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DFDS annual report 2009 Financial review 51
DFDS Group 2008 2009
DKK miLLION Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Revenue 1,944 2,209 2,259 1,782 8,194 1,431 1,648 1,819 1,657 6,555
Operating profit before depreciation
(EBITDA) 139 293 393 186 1,011 78 233 317 158 786
Associates 1 1 1 1 4 0 1 1 -1 1
Profit/loss on disposal of tangible assets 0 33 3 9 45 3 8 1 6 18
Depreciation -142 -144 -142 -165 -593 -135 -159 -144 -193 -631
Operating profit (EBIT) -2 183 255 31 467 -54 83 175 -30 174
Operating profit margin (EBIT), % -0.1 8.3 11.3 1.7 5.7 -3.8 5.0 9.6 -1.8 2.7
Profit before tax -58 127 193 -41 221 -105 32 149 -56 20
Invested capital, average 7,882 7,770 7,692 7,445 7,663 7,326 7,705 8,055 8,095 7,762
Return on invested capital (ROIC) p.a., % -0.1 8.3 12.8 2.5 5.9 -2.7 4.0 8.4 -1.4 2.1
At business-area level, most of the decline in EBITDA was attributable
to Ro-Ro Shipping and Container Shipping, with results down
DKK 265 million (-34 %) and DKK 76 million (-94 %) respectively. The
significant deterioration in Ro-Ro Shipping’s financial performance in
2009 is attributed to a combination of lower volumes and rates in
more or less every part of the route network on the one hand, and to
a high proportion of fixed costs on the other. The latter implies a high
profit sensitivity to lower revenue. The downturn in Container Shipping
was also due to lower volumes and rates, although more particularly
from the paper industry and the operation of small bulk carriers. The
market for the latter activity was significantly impacted by the recession
in 2009, and substantial losses were incurred as a result. Also included
in Container Shipping is a one-off cost of DKK 27 million from the
cancellation of charter contracts, cf. above.
Passenger Shipping’s EBITDA improved by 62 % or DKK 120 million
to DKK 314 million in 2009. This improvement partly reflects the fullyear
effect of the restructuring work of Project Lighthouse implemented
in 2008, improved operations on the Amsterdam-Newcastle route,
and lower bunker costs.
Terminal Services’ EBITDA improved by DKK 17 million to DKK -14
million in 2009. Adjusted for a provision for business rates in England
of DKK 25 million in 2008, the result was down by DKK 8 million.
Operations at the largest terminal, Immingham, were rationalised in
2009, but the improvements were offset by lower activity. The results
for the other terminals in 2009 were also weakened by lower activity.
Trailer Services’ EBITDA improved by DKK 5 million to DKK 36
million, which can be attributed to the progress of the Belgian subsidiary
in particular, but also to subsidiaries in the Netherlands, Germany and
Great Britain. However, these results were offset by a downturn in the
Swedish subsidiary due to lower activity and increased costs due to
traffic imbalances.
The cost of non-allocated items rose by DKK 19 million to DKK 74
million. The increase was mainly due to transaction costs related to the
expected acquisition of Norfolkline.
Profit/loss on sale of assets
Profit and loss from the sale of tangible assets was DKK 18 million, of
which DKK 9 million was related to the early return of three financially
leased sideport ships, and DKK 9 million to profits from the sale of
cargo carrying equipment.
DFDS GROUP – EBITDA
PER QUARTER
(DKK MILLION)
REVENUE AND
INVESTED CAPITAL
(DKK BILLION)
TIMES
FREE CASH FLOW
(DKK MILLION)
CAPITAL STRUCTURE
(%-SHARE OF CAPITAL)
500
12
1,2
1.200
100
400
300
10
8
1,0
0,8
1.000
800
600
400
75
6
0,6
200
50
200
100
4
2
0,4
0,2
0
-200
-400
-600
25
0
0
0
-800
0
1. KVT.
2. KVT.
3. KVT.
4. KVT.
2005
2006
2007
2008
2009
2005
2006
2007
2008
2009
2005
2006
2007
2008
2009
2007 2008 2009
REVENUE
AVERAGE INVESTED
CAPITAL
TURNOVER RATE,
INVESTED CAPITAL
EQUITY AND
DEFERRED TAX
NET INTEREST-
BEARING DEBT