DFDS — Interim / Quarterly Report 2008

Aug 26, 2008

Interim report for H1 2008

Company announcement no. 21/2008 Copenhagen, 26 August 2008

Difficult market conditions and high oil prices impacted performance in H1

Significant events, H1:

• Revenue increased by 4% to DKK 4.2 billion
• Operating profit before depreciation (EBITDA) was reduced by 28% to DKK 434 million
• Pre-tax profit was reduced by 62% to DKK 68 million
• The Tramp business area was sold at a profit of DKK 22 million
• The improvement plan for Passenger Shipping resulted in restructuring costs amounting to DKK 28 million in the second quarter
• Stable freight market in the North Sea while volumes declined on east to west traffic in the Baltic Sea
• Bunker and haulage costs increased due to higher oil prices
• As announced earlier in august the full-year profit expectation was changed to a pre-tax profit at a level of DKK 325-375 million. The profit expectation is still subject to greater uncertainty than usual

Contacts: Niels Smedegaard, CEO, +45 33 42 34 00 Christian Merrild, CFO, +45 33 42 32 01

Søren Brøndholt Nielsen, IR, +45 33 42 33 59

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

DFDS – a leading sea-based transport network in northern Europe. DFDS has around 4,400 employees and employs a fleet of around 60 ships. DFDS was founded in 1866 and is listed on OMX, the Nordic Stock Exchange Copenhagen.

Key Figures DFDS Group

	2008	2007	2008	2007	2007
DKK mill.	Q2	Q2	H1	H1	Full year
Income statement
Revenue 1)	2,209	2,104	4,153	3,984	8,310
Ro-Ro Shipping	997	904	1,923	1,779	3,680
Container Shipping	441	394	871	806	1,642
Passenger Shipping	503	517	823	850	1,932
Terminal Services	169	174	337	351	703
Trailer Services	262	250	520	500	986
Operating profit before depreciation (EBITDA) 1)	294	396	434	600	1,316
Ro-Ro Shipping	211	243	394	454	896
Container Shipping	29	40	58	78	151
Passenger Shipping	55	99	-33	50	249
Terminal Services	1	3	4	5	15
Trailer Services	10	18	25	32	57
Profit on disposal of ships, buildings, and terminals	30	0	30	-2	33
Operating profit (EBIT)	180	251	177	297	752
Financing, net	-54	-57	-108	-116	-226
Profit before tax	126	194	68	181	526
Profit for the period	125	177	60	159	412
Profit for the period after minority interests	122	174	55	154	400
Profit for analytical purposes	121	183	57	160	485
Capital
Total assets	-	-	9,478	9,879	9,610
DFDS A/S' share of the equity	-	-	3,517	3,315	3,538
Total equity	-	-	3,614	3,426	3,653
Net interest bearing debt	-	-	3,683	4,290	3,845
Invested capital, average	7,777	8,140	7,816	8,193	8,113
Average number of employees	-	-	4,428	4,379	4,427
Cash flow
Cash flow from operating activities before finance and after tax	320	399	437	625	1,264
Cash flow from investments	89	-101	-104	-147	-151
Acquisition of companies, activities and minority interests	-27	-1	-30	-12	-35
Other investments	116	-100	-74	-135	-116
Free cash flow	409	298	333	478	1,113
Operations and return
Number of operating ships	-	-	59	65	64
Revenue growth, %	5.0	13.2	4.3	15.5	10.5
EBITDA-margin, %	13.3	18.8	10.5	15.1	15.8
Operating margin, %	8.1	11.9	4.3	7.4	9.1
Invested capital turnover rate, times	1.14	1.03	1.06	0.97	1.02
Return on invested capital (ROIC) p.a., %	8.3	10.9	4.0	6.5	8.6
Return on equity p.a., %	13.8	25.1	6.5	19.8	14.5
Capital and per share
Equity ratio, %	-	-	38.1	34.7	38.0
Financial gearing, times	-	-	1.05	1.29	1.09
Earnings per share (EPS), DKK	15.81	22.76	7.19	20.17	52.40
Dividend per share, DKK	-	-	-	-	15.0
Number of shares at the end of the period, '000	-	-	8,000	8,000	8,000
Share price at the end of the period, DKK	-	-	680	710	790
Market value, DKK mill.	-	-	5,440	5,680	6,320

1) The figures per business area do not sum to the Group figures as, among other things, eliminations and non-allocated items are not included.

Definitions on page 18.

Market trends

As a whole, market growth in the northern European transport sector eased off during the second quarter although both segments and market areas with continued growth and areas with stagnant or decreasing volume are represented.

The general trend of declining market growth is expected to continue during the second six months of 2008.

The increase in oil prices during the first half year resulted in a significant increase in costs for the transport sector. In some segments and market areas this increase can be charged forward to customers whereas competitive conditions in other areas only enable partial coverage of the increase.

The low level of market growth also causes excess capacity in certain segments and market areas and this, of course, increases competitive pressure. However, in general, the price level was relatively stable during the first six months.

In addition to this, the effects of the depreciation of the British pound affected traffic around the UK.

