DFDS — Interim / Quarterly Report 2016

Feb 23, 2017

DFDS

Financial calendar 2017

Annual General Meeting
21 March 2017 at 14:00
Radisson Blu Scandinavia Hotel Copenhagen,
Rinager Boulevard 7G,
2300 Copenhagen South,
Denmark

Reporting 2017
Q1, 10 May
Q2, 17 August
Q3, 14 November

DFDS A/S
Sundkrogsgade 11
DK-2100 Copenhagen Ø
Tel. +45 3342 3342
Fax. +45 3342 3311
www.dfds.com
CVR 14 19 47 11

Addresses of DFDS' subsidiaries, locations and
offices are available from www.dfds.com

Review 2016

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Strong 2016

Pursuit of continuous improvement set to continue

All parts of DFDS' route network and key logistics activities contributed to increase the profit before tax by 52% to DKK 1,588m in 2016. An all-time high for DFDS.

The considerable increase of earnings in 2016 reflects DFDS' agenda of continuous improvement and benefits from volume growth driven by the moderate economic growth in most of our key markets in northern Europe.

In 2017 we expect to be able to continue to improve our financial performance as the outlook for Europe's economy is positive and our pursuit of improvement will continue.

The agenda for 2017 includes four targeted projects, focus on operational agility, decisions on fleet renewal and, not least, exploring digital opportunities.

We are especially excited about adding more digital solutions to our business model to make life easier for our customers and to gain operational efficiencies.

In parallel, we are renewing the fleet as two chartered freight new buildings are delivered this year and two freight new buildings are ordered for delivery in the beginning of 2019. Moreover, we are carefully analysing the options for renewing our passengers ships as well as other long-term investments.

To celebrate DFDS' 150th anniversary in 2016, the Board of Directors awarded 30 shares to each employee in recognition of their contribution to our growth and to strengthen the bond between DFDS and our employees. It was also a fitting tribute to the anniversary.

In line with the higher level of earnings, the distribution to shareholders is increasing through higher dividends and larger share buybacks. At the same time, we have the resources to continue to pursue synergies from acquisitions, to invest in our people and in our relations with all stakeholders, not least our customers.

Niels Smedegaard
President & CEO

Key figures 2016

Revenue up 8% to DKK 13.8bn
EBITDA up 27% to DKK 2.6bn
Return on invested capital increased to 17.8%
DKK 1.3bn distributed to shareholders

¹ Growth adjusted for currency changes and revenue from bunker surcharges
² Before special items

DFDS Group

Shipping Division

• Ferry services for freight and passengers
• Industry solutions
• Port terminal services

Logistics Division

• Door-door transport solutions
• Contract logistics

Revenue per division
DKK bn

EBITDA per division before special items
DKK bn

Distribution to shareholders
DKK bn

DFDS Summary 2016
DFDS Summary 2016

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DFDS' European Network

DFDS was established in 1866.

DFDS provides ferry shipping services and transport solutions in Europe.

Over 8,000 freight customers rely on our ferry and port terminal services as well as flexible transport and logistics solutions.

We also provide safe overnight and short sea ferry services to seven million passengers, many travelling in their own car.

We have more than 7,000 employees in 20 countries. DFDS is headquartered in Copenhagen and listed on Nasdaq Copenhagen.

• Port of call and Shipping sales office
• Logistics sales office
• Logistics operations
• Rail transport

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DFDS Summary 2016

Shipping Division

• Channel's result boosted by capacity expansion
• Baltic route network adapted to meet higher demand
• Continued high volume growth between the UK and the Continent
• Bunker cost savings benefited passenger activities

Head of division

Peder Gallert Pedersen

Share of DFDS Group revenue 2016

69%

Business areas

• North Sea
• Baltic Sea
• Channel
• Passenger
• France & Mediterranean

The Shipping Division's revenue increased by 8% adjusted for currency changes and excluding bunker surcharges while reported revenue increased by 4% to DKK 9,468m compared to 2015. EBIT before special items increased by 37% to DKK 1,613m.

The return on invested capital, RDIC, before special items increased to 19.6% in 2016 from 14.9% in 2015. Average invested capital increased by 4% to DKK 8,145m compared to 2015.

