Q1 2022 interim report
GOOD START TO 2022
• Unchanged full-year earnings outlook of more than 20% growth
• Q1 EBITDA increased 9% to DKK 822m
• Logistics boosted by HSF integration and margin improvement
• Passenger recovery ahead of expectations
• Baltic Sea freight volumes lowered by war in Ukraine
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Q1 2022
• Freight ferry volumes continued
to grow
• Passenger ferry markets recovered
through the quarter
• HSF in line with expectations
Outlook 2022
• EBITDA range DKK 3.9-4.4bn
(2021: DKK 3.4bn)
• Revenue growth increased to
around 30% (previously 23-27%)
“Continuously adapting to challenges
and opportunities, we remain on track to
raise earnings more than 20% in 2022.”
Torben Carlsen, CEO
Ferry Division’s revenue was increased by higher freight
and passenger activity as well as a rise in bunker
surcharge revenue. Logistics Division’s revenue was
increased by the acquisition of HSF Logistics Group in
September 2021 and ICT Logistics in January 2022 as well
as higher activity and yield increases for the existing
activities. Group revenue increased 52% to DKK 5.7bn.
EBITDA increased 9% to DKK 822m. The total freight
EBITDA for ferry and logistics activities before special
items increased 10% to DKK 926m driven mainly by
growth in the Mediterranean business unit, improved
logistics performance, and the acquisition of HSF Logistics
Group. The war in Ukraine reduced Baltic Sea’s freight
volumes and the result.
The total EBITDA for passenger activities in the Baltic Sea,
Channel, and Passenger business units decreased 12% to
DKK -104m. Earnings were reduced by the re-opening of
Oslo-Frederikshavn-Copenhagen in a low season market
environment with passenger numbers still recovering from
Covid-19. This offset higher Channel earnings as all ferries
have continuously operated in this market.
Outlook 2022
The revenue growth outlook is increased to around 30%
compared to 2021 due to significantly higher revenue
from oil surcharges as well as higher passenger revenue
(previously 23-27%). EBITDA before special items is
unchanged DKK 3.9-4.4bn (2021: DKK 3.4bn). The outlook
is detailed on page 10.
Highlights Q1
11 May 2022. Conference call today at 10.00am CET
Access code: 71227226# Phone numbers to the call: DK +45 35445577, US +1 631 913 1422,
UK +44 333 300 0804
KEY FIGURES
2022
2021
2021-22
2020-21
2021
DKK m
Q1
Q1
Change, %
LTM
LTM
Change, %
FY
Revenue
5,725
3,768
51.9
19,826
13,925
42.4
17,869
EBITDA before special items
822
750
9.5
3,482
2,872
21.2
3,411
EBIT before special items
214
278
-23.0
1,249
1,003
24.5
1,313
Profit before tax and special items
147
202
-27.3
980
687
42.6
1,035
Profit before tax
149
192
-22.5
1,026
562
82.7
1,069
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2022
2021
2021-22
2021
DKK m
Q1
Q1
LTM
Full year
Income statement
Revenue
5,725
3,768
19,826
17,869
• Ferry Division
3,369
2,594
12,581
11,806
• Logistics Division
2,666
1,426
8,394
7,155
• Non-allocated items
162
136
551
526
• Eliminations
-472
-389
-1,700
-1,618
Operating profit before depreciation (EBITDA) and special
items
822
750
3,482
3,411
• Ferry Division
598
641
2,810
2,852
• Logistics Division
216
101
708
593
• Non-allocated items
7
8
-36
-34
Profit/loss on disposal of non-current assets, net
4
1
6
2
Operating profit (EBIT) before special items
214
278
1,249
1,313
Special items, net
2
-10
46
34
Operating profit (EBIT)
216
268
1,295
1,348
Financial items, net
-68
-77
-269
-278
Profit before tax
149
192
1,026
1,069
Profit for the period
114
172
918
976
Profit for the period excluding non-controlling interest
111
168
902
958
Capital
Total assets
32,450
27,820
-
30,721
DFDS A/S' share of equity
11,353
10,775
-
11,446
Equity
11,462
10,868
-
11,554
Net interest-bearing debt
14,638
11,435
-
13,481
Invested capital, end of period
26,424
22,462
-
25,369
Invested capital, average
25,897
22,291
24,185
23,324
2022
2021
2021-22
2021
DKK m
Q1
Q1
LTM
Full year
Cash flows
Cash flows from operating activities, before financial items
and after tax
789
493
3,781
3,484
Cash flows from investing activities
-953
-347
-3,816
-3,210
• Acquisition of enterprises and activities
-35
0
-1,801
-1,765
• Other investments, net
-918
-347
-2,015
-1,444
Free cash flow
-163
146
-35
274
Repayment of lease liabilities and lease interest
-336
-196
-1,070
-929
Adjusted free cash flow (FCFF)
-500
-50
-1,104
-655
Key operating and return ratios
Average number of employees (FTE)
10,832
7,965
8,816
8,874
Number of ships
80
74
-
80
Revenue growth (reported), %
51.9
-1.2
11.0
27.9
EBITDA-margin before special items, %
14.4
19.9
17.6
19.1
Operating margin before special items, %
3.7
7.4
6.3
7.3
Revenue/invested capital average, (times)
-
-
0.8
0.8
Return on invested capital (ROIC), %
-
-
4.7
5.3
ROIC before special items, %
-
-
4.5
5.2
Return on equity, %
-
-
8.2
8.7
Key capital and per share ratios
Equity ratio, %
35.3
39.1
-
37.6
Net interest-bearing debt/EBITDA, (times)*
-
-
4.0
3.7
Earnings per share (EPS), DKK
1.94
2.91
15.72
16.69
Dividend paid per share, DKK
4.00
0.00
4.00
0.00
Number of shares, end of period, '000
58,632
58,632
-
58,632
Weighted average number of circulating shares, '000
57,323
57,558
-
57,416
Share price, DKK
288.4
324.8
-
349.0
Market value
16,511
18,695
-
20,018
* The ratio LTM and full-year 2021 includes a pro forma EBITDA for HSF Logistics Group.
Definitions on page 30.
Key figures
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Quarterly reporting of selected key figures for ESG
(Environment, Social, Governance) was included in the
quarterly report from Q2 2021.
*2021 full-year ESG data excludes HSF Logistics Group acquired in
September 2021.
