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DFDS Interim / Quarterly Report 2016
3361_rns_2016-05-12_21f47233-009c-4aab-9ed2-0f1a9f90e093.pdf
Interim / Quarterly Report
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三
EBITDA UP BY 77%
TO DKK 405M IN Q1
EARNINGS
IMPROVED
THROUGHOUT
ROUTE NETWORK
19% HIGHER
FREIGHT VOLUMES
DRIVEN BY
CHANNEL
INTERIM REPORT Q1 2016
OUTLOOK RAISED FOR 2016
DFDS
DFDS INTERIM REPORT Q1 2016
三
0
山
Q1 2016
- 9% revenue growth excluding bunker surcharges
- Volumes boosted by 36% volume growth for both freight and passengers on Channel
- Profit before tax and special items increased by DKK 170m to DKK 157m
- ROIC before special items increased to 15.3%
OUTLOOK 2016
- Revenue growth outlook of 6%
- EBITDA outlook raised to DKK 2.3-2.5bn
“All parts of DFDS’ route network and key logistics activities contributed to the best Q1 result so far. It reflects the ongoing transformation of DFDS that our weakest quarter is now in black numbers. We are continuing the journey with the launch of new projects to enhance freight customer services in our route network and reduce haulage costs in our European logistics activities”
Niels Smedegaard, CEO
For Q1 2016, reported revenue increased by 6% to DKK 3.1bn and by 9% excluding revenue from bunker surcharges.
EBITDA before special items increased by 77% to DKK 405m driven by higher volumes and average unit revenues, bunker cost savings and a positive Easter impact on the passenger activities this year.
The route network carried 19% higher freight volumes and 25% more passengers in Q1. Channel’s volume growth of 36% for both freight and passengers was a main driver of the growth following a significant capacity increase on Dover-Calais in Q1. Excluding Channel, the route network carried 5% higher freight volumes and 2% more passengers.
The Q1 result of the Nordic and Continent logistics business units was ahead of last year as was UK 6 Ireland in local currency.
The Group’s return on invested capital (ROIC) before special items increased to 15.3% for the last twelve months (LTM), up from 13.7% in 2015.
Outlook 2016
The full-year outlook for 2016 is raised following Q1 earnings above expectations and continued positive market trends on most routes in the network.
The Group’s revenue is still expected to increase by around 6%, excluding revenue from bunker surcharges.
The Group’s EBITDA before special items is now expected to increase to a range of DKK 2,300-2,500m compared to a range of DKK 2,100-2,300m previously (2015: DKK 2,041m).
KEY FIGURES
| DKK m | Q1 | Q1 | LTM | LTM | FY | ||
|---|---|---|---|---|---|---|---|
| Before special items | 2016 | 2015 | Δ % | 2015-16 | 2014-15 | Δ % | 2015 |
| Revenue | 3,088 | 2,926 | 6% | 13,636 | 12,857 | 6% | 13,473 |
| EBITDA | 405 | 228 | 77% | 2,218 | 1,570 | 41% | 2,041 |
| EBIT | 181 | 27 | 565% | 1,353 | 800 | 69% | 1,199 |
| Profit before tax | 157 | -13 | n.a. | 1,249 | 667 | 87% | 1,079 |
DFDS A/S
Sundkrogsgade 11
DK-2100 Copenhagen Ø
CVR 14 19 47 11
www.dfdsgroup.com
12 May 2016
Company announcement no.
29/2016
CONTACT
Niels Smedegaard, CEO
+45 33 42 34 00
Torben Carlsen, CFO
+45 33 42 32 01
Søren Brøndholt Nielsen, IR
+45 33 42 33 59
Gert Jakobsen, Communications
+45 33 42 32 97
CONFERENCE CALL
TODAY AT 9.45 AM. CET
Phone numbers to the call:
DK +45 70223500
US +1 646 722 4972
UK +44 20 75721187
Access code: 78777466#
DISCLAIMER
The statements about the future in this announcement contain risks and uncertainties and actual developments may therefore diverge considerably from statements about the future.
DFDS INTERIM REPORT Q1 2016
三
DFDS GROUP KEY FIGURES
KEY FIGURES
| DKK m | 2016 Q1 | 2015 Q1 | 2015-2016 LTM | 2015 Full year |
|---|---|---|---|---|
| Income statement | ||||
| Revenue | 3,088 | 2,926 | 13,636 | 13,473 |
| • Shipping Division | 2,020 | 1,894 | 9,197 | 9,071 |
| • Logistics Division | 1,220 | 1,175 | 5,079 | 5,034 |
| • Non-allocated Items | 86 | 77 | 321 | 312 |
| • Eliminations | -238 | -220 | -961 | -943 |
| Operating profit before depreciation (EBITDR) and special Items | 405 | 228 | 2,218 | 2,041 |
| • Shipping Division | 367 | 189 | 2,084 | 1,906 |
| • Logistics Division | 54 | 52 | 236 | 234 |
| • Non-allocated Items | -16 | -13 | -103 | -99 |
| Profit/loss on disposal of non-current assets, net | 1 | 0 | 6 | 5 |
| Operating profit (EBIT) before special Items | 181 | 27 | 1,353 | 1,199 |
| Special Items, net | 0 | -2 | -33 | -36 |
| Operating profit (EBIT) | 181 | 25 | 1,320 | 1,164 |
| Financial Items, net | -24 | -41 | -104 | -121 |
| Profit before tax | 157 | -16 | 1,216 | 1,043 |
| Profit for the period | 143 | -27 | 1,182 | 1,011 |
| Profit for the period excluding non-controlling Interest | 144 | -27 | 1,182 | 1,011 |
| Capital | ||||
| Total assets | 13,161 | 12,221 | - | 12,646 |
| DFDS R/S' share of equity | 6,008 | 5,887 | - | 6,480 |
| Equity | 6,057 | 5,938 | - | 6,530 |
| Net Interest bearing debt | 2,952 | 2,694 | - | 1,773 |
| Invested capital, end of period | 9,083 | 8,674 | - | 8,363 |
| Invested capital, average | 8,723 | 8,654 | 8,625 | 8,535 |
| Average number of employees | 6,791 | 6,322 | 6,733 | 6,616 |
KEY FIGURES
| DKK m | 2016 Q1 | 2015 Q1 | 2015-2016 LTM | 2015 Full year |
|---|---|---|---|---|
| Cash flows | ||||
| Cash flows from operating activities, before financial items and after tax | 454 | 197 | 2,464 | 2,207 |
| Cash flows from Investing activities | -349 | -104 | -815 | -571 |
| • Acquisition of enterprises and activities | 0 | -9 | 2 | -7 |
| • Other Investments, net | -349 | -95 | -818 | -564 |
| Free cash flow | 105 | 93 | 1,648 | 1,637 |
| Key operating and return ratios | ||||
| Number of ships | 56 | 56 | - | 54 |
| Revenue growth, % | 5.5 | 2.7 | 1.2 | 5.4 |
| EBITDR-margin, % | 13.1 | 7.8 | 16.3 | 15.1 |
| Operating margin, % | 5.9 | 0.9 | 9.9 | 8.9 |
| Revenue, Invested capital average, (times) | - | - | 1.6 | 1.6 |
| Return on Invested capital (ROIC), % | - | - | 15.0 | 13.3 |
| ROIC before special items, % | - | - | 15.3 | 13.7 |
| Return on equity, % | - | - | 19.9 | 16.1 |
| Key capital and per share ratios | ||||
| Equity ratio, % | 46.0 | 48.6 | - | 51.6 |
| Net Interest bearing debt/EBITDR, (times) | - | - | 1.3 | 0.9 |
| Earnings per share (EPS), DKK | 2.4 | -0.4 | 19.8 | 16.8 |
| Dividend paid per share, DKK | 0 | 3.6 | 5.4 | 5.4 |
| Number of shares, end of period, '000 | 61,500 | 63,250 | - | 61,500 |
| Weighted average number of circulating shares, '000 | 59,172 | 60,455 | - | 60,067 |
| Share price, DKK | 238.0 | 147.8 | - | 267.0 |
| Market value | 13,919 | 8,951 | - | 15,840 |
Definitions on page 24.
