DSV Annual Report 20 21
Keeping supply
chains flowing in
a world of change
DSV A/S
Hovedgaden 630
2640 Hedehusene
Denmark
CVR no. 58 23 35 28
1 January – 31 December 2021
Tel. +45 43 20 30 40
CVR no. 58 23 35 28
DSV is one of the world’s leading freight forwarders. We help
companies connect with the world and ensure smooth and
ecient storage and transport of their goods. By road, sea and air.
We keep supply chains flowing – from shipper to customer doorstep
– 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 greener.
That is how we will help to shape a sustainable future.
Welcome to our Annual Report 2021.
Delivering sustainable growth
Annual Report for the year ending
31 December 2021 (45th financial year).
Published 9 February 2022.
Contents
Management’s
commentary
Introduction
Letter from our CEO................................ 4
Highlights 2021.................................... 6
GIL - our latest acquisition .......................... 8
Five-year overview................................. 9
Strategy and financial targets
Our corporate purpose and strategy ................. 10
Sustainable logistics for a fast-changing world ........ 12
Our business model................................ 14
Industry and market trends ......................... 15
A responsive approach to technology and digitalisation .. 17
Outlook for 2022 and long-term financial targets ..... 18
Capital structure and allocation ..................... 19
Page 8
In August, we acquired
Agility's Global Integrated
Logistics business
Financial and non-financial performance
Financial review .................................. 20
Non-financial review...............................23
Air & Sea ......................................... 25
Road ............................................ 28
Solutions ......................................... 30
Corporate governance and
shareholder information
Risk management ................................. 32
Corporate governance ............................. 38
Board of Directors................................. 41
Shareholder information............................ 42
Other information
Quarterly financial highlights ........................ 44
Financial
statements
Consolidated financial statements
Income statement................................. 46
Statement of comprehensive income ................ 46
Cash flow statement............................... 47
Balance sheet..................................... 48
Statement of changes in equity ..................... 49
Notes to the consolidated financial statements........ 50
Definition of key figures and ratios................... 85
Group company overview .......................... 86
Statements
Management’s statement .......................... 94
Independent Auditor’s reports ...................... 95
Parent Company financial statements
Parent Company financial statements ................ 99
Page 13
In 2021, we launched a
new industry-leading
Green Logistics product
Page 18
Read about our
revised long-term
financial targets
3 DSV Annual Report 2021 Contents
To say 2021 was a turbulent year would be an understatement. The
continuing repercussions of COVID-19 dominated and aected consumer
behaviour, supply chains, logistics – and our working lives. In 2021, we
also took another step forward in our continued growth strategy with the
acquisition of Global Integrated Logistics (GIL) from Agility. In the middle
of all this change and extraordinary disruption, we performed well
– continuing to help customers keep their supply chains flowing.
Letter from our CEO
Keeping supply
chains flowing
in a world of
change
4 DSV Annual Report 2021 Introduction
We understand
what our
customers are
going through,
and we will keep
finding solutions.
Strong financial results
2021 was a successful year for the DSV Group. Our revenue
amounted to DKK 182.3 billion (+58.6%), gross profit was
DKK 37.6 billion (+32.7%) and operating profit before special
items was DKK 16.2 billion (+71.3%).
Our adjusted free cash flow was DKK 8,659 million. We dis-
tributed DKK 18,761 million to shareholders in 2021 via share
buybacks and dividends. And the DSV share price rose 49.8%.
A perfect storm
In the past year, we saw several unprecedented factors con-
spiring across global supply chains.
Beyond the continuous pandemic lockdowns and restrictions,
a surging demand for goods strained transport capacity,
equipment, infrastructure and labour across the supply chain.
Bottlenecks persist and have led to record-high freight rates
in 2021. These disruptions continue to impact the global
economy, raising dicult questions for the logistics industry
and exposing global supply chain vulnerabilities.
There is no quick fix when it comes to solving these challen-
ges. It will call for concerted collaboration between public and
private sectors. We understand what our customers are going
through, and we will keep finding solutions, optimising opera-
tions and mitigating all the risks we can to keep supply chains
running smoothly.
DSV is in a good position to ride out the storm. We have solid
relationships with carriers. We have strong freight forwarding
capabilities and skilled people who take immediate action
when needed. We have worked to develop our digital pro-
duction platforms and ensure more transparent supply chains.
We have modern, automated warehouses that can handle
the larger inventories that come with increasing demand for
e-fulfilment or increasing stock reserves.
Growing through acquisition
In 2021, we completed the DKK 30 billion acquisition of GIL.
This was a major milestone in our growth journey. Through this
acquisition, we expanded our geographical reach – particularly
in Asia and the Middle East – and improved our network and
services. Today, we are in a stronger position than ever to
support customers and grow our business with confidence.
Our teams are now bringing GIL into the DSV family, con soli-
dating operations, IT, administration and logistics. While we
integrate we make sure day-to-day business and service levels
stay high for our customers, and we strive to keep momen-
tum and progress in our other key strategic projects within IT
and business development.
Our GIL integration plan is on track, and we expect to com-
plete it in Q3 2022.
Trading on nature’s terms
Today and tomorrow, sustainability should underpin every as-
pect of our business. The supply chains we support have to
significantly decarbonise if they are to keep flowing sustain-
ably, and DSV must play an active role in helping our industry
shape a genuinely sustainable future.
We have begun the long journey to achieve our science-
based targets for cutting CO
2
emissions. In 2021, we were
proud to receive the Danish Climate Strategy Award in recog-
nition of our ambitious goals and the actions we have already
taken to reduce our scope 1, 2 and 3 emissions.
