Q2 2021 Interim Report
SOLID GROWTH IN
FREIGHT VOLUMES
• Q2 EBITDA increased 77% to DKK 897m
• Mediterranean continued strong performance
• Passenger volumes remain impacted by travel restrictions
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 2
Q2 2021
• Freight EBITDA up DKK 400m
• Significant recovery from 2020-
lockdowns
• EBITDA for Mediterranean route
network improved DKK 191m
• ESG-reporting expanded
Outlook 2021, unchanged
• EBITDA of DKK 3.2-3.6bn
• Revenue growth of 20-25%
• No passenger recovery from 2020
expected in 2021
“Our freight activities delivered strong
results in Q2, also compared to 2019.
Not least the Mediterranean route net-
work continues to do well. We look for-
ward to welcoming passengers back
once travel restrictions are eased and
uncertainty reduced.”
Torben Carlsen, CEO
Revenue increased DKK 1.4bn or 51% to DKK 4.2bn
following lockdowns in Q2 2020. The growth was driven
almost entirely by the freight activities, i.e. freight ferry
and logistics, as passenger activities remained negatively
impacted by tight travel restrictions in the quarter.
Freight EBITDA before special items increased DKK 400m
or 71% to DKK 961m driven mainly by the Mediterranean,
North Sea and Channel business units. The passenger
EBITDA improved DKK 4m to DKK -70m. Total EBITDA
increased 77% to DKK 897m compared to 2020.
Both freight and passenger earnings were significantly
negatively impacted by lockdowns in Q2 2020. Compared
to Q2 2019, a normal operating year, the freight EBITDA
was up DKK 268m or 38% while the passenger EBITDA
was down DKK 369m.
Outlook 2021
The outlook for freight activities remains positive while
passenger travel is picking up slower than expected.
Consolidation of earnings from the HSF Logistics Group is
now expected in September 2021. Revenue is still
expected to grow 20-25%. The range for EBITDA before
special items is unchanged DKK 3.2-3.6bn (2020:
DKK 2.7bn) compared to the upgrade on 23 April 2021.
The outlook is detailed on page 9.
Highlights Q2
17 August 2021. Conference call today at 10.00am CET
Access code: 553848736# Phone numbers to the call: DK +45 35445577, US +1 631 913 1422, UK +44 333 300 0804
KEY FIGURES
2021
2020
2020-21
2019-20
2020
DKK m
Q2
Q2
Change, %
LTM
LTM
Change, %
FY
Revenue
4,213
2,798
50.6
15,340
15,092
1.6
13,971
EBITDA before special items
897
507
77.0
3,263
3,083
5.8
2,732
EBIT before special items
394
48
n.a.
1,349
1,156
16.7
858
Profit before tax and special items
315
-32
n.a.
1,035
893
15.8
583
Profit before tax
328
11
n.a.
878
878
0.0
466
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 3
2021
2020
2021
2020
2020-21
2020
DKK m
Q2
Q2
H1
H1
LTM
Full year
Income statement
Revenue
4,213
2,798
7,981
6,612
15,340
13,971
• Ferry Division*
2,960
1,808
5,554
4,436
10,564
9,445
• Logistics Division*
1,554
1,147
2,980
2,541
5,740
5,301
• Non-allocated items
136
156
273
295
469
491
• Eliminations*
-437
-312
-827
-660
-1,434
-1,268
Operating profit before depreciation (EBITDA) and
special items
897
507
1,647
1,117
3,263
2,732
• Ferry Division*
765
392
1,407
917
2,805
2,315
• Logistics Division*
126
95
227
190
499
462
• Non-allocated items
6
20
14
10
-41
-45
Profit/loss on disposal of non-current assets, net
1
2
2
3
3
5
Operating profit (EBIT) before special items
394
48
672
181
1,349
858
Special items, net
12
43
2
42
-157
-117
Operating profit (EBIT)
406
91
674
222
1,192
741
Financial items, net
-78
-80
-155
-115
-314
-275
Profit before tax
328
11
519
107
878
466
Profit for the period
306
8
479
89
831
442
Profit for the period excluding
non-controlling interest
301
11
468
89
812
433
Capital
Total assets
-
-
28,515
26,635
-
27,006
DFDS A/S' share of equity
-
-
10,928
10,295
-
10,511
Equity
-
-
11,027
10,375
-
10,600
Net interest-bearing debt
-
-
11,688
12,136
-
11,361
Invested capital, end of period
-
-
22,875
22,670
-
22,121
Invested capital, average
22,668
22,746
22,486
22,656
22,508
22,500
2021
2020
2021
2020
2020-21
2020
DKK m
Q2
Q2
H1
H1
LTM
Full year
Cash flows
Cash flows from operating activities, before finan-
cial items and after tax
995
611
1,487
1,044
3,216
2,772
Cash flows from investing activities
-164
-338
-511
-969
-1,159
-1,618
• Acquisition of enterprises and activities
0
0
0
-14
0
-14
• Other investments, net
-164
-338
-511
-955
-1,159
-1,603
Free cash flow
831
272
977
75
2,056
1,155
Repayment of lease liabilities and lease interest
-227
-173
-422
-357
-745
-679
Adjusted free cash flow (FCFF)
604
100
554
-282
1,311
475
Key operating and return ratios
Average number of employees
-
-
8,120
8,355
8,187
8,213
Number of ships
-
-
81
68
-
70
Revenue growth (reported), %
50.6
-34.0
20.7
-18.5
9.8
-15.8
EBITDA-margin, %
21.3
18.1
20.6
16.9
21.3
19.6
Operating margin, %
9.3
1.7
8.4
2.7
8.8
6.1
Revenue/invested capital average, (times)
-
-
-
-
0.7
0.6
Return on invested capital (ROIC), %
-
-
-
-
4.9
3.0
ROIC before special items, %
-
-
-
-
5.6
3.5
Return on equity, %
-
-
-
-
7.7
4.2
Key capital and per share ratios
Equity ratio, %
-
-
38.7
39.0
-
39.3
Net interest-bearing debt/EBITDA, (times)
-
-
-
-
3.6
4.2
Earnings per share (EPS), DKK
5.24
0.20
8.15
1.55
14.16
7.56
Dividend paid per share, DKK
0.00
0.00
0.00
0.00
0.00
0.00
Number of shares, end of period, '000
-
-
58,632
58,632
-
58,632
Weighted average number of circulating shares,
'000
-
-
57,509
57,288
-
57,310
Share price, DKK
-
-
353.8
204.6
-
275.2
Market value
-
-
20,294
11,730
-
15,790
* 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.
Definitions on page 30.
Key figures
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 4
Quarterly reporting of selected key figures for ESG
(Environment, Social, Governance) is initiated in this
report. 2020 quarterly comparison figures are not
available.
ESG key figures
2021
2021
2021
2020
Environmental data
Unit
Q1
Q2
H1
Full year
Operated ships*
Number
64
67
67
66
Total number of days operated
Days
5,757
5,694
11,451
18,774
CO2e emissions
CO2 emissions per GT mile
gCO2
14.0
13.7
13.9
13.5
Energy consumption
Total marine fuel consumption
Tonnes HFOe
180,179
198,058
378,237
619,867
Fuel consumption per nautical mile
kg HFOe/Nm
141.1
137.2
139.0
135.8
Fuel consumption per GT-nautical mile
g/GT/Nm
4.5
4.4
4.4
4.3
Oil spills
Spills (>1 barrel)
Number
0
0
0
1
2021
2021
2021
2020
Social data
Unit
Q1
Q2
H1
Full year
Number of employees (end numbers)
FTE
8,059
8,241
-
7,944
Representation of women
Total workforce gender ratios:
%
24
24
-
23
• At sea
%
15
16
-
15
• On land
%
28
28
-
27
Senior management
%
17
17
-
16
Managers
%
10
10
-
13
Employees
%
26
26
-
26
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mill. hours
5.3
3.4
4.3
4.0
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mill. hours
6.7
5.0
5.8
5.9
Fatalities
Colleagues
Accidents
0
1
1
0
Contractors
Accidents
0
0
0
2
2021
2021
2021
2020
Governance data
Unit
Q1
Q2
H1
Full year
Representation of women in the Board
%
33
33
33
33
Attendance at Board meetings
%
100
100
100
96
*The difference between Operated ships and Number of ships on previous page is ships operated through space charter agreements.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 5
Market overview
The European freight market stabilised and growth picked
up during Q2 following the Brexit transition that impacted
Q1 2021.