Activities adjusted to market conditions

To counteract the change in market conditions several activities have already been adjusted and, during the second half-year, further adjustments will be implemented. Adjustments include:

• Tonnage:
• o Return of a ro-pax ship and a container ship
• o Chartering out of two ro-ro ships
• o Lay-up of one passenger ship
• Capacity reductions:
• o One ship to be taken out of service on the ro-pax route between Germany and Latvia
• o Ro-ro route between Sweden and Belgium will be reduced from four to three ships
• o Lo-lo routes between Ireland and Holland will be reduced from five to four ships
• Cost reductions:
• o Renegotiations of rate agreements for certain activities
• o Implementation of phase two of the improvement plan for DFDS Seaways relating to productivity on board

• o Improvement plan initiated on DFDS Nordic Terminal, Immingham

• o Extension of sailing times on several routes

• Sales activities:
• o Price adjustments
• o Additional sales via sales organisation (Freight Sales Solutions) aimed at industrial customers

The above initiatives have been included in the profit forecast and are expected to be implemented during the second half-year. In addition, other initiatives are being assessed.

More freight capacity in the North Sea

Three ro-ro ships will be extended in 2009 to ensure sufficient freight capacity on the market between Sweden and England in the coming years. At the same time, environmental impact and cost per unit will also be reduced as bunker consumption per ship will remain unchanged relative to today.

The extension will result in an increase in capacity of 25% per ship. Total investment amounts to DKK 280 million of which DKK 170 million will be incurred in 2008 and the remainder in 2009.

Sale of the Tramp business area

As a consequence of DFDS' network strategy, an agreement was entered into concerning the sale of the Tramp business area, consisting of four tramp ships, at the beginning of May 2008.

The sale of the business area resulted in a profit of DKK 22 million and increased free cash flow by DKK 156 million.

H1 accounts and expectations

Revenue

Group revenue for H1 2008 rose to DKK 4,153 million, an increase of 4% compared to the same period last year.

Revenue

DKK mill.	H107	H108	Change, %
Ro-Ro Shipping	1,779	1,923	8
Container Shipping	806	871	8
Passenger Shipping	850	823	-3
Terminal Services	351	337	-4
Trailer Services	500	520	4
Tramp	56	37	-34
Eliminations etc.	-358	-358	n.a.
DFDS Group	3,984	4,153	4

The majority of the increase in the Group's revenue is attributable to oil price surcharges on Ro-Ro Shipping and Container Shipping and increased activity in the latter business area.

Adjusted for the income from the charter of a passenger ship in 2007, Passenger Shipping's revenue for H1 2008 equalled the revenue for the same period last year.

Operating profit before depreciation (EBITDA)

Group EBITDA for H1 2008 was DKK 434 million, a decrease of 28%, due to a reduction in the EBITDA margin of 4.6 percentage points to 10.5% compared with the same period last year.

The reduction in the margin is partly due to an increase in the level of bunker and haulage costs and partly due to a lower capacity utilisation rate resulting from the decline in market growth.

In all business areas, performance is composed of areas of stable development and areas with a significant decrease in profit due to changes in market conditions.

The performance of each individual business area is described in more detail on page 6- 10. However, it should be noted that Passenger Shipping's EBITDA cannot be directly compared with the same period last year due to special items. These items, which amount to a total of DKK 64 million, are described in detail on page 8.

Operating profit before depreciation (EBITDA)

DKK mill.	H107	H108	Change, %
Ro-Ro Shipping	454	394	-13
Container Shipping	78	58	-26
Passenger Shipping	50	-33	-166
Terminal Shipping	5	4	-20
Trailer Shipping	32	25	-22
Tramp Shipping	1	11	1,000
Non-allocated items	-20	-25	n.a.
DFDS Group	600	434	-28

DFDS Group - EBITDA per quarter DKK mill.

Profits, depreciation and EBIT

Depreciation for H1 2008 was reduced by DKK 11 million to DKK 290 million. Around half of this reduction is due to the end of depreciation on tramp

ships in connection with the decision to sell Tramp. In addition to this, there were several small reductions in the other business areas.

Profits on disposals and depreciation, Group

DKK mill.	H107	H108	Change, %
EBITDA	600	434	-28
Associated companies	0	-1	n.a.
Profit on disposals	-2	30	n.a.
Depreciation	-301	-290	-4
Goodwill/neg. goodwill	0	4	n.a.
EBIT	297	177	-40

EBIT was subsequently DKK 177 million, corresponding to a decrease of 40%.

Net financing

The net cost of financing for H1 2008 was reduced by 7% to DKK 108 million. Net interest cost declined due to the lower level of net interestbearing debt, partially offset by a higher interest rate level.

Finance, net, Group

DKK mill.	H107	H108	Change, %
Interest, net	-107	-101	-6
Financial gains/losses	-1	-1	0
Other items	-8	-6	-25
Total	-116	-108	-7

Pre-tax profit

Subsequently, pre-tax profit for H1 2008 was DKK 68 million, corresponding to a decrease of 62% compared to the same period last year.

Balance sheet and investments

Total assets at the end of H1 amounted to DKK 9.48 billion, 4% less than the same period last year and 1% less than at the end of 2007.

The decrease in total assets compared to the same period last year is primarily due to the sale of a passenger ship in the second half of 2007 and the sale of tramp ships in the second quarter of 2008. In addition, H1's depreciation exceeds investments for the period.

