FULL-YEAR
2020 RESULTS
DSV Panalpina A/S – Investor Presentation
Released 10 February 2021
1 | DSV Panalpina – Full-year 2020 results
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 Panalpina A/S’ control, may cause actual developments and results to
differ materially from the expectations contained in the presentation.
Content
1
Highlights
2
Business
segments
5
2025 financial
targets
6
Appendix
3 | DSV Panalpina – Full-year 2020 results
3
Financial
review
4
Outlook 2021
Strategy execution
20% EPS growth in 2020 and 15% CAGR 2011-2020
•
•
•
26.5
Flexible and scalable business model
Performance driven organisation
Strong M&A track record
Graph illustrates diluted adjusted earnings per share of DKK 1
10.1
10.5
2013
2014
22.1
2018
2019
18.4
12.9
9.5
22.1
13.4
7.8
2011
2012
2015
2016
CAGR +15%
4 | DSV Panalpina – Full-year 2020 results
2017
2020
Highlights 2020
•
•
•
•
We delivered on our financial guidance for 2020.
A successful Panalpina integration is now behind us.
Strong cash flow generation and DKK 2 billion increase of current share buyback programme.
2021 EBIT guidance of DKK 10,500 - 11,500 million and new, ambitious 2025 financial targets.
Gross profit (DKKm)
+6.6%*
7,084
7,212
EBIT before special items (DKKm)
+23.5%*
+54.6%*
28,534
Q4-20
23,754
FY-19
*) Growth rates are in constant currencies. Full-year growth includes M&A impact.
5 | DSV Panalpina – Full-year 2020 results
FY-20
9,520
2,616
6,654
1,784
Q4-19
+47.3%*
Q4-19
Q4-20
FY-19
FY-20
Air & Sea Q4 2020
(DKKm)
Q4 2020
Q4 2019
Growth*
FY 2020
FY 2019
Growth*
Gross profit
1,539
1,809
(10.8%)
6,634
5,923
15.1%
Gross profit
2,529
2,312
16.4%
10,275
6,594
61.9%
Total gross profit
4,068
4,121
4.4%
16,909
12,517
39.7%
EBIT
1,790
1,195
59.0%
7,026
4,506
61.0%
*) Growth rates are in constant currencies. Full-year growth includes M&A impact.
Conversion ratio
45.3%
46.3%
Q4-19
44.0%
11.0%
29.2%
6.6%
Q1-20
Q2-20
6 | DSV Panalpina – Full-year 2020 results
Q3-20
•
59% EBIT growth driven by
Panalpina integration, synergies
and cost management.
•
Conversion ratio at all time high
41.6% for full-year 2020.
•
COVID-19 impacted activity
during 2020. Several of the
division’s key trade lanes and
industries have only partly
recovered from the crisis.
•
Negative currency impact from
USD in the second half of 2020.
Operating margin
11.1%
9.0%
29.0%
Management commentary
Q4-20
Q4-19
6.8%
Q1-20
Q2-20
Q3-20
Q4-20
Air freight Q4 2020
Tonnes, '000
Gross profit/tonne, DKK
Management commentary
-5.5% FX translation impact
10,489
600
8,589
500
5,230
•
DSV volumes were impacted by
discontinued Panalpina activities and
COVID-19.
•
On a like-for-like basis, volumes
declined by 20% in Q4-20**.
•
The market recovery (volumes) was
driven by APAC exports. Europe and
US exports remain subdued.
•
Yields in Q4-20 were up year-onyear, driven by change in mix.
•
Yields in Q2-20 and partly Q3-20
were extraordinarily high.
7,786
5,981
400
300
200
442
360
287
300
325
100
0
Q4-19
Q1-20
Q2-20
Q3-20
Q4-20
DSV (including M&A)
152%
112%
69%
4%
(26%)*
Market estimate
(4%)
(8-10%)
(25-30%)
(14-17%)
(8-10%)
Volume growth air
*) Q4 2020 is the first quarter with full impact of the Panalpina acquisition on comparative figures.
7 | DSV Panalpina – Full-year 2020 results
**) adjusted for disposal of Airflo
Sea freight Q4 2020
TEUs, '000
Gross profit/TEU, DKK
Management commentary
-5.5% FX translation impact
3,218
2,845
2,804
576
512
568
549
0
Q4-19
Q1-20
Q2-20
Q3-20
Q4-20
DSV (including M&A)
78%
60%
31%
9%
(14%)*
Market estimate
2%
(5-7%)
(15-20%)
(0-3%)
3-5%
Volume growth sea
*) Q4 2020 is the first quarter with full impact of the Panalpina acquisition on comparative figures.
8 | DSV Panalpina – Full-year 2020 results
Volumes impacted by discontinued
Panalpina activities and COVID-19.
•
Market improvement in H2-20 was
mainly driven by the Trans-Pacific
trade lane.
•
Tight capacity and record-high freight
rates led to temporary yield pressure
in Q4-20.
•
Yields in DKK were impacted by
weaker USD.
3,036
2,991
636
•
Road Q4 2020
(DKKm)
Q4 2020
Q4 2019
Growth*
FY 2020
FY 2019
Growth*
Revenue
7,966
7,988
1.7%
30,395
31,621
(2.6%)
Gross profit
1,587
1,532
5.6%
6,138
6,156
1.0%
420
272
57.9%
1,390
1,251
12.3%
EBIT
Management commentary
•
EBIT growth driven by solid
gross profit growth and cost
discipline.
•
Market activity in Q4-20 was
close to 2019 levels, but with
differences between regions
and markets.
•
Domestic distribution activity
was strong, whereas
international transports have not
fully recovered.
•
Handling Brexit is challenging,
but, so far, we have been able
to keep supply chains flowing.