DFDS INTERIM REPORT Q1 2016
三
NORTH EUROPEAN MARKET OVERVIEW
In Q1, moderate economic growth continued in most of DFDS' European markets. Freight volumes between the UK and the Continent continued to grow during the quarter. Volumes between Scandinavia and the Continent also increased during the quarter while volume growth between Scandinavia and the UK was more subdued.
Passenger volumes recovered between the UK and the Continent during Q1 following the Paris attacks in mid-November 2015. Q1 passenger volumes were increased compared to 2015 by the early Easter in Q1 vs Q2 in 2015.
IMPORTANT EVENTS IN Q1
Deployment of two new Channel ferries
Two chartered Channel ferries were deployed on the Dover-Calais route on 9 February 2016 and 23 February 2016 respectively. The two ferries replaced a chartered ferry that subsequently was redelivered.
Ahead of their deployment, the ferries were renovated and upgraded and DFDS now operates a total of six ferries out of Dover to Calais and Dunkirk respectively, with three ferries on each route.
Distribution to shareholders: Share buybacks
On 12 February 2016, a total share buyback programme of DKK 650m was launched comprising two share buybacks to align DFDS' capital structure to the targeted leverage.
The first buyback of up to DKK 400m was structured as an auction process and completed on 24 February 2016. 1,600,000 shares were acquired for DKK 250 per share equal to DKK 400m.
The second buyback of DKK 250m started on 12 February 2016 and is to be completed on 17 August 2016 at the latest. 54% of the buyback was completed on 10 May 2016.
Distribution to shareholders: Dividends
On 31 March 2016, the annual general meeting (RGM) approved the proposal of the Board of Directors to distribute a dividend of DKK 3.00 per share. In addition, the Board of Directors was authorised to pay out extraordinary dividends and plan to distribute a further dividend of DKK 2.00 per share in August 2016.
The total dividend payment in 2016 is expected to amount to DKK 300m. Including share buybacks, the total distribution to shareholders is thus expected to be DKK 950m in 2016.
IMPORTANT EVENTS AFTER Q1
There are no important events to report.
FINANCIAL PERFORMANCE
Revenue
The Group's revenue in Q1 was DKK 3,088m, an increase of 5.5% compared to 2015. Revenue increased by 8.9% excluding bunker surcharges.
REVENUE
| DKK m | Q1 2016 | Q1 2015 | Change, % | Change |
|---|---|---|---|---|
| Shipping Division | 2,020 | 1,894 | 6.6 | 126 |
| Logistics Division | 1,220 | 1,175 | 3.8 | 45 |
| Non-allocated items | 86 | 77 | 11.9 | 9 |
| Eliminations | -238 | -220 | -8.1 | -18 |
| DFDS Group | 3,088 | 2,926 | 5.5 | 162 |
OPERATING PROFIT BEFORE DEPRECIATION (EBITDA) & SPECIAL ITEMS
| DKK m | Q1 2016 | Q1 2015 | Change, % | Change |
|---|---|---|---|---|
| Shipping Division | 367 | 189 | 94.4 | 178 |
| Logistics Division | 54 | 52 | 4.0 | 2 |
| Non-allocated items | -16 | -13 | -30.4 | -4 |
| DFDS Group | 405 | 228 | 77.4 | 177 |
| EBITDA-margin, % | 13.1 | 7.8 | 68.1 | 5.3 |
The Shipping Division's Q1 revenue of DKK 2,020m increased by 6.6% and by 12.3% excluding bunker surcharges. The growth was driven by 19.2% higher freight volumes and 24.8% more passengers as well as higher average unit revenues. Excluding Channel, where capacity was significantly increased during Q1, volume growth was 5.1% and 2.3% respectively.
The Logistics Division's Q1 revenue of DKK 1,220m increased by 3.8% mainly driven by the addition of major new logistics contracts in Sweden, England and Germany as well as revenue growth for traffics between the UK and Benelux. Revenue was negatively impacted by reduced fuel surcharges and the depreciation of the British pound.
Operating profit before depreciation (EBITDA) and special items
The Group's EBITDA increased by 77% to DKK 405m in Q1 primarily driven by higher earnings in the Shipping Division.
The Shipping Division's Q1 EBITDA increased by 94% to DKK 367m. EBITDA was increased in all five business units with the largest contributions from Baltic Sea, North Sea and Channel. Baltic Sea's result was boosted by extra freight volumes following a border dispute between Poland and Russia regarding licenses for Russian truck drivers.
DFDS INTERIM REPORT Q1 2016
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The dispute was settled at the end of Q1. Passenger's result was boosted by lower bunker costs and the early Easter compared to 2015.
The Logistics Division's Q1 EBITDA increased by 4% to DKK 54m driven by improved results for the Nordic and Continent business units.
Depreciation and operating profit (EBIT) before special items
Depreciation in Q1 increased by DKK 26m to DKK 224m. The increase was primarily related to higher ship depreciations, including depreciations related to additional ferry capacity on Dover-Calais in Q1 and full-year impact of scrubber installations completed in 2015.
The Group's EBIT before special items for Q1 was DKK 181m, an increase of DKK 153m compared to 2015.
Financial items
The total net cost of financing in Q1 decreased by DKK 17m mainly due to a gain on net currency adjustments compared to a loss in Q1 2015. The net interest cost was on a level with 2015 while the variance on Other items was DKK -17m mainly due to one-off incomes in Q1 2015 and one-off costs in Q1 2016.
Profit before tax
The profit before tax for Q1 was DKK 157m, an improvement of DKK 173m. The profit after tax was DKK 143m.
Earnings per share (EPS) for the quarter increased to DKK 2.4 from DKK -0.4 in Q1 2015.
Cash flow and investments
The free cash flow (FCFF) of Q1 was DKK 105m after investments of DKK 349m, including DKK 133m related to the two Channel ferries deployed in February 2016.
The cash flow from financing activities was negative by DKK 563m in Q1, including distribution to shareholders of DKK 476m through share buybacks. The net cash flow for Q1 was negative by DKK 477m and at the end of Q1 cash amounted to DKK 943m.
For the last twelve months, the free cash flow (FCFF) was DKK 1,648m after investments of DKK 815m.
Capital structure
At the end of Q1 net-interest-bearing debt (NIBD) was DKK 2,952m, an increase from DKK 1,773m at year-end 2015 following the finance lease of two Channel ferries and the DKK 400m share buyback completed at the end of February 2016. Financial leverage, as measured by the ratio of NIBD to EBITDA before special items for the last twelve months, was a multiple of 1.3 compared to 0.9 at year-end 2015.
The equity ratio was 46% at the end of Q1.
Equity
Equity amounted to DKK 6,057m at the end of Q1 2016, including minority interests of DKK 49m. This was a decrease of DKK 473m
DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS
ASSOCIATES AND JOINT VENTURES, PROFITS ON DISPOSALS AND DEPRECIATION
| DKK m | Q1 2016 | Q1 2015 | Change, % | Change |
|---|---|---|---|---|
| EBITDA before special items | 405 | 228 | 77.4 | 177 |
| Associates and joint ventures | -1 | -3 | 76.7 | 2 |
| Profit on disposals | 1 | 0 | n.a. | 1 |
| Depreciation | -224 | -198 | -13.3 | -26 |
| EBIT before special items | 181 | 27 | 564.4 | 153 |
FINANCE, NET
| DKK m | Q1 2016 | Q1 2015 | Change, % | Change |
|---|---|---|---|---|
| Interest, net | -20 | -21 | 5.9 | 1 |
| Foreign exchange gains/losses, net | 9 | -24 | n.a. | 33 |
| Other Items | -12 | 5 | n.a. | -17 |
| Total finance, net | -24 | -41 | 41.7 | 17 |
DFDS INTERIM REPORT Q1 2016
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compared to year-end 2015. Total comprehensive income for Q1 2016 was DKK 114m while transactions with owners reduced equity by DKK -586m, including declared dividends transferred to liabilities of DKK 175m, buyback of shares of DKK 476m and an income of DKK 63m from the sale of treasury shares related to the exercise of share options.
