DFDS — Interim / Quarterly Report 2018

Feb 7, 2019

Q4 Interim and Full-year Report

GROWTH SET TO CONTINUE IN 2019

• Full impact of Mediterranean expansion
• Well prepared for Brexit, although visibility reduced
• Dividend proposed resumed
• 2019 outlook (IFRS 16): EBITDA of DKK 3.8-4.0bn (2018: DKK 3.6bn)

Highlights Q4

Q4 2018

• Revenue up 13% to DKK 4.0bn
• EBITDA up 20% to DKK 688m
• Growth in Europe and Turkey slowed during Q4

Outlook 2019 (IFRS 16)

• 10-12% revenue growth
• EBITDA-range of DKK 3.8-4.0bn (2018: DKK 3.6bn)
• Investments of DKK 2.5bn

"We reached a new all-time high result in 2018 and growth is set to continue in 2019 on the back of our recent expansion in the Mediterranean. Timely investments in new freight ferry capacity will support our customers' growth. We are well prepared to help them through any Brexit outcome," Niels Smedegaard, CEO

In Q4, revenue increased 13% to DKK 4.0bn mostly driven by the expansion of the route network in the Mediterranean. For the full-year 2018, revenue increased 10% to DKK 15.7bn.

EBITDA before special items for Q4 increased 20% to DKK 688m and increased 11% to DKK 3.0bn for the fullyear.

Freight ferry volumes developed through the year in tandem with European growth. Volumes increased in the first half-year and began to decline in the second half-year as visibility on Brexit and global trading was reduced, including lower trading between Europe and Turkey. For DFDS, volumes in northern Europe were 3% down in Q4 and flat for the year.

Passenger volumes were more resilient as they increased 2% for the full-year, although also with a declining trend in the second half-year.

Outlook 2019

The Group's revenue is expected to increase by 10-12% in 2019. Based on IFRS 16, the outlook range for EBITDA before special items is DKK 3,800-4,000m (2018 restated to IFRS 16: DKK 3,589m).

See full section on Outlook on page 9-10.

KEY FIGURES

							*IFRS 16
							restated
DKK m	2018	2017		2018	2017		2018
Before special items	Q4	Q4	∆ %	FY	FY	∆ %	FY
Revenue	3,955	3,497	13.1%	15,717	14,328	9.7%	15,717
EBITDA	688	574	19.7%	2,988	2,702	10.6%	3,589
EBIT	412	349	18.2%	1,909	1,782	7.1%	1,965
Profit before tax	423	346	22.4%	1,743	1,727	0.9%	1,743

*Pro forma unaudited. See full restatement in appendix.

7 February 2019. Conference call today at 10.00am CET

Access code: 86480065# Phone numbers to the call: DK +45 35445577, US +1 631 913 1422, UK +44 333 300 0804

Key figures

	2018	2017	2018	2017
DKK m	Q4		Q4 Full year Full year
Income statement
Revenue	3,955	3,497	15,717	14,328
• Ferry Division	2,807	2,381	11,117	9,892
• Logistics Division	1,325	1,318	5,324	5,160
• Non-allocated items	110	102	472	400
• Eliminations	-287	-304	-1,196	-1,124
Operating profit before depreciation (EBITDA) and special items	688	574	2,988	2,702
• Ferry Division	627	531	2,713	2,513
• Logistics Division	81	77	330	263
• Non-allocated items	-20	-34	-55	-74
Profit/loss on disposal of non-current
assets, net	-0	1	7	7
Operating profit (EBIT) before
special items	412	349	1,909	1,782
Special items, net	37	-33	-49	-41
Operating profit (EBIT)	449	316	1,859	1,741
Financial items, net	11	-3	-165	-55
Profit before tax	460	313	1,694	1,686
Profit for the period	471	296	1,637	1,618
Profit for the period excluding
non-controlling interest	465	296	1,630	1,617
Capital
Total assets	-	-	22,132	13,308
DFDS A/S' share of equity	-	-	9,175	6,565
Equity	-	-	9,255	6,614
Net interest-bearing debt	-	-	8,513	2,352
Invested capital, end of period	-	-	17,908	9,099
Invested capital, average	17,148	9,164	13,778	9,178

	2018	2017	2018	2017
DKK m	Q4		Q4 Full year Full year
Cash flows
Cash flows from operating activities, before financial items and after tax	358	682	2,516	2,666
Cash flows from investing activities	-455	-222	-4,802	-1,564
• Acquisition of enterprises and activities	-0	0	-3,635	0
• Other investments, net	-455	-222	-1,167	-1,564
Free cash flow	-97	460	-2,286	1,102
Key operating and return ratios
Average number of employees	-	-	7,791	7,235
Number of ships	-	-	70	64
Revenue growth (reported), %	13.1	4.4	9.7	3.9
EBITDA-margin, %	17.4	16.4	19.0	18.9
Operating margin, %	10.4	10.0	12.1	12.4
Revenue, invested capital average, (times)	-	-	1.1	1.6
Return on invested capital (ROIC), %	-	-	13.1	18.6
ROIC before special items, %	-	-	13.5	19.0
Return on equity, %	-	-	20.7	24.5
Key capital and per share ratios
Equity ratio, %	-	-	41.8	49.7
Net interest bearing debt/EBITDA, (times)	-	-	2.8	0.9
Earnings per share (EPS), DKK	8.13	5.40	28.99	29.08
Dividend paid per share, DKK	0.00	0.00	4.00	10.00
Number of shares, end of period, '000	-	-	58,632	57,000
Weighted average number of circulating shares, '000	-	-	56,204	55,594
Share price, DKK	-	-	262.2	331.3
Market value	-	-	14,990	18,106

Definitions on page 31.

Management review

Market overview

European growth in Q4 2018 continued to slow as visibility on the outcome and timing of Brexit remained low. Reduced global stability also led to a slowdown in activity among businesses and consumers.

Going into 2019, industrial production levels in Europe and Turkey are thus flattening.

The visibility on Europe's growth path, particularly in northern Europe, is currently reduced by the still unknown outcome of Brexit. A 'soft' Brexit is expected to support growth while a 'hard' Brexit is likely to reduce growth, although clarity on Brexit in itself will be a positive factor.

The total trading of goods between UK — a major market for DFDS — and continental Europe was on level with last year for the first two months of Q4.

Turkey's real GDP decreased more than expected in Q4 2018 as slowing demand in Europe lowered industrial production and imports continued to decline due to the depreciation of TRY.

The most significant change in average exchange rates in Q4 2018 vs Q4 2017 was a decrease in SEK/DKK of 4.8%. TRY/DKK appreciated 15% from the end of Q3 2018 to the end of Q4 2018.

Major events in Q4

Expanded customer cooperation boosts Mediterranean ferry business

On 21 December 2018, DFDS and Ekol Logistics agreed to significantly expand their cooperation regarding the transport of freight units on DFDS' ferry routes that connect Turkey with Italy.

Ekol Logistics provides logistics solutions for freight between mainly Turkey and Europe. The company is one of Turkey's leading logistics providers.

To accommodate a volume increase of around 30%, DFDS has entered into agreements to expand both port terminal and route capacity. In Istanbul, an agreement has been entered into with the Yalova port terminal for a 10-year period. DFDS will thus have departures from three port terminals in Istanbul going forward: Ambarli, Pendik and Yalova.

DFDS' first two freight ferry (ro-ro) new buildings, scheduled for delivery in 2019, will be delivered to Turkey for deployment between Turkey and Italy. In addition, route capacity will be increased through reallocations in DFDS' route network and external charters.

The new port terminal agreement in Yalova is accounting wise treated as a finance lease with a net present value of DKK 710m of which DKK 449m is a prepayment. The latter amount is therefore included in the financing cash flow in Q4. The prepayment allows the Yalova terminal to expand and improve the terminal.

Award of contract from UK Department for Transport

DFDS has entered into a contract with the UK Department for Transport to provide additional freight ferry capacity in the event of a no-deal Brexit for six months from 29 March 2019. The potential revenue of the contract is up to EUR 47m contingent on the amount of capacity that is called for.

DFDS has agreed to provide additional capacity on the following three freight ferry routes: Immingham-Cuxhaven, Rotterdam-Immingham and Rotterdam-Felixstowe.

The additional capacity will primarily be provided by extra departures and reallocation of capacity from DFDS' route network.

Major events after Q4

There are no major events to report after Q4.

IFRS 16 restatement of 2018

On 18 January, a pro forma and unaudited restatement of the first three quarters of 2018 was released. This Q4 report includes an appendix that adds Q4 2018 and full-year 2018 to the restatement.

The main impacts of the pro forma and unaudited restatement for 2018 are:

• EBITDA before special items is raised DKK 601m to DKK 3,589m
• Invested capital at the end of the year is raised DKK 2.6bn to DKK 20.4bn
• Financial leverage, as measured by NIBD/EBITDA, is raised 0.3 to 3.1.
• ROIC before special items is lowered 1.6 ppt to 11.9%.

Dividend resumed

The Board of Directors proposes to the 2019 annual general meeting (AGM) a dividend of DKK 4.00 per share.

5 key DFDS performance drivers in 2019

Growth from Mediterranean expansion

2019 will be the first full year of the expansion of our ferry route network to the Mediterranean, including a new, major customer agreement entered into at the end of 2018. To cope with higher volumes, the first two freight ferry new buildings delivered in 2019 will be deployed in the Mediterranean.

Well prepared for Brexit

DFDS' preparations for Brexit have been ongoing for many months under the stewardship of a Group Brexit Committee. Port terminals, warehousing and storage facilities are being expanded. We are ready to offer customs clearance services and have staffed up accordingly. In addition, a contract from the UK Department for Transport has been awarded for the provision of additional ferry capacity in case of a 'hard' Brexit.

