DFDS Annual Report 2005 Annual Report 2005 1 Route map and activities 3 DFDS 2005 4 Key Figures, DFDS Group 5 Foreword 6 Vision, Strategy and Goals 8 Management Report 12 The World Outside DFDS 14 DFDS Tor Line’s Report 18 New opportunities – DFDS Tor Line 20 DFDS Seaways’ Report 24 New opportunities – DFDS Seaways 26 Risk Factors and the Environment 28 Shareholder Information 30 Financial Review 33 Annual Report 2005 34 Index 35 Income Statement 36 Balance Sheet 38 Statement of Changes in Equity 41 Cash Flow Statement 42 Transition to IFRS 44 Accounting Policies 49 Notes 78 DFDS Group Companies 79 Statements 80 Fleet List 82 Commercial Duties 84 Corporate Governance in DFDS 86 Definitions and Glossary 87 About DFDS’ History DFDS IN BRIEF DFDS is a leading North European liner shipping company based in Copenhagen. The DFDS route network includes freight routes and combined freight and passenger routes. The Group also operates its own sales compa- nies and port terminals for handling freight and passengers. Freight activities are operated by DFDS Tor Line. The main customer groups consist of internatio- nal transport and shipping companies and large- scale industrial manufacturers whose logistics include a significant element of transport by sea. Passenger activities are operated by DFDS Sea- ways. The main customer groups consist of Mini Cruise passengers, holidaymakers travelling by car, group travel and transport and conference passengers. DFDS Seaways also offers freight services. DFDS employs approximately 4,200 people and operates a fleet of approximately 65 ships. DFDS was founded in 1866 and is listed on the Copenhagen Stock Exchange. This Annual Report has been translated into DFDS A/S · SUNDKROGSGADE 11 · DK-2100 COPENHAGEN Ø English from the Danish version. In case of TEL.: +45 33 42 33 42 · FAX. +45 33 42 33 41 · WWW.DFDS.COM discrepancies, the Danish version shall prevail. ADDRESSES OF DFDS’ SUBSIDIARIES, LOCATIONS AND OFFICES ARE AVAILABLE FROM DFDS WEBSITES DFDS Annual Report 2005 Annual Report 2005 1 Route map and activities 3 DFDS 2005 4 Key Figures, DFDS Group 5 Foreword 6 Vision, Strategy and Goals 8 Management Report 12 The World Outside DFDS 14 DFDS Tor Line’s Report 18 New opportunities – DFDS Tor Line 20 DFDS Seaways’ Report 24 New opportunities – DFDS Seaways 26 Risk Factors and the Environment 28 Shareholder Information 30 Financial Review 33 Annual Report 2005 34 Index 35 Income Statement 36 Balance Sheet 38 Statement of Changes in Equity 41 Cash Flow Statement 42 Transition to IFRS 44 Accounting Policies 49 Notes 78 DFDS Group Companies 79 Statements 80 Fleet List 82 Commercial Duties 84 Corporate Governance in DFDS 86 Definitions and Glossary 87 About DFDS’ History DFDS IN BRIEF DFDS is a leading North European liner shipping company based in Copenhagen. The DFDS route network includes freight routes and combined freight and passenger routes. The Group also operates its own sales compa- nies and port terminals for handling freight and passengers. Freight activities are operated by DFDS Tor Line. The main customer groups consist of internatio- nal transport and shipping companies and large- scale industrial manufacturers whose logistics include a significant element of transport by sea. Passenger activities are operated by DFDS Sea- ways. The main customer groups consist of Mini Cruise passengers, holidaymakers travelling by car, group travel and transport and conference passengers. DFDS Seaways also offers freight services. DFDS employs approximately 4,200 people and operates a fleet of approximately 65 ships. DFDS was founded in 1866 and is listed on the Copenhagen Stock Exchange. This Annual Report has been translated into DFDS A/S · SUNDKROGSGADE 11 · DK-2100 COPENHAGEN Ø English from the Danish version. In case of TEL.: +45 33 42 33 42 · FAX. +45 33 42 33 41 · WWW.DFDS.COM discrepancies, the Danish version shall prevail. ADDRESSES OF DFDS’ SUBSIDIARIES, LOCATIONS AND OFFICES ARE AVAILABLE FROM DFDS WEBSITES DFDS TOR LINE – NORTH SEA DFDS SEAWAYS Oslo Brevik Kristiansand ABOUT DFDS’ HISTORY Kristiansand DFDS was founded in 1866 on the initiative of C.F.Tietgen through a merger of the three largest Danish steamship companies of the day. Gothenburg From its inception, DFDS was involved in both domestic and international trade. The starting point for the international services were the North Sea and the Baltic Gothenburg Sea, expanding later to the Mediterranean. At the beginning of the 20th century, routes were also established to the USA and South America. Helsingborg Land-based transport and logistics also became a part of DFDS’ business activi- ties as freight transport on land started to grow, and in the 1960s, the door-to- Copenhagen Esbjerg Newcastle door concept for freight was