Invested capital and ROIC

The average invested capital in H1 2008 amounted to DKK 7.82 billion, a reduction of 5% compared to the same period last year.

The return on invested capital in the period was 4.0% p.a., 2.5 percentage points below the same period in 2007.

Profit forecast for 2008

As stated in DFDS' annual report and interim report for the first quarter, the previous profit forecasts were subject to greater uncertainty than usual. Due to the prospect of a longer lasting weakening of the economy, including increasingly difficult market conditions in the second half of

2008, a rise in bunker costs and restructurering costs, the Group profit forecast for 2008 was changed on 14 August as follows:

• Revenue growth is expected to be approximately 2%. Growth was previously expected to be 3-5%
• Operating profit before depreciation (EBITDA) is expected to be 15-20% lower than in 2007. A rise of 0-2% was previously forecast

• Pre-tax profit is adjusted downwards from approximately DKK 500 million to DKK 325- 375 million

Total net investments for the year are expected to be approximately DKK 400 million, which is DKK 200 million more than previously announced, primarily due to the extension of the ro-ro tonnage for the North Sea.

The profit forecast is still subject to greater uncertainty than usual due to uncertainty about especially developments in market growth and oil prices.

Ro-Ro Shipping

Ro-Ro Shipping operates route networks based on ro-ro and ro-pax tonnage in the North Sea and the Baltic Sea. The most important customer groups are haulage and forwarding companies, as well as producers of heavy industrial goods.

			2007			2008		2008	2007
DKK mill.	Q1	Q2	Q3	Q4	Full year	Q1	Q2	H1	H1
Ro-Ro Shipping
Revenue	875	904	951	950	3,680	926	997	1,923	1,779
Operating profit before depreciation (EBITDA)	211	243	244	198	896	183	211	394	454
Sale of assets	-2	0	0	0	-2	0	7	7	-2
Depreciation	-63	-63	-65	-65	-256	-62	-61	-123	-126
Operating profit (EBIT)	146	180	179	133	638	121	157	278	326
Operating profit margin (EBIT), %	16.7	19.9	18.8	14.0	17.3	13.1	15.7	14.5	18.3
Invested capital, average	4,533	4,475	4,444	4,408	4,464	4,435	4,486	4,446	4,501
Return on invested capital (ROIC) p.a., %	12.9	14.2	15.3	11.2	13.3	10.9	12.3	11.0	13.0
Lanemetres, '000	2,666	2,690	2,624	2,638	10,618	2,605	2,665	5,270	5,356
Passengers (Baltic Sea), '000	39	57	76	48	220	45	58	103	96

Market trends

There continued to be a relatively stable development in the Scandinavian economies during the first half of 2008 and this contributed to maintaining a stable but stagnating freight market in the North Sea during H1 2008.

In the Baltic Sea region an economic slowdown resulted in reduced market growth for maritime transport. Moreover, the weakening of the USD has reduced traffic flows between Russia and EU. The present political tension between Russia and the EU is also having a negative impact on the market.

Operational developments

The number of transported lanemetres was 2% down in the first half-year compared to the same period last year. As a whole, the level of activity in the North Sea was almost on a par with the same period last year whereas the level of activity on several of the routes from east to west in the Baltic Sea was reduced due to an increase in competition from the landbased transport sector.

Total freight capacity was 7% higher in the first six months, mainly due to the deployment of more tonnage on the route between Denmark and Lithuania (BalticBridge) and the deployment of an extra ship on the route between Germany and Latvia (HansaBridge). There were only small changes to the capacity on the other routes.

Earnings performance

Revenue rose by 8% to DKK 1,923 million, primarily due to an increase in oil price surcharges. On the whole, the decline in the number of transported lanemetres was offset by a corresponding rise in the price level.

Operating profit before depreciation (EBITDA) was reduced by 13% to DKK 394 million. The increase in bunker costs was mainly offset by oil price surcharges and, thus, the fall in profits relates primarily to increases in capacity on routes where expected increases in volume did not materialise. Furthermore, the deterioration of the competitive situation for east-west routes in the Baltic Sea resulted in a significant decrease in profits.

The return on invested capital for H1 2008 was 11% p.a.

Container Shipping

Container Shipping comprises route networks based on lo-lo tonnage in the North Sea, the Irish Sea and the north of Spain. The most important customer groups are import and export companies, as well as producers of heavy industrial goods.

			2007			2008		2008	2007
DKK mill.	Q1	Q2	Q3	Q4	Full year	Q1	Q2	H1	H1
Container Shipping
Revenue	412	394	420	416	1,642	430	441	871	806
Operating profit before depreciation (EBITDA)	38	40	40	33	151	29	29	58	78
Sale of assets	0	0	0	0	0	0	0	0	0
Depreciation	-20	-21	-18	-22	-81	-21	-21	-42	-41
Operating profit (EBIT)	18	19	22	11	70	8	6	14	37
Operating profit margin (EBIT), %	4.4	4.8	5.2	2.6	4.3	1.9	1.4	1.6	4.6
Invested capital, average	955	950	965	970	960	935	916	930	953
Return on invested capital (ROIC) p.a., %	6.8	7.0	7.6	4.0	6.3	2.9	2.9	2.7	6.6
Tons, '000	543	517	527	513	2,100	608	606	1,214	1,060
Containers, '000	29	31	29	28	117	25	29	54	60

Market trends

The current slowdown in economic development has particularly affected the Irish and English markets, which are important to Container Shipping, where low market growth has contributed to the creation of excess capacity and pressure on the price level.

