Q1 2023 interim report
SOLID
START
TO 2023
• Revenue up 9% to DKK 6.3bn
• EBITDA up 23% to DKK 1.0bn
• Passenger recovery continued
• Slowdown in freight volumes
• EBITDA outlook of DKK 4.5-5.0bn
unchanged
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Q1 2023
• 7% lower CO2 emissions per GT
nautical mile
• ROIC increased to 9.0% from 4.6%
• Acquisition of McBurney completed
Outlook 2023, unchanged
• EBITDA of DKK 4.5-5.0bn
• Revenue at same level as 2022
• Investments of DKK 1.6bn
“Our Q1 result was ahead of our expec-
tations. We are however closely moni-
toring our markets as we continue to
develop growth opportunities to en-
hance our customer offerings.”
Torben Carlsen, CEO
Q1 revenue increased 9% to DKK 6.3bn driven by the con-
tinued recovery in passenger numbers and spending, price
increases for freight services to cover rising energy and
other costs, and a positive impact from acquisitions.
Q1 EBITDA increased 23% to DKK 1,007m. The EBITDA for
the freight ferry activities increased 4% to DKK 717m and
the EBITDA for the Logistics Division increased 38% to
DKK 299m.
Freight volumes between the UK and Continent/Scandina-
via declined in Q1, especially on the English Channel, while
domestic transport volumes, also in the UK, were more ro-
bust. The war in Ukraine lowered freight volumes in the
Baltic region compared to 2022.
The Q1 EBITDA for passenger activities across the route
network increased DKK 100m to DKK 9m which was on
level with Q1 2019, the latest pre-Covid-19 year.
For the last twelve months (LTM) 2023-22, EBITDA in-
creased 4% to DKK 5,160m.
Outlook 2023
The outlook for EBITDA of DKK 4.5-5.0bn is unchanged.
Revenue is overall still expected to remain at the same
level as 2022. The investment outlook of around DKK
1.6bn is also unchanged, excluding acquisitions. The out-
look is detailed on page 9.
Highlights Q1
KEY FIGURES
2023
2022
2022-23
2021-22
2022
DKK m
Q1
Q1
Change, %
LTM
LTM
Change, %
Full-year
Revenue
6,341
5,837
9
27,376
20,249
35
26,873
Operating profit before depreciation (EBITDA)
1,007
821
23
5,160
3,404
52
4,974
Operating profit (EBIT)
362
207
75
2,623
1,286
104
2,468
Profit before tax
229
149
54
2,220
1,026
116
2,139
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Key figures
2023
2022
2022-23
2022
DKK m
Q1
Q1
LTM
Full-year
Income statement
Revenue
6,341
5,837
27,376
26,873
• Ferry Division
3,820
3,482
17,170
16,831
• Logistics Division
2,849
2,666
11,607
11,423
• Non-allocated items
177
162
639
624
• Eliminations
-505
-472
-2,040
-2,006
Operating profit before depreciation (EBITDA)
1,007
821
5,160
4,974
• Ferry Division
727
598
4,113
3,984
• Logistics Division
299
216
1,148
1,066
• Non-allocated items
-18
7
-101
-76
Operating profit before amortisation (EBITA)
403
239
2,767
2,603
Operating profit (EBIT)
362
207
2,623
2,468
Financial items, net
-133
-59
-404
-329
Profit for the period
130
114
2,035
2,019
Capital
Total assets
35,718
32,450
-
34,084
Equity
12,711
11,462
-
13,135
Net interest-bearing debt
15,845
14,638
-
14,109
Invested capital, end of period
28,980
26,424
-
27,554
2023
2022
2022-23
2022
DKK m
Q1
Q1
LTM
Full-year
Cash flows
Cash flows from operating activities
1,040
716
4,804
4,480
Cash flows from investing activities
-1,524
-953
-3,561
-2,989
Free cash flow
-484
-237
1,243
1,491
Adjusted free cash flow
258
-503
1,586
825
Key operating and return ratios
Average number of employees (FTE)
12,382
10,832
11,449
11,510
Revenue growth (reported), %
8.6
51.9
1.9
47.0
EBITDA-margin, %
15.9
14.1
18.8
18.5
EBITA-margin, %
6.4
4.1
10.1
9.7
EBIT-margin, %
5.7
3.6
9.6
9.2
Return on invested capital (ROIC), %, LTM
9.0
4.6
9.0
8.7
ROIC before acquisition intangibles, %, LTM
12.0
6.3
12.0
11.7
Return on equity, %
-
-
16.9
16.4
Key capital and per share ratios
Financial leverage, times
2.9
4.0
2.9
2.8
Equity ratio, %
35.6
35.3
-
38.5
Earnings per share (EPS), DKK
2.28
1.94
35.34
35.09
Dividend paid per share, DKK
5.00
4.00
-
8.00
Number of shares, end of period, '000
58,632
58,632
-
58,632
Share price, DKK
277.8
288.4
-
256.4
Definitions on page 30.
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ESG key figures
2023
2022
2022-23
2022
Unit
Q1**
Q1*
LTM*
Full-year*
Environmental data
Total distance sailed
Nautical miles
1,368,060
1,426,876
5,780,803
5,839,619
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet)
gCO2
12.4
13.1
12.4
12.5
CO2 emissions per GT nautical mile (Route network)
gCO2
12.7
13.6
12.8
13.0
Energy consumption
Total fuel consumption (Route network)
Tonnes
184,896
199,290
785,121
799,515
Oil spills
Spills (>1 barrel)
Number
0
0
0
0
Social data
Representation of women
Total workforce:
%
24
23
-
24
• Non-officed based
%
13
12
-
12
• Office based
%
44
43
-
43
Senior management
%
15
16
-
15
Managers
%
16
15
-
16
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mio. hours
4.3
3.8
4.8
4.5
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mio. hours
10.8
10.9
8.1
7.9
Fatalities
Colleagues
Accidents
0
0
1
1
Contractors
Accidents
1
0
1
0
Governance data
Representation of women in the Board (AGM elected members)
%
33
33
-
33
Board nationality - non-Danish (AGM elected members)
%
33
33
-
33
Independent directors (AGM elected members)
%
83
83
-
83
Attendance at Board meetings (All Board members)
%
100
97
100
99
Whistle-blower reporting
Cases
16
11
38
33
* 2022 ESG data excludes ICT Logistics Group (acquired in January 2022), primeRail for LTIF figures (acquired in May 2022) and Lucey Transport Logistics (acquired in
September 2022).
** 2023 Q1 ESG data excludes McBurney Transport Group (acquired in February 2023)
Definitions on page 31.
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Reporting changes
The financial reporting segments in the management re-
view has from Q1 2023 been aligned with the financial
statements’ segments: Ferry Division, Logistics Division,
and Non-allocated. The division reporting tables in the
management review have been expanded with additional
financial information and key figures, including freight
ferry volumes per area. Financials per business unit previ-
ously reported in the management review will therefore
no longer be reported.
To further simplify reporting, the reporting line Special
items in the Income statement will be discontinued from
Q1 2023. Comparative figures have been restated.
Market overview
Freight volumes generally declined in Q1 following a slow-
down in demand in response to among other things high
energy prices and other increases in costs of living. Uncer-
tainty about the growth outlook for the rest of the year
remains elevated.