Invested capital and ROIC
Invested capital increased by 8.6% to DKK 9,083m at the end of Q1 compared to year-end 2015 mainly due to the capitalisation of the two Channel ferries. Average invested capital increased by 2.2% to DKK 8,723m.
For the last twelve months, the return on invested capital, ROIC, was 15.3% before special items compared to 13.7% for 2015. Including special items, ROIC was 15.0% compared to 13.3% for 2015.
DFDS' financial performance goal is a ROIC of at least 10% achieved over a business cycle.
OUTLOOK RRISED FOR 2016
The outlook for 2016 is raised following a result for Q1 above expectations and continued positive market trends on most routes in the network.
The Group's revenue is still expected to increase by around 6%, excluding revenue from bunker surcharges, as revenue growth above expectations in the Shipping Division is offset by lower revenue growth in the Logistics Division due to reduced fuel sur
charges and depreciation of the British pound.
The Group's EBITDA before special items is now expected to increase to a range of DKK 2,300-2,500m compared to a range of previously DKK 2,100-2,300m.
Investments are still expected to amount to around DKK 1.6bn in 2016. This includes two Channel ferries delivered in February 2016 on finance leases. The ferries have consequently been capitalised but the delivery of the ferries is a non-cash transaction until such time that Eurotunnel may decide to exercise their put option, giving the right to sell the ferries to DFDS.
A number of risks and uncertainties pertain to the outlook. The most important among these are possible major changes in the demand for ferry shipping and transport and logistics services. For DFDS, such demand is to a large extent linked to the level of economic activity in primarily Europe, particularly northern Europe, but also adjacent regions, as well as to competitor actions. The outlook can also be impacted by political changes within the EU, particularly the outcome of the UK referendum on 23 June 2016, as well as changes in economic variables, particularly the oil price and exchange rates. Consequently, the future financial results may differ significantly from expectations.
OUTLOOK 2016
| DKK m | 2016
NEW | 2016
PREVIOUS | 2015 |
| --- | --- | --- | --- |
| Revenue growth | 6%¹ | 6%¹ | 13,473 |
| EBITDA before special items | 2,300-2,500 | 2,100-2,300 | 2,041 |
| Per division: | | | |
| Shipping Division | 2,150-2,325 | 1,950-2,125 | 1,906 |
| Logistics Division | 250-275 | 250-275 | 234 |
| Non-allocated items | -100 | -100 | -99 |
| Depreciation | +10% | +10% | -835 |
| Special items | 0 | 0 | -36 |
| Investments | 1,600 | 1,600 | 571 |
¹Excluding bunker surcharges. The revenue growth is expected to be around 3% including bunker surcharges
NO SMOKING
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DFDS INTERIM REPORT Q1 2016
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SHIPPING DIVISION
The Shipping Division operates DFDS' route network organised in five business units:
- North Sea
- Baltic Sea
- Channel
- France & Mediterranean
- Passenger
SHIPPING
| DKK m | 2016 Q1 | 2015 | 2015-2016 LTM | 2015 Full year | |||
|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | ||||
| Revenue | 2,020 | 1,894 | 2,316 | 2,677 | 2,184 | 9,197 | 9,071 |
| EBITDR before special items | 367 | 189 | 517 | 816 | 385 | 2,084 | 1,906 |
| Share of profit/loss of associates and joint ventures | -1 | -3 | -5 | -3 | 0 | -9 | -11 |
| Profit/loss on disposal of non-current assets, net | 0 | 0 | 0 | 1 | 0 | 1 | 1 |
| Depreciation and impairment | -194 | -168 | -172 | -187 | -190 | -742 | -716 |
| EBIT before special items | 173 | 18 | 341 | 626 | 195 | 1,334 | 1,180 |
| EBIT margin before special items, % | 8.6 | 1.0 | 14.7 | 23.4 | 8.9 | 14.5 | 13.0 |
| Special items, net | 0 | 0 | -9 | 0 | -30 | -39 | -39 |
| EBIT | 173 | 18 | 332 | 626 | 165 | 1,296 | 1,141 |
| Invested capital, average | 7,845 | 7,971 | 7,951 | 7,832 | 7,585 | 7,874 | 7,799 |
| ROIC before special items, % | - | - | - | - | - | 16.7 | 14.9 |
| Lane metres, '000 | 8,646 | 7,252 | 7,526 | 8,131 | 8,424 | 32,727 | 31,333 |
| Passengers, '000 | 1,203 | 967 | 1,544 | 2,339 | 1,344 | 6,430 | 6,194 |
Q1 MARKET, ACTIVITY AND RESULT TRENDS
North Sea
Freight volumes in Q1 were 3.6% above 2015. Volume growth was highest on the routes between Denmark/Germany/Benelux and the UK supported by some capacity expansion. Volumes also continued to grow in the Sweden-Continent corridor while a reduction of capacity between Sweden and the UK contributed to lower volumes in this corridor.
EBIT increased by 47% to DKK 128m driven by higher volumes impacting both route and port terminal earnings positively as well as benefits from the fitting of scrubbers on several ships in 2015.
Baltic Sea
Freight volumes in Q1 were 10.1% above 2015. Freight volumes were boosted on the routes between Germany/Sweden and Lithuania by a reduction in licenses allowing Russian truck drivers to cross Poland following a border dispute between Poland and Russia. The dispute was settled at the end of Q1. Volumes were reduced on the routes between Denmark and Lithuania and between Russia and Germany as capacity was reduced by deployment of a smaller ship and conversion to a slot charter respectively. Passenger operations were on a level with last year.
EBIT increased by DKK 64m to DKK 78m following an overflow of freight volumes from the border dispute, the conversion of the Russian route to a slot charter and benefits from the fitting of scrubbers on several ships in 2015.
DFDS INTERIM REPORT Q1 2016
三
Channel
Freight volumes in Q1 increased by 36.1% while passenger volumes increased by 35.8%. The high volume growth reflects the expansion of capacity on Dover-Calais from one ferry in Q1 2015 to two ferries for around half of Q1 2016 and three ferries for around the other half of the quarter. The number of departures was more than doubled on the route in the quarter.
EBIT improved by DKK 23m to DKK 8m from a loss of DKK -15m as higher volumes and unit revenues more than offset the extra costs related to the capacity increase.
France & Mediterranean
Freight volumes in Q1 were 7.9% above 2015 and passenger volumes were up by 2.5%. The freight volume growth was mainly driven by the Newhaven-Dieppe route.
EBIT was a loss of DKK 7m which was on a level with 2015 as higher ship costs offset the increase in earnings from the higher volumes.
Passenger
The number of passengers in Q1 increased by 3.1% following increased activity on both the Copenhagen-Oslo and Amsterdam-Newcastle routes due to the early Easter compared to 2015 where Easter was part of Q2.
EBIT increased by DKK 14m to DKK -60m as the lower oil price reduced bunker costs and the early Easter boosted revenue compared to 2015.
