INTERIM REPORT Q1 2018 STRONG Q1

MARKET OVERVIEW A number of Europe continued to grow in Q1 2018 and the consensus view for lutions between Italy and Swedthe rest of 2018 costsre-main...

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INTERIM REPORT Q1 2018

STRONG Q1 GROWTH REVENUE UP 8% TO DKK 3.5BN EBITDA UP 10% TO DKK 453M STRONG LOGISTICS PERFORMANCE IN Q1

DFDS INTERIM REPORT Q1 2018

Both growth and earnings were ahead of expectations in Q1 and our full-year growth expectation is now raised to 4% and to 10% including U.N. Ro-Ro. European growth is robust and continues to support our ferry routes and logistics activities. Our continuous improvement projects are on track and will also contribute to earnings this year.

Q1 2018 • Revenue growth of 9%, adjusted

Niels Smedegaard, CEO

• Passenger volumes up 14% boosted by Easter

In Q1, revenue increased 9% adjusted for non-comparable items. Reported revenue was up 8% to DKK 3.5bn.

• Ferry freight volumes up 3% despite negative impact from Easter and a collision

EBITDA before special items increased 10% to DKK 453m following higher earnings from both ferry routes and logistics activities. The result includes a one-off cost of DKK 15m related to the effects of a freight ferry collision.

• Profit before special items and tax up 18%

OUTLOOK 2018 • Revenue growth increased to 4% from 2%, excl. U.N. Ro-Ro • EBITDA range of DKK 3,000-3,200m, incl. U.N. Ro-Ro • Investments of DKK 5.2bn, incl. U.N. Ro-Ro

DFDS A/S Sundkrogsgade 11 DK-2100 Copenhagen Ø CVR 14 19 47 11

Freight ferry volumes were up 3%, including a negative comparison impact from the early Easter in March this year compared to the late Easter in 2017. On the other hand, passenger volumes increased 14% as they were boosted by the Easter timing difference. There was a high level of activity for several large logistics contracts in Q1 which increased the results considerably for the Nordic and Continent business units.

Outlook 2018 The outlook includes U.N. Ro-Ro after the expected completion of the transaction in June 2018.

www.dfds.com

The Group’s revenue, excluding U.N. Ro-Ro, is now expected to increase by around 4% in 2018 up from previously 2%. The increase is due to higher actvity for both ferry routes and logistics activities. The Group’s revenue, including U.N. Ro-Ro, is expected to increase by around 10% in 2018.

CONTACT Niels Smedegaard, CEO +45 33 42 34 00

The outlook range for EBITDA before special items was DKK 2,650-2,850m before U.N. Ro-Ro. Including U.N. Ro-Ro, the outlook range for EBITDA before special items is DKK 3,000-3,200m (2017: DKK 2,702m). Investments are expected to amount to around DKK 5.2bn, inluding DKK 3.7bn related to the acquisition of U.N. Ro-Ro. See full section on Outlook on page 7-8.

9 May 2018 Company announcement no.: 38/2018

Torben Carlsen, CFO +45 33 42 32 01 Søren Brøndholt Nielsen, IR +45 33 42 33 59 Gert Jakobsen, Communications +45 33 42 32 97 CONFERENCE CALL TODAY AT 11.00 AM CET Phone numbers to the call: DK +45 70223500 US +1 646 722 4972 UK +44 20 75721187 Access code: 64448786#

KEY FIGURES DKK m Before special items Revenue

2018

2017

Q1

Q1

2017-18

2016-17

∆%

LTM

LTM

2017 ∆%

FY

3,485

3,220

8.2%

14,593

13,922

4.8%

14,328

EBITDA

453

414

9.5%

2,742

2,598

5.6%

2,702

EBIT

216

189

14.3%

1,809

1,652

9.5%

1,782

Profit before tax

204

173

18.1%

1,758

1,616

8.8%

1,727

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.

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DFDS INTERIM REPORT Q1 2018

DFDS GROUP KEY FIGURES 2018

2017

2017-18

2017

Q1

Q1

LTM

Full year

Revenue

3,485

3,220

14,593

14,328

• Shipping Division

2,301

2,154

10,039

9,892

financial items and after tax

• Logistics Division

1,385

1,235

5,310

5,160

Cash flows from investing activities

DKK m Income statement

• Non-allocated items

122

98

424

400

-267

-1,180

-1,124

(EBITDA) and special items

453

414

2,742

2,702

• Shipping Division

388

376

2,525

2,513

• Logistics Division

81

48

296

263

-15

-9

-79

-74

2

4

5

7

Profit/loss on disposal of non-current assets, net Operating profit (EBIT) before special items

216

189

1,809

1,782

Special items, net

-27

-6

-61

-41

Operating profit (EBIT)

189

183

1,747

1,741

Financial items, net

-12

-16

-50

-55

Profit before tax

177

167

1,697

1,686

Profit for the period

157

150

1,625

1,618

Profit for the period excluding non-controlling interest

• Acquisition of enterprises and activities • Other investments, net

2017-18

2017

Q1

LTM

Full year

Average number of employees

435

2,576

2,666

-218

-1,582

-1,564

-70

0

-70

0

-166

-218

-1,512

-1,564

109

217

994

1,102

7,235

7,317

7,015

7,192

Number of ships

64

55

-

64

Revenue growth (reported), %

8.2

4.3

1.8

3.9

13.0

12.9

18.8

18.9

6.2

5.9

12.4

12.4

Revenue, invested capital average, (times)

-

-

1.6

1.6

Return on invested capital (ROIC), %

-

-

18.6

18.6

ROIC before special items, %

-

-

19.3

19.0

Return on equity, %

-

-

26.2

24.5

48.6

47.3

-

49.7

-

-

1.0

0.9

2.86

2.65

29.45

29.08

EBITDA-margin, % Operating margin, %

Key capital and per share ratios Equity ratio, % Net interest bearing debt/EBITDA, (times)

150

1,623

1,617

13,164

12,829

-

13,308

DFDS A/S' share of equity

6,351

6,017

-

6,565

Weighted average number of circulating

Equity

6,399

6,065

-

6,614

shares, '000

Net interest-bearing debt

2,630

3,007

-

2,352

Share price, DKK

Invested capital, end of period

9,165

9,180

-

9,099

Market value

Invested capital, average

9,132

9,193

9,170

9,178

Earnings per share (EPS), DKK Dividend paid per share, DKK

Capital

344 -235

Key operating and return ratios

156

Total assets

2017

Q1

Cash flows from operating activities, before

Free cash flow

Operating profit before depreciation

• Non-allocated items

2018

Cash flows

-323

• Eliminations

DKK m

Number of shares, end of period, '000

4.00

3.00

11.00

10.00

57,000

60,000

-

57,000

54,628

56,576

-

55,594

338.2

383.5

-

331.3

18,474

21,436

-

18,106

Definitions on page 29.

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DFDS INTERIM REPORT Q1 2018

MARKET OVERVIEW

MAJOR EVENTS IN Q1

Europe continued to grow in Q1 2018 and the consensus view for the rest of 2018 remains positive.

Completion of acquisition of logistics company Alphatrans To further expand and develop DFDS' European logistics services, the acquisition of 100% of the share capital of the Dutch company Alphatrans Group BV was completed on 3 January 2018 and consolidated in the DFDS Group per the same date.

The Easter holiday in March was included in Q1 in 2018 while it was part of Q2 in 2017. When comparing Q1 2018 to the same period last year, it should be noted that freight activity is reduced by the Easter holiday while passenger activities are increased. The real GDP of UK, DFDS’ largest market, continued to grow but at a lower level than the rest of Europe. Despite some weakness in domestic demand, the global and European growth is expected to support the UK economy in 2018. After a slowdown in trading growth between UK and EU in Q4 2017, trading volume growth picked up again in the first two months of 2018. The average rate of GBP/DKK was 2.5% lower in the quarter compared to Q1 2017 while NOK/DKK was 6.6% lower and SEK/NOK was 4.5% lower. The demand for passenger ferry services was boosted by the Easter timing difference. The Norwegian market continued to be subdued by the weaker NOK.

