Q2 2023 interim report
OUTLOOK RAISED
• Q2 performance better than expected
• Result below Q2 2022 due to temporary boost of
Channel earnings in Q2 2022
• Logistics acquisitions performing well
• EBITDA outlook raised to DKK 4.8-5.2bn
(DKK 4.5-5.0bn) on 14 August 2023
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Q2 2023
• EBITDA decreased 5% to DKK 1.4bn
• Adjusted free cash flow DKK 601m
• NIBD reduced 4% from Q1 2023
• CO2 emissions 8% lower per GT
nautical mile
Outlook 2023
• EBITDA raised to DKK 4.8-5.2bn
• Revenue around same level as 2022
• Investments of DKK 1.6bn
“We have raised our outlook as we con-
tinued to deliver strong operational per-
formance in Q2, and despite headwind in
some regions, we achieved a result that
was better than expected.”
Torben Carlsen, CEO
Q2 revenue decreased 3.2% to DKK 6.9bn but increased
2.5% adjusted for bunker surcharges, driven by higher pas-
senger and logistics revenue. Freight ferry revenue was be-
low last year as lower volumes were partly offset by
higher rates.
Q2 EBITDA decreased 5% to DKK 1,404m. The freight ferry
EBITDA of DKK 754m was 20% lower than last year as Q2
2022 earnings were boosted by elevated Channel earnings
and exceptionally high levels of oil price spreads, that
have now normalised. Moreover, Q2 2023 volumes were
lower than last year. The Q2 passenger EBITDA increased
28% to DKK 350m as results were improved across the
route network. Logistics Division’s EBITDA increased 26%
to DKK 345m driven by acquisitions.
For the first half-year (H1), revenue increased 2% to
DKK 13.3bn compared to the same period last year and
H1 EBITDA increased 5% to DKK 2,413m. EBITDA was
DKK 5,090m for the last twelve months (LTM, 2022-23).
The Q2 adjusted free cash flow was DKK 601m and
DKK 1,455m for the last twelve months (LTM). Net inter-
est-bearing debt (NIBD) was reduced 4% from Q1 2023 on
the back of the positive cash flow.
Outlook 2023
The EBITDA outlook is raised to DKK 4.8-5.2bn (previously
DKK 4.5-5.0bn) following better than expected H1 finan-
cial performance. Revenue is overall still expected to re-
main at the same level as 2022. The outlook is detailed
on page 9.
Highlights Q2
KEY FIGURES
2023
2022
2022-23
2021-22
2022
DKK m
Q2
Q2
Change, %
LTM
LTM
Change, %
Full-year
Revenue
6,942
7,170
-3
27,148
23,102
18
26,873
Operating profit before depreciation (EBITDA)
1,404
1,474
-5
5,090
3,987
28
4,974
Operating profit before amortization (EBITA)
765
874
-13
2,658
1,841
44
2,603
Operating profit (EBIT)
718
841
-15
2,500
1,722
45
2,468
Profit before tax
560
760
-26
2,020
1,459
38
2,139
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Key figures
2023
2022
2023
2022
2022-23
2022
DKK m
Q2
Q2
H1
H1
LTM
Full-year
Income statement
Revenue
6,942
7,170
13,282
13,007
27,148
26,873
• Ferry Division
4,176
4,544
7,997
8,026
16,802
16,831
• Logistics Division
3,088
2,979
5,937
5,644
11,716
11,423
• Non-allocated items
177
153
354
315
664
624
• Eliminations
-500
-507
-1,006
-978
-2,033
-2,006
Operating profit before depreciation
(EBITDA)
1,404
1,474
2,411
2,295
5,090
4,974
• Ferry Division
1,103
1,218
1,830
1,816
3,999
3,984
• Logistics Division
345
274
643
491
1,219
1,066
• Non-allocated items
-44
-18
-62
-11
-127
-76
Operating profit before amortisation
(EBITA)
765
874
1,168
1,113
2,658
2,603
Operating profit (EBIT)
718
841
1,080
1,048
2,500
2,468
Financial items, net
-158
-81
-291
-140
-481
-329
Profit for the period
539
704
669
819
1,870
2,019
Capital
Total assets
-
-
35,423
33,457
-
34,084
Equity
-
-
13,245
12,168
-
13,135
Net interest-bearing debt
-
-
15,193
13,646
-
14,109
Invested capital, end of period
-
-
28,856
26,143
-
27,554
2023
2022
2023
2022
2022-23
2022
DKK m
Q2
Q2
H1
H1
LTM
Full-year
Cash flows
Cash flows from operating activities
1,049
1,485
2,089
2,202
4,368
4,480
Cash flows from investing activities
-253
-558
-1,777
-1,511
-3,256
-2,989
Free cash flow
796
927
312
691
1,112
1,491
Adjusted free cash flow
601
732
859
229
1,455
825
Key operating and return ratios
Average number of employees (FTE)
-
-
12,795
11,171
11,842
11,510
Revenue growth (reported), %
-3.2
67.2
2.1
60.0
1.0
47.0
EBITDA-margin, %
20.2
20.6
18.2
17.6
18.7
18.5
EBITA-margin, %
11.0
12.2
8.8
8.6
9.8
9.7
EBIT-margin, %
10.3
11.7
8.1
8.1
9.2
9.2
Return on invested capital (ROIC), %, LTM
-
-
8.4
6.3
8.4
8.7
ROIC before acquisition intangibles, %, LTM
-
-
11.4
8.5
11.4
11.7
Return on equity, %
-
-
-
-
14.8
16.4
Key capital and per share ratios
Financial leverage, times
-
-
2.9
3.3
2.9
2.8
Equity ratio, %
-
-
37.4
36.4
-
38.5
Earnings per share (EPS), DKK
9.53
12.23
11.77
14.17
32.75
35.09
Dividend paid per share, DKK
0
0
5.00
4.00
-
8.00
Number of shares, end of period, '000
-
-
58,632
58,632
-
58,632
Share price, DKK
-
-
248.4
214.6
-
256.4
Definitions on page 30.
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ESG key figures
2023
2022
2023
2022
2022-23
2022
Unit
Q2**
Q2*
H1**
H1*
LTM
Full-year*
Environmental data
Total distance sailed
Nautical miles
1,437,821
1,498,250
2,805,881
2,925,126
5,779,190
5,839,619
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet)
gCO2
12.0
12.6
12.2
12.9
12.2
12.5
CO2 emissions per GT nautical mile (Route network)
gCO2
12.1
13.1
12.4
13.4
12.6
13.0
Energy consumption
Total fuel consumption (Route network)
Tonnes
185,593
214,116
370,489
414,312
770,992
799,515
Oil spills
Spills (>1 barrel)
Number
0
0
0
0
0
0
Social data
Representation of women
Total workforce:
%
-
-
24
24
-
24
Non-officed based
%
-
-
13
13
-
12
Office based
%
-
-
44
43
-
43
Senior management
%
-
-
15
15
-
16
Managers
%
-
-
17
15
-
14
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mio. hours
1.9
4.8
3.4
4.6
4.0
4.5
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mio. hours
7.8
6.0
9.6
8.3
8.6
7.9
Fatalities
Colleagues
Accidents
0
0
0
0
1
1
Contractors
Accidents
0
0
1
0
1
0
Governance data
Representation of women in the Board (AGM elected members)
%
-
-
33
33
-
33
Board nationality - non-Danish (AGM elected members)
%
-
-
33
33
-
33
Independent directors (AGM elected members)
%
-
-
83
83
-
83
Attendance at Board meetings (All Board members)
%
100
100
100
98
100
99
Whistle-blower reporting
Cases
15
3
31
14
50
33
* 2022 ESG data excludes ICT Logistics Group (acquired in January 2022), primeRail for LTIF figures (acquired in May 2022) and Lucey Transport Logistics (acquired in September 2022).