DFDS INTERIM REPORT Q1 2016
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SHIPPING DIVISION
| DKK m | 2016 Q1 | 2015 | 2015-2016 LTM | 2015 Full year | |||
|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | ||||
| NORTH SER | |||||||
| Revenue | 812 | 832 | 883 | 849 | 838 | 3,382 | 3,402 |
| EBIT before special items | 128 | 87 | 125 | 125 | 120 | 499 | 458 |
| Invested capital | 4,018 | 4,333 | 4,554 | 4,486 | 4,110 | 4,300 | 4,368 |
| ROIC before special items, % | - | - | - | - | - | 11.5 | 10.3 |
| Lane metres freight, '000 | 2,805 | 2,708 | 2,802 | 2,816 | 2,833 | 11,256 | 11,159 |
| BALTIC SER | |||||||
| Revenue | 299 | 289 | 329 | 346 | 290 | 1,264 | 1,254 |
| EBIT before special items | 78 | 14 | 71 | 93 | 53 | 295 | 231 |
| Invested capital | 1,056 | 1,290 | 1,170 | 1,106 | 982 | 1,121 | 1,148 |
| ROIC before special items, % | - | - | - | - | - | 26.2 | 19.9 |
| Lane metres freight, '000 | 938 | 852 | 895 | 880 | 879 | 3,593 | 3,507 |
| Passengers, '000 | 73 | 69 | 90 | 112 | 77 | 352 | 349 |
| CHANNEL | |||||||
| Revenue | 428 | 317 | 416 | 652 | 468 | 1,963 | 1,853 |
| EBIT before special items | 8 | -15 | 12 | 178 | 23 | 221 | 198 |
| Invested capital | 2,227 | 1,241 | 1,222 | 1,235 | 1,108 | 1,407 | 1,203 |
| ROIC before special items, % | - | - | - | - | - | 15.7 | 16.4 |
| Lane metres freight, '000 | 4,493 | 3,302 | 3,371 | 3,964 | 4,287 | 16,115 | 14,923 |
| Passengers, '000 | 852 | 628 | 992 | 1,624 | 920 | 4,388 | 4,163 |
| FRANCE & MEDITERRANEAN | |||||||
| Revenue | 98 | 101 | 118 | 148 | 133 | 498 | 501 |
| EBIT before special items | -7 | -7 | 7 | 15 | -10 | 5 | 5 |
| Invested capital | -71 | 31 | -11 | -47 | -67 | -33 | -36 |
| ROIC before special items, % | - | - | - | - | - | n.a. | n.a. |
| Lane metres freight, '000 | 274 | 254 | 305 | 333 | 266 | 1,178 | 1,158 |
| Passengers, '000 | 37 | 36 | 93 | 183 | 51 | 363 | 362 |
| PASSENGER | |||||||
| Revenue | 286 | 277 | 490 | 610 | 366 | 1,750 | 1,742 |
| EBIT before special items | -60 | -73 | 103 | 189 | 0 | 232 | 219 |
| Invested capital | 566 | 697 | 664 | 663 | 602 | 638 | 677 |
| ROIC before special items, % | - | - | - | - | - | 35.6 | 31.3 |
| Lane metres freight, '000 | 135 | 136 | 154 | 138 | 158 | 585 | 586 |
| Passengers, '000 | 241 | 234 | 369 | 420 | 296 | 1,326 | 1,319 |
| NON-ALLOCATED ITEMS | |||||||
| Revenue | 149 | 122 | 127 | 127 | 145 | 549 | 522 |
| EBIT before special items | 26 | 13 | 23 | 26 | 8 | 82 | 69 |
The Invested capital in the quarter is shown as per the end of the period. For the full year, the Invested capital is shown as an average.
DFDS INTERIM REPORT Q1 2016
三
LOGISTICS DIVISION
The Logistics Division operates DFDS' logistics activities organised in three business units:
- Nordic
- Continent
- UK & Ireland
LOGISTICS
| DKK m | 2016 Q1 | 2015 | 2015-2016 LTM | 2015 Full year | |||
|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | ||||
| Revenue | 1,220 | 1,175 | 1,283 | 1,281 | 1,294 | 5,079 | 5,034 |
| EBITDA before special items | 54 | 52 | 58 | 59 | 65 | 236 | 234 |
| Profit/loss on disposal of non-current assets, net | 1 | 0 | 0 | 1 | 2 | 5 | 4 |
| Depreciation and impairment | -24 | -24 | -24 | -23 | -24 | -95 | -95 |
| EBIT before special items | 30 | 28 | 35 | 37 | 43 | 145 | 143 |
| EBIT margin before special items, % | 2.5 | 2.4 | 2.7 | 2.9 | 3.3 | 2.9 | 2.8 |
| Special items, net | 0 | 0 | 0 | 0 | 9 | 9 | 9 |
| EBIT | 31 | 28 | 35 | 37 | 51 | 154 | 151 |
| Invested capital, average | 1,122 | 1,099 | 1,090 | 1,089 | 1,123 | 1,105 | 1,104 |
| ROIC before special items, % | - | - | - | - | - | 12.1 | 11.9 |
| Tons, '000 | 114.3 | 109.0 | 97.9 | 86.1 | 110.2 | 408.4 | 403.1 |
| Units, '000 | 125.7 | 108.9 | 114.2 | 113.2 | 117.6 | 470.6 | 453.9 |
Q1 MARKET, ACTIVITY AND RESULT TRENDS
Nordic
The number of transported units increased in Q1 by 6.5% compared to 2015 due to increased activity in the Swedish, Danish and, not least, Baltic markets. Norwegian volumes were below 2015 mainly due to a drop in container volumes. The automotive contract logistics activities in Sweden continued to grow in Q1 although the overall earnings impact was slightly negative. Volumes are not reported for these activities.
EBIT increased by 23% to DKK 13m as higher earnings in the Baltic and Swedish markets offset a lower result in Norway.
Continent
The number of transported units in Q1 increased by 9.5% compared to 2015 with higher volumes in the main traffic areas between the Continent and the UK and Scandinavia respectively. Volume growth was boosted by a new automotive logistics contract that commenced operations in Q4 2015.
EBIT increased by 21% to DKK 9m as the higher levels of activity improved earnings offsetting a loss in the Italian activities that included one-off costs related to management changes.
UK & Ireland
The number of transported units in Q1 increased by 34.0% compared to 2015 driven by new contract logistics activities for cold stores in England. Since the commencement of the contract for one cold store in Q4 2015 a further two cold stores were added during
Q1 2016. Volumes were reduced by lower activity levels between Northern Ireland and England and the Continent as well as lower steel volumes.
EBIT decreased by 15% to DKK 8m mainly due to the loss of a logistics contract for a food manufacturer in 2015 and costs related to the commencement of new cold store contracts. Results for the temperature-controlled activities in England and Scotland were on a level with 2015. The business unit's EBIT was above last year in local currency.
DFDS INTERIM REPORT Q1 2016
^{}[]
^{}[]
LOGISTICS DIVISION
| DKK m | 2016 Q1 | 2015 | 2015-2016 LTM | 2015 Full year | |||
|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | ||||
| Nordic | |||||||
| Revenue | 411 | 392 | 430 | 412 | 425 | 1,678 | 1,659 |
| EBIT before special items | 13 | 10 | 9 | 7 | 17 | 46 | 43 |
| Invested capital | 320 | 315 | 356 | 342 | 345 | 336 | 342 |
| ROIC before special items, % | - | - | - | - | - | 13.2 | 12.2 |
| Units, '000 *} | 30.5 | 28.6 | 28.6 | 28.1 | 28.3 | 115.5 | 113.6 |
| Tons, '000 | 114.3 | 109.0 | 97.9 | 86.1 | 110.2 | 408.4 | 403.1 |
| Continent | |||||||
| Revenue | 489 | 455 | 485 | 488 | 490 | 1,952 | 1,918 |
| EBIT before special items | 9 | 8 | 10 | 7 | 9 | 35 | 33 |
| Invested capital | 350 | 338 | 297 | 322 | 325 | 327 | 326 |
| ROIC before special items, % | - | - | - | - | - | 10.2 | 9.9 |
| Units, '000 | 55.7 | 50.8 | 54.3 | 52.5 | 54.5 | 216.9 | 212.1 |
| UK & Ireland | |||||||
| Revenue | 353 | 350 | 414 | 416 | 413 | 1,596 | 1,593 |
| EBIT before special items | 8 | 10 | 17 | 23 | 17 | 65 | 66 |
| Invested capital | 426 | 449 | 425 | 435 | 477 | 442 | 437 |
| ROIC before special items, % | - | - | - | - | - | 13.0 | 13.0 |
| Units, '000 | 39.5 | 29.5 | 31.4 | 32.6 | 34.7 | 138.2 | 128.2 |
| Non-allocated items | |||||||
| Revenue | 54 | 16 | 73 | 46 | 54 | 227 | 189 |
| EBIT before special items | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
- Excluding volumes related to automotive contract logistics.
