Q3 2023 interim report
OUTLOOK FIRMED UP
BY SOLID QUARTER
• Q3 EBITDA of DKK 1.6bn was ahead of expectations
• Strong passenger high season
• Freight performance as expected below last year
• Cash flow further improved
• EBITDA outlook firmed up to DKK 4.9-5.2bn
(DKK 4.8-5.2bn)
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 2
Q3 2023
• EBITDA on a level with 2022
• Adjusted free cash flow DKK 503m
• Financial leverage stable at 2.9x
• CO2 ferry emission intensity
lowered 4%
Outlook 2023
• EBITDA firmed up to DKK 4.9-5.2bn
• Revenue around same level as 2022
• Investments reduced to DKK 0.1bn
“We have firmed up our outlook on the
back of a solid quarter, not least a very
good passenger result. Freight markets
are currently challenging and we
continue to adapt our ferry and road
capacity to optimise utilisation.”
Torben Carlsen, CEO
Q3 revenue decreased 1.8% to DKK 7.2bn but increased
6.7% adjusted for ferry bunker surcharges. The adjusted
growth was driven by higher ferry revenue and revenue
from logistics acquisitions.
The Q3 EBITDA of DKK 1,592m was on level with Q3 2022.
The freight ferry EBITDA of DKK 535m was 26% lower than
last year due to a spike in oil price spreads in Q3 2022. Un-
derlying freight ferry earnings were on level with 2022 de-
spite lower volumes. The Q3 passenger EBITDA increased
29% to DKK 758m as results improved across the route
network. Logistics Division’s EBITDA increased 8% to
DKK 319m driven by acquisitions while underlying perfor-
mance was below last year due to lower activity levels and
one-off costs.
Year-to-date (Q1-3) revenue increased 1% to DKK 20.5bn
compared to the same period last year and Q1-3 EBITDA in-
creased 3% to DKK 4,004m. EBITDA was DKK 5,092m for
the last twelve months (LTM, 2022-23).
The Q3 adjusted free cash flow was DKK 503m and
DKK 1.69bn for LTM. Net interest-bearing debt (NIBD) was
reduced 1% from Q2 2023 on the back of the positive cash
flow.
Outlook 2023
The EBITDA outlook is firmed up to DKK 4.9-5.2bn (previ-
ously DKK 4.8-5.2bn) as Q3 financial performance was
ahead of expectations. The investment outlook, excluding
acquisitions, was reduced to DKK 0.1bn (previously DKK
1.6bn) following the sale and leaseback of three ferries an-
nounced in October 2023. The outlook is detailed on page
10.
Highlights Q3
KEY FIGURES
2023
2022
2022-23
2021-22
2022
DKK m
Q3
Q3
Change, %
LTM
LTM
Change, %
Full-year
Revenue
7,190
7,324
-2
27,014
25,914
4
26,873
Operating profit before depreciation (EBITDA)
1,592
1,591
0
5,092
4,732
8
4,974
Operating profit before amortisation (EBITA)
927
1,002
-7
2,583
2,459
5
2,603
Operating profit (EBIT)
888
968
-8
2,420
2,329
4
2,468
Profit before tax
693
853
-19
1,860
2,021
-8
2,139
15 November 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.
Sign up for Capital Markets Day 13 December here.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 3
Key figures
2023
2022
2023
2022
2022-23
2022
DKK m
Q3
Q3
Q1-Q3
Q1-Q3
LTM
Full-year
Income statement
Revenue
7,190
7,324
20,472
20,331
27,014
26,873
Ferry Division
4,506
4,753
12,503
12,779
16,555
16,831
Logistics Division
2,985
2,947
8,923
8,591
11,755
11,423
Non-allocated items
185
166
539
481
683
624
Eliminations
-487
-542
-1,493
-1,520
-1,978
-2,006
Operating profit before depreciation
(EBITDA)
1,592
1,591
4,004
3,886
5,092
4,974
Ferry Division
1,294
1,310
3,124
3,125
3,983
3,984
Logistics Division
319
297
963
787
1,241
1,066
Non-allocated items
-21
-16
-83
-27
-132
-76
Operating profit before amortisation
(EBITA)
927
1,002
2,095
2,115
2,583
2,603
Operating profit (EBIT)
888
968
1,968
2,016
2,420
2,468
Financial items, net
-195
-115
-486
-255
-560
-329
Profit for the period
658
817
1,327
1,636
1,710
2,019
Capital
Total assets
-
-
35,825
34,188
-
34,084
Equity
-
-
13,825
12,753
-
13,135
Net interest-bearing debt
-
-
15,038
14,038
-
14,109
Invested capital, end of period
-
-
29,242
27,125
-
27,554
2023
2022
2023
2022
2022-23
2022
DKK m
Q3
Q3
Q1-Q3
Q1-Q3
LTM
Full-year
Cash flows
Cash flows from operating activities
1,105
1,253
3,194
3,455
4,220
4,480
Cash flows from investing activities
-411
-986
-2,188
-2,498
-2,679
-2,989
Free cash flow
695
266
1,006
957
1,541
1,491
Adjusted free cash flow
503
271
1,362
500
1,688
825
Key operating and return ratios
Average number of employees (FTE)
-
-
13,035
11,351
12,215
11,510
Revenue growth (reported), %
-1.8
62.3
0.7
60.1
0.5
47.0
EBITDA-margin, %
22.1
21.7
19.6
19.1
18.8
18.5
EBITA-margin, %
12.9
13.7
10.2
10.4
9.6
9.7
EBIT-margin, %
12.3
13.2
9.6
9.9
9.0
9.2
Return on invested capital (ROIC), %
-
-
8.0
8.4
8.0
8.7
ROIC BAI, %
-
-
10.9
11.4
10.9
11.7
Return on equity, %
-
-
-
-
13.0
16.4
Key capital and per share ratios
Financial leverage, times
-
-
2.9
2.9
2.9
2.8
Equity ratio, %
-
-
38.6
37.3
-
38.5
Earnings per share (EPS), DKK
11.72
14.21
23.46
28.38
30.16
35.09
Dividend paid per share, DKK
-
4.00
5.00
8.00
5.00
8.00
Number of shares, end of period, '000
-
-
58,632
58,632
-
58,632
Share price, DKK
-
-
233.2
197.9
-
256.4
Definitions on page 32.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 4
ESG key figures
2023
2022
2023
2022
2022-23
2022
Unit
Q3**
Q3*
Q1-Q3**
Q1-Q3*
LTM
Full-year*
Environmental data (Ferry)
Total distance sailed
Nautical
miles
1,445,716
1,463,029
4,251,597
4,388,155
5,703,061
5,839,619
CO2 emissions
CO2 emissions per GT nautical mile (Own fleet)
gCO2
12.0
12.3
12.1
12.6
12.2
12.5
CO2 emissions per GT nautical mile (Route network)
gCO2
12.2
12.7
12.3
13.1
12.4
13.0
Energy consumption
Total fuel consumption (Route network)
Tonnes
185,705
200,706
556,194
615,018
766,850
799,515
Oil spills
Spills (>1 barrel)
Number
0
0
0
0
0
0
Social data
Representation of women
Total workforce:
%
-
-
23
24
-
24
Non-officed based
%
-
-
12
13
-
12
Office based
%
-
-
44
41
-
43
Senior management
%
-
-
18
15
-
16
Managers
%
-
-
19
16
-
14
Safety at sea
Lost-time injury frequency (LTIF)
Incidents/mio. hours
3.7
5.2
3.7
4.8
3.9
4.5
Safety on land
Lost-time injury frequency (LTIF)
Incidents/mio. hours
4.7
6.8
7.9
7.7
8.0
7.9
Fatalities
Colleagues
Accidents
0
0
0
0
1
1
Contractors
Accidents
0
0
1
0
0
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
100
100
99
100
99
Whistle-blower reporting
Cases
12
8
43
22
54
33
* 2022 social 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 and Q2 social data excludes McBurney Transport Group (acquired in February 2023) and Lucey Transport Logistics for LTIF figures (acquired in September 2022)
and 2023 Q3 data excludes Estron Group (Acquired in September 2023).
