Slide 1: Q3 2015 Investor Presentation
Q3 2015 Investor Presentation Analyst conference call – 28 October 2015, 2.00 p.m. CET Presentation available at investor.dsv.com
Slide 2: Forward-looking statements
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 DSV A/S control, may cause actual development and results to differ materially from the expectations contained in the
Slide 3: Agenda
Agenda 1 Highlights Q3 2015 2 Revised outlook for 2015 3 Business segments 4 Financial review 5 Update on UTi Worldwide Inc. transaction 6 Q&A 3 | Q3 2015 Interim Financial Report – 28 October 2015
Slide 4: Highlights Q3 2015
Highlights Q3 2015 EBIT Q3 2015 (DKKm) • Solid above market growth in transport volumes 851 • 4.5% organic growth in gross profit 9.9% 728 6.3% • 9.9% organic growth in EBIT before special items • EPS growth of 22.9% in Q3-15 Q3 2014 FX Organic Q3 2015 • We adjust the financial outlook for 2015 EBIT
Slide 5: Adjusted outlook for 2015
Adjusted outlook for 2015 Financial outlook 2015 (DKKm) 2015 previous 2015 adjusted Gross profit 10,900-11,200 11,000-11,200 EBIT before special items 2,850-3,000 2,950-3,050 Net financial expenses 300 300 Effective tax rate 25% 25% Adjusted free cash flow excl. M&A 2,100 2,200 The financial outlook
Slide 6: Business segments Q3 2015 – Air & Sea
Business segments Q3 2015 – Air & Sea Highlights Q3 (DKKm) Q3 Q3 Growth 9M 9M Growth 2015 2014 Var. FX 2015 2014 Var. FX • Air freight volume growth of 10% in Q3-15 Net revenue 5,379 5,672 -5.2% 4.2% 16,503 16,181 2.0% 6.1% Gross profit 1,367 1,185 15.4% 6.0% 3,945 3,389 16.4% 8.0% EBIT* 541 435 24.
Slide 7: Business segments Q3 2015 – Road
Business segments Q3 2015 – Road Highlights Q3 Q3 Q3 Growth 9M 9M Growth (DKKm) • 4% growth in consignments in Q3-15 2015 2014 Var. FX 2015 2014 Var. FX Net revenue 6,044 5,984 1.0% -0.5% 18,464 18,110 2.0% -0.4% • Decline in GP margin in the quarter is Gross profit 1,078 1,061 1.6% 0.1% 3,393 3,256
Slide 8: Business segments Q3 2015 – Solutions
Business segments Q3 2015 – Solutions Highlights Q3 Q3 Q3 Growth 9M 9M Growth (DKKm) • 6% growth in order lines 2015 2014 Var. FX 2015 2014 Var. FX Net revenue 1,476 1,441 2.4% 0.1% 4,416 4,186 5.5% 0.3% • Growth from new and existing Gross profit 359 350 2.6% 1.1% 1,047 1,026 2.0% 1.0% EBIT* 75 71
Slide 9: Financial review Q3 and 9M 2015 – P&L
Financial review Q3 and 9M 2015 – P&L (DKKm) Q3 Q3 Growth 9M 9M Growth • Tailwind from currency is easing off in 2015 2014 Var. FX 2015 2014 Var. FX Gross profit 2,802 2,609 7.4% 2.9% 8,371 7,682 9.0% 3.7% Q3-15 Other external costs 505 517 -2.3% 1.4% 1,598 1,526 4.7% 2.7% Staff costs, white-collar
Slide 10: Financial review 9M 2015 – cash flow and debt
Financial review 9M 2015 – cash flow and debt (DKKm) 9M 9M • Cash flow from operating activities 2015 2014 positively affected by the improved results EBITDA 2,686 2,364 Change in net working capital -162 -472 • Satisfactory net working capital Change in provisions (incl. special items) -130 175 Cor
Slide 11: Share buyback and dividend
Share buyback and dividend • No share buyback announced for Q4-15 due to the expected UTi transaction • 2.2 million shares bought back in Q3 2015 at an average price of DKK 239.3 per share • DSV holds 9.3 million treasury shares as per 28 October 2015 Announced allocations to shareholders 2015 (DKKm
Slide 12: UTi transaction – update