*) Growth rates are in constant currencies. Full-year growth includes M&A impact.
Gross margin
Conversion ratio
21.1%
Operating margin
28.3%
6.0%
20.5%
19.9%
19.2%
5.3%
26.5%
3.8%
19.4%
3.4% 3.3%
17.8%
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
9 | DSV Panalpina – Full-year 2020 results
18.4%
16.9%
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Solutions Q4 2020
(DKKm)
Q4 2020
Q4 2019
Growth*
FY 2020
FY 2019
Growth*
Revenue
4,523
4,729
0.2%
14,608
14,390
4.5%
Gross profit
1,529
1,401
14.4%
5,369
4,969
11.5%
456
340
40.7%
1,161
1,013
18.8%
EBIT
Management commentary
•
EBIT growth driven by solid
gross profit growth and cost
discipline.
•
Panalpina activities were
gradually optimised during
2020.
•
Gross margin was impacted by
high activity in e-commerce in
Q4-20. Activity with several
industrial customers remains
below 2019 levels.
•
Continuous focus on
consolidation of physical
infrastructure and automation.
*) Growth rates are in constant currencies. Full-year growth includes M&A impact.
Gross margin
Conversion ratio
Operating margin
29.8%
39.0% 38.8%
24.3%
36.5%
33.8%
29.6%
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
10 | DSV Panalpina – Full-year 2020 results
10.1%
23.8%
18.4%
9.2%
7.2%
7.2%
12.7%
4.6%
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
Q4-19 Q1-20 Q2-20 Q3-20 Q4-20
P&L 2020
(DKKm)
Q4 2020
Q4 2019
Growth*
FY 2020
FY 2019
Growth*
Headlines
Revenue
Management commentary
31,716
30,122
10.5%
115,932
94,701
26.0%
Gross profit
7,212
7,084
6.6%
28,534
23,754
23.5%
EBIT before special items
2,616
1,784
54.6%
9,520
6,654
47.3%
Profit for the period
1,200
445
4,258
4,596
5,300
Special items, costs
685
Financial items, FX adjustments
Financial items, other
•
Strong organic growth in gross
profit for the quarter.
3,706
•
Improved conversion ratio, driven
by synergies and COVID-19 cost
savings.
19,014
17,100
•
609
2,164
800
Special items include small M&A
transactions in Q4-20.
258
249
1,055
188
174
174
674
670
•
Negative impact from weaker USD
in H2-20.
•
Financial items impacted by noncash FX adjustments on intra-group
loans.
P&L items
Cost base (staff, other ext., depreciations)
KPIs
Gross margin (%)
22.7
23.5
24.6
25.1
Operating margin (%)
8.2
5.9
8.2
7.0
Conversion ratio (%)
36.3
25.2
33.4
28.0
Effective tax rate (%)
19.9
40.8
24.3
25.8
56,621
61,216
Employees
*) Growth rates are in constant currencies. Full-year growth includes M&A impact.
11 | DSV Panalpina – Full-year 2020 results
Signing off on synergies and cost savings
Business case achieved faster than expected
Management commentary
Expected P&L impact of synergies and cost savings (DKKm)
1,200
(prev. 1,300)
3,700
• Total synergies and cost savings of DKK 3,700 million will
have full-year impact in 2021.
• Panalpina integration and COVID-19 cost savings have been
realised faster than expected
• DKK 2,400 million were achieved in 2020
• The remaining DKK 1,200 million will have impact in
2021. Estimated split on divisions in 2021:
2,400
(prev. 2,300)
• Air & Sea: DKK 900 million
• Road: DKK 150 million
• Solutions: DKK 150 million
100
2019
2020
12 | DSV Panalpina – Full-year 2020 results
2021
Total
Cash flow 2020
Strong cash conversion
(DKKm)
2020
2019
EBITDA before special items
Change in working capital
Tax, interest, change in provisions, etc.
Special items
Cash flow from operating activities
Cash flow from investing activities
Free cash flow
13,559
209
(1,548)
(1,944)
10,276
(556)
9,720
10,292
(1,165)
(1,956)
(292)
6,879
1,371
8,250
Statement of adjusted free cash flow
Free cash flow
Net acquisition of subsidiaries and activities
Special items (restructuring costs)
Repayment of lease liabilities (IFRS 16 impact reversed)
Adjusted free cash flow
9,720
140
1,944
(3,058)
8,746
8,250
(2,101)
292
(2,763)
3,678
KPIs
Net working capital (NWC)
NWC in % of revenue
Net interest-bearing debt (NIBD)
Gearing ratio (NIBD/EBITDA before special items)
ROIC before tax
ROIC before tax (excl. goodwill and customer relationships)
2,701
2.3%
16,970
1.3
14.3%
56.0%
3,125
3.3%
18,355
1.8
13.4%
40.9%
13 | DSV Panalpina – Full-year 2020 results
Management commentary
•
Significant growth in adjusted free cash flow,
reflecting the improved EBITDA before
special items.
•
Net working capital at satisfactory level by
the end of 2020.
•
Financial gearing ratio at 1.3x.
•
Gearing ratio target unchanged: below 2.0x
EBITDA.
•
On 2 February 2021 Moody’s assigned an
A3 long-term issuer credit rating with a stable
outlook to DSV.
Allocation to shareholders
DKK 2 billion increase of current share buyback programme
(DKKm)
8,000
Management commentary
Share buyback
Dividend
Gearing ratio (Rhs)
2.5x
7,000
• We increase current programme by DKK 2 billion. The
maximum amount is now DKK 8 billion.
6,000
6,000
2.0x
5,031
5,000
4,000
4,888
• The programme runs until 30 April 2021. As per 9 February
2021, shares for an aggregate purchase price of DKK 4,083
million had been bought back under the programme.
