Q1 2021 Interim Report
2021 OFF TO
A GOOD START
• Fast recovery from Brexit transition
• Mediterranean continued its progress
• Passenger services remained restricted
• EBITDA increased 23% to DKK 750m
2021
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Q1 2021 Interim Report / p 2
Q1 2021
• Mediterranean’s EBITDA up
DKK 101m
• Freight total EBITDA up DKK 165m
• High activity on new Irish route
• Acquisition of HSF Logistics Group
Outlook 2021 (raised 23 April)
• EBITDA of DKK 3.2-3.6bn
• Revenue growth of 20-25%,
unchanged
“We came through Brexit better than ex-
pected thanks to our focus on customer
needs and thorough preparations. Next
on our agenda is a successful integra-
tion of HSF Logistics Group.”
Torben Carlsen, CEO
Freight revenue increased 5% to DKK 3.7bn in Q1 while
passenger revenue decreased 72% to DKK 0.1bn. Total
revenue decreased 1% to DKK 3.8bn.
Freight EBITDA before special items increased DKK 165m
or 25% to DKK 836m while the passenger EBITDA
decreased DKK 42m to DKK -93m. Total EBITDA increased
23% to DKK 750m. The improved result for freight ferry
and logistics activities was mainly driven by the
Mediterranean business unit and activities linked to the
Brexit transition.
Tight travel restrictions for passengers were in place
throughout Q1 and passenger volumes therefore remained
subdued in the quarter. Passenger services are provided in
three business units – Passenger, Channel and Baltic Sea.
Outlook 2021
The EBITDA outlook for 2021 was raised on 23 April 2021
following stronger than expected freight results for most
business units. Revenue is still expected to grow by
20-25% while the range for EBITDA before special items
was raised to DKK 3.2-3.6bn from previously
DKK 3.0-3.5bn (2020: DKK 2.7bn). Uncertainty remains
high and significant changes to outlook assumptions may
still occur in the rest of the year.
The outlook is detailed on page 8.
Highlights Q1
11 May 2021. Conference call today at 14.00am CET
Access code: 75366786# 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
Q1
Q1
Change, %
LTM
LTM
Change, %
FY
Revenue
3,768
3,813
-1.2
13,925
16,535
-15.8
13,971
EBITDA before special items
750
610
23.0
2,872
3,565
-19.4
2,732
EBIT before special items
278
133
109.4
1,003
1,650
-39.2
858
Profit before tax and special items
202
98
106.0
687
1,411
-51.3
583
Profit before tax
192
96
99.4
562
1,324
-57.6
466
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2021
2020
2020-21
2020
DKK m
Q1
Q1
LTM
Full year
Income statement
Revenue
3,768
3,813
13,925
13,971
• Ferry Division*
2,594
2,628
9,412
9,445
• Logistics Division*
1,426
1,394
5,333
5,301
• Non-allocated items
136
139
489
491
• Eliminations*
-389
-348
-1,309
-1,268
Operating profit before depreciation (EBITDA) and special items
750
610
2,872
2,732
• Ferry Division*
641
525
2,432
2,315
• Logistics Division*
101
95
468
462
• Non-allocated items
8
-10
-27
-45
Profit/loss on disposal of non-current assets, net
1
2
4
5
Operating profit (EBIT) before special items
278
133
1,003
858
Special items, net
-10
-2
-126
-117
Operating profit (EBIT)
268
131
878
741
Financial items, net
-77
-35
-316
-275
Profit before tax
192
96
562
466
Profit for the period
172
81
533
442
Profit for the period excluding non-controlling interest
168
78
523
433
Capital
Total assets
27,820
26,574
-
27,006
DFDS A/S' share of equity
10,775
10,279
-
10,511
Equity
10,868
10,362
-
10,600
Net interest-bearing debt
11,435
12,308
-
11,361
Invested capital, end of period
22,462
22,822
-
22,121
Invested capital, average
22,291
22,649
22,497
22,500
2021
2020
2020-21
2020
DKK m
Q1
Q1
LTM
Full year
Cash flows
Cash flows from operating activities, before financial items and after tax
493
433
2,832
2,772
Cash flows from investing activities
-347
-631
-1,334
-1,618
• Acquisition of enterprises and activities
0
-14
0
-14
• Other investments, net
-347
-616
-1,334
-1,603
Free cash flow
146
-197
1,498
1,155
Repayment of lease liabilities and lease interest
-196
-184
-691
-679
Adjusted free cash flow (FCFF)
-50
-381
806
475
Key operating and return ratios
Average number of employees
7,965
8,577
8,279
8,213
Number of ships
74
71
-
70
Fuel consumption per nautical mile (g/GT/Nm)
4.46
4.74
4.36
4.25
Revenue growth (reported), %
-1.2
-1.5
-0.3
-15.8
EBITDA-margin, %
19.9
16.0
20.6
19.6
Operating margin, %
7.4
3.5
7.2
6.1
Revenue/invested capital average, (times)
-
-
0.6
0.6
Return on invested capital (ROIC), %
-
-
3.6
3.0
ROIC before special items, %
-
-
4.2
3.5
Return on equity, %
-
-
5.0
4.2
Key capital and per share ratios
Equity ratio, %
39.1
39.0
-
39.3
Net-interest bearing debt/EBITDA, (times)
-
-
4.0
4.2
Earnings per share (EPS), DKK
2.91
1.36
9.12
7.56
Dividend paid per share, DKK
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
57,558
57,252
-
57,310
Share price, DKK
324.8
155.0
-
275.2
Market value
18,695
8,885
-
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 29.
