DFDS — Interim / Quarterly Report 2019

May 9, 2019

FIRST QUARTER ON TRACK

• North Sea achieved strong result
• Fast Mediterranean ramp-up delivers growth but at reduced margins
• Negative one-off impacts from Easter timing on passengers and additional vessel costs in Baltic
• 2019 EBITDA outlook unchanged: DKK 3.8-4.0bn (2018: DKK 3.6bn, restated)

2019

Highlights Q1*

Q1 2019

• Revenue up 11% to DKK 3.9bn
• EBITDA up 13% to DKK 677m
• First new freight ferry delivered and deployed

Outlook 2019 unchanged

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

"The continued expansion of our network drives DFDS' growth in 2019 and beyond. Despite current headwinds in some markets, we are on track to deliver on our outlook for the year."

Torben Carlsen, CEO

In Q1, revenue increased 11% to DKK 3.9bn driven by the expansion in the Mediterranean and stockpiling in UK ahead of the initial Brexit-date end of March. The Easter timing difference vs 2018 lowered passenger revenue.

EBITDA before special items for Q1 increased 13% to DKK 677m driven by the Mediterranean expansion and strong performance in North Sea.

Baltic Sea's result was lowered by one-off additional operating costs as capacity was maintained during dockings, one of which was extended. In addition, the Easter timing difference reduced passenger earnings compared to Q1 2018, especially in the Passenger business unit.

Logistics continued to improve performance in UK & Ireland. In Sweden and Belgium earnings were lower as Q1 2018 included peak earnings from a large contract.

The first in a series of six new freight ferries was delivered in February and successfully deployed in March between Istanbul and Trieste.

Outlook 2019

The outlook is unchanged for revenue growth of 10-12% and for EBITDA before special items of DKK 3,800-4,000m (2018 restated to IFRS 16: DKK 3,589m). See full outlook section on page 9.

KEY FIGURES
DKK m	2019	2018*		2018-19*	2018*
Before special items	Q1	Q1	∆ %	LTM	Full year
Revenue	3,870	3,485	11.0%	16,102	15,717
EBITDA	677	597	13.4%	3,668	3,589
EBIT	234	229	1.8%	1,969	1,965
Profit before tax	159	204	-22.3%	1,697	1,744

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

9 May 2019. Conference call today at 10.00am CET

Access code: 72783791# Phone numbers to the call: DK +45 35445577, US +1 631 913 1422, UK +44 333 300 0804

Key figures – 2018 restated

	2019		2018 2018-19	2018*
DKK m	Q1	Q1	LTM	Full year
Income statement
Operating profit before depreciation (EBITDA) and special items	677	597	3,668	3,589
• Ferry Division	584	500	3,263	3,179
• Logistics Division	109	105	435	431
• Non-allocated items	-16	-8	-30	-21
Operating profit (EBIT) before
special items	234	229	1,969	1,965
Financial items, net	-75	-25	-272	-222
Profit before tax	144	177	1,659	1,694
Profit for the period	120	158	1,601	1,638
Capital
Total assets	25,549	15,577	-	24,713
Equity	9,042	6,243	-	9,099
Net interest-bearing debt	11,979	5,199	-	11,251
Invested capital, end of period	21,159	11,549	-	20,460
Invested capital, average	20,809	11,478	18,161	16,210
Key operating and return ratios
EBITDA-margin, %	17.5	17.1	22.8	22.8
ROIC before special items, %	-	-	10.5	11.8
Key capital and per share ratios
Equity ratio, %	35.4	40.1	-	36.8
Net interest bearing debt/EBITDA, (times)	-	-	3.3	3.1

Comparison between 2019 and 2018 following implementation of IFRS 16

The new IFRS 16 rules have been implemented from 1 January 2019.

Comparison figures for 2018 have been restated according to IFRS 16 on a pro forma and unaudited basis in three main sections:

• In the text and table on page 2
• In the key figures table on this page
• In the Management review, page 5-17, including text and tables.

In the key figures table on page 4 and in the Financials section starting on page 19, 2018 figures are in accordance with the IFRS 16 implementation method applied by DFDS not restated.

The implementation of IFRS 16 is detailed in Note 5, page 27.

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

Key figures – 2018 not restated

	2019		2018 2018-19	2018*
DKK m	Q1	Q1	LTM	Full year
Income statement
Revenue	3,870	3,485	16,102	15,717
• Ferry Division	2,714	2,301	11,531	11,117
• Logistics Division	1,348	1,385	5,286	5,324
• Non-allocated items	135	122	485	472
• Eliminations	-327	-323	-1,200	-1,196
Operating profit before depreciation (EBITDA) and special items	677	453	3,212	2,988
• Ferry Division	584	388	2,909	2,713
• Logistics Division	109	81	359	330
• Non-allocated items	-16	-15	-56	-55
Profit/loss on disposal of non-current
assets, net	1	2	5	7
Operating profit (EBIT) before
special items	234	216	1,926	1,909
Special items, net	-15	-27	-38	-49
Operating profit (EBIT)	219	189	1,888	1,859
Financial items, net	-75	-12	-228	-165
Profit before tax	144	177	1,660	1,694
Profit for the period	120	157	1,601	1,637
Profit for the period excluding
non-controlling interest	120	156	1,593	1,630
Capital
Total assets	25,549	13,164	-	22,132
DFDS A/S' share of equity	8,963	6,351	-	9,175
Equity	9,042	6,399	-	9,255
Net interest-bearing debt	11,979	2,630	-	8,513
Invested capital, end of period	21,159	9,165	-	17,908
Invested capital, average	19,533	9,132	16,190	13,778

	2019		2018 2018-19	2018*
DKK m	Q1	Q1	LTM	Full year
Cash flows
Cash flows from operating activities, before financial
items and after tax	673	344	2,845	2,516
Cash flows from investing activities	-818	-235	-5,385	-4,802
• Acquisition of enterprises and activities	0	-70	-3,566	-3,635
• Other investments, net	-818	-166	-1,819	-1,167
Free cash flow	-145	109	-2,540	-2,286
Key operating and return ratios
Average number of employees	8,222	7,317	7,704	7,791
Number of ships	75	64	-	70
Fuel consumption per nautical mile (g/GT/Nm)	5.03	5.22	4.92	4.96
Revenue growth (reported), %	11.0	8.2	2.4	9.7
EBITDA-margin, %	17.5	13.0	19.9	19.0
Operating margin, %	6.0	6.2	12.0	12.1
Revenue, invested capital average, (times)	-	-	1.0	1.1
Return on invested capital (ROIC), %	-	-	11.3	13.1
ROIC before special items, %	-	-	11.6	13.5
Return on equity, %	-	-	20.8	20.7
Key capital and per share ratios
Equity ratio, %	35.4	48.6	-	41.8
Net interest bearing debt/EBITDA, (times)	-	-	3.7	2.8
Earnings per share (EPS), DKK	2.10	2.86	28.03	28.99
Dividend paid per share, DKK	4.00	4.00	4.00	4.00
Number of shares, end of period, '000	58,632	57,000	-	58,632
Weighted average number of circulating shares, '000	57,177	54,628	-	56,204
Share price, DKK	275.4	338.2	-	262.2
Market value	15,749	18,474	-	14,990

* Comparative 2018 numbers are not restated to IFRS 16

Definitions on page 32.

Management review

Market overview

European growth continued to be modest in Q1 2019, although trade between UK and continental Europe picked up ahead of the initial Brexit-date end of March. The postponement of Brexit for potentially six months entails unchanged low visibility on the final outcome and timing of Brexit. Consensus estimate on European real GDP growth is now around 1.2% for 2019.

The total trading volume of goods between UK — a major market for DFDS — and the rest of Europe increased as both UK import and export volumes were up 7% in the first two months of 2019.

