Greetings from Jan Sunde

Dear reader

It is our pleasure to present FREJA Denmark’s newsletter for the third quarter of 2019.

In this newsletter we give you a presentation of the new vertical lifts, which have been installed in our division in Aarhus, we also inform you about the new legislation related to serialization and how FREJA may assist you in that matter. Furthermore, we present how FREJA grows with our customer Keflico and in a video with two of our trainees, we give you an insight into the trainee program in FREJA. The two trainees, Rasmus and Morten, share their experience and tell about their work.

Please enjoy your reading.

Best regards
Jan Sunde
Managing Director

FREJA develops with our customers

Since 1953 Keflico has serviced and advised professionals regarding wood-based products and solutions. A part of Keflico’s vision is to create the best customer experience in their industry as well as setting new standards and developing new knowledge and services together with their partners.

Keflico chooses its transportation and freight partners based on this vision. Keflico is a versatile company, that has a constant focus on their customers’ needs. For this reason, Keflico has high demands for its carriers.

The goal for Keflico is to choose carriers who can join them on their growth journey. They expect a high level of service, flexibility, and proactivity on the existing markets, as well as in potential new markets. That FREJA can offer serious transport solutions in all of Europe and worldwide, has been a great factor in the choice of FREJA.

For Keflico the market and demands are in constant movement, so an important part of the collaboration between the two parties is dialogue. To have a close relationship with FREJA and good communication ensures that Keflico can be ahead of the game and focus on their core competencies.

“It is the good story about how FREJA started by doing a couple of shipments for us to prove their quality. The experience with FREJA was good and lived up to their own, as well as Keflico’s expectations. FREJA certainly lives up to our wish of having a flexible and trustworthy partner. This has resulted in a close relationship where we, month after month, grow and develop together” says Jan Lykke Hansen, Supply Chain Manager at Keflico.

The collaboration between Keflico and FREJA is based on a strong partnership with a common interest in creating growth and development for both parties.

If you wish to hear more about FREJA’s products and services, please contact our Sales Director Denmark, Franz Andersen, on +45 9670 5030 or fas@freja.com.

FREJA gets new vertical lifts in Denmark

At FREJA Skanderborg, we have chosen a simple, efficient and space saving solution for storage and picking.

Our customer, Deichmann Sko ApS, for whom we run a web shop in Denmark and Sweden, has ambitious growth plans for the future development in these markets. Late summer 2018, we could either chose to do more of the same and put up more shelving for manual picks – or think innovative. We chose to do the latter.

After thorough dialogue with several providers, the choice was made for a total of 10 x 9-meter-high, LOGIMAT® lifts with space for many shoes. As in many, many shoes. We are ready for two digit growth rates and with the right IT integration also follows increased efficiency.

With the 10 lifts we can now store and pick the same number of shoes on only 350 m2 instead of the original 1.000 m2 in use at the time – without thought for the planned growth. Furthermore, we could terminate an external lease and gather all warehousing activities on one location.

We are in constant development with our customers and the needs they challenge us with. Do not hesitate to contact us to discuss your needs for warehousing or logistical solutions.

Trainee at FREJA

FREJA has a comprehensive trainee program which means that each year in August we welcome a new group of trainees. The trainee period is two years and we offer trainee positions in transports, logistics and accounting. In FREJA we find it important to educate young people and thereby create our own supply of competent teammates. During the two years in FREJA, the trainee will work in various divisions and have a wide insight into the relevant part of the business.

Dann Petersen started as a trainee in August 2018 in our UK/Ireland division. About his first year in FREJA Dann says: “I have learnt a lot during my first year, not only all the administrative work related to planning a trip to and from England, but also experienced the work from a drivers’ point of view. I have been so lucky to join one of our drivers on a tour to Great Britain, to see how everything is connected from a larger perspective. Furthermore, I had the opportunity to meet our partners and put a face on the people with whom I have the daily contact.

As a part of his training, Dann has transferred to another division on September 1^st. He is now in our customs division and says in that connection: “From the customs division I expect to obtain a clear understanding of the customs clearance system. I think it will be especially interesting in connection with Brexit and my qualifications from my work at the UK/Ireland department might become an advantage.