Key figures
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Market overview
Trade volumes in the first two months of Q1 2021
between the EU and the UK were as expected below last
year. This reflected the extensive UK stock-building in Q4
2020 and implementation of the new rules and processes
of the trade agreement between the EU and the UK.
Implementation of the new agreement initially led to a
slowdown in trade which increased turnaround times for
transport equipment. This in turn led to a shortage of
equipment in the market. Freight volumes began to
recover from around March and turnaround times for
equipment has to a large extent now normalised. Some
market segments are still impacted by teething issues
related to the new rules and processes, particularly
smaller exporters and importers with part-load and
groupage consignments.
Brexit has also led to some rerouting of trade flows,
particularly between Ireland and continental Europe. It
remains to be seen if the changes are sustainable long-
term.
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.
Freight activity in regions not impacted by Brexit were
generally on level or above last year, including the Baltic
region. Freight flows were generally weakened by Covid-
19 in the last two weeks of March 2020 which impacts
comparisons to last year.
Trade between the EU and Turkey continued to grow in Q1
as the depreciation of the Turkish Lira, TRY, benefited
exports while import growth slowed during the quarter.
Economic activity was robust in the quarter as growth in
the EU and other regions continued to support industrial
production. The Turkish economy is expected to continue
to grow although domestic demand is likely to be
dampened by the currency depreciation and rising
inflation.
The European ferry travel market remained as expected
subdued in Q1 2021 due to the tight travel restrictions
that were in place throughout the quarter.
The main changes in average exchange rates in Q1 2021
vs Q1 2020 were a depreciation of TRY/DKK by 25% and
appreciation of SEK/DKK by 5%.
Major events in Q1
New freight ferry route opened between Ireland and
France/Continental Europe
To facilitate trade between Ireland and continental
Europe, a new freight ferry route was opened on 2 January
2021 between Rosslare in Ireland and Dunkirk in Northern
France. The route bypasses the UK to offer trucks and
drivers direct and paperless transport between EU
countries.
Acquisition of HSF Logistics Group, leading provider of
cold chain logistics
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 operates
temperature-controlled supply chains.
DFDS has agreed to acquire the HSF Logistics Group for a
debt-free price of DKK 2.2bn (EUR 296m). The HSF
Logistics Group has revenue of DKK 2.8bn and an 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.
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The acquisition of HSF Logistics Group is aligned with
DFDS’ Win23 strategy of growing solutions to selected
industries, including cold chain logistics customers.
Closing of the transaction is expected to take place
around 1 July 2021 subject to regulatory approval.
More information on the transaction is available from this
link.
Oslo-Frederikshavn-Copenhagen route suspended
In November 2020, one of the two ferries deployed on
Oslo-Frederikshavn-Copenhagen was laid up and in
January 2021 the second ferry was laid up due to the
continued tight travel restrictions. The route is currently
expected to reopen on 7 June 2021.
Sixth and final mega freight ferry delivered
The final freight ferry newbuilding in a series of six
newbuildings was delivered early February and deployed
later in the month between Sweden and Belgium.
New route opened between Turkey and Spain
A new freight ferry route was opened in February 2021
between Izmir in Turkey and Tarragona in Spain. A high
share of the route’s volumes is expected to come from the
textile industry. One freight ferry is deployed on the route.
Capacity agreement with UK’s Department for Transport
(DfT)
In 2020, DFDS entered into an agreement starting on 1
January 2021 with the UK’s DfT to ensure ferry freight
capacity for vital goods such as medicine and food for the
first six months of 2021. The agreement comprises the
Dieppe-Newhaven and Rotterdam-Felixstowe routes.
Major events after Q1
New unaccompanied freight ferry route opened between
Calais and Sheerness
On 7 April 2021, the opening of a new route between
Calais and Sheerness was announced. The new route is
opened in response to increasing demand for additional
ferry capacity for unaccompanied freight (trailers)
between France and the UK. The first departure is planned
for 1 June 2021. The new route will have one daily round
trip operating seven days per week, deploying one freight
ferry (ro-ro).
Opening of duty-free border shops in Calais and Dunkirk
DFDS has since 1 January 2021, in accordance with the
new Brexit trade agreement, offered duty-free sales on
board our four passenger ferry routes connecting the UK
and the EU – Dover-Calais, Dover-Dunkirk, Amsterdam-
Newcastle and Newhaven-Dieppe.
On 30 April 2021, following a tender, DFDS was awarded
the right to operate a new duty-free shore-based shop in
the Port of Calais. The 1,000 m2 shop is expected to open
in October 2021. In the Dunkirk port terminal, operated by
DFDS, a shore-based duty-free shop of 700 m2 is expected
to open in July 2021.
It is expected that the shops will offer up to 50 per cent
off UK high street prices in line with the current on board
offering.
Financial performance
Revenue
The Group’s Q1 revenue was DKK 3,768m, a decrease of
1.2% compared to 2020.
Revenue
DKK m
Q1 2021
Q1 2020
Change, %
Change
Ferry Division*
2,594
2,628
-1.3
-34
Logistics Division*
1,426
1,394
2.3
32
Non-allocated items
136
139
-2.1
-3
Eliminations
-389
-348
-11.8
-41
DFDS Group
3,768
3,813
-1.2
-46
* 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.
