DFDS TURKISH LOGISTICS TURNAROUND ON TRACK

18 Feb 2025 14:45 CET

INVESTOR NEWS no. 07 - 18 February 2025




* Progress in line with breakeven target for year-end 2025
* Organisational restructuring impacts 125 office employees
* First results from cross-selling leveraging DFDS' European network
* Rightsizing of equipment fleet ongoing


The integration and financial turnaround of Ekol International Transport
acquired in mid-November 2024 is progressing in line with the short-term target
of achieving a breakeven result by year-end 2025.

"Our newly acquired Turkish transport company plays an important role in
supporting Türkiye's growth as a manufacturing hub and European trading partner.
The company's financial performance is however in need of a comprehensive
turnaround requiring tough decisions. We are therefore re-organising the company
and will unfortunately have to part ways with 125 valued and skilled office
employees," says Torben Carlsen, CEO of DFDS.

The turnaround scope includes organisational, commercial, and operational
initiatives.

Organisational restructuring
Ekol International Transport now operates as a new business unit in the
Logistics Division: Türkiye & Europe South, with two country organisations
transferred to the Continent business unit.

The head office organisation in Istanbul has been reviewed and adapted to the
current financial and market conditions. This has resulted in a restructuring
that lays off 125 office employees.

The operating model governing the transport corridors between Türkiye and the
European country organisations have been streamlined to enhance focus on flow
balances, asset utilisation, and volume growth.

Commercial
The commercial workstreams are focused on optimising value propositions to both
top-tier and long-tail customers. Cross-selling initiatives have generated the
first new contracts, validating the potential for pan-European solutions.

Operating efficiency
Opportunities to improve operating efficiency are identified and being
implemented. Focus is initially on rightsizing the equipment fleet
(trucks/trailers/containers) and improving operating efficiency.

The rightsizing includes sales of idle equipment and increased deployment of
haulage subcontractors. So far, 278 trailers have been sold and several hundred
additional units, including trucks, are planned for disposal or subcontracting
in 2025.

Operating efficiency improvements are initially focused on enhancing the service
stability of intermodal solutions, i.e. combinations of road, ferry, and rail
transport, to improve both cost efficiency and customer service levels.


Contact

Torben Carlsen, CEO +45 33 42 32 01

Karen Boesen, CFO +45 20 58 58 40

Søren Brøndholt Nielsen, IR +45 33 42 33 59

Dennis Kjærsgaard, Media +45 42 30 38 47


About DFDS

We operate a transport network in and around Europe with an annual revenue of
DKK 30bn and 14,000 full-time employees.

We move goods in trailers by ferry, road & rail, and we offer complementary and
related transport and logistics solutions.

We also move car and foot passengers on short sea and overnight ferry routes.

DFDS was founded in 1866 and headquartered and listed in Copenhagen.


This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act

More information:
Access the news on Oslo Bors NewsWeb site

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