North sea

Revenue increased by 7% adjusted for currency changes and excluding bunker surcharges while reported revenue decreased by 1% to DKK 3,365m compared to 2015. EBIT before special items increased by 13% to DKK 515m.

Freight volumes increased by 5% while the overall freight rate level was somewhat above 2015. RU routes contributed to the volume growth with the highest growth achieved by the UK-Continent routes and the Sweden-Continent route that carried more automotive volumes.

Baltic Sea

Revenue increased by 13% excluding bunker surcharges while reported revenue increased by 8% to DKK 1,349m compared to 2015. EBIT before special items increased by 57% to DKK 363m.

Freight volumes increased by 15% and by 11% adjusted for the addition of a new route, Paldiski-Hanko, in October 2016. The overall freight rate level was somewhat higher than in 2015. Volumes were in Q1 2016 boosted by a dispute regarding road permits between Poland and Russia which led freight customers from road to sea. Passenger volumes increased by 7% and by 4% adjusted for the addition of Paldiski-Hanko.

Channel

Revenue increased by 33% adjusted for currency changes and excluding bunker surcharges while reported revenue increased by 23% to DKK 2,288m compared to 2015. EBIT before special items increased by 99% to DKK 394m.

Freight volumes increased by 36% and passenger volumes increased by 18% driven by 37% more tailings. The growth was entirely driven by the Dover-Calais route as the number of sailings on Dover-Dunkirk decreased slightly in 2016. The increase in the number of sailings on Dover-Calais was due to the deployment of three ferries since February 2016 while the route was serviced by only one ferry in parts of 2015.

France & Mediterranean

Revenue was flat adjusted for currency changes and excluding bunker surcharges while reported revenue decreased by 4% to DKK 481m compared to 2015. EBIT before special items increased by 119% to DKK 11m.

Freight volumes decreased by 2% and passenger volumes decreased by 3%. The lower volumes should be seen in context with the positive impact on volumes in 2015 from the disruptions on the Dover Strait in that year.

Passenger

Revenue was flat adjusted for currency changes and excluding bunker surcharges while reported revenue decreased by 2% to DKK 1,713m compared to 2015. EBIT before special items increased by 16% to DKK 253m.

Passenger volumes were on par with 2015 on both routes. On Copenhagen-Oslo, the passenger mix changed as the share of overseas passengers was increased to offset weaker demand from the Norwegian market. On Amsterdam-Newcastle, volume growth in the UK stalled following the depreciation of CBP in June 2016. Despite the limited growth in revenue, the overall result was improved by a considerable saving on bunker cost due to a lower oil price.

Revenue per business unit, 2016, DKK m

Shipping Division, DKK m	2016	2015	Δ	± %
Revenue	9,468	9,071	397	4.4%
EBITOR before special items	2,439	1,906	533	28.0%
Share of profit/loss of associates and joint ventures	-3	-11	9	n.a.
Profit/loss on disposal of non-current assets, net	4	1	3	n.a.
Depreciation and impairment	609	-716	-112	15.7%
EBIT before special items	1,613	1,180	433	36.7%
EBIT-margin before special items, %	17.0	13.0	4.0	n.a.
Special items, net	-13	-39	26	-66.5%
EBIT	1,600	1,141	459	40.2%
Invested capital, average	8,145	7,799	346	4.4%
RDIC before special items, %	19.6	14.9	4.7	n.a.
Lane metres, 1000	37,783	31,195	6,588	21.1%
Passengers, 1000	6,964	6,194	770	12.4%

DFDS Summary 2016

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9

More Asian tourists on Copenhagen-Oslo route

Scandinavia is currently experiencing a massive growth in Asian tourists. A fruitful collaboration between DFDS and a number of Scandinavian tour operators have helped open the gates to the rapidly growing market.

According to VisitDenmark, Asian nationals accounted for 600,000 overnight stays in Denmark in 2016, twice as many as in 2010. Chinese tourists in particular account for a large number of these overnight stays, and they are an interesting customer segment for DFDS' Copenhagen-Oslo route.