The lower demand has eased bottlenecks in European sup-
ply chains as the haulage market’s supply/demand ba-
lance has improved. Certain sectors are still challenged by
shortages of industrial parts and raw materials as well as
staff. Backlogs in the automotive sector remain in place.
The growth of Türkiye’s economy in Q1 2023 was nega-
tively impacted by the earthquake in February. The full-
year growth outlook remains, however, positive as near-
shoring of manufacturing is expected to underpin growth
in the country’s export sector. Türkiye holds elections in
May which lowers visibility.
The year-on-year recovery in ferry passenger volumes
continued in Q1 across northern Europe as Covid-19 travel
restrictions were still in place through Q1 2022 in most
markets. The recovery of volumes on The English Channel
is lagging other markets.
The main changes in average exchange rates in Q1 2023
vs Q1 2022 were depreciation of TRY/DKK by 23%,
NOK/DKK by 10%, and SEK/DKK by 7%.
Major events in Q1
Acquisition of McBurney Transport Group completed
On 28 February 2023, the acquisition of 100% of McBur-
ney Transport Group headquartered in Northern Ireland
was completed. The company is focused on moving cold
chain and dry goods in trailers by road and ferry between
the island of Ireland and the UK. Warehousing, distribution,
and other logistics services are also provided.
McBurney Transport Group has more than 800 employees
and had revenue in 2022 of DKK 1.3bn and EBITDA of
DKK 230m (pre-IFRS 16).
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. The purchase price was
DKK 1.2bn.
Share buyback of DKK 300m completed
A share buyback structured as an auction process was
completed on 22 February 2023. A total of 1,071,428
shares at DKK 280 per share of nominally DKK 20 was ac-
quired for DKK 300m.
Lauritzen Fonden Holding participated in the buyback with
the sale of 453,536 shares (corresponding to 42.33% of
the total). After the buyback DFDS holds 2,451,616 treas-
ury shares corresponding to 4.18% of the total share
capital.
Bond issue of NOK 1.5bn
On 9 March 2023, DFDS issued two tranches of senior un-
secured bonds totalling NOK 1,500m. A senior unsecured
bond of NOK 1,000m was issued with maturity on 16
March 2026, a coupon of 3-month NIBOR + 225 bps, and
priced at par. In addition, a senior unsecured bond of
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NOK 500m was issued with maturity on 16 March 2028, a
coupon of 3-month NIBOR + 260 bps, and priced at par.
The proceeds from the bond issues was used for refinan-
cing of outstanding debt and general corporate purposes.
Major events after Q1
No major events to report.
ESG actions and plans
Environment
In February 2023, DFDS launched a Decarbonisation Man-
agement Board for the purpose of having a strategic deci-
sion forum for climate related topics. The key objective of
the Board is to ensure progress on meeting decarbonisa-
tion targets and develop green transport offerings by pri-
oritisation of resources across the Group.
The short-term reduction of emissions targeted up until
2030 is on track for both ferry and logistics activities.
Ferry initiatives are focused on continuous improvement
of the existing fleet’s fuel efficiency through operational
end technical solutions such as silicone hull paint and
changed route schedules.
Logistics initiatives are focused on increasing consumption
of available sustainable fuels such as HVO (Hydrogenated
Vegetable Oil), deployment of e-trucks, and installation of
solar panels on warehousing and distribution centre
rooftops.
More information on emission reductions are available in
the Division sections.
Social
Diversity & Inclusion
In Q1 2023, the total female workforce representation in-
creased one ppt to 24% compared to Q1 2022. The in-
crease was due to increasing representation for both non-
office workers that increased from 12% in Q1 2022 to
13% in Q1 2023, and office workers that increased from
43% in Q1 2022 to 44% in Q1 2023.
The female representation amongst managers increased
from 15% in Q1 2022 to 16% in Q1 2023 whilst the repre-
sentation at senior management level decreased from
16% in Q1 2022 to 15% Q1 in 2023.
The strategic focus on Diversity, Equity and Inclusion is
supported by divisional target setting, talent and pipeline
focus, as well as diversity and bias training that all con-
tribute to awareness and manager accountability.
Safety
For sea-based operations, the lost-time injury frequency
(LTIF) increased to 4.3 in Q1 2023 from 3.8 in Q1 2022.
The lost-time injury frequency (LTIF) for the land-based
operation was 10.8 in Q1 2023 and compared to 10.9 in
Q1 2022. The majority of both sea- and land-based inci-
dents are of a behavioural nature where primarily inatten-
tion has been identified as the root cause. Root cause
analysis of near-miss accidents are shared internally via
safety alerts.
In Q1 2023, we were deeply saddened by the demise of a
third party truck driver following a fatal injury in an inci-
dent on our premises in the Ghent port terminal. The inci-
dent occurred in connection with the decoupling of a
trailer. Learnings from the incident have been distributed
as safety alerts to all relevant stakeholders to increase
awareness and emphasise the importance of always com-
plying with the prescribed safety procedures. The incident
has also been investigated by the authorities.
Governance
Starting in 2023, targets for several key ESG drivers - CO2
emissions, safety, and female representation - have been
added as mandatory components in the bonus program
comprising more than 400 managers and employees.
The number of reported whistle-blower cases increased to
16 in Q1 2023 from 11 in Q1 2022. All cases are investi-
gated by relevant managers and/or local HR. Most re-
ported incidents have a lower level of gravity and main
sanctions on closed cases have been to address unwanted
behaviour and emphasise the importance of acting in ac-
cordance with DFDS’ Code of Conduct.
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Financial performance
Revenue
The Group’s Q1 revenue was DKK 6,341m, an increase of
8.6% compared to 2022.
The Ferry Division’s Q1 revenue increased 9.7% to
DKK 3,820m driven by 64% higher passenger revenue as
the recovery from Covid-19 continued in Q1. Freight ferry
revenue was overall on level with last year.
The Logistics Division’s Q1 revenue increased 6.9% to
DKK 2,849m driven mainly by revenue added from the ac-
quisitions of Lucey Transport Logistics and McBurney
Transport Group.
EBITDA
The Group’s Q1 EBITDA increased 23% or DKK 186m to
DKK 1,007m following higher earnings in both divisions.
Ferry Division’s Q1 EBITDA increased 21% or DKK 128m to
DKK 727m. The EBITDA for freight ferry activities in-
creased 4% to DKK 717m while the EBITDA for passenger
activities across the network increased DKK 100m to
DKK 9m from DKK -91m in 2022. Q1 is the low season
quarter for the passenger activity.
Logistics Division’s Q1 EBITDA increased 38% or DKK 83m
to DKK 299m following higher results for both Dry Goods
and Cold Chain activities as well as a positive impact from
acquisitions.
EBITA and EBIT
Depreciation in Q1 of DKK 605m was 4% or DKK 22m
higher than last year. The increase was driven mainly by
the acquisitions of Lucey Transport Logistics and McBur-
ney Transport Group.
The Group’s Q1 EBITA increased 69% or DKK 164m to DKK
403m. Amortisation in Q1 increased 29% to DKK 41m fol-
lowing the acquisitions of Lucey Transport Logistics and
McBurney Transport Group.
The Group’s Q1 EBIT increased 75% or DKK 155m to
DKK 362m.
Financial items
Total net financial items in Q1 was a cost of DKK 133m,
an increase of 127% or DKK 75m compared to Q1 2022
that was due primarily to a net interest cost increase of
DKK 61m. Interest-bearing debt increased 6% and the av-
erage borrowing rate almost doubled. Lease liabilities in-
creased 18% and the lease interest rate also increased.
