INTERIM AND YEAR-END REPORT Q4 2016
SOLID Q4 AND STRONG 2016
Q4 EBITDA UP BY 23% TO DKK 513M
2016 EBITDA UP BY 27% TO DKK 2.6BN
INCREASED DISTRIBUTION TO SHAREHOLDERS
DFDS INTERIM AND YEAR-END REPORT Q4 2016
Q4 2016 We have raised our earnings level considerably during 2016. Nonthe- less, our pursuit of improvement will continue. We are especially ex- DFDS A/S cited about exploring digital opportunities to improve customer satis- Sundkrogsgade 11 • Continued growth in faction and operational efficiency. DK-2100 Copenhagen Ø
freight volumes Niels Smedegaard, CEO CVR 14 19 47 11
• 6% revenue growth, Revenue increased by 6% in Q4 adjusted for Increased distribution to shareholders www.dfdsgroup.com currency changes and excluding revenue DFDS’ Board of Directors has decided to in- adjusted from bunker surcharges. Reported revenue crease the distribution to shareholders in 7 February 2017 Company announcement no. was up by 1% to DKK 3.4bn. light of the higher level of earnings and 10/2017 • Profit before special items alignment of the financial leverage to the and tax increased 50% to EBITDA before special items increased in Q4 policy on capital structure and distribution. CONTACT by 23% to DKK 513m following higher earn- DKK 268m Niels Smedegaard, CEO ings in primarily the Shipping Division. The proposed dividend is increased by 33% +45 33 42 34 00 to DKK 8.00 per share and two share buy- • ROIC increased to 17.8% Revenue increased for the full-year by 8% backs totalling DKK 800m are launched for Torben Carlsen, CFO adjusted for currency changes and excluding completion on 21 February and 15 August +45 33 42 32 01 revenue from bunker surcharges. Reported respectively. See page 6 and separate an- revenue was up by 2% to DKK 13.8bn. nouncement for details. Søren Brøndholt Nielsen, IR OUTLOOK 2017 +45 33 42 33 59 EBITDA before special items increased for Outlook 2017 the full-year by 27% to DKK 2,588m follow- The Group’s revenue growth is expected to Gert Jakobsen, Communications • Revenue growth of 4%, ing higher earnings in primarily the Shipping be around 4%, excluding revenue from bun- +45 33 42 32 97 adjusted Division. ker surcharges. CONFERENCE CALL • EBITDA outlook of The Shipping Division’s route network car- The Group’s EBITDA before special items is TODAY AT 11.00 AM. CET ried 17% higher freight volumes and 6% expected to be within a range of DKK 2,600- Phone numbers to the call: DK +45 70223500 DKK 2.6-2.8bn more passengers in Q4. The full-year growth 2,800m (2016: DKK 2,588m). US +1 646 722 4972 rates were 21% and 12% respectively. • Investments of DKK 0.9bn UK +44 20 75721187
plus expected payment of Access code: 90002377#
DKK 0.8bn for two KEY FIGURES DISCLAIMER Channel-ferries DKK m Q4 Q4 FY FY The statements about the future Before special items 2016 2015 ∆ % 2016 2015 ∆ % in this announcement contain risks and uncertainties and actual develop- Revenue 3,351 3,324 0.8% 13,790 13,473 2.4% ments may therefore diverge EBITDA 513 418 22.6% 2,588 2,041 26.8% significantly from the statements EBIT 271 201 34.8% 1,644 1,199 37.0% about the future. Profit before tax 268 178 50.2% 1,600 1,079 48.4%
2 DFDS INTERIM AND YEAR-END REPORT
DFDS GROUP KEY FIGURES
2016 2015 2016 2015 2016 2015 2016 2015 DKK m Q4 Q4 Full year Full year DKK m Q4 Q4 Full year Full year
Income statement Cash flows evenue ash flo s fro opera ing ac ivi ies before • Shipping Division financial i e s an af er a • ogis ics Division ash flo s fro inves ing ac ivi ies • on alloca e i e s • Ac uisi ion of en erprises an ac ivi ies • Eli ina ions • her inves en s ne pera ing profi before eprecia ion Free cash flo EBITDA an special i e s Key operating and return ratios • Shipping Division Average nu ber of e plo ees • ogis ics Division u ber of ships • on alloca e i e s evenue gro h rofi loss on isposal of non curren EBITDA argin asse s ne pera ing argin pera ing profi EBIT before evenue inves e capi al average i es special i e s e urn on inves e capi al I Special i e s ne I before special i e s pera ing profi EBIT e urn on e ui Financial i e s ne
rofi before a Key capital and per share ratios rofi for he perio E ui ra io rofi for he perio e clu ing e in eres bearing eb EBITDA i es non con rolling in eres Earnings per share E S D
Divi en pai per share D Capital u ber of shares en of perio To al asse s eigh e average nu ber of circula ing DFDS A S share of e ui shares E ui Share price D e in eres bearing eb ar e value Inves e capi al en of perio Inves e capi al average Defini ions on page
3 INTERIM AND YEAR-END REPORT
MARKET OVERVIEW AND OUTLOOK IMPORTANT EVENTS AFTER Q4 ’s Europe’s most of DFDS’ ANNUAL GENERAL MEETING Acquisition of Scottish transport company DFDS’ annual general meeting will be held To further develop DFDS’ logistics services, DFDS A/S’ holding of Sale of shares in Danish Ship Finance FINANCIAL PERFORMANCE Revenue The Group’s revenue in Q Logistics expands Sweden-Italy services Shetland Transport’s revenue was GBP 10m The Shipping Division’s
