Q4 and full-year 2022 interim report
SIGNIFICANT
GROWTH DELIVERED
• Revenue in 2022 up 47% to DKK 27bn
• EBITDA up 45% to DKK 5.0bn
• EBITDA outlook of DKK 4.5-5.0bn for 2023 reflects
possible economic slowdown
• Dividend of DKK 286m proposed plus DKK 300m share buyback
2022
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Q4 2022
• 7% lower ferry emission intensity
• ROIC increased to 8.6%
• Leverage further reduced to 2.8x
Outlook 2023
• EBITDA of DKK 4.5-5.0bn
• Revenue at same level as 2022
• Investments of DKK 1.6bn
“Despite headwind in certain areas, our
business performed very well in 2022.
As we increase the return of cash to
shareholders, we continue to see great
potential to strengthen and grow our
network further in the coming years.”
Torben Carlsen, CEO
Q4 revenue increased 17% to DKK 6.5bn driven by the
continued recovery in passenger numbers and spending as
well as price increases for freight services to cover rising
energy and other costs.
Q4 EBITDA before special items increased 18% to
DKK 1,084m. The EBITDA for freight ferry and logistics ac-
tivities increased 5% to DKK 987m driven by higher logis-
tics earnings as the freight ferry result was at the same
level as 2021.
The Q4 EBITDA for passenger activities in the Channel,
Baltic Sea, and Passenger business units increased to
DKK 97m from DKK -20m in 2021. The Q4 passenger
EBITDA was 66% above 2019, the latest pre-Covid-19
year.
For the full-year, EBITDA before special items increased
DKK 1,544m or 45% to DKK 4,955m as the freight ferry
and logistics result increased DKK 588m and the
passenger result increased DKK 955m.
Outlook 2023
The outlook for EBITDA of DKK 4.5-5.0bn before special
items includes continued growth but also assumes a Euro-
pean economic slowdown, negative impacts from the war
in Ukraine, and overcapacity on the Channel. Revenue is
therefore overall expected to remain at the same level as
2022. Investments are expected to amount to around DKK
1.6bn, excluding acquisitions. The outlook is detailed on
page 10.
Highlights Q4
9 February 2023. Conference call today at 10.00am CET
Register ahead of the call via this link. Access code is mailed after registration.
Follow live-streaming of call via this link.
KEY FIGURES
2022
2021
2022
2021
DKK m
Q4
Q4
Change, %
Full-year
Full-year
Change, %
Revenue
6,542
5,583
17
26,873
18,279
47
EBITDA before special items
1,084
915
18
4,955
3,411
45
EBIT before special items
448
309
45
2,457
1,313
87
Profit before tax and special items
370
255
45
2,114
1,035
104
Profit before tax
378
259
46
2,139
1,069
100
2022
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Key figures
2022
2021
2022
2021
DKK m
Q4
Q4
Full-year
Full-year
Income statement
Revenue*
6,542
5,583
26,873
18,279
• Ferry Division
4,052
3,324
16,831
12,216
• Logistics Division
2,832
2,541
11,423
7,155
• Non-allocated items
144
129
624
526
• Eliminations
-486
-411
-2,006
-1,618
Operating profit before depreciation (EBITDA) and special items
1,084
915
4,955
3,411
• Ferry Division
855
741
3,966
2,852
• Logistics Division
278
211
1,066
593
• Non-allocated items
-49
-37
-76
-34
Operating profit (EBIT) before special items
448
309
2,457
1,313
Special items, net
8
4
25
34
Operating profit (EBIT)
457
313
2,482
1,348
Financial items, net
-79
-54
-343
-278
Profit for the period
384
256
2,019
976
Capital
Total assets
-
-
34,084
30,721
Equity
-
-
13,135
11,554
Net interest-bearing debt
-
-
14,109
13,481
Invested capital, end of period
-
-
27,554
25,369
* Revenue has been restated for 2021 and Q1-Q3 2022. Reference is made to Note 1.
2022
2021
2022
2021
DKK m
Q4
Q4
Full-year
Full-year
Cash flows
Cash flows from operating activities
1,026
788
4,480
3,208
Cash flows from investing activities
-491
-1,594
-2,989
-3,210
Free cash flow
534
-806
1,491
-1
Adjusted free cash flow
330
-257
881
1,051
Key operating and return ratios
Average number of employees (FTE)
-
-
11,510
8,874
Revenue growth (reported), %
17.2
45.2
47.0
27.7
EBITDA-margin before special items, %
16.6
16.4
18.4
18.7
Operating margin before special items, %
6.9
5.5
9.1
7.2
Return on invested capital (ROIC), %
-
-
8.7
5.3
ROIC before special items, %
-
-
8.6
5.2
Return on equity, %
-
-
16.4
8.7
Key capital and per share ratios
Financial leverage, times
-
-
2.8
3.7
Equity ratio, %
-
-
38.5
37.6
Earnings per share (EPS), DKK
6.71
4.39
35.09
16.69
Dividend paid per share, DKK
0
0
8.00
0
Number of shares, end of period, '000
-
-
58,632
58,632
Share price, DKK
-
-
256
349
Definitions on page 32.
2022
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Q4 and full-year 2022 interim report / p 4
*2021 ESG data excludes HSF Logistics Group acquired in September 2021.
** 2022 ESG data excludes ICT Logistics Group (acquired in January 2022), primeRail for LTIF figures (acquired in May 2022) and Lucey Transport Logistics (acquired in September 2022).
Definitions on page 33.
ESG key figures
2022
2021
2022
2021
Unit
Q4**
Q4*
Full-year**
Full-year*
Environmental data
Total number of days operated
Days
5,844
5,919
23,358
23,197
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet)
gCO2
12.3
12.9
12.5
12.8
CO2 emissions per GT nautical mile (Route network)
gCO2
12.7
13.6
13.0
13.5
Energy consumption
Total fuel consumption (Route network)
Tonnes
201,734
211,517
825,674
792,865
Oil spills
Spills (>1 barrel)
Number
0
0
0
0
Social data
Representation of women
Total workforce:
%
-
-
24
24
• Non-officed based
%
-
-
12
12
• Office based
%
-
-
43
44
Senior management
%
-
-
16
16
Managers
%
-
-
16
14
Employees
%
-
-
25
27
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mill. hours
3.4
2.9
4.5
4.3
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mill. hours
8.2
10.9
7.9
7.4
Fatalities
Colleagues
Accidents
1
0
1
1
Contractors
Accidents
0
0
0
0
Governance data
Representation of women in the Board (AGM elected members)
%
-
-
33
33
Board nationality - non-Danish (AGM elected members)
%
-
-
33
17
Independent directors (AGM elected members)
%
-
-
83
83
Attendance at Board meetings (All Board members)
%
100
100
100
100
Whistle-blower reporting
Cases
11
5
33
27
2022
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Market overview
Rising inflation and interest rates continued to fuel uncer-
tainty in Europe during Q4. Freight volumes started to
slow down as demand softened in response to high energy
prices and increases in other costs of living.
European supply chains are still challenged by shortages
of industrial parts and raw materials as well as haulage
capacity and staff within some sectors and regions. Back-
logs thus remain in place and this is expected to support
activity levels if underlying demand continues to slow
down. The war in Ukraine, EU’s Mobility Package, and wage
inflation continued to hold back the supply of haulage ca-
pacity.