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Ferry Division’s Q1 revenue decreased 1.3% to
DKK 2,594m as travel restrictions reduced passenger
revenue across business units by DKK 223m or 71.9%.
Freight ferry revenue across business units was up 13.6%
excluding bunker surcharges. The increase mainly reflects
the launch of a new Irish route and standby capacity
agreements with DfT. Freight volumes linked to the UK
dropped as expected in January but recovered to levels
above 2020 faster than expected in the rest of the
quarter. Mediterranean’s volumes were above 2020
through the quarter.
Logistics Division’s Q1 revenue increased 2.3% to
DKK 1,426m. Activity linked to the UK dropped as
expected in January but likewise recovered to levels
above 2020 faster than expected in the rest of the
quarter.
Operating profit before depreciation (EBITDA) and
special items
The Group’s Q1 EBITDA increased 23% to DKK 750m.
Ferry Division’s Q1 EBITDA increased 22% to DKK 641m.
The freight ferry activities increased EBITDA 27% to
DKK 735m while EBITDA for the passenger activities
decreased DKK 42m to DKK -94m.
The main drivers of the freight result was continued
volume growth and improvement of operational efficiency
in the Mediterranean business unit and income from
activities linked to the Brexit transition. This included a
successful launch of a new route between Ireland and
France, standby capacity agreements with DfT and
introduction of customs clearance services. Earnings for
activities linked to the UK were reduced in January by a
large drop in volumes following the UK stockbuilding in Q4
2020. Volumes and earnings recovered through the rest of
the quarter.
The decrease in the result for the passenger activities was
mostly due to the first two months of Q1 2021 as the
result in those months were not impacted by Covid-19 in
2020.
Logistics Division’s Q1 EBITDA increased 6% to
DKK 101m. Earnings in all three business units were
reduced in January as the introduction of new rules and
processes post Brexit slowed trade and turnaround times
for equipment generating extra costs. Through the
remainder of the quarter trading and earnings recovered
for most traffics. Some mitigation from customs clearance
activities were achieved in Q1.
EBITDA for Non-allocated corporate costs was an income
of DKK 8m, a positive variance of DKK 18m compared to
2020 due to cost savings and timing differences.
The Group’s Q1 result includes compensations of DKK 29m
from government Covid-19 programs.
Depreciation and operating profit (EBIT) before
special items
Depreciation in Q1 of DKK 470m decreased 2% compared
to 2020 as redelivery of chartered freight ferries more
than offset the increase in depreciation from freight ferry
newbuildings.
The Group’s Q1 EBIT before special items increased
DKK 145m or 109% to DKK 278m.
Special items and operating profit (EBIT) after special
items
In Q1 2021, special items were a net cost of DKK 10m
related to acquisition and integration planning costs
regarding HSF Logistics Group.
The Group’s Q1 EBIT after special items increased
DKK 137m or 105% to DKK 268m.
Financial items
Total finance, net in Q1 was a cost of DKK 77m which was
an increase of DKK 42m compared to Q1 2020. The net
interest cost increased DKK 9m mainly due to increased
interest costs related to a temporary waiver of loan
covenants. The waiver was cancelled by DFDS in May
2021. The remainder of the increase was related to a
negative variance on net currency adjustments primarily
due to an income in 2020.
Profit before special items and tax
The Q1 profit before special items and tax increased
DKK 104m or 106% to DKK 202m. The profit for the
period increased DKK 91m or 112% to DKK 172m.
Earnings per share
Q1 earnings per share (EPS) increased to DKK 2.91
compared to DKK 1.36 in Q1 2020.
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Cash flow and investments
The Q1 cash flow from operating activities was
DKK 538m. The Q1 free cash flow (FCFF) was DKK 146m
and DKK -50m adjusted for payment of lease liabilities
including interest. Net investments in Q1 amounted to a
negative cash flow of DKK 347m that included DKK 296m
of ferry investments.
The Q1 cash flow from financing activities was positive by
DKK 166m. This included a net cash flow from loans of
DKK 298m, payment of lease liabilities of DKK 180m and
a cash inflow of DKK 48m from the exercise of share
options. The Q1 net cash flow was positive by DKK 260m
and cash and cash equivalents thus increased to DKK
1,522m at the end of Q1.
Invested capital and ROIC
Invested capital was DKK 22.5bn at the end of Q1 2021
which was 2% lower than the same period in 2020. The
average invested capital in Q1 2021 decreased 2% to
DKK 22.3bn compared to Q1 2020.
The return on invested capital, ROIC, for Q1 2021 (last
twelve months) improved to 4.2% before special items
compared to 3.5% for 2020.
Capital structure
At the end of Q1 2021 net-interest-bearing debt (NIBD)
was DKK 11.4bn, a decrease of 7% compared to the end of
Q1 2020. Financial leverage, as measured by the ratio of
NIBD to EBITDA before special items, was a ratio of 4.0
compared to 4.2 at year-end 2020.
Operating profit before depreciation (EBITDA) & special items
DKK m
Q1 2021
Q1 2020
Change, %
Change
Ferry Division*
641
525
22.2
116
Logistics Division*
101
95
6.4
6
Non-allocated items
8
-10
-183.4
18
DFDS Group
750
610
23.0
141
EBITDA-margin, %
19.9
16.0
n.a.