We use this recognition as motivation to handle the significant
tasks ahead of us – tasks that we can only solve in close co-
operation with our customers, suppliers, authorities and other
important stakeholders. Cooperation, innovation and regulation
are all needed to get us all the way to the target.
Last year, we launched a set of services under our new Green
Logistics banner. The services range from CO
2
reporting and
supply chain optimisation to emission compensation and sus-
tainable fuel solutions. We have designed each solution to cut
our customers’ supply chain carbon footprints and at the same
time reduce our own scope 3 emissions.
Always a people-centred business
Finally, I want to acknowledge the huge contribution of our
employees and thank them for their resolute eorts in very
dicult circumstances. 2021 taught us many valuable lessons;
most importantly, it reminded us that freight forwarding will
always be a people-centred business – supported by digital
tools and a flexible approach to how we operate.
Whatever market challenges persist next year, we are optimistic
about the future – and we are committed to keep supply chains
flowing in this world of change.
Jens Bjørn Andersen
Group CEO, DSV A/S
5 DSV Annual Report 2021 Introduction
Highlights
Group results
EBIT before special items
In 2021, DSV's operating profit before special items was DKK
16,223 million, up DKK 6,703 million from 2020. The development
was driven by a 32.7% increase in gross profit, strong cost man-
agement and our acquisition of Global Integrated Logistics (GIL).
Adjusted free cash flow
For 2021, adjusted free cash flow was DKK 8,659 million
compared to DKK 8,746 million last year. Adjusted free cash
flow was impacted positively by higher EBIT before special
items but negatively by higher net working capital.
ROIC before tax
The return on invested capital was 19.6% in 2021 compared
to 14.3% for 2020. This increase can mainly be attributed to
higher operating profit before special items.
2021
Actual
19.6%
Gross profit
DKK 37,615 million
+32.7%
Air & Sea
%
Air & Sea
%
Road
%
Road
%
Solutions
%
Solutions
%
EBIT before special items
DKK 16,223 million
+71.3%
2020
Actual
14.3%
2021
Actual
8,659
2020
Actual
8,746
2021
Actual
2021
Outlook
15,250
– 16,000
16,223
2020
Actual
9,520
of total
of total
of total
of total
of total
of total
growth in 2021 growth in 2021
6 DSV Annual Report 2021 Introduction
EMEA
Gross profit:
DKK 21,739 million
58%
of total
EBIT before special items:
DKK 7,707 million
47%
of total
APAC
Gross profit:
DKK 7,675 million
20%
of total
EBIT before special items:
DKK 4,473 million
28%
of total
AMERICAS
Gross profit:
DKK 8,199 million
22%
of total
EBIT before special items:
DKK 4,042 million
25%
of total
Air & Sea
Our Air & Sea division achieved 42.3% increase in gross profit in
2021, driven by higher activity and extraordinary market condi-
tions. The growth in EBIT before special items was supported
by a record-high conversion ratio and the GIL acquisition.
EBIT before special items:
DKK 12,768 million
Road
The increase in EBIT before special items for our Road division
was driven by a 15.1% increase in gross profit and an improved
conversion ratio. All regions contributed to the growth, and the
division benefitted from its strong network and market position.
EBIT before special items:
DKK 1,857 million
Solutions
The division achieved growth across most industries and a 23.9%
growth in gross profit in 2021. The increase in EBIT before special
items was driven by a record-high utilisation of warehouse capac-
ity and a continued focus on cost optimisation. The acquisition of
GIL added approximately 25% extra capacity to the division.
EBIT before special items:
DKK 1,775 million
Global
footprint
+51.3%
+32.6%
+83.5%
7 DSV Annual Report 2021 Introduction
By adding GIL's network and competencies
to DSV's, we strengthen our ability to keep
supply chains flowing – especially in the
fast-growing markets of the Middle East
and APAC. We also boost our competitive-
ness mainly in our Solutions and Air & Sea
divisions.
As a combined company, we are one of the top three freight forwarders
on the globe, with a workforce of more than 75,000 employees. The
acquisition of GIL also brings extra warehousing capacity of more than
1.4 million m² (mainly in the Middle East and APAC), which will signifi-
cantly strengthen our Solutions division.
The legal and operational integration of GIL into our existing structure is
well underway. We work to maintain high customer service levels during
the transition. We expect to complete the integration in Q3 2022.
A strong contribution to earnings
We estimate that bringing GIL into the DSV family will increase annual
revenue by more than 20%. Once fully integrated in 2023, GIL is expect-
ed to contribute around DKK 3,000 million to combined operating profit
(EBIT) before special items annually.
With each of our acquisitions, DSV has come out a stronger company,
better able to keep supply chains moving reliably and predictably –
regardless of the pace of change in the industry and wider world.
DSV and Agility's Global Integrated Logistics business (GIL)
GIL – our latest
acquisition
Joining forces for more integrated global supply chain solutions
Before we acquired GIL, it was a leading global transport and logistics
provider with a strong footprint in emerging markets and particular
expertise in air and sea freight-related services. GIL had over 17,000
employees and operations in more than 60 countries worldwide.