The growth of Türkiye’s economy slowed somewhat in Q4,
also in response to softer European demand. In 2023,
nearshoring of manufacturing is expected to underpin
growth in the country’s export sector, although elections
in May could lower activity levels for a period.
The recovery in ferry passenger volumes continued in Q4
across northern Europe. The recovery is supported by a
rise in holiday travel by car helped by an increase in the
cost of air travel.
The main changes in average exchange rates in Q4 2022
vs Q4 2021 were depreciation of TRY/DKK by 35% and
SEK/DKK by 7%, and appreciation of USD/DKK by 12%.
Major events in Q4
Logistics network further expanded on island of Ireland
and in the UK
On 29 December 2022, an agreement was entered into to
acquire 100% of McBurney Transport Group head-quar-
tered in Northern Ireland for a debt-free price of
DKK 1.2bn (GBP 138m). The company is focused on mov-
ing cold chain and dry goods in trailers by road and ferry
between island of Ireland and the UK. Warehousing, distri-
bution, and other logistics services are also provided.
The acquisition of McBurney Transport Group is aligned
with DFDS’ strategic focus on cold chain logistics, it over-
laps with existing activities in the region, and offers oppor-
tunities to connect with other parts of DFDS’ pan-Euro-
pean transport network.
McBurney is headquartered in Ballymena, Northern Ire-
land, and operates from eight different locations: three in
Northern Ireland, one in Ireland, three in England and one
in Scotland. In Liverpool, McBurney operates a 25,000-pal-
let cold store, which facilitates the transport of cold chain
goods throughout the UK. McBurney annually transports
more than 100k trailers across the Irish Sea.
The company has over 800 employees and operates
around 400 trucks and 1,360 trailers of which 955 are re-
frigerated trailers. The majority of the equipment is
owned. In 2021, McBurney’s revenue was DKK 1.0bn and
for 2022, revenue is expected to increase to DKK 1.3bn.
The Group’s EBITDA was DKK 160m in 2021 (before IFRS
adjustments).
Expected synergies and an integration plan will be dis-
closed in connection with the closing of the transaction.
Closing of the transaction is subject to regulatory ap-
proval.
Strategic dialogue initiated with Ekol Logistics
To facilitate trade and to enhance customer offerings, a
strategic dialogue between DFDS and Ekol Logistics, a ma-
jor Turkish logistics company, has been initiated to explore
a possible acquisition of Ekol Logistics’ international road
haulage activities. Such a combination of ferry and logis-
tics activities in the Mediterranean network would mirror
DFDS’ proven northern European business model.
To ensure an efficient strategic dialogue for all stakehold-
ers, a filing was submitted on 14 October 2022 to the
Turkish competition authorities to obtain their view on a
Management review
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possible acquisition. In Türkiye it is customary and possi-
ble to file for clearance before transaction terms and doc-
uments are finalised.
Any possible transaction linked to the strategic dialogue
with Ekol Logistics awaits among other things the out-
come of the filing with the Turkish competition authorities
and Board approval of transaction terms.
New Head of Ferry Division
Mathieu Girardin was appointed Head of Ferry Division,
EVP, and member of the Executive Management Team
(EMT) in July 2022 and joined DFDS in October 2022.
Mathieu Girardin, a French national born in 1982, was pre-
viously 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.
Major events after Q4
No major events to report.
Capital distribution to shareholders
In view of DFDS’ solid financial position and prospects, the
Board of Directors proposes to distribute DKK 586m to
shareholders as a combination of a dividend and a share
buyback.
An ordinary dividend of DKK 5.00 per share will be pro-
posed for approval by the annual general meeting (AGM)
in March 2023.
In addition, DKK 300m will be distributed in February
2023 through a Dutch Auction share buyback. See sepa-
rate announcement for details.
ESG actions and plans
Environment
DFDS’ Climate Action Plan covers short-term actions to re-
duce emissions from existing assets (mainly ferries and
transport equipment), and transformative long-term ac-
tions to de-carbonise operations.
Short-term actions and results
In Q4 2022, CO2 emissions were reduced on both own and
chartered vessels deployed across the route network. Own
fleet emissions were reduced 5% to 12.3 g/CO2/GT per
nautical mile from 12.9 g/CO2/GT per nautical mile in Q4
2021. Emissions from the entire route network were low-
ered 7% to 12.7 g/CO2/GT per nautical mile from 13.6
g/CO2/GT per nautical mile in Q4 2021.
For the full-year, CO2 emissions were reduced 4% across
the route network from 13.5 g/CO2/GT per nautical mile in
2021 to 13.0 g/CO2/GT per nautical mile in 2022. Own
fleet emissions were reduced 2% to 12.5 g/CO2/GT per
nautical mile from 12.8 g/CO2/GT per nautical mile in
2021.
The ongoing reduction of emissions is a result of the con-
tinuous improvement of the fleet’s fuel efficiency through
operational end technical solutions such as silicone hull
paint and changed route schedules. In Q4, the increased
focus on route optimisation and speed reduction began to
show its first results. Depending on route, schedules, and
vessel types, the speed reduction initiative has a CO2 re-
duction potential of up to 8-10%.
In November the first e-truck was successfully deployed in
Ghent, Belgium. A further 20 e-trucks were received in
January 2023 in Gothenburg.
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. 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 as well as ports. 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 decar-
bonisation initiatives.
2022
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DFDS joined the Gothenburg-Gent Green Corridor Initiative
in cooperation with the respective ports. The design of a
next generation of ferries and their fuel and propulsion
concepts has been initiated and will be ongoing in coming
quarters.
The de-carbonisation activities within the Logistics Divi-
sion continued to focus on the electrification of the truck
fleet and other vehicles. The need for green electricity will
increase over time and by investing in solar panels (photo-
voltaic systems), own warehouses are expected to pro-
duce 10m kWh of green electricity per year by 2030. 1.5m
kWh was produced in 2022 and production is expected to
triple in 2023.
Social
Diversity & Inclusion
In 2022 the total female workforce representation was
maintained at 24%. This is a positive development as it
was expected to decline due to the consolidation of HSF
Logistics Group with a female gender ratio below DFDS.
The ratio of female managers increased to 16% from 14%
in 2021 underpinned by the strategic focus on Diversity,
Equity and Inclusion.
Safety
For sea-based operations, the lost-time injury frequency
(LTIF) increased to 3.4 in Q4 2022 from 2.9 in Q4 2021.
The development illustrates the importance of continued
monitoring and nurturing of the Safety First program on
board. An e-learning awareness module for safety on
freight ferry cargo decks is currently being developed.
The lost-time injury frequency for the land-based opera-
tion decreased to 8.2 in Q4 compared to 10.9 in Q4 2021.
On the full year we saw an increase to 7.9 in 2022 from
7.4 in 2021 due to among other things a higher number of
incidents within own cold chain trucking entities. The safe
operation of our trucking operations is designated a focus
area for 2023.