Definitions on page 33.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 5
Market overview
Europe’s growth outlook flattened during Q3 as higher in-
terest rates raised cost levels. Inflation declined further
but uncertainty remains elevated, also due to geopolitical
events.
Freight volumes remained generally soft in Q3 reflecting
the continued uncertainty. Energy prices increased in the
quarter but remained considerably below last year.
On a sector level, volumes from the automotive sector re-
mained robust as it continues to fulfil demand backlogs.
Conversely, transport flows of building materials de-
creased during the quarter. The trade imbalance between
continental Europe and the UK increased in the quarter
leading to an increase in empty freight units returning to
the Continent.
Türkiye’s growth flattened as measures are taken to lower
inflation by slowing domestic demand. Export volumes re-
covered somewhat from the previous quarter when manu-
facturing was held back by the election process. The ex-
port sector continues to be an important growth driver for
Türkiye and growth is expected to be underpinned by
nearshoring of manufacturing closer to Europe.
The year-on-year recovery in ferry passenger volumes
continued in Q3.
The main changes in average exchange rates in Q3 2023
vs Q3 2022 were depreciation of TRY/DKK by 38%,
NOK/DKK by 12%, and SEK/DKK by 10%.
Major events in Q3
Transport network expanded by Dutch acquisition
On 18 July 2023, DFDS entered into an agreement to ac-
quire 100% of the share capital of the Estron Group, a
Dutch provider of road transport and warehousing based
in Rotterdam, Netherlands. The price of the shares corre-
sponds to a stand-alone enterprise value/EBITDA-multiple
of around 6x excluding synergies.
The company has 130 employees and the annual revenue
in 2022 was EUR 50m. Estron Group expands DFDS’
transport network by adding road transport capacity to
the existing full-load operation to and from the UK that
combines road and ferry transport. In addition, Estron
Group’s part-load and warehousing operations comple-
ments DFDS’ similar operation in Wijchen, Netherlands.
The acquisition is expected to generate both commercial
and operational synergies.
The transaction was closed on 11 September 2023.
Turkish competition clearance obtained for possible
transaction
On 28 July 2023, DFDS obtained competition clearance
for a possible acquisition of Ekol Logistics’ international
road haulage activities. The filing was submitted to the
Turkish Competition Authority (TCA) in October 2022.
The filing was made as part of a strategic dialogue be-
tween DFDS and Ekol Logistics, a major Turkish transport
and logistics company. A due diligence process is ongoing.
Potential transaction terms are subject to Board approval.
Ferry network expansion to Strait of Gibraltar
On 17 September 2023, DFDS entered into an agreement
to acquire FRS Iberia/Maroc, a division of the German
short-sea ferry company FRS GmbH & Co. KG. FRS Ibe-
ria/Maroc operates three short-sea ferry routes across the
Strait of Gibraltar connecting Spain and Morocco. The
routes are expected to transport 2.3m freight lane metres,
1.9m passengers, and 370k cars in 2023.
The acquisition expands the Mediterranean route network
that today already connects Europe with Türkiye and Tu-
nisia, respectively. The region’s organic market growth is
expected to continue to exceed growth levels in northern
Europe underpinned by nearshoring of manufacturing sup-
ply chains closer to end markets in Europe.
FRS Iberia/Maroc’s key expected financials for 2023 are
revenue of DKK 1.0-1.2bn, EBITDA-margin of 18-20%, and
Management review
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 6
EBIT-margin of 11-12%. DFDS acquires FRS Iberia/Maroc
for a debt-free price equal to an EV/EBITDA multiple of 6x
based on expected EBITDA for 2023. The transaction is ex-
pected to increase DFDS’ financial leverage, NIBD/EBITDA,
by 0.1x on a pro forma basis.
The transaction is expected to be ROIC accretive vs DFDS’
current return level and to be accretive to earnings per
share (EPS) from closing.
Closing of the transaction is subject to regulatory ap-
proval, including merger control clearance in both Spain
and Morocco.
Major events after Q3
Sale and leaseback of three freight ferries lowers asset
ownership
On 17 October 2023, DFDS entered into an agreement
with Navigare Capital to sell and leaseback three freight
ferries for a total sales price of DKK 1.46bn.
The transaction improves financial flexibility by releasing
cash and lowering the asset ownership share. By retaining
control of the assets reliability and customer service lev-
els are upheld.
The leasing period is five years starting from the day of
delivery which is expected this week. The agreement in-
cludes a right of first refusal to purchase the ferries during
the leasing period. The three ferries are Flandria Seaways,
Humbria Seaways, and Scandia Seaways built in
2020/2020/2021, respectively.
The transaction entails a net reduction of invested capital
by DKK 0.6bn and a decrease of net interest-bearing debt
(NIBD) by DKK 0.7bn. Financial leverage as measured by
NIBD/EBITDA decreases 0.15x.
The financial gain from the sale has been updated from
the initial assessment to around DKK 95m that will be re-
ported in the income statement in the Q4 2023 report as a
gain on disposal of non-current assets and included in
EBITA (Operating profit before amortisation).
CFO steps down
Karina Deacon is stepping down from her position as CFO
and member of DFDS’ Executive Board to pursue a non-ex-
ecutive career. Karina Deacon will remain in her position
until no later than end of June 2024 to ensure continuity
and a smooth transition to the new CFO. A recruitment
process for a new CFO has been initiated.
ESG actions and plans
Environment
Continued improvements in the quarter ensured that
short-term emission reductions targeted towards 2030
continues to be on track. Ferry improvements were driven
by various incremental vessel upgrades and the schedule
optimisation program “Every Minute Counts” focused on
reducing turnaround time in port terminals, and updated
schedules enabling lower speed and reduced fuel con-
sumption.
Ferry CO2 emissions per GT nautical mile were in Q3 2023
reduced 4% compared to Q3 2022 across the route net-
work.
Logistics decarbonisation initiatives were focused on fur-
ther deployment of electric trucks, installation of charging
stations, and continued development of a more robust
data foundation for the green transition. 50 electric trucks
were deployed by the end of Q3 2023.
More information on emission reduction initiatives is
available in the Division sections.
Social
Diversity, Equity & Inclusion (DE&I)
In Q3 two of the data points on representation of women
were impacted by the McBurney acquisition as total work-
force female representation decreased one ppt from 24%
in Q3 2022 to 23% in Q3 2023. Similarly, the female rep-
resentation of the non-office based workforce decreased
from 13% in Q3 2022 to 12% in Q3 2023.
