DSV Road Profile North America September 22, 2016
Agenda • • • •
DSV DSV Road, Inc. Group Overview Managed Transportation Why DSV?
2 | DSV – North American Road Profile
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
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 • Socially-engaged with Delivering Better Lives
A strong business partner • Annual revenue of 12 billion USD (FY 2015, pro forma) • Headquartered in Denmark and listed on Nasdaq Copenhagen • More information at DSV.com
3 | DSV – North American Road Profile
DSV + UTi countries
Competitive landscape Global Top 20 Freight Forwarders Based On 2014 Revenue (Billion USD) DHL Logistics (DE) 1
37.5
Kuehne + Nagel (CH) 2
23.4
DB Schenker (DE) 3
19.0
(DK) 4
12.9
C. H. Robinson (US) 5
12.0
CEVA Logistics (NL) 6
7.9
Panalpina (CH) 7
7.3
Dachser (DE) 8 Expeditors (US) 9
7.1 6.6
SNCF Geodis (FR) 10 J. B. Hunt (US) 11
5.8
UPS (US) 12
5.8
Sinotrans (CN) 13
5.7
Gefco (FR) 14
5.5
5.9
Toll (AU) 15
4.6
Bolloré (FR) 16
4.3
Agility Logistics (KW) 17
4.2
Yusen Logistics (JP) 18
4.1
Rhenus (DE) 19
4.1
Hellmann (DE) 20
3.9
• •
DSV and UTi Worldwide combined
•
It is estimated that the top 20 companies control ~40-45% of the total freight forwarding market
The market is fragmented and DSV’s market share is ~ 3%
Source: Journal of Commerce, 15 April 2015, Transport Intelligence 4 | DSV – North American Road Profile
Strong track record of successful M&A 10%
More Than 50 Companies United Over Time 32%
58%
10,000 EURm Pro forma Revenue (2015)
Breakdown of EBIT by division Air & Sea
3%
Road
38%
Solutions
6,500 EURm
59%
Revenue
Breakdown of EBIT by geography EMEA
5,000 EURm
Rest of world
Revenue
4,300 EURm Revenue 100%
2,580 EURm Revenue
360 EURm
110 EURm
110 EURm Revenue
EBIT
5 EURm
1997
EBIT
1976 10 independent hauliers establish DSV
13 EURm
1989
DSV acquires Samson Transport and becomes DSV Samson Transport
DSV acquires several Danish competitors
5 | DSV – North American Road Profile
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
EBIT
200 EURm
EBIT
Revenue
260 EURm
350 EURm
2016
EBIT
DSV acquires UTi Worldwide
2014 DSV strengthens the global network through a number of smaller acquisitions along with solid organic growth
Stronger Together – Creating greater economies of scale with almost double the volume
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 6 | DSV – North American Road Profile New Hire Orientation
Leading road freight operator in Europe
USD 8bn
DSV and UTi combined footprint Bringing Higher Value To Our Customers Via 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
7 | DSV – North American Road Profile
Agenda • • • •
DSV DSV Road, Inc. Group Overview Managed Transportation Why DSV?
8 | DSV – North American Road Profile
DSV North American Road Opportunity Road Logistics Is In Our DNA… It all began in 1976 when Leif Tullberg and ten independent haulers established DSV:
De Sammensluttede Vognmaend.
Direct Translation: The United Haulers.
• DSV created synergies by consolidating and managing dispatch and other functions for the 10 owners. • Several acquisitions has created exponential growth, and catapulted DSV into a top 10 global Freight Forwarder. • Today, DSV is the 3rd largest European Road service provider with approximately 17,000 trucks on the road daily. • DSV Moves+290,000 shipments over North American roads annually.
Our Business Model Adding Value Through Services
9 | DSV – North American Road Profile
The Operating Business Units DSV Road – North America
ROAD TRANSPORT, Inc.
ROAD, Inc.
