DSV, 1086 - 2023 ANNUAL REPORT

Company Announcement No. 1086

CEO Jens Bjørn Andersen:“DSV delivered solid financial results for 2023, in line with our expectations. In a market characterised by declining demand for transport services across most markets, we demonstrated our ability to adapt to changing market conditions, and our dedicated employees continued to deliver excellent customer service. During 2023, we were happy to announce an exclusive logistics joint venture with NEOM Company, and we have continued the work to strengthen our network services and industry expertise. We also made important progress on the sustainability agenda, developing roadmaps for our decarbonisation efforts.

Today, the previously announced changes to our executive management team will take effect, and this is my last day as Group CEO. I would like to take this opportunity to thank customers, suppliers and partners – and not least my fantastic DSV colleagues across the globe – for your support and confidence in DSV and me over the years. Jens Lund and a strong team around him are now ready to take over and continue DSV’s journey, and I wish everybody all the best.”

Selected key figures and ratios for the period 1 January - 31 December 2023

	Q4 2023		Q4 2022	YTD 2023	YTD 2022
Key figures (DKKm)
Revenue		36,528	51,231	150,785	235,665
Gross profit		10,447	11,656	43,818	52,149
Operating profit (EBIT) before special items		3,950	4,749	17,723	25,204
Special items, costs		-	-	-	1,117
Profit for the period		2,937	3,789	12,407	17,671
Adjusted earnings for the period				12,650	18,765
Adjusted free cash flow				11,471	22,810
Proposed dividend per share (DKK)				7.00	6.50
Ratios
Operating margin (%)		10.8	9.3	11.8	10.7
Conversion ratio (%)		37.8	40.7	40.4	48.3
Diluted adjusted earnings per share of DKK 1 for the last 12 months				58.7	81.4
Operating profit (EBIT) before special items
Air & Sea		2,882	3,816	13,363	20,658
Road		467	451	2,009	2,040
Solutions		610	546	2,355	2,701

Q4 2023 results
For Q4 2023, revenue amounted to DKK 36,528 million (Q4 2022: DKK 51,231 million). The decline of 26.3% (in constant currencies) was mainly due to lower freight rates and declining volumes in the Air & Sea division. This was largely a continuation of the trends from previous quarters, but with signs of stabilisation, mainly in sea freight where the volume growth turned positive towards the end of the year.

For Q4 2023, gross profit came to DKK 10,447 million (Q4 2022: DKK 11,656 million). The decline of 7.5% (in constant currencies) was primarily due to lower air volumes and a continued normalisation of gross profit yields.

EBIT before special items was DKK 3,950 million for Q4 2023 (Q4 2022: DKK 4,749 million), a decline of 13.9% (in constant currencies). All three divisions performed in line with expectations. In the Air & Sea division, the decline in gross profit was partly offset by cost reductions, while Road and Solutions both achieved growth in EBIT in Q4 2023.

EBIT before special items for the year was DKK 17,723 million and was within the guidance range of DKK 17,500-18,500 million.

Outlook for 2024

• EBIT before special items is expected to be in the range of DKK 15,000 - 17,000 million.
• The effective tax rate of the Group is expected to be approximately 24%.

The outlook assumes global GDP growth around 3% in 2024, and that the markets for air and sea freight will grow 3-4% in 2024. We target profitable, above market growth, but our strategic growth initiatives may only have a gradual impact in 2024.

For Road, we expect a flat or low-growth market, while the market for Solutions (contract logistics) is expected to see higher growth rates in 2024.

We continue to monitor activity closely across our organisation and adjust capacity and cost base accordingly.

We assume that the currency exchange rates, especially the US dollar against DKK, will remain at the current level.

The geopolitical and macroeconomic environment remains uncertain, and unforeseen changes may therefore impact our financial results.

New share buyback programme
A separate company announcement about a new share buyback programme of DKK 1,000 million will be issued today. The programme starts 1 February 2024 and will run until 23 April 2024.

Dividend
The Board of Directors proposes ordinary dividends of DKK 7.00 per share for 2023 (2022: DKK 6.50 per share).

Investor teleconference
DSV will host an investor teleconference on 1 February 2024, at 11.00 CET. Please refer to investor.dsv.com for details.

Contacts
Investor Relations: Flemming Ole Nielsen, tel. +45 43 20 33 92, flemming.o.nielsen@dsv.com
Media: Christian Krogslund, tel. +45 43 20 41 28, christian.krogslund@dsv.com

Yours sincerely,
DSV A/S

Attachments

• 1086 - Announcement (01.02.2024) - 2023 ANNUAL REPORT
• DSV-2023-12-31-en

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