Reversal of prior year impairment losses
2
1 364
Accumulated impairment losses at 31 December -436 -7 9
Carrying amount at 31 December 11,465 9,289
Reference is made to the company overview in the consolidated financial statements note 5.10. The carrying
amount of investments in subsidiaries is tested for impairment at least at year-end.
Note 10 Right-of-use assets and lease liabilities (continued)
The following amounts are recognised in the income statement:
DKK million 2023 2022
Expenses relating to low-value assets (included in cost of sales and administration) -4 -3
Interest expenses on lease liabilities -89 -86
Depreciation, ships -877 -946
Depreciation, other non-current assets -34 -36
Gain arising from sale and leaseback transactions 95 0
Total amount recognised in the income statement -909 -1,070
The following amounts from leases are recognised in the statement of cash flows:
DKK million 2023 2022
Net cash flows from operating activities, gross -4 -3
Interest etc. paid -89 -86
Net cash flows from operating activities, net -93 -89
Net cash flows from financing activities -875 -940
Total cash outflow from leases -968 -1,029
In 2023 the Parent company paid DKK 964m (2022: DKK 1,027m) regarding lease agreements whereof interest
expenses related to lease liabilities amount to DKK 89m (2022: DKK 86m), and instalments of lease liability amount
to DKK 875m (2022: DKK 940m).
There is no material impact on other comprehensive income. At 31 December 2022 the Parent company was
committed to low-value leases where the total commitment was DKK 13m (2022: DKK 12m). The Parent Company
has no lease contracts including fixed and variable payments.
Note 10 Right-of-use assets and lease liabilities (continued)
The Parent company as a lessor
The Parent company has entered into several operating leases of its ferries. Future minimum receivable under non-
cancellable operating leases as at 31 December are as follows:
Operating lease commitments (lessor)
DKK million 2023 2022
Minimum lease payments (income)
Ferries
Within 1 year 312 353
1-3 years 442 577
3-5 years 0 177
Total ferries 754 1,107
The specified minimum payments are not discounted. Operating lease- and rental income recognised in the
income statement amounts to DKK 388m in 2023 (2022: DKK 415m). The contracts are entered into on usual
conditions.
1 2023: Addition relates to in
kind dividend from a
subsidiary (DKK 1,221m),
addition of McBurney Group
(DKK 1,195m), capital
injection in a subsidiary
(DKK 132m) and acquisition
of minority shares in AB
DFDS Seaways (DKK 8m).
2 Reference is made to
note 30.
DFDS Annual Report 2023 Parent Financial Statements 156 / 179
Note 12 Receivables
DKK million 2023 2022
Other non-current receivables 0 15
Interest-bearing receivables from subsidiaries 28 60
Total non-current receivables 28 75
Trade receivables 721 782
Interest-bearing receivables from subsidiaries
1
736 648
Non-interest-bearing receivables from subsidiaries 416 416
Receivables from associates and joint ventures 25 22
Other receivables and current assets 287 343
Total current receivables 2,185 2,210
The carrying amount of receivables is in all material respects equal to the fair value.
DKK million 2023 2022
Trade receivables that are past due, but not impaired:
Days past due:
Up to 30 days 72 122
31-60 days 7 8
61-90 days 4 5
91-120 days 4 4
More than 120 days 0 26
Past due, but not impaired 87 166
Movements in write-downs, which are included in the trade receivables:
Write-downs at 1 January 17 15
Write-downs 9 14
Realised losses -2 -3
Reversed write-downs -9 -8
Write-downs at 31 December 15 17
Note 12 Receivables (continued)
DKK million 2023 2022
Age distribution of write-downs:
Days past due:
Up to 30 days 0 1
31-60 days 0 0
61-90 days 0 0
91-120 days 0 1
More than 120 days 15 14
Write-downs at 31 December 15 17
Write-downs and realised losses are recognised in ferry and other ship operation and maintenance costs in the Income
statement. Reference is made to note 4.1 in the consolidated financial statements for a description of credit risk.
Note 14 Distribution to shareholders and treasury shares
Distribution to shareholders
A dividend of DKK 5.00 per share was paid in March 2023 (corresponding to DKK 281m excluding dividend on
treasury shares) and further, a share buyback of 1,071,428 shares was made during February 2023 for a total
purchase sum of DKK 300m – i.e., a total distribution to the shareholders in 2023 of DKK 581m. The Board of
Directors proposes to the 2024 Annual General Meeting in March 2024 that a dividend of DKK 3.00 per share is paid
in 2024 (corresponding to DKK 169m excluding dividend on treasury shares). In addition, DKK 431m will be
distributed through a share buyback under the Safe Harbour rules starting on 12 February 2024 and expiring on 31
December 2024.
Treasury shares
Information regarding the Parent company’s and the Group’s holding of treasury shares is identical. Reference is
made to the consolidated financial statements note 4.7.
Note 13 Inventories
DKK million 2023 2022
Bunker 117 126
Goods for sale 89 78
Write-down of inventories end of year -7 -22
Total inventories 198 183
Write-down of inventories during the year is an income of DKK -14m (2022: expense of DKK 6m).
1 The carrying amount of
Interest-bearing receivables
from subsidiaries relates to
current credit facilities that
are made available to
subsidiaries.
DFDS Annual Report 2023 Parent Financial Statements 157 / 179
Note 15 Deferred tax
2023
DKK million
Land and
buildings,
terminals and
other equipment Provisions
Tax loss
carried
forward Total
Deferred tax at 1 January 6 0 0 6
Recognised in other comprehensive income 1 -1 0 0
Adjustment regarding prior years recognised in
the income statement 0 0 0 0
Deferred tax at 31 December, net 7 -1 0 6
2022
DKK million
Land and
buildings,
terminals and
other equipment Provisions
Tax loss
carried
forward Total
Deferred tax at 1 January 6 0 -9 -3
Recognised in other comprehensive income 0 0 11 11
Adjustment regarding prior years recognised in
the income statement 0 0 -2 -2
Deferred tax at 31 December, net 6 0 0 6
DKK million 2023 2022
Deferred tax is recognised in the balance sheet as follows:
Deferred tax liabilities 6 6
Deferred tax at 31 December, net 6 6
By joining the tonnage taxation scheme, DFDS A/S is subject to the requirements of the scheme until end of 2031.