Turkey's real GDP decreased in Q1 2019 as slowing demand in Europe lowered industrial production and imports continued to decline, also due to the depreciation of TRY.

The largest change in average exchange rates in Q1 2019 vs Q1 2018 was a decrease in SEK/DKK of 4.1%. TRY/DKK depreciated 4.8% from the end of Q4 2018 to the end of Q1 2019.

The Easter holiday was in 2019 in April compared to March in 2018. This entails a negative impact on passenger volumes when comparing quarters year-on-year.

Major events in Q1

New CEO for DFDS

On 4 March 2019, Torben Carlsen was appointed new CEO with effect from 1 May 2019 following Niels Smedegaard's resignation after 12 years as CEO. Torben Carlsen is also acting CFO until a replacement has been appointed.

Dividend

The annual general meeting on 26 March 2019 approved the dividend of DKK 4.00 per share as proposed by the Board of Directors.

Major events after Q1

Termination of agreement with UK DfT

UK Department for Transport notified DFDS on 1 May 2019 that they wished to terminate the agreement to provide additional ferry capacity between UK and continental Europe. The agreement commenced on 29 March 2019. DFDS will receive a cancellation fee in accordance with the agreement to cover costs incurred in ensuring availability of capacity for the six-month duration of the agreement.

5-year agreement with Stora Enso and new route

On 9 May 2019, DFDS and Stora Enso have entered into a 5-year agreement to annually carry around 700,000 tons of paper and board products between Gothenburg and Zeebrugge.

Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. Stora Enso has annual sales of EUR 10.5bn and 26,000 employees.

To accommodate the volumes of the agreement, DFDS will open a route between Gothenburg, Sweden, and Zeebrugge, Belgium. The new route will be operated by three freight ferries. Two freight ferries — Slingeborg and Schieborg — will be acquired from third party owners for DKK 270m. In addition, one freight ferry will be transferred from DFDS' existing route between Gothenburg and Ghent that currently deploys four freight ferries. The significant increase in departure frequency between Sweden and Belgium will enhance customer services and support the growth of our customers.

The route is expected to begin operating mid June 2019 and reach revenue in excess of DKK 300m in 2020.

5 key DFDS performance drivers in 2019

Growth from Mediterranean expansion

Revenue of DKK 484m was added in Q1 2019 from the full year impact of the expansion of the ferry route network in the Mediterranean, including the acquisition of U. N. Ro-Ro on 7 June 2018 and a new, major customer agreement entered into at the end of 2018 with Ekol Logistics.

Well prepared for Brexit

Preparations for Brexit included postponement of a number of dockings from Q1 to Q2 or Q3 to make capacity available for customers for stockpiling ahead of the initial Brexit-date, 29 March 2019. As foreseen, stockpiling gathered pace on DFDS' routes from mid-February until the end of a very busy March.

Preparations with customers and authorities are continuing to ensure a minimum of disturbance in the event of a Brexit.

Routes strengthened by new freight ferries

The first new freight ferry was deployed between Istanbul and Trieste on 12 March 2019. The ferry is performing as expected and has carried up to 480 freight units, mainly trailers, per departure. Two additional new freight ferries are planned to be delivered in June and October, respectively, this year.

Revenue

DKK m	Q1 2019	Q1 2018	Change, %	Change
Ferry Division	2,714	2,301	18.0	413
Logistics Division	1,348	1,385	-2.7	-37
Non-allocated items	135	122	10.5	13
Eliminations	-327	-323	-1.2	-4
DFDS Group	3,870	3,485	11.0	385

Digital business projects to go live

DFDS Direct received its first bookings in April. The digital business model for freight forwarding is initially focused on full-load solutions between UK and Netherlands. The DFDS Spot ticket launched in Q4 for two Channel routes (Dover-Calais and Dover-Dunkirk) has grown in popularity during Q1 as more customers become aware of it and appreciate the convenience of instantly buying a flexible ticket online with a credit card.

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

The continuous improvement and efficiency projects are on track 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 Q1 was DKK 3,870m, an increase of 11.0% compared to 2018 driven by Ferry Division as Logistics Division's revenue was lowered by a closure of activities compared to last year.

Ferry Division's revenue increased in Q1 by 18.0% to DKK 2,714m. 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 and a new customer agreement with Ekol Logistics with effect from end of December 2018. This increased revenue by DKK 484m in Q1. Revenue in northern Europe was increased by UK stockpiling but this was offset by peak volumes on a large logistics contract between Sweden and the Continent in Q1 2018, lower passenger volumes due to the Easter timing difference vs 2018 and fewer departures in the Channel and Passenger business units due to dockings. In addition, the Rosyth-Zeebrugge route was closed in April 2018.

Logistics Division's revenue in Q1 increased 1.9% to DKK 1,348m adjusted for the closure of activities. Reported revenue decreased 2.7%. Revenue increased 19.8% in UK & Ireland boosted by a large new cold chain logistics contract and UK stockpiling. Revenue for the Nordic and Continent business units was reduced by the closure of activities in 2018 as well as peak volumes on a large logistics contract between Sweden and the Continent operated jointly by these business units.

Operating profit before depreciation (EBITDA) and special items

In Q1, the Group's EBITDA increased 13% to DKK 677m, primarily driven by Ferry Division.

Ferry Division's EBITDA in Q1 increased 17% to DKK 584m driven by the expansion of the Mediterranean route network. Earnings also increased in North Sea and Channel.

Baltic Sea's result was reduced by one-off additional ferry costs, including bunker, as several dockings, one extended, required deployment of replacement ferries to maintain customer service and capacity. This included deployment of a passenger ferry for 1.5 months which in turn reduced departures on Amsterdam-Newcastle. These extra costs offset improved performance on the two routes out of Paldiski.

The Passenger business unit's result was reduced by the Easter timing difference and, in addition, higher tonnage costs.

Logistics Division's EBITDA in Q1 increased 5% to DKK 109m as continued improvement of earnings in UK & Ireland offset lower earnings in Nordic and Continent. These business units were compared to 2018 negatively impacted by the peak activity of a large logistics contract between Sweden and Continent in Q1 2018. The result was also improved by the closure of loss making activities.

Non-allocated corporate costs increased to DKK -16m from DKK -8m primarily due to timing differences.

Depreciation and operating profit (EBIT) before special items

Depreciation in Q1 of DKK 447m increased 19% compared to 2018 mainly due to the acquisition of U. N. Ro-Ro and the opening of a new route between Turkey and Italy, including a port terminal agreement.

The Group's EBIT before special items for Q1 increased 2% to DKK 234m.

Special items and operating profit (EBIT) after special items

In Q1 2019, special items were a net cost of DKK 15m. The Group's Q1 EBIT after special items increased 8% to DKK 219m.

Financial items

Total finance, net in Q1 was a cost of DKK 75m, an increase of DKK 50m compared to 2018. Two thirds of the increase was due to higher interest costs, mostly related to the acquisition of U. N. Ro-Ro. The remaining increase was due to a negative variance on net currency adjustments of DKK 17m, of which DKK 3m was related to customer receivables in Turkey.

In Turkey, a new invoicing model was implemented from the beginning of 2019 which has considerably reduced the currency exposure on customer receivables in TRY as less than 5% of customer receivables are now paid in TRY.

Profit before and after tax

The profit before tax for Q1 decreased 19% to DKK 144m and the profit after tax was DKK 120m.

Earnings per share

Earnings per share (EPS) for the quarter was DKK 2.10 compared to DKK 2.86 in Q1 2018, a decrease of 27%.

Cash flow and investments

The cash flow from operating activities was DKK 628m in Q1. The free cash flow (FCFF) of Q1 was DKK -145m following investments of DKK 818m, including DKK 597m of ship investments of which DKK 320m was ferry new buildings.