3.9
* 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
Q1 2021
Q1 2020
Change, %
Change
EBITDA before special items
750
610
23.0
141
Associates and joint ventures
-3
-2
n.a.
-2
Profit on disposals
1
2
n.a.
-1
Depreciation and impairment
-470
-477
1.5
7
EBIT before special items
278
133
109.4
145
Financial items
DKK m
Q1 2021
Q1 2020
Change, %
Change
Interests, net
-70
-61
-15.2
-9
Foreign exchange gains/losses, net
-3
30
109.2
-32
Other items, net
-4
-4
0.7
0
Total finance, net
-77
-35
-118.6
-42
0
100
200
300
400
500
600
700
800
900
1.000
1.100
1.200
1.300
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS
2019 2020 2021
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Equity
Equity amounted to DKK 10,868m at the end of Q1 2021,
including non-controlling interests of DKK 93m. This was
an increase of 5% compared to the end of Q1 2020. Total
comprehensive income for Q1 2021 was DKK 219m. There
were no material transactions with owners in Q1 2021.
The equity ratio was 39% at the end of Q1 2021 which
was on level with Q1 2020.
Outlook 2021
The EBITDA outlook for 2021 was raised on 23 April 2021
following stronger than expected freight results for most
business units. The key outlook assumptions have been
updated below.
Uncertainty remains high and significant changes to
outlook assumptions may still occur in the rest of the
year.
Key freight outlook assumptions for 2021
During Q1 trade between the EU and UK stabilised faster
than expected. Earnings in 2021 for UK-linked activities
are therefore no longer expected to be below 2020.
The Mediterranean business unit improved earnings more
than expected in Q1 and the positive earnings trend is
expected to continue.
In the Baltic region, freight ferry capacity in the market is
still expected to increase compared to 2020.
A competing ferry company has announced a plan to
deploy one or more combined freight and passenger ferries
(ro-pax) between Dover and Calais in June 2021.
Key outlook assumptions for HSF Logistics Group
The acquisition of HSF Logistics Group is assumed to be
consolidated from 1 July 2021 compared to previously
1 May 2021. The consolidation is now expected to include
revenue of around DKK 1.3bn and EBITDA before special
items of around DKK 200m. 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 due to travel restrictions
imposed to limit the spread of Covid-19.
It is assumed that around 25%, compared to previously
around 40%, of the decrease in 2020 is regained in 2021
as travel restrictions are now expected to be eased later in
Q2. The high season for ferry travel is Q3 and the outlook
is thus especially sensitive to the scope of restrictions in
this quarter.
Revenue outlook
The Group’s revenue is still expected to increase by 20-
25% compared to 2020. The main growth drivers are the
addition of HSF Logistics Group, the opening of a new
route between Ireland and France and an increase in
passenger volumes.
EBITDA outlook before special items
The outlook for the Group’s EBITDA before special items
was raised on 23 April 2021 to a range of
DKK 3.2-3.6bn (2020: DKK 2.7bn). The range was
previously DKK 3.0-3.5bn. See the outlook table for a
divisional split.
OUTLOOK 2021*
DKK m
New outlook
2021
Previous outlook
2021
2020
Revenue growth
20-25%
20-25%
13,971
EBITDA before special items
3,200-3,600
3,000-3,500
2,732
Per division:
Ferry Division
2,550-2,850
2,300-2,700
2,332
Logistics Division
700-800
750-850
445
Non-allocated items
-50
-50
-45
EBIT before special items
1,200-1,600
1,000-1,500
858
Investments
-2,800
-2,800
-1,618
*Including acquisition of HSF Logistics Group assumed from 1 July
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EBIT outlook before special items
The Group’s EBIT before special items is expected to be
within a range of DKK 1.2-1.6bn (2020: DKK 858m). The
range was previously DKK 1.0-1.5bn.
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.
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 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 and its possible
consequences constitute 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.
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UK freight ferry volumes recovered through Q1
DFDS’ Vlaardingen port terminal is the hub for two freight
ferry routes to Felixstowe and Immingham, respectively, in
the UK. After a drop in volumes in January caused by the
Brexit transition, volumes picked up through the rest of the
quarter.
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Q1 2021 Interim Report / p 11
The division is organised in five
business units:
• North Sea
• Baltic Sea
• Channel
• Mediterranean
• Passenger
Q1 market, activity and result trends
Total Q1 freight volumes increased 1.7% compared to
2020. Net adjustments for structural route changes
reduced growth 0.6 ppt to 1.1%.
Total Q1 passenger volumes decreased 85.7% compared
to 2020 due to the tight travel restrictions that were in
place throughout the quarter.
North Sea
Q1 freight volumes were up 0.4% compared to 2020 with
growth distributed unevenly through the quarter. In
January, volumes on routes calling the UK dropped as
expected considerably due to the UK stockbuilding ahead
of Brexit in Q4 2020. For the last two months of Q1,
volumes on UK routes were above 2020. Volumes
between Sweden and Belgium were above 2020 through
the quarter.
Q1 EBITDA increased 3% to DKK 301m. Income from
activities related to the Brexit transition were offset by a
higher net bunker cost mainly due to a lower oil price
spread compared to Q1 2020.
