Annual Report 2023
Keeping supply
chains flowing
DSV A/S
Hovedgaden 630
2640 Hedehusene
Denmark
CVR no. 58 23 35 28
1 January – 31 December 2023
DSV is one of the world’s leading freight forwarders. We connect
We keep supply chains flowing – from shipper to customer – and
help to deliver sustainable growth. By giving our customers the
logistics services they require. By running a profitable operation that
delivers return on investment for our shareholders. And by giving
our people an inspiring place to work and equal oppor tunities to
develop their talent.
Combining the latest technologies and the talent of our strong global
workforce, we make supply chains leaner and more efficient. That is
how we will help to shape a sustainable future.
Welcome to our Annual Report 2023.
Delivering sustainable growth
DSV A/S
Hovedgaden 630, 2640 Hedehusene, Denmark
Tel. +45 43 20 30 40, CVR no. 58 23 35 28
Annual Report for the year ending 31 December 2023
(47th financial year). Published 1 February 2024.
Contents
Management’s
commentary
Introduction
Letter from our new CEO and our departing CEO ................ 4
Highlights 2023 ............................................. 6
Five-year overview........................................... 8
Strategy and financial targets
Our purpose and strategy. .................................... 9
Sustainable logistics for a fast-changing world.................. 11
Our business model ......................................... 13
Our industry and market trends............................... 14
A responsive approach ....................................... 16
Outlook for 2024 and 2026 financial targets................... 17
Capital structure and allocation ............................... 18
Planned NEOM joint venture..................................19
Financial and non-financial performance
Financial review ............................................ 20
Sustainability progress .......................................24
Air & Sea ................................................... 25
Road ...................................................... 28
Solutions ................................................... 30
Corporate governance and
shareholder information
Risk management ........................................... 32
Corporate governance ....................................... 37
Board of Directors........................................... 40
Shareholder information ..................................... 41
Other information
Quarterly financial highlights ................................. 43
Financial
statements
Consolidated financial statements
Statement of profit or loss ................................... 45
Statement of comprehensive income .......................... 45
Statement of cash flows ..................................... 46
Statement of financial position................................ 47
Statement of changes in equity ............................... 48
Notes to the consolidated financial statements ................. 49
Definition of key figures and ratios ............................ 82
Group company overview .................................... 83
Statements
Management’s statement .................................... 90
Independent Auditor’s reports ................................ 91
Parent Company financial statements
Parent Company financial statements.......................... 94
3 DSV Annual Report 2023 Contents
Changing of
the guards while
keeping supply
chains flowing
Over the last 12 months, we have witnessed soft demand and
a gradual normalisation of global freight markets. Within this
environment, we utilised our flexible business model and our
dedicated employees delivered solid financial results. 2023
was also a year when we announced an exclusive logistics joint
venture with NEOM Company, fine-tuned our organic growth
strategy and developed our decarbonisation roadmap. DSV
is in good shape for Jens Lund to succeed as Group CEO and
continue to deliver on our long-term ambitions.
Letter from our new CEO and our departing CEO
4 DSV Annual Report 2023 Introduction
Solid financial performance
We delivered a solid set of results in a year where global trade volumes
and freight rates were in decline and freight markets highly competitive.
Our gross profit for the year amounted to DKK 43,818 million (-13.4%),
and our operating profit before special items was DKK 17,723 million
(-27.4%), in line with our financial guidance for the year.
Our adjusted free cash flow for 2023 totalled DKK 11,471 million
(-49.7%) and ROIC 17.8% compared to 25.1% last year. Read more
about our Group results on pages 20-23.
The decline in earnings was expected after recent years’ extraordinary
market conditions. The normalisation had the most significant impact in
our Air & Sea division, where a general macroeconomic slowdown and
reduction of global inventory impacted activity levels significantly. Across
all three divisions we delivered a strong performance. During the year, we
have utilised our flexible business model, adjusting capacity when needed,
and we maintained our focus on delivering good service and creating
value for our customers.
Navigating macroeconomy and geopolitics
We began 2023 under a cloud of uncertainty, amid high inflation and
rising interest rates. These macroeconomic factors alongside the normali-
sation of market conditions had a significant impact on trade volumes.
Towards the end of 2023, we saw some improvements in volumes,
but a real pick-up in demand did not materialise.
Geopolitical conflicts and regional instabilities impacted our operations
and added to existing economic uncertainty. The war in Ukraine and
subsequent sanctions on Russia continued to exert pressure on trade
flows and impact commodity prices.
More recently, the Israel – Hamas conflict has led to further regional un-
rest. And as we write this, recent attacks on commercial ships in the Red
Sea continue to disrupt access to the Suez Canal. This has caused new
unrest and is a clear reminder that global supply chains are fragile and
that we must be flexible and do our part to keep supply chains flowing.
Growth strategy
Within this ever-evolving and competitive landscape, it is essential that
we have a clearly defined strategy to navigate towards future growth.
We have built a strong foundation via several acquisitions – and we
continue to have appetite for M&A.
This goes hand in hand with our focus on organic growth and our aim to
increase our market share across our divisions. In 2023, we strengthened
our network services for the global air and sea markets as well as the
European road market. We are already seeing positive results from these
efforts, and we will continue to develop these business areas.
Another important component of our growth strategy is a more custom-
er-focused approach. Recent supply chain challenges have reinforced the
importance of being able to understand our customers’ industries and ad-
dress their unique challenges. To this end, we are strengthening our com-
mercial approach with even greater emphasis on industry-specific solutions.
It has also been exciting to witness new technologies such as our AI
Factory being utilised within our organisation this year. Digitalisation and
efficient infrastructure are key enablers for growth in our industry, and
we have developed long-term strategies for these areas to support sup-
ply chain visibility for our customers and enhance our own productivity.
A new venture
In 2023, we announced a new joint venture with NEOM Company, which is
developing the NEOM region in Saudi Arabia. It is a one-of-a-kind project,
and our role will be to provide transport and logistics services in the coming
years. The NEOM joint venture represents an important strategic growth
opportunity for DSV, both in the Middle East and our global network. We
are proud of this exclusive agreement and look forward to getting it up
and running – which is expected to be in the second quarter of 2024.
As a global organisation, we must ensure that consistent human and
labour rights protections are in place across all operations. DSV’s policies
and values also extend to the NEOM joint venture, which will be operated
under the same human rights policy and safe working standards that
we have in place across our global network, including our existing sub-
sidiaries in Saudi Arabia.
Roadmap for our sustainability journey
Early in 2023, we updated our 2030 mid-term targets and committed
to reaching net-zero carbon emissions across our operations by 2050. In
2023, we developed carbon roadmaps, providing milestones and outlining
the main tools, initiatives and technologies required to address our decar-
bonisation targets. Our roadmaps set a clear framework for each division
to align our climate action for scopes 1, 2 & 3.
During the year, we supported several new sustainability initiatives through
funding from our internal CO
2
fee programme and introduced DSV Energy,
with the aim of utilising our facility rooftops for renewable energy production.
To meet our future targets, we must collaborate with our customers and sup-
pliers. Our Green Logistics services continue to evolve, enabling customers
to decarbonise their supply chains and get closer to their emissions targets.
Thank you
We have been on a fantastic journey together since 2008 and would like
to take this opportunity to thank our customers, suppliers and partners
for their support and confidence in DSV during Jens Bjørn’s almost 16
years as Group CEO. We would also like to thank our many dedicated DSV
colleagues around the world, who have been and continue to be central to
DSV’s growth and success.
Whatever the market challenges we will encounter in 2024, we have a
strong team and have established a solid foundation for DSV’s continued
growth in the coming years.
Jens H. Lund
New Group CEO, DSV A/S
Jens Bjørn Andersen
Departing Group CEO, DSV A/S
5 DSV Annual Report 2023 Introduction
Highlights
Group results
Gross profit
DKK , million
Air & Sea
% of total
Road
% of total
Solutions
% of total
EBIT before special items
DKK , million
Air & Sea
% of total
Road
% of total
Solutions
% of total
EBIT before special items
EBIT before special items was in line with our latest out-
look for the year, and as expected, the financial results
for 2023 did not match the record earnings of 2022.
During most of 2023, the demand for transport and
logistics services was impacted by economic slowdown
and destocking. With our classic DSV approach, we
utilised our flexible business model to adjust capacity,
optimise productivity and project earnings.
.%
.%
Adjusted free cash flow
Adjusted free cash flow was down compared to last
year, primarily due to lower EBITDA. In line with our
capital allocation policy, we allocated DKK 15,421
million to shareholders in 2023 through share buyback
and dividend.
ROIC before tax
The decline in return on invested capital before tax was
due to lower earnings while invested capital was stable.
We maintain our 2026 target of a minimum pre-tax
ROIC of 20%.
,
,
,-,
,
,
Actual
Actual
Actual
Actual
Actual
Actual
Outlook
Growth in constant currencies.
Growth in constant currencies.
-.%
growth in
-.%
growth in
6 DSV Annual Report 2023 Introduction
Decarbonisation progress
2019
baseline
2022
progress
2023
progress
Scope 1+2
Scope 3
409
20,117
15,489
11,734
441 413
-.%
+.%
SBTi target boundary (CO
2
e -
‘000 tonnes)
Solutions
The division reported a 5.0% increase in gross profit but 10.7%
decrease in EBIT before special items for 2023. The market was
impacted by the general decline in global trade, but with pockets
of growth, mainly within the e-commerce segment. The division
continued the consolidation into multi-client campuses and the
expansion of its global footprint.
EBIT before special items: DKK 2,355 million
-.%
Road
Despite the soft markets with lower activity and declining freight
rates, the division achieved good operational performance and
results. Gross profit and EBIT before special items were in line
with 2022. We estimate that the division grew across most
markets as a result of our strong network and market position.
EBIT before special items: DKK 2,009 million
-.%
Air & Sea
In a market characterised by reduced volumes and a gradual normalisation of
both freight rates and gross profit yields, the division saw gross profit down
22.4% and EBIT down 33.1% for the year. The negative volume trend was
most significant for air freight, whereas the demand for sea freight was more
resilient. With strong focus on capacity management, the division maintained
a conversion ratio above 50% for the year.
EBIT before special items: DKK 13,363 million
-.%
DKK 11,166 million DKK 5,073 million
DKK 8,668 millionDKK 25,300 million
DKK 7,352 million DKK 3,982 million
% of total % of total
% of total
% of total
Americas
Gross profit
EBIT before
special items
% of total
EMEA
% of total
APAC
7 DSV Annual Report 2023 Introduction
Five-year overview
Ratios 2023 2022 2021 2020 2019
Financial ratios (%)
Gross margin 29.1 22.1 20.6 24.6 25.1
Operating margin 11.8 10.7 8.9 8.2 7.0
Conversion ratio 40.4 48.3 43.1 33.4 28.0
Eective tax rate 24.8 23.9 24.5 24.3 25.8
ROIC before tax 17.8 25.1 19.6 14.3 13.4
Return on equity 17.6 24.1 18.4 8.8 11.6
Solvency ratio 46.7 45.0 45.9 49.2 50.7
Gearing ratio 1.5 1.0 1.4 1.3 1.8
Share ratios
Earnings per share of DKK 1 57.7 77.3 49.3 18.7 18.7
Diluted adjusted earnings per share of DKK 1 58.7 81.4 50.9 26.5 22.1
Number of shares issued (‘000) 219,000 219,000 240,000 230,000 235,000
Share price at year-end (DKK) 1,185.5 1,096.5 1,527.5 1,020.0 767.8
Proposed dividend per share (DKK) 7.00 6.50 5.50 4.00 2.50
Financials 2023 2022 2021 2020 2019
Results (DKKm)
Revenue 150,785 235,665 182,306 115,932 94,701
Gross profit 43,818 52,149 37,615 28,534 23,754
Operating profit before amortisation and
depreciation (EBITDA) before special items 22,997 30,275 20,417 13,559 10,292
Operating profit (EBIT) before special items 17,723 25,204 16,223 9,520 6,654
Special items, costs - 1,117 478 2,164 800
Net financial expenses 1,233 866 841 1,729 858
Profit for the year 12,407 17,671 11,254 4,258 3,706
Adjusted earnings 12,650 18,765 11,847 6,146 4,456
Cash flow (DKKm)
Operating activities 16,458 26,846 12,202 10,276 6,879
Investing activities (2,030) (966) 420 (556) 1,371
Free cash flow 14,428 25,880 12,622 9,720 8,250
Adjusted free cash flow 11,471 22,810 8,659 8,746 3,678
Share buyback 13,997 20,313 17,841 5,031 4,888
Dividends distributed 1,424 1,320 920 588 423
Cash flow for the year (3,146) 1,635 3,942 2,721 766
Gross investment in property, plant and equipment 2,030 1,514 1,180 1,121 1,000
Financial position (DKKm)
DSV A/S shareholders’ share of equity 68,703 71,519 74,103 47,385 49,430
Non-controlling interests 263 222 175 (88) (111)
Total assets 147,110 159,045 161,395 96,250 97,557
Net working capital (NWC) 4,742 5,116 8,031 2,701 3,125
Net interest-bearing debt (NIBD) 34,583 29,870 29,245 18,189 18,355
Invested capital 99,973 99,540 101,231 64,285 68,595
For a definition of financial key figures and ratios, please refer to page 82.
For a definition of sustainability data, please refer to our Sustainability Report.
Sustainability 2023 2022 2021 2020 2019
CO
2
e (g/tonne-km) - Air transport 627.6 694.4 707.4 704.0 718.2
CO
2
e (g/tonne-km) - Sea transport 7.0 6.6 6.5 6.2 6.4
CO
2
e (g/tonne-km) - Land transport 94.3 89.4 89.8 86.3 93.2
Lost Time Injury Frequency Rate 3.3 2.8 4.5 6.7 5.0
Lost workdays due to lost time injury 50.7 52.0 61.0 78.8 97.5
Gender diversity (%) (female/male) 38/62 39/61 38/62 38/62 39/61
Employee turnover ratio (adjusted for synergies) 20.7 22.1 21.9 20.5 21.1
Full-time employees (FTE) 73,577 76,283 77,958 56,621 61,216
8 DSV Annual Report 2023 Introduction
Our strategy model
Keeping supply chains flowing
Our strategy is anchored in our corporate purpose of keeping supply
chains flowing in a world of change, acknowledging our role as part of
the global infrastructure enabling world trade.
As one of the world’s leading freight forwarders, we move millions of ship-
ments across oceans and continents. We have earned the trust of our
customers and partners by ensuring smooth and efficient storage and
distri bution of our customers’ goods, by air, sea, road and rail.
With global supply chains becoming increasingly complex, we are focused
on leveraging our leading global network and enhancing our service offer-
ings. All with the ambition of creating long-term value and sustain able
growth for our customers, employees, shareholders and society as
a whole.
Enabling sustainable growth through operational excellence
Our organic growth target remains unchanged: we pursue profitable
above-market growth, and we aim to gain market share across our three
divisions and the markets we operate in.
As our global organisation becomes larger, the geographical footprint more
diverse and the services we offer to our customers more advanced, our
foundation will always be operational excellence.
We continue to pursue organic growth complemented by acquisitions to further
strengthen our market position. We have in 2023 strengthened our global network,
and we have taken the first steps towards an even more customer-focused approach.
Our purpose and strategy
We do this by creating efficient and sustainable global trade flows for our
customers. And by combining the talent of our strong workforce with scal-
able physical and digital infrastructure facilitating efficient workflows.
By defining and standardising our service offerings across geographies
and divisions, we enable digitalisation and automation and high, consistent
service levels.
As we pursue the best and most efficient solutions, we remain mindful of
the environmental impact of our services, driving down resource consump-
tion as well as providing our customers with options to reduce emissions.
Leveraging our global network
The successful integrations of UTi Worldwide, Panalpina Welttransport and
Agility's Global Integrated Logistics (GIL) have turned us into a top three
global player in our industry with a worldwide geographical footprint and
more advanced and competitive service offerings to our customers.
Being a global corporation, we leverage our extensive scale. We imple-
ment enterprise-level solutions and collaborate to ensure uniformity
throughout our network, with a focus on centralising relevant opera-
tional and back- office functions.
To optimise efficiency, reduce costs and enhance overall supply chain per-
formance for our customers, we offer end-to-end and multimodal services
Global
network
People
Purpose
Keeping supply
chains flowing in a
world of change
Vision
Sustainable
growth
Mission
Operational
excellence
Customers
first
Digital
M&A
Sustainability
Strategic focus areas
Key enablers
9 DSV Annual Report 2023 Strategy and financial targets
across our global network and divisions, managing the entire supply chain
process from origin to destination.
During 2023, we have strengthened our network through the strategic
development of our network services, and we have seen positive results
of these efforts. This includes our air charter network, our LCL (less-than-
container load) network, our European groupage network as well as our
e-commerce solutions.
Through the establishment of large, automated multi-user warehouses,
we offer flexible and modern contract logistics solutions, accommodating
changes in global supply chains and distribution channels.
In October 2023, we announced an exclusive logistics joint venture with
NEOM, offering a significant long-term growth opportunity, both in Saudi
Arabia and for the global DSV network. Completion is subject to incorpora-
tion of the entity and issuance of relevant public operating licenses in Saudi
Arabia, which are expected in Q2 2024.
Customers first
We are continuously advancing our industry expertise and digital solutions
to strengthen our customers’ experience. This enables us to take an out-
side-in approach, understanding our customers’ pain points and proactively
address topics like supply chain optimisation and sustainability.
Driven by acquisitions, our customer mix has changed in recent years,
tipping from small and medium-sized customers towards larger customers.
To strengthen our value proposition towards and relationship with this
segment, we expand our control towers and centres of excellence setup
with the needed industry specific capabilities, e.g. within automotive,
industrials, fashion/retail, healthcare and technology. This enables us to
offer tailored solutions and one point of contact across our divisions for
both commercial, operational and financial inquiries.
We continue to optimise and digitalise our customer facing applications,
including our portal myDSV and through API/EDI integrations to improve the
customer experience and provide supply chain visibility for our customers.
Acquisition strategy to complement organic growth
We monitor the market for relevant, value-creating acquisitions, as we
believe there is room for further consolidation within the fragmented
transport and logistics industry. We target both large freight forwarding
companies and small companies with specific logistics competences.
In April 2023, we acquired the US-based transport and logistics companies
S&M Moving Systems West and Global Diversity Logistics, thereby
strengthening our position within the semiconductor industry.
People is our DNA
Our close to 75,000 employees worldwide – from office workers to ware-
house operatives – are the heart of our business and pivotal for the long-
term success of our company.
We maintain a flat, locally empowered organisation with a high degree of
ownership and P&L accountability. We combine this with strong global sys-
tems, workflows and policies. The flat organisational structure allows for
swift escalation and timely response to issues that impact our customers
as well as the Group’s earnings and financial and strategic targets.
Diversity makes us a more dynamic place to work, ultimately leading to
better business decisions. Representing more than 160 nationalities in over
80 countries, we focus on providing a safe, healthy and nurturing workplace
with an inclusive culture, where everyone is provided with the right digital
tools, training and conditions to grow and develop their talent.
As for any company, hiring and keeping talented employees is critical for
us. To attract, motivate and retain the best, we provide career advancing
opportunities through our DSV Academy and our talent management
programmes.
Digitalisation is a driving force
Technology and digitalisation are paramount in achieving transparency,
productivity and scalability in our business and have always been a key
enabler for DSV. We continuously monitor the latest trends and adopt
new technologies that benefit our business and our customers.
We ensure transparency across our business by measuring productivity
and financial performance, providing our managers with the required in-
sights to inform their decision making. High data quality across systems,
activity-based costing and a strong financial organisation are key ele-
ments in this.
