Q2 2022 interim report
STRONG GROWTH
•
Q2 EBITDA up 63% to DKK 1.46bn
•
Higher earnings across all business units
•
Passengers coming back faster than expected
•
Extraordinary dividend of DKK 4.00 per share confirmed
•
Full-year EBITDA outlook raised to DKK 4.4-4.8bn on
18 July 2022
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Q2 2022
• Logistics margins increased
• Operating cash flow of DKK 1.6bn
• Financial leverage improved to 3.3
(NIBD/EBITDA)
Outlook 2022, updated
• EBITDA range DKK 4.4-4.8bn
(18 July 2022)
• Revenue growth of around 40%
“We delivered an excellent Q2 result
based on solid efforts across the
organisation. We are on track to
continue to grow as we adapt to both
challenges and opportunities.”
Torben Carlsen, CEO
Group revenue increased 67% to DKK 7.0bn driven by the
ongoing recovery in the number of ferry passengers and
yields as well as price increases of freight ferry services
and logistics solutions to cover rising energy and other
costs. In addition, revenue was increased by the
acquisitions of HSF Logistics Group in September 2021
and ICT Logistics in January 2022.
EBITDA increased 63% to DKK 1,459m. The total freight
EBITDA for ferry and logistics activities before special
items increased 25% to DKK 1,204m driven by higher
earnings in all business units.
The total Q2 EBITDA for passenger activities in the
Channel, Baltic Sea, and Passenger business units
increased to DKK 255m from DKK -70m in 2021 as
earnings improved in all three business units on the back
of the ongoing recovery in passenger travel. The Q2
passenger EBITDA was 15% below 2019, the latest pre-
Covid-19 year.
Outlook 2022
On 18 July 2022, the outlook for EBITDA before special
items was raised to DKK 4.4-4.8bn following a stronger
than expected recovery in passenger earnings as well as
higher freight ferry volumes and earnings (previously
DKK 3.9-4.4bn, 2021: DKK 3.4bn). The revenue growth
outlook has been updated to around 40% (previously
around 35%) due to higher revenue from both passenger
and freight activities. The outlook is detailed on page 10.
Highlights Q2
1
6 August 2022. Conference call today at 10.00am CET
Access code:
69612122# 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
Q2
Q2
Change, %
LTM
LTM
Change, %
FY
Revenue
7,046
4,213
67.2
22,658
15,340
47.7
17,869
EBITDA before special items 1,459 897
62.6 4,044
3,263
23.9 3,411
EBIT before special items
826
394
109.9
1,681
1,349
24.6
1,313
Profit before tax and special items 745 315
136.3 1,410 1,035
36.2 1,035
Profit before tax
760
328
132.1
1,459
878
66.2
1,069
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2022 2021 2022 2021 2021-22 2021
DKK m
Q2
Q2
H1
H1
LTM
Full year
Income statement
Revenue 7,046
4,213
12,771
7,981
22,658
17,869
• Ferry Division
4,420
2,960
7,790
5,554
14,041
11,806
• Logistics Division
2,979
1,554
5,644
2,980
9,819
7,155
• Non-allocated items
153
136
315
273
568
526
• Eliminations
-507
-437
-978
-827
-1,770
-1,618
Operating profit before depreciation (EBITDA) and
special items
1,459
897
2,280
1,647
4,044
3,411
• Ferry Division
1,203
765
1,801
1,407
3,247
2,852
•
Logistics Division 274
126
491
227
857
593
• Non-allocated items
-18
6
-11
14
-60
-34
Profit/loss on disposal of non-current assets, net
4
1
8
2
9
2
Operating profit (EBIT) before special items 826
394
1,040
672
1,681
1,313
Special items, net
15
12
17
2
49
34
Operating profit (EBIT) 841
406
1,057
674
1,731
1,348
Financial items, net
-81
-78
-148
-155
-272
-278
Profit before tax 760
328
909
519
1,459
1,069
Profit for the period
704
306
819
479
1,316
976
Profit for the period excluding
non-controlling interest
700
301
812
468
1,301
958
Capital
Total assets
-
-
33,457
28,515
-
30,721
DFDS A/S' share of equity -
-
12,057
10,928
-
11,446
Equity
-
-
12,168
11,027
-
11,554
Net interest-bearing debt -
-
13,646
11,688
-
13,481
Invested capital, end of period
-
-
26,143
22,875
-
25,369
Invested capital, average 26,284
22,668
25,979
22,486
24,921
23,324
2022 2021 2022 2021 2021-22 2021
DKK m
Q2 Q2 H1 H1 LTM Full year
Cash flows
Cash flows from operating activities, before finan-
cial items and after tax
1,570
995
2,359
1,487
4,356
3,484
Cash flows from investing activities -558 -164 -1,511 -511 -4,210 -3,210
• Acquisition of enterprises and activities
-21
0
-56
0
-1,821
-1,765
•
Other investments, net -537 -164 -1,455 -511 -2,389 -1,444
Free cash flow
1,012
831
848
977
146
274
Repayment of lease liabilities and lease interest -253 -227 -589 -422 -1,096 -929
Adjusted free cash flow (FCFF)
758
604
259
554
-950
-655
Key operating and return ratios
Average number of employees (FTE) - - 11,171 8,120 9,458 8,874
Number of ships
-
-
78
81
-
80
Revenue growth (reported), % 67.2 50.6 60.0 20.7 26.8 27.9
EBITDA-margin before special items, %
20.7
21.3
17.9
20.6
17.8
19.1
Operating margin before special items, % 11.7 9.3 8.1 8.4 7.4 7.3
Revenue/invested capital average, times
-
-
-
-
0.9
0.8
Return on invested capital (ROIC), % - - - - 6.3 5.3
ROIC before special items, %
-
-
-
-
6.1
5.2
Return on equity, % - - - - 11.3 8.7
Key capital and per share ratios
Equity ratio, %
-
-
36.4
38.7
-
37.6
Financial leverage, times* - - 3.3 3.6 3.3 3.7
Earnings per share (EPS), DKK
12.23
5.24
14.17
8.15
22.70
16.69
Dividend paid per share, DKK 0.00 0.00 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
-
-
57,286
57,509
-
57,416
Share price, DKK - - 214.6 353.8 - 349.0
Market value
-
-
12,286
20,294
-
20,018
* Defined as “Net interest-bearing debt/EBITDA (LTM)”. The ratio includes a pro forma EBITDA for acquired companies.
Definitions on page 31.
Key figures
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*2021 full-year ESG data excludes HSF Logistics Group acquired in
September 2021.