Baltic Sea
Q1 freight volumes were up 11.8% compared to 2020
adjusted for route changes. The volume increase was
mainly due to an increase in capacity between Estonia and
Sweden where a second ferry was deployed. Activity
levels were also higher on the other Baltic routes.
Although passenger travel was restricted, volumes were
2.4% above 2020 as more passengers between Estonia
and Sweden offset lower volumes on the other routes.
Q1 EBITDA decreased 15% to DKK 83m as the positive
impact of higher volumes was more than offset by a
higher net bunker cost mainly due to a lower oil price
spread compared to Q1 2020.
Channel
Q1 freight volumes were 2.9% above 2020 driven by the
new route between Ireland and France that was launched
Ferry Division
Ferry Division
2021
2020*
2020-21
2020*
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue
2,594
2,628
1,808
2,469
2,540
9,412
9,445
EBITDA before special items
641
525
392
730
668
2,432
2,315
Share of profit/loss of associates and
joint ventures
-3
-2
-2
-2
0
-7
-5
Profit/loss on disposal of non-current assets, net
1
0
0
1
0
2
1
Depreciation and impairment
-387
-386
-368
-366
-390
-1,511
-1,509
EBIT before special items
251
137
23
363
278
916
802
EBIT margin before special items, %
9.7
5.2
1.3
14.7
11.0
9.7
8.5
Special items, net
0
0
79
-72
-105
-99
-98
EBIT
251
137
102
291
173
817
703
Invested capital, average
20,299
20,214
20,235
20,275
20,259
20,291
20,222
ROIC before special items, %
-
-
-
-
-
4.4
3.8
Average number of employees
5,151
5,806
-
-
-
5,498
5,452
Lane metres, '000
10,246
10,079
8,394
10,529
11,883
41,052
40,886
Tons, '000
167
194
166
138
166
638
664
Passengers, '000
83
579
152
578
186
1,002
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
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Q1 2021 Interim Report / p 12
on 2 January 2021. Volumes were down 2.0% excluding
the new route. Volumes were otherwise unevenly
distributed through the quarter as January volumes
dropped as expected considerably due to the UK
stockbuilding ahead of Brexit in Q4 2020. For the last two
months of Q1, volumes were above 2020.
Q1 passenger volumes were down 89.8% as tight travel
restrictions were upheld throughout the quarter. Duty-free
sales were introduced at the start of the year.
Q1 EBITDA increased DKK 35m or 90% to DKK 74m driven
by a successful launch of the new Irish route and income
from other activities related to the Brexit transition. This
was partly offset by a lower result from passenger
activities and a higher net bunker cost.
Mediterranean
Q1 freight volumes increased 9.6% driven by continued
growth in trade between Turkey and Europe as well as the
opening of a new route between Turkey and Spain. The
volume growth was also supported by a further
stabilisation of operations.
Q1 EBITDA increased DKK 101m or 69% to DKK 248m
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. Both ferries between the Netherlands and the
UK operated in the quarter to support freight volumes. The
total decrease in passenger volumes was 97.2%.
Q1 EBITDA decreased 15% to DKK -100m due to a lower
result in the first two months of the quarter as Covid-19
began to disrupt activities during March last year.
Non-allocated items
These items primarily include external charter activities.
Q1 EBITDA decreased 7% to DKK 36m.
2021
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Ferry Division
2021
2020
2020-21
2020
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
North Sea*
Revenue
971
944
707
816
953
3,448
3,420
EBITDA before special items
301
291
252
282
342
1,177
1,168
EBIT before special items
150
145
122
154
190
615
610
Invested capital
6,762
5,931
5,964
5,856
6,054
6,114
5,951
ROIC before special items, %
-
-
-
-
-
9.9
10.1
Lane metres freight, '000
3,358
3,350
2,657
3,264
3,758
13,037
13,028
Tons, '000
167
194
166
138
166
638
664
Baltic Sea
Revenue
306
323
307
327
310
1,250
1,268
EBITDA before special items
83
97
119
138
80
420
434
EBIT before special items
51
57
78
95
39
263
268
Invested capital
1,525
1,712
1,642
1,646
1,844
1,674
1,625
ROIC before special items, %
-
-
-
-
-
15.5
16.4
Lane metres freight, '000
1,104
1,140
1,100
1,099
1,094
4,398
4,434
Passengers, '000
40
39
54
69
47
210
209
Channel
Revenue
568
512
361
573
566
2,068
2,012
EBITDA before special items
74
39
32
135
129
369
334
EBIT before special items
-16
-22
-27
73
67
97
91
Invested capital
1,701
1,811
1,779
1,677
1,573
1,708
1,713
ROIC before special items, %
-
-
-
-
-
5.6
5.2
Lane metres freight, '000
4,531
4,404
3,939
5,016
5,672
19,158
19,031
Passengers, '000
38
367
98
406
119
659
989
Mediterranean
Revenue
670
581
331
529
631
2,160
2,071
EBITDA before special items
248
147
66
188
230
732
631
EBIT before special items
155
55
-26
90
126
345
245
Invested capital
9,558
9,858
9,910
9,798
9,535
9,732
9,787
ROIC before special items, %
-
-
-
-
-
3.5
2.4
Lane metres freight, '000
1,191
1,087
696
1,045
1,206
4,138
4,034
Passenger
Revenue
31
209
27
190
62
310
489
EBITDA before special items
-100
-87
-101
-42
-143
-386
-373
EBIT before special items
-124
-130
-146
-75
-172
-518
-524
Invested capital
629
871
673
634
575
676
722
ROIC before special items, %
-
-
-
-
-
-77.4
-73.1
Lane metres freight, '000
61
99
2
104
154
321
359
Passengers, '000
5
173
3
104
21
132
300
Non-allocated items
Revenue
86
102
111
91
132
420
436
EBITDA before special items
36
39
24
28
31
118
122
EBIT before special items
35
32
23
27
29
114
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
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Q1 2021 Interim Report / p 14
The division is organised in three
business units:
• Nordic
• Continent
• UK & Ireland
Q1 market, activity and result trends
Total Q1 logistics volumes increased 3.6% compared to
2020. Net adjustments for structural changes reduced
growth to -5.1% reflecting a considerable drop in volumes
in mainly January caused by the Brexit transition.