In general I find that the education as a transport planner fits me perfectly. It is great that the training program is based on learning in practice so you really can “get your hands dirty”. At the same time we learn a lot at the school and they give us many tools to use in our daily work. FREJA’s values suit me just fine, since they are based on quality, honesty and credibility. These are characteristics which are important at as well the personal as the professional level.”

If you are interested in learning more about FREJA’s trainee program and job opportunities, please contact HR Partner Tina Thorup at +45 9670 5283 or ttj@freja.com .

FREJA ensures traceability in your supply chain

What is serialization?

Serialization, also called verification, simply means that since 9^th February 2019 most prescription drugs and certain non-prescription drugs must be equipped with an individual bar code as well as a seal, enabling you to easily spot if the package has been opened. The purpose of the new system is to improve patient safety by an inspection of the authenticity of each individual packaging and to avoid that fake pharmaceutical products will find their way to the consumer.

What does the new EU directive about serialization mean?

The EU directive requires that all prescription drugs, which are included in the directive, and that are produced after 9^th February 2019, must be packed in sealed packages with a package specific – or individual – bar code, a so called 2D data matrix bar code and the anti-tampering device.

The new system has resulted in the creation of a pan European verification system. In order to handle this task, the relevant European trade associations and partners established a non-profit organization in February 2015 – The European Medicines Verification Organisation (EMVO) – to administrate and control the system in all of Europe. In Denmark we have established a national system for handling the data, and The Danish Medicines Verification Organisation (DMVO) is responsible for the administration and management of this according to the requirements of the EU directive.

As a manufacturer, what do you have to be aware of?

As a manufacturer you are required to upload your data to the European database. Via the central database, information is forwarded to the national databases. Before the prescription drug is handed out to a consumer at a pharmacy or hospital, a safety check will take place, a so called verification of the product, in the European database via the national database by a scan of the 2D barcode at the pharmacy or hospital. If the data is not found in the database, the package may not be handed out.

How may FREJA assist your business in this process?

FREJA offers to perform the transactions required to verify the products, which are delivered to FREJA’s GDP warehouse from a manufacturer, as well as for returned products and an export, so that legislation is respected. FREJA works to support the safety of pharmaceuticals in the market and to make sure that the products, which reach consumers, are not falsifications, and in that way we help to create transparency in the supply chain.

For more information about serialization or on how FREJA can be of service, please feel free to contact FREJA’s Group Healthcare Logistics Director, Marina Steensen, at +45 9670 5422 or msn@freja.com.

To all customers of FREJA Transport & Logistics, regarding increased congestion on European terminals.

We would like to inform you that with increasing congestion on European port terminals and overall dwell times continuing to rise, more terminals are attempting to address long-stay container issues through a variety of measures. These include moving containers to separate storage areas and/or imposing additional one-time or daily charges for laden long-stay boxes.

While we are negotiating charge acceptance with our Shipping Lines, please be aware that if we are forced to accept any charges, we, unfortunately, must charge this back to you as our customer. Because many of the charges are of an emergency nature, they may be issued on short notice.

For further questions please refer to your local FREJA office/representative, where we can inform you of any changes that may occur on your shipment.

Best Regards

FREJA Transport & Logistics

The tragic development in Ukraine will affect the transport business

Many foreign trucks are operated by drivers from third countries including drivers from Ukraine.

After the Ukrainian government has convened all personnel of the reserve aged 18 to 60 years to join the military services immediately, we see that many drivers return home to Ukraine.

We expect this to have an influence on the operation in a market already lacking capacity.

We hope for your understanding of this situation which is outside FREJA’s control. We encourage you to stay in close contact with your usual contact person in FREJA regarding the development.

PRESS RELEASE

The acquisition of IRT Logistics brings new colleagues and a strengthened business area for groupage transport between Sweden and the UK to the fast-growing Danish logistics company SDK FREJA.

To strengthen the competencies of road transport of groupage between Sweden and the UK, the Danish company SDK FREJA has invested in the Gothenburg-based niche logistics company IRT Logistics.

“IRT Logistics has been on our radar for a long time, and now the time was right for us to enter into an agreement. It is an acquisition that will strengthen our business considerably on groupage transports between Sweden and the UK. At the same time, both existing and new customers will experience that the new customer-facing IT solutions that a company of SDK FREJA's caliber brings to IRT Logistics, will strengthen the services they demand”, says Søren Skive, EVP in FREJA Transport & Logistics AB.

