Slide 1: Half-Year 2024 Results
HALF-YEAR 2024 RESULTS DSV A/S Conference call 24 July 2024, 11:00 am CEST
Slide 2: Agenda
Agenda • Highlights • Business segments • 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 DSV A/S’ control, may
Slide 3: Highlights H1 2024
Highlights H1 2024 • Strong Q2 2024 with sequential growth in gross profit and EBIT – driven by positive volume growth across all divisions and stable yields. • Full-year 2024 EBIT guidance narrowed to DKK 15.5 - 17.0 billion (previously DKK 15-17 billion). • Cash flow impacted by increased activity
Slide 4: Air & Sea
Air & Sea Management commentary (DKKm) Q2 2024 Q2 2023 Growth* H1 2024 H1 2023 Growth* • Gross profit and EBIT in line with Gross profit Air 2,953 3,574 (16.7%) 5,848 7,301 (18.8%) expectations reflecting seasonality and continued market normalisation. Gross profit Sea 3,119 3,180 (1.0%) 5,987 6,480
Slide 5: Air freight Q2 2024
Air freight Q2 2024 • Sequential growth in gross profit and stabilising gross profit yields compared to previous quarter. • Strong volume growth and market share gains in our addressable market (i.e. excluding e-commerce and perishables). • Increase in Asia export volumes, especially from growth wit
Slide 6: Sea freight Q2 2024
Sea freight Q2 2024 • Strong sequential growth in gross profit and volumes from Q1 2024 to Q2 2024. • Volume growth in line with market with high growth in freight rates on the Trans-Pacific and Asia-Europe trade lanes in May and June. • Limited impact from the Red Sea situation in Q2 2024 – we expe
Slide 7: Road
Road Management commentary (DKKm) Q2 2024 Q2 2023 Growth* H1 2024 H1 2023 Growth* • Gross profit and EBIT growth despite a challenging market. Revenue 10,561 9,650 9.1% 20,986 19,744 6.2% • The strong results are driven by Gross profit 2,061 2,023 1.5% 4,025 3,999 0.4% market share gains in control
Slide 8: Solutions
Solutions Management commentary (DKKm) Q2 2024 Q2 2023 Growth* H1 2024 H1 2023 Growth* • Gross profit and EBIT growth driven by our campus strategy and Revenue 6,916 5,898 17.0% 12,905 11,523 12.3% the continued expansion of our global footprint. Gross profit 2,576 2,373 8.1% 4,977 4,658 7.0% • Acti
Slide 9: Update on the joint venture with NEOM
Update on the joint venture with NEOM Sourcing to NEOM from across the world • The logistics joint venture in the NEOM region is mobilised and ready to go live but awaiting final approvals from authorities. • No cash outflow until final approvals have been obtained. • Based on current plans, we expe
Slide 10: P&L H1 2024
P&L H1 2024 Management commentary (DKKm) Q2 2024 Q2 2023 Growth* H1 2024 H1 2023 Growth* Headlines • Strong financial results for Q2 2024 impacted by higher average freight Revenue 41,157 37,727 9.6% 79,497 78,681 2.0% rates and increased activity. Gross profit 10,841 11,331 (4.0%) 21,106 22,722 (6.
Slide 11: Cash flow and financial ratios H1 2024
Cash flow and financial ratios H1 2024 (DKKm) H1 2024 H1 2023 Variance Management commentary EBITDA before special items 10,541 11,963 (1,422) Cash flow Change in working capital (3,773) 2,540 (6,313) • Solid cash flow despite higher net Tax, interest, change in provisions, etc. (2,550) (3,491) 941
Slide 12: Allocations to shareholders
Allocations to shareholders Management commentary • Launch of new share buyback Announced share buyback programme of DKK 1.5 billion Share buyback (running 24 July 2024 to 22 Dividend October 2024). • 2.2 million shares bought back in H1 2024 at an average price of 20,313 DKK 1,131. 17,841 13,997 •
Slide 13: Narrowed outlook for 2024
Narrowed outlook for 2024 (DKKm) Updated outlook Previous outlook Actual 2023 EBIT before special items 15,500-17,000 15,000-17,000 17,723 Effective tax rate 24.0% 24.0% 24.8% Special items 650 - - Main assumptions • We expect air and sea markets will grow 3-4% in 2024. We continue to target profita
Slide 14: Key takeaways
Key takeaways Strong Q2 results with Continued focus on cost Narrowing the full- sequential growth and management and the year 2024 EBIT market share gains launch of operational guidance to DKK across all divisions. efficiency initiatives. 15.5 - 17.0 billion. 14
Slide 15: 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 16: 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 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 79,497 Direct costs 70,947 87,398 144,691 183,516 29,563 26,396 24,927 26,081 106
Slide 17: 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 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 47,332 Direct costs 38,634 56,780 108,132 139,807 19,186 16,239
Slide 18: 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 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 20,986 Direct costs 25,465 24,257 28,321 33,596 8,118 7,627 7,112
Slide 19: 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