The strong focus on increasing female representation in
DFDS is shown by solid increases in the remaining KPIs: of-
fice based work force up from 41% to 44%, senior man-
agement up from 15% to 18%, and managers at all levels
went from 16% to 19%.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 7
During Q3 2023, the annual employee engagement survey
MyVoice was launched providing detailed insights about
employee engagement and perception of Diversity, Equity
and Inclusion. The survey includes questions about harass-
ment and bullying at sea allowing manager follow-up ses-
sions according to DFDS’ zero tolerance policy.
Safety
DFDS has a high focus on ensuring DFDS is a safe place to
work and where employees feel secure and protected
from work related illness and injuries. Focus continues to
be on developing an effective safety culture, increase
awareness, and improve reporting and knowledge sharing.
LTIF for land-based operations decreased to 4.7 in Q3
2023 from 6.8 in Q3 2022. The lost-time injury frequency
(LTIF) for sea-based operations decreased to 3.7 in Q3
2023 from 5.2 in Q3 2022.
See divisional sections for more details.
Governance
The number of reported whistleblower cases increased to
12 in Q3 2023 from 8 in Q3 2022. The continued increase
in whistleblower reports indicates growing awareness of
especially harassment and bullying as 42% of the re-
ceived reports are in this category. All incoming cases are
handled anonymously and a non-retaliation principle is
applied.
Financial performance
Revenue
The Group’s Q3 reported revenue was DKK 7,190m, a de-
crease of 1.8% compared to 2022 but an increase of 6.7%
adjusted for bunker surcharges.
The Ferry Division’s Q3 revenue decreased 5.2% to
DKK 4,506m but increased 9.6% adjusted for bunker sur-
charges driven by 16.3% higher passenger revenue. Freight
ferry revenue, adjusted, was 6.1% above last year as sea-
freight rates and additional port terminal services offset
lower volumes.
The Logistics Division’s Q3 revenue increased 1.3% to
DKK 2,985m but decreased 13.5% adjusted for the acqui-
sitions of Lucey Transport Logistics, McBurney Transport
Group, D. R. MacLeod, and Estron Group.
The Group’s Q1-3 revenue was DKK 20,472m, an increase
of 0.7% compared to Q1-3 2022.
EBITDA
The Group’s Q3 EBITDA of DKK 1,592m was on level with
Q3 2022 as higher passenger and logistics earnings were
offset by lower freight ferry earnings.
Ferry Division’s Q3 EBITDA decreased 1% DKK 1,294m.
The EBITDA for freight ferry activities decreased 26% to
DKK 535m due to a negative impact from a reduction in
oil price spreads compared to the exceptional and tempo-
rary spike in spread levels in Q3 2022. The freight contri-
bution was on level with last year excluding bunker as
rate increases and cost savings offset 4.5% lower vol-
umes.
The EBITDA for passenger activities across the network in-
creased 29% to DKK 758m driven by higher volumes, in-
creased revenue per passenger, bunker cost savings, and a
one-off impact from reversal of a provision related to
Covid-19.
Logistics Division’s Q3 EBITDA increased 6% to DKK 319m
and decreased 21% adjusted for a positive earnings im-
pact from acquisitions. Around half of the adjusted de-
crease was due to one-off costs related to mainly a clo-
sure and restructuring of the Bruges cold chain operation
Revenue
DKK m
Q3 2023
Q3 2022
Change, %
Change
Ferry Division
4,506
4,753
-5.2
-247
Logistics Division
2,985
2,947
1.3
38
Non-allocated items
185
166
11.8
20
Eliminations
-487
-542
10.1
55
DFDS Group
7,190
7,324
-1.8
-134
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 8
and a bad debt provision. The remainder of the decrease
was driven by lower road transport activity levels for both
dry and cold chain goods.
The Group’s Q1-3 EBITDA increased 3% to DKK 4,004m
and EBITDA for the last twelve months was DKK 5,092m.
EBITA and EBIT
Depreciation in Q3 of DKK 656m was 12% or DKK 69m
higher than last year driven mainly by acquisitions.
The Group’s Q3 EBITA decreased 7% or DKK 73m to
DKK 927m. Amortisation in Q3 increased 18% to
DKK 40m due to acquisitions. Q1-3 EBITA decreased 1%
to DKK 2,095m.
The Group’s Q3 EBIT decreased 8% or DKK 80m to DKK
888m and for Q1-3 EBIT decreased 2% to DKK 1,968m.
Financial items
Total net financial items in Q3 was a cost of DKK 195m,
an increase of 69% or DKK 79m compared to Q3 2022.
The net interest cost increased DKK 90m as interest-bear-
ing financial debt decreased 1% compared to last year
while the average borrowing rate increased from 1.6% to
4.5%. Lease liabilities increased 21% compared to last
year while the lease interest rate increased from 3.5% to
4.0%.
Total net financial items in Q1-3 was a cost of DKK 486m,
an increase of 91% or DKK 231m compared to Q1-3 2022.
Profit before and after tax
The Q3 profit before tax decreased 19% or DKK 160m to
DKK 693m. The tax cost was DKK 35m and the profit for
the period was DKK 658m, a decrease of 19% compared
to 2022.
The Q1-3 profit before tax decreased 16% to DKK 1,482m
and the Q1-3 profit for the period was DKK 1,327m.
Earnings per share
Q3 earnings per share (EPS) decreased 18% to DKK 11.72
from DKK 14.21 in Q3 2022, and for Q1-3 EPS decreased
17% to DKK 23.46.
Cash flow and investments
The Q3 cash flow from operating activities of DKK 1,105m
was reduced by a negative cash flow from working capital
of DKK 295m in the quarter. This was mainly due to pas-
senger prepayments in Q2 ahead of the Q3 high season
and a negative impact from bunker inventories. Moreover,
net finance payments increased. Net Q3 investments to-
talled a negative cash flow of DKK 411m resulting in a
positive free cash flow of DKK 695m. This included a cash
flow of DKK -34m related to acquisitions.
The Q3 cash flow from financing activities was negative
by DKK 606m, including a net loan outflow of DKK 373m
and payment of lease liabilities of DKK 228m. The net
increase in cash was DKK 89m and at the end of Q3 2023
cash amounted to DKK 1,182m.
The Q3 adjusted free cash flow (FCFE) was DKK 503m
compared to DKK 269m in Q3 2022. The LTM Q3 adjusted
free cash flow (FCFE) was DKK 1,688m compared to
DKK 825m for full-year 2022.
The Q1-3 cash flow from operating activities was
DKK 3,194m and the free cash flow was DKK 1,006m. Net
investments in Q1-3 was an outflow of DKK 2,188m, in-
cluding acquisitions of DKK 1,016m. The cash flow from fi-
nancing activities was a net outflow of DKK 1,014m bring-
ing the net cash flow for Q1-3 to an outflow of DKK 8m.
The Q1-3 adjusted free cash flow (FCFE) was DKK 1,352m
compared to DKK 500m in Q1-3 2022.
Invested capital and ROIC
Invested capital increased 8% to DKK 29.2bn at the end of
Q3 2023 compared to Q3 2022. The majority of the in-
crease was due to logistics acquisitions and chartering of
ferries, including contract extensions.
The return on invested capital before acquisition intangi-
bles, ROIC BAI, was 10.9% compared to 11.4% for Q3
2022. ROIC was 8.0% compared to 8.4% for Q3 2022.
Capital structure
At the end of Q3 2023 net-interest-bearing debt (NIBD)
was reduced 1% to DKK 15.0bn from the end of Q2 2023.
