Slide 1: Q3 2024 Results
Q3 2024 RESULTS DSV A/S Investor presentation
Slide 2: Content
Content • Highlights • Business segments • Update on NEOM joint venture • Financial review • Timeline for Schenker transaction • Appendix Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many
Slide 3: Highlights Q3 2024
Highlights Q3 2024 • Acquisition of Schenker announced and approved by seller, and successful equity raise of DKK 37.3 billion (approx. EUR 5 billion). • Solid Q3 2024 results with continued rebound in earnings driven by higher volumes and market share gains across all divisions. • Gross profit up 4
Slide 4: Air & Sea
Air & Sea Management commentary (DKKm) Q3 2024 Q3 2023 Growth* 9M 2024 9M 2023 Growth* • Strong volume growth and market Gross profit Air 3,012 3,089 (1.5%) 8,860 10,390 (13.6%) share gains for both Air and Sea in Q3 2024, supported by commercial Gross profit Sea 3,446 3,121 11.8% 9,433 9,601 (0.3%)
Slide 5: Air freight Q3 2024
Air freight Q3 2024 • Continued volume and market share growth in our addressable market in Q3 2024 (i.e. excluding e-commerce and perishables). • Stabilisation in absolute gross profit compared to last year with higher volumes compensating for lower gross profit yields. • Continued strength in APAC
Slide 6: Sea freight Q3 2024
Sea freight Q3 2024 • Strong year-over-year increase in gross profit driven by volume growth above the market and improved gross profit yields. • Some impact on yields from the Red Sea situation in Q3 2024 – no further material impact expected for the remainder of the year. • The usual seasonality w
Slide 7: Road
Road Management commentary (DKKm) Q3 2024 Q3 2023 Growth* 9M 2024 9M 2023 Growth* • Stable gross profit and EBIT development in challenging and Revenue 9,967 9,036 9.8% 30,953 28,780 7.3% volatile markets, especially in Europe. Gross profit 1,934 1,924 0.2% 5,959 5,923 0.3% • Revenue growth driven b
Slide 8: Solutions
Solutions Management commentary (DKKm) Q3 2024 Q3 2023 Growth* 9M 2024 9M 2023 Growth* • Improved gross profit and EBIT in Q3 2024 compared to last year. Revenue 6,619 5,538 20.3% 19,524 17,061 14.9% • Growth driven by continued Gross profit 2,587 2,381 9.3% 7,564 7,039 7.7% expansion of capacity as
Slide 9: Update on the joint venture with NEOM
Update on the joint venture with NEOM Sourcing to NEOM from across the world • The exclusive logistics joint venture to provide transport and logistics services for the projects in NEOM has obtained the final regulatory approvals and the incorporation process has begun. • A modest ramp-up of the joi
Slide 10: P&L Q3 and 9M 2024
P&L Q3 and 9M 2024 Management commentary (DKKm) Q3 2024 Q3 2023 Growth* 9M 2024 9M 2023 Growth* Headlines • The financial performance continued to improve in Q3 2024 compared to Revenue 44,095 35,576 25.2% 123,592 114,257 9.2% same period last year and to the first Gross profit 11,080 10,649 4.8% 32
Slide 11: Cash flow and financial ratios 9M 2024
Cash flow and financial ratios 9M 2024 (DKKm) 9M 2024 9M 2023 Variance Management commentary EBITDA before special items 16,391 17,687 (1,296) Cash flow Change in working capital (3,324) 2,208 (5,532) Tax, interest, change in provisions, etc. (4,169) (5,133) 964 • Adjusted free cash flow of DKK Spec
Slide 12: Allocations to shareholders
Allocations to shareholders Management commentary • A capital increase of DKK 37.3 billion Share buyback (EUR 5 billion), corresponding to 26.4 Dividend million new shares, was completed on 4 October 2024. • After the increase, the share capital consists of 240,444,523 shares. 20,313 • With the anno
Slide 13: Outlook for 2024
