HALF-YEAR REPORT 2008

26 August 2008

26 August 20082 Half-year report 2008

DIFFICULT MARKET CONDITIONS& HIGH OIL PRICES

• Half-year profit impacted by:• Difficult market conditions• High oil prices• Restructurering costs

• H1 Revenue growth of 4% to DKK 4.2 bill.

• H1 EBITDA reduced by 28% to DKK 434 mill.

• H1 Pre-tax profit reduced by 62% to DKK 68 mill.

• H1 free cash flow of DKK 333 mill.

• Activities are being adjusted to the change in market conditions

Pre-tax profit, H1

0

50

100

150

200

2006 2007 2008

DK

K m

ill.

EBITDA, H1

0

100

200

300

400

500

600

700

2006 2007 2008

DK

K m

ill.

26 August 20083 Half-year report 2008

BACKGROUND FOR CHANGE IN PROFIT EXPECTATIONANNOUNCED 14 AUGUST

• Increasingly difficult market conditions:• Lower market growth than expected leading to overcapacity and more competitive pressure in certain markets• Largest impact on east-west freight flows in Baltic area and Irish-Continental market• Large increase in haulage costs from rise in fuel costs• About 50% of the profit adjustment can be attributed to the change in market conditions

• Higher bunker cost:• Total bunker cost for 2008 set to rise by DKK 400 mill.• Overall high level of coverage for freight activities, less coverage for passenger activities• Approx. a third of profit adjustment due to expected increase in bunker cost

• Restructuring costs:• Increase in restructuring costs for improvement plan for DFDS Seaways• Additional one-off costs related to adjustment of activities to change in market conditions may occur

26 August 20084 Half-year report 2008

BUSINESS AREA PERFORMANCE

Figures in DKK million

• Ro-Ro Shipping: Stable performance on North Sea, downturn on east-west Baltic routes. Increase in tonnage costs (60)

• Container Shipping: Good performance in industrial logistics and chartering, downturn for lo-lo North Sea and Ireland-Continent corridor

• Passenger Shipping: Performance impacted by non-comparable items: Restructuring costs (-28), charter income in 2007 (-16) and change in cost periodization (-20) (Total effect: -64). Higher bunker cost explains remaining deviation

• Terminal Services: Progress for 3rd party volumes, lower volumes from own network, profit improvement plan ongoing in Immingham

• Trailer Services: Good performance except for Belgian operator impacted by rise in haulage costs, lower volumes from automotive industry and management change

EBITDA per business area, H1

-100

0

100

200

300

400

500

Ro-RoShipping

ContainerShipping

PassengerShipping

TerminalServices

TrailerServices

DK

K m

ill.

2007 2008

-60

-20

-83

-1 -7

FINANCIALS H1 2008

Christian Merrild, CFO

5

26 August 20086 Half-year report 2008

HIGHER COST LEVEL ERODES MARGINS

DKK mill. Q2 2007 Q2 2008Change

08/07 H1 2007 H1 2008Change

08/07

Revenue 2.104 2.209 5% 3.984 4.153 4%Revenue growth, % 13,2 5,0 15,5 4,2

Operating profit before depreciation (EBITDA) 396 294 -26% 600 434 -28%EBITDA-margin, % 18,8 13,3 15,1 10,5

Profit on disposal of assets 0 30 -2 30

Operating profit (EBIT) 251 180 -28% 297 177 -40%EBIT-margin, % 11,9 8,1 7,5 4,3

Financing, net -57 -54 -116 -108

Pre-tax profit 194 126 -35% 181 68 -62%

26 August 20087 Half-year report 2008

Q2 PER BUSINESS AREA

DKK mill. Q2 2007 Q2 2008 Change, % Comments

RevenueDFDS Group 2.104 2.209 5,0

Ro-Ro Shipping 904 997 10,3 Volumes down 2%, rate level slightly up, increase in BAF Container Shipping 394 441 11,9 Increase in industrial volumes, increase in BAF Passenger Shipping 517 503 -2,7 Adjusted for ship charter on a level, pax down 2% Terminal Services 174 169 -2,9 Lower internal volumes Trailer Services 250 262 4,8 Prices & surcharges up, consignments down 2%

Q2 2007 Q2 2008Change,

DKK mill.EBITDADFDS Group 396 294 -102

Ro-Ro Shipping 243 211 -32 Increase in cost for chartered tonnage, lower capacity utilization Container Shipping 40 29 -11 Downturn for Irish/Continent market, haulage costs Passenger Shipping 99 55 -44 Restructurering costs (28), periodization, bunker cost increase Terminal Services 3 1 -2 Lower volumes, cost for improvement plan Trailer Services 18 10 -8 Downturn for Belgian operator

26 August 20088 Half-year report 2008

H1 EBITDA MARGIN DEVELOPMENT

• Adjusted for rise in bunker surcharge, revenue for H1 2008 was on a level with H1 2007

• Bunker: Net increase in bunker cost decreases margin by 0.9% point

• Charter: Capacity expansion using chartered tonnage decreases margin by 0.9% point

• Haulage: Rise in cost for door-to-door transport decreases margin by 0.7% point

• Staff: Restructuring costs concerning organizational changes decreases margin by 0.9% point

H1: EBITDA margin development,adjusted for increase in bunker surcharge

0,9

0,4

0,9

0,7

0,9

0,5

10,9

15,1

10

11

12

13

14

15

16

Mar

gin 2

007

Bunke

r

Main

tena

nce

Charte

r

Haulag

eSta

ff

Oth

er

Mar

gin 2

008

%

26 August 20089 Half-year report 2008

CASH FLOW & INVESTMENTS

• Free cash flow of DKK 333 mill. for H1 2008

• Net investments of DKK 104 mill. include sale of Tramp with proceeds of DKK 156 mill. and profit of DKK 22 mill.