To support our growth strategy, both our physical and digital infrastruc-
ture must be able to scale. Working according to the principle of one main
system per business area, we run a consolidated, standardised and scala-
ble IT platform and, where available, we use standard off-the-shelf IT
systems with high focus on data quality and security. All planning of our
infrastructure and innovation is based on enterprise solutions which can
be applied across our network.
Driving decarbonisation in logistics
We are committed to ensuring responsible and sustainable business prac-
tices everywhere we operate. Together with customers, industry partners
and stakeholders we strive to develop solutions that benefit both our
planet and our business.
We have committed to net-zero emissions across our operations by
2050 and have set ambitious mid-term targets for 2030, accompanied
by detailed roadmaps. Our sustainability strategy is described in more
details in the following chapter.
Fitter for the future
Our skilled people, strong digital infrastructure and a clear sustainability
strategy are vital enablers for our continued journey. Based on the strong
foundation we have today, our ambitions for the coming years revolve
around three areas to drive growth: leveraging our global network, cus-
tomers first and M&A.
Our commitment remains unchanged: we aim to create value for DSV’s
stakeholders – not least our shareholders.
10 DSV Annual Report 2023 Strategy and financial targets
Sustainability in DSV is anchored at our highest management levels with
the Board of Directors and the Executive Board.
In close collaboration with the Executive Board, the Board of Directors is
responsible for setting the direction for our sustainability agenda. It shapes
the strategy, reviews the performance and further develops our sustaina-
bility strategy and targets in close cooperation with the Executive Board.
To help drive strategic direction and progress, we have established a
Sustainability Board, which consist of the Executive Board, divisional
management and other relevant management representatives.
Our approach to sustainability
Our sustainability strategy and priorities are based on recurrent analyses
of materiality, risks and opportunities and on continuous dialogue with our
stakeholders. Our sustainability priorities, material topics and main targets
are highlighted in the adjacent figure.
Sustainability plays a key role in our business
strategy and we continue to evolve our strategy
and progress towards our ambitious targets.
Sustainable
logistics for a
fast-changing
world
Sustainability strategy
Sustainability
priorities
Material
topics
Highlighted
targets
Social
Caring for our em ployees
We strive to be a safe and inclusive place to
work. We work hard to attract and keep talent
by giving employees responsibility and growth
opportunities. We want to promote diver sity,
protect rights and improve our employees'
well-being.
Engaging with communities
We work with local communities across the
globe. We respond to local needs, challenges
and emergencies everywhere we do business.
• Diversity and inclusion
• Human capital development
• Health and safety
• Labour rights & working conditions
• Human rights
• Community engagement
2024
Number of fatalities must not exceed 0.
Lost Time Injuries Frequence Rate (LTIFR) must not
exceed 3.5 per million working hours.
An eNPS score in our global engagement survey
that is at or above the global benchmark.
Increase the percentage of female leaders on
director level and above.
Governance
Doing business with integrity
We operate with honesty and transpar-
ency and pay taxes where we generate
our profits. We handle data ethically with
appropriate safeguards around data pri-
vacy.
Running a responsible supply chain
We make sure our suppliers meet our
standards and understand our sustaina-
bility goals.
• Business integrity
• Responsible supply chain
• Tax transparency
• Data ethics and cybersecurity
2024
Ensure that all salaried employees
receive training on DSV’s Code of
Conduct every 24 months.
Perform 1,000 supplier audits.
Environment
Reducing our impact
We act as a key enabler for decarbonisation
across our value chain with the aim of re-
ducing transport and logistics emissions.
We are committed to reducing the en viron-
mental impact throughout our operations.
• Climate change
• Waste management and recycling
2024
Total percentage of recycled waste – 53%.
4% reduction of total CO
2
emissions in
scopes 1 and 2.
2030
Reduce scopes 1 and 2 absolute emissions
by 50% and scope 3* absolute emissions
by 30% (2019 baseline).
* Scope 3 covers transportation and business travel. Target boundary includes land-related emissions and removals from bioenergy feedstocks.
11 DSV Annual Report 2023 Strategy and financial targets
Environment
As one of the world’s largest freight forwarding companies,
we are committed to reducing our environmental impact and
to enable decarbonisation across our value chain.
DSV has committed to achieving net-zero operations in all
scopes by 2050. Our near-term 2030 carbon reduction tar-
gets were validated by SBTi in 2023.
To ensure that we are on track to reach our carbon reduction
targets, we developed a decarbonisation roadmap in 2023,
outlining the main decarbonisation levers that are critical to
move towards our 2030 targets and set the course towards
net zero. We have a strong foundation in place, but it is also
clear that the journey will require cooperation across the
transport sector, regulation and, not least, the availability of
scalable new technologies.
Through our Green Logistics services, we use our exten-
sive knowledge of global supply chain networks to help our
customers reduce emissions and eventually decarbonise their
supply chains. In 2023, we added several new services to our
Green Logistics catalogue. We carried out global training for
our commercial organisation on our services, as we are seeing
increasing demand for our Green Logistics services.
Across our operations we are working to optimise energy
consumption, water usage and responsible natural resource
management. In 2023, we updated our Waste management
Policy and introduced new global targets for recycling to
support a stronger focus on circular resource usage across
our organisation.
In 2023, we also added new requirements to our construction
tenders to include lifecycle carbon emissions. Furthermore,
we carried out a biodiversity impact assessment for our own
operations and for key activities in our value chain.
Social
DSV is a people business, and our employees are our most impor-
tant asset. Approximately 75,000 employees of more than 160
nationalities in more than 80 countries make up DSV. Our employ-
ees represent various cultures, backgrounds and religious beliefs.
DSV strives to be a workplace where everyone can thrive, realise
their potential and feel respected. We are committed to ensuring
a healthy and safe working environment, respecting labour rights,
fostering diversity and inclusion and supporting our employees with
training and development opportunities across the organisation.
We conduct annual global people surveys for all employees
to ensure that we can systematically identify, monitor and
address relevant issues.
Human rights are fundamental and must be protected at all
times. That is why all people who carry out services for DSV,
whether directly as DSV employees or indirectly as employees
of our suppliers, must be protected. In 2023, we launched a
stand-alone Human Rights Policy to further detail and guide
our organisation on our standards and our position towards
salient human rights risks in our industry.
Our Human Rights Programme runs an annual cycle to ensure
that human rights risks are identified, addressed and mitigated
across all DSV entities – including our planned joint venture
with NEOM company.
We are committed to supporting the local communities in
which we do business and to support local needs as part of our
engagement. In 2023, we entered a strategic partnership with
UNICEF with a shared vision to leverage our logistics network and
expertise to provide children globally access to essential supplies.
This year, we also launched an interactive Sustainability Impact
Map on our website. The impact map showcases the many
different local initiatives taken across our global operations to
reach our sustainability priorities.
Governance
We are committed to doing business with integrity, respecting
different cultures and the dignity and rights of individuals. Our
strong set of ethical standards governs how we do business
and holds our suppliers to the same standards of integrity.
Our ethical behaviour is governed by our business ethics frame-
work, which sets clear standards throughout our operations.
The framework consists of our Code of Conduct, including a
zero-tolerance approach towards any form of bribery or corrup-
tion, as well as a Supplier Code of Conduct and Whistleblower
Policy. In 2023, we carried out a global awareness campaign to
support awareness of our ethical standards and DSV’s Whistle-
blower system.
As a freight forwarder, our services are generally performed
by third-party suppliers. We set the same standards for our
suppliers as we do for our employees through our Supplier
Code of Conduct.
Reporting on
corporate social
responsibility
Reporting on corpo-
rate social responsi-
bility cf. section 99a
of the Danish Financial
Statements Act
We have reported
separately on corporate
social responsibility in
our Sustainability Report
2023, in accordance with
section 99a of the Danish
Financial Statements
Act and the disclosure
requirements of Article
8 of Regulation (EU)
2020/852 (EU Tax-
onomy Regulation).
Reporting on diversity
cf. section 107d of
the Danish Financial
Statements Act
We have reported
separately on diversity in
our Sustainability Report
2023, in accordance
with section 107d of
the Danish Financial
Statements Act.
For more information on developments within each
ESG area, please refer to our Sustainability Report at:
Sustainability Report 2023
Towards sustainable
supply chains
12 DSV Annual Report 2023 Strategy and financial targets
Our business model
We ship freight by land, sea and air and provide
contract logistics. Our business model is flexible and
asset light, which helps us to keep supply chains
flowing efficiently, from shipper to consignee.
A light model for the right reasons
Our business model allows us to quickly scale activities to match changes in market
demand or modes of transport. It also helps us choose the best partners for any ser-
vice, based on reliability, available capacity, sustainability factors, transit time and price.
Although we are a global business, we are always close to local markets. Working with
container carriers, airlines, road hauliers and railway operators, we move goods to
wherever they are needed. And being one of the largest buyers globally means that we
– and our customers – benefit from keen pricing and strong, long-standing relation-
ships with carriers.
We offer a unique combination of a highly skilled workforce with extensive industry
know-how, advanced IT systems, modern warehouses and terminals, strong carrier
relationships and a global network across more than 80 countries.
Adding value to complex supply chains
As well as transport, our customers buy a full range of freight forwarding, logistics
and distribution services from us, and we offer supply chain control towers where
we monitor and optimise supply chains.
Our workflows are highly digitalised and our systems tightly integrated with cus-
tomers and suppliers. To cut the environmental impact of our business, we work
closely with customers and suppliers to track and minimise emissions across our
entire supply chain – from shipper to final destination.
End-to-end
logistics
Through our global network, we provide a wide range of end-
to-end supply chain solutions from shipper to consignee.
We track our environmental impact systematically to
make our operations as efficient as possible.
Subcontracted
transport
Warehousing — Picking/packing — Cross-dock terminal — Deconsolidation
Labelling, configuration, testing — Distribution — Documentation & customs clearance
E-commerce fulfilment — Supply chain optimisation — 4PL
Shipment booking — Pick-up — Warehouse — Documentation & customs clearance
Cargo consolidation — Purchase order management
Cross-dock terminal — Insurance
From
shipper
A
B
To
consignee
Freight forwarding services
Logistics and distribution services
13 DSV Annual Report 2023 Strategy and financial targets
5%
Kuehne + Nagel
5%
DHL Logistics
4%
DSV
3%
DB Schenker
3%
SF KEX
20%
Top 6-20
60%
Others,
estimated
A fragmented competitive landscape
With a market share of approximately 4%, we are among the top three
global freight forwarders. Together, the top 20 forwarders have an esti-
mated global market share of 30-40%. The rest of the market consists of
multiple regional and local freight forwarders.
The highly fragmented market creates a competitive pricing landscape,
but because of our scale and logistic competences, large freight forward-
ers like DSV are in a good position to consolidate the market and gain
market share. Our acquisition track record is a strong example of this,
and we expect the consolidation trend to continue in the coming years.
GDP sets the pace for market growth
Historically, there has been a correlation between the growth in global
trade and the expansion of the global economy. However, in 2023,
Our industry and
market trends
The competitive landscape remains fragmented, and several trends are
impacting our customers’ supply chains - not least the trend towards
dual sourcing and regionalisation of production.
this correlation diverged due to global recalibration of inventory levels
and a notable change in consumer spending post-COVID away from
goods towards services. In the coming years, we expect that trade
volumes will grow in line with GDP again, with the highest growth rates
in emerging markets.
A world of change
Driven by changes to global supply chains, geopolitical events and new tech-
nology, several major trends are affecting our customers and the demand
for transport and logistics services. We must understand these dynamics
so we can act quickly to capitalise on opportunities and mitigate threats.
In the following table we have listed important trends affecting our industry.
Market share
Top five global freight forwarders and
market share based on 2022 revenue.
Source: Armstrong
& Associates and
DSV estimates.
Top five
Others
14 DSV Annual Report 2023 Strategy and financial targets
Trends Their impact Our response
Dual sourcing and regionalisation
Companies are adjusting their supply chains to reduce
dependencies and protect their business against future
risks. In recent years, several companies have imple-
mented dual sourcing strategies and moved part of
their production out of China.
While China remains a significant production hub, countries like Viet Nam, South Korea
and India have seen significant production sector growth. Sourcing from multiple coun-
tries reduces dependencies but creates more complex supply chains.
Nearshoring or regionalisation creates new production hubs, with Mexico as the best
example. Extra buffer inventory in proximity to the end market can be another way of
making supply chains more robust.
We help our customers optimise their supply chains – suggesting efficiency improvements to
increase reliability, cut costs or reduce the environmental impact.
By providing supply chain visibility through our digital services, we can support planning and
monitoring all the way from purchase order to final delivery. More complex supply chains may
increase the demand for our services – e.g., purchase order management, cargo consolidation,
customs clearance and warehousing.
Geopolitical instability and protectionism
Geopolitical instability causes tension and unrest.
Global trade flows and economies are impacted by
factors like protectionism, trade wars, and political
and military conflicts.
Across the globe, we continue to see new examples of conflicts, protectionism, changes
to tariffs and embargoes. In 2023, the ongoing war in Ukraine and the conflict in the
Middle East are examples of this development.
When such changes occur, we and our customers must react quickly to keep supply chains flowing.
Short term, we can provide alternative routing and transport modes. Longer term, we help cus-
tomers to adapt and optimise their supply chains. Additionally, we offer a strong compliance setup
to help customers prepare for and adapt to market changes.
Greener supply chains
The demand for more sustainable supply chain
solutions is growing – driven by increasing environ-
mental regulations and consumer pressure.
The transport and logistics industry is a major carbon emitter, and the sector as a whole
must make a significant effort to develop environmentally sustainable business practices
and reduce emissions from its activities.
Having a clear sustainability strategy and service offering is increasingly becoming a
“license to operate” for transport and logistics companies.
DSV is committed to the Science Based targets. In 2023, we updated our 2030 targets, which
have all been validated by SBTi, and we have committed to being net zero by 2050.
In 2023, we continued our efforts to support greener supply chains by implementing an internal
carbon fee funding programme. We also launched DSV Energy, an internal function focusing on
utilising DSV facilities for green energy production. Most importantly, we prepared roadmaps for
our decarbonisation journey, which will be an important foundation for our work and dialogue with
customers and vendors over the coming years.
The rise of e-commerce
Consumer behaviour is becoming increasingly digital,
sending fulfilment centre and last-mile delivery
activities skyward.
During 2023, e-commerce continued to grow, although it did slow down alongside the
global economy. We still expect structurally high growth in this area in the coming years,
both for local and cross-border transactions.
We continue to see growth opportunities within the dynamic e-commerce landscape. Our strategic
focus involves the establishment of automated e-fulfilment centres and customised solutions for large
customers. Our e-commerce “plug & play” warehouse concept supports optimised customer onboard-
ing through standardised rates, integrations and Warehouse Management System (WMS) setup.
Digitalisation and automation
Technology has transformed our industry over the
past decades. This development will continue and
will impact the way we operate and interact with
customers and other stakeholders.
Across supply chains, the demand for visibility and higher productivity – often in tight
labour markets – drives technological development.
Customer and vendor interactions are gradually changing from manual and classic EDI
based to more modern API connections. And to drive productivity and support the
fast-growing e-commerce segment, warehouses are increasingly being fitted with
automated storage & retrieval systems.
We aim to combine our strong logistics competences with advanced digital solutions. We work
with strategic roadmaps to develop our digital and physical infrastructure, and we implement scal-
able technology across our organisation.
Read more about our approach to technology in the following chapter.
New competition emerging
A high level of competition has always been a part of
our industry. In recent years, new competitors have
entered our industry. This includes digital forwarders
and a few of the established ocean carriers.
Digital forwarders typically offer a simple, standardised range of services, mainly fo-
cused on online price quoting and booking. Digital forwarders have a high level of digital
capabilities but a lower level of logistics capabilities, such as operational expertise, global
networks, scale, warehouses and carrier relationships. A few of the established ocean
carriers have launched door-to-door transport services. This has created scenarios
where these carriers are both suppliers and competitors to freight forwarders.
Currently, the new market entrants have not gained material market shares. Leveraging our robust
logistics strengths and a clear plan to bolster our digital capabilities, we are confident that DSV will
remain highly competitive in the market.
15 DSV Annual Report 2023 Strategy and financial targets
Our business operations rely on strong systems and technology. Last year,
our scalable, digital platforms handled almost 360 million transactions. These
platforms not only support efficient workflows; they also ensure fast and
smooth integration of M&As and support our growth strategy. The following
are some of the most significant technologies we are working with.
A digital customer journey fuelled by generative AI
A seamless digital customer journey is key to delivering the services and
quality expected by our customers. We are already applying generative AI
and similar technologies to digitalise the customer journey and eliminate
double entry of data, which often leads to low data quality and slow
processing. With more than 500,000 monthly transactions through our
AI Factory, mainly related to handling of vendor invoices and customs
clearance, we are making good progress.
We have a good customer adoption of our myDSV customer platform,
and we have more than 10,000 direct integrations to carriers and cus-
tomers. However, we still receive many e-mails with shipment data, and
we see potential in automating the handling of these by implementing
generative AI to both uplift data and feed our systems.
Across our network, several manual processes are candidates for automation,
using generative AI to assist our employees. Identifying the right use cases
and implementing enterprise solutions based on AI technology takes time and
a systematic approach. We are taking this seriously by not only empowering
our staff, but also encouraging them to drive further digitalisation.
Digital warehouse twins to drive further automation
We are working closely with our customers to increase automation and
digitalisation of our warehouses, with the implementation of digital twins
A responsive approach
We monitor the latest trends and adapt technologies that benefit our customers and our business.
being a key enabler. Digital warehouse twins enable us to reduce labour
intensive tasks, optimise warehouse utilisation, reduce damages and im-
prove the quality of our services. The technology also paves the way for
the implementation of automated guided vehicles. In general, digital twins
create a collaboration platform for several different automation solutions
and enable further synergies.
The combination of human labour and robots has historically posed a
problem as they can slow each other down. This is to a large degree miti-
gated with digital twins, as they seamlessly communicate with each other.
Semi-autonomous trucks to mitigate driver shortage
DSV is partnering with leading truck manufacturers and technology compa-
nies to test semi-autonomous driving. Advanced Driver Assistance Systems
(ADAS) are central to improving the safety and comfort of our drivers. ADAS
give drivers extra high awareness of their surroundings with the use of sen-
sors, cameras, radars and lidars. This significantly increases traffic safety as
well as the safety and comfort of our drivers, which is key for us to retain
them in our industry. ADAS also support our sustainability agenda, as die-
sel consumption is reduced on trucks using the technology.
Fully autonomous trucks are still a thing of the future, but the technology
can already deliver significant benefits, and at DSV we are keen to drive
the development and exploit the advantages.
Staying abreast of the latest trends
Our Group Innovation team drives our global innovation efforts, monitoring
trends and technologies and prioritising which to explore. Working with
internal and external stakeholders, the team tests ideas, establishes financial
business cases and implements projects across our global network.
DSV technology
trend radar
Power-
to-X
Adopting
Testing
Tracking
Circular
supply chain
Fully
autonomous
trucks
Quantum
computing
Metaverse
Semi-
autonomous
vehicles
Computer
vision
Wearables
Digital
warehouse
twin
Artificial
intelligence
Digital
cargo
twins
Autonomous
drones for
delivery
Automated
guided
vehicles
16 DSV Annual Report 2023 Strategy and financial targets
For Road we expect a flat or low-growth market, while the
Solutions market is expected to achieve higher growth rates
in 2024.
We continue to monitor activity closely across our organisation
and adjust capacity and cost base accordingly.
The outlook for 2024 assumes that the currency exchange
rates, especially the US dollar against DKK, will remain at the
current level.
The geopolitical and macroeconomic environment remains
uncertain, and unforeseen changes may therefore impact
our financial results.
Impact from the planned joint venture with NEOM is not in-
cluded in the financial outlook. 2024 will be a startup year
for the joint venture and we do not expect a material impact
on profit or loss for the year. This will be addressed further
once the joint venture is established.