The Invested capital in the quarter is shown as per the end of the period. For the full year, the Invested capital is shown as an average.
DFDS INTERIM REPORT Q1 2016
三
MANAGEMENT STATEMENT
The Board of Directors and the Executive Board have reviewed and approved the interim report of DFDS R/S for the period 1 January – 31 March 2016.
The interim report, which has not been audited or reviewed by the Company's auditor, has been prepared in accordance with IRS 34, "Interim Financial Reporting", as adopted by the EU, and additional Danish interim reporting requirements for listed companies.
In our opinion, the interim report gives a true and fair view of the DFDS Group's assets, liabilities and financial position at 31 March 2016 and of the results of the DFDS Group's operations and cash flow for the period 1 January – 31 March 2016.
Further, in our opinion, the Management review p. 1-12 gives a true and fair review of the development in the Group's operations and financial matters, the result of the DFDS Group's operations for the period and the financial position as a whole.
Copenhagen, 12 May 2016
EXECUTIVE BOARD NIELS SMEDEGAARD President & CEO, TORBEN CARLSEN CFO
BOARD OF DIRECTORS BENT ØSTERGAARD Chair, CLAUS HEMMINGSEN Deputy Chair,
PERNILLE ERENBJERG, JILL LAURITZEN MELBY,
JØRGEN JENSEN, KLAUS NYBORG,
JENS OTTO KNUDSEN, KENT VILDBÆK, LARS SKJOLD-HANSEN
DFDS INTERIM REPORT Q1 2016
三
0
DFDS GROUP - INCOME STATEMENT
| DKK m | Note | 2016 Q1 | 2015 Q1 | 2015-2016 LTM | 2015 Full year |
|---|---|---|---|---|---|
| Revenue | 3,088.0 | 2,925.8 | 13,635.7 | 13,473.5 | |
| Costs | |||||
| Operating costs | -1,742.9 | -1,838.6 | -7,535.1 | -7,630.9 | |
| Charter hire | -160.7 | -141.7 | -644.1 | -625.0 | |
| Employee costs | -627.1 | -578.2 | -2,536.5 | -2,487.7 | |
| Costs of sales and administration | -152.7 | -139.2 | -702.5 | -689.0 | |
| Operating profit before depreciation (EBITDR) and special items | 404.6 | 228.1 | 2,217.5 | 2,041.0 | |
| Share of profit/loss of associates and joint ventures | -0.8 | -3.2 | -9.2 | -11.7 | |
| Profit/loss on disposal of non-current assets, net | 1.0 | 0.2 | 5.7 | 4.9 | |
| Depreciation, ships | -180.3 | -155.7 | -686.0 | -661.4 | |
| Depreciation, other non-current assets | -43.9 | -42.0 | -172.4 | -170.6 | |
| Impairment losses, ships and other non-current assets | - | -0.1 | -2.6 | -2.8 | |
| Operating profit (EBIT) before special items | 180.7 | 27.2 | 1,352.9 | 1,199.4 | |
| Special Items, net | 3 | 0.4 | -2.4 | -32.8 | -35.5 |
| Operating profit (EBIT) | 181.0 | 24.8 | 1,320.1 | 1,163.9 | |
| Financial income | 0.5 | 14.9 | 11.3 | 25.7 | |
| Financial costs | -24.1 | -55.5 | -115.1 | -146.5 | |
| Profit before tax | 157.4 | -15.7 | 1,216.2 | 1,043.1 | |
| Tax on profit | -14.0 | -11.6 | -34.3 | -31.9 | |
| Profit for the period | 143.4 | -27.4 | 1,182.0 | 1,011.2 | |
| Attributable to: | |||||
| Equity holders of DFDS R/S | 143.6 | -26.8 | 1,181.9 | 1,011.5 | |
| Non-controlling interests | -0.1 | -0.5 | 0.1 | -0.3 | |
| Profit for the period | 143.4 | -27.4 | 1,182.0 | 1,011.2 | |
| Earnings per share | |||||
| Basic earnings per share (EPS) of DKK 20, DKK | 2.4 | -0.4 | 19.8 | 16.8 | |
| Diluted earnings per share (EPS-D) of DKK 20, DKK | 2.4 | -0.4 | 19.4 | 16.5 |
DFDS INTERIM REPORT Q1 2016
三
DFDS GROUP - COMPREHENSIVE INCOME
| 2016 | 2015 | 2015-2016 | 2015 | |
|---|---|---|---|---|
| DKK m | Q1 | Q1 | LTM | Full year |
| Profit for the period | 143.4 | -27.4 | 1,182.0 | 1,011.2 |
| Other comprehensive income | ||||
| Items that will not subsequently be reclassified to the income statement: | ||||
| Remeasurement of defined benefit pension obligations | 0 | 0.2 | -41.4 | -41.2 |
| Tax on items that will not be reclassified to the income statement | 0 | 0.1 | 8.3 | 8.4 |
| Items that will not be reclassified subsequently to the income statement | 0 | 0.2 | -33.1 | -32.9 |
| Items that are or may subsequently be reclassified to the income statement: | ||||
| Value adjustment of hedging instruments: | ||||
| Value adjustment for the period | 11.5 | 45.6 | -104.1 | -70.0 |
| Value adjustment transferred to operating costs | 9.4 | 9.6 | 30.3 | 30.5 |
| Value adjustment transferred to financial costs | -17.5 | -40.3 | 84.1 | 61.3 |
| Foreign exchange adjustments, subsidiaries | -33.2 | 91.4 | -66.2 | 58.4 |
| Unrealised value adjustment of securities | 0 | -0.2 | -1.1 | -1.4 |
| Impairment of securities transferred to financial costs | 0 | 0 | 1.1 | 1.1 |
| Items that are or may subsequently be reclassified to the income statement | -29.9 | 106.0 | -55.9 | 80.0 |
| Total other comprehensive income after tax | -29.9 | 106.2 | -89.0 | 47.1 |
| Total comprehensive income | 113.6 | 78.9 | 1,093.0 | 1,058.3 |
| Attributable to: | ||||
| Equity holders of DFDS R/S | 113.8 | 79.2 | 1,093.0 | 1,058.5 |
| Non-controlling interests | -0.2 | -0.4 | 0 | -0.2 |
| Total comprehensive income | 113.6 | 78.9 | 1,093.0 | 1,058.3 |
The majority of amounts included in Other comprehensive income relates to Group companies which are taxed under tonnage tax schemes. There is no tax on this.