1.5x
4,161
3,000
1.0x
• In 2020, 6.2 million shares were bought back – at an average
price of DKK 818.5 per share. Buybacks were paused from
March-October 2020.
2,000
0.5x
1,000
0
380
423
588
2018
2019
2020
14 | DSV Panalpina – Full-year 2020 results
920
0.0x
Jan-Apr 2021
announced
• Proposed dividend for 2020: DKK 4.00 per share (2019: DKK
2.50). The proposed dividend for 2020 is equivalent to approx.
15% of adjusted earnings.
Outlook 2021
(DKKm)
EBIT before special items
Effective tax rate
Main assumptions
Actual 2020
Outlook 2021
9,520
10,500-11,500
24.3%
23.0%
Main assumptions
•
Continued recovery of the global economy after the COVID-19 crisis.
•
Global economic growth around 5% in 2021, with lower growth in Europe and US and higher growth in emerging economies.
•
Growth rates in the transport markets in line with the underlying economic growth.
•
Our ambition is to gain market share in all three divisions.
•
Remaining full-year impact of integration synergies and cost savings of approx. DKK 1,200 million in 2021.
•
Currency exchange rates will remain at the current level.
15 | DSV Panalpina – Full-year 2020 results
2025 financial targets
Aiming for 40% conversion ratio for the Group
FY 2020
actual
H2 2020
actual
DSV Panalpina Group
Conversion ratio
ROIC (before tax)
33.4%
14.3%
36.9%
14.3%
>40.0%
>20.0%
Divisional conversion ratios
Air & Sea
41.6%
45.2%
>47.5%
Road
22.6%
27.4%
>30.0%
Solutions
21.6%
27.0%
>30.0%
Excluding FY impact
of DKK 1.2 billion
synergies
Ratios in H2 are
seasonally stronger
than H1
Conversion ratio: EBIT before special items in % of gross profit.
16 | DSV Panalpina – Full-year 2020 results
Assumptions
2025 targets
•
Stable global economic development with
annual GDP growth around 3%.
•
Transport market growth in line with GDP.
•
We expect to gain market share in all divisions.
•
Targets are based on organic growth, excluding
the potential impact from large acquisitions.
•
CAPEX around 0.75% of revenue.
•
NWC between 2-3% of net revenue, measured
at year end.
•
Effective tax rate of approx. 23%.
•
Gearing ratio target: NIBD below 2.0x EBITDA
before special items.
Strategic focus areas
Air & Sea
Road
Solutions
1 Market share gains. We aim to capitalise on 1 Further digital customer interaction –
1 Consolidation of physical infrastructure –
the new, strong market position after the
acquisition of Panalpina.
myDSV, real-time information, purchase order
management, Quote Tool.
move towards multi-client facilities.
2 Scalability of IT infrastructure and further
2 Implementation of Road Way Forward
2 Consolidation of digital infrastructure –
standardisation of workflows.
project.
one Warehouse Management System.
3 Further digital customer interaction –
3 Development of network and services.
3 Automation of warehousing operation and
myDSV, real-time information, purchase order
management.
17 | DSV Panalpina – Full-year 2020 results
development of e-commerce capabilities.
Appendix
18 | DSV Panalpina – Full-year 2020 results
DSV Panalpina
Global transport and logistics
Global operations
One company –
three divisions
DSV Panalpina
Hedehusene, Denmark
Headquarters
+56,000
Air & Sea
Employees
A global network
Nasdaq Copenhagen
No majority shareholder – 100% free float
1,300
Offices and
logistics facilities
+80
Countries
Road
Overland transport in
Europe, North America
and South Africa
Solutions
Contract logistics
services worldwide
A3
Credit rating (Moody's)
Committed to being responsible
Guided by
UN Global Compact & SDG
(Sustainable Development Goals)
19 | DSV Panalpina – Full-year 2020 results
Working together to support the entire supply chain
+56,000 people in more than 80 countries at your service
4PL services
Third-party logistics services (3PL)
Air & Sea
Road
• Access to all markets through our
global network
• Strategic partnerships with leading
carriers and airlines
• FCL/LCL and project transports
• Air Charter Network
• Road freight services in Europe, North
America and South Africa
• Groupage and LTL/FTL services
• Specialised services within
temperature-controlled transports,
hazardous cargo etc.
Solutions
•
•
•
•
Contract logistics services worldwide
Solutions for e-commerce
Automated warehouse solutions
Pharma warehouses
Lead Logistics
• Enabling intelligent supply chains
• Planning and control
• Procurement and provider
management
• Execution management and support
• Freight audit and pay
DSV XPress • DSV Purchase Order Management • DSV Supply Chain Innovation • DSV Insurance
20 | DSV Panalpina – Full-year 2020 results
Our strategic focus areas
We want to be a leading freight forwarder targeting extensive growth
Customers
We offer our customers global and competitive transport and logistics services of a
consistent, high quality.
Growth
We actively pursue profitable growth balanced between a solid above market organic
growth and an active acquisition approach.
Operational excellence
Operational excellence in our business processes is crucial in order to operate with
the highest productivity, enabling us to be competitive and deliver timely and highquality services to our customers.
People
We strive to attract, motivate and retain talented people by offering responsibility,
empowerment and growth opportunities. We treasure sound business acumen and
work together as a global family to drive the business forward.