In Q1, the cash flow from financing activities was negative by DKK 65m following net loan proceeds of DKK 323m, payment of lease liabilities of DKK 160m and payment of dividend of DKK 229m equal to DKK 4.00 per share.

DFDS GROUP - EBITDA BEFORE SPECIAL ITEMS

Operating profit before depreciation (EBITDA) & special items

DKK m	Q1 2019	Q1 2018*	Change, %	Change
Ferry Division	584	500	16.8	84
Logistics Division	109	105	4.8	5
Non-allocated items	-16	-8	n.a.	-9
DFDS Group	677	597	13.4	80
EBITDA-margin, %	17.5	17.1	2.1	0.4

Associates and joint ventures, profits on disposals and depreciation

DKK m	Q1 2019	Q1 2018*	Change, %	Change
EBITDA before special items	677	597	13.4	80
Associates and joint ventures	2	3	-50.3	-2
Profit on disposals	1	2	-48.9	-1
Depreciation and impairment	-447	-374	-19.5	-73
EBIT before special items	234	229	1.8	4

Financial items

DKK m	Q1 2019	Q1 2018*	Change, %	Change
Interests, net	-60	-27	n.a.	-33
Foreign exchange gains/losses, net	-10	7	n.a.	-17
Other items, net	-5	-5	-4.1	0
Total finance, net	-75	-25	n.a.	-50

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

2019 Management review Ferry Logistics Reports Financials Appendix Contact Q1 Interim Report / p 9

The net cash flow for Q1 2019 was negative by DKK 254m and cash amounted to DKK 506m at the end of the quarter.

Invested capital and ROIC

Invested capital was DKK 21.2bn at the end of Q1 2019. Compared to year-end 2018 (restated), the invested capital increased DKK 0.7bn mainly due to investments and invested capital related to a new customer agreement in Turkey. The average invested capital for the last twelve months increased 12% to DKK 18.2bn.

For the last twelve months, the return on invested capital, ROIC, was 10.5% before special items compared to 11.8% for 2018 (restated). The decrease in ROIC was mainly due to the full-year impact of the acquisition of U. N. Ro-Ro.

Capital structure

At the end of Q1 2019 net-interest-bearing debt (NIBD) was DKK 12.0bn, an increase of DKK 0.7bn compared to year-end 2018 (restated) following the increase in the invested capital.

Financial leverage, as measured by the ratio of NIBD to EBITDA before special items, was a multiple of 3.3 compared to 3.1 at year-end 2018 (restated). The equity ratio was 35% at the end of Q1 2019 down from 37% at yearend 2018.

Equity

Equity amounted to DKK 9,042m at the end of Q1 2019, including minority interests of DKK 79m. This was a decrease of 2% compared to equity at year-end 2018 as the change in accounting policy (IFRS 16) reduced equity by DKK -232m, total comprehensive income for 2019 was DKK 242m while transactions with owners decreased equity by DKK 223m, including distribution of DKK 229m as dividend.

Management shareholdings

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

Outlook 2019

The visibility on Europe's growth path, particularly in northern Europe, remains reduced by the still unknown outcome of Brexit.

Trading between Europe and Turkey has become an important driver for DFDS. The Turkish economy continues to rebalance following the extraordinary TRY depreciation in August 2018 and estimates on real GDP growth have been lowered in recent months to around -0.3%.

It is, however, still expected that Turkish exports will rebound later in 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 estimate for European real GDP growth in 2019 is around 1.2%.

Revenue outlook

The Group's revenue is still 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).

Special items

Special items of DKK -30m, previously DKK -20m, are expected in 2019, mainly related to the award of shares to employees in connection with DFDS' 150th anniversary in 2016.

Investments

The outlook for investments has been increased to around DKK 2.8bn from previously around DKK 2.5bn following the opening of a new route between Gothenburg and Zeebrugge:

• Freight ferry (ro-ro) new buildings: DKK 1,150m
• Combined freight and passenger ferry (ro-pax) new buildings: DKK 250m
• Purchase of two freight ferries: DKK 270m
• 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. The first one was delivered as planned in February and the next two are expected for delivery in 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**	-30	-49	-49
Investments**	-2,800	-4,802	-4,802

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

**Adjusted compared to previous outlook

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.

Improved logistics performance in UK & Ireland

All areas improved in performance in the UK & Ireland business unit in Q1. Cold chain logistics for a range of food producers is now the largest activity in the business unit.

2019 Management review Ferry Logistics Reports Financials Appendix Contact Q1 Interim Report / p 12

Ferry Division Ferry Division

The division is organised in five business units:

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

Q1 market, activity and result trends

North Sea

Freight volumes in Q1 were up 1.4% on 2018 adjusted for the closure of Rosyth-Zeebrugge in April 2018. Volumes were 6.2% higher than last year excluding volumes between Sweden and Belgium that were considerably lower due to a peak in volumes from a large logistics contract in Q1 2018. A new contract is in place at a lower level of volumes. Trading between UK and continental Europe was boosted by stockpiling ahead of the initial Brexit date, 29 March 2019. There was also a positive impact from stockpiling on trading between Sweden and UK.

EBIT in Q1 increased 18% to DKK 190m primarily driven by the higher volumes.

	2019	2018*			2018-19*	2018*
DKK m	Q1	Q1	Q2	Q3	Q4	LTM	Full year
Revenue	2,714	2,301	2,729	3,280	2,807	11,531	11,117
EBITDA before special items	584	500	829	1,099	751	3,263	3,179
Share of profit/loss of associates and
joint ventures	2	3	1	-1	-1	0	2
Profit/loss on disposal of non-current assets, net	1	1	0	0	0	1	1
Depreciation and impairment	-363	-298	-330	-357	-338	-1,387	-1,323
EBIT before special items	223	206	500	742	411	1,877	1,859
EBIT margin before special items, %	8.2	9.0	18.3	22.6	14.6	16.3	16.7
Special items, net	0	-1	-45	23	40	18	17
EBIT	223	205	456	764	451	1,894	1,876
Invested capital, average	18,841	10,203	13,858	17,422	18,031	16,558	14,783
ROIC before special items, %	-	-	-	-	-	11.2	12.4
Lane metres, '000	10,593	9,536	10,046	10,211	10,283	41,134	40,077
Passengers, '000	732	862	1,409	2,163	1,003	5,309	5,439

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

Baltic Sea

Freight volumes in Q1 were 7.7% higher than in 2018 mainly due to increased volumes and market share on the northern routes. Several dockings, one extended, required deployment of replacement ferries in the quarter to maintain customer service and capacity. This included deployment of a passenger ferry for 1.5 months transferred from Amsterdam-Newcastle. Passenger volumes were up 16.3% with increases on all routes.

EBIT in Q1 decreased 43% to DKK 40m due to the mentioned dockings that entailed one-off additional vessel costs, including a higher bunker cost.

Channel

Freight volumes in Q1 were on level with 2018 despite 2% fewer sailings. The market share was reduced in Q1 due to

dockings and a competitor's capacity increase due to the grounding of a ferry in Q1 2018.

Passenger volumes were down 15.9% due to the Easter timing difference vs 2018 and some loss of market share. The revenue per pax increased and mitigated the lower volumes.

EBIT in Q1 increased 38% to DKK 34m mainly due to higher unit revenues and lower operating costs.

Mediterranean

Freight volumes in Q1 increased by 1,014k lane metres with the expansion of the route network and a new customer agreement.

As expected, volumes were up more than 30% between Istanbul and Trieste as the new customer agreement added

volumes and recurring volumes remained stable. To accommodate the additional volumes, a new route was opened between Yalova port in Istanbul and Trieste. The first departure was on 29 December 2018.