DSV
Employees
Revenue (DKKm)
GIL
58,000
165,000
17,000
35,000
Air freight (tonnes)
1,300,000 300,000
Sea freight (TEU)
2,300,000 600,000
Logistics centres (m
2
)
6,000,000 1,400,000
8 DSV Annual Report 2021 Introduction
Five-year overview
Ratios 2021 2020 2019 2018* 2017*
Financial ratios (%)
Gross margin 20.6 24.6 25.1 22.1 22.2
Operating margin 8.9 8.2 7.0 6.9 6.5
Conversion ratio 43.1 33.4 28.0 31.2 29.4
Eective tax rate 24.5 24.3 25.8 23.3 20.7
ROIC before tax 19.6 14.3 13.4 26.7 23.4
Return on equity 18.4 8.8 11.6 27.2 21.1
Solvency ratio 45.9 49.2 50.7 37.5 38.6
Gearing ratio 1.4 1.3 1.8 0.9 1.0
Share ratios
Earnings per share of DKK 1 49.3 18.7 18.7 22.0 16.0
Diluted adjusted earnings per share of DKK 1 50.9 26.5 22.1 22.1 18.4
Number of shares issued (‘000) 240,000 230,000 235,000 188,000 190,000
Share price at year-end (DKK) 1,527.5 1,020.0 767.8 429.2 488.6
Proposed dividend per share (DKK) 5.50 4.00 2.50 2.25 2.00
Financials 2021 2020 2019 2018* 2017*
Results (DKKm)
Revenue 182,306 115,932 94,701 79,053 74,901
Gross profit 37,615 28,534 23,754 17,489 16,605
Operating profit before amortisation, depreciation
(EBITDA) before special items 20,417 13,559 10,292 6,212 5,664
Operating profit (EBIT) before special items 16,223 9,520 6,654 5,450 4,878
Special items, costs 478 2,164 800 - 525
Net financial expenses 841 1,729 858 249 556
Profit for the year 11,254 4,258 3,706 3,988 3,012
Adjusted earnings 11,847 6,146 4,456 4,093 3,484
Cash flow (DKKm)
Operating activities 12,202 10,276 6,879 4,301 4,664
Investing activities 420 (556) 1,371 (444) (325)
Free cash flow 12,622 9,720 8,250 3,857 4,339
Adjusted free cash flow 8,659 8,746 3,678 3,916 4,835
Share buyback 17,841 5,031 4,888 4,161 1,559
Dividends distributed 920 588 423 380 342
Cash flow for the year 3,942 2,721 766 (143) (376)
Financial position (DKKm)
DSV A/S shareholders’ share of equity 74,103 47,385 49,430 14,561 14,835
Non-controlling interests 175 (88) (111) (29) (26)
Balance sheet total 161,395 96,250 97,557 38,812 38,388
Net working capital 8,031 2,701 3,125 1,767 1,410
Net interest-bearing debt (NIBD) 29,245 18,189 18,355 5,831 5,575
Invested capital 101,231 64,285 68,595 20,381 20,391
Gross investment in property, plant and equipment 1,180 1,121 1,000 720 620
ESG data 2021 2020 2019 2018 2017
CO
2
e (g/tonne-km) - Air transport 694.4 704.0 718.2 728.0 751.0
CO
2
e (g/tonne-km) - Sea transport 6.1 6.2 6.4 7.0 7.3
CO
2
e (g/tonne-km) - Road transport** 92.4 92.8 93.2 96.5 97.4
Lost Time Injury Frequency Rate 4.5 6.7 5.0 4.6 4.2
Lost workdays due to lost time injury 61.0 78.8 97.5 98.0 81.2
Gender diversity (%) (female/male) 38/62 38/62 39/61 38/62 39/61
Employee turnover ratio (adjusted for synergies) 21.9 20.5 21.1 20.1 16.4
Employees (FTE) 77,958 56,621 61,216 47,394 45,636
* The implementation of IFRS 16 Leases as of 1 January 2019 had a material impact on the financial statements and key ratios for
2019 onwards. Comparative figures for 2017-2018 have not been restated.
** Comparative figures have been restated, as our method for calculation and data transparency has improved.
For a definition of financial key figures and ratios, please refer to page 85. For definition of ESG data, please refer to Sustainability Report.
9 DSV Annual Report 2021 Introduction
People
Customers
Operational
excellence
Sustainable
growth
Our corporate
purpose and strategy
Our four strategic
focus areas
Our corporate purpose
COVID-19 aected our company and our industry in several ways.
A positive eect was that it shone a light on the importance of our
commitment – now clearly articulated in our new corporate purpose:
Keeping supply chains flowing in a world of change.
We are proud to be part of the critical infrastructure that enables the
world to trade and our customers, employees, shareholders and societies
at large to grow and prosper. This was especially true during the toughest
times of the pandemic in 2020 where we played our part in making sure
PPE reached the people who needed it, and in 2021 where we took part
in vaccine distribution.
But it is also true for the everyday transport services our customers require.
In 2021, we defined our corporate
purpose: K eeping supply chains flowing
part of the critical infrastructure that
enables our customers, employees,
shareholders and societies at large
to grow and prosper.
We are there for our customers. To help them navigate complex supply
chains and logistics markets ravaged by disruption and volatility. And to
provide greener and more ecient transport solutions through better
planning, new technologies and innovative solutions.
Focusing on sustainable growth
We strive to help our customers, employees, shareholders and the so-
cieties in which we operate to grow. This way we create sustainable
growth for DSV.
We help our customers grow. By providing reliable, cost-eective services
with as little environmental impact as possible, we help our customers de-
velop and grow their business. Our general logistics expertise and indus-
try-specific solutions for Auto motive, Industrial, Chemicals, Retail & Fashion,
Healthcare, Technology and Renew able Energy help customers succeed.
In 2021, DSV won CX Network’s award for Best Customer Centric
Culture for the way we embedded our Customer Success Programme
into every part of the organisation. The jury cited our combination of
people and customer strategies to drive a genuinely customer-first
culture change in our business.
We help our employees grow. Our employees are the heart of our busi-
ness and responsible for the long-term success of our company. DSV
employs more than 75,000 people worldwide – from oce workers
to warehouse operatives and truck drivers. Regardless of function or
position, we respect our employees’ rights and work to provide them
with a safe, healthy and motivating workplace where everyone has the
chance to grow and develop their talent.