Baltic routes to be strengthened To improve the ability to support the growth in the Baltic region of our freight customers and offer the best possible travel experience for passengers, two combined freight and passenger new buildings (ropax) were ordered on 12 February 2018 for delivery in Q1 and Q3 2021, respectively. The ferries are designed to each carry 4,500 lane metres of freight and passenger vehicles as well as 600 passengers. The two ferries will be built by Guangzhou Shipyard International Co, Ltd. at their Nansha Yard in China. Both ferries are planned to be deployed on the routes connecting Lithuania with either Sweden or Germany.

Italian logistics activities restructured following unsatisfactory results The primary activity was door-door rail solutions between Italy and Sweden/Denmark/UK. These activities were terminated during April 2018. The warehousing and distribution activities based in Fagnano, north of Milan, will cease as per the end of Q3 2018. The door-door rail solutions provided between Italy and Benelux/Ireland/Norway will continue and be managed from offices in Oslo and Rotterdam. Likewise, DFDS will continue to provide road services between Sweden and Italy. The restructuring is expected to reduce the revenue of the Italian logistics activities in 2018 by around DKK 225m compared to 2017. 34 employees in Italy, Sweden, UK and Denmark were made redundant.

Corporate functions restructured A number of corporate functions were restructured in March 2018. Redundancy costs of DKK 7m are recognised under Special Items in the income statement. One-off cost from collision On 2 March 2018, DFDS’ ro-ro freight ferry Primula Seaways was hit by a container ship during a sailing from Ghent to Brevik. Primula Seaways was subsequently out of service for five weeks. Route operations as well as the port terminal operation in Gothenburg were disrupted by the incident. To mitigate the effect on our customers, a ship was swapped from another route and capacity was chartered in short-term. The incident negatively impacted EBITDA in Q1 with a one-off cost of DKK 15m.

The restructuring entailed one-off costs of DKK 15m which are recognised under Special items in the income statement.

4

DFDS INTERIM REPORT Q1 2018

MAJOR EVENTS AFTER Q1 Acquisition of U.N. Ro-Ro On 12 April 2018, DFDS entered into an agreement to acquire 98.8% of U.N. Ro-Ro, Turkey’s largest operator of freight ferry routes connecting Europe and Turkey. In 2018, U.N. Ro-Ro’s revenue is expected to be EUR 240m (DKK 1.8bn) and EBITDA is expected to be EUR 97m (DKK 725m). DFDS will pay EUR 0.5bn (DKK 3.7bn) for 98.8% of the shares in U.N. Ro-Ro corresponding to an enterprise value of EUR 0.95bn (DKK 7.1bn). The transaction is subject to approval by the Turkish, Austrian and German competition authorities as well as approval by Italian authorities in relation to the transfer of the Trieste port terminal concession. Closing of the transaction is expected to take place in June 2018 and U.N. Ro-Ro will subsequently be consolidated into the DFDS Group. Change in capital structure and distribution As a consequence of the acquisition of U.N. Ro-Ro, DFDS’ financial leverage, NIBD/ EBITDA, is expected to increase to 2.5 on a pro forma basis upon completion of the transaction. The Board of Directors therefore cancelled the share buyback launched on 8 February 2018 and suspended the planned dividend of DKK 7.00 in August 2018 in connection

with the announcement of the U.N Ro-Ro acquisition on 12 April 2018. The Board of Directors will in February 2019, in connection with the release of the Q4 and year-end report, review the capital structure and hence the capital distribution for 2019. Share capital issue and EGM In view of planned fleet renewals in both DFDS and U.N. Ro-Ro and potential investment opportunities during the next 12-18 months, the Board of Directors recommended to raise capital of DKK 1.0bn through a 5% share issue as part of the acquisition financing structure that otherwise consists of committed term loan financing. The share capital issue will be proposed to an extraordinary general meeting that will be held on 14 May 2018. Lauritzen Foundation, that owns 42% of DFDS' share capital, has confirmed their intention to participate with DKK 400m in the share issue. Performance issues closes Rosyth-Zeebrugge The route between Rosyth in Scotland and Zeebrugge in Belgium carrying only freight was closed in April 2018. The financial performance of the route, that deployed one ro-ro freight ferry for three weekly round trips, has struggled to meet expectations. Freight volumes are, in general, increasingly being focused on large hubs offering a high frequency of departures deploying larger ferries. The annual revenue of the route was around DKK 100m in 2017.

REVENUE DKK m

Q1 2018

Q1 2017

Change, %

Change

Shipping Division

2,301

2,154

6.8

147

Logistics Division

1,385

1,235

12.2

151

122

98

24.1

24

Eliminations

-323

-267

-21.0

-56

DFDS Group

3,485

3,220

8.2

265

Non-allocated items

Channel route to be strenghened To ensure capacity for reliably moving freight and passengers on the Channel, DFDS entered into a 10-year bareboat charter agreement with Stena RoRo for a new building ro-pax ferry for delivery in early 2021. The agreement includes a purchase option. The ferry will be tailored to DFDS' requirements for deployment on the Channel. DFDS' two Channel-routes currently deploy six ferries and the charter is part of the ongoing renewal of the fleet. The initial plan is for replacement of the oldest of the ferries, Calais Seaways, that was built in 1991 with a capacity of 1,600 lane meters for freight and around 1,000 passengers. The final deployment plan will be announced in 2020. The new ferry will have a considerably higher freight capacity of 3,100 lane meters and will accommodate around 1,000 passengers with room on board to offer a wide range of passenger services. The ferry is highly efficient and environmentally friendly with an expected reduction in oil consumption of around 25% per transported unit.

FINANCIAL PERFORMANCE Revenue The Group’s revenue in Q1 was DKK 3,485m, an increase of 8.2% compared to 2017. Revenue increased by 8.8% adjusted for currency changes, an acquisition, the divested Belfast activity and excluding revenue from bunker surcharges. The Shipping Division’s Q1 revenue of DKK 2,301m increased 6.8% and by 6.9% adjusted for currency changes and excluding revenue from bunker surcharges. Freight revenue increased in primarily North Sea and Channel mainly driven by higher volumes. The increase included a negative impact from the early Easter in March this year compared to 2017 where the Easter was in April. Passenger revenue in Q1 was, on the other hand, boosted by the Easter timing difference. The Logistics Division’s Q1 revenue of DKK 1,385m increased 12.2% and by 13.0% adjusted for currency changes, an acquisition and the divested Belfast activity.

5

DFDS INTERIM REPORT Q1 2018

The revenue growth was driven by high volumes and additional activities in the Nordic and Continental business units. Operating profit before depreciation(EBITDA) and special items The Group’s EBITDA increased 10% to DKK 453m in Q1. The Shipping Division’s Q1 EBITDA increased 3% to DKK 388m. The result inludes a oneoff cost of DKK 15m related to a collision that disrupted the Gothenburg-Ghent route and the port terminal in Gothenburg in March. A large part of the one-off cost was related to the short-term charter of replacement freight ferries. The early Easter had a positive impact on Channel and Passenger, although in Passenger higher costs, including efficiency project costs, during Q1 offset the positive Easter impact. The Logistics Division’s Q1 EBITDA increased 69% to DKK 81m and by 41% excluding an acquisition. The improved result was driven by the Nordic and Continent business units following higher activity for a number of logistics contracts. Depreciation and operating profit (EBIT) before special items Depreciation in Q1 of DKK 243m increased DKK 7m compared to 2017. The increase was to a large extent related to the acquisition of a logistics company. Depreciations were also higher on software and IT-systems.

The Group’s EBIT before special items for Q1 increased 14% to DKK 216m. Special items In Q1 2018, special items was a net cost of DKK 27m primarily due to a restructuring of the Italian logistics activities and a restructuring of corporate functions. Also included are costs for the award of anniversary shares to all employees.

DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS

DKK m 1,100 1,000 900 800 700 600 500 400 300 200 100 0

2016

The Group’s Q1 EBIT after special items increased 3% to DKK 189m.