IMPORTANT EVENTS IN Q4 All DFDS’ employees became shareholders 26% more ferry capacity on Channel DFDS’ employees in recent years to the company’s growth and to celebrate the company’s 150 year anniversary, the Board
4 DFDS A D A D Q 01
The Logistics Division’s Q revenue of unit Secondly, Baltic Sea’s result increased DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS D 1, 5m decreased by and by driven by a mi of volume growth, higher D m 5 ad usted for the ac uisition of Shet average unit revenue and operational land Transport on 1 ovember 01 ev changes Despite lower passenger volumes 1,100 1,000 enue was up by 0 ad usted for currency and a negative impact from the depreciation 00 changes The addition of new logistics con of GBP, Passenger’s result increased due to 00 tracts in England and Germany, as well as savings on both bun er costs and other op 00 revenue growth for a number of traffics in erating costs 00 ordic and ontinent, was offset by reduced 500 fuel surcharges, as well as lower tempera The Logistics Division’s Q EB TDA increased 00 ture controlled and steel volumes in the by to D 0m as improved results for 00 the ordic and ontinent business units 00 For the full year, the Group’s revenue in were partly offset by a lower result for 100 0 creased by to D 1 , 0m in 01 reland following lower temperature con Q1 Q Q Q evenue increased by e cluding reve trolled and steel volumes as well as a nega nue from bun er surcharges and by tive impact from the depreciation of GBP 01 015 01 when also ad usted for currency changes For the full year, the Group’s EBITDA in- The Shipping Division s revenue increased by creased by to D ,5 m following to D , m and by e cluding an increase in the Shipping Division s D m ha e ha e revenue from bun er surcharges and by EB TDA by to D , m and an in Shipping Division , ,1 0 10 when also ad usted for currency crease in the ogistics Division s EB TDA by ogistics Division 1, 5 1, 5 changes The Logistics Division’s revenue de to D 5 m on allocated costs in on allocated items 1 creased by 1 to D , 0m and in creased by to D 10 m Eliminations 1 creased by ad usted for currency DFDS ro p changes Deprec a o a d opera pro be
ore spec al ems A F F D A DA S A S pera pro be ore deprec a o Depreciation in Q increased by 5 to DA a d spec al ems D m The increase was primarily re D m ha e ha e The Group’s EBITDA increased by to lated to higher ship depreciations, including Shipping Division 5 5 110 D 51 m in Q primarily driven by higher depreciations related to the addition of two ogistics Division 0 5 5 earnings in the Shipping Division ferries on Dover alais For the full year, de on allocated items 5 1 0 1 preciation increased by 1 to D 5m DFDS ro p The Shipping Division’s Q EB TDA increased EB TDA margin, 15 1 1 by to D 5m The two ey drivers The Group’s EBIT before special items for Q of the increase was a considerable improve was D 1m, an increase of 5 com ment of hannel’s result driven by high pared to 015 For the full year, the Group’s volume growth that was enabled by the e EB T before special items increased by pansion of ferry capacity in the business to D 1, m
D DS A D A D Q
ASS A S A D S F S D S SA S A D D A or the full-year, the free cash flo es ed cap al a d as D , m after investments of Invested capital increased by to D m ha e ha e D , m D , m at the end of Q compared to EBITDA before special items year-end The increase as mainly Associates and oint ventures n a The cash flo from financing activities as due to the addition of t o hannel-ferries Profit on disposals - - negative by D m in Q , including a and the e ercise of a purchase option for a Depreciation and impairment - - - - distribution to shareholders of D m ship Average invested capital increased by be ore spec al ems through buybac of shares The net cash to D , m flo for Q as negative by D m and F A A S at the end of Q cash amounted to or the full-year, the return on invested cap- D m ital, I , as before special items D m ha e ha e compared to for Including spe- Interest, net - - ap al s r c re cial items, I as compared to oreign e change gains losses, net - - n a - At the end of Q net-interest-bearing debt for ther items n a IBD as D , m up from o al a ce e D , m at year-end The increase as primarily due to the finance lease of AS D D S