ESG key figures
2022
2021
2022
2021
2021-22
2021
Environmental data
Unit Q2 Q2 H1 H1 LTM Full year*
Total number of days operated Days 5,843
5,694 11,713
11,451 23,459 23,197
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet) gCO2 12.6
13.0 12.9
13.1 12.9 13.0
CO2 emissions per GT nautical mile (Route network)
gCO2
13.1
13.6
13.4
13.6
13.5
13.6
Energy consumption
Total fuel consumption (Route network) Tonnes HFOe
214,116
198,058 414,312
361,980 824,070 771,738
Oil spills
Spills (>1 barrel) Number
0
0 0
0 0 0
2022 2021 2022 2021 2021-22 2021
Social data
Unit
Q2
Q2
H1
H1
LTM
Full year*
Representation of women
Total workforce:
%
-
-
24
24
-
24
•
Non-office based % -
- 13
12 - 13
• Office based % -
- 43
43 - 44
Senior management
%
-
-
15
17
-
17
Managers
%
-
-
15
10
-
14
Employees
%
-
-
25
26
-
27
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mill. hours
4.8
3.4
4.6
4.3
4.4
4.3
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mill. hours
6.0
5.0
8.3
5.8
8.9
7.4
Fatalities
Colleagues Accidents
0
1 0
1 0 1
Contractors
Accidents
0
0
0
0
0
0
2022 2021 2022 2021 2021-22 2021
Governance data
Unit Q2 Q2 H1 H1 LTM 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) % 100
100 98
100 99 100
Whistle-blower reporting
Cases
3
4
14
10
33
29
Definitions on page
32.
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Market overview
The European demand for freight services and solutions
remained robust in Q2. The war in Ukraine and rising
inflation have, however, increased uncertainty about
economic growth in the remainder of 2022.
European supply chains continue to be challenged by
shortages of haulage capacity and personnel. A backlog
has therefore accumulated and this is expected to support
activity demand should growth slow down later in the
year. The introduction of EU’s Mobility Package and wage
inflation has put pressure on the supply of haulage
capacity and bottlenecks may occur again in the
remainder of 2022.
Turkey’s economy continued its high growth in Q2 despite
rising inflation and further depreciation of the Turkish Lira
(TRY). Industrial production in the country’s export sector
continued to grow in the quarter. Activity levels also
continued to grow in Scandinavia and the UK as well as
most parts of Continental Europe.
Ferry passenger volumes recovered from travel
restrictions through the quarter across northern Europe.
During the Q3 2022 high season, many routes are
expected to reach volumes on level with or above 2019.
The recovery is supported by a rise in holiday travel by car
fueled by the raised prices and disruptions of air travel.
Ferry pricing was generally higher than in 2019
The main changes in average exchange rates in Q2 2022
vs Q2 2021 were depreciation of TRY/DKK by 40%,
appreciation of USD/DKK by 13%.
Major events in Q2
Response and exposure to war in Ukraine
As a consequence of the war in Ukraine, DFDS has
terminated all Russian activities. The transport of vehicles
registered in Russia was stopped from the beginning of
March 2022 ahead of the EU’s sanction that came into
effect on 16 April 2022. Russian goods were removed
from shops on passenger ferries. In July 2022, an
agreement to sell the logistics activities in Russia with no
material financial impact was entered into.
The war in Ukraine has reduced freight volumes in the
Baltic Sea ferry network, particularly in the Germany-
Lithuania and Sweden-Lithuania corridors. ICT Logistics
has successfully adapted activities away from Russia,
including logistics support in Ukraine to international relief
organisations, and is expected to achieve a full-year result
in line with the acquisition’s business plan.
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.
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 operational efficiency and the 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).
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Major events after Q2
New Head of Ferry Division appointed
On 6 July 2022, Mathieu Girardin was appointed Head of
Ferry Division, EVP, and member of the Executive
Management Team (EMT). He joins DFDS in October 2022.
Mathieu Girardin, a French national born in 1982, is
currently Senior Vice President at CMA CGM, one of the
world’s largest shipping and logistics companies, for Short
Sea Lines Europe and Containerships. He has held senior
management positions at CMA CGM since 2013, including
both operational and corporate responsibilities.
Mathieu Girardin succeeds Peder Gellert Pedersen, Head of
Ferry Division and EVP, who retired after 28 years with
DFDS on 1 August 2022.
Acquisition expands Irish logistics network
To further expand and develop the European logistics
offering, DFDS acquired 100% of the share capital of
Lucey Transport Logistics Ltd based in Dublin, Ireland.
Lucey Transport Logistics is an Irish provider of transport
and logistics solutions, primarily to consumer goods
companies. Door-door transports are provided for full- and
part-loads as well as distribution services. The logistics
solutions include warehousing, inventory management,
bonded storage, and product rework and labelling.
Solutions are supported by a distribution centre in Dublin
and regional warehousing facilities in key locations across
Ireland and Northern Ireland totalling 38k m2. Operations
also include 70 trucks and more than 400 trailers. Lucey
Transport Logistics had annual revenue of DKK 240m
(EUR 32m) and 240 employees in 2021.
The acquisition strengthens DFDS’ customer offering in the
region, including an opportunity to offer international
transports to Lucey Transport Logistics’ customers. In
addition, synergies are expected from mainly haulage
efficiency and equipment procurement.
The transaction is subject to approval by relevant
competition authorities.
Dividend
The Board of Directors has confirmed its decision, in
accordance with the authority delegated to it, to distri-
bute an extraordinary dividend of DKK 4.00 per share in
August 2022 as previously announced in connection with
the annual general meeting (AGM). In March 2022, an
ordinary dividend of DKK 4.00 per share was approved by
the AGM and distributed.
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 results
In Q2 2022, CO2 emissions were reduced on both own and
chartered vessels deployed across the route network. Own
fleet emissions were reduced 3% to 12,6 g/CO2/GT per
mile from 13.0 g/CO2/GT per mile in Q2 2021. Emissions of
the entire route network were reduced 4% to 13.1
g/CO2/GT per mile from 13.6 g/CO2/GT per mile in Q2
2021.
Actions are taken on an ongoing basis in the year to lower
emissions from the existing ferry fleet:
• Shore power installed on one freight ferry, three more
expected to be completed in 2022
• Testing of biofuel is progressing as planned and a first
sailing is expected in Q4 2022
• Implementation of Excess Energy Management system
completed on eight ferries
• Waste heat recovery installed on three ferries.