Q1 2017

Q2

Q3

Q4

2018

OPERATING PROFIT BEFORE DEPRECIATION (EBITDA) & SPECIAL ITEMS

Financial items The total net cost of financing in Q1 was DKK 4m lower than in Q1 2017. The positive variance was mainly due to net currency changes.

Q1 2018

Q1 2017

Change, %

Change

Shipping Division

388

376

3.2

12

Logistics Division

81

48

68.9

33

Non-allocated items

-15

-9

-61.0

-6

DFDS Group

453

414

9.5

39

Profit before and after tax The profit before tax for Q1 increased 6% to DKK 177m. The increase was 18% excluding special items. The profit after tax was DKK 157m following taxes of DKK 21m.

EBITDA-margin, %

13.0

12.9

1.2

0.2

Change, %

Change

Earnings per share Earnings per share (EPS) for the quarter increased to DKK 2.86 from DKK 2.65 in Q1 2017, an increase of 8%.

EBITDA before special items

Cash flow and investments The free cash flow (FCFF) of Q1 was DKK 109m, including investments of DKK 235m mainly related to ships and the acquisition of a logistics company. In Q1, the cash flow from financing activities was negative by DKK 542m mainly due to distribution to shareholders of

DKK m

ASSOCIATES AND JOINT VENTURES, PROFITS ON DISPOSALS AND DEPRECIATION DKK m

Q1 2018

Q1 2017

453

414

9.5

39

Associates and joint ventures

3

6

-48.1

-3

Profit on disposals

2

4

-44.9

-2

-243

-236

-3.1

-7

216

189

14.3

27

Q1 2018

Q1 2017

Change, %

Change

-14

-12

-9.9

-1

7

3

116.1

4

-5

-7

25.7

2

-12

-16

-26.6

4

Depreciation and impairment EBIT before special items

FINANCIAL ITEMS DKK m Interest, net Foreign exchange gains/losses, net Other items Total finance, net

6

DFDS INTERIM REPORT Q1 2018

DKK 380m and repayment of corporate bonds. The net cash flow for Q1 2018 was negative by DKK 443m and at the end of Q1 cash amounted to DKK 591m. Capital structure At the end of Q1 net-interest-bearing debt (NIBD) was DKK 2,630m, an increase of 12% compared to year-end 2017. Financial leverage, as measured by the ratio of NIBD to EBITDA before special items, was a multiple of 1.0 compared to 0.9 at yearend 2017. The equity ratio was 49% at the end of Q1. Equity Equity amounted to DKK 6,399m at the end of Q1, including minority interests of DKK 49m. This was 3% below equity at yearend 2017 as total comprehensive income for Q1 2018 was DKK 100m while transactions with owners reduced equity by DKK 315m, including dividend and share buyback. Invested capital and ROIC Invested capital was DKK 9,165m at the end of Q1 which was on level with year-end 2017. For the last twelve months (LTM), the return on invested capital, ROIC, was 19.3% before special items compared to 19.0% for 2017.

MANAGEMENT SHAREHOLDINGS Current shareholdings for Niels Smedegaard, CEO, and Torben Carlsen, CFO, are available at https://www.dfds.com/group/about/management.

OUTLOOK 2018 OUTLOOK

OUTLOOK

2018 INCL.

2018 EXCL.

U.N. RO-RO1

U.N. RO-RO

2017

10%

4%

14,328

3,000-3,200

2,650-2,850

2,702

Shipping Division

2,825-2,975

2,475-2,625

2,513

Logistics Division

275-325

275-325

263

Non-allocated items

-100

-100

-74

Depreciation

18%

4%

-933

DKK m Revenue growth EBITDA before special items Per division:

OUTLOOK 2018 New customer agreements, continuous improvement projects and tailwind from European growth is expected to underpin and drive earnings improvement. In 2018, DFDS is investing in further development of digital capabilities to enchance the customer experience and gain operational efficiencies.

Special items Investments

-45

-45

-41

-5,200

-1,300

-1,564

1 As per expected closing in June 2018

The Group’s revenue, including U.N. Ro-Ro, is now expected to increase by around 10% in 2018.

related to the award of shares to employees in connection with DFDS’ 150th anniversary.

Pricing continues, as expected, to be competitive in both freight and passenger markets.

The above does not include transaction costs related to U.N. Ro-Ro. These costs will be included in the Q2 2018 report.

On 12 April, the acquisition of U.N. Ro-Ro was announcend. The acquisition is expected to be completed in June 2018 and in the following, U.N. Ro-Ro is assumed consolidated into the DFDS Group subsequent to the closing.

EBITDA outlook The outlook range, including U.N. Ro-Ro, for EBITDA before special items is DKK 3,0003,200m (2017: DKK 2,702m) up from DKK 2,650-2,850m which was the outlook range prior to the acquisition of U.N. Ro-Ro.

Investments Investments of around DKK 5.2bn are now expected in 2018:

Revenue outlook The Group’s revenue, excluding U.N. Ro-Ro, is now expected to increase by around 4% up from the previous expectation of around 2%. The increase is due to higher actvity for both ferry routes and logistics activities.

Special items The cost of Special items has been increased to DKK -45m due to restructuring of the Italian logistics activities and corporate functions. Special items also include costs

European real GDP growth looks set to continue at a level of around 2% in 2018. This includes growth projections for the UK economy that are somewhat above 1%.

• Dockings and ship upgrades: DKK 350m • Freight ferry (ro-ro) new buildings: DKK 300m • Passenger and freight ferry (ro-pax) new buildings: DKK 200m • Port terminals: DKK 200m • Cargo carrying equipment and warehouses, mainly related to the Logistics Division: DKK 150m

7

DFDS INTERIM REPORT Q1 2018

• Other investments, including IT and digital: DKK 100m • Acquisition of U.N. Ro-Ro, equity value: DKK 3.7bn • U.N. Ro-Ro investments, including lengthening of two freight ferries: DKK 200m. A total of four freight new buildings are on order; two for delivery in beginning of 2019 and two for delivery in beginning of 2020. In addition, two combined passenger and freight new buildings are on order for delivery in 2021.

A number of risks and uncertainties pertain to the outlook. The most important among these are possible major changes in the demand for ferry shipping and transport and logistics services. For DFDS, such demand is to a large extent linked to the level of economic activity in primarily Europe, especially northern Europe and in particular the UK following its decision to leave the EU, but also adjacent regions, including Turkey. Demand can also be impcated by competitor actions. The outlook can also be impacted by political changes, first and foremost within the EU and Turkey, as well as changes in economic variables, especially the oil price and exchange rates. Consequently, the future financial results may differ significantly from expectations.

8

DFDS INTERIM REPORT Q1 2018

The Easter holiday was this year part of Q1 as it fell in the last week of March. Passenger travel increases during Easter on DFDS’ routes across The Channel, on the two cruise ferry routes – Copenhagen-Oslo and Amsterdam-Newcastle – and on the Baltic Sea routes. In March alone, the number of passengers increased 30% compared to last year where the Easter fell in April. Freight volumes, on the other hand, slow down through Easter as industry reduces or stops production during the holiday break.

9

DFDS INTERIM REPORT Q1 2018

SHIPPING DIVISION

SHIPPING 2018 DKK m

North Sea Baltic Sea Channel France & Mediterranean Passenger

2017

Q1

Q1

Q2

Q3

Q4

LTM

Full year

2,154

2,523

2,835

2,381

10,039

9,892

388

376

680

926

531

2,525

2,513

joint ventures

3

6

0

-1

1

3

6

Profit/loss on disposal of non-current assets, net

1

0

0

0

0

2

1

-198

-202

-203

-198

-189

-788

-792

194

180

478

726

343

1,741

1,727

8.4

8.4

18.9

25.6

14.4

17.3

17.5

-1

0

9

0

-16

-8

-7

193

180

486

726

327

1,733

1,720

8,177

8,264

8,287

8,347

8,271

8,262

8,264

-

-

-

-

-

20.8

20.7

9,536

9,223

9,433

9,513

9,613

38,095

37,782

862

756

1,428

2,144

1,020

5,455

5,349

Share of profit/loss of associates and

Depreciation and impairment EBIT before special items EBIT margin before special items, %

    

2017-18

2,301

Revenue EBITDA before special items

The Shipping Division operates DFDS’ route network organised in five business units:

2017

Special items, net EBIT Invested capital, average ROIC before special items, % Lane metres, '000 Passengers, '000

Q1 MARKET, ACTIVITY AND RESULT TRENDS

timing difference and cold weather in March reduced volumes compared to 2017.