NIBD was 7% above the end of 2022 due to mainly the ac-
quisition of McBurney Transport Group completed in
Q1 2023.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 9
Financial leverage, as measured by the ratio of NIBD to
EBITDA for the last twelve months (LTM), was 2.9 at the
end of Q3 2023 compared to 2.8 at year-end 2022. The
leverage was unchanged from the end of Q2 2023.
Equity
Equity amounted to DKK 13,825m at the end of Q3 2023,
including non-controlling interests of DKK 93m, an in-
crease of 5% compared to the end of 2022. Total compre-
hensive income for Q1-3 2023 was DKK 1,256m while
transactions with owners was DKK -542m, including a
dividend of DKK 281m and a share buyback of DKK 300m.
The equity ratio was 39% at the end of Q3 2023 which
was on level with year-end 2022.
Operating profit before depreciation (EBITDA)
DKK m
Q3 2023
Q3 2022
Change, %
Change
Ferry Division
1,294
1,310
-1.2
-16
Logistics Division
319
297
7.5
22
Non-allocated items
-21
-16
n.a.
-5
DFDS Group
1,592
1,591
0.1
1
EBITDA-margin, %
22.1
21.7
n.a.
0.4
EBITA and EBIT
DKK m
Q3 2023
Q3 2022
Change, %
Change
EBITDA
1,592
1,591
0.1
1
Associates and joint ventures
-7
-2
n.a.
-5
Profit/loss on disposals
-2
1
n.a.
-3
Depreciation and impairment
-656
-587
-11.7
-69
EBITA
927
1,002
-7.4
-74
Amortisation
-40
-34
-17.9
-6
EBIT
888
968
-8.3
-80
Financial items
DKK m
Q3 2023
Q3 2022
Change, %
Change
Interests, net
-175
-87
-101.0
-88
Foreign exchange gains/losses, net
-15
-24
38.1
9
Other items, net
-5
-5
-12.1
-1
Total finance, net
-195
-115
-68.9
-79
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q1 Q2 Q3 Q4
DKK m
DFDS GROUP - EBITDA
2021 2022 2023
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 10
Outlook 2023
The outlook for 2023 builds on multiple assumptions that
may still change until year-end.
Key freight outlook assumptions for 2023
Q4 freight ferry volumes are overall expected to be on
level with last year.
Logistics’ activity levels are expected to be below last
year’s levels.
Key passenger outlook assumptions for 2023
Q4 passenger volumes are expected to be higher com-
pared to last year.
Revenue outlook
The Group’s revenue is overall still expected to remain at
around the same level as 2022 as higher passenger and
logistics revenue is offset by lower revenue from primarily
bunker surcharges.
Earnings outlook
The Group’s EBITDA for 2023 is expected to be within a
range of DKK 4.9-5.2bn compared to previously a range of
DKK 4.8-5.2bn (2022: DKK 5.0bn). The outlook has been
firmed up on the back of better than expected earnings in
the Ferry Division while the outlook for the Logistics Divi-
sion has been reduced in view of more challenging market
conditions. See outlook table for divisional split.
Investments
The 2023 outlook for operating investments, i.e. excluding
acquisitions and other transactions, was lowered to
around DKK 0.1bn in October 2023 from previously
DKK 1.6bn following the sale of three freight ferries for a
total of DKK 1.5bn.
The investment outlook for acquisitions is unchanged
DKK 1.2bn.
Outlook 2023
DKK m
New outlook 2023
Previous outlook 2023
2022
Revenue growth
On level
On level
26,873
EBITDA
4,900-5,200
4,800-5,200
4,955
Per division:
Ferry Division
3,775-3,975
3,650-3,900
3,966
Logistics Division
1,250-1,350
1,250-1,400
1,066
Non-allocated items
-125
-100
-76
Investments
-1,300
-2,800
-2,989
Types:
Operating
-1,600
-1,600
-1,838
Ferries: sale & purchase and new-buildings
1,500
0
-871
Acquisitions
-1,200
-1,200
-280
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 11
Various risks and uncertainties pertain to the outlook
The most important risks and uncertainties are possible ma-
jor changes in the demand for ferry services – freight and
passengers – and logistics solutions.
Such demand is to a large extent linked to the level of eco-
nomic activity and trade in primarily Europe, especially
northern Europe, and in particular the UK, as well as adja-
cent regions, particularly 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, interest
rates, and exchange rates, can furthermore impact earnings.
Future financial results may therefore differ significantly
from outlook expectations.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 12
eTruck rollout continues
50 of the total 125 ordered eTrucks are now operating in
Sweden, Denmark, Belgium, Lithuania, and Netherlands. Ger-
many is likely next. 97% of trips operated by eTrucks are
zero emission on a well-to-wheel basis as mostly green elec-
tricity is used for charging.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 13
• Passenger earnings up 29%
• Underlying freight ferry earnings on
level despite lower volumes
• Freight ferry volumes firmed up
towards end of Q3
• Negative earnings impact from
reduction in oil price spreads
• 4% lower CO2 ferry emission
intensity
Q3 volumes and activity changes
Total Q3 freight volumes decreased 4.5% compared to Q3
2022 driven mostly by lower volumes in the Baltic Sea
and Channel route networks. Baltic Sea volumes were
lowered by a negative impact from the war in Ukraine and
a reduction of capacity. Channel volumes were compared
to last year in the first two months of Q3 still impacted by
a competitor’s suspension of sailings in Q2 2022. Towards
the end of Q3 volumes were again comparable with last
year, and in September volumes were almost on level with
2022. The total Dover Strait market contracted 1.3% in
the quarter.