• Extension of three ro-ro ships planned for 2009 increases investments in 2008 by DKK 170 mio. Total investment amounts to DKK 280 mill.

• Deposit paid for two ro-ro ships to be delivered beginning of 2009

Cash flow & investments

-200

0

200

400

600

800

Cash f low fromoperations

Net investments Free cash f lowD

KK

mill

.

H1 2007 H1 2008

26 August 200810 Half-year report 2008

CONTINUED SOLID FINANCIAL PLATFORM

• Net interest bearing debt reduced by 14% to DKK 3.68 bill. from end of H1 2007

• Net interest bearing debt reduced by 4% to DKK 3.68 bill. from end of 2007

• Equity ratio rose to 38% from end of H1 2007 and on a level with end of 2007

Debt and Equity Ratio

0

1

2

3

4

5

H1 2007 FY 2007 H2 2008

DK

K b

ill.

32

33

34

35

36

37

38

39

%

Net interest bearing debt Equity ratio, %

26 August 200811 Half-year report 2008

OIL PRICE & EXCHANGE RATES

• Oil price peaked at a rise of 55% in early July – rise down to 28% end of August

• Full year rise in bunker cost of approx. DKK 400 mill. with a direct profit impact of approx. DKK 80 mill.

• Impact on all business units, most severe on passenger routes

• Recovery of further oil price increase may prove difficult

• Exchange rate coverage, H2 2008: 90% USD, 45% GBP, 90% NOK & 45% SEK

Oil price development

400

450

500

550

600

650

700

750

800

850

02/0

1/20

08

18/0

1/20

08

05/0

2/20

08

21/0

2/20

08

10/0

3/20

08

28/0

3/20

08

15/0

4/20

08

01/0

5/20

08

20/0

5/20

08

06/0

6/20

08

24/0

6/20

08

10/0

7/20

08

28/0

7/20

08

13/0

8/20

08

US

D t

on

s

LFSO 180

GOING FORWARD 2008

Niels Smedegaard, President and CEO

12

26 August 200813 Half-year report 200813

• Economic downturn now impacting certain of our key markets

• Turnaround of Baltic market area remains uncertain

• Passenger markets in Scandinavia are relatively stable, UK market expected to come under more pressure

• Irish market expected to remain difficult

• Lower growth will generate overcapacity in some market areas and create more price pressure

• North Sea freight market expected to remain stable

• Overall prospect is a period of differentiated and low growth and a challenging economic outlook

MARKET SITUATION 2008EXPECTATIONS FOR 2ND HALF

26 August 200814 Half-year report 200814

Tonnage

• Return of one ro-pax vessel and one container ship

• Charter out two ro-ro vessels• One passenger ship laid up

PLANNED ADJUSTMENTS OF ACTIVITIES

Reduction of capacity

• Ro-pax route Germany-Latvia reduced from two to one ship (Oct)

• Ro-ro route Sweden-Belgium reduced from four to three ships (Jul)

• Lo-lo routes Ireland-Continent reduced from five to four ships (Aug)

• Lay-up of passenger ship (Sep)

Sales

• Price adjustments• Drive sales of industrial logistics through

new sales organization Freight Sales Solutions

Cost reductions

• Renegotiation of certain rate agreements• Implementation of phase two of DFDS

Seaways’ profit improvement plan concerning productivity onboard

• Immingham profit improvement plan• Extension of sailing time for some routes• Overhead cost review and reductions

26 August 200815 Half-year report 2008

2008 PERFORMANCE EXPECTATIONSDFDS GROUP

• Revenue growth of approximately 2%, previously 3-5%

• EBITDA decrease of 15-20%, previously approximately on a level with 2007

• Total net investments of approximately DKK 400 mill., previously DKK 200 mill.

• Free cash flow expected to be approximately DKK 600 mill.

• Pre-tax profit of DKK 325-375 mill., previously approximately DKK 500 mill.

• The profit expectation is still subject to a higher degree of uncertainty than usual especially concerning market growth trends and oil price development

26 August 200816 Half-year report 2008

Observations:

• Industry-wide impact of change in market conditions and high oil price

• Effects may help drive necessary consolidation

• Industry players better positioned

• Transaction prices expected to decrease

16

Strategy: From Routes to Network:

  1. Build sea-based European transport network  

2. Integrate value-generating customer solutions for freight and passengers

3. Secure volumes  

4. Maintain constant focus on operations

OUR STRATEGIC AGENDA IS SET

FROM ROUTES TO NETWORK

Q&A

Thank you for your attention!