The current growth in the freight market, however,
exceeds capacity due to shortages of truck drivers and
equipment, particularly in the UK. This has led to a rise in
haulage costs, longer lead times and less reliable supply
chains as well as congestion in some ports. The market
imbalance is expected to continue in Q3.
The UK will phase in full import border controls by
1 January 2022, including pre-notification requirements
for products of animal origin by 1 October 2021.
Trade between the EU and Turkey continued to grow in Q2
as the depreciation of the Turkish Lira, TRY, continued to
benefit Turkish exports. Economic activity was robust in
the quarter as growth in the EU and other regions
supported industrial production. The Turkish economy is
expected to continue to grow, primarily driven by the
export sector.
The European market for passenger ferry travel remained
negatively impacted by tight travel restrictions in Q2
2021. Covid-19 mutations and variations among countries
in the speed of vaccination rollouts entail that travel
restrictions still prevent a pickup in ferry travel.
The main changes in average exchange rates in Q2 2021
vs Q2 2020 were a depreciation of TRY/DKK by 25% and
appreciation of NOK/DKK by 9%.
Major events in Q2
Channel journey time shortened for freight customers
through space charter agreement
To enhance the ferry offering to freight customers through
shorter waiting times, as well as to improve the efficiency
of the ferry infrastructure between the UK and the EU,
DFDS entered on 25 May 2021 a mutual space charter
agreement with P&O Ferries on the Dover-Calais ferry
route.
The space charter agreement will enable freight customers
to board the next available sailing on the Dover-Calais
route, regardless of which of the two companies is
operating the crossing. All commercial activities and
relationships with freight customers remain entirely under
the control of each operator.
The new space charter agreement will shorten the ferry
journey time by up to 30 minutes and reduce queuing in
Dover and Calais. The Dover-Calais space charter
agreement is expected to become operational around
1 October 2021.
Sale of Belgian logistics property
On 7 June 2021, DFDS entered into an agreement to sell a
property in Ghent, Belgium, with effect from 26 July 2021.
The property includes offices, a workshop for transport
equipment and land of 24,400 m
2
.
The Ghent logistics office will after completion of the sale
move to offices in the port that also houses DFDS’ ferry
operations. The expected accounting gain from the sale of
DKK 30m will be reported under Special items in Q3 2021.
Sale and purchase of freight ferries
In Q2 2021, a smaller freight ferry (ro-ro), Gothia Seaways,
was sold. At the same time, DFDS acquired a larger freight
ferry, Meleq, from the buyer. The accounting gain of from
the sale of DKK 20m is reported under Special items in
this quarter.
Major events after Q2
Oslo-Frederikshavn-Copenhagen route reopened
The Oslo-Frederikshavn-Copenhagen route was reopened
on 2 July 2021 following a lay-up of the route’s two
Management review
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 6
ferries since November 2020 and January 2021,
respectively.
New unaccompanied freight ferry route opened between
Calais and Sheerness
On 12 July 2021, a new freight ferry route between Calais
and Sheerness was opened in response to increasing
demand for additional capacity for unaccompanied freight
(trailers) between France and the UK. The route has one
daily round trip operating seven days per week, deploying
one freight ferry (ro-ro).
Closing of the acquisition of HSF Logistics Group
On 26 January 2021, DFDS entered into an agreement to
acquire 100% of HSF Logistics Group. The company is one
of Europe’s leading cold chain logistics providers to meat
producers and other food producers that operate
temperature-controlled supply chains.
Closing of the transaction is now expected to take place in
September 2021 subject to regulatory approval.
The HSF Logistics Group has annual revenue of DKK 2.8bn
and EBITDA of around DKK 400m. The company has 1,800
employees and operates around 700 trucks and 1,700
reefer trailers, including both owned and leased units.
New Channel ferry boosts freight capacity and
passenger experience
On 4 August 2021, a combined freight and passenger ferry
newbuilding was deployed between Dover and Calais on
the Channel. The ferry’s 3,100 lane metre deck capacity is
an increase of 78% compared to the older ferry it is
replacing. Fuel consumption per transported freight unit is
expected to decrease by around 50% contingent on
utilisation. The passenger on board experience is
enhanced, including a tripling of retail space to 1,100m
2
.
The new ferry is chartered for a 10-year period and part of
DFDS’ fleet renewal program to provide efficient,
sustainable and reliable ferry services for both freight
customers and passengers.
ESG-actions and plans
From this quarter, a selection of ESG (Environment, Social,
Governance) key figures are reported, see page 4, as well
as an overview of key actions and plans.
DFDS’ Climate Action Plan covers both short-term actions
to reduce emissions from existing assets, mainly ferries
and transport equipment, and transformative long-term
actions to become a zero-emission company.
Environment – short-term actions and plans
A number of actions to lower ferry fuel consumption and
emissions are being implemented in 2021, including:
• Latest route planning and propulsion control
technology installed on one ferry in Q2
• Anti-fouling hull paint applied to five ferries to reduce
friction in the water and hence fuel consumption
• LED lighting installed on freight decks on three ferries
• Installation on five ferries of new injection system to
optimise engine combustion and save fuel (PMI VIT)
• Shore power facility in Copenhagen expected to
become operational during Q3 2021
Fuel and emission savings from the applications are
continuously documented and subsequently applied to
the rest of the fleet as appropriate.
On the logistics side, DFDS expects in August 2021 to
operate its first electric truck in a collaboration with Volvo
Trucks. The goal is initially to gain mutual learnings and
insights regarding battery capacity, route planning,
charging and driver experiences.
Environment – transformative actions and plans
Sustainable Fleet Projects, a new focused unit within
DFDS, has been established with the aim of deploying a
zero-emission freight ferry in the route network by 2025.
Both retrofitting and a newbuilding options are being
analysed and considered.
Social actions and plans
DFDS’ ambition to increase female representation among
senior management requires a talented and diverse
employee force, including an improved gender balance.
A number of actions to develop a diverse talent pool are
being implemented:
• Female hiring ratio for land positions raised to 39% in
H1 2021 which will increase the gender ratio across all
levels in the organisation
• Diversity training of senior management and
development of D&I (Diversity & Inclusion) toolbox
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 7
• New talent mentor program to support development
of talented employees for future Director and VP
positions.
Fatality
On 6 April 2021, a Turkish seafarer died from injuries
sustained in a tragic fatal accident in the Port of Sête
during loading of a freight ferry. Learnings from the
accident have been integrated in DFDS’ Safety First
program to avoid similar accidents in the future.
Governance
Each member of DFDS’ Executive Management Team was
earlier this year assigned responsibility for key ESG goals.
Financial performance
Revenue
The Group’s Q2 revenue was DKK 4,213m, an increase of
50.6% compared to 2020.
The Group’s H1 revenue was DKK 7,981m, an increase of
20.7% compared to 2020.
Ferry Division’s Q2 revenue increased 63.7% to
DKK 2,960m as freight volumes and revenue have
recovered since the lockdowns in 2020. In addition,
revenue was increased by the launch of two new freight
routes - Ireland-France and Turkey-Spain - and standby
capacity agreements with DfT (UK Department for
Transport). Passenger revenue was significantly
negatively impacted by travel restrictions in both 2021
and 2020.