Founder of IRT Logistics, Björn Steenstrup, is also pleased to know that his life's work will continue under SDK FREJA.

“For a long time, we have considered FREJA a qualified partner to run our company with the right visions, and now it was time. This year, we were able to celebrate our 20th anniversary, and it seemed an appropriate time to pass on the torch to someone who shares our values ​​and who can and will further develop the company that we have built”, says Björn Steenstrup.

IRT Logistics itself has been on a growth journey with a 65 percent increase in the annual result over the past five years, and it is acquired with an expected annual turnover of SEK 45 million. All nine employees in IRT Logistics will continue under the new ownership.

The growth journey continues in 2022

The acquisition of Swedish IRT Logistics is the third acquisition under FREJA Transport & Logistics in 2021, and it is the latest addition to SDK FREJA's growth journey. Since the two logistics companies merged in December 2020, the journey has included a partial acquisition of the Danish company Nordic Waste and three acquisitions of logistics companies throughout the Nordic region: Finnish TL Trans, Norwegian Thoresen Transport, and now Swedish IRT Logistics.

It is this acquisition approach that will ensure continued growth towards SDK FREJA's goal of a total turnover in 2025 of DKK 8-10 billion.

“We expect an increasing need in the market for one-stop-shop logistics services. By always being on the lookout for new partners and companies that can supplement and improve our services, we are well on our way to being the obvious choice”, says Ulrik Rasmussen, Group CEO of FREJA Transport & Logistics Holding A/S, and elaborates:

“The most important thing in our acquisition strategy, however, will always be that we can find common ground between potential companies and ourselves in both values ​​and business. Logistics is a people business, and it is best built on trust and understanding. A motto that governs everything we do in our business”.

SDK FREJA is part of the Danish family-owned group United Shipping and Trading Company, USTC. An international conglomerate with a wide range of companies in areas such as logistics, shipping, bunker, IT, and alternative energy.

The transaction price will not be disclosed.

For more information, please contact:

Björn Steenstrup, owner/CEO, IRT Logistics AB

E-mail: bjorn@irtab.se or phone: 0046 – 73 531 3181

Søren Skive, EVP, FREJA Transport & Logistics AB

E-mail: ssk@freja.com or phone: 0045 – 6025 4600

Read the full press release here

PRESS RELEASE

SDK FREJA delivers record financial performance despite challenging market conditions.

SDK FREJA reports a remarkable financial result following a year characterised by challenging market conditions. The company can report a revenue of DKK 6.6 billion, an EBIT of DKK 331 million - an increase of 25% compared to the previous year and an EBT of DKK 287 million.

The financial year 2022/23 was marked by SDK FREJA’s ability to adapt and stay customer focused in a market dominated by volatile energy prices, rising inflation and interest rates, and challenges in relation to freight and storage capacity.

In recent years, SDK FREJA has been through a major expansion of its business portfolio. Today, the company consists of three business areas: Shipping, Logistics, and Environment & Recycling.

“Each of our three business areas have impressively demonstrated adaptability and strong competitiveness in an unpredictable market. Our employees have once again proven their strong capabilities and flexibility and have further ensured that we can continue to offer customers the best solutions and services,” says Søren Gran Hansen, CEO at SDK FREJA.

Throughout the year, the Group has continued to strengthen the organisation and business platform by investing in IT and digitalisation among other initiatives, which has contributed to strengthening SDK FREJA’s position in the market.

"We are proud to deliver our best result in shipping to date. It has been a year of high activity throughout all of our segments in Agency and Stevedoring, which has required an extraordinary effort from our valuable employees,” says Lars Jespersen, CEO at SDK Shipping.

Ulrik Rasmussen, CEO at FREJA Transport & Logistics Holding adds:

"We have effectively carried out our strategy, which will make it easy and seamless to be a customer to FREJA and where we will always go above and beyond for our customers. It has paid off, and we are very pleased to be able to deliver a record performance this year. However, the primary reason for our record result can be attributed to our valuable employees, who have been exceptional in navigating an unpredictable market."