In addition, rising fuel prices have increased the cost level for haulage included in door-door solutions.

Operational developments

With regard to operations originating in Norway (DFDS Lys Line), industrial logistics showed an increase in profits whereas there was a deterioration of market conditions for door-door operations in the North Sea due to low market growth and increased competition.

The volume between Ireland and the Continent remained at approximately the same level as the same period last year, but a significant increase in haulage costs and a decline in the price level due to excess capacity resulted in a considerable decline in profits from operations.

Earnings performance

Revenue for the first half-year rose by 8% to DKK 871 million. Around 40% of this increase is attributable to oil price surcharges and the remainder to increased activity in industrial logistics and chartering.

Operating profit before depreciation (EBITDA) for the first half-year decreased by 26% to DKK 58 million. The majority of the decrease is attributable to activities between Ireland and the Continent.

The return on invested capital for H1 2008 was 3% p.a.

Passenger Shipping

Passenger Shipping operates a network of passenger routes based on cruise-ferry tonnage in the North Sea and Kattegat / Skagerrak. The most important customer groups are passengers with their own vehicles, Mini Cruises, conferences and tour operators. In addition, DFDS Canal Tours operates tours around the canals of Copenhagen.

			2007			2008		2008	2007
DKK mill.	Q1	Q2	Q3	Q4	Full year	Q1	Q2	H1	H1
Passenger Shipping
Revenue	333	517	650	432	1,932	320	503	823	850
Operating profit before depreciation (EBITDA)	-49	99	191	8	249	-88	55	-33	50
Sale of assets	0	0	0	35	35	0	1	1	0
Depreciation	-53	-42	-50	-38	-183	-47	-46	-93	-95
Operating profit (EBIT)	-102	57	141	5	101	-135	10	-125	-45
Operating profit margin (EBIT), %	-30.6	11.0	21.7	1.2	5.2	-42.2	2.0	-15.2	-5.3
Invested capital, average	2,038	1,967	1,958	1,921	1,973	1,840	1,767	1,802	2,008
Return on invested capital (ROIC) p.a., %	-20.1	10.2	27.5	0.9	4.7	-29.3	2.0	-12.4	-4.0
Passengers, '000	271	402	494	332	1,499	271	391	662	673

Market trends

The slowdown in economic development gives rise to lower market growth and, thus, increased pressure on market conditions for passenger shipping due to excess capacity, price competition and increasingly late bookings. It also makes it more difficult to cover increasing bunker costs.

Operational developments

Passenger numbers in H1 2008 were 2% lower than the same period last year. There were 3% fewer passengers on the Oslo route but, in spite of intense competition on the Norwegian market, total revenue per passenger remained at the same level as for H1 2007.

On the Amsterdam route the number of passengers remained at the same level as for H1 2007 even though the number of departures was reduced by 3%. However, the route's market position was impaired by the depreciation of the British pound and earnings did not meet the expectations associated with the capacity increases implemented in 2007. In addition, there was a significant increase in the route's net bunker costs.

As previously announced, the Bergen route will be closed down at the beginning of September 2008 due to an unsatisfactory level of earnings. The route achieved a profit increase in the first half-year; however, the increase was lower than expected and still unsatisfactory.

Improvement plan

As announced in May 2008, targeted efforts were initiated to improve earnings in the business area. These included the closure of the Bergen route. In addition to this, a new, focused organisational

structure was introduced in May with 70 fewer shore-based employees.

The above-mentioned changes resulted in restructuring costs amounting to DKK 28 million, which were recognised in the second quarter. The next phase of the plan is focused on improving productivity on board and this work was begun in June.

Earnings performance

Revenue for the first half-year amounted to DKK 823 million. This was on a par with the same period last year adjusted for a ship charter that ended in December 2007. There was a small decline in ticket income per passenger whereas revenue on board remained at the same level as for H1 2007.

Operating profit before depreciation (EBITDA) amounted to DKK -33 million, which was DKK 83 million less than H1 2007. However, EBITDA for the half-year is not directly comparable due to the following items:

• restructuring costs of DKK 28 million
• income of DKK 16 million from a ship charter in H1 2007
• a change in accrual of expenses due resulted in a net additional cost of DKK 20 million which will be adjusted in the second half-year

Thus, these items reduced the EBITDA for the half-year by a total of DKK 64 million compared with H1 2007. Of the remaining profit decline of DKK 19 million, DKK 25 million can be attributed to a net increase in bunker cost.

As was the case for the previous halfyear, the return on invested capital for H1 2008 was negative due to seasonal fluctuations.

Terminal Services

Terminal Services operates port terminals in Denmark, Great Britain, the Netherlands and Norway, where unit loads such as trailers, containers, automobiles and industrial goods are processed. Passengers are also processed in some terminals.