t o hannel ferries, the e ercise of a pur- S A D S F a c al ems or the full-year, the profit before ta in- chase option for a ship and distribution to The total net cost of financing in Q in- creased by to D , m The profit shareholders DFDS’ Board of Directors has decided to in- creased by D m after ad ustment for a after ta as D , m follo ing a ta crease the distribution to shareholders in gain of D m from the sale of shares in on profit of D m inancial leverage, as measured by the ratio light of the higher level of earnings and Danish Ship inance of IBD to the full-year EBITDA before spe- alignment of the financial leverage to the ar s per share cial items, as a multiple of and on par policy on capital structure and distribution or the full-year, the total net cost of fi- Earnings per share EPS for the uarter in- ith year-end The e uity ratio as nancing decreased by D m ad usted for creased to D from D in Q at the end of Q The Board of Directors proposes to the a gain of D m from the sale of shares , an increase of annual general meeting AG a divi- in Danish Ship inance Both a lo er net in- y dend of D per share In addition, the terest cost and net currency ad ustments Earnings per share EPS for the full-year in- E uity amounted to D , m at the end Board of Directors plan to distribute a fur- contributed to the lo er cost creased to D from D in of Q , including minority interests of ther dividend of D per share in Au- , an increase of D m This as above year-end gust The total dividend payment in ro be ore a d a er a as total comprehensive income for is thus e pected to amount to around The profit before ta for Q increased by ash lo a d es me s as D , m hile transactions D m, e cluding dividend for treasury to D m The profit after ta as The free cash flo of Q as ith o ners reduced e uity by shares D m follo ing a positive ta on profit D m after investments of D m D , m, including dividends of of D m due to ad ustments to previous that included ac uisitions and do n pay- D m, buybac of shares of D m In addition, t o share buybac s totalling years ments on t o ne buildings and an income of D m from the sale of D m are announced today treasury shares related to the e ercise of share options
DFDS A D A D
he first ac of D ith co - ri ari Bene er an and France is D m loo etion on Fe r ar is str ct red e ected to contin e on e e ith as an a ction rocess offered direct to a e en e ro th shareho ders Frei ht o es are therefore e ected to B D efore s ecia ite s - ro or re ain on e e ith on ost er di ision he second ac of D i start routes in DFDS’ network in 2017. Capacity Shi in Di ision - on Fe r ar to e co eted on has een and i e e anded on se era o istics Di ision - st at the atest ro tes to acco odate e ected ro th on-a ocated ite s - - De reciation chan e - - assen er o es ost o ent d rin he Board of Directors conse ent an to S ecia ite s - - distri te a tota of D n to share- as tra e as red ced fo o in ter- n est ents - - ho ders in n addition D has rorist attac s and the de reciation of B in a read een distri ted in thro h the a e of Bre it in ne oreo er c din n er s rchar es the share ac that as co eted on i rant iss es in a ais i acted tra e
Fe r ar ne ati e on the Do er Strait he Logistics Division’s EBITDA before s e- ar o carr in e i ent and areho s- F rther infor ation on oth ac s are Passenger volumes in DFDS’ route network cia ite s is e ected to e ithin a ran e in ain re ated to the o istics Di i- a ai a e in a se arate anno nce ent re- are in e ected to e on e e or of D - D sion D eased toda s i ht e o a tho h a ore fa or- ther in est ents inc din de e o ent a e en iron ent for assen er tra e co d S ecia ite s of D - are re ated to of -s ste s D e er e in the a ard of shares to e o ees ricin is e ected to re ain co etiti e in n est ents are e ected to a o nt to n er of ris s and ncertainties ertain he ro ean ro th o t oo is s orti e oth frei ht and assen er ar ets aro nd D n in his inc des an to the o t oo he ost i ortant a on for DFDS’ infrastructure of ferry routes and e ected a ent of aro nd D for these are ossi e a or chan es in the de- o istics o erations The Group’s revenue is expected to increase the rchase of t o hanne -ferries in ne and for ferr shi in and trans ort and aro nd e c din re en e fro n- he ferries ere de i ered in Fe r ar o istics ser ices For DFDS s ch de and he c rrent oderate econo ic ro th is er s rchar es he re en e ro th is e - on finance eases and ere conse- is to a ar e e tent in ed to the e e of expected to continue in DFDS’ key market ected to e aro nd inc din n er ent ca ita ised at that ti e he e - econo ic acti it in ri ari ro e es e- areas in northern ro e in a eit at s rchar es ected rchase i therefore not i act cia northern ro e and in artic ar the different e e s DFDS’ financial leverage. fo o in its decision to ea e the The Group’s EBITDA before special ite s is t a so ad acent re ions as e as to co - he hi hest e e of ro th is e ected for e ected to e ithin a ran e of he re ainin in est ents of D etitor actions he o t oo can a so e i - D - D the Baltic countries while the UK’s growth is co rise acted o itica chan es first and fore- e ected to s o do n t re ain ositi e ost ithin the as e as chan es in The Shipping Division’s EBITDA before s e- in Doc in s and shi rades D econo ic aria es es ecia the oi rice cia ite s is e ected to e ithin a ran e e i din s D and e chan e rates onse ent the f - of D - D he ro th in Scandina ia and the ost i - ort ter ina s D t re financia res ts a differ si nifi-
ortant continenta econo ies for DFDS cant fro e ectations
DFDS A D A D 201
In November 2016 DFDS acquired Shetland Transport head- quartered in Lerwick on Shetland, Scotland.