ESG key figures
2022
2021
2021
Environmental data
Unit
Q1
Q1
Full year*
Total number of days operated
Days
5,870
5,757
23,197
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet)
gCO2
13.3
13.4
13.0
CO2 emissions per GT nautical mile (Route network)
gCO2
13.8
14.0
13.6
Energy consumption
Total fuel consumption (Route network)
Tonnes HFOe
200,196
180,179
771,738
Oil spills
Spills (>1 barrel)
Number
0
0
0
2022
2021
2021
Social data
Unit
Q1
Q1
Full year*
Representation of women
Total workforce:
%
23
24
24
• Non-office based
%
12
12
13
• Office based
%
43
43
44
Senior management
%
17
17
17
Managers
%
15
10
14
Employees
%
25
26
27
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mill. hours
3.8
5.3
4.3
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mill. hours
10.9
5.8
7.4
Fatalities
Colleagues
Accidents
0
0
1
Contractors
Accidents
0
0
0
2022
2021
2021
Governance data
Unit
Q1
Q1
Full year
Representation of women in the Board (AGM elected members)
%
33
33
33
Board nationality - non-Danish (AGM elected members)
%
33
17
17
Independent directors (AGM elected members)
%
83
83
83
Attendance at Board meetings (All Board members)
%
97
100
100
Whistle-blower reporting
Cases
11
6
29
Definitions on page 31.
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Market overview
The European freight market was negatively impacted by
the war in Ukraine that started on 24 February 2022 as
eastbound volumes stalled. Although the Ukraine war and
expectations of rising inflation have increased uncertainty
about economic growth in 2022, demand for freight
services remain robust.
The 2022 outlook for Turkey’s GDP-growth has been
lowered in view of rising inflation and further depreciation
of the Turkish Lira (TRY) in the quarter. However,
industrial production in the country’s export sector
continued to grow. Activity levels also continued to grow
in Scandinavia and the UK as well as most parts of
Continental Europe.
European supply chains continue to be challenged by the
availability of haulage capacity and personnel. The
introduction of EU’s Mobility Package during Q1 2022 and
wage inflation are likely to put further pressure on the
supply of haulage capacity. There is thus a risk that supply
chain bottlenecks may occur again in 2022.
Travel restrictions related to Covid-19 were to a large
extent removed in most European travel markets towards
the end of Q1 2022. Ferry passenger numbers began to
recover during the quarter and normalised further in April
with Easter passenger ferry numbers approaching pre-
Covid-19 historic levels.
The main changes in average exchange rates in Q1 2022
vs Q1 2021 were depreciation of TRY/DKK by 43%,
appreciation of GBP/DKK by 5% and NOK/DKK by 4%.
Major events in Q1
Exposure and response to war in Ukraine
The war in Ukraine is expected to reduce freight volumes
in the Baltic Sea ferry network, particularly in the
Germany-Lithuania and Sweden-Lithuania corridors. In
addition, a large part of ICT Logistics’ revenue was related
to Russia and Ukraine. Assistance has been provided to
the 12 employees in Ukraine and their families to bring
them to safety and uphold their employment.
Employment has also been upheld for around 40
employees in Russia even though all activities in Russia
have been discontinued. DFDS stopped transporting
vehicles registered in Russia from the beginning of March
2022 ahead of the EU’s sanction that came into effect on
16 April 2022. Russian goods have been removed from
shops on our passenger ferries. ICT Logistics has provided
and continues to provide logistics support in Ukraine to
international relief organisations.
Channel market capacity changes
From 17 March 2022, a competitor deploying four ferries
between Dover and Calais suspended all sailings. Sailings
were partly resumed towards the end of April.
Baltic Sea route network boosted by new ferries
The freight capacity and passenger experience is being
boosted by deployment of two ferry new-buildings in
2022.
In late January 2022, the first of two combined freight and
passenger ferry newbuildings (ro-pax) was deployed on
the Karlshamn-Klaipeda route. The second ferry was
deployed on 29 April 2022. The new ferries can each carry
4,500 lane metres of freight and cars as well as 600
passengers. CO2 emissions per trailer are expected to be
lowered by more than 20% by the new ferries that comply
with the new design standards of EEDI (Energy Efficiency
Design Index).
Capacity was increased by one ferry on the Paldiski-
Kapellskär route following deployment of the new ferries.
Two other ferries previously deployed on Karlshamn-
Klaipeda were moved to other routes in the network.
Acquisition of ICT Logistics
The acquisition of ICT Logistics agreed on 15 September
2021 was approved by relevant competition authorities in
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January 2022. ICT Logistics provides transport solutions
between Scandinavia and Eastern Europe, particularly
Russia, Ukraine, Romania, Latvia, and Lithuania. The war in
Ukraine has reduced activity levels as operations were
stopped in Russia while activities in other regions are
being adapted to the new market circumstances. The
company had 80 employees and revenue of DKK 260m
in 2021.
Major events after Q1
Expansion of rail logistics
In May 2022, DFDS entered into an agreement to acquire
100% of primeRail, a German logistics company
specialised in rail transport solutions. The company is
located in Cologne with 14 employees.
primeRail has since June 2021 partnered with DFDS to
improve the efficiency and supply of sustainable solutions
to customers. The initial focus has been on rail solutions
between Trieste and European destinations. This focus will
now be widened to other parts of the route network.
Rail transport is one of the most environmentally friendly
transport modes with an average CO2 emission per ton-
kilometer (tkm) of 15.6 g / tkm compared to 139.8 g / tkm
for road transport (EEA: European Environment Agency).
Dividend
The Board of Directors’ proposal to distribute an ordinary
dividend of DKK 4.00 per share was approved by the
annual general meeting in March 2022 and subsequently
paid out. The intention of the Board of Directors remains
to be to distribute an extraordinary dividend of DKK 4.00
per share in August 2022 in accordance with the authority
delegated to it.
ESG actions and plans
This section provides an overview of ESG (Environment,
Social, Governance) actions and plans to supplement the
key figures reported on page 4.
Environment
DFDS’ Climate Action Plan covers short-term actions to
reduce emissions from existing assets (mainly ferries and
transport equipment), and transformative long-term
actions to de-carbonise operations.
Short-term actions and plans
In 2022, the following key initiatives are planned for
completion to lower emissions from the existing ferry
fleet:
• Testing of 100% biofuel on ferries is progressing and
expected to be introduced in 2022
• Application of anti-fouling hull paint to reduce friction
in the water and hence fuel consumption expected to
be completed on 18 ferries, of which 8 were initiated
or completed in Q1 2022
• Installation on 13 ferries of new injection systems to
optimise engine combustion and save fuel (PMI VIT)
• 13 other projects, including waste heat recovery,
excess energy management, and hull modifications.