Acquisitions remain a high priority

SDK FREJA is preparing for new times. Rising interest rates and inflation have led to less construction work and a lowering in private consumption, which has already resulted in some reduction in freight volumes. Therefore, SDK FREJA expects a normalisation of the shipping and logistics market as the world economy will grow more subdued. However, SDK FREJA still has high ambitions within M&A.

"Organic growth as well as growth through mergers and acquisitions remain strategically important to us. M&A can generate value through agile geographical expansion, achieving economies of scale, new products, and core competencies. It is therefore a cornerstone in the development of SDK FREJA to continue to be aggressive on the acquisition front and be on the lookout for new opportunities ahead," says CEO Søren Gran Hansen.

The ongoing dedication and desire to conduct acquisitions leads to the company to proceed in evaluating potential acquisition candidates. The proactive acquisition strategy for SDK FREJA is part of an overall strategy that can be traced back to the company's ownership, the family-owned A/S United Shipping and Trading Company (USTC).

Focus on CO2 emissions in Scope 2
In connection with the publication of the annual results, SDK FREJA will also publish its consolidated sustainability report.

"In SDK FREJA, we have determinedly worked to reduce our Scope 2 emissions figures during this year. Among other initiatives, we have invested in improving terminals and office buildings over the past year with the aim of reducing the consumption of electricity and heating," says CEO Søren Gran Hansen.

SDK FREJA has seen a significant reduction in the consumption of energy and heating and at several of SDK FREJA's sites, there is a reduction in energy consumption by more than 50%. This is a result of upgrading both the infrastructure and technology at its largest sites e.g., by installing BMS (Building Management Systems). For SDK FREJA's largest terminals, the result is a reduction of carbon emissions by 25% compared to the last reporting period 2021/2022.

For further information, please contact:

Mikkel Wenzel Andreasen,
Communications Officer, USTC Group Communications.

M +45 26 79 91 63
e-mail: miwa@ustc.dk

About SDK FREJA
SDK FREJA Group is a full-service shipping and logistics company. The main activities of SDK FREJA include freight forwarding within Road, Air & Sea, and Project Cargo, Logistics, as well as Stevedoring, Agency, Customs Clearing, Commercial Chartering, Liner and Cruise services and as Environment & Recycling business. The company offers specialist logistics solutions within Healthcare, Warehousing and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain.

SDK FREJA is one of the few independent and privately owned local mid-sized shipping and logistics companies. With +1,500 employees in eight countries the focus is on providing one entry point for a consistent and effective solution within the business areas.

SDK Freja Group is part of the Danish, family-owned United Shipping & Trading Company (USTC). USTC holds a portfolio of activities that include oil & energy, shipping & logistics, ship owning, risk management, car activities, IT, sustainable energy and environment & recycling, and is present in 40 countries with more than 4,300 employees.

Read in Danish

Dear reader

Welcome to FREJA’s second newsletter in 2022, where we would like to share what is happening in our part of the transport & logistics world.

The financial year 2021/22 was a milestone for SDK FREJA with the company’s first consolidated financial report and the best result to date.

FREJA has expanded its online services. We are proud to announce that now you can track your shipments by air or sea with higher precision and easy accessibility.

FREJA is expanding its endeavors with a new location in Herning. The office opened on 01.06.2022 and it is already functional and operational.

In July 2020, the EU adopted the so-called EU Road Package, which lays down rules for remuneration and working conditions for truck drivers. A recent development (13th of July, 2022) has us continuously observing the changes and impacts of the mobility package as the implementation continues.

We thank you for your interest in our newsletter and wish you a good read.

Sincerely
Jan Sunde

SDK FREJAs Annual Report

The shipping- and logistics company SDK FREJA presents their first, complete 12-month report after last year’s merger. The company has succeeded in increasing their revenue to more than DKK 6 billion, which more than doubles last year’s revenue, corresponding to an increase of 128 percent.

SDK FREJA’s annual report finalizes a turbulent year with a COVID-19 pandemic that has yet to fully release the market, a new war in Europe, new legislation from EU and huge pressure on global supply lines, meaning that the shipping and logistics businesses have had a more complicated year than ever before.

“In spite of a global shipping- and logistics business marked by another year of continuous challenges, we, across the Group, have seen clear progress in both our top- and bottom lines, which we owe to the huge effort from our skilled coworkers,” Says Søren Gran Hansen, Group CEO of SDK FREJA and further elaborates:

“Both strategic acquisitions and a continued investment in our IT platform has increased the effectiveness of our internal business protocols and strengthened our solutions to our clients.”