EBIT decreased 4% to DKK 71m primarily due to the lower freight volumes.

North Sea Freight volumes in Q1 were 8.7% above 2017. The two key growth drivers were capacity increases between Sweden and the Continent and between Germany and UK. Replacement freight ferries were chartered in following a collision in March 2018 involving one of the freight ferries deployed between Sweden and the Continent. Both route and port terminal operations were impacted by the incident that resulted in a one-off cost of DKK 15m in Q1. The Easter

EBIT increased 3% to DKK 155m and by 13% adjusted for the one-off collision cost.

Channel Freight volumes increased 1.9% compared to 2017 in a market that overall was 2.0% lower as the Easter timing difference reduced volumes. The volume growth was positively impacted by a reduction of a competitor’s capacity during Q1.

Baltic Sea Freight volumes in Q1 were 1.4% below 2017 reflecting somewhat lower market shares in regions where capacity has been increased on competing routes. The Easter timing difference reduced freight volumes compared to 2017. Passenger volumes were up 6.5% due to a positive impact from the Easter timing difference.

Passenger volumes were up 15.0% in Q1 mainly driven by the Easter timing difference.

10

DFDS INTERIM REPORT Q1 2018

EBIT increased DKK 19m to DKK 18m in Q1 due to the higher volumes. France & Mediterranean Freight volumes in Q1 were 6.5% below 2017 while passenger volumes were up 8.6%. The decrease in freight volumes was entirely due to the Western Channel market. EBIT increased to DKK 3m from a loss of DKK 8m in 2017 mainly due to a positive Easter impact and timing differences of costs related to a new five-year concession agreement. Passenger The number of passengers in Q1 increased 12.6% compared to 2017 as volumes increased on both routes, particularly on Amsterdam-Newcastle where the number of departures was increased due to fewer docking days compared to 2017. EBIT decreased in Q1 by DKK 21m to DKK -80m. Although the higher number of passengers increased earnings, this was offset by cost increases related to additional departures, on board maintenance projects and bunker. In addition, the result includes costs related to an efficiency project, including consultancy costs, as well as a negative impact from the depreciation of NOK. Non-allocated items These items comprise primarily external charter activities. EBIT increased 13% to DKK 26m mainly due to additional charter activity.

11

DFDS INTERIM REPORT Q1 2018

SHIPPING DIVISION 2018

2017-18

2017

Q1

Q1

Q2

Q3

Q4

LTM

Full year

Revenue

967

926

928

897

949

3,740

3,699

EBIT before special items

155

151

179

174

166

675

670

3,967

4,263

4,136

4,115

4,064

4,109

4,164

DKK m

2017

NORTH SEA

Invested capital ROIC before special items, % Lane metres freight, '000

-

-

-

-

-

16.0

15.8

3,347

3,077

3,185

3,145

3,204

12,880

12,611

343

341

382

388

355

1,467

1,465

71

74

105

116

84

376

379

1,218

1,218

1,181

1,182

1,159

1,191

1,201

BALTIC SEA Revenue EBIT before special items Invested capital ROIC before special items, % Lane metres freight, '000 Passengers, '000

-

-

-

-

-

31.5

31.5

1,102

1,118

1,169

1,146

1,126

4,543

4,559

36

34

55

76

41

207

205

502

457

563

746

540

2,351

2,306

18

-1

75

202

75

369

350

2,131

2,057

2,055

2,022

1,933

2,040

2,019

CHANNEL Revenue EBIT before special items Invested capital ROIC before special items, %

-

-

-

-

-

18.0

17.2

4,730

4,643

4,684

4,848

4,898

19,160

19,073

523

455

908

1,482

620

3,533

3,465

101

98

123

150

110

483

480

3

-8

2

18

1

24

13

16

76

40

33

43

42

35

-

-

-

-

-

57.5

35.8

228

243

248

234

225

934

950

33

31

92

166

51

341

339

Revenue

298

272

460

586

356

1,700

1,674

EBIT before special items

-80

-59

88

184

-29

162

183

Invested capital

562

620

711

725

712

666

678

-

-

-

-

-

23.8

26.6

Lane metres freight, '000

130

141

147

140

160

578

589

Passengers, '000

270

237

374

421

309

1,373

1,341

119

101

121

123

132

496

478

26

23

30

33

47

136

133

Lane metres freight, '000 Passengers, '000 FRANCE & MEDITERRANEAN Revenue EBIT before special items Invested capital ROIC before special items, % Lane metres freight, '000 Passengers, '000 PASSENGER

ROIC before special items, %

NON-ALLOCATED ITEMS Revenue EBIT before special items The invested capital in the quarter is shown as per the end of the period. For the full year, the invested capital is shown as an average.

12

DFDS INTERIM REPORT Q1 2018

LOGISTICS DIVISION

LOGISTICS 2018 DKK m Revenue EBITDA before special items

The Logistics Division operates DFDS’ logistics activities organised in three business units:

Profit/loss on disposal of non-current assets, net Depreciation and impairment

2017

Q1

Q2

Q3

Q4

LTM

Full year

1,385

1,235

1,346

1,261

1,318

5,310

5,160

81

48

73

66

77

296

263

1

3

1

0

1

3

5

-34

-25

-24

-25

-28

-111

-102 166

2017

EBIT before special items

48

26

49

42

50

188

EBIT margin before special items, %

3.5

2.1

3.6

3.4

3.8

3.5

3.2

Special items, net

-17

0

0

0

-13

-30

-13

EBIT

 Nordic  Continent  UK & Ireland

2017-18

Q1

Invested capital, average ROIC before special items, %

31

26

49

42

37

159

153

1,147

1,123

1,127

1,139

1,129

1,136

1,128

-

-

-

-

-

14.5

13.1

Tons, '000

97.7

99.0

100.0

94.1

107.3

399.1

400.4

Units, '000

145.5

131.9

140.9

136.1

139.6

562.2

548.5

Q1 MARKET, ACTIVITY AND RESULT TRENDS Nordic The number of transported units in Q1 increased 21.1% as almost all areas increased volumes. Key growth drivers were new and existing contract logistics activities in Sweden and the Baltic region. Volumes for the door-door trailer solutions continued to grow in the Scandinavia corridors. Norwegian sideport volumes also increased. EBIT increased 195% to DKK 26m as most activities contributed with the largest improvement achieved by the Swedish activities. Continent The number of transported units in Q1 increased 23.3% and by 7.8% adjusted for the acquisition of Special Cargo on 3 January

2018 (formerly Alphatrans Group). The volume growth was mainly driven by the Netherlands-UK and the Belgium-Sweden traffics. EBIT increased 110% to DKK 18m driven by the Benelux activities, including a growing share of high-margin solutions and additional contract logistics activities, and the addition of Special Cargo.

EBIT decreased 54% to DKK 4m. The divestment of the Belfast activity had a positive impact but this was offset by extra costs for transport activities and a cold store contract as well as a lower result for the acquaculture distribution activity in England. Targeted projects to turnaround the cold store contract and the acquaculture distribution have been initiated with a view to improving results in the second half of the year.

UK & Ireland The number of transported units in Q1 decreased 11.8% and decreased 2.2% adjusted for the divested Belfast activity. The lower volumes were due to the ongoing closure of the UK-Italy rail activities and somewhat lower acquaculture volumes. Higher activity in cold stores in England was due to a new contract.