DFDS INTERIM REPORT Q1 2016
三
0
山
BALANCE SHEET ASSETS
| 2016 | 2015 | 2015 | |
|---|---|---|---|
| DKK m | Q1 | Q1 | Full year |
| Goodwill | 523.7 | 535.1 | 532.3 |
| Other non-current intangible assets | 27.1 | 31.5 | 29.3 |
| Software | 172.1 | 132.6 | 148.4 |
| Development projects in progress | 43.0 | 34.0 | 55.7 |
| Non-current intangible assets | 766.0 | 733.2 | 765.6 |
| Land and buildings | 117.5 | 130.3 | 124.8 |
| Terminals | 522.2 | 543.2 | 521.7 |
| Ships | 7,864.9 | 7,172.6 | 6,818.8 |
| Equipment, etc. | 493.9 | 476.9 | 494.4 |
| Assets under construction and prepayments | 122.5 | 107.5 | 222.7 |
| Non-current tangible assets | 9,121.0 | 8,430.4 | 8,182.4 |
| Investments in associates and joint ventures | 32.7 | 22.4 | 33.7 |
| Receivables | 25.0 | 24.7 | 25.0 |
| Securities | 18.4 | 18.9 | 18.4 |
| Deferred tax | 85.7 | 101.5 | 97.2 |
| Other non-current assets | 161.8 | 167.4 | 174.2 |
| Non-current assets | 10,048.7 | 9,331.1 | 9,122.3 |
| Inventories | 106.3 | 126.1 | 110.6 |
| Trade receivables | 1,709.3 | 1,855.1 | 1,593.2 |
| Receivables from associates and joint ventures | 54.4 | 52.7 | 55.1 |
| Other receivables | 160.0 | 158.1 | 192.2 |
| Prepayments | 78.3 | 116.1 | 86.0 |
| Derivative financial instruments | 1.6 | 16.5 | 4.5 |
| Cash | 943.3 | 425.6 | 1,422.6 |
| Current assets | 3,053.1 | 2,750.2 | 3,464.1 |
| Assets classified as held for sale | 59.1 | 139.3 | 59.2 |
| Total current assets | 3,112.2 | 2,889.5 | 3,523.3 |
| Assets | 13,160.9 | 12,220.6 | 12,645.7 |
EQUITY AND LIABILITIES
| 2016 | 2015 | 2015 | |
|---|---|---|---|
| DKK m | Q1 | Q1 | Full year |
| Share capital | 1,230.0 | 1,265.0 | 1,230.0 |
| Reserves | -293.6 | -231.2 | -247.0 |
| Retained earnings | 5,071.6 | 4,853.5 | 5,312.7 |
| Proposed dividends | 0 | 0 | 184.5 |
| Equity attributable to equity holders of DFDS R/S | 6,008.0 | 5,887.2 | 6,480.2 |
| Non-controlling interests | 48.8 | 50.6 | 49.5 |
| Equity | 6,056.8 | 5,937.9 | 6,529.7 |
| Interest bearing liabilities | 2,944.2 | 2,825.0 | 2,213.2 |
| Deferred tax | 160.2 | 144.3 | 156.9 |
| Pension and jubilee liabilities | 335.5 | 340.7 | 362.6 |
| Other provisions | 39.0 | 32.1 | 38.6 |
| Non-current liabilities | 3,478.9 | 3,342.0 | 2,771.2 |
| Interest bearing liabilities | 722.4 | 319.6 | 738.7 |
| Trade payables | 1,612.9 | 1,585.7 | 1,573.3 |
| Payables to associates and joint ventures | 22.0 | 23.4 | 30.8 |
| Other provisions | 62.2 | 38.8 | 78.9 |
| Corporation tax | 26.2 | 18.3 | 25.3 |
| Other payables | 630.3 | 463.8 | 475.5 |
| Derivative financial instruments | 282.6 | 226.5 | 303.5 |
| Deferred income | 266.7 | 264.6 | 111.7 |
| Current liabilities | 3,625.1 | 2,940.7 | 3,337.6 |
| Liabilities relating to assets classified as held for sale | 0 | 0 | 7.1 |
| Liabilities | 7,104.1 | 6,282.7 | 6,115.9 |
| Equity and liabilities | 13,160.9 | 12,220.6 | 12,645.7 |
DFDS INTERIM REPORT Q1 2016
三
DFDS GROUP STATEMENT OF CHANGES IN EQUITY (1 JANUARY - 31 MARCH 2016)
| DKK m | Share capital | RESERVES | Equity attributable to equity holders of DFDS R/S | Non-controlling interests | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
| Translation reserve | Hedging Reserve | Revaluation of securities | Treasury shares | Retained earnings | |||||
| Equity at 1 January 2016 | 1,230.0 | -166.5 | -37.0 | 0.1 | -43.5 | 5,312.7 | 184.5 | 6,480.2 | 49.5 |
| Comprehensive income for the period | |||||||||
| Profit for the period | 143.6 | 143.6 | -0.1 | ||||||
| Other comprehensive income | |||||||||
| Items that are or may subsequently be reclassified to the income statement: | |||||||||
| Value adjustment of hedging instruments for the period | 11.5 | 11.5 | 11.5 | ||||||
| Value adjustment transferred to operating costs | 9.4 | 9.4 | 9.4 | ||||||
| Value adjustment transferred to financial costs | -17.5 | -17.5 | -17.5 | ||||||
| Foreign exchange adjustments, subsidiaries | -33.1 | -33.1 | -0.1 | ||||||
| Items that are or may subsequently be reclassified to the income statement | 0 | -33.1 | 3.4 | 0 | 0 | 0 | 0 | -29.8 | -0.1 |
| Total other comprehensive income after tax | 0 | -33.1 | 3.4 | 0 | 0 | 0 | 0 | -29.8 | -0.1 |
| Total comprehensive income | 0 | -33.1 | 3.4 | 0 | 0 | 143.6 | 0 | 113.8 | -0.2 |
| Transactions with owners | |||||||||
| Acquisition, non-controlling interests | 0.3 | 0.3 | -0.5 | ||||||
| Declared dividends transferred to liabilities | -175.4 | -175.4 | -175.4 | ||||||
| Declared dividends, treasury shares | 9.1 | -9.1 | 0 | 0 | |||||
| Vested regarding share-based payments | 2.0 | 2.0 | 2.0 | ||||||
| Purchase of treasury shares | -38.3 | -437.3 | -475.6 | -475.6 | |||||
| Cash from sale of treasury shares related to exercise of share options | 21.4 | 41.7 | 63.1 | 63.1 | |||||
| Other adjustments | -0.4 | -0.4 | -0.4 | ||||||
| Transactions with owners Q1 2016 | 0 | 0 | 0 | 0 | -16.9 | -384.6 | -184.5 | -586.0 | -0.5 |
| Equity at 31 March 2016 | 1,230.0 | -199.7 | -33.7 | 0.1 | -60.4 | 5,071.6 | 0 | 6,008.0 | 48.8 |
The majority of amounts included in Other comprehensive income relates to Group companies which are taxed under tonnage tax schemes. There is no tax on this.
DFDS INTERIM REPORT Q1 2016
三
DFDS GROUP STATEMENT OF CHANGES IN EQUITY
(1 JANUARY - 31 MARCH 2015)
RESERVES
| DKK m | Share capital | Translation reserve | Hedging Reserve | Revaluation of securities | Treasury shares | Retained earnings | Proposed dividends | Equity attributable to equity holders of DFDS R/S | Non-controlling Interests | Total |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity at 1 January 2015 | 1,265.0 | -224.8 | -58.8 | 0.3 | -50.6 | 4,917.0 | 227.7 | 6,075.8 | 51.4 | 6,127.2 |
| Comprehensive income for the period | ||||||||||
| Profit for the period | -26.8 | -26.8 | -0.5 | -27.4 | ||||||
| Other comprehensive income | ||||||||||
| Items that will not subsequently be reclassified to the income statement: | ||||||||||
| Remeasurement of defined benefit pension obligations | 0.2 | 0.2 | 0.2 | |||||||
| Tax on items that will not be reclassified to the income statement | 0.1 | 0.1 | 0.1 | |||||||
| Items that will not subsequently be reclassified to the income statement | 0 | 0 | 0 | 0 | 0 | 0.2 | 0 | 0.2 | 0 | 0.2 |
| Items that are or may subsequently be reclassified to the income statement: | ||||||||||
| Value adjustment of hedging instruments for the period | 45.6 | 45.6 | 45.6 | |||||||
| Value adjustment transferred to operating costs | 9.6 | 9.6 | 9.6 | |||||||
| Value adjustment transferred to financial costs | -40.3 | -40.3 | -40.3 | |||||||
| Foreign exchange adjustments, subsidiaries | 91.3 | 91.3 | 0.2 | 91.4 | ||||||
| Unrealised value adjustment of securities | -0.2 | -0.2 | -0.2 | |||||||
| Items that are or may subsequently be reclassified to the income statement | 0 | 91.3 | 14.8 | -0.2 | 0 | 0 | 0 | 105.8 | 0.2 | 106.0 |
| Total other comprehensive income after tax | 0 | 91.3 | 14.8 | -0.2 | 0 | 0.2 | 0 | 106.1 | 0.2 | 106.2 |
| Total comprehensive income | 0 | 91.3 | 14.8 | -0.2 | 0 | -26.6 | 0 | 79.2 | -0.4 | 78.9 |
| Transactions with owners | ||||||||||
| Acquisition, non-controlling interests | 0.3 | 0.3 | -0.4 | -0.1 | ||||||
| Dividend paid | -218.1 | -218.1 | -218.1 | |||||||
| Dividend on treasury shares | 9.6 | -9.6 | 0 | 0 | ||||||
| Purchase of treasury shares | -13.4 | -76.6 | -89.9 | -89.9 | ||||||
| Vested regarding share-based payments | 1.9 | 1.9 | 1.9 | |||||||
| Cash from sale of treasury shares related to exercise of share options | 10.3 | 27.8 | 38.1 | 38.1 | ||||||
| Transactions with owners Q1 2015 | 0 | 0 | 0 | 0 | -3.1 | -37.0 | -227.7 | -267.8 | -0.4 | -268.2 |
| Equity at 31 March 2015 | 1,265.0 | -133.5 | -44.0 | 0.1 | -53.7 | 4,853.5 | 0 | 5,887.2 | 50.6 | 5,937.9 |
The majority of amounts included in Other comprehensive income relates to Group companies which are taxed under tonnage tax schemes. There is no tax on this.