Shetland Transport provides transport services to and from the islands of Shetland and Orkney to the Scottish mainland. The primary activity is temperature controlled logistics ser- vices to producers and suppliers of fresh and frozen seafood.
DFDS A D A D 201
S S D S D m F ll year F ll year evenue 2 020 2 0 2 7 2 2 1 2 1 2 77 2 1 071 EBITDA before special items 7 0 27 2 1 17 1 1 0 Share of profit loss of associates and The Shipping Division operates oint ventures 1 0 2 0 0 11 DFDS’ route network organised Profit loss on disposal of non current assets net 0 2 2 0 0 0 1 0 1 Depreciation and impairment 1 21 20 211 2 1 172 1 7 1 0 71 in five business units EBIT before special items 17 722 2 1 1 1 1 2 1 1 1 0 EBIT margin before special items . 17. 2 . 12. 17.0 1.0 1 .7 2 . . 1 .0 Special items net 0 7 0 1 0 0 0 orth Sea EBIT 17 27 722 27 1 00 1 2 2 1 1 1 1 Baltic Sea Invested capital average 7 1 17 202 1 7 71 7 1 7 2 7 7 7 IC before special items 1 . 1 . Channel Lane metres 000 10 0 77 7 7 7 2 7 2 0 2 1 1 France editerranean Passengers 000 1 20 1 7 2 2 70 1 2 7 1 2 1 1
Passenger
A A A D S al c Sea and start up costs related to the new route DS Freight volumes in were 1. above anko Paldiski. 201 and up by 11. ad usted for the ad or h Sea dition of a new route between anko Fin ha el Freight volumes in were 7.0 above land and Paldiski Estonia in ctober 201 . Freight volumes in increased by 20. 201 . All routes contributed to the growth All routes contributed to the growth in vol while passenger volumes increased by in volumes. Growth was highest on the Swe umes. The volume growth was supported by 7.2 . The high volume growth reflects the den Belgium and etherlands UK corridors the deployment of a third ship between expansion of capacity on Dover Calais from that were both supported by additional ca Sweden and Lithuania that in also made two to three ferries compared to last year. pacity. Automotive volumes were generally calls between Denmark and Lithuania. Pas The total number of sailings for both routes high in the uarter. senger volumes increased by 17. as vol increased by 2 compared to last year. umes were boosted by the addition of EBIT increased by 7 to DKK 12 m driven anko Paldiski. Total freight volumes on the Dover Strait primarily by the higher volumes. including the tunnel increased by .2 in EBIT increased by to DKK 7 m mainly compared to 201 while the number of driven by higher volumes that offset costs passengers decreased by . and the num for additional capacity on several routes ber of cars decreased by 0. .
A D A D
Fra ce ed erra ea asse er
A D A D
S D S
D m F ll year F ll year S A
A S A
A
F A D A A
ASS
A A D S
A D A D
S S S S D S D m F ll year F ll year DFDS’ logistics activities
A A A D S DS ord c o e rela d
DFDS A D A D
S S D S
D m F ll year F ll year
ord c eve e e o e s ecial ite s veste ca ital e o e s ecial ite s its o s
o e eve e e o e s ecial ite s veste ca ital e o e s ecial ite s its
rela d eve e e o e s ecial ite s veste ca ital e o e s ecial ite s its
o alloca ed ems eve e e o e s ecial ite s
cl i g vol es elate to a to otive ogistics co t act cl i g vol es o a lage S etla t o ove e e i veste ca ital i t e a te is s o as e t e e o t e e io Fo t e ll ea t e i veste ca ital is s o as a ave age
DFDS A D A D
A A S A
e oa o Di ecto s a t e ec tive oa ave evie e a a ove t e i te i e o t o DFDS S o t e e io a a – Dece e
e i te i e o t ic as ot ee a dited or reviewed by the Company’s auditor, as ee e a e i acco a ce it S “ te i Fi a cial e o ti g” as a o te t e a a itio al Da is i te i e o ti g e i e e ts o liste co a ies
o o i io t e i te i e o t gives a true and fair view of the DFDS Group’s as- sets lia ilities a i a cial ositio at Dece e a o t e es lts o t e DFDS Group’s operations and cash flow for t e e io a a – Dece e
F t e i o o i io t e a age e t e vie gives a t e a ai evie o the development in the Group’s operations a i a cial atte s t e es lt o t e
DFDS o ’s operations o t e e io a t e i a cial ositio as a ole
o e age Fe a D S S D AA D esi e t A S F
D F D S S AA D ai A S S De t ai S S DS A A S A S S D A S D
DFDS A D A D
DFDS S A
D m o e F ll year F ll year
evenue , , , ,
Costs peratin costs - , - , - , - , Charter hire - - - - mployee costs - - - , - , Costs of sales and administration - - - -
pera pro be ore deprec a o DA a d spec al ems
Share of profit loss of associates and oint ventures - - - - rofit loss on disposal of non-current assets, net Depreciation, ships - - - - Depreciation, other non-current assets - - - - mpairment losses, ships and other non-current assets - - - -
pera pro be ore spec al ems
Special items, net - - - -
pera pro
Financial income Financial costs - - - -
ro be ore a
a on profit - -
ro or he per od
ttributable to uity holders of DFDS S , , on-controllin interests - - - ro or he per od
ar s per share asic earnin s per share S of D , D Diluted earnin s per share S-D of D , D
DFDS A D A D
DFDS S
D m F ll year F ll year
rofit for the period , ,
her comprehe s e come tems that will not subse uently be reclassified to the ncome statement emeasurement of defined benefit pension obli ations - - - a on items that will not be reclassified to the ncome statement - - ems ha ll o be reclass ed s bse e ly o he come s a eme tems that are or may subse uently be reclassified to the ncome statement alue ad ustment of hed in instruments alue ad ustment for the period - - alue ad ustment transferred to operatin costs - alue ad ustment transferred to financial costs - alue ad ustment transferred to non-current tan ible assets - -