With this year’s result, however, SDK FREJA has achieved a ten-fold growth in EBT over a five-year period, reaching DKK 244 million. This economic ballast will now secure SDK FREJAs strong position when continuing the company’s growth strategy in coming years, and allow for expansion, acquisitions, and growth.

For more information about the financial result of 21/22, you can read the full press release here:

Expanding offices and partnerships in Denmark

FREJA is expanding its endeavors with a new location in Herning. The office opened on 01.06.2022 and it is already functional and operational. This office will expand and reinforce our customer engagement as they will provide sales- and forwarding expertise along with continuous service to our customers.

The opening of an office in Herning underlines our ambition to believe in local engagement and localized workforces. This applies to customer, employee, and partner values, as we consistently invest in decentralized offices.

FREJAs local Senior Account Manager at the new office, Peter Stensfeldt, believes that to be a part of a local industry you need commitment and presence in the local activities.

Because of this, we are proud to announce that FREJA will expand its partnership with FC Midtjylland and Herning Bluefox. We are excited to continue this collaboration as we believe their values align with the values of FREJA Transport & Logistics. FREJA will continue our partnership, and expand it as we seek to engage more in the local activities in and around Herning.

With more than 35 years of experience in transport and logistics, FREJA can offer professional advice and sparring as well as create solutions based on the customer’s needs.

FREJA looks forward to establishing close customer relationships in Herning, and we aim to create an even stronger foundation in Jutland as the customers’ preferred full-service provider by road, sea, and air.

If you want to know more about how FREJA can help you, feel free to reach out to Peter Stensfeldt or Franz Andersen.

FREJAs Track & Trace services for Air & Sea transportation have expanded

FREJA has expanded its online services. We are proud to announce that now you can track your shipments by air or sea with higher precision and easy accessibility. Now with extended and precise information about your shipment on Air and Sea freight.

To use our Track & Trace service, please head over to the following webpage, where you can enter your Air – MAWB no. or Sea – Container no.

Click here for instant access.

After entering your information a screen prompt will pop up with the information about your shipment immediately.

Get instant information about your shipment. No need for a user ID or password. Just insert your tracking ID in our formula to view the latest updates on your shipment – fast, easy, and convenient.

If you have any questions about the functionality or accessibility, please reach out to your FREJA representative, and we will provide you with the necessary information for you to access updates and information about your shipments.

The EU commission insists that the return of trucks act also applies to trailers.

The latest Mobility Package regulations, which included the 8-weekly mandatory return of vehicles, were approved by the European Parliament in the summer of 2020, with effect from February 2022.

The Mobility Package included the mandatory return truck rule, which states tat a vehicle must return once every eight weeks to the location from where the business is operated. However, the legislation should also be applied to trailers and semi-trailers, according to a Q&A sheet that the EC just released.

This is not set in stone, as Transport en Logistiek Nederland objects to this explanation and interpretation. TLN contests this and believes that this action does nothing to further the objectives of the new European transportation regulations. As they stress: “Trailers are basically the same as containers and they are not returned every eight weeks,” 

FREJA Transport & Logistics is monitoring this development intensively as the conclusion could have a major impact on the capacity available in the market. When we can say something with certainty, we will inform our partners and customers with great haste. Once we know the details.

In July 2020, the EU passed the mobility package that determines the salaries and working conditions for truck drivers. Parts of the mobility package were already implemented in 2020 and 2021. From the 2^nd of February, 2022 another part of the package come into effect. This involves the part of the agreement that mentions the harmonization of salaries.

We find it positive that the EU has a common wish to improve the conditions for drivers and create better salaries- and living conditions, but it is not without extra costs. Specifically, better conditions for drivers and increased taxes and administration are the main contributors to the increase of prices in the future.

SDK FREJA at Breakbulk Rotterdam 2022

As the largest event in the world for the project cargo and breakbulk industry, Breakbulk Europe was the right event to have SDK FREJA’s first official outing as one company. The event in May drew around 10,000 professionals to Rotterdam from more than 120 countries.