Profit before and after tax
The Q1 profit before tax increased 54% or DKK 80m to
DKK 229m. The tax cost increased DKK 65m to DKK 99m
due to a retroactive Turkish earthquake tax of DKK 46m.
The profit for the period was DKK 130m, an increase of
14% compared to 2022.
Earnings per share
Q1 earnings per share (EPS) increased 17% to DKK 2.28
from DKK 1.94 in Q1 2022.
Cash flow and investments
The Q1 cash flow from operating activities increased 45%
to DKK 1,040m compared to Q1 2022 driven by the higher
operating result and a positive cash flow from working
capital. Net investments in Q1 totalled a negative cash
flow of DKK 1,524m resulting in a free cash flow of
DKK -484m. This included acquisitions of DKK -949m net
of acquired cash.
The Q1 cash flow from financing activities was positive by
DKK 340m, including a net loan inflow of DKK 147m, pro-
Revenue
DKK m
Q1 2023
Q1 2022
Change, %
Change
Ferry Division
3,820
3,482
9.7
338
Logistics Division
2,849
2,666
6.9
183
Non-allocated items
177
162
9.5
15
Eliminations
-505
-472
-7.2
-34
DFDS Group
6,341
5,837
8.6
503
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ceeds from a bond issue of DKK 981m, and a total distri-
bution to shareholders of DKK 581m consisting of a share
buyback of DKK 300m and a dividend of DKK 281m. The
net decrease in cash was DKK 144m and at the end of Q1
2023 cash amounted to DKK 1,045m.
The Q1 adjusted free cash flow (FCFE) was DKK 258m up
from DKK -503m in Q1 2022. The LTM Q1 adjusted free
cash flow (FCFE) was DKK 1,586m compared to
DKK 825m for 2022. The LTM adjusted free cash flow was
increased by a higher level of earnings, an increased inflow
from working capital, lower ferry investments, and a de-
crease in lease payments.
Invested capital and ROIC
Invested capital increased 10% to DKK 29.0bn at the end
of Q1 2023 compared to Q1 2022. The majority of the in-
crease was due to two logistics acquisitions.
The return on invested capital, ROIC, before acquisition in-
tangibles was 12.0% up from 6.3% in Q1 2022, and ROIC
increased to 9.0% from 4.6% in Q1 2022.
Capital structure
At the end of Q1 2023 net-interest-bearing debt (NIBD)
was DKK 15.8bn, an increase of 8% compared to the end
of 2022. The increase was due primarily to the acquisition
of McBurney Transport Group.
Financial leverage, as measured by the ratio of NIBD to
EBITDA for the last twelve months (LTM), was 2.9 at the
end of Q1 2023 compared to 2.8 at year-end 2022.
Operating profit before depreciation (EBITDA)
DKK m
Q1 2023
Q1 2022
Change, %
Change
Ferry Division
727
598
21.5
128
Logistics Division
299
216
38.3
83
Non-allocated items
-18
7
n.a.
-26
DFDS Group
1,007
821
22.6
186
EBITDA-margin, %
15.9
14.1
n.a.
1.8
EBITA and EBIT
DKK m
Q1 2023
Q1 2022
Change, %
Change
EBITDA
1,007
821
22.6
186
Associates and joint ventures
-8
-4
-83.8
-4
Profit/loss on disposals
8
4
86.2
4
Depreciation and impairment
-605
-583
-3.8
-22
EBITA
403
239
68.7
164
Amortisation
-41
-32
-28.8
-9
EBIT
362
207
74.8
155
Financial items
DKK m
Q1 2023
Q1 2022
Change, %
Change
Interests, net
-133
-72
-84.8
-61
Foreign exchange gains/losses, net
8
11
-22.0
-2
Other items, net
-9
3
n.a.
-11
Total finance, net
-133
-59
-127.0
-75
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA
2021 2022 2023
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Equity
Equity amounted to DKK 12,711m at the end of Q1 2023,
including non-controlling interests of DKK 115m. This was
a decrease of 3% compared to the end of 2022. Total
comprehensive income for Q1 2023 was DKK 152m while
transactions with owners was DKK -576m that included a
dividend of DKK 281m and share buyback of DKK 300m.
The equity ratio was 36% at the end of Q1 2023 com-
pared to 39% at year-end 2022.
Outlook 2023
The outlook visibility for 2023 remains impaired by espe-
cially the war in Ukraine and the current elevated financial
uncertainty.
The outlook for 2023 builds on multiple assumptions that
may change significantly as the year progresses.
The current consensus 2023 outlook for Europe’s GDP-
growth (Gross Domestic Product) has been raised to 0.5%
from 0.1% in February 2023 reflecting a slightly more
positive outlook. Türkiye’s GDP-growth outlook un-
changed at 3.0% (Source: Thomson Reuters).
Key freight outlook assumptions for 2023
A high share of freight volumes is expected to remain re-
silient in 2023 but as anticipated freight volumes have
declined in parts of the network through Q1.
Mediterranean freight volumes are still expected to con-
tinue to grow in 2023, especially if the rerouting of vol-
umes to Central Asian continues. As expected volumes to
and from the UK slowed down in Q1 and volumes are ex-
pected to remain on a level with or below last year for the
rest of the year. Channel’s ferry volumes are still expected
to be lower in the first half-year as a third operator
ramped up capacity through Q1 2022 and a second opera-
tor suspended sailings in most of Q2 2022.
The war in Ukraine is still expected to continue to depress
ferry volumes in the Baltic region.
The acquisition of McBurney Transport Group was com-
pleted at the end of February 2023, around one month
earlier than previously expected.
Key passenger outlook assumptions for 2023
Around 90% of the passenger EBITDA was regained in
2022 following a reduction of DKK 1bn compared to the
earnings level pre Covid-19.
Passenger volumes increased as expected in Q1 as travel
restrictions remained in place through most of Q1 2022.
Volumes are still expected to continue to recover in Q2,
but at a lower rate than in Q1, as travel in general was
still ramping up through Q2 in 2022. Passenger earnings
are still expected to overall increase in 2023.
Revenue outlook
The Group’s revenue is overall still expected to remain at
the same level as 2022. The Ferry Division’s revenue
growth is still expected to be driven mainly by rate in-
creases to cover higher operating costs and by volume
growth in the Mediterranean network. Channel’s freight
revenue is still expected to decrease due to a negative
Outlook 2023
DKK m
Outlook 2023
2022
Revenue growth
On level
26,873
EBITDA
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
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full-year impact of the current overcapacity on the Dover
Strait. Passenger revenue is expected to increase. In addi-
tion, revenue from bunker surcharges is contingent on de-
velopment in oil prices that at the end of Q1 2023 was be-
low last year at the same time.
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 will increase revenue.
Earnings outlook - unchanged
Based on the above assumptions, the Group’s EBITDA is
still 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 still expected to amount to around
DKK 1.6bn in 2023:
• No purchases of new or second-hand ferries are
expected
• Dockings and ferry upgrades, including energy 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.
The purchase price of McBurney Transport Group was
DKK 1.2bn which was in line with the investment outlook
for acquisitions.
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.
2023
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Q1 2023 interim report / p 11
Growing energy production from solar panels
In Q1 2023, solar panel installations in the cold chain
facility in Neuenkirchen-Vörden in Germany were completed.