Governance
The number of whistle-blower cases is an indicator of em-
ployees’ awareness of DFDS’ Code of Conduct. In 2022, the
number of reported cases increased to 33 from 27 cases in
2021. 42% of the reported cases concerned employee re-
lations and violations of company policies. All cases are
investigated with the involvement of relevant managers
and/or local HR. Most reported incidents have a low level
gravity and main sanctions on closed cases have been to
address unacceptable behaviour and emphasise the im-
portance of acting in accordance with DFDS’ Code of Con-
duct.
Financial performance
Revenue
The Group’s Q4 revenue was DKK 6,542m, an increase of
17.2% compared to 2021. The Group’s full-year revenue
was DKK 26,873m, an increase of 47.0% compared to
2021.
The Ferry Division’s Q4 revenue increased 21.9% to
DKK 4,052m following almost a doubling of passenger
revenue driven by the recovery from Covid-19 and higher
average revenue per passenger. In addition, revenue from
bunker surcharges increased considerably due to higher oil
prices. Freight revenue, excluding bunker surcharges, de-
creased compared to last year due to lower volumes in
Channel and Baltic Sea.
The Logistics Division’s Q4 revenue increased 11.5% to
DKK 2,832m, including a positive impact from the acquisi-
tions of ICT Logistics and Lucey Transport Logistics. Or-
ganic revenue growth for the existing activities was 5.6%
reflecting higher activity, including new warehousing and
customs activities, and improved cost coverage across re-
gions.
Revenue
DKK m
Q4 2022
Q4 2021
Change, %
Change
Ferry Division
4,052
3,324
21.9
728
Logistics Division
2,832
2,541
11.5
291
Non-allocated items
144
129
11.0
14
Eliminations
-486
-411
-18.1
-74
DFDS Group
6,542
5,583
17.2
959
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Operating profit before depreciation (EBITDA) and
special items
The Group’s Q4 EBITDA increased 18% or DKK 169m to
DKK 1,084m driven primarily by higher passenger earn-
ings. The Group’s full-year EBITDA increased 45% to
DKK 4,955m.
Ferry Division’s Q4 EBITDA increased 15% or DKK 114m to
DKK 855m. The EBITDA of DKK 759m for freight ferry ac-
tivities was at the same level as 2021 as higher North Sea
earnings were offset by one-off items in Mediterranean
and lower volumes in Channel and Baltic Sea. The total
EBITDA for passenger activities across the network in-
creased DKK 117m to DKK 97m from DKK -20m in 2021.
The increase was driven by the recovery of passenger
travel from Covid-19.
Logistics Division’s Q4 EBITDA increased 32% or
DKK 68m to DKK 278m following a higher result for the
Dry Goods business unit. The result for the Cold Chain
business unit was 4% lower due primarily to lower export
volumes to the UK.
Depreciation and operating profit (EBIT) before
special items
Depreciation in Q4 of DKK 642m was 7% or DKK 41m
higher than last year. The increase was mainly due to
higher depreciation in the Logistics division following
higher investments in cargo carrying equipment, charter of
a container ship, and the acquisitions of ICT Logistics and
Lucey Transport Logistics. The Ferry Division’s deprecia-
tion was at the same level as 2021.
Operating profit before depreciation (EBITDA) and special items
DKK m
Q4 2022
Q4 2021
Change, %
Change
Ferry Division
855
741
15.4
114
Logistics Division
278
211
32.0
68
Non-allocated items
-49
-37
-35.3
-13
DFDS Group
1,084
915
18.4
169
EBITDA-margin, %
16.6
16.4
n.a.
0.2
Associates and joint ventures, profit/loss on disposals and depreciation
DKK m
Q4 2022
Q4 2021
Change, %
Change
EBITDA before special items
1,084
915
18.4
169
Associates and joint ventures
-5
-4
-26.8
-1
Profit/loss on disposals
12
-1
n.a.
13
Depreciation and impairment
-642
-602
-6.8
-41
EBIT before special items
448
309
45.2
139
Financial items
DKK m
Q4 2022
Q4 2021
Change, %
Change
Interests, net
-113
-73
-56.3
-41
Foreign exchange gains/losses, net
25
24
7.3
2
Other items, net
9
-5
n.a.
14
Total finance, net
-79
-54
-47.0
-25
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
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The Group’s Q4 EBIT before special items increased 45%
to DKK 448m and for the full-year EBIT before special in-
creased 87% to DKK 2,457m.
Special items and operating profit (EBIT) after
special items
There were no material special items in Q4 2022 and for
the full-year special items were a net income of DKK 25m.
The Group’s Q4 EBIT after special items increased 46% to
DKK 457m and for the full-year EBIT after special items
increased 84% to DKK 2,482m.
Financial items
Total net financial items in Q4 was a cost of DKK 79m, an
increase of DKK 25m compared to Q4 2021. The net inter-
est cost was DKK 41m above 2021 due mostly to an in-
crease in borrowing rates on the net interest-bearing debt
excluding lease liabilities. In addition, there was a positive
variance of DKK 14m on other items, net on account of
one-off items.
For the full-year, total net financial items was a cost of
DKK 343m compared to DKK 278m in 2021.
Profit before special items and tax
The Q4 profit before special items and tax increased 45%
to DKK 370m and the profit for the period was DKK 384m,
an increase of DKK 128m compared to 2021. For the full-
year, the profit before special items and tax increased
104% to DKK 2,114m and the profit for the period was
DKK 2,019m.
Earnings per share
Q4 earnings per share (EPS) increased 53% to DKK 6.71
and increased 110% to DKK 35.09 for the full-year.
Cash flow and investments
The Q4 cash flow from operating activities increased 30%
to DKK 1,026m compared to Q4 2021 driven by the im-
proved operating result and a positive cash flow from
working capital. Net investments in Q4 totalled a negative
cash flow of DKK 491m resulting in a free cash flow of
DKK 534m.
The Q4 cash flow from financing activities was negative
by DKK 797m, including a net loan outflow of DKK 589m
and payment of lease liabilities of DKK 213m. The net de-
crease in cash was DKK 263m and at the end of Q4 cash
amounted to DKK 1,189m.
The Q4 adjusted free cash flow (FCFE) was DKK 330m up
from DKK -257m in Q4 2021.
For the full-year, the adjusted free cash flow (FCFE) was
DKK 881m which included DKK 2,707m of investments
comprising operating investments of DKK 1,838m and
ferry new-buildings/purchase/sale of DKK 871m which in-
cluded delivery of one new-building.
Invested capital and ROIC
Invested capital increased 9% to DKK 27.6bn at the end of
2022 compared to year-end 2021. The increase was due
mostly to completion of ferry new-buildings, additional
ferry and logistics leases, purchases of land for warehouse
developments and a cold store, and two logistics acquisi-
tions.
The return on invested capital, ROIC, before special items
increased from 5.2% in 2021 to 8.6% which was above
DFDS’ return target of a minimum ROIC of 8%.
Capital structure
At the end of 2022 net-interest-bearing debt (NIBD)
was DKK 14.1bn, an increase of 5% compared to the end
of 2021. The increase was due to higher lease liabilities as
the net interest-bearing debt excluding lease liabilities of
DKK 9.6bn decreased 3%.
During Q4 2022, a significant portion of short-term inter-
est-bearing liabilities was refinanced consequently reclas-
sified to non-current debt. Refinancing of further short-
term interest-bearing liabilities is expected in 2023.