13

DFDS INTERIM REPORT Q1 2018

LOGISTICS DIVISION 2018 DKK m

2017-18

2017

Q1

Q1

Q2

Q3

Q4

LTM

Full year

517

429

486

461

522

1,986

1,898

26

9

17

13

22

79

62

362

332

360

411

371

367

359

2017

Nordic Revenue EBIT before special items Invested capital ROIC before special items, %

-

-

-

-

-

21.3

16.8

Units, '000 *

37.6

31.0

35.8

32.9

35.4

141.7

135.2

Tons, '000

97.7

99.0

100.0

94.1

107.3

399.1

400.4

626

479

518

500

538

2,182

2,035

18

9

17

18

21

74

65

513

346

340

344

368

382

351

Continent Revenue EBIT before special items Invested capital ROIC before special items, % Units, '000

-

-

-

-

-

15.5

15.3

66.8

54.2

57.1

56.1

61.3

241.3

228.7

274

359

378

339

312

1,303

1,388

4

9

14

10

7

35

40

387

445

429

394

370

405

418

UK & Ireland Revenue EBIT before special items Invested capital ROIC before special items, % Units, '000

-

-

-

-

-

7.5

8.2

41.2

46.7

48.0

47.1

42.9

179.1

184.6

74

53

54

55

53

237

216

0

0

0

0

0

0

0

Non-allocated items Revenue EBIT before special items * Excluding volumes related to automotive Logistics contract. The invested capital in the quarter is shown as per the end of the period. For the full year, the invested capital is shown as an average.

14

DFDS INTERIM REPORT Q1 2018

MANAGEMENT STATEMENT The Board of Directors and the Executive Board have reviewed and approved the interim report of DFDS A/S for the period 1 January – 31 March 2018. The interim report, which has not been audited or reviewed by the Company’s auditor, has been prepared in accordance with IAS 34, “Interim Financial Reporting”, as adopted by the EU, and additional Danish interim reporting requirements for listed companies. In our opinion, the interim report gives a true and fair view of the DFDS Group’s assets, liabilities and financial position at 31 March 2018 and of the results of the DFDS Group’s operations and cash flow for the period 1 January – 31 March 2018. Further, in our opinion, the Management review p. 1-14 gives a true and fair review of the development in the Group’s operations and financial matters, the result of the DFDS Group’s operations for the period and the financial position as a whole. Copenhagen, 9 May 2018

EXECUTIVE BOARD NIELS SMEDEGAARD President & CEO, TORBEN CARLSEN CFO BOARD OF DIRECTORS

CLAUS HEMMINGSEN Chair, KLAUS NYBORG Deputy Chair, ANDERS GÖTZSCHE, JØRGEN JENSEN, JENS OTTO KNUDSEN, JILL LAURITZEN MELBY, JESPER HARTVIG NIELSEN, LARS SKJOLD-HANSEN, MARIANNE DAHL STEENSEN

15

DFDS INTERIM REPORT Q1 2018

DFDS GROUP - INCOME STATEMENT 2018

2017

2017-18

2017

Note

Q1

Q1

LTM

Full year

3

3,485.0

3,220.1

14,592.7

14,327.8

Ship operation and maintenance

-760.3

-692.4

-2,956.9

-2,888.9

Freight handling

-590.9

-561.3

-2,291.6

-2,262.0

Transport solutions

-819.3

-762.0

-3,185.8

-3,128.4

Employee costs

-674.5

-638.7

-2,696.6

-2,660.7

Costs of sales and administration

-186.6

-151.8

-720.2

-685.4

Operating profit before depreciation (EBITDA) and special items

453.3

413.9

2,741.7

2,702.3

Share of profit/loss of associates and joint ventures

3.3

6.4

2.5

5.6

Profit/loss on disposal of non-current assets, net

2.4

4.3

5.0

7.0

-184.3

-187.1

-742.5

-745.3

-58.7

-48.6

-207.3

-197.3

0.0

0.0

9.3

9.3

216.0

188.9

1,808.7

1,781.7

-26.7

-5.9

-61.5

-40.7

189.3

183.0

1,747.2

1,741.0

DKK m Revenue Costs

Depreciation, ships Depreciation, other non-current assets Impairment losses, ships and other non-current assets Operating profit (EBIT) before special items Special items, net Operating profit (EBIT) Financial income

4

7.9

4.6

30.3

27.0

-19.7

-20.7

-80.7

-81.7

177.5

166.9

1,696.8

1,686.3

-20.7

-16.8

-72.1

-68.3

156.8

150.1

1,624.7

1,618.0

156.2

150.3

1,622.8

1,616.8

0.6

-0.1

1.9

1.3

156.8

150.1

1,624.7

1,618.0

Basic earnings per share (EPS) of DKK 20, DKK

2.86

2.65

29.45

29.08

Diluted earnings per share (EPS-D) of DKK 20, DKK

2.84

2.63

29.23

28.83

Financial costs Profit before tax Tax on profit Profit for the period Attributable to: Equity holders of DFDS A/S Non-controlling interests Profit for the period Earnings per share

16

DFDS INTERIM REPORT Q1 2018

DFDS GROUP – STATEMENT OF COMPREHENSIVE INCOME 2018 DKK m

2017

2017-18

2017

Q1

Q1

LTM

Full year

156.8

150.1

1,624.7

1,618.0

Remeasurement of defined benefit pension obligations

0.0

0.0

57.9

57.9

Tax on items that will not be reclassified to the Income statement

0.0

0.8

-0.8

0.0

Items that will not be reclassified subsequently to the Income statement

0.0

0.8

57.2

57.9

Value adjustment for the period

75.9

-17.9

-38.9

-132.7

Value adjustment transferred to operating costs

-0.6

-3.7

-6.5

-9.6

Value adjustment transferred to financial costs

-93.0

11.9

-75.8

29.1

Value adjustment transferred to non-current tangible assets

4.7

0.0

10.9

6.2

Tax on items that will be reclassified to the Income statement

0.2

0.0

1.4

1.1

Foreign exchange adjustments, subsidiaries

-43.6

3.8

-107.5

-60.1

Items that are or may be reclassified subsequently to the Income statement

-56.3

-5.9

-216.5

-166.1

Profit for the period Other comprehensive income Items that will not be reclassified subsequently to the Income statement:

Items that are or may be reclassified subsequently to the Income statement: Value adjustment of hedging instruments:

Total other comprehensive income after tax

-56.3

-5.2

-159.3

-108.2

Total comprehensive income

100.5

145.0

1,465.4

1,509.8

100.0

145.1

1,463.4

1,508.5

0.4

-0.1

1.9

1.3

100.5

145.0

1,465.3

1,509.8

Attributable to: Equity holders of DFDS A/S Non-controlling interests Total comprehensive income

17

DFDS INTERIM REPORT Q1 2018

BALANCE SHEET ASSETS DKK m Goodwill Other non-current intangible assets Software Development projects in progress

EQUITY AND LIABILITIES 2018

2017

2017

Q1

Q1

Full year

572.8

557.4

554.5

39.1

36.6

29.4

237.3

227.8

235.3

10.2

8.6

14.8

Non-current intangible assets

859.4

830.3

834.0

Land and buildings

163.6

153.3

148.8

Terminals

475.1

504.8

480.4

Ships

7,425.1

7,911.2

7,505.4

Equipment, etc.