Fuel and emission savings from the applications are
continuously documented and subsequently applied to
the rest of the fleet as appropriate. In Q1 2022, the CO2
emissions from ferries were 13.8 g/CO2/GT mile, a
reduction of 1.4% compared to 14.0 g/CO2/GT mile in Q1
2021. The improvement was primarily due to a positive
impact from speed reduction of chartered ferries.
For Logistics, the deployment plan is underway for the
first batch of 125 electric trucks ordered from Volvo,
including charging facilities, customer needs, and route
planning. Tests of solar powered reefer trailers are proving
successful and more such units will be added in the UK.
Long-term transformative actions and plans
Work continues to enable deployment of a green freight
ferry in the route network by 2025. The development of
‘green transport corridors’ are done in partnership with
stakeholders that includes companies in different parts of
the value chain - agricultural suppliers, food producers,
fuel suppliers, and logistics and transport providers. The
aim is to accelerate the green transition – from
incremental steps to full climate neutrality - by
knowledge sharing across sectors, efficient use of
resources, and large-scale implementation of de-
carbonisation initiatives.
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In Logistics, the use of hydrogen powered trucks are being
assessed with several manufacturers.
Social
Diversity & Inclusion
The total female representation in the workforce
decreased to 23% by 1 ppt compared to Q1 2021
primarily due to the consolidation of HSF Logistics Group
with a female gender ratio below DFDS. The office female
gender ratio of 43% was on level with 2021 and thus
above DFDS’ 30% target. The female gender ratio for non-
office employees remained below target at 12%, a level
that reflects the historic high male gender ratios in, for
example, port terminals and transport operations.
The senior management female gender ratio remained at
17% while the ratio for managers increased to 15% from
10% in 2021. The latter increase was mainly due to
structural changes related to furloughing that lowered the
female gender ratio in 2020 and 2021. The Q1 2022 ratio
thus equals the level pre-Covid-19.
Safety
For sea-based operations, the lost-time injury frequency
(LTIF) was reduced from 5.3 in Q1 2021 to 3.8 in Q1 2022,
which was just above the target level of 3.5.
For land-based operations, the (LTIF) increased from 5.8 in
Q1 2021 to 10.9 in Q1 2022. The increase mostly reflects
improved and more widespread reporting as well as
integration of former HSF entities into DFDS’ Health &
Safety reporting structure.
Responsible employer
To develop as a responsible employer, both internally and
through our value chain, new actions have been launched:
• Haulage Compliance program to ensure compliance
with EU Mobility Package. It aims to ensure that
logistics suppliers adhere to regulation describing
working conditions for EU truck drivers, including
minimum wages, working hours, and decent
accommodation during longer breaks
• DFDS’ new Labour Code of Conduct (LCoC) is set for
launch in Q2. The aim of the LCoC is to define a general
standard for working conditions with relation to
wages, leave, working hours, equality, harassment and
discrimination, and child and forced labour.
Governance
Implementation of the DFDS Data Ethics policy is
supported by awareness initiatives. New colleagues from
the HSF integration and new joiners must all receive GDPR
training. Cyper security awareness continues to be a high
priority.
The war in Ukraine has entailed increased focus on
monitoring of sanctions and intensified dialogue with
stakeholders.
Financial performance
Revenue
The Group’s Q1 revenue was DKK 5,725m, an increase of
51.9% compared to 2021.
Ferry Division’s Q1 revenue increased 29.9% to
DKK 3,369m reflecting a significant increase in passenger
revenue as volumes started to recover following easing of
Covid-19 travel restrictions. Moreover, the Oslo-
Frederikshavn-Copenhagen route was suspended in the
first half-year of 2021. Higher freight volumes and rates
increased revenue in primarily the North Sea and
Mediterranean business units. In addition, revenue from
bunker surcharges increased considerably due to higher oil
prices throughout the quarter.
Logistics Division’s Q1 revenue increased 86.9% to
DKK 2,666m. Around 70% of the increase was due to the
Revenue
DKK m
Q1 2022
Q1 2021
Change, %
Change
Ferry Division
3,369
2,594
29.9
775
Logistics Division
2,666
1,426
86.9
1,239
Non-allocated items
162
136
18.6
25
Eliminations
-472
-389
-21.1
-82
DFDS Group
5,725
3,768
51.9
1,957
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acquisitions of HSF Logistics Group and ICT Logistics.
Organic revenue growth for the existing activities was
almost 30% reflecting higher activity, including new
warehousing and customs activities, and price increases
across regions. The latter included surcharges for higher
fuel prices and the introduction of the EU Mobility
Package as well as increases to cover higher costs,
particularly for haulage providers.
Operating profit before depreciation (EBITDA) and
special items
The Group’s Q1 EBITDA increased 9% to DKK 822m driven
by higher freight earnings.
Ferry Division’s Q1 EBITDA decreased 7% to DKK 598m.
The EBITDA for freight ferry activities decreased 4% to
DKK 702m due to one-off income in Q1 2021 from
standby agreements related to Brexit in the North Sea and
Channel business units. The underlying earnings trend was
positive driven mainly by growth in the Mediterranean and
North Sea business units. Baltic Sea’s result was reduced
by the war in Ukraine and higher ferry costs.
The EBITDA for the passenger activities decreased 12% to
DKK -104m due to an EBITDA decrease in the Passenger
business unit of DKK 47m which offset higher earnings in
Channel. The decrease in Passenger was due to the re-
opening of Oslo-Frederikshavn-Copenhagen in a low
season market environment with passenger numbers still
recovering from Covid-19 The route was suspended in the
first half-year of 2021. The result of Passenger is expected
to improve as passenger volumes and revenue recover.
Operating profit before depreciation (EBITDA) & special items
DKK m
Q1 2022
Q1 2021
Change, %
Change
Ferry Division
598
641
-6.7
-43
Logistics Division
216
101
114.3
115
Non-allocated items
7
8
-14.0
-1
DFDS Group
822
750
9.5
71
EBITDA-margin, %
14.4
19.9
-27.9
-5.6
Associates and joint ventures, profits on disposals and depreciation
DKK m
Q1 2022
Q1 2021
Change, %
Change
EBITDA before special items
822
750
9.5
71
Associates and joint ventures
-4
-3
-27.6
-1
Profit on disposals
4
1
n.a.