** 2023 ESG data excludes McBurney Transport Group (acquired in February 2023).
Definitions on page 31
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Market overview
Freight volumes generally remained soft in Q2 as living
costs were increased by continued high inflation which
lowered demand for goods. Energy prices declined in the
quarter and contributed to some easing in European infla-
tion levels. Europe’s growth outlook for the rest of the
year stabilised during the quarter and the likelihood of a
further growth slowdown in the rest of the year de-
creased.
The lower demand continued to ease bottlenecks in Euro-
pean supply chains as haulage capacity remained in place.
Certain sectors still face some challenges from shortages
of industrial parts and raw materials as well as staff. The
automotive sector continues to fulfil demand backlogs.
The growth of Türkiye’s economy in Q2 2023 was stalled
by the election process and lower demand in Europe, in-
cluding Germany. Interest rates were raised post the elec-
tion as part of a renewed approach to reduce inflation. The
long-term growth outlook remains positive as nearshoring
of manufacturing is expected to underpin growth in the
country’s export sector.
The year-on-year recovery in ferry passenger volumes
continued in Q2 across northern Europe as Covid-19 travel
restrictions were still in place in some regions for parts of
Q2 2022.
The main changes in average exchange rates in Q2 2023
vs Q2 2022 were depreciation of TRY/DKK by 26%,
NOK/DKK by 14%, and SEK/DKK by 8%.
Major events in Q2
No major events to report.
Major events after Q2
Dutch acquisition expands transport network
On 18 July 2023, DFDS entered into an agreement to ac-
quire 100% of the share capital of the Estron Group, a
Dutch provider of road transport and warehousing based
in Rotterdam, Netherlands. The price of the shares corre-
sponds to a stand-alone enterprise value/EBITDA-multiple
of around 6x excluding synergies.
Estron Group transports dry goods in trailers by road and
ferry between mainly the UK and Germany, Benelux, and
Poland. Both full- and part-load transports are provided
based on a leased fleet of 300 trailers. Haulage is subcon-
tracted. Warehousing, cross-docking, and logistics services
are provided from a 58,000m2 leased warehouse located
in the Port of Rotterdam. The company has 130 employ-
ees and the annual revenue in 2022 was EUR 50m.
Estron Group expands DFDS’ transport network by adding
road transport capacity to the existing full-load operation
to and from the UK that combines road and ferry
transport. In addition, Estron Group’s part-load and ware-
housing operations complements the existing similar oper-
ation based in Wijchen, Netherlands. The acquisition is ex-
pected to generate both commercial and operational syn-
ergies.
Closing is expected in August 2023. The transaction is not
subject to regulatory approval.
Turkish competition clearance obtained for possible
transaction
On 28 July 2023, DFDS obtained competition clearance
for a possible acquisition of Ekol Logistics’ 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 dialogue be-
tween DFDS and Ekol Logistics, a major Turkish transport
and logistics company, initiated to explore a possible ac-
quisition of Ekol Logistics’ international road haulage ac-
tivities. Such a combination of ferry and logistics activities
in the Mediterranean network would mirror DFDS’ proven
northern European business model.
As part of the review process, DFDS has undertaken com-
mitments in relation to the continued access for all logis-
tics operators to DFDS’ ferry routes to/from Türkiye.
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The strategic dialogue, including a due diligence process,
continues with a view to finalising the transaction terms
subject to Board approval.
ESG actions and plans
Environment
Q2 marked the launch of a DFDS Decarbonised Solutions
platform that allows customers to purchase Scope 3 CO2
reduction certificates linked to DFDS’ transport network.
The certificates document emission reductions from the
use of biofuel and electricity in both ferry and land
transport. During the quarter, the platform was initially in-
troduced to a select group of customers. The platform will
be rolled out more widely during the rest of the year.
Continued improvements in the quarter across both the
Ferry Division and the Logistics Division ensured that
short-term emission reductions targeted towards 2030
are on track. Ferry improvements were driven by various
incremental vessel upgrades and focus on schedule opti-
misation.
Ferry emissions were reduced in Q2 compared to Q2 2022
as CO2 emissions per GT nautical mile were 8% lower.
Logistics decarbonisation initiatives were focused on fur-
ther deployment of electric trucks, installation of charging
stations, and continued development of a more robust
data foundation for the green transition. 45 electric trucks
were deployed by the end of Q2 2023.
More information on emission reductions is available in
the Division sections.
Social
Diversity, Equity & Inclusion (DE&I)
The total female workforce representation of 24% in H1
2023 was maintained on level with H1 2022 as the work-
force increased by 1,624 FTEs in the period.
Female representation for managers increased to 17% in
H1 2023 from 15% in H1 2022. For senior management,
female representation was unchanged 15%.
Female representation for office staff increased one ppt to
44% in H1 2023 compared to the same period last year,
and representation for non-office staff of 13% was on
level with last year.
To drive DE&I, mandatory unconscious bias training has
been made available to all managers. This aims to create
greater awareness of biases and their impact on decision
making and interactions as well as emphasise manager ac-
countability. DE&I initiatives focused on talent, recruiting,
and pipeline continued in the quarter.
Safety
DFDS must be a safe place to work, where employees feel
secure and protected from work related illness and inju-
ries. Focus is currently on developing an effective safety
culture, increase awareness, and improve reporting and
knowledge sharing.
The lost-time injury frequency (LTIF) for sea-based opera-
tions decreased to 1.9 in Q2 2023 from 4.8 in Q2 2022.
LTIF for land-based operations increased to 7.8 in Q2 2023
from 6.0 in Q2 2022. See divisional sections for more de-
tails.
Governance
Starting in 2023, targets for several key ESG drivers - CO2
emissions, safety, and female representation - have been
added as mandatory components in the bonus program
comprising more than 400 managers and employees.
The number of reported whistleblower cases increased to
15 in Q2 2023 from 3 in Q2 2022. This development re-
flects higher awareness about the whistleblower function
driven by groupwide training programs about bullying and
harassment, unconscious bias training, and the DFDS Code
of Conduct.
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Financial performance
Revenue
The Group’s Q2 reported revenue was DKK 6,942m, a de-
crease of 3.2% compared to 2022 but an increase of 2.5%
adjusted for bunker surcharges.
The Ferry Division’s Q2 revenue decreased 8.1% to
DKK 4,176m but increased 1.5% adjusted for bunker sur-
charges driven by 14.4% higher passenger revenue. Freight
ferry revenue, adjusted, was 2.2% below last year as
lower volumes were partly offset by higher rates..
The Logistics Division’s Q2 revenue increased 3.7% to
DKK 3,088m but decreased 10.7% adjusted for the acqui-
sitions of Lucey Transport Logistics, McBurney Transport
Group, and D. R. MacLeod.
The Group’s H1 revenue was DKK 13,282m, an increase of
2.1% compared to H1 2022.