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Fuel and emission savings from the applications are
continuously documented and subsequently applied to
the rest of the fleet as appropriate.
The process to deploy 125 eTrucks by the end of 2023 is
underway, with the first batch of trucks destined for
Gothenburg in Q4 2022. The use of hydrogen powered
trucks is being assessed with several manufacturers.
Long-term transformative actions and plans
Projects to enable deployment of a green freight ferry in
the route network by 2025 continued in the quarter. In
addition, a project to explore retrofitting existing ferries to
sail on hydrogen was initiated with H2 Energy.
The project to develop ‘green transport corridors’
continued in partnership with stakeholders that include
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.
The de-carbonisation of logistics activities includes a
target of a 50% absolute reduction in emissions from
warehousing and road transportation by 2030. Reductions
of road emissions will be made by use of alternative fuels
and further electrification of the truck portfolio. By
investing in solar panels (photovoltaic systems), our
warehouses are expected to produce 10m Kwh of green
electricity per year by 2030.
Social
Diversity & Inclusion
The total female representation in the workforce of 24%
was on level with H1 2021 despite 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 increased to 13%.
The senior management female gender ratio decreased to
15% as senior management was expanded with male
managers. The ratio for managers increased to 15% from
10% in 2021 due to a return of female managers
following furloughing that lowered the female gender
ratio in 2020 and 2021.
Safety
For sea-based operations, the lost-time injury frequency
(LTIF) increased to 4.8 in Q2 2022 from 3.4 in Q2 2021.
The increase was due to minor injuries and timing
differences in the reporting between Q2 and Q1.
For land-based operations, the data quality of reporting
was improved and expanded from the beginning of 2022
as the land-based Health & Safety organisation was
strengthened. In combination with the addition of HSF
Logistics Group, LTIF therefore reported a large increase in
Q1 2022 to 10.9 from 5.8 in Q1 2021. In Q2 2022, LTIF
was reduced to 6.0 as increased focus on personal
attendance to own and colleagues’ safety improved
safety performance in both port terminal and logistics
locations.
Governance
The war in Ukraine has entailed increased focus on
monitoring of sanctions and intensified dialogue with
stakeholders.
Financial performance
Revenue
The Group’s Q2 revenue was DKK 7,046m, an increase of
67.2% compared to 2021.
The Group’s H1 revenue was DKK 12,771m, an increase of
60.0% compared to 2021.
Revenue
DKK m
Q2 2022 Q2 2021 Change, % Change
Ferry Division 4,420
2,960 49.3
1,460
Logistics Division
2,979
1,554
91.7
1,425
Non-allocated items 153
136 12.4
17
Eliminations
-507
-437
-16.0
-70
DFDS Group
7,046
4,213
67.2
2,833
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Ferry Division’s Q2 revenue increased 49.3% to
DKK 4,420m following a significant increase in passenger
revenue driven by the recovery from Covid-19 and higher
pricing. Higher freight volumes and rates increased
revenue in primarily the Mediterranean and North Sea
business units. In addition, revenue from bunker
surcharges increased considerably due to higher oil prices
throughout the quarter.
Logistics Division’s Q2 revenue increased 91.7% to
DKK 2,979m. Around 70% of the increase was due to the
acquisitions of HSF Logistics Group and ICT Logistics.
Organic revenue growth for the existing activities was
27% reflecting higher activity, including new warehousing
and customs activities, and price increases across regions.
The latter included surcharges for higher fuel prices and
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 Q2 EBITDA increased 63% or DKK 562m to
DKK 1,459m driven by both higher freight and passenger
earnings.
The Group’s H1 EBITDA increased 38% to DKK 2,280m
while the EBITDA for the last twelve months was
DKK 4,044m.
Ferry Division’s Q2 EBITDA increased 57% or DKK 437m to
DKK 1,203m. The EBITDA for freight ferry activities
Operating profit before depreciation (EBITDA) & special items
DKK m
Q2 2022 Q2 2021 Change, % Change
Ferry Division 1,203 766
57.1 437
Logistics Division
274
126
117.8
148
Non-allocated items -18 6
n.a. -24
DFDS Group 1,459
897
62.6
562
EBITDA-margin, %
20.7
21.3
n.a.
-0.6
Associates and joint ventures, profits on disposals and depreciation
DKK m
Q2 2022 Q2 2021 Change, % Change
EBITDA before special items 1,459 897
62.6 562
Associates and joint ventures
-2
-2
34.2
1
Profit on disposals 4 1
n.a. 3
Depreciation and impairment
-635
-502
-26.5
-133
EBIT before special items 826
394
109.9
432
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS
2020 2021 2022
Financial items
DKK m
Q2 2022 Q2 2021 Change, % Change
Interests, net
-81
-72
-12.6
-9
Foreign exchange gains/losses, net 7 -2
n.a. 10
Other items, net
-7
-4
-75.5
-3
Total finance, net
-81
-78
-3.2
-3
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increased 13% or DKK 112m to DKK 948m driven mostly
by the Mediterranean and North Sea business units.
The total EBITDA for passenger activities across the
network increased DKK 325m to DKK 255m from
DKK -70m in 2021. The increase was driven by the
recovery of passenger travel from Covid-19.
Logistics Division’s Q2 EBITDA more than doubled to
DKK 274m following the acquisition of HSF Logistics
Group, included in the Cold Chain business unit. In addition,
cost coverage was improved, and hence margins, for the
existing Dry Goods business unit.
Depreciation and operating profit (EBIT) before
special items
Depreciation in Q2 of DKK 635m was slightly up compared
to the previous quarter but increased 26% or DKK 133m
compared to 2021. 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 and new leased logistics
warehouses.
The Group’s Q2 EBIT before special items increased 110%
to DKK 826m and for H1 EBIT before special items
increased 55% to DKK 1,040m.
Special items and operating profit (EBIT) after
special items
In Q2 2022, special items were a net income of DKK 15m
and for H1 special items were a net income of DKK 17m.
The Group’s Q2 EBIT after special items increased 107% to
DKK 841m and for H1 EBIT after special items increased
57% to DKK 1,057m.
Financial items
Total finance, net in Q2 was a cost of DKK 81m, an
increase of DKK 3m compared to Q2 2021. The net
interest cost was DKK 9m above 2021 while the variance
for net currency adjustments was positive by DKK 10m.
Profit before special items and tax
The Q2 profit before special items and tax increased 132%
to DKK 760m and the profit for the period of DKK 704m
was 130% above 2021. For H1, the profit before special
items and tax increased 75% to DKK 909m and the profit
for the period was DKK 819m.