21 | DSV Panalpina – Full-year 2020 results
Focus on customer needs
Industry-specific expertise and solutions
Automotive
Industrial
Retail & Fashion
Healthcare
Technology
Renewable Energy
22 | DSV Panalpina – Full-year 2020 results
Creating value in the supply chain
From A to B and much more
Freight forwarding services
Shipment booking — Pick-up — Warehouse — Documentation
& customs clearance — Cargo consolidation — Purchase order
management — Cross-dock terminal — Insurance
Logistics and distribution
Transport
Subcontracted
From shipper
Warehousing — Picking/packing — Cross-dock terminal —
Deconsolidation — Labelling, configuration, testing — Distribution
Documentation & customs clearance — E-commerce fulfilment — Carbon
emission reports — Supply chain innovation
To consignee
Our key resources
People — IT systems — Industry know-how — Standardised global workflows — Carrier relations — Global network with local presence
23 | DSV Panalpina – Full-year 2020 results
Competitive landscape
Third-party logistics providers by 2019 revenue in USD billion
1
DHL Logistics (DE)
2
Kuehne + Nagel (CH)
3
DB Schenker (DE)
18.3
4
Nippon Express (JP)
18.3
5
DSV Panalpina (DK)
18.0
6
C. H. Robinson (US)
7
XPO Logistics (US)
8
UPS (US)
9
J. B. Hunt (US)
10
Expeditors (US)
11
Dachser (DE)
7.3
12
CEVA Logistics (CH)
7.1
13
Bolloré (FR)
14
Sinotrans (CN)
15
SNCF Geodis (FR)
5.7
16
Gefco (FR)
5.6
17
Kintetsu (JP)
18
Rhenus & Co. (DE)
19
NYK Group (JP)
20
Samsung SDS (KR)
Source: Journal of Commerce, DSV estimates
24 | DSV Panalpina – Full-year 2020 results
32.0
25.5
14.3
11.3
30 - 40%
9.3
8.8
The estimated market share of
the top 20 third-party logistics
providers
8.2
6.7
6.3
5.1
4.6
4.4
4.2
3 - 4%
The estimated market share
of DSV Panalpina
Market position
One of the industry leaders
rd
3
3rd
Air freight
Road freight (Europe)
rd
3
th
10
Sea freight
25 | DSV Panalpina – Full-year 2020 results
Logistics solutions
12%
From local haulier to global player
15%
A global network created through organic growth and M&A
73%
Breakdown of EBIT by division
Air & Sea
Road
2020
Solutions
3%
Breakdown of EBIT by geography
38%
EMEA
Americas
59%
APAC
2016
2008
100%
2006
2000
1976
10 independent
hauliers established
DSV
1997
2,694 DKKm
19,478 DKKm
31,972 DKKm
37,435 DKKm
67,747 DKKm
115,932 DKKm
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
98 DKKm
854 DKKm
1,504 DKKm
1,936 DKKm
3,475 DKKm
9,520 DKKm
EBIT
EBIT
EBIT
EBIT
EBIT
EBIT
DSV acquired Samson
Transport
DSV acquired DFDS
Dan Transport Group
DSV acquired
Frans Maas
DSV acquired ABX
LOGISTICS
DSV acquired UTi
Worldwide
In 2019 DSV acquired
Panalpina
26 | DSV Panalpina – Full-year 2020 results
Divisional and geographical exposure FY 2020
Gross profit by division
Gross profit by region
19%
19%
Solutions
APAC
59%
22%
Air & Sea
EBIT before special items by division
21%
EBIT before special items by region
12%
30%
Solutions
Road
EMEA
Americas
Road
15%
APAC
73%
47%
EMEA
Air & Sea
23%
Americas
27 | DSV Panalpina – Full-year 2020 results
60%
Trade lane statistics
Geographical volume exposure
Air freight
16%
15%
EMEA - APAC
6%
8%
Americas - APAC
8%
Americas - EMEA
7%
Intra-APAC
5%
Intra-EMEA
5%
Intra-Americas
APAC - EMEA
12%
14%
APAC - Americas
13%
EMEA - Americas
11%
3%
Intra-EMEA
9%
Intra-Americas
1%
0%
6%
5%
Misc.
11%
4%
4%
10%
Intra-APAC
9%
30%
14%
14%
Americas - EMEA
21%
7%
15%
Americas - APAC
APAC - Americas
EMEA - Americas
10%
8%
EMEA - APAC
18%
16%
APAC - EMEA
Misc.
Sea freight
28%
13%
14%
4%
4%
2%
0%
DSV Panalpina geographical exposure (Jan-Dec 2020)
DSV Panalpina geographical exposure (Jan-Dec 2020)
Global market share geographical exposure (Jan-Nov 2020)
Global market share geographical exposure (Jan-Dec 2020)
Source: Seabury
28 | DSV Panalpina – Full-year 2020 results
Source: Container Trade Statistics
Historical transport market growth
CAGR in %
1980-2008 2000-2015
2015
2016
2017
2018
2019
2020e
2021e
2022e
Global real GDP
2.3%
4.6%
3.2%
3.1%
3.5%
3.7%
3.0%
-3.3%
6.4%
4.4%
Global trade
4.4%
4.3%
2.8%
2.4%
4.2%
4.2%
3.4%
-9.6%
8.1%
6.3%
1.9x
0.9x
0.9x
0.8x
1.2x
1.1x
1.1x
2.9x
1.3x
1.4x
9.0%
7.0%
1.2%
3.2%
4.0%
4.4%
3.2%
-4.8%
5.0%
4.4%
3.9x
1.4x
0.4x
1.0x
1.1x
1.2x
1.1x
1.5x
0.8x
1.0x
4.9%
3.7%
1.4%
4.0%
10.3%
4.1%
0.0%
-14.0%
7.0%
5.0%
2.1x
0.8x
0.4x
1.3x
2.9x
1.1x
0.0x
4.2x
1.1x
1.1x
multiplier ^ (x)
Container volumes*
multiplier ^ (x)
Air freight volumes*
multiplier ^ (x)
* Containers in TEU, air freight in tonnes
Source: DSV estimates, Morgan Stanley Research
29 | DSV Panalpina – Full-year 2020 results
Corporate responsibility
Focus areas
Business ethics
People
Environment
Community
engagement
Responsible
procurement
We do business with
integrity, respecting
different cultures and the
dignity and rights of
individuals in all countries.