To help our employees give their best, we give them the right tools, train-
ing and conditions. The pandemic showed how quickly transport markets
could be disrupted. It was the skills and knowledge of our experienced
teams that kept the supply chains flowing.
As for any company, hiring and keeping talented employees is critical to
our business. To attract, motivate and retain the best of them, we always
seek to recruit new leaders internally, and we provide career-advancing
opportunities through our DSV Academy as well as our talent manage-
ment and global mobility programmes.
10 DSV Annual Report 2021 Strategy and financial targets
Having a diverse workforce, with people from dierent back-
grounds all able to realise their potential, brings great advan-
tages. It creates an inclusive and responsive culture, makes our
workplaces more dynamic, and ultimately leads to better business
decisions. In 2021, all managers across the Group completed a
mandatory e-learning programme, ensuring that they are famil-
iar with our policy and initiatives within inclusion and diversity.
We grow shareholder value. Creating profitable growth means
balancing solid, above-market organic growth and an active
acquisition strategy. Measured by revenue and profit margins,
we are one of the industry’s largest and most profitable play-
ers. This gives us a strong market position. It is also a founda-
tion for continuously growing our business above market level
everywhere we operate.
Strong footholds with large, global customers as well as
in the SME segment give us diverse and resilient revenue
streams. And the Group’s focus (and track record) on mergers,
acquisitions and company integrations remains a key part of
our strategy. In 2021, our acquisition of Global Integrated
Logistics (GIL) from Agility added scale and capabilities to our
network across more than 60 countries.
We help societies grow. We do business with integrity,
respecting the dignity and rights of individuals in all cultures
and countries. We believe in giving back to the communities
we operate in, while finding new ways of reducing our opera-
tional environmental footprint.
We are a United Nations Global Compact signatory, pledging
to follow its 10 principles. Since 2015, we have also sup-
ported the UN Sustainable Development Goals – identifying
and working systematically with nine SDGs in the areas our
business aects most.
Delivering operational excellence
World trade drives world prosperity, but seamless trade is not
a given. Through our persistent focus on transparency, pro-
ductivity and scalability, we support more ecient global trade
flows for all businesses.
Based on clear targets for each business area, we standardise
our service catalogues and workflows. This boosts our produc-
tivity and guarantees high quality services to customers – and
it enables us to implement ecient operational systems and
benefit from automation and new technology.
Working according to the principle of one main system per
business area, we run a consolidated, standardised and scalable
IT landscape. Where available, we use standard o-the-shelf
IT systems. We take a systematic approach to prioritising data
quality and security.
We maintain a flat, locally empowered organisation, firmly an-
chor ed in local markets and working closely with local customers.
By constantly measuring service quality, productivity and financial
performance, we make sure our leaders have good, transparent
insights for decision making. We believe in local ownership and de -
cisions based on sound business acumen, supported by solid data.
As one global company, we aim to benefit from scale where
we can. We work together as one global network, and we
have centralised selected activities. This is reflected in our
international shared service centres and group functions which
among others include Property, Insurance and Procurement.
Purpose and strategy working together
For each of our main business areas, we select strategic pro-
jects and prepare separate business plans for each and priori-
tise how we roll them out in a group-wide road map.
The DSV Group Executive Committee sets priorities, objec-
tives and success measures for all our projects. This way, we
ensure that the Group sticks to the long-term plans, adapts to
market changes and takes advantage of new technologies and
emerging opportunities.
Each of our key strategic projects must support one or more
of our strategy focus areas: Sustainable growth, Operational
excellence, Customers and People.
In 2021, some of the biggest projects were:
• M&A – mainly acquiring and integrating GIL
• the Road Way Forward project – a new digital
production system and standardised workflows
to support our European Road network
• further developing our digital infrastructure and
workflows – including our advanced integration and
hybrid computing platforms
• our digital customer interaction capabilities
• developing our physical infrastructure and workflows
– developing large and ecient warehouses,
warehouse automation, terminals and oces
• developing and launching Green Logistics services
We will continue to focus on these areas in 2022.
We describe key projects for each of our divisions in the
divisional reviews on pages 25-31. And you can read about
our 2026 revised financial targets on page 18.
We believe in
giving back to
the communi-
ties we operate
in, while finding
new ways of
cutting our
operational
environmental
footprint.
11 DSV Annual Report 2021 Strategy and financial targets
Sustainable
logistics for a
fast-changing
world
ESG strategy anchored at the top
Our ESG work is anchored at the top. In close cooperation with the
Executive Board, the Board of Directors is responsible for setting the
direction, shaping the strategy and determining our targets for each
area. In this work, we are guided by our commitment to fulfilling and
promoting the UN 2030 Sustainable Development Goals (SDGs) and
the United Nations Global Compact's Ten Principles.
As the world’s third-largest transport
and logistics company, DSV strives to
hold a strong and responsible position
on environmental, social and governance
(ESG) issues. These duties include
helping combat climate change by
moving the industry towards more
sustainable practices.
Environment
We have a responsibility to drive our own
operations and the industry towards
minimising the environ mental impact of
transport and logistics services.
Governance
Business ethics. We do business
with integrity, respecting dierent
cultures and the dignity and rights
of individuals in all countries.
Responsible procurement. We
ensure our suppliers meet our high
standards, service quality and price
requirements, and demonstrate
an unders tanding of our corporate
sustainability objectives.
Social
Our people. We provide safe
and healthy workplaces, and we
strive to attract, motivate and
retain talented people by of-
fering responsibility, empower-
ment and growth opportunities.
Community engagement.