Earnings per share
Q2 earnings per share (EPS) increased 133% to DKK 12.23
and for H1 EPS increased 74% to DKK 14.17.
Cash flow and investments
The Q2 cash flow from operating activities increased 56%
to DKK 1,565m compared to Q2 2021 due to the
improved operating result. The Q2 2022 cash flow
included a positive cash flow of DKK 99m from a
reduction of working capital.
Net investments in Q2 were a negative cash flow of
DKK 558m of which DKK 263m was related to ferry
upgrades and dockings, and DKK 276m was invested in
port terminals, logistics warehousing, and cargo carrying
equipment, including tug-masters, trailers, and containers.
The Q2 free cash flow (FCFF) was DKK 1,012m and
DKK 758m adjusted for payment of lease liabilities
including interest compared to DKK 604m in Q2 2021.
The Q2 cash flow from financing activities was negative
by DKK 280m, including a net outflow from loans of
DKK 62m and payment of lease liabilities of DKK 220m.
The net increase in cash was DKK 647m and at the end of
Q2 cash amounted to DKK 1,528m.
For H1, the cash flow from operating activities was
DKK 2,280m and the free cash flow (FCFF) before
acquisitions was DKK 904m and DKK 315m adjusted for
payment of lease liabilities including interest. Net
investments in H1 was an outflow of DKK 1,511bn
including acquisitions. The cash flow from financing
activities was a net outflow of DKK 64m bringing the net
cash flow for H1 to a plus of DKK 627m.
Invested capital and ROIC
Invested capital increased 14% to DKK 26.1bn at the end
of Q2 2022 compared to the same period in 2021. The
increase was mostly due to the acquisition of HSF
Logistics Group, completion of ferry newbuildings as well
as capitalisation of additional ferry and logistics leases.
The return on invested capital, ROIC, for Q2 2022 (last
twelve months) was 6.1% before special items compared
to 5.2% for the full-year 2021.
Capital structure
At the end of Q2 2022 net-interest-bearing debt (NIBD)
was DKK 13.6bn, an increase of 17% compared to the end
2022
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Q2 2022 interim report / p
10
of Q2 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 for the last twelve months (LTM), was 3.3 at the
end of Q2 compared to 3.7 at year-end 2021 and 3.6 at
the end of Q2 2021. The ratio includes a pro forma LTM
EBITDA for acquired companies.
Equity
Equity amounted to DKK 12,168m at the end of Q2 2022,
including non-controlling interests of DKK 111m. This was
an increase of 10% compared to the end of Q2 2021.
Total comprehensive income for H1 2022 was DKK 866m.
Transactions with owners of DKK -252m included a
dividend payment of DKK 229m.
The equity ratio was 36% at the end of Q2 2022
compared to 39% at Q2 2021.
Outlook 2022
Demand for freight and passenger services is expected to
remain robust in the next couple of months. This demand
may, however, be dampened later in 2022 by a slowdown
driven by developments in the macro environment and by
supply chain constraints. Uncertainty remains elevated
and significant changes to the outlook may therefore still
occur.
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 volumes 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 the 2021 EBITDA 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 80% of the EBITDA
decrease will be regained in 2022 compared to previously
around 60%.
OUTLOOK 2022
DKK m Outlook 2022 Previous outlook 2022 2021
Revenue growth
Around 40%
Around 35%
17,869
EBITDA before special items 4,400-4,800
3,900-4,400 3,411
Per division:
Ferry Division 3,500-3,800
3,050-3,450 2,852
Logistics Division
950-1,050
900-1,000
593
Non-allocated items -50
-50 -35
Investments -2,700 -2,300 -3,210
Types:
Operating
-1,600
-1,400
-975
Ferries: sale & purchase and newbuildings -800 -800 -490
Acquisitions -300
-100
-1,745
2022
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Ferry
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Q2 2022 interim report / p
11
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 40%
compared to 2021 due to significantly higher revenue
from oil surcharges as well as higher passenger revenue
(previously around 35%).
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 expected to be within a range of
DKK 4.4-4.8bn (previously DKK 3.9-4.4bn, 2021:
DKK 3.4bn). See outlook table for divisional split.
Investments
The outlook for investments in 2022 has been increased
to around DKK 2.7bn (previously DKK 2.3bn) due to the
acquisition of an Irish logistics company and additional
ferry and logistics investments:
• One combined freight and passenger ferry newbuilding
and exercise of a purchase option to buy one freight
ferry: DKK 800m
• Ferry operating: DKK 1,100m
• Logistics operating: DKK 500m
• Acquisitions: DKK 300m.
Capital structure
The financial leverage, as measured by the ratio between
NIBD and EBITDA, is expected to decrease further from 3.3
LTM Q2 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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Ferry
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Q2 2022 interim report / p
13
The division is organised in five
business units:
• North Sea
• Mediterranean
• Channel
• Baltic Sea
• Passenger
Q2 market, activity, and result trends
Total Q2 freight volumes increased 4.1% compared to Q2
2021. For the last twelve months, freight volumes
increased 0.2%.
Total Q2 passenger volumes increased almost tenfold to
984k from 109k in Q2 2021. The Q2 2022 volumes
equalled 71% of volumes in Q2 2019. For the last twelve
months, passenger volumes increased 103.4%.
North Sea
Q2 freight volumes were 1.0% below 2021 mainly due to
a continued dampening of automotive volumes by supply
chain bottlenecks and lower capacity due to extended
dockings, mainly between the Netherlands and the UK.
Q2 EBITDA increased 21% to DKK 457m driven by revenue
growth from rate increases and standage fees in port
terminals as well as lower operating costs.
Mediterranean
Q2 freight volumes increased 12.7% reflecting continued
growth in Turkish exports to Europe supported by an
increase of capacity on the routes between Turkey and
France as well as between southern Turkey and Italy. In
total, the route network was expanded with three ferries
compared to Q2 2021 to a total of 21.
Q2 EBITDA increased 33% to DKK 341m driven by the
higher volumes as well as improved results for the port
terminal and rail activities, including the addition of
primeRail.
Channel
Q2 freight volumes increased 9.9% driven by higher
volumes on all corridors. Volumes on the Dover Strait
were boosted by a competitor’s suspension of sailings in
April and most of May. Demand between Ireland and
France continued to be robust.
