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 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 flos fro operaing aciviies before • Shipping Division financial ies an afer a • ogisics Division ash flos fro invesing aciviies • onallocae ies • Acuisiion of enerprises an aciviies • Eliinaions • her invesens ne peraing profi before epreciaion Free cash flo EBITDA an special ies Key operating and return ratios • Shipping Division Average nuber of eploees • ogisics Division uber of ships • onallocae ies evenue groh rofiloss on isposal of noncurren EBITDAargin asses ne peraing argin peraing profi EBIT before evenue invese capial average ies special ies eurn on invese capial I Special ies ne I before special ies peraing profi EBIT eurn on eui Financial ies ne

rofi before a Key capital and per share ratios rofi for he perio Eui raio rofi for he perio ecluing e ineres bearing ebEBITDA ies nonconrolling ineres Earnings per share ES D

Divien pai per share D Capital uber of shares en of perio Toal asses eighe average nuber of circulaing DFDS AS share of eui shares Eui Share price D e ineres bearing eb are value Invese capial en of perio Invese capial average Definiions 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 -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 AD AD Q 01

The Logistics Division’s Q revenue of unit Secondly, ’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 adusted for the acuisition 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 adusted 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 , as well as savings on both buner 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 EBTDA 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 fullyear, 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 ecluding reve trolled and steel volumes as well as a nega nue from buner surcharges and by tive impact from the depreciation of GBP 01 015 01 when also adusted for currency changes For the fullyear, the Group’s EBITDA in- The Shipping Divisions revenue increased by creased by to D ,5m following to D ,m and by ecluding an increase in the Shipping Divisions D m hae hae revenue from buner surcharges and by EBTDA by to D ,m and an in Shipping Division , ,1 0 10 when also adusted for currency crease in the ogistics Divisions EBTDA by ogistics Division 1,5 1, 5 changes The Logistics Division’s revenue de to D 5m onallocated costs in onallocated items 1 creased by 1 to D ,0m and in creased by to D 10m Eliminations 1 creased by adusted for currency DFDS rop changes Deprecao ad opera pro be

ore specal ems A F F DA DA SA S pera pro beore deprecao Depreciation in Q increased by 5 to DA ad specal ems D m The increase was primarily re D m hae hae The Group’s EBITDA increased by to lated to higher ship depreciations, including Shipping Division 5 5 110 D 51m 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 alais For the fullyear, de onallocated items 5 1 0 1 preciation increased by 1 to D 5m DFDS rop The Shipping Division’s Q EBTDA increased EBTDAmargin, 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 fullyear, the Group’s volume growth that was enabled by the e EBT before special items increased by pansion of ferry capacity in the business to D 1,m

DDS AD AD Q

ASSAS AD S FS DSSAS AD DA or the full-year, the free cash flo esed capal ad as D ,m after investments of Invested capital increased by to D m hae hae 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 na The cash flo from financing activities as due to the addition of to hannel-ferries Profit on disposals - - negative by D m in Q, including a and the eercise of a purchase option for a Depreciation and impairment - - - - distribution to shareholders of D m ship Average invested capital increased by beore specal ems through buybac of shares The net cash to D ,m flo for Q as negative by D m and FAA 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 hae hae compared to for Including spe- Interest, net - - apal srcre cial items, I as compared to oreign echange gainslosses, net - - na - At the end of Q net-interest-bearing debt for ther items na IBD as D ,m up from oal ace e D ,m at year-end The increase as primarily due to the finance lease of ASD DS

to hannel ferries, the eercise of a pur- SADS Facal 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 adustment for a after ta as D ,m folloing 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 ars 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 euity ratio as nancing decreased by D m adusted 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 loer net in- y dend of D per share In addition, the terest cost and net currency adustments Earnings per share EPS for the full-year in- Euity amounted to D ,m at the end Board of Directors plan to distribute a fur- contributed to the loer 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 beore ad aer a as total comprehensive income for is thus epected to amount to around The profit before ta for Q increased by ash lo ad esmes as D ,m hile transactions D m, ecluding dividend for treasury to D m The profit after ta as The free cash flo of Q as ith oners reduced euity by shares D m folloing a positive ta on profit D m after investments of D m D ,m, including dividends of of D m due to adustments to previous that included acuisitions and don pay- D m, buybac of shares of D m In addition, to share buybacs totalling years ments on to ne buildings and an income of D m from the sale of D m are announced today treasury shares related to the eercise of share options