4
Depreciation and impairment
-608
-470
-29.4
-138
EBIT before special items
214
278
-23.0
-64
0
200
400
600
800
1,000
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS
2020 2021 2022
Financial items
DKK m
Q1 2022
Q1 2021
Change, %
Change
Interests, net
-72
-70
-2.9
-2
Foreign exchange gains/losses, net
11
-3
n.a.
13
Other items, net
-6
-4
-52.9
-2
Total finance, net
-68
-77
11.8
9
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Logistics Division’s Q1 EBITDA more than doubled to
DKK 216m. This was driven by the acquisition of HSF
Logistics Group, included in the Cold Chain business unit,
and higher earnings for the Dry Goods business unit. In the
latter, most activities increased earnings driven by higher
activity and improved cost coverage.
Depreciation and operating profit (EBIT) before
special items
Depreciation in Q1 of DKK 608m increased 29% or
DKK 138m compared to 2021 of which around half of the
increase was due to the acquisition of HSF Logistics Group.
The other half of the increase was primarily related to
depreciation on additional chartered vessels. Depreciation
was also increased by new leased logistics warehouses.
The Group’s Q1 EBIT before special items decreased 23%
to DKK 214m following the higher depreciation cost.
Special items and operating profit (EBIT) after special
items
In Q1 2022, special items were a net income of DKK 2m.
The Group’s Q1 EBIT after special items decreased 19% to
DKK 216m.
Financial items
Total finance, net in Q1 was a cost of DKK 68m, a
decrease of DKK 9m compared to Q1 2021. The net
interest cost was on level with 2021 while the variance
for net currency adjustments was positive by DKK 13m.
Profit before special items and tax
The Q1 profit before special items and tax decreased 27%
to DKK 147m and the profit for the period of DKK 114m
was 34% below 2021.
Earnings per share
Q1 earnings per share (EPS) of DKK 1.94 was 33% below
Q1 2021.
Cash flow and investments
The Q1 cash flow from operating activities increased 60%
to DKK 858m due to the improved operating result and a
positive development in working capital.
Net investments in Q1 were a negative cash flow of
DKK 953m of which DKK 784m was related to ferry
investments that included a final payment of DKK 509m
for a newbuilding. In addition, DKK 155m was invested in
port terminals and cargo carrying equipment, including
tug-masters, trailers, and containers.
The Q1 free cash flow (FCFF) was DKK -163m and
DKK -500m adjusted for payment of lease liabilities
including interest.
The Q1 cash flow from financing activities was positive by
DKK 216m. This included a net cash inflow from loans of
DKK 812m and payment of lease liabilities of DKK 304m.
Invested capital and ROIC
Invested capital increased 18% to DKK 26.4bn at the end
of Q1 2022 compared to the same period in 2021. The
increase was mostly due to the addition of the invested
capital from the acquisition of HSF Logistics Group,
purchase of a ferry newbuilding as well as capitalisation
of additional ferry and logistics leases.
The return on invested capital, ROIC, for Q1 2022 (last
twelve months) was 4.5% before special items compared
to 5.2% for 2021.
Capital structure
At the end of Q1 2022 net-interest-bearing debt (NIBD)
was DKK 14.6bn, an increase of 28% compared to the end
of Q1 2021. The increase was primarily due to the
acquisition of HSF Logistics Group. Financial leverage, as
measured by the ratio of NIBD to EBITDA before special
items, was 4.0 for the last twelve months (LTM) compared
to 3.7 at year-end 2021. The ratio for LTM Q1 2022
includes a pro forma EBITDA for HSF Logistics Group for
the last twelve months.
Equity
Equity amounted to DKK 11,462m at the end of Q1 2022,
including non-controlling interests of DKK 110m. This was
an increase of 6% compared to the end of Q1 2021. Total
comprehensive income for Q1 2022 was DKK 165m.
Transactions with owners of DKK -256m included a
dividend payment of DKK 229m.
The equity ratio was 35% at the end of Q1 2022
compared to 39% at Q1 2021. The decrease was mainly
due to the consolidation of HSF Logistics Group.
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Outlook 2022
The outlook for 2022 builds on multiple assumptions that
may change significantly as the year progresses. The war
in Ukraine has an immediate negative impact on the Baltic
Sea ferry business unit and to a lesser extent on logistics
activities in the region. In addition, the war in Ukraine may
entail wider spill-over effects on, for example, European
growth in general and energy prices.
Key freight outlook assumptions for 2022
The following key freight ferry and logistics assumptions
were outlined in the annual report:
• Growth in UK and Mediterranean freight volumes
• Overcapacity in Channel market due to entry of a third
ferry operator
• Positive full-year impact of HSF acquisition
• Margin improvement for existing logistics activities
• Cost increase from EU Mobility Package.
Baltic ferry and logistics volumes were previously also
expected to grow but due to the war in Ukraine, volumes
are now expected to be lower than in 2021. The
deployment of two new combined freight and passenger
ferries is still expected to strengthen the customer
offering in 2022.
Freight flows may also in 2022 be impacted by supply
chain bottlenecks.
A Channel competitor’s temporary suspension of sailings
provided a short-term uplift in freight volumes.
Key passenger outlook assumptions for 2022
The following key passenger assumptions were outlined in
the annual report:
• Covid-19 reduced the passenger EBITDA by DKK 1bn in
2020, and last year remained on level with 2020
• Overcapacity in Channel market due to entry of a third
ferry operator
• UK duty-free sales to mitigate Channel overcapacity
somewhat.
It is now assumed that around 60% of the EBITDA
decrease will be regained in 2022 compared to previously
around 50%.
A Channel competitor’s temporary suspension of sailings
provided a short-term uplift in the number of passengers.
Revenue outlook
The revenue growth outlook is increased to around 30%
compared to 2021 due to significantly higher revenue
from oil surcharges as well as higher passenger revenue
(previously 23-27%).
Other main revenue growth drivers are the full-year
impact of the acquisition of the HSF Logistics Group and
the expected recovery in passenger volumes. In addition,
freight volumes are expected to grow in most markets in
2022.
Earnings outlook
Based on the above assumptions, the Group’s EBITDA
before special items is still expected to be within a range
of DKK 3.9-4.4bn (2021: DKK 3.4bn). See outlook table for
divisional split.