We provide safe and
healthy workplaces, and we
strive to attract, motivate
and retain talented people
by offering responsibility,
empowerment and growth
opportunities.
We have a responsibility
to drive our own operations
and the industry towards
minimising the environmental
impact of transport and
logistics services.
We engage with and
support communities in
which we operate, and we
use our expertise to
support people in need.
We ensure our suppliers meet
our high standards, service
quality and price requirements
and demonstrate an
understanding of our
Corporate Responsibility
objectives.
UN Global Compact – UN Sustainable Development Goals – GRI Certified Responsibility Report
30 | DSV Panalpina – Full-year 2020 results
Science-based targets 2030
We want to reduce our scope 1 and 2 emissions by 40% and scope 3 by 30%
Scopes of emissions
The SBTi framework uses the reporting standards
established by the Greenhouse Gas Protocol, which
divides greenhouse gas emissions into scopes:
Scope 1
Direct emissions,
typically from the burning
of fuels, from owned or
controlled sources,
including our facilities
and company vehicles
Scope 3
Indirect emissions
(not included in scope 2)
that occur in our value
chain, including all our
subcontracted transport.
Scope 2
Indirect emissions
from the generation
of purchased
electricity, steam,
heat or cooling.
• Our targets aim to reduce our CO2 emissions by 2030 from a
2019 baseline year.
• The targets are aligned with the goals of the Paris Agreement
- to limit global warming to well below 2°C above preindustrial levels and to pursue efforts to limit global warming
to 1.5°C.
• DSV Panalpina is committed to the Science-Based Targets
initiative, which has approved our targets for reducing
carbon emissions.
• DSV Panalpina is one of the first global players in our
industry to set science-based targets.
31 | DSV Panalpina – Full-year 2020 results
Solid financial performance over the years
Revenue
120,000
(DKKm)
Gross
profit
(DKKm)
100,000
28,000
24,000
20,000
80,000
16,000
60,000
12,000
40,000
8,000
20,000
4,000
0
0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2011
2020
2012
2013
2014
2016
2017
2018
2019
2020
CAGR*: 12.6%
CAGR*: 11.4%
EBIT before
special items
(DKKm) 10,000
2015
Margins (%)
Conversion ratio
Operating margin (Rhs)
35%
14%
30%
12%
25%
10%
20%
8%
4,000
15%
6%
3,000
10%
4%
5%
2%
9,000
8,000
7,000
6,000
5,000
2,000
1,000
0
0%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
CAGR*: 16.4%
*Average annual growth (CAGR) includes M&A and IFRS 16
32 | DSV Panalpina – Full-year 2020 results
Cash flow and ROIC
Cash conversion ratio* (%)
Operating cash flow (DKKm)
12,000
140%
10,000
120%
8,000
100%
6,000
80%
60%
4,000
40%
2,000
20%
0
0%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Average: 103%
* Cash conversion ratio: (Adjusted free cash flow before net financial items and tax)/EBIT before special items
Invested capital (DKKm)
ROIC before tax (%)
70,000
30%
60,000
25%
50,000
20%
40,000
15%
30,000
10%
20,000
5%
10,000
0%
0
2011
2012
Invested capital
2013
2014
2015
2016
2017
Goodwill and costumer
relations
33 | DSV Panalpina – Full-year 2020 results
2018
2019
2020
Right-of-use assets
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Financial performance per division
Selected KPIs
DSV Panalpina
EBIT DKKm
Conversion ratio (Rhs)
DSV Air & Sea
Operating margin (Rhs)
10,000
40%
9,000
8,000
7,000
Conversion ratio (Rhs)
Operating margin (Rhs)
45%
35%
7,200
40%
30%
6,400
35%
5,600
6,000
25%
5,000
20%
4,000
4,000
15%
3,200
3,000
10%
2,000
30%
4,800
25%
20%
15%
2,400
10%
1,600
1,000
0
2015
DSV Road
EBIT DKKm
8,000
EBIT DKKm
2016
2017
Gross margin (Rhs)
2018
2019
Conversion ratio (Rhs)
5%
800
0%
0
5%
0%
2015
2020
1,600
Operating margin (Rhs)
40%
1,400
35%
1,200
30%
DSV Solutions
2016
EBIT DKKm
2017
2018
Conversion ratio (Rhs)
2019
2020
Operating margin (Rhs)
1,400
25%
1,200
20%
1,000
1,000
25%
800
20%
600
15%
800
15%
600
10%
400
10%
400
200
5%
200
0%
0
5%
0
2015
2016
34 | DSV Panalpina – Full-year 2020 results
2017
2018
2019
2020
0%
2015
2016
2017
2018
2019
2020
Capital structure and capital allocation
(DKKm)
Management commentary
6,000
Dividend
Share buyback
5,000
4,000
Financial gearing
target
Net interest-bearing debt below 2.0x EBITDA before
special items.
Free cash flow
priorities
1. Repayment of debt (if above target gearing ratio).
2. Value creating acquisitions or further development of
the existing business.
3. Allocation to shareholders via share buyback and
dividend.
3,000
Dividend policy
2,000
1,000
1,419
0
1,559
4,161
4,888
5,031
283
327
342
380
423
588
2015
2016
2017
2018
2019
2020
35 | DSV Panalpina – Full-year 2020 results
Capital
expenditures
Proposed dividend per share for 2020: DKK 4.00 per
share (2019: DKK 2.50).