Ferry Division
Ferry Division
2023
2023
2023
2022
2022
2022-23
2022
DKK m
Q1
Q2
Q3
Q1-Q3
Q1-Q3
Q1
Q2
Q3
Q4
LTM
Full-year
Revenue
3,820
4,176
4,506
12,503
12,779
3,482
4,544
4,753
4,052
16,555
16,831
Freight
3,312
3,270
3,052
9,633
10,426
3,172
3,752
3,503
3,423
13,056
13,849
Passenger
508
907
1,454
2,870
2,353
310
793
1,250
629
3,498
2,982
Operating costs
-2,248
-2,188
-2,275
-6,711
-7,191
-2,130
-2,520
-2,541
-2,349
-9,061
-9,541
Ferry operations
-527
-495
-510
-1,532
-1,359
-457
-397
-505
-528
-2,060
-1,886
Bunker
-752
-713
-791
-2,256
-3,087
-817
-1,135
-1,135
-942
-3,198
-4,030
Port terminal operations
-793
-796
-809
-2,398
-2,301
-722
-814
-765
-690
-3,088
-2,991
Transport and warehouse solutions
-176
-184
-165
-525
-444
-134
-174
-137
-190
-715
-634
Employee costs
-630
-639
-668
-1,937
-1,755
-544
-601
-609
-609
-2,546
-2,363
Sales, general and administration
-216
-246
-268
-730
-708
-209
-206
-293
-235
-965
-943
EBITDA
727
1,103
1,294
3,124
3,125
598
1,218
1,310
859
3,983
3,984
Freight
717
754
535
2,006
2,355
689
944
722
728
2,735
3,083
Passenger
9
350
758
1,117
770
-91
274
587
131
1,248
901
Other income/costs, net
-4
-8
-14
-25
-8
-2
-2
-5
-3
-29
-12
Depreciation and impairment
-430
-445
-457
-1,332
-1,333
-435
-456
-442
-445
-1,777
-1,778
EBITA
293
651
823
1,766
1,784
161
760
863
411
2,177
2,194
Amortisation
-9
-9
-9
-28
-29
-10
-10
-10
-9
-38
-38
EBIT
283
642
813
1,738
1,755
151
750
854
401
2,139
2,156
Invested capital, end of period
21,390
21,310
21,613
21,613
21,113
21,026
20,566
21,113
21,418
21,613
21,418
EBITDA-margin, %
19.0
26.4
28.7
25.0
24.5
17.2
26.8
27.6
21.2
24.1
23.7
EBITA-margin, %
7.7
15.6
18.3
14.1
14.0
4.6
16.7
18.2
10.1
13.2
13.0
EBIT-margin, %
7.4
15.4
18.1
13.9
13.7
4.3
16.5
18.0
9.9
12.9
12.8
Gross Capex (excl. acquisitions and leases)
438
150
264
852
1,784
836
328
621
247
1,098
2,031
ROIC before acquisition intangibles, %, LTM
-
-
-
12.4
11.9
-
-
-
-
12.4
12.6
ROIC, %, LTM
-
-
-
9.9
9.4
-
-
-
-
9.9
10.0
Average number of employees
-
-
-
6,516
6,048
-
-
-
-
6,292
6,138
Number of ships
-
-
-
65
82
-
-
-
-
-
64
Lane metres, '000
9,647
9,795
9,455
28,897
32,054
10,617
11,523
9,915
9,692
38,589
41,746
North Sea *
3,508
3,600
3,408
10,516
10,791
3,625
3,701
3,465
3,421
13,938
14,212
Mediterranean
1,345
1,375
1,274
3,993
4,118
1,363
1,426
1,329
1,448
5,442
5,566
Channel
3,993
4,026
3,953
11,971
14,260
4,629
5,410
4,220
3,904
15,875
18,164
Baltic Sea
802
794
820
2,416
2,886
999
986
900
918
3,334
3,804
Capacity utilisation freight, %
59
56
53
56
63
66
68
56
57
56
61
Number of cars, '000
152
301
495
948
916
100
309
508
208
1,155
1,124
Passengers, '000
619
1,205
1,812
3,637
2,971
283
984
1,704
801
4,437
3,772
* Includes volumes for the routes Oslo-Frederikshavn-Copenhagen and Amsterdam-Newcastle.
Definitions on page 32.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 14
Volumes in the North Sea network were 1.5% below 2022
as automotive volumes remained robust while volumes
between Sweden and the UK declined. Mediterranean vol-
umes were 3.1% below 2022 as activity levels dipped
through the summer but volumes were back on level with
last year in September.
Total Q3 passenger volumes increased 6.4% to 1.8m com-
pared to 2022. The Q3 2023 volumes were at index 90
compared to Q3 2019. Volumes on the Baltic Sea as well
as on the Norway-Denmark and Netherlands-UK routes
were in total on a level with 2019. Channel volumes were
compared to 2019 at index 87 for DFDS which was above
the index for the total Dover Strait market.
Financial performance
Q3 revenue decreased 5.2% to DKK 4,506m compared to
2022 but increased 9.6% adjusted for bunker surcharges.
Passenger revenue increased 16.3% driven by growth in
spend and passenger volumes. Freight ferry revenue, ad-
justed, was up 6.1% as higher rates offset the revenue im-
pact of the volume decrease.
EBITDA decreased 1% to DKK 1,294m as lower freight
earnings were almost fully offset by higher passenger
earnings. The passenger EBITDA increased 29% or
DKK 171m to DKK 758m driven by the increase in the
number of passengers, higher revenue per passenger, bun-
ker cost savings, and a one-off impact from reversal of a
provision related to Covid-19. The freight ferry EBITDA de-
creased 26% to DKK 535m due to a reduction in oil price
spreads compared to the spike in 2022. Oil price spread
levels started to normalise during Q1 2023. Total freight
ferry earnings were on level with last year, adjusted for
the oil price spread impact, as higher rates and operational
cost savings offset a negative impact from lower volumes.
EBITA decreased 5% to DKK 823m following higher
depreciation.
The invested capital at the end of Q3 2023 increased 2%
to DKK 21.6bn compared to Q3 2022 mainly due to an in-
crease in right-of-use ships. The invested capital was
DKK 17.5bn excluding acquisition intangibles.
The return on invested capital before acquisition intangi-
bles, ROIC BAI, was 12.4% compared to 11.9% in Q3 2022,
and ROIC was 9.9% compared to 9.4% in Q3 2022.
Continued improvement of CO2 efficiency
The improvement of fuel efficiency continued in Q3 2023.
CO2 emissions per GT nautical mile decreased across the
entire route network, including both owned and chartered
vessels. Own fleet emissions were reduced 2.4% to 12.0
gCO2 per GT NM from 12.3 gCO2 per GT NM in Q3 2022.
Emissions from the entire route network decreased 3.9%
to 12.2 gCO2 per GT NM from 12.7 gCO2 per GT NM in Q3
2022.
Decarbonisation activities
Short-term emission reductions were achieved by incre-
mental fleet upgrades, including coating hulls with sili-
cone-based antifouling paints and hull modifications.
The schedule optimisation program continued in Q3 to re-
duce sailing speed and thereby fuel consumption and CO2
emissions.
DFDS has intensified its efforts by looking into other de-
carbonization solutions, which among others include an
electrification project with battery-powered ferries for The
Channel.
Social performance
The female representation increased for both the land-
based and the sea-based organisations within the Ferry di-
vision. In the land-based operation the female representa-
tion increased one ppt to 31% in Q3 2023 compared to
Ferry Division
2023
2023
2022
2022
2022-23
2022
Q1
Q2
Q3
Q1-Q3
Q1-Q3
Q1
Q2
Q3
Q4
LTM
Full-year
Representation of women, Sea, %
19
20
20
20
20
18
19
20
19
-
19
Representation of women, Land, %
30
31
30
30
30
29
30
30
30
-
30
Lost-time injury frequency (LTIF), Sea*
4.3
1.9
3.7
3.7
4.8
3.8
4.8
5.2
3.4
3.9
4.5
Lost-time injury frequency (LTIF), Land*
14.9
14.1
4.1
10,9
12.1
14.2
7.7
13.6
8.1
10.2
11.1
* 2022 LTIF figures excludes primeRail, acquired in May 2022
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 15
30% in Q3 in 2022. In the sea-based operation a similar in-
crease of one ppt from 19% in Q3 2022 to 20% in Q3
2023.
The land based LTIF decreased to 4.1 in Q3 2023 from
13.6 in Q3 2022. A large improvement was achieved
across DFDS’ own operated terminals where promotion of
a strong safety culture and performance review meetings
with local and divisional management are starting to im-
pact safety records. Focus going forward will be on ensur-
ing a consistent low number of incidents as well as apply-
ing insights from the data collected from the implementa-
tion of the new health & safety system.