DFDS A/S is liable to a contingent tax that may realise at the withdrawal from the tonnage taxation scheme. DFDS
A/S controls the withdrawal and has no plans to withdraw from the scheme and consequently no deferred tax has
been recognised.
Note 16 Share based payment
Information regarding long-term incentives for the Parent company and the Group is identical. Reference is made
to the consolidated financial statements note 5.3.
Employee recognition
In recognition of the contribution made by DFDS’ employees in a year with exceptional challenges, the Board of
Directors has 22 December 2020 awarded up to 50 shares free of charge to each employee. The shares will vest
over a three-year period from January 2021 to December 2023 on a straight-line basis. Only employees working
through the full vesting period will be entitled to the shares. If an employee retires or leaves his job because of
disability during the period until December 2023 the employee is entitled to the full number of shares when the
employee leaves. The shares are in most countries awarded as a phantom share programme whereby the entitled
employees will receive a cash payment in December 2023 equal to the value of 50 DFDS shares.
In total 2,362 employees are at award date entitled to the shares. Based on historical attrition rates for each
country the total expected number of shares to be transferred to the employees is 81,382 of which 16,262 are
phantom shares (cash) and 65,120 as shares.
34,680 shares have been transferred during 2023 (2022: none). Vesting of shares for 2023 is an expense of DKK 5m
(2022: DKK 4m).
Year of grant
Exercise
price
Market
price at
grant date
Expected
volatility
Risk-free
interest rate
Expected
dividend per
share (DKK)
at grant
date
Expected
term
Fair value
per share at
time of
granting
2020 Special
Reward 0.00 267.00 34.87% -0.55% 6.33 3 years 247.87
DFDS Annual Report 2023 Parent Financial Statements 158 / 179
Note 17 Pension and jubilee liabilities
The Parent company contributes to defined contribution plans as well as defined benefit plans. The majority of the
pension plans are funded through payments to independent insurance companies responsible for the pension
obligation towards the employees (defined contribution plans). In these plans the Parent company has no legal or
constructive obligation to pay further contributions irrespective of the financial situation of these insurance
companies or the return of the underlying investments. Pension costs from such plans are expensed in the income
statement when incurred. The Parent company has minor defined benefit plans. The defined benefit plans are
pension plans that yearly pay out a certain percentage of the final salary the employee has when the employee
retires. The pensions are paid out as from retirement and during the remaining life of the employee. The percentage
of the salary is dependent of the seniority of the employees. The defined benefit plans typically include a spouse
pension.
Based on actuarial calculations the defined benefit plans show the following liabilities:
DKK million 2023 2022
Provision for jubilee liabilities 9 9
Total actuarial liabilities 9 9
Note 18 Other provisions
DKK million 2023 2022
Other provisions at 1 January 46 112
Addition from acquisition of enterprises 17 7
Provisions made during the year 7 1
Used during the year -7 -54
Reversal of unused provisions -7 -19
Other provisions at 31 December 56 46
Other provisions are expected to be payable in:
0-1 year 49 16
1-5 years 0 24
After 5 years 7 6
Other provisions at 31 December 56 46
Of the Parent company’s provision of DKK 56m (2022: DKK 46m), DKK 38m (2022: DKK 31m) is net present value of
earn-out agreements regarding acquisitions; DKK 7m (2022: DKK 7m) is restructuring provisions, DKK 3m (2022:
DKK 1m) is redelivery provisions, and DKK 7m (2021: DKK 6m) is other provisions.
DFDS Annual Report 2023 Parent Financial Statements 159 / 179
Note 19 Interest-bearing liabilities
DKK million 2023 2022
Issued corporate bonds
1
992 283
Bank loans and mortgage on ferries and other ships 2,191 2,650
Lease liability 1,628 1,022
Total interest-bearing non-current liabilities 4,811 3,955
Issued corporate bonds
1
265 0
Bank loans and mortgage on ferries and other ships 806 2,079
Lease liability 939 856
Payables to subsidiaries
2
1,767 1,687
Total interest-bearing current liabilities 3,778 4,622
Total interest-bearing liabilities 8,589 8,576
The fair value of the interest-bearing liabilities amounts to DKK 8,591m (2022: DKK 8,587m). The fair value
measurement is categorised within level 3 in the fair value hierarchy except for the part that relates to issued
corporate bonds of nominal NOK 1,900m for which the fair value measurement is categorised within level 2 due to a
limited active market. The fair value of the financial liabilities is determined as the present value of expected future
repayments and interest rates. The Group’s actual borrowing rate for equivalent terms is used as the discount rate.
The fair value of the issued corporate bonds nominal NOK 1,900m has been calculated based on the quoted bond
price in March 2023 and August 2023 which is the latest quoted price (2022: quoted bond price in June 2019). DKK
1,373m of the Interest-bearing liabilities in the Parent company fall due after five years (2022: DKK 1,905m). No
unusual conditions in connection with borrowings are made. The loan agreements can be settled at fair value plus
a small surcharge, whereas premature settlement of the corporate bonds requires a repurchase of the bonds.
Reference is made to note 23 for financial risks, etc.
DKK million 2023 2022
DKK 3,569 4,446
EUR 2,941 3,120
SEK 514 371
NOK 1,363 340
GBP 192 292
USD 9 7
Total interest-bearing liabilities 8,589 8,576
Note 20 Changes in liabilities arising from financing activities
The table below discloses the cash as well as non-cash changes in Interest-bearing liabilities, Derivative financial
instruments related to issued corporate bonds and payables to subsidiaries, non-interest-bearing. The changes
arising from cash flows form part of the cash flows from financing activities in the statement of cash flows.