We engage with and support
the communities we do business
in, and we use our expertise
to support people in need.
Our ESG strategy
Employee engagement
Diversity and gender equality
Community engagement
Health and safety
Human rights
Labour rights
CO
2
emissions
Waste management
and recycling
Product and service
innovation
Anti-corruption
Conflict of interest
Anti-competitive behaviour
Supplier engagement
and conduct
Data privacy
Taxes
12 DSV Annual Report 2021 Strategy and financial targets
On the other hand, climate changes may also provide business
opportunities if we as a company are able to lead our industry
and provide new low-emission transport services.
The uncertainty related to dierent future scenarios for trans-
port is high, but, based on our current assessment, we do not
expect a significant negative impact on our business opera-
tions as a direct result of climate change.
Social and governance factors
While the environment is at the top of the global ESG agenda
– for good reasons – we maintain our focus on social and
governance factors as reflected in our ESG strategy. In short,
we aim to do business with integrity and provide safe and
healthy workplaces, where our colleagues all over the world
are respected and given equal opportunities. We apply the
same policies globally, and when we acquire companies, we
ensure that the DSV standards are implemented across
the organisation.
ESG value from acquisitions
Our M&A strategy does not only contribute to DSV’s fin-
ancial results. We get new inspiration and capabilities on
board across many areas; Panalpina took our approach to
the environment and SBTi to a new level, and GIL adds a
strong community engagement programme, which we will
take inspiration from.
When we integrate, we always aim to take the best of both
worlds in all parts of the business. Long term, this is the best
way to achieve sustainable growth and value creation for all
stakeholders.
We have defined strategies and specific targets for the three
areas: environment, social and governance. As a global com-
pany, we rely on strong alignment throughout the organisa-
tion – from top management to divisions and countries
– in order to realise the strategy for each of the areas.
Developing partnerships
We value open and honest communication with our em-
ployees, customers, suppliers and investors on ESG
issues. As part of our strategic management, we regularly
engage in dialogue with our key stakeholders to ensure that
we consider their primary concerns and listen to their input
and good ideas.
We have entered into several partnerships, both with organi-
sations in our industry and other areas, in order to cooperate
and make progress within dierent areas. Especially within
the environmental area, we acknowledge that we cannot
achieve our targets alone – we have to engage in partner-
ships with customers, suppliers and organisations, such as
Clean Cargo Working Group (CCWG), GoodShipping and
Eco-Skies Alliance.
The journey towards greener logistics
The transport and logistics industry is the world’s third-largest
source of greenhouse gas emissions. So the whole industry
must work together and play an active role in reducing its CO
2
footprint. We are working on a number of dierent initiatives
to reduce both our internal (scope 1 and 2) emissions and,
not least, our scope 3 emissions from transports carried out
by our suppliers.
With our Green Logistics services we have taken the first
steps, but the journey towards greener logistics is long. We
depend on new technologies and alternative fuels becoming
available, and we are involved in several partnerships to drive
this agenda forward. At the same time, we will also help our
customers to optimise their current supply chains; significant
reductions can be achieved through better logistics planning.
We continue to work towards reducing our emissions, fol-
lowing the Science Based Targets Initiative (SBTi). The tar-
gets aim to reduce our CO
2
emissions by 2030 from a 2019
baseline year. In 2021, we completed our acquisition of GIL,
and because of the scale of this business transaction, we will
in 2022 recalculate the emissions baseline to reflect our
larger business. Throughout this process, we plan to evaluate
how best to align with the 1.5⁰C warming scenarios and net
zero greenhouse gas emissions target.
Managing the risk from climate change
The long-term negative eects of climate change have the
potential of significantly impacting our industry. Therefore, it is
a risk that we monitor closely. We have implemented the Task
Force on Climate-related Financial Disclosures (TCFD) frame-
work to help us identify risks and opportunities from climate
changes which can impact us.
The key risks identified are related to possible changes to global
supply chains and the demand for specific transport services
(e.g. air freight), implementation of new technology, implemen-
tation of taxation on carbon emission, changes to transport lanes
because of extreme weather and potential reputational damages
if we as a company do not act against climate changes.
As part of our
strategic
management,
we regularly
engage in
dialogue with
our key
stakeholders.
13 DSV Annual Report 2021 Strategy and financial targets
Our business
model
Transport
Subcontracted
From shipper
Our key resources
People — IT systems — Industry know-how — Standardised global workflows — Carrier relations — Global network with local presence
Freight forwarding services Logistics and distribution
Shipment booking — Pick-up — Warehouse — Documentation & customs clearance
Cargo consolidation — Purchase order management
Cross-dock terminal — Insurance
Warehousing — Picking/packing — Cross-dock terminal — Deconsolidation
Labelling, configuration, testing — Distribution — Documentation & customs clearance
E-commerce fulfilment — Carbon emission reports — Supply chain innovation — 4PL
To consignee
The right resources to keep supply chains moving
Our business model is asset light. This means we can quickly scale
activities to match changes in market demand. We can also pick the
best suppliers for any service – depending on factors like reliability,
available capacity, transit time, sustainability factors and price.
We believe we have a unique combination of skilled people with industry
know-how, advanced IT systems, modern warehouses and terminals,
strong carrier relationships and our global network across 90 countries.
This blend helps us meet the needs of our customers across the world.
DSV is a global business – but always close to the local market. Working
with container carriers, airlines, road hauliers and railway operators, we
can move goods to wherever they are needed. And being one of the
largest buyers globally means we combine keen pricing and strong,
long-standing relationships with carriers.
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. These include digital tools for
purchase order management, booking and track-and-trace, green logis-
tics, cargo consolidation, insurance, customs clearance and pick-and-pack.