Volumes between France and Turkey were in line with expectations and lower than last year due to the slowdown in Turkey and Europe with a larger decrease in Turkish imports compared to Turkish exports. Volumes between southeastern Turkey and Italy were also negatively impacted by the slowdown as well as developments in adjacent countries, including Syria.

Volumes were in total up 14% vs last year (when DFDS did not own U. N. Ro-Ro).

EBIT in Q1 — the seasonally weakest quarter of the year — increased to DKK 46m from DKK 3m in 2018 following the acquisition of U. N. Ro-Ro on 7 June 2018. The margin in Q1 was reduced by start-up costs and the fast ramp-up of operations for the opening of a new route between Istanbul and Trieste as well as changes in the customer mix.

Passenger

The number of passengers in Q1 was 17.7% below last year as departures were reduced by a third on Amsterdam-Newcastle as well as 3% fewer departures on Copenhagen-Oslo. One passenger ferry from Amsterdam-Newcastle was deployed as a replacement ferry in Baltic Sea for 1.5 months in the quarter. In addition, the Easter timing difference also reduced the number of passengers compared to last year.

EBIT in Q1 decreased 37% to DKK -110m due to a negative impact from the Easter timing difference and higher tonnage costs.

Non-allocated items

These items primarily include external charter activities. EBIT in Q1 decreased 10% to DKK 23m.

Ferry Division

	2019	2018*			2018-19*	2018*
DKK m	Q1	Q1	Q2	Q3	Q4	LTM	Full year
North Sea
Revenue	963	967	964	897	907	3,731	3,734
EBIT before special items	190	161	198	151	186	725	696
Invested capital	5,596	5,861	5,623	5,514	5,116	5,542	5,592
ROIC before special items, %	-	-	-	-	-	12.8	12.2
Lane metres freight, '000	3,327	3,347	3,367	3,148	3,215	13,057	13,077
Baltic Sea
Revenue	350	343	392	410	364	1,517	1,509
EBIT before special items	40	70	104	111	77	333	363
Invested capital	1,322	1,358	1,359	1,211	1,722	1,394	1,393
ROIC before special items, %	-	-	-	-	-	23.8	26.0
Lane metres freight, '000	1,187	1,102	1,182	1,148	1,143	4,660	4,575
Passengers, '000	43	36	58	83	47	231	224
Channel
Revenue	571	573	687	895	647	2,801	2,803
EBIT before special items	34	25	80	222	71	406	397
Invested capital	1,979	2,039	1,884	1,786	1,744	1,886	1,866
ROIC before special items, %	-	-	-	-	-	21.5	21.2
Lane metres freight, '000	4,902	4,896	4,995	4,906	4,866	19,669	19,663
Passengers, '000	468	556	992	1,659	644	3,762	3,850
Mediterranean
Revenue	515	31	170	443	481	1,608	1,124
EBIT before special items	46	3	29	67	83	225	182
Invested capital	9,047	123	7,436	7,468	8,517	6,518	4,732
ROIC before special items, %	-	-	-	-	-	3.4	3.8
Lane metres freight, '000	1,071	61	351	875	919	3,216	2,206
Passenger
Revenue	251	298	466	604	360	1,680	1,728
EBIT before special items	-110	-80	57	164	-25	87	116
Invested capital	704	585	501	671	780	6,518	654
ROIC before special items, %	-	-	-	-	-	13.0	17.4
Lane metres freight, '000	106	130	151	134	140	532	556
Passengers, '000	222	270	361	421	312	1,316	1,365
Non-allocated items
Revenue	107	119	110	99	154	469	481
EBIT before special items	23	27	33	26	19	101	105

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

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.

2019 Management review Ferry Logistics Reports Financials Appendix Contact Q1 Interim Report / p 16

Logistics Division Logistics Division

The division is organised in three business units:

• Nordic
• Continent
• UK & Ireland

Q1 market, activity and result trends

Nordic

The number of transported units in Q1 decreased 14.1% 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 reached peak volumes in Q1 2018. A new and similar contract with lower volumes and a duration of more than two years has been entered into. Volumes were also reduced by a lower level of specialised transports in Sweden and lower Baltic project volumes. Volumes between UK and Denmark were boosted by UK stockpiling.

EBIT decreased 40% to DKK 16m primarily due to the lower level of activity and start-up costs for a new large logistics contract in Norway based on the sideport shipping routes.

2018*
Full year
5,324
431
5
-229
207
3.9
-11
196
1,418
12.3
417.3
567.0

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

Continent

The number of transported units in Q1 decreased 5.0% adjusted for the closure of activities in Italy. Volumes in Belgium were as in Nordic reduced on account of the same large logistics contract that was jointly operated. Volumes were above last year in most other markets, of which several were positively impacted by UK stockpiling.

EBIT decreased 22% to DKK 14m mainly due to lower activity in Belgium.

UK & Ireland

The number of transported units in Q1 increased 5.3% adjusted for the closure of the Italian rail activities. All areas contributed to the volume increase, including the addition of a new large cold chain logistics contract. UK stockpiling increased activity in several areas and aquaculture volumes in Scotland were also above last year.

EBIT increased 161% to DKK 15m as almost all activities improved performance, particularly the cold chain activities in England. The result was also positively impacted by the closure of lossmaking activities.

Logistics Division

	2019	2018*			2018-19*	2018*
DKK m	Q1	Q1	Q2	Q3	Q4	LTM	Full year
Nordic
Revenue	448	517	485	413	451	1,798	1,866
EBIT before special items	16	26	27	15	22	80	90
Invested capital	454	486	421	402	465	446	456
ROIC before special items, %	-	-	-	-	-	15.4	17.8
Units, '000 **	30.3	37.6	34.7	29.6	32.7	127.4	134.6
Tons, '000	174.3	97.7	102.8	103.5	113.2	493.9	417.3
Continent
Revenue	618	626	622	598	612	2,449	2,458
EBIT before special items	14	18	22	19	8	63	67
Invested capital	655	567	572	574	596	593	545
ROIC before special items, %	-	-	-	-	-	8.7	10.0
Units, '000	62.4	66.8	68.1	62.6	64.4	257.4	261.8
UK & Ireland
Revenue	328	274	284	292	304	1,208	1,154
EBIT before special items	15	4	13	14	19	61	50
Invested capital	487	431	413	429	397	431	416
ROIC before special items, %	-	-	-	-	-	10.8	9.2
Units, '000	42.3	41.2	43.9	41.0	44.5	171.7	170.5
Non-allocated items
Revenue	62	74	57	58	54	231	244
EBIT before special items	0	0	0	0	0	0	0

* Comparative 2018 numbers are restated to IFRS 16 on a proforma and unaudited basis

** 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.

Anders Götzsche, Jens Otto Knudsen, Jill Lauritzen Melby, Jesper Hartvig Nielsen, Lars Skjold-Hansen, Marianne Dahl Steensen

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 March 2019.

The interim report, which has not 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 March 2019 and of the results of the DFDS Group's operations and cash flow for the period 1 January – 31 March 2019.