Non-cash changes
DKK million
1 Jan.
2023
Cash
flows
Foreign
exchange
move-
ments
New/
disposed/
remea-
sured
leases
Fair value
changes
Other
changes
31 Dec.
2023
Changes in 2023
Interest-bearing liabilities:
Bank loans and mortgage
on ferries 4,729 -1,733 3 0 0 -2 2,998
Issued corporate bonds 283 981 -8 0 0 1 1,257
Lease liabilities 1,878 -875 31 1,534 0 0 2,567
Payables to subsidiaries,
interest-bearing 1,687 81
3
0 0 0 0 1,767
8,576 -1,546 26 1,534 0 -1 8,589
Derivative financial
instruments:
Derivatives related to issued
corporate bonds 8 0 0 0 20 0 28
Other:
Payables to subsidiaries,
non-interest-bearing 172 539
3
0 0 0 0 711
Total liabilities from
financing activities 8,757 -1,007 26 1,534 20 -1 9,329
Receivables from subsidiaries -55
3
Total cash flows -1,062
1 The Parent company has
issued a 5-year corporate
bond in 2019 of NOK 400m.
During 2023 the Group has
issued two corporate
bonds of NOK 1,000m
and NOK 500m respectively
(DKK 992m). Reference is
made to the consolidated
financial statements
note 4.5.
2 The carrying amount of
Interest-bearing payables
to subsidiaries relates to
deposit facilities that are
made available to sub-
sidiaries.
3 Cash flows related to
payables/receivables from
subsidiaries are presented
net in the statement of cash
flows under financing
activities in the line “Change
in Group internal financing,
net” by DKK 564m.
DFDS Annual Report 2023 Parent Financial Statements 160 / 179
Note 21 Other payables
DKK million 2023 2022
Holiday pay obligations, etc. 183 158
Payables to subsidiaries 711 172
Payables to associates and joint ventures 3 12
Public authorities (VAT, duty, etc.) 23 30
Other payables 46 45
Accrued interests 10 11
Total other payables 977 428
Note 22 Information on financial instruments
DKK million 2023 2022
Carrying amount per category of financial instruments
Financial assets measured at fair value:
Derivatives, related to operating activities 56 100
Derivatives, related to interest-bearing activities 96 192
Financial assets measured at amortised cost:
Trade receivables, receivables from subsidiaries, receivables from associates and
joint ventures, other receivables and cash 2,581 2,728
Financial assets measured at fair value through the income statement:
Securities 1 1
Financial liabilities measured at fair value:
Derivatives, related to operating activities -59 -111
Derivatives, related to interest-bearing activities -52 -8
Financial liabilities measured at amortised cost:
Interest-bearing liabilities, leases, trade payables, payables to subsidiaries,
payables to associates and joint ventures and other payables -10,759 -10,469
Total -8,136 -7,567
Note 20 Changes in liabilities arising from financing activities
(continued)
Non-cash changes
DKK million
1 Jan.
2022
Cash
flows
Foreign
exchange
move-
ments
New/
disposed/
remea-
sured
leases
Fair value
changes
Other
changes
31 Dec.
2022
Changes in 2022
Interest-bearing liabilities:
Bank loans and mortgage
on ferries 2,818 1,914 0 0 0 -2 4,729
Issued corporate bonds 1,230 -898 -49 0 0 1 283
Lease liabilities 1,242 -940 -11 1,587 0 0 1,878
Payables to subsidiaries,
interest-bearing 1,946 -259
1
0 0 0 0 1,687
7,235 -183 -61 1,587 0 -2 8,576
Derivative financial
instruments:
Derivatives related to issued
corporate bonds 77 -101 0 0 32 0 8
Other:
Payables to subsidiaries,
non-interest-bearing 126 46
1
0 0 0 0 172
Total liabilities from
financing activities 7,438 -239 -61 1,587 32 -2 8,757
Receivables from subsidiaries -366
1
Total cash flows -604
1 Cash flows related to
payables to/receivables
from subsidiaries are
presented net in the
statement of cash flows
under financing activities in
the line “Change in Group
internal financing, net” by
DKK -579m.
DFDS Annual Report 2023 Parent Financial Statements 161 / 179
Note 23 Financial and operational risks
DFDS’ risk management policy
The description of DFDS’ risk management policy, financial risks and capital management is identical for the Group
and the Parent company. Reference is made to the consolidated financial statements note 4.1.
The following specifications for the Parent company are different to the similar specifications for the Group.
Financial risks
Interest rate risks
An increase in the interest rate of 1%-point compared to the actual interest rates in 2023 would, other things being
equal, have increased net interest payments by DKK 24m for the Parent company in 2023 (2022: DKK 27m). A
decrease in the interest rate of 1%-point compared to the actual interest rates in 2023 would, other things being
equal, have had a positive effect of DKK 24m (2022: DKK 10m).
Liquidity risks
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
Note 22 Information on financial instruments (continued)
Hierarchy of financial instruments measured at fair value
The table below ranks financial instruments carried at fair value by valuation method. The different levels have
been defined as follows:
• Level 1: Quoted prices in an active market for identical type of instrument, i.e. without change in form or content
(modification or repackaging).
• Level 2: Quoted prices in an active market for similar assets or liabilities or other valuation methods where all
material input is based on observable market data.
• Level 3: Valuation methods where possible material input is not based on observable market data.
2023
Level 1 Level 2 Level 3
Derivatives, financial assets 0 152 0
Securities, financial assets 0 0 1
Derivatives, financial liabilities 0 -111 0
Total 0 41 1
2022
Level 1 Level 2 Level 3
Derivatives, financial assets 0 291 0
Securities, financial assets 0 0 1
Derivatives, financial liabilities 0 -119 0
Total 0 172 1
Derivative financial assets and liabilities are all measured at level 2. Reference is made to note 4.1 in the
consolidated financial statements for description of the valuation method.
Securities, financial assets measured at fair value through the income statement comprise other shares and equity
investments as well as other investments of DKK 1m (2022: DKK 1m). These consist of minor unlisted shares and
investments.