Customs clearance services for UK volumes were launched
in the quarter in all business units.
Nordic
Q1 transported units decreased 8.9% adjusted for Finnish
volumes not included in the reporting in 2020. Volumes
were mainly lower for activities linked to the UK due to a
drop in January volumes caused by the Brexit transition.
During the quarter volumes stabilised and increased to a
level above 2020.
Q1 EBITDA decreased slightly to DKK 31m due to the
initial negative impact of the Brexit transition, including
higher equipment costs on UK-linked activities.
Continent
Q1 transported units were down 1.5% compared to 2020
as high activity in all Dutch and German activities in the
second half of the quarter was offset by both a drop in
volumes from the Brexit transition and lower volumes
from sectors exposed to Covid-19 in Belgium, including
airline catering.
Q1 EBITDA increased 9% to DKK 31m as an improved
result for the special cargo activity offset the initial
negative impact of the Brexit transition, including higher
equipment costs, on UK-linked activities. The special cargo
result included one-off costs in 2020.
UK & Ireland
Q1 transported units decreased 9.4%. The volume
decrease mainly reflects downscaling of activity in a cold
store in Warrington. Despite customer clearance issues for
seafood exports in the beginning of the quarter, the Q1
Scottish aquaculture volumes ended the quarter above
2020. Other cold chain volumes declined as Covid-19
increased demand in 2020.
Q1 EBITDA increased 13% to DKK 39m mainly due to a
higher result for the cold chain acitivities and activities
linked to the Brexit transition, including customs clearance
and standby capacity agreements.
Logistics Division
Logistics Division
2021
2020*
2020-21
2020*
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue
1,426
1,394
1,147
1,316
1,444
5,333
5,301
EBITDA before special items
101
95
95
150
123
468
462
Profit/loss on disposal of non-current assets, net
0
2
2
0
0
2
3
Depreciation and impairment
-62
-74
-74
-74
-70
-280
-292
EBIT before special items
39
22
22
76
52
190
173
EBIT margin before special items, %
2.7
1.6
1.9
5.8
3.6
3.6
3.3
Special items, net
0
0
-4
-7
-1
-12
-12
EBIT
39
22
18
69
51
177
161
Invested capital, average
1,469
1,737
1,727
1,584
1,465
1,579
1,613
ROIC before special items, %
-
-
-
-
-
9.6
8.5
Average number of employees
2,159
2,113
-
-
-
2,127
2,112
Units, '000
132
142
114
134
142
522
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
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Q1 2021 Interim Report / p 15
Logistics Division
2021
2020
2020-21
2020
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
Nordic*
Revenue
444
453
366
387
453
1,651
1,659
EBITDA before special items
31
32
18
40
41
130
131
EBIT before special items
13
12
-2
19
22
51
50
Invested capital
388
465
409
372
379
403
399
ROIC before special items, %
-
-
-
-
-
10.5
10.4
Units, '000 **
29.8
27.7
23.1
26.7
31.4
110.9
108.9
Continent*
Revenue
644
633
523
605
661
2,433
2,423
EBITDA before special items
31
28
41
55
41
168
166
EBIT before special items
6
-2
13
30
15
63
55
Invested capital
580
799
710
625
588
660
711
ROIC before special items, %
-
-
-
-
-
7.5
6.1
Units, '000
57.5
58.4
48.0
56.5
61.6
223.6
224.5
UK & Ireland*
Revenue
443
403
357
421
430
1,651
1,611
EBITDA before special items
39
34
36
55
41
170
165
EBIT before special items
20
12
11
28
16
75
67
Invested capital
545
527
544
507
458
516
504
ROIC before special items, %
-
-
-
-
-
11.5
10.6
Units, '000
45.2
49.9
42.6
50.3
49.0
187.1
191.8
Non-allocated items
Revenue
35
27
26
20
15
97
89
EBITDA before special items
0
0
0
0
0
0
0
EBIT before special items
1
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
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Q1 2021 Interim Report / p 16
2021
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Q1 2021 Interim Report / p 17
2021
2020
2020-21
2020
DKK m
Note
Q1
Q1
LTM
Full year
Revenue
3
Costs
Ferry and other ship operation and maintenance
-699
-851
-2,417
-2,569
Freight handling
-625
-634
-2,373
-2,383
Transport solutions
-804
-777
-2,931
-2,905
Employee costs
-746
-780
-2,828
-2,862
Costs of sales and administration
-143
-160
-503
-520
Operating profit before depreciation (EBITDA) and special items
Share of profit/loss of associates and joint ventures
-3
-2
-7
-5
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
-300
-299
-1,154
-1,153
Depreciation, other non-current assets
-169
-178
-712
-721
Impairment losses, other non-current assets
Operating profit (EBIT) before special items
Special items, net
4
-10
-2
-126
-117
Operating profit (EBIT)
Financial income
Financial costs
-78
-65
-322
-280
Profit before tax
Tax on profit
-20
-15
-28
-24
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
DFDS Group Income statement
2021
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Q1 2021 Interim Report / p 18
2021
2020
2020-21
2020
DKK m
Q1
Q1
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
-31
-29
-59
Items that will not be reclassified subsequently to the Income statement
-31
-29
-59
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
-209
-103
Value adjustment transferred to operating costs
-8
-3
Value adjustment transferred to financial costs
Value adjustment transferred to non-current tangible assets