"The Chinese want to see the most classic attractions Copenhagen has to offer, such as The Little Mermaid, Nyhavn and Rmalianborg, to name a few. Most Chinese tourists visit Scandinavia in tour groups that take them on a round-trip through Denmark, Norway, Sweden and Finland.

This means DFDS has a very attractive product to offer, because the voyage is an easy and natural way of travelling between Denmark and Norway. At the same time, it is also a great product because it appeals both to experienced travellers and the tour groups," says Flemming Bruhn, Director of VisitDenmark.

The Copenhagen-Oslo cruise is popular among Asian tourists. From 2015 to 2016, the growth was 46% in tour groups from Thailand and 33% for tour groups from South Korea. The growth in group sales was 7% between 2015 and 2016, while the sale of individual online reservations has increased 51% over three years and there is still a large untapped potential in Asia.

Travellers from Asian countries love Nordic fish and shellfish, and they expect to find them served at the ship's evening buffet which has been upgraded in recent years to meet these expectations.

Ivan Tang and his wife are from Hong Kong and part of a larger group travelling around Scandinavia. "We have returned to experience the beautiful scenery up here, which is very different from what we have at home. Being a history teacher, I am also very keen on exploring and learning more about the rich history and culture that you find in the cities. There are so many beautiful castles, characteristic buildings and great museums, and on top of all that, we love the food. This time we have tried roast pork, herring and fish fillets with remoulade," says Ivan Tang.

Read more about this story and other Chinese tourists on DFDS' website: https://www.dfds.com/group/investors/reports-and-presentations/p4-report

DFDS Summary 2016

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Logistics Division

• EBITDA increased by 8%
• Growth in contract logistics key driver of improvement
• More focus on premium services
• Depreciation of GBP reduced result
• Two acquisitions completed in Q4

Head of division

Eddie Green

Share of DFDS Group revenue 2016

36%

Business areas

• Nordic
• Continent
• UK & Ireland

The Logistics Division's revenue increased by 2% adjusted for currency changes while reported revenue decreased by 2% to DKK 4,830m compared to 2015. EBIT before special items increased by 13% to DKK 161m.

The return on invested capital, ROC, before special items increased to 13.4% in 2016 from 11.9% in 2015. Average invested capital decreased by 2% to DKK 1,084m.

Nordic

Revenue decreased by 3% to DKK 1,613m compared to 2015 while EBIT before special items increased by 23% to DKK 53m.

The forwarding markets of the Scandinavia-UK corridors were in general challenging in 2016 with declining volumes and rates and higher imbalances. This was, however, offset by increasing activity in contract logistics.

Continent

Revenue increased by 2% to DKK 1,957m compared to 2015 and EBIT before special items increased by 43% to DKK 47m.

The higher result was driven by higher volumes and further optimisation of the forwarding activities in both the Netherlands-UK and Belgium-Scandinavia corridors. Volumes and earnings also increased in the Germany-UK corridor driven by automotive logistics contracts and higher container volumes.

Logistics Division, DKK m	2016	2015	A	A %
Revenue	4,930	5,034	-104	-2.1%
EBITDA before special items	252	234	18	7.8%
Profit/bins on disposal of non-current assets, net	4	4	0	2.4%
Depreciation and impairment	-94	-95	1	-0.7%
EBIT before special items	161	143	19	13.3%
EBIT margin before special items, %	3.3	2.8	0.4	n.a.
Special items, net	0	9	-8	n.a.
EBIT	162	151	11	7.0%
Invested capital, average	1,084	1,104	-21	-1.9%
ROC before special items, %	13.4	11.9	1.5	n.a.
Tons, 500	427.2	403.1	24.1	6.0%
Units, 500	522.3	453.9	68.4	15.1%

UK & Ireland

Revenue increased by 6% adjusted for currency changes while reported revenue decreased by 6% to DKK 1,494m compared to 2015. EBIT before special items decreased by DKK 5m or 8% to DKK 61m as the currency impact on EBIT was negative by DKK 10m due to the depreciation of GBP.