The sea-based LTIF was reduced in both Q3 and YTD for
2023. The quarterly performance was reduced to 3.7 in Q3
2023 from 5.2 in Q3 2022. The YTD performance was re-
duced from 4.8 in 2022 to 3.7 in 2023. The sea based
Health & Safety organisation has been focusing on contin-
ued awareness, both within training and learnings from
near-miss situations.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 16
• Slowdown in transport markets
• Contract logistics markets more
robust
• One-off costs reduced earnings
• Acquisitions performing as expected
• More than 50 e-trucks now in
operation
Q3 overview and activity changes
International dry full-load volumes between Scandinavia
and the Continent remained above last year in Q3. Vol-
umes to and from the UK as well as between Sweden and
the Baltics decreased in the quarter. Transports of building
materials weakened further in the quarter.
Cold chain export meat volumes from Denmark and the
Netherlands decreased further while UK domestic seafood
volumes were more robust, although Scottish volumes
remained below last year.
Overcapacity in haulage markets raised price pressure in
the quarter as customers increased tender activity.
Activity levels for contract logistics solutions, including
warehousing, remained more firm compared to the
transport market and utilisation in the new warehousing
facilities in Sweden, the Netherlands, and the UK contin-
ued to develop in line with expectations.
Financial performance
Q3 revenue increased 1.3% to DKK 2,985m compared to
Q3 2022 and decreased 13.5% adjusted for acquisitions.
The adjusted decrease was driven by lower activity and
surcharge levels as the latter amongst other things cover
changes in fuel and energy costs. In addition, a Norwegian
cold chain activity was closed.
Gross profit increased 24% or DKK 219m to DKK 1,121m
and the gross profit margin improved to 37.6% from
30.6% in Q3 2022. The increase was driven mainly by a
Logistics Division
Logistics Division
2023
2023
2023
2023
2022
2022
2022-23
2022
DKK m
Q1
Q2
Q3
Q1-Q3
Q1-Q3
Q1
Q2
Q3
Q4
LTM
Full-year
Revenue
2,849
3,088
2,985
8,923
8,591
2,666
2,979
2,947
2,832
11,755
11,423
Dry Goods
1,562
1,586
1,506
4,653
4,590
1,418
1,618
1,553
1,569
6,222
6,158
Cold Chain
1,278
1,487
1,484
4,248
3,988
1,251
1,349
1,388
1,252
5,500
5,240
Operating costs
Transport and warehousing costs
-1,864
-1,917
-1,864
-5,644
-5,979
-1,850
-2,084
-2,045
-1,925
-7,569
-7,904
Gross profit
985
1,172
1,121
3,278
2,612
816
894
902
907
4,186
3,520
Sales, general and administration
-169
-179
-182
-531
-416
-158
-142
-116
-84
-614
-499
Employee costs
-517
-648
-620
-1,785
-1,409
-442
-478
-490
-545
-2,330
-1,955
EBITDA
299
345
319
963
787
216
274
297
278
1,241
1,066
Other income/costs, net
4
5
5
14
2
-5
4
3
10
23
12
Depreciation and impairment
-163
-180
-190
-533
-402
-132
-135
-135
-149
-682
-551
EBITA
140
169
135
443
387
79
143
165
139
582
526
Amortisation
-18
-24
-16
-59
-37
-12
-12
-13
-15
-74
-52
EBIT
122
145
118
385
350
68
131
152
123
508
474
Gross profit margin, %
34.6
37.9
37.6
36.7
30.4
30.6
30.0
30.6
32.0
35.6
30.8
EBITDA-margin, %
10.5
11.2
10.7
10.8
9.2
8.1
9.2
10.1
9.8
10.6
9.3
EBITA-margin, %
4.9
5.5
4.5
5.0
4.5
3.0
4.8
5.6
4.9
5.0
4.6
EBIT-margin, %
4.3
4.7
4.0
4.3
4.1
2.5
4.4
5.2
4.4
4.3
4.1
Invested capital, end of period
6,693
6,700
6,890
6,890
5,127
4,610
4,741
5,127
5,283
6,890
5,283
Gross Capex (excl. acquisitions and leases)
144
74
94
312
404
68
198
138
294
606
698
ROIC before acquisition intangibles, %, LTM
-
-
-
12.9
14.3
-
-
-
-
12.9
14.9
ROIC, %, LTM
-
-
-
6.5
7.2
-
-
-
-
6.5
7.7
Average number of employees
-
-
-
5,585
4,568
-
-
-
-
5,036
4,544
Definitions on page 32.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 17
positive impact from acquisitions and an increase in the
share of higher-margin contract logistics revenue.
EBITDA increased 8% to DKK 319m and decreased 21%
adjusted for acquisitions. The adjusted decrease of
DKK 61m includes one-off costs related to closure of the
Bruges cold chain office and transfer of its activities to the
organisation in the Netherlands. A bad debt provision also
lowered the result.
Earnings were moreover reduced by the volume decline in
the full-load transport market, meat volumes, and special-
ised premium transports.
EBITA decreased 18% or DKK 30m to DKK 135m and the
EBITA-margin decreased to 4.5% from 5.6% in Q3 2022.
The invested capital increased 34% or DKK 1.8bn to
DKK 6.9bn at the end Q3 2023. Invested capital added by
acquisitions amounted to DKK 1.5bn. The remaining in-
crease was primarily related to expansion of warehousing
capacity. The invested capital was DKK 4.2bn excluding
acquisition intangibles.
The return on invested capital before acquisition intangi-
bles, ROIC BAI, was 12.9% compared to 14.3% in Q3 2022,
and ROIC was 6.5% compared to 7.2% in Q3 2022.
Decarbonisation activities
The deployment of more electric trucks in several coun-
tries continued in Q3. 50 of the total 125 ordered eTrucks
are now in operation in Sweden, Denmark, Belgium, Lithua-
nia and Netherlands. The implementation team is cur-
rently working on the deployment of additional eTrucks in
Germany.
The work of installing charging capacity in key locations
continues across the network. The facilities produce green
electricity – making 97% of flows operated by eTrucks
zero emission on a Well-to-Wheels basis.
Social performance
The share of female representation within the Logistics di-
vision was reduced from 17% in Q3 2022 to 15% in Q3
2023. This decline is among other things due to acquisi-
tions during the last year. Despite the structural chal-
lenges within the industry DFDS continues to maintain a
strong and dedicated focus on Diversity & Inclusion to im-
prove minority representation.
The LTIF for Q2 2023 increased to 5.9 in Q3 2023 from 4.1
in Q3 2022. The majority of the incidents in Q3 are of a
behavioral nature with lack of focus on own safety. Main
root causes continue to be slips, trips and fall incidents.
Focus in Q4 is on behavioral incidents related to particu-
larly our haulage operation and implementation of a new
health & safety system that has started for the larger lo-
gistics sites and will continue in Q4.