DSV Panalpina aims to ensure an annual dividend payout ratio of approximately 15% of net profit.
Normalised CAPEX around 0.75% of revenue.
Quarterly P&L details
DSV Panalpina Group
(DKKm)
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
FY 2020
18,380
14,260
4,120
758
2,024
1,338
-
19,491
15,041
4,450
733
2,086
1,631
-
20,237
15,765
4,472
769
2,004
1,699
-
20,945
16,498
4,447
776
2,127
1,544
-
79,053
61,564
17,489
3,036
8,241
6,212
-
19,979
14,865
5,114
656
2,195
2,263
632
20,079
14,794
5,285
642
2,202
2,441
626
24,521
18,250
6,271
817
2,727
2,727
680
30,122
23,038
7,084
1,018
3,205
2,861
796
94,701
70,947
23,754
3,133
10,329
10,292
2,734
27,309
20,625
6,684
867
3,213
2,604
798
28,782
21,396
7,386
795
2,925
3,666
777
28,125
20,873
7,252
831
2,708
3,713
723
31,716
24,504
7,212
798
2,838
3,576
744
115,932
87,398
28,534
3,291
11,684
13,559
3,198
182
1,156
155
1,001
182
1,449
(120)
1,569
192
1,507
94
1,413
206
1,338
120
1,218
762
5,450
249
5,201
177
1,454
22
89
106
1,281
184
1,631
19
25
91
83
1,463
262
1,785
172
85
96
102
1,500
281
1,784
609
(1)
107
315
752
904
6,654
800
131
383
606
4,996
240
1,566
511
65
114
548
458
276
2,613
515
91
95
218
1,876
265
2,725
453
58
109
427
1,794
216
2,616
685
40
116
356
1,499
841
9,520
2,164
254
434
1,549
5,627
Tax on profit for the period
Profit for the period
232
769
382
1,187
309
1,104
290
928
1,213
3,988
318
963
314
1,149
351
1,149
307
445
1,290
3,706
127
331
486
1,390
457
1,337
299
1,200
1,369
4,258
Gross margin, %
Operating margin, %
Conversion ratio, %
Effective tax rate, %
Blue-collar costs (included in direct
costs)
22.4
6.3
28.1
23.2
22.8
7.4
32.6
24.3
22.1
7.4
33.7
21.9
21.2
6.4
30.1
23.8
22.1
6.9
31.2
23.3
25.6
7.3
28.4
24.8
26.3
8.1
30.9
21.5
25.6
7.3
28.5
23.4
23.5
5.9
25.2
40.8
25.1
7.0
28.0
25.8
24.5
5.7
23.4
27.7
25.7
9.1
35.4
25.9
25.8
9.7
37.6
25.5
22.7
8.2
36.3
19.9
24.6
8.2
33.4
24.3
1,155
1,184
1,181
1,271
4,791
1,218
1,231
1,313
1,537
5,299
1,411
1,132
1,282
1,449
5,274
46,767
47,144
48,182
47,394
47,394
47,281
47,552
61,799
61,216
61,216
58,788
53,399
56,090
56,621
56,621
Revenue
Direct costs
Gross profit
Other external expenses
Staff costs
EBITDA before special items
Depreciation of right-of-use assets
Amortisation and depreciation of
owned assets
EBIT before special items
Special Items, net costs
Financial income
Financial expenses - lease liabilities
Financial expenses
Profit before tax
Number of full-time employees
36 | DSV Panalpina – Full-year 2020 results
Quarterly P&L details
Air & Sea
(DKKm)
Divisional revenue
Direct costs
Gross profit
Other external expenses
Staff costs
EBITDA before special items
Depreciation of right-of-use assets
Amortisation and depreciation of
owned assets
EBIT before special items
Gross margin, %
Operating margin, %
Conversion ratio, %
Number of full-time employees
Air
Revenue, DKKm
Gross profit, DKKm
Air freight, tonnes
GP/tonne, DKK
Sea
Revenue, DKKm
Gross profit, DKKm
TEUs
GP/TEU, DKK
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
FY 2020
8,414
6,269
2,145
457
870
818
-
9,095
6,708
2,387
485
893
1,009
-
9,625
7,266
2,359
439
886
1,034
-
9,838
7,536
2,302
473
911
918
-
36,972
27,779
9,193
1,854
3,560
3,779
-
9,411
6,987
2,424
386
943
1,095
82
9,682
7,153
2,529
424
935
1,170
61
13,981
10,538
3,443
594
1,442
1,407
127
18,077
13,956
4,121
863
1,773
1,485
214
51,151
38,634
12,517
2,267
5,093
5,157
484
16,674
12,799
3,875
797
1,679
1,399
211
19,144
14,481
4,663
736
1,530
2,397
190
17,910
13,607
4,303
692
1,394
2,217
151
19,961
15,893
4,068
645
1,445
1,978
127
73,689
56,780
16,909
2,870
6,048
7,991
679
23
795
21
988
21
1,013
21
897
86
3,693
15
998
16
1,093
60
1,220
76
1,195
167
4,506
58
1,130
95
2,112
72
1,994
61
1,790
286
7,026
25.5
9.4
37.1
26.2
10.9
41.4
24.5
10.5
42.9
23.4
9.1
39.0
24.9
10.0
40.2
25.8
10.6
41.2
26.1
11.3
43.2
24.6
8.7
35.4
22.8
6.6
29.0
24.5
8.8
36.0
23.2
6.8
29.2
24.4
11.0
45.3
24.0
11.1
46.3
20,4
9.0
44.0
22.9
9.5
41.6
11,996
12,065
12,090
12,130
12,130
12,072
12,103
22,824
21,516
21,516
20,610
18,723
18,067
18,008
18,008
4,206
1,065
4,610
1,186
4,894
1,194
5,182
1,182
18,892
4,627
4,598
1,230
4,564
1,224
7,352
1,827