Logistics Division’s Q2 revenue increased 35.5% to
DKK 1,554m. The increase was likewise mainly due to the
recovery in activity since the lockdowns in 2020.
Operating profit before depreciation (EBITDA) and
special items
The Group’s Q2 EBITDA increased 77% to DKK 897m.
The Group’s H1 EBITDA increased 48% to DKK 1,647m
from DKK 1,117m in 2020.
Ferry Division’s Q2 EBITDA increased 95% to DKK 765m.
The freight ferry activities increased EBITDA DKK 369m or
79% to DKK 835m while EBITDA for the passenger
activities increased DKK 4m to DKK -70m.
The main driver of the freight ferry result was the recovery
of activity from the 2020-lockdowns. The opening of new
routes and the standby capacity agreements also
contributed to the result. The increase in the result for the
passenger activities was mostly due to duty-free sales.
Logistics Division’s Q2 EBITDA increased 33% to
DKK 126m, likewise mainly due to the recovery of activity
from the 2020-lockdowns. New customs clearance
activities also contributed to the result.
The Group’s Q2 result includes compensations of DKK 26m
from government Covid-19 programs.
Depreciation and operating profit (EBIT) before
special items
Depreciation in Q2 of DKK 502m increased 9% compared
to 2020. The increase was primarily due to depreciation
on additional chartered freight ferries.
Depreciation in H1 of DKK 971m increased 4% compared
to 2020.
The Group’s Q2 EBIT before special items increased
DKK 346m to DKK 394m. For H1, EBIT before special
Revenue
DKK m
Q2 2021
Q2 2020
Change, %
Change
Ferry Division*
2,960
1,808
63.7
1,152
Logistics Division*
1,554
1,147
35.5
407
Non-allocated items
136
156
-12.4
-19
Eliminations
-437
-312
-40.0
-125
DFDS Group
4,213
2,798
50.6
1,415
* North Sea port logistics activities have been transferred from the Ferry Division to the Logistics Division per 1 January 2021. 2020 comparison figures are re-
stated accordingly.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 8
items increased by DKK 491m from DKK 181m in 2020 to
DKK 672m.
Special items and operating profit (EBIT) after special
items
In Q2 2021, special items were a net income of DKK 12m
mainly derived from an accounting gain from the sale of a
freight ferry.
In H1 2021, special items were a net income of DKK 2m.
The Group’s Q2 EBIT after special items increased
DKK 315m to DKK 406m. For H1, EBIT after special items
increased by DKK 452m to DKK 674m.
Financial items
Total finance, net in Q2 was a cost of DKK 78m which was
a decrease of DKK 2m compared to Q2 2020. The net
interest cost increased DKK 11m following higher interest
costs caused by a temporary waiver of loan covenants.
The waiver was cancelled by DFDS in May 2021. This
increase was more than offset by a positive variance on
net currency adjustments.
Total finance, net in H1 was a cost of DKK 155m which
was an increase of DKK 40m compared to H1 2020.
Profit before special items and tax
The Q2 profit before special items and tax increased
DKK 348m to DKK 315m. The profit for the period
increased DKK 298m to DKK 306m. For H1, the profit
before special items and tax was DKK 517m and the profit
for the period was DKK 479m.
Operating profit before depreciation (EBITDA) & special items
DKK m
Q2 2021
Q2 2020
Change, %
Change
Ferry Division*
765
392
95.1
373
Logistics Division*
126
95
33.0
31
Non-allocated items
6
20
-71.2
-14
DFDS Group
897
507
77.0
390
EBITDA-margin, %
21.3
18.1
n.a.
3.2
* North Sea port logistics activities have been transferred from the Ferry Division to the Logistics Division per 1 January 2021. 2020 comparison figures are re-
stated accordingly.
Associates and joint ventures, profits on disposals and depreciation
DKK m
Q2 2021
Q2 2020
Change, %
Change
EBITDA before special items
897
507
77.0
390
Associates and joint ventures
-2
-2
20.2
0
Profit on disposals
1
2
-52.9
-1
Depreciation and impairment
-502
-459
-9.4
-43
EBIT before special items
394
48
n.a.
346
Financial items
DKK m
Q2 2021
Q2 2020
Change, %
Change
Interests, net
-72
-61
-18.6
-11
Foreign exchange gains/losses, net
-2
-16
85.3
13
Other items, net
-4
-4
-9.2
0
Total finance, net
-78
-80
2.3
2
0
200
400
600
800
1,000
1,200
1,400
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS
2019 2020 2021
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 9
Earnings per share
Q2 earnings per share (EPS) increased to DKK 5.24
compared to DKK 0.20 in Q2 2020.
For H1, earnings per share (EPS) increased to DKK 8.15
from DKK 1.55 in 2020.
Cash flow and investments
The Q2 cash flow from operating activities was
DKK 1.0bn. The conversion ratio was 112% as the cash
flow was strengthened by DKK 128m from a decrease in
working capital. The Q2 free cash flow (FCFF) was
DKK 831m and DKK 604m adjusted for payment of lease
liabilities including interest. Net investments in Q2
amounted to a negative cash flow of DKK 164m that
included DKK 113m of ferry investments.
The Q2 cash flow from financing activities was negative
by DKK 566m. This included a net cash flow from loans of
DKK 333m, payment of lease liabilities of DKK 203m and
a cash outflow of DKK 75m from purchase of treasury
shares to hedge option programs. The Q2 net cash flow
was positive by DKK 159m. Cash and cash equivalents
thus increased to DKK 1,681m at the end of Q2.
For H1, the cash flow from operating activities was
DKK 1.5bn and the free cash flow (FCFF) was
DKK 977m and DKK 554m adjusted for payment of lease
liabilities including interest. Net investments in H1
amounted to a negative cash flow of DKK 511m. The cash
flow from financing activities was negative by DKK 400m
bringing the H1 net cash flow to a plus of DKK 420m. Cash
and cash equivalents thus increased to DKK 1,681m at the
end of H1.
Invested capital and ROIC
Invested capital was DKK 22.9bn at the end of Q2 2021
which was 1% above the same period in 2020. The
average invested capital in Q2 2021 was on level with Q2
2020.
The return on invested capital, ROIC, for Q2 2021 (last
twelve months) improved to 5.6% before special items
compared to 3.5% for 2020.
Capital structure
At the end of Q2 2021 net-interest-bearing debt (NIBD)
was DKK 11.7bn, a decrease of 4% compared to the end of
Q2 2020. Financial leverage, as measured by the ratio of
NIBD to EBITDA before special items, was a ratio of 3.6
compared to 4.2 at year-end 2020.
Equity
Equity amounted to DKK 11,027m at the end of Q2 2021,
including non-controlling interests of DKK 99m. This was
an increase of 6% compared to the end of Q2 2020. Total
comprehensive income for Q2 2021 was DKK 231m.
Transactions with owners in Q2 2021 included purchase of
treasury shares for DKK 75m to hedge option programs.
The equity ratio was 39% at the end of Q2 2021 which
was on level with Q2 2020.
Outlook 2021
The Group’s EBITDA outlook range is unchanged although
the outlook for the two divisions has been adjusted.
Key freight outlook assumptions for 2021
The freight market continued to grow across the regions of
the route network during Q2 2021. Competing ferry
operators have or are planning to add capacity in certain
corridors in response to the growth.
In the logistics market, haulage costs are increasing due to
a general lack of drivers and equipment, particularly in the
UK.
Key outlook assumptions for HSF Logistics Group
The acquisition of HSF Logistics Group is assumed to be
consolidated from September 2021 compared to
previously from July 2021. The consolidation is now
expected to include revenue of around DKK 0.9bn and
EBITDA before special items of around DKK 100m. The
acquisition is subject to regulatory approval.