DFDS AD AD

he first ac of D ith co- riari Bene eran and is D m loo etion on Ferar is strctred eected to contine on ee ith as an action rocess offered direct to a eene roth sharehoders Freiht oes are therefore eected to BD efore secia ites - ro or reain on ee ith on ost er diision he second ac of D i start routes in DFDS’ network in 2017. Capacity Shiin Diision - on Ferar to e coeted on has een and i e eanded on seera oistics Diision - st at the atest rotes to accoodate eected roth on-aocated ites - - Dereciation chane - - assener oes ost oent drin he Board of Directors conseent an to Secia ites - - distrite a tota of D n to share- as trae as redced fooin ter- nestents - - hoders in n addition D has rorist attacs and the dereciation of B in aread een distrited in throh the ae of Breit in ne oreoer cdin ner srchares the share ac that as coeted on irant isses in aais iacted trae

Ferar neatie on the Doer Strait he Logistics Division’s EBITDA before se-  aro carrin eient and arehos- Frther inforation on oth acs are Passenger volumes in DFDS’ route network cia ites is eected to e ithin a rane in ain reated to the oistics Dii- aaiae in a searate annonceent re- are in eected to e on ee or of D - D sion D eased toda siht eo athoh a ore faor-  ther inestents incdin deeoent ae enironent for assener trae cod Secia ites of D - are reated to of -sstes D eere in the aard of shares to eoees ricin is eected to reain coetitie in nestents are eected to aont to ner of riss and ncertainties ertain he roean roth otoo is sortie oth freiht and assener arets arond D n in his incdes an to the otoo he ost iortant aon for DFDS’ infrastructure of ferry routes and eected aent of arond D for these are ossie aor chanes in the de- oistics oerations The Group’s revenue is expected to increase the rchase of to hanne-ferries in ne and for ferr shiin and transort and arond ecdin reene fro n- he ferries ere deiered in Ferar oistics serices For DFDS sch deand he crrent oderate econoic roth is er srchares he reene roth is e- on finance eases and ere conse- is to a are etent ined to the ee of expected to continue in DFDS’ key market ected to e arond incdin ner ent caitaised at that tie he e- econoic actiit in riari roe ese- areas in northern roe in aeit at srchares ected rchase i therefore not iact cia northern roe and in articar the different ees DFDS’ financial leverage. fooin its decision to eae the The Group’s EBITDA before special ites is t aso adacent reions as e as to co- he hihest ee of roth is eected for eected to e ithin a rane of he reainin inestents of D etitor actions he otoo can aso e i- D - D the Baltic countries while the UK’s growth is corise acted oitica chanes first and fore- eected to so don t reain ositie ost ithin the as e as chanes in The Shipping Division’s EBITDA before se- in  Docins and shi rades D econoic ariaes esecia the oi rice cia ites is eected to e ithin a rane  eidins D and echane rates onseent the f- of D - D he roth in Scandinaia and the ost i-  ort terinas D tre financia rests a differ sinifi-

ortant continenta econoies for DFDS cant fro eectations

DFDS AD AD 201

In November 2016 DFDS acquired Shetland Transport head- quartered in Lerwick on Shetland, .

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 AD AD 201

S S DS D m Fll year Fll year evenue 2020 20 27 22 1 21 277 21 071 EBITDA before special items 7 0 27 2 1 17 1 10 Share of profitloss of associates and The Shipping Division operates oint ventures 1 0 2 0 0 11 DFDS’ route network organised Profitloss on disposal of noncurrent assets net 0 2 2 0 0 0 1 0 1 Depreciation and impairment 1 21 20 211 2 1 172 17 10 71 in five business units EBIT before special items 17 722 2 11 1 1 2 1 110 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 27 100 1 2 2 1 111  Baltic Sea Invested capital average 7 1 17 202 1 771 71 72 7 77 IC before special items 1. 1.  Channel Lane metres 000 10 0 77 77 72 72 02 11  France editerranean Passengers 000 120 172 270 12 7 1 2 1 1