694.6

547.0

615.7

Assets under construction and prepayments

303.6

137.9

307.8

9,061.9

9,254.2

9,058.0

44.9

44.6

42.8

Receivables

135.7

24.8

135.7

Deferred tax

65.0

85.2

63.6

Derivative financial instruments

21.3

26.9

0.0

266.9

181.5

242.1

10,188.3

10,266.0

10,134.1

148.9

128.3

1,896.2

1,804.5

Non-current tangible assets Investments in associates and joint ventures and securities

Other non-current assets Non-current assets Inventories Trade receivables including work in progress services Receivables from associates and joint ventures

Proposed dividends Equity attributable to equity holders of DFDS A/S Non-controlling interests

Full year

1,140.0

1,200.0

1,140.0

-512.1

-328.8

-455.0

5,722.7

5,146.1

5,651.6

0.0

0.0

228.0

6,350.7

6,017.3

6,564.6

48.6

48.1

49.0

Equity

6,399.3

6,065.4

6,613.7

Interest-bearing liabilities

2,974.4

1,516.2

2,931.6

Deferred tax

200.4

193.3

197.1

Pension and jubilee liabilities

379.7

458.3

378.6

Other provisions

42.3

54.0

42.4

Derivative financial instruments

93.7

9.6

94.8

3,690.5

2,231.3

3,644.5

Non-current liabilities

343.9

1,822.9

1,847.0

Payables to associates and joint ventures

37.4

32.3

40.1

Other provisions

64.2

67.8

35.1

155.8

Corporation tax

22.4

34.1

23.8

1,687.5

Other payables

536.9

507.0

489.6 111.3

53.8

74.1

147.2

129.2

Prepaid costs

134.1

132.4

90.7

Assets

Retained earnings

2017

Q1

1,655.3

71.8

Current assets

Reserves

2017

Q1

235.4

129.5

Cash

Share capital

2018

1,866.5

Other receivables Derivative financial instruments

DKK m

4.5

17.9

3.8

591.1

279.0

1,033.2

2,976.1

2,563.2

3,174.3

13,164.4

12,829.2

13,308.4

Interest-bearing liabilities Trade payables

Derivative financial instruments

49.3

141.2

262.5

271.8

159.3

Current liabilities

3,074.6

4,532.5

3,050.2

Liabilities

6,765.1

6,763.8

6,694.7

13,164.4

12,829.2

13,308.4

Prepayments from customers

Equity and liabilities

18

DFDS INTERIM REPORT Q1 2018

DFDS GROUP - STATEMENT OF CHANGES IN EQUITY (1 JANUARY – 31 MARCH 2018) RESERVES Equity attributable to equity Revaluation

holders

Non-

of DFDS

controlling

dividends

A/S

interests

Total

228.0

6,564.6

49.0

6,613.7

228.0

6,564.6

49.0

6,613.7

156.2

0.6

156.8

Share

Translation

Hedging

of

Treasury

Retained

Proposed

DKK m

capital

reserve

Reserve

securities

shares

earnings

Equity at 1 January 2018

1,140.0

-339.7

-68.4

0.1

-47.0

5,651.6

1,140.0

-339.7

-68.4

-47.0

5,651.7

Change in accounting policies* Restated equity at 1 January 2018

-0.1 0.0

0.1

0.0

0.0

Comprehensive income for the period Profit for the period

156.2

Other comprehensive income Items that are or may be reclassified subsequently to the Income statement: Value adjustment of hedging instruments for the period

75.9

75.9

Value adjustment transferred to operating costs

-0.6

-0.6

-0.6

Value adjustment transferred to financial costs

-93.0

-93.0

-93.0

4.7

4.7

Value adjustment transferred to non-current tangible assets

4.7

Tax on items that will be reclassified to the Income statement

0.2

Foreign exchange adjustments, subsidiaries

75.9

0.2

-43.4

0.2

-43.4

-0.1

-43.6 -56.3

Items that are or may be reclassified subsequently to the Income statement

0.0

-43.4

-13.0

0.0

0.0

0.2

0.0

-56.2

-0.1

Total other comprehensive income after tax

0.0

-43.4

-13.0

0.0

0.0

0.2

0.0

-56.2

-0.1

-56.3

Total comprehensive income

0.0

-43.4

-13.0

0.0

0.0

156.5

0.0

100.0

0.4

100.5

0.6

-0.9

-218.9

-218.9

-218.9

-9.1

0.0

0.0

Transactions with owners Acquisition, non-controlling interests

0.6

Dividend paid

-0.2

Dividend on treasury shares

9.1

Vested share-based payments

6.0

6.0

6.0

8.8

50.2

59.0

59.0

Cash from sale of treasury shares related to exercise of share options Purchase of treasury shares Transactions with owners Q1 2018 Equity at 31 March 2018

-9.3

-151.4

0.0

0.0

0.0

0.0

-0.6

-85.5

-228.0

-160.7 -314.0

-0.9

-160.7 -314.9

1,140.0

-383.2

-81.4

0.0

-47.5

5,722.7

0.0

6,350.7

48.6

6,399.3

* According to the new IFRS 9 changes in Fair value of securities are recognised via the Income Statement. Due to immaterial effects from implementing IFRS 9 and IFRS 15, the 1 January 2018 Equity has not been restated.

19

DFDS INTERIM REPORT Q1 2018

DFDS GROUP - STATEMENT OF CHANGES IN EQUITY (1 JANUARY – 31 MARCH 2017) RESERVES Equity attributable to equity Revaluation

holders

Non-

of DFDS

controlling

dividends

A/S

interests

Total

180.0

6,636.4

48.2

6,684.6

150.3

-0.1

150.1

Share

Translation

Hedging

of

Treasury

Retained

Proposed

DKK m

capital

reserve

Reserve

securities

shares

earnings

Equity at 1 January 2017

1,200.0

-279.6

38.8

0.1

-58.9

5,556.1

Comprehensive income for the period Profit for the period

150.3

Other comprehensive income Items that will not subsequently be reclassified to the income statement: Tax on items that will not be reclassified to the Income statement Items that will not subsequently be reclassified to the Income statement

0.8 0.0

0.0

0.0

0.0

0.0

0.8

0.8 0.0

0.8

0.8 0.0

0.8

Items that are or may be reclassified subsequently to the Income statement: Value adjustment of hedging instruments for the period

-17.9

-17.9

Value adjustment transferred to operating costs

-3.7

-3.7

-3.7

Value adjustment transferred to financial costs

11.9

11.9

11.9

Foreign exchange adjustments, subsidiaries

3.8

Items that are or may be reclassified subsequently to the Income statement

0.0

3.8

-9.7

0.0

0.0

Total other comprehensive income after tax

0.0

3.8

-9.7

0.0

Total comprehensive income

0.0

3.8

-9.7

0.0

-17.9

3.8

0.0

3.8

-5.9

0.0

-5.9

0.0

0.0

0.0

0.8

0.0

-5.2

0.0

-5.2

0.0

151.0

0.0

145.1

-0.1

145.0

-167.9

-167.9

-167.9

-12.1

0.0

0.0

Transactions with owners Dividend paid Dividend on treasury shares

12.1

Vested share-based payments Purchase of treasury shares Cash from sale of treasury shares related to exercise of share options

6.9

6.9

6.9

-35.7

-622.8

-658.5

-658.5

12.6

42.7

55.3

55.3

-0.1

-0.1

Other adjustments Transactions with owners Q1 2017 Equity at 31 March 2017

-0.1

0.0

0.0

0.0

0.0

-23.2

-561.1

-180.0

-764.2

0.0

-764.2

1,200.0

-275.8

29.0

0.1

-82.1

5,146.1

0.0

6,017.3

48.1

6,065.4

20

DFDS INTERIM REPORT Q1 2018

DFDS GROUP – STATEMENT OF CASH FLOWS 2018

2017

2017-18

2017

Q1

Q1

LTM

Full year

Operating profit before depreciation (EBITDA) and special items

453.3

413.9

2,741.7

2,702.3

Cash flow effect from special items related to operating activities

-11.0

0.0

-11.0

0.0

2.3

3.1

18.0

18.8

Change in working capital

-57.9

30.3

-45.8

42.5

Payment of pension liabilities and other provisions

-14.0

-7.6

-70.1

-63.7

372.7

439.8

2,632.8

2,699.9

30.1

17.2

131.6

118.7

-39.3

-46.3

-155.8

-162.8

DKK m

Adjustments for non-cash operating items, etc.