OUTLOOK 2022
DKK m
Outlook 2022
2021
Revenue growth
Around 30%*
17,869
EBITDA before special items
3,900-4,400
3,411
Per division:
Ferry Division
3,050-3,450
2,852
Logistics Division
900-1,000
593
Non-allocated items
-50
-35
Investments
-2,300
-3,210
Types:
Operating
-1,400
-975
Ferries: sale & purchase and newbuildings
-800
-490
Acquisitions
-100
-1,745
*Increased from previously 23-27%
2022
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Investments
The outlook for investments in 2022 of around DKK 2.3bn
is unchanged:
• One combined freight and passenger ferry newbuilding
and exercise of a purchase option to buy one freight
ferry: DKK 800m
• Dockings and ferry upgrades, including energy
efficiency projects: DKK 600m
• Port terminals and other equipment: DKK 300m
• Cargo carrying equipment and warehouses, mainly
related to Logistics Division: DKK 400m
• Other investments, including digital and the
acquisitions of ICT Logistics and primeRail: DKK 200m.
Capital structure
The financial leverage, as measured by the ratio between
NIBD and EBITDA, is expected to decrease from 4.0 at the
end of Q1 2022 towards the target range of 2.0-3.0 by
year-end 2022.
Various risks and uncertainties pertain
to the outlook
The most important among these are possible major
changes in the demand for ferry services – for 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 Turkey.
Demand can also be impacted by competitor actions, sup-
ply chain disruptions, and extraordinary events such as vi-
rus outbreaks and geopolitical instability. Covid-19 contin-
ues to constitute a risk, particularly for the passenger ferry
services.
The outlook can moreover be impacted by political changes,
first and foremost within the EU and Turkey. Brexit, the new
trade agreement between the EU and the UK, is yet to be
fully implemented and its possible consequences on trade
therefore still constitute 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 the outlook expectations.
2022
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First electric cold chain trailers introduced
Together with Danish Crown, three new cold chain trailers
powered by electricity was introduced in January 2022 to
transport perishable foods. The e-trailers emit no CO2 or
particle emissions and also generate less noise.
2022
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The division is organised in five
business units:
• North Sea
• Mediterranean
• Channel
• Baltic Sea
• Passenger
Q1 market, activity, and result trends
Total Q1 freight volumes increased 3.6% compared to Q1
2021. For the last twelve months, freight volumes
increased 5.3%.
Total Q1 passenger volumes increased 243.3% compared
to Q1 2021 and equalled 38.7% of volumes in Q1 2019.
For the last twelve months, passenger volumes increased
6.8%.
North Sea
Q1 freight volumes were up 4.5% driven by higher
volumes on all UK routes as the Brexit transition lowered
volumes in the first two months of 2021. Volumes
between Sweden and Belgium were just below last year
as supply chain bottlenecks continued to dampen
automotive volumes.
Q1 EBITDA increased 4% to DKK 314m as the higher
volumes and rate increases offset income from Brexit
standby agreements in 2021.
Mediterranean
Q1 freight volumes increased 14.5% reflecting continued
growth in Turkish exports to Europe supported by the
depreciation of the Turkish lira. Volumes were also
increased by the opening of a new route in Q1 2021
between Turkey and Spain. To accommodate volume
growth, the route network was expanded compared to Q1
2021 with three ferries to a total of 21.
Q1 EBITDA increased 18% to DKK 293m driven by the
higher volumes as well as improved results for the port
terminal and rail activities.
Channel
Q1 freight volumes increased 2.2% driven by higher
volumes on the Dover routes, partly due to a positive
impact from additional volumes related to a competitor’s
suspension of sailings from 17 March. . The number of
departures between Ireland and France was reduced due
to deployment of two ferries versus three in 2021. A third
Ferry Division
Ferry Division
2022
2021
2021-22
2021
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue
3,369
2,594
2,960
3,029
3,223
12,581
11,806
EBITDA before special items
598
641
766
704
741
2,810
2,852
Share of profit/loss of associates and
joint ventures
-4
-3
-2
-3
-4
-13
-13
Profit/loss on disposal of non-current assets, net
2
1
0
1
2
5
4
Depreciation and impairment
-445
-387
-420
-422
-455
-1,741
-1,684
EBIT before special items
151
251
343
281
284
1,060
1,160
EBIT margin before special items, %
4.5
9.7
11.6
9.3
8.8
8.4
9.8
Special items, net
0
0
20
0
-8
13
12
EBIT
151
251
364
281
277
1,072
1,172
Invested capital, average
20,780
20,299
20,668
20,539
20,371
20,621
20,442
ROIC before special items, %
-
-
-
-
-
4.7
5.3
Average number of employees
5,705
-
-
-
-
5,352
5,381
Lane metres, '000
10,617
10,246
11,078
10,602
10,918
43,215
42,844
Tons, '000
169
167
147
162
157
634
633
Passengers, '000
283
83
109
388
289
1,070
869
2022
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Q1 2022 interim report / p 14
ferry was again added to the route from the beginning of
May 2022.
Q1 passenger volumes were up 237.8%. Volumes
recovered through the quarter as travel restrictions were
gradually eased. The number of passengers was likewise
increased by a competitor’s suspension of sailings from 17
March. Duty-free sales increased average onboard sales
per passenger, including truck drivers.
Q1 EBITDA decreased 7% to DKK 69m as 2021 included
income from a Brexit standby agreement. The underlying
earnings trend was thus positive driven by the recovery in
passenger volumes and higher on board spending which
increased the result for passenger services. The freight
result was reduced by a suspension, for most of the
quarter, of the freight-only (ro-ro) route opened between
Calais and Sheerness last year.
Baltic Sea
Q1 freight volumes were down 9.5%. From the end of
February, the war in Ukraine reduced volumes, especially
between Germany and Lithuania, as the transport of
vehicles registered in Russia was stopped from the
beginning of March 2022. Lower capacity between Sweden
and Estonia, from two ferries in 2021 to one ferry in this
quarter, also reduced volumes.
Passenger volumes were on level with 2021 as fewer
passengers between Sweden and Estonia due to the
capacity reduction was offset by a higher number of
passengers on other routes.
The Baltic route network’s capacity was adapted
following the deployment of two combined freight and
passenger newbuildings (ro-pax) on Karlshamn-Klaipeda in
January and April, respectively. The two new ferries
replaced three ferries, one of which was moved to
Paldiski-Kapellskär to restore a two-ferry setup. Another
was moved to Rosslare-Dunkirk as mentioned above
under Channel. Capacity was reduced by one freight ferry
(ro-ro) on Kiel-Klaipeda due to the Ukraine war. These
changes made two freight ferries available for deployment
elsewhere in DFDS’ route network.