Logistics Division
2023
2023
2023
2022
2022
2022-23
2022
Q1
Q2
Q3
Q1-Q3
Q1-Q3
Q1
Q2
Q3
Q4
LTM
Full-year
Representation of women, Land, %*
17
17
15
15
17
17
17
17
17
-
17
Lost-time injury frequency (LTIF), Land*
10.7
5.7
5.9
7.9
6.5
11.2
5.7
4.1
10.1
8.4
7.5
* 2022 ESG data excludes ICT Logistics Group (acquired in January 2022), Lucey Transport Logistics (acquired in September 2022) and 2023 ESG data excludes
McBurney Transport Group (acquired in February 2023) and Lucey Transport Logistics for LTIF figures. 2023 Q3 data excludes Estron Group (Acquired in Septem-
ber 2023)
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 18
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 ,
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 19
DFDS Group - Income statement
2023
2022
2023
2022
2022-23
2022
DKK m
Note
Q3
Q3
Q1-Q3
Q1-Q3
LTM
Full-year
Revenue
3
Costs
Ferry and other ship operation and maintenance
-1,389
-1,766
-4,065
-4,869
-5,622
-6,426
Port terminal operations
-835
-780
-2,476
-2,358
-3,208
-3,090
Transport and warehouse solutions
-1,636
-1,692
-4,948
-4,978
-6,627
-6,657
Employee costs
-1,409
-1,202
-4,071
-3,461
-5,336
-4,726
Costs of sales, general and administration
-327
-294
-909
-779
-1,130
-1,000
Operating profit before depreciation (EBITDA)
Share of profit/loss of associates and joint ventures
-7
-2
-20
-8
-25
-14
Profit/loss on disposal of non-current assets, net
-2
Depreciation, ferries and other ships
-368
-358
-1,068
-1,100
-1,415
-1,447
Depreciation and impairment losses, other non-current assets
-287
-229
-829
-665
-1,088
-924
Operating profit before amortisation (EBITA)
Amortisation and impairment losses, intangibles
-40
-34
-127
-99
-164
-135
Operating profit (EBIT)
Financial income
Financial costs
-200
-129
-517
-287
-644
-409
Profit before tax
Tax on profit
-35
-36
-155
-126
-149
-120
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
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 20
DFDS Group – Statement of Comprehensive income
2023
2022
2023
2022
2022-23
2022
DKK m
Q3
Q3
Q1-Q3
Q1-Q3
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
Tax on items that will not be reclassified to the Income statement
Items that will not be reclassified subsequently to the Income statement
-36
-36
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period
-89
Value adjustment transferred to operating costs
-15
-1
-110
-1
-100
Value adjustment transferred to financial costs
-4
-9
-14
Value adjustment transferred to non-current tangible assets
Tax on items that may be reclassified to the Income statement
-21
-33
-8
-41
Foreign exchange adjustments, subsidiaries
-58
-146
-1
-177
Items that are or may be reclassified subsequently to the Income statement
-78
-6
-70
-39
Total other comprehensive income after tax
-78
-6
-71
-76
Total comprehensive income
Attributable to:
Equity holders of DFDS A/S
Non-controlling interests
-1
Total comprehensive income
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 21
Assets
DFDS Group - Balance sheet
Equity and liabilities
2023
2022
2022
DKK m
Note
30 Sept
30 Sept
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 classified as held for sale
7
Total current assets
Assets
2023
2022
2022
DKK m
30 Sept
30 Sept
31 Dec.
Share capital
Reserves
-376
-324
-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
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 22
DFDS Group - Statement of changes in equity 1 January - 30 September 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
-101
-71
-71
Total comprehensive income
-101
Transactions with owners:
Acquisition, non-controlling interests
-25
-8
Dividend paid
-293
-293
-293
Dividend on treasury shares
Share-based payments
Share buyback
-21
-279
-300
-300
Transactions with owners
-21
-521
-542
-25
-567
Equity at 30 September 2023
-512
-49
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 23
DFDS Group - Statement of changes in equity 1 January - 30 September 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
-145
-33
0
Total comprehensive income
-145
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
-472
-474
-4
-478
Equity at 30 September 2022
-511
-28
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 24
DFDS Group – Statement of cash flows
2023
2022
2023
2022
2022-23
2022
DKK m
Note
Q3
Q3
Q1-Q3
Q1-Q3
LTM
Full-year
Operating profit before depreciation (EBITDA)
Adjustments for non-cash operating items, etc.
Change in working capital
-295
-176
-243
-50
-187
Payment of pension liabilities and other provisions
-6
-55
-25
-72
-50
-97
Interest received, etc.
Interest paid, etc.
-164
-95
-489
-263
-615
-388
Taxes paid
-44
-25
-131
-89
-152
-109
Cash flow from operating activities
Investments in ferries including dockings, etc.
-233
-530
-742
-1,577
-913
-1,747
Sale of ferries
Investments in other non-current tangible assets
-126
-236
-427
-667
-786
-1,026
Sale of other non-current tangible assets
Investments in non-current intangible assets
-20
-18
-57
-50
-77
-70
Acquisition of enterprises, associates, joint ventures, and activities, net of cash acquired incl. earn-outs
4
-34
-224
-1,016
-280
-1,016
-280
Divestment of enterprises and associates
-2
-2
-2
Other investing cash flows
-10
-11
-8
Cash flow from investing activities
-411
-987
-2,188
-2,498
-2,679
-2,989
Free cash flow
Proceed from bank loans and loans secured by mortgage in ferries
Repayment and instalments of bank loans and loans secured by mortgage in ferries
-387
-690
-2,182
-2,041
-2,772
-2,632
Proceed from issuance of corporate bonds
Repayment of corporate bonds incl. settlement of cross currency swap
-1,000
-1,000
-1,000
Payment of lease liabilities
-228
-226
-669
-750
-882
-963
Settlement of forward exchange contracts related to leases
Acquisition of treasury shares and share buyback
-300
-32
-300
-32
Other financing cash flows
-8
-2
-8
-33
-8
-33
Dividends paid to non-controlling interests
-3
-3
Dividends paid to equity holders of DFDS A/S
-229
-281
-459
-281
-459
Cash flow from financing activities
-606
-342
-1,014
-405
-1,811
-1,203
Net cash flow
-75
-8
-271
Cash and cash equivalents at beginning of period
Foreign exchange and value adjustments of cash and cash equivalents
-1
-2
-2
Cash and cash equivalents at end of period *
* At 30 September 2023 DKK 14m (30 September 2022: DKK 175m) of the cash was deposited on restricted bank accounts.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 25
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
As from 2023 special items will not be presented separately in the income statement, refer-
ence 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, in 2023, introduced EBITA in the income statement defined as result be-
fore 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-Q3 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-Q3 2023 Management has revisited forecasts for all cash generating units
(CGUs) and concluded that no impairments nor reversals of prior year impairments are nec-
essary.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 26
Note 2 Segment Information
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1-Q3 2023
External revenue
11,599
8,859
14
20,472
Intragroup revenue
903
64
526
1,493
Total revenue
12,503
8,923
539
21,965
Operating profit before depreciation (EBITDA)
3,124
963
-83
4,004
Operating profit before amortisation (EBITA)
1,766
443
-115
2,095
Operating profit (EBIT)
1,738
385
-155
1,968
Invested capital, end of period
21,613
6,890
738
29,242
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Q1-Q3 2022
External revenue
11,779
8,539
13
20,331
Intragroup revenue
1,001
52
468
1,520
Total revenue
12,779
8,591
481
21,851
Operating profit before depreciation (EBITDA)
3,125
787
-27
3,886
Operating profit before amortisation (EBITA)
1,784
387
-56
2,115
Operating profit (EBIT)
1,755
350
-89
2,016
Invested capital, end of period
21,113
5,127
885
27,125
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 27
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
1,251m (Q1-Q3 2022: DKK 982m).
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 267m (Q1-Q3 2022: DKK 248m).