Financial leverage, as measured by the ratio of NIBD to
EBITDA before special items for the last twelve months
(LTM), was 2.8 at the end of 2022 compared to 3.7 at
year-end 2021.
Equity
Equity amounted to DKK 13,135m at the end of 2022,
including non-controlling interests of DKK 114m. This was
an increase of 14% compared to the end of 2021. Total
comprehensive income for 2022 was DKK 2,055m. Trans-
actions with owners of DKK 474m included dividend pay-
ments of DKK 461m.
2022
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The equity ratio was 38% at the end of 2022 which was
on level with year-end 2021.
Outlook 2023
The outlook visibility for 2023 is impaired by especially
the war in Ukraine and the current elevated financial un-
certainty.
The outlook for 2023 builds on multiple assumptions that
may change significantly as the year progresses.
General market growth prospects
The current consensus 2023 outlook for Europe’s and
Türkiye’s GDP-growth (Gross Domestic Product) is 0.1%
and 3.0%, respectively (Source: Thomson Reuters).
The measures that have and are being taken to lower the
current high inflation is widely expected to lead to a re-
cession in large parts of Europe. GDP-growth is thus ex-
pected to be negative in several European countries in
2023, including the UK and Germany. The war in Ukraine is
likely to depress activity in neighbouring countries for its
duration.
Türkiye’s export to Europe slowed down towards the end
of 2022 but this was offset by higher import flows as
parts of the freight destined for CIS countries in Central
Asia was rerouted through Türkiye.
Geopolitical events could in general dampen the expected
growth, both short- and long-term.
Key freight outlook assumptions for 2023
A high share of freight volumes is expected to remain re-
silient in 2023 but freight volumes are anticipated to de-
cline in parts of the network if economic growth turns
negative.
Mediterranean freight volumes are expected to continue
to grow in 2023, especially if the rerouting of volumes to
Central Asian continues. Near-shoring of manufacturing in
supply chains to Europe is also expected to benefit activ-
ity while lower European demand, not least in Germany,
will reduce activity.
A recession in the UK is expected to reduce both ferry and
logistics volumes. In addition, Channel’s ferry volumes are
expected to be lower in the first half-year as a third opera-
tor ramped up capacity through Q1 2022 and a second op-
erator suspended sailings in most of Q2 2022.
The war in Ukraine is expected to continue to depress ferry
volumes in the Baltic region, especially in Q1 compared to
2022.
The acquisition of McBurney Transport Group is assumed
to be completed by the end of Q1 2023 which, all else be-
ing equal, will increase the Logistics Division’s revenue and
earnings.
Key passenger outlook assumptions for 2023
Around 90% of the passenger EBITDA covering three busi-
ness units - Passenger, Channel, and Baltic Sea – was re-
gained in 2022 following a reduction of DKK 1bn com-
pared to the earnings level pre Covid-19.
Passenger volumes are expected to increase further in
2023 as travel restrictions remained in place through
most of Q1 2022 and travel in general was still ramping
OUTLOOK 2023
DKK m
Outlook 2023
2022
Revenue growth
On level
26,873
EBITDA before special items
4,500-5,000
4,955
Per division:
Ferry Division
3,350-3,650
3,966
Logistics Division
1,200-1,400
1,066
Non-allocated items
-50
-76
Investments
-2,800
-2,989
Types:
Operating
-1,600
-1,838
Ferries: sale & purchase and new-buildings
0
-871
Acquisitions
-1,200
-280
2022
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Q4 and full-year 2022 interim report / p 11
up through the following quarter. Passenger earnings are
therefore expected to increase in 2023.
Revenue outlook
The Group’s revenue is overall expected to remain at the
same level as 2022. The Ferry Division’s revenue growth is
expected mainly to be driven by rate increases to cover
higher operating costs and by volume growth in the Medi-
terranean network. Channel’s freight revenue is expected
to decrease due to a negative full-year impact of the over-
capacity on the Dover Strait. Passenger revenue is ex-
pected to increase. In addition, revenue from bunker sur-
charges is contingent on development in oil prices.
Logistics’ revenue growth is expected to be driven by or-
ganic growth from rate increases and new activities. In ad-
dition, the full-year impact of the acquisition of Lucey
Transport and the acquisition of McBurney Transport
Group, assumed completed by end Q1 2023, will also in-
crease revenue.
Earnings outlook
Based on the above assumptions, the Group’s EBITDA be-
fore special items is expected to be within a range of
DKK 4.5-5.0bn (2022: DKK 5.0bn). See outlook table for
divisional split.
Investments
Operating investments, i.e. excluding acquisitions and
other transactions, are expected to amount to around
DKK 1.6bn:
• No purchases of new or second-hand ferries are ex-
pected
• Dockings and ferry upgrades, including energy effi-
ciency projects: DKK 800m
• Port terminals and other equipment: DKK 400m
• Cargo carrying equipment and warehouses, mainly re-
lated to Logistics Division: DKK 300m
• Other investments, including digital: DKK 100m.
An investment of DKK 1.2bn is expected for the acquisi-
tion of McBurney Transport Group.
Various risks and uncertainties pertain to the outlook
The most important among these are possible major
changes in the demand for ferry services – freight and pas-
sengers – and logistics solutions.
Such demand is to a large extent linked to the level of eco-
nomic activity and trade in primarily Europe, especially
northern Europe, and in particular the UK, as well as adja-
cent regions, particularly Türkiye.
Demand can also be impacted by competitor actions, sup-
ply chain disruptions, and extraordinary events such as
virus outbreaks and geopolitical instability.
The outlook can moreover be impacted by political changes,
first and foremost within the EU and Türkiye. Brexit, the
trade agreement that came into effect on 1 January 2021
between the EU and the UK, is yet to be fully implemented
and its possible impact on trade therefore still constitutes
a risk.
Changes in economic variables, especially oil prices and ex-
change rates, can furthermore impact earnings.
Future financial results may therefore differ significantly
from outlook expectations.
2022
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First e-trucks in operation
125 e-trucks are being delivered in 2023 as part of the
transition to green logistics solutions. By 2030, the target is
to have 90% of the truck fleet running on green fuels.
2022
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Q4 and full-year 2022 interim report / p 13
The division is organised in five
business units:
• North Sea
• Mediterranean
• Channel
• Baltic Sea
• Passenger
Q4 market, activity, and result trends
Total Q4 freight volumes decreased 11.1% compared to
Q4 2021 and by 3.1% excluding Channel. Full-year
volumes decreased 2.5% compared to 2021.
Total Q4 passenger volumes almost tripled to 801k from
289k in Q4 2021. Full-year volumes increased more than
fourfold to 3,772k from 869k in 2021. The 2022 full-year
volumes equalled 74% of volumes in 2019.
North Sea
Q4 freight volumes were 3.7% below Q4 2021. Automo-
tive volumes decreased on the routes out of Sweden and
Germany due to production stops and shortage of haulage
capacity on the Continent. UK volumes were reduced by
strikes in the Felixstowe port as well as some slowdown in
demand.
Q4 EBITDA increased 30% to DKK 422m driven by lower
operating costs and revenue growth from rate increases
and standage fees in port terminals.
Mediterranean
Q4 freight volumes increased 8.4% and by 11.5% adjusted
for a temporary suspension of sailings to Spain. Import
volumes to Türkiye increased as transports were rerouted
for destinations in Central Asia. Export volumes to Europe
also continued to grow.