Outlook for 2024 (DKKm) Updated outlook* Previous outlook Actual 2023 EBIT before special items 16,000-17,000 15,500-17,000 17,723 Effective tax rate 24.0% 24.0% 24.8% Special items 650 650 - *) EBIT guidance range for full-year 2024 was narrowed on 3 October 2024 (ref. announcement 1135) Main assum
Slide 14: Next steps of Schenker acquisition
Next steps of Schenker acquisition Expected timeline 13 September 2024 October 2024 Q2 2025 Announcement of Approval by the Supervisory Bond issuance to All regulatory Expected closing of agreement to Board of Deutsche Bahn & by refinance bridge approvals obtained, transaction acquire Schenker the G
Slide 15: Key takeaways
Key takeaways A positive quarter with the announced Schenker acquisition progressing well Returning to year- Strong free cash flow Full-year 2024 EBIT over-year growth in generation with guidance of DKK earnings driven by sequential improvement 16.0 - 17.0 billion higher volumes and in net working c
Slide 16: Appendix
DSV. . 6a Sifansport and Logistics
Slide 17: DSV at a glance
DSV at a glance Global One company – DSV operations three divisions Nasdaq Copenhagen No majority shareholder – 100% free float ~74,000 Air & Sea Credit ratings Employees A global network A3 (Stable) by Moody’s A- (Negative) by Standard & Poors +1,600 Road Overland transport in Europe, Offices and l
Slide 18: Our purpose and strategy
Our purpose and strategy We want to be a leading freight forwarder targeting sustainable growth Keeping supply chains flowing Purpose Vision Mission We are part of the critical infrastructure driving world trade. We help our Keeping supply Sustainable Operational customers grow by keeping their supp
Slide 19: From local haulier to global player
13% 11% From local haulier to global player 76% A global network created through organic growth and M&A 2023 Breakdown of EBIT by division 2021 Air & Sea Road Solutions EBIT Breakdown of EBIT by geography 3% EMEA Americas 38% APAC 59% 2019 100% 2016 2008 2006 2000 1976 1997 Revenue 2,694 DKKm 19,478
Slide 20: Combining DSV and Schenker to create a world-leading player
Combining DSV and Schenker to create a world-leading player Third-party logistics providers by 2023 revenue in EUR billion Combined DSV + Schenker 39.3 1 DHL Logistics (DE) 36.3 2 Kuehne + Nagel (CH) 27.4 33 DSV (DK) 20.2 44 Schenker (DE) 19.1 5 C.H. Robinson (US) 16.3 6 Nippon Express (JP) 14.8 7 8
Slide 21: DSV and Schenker – an excellent strategic match across divisions
DSV and Schenker – an excellent strategic match across divisions Air Sea Road Logistics freight freight freight solutions Global leader Global leader European leader Global top 5 player Source: Transport Intelligence (by 2023 revenue) 21
Slide 22: Working together to support your entire supply chain
Working together to support your entire supply ~74,000 people in more than 80 countries at your service Third-party logistics services (3PL) 4 PL services Air and Sea Road Solutions Lead Logistics • Access to all markets through • Road freight services in EMEA • Contract logistics worldwide • Enabli
Slide 23: Creating value in the supply chain
Creating value in the supply chain From A to B and much more Freight forwarding services Shipment booking — Pick-up — Warehouse — Documentation & customs clearance — Cargo consolidation — Purchase order management Cross-dock terminal — Insurance A From shipper End-to-end logistics Through our global
Slide 24: Leveraging our global network