During the first half of the year the alignment into a country structure for the temperature-controlled seafood activities was completed. The contract logistics activities in mid-England expanded with two new cold store contracts and together with higher revenues from existing customers, earnings improved in 2016. The forwarding activities based in Belfast improved results in the first half-year but this was offset by more challenging markets in the second half-year.

DFDS Summary 2016

DFDS Summary 2016

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Brexit – business as usual or disruption

Both citizens and businesses across Europe are currently asking themselves, what does Brexit mean to me?

By a very few negative operator with many activities and 2,200 employees in the UK, DFOs is at the heart of the ongoing process of the UK's long in line in the EU and in South Africa. At changes in trade are passenger movements. First it is important to assist him and change into for example trade tariffs, but not take effect for at least four years and maybe longer. The same goes for changes to conditions for foreign nationals working in the UK and the EU.

IN DFOs, we share a great interest in the potential impact of Brexit, with the with our customers. One of those is the Mass-Emploi, a robust international of cometconing, personal and other individuals.

"PR meetings with the UK Management of the Mars Group, we discussed our expansion and expectations as regards the Brexit situation. Our 2014 understanding was that all for our have seen no or very limited effect of Brexit on trade. Neither do we believe the Brexit decline of trade at the near future. Recently, the Board of England and other their growth expectations upwards to 2% in 2017, and our experience is that when the economy grows then higher volumes also grow," says Exche Shakh's exclusive VCA President and Head of DFOs Logistics, Unilever.

"There are also still some uncertainties as to when a Brexit will actually occur. Although the British Prime Minister has set a downovert 3.1 March 2017, more like Gifana 30 and the reverse Brexit negotiations, it is not expected that the UK will reach the 2015s at least two years and regulations to the new certain Court case longer. If estimates are support the very draft of equity, everyone is benefitting from trade, and therefore we believe that an political growth and pattern will share an interest in protecting and stimulating trade," he says.

So far, the major change caused by the Brexit with has been a degradation of the British record. This has impacted some trade flows, but on a few 20 activities. The Brexit has been more noticeable on the consumer market as it has become more expensive for UK concern. However, it was just to contact all the other hand, has seen a rise in business or smoking issues.

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Growing with our stakeholders

Our business is to move and connect goods and people. In December 2016 we had been doing so for 150 years. Part of the secret of our company's longevity, is a deep-seated belief in taking good care of our customers and all other stakeholders, including the environment.

DFOS' business model revolves around the operation of ferry routes carrying freight and passengers and providing transport and logistics solutions to a diverse range of manufacturers. A large part of the solutions are carried out using the ferry route network.

With regard to the reporting of activities that fit into the umbrella of CSR (Corporate Social Responsibility), the key goals are to limit the impact of activities on the environment, keep people and goods safe, secure jobs and good working conditions, support social initiatives and be a diverse company as regards nationality, gender, race and age.

We also protect our company against fraud and seek to communicate and engage with our stakeholders in a trustworthy manner at all times.

This is all part of our efforts to contribute to the growth of businesses and people in the societies in which we operate.

In December 2016, we celebrated DFOS'150th anniversary. In recognition of the contribution made by DFOS' employees in recent years to our growth and as part of the celebration of the anniversary, the Board of Directors awarded 30 restricted shares to all employees. The total number of employees eligible for the award of shares exceeds 7,000.

In our CSR Report 2016, available from this link: http://www.dfobsgroup.com/about/responsibility/, we report on policies, processes and systems, actions and results and how they contribute to our company.