Breakbulk Europe has become the global hub for the industrial project supply chain, including the world’s foremost manufacturers, oil & gas companies, EPCs, carriers, ports, logistics firms, specialized transporters, and related service providers.

– We were delighted to showcase for the first time on a live event our truly broad portfolio and all the opportunities we provide to our current customers and our future customers, says Lars Jespersen, CEO of SDK Shipping.

Although the merger in 2020 was widely reported, the CEO of FREJA, Ulrik Rasmussen believes that Breakbulk Europe was a good event to present all the services SDK FREJA can offer.

– The range of our portfolio is so wide; I believe many of our current customers will be pleasantly surprised by the possibilities SDK FREJA as a full-service logistics and shipping company can offer with local knowledge, regional setup, and a Global Network! Ulrik Rasmussen, CEO of FREJA Transport & Logistics A/S

The company offers specialized logistics solutions in Healthcare, Warehousing, and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain. FREJA Transport & Logistics has offices in seven different countries, namely Denmark, Sweden, Norway, Finland, Poland, Holland, and China.

SDK FREJA is part of the family-owned USTC Group with activities covering the supply of bunkers to the shipping industry, tanker shipping, door-to-door logistics, risk management, IT activities, and sustainable energy solutions. The USTC Group is continuously evolving, currently with offices in 38 countries and 4,000 employees worldwide. Each and every one supporting you 24/7/365.

SDK FREJA at stand 2J61!

As the largest event in the world for the project cargo and breakbulk industry, Breakbulk Europe is the right event to have SDK FREJA’s first official outing as one company. The event in May draws around 10,000 professionals to Rotterdam from more than 120 countries.

[caption id="attachment_42703" align="alignleft" width="150"] Lars Jespersen.[/caption]

– We are delighted to showcase for the first time on a live event our truly broad portfolio and all the opportunities we provide to our current customers and our future customers, says Lars Jespersen, CEO of SDK Shipping.

Although the merger in 2020 was widely reported, the CEO of FREJA, Ulrik Rasmussen believes that Breakbulk Europe is a good event to present all the services SDK FREJA can offer.

[caption id="attachment_1210" align="alignright" width="150"] Ulrik Rasmussen.[/caption]

– The range of our portfolio is so wide; I believe many of our current customers will be pleasantly surprised of the possibilities SDK FREJA as a full-service logistics and shipping company can offer with local knowledge, regional setup, and a Global Network!

Breakbulk Europe will be held in Rotterdam at Rotterdam Ahoy, adjacent to the Port of Rotterdam.

The venue Rotterdam Ahoy will include six halls offering an additional 5,000 square meters to comply with the pent-up demand from the industry to meet as one after a two-year event hiatus. Breakbulk Europe will be held 17–19th May 2022.

Breakbulk Europe has become the global hub for the industrial project supply chain, including the world’s foremost manufacturers, oil & gas companies, EPCs, carriers, ports, logistics firms, specialized transporters, and related service providers.

A broad range of services for shipping and logistics

SDK FREJA is one of the few independent and privately owned local mid-sized logistics and shipping companies. SDK FREJA has approx. 200,000 m2 multi harbour terminals in Denmark and Sweden, more than 3,000 trailers on the roads daily as well as a fleet of coasters operated by SDK.

The main activities of SDK FREJA include freight forwarding within Road, Air & Sea, Project, Logistics, as well as Stevedoring, Agency, Chartering, Liner, Cruise and Customs services.

The company offers specialist logistics solutions within Healthcare, Warehousing and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain. FREJA Transport & Logistics has offices in seven different countries, namely Denmark, Sweden, Norway, Finland, Poland, Holland, and China.

SDK FREJA is part of the family owned USTC Group with activities covering supply of bunkers to the shipping industry, tanker shipping, door-to-door logistics, risk management, IT activities and sustainable energy solutions. The USTC Group is continuously evolving, currently with offices in 38 countries and 4,000 employees worldwide. Each and every one supporting you 24/7/365.

Find us, check the Breakbulk Europe exhibitor list!

SDK FREJA A/S, owned by the USTC Group, presents its annual result which showcases the position as a new strong player within the shipping, transport, and logistics industry.