Our highly digitalised operation gives us competitive advantage. We inte-
grate many of our IT systems with both customers and suppliers. This
helps us keep entire supply chains running transparently; it also helps us
to find new ways of making them flow more seamlessly.
To respond to the increasing complexity and time-sensitivity of global
supply chains, we have in recent years added Lead Logistics (4PL) and
Supply Chain Innovation to our oerings. Together with a bigger focus on
sustainable logistics, our market and services are continuously developing.
DSV is one of the world’s biggest global freight
forwarders. We ship freight by land, sea and
air – and provide contract logistics too. From
shipper to consignee, our business model
keeps the entire supply chain flowing.
14 DSV Annual Report 2021 Strategy and financial targets
Source: Journal of Commerce and DSV estimates.
■ DHL Logistics
■ Kuehne + Nagel
■ DSV+GIL
■ DB Schenker Logistics
■ Nippon Express
Top five
Market share
Top five global freight forwarders
and market share based on
2020 revenue.
Customers are adapting to dierent conditions. They wanted more trans-
parent supply chains before the pandemic and that need has only increased
– especially when it comes to early warnings on delays. They are also mak-
ing contingency plans to protect themselves against future risks to their
own supply chains. Diversifying outsourced production between China and
other East Asian countries is one example. Storing extra buer stock at dis-
tribution centres is another. But with more countries and locations involved,
complexity goes up – which oers new opportunities for freight forwarders
to help with things like purchase order management and customs clearance.
E-commerce continues to grow as lockdowns have accelerated existing
shis in consumers’ buying behaviour. More people switched from brick-
and-mortar to e-commerce, sending activity in fulfilment centres and
last-mile deliveries skyward.
Logistics companies who have adapted to these disruptions will be best
placed to succeed in this market. At DSV, we are responding by continu-
ously optimising our processes and operations, supporting them with the
latest digital technology to make sure we are able to meet the changing
needs of our customers.
Increasing digitisation of logistics
Over the past two decades, the speed of introducing digital technologies
has increased – also in logistics. This is helping providers respond faster
to changing customer needs and a rapidly shiing supply chain landscape.
To take proper advantage of new technologies, logistics providers are
creating digital road-maps and strategies, which include integration and
data exchange across dierent supply chain parties: shippers, freight for-
warders, carriers and authorities.
DSV believes that further digitalisation is crucial to the long-term evolu-
tion of the industry. We also believe that the use of technology has the
greatest impact when implemented together with standardised global
processes and systems and a relentless focus on high data quality.
Industry and
market trends
By understanding market trends in our own
industry – and in others that aect us – we can
take advantage of opportunities as they arise
and act quickly to reduce risks.
A fragmented competitive landscape
We are one of the top three global freight forwarders in our industry, with
a market share of roughly 4%. Together, the top 20 forwarders have an
estimated global market share of 30-40%. The rest of the market con-
sists of a long tail of smaller regional and local freight forwarders.
The mix of industry fragmentation and service standardisation creates a
competitive pricing landscape. But because of our scale, global networks,
better IT systems and service levels, big freight forwarders like DSV are in
a good position to consolidate the market and take market share from
smaller players. Our acquisition track record is a strong example of this,
and we expect the consolidation trend to prevail in the coming years.
The impact of the pandemic on global
supply chains and e-commerce
COVID-19 is still aecting the logistics industry. The last two years have
highlighted vulnerabilities – particularly when it comes to global supply
chains – as well as opportunities to do things better. Both will have
far-reaching consequences for the way our industry develops.
60%
20%
6%
4%
4%
3%
3%
Others
■ Top 6-20
■ Others, estimated
15 DSV Annual Report 2021 Strategy and financial targets
Digital start-ups
In recent years, a number of purely digital forwarders have entered the
industry. These organisations tend to oer a simple, standardised range
of services, mainly focused on online price quoting and booking.
Digital forwarders have a high level of digital capabilities but a low level
of logistics capabilities, such as operational expertise, global networks,
scale, physical infrastructure and carrier relationships. Their challenge is
competing against established freight forwarders that have existing
logistics capabilities and – as with DSV – a clear roadmap to further
enhance digital capabilities.
The strategy of asset owners
While many large ocean carriers maintain a consistent strategy and mar-
ket focus, some have changed track in recent years.
They now aim to provide door-to-door transport services, air and over-
land transport as well as ocean freight. This has created scenarios where
they are both suppliers and competitors to freight forwarders.
Driven by 2021’s extraordinary market conditions, we have seen exam-
ples of shippers moving business away from forwarders and directly to
ocean carriers. But we have also seen the opposite. In general, we are
confident that the logistics capabilities, scale and buying power of large,
established forwarders will keep demand for our services high and
continuing to grow.
More centred on ESG and sustainability
Sustainability has become a critical topic across all industries, and ours is no
exception. As a major contributor to carbon emissions, the transport and
logistics industry must develop more environmentally sustainable business
practices. It has to drive change from within – supported by stakeholders
across the supply chains and in line with government regulation.
As well as environmental standards, social, labour and governance frame-
works are increasingly central to informing strategic decisions and influ-
encing how organisations operate.
At DSV, we are actively embedding sustainable practices into dierent
aspects of our business. This is reflected in the way we design our oces
and warehouses and, not least, in our suite of Green Logistics services
launched in 2021.
Understanding the pace of market growth
There were relieving signs of global economic recovery in 2021, with
markets bouncing back from the impact of COVID-19.
The transport and logistics industry is still aected by congestion and
COVID-related disruption, but underlying demand has been solid in most
markets and the outlook for 2022 is positive.