EBITDA
The Group’s Q2 EBITDA decreased 5% or DKK 69m to
DKK 1,404m following lower freight ferry earnings that
offset higher passenger and logistics earnings.
Ferry Division’s Q2 EBITDA decreased 9% or DKK 114m to
DKK 1,103m. The EBITDA for freight ferry activities de-
creased 20% to DKK 754m as Channel earnings in 2022
were elevated by additional volumes as a competitor sus-
pended sailings for most of Q2 2022. In addition, excep-
tionally high levels of oil price spreads temporarily low-
ered the net bunker cost in Q2 2022. Oil price spread lev-
els normalised during Q1 2023. Freight earnings were in
Q2 2023 moreover reduced by lower volumes in most net-
work regions. The EBITDA for passenger activities across
the network increased 28% to DKK 350m driven mainly
by higher volumes.
Logistics Division’s Q2 EBITDA increased 26% or DKK 70m
to DKK 345m following a positive impact from acquisi-
tions. EBITDA was 3% below last year adjusted for acqui-
sitions primarily due to decreasing volumes and rate lev-
els through the quarter.
The Group’s H1 EBITDA increased 5% to DKK 2,413m
while the EBITDA for the last twelve months was
DKK 5,090m.
EBITA and EBIT
Depreciation in Q2 of DKK 636m was 6% or DKK 35m
higher than last year driven mainly by the addition of
three acquired logistics companies.
The Group’s Q2 EBITA decreased 13% or DKK 110m to
DKK 765m. Amortisation in Q2 increased 41% to DKK 47m
following addition of three acquired logistics companies.
H1 EBITA increased 5% to DKK 1,169m.
The Group’s Q2 EBIT decreased 15% or DKK 123m to
DKK 718m and for H1 EBIT increased 3% to DKK 1,080m.
Financial items
Total net financial items in Q2 was a cost of DKK 158m,
an increase of 95% or DKK 77m compared to Q2 2022.
The net interest cost increased DKK 83m as interest-bear-
ing debt increased 3% compared to last year and the aver-
age borrowing rate doubled. Lease liabilities increased
23% compared to last year and the lease interest rate
also increased considerably.
Total net financial items in H1 was a cost of DKK 291m,
an increase of 108% or DKK 151m compared to H1 2022.
Profit before and after tax
The Q2 profit before tax decreased 26% or DKK 200m to
DKK 560m. The tax cost was DKK 21m and the profit for
the period was DKK 539m, a decrease of 24% compared
to 2022.
Revenue
DKK m
Q2 2023
Q2 2022
Change, %
Change
Ferry Division
4,176
4,544
-8.1
-368
Logistics Division
3,088
2,979
3.7
109
Non-allocated items
177
153
15.7
24
Eliminations
-500
-507
1.3
7
DFDS Group
6,942
7,170
-3.2
-228
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The H1 profit before tax decreased 13% to DKK 789m and
the H1 profit for the period was DKK 669m.
Earnings per share
Q2 earnings per share (EPS) decreased 22% to DKK 9.53
from DKK 12.23 in Q2 2022, and for H1 EPS decreased
17% to DKK 11.77.
Cash flow and investments
The Q2 cash flow from operating activities decreased 29%
to DKK 1,049m compared to Q2 2022 following a lower
operating result, a negative cash flow from working capi-
tal due to mainly lower payables related to oil prices, and
higher net finance payments. Net investments in Q2 to-
talled a negative cash flow of DKK 253m resulting in a
positive free cash flow of DKK 796m. This included a cash
flow of DKK -33m related to acquisitions.
The Q2 cash flow from financing activities was negative
by DKK 748m, including a net loan outflow of DKK 520m
and payment of lease liabilities of DKK 231m. The net in-
crease in cash was DKK 48m and at the end of Q2 2023
cash amounted to DKK 1,092m.
The Q2 adjusted free cash flow (FCFE) was DKK 601m
compared to DKK 732m in Q2 2022. The LTM Q2 adjusted
free cash flow (FCFE) was DKK 1,455m compared to
DKK 825m for full-year 2022.
The H1 cash flow from operating activities was
DKK 2,089m and the free cash flow was DKK 312m. Net
investments in H1 was an outflow of DKK 1,777m, includ-
Operating profit before depreciation (EBITDA)
DKK m
Q2 2023
Q2 2022
Change, %
Change
Ferry Division
1,103
1,218
-9.4
-114
Logistics Division
345
274
25.6
70
Non-allocated items
-44
-18
n.a.
-25
DFDS Group
1,404
1,474
-4.7
-69
EBITDA-margin, %
20.2
20.6
n.a.
-0.3
EBITA and EBIT
DKK m
Q2 2023
Q2 2022
Change, %
Change
EBITDA
1,404
1,474
-4.7
-69
Associates and joint ventures
-5
-2
n.a.
-4
Profit/loss on disposals
2
4
-44.2
-2
Depreciation and impairment
-636
-601
-5.8
-35
EBITA
765
874
-12.5
-110
Amortisation
-47
-33
-41.4
-14
EBIT
718
841
-14.7
-123
Financial items
DKK m
Q2 2023
Q2 2022
Change, %
Change
Interests, net
-164
-81
-103.1
-83
Foreign exchange gains/losses, net
14
7
95.3
7
Other items, net
-8
-7
-4.9
0
Total finance, net
-158
-81
-94.9
-77
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA
2021 2022 2023
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Q2 2023 interim report / p 9
ing acquisitions of DKK 982m. The cash flow from financ-
ing activities was a net outflow of DKK 408m bringing the
net cash flow for H1 to an outflow of DKK 96m.
The H1 adjusted free cash flow (FCFE) was DKK 859m
compared to DKK 229m in H1 2022.
Invested capital and ROIC
Invested capital increased 10% to DKK 28.9bn at the end
of Q2 2023 compared to Q2 2022. The majority of the in-
crease was due to logistics acquisitions and chartering of
ferries, including contract extensions.
The return on invested capital, ROIC, before acquisition in-
tangibles was 11.4% up from 8.5% in Q2 2022, and ROIC
increased to 8.4% from 6.3% in Q2 2022.
Capital structure
At the end of Q2 2023 net-interest-bearing debt (NIBD)
was reduced 4% to DKK 15.2bn from the end of Q1 2023.
NIBD was 8% above the end of 2022 due to mainly the ac-
quisition of McBurney Transport Group completed in
Q1 2023.
Financial leverage, as measured by the ratio of NIBD to
EBITDA for the last twelve months (LTM), was 2.9 at the
end of Q2 2023 compared to 2.8 at year-end 2022.
Equity
Equity amounted to DKK 13,245m at the end of Q2 2023,
including non-controlling interests of DKK 118m, an in-
crease of 1% compared to the end of 2022. Total compre-
hensive income for H1 2023 was DKK 676m while trans-
actions with owners was DKK -566m, including a dividend
of DKK 281m and a share buyback of DKK 300m.
The equity ratio was 37% at the end of Q2 2023 com-
pared to 39% at year-end 2022.
Outlook 2023
The outlook for 2023 builds on multiple assumptions that
may change significantly as the year progresses.
Key freight outlook assumptions for 2023
Freight ferry volumes in northern Europe are overall in H2
expected to be slightly below or around last year’s level
as market conditions become more comparable, particu-
larly in the Channel and Baltic Sea regions. Mediterranean
freight volumes are expected to be flat in the second half-
year.
