Slide 1: Q1 2024 Results
Q1 2024 RESULTS DSV A/S Conference call 24 April 2024, 11:00 am CEST
Slide 2: Agenda
Agenda • Highlights • Business segments • Commercial strategy • Update on NEOM joint venture • Financial review • Q&A Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond
Slide 3: Highlights Q1 2024
Highlights Q1 2024 • Strong start to 2024 with market share gains across all divisions in a normalising market. • Cash flow for Q1 2024 impacted by increased activity across all divisions - share buyback programme of DKK 1.0 billion launched. • Reiterating 2024 EBIT guidance of DKK 15 - 17 billion.
Slide 4: Air & Sea
Air & Sea Management commentary (DKKm) Q1 2024 Q1 2023 Growth* • Strong financial results in line with Gross profit Air 2,895 3,727 (20.8%) expectations and reflects seasonality and the continued Gross profit Sea 2,868 3,300 (11.1%) normalisation. Total gross profit 5,763 7,027 (16.2%) • Return of m
Slide 5: Air freight Q1 2024
Air freight Q1 2024 • We are taking market share in our addressable market, i.e. excluding cross border e-commerce and perishables. • In a highly competitive market with rate volatility ex-Asia, gross profit yields are stabilising. • Strong sequential performance: Q1 2024 volumes in line with Q4 202
Slide 6: Sea freight Q1 2024
Sea freight Q1 2024 • DSV is gaining market share within sea freight. Solid volume recovery, with highest growth on the Trans-Pacific and Asia-Europe trade lanes. • Gross profit yield levels are stabilising, with limited impact from the Red Sea situation during Q1 2024. • Strong start to the year: s
Slide 7: Road
Road Management commentary (DKKm) Q1 2024 Q1 2023 Growth* • Market share gains on international shipments and European groupage Revenue 10,425 10,094 3.3% network. Gross profit 1,964 1,976 (0.7%) • Gross profit and EBIT on par with Q1 2023 and in line with expectations. EBIT 490 495 (1.8%) *) Growth
Slide 8: Solutions
Solutions Management commentary (DKKm) Q1 2024 Q1 2023 Growth* • Solid growth on the back of continued expansion of our Revenue 5,989 5,625 7.3% Campus network, without any increases in FTEs. Gross profit 2,401 2,285 5.8% • Average warehouse utilisation lower than same quarter last year EBIT 500 548
Slide 9: Leadership team in place to deliver growth
Leadership team in place to deliver growth Executive Divisions Commercial management Seamless transition Maintaining the P&L Aligned structure completed for Executive ownership and strong across divisions and Board and Group accountability group to deliver on Executive Committee large accounts • Exp
Slide 10: Accelerating organic growth and accountability with a revised commercial approach
Accelerating organic growth and accountability with a revised commercial approach After recent M&A, our By strengthening our … while retaining and …and digitalising largest customers vertical and commercial further developing the customer account for ~50% of setup, we will boost our traditional jour
Slide 11: Update on the joint venture with NEOM
Update on the joint venture with NEOM Sourcing to NEOM from • In October 2023, we announced an exclusive logistics joint across the world venture to provide logistics services for the projects in the NEOM region. • The project is mobilised and ready to go live in Q2 as planned. The timing of investm
Slide 12: P&L Q1 2024
P&L Q1 2024 Management commentary (DKKm) Q1 2024 Q1 2023 Growth* Headlines • Despite higher activity levels, revenue and gross profit was Revenue 38,340 40,954 (5.0%) impacted by continued market Gross profit 10,265 11,391 (8.6%) normalisation and lower rates EBIT before special items 3,641 4,672 (2
Slide 13: Cash flow and financial ratios Q1 2024
Cash flow and financial ratios Q1 2024 (DKKm) Q1 2024 Q1 2023 Variance Management commentary EBITDA before special items 5,032 5,941 (909) Cash flow Change in working capital (2,092) 1,989 (4,081) Tax, interest, change in provisions, etc. (1,184) (1,677) 493 • A return to normal seasonality with Spe
Slide 14: Allocations to shareholders
Allocations to shareholders Management commentary • Based on cash flow in Q1 2024, we start a new share buyback programme of DKK 1.0 billion (running 24 April 2024 to 23 July 2024). • 1.4 million shares bought back in Q1 2024 at an average price of DKK 1,180. • On 23 April 2024, the portfolio of tre
Slide 15: Reiterating outlook 2024
Reiterating outlook 2024 (DKKm) Outlook 2024 Actual 2023 EBIT before special items 15,000-17,000 17,723 Effective tax rate 24.0% 24.8% Main assumptions • We expect air and sea markets will grow 3-4% in 2024. We continue to target profitable, above market growth, and our strategic growth initiatives
Slide 16: Key takeaways
Key takeaways Strong Q1 result with Completed the We are executing on market share gains leadership transition our strategy – across all three with an experienced supporting organic divisions leadership team in place growth and M&A Continuing to build on our DSV DNA 16
Slide 17: To attend the teleconference, please dial one of the numbers below
To attend the teleconference, please dial one of the numbers below Danish participants +45 78 76 84 90 International participants +44 (0) 203 769 6819 US participants +1 646 787 0157 PIN: 882686 To ask questions press “5*”
Slide 18: Financial details
Financial details SF» eS
Slide 19: 2026 financial targets
2026 financial targets 2023 actual 2026 targets Assumptions • We maintain the targets, but the negative DSV Group (%) volume trends for Air & Sea in 2022-23 have made the targets more challenging. Conversion ratio 40.4 >45.0 • We assume that annual GDP growth will be around 3% and transport market g
Slide 20: P&L details - Group
P&L details - Group Group (DKKm) FY 2019 FY 2020 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Revenue 94,701 115,932 182,306 61,125 62,749 60,560 51,231 235,665 40,954 37,727 35,576 36,528 150,785 38,340 Direct costs 70,947 87,398 144,691 48,248 48,
Slide 21: P&L details – Air & Sea
P&L details – Air & Sea Air & Sea (DKKm) FY 2019 FY 2020 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Divisional revenue 51,151 73,689 131,901 45,887 47,282 45,339 35,923 174,431 26,213 22,993 21,912 21,854 92,972 22,716 Direct costs 38,634 56,780 1
Slide 22: P&L details – Road and Solutions
P&L details – Road and Solutions Road (DKKm) FY 2019 FY 2020 FY 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Divisional revenue 31,621 30,395 35,416 10,188 10,835 10,406 10,078 41,507 10,094 9,650 9,036 9,375 38,155 10,425 Direct costs 25,465 24,257 28
Slide 23: Balance sheet
Balance sheet (DKKm) Assets 31.03.2024 31.03.2023 Variance 31.12.2023 Equity and liabilities 31.03.2024 31.03.2023 Variance 31.12.2023 Intangibles assets 77,188 77,020 168 77,106 DSV shareholders’ share of equity 68,629 70,503 (1,874) 68,703 Right-of-use assets 16,698 14,782 1,916 15,655 Non-control
Slide 24: Investor Relations
Investor Relations Share information Financial calendar 2024 Investor Relations contacts DSV A/S is listed on the Copenhagen stock 01 Feb. 2024 Annual Report 2023 DSV A/S exchange under the symbol ‘DSV’. Hovedgaden 630, 2640 Hedehusene, Denmark investor@dsv.com 14 Mar. 2024 Annual General Meeting 20