Forei n e chan e ad ustments, subsidiaries - - nrealised value ad ustment of securities - - ealised value ad ustment of securities transferred to financial items - - mpairment of securities transferred to financial costs ems ha are or may s bse e ly be reclass ed o he come s a eme
o al o her comprehe s e come a er a o al comprehe s e come
A r b able o uity holders of DFDS S , , on-controllin interests - - - o al comprehe s e come
DFDS A D A D
A A S ASS S A D A S
D m o e F ll year F ll year D m F ll year F ll year
Goodwill Share capital , , ther non-current intan ible assets eserves - - Software etained earnin s , , Development pro ects in pro ress roposed dividends o c rre a ble asse s y a r b able o e y holders o DFDS A S
and and buildin s on-controllin interests erminals y Ships , , uipment, etc nterest bearin liabilities , , ssets under construction and prepayments Deferred ta o c rre a ble asse s ension and ubilee liabilities ther provisions nvestments in associates and oint ventures Derivative financial instruments eceivables o c rre l ab l es Securities Deferred ta nterest bearin liabilities Derivative financial instruments rade payables , , her o c rre asse s ayables to associates and oint ventures ther provisions o c rre asse s Corporation ta nventories ther payables rade receivables , , Derivative financial instruments eceivables from associates and oint ventures Deferred income ther receivables rre l ab l es repayments iabilities relatin to assets classified as held for sale Derivative financial instruments ab l es Cash , y a d l ab l es rre asse s ssets classified as held for sale o al c rre asse s
Asse s
DFDS A D A D
DFDS S A F A S A A – D
S S y e al a o a r b able o Share ra sla o ed o reas ry e a ed roposed o e y holders co roll D m cap al reser e eser e sec r es shares ear s d de ds o DFDS A S eres s o al uity at anuary , - - - , omprehe s e come or he per od rofit for the period , her comprehe s e come tems that will not subse uently be reclassified to the income statement emeasurement of defined benefit pension obli ations - a on items that will not be reclassified to the ncome statement - ems ha ll o s bse e ly be reclass ed o he come s a eme tems that are or may subse uently be reclassified to the ncome statement alue ad ustment of hed in instruments for the period alue ad ustment transferred to operatin costs alue ad ustment transferred to financial costs - alue ad ustment transferred to non-current tan ible assets - Forei n e chan e ad ustments, subsidiaries - - nrealised value ad ustment of securities ealised value ad ustment of securities transferred to the income statement - ems ha are or may s bse e ly be reclass ed o he come s a eme o al o her comprehe s e come a er a o al comprehe s e come ra sac o s h o ers c uisition, non-controllin interests - roposed dividend, e traordinary - Dividend paid - Dividend on treasury shares - traordinary dividend paid - traordinary dividend on treasury shares - roposed dividend by year-end - ested share-based payments urchase of treasury shares - - Cash from sale of treasury shares related to e ercise of share options eduction of share capital by cancellation of treasury shares - ther ad ustments - ra sac o s h o ers y a December
DFDS
–
uity at anuary , - - - ,
rofit for the period , - tems that will not subse uently be reclassified to the income statement emeasurement of defined benefit pension obli ations - a on items that will not be reclassified to the ncome statement tems that are or may subse uently be reclassified to the ncome statement alue ad ustment of hed in instruments for the period - alue ad ustment transferred to operatin costs alue ad ustment transferred to financial costs Forei n e chan e ad ustments, subsidiaries nrealised value ad ustment of securities - nrealised impairment of securities transferred to financial costs
c uisition, non-controllin interests - roposed dividend, e traordinary - Dividend paid - Dividend on treasury shares - urchase of treasury shares - - roposed dividends year end - ested share-based payments Cash from sale of treasury shares related to e ercise of share options eduction of share capital by cancellation of treasury shares - ther ad ustments he ma ority of amounts included in ther comprehensive income relates to Group companies which are ta ed under tonna e ta schemes here is no ta on this
DFDS