			2007			2008		2008	2007
DKK mill.	Q1	Q2	Q3	Q4	Full year	Q1	Q2	H1	H1
Terminal Services
Revenue	177	174	173	179	703	168	169	337	351
Operating profit before depreciation (EBITDA)	2	3	2	8	15	3	1	4	5
Sale of assets	0	0	0	0	0	0	0	0	0
Depreciation	-7	-7	-6	-7	-27	-6	-6	-12	-14
Operating profit (EBIT)	-5	-4	-4	1	-12	-3	-5	-8	-9
Operating profit margin (EBIT), %	-2.8	-2.3	-2.3	0.6	-1.7	-1.8	-3.0	-2.4	-2.6
Invested capital, average	466	493	485	440	466	419	408	415	484
Return on invested capital (ROIC) p.a., %	-3.7	-2.5	-2.8	1.1	-2.0	-2.7	-4.3	-3.3	-2.9
Tons, '000	4,460	4,484	4,489	4,446	17,879	4,543	4,200	8,743	8,944

Market trends

Due to a high proportion of internal revenue from Ro-Ro Shipping in particular, but also from Container Shipping, market trends are closely linked to these areas. In general, the market for third party goods, including steel products, was positive.

Operational developments

There was an increase in third party customers in the first six months and, to a certain extent, this offset the lower volumes on own routes.

The ownership interest in the Norwegian terminal, Moss Container Terminal, was increased to 100% from 50% at 1 April.

An efficiency improvement project will be implemented during the second half of the year at the DFDS Nordic Terminal in Immingham. The

aim is to achieve a significant improvement of the terminal's profit level.

Earnings performance

Revenue for the first half-year was DKK 337 million, which was 4% lower than the same period last year. The decrease in revenue is attributable to slightly lower volumes from own routes and the depreciation of the British pound, GBP.

Operating profit before depreciation (EBITDA) for the half-year amounted to DKK 4 million, a decrease of DKK 1 million. Compared with the profit for H1 2007, profits in H1 2008 were affected by DKK 3 million in costs related to preparation of the effciency project at DFDS Nordic Terminal. Adjusting for this, profits improved primarily due to third party business.

The return on invested capital for H1 2008 was negative 3% p.a.

Trailer Services

Trailer Services operates trailer companies in Norway, Sweden, Denmark, Finland, Germany, Belgium, the Netherlands, Great Britain and Ireland that primarily services the market with transport solutions using DFDS's route network.

			2007			2008		2008	2007
DKK mill.	Q1	Q2	Q3	Q4	Full year	Q1	Q2	H1	H1
Trailer Services
Revenue	250	250	242	244	986	258	262	520	500
Operating profit before depreciation (EBITDA)	14	18	11	14	57	15	10	25	32
Sale of assets	0	0	0	0	0	0	0	0	0
Depreciation	-9	-8	-9	-8	-34	-8	-6	-14	-17
Operating profit (EBIT)	5	10	2	6	23	7	4	11	15
Operating profit margin (EBIT), %	2.0	4.0	0.8	2.5	2.3	2.7	1.5	2.1	3.0
Invested capital, average	209	201	212	233	218	234	229	232	208
Return on invested capital (ROIC) p.a., %	10.7	16.6	6.4	9.1	10.4	13.5	5.5	8.8	13.0
Shipments, '000	22	22	21	21	86	21	22	43	44

Market trends

The main markets for Trailer Services are Sweden, the UK and Benelux. The activity level was relatively stable on the Scandinavian markets whereas market growth on the Continent slowed, resulting in an increase in price competition.

The increase in diesel costs resulted in a significant rise in haulage costs, which on some markets only can be passed on to customers to a limited degree. To some extent, this is due to a lag in the reflection of changed market conditions in new freight contracts. In addition, there is increasing competition from eastern European hauliers.

Operational developments

The total number of consignments for the halfyear declined by 2%, which was primarily due to the Belgian trailer operator who experienced a downward trend in car industry volumes.

The integration of the business area's activities continued during the first half-year with the establishment of a common trailer pool for several companies and the further development of a joint door-door IT business system.

Earnings performance

Revenue for H1 rose by 4% to DKK 520 million due to diesel price surcharges and price rises whereas the number of consignments was 2% lower than the same period last year.

Operating profit before depreciation (EBITDA) fell by 22% to DKK 25 million, as the EBITDA margin was reduced to 4.8% from 6.4% in 2007. The lower profit is attributable to Trailer Services' Belgian trailer operator which accounts for around half of the business area's revenue. There was a negative impact on the company's earnings, partly due to an increase in haulage costs, which could only be charged forward to a limited extent, and partly due to problems related to the implementation of new IT business systems and the appointment of new management.

Small increases in profits were achieved for the other operations due to strict cost management and relatively stable market conditions.

The return on invested capital for H1 2008 was 9% p.a.

Statement by the Executive Board and Board of Directors

The Board of Directors and the Executive Board have today discussed and approved the interim financial report for the period 1 January – 30 June 2008 for DFDS A/S.

The interim financial report, which has not been audited or reviewed by the company's accountant, has been prepared in accordance with IAS 34, "Presentation of Interim Financial Statements", as adopted by the EU, and in accordance with additional Danish disclosure requirements for interim financial reports for listed companies.

We consider the interim financial report to provide a true and fair view of the Group's assets, liabilities and financial position at 30 June 2008 and of the result of the Group's operations and cash flows for the period 1 January – 30 June 2008.