Further, in our opinion, the Management review p. 1-17 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, 9 May 2019

DFDS Group Income statement

	2019	2018*	2018-19*	2018*
DKK m Note	Q1	Q1	LTM	Full year
Revenue 3	3,870.0	3,485.0	16,102.1	15,717.1
Costs
Ship operation and maintenance	-868.1	-760.3	-3,691.1	-3,583.3
Freight handling	-637.9	-590.9	-2,494.1	-2,447.1
Transport solutions	-776.1	-819.3	-3,147.8	-3,191.0
Employee costs	-764.8	-674.5	-2,886.6	-2,796.4
Costs of sales and administration	-145.9	-186.6	-670.9	-711.6
Operating profit before depreciation (EBITDA) and special items	677.2	453.3	3,211.7	2,987.8
Share of profit/loss of associates and joint ventures	1.6	3.3	-0.9	0.8
Profit/loss on disposal of non-current assets, net	1.2	2.4	5.4	6.6
Depreciation, ships	-293.2	-184.3	-898.9	-790.0
Depreciation, other non-current assets	-152.7	-58.7	-390.0	-296.0
Impairment losses, other non-current assets	-0.6	-	-1.1	-0.6
Operating profit (EBIT) before special items	233.6	216.0	1,926.2	1,908.6
Special items, net 4	-14.9	-26.7	-37.7	-49.4
Operating profit (EBIT)	218.6	189.3	1,888.5	1,859.2
Financial income	0.9	7.9	5.5	5.6
Financial costs	-75.8	-19.7	-233.9	-170.9
Profit before tax	143.7	177.5	1,660.1	1,693.9
Tax on profit	-23.5	-20.7	-59.5	-56.7
Profit for the period	120.2	156.8	1,600.6	1,637.2
Attributable to:
Equity holders of DFDS A/S	120.0	156.2	1,593.3	1,629.5
Non-controlling interests	0.2	0.6	7.3	7.7
Profit for the period	120.2	156.8	1,600.6	1,637.2
Earnings per share
Basic earnings per share (EPS) of DKK 20, DKK	2.10	2.86	28.03	28.99
Diluted earnings per share (EPS-D) of DKK 20, DKK	2.09	2.84	27.93	28.87

DFDS Group – statement of Comprehensive income

	2019	2018*	2018-19*	2018*
DKK m	Q1	Q1	LTM	Full year
Profit for the period	120.2	156.8	1,600.6	1,637.2
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations	-0.1	0.0	121.6	121.7
Items that will not be reclassified subsequently to the Income statement	-0.1	0.0	121.6	121.7
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments:
Value adjustment for the period	101.5	75.9	346.8	321.2
Value adjustment transferred to operating costs	1.7	-0.6	-4.8	-7.1
Value adjustment transferred to financial costs	5.5	-93.0	50.7	-47.8
Value adjustment transferred to non-current tangible assets	-8.9	4.7	-34.8	-21.2
Tax on items that may be reclassified to the Income statement	0.5	0.2	-0.4	-0.7
Foreign exchange adjustments, subsidiaries	21.7	-43.6	6.7	-58.5
Items that are or may be reclassified subsequently to the Income statement	122.0	-56.3	364.3	185.9
Total other comprehensive income after tax	121.9	-56.3	485.9	307.6
Total comprehensive income	242.1	100.5	2,086.4	1,944.8
Attributable to:
Equity holders of DFDS A/S	241.5	100.0	2,078.5	1,937.0
Non-controlling interests	0.6	0.4	8.0	7.8
Total comprehensive income	242.1	100.5	2,086.4	1,944.8

DFDS GROUP - Balance sheet Assets

	2019	2018*	2018*
DKK m Note	Q1	Q1	Full year
Goodwill	3,340.2	572.8	3,337.0
Other non-current intangible assets	1,196.5	39.1	1,205.2
Software	243.1	237.3	244.6
Development projects in progress	3.7	10.2	1.6
Non-current intangible assets	4,783.5	859.4	4,788.4
Land and buildings	167.0	163.6	162.7
Terminals	756.3	475.1	1,434.3
Ships	10,320.1	7,425.1	9,731.1
Equipment, etc.	716.8	694.6	740.4
Assets under construction and prepayments	872.5	303.6	1,021.0
Right-of-use assets 5	3,398.1	-	-
Non-current tangible assets	16,230.8	9,061.9	13,089.4
Investments in associates, joint ventures and securities	44.5	44.9	43.3
Receivables	26.3	135.7	137.6
Prepaid costs	91.6	0.0	91.5
Deferred tax	75.9	65.0	70.0
Derivative financial instruments	212.3	21.3	175.0
Other non-current assets	450.7	266.9	517.4
Non-current assets	21,465.0	10,188.3	18,395.2
Inventories	208.4	148.9	200.5
Trade receivables	2,412.5	1,896.2	2,077.0
Receivables from associates and joint ventures	82.4	71.8	85.6
Other receivables	479.3	129.5	296.5
Prepaid costs	275.1	134.1	259.4
Derivative financial instruments	119.6	4.5	56.6
Cash	506.4	591.1	760.7
Current assets	4,083.8	2,976.1	3,736.4
Assets	25,548.9	13,164.4	22,131.5

Equity and liabilities

	2019	2018*	2018*
DKK m Note	Q1	Q1	Full year
Share capital	1,172.6	1,140.0	1,172.6
Reserves	-129.5	-512.1	-250.9
Retained earnings	7,919.4	5,722.7	8,018.6
Proposed dividends	0.0	0.0	234.5
Equity attributable to equity holders of DFDS A/S	8,962.5	6,350.7	9,174.8
Non-controlling interests	79.2	48.6	79.7
Equity	9,041.7	6,399.3	9,254.5
Interest-bearing liabilities 5	10,701.8	2,974.4	8,388.9
Deferred tax	213.5	200.4	210.7
Pension and jubilee liabilities	271.2	379.7	263.5
Other provisions	16.1	42.3	17.0
Derivative financial instruments	47.8	93.7	74.3
Non-current liabilities	11,250.5	3,690.5	8,954.3
Interest-bearing liabilities 5	1,789.0	235.4	868.5
Trade payables	2,460.7	1,866.5	2,296.4
Payables to associates and joint ventures	27.3	37.4	23.7
Other provisions	33.4	64.2	49.9
Corporation tax	32.0	22.4	23.4
Other payables	579.1	536.9	469.8
Derivative financial instruments	15.3	49.3	20.4
Prepayments from customers	319.8	262.5	170.6
Current liabilities	5,256.7	3,074.6	3,922.7
Liabilities	16,507.1	6,765.1	12,877.1
Equity and liabilities	25,548.9	13,164.4	22,131.5

DFDS GROUP - Statement of changes in equity 1 January - 31 March 2019

		Reserves
						Equity attributable to equity	Non
Share	Translation	Hedging	Treasury	Retained	Proposed	holders	controlling
DKK m capital	reserve	Reserve	shares	earnings	dividends	of DFDS A/S	interests	Total
Equity at 1 January 2019 1,172.6	-398.4	176.8	-29.3	8,018.6	234.5	9,174.8	79.7	9,254.5
Change in accounting policies*				-231.1		-231.1	-1.0	-232.1
Restated equity at 1 January 2019 1,172.6	-398.4	176.8	-29.3	7,787.5	234.5	8,943.8	78.6	9,022.4
Comprehensive income for the period
Profit for the period				120.0		120.0	0.2	120.2
Other comprehensive income
Items that will not be reclassified subsequently to the Income statement:
Remeasurement of defined benefit pension obligations				-0.1		-0.1		-0.1
Items that will not be reclassified subsequently to the Income statement 0.0	0.0	0.0	0.0	-0.1	0.0	-0.1	0.0	-0.1
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments for the period		101.5				101.5		101.5
Value adjustment transferred to operating costs		1.7				1.7		1.7
Value adjustment transferred to financial costs		5.5				5.5		5.5
Value adjustment transferred to non-current tangible assets		-8.9				-8.9		-8.9
Tax on items that will be reclassified to the Income statement				0.5		0.5		0.5
Foreign exchange adjustments, subsidiaries	21.3					21.3	0.4	21.7
Items that are or may be reclassified subsequently to the Income statement 0.0	21.3	99.8	0.0	0.5	0.0	121.6	0.4	122.0
Total other comprehensive income after tax 0.0	21.3	99.8	0.0	0.4	0.0	121.5	0.4	121.9
Total comprehensive income 0.0	21.3	99.8	0.0	120.4	0.0	241.5	0.6	242.1
Transactions with owners
Acquisition, non-controlling interests				0.0		0.0	0.0	0.0
Dividend paid					-229.0	-229.0		-229.0
Dividend on treasury shares				5.6	-5.6	0		0.0
Vested share-based payments				4.8		4.8		4.8
Cash from sale of treasury shares related to exercise of share options			0.3	1.8		2.1		2.1
Other adjustments				-0.7		-0.7		-0.7
Transactions with owners Q1 2019 0.0	0.0	0.0	0.3	11.5	-234.5	-222.7	0.0	-222.8
Equity at 31 March 2019 1,172.6	-377.2	276.6	-28.9	7,919.4	0.0	8,962.5	79.2	9,041.7