Activity levels for land transport and logistics solutions
are expected to be below or around last year’s levels.
Key passenger outlook assumptions for 2023
Passenger volumes are expected to increase less in H2
than in H1 as travel restrictions were mostly removed by
the end of Q2 2022. Passenger earnings are expected to
overall increase in 2023.
Revenue outlook
The Group’s revenue is overall still expected to remain at
the same level as 2022 as higher passenger and logistics
revenue is offset by lower revenue from bunker sur-
charges.
Outlook 2023
DKK m
New outlook 2023
Previous outlook 2023
2022
Revenue growth
On level
On level
26,873
EBITDA
4,800-5,200
4,500-5,000
4,955
Per division:
Ferry Division
3,650-3,900
3,350-3,650
3,966
Logistics Division
1,250-1,400
1,200-1,400
1,066
Non-allocated items
-100
-50
-76
Investments
-2,800
-2,800
-2,989
Types:
Operating
-1,600
-1,600
-1,838
Ferries: sale & purchase and new-buildings
0
0
-871
Acquisitions
-1,200
-1,200
-280
2023
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Q2 2023 interim report / p 10
Earnings outlook
Based on H1 financial performance above expectations
and the above assumptions, the Group’s EBITDA is ex-
pected to be within a range of DKK 4.8-5.2bn compared to
previously a range of DKK 4.5-5.0bn (2022: DKK 5.0bn).
See outlook table for divisional split.
Investments
Operating investments, i.e. excluding acquisitions and
other transactions, are still expected to amount to around
DKK 1.6bn in 2023:
• No purchases of new or second-hand ferries are
expected
• Dockings and ferry upgrades, including energy
efficiency projects: DKK 800m
• Port terminals and other equipment: DKK 400m
• Cargo carrying equipment and warehouses, mainly re-
lated to Logistics Division: DKK 300m
• Other investments, including digital: DKK 100m.
The purchase price of McBurney Transport Group was
DKK 1.2bn.
Various risks and uncertainties pertain to the outlook
The most important risks and uncertainties are possible ma-
jor 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 eco-
nomic activity and trade in primarily Europe, especially
northern Europe, and in particular the UK, as well as adja-
cent regions, particularly Türkiye.
Demand can also be impacted by competitor actions, sup-
ply 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 effect 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 and ex-
change rates, can furthermore impact earnings.
Future financial results may therefore differ significantly
from outlook expectations.
2023
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Q2 2023 interim report / p 11
Passenger spending increased
Passenger earnings continued to grow in Q2 helped by higher
average spending per passenger. Awareness of the benefits
of duty-free sales on UK routes is growing. Duty-free sales
are available on board and from border shops in the Calais
and Dunkirk ports.
2023
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Q2 2023 interim report / p 12
• North Sea and Mediterranean
networks stable
• Baltic Sea impacted by war
in Ukraine
• Channel boosted in 2022 by
competitor’s suspension of sailings
• Passenger recovery continued
• 8% lower CO2 emissions per GT
nautical mile
Q2 volumes and activity changes
Total Q2 freight volumes decreased 15.0% compared to
Q2 2022 driven by significant decreases in the Baltic Sea
and Channel route networks. Baltic Sea volumes were
19.5% lower following a negative impact from the war in
Ukraine as the war’s impact on volumes did not fully
materialise until after the summer of 2022.
Channel volumes were down 25.6% as additional volumes
were transported in 2022 due to a competitor’s
suspension of most sailings in Q2 2022. The total Dover
Strait market contracted 1.4% in the quarter, including a
2.3% increase in June.
Ferry Division
Ferry Division
2023
2023
2023
2022
2022
2022-23
2022
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full-year
Revenue
3,820
4,176
7,997
8,026
3,482
4,544
4,753
4,052
16,802
16,831
Freight
3,312
3,270
6,581
6,923
3,172
3,752
3,503
3,423
13,507
13,849
Passenger
508
907
1,415
1,103
310
793
1,250
629
3,294
2,982
Operating costs
-2,248
-2,188
-4,436
-4,650
-2,130
-2,520
-2,541
-2,349
-9,327
-9,541
Ferry operations
-527
-495
-1,022
-854
-457
-397
-505
-528
-2,054
-1,886
Bunker
-752
-713
-1,465
-1,952
-817
-1,135
-1,135
-942
-3,542
-4,030
Port terminal operations
-793
-796
-1,589
-1,536
-722
-814
-765
-690
-3,044
-2,991
Transport and warehouse solutions
-176
-184
-360
-308
-134
-174
-137
-190
-686
-634
Employee costs
-630
-639
-1,269
-1,145
-544
-601
-609
-609
-2,487
-2,363
Sales, general and administration
-216
-246
-462
-415
-209
-206
-293
-235
-990
-943
EBITDA
727
1,103
1,830
1,816
598
1,218
1,310
859
3,999
3,984
Freight
717
754
1,471
1,633
689
944
722
728
2,922
3,083
Passenger
9
350
359
183
-91
274
587
131
1,077
901
Other income/costs, net
-4
-8
-12
-3
-2
-2
-5
-3
-20
-12
Depreciation and impairment
-430
-445
-875
-892
-435
-456
-442
-445
-1,762
-1,778
EBITA
293
651
943
921
161
760
863
411
2,217
2,194
Amortisation
-9
-9
-19
-19
-10
-10
-10
-9
-38
-38
EBIT
283
642
925
902
151
750
854
401
2,180
2,156
Invested capital, end of period
21,390
21,310
21,310
20,566
21,026
20,566
21,113
21,418
21,310
21,418
EBITDA-margin, %
19.0
26.4
22.9
22.6
17.2
26.8
27.6
21.2
23.8
23.7
EBITA-margin, %
7.7
15.6
11.8
11.5
4.6
16.7
18.2
10.1
13.2
13.0
EBIT-margin, %
7.4
15.4
11.6
11.2
4.3
16.5
18.0
9.9
13.0
12.8
Gross Capex (excl. acquisitions and leases)
438
150
588
1,163
836
328
621
247
1,455
2,031
ROIC before acquisition intangibles, %, LTM
-
-
12.7
8.5
-
-
-
-
12.7
12.6
ROIC, %, LTM
-
-
10.1
6.6
-
-
-
-
10.1
10.0
Average number of employees
-
-
6,432
5,913
-
-
-
-
6,172
6,138
Number of ships
-
-
65
66
-
-
-
-
-
64
Lane metres, '000
9,647
9,795
19,443
22,140
10,617
11,523
9,915
9,692
39,049
41,746
North Sea *
3,508
3,600
7,108
7,325
3,625
3,701
3,465
3,421
13,995
14,212
Mediterranean
1,345
1,375
2,720
2,789
1,363
1,426
1,329
1,448
5,497
5,566
Channel
3,993
4,026
8,019
10,040
4,629
5,410
4,220
3,904
16,143
18,164
Baltic Sea
802
794
1,596
1,986
999
986
900
918
3,414
3,804
Capacity utilisation freight, %
59
56
57
67
66
68
56
57
58
61
Number of cars, '000
152
301
453
409
100
309
508
208
1,168
1,124
Passengers, '000
619
1,205
1,825
1,268
283
984
1,704
801
4,329
3,772
* Includes volumes for the routes Oslo-Frederikshavn-Copenhagen and Amsterdam-Newcastle.