DFDS Annual Report 2023 Parent Financial Statements 162 / 179
Note 23 Financial and operational risks (continued)
DKK million 2023
0-1 year 1-3 years 3-5 years
After 5
years
Non-derivative financial assets
Cash 381 0 0 0
Trade receivables 721 0 0 0
Non-interest bearing receivables from subsidiaries 416 0 0 0
Interest bearing receivables from subsidiaries 736 0 0 0
Receivables from associates and joint ventures 25 0 0 0
Other receivables and current assets 287 28 0 0
Derivative financial assets
Commodity swaps 13 0 0 0
Interest swaps & caps 0 0 11 78
Cross currency interest rate swaps 0 7 0 0
Forward exchange contracts and currency swaps 7 11 11 14
Total financial assets 2,585 46 22 92
Non-derivative financial liabilities
Bank loans and mortgages on ferries and other ships -959 -1,217 -312 -1,055
Issued corporate bonds -341 -74 8 -355 0
Lease liabilities (non-discounted) -1,038 -7 9 0 -645 -488
Trade payables -1,398 0 0 0
Payables to associates and joint ventures -3 0 0 0
Payables to subsidiaries -711 0 0 0
Other payables -56 0 0 0
Derivative financial liabilities
Interest rate swaps and caps 0 -5 -12 0
Cross currency interest rate swaps -34 0 -1 0
Forward exchange contracts and currency swaps -18 -13 -13 -15
Total financial liabilities -4,559 -2,772 -1,338 -1,558
Total -1,974 -2,726 -1,316 -1,467
Besides the contractual maturities the Parent company has issued guarantees for DKK 6,304m (2022: DKK
7,013m). These are not presented in the above table as the contractual maturity is not possible to predict.
Reference is made to note 27.
Assumptions for the maturity table
The maturity analysis is based on undiscounted cash flows including estimated interest payments. Interest
payments are estimated based on existing market conditions. The non-discounted cash flows related to derivative
financial liabilities are presented at gross amounts unless the parties according to the contract have a right or
obligation to settle at net amount.
Note 23 Financial and operational risks (continued)
DKK million 2022
0-1 year 1-3 years 3-5 years
After 5
years
Non-derivative financial assets
Cash 489 0 0 0
Trade receivables 782 0 0 0
Non-interest bearing receivables from subsidiaries 416 15 0 0
Interest bearing receivables from subsidiaries 648 60 0 0
Receivables from associates and joint ventures 22 0 0 0
Other receivables and current assets 343 3 0 0
Derivative financial assets
Commodity swaps 27 0 0 0
Interest swaps & caps 0 90 38 64
Forward exchange contracts and currency swaps 2 24 17 30
Total financial assets 2,729 192 55 94
Non-derivative financial liabilities
Bank loans and mortgages on ferries and other ships -2,193 -743 -811 -1,619
Issued corporate bonds -14 -290 0 0
Lease liabilities (non-discounted) -930 -423 -293 -562
Trade payables -1,650 0 0 0
Payables to associates and joint ventures -12 0 0 0
Payables to subsidiaries -1,859 0 0 0
Other payables -51 0 0 0
Derivative financial liabilities
Commodity swaps -1 0 0 0
Cross currency interest rate swaps 0 -8 0 0
Forward exchange contracts and currency swaps -48 -17 -17 -28
Total financial liabilities -6,758 -1,481 -1,121 -2,209
Total -4,029 -1,289 -1,066 -2,115
DFDS Annual Report 2023 Parent Financial Statements 163 / 179
Note 24 Non-cash operating items
DKK million 2023 2022
Change in provisions 2 -14
Change in write-down of inventories for the year -14 6
Change in provision for defined benefit plans and jubilee obligations 2 1
Vesting of share option plans and employee shares expensed in the income
statement 22 16
Non-cash operating items 12 9
Note 25 Change in working capital
DKK million 2023 2022
Change in inventories -1 -26
Change in receivables, such as trade receivables, prepaid costs, etc. 114 -149
Change in current liabilities, such as trade payables, deferred income, current
account with joint ventures, etc. -226 455
Change in working capital -114 280
Note 26 Acquisition and divestments of enterprises,
activities, and non-controlling interests
Acquisition and disposals
During 2023 the Parent company has purchased McBurney Transport Group. For further details reference is made
to the consolidated financial statements note 5.5.
Note 27 Guarantees, collateral and contingent liabilities
Guarantees issued by banks on behalf of the Parent company amount to DKK 25m. The Parent company has
issued guarantees of DKK 6,304m (2022: DKK 7,013m) of which the Parent company issued guarantees on behalf of
subsidiaries of 6,179m (2022: DKK 6,865m). In addition, the Parent company has issued guarantees up to DKK
125m (2022: DKK 148m) to defined benefit pension schemes in the UK.
Certain ferries with a total carrying amount of DKK 2,984m (2022: DKK 4,298m) have been pledged as security for
mortgage on ferries with a total carrying amount of DKK 1,803m (2022: DKK 2,954m).
Note 28 Contractual commitments
DKK million 2023 2022
Contractual commitments, term 0-1 year 49 0
Contractual commitments, term 1-5 years 27 0
Total contractual commitments (undiscounted) 76 0
The Parent’s contractual commitments in 2023 include the purchase of EU Allowances related to the EU Emissions
Trading System (ETS) regulations. The purchase of ETS allowances has been done via forward instruments with
physical delivery. These instruments are treated as off-balance sheet items as the own-use exemption under IFRS 9
is applied.
There are no contractual commitments in 2022.
DFDS Annual Report 2023 Parent Financial Statements 164 / 179
Note 30 Impairment testing
Introductions
DFDS impairment test all non-current assets at least once every year and in case of indication of impairment.
For a description of the definition of cash-generating units, basis for impairment testing and calculation of
recoverable amount reference is made to the consolidated financial statements note 3.1.4.
Impairment tests of investments in subsidiaries, associate, and joint venture
Impairment tests are carried out for each subsidiary, associate, and joint venture in the Parent company if there is
indication of impairment. The individual companies are regarded as the lowest cash-generating units.
The expected net cash flows are assessed on entity level based of approved forecasts for 2024 and business plans
beyond 2024. The projections include the estimated impact of long-term strategic decisions and assessment of
opportunities for future growth and required investments. A Gordon growth cash flow model has been applied for
calculating the NPV and a long-term growth rate of 2.3% has been applied.