The annual electricity production capacity is in total ex-
pected to grow to 2.1 MKwH in 2023 from 1.5 MKwH in
2022.
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Q1 2023 interim report / p 12
• Freight volumes lowered by war in
Ukraine and Channel overcapacity
• Passenger recovery continued
• 7% lower CO2 emissions per GT
nautical mile
Q1 volumes and activity changes
Total Q1 freight volumes decreased 9.1% compared to Q1
2022 driven by significant decreases on the Baltic Sea and
the Channel. Baltic Sea volumes were 19.7% lower
following a negative impact from the war in Ukraine.
Channel volumes were down 13.8% as the total market
contracted by 6.3% and market share was reduced by the
ramp-up of capacity through Q1 2022 to three ferries by a
ferry operator that had entered in 2021. In addition,
volumes were compared to 2022 lowered by a ferry
operator’s suspension of sailings from mid-March 2022.
Volumes in the North Sea network were down 2.8% due to
mainly lower fruit/vegetable exports to the UK from the
Continent as high energy prices lowered production.
Mediterranean volumes were 3.5% above 2022 adjusted
for the closure of the Izmir-Tarragona route at the end of
2022. The earthquake in Türkiye had a temporary
negative impact on Q1 volumes.
Ferry Division
Ferry Division
2023
2022
2022-23
2022
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full Year
Revenue
3,820
3,482
4,544
4,753
4,052
17,170
16,831
Freight
3,312
3,172
3,752
3,503
3,423
13,990
13,849
Passenger
508
310
793
1,250
629
3,180
2,982
Operating costs
-2,248
-2,130
-2,520
-2,541
-2,349
-9,659
-9,541
Ferry operations
-527
-457
-397
-505
-528
-1,956
-1,886
Bunker
-752
-817
-1,135
-1,135
-942
-3,965
-4,030
Port terminal operations
-793
-722
-814
-765
-690
-3,062
-2,991
Transport and warehouse solutions
-176
-134
-174
-137
-190
-676
-634
Employees
-630
-544
-601
-609
-609
-2,449
-2,364
Sales, general and administration
-216
-209
-206
-293
-235
-949
-943
EBITDA
727
598
1,218
1,310
859
4,113
3,984
Freight
717
689
944
722
728
3,112
3,083
Passenger
9
-91
274
587
131
1,001
901
Other income/costs, net
-4
-2
-2
-5
-3
-13
-11
Depreciation and impairment
-430
-435
-456
-442
-445
-1,773
-1,779
EBITA
293
161
760
863
411
2,326
2,194
Amortisation
-9
-10
-10
-10
-9
-38
-38
EBIT
283
151
750
854
401
2,288
2,156
Invested capital, average
21,404
20,780
20,796
20,839
21,265
21,103
20,931
EBITDA-margin, %
19.0
17.2
26.8
27.6
21.2
24.0
23.7
EBITA-margin, %
7.7
4.6
16.7
18.2
10.1
13.5
13.0
EBIT-margin, %
7.4
4.3
16.5
18.0
9.9
13.3
12.8
Gross Capex (excl. acquisitions and leases)
438
836
328
621
247
1,633
2,031
ROIC before acquisition intangibles, %, LTM
13.2
6.1
8.5
11.9
12.6
13.2
12.6
ROIC, %, LTM
10.5
4.7
6.6
9.4
10.0
10.5
10.0
Average number of employees
6,327
-
-
-
-
6,026
6,138
Number of ferries
65
-
-
-
-
65
64
Lane metres, '000
9,647
10,617
11,523
9,915
9,692
40,777
41,746
North Sea*
3,508
3,625
3,701
3,465
3,421
14,095
14,212
Mediterranean
1,345
1,363
1,426
1,329
1,448
5,548
5,566
Channel
3,993
4,629
5,410
4,220
3,904
17,527
18,164
Baltic Sea
802
999
986
900
918
3,607
3,804
Capacity utilisation freight, %
59
66
68
56
57
60
61
Number of cars, '000
152
100
309
508
208
1,176
1,124
Passengers, '000
619
283
984
1,704
801
4,108
3,772
* Includes volumes for the routes Oslo-Frederikshavn-Copenhagen and Amsterdam-Newcastle.
Definitions on page 30.
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Q1 2023 interim report / p 13
Total freight capacity utilisation was 59%, a decrease of 7
ppt compared to Q1 2022 on account of primarily the
lower Baltic and Channel volumes. The Mediterranean net-
work’s capacity utilisation was up 3 ppt.
A new freight ferry route between Izmir and Sète was
opened on 2 April 2023 with initially one freight ferry de-
ployed. The route replaces the Izmir-Tarragona route that
was closed at the end of 2022.
Total Q1 passenger volumes more than doubled to 619k
from 283k in Q1 2022 as volumes recovered from the
Covid-19 travel restrictions that were still in place in most
markets through Q1 2022. The Q1 2023 volumes were at
index 85 compared to Q1 2019. Volumes on the Baltic Sea
as well as on the Norway-Denmark and Netherlands-UK
routes were above 2019. Channel volumes were compared
to 2019 at index 73 which was in line with the index for
the total Dover Strait market.
Financial performance
Q1 revenue increased 9.7% to DKK 3,820m compared to
2022 driven by 63.8% higher passenger revenue following
the volume recovery while freight ferry revenue was on a
level with 2022. Freight ferry revenue was reduced by the
lower volumes but offset partly by rate increases in all
route networks, except for the Channel, and partly by ad-
ditional revenue from bunker surcharges due to higher oil
prices in the first two months of the quarter.
EBITDA increased 21% or DKK 128m to DKK 727m. The
EBITDA from passenger activities increased DKK 100m to
DKK 9m and the freight ferry EBITDA increased 4% to
DKK 717m. The results for all route networks were above
last year, except for Channel that was negatively im-
pacted by the lower freight volumes and additional ferry
maintenance costs.
EBITA increased 82% or DKK 132m to DKK 293m.
The average invested capital at the end of Q1 2023 in-
creased 3% to DKK 21.4bn compared to Q1 2022. The in-
vested capital was DKK 17.3bn excluding acquisition in-
tangibles.
The return on invested capital, ROIC, before acquisition in-
tangibles was 13.2% up from 6.1% in Q1 2022, and ROIC
increased to 10.5% from 4.7% in Q1 2022.
Continued improvement of CO2 efficiency
In Q1 2023, CO2 emissions were reduced on both own and
chartered vessels deployed across the route network. Own
fleet emissions were reduced 5% to 12.4 g/CO2/GT per
nautical mile from 13.1 g/CO2/GT per nautical mile in Q1
2022. 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 Q1 2022.
Decarbonisation activities
In March 2023, a memorandum of understanding (MoU)
was signed between DFDS and the English Channel ports
to enhance collaboration on decarbonisation of maritime
traffic on the Dover Strait. The aim is to enable carbon
neutral cross-Channel shipping with zero emission bat-
tery-powered electric ferries by installing charging facili-
ties at the ports.
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’ likewise con-
tinued in partnership with stakeholders that include com-
panies in different parts of the value chain.
Social performance
The Ferry Division’s female representation increased both
on land and at sea. The land-based operation reached the
targeted 30% in Q1 2023 compared to 29% in Q1 2022.