Key passenger outlook assumptions for 2021
The EBITDA for passenger services across business units -
Passenger, Channel and Baltic Sea - was reduced by
around DKK 1bn in 2020 compared to 2019 due to travel
restrictions imposed to limit the spread of Covid-19.
The easing of travel restrictions is taking considerably
longer than foreseen and it is now assumed that there will
be no material pickup in passenger ferry volumes in H2
2021 compared to 2020. It is therefore expected that
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 10
passenger earnings in 2021 will remain on level with
2020. It was previously expected that around 25% of the
decrease in 2020 would be regained in 2021.
Revenue outlook
The Group’s revenue is still expected to increase by 20-
25% compared to 2020. The main growth drivers are
organic freight growth, addition of HSF Logistics Group
and opening of new routes.
EBITDA outlook before special items The outlook for the
Group’s EBITDA before special items is unchanged a range
of DKK 3.2-3.6bn (2020: DKK 2.7bn).
The EBITDA outlook for the Ferry Division has been raised
to DKK 2,650-2,950m from previously DKK 2,550-2,850m
to reflect freight ferry earnings developing above
expectations offsetting passenger earnings developing
below expectations.
The EBITDA outlook for the Logistics Division has been
reduced to DKK 600-700m from previously DKK 700-
800m to reflect a later consolidation of the HSF Logistics
Group than expected.
See also the outlook table for the divisional split.
EBIT outlook before special items
The expected range of the Group’s EBIT before special
items is unchanged DKK 1.2-1.6bn (2020: DKK 858m).
Investments
Investments of around DKK 2.8bn are expected in 2021 of
which DKK 0.9bn is the initial payment for HSF Logistics
Group.
Investments in 2021 are expected to comprise:
• Acquisition of HSF Logistics Group: DKK 930m
• Ferry newbuildings: DKK 800m
• Dockings and ferry upgrades: DKK 500m
• Port terminals and other equipment: DKK 200m
• Cargo carrying equipment and warehouses, mainly
related to Logistics Division: DKK 250m
• Other investments, including IT and digital: DKK 150m.
Various risks and uncertainties pertain to
the outlook.
The most important among these are
possible major changes in the demand
for ferry – freight and passengers - and
logistics services. For DFDS, such
demand is to a large extent linked to the
level of economic activity in primarily
Europe, especially Northern Europe and
in particular the UK, as well as adjacent
regions, particularly Turkey.
OUTLOOK 2021*
DKK m
Adjusted outlook
2021
Previous outlook
2021
2020
Revenue growth
20-25%
20-25%
13,971
EBITDA before special items
3,200-3,600
3,200-3,600
2,732
Per division:
Ferry Division
2,650-2,950
2,550-2,850
2,332
Logistics Division*
600-700
700-800
445
Non-allocated items
-50
-50
-45
EBIT before special items
1,200-1,600
1,200-1,600
858
Investments
-2,800
-2,800
-1,618
*Including consolidation of HSF Logistics Group assumed in September 2021
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 11
Demand can also be impacted by
competitor actions and extraordinary
events such as virus outbreaks. Covid-19
continues to constitute a significant risk,
particularly for the passenger services.
The outlook can moreover be impacted
by political changes, first and foremost
within EU and Turkey. The introduction
of a new trade agreement between the
EU and the UK, that is yet to be fully
implemented, and its possible
consequences constitutes an important
risk.
Changes in economic variables,
especially the oil price and exchange
rates, can furthermore impact earnings.
Future financial results may therefore
differ significantly from expectations.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 12
New Channel ferry deployed 4 August 2021
The ferry newbuilding, Côte d’Opale, has replaced one of the
six ferries operated on the Dover Strait by DFDS. Freight
capacity for accompanied trailers is increased 78% compared
to the replaced ferry. Retail space is more than tripled to
support duty-free sales between the UK and the EU.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 13
The division is organised in five
business units:
• North Sea
• Baltic Sea
• Channel
• Mediterranean
• Passenger
Q2 market, activity and result trends
Total Q2 freight volumes increased 32.0% compared to
2020 and increased 5.5% compared to 2019.
Total Q2 passenger volumes decreased 29.3% compared
to 2020 and decreased 94.1% compared to 2019.
North Sea
Q2 freight volumes were up 36.0% reflecting a recovery
from the lockdowns in 2020 and stabilisation of trade
between the EU and the UK following the Brexit transition
at the beginning of the year. The UK port terminals were
somewhat congested during the quarter mainly due to a
shortage of truck drivers in the UK.
Q2 EBITDA increased 50% to DKK 378m with all routes
contributing to the increase, including income from a
standby capacity agreement.
Baltic Sea
Q2 freight volumes were up 18.8% adjusted for route
changes. The growth reflects a recovery from the
lockdowns in 2020 and an increase in capacity between
Estonia and Sweden where a second ferry was deployed.
Activity levels were also higher on the other routes in the
network. Passenger volumes were 1.1% below 2020 as
lower volumes between Germany and Lithuania offset
more passengers between Estonia and Sweden.
Q2 EBITDA decreased 7% to DKK 111m as costs for
expanding capacity, including a higher net bunker cost,
offset the positive impact of higher freight volumes.
Channel
Q2 freight volumes were 19.9% above 2020 adjusted for
the new route between Ireland and France launched on 2
January 2021. The growth reflects a recovery from the
lockdowns in 2020. Volumes on the route between Ireland
and France remained high, even though capacity was
temporarily reduced due to a short-term lack of suitable
tonnage in the market.
Ferry Division
Ferry Division
2021
2021
2020*
2020*
2020-21
2020*
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue
2,594
2,960
5,554
4,436
2,628
1,808
2,469
2,540
10,564
9,445
EBITDA before special items
641
765
1,407
917
525
392
730
668
2,805
2,315
Share of profit/loss of associates and
joint ventures
-3
-2
-5
-4
-2
-2
-2
0
-7
-5
Profit/loss on disposal of non-current assets, net
1
0
1
0
0
0
1
0
2
1
Depreciation and impairment
-387
-420
-808
-753
-386
-368
-366
-390
-1,563
-1,509
EBIT before special items
251
343
595
160
137
23
363
278
1,236
802
EBIT margin before special items, %
9.7
11.6
10.7
3.6
5.2
1.3
14.7
11.0
11.7
8.5
Special items, net
0
20
20
79
0
79
-72
-105
-157
-98
EBIT
251
364
615
239
137
102
291
173
1,079
703
Invested capital, average
20,299
20,668
20,490
20,197
20,214
20,235
20,275
20,259
20,404
20,222
ROIC before special items, %
-
-
-
-
-
-
-
-
5.8
3.8
Average number of employees
-
-
5,223
5,567
-
-
-
-
5,381
5,452
Lane metres, '000
10,246
11,078
21,324
18,473
10,079
8,394
10,529
11,883
43,736
40,886
Tons, '000
167
147
314
360
194
166
138
166
618
664
Passengers, '000
83
109
192
731
579
152
578
186
959
1,498
* 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.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 14
Q2 passenger volumes were down 49.1% as tight travel
restrictions were upheld throughout the quarter. Duty-free
sales increased due to higher spend from truck drivers.
Q2 EBITDA increased DKK 72m to DKK 104m driven by the
launch of the new Irish route, a standby capacity
agreement and the introduction of duty-free sales.
Mediterranean
Q2 freight volumes increased 74.1% adjusted for the
opening of a new route between Turkey and Spain. The
growth reflects a recovery from the lockdowns in 2020,
particularly for automotive volumes, as well as continued
growth in the trade between Turkey and Europe.
Q2 EBITDA increased DKK 191m to DKK 257m driven by
the higher volumes and cost improvements as well as
better results for the port terminal and rail activities.
Passenger
Due to tight travel restrictions in the quarter, the route
between Norway and Denmark was suspended throughout
the quarter, but reopened on 2 July 2021. Both ferries
between the Netherlands and the UK operated in the
quarter to support freight volumes. Passenger volumes
were not material in either Q2 2021 or Q2 2020.