Q4 EBITDA decreased 15% to DKK 252m due to a one-off
cost item and higher port terminal costs. This offset a pos-
itive impact from higher volumes.
Channel
Q4 freight volumes decreased 20.8% due mainly to lower
volumes on the Dover Strait following a decrease in total
market volumes of 9% and addition of capacity by a third
ferry operator.
Passenger volumes continued to recover through Q4 in-
creasing to 458k from 130k in Q4 2021. The number of
passengers equalled 76% of passengers in Q4 2019. Duty-
Ferry Division
Ferry Division
2022
2022
2021
2021
DKK m
Q1
Q2
Q3
Q4
Full-year
Q1
Q2
Q3
Q4
Full year
Revenue
3,482
4,544
4,753
4,052
16,831
2,694
3,063
3,135
3,324
12,216
EBITDA before special items
598
1,203
1,310
855
3,966
641
766
704
741
2,852
Share of profit/loss of associates and
joint ventures
-4
-1
-2
-6
-13
-3
-2
-3
-4
-13
Profit/loss on disposal of non-current assets,
net
2
0
-3
3
2
1
0
1
2
4
Depreciation and impairment
-445
-466
-451
-455
-1,816
-387
-420
-422
-455
-1,684
EBIT before special items
151
735
854
397
2,138
251
343
281
284
1,160
EBIT margin before special items, %
4
16
18
10
13
9
11
9
9
9
Special items, net
0
15
-
4
18
0
20
0
-8
12
EBIT
151
750
854
401
2,156
251
364
281
277
1,172
Invested capital, average
20,780
20,796
20,839
21,265
20,931
20,299
20,668
20,539
20,371
20,442
ROIC before special items, %
-
-
-
-
9.9
-
-
-
-
5.3
Average number of employees
-
-
-
-
6,138
-
-
-
-
5,381
Number of ferries
-
-
-
-
81
-
-
-
-
80
Lane metres, '000
10,617
11,523
9,915
9,692
41,746
10,246
11,078
10,602
11,085
43,011
Tons, '000
169
149
156
139
613
167
147
162
157
633
Passengers, '000
283
984
1,704
801
3,772
83
109
388
289
869
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free sales increased with the higher number of passengers
compared to 2021.
Q4 EBITDA increased 27% to DKK 130m as higher passen-
ger earnings offset a lower result for freight operations
due to the volume decrease.
Baltic Sea
Q4 freight volumes were down 13.0% as the war in
Ukraine has reduced volumes. The route network’s capac-
ity has been adapted to market changes. Passenger vol-
umes were up 38.7% due to more holiday travel by car
and a higher number of migrant workers. This was under-
pinned by more sailings between Estonia and Sweden and
deployment of new-buildings between Lithuania and Swe-
den.
Q4 EBITDA decreased 8% to DKK 74m following a nega-
tive impact from the lower freight volumes that was
partly offset by higher passenger earnings.
Passenger
Passenger volumes continued to recover through Q4 in-
creasing to 285k from 118k in Q4 2021. The number of
passengers equalled 89% of passengers in Q4 2019.
Q4 EBITDA increased DKK 34m to DKK -53m from
DKK -87m in Q4 2021. The increase was driven by the re-
covery in passenger volumes which offset an increase in
the net bunker cost.
Non-allocated items
These items primarily include external charter activities.
Q4 EBITDA increased 22% to DKK 31m.
2022
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Q4 and full-year 2022 interim report / p 15
Ferry Division
2022
2022
2021
2021
DKK m
Q1
Q2
Q3
Q4
Full-year
Q1
Q2
Q3
Q4
Full-year
North Sea
Revenue
1,165
1,372
1,320
1,297
5,154
971
1,117
991
1,081
4,161
EBITDA before special items
314
457
413
422
1,605
301
378
284
325
1,287
EBIT before special items
159
308
272
273
1,012
150
229
142
169
690
Invested capital*
6,038
5,971
6,652
6,814
6,281
6,762
6,811
6,253
5,930
6,362
ROIC before special items, %
-
-
-
-
15.9
-
-
-
-
10.6
Lane metres freight, '000
3,510
3,574
3,366
3,311
13,761
3,358
3,609
3,362
3,439
13,769
Tons, '000
169
149
156
139
613
167
147
162
157
633
Mediterranean
Revenue
1,015
1,225
1,143
1,116
4,499
770
846
846
942
3,404
EBITDA before special items
293
341
362
252
1,248
248
257
276
297
1,078
EBIT before special items
151
196
214
111
672
155
154
160
166
635
Invested capital*
9,291
9,247
9,328
9,560
9,324
9,558
9,408
9,182
9,192
9,375
ROIC before special items, %
-
-
-
-
6.7
-
-
-
-
6.3
Lane metres freight, '000
1,363
1,426
1,329
1,448
5,566
1,191
1,265
1,229
1,349
5,034
Channel
Revenue
685
1,074
1,202
867
3,828
568
643
681
728
2,619
EBITDA before special items
69
205
207
130
611
74
104
78
102
358
EBIT before special items
-21
100
104
24
207
-16
7
-18
10
-16
Invested capital*
2,172
2,426
2,070
2,089
2,159
1,701
2,250
2,133
2,040
1,939
ROIC before special items, %
-
-
-
-
9.6
-
-
-
-
-1.2
Lane metres freight, '000
4,629
5,410
4,220
3,904
18,164
4,531
4,923
4,767
5,094
19,316
Passengers, '000
127
629
1,205
458
2,420
38
50
224
130
441
Baltic Sea
Revenue
334
412
441
390
1,578
306
361
382
333
1,381
EBITDA before special items
51
119
144
74
388
83
111
118
80
391
EBIT before special items
16
86
107
35
243
51
68
80
26
226
Invested capital*
2,250
2,515
2,466
2,454
2,261
1,525
1,320
1,689
1,620
1,600
ROIC before special items, %
-
-
-
-
10.7
-
-
-
-
14.0
Lane metres freight, '000
999
986
900
918
3,804
1,104
1,199
1,108
1,056
4,467
Passengers, '000
40
61
96
57
254
40
53
79
41
214
Passenger
Revenue
184
446
632
361
1,622
31
40
184
208
463
EBITDA before special items
-147
64
165
-53
30
-100
-120
-85
-87
-392
EBIT before special items
-168
34
141
-76
-69
-124
-147
-109
-108
-488
Invested capital*
798
859
854
797
801
629
731
751
699
677
ROIC before special items, %
-
-
-
-
-9.1
-
-
-
-
-72.6
Lane metres freight, '000
114
127
99
111
451
61
82
136
147
425
Passengers, '000
116
294
403
285
1,098
5
6
84
118
214
Non-allocated items
Revenue
140
76
100
168
485
86
102
105
164
456
EBITDA before special items
18
17
17
31
82
36
36
34
25
131
EBIT before special items
14
12
15
31
72
35
33
25
22
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
Q4 market, activity and result trends
Dry Goods
Overall forwarding volumes were below 2021 across re-
gions as demand slowed down towards the end of the
year. Demand for contract logistics solutions, including
warehousing, continued however to grow and utilisation
was increased in the new warehousing facilities in Sweden,
the Netherlands, and the UK.