The increase at sea was from 18% in Q1 2022 to 19% in
Q1 2023. Both areas are challenged by pockets with low
female representation: Port terminal workers on land and
within the Deck & Engine organisation at sea.
Ferry Division
2023
2022
2022-23
2022
Q1
Q1
Q2
Q3
Q4
LTM
Full Year
Representation of women, Sea, %
19
18
19
20
19
-
19
Representation of women, Land, %
30
29
30
30
30
-
30
Lost-time injury frequency (LTIF), Sea*
4.3
3.8
4.8
5.2
3.4
4.8
4.5
Lost-time injury frequency (LTIF), Land*
14.9
14.2
7.7
13.6
8.1
11.6
11.1
* 2022 ESG data excludes primeRail for LTIF figures (acquired in May 2022)
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Q1 2023 interim report / p 14
The health & safety indicator Lost-Time-Injury-Frequency
(LTIF) increased on both land and sea in Q1 2023 com-
pared to same quarter last year. Initiatives to improve
safety performance include safety awareness campaigns,
promotion of a strong safety culture, and performance re-
view meetings with local and divisional management. Fo-
cus is on locations with the highest levels of LTIF.
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Q1 2023 interim report / p 15
• Slowdown in trade between UK and
Continent/Scandinavia
• Domestic transport markets more
robust
• Continued firm demand for
warehousing and logistics solutions
Q1 overview and activity changes
Volumes between the UK and the Continent/Scandinavia
declined in Q1 compared to last year as demand from the
UK slowed down. Trade between Sweden and the Baltic
region also slowed due to the war in Ukraine. Domestic
transport volumes were generally more robust, also in the
UK and Ireland. Cold chain meat volumes were lower in
most markets while UK seafood volumes rebounded
somewhat in the quarter. The volume slowdown contri-
buted to improving the overall supply/demand balance in
the haulage market.
In anticipation of a slowdown in both dry and cold chain
transport markets, the decline in volumes was mitigated
by capacity management and balancing of transports.
Demand for contract logistics solutions, including ware-
housing, remained firm and utilisation in the new ware-
housing facilities in Sweden, the Netherlands, and the UK
progressed in line with expectations.
Financial performance
Q1 revenue increased 6.9% to DKK 2,849m compared to
2022. Revenue was at the same level as 2022 adjusted
for the acquisitions of Lucey Transport Logistics and
McBurney Transport Group.
The lower volumes decreased revenue for a number of ac-
tivities which was offset by higher contract logistics reve-
nue, new activities, and an uplift in revenue in the
Sweden-Belgium transport corridor.
Logistics Division
Logistics Division
2023
2022
2022-23
2022
DKK m
Q1
Q1
Q2
Q3
Q4
LTM
Full Year
Revenue
2,849
2,666
2,979
2,947
2,832
11,607
11,423
Dry Goods
1,562
1,418
1,618
1,553
1,569
6,302
6,158
Cold Chain
1,278
1,251
1,349
1,388
1,252
5,267
5,240
Operating costs
Transport and warehousing costs
-1,864
-1,850
-2,084
-2,045
-1,925
-7,918
-7,904
Gross profit
985
816
894
902
907
3,689
3,520
Sales, general and administration
-169
-158
-142
-116
-84
-511
-499
Employee costs
-517
-442
-478
-490
-545
-2,030
-1,955
EBITDA
299
216
274
297
278
1,148
1,066
Other income/costs, net
4
2
4
3
10
21
18
Depreciation and impairment
-163
-138
-135
-135
-149
-582
-558
EBITA
140
80
143
165
139
587
526
Amortisation
-18
-12
-12
-13
-15
-59
-52
EBIT
122
68
131
152
124
528
474
Gross profit margin, %
34.6
30.6
30.0
30.6
32.0
31.8
30.8
EBITDA-margin, %
10.5
8.1
9.2
10.1
9.8
9.9
9.3
EBITA-margin, %
4.9
3.0
4.8
5.6
4.9
5.1
4.6
EBIT-margin, %
4.3
2.5
4.4
5.2
4.4
4.6
4.1
Invested capital, average
5,988
4,418
4,676
4,934
5,205
5,291
4,797
Gross Capex (excl. acquisitions and leases)
144
68
198
138
294
774
698
ROIC before acquisition intangibles, %, LTM
14.8
13.4
15.2
14.3
14.9
14.8
14.9
ROIC, %, LTM
7.7
6.8
7.8
7.2
7.7
7.7
7.7
Average number of employees
5,159
-
-
-
-
4,601
4,544
Definitions on page 30.
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Q1 2023 interim report / p 16
Gross profit increased 21% or DKK 170m to DKK 985m
and the gross profit margin improved to 34.6% from
30.6% in Q1 2022. The increase in underlying earnings
was achieved in spite of the lower volumes due to capa-
city management, pricing, and better balancing of trans-
ports. In addition, contract logistics activities continued
overall to perform well and earnings were improved for a
number of activities with lagging performance in Q1 2022.
EBITDA increased 38% or DKK 83m to DKK 299m and
increased 21% adjusted for acquisitions.
EBITA increased 76% or DKK 60m to DKK 140m and the
EBITA-margin improved to 4.9% from 3.0% in Q1 2022.
The average invested capital increased 36% or DKK 1.6bn
to DKK 6.0bn at the end Q1 2023. The majority of the in-
crease was due to the two acquisitions. In addition, ware-
housing capacity was expanded in the Nordics. The in-
vested capital was DKK 3.9bn excluding acquisition intan-
gibles.
The return on invested capital, ROIC, before acquisition in-
tangibles was 14.8% up from 13.4% in Q1 2022, and ROIC
increased to 7.7% from 6.8% in Q1 2022.
Decarbonisation activities
In Q1 2023, 27 of 125 ordered e-trucks were deployed.
Deployment involves a detailed match of customer com-
mitment, transport need and charging infrastructure. 21
were deployed in Sweden, three in Lithuania, two in Den-
mark, and one in Belgium. Deployment is expected to
more than double by the end of Q2.
In Q1 2023, solar panels installations in Winterswijk and
Neuenkirchen-Vörden were completed increasing the ex-
pected annual electricity production capacity to 2.1
MKwH up from 1.5 MKwH in 2022.
Social performance
The share of female representation was unchanged 17%
compared to the same quarter last year. Compared to
2022, around 400 employees were added by the acquisi-
tions of ICT Transport and Lucey Transport Logistics with a
lower female representation than at DFDS.
Lost-Time-Injury-Frequency (LTIF) decreased in Q1 2023
to 10.7 from 11.2 in Q1 2022. Initiatives to further im-
prove safety performance include safety awareness cam-
paigns, promotion of a strong safety culture, and perfor-
mance review meetings with local and divisional manage-
ment. Focus is on activities and locations with the highest
levels of LTIF.