We also consider the management's review to contain a fair account of the development of the Group's activities and financial position, the profit for the period and of the Group's financial position as a whole as well as a description of the most significant risks and uncertainties faced by the Group.

Copenhagen, 26 August 2008 Executive Board Niels Smedegaard Christian Merrild CEO CFO Board of Directors Ivar Samrén Vagn Sørensen Claus Arnhild* Chairman Vice-Chairman Michael Helbo* Jill Lauritzen Melby Anders Moberg Thomas Mørk* Ingar Skaug Lene Skole

* Members of the board elected by the employees

DFDS Group – Income Statement

2008 2007 2008 2007 DKK mill. Q2 Q2 H1 H1 Revenue 2,209.1 2,103.8 4,153.2 3,983.8 Costs: Operating costs related to ships 1,229.1 1,081.7 2,413.5 2,143.1 Charter hire 168.5 144.2 328.1 293.2 Staff costs 400.4 370.0 767.4 736.0 Other costs of operation, sales and administration 116.8 111.8 210.1 211.3 Total costs 1,914.8 1,707.7 3,719.1 3,383.6 Operating profit before depreciation (EBITDA) 294.3 396.1 434.1 600.2 Share of profit of associates -0.7 1.1 -1.3 -0.1 Profit/loss on disposal of ships, buildings and terminals 30.4 0.0 30.4 -1.7 Depreciation and impairment Ships -111.0 -108.2 -222.8 -228.6	2007
	Full year
	8,310.3
	4,434.7
	593.2
	1,529.1
	437.7
	6,994.7
	1,315.6
	-2.2
	32.5
	-451.9
Other fixed assets -33.7 -37.9 -67.1 -73.6	-143.9
Value adjustment goodwill/negative goodwill 0.7 0.3 3.6 0.5	2.0
Total depreciation and impairment -144.0 -145.8 -286.3 -301.7	-593.8
Operating profit (EBIT) 180.0 251.4 176.9 296.7	752.1
Financial income 27.2 39.6 32.7 43.1	26.8
Financial expenses -80.9 -97.0 -141.1 -158.7	-253.1
Profit before tax 126.3 194.0 68.5 181.1	525.8
Tax on profit -1.6 -17.2 -8.3 -22.3	-114.1
124.7 60.2 158.8 Profit for the period 176.8	411.7
Attributable to:
Equity holders of DFDS A/S 121.5 173.9 55.2 153.9	400.4
Minority interests 3.2 2.9 5.0 4.9 124.7 176.8 60.2 158.8	11.3 411.7
Basic earnings per share (EPS) of DKK 100 15.81 22.76 7.19 20.17	52.40
Diluted earnings per share (EPS-D) of DKK 100 15.77 22.60 7.15 19.87	52.01

DFDS Group – Balance Sheet, Assets

	30.06.	30.06.	31.12.
DKK mill.	2008	2007	2007
Non-current assets
Goodwill	336.7	302.4	327.4
Other non-current intangible assets	94.1	134.0	111.4
Software	35.2	39.6	36.1
Development projects in progress	13.7	5.3	9.6
Total non-current intangible assets	479.7	481.3	484.5
Buildings	75.2	69.2	76.5
Terminals	325.2	373.3	348.1
Ships	6,058.2	6,808.0	6,404.6
Equipment, etc.	268.0	320.8	299.4
Work in progress and prepayments	171.7	20.3	27.4
Total non-current tangible assets	6,898.3	7,591.6	7,156.0
Investments in associates	1.1	6.4	11.4
Receivables	3.0	3.0	3.0
Securities	25.9	24.6	25.8
Deferred tax assets	71.6	77.0	75.2
Total other non-current assets	101.6	111.0	115.4
Total non-current assets	7,479.6	8,183.9	7,755.9
Inventories	103.7	79.6	96.2
Trade receivables	1,053.6	921.9	935.2
Amounts owed by associates	27.8	11.5	9.5
Other receivables and current assets	139.8	166.8	79.1
Prepayments	98.4	123.0	98.1
Cash at bank and in hand	390.4	392.6	494.3
	1,813.7	1,695.4	1,712.4
Assets classified as held for sale	185.1	0.0	141.8
Total current assets	1,998.8	1,695.4	1,854.2
Total assets	9,478.4	9,879.3	9,610.1

DFDS Group – Balance Sheet, Equity and Liabilities

	30.06.	30.06.	31.12.
DKK mill.	2008	2007	2007
Equity
Share capital	800.0	800.0	800.0
Reserves	-22.9	-25.9	-53.5
Retained earnings	2,740.2	2,541.0	2,676.3
Proposed dividends	0.0	0.0	114.9
Total equity attributable to equity holders of DFDS A/S	3,517.3	3,315.1	3,537.7
Minority interests	96.7	111.0	115.6
Total equity	3,614.0	3,426.1	3,653.3
Interest bearing liabilities	3,323.4	4,012.8	3,644.8
Deferred tax	226.7	220.2	222.4
Pension and jubilee liabilities	214.5	241.7	226.7
Other provisions	0.7	0.0	1.1
Total non-current liabilities	3,765.3	4,474.7	4,095.0
Interest bearing liabilities	670.9	694.7	707.7
Trade payables	420.7	382.2	411.5
Amounts owed by associates	0.5	0.2	0.0
Other provisions	14.9	15.5	25.2
Corporation tax	30.6	28.4	22.5
Other payables	622.6	602.8	567.2
Deferred income	211.4	254.7	120.3
	1,971.6	1,978.5	1,854.4
Liabilities related to assets held for sale	127.5	0.0	7.4
Total current liabilities	2,099.1	1,978.5	1,861.8
Total liabilites	5,864.4	6,453.2	5,956.8
Total equity and liabilities	9,478.4	9,879.3	9,610.1