Q2 EBITDA decreased 19% to DKK -120m mainly due to
higher ferry operating costs. Wage costs were reduced but
offset by a decrease in compensations from government
Covid-19 programs.
Non-allocated items
These items primarily include external charter activities.
Q2 EBITDA increased 52% to DKK 36m.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 15
Ferry division
2021
2021
2020
2020
2020-21
2020
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
North Sea*
Revenue
971
1,117
2,088
1,651
944
707
816
953
3,858
3,420
EBITDA before special items
301
378
679
544
291
252
282
342
1,302
1,168
EBIT before special items
150
229
379
266
145
122
154
190
722
610
Invested capital
6,762
6,811
6,542
5,948
5,931
5,964
5,856
6,054
6,290
5,951
ROIC before special items, %
-
-
-
-
-
-
-
-
11.2
10.1
Lane metres freight, '000
3,358
3,609
6,967
6,006
3,350
2,657
3,264
3,758
13,989
13,028
Tons, '000
167
147
314
360
194
166
138
166
618
664
Baltic Sea
Revenue
306
361
667
630
323
307
327
310
1,304
1,268
EBITDA before special items
83
111
194
216
97
119
138
80
412
434
EBIT before special items
51
68
120
135
57
78
95
39
253
268
Invested capital
1,525
1,320
1,563
1,545
1,712
1,642
1,646
1,844
1,595
1,625
ROIC before special items, %
-
-
-
-
-
-
-
-
15.7
16.4
Lane metres freight, '000
1,104
1,199
2,303
2,240
1,140
1,100
1,099
1,094
4,497
4,434
Passengers, '000
40
53
94
93
39
54
69
47
209
209
Channel
Revenue
568
643
1,211
873
512
361
573
566
2,350
2,012
EBITDA before special items
74
104
178
71
39
32
135
129
441
334
EBIT before special items
-16
7
-9
-49
-22
-27
73
67
131
91
Invested capital
1,701
2,250
1,841
1,772
1,811
1,779
1,677
1,573
1,796
1,713
ROIC before special items, %
-
-
-
-
-
-
-
-
7.1
5.2
Lane metres freight, '000
4,531
4,923
9,454
8,343
4,404
3,939
5,016
5,672
20,142
19,031
Passengers, '000
38
50
87
465
367
98
406
119
612
989
Mediterranean
Revenue
670
743
1,413
912
581
331
529
631
2,572
2,071
EBITDA before special items
248
257
505
213
147
66
188
230
923
631
EBIT before special items
155
154
309
29
55
-26
90
126
525
245
Invested capital
9,558
9,408
9,500
9,867
9,858
9,910
9,798
9,535
9,642
9,787
ROIC before special items, %
-
-
-
-
-
-
-
-
5.3
2.4
Lane metres freight, '000
1,191
1,265
2,456
1,782
1,087
696
1,045
1,206
4,707
4,034
Passenger
Revenue
31
40
71
237
209
27
190
62
323
489
EBITDA before special items
-100
-120
-220
-188
-87
-101
-42
-143
-405
-373
EBIT before special items
-124
-147
-272
-276
-130
-146
-75
-172
-520
-524
Invested capital
629
731
645
801
871
673
634
575
648
722
ROIC before special items, %
-
-
-
-
-
-
-
-
-81.0
-73.1
Lane metres freight, '000
61
82
143
101
99
2
104
154
401
359
Passengers, '000
5
6
11
175
173
3
104
21
135
300
Non-allocated items
Revenue
86
102
188
213
102
111
91
132
411
436
EBITDA before special items
36
36
72
63
39
24
28
31
131
122
EBIT before special items
35
33
68
55
32
23
27
29
124
112
The invested capital in the quarter is shown as per the end of the period.
For the full year and LTM, the invested capital is shown as an average.
* North Sea port logistics activities have been transferred from the Ferry
Division to the Logistics Division per 1 January 2021. 2020 comparison
figures are restated accordingly.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 16
The division is organised in three
business units:
• Nordic
• Continent
• UK & Ireland
Q2 market, activity and result trends
Total Q2 logistics volumes increased 24.3% compared to
2020. Net adjustments for structural changes reduced
growth to 19.4%.
Nordic
Q2 transported units increased 18.2% adjusted for non-
comparable volumes. The growth reflects a recovery from
the lockdowns in 2020, particularly for automotive
volumes. UK traffics were negatively impacted by
shortage of truck drivers and equipment. Both the Finnish
and Baltic operations expanded activity in the quarter.
Q2 EBITDA increased DKK 17m to DKK 35m driven by
higher activity, especially for warehousing activities in
Sweden.
Continent
Q2 transported units increased 26.9% reflecting a
recovery in activity from the lockdowns in 2020. All
corridors contributed to the growth. Netherlands achieved
the highest growth across full- and part-loads as well as
special cargo loads. Belgian automotive volumes was
negatively impacted by chip shortages which caused
imbalances in traffics between Belgium and Scandinavia.
UK traffics were negatively impacted by shortage of truck
drivers and equipment.
Q2 EBITDA of DKK 41m was on level with 2020 as
margins were reduced by equipment and haulage cost
increases as well as imbalances between Belgium and
Scandinavia.
UK & Ireland
Q2 transported units increased 11.7% adjusted for non-
comparable volumes. The growth reflects a recovery from
the lockdowns in 2020, particularly for distribution of cold
chain volumes to the catering sector from locations in
both Scotland and England. Shortage of truck drivers
capped growth and increased haulage costs. Customs
clearance services were expanded for both food and non-
food customers.
Q2 EBITDA increased 41% to DKK 50m driven by the cold
chain activities and higher activity in most traffics,
including customs clearance services.
Logistics Division
Logistics Division
2021
2021
2020*
2020*
2020-21
2020*
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue
1,426
1,554
2,980
2,541
1,394
1,147
1,316
1,444
5,740
5,301
EBITDA before special items
101
126
227
190
95
95
150
123
499
462
Profit/loss on disposal of non-current assets, net
0
1
1
3
2
2
0
0
1
3
Depreciation and impairment
-62
-61
-123
-148
-74
-74
-74
-70
-267
-292
EBIT before special items
39
66
105
45
22
22
76
52
233
173
EBIT margin before special items, %
2.7
4.2
3.5
1.8
1.6
1.9
5.8
3.6
4.1
3.3
Special items, net
0
-19
-19
-4
0
-4
-7
-1
-27
-12
EBIT
39
46
85
40
22
18
69
51
206
161
Invested capital, average
1,469
1,497
1,473
1,712
1,737
1,727
1,584
1,465
1,517
1,613
ROIC before special items, %
-
-
-
-
-
-
-
-
12.5
8.5
Average number of employees
-
-
2,196
2,134
-
-
-
-
2,144
2,112
Units, '000
132
141
274
250
136
114
134
142
549
525
* 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.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 17
Logistics Division
2021
2021
2020
2020
2020-21
2020
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
Nordic*
Revenue
444
503
948
819
453
366
387
453
1,788
1,659
EBITDA before special items
31
35
67
50
32
18
40
41
147
131
EBIT before special items
13
16
29
10
12
-2
19
22
69
50
Invested capital
388
407
392
414
465
409
372
379
391
399
ROIC before special items, %
-
-
-
-
-
-
-
-
15.9
10.4
Units, '000 **
29.8
32.9
62.6
50.8
27.7
23.1
26.7
31.4
120.7
108.9
Continent*
Revenue
644
685
1,329
1,157
633
523
605
661
2,595
2,423
EBITDA before special items
31
41
71
69
28
41
55
41
168
166
EBIT before special items
6
18
24
11
-2
13
30
15
68
55
Invested capital
580
514
560
780
799
710
625
588
603
711
ROIC before special items, %
-
-
-
-
-
-
-
-
8.6
6.1
Units, '000
57.5
60.9
118.4
106.5
58.4
48.0
56.5
61.6
236.5
224.5
UK & Ireland*
Revenue
443
478
921
760
403
357
421
430
1,772
1,611
EBITDA before special items
39
50
89
70
34
36
55
41
184
165
EBIT before special items
20
31
51
24
12
11
28
16
95
67
Invested capital
545
561
521
518
527
544
507
458
523
504
ROIC before special items, %
-
-
-
-
-
-
-
-
14.4
10.6
Units, '000
45.2
47.6
92.8
92.5
49.9
42.6
50.3
49.0
192.1
191.8
Non-allocated items
Revenue
35
36
72
54
27
26
20
15
107
89
EBITDA before special items
0
0
0
0
0
0
0
0
0
0
EBIT before special items
1
0
1
0
0
0
-0
0
1
0
* 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.