Leveraging our global network Value creation Global network strategy Air freight network – LCL network – Groupage network – Vertical specific solutions – Multi-client warehouses • Higher quality • International consistency • Stronger end-to-end offering Control of Control towers to Increased digital
Slide 25: Focused commercial efforts to grow gross profit
Focused commercial efforts to grow gross profit DSV Gross Profit distribution Illustrative graph Management Commentary SMALLER CUSTOMERS Largest global customers (Top ~200) LARGE TO MID-SIZED (less than 5% of gross profit) CUSTOMERS • A significant growth potential both in terms of share of wallet a
Slide 26: Vertical specialists closely connected to our customers
Vertical specialists closely connected to our customers Our industry-specific expertise and solutions offered globally (% share of gross profit) Consumer Automotive Industrial Healthcare Technology ~25% ~15% ~35% ~10% ~10% Other: ~5%
Slide 27: Schenker acquisition
Schenker acquisition
Slide 28: DSV deals among the largest in Denmark
DSV deals among the largest in Denmark Target Acquirer Year ~Value in EURm 1 Catalent, Inc. (pending) Novo Holdings 2024 15,310 Management commentary 2 Schenker (pending) DSV A/S 2024 14,300 3 Unilabs AP Møller Holdings 2022 5,000 • DSV has executed 3 of the 20 largest M&A deals in 4 RSA Insurance g
Slide 29: Lifting EBIT from DKK 3 billion through M&A and organic growth
Lifting EBIT from DKK 3 billion through M&A and organic growth Continuous improvement of our margins through M&A 11.8% 10.7% GIL acquisition 8.9% Panalpina acquisition 8.2% 6.9% 7.0% UTi acquisition 6.5% 6.0% 5.1% 25,204 17,723 16,223 9,520 6,654 4,878 5,450 3,050 3,475 2015 2016 2017 2018 2019 2020
Slide 30: Strategic rationale
Strategic rationale Acquisition of Schenker An excellent strategic match Schenker will add EURbn 19.1 annual revenue* • Combining two strong companies to create a world-leading player in the industry. Attractive exposure to Air & Sea and Road business* • Adding significant volumes to Air & Sea. • Es
Slide 31: Schenker at a glance (2023)
Schenker at a glance (2023) Top 4 global logistics player Significant global freight volumes Road freight and contract logistics ~19.1 EURbn revenue Strong customer Industry competencies Global air freight A leading European with direct presence in relationships, especially and know-how forwarding s
Slide 32: Uniting two global networks – DSV and Schenker
Uniting two global networks – DSV and Schenker DSV Schenker 73,600 EMPLOYEES (FTE) 86,600 DKK 150.8 bn DKK 142.4 bn ANNUAL REVENUE EUR 20.2 bn EUR 19.1 bn 1,300,000 AIR FREIGHT (tonnes) 1,150,000 2,500,000 SEA FREIGHT (TEU) 1,800,000 DKK 38.2 bn DKK 58.4 bn ROAD FREIGHT (revenue) EUR 5.1 bn EUR 7.8
Slide 33: DSV and Schenker combined (based on 2023 revenue)
DSV and Schenker combined (based on 2023 revenue) DSV Schenker Combined (pro forma) 15% 14% 15% 26% 29% 33% Divisions 25% 33% 41% 19% Air Sea 23% 27% Road Contract Logistics 24% 20% 22% Geography 59% 16% 64% 16% 62% 17% EMEA AMERICAS APAC 33
Slide 34: DSV and Schenker (2023 combined)
DSV and Schenker (2023 combined) Revenue EBIT Employees ~293,000 ~26,100 ~160,000 DKKm DKKm FTE (8.9% EBIT margin) ~151,000 DKKm ~142,000 DKKm ~17,700 DKKm ~8,400 DKKm ~73,600 (FTE) ~86,600 (FTE) (11.8% EBIT margin) (5.9% EBIT margin) For illustrative purposes only. EUR / DKK = 7.456 (average FY 202
Slide 35: DSV x NEOM joint venture
DSV x NEOM joint venture
Slide 36: Logistics joint venture with NEOM
Logistics joint venture with NEOM • NEOM aims to create one consolidated supply chain to support the projects under NEOM. • In the joint venture, DSV will set up a Control Tower to organise and monitor NEOM’s entire supply chain, including sourcing from suppliers across the world and on-site logisti