Specialized Fleet Solutions
Transport Management Solutions
• Up to 120,000 pounds, 16’ 6” overall height, 16’ wide • Heavy haul up to 10 axles • Specialized Over Dimensional, Flatbed, & Step decks (up to 53’)
• • • • • •
Dedicated Fleet Solutions and Contracted Lanes • • • • •
Activity based pricing Improved safety experience Driver turnover – low More predictable operating ratio Preventative maintenance – more easily accomplished • More predictable revenue stream
Intermodal • Direct rail contracts and long term relationships with UP, CSX, NS, BNSF and Canadian railroads • Intermodal into & out of Mexico • Intermodal management software – live feeds, ETA’s and ramp notifications • Extensive Dray network 10 | DSV Road, North America – Profile
Planning and Optimization Carrier Bid and Procurement Services Carrier Contracting and Claims Administration Multi-model Management (FTL, LTL, IM & Parcel) Dedicated Fleet Sizing and Management uOptimize℠ - TMS Software as a Service
FTL Brokerage • • •
North American full truckload brokerage Industry leading brokerage TMS technology Over 42,000 carrier partners nationwide
LTL Brokerage • A select group of premier LTL partners with direct service within the 48 states as well as most points within Canada • Reduced rates as compared to carrier direct or other 3PL providers • BOL generated via web or can be emailed to pickup location upon shipment entry All Road Services Are Available in Canada, United States and Mexico
DSV North American Map Bringing Our Services Close To The Client USA Boston Chicago Dallas Denver Grand Rapids Medford Newark Portland Missoula Laredo
Canada Montreal Toronto
Mexico Guadalajara Mexico City Monterrey Queretaro Puebla 11 | DSV Road, North America – Profile
Agenda • • • •
DSV DSV Road, Inc. Group Overview Managed Transportation Why DSV?
12 | DSV Road, North America – Profile
DSV Road - Transportation Management Profile Highlights •
Main Office: Grand Rapids, MI
•
Managed Solutions • Specialize in complex, multi-mode networks • Manage entire shipment lifecycle • Non-asset based, data driven • Multi-modal (Ground, Air, Ocean, Rail) • Continuous improvement focuses uOptimize℠ • TMS - Software as a Service (SaaS) • Web accessible • User controlled and managed • Industry leading optimization technology
•
13 | DSV Road, North America – Profile
Transportation Management Transportation Management Service Offerings: •
Multi-Modal Order Management
•
Planning and Optimization
•
Carrier Bid and Procurement Services
•
Carrier Contracting and Claims Administration
•
Dedicated Fleet Sizing and Management
•
Truck-brokerage Services
•
Track and Trace Visibility
•
Freight Bill Audit and Payment
•
Freight Spend GL Coding and Accruals
•
Operational and Financial Reporting
•
Network Continuous Improvement
14 | DSV Road, North America – Profile
Transportation Management uOptimize℠
• DSV’s new client offering – Simplified Transportation Management Solution providing: • Order Management – Multiple import options with a simplified workflow
Order Flow: Orders Received
Optimization
• Optimization – Automatic and accessible
• Load Execution
Manual Building
– Dynamically build loads with a proven, established workflow
• Visibility – Enhanced load status and planning capabilities – Increased efficiency and productivity
• Business Intelligence – Proactive and timely data access that enhances proactive decision-making and increased profitability
15 | DSV Road, America – Profile NewNorth Hire Orientation
Tendering
Load Plan Generated
Load Status Updates
Agenda • • • •
DSV DSV Road, Inc. Group Overview Managed Transportation Why DSV?
16 | DSV Road, North America – Profile
Why DSV Is The Right Solution • Managed Transportation • Using JDA software – one of the most powerful TMS tools in the industry • Transportation Management and Optimization one platform for all modes across all plant operations • Strategic support and network modeling • Reduced information technology requirements and resources • Improved reporting and business intelligence • Leverages a proven industry provider and current partner
• Demand Management • Supplier portal provides plants with SKU level visibility to help improve inventory control • Reduced inventory and admin expenses • Improved supply chain control • Supplier compliance tracking • Improved analytics and reporting capabilities
• Visibility • Single, integrated platform for growth providing complete network visibility • End to end analytics and solutions • Promotes cost savings initiatives • Repeatable solutions and best practices • Enhanced communication
17 | DSV Road, North America – Profile
Managed Transportation
Demand Management
Visibility
www.us.dsv.com
18 | DSV Road, North America – Profile