** Excluding volumes related to automotive Logistics contract.
The invested capital in the quarter is shown as per the end of the period. For the full year and LTM, the invested capital is shown as an average.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 18
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 19
2021
2020
2021
2020
2020-21
2020
DKK m
Note
Q2
Q2
H1
H1
LTM
Full year
Revenue
3
Costs
Ferry and other ship operation and maintenance
-845
-442
-1,544
-1,293
-2,820
-2,569
Freight handling
-675
-488
-1,249
-1,122
-2,510
-2,383
Transport solutions
-856
-602
-1,710
-1,379
-3,236
-2,905
Employee costs
-789
-657
-1,535
-1,438
-2,960
-2,862
Costs of sales and administration
-152
-103
-295
-263
-552
-520
Operating profit before depreciation (EBITDA) and special items
Share of profit/loss of associates and joint ventures
-2
-2
-6
-4
-7
-5
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
-330
-285
-630
-584
-1,199
-1,153
Depreciation, other non-current assets
-172
-173
-341
-352
-710
-721
Impairment losses, other non-current assets
Operating profit (EBIT) before special items
Special items, net
4
-157
-117
Operating profit (EBIT)
Financial income
Financial costs
-79
-83
-157
-132
-318
-280
Profit before tax
Tax on profit
-21
-3
-41
-18
-47
-24
Profit for the period
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
-3
Profit for the period
Earnings per share
Basic earnings per share (EPS) of DKK 20, DKK
Diluted earnings per share (EPS-D) of DKK 20, DKK
DFDS Group Income statement
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 20
2021
2020
2021
2020
2020-21
2020
DKK m
Q2
Q2
H1
H1
LTM
Full year
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations
-30
-29
-59
Items that will not be reclassified subsequently to the Income statement
-30
-29
-59
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
-32
-173
-103
Value adjustment transferred to operating costs
-13
-21
-21
Value adjustment transferred to financial costs
-10
-6
Value adjustment transferred to non-current tangible assets
-65
-11
-31
-41
-27
-38
Tax on items that may be reclassified to the Income statement
-1
-1
-1
Foreign exchange adjustments, subsidiaries
-99
-37
Items that are or may be reclassified subsequently to the Income statement
-75
-29
-47
-129
-147
Total other comprehensive income after tax
-75
-29
-77
-158
-206
Total comprehensive income
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
-3
Total comprehensive income
DFDS Group – statement of Comprehensive income
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 21
DFDS Group - Balance sheet
Assets
2021
2020
2020
DKK m
H1
H1
Full year
Goodwill
Other non-current intangible assets
Software
Development projects in progress
Non-current intangible assets
Land and buildings
Terminals
Ferries and other ships
Equipment, etc.
Assets under construction and prepayments
Right-of-use assets
Non-current tangible assets
Investments in associates, joint ventures, and securities
Receivables
Prepaid costs
Deferred tax
Derivative financial instruments
Other non-current assets
Non-current assets
Inventories
Trade receivables
Receivables from associates and joint ventures
Other receivables
Prepaid costs
Derivative financial instruments
Cash
Current assets
Assets classified as held for sale
Total current assets
Assets
Equity and liabilities
2021
2020
2020
DKK m
H1
H1
Full year
Share capital
Reserves
-301
-170
-273
Retained earnings
Proposed dividends
Equity attributable to equity holders of DFDS A/S
Non-controlling interests
Equity
Interest-bearing liabilities
Lease liabilities
Deferred tax
Pension and jubilee liabilities
Other provisions
Other payables
Derivative financial instruments
Non-current liabilities
Interest-bearing liabilities
Lease liabilities
Trade payables
Payables to associates and joint ventures
Other provisions
Corporation tax
Other payables
Derivative financial instruments
Prepayments
Current liabilities
Liabilities
Equity and liabilities
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 22
Reserves
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Proposed
dividends
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Equity at 1 January 2021
-394
-25
Comprehensive income for the period
Profit for the period
Other comprehensive income
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments for the period
Value adjustment transferred to operating costs
-21
-21
-21
Value adjustment transferred to financial costs
-6
-6
-6
Value adjustment transferred to non-current tangible assets
-31
-31
-31
Tax on items that will be reclassified to the Income statement
-1
-1
-1
Foreign exchange adjustments, subsidiaries
Items that are or may subsequently be reclassified to the Income statement
-54
-1
-28
-29
Total other comprehensive income after tax
-54
-1
-28
-29
Total comprehensive income
-54
Transactions with owners
Vested share-based payments
Purchase of treasury shares
-4
-71
-75
-75
Cash from sale of treasury shares related to exercise of share options
Transactions with owners
-23
-23
-23
Equity at 30 June 2021
-368
-25
DFDS Group - Statement of changes in equity 1 January - 30 June 2021
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 23
Reserves
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Proposed
dividends
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Equity at 1 January 2020
-357
-28
Comprehensive income for the period
Profit for the period
Other comprehensive income
Items that will not subsequently be reclassified to the income statement:
Remeasurement of defined benefit pension obligations
-30
-30
-30
Items that will not subsequently be reclassified to the Income statement
-30
-30
-30
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments for the period
Value adjustment transferred to operating costs
Value adjustment transferred to financial costs
Value adjustment transferred to non-current tangible assets
-41
-41
-41
Tax on items that will be reclassified to the Income statement
Foreign exchange adjustments, subsidiaries
-99
-99
-99
Items that are or may subsequently be reclassified to the Income statement
-99
-46
-47
Total other comprehensive income after tax
-99
-24
-77
-77
Total comprehensive income
-99
Transactions with owners
Cancellation of proposed dividend at year-end 2019*
-235
Vested share-based payments
Cash from sale of treasury shares related to exercise of share options
-2
Transactions with owners
-235
Equity at 30 June 2020
-456
-26
* Reference is made to separate announcement from 18 March 2020 where the Board of Directors, due to the current financial environment, has decided not to propose the payment of a dividend at the Annual General Meeting
DFDS Group - Statement of changes in equity 1 January - 30 June 2020
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 24
2021
2020
2021
2020
2020-21
2020
DKK m
Q2
Q2
H1
H1
LTM
Full year
Operating profit before depreciation (EBITDA) and special items
897
507
1,647
1,117
3,263
2,732
Cash flow effect from special items related to operating activities
-23
-4
-35
-61
-100
-125
Adjustments for non-cash operating items, etc.
Change in working capital
-72
-15
Payment of pension liabilities and other provisions
-9
-8
-16
-16
-31
-31
Cash flow from operating activities, gross
Interest received, etc.
Interest paid, etc.
