Slide 1: Full Year 2017 Results
FULL YEAR 2017 RESULTS Conference call – 8 February 2018, 11.00 am 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 developments and results to differ materially from the expectations contained in th
Slide 3: Agenda
Agenda 1 Highlights 2 Outlook for 2018 3 Business segments 4 Financial review 5 2020 financial targets 6 Q&A 3 | 2017 Annual Report
Slide 4: Highlights 2017
Highlights 2017 • Strong financial results driven by successful UTi integration and operational performance • Accelerating volume growth in the second half of 2017 • Adjusted free cash flow of DKK 4,835 million (2016: DKK 1.838 million) • Financial targets for 2020 revised upwards Q4-17 Gross profit
Slide 5: Outlook for 2018
Outlook for 2018 (DKKm) 2017 outlook 2017 actual 2018 outlook Operating profit before special items 4,700-4,900 4,878 5,000-5,400 Effective tax rate 23% 21% 23% Adjusted free cash flow 4,400 4,835 4,000 • In constant currencies we expect growth in operating profit before special items of 6-14% • The
Slide 6: Business segments – Air & Sea
Business segments – Air & Sea • EBIT growth of 53.2% and gross profit growth of 5.1% GP per TEU/tonne GP/tonne, DKK GP/TEU DKK • Market share gains in second half of 2017 – most 8.000 significant in air freight 6.000 6.471 7.004 6.897 6.501 6.199 • Yields were impacted by currency translation and 4.
Slide 7: Business segments – Road
Business segments – Road • EBIT growth of 15.9% and gross profit growth of 4.5% Key financial ratios Gross margin Conversion ratio • Gross profit and EBIT were positively affected by a gain 30% 24,3% *adjusted for one-offs from property transactions of ~ DKK 125 million (Q1-17) 21,4% 19,3% • Tempora
Slide 8: Business segments – Solutions
Business segments – Solutions • EBIT growth of 28.2% and gross profit growth of 3.8% Key financial ratios Gross margin Conversion ratio 30% • Strong operational performance in 2017 lead to higher 25,6% profit margins 26,5% 20% 25,1% 24,0% 23,7% 23,4% 19,5% 18,6% 17,8% • Growth across several industr
Slide 9: Financial review Q4 and FY 2017
Financial review Q4 and FY 2017 (DKKm) Q4 Q4 Constant FY FY Constant • FY17 was impacted by one extra 2017 2016 Variance currencies 2017 2016 Variance currencies month of UTi activities Net revenue 19,019 17,617 8.0% 11.6% 74,901 67,747 10.6% 11.8% Gross profit 4,054 3,998 1.4% 4.8% 16,605 15,838 4.
Slide 10: Diluted adjusted earnings per share (DKK)
Diluted adjusted earnings per share (DKK) 18,4 13,4 12,9 10,5 10,1 9,5 7,8 5,8 6,1 6,2 4,5 3,9 3,4 1,9 2,3 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CAGR 17.6% 10 | 2017 Annual Report
Slide 11: Financial review FY 2017 – cash flow and debt
Financial review FY 2017 – cash flow and debt (DKKm) FY FY 2017 2016 • Adjusted free cash flow was above latest EBITDA 5,664 4,250 outlook, primarily due to NWC performance Change in net working capital 944 -1,158 Provisions -279 -168 • NWC reduced to 1.9% of net revenue at year Special items -488 -
Slide 12: Allocation to shareholders
Allocation to shareholders • The ongoing DKK 1.25 billion share buyback will run until 23 March 2018 • Proposed dividend for 2017 is DKK 2.00 per share • In 2017 3.3 million shares were bought back at an average price of DKK 466.3 per share • The purpose of the share buyback programmes is to adjust
Slide 13: Financial targets 2020 - update
Financial targets 2020 - update FY 2017 Revised targets Previous targets • Targets for Air & Sea and DSV Group raised DSV Group % % % • 2020 timeline maintained Operating margin 6.5% 7.5% 7.0% Conversion ratio 29.4% 32.5% 30.0% • New IFRS leasing standard will be implemented in ROIC (pre tax) 23.4%
Slide 14: Teleconference dial-in numbers
To attend the teleconference, please dial on of the following phone number: Danish participants + 45 35 44 55 83 International participants +44 (0) 203 194 0544 US participants +1 855 269 2604 To ask questions press "0" and then "1" 14 | 2017 Annual Report
Slide 15: Appendix
Appendix 15 | 2017 Annual Report
Slide 16: Regional development Q4 2017 (DKKm)
Regional development Q4 2017 (DKKm) Gross profit* EBIT before special items* 3,998 +1% 4,054 +29% 1,196 929 699 58% EMEA 2,643 +6% 2,796 66% 69% +32% 528 57% 215 18% 580 +16% APAC 536 185 15% 20% -7% 13% 282 AMERICAS 775 722 216 +31% 24% 19% 18% 23% -7% Q4 2016 Q4 2017 Q4 2016 Q4 2017 *) Growth % in
Slide 17: Regional development FY 2017 (DKKm)
Regional development FY 2017 (DKKm) Gross profit* EBIT before special items* +5% 16,605 +40% 4,878 15,838 3,475 2,697 55% +5% 11,260 EMEA 10,674 68% 67% +31% 2,051 59% 906 19% 2,127 2,212 +40% APAC 14% +4% 13% 648 19% 1,275 3,037 3,133 776 +64% 26% AMERICAS 19% 19% +3% 22% FY 2016 FY 2017 FY 2016 FY
Slide 18: Quarterly P&L details
Quarterly P&L details DSV (DKKm) FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Net revenue 50,869 50,869 15,319 15,319 17,606 17,606 17,205 17,205 17,617 17,617 67,747 67,747 18,223 18,223 18,924 18,924 18,735 18,735 19,019 19,019 74,901 74,901 Direct costs
Slide 19: Quarterly P&L details – Air & Sea
Quarterly P&L details Air & Sea (DKKm) FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Divisional net revenue 21,685 7,055 8,416 8,282 8,347 32,100 8,470 8,873 9,044 8,817 35,204 Direct costs 16,394 5,178 6,108 6,159 6,317 23,762 6,354 6,656 6,845 6,725 26,580
Slide 20: Quarterly P&L details – Solutions
Quarterly P&L details Solutions (DKKm) FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Divisional net revenue 5,960 2,043 2,406 2,492 2,742 9,683 2,678 2,913 2,757 3,014 11,362 Direct costs 4,540 1,507 1,737 1,808 2,015 7,067 2,007 2,223 2,111 2,291 8,632 Gros
Slide 21: Investor contact information
Investor contact information Share information Financial calendar 2018 DSV shares are listed on the stock exchange in 8 Feb. 2018 Annual Report 2017 Copenhagen under the symbol ‘DSV’. For further company information, please visit DSV’s 8 Mar. 2018 Annual General Meeting website at: www.dsv.com 1 May