Statement of changes in equity – Consolidated

	Share		Reserves			Retained	Proposed	Total equity	Minority	Total
DKK mio.	capital	Currency translation		Hedging Revaluation of securities	Treasury shares	earnings	dividends	attributable to equity	interests
Equity at 1 January 2007	800.0	16.1	-91.3	12.5	-39.1	2,372.0	83.7	3,153.9	111.4	3,265.3
Equity movements H1 2007
Foreign exchange adjustment relating to
foreign companies' beginning equity and
goodwill Effect of difference between year-end and		-3.9						-3.9	-0.1	-4.0
average rates on profit		0.4						0.4	0.0	0.4
Value adjustment of hedging instruments			41.2					41.2	0.2	41.4
Value adjustment of hedging instruments transferred to revenue			-2.7					-2.7		-2.7
Value adjustment of hedging instruments
transferred to operating expenses			27.6					27.6		27.6
Value adjustment of hedging instruments transferred to financial expenses			10.3					10.3		10.3
Tax of equity movements			0.3					0.3		0.3
Value adjustment of securities				-0.7				-0.7		-0.7
Net income/(expense) recognised directly in
equity	0.0	-3.5	76.7	-0.7	0.0	0.0	0.0	72.5	0.1	72.6
Profit for the period						153.9		153.9	4.9	158.8
Total recognised income	0.0	-3.5	76.7	-0.7	0.0	153.9	0.0	226.4	5.0	231.4
Distributed dividends							-84.1	-84.1	-1.0	-85.1
Adjustments of distributed dividends 2006						-0.4	0.4	0.0		0.0
Disposal of minority interests								0.0	-4.4	-4.4
Vested re. share-based payment						9.5		9.5		9.5
Sale of treasury shares related to exercise of share options					3.4	5.6		9.0		9.0
Other adjustments						0.4		0.4		0.4
Equity movements H1 2007	0.0	-3.5	76.7	-0.7	3.4	169.0	-83.7	161.2	-0.4	160.8
Equity at 30 June 2007	800.0	12.6	-14.6	11.8	-35.7	2,541.0	0.0	3,315.1	111.0	3,426.1
Equity at 1 January 2008	800.0	-4.1	-27.3	11.8	-33.9	2,676.3	114.9	3,537.7	115.6	3,653.3
Equity movements H1 2008
Foreign exchange adjustment relating to foreign companies' beginning equity and
goodwill Effect of difference between year-end and		-10.0						-10.0	0.0	-10.0
average rates on profit		0.0						0.0	0.0	0.0
Value adjustment of hedging instruments			25.5					25.5	0.2	25.7
Value adjustment of hedging instruments transferred to revenue			1.0					1.0		1.0
Value adjustment of hedging instruments
transferred to operating expenses Value adjustment of hedging instruments			12.9					12.9		12.9
transferred to financial expenses			-2.1					-2.1		-2.1
Tax of equity movements			0.3					0.3		0.3
Value adjustment of securities				0.0				0.0		0.0
Net income/(expense) recognised directly in
equity Profit for the period	0.0	-10.0	37.6	0.0	0.0	0.0 55.2	0.0 0.0	27.6 55.2	0.2 5.0	27.8 60.2
Total recognised income	0.0	-10.0	37.6	0.0	0.0	55.2	0.0	82.8	5.2	88.0
Distributed dividends							-115.2	-115.2		-115.2
Adjustments of distributed dividends 2007 Disposal of minority interests						-0.3	0.3	0.0		0.0
Vested re. share-based payment						3.5		0.0 3.5	-24.1	-24.1 3.5
Sale of treasury shares related to exercise of
share options					3.0	5.3		8.3		8.3
Other adjustments						0.2		0.2		0.2
Equity movements H1 2008	0.0	-10.0	37.6	0.0	3.0	63.9	-114.9	-20.4	-18.9	-39.3
Equity at 30 June 2008	800.0	-14.1	10.3	11.8	-30.9	2,740.2	0.0	3,517.3	96.7	3,614.0