-109
-75
-161
-129
-314
-276
Taxes paid
-6
-52
-56
Cash flow from operating activities, net
Investments in ships including dockings, rebuildings, and ships under construction (incl. settlement of forward exchange contracts) related thereto*
-113
-290
-408
-836
-994
-1,422
Sale of ferries
Investments in other non-current tangible assets
-41
-74
-85
-136
-144
-195
Sale of other non-current tangible assets
Investments in non-current intangible assets
-14
-19
-28
-36
-61
-70
Acquisition of enterprises, associates, joint ventures, and activities
-14
-14
Other investing cash flows
-166
-165
-146
Cash flow to/from investing activities, net
-164
-338
-511
-969
-1,159
-1,618
Cash flow before financing activities, net
-45
Proceed from bank loans and loans secured by mortgage in ships
Repayment and instalments of bank loans and loans secured by mortgage in ships
-333
-347
-398
-1,325
-864
-1,791
Payment of lease liabilities
-203
-153
-383
-318
-666
-602
Settlement of forward exchange contracts related to leases
Proceeds from sale of treasury shares
Acquisition of treasury shares
-75
-75
-75
Cash received from exercise of share options
Other financing cash flows
-60
-60
Cash flow to/from financing activities, net
-566
-400
-194
-663
-458
Net increase (decrease) in cash and cash equivalents
-240
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
-2
-2
Cash and cash equivalents at end of period **
* The Q2 2021 cash flow includes an amount of DKK 19m related to a net settlement of a vessel swap where DFDS buys a vessel of DKK 332m, sells a vessel of DKK 165m, and settles a loan receivable of DKK 149m.
** At 30 June 2021 DKK 167m (30 June 2020: DKK 147m) of the cash was deposited on restricted bank accounts.
DFDS Group – Statement of cash flows
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 25
Note 1 Accounting policies and significant estimates
Basis of reporting
This section provides an overview of the Groups principal accounting policies as well as new
and amended IFRS standards and interpretations.
Accounting policies
This interim report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’
as adopted by the EU and additional Danish disclosure requirements for interim reports of
listed companies. The interim report has been prepared using the same accounting policies,
judgements and estimates as for the annual report for 2020 except as described below.
Implementation of new or changed accounting standards and interpretations
DFDS has adopted all new, amended, or revised accounting standards and interpretations
(IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2021
none of which has had material impact on the Group’s Financial Statements.
Significant estimates
In the view of Management, the areas where accounting estimates and assessments are
significant remain the same as per DFDS’ latest annual report. However, considering Covid-
19 certain significant estimates have been revisited in Q2 2021 compared to year-end
2020, particularly related to passenger traffic which is still impacted by travel restrictions.
In the preparation of the Interim Report, Management undertakes several accounting
estimates and assessments and makes assumptions which provide the basis for recognition
and measurement of the assets, liabilities, revenues and expenses of the Group and the
Parent Company. These estimates, assessments and assumptions are based on historical
experience and other factors which Management considers reasonable under the
circumstances, but which by their nature are uncertain and unpredictable. The assumptions
may be incomplete or inaccurate, and unanticipated events or circumstances may occur, for
which reason the actual results may deviate from the applied estimates, assessments, and
assumptions.
Impairment considerations due to Covid-19
Impairment testing is undertaken once a year unless indications of impairment occur. The
consequences of Covid-19 are still considered such an indication and consequently, DFDS
has in Q2 2021 revisited its impairment calculations from year-end 2020.
The Covid-19 situation is still an impairment indicator, particularly for passengers traffic
and it is still reasonable to assume that the situation from a long-term perspective is
temporary. DFDS’ main assets have a long lifetime and the impairment tests at year-end
2020 showed significant headroom for all other CGU’s than the Oslo-Frederikshavn-
Copenhagen route. In Q2 2021 Management has revisited forecasts for all CGUs and
concludes that the assumptions applied at year-end 2020 remains valid.
Receivables
The practice for recognising expected credit losses etc. remains the same as at year-end
2020.
Other areas
DFDS has taken part in various government compensation schemes following Covid-19.
Wage compensation is reducing the staff costs in the Income statement and contributions
from voluntary salary reduction are deducted in wages, salaries, and remuneration.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 26
Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
H1 2021
External revenue
5,042
2,930
9
7,981
Intragroup revenue
512
51
264
827
Total revenue
5,554
2,980
273
8,807
Operating profit (EBITDA) before special items
1,407
227
14
1,647
Operating profit (EBIT) before special items
595
105
-27
672
Operating profit after special items (EBIT)
615
85
-26
674
Invested capital, average
20,490
1,473
523
22,486
DKK m
Ferry
Division*
Logistics
Division*
Non-
allocated
Total
H1 2020
External revenue
4,066
2,525
21
6,612
Intragroup revenue
371
17
273
660
Total revenue
4,436
2,541
295
7,272
Operating profit (EBITDA) before special items
917
190
10
1,117
Operating profit (EBIT) before special items
160
45
-24
181
Operating profit after special items (EBIT)
239
40
-57
222
Invested capital, average
20,197
1,712
746
22,656
* North Sea port logistics activities have been transferred from the Ferry Division to the Logistics Division per 1 Janu-
ary 2021. 2020 comparative figures have been restated accordingly.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 27
Note 3 Revenue
H1 2021
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
1,790
-
0
1,790
Baltic Sea
646
-
0
646
English Channel
1,203
-
0
1,203
Mediterranean
1,404
-
0
1,404
Continent
-
1,272
0
1,272
Nordic
-
877
0
877
UK/Ireland
-
780
0
780
Other
0
0
9
9
Total
5,042
2,930
9
7,981
Product and services
Seafreight and shipping logistics solutions
4,121
70
0
4,192
Transport solutions
10
2,829
0
2,839
Passenger seafare and on board sales
237
0
0
237
Terminal services
433
3
0
436
Charters
152
0
0
152
Agency and other revenue
89
27
9
125
Total
5,042
2,930
9
7,981
All material revenue is recognised when each separate obligation in the customer contract
is fulfilled following the “over-time principle”. Most transports carried out by the Ferry
Division are characterised by short delivery time (most sailings are less than 30 hours while
sailings to/from Turkey are up to 72 hours). Transports carried out by Logistics Division can
take delivery over a longer period, but the impact is insignificant.
On board sales is recognised according to the “a point in time” principle and amount to
DKK 104m (H1 2020: DKK 154m).
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 152m (H1 2020: DKK 167m).
H1 2020
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North sea*
1,714
-
0
1,714
Baltic sea
599
-
0
599
English Channel
849
-
0
849
Mediterranean
904
-
0
904
Continent*
-
1,102
0
1,102
Nordic*
-
754
0
754
UK/Ireland*
-
669
0
669
Other
0
0
21
21
Total
4,066
2,525
21
6,612
Product and services
Seafreight and shipping logistics solutions
3,153
0
0
3,153
Transport solutions*
2
2,402
0
2,404
Passenger seafare and on board sales
416
0
0
416
Terminal services*
244
58
0
303
Charters
167
0
0
167
Agency and other revenue*
84
64
21
169
Total
4,066
2,525
21
6,612
* North Sea port logistics activities have been transferred from the Ferry Division to the Logistics Division per 1 Janu-
ary 2021. 2020 comparative figures have been restated accordingly.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 28
Note 4 Special items
2021
2020
DKK m
H1
H1
Acquisition and integration planning costs relating to HSF Logistics Group
-20
0
Accounting gain on sale of Liverpool Seaways
-
110
Accounting gain on sale of Gothia Seaways
20
-
Accrual of the total estimated costs (estimated fair value) related to the DFDS
shares awarded to DFDS employees as a special one-off award in connection with
DFDS’ 150 years anniversary in December 2016. The costs accrue from December
2016 to February 2020
-
-2
Termination cost in connection with restructuring
-
-67
Reversal of accrued cost related to anniversary shares
2
0
Special items, net
2
42
Note 5 Acquisition of enterprises and sale of activities
2021
On 26 January 2021, DFDS entered into an agreement to acquire HSF Logistics Group for a
debt-free price of DKK 2.2bn (EUR 296m). Closing of the transaction is still subject to
regulatory approval assumed to be received in September 2021 compared to previously
July 2021.