Passenger volumes recovered through Q2, as travel
restrictions were abolished, increasing to 629k from 50k in
Q2 2021. The number of passengers was likewise boosted
by a competitor’s suspension of sailings on the Dover
Ferry Division
Ferry Division
2022 2022 2021 2021 2021-22 2021
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue 3,369 4,420
7,790 5,554 2,594 2,960 3,029 3,223 14,041 11,806
EBITDA before special items
598
1,203
1,801
1,407
641
766
704
741
3,247
2,852
Share of profit/loss of associates and
joint ventures
-4
-1
-5
-5
-3
-2
-3
-4
-12
-13
Profit/loss on disposal of non-current assets, net 2 0
2 1 1 0 1 2 5 4
Depreciation and impairment -445 -466
-911 -808 -387 -420 -422 -455 -1,787 -1,684
EBIT before special items
151
735
887
595
251
343
281
284
1,452
1,160
EBIT margin before special items, %
4.5
16.6
11.4
10.7
9.7
11.6
9.3
8.8
10.3
9.8
Special items, net
0
15
15
20
0
20
0
-8
7
12
EBIT
151
750
902
615
251
364
281
277
1,459
1,172
Invested capital, average 20,780 20,796
20,709 20,490 20,299 20,668 20,539 20,371 20,641 20,442
ROIC before special items, % - -
- - - - - - 6.6 5.3
Average number of employees
-
-
5,913
5,223
-
-
-
-
5,504
5,381
Lane metres, '000
10,617
11,523
22,140
21,324
10,246
11,078
10,602
10,918
43,660
42,844
Tons, '000
169
149
318
314
167
147
162
157
637
633
Passengers, '000
283
984
1,267
192
83
109
388
289
1,944
869
2022
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Q2 2022 interim report / p
14
Strait, re above. The number of passengers amounted to
67% of passengers in Q2 2019. Duty-free sales was
increased by the higher number of passengers compared
to 2021.
Q2 EBITDA almost doubled to DKK 205m driven by the
recovery in passenger volumes and onboard spending. The
passenger result was above Q2 2019. The freight result
was negatively impacted by higher operating costs,
including a continued ramp-up of the freight-only (ro-ro)
route opened between Calais and Sheerness, and the loss
of income from a Brexit standby agreement in 2021.
Baltic Sea
Q2 freight volumes were down 17.8% as the war in
Ukraine reduced volumes, especially between Germany
and Lithuania. Reduced sailing frequency between Sweden
and Estonia also reduced volumes.
Passenger volumes were up 14.1% as holiday travel by
car increased due to raised prices and disruptions in airline
travel.
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. Capacity was reduced by
one freight ferry (ro-ro) on Kiel-Klaipeda due to the
Ukraine war. These changes freed up two freight ferries
that have been chartered out.
Q2 EBITDA increased 7% to DKK 119m as the reduced
freight volumes were offset by lower operating costs and
higher passenger earnings.
Passenger
Passenger volumes recovered through Q2, as travel
restrictions were abolished, increasing to 294k from 6k in
Q2 2021. In addition, Oslo-Frederikshavn-Copenhagen was
suspended in most of Q2 2021 due to Covid-19. The
number of passengers amounted to 76% of passengers in
Q2 2019.
Q2 EBITDA increased DKK 184m to DKK 64m from
DKK -120m in Q2 2021. The increase was driven by the
recovery in passenger volumes as well as an increase in
average revenue per pax which partly offset an increase in
the net bunker cost.
Non-allocated items
These items primarily include external charter activities.
Q2 EBITDA decreased 53% to DKK 17m.
2022
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Q2 2022 interim report / p
15
Ferry Division
2022
2022
2021
2021
2021-22
2021
DKK m Q1 Q2 H1 H1 Q1 Q2 Q3 Q4 LTM Full year
North Sea
Revenue 1,165 1,372 2,537 2,088
971
1,117 991
1,081
4,609 4,161
EBITDA before special items
314
457
770
679
301
378
284
325
1,379
1,287
EBIT before special items 159 308 467 379
150
229 142
169
778 690
Invested capital*
6,038
5,971
5,980
6,542
6,762
6,811
6,253
5,930
6,201
6,362
ROIC before special items, % - - - -
-
- -
-
12.3 10.6
Lane metres freight, '000
3,510
3,574
7,084
6,967
3,358
3,609
3,362
3,439
13,886
13,769
Tons, '000 169 149 318 314
167
147 162
157
637 633
Mediterranean
Revenue
903
1,101
2,004
1,413
670
743
740
841
3,584
2,993
EBITDA before special items 293 341 634 505
248
257 276
297
1,207 1,078
EBIT before special items
151
196
347
309
155
154
160
166
673
635
Invested capital* 9,291 9,247 9,244 9,500
9,558
9,408 9,182
9,192
9,264 9,375
ROIC before special items, %
-
-
-
-
-
-
-
-
6.5
6.3
Lane metres freight, '000 1,363 1,426 2,789 2,456
1,191
1,265 1,229
1,349
5,367 5,034
Channel
Revenue
685
1,074
1,759
1,211
568
643
681
728
3,167
2,619
EBITDA before special items 69 205 274 178
74
104 78
102
454 358
EBIT before special items
-21
100
79
-9
-16
7
-18
10
72
-16
Invested capital* 2,172 2,426 2,213 1,841
1,701
2,250 2,133
2,040
2,204 1,939
ROIC before special items, %
-
-
-
-
-
-
-
-
2.9
-1.2
Lane metres freight, '000 4,629 5,410 10,039 9,454
4,531
4,923 4,767
4,927
19,734 19,149
Passengers, '000
127
629
756
87
38
50
224
130
1,110
441
Baltic Sea
Revenue 334 412 746 667
306
361 382
333
1,461 1,381
EBITDA before special items
51
119
170
194
83
111
118
80
368
391
EBIT before special items 16 86 101 120
51
68 80
26
207 226
Invested capital*
2,250
2,515
2,128
1,563
1,525
1,320
1,689
1,620
1,879
1,600
ROIC before special items, % - - - -
-
- -
-
10.9 14.0
Lane metres freight, '000
999
986
1,985
2,303
1,104
1,199
1,108
1,056
4,149
4,467
Passengers, '000 40 61 101 94
40
53 79
41
222 214
Passenger
Revenue
184
446
630
71
31
40
184
208
1,022
463
EBITDA before special items -147 64 -83 -220
-100
-120 -85
-87
-255 -392
EBIT before special items
-168
34
-134
-272
-124
-147
-109
-108
-350
-488
Invested capital* 798 859 785 645
629
731 751
699
767 677
ROIC before special items, %
-
-
-
-
-
-
-
-
-46.0
-72.6
Lane metres freight, '000 114 127 241 143
61
82 136
147
524 425
Passengers, '000
116
294
410
11
5
6
84
118
612
214
Non-allocated items
Revenue 140 76 216 188
86
102 105
164
485 456
EBITDA before special items
18
17
34
72
36
36
34
25
94
131
EBIT before special items 14 12 26 68
35
33 25
22
74 115
*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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Ferry
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Financials
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Q2 2022 interim report / p
16
The division is organised in two
business units:
• Dry Goods
• Cold Chain
Q2 market, activity and result trends
HSF Logistics Group was consolidated from 14 September
2021 in the Cold Chain business unit.