Assumptions for 2024 financial outlook
For 2024, we expect a decline in earnings and margins com-
pared to 2023. While we expect growth in transport volumes
to return, this will be offset by lower average gross profit
yields for both air and sea.
The World Bank projects global GDP growth around 3% in
2024, and our financial guidance is based on the assumption
that air and sea markets will grow 3-4% in 2024. We continue
to target profitable, above market growth, but our strategic
growth initiatives may only have a gradual impact in 2024.
Outlook for and
financial targets
2026 financial targets
Our 2026 targets are unchanged.
The targets are based on the assumption of stable global eco-
nomic development during the period 2024-26, with average
annual global GDP growth of at least 3% and transport market
growth in line with GDP.
Towards 2026, we will continue our focus on achieving organic
growth ahead of the market, and we see opportunities to im-
prove productivity across the Group.
Our IT systems, infrastructure and back-office functions are
scalable, providing opportunities to leverage operations in
all three divisions.
The targets are based on organic growth and do not include
the potential impact from larger acquisitions in the period.
The strategic objectives of the Group are translated into the
following targets:
Outlook
(DKKm)
2023
actual
Outlook
2024
Operating profit (EBIT)
before special items 17,723
15,000-
17,000
Eective tax rate 24.8% 24%
For 2024, we expect EBIT before special items of DKK 15,000-17,000 million.
We maintain our 2026 financial targets and aim for a 45% conversion ratio
for the Group.
2026 targets (%)
2023
actual
2026
targets
DSV Group
Conversion ratio 40.4 >45.0
ROIC (before tax) 17.8 >20.0
Divisional targets
for conversion ratio
Air & Sea 51.5 >50.0
Road 25.6 >30.0
Solutions 24.8 >30.0
Forward-looking
statements
This Annual Report
includes forward-looking
statements on various
matters, such as
expected earnings and
future strategies and
expansion plans. Such
statements are uncertain
and involve various risks,
because many factors,
some of which are
beyond our control,
may result in actual
developments diering
considerably from the
expectations set out in
the 2023 Annual Report.
Such factors include,
but are not limited to,
general economic and
business conditions,
exchange rate and
interest rate fluctuations,
the demand for our
services, competition
in the transport sector,
operational problems
in one or more of
DSV’s sub sidiaries and
uncertainty in connection
with the acquisition and
divestment of enterprises.
17 DSV Annual Report 2023 Strategy and financial targets
Value-adding investments
DSV pursues an active acquisition strategy. Our acquisitions
have created substantial value for shareholders over the years
and have also contributed to consolidating an otherwise frag-
mented industry. Acquisitions continue to be an important part
of our strategy. Additionally, we have strengthened our focus
on achieving organic growth supporting our aim to increase our
market share.
Capital structure
Group Management continuously monitors whether the capital
structure is in line with the targets, and excess capital is distrib-
uted to shareholders through share buybacks and dividends.
Adjustments to the capital structure are usually announced in
connection with the release of quarterly financial reports and
are made primarily through share buybacks.
Dividend policy
DSV aims to ensure an annual dividend pay-out ratio of approxi-
mately 10-15% of our net profit.
Proposed dividend for 2023 amounts to DKK 7.00 per share
(2022: DKK 6.50 per share). The proposed dividend for 2023
is equivalent to 12.4% of net profit.
Capital structure
The aim of DSV’s target capital structure is to ensure:
• sufficient financial flexibility to meet our strategic
objectives; and
• a robust financial structure to maximise the return
for our shareholders.
Our target financial gearing ratio is below 2.0x EBITDA before
special items. The ratio may exceed this level following signifi-
cant acquisitions.
Capital allocation policy
Our prioritisation of allocation of the free cash flow remains
as follows:
1. We repay net interest-bearing debt in periods when
the financial gearing ratio is above target range.
2. We make value-adding investments in the form of
acquisitions or development of the existing business.
3. Our distribution to the shareholders takes place
through share buybacks and dividends.
Capital structure
and allo cation
ROIC before tax
120,000
100,000
80,000
60,000
40,000
20,000
0
(DKKm)
20232019 2020 2021 2022
ROIC before tax incl. goodwill and customer relationships ■
Goodwill and customer relationships ■
Invested capital excl. goodwill and customer relationships ■
30
25
20
15
10
5
0
(%)
Distribution of capital (DKKm)
Share buyback ■
Dividends ■
30,000
25,000
20,000
15,000
10,000
5,000
0
20232019 2020 2021 2022
,
Total
,
,
Total
,
,
Total
,
,
,
Total
,
Total
,
, ,
18 DSV Annual Report 2023 Strategy and financial targets
About NEOM
The development of the NEOM region
is part of Saudi Arabia’s 2030 vision
and will be one of the world’s largest
construction projects over the next
decades. Located in north-western
Saudi Arabia and covering 26,000
square kilometres, NEOM comprises
several major development projects
planned until 2055.
These include The Line, an innovative
new city; Oxagon, a port and indus-
trial area; Trojena, a mountain resort
set to host the Asian Winter Games
in 2029 and Sindalah, an exclusive
ocean resort.
NEOM is planned to be the home of 9
million people. The ambitious project
will be based on new technologies and
targets carbon neutrality. Taking an
innovative approach to both con-
struction and end state logistics and
with the aim to create one consolidat-
ed supply chain to support the pro-
jects, NEOM Company has partnered
up with DSV.
For more information on the NEOM
projects, please visit www.neom.com
Planned NEOM joint venture
In October 2023, NEOM Company and DSV announced an exclusive logistics joint
venture to provide logistics services for the projects in the NEOM region. We expect
that the joint venture will start operations in the second quarter of 2024.
About the partnership
The planned joint venture will provide end-to-end sup-
ply chain management, development and investments
in transport and logistics assets and infrastructure as
well as transport and delivery of goods and materials to
and within NEOM.
The activities will include construction logistics, end
state logistics, development of logistics properties,
management and back-office services, based on DSV’s
infrastructure. NEOM envisions unparalleled demand for
construction logistics through to 2031, with sustained
growth in non-construction logistics thereafter.
Besides the logistics activities within the joint venture,
the partnership is expected to create attractive growth
opportunities for the global DSV network.
NEOM will hold 51% of the joint venture with DSV
holding the remaining 49%.
Expected financial impact
DSV’s maximum funding commitment amounts to USD
2.45 billion of the total commitment of the joint ven-
ture partners of USD 5 billion until 31 December 2031.
The joint venture will gradually ramp up over the next
years to match the activity in NEOM, and the timing of
investments and financial results thus depend on the
progress of the different projects.
The funding will come from equity (share capital, share -
holder loans), external funding (incl. leasing) and retained
earnings in the joint venture.
The return on invested capital (ROIC) is expected to be in
line with our existing target. This return includes DSV’s
share of the profit of the joint venture and the expected
growth opportunities for the DSV network.
The tax rate for the joint venture is expected to be
approximately 11%.
Governance setup
At DSV, we believe that human rights are fundamental
and should be protected at all times. Our commitment
to human rights is integrated in our activities across the
globe, and the planned joint venture is no exception.
The joint venture is expected to create more than
20,000 job opportunities and will be governed based
on DSV’s policies and values. This includes our Code of
Conduct, Supplier Code of Conduct and Human Rights
Policy. DSV will be responsible for the daily operations
and appoint the managing director of the joint venture.
DSV has been operating in Saudi Arabia for 20 years,
and our existing global reporting and internal control
setup will also be applied in the joint venture. Further-
more, internal and external audits will be conducted
throughout the duration of the project.
Timeline
Completion of the joint venture is pending incorporation
of the entity and issuance of relevant public operat-
ing licenses in Saudi Arabia, which are expected to be
obtained in the second quarter of 2024.
In 2031 and every five years hereafter, the parties
will update and agree on the business plan for the joint
venture. In 2055, the exclusivity of the joint venture
expires, but the partnership is expected to continue.
19 DSV Annual Report 2023
Michael Ebbe
CFO
Financial review
Statement of profit or loss (DKKm) 2023 2022 Growth*
Revenue 150,785 235,665 (34.1%)
Direct costs 106,967 183,516
Gross profit 43,818 52,149 (13.4%)
Gross margin 29.1% 22.1%
Other external costs 4,838 5,559
Sta costs 15,983 16,315
Operating profit before amortisation and
depreciation (EBITDA) before special items
22,997 30,275
Amortisation and depreciation 5,274 5,071
Operating profit (EBIT) before special items 17,723 25,204 (27.4%)
Conversion ratio 40.4% 48.3%
Special items, costs - 1,117
Net financial expenses 1,233 866
Profit before tax 16,490 23,221
Tax on profit for the year 4,083 5,550
Profit for the year 12,407 17,671
The DSV Group achieved solid financial results for 2023 in a gradually
normalising market with low volumes. Gross profit came to DKK 43,818
million and EBIT before special items was DKK 17,723 million. This was
in line with the expected level of DKK 17,500-18,500 million.
A flexible business model
The DSV Group achieved solid financial results in 2023 in a
competitive market characterised by low freight volumes.
Compared to the extraordinary conditions in 2022, we saw a
gradual normalisation of the market in 2023, and as expected,
the financial results for 2023 did not match the record earn-
ings of the previous year.
In 2023, the global air and sea freight markets were character-
ised by low volumes, as a result of the broader macroeconomic
slowdown, shift in consumer behaviour (from goods to services)
and reduction of inventory levels. In combination with additional
capacity, this led to significantly reduced freight rates compared
to 2022. The road and contract logistics markets were more
resilient during 2023 but were also impacted by the general
economic environment and destocking.
The Group’s results reflect our flexible business model and not
least our dedicated employees, who continued to deliver good
customer service and efficiently manage our capacity.
Adjusted free cash flow came to DKK 11,471 million, and in
line with our capital allocation policy, we allocated DKK 15,421
million to shareholders through share buyback and dividend.
The performance of each of our divisions is further described
in the reviews on pages 25-31.
* Growth in constant currencies.
20 DSV Annual Report 2023
100
80
60
40
20
0
60,000
50,000
40,000
30,000
20,000
10,000
0
(DKKm)
(DKKm)
(DKK)
(%)
(%)
60
50
40
30
20
10
0
30,000
25,000
20,000
15,000
10,000
5,000
0
2022
2022
2022
2021
2021
2021
2020
2020
2020
2019
2019
2019
2023
2023
2023
18
15
12
9
6
3
0
Operating margin
EBIT
Results
Revenue
Revenue was down 34.1% in 2023. The Air & Sea division's revenue de-
clined by 44.9% compared to previous year, impacted by the reduced
freight rates and lower volumes. For both air and sea freight, the volume
declines were most significant at the start of the year, and the trend then
improved for sea volumes in the second half of the year, while air volume
growth remained negative.
Revenue (DKKm) 2023 2022 Growth*
Air & Sea 92,972 174,431 (44.9%)
Road 38,155 41,507 (6.4%)
Solutions 23,140 24,409 (2.4%)
Non-allocated items and
eliminations (3,482) (4,682)
Total 150,785 235,665 (34.1%)
* Growth in constant currencies.
The Road division saw a decline in revenue of 6.4%, driven by both lower
volumes and lower freight rates, especially in the second half of the year.
Solutions reported a 2.4% decline in revenue, mainly owing to lower
activity levels in the first half of the year, which then picked up in the
second half of 2023.
Gross profit
Gross profit was down 13.4% in 2023. The decline for Air & Sea was
driven by lower freight volumes and continued normalisation of gross
profit yields, compared to the record-high levels achieved in 2022. De-
spite the decline, the yield level is still considered satisfactory and reflects
the division's focus on more specialised services with a high degree of
value-added services.
Gross profit (DKKm) 2023 2022 Growth*
Air & Sea 25,970 34,624 (22.4%)
Road 7,860 7,911 1.1%
Solutions 9,510 9,318 5.0%
Non-allocated items and
eliminations 478 296
Total 43,818 52,149 (13.4%)
* Growth in constant currencies.
In a competitive market, Road delivered gross profit levels similar to last
year, while Solutions saw an increase of 5.0% in gross profit for the year,
driven by the division's continued focus on consolidation in efficient
multi-client warehouses and increased automation.
In 2023, gross profit declined across most regions, most significantly in
APAC due to declining export volumes and lower yields. The Middle East,
on the other hand, stood out as the only region across the network to
achieve gross profit growth.
Gross margin for the Group was 29.1%, compared to 22.1% last year. All
divisions reported higher gross margin, most significantly the Air & Sea
division. This was mainly due to the substantial decline in air and sea
freight rates, leading to lower pass-through element of revenue, and
furthemore the gross margin was supported by high yield levels.
EBIT before special items
For the Group, EBIT before special items decreased by 27.4%, which was
mainly due to lower gross profit in Air & Sea. Also on EBIT level, the APAC
region reported the highest decline compared to 2022, while the Middle
East delivered EBIT growth.
Gross profit
EBIT before special items
Diluted adjusted earnings per share of DKK 1
Conversion ratio
Gross profit
21 DSV Annual Report 2023 Financial and non-financial performance
EBIT before special items (DKKm) 2022 Growth*2023
Air & Sea 13,363 20,658 (33.1%)
Road 2,009 2,040 (0.1%)
Solutions 2,355 2,701 (10.7%)
Non-allocated items and
eliminations (4) (195)
Total 17,723 25,204 (27.4%)
* Growth in constant currencies.
The conversion ratio was 40.4%, compared to the extraordinary level of
48.3% last year. In line with our flexible business model, we have imple-
mented cost-saving initiatives to adjust our capacity, mainly in the Air &
Sea division. These initiatives were partly offset by inflation.
Total staff costs (excluding hourly workers) were DKK 15,983 million
in 2023 (2022: DKK 16,315 million). Staff costs decreased despite
inflationary pressure due to cost-saving initiatives.
Other external costs totalled DKK 4,838 million in 2023 (2022: DKK
5,559 million). The cost decreased due to cost-saving initiatives and
strong cost discipline.
Depreciations totalled DKK 5,274 million in 2023 (2022: DKK 5,071
million). The increase was due to addition of warehouse capacity in the
Solutions division.
Special items totalled DKK 0 million in 2023 (2022: DKK 1,117 million).
The costs in 2022 related to the GIL integration.
Net financial expenses totalled DKK 1,233 million in 2023 (2022: DKK
866 million). The higher net financial costs compared to last year mainly
related to the increase in FX adjustment losses (on intercompany balances
and devaluation of currencies) and an increase in lease liabilities.
Net financial expenses (DKKm) 2023 2022
Interest on lease liabilities 851 727
Other interest cost, net 178 396
Interest on pensions 47 19
Currency translation, net 157 (276)
Total 1,233 866
The effective tax rate was 24.8% in 2023, compared to 23.9% in 2022.
The increase in the effective tax rate was primarily due to higher with-
holding taxes on upstreaming of dividends from subsidiaries and the
effect of interest limitation.
Profit for the year
Profit for the year was DKK 12,407 million, compared to DKK 17,671
million for 2022. The decline was mainly due to the lower EBIT for the
period. This was partly offset by the absence of special items in 2023.
Diluted adjusted earnings per share
Diluted adjusted earnings per share decreased by 27.9% to DKK 58.7 in
2023 (2022: DKK 81.4). The decline in earnings for 2023 was partly
offset by a 6.5% decrease in the number of outstanding shares following
the Group’s share buyback programmes.
Cash flow statement
Cash flow from operating activities in 2023 fell by 38.7% to DKK 16,458
million. The decline was primarily attributable to lower EBITDA.
On 31 December 2023, NWC was DKK 4,742 million, compared to
DKK 5,116 million at the end of 2022. The improvement in NWC can
be attributed to a combination of reduced activity and lower average
freight rates.
(DKKm) 2023 2022
Cash flow from operating activities 16,458 26,846
Cash flow from investing activities (2,030) (966)
Free cash flow 14,428 25,880
Cash flow from financing activities (17,574) (24,245)
Cash flow for the period (3,146) 1,635
Free cash flow 14,428 25,880
Net acquisition of subsidiaries and activities 685 -
Special items 263 664
Repayment of lease liabilities (3,905) (3,734)
Adjusted free cash flow 11,471 22,810
Relative to full-year revenue, funds tied up in NWC at year-end were at
3.2% compared to 2.2% in 2022.
Cash flow from investing activities was an outflow of DKK 2,030 million
in 2023, compared to an outflow of DKK 966 million in 2022. Investment
cash flow was impacted by the acquisition of two US-based transport and
logistics companies and by investments in warehouse equipment and
automation technology.
Adjusted free cash flow (adjusted for acquisitions, special items and IFRS
16) was DKK 11,471 million, compared to DKK 22,810 million last year.
The decline was primarily attributable to lower EBITDA.
Cash flow from financing activities was negative by DKK 17,574 million
in 2023 (2022: negative DKK 24,245 million). The development was
primarily related to share buyback and dividend.
22 DSV Annual Report 2023 Financial and non-financial performance
In line with our capital allocation policy, we allocated DKK 15,421 million
to shareholders via share buybacks and dividend in 2023. At year end, the
financial gearing ratio was 1.5x EBITDA (2022: 1.0x).
Capital structure
On 31 December 2023, DSV shareholders’ share of equity was DKK
68,703 million (2022: DKK 71,519 million). The decrease was mainly
driven by allocations to shareholders and currency translation adjustments,
offset by profit for the period.
The share capital was nominally DKK 219 million by the end of 2023
(2022: 219 million). The share capital is divided into 219 million shares
of DKK 1 each. Each share has one vote.
The solvency ratio excluding non-controlling interests was 46.7% on
31 December 2023, compared to 45.0% on 31 December 2022.
Net interest-bearing debt (including IFRS 16 lease liabilities) was DKK
34,583 million at the end of 2023 (2022: DKK 29,870 million). The
increase can mainly be attributed to investment activities and an increase
in leasing liabilities.
Weighted average duration of corporate bonds, committed loans and
credit facilities was 7.3 years on 31 December 2023, against 8.3 years
on 31 December 2022.
Invested capital and ROIC
The invested capital including goodwill and customer relationships
amounted to DKK 99,973 million on 31 December 2023 (2022:
DKK 99,540 million).
Due to lower earnings compared to previous year, return on invested
capital (including goodwill and customer relationships) was 17.8% for
2023 (2022: 25.1%). Excluding goodwill and customer relationships,
return on invested capital was 76.3% for 2023 (2022: 105.1%).
23 DSV Annual Report 2023 Financial and non-financial performance
The main driver was reduced freight demand across our air, sea
and land transport modes and a shift from air to sea transport.
Compared to our 2019 baseline, our scope 3 target boundary
emissions have declined by 41.7%. As such, our 2030 target
has been achieved. We do, however, expect freight demand
to pick up again and increase towards 2030.
Continuing with our decarbonisation efforts is necessary to
ensure we reach our carbon reduction targets in 2030 and
2050. Calculated carbon intensity was affected by the start
of implementing a new industry calculation standard (ISO
14083). Carbon intensity for airfreight fell by 9.6% in 2023,
while carbon intensity in sea-freight increased by 6.1%.
Carbon intensity for land transport increased by 5.5%.
A business powered by people
Employee turnover rate adjusted for synergies in 2023 was
20.7% compared to 22.1% in 2022. We consider this to be
on a par with the level within our industry. Our health and
safety indicators remained relatively stable in 2023 compared
to 2022. Lost Time Injury Frequency Rate (LTIFR) increased
slightly to 3.3 compared to the result in 2022 of 2.8. The
result is below our 2023 target of max 4.5 LTIFR.
Operating with integrity
We conduct mandatory training on our Code of Conduct, and
in 2023, we achieved a 100% completion rate of all employees
assigned to the training. We hold our suppliers to the same
standards as we set for ourselves via our Supplier Code of
Conduct. In 2023, we conducted more than 750 supplier audits.