Cash flow from operating activities, gross Interest etc. received Interest etc. paid Taxes paid

-28.5

-4.7

-57.2

-33.5

Cash flow from operating activities, net

335.0

406.0

2,551.3

2,622.2

Investments in ships including dockings, rebuildings and ships under construction (incl. settlement of forward exchange contracts) related thereto

-137.4

-190.1

-1,247.2

-1,299.8

-30.2

-41.3

-203.4

-214.4

5.7

26.4

14.9

35.6

-6.5

-11.3

-46.3

-51.1 0.0

Investments in other non-current tangible assets Sale of other non-current tangible assets Investments in non-current intangible assets Acquisition of enterprises, associates, joint ventures and activities

-69.6

0.0

-69.6

Sale of activities etc.

0.6

0.0

0.6

0.0

Other investing cash flows

2.2

-1.6

-30.5

-34.4

-235.3

-217.9

-1,581.6

-1,564.2

99.7

-245.8

-1,916.0

1,058.0

0.0

0.0

671.6

671.6

-12.7

-12.5

-111.4

-111.2

0.0

0.0

990.5

990.5

-202.8

0.0

-707.7

-504.9

Cash flow to/from investing activities, net Cash flow before financing activities, net Proceed from loans secured by mortgage in ships Repayment and instalments of loans secured by mortgage in ships Proceed from issuance of corporate bonds Repayment of corporate bonds incl. settlement of cross currency swap Change in other non-current investments, net Change in other financial loans, net Payment of financial lease liabilities Acquisition of treasury shares Other non-current receivable

0.4

0.0

0.4

0.0

-5.7

199.7

-228.9

-23.6

-0.5

-21.0

-16.6

-37.1

-160.7

-658.5

-607.9

-1,105.8

0.0

0.0

-111.0

-111.0

59.0

55.3

59.0

55.3

0.0

0.0

11.9

11.9

-0.2

0.0

-0.4

-0.2

Dividends paid

-218.9

-167.9

-606.4

-555.3

Cash flow to/from financing activities, net

-542.2

-604.9

-656.9

-719.7

Net increase (decrease) in cash and cash equivalents

-442.5

-416.9

312.7

338.3

1,033.2

695.6

279.0

695.6

0.4

0.3

-0.7

-0.7

591.1

279.0

591.1

1,033.2

Cash received from exercise of share options Government grants received related to purchase of assets Other financing cash flows

Cash and cash equivalents at beginning of period Foreign exchange and value adjustments of cash and cash equivalents Cash and cash equivalents at end of period * * At 31 March 2018 DKK 0.1m of the cash was deposited on restricted bank accounts. The statement of cash flows cannot directly be derived from the Income Statement and the Balance Sheet.

21

DFDS INTERIM REPORT Q1 2018

NOTE 1 - ACCOUNTING POLICIES Basis of reporting This section provides an overview of our principal accounting policies and 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 2017 except as described below. Implementation of new or changed accounting standards and interpretations DFDS has adopted IFRS 9 – “Financial Instruments: Classification and Measurement of Financial Assets and Financial Liabilities” and IFRS 15 – “Revenue from Contracts with Customers” and all other new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2018. Comparative figures are not restated due to either no impact or insignificant impact on the financial statements. IFRS 9 Financial Instruments IFRS 9 introduces a new impairment loss model for financial assets by replacing IAS 39's "incurred loss model" approach with a more forward-looking "expected credit loss model". Under the new model it is no longer necessary that a credit event has occured before a credit loss is recognised. For DFDS

the new credit loss model primarily apply to trade receivables. In recent years DFDS' realised losses on trade receivables have been insignificant, and the implementation of the new credit loss model has not had any significant impact on DFDS' credit loss provisions and accordingly, no restatement of equity is made as of 1 January 2018. Under IFRS 9, investments in equity instruments are measured at "Fair value through profit loss" (FVTPL), or alternatively at "Fair value through Other comprehensive income without recycling to profit loss" provided that the equity instrument is not held for trading. DFDS' present holding of securities, comprising a minor holding of equity instruments in unlisted enterprises and other investments, was under the replaced IAS 39 classified as "Available for sale" implying that unrealised value adjustments were recognised in Other comprehensive income and attributed to a separate reserve in equity. Following the adoption of IFRS 9 DFDS will from 1 January 2018 recognise its present holding of securities at FVTPL, which implies that the "Revaluation of securities" reserve under equity will be transferred to "Retained earnings". IFRS 15 Revenue from contracts with customers On January 2018, the IFRS 15, "Revenue from Contract with Customers", which replaces IAS 11, IAS 18 and associated interpretations, were implemented. The most important changes resulting from IFRS 15 are:

• the model for recognition of revenue is changed from having been based on the transfer of the risks and rewards of ownership of a product or service to being based on the transfer of control of the product or services transferred to the customer • more detailed guidelines for how elements in a contract of sale are identified, and how the individual components will be recognised and measured • more detailed guidance for recognition of revenue over time.

to additional disclosures in the interim report.

The change in the recognition of revenue from transfer of the risks and rewards to the transfer of control, and the additional guidelines for how elements in the contracts are identified and how the individual components will be recognised and measured has only had an insignificant effect. The Group has concluded that the impact is insignificant and it is assessed that the current accounting policy for variable considerations, such as volume rebates, is consistent with IFRS 15. In conclusion the adoption of IFRS 9, IFRS 15 and all other new, amended or revised accounting standards and interpretations (IFRSs) have either had no impact or insignificant impact on the Group's Financial Statements and accordingly, the equity as of 1 January 2018 has not been restated, except for the holding of securities, which has been transferred from "Revaluation of securities" under equity to "Retained earnings". However, the new standards have led

22

DFDS INTERIM REPORT Q1 2018

NOTE 2 - SEGMENT INFORMATION Shipping

Logistics

Non-

Division

Division

allocated

Total

2,100.9

1,377.5

6.6

3,485.0

199.7

8.0

115.2

322.9

2,300.6

1,385.5

121.8

3,807.9

items

194.1

48.1

-26.2

216.0

Operating profit after special items (EBIT)

193.1

31.4

-35.2

189.3

Shipping

Logistics

Non-

Division

Division

allocated

Total

1,985.7

1,230.2

4.2

3,220.1

168.3

4.7

93.9

266.9

2,153.9

1,234.9

98.1

3,486.9

items

179.9

26.0

-17.0

188.9

Operating profit after special items (EBIT)

179.9

26.0

-22.9

183.0

DKK m Q1 2018 External revenue Intragroup revenue Total revenue Operating profit (EBIT) before special

DKK m Q1 2017 External revenue Intragroup revenue Total revenue Operating profit (EBIT) before special

23

DFDS INTERIM REPORT Q1 2018

NOTE 3 - REVENUE Shipping

Logistics

Division

Division

Non- allocated

Total

North sea

1,183.8

0.0

0.0

1,183.8

Baltic sea

323.6

0.0

0.0

323.6

English Channel

493.7

0.0

0.0

493.7

Continent

0.0

579.6

0.0

579.6

Nordic

0.0

545.7

0.0

545.7

UK/Ireland

0.0

252.2

0.0

252.2

99.8

0.0

0.0

99.8

Other

0.0

0.0

6.6

6.6

Total

2,100.9

1,377.5

6.6

3,485.0

1,405.5

24.3

0.0

1,429.8

3.1

1,337.6

0.0

1,340.7

415.1

0.0

0.0

415.1

88.8

8.8

0.0

97.6

109.9

0.0

0.0

109.9

DKK m Q1 2018 Geographical markets

Mediterranean

Product and services Seafreight and shipping logistics solutions Transport solutions Passenger seafare and on board sales Terminal services Charters Agency and other revenue Total

All material revenue is recognised when each separate obligation in the customer contract is fulfilled following the overtime principle. Most transports carried out by the Shipping Division are charaterised by short delivery time (all sailings are less than 30 hours). Transports carried out by Logistics Division can take delivery over a longer period, but the impact is insignificant.

78.5

6.8

6.6

91.9

2,100.9

1,377.5

6.6

3,485.0

On board sales (5.9% of total revenue) is recognised at a point in time. Revenue from leasing activities (3.6% of total revenue) is not within the scope of IFRS 15, however, the leasing revenue is insignificant and is therefore not excluded in the above table.