Definitions on page 30.
2023
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Q2 2023 interim report / p 13
Volumes in the North Sea network were 2.2% below 2022
due to mainly a temporary reduction in fruit/vegetable
exports to the UK from the Continent while automotive
volumes remained robust. Mediterranean volumes were
2.0% below 2022, adjusted for route changes, as activity
levels were lowered by the election process, lower
demand from Europe, especially Germany, and congestion
in the Mersin port.
Total Q2 passenger volumes increased 24% to 1.2m com-
pared to 2022 as volumes continued recover from the
Covid-19 travel restrictions that were still in place in
some markets in Q2 2022. The Q2 2023 volumes were at
index 87 compared to Q2 2019. Volumes on the Baltic Sea
as well as on the Norway-Denmark and Netherlands-UK
routes were above 2019. Channel volumes were compared
to 2019 at index 84 which was above the index for the to-
tal Dover Strait market.
Financial performance
Q2 revenue decreased 8.1% to DKK 4,176m compared to
2022 but increased 1.5% adjusted for bunker surcharges.
Passenger revenue increased 14.4% driven by the growth
in passenger volumes. Freight ferry revenue, adjusted, was
2.2% below 2022 as higher rates partly offset the revenue
impact of the volume decrease.
EBITDA decreased 9% or DKK 114m to DKK 1,103m as
lower freight earnings offset higher passenger earnings.
The passenger EBITDA increased DKK 76m to DKK 350m
while the freight ferry EBITDA decreased 20% to
DKK 754m as earnings in 2022 were elevated by the
suspension of sailings by a competitor. In addition, excep-
tionally high levels of oil price spreads temporarily low-
ered the net bunker cost in Q2 2022. Oil price spread lev-
els started to normalise during Q1 2023. Freight earnings
were in Q2 2023 moreover reduced by 7.2% lower vol-
umes, excluding Channel volumes.
EBITA decreased 14% or DKK 109m to DKK 651m.
The invested capital at the end of Q2 2023 increased 4%
to DKK 21.3bn compared to Q2 2022. The invested capital
was DKK 17.3bn excluding acquisition intangibles.
The return on invested capital, ROIC, before acquisition in-
tangibles was 12.7% up from 8.5% in Q2 2022, and ROIC
increased to 10.1% from 6.6% in Q2 2022.
Continued improvement of CO2 efficiency
The improvement of fuel efficiency continued in Q2 2023.
CO2 emissions per GT nautical mile decreased across the
entire route network, including both owned and chartered
vessels. Own fleet emissions were reduced 4.8% to 12.0
gCO2 per GT NM from 12.6 gCO2 per GT NM in Q2 2022.
Emissions from the entire route network decreased 7.8%
to 12.1 gCO2 per GT NM from 13.1 gCO2 per GT NM in Q2
2022.
Decarbonisation activities
Short-term emission reductions were achieved by incre-
mental fleet upgrades, including coating hulls with sili-
cone-based antifouling paints and hull modifications.
The schedule optimisation program also continued in Q2
to reduce sailing speed and thereby fuel consumption and
CO2 emissions. Combinations of lower sailing speed and
more time spent at sea can reduce emissions with up to
10% with only limited impacts on schedules and customer
lead times.
The long-term target of net-zero emissions will be
achieved by development and deployment of green ves-
sels. A first milestone is to deploy a green freight ferry in
the route network by 2025. The first green vessel is ex-
pected to be a retrofit project and the technical and com-
mercial conditions were further advanced in the quarter.
Ferry Division
2023
2023
2022
2022
2022-23
2022
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full-year
Representation of women, Sea, %
19
20
20
19
18
19
20
19
-
19
Representation of women, Land, %
30
31
31
30
29
30
30
30
-
30
Lost-time injury frequency (LTIF), Sea*
4.3
1.9
3.4
4.6
3.8
4.8
5.2
3.4
4.0
4.5
Lost-time injury frequency (LTIF), Land*
14.9
14.1
14.5
10.8
14.2
7.7
13.6
8.1
12.9
11.1
* 2022 ESG data excludes primeRail for LTIF figures (acquired in May 2022)
2023
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Q2 2023 interim report / p 14
Social performance
Female representation increased for both land-based and
sea-based staff. The land-based operation increased its fe-
male representation by one ppt from 30% in Q2 2022 to
31% in Q2 2023. Representation for sea-based employees
also increased one ppt to 20% in Q2 2023 from 19% in Q2
2023.
The sea-based LTIF was reduced to 1.9 in Q2 2023, the
lowest level in the last three years, from 4.8 in Q2 2022.
The land-based LTIF increased to 14.1 in Q2 2023 from 7.7
in Q2 2022. Most incidents were rooted in unsafe behav-
iour and initiatives to improve safety performance include
safety awareness campaigns, promotion of a strong safety
culture, and performance review meetings with local and
divisional management. Focus on locations with the high-
est levels of LTIF continued in the quarter. Implementation
of a new health & safety system for port terminals will
commence in the second half-year.
2023
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Q2 2023 interim report / p 15
• Q2 EBITDA maintained close to
2022 despite market decline
(excluding acquisitions)
• Cost base adjusted to market
changes
• Slowdown in UK-Scandinavia/
Continent trade
• Cold chain meat exports decreased
Q2 overview and activity changes
International full load volumes to and from the UK de-
creased in the quarter as did transports of construction
materials. Volumes between Scandinavia and the Conti-
nent continued to be above last year. Cold chain export
meat volumes from Denmark and the Netherlands de-
creased while UK domestic seafood volumes were above
last year. The overall volume slowdown in the general
freight market contributed to a further improvement of
the supply/demand balance in the haulage market as well
as increased price pressure.
Activity levels for contract logistics solutions, including
warehousing, remained firm and utilisation in the new
warehousing facilities in Sweden, the Netherlands, and the
UK continued to develop in line with expectations.
Financial performance
Q2 revenue increased 3.7% to DKK 3,088m compared to
2022 and decreased 10.7% adjusted for acquisitions
driven by the lower activity levels for both dry and cold
chain activities and the closure of activities last year in
Norway post Q2 2022.
Gross profit increased 31% or DKK 277m to DKK 1,172m
and the gross profit margin improved to 34.6% from
30.0% in Q2 2022. The increase was driven mainly by a
positive impact from acquisitions and cost base adjust-
ments, including haulage capacity, in response to lower
market volumes in most regions.