* Impact from implementation of IFRS 16, reference is made to note 5

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

		Reserves
DKK m	Share	Translation	Hedging	Revaluation of	Treasury	Retained	Proposed	Equity attributable to equity holders	Non 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*				-0.1		0.1		0.0		0.0
Restated equity at 1 January 2018	1,140.0	-339.7	-68.4	0.0	-47.0	5,651.7	228.0	6,564.6	49.0	6,613.7
Comprehensive income for the period
Profit for the period						156.2		156.2	0.6	156.8
Other comprehensive income
Items that are or may be reclassified subsequently to the Income statement:
Value adjustment of hedging instruments for the period			75.9					75.9		75.9
Value adjustment transferred to operating costs			-0.6					-0.6		-0.6
Value adjustment transferred to financial costs			-93.0					-93.0		-93.0
Value adjustment transferred to non-current tangible assets			4.7					4.7		4.7
Tax on items that will be reclassified to the Income statement						0.2		0.2		0.2
Foreign exchange adjustments, subsidiaries		-43.4						-43.4	-0.1	-43.6
Items that are or may be reclassified subsequently to the Income statement	0.0	-43.4	-13.0	0.0	0.0	0.2	0.0	-56.2	-0.1	-56.3
Total other comprehensive income after tax	0.0	-43.4	-13.0	0.0	0.0	0.2	0.0	-56.2	-0.1	-56.3
Total comprehensive income	0.0	-43.4	-13.0	0.0	0.0	156.5	0.0	100.0	0.4	100.5
Transactions with owners
Acquisition, non-controlling interests						0.6		0.6	-0.9	-0.2
Dividend paid							-218.9	-218.9		-218.9
Dividend on treasury shares						9.1	-9.1	0.0		0.0
Vested share-based payments						6.0		6.0		6.0
Purchase of treasury shares					-9.3	-151.4		-160.7		-160.7
Cash from sale of treasury shares related to exercise of share options					8.8	50.2		59.0		59.0
Other adjustments						0.0		0.0		0.0
Transactions with owners Q1 2018	0.0	0.0	0.0	0.0	-0.6	-85.5	-228.0	-314.0	-0.9	-314.9
Equity at 31 March 2018	1,140.0	-383.2	-81.4	0.0	-47.5	5,722.7	0.0	6,350.7	48.6	6,399.3

* 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 cash flows

	2019	2018*	2018-19*	2018*
DKK m	Q1	Q1	LTM	Full year
Operating profit before depreciation (EBITDA) and special items	677.2	453.3	3,211.7	2,987.8
Cash flow effect from special items related to operating activities	-22.8	-11.0	-111.4	-99.5
Adjustments for non-cash operating items, etc.	9.5	2.3	27.3	20.1
Change in working capital	58.7	-57.9	-166.2	-282.8
Payment of pension liabilities and other provisions	-29.9	-14.0	-56.6	-40.7
Cash flow from operating activities, gross	692.7	372.7	2,904.9	2,584.9
Interest received, etc.	2.0	5.1	5.5	5.4
Interest paid, etc.	-46.7	-14.2	-268.6	-232.9
Taxes paid	-19.8	-28.5	-60.1	-68.8
Cash flow from operating activities, net	628.1	335.0	2,581.7	2,288.6
Investments in ships including dockings, rebuildings and ships under construction (incl. settlement of forward exchange contracts) related thereto	-596.8	-137.4	-1,393.4	-934.0
Sale of ships	0.0	0.0	83.7	83.7
Investments in other non-current tangible assets	-216.2	-30.2	-492.2	-306.3
Sale of other non-current tangible assets	5.2	5.7	16.0	16.4
Investments in non-current intangible assets	-13.5	-6.5	-36.4	-29.5
Acquisition of enterprises, associates, joint ventures and activities	0.0	-69.6	-3,565.5	-3,635.2
Sale of activities etc.	0.0	0.6	1.4	1.9
Other investing cash flows	3.2	2.2	2.0	1.1
Cash flow to/from investing activities, net	-818.0	-235.3	-5,384.5	-4,801.9
Cash flow before financing activities, net	-189.9	99.7	-2,802.9	-2,513.3
Proceed from bank loans and loans secured by mortgage in ships	370.6	0.0	6,649.5	6,278.8
Repayment and instalments of bank loans and loans secured by mortgage in ships	-47.8	-18.4	-1,319.8	-1,290.4
Repayment of corporate bonds incl. settlement of cross currency swap	0.0	-202.8	0.0	-202.8
Change in other non-current investments, net	0.0	0.4	0.0	0.4
Payment of loan in acquired entity	0.0	0.0	-2,756.3	-2,756.3
Payment of finance lease liabilities (IAS 17 leases)	-	-0.5	-452.3	-452.8
Payment of lease liabilities	-160.4	-	-160.4	-
Acquisition of treasury shares	0.0	-160.7	-29.5	-190.2
Cash received from exercise of share options	2.1	59.0	2.4	59.2
Government grants received related to purchase of assets	0.0	0.0	7.3	7.3
Other financing cash flows	0.0	-0.2	7.6	7.3
Proceed from increase of share capital	0.0	0.0	1,000.0	1,000.0
Dividends paid	-229.0	-218.9	-229.0	-218.9
Cash flow to/from financing activities, net	-64.5	-542.2	2,719.3	2,241.7
Net increase (decrease) in cash and cash equivalents	-254.4	-442.5	-83.6	-271.6
Cash and cash equivalents at beginning of period	760.7	1,033.2	591.1	1,033.2
Foreign exchange and value adjustments of cash and cash equivalents	0.2	0.4	-1.1	-0.9

* Comparative 2018 numbers are not restated to IFRS 16

** At 31 March 2019 DKK 43.2m (31 March 2018: DKK 0.1m) 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 2018 except as described below.

Implementation of new or changed accounting standards and interpretations

DFDS has adopted IFRS 16 – "Leases" 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 2019. Of the standards and interpretations implemented only IFRS 16 - "Leases" has had material impact on the Group's Financial Statements. The impact of implementing IFRS 16 is further described in note 5.