Logistics Division
2023
2022
2022-23
2022
Q1
Q1
Q2
Q3
Q4
LTM
Full Year
Representation of women, Land, %*
17
17
17
17
17
-
17
Lost-time injury frequency (LTIF), Land*
10.7
11.2
5.7
4.1
10.1
7.6
7.5
* 2022 ESG data excludes ICT Logistics Group (acquired in January 2022) and Lucey Transport Logistics (acquired in September 2022) and 2023 Q1 ESG data
excludes McBurney Transport Group (acquired in February 2023)
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Q1 2023 interim report / p 17
Management statement
Executive Board Torben Carlsen , CEO . Ka rina Deaco n , CFO
Board of directors Clau s V. Hemmi ngsen , Chai r , Klaus N yborg , Vice Chair ,
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Q1 2023 interim report / p 18
DFDS Group - Income statement
2023
2022
2022-23
2022
DKK m
Note
Q1
Q1
LTM
Full-year
Revenue
3
Costs
Ferry and other ship operation and maintenance
-1,369
-1,405
-6,390
-6,426
Port terminal operations
-815
-738
-3,167
-3,090
Transport and warehouse solutions
-1,631
-1,552
-6,736
-6,657
Employee costs
-1,255
-1,075
-4,906
-4,726
Costs of sales, general and administration
-264
-246
-1,017
-1,000
Operating profit before depreciation (EBITDA)
Share of profit/loss of associates and joint ventures
-8
-4
-17
-14
Profit/loss on disposal of non-current assets, net
Depreciation, ferries and other ships
-343
-361
-1,428
-1,447
Depreciation and impairment losses, other non-current assets
-261
-221
-971
-931
Operating profit before amortisation (EBITA)
Amortisation
-41
-32
-144
-135
Operating profit (EBIT)
Financial income
Financial costs
-155
-73
-480
-409
Profit before tax
Tax on profit
-99
-34
-184
-120
Profit for the period
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
Profit for the period
Earnings per share
Basic earnings per share (EPS) of DKK 20 , DKK
Diluted earnings per share (EPS-D) of DKK 20 , DKK
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Q1 2023 interim report / p 19
DFDS Group – Statement of Comprehensive income
2023
2022
2022-23
2022
DKK m
Q1
Q1
LTM
Full-year
Profit for the period
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations
-46
-46
Items that will not be reclassified subsequently to the Income statement
-46
-46
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
Value adjustment transferred to operating costs
-29
-21
Value adjustment transferred to financial costs
-4
-3
Value adjustment transferred to non-current tangible assets
Tax on items that may be reclassified to the Income statement
-31
-31
Foreign exchange adjustments, subsidiaries
-17
-153
-177
Items that are or may be reclassified subsequently to the Income statement
Total other comprehensive income after tax
Total comprehensive income
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
Total comprehensive income
2023
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Q1 2023 interim report / p 20
Assets
Equity and liabilities
DFDS Group - Balance sheet
2023
2022
2022
DKK m
31 March
31 March
31 Dec.
Goodwill
Other non-current intangible assets
Software
Development projects in progress
Non-current intangible assets
Land and buildings
Terminals
Ferries and other ships
Equipment, etc.
Assets under construction and prepayments
Right-of-use assets
Non-current tangible assets
Investments in associates, joint ventures and securities
Receivables
Prepaid costs
Deferred tax
Pension assets
Derivative financial instruments
Other non-current assets
Non-current assets
Inventories
Trade receivables
Receivables from associates and joint ventures
Other receivables
Prepaid costs
Derivative financial instruments
Cash
Current assets
Assets
2023
2022
2022
DKK m
31 March
31 March
31 Dec.
Share capital
Reserves
-284
-347
-284
Retained earnings
Equity attributable to equity holders of DFDS A/S
Non-controlling interests
Equity
Interest-bearing liabilities
Lease liabilities
Deferred tax
Pension and jubilee liabilities
Other provisions
Derivative financial instruments
Non-current liabilities
Interest-bearing liabilities
Lease liabilities
Trade payables
Payables to associates and joint ventures
Other provisions
Corporation tax
Other payables
Derivative financial instruments
Prepayments
Current liabilities
Liabilities
Equity and liabilities
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Q1 2023 interim report / p 21
DFDS Group - Statement of changes in equity 1 January - 31 March 2023
DKK m
Share
capital
Translation
reserve
Hedging
Reserve
Treasury
shares
Retained
earnings
Equity
attributable
to equity
holders
of DFDS A/S
Non-
controlling
interests
Total
Equity at 1 January 2023
-543
-28
Comprehensive income for the period
Profit for the period
Other comprehensive income
Total comprehensive income
Dividend paid
-293
-293
-293
Dividend on treasury shares
Share-based payments
Share buyback
-21
-279
-300
-300
Transactions with owners
-21
-554
-576
-576
Equity at 31 March 2023
-536
-49
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Q1 2023 interim report / p 22
DFDS Group - Statement of changes in equity 1 January - 31 March 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
-17
Total comprehensive income
-17
Addition related to acquisition, non-controlling interests
-1
Dividend paid
-235
-235
-235
Dividend on treasury shares
Share-based payments
Purchase of treasury shares
-2
-30
-32
-32
Transactions with owners
-2
-254
-256
-1
-256
Equity at 31 March 2022
-383
-28
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Q1 2023 interim report / p 23
DFDS Group – Statement of cash flows
2023
2022
2022-23
2022
DKK m
Note
Q1
Q1
LTM
Full-year
Operating profit before depreciation (EBITDA)
Adjustments for non-cash operating items, etc.
Change in working capital
Payment of pension liabilities and other provisions
-7
-8
-96
-97
Interest received, etc.
Interest paid, etc.
-134
-78
-446
-388
Taxes paid
-34
-69
-75
-109
Cash flow from operating activities
Investments in ferries including dockings, etc.
-392
-784
-1,355
-1,747
Sale of ferries
Investments in other non-current tangible assets
-191
-155
-1,062
-1,026
Sale of other non-current tangible assets
Investments in non-current intangible assets
-20
-14
-76
-70
Acquisition of enterprises, associates, joint ventures, and activities, net of cash acquired
4
-949
-35
-1,194
-280
Divestment of enterprises and associates
-2
-2
Other investing cash flows
-2
Cash flow from investing activities
-1,524
-953
-3,561
-2,989
Free cash flow
-484
-237
Proceed from bank loans and loans secured by mortgage in ferries
Repayment and instalments of bank loans and loans secured by mortgage in ferries
-1,259
-790
-3,101
-2,632
Proceed from issuance of corporate bonds
Repayment of corporate bonds incl. settlement of cross currency swap
-1,000
-1,000
Payment of lease liabilities
-210
-304
-869
-963
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares and share buyback
-300
-32
-300
-32
Other financing cash flows
-33
-33
Dividends paid to non-controlling interests
-3
-3
Dividends paid to equity holders of DFDS A/S
-281
-229
-511
-459
Cash flow from financing activities
-1,079
-1,203
Net cash flow
-144
-20
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
-2
-2
Cash and cash equivalents at end of period *
* At 31 March 2023 DKK 0m (31 March 2022: DKK 167m) of the cash was deposited on restricted bank accounts.
2023
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Q1 2023 interim report / p 24
Note 1 Accounting policies and significant estimates
Basis of reporting
This section provides an overview of the Groups principal accounting policies as well as new
and amended IFRS standards and interpretations.
Accounting policies
This interim report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’
as adopted by the EU and additional Danish disclosure requirements for interim reports of
listed companies. The interim report has been prepared using the same accounting policies,
judgements and estimates as for the annual report for 2022 except as described below.
Special Items
Going forward, special items will not be presented separately in the income statement, ref-
erence is made to note 2.6 of the 2022 annual report. Comparative figures have been re-
stated.
Introducing EBITA as a new sub-total
Management has introduced EBITA in the Income statement, which comprise of result before
interest, tax and amortisation.
Implementation of new or changed accounting standards and interpretations
DFDS has adopted all new, amended, or revised accounting standards and interpretations
(IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2023
none of which has had material impact on the Group’s Financial Statements.