In 2023, we continued our progress towards meeting our environ-
ment, social and governance targets, thus driving positive change
across our operations.
Sustainability
progress
Reduction of scopes 1-2 in
2023 compared to 2022
.%
.%
Reduction of our scope 3 SBTi
target boundary emissions in
2023 compared to 2022
.%
%
Employee turnover rate adjusted
for synergies in 2023 compared
to 22.1% in 2022
Completion rate of all
employees assigned to the
Code of Conduct training
Reducing our environmental impact
In 2023, we saw a reduction in carbon emissions across all scopes. Our direct emissions in scopes 1-2
fell by 6.3% compared to 2022. The main drivers were a significant drop in scope 2 emissions caused
by reductions in energy consumption and higher share of renewable electricity.
Compared to our 2019 baseline, scope 1 and 2 emissions have increased by 1.0%. Our scope 3 target
boundary emissions significantly decreased by 24.2% in 2023 compared to 2022.
20222023
CO
2
e scope 1, 2 and 3 (SBTi target boundary) ('000 tonnes)
Total CO
2
e scope 1 & 2 emissions 413 441
Total CO
2
e scope 3 emissions (SBTi target boundary) 11,734 15,489
Carbon intensity (gram CO
2
e per tonne transported one km)
CO
2
e (g/tonne-km) – Air transport 627.6 694.4
CO
2
e (g/tonne-km) – Sea transport 7.0 6.6
CO
2
e (g/tonne-km) – Land transport 94.3 89.4
Social data
Lost Time Injury Frequency Rate (LTIFR) (per million working hours) 3.3 2.8
Employee turnover ratio (adjusted for synergies) (%) 20.7 22.1
24 DSV Annual Report 2023
Condensed statement of profit or loss
and key figures
(DKKm) 2022 Growth*2023
Revenue 92,972 174,431 (44.9%)
Direct costs 67,002 139,807
Gross profit 25,970 34,624 (22.4%)
Other external costs 3,574 4,244
Sta costs 7,877 8,471
Operating profit before amortisation and
depreciation (EBITDA) before special items
14,519 21,909
Amortisation and depreciation 1,156 1,251
Operating profit (EBIT) before special items 13,363 20,658 (33.1%)
Gross margin (%) 27.9 19.8
Conversion ratio (%) 51.5 59.7
Operating margin (%) 14.4 11.8
Number of full-time employees at year end 21,385 23,032
Total invested capital 63,176 68,813
Net working capital 1,194 5,849
ROIC before tax (%) 20.2 29.1
In a market characterised by reduced volumes and lower freight rates,
the division saw a decrease of 22.4% in gross profit and 33.1% in EBIT
before special items (both in constant currencies). The decline was in
line with expectations, and both profit margins and the absolute level
of earnings remained strong.
Air & Sea
* Growth in constant currencies.
Market situation
Navigating volatile markets was – once again – a major theme
in 2023. Demand for both air and sea freight continued to be
impacted by the macroeconomic slowdown and global inven-
tory correction. From the second half of 2022 through most
of 2023, supply chain congestion eased up and consumer
spending made a shift from material goods towards services.
Some companies found themselves with too much invento-
ry, and an ongoing correction lowered global trade and the
demand for transportation.
The negative volume trend was most significant for air freight,
which generally is a more volatile market, whereas the demand
for sea freight was more resilient. The volume trend improved
in the latter half of 2023; however, this improvement was
primarily a reflection of weak comparative figures from 2022
rather than a real underlying improvement in demand.
The demand for air freight was impacted by improved reliability
and lower rates in the sea freight market, which made sea
freight a more competitive alternative. Air freight capacity grad-
ually increased with the continued return of belly-space capac-
ity in passenger planes, which together with the soft demand
led to a decline in air freight rates in the first nine months of
the year. In the last three months of 2023, air rates out of Asia
increased, due to growth in cross-border e-commerce.
A number of new vessels ordered during the pandemic started
to enter the sea freight market during 2023. The entrance
of newbuild vessels resulted in increased available capacity,
which further widened the gap between supply and demand.
In the coming year, more vessels will be delivered. Sea freight
rates declined or remained at low levels during most of 2023;
however, disruption in the Red Sea led to a sudden increase at
the end of the year. A reminder that global supply chains are
vulnerable, and we as freight forwarders constantly have to
navigate and adjust to the changes in the market.
The Air & Sea division operates a global
network specialising in transportation
of cargo by air and sea. The division
offers both conventional freight for-
warding services and tailored project
cargo solutions.
Gross profit
DKK 25,970 million
-.%
-.%
Operating profit
DKK 13,363 million
%
EMEA
%
APAC
%
AMERICAS
Geographic segmentation
based on gross profit
25 DSV Annual Report 2023
For 2023, DSV Air & Sea reported air freight volume decline of 16.2%,
and the division’s sea freight volume declined 5.5%. While our perfor-
mance on sea freight was close to market level, we estimate that our
performance was below market for air freight. This can partly be attribut-
ed to our low exposure to the low-margin perishables market, which was
one of the only sectors with volume growth in the air market in 2023.
Air freight (DKKm) 2023 2022
Revenue 50,604 90,591
Direct costs 37,184 71,988
Gross profit 13,420 18,603
Gross margin (%) 26.5 20.5
Volume (tonnes)* 1,305,827 1,557,972
Gross profit per unit (DKK) 10,277 11,941
Sea freight (DKKm)
Revenue 42,368 83,840
Direct costs 29,818 67,819
Gross profit 12,550 16,021
Gross margin (%) 29.6 19.1
Volume (TEUs)* 2,519,295 2,665,147
Gross profit per unit (DKK) 4,982 6,011
* Volume is defined as the quantity of export cargo processed within the DSV
network. Sea volume is measured in TEUs (twenty-foot equivalent units),
while air volume is determined by chargeable weight, quantified in tonnes
.
Strategic and operational highlights
Given the challenging market conditions, this year we focused on adapt-
ing to an increasingly competitive market with lower rates. While we saw
declining TEU and tonnage, the number of shipments was more stable
during 2023. This reflects smaller average shipments size and that we
have grown in areas like LCL (less-than-container load). Our focus was on
maintaining an efficient operation and creating value through our quality
services. Cost inflation was more than offset by productivity improve-
ments and cost control measures.
Our acquisitions of two US-based transport and logistics companies, S&M
Moving Systems West and Global Diversity Logistics, have strengthened
our capabilities and offering within the semiconductor industry and also
support DSV’s Phoenix-Mesa Gateway operations, growing cross-border
services to Latin America.
The Mesa Gateway serves as our newest route into Latin America within
our air charter network. This network provides tailor-made air freight
solutions to customers on specific routes. We continue to operate the
network with a focus on flexibility enabling us to scale capacity as
demand changes.
We continued to develop our LCL product in sea freight, focusing on
increasing consolidation in our own terminals. This ensures a higher ser-
vice level towards our customers and higher profitability per container.
In 2023, we continued to develop our digitalisation efforts, focusing
on improving digital customer integrations and booking data quality.
The improved data quality provides better and faster supply chain
visi bility and increases our productivity.
Results
DSV Air & Sea revenue was DKK 92,972 million in 2023 (2022: DKK
174,431 million), down 44.9% in constant currencies. The development
in revenue was driven by the decline in volumes and lower freight rates.
Gross profit came to DKK 25,970 million for 2023 (2022: DKK 34,624 mil-
lion), a decrease of 22.4%. Besides the lower volumes, the decline in gross
profit originates from lower gross profit yields compared to the record-high
levels last year. In a competitive market, the division has maintained its focus
on pricing discipline and high-margin business. Furthermore, in line with our
procurement strategy, the division continued to balance commitments
towards customers with our capacity agreements with carriers.
The division’s gross margin was 27.9% for 2023 (2022: 19.8%). The
development was mainly due to the decline in freight rates, which led to
lower pass-through revenue compared to last year.
EBIT before special items was DKK 13,363 million (2022: DKK 20,658
million), a decline of 33.1% in constant currencies. The decline in EBIT
before special items can be attributed to the reduction in gross profit,
which to some extent has been offset by a lower cost base. Since Q3
2022, several cost reduction initiatives have been planned and imple-
mented leading to a reduction of staff costs and other external costs.
The conversion ratio came to 51.5%, compared to 59.7% last year.
The conversion ratio was negatively affected by lower gross profit yields
compared to last year, this was partly offset by cost-saving initiatives.
Net working capital was DKK 1,194 million at the end of the
year, compared to DKK 5,849 million at year-end 2022. The significant
re duction was due to lower revenue and an improved NWC process.
In 2023, return on invested capital was 20.2%, compared to 29.1% in
2022. The decrease was driven by lower earnings compared to last year.
26 DSV Annual Report 2023 Financial and non-financial performance
20
16
12
8
4
0
Gross profit
Conversion ratio
Operating margin
EBIT
(DKKm) (DKKm) (DKKm)
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
25,000
20,000
15,000
10,000
5,000
0
(%)(%)
2022 2022 20222021 2021 2021
2020
2020 2020
2019
2019 2019
80
70
60
50
40
30
20
10
0
2023 2023 2023
Focus areas for 2024
We expect that transport markets will return to growth in 2024, but mac-
roeconomic and geopolitical uncertainty remains high. Over the years, we
have built a strong global market position, and our target of gaining market
share across geographies remains unchanged.
Our sustainability efforts will continue to be highly relevant during 2024,
especially around carbon footprint transparency and supply chain optimi-
sation. Through our Green Logistics service offerings, we are making sure
that our customers have the option to choose lower-emission transports.
As a new service, we have introduced carbon emission data from each
DSV transport directly on customer invoices. In our interactions with car-
riers, sustainability will also play a larger role, as more efficient solutions
and equipment become available.
In recent years, we have seen changes in our customer mix towards more
large customers, and we will strengthen our focus and value proposition
towards this segment. We expand our centres of excellence setup with
needed industry specific capabilities, e.g., within automotive, industrials,
fashion/retail, healthcare and technology. In 2023, these efforts led to
growth within the specialised customer segments; oil & gas, semiconduc-
tor and aerospace & defence. In addition to our control tower setup, we
offer tailored solutions and proactively address topics like supply chain
optimisation and emission reduction.
As volatility and disruption are expected to continue across global supply
chains, we will do our best to navigate the markets, adjust capacity and
protect our margins while helping our customers to keep their supply
chains flowing.
Revenue Gross profit EBIT before special items
27 DSV Annual Report 2023 Financial and non-financial performance
For 2023, the Road division reported a 1.1% increase in gross
profit and EBIT before special items on level with last year. The
division delivered good operational results in a soft market with
declining activity.
The Road division is among the market
leaders in Europe and furthermore has
operations in North America, South
Africa and in the Middle East. The
division offers full load, part load and
groupage services through a network
of more than 250 terminals.
Gross profit
DKK 7,860 million
+.%
-.%
%
%
Operating profit
DKK 2,009 million
EMEA
AMERICAS
Road
Condensed statement of profit or loss
and key figures
(DKKm) 2022 Growth*2023
Revenue 38,155 41,507 (6.4%)
Direct costs 30,295 33,596
Gross profit 7,860 7,911 1.1%
Other external costs 1,428 1,425
Sta costs 3,574 3,543
Operating profit before amortisation and
depreciation (EBITDA) before special items 2,858 2,943
Amortisation and depreciation 849 903
Operating profit (EBIT) before special items 2,009 2,040 (0.1%)
Gross margin (%) 20.6 19.1
Conversion ratio (%) 25.6 25.8
Operating margin (%) 5.3 4.9
Number of full-time employees at year end 16,235 16,701
Total invested capital 12,994 10,690
Net working capital 1,503 (586)
ROIC before tax (%) 17.0 20.1
* Growth in constant currencies.
Market situation
We estimate that volumes on the European road freight market
decreased in 2023 compared to 2022. The decline accelerated
in the second half of the year, due to lower demand and contin-
ued destocking across most industries.
While the road market was still characterised by tight capacity
and lack of truck drivers in the beginning of 2023, there were
signs of overcapacity in the second half of the year. This impact-
ed the overall pricing levels and increased competition. Lower
fuel prices also contributed to declining freight rates.
We estimate that DSV Road grew its share across most markets
as a result of our strong network and market position, not least
in the less-than-truckload market.
Strategic and operational highlights
In recent years, the lack of truck drivers and overall capacity has
been a major theme for the road freight market. The war in
Ukraine and EU’s Mobility Package have also reduced capacity.
This changed during 2023, as the general economic slowdown
in Europe had an impact on demand for transportation. While
we do not expect this to persist long term, we saw declining
rates and increasingly tough competition in 2023.
Our effective procurement setup and strong network meant
that we were able to offer high service levels in combination
with competitive prices. We believe that this was an important
factor behind our market share gains in 2023.
In 2023, we continued developing our European groupage net-
work as part of our Road Way Forward programme. We also con-
tinued to enhance our control tower setup, which enables us to
offer our customers one point of contact to handle commercial,
operational and financial inquiries. In 2023, we strengthened our
semiconductor capabilities in the US with the acquisitions of
S&M Moving Systems West and Global Diversity Logistics.
Geographic segmentation
based on gross profit
28 DSV Annual Report 2023
10
8
6
4
2
0
Gross profit
Conversion ratio
Operating margin
EBIT
(DKKm)
(DKKm)
(DKKm)
48,000
40,000
32,000
24,000
16,000
8,000
0
10,000
8,000
6,000
4,000
2,000
0
2,500
2,000
1,500
1,000
500
0
(%)
(%)
2022
2022
2022
2021
2021
2021
2020
2020
2020
2019
2019
2019
50
40
30
20
10
0
2023
2023
2023
The other part of the Road Way Forward programme is the development
of a new transport management system (TMS). While several parts of the
TMS are already operational (for instance our quote tool, booking and in-
voicing solutions), we have in 2023 put the development of other elements
on hold. Instead, we are redefining our requirements and taking a new ap-
proach to achieve an effective IT setup for DSV Road. The change will cause
a delay, but the programme continues and the objectives are unchanged.
We have continued to help our customers optimise their supply chains and
reduce carbon emissions. Promoting our Green Logistics services is one
element in this, and we continue to see good interest. In 2023, we formal-
ised the divisional roadmaps for our path towards net zero. For DSV Road,
this involves strategic partnerships with truck manufacturers and testing
of technologies and equipment. These include electric trailers, which have
the potential to reduce CO
2
emissions from road transport by up to 40%.
Results
DSV Road revenue was DKK 38,155 million in 2023 (2022: DKK 41,507
million) – a decline of 6.4%. This was mainly driven by a slight decline in
activity and declining freight rates. Based on our flexible, asset-light busi-
ness model, we have been able to adjust our capacity accordingly.
More than 85% of the division’s revenue is generated in Europe, and we
saw good performance under challenging market conditions across most
countries in this region, especially on international shipments. In 2023,
the division had good traction with Automotive and Pharma customers.
DSV Road also performed well in Americas and delivered growth in the
number of shipments in a soft market. We estimate that the division
performed better than the general market.
Gross profit was DKK 7,860 million in 2023 (2022: DKK 7,911 million),
an annual increase of 1.1% in constant currencies. The division’s gross
margin was 20.6% for 2023, compared to 19.1% for 2022. Overcapacity
and lower fuel prices led to lower direct freight cost for the division,
which had a positive impact on the gross margin. The focus on European
groupage operations, which carry a higher gross margin than full-load and
domestic shipments, also had a positive impact on the gross margin.
EBIT before special items was DKK 2,009 million in 2023, close to last
year’s level of DKK 2,040 million. The conversion ratio came to 25.6% for
2023, also on level with 2022. In an environment with inflationary pres-
sure on the cost base, the division has maintained focus on productivity
and cost management.
Net working capital was DKK 1,503 million at the end of the year, against
a negative DKK 586 million at year-end 2022. This development is mainly
a result of an increase in funds tied up in property projects. Return on
invested capital was 17.0% in 2023, compared to 20.1% for 2022. This
was driven by higher average invested capital compared to 2022, mainly
due to the increase in NWC.
Focus areas in 2024
We expect a competitive market in 2024, with activity levels still impact-
ed by the macroeconomic situation. We continue to monitor the activity
levels and adjust capacity when needed. Our target of gaining market
share across geographies remains unchanged.
Across our network, we continue developing our services to support the
needs of our customers, and in 2024 we will scale our control tower set-
up to increase visibility in our customers’ supply chains. Another strategic
focus area is our Road Way Forward programme, where we continue to
develop our European groupage services by standardising processes and
improving our geographical network coverage as well as our first/last mile
distribution services.
We will also continue to develop and promote our Green Logistics servic-
es. To increase transparency of the environmental impact of our services,
we will implement CO
2
data on our customer invoices.
Digitalisation remains an important focus area, and we continue to work
on standardising workflows and improving data quality on digital bookings
to improve customer service quality and boost productivity. In 2024, we
will redefine our requirements to a new transport management system as
part of the ongoing Road Way Forward programme, maintaining our am-
bition of achieving an effective IT setup for the Road division.
Revenue
Gross profit
EBIT before special items
29 DSV Annual Report 2023 Financial and non-financial performance
In a market impacted by lower global trade, the division achieved 5.0%
increase in gross profit and 10.7% decrease in EBIT before special items
(both in constant currencies). The division continued the consolidation
into multi-client campuses and expanding its global footprint.
Solutions
* Growth in constant currencies.
Market situation
Throughout 2023, the contract logistics market was impacted
by the decline in global trade and a global inventory correction.
This led to lower inbound activity and lower inventory levels,
especially in the retail and industry sectors. We estimate the
market has decreased by low single digits in 2023 compared
to the previous year.
The activity levels were weaker in the first half of the year,
but stabilised during the second half of the year. For DSV, the
average utilisation of warehouses (and inventory levels) was
lower in 2023 compared to the previous year.
We estimate that Solutions took market share in all its major
markets during the year. This was driven by a strong service
offering and addition of new warehouse capacity.
Strategic and operational highlights
We continued executing our long-term strategy for consolida-
tion and developing multi-client warehouse campuses based
on roadmaps for each region. In 2023, we added more than
500,000 m
2
new warehouse space. Among other locations,
we opened facilities in Dallas, Madrid and Venlo and started
property projects in Shanghai, Mumbai and Singapore.
Our expansion also includes new capacity added to our Pharma
and Healthcare vertical. In 2023, we opened four new sites for
our customers in this segment. The new warehouses are certi-
fied in line with leading international standards, and the verti-
cal will remain a strategic focus area going forward.
Our acquisitions of two US-based transport and logistics com-
panies, S&M Moving Systems West and Global Diversity
Logistics, have strengthened our semiconductor capabilities
and support our growing cross-border operations between the
US and Latin America.
The Solutions division offers ware-
housing and logistics services globally
and controls more than 500 logistics
facilities. The service portfolio includes
freight management, customs clear-
ance, order management and e-com-
merce solutions.
Gross profit
DKK 9,510 million
+.%
-.%
%
%
%
Operating profit
DKK 2,355 million
EMEA
APAC
AMERICAS
Geographic segmentation
based on gross profit
Condensed statement of profit or loss
and key figures
(DKKm) 2022 Growth*2023
Revenue 23,140 24,409 (2.4%)
Direct costs 13,630 15,091
Gross profit 9,510 9,318 5.0%
Other external costs 1,782 1,759
Sta costs 2,418 2,254
Operating profit before amortisation and
depreciation (EBITDA) before special items 5,310 5,305
Amortisation and depreciation 2,955 2,604
Operating profit (EBIT) before special items 2,355 2,701 (10.7%)
Gross margin (%) 41.1 38.2
Conversion ratio (%) 24.8 29.0
Operating margin (%) 10.2 11.1
Number of full-time employees at year end 31,427 32,077
Total invested capital 25,196 23,364
Net working capital 2,407 1,624
ROIC before tax (%) 9.7 12.4
30 DSV Annual Report 2023
12
10
8
6
4
2
0
Gross profit
Conversion ratio
Operating margin
EBIT
(DKKm)
(DKKm)
(DKKm)
28,000
24,000
20,000
16,000
12,000
8,000
4,000
0
12,000
10,000
8,000
6,000
4,000
2,000
0
3,000
2,500
2,000
1,500
1,000
500
0
(%)
(%)
2022
2022
2022
2021
2021
2021
2020
2020
2020
2019
2019
2019
30
25
20
15
10
5
0
2023
2023
2023
For our e-commerce segment, we continued rolling out DSV Fulfillment
Factory with 8 out of 14 planned sites in operation. DSV Fulfillment Fac-
tory offers warehouse automation to all sizes of companies with multiple
distribution channels, both B2B and B2C.