-30
-38
Tax on items that may be reclassified to the Income statement
Foreign exchange adjustments, subsidiaries
-136
-37
Items that are or may be reclassified subsequently to the Income statement
-48
-52
-147
Total other comprehensive income after tax
-79
-81
-206
Total comprehensive income
Attributable to:
Equity holders of DFDS A/S
-1
Non-controlling interests
Total comprehensive income
DFDS Group – statement of Comprehensive income
2021
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Q1 2021 Interim Report / p 19
DFDS Group - Balance sheet
Assets
2021
2020
2020
DKK m
Q1
Q1
Full year
Goodwill
Other non-current intangible assets
Software
Development projects in progress
Non-current intangible assets
Land and buildings
Terminals
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
Q1
Q1
Full year
Share capital
Reserves
-222
-172
-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
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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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
-8
-8
-8
Value adjustment transferred to financial costs
Value adjustment transferred to non-current tangible assets
Foreign exchange adjustments, subsidiaries
Items that are or may subsequently be reclassified to the Income statement
Total other comprehensive income after tax
Total comprehensive income
Transactions with owners
Vested share-based payments
Cash from sale of treasury shares related to exercise of share options
Transactions with owners
Equity at 31 March 2021
-378
-21
DFDS Group - Statement of changes in equity 1 January - 31 March 2021
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Q1 2021 Interim Report / p 21
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
-31
-31
-31
Items that will not subsequently be reclassified to the Income statement
-31
-31
-31
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
-30
-30
-30
Tax on items that will be reclassified to the Income statement
Foreign exchange adjustments, subsidiaries
-135
-135
-136
Items that are or may subsequently be reclassified to the Income statement
-135
-48
-48
Total other comprehensive income after tax
-135
-24
-79
-79
Total comprehensive income
-135
-1
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 31 March 2020
-492
-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 - 31 March 2020
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2021
2020
2020-21
2020
DKK m
Q1
Q1
LTM
Full year
Operating profit before depreciation (EBITDA) and special items
Cash flow effect from special items related to operating activities
-12
-57
-80
-125
Adjustments for non-cash operating items, etc.
Change in working capital
-200
-116
Payment of pension liabilities and other provisions
-7
-8
-31
-31
Cash flow from operating activities, gross
Interest received, etc.
Interest paid, etc.
-61
-67
-276
-276
Taxes paid
-45
-42
Cash flow from operating activities, net
Investments in ships including dockings, rebuildings and ships under construction (incl. settlement of forward exchange contracts) related thereto
-296
-546
-1,172
-1,422
Sale of ships including prepayment received on ship held for sale
Investments in other non-current tangible assets
-45
-62
-177
-195
Sale of other non-current tangible assets
Investments in non-current intangible assets
-14
-18
-66
-70
Acquisition of enterprises, associates, joint ventures and activities
-14
-14
Other investing cash flows
-143
-146
Cash flow to/from investing activities, net
-347
-631
-1,334
-1,618
Cash flow before financing activities, net
-263
Proceed from bank loans and loans secured by mortgage in ships
Repayment and instalments of bank loans and loans secured by mortgage in ships
-66
-978
-878
-1,791
Payment of lease liabilities
-180
-165
-617
-602
Proceeds from sale of treasury shares
Cash received from exercise of share options
Other financing cash flows
-60
-60
Cash flow to/from financing activities, net
-295
-458
Net increase (decrease) in cash and cash equivalents
-559
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
-1
-2
Cash and cash equivalents at end of period *
* At 31 March 2021 DKK 147m (31 March 2020: DKK 108m) of the cash was deposited on restricted bank accounts.
DFDS Group – Statement of cash flows
2021
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Q1 2021 Interim Report / p 23
Note 1 Accounting policies and significant estimates
Basis of reporting
This section provides an overview of our principal accounting policies and 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 Q1 2021 compared to year-end
2020, particularly related to passenger traffic that has been impacted by and still is
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
ongoing consequences of Covid-19 are still considered such an indication and consequently,
DFDS has in Q1 2021 revisited its impairment calculations from year-end 2020.
While the current Covid-19 situation is an impairment indicator, 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 Q4 2020,
DFDS recognised an impairment loss of DKK 100m on the Oslo-Frederikshavn-Copenhagen
route. In Q1 2021 Management has revisited forecasts for all CGUs and concludes that the
assumptions applied at year-end 2020 remains valid for all CGUs.