Routes strengthened by new freight ferries

Three new freight ferries will be deployed in the route network during 2019. The ferries are around twice as large as the ones they will replace, bringing new capacity and higher operational efficiency as well as a lower environmental impact per transported unit.

Digital business projects to go live

A virtual freight forwarding business model for full-load solutions is expected to go live in Q2. In addition, a freight ferry booking app that allows smaller freight customers with or without a DFDS account to book and pay instantly was developed in Q4 2018. The full commercial launch of this app will take place during Q1.

These launches are part of the digital go-to-market strategy that builds on the investment in digital capabilities in recent years.

Improvement and efficiency projects

Continuous improvement is a key part of DFDS' strategy and targeted projects are expected to achieve a net profit run rate of around DKK 100m in 2019. Projects include yield management, procurement, boost projects for two Logistics activities and projects related to utilising artificial intelligence and smart data.

Financial performance

Revenue

The Group's revenue in Q4 was DKK 3,955m, an increase of 13.1% compared to 2017 mostly driven by Ferry Division as Logistics Division's revenue was lowered by a divestment and closure of activities compared to last year.

Ferry Division's revenue increased in Q4 by 17.9% to DKK 2,807m. The growth was due to the expansion of the route network in the Mediterranean through the acquisition of U. N. Ro-Ro with effect from 7 June 2018. This increased revenue by DKK 450m in Q4. Freight revenue in northern Europe was negatively impacted by lower volumes between Sweden and the Continent as a large logistics contract impacted volumes positively last year. Unaccompanied freight volumes were above last year while accompanied volumes, mostly on the Channel, were below last year. Passenger revenue was overall on level with last year. On a like-for-like basis Ferry Division's revenue was 3.6% below 2017.

Logistics Division's revenue in Q4 increased 0.5% to DKK 1,325m as higher revenue in Continent offset lower revenue in Nordic. Logistics Division's revenue was reduced by the closure of activities in Italy in Q1 2018. This impacted all three business units while the divestment of a reefer activity in Belfast in Q4 2017 reduced UK & Ireland's revenue. Compared to 2017, revenue was in addition negatively impacted by lower volumes between Sweden and the Continent as a large logistics contract impacted volumes positively in 2017. Both the closure of ac-

Revenue

DKK m	Q4 2018	Q4 2017	Change, %	Change
Ferry Division	2,807	2,381	17.9	426
Logistics Division	1,325	1,318	0.5	7
Non-allocated items	110	102	7.2	7
Eliminations	-287	-304	5.7	17
DFDS Group	3,955	3,497	13.1	458

tivities and the lower contract logistics volumes were offset by the acquisition of Special Cargo and a mix of volume growth for continuing activities. On a like-for-like basis Logistics Division's revenue was up 1.2%.

For the full-year, the Group's revenue increased by 9.7% to DKK 15,717m in 2018. Ferry Division's full-year revenue increased 12.4% to DKK 11,117m and Logistics Division's full-year revenue increased 3.2% to DKK 5,324m.

Operating profit before depreciation (EBITDA) and special items

In Q4, the Group's EBITDA increased 20% to DKK 688m in Q4 primarily driven by Ferry Division.

Ferry Division's EBITDA in Q4 increased 18% to DKK 627m driven by the expansion of the Mediterranean route network that added EBITDA of DKK 128m. Earnings were otherwise reduced by lower freight volumes impacting routes in mainly Channel and Baltic Sea. Passenger earnings were overall on level with last year, including continued weakness in the Norwegian market and a flattening of yields on the Channel.

Logistics Division's EBITDA in Q4 increased 5% to DKK 81m as continued improvement of earnings in UK & Ireland offset lower earnings in Nordic and Continent that were both negatively impacted by the lower activity between Sweden and Continent.

For the full-year, the Group's EBITDA increased 11% to DKK 2,988m following an increase in Ferry Division's EBITDA of 8% to DKK 2,713m and an increase in Logistics Division's EBITDA of 26% to DKK 330m. Non-allocated corporate costs decreased 25% to DKK -55m.

Depreciation and operating profit (EBIT) before special items

Depreciation in Q4 of DKK 273m increased 20% compared to 2017 mainly due to acquisitions. For the full-year, depreciation increased 16% to DKK 1,087m, likewise mainly due to acquisitions.

The Group's EBIT before special items for Q4 increased 18% to DKK 412m. For the full-year, the Group's EBIT before special items increased 7% to DKK 1,909m.

Special items and operating profit (EBIT) after special items

In Q4 2018, special items were a net income of DKK 37m, including reversal of a previous impairment on ships and an adjustment of an earn-out agreement.

For the full-year 2018, special items were a net cost of DKK 49m, including a cost of DKK 52m related to the acquisition and integration of U. N. Ro-Ro.

The Group's Q4 EBIT after special items increased 42% to DKK 449m and for the full-year, the Group's EBIT after special items increased 7% to DKK 1,859m.

Financial items

Total finance, net in Q4 was an income of DKK 11m as net currency adjustments were positive and increased by DKK 46m, of which DKK 34m was a currency gain on customer receivables in Turkey. The remaining cost increase compared to 2017, excluding currency adjustments, was mainly due to loan and interest costs for the acquisition financing of U. N. Ro-Ro.

For the full-year, the total net financing cost increased to DKK 165m from DKK 55m in 2017. The variance on currency adjustments was DKK -46m of which DKK -42m was a currency loss on customer receivables in Turkey. The remaining cost increase compared to 2017 was mainly due to loan and interest costs for the acquisition financing of U. N. Ro-Ro.

Operating profit before depreciation (EBITDA) & special items

2016 2017 2018

DKK m	Q4 2018	Q4 2017	Change, %	Change
Ferry Division	627	531	18.0	96
Logistics Division	81	77	5.1	4
Non-allocated items	-20	-34	40.3	14
DFDS Group	688	574	19.7	113
EBITDA-margin, %	17.4	16.4	5.9	1.0

Q1 Q2 Q3 Q4

Associates and joint ventures, profits on disposals and depreciation

DKK m	Q4 2018	Q4 2017	Change, %	Change
EBITDA before special items	688	574	19.7	113
Associates and joint ventures	-3	0	n.a.	-3
Profit on disposals	0	1	n.a.	-1
Depreciation and impairment	-273	-227	-20.2	-46
EBIT before special items	412	349	18.2	63

Financial items

0 100

DKK m	Q4 2018	Q4 2017	Change, %	Change
Interests, net	-32	-14	n.a.	-18
Foreign exchange gains/losses, net	50	4	n.a.	46
Other items, net	-6	7	n.a.	-13
Total finance, net	11	-3	n.a.	14

DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS

In Turkey a new invoicing model was implemented from the beginning of 2019 that offers incentives to pay in euros or cash. The currency exposure on customer receivables in TRY is thus expected to decline in 2019.

Profit before and after tax

The profit before tax for Q4 increased 47% to DKK 460m and increased 22% excluding special items. The profit after tax was DKK 471m.

For the full-year, the profit before tax of DKK 1,694m was on level with 2017 while the increase was 1% excluding special items. The profit after tax was DKK 1,637m following tax of DKK 57m.

Earnings per share

Earnings per share (EPS) for the quarter increased to DKK 8.13 from DKK 5.40 in Q4 2017, an increase of 51%.

Earnings per share (EPS) for the full-year of DKK 28.99 was on level with DKK 29.08 in 2017.

Cash flow and investments

The cash flow from operating activities was DKK 375m in Q4. This included a negative cash flow of DKK 272m from a change in working capital of which the majority was due to timing differences. The free cash flow (FCFF) of Q4 was DKK -97m following investments of DKK 455m related mainly to ferry new buildings.

In Q4, the cash flow from financing activities was negative by DKK 686m following a net repayment of loans of DKK 246m and prepayment on a finance lease liability of

DKK 449m. The net cash flow for Q4 2018 was negative by DKK 824m and at the end of Q4 cash amounted to DKK 761m.

For the full-year, the free cash flow (FCFF) was DKK -2,286m following investments of DKK 4,802m of which DKK 3,635m was used for acquisitions. The free cash flow (FCFF) was positive by DKK 1,349m excluding acquisitions.

The full-year cash flow from financing activities was positive by DKK 2,242m following a net inflow of loans of DKK 2,030 and proceeds of DKK 1,000m from a share capital issue. These funds were mainly used for the acquisition of U. N. Ro-Ro, prepayment on a finance lease liability of DKK 449m and distribution to shareholders of DKK 409m. The net cash flow for 2018 was negative by DKK 272m.

Capital structure

At the end of 2018 net-interest-bearing debt (NIBD) was DKK 8.6bn, an increase of DKK 6.2bn compared to year-end 2017 as the acquisition of U. N. Ro-Ro was primarily loan financed.

Financial leverage, as measured by the ratio of NIBD to EBITDA before special items, was a multiple of 2.8 compared to 0.9 at year-end 2017. On a pro forma basis, including U. N. Ro-Ro's EBITDA for the last twelve months, NIBD/EBITDA was 2.6.

The equity ratio was 42% at the end of 2018 down from 50% at year-end 2017.

Equity

Equity amounted to DKK 9,196m at the end of 2018, including minority interests of DKK 80m. This was an increase of 39% compared to equity at year-end 2017 as total comprehensive income for 2018 was DKK 1,886m while transactions with owners increased equity by DKK 696m, including proceeds of DKK 1,000m from an issue of new shares and distribution of DKK 409m through dividend and a share buyback.

Invested capital and ROIC

Invested capital almost doubled to DKK 17,908m at the end of 2018 compared to year-end 2017 mainly due to the acquisition of U. N. Ro-Ro. The average invested capital for the last twelve months increased 50% to DKK 13,778m.

For the last twelve months, the return on invested capital, ROIC, was 13.5% before special items compared to 19.0% for 2017. The decrease in ROIC was likewise mainly due to the acquisition of U. N. Ro-Ro.