Slide 37: Planned activities in the joint venture
Planned activities in the joint venture NEOM JV Construction End-state Property Management / logistics logistics development back-office Air, sea, road and contract Manage, execute and support Development of Strategy and planning. logistics services for the urban logistics for the population, logist
Slide 38: Sustainability
Sustainability
Slide 39: Sustainability strategy
Sustainability strategy Addressing our material impacts in environment, social and governance ENVIRONMENT SOCIAL GOVERNANCE Reducing our impact Caring for our employees and Doing business with integrity and engaging with communities running a responsible supply • Climate change chain • Diversity and
Slide 40: Our carbon footprint
Our carbon footprint Committed to net zero in 2050 Total carbon footprint 2023 Science-based targets Our emissions by scope Scope 3 by transport mode (Tonne CO2) 2030 3% 37.1% Scope 1 & 2 0.41 million 50% Reduction of scope 93% SCOPE 3 SCOPE 1+2 4% Other categories, SCOPE 3 LAND (Buildings, company
Slide 41: Our roadmap towards net-zero emissions
Our roadmap towards net-zero emissions Energy efficiency and Four key levers to deliver on our decarbonisation targets optimisation Phasing out fossil fuels in transportation 20,526 (CO2e - ‘000 tonnes) Renewable energy Scopes 1+2: ~15% production and charging Scope 3: ~20% Scopes 1+2: ~30% infrastr
Slide 42: DSV Green Logistics
DSV Green Logistics A set of solutions that reduce the carbon footprint of our customers’ supply chains CO2 Supply chain Sustainable Sustainable Carbon reporting optimisation warehousing fuels offsetting Reporting of customer Customer analysis to Sustainable warehousing Sustainable fuel Offsetting o
Slide 43: Our approach to IT
Our approach to IT
Slide 44: Our IT landscape
Our IT landscape Designed to support good customer service, high data quality and growth Customer myDSV ∙ API / EDI Air & Sea Road Solutions • Global transport management system • One primary transport management system • Global warehouse management system • Off-the-shelf system • New TMS planned as
Slide 45: Digital capabilities and logistical capabilities
Broad and deep service offerings based on a solid IT platform DSV is uniquely positioned to combine logistical and digital capabilities Utilising our global platform to provide Winning formula to compete in the future complex supply chain solutions Digital capabilities Governance & change capacity D
Slide 46: Our technology trend radar
Our technology trend radar Tracking Quantum Metaverse computing Assessing Holographic Displays Telepresence AI Avatars Augmented reality Nanotechnology Pick and pack AMR’s Testing Automated Fully autonomous Mobile Robots trucks Micro mobility Hyperloop and Space access Circular supply High-Speed Rai
Slide 47: Financial details
Financial details SF» eS
Slide 48: 2026 financial targets (excluding Schenker acquisition)
2026 financial targets (excluding Schenker acquisition) 9M 2024 actual 2026 targets Assumptions • The 2026 financial targets are exclusive of the DSV Group (%) announced Schenker acquisition and will be revised when the transaction closes. • The negative volume trends for Air & Sea in Conversion rat
Slide 49: Earnings per share
Earnings per share • Flexible and scalable business model • Performance driven organisation • Strong M&A track record • 18% CAGR* in EPS from 2014 – 9M 2024 LTM • Graph illustrates diluted adjusted earnings per share of DKK 1 18% CAGR* 2014 – 9M 2024 81.4 58.7 50.9 53.8 26.5 22.1 22.1 18.4 10.5 12.9