Q4 EBITDA increased 116% to DKK 142m including a posi-
tive impact from the acquisitions of ICT Logistics and
Lucey Transport Logistics. Most activities across regions
increased earnings as margins were restored by improved
coverage of rising haulage and energy costs. In addition,
warehousing capacity was expanded and utilisation im-
proved.
Cold Chain
Nordic forwarding volumes in the meat segment slowed
down in the quarter while cost coverage for the Danish
haulage operation improved.
On the Continent, activity in Germany continued to grow.
Export volumes to the UK were lower than expected as
demand slowed down and the additional costs of trading
with the UK also held back volumes. The adaptation of its
operating model to EU’s Mobility Package continued in the
quarter, including the in-house haulage operated out of
Poland. Continental volumes remained stable in the quar-
ter.
In the UK, cold store warehousing volumes and utilisation
were increased in England while Scottish seafood volumes
remained subdued.
Q4 EBITDA decreased 6% to DKK 136m from DKK 145 m
in Q4 2021 following the lower continental export vol-
umes to the UK while results for the Nordic and domestic
UK activities were improved.
Logistics Division
Logistics Division
2022
2022
2021
2021
DKK m
Q1
Q2
Q3
Q4
Full-year
Q1
Q2
Q3
Q4
Full year
Revenue
2,666
2,979
2,947
2,832
11,423
1,426
1,554
1,633
2,541
7,155
EBITDA before special items
216
274
297
278
1,066
101
126
155
211
593
Share of profit/loss of associates and
joint ventures
-1
0
0
1
-1
0
0
0
0
0
Profit/loss on disposal of non-current as-
sets, net
2
4
3
9
19
0
1
0
-2
-1
Depreciation and impairment
-144
-147
-148
-165
-603
-62
-61
-73
-127
-322
EBIT before special items
74
131
152
124
480
39
66
83
81
269
EBIT margin before special items, %
3
4
5
4
4
3
4
5
3
4
Special items, net
2
0
0
4
7
0
-19
25
-4
2
EBIT
77
131
152
128
487
39
47
109
77
271
Invested capital, average
4,418
4,676
4,934
5,205
4,797
1,469
1,497
2,720
4,091
2,520
ROIC before special items, %
-
-
-
-
7.9
-
-
-
-
8.6
Average number of employees
-
-
-
-
4,544
-
-
-
-
2,774
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Logistics Division
2022
2022
2021
2021
DKK m
Q1
Q2
Q3
Q4
Full-year
Q1
Q2
Q3
Q4
Full-year
Dry Goods
Revenue**
1,436
1,636
1,569
1,642
6,283
1,147
1,231
1,191
1,352
4,922
EBITDA before special items
109
147
144
142
542
70
83
93
66
312
EBIT before special items
44
77
75
60
257
23
38
44
20
125
Invested capital*
1,562
1,682
2,025
2,020
1,678
1,038
989
922
1,103
1,009
ROIC before special items, %
-
-
-
-
12.1
-
-
-
-
9.8
Cold Chain
Revenue**
1,259
1,361
1,400
1,263
5,283
351
399
533
1,354
2,636
EBITDA before special items
107
127
153
136
523
31
43
63
145
281
EBIT before special items
30
54
77
62
223
16
28
39
62
145
Invested capital*
3,048
3,059
3,102
3,264
3,119
475
492
3,037
3,122
1,512
ROIC before special items, %
-
-
-
-
5.6
-
-
-
-
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.
** Revenue has been restated for Q1-Q3 2022, due to reclassification between revenue and costs. Neither EBITDA nor EBIT have been impacted.
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Management statement
Executive Board Torben Carlsen , CEO . Ka rina Deaco n , CFO
Board of directors Clau s V. Hemmi ngsen , Chai r , Klaus N yborg , Vice Chair ,
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DFDS Group - Income statement
DFDS Group - Income Statement
2022
2021
2022
2021
DKK m
Note
Q4
Q4
Full-year
Full-year
Revenue
3
Costs
Ferry and other ship operation and maintenance
-1,557
-1,363
-6,426
-3,880
Freight handling
-732
-681
-3,090
-2,598
Transport solutions
-1,679
-1,359
-6,657
-4,303
Employee costs
-1,269
-1,079
-4,730
-3,444
Costs of sales and administration
-221
-185
-1,015
-643
Operating profit before depreciation (EBITDA) and special items
Share of profit/loss of associates and joint ventures
-5
-4
-14
-13
Profit/loss on disposal of non-current assets, net
-1
Depreciation, ferries and other ships
-347
-358
-1,447
-1,322
Depreciation, other non-current assets
-295
-244
-1,058
-766
Operating profit (EBIT) before special items
Special items, net
4
Operating profit (EBIT)
Financial income
Financial costs
-128
-77
-409
-307
Profit before tax
Tax on profit
-4
-120
-94
Profit for the period
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
-1
Profit for the period
Earnings per share
Basic earnings per share (EPS) of DKK 20 , DKK
Diluted earnings per share (EPS-D) of DKK 20 , DKK
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DFDS Group – Statement of Comprehensive income
2022
2021
2022
2021
DKK m
Q4
Q4
Full-year
Full-year
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations
-46
-46
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
-46
-46
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
Value adjustment transferred to operating costs
-20
-56
Value adjustment transferred to financial costs
-5
Value adjustment transferred to non-current tangible assets
-43
-139
Tax on items that may be reclassified to the Income statement
-31
-1
Foreign exchange adjustments, subsidiaries
-32
-177
Items that are or may be reclassified subsequently to the Income statement
-39
-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
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DFDS Group - Balance sheet
Assets
Equity and liabilities
2022
2021
DKK m
Full-year
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
2022
2021
DKK m
Full-year
Full-year
Share capital
Reserves
-284
-396
Retained earnings
Equity attributable to equity holders of DFDS A/S
Non-controlling interests
Equity
Interest-bearing liabilities
Lease liabilities
Deferred tax
Pension and jubilee liabilities
Other provisions
Derivative financial instruments
Non-current liabilities
Interest-bearing liabilities
Lease liabilities
Trade payables
Payables to associates and joint ventures
Other provisions
Corporation tax
Other payables
Derivative financial instruments
Prepayments
Current liabilities
Liabilities
Equity and liabilities
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DFDS Group - Statement of changes in equity 1 January - 31 December 2022
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Equity at 1 January 2022
-366
-5
-25
Comprehensive income for the period
Profit for the period
Other comprehensive income after tax
-177
-78
Total comprehensive income
-177
Transactions with owners
Acquisition, non-controlling interests
-1
Dividend paid
-235
-235
-235
Dividend paid, non-controlling interests
-3
-3
Dividend on treasury shares
Extraordinary dividend paid
-235
-235
-235
Extraordinary dividend on treasury shares
Share-based payments
Purchase of treasury shares
-2
-30
-32
-32
Transactions with owners
-2
-468
-470
-4
-474
Equity at 31 December 2022
-543
-28
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DFDS Group - Statement of changes in equity 1 January - 31 December 2021
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Equity at 1 January 2021
-394
-25
Comprehensive income for the period
Profit for the period
Other comprehensive income after tax
-151
-8
-1
-9
Total comprehensive income
-151
Transactions with owners
Addition related to acquisition, non-controlling interests
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
-14
-15
-12
Equity at 31 December 2021
-366
-5
-25
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DFDS Group – Statement of cash flows
2022
2021
2022
2021
DKK m
Q4
Q4
Full-year
Full-year
Operating profit before depreciation (EBITDA) and special items
Cash flow effect from special items related to operating activities
-4
-7
-56
-51
Adjustments for non-cash operating items, etc.
