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DFDS annual report 2009 FOREWORD 7
ROUGH WATERS
AND EXPANSION
We achieved a result for 2009 among the best in the
sector, and we took a decisive step towards our vision
of a European, sea-based transport network.
Early in 2009, when it became clear that the global recession would
inevitably cause a significant decline in financial performance, we set
ourselves the financial goal of achieving one of the best results in
the sector. As a result of a great team effort, a number of significant
operational adjustments and DFDS’ strategically solid market position
in Northern Europe, we have met this goal.
Rough waters
Our business model was challenged in 2009 by the historically steep
decline in freight volume at the start of the year caused by the
recession. In all material respects, our strategy and business model
have been validated. This applies to the value of a network of routes
that reduces the vulnerability of each individual activity, and also to
integrated passenger and freight routes. It applies to our capacity to
secure freight volumes through long-term industrial contracts and our
own trailer business, plus the insight and understanding of the freight
market that follows. On top of this comes our focus on creating value
for freight customers through solutions that cuts across business areas.
Finally, our increasingly integrated management model has ensured an
effective implementation of operational adjustments.
However, the recession has also raised questions about the flexibility
of our tonnage. Our business model must be able to handle the
sudden fluctuations that undoubtedly from time to time will impact
the market. One priority is to optimise our ability to plan and manage
the balance between owned and chartered tonnage, particularly with
regard to the flexibility from timing of the return or extension of
chartered tonnage.
Bent Østergaard
CHAIRMAN OF THE BOARD
NIELS SMEDEGAARD
PRESIDENT AND CEO
Expansion
DFDS’ network strategy is the driving force behind the acquisition of
Norfolkline. This acquisition will enable us to achieve significant economies
of scale and make progress toward our vision of a European, seabased
transport network. The merger of our companies will generate
significant synergies, and we expect that the transaction will enhance
our profitability as soon as the market recovers. The acquisition is still
subject to approval by the relevant competition authorities.
Thank you!
An unusually low degree of visibility characterised 2009, and a degree
of uncertainty still surrounds the future economic outlook. In this
situation, we are therefore particularly grateful for the loyalty and
perseverance of our staff, customers, shareholders and other partners.