Management shareholdings

Current holdings of DFDS shares for Niels Smedegaard, CEO, and Torben Carlsen, CFO, are available at https://www.dfds.com/group/about/management.

Outlook 2019

The outlook for 2019 builds on a combination of market growth prospects and five key DFDS performance drivers.

Market growth prospects

The visibility on Europe's growth path, particularly in northern Europe, is currently reduced by the still unknown outcome of Brexit. A 'soft' Brexit is expected to support growth while a 'hard' Brexit is likely to reduce growth.

The development in global trade and growth will also impact European growth prospects.

Trading between Europe and Turkey has become an important driver for DFDS. The Turkish economy is currently rebalancing following the extraordinary TRY depreciation in August 2018 and faces a period with limited domestic growth.

It is, however, expected that Turkish exports will grow through the year and contribute to a recovery of Turkey's overall growth. The level of growth in Turkish exports is contingent on continued demand in Europe for industrial and other goods that are manufactured or assembled in Turkey.

The current consensus estimates for European real GDP growth in 2019 are positive and averages around 1.5%. Turkey's real GDP is expected to be flat in 2019.

5 key DFDS performance drivers

As reported on page 5, there are five key performance drivers that are expected to positively impact the outlook (see page 5 for details on each driver):

• Growth from Mediterranean expansion
• Well prepared for Brexit
• Route network strengthened by new freight ferries
• Digital business projects to go live
• Improvement and efficiency projects

In combination, these drivers are expected to be the main contributors to growth in revenue and earnings in 2019.

Revenue outlook

The Group's revenue is expected to increase by around 10-12% driven by the full-year impact of the expansion of activities in Mediterranean as well as other new customer contracts and market growth.

EBITDA outlook

The EBITDA outlook is based on the new accounting standard on leases, IFRS 16.

DFDS will also in 2019 invest in further development of digital capabilities to enhance the customer experience and operational efficiency. This is expected to entail additional costs of up to DKK 100m.

The Group's EBITDA before special items is expected to be within a range of DKK 3,800-4,000m (2018 restated: DKK 3,589m). See the outlook table on page 10 for a divisional split.

Special items

Special items of DKK -20m are expected related to the award of shares to employees in connection with DFDS' 150th anniversary in 2016.

Investments

Investments of around DKK 2.5bn are expected in 2019:

• Freight ferry (ro-ro) new buildings: DKK 1,150m
• Combined freight and passenger ferry (ro-ro) new buildings: DKK 250m
• Scrubbers: DKK 250m
• Dockings and ferry upgrades: DKK 350m
• Port terminals and other equipment: DKK 250m
• Cargo carrying equipment and warehouses, mainly related to the Logistics Division: DKK 150m
• Other investments, including IT and digital: DKK 100m.

A total of eight new buildings are on order. In 2019, three freight ferries (ro-ro) are scheduled for deployment in March, June and November, respectively. Another three freight ferries are scheduled for delivery in 2020. Two combined freight and passenger ferries (ro-pax) are on order for delivery in Q1 and Q3 2021.

OUTLOOK 2019

		*IFRS 16
	Outlook	restated
DKK m	2019	2018	2018
Revenue growth	10-12%	15,717	15,717
EBITDA before special items	3,800-4,000	3,589	2,988
Per division:
Ferry Division	3,425-3,600	3,179	2,713
Logistics Division	425-450	431	330
Non-allocated items	-50	-21	-55
Depreciation change	20%	-1,624	-1,087
Special items	-20	-49	-49
Investments	-2,500	-4,802	-4,802

* Pro forma unaudited

A number of risks and uncertainties pertain to the outlook. The most important among these are possible major changes in the demand for ferry and logistics services. For DFDS, such demand is to a large extent linked to the level of economic activity in primarily Europe, especially northern Europe and in particular the UK, as well as adjacent regions, including Turkey. Demand can also be impacted by competitor actions.

The outlook can also be impacted by political changes, first and foremost within EU and Turkey. In that regard Brexit represents an important risk. Changes in economic variables, especially the oil price and exchange rates, can also impact earnings.

The future financial results may therefore differ significantly from expectations.

2018 Management review Ferry Logistics Reports Financials Appendix Contact Q4 Interim and Full -year Report / p 11 Expansion of port terminal capacity

Port terminal expansions and improvements are ongoing in Vlaardingen, Felixstowe and Ghent. The new terminal space in Vlaardingen will add 92,000 m ² equal to 650 extra trailer slots during 2019 and 2020.

Ferry Division

The division is organised in five business units:

• North Sea
• Baltic Sea
• Channel
• Mediterranean
• Passenger

Q4 market, activity and result trends

North Sea

Freight volumes in Q4 were down 4.5% on 2017 and down 2.3% adjusted for the closure of Rosyth-Zeebrugge in April. Volumes were 0.9% higher than last year excluding volumes between Sweden and Belgium that were considerably lower due to a boost in volumes from a large logistics contract in Q4 2017. A new contract began to ramp up in the quarter but is still on a lower level. Trading between UK and continental Europe thus recovered during the quarter from the slowdown in Q3. Trading between Sweden and UK was on level with Q4 2017.

EBIT in Q4 increased 5% to DKK 174m mainly due to lower operating costs.

Ferry Division

	2018			2018		2017			2017
					Full
DKK m	Q1	Q2	Q3	Q4	year	Q1	Q2	Q3		Q4 Full year
Revenue	2,301	2,729	3,280	2,807	11,117	2,154	2,523	2,835	2,381	9,892
EBITDA before special items	388	715	982	627	2,713	376	680	926	531	2,513
Share of profit/loss of associates and
joint ventures	3	1	-1	-1	2	6	0	-1	1	6
Profit/loss on disposal of non-current assets, net	1	0	0	0	1	0	0	0	0	1
Depreciation and impairment	-198	-228	-253	-227	-907	-202	-203	-198	-189	-792
EBIT before special items	194	488	729	398	1,809	180	478	726	343	1,727
EBIT margin before special items, %	8.4	17.9	22.2	14.2	16.3	8.4	18.9	25.6	14.4	17.5
Special items, net	-1	-45	23	40	17	0	9	0	-16	-7
EBIT	193	444	751	438	1,826	180	486	726	327	1,720
Invested capital, average	8,177	11,719	15,255	15,822	12,648	8,264	8,287	8,347	8,271	8,264
ROIC before special items, %	-	-	-	-	14.1	-	-	-	-	20.7
Lane metres, '000	9,536	10,046	10,211	10,283	40,077	9,395	9,588	9,654	9,781	38,418
Passengers, '000	862	1,409	2,163	1,003	5,439	756	1,428	2,144	1,020	5,349

Baltic Sea

Freight volumes in Q4 were 0.8% higher than in 2017 as continued growth on the southern routes offset lower volumes on the northern routes where capacity has been increased on competing routes in the region. Passenger volumes were up 13.4% with increases on all routes.

EBIT in Q4 decreased 9% to DKK 77m due to lower freight earnings, including costs for maintaining capacity following an engine breakdown, that were partly offset by higher earnings from passenger activities.

Channel

Freight volumes in Q4 decreased 3.9% compared to 2017 and by 3.6% excluding Newhaven-Dieppe that was included in the Channel business unit from Q2 2018. Total freight volumes in the Dover Strait market were down 0.3%. The market share of ferries was reduced in Q4 due partly to an increase in bunker surcharges, and partly to a continued tight supply of truck drivers as all freight units across the Channel are accompanied by a driver.

Passenger volumes were down 3.9% in Q4 compared to an increase of 1.4% in the total market. Onboard spending per pax continued to improve in the quarter.

EBIT in Q4 decreased 3% to DKK 71m mainly due to lower volumes for both freight and passengers.

Mediterranean

Freight volumes in Q4 increased with the expansion of the route network by 861k lane metres. This was lower than foreseen as volumes progressively slowed through the quarter. As expected, import volumes decreased in the quarter following the extraordinary depreciation of TRY in August while export volumes remained robust in the first half of the quarter where after they also decreased as industrial production in Turkey slowed due to declining demand from Europe. Volumes between southeastern Turkey and Italy remained low due to developments in adjacent countries, including Syria.

In addition, volumes between France and Turkey were negatively impacted by the 'yellow vest' protests that disrupted operations for more than a week in December. Volumes were overall 7% below last year (when DFDS did not own U. N. Ro-Ro).

EBIT in Q4 increased to DKK 82m from DKK 3m in 2017 following the acquisition of U. N. Ro-Ro as per 7 June 2018.

Passenger

The number of passengers in Q4 was 1.2% above last year as a good volume increase was achieved between UK and

Netherlands while the number of passengers decreased slightly in Scandinavia.

EBIT in Q4 improved by DKK 4m to DKK -25m due to the higher activity between UK and Netherlands as well as cost savings.

Non-allocated items

These items primarily include external charter activities.

EBIT in Q4 was more than halved from DKK 47m in 2017 to DKK 19m as Q4 2017 included an income from a settlement with a bunker provider. Moreover, charter activity was lower and costs related to an engine breakdown earlier in the year were also included in the quarter.