In recent years, global trade growth has gone hand-in-hand with
Gross Domestic Product (GDP) growth, and we think this correlation
will continue.
Based on our strong market position, we have a clear ambition to out-
perform underlying market growth in the coming years.
Politics and trade flows
Global and local trade flows are impacted by politics. Across the globe,
we continue to see new examples of protectionism, changes to taris
and trade regulation, trade restrictions, embargoes and new security
measures.
Brexit is an obvious example. At the start of 2021, the UK le the EU.
This has had a big impact on every aspect of UK supply chains and for all
its trading partners. Import regulation, customs and tari changes have
brought challenges for logistics providers, and at DSV we have added
more sta and implemented systems to handle the changes. This way we
have successfully helped our customers navigate the changes in the UK.
Ultimately, we expect the benefits of global supply chains to win out
over protectionism. There will be examples of more local production, but
we believe globalisation is here to stay. And we have a strong compliance
setup to help customers prepare for and adapt to market changes.
Logistics
capabilities
Digital
capabilities
Logistics versus
digital capabilities
Digital
Other
forwarders
DSV
Established
16 DSV Annual Report 2021 Strategy and financial targets
Conversational
artificial
intelligence
Adaptable IT for a flexible future
To fulfill our strategy and react quickly to our dynamic markets, we have a
strong, scalable IT infrastructure. We take a hybrid computing approach
blending on-premises and cloud-based infrastructure across operational
systems, customer integrations and engagement services.
During 2021, we introduced a new advanced integration platform which
enables us to connect our production systems with the cloud, ensuring
that data can be delivered on time and accurately, supporting complex
workflows and expanding data volumes.
We plan on developing a range of digitalisation tools on this foundation.
The first was a booking transparency tool that went live in 2021. This
allows us to systematically measure booking data quality and work with
customers to enhance it.
Providing supply chain visibility
Digitalisation is changing the way we interact with customers and ven-
dors through every phase of a shipment. From quote, purchase order,
booking, shipment tracking and status alerts to final bills and KPI reports.
Our digital tools must provide supply chain visibility to our customers –
and must make it easy to do business with DSV.
A responsive approach to
technology and digitalisation
In 2021, our digital freight forwarding platform, myDSV, took more than
300,000 bookings a month. This platform is now part of our critical infra-
structure, not only managing bookings but tracking, claims and reporting
too. Besides myDSV, we provide direct customer integrations for our
larger customers. Increasingly, we are seeing the classic EDI connections
being replaced by the more advanced API integrations. Road ETA is a re-
cent myDSV addition, providing real-time GPS tracking and trac data
over the whole European Road Network. Drivers get up-to-the-minute
help with route planning, and customers get close arrival time estimates
and are alerted about delays.
Automated, ecient warehousing
Automating and optimising warehouse processes improve customers’
experiences and enable us to utilise warehouse space more eciently.
The recent growth in e-commerce transactions means that the demand
for ecient warehouse solutions is growing too.
In 2021, we launched DSV Fulfilment Factory. It consists of large-scale
multi-user warehouses equipped with automated goods-to-person stor-
age and retrieval technology. Four out of a total of 20 planned ware-
houses are now operating, enabling smaller companies (both B2C and
B2B) to benefit from warehouse automation usually only accessible to
bigger customers.
Staying abreast of the latest trends
Our DSV Innovation Hub drives our global innovation eorts, monitoring
trends and technologies and prioritising which to explore. Working with
the Group COO, operational units and IT – and external tech innovators
and start-ups – this team tests ideas, establishes financial business cases
and implement projects across our global network.
DSV technology trend radar
– selected examples
Adopting
Testing
Tracking/
Assessing
Self-driving
vehicles
Micro
mobility
Exo
sceleton
5G
network
Alternative
fuels
Digital
twins
Drones
Machine
learning
Visibility
platform/
live
tracking
Hybrid
computing
platform
Automated
storage
system
Technological developments have always driven
change in our industry. At DSV, we monitor the
development and adapt new technologies to
ensure that we – and our stakeholders – benefit
from new developments.
17 DSV Annual Report 2021 Strategy and financial targets
Outlook for and
long- term financial targets
For 2022, we expect EBIT before special items
of DKK 18,000-20,000 million. We have
updated our long-term targets following the
Global Integrated Logistics (GIL) acquisition.
We now expect to reach a conversion ratio
of 45% for the Group in 2026.
Outlook 2022
(DKKm)
2021
actual
Outlook
2022
Operating profit (EBIT)
before special items 16,223 18,000-20,000
Eective tax rate 24.5% 23%
2026 targets (%)
2021
actual
Previous
2025
targets
Revised
2026
targets
DSV Group
Conversion ratio 43.1 >40.0 >45.0
ROIC (before tax) 19.6 >20.0 >20.0
Divisional targets for conversion ratio
Air & Sea 53.7 >47.5 >50.0
Road 26.2 >30.0 >30.0
Solutions 26.7 >30.0 >30.0
Assumptions for 2022 financial outlook
OECD and IMF project global economic growth around 4% in
2022, and we expect growth rates in the transport markets to be
in line with underlying economic growth. Our ambition is to gain
market share in all the markets in which we operate. However, the
ongoing integration of GIL may limit our ability to outperform
the market in Air & Sea, especially in the first half of 2022.
The outlook is based on the assumption that the current situa-
tion in transport markets – with congestion, tight capacity and
high rate levels – will continue in the first half of 2022. A grad-
ual improvement could start during the second half of the year,
This Annual Report includes
forward-looking statements
on various matters, such
as expected earnings and
future strategies and expan-
sion plans.
Such statements are uncer-
tain and involve various risks,
because many factors, some
of which are beyond our
control, may result in actual
developments diering con-
siderably from the expecta-
tions set out in the 2021
Annual Report.