 Passenger

A A AD S alc Sea and startup costs related to the new route DS Freight volumes in were 1. above ankoPaldiski. 201 and up by 11. adusted for the ad orh Sea dition of a new route between anko Fin hael 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 denBelgium and etherlandsUK corridors the deployment of a third ship between expansion of capacity on Dover from that were both supported by additional ca Sweden and that in also made two to three ferries compared to last year. pacity. Automotive volumes were generally calls between 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 12m driven ankoPaldiski. Total freight volumes on the Dover Strait primarily by the higher volumes. including the tunnel increased by .2 in EBIT increased by to DKK 7m 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..

AD AD

Frace ederraea asseer

AD AD

S DS

D m Fll year Fll year SA

A SA

A

FA DAA

ASS

AAD S

AD AD

SS SS DS D m Fll year Fll year DFDS’ logistics activities   

A A AD S DS ordc oe relad

DFDS AD AD

SS DS

D m Fll year Fll year

ordc evee eoe secial ites veste caital eoe secial ites its os

oe evee eoe secial ites veste caital eoe secial ites its

relad evee eoe secial ites veste caital eoe secial ites its

oallocaed ems evee eoe secial ites

clig voles elate to atootive ogistics cotact clig voles o alage Setla t o ovee e iveste caital i te ate is so as e te e o te eio Fo te ll ea te iveste caital is so as a aveage

DFDS AD AD

AA SA

e oa o Diectos a te ective oa ave eviee a aove te i tei eot o DFDS S o te eio aa – Decee

e itei eot ic as ot ee a dited or reviewed by the Company’s auditor, as ee eae i accoace it S “tei Fiacial eotig” as aote te a aitioal Dais i tei eotig eieets o liste co aies

o oiio te itei eot gives a true and fair view of the DFDS Group’s as- sets liailities a iacial ositio at Decee a o te eslts o te DFDS Group’s operations and cash flow for te eio aa – Decee

Fte i o oiio te aageet e vie gives a te a ai evie o the development in the Group’s operations a iacial attes te eslt o te

DFDS o’s operations o te eio a te iacial ositio as a ole

oeage Fea D S SDAAD esiet AS F

D F DS SAAD ai AS S Det ai S S DS A AS AS SDAS D

DFDS AD AD

DFDS SA

D m oe Fll year Fll year

evenue , , , ,

Costs peratin costs -, -, -, -, Charter hire - - - - mployee costs - - -, -, Costs of sales and administration - - - -

pera pro beore deprecao DA ad specal ems

Share of profitloss of associates and oint ventures - - - - rofitloss on disposal of non-current assets, net Depreciation, ships - - - - Depreciation, other non-current assets - - - - mpairment losses, ships and other non-current assets - - - -

pera pro beore specal ems

Special items, net - - - -

pera pro

Financial income Financial costs - - - -

ro beore a

a on profit - -

ro or he perod

ttributable to uity holders of DFDS S , , on-controllin interests - - - ro or he perod

ars per share asic earnins per share S of D , D Diluted earnins per share S-D of D , D

DFDS AD AD

DFDS S

D m Fll year Fll year

rofit for the period , ,

her comprehese come tems that will not subseuently be reclassified to the ncome statement emeasurement of defined benefit pension obliations - - - a on items that will not be reclassified to the ncome statement - - ems ha ll o be reclassed sbseely o he come saeme tems that are or may subseuently be reclassified to the ncome statement alue adustment of hedin instruments alue adustment for the period - - alue adustment transferred to operatin costs - alue adustment transferred to financial costs - alue adustment transferred to non-current tanible assets - -

Forein echane adustments, subsidiaries - - nrealised value adustment of securities - - ealised value adustment of securities transferred to financial items - - mpairment of securities transferred to financial costs ems ha are or may sbseely be reclassed o he come saeme

oal oher comprehese come aer a oal comprehese come

Arbable o uity holders of DFDS S , , on-controllin interests - - - oal comprehese come