10,620
2,313
27,134
6,594
9,530
2,153
12,057
3,015
10,296
2,578
12,873
2,529
44,756
10,275
162,689
6,546
173,578
6,833
177,155
6,736
175,623
6,730
689,045
6,715
170,103
7,231
170,301
7,187
288,793
6,326
442,069 1,071,266
5,226
6,155
359,975
5,981
287,452
10,489
300,147
8,589
4,208
1,080
4,485
1,201
4,731
1,165
4,656
1,120
18,080
4,566
4,813
1,194
5,118
1,305
6,629
1,616
24,017
5,923
7,144
1,722
7,087
1,648
7,614
1,725
346,788
3,114
369,211
3,253
369,143
3,156
357,206 1,442,348
3,135
3,166
359,925
3,317
391,333
3,335
520,048
3,107
635,820 1,907,126
2,846
3,106
575,814
2,991
512,138
3,218
568,130
3,036
37 | DSV Panalpina – Full-year 2020 results
7,457
1,808
324,831 1,272,405
7,786
8,075
7,088
1,539
28,933
6,634
548,820 2,204,902
2,804
3,009
Quarterly P&L details
Road
(DKKm)
Divisional revenue
Direct costs
Gross profit
Other external expenses
Staff costs
EBITDA before special items
Depreciation of right-of-use assets
Amortisation and depreciation of
owned assets
EBIT before special items
Gross margin, %
Operating margin, %
Conversion ratio, %
Number of full-time employees
Q1 2018
Q2 2018
Q3 2018
Q4 2018
FY 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
FY 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
FY 2020
7,676
6,370
1,306
347
686
273
-
7,862
6,544
1,318
275
687
356
-
7,812
6,439
1,373
357
639
377
-
7,893
6,582
1,311
347
694
270
-
31,243
25,935
5,308
1,326
2,706
1,276
-
8,102
6,541
1,561
300
719
542
218
7,833
6,298
1,535
232
725
578
213
7,698
6,170
1,528
261
679
588
212
7,988
6,456
1,532
267
741
524
219
31,621
25,465
6,156
1,060
2,864
2,232
862
7,921
6,386
1,535
287
757
491
206
6,987
5,556
1,431
242
686
503
209
7,521
5,936
1,585
251
650
684
211
7,966
6,379
1,587
241
706
640
202
30,395
24,257
6,138
1,021
2,799
2,318
828
32
241
17.0
3.1
18.5
13,047
34
322
16.8
4.1
24.4
13,160
32
345
17.6
4.4
25.1
13,345
31
239
16.6
3.0
18.2
12,850
129
1,147
17.0
3.7
21.6
12,850
26
298
19.3
3.7
19.1
13,181
27
338
19.6
4.3
22.0
13,134
33
343
19.8
4.5
22.4
13,493
33
272
19.2
3.4
17.8
13,644
119
1,251
19.5
4.0
20.3
13,644
26
259
19.4
3.3
16.9
15,200
31
263
20.5
3.8
18.4
13,408
25
448
21.1
6.0
28.3
14,090
18
420
19.9
5.3
26.5
14,003
100
1,390
20.2
4.6
22.6
14,003
2,848
2,149
699
235
278
186
-
3,111
2,370
741
226
286
229
-
3,417
2,659
758
235
283
240
-
3,853
3,016
837
259
294
284
-
13,229
10,194
3,035
955
1,141
939
-
3,049
1,923
1,126
264
306
556
314
3,147
1,961
1,186
254
304
628
335
3,465
2,209
1,256
278
341
637
329
4,729
3,328
1,401
292
355
754
348
14,390
9,421
4,969
1,088
1,306
2,575
1,326
3,441
2,185
1,256
289
385
582
364
3,256
1,985
1,271
244
365
662
361
3,388
2,075
1,313
255
344
714
342
4,523
2,994
1,529
301
355
873
355
14,608
9,239
5,369
1,089
1,449
2,831
1,422
59
127
24.5
4.5
18.2
19,534
54
175
23.8
5.6
23.6
19,584
56
184
22.2
5.4
24.3
20,384
61
223
21.7
5.8
26.6
20,025
230
709
22.9
5.4
23.4
20,025
49
193
36.9
6.3
17.1
19,862
52
241
37.7
7.7
20.3
20,146
69
239
36.2
6.9
19.0
22,521
66
340
29.6
7.2
24.3
22,777
236
1,013
34.5
7.0
20.4
22,777
59
159
36.5
4.6
12.7
20,079
67
234
39.0
7.2
18.4
18,428
60
312
38.8
9.2
23.8
21,039
62
456
33.8
10.1
29.8
21,478
248
1,161
36.8
7.9
21.6
21,478
Solutions
Divisional revenue
Direct costs
Gross profit
Other external expenses
Staff costs
EBITDA before special items
Depreciation of right-of-use assets
Amortisation and depreciation of
owned assets
EBIT before special items
Gross margin, %
Operating margin, %
Conversion ratio, %
Number of full-time employees
38 | DSV Panalpina – Full-year 2020 results
Growth tables Q4 2020 and FY 2020
DSV Panalpina
(DKKm)
Revenue
Gross profit
EBIT before special items
Q4 2019
30,122
7,084
1,784
(DKKm)
Revenue
Gross profit
EBIT before special items
FY 2019
94,701
23,754
6,654
FX translation
adjustments
(1,415)
(321)
(92)
(2,707)
(653)
(192)
Growth*
3,009
449
924
23,938
5,433
3,058
Growth**
10.5%
6.6%
54.6%
Q4 2020
31,716
7,212
2,616
26.0%
23.5%
47.3%
FY 2020
115,932
28,534
9,520
17.3%
4.4%
59.0%
Q4 2020
19,961
4,068
1,790
49.7%
39.7%
61.0%
FY 2020
73,689
16,909
7,026
DSV Air & Sea
(DKKm)
Revenue
Gross profit
EBIT before special items
Q4 2019
18,077
4,121
1,195
(DKKm)