Dry Goods
Forwarding volumes in most corridors were below or on
level with last year as shortages of staff and equipment
reduced transport capacity. Demand for contract logistics
solutions continued at a high level with increasing
utilisation of new warehousing facilities in Sweden, the
Netherlands, and the UK. The existing Swedish and Dutch
contract logistics solutions also saw high growth.
Q2 EBITDA increased 76% to DKK 147m as most activities
in the Nordic and Continent regions improved earnings
driven by a mix of higher activity, also from new
warehousing and customs activities, and improved cost
coverage from both higher rates as well as surcharges
related to fuel and the Mobility Package. Results for the
UK region was held back by higher operating costs,
especially for haulage.
Cold Chain
The addition of HSF Logistics Group more than tripled
revenue compared to Q2 2021. Nordic and German
activity levels were stable or increasing in the quarter. The
Dutch activities continued to face some headwind from
meat supply disruptions due to the war in Ukraine.
Moreover, meat producers have increased focus on sales
within EU as Brexit has increased complexity of UK sales.
Customer rental of reusable packaging was stable. The
activity level for the existing Cold Chain activities was
overall below last year mainly due to lower Scottish
aquaculture volumes while airline catering activity
increased.
The integration of HSF Logistics Group is overall on track
with both commercial and operational synergies in line
with expectations.
Q2 EBITDA tripled to DKK 127m from DKK 43m in Q2
2021 driven by the addition of HSF Logistics Group that
overall performed in line with expectations. The result for
the existing UK activities was below last year due to a mix
of lower volumes and lagging cost recovery.
Logistics Division
Logistics Division
2022 2022 2021 2021 2021-22 2021
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
Revenue 2,666
2,979 5,644
2,980
1,426 1,554
1,633
2,541 9,819
7,155
EBITDA before special items
216
274
491
227
101
126
155
211
857
593
Share of profit/loss of associates and
joint ventures
-1
0
-1
0
0
0
0
0
-1
0
Profit/loss on disposal of non-current assets, net 2
4 6
1
0
1
0
-2 4
-1
Depreciation and impairment
-144
-147
-291
-123
-62
-61
-73
-127
-490
-322
EBIT before special items 74
131 205
105
39 66
83
81 370
269
EBIT margin before special items, %
2.8
4.4
3.6
3.5
2.7
4.2
5.1
3.2
3.8
3.8
Special items, net 2
0 2
-19
0
-19
25
-4 24
2
EBIT
77
131
207
85
39
47
109
77
393
271
Invested capital, average 4,418
4,676 4,525
1,473
1,469 1,497
2,720
4,091 3,803
2,520
ROIC before special items, %
-
-
-
-
-
-
-
-
7.6
8.6
Average number of employees -
- 4,463
2,196
- -
-
- 3,201
2,774
2022
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Logistics Division
2022 2022 2021 2021 2021-22 2021
DKK m
Q1
Q2
H1
H1
Q1
Q2
Q3
Q4
LTM
Full year
Dry Goods
Revenue
1,606
1,809
3,415
2,504
1,208
1,297
1,254
1,407
6,076
5,166
EBITDA before special items 109 147
256 154 70 83 93 66 415 312
EBIT before special items
44
77
121
61
23
38
44
20
185
125
Invested capital* 1,562 1,682
1,449 1,006 1,038 989 922 1,103 1,252 1,009
ROIC before special items, %
-
-
-
-
-
-
-
-
11.9
9.8
Cold Chain
Revenue
1,329
1,446
2,775
765
359
407
544
1,360
4,679
2,669
EBITDA before special items 107 127
234 73 31 43 63 145 442 281
EBIT before special items
30
54
84
44
16
28
39
62
184
145
Invested capital* 3,048 3,059
3,076 467 475 492 3,037 3,122 2,552 1,512
ROIC before special items, %
-
-
-
-
-
-
-
-
5.4
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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Q2 2022 interim report / p
18
Management statement
Executive Board
Board of directors
2022
Management review
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Q2 2022 interim report / p
19
2022
2021
2022
2021
2021-22
2021
DKK m Note Q2 Q2 H1 H1 LTM Full year
Revenue 3)
Costs
Ferry and other ship operation and maintenance
-1,698 -845
-3,103 -1,544 -5,439
-3,880
Freight handling
-840
-675
-1,578
-1,249
-2,927
-2,598
Transport solutions
-1,610 -856
-3,050 -1,710 -5,233
-3,893
Employee costs
-1,184
-789
-2,259
-1,535
-4,168
-3,444
Costs of sales and administration
-254 -152
-500 -295 -848
-643
Operating profit before depreciation (EBITDA) and special items
Share of profit/loss of associates and joint ventures
-2 -2
-6 -6 -13
-13
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
-380 -330
-742 -630 -1,433
-1,322
Depreciation, other non-current assets
-254
-172
-501
-341
-925
-766
Operating profit (EBIT) before special items
Special items, net 4)
Operating profit (EBIT)
Financial income
Financial costs
-93
-79
-176
-157
-332
-307
Profit before tax
Tax on profit
-56 -21
-90
-41 -143
-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
2022
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2022
2021
2022
2021
2021-22
2021
DKK m Q2 Q2 H1 H1 LTM Full year
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations
Tax on items that will not be reclassified to the Income statement 0 0
-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 0 -13
-56
Value adjustment transferred to financial costs
-10
-6
Value adjustment transferred to non-current tangible assets 0 -65
-31 -101
-139
Tax on items that may be reclassified to the Income statement
-12
-1
-12
-1
-13
-1
Foreign exchange adjustments, subsidiaries -71 10
-88
Items that are or may be reclassified subsequently to the Income statement
-4
-75
-28
-48
-124
Total other comprehensive income after tax
-4
-75
-28
-9
Total comprehensive income 701
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests 4 6
Total comprehensive income
DFDS Group – Statement of Comprehensive income
2022
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Q2 2022 interim report / p
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DFDS Group - Balance sheet
Assets
2022
2021
2021
DKK m
H1
H1 Full year
Goodwill
Other non-current intangible assets
Software
Development projects in progress
Non-current intangible assets
Land and buildings
Terminals
Ferries and other ships
Equipment, etc.