Q1 EBITDA dropped 38% to DKK 51m. This was partly due
to the war in Ukraine that reduced freight volumes. In
addition, ferry operating costs were increased by a higher
number of dockings requiring replacement ferries as well
as general cost increases.
Passenger
Passenger volumes increased to 116k from 5k in Q1 2021.
The increase was mainly driven by the return of
passengers to Oslo-Frederikshavn-Copenhagen as the
route was suspended in the first half of 2021 due to
Covid-19. The number of passengers between the UK and
the Netherlands also increased towards the end of the
quarter.
Q1 EBITDA decreased DKK 47m to DKK -147m. The
decrease was mainly due to the re-opening of Oslo-
Frederikshavn-Copenhagen in a low season market
environment with passenger numbers still recovering from
Covid-19. The route result is expected to improve as
passenger numbers recover. In addition, the net bunker
cost increased.
Non-allocated items
These items primarily include external charter activities.
Q1 EBITDA decreased 51% to DKK 18m.
2022
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Ferry Division
2022
2021
2021-22
2021
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
North Sea
Revenue
1,165
971
1,117
991
1,081
4,354
4,161
EBITDA before special items
314
301
378
284
325
1,300
1,287
EBIT before special items
159
150
229
142
169
699
690
Invested capital*
6,038
6,762
6,811
6,253
5,930
6,359
6,362
ROIC before special items, %
-
-
-
-
-
10.6
10.6
Lane metres freight, '000
3,510
3,358
3,609
3,362
3,439
13,921
13,769
Tons, '000
169
167
147
162
157
634
633
Mediterranean
Revenue
903
670
743
740
841
3,226
2,993
EBITDA before special items
293
248
257
276
297
1,123
1,078
EBIT before special items
151
155
154
160
166
631
635
Invested capital*
9,291
9,558
9,408
9,182
9,192
9,326
9,375
ROIC before special items, %
-
-
-
-
-
6.1
6.3
Lane metres freight, '000
1,363
1,191
1,265
1,229
1,349
5,206
5,034
Channel
Revenue
685
568
643
681
728
2,736
2,619
EBITDA before special items
69
74
104
78
102
352
358
EBIT before special items
-21
-16
7
-18
10
-21
-16
Invested capital*
2,172
1,701
2,250
2,133
2,040
2,059
1,939
ROIC before special items, %
-
-
-
-
-
-1.4
-1.2
Lane metres freight, '000
4,629
4,531
4,923
4,767
4,927
19,247
19,149
Passengers, '000
127
38
50
224
130
531
441
Baltic Sea
Revenue
334
306
361
382
333
1,410
1,381
EBITDA before special items
51
83
111
118
80
360
391
EBIT before special items
16
51
68
80
26
190
226
Invested capital*
2,250
1,525
1,320
1,689
1,620
1,681
1,600
ROIC before special items, %
-
-
-
-
-
11.2
14.0
Lane metres freight, '000
999
1,104
1,199
1,108
1,056
4,362
4,467
Passengers, '000
40
40
53
79
41
214
214
Passenger
Revenue
184
31
40
184
208
617
463
EBITDA before special items
-147
-100
-120
-85
-87
-439
-392
EBIT before special items
-168
-124
-147
-109
-108
-532
-488
Invested capital*
798
629
731
751
699
721
677
ROIC before special items, %
-
-
-
-
-
-73.9
-72.6
Lane metres freight, '000
114
61
82
136
147
479
425
Passengers, '000
116
5
6
84
118
325
214
Non-allocated items
Revenue
140
86
102
105
164
510
456
EBITDA before special items
18
36
36
34
25
113
131
EBIT before special items
14
35
33
25
22
94
115
*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.
2022
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The division is organised in two
business units:
• Dry Goods
• Cold Chain
Q1 market, activity and result trends
HSF Logistics Group was consolidated from 14 September
2021 in the Cold Chain business unit.
Dry Goods
Forwarding volumes increased in the Nordic region as well
as between Nordic and the UK, while Continent-UK
volumes were more subdued. Imbalances between
Sweden and the Continent were improved in the quarter.
Demand for contract logistics solutions continued to
increase with high utilisation of new warehousing facilities
in Sweden, the Netherlands, and the UK. The existing
Swedish contract logistics activities also saw high growth.
Q1 EBITDA increased 55% to DKK 109m as most activities
in the Nordic and Continent regions improved earnings
which were negatively impacted by the Brexit transition in
Q1 2021. The activities in Ireland and Northern Ireland
also improved earnings. The increases were driven by a
mix of higher activity, also from new warehousing and
customs activities, as well as improved cost coverage
from both higher rates and surcharges related to fuel and
the Mobility Package.
Cold Chain
The number of units transported in Q1 increased 53.6% as
volumes from HSF Logistics Group were included from the
beginning of the year. Activity levels in the Nordic and
Continent regions were overall in line with expectations
except for lower meat volumes in the Nijmegen facility
due to supply side market dynamics. The activity level for
the existing UK activities increased through the quarter
although Scottish aquaculture volumes were below last
year due to harvesting issues.
The integration of HSF Logistics Group is overall
progressing as planned. Commercial growth opportunities
are being explored, including growth of customs services,
and the first new contracts are signed. In operations, loads
have started to be shared to improve equipment and ferry
utilisation. Procurement and back-office savings are being
achieved, and the longer-term IT-integration is on track.
Q1 EBITDA more than tripled to DKK 107m from DKK 30m
in Q1 2021. The increase was driven by the addition of
HSF Logistics Group that overall performed slightly below
expectations due to the lower volumes in the Netherlands
and an initial negative impact from the Mobility Package
on the Polish based trucking operation. The result for the
existing UK activities was on level with last year apart
from the Scottish aquaculture activities.