Revenue
Gross profit
EBIT before special items
FY 2019
51,151
12,517
4,506
*Including M&A
**Growth rates are in constant currencies and including M&A impact.
39 | DSV Panalpina – Full-year 2020 results
(1,064)
(223)
(69)
(1,941)
(409)
(142)
2,948
170
664
24,479
4,801
2,662
Growth tables Q4 2020 and FY 2020
DSV Road
(DKKm)
Revenue
Gross profit
EBIT before special items
Q4 2019
7,988
1,532
272
(DKKm)
Revenue
Gross profit
EBIT before special items
FY 2019
31,621
6,156
1,251
FX translation
adjustments
(158)
(29)
(6)
(408)
(79)
(13)
Growth*
136
84
154
(818)
61
152
Growth**
1.7%
5.6%
57.9%
Q4 2020
7,966
1,587
420
(2.6%)
1.0%
12.3%
FY 2020
30,395
6,138
1,390
0.2%
14.4%
40.7%
Q4 2020
4,523
1,529
456
4.5%
11.5%
18.8%
FY 2020
14,608
5,369
1,161
DSV Solutions
(DKKm)
Revenue
Gross profit
EBIT before special items
Q4 2019
4,729
1,401
340
(DKKm)
Revenue
Gross profit
EBIT before special items
FY 2019
14,390
4,969
1,013
*Including M&A
**Growth rates are in constant currencies and including M&A impact.
40 | DSV Panalpina – Full-year 2020 results
(217)
(65)
(16)
(410)
(155)
(36)
11
193
132
628
555
184
Our approach to IT
Strong platforms with ongoing development and investments
Consolidated IT landscape with one
transport/warehouse management system per
division ensuring high data quality and productivity
Our IT systems, infrastructure and back-office
functions are scalable, providing operational
leverage opportunities in all three divisions
41 | DSV Panalpina – Full-year 2020 results
Millions of shipments are booked and
tracked by our customers
myDSV, our online booking platform,
enables our customers to easily book
and track shipments
Strong focus on operational reliability,
data security and safeguarding against
cyber attacks
We work with established technologies
such as robotics and predictive
analytics and keep track of emerging
technologies
Our IT landscape
DSV Enterprise Reference Model
Customer engagement
• Unified entry for customer engagement
GCO
Air & Sea
• Global CRM system
• Electronic data exchange with customers via EDI and API
Road
Solutions
• Global transport
management system
• One primary transport
management system
• Global warehouse
management system
• Off-the-shelf system
• Partly off-the-shelf
system
• Modified off-the-shelf
system
• Off-the-shelf system
Scalable and stable
42 | DSV Panalpina – Full-year 2020 results
• Global ERP system
• Off-the-shelf system
• Global business
intelligence
Operational data store
Global master data management
Global enterprise service bus
Group
System integration platform
IT infrastructure
Digital integration enablement
Secure and compliant
myDSV
Our self-service platform
Online, convenient and fast.
myDSV is more than a booking portal – it also
supports features such as:
43 | DSV Panalpina – Full-year 2020 results
Technology radar
Track
Augmented reality
Warehouse operation – Pick n’
Packing
Quantum
computing
Assess
Blockchain
Digital signature authentication
Test
Customer integrations
Mapping advanced tools for
easy integration to customers
Text analysis
Contextual analysis of
invoice, customs and legal
documents
Adopt
Self driving
vehicles
5G network
Conversational AI
Costumer and internal
operations chatbot
Internet of Things
Tracking shipments
and assets
Advanced Analytics
Churn prediction
ML / AI
ETA prediction and early
Cloud
Multi Cloud enabled warnings on potential
delay, OCR etc.
services and Hybrid
Computing Platform
44 | DSV Panalpina – Full-year 2020 results
Drones (air)
Warehouse inventory
management
Real Time Data
Platform
Digital freight platforms
Customer engagement and
integration
3D printing
Showroom
AI translation
Automatic translation
for support
Customer
integrations
API
Robotic Process Automation
+150 robots for invoice and
customs documents handling
Automated
Guided Vehicle
Warehouse
cleaning
High-speed
database technologies
Real time collection and
distribution of data
Computer Vision
Reading scanned
documents
Investor contact information
Share information
Financial calendar 2021
DSV Panalpina A/S is listed on the Copenhagen stock exchange under the
symbol ‘DSV’.
For further company information, please visit: www.dsv.com
15 Mar. 2021 Annual General Meeting, 2021
27 Apr. 2021 Interim Financial Report, First Quarter 2021
26 May 2021 Capital Markets Day 2021
29 Jul. 2021 Interim Financial Report, Second Quarter 2021
26 Oct. 2021 Interim Financial Report, Third Quarter 2021
Investor Relations contacts
DSV Panalpina A/S
Hovedgaden 630, 2640 Hedehusene, Denmark
investor@dsv.com
Flemming Ole Nielsen
+45 4320 3392
flemming.o.nielsen@dsv.com
Frederikke Anna Linde
+45 4320 3195
frederikke.a.linde@dsv.com
Mads Kristian Hofmeister
+45 4320 3388
madskristian.hofmeister@dsv.com
45 | DSV Panalpina – Full-year 2020 results