Ferry Division
		2018			2018		2017			2017
					Full
DKK m	Q1	Q2	Q3	Q4	year	Q1	Q2	Q3		Q4 Full year
North Sea
Revenue	967	964	897	907	3,734	926	928	897	949	3,699
EBIT before special items	150	186	140	174	651	151	179	174	166	670
Invested capital	3,967	3,808	3,754	3,431	3,805	4,263	4,136	4,115	4,064	4,164
ROIC before special items, %	-	-	-	-	16.7	-	-	-	-	15.8
Lane metres freight, '000	3,347	3,367	3,148	3,215	13,077	3,242	3,332	3,280	3,364	13,218
Baltic Sea
Revenue	343	392	410	364	1,509	341	382	388	355	1,465
EBIT before special items	70	104	111	77	361	74	105	116	84	379
Invested capital	1,218	1,234	1,103	1,471	1,237	1,218	1,181	1,182	1,159	1,201
ROIC before special items, %	-	-	-	-	29.1	-	-	-	-	31.5
Lane metres freight, '000	1,102	1,182	1,148	1,143	4,575	1,125	1,176	1,151	1,133	4,585
Passengers, '000	36	58	83	47	224	34	55	75	41	205
Channel
Revenue	573	687	895	647	2,803	530	659	874	620	2,683
EBIT before special items	25	80	221	71	397	-10	72	218	73	353
Invested capital	2,025	1,872	1,777	1,736	1,854	1,994	1,966	1,928	1,860	1,956
ROIC before special items, %	-	-	-	-	21.3	-	-	-	-	18.0
Lane metres freight, '000	4,896	4,995	4,906	4,866	19,663	4,828	4,872	5,035	5,061	19,796
Passengers, '000	556	992	1,659	644	3,850	485	1,000	1,648	670	3,803
Mediterranean
Revenue	31	170	443	481	1,124	25	27	22	29	103
EBIT before special items	3	29	66	82	180	0	5	1	3	9
Invested capital	122	7,204	7,239	8,192	4,574	138	129	127	115	99
ROIC before special items, %	-	-	-	-	3.9	-	-	-	-	9.3
Lane metres freight, '000	61	351	875	919	2,206	59	60	48	62	229
Passenger
Revenue	298	466	604	360	1,728	272	460	586	356	1,674
EBIT before special items	-80	57	164	-25	116	-59	88	184	-29	183
Invested capital	562	479	650	760	633	620	711	725	712	678
ROIC before special items, %	-	-	-	-	17.9	-	-	-	-	26.6
Lane metres freight, '000	130	151	134	140	556	141	147	140	160	589
Passengers, '000	270	361	421	312	1,365	237	374	421	309	1,341
Non-allocated items
Revenue	119	110	99	154	481	101	121	123	132	478
EBIT before special items	27	33	26	19	105	23	30	33	47	133

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.

Logistics Division

The division is organised in three business units:

• Nordic
• Continent
• UK & Ireland

Q4 market, activity and result trends

Nordic

The number of transported units in Q4 decreased 6.7% adjusted for the closure of the Italian rail activities. The volume decrease was mostly due to a large logistics contract that began in Q2 2017 and ceased in Q2 2018. A new and similar contract with a duration of more than two years has been entered into and started to ramp up through Q4. Volume growth was otherwise slightly positive mainly driven by Norwegian shipping volumes and the Baltic markets, including project volumes, while volumes for Sweden and Denmark were on level with last year.

EBIT decreased 4% to DKK 21m due to the start-up of a new large logistics contracts and rising carrier costs for the trailer operations. This was partly offset by an improved result for the Norwegian sideport shipping routes and the cross-docking terminal in Gothenburg.

Logistics Division

	2018				2018		2017		2017
DKK m	Q1	Q2	Q3	Q4	Full year	Q1	Q2	Q3		Q4 Full year
Revenue	1,385	1,341	1,272	1,325	5,324	1,235	1,346	1,261	1,318	5,160
EBITDA before special items	81	91	78	81	330	48	73	66	77	263
Profit/loss on disposal of non-current assets, net	1	2	1	0	5	3	1	0	1	5
Depreciation and impairment	-34	-33	-33	-32	-132	-25	-24	-25	-28	-102
EBIT before special items	48	60	47	49	204	26	49	41	50	166
EBIT margin before special items, %	3.5	4.5	3.7	3.7	3.8	2.1	3.6	3.4	3.8	3.2
Special items, net	-17	0	0	5	-11	0	0	0	-13	-13
EBIT	31	60	47	54	193	26	49	41	37	153
Invested capital, average	1,186	1,223	1,192	1,232	1,204	1,123	1,127	1,139	1,129	1,128
ROIC before special items, %	-	-	-	-	14.2	-	-	-	-	13.1
Tons, '000	97.7	102.8	103.5	113.2	417.3	99.0	100.0	94.1	107.3	400.4
Units, '000	145.5	146.7	133.1	141.7	567.0	131.9	140.9	136.1	139.6	548.5

Continent

The number of transported units in Q4 decreased 1.7% adjusted for the acquisition of Special Cargo on 3 January 2018 (formerly Alphatrans Group) and the closure of Italy. Volumes in Belgium were as in Nordic reduced compared to last year when a large logistics contract was fully ramped up while a new contract was started in Q4 this year. The logistics contract is operated in cooperation between Continent and Nordic business units. Accompanied volumes between Belgium and UK were also lower. Volume growth was otherwise positive, especially for the container traffics between Ireland and Netherlands.

EBIT decreased 61% to DKK 8m mainly due to lower margins for the Belgian activities that were negatively impacted by traffic imbalances linked to the start of the new logistics contract mentioned above and delayed recovery of rising carrier costs.

UK & Ireland

The number of transported units in Q4 decreased 4.0% adjusted for the divested Belfast reefer activity and the closure of the Italian rail activities. The lower volume was mostly due to an ongoing project for one location in the cold chain operation to improve the earnings level which resulted in changes in the customer portfolio. On the other

hand, the addition of a new large logistics contract added volumes towards the end of Q4. The level of activity slowed in the UK and Belfast trailer operations. Aquaculture volumes in Scotland were stable in the quarter.

EBIT increased 168% to DKK 19m as most activities improved performance, particularly the cold chain activities in England, re the project mentioned above, and margin improvement for the continuing activities in Belfast. Moreover, the result was positively impacted by the closure of lossmaking activities earlier in the year and in Q4 2017.

Logistics Division
		2018			2018		2017			2017
					Full
DKK m	Q1	Q2	Q3	Q4	year	Q1	Q2	Q3		Q4 Full year
Nordic
Revenue	517	485	413	451	1,866	429	486	461	522	1,898
EBIT before special items	26	26	15	21	88	9	17	13	22	62
Invested capital	362	306	299	373	342	332	360	411	371	359
ROIC before special items, %	-	-	-	-	23.1	-	-	-	-	16.8
Units, '000 *	37.6	34.7	29.6	32.7	134.6	31.0	35.8	32.9	35.4	135.2
Tons, '000	97.7	102.8	103.5	113.2	417.3	99.0	100.0	94.1	107.3	400.4
Continent
Revenue	626	622	598	612	2,458	479	518	500	538	2,035
EBIT before special items	18	22	18	8	67	9	17	18	21	65
Invested capital	513	521	528	552	496	346	340	344	368	351
ROIC before special items, %	-	-	-	-	10.9	-	-	-	-	15.3
Units, '000	66.8	68.1	62.6	64.4	261.8	54.2	57.1	56.1	61.3	228.7
UK & Ireland
Revenue	274	284	292	304	1,154	359	378	339	312	1,388
EBIT before special items	4	13	14	19	49	9	14	10	7	40
Invested capital	387	357	373	338	365	445	429	394	370	418
ROIC before special items, %	-	-	-	-	10.3	-	-	-	-	8.2
Units, '000	41.2	43.9	41.0	44.5	170.5	46.7	48.0	47.1	42.9	184.6
Non-allocated items
Revenue	74	57	58	54	244	53	54	55	53	216
EBIT before special items	0	0	0	0	0	0	0	0	0	0

* Excluding volumes related to automotive Logistics contract.

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.

Management statement

The Board of Directors and the Executive Board have reviewed and approved the interim report of DFDS A/S for the period 1 January – 31 December 2018.

The interim report, which hasnot been audited or reviewed by the Company's auditor, has been prepared in accordance with IAS 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 December 2018 and of the results of the DFDS Group's operations and cash flow for the period 1 January – 31 December 2018.

Further, in our opinion, the Management review p. 1-16 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, 7 February 2019

DFDS Group Income statement

	2018	2017	2018	2017
DKK m Note	Q4	Q4	Full year	Full year
Revenue 3	3,955.2	3,497.4	15,717.1	14,327.8
Costs
Ship operation and maintenance	-997.1	-753.9	-3,583.3	-2,888.9
Freight handling	-583.1	-556.6	-2,447.1	-2,262.0
Transport solutions	-808.8	-777.2	-3,191.0	-3,128.4
Employee costs	-719.4	-675.0	-2,796.4	-2,660.7
Costs of sales and administration	-159.3	-160.3	-711.6	-685.4
Operating profit before depreciation (EBITDA) and special items	687.6	574.3	2,987.8	2,702.3
Share of profit/loss of associates and joint ventures	-2.6	0.4	0.8	5.6
Profit/loss on disposal of non-current assets, net	-0.0	1.2	6.6	7.0
Depreciation, ships	-195.5	-184.9	-790.0	-745.3
Depreciation, other non-current assets	-77.1	-51.4	-296.0	-197.3
Impairment losses, other non-current assets	-0.1	9.3	-0.6	9.3
Operating profit (EBIT) before special items	412.2	348.9	1,908.6	1,781.7
Special items, net 4	37.0	-33.1	-49.4	-40.7
Operating profit (EBIT)	449.2	315.8	1,859.2	1,741.0
Financial income	50.4	7.8	5.6	27.0
Financial costs	-39.4	-11.0	-170.9	-81.7
Profit before tax	460.2	312.6	1,693.9	1,686.3
Tax on profit	11.0	-16.6	-56.7	-68.3
Profit for the period	471.2	296.0	1,637.2	1,618.0
Attributable to:
Equity holders of DFDS A/S	464.8	295.5	1,629.5	1,616.7
Non-controlling interests	6.5	0.4	7.7	1.3
Profit for the period	471.2	296.0	1,637.2	1,618.0
Earnings per share
Basic earnings per share (EPS) of DKK 20, DKK	8.13	5.40	28.99	29.08
Diluted earnings per share (EPS-D) of DKK 20, DKK	8.11	5.36	28.87	28.83

