DFDS — M&A Activity 2018

Jun 7, 2018

COMPANY ANNOUNCEMENT

DFDS

ACQUISITION OF U.N. RO-RO COMPLETED

• Closing completed earlier than expected
• Integration to start immediately
• Integration process expected to be completed by end of the year
• New Mediterranean business unit established

DFDS has today closed the acquisition of 98.8% of U.N. Ro-Ro, Turkey's largest operator of freight ferry routes connecting Europe and Turkey.

"We are now ready to start the integration of U.N. Ro-Ro after having closed the transaction earlier than expected. The integration plan has been developed and completed in co-operation with our new colleagues. This collaboration has confirmed our excitement and belief in joining our networks to provide new opportunities for, not least, customers and employees", says Niels Smedegaard, CEO of DFDS.

The acquisition expands DFDS' route network to include the fast growing transport market between Turkey and EU. U.N. Ro-Ro's business model of carrying un-accompanied freight units, mainly trailers, on freight ferries (ro-ro) between Turkey and EU is identical to DFDS' North Sea business model.

U.N. Ro-Ro operates five freight ferry routes connecting Turkey with Italy and France facilitating trade between Turkey and EU. The routes deploy 12 owned freight ferries and two port terminals are owned and operated, in respectively Istanbul and Trieste. Intermodal solutions in Europe are also provided to customers. For 2018, revenue of EUR 240m and EBITDA of EUR 97m are expected. The company has 650 employees.

Approvals granted

The transaction was subject to approval by the Turkish, Austrian and German competition authorities as well as Italian authorities in relation to the transfer of the Trieste terminal as a strategic asset. All approvals have been granted.

Management and integration

U.N. Ro-Ro is managed by a very competent and experienced management team that will continue to manage operations under the leadership of Selçuk Boztepe, CEO of U.N. Ro-Ro and henceforth Head of a new Mediterranean business unit.

An integration plan to extract synergies and align the two organisations has been completed and the integration process starts today. The plan includes three key focus areas with a total of 18 workstreams:

• Commercial: Sales and customers, development of transport solutions for joint network, branding
• Platforms: IT and digital, port terminals and marine standards
• Support: Finance, procurement and HR

The integration is expected to be completed by the end of the year.

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

www.dfds.com

Company announcement no. 44/2018

7 June 2018

Page 1/2

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 Jacobsen, Communications
+45 33 42 32 97

About DFDS

DFDS provides shipping and transport services in Europe and Turkey, generating annual revenues of EUR 2.2bn.

To over 8,000 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 ships and in offices across 20 countries. DFDS was founded in 1866, is headquartered in Copenhagen, and listed on NASDAQ Copenhagen.

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.

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Announcement no. 44/2018
7 June 2018
Page 2 of 2

The integration will, in addition, establish a platform to develop and pursue business development opportunities. Synergies are also expected from the enhanced fleet allocation flexibility due to a larger combined fleet.

Integration costs will be reported in the income statement as Special items as they are incurred.

Reporting and business unit structure

U.N. Ro-Ro will be consolidated in the DFDS Group as per today.

A new business unit named 'Mediterranean' will be established comprising all Mediterranean ferry activities, including the existing route between Marseille and Tunis.

The existing business unit France & Mediterranean will thus be discontinued and the other route of this business unit between Newhaven and Dieppe will be transferred to the Channel business unit.

New comparison figures for the affected business units will be released in advance of the Q2 report scheduled for release on 16 August 2018.