Capital Markets Day 2011

Transcription

1 Capital Markets Day 2011 Business update and strategy CEO Jens Bjorn Andersen Capital Markets Day 6 September 2011

2 Agenda 1. Meet DSV in action in Horsens 2. The DSV culture 3. Historical performance a resilient business model 4. Expected global transport volume growth in Performance relative to market Geographical footprint 7. Market position 8. Growth strategy 9. CSR objectives 10. IT landscape 11. Q&A 2 Capital Markets Day, 6 September 2011

3 Meet DSV in Action in Horsens Why have we asked you to come here? We hope that you will get a first-hand impression and better understanding of DSV s services We are proud to be able to show one of Europe s largest and most likely most efficient freight terminals Bigger is better a trend in the industry 3 Capital Markets Day, 6 September 2011

4 Meet DSV in Action in Horsens All DSV divisions on one location Air & Sea (incl. Project Department), Road and Solutions are all present Optimises cross-selling opportunities and enables DSV to offer the optimal product to the customers This also optimises the utilisation of terminal and back office functions Pioneers of DSV Horsens and the Danish Road organisation are in many ways pioneers of DSV This is where we optimise operational procedures and develop IT systems that support our operations DSV s market share in Denmark is unique and this enables us to optimise procedures for the benefit of the entire Group Horsens and Denmark are not the only pioneers of DSV it is part of the DSV culture to copy or learn from best practice procedures, and the good examples can come from anywhere in the Group 4 Capital Markets Day, 6 September 2011

5 The DSV culture Strong and entrepreneurial company culture Loyal and hands-on management High degree of internal transparency Internal competition on many levels between divisisions, countries, branches etc. Visible for staff at all levels how they perform focus on KPIs and benchmarking Local management has freedom to optimise the business within the framework and rules set by Group and Divisional managements Strong M&A track record 5 Capital Markets Day, 6 September 2011

6 Historical performance a resilient business model EBITA (mdkk) EBITA margin Gross Profit conversion ratio 82.2% 2,400-2, % 2, % 1,882 1,936 1,504 1, % 42.2% 1, % 24.1% 24.4% 22.1% 22.1% 23.7% 23.6% 24.8% 21.8% 19.2% 19.1% 22.2% 12.2% 4.4% 4.9% 4.7% 4.9% 4.7% 5.4% 5.2% 4.7% 5.2% 5.4% 2.2% * *) 2011 GP margin and Conversion Ratio are based on the middle of the guided ranges 6 Capital Markets Day, 6 September 2011

7 Historical performance a resilient business model The graph illustrates the development in number of employees and transport volume Employees Employees Volume, index Productivity index, rolling 25,000 20,000 15,000 10,000 5,000 Volume index Q Q Q Q Q Q Q Q Q Q Q Q2 0 Volume index: weighted average for the divisions (base Q3 2008) Productivity index: volume index/employee index (base Q3 2008) 7 Capital Markets Day, 6 September 2011

8 Expected global transport volume growth in 2011* Seafreight volume is expected to grow by 4-6% Airfreight volume is expected to grow by 0-2% Roadfreight volume is expected to grow by 2-3% Solutions orderlines are expected grow by 2-3% It is DSV s target to grow faster than the market in all divisions. *) as stated in the H interim financial report 8 Capital Market Day, 6 September 2011

9 Performance relative to market* % 25% Market DSV 35% 25% Market DSV 15% 15% 5% 5% -5% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11-5% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q % 20% 15% Market DSV 15% Market DSV 10% 10% 5% 5% 0% 0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 *) Global market growth is based on DSV s estimates 9 Capital Market Day, 6 September 2011

10 Geographical footprint Strong presence Medium presence Light presence Agent network 10 Capital Markets Day, 6 September 2011

11 Source: SJ Consulting Group, quoted in Journal of Commerce Market position Ranking of Third Party Logistics providers by 2010 revenue, in USDbn 1. DHL Logistics 2. Kuehne + Nagel 3. DB Schenker 4. CEVA Logistics 5. C.H. Robinson 6. DSV 7. Panalpina 8. SNCF Geodis 9. UPS SCS 10. Expeditors 11. Sinotrans 12. Agility Logistics 13. DACHSER & Co. 14. UTI Worldwide 15. Toll Holdings* Home country Germany Switzerland Germany Netherlands USA Denmark Switzerland France USA USA China Kuwait Germany USA Australia 11 Capital Market Day, 6 September 2011

12 Market position Air & Sea DSV is a top 10 player (Ranking by 2010 revenue) 9.4% 56.2% 8.7% 2.4% 2.2% 2.1% 2.8% 5.8% 4.0% 3.3% 3.1% Kuehne + Nagel (9.4%) DHL (8.7%) DB Schenker (5.8%) Panalpina (4.0%) Expeditors (3.3%) Sinotrans (3.1%) CEVA (2.8%) Agility (2.4%) UPS SCS (2.2%) DSV (2.1%) Others (56.2%) Source: Transport Intelligence 12 Capital Markets Day, 6 September 2011

13 Revenue, EURm Market position Road DSV ranks number 3 in Europe (Ranking by 2010 revenue) 6,000 5,000 4,000 3,000 2,000 1,000 0 DB Schenker DHL DSV Dachser Geodis K+N GEFCO N. Dentressangle LKW Walter Rhenus Source: Transport Intelligence 13 Capital Markets Day, 6 September 2011

14 Growth strategy Organic growth It is DSVs target to gain market shares in all divisions by focus on sales Green field approach is an option in certain areas Road / Solutions with more global coverage Pursue cross selling opportunities M&A Add volume to existing network and strengthen global footprint in Air & Sea focus on local and regional companies Bolt-on type acquisitions in Road Project logistics is an attractive area 14 Capital Market Day, 6 September 2011

15 CSR objectives DSV has joined the UN Global Compact initiative Important elements of the CSR policy are Environment/climate Employees/working environment Business ethics/anti-corruption In 2011 the Supervisory Board has adopted a series of objectives for the future CSR work of DSV 15 Capital Markets Day, 6 September 2011

16 CSR objectives Example of an objective Environment: DSV must improve its energy efficiency per transport assignment (CO 2 /tonne-km) by 15% by 2015 compared with 2010 figures Activities launched: Subcontractors required to work on lowering their CO 2 emissions At least 50% of the vehicles used by the Road Division (own and subcontractors) must have Euro 5 engines or better in % of all DSV buildings must have automatic energy control systems or be screened for potential energy savings in 2015 Continued internal focus on capacity utilisation and route planning 16 Capital Markets Day, 6 September 2011

17 IT landscape Overall target: One Transport Management System for each division Air & Sea Road Solutions Sales & back office edienterprise Off-the shelf system Currently used in Asia, Americas and part of Europe Rollout ongoing in Europe Cargolink Legacy system Used throughout Europe with a few exceptions Old platform however very functional and scalable Cargowrite (based on Red Prairie) Rollout ongoing in Europe Salesforce.com SAP in Europe Master Data Management 17 Capital Markets Day, 6 September 2011

18 Q&A Q.A. 18 Capital Markets Day, 6 September 2011