DFDS Group – statement of Comprehensive income

	2018	2017	2018	2017
DKK m	Q4	Q4	Full year	Full year
Profit for the period	471.2	296.0	1,637.2	1,618.0
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations	121.7	57.9	121.7	57.9
Tax on items that will not be reclassified to the Income statement	0.0	-0.7	0.0	0.0
Items that will not be reclassified subsequently to the Income statement	121.7	57.2	121.7	57.9
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period	30.3	-67.6	321.2	-132.7
Value adjustment transferred to operating costs	-2.2	-1.3	-7.1	-9.6
Value adjustment transferred to financial costs	29.1	54.5	-47.8	29.1
Value adjustment transferred to non-current tangible assets	-18.5	2.1	-21.2	6.2
Tax on items that may be reclassified to the Income statement	45.0	-	-0.7	1.1
Foreign exchange adjustments, subsidiaries	-17.8	-36.1	-58.5	-60.1
Items that are or may be reclassified subsequently to the Income statement	65.7	-48.5	185.9	-166.1
Total other comprehensive income after tax	187.4	8.7	307.6	-108.2
Total comprehensive income	658.6	304.6	1,944.8	1,509.8
Attributable to:
Equity holders of DFDS A/S	652.2	304.2	1,937.0	1,508.5
Non-controlling interests	6.5	0.4	7.8	1.3
Total comprehensive income	658.6	304.6	1,944.8	1,509.8

DFDS GROUP - Balance Sheet Assets

	2018	2017
DKK m	Full year	Full year
Goodwill	3,337.0	554.5
Other non-current intangible assets	1,205.2	29.4
Software	244.6	235.3
Development projects in progress	1.6	14.8
Non-current intangible assets	4,788.4	834.0
Land and buildings	162.7	148.8
Terminals	1,170.4	480.4
Ships	9,731.1	7,505.4
Equipment, etc.	1,004.2	615.7
Assets under construction and prepayments	1,021.0	307.8
Non-current tangible assets	13,089.4	9,058.0
Investments in associates and joint ventures and securities	43.3	42.8
Receivables	137.6	135.7
Deferred tax	70.0	63.6
Derivative financial instruments	175.0	0.0
Other non-current assets	425.9	242.1
Non-current assets	18,303.7	10,134.1
Inventories	200.5	155.8
Trade receivables	2,077.0	1,687.5
Receivables from associates and joint ventures	85.6	74.1
Other receivables	296.5	129.2
Prepaid costs	350.9	90.7
Derivative financial instruments	56.6	3.8
Cash	760.7	1,033.2
Current assets	3,827.8	3,174.3
Assets	22,131.5	13,308.4

Equity and liabilities

	2018	2017
DKK m	Full year	Full year
Share capital	1,172.6	1,140.0
Reserves	-250.9	-455.0
Retained earnings	8,018.6	5,651.6
Proposed dividends	234.5	228.0
Equity attributable to equity holders of DFDS A/S	9,174.8	6,564.6
Non-controlling interests	79.7	49.0
Equity	9,254.5	6,613.7
Interest-bearing liabilities	8,388.9	2,931.6
Deferred tax	210.7	197.1
Pension and jubilee liabilities	263.5	378.6
Other provisions	17.0	42.4
Derivative financial instruments	74.3	94.8
Non-current liabilities	8,954.3	3,644.5
Interest-bearing liabilities	868.5	343.9
Trade payables	2,296.4	1,847.0
Payables to associates and joint ventures	23.7	40.1
Other provisions	49.9	35.1
Corporation tax	23.4	23.8
Other payables	469.8	489.6
Derivative financial instruments	20.4	111.3
Prepayments from customers	170.6	159.3
Current liabilities	3,922.7	3,050.2
Liabilities	12,877.1	6,694.7
Equity and liabilities	22,131.5	13,308.4

DFDS GROUP - Statement of changes in equity 1 January - 31 December 2018

			Reserves
				Revaluation				Equity attributable to equity	Non
DKK m	Share	Translation	Hedging	of	Treasury	Retained	Proposed	holders	controlling
	capital	reserve	Reserve	securities	shares	earnings	dividends	of DFDS A/S	interests	Total
Equity at 1 January 2018	1,140.0	-339.7	-68.4	0.1	-47.0	5,651.6	228.0	6,564.6	49.0	6,613.7
Change in accounting policies* Restated equity at 1 January 2018	1,140.0	-339.7	-68.4	-0.1 0	-47.0	0.1 5,651.7	228.0	0 6,564.6	49.0	0 6,613.7
Comprehensive income for the period
Profit for the period						1,629.5		1,629.5	7.7	1,637.2
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations						121.7		121.7		121.7
Items that will not be reclassified subsequently to the Income statement	0	0	0	0	0	121.7	0	121.7	0	121.7
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments for the period			321.2					321.2		321.2
Value adjustment transferred to operating costs			-7.1					-7.1		-7.1
Value adjustment transferred to financial costs			-47.8					-47.8		-47.8
Value adjustment transferred to non-current tangible assets			-21.2					-21.2		-21.2
Tax on items that will be reclassified to the Income statement						-0.7		-0.7		-0.7
Foreign exchange adjustments, subsidiaries		-58.7						-58.7	0.2	-58.5
Items that are or may be reclassified subsequently to the Income statement	0	-58.7	245.1	0	0	-0.7	0	185.8	0.2	185.9
Total other comprehensive income after tax	0	-58.7	245.1	0	0	121.0	0	307.5	0.2	307.6
Total comprehensive income	0	-58.7	245.1	0	0	1,750.5	0	1,937.0	7.8	1,944.8
Transactions with owners
Acquisition, non-controlling interests						1.2		1.2	6.2	7.3
Addition related to acquisition								0	16.7	16.7
Dividend paid							-218.9	-218.9		-218.9
Dividend on treasury shares						9.1	-9.1	0		0
Proposed dividend at year-end						-234.5	234.5	0		0
Vested share-based payments						25.1		25.1		25.1
Purchase of treasury shares					-11.0	-179.1		-190.2		-190.2
Cash from sale of treasury shares related to exercise of share options					8.8	50.5		59.2		59.2
Reduction of share capital by cancellation of treasury shares	-20.0				20.0			0		0
Increase of capital	52.6					947.4		1,000.0		1,000.0
Other adjustments						-3.2		-3.2		-3.2
Transactions with owners 2018	32.6	0	0	0	17.7	616.3	6.5	673.2	22.8	696.0
Equity at 31 December 2018	1,172.6	-398.4	176.8	0	-29.3	8,018.6	234.5	9,174.8	79.7	9,254.5

* According to the new IFRS 9 changes in Fair value of securities are recognised via the Income Statement.

Due to immaterial effects from implementing IFRS 9 and IFRS 15, the 1 January 2018 Equity has not been restated except for DKK 0.1m which has been reclassified within the Equity (see above).

DFDS GROUP - Statement of changes in equity 1 January - 31 December 2017

			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 A/S	Non controlling interests	Total
Equity at 1 January 2017	1,200.0	-279.6	38.8	0.1	-58.9	5,556.1	180.0	6,636.4	48.2	6,684.6
Comprehensive income for the period
Profit for the period						1,616.7		1,616.7	1.3	1,618.0
Other comprehensive income
Items that will not subsequently be reclassified to the income statement:
Remeasurement of defined benefit pension obligations						57.9		57.9		57.9
Tax on items that will not be reclassified to the Income statement						1.1		1.1		1.1
Items that will not subsequently be reclassified to the Income statement	0.0	0.0	0.0	0.0	0.0	59.0	0.0	59.0	0.0	59.0
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments for the period			-132.7					-132.7		-132.7
Value adjustment transferred to operating costs			-9.6					-9.6		-9.6
Value adjustment transferred to financial costs			29.1					29.1		29.1
Value adjustment transferred to non-current tangible assets			6.2					6.2		6.2
Foreign exchange adjustments, subsidiaries		-60.2						-60.2	0.1	-60.1
Items that are or may be reclassified subsequently to the Income statement	0.0	-60.2	-107.1	0.0	0.0	0.0	0.0	-167.3	0.0	-167.2
Total other comprehensive income after tax	0.0	-60.2	-107.1	0.0	0.0	59.0	0.0	-108.2	0.0	-108.2
Total comprehensive income	0.0	-60.2	-107.1	0.0	0.0	1,675.8	0.0	1,508.5	1.3	1,509.8
Transactions with owners
Acquisition, non-controlling interests						0.4		0.4	-0.5	-0.2
Dividend paid							-167.9	-167.9		-167.9
Dividend on treasury shares						12.1	-12.1	0.0		0.0
Proposed extraordinary dividend						-399.0	399.0	0.0		0.0
Extraordinary dividend paid							-387.5	-387.5		-387.5
Extraordinary dividend on treasury shares						11.5	-11.5	0.0		0.0
Proposed dividend at year-end						-228.0	228.0	0.0		0.0
Vested share-based payments						25.9		25.9		25.9
Purchase of treasury shares					-60.6	-1,045.2		-1,105.8		-1,105.8
Cash from sale of treasury shares related to exercise of share options					12.6	42.7		55.3		55.3
Reduction of share capital by cancellation of treasury shares	-60.0				60.0			0.0		0.0
Other adjustments						-0.6		-0.6		-0.6
Transactions with owners 2017	-60.0	0.0	0.0	0.0	12.0	-1,580.2	48.0	-1,580.2	-0.5	-1,580.7
Equity at 31 December 2017	1,140.0	-339.7	-68.4	0.1	-47.0	5,651.6	228.0	6,564.6	49.0	6,613.7

