Quarterly Reports

More stable markeTS, but still low visibility

As expected, the first quarter of 2009 was very challenging. - Our Q1 results are obviously affected by the sharp 20-25% decline in freight volumes that has dominated the whole market, says CEO Niels Smedegaard.

Progress was, nonetheless, achieved during the quarter in important areas, adds Niels Smedegaard, - We are very pleased that the many initiatives we have implemented seem to be working. This, combined with lower oil prices, has led to a profit increase of DKK 50 million for the passenger activities. We have also improved the margin on our trailer activities and strengthened the cash flow from operations. In addition we are pursuing opportunities that arise to improve our long term market position.

As for market trends during the rest of 2009, Niels Smedegaard says, - In recent months, the markets have stabilised somewhat. However, visibility is still exceptionally low, so it is still too early to say whether this is merely a stabilisation or a more sustained improvement. As a result, we continue to focus on adapting our costs and activities to market trends, and not least are we keeping focus on sales.

Significant events, Q1:

• Revenue reduced by 26% to DKK 1.4 billion. Adjusted for bunker surcharges, revenue was reduced by 20%

• Operating profit before depreciation (EBITDA) reduced by 44% to DKK 79 million

• Pre-tax profit reduced to DKK -105 million (DKK -58 million)

• Cash flow from operations increased to DKK 223 million (DKK 124 million)

• Passenger Shipping achieved a profit improvement of DKK 50 million

• Trailer Services' margins was improved

• 20-25% lower freight volumes led to a significant decrease in financial performance for ro-ro, container and terminal activities

• Full year pre-tax profit is still expected to be around zero

Look in the archive for previous years' reports and presentations.