CSR Summary

	CSR Focus areas	Highlights 2016
Safety and security - ashore	DFOS' operations include a number of land-based activities, e.g. handling of trailers and containers in port terminals, ambient and temperature-controlled warehousing, haulage and offices	• 4,706 e-learning modules completed, almost twice as many as in 2015
• Accident frequency increased
Safety and security - at sea	DFOS is responsible for the safe operation of more than 40 ships. This is done by applying safety standards and by training and frequent drills on board the ships to continuously enhance ship crew/ability to protect people, goods and the ship against the consequences of incidents such as fire on board, collisions and other major incidents	• Near-miss reporting at satisfactory level
• Operational issues caused by migrants
People	In 2016, the average number of employees was 7,065 spread across 20 countries. The purpose of our HR activities is to support recruitment processes, employee and management development, retention, talent spotting, performance management, setting of remuneration and benefits, as well as organizational efficiency	• Improved Onboarding programme to receive new employees
• 30 shares awarded to each employee to celebrate 150th anniversary of DFOS
Community involvement	Each year, we transport millions of freight units and passengers through communities close to port terminals and other facilities operated by DFOS. In many communities, we are part of local life and take an active interest in community issues, including job creation and support of community initiatives	• 11 people benefited from joint foundation with Danish union, DHPHR, allowing them to work part-time due to health reasons
• High/Five project to offer jobs to former criminals celebrated 10th anniversary
Environment	95% of DFOS' emissions are due to ship operations. The most important environmental goal is therefore to reduce the energy consumption of our ships. We continue to be on track to achieve a 5% reduction in 2017 compared to 2012	• Scrubbers proven to be more efficient than required by regulations
• Ballast water convention ratified in September 2016 to come into force in September 2017
Customers	Around 80% of DFOS' annual revenue is generated by providing freight shipping services and transport and logistics solutions to around 8,000 customers, mainly freight forwarders and manufacturers. In 2016, we carried seven million passengers across the route network	• All time high customer satisfaction scores
• New app developed and introduced on Copenhagen Oslo to improve the customer experience
Procurement	Our suppliers must accept to conform to the DFOS Supplier Code of Conduct and all applicable international conventions and national legislation in the country, where production or services are performed	• Annual sourcing of goods and services for Drift Bln, equal to 5,000 purchase orders per month
• Makers management and supplier relationship management introduced

DFOS' CSR Report 2016 is available from this link: https://www.dfobs.com/group/about/responsibility

DFOS Summary 2016

DFOS Summary 2016

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18

Diversity on the agenda

Women make up 28% of DFDS' workforce, which is on a par with our industry. However, only 4% of all employees at senior management level are women.

DFDS aims to increase not only the total number of women in DFDS, but also focus on increasing the number of women in senior management positions in the coming years.

During 2016 we identified concrete actions to be implemented in 2017. One area to improve is our recruitment process. The process will be changed so shortlisted candidates are interviewed by people of both genders during the process. Moreover, we will review the communication style to ensure we communicate to both genders.

Undoing unconscious bias is where the true value lies to improve diversity in general. Therefore a training package will be introduced to all managers in DFDS to work with unconscious bias to create awareness and remove obstacles that prevent diversity.

A Women's Network will also be established with the objective of accelerating women's careers.

Diversity development

In our Board of Directors there is currently a female representation of 33%, excluding employee-elected members, in line with the recommended minimum ratio of the Danish Committee on Corporate Governance.

The Board continuously assesses the composition with regard to further increasing gender diversity.

DFDS' HR policy

We lead an international and competent workforce that consistently understands our customers' needs. A passionate workforce that thrives in an environment with inclusive behaviours. At all times we seek the right candidate for a position regardless of gender, age, religion, nationality or ethnicity.

Gender distribution

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The DFDS share and shareholders

The total return on the DFDS share was 23% in 2016

Share capital

DFDS has one class of shares. At the end of 2016, the share capital was DKK 1,200m comprising 60,000,000 shares, each with a nominal value of DKK 20. In accordance with DFDS' share buyback programme 1.5m shares were cancelled on 11 May 2016.

Stock exchange trading

The DFDS share is listed on Nasdaq Copenhagen where 23.6m DFDS shares were traded in 2016 equal to an annual turnover of DKK 6.9bn compared to DKK 3.7bn in 2015. The average number of trades per day was 1,030 compared to 548 in 2015 and the average daily turnover was DKK 26m compared to DKK 15m in 2015. The DFDS share is part of the Large Cap index.

Share price performance and yield

DFDS' share price rose by 21% to DKK 323 in 2016. The total market value at the end of the year was DKK 18.4bn, excluding treasury shares. By comparison, the Danish stock market's all share index decreased by 8% in 2016.

The total yield on the DFDS share was 6.9% in 2016 consisting of a combination of dividend yield and buyback of shares.