Logistics Division
Logistics Division
2023
2023
2023
2022
2022
2022-23
2022
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full-year
Revenue
2,849
3,088
5,937
5,644
2,666
2,979
2,947
2,832
11,716
11,423
Dry Goods
1,562
1,586
3,147
3,037
1,418
1,618
1,553
1,569
6,269
6,158
Cold Chain
1,278
1,487
2,764
2,600
1,251
1,349
1,388
1,252
5,404
5,240
Operating costs
Transport and warehousing costs
-1,864
-1,917
-3,780
-3,934
-1,850
-2,084
-2,045
-1,925
-7,750
-7,904
Gross profit
985
1,172
2,157
1,710
816
894
902
907
3,966
3,520
Sales, general and administration
-169
-179
-349
-300
-158
-142
-116
-84
-548
-499
Employee costs
-517
-648
-1,165
-920
-442
-478
-490
-545
-2,200
-1,955
EBITDA
299
345
643
491
216
274
297
278
1,219
1,066
Other income/costs, net
4
5
9
-1
-5
4
3
10
22
12
Depreciation and impairment
-163
-180
-343
-267
-132
-135
-135
-149
-628
-551
EBITA
140
169
309
223
79
143
165
139
613
526
Amortisation
-18
-24
-42
-24
-12
-12
-13
-15
-70
-52
EBIT
122
145
267
198
68
131
152
123
542
474
Gross profit margin, %
34.6
37.9
36.3
30.3
30.6
30.0
30.6
32.0
33.9
30.8
EBITDA-margin, %
10.5
11.2
10.8
8.7
8.1
9.2
10.1
9.8
10.4
9.3
EBITA-margin, %
4.9
5.5
5.2
3.9
3.0
4.8
5.6
4.9
5.2
4.6
EBIT-margin, %
4.3
4.7
4.5
3.5
2.5
4.4
5.2
4.4
4.6
4.1
Invested capital, end of period
6,693
6,700
6,700
4,741
4,610
4,741
5,127
5,283
6,700
5,283
Gross Capex (excl. acquisitions and leases)
144
74
218
266
68
198
138
294
651
698
ROIC before acquisition intangibles, %, LTM
-
-
14.6
15.2
-
-
-
-
14.6
14.9
ROIC, %, LTM
-
-
7.5
7.8
-
-
-
-
7.5
7.7
Average number of employees
-
-
5,410
4,463
-
-
-
-
4,812
4,544
Definitions on page 30.
2023
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Q2 2023 interim report / p 16
EBITDA increased 26% or DKK 70m to DKK 345m and de-
creased 3% adjusted for acquisitions.
EBITA increased 18% or DKK 26m to DKK 169m and the
EBITA-margin improved to 5.5% from 4.8% in Q2 2022.
The invested capital increased 41% or DKK 2.0bn to DKK
6.7bn at the end Q2 2023. The majority of the increase
was due to three acquisitions. In addition, warehousing ca-
pacity was expanded in the Nordics. The invested capital
was DKK 3.9bn excluding acquisition intangibles.
The return on invested capital, ROIC, before acquisition in-
tangibles was 14.6% compared to 15.2% in Q2 2022, and
ROIC was 7.5% compared to 7.8% in Q2 2022.
Decarbonisation activities
The first carbon in-setting products were launched at the
end of Q2 towards customers enabling them to purchase
CO2 reductions directly on their own transports or indi-
rectly from other parts of DFDS’ transport network. The
launch was supported by data foundation improvements
for the green transition and launch of a customer-centric
CO2 data dashboard.
The deployment of more electric trucks in several coun-
tries continued in Q2. An additional 18 e-trucks were de-
ployed in Q2, bringing the total number of deployed e-
trucks to 45 of the 125 ordered. The deployment of each
truck requires alignment with customer needs due to the
lower reach of e-trucks and availability of charging infra-
structures.
Social performance
The share of female representation was unchanged 17%
compared to the same quarter last year.
The LTIF for Q2 2023 was on a level with last year and re-
duced from 10.7 in Q1 2023. Part of the improvement
from Q1 2023 was due to seasonal circumstances as
longer days with better light conditions improves the
safety of haulage activities. Focus in Q3 is on behavioural
incidents related to haulage where slips, trips, and fall in-
cidents are the main root causes. In the second half-year,
all larger sites will be onboarded to a new health & safety
system for logistics sites.
Logistics Division
2023
2023
2022
2022
2022-23
2022
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full-year
Representation of women, Land, %*
17
17
17
17
17
17
17
17
-
17
Lost-time injury frequency (LTIF), Land*
10.7
5.7
8.7
7.8
11.2
5.7
4.1
10.1
7.9
7.5
* 2022 ESG data excludes ICT Logistics Group (acquired in January 2022) and Lucey Transport Logistics (acquired in September 2022) and 2023 ESG data
excludes McBurney Transport Group (acquired in February 2023) and Lucey Transport Logistics for LTIF figures.
2023
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Q2 2023 interim report / p 17
Management statement
Executive Board Torben Carlsen , CEO . Ka rina Deaco n , CFO
Board of Directors Clau s V. Hemmi ngsen , Chai r , Klaus N yborg , Vice Chair ,
2023
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Q2 2023 interim report / p 18
DFDS Group - Income statement
2023
2022
2023
2022
2022-23
2022
DKK m
Note
Q2
Q2
H1
H1
LTM
Full-year
Revenue
3
Costs
Ferry and other ship operation and maintenance
-1,306
-1,698
-2,675
-3,103
-5,998
-6,426
Port terminal operations
-826
-840
-1,641
-1,578
-3,153
-3,090
Transport and warehouse solutions
-1,681
-1,734
-3,312
-3,286
-6,683
-6,657
Employee costs
-1,406
-1,184
-2,662
-2,259
-5,129
-4,726
Costs of sales, general and administration
-318
-239
-582
-486
-1,096
-1,000
Operating profit before depreciation (EBITDA)
Share of profit/loss of associates and joint ventures
-5
-2
-13
-6
-21
-14
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
-357
-380
-700
-742
-1,405
-1,447
Depreciation and impairment losses, other non-current assets
-280
-221
-541
-436
-1,029
-924
Operating profit before amortisation (EBITA)
Amortisation
-47
-33
-88
-65
-158
-135
Operating profit (EBIT)
Financial income
Financial costs
-186
-93
-341
-176
-573
-409
Profit before tax
Tax on profit
-21
-56
-120
-90
-150
-120
Profit for the period
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
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
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DFDS Group – Statement of Comprehensive income
2023
2022
2023
2022
2022-23
2022
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
-46
-46
Items that will not be reclassified subsequently to the Income statement
-46
-46
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
Value adjustment transferred to operating costs
-65
-95
-86
Value adjustment transferred to financial costs
-1
-5
-8
Value adjustment transferred to non-current tangible assets
Tax on items that may be reclassified to the Income statement
-12
-12
-19
-31
Foreign exchange adjustments, subsidiaries
-7
-71
-88
-89
-177
Items that are or may be reclassified subsequently to the Income statement
-14
-4
Total other comprehensive income after tax
-14
-4
-4
Total comprehensive income
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
Total comprehensive income
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Assets
DFDS Group - Balance sheet
Equity and liabilities
2023
2022
2022
DKK m
30 June
30 June
31 Dec.
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
Pension assets
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
2023
2022
2022
DKK m
30 June
30 June
31 Dec.
Share capital
Reserves
-298
-339
-284
Retained earnings
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
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
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DFDS Group - Statement of changes in equity 1 January - 30 June 2023
DKK m
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
-543
-28
Comprehensive income for the period
Profit for the period
Other comprehensive income
Total comprehensive income
Transactions with owners:
Dividend paid
-293
-293
-293
Dividend on treasury shares
Share-based payments
Share buyback
-21
-279
-300
-300
Transactions with owners
-21
-545
-566
-566
Equity at 30 June 2023
-543
-49
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DFDS Group - Statement of changes in equity 1 January - 30 June 2022
DKK m
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
-366
-5
-25
Comprehensive income for the period
Profit for the period
Other comprehensive income
-88
-12
Total comprehensive income
-88
Transactions with owners:
Addition related to acquisition, non-controlling interests
-1
Dividend paid
-229
-229
-229
Dividend paid, non-controlling interests
-3
-3
Share-based payments
Purchase of treasury shares
-2
-30
-32
-32
Transactions with owners
-2
-246
-248
-4
-252
Equity at 30 June 2022
-454
-28
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DFDS Group – Statement of cash flows
2023
2022
2023
2022
2022-23
2022
DKK m
Note
Q2
Q2
H1
H1
LTM
Full-year
Operating profit before depreciation (EBITDA)
Adjustments for non-cash operating items, etc.