Significant estimates
In the view of Management, the areas where accounting estimates and assessments are sig-
nificant remain the same as per DFDS’ latest annual report. However, considering the war in
Ukraine and the current macro-economic environment certain significant estimates have
been revisited in Q1 2023 compared to year-end 2022. The review did not give rise to a
change in estimates.
In the preparation of the Interim Report, Management undertakes several accounting esti-
mates and assessments and makes assumptions which provide the basis for recognition and
measurement of the assets, liabilities, revenues and expenses of the Group and the Parent
Company. These estimates, assessments and assumptions are based on historical experi-
ence and other factors which Management considers reasonable under the circumstances,
but which by their nature are uncertain and unpredictable. The assumptions may be incom-
plete or inaccurate, and unanticipated events or circumstances may occur, for which reason
the actual results may deviate from the applied estimates, assessments, and assumptions.
Impairment considerations due to the war in Ukraine and current macro environment
Impairment testing is undertaken at year-end unless indications of impairment occur during
the year. In Q1 2023 Management has revisited forecasts for all cash generating units
(CGUs) and concludes that no impairments nor reversals of prior year impairments are nec-
essary.
2023
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Q1 2023 interim report / p 25
Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1 2023
External revenue
3,511
2,827
3
6,341
Intragroup revenue
309
22
174
505
Total revenue
3,820
2,849
177
6,846
Operating profit (EBITDA)
727
299
-18
1,007
Operating profit (EBIT)
283
122
-43
362
Invested capital, average
21,404
5,988
875
28,267
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1 2022
External revenue
3,186
2,648
3
5,837
Intragroup revenue
296
17
158
472
Total revenue
3,482
2,666
162
6,309
Operating profit (EBITDA)
598
216
7
821
Operating profit (EBIT)
151
68
-12
207
Invested capital, average
20,780
4,418
699
25,897
2023
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Q1 2023 interim report / p 26
Note 3 Revenue
All material revenue is recognised when each separate obligation in the customer contract is
fulfilled following the "over-time principle". Most transports carried out by the Ferry Division
are characterised by short delivery time (most sailings are less than 30 hours while sailings
to/from Türkiye are up to 72 hours). Transports carried out by Logistics Division can take de-
livery over a longer period, but the impact is insignificant.
On board sales is recognised according to the “a point in time” principle and amount to DKK
275m (Q1 2022: DKK 163m).
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 88m (Q1 2022: DKK 124m).
Q1 2023
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
1,327
-
0
1,327
Mediterranean
1,140
-
0
1,140
English Channel
725
-
0
725
Baltic Sea
319
-
0
319
Continent
-
1,176
0
1,176
Nordic
-
1,014
0
1,014
UK/Ireland
-
636
0
636
Other
0
0
3
3
Total
3,511
2,827
3
6,341
Product and services
Seafreight and shipping logistics solutions
2,578
0
0
2,578
Transport solutions
169
2,707
0
2,877
Passenger seafare and on board sales
508
0
0
508
Terminal services
144
2
0
146
Charters
77
11
0
88
Agency and other revenue
35
106
3
144
Total
3,511
2,827
3
6,341
Q1 2022
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
1,138
-
0
1,138
Mediterranean
1,010
-
0
1,010
English Channel
717
-
0
717
Baltic Sea
321
-
0
321
Continent
-
982
0
982
Nordic
-
1,082
0
1,082
UK/Ireland
-
584
0
584
Other
0
0
3
3
Total
3,186
2,648
3
5,837
Product and services
Seafreight and shipping logistics solutions
2,339
12
0
2,350
Transport solutions
119
2,479
0
2,598
Passenger seafare and on board sales
310
0
0
310
Terminal services
236
2
0
237
Charters
118
6
0
124
Agency and other revenue
64
150
3
218
Total
3,186
2,648
3
5,837
2023
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Q1 2023 interim report / p 27
Note 4 Acquisition of enterprises and sale of activities
2023
McBurney Transport Group
On 28 February 2023, the acquisition of McBurney Transport Group based in Northern Ire-
land was completed and the DFDS Group obtained control as from this date. The acquisition
is included in the Logistics Division.
The company is focused on moving cold chain and dry goods in trailers by road and ferry be-
tween island of Ireland and the UK. The acquisition of McBurney Transport Group is aligned
with DFDS’ strategic focus on cold chain logistics. It overlaps with existing activities in the
region and offers opportunities to connect with other parts of DFDS’ pan-European transport
network.
DFDS paid DKK 1,178m for the acquired company. In addition an earn-out agreement was
entered into according to which seller is entitled to additional payment based on the McBur-
ney Transport Groups’ financial performance for the following 12 months period after the
acquisition. Trade receivables have been recognised at the acquisition date at a fair value of
DKK 236m equal to their face value.
Due to the acquisition date being 28 February 2023 the above purchase price allocation is
preliminary and will be subject to adjustments on several items in the opening balance.
In connection with the acquisition DFDS has measured identifiable intangible assets i.e., cus-
tomer relationships etc. which are recognised in the acquisition balance sheet at their fair
value. The preliminary fair value is DKK 354m at acquisition date.
Following recognition of acquired identifiable assets and liabilities at their fair value, the
goodwill related to the acquisition is preliminarily measured at DKK 384m.
DKK m
Preliminary fair value at
acquisition date
Non-current intangible assets
354
Land and buildings
87
Equipment etc.
331
Inventories
4
Trade receivables including work in progress services
236
Other receivables
33
Cash at hand and in bank
229
Deferred tax liability
-119
Interest bearing debt
-155
Trade payables
-124
Other liabilities
-66
Net assets acquired
811
Goodwill
384
Total purchase price
1,195
Contingent consideration assumed
-17
Cash and bank balances acquired
-229
Cash flow impact from acquisition
949
2023
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Q1 2023 interim report / p 28
Note 4 Acquisition of enterprises and sale of activities (contin-
ued)
The goodwill represents primarily the value of the staff and know-how taken over and ex-
pected synergies from combining the acquired Group with the existing DFDS activities and
network. The goodwill is not deductible for tax purposes.
2022
The purchase price allocation for Lucey Transport Logistics (acquired 30 September 2022)
and primeRail (acquired 10 May 2022) is still preliminary, but unchanged compared to 31
December 2022. The purchase price allocation for ICT Logistics (acquired 19 January 2022)
is finalised but unchanged compared to 31 December 2022. For further details of these ac-
quisitions, refer to the annual report for 2022.
Note 5 Fair value measurement of financial instruments
The table discloses fair value and carrying amount of financial instruments measured at fair
value in the balance sheet. Furthermore, categorisation of the valuation method according
to the fair value hierarchy is stated.
Transfers between levels of the fair value hierarchy are considered to have occurred at the
date of the event or change in circumstances that caused the transfer.
There were no transfers between the levels in the fair value hierarchy in Q1 2023.
Techniques for calculating fair values:
Derivatives
DFDS' usage of derivatives includes interest rate swaps, bunker swaps, forward exchange
contracts and currency swaps. The fair values on interest rate swaps have been calculated
by discounting the expected future interest payments. The discount rate for each interest
payment is estimated on the basis of a swap interest curve, which is calculated based on a
wide spread of market interest rates. The fair value on forward exchange contracts are
based on interest curve calculations in DFDS' Treasury system. Calculations are based on a
spread of market interest rates in the various currencies. Calculation on bunker swaps are
based on quoted forward curve from various financial institutions.