DFDS Group – Statement of cash flows

	2018	2017	2018	2017
DKK m	Q4	Q4	Full year	Full year
Operating profit before depreciation (EBITDA) and special items	687.6	574.3	2,987.8	2,702.3
Cash flow effect from special items related to operating activities	-28.8	0.0	-99.5	0.0
Adjustments for non-cash operating items, etc.	19.7	9.1	20.1	18.8
Change in working capital	-291.6	132.9	-282.8	42.5
Payment of pension liabilities and other provisions	-11.6	-13.0	-40.7	-63.7
Cash flow from operating activities, gross	375.4	703.3	2,584.9	2,699.9
Interest received, etc.	21.7	27.3	145.9	118.7
Interest paid, etc.	-62.2	-30.1	-373.4	-162.8
Taxes paid	-17.7	-21.5	-68.8	-33.5
Cash flow from operating activities, net	317.2	678.9	2,288.6	2,622.2
Investments in ships including dockings, rebuildings and ships under construction (incl. settlement of forward exchange contracts) related thereto	-251.1	-124.0	-934.0	-1,299.8
Sale of ships	4.0	0.0	83.7	0.0
Investments in other non-current tangible assets	-203.4	-61.0	-306.3	-214.4
Sale of other non-current tangible assets	3.1	5.2	16.4	35.6
Investments in non-current intangible assets	-8.8	-17.6	-29.5	-51.1
Acquisition of enterprises, associates, joint ventures and activities	-0.4	0.0	-3,635.2	0.0
Sale of activities etc.	0.0	0.0	1.9	0.0
Other investing cash flows	1.5	-24.4	1.1	-34.4
Cash flow to/from investing activities, net	-455.2	-221.8	-4,801.9	-1,564.2
Cash flow before financing activities, net	-138.0			1,058.0
		457.1	-2,513.3
Proceed from bank loans and loans secured by mortgage in ships	670.8	0.0	6,278.8	702.2
Repayment and instalments of bank loans and loans secured by mortgage in ships	-916.5	-84.0	-1,290.4	-165.4
Proceed from issuance of corporate bonds	0.0	-3.4	0.0	990.5
Repayment of corporate bonds incl. settlement of cross currency swap	0.0	0.0	-202.8	-504.9
Change in other non-current investments, net	0.0	0.0	0.4	0.0
Payment of loan in acquired entity	0.0	0.0	-2,756.3	0.0
Payment of financial lease liabilities	-449.2	-2.2	-452.8	-37.1
Acquisition of treasury shares	0.0	-164.0	-190.2	-1,105.8
Other non-current receivable	0.0	0.0	0.0	-111.0
Cash received from exercise of share options	0.0	0.0	59.2	55.3
Government grants received related to purchase of assets	1.3	0.0	7.3	11.9
Other financing cash flows	7.7	0.0	7.3	-0.2
Proceed from increase of share capital	0.0	0.0	1,000.0	0.0
Dividends paid	0.0	0.3	-218.9	-555.3
Cash flow to/from financing activities, net	-685.9	-253.3	2,241.7	-719.7
Net increase (decrease) in cash and cash equivalents	-823.9	203.8	-271.6	338.3
Cash and cash equivalents at beginning of period	1,585.3	829.5	1,033.2	695.6
Foreign exchange and value adjustments of cash and cash equivalents	-0.7	-0.1	-0.9	-0.7

* At 31 December 2018 DKK 43.3m (2017: DKK 0.6m) of the cash was deposited on restricted bank accounts.

The statement of cash flows cannot directly be derived from the Income Statement and the Balance Sheet.

Note 1 Accounting policies

Basis of reporting

This section provides an overview of our principal accounting policies and new and amended IFRS standards and interpretations.

Accounting policies

This interim report has been prepared in accordance with IAS 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, judgements and estimates as for the annual report for 2017 except as described below.

Implementation of new or changed accounting standards and interpretations

DFDS has adopted IFRS 9 – "Financial Instruments: Classification and Measurement of Financial Assets and Financial Liabilities" and IFRS 15 – "Revenue from Contracts with Customers" and all other new, amended or revised accounting standards and interpretations (IFRSs) endorsed by the EU effective for the accounting period beginning on 1 January 2018. Comparative figures are not restated due to either no impact or insignificant impact on the financial statements.

IFRS 9 Financial Instruments

IFRS 9 introduces a new impairment loss model for financial assets by replacing IAS 39's "incurred loss model" approach with a more forward-looking "expected credit loss model". Under the new model it is no longer necessary that a credit event has occurred before a credit loss is recognised. For DFDS the new credit loss model primarily apply to trade receivables. In recent years DFDS' realised losses on trade receivables have been insignificant, and the implementation of the new credit loss model has not had any significant impact on DFDS' credit loss provisions and accordingly, no restatement of equity is made as of 1 January 2018.

Under IFRS 9, investments in equity instruments are measured at "Fair value through profit loss" (FVTPL), or alternatively at "Fair value through Other comprehensive income without recycling to profit loss" provided that the equity instrument is not held for trading. DFDS'

present holding of securities, comprising a minor holding of equity instruments in unlisted enterprises and other investments, was under the replaced IAS 39 classified as "Available for sale" implying that unrealised value adjustments were recognised in Other comprehensive income and attributed to a separate reserve in equity. Following the adoption of IFRS 9 DFDS will from 1 January 2018 recognise its present holding of securities at FVTPL, which implies that the "Revaluation of securities" reserve under equity will be transferred to "Retained earnings".

IFRS 15 Revenue from contracts with customers

On 1 January 2018, the IFRS 15, "Revenue from Contract with Customers", which replaces IAS 11, IAS 18 and associated interpretations, was implemented.

The most important changes resulting from IFRS 15 are:

• the model for recognition of revenue is changed from having been based on the transfer of the risks and rewards of owner-ship of a product or service to being based on the transfer of control of the product or services transferred to the customer
• more detailed guidelines for how elements in a contract of sale are identified, and how the individual components will be recognised and measured
• more detailed guidance for recognition of revenue over time.

The change in the recognition of revenue from transfer of the risks and rewards to the transfer of control, and the additional guidelines for how elements in the contracts are identified and how the individual components will be recognised and measured has only had an insignificant effect.

The Group has concluded that the impact is insignificant and it is assessed that the current accounting policy for variable considerations, such as volume rebates, is consistent with IFRS 15.

In conclusion the adoption of IFRS 9, IFRS 15 and all other new, amended or revised accounting standards and interpretations (IFRSs) have either had no impact or insignificant impact on the Group's Financial Statements and accordingly, the equity as of 1 January 2018 has not been restated, except for the holding of securities, which has been transferred from "Revaluation of securities" under equity to "Retained earnings". However, the new standards have led to additional disclosures in the interim report.

Alignment of expected useful life of the Group's freight vessels

Following the acquisition of U. N. Ro-Ro on 7 June 2018, the Group has reassessed the useful life of its freight vessels as U. N. Ro-Ro applied 35 years whilst DFDS applied 30 years for most of its freight vessels and 35 years for some.

Based on our general high level of maintenance of the fleet; our historical experience with the fundamental components of the vessels (hull and machinery); and the realized accounting gains when selling vessels etc., we have concluded to align the useful life of all the Group's freight vessels to 35 years – unless specific circumstances require a shorter useful life. Further, we have aligned U. N. Ro-Ro's methodology for calculating the vessels' scrap values to the methodology applied by the DFDS Group, where the scrap values are reassessed at least on a yearly basis to reflect the development in steel prices from ship yards etc.

The extension of the useful life of the Group's freight vessels results in a decrease of the yearly depreciations while the alignment and update of the methodology for calculating the vessels' scrap values resulted in an increase of the yearly depreciations.

The above alignments were implemented with accounting effect as from 1 July 2018. The impact from the changes is a net decrease of the Group's depreciations by DKK 26m in the period 1 July - 31 December 2018.

Note 2 Segment Information

	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
FY 2018
External revenue	10,398.1	5,294.8	24.3	15,717.1
Intragroup revenue	719.3	28.9	448.1	1,196.3
Total revenue	11,117.4	5,323.7	472.4	16,913.4
Operating profit (EBIT) before special items	1,808.9	204.1	-104.5	1,908.6
Operating profit after special items (EBIT)	1,825.8	192.9	-159.5	1,859.2

	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
FY 2017
External revenue	9,163.5	5,139.7	24.6	14,327.8
Intragroup revenue	728.9	19.9	375.5	1,124.4
Total revenue	9,892.4	5,159.7	400.1	15,452.2
Operating profit (EBIT) before special items	1,727.1	166.3	-111.7	1,781.7
Operating profit after special items (EBIT)	1,719.9	153.2	-132.1	1,741.0

Note 3 Revenue

	FY 2018
	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
Geographical markets
North Sea	5,090.8	-	0.0	5,090.8
Baltic Sea	1,427.8	-	0.0	1,427.8
English Channel	2,435.4	-	0.0	2,435.4
Mediterranean	1,444.0		0.0	1,444.0
Continent	-	2,369.9	0.0	2,369.9
Nordic	-	1,850.9	0.0	1,850.9
UK/Ireland	-	1,073.9	0.0	1,073.9
Other	0.0	0.0	24.3	24.3
Total	10,398.1	5,294.8	24.3	15,717.1
Product and services
Seafreight and shipping logistics solutions	6,559.7	98.1	0.0	6,657.8
Transport solutions	15.5	5,135.4	0.0	5,150.9
Passenger seafare and on board sales	2,728.9	0.0	0.0	2,728.9
Terminal services	466.1	36.1	0.2	502.4
Charters	378.2	0.0	0.0	378.2
Agency and other revenue	249.6	25.3	24.0	298.8
Total	10,398.1	5,294.8	24.3	15,717.1

All material revenue is recognised when each separate obligation in the customer contract is fulfilled following the "over-time principle". Most transports carried out by the Ferry Division are characterised by short delivery time (most sailings are less than 30 hours while sailings to/from Turkey are up to 60 hours). Transports carried out by Logistics Division can take delivery over a longer period, but the impact is insignificant.

On board sales (7.3% of total revenue) is recognised at "a point in time".

Revenue from leasing activities (2.6% of total revenue) is not within the scope of IFRS 15, however, the leasing revenue is insignificant and is therefore not excluded in the above table.