Change in working capital
-124
-68
Payment of pension liabilities and other provisions
-11
-9
-19
-17
-98
-97
Interest received, etc.
Interest paid, etc.
-200
-95
-334
-172
-555
-388
Taxes paid
-53
-87
-64
-133
-109
Cash flow from operating activities
Investments in ferries including dockings, etc.
-117
-263
-509
-1,047
-1,209
-1,747
Sale of ferries
Investments in other non-current tangible assets
-110
-276
-300
-431
-896
-1,026
Sale of other non-current tangible assets
Investments in non-current intangible assets
-17
-18
-37
-32
-75
-70
Acquisition of enterprises, associates, joint ventures, and activities (incl. earn-out), net of cash acquired
4
-33
-21
-982
-56
-1,206
-280
Divestment of enterprises and associates
-2
-2
Other investing cash flows
-1
Cash flow from investing activities
-253
-558
-1,777
-1,511
-3,256
-2,989
Free cash flow
Proceed from bank loans and loans secured by mortgage in ferries
Repayment and instalments of bank loans and loans secured by mortgage in ferries
-536
-562
-1,795
-1,352
-3,075
-2,632
Proceed from issuance of corporate bonds
Repayment of corporate bonds incl. settlement of cross currency swap
-1,000
-1,000
Payment of lease liabilities
-231
-220
-441
-524
-880
-963
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares and share buyback
-300
-32
-300
-32
Other financing cash flows
-31
-2
-33
Dividends paid to non-controlling interests
-3
-3
-3
Dividends paid to equity holders of DFDS A/S
-281
-229
-511
-459
Cash flow from financing activities
-748
-280
-408
-64
-1,547
-1,203
Net cash flow
-96
-435
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
-1
-1
-1
-1
-2
Cash and cash equivalents at end of period *
* At 30 June 2023 DKK 0m (30 June 2022: DKK 175m) of the cash was deposited on restricted bank accounts.
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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 2022 except as described below.
Special Items
As from 2023 special items will not be presented separately in the income statement, refer-
ence is made to note 2.6 of the 2022 annual report. Comparative figures have been re-
stated.
Introducing EBITA as a new sub-total
Management has in 2023 introduced EBITA in the Income statement, which is defined as re-
sult before interest, tax and amortisation.
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 2023
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 sig-
nificant remain the same as per DFDS’ latest annual report. However, considering the war in
Ukraine and the current macro-economic environment certain significant estimates have
been revisited in H1 2023 compared to year-end 2022. The review did not give rise to a
change in estimates.
In the preparation of the Interim Report, Management undertakes several accounting esti-
mates 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 experi-
ence and other factors which Management considers reasonable under the circumstances,
but which by their nature are uncertain and unpredictable. The assumptions may be incom-
plete 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 the war in Ukraine and current macro environment
Impairment testing is undertaken at year-end unless indications of impairment occur during
the year. In H1 2023 Management has revisited forecasts for all cash generating units
(CGUs) and concludes that no impairments nor reversals of prior year impairments are nec-
essary.
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Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
H1 2023
External revenue
7,384
5,893
6
13,282
Intragroup revenue
613
44
348
1,006
Total revenue
7,997
5,937
354
14,288
Operating profit before depreciation (EBITDA)
1,830
643
-62
2,411
Operating profit before amortisation (EBITA)
943
309
-85
1,168
Operating profit (EBIT)
925
267
-111
1,080
Invested capital, end of period
21,310
6,700
846
28,856
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
H1 2022
External revenue
7,377
5,617
13
13,007
Intragroup revenue
649
28
302
978
Total revenue
8,026
5,644
315
13,985
Operating profit before depreciation (EBITDA)
1,816
491
-11
2,295
Operating profit before amortisation (EBITA)
921
223
-30
1,113
Operating profit (EBIT)
902
198
-52
1,048
Invested capital, end of period
20,566
4,741
837
26,143
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Note 3 Revenue
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 Türkiye are up to 72 hours). Transports carried out by Logistics Division can take de-
livery 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
696m (H1 2022: DKK 509m).
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 192m (H1 2022: DKK 189m).
H1 2023
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
2,842
-
0
2,842
Mediterranean
2,288
-
0
2,288
Baltic Sea
614
-
0
614
Continent
-
2,411
0
2,411
Nordic
-
1,961
0
1,961
UK/Ireland
1,640
1,520
0
3,160
Other
0
0
6
6
Total
7,384
5,893
6
13,282
Product and services
Seafreight and shipping logistics solutions
5,080
0
0
5,080
Transport solutions
344
5,658
0
6,002
Passenger seafare and on board sales
1,415
0
0
1,415
Terminal services
292
4
0
297
Charters
171
21
0
192
Agency and other revenue
82
209
6
297
Total
7,384
5,893
6
13,282
H1 2022
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
2,652
-
0
2,652
Mediterranean
2,230
-
0
2,230
Baltic Sea
713
-
0
713
Continent
-
2,212
0
2,212
Nordic
-
2,236
0
2,236
UK/Ireland
1,781
1,169
0
2,950
Other
0
0
13
13
Total
7,377
5,617
13
13,007
Product and services
Seafreight and shipping logistics solutions
5,239
17
0
5,256
Transport solutions
274
5,237
0
5,510
Passenger seafare and on board sales
1,103
0
0
1,103
Terminal services
497
3
0
500
Charters
171
17
0
189
Agency and other revenue
93
343
13
450
Total
7,377
5,617
13
13,007
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Note 4 Acquisition of enterprises and sale of activities
2023
McBurney Transport Group
On 28 February 2023, the acquisition of McBurney Transport Group based in Northern Ire-
land was completed and the DFDS Group obtained control as from this date. The acquisition
is included in the Logistics Division.
The company is focused on moving cold chain and dry goods in trailers by road and ferry be-
tween island of Ireland and the UK. The acquisition of McBurney Transport Group is aligned
with DFDS’ strategic focus on cold chain logistics. It overlaps with existing activities in the
region and offers opportunities to connect with other parts of DFDS’ pan-European transport
network.
DFDS paid DKK 1,178m for the acquired company. In addition an earn-out agreement was
entered into according to which seller is entitled to additional payment based on the McBur-
ney Transport Groups’ financial performance for the following 12 months period after the
acquisition. Trade receivables have been recognised at the acquisition date at a fair value of
DKK 236m equal to their face value.
The preliminary purchase price allocation shows the following:
Due to the acquisition date being 28 February 2023 the above purchase price allocation is
preliminary and will be subject to adjustments on several items in the opening balance.
In connection with the acquisition DFDS has measured identifiable intangible assets i.e., cus-
tomer relationships etc. which are recognised in the acquisition balance sheet at their fair
value. The preliminary fair value is DKK 354m at the acquisition date.