Determination of discount rate
The Parent company uses a discount rate determined for each subsidiary, associate or joint venture, according to
the business area to which it belongs. The applied discount rate for 2023 is based on the WACC assumptions for
the Group with reference to note 3.1.4. The WACC applied is 7.4% (2022: 7.6%).
2023
In 2023 investments in subsidiaries have been impaired by DKK 358m in total as the calculated value-in-use of the
individual investments is lower than the book value. Write-downs in previous years have been reversed by DKK 1m.
The reversals are recognised under financial items.
2022
In 2022 investments in subsidiaries have been impaired by DKK 0m in total as the calculated value-in-use of the
individual investments is lower than the book value. Write-downs in previous years have been reversed by DKK
364m. The reversals are recognised under financial items.
Note 29 Related party transactions
Description of the Parent company’s related parties is equal to the description for the Group. Reference is made to
the consolidated financial statements note 5.8.
DKK million 2023
Sale of
service
Purchase
of service Receivables Liabilities
Capital
contribution
Associates and joint ventures 13 211 25 3 0
Subsidiaries 1,329 1,465 1,179 2,520 131
2022
Sale of
service
Purchase
of service Receivables Liabilities
Capital
contribution
Associates and joint ventures 14 131 22 12 0
Subsidiaries 1,403 1,381 1,124 1,930 108
Note 31 Events after the balance sheet date
On 10 January 2024, the Group completed the acquisition of FRS Iberia/Maroc, a key player on the strait of
Gibraltar short-sea ferry market connecting Spain and Morocco. Reference is made to the consolidated financial
statements note 5.5.
On 16 February 2024, DFDS awarded 103,780 restricted share units and 444,804 share options to the Executive
Board, a number of key employees and other managerial staff. The theoretical value is DKK 37m calculated
according to the Black-Scholes model.
DFDS Annual Report 2023 Parent Financial Statements 165 / 179
Note 32 Accounting policies
The 2023 financial statements have been prepared in accordance with IFRS Accounting Standards (IFRS) as
adopted by the EU and additional Danish disclosure requirements for annual reports of listed companies.
Critical accounting estimates and assessments
In the process of preparing the Parent company financial statements, a number of accounting estimates and
judgements have been made that affect assets and liabilities at the balance sheet date and income and expenses
for the reporting period. Management regularly reassesses these estimates and judgements, partly on the basis of
historical experience and a number of other factors in the given circumstances.
In the opinion of Management, the accounting estimates and judgements mentioned in note 1 under section
“Significant estimates and judgements” of the consolidated financial statement are also significant in the
preparation of the Parent company financial statements. Furthermore, impairment test of investments in
subsidiaries requires critical accounting estimates and assessments.
Impairment testing of investments in subsidiaries
Impairment testing of investments in subsidiaries is carried out if there is indication of impairment. The impairment
tests are based on the expected future cash flows for the tested subsidiaries. For further details of estimates and
assessments relating to investments in subsidiaries reference is made to note 30.
Management is of the opinion that, except for impairment testing of investments in subsidiaries, no accounting
estimates or judgements are made in connection with the presentation of the Parent company financial
statements that are material to the financial reporting, other than those disclosed in section 1 to the consolidated
financial statements.
Description of accounting policies
The Parent company accounting policies are consistent with the accounting policies described in the consolidated
financial statements with the following exceptions:
Business combinations
In the Parent company common control acquisitions (and disposals) of enterprises and activities are measured and
recognised in accordance with the ‘book value method’ by which differences, if any, between purchase price and
book value of the acquired/sold enterprise/activity are recognised directly in equity.
Translation of foreign currencies
Foreign exchange adjustments of balances accounted for as part of the total net investment in enterprises that
have a functional currency other than DKK are recognised in profit for the year as financial income and costs in the
Parent company financial statements. Likewise, foreign exchange gains and losses on the portion of loans and
derivative financial instruments that has been entered into to hedge the net investment in these enterprises are
recognised directly in the profit for the year as financial income and costs.
Dividends from investments in subsidiaries, associates and joint ventures
Dividends from investments in subsidiaries, associates and joint ventures are recognised in the Parent company’s
Income statement for the year in which the dividends are declared. If distributions exceed the subsidiary’s, the
associate’s or the joint venture’s comprehensive income for the period, an impairment test is carried out.
Investments in subsidiaries, associates and joint ventures
Investments in subsidiaries, associates and joint ventures are measured at cost in the Parent company’s balance
sheet. Impairment testing is carried out if there is any indication of impairment. The carrying amount is written down
to the recoverable amount whenever the carrying amount exceeds the recoverable amount. The impairment loss is
recognised as financial cost in profit for the year. If the Parent company has a legal or constructive obligation to
cover a deficit in subsidiaries, associates and joint ventures, a provision for this is recognised.
Equity
Reserves for development costs
The reserve for development costs comprises of DFDS’ development costs corresponding to the capitalised
development cost in the balance sheet. The reserve is non distributable and cannot be used to cover deficit. The
reserve is dissolved upon disposal of the development cost either by sale or if the development cost is no longer
part of the entity’s operation. The reserve will then be transferred to the distributable reserves. The reserve will be
reduced, and the distributable reserves increased concurrently with either depreciations or write-downs.
For a description of the hedging reserve, revaluation of securities and treasury shares, reference is made to
consolidated financial statements, note 4.6.
IFRS 16 practical expedient
From 1 January 2024, DFDS will no longer apply the practical expedient not to account for each lease component
within lease contracts separately. DFDS will instead separate the non-lease components from the lease
components. In addition, DFDS has elected to no longer capitalise short-term leases of ferries, but only those
expected to be extended. For additional information refer to the Group consolidated financial statements.
Preliminary assessment indicates that this change in policy will reduce the 31 December 2023 right-of-use assets
(DKK -438m), right-of-use liabilities (DKK -464m) and retained earnings (DKK -26m). Depreciation in 2023 is
expected to be reduced by DKK -291m and operating cost to increase by DKK 273m. Minor impact is expected on
interest cost, profit on disposal of non-current assets, exchange rate gain/loss, prepaid cost and other payables.