Logistics Division
Logistics Division
2022
2021
2021-22
2021
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue
2,666
1,426
1,554
1,633
2,541
8,394
7,155
EBITDA before special items
216
101
126
155
211
708
593
Share of profit/loss of associates and
joint ventures
-1
0
0
0
0
-1
0
Profit/loss on disposal of non-current assets, net
2
0
1
0
-2
1
-1
Depreciation and impairment
-144
-62
-61
-73
-127
-404
-322
EBIT before special items
74
39
66
83
81
305
269
EBIT margin before special items, %
2.8
2.7
4.2
5.1
3.2
4
3.8
Special items, net
2
0
-19
25
-4
4
2
EBIT
77
39
47
109
77
309
271
Invested capital, average
4,418
1,469
1,497
2,720
4,091
3,158
2,520
ROIC before special items, %
-
-
-
-
-
7.3
8.6
Average number of employees
4,355
-
-
-
-
2,741
2,774
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Logistics Division
2022
2021
2021-22
2021
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full year
Dry Goods
Revenue
1,606
1,208
1,297
1,254
1,407
5,564
5,166
EBITDA before special items
109
70
83
93
66
308
312
EBIT before special items
44
23
38
44
20
145
125
Invested capital**
1,562
1,038
989
922
1,103
1,123
1,009
ROIC before special items, %
-
-
-
-
-
9.6
9.8
Cold Chain
Revenue
1,329
359
407
544
1,360
3,640
2,669
EBITDA before special items
107
31
43
63
145
350
281
EBIT before special items
30
16
28
39
62
159
145
Invested capital**
3,048
475
492
3,037
3,122
2,035
1,512
ROIC before special items, %
-
-
-
-
-
6.0
7.7
* The quarterly invested capital is shown as per the end of the period. For the full-year, the invested capital is shown as an average.
2022
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Management statement
Executive Board Torben Carlsen , C EO . Ka rina Deacon , CFO
Board of directors Clau s V. Hemmi ngsen , Chai r , Klaus N yborg , Vice Chair ,
2022
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2022
2021
2021-22
2021
DKK m
Note
Q1
Q1
LTM
Full year
Revenue
3)
Costs
Ferry and other ship operation and maintenance
-1,405
-699
-4,586
-3,880
Freight handling
-738
-575
-2,761
-2,598
Transport solutions
-1,439
-854
-4,478
-3,893
Employee costs
-1,075
-746
-3,773
-3,444
Costs of sales and administration
-246
-143
-746
-643
Operating profit before depreciation (EBITDA) and special items
Share of profit/loss of associates and joint ventures
-4
-3
-14
-13
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
-361
-300
-1,382
-1,322
Depreciation, other non-current assets
-246
-169
-843
-766
Operating profit (EBIT) before special items
Special items, net
4)
-10
Operating profit (EBIT)
Financial income
Financial costs
-83
-78
-315
-307
Profit before tax
Tax on profit
-34
-20
-108
-94
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
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2022
2021
2021-22
2021
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
Tax on items that will not be reclassified to the Income statement
-25
-25
Items that will not be reclassified subsequently to the Income statement
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
-8
-48
-56
Value adjustment transferred to financial costs
Value adjustment transferred to non-current tangible assets
-165
-139
Tax on items that may be reclassified to the Income statement
-1
-1
Foreign exchange adjustments, subsidiaries
-17
-5
Items that are or may be reclassified subsequently to the Income statement
-120
-124
Total other comprehensive income after tax
-5
-9
Total comprehensive income
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
Total comprehensive income
DFDS Group – Statement of Comprehensive income
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DFDS Group - Balance sheet
Assets
2022
2021
2021
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
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 classified as held for sale
Total current assets
Assets
Equity and liabilities
2022
2021
2021
DKK m
Q1
Q1
Full year
Share capital
Reserves
-347
-222
-396
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 2022
-366
-5
-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 financial costs
Value adjustment transferred to non-current tangible assets
Foreign exchange adjustments, subsidiaries
-17
-17
-17
Items that are or may subsequently be reclassified to the Income statement
-17
Total other comprehensive income after tax
-17
Total comprehensive income
-17
Transactions with owners
Acquisition, non-controlling interests
-1
Dividend paid
-229
-229
-229
Dividend on treasury shares
-5
Share-based payments
Purchase of treasury shares
-2
-30
-32
-32
Transactions with owners
-2
-19
-235
-256
-1
-256
Equity at 31 March 2022
-383
-28
DFDS Group - Statement of changes in equity 1 January - 31 March 2022
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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
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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2022
2021
2021-22
2021
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
-1
-12
-41
-51
Adjustments for non-cash operating items, etc.
Change in working capital
-200
Payment of pension liabilities and other provisions
-7
-7
-33
-33
Cash flow from operating activities, gross
Interest received, etc.
Interest paid, etc.
-78
-61
-318
-302
Taxes paid
-69
-45
-75
-52
Cash flow from operating activities, net
Investments in ferries including dockings, etc.*
-784
-296
-1,634
-1,145
Sale of ferries
Investments in other non-current tangible assets
-155
-45
-531
-421
Sale of other non-current tangible assets
Investments in non-current intangible assets
-14
-14
-62
-62
Acquisition of enterprises, associates, joint ventures, and activities
-35
-1,801
-1,765
Sale of shares in associated company
Other investing cash flows
-3
Cash flow to/from investing activities, net
-953
-347
-3,816
-3,210
Cash flow before financing activities, net
-237
-332
-1
Proceed from bank loans and loans secured by mortgage in ships
Repayment and instalments of bank loans and loans secured by mortgage in ships
-790
-66
-2,073
-1,349
Payment of lease liabilities
-304
-180
-958
-834
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares
-32
-107
-75
Cash received from exercise of share options
Other financing cash flows
-33
-33
Dividends paid to equity holders of DFDS A/S
-229
-229
Cash flow to/from financing activities, net
-309
-359
Net increase (decrease) in cash and cash equivalents
-20
-641
-360
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
Cash and cash equivalents at end of period **
* The cash flow for Full year 2021 and LTM 2021-22 includes an amount of DKK 19m related to a net settlement of a vessel swap where DFDS buys a vessel of DKK 332m, sells a vessel of DKK 165m, and settles a loan receivable of DKK 149m.
** At 31 March 2022 DKK 167m (31 March 2021: DKK 147m) of the cash was deposited on restricted bank accounts.
DFDS Group – Statement of cash flows
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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 2021 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 2022
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 and the current war in Ukraine certain significant estimates have been revisited in Q1
2022 compared to year-end 2021, particularly related to passenger traffic and DFDS’
activities in Russia and Ukraine. A review of the significant accounting estimates did not
give rise to a change in estimates.
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 and the war in Ukraine
Impairment testing is undertaken at year-end unless indications of impairment occur during
the year. In Q1 2022 Management has revisited forecasts for all CGUs and concludes that no
impairments nor reversals are necessary.