Q1-Q3 2023
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
4,390
-
0
4,390
Mediterranean
3,394
-
0
3,394
Baltic Sea
968
-
0
968
Continent
-
3,614
0
3,614
Nordic
-
2,839
0
2,839
UK/Ireland
2,847
2,406
0
5,253
Other
0
0
14
14
Total
11,599
8,859
14
20,472
Product and services
Seafreight and shipping logistics solutions
7,421
0
0
7,422
Transport solutions
499
8,543
0
9,043
Passenger seafare and on board sales
2,870
0
0
2,869
Terminal services
443
5
0
448
Charters
267
0
0
267
Agency and other revenue
98
310
14
423
Total
11,599
8,859
14
20,472
Q1-Q3 2022
DKK m
Ferry
Division
Logistics
Division
Non-
allocated
Total
Geographical markets
North Sea
4,250
-
0
4,250
Mediterranean
3,365
-
0
3,365
Baltic Sea
1,131
-
0
1,131
Continent
-
3,398
0
3,398
Nordic
-
3,323
0
3,323
UK/Ireland
3,032
1,819
0
4,851
Other
0
0
13
13
Total
11,779
8,539
13
20,331
Product and services
Seafreight and shipping logistics solutions
7,894
20
0
7,913
Transport solutions
408
8,054
0
8,462
Passenger seafare and on board sales
2,353
0
0
2,353
Terminal services
697
4
0
702
Charters
248
0
0
248
Agency and other revenue
178
462
13
653
Total
11,779
8,539
13
20,331
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 28
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 the 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.
The preliminary purchase price allocation shows the following:
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 214m at the 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 446m.
DKK m
Preliminary fair
value at acquisi-
tion date
Non-current intangible assets
214
Land and buildings
144
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
-93
Interest bearing debt
-159
Trade payables
-123
Other current liabilities
-67
Net assets acquired
749
Goodwill
446
Total purchase price
1,195
Contingent consideration assumed
-17
Cash and bank balances acquired
-229
Fair value of the purchase price
949
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 29
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.
Other 2023 acquisitions
On 22 May 2023 it was announced that DFDS Group had acquired all activities from D.R.
MacLeod headquartered in Scotland. DFDS Group obtained control as from this date and the
acquired activities is after the acquisition included in the Logistics Division. The purchase
price for the acquired activities amounts to DKK 26m.
On 18 July 2023 it was announced that DFDS Group had entered an agreement to acquire
all shares in Estron Group headquartered in Rotterdam, Netherlands. Closing of the transac-
tion was completed on 11 September 2023. The purchase price for the acquired activities
amount to DKK 52m.
2022
The purchase price allocation for Lucey Transport Logistics (acquired 30 September 2022),
primeRail (acquired 10 May 2022) and ICT Logistics (acquired 19 January 2022) are final-
ised and unchanged compared to 31 December 2022. For further details of these acquisi-
tions, 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 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-Q3 2023
Q1-Q3 2022
DKK m
Fair value
Carrying
amount
Fair value
Carrying
amount
Financial assets
Derivatives (Level 2)
322
322
386
386
Securities (Level 3)
2
2
2
2
Financial liabilities
Derivatives (Level 2)
72
72
21
21
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 30
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, except for special items that will not be presented sepa-
rately in the income statement, reference is made to note 2.6 of the 2022 annual report.
Comparative figures have been restated. DFDS has adopted all new, amended or revised ac-
counting standards and interpretations (IFRSs) endorsed by the EU effective for the ac-
counting period beginning on 1 January 2023. For further description reference is made to
note 1 Accounting policies.
The Parent Company’s revenue decrease by DKK 147m, equivalent to 2% compared to Q1-
Q3 2022. Operating profit before depreciation (EBITDA) decreased by DKK 45m equivalent
to 2% compared to Q1-Q3 2022.
Profit before tax increase by DKK 827m compared to Q1-Q3 2022. Increase is mainly due to
dividend received from subsidiaries in 2023 of DKK 1,224m (2022: none).
The Parent Company’s net interest-bearing debt increased by DKK 723m compared to 31
December 2022.
2023
2022
2022-23
2022
DKK m
Q1-Q3
Q1-Q3
LTM
Full-year
Income statement
Revenue
8,665
8,812
11,473
11,621
Operating profit before depreciation (EBITDA)
2,059
2,104
2,613
2,658
Operating profit before amortisation (EBITA)
953
1,019
1,135
1,200
Operating profit (EBIT)
913
986
1,083
1,157
Financial items, net
992
93
1,351
451
Profit before tax
1,905
1,078
2,435
1,608
Profit for the period
1,913
1,084
2,436
1,608
Assets
Non-current intangible assets
464
440
-
448
Non-current tangible assets
6,670
8,860
-
8,635
Investments in subsidiaries
11,822
8,817
-
9,289
Investments in associates, joint ventures and securities
2
2
-
2
Non-current receivables from subsidiaries
30
62
-
60
Other non-current assets
227
281
-
280
Non-current assets
19,216
18,461
-
18,714
Current receivables from subsidiaries
993
939
-
1,064
Receivables from associates and joint ventures
23
22
-
22
Cash
638
637
-
489
Other current assets
1,448
1,520
-
1,412
Current assets
3,102
3,119
-
2,988
Assets Held for Sale
1,267
Total assets
23,585
21,580
-
21,702
Equity and liabilities
Equity
11,920
10,072
-
10,649
Non-current liabilities to subsidiaries
64
123
-
63
Other non-current liabilities
4,984
4,337
-
4,008
Non-current liabilities
5,048
4,460
-
4,071
Current liabilities to subsidiaries
2,432
1,757
-
1,868
Other current liabilities
4,184
5,291
-
5,114
Current liabilities
6,616
7,048
-
6,982
Total equity and liabilities
23,585
21,580
-
21,702
Equity ratio, %
50.5
46.7
-
49.1
Net interest-bearing debt
7,854
7,429
-
7,131
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 31
Note 7 Assets held for sale
The carrying amount of assets classified as held for sale on 30 September 2023 is DKK
1,267m (2022: none). No liabilities associated with these assets have been classified as
held for sale.
On 30 September 2023, assets held for sale referred to 3 ferries domiciled in Denmark: Flan-
dria Seaways, Humbria Seaways, and Scandia Seaways built in 2020/2020/2021, respec-
tively.
The transaction that resulted in the reclassification of assets held for sale at 30 September
2023, has been completed on 17 October 2023, see note 8 for additional information.
Note 8 Event after Balance sheet date
On 17 October 2023, the Group announced the sale and leaseback transaction of 3 ferries.
Flandria Seaways, Humbria Seaways, and Scandia Seaways were included in the transaction
with proceeds for the Group of DKK 1,467m. A gain of DKK 95m will be reported.
Subsequent to the balance sheet date, loans of DKK 872m were settled on 19 October
2023.
The leased ferries will be recognised in accordance with IFRS 16 as right of use assets and
leasing liabilities in Q4 2023.
2023
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 32
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 LTM)
Average invested capital LTM
× 100
ROIC before acquisition intangibles (ROIC BAI), %
Net operating profit after taxes (NOPAT LTM) excluding amortisation on acquisition intangible assets
Average invested capital excluding acquisition intangible assets LTM
× 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
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 33
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
Management review
Ferry
Logistics
Reports
Financials
Contact
Q3 2023 interim report / p 34
CVR 14 19 47 11
15 November 2023
Company announcement no.: 37/2023
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
Christina Bruun Madsen, Media +45 51 71 42 88
Disclaimer
The statements about the future in
this announcement contains risks and uncertainties
and actual developments may therefore diverge
significantly from the statements about the future.
DFDS was founded in 1866 and is headquartered and
listed in Copenhagen .