Note 32 Accounting Policies (continued)
DFDS Annual Report 2023 Parent Financial Statements 166 / 179
Executive Board
Board Of Directors
DFDS Annual Report 2023 168 / 179Reports
Independent Auditor’s Reports
Report on the audit of the financial statements
DFDS Annual Report 2023 169 / 179Reports
DFDS Annual Report 2023 170 / 179Reports
CVR no 33 77 12 31
DFDS Annual Report 2023 171 / 179Reports
Freight ferries (ro-ro) Year built GT
Lane metres
TEU Deployment
North Sea
Ficaria Seaways 2006/09/11 37,939 4,731 Gothenburg-Immingham
Begonia Seaways 2004/09/14 37,939 4,731 Gothenburg-Ghent
Ark Germania 2014 33,313 3,000 342 Esbjerg-Immingham
Freesia Seaways 2005/09/14 37,939 4,731 Gothenburg-Immingham
Humbria Seaways 2020 60,465 6,690 Gothenburg-Ghent
Primula Seaways 2004/14/16 37,985 4,650 Gothenburg-Ghent
Flandria Seaways 2020 60,465 6,690 Gothenburg-Zeebrugge
Petunia Seaways 2004/13 32,523 3,831 Gothenburg-Immingham
Magnolia Seaways 2003/13 32,523 3,831 Vlaardingen-Felixstowe
Selandia Seaways 1998/13 24,803 2,772 Cuxhaven-Immingham
Hollandia Seaways 2019 60,465 6,690 Vlaardingen-Immingham
Scandia Seaways 2021 60,465 6,690 Vlaardingen-Immingham
Suecia Seaways 1999/11/14 24,613 2,772 180 Vlaardingen-Felixstowe
Britannia Seaways 2000/11/14 24,613 2,772 180 Cuxhaven-Immingham
Transporter 1991 6,620 1,250 296 Oslo-Immingham
Tulipa Seaways 2017 32,391 4,076 Vlaardingen-Felixstowe
Acacia Seaways 2017 32,835 4,076 Vlaardingen-Immingham
Ark Dania 2014 33,313 3,000 342 Esbjerg-Immingham
Freight ferries (ro-ro) Year built GT
Lane metres
TEU Deployment
Mediterranean
Fadiq 2017 32,770 4,076 Istanbul-Sete
Ephesus Seaways 2019 60,465 6,690 Istanbul-Trieste
Troy Seaways 2019 60,465 6,690 Istanbul-Trieste
Zeugma Seaways 2008/17/19 34,236 4,350 Istanbul-Sete
Assos Seaways 2005/19 29,060 3,726 Istanbul-Trieste
Artemis Seaways 2005/20 29,060 3,726 Mersin-Trieste
Dardanelles Seaways 2006/19 29,060 3,726 Istanbul-Sete
Paqize 2010 29,429 3,663 Mersin-Trieste
Cappadocia Seaways 2002/20 26,525 3,214 Istanbul-Trieste
Aspendos Seaways 2005/19 29,060 3,726 Istanbul-Sete
Olympos Seaways 2002/20 26,525 3,214 Istanbul-Sete
Pergamon Seaways 2013/20 31,595 4,094 Istanbul-Trieste
Galata Seaways 2010/19 34,215 4,350 Istanbul-Trieste
Myra Seaways 2009/17/19 34,236 4,350 Mersin-Trieste
Sumela Seaways 2008/18/19 34,236 4,350 Istanbul-Sete
Pol Maris 2010 29,004 3,663 Istanbul-Trieste
Pol Stella 2009 29,004 3,663 Istanbul-Trieste
Alf Pollak 2018 32,936 4,076 Istanbul-Trieste
Maria Grazia Onorato 2019 32,936 4,076 Istanbul-Sete
Mont Ventoux 1996 18,469 2,025 Marseille-Tunis
Ark Futura 1996/00 18,725 2,308 246 Marseille-Tunis
Baltic Sea
Finlandia Seaways 2000 11,530 1,899 300 Klaipeda-Køge-Fredericia
Channel
Botnia Seaways 2000 11,530 1,899 300 Tilbury-Calais
Chartered out/not allocated
Belgia Seaways 2000 21,005 2,475 Idle
Gallipoli Seaways 2001/20 26,525 3,214 Chartered out
Midas 1990 5,873 1,032 Stand-by
1 Chartered (bareboat charter)
2 Chartered (time charter)
3 TEU: 20 foot container unit
4 Short-sea day ferry
5 VSA: Vessel sharing agreement
with owner/charterer
6 SCA: Slot charter agreement
with DFDS
Fleet list year-end 2023
DFDS Annual Report 2023 173 / 179Other
Ownership shares of fleet, year-end 2023
Average age of owned ferries
in route network, year-end 2023
Gross tons fleet distribution, year-end 2023
24%
7%
1%
68%
Freight ferries (RoRo)
Freight and passenger ferries (RoPax)
Passenger cruise ferries
Sideport and container ships
Freight ferries
(RoRo)
Freight ferries
(RoRo)
73%
16
Freight and passenger
ferries (RoPax)
Freight and passenger
ferries (RoPax)
75%
17
Passenger
cruise ferries
Passenger
cruise ferries
Sideport and
container ships
100%
34
0%
Fleet list year-end 2023 continued
Freight and passenger ferries (ro-pax)
Year built GT
Lane metres
Passengers TEU Deployment
Channel
Dunkerque Seaways 2005 35,923 2,900 780 Dover-Dunkirk
Delft Seaways 2006 35,923 2,900 780 Dover-Dunkirk
Dover Seaways 2006 35,923 2,900 780 Dover-Dunkirk
Côte Des Flandres 2005 33,940 1,900 2,000 Dover-Calais
Côte Des Dunes 2001 33,796 1,900 2,473 Dover-Calais
Côte d'Opale 2021 40,331 3,100 927 Dover-Calais
Côte d'Albâtre 2006 18,940 1,270 600 Newhaven-Dieppe
Seven Sisters 2006 18,940 1,270 600 Newhaven-Dieppe
Athena Seaways 2007/15 26,141 2,593 462 Rosslare-Dunkerque
Optima Seaways 1999 25,263 2,300 336 Rosslare-Dunkerque
Baltic Sea
Victoria Seaways 2009/14 25,675 2,500 600 Kiel-Klaipeda
Aura Seaways 2021 56,043 4,500 600 Kiel-Klaipeda
Regina Seaways 2010/15 25,666 2,500 600 Karlshamn-Klaipeda
Luna Seaways 2022 56,043 4,500 600 Karlshamn-Klaipeda
Sirena Seaways 2002/03 22,382 2,056 623 Paldiski-Kappelskär
Chartered out/not allocated
Patria Seaways 1991 18,332 1,800 213 Chartered out
Passenger cruise ferries
Pearl Seaways 1989/01/05/14 40,231 1,482 2,168 Oslo-Frederikshavn-Copenhagen
Crown Seaways 1994/05/14 35,498 1,370 2,044 Oslo-Frederikshavn-Copenhagen
King Seaways 1987/93/06 31,788 1,410 1,534 Newcastle-Ijmuiden
Princess Seaways 1986/93/06 31,356 1,410 1,364 Newcastle-Ijmuiden
Sideport ships
Lysvik Seaways 1998/04 7,409 160 Westcoast Norway-Continent/UK
Lysbris Seaways 1999/04 7,409 160 Westcoast Norway-Continent/UK
DFDS Annual Report 2023 174 / 179Other
Ferry route: Sailings typically between only
two ports, and hence over reasonably short
distances, on a fixed sailing schedule, often
with one or more daily departures. Route
can transport both passengers and freight
trailers according to demand and ferry
types deployed
Green transport: Transport by ferries,
trucks, or rail powered by green electricity
or sustainable fuels