• Earnings (EBIT) have increased from DKK 37.7 million to DKK 97.2 million
• Revenue increased 90 percent to DKK 2.6 billion
• Strong organic growth and optimisation of existing activities

The 2020/21 financial year was a landmark year for SDK FREJA with the best-ever performance
Compared to last year, the operating profit (EBIT) before special items has increased from DKK 37.7m to 97.2m, corresponding to a 158 percent increase.

The impressive results partly build on the great performance of the existing activities prior to the major acquisition that took place in December 2020. But obviously the actual acquisition, when SDK A/S bought 74.7 percent of FREJA Transport & Logistics Holding A/S to consolidate the two large family-owned companies is a key factor. As a natural consequence of the acquisition the company name was changed to SDK FREJA which today has approx. 1250 employees.

“With the acquisition, we wanted to create a new strong player in the shipping, transport and logistics industry and strengthen the overall market position, as well as pave the way for future development and growth. Our results are a testament as to how far we have already come with all three goals", says CEO Søren Gran Hansen, SDK FREJA A/S.

Strong results within both logistics and shipping
Strong organic growth and optimisation related to both the shipping activities as well as the logistics activities in the individual countries play a significant role. Particularly Denmark, Finland, Norway, Sweden, and the Netherlands have made good progress and can report strong earnings. Poland continues to improve its revenue as brand awareness rises in the Polish market, and China performed according to budget with positive earnings, despite a weak project market.

“The integration of SDK’s existing logistics activities with FREJA is going according to the plan. With the strengthened market position, and stronger organisation which has delivered an extraordinary effort during the pandemic, we expect to be able to utilise the opportunities within the new FREJA to the maximum. No doubt we stand far better equipped now with new and improved customer solutions”, says Ulrik Rasmussen, Group CEO of FREJA Transport & Logistics Holding A/S.

Also the performance within shipping demonstrates earnings growth: “Despite challenges relating to the impact from the global Covid-19 pandemic on our Cruise agency business, working from home, staggered working hours and Teams meetings, our strong organization has managed to maintain high service levels and achieve satisfactory financial performance in almost all of our core areas: Stevedoring, Agency and Chartering” says Lars Jespersen CEO of SDK Shipping.

Expectations for the year ahead
Despite the disruption caused by the Covid-19 pandemic which led to an extended period of unpredictability, the company has stayed on its course and earnings have been very satisfying. A comprehensive strategy process that involved a number of key employees was launched this year. The process crystallised into an ambitious strategy plan for developing the company through geographic expansion, organic growth and further acquisitions. Equipped with this strategy and backed by the financially strong and committed ownership, SDK FREJA looks very much forward to exploring and delivering new and better customer solutions in the year to come. The expectations for the period 2021/22 are to benefit from a stronger set-up - and the acquisitions do not stop with FREJA.

“We will not just compete on price but will increasingly maximise the opportunities that come from being a company with a wide range of products and services. Acquisitions are an essential part of our ambitious strategy plan. We have identified a number of specific acquisition opportunities to further strengthen SDK FREJA’s strategic market position”, says Søren Gran Hansen.

FACTS:

• Operates in 8 countries
• Number of offices: +50
• The financial impact from the acquisition of FREJA on the Group for 2020/21 only cover a 4-
  month period. Thus, expectations for 2021/22 are significantly higher earnings (EBIT) than for
  2020/21

Three-year financials overview

SDK FREJA A/S consolidated financials

The SDK FREJA Group is a full-service logistics and shipping company. The main activities of SDK FREJA include freight forwarding within Road, Air & Sea, Project, Logistics, as well as Stevedoring, Agency, Customs Clearing, Commercial Chartering, Liner and Cruise services.
The company offers specialist logistics solutions within Healthcare, Warehousing and Refrigeration and is locally based in Northern Europe including strategic positions in China and Spain. SDK FREJA is one of the few independent and privately owned local mid-sized logistics and shipping companies.

United Shipping & Trading Company (USTC) is present in more than 30 countries through its worldwide portfolio of activities that include oil & energy, shipping & logistics, ship owning, risk management, and IT.
USTC was founded in Fredericia, Denmark, in 1876. Today, the family-owned group consists of well-known companies like Bunker Holding, SDK FREJA, Uni-Tankers, Selected Car Group and Unit IT covering approximately 130 offices and occupying around 3,500 employees combined worldwide. USTC has been headquartered in Middelfart since 1981.