Note 2 Segment Information

	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
Q1 2019
External revenue	2,524.7	1,340.5	4.8	3,870.0
Intragroup revenue	189.4	7.5	129.8	326.7
Total revenue	2,714.0	1,348.0	134.6	4,196.7
Operating profit (EBITDA) before special items	583.7	109.0	-15.5	677.2
Operating profit (EBIT) before special items	223.5	45.0	-34.9	233.6
Operating profit after special items (EBIT)	223.5	44.6	-49.4	218.6
Invested capital, average	17,697.0	1,429.4	406.8	19,533.1

	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
Q1 2018*
External revenue	2,100.9	1,377.5	6.6	3,485.0
Intragroup revenue	199.7	8.0	115.2	322.9
Total revenue	2,300.6	1,385.5	121.8	3,807.9
Operating profit (EBITDA) before special items	387.7	80.6	-15.0	453.3
Operating profit (EBIT) before special items	194.1	48.1	-26.2	216.0
Operating profit after special items (EBIT)	193.1	31.4	-35.2	189.3
Invested capital, average	8,176.5	1,185.9	-230.7	9,131.8

Note 3 Revenue

	Q1 2019
	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
Geographical markets
North Sea	1,117.6	-	0.0	1,117.6
Baltic Sea	334.4	-	0.0	334.4
English Channel	560.8	-	0.0	560.8
Mediterranean	511.8	-	0.0	511.8
Continent	-	605.2	0.0	605.2
Nordic	-	426.8	0.0	426.8
UK/Ireland	-	308.5	0.0	308.5
Other	0.0	0.0	4.8	4.8
Total	2,524.6	1,340.5	4.8	3,870.0

Product and services

Total	2,524.6	1,340.5	4.8	3,870.0
Agency and other revenue	62.6	5.1	4.7	72.3
Charters	87.8	0.0	0.0	87.8
Terminal services	154.1	8.4	0.1	162.6
Passenger seafare and on board sales	368.9	0.0	0.0	368.9
Transport solutions	4.5	1,289.4	0.0	1,293.9
Seafreight and shipping logistics solutions	1,846.8	37.7	0.0	1,884.5

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 (4.6% of total revenue) is recognised at "a point in time".

Revenue from leasing activities (2.4% 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.

	Q1 2018
	Ferry	Logistics	Non
DKK m	Division	Division	allocated	Total
Geographical markets
North sea	1,183.8	-	0.0	1,183.8
Baltic sea	323.6	-	0.0	323.6
English Channel	493.7	-	0.0	493.7
Mediterranean	99.8	-	0.0	99.8
Continent	-	579.6	0.0	579.6
Nordic	-	545.7	0.0	545.7
UK/Ireland	-	252.2	0.0	252.2
Other	0.0	0.0	6.6	6.6
Total	2,100.9	1,377.5	6.6	3,485.0

Product and services Seafreight and shipping logistics solutions 1,405.5 24.3 0.0 1,429.8

Total	2,100.9	1,377.5	6.6	3,485.0
Agency and other revenue	78.5	6.8	6.6	91.9
Charters	109.9	0.0	0.0	109.9
Terminal services	88.8	8.8	0.0	97.6
Passenger seafare and on board sales	415.1	0.0	0.0	415.1
Transport solutions	3.1	1,337.6	0.0	1,340.7

Note 4 Special items

	2019	2018
DKK m	Q1	Q1
Adjustment of earn-out to the sellers regarding the acquisition of Alphatrans Group B.V. acquired in 2018	-0.4	0.0
Accounting gain and cost, net related to divestment of Italian rail business	-	-15.0
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	-4.7	-4.9
Costs related to restructuring of headquarter functions	-	-6.8
Costs related to the acquisition and subsequent integration of U.N. Ro-Ro etc.	-9.8	-
Special items, net	-14.9	-26.7

Note 5 Right-of-use assets

	Land &		Ferries and	Equipment
DKK m	Buildings	Terminals	other ships	etc.	Total
Cost at 1 January 2019	0.0	0.0	0.0	0.0	0.0
Foreign exchange adjustments	0.4	17.7	0.3	3.1	21.5
Change in accounting policy	125.8	1,563.7	702.9	137.0	2,529.4
Additions	111.0	30.0	71.5	41.7	254.2
Disposals	0.0	0.0	0.0	-4.7	-4.7
Reclassification of IAS 17 leases	0.0	711.0	0.0	93.5	804.5
Cost at 31 March 2019	237.2	2,322.4	774.7	270.7	3,605.0
Depreciation and impairment
losses at 1 January 2019	0.0	0.0	0.0	0.0	0.0
Foreign exchange adjustments	0.0	0.4	0.1	1.6	2.1
Depreciation charge	17.7	39.7	91.3	21.2	169.8
Disposals	0.0	0.0	0.0	-3.9	-3.9
Reclassification of IAS 17 leases	0.0	0.0	0.0	38.9	38.9
Depreciations and impairment
losses 31 March 2019	17.7	40.1	91.3	57.8	206.9
Carrying amount at 31 March
2019	219.5	2,282.4	683.4	212.9	3,398.1
Weighted average incremental
borrowing rate	2.1%	3.0%	1.7%	1.8%

IFRS 16 has been implemented as of 1 January 2019. The standard supersedes existing leases guidance, including IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a lease, SIC-15 Operating leases - incentives and SIC 27 Evaluating the Substance of Transactions involving the Legal Form of a lease.

Implementation of IFRS 16 has had a material effect on DFDS's financial statements as most contracts previously classified as off-balance operating leases under IAS 17 have now been capitalised, recognising right-of-use assets and lease liabilities similar to previous practices for financial lease.

Consequently, IFRS 16 has effect on the Income statement since the lease payment will be split into interest and depreciation of the right-of-use assets. Reported operating profit before depreciations (EBITDA) and special items has increased, as previous operating lease expenses included under cost have been replaced by depreciations and interest expenses. However, the impact on profit for the period is neutral over time, but a timing effect does occur due to frontloading of interest expenses.

Reported cash flow from operating activities has increased but is offset by an increased cash outflow from financing activities. Accordingly, total cash flow for the period is unchanged.

The Group adopted IFRS 16 using the modified retrospective approach according to which comparative figures are not restated but presented in accordance with the previous IFRS standard on leases (IAS 17 and IFRIC 4) as disclosed in the Annual report 2018. Right-of-use assets have been presented as separate line-items in the balance sheet.

For existing leases classified as operating leases under IAS 17, except from terminals and ferries, lease liabilities have been measured at the present value of the remaining lease payments discounted using an appropriate incremental borrowing rate at 1 January 2019. Right of-use-assets for terminals and ferries have been measured as if IFRS 16 had been applied since the lease commencement date and discounted using an appropriate incremental borrowing rate at 1 January 2019.

For existing leases classified as finance leases under IAS 17, the carrying amount of lease liabilities and right-of-use assets at 1 January 2019 equals the carrying amount of lease liabilities and lease assets at 31 December 2018.

The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4, at the date of initial application. Further, the Group also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less for all classes of underlying assets except for ferries and other ships, and the exemption for lease contracts for which the underlying asset is of low value ('low-value assets').

Finally, in terms of non-lease components (often referred to as "service-element") the Group will for all classes of underlying assets - except for terminals - elect to use the practical expedient in the standard according to which, it can be elected not to separate non-lease components from lease components, implying that the lease component and the non-lease component will be accounted for as a single component and thereby form part of the rightof-use asset and financial lease liability recognised in the balance sheet.

Impact on the Balance sheet as at 31 December 2018:

DKK m
Assets
Terminals (Finance lease)	-711.0
Equipment, etc. (Finance lease)	-54.6
Right-of-use assets	3,295.0
Deferred tax assets	3.8
Total assets	2,533.2
Equity
Retained earnings	-231.1
Non-controlling interests	-1.0
Total equity	-232.1
Liabilities
Finance lease liabilities (Interest-bearing liabilities)	-292.3
Lease liabilities (Interest-bearing liabilities)	3,057.6
Total liabilities	2,765.3
Equity and liabilities	2,533.2

Impact on the Income statement for Q1 2019:

DKK m
Ship operation and maintenance	97.1
Freight handling	43.3
Transport solutions	12.7
Costs of sales and administration	22.0
Operating profit before depreciation (EBITDA) and special items	175.0
Depreciation, ships	-91.3
Depreciation, other non-current assets	-67.7
Operating profit (EBIT)	16.0
Financial costs	-18.7
Profit before tax	-2.7
Tax on profit	0.3
Profit for the period	-2.4

Attributable to:

Profit for the period	-2.4
Non-controlling interests	-0.3
Equity holders of DFDS A/S	-2.2

Impact on the Statement of cash flows for Q1 2019:

DKK m
Net cash flows from operating activities, gross	175.0
Interest paid, etc	-18.7
Net cash flows from operating activities, net	156.3
Net cash flows from financing activities	-156.3
Net increase/decrease in cash flows	0.0

Invested capital increased from DKK 17,908m at 31 December 2018 to DKK 21,159m at 31 March 2019, of which DKK 2,533.2m relates to right-of-use assets.