Distribution policy

DFDS' distribution policy is to pay dividend semi-annually. This facilitates a faster return of capital to shareholders and aligns dividend payments with DFDS' seasonal cash flow cycle that peaks during the third quarter, which is the high season for passenger travel.

In addition, excess capital, as determined by the leverage target, can be distributed through share buybacks and/or dividends.

Leverage is defined by the ratio of net interest-bearing debt (NIBD) to operating profit before depreciation (EBITOR). The targeted leverage is a NIBD/EBITOR-multiple of between 2.0 and 3.0. The targets can be exceeded in connection with large investments, including acquisitions, and other strategic events.

Dividend proposal

The Board of Directors proposes to the 2017 annual general meeting (AGM) a dividend of DKK 3.00 per share. In addition, the Board of Directors plan to distribute a further dividend of DKK 5.00 per share in August 2017.

Distribution to shareholders

At the AGM in March 2016, the Board of Directors received a mandate to purchase treasury shares totalling a maximum of 10% of the share capital.

In 2016, DFDS distributed a total of DKK 1,263m to shareholders. DKK 914m was distributed through share buybacks, including a buyback in February 2016 of DKK 400m structured as an auction. Dividends totalled DKK 349m of which DKK 175m was paid in April and DKK 174m was paid in August.

Two new share buybacks totalling

DKK 800m were announced on 7 February 2017.

Shareholders

At the end of 2016, DFDS had 15,010 registered shareholders who owned 96% of the share capital. International shareholders owned 31% (2015: 31%) of the total registered share capital.

The Lauritzen Foundation was the largest shareholder with a holding of 41% of the total share capital at the end of 2016.

Investor relations

Søren Brøndholt Nielsen, Director,
IR 6 Corporate Planning
Phone: +45 3342 3359
E-mail: soeren.broendholt@dfds.com

Ownership structure, end of 2016

	% of share Capital
Lauritzen Foundation	41.4
Institutional shareholders	41.4
Other registered shareholders	8.2
Treasury shares	4.9
Non-registered shareholders	4.1
Total	100.0

With reference to §29 in the Danish Securities Trading Act, the Lauritzen Foundation domiciled in Copenhagen, Denmark, has notified DFDS AFS that it holds more than 5% of the share capital and voting rights of the company.

Shareholder distribution

No. of shares	No. of shareholders	% of share Capital
1-50	4,756	0.2
51-500	7,808	2.4
501-5000	2,028	4.4
5001-50000	311	8.8
50001-	107	80.1
Total*	15,010	95.9

• Total of registered shareholders

Share related key figures

	2016	2015	2014	2013	2012
Share price, DKK
Price at year-end	322.6	267.0	118.2	87.4	51.1
Price high	359.9	282.0	118.2	91.1	77.2
Price low	211.1	121.0	80.8	52.4	51.6
Market value year-end, DKK m	18,435	15,840	7,177	5,559	3,706
No. of shares year-end, m	60.0	61.5	63.3	74.3	74.3
No. of circulating shares year-end, m	57.1	59.3	60.7	63.6	72.5
Distribution to shareholders, DKK m
Dividend paid per share, DKK	6.0	5.4	2.8	2.8	2.8
Total dividend paid ex. treasury shares	349	326	177	203	203
Buyback of shares	914	401	295	628	0
Total distribution to shareholders	1,263	727	472	691	203
FCFE yield, %	7.5	9.7	2.6	7.5	28.3
Total distribution yield, %	6.8	4.6	6.5	14.8	5.4
Cash payout ratio, %	91.4	47.0	253.8	197.2	19.1
Shareholder return
Share price change, %	20.8	125.9	35.2	71.0	-28.0
Dividend return, %	2.2	4.6	3.2	5.5	3.9
Total shareholder return, %	23.1	130.5	38.4	76.5	-24.1
Share valuation
Equity per share, DKK	116.3	105.4	100.0	98.5	95.0
Privatbook value, times	2.77	2.53	1.18	0.76	0.52

DFDS share price and trading volume, 2016

Share price performance relative to Copenhagen all share Index 2016

DFDS Summary 2016

DFDS Summary 2016

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Financial Review

The earnings level was raised considerably in 2016. Revenue increased to DKK 13.8bn and EBITDR increased by 27% to DKK 2.6bn. Financial gearing was unchanged after a positive free cash flow of DKK 1.5bn

Ril parts of DFDS' route network and key logistics activities contributed to increasing the profit before tax by 52% to DKK 1,588bn in 2016. Rn all-time high for DFDS.