DFDS INTERIM REPORT Q1 2016
三
0
DFDS GROUP - CASH FLOW STATEMENT
| DKK m | Note | 2016 Q1 | 2015 Q1 | 2015-2016 LTM | 2015 Full year |
|---|---|---|---|---|---|
| Operating profit before depreciation (EBITDR) and special items | 404.6 | 228.1 | 2,217.5 | 2,041.0 | |
| Cash flow effect from special items related to operating activities | -2.0 | -9.6 | -9.2 | -16.9 | |
| Adjustments for non-cash operating items, etc. | -1.9 | 7.7 | 46.2 | 55.8 | |
| Change in working capital | 84.3 | -1.1 | 284.1 | 198.7 | |
| Payment of pension liabilities and other provisions | -27.8 | -24.8 | -60.6 | -57.6 | |
| Cash flow from operating activities, gross | 457.2 | 200.2 | 2,478.0 | 2,221.0 | |
| Interest etc. received | 27.8 | 58.4 | 86.8 | 117.4 | |
| Interest etc. paid | -46.7 | -76.8 | -178.7 | -208.7 | |
| Taxes paid | -3.3 | -3.0 | -14.1 | -13.8 | |
| Cash flow from operating activities, net | 435.0 | 178.8 | 2,372.1 | 2,115.9 | |
| Investments in ships including dockings, rebuildings and ships under construction | -283.5 | -81.5 | -624.6 | -422.6 | |
| Sale of ships including net compensation for ship declared total loss | 0 | 0 | 108.3 | 108.3 | |
| Investments in other non-current tangible assets | -58.7 | -17.5 | -222.9 | -181.7 | |
| Sale of other non-current tangible assets | 9.5 | 10.5 | 9.7 | 10.8 | |
| Investments in non-current intangible assets | -16.6 | -6.9 | -68.7 | -59.1 | |
| Acquisition of enterprises, associates, joint ventures and activities | 4 | 0 | -9.1 | 2.2 | -6.8 |
| Capital contribution to joint ventures | 0 | 0 | -20.7 | -20.7 | |
| Dividend from associates and joint ventures | 0 | 0 | 1.3 | 1.3 | |
| Cash flow to/from investing activities, net | -349.3 | -104.4 | -815.4 | -570.5 | |
| Proceed from loans secured by mortgage in ships | 0 | 0 | 120.9 | 120.9 | |
| Repayment and instalments of loans secured by mortgage in ships | -132.1 | -85.9 | -223.1 | -176.9 | |
| Change in other non-current investments, net | 0 | 12.8 | -0.2 | 12.6 | |
| Change in other financial loans, net | -0.5 | -0.7 | -95.5 | -95.7 | |
| Payment of financial lease liabilities | -20.6 | -5.4 | -35.9 | -20.8 | |
| Change in operating credits | 2.2 | -14.1 | -14.0 | -30.2 | |
| Change in loan to associates and joint ventures | 0.7 | 1.3 | -1.7 | -1.2 | |
| Acquisition of non-controlling interests | -0.1 | -0.1 | -0.5 | -0.4 | |
| Acquisition of treasury shares | -475.6 | -89.9 | -786.6 | -401.0 | |
| Cash received from exercise of share options | 63.1 | 38.1 | 87.8 | 62.7 | |
| Government grants related to purchase of assets | 0 | 12.8 | 22.7 | 35.4 | |
| Dividends paid | 0 | -218.1 | -107.7 | -325.8 | |
| Cash flow to/from financing activities, net | -562.9 | -349.3 | -1,033.8 | -820.2 | |
| Net increase (decrease) in cash and cash equivalents | -477.2 | -274.9 | 522.8 | 725.1 | |
| Cash and cash equivalents at beginning of period | 1,422.6 | 694.5 | 425.6 | 694.5 | |
| Foreign exchange and value adjustments of cash and cash equivalents | -2.0 | 6.0 | -5.0 | 2.9 | |
| Cash and cash equivalents at end of period | 943.3 | 425.6 | 943.3 | 1,422.6 |
The cash flow statement cannot directly be derived from the income statement and the balance sheet.
19
DFDS INTERIM REPORT Q1 2016
三
NOTE 1 ACCOUNTING POLICIES
This interim report has been prepared in accordance with IRS 34 'Interim Financial Reporting' as adopted by the EU and additional Danish disclosure requirements for interim reports of listed companies. The interim report has been prepared using the same accounting policies as for the annual report for 2015. DFDS has adopted all new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2016. These IFRSs have not had any material impact on the Group's interim report.
NOTE 2 SEGMENT INFORMATION
| DKK m | Shipping Division | Logistics Division | Non-allocated | Total |
|---|---|---|---|---|
| Q1 2016 | ||||
| External revenue | 1,869.8 | 1,214.8 | 3.4 | 3,088.0 |
| Intragroup revenue | 150.3 | 4.8 | 82.6 | 237.8 |
| Total revenue | 2,020.2 | 1,219.7 | 86.0 | 3,325.8 |
| Operating profit (EBIT) before special items | 172.8 | 30.4 | -22.5 | 180.7 |
| Operating profit after special items (EBIT) | 172.8 | 30.8 | -22.5 | 181.0 |
| DKK m | Shipping Division | Logistics Division | Non-allocated | Total |
| --- | --- | --- | --- | --- |
| Q1 2015 | ||||
| External revenue | 1,754.0 | 1,168.9 | 3.0 | 2,925.8 |
| Intragroup revenue | 140.4 | 5.7 | 73.9 | 220.1 |
| Total revenue | 1,894.4 | 1,174.6 | 76.9 | 3,145.9 |
| Operating profit (EBIT) before special items | 18.1 | 27.9 | -18.8 | 27.2 |
| Operating profit after special items (EBIT) | 18.1 | 27.9 | -21.2 | 24.8 |
DFDS INTERIM REPORT Q1 2016
三
NOTE 3 SPECIAL ITEMS
| 2016 | 2015 | |
|---|---|---|
| DKK m | Q1 | Q1 |
| Adjustment when finalising Earn-out regarding the acquisition of Quayside Group | 0.4 | - |
| Costs related to designing and implementing one group wide finance service centre, including advisor costs, redundancies etc. | - | -2.4 |
| Special items, net | 0.4 | -2.4 |
NOTE 4 ACQUISITION OF ENTERPRISES AND SALE OF ACTIVITIES
2016
ACQUISITION
There has been no acquisitions or disposals in 2016.
2015
ACQUISITION
1 February 2015 the DFDS Group obtained control and 100% ownership of the logistics activities from Beltrin S.R.O. in Czech Republic. 2 March 2015 the DFDS Group acquired certain logistics activities, including employees, certain operating assets and lease agreements of operating equipment, from Volvo AB in Sweden. For further details of these acquisitions, refer to the annual report for 2015.