DFDS AD AD

AA S ASSS AD AS

D m oe Fll year Fll year D m Fll year Fll year

Goodwill Share capital , , ther non-current intanible assets eserves - - Software etained earnins , , Development proects in proress roposed dividends ocrre able asses y arbable o ey holders o DFDS AS

and and buildins on-controllin interests erminals y Ships , , uipment, etc nterest bearin liabilities , , ssets under construction and prepayments Deferred ta ocrre able asses ension and ubilee liabilities ther provisions nvestments in associates and oint ventures Derivative financial instruments eceivables ocrre lables Securities Deferred ta nterest bearin liabilities Derivative financial instruments rade payables , , her ocrre asses ayables to associates and oint ventures ther provisions ocrre asses Corporation ta nventories ther payables rade receivables , , Derivative financial instruments eceivables from associates and oint ventures Deferred income ther receivables rre lables repayments iabilities relatin to assets classified as held for sale Derivative financial instruments ables Cash , y ad lables rre asses ssets classified as held for sale oal crre asses

Asses

DFDS AD AD

DFDS SA F AS AA – D

SS y ealao arbable o Share raslao ed o reasry eaed roposed o ey holders coroll D m capal resere esere secres shares ears ddeds o DFDS AS eress oal uity at anuary , - - - , omprehese come or he perod rofit for the period , her comprehese come tems that will not subseuently be reclassified to the income statement emeasurement of defined benefit pension obliations - a on items that will not be reclassified to the ncome statement - ems ha ll o sbseely be reclassed o he come saeme tems that are or may subseuently be reclassified to the ncome statement alue adustment of hedin instruments for the period alue adustment transferred to operatin costs alue adustment transferred to financial costs - alue adustment transferred to non-current tanible assets - Forein echane adustments, subsidiaries - - nrealised value adustment of securities ealised value adustment of securities transferred to the income statement - ems ha are or may sbseely be reclassed o he come saeme oal oher comprehese come aer a oal comprehese come rasacos h oers cuisition, non-controllin interests - roposed dividend, etraordinary - 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 eercise of share options eduction of share capital by cancellation of treasury shares - ther adustments - rasacos h oers y a December

DFDS

uity at anuary , - - - ,

rofit for the period , - tems that will not subseuently be reclassified to the income statement emeasurement of defined benefit pension obliations - a on items that will not be reclassified to the ncome statement tems that are or may subseuently be reclassified to the ncome statement alue adustment of hedin instruments for the period - alue adustment transferred to operatin costs alue adustment transferred to financial costs Forein echane adustments, subsidiaries nrealised value adustment of securities - nrealised impairment of securities transferred to financial costs

cuisition, non-controllin interests - roposed dividend, etraordinary - 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 eercise of share options eduction of share capital by cancellation of treasury shares - ther adustments he maority of amounts included in ther comprehensive income relates to Group companies which are taed under tonnae ta schemes here is no ta on this

DFDS

Cash flow effect from special items related to operatin activities - - - - dustments for non-cash operatin items, etc Chane in worin capital ayment of pension liabilities and other provisions - - - - nterest etc received nterest etc paid - - - - aes paid - - - - nvestments in ships includin docins, rebuildins and ships under construction incl settlement of forward echane contracts - - - - Sale of ships includin net compensation for ship declared total loss nvestments in other non-current tanible assets - - - - Sale of other non-current tanible assets nvestments in non-current intanible assets - - - - cuisition 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 mortae in ships epayment and instalments of loans secured by mortae in ships - - - - epayment of corporate bonds incl settlement of cross currency swap - Chane in other non-current investments, net - Chane in other financial loans, net - - - - ayment of financial lease liabilities - - - - Chane in operatin credits - - - - Chane in loan to associates and oint ventures - - - cuisition of non-controllin interests - - - cuisition of treasury shares - - - - Cash received from eercise of share options Government rants related to purchase of assets Dividends paid - - Cash and cash euivalents at beinnin of period , , Forein echane and value adustments of cash and cash euivalents - -