Net interest-bearing debt increased from DKK 8,513m at 31 December 2018 to DKK 11,979m at 31 March 2019, of which DKK 2,765m relates to lease liabilities.

Differences between the operating lease commitments at 31 December 2018 disclosed in the Annual report and lease liabilities recognised in the opening balance at 1 January 2019 in accordance with IFRS 16 can be specified as follows:

DKK m

Operating lease commitments (not discounted) disclosed in the notes at 31 December 2018	3,132.0
Finance lease liabilities recognised in the balance sheet as at 31 December 2018	292.3
Short-term leases to be recognised on a straight-line basis as expenses under IFRS 16	-20.0
Low-value leases to be recognised on a straight-line basis as expenses under IFRS 16	-5.4
Adjustments at initial recognition (different treatment of extension options,
indexation rates etc.	91.9
Discounting effect	-433.1
Lease liabilities recognised at 1 January 2019	3,057.6

Summary of new accounting policies

The right-of-use asset and corresponding lease liability will be recognised at the commencement date, i.e. the date the underlying asset is ready for use. Right-of-use assets are measured at cost corresponding to the lease liability recognised, adjusted for any lease prepayments including dismantling and restoration costs. The lease liabilities are measured at the present value of lease payments to be made over the lease term. The lease payments are discounted using DFDS incremental borrowing rate.

Depreciations are done following the straight-line method over the lease term or the useful life of the right-of-use assets, whichever is shortest.

The lease payments include fixed payments less any lease incentives receivable and variable lease payments that depend on an index or a rate. If the contract holds an option to purchase, extent or terminate a lease and it is reasonably certain to be exercised by the Group, the lease payments will include those. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs.

The Group applies the short-term lease recognition exemption for lease contracts that, at the commencement date, have a lease term of 12 months or less for all classes of underlying assets except for ferries and other ships, and the exemption for lease contracts for which the underlying asset is of low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

For all classes of assets, except for terminals, non-lease components, i.e. service element, will not be separated from the lease components and thereby form part of the right-of-use asset and financial lease liability recognised in the balance sheet.

Right-of-use assets classified as Land & buildings, terminals, Ferries and other ships, equipment and other assets normally have the following lease terms:

Land & buildings	3 years
Terminals	10 - 35 years
Ferries and other ships	3 months – 10 years
Equipment	3-5 years
Other assets	1-3 years

Note 6 Acquisition of enterprises and sale of activities

There has been no acquisitions or disposals of enterprises or activities in 2019.

The purchase price allocation for U.N. Ro-Ro (acquired 7 June 2018) is still preliminary, but unchanged compared to 31 December 2018. For further details of the acquisition, refer to the annual report for 2018.

Note 7 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 2019.

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.

	Q1 2019		Q1 2018
DKK m	Fair value	Carrying amount	Fair value	Carrying amount
Financial assets
Derivatives (Level 2)	331.9	331.9	25.8	25.8
Securities (Level 3)	9.5	9.5	9.5	9.5
Financial liabilities
Derivatives (Level 2)	63.1	63.1	143.0	143.0

Note 8 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 2018. 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 2019, including IFRS 16. For further description reference is made to note 1 Accounting policies and note 5 Right-of-use assets.

The Parent Company's revenue decreased by DKK 31.4m, equivalent to 1.4%. Operating profit before depreciation and special items (EBITDA) increased from DKK 222.7m to DKK 485.1m, equivalent to an increase of 117.8%. The increase is mainly explained by the implementation of IFRS 16. The impact from IFRS 16 amounts to DKK 300.4m.

Profit before tax decreased from DKK 91.3m in 2018 to DKK 34.0m in 2019.

The Parent Company's net interest-bearing debt increased from DKK 2,394.7m at 31 December 2018 to DKK 4,148.8m at 31 March 2019 of which DKK 1,711.9m is lease liabilities relating to IFRS 16.

	2019	2018*	2018-19*	2018*
DKK m	Q1	Q1	LTM	Full year
Income statement
Revenue	2,193.8	2,225.2	9,823.0	9,854.3
Operating profit before depreciation (EBITDA) and
special items	485.1	222.7	1,932.6	1,670.3
Operating profit (EBIT) before special items	70.4	102.3	1,165.8	1,197.7
Special items, net	-24.5	-5.6	-22.8	-3.9
Operating profit (EBIT)	45.9	96.7	1,143.0	1,193.8
Financial items, net	-11.9	-5.4	1,339.6	1,346.0
Profit before tax	34.0	91.3	2,482.6	2,539.9
Profit for the period	30.9	91.2	2,477.2	2,537.5
Assets
Non-current intangible assets	352.4	363.4		351.2
Non-current tangible assets	4,552.7	4,288.9		4,651.2
Right of use assets	1,685.4	-		-
Investments in affiliated companies, associates and
joint ventures	5,862.3	3,954.6		5,862.2
Other non-current assets	750.1	142.0		278.5
Non-current assets	13,202.8	8,749.0		11,143.1
Current receivables from affiliated companies	1,092.0	958.6		981.2
Receivables from associates and joint ventures	65.7	53.5		70.2
Cash	344.3	447.8		580.6
Other current assets	1,473.7	1,075.6		1,112.1
Current assets	2,975.8	2,535.5		2,744.0
Assets	16,178.6	11,284.5		13,887.2
Equity and liabilities
Equity	8,300.4	4,719.2		8,416.7
Non-current liabilities	2,410.5	2,446.7		1,765.0
Current liabilities to affiliated companies	1,750.5	2,508.4		1,586.0
Other current liabilities	3,717.3	1,610.1		2,119.5
Current liabilities	5,467.8	4,118.6		3,705.5
Equity and liabilities	16,178.6	11,284.5		13,887.2
Equity ratio, %	51.3%	41.8%		60.6%
Net interest-bearing debt	4,148.8	3,602.5		2,394.7

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.

Q1 Interim Report

Appendix RESTATEMENT OF 2018 ACCORDING TO IFRS 16 ON LEASES

2019

With effect from 1 January 2019, DFDS has implemented the new IFRS accounting standard on leases – IFRS 16. This requires almost all lease contracts, including operating leases, to be recognised in the balance sheet.

2019 Management review Ferry Logistics Reports Financials Appendix Contact Q1 Interim Report / p 33

Since the Group decided to adopt the modified retrospective approach according to which comparative figures are not restated, a pro forma unaudited restatement for 2018 have been prepared for the Group to provide comparison figures for 2019, which is enclosed in this appendix.

The pro forma unaudited restatement has been made as IFRS 16 had effect from 1 January 2018 and with the contract portfolio in force at that time. The same transition rules as described in Note 5 in the Q1 2019 Interim Report have been applied.

DFDS Group

	Q1 2018				Q2 2018			Q3 2018			Q4 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
		unaudited	Pro forma Pro forma unaudited		unaudited	Pro forma Pro forma unaudited		unaudited	Pro forma Pro forma unaudited		unaudited	Pro forma Pro forma unaudited		unaudited	Pro forma Pro forma 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

RT DEDS 2019

2019 Management review Ferry Logistics Reports Financials Appendix Contact Q1 Interim Report / p 38

DFDS A/S

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

9 May 2019 Company announcement no.: 13/2019

Contact

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 2.3bn.

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.