Following recognition of acquired identifiable assets and liabilities at their fair value, the
goodwill related to the acquisition is preliminarily measured at DKK 384m.
DKK m
Preliminary fair value at
acquisition date
Non-current intangible assets
354
Land and buildings
87
Equipment etc.
331
Inventories
4
Trade receivables including work in progress services
236
Other receivables
33
Cash at hand and in bank
229
Deferred tax liability
-119
Interest bearing debt
-155
Trade payables
-124
Other liabilities
-66
Net assets acquired
811
Goodwill
384
Total purchase price
1,195
Contingent consideration assumed
-17
Cash and bank balances acquired
-229
Cash flow impact from acquisition
949
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Note 4 Acquisition of enterprises and sale of activities (contin-
ued)
The goodwill represents primarily the value of the staff and know-how taken over and ex-
pected synergies from combining the acquired Group with the existing DFDS activities and
network. The goodwill is not deductible for tax purposes.
Other 2023 acquisitions
On 22 May 2023 it was announced that DFDS Group had acquired all activities from D.R.
Macleod headquartered in Scotland. DFDS Group obtained control as from this date and the
acquired activities is after the acquisition included in the Logistics Division. The purchase
price for the acquired activities amounts to DKK 26m.
On 18 July 2023 it was announced that DFDS Group had entered an agreement to acquire
all shares in Estron Group headquartered in Rotterdam, Netherlands. Closing of the transac-
tion is expected to be in August 2023.
2022
The purchase price allocation for Lucey Transport Logistics (acquired 30 September 2022)
and primeRail (acquired 10 May 2022) is still preliminary, but unchanged compared to 31
December 2022. The purchase price allocation for ICT Logistics (acquired 19 January 2022)
is finalised but unchanged compared to 31 December 2022. For further details of these ac-
quisitions, refer to the annual report for 2022.
Note 5 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 2023.
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 2023
H1 2022
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
342
342
237
237
Securities (Level 3)
2
2
2
2
Financial liabilities
Derivatives (Level 2)
77
77
106
106
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Note 6 Supplementary financial information on
the Parent Company
As a result of DFDS A/S' issuance of corporate bonds on the 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 2022. 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 2023. For further description reference is made to note 1 Accounting
policies.
The Parent Company’s revenue increased by DKK 23m, equivalent to 0.4% compared to H1
2022. Operating profit before depreciation (EBITDA) increased by DKK 11m equivalent to
1.0% compared to H1 2022.
Profit before tax decreased by DKK 326m compared to H1 2022.
The Parent Company’s net interest-bearing debt increased by DKK 946m equivalent to
13.3% compared to 31 December 2022.
2023
2022
2022-23
2022
DKK m
H1
H1
LTM
Full-year
Income statement
Revenue
5,423
5,400
11,643
11,621
Operating profit before depreciation (EBITDA)
1,112
1,102
2,669
2,658
Operating profit before amortisation (EBITA)
385
426
1,159
1,200
Operating profit (EBIT)
359
405
1,110
1,157
Financial items, net
-124
156
172
451
Profit before tax
235
561
1,282
1,608
Profit for the period
237
567
1,278
1,608
Assets
Non-current intangible assets
459
433
-
448
Non-current tangible assets
8,210
7,910
-
8,635
Investments in subsidiaries
10,462
8,509
-
9,289
Investments in associates, joint ventures and securities
2
2
-
2
Non-current receivables from subsidiaries
33
22
-
60
Other non-current assets
209
222
-
280
Non-current assets
19,374
17,098
-
18,714
Current receivables from subsidiaries
1,142
923
-
1,064
Receivables from associates and joint ventures
22
24
-
22
Cash
558
976
-
489
Other current assets
1,437
1,603
-
1,412
Current assets
3,158
3,526
-
2,988
Total assets
22,532
20,624
-
21,702
Equity and liabilities
Equity
10,332
9,778
-
10,649
Non-current liabilities
5,319
3,733
-
4,071
Current liabilities to subsidiaries
2,335
2,058
-
1,868
Other current liabilities
4,546
5,055
-
5,114
Current liabilities
6,881
7,113
-
6,982
Total equity and liabilities
22,532
20,624
-
21,702
Equity ratio, %
45.9
47.4
-
49.1
Net interest-bearing debt
8,077
6,237
-
7,131
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Definitions
Operating profit before depreciation (EBITDA)
Profit before interest, tax, depreciation, amortisation, and impairment on non-current assets
Operating profit before amortisation (EBITA)
Profit before interest, tax, and amortisation
Operating profit (EBIT)
Profit before interest and tax
Operating margin, %
Operating profit (EBIT)
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
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
Net Interest-bearing debt (NIBD)
Interest-bearing liabilities (excluding provision for pensions) minus interest-bearing assets minus cash and securities
LTM
Last twelve months
Acquisition intangibles
Intangible assets recognised in connection with acquiring enterprises and activities (Goodwill and Other non-current intangible assets)
Return on invested capital (ROIC), %
Net operating profit after taxes (NOPAT)
Average invested capital
× 100
ROIC before acquisition intangibles, %
Net operating profit after taxes (NOPAT) excluding amortisation on acquisition intangible assets
Average invested capital excluding acquisition intangible assets
× 100
Free cash flow
Cash flow from operating activities minus cash flow from investing activities
Adjusted free cash flow (FCFE)
Free cash flow excluding acquisitions/divestments minus payment of lease liabilities and currency contracts related to leases
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
Financial leverage, times
Net Interest-bearing debt (NIBD)
EBITDA LTM incl. pro forma EBITDA for acquired companies
Earnings per share (EPS)
Profit for the period excluding non-controlling interests
Weighted average number of ordinary shares in circulation
Dividend per share
Dividend for the year
Number of shares at the end of the period
Number of ships
Owned and chartered ships, including slot charter and vessel sharing agreements
Passenger
Comprise activities related to persons travelling with or without car and who is carried on a ro-pax or passenger cruise ferry across the DFDS route network.
Rounding’s may in general cause variances in sums and percentages in this report.
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ESG Definitions
Total distance sailed
Total distance sailed for vessels in commercial operation
CO2 emissions per GT nautical mile (Own fleet)
Emissions measured as gCO2 per gross tonnage nautical mile for vessels in commercial operation (Own fleet)
CO2 emissions per GT nautical mile (Route network)
Emissions measured as gCO2 per gross tonnage nautical mile for vessels in commercial 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)
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 responsibility for at least one other
employee (end of period)
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 (AGM
elected members)
Percentage of women of total number of members of the Board of Directors, excluding staff appointed members, elected at the Annual General Meeting
Board nationality – non-Danish (AGM elected mem-
bers)
Percentage of non-Danish members of total number of members of the Board of Directors 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 meetings attended (Not gender specific)
Whistle-blower reporting
Number of cases of whistle-blower reports
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CVR 14 19 47 11
www.dfds.com
15 August 2023
Company announcement no.: 28/2023
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
Christina Bruun Madsen, Media +45 51 71 42 88
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
We operate a transport network in and around Europe
with an annual revenue of DKK 27bn and 12,800
full-time employees.
We move goods in trailers by ferry, road, and rail, plus we
offer related logistics solutions.
We also move car and foot passengers on short sea and
overnight ferry routes.
DFDS was founded in 1866 and is headquartered and
listed in Copenhagen.