DSV Solutions Division Anton van Beers, Managing Director. DSV Capital Markets Day, 11 May 2010

Transcription

1 DSV Solutions Division Anton van Beers, Managing Director DSV Capital Markets Day, 11 May 2010

2 General Facts One of the leading suppliers of logistics services in Europe 5,497 employees Operations in 17 countries Wide-ranging network throughout Europe 2,200,000 m² of warehousing Turnover ,788 million DKK EBITA million DKK (Annual report 2009) 2 DSV Capital Markets Day, 11 May 2010 DSV Solutions

3 DSV Solutions Strategic Approach Inbound Logistics Retail Warehouse Management Automotive Value-Added Logistics Empowered People Process Excellence Integrated Global Network Technology Leadership Industry Concepts High-Tech Distribution Management Healthcare Supporting Activities Industrial 3 DSV Capital Markets Day, 11 May 2010 DSV Solutions

4 DSV Solutions High-Level Processes Primary Activities Inbound Logistics Inbound freight management Purchase order control De-consolidation Warehouse Management Inventory management Back-order management Order fulfilment Value-Added Logistics Kitting / assembly / configuration Quality management and control Sequencing / line feeding Reverse logistics Repair-return management Distribution Management Outbound freight management Carrier invoice management 4 DSV Capital Markets Day, 11 May 2010 DSV Solutions

5 DSV Solutions High-Level Processes Supporting Activities Inventory visibility Order visibility WMS / FMS / Customs / ERP interfacing CargoWRITE IT Systems Clearance and exporting documentation Bonded storage Customs consulting VAT registration Customized performance notifications Account management Business Process Control Customs & Fiscal Representation Performance Reporting & After Sales Service 5 DSV Capital Markets Day, 11 May 2010 DSV Solutions

6 DSV Solutions Sector Overview 6 DSV Capital Markets Day, 11 May 2010 DSV Solutions

7 DSV Solutions - Turnover Development CARG Below chart illustrates the development in consolidated Turnover and CAGR for all countries in the Solutions Division from Turnover in million DKK ,240 5,275 5, , * CAGR: Compound Annual Growth Rate Note: 2006 impact from Solutions activity reported under Road (Frans Maas). 7 DSV Capital Markets Day, 11 May 2010 DSV Solutions

8 DSV Solutions - Gross Profit Development Below chart illustrates the development in consolidated Gross Profit and the Gross Margin for all countries in the Solutions Division from 2002 Q Gross Profit in million DKK Gross Profit Gross Margin 1,561 1,221 1, % 26.7% 27.0% 23.2% 23.1% 21.9% 20.6% 20.9% 18.0% Q % 40% 35% 30% 25% 20% 15% 10% Note: 2006 impact from Solutions activity reported under Road (Frans Maas). 8 DSV Capital Markets Day, 11 May 2010 DSV Solutions

9 DSV Solutions - EBITA Development Below chart illustrates the development in consolidated EBITA, EBITA margin and Gross Profit conversion ratio for all countries in the Solutions Division from 2002 Q EBITA in million DKK EBITA EBITA margin Gross Profit conversion ratio % 0.2% 0.8% Q % 24.1% 15.2% 1.0% 4.1% 3.2% 5.3% 19.6% 17.4% 17.6% 12.6% 5.2% 4.0% 3.4% 5.2% 40% 30% 20% 10% 0% -10% -20% -30% -40% Note: 2006 impact from Solutions activity reported under Road (Frans Maas). 9 DSV Capital Markets Day, 11 May 2010 DSV Solutions

10 DSV Solutions ROIC Development Below chart illustrates the development in ROIC and Invested Capital for all countries in the Solutions Division from Invested Capital in million DKK 3,000 2,500 Invested Capital ROIC including goodwill and customer relationships 2,465 2, % 25.0% 2, % 1,500 1, % 0.8% % 8.9% 16.6% 1, % 8.6% 7.6% % 10.0% 5.0% 0.0% DSV is a high growth company * CAGR=[(Current Value/Base Value)^(1/number of years)]-1 10 DSV Capital Markets Day, 11 May 2010 DSV Solutions

11 Comparison by Country in 2005, 2007 and Pre Frans Maas 2007 Pre ABX 2009 Now Turnover Nordic 100% Benelux 37% Other 10% Nordic 25% DE 28% Other 17% Benelux 29% Nordic 16% IT 16% DE 22% Gross Profit Other 10% Nordic 17% DE 13% Other 17% Nordic 15% DE 11% Nordic 100% Benelux 59% Benelux 34% IT 22% Other 0% EBITA Nordic 12% IT 22% Nordic 32% Nordic 100% Benelux 88% Benelux 46% Other 0% 11 DSV Capital Markets Day, 11 May 2010 DSV Solutions

12 DSV Solutions European Sites Overview Country Sites Space Austria 1 4,000m² Baltics 3 18,000m² Belgium 8 239,000m² Bulgaria 1 14,000m² Croatia 3 3,000m² Czech Republic 6 15,000m² Denmark 6 95,000m² Finland 9 48,000m² France 5 150,000m² Germany 9 300,000m² Hungary 3 15,000m² Republic of Ireland 7 73,000m² Italy ,000m² Netherlands 9 390,000m² Norway 2 40,000m² Poland 7 85,500m² Portugal 1 12,000m² Romania 3 45,500m² Russia 3 77,500m² Slovakia 4 12,000m² Spain 3 100,000m² Sweden 4 180,000m² Turkey 2 22,000m² Ukraine 5 19,600m² United Kingdom 8 73,000m² DSV Solutions DSV Partners 12 DSV Capital Markets Day, 11 May 2010 DSV Solutions

13 Competitor Revenue Comparisons Revenue Equivalent to DSV Solutions 2009 Solutions Revenue ( bn) DHL 12,5 UPS (2008) 4,3 CEVA Kuehne & Nagel Wincanton 2,9 2,8 3,1 Norbert Detressangle (2008) UTI Expeditors Geodis (2008) DSV Panalpina 1,4 1,1 0,8 0,8 0,8 0,6 Source: annual reports DSV Capital Markets Day, 11 May 2010 DSV Solutions

14 DSV Solutions Customer references Retail Automotive High-Tech Healthcare Industrial 14 DSV Capital Markets Day, 11 May 2010 DSV Solutions

15 DSV Solutions Price mechanisms Service / Activity Multicustomer Dedicated Inbound freight Handling-in Storage Handling-out Value Added Services Distribution Impact Rates per activity / storage volume Back-to-back agreement Air - Ocean - Road (box => container) Rate per pallet / box / order line Rate per m³ / m² / pallet / box / bin Rate per pallet / box / order line Rate per activity / man-hours Truck / loading meter / pallet / time transport mode 15 DSV Capital Markets Day, 11 May 2010 DSV Solutions

16 DSV Solutions Price developments WW recession forced many companies to free up working capital Inventory levels risk of price erosion obsolescence have become KPI s Lower freight rates and availability of production capacity allowed principals to XD and thus reducing inventory In general rates for warehousing have dropped 15-25% Productivity has been increased significantly to compensate the price erosion Due to empty storage capacity all over Europe, storage revenue still under pressure Economy in Western Europe has picked up; price levels will stay behind DSV Capital Markets Day, 11 May 2010 DSV Solutions

17 Focus Areas / Goals Improve earnings in non-performing areas Increase of warehouse space utilisation Continue to focus on cost saving Improve and standardize business processes Roll-out of business suite CargoWRITE Improve ROIC Organic growth Increase cooperation and cross selling with Road and Air & Sea 17 DSV Capital Markets Day, 11 May 2010 DSV Solutions

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