Slide 1: Full-Year 2023 Results
FULL-YEAR 2023 RESULTS DSV A/S Conference call 1 February 2024, 11:00 am CET
Slide 2: Agenda
Agenda • Highlights • Business segments • Financial review • Outlook for 2024 • Our executive management team • 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 D
Slide 3: Highlights
Highlights • Good financial performance in soft markets. EBIT for 2023 in line with our guidance. • Solid cash flow and DKK 15.4 billion allocated to shareholders in 2023. • Eventful year with key focus on our organic growth strategy and NEOM joint venture. • EBIT guidance 2024: DKK 15.0 – 17.0 bill
Slide 4: Air & Sea
Air & Sea Management commentary (DKKm) Q4 2023 Q4 2022 Growth* FY 2023 FY 2022 Growth* • Gross profit and EBIT impacted by Gross profit Air 3,030 4,063 (22.7%) 13,420 18,603 (25.5%) lower volumes and lower yields compared to the extraordinary 2022. Gross profit Sea 2,949 3,214 (4.1%) 12,550 16,021 (
Slide 5: Air freight Q4 2023
Air freight Q4 2023 • Negative volumes on most major trade lanes in 2023 – most significantly on Trans-Pacific. • Volume trends improved towards the end of the year. • Gross profit levels are stabilising. Gross profit (DKKm) Volume & yields YoY change: (23%)* Yield YoY change: (16%)* FX impact: (3%)
Slide 6: Sea freight Q4 2023
Sea freight Q4 2023 • During 2023, the Trans-Pacific and Trans-Atlantic trade lanes saw the weakest performance. • Volume turned positive (year-on-year) in Q4-23 – partly due to easier comparison figures. • Gross profit levels seem to be stabilising. • Q4-2023 was not impacted by Red Sea situation.
Slide 7: Road
Road Management commentary (DKKm) Q4 2023 Q4 2022 Growth* FY 2023 FY 2022 Growth* • Market characterised by declining activity and lower rates – especially towards the Revenue 9,375 10,078 (5.7%) 38,155 41,507 (6.4%) end of 2023. • The division performed well under these Gross profit 1,937 1,910 2.6
Slide 8: Solutions
Solutions Management commentary (DKKm) Q4 2023 Q4 2022 Growth* FY 2023 FY 2022 Growth* • During 2023, most industries were impacted by the general decline in Revenue 6,079 6,224 0.2% 23,140 24,409 (2.4%) global trade, but momentum improved towards year end. Good momentum in e-commerce sector. Gross
Slide 9: P&L 2023
P&L 2023 Management commentary (DKKm) Q4 2023 Q4 2022 Growth* FY 2023 FY 2022 Growth* Headlines • During 2023, revenue was impacted by lower freight rates and declining Revenue 36,528 51,231 (26.3%) 150,785 235,665 (34.1%) volumes. Gross profit 10,447 11,656 (7.5%) 43,818 52,149 (13.4%) • Gross marg
Slide 10: Cash flow and financial ratios
Cash flow and financial ratios (DKKm) FY 2023 FY 2022 Variance Management commentary EBITDA before special items 22,997 30,275 (7,278) • Cash conversion ratio for the year was Change in working capital 826 2,840 (2,014) close to 100%. Tax, interest, change in provisions, etc. (7,102) (5,605) (1,497)
Slide 11: Allocations to shareholders
Allocations to shareholders Management commentary • Proposed dividend of DKK 7.00 per share for 2023. • 11.1 million shares bought back in 2023 at an average price of DKK 1,264. • New safe harbour share buyback programme of DKK 1.0 billion starting 1 February 2024 and running until 23 April 2024. •
Slide 12: Outlook 2024
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, but our strategic growth initiatives may only hav
Slide 13: Group Executive Committee
Group Executive Committee Setting a new – and highly experienced – team Group CEO Group CFO Jens H. Lund Group COO Michael Ebbe Brian Ejsing CEO, DSV Air & Sea CEO, DSV Road CEO, DSV Solutions Group CCO Group CIO Frank Sobotka* Søren Schmidt Albert-Derk Bruin Morten Landry Jesper Riis *) Carsten Tro
Slide 14: 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 15: 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. • We assume that annual GDP growth will be Conversion ratio 40.4 >45.0 around 3% and transport market g
Slide 16: 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 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 Direct costs 70,947 87,398 144,691 48,248 48,671 47,022 39,5
Slide 17: 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 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 Direct costs 38,634 56,780 108,132 37,250 3
Slide 18: 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 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 Direct costs 25,465 24,257 28,321 8,250 8,76
Slide 19: Balance sheet
Balance sheet (DKKm) Assets 31.12.2023 31.12.2022 Variance Equity and liabilities 31.12.2023 31.12.2022 Variance Intangibles assets 77,106 77,674 (568) DSV shareholders’ share of equity 68,703 71,519 (2,816) Right-of-use assets 15,655 14,694 961 Non-controlling interests 263 222 41 Property, plant a
Slide 20: 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