Cash flow effect from special items related to operatin activities - - - - d ustments for non-cash operatin items, etc Chan e in wor in capital ayment of pension liabilities and other provisions - - - - nterest etc received nterest etc paid - - - - a es paid - - - - nvestments in ships includin doc in s, rebuildin s and ships under construction incl settlement of forward e chan e contracts - - - - Sale of ships includin net compensation for ship declared total loss nvestments in other non-current tan ible assets - - - - Sale of other non-current tan ible assets nvestments in non-current intan ible assets - - - - c uisition of enterprises, associates, oint ventures and activities - - - Capital contribution to oint ventures - Sale of activities etc Sale of securities Dividend from associates and oint ventures roceed from loans secured by mort a e in ships epayment and instalments of loans secured by mort a e in ships - - - - epayment of corporate bonds incl settlement of cross currency swap - Chan e in other non-current investments, net - Chan e in other financial loans, net - - - - ayment of financial lease liabilities - - - - Chan e in operatin credits - - - - Chan e in loan to associates and oint ventures - - - c uisition of non-controllin interests - - - c uisition of treasury shares - - - - Cash received from e ercise of share options Government rants related to purchase of assets Dividends paid - - Cash and cash e uivalents at be innin of period , , Forei n e chan e and value ad ustments of cash and cash e uivalents - -
he cash flow statement cannot directly be derived from the income statement and the balance sheet
DFDS
his interim report has been prepared in ac- cordance with IAS 34 ‘Interim Financial Re- porting’ as adopted by the EU and addi- tional Danish disclosure re uirements for in- terim reports of listed companies he in- ternal revenue , , , terim report has been prepared usin the ntra roup revenue same accountin policies as for the annual otal revenue , , , report for DFDS has adopted all new, amended or revised accountin standards and interpretations F Ss endorsed by the effective for the accountin period be- innin on anuary hese F Ss have not had any material impact on the Group s interim report he detailed accountin policies for will be available in the annual report ternal revenue , , , that is to be released February ntra roup revenue
otal revenue , , ,
F S 4
A ter the ac isition the F S ro p has ownership o the ac ired company and the ac ired company is consolidated n September F S entered into an Ad stment o estimated earn-o t to the sellers regarding the ac isition o the as rom this date he ac isition is agreement with the Estonian company ro te apells r- aldis i ac ired in the ac isition o ayside ro p in made by the s bsidiary F S ogistics Navirail OÜ to acquire the company’s freight td and the ac ired company is a ter the 4 and the acti ities o eltrin s r o in ech Rep blic in - - and passenger ro te ro-pa between al- ac isition incl ded in the U Ireland Accr al o the total estimated costs estimated air al e related to the F S dis i Estonia and an o Finland he siness Unit shares awarded to F S employees as a special one-o award in connection transaction was appro ed by the Estonian with DFDS’ 150 years anniversary in December 2016. The costs will accrue from ompetition A thorities at September F S paid 4m or the ac ired ecember to Febr ary otal air al e at date o awarding the and the ro te is consolidated with e - company and cash in the ac ired com- shares is estimated at m - ect rom ctober pany amo nted to 4m and accord- Impairment o installation on a ship - ingly the li idity e ect was 3 m he ro te has been ac ired by F S osts related to designing and implementing one gro p wide inance ser ice In addition two earn-o t agreements ha e A/S. The route expands DFDS’ network in the been entered into according to which centre incl ding ad isor costs red ndancies etc - northern part o the altic Sea and comple- DFDS, based on the acquired company’s fi- ain regarding sale o the ro-ro reight ship Flandria Seaways 3 ments DFDS’ existing route between Pal- nancial per ormance or and dis i and apells r Sweden may pay an additional cash con-
sideration in the range o - m in F S has not paid any p ront considera- total tion An earn-o t agreement has been en- changes to estimates o contingent considera- tered with the seller according to which ased on the ac ired company’s esti- Special items incl de signi icant income and e - tions related to b siness combinations gains and F S m st pay o the ro te s acc m - mated earnings the earn-o t agreements penses not directly attributable to the Group’s re- losses on the disposal o acti ities and signi i- lated E I or si years ased on the e pec- are estimated to m onse ently c ring operating acti ities s ch as material str c- cant gains and losses on the disposal o non-c r- tations to the ro te s earnings or the earn- the total p rchase price is calc lated at t ring o processes and signi icant organi ational rent assets o t period the net present al e o the 4 m he estimated yearly re en e restr ct rings changes which are o signi icance earn-o t is estimated at 3 m he es- is to 4m o er time In addition other non-rec rring hese items are classi ied separately in the in- timated yearly re en e is m ood- amo nts are classi ied as special items incl ding come statement in order to pro ide a more trans- will amo nt to 3 m ransaction costs were insigni icant and impairment o goodwill signi icant impairments parent iew o income and e penses that are con- ha e been e pensed as part o administra- o non-c rrent tangibles assets signi icant trans- sidered not to ha e rec rring nat re n 4 o ember the ac isition o tion costs oodwill amo nt to m action costs and integration costs in connection the Scottish company a lage Shetland with large b siness combinations td was completed and the F S ro p obtained control as rom this date