Intermodal: Transport solution that
combines different transport modes
(road, rail, ferry)
Lane metre: An area on a ship deck one
lane wide and one metre long. Used to
measure freight volumes
Logistics solution: A solution for operating
one or more parts of a supply chain be-
sides transport. Typically includes storage,
cross docking of consignments, picking
and packing, assembly, and distribution.
Plus information processing, e.g. booking
and tracking
MGO: Marine gas oil, also known as marine
diesel with sulphur content at or below 0.1%
AGM: Annual general meeting
BAF: Bunker adjustment factor, surcharge
for price changes in bunker fuel oil
Bareboat charter: Lease of a ship without
crew for an agreed period
Bunker: Oil-based fuel used by ferries
Charter: Lease of a ship for
an agreed period
Charter-out: Leasing of a ship to
an external party for an agreed period
Door-door transport solution: Transport
of goods in a trailer from customer pick-up
point to final destination
Ferry: Vessel with one or more ramps that
enables passenger cars and trailers, with
or without an accompanying truck, to
be rolled on and off. Freight can also be
carried by trailer equivalents, i.e. a rolling
cassette carrying industrial goods that do
not fit in a trailer or containers.
Non-allocated items: Corporate costs not
allocated to divisions
Northern Europe: The Nordic countries,
Benelux, the United Kingdom, Ireland,
France, Germany, Poland, and the
Baltic nations
Power-to-X: Process that converts
electricity to sustainable fuels,
for example via electrolysis
Ro-pax: Combined freight and
passenger ferry
Ro-ro: Roll on-roll off: Freight ferry on which
trailers and trailer equivalents are driven or
tugged on and off
Scrubber: Exhaust gas cleaning system
that removes suplhur oxides from a vessel’s
boiler exhaust gases
Short sea: Shipping between destina-
tions with a duration of typically 1-3 days.
Converse is deep-sea shipping between
continents with a duration of weeks
Sideport ship: Ship with ramps for loading/
unloading via ports in the ship's side
Space charter: Third-party lease of space on
a ferry deck
Stevedoring: Loading and unloading ferries
in a port terminal
Time charter: Lease of a ferry with crew for
an agreed period
Tonnage tax: Taxation levied on ships ac-
cording to ship tonnage, i.e. weight of ships
Trailer: An unpowered vehicle for transport
of goods pulled by a truck
Vessel sharing agreement/slot charter:
Agreement between two or more parties
on the distribution and use of a ship's
freight-carrying capacity
Whistleblower scheme: System enabling
employees or stakeholders to report anon-
ymously on potential breaches to rules,
guidelines or regulations
Glossary
DFDS Annual Report 2023 175 / 179Other
Return on invested capital (ROIC)
NOPAT
Average invested capital
ROIC before acquisition intangibles
(ROIC BAI), %
NOPAT excluding amortisation on
acquisition intangible assets
Average invested capital excluding
acquisition intangible assets
Weighted average cost of capital (WACC)
Average capital cost for net interest-bearing
liabilities and equity, weighted according to
the capital structure
Acquisition intangibles
Intangible assets recognised in connec-
tion with acquisition of enterprises and
activities (goodwill and other non-current
intangible assets)
Free cash flow, FCFE
Cash flow from operating activities minus
cash flow from investing activities
Operating profit before depreciation
(EBITDA)
Profit before interest, tax, depreciation,
amortisation, and impairment on non-
current assets
Operating profit (EBITA)
Profit before interest, tax, and amortisation
Operating profit (EBIT)
Profit before interest and tax
EBIT margin
Operating profit (EBIT)
Revenue
Net operating profit after taxes (NOPAT)
Operating profit (EBIT) minus payable tax
for the period adjusted for the tax effect of
net finance cost
Invested capital
Non-current intangible and tangible assets
plus net working capital (non-interest
bearing current assets minus non-interest
bearing current liabilities) minus pension
and jubilee liabilities and other provisions
Adjusted free cash flow, FCFE
Free cash flow excluding acquisitions/di-
vestments minus payment of lease liabilities
and currency contracts related to leases
Return on equity
Profit for the year excluding
non-controlling interests
Average equity excluding
non-controlling interests
Equity ratio
Equity
Total assets
Net interest-bearing debt (NIBD)
Interest-bearing liabilities (excluding pro-
vision for pensions) minus interest-bearing
assets minus cash and securities
Financial leverage, times
NIBD
EBITDA including pro forma EBITDA for
acquired companies
Earnings per share (EPS)
Profit for the year excluding
non-controlling interests
Weighted average number
of circulating shares
P/E ratio
Share price at year-end
Earnings per share (EPS)
FCFE yield
Adjusted free cash flow
Market value at year-end plus
non-controlling interests
Total distribution yield
Total distribution to shareholders
Market value at year-end plus
non-controlling interests
Cash pay-out ratio
Total distribution to shareholders
Adjusted free cash flow
Dividend return
Paid dividend per share
Share price at beginning of year
Equity per share
Equity excluding non-controlling
interests at year-end
Number of circulating shares
at year-end
Price/book value
Share price at year-end
Equity per share at year-end
Market value
Number of shares, excluding treasury
shares, times share price
No. of ferries
Owned and chartered ferries and other ships
Roundings may in general cause variances
in sums and percentages in this report.