Change in working capital
-94
Payment of pension liabilities and other provisions
-21
-10
-41
-33
Interest received, etc.
Interest paid, etc.
-127
-90
-388
-302
Taxes paid
-20
-109
-52
Cash flow from operating activities
Investments in ferries including dockings, etc.*
-171
-616
-1,747
-1,145
Sale of ferries
Investments in other non-current tangible assets
-359
-280
-1,026
-421
Sale of other non-current tangible assets
Investments in non-current intangible assets
-20
-24
-70
-62
Acquisition of enterprises, associates, joint ventures, and activities
-803
-280
-1,765
Divestment of enterprises and associates
-2
Other investing cash flows
-3
Cash flow from investing activities
-491
-1,594
-2,989
-3,210
Free cash flow
-806
-1
Proceed from bank loans and loans secured by mortgage in ferries
Repayment and instalments of bank loans and loans secured by mortgage in ferries
-590
-687
-2,632
-1,349
Repayment of corporate bonds incl. settlement of cross currency swap
-1,000
Payment of lease liabilities
-213
-242
-963
-834
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares
-32
-75
Cash received from exercise of share options
Other financing cash flows
-33
Dividends paid to non-controlling interests
-3
Dividends paid to equity holders of DFDS A/S
-459
Cash flow from financing activities
-797
-1,203
-359
Net cash flow
-263
-487
-360
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
-2
Cash and cash equivalents at end of period **
* The cash flow for 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 31 December 2022 DKK 175m (31 December 2021: DKK 167m) of the cash was deposited on restricted bank accounts. DKK 175m is not restricted from January 2023.
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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.
Restatement rail transport revenue
Rail activities in Türkiye have historically been accounted on a net basis in the income
statement. From Q4 2022 revenue and costs are presented gross and accordingly 2022 and
2021 have been restated. The impact from the restatement in Q1-Q3 2022 is DKK 355m in-
crease in revenue as well as operational cost. For full-year 2021 the restatement amounts
to DKK 410m.
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 sig-
nificant remain the same as per DFDS’ latest annual report. However, considering the war in
Ukraine and the current macro-economic environment certain significant estimates have
been revisited in Q4 2022 compared to year-end 2021, particularly related to passenger
traffic and DFDS’ activities in Eastern Europe. The review did not give rise to a change in es-
timates.
In the preparation of the Interim Report, Management undertakes several accounting esti-
mates and assessments and makes assumptions which provide the basis for recognition and
measurement of the assets, liabilities, revenues and expenses of the Group and the Parent
Company. These estimates, assessments and assumptions are based on historical experi-
ence and other factors which Management considers reasonable under the circumstances,
but which by their nature are uncertain and unpredictable. The assumptions may be incom-
plete or inaccurate, and unanticipated events or circumstances may occur, for which reason
the actual results may deviate from the applied estimates, assessments, and assumptions.
Impairment considerations due to the war in Ukraine and current macro environment
Impairment testing is undertaken at year-end unless indications of impairment occur during
the year. In Q4 2022 Management has performed an impairment test 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
Full year 2022
External revenue
15,503
11,352
18
26,873
Intragroup revenue
1,329
71
606
2,006
Total revenue
16,831
11,423
624
28,879
Operating profit (EBITDA) before special items
3,966
1,066
-76
4,955
Operating profit (EBIT) before special items
2,138
480
-162
2,457
Operating profit after special items (EBIT)
2,156
487
-162
2,482
Invested capital, average
20,931
4,797
795
26,523
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Full year 2021
External revenue
11,180
7,081
18
18,279
Intragroup revenue
1,036
74
508
1,618
Total revenue
12,216
7,155
526
19,897
Operating profit (EBITDA) before special items
2,852
593
-34
3,411
Operating profit (EBIT) before special items
1,160
269
-116
1,313
Operating profit after special items (EBIT)
1,172
271
-96
1,348
Invested capital, average
20,442
2,520
361
23,324
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Note 3 Revenue
All material revenue is recognised when each separate obligation in the customer contract
is fulfilled following the "over-time principle". Most transports carried out by the Ferry Divi-
sion are characterised by short delivery time (most sailings are less than 30 hours while
sailings to/from Türkiye are up to 72 hours). Transports carried out by Logistics Division can
take 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
1,327m (2021: DKK 449m).
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 374m (2021: DKK 311m).
Full-year 2022
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
5,630
-
0
5,630
Mediterranean
4,471
-
0
4,471
English Channel
3,906
-
0
3,906
Baltic Sea
1,496
-
0
1,496
Continent
-
4,416
0
4,416
Nordic
-
4,418
0
4,418
UK/Ireland
-
2,518
0
2,518
Other
0
0
18
18
Total
15,503
11,352
18
26,873
Product and services
Seafreight and shipping logistics solutions
10,425
27
0
10,452
Transport solutions
595
10,820
0
11,415
Passenger seafare and on board sales
2,982
0
0
2,982
Terminal services
953
6
0
959
Charters
331
0
0
331
Agency and other revenue
216
498
18
733
Total
15,503
11,352
18
26,873
Full-year 2021
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
3,849
-
0
3,849
Mediterranean
3,378
-
0
3,378
English Channel
2,603
-
0
2,603
Baltic Sea
1,350
-
0
1,350
Continent
-
3,156
0
3,156
Nordic
-
2,327
0
2,327
UK/Ireland
-
1,598
0
1,598
Other
0
0
18
18
Total
11,180
7,081
18
18,279
Product and services
Seafreight and shipping logistics solutions
8,432
98
0
8,530
Transport solutions
434
6,778
0
7,212
Passenger seafare and on board sales
976
0
0
976
Terminal services
851
6
0
856
Charters
311
0
0
311
Agency and other revenue
176
199
18
393
Total
11,180
7,081
18
18,279
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Note 4 Special items
.
Note 5 Acquisition of enterprises and sale of activities
The above purchase price allocations are preliminary. Accordingly, changes may occur as the
purchase price allocation is not considered final until 12 months after acquisition.
2022
2021
DKK m
Full-year
Full-year
Acquisition and integration planning costs relating to HSF Logistics Group
0
-29
Adjustment of earn-out regarding an acquisition
4
0
Accounting gain on sale of Gothia Seaways
0
20
Accounting gain on sale of Calais Seaways
0
26
Accounting gain on sale of office and warehousing building in Belgium
0
31
Accounting gain related to disposal of associated companies
0
16
ICT value adjustment, etc.
2
0
Reversal of restructuring cost (2021: restructuring costs etc.)
19
-63
Reversal of accrued cost related to Jubilee shares
0
4
Reversal of impairment of a freight ferry made in connection with reclassification to
asset held for sale
0
29
Special items, net
25
34
DKK m
Lucey Transport
Logistics
Other
acquisitions
Total acquisitions
Non-current intangible assets
111
19
130
Land and buildings
196
0
196
Equipment etc.