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Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1 2022
External revenue
3,074
2,648
3
5,725
Intragroup revenue
296
17
158
472
Total revenue
3,369
2,666
162
6,197
Operating profit (EBITDA) before special items
598
216
7
822
Operating profit (EBIT) before special items
151
74
-12
214
Operating profit after special items (EBIT)
151
77
-12
216
Invested capital, average
20,780
4,418
699
25,897
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
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Note 3 Revenue
Q1 2022
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
1,138
-
0
1,138
Mediterranean
898
-
0
898
English Channel
717
-
0
717
Baltic Sea
321
-
0
321
Continent
-
982
0
982
Nordic
-
1,082
0
1,082
UK/Ireland
-
584
0
584
Other
0
0
3
3
Total
3,074
2,648
3
5,725
Product and services
Seafreight and shipping logistics solutions
2,339
12
0
2,350
Transport solutions
7
2,479
0
2,485
Passenger seafare and on board sales
310
0
0
310
Terminal services
236
2
0
237
Charters
118
6
0
124
Agency and other revenue
64
150
3
218
Total
3,074
2,648
3
5,725
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 charaterised 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
163m (Q1 2021: DKK 34m).
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 124m (Q1 2021: DKK 69m).
Q1 2021
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North sea
826
-
0
826
Mediterranean
666
-
0
666
English Channel
571
-
0
571
Baltic sea
292
-
0
292
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
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Note 4 Special items
2022
2021
DKK m
Q1
Q1
Acquisition and integration planning costs relating to HSF Logistics Group
0
-10
ICT value adjustment, net
2
0
Special items, net
2
-10
Note 5 Acquisition of enterprises and sale of activities
2022
On 15 September 2021 DFDS Group entered into an agreement to acquire 80.1% of the
shares in ICT Logistics Group. The acquisition was approved by Danish merger authorities on
13 January 2022 and completion of the transaction was 19 January 2022. The purchase
price for the acquired shares amount to DKK 69m. Cash in the acquired company amounted
to DKK 33m. Accordingly the liquidity effect was DKK 35m.
The acquisition is made by DFDS A/S which already owned 19.9% of ICT Logistics Group. The
Group has in Q1 2022 revalued the existing ownership share of 19.9% to DKK 17m which
has resulted in a gain of DKK 9m.
2021
The purchase price allocation for HSF Group (acquired 14 September 2021) is still
preliminary, but unchanged compared to 31 December 2021. For further details of the
acquisition, refer to the annual report for 2021.
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 2022.
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 2022
Q1 2021
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
152
152
211
211
Securities (Level 3)
2
2
10
10
Financial liabilities
Derivatives (Level 2)
62
62
96
96
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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 2021. However, 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 2022. For further description reference is made to
note 1 Accounting policies.
The Parent Company’s revenue increased by DKK 441m, equivalent to 24% compared to Q1
2021. Operating profit before depreciation and special items (EBITDA) decreased by DKK
124m from DKK 408m in Q1 2021 to DKK 284m in Q1 2022, equivalent to an decrease of
30%.
Profit before tax decreased from DKK -37m in Q1 2021 to DKK -80m in Q1 2022.
The Parent Company’s net interest-bearing debt increased from DKK 6,264m at 31
December 2021 to DKK 7,171m at 31 March 2022.
2022
2021
2021-22
2021
DKK m
Q1
Q1
LTM
Full year
Income statement
Revenue
2,257
1,816
8,691
8,250
Operating profit before depreciation (EBITDA) and
special items
284
408
1,647
1,771
Operating profit (EBIT) before special items
-77
-18
18
77
Special items, net
9
-10
-37
-55
Operating profit (EBIT)
-68
-27
-19
22
Financial items, net
-12
-10
82
85
Profit before tax
-80
-37
63
106
Profit for the period
-79
-38
90
131
Assets
Non-current intangible assets
427
405
423
Non-current tangible assets
6,713
5,620
6,088
Right-of-use assets
1,236
1,117
1,209
Investments in affiliated companies, associates and
joint ventures
8,473
6,766
8,387
Non-current receivables from affiliated companies
35
260
47
Other non-current assets
151
129
70
Non-current assets
17,036
14,298
16,224
Current receivables from affiliated companies
776
732
712
Receivables from associates and joint ventures
24
24
23
Cash
389
912
475
Other current assets
1,430
1,549
1,195
Current assets
2,620
3,217
2,405
Assets
19,656
17,515
18,629
Equity and liabilities
Equity
9,085
9,425
9,355
Non-current liabilities
3,952
3,290
3,193
Current liabilities to affiliated companies
2,122
2,215
3,429
Other current liabilities
4,497
2,584
2,652
Current liabilities
6,619
4,799
6,082
Equity and liabilities
19,656
17,515
18,629
Equity ratio, %
46.2%
53.8%
50.2%
Net interest-bearing debt
7,171
4,583
6,264
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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
Number of ships
Owned and chartered ships, including slot charter and vessel sharing agreements
Roundings may in general cause variances in sums and percentages in this report.
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ESG definitions
Total number of days operated
Total number of deployment days for vessels in operation
CO2 emissions per GT nautical mile (Own fleet)
Emissions measured as gCO2 per gross tonnage nautical mile for vessels in operation (Own fleet)
CO2 emissions per GT nautical mile (Route network)
Emissions measured as gCO2 per gross tonnage nautical mile for vessels in operation (Route network)
Total fuel consumption (Route network)
Total consumption of heavy fuel oil (HFO) and marine gas oil (MGO) for vessels in 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 FTE workforce
Non-office based
Percentage of women of total number of non-office based employees
Office based
Percentage of women of total number of office based employees
Senior management
Percentage of women of total number of senior management positions defined as EVPs and VPs
Managers
Percentage of women of total number of management positions, excluding senior management, defined as positions with responsibility for at least one other
employee
Employees
Percentage of women of total number of employees, excluding senior management and managers
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
members)
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 reportings
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DFDS A/S
CVR 14 19 47 11
www.dfds.com
11 May 2022
Company announcement no.: 15/2022
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 more than
DKK 20bn.
To over 10,000 freight customers, we deliver high
performance and superior reliability through ferry & port
terminal services and transport & logistics solutions.
For millions of passengers, we provide safe overnight and
short sea ferry services.
Our 11,000 employees are located on ferries, port
terminals, distribution centres, and in offices across more
than 20 countries. DFDS was founded in 1866, is
headquartered in Copenhagen, and listed on NASDAQ
Copenhagen.