ACQUISITION OF NORFOLKLINE APPROVED
AND SYNERGIES INCREASED

Copenhagen, 17.06.2010

• DFDS’ acquisition of Norfolkline approved by the European Commission

• Expected annual cost synergies increased to DKK 180-220 million from previously DKK 135 million

• New business structure with two market-oriented divisions

Since DFDS’ acquisition of Norfolkline was announced in December 2009 a detailed integration plan has been developed, including a new business structure for the combined company, and synergy estimates have been revised and increased. Following approval by the European Commission, the integration of DFDS and Norfolkline can begin once the planned share capital increase is carried out and the transaction thereby completed.

Approval by the European Commission

The European Commission has today approved DFDS’ acquisition of Norfolkline. The approval is contingent on replacement of the existing space charter agreement on the routes Esbjerg-Immingham/Harwich with Norfolkline by an agreement with an independent party. DFDS has therefore entered into a new space charter agreement with Stena Line pending approval by the European Commission. The European Commission has set minimum terms for the agreement concerning capacity and duration.

Expected annual cost synergies of around DKK 200 million

On the back of the detailed integration planning the estimate for annual cost synergies has been increased to an interval of DKK 180-220 million from previously DKK 135 million. It is primarily synergies concerning logistics, procurement and integration of group functions which have increased the synergies. The main synergies are shown in the table below.



The implementation of the integration plan is expected to be completed by the end of 2012. The main part of the integration plan is, however, expected to be completed by the end of 2011 corresponding to around two-thirds of the expected annual synergies. Implementation costs and investments are expected to amount to DKK 175-200 million in the integration period to the end of 2012 with around two-thirds spent in the first 12 months of the period. The potential from expected growth in revenues and earnings has still not been quantified.

New business structure for combined company

The business structure of the combined company is planned to comprise two marketoriented divisions, Shipping Division and Logistics Division.

The Shipping Division will comprise freight and passenger routes organised primarily in geographical units. Port terminals will be an integrated part of the Shipping Division. The Logistics Division will comprise trailer and logistics activities and container and sideport activities. The trailer activities will be organised in geographical units. The two market-oriented divisions will be supported by two resource units: People and Ships, with the purpose of ensuring efficient management of operational resources, and Finance. A main task for Finance will be managing and monitoring the implementation of the integration plan.

Management

The members of DFDS’ Executive Board will after completion of the transaction continue to be Niels Smedegaard, CEO, and Torben Carlsen, CFO. The members of the Executive Management will be announced shortly.

Next steps

Following the above mentioned approval of the transaction an Offering Circular is expected to be announced shortly for the previously announced share issues, respectively a rights issue of around DKK 550 million and a directed issue to A. P. Møller - Mærsk corresponding to an ownership share of 28.2%.

DFDS