UTi transaction – update – Creating one of the world's strongest transport and logistics networks Conditionality • The Boards of Directors of DSV and UTi have unanimously approved the transaction • UTi’s largest shareholder, holding approximately 10.8% of the ordinary shares supports the transaction
Slide 13: UTi Transaction – simplified timeline
UTi Transaction – simplified timeline 9 October 2015 Q1 2016 Announcement Filing to relevant UTi shareholder Regulatory Expected closing of agreement authorities vote at EGM approvals obtained and conditions fulfilled Announced reporting dates • 3 December 2015 UTi interim Q3-16 reporting 13 | Q3 20
Slide 14: To attend the teleconference, please dial one of the following phone numbers
To attend the teleconference, please dial one of the following phone numbers: Danish participants + 45 70 22 35 00 International participants +44 (0) 207 572 1187 US participants +1 646 722 4972 Passcode: 53719721# To ask questions press "0" and then "1" 14 | Q3 2015 Interim Financial Report – 28 Oc
Slide 15: Slide 15
Slide 16: Appendix
Appendix 16 | Q3 2015 Interim Financial Report – 28 October 2015
Slide 17: Regional development Q3 2015 (DKKm)
Regional development Q3 2015 (DKKm) Gross profit* EBIT before special items* +7% 2,802 851 +17% 2,609 586 169 21% 728 20% 581 +1% Nordic countries 22% +3% 164 97 23% 478 12% 17% +33% Southern Europe** 438 +9% 17% 73 10% 276 32% 1,091 266 +4% 39% 36% Other Europe + EMEA 1,089 42% +0% 130 15% +31% 99
Slide 18: Regional development 9M 2015 (DKKm)
Regional development 9M 2015 (DKKm) Gross profit* EBIT before special items* +9% 8,371 2,301 +17% 7,682 1,792 445 21% 1,975 19% -1% Nordic countries 1,809 -7% 24% 477 253 24% 11% 1,443 17% +18% 1,348 +7% Southern Europe** 18% 214 11% 763 33% 3,273 +13% 678 39% 34% Other Europe + EMEA 3,126 +5% 40% 3
Slide 19: Market share gains in a competitive market
Market share gains in a competitive market – DSV freight volumes versus market Air Sea DSV Market DSV Market 16% 16% 12% 12% 8% 8% 4% 4% 0% 0% -4% -4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2015 2013 2014 2015 Road Solutions DSV Market (Europe) DSV Market (Europe
Slide 20: Quarterly P&L details
Quarterly P&L details DSV Group (DKKm) Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014 Q1 2015 Q2 2015 Q3 2015 Revenue 10,981 11,406 11,466 11,857 45,710 11,602 12,162 12,279 12,539 48,582 12,601 13,127 12,535 Direct costs 8,577 8,853 8,944 9,331 35,705 9,137 9,554 9,
Slide 21: Quarterly P&L details
Quarterly P&L details Air & Sea (DKKm) Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014 Q1 2015 Q2 2015 Q3 2015 Revenue 4,726 5,000 5,171 5,298 20,195 5,024 5,485 5,672 5,820 22,001 5,421 5,703 5,379 Direct costs 3,732 3,910 4,074 4,181 15,897 3,970 4,335 4,487 4,633 1
Slide 22: Quarterly P&L details
Quarterly P&L details Solutions (DKKm) Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 FY 2014 Q1 2015 Q2 2015 Q3 2015 Revenue 1,344 1,372 1,374 1,380 5,470 1,345 1,400 1,441 1,543 5,729 1,440 1,500 1,476 Direct costs 996 1,012 1,018 1,035 4,061 1,015 1,054 1,091 1,173 4,333
Slide 23: Investor contact information
Investor contact information Share information Financial calendar 2016 DSV shares are listed on the stock exchange in Financial calendar 2016 not yet announced Copenhagen under the symbol ‘DSV’. For further company information, please visit DSV’s website at: www.dsv.com Investor Relations contacts D