Q1 2023
Q1 2022
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
360
360
152
152
Securities (Level 3)
2
2
2
2
Financial liabilities
Derivatives (Level 2)
58
58
62
62
2023
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Q1 2023 interim report / p 29
Note 6 Supplementary financial information on
the Parent Company
As a result of DFDS A/S' issuance of corporate bonds on the Oslo Stock Exchange there is a
requirement to provide certain supplementary financial information on the Parent Company.
The following financial information has been prepared using the same accounting policies as
for the Annual Report for 2022. DFDS has adopted all new, amended or revised accounting
standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period
beginning on 1 January 2023. For further description reference is made to note 1 Accounting
policies.
The Parent Company’s revenue increased by DKK 279m, equivalent to 12% compared to Q1
2022. Operating profit before depreciation (EBITDA) increased by DKK 119m equivalent to
42% compared to Q1 2022.
Profit before tax increased by DKK 49m compared to Q1 2022.
The Parent Company’s net interest-bearing debt increased by DKK 1,588m equivalent to
22% compared to 31 December 2022.
2023
2022
2022-23
2022
DKK m
Q1
Q1
LTM
Full-year
Income statement
Revenue
2,536
2,257
11,900
11,621
Operating profit before depreciation (EBITDA)
403
284
2,777
2,658
Operating profit (EBIT)
21
-77
1,254
1,157
Financial items, net
-52
-3
403
451
Profit before tax
-31
-80
1,657
1,608
Profit for the period
-32
-79
1,654
1,608
Assets
Non-current intangible assets
455
427
-
448
Non-current tangible assets
8,500
7,950
-
8,635
Investments in subsidiaries
10,484
8,473
-
9,289
Investments in associates, joint ventures and securities
2
2
-
2
Non-current receivables from subsidiaries
35
35
-
60
Other non-current assets
156
150
-
280
Non-current assets
19,631
17,036
-
18,714
Current receivables from subsidiaries
1,011
776
-
1,064
Receivables from associates and joint ventures
22
24
-
22
Cash
375
389
-
489
Other current assets
1,595
1,430
-
1,412
Current assets
3,002
2,620
-
2,988
Total assets
22,634
19,656
-
21,702
Equity and liabilities
Equity
10,063
9,085
-
10,649
Non-current liabilities
5,595
3,952
-
4,071
Current liabilities to subsidiaries
2,193
2,122
-
1,868
Other current liabilities
4,783
4,497
-
5,114
Current liabilities
6,976
6,619
-
6,982
Total equity and liabilities
22,634
19,656
-
21,702
Equity ratio, %
44.5
46.2
-
49.1
Net interest-bearing debt
8,719
7,171
-
7,131
2023
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Q1 2023 interim report / p 30
Definitions
Operating profit before depreciation (EBITDA)
Profit before interest, tax, depreciation, amortisation, and impairment on non-current assets
Operating profit before amortisation (EBITA)
Profit before interest, tax, and amortisation
Operating profit (EBIT)
Profit before interest and tax
Operating margin, %
Operating profit (EBIT)
Revenue
× 100
Net operating profit after taxes (NOPAT)
Operating profit (EBIT) minus payable tax for the period adjusted for the tax effect of net finance cost
Invested capital
Non-current intangible and tangible assets plus net working capital (non-interest bearing current assets minus non-interest bearing current liabilities) minus
pension and jubilee liabilities and other provisions
Net Interest-bearing debt (NIBD)
Interest-bearing liabilities (excluding provision for pensions) minus interest-bearing assets minus cash and securities
LTM
Last twelve months
Acquisition intangibles
Intangible assets recognised in connection with acquiring enterprises and activities (Goodwill and Other non-current intangible assets)
Return on invested capital (ROIC), %
Net operating profit after taxes (NOPAT)
Average invested capital
× 100
ROIC before acquisition intangibles, %
Net operating profit after taxes (NOPAT) excluding amortisation on acquisition intangible assets
Average invested capital excluding acquisition intangible assets
× 100
Free cash flow
Cash flow from operating activities minus cash flow from investing activities
Adjusted free cash flow (FCFE)
Free cash flow excluding acquisitions/divestments minus payment of lease liabilities and currency contracts related to leases
Return on equity, %
Profit for the period excluding non-controlling interests
Average equity excluding non-controlling interests
× 100
Equity ratio, %
Equity at end of period
Total assets
× 100
Financial leverage, times
Net Interest-bearing debt (NIBD)
EBITDA LTM incl. pro forma EBITDA for acquired companies
Earnings per share (EPS)
Profit for the period excluding non-controlling interests
Weighted average number of ordinary shares in circulation
Dividend per share
Dividend for the year
Number of shares at the end of the period
Number of ships
Owned and chartered ships, including slot charter and vessel sharing agreements
Passenger
Comprise activities related to persons travelling with or without car and who is carried on a ro-pax or passenger cruise ferry across the DFDS route network.
Rounding’s may in general cause variances in sums and percentages in this report.
2023
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Q1 2023 interim report / p 31
ESG Definitions
Total distance sailed
Total distance sailed for vessels in commercial operation
CO2 emissions per GT nautical mile (Own fleet)
Emissions measured as gCO2 per gross tonnage nautical mile for vessels in commercial operation (Own fleet)
CO2 emissions per GT nautical mile (Route network)
Emissions measured as gCO2 per gross tonnage nautical mile for vessels in commercial operation (Route network)
Total fuel consumption (Route network)
Total consumption of heavy fuel oil (HFO) and marine gas oil (MGO) for vessels in commercial operation (Route network)
Spills (>1 barrel)
Incidents of oil spills larger than one barrel into the sea from vessels in operation
Total workforce
Percentage of women in total workforce (end of period)
Non-office based
Percentage of women of total number of non-office based employees (end of period)
Office based
Percentage of women of total number of office based employees (end of period)
Senior management
Percentage of women of total number of senior management positions defined as EVPs and VPs (end of period)
Managers
Percentage of women of total number of management positions, excluding senior management, defined as positions with responsibility for at least one other
employee (end of period)
Lost time injury frequency (LTIF), sea
Number of registered work-related accidents disabling a seafarer to work for more than 24 hours per one million exposure hours
Lost time injury frequency (LTIF), land
Number of registered work-related accidents disabling a land-based employee work for more than 24 hours per one million exposure hours
Colleagues
Number of fatalities among employees caused by work-related accidents
Contractors
Number of fatalities among third-party contractors caused by work-related accidents while operating for DFDS
Representation of women on Board of Directors (AGM
elected members)
Percentage of women of total number of members of the Board of Directors, excluding staff appointed members, elected at the Annual General Meeting
Board nationality – non-Danish (AGM elected mem-
bers)
Percentage of non-Danish members of total number of members of the Board of Directors elected at the Annual General Meeting
Independent directors (AGM elected members)
Percentage of independent directors of total number of members of the Board of Directors elected at the Annual General Meeting
Attendance at Board meetings (All Board members)
Percentage of total number of Board meetings attended (Not gender specific)
Whistle-blower reporting
Number of cases of whistle-blower reports
2023
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Q1 2023 interim report / p 32
CVR 14 19 47 11
www.dfds.com
11 May 2023
Company announcement no.: 20/2023
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 12,000 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.