Assets under construction and prepayments
Right-of-use assets
Non-current tangible assets
Investments in associates, joint ventures and securities
Receivables
Prepaid costs
Deferred tax
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 H1 H1 Full year
Share capital 1,173 1,173
Reserves
-339
-301
-396
Retained earnings 10,989 10,056
Proposed dividends
Equity attributable to equity holders of DFDS A/S 12,057
Non-controlling interests
Equity
Interest-bearing liabilities
Lease liabilities 3,269 2,892
Deferred tax
Pension and jubilee liabilities 80 196
Other provisions
Derivative financial instruments 28 106
Non-current liabilities
Interest-bearing liabilities
Lease liabilities 723 665
Trade payables
Payables to associates and joint ventures 17 51
Other provisions
Corporation tax 141 54
Other payables
Derivative financial instruments 78 3
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 1,173
-366 -5
-25 10,435
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
Tax on items that will be reclassified to the Income statement
-12
-12
-12
Foreign exchange adjustments, subsidiaries
-88
-88
-88
Items that are or may subsequently be reclassified to the Income statement 0
-88 147
-12
Total other comprehensive income after tax
-88
-12
Total comprehensive income
-88
Transactions with owners
Acquisition, non-controlling interests
-1
Dividend paid
-229
-229
-229
Dividend paid, non-controlling interests
-3
-3
Dividend on treasury shares
-5 0
Proposed extraordinary dividend
-235
Share-based payments
Purchase of treasury shares
-2
-30
-32
-32
Transactions with owners 0
-2
-246
-248
-4
-252
Equity at 30 June 2022 1,173
-454 143
-28
DFDS Group - Statement of changes in equity 1 January - 30 June 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
-21
-21
-21
Value adjustment transferred to financial costs
-6
-6
-6
Value adjustment transferred to non-current tangible assets
-31
-31
-31
Tax on items that will be reclassified to the Income statement
-1
-1
-1
Foreign exchange adjustments, subsidiaries
Items that are or may subsequently be reclassified to the Income statement 0
-1
-28
-28
Total other comprehensive income after tax 0
-1
-28
-28
Total comprehensive income
-54
Transactions with owners
Share-based payments
Purchase of treasury shares
-4 -71
-75
-75
Cash from sale of treasury shares related to exercise of share options
Transactions with owners
-23
-23
-23
Equity at 30 June 2021
-368
-25
DFDS Group - Statement of changes in equity 1 January - 30 June 2021
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2022
2021
2022
2021
2021-22
2021
DKK m Q2 Q2 H1 H1
LTM Full year
Operating profit before depreciation (EBITDA) and special items
Cash flow effect from special items related to operating activities
-2
-23
-3
-35
-19
-51
Adjustments for non-cash operating items, etc. 16 9
Change in working capital
-72
Payment of pension liabilities and other provisions -7 -9
-14
-16 -31
-33
Cash flow from operating activities, gross
Interest received, etc. 11 3
Interest paid, etc.
-95
-109
-172
-161
-313
-302
Taxes paid 5 -6
-64
-52 -64
-52
Cash flow from operating activities, net
Investments in ferries including dockings, etc.*
-263
-113
-1,047
-408
-1,784
-1,145
Sale of ferries 0 0
Investments in other non-current tangible assets
-276
-41
-431
-85
-767
-421
Sale of other non-current tangible assets 19 3
Investments in non-current intangible assets
-18
-14
-32
-28
-66
-62
Acquisition of enterprises, associates, joint ventures, and activities -21 0
-56
-1,765
Sale of shares in associated company
Other investing cash flows 0 0
Cash flow to/from investing activities, net
-558
-164
-1,511
-511
-4,210
-3,210
Cash flow before financing activities, net
-130
-1
Proceed from bank loans and loans secured by mortgage in ships 500 0
Repayment and instalments of bank loans and loans secured by mortgage in ships
-562
-333
-1,352
-398
-2,303
-1,349
Payment of lease liabilities -220 -203
-524
-383 -975
-834
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares 0 -75
-32
-75 -32
-75
Cash received from exercise of share options
Other financing cash flows 2 0
-31
Dividends paid to non-controlling interests
-3
-3
-3
Dividends paid to equity holders of DFDS A/S 0 0
-229
Cash flow to/from financing activities, net
-280
-566
-64
-400
-23
-359
Net increase (decrease) in cash and cash equivalents
-153
-360
Cash and cash equivalents at beginning of period 882 1,522
Foreign exchange and value adjustments of cash and cash equivalents
-1
-1
-1
Cash and cash equivalents at end of period **
* The cash flow for Q2 2021, H1 2021 and Full year 2021 includes an amount of DKK 19m related to a net settlement of a vessel swap where DFDS buys a vessel of DKK 332m, sells a vessel of DKK 165m, and settles a loan receivable of DKK 149m.
** At 30 June 2022 DKK 175m (30 June 2021: DKK 167m) of the cash w
as 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, the war in Ukraine and the current macro economy environment certain significant
estimates have been revisited in Q2 2022 compared to year-end 2021, particularly related
to passenger traffic and DFDS’ activities in Russia and Ukraine. The review 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 Q2 2022 Management has revisited forecasts for all cash generating units
(CGUs) and concludes that no impairments nor reversals of prior year impairments are
necessary.
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Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
H1 2022
External revenue 7,141 5,617
13 12,771
Intragroup revenue
649
28
302
978
Total revenue
7,790
5,644
315
13,749
Operating profit (EBITDA) before special items 1,801
491
-11
2,280
Operating profit (EBIT) before special items 887 205
-52
1,040
Operating profit after special items (EBIT) 902 207
-52
1,057
Invested capital, average
20,709
4,525
745
25,979
DKK m
Ferry
Division
Logistics
Division
Non-
allocated Total
H1 2021
External revenue
5,042
2,930
9
7,981
Intragroup revenue 512 51
264 827
Total revenue 5,554 2,980
273 8,807
Operating profit (EBITDA) before special items
1,407
227
14
1,647
Operating profit (EBIT) before special items
595
105
-27
672
Operating profit after special items (EBIT)
615
85
-26
674
Invested capital, average 20,490
1,473
523
22,486
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Note 3 Revenue
H1 2022
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea 2,652 -
0 2,652
Mediterranean
1,994
-
0
1,994
English Channel 1,781 -
0 1,781
Baltic Sea
713
-
0
713
Continent - 2,212
0 2,212
Nordic
-
2,236
0
2,236
UK/Ireland - 1,169
0 1,169
Other
0
0
13
13
Total
7,141
5,617
13
12,771
Product and services
Seafreight and shipping logistics solutions 5,239 17
0 5,256
Transport solutions
37
5,237
0
5,274
Passenger seafare and on board sales 1,103 0
0 1,102
Terminal services
497
3
0
500
Charters 171 17
0 189
Agency and other revenue
93
343
13
450
Total 7,141
5,617
13
12,771
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
510m (H1 2021: DKK 104m).