We continue to focus on reducing our environmental footprint, and in
2023 we launched DSV Energy to facilitate our strategy to reduce emis-
sions from our energy consumption. DSV Energy is responsible for pro-
ducing renewable energy from large rooftop solar plants installed on our
facilities. The energy produced will first and foremost be used to cover
our own energy consumption at our facilities, reducing our environmental
impact. Excess power can in certain cases be sold externally.
Results
Solutions revenue was DKK 23,140 million in 2023 (2022: DKK 24,409
million), an annual decline of 2.4%. The Americas region achieved growth
in order lines, whereas EMEA and APAC recorded lower activity.
Gross profit was DKK 9,510 million in 2023 (2022: DKK 9,318 million)
– an annual growth of 5.0%. The division achieved a gross margin of
41.1%, compared to 38.2% last year. The strategy of consolidation into
larger and more efficient warehouses (campuses) and implementation of
automation have been key drivers in increasing the gross profit margin.
EBIT before special items was DKK 2,355 million (2022: DKK 2,701 mil-
lion), down 10.7% compared to 2022. This was a result of an extraordi-
narily strong first half of 2022 with high warehouse utilisation and activi-
ty levels. EBIT for the second half of the year was above the 2022 level
in constant currencies.
The conversion ratio was 24.8%, compared to 29.0% last year. The 2023
cost base was impacted by general cost inflation and new addition of
warehouses. Expansion of warehouse capacity led to the division operat-
ing with a slightly lower warehouse utilisation rate, which had a dilutive
effect on the conversion ratio.
Net working capital was DKK 2,407 million for 2023, compared to
DKK 1,624 million last year. The development was impacted by an
increase in funds tied up in property projects.
Return on invested capital came to 9.7%, compared to 12.4% last year.
Focus areas in 2024
Macroeconomic uncertainty and global destocking are impacting the con-
tract logistics market, and we maintain high focus on managing our cost
base to match demand levels. Despite the current environment, we still
expect the market to be characterised by growing demand for modern,
efficient and automated warehouses in the right locations.
We will continue to develop multi-client, automated warehouses with a
high focus on sustainability and energy efficiency. In 2024, we will pro-
mote our new Sustainable Warehousing concept, by which we help our
customers reduce their carbon footprint. Certified, energy efficient
warehouses, automation, remaker services, waste reduction and lean
processes are important features in this concept.
We aim to strengthen our footprint across existing countries and focus
particularly on growing our presence in Americas and APAC.
Our focus on creating a leading presence in the e-commerce space will
continue, and with our new Plug & Play solution we will also target small
and medium-sized enterprises. This solution enables a fast setup and easy
and cost-effective onboarding.
In 2024, we will begin the operation of our 190.000 m
2
warehouse facility
in Horsens, Denmark. Being one of the largest facilities in Europe, the new
warehouse will be equipped with a high degree of automation to match
the needs of customers in different industries.
Several industries are focusing on creating more robust supply chains. This
may lead to relocating production for our customers, more regional pro-
duction and assembly, higher inventory levels and more stock points or
distribution centres closer to the end consumer. We will work closely with
our customers to support their entire supply chain.
Revenue
Gross profit
EBIT before special items
31 DSV Annual Report 2023 Financial and non-financial performance
Risk governance structure
As a global transport and logistics company, we are exposed to a variety
of risks in our operations. Managing these risks is an integrated part of
our management practices. Our approach to managing risks involves
identifi cation, analysis and reporting. These processes serve as the foun
-
dation for continual risk assessments and the subsequent implementation
of relevant mitigating actions.
Our organisational structure facilitates swift escalation and timely re
-
sponse to issues that could significantly impact the Group's earnings,
financial status and strategic objectives.
Risk management
The Board of Directors is responsible for the Group’s risk management
strategy and oversees the overall framework for identifying and mitigat
-
ing risks, while the Audit Committee oversees compliance in the risk man-
agement process. The Executive Board is responsible for the day-to-day
risk management and drives continuous improvements.
Risk management processes
Our risk management process operates along two concurrent tracks: Ope-
rational risk management, which involves the continuous handling of identified
risks arising from our day-to-day operations, and strategic risk manage ment,
which addresses key risks and other mid- to long-term strategic risks.
Operational risk management
In addition to our general financial and operational reporting and con-
trolling, weekly reports on identified risks are submitted to the Executive
Board and senior management across the Group. These reports form the
basis for the Executive Board's daily risk management activities and serve
as input for the regular reporting to the Board of Directors and the Audit
Committee. The weekly reports are shared with lower management levels
to foster awareness and knowledge sharing.
Strategic risk management
The operational risk management process is followed up by annual high-
level strategic risk assessments focusing on identifying and mapping the
key risks facing the Group.
These assessments are based on input from the operational risk man-
agement process and extensive risk surveys involving a number of key
employees across functions, departments and regions. The key risks
identified are addressed by the Executive Board and assigned to risk
owners within the Group to make sure that relevant preventive measures
are implemented. In line with the established framework, the key risks
are reported to and addressed by the Audit Committee and the Board
of Directors.
Ongoing key risk reassessment Tracking
MitigationReportingRecordingAnalysis and
assessment
Identification
Dynamic risk adaptation
Identified risks
are analysed
to determine cause,
impact and likelihood
of the risk occurring.
Risks are identified
using the Group’s
risk reporting tools.
Identified risks
are recorded
and prioritised. Risk
owners are allo cated to
identified key risks.
Risks are reported
to the Board of
Directors, the Audit
Committee, the Execu-
tive Board and other
stakeholders in the
organisation.
Risks are monitored
and preventive measures
implemented in cooperation
with the aected business
units. When necessary, mitiga-
tion actions are initiated imme-
diately aer risk identification.
32 DSV Annual Report 2023 Corporate governance and shareholder information
Key risk assessment 2023
The latest assessment of the Group’s internal and external strategic risks
was carried out in Q4 2023. The analysis reaffirmed the existence of
seven overarching risk categories identified in previous years, which have
the potential to signifi cantly impact the Group's earnings, financial posi
-
tion and strategic objectives if they materialise. The results of the risk
analysis are depicted in the accompanying risk map and elaborated upon
in the subsequent sections. The key risks are listed in random order. The
indicated likelihood of occurrence and annual EBIT impact are based on
our best estimates, factoring in mitigation strategies. However, it is im
-
portant to note that the quantifications in the risk map entail a degree
of uncertainty.
Financial risks
While our daily operations involve various financial risks, they are not con-
sidered key risks. Our Group Finance departments actively monitor the
financial risks to ensure the efficacy of our hedging strategies. For further
details on our financial risks, please refer to Chapter 4 of the notes to the
financial statements.
The risk from climate changes
Climate changes impact our industry and we closely monitor the potential
impact, but currently do not consider this a key risk for the Group within
the time horizon covered by our Enterprise Risk Management framework.
As part of our environmental management system, we assess, monitor
and manage climate associated risks and opportunities. Long-term cli
-
mate-related financial risks and opportunities are identified, assessed and
managed guided by the recommendations of the Task Force on Climate
Related Financial Disclosures (TCFD). For more information about our 2023
climate risk assessment, see page 13 of our Sustainability Report 2023.
Likelihood
of occurrence
Moderate:
DKK 1,000 million
Estimated
annual EBIT
impact in case
of occurence
Almost
certain
Moderate LikelyUnlikelyRare
Key risk map
3
5
2
7
4
6
1
1
IT Security
System breakdowns
and cyberattacks
2
Macroeconomy
Recession and changes
to global supply chains
3
Employees
Retention and
attraction
4
Compliance
Increasing regulatory
complexity and new
risk areas
5
M&A
Acquisitions and
integration failure
6
Technology
Innovation and tech-
nological adaptation
7
Com mercial
Failure to execute
on organic growth
strategy
33 DSV Annual Report 2023 Corporate governance and shareholder information
Risk description Mitigation strategies Risk assessment
IT security:
System breakdowns and cyberattacks
IT systems, networks and related processes are crucial to our day-to-
day operations – from the delivery of our core logistics services to our
analytical capabilities and reporting to financial markets.
This makes us vulnerable to system breakdowns and IT criminal activi-
ties, such as malware, hacking and virus attacks.
IT failure not immediately solvable or an attempt to adversely impact
the confidentiality, integrity or availability of data for DSV, our cus-
tomers, suppliers or partners could pose a significant risk to financial or
operational systems.
Our IT strategy emphasises system consolidation, centralisation, and standardisation and
swift integration of acquired companies.
We prioritise IT security, cyber awareness training and disaster recovery training, while
ensuring robust continuity plans via regular audits and application recovery tests. Risk miti-
gation includes cloud solutions, patch management, multi-factor authentication and timely
security updates. Proactive cyber threat monitoring and thorough incident analysis drive
risk reduction.
Globally, our IT department oversees risk and infrastructure readiness. The Executive Board
and Audit Committee actively supervise cyber risks through regular meetings and reporting,
involving IT and compliance teams. This approach ensures resilience and quick adaptation to
evolving IT security challenges.
In 2023, our IT systems and infrastructure have maintained stable performance
and security standards. Focused IT security campaigns have been conducted.
These involved intensified training, mandatory e-learning, internal phishing drills
and the introduction of a new user-friendly reporting system for suspected
phishing.
Rigorous testing of Business Continuity and Disaster Recovery Plans confirmed
our resilience towards negative IT incident effects. In 2023, we achieved ISO
27001:2022 certification, emphasising our commitment to security.
Overall, our IT security risk slightly increased compared to last year. This devel-
opment is not related specifically to DSV – rather, it is our assessment that the
general risk from cybercrime is increasing.
Macroeconomy:
Recession and changes to global supply chains
Potential triggers like geopolitical conflicts, inflation, interest rate hikes,
market distortions and pandemics may affect our activities and finan-
cial results.
Protectionist measures by major economies could impact global trade.
This would to some degree be balanced by increased regional or do-
mestic activities and the sale of other logistics services.
Changes in industry and consumer patterns, like reduced global trade
and shorter supply chains due to environmental concerns or localising
production, are impacting our customers' supply chains and the de-
mand for logistics services.
Our flexible business model, stringent cost controls and efficiency measures ensure that
we optimise financial performance across all business areas and geographies. Operational
performance, financial results and cash flows are continuously monitored and necessary
adjustments to capacity made.
Our asset-light approach with external transport partners (carriers, hauliers) and leased
terminals, warehouses and offices provides flexibility and enables us to adapt to market
changes.
Our global network and diversified customer portfolio mean that we do not depend on the
development in single regions or industries. We continuously adapt our network to align
with changing global supply chains. We pursue areas with higher growth potential, and as
production expands into new markets and dual sourcing strategies emerge, we are ready to
support our customers.
In 2023, declining global transport volumes and yields affected our gross profit
and EBIT. The market normalisation was expected, and by utilising our flexible
business model we maintained strong financial performance. Economic forecasts
for 2024 by IMF and others suggest a “soft landing” with 2-3% annual GDP
growth and parallel growth in the transport market. However, the geopolitical
situation remains uncertain and may in several areas impact global supply chains
in 2024.
The NEOM joint venture in Saudi Arabia and our investments to support the
semiconductor industry in the US are examples of our strategy to support
growth in the coming years.
With continued focus on cost discipline, net working capital control, robust capi-
tal structure and our asset-light model, we are well prepared for the years ahead.
Even if several factors point to continued uncertainty, we estimate that the
potential financial impact from these risks are lower than last year.
34 DSV Annual Report 2023 Corporate governance and shareholder information
Risk description Mitigation strategies Risk assessment
Employees:
Retention and attraction
Our success relies on employees executing strategies and meeting
targets. Skilled technical, operational and managerial key employees
are essential for DSV.
Failing to retain or attract talent could significantly hamper business
performance, hindering strategic projects and goal achievement.
Fostering a positive, inclusive workplace makes DSV an attractive employer. This involves
respecting labour rights and ensuring safe and inspiring workplaces in modern offices,
terminals and warehouses.
Upholding our performance culture is crucial and empowers our employees to take
responsibility, make decisions and influence their everyday work life.
We continue to invest in initiatives to attract, retain and develop our workforce. These in-
clude promoting diversity and inclusion, career advancement pathways, our DSV Academy,
leadership training programmes, Young DSV initiatives and attractive remuneration.
Despite economic fluctuations and adjustments to our capacity in 2023, we
maintained stability in our workforce, successfully retaining key employees. Our
ongoing focus is on retaining talent and preparing for new workforce trends, and
we continue to invest in our training and development programmes.
There are fewer difficulties in recruiting and retaining essential personnel com-
pared to previous year. This assessment is impacted by the fact that the labour
market in the logistics industry has normalised slightly during 2023, due to lower
activity across the sector.
Compliance:
Increasing regulatory complexity
and new risk areas
As a result of our global operations, we are subject to extensive na-
tional and international regulatory requirements. In particular, regula-
tion relating to tax, customs, VAT, sustainability, data privacy and com-
petition law continue to increase in scope and complexity. Trade em-
bargoes impacting international transports are also changing and in-
creasing in magnitude.
In recent years, our network has grown in regions with an increased
risk of violation of labour rights. Our upcoming joint venture in NEOM
will make these factors even more relevant.
Cases of non-compliance may carry a long-term impact on our public
reputation and brand, which may in turn have a negative impact on our
relationships with customers and other stakeholders.
Additionally, non-compliance may lead to significant fines, claims and
other repercussions for the Group, members of our Management or
our employees.
At all levels of our organisation and in all countries we do business in, we are committed to
honest and ethical business practices and to complying with all relevant international and
local regulation. These fundamental principles are anchored with our Top Management and
are defined to safeguard the company and its employees. We believe this is the right way to
run a business.
DSV’s policies – e.g. our Code of Conduct, Supplier Code of Conduct and Human Rights
Policy – are enforced across all subsidiaries and followed up through internal controlling and
audits.
Our compliance framework is integrated into our business processes, containing clear
guidelines on how to identify compliance-related issues and how to act accordingly. In
addition, communicating and creating awareness of relevant issues is high on our agenda
and activated through regular news updates, global newsletters, webcasts and internal
conferences.
Significant compliance-related risks are monitored and managed at Group level in close
cooperation with our local business units.
In 2023, compliance challenges increased in various areas, e.g., sustainability
reporting, value chain adherence and minimum tax regulations.
Our compliance framework upholds ethical standards across our organisation,
and during the year, we have invested further in strengthening this setup.
The planned joint venture in NEOM will over time significantly increase our pres-
ence in Saudi Arabia and may eventually impact the risk assessment, especially
related to violation of human rights and labour rights. We have engaged with
NEOM Company, and the joint venture's compliance setup is based on DSV’s
standards and policies. DSV will appoint the managing director and will secure a
setup to handle daily operations as well as managing the operationally relevant
risks.
Despite the continued pressure, our assessment shows a lower potential impact
than the previous year. This is a testament to our resilient compliance setup,
and the continued commitment across our organisation.
35 DSV Annual Report 2023 Corporate governance and shareholder information
Risk description Mitigation strategies Risk assessment
M&A:
Acquisitions and integration failure
Strategic acquisitions are fundamental to our corporate strategy, which
we have upheld for years. An erroneous acquisition may incur signifi-
cant costs and divert resources from other potential candidates or
growth strategies. Acquisitions inherently carry integration risks, poten-
tially delaying cost synergies, strategic advantages or economies of scale.
DSV's robust M&A model ensures that acquisition targets align with our business model and
growth objectives. We conduct a comprehensive due diligence and develop integration
plans covering technology, processes, structure, culture and risk mitigation. Compliance
with global regulations and financial readiness underpin our approach.
Our many successful integrations, such as UTi (2016), Panalpina (2019), and GIL (2021),
underline our record.
In 2023, we have not completed any significant M&A transactions, and as we
have no larger ongoing integrations, it is our assessment that the M&A risk has
decreased.
Our M&A strategy remains intact, and larger acquisitions may change the risk
assessment in 2024.
Technology:
Innovation and technological adoption
As with most industries, freight forwarding undergoes continuous
technological developments, while also being exposed to gradual
changes in the competitive landscape, driven by both existing players
and new entrants to the market. Technologies like machine learning
and generative AI will accelerate this development in the coming years.
Currently, we see digitalisation and automation of processes (purchase
order management, quoting, booking, tracking, reporting and billing)
and the increasing focus on sustainability as the most significant devel-
opments impacting the freight forwarding industry.
Insufficient innovation and failure to keep up with, adapt to and utilise
new technological opportunities – as well as tackle the competitive chal-
lenges they bring – will lead to gradual loss of market share and earnings.
We are actively monitoring the logistics market, keeping up to date with our customers'
needs and anticipating the impact of emerging technologies. To foster innovation within our
organisation, we have established a Group Innovation team and we encourage our employ-
ees to generate and share ideas.
Strategic planning, innovation and continued development of our digital and physical infra-
structure are anchored with our Innovation Board, headed by our COO. Based on strategic
roadmaps for each business area, we focus on developing our service catalogues, systems
and operational procedures. This enables further digitalisation of our business and ensures
that we have a robust and competitive service offering that meets customer needs.
The aim of our strategy is to ensure that we can continue to benefit from our logistics ex-
pertise, scale and global network as a classic freight forwarder, while increasing our digital
competences and utilising the benefits of technology.
We believe that we are well positioned in our industry within these areas, and
that our current development and strategic plans will ensure that we will remain
so in the coming years.
In 2023, we have continued to invest in and develop our IT platforms across our
service offerings. We have established a dedicated AI team to explore opportuni-
ties and implement relevant applications. Furthermore, we have supported our
sustainability strategy and Green Logistics services with new technology.
Consequently, we assess that our technology risk has remained largely un-
changed from last year.
For additional descriptions of our current technology focus areas, please see
‘A responsive approach’ on page 16.
Commercial:
Failure to execute on organic growth strategy
DSV's acquisitions in recent years have boosted revenue and number
of employees. Our network and market position have become stronger,
but growth also comes with challenges. While we integrate acquired
companies and grow as a business, we must make sure to maintain a
strong commercial focus.
We must retain our focus on customer needs, know how to adapt to
market changes and develop our network and services to ensure that
our value proposition is clear. If we fail to deliver in these areas, our
ability to execute on our organic growth strategy will be impaired,
and this will influence our long-term financial results.
Managing our commercial risk is anchored with the Executive Board and the Group Execu-
tive Committee. In this forum, strategic initiatives are aligned and our commercial threats
and opportunities are explored. For each of our business areas, we define the overall strate-
gy and purpose, our value proposition and which customer segments we target.
Our strategic initiatives to support organic growth include strengthening our network ser-
vices (LCL, air charter network, European groupage network) and a revised commercial
approach to enhance our vertical competences and value proposition. Furthermore, we have
commercial initiatives in place to support cross-divisional cooperation and our Green Logis-
tics services.
We always pursue profitable growth, and the financial performance of each initiative is
tracked, as part of our normal business reviews.
In a low-growth and highly competitive market, we achieved solid financial
results in 2023. Measured by development in absolute gross profit and EBIT,
we outperformed our large peers, indicating that our value proposition and
market position are robust.