The further improvement in earnings reflects an agenda of continuous improvement and benefits from moderate economic growth, and thereby volume growth, in most of DFDS' key markets in northern Europe.

Revenue increased by 8% in 2016 adjusted for currency changes and excluding revenue from bunker surcharges. Reported revenue increased by 2% to DKK 13.8bn.

The route network carried 21% more freight volumes and 12% more passengers in 2016. The volume growth was boosted by a considerable expansion of ferry capacity in the Channel business unit during the year. Excluding Channel, the route network carried 6% more freight volumes and 1% more passengers in 2016.

The revenue growth was in line with the latest growth expectation of 4%, excluding revenue from bunker surcharges.

Operating profit before depreciation (EBITDR) and special items increased by 27% to DKK 2,588bn. The result was thus in line with the latest expectation of an EBITDR before special items of DKK 2,525-2,625m.

The Shipping Division's EBITDR before special items increased by 28% to DKK 2,439m while the Logistics Division's EBITDR before special items increased by 8% to DKK 252m.

The Group's free cash flow was positive by DKK 1,455m after net investments of DKK 1,207m.

Financial leverage remained on level with 2015 as the increase in EBITDR balanced an increase in debt. The leverage ratio of net-interest-bearing debt (NIBD) to operating profit (EBITDR) before special items was 0.9 at year-end. The equity ratio was 51% at year-end 2016 compared to 52% in 2015.

The average number of employees increased by 7% to 7,065 in 2016. The increase was mainly due to an expansion of shipping capacity on the Channel and additional contract logistics activities.

DFDS group - EBITDR before special items per quarter

Revenue and Invested capital

Key figures

DKK million	2016
	SUR m-1	2016	2015	2014	2013	2012
Income statement
Revenue	1,855	13,790	13,473	12,779	12,097	11,700
Shipping Division	1,274	9,468	9,071	8,733	8,530	8,015
Logistics Division	663	4,930	5,034	4,625	4,183	4,259
Non-allocated items and eliminations	-82	-608	-631	-579	-616	-574
Operating profit before depreciation (EBITDR)
and special items	348	2,588	2,041	1,433	1,213	1,089
Shipping Division	328	2,439	1,906	1,309	1,148	992
Logistics Division	34	252	234	200	149	141
Non-allocated items	-14	-103	-99	-76	-84	-44
Profit on disposal of non-current assets, net	1	8	5	9	6	6
Operating profit (EBIT) before special items	221	1,644	1,199	695	503	418
Special items, net	-2	-13	-36	-70	-17	-124
Operating profit (EBIT)	219	1,631	1,164	626	486	295
Financial items, net	-6	-43	-121	-124	-136	-149
Profit before tax	214	1,588	1,043	502	350	146
Profit for the year	208	1,548	1,011	434	327	143
Profit for the year excluding non-controlling interest	208	1,548	1,011	435	325	144
Capital
Total assets	1,749	13,004	12,646	12,249	12,311	12,313
DFDS P2Y share of equity	893	6,636	6,480	6,076	6,263	6,882
Equity	899	6,685	6,530	6,127	6,318	6,936
Net-interest-bearing debt1	326	2,424	1,773	2,467	2,189	1,929
Invested capital, and of period1	1,238	9,205	8,363	8,633	8,555	8,896
Invested capital, average1	1,216	9,037	8,535	8,578	8,633	9,207
Cash flows
Cash flows from operating activities,
before financial items and after tax	358	2,662	2,207	1,398	1,501	905
Cash flows from investing activities	-162	-1,207	-571	-1,069	-943	-239
Requisition of enterprises and activities	-7	-51	-7	-85	-99	-5
Other investments, net	-156	-1,136	-564	-984	-844	-244
Free cash flow	196	1,455	1,637	329	558	1,144
Key operating and return ratios
Average number of employees		7,065	6,616	6,363	5,930	5,239
Number of ships		57	54	53	57	49
Revenue growth, %		2.4	5.4	5.6	3.4	0.6
EBITDR margin, %		18.8	15.1	11.2	10.0	9.3
Operating margin, %		11.9	8.9	5.4	4.2	3.6
Revenue/invested capital average, [times]		1.5	1.6	1.5	1.4	1.3
Return on invested capital (ROIC), %		17.7	13.3	7.2	5.7	3.4
ROIC before special items, %		17.8	13.7	8.0	5.8	4.5
Return on equity, %		23.4	16.1	7.1	4.9	2.1
Key capital and per share ratios
Equity ratio, %		51.4	51.6	50.0	51.3	56.3
Net-interest-bearing debt/EBITDR, times		0.9	0.9	1.7	1.8	1.8
Earnings per share (EPS), DKK		26.6	16.8	7.0	4.7	2.0
Dividend paid per share, DKK		6.0	5.4	2.8	2.8	2.8
Number of shares, and of period, 1000		60,000	61,500	63,250	74,200	74,200
Weighted average number of circulating shares, 1000		58,141	60,067	62,246	69,660	72,517
Share price, DKK		322.6	267.0	118.2	87.4	51.1
Market value, DKK m		18,405	15,840	7,177	5,559	3,706