DFDS Consolidated Cash Flow Statement

	2008	2007	2008	2007	2007
DKK mill.	Q2	Q2	H1	H1	Full year
Operating profit before depreciation (EBITDA)	294.3	396.1	434.1	600.2	1,315.6
Adjustments for non-liquid operating items, etc.	2.6	1.1	2.8	12.3	26.4
Change in working capital	27.9	4.3	15.5	21.6	-47.7
Payment of pension liabilities and other provisions	-4.4	-2.2	-6.2	-4.0	-10.4
Cash flow from operating activities, gross	320.4	399.3	446.2	630.1	1,283.9
Interest income	13.0	10.8	23.3	18.8	50.9
Interest expenses	-88.4	-101.1	-123.4	-118.9	-274.4
Taxes paid	-7.2	-3.4	-9.0	-5.3	-19.6
Cash flow from operating activities, net	237.8	305.6	337.1	524.7	1,040.8
Ships	124.0	-26.4	-61.1	-92.7	-44.0
Buildings and terminals	-3.1	-4.9	-4.3	-8.3	-14.9
Equipment, etc.	0.3	-12.0	-1.2	-28.9	-44.4
Purchase of non-current intangible assets	-6.3	-3.8	-9.3	-7.7	-14.5
Acquisition of companies and activities	0.2	0.0	-0.3	0.0	-22.6
Acquisition of minority interests	-27.1	-0.6	-29.4	-11.5	-12.6
Associates	1.0	2.0	1.4	2.0	2.2
Cash flow from investing activities	89.0	-45.7	-104.2	-147.1	-150.8
Cash flow from financing activities
Change in loans secured by mortgages in ships	-113.6	-107.9	-176.5	-252.0	-543.9
Change in other non-current investments	0.0	0.2	0.0	4.0	4.6
Change in other financial loans	-53.8	-39.9	-64.9	-32.7	-79.6
Payment of financial lease liabilities	-7.8	-13.8	-15.6	-25.7	-39.3
Change in operating credits	-8.1	33.8	28.9	22.8	-38.5
Exercise of share options	5.5	0.4	8.3	9.0	12.9
Dividends paid to shareholders	-115.2	-83.8	-115.2	-83.8	-85.0
Cash flow from financing activities	-293.0	-211.0	-335.0	-358.4	-768.8
Cash flow for the period	33.8	48.9	-102.1	19.2	121.2
Cash at bank and in hand and securities at beginning of period	0.0	0.0	494.3	371.4	371.4
Foreign exchange adjustments	0.7	2.9	-1.8	2.0	1.7
Cash at bank and in hand and securities at end of period	34.5	51.8	390.4	392.6	494.3

The above cannot be derived directly from the income statement and the balance sheet

Notes

Note 1 Accounting policies

The interim report is presented in compliance with IAS 34, "Presentation of Interim Financial Statements", as approved by the EU, and also in accordance with additional Danish disclosure requirements for interim reports for listed companies.

The accounting policies applied remains unchanged in relation to the annual report 2007, to which reference is made.

The annual report 2007 contains a full description of the accounting policies applied.

Note 2 Segment details

DKK mill.

	Ro-Ro Shipping	Container Shipping	Passenger Shipping	Terminal Services	Trailer Services	Tramp Shipping	Non allocated	Total
H1 2007
Revenue from external customers	1,657.1	787.3	844.0	149.1	487.6	55.5	3.2	3,983.8
Inter-segment revenue	122.1	18.5	5.7	202.2	12.8	0.0	70.2	431.5
Total revenue	1,779.2	805.8	849.7	351.3	500.4	55.5	73.4	4,415.3
Profit before tax	261.2	21.2	-74.4	-14.8	12.1	-6.7	-17.5	181.1
Tax on profit							-22.3	-22.3
Profit for the period							-39.8	158.8
	Ro-Ro	Container	Passenger	Terminal	Trailer	Tramp	Non
	Shipping	Shipping	Shipping	Services	Services	Shipping	allocated	Total
H1 2008
Revenue from external customers	1,784.4	854.0	817.9	145.9	511.7	37.2	2.1	4,153.2
Inter-segment revenue	138.6	17.3	5.1	191.4	8.8	0.0	94.6	455.8
Total revenue	1,923.0	871.3	823.0	337.3	520.5	37.2	96.7	4,609.0
Profit before tax	214.8	1.0	-151.5	-13.2	8.5	31.0	-22.1	68.5
Tax on profit							-8.3	-8.3
Profit for the period							-30.4	60.2

Definitions

Operating profit before deprecia tion (EBITDA)	Profit before depreciation and impairment on non-current assets
Operating profit (EBIT)	Profit after depreciation and impairment on non-current intangible and tangible as sets
Operating profit margin	Operating profit (EBIT) x 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	Average working capital (non-interest bearing current assets minus non-interest bearing current liabilities) plus non-current intangible and tangible assets minus pen sion and jubilee liabilities and other provisions
Return on invested capital (ROIC)	Net operating profit after taxes (NOPAT) x 100 Average invested capital
Weighted average cost of capital (WACC)	The average cost of capital in percent for equity and debt weighted in relation to the capital structure
Profit for analytical purposes	Profit for the period after minority interests, excluding regulation of taxes and de ferred taxes from previous years
Free cash flow	Cash flow from operations, net excluding interest, net minus cash flow from invest ments
Return on equity	Profit for analytical purposes x 100 Average equity Excluding minority interests
Equity ratio	Equity at end of year x 100 Total assets
Earnings per share (EPS)	Profit for analytical purposes Weighted average number of ordinary shares in circulation
P/E ratio	Share price at the end of the period Earnings per share (EPS)
Dividend per share	Dividend for the year Number of shares at the end of the period
Dividend payout ratio	Dividend for the year Profit for the year after minority interests
Direct returns	Dividend per share Share price at the end of the period
Book value per share	Equity excluding minority interests at the end of the period Number of shares at the end of the period
Market-to-book value	Share price at the end of the period Book value per share