In 2023, we made good progress on several strategic initiatives which aim to
strengthen our network services and our commercial approach to the market.
These are long-term initiatives which are expected to have gradual effect over
the coming years.
Based on this, we estimate that the risk associated with executing our organic
growth strategy decreased in 2023.
36 DSV Annual Report 2023 Corporate governance and shareholder information
Annual General Meeting
Board of Directors
Executive Board
Division Management
Air & SeaRoad Solutions
Organisation
Board
Committees
Sustainability
Board
Group
functions
Management structure
The Board of Directors outlines and supervises the overall vision, strategy
and objectives of the Group’s business activities.
The Executive Board is responsible for the execution of these activities and
for the day-to-day management of the Group. It also provides input and
supports the work done by the Board of Directors.
Divisional Management is responsible for managing the operational activi-
ties of the divisions, supported by centralised Group functions.
The Board of Directors
Board composition
The Board of Directors must comprise five to nine members in accordance
with the Articles of Association and currently numbers eight members.
Directors are elected for a term of one year, and new Directors are elected
in accordance with the applicable rules of the Danish Companies Act.
At the ordinary General Meeting in March 2023, Birgit W. Nørgaard
resigned from her position after serving 13 years on the Board. Helle
Østergaard Kristiansen joined in her place, bringing substantial manage-
ment experience within finance, regulatory compliance, renewable energy
and sustainability.
Corporate governance
All members of the Board of Directors are considered independent in
accordance with the Danish Recommendation on Corporate Governance
with the exception of Thomas Plenborg, who has served more than
12 years on the Board.
Board competencies
The Board is composed so as to ensure that the competences of its
members are diverse and business relevant, so it can perform its duties
as intended. Overboarding is also taken into consideration when deter-
mining the Board’s composition.
The current competencies required of Board members are: knowledge of
the transport sector, international commercial experience as well as ex-
perience in strategy, M&A, risk management, IT, human resources and
accounting. See page 40 for a description of the individual members’
competencies and experience.
Board self-evaluation
Once a year, the Board of Directors self-evaluates its composition, com-
petencies and performance during the year. Diversity, overboarding,
internal management cooperation, succession planning and strategic
focus areas for the coming year are some of the topics evaluated.
The Board of Directors and the Executive Board form the governing body
of DSV, the ultimate authority resting with the shareholders at the General
Meeting. The allocation of tasks and responsibilities between the two boards
is defined by the Rules of Procedure.
37 DSV Annual Report 2023 Corporate governance and shareholder information
The Chairman of the Board is responsible for initiating and running the eval-
uation process, which includes a mix of questionnaires and interviews. When
completed, the outcome is presented to and discussed by the Board.
At least every third year, external advisors are brought in to help conduct
the annual self-evaluation. The last time external advisors were used was
in 2021. Involving external advisors helps give an independent perspec-
tive on the performance and composition of the Board of Directors. The
Board can then use their input to support the self-evaluation the follow-
ing years.
The 2023 self-evaluation addressed a number of topics – including Board
members’ mix of competences and insight in areas like digitalisation and
ESG regulation. The summary report had no reservations on these topics
and validated the appropriateness of the current Board composition.
Board committees
The Board of Directors is assisted by an audit, nomination and remunera-
tion committee. Each is responsible for carrying out various preparatory
tasks around the Board’s key areas of responsibility.
The committees also assist the Board by preparing and assessing all man-
agerial and strategic proposals presented to the Board, to ensure a solid
and informed basis for decision-making.
The rules of procedure for the committees are available at: https://www.
dsv.com/en/board-committees
Board meetings
In 2023, the Board of Directors held nine ordinary and three extraordi-
nary meetings. The agenda for each is defined in accordance with the
annual cycle of the Board to make sure the strategic and operational poli-
cy framework of the Group is always up to date and in accordance with
the emphasis defined by the Board.
Besides the work outlined in the annual cycle, this year the Board mainly
focused on growth strategies, the Group's sustainability efforts and the
continuous development of our digital freight forwarding platforms.
The Board also addressed various strategic considerations and business
adaptations in view of the emerging economic slowdown in a number of
major global economies and other macroeconomic impacts brought on by
current geopolitical conflicts.
Meeting attendance 2023
Board of
Directors
Audit
Committee
Nomination
Committee
Remune ration
Committee
Thomas Plenborg 12/12 3/3 2/2 2/2
Jørgen Møller 12/12 - 1/1 1/1
Marie-Louise Aamund 12/12 3/3 1/1 -
Beat Walti 12/12 - - 2/2
Niels Smedegaard 12/12 3/3 - -
Tarek Sultan Al-Essa 12/12 - - -
Benedikte Leroy 12/12 1/1 1/1 1/1
Helle Ø. Kristiansen (elected March 2023) 10/10 2/2 - -
Birgit W. Nørgaard (resigned March 2023) 2/2 - 1/1 -
38 DSV Annual Report 2023 Corporate governance and shareholder information
ME = Member
Remuneration of the Board of Directors and Executive Board
Remuneration policy
Remuneration of the Board of Directors and Executive Board is carried
out in accordance with DSV’s Remuneration Policy as adopted by the
Annual General Meeting.
The purpose of the Remuneration Policy is threefold: to make sure DSV
can attract and retain qualified members of the Board of Directors and
Executive Board, to align the interests of the Executive Board with those
of our investors and other societal stakeholders, and ultimately to create
incentive for generating long-term value for shareholders and executing
on goals set by the Board of Directors (for example around sustainability
or other strategic business initiatives).
The latest DSV Remuneration Policy is available at: https://www.dsv.com/
en/remuneration-policy
Remuneration report
We report on the remuneration of members of the Board of Directors and
Executive Board separately in the DSV Remuneration Report.
The report is prepared in accordance with section 139b of the Danish
Companies Act and the Danish Recommendations on Corporate Governance
and is available at: https://www.dsv.com/en/remuneration-reports
Report on Corporate Governance cf. section 107b
of the Danish Financial Statements Act
In managing DSV, the Board of Directors applies the latest Recommen-
dations on Corporate Governance issued by the Danish Committee on
Corporate Governance.
The Board uses the Recommendations for guidance when setting up
management structures, tasks and procedures and checks against them
to make sure we are acting in accordance with the principal intentions of
the Recommendations. The Board regularly assesses its procedures based
on the Recommendations.
DSV fully abided by the Recommendations in 2023.
We report on our adherence to the Recommendations – including internal
controls and risk management systems applied as basis for our reporting
process – in the Statutory Report on Corporate Governance available at
Reporting on Data Ethics policies cf. section 99d
of the Danish Financial Statements Act
We report separately on our policies and approach to Data Ethics in
accordance with section 99d of the Danish Financial Statements Act.
The reporting is available in our Statutory Report on Data Ethics at:
Jens Bjørn Andersen
Office CEO
Member since 2008
Born 1966
Jens H. Lund
Office COO and
Vice CEO
Member since 2002
Born 1969
Michael Ebbe
Office CFO
Member since 2021
Born 1970
Board positions
ME EET Group Holdings ApS
Executive Board
39 DSV Annual Report 2023 Corporate governance and shareholder information
Jørgen Møller
Office Deputy Chairman
Member since 2015
Up for re-election Yes
Independent Yes
Born 1950
Committee
Audit Committee -
Nomination Committee -
Remuneration Committee -
Skills and experience
• General international management experience
• Extensive experience in shipping and logistics
(industry expert)
• CEO of DSV Air & Sea Holding A/S 2002-2015
Beat Walti
Office Member
Member since 2019
Up for re-election Yes
Independent Yes
Born 1968
Committee
Audit Committee -
Nomination Committee -
Remuneration Committee Chairman
Skills and experience
• Professional board and general management experience
• Dr. jur. and legal experience serving as an attorney-at-law
• Acquisition and divestment of enterprises
Other Board positions
CM Ernst Göhner Foundation ME Wenger Vieli AG
CM Rahn AG ME EGS Beteiligungen Ltd
ME Siegfried Holding AG*
Benedikte Leroy
Office Member
Member since 2022
Up for re-election Yes
Independent Yes
Born 1970
Committee
Audit Committee -
Nomination Committee Chairman
Remuneration Committee Member
Skills and experience
• International board and general management experience
• Extensive experience in technology from international
leadership roles in Dell, Symantec, GE and Apple
• Legal compliance, ethics and extensive insight in
environmental, social and governance regulation
(sustainability expert), latest in Volvo Trucks
• Acquisition and divestment of enterprises
Helle Østergaard
Kristiansen
Office Member
Member since 2023
Up for re-election Yes
Independent Yes
Born 1978
Committee
Audit Committee Chairman
Nomination Committee -
Remuneration Committee -
Skills and experience
• General international management experience
• Extensive experience in finance, renewable energy
and sustainability (sustainability expert)
• Corporate strategy, operation and resource advisory
Other Board positions
ME Systematic A/S
CEO Danske Commodities A/S
Niels Smedegaard
Office Member
Member since 2020
Up for re-election Yes
Independent Yes
Born 1962
Tarek Sultan Al-Essa
Office Member
Member since 2021
Up for re-election Yes
Independent Yes
Born 1964
Committee
Audit Committee Member
Nomination Committee -
Remuneration Committee -
Skills and experience
• General international management experience
• Extensive experience in shipping, logistics and the
airline industry (industry expert)
• Acquisition and divestment of enterprises
Other Board positions
CM ISS A/S*
CM Abacus Medicine A/S
CM Bikubenfonden
CM Falck A/S
Committee
Audit Committee -
Nomination Committee -
Remuneration Committee -
Skills and experience
• Extensive experience in shipping and logistics
• Acquisition and divestment of enterprises
• General international management experience
• Extensive insight in environmental, social and
governance regulation (sustainability expert)
Other Board positions
CM Sultan Center Food Products Company K.S.C*
DC Agility Public Warehousing Company K.S.C.P.*
ME National Real Estate Company K.P.S.C.*
Thomas Plenborg
Office Chairman
Member since 2011
Up for re-election Yes
Independent No
Born 1967
Committee
Audit Committee Member
Nomination Committee Member
Remuneration Committee Member
Skills and experience
• Management experience from directorships and
honorary oces
• Strategy and financial management
• Professor of accounting and auditing at
Copenhagen Business School
Other Board positions
CM ECIT AS* ME Menzies Aviation Limited
Marie-Louise Aamund
Office Member
Member since 2019
Up for re-election Yes
Independent Yes
Born 1969
Committee
Audit Committee Member
Nomination Committee Member
Remuneration Committee -
Skills and experience
• General international management experience
• International tech leadership experience from Microso,
IBM and Google
• Cybersecurity, digital transformation and sustainability
• Acquisition and divestment of enterprises
Other Board positions
ME The Lego Foundation ME WS Audiology A/S
ME KIRKBI A/S ME Matas*
CM = Chairman
DC = Deputy Chairman ME = Member * = Listed company
CM Nordic Ferry
Infrastructure
ME UK P&I
ME TT Club
Board of Directors
40 DSV Annual Report 2023 Corporate governance and shareholder information
DSV share price (DKK) ■ DSV ■ C25 rebased 31-12-2019
31/12 202031/12 2019 31/12 2021 31/12 2022 31/12 2023
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Share price performance in 2023
At year-end, the closing price for DSV shares on Nasdaq
Copenhagen was DKK 1,185.5 – up 8.1% since year-end 2022.
During the same period, the Danish C25 Index increased by 7.1%.
The average daily trading volume of DSV shares on Nasdaq Co-
penhagen was 329,172 shares in 2023 (0.2% of shares issued).
At year-end, DSV’s market capitalisation (excluding treasury
shares) was DKK 248 billion against DKK 238 billion at the
end of 2022.
Ownership
There is no complete record of all shareholders. Based on
the available information as of 31 December 2023, DSV had
94,369 registered shareholders. The registered shares totalled
213 million, corresponding to 97.2% of the share capital. The
25 largest shareholders owned 61.1% of the free-floating
share capital.
DSV has no majority shareholders.
Shareholders owning more than 5% of the share capital in
DSV A/S according to latest shareholding notifications are:
• Ernst Göhner Stiftung, Switzerland (9.7%)
• Agility Public Warehousing Company K.S.C.P, Kuwait (8.8%)
• BlackRock, Inc., USA (7.8%)
• Capital Group Companies, Inc., USA (5.1%)
Shareholder information
Share buyback and treasury shares
In 2023, DSV acquired 11.1 million treasury shares at a total
purchase price of DKK 13,997 million (average purchase
price DKK 1,264 per share).
On 31 December 2023, DSV held 9.8 million shares as
treasury shares, corresponding to 4.5% of the share capital.
On 31 January 2024, our portfolio of treasury shares
amounted to 10.3 million shares.
Throughout 2023, we have engaged in five share buyback
programmes. The purpose of these was to accommodate the
exercise of share options under incentive schemes and to adjust
the capital structure in accordance with the financial targets.
The shares were acquired under the authorisation of the
Annual General Meeting and in compliance with the Safe
Harbour principles.
Dividends
The Board of Directors proposes an ordinary dividend of
DKK 7.00 per share for 2023 (2022: DKK 6.50).
Shares issued (‘000) 2019 2020 2021 2022 2023
Number of shares issued 235,000 230,000 240,000 219,000 219,000
Average number of shares out-
standing during the past 12 months 198,273 227,246 227,501 227,317 213,518
Average diluted number of shares
outstanding during the past
12 months 201,405 231,576 232,639 230,467 215,519
41 DSV Annual Report 2023 Corporate governance and shareholder information
Capital allocation policy
Our capital allocation principles are described on page 18.
Authorities granted to the Board of Directors
The following authorities have been granted to the Board of Directors:
• to increase DSV’s share capital by issuing up to 48 million shares with
or without pre-emptive rights for existing shareholders. This authority
remains valid until 8 September 2026; and
• to acquire up to 21.9 million own shares, of which 9.1 million were
acquired as of 31 December 2023. This authority remains valid until
16 March 2028.
Share capital reduction
Following the acquisition of treasury shares, the Board of Directors in-
tends to propose to the 2024 Annual General Meeting that the Board
be authoritsed to reduce the share capital by a nominal value of DKK
5 million.
Communication with shareholders
We wish to provide the basis for fair and efficient pricing of the DSV share
by practising open and proactive communication.
To keep investors and other stakeholders up to date with the latest devel-
opments, our Executive Management host conference calls following the
release of financial results. Throughout the year, Executive Management
and Investor Relations stay in close contact with existing and potential
investors as well as market analysts, engaging with them through road-
shows and conferences hosted by various brokers.
We observe a four-week silent period prior to the publication of annual and
interim reports. DSV is covered by more than 20 equity analysts. For more
information about analyst coverage, please visit investor.dsv.com
DSV share data
Number of shares of DKK 1 on 31 Dec. 2023 219,000,000
Share classes 1
Restrictions on transferability and voting rights None
Listed Nasdaq Copenhagen
Trading symbol DSV
ISIN code DK0060079531
Company announcements
In 2023, we published 73 company announcements (Nos. 1007-1079).
The most important of these are listed in the chart below:
02 Feb. No. 1012 Annual Report 2022
16 Mar. No. 1022 Annual General Meeting
27 Apr. No. 1030 Interim Financial Report Q1 2023
25 Jul. No. 1045 Upgrade of financial outlook for 2023
25 Jul. No. 1046 Interim Financial Report H1 2023
18 Oct. No. 1062 DSV announces changes to Executive Board
24 Oct. No. 1064 NEOM and DSV establish USD 10 billion
logistics joint venture
24 Oct. No. 1065 Interim Financial Report Q3 2023
Financial calendar
The financial calendar for 2024 is as follows:
Annual General Meeting 14 March
Q1 2024 Report 24 April
H1 2024 Report 24 July
Q3 2024 Report 23 October
Others
%
Kuwait
UK
%
Switzerland
%
%
USA
%
%
Denmark
The geographical distribution
of our shareholders
42 DSV Annual Report 2023 Corporate governance and shareholder information
Quarterly financial highlights
2023 2022
Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Statement of profit or loss (DKKm)
Revenue* 40,954 37,727 35,576 36,528 150,785 61,125 62,749 60,560 51,231 235,665
Gross profit* 11,391 11,331 10,649 10,447 43,818 12,877 14,078 13,538 11,656 52,149
Operating profit (EBIT) before special items* 4,672 4,705 4,396 3,950 17,723 6,496 7,453 6,506 4,749 25,204
Operating margin (%) 11.4 12.5 12.4 10.8 11.8 10.6 11.9 10.7 9.3 10.7
Conversion ratio (%) 41.0 41.5 41.3 37.8 40.4 50.4 52.9 48.1 40.7 48.3
ROIC before tax (%) (trailing 12 months) 23.2 20.4 17.9 17.8 17.8 23.1 27.2 24.7 25.1 25.1
Invested capital (YTD) 97,151 97,019 99,791 99,973 99,973 103,986 105,596 106,713 99,540 99,540
Segment information (DKKm)
Air & Sea
Revenue 26,213 22,993 21,912 21,854 92,972 45,887 47,282 45,339 35,923 174,431
Gross profit 7,027 6,754 6,210 5,979 25,970 8,637 9,575 9,135 7,277 34,624
Operating profit (EBIT) before special items 3,626 3,574 3,281 2,882 13,363 5,224 6,163 5,455 3,816 20,658
Operating margin (%) 13.8 15.5 15.0 13.2 14.4 11.4 13.0 12.0 10.6 11.8
Conversion ratio (%) 51.6 52.9 52.8 48.2 51.5 60.5 64.4 59.7 52.4 59.7
Road
Revenue 10,094 9,650 9,036 9,375 38,155 10,188 10,835 10,406 10,078 41,507
Gross profit 1,976 2,023 1,924 1,937 7,860 1,938 2,074 1,989 1,910 7,911
Operating profit (EBIT) before special items 495 525 522 467 2,009 498 566 525 451 2,040
Operating margin (%)
4.9 5.4 5.8
5.0 5.3
4.9 5.2 5.0
4.5 4.9
Conversion ratio (%) 25.1 26.0 27.1 24.1 25.6 25.7 27.3 26.4 23.6 25.8
Solutions
Revenue 5,625 5,898 5,538 6,079 23,140 6,162 6,182 5,841 6,224 24,409
Gross profit 2,285 2,373 2,381 2,471 9,510 2,322 2,324 2,325 2,347 9,318
Operating profit (EBIT) before special items 548 613 584 610 2,355 789 753 613 546 2,701
Operating margin (%) 9.7 10.4 10.5 10.0 10.2 12.8 12.2 10.5 8.8 11.1
Conversion ratio (%) 24.0 25.8 24.5 24.7 24.8 34.0 32.4 26.4 23.3 29.0
Please refer to page 82 for a definition of key figures and financial ratios. * Reference is made to note 2.1 Segment information for a reconciliation of revenue, gross profit and operating profit before special items.