DFDS INTERIM REPORT Q1 2016
三
NOTE 5 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
The table discloses fair value and carrying amount of financial instruments measured at fair value in the balance sheet. Furthermore, categorisation of the valuation method according to the fair value hierarchy is stated.
Transfers between levels of the fair value hierarchy are considered to have occurred at the date of the event or change in circumstances that caused the transfer.
There were no transfers between the levels in the fair value hierarchy in Q1 2016.
TECHNIQUES FOR CALCULATING FAIR VALUES
DERIVATIVES
DFDS' usage of derivatives includes interest rate swaps, bunker swaps, forward exchange contracts and currency swaps. The fair values on interest rate swaps have been calculated by discounting the expected future interest payments. The discount rate for each interest payment is estimated on the basis of a swap interest curve, which is calculated based on a wide spread of market interest rates. The fair value on forward exchange contracts are based on interest curve calculations in DFDS' Treasury system. Calculations are based on a spread of market interest rates in the various currencies. Calculation on bunker swaps are based on quoted forward curve from various financial institutions.
Financial assets available for sale measured at level 1 are listed shares and is measured at the quoted prices.
Financial assets available for sale also comprise other shares and equity investments as well as other investments of DKK 18.4m (2015: DKK 18.4m). These are some minor unlisted enterprises and holdings. They are measured at cost reduced by write-downs, if any, and consequently, they are not included in the fair value hierarchy.
ASSETS HELD FOR SALE
Assets held for sale (non-recurring fair value measurement) comprise the former Norfolkline domicile in Scheveningen with a carrying amount of DKK 13.5m (2015: DKK 13.6m) and the ro-pax ship Vilnius Seaways with a carrying amount of DKK 45.6m (2015: DKK 48.3m). The fair value of the building is based on a valuation made by an independent real estate broker etc., and the fair value of the ship is based on valuations from independent ship brokers etc.
| DKK m | Q1 2016 | Q1 2015 | ||
|---|---|---|---|---|
| Fair value | Carrying amount | Fair value | Carrying amount | |
| Financial assets | ||||
| Financial assets available for sale (Level 1) | 0 | 0 | 0.5 | 0.5 |
| Derivatives (Level 2) | 1.6 | 1.6 | 16.5 | 16.5 |
| Assets held for sale (non-recurring fair value measurement) (Level 3) | 59.1 | 59.1 | 61.9 | 61.9 |
| Financial liabilities | ||||
| Derivatives (Level 2) | 282.6 | 282.6 | 226.5 | 226.5 |
DFDS INTERIM REPORT Q1 2016
三
NOTE 6 SUPPLEMENTARY FINANCIAL INFORMATION ON THE PARENT COMPANY
As a result of DFDS A/S' issuance of corporate bonds on Oslo Stock Exchange there is a requirement to provide certain supplementary financial information on the parent company. The following financial information has been prepared using the same accounting policies as for the annual report for 2015. However, DFDS has adopted all new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2016. These IFRSs have not had any material impact on the DFDS A/S' interim report.
As of 18 November 2015 New Channel Holding A/S (formerly a 100% subsidiary of DFDS A/S) and its 100% owned subsidiary New Channel Company A/S were both merged into DFDS A/S. Comparable figures are not restated.
The parent company's revenue increased by DKK 433.2m, equivalent to 29.5%. Operating profit before depreciation and special items (EBITDA) increased from DKK 38.0m to DKK 129.0m primarily due to the above merger.
The parent company's net interest bearing debt increased from DKK 3,703.2m at 31 December 2015 to DKK 4,426.7m at 31 March 2016, following the finance lease of two Channel ferries.
| 2016 | 2015 | 2015-2016 | 2015 | |
|---|---|---|---|---|
| DKK m | Q1 | Q1 | LTM | Full year |
| Income statement | ||||
| Revenue | 1,899.6 | 1,466.4 | 7,145.6 | 6,712.4 |
| Operating profit before depreciation (EBITDA) and special items | 252.7 | 110.0 | 1,198.4 | 1,055.7 |
| Operating profit (EBIT) before special items | 129.0 | 14.7 | 800.0 | 685.7 |
| Special items, net | 0 | 23.3 | -15.1 | 8.2 |
| Operating profit (EBIT) | 129.0 | 38.0 | 784.9 | 693.9 |
| Financial items, net | -11.9 | -2.0 | -190.4 | -180.5 |
| Profit before tax | 117.1 | 36.0 | 594.5 | 513.4 |
| Profit for the period | 117.5 | 34.2 | 589.5 | 506.2 |
| Assets | ||||
| Non-current intangible assets | 304.7 | 254.3 | 293.6 | |
| Non-current tangible assets | 5,284.1 | 3,314.0 | 4,290.7 | |
| Investments in affiliated companies, associates and joint ventures | 3,759.5 | 3,876.9 | 3,759.5 | |
| Other non-current assets | 18.4 | 728.3 | 18.3 | |
| Non-current assets | 9,366.7 | 8,173.5 | 8,362.1 | |
| Current receivables from affiliated companies | 684.8 | 1,591.7 | 724.8 | |
| Other current assets | 1,728.7 | 1,222.9 | 2,174.0 | |
| Current assets * | 2,466.6 | 2,814.6 | 2,898.8 | |
| Assets | 11,833.3 | 10,988.1 | 11,260.9 | |
| *) hereof cash and securities | 853.8 | 289.0 | 1,299.9 | |
| Equity and liabilities | ||||
| Equity | 3,861.8 | 4,371.7 | 4,322.2 | |
| Non-current liabilities | 2,951.7 | 2,673.9 | 2,217.7 | |
| Current liabilities to affiliated companies | 2,922.2 | 2,711.2 | 2,718.9 | |
| Other current liabilities | 2,097.6 | 1,231.3 | 2,002.1 | |
| Current liabilities | 5,019.8 | 3,942.5 | 4,721.0 | |
| Equity and liabilities | 11,833.3 | 10,988.1 | 11,260.9 | |
| Equity ratio, % | 32.6% | 39.8% | 38.4% | |
| Net interest bearing debt | 4,426.7 | 2,846.1 | 3,703.2 |
DFDS INTERIM REPORT Q1 2016
三
DEFINITIONS
Operating profit before depreciation (EBITDA)
Profit before depreciation and impairment on non-current assets
Operating profit (EBIT)
Profit after depreciation and impairment on non-current intangible and tangible assets
Operating profit margin
$$\frac{\text{Operating profit (EBIT) before special items}}{\text{Revenue}} \times 100$$
Net operating profit after taxes (NOPAT)
Operating profit (EBIT) minus payable tax for the period adjusted for the tax effect of net finance cost
Invested capital
Net working capital (non-interest bearing current assets minus non-interest bearing current liabilities) plus non-current intangible and tangible assets minus pension and jubilee liabilities and other provisions
Net Interest-bearing debt
Interest-bearing liabilities (excluding provision for pensions) minus interest-bearing assets minus cash and securities
LTM
Last twelve months
Return on invested capital (ROIC)
$$\frac{\text{Net operating profit after taxes (NOPAT)}}{\text{Rverage invested capital}} \times 100$$
Weighted average cost of capital (WACC)
The average cost of capital in percent for equity and debt weighted in relation to the capital structure
Free cash flow (FCFF)
Cash flow from operating activities excluding net interest received and paid minus cash flow from net investments
Return on equity
$$\frac{\text{Profit for the period excluding non-controlling interests}}{\text{Rverage equity excluding non-controlling interests}} \times 100$$
Equity ratio
$$\frac{\text{Equity at end of period}}{\text{Total assets}} \times 100$$
Earnings per share (EPS)
$$\frac{\text{Profit for the period excluding non-controlling interests}}{\text{Weighted average number of ordinary shares in circulation}} \times 100$$
P/E ratio
$$\frac{\text{Share price at the end of the period}}{\text{Earnings per share (EPS)}} \times 100$$
Dividend per share
$$\frac{\text{Dividend for the year}}{\text{Number of shares at the end of the period}} \times 100$$
Roundings may in general cause variances in sums and percentages in this report.