1. Realest exchange rate for euro as of 31 December 2016: 7.4344
2. Re from 2013 the fair value of cross currency derivatives on bond loans forms part of Net-interest-bearing debt as these by nature are closely related to the interest-bearing debt. In previous years they formed part of non-interest-bearing items. The comparative figures have not been restated. The fair value of cross currency derivatives on bond loans in the comparative years are 2014: DKK-221m, 2013: DKK-138m, 2012: DKK 15m.

DFDS Summary 2016

DFDS Summary 2016

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Board of Directors

Bent Østergaard, Chair, 14,165 shares

• Date of birth: 5 October 1944
• Joined the Board: 1 April 2009
• Re-elected: 2010-2016
• Period of office ends: 21 March 2017
• Chair of Nomination and Remuneration Committee

Claus V. Hemmingsen, Deputy Chair, 2,453 shares

• Date of birth: 15 September 1962
• Joined the Board: 29 March 2012
• Re-elected: 2013-2016
• Period of office ends: 21 March 2017
• Member of Nomination and Remuneration Committee

Jens Otto Knudsen, Staff representative, 0 shares

• Date of birth: 8 August 1958
• Joined the Board: 13 April 2011
• Re-elected: 2014
• Period of office ends: 24 March 2018

Jens Otto Knudsen, Staff representative, 300 shares

• Date of birth: 8 August 1958
• Joined the Board: 23 April 2011
• Re-elected: 2014
• Period of office ends: 24 March 2018

Lars Skjold-Hansen, Staff representative, 300 shares

• Date of birth: 23 August 1965
• Joined the Board: 22 March 2013
• Re-elected: 2014
• Period of office ends: 24 March 2018

Pernille Erenbjerg, Board member, 0 shares

• Date of birth: 21 August 1967
• Joined the Board: 26 March 2014
• Re-elected: 2015-2016
• Period of office ends: 21 March 2017
• Chair of Audit Committee

JKL Lauritzen Melby, Board member, 4,735 shares

• Date of birth: 6 December 1958
• Joined the Board: 18 April 2001
• Re-elected: 2002-2016
• Period of office ends: 21 March 2017
• Member of Audit Committee

Kent Vildbæk, Staff representative, 0 shares

• Date of birth: 15 February 1964
• Joined the Board: 13 April 2011
• Re-elected: 2014
• Period of office ends: 24 March 2018

From left to right: Hans Smedegaard, Jørgen Jensen, Claus Hemmingsen, Jkk Lauritzen Melby, Jens Otto Knudsen, Kent Vildbæk, Torben Carlsen, Pernille Erenbjerg, Klaus Nylving, Lars Skjold-Hansen and Bent Østergaard.

OFOS Summary 2016