2020
There has been no significant acquisitions nor disposals in 2020.
Note 6 Fair value measurement of financial instruments
The table discloses fair value and carrying amount of financial instruments measured at fair
value in the balance sheet. Furthermore, categorisation of the valuation method according
to the fair value hierarchy is stated.
Transfers between levels of the fair value hierarchy are considered to have occurred at the
date of the event or change in circumstances that caused the transfer.
There were no transfers between the levels in the fair value hierarchy in H1 2021.
Techniques for calculating fair values
Derivatives
DFDS' usage of derivatives includes interest rate swaps, bunker swaps, forward exchange
contracts and currency swaps. The fair values on interest rate swaps have been calculated
by discounting the expected future interest payments. The discount rate for each interest
payment is estimated on the basis of a swap interest curve, which is calculated based on a
wide spread of market interest rates. The fair value on forward exchange contracts are
based on interest curve calculations in DFDS' Treasury system. Calculations are based on a
spread of market interest rates in the various currencies. Calculation on bunker swaps are
based on quoted forward curve from various financial institutions.
H1 2021
H1 2020
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
121
121
347
347
Securities (Level 3)
10
10
10
10
Financial liabilities
Derivatives (Level 2)
109
109
201
201
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 29
Note 7 Supplementary financial information on
the Parent Company
As a result of DFDS A/S' issuance of corporate bonds on Oslo Stock Exchange there is a
requirement to provide certain supplementary financial information on the Parent Company.
The following financial information has been prepared using the same accounting policies as
for the Annual Report for 2020.
The Parent Company’s revenue increased by DKK 367m, equivalent to 10%. Operating profit
before depreciation and special items (EBITDA) increased to DKK 912m from DKK 773m,
equivalent to an increase of 18%.
Profit before tax increased from DKK 139m in H1 2020 to DKK 238m in H1 2021.
The Parent Company’s net interest-bearing debt decreased from DKK 4,355m at 30 June
2020 to DKK 4,134m at 30 June 2021.
2021
2020
2020-21
2020
DKK m
H1
H1
LTM
Full year
Income statement
Revenue
3,879
3,512
7,752
7,385
Operating profit before depreciation (EBITDA) and
special items
912
773
1,897
1,758
Operating profit (EBIT) before special items
61
-59
225
104
Special items, net
-20
-38
-154
-172
Operating profit (EBIT)
42
-97
71
-68
Financial items, net
196
236
163
203
Profit before tax
238
139
234
135
Profit for the period
242
139
244
140
Assets
Non-current intangible assets
409
387
400
Non-current tangible assets
5,588
5,228
5,458
Right-of-use assets
845
1,233
1,404
Investments in affiliated companies, associates and
joint ventures
6,767
6,624
6,760
Non-current receivables from affiliated companies
53
271
261
Other non-current assets
41
261
110
Non-current assets
13,702
14,004
14,393
Current receivables from affiliated companies
696
1,214
699
Receivables from associates and joint ventures
23
46
27
Cash
1,258
244
735
Other current assets
1,468
1,358
1,381
Current assets
3,445
2,862
2,842
Assets
17,147
16,866
17,236
Equity and liabilities
Equity
9,550
9,505
9,382
Non-current liabilities
3,091
3,046
3,093
Current liabilities to affiliated companies
2,020
2,073
2,139
Other current liabilities
2,486
2,242
2,622
Current liabilities
4,506
4,315
4,762
Equity and liabilities
17,147
16,866
17,236
Equity ratio, %
55.7%
56.4%
54.4%
Net interest-bearing debt
4,134
4,355
4,718
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 30
Definitions
Operating profit before depreciation (EBITDA)
Profit before depreciation and impairment on non-current assets
Operating profit (EBIT)
Profit after depreciation and impairment on non-current intangible and tangible assets
Operating margin
Operating profit (EBIT) before special items
Revenue
× 100
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
Net working capital (non-interest bearing current assets minus non-interest bearing current liabilities) plus non-current intangible and tangible
assets minus pension and jubilee liabilities and other provisions
Net Interest-bearing debt
Interest-bearing liabilities (excluding provision for pensions) minus interest-bearing assets minus cash and securities
LTM
Last twelve months
Return on invested capital (ROIC)
Net operating profit after taxes (NOPAT)
Average invested capital
× 100
Adjusted free cash flow (FCFF)
Cash flow from operating activities excluding net interest received and paid minus cash flow from net investments and payment of lease
liabilities and interest
Return on equity
Profit for the period excluding non-controlling interests
Average equity excluding non-controlling interests
× 100
Equity ratio
Equity at end of period
Total assets
× 100
Earnings per share (EPS)
Profit for the period excluding non-controlling interests
Weighted average number of ordinary shares in circulation
× 100
P/E ratio
Share price at the end of the period
Earnings per share (EPS)
× 100
Dividend per share
Dividend for the year
Number of shares at the end of the period
× 100
Market value
Number of shares, ex. treasury shares, end of period times share price end of period
No. of ships
Owned and chartered ships, including slot charter and vessel sharing agreements
Unit
Logistics Division transported units are defined as a trailer or container regardless of whether the unit carries a full load or part loads.
Logistics Division also reports revenue from activities not reporting units, e.g. warehousing activities, managed contracts, workshops, customs
clearance and other fees
Roundings may in general cause variances in sums and percentages in this report.
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 31
ESG definitions
Operated ships
Number of ships, owned and chartered, deployed in own route network with fuel consumption included in own CO2 reporting
Total number of days operated
Total number of deployment days for operated ships
CO2 emissions per GT nautical mile
Emissions measured as gCO2 per gross tonnage nautical mile for operated ships
Total marine fuel consumption
Total consumption of heavy fuel oil (HFO) and marine gas oil (MGO) for operated ships
Fuel consumption per nautical mile
Total consumption of heavy fuel oil (HFO) and marine gas oil (MGO) per nautical mile for operated ships
Fuel consumption per GT nautical mile
gCO2 per gross tonnage-nautical mile
Spills (>1 barrel)
Incidents of oil spills larger than one barrel into the sea from operated ships
Number of employees
Average fulltime equivalent number of employees
Total workforce gender ratio
Percentage of women in FTE workforce
Senior management gender ratio
Percentage of women of total number of senior management positions defined as EVPs and VPs
Manager gender ratio
Percentage of women of total number of management positions, excluding senior management, defined as positions with responsibility for at
least one other employee
Employee gender ratio
Percentage of women of number of employees, excluding senior management and managers
At sea
Percentage of women of number of employees at sea
On land
Percentage of women of number of employees on land
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 registered work-related accidents disabling a land-based employee work for more than 24 hours per one million exposure hours
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
Representation of women on Board of Directors
Percentage of women of the total number of members of the Board of Directors, excluding staff appointed members
Attendance at Board meetings, %
Percentage of total number of Board meetings attended
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q2 2021 Interim Report / p 32
CVR 14 19 47 11
www.dfds.com
17 August 2021
Company announcement no.: 26/2021
Contact
Torben Carlsen, CEO: +45 33 42 32 01
Karina Deacon, CFO, +45 33 42 33 42
Søren Brøndholt Nielsen, IR: +45 33 42 33 59
Nicole Seroff, Communications: +45 31 40 34 46
Disclaimer
The statements about the future in
this announcement contain risks and uncertainties
and actual developments may therefore diverge
significantly from the statements about the future.
About DFDS
DFDS provides ferry and transport services in and around
Europe, generating annual revenues of DKK 17bn.
To over 10,000 freight customers, we deliver high
performance and superior reliability through ferry & port
terminal services and transport & logistics solutions.
For more than five million passengers, we provide safe
overnight and short sea ferry services.
Our 8,000 employees are located on ferries, terminals and
in offices across 20 countries. DFDS was founded in 1866,
is headquartered in Copenhagen, and listed on NASDAQ
Copenhagen.