24

DFDS INTERIM REPORT Q1 2018

NOTE 4 - SPECIAL ITEMS DKK m

2018

2017

Q1

Q1

-4.9

-5.9

-15.0

0.0

Accrual of the total estimated costs (estimated fair value) related to the DFDS shares awarded to DFDS employees as a special one-off award in connection with DFDS’ 150 years anniversary in December 2016. The costs accrue from December 2016 to February 2020. Costs related to restructuring of Italian rail business. Costs related to restructuring of headquarter functions. Special items, net

-6.8

0.0

-26.7

-5.9

25

DFDS INTERIM REPORT Q1 2018

NOTE 5 - ACQUISITION OF ENTERPRISES AND SALE OF ACTIVITIES 2018

2017

ACQUISITION

DISPOSALS

On 3 January 2018 the acquisition of the Dutch company Alphatrans Group BV headquartered in Rotterdam was completed and the DFDS Group obtained control as from this date. After the acquisition the DFDS Group has 100% ownership of the acquired company and the acquired company is consolidated as from this date.

On 1 November 2017 the divestment of DFDS’ Logistics loss making reefer activities in Belfast to Manfreight Ltd. was completed. For further details of this disposal, refer to the annual report for 2017.

PRELIMINARY FAIR VALUE

The acquisition is 100% made by the subsidiary DFDS Holding B.V. and the acquired company is after the acquisition included in the Continent Business Unit. DFDS paid DKK 116m for the acquired company of which DKK 14m is a deferred payment. Cash in the acquired company amounted to DKK 32m and accordingly the liquidity effect in Q1 2018 was DKK 70m. In addition an earn-out agreement was entered into according to which seller is entitled to additional payment based on the Alphatrans Group’s financial performance combined for 2017 and 2018.

AT ACQUISIDKK M Non-current assets

TION DATE 116.4

Current assets

113.4

Total assets

229.8

Non-current liabilities Current liabilities

41.3 79.5

Total liabilities

120.7

Fair value of acquired net assets

109.1

Total purchase price Cash consideration Deferred consideration Estimated value of earn-out Fair value of the purchase price Preliminary goodwill at acquisition

101.9 13.6 20.4 136.0 26.9

Alphatrans Group’s estimated revenue for 2018 is DKK 350m. Transaction costs incurred were insignificant and were expensed in 2017 as part of Administration costs. The preliminary purchase price allocation show the following.

26

DFDS INTERIM REPORT Q1 2018

NOTE 6 - FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS The table discloses fair value and carrying amount of financial instruments measured at fair value in the balance sheet. Furthermore, categorisation of the valuation method according to the fair value hierarchy is stated. Transfers between levels of the fair value hierarchy are considered to have occurred at the date of the event or change in circumstances that caused the transfer. There were no transfers between the levels in the fair value hierarchy in 2018.

TECHNIQUES FOR CALCULATING FAIR VALUES

Q1 2018

Q1 2017 Carrying

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.

DKK m

Carrying

Fair value

amount

Fair value

amount

Derivatives (Level 2)

25.8

25.8

44.8

44.8

Securities (Level 3)*

9.5

9.5

0.0

0.0

143.0

143.0

150.8

150.8

Financial assets

Financial liabilities Derivatives (Level 2)

* In 2017 securities were measured at cost reduced by write-downs, if any, and consequently, they were not included in the fair value hierarchy. Following the implementation of IFRS 9 the securities must be measured at fair value.

27

DFDS INTERIM REPORT Q1 2018

NOTE 7 - SUPPLEMENTARY FINANCIAL INFORMATION ON THE PARENT COMPANY As a result of DFDS A/S' issuance of corporate bonds on Oslo Stock Exchange there is a requirement to provide certain supplementary financial information on the Parent Company. The following financial information has been prepared using the same accounting policies as for the Annual report for 2017. However, DFDS has adopted all new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2018. For further description reference is made to note 1 Accounting policies. The Parent Company’s revenue increased by DKK 161.1m, equivalent to 7.8%. Operating profit before depreciation and special items (EBITDA) decreased from DKK 260.0m to DKK 222.7m, equivalent to a decrease of 14.3%.

2018

2017

2017-18

2017

Q1

Q1

LTM

Full year

2,225.2

2,064.1

9,677.0

9,515.9

(EBITDA) and special items

222.7

260.0

1,779.3

1,816.6

Operating profit (EBIT) before special items

102.3

128.8

1,303.4

1,329.9

Special items, net

-5.6

-1.5

90.0

94.1

Operating profit (EBIT)

96.7

127.3

1,393.4

1,424.0

DKK m Income statement Revenue Operating profit before depreciation

Financial items, net

-5.4

-2.7

453.0

455.7

Profit before tax

91.3

124.6

1,846.4

1,879.7

Profit for the period

91.2

122.4

1,847.0

1,878.2

Assets Non-current intangible assets Non-current tangible assets

363.4

356.3

367.1

4,288.9

5,256.3

4,292.9

3,954.6

3,896.1

3,951.3

142.0

36.4

120.7

8,749.0

9,545.1

8,732.0

958.6

611.9

963.5

Investments in affiliated companies, associates and joint ventures Other non-current assets Non-current assets Current receivables from affiliated compa-

Profit before tax decreased from DKK 124.6m in Q1 2017 to DKK 91.3m in Q1 2018.

nies

The Parent Company’s net interest-bearing debt increased from DKK 3,321.8m at 31 December 2017 to DKK 3,602.5m at 31 March 2018.

Receivables from associates and joint ventures

53.5

50.8

53.4

Cash

447.8

203.3

937.6

Other current assets

1,075.6

1,008.6

939.1

Current assets

2,535.5

1,874.6

2,893.6

11,284.5

11,419.8

11,625.5

Equity

4,719.2

4,103.1

4,961.5

Non-current liabilities

2,446.7

1,544.7

2,438.8

Current liabilities to affiliated companies

2,508.4

2,545.4

2,507.8

Other current liabilities

1,610.1

3,226.7

1,717.3

Current liabilities

4,118.6

5,772.1

4,225.2

11,284.5

11,419.8

11,625.5

41.8%

35.9%

42.7%

3,602.5

5,109.3

3,321.8

Assets Equity and liabilities

Equity and liabilities Equity ratio, % Net interest-bearing debt

28

DFDS INTERIM REPORT Q1 2018

DEFINITIONS

Operating profit before depreciation (EBITDA) Profit before depreciation and impairment on non-current assets Operating profit (EBIT)

Profit after depreciation and impairment on non-current intangible and tangible assets

Operating profit margin

Operating profit (EBIT) before special items × 100 Revenue

Net operating profit after taxes (NOPAT)

Operating profit (EBIT) minus payable tax for the period adjusted for the tax effect of net finance cost

Invested capital

Net working capital (non-interest bearing current assets minus non-interest bearing current liabilities) plus non-current intangible and tangible assets minus pension and jubilee liabilities and other provisions

Net Interest-bearing debt

Interest-bearing liabilities (excluding provision for pensions) minus interest-bearing assets minus cash and securities

LTM

Last twelve months

Return on invested capital (ROIC)

Net operating profit after taxes (NOPAT) × 100 Average invested capital

Free cash flow (FCFF)

Cash flow from operating activities excluding net interest received and paid minus cash flow from net investments

Return on equity

Profit for the period excluding non-controlling interests × 100 Average equity excluding non-controlling interests

Equity ratio

Equity at end of period × 100 Total assets

Earnings per share (EPS)

Profit for the period excluding non-controlling interests × 100 Weighted average number of ordinary shares in circulation

P/E ratio

Share price at the end of the period × 100 Earnings per share (EPS)

Dividend per share

Dividend for the year × 100 Number of shares at the end of the period

Market value

Number of shares, ex. treasury shares, end of period times share price end of period

No. of ships

Owned and chartered ships, including slot charter and vessel sharing agreements

Roundings may in general cause variances in sums and percentages in this report.

29