DSV – global transport and logistics Danish-American Business Forum, Hedehusene 31 March 2016 Jens Bjørn Andersen, CEO

Agenda

1

DSV at a glance

2

The acquisition of US based UTi Worldwide Inc.

3

US – our most profitable market

4

Lessons learned

2 | Danish-American Business Forum, Hedehusene 31 March 2016

DSV – Global Transport and Logistics – the new DSV including UTi Worldwide Inc.

A global network • Own operations in more than 80 countries • More than 1,000 branch offices, terminals and warehouse facilities • 4th largest global freight forwarder • Asset light business model

One company – three divisions • Air & Sea – global network • Road – overland transport on four continents • Solutions – contract logistics services worldwide

A dedicated CSR profile • Based on UN Global Compact

A strong business partner • • • •

Annual revenue of 12 billion USD (FY 2015, pro forma) Headquartered in Denmark and listed on Nasdaq Copenhagen No majority shareholder – 100% free float More information at DSV.com

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DSV + UTi countries

The DSV business model – adding value through services

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From local to global 10%

– from 10 to more than 40,000 people 32%

58%

12,000 USDm Pro forma Revenue (2015)

Breakdown of EBIT by division Air & Sea

3%

Road

38%

Solutions

8,600 USDm

59%

Revenue

Breakdown of EBIT by geography EMEA

6,600 USDm

Rest of world

Revenue

5,600 USDm Revenue 100%

3,400 USDm Revenue

475 USDm

150 USDm

140 USDm Revenue

EBIT

6 USDm

1997

EBIT

1976 10 independent hauliers establish DSV

17 USDm

1989

DSV acquires Samson Transport and becomes DSV Samson Transport

2008

EBIT

The DSV activities change name from DFDS Transport to DSV (2007) and DSV acquires ABX LOGISTICS

2006

2000

DSV acquires Frans Maas

DSV acquires DFDS Dan Transport Group and quadruples the size of the company

DSV acquires several Danish competitors

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EBIT

265 USDm

EBIT

Revenue

340 USDm

460 USDm

2016

EBIT

DSV acquires UTi Worldwide

2014 DSV strengthens the global network through a number of smaller acquisitions along with solid organic growth

Industry trends – stay ahead of the game Key trends ”Backsourcing”

Complexity

Technology

E-commerce

Our take •

Some production is likely to move back from China to North America and Europe

•

New markets and business opportunities arise

•

Modern supply chains rely on parts/pieces from all over the world

•

Shift from supply chain to demand chain – smaller but more frequent shipments

•

IT drives productivity improvements

•

Customers expect easy access via digital platforms

•

Amazon enters the market place

•

Supply chains are changing – especially the last mile

•

Freight forwarders must have e-commerce in the product portfolio

•

We maintain the asset light approach – and work with parcel distributors

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The acquisition of US based UTi Worldwide Inc.

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The next big step for DSV – the transaction was finalised 22 January 2016

21,000

EMPLOYEES

23,000

2,400,000

LOGISTICS CENTRES (m2)

2,300,000

450,000

CONTAINERS (TEU)

850,000

300,000

AIR FREIGHT (tonnes)

300,000

Distribution in North America, South Africa and Asia

ROAD FREIGHT

USD 4bn

ANNUAL TURNOVER

For illustration purposes only 8 | Danish-American Business Forum, Hedehusene 31 March 2016

Leading road freight operator in Europe

USD 8bn

Expanding our US operations – creating one of the world’s strongest transport and logistics networks

Europe 366 offices and road terminals 121 logistics facilities

Americas

100 offices 22 logistics facilities

56 offices 2 logistics facilities 55 offices 48 logistics facilities

APAC Africa 31 offices 0 logistics facilities

86 offices 11 logistics facilities 105 offices 23 logistics facilities

49 offices 62 logistics facilities

Number of offices and facilities are pre-integration and excludes client-owned facilities 9 | Danish-American Business Forum, Hedehusene 31 March 2016

US – our most profitable market

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2015 was an exceptional year for the US operations – regional development FY 2015 (DKKm)

1,915 1,806

+6%

660 475 452

EMEA

366

+46% +30%

Americas

2015 2014

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APAC

Our US journey started in 1980 in New Jersey – one step at a time… DSV acquires UTi Worldwide Inc. doubling the size of the US operations

Offices and logistics facilities: 100 Employees: 4,500 (DSV + UTi)

2016

DSV opens office #26 in the US

2014

DSV acquires SBS Worldwide

2013

DSV acquires ABX LOGISTICS

2008

DFDS Transport takes the name of the parent company DSV for brand continuity

Offices and logistics facilities: 20 Employees: 365

2007

Dan Transport becomes DFDS Transport

1999

Major US expansion process begins with Atlanta

1990

Dan Transport is appointed official IATA agent

1989

US Expansion begins, Chicago and Los Angeles branch offices are opened

1985

Dan Transport obtains Freight Forwarder License (FMC) and opens New Jersey office

Offices and logistics facilities: 1 Employees: 3

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1980

Strong management team and focus on sustainable growth •

Organic growth and acquisitions •

•

•

When a new office becomes profitable, we open the next – sustainable growth

565

Annual growth rate = 30%

Mainly air and sea freight services •

•

Financial development – EBIT (DKKm)

The acquisition of UTi adds truck brokerage and contract logistics to our product offering

US has been a key driver for growth in DSV in recent years One of the 10 largest operators in the US

151

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Overview of offices (pre UTi integration) WA

ND

MT

MN ME

SD

OR

•

Further expansion in the US remains a high priority for DSV

ID

NV

WI

WY

MI

CO

IL

KS

MO

CA OK AZ

NM

AR

OH KY

PA MD WV VA

TN

NC

IN

TX

GA

LA

FL

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CT NJ DE

SC MS AL

NH

NY

IA

N E UT

VT

MA RI

Lessons learned – living the American dream

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Lessons learned – doing business in the US as a foreign company

•

Attractive for our employees to go and work in the US

•

Be close to your customers – customers expect a high service level

•

Combining Danish and American culture has been very successful

•

High compliance standards – serves as best practice for the rest of the world

•

Fantastic scale opportunities – one big market place

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Thank you for your attention – any questions?