developed. Esbjerg Killingholme Cuxhaven A passenger route between New York and Miami, based on a cruise ferry con- Immingham cept, started in 1982 but did not live up to expectations and was closed in 1983. DFDS was subsequently restructured, and the activities in the Mediterranean and DFDS TOR LINE – NORTH SEA DFDS SEAWAYS the routes to the USA and South America were sold. Routes: Routes: Harwich Rotterdam AngloBridge (Gothenburg-Immingham/Tilbury) Copenhagen/Helsingborg-Oslo Since then, DFDS’ geographical focus has been Northern Europe. Tilbury (Maasvlakte) EuroBridge (Gothenburg-Brevik-Ghent) Amsterdam-Newcastle Amsterdam (IJmuiden) Zeebrugge NorBridge (Brevik-Kristiansand-Immingham) Gothenburg-Kristiansand-Newcastle Harwich BritanniaBridge (Esbjerg-Immingham/Harwich) Esbjerg-Harwich Land-based freight transport and logistics were developed on the basis of organic Ghent ElbeBridge (Cuxhaven-Immingham) growth and acquisition of several large companies. By the late 1990s, DFDS Dan ShortBridge (Rotterdam-Immingham) Port terminals: Transport had become one of the largest transport companies in Northern Europe. BelgoBridge (Zeebrugge-Killingholme) DFDS Terminalen, Copenhagen Port terminals: Canal tour operator, Copenhagen: Passenger and freight shipping also developed through organic growth and DFDS Scandic Terminal, Esbjerg DFDS Canal Tours acquisitions, including the Swedish passenger and freight shipping company Tor DFDS Tor Terminal, Maasvlakte (Rotterdam) Line in the early 1980s, the Norwegian freight shipping company North Sea Line DFDS Nordic Terminal, Immingham in the late 1990s and the Lithuanian passenger and freight shipping company North Shields, Newcastle DFDS TOR LINE – BALTIC SEA Northsea Terminal, Brevik LISCO in 2001. The market position in Norway was enhanced by the acquisition KST Terminal, Kristiansand Routes: of DFDS Lys-Line Rederi and Lys-Line in respectively 2001 and 2003. Skogn Terminal, Skogn (Trondheim) BalticBridge (Fredericia-Copenhagen-Klaipeda) DFDS LYS-LINE Skogn OCT, Oslo HansaBridge (Lübeck-Riga/Ventspils) DFDS TOR LINE – BALTIC SEA NevaBridge (Kiel-St. Petersburg) DFDS Dan Transport was sold in 2000 to concentrate DFDS’ resources on DFDS LISCO Line (Klaipeda-Kiel) shipping. In January 2001, a new focused shipping strategy was developed, DFDS LYS-LINE ScanBridge (Baltijsk-Klaipeda-Karlshamn) which now serves as the basis for the future development of DFDS. Klaipeda-Sassnitz Route areas: Norway-England/Continent Tramp activities Norway-Ireland Norway-Continent Oslo Norway-Spain St. Petersburg Moss Tramp activities Larvik Frederikstad Brevik Halden DFDS Tor Line port terminals Kristiansand Lysekil DFDS Seaways port terminals Riga Ventspils Belfast Karlshamn Drogheda Esbjerg Klaipeda Copenhagen Cork Fredericia Immingham Hamburg Baltijsk Sassnitz (Mukran) Kiel EDITING DFDS A/S Rotterdam (Maasvlakte) Lübeck DESIGN AND PRODUCTION KPTO AS PHOTO MOGENS CARREBYE, DENNIZ CORSMAN AND OTHERS Tilbury PRINTING SCANPRINT A/S Ghent Spain Mediterranean DFDS TOR LINE – NORTH SEA DFDS SEAWAYS Oslo Brevik Kristiansand ABOUT DFDS’ HISTORY Kristiansand DFDS was founded in 1866 on the initiative of C.F.Tietgen through a merger of the three largest Danish steamship companies of the day. Gothenburg From its inception, DFDS was involved in both domestic and international trade. The starting point for the international services were the North Sea and the Baltic Gothenburg Sea, expanding later to the Mediterranean. At the beginning of the 20th century, routes were also established to the USA and South America. Helsingborg Land-based transport and logistics also became a part of DFDS’ business activi- ties as freight transport on land started to grow, and in the 1960s, the door-to- Copenhagen Esbjerg Newcastle door concept for freight was developed. Esbjerg Killingholme Cuxhaven A passenger route between New York and Miami, based on a cruise ferry con- Immingham cept, started in 1982 but did not live up to expectations and was closed in 1983. DFDS was subsequently restructured, and the activities in the Mediterranean and DFDS TOR LINE – NORTH SEA DFDS SEAWAYS the routes to the USA and South America were sold. Routes: Routes: Harwich Rotterdam AngloBridge (Gothenburg-Immingham/Tilbury) Copenhagen/Helsingborg-Oslo Since then, DFDS’ geographical focus has been Northern Europe. Tilbury (Maasvlakte) EuroBridge (Gothenburg-Brevik-Ghent) Amsterdam-Newcastle Amsterdam (IJmuiden) Zeebrugge NorBridge (Brevik-Kristiansand-Immingham) Gothenburg-Kristiansand-Newcastle Harwich BritanniaBridge (Esbjerg-Immingham/Harwich) Esbjerg-Harwich Land-based freight transport and logistics were developed on the basis of organic Ghent ElbeBridge (Cuxhaven-Immingham) growth and acquisition of several large companies. By the late 1990s,