Dsv A/s · OMXCOP:DSV
Dsv A/s — Q1 2014 Earnings Presentation
21 slides from Dsv A/s's earnings presentation, Apr 30, 2014
Slide 1: Q1 2014 Investor Presentation
Q1 2014 Investor Presentation Analyst conference call – 30 April 2014, 2.00 p.m. CET Presentation available at www.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 Q1 2014 2. Business segments 3. Financial review, cash flow and capital allocation 4. Operational Excellence 2.0 – update 5. Q&A 3 | Q1 2014 Interim Financial Report – 30 April 2014
Slide 4: Highlights Q1 2014
Highlights Q1 2014 • Transport markets have developed as expected in terms of volume growth • DSV is gaining market share • Competitive environment continues • EBIT growth of 7.3% in Q1 2014 – driven by Air & Sea • Operational Excellence 2.0 on track to deliver expected savings • Share buyback progr
Slide 5: Business segments – Air & Sea
Business segments – Air & Sea • Sea freight – volume growth of 10% (approx. 4% from M&A) • Air freight – volume growth of 12% (approx. 2% from M&A) • GP/unit negatively impacted by currency translation and competitive pricing – Growth in large accounts • Strong EBIT performance in Q1 2014 with 11.9%
Slide 6: Gross profit per unit – Air & Sea
Gross profit per unit – Air & Sea Air Sea Gross profit per tonne, DKK Gross profit per TEU, DKK 6,866 7,179 6,966 7,107 6,954 6,738 6,586 3,318 3,248 3,242 3,234 3,144 3,224 3,142 Full year Full year Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Full year Full year Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Slide 7: Business segments – Road
Business segments – Road • 5% volume growth (approx. 1% from M&A) – Positive trend across most countries in Europe • 2% organic growth in gross profit – Gross margin remains under pressure • EBIT for Q1 2014 on level with Q1 2013 – Cost base impacted by integration of Ontime Logistics Q1 Growth deta
Slide 8: Business segments – Solutions
Business segments – Solutions • 2% growth in order lines in Q1 2014 – In line with market • 4.6% organic decline in gross profit – Market remains competitive – Utilisation and activity levels too low in certain areas • Cost base further reduced Q1 Growth details DKK million 2014 2013 Var. Org. M&A F
Slide 9: Financial review Q1 2014
Financial review Q1 2014 Q1 Growth details DKK million 2014 2013 Var. Org. M&A Fx • Gross profit positively impacted by volume, but this was partly offset by Net revenue 11,602 10,981 5.7% 4.5% 3.8% -2.6% yield pressure Gross profit 2,465 2,404 2.5% 3.1% 2.5% -3.0% EBIT before special items 546 509
Slide 10: Financial review – cash flow and debt
Financial review – cash flow and debt DKK million Q1 2014 Q1 2013 • Cash flow from operating activities EBITDA before special items 676 642 for Q1 2014 was positively impacted Cash flow from operating activities 558 275 by higher results, positive development in net working capital Cash flow from in
Slide 11: Share buyback and dividend
Share buyback and dividend • New share buyback programme of DKK 400 million according to safe harbour method launched on April 30 2014 and running until 29 July 2014 • The purpose of the share buyback is to meet the exercise of share options under the Group's incentive schemes and adjust the capital
Slide 12: Operational Excellence 2.0 – update
Operational Excellence 2.0 – update • The initiatives are expected to deliver cost savings of DKK 150 million per year • P&L effect of approx. DKK 50 million in H2 2014 • Full year P&L effect expected in 2015 • Impact from cost savings mainly in Road and Solutions • Headlines • Consolidation and opt
Slide 13: 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 32 72 80 18 International participants UK +44 (0) 844 571 8957 US +1 866 682 8490 Int. +44 (0) 1452 555131 To ask questions press “* 1” 13 | Q1 2014 Interim Financial Report – 30 April 2014
Slide 14: Backup slides
B MALE A Backup slides
Slide 15: Regional development Q1 2014 (DKK million)
Regional development Q1 2014 (DKK million) Gross profit* EBIT before special items* +3% 2,465 546 2,404 +7% 509 618 Nordic countries 583 +6% 25% 149 24% 27% 136 +10% 27% 442 54 Southern Europe** 457 (3%) 18% 45 20% 10% 19% 9% 173 185 (6%) 32% 36% 970 973 Other Europe / EMEA 40% 0% 39% 81 72 +13% 15%
Slide 16: Outlook for 2014 – reiterated
Outlook for 2014 – reiterated DKK million Actual 2013 Outlook 2014 Growth % Gross profit 10,005 10,100 - 10,500 +1% to +5% EBIT before special items 2,552 2,500 - 2,700 -2% to +6% Special items costs – Operational Excellence 2.0 300 Net financial expenses 298 300 Effective tax rate 26.1% 26% Adjuste
Slide 17: Long-term financial targets – timeframe extended, otherwise unchanged
Long-term financial targets – timeframe extended, otherwise unchanged Targets Actual 2013 DSV – total • We expect to reach the targets within 5 Profit margin 7% 5.6% years counting from 2013 Conversion ratio 30% 25.5% ROIC (pre tax) 25% 21.1% • Time horizon has been extended by 2 years due to lower
Slide 18: Keeping the cost base in line
Keeping the cost base in line Cost base – staff + other external costs (DKK million) The cost base has been stable for 3 2,000 consecutive years. 1,500 Inflationary increases of 1-2% per year and impact from M&A were absorbed by 1,000 cost control and productivity gains. 500 A number of initiatives
Slide 19: Gross profit per unit – Air & Sea “Old indexed format”
Gross profit per unit – Air & Sea “Old indexed format” Air Sea Gross profit per tonne Gross profit per TEU 2008 = Index 100 2008 = Index 100 102.8 100.6 100.4 100.0 100.0 99.7 99.8 100.2 97.4 97.3 92.9 91.1 85.8 83.3 85.0 82.4 82.1 83.1 81.3 78.7 Full Full Full Full Full Q1 Q2 Q3 Q4 Q1 Full Full Ful
Slide 20: Quarterly P&L details
Quarterly P&L details DSV (DKKm ) Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Q1 2014 Revenue 10,981 11,406 11,466 11,857 45,710 11,602 Direct costs 8,577 8,853 8,944 9,331 35,705 9,137 Gross profit 2,404 2,553 2,522 2,526 10,005 2,465 Other external expenses 520 504 489 497 2,010 512 Staff costs 1,242
Slide 21: Quarterly P&L details
Quarterly P&L details Road (DKKm ) Q1 2013 Q2 2013 Q3 2013 Q4 2013 FY 2013 Q1 2014 Revenue 5,666 5,800 5,686 5,964 23,116 6,024 Direct costs 4,609 4,688 4,614 4,906 18,817 4,945 Gross profit 1,057 1,112 1,072 1,058 4,299 1,079 Other external expenses 244 239 246 247 976 254 Staff costs 579 574 544 5