43 DSV Annual Report 2023 Other information
Consolidated
financial
statements
2023
Statement of profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Statement of comprehensive income ................... 45
Statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Statement of financial position ......................... 47
Statement of changes in equity ........................ 48
Notes to the consolidated financial statements ........... 49
44 DSV Annual Report 2023 Consolidated financial statements 2023
Statement of profit or loss Statement of comprehensive income
(DKKm) Note 2023 2022
Revenue 2.2 150,785 235,665
Direct costs 2.3 106,967 183,516
Gross profit 43,818 52,149
Other external costs 2.4 4,838 5,559
Staff costs 2.5 15,983 16,315
Operating profit before amortisation and depreciation (EBITDA)
before special items 22,997 30,275
Amortisation and depreciation 2.6 5,274 5,071
Operating profit (EBIT) before special items 17,723 25,204
Special items, costs 2.7 - 1,117
Financial income 2.8 473 606
Financial expenses 2.8 1,706 1,472
Profit before tax 16,490 23,221
Tax on profit for the year 5.1 4,083 5,550
Profit for the year 12,407 17,671
Profit for the year attributable to:
Shareholders of DSV A/S 12,315 17,568
Non-controlling interests 92 103
Earnings per share:
Earnings per share of DKK 1 4.6 57.7 77.3
Diluted earnings per share of DKK 1 4.6 57.1 76.2
(DKKm) Note 2023 2022
Profit for the year 12,407 17,671
Items that may be reclassified to profit or loss when certain
conditions are met:
Net foreign exchange differences recognised in OCI (1,626 ) 1,260
Fair value adjustments of hedging instruments (10 ) 9
Fair value adjustments of hedging instruments transferred
to financial expenses (5 ) 9
Tax on items reclassified to profit or loss 5.1 6 (2 )
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) 3.7 (398 ) (395 )
Tax on items that will not be reclassified 5.1 75 54
Other comprehensive income, net of tax (1,958 ) 935
Total comprehensive income 10,449 18,606
Total comprehensive income attributable to:
Shareholders of DSV A/S 10,363 18,500
Non-controlling interests 86 106
Total 10,449 18,606
45 DSV Annual Report 2023 Consolidated financial statements 2023
Statement of cash flows
(DKKm) Note 2023 2022
Operating profit before amortisation and depreciation (EBITDA)
before special items 22,997 30,275
Adjustments:
Share-based payments 6.2 267 202
Change in provisions (704 ) 520
Change in working capital 826 2,840
Special items, paid 2.7 (263 ) (664 )
Interest received 2.8 473 323
Interest paid, lease liabilities 3.6 (851 ) (727 )
Interest paid, other 2.8 (698 ) (745 )
Income tax paid 5.1 (5,589 ) (5,178 )
Cash flow from operating activities 16,458 26,846
Purchase of intangible assets 3.2 (345 ) (280 )
Purchase of property, plant and equipment 3.3 (2,030 ) (1,514 )
Disposal of property, plant and equipment 3.3 1,258 824
Acquisition of subsidiaries and activities 6.1 (685 ) -
Change in other financial assets (228 ) 4
Cash flow from investing activities (2,030 ) (966 )
Free cash flow 14,428 25,880
Proceeds from borrowings 4.3 212 4,393
Repayment of borrowings 4.3 (327 ) (3,719 )
Repayment of lease liabilities 4.3 (3,905 ) (3,734 )
Other financial liabilities incurred 108 (161 )
(DKKm) Note 2023 2022
Transactions with shareholders:
Dividends distributed to shareholders of DSV A/S 4.2 (1,424 ) (1,320 )
Purchase of treasury shares 4.1 (13,997 ) (20,313 )
Sale of treasury shares 4.1 1,794 618
Other transactions with shareholders and non-controlling interests (35 ) (9 )
Cash flow from financing activities (17,574 ) (24,245 )
Cash flow for the year (3,146 ) 1,635
Cash and cash equivalents 1 January 10,160 8,299
Cash flow for the year (3,146 ) 1,635
Currency translation (562 ) 226
Cash and cash equivalents 31 December 4.2 6,452 10,160
The statement of cash flows cannot be directly derived from the statement of financial position and statement of profit or loss.
Statement of adjusted free cash flow (DKKm) Note 2023 2022
Free cash flow 14,428 25,880
Net acquisition of subsidiaries and activities (reversed) 6.1 685 -
Special items (reversed) 2.7 263 664
Repayment of lease liabilities 4.3 (3,905 ) (3,734 )
Adjusted free cash flow 11,471 22,810
46 DSV Annual Report 2023 Consolidated financial statements 2023
Statement of financial position
Assets (DKKm) Note 2023 2022
Intangible assets 3.2 77,106 77,674
Right-of-use assets 3.6 15,655 14,694
Property, plant and equipment 3.3 6,214 6,284
Other receivables 2,461 2,461
Deferred tax assets 5.2 3,300 3,494
Total non-current assets 104,736 104,607
Trade receivables 4.4 22,296 32,387
Contract assets 3.4 4,985 5,785
Inventories 3.5 4,314 1,889
Other receivables 4,283 4,179
Cash and cash equivalents 4.2 6,452 10,160
Assets held for sale 44 38
Total current assets 42,374 54,438
Total assets 147,110 159,045
Equity and liabilities (DKKm) Note 2023 2022
Share capital 4.1 219 219
Reserves 4.1 (718 ) 919
Retained earnings 69,202 70,381
DSV A/S shareholders’ share of equity 68,703 71,519
Non-controlling interests 263 222
Total equity 68,966 71,741
Lease liabilities 3.6 14,139 13,190
Borrowings 4.3 20,004 21,398
Pensions and other post-employment benefit plans 3.7 1,281 1,183
Provisions 3.8 3,772 4,260
Deferred tax liabilities 5.2 609 504
Total non-current liabilities 39,805 40,535
Lease liabilities 3.6 3,808 3,577
Borrowings 4.3 2,139 814
Trade payables 4.4 13,111 14,992
Accrued cost of services 3.4 7,920 12,085
Provisions 3.8 1,967 2,407
Other payables 8,138 9,640
Tax payables 1,256 3,254
Total current liabilities 38,339 46,769
Total liabilities 78,144 87,304
Total equity and liabilities 147,110 159,045
47 DSV Annual Report 2023 Consolidated financial statements 2023
Statement of changes in equity
2023 2022
Attributable to shareholders of DSV A/S Attributable to shareholders of DSV A/S
(DKKm)
Share
capital Reserves*
Retained
earnings Tota l
Non-
con trolling
interests
Total
equity
Share
capital Reserves*
Retained
earnings Tota l
Non-
con trolling
interests
Total
equity
Equity at 1 January 219 919 70,381 71,519 222 71,741 240 (356 ) 74,219 74,103 175 74,278
Profit for the year - - 12,315 12,315 92 12,407 - - 17,568 17,568 103 17,671
Other comprehensive income, net of tax - (1,629 ) (323 ) (1,952 ) (6 ) (1,958 ) - 1,271 (339 ) 932 3 935
Total comprehensive income for the year - (1,629 ) 11,992 10,363 86 10,449 - 1,271 17,229 18,500 106 18,606
Transactions with shareholders and
non-controlling interests:
Share-based payments - - 267 267 - 267 - - 202 202 - 202
Tax on share-based payments - - 171 171 - 171 - - (322 ) (322 ) - (322 )
Dividends distributed - - (1,424 ) (1,424 ) (50 ) (1,474 ) - - (1,320 ) (1,320 ) (58 ) (1,378 )
Purchase of treasury shares - (11 ) (13,986 ) (13,997 ) - (13,997 ) - (19 ) (20,294 ) (20,313 ) - (20,313 )
Sale of treasury shares - 3 1,791 1,794 - 1,794 - 2 616 618 - 618
Capital reduction - - - - - - (21 ) 21 - - (1 ) (1 )
Dividends on treasury shares - - 19 19 - 19 - - 43 43 - 43
Other adjustments - - (9 ) (9 ) 5 (4 ) - - 8 8 - 8
Total equity transactions - (8 ) (13,171 ) (13,179 ) (45 ) (13,224 ) (21 ) 4 (21,067 ) (21,084 ) (59 ) (21,143 )
Equity at 31 December 219 (718 ) 69,202 68,703 263 68,966 219 919 70,381 71,519 222 71,741
* For a specification of reserves, please refer to note 4.1.
48 DSV Annual Report 2023 Consolidated financial statements 2023
Notes to the
consolidated
financial
statements
Contents
Chapter 1
Basis of preparation
Basis of measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Changes in accounting policies . . . . . . . . . . . . . . . . . . . . . . . 50
Management judgements and estimates . . . . . . . . . . . . . . . . . 50
Climate-related risks in the financial statments . . . . . . . . . . . . . 50
Basis of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Foreign currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Presentation of the Annual Report . . . . . . . . . . . . . . . . . . . . . 51
New accounting regulations. . . . . . . . . . . . . . . . . . . . . . . . . 51
Chapter 2
Profit for the year
2.1 Segment information . . . . . . . . . . . . . . . . . . . . . . . . . 52
2.2 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
2.3 Direct costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
2.4 Other external costs . . . . . . . . . . . . . . . . . . . . . . . . . 55
2.5 Staff costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
2.6 Amortisation and depreciation. . . . . . . . . . . . . . . . . . . . 55
2.7 Special items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.8 Financial income and expenses . . . . . . . . . . . . . . . . . . . 56
Chapter 3
Operating assets and liabilities
3.1 Impairment test . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
3.2 Intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
3.3 Property, plant and equipment . . . . . . . . . . . . . . . . . . . 60
3.4 Contract assets and accrued cost of services . . . . . . . . . . . 61
3.5 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.6 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
3.7 Pension and other post-employment benefit plans . . . . . . . . 63
3.8 Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Chapter 4
Capital structure and finances
4.1 Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
4.2 Capital structure and capital allocation . . . . . . . . . . . . . . . 67
4.3 Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
4.4 Financial risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
4.5 Derivative financial instruments. . . . . . . . . . . . . . . . . . . 72
4.6 Earnings per share. . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4.7 Financial instruments – fair value hierarchy . . . . . . . . . . . . 73
Chapter 5
Tax
5.1 Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
5.2 Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Chapter 6
Other notes
6.1 Acquisition and disposal of entities . . . . . . . . . . . . . . . . . 77
6.2 Share option schemes . . . . . . . . . . . . . . . . . . . . . . . . 78
6.3 Remuneration of the Executive Board and
the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . 80
6.4 Fees to auditors appointed at the
Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . 80
6.5 Related parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
6.6 Contingent liabilities and security for debt . . . . . . . . . . . . .81
49 DSV Annual Report 2023 Consolidated financial statements 2023
50 DSV Annual Report 2023 Consolidated financial statements 2023
51 DSV Annual Report 2023 Consolidated financial statements 2023
Chapter 2
Profit for
the year
This chapter includes disclosures on
components of consolidated profit for the
year. The consolidated profit is based on the
combined results of our three operating
segments – Air & Sea, Road and Solutions
– as described in the following.
Reference is also made to the comments on
the financial performance of the Group and
the divisions in Management’s commentary.
52 DSV Annual Report 2023 Consolidated financial statements 2023
2.1 Segment information – continued
53 DSV Annual Report 2023 Consolidated financial statements 2023
54 DSV Annual Report 2023 Consolidated financial statements 2023
2.2 Revenue - continued
55 DSV Annual Report 2023 Consolidated financial statements 2023
56 DSV Annual Report 2023 Consolidated financial statements 2023
Chapter 3
Operating assets
and liabilities
This chapter includes disclosures on the
Group’s invested capital that forms the basis of
our business activities. Invested capital repre-
sents the Group’s property, plant and equip-
ment, intangible assets and net working capital
in the form of operating assets and liabilities.
Invested capital is structured based on our
asset-light business model, including our focus
on minimising funds tied up in working capital
to optimise the generation of available free
cash flow. Invested capital also com prises
significant intangible assets mainly relating to
acquired goodwill from business combinations
carried out over the years.
57 DSV Annual Report 2023 Consolidated financial statements 2023
3.1 Impairment testing — continued
58 DSV Annual Report 2023 Consolidated financial statements 2023
59 DSV Annual Report 2023 Consolidated financial statements 2023
60 DSV Annual Report 2023 Consolidated financial statements 2023
3.3 Property, plant and
equipment — continued
61 DSV Annual Report 2023 Consolidated financial statements 2023
3.6 Leases — continued
62 DSV Annual Report 2023 Consolidated financial statements 2023
63 DSV Annual Report 2023 Consolidated financial statements 2023
3.7 Pensions and other post-employment benefit plans — continued
64 DSV Annual Report 2023 Consolidated financial statements 2023
65 DSV Annual Report 2023 Consolidated financial statements 2023
Chapter 4
Capital structure
and finances
This chapter includes disclosures on the
financial basis and exposures of the Group’s
activities derived by our capital structure and
net working capital.
The capital structure is linked to our long-term
financial target of a gearing ratio below 2.0x
EBITDA before special items and our principles
for capital allocation.
In order of priority, the free cash flow is used to
reduce the Group’s net interest- bearing debt
in periods when the gearing ratio exceeds the
target, for investments and business combina-
tions, and for share buybacks or distribution to
the Company’s shareholders.
66 DSV Annual Report 2023 Consolidated financial statements 2023
4.1 Equity — continued 4.2 Capital structure and
67 DSV Annual Report 2023 Consolidated financial statements 2023
4.2 Capital structure and
capital allocation — continued
68 DSV Annual Report 2023 Consolidated financial statements 2023
69 DSV Annual Report 2023 Consolidated financial statements 2023
4.4 Financial risks — continued
70 DSV Annual Report 2023 Consolidated financial statements 2023
4.4 Financial risks — continued
71 DSV Annual Report 2023 Consolidated financial statements 2023
72 DSV Annual Report 2023 Consolidated financial statements 2023
2023 2022
73 DSV Annual Report 2023 Consolidated financial statements 2023
Chapter 5
Tax
In 2023, we contributed with direct and
indirect taxes such as corporate taxes, VAT,
GST, duties, etc., in more than 80 countries.
Our corporate tax payments amounted to
DKK 5,589 million.
We believe in contributing to the societies
and communities we do business in. One of
the ways we do that is through our global tax
payments. In all tax matters, we act in a fair,
compliant and responsible way.
74 DSV Annual Report 2023 Consolidated financial statements 2023
5.1 Income tax — continued
75 DSV Annual Report 2023 Consolidated financial statements 2023
5.2 Deferred tax — continued
76 DSV Annual Report 2023 Consolidated financial statements 2023
Chapter 6
Other notes
This chapter includes disclosures on other
statutory information not directly related
to the operating activities of the Group.
The chapter describes the acquisition and
disposal of entities during the year, contingent
liabilities and security for debt as well as trans-
actions with Group Management, auditors
and other related parties.
77 DSV Annual Report 2023 Consolidated financial statements 2023
78 DSV Annual Report 2023 Consolidated financial statements 2023
6.2 Share option schemes — continued
79 DSV Annual Report 2023 Consolidated financial statements 2023
80 DSV Annual Report 2023 Consolidated financial statements 2023
81 DSV Annual Report 2023 Consolidated financial statements 2023
82 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
83 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
84 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
85 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
86 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
87 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
Company Country
Ownership
share Activity
88 DSV Annual Report 2023 Consolidated financial statements 2023
Company Country
Ownership
share Activity
89 DSV Annual Report 2023 Consolidated financial statements 2023
Statement by
the Board of
Directors and
the Executive
Board
Executive Board:
Board of Directors:
90 DSV Annual Report 2023 Statements
Report on the audit of the Financial
Statements
Independent
Auditor’s reports
91 DSV Annual Report 2023 Statements
92 DSV Annual Report 2023 Statements
CVR no 3377 1231
State Authorised
Public Accountant
93 DSV Annual Report 2023 Statements
Contents
Parent
Company
financial
statements
2023
Financial statements
Statement of profit or loss .......................................95
Statement of comprehensive income ..............................95
Statement of cash flows .........................................96
Statement of financial position ....................................97
Statement of changes in equity ...................................98
Notes to the Parent Company financial statements
Basis of preparation
1. Material accounting policy information .........................99
2. Changes in accounting policies ................................99
3. Management judgements and estimates .......................99
4. New accounting regulations ..................................99
Profit for the year
5. Revenue ...................................................99
6. Fees to auditors appointed at the Annual General Meeting .......99
7. Staff costs .................................................99
8. Special items ............................................. 100
9. Financial income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
10. Financial expenses ......................................... 100
11. Income tax ............................................... 100
Financial position
12. Intangible assets .......................................... 100
13. Other plant and operating equipment ........................ 101
14. Equity reserves ........................................... 101
15. Financial liabilities ......................................... 102
16. Deferred tax .............................................. 102
Other notes
17. Share option schemes ..................................... 103
18. Investments in Group entities ............................... 103
19. Derivative financial instruments ............................. 104
20. Financial risks ............................................. 104
21. Related parties ............................................ 105
22. Contingent liabilities and security for debt .................... 105
94 DSV Annual Report 2023 Parent Company financial statements 2023
Statement of profit or loss Statement of comprehensive income
(DKKm) Note 2023 2022
Revenue 5 3,320 3,077
Gross profit 3,320 3,077
Other external costs 6 1,792 1,533
Staff costs 7 1,578 1,411
Operating profit before amortisation and depreciation (EBITDA)
before special items (50) 133
Amortisation and depreciation 263 255
Operating profit (EBIT) before special items (313) (122)
Special items, cost 8 67 84
Financial income 9 9,915 5,006
Financial expenses 10 1,608 594
Profit before tax 7,927 4,206
Tax on profit for the year 11 82 349
Profit for the year 7,845 3,857
Proposed distribution of profit:
Proposed dividend per share is DKK 7.00 (2022: DKK 6.50 per share) 1,533 1,424
Transferred to equity reserves 6,312 2,433
Total distribution 7,845 3,857
(DKKm) 2023 2022
Profit for the year 7,845 3,857
Items that may be reclassified to profit or loss when certain conditions are met:
Fair value adjustments of hedging instruments transferred to financial expenses 1 1
Other comprehensive income, net of tax 1 1
Total comprehensive income 7,846 3,858
95 DSV Annual Report 2023 Parent Company financial statements 2023
Statement of cash flows
(DKKm) Note 2023 2022
Operating profit before amortisation and depreciation (EBITDA)
before special items (50) 133
Adjustments:
Share-based payments 17 47 36
Change in working capital (130) 55
Dividend received 9 7,654 2,930
Gain on disposal of investment in Group entities 46 -
Interest received 9 197 227
Interest paid 10 (180) (161)
Income tax paid (323) 71
Cash flow from operating activities 7,261 3,291
Purchase of intangible assets 12 (322) (236)
Purchase of other plant and operating equipment 13 (120) (204)
Acquisition and disposal of Group entities and activities 8,845 6,212
Cash flow from investing activities 8,403 5,772
Free cash flow 15,664 9,063
(DKKm) Note 2023 2022
Repayment of issued bonds 15 - (1,500)
Change in payables and borrowings, net 15 (9,359) 11,578
Transactions with shareholders:
Dividends distributed (1,424) (1,320)
Dividends on treasury shares 19 43
Purchase of treasury shares (13,997) (20,313)
Sale of treasury shares 3,704 1,426
Cash flow from financing activities (21,057) (10,086)
Cash flow for the year (5,393) (1,023)
Cash and cash equivalents 1 January 6,673 7,696
Cash flow for the year (5,393) (1,023)
Cash and cash equivalents 31 December 1,280 6,673
The statement of cash flows cannot be directly derived from the statement of financial position and statement of profit or loss.