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 218m (H1 2021: DKK 163m).
H1 2021
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea 1,790 -
0 1,790
Mediterranean
1,404
-
0
1,404
English Channel 1,203 -
0 1,203
Baltic Sea
646
-
0
646
Continent - 1,272
0 1,272
Nordic
-
877
0
877
UK/Ireland - 780
0 780
Other
0
0
9
9
Total
5,042
2,930
9
7,981
Product and services
Seafreight and shipping logistics solutions 4,121 70
0 4,192
Transport solutions
10
2,829
0
2,839
Passenger seafare and on board sales 237 0
0 237
Terminal services
433
3
0
436
Charters 152 0
0 152
Agency and other revenue
89
27
9
125
Total
5,042
2,930
9
7,981
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Note 4 Special items
2022
2021
DKK m H1 H1
Acquisition and integration planning costs relating to HSF Logistics Group
0
-20
ICT value adjustment, etc. 2 0
Reversal of restructuring cost
15
0
Reversal of accrued cost related to Jubilee shares 0 2
Accounting gain on sale of Gothia Seaways
0
20
Special items, net
17
2
Note 5 Acquisition of enterprises and sale of activities
2022
ICT Logistics
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 the transaction was completed on 19 January 2022. The purchase
price for the acquired shares amounted to DKK 69m. Cash in the acquired company
amounted to DKK 33m. Consequently, the liquidity effect was DKK 35m.
The acquisition is made by DFDS A/S which already owned 19.9% of ICT Logistics Group. In
Q1 2022 the Group revalued the existing ownership share of 19.9% to DKK 17m which has
resulted in a gain of DKK 9m.
primeRail
On 10 May 2022 DFDS Group acquired 100% of the share capital of the German rail
forwarding company primeRail GmbH headquartered in Troisdorf, Germany. The purchase
price for the acquired shares amounted to DKK 37m. Cash in the acquired company
amounted to DKK 16m. Accordingly the liquidity effect was DKK 21m.
Lucey Transport
On 25 July 2022 DFDS Group entered into an agreement to acquire 100% of the share
capital of the Irish logistics service provider Lucey Transport Logistics Ltd. Closing of the
transaction is subject to regulatory approvals.
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 H1 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.
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Note 6 continued
H1 2022 H1 2021
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2) 237 237
121 121
Securities (Level 3)
2
2
10
10
Financial liabilities
Derivatives (Level 2) 106 106
109 109
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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 the Oslo Stock Exchange there is a
requirement to provide certain supplementary financial information on the Parent Company.
The following financial information has been prepared using the same accounting policies as
for the Annual Report for 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 1,521m, equivalent to 39% compared to
H1 2021. Operating profit before depreciation (EBITDA) and special items increased by DKK
175m equivalent to 19% compared to H1 2021.
Profit before tax increased by DKK 323m equivalent to 136% compared to H1 2021.
The Parent Company’s net interest-bearing debt decreased by DKK 110m equivalent to 2%
compared to 31 December 2021.
2022 2021 2021-22 2021
DKK m
H1
H1
LTM
Full year
Income statement
Revenue 5,400 3,879
9,771 8,250
Operating profit before depreciation (EBITDA) and
special items
1,087 912
1,946 1,771
Operating profit (EBIT) before special items
363
61
380
77
Special items, net 51 -20
15 -55
Operating profit (EBIT)
414
42
394
22
Financial items, net 147 196
35 85
Profit before tax
561
238
429
106
Profit for the period 567
242
455
131
Assets
Non-current intangible assets
433
409
-
423
Non-current tangible assets 6,777 5,588
- 6,088
Right-of-use assets
1,133
845
-
1,209
Investments in affiliated companies, associates and
joint ventures
8,509 6,767
- 8,387
Non-current receivables from affiliated companies
22 53
- 47
Other non-current assets
223
41
-
70
Non-current assets 17,098 13,702
- 16,224
Current receivables from affiliated companies
923
696
-
712
Receivables from associates and joint ventures 24 23
- 23
Cash
976
1,258
-
475
Other current assets 1,603 1,468
- 1,195
Current assets
3,526 3,445
- 2,405
Assets
20,624
17,147
-
18,629
Equity and liabilities
Equity 9,778 9,550
- 9,355
Non-current liabilities
3,733
3,091
-
3,193
Current liabilities to affiliated companies 2,058 2,020
- 3,429
Other current liabilities
5,055
2,486
-
2,652
Current liabilities
7,113
4,506
-
6,082
Equity and liabilities 20,624
17,147
-
18,629
Equity ratio, % 47.4 55.7 - 50.2
Net interest-bearing debt
6,154
4,134
-
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 (NIBD)
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 ne
t 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
Financial leverage
, times
Net Interest-bearing debt (NIBD)
EBITDA LTM before special items incl. pro forma EBITDA for acquired companies
Earnings per share (EPS)
Profit for the period excluding non-controlling interests
Weighted average number of ordinary shares in circulation
Dividend per share
Dividend for the year
Number of shares at the end of the period
Market value
Number of shares, ex. treasury shares
, end of period times share price end of period
N
umber 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
total 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 posi
tions defined as EVPs and VPs
Managers
Percentage of women of total number of management positions, excluding senior management, defined as positions with responsib
ility 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 member
s 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 Meetin
g
Attendance at Board meetings (All Board members)
Percent
age of total number of Board meetings attended (Not gender specific)
Whistle-blower reporting
Number of cases of whistle
-blower reportings
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CVR
www.dfds.com
16
August 2022
Company announcement no.:
23/2022
Contact
Torben Carlsen, C
EO: +45 33 42 32 01
Karin
a 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 around DKK 25bn.
To over 10,000 freight customers, we deliver high
performan
ce and superior reliability through ferry & port
terminal services and transport & logistics solutions.
For million
s 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.