38
33
71
Non-current assets
345
52
397
Trade receivables including work in progress services
42
73
115
Other receivables
5
6
11
Cash at hand and in bank
76
50
126
Current assets
123
129
252
Total assets
469
181
650
Deferred tax
14
4
18
Interest bearing debt
196
18
214
Non-current liabilities
210
22
232
Trade payables
17
66
83
Interest bearing debt
16
10
26
Other current liabilities
13
8
21
Current liabilities
47
83
130
Total liabilities
257
106
363
Fair value of acquired net assets
212
76
288
Total purchase price
Cash consideration
300
106
406
Contingent consideration
7
0
7
Fair value of existing ownership share
0
17
17
Fair value of the purchase price
308
123
431
Goodwill at acquisition
97
47
144
Cash consideration
300
106
406
Acquired cash at hand and in bank
76
50
126
Net outflow of cash from acquisition
224
56
280
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Note 5 Continued
2022
McBurney Transport Group
On 29 December 2022 DFDS Group entered into an agreement to acquire 100% of McBur-
ney Transport Group headquartered in Northern Ireland. The company is focused on moving
cold chain and dry goods in trailers by road and ferry between island of Ireland and the UK.
Closing of the transaction is subject to regulatory approval.
Lucey Transport Logistics
On 30 September 2022, the acquisition of Lucey Transport Logistics Ltd. based in Dublin,
Ireland was completed and the DFDS Group obtained control as from this date. The acquired
company is after the acquisition included in the Dry Goods Business Unit in the Logistics Di-
vision.
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 manage-
ment, bonded storage, and product rework and labelling.
DFDS paid DKK 300m for the acquired company. Cash in the acquired company amounted to
DKK 76m. Accordingly the liquidity effect was DKK 224m. In addition, an earn-out agree-
ment was entered into according to which seller is entitled to additional payment based on
financial performance for the following 12 months period after the acquisition.
In connection with the acquisition DFDS has measured identifiable intangible assets i.e., cus-
tomer relationships etc. which are recognised in the acquisition balance sheet at their fair
value of DKK 111m at acquisition date.
Following recognition of acquired identifiable assets and liabilities at their fair value, the
goodwill related to the acquisition is DKK 97m. The goodwill represents primarily the value
of the staff and know-how taken over and expected synergies from combining the acquired
Group with the existing DFDS activities and network. The goodwill is not deductible for tax
purposes.
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 amount 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 for-
warding 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.
2021
The purchase price allocation for HSF Group (acquired 14 September 2021) is finalised and
unchanged compared to 31 December 2021. For further details of the acquisition, refer to
the annual report for 2021.
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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 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.
Full-year 2022
Full-year 2021
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
346
346
58
58
Securities (Level 3)
2
2
10
10
Financial liabilities
Derivatives (Level 2)
48
48
83
83
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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. DFDS has adopted all new, amended or revised accounting
standards and interpretations (IFRSs) endorsed by the EU effective for the accounting pe-
riod beginning on 1 January 2022. For further description reference is made to note 1 Ac-
counting policies.
The Parent Company’s revenue increased by DKK 3,370m, equivalent to 41% compared to
2021. Operating profit before depreciation (EBITDA) and special items increased by DKK
872m equivalent to 49% compared to 2021.
Financial items, net for 2022 includes mainly reversal of previous impairments of invest-
ments in subsidiaries that are no longer needed DKK 364m.
Profit before tax increased by DKK 1,502m from DKK 131m to DKK 1,608m compared to
2021.
The Parent Company’s net interest-bearing debt decreased by DKK 867m equivalent to 14%
compared to 31 December 2021.
2022
2021
DKK m
Full-year
Full-year
Income statement
Revenue
11,621
8,250
Operating profit before depreciation (EBITDA) and special items
2,643
1,771
Operating profit (EBIT) before special items
1,115
77
Special items, net
55
-55
Operating profit (EBIT)
1,143
22
Financial items, net
438
85
Profit before tax
1,608
106
Profit for the period
1,608
131
Assets
Non-current intangible assets
448
423
Non-current tangible assets
6,817
6,088
Right-of-use assets
1,818
1,209
Investments in affiliated companies, associates and joint ventures
9,290
8,387
Non-current receivables from affiliated companies
60
47
Other non-current assets
282
70
Non-current assets
18,714
16,224
Current receivables from affiliated companies
1,064
712
Receivables from associates and joint ventures
22
23
Cash
489
475
Other current assets
1,412
1,195
Current assets
2,988
2,405
Total assets
21,702
18,629
Equity and liabilities
Equity
10,649
9,355
Non-current liabilities
4,071
3,193
Current liabilities to affiliated companies
1,868
2,072
Other current liabilities
5,114
4,010
Current liabilities
6,982
6,082
Total equity and liabilities
21,702
18,629
Equity ratio, %
49.1
50.2
Net interest-bearing debt
7,131
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
Non-current intangible and tangible assets plus net working capital (non-interest bearing current assets minus non-interest bearing current liabilities) minus
pension and jubilee liabilities and other provisions
Net Interest-bearing debt (NIBD)
Interest-bearing liabilities (excluding provision for pensions) minus interest-bearing assets minus cash and securities
LTM
Last twelve months
Return on invested capital (ROIC), %
Net operating profit after taxes (NOPAT)
Average invested capital
× 100
Free cash flow
Cash flow from operating activities minus cash flow from investing activities
Adjusted free cash flow (FCFE)
Free cash flow excluding acquisitions/divestments and special items minus payment of lease liabilities and currency contracts related to leases
Return on equity, %
Profit for the period excluding non-controlling interests
Average equity excluding non-controlling interests
× 100
Equity ratio, %
Equity at end of period
Total assets
× 100
Financial leverage, times
Net Interest-bearing debt (NIBD)
EBITDA LTM 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
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 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 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 mem-
bers)
Percentage of non-Danish members of total number of members of the Board of Directors elected at the Annual General Meeting
Independent directors (AGM elected members)
Percentage of independent directors of total number of members of the Board of Directors elected at the Annual General Meeting
Attendance at Board meetings (All Board members)
Percentage of total number of Board meetings attended (Not gender specific)
Whistle-blower reporting
Number of cases of whistle-blower reports
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CVR 14 19 47 11
www.dfds.com
9 February 2023
Company announcement no.: 3/2023
Contact
Torben Carlsen, CEO: +45 33 42 32 01
Karina Deacon, CFO: +45 33 42 33 42
Søren Brøndholt Nielsen, IR: +45 33 42 33 59
Communications: +45 31 16 28 47
Disclaimer
The statements about the future in
this announcement contain risks and uncertainties
and actual developments may therefore diverge
significantly from the statements about the future.
About DFDS
DFDS provides ferry and transport services in and around
Europe, generating annual revenues of DKK 27bn.
To over 10,000 freight customers, we deliver high perfor-
mance and superior reliability through ferry & port termi-
nal services and transport & logistics solutions.
For millions of passengers, we provide safe overnight and
short sea ferry services.
Our 11,500 employees are located on ferries, port termi-
nals, distribution centres, and in offices across more than
20 countries. DFDS was founded in 1866, is headquartered
in Copenhagen, and listed on NASDAQ Copenhagen.