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 reuirements for in- terim reports of listed companies he in- ternal revenue , , , terim report has been prepared usin the ntraroup revenue same accountin policies as for the annual otal revenue , , , report for DFDS has adopted all new, amended or revised accountin standards and interpretations FSs endorsed by the effective for the accountin period be- innin on anuary hese FSs have not had any material impact on the Groups interim report he detailed accountin policies for will be available in the annual report ternal revenue , , , that is to be released February ntraroup revenue

otal revenue , , ,

FS 4

Ater the acisition the FS rop has ownership o the acired company and the acired company is consolidated n September FS entered into an Adstment o estimated earn-ot to the sellers regarding the acisition o the as rom this date he acisition is agreement with the Estonian company rote apellsr-aldisi acired in the acisition o ayside rop in made by the sbsidiary FS ogistics Navirail OÜ to acquire the company’s freight td and the acired company is ater the 4 and the actiities o eltrin sro in ech Repblic in - - and passenger rote ro-pa between al- acisition inclded in the U Ireland Accral o the total estimated costs estimated air ale related to the FS disi Estonia and ano Finland he siness Unit shares awarded to FS employees as a special one-o award in connection transaction was approed by the Estonian with DFDS’ 150 years anniversary in December 2016. The costs will accrue from ompetition Athorities at September FS paid 4m or the acired ecember to Febrary otal air ale at date o awarding the and the rote is consolidated with e- company and cash in the acired com- shares is estimated at m - ect rom ctober pany amonted to 4m and accord- Impairment o installation on a ship - ingly the liidity eect was 3m he rote has been acired by FS osts related to designing and implementing one grop wide inance serice In addition two earn-ot agreements hae A/S. The route expands DFDS’ network in the been entered into according to which centre inclding adisor costs redndancies 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 perormance or and disi and apellsr Sweden may pay an additional cash con-

sideration in the range o -m in FS has not paid any pront considera- total tion An earn-ot agreement has been en- changes to estimates o contingent considera- tered with the seller according to which ased on the acired company’s esti- Special items inclde signiicant income and e- tions related to bsiness combinations gains and FS mst pay o the rotes accm- mated earnings the earn-ot agreements penses not directly attributable to the Group’s re- losses on the disposal o actiities and signii- lated EI or si years ased on the epec- are estimated to m onseently cring operating actiities sch as material strc- cant gains and losses on the disposal o non-cr- tations to the rotes earnings or the earn- the total prchase price is calclated at tring o processes and signiicant organiational rent assets ot period the net present ale o the 4m he estimated yearly reene restrctringschanges which are o signiicance earn-ot is estimated at 3m he es- is to 4m oer time In addition other non-recrring hese items are classiied separately in the in- timated yearly reene is m ood- amonts are classiied as special items inclding come statement in order to proide a more trans- will amont to 3m ransaction costs were insigniicant and impairment o goodwill signiicant impairments parent iew o income and epenses that are con- hae been epensed as part o administra- o non-crrent tangibles assets signiicant trans- sidered not to hae recrring natre n 4 oember the acisition o tion costs oodwill amont to m action costs and integration costs in connection the Scottish company alage Shetland with large bsiness combinations td was completed and the FS rop obtained control as rom this date

DFDS 2016

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 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, adusted 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 maority 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 15. 15. 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 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 65. 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 FSs endorsed esult before tax increased from D Financial items, net 2. -10.5 by the effective for the accounting pe- 51.m in 2015 to D 1,51.1m in 2016, Profit before tax 1,51.1 51. riod beginning on 1 anuary 2016. These equivalent to an increase of 1.2. Profit for the period 1,51. 506.2 FSs 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 5,20. ,20. 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 2,11.1 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 companys Other current liabilities 2,00.2 2,002.1 urrent liabilities ,66.0 ,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

roit beore depreciation and impairment on noncurrent assets roit ater depreciation and impairment on noncurrent intangibe and tangibe assets Operating profit (EBIT) before special items × 100 Revenue

perating proit T minus payabe ta or the period adusted or the ta eect o net inance cost et oring capita noninterest bearing current assets minus noninterest bearing current iabiities pus noncurrent intangibe and tangibe assets minus pension and ubiee iabiities and other provisions nterestbearing iabiities ecuding provision or pensions minus interestbearing assets minus cash and securities ast teve months Net operating profit after taxes (NOPAT) × 100 Average invested capital

The average cost o capita in percent or euity and debt eighted in reation to the capita structure ash o rom operating activities ecuding 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