Note 4 Special items

DKK m	2018 Full year	2017 Full year
Gain on sale of two combined freight and passenger ferries, Kaunas Seaways and
Vilnius Seaways	27.0	0.0
Reversal of impairment of two passenger ships in the business unit Passenger	24.0	0.0
Adjustment of estimated earn-out to the sellers regarding the acquisition of the
route Hanko-Paldiski acquired in 2016 and Kapellskär-Paldiski acquired in 2011
(earn-out settled in 2018) as well as Alphatrans Group B.V. acquired in 2018	17.2	13.7
Accounting loss and costs related to the divestment of DFDS Logistics' loss making
reefer activities in Belfast (2018: release of over-accrued)	3.1	-13.1
Cost and impairments related to closure of the freight terminal in Esbjerg	-0.5	-20.9
Accounting gain and cost, net related to divestment of Italian rail business	-11.6	0.0
Accrual of the total estimated costs (estimated fair value) related to the DFDS
shares awarded to DFDS employees as a special one-off award in connection with
DFDS' 150 years anniversary in December 2016. The costs accrue from December
2016 to February 2020	-18.3	-20.4
Consultancy costs in connection with strategy development and implementation, as
well as redundancy costs related to restructuring of headquarter functions	-38.6	0.0
Costs related to the acquisition and subsequent integration of U.N. Ro-Ro	-51.7	0.0
Special items, net	-49.4	-40.7

Note 5 Acquisition of enterprises and sale of activities

2018

Acquisition of U.N. Ro-Ro

On 7 June 2018 the acquisition of the Turkish company U.N. Ro-Ro headquartered in Istanbul was completed and the DFDS Group obtained control as from this date. After the acquisition the DFDS Group has 98.8% ownership of the acquired company and the acquired company is consolidated as from this date.

The acquisition is 100% made by the newly established subsidiary DFDS Turkey Denizcilik ve Tasi Yati AS and the acquired company is after the acquisition included in the Mediterranean Business Unit.

DFDS paid DKK 3,760.9m for the acquired company. Cash in the acquired company amounted to DKK 209m. U.N. Ro-Ro's estimated revenue for full year 2018 is DKK 1,726m. Trade receivables have been recognised at the acquisition date at a fair value of DKK 352.1m which is DKK 29.4m less than their gross value.

In connection with the acquisition DFDS has measured identifiable intangible assets i.e access to ports etc. which are recognised in the acquisition balance sheet at their fair value. The fair value is calculated to DKK 1,213.0m at acquisition date.

Following recognition of acquired identifiable assets and liabilities at their fair value, the goodwill related to the acquisition is measured at DKK 2,762.3m. Goodwill relates to Business Unit Mediterranean. The goodwill represents primarily the value of purchasing the unique and integrated operating platform of the clear market leader of sea-based transport of Ro-Ro cargo between Turkey and Europe; the value of assets whose fair value cannot be reliably measured, including the value of the staff and know-how taken over; expected synergies from combining the acquired Group with the existing DFDS activities and network.

The Group has elected to measure the non-controlling interests in the acquiree at their proportionate share of the acquired net assets.

Transaction and integration costs amounts to DKK 52m which are included under Special items.

The preliminary purchase price allocation show the following:

	Preliminary
	fair value at
	acquisition
DKK m	date
Non-current intangible assets	1,221.9
Ships	2,699.7
Other non-current tangible assets	382.6
Deferred tax	5.2
Non-current assets	4,309.4
Trade receivables	352.1
Other receivables	78.1
Cash at hand and in bank	209.4
Current assets	639.6
Total assets	4,949.0
Interest bearing debt	3,181.0
Non-interest bearing debt	11.2
Non-current liabilities	3,192.2
Trade payables	284.1
Interest bearing debt	421.3
Other current liabilities	36.1
Current liabilities	741.5
Total liabilities	3,933.7
Non-controlling interests' share of acquired net assets	16.7
Fair value of acquired net assets	998.6
Preliminary goodwill at acquisition	2,762.3
Total purchase price	3,760.9
Acquired cash at hand and in bank	209.4
Fair value of the purchase price	3,551.5

The above purchase price allocation is preliminary. Accordingly, changes may occur.

Acquisition of Alphatrans Group

On 3 January 2018 the acquisition of the Dutch company Alphatrans Group BV headquartered in Rotterdam was completed and the DFDS Group obtained control as from this date. After the acquisition the DFDS Group has 100% ownership of the acquired company and the acquired company is consolidated as from this date.

The acquisition is 100% made by the subsidiary DFDS Holding B.V. and the acquired company is after the acquisition included in the Continent Business Unit.

DFDS paid DKK 116m for the acquired company of which DKK 14m was a deferred payment. Cash in the acquired company amounted to DKK 32m and accordingly the liquidity effect in 2018 was DKK 84m. In addition an earn-out agreement was entered into according to which seller is entitled to additional payment based on the Alphatrans Group's financial performance combined for 2017 and 2018.

Transaction costs incurred were insignificant and were expensed in 2017 as part of Administration costs.

The purchase price allocation show the following.

	Fair value at acquisition
DKK m	date
Non-current assets	133.7
Current assets	98.3
Total assets	232.0
Non-current liabilities	45.7
Current liabilities	67.6
Total liabilities	113.3
Fair value of acquired net assets	118.7
Total purchase price
Cash consideration	102.3
Deferred consideration	13.6
Estimated value of earn-out	20.4
Fair value of the purchase price	136.4
Goodwill at acquisition	17.7

2017

Disposals

On 1 November 2017 the divestment of the Logistics Division's lossmaking reefer activities in Belfast to Manfreight Ltd. was completed. For further details of this disposal, refer to the annual report for 2017.

Note 6 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 2018.

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.

	FY 2018		FY 2017
DKK m	Fair value	Carrying amount	Fair value	Carrying amount
Financial assets
Derivatives (Level 2)	231.6	231.6	3.8	3.8
Securities (Level 3)*	9.5	9.5	0.0	0.0
Financial liabilities
Derivatives (Level 2)	94.6	94.6	206.0	206.0

* In 2017 securities were measured at cost reduced by write-downs, if any, and consequently, they were not included in the fair value hierarchy. Following the implementation of IFRS 9 the securities must be measured at fair value.

Note 7 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 2017. 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 2018. For further description reference is made to note 1 Accounting policies.

The Parent Company's revenue increased by DKK 338.4m, equivalent to 3.6%. Operating profit before depreciation and special items (EBITDA) decreased from DKK 1,816.6m to DKK 1,670.3m, equivalent to a decrease of 8.1%.

Profit before tax increased from DKK 1,879.7m in 2018 to DKK 2,539.9m in 2018.

Included in Financial items, net for 2018 is an income of DKK 183.5m from reversal of previous impairments of investments in subsidiaries that are no longer needed. In 2018 an income of DKK 10m is recognised from reversal of previous written down receivables from subsidiaries which are no longer needed. Further, a cost of DKK 100.0m is recognised due to impairment of investments in subsidiaries. Also included in Financial items is dividends received from subsidiaries of DKK 1,255m.

The Parent Company's net interest-bearing debt decreased from DKK 3,321.8m at 31 December 2017 to DKK 2,394.7m at 31 December 2018.

	2018	2017
DKK m	Full year	Full year
Income statement
Revenue	9,854.3	9,515.9
Operating profit before depreciation (EBITDA) and special items	1,670.3	1,816.6
Operating profit (EBIT) before special items	1,197.7	1,329.9
Special items, net	-3.9	94.1
Operating profit (EBIT)	1,193.8	1,424.0
Financial items, net	1,346.0	455.7
Profit before tax	2,539.9	1,879.7
Profit for the period	2,537.5	1,878.2
Assets
Non-current intangible assets	351.2	367.1
Non-current tangible assets	4,651.2	4,292.9
Investments in affiliated companies, associates and joint ventures	5,862.2	3,951.3
Other non-current assets	278.5	120.7
Non-current assets	11,143.1	8,732.0
Current receivables from affiliated companies	981.2	963.5
Receivables from associates and joint ventures	70.2	53.4
Cash	580.6	937.6
Other current assets	1,112.1	939.1
Current assets	2,744.0	2,893.6
Assets	13,887.2	11,625.5
Equity and liabilities
Equity	8,416.7	4,961.5
Non-current liabilities	1,765.0	2,438.8
Current liabilities to affiliated companies	1,586.0	2,507.8
Other current liabilities	2,119.5	1,717.3
Current liabilities	3,705.5	4,225.2
Equity and liabilities	13,887.2	11,625.5
Equity ratio, %	60.6%	42.7%
Net interest-bearing debt	2,394.7	3,321.8

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	Operating profit (EBIT) before special items × 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	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)	Net operating profit after taxes (NOPAT) × 100 Average invested capital
Free cash flow (FCFF)	Cash flow from operating activities excluding net interest received and paid minus cash flow from net investments
Return on equity	Profit for the period excluding non-controlling interests × 100 Average equity excluding non-controlling interests
Equity ratio	Equity at end of period × 100 Total assets
Earnings per share (EPS)	Profit for the period excluding non-controlling interests × 100 Weighted average number of ordinary shares in circulation
P/E ratio	Share price at the end of the period × 100 Earnings per share (EPS)
Dividend per share	Dividend for the year × 100 Number of shares at the end of the period
Market value	Number of shares, ex. treasury shares, end of period times share price end of period
No. of ships	Owned and chartered ships, including slot charter and vessel sharing agreements

Roundings may in general cause variances in sums and percentages in this report.