96 DSV Annual Report 2023 Parent Company financial statements 2023
Assets (DKKm) Note 2023 2022
Intangible assets 12 850 710
Other plant and operating equipment 13 299 306
Investments in Group entities 18 39,029 47,874
Receivables from Group entities 28,114 24,414
Other receivables 45 35
Deferred tax assets 16 67 -
Total non-current assets 68,404 73,339
Receivables from Group entities 11,945 18,414
Other receivables 484 585
Cash and cash equivalents 1,280 6,673
Total current assets 13,709 25,672
Total assets 82,113 99,011
Equity and liabilities (DKKm) Note 2023 2022
Share capital 219 219
Reserves 14 649 545
Retained earnings 36,466 40,385
Total equity 37,334 41,149
Borrowings 15 3,713 5,186
Payables to Group entities 15 16,502 16,202
Provisions 122 74
Deferred tax liabilities 16 - 16
Total non-current liabilities 20,337 21,478
Borrowings 15 1,503 206
Provisions 163 145
Tax payables 11 168
Payables to Group entities 15 22,134 34,901
Other payables 631 964
Total current liabilities 24,442 36,384
Total liabilities 44,779 57,862
Total equity and liabilities 82,113 99,011
Statement of financial position
97 DSV Annual Report 2023 Parent Company financial statements 2023
Statement of changes in equity
2023 2022
(DKKm) Share capital Reserves*
Retained
earnings Total equity Share capital Reserves*
Retained
earnings Total equity
Equity at 1 January 219 545 40,385 41,149 240 488 56,704 57,432
Profit for the year - 111 7,734 7,845 - 52 3,805 3,857
Other comprehensive income, net of tax - 1 - 1 - 1 - 1
Total comprehensive income for the year - 112 7,734 7,846 - 53 3,805 3,858
Transactions with shareholders:
Share-based payments - - 47 47 - - 36 36
Dividends distributed - - (1,424) (1,424) - - (1,320) (1,320)
Purchase of treasury shares - (11) (13,986) (13,997) - (19) (20,294) (20,313)
Sale of treasury shares - 3 3,701 3,704 - 2 1,424 1,426
Capital reduction - - - - (21) 21 - -
Dividends on treasury shares - - 19 19 - - 43 43
Other adjustments - - (10) (10) - - (13) (13)
Total transactions with shareholders - (8) (11,653) (11,661) (21) 4 (20,124) (20,141)
Equity at 31 December 219 649 36,466 37,334 219 545 40,385 41,149
* For a specification of reserves, please refer to note 14.
98 DSV Annual Report 2023 Parent Company financial statements 2023
Basis of preparation
1. Material accounting policy information
As the Parent Company of the DSV Group, the financial statements of
DSV A/S are separate financial statements disclosed as required under
the Danish Financial Statements Act. The separate financial statements
have been prepared in accordance with IFRS Accounting Standards as
issued by the International Accounting Standards Board (IASB) and addi-
tional disclosure requirements for listed companies in the Danish Finan-
cial Statements Act. IFRS Accounting Standards have been applied to the
extent these have been adopted by the European Union. The accounting
policies of the Parent Company are identical with the accounting policies
for the consolidated financial statements, except for the following:
Dividends from investments in subsidiaries
Dividends from investments in subsidiaries are recognised as income
in the Parent Company’s statement of profit or loss under financial
income in the financial year in which the dividends are declared.
Investments in subsidiaries in the Parent Company’s financial statements
Investments in subsidiaries are measured at cost. If there is any indi-
cation of impairment, investments are tested for impairment as de-
scribed in the accounting policies disclosed by the Group. If the cost
exceeds the recoverable amount, the investment is written down to
this lower value.
Receivables from Group Entities
Receivables from Group entities are measured at amortised cost. These
are considered to have low credit risk based on the Group’s credit rating
and consequently the creditworthiness of the major subsidiaries within
the Group. Impairment of receivables from Group Entities is assessed
on an ongoing basis. The impairment provision calculated based on
12 months of expected credit losses is considered immaterial.
Currency translation
Foreign currency adjustments of balances considered part of the
total net investment in Group entities which have a functional
currency other than Danish kroner (DKK) are recognised in the statement
of profit or loss of the Parent Company under financials.
Development cost reserve
In accordance with the Danish Financial Statements Act, the reserve for
development costs comprises capitalised development costs adjusted for
deferred tax.
2. Changes in accounting policies
All amendments to the IFRS Accounting Standards effective for the finan-
cial year 2023 have been implemented as basis for preparing the Parent
Company financial statements and notes to the financial statements.
None of the implementations have had any material impact on the state-
ments or notes presented.
3. Management judgements and estimates
In preparing the Parent Company financial statements, Management
makes various accounting judgements that affect the reported amounts
and disclosures in the statements and in the notes to the financial state-
ments. These are based on professional judgement, historical data and
other factors available to Management. By nature, a degree of uncertain-
ty is involved when carrying out these judgements and estimates, hence
actual results may deviate from the assessments made at the reporting
date. Judgements and estimates are continuously evaluated, and the ef-
fect of any changes is recognised in the relevant period. The primary fi-
nancial statements items for which significant accounting judgements and
estimates are applied are listed below:
Investments in subsidiaries
Management assesses annually whether there is an indication of impair-
ment of investments in subsidiaries. If so, the investments are tested for
impairment in the same way as goodwill, involving various estimates on
future cash flows, growth, discount rates, etc. During the financial year,
the cost price of one subsidiary has been partially written down. As of 31
December 2023, no impairment indicators were identified.
Audit fees and services (DKKm) 2023 2022
Statutory audit 7 7
Other assurance services 2 1
Tax and VAT advisory services - 1
Other services 2 1
Total 11 10
7. Staff costs
For information on remuneration of the Executive Board and the Board of
Directors, refer to notes 6.2 and 6.3 to the consolidated financial statements.
Staff costs (DKKm) 2023 2022
Remuneration of the Board of Directors 8 7
Salaries etc. 528 390
Intra-group salary charges etc.* 994 971
Defined contribution pension plans 48 43
Total 1,578 1,411
Average number of FTEs 666 607
* The intra-group salary charges relate to an average of 1,831 FTEs in 2023 (2022: 1,803).
6. Fees to auditors appointed at the Annual General Meeting
4. New accounting regulations
The IASB has issued a number of new accounting standards and amend-
ments not yet in effect or adopted by the EU and therefore not relevant
for the preparation of the 2023 Parent Company financial statements.
These accounting standards and amendments are expected to be imple-
mented when they take effect. None of the new accounting standards or
amendments issued are currently expected to have any signi ficant impact
on the Parent Company financial statements when implemented.
Profit for the year
5. Revenue
Revenue comprises intra-group charges.
99 DSV Annual Report 2023 Parent Company financial statements 2023
11. Income tax
Tax for the year is disaggregated as follows:
Financial position
12. Intangible assets
Tax on profit for the year specifies as follows:
Tax rate specifies as follows:
Interest income includes interest on financial assets of DKK 1,857 million
(2022: DKK 1,058 million).
10. Financial expenses
Interest expenses include interest on financial liabilities measured at
amortised cost of DKK 1,608 million (2022: DKK 594 million).
Financial income (DKKm) 2023 2022
Interest income 197 227
Interest income from Group entities 1,660 831
Foreign exchange gain, net 332 1,018
Dividends from subsidiaries, net of cost reductions 7,654 2,930
Gain on disposal of investments in Group entities 46 -
Gain on disposal of payables to Group entities 26 -
Total 9,915 5,006
Financial expenses (DKKm) 2023 2022
Interest expenses on borrowings 112 108
Interest expenses, bank 68 53
Interest expenses to Group entities 1,428 433
Total 1,608 594
(DKKm) 2023 2022
Tax on profit for the year 82 349
Total tax for the year 82 349
(DKKm) 2023 2022
Current tax 233 326
Deferred tax (107) 24
Tax adjustment relating to previous years (44) (1)
Total tax on profit for the year 82 349
(%) 2023 2022
Calculated tax on profit for the year 22.0% 22.0%
Tax effect of:
Non-deductible expenses/non-taxable income (20.4%) (13.7%)
Tax adjustment relating to previous years (0.6%) 0.0%
Effective tax rate 1.0% 8.3%
2023 2022
Intangible assets (DKKm) Software
Software in
progress Total Software
Software in
progress Total
Cost at 1 January 941 328 1,269 908 266 1,174
Additions - 322 322 - 236 236
Disposals (51) - (51) (141) - (141)
Reclassifications 302 (302) - 174 (174) -
Total cost at 31 December 1,192 348 1,540 941 328 1,269
Total amortisation and im pairment at 1 January 559 - 559 517 - 517
Amortisation and impairment for the year 136 - 136 151 - 151
Disposals (5) - (5) (109) - (109)
Total amortisation and im pairment at 31 December 690 - 690 559 - 559
Carrying amount at 31 December 502 348 850 382 328 710
9. Financial income
8. Special items
Special items (DKKm) 2023 2022
Restructuring and integration costs - 84
Termination benefits to the Executive Board 67 -
Total 67 84
100 DSV Annual Report 2023 Parent Company financial statements 2023
13. Other plant and operating equipment 14. Equity reserves
Other plant and operating equipment (DKKm) 2023 2022
Cost at 1 January 524 460
Additions 120 204
Disposals - (140)
Total cost at 31 December 644 524
Total depreciation and impairment at 1 January 218 244
Depreciation for the year 127 104
Disposals - (130)
Total depreciation and impairment at 31 December 345 218
Carrying amount at 31 December 299 306
2023
Reserves specification (DKKm)
Treasury
share reserve
Hedging
reserve
Development
cost reserve
Total
reserves
Reserves at 1 January (2) (3) 550 545
Profit for the year - - 111 111
Other comprehensive income, net of tax - 1 - 1
Transactions with shareholders:
Purchase of treasury shares (11) - - (11)
Sale of treasury shares 3 - - 3
Reserves at 31 December (10) (2) 661 649
2022
Reserves specification (DKKm)
Treasury
share reserve
Hedging
reserve
Development
cost reserve
Total
reserves
Reserves at 1 January (6) (4) 498 488
Profit for the year - - 52 52
Other comprehensive income, net of tax - 1 - 1
Transactions with shareholders:
Purchase of treasury shares (19) - - (19)
Sale of treasury shares 2 - - 2
Capital reduction 21 - - 21
Reserves at 31 December (2) (3) 550 545
For a description of equity reserves, please refer to note 4.1 to the consolidated financial statements.
101 DSV Annual Report 2023 Parent Company financial statements 2023
15. Financial liabilities 16. Deferred tax
Borrowings are subject to standard trade covenants. All financial ratio
covenants were observed during the year. The weighted average interest
rate was 2.7% (2022: 0.9%).
Financial liabilities (DKKm) 2023 2022
Payables to Group entities 38,636 51,103
Overdraft and credit facilities 14 206
Issued bonds 5,202 5,186
Total financial liabilities 43,852 56,495
Financial liabilities as recognised
in the statement of financial position:
Non-current liabilities 20,215 21,388
Current liabilities 23,637 35,107
Financial liabilities at 31 December 43,852 56,495
Carrying amount
(DKKm) Expiry
Fixed/floating
interest rate 2023 2022
Payables to
Group entities 2024-2036 Fixed 38,636 51,103
Bond loans 2024-2027 Fixed 5,202 5,186
Overdraft and
credit facilities 2024 Fixed 14 206
Total 43,852 56,495
2023 2022
Non-cash
change
Non-cash
change
Financing activities (DKKm)
Beginning
of year
Cash
flow Other
End of
year
Beginning
of year
Cash
flow Other
End of
year
Payables to Group entities 51,103 (9,167) (3,300) 38,636 40,348 11,420 (665) 51,103
Overdraft and credit facilities 206 (192) - 14 48 158 - 206
Issued bonds 5,186 - 16 5,202 6,681 (1,500) 5 5,186
Total liabilities from financing
activities 56,495 43,852 47,077 56,495
Other non-current liabilities - - 173 (173) -
Total financial liabilities 56,495 (9,359) (3,284) 43,852 47,250 10,078 (833) 56,495
Deferred tax recognised in the
statement of financial position (DKKm) 2023 2022
Deferred tax at 1 January (16) 20
Deferred tax for the year 107 (24)
Tax adjustments relating to previous years (14) 1
Tax on changes in equity (10) (13)
Deferred tax at 31 December 67 (16)
Recognised as follows:
Deferred tax liabilities - 16
Deferred tax assets 67 -
Deferred tax, net 67 (16)
Specification of deferred tax:
Intangible assets (44) (84)
Current assets 43 (11)
Other liabilities 68 79
Deferred tax at 31 December 67 (16)
102 DSV Annual Report 2023 Parent Company financial statements 2023
Other notes
17. Share option schemes
DSV A/S has issued share options to key employees and members of the
Executive Board of the Company. Refer to note 6.2 to the consolidated
financial statements for a list of current incentive share option schemes
and a description of the assumptions used for the valuation of the share
options granted in 2023. Total costs recognised in 2023 for services re-
ceived but not recognised as an asset amounted to DKK 47 million (2022:
DKK 36 million). The average share price for options exercised in the
financial year was DKK 1,316.6 per share at the date of exercise.
18. Investments in Group entities
DSV A/S owns the following subsidiaries, all of which are included in the
consolidated financial statements:
Owner ship
2023
Owner ship
2022
Registered
office
Share capital
(DKKm)
DSV Road
Holding A/S
100% 100% Hedehusene,
Denmark
100
DSV Air & Sea
Holding A/S
100% 100% Hedehusene,
Denmark
50
DSV Solutions
Holding A/S
100% 100% Hedehusene,
Denmark
100
DSV Insurance
A/S
100% 100% Hedehusene,
Denmark
25
DSV Group
Services A/S
100% 100% Hedehusene,
Denmark
5
DSV FS A/S 100% 100% Hedehusene,
Denmark
1
Panalpina
Welttransport
(Holding) AG
100% 100% Basel,
Switzerland
19
Agility Logistics
International B.V.
100% 100% Rozenburg,
Netherlands
2,805
DSV Finance B.V. 100% 100% Venlo,
Netherlands
0
GIL International
Holdings I Ltd.
100% 100% Abu Dhabi,
UAE
7
Share option schemes at 31 December 2023
Scheme Exercise period
Executive
Board
Key
employees Total
Average
exercise price
per option
(DKK)
2019* 29.03.2022 - 27.03.2024 - 65,500 65,500 545.0
2020* 31.03.2023 - 31.03.2025 - 140,000 140,000 560.0
2021 01.04.2024 - 31.03.2026 168,750 234,425 403,175 1,325.0
2022 01.04.2025 - 31.03.2027 198,250 257,775 456,025 1,485.0
2023 01.04.2026 - 31.03.2028 198,750 280,175 478,925 1,485.0
Outstanding at 31 December 2023 565,750 977,875 1,543,625 1,319.4
Open for exercise at 31 December 2023 - 205,500 205,500 555.2
Life (years) 3.3 2.8 3.0 n.a.
Fair value (DKKm) 26 166 193 n.a.
* Share options granted in 2019 and 2020 are currently exercisable.
Outstanding share options
Executive
Board
Key
employees Total
Average
exercise price
per option
(DKK)
Outstanding at 1 January 2023 949,000 998,850 1,947,850 926.7
Granted 198,750 284,925 483,675 1,485.0
Exercised (582,000) (289,750) (871,750) 531.7
Options waived/expired - (16,150) (16,150) 1,430.5
Outstanding at 31 December 2023 565,750 977,875 1,543,625 1,319.4
Outstanding at 1 January 2022 762,750 920,148 1,682,898 972.4
Granted 198,250 274,075 472,325 1,485.0
Exercised (12,000) (164,573) (176,573) 514.1
Options waived/expired - (30,800) (30,800) 1,112.0
Outstanding at 31 December 2022 949,000 998,850 1,947,850 926.7
103 DSV Annual Report 2023 Parent Company financial statements 2023
19. Derivative financial instruments
In 2023, a gain on hedging instruments of DKK 176 million was recog-
nised in the statement of profit or loss (2022: gain of DKK 208 million).
In the same period, a gain of DKK 9 million was recognised relating to
assets and liabilities (2022: gain of DKK 810 million). For more infor-
mation on foreign currency risk hedging, refer to notes 4.4 and 4.5 to
the consolidated financial statements.
20. Financial risks
Financial risks of the Parent Company are handled within the risk man-
agement processes and framework of the Group. Reference is made to
note 4.4 to the consolidated financial statements.
The liabilities of DSV A/S fall due as listed in the adjacent table.
The analysis of expected maturity is based on contractual cash flows,
including estimated interest payments. No amounts have been discount-
ed, for which reason they cannot necessarily be reconciled to the related
items of the statement of financial position.
Hedging instruments (DKKm) Contractual value Maturity Fair value
Of which
recognised in the
statement of
profit or loss
Of which
recognised
in OCI
Currency instruments - 2023 11,244 2024-2026 46 45 1
Currency instruments - 2022 16,736 2023-2025 82 81 1
2023 2022
Financial liabilities (DKKm) 0-1 year 1-5 years > 5 years
Total cash
flows, incl.
interest 0-1 year 1-5 years > 5 years
Total cash
flows, incl.
interest
Loans, credit facilities and issued bonds 1,538 3,757 - 5,295 40 5,269 - 5,309
Other payables 631 - - 631 964 - - 964
Payables to Group entities 23,057 1,064 16,984 41,105 35,047 583 17,024 52,654
Total 25,226 4,821 16,984 47,031 36,051 5,852 17,024 58,927
104 DSV Annual Report 2023 Parent Company financial statements 2023
20. Financial risks – continued
Derivative financial instruments
DSV has no financial instruments measured at fair value based on level 1
input (quoted active market prices) or level 3 input (non-observable mar-
ket data). Financial instruments are measured based on level 2 input (input
other than quoted prices that are observable either directly or indirectly).
The fair value of currency derivatives is determined based on generally
accepted valuation methods using available observable market data.
Calculated fair values are verified against comparable external market
quotes on a monthly basis.
Issued bonds
The fair value of issued bonds measured at amortised cost is within level
1 of the fair value hierarchy.
2023 2022
Carrying amount (DKKm) Carrying amount Fair value Carrying amount Fair value
Financial assets:
Currency derivatives 49 49 97 97
Receivables from Group entities 40,059 40,059 42,826 42,826
Other receivables 529 529 620 620
Cash and cash equivalents 1,280 1,280 6,673 6,673
Financial assets measured at amortised cost 41,868 41,868 50,119 50,119
Financial liabilities:
Currency derivatives (3) (3) 15 15
Issued bonds measured at amortised cost 5,202 4,898 5,186 4,649
Overdraft and credit facilities 14 14 206 206
Payables to Group entities 38,636 38,636 51,103 51,103
Other payables 631 631 964 964
Financial liabilities measured at amortised cost 44,483 44,179 57,459 56,922
Receivables from Group entities, other receivables, payables to Group
entities and other payables
The carrying amount of receivables and payables is not considered to
differ significantly from the fair value.
Overdraft and credit facilities
The carrying amount of overdraft and credit facilities measured at amor-
tised cost is not considered to differ significantly from the fair value.
Cash and cash equivalents
The carrying amount of cash and cash equivalents is not considered to
differ significantly from the fair value.
21. Related parties
DSV A/S has no related parties with control of the Group and no related
parties with significant influence other than key management personnel
– mainly in the form of the Board of Directors and Executive Board.
Related party transactions
Board of Directors and Executive Board
No transactions with the Board of Directors and Executive Board were
made in the 2023 financial year other than ordinary remuneration and ter-
mination benefits, as described in notes 6.2 and 6.3 to the consolidated
financial statements.
Intra-group transactions
No intra-group transactions were made in 2023 other than as stated in
the notes to the Parent Company financial statements.
22. Contingent liabilities and security for debt
Contingent liabilities
DSV A/S and the other Danish Group entities are registered jointly for VAT
purposes and are jointly and severally liable for the VAT liabilities. DSV A/S
is assessed jointly for Danish tax purposes with the other domestic Group
entities. DSV A/S is the administration company of the joint taxation ar-
rangement and is under an unlimited and joint liability regime for all Danish
tax payments and withholding taxes on dividends, interest and royalties from
the jointly taxed entities. Income tax and withholding tax payables under the
joint taxation arrangement amounted to DKK 11 million (2022: payable of
DKK 168 million), which is included in the financial statements of DSV A/S.
Parent Company gurarantees
DSV A/S has provided guarantees for subsidiaries’ outstanding balances with
banks and liabilities to leasing companies, suppliers and public authorities,
etc., in the amount of DKK 8,460 million (2022: DKK 12,424 million). DSV
A/S has provided guarantees for subsidiaries’ obligations towards joint ven-
tures of USD 2,450 million corresponding to DKK 16,522 million (2022:
DKK 0 million). Moreover, DSV A/S has issued several declarations of intent
relating to outstanding balances between subsidiaries and third parties.
105 DSV Annual Report 2023 Parent Company financial statements 2023