DFDS 2016
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On 21 December 2016 the acquisition of During 2 2016 the ro-pax ship ilnius Sea- At 1 December 2015 Assets held for sale the Swedish company talcargo A Swe- 1 February 2015 the DFDS Group obtained ways ceased to be classified as held for sale non-recurring fair value measurement den was completed and the DFDS Group control and 100 ownership of the logistics as management assessed that the criteria comprise of the former Norfolkline domicile obtained control as from this date. After activities from eltrin S. .O. in ech epub- for being classified as held for sale was no in Scheveningen with a carrying amount of the acquisition the DFDS Group has 100 lic. 2 arch 2015 the DFDS Group acquired longer met. Accordingly, the ship was D 1 .5m and the ro-pax ship ilnius Sea- ownership of the acquired company and certain logistics activities, including employ- moved back to Non-current tangible assets ways with a carrying amount of D 5. m. the acquired company is consolidated as ees, certain operating assets and lease at the carrying amount the ship had before from this date. The acquisition is 100 agreements of operating equipment, from it was classified as held for sale, ad usted made by the subsidiary DFDS Seaways olvo A in Sweden. For further details of for depreciations etc, that would have been olding A and the acquired company is these acquisitions, refer to the annual re- recognised had the ship not been classified after the acquisition included in the Nordic port for 2015. as held for sale. usiness nit. n 2 2016 the variance between this ad- DFDS paid D 1 . m of which a pay- usted carrying amount and the carrying ment of D 0. m is deferred for the ac- amount recognised under held for sale at quired company and cash in the acquired the time the ship ceased to be classified as company amounted to D 5.1m and ac- held for sale has been expensed under De- cordingly, the liquidity effect in 2016 was preciation, ships by an amount of D D 1 . m. The estimated yearly revenue 1 .2m. is D 50m. At 1 December 2016 Assets held for sale Transaction costs were insignificant and non-recurring fair value measurement only have been expensed as part of administra- comprise the former Norfolkline domicile in tion costs. Goodwill amount to D . m Scheveningen with a carrying amount of in the preliminary purchase price alloca- D 1 .5m. DFDS is in advanced discus- tion. sions with a potential buyer.
DFDS 2016
The table discloses fair value and carrying amount of financial instruments measured During the year financial assets available at fair value in the balance sheet. Further- for sale measured at level has included more, categorisation of the valuation non-listed shares in Danish Ship Finance method according to the fair value hierar- Danmarks Skibskredit A/S . n prior years chy is stated. these shares have been measured at cost. Derivatives evel 2 5 .6 5 .6 .5 .5 owever, in September 2016 the ma ority Assets held for sale non-recurring fair value Transfers between levels of the fair value of the share capital was traded and conse- measurement evel 1 .5 1 .5 5 .2 5 .2 hierarchy are considered to have occurred quently, DFDS holding of these non-listed at the date of the event or change in cir- shares were measured at fair value based Derivatives evel 2 1 5. 1 5. 0 .5 0 .5 cumstances that caused the transfer. on the published price per share according to the transaction in September 2016 as There were no transfers between the levels this price was also offered to the remaining in the fair value hierarchy in 2016. shareholders. n November 2016 DFDS sold its shareholding in Danish Ship Finance, re- sulting in a gain of D 25.2m. Financial assets available for sale also com- alance at 1 anuary 0.0 0.0 Transfer to level . 0.0 prise other shares and equity investments DFDS usage of derivatives includes interest as well as other investments of D .5m Sale - .1 0.0 ealised gain recognised in the income statement under Financial income 25.2 0.0 rate swaps, bunker swaps, forward ex- 2015 D 1 . m . These are some minor change contracts and currency swaps. The unlisted enterprises and holdings. They are fair values on interest rate swaps have been measured at cost reduced by write-downs, if calculated by discounting the expected fu- any, and consequently, they are not in- ture interest payments. The discount rate cluded in the fair value hierarchy. for each interest payment is estimated on the basis of a swap interest curve, which is calculated based on a wide spread of mar- Assets held for sale non-recurring fair value ket interest rates. The fair value on forward measurement comprise the former Nor- exchange contracts are based on interest folkline domicile in Scheveningen with a car- curve calculations in DFDS Treasury sys- rying amount of D 1 .5m 2015 D tem. alculations are based on a spread of 1 .5m . DFDS is in advanced discussions market interest rates in the various curren- with a potential buyer. cies. alculation on bunker swaps are based The ro-pax ship ilnius Seaways has been on quoted forward curve from various finan- reclassified to non-current tangible assets. cial institutions. eference is made to note 5.