1 This key figure, ratio or elements thereof are not
defined or deviate from the definitions of the
Danish Finance Society.
x 100
x 100
x 100
x 100
x 100
x 100
x 100
x 100
Financial definitions
DFDS Annual Report 2023 176 / 179Other
Non-office based
Percentage of women of total number of
non-office based employees (end of period)
Office based
Percentage of women of total number of
office based employees (end of period)
Senior management
Percentage of women of total number of
senior management positions defined as
EVPs and VPs (end of period)
Managers
Percentage of women of total number of
management positions, excluding senior
management, defined as positions with re-
sponsibility for at least one other employee
(end of period)
Lost time injury frequency (LTIF), sea
Number of registered work-related acci-
dents disabling a seafarer to work for more
than 24 hours per one million exposure hours
Lost time injury frequency (LTIF), land
Number of registered work-related acci-
dents disabling a land-based employee
work for more than 24 hours per one million
exposure hours
Total distance sailed
Total distance sailed for vessels in
commercial operation
CO
2
emissions per GT nautical mile
(Own fleet)
Emissions measured as gCO
2
per gross
tonnage nautical mile for vessels in com-
mercial operation (Own fleet)
CO
2
emissions per GT nautical mile
(Route network)
Emissions measured as gCO
2
per gross
tonnage nautical mile for vessels in com-
mercial operation (Route network)
Total fuel consumption (Route network)
Total consumption of heavy fuel oil (HFO)
and marine gas oil (MGO) for vessels in
commercial operation (Route network)
Spills (>1 barrel)
Incidents of oil spills larger than one barrel
into the sea from vessels in operation
Total workforce
Percentage of women in total workforce
(end of period)
Colleagues
Number of fatalities among employees
caused by work-related accidents
Contractors
Number of fatalities among third-party con-
tractors caused by work-related accidents
while operating for DFDS
Representation of women on Board
of Directors (AGM elected members)
Percentage of women of total number of
members of the Board of Directors, exclud-
ing staff appointed members, elected at
the Annual General Meeting
Board nationality – non-Danish
(AGM elected members)
Percentage of non-Danish members of total
number of members of the Board of Direc-
tors elected at the Annual General Meeting
Independent directors
(AGM elected members)
Percentage of independent directors of total
number of members of the Board of Directors
elected at the Annual General Meeting
Attendance at Board meetings
(All Board members)
Percentage of total number of Board meet-
ings attended (Not gender specific)
Whistle-blower reporting
Number of cases of whistle-blower reports
ESG definitions
DFDS Annual Report 2023 177 / 179Other
from exporters of livestock to producers and
exporters of processed products like butter
and bacon. DFDS also opened new routes to
connect Danish and Scandinavian cities with
each other and the world. All this was based
on a fleet of more than 120 ships, among the
largest in the world at the time.
For many years DFDS transported emi-
grants seeking a better future to the USA.
During the world wars, DFDS kept up sup-
plies of critical food and coal to people in
Europe helping to uphold jobs and industry.
After the second world war, DFDS’ fleet, many
now powered by diesel engines, kept moving:
Goods from USA to Europe, people between
countries, goods between UK and mainland
Europe, between the Mediterranean and Scan-
dinavia, and to and from Iceland. At the end of
DFDS has enabled trade and travel since the
company was founded in 1866 by C.F.Tietgen’s
merger of four Danish steamship companies.
Goods and coal from the UK, the world’s in-
dustrial locomotive at the time, were sailed to
Scandinavia and other regions where markets
for textiles and energy, amongst other things,
were developing. The new shipping lines con-
versely created access for farmers in these
regions to supply the UK’s rapidly growing
demand for food and raw materials.
DFDS developed quickly in line with the
growth it helped create. At the turn of the
century, DFDS’ steam ships also connected
farmers around the Black Sea with the new
Russian industrial area around St. Peters-
burg. Routes were launched to the USA
bringing back soya cake as feed to European
farmers. This supported their transformation
the 1960’es, DFDS were the among the first to
develop a roll-on-roll-off solution, paving the
way for more efficient shipping of freight units
such as trailers carrying industrial cargo.
The logistics activities were developed from
1972 to complement the ferry routes with door-
door road transport solutions and to provide
solutions in other markets as well. Following
a restructuring in 2000 to re-focus the Group
on the ferry network, the scope of the logistics
activities were realigned to overlap with the
geographic regions of the ferry network.
Since then the network has been further
expanded and strengthened in and around
Europe through organic growth and ac-
quisitions. Key milestones have been the
addition of Norfolkline in 2010, operating
on the North Sea and the Channel, and
UN RoRo in 2018. The latter significantly
expanded the route network in the Medi
-
terranean and at the beginning of 2024,
DFDS also entered the ferry market on the
Strait of Gibraltar through an acquisition.
In recent years, several larger logistics
acquisions have added further capabili-
ties to the network.
Moving for all to
grow since 1866
Towards the end of 2023, a new strategy
was launched focused on unlocking value
by leveraging the expanded network to
drive organic growth.
*Abbreviation in Danish for
The United Steamship Company.
DFDS Annual Report 2023 178 / 179Other