Q4 Interim and Full-year Report

Appendix RESTATEMENT OF 2018 ACCORDING TO IFRS ON LEASES

2018

DFDS Group

		Q1 2018			Q2 2018 Q3 2018								Q4 2018 LTM
			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma
		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited
	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16
DKK m	Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment	restated
Income statement
EBITDA before special items	453	144	597	802	146	948	1,045	151	1,197	688	159	847	2,988	601	3,589
• Ferry	388	112	500	715	114	829	982	117	1,099	627	123	751	2,713	466	3,179
• Logistics	81	23	105	91	24	116	78	26	103	81	27	107	330	100	431
• Non-allocated items	-15	8	-8	-4	8	4	-16	9	-6	-20	9	-11	-55	34	-21
EBIT before special items	216	13	229	533	14	547	747	14	762	412	15	427	1,909	56	1,965
Financial items, net	-12	-13	-25	-39	-14	-53	-126	-14	-140	11	-15	-4	-165	-56	-222
Profit before tax	177	0	177	431	0	431	625	0	625	460	-1	459	1,694	0	1,694
Profit for the period	157	1	158	407	0	407	602	0	602	471	-0	471	1,637	1	1,638
Balance sheet items impacted by IFRS 16
Land and buildings	164	170	334	161	153	314	160	136	296				163	123	286
Terminals	475	1,407	1,882	733	1,608	2,342	723	1,600	2,323				1,170	1,566	2,737
Ships	7,425	676	8,101	10,598	608	11,205	10,498	539	11,036				9,731	729	10,460
Equipment, etc.	695	131	826	739	141	881	713	134	847				1,004	134	1,138
Deferred tax asset	65	29	94	69	29	97	68	29	98				70	29	99
Interest-bearing liabilities, non-current	2,974	1,998	4,972	8,438	2,109	10,547	8,417	2,020	10,437				8,389	2,082	10,471
Interest-bearing liabilities, current	235	572	807	1,012	586	1,598	850	574	1,424				869	655	1,524
Capital
Total assets	13,164	2,413	15,577	21,454	2,539	23,993	21,805	2,438	24,243				22,132	2,581	24,713
Equity	6,399	-156	6,243	7,935	-156	7,779	8,583	-156	8,427				9,255	-156	9,099
Net interest-bearing debt	2,630	2,569	5,199	8,256	2,695	10,951	7,666	2,594	10,260				8,513	2,738	11,251
Invested capital, end of period	9,165	2,384	11,549	16,327	2,510	18,838	16,389	2,409	18,798				17,908	2,552	20,460
Invested capital, average, LTM	9,170	2,323	11,493	10,599	2,363	12,963	12,042	2,384	14,425				13,778	2,432	16,210
Key operating and return ratios
EBITDA-margin, %	13.0	4.1	17.1	20.6	3.8	24.4	23.8	3.5	27.3	17.4	4.0	21.4	19.0	3.8	22.8
ROIC before special items, %, LTM	19.3	-3.5	15.8	16.9	-2.7	14.2	14.8	-2.1	12.7				13.5	-1.7	11.8
Key capital ratios
Equity ratio, %	48.6	-8.5	40.1	37.0	-4.6	32.4	39.4	-4.6	34.8				41.8	-5.0	36.8
NIBD/EBITDA, LTM, (times)	1.0	0.6	1.6	2.9	0.3	3.2	2.7	0.3	3.0				2.8	0.3	3.1

Divisions

Ferry Division

		Q1 2018		Q2 2018			Q3 2018				Q4 2018		Q4 2018 FY
			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma		Pro forma Pro forma
		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited
	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16
DKK m	Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment	restated
Income statement
EBITDA before special items	388	112	500	715	114	829	982	117	1,099	627	123	751	2,713	466	3,179
EBIT before special items	194	12	206	488	12	500	729	13	742	398	13	411	1,809	50	1,859
Capital
Invested capital, average LTM	8,262	1,999	10,261	9,658	2,044	11,702	11,049	2,073	13,122				12,648	2,135	14,783
Key operating and return ratios
EBIT margin before special items, %, quar
terly	8.4	0.5	9.0	17.9	0.5	18.3	22.2	0.4	22.6	14.2	0.5	14.6	16.3	0.5	16.7
ROIC before special items, %, LTM	20.8	-3.6	17.2	17.9	-2.7	15.2	15.6	-2.1	13.5				14.1	-1.7	12.4

Logistics Division

	Q1 2018			Q2 2018			Q3 2018				Q4 2018		Q4 2018 FY
			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma
		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited
	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16
DKK m	Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment	restated
Income statement
EBITDA before special items	81	23	105	91	24	116	78	26	103	81	27	107	330	100	431
EBIT before special items	48	1	49	60	1	61	47	1	48	49	1	49	204	3	207
Capital
Invested capital, average LTM	1,155	228	1,382	1,167	226	1,393	1,181	221	1,402				1,204	215	1,418
Key operating and return ratios
EBIT margin before special items, %, quar
terly	3.5	0.1	3.5	4.5	0.1	4.6	3.7	0.1	3.7	3.7	0.1	3.7	3.8	0.1	3.9
ROIC before special items, %, LTM	14.5	-2.2	12.4	14.9	-2.2	12.7	14.5	-2.1	12.4				14.2	-1.9	12.3

Ferry Division business units

		Q1 2018			Q2 2018			Q3 2018			Q4 2018		Q4 2018 FY
			Pro forma Pro forma			Pro forma Pro forma			Pro forma Pro forma		Pro forma Pro forma				Pro forma Pro forma
		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited
	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16
DKK m	Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment	restated
North Sea
EBIT before special items	150	11	161	186	11	198	140	11	151	174	11	186	651	46	696
Invested capital, end of period	3,967	1,894	5,861	3,808	1,814	5,623	3,754	1,761	5,514	3,431	1,685	5,116	3,805	1,788	5,592
ROIC before special items, %, LTM	16.0	-4.1	11.9	16.5	-4.4	12.2	16.0	-4.3	11.8				16.7	-4.5	12.2
Baltic Sea
EBIT before special items	70	1	70	104	1	104	111	1	111	77	1	77	361	2	363
Invested capital, end of period	1,218	140	1,358	1,234	125	1,359	1,103	108	1,211	1,471	251	1,722	1,237	156	1,393
ROIC before special items, %, LTM	31.5	-3.4	28.1	31.4	-3.3	28.1	31.5	-3.1	28.4				29.1	-3.1	26.0
Channel
EBIT before special items	25	0	25	80	0	80	221	0	222	71	0	71	397	0	397
Invested capital, end of period	2,025	14	2,039	1,872	12	1,884	1,777	10	1,786	1,736	7	1,744	1,854	12	1,866
ROIC before special items, %, LTM	19.4	-0.1	19.3	19.7	-0.1	19.6	20.0	-0.1	19.8				21.3	-0.1	21.2
Mediterranean
EBIT before special items	3	0	3	29	0	29	66	1	67	82	1	83	180	2	182
Invested capital, end of period	122	1	123	7,204	232	7,436	7,239	229	7,468	8,192	324	8,517	4,574	157	4,732
ROIC before special items, %, LTM	9.1	0.0	9.0	2.2	0.0	2.1	3.4	-0.1	3.3				3.9	-0.1	3.8
Passenger
EBIT before special items	-80	0	-80	57	0	57	164	0	164	-25	0	-25	116	1	116
Invested capital, end of period	562	23	585	479	22	501	650	20	671	760	20	780	633	21	654
ROIC before special items, %, LTM	23.8	-0.7	23.1	20.2	-0.6	19.6	17.5	-0.5	17.0				17.9	-0.5	17.4
Non-allocated items
EBIT before special items	27	0	27	33	0	33	26	0	26	19	0	19	105	0	105

Logistics Division business units

	Q1 2018			Q2 2018			Q3 2018			Q4 2018		Q4 2018 FY
			Pro forma Pro forma			Pro forma Pro forma		Pro forma Pro forma				Pro forma Pro forma			Pro forma Pro forma
		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited		unaudited	unaudited
	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16	As	IFRS 16	IFRS 16
DKK m	Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment		restated Reported	adjustment	restated
Nordic
EBIT before special items	26	0	26	26	0	27	15	0	15	21	0	22	88	2	90
Invested capital, end of period	362	124	486	306	115	421	299	103	402	373	92	465	342	114	456
ROIC before special items, %, LTM	21.3	-5.3	16.0	23.8	-5.9	18.0	23.2	-5.6	17.6				23.1	-5.3	17.8
Continent
EBIT before special items	18	0	18	22	0	22	18	0	19	8	0	8	67	0	67
Invested capital, end of period	513	54	567	521	51	572	528	46	574	552	44	596	496	49	545
ROIC before special items, %, LTM	15.5	-1.7	13.8	14.4	-1.5	13.0	13.2	-1.2	12.0				10.9	-0.9	10.0
UK & Ireland
EBIT before special items	4	0	4	13	0	13	14	0	14	19	0	19	49	1	50
Invested capital, end of period	387	44	431	357	56	413	373	56	429	338	59	397	365	51	416
ROIC before special items, %, LTM	7.5	-0.6	6.9	7.3	-0.6	6.6	8.2	-0.8	7.4				10.3	-1.1	9.2
Non-allocated items
EBIT before special items	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0

2018 Management review Ferry Logistics Reports Financials Appendix Contact Q4 Interim and Full-year Report / p 37

DFDS A/S

Sundkrogsgade 11, DK-2100 Copenhagen Ø CVR 14 19 47 11 www.dfds.com

7 February 2019 Company announcement no.: 3/2019

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

Disclaimer

The statements about the future in this announcement contain risks and uncertainties and actual developments may therefore diverge significantly from the statements about the future.

About DFDS

DFDS provides ferry and transport services in Europe and Turkey, generating annual revenues of EUR 2.4bn.

To over 10,000 freight customers, we deliver high performance and superior reliability through ferry & port terminal services, and transport & logistics solutions.

For more than five million passengers, we provide safe overnight and short sea ferry services.

Our 8,000 employees are located on ferries and in offices across 20 countries. DFDS was founded in 1866, is headquartered in Copenhagen, and listed on NASDAQ Copenhagen.