DFDS 2016
As a result of DFDS A/S issuance of corpo- in subsidiaries of D 126.6m made in pre- rate bonds on Oslo Stock xchange there is vious years, but where value in use has in- a requirement to provide certain supple- creased and thus require the impairments to mentary financial information on the parent be reversed in full or partially. Furthermore, company. The following financial infor- included in Finanicial items, net is impair- evenue ,0 .1 6, 12. mation has been prepared using the same ments of investments in subsidiaries of D Operating profit before depreciation TDA and special items 1, .6 1,055. accounting policies as for the annual report 6. m and write down of receivables from Operating profit T before special items 1, 10.1 6 5. for 2015. owever, DFDS has adopted all subsidiaries by D . m. Special items, net -12. .2 new, amended or revised accounting stand- Operating profit T 1,2 .2 6 . ards and interpretations F Ss endorsed esult before tax increased from D Financial items, net 2 . -1 0.5 by the effective for the accounting pe- 51 . m in 2015 to D 1,5 1.1m in 2016, Profit before tax 1,5 1.1 51 . riod beginning on 1 anuary 2016. These equivalent to an increase of 1 .2 . Profit for the period 1,5 1. 506.2 F Ss have not had any material impact on the DFDS A/S interim report. The parent company’s net interest bearing debt increased from D , 0 .2m at 1 Non-current intangible assets 51. 2 .6 As of 1 November 2015 New hannel December 2015 to D , 66.1m at 1 De- Non-current tangible assets 5,2 0. ,2 0. olding A/S formerly a 100 subsidiary of cember 2016 primarily following the fi- nvestments in affiliated companies, associates and oint ventures , 2.5 , 5 .5 DFDS A/S and its 100 owned subsidiary nance lease of two hannel ferries. Other non-current assets .0 1 . New hannel ompany A/S were both Non-current assets ,55 .2 , 62.1 merged into DFDS A/S. 2016 comprise full- urrent receivables from affiliated companies 615.0 2 . year impact of the said mergers, which ex- eceivables from associates and oint ventures . 5 . plains most of the developments from 2015 Other current assets 1, 6. 2,120.2 to 2016. urrent assets 2,1 1.1 2, .
The parent company’s revenue increased by hereof cash and securities 612.6 1,2 . D 2, 2 . m, equivalent to .6 . Operat- ing profit before depreciation and special items TDA increased from D quity , 50. , 22.2 1,055. m to D 1, .6m, equivalent to Non-current liabilities 2, 0 .0 2,21 . an increase of .2 . oth increases are pri- marily due to the above mergers and gen- urrent liabilities to affiliated companies 2,555. 2, 1 . eral improvement on most of the company s Other current liabilities 2,0 0.2 2,002.1 urrent liabilities ,6 6.0 , 21.0 shipping routes.
ncluded in Financial items, net is dividend quity ratio, 0.6 . received from subsidiaries of D 1 .2m Net interest bearing debt , 66.1 , 0 .2 and reversal of impairments of investments
ro it be ore depreciation and impairment on non current assets ro it a ter depreciation and impairment on non current intangib e and tangib e assets Operating profit (EBIT) before special items × 100 Revenue
perating pro it T minus payab e ta or the period ad usted or the ta e ect o net inance cost et or ing capita non interest bearing current assets minus non interest bearing current iabi ities p us non current intangib e and tangib e assets minus pension and ubi ee iabi ities and other provisions nterest bearing iabi ities e c uding provision or pensions minus interest bearing assets minus cash and securities ast t e ve months Net operating profit after taxes (NOPAT) × 100 Average invested capital
The average cost o capita in percent or e uity and debt eighted in re ation to the capita structure ash o rom operating activities e c uding net interest received and paid minus cash o rom net investments Profit for the period excluding non-controlling interests × 100 Average equity excluding non-controlling interests
Equity at end of period × 100 Total assets
Profit for the period excluding non-controlling interests × 100 Weighted average number of ordinary shares in circulation Share price at the end of the period × 100 Earnings per share (EPS)
Dividend for the year × 100 Number of shares at the end of the period
umber o shares e treasury shares end o period times share price end o period
oundings may in genera cause variances in sums and percentages in this report