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
Q1 2021 Interim Report / p 24
Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1 2021
External revenue
2,354
1,410
4
3,768
Intragroup revenue
240
17
133
389
Total revenue
2,594
1,426
136
4,157
Operating profit (EBITDA) before special items
641
101
8
750
Operating profit (EBIT) before special items
251
39
-12
278
Operating profit after special items (EBIT)
251
39
-22
268
Invested capital, average
20,299
1,469
523
22,291
DKK m
Ferry
Division*
Logistics
Division*
Non-
allocated
Total
Q1 2020
External revenue
2,424
1,387
2
3,813
Intragroup revenue
204
8
137
348
Total revenue
2,628
1,394
139
4,162
Operating profit (EBITDA) before special items
525
95
-10
610
Operating profit (EBIT) before special items
137
22
-27
133
Operating profit after special items (EBIT)
137
22
-28
131
Invested capital, average
20,214
1,737
698
22,649
* 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
Q1 2021 Interim Report / p 25
Note 3 Revenue
Q1 2021
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
826
-
0
826
Baltic Sea
292
-
0
292
English Channel
571
-
0
571
Mediterranean
666
-
0
666
Continent
-
622
0
622
Nordic
-
405
0
405
UK/Ireland
-
383
0
383
Other
0
0
4
4
Total
2,354
1,410
4
3,768
Product and services
Seafreight and shipping logistics solutions
1,944
50
0
1,994
Transport solutions
4
1,340
0
1,344
Passenger seafare and on board sales
87
0
0
87
Terminal services
203
1
0
205
Charters
69
0
0
69
Agency and other revenue
46
18
4
68
Total
2,354
1,410
4
3,768
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
34m (Q1 2020: DKK 137m).
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 69m (Q1 2020: DKK 87m).
Q1 2020
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North sea*
1,043
-
0
1,043
Baltic sea
306
-
0
306
English Channel
498
-
0
498
Mediterranean
577
-
0
577
Continent*
-
610
0
610
Nordic*
-
416
0
416
UK/Ireland*
-
361
0
361
Other
0
0
2
2
Total
2,424
1,387
2
3,813
Product and services
Seafreight and shipping logistics solutions
1,858
0
0
1,858
Transport solutions*
0
1,321
0
1,322
Passenger seafare and on board sales
311
0
0
311
Terminal services*
143
33
0
176
Charters
87
0
0
87
Agency and other revenue*
25
33
2
60
Total
2,424
1,387
2
3,813
* 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
Q1 2021 Interim Report / p 26
Note 4 Special items
2021
2020
DKK m
Q1
Q1
Acquisition and integration planning costs relating to HSF Logistics Group
-10
0
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
0
-2
Special items, net
-10
-2
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 around 1 July 2021 compared to previously 1
May 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 Q1 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.
Q1 2021
Q1 2020
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
211
211
417
417
Securities (Level 3)
10
10
10
10
Financial liabilities
Derivatives (Level 2)
96
96
290
290
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q1 2021 Interim Report / p 27
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 decreased by DKK 198m, equivalent to 10%. Operating
profit before depreciation and special items (EBITDA) increased to DKK 408m from DKK
403m, equivalent to an increase of 1%.
Profit before tax decreased from DKK -12m in Q1 2020 to DKK -37m in Q1 2021.
The Parent Company’s net interest-bearing debt increased from DKK 4,467m at 31 March
2020 to DKK 4,583m at 31 March 2021.
2021
2020
2020-21
2020
DKK m
Q1
Q1
LTM
Full year
Income statement
Revenue
1,816
2,014
7,187
7,385
Operating profit before depreciation (EBITDA) and
special items
408
403
1,763
1,758
Operating profit (EBIT) before special items
-18
-19
106
104
Special items, net
-10
-1
-181
-172
Operating profit (EBIT)
-27
-20
-75
-68
Financial items, net
-10
8
185
203
Profit before tax
-37
-12
110
135
Profit for the period
-38
-14
116
140
Assets
Non-current intangible assets
405
378
400
Non-current tangible assets
5,620
5,170
5,458
Right-of-use assets
1,117
1,476
1,404
Investments in affiliated companies, associates and
joint ventures
6,766
6,624
6,760
Non-current receivables from affiliated companies
260
204
261
Other non-current assets
129
254
110
Non-current assets
14,298
14,106
14,393
Current receivables from affiliated companies
732
1,187
699
Receivables from associates and joint ventures
24
45
27
Cash
912
24
735
Other current assets
1,549
1,393
1,381
Current assets
3,217
2,649
2,842
Assets
17,515
16,755
17,236
Equity and liabilities
Equity
9,425
9,391
9,382
Non-current liabilities
3,290
2,892
3,093
Current liabilities to affiliated companies
2,215
1,950
2,139
Other current liabilities
2,584
2,522
2,622
Current liabilities
4,799
4,472
4,762
Equity and liabilities
17,515
16,755
17,236
Equity ratio, %
53.8%
56.0%
54.4%
Net interest-bearing debt
4,583
4,467
4,718
2021
Management review
Ferry
Logistics
Reports
Financials
Contact
Q1 2021 Interim Report / p 28
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
Q1 2021 Interim Report / p 29
DFDS A/S
Sundkrogsgade 11, DK-2100 Copenhagen Ø
CVR 14 19 47 11
www.dfds.com
11 May 2021
Company announcement no.: 19/2021
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.