Slide 50: Financial performance over the years
Financial performance over the years Revenue (DKKm) Gross profit (DKKm) 240,000 56,000 210,000 49,000 180,000 42,000 150,000 35,000 120,000 28,000 90,000 21,000 60,000 14,000 30,000 7,000 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAGR* 13
Slide 51: Financial performance per division
Financial performance per division DSV Group DSV Air & Sea EBIT DKKm Conversion ratio Operating margin EBIT DKKm Conversion ratio Operating margin 28,000 49% 21,000 70% 24,000 42% 18,000 60% 20,000 35% 15,000 50% 16,000 28% 12,000 40% 12,000 21% 9,000 30% 8,000 14% 6,000 20% 4,000 7% 3,000 10% 0 0%
Slide 52: Cash flow and ROIC
Cash flow and ROIC Operating cash flow (DKKm) Cash conversion ratio* (%) 28,000 175% 24,000 150% 20,000 125% 97% 98% 16,000 100% 12,000 75% 8,000 50% 4,000 25% 0 0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Average: 99% * Cash conversion rati
Slide 53: Divisional and geographical exposure 9M 2024
Divisional and geographical exposure 9M 2024 Gross profit by division Gross profit by region Air & Sea EMEA 57% 59% Road Americas 19% 24% Solutions APAC 24% 17% EBIT before special items by division EBIT before special items by region Air & Sea EMEA 72% 52% Road Americas 13% 24% Solutions APAC 15% 2
Slide 54: DSV trade lane exposure vs. market (volume)
DSV trade lane exposure vs. market (volume) Air freight Sea freight Asia-Europe 34% Asia-Europe 37% (both ways) 30% (both ways) 24% Trans-Pacific 16% Trans-Pacific 19% (both ways) 21% (both ways) 20% Trans-Atlantic 24% Trans-Atlantic 15% (both ways) 17% (both ways) 10% 4% 12% Intra APAC Intra APAC 1
Slide 55: Capital structure and capital allocation
Capital structure and capital allocation Management commentary Financial gearing Net interest-bearing debt below 2.0x EBITDA before target special items. Free cash flow 1. Repayment of debt (if above target gearing priorities ratio). 2. Value-adding investments in the form of acquisitions or develop
Slide 56: P&L details - Group
P&L details - Group Group (DKKm) FY 2019 FY 2020 FY 2021 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 YTD 2024 Revenue 94,701 115,932 182,306 235,665 40,954 37,727 35,576 36,528 150,785 38,340 41,157 44,095 123,592 Direct costs 70,947 87,398 144,691 183,516 29,563 26,396 2
Slide 57: P&L details – Air & Sea
P&L details – Air & Sea Air & Sea (DKKm) FY 2019 FY 2020 FY 2021 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 YTD 2024 Divisional revenue 51,151 73,689 131,901 174,431 26,213 22,993 21,912 21,854 92,972 22,716 24,616 28,416 75,748 Direct costs 38,634 56,780 108,132 139,807
Slide 58: P&L details – Road and Solutions
P&L details – Road and Solutions Road (DKKm) FY 2019 FY 2020 FY 2021 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 YTD 2024 Divisional revenue 31,621 30,395 35,416 41,507 10,094 9,650 9,036 9,375 38,155 10,425 10,561 9,967 30,953 Direct costs 25,465 24,257 28,321 33,596 8,1
Slide 59: Balance sheet
Balance sheet (DKKm) Assets 30.09.2024 30.09.2023 Variance 31.12.2023 Equity and liabilities 30.09.2024 30.09.2023 Variance 31.12.2023 Intangibles assets 76,455 78,106 (1,651) 77,106 DSV shareholders’ share of equity 71,940 70,179 1,761 68,703 Right-of-use assets 18,117 15,862 2,255 15,655 Non-contr
Slide 60: Investor Relations
Investor Relations Share information Financial calendar 2025 Investor Relations contacts DSV A/S is listed on the Copenhagen stock 04 Feb. 2025 Annual Report 2024 DSV A/S exchange under the symbol ‘DSV’. Hovedgaden 630, 2640 Hedehusene, Denmark investor@dsv.com 20 Mar. 2025 Annual General Meeting 20