Such factors include, but are
not limited to, general eco-
nomic and business condi-
tions, 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
subsidiaries and uncertainty
in connection with the ac-
quisition and divestment
of enterprises.
and this could have a positive impact on transport volumes
and our productivity but also a negative impact on our gross
profit yields.
We assume that the integration of GIL will continue as planned
and that we will achieve approximately 85% of the total ex-
pected EBIT contribution of DKK 3,000 million in 2022. Full-
year impact of the GIL integration is expected in 2023. Special
items at the level of DKK 1,000 million related to the inte-
gration are expected in 2022.
The outlook for 2022 assumes that the currency exchange
rates, especially the US dollar against DKK, will remain at the
current level. Due to the volatile and unpredictable transport
markets, the assumptions that our outlook for 2022 rely on
are more uncertain than they would normally be.
Long-term financial targets
Following the acquisition of GIL in 2021, our financial targets
have been adjusted for the DSV Group and for the Air & Sea
division. We expect to achieve the revised targets by 2026.
The targets are based on the assumption of stable global eco-
nomic development during the period, with annual global GDP
growth of approximately 3% and transport market growth in
line with GDP. Based on our market position, we expect that
we can take market share in all divisions and exceed market
growth in the five-year period.
With growth in activity and our continuous focus on opera-
tional excellence, we see opportunities to improve productivity
across the Group. Our IT systems, infrastructure and back-
oce functions are scalable, providing opportunities to lever-
age operations in all three divisions.
The Air & Sea division is expected to benefit from the integration
of GIL and from further optimisation of work flows and im-
proved utilisation of IT systems in the period. The extraordinary
market conditions in 2021 have led to elevated gross profit
yields and conversion ratio in Air & Sea. For the five-year period,
we have assumed that gross profit yields will gradually decline.
The Road division is expected to continue the positive mo-
men tum from 2021 and gradually improve the network and
productivity during the period.
The Solutions division will continue their work on automation,
consolidation of existing infrastructure and addition of new
warehouse capacity at key logistics locations.
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:
Forward-
looking
statements
18 DSV Annual Report 2021 Strategy and financial targets
Capital structure
The aim of DSV’s target capital structure is to ensure:
• sucient 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 2.0 x EBITDA
before special items. The ratio may exceed this level following
significant acquisitions.
Capital allocation policy
Our free cash flow allocation prioritisation remain unchanged:
1 Repayment of net interest-bearing debt in periods
when the financial gearing ratio is above target range.
2 Value-adding investments in the form of acquisitions
or development of the existing business.
3 Distribution to the shareholders through share
buybacks and dividends.
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 fragmented industry.
As a Group, we have a track record of successful company
integrations – the most recent chapter in this story being
the acquisition of Agility’s Global Integrated Logistics business
in 2021.
We have been able to create increasing return on invested
capital (ROIC) over time. However, large acquisitions have
initially diluted ROIC before tax.
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
approximately 10-15% of our net profit.
Proposed dividend for 2021 amounts to DKK 5.50 per share
(2020: 4.00 per share). The proposed dividend for 2021 is
equivalent to 11.7% of net profit and 11.1% of adjusted earnings.
Capital structure
and allo cation
Distribution
of capital
(DKKm)
■ Dividends
■ Share buyback
2017 2018 2019 2021
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2020
342
1,559
380
4,888
5,031
17,841
4,161
423 588 920
19 DSV Annual Report 2021 Strategy and financial targets
Income statement (DKKm) 2021 2020 Growth*
Revenue 182,306 115,932 58.6%
Direct costs 144,691 87,398
Gross profit 37,615 28,534 32.7%
Gross margin 20.6% 24.6%
Other external expenses 4,173 3,291
Sta costs 13,025 11,684
Operating profit before amortisation and
depreciation (EBITDA) before special items
20,417 13,559
Amortisation and depreciation 4,194 4,039
Operating profit (EBIT) before special items 16,223 9,520 71.3%
Conversion ratio 43.1% 33.4%
Special items, costs 478 2,164
Net financial expenses 841 1,729
Profit before tax 14,904 5,627
Tax on profit for the year 3,650 1,369
Profit for the year 11,254 4,258
Our 2021 EBIT before special items was DKK 16,223
million – up 71.3% and above the expected level of
DKK 15,250-16,000 million.
Financial review
Strong performance
2021 saw extraordinary market conditions for global logistics,
especially for air and sea freight. This was a result of strong
demand and pandemic-driven congestion and imbalances in
worldwide supply chains. Despite these unique challenges, our
skilled freight forwarders, scale and strong carrier relationships
helped us deliver transport solutions for customers as well as
strong results and growth for our company this year.
In line with our M&A strategy, we acquired Global Integrated
Logistics (GIL) in 2021. The integration is going to plan, and
we expect to complete it in Q3 2022.
Adjusted free cash flow for the year was DKK 8,659 million
(2020: DKK 8,746 million). During 2021, our net working
capital increased, as receivables from customers were aected
by record-high freight rates. Relative to revenue, our net
working capital was at the expected level.
Return on invested capital (ROIC before tax) including goodwill
and customer relationships was 19.6% for 2021 compared to
14.3% last year. The increase was due to growth in earnings,
only partly oset by the higher average invested capital fol-
lowing the GIL transaction.
Integration of GIL
The acquisition of GIL was completed on 16 August 2021.
From that date, we included GIL in our consolidated financial
statements, and it had a material impact on the profit and loss
statement, cash flow and balance sheet statements. Between
16 August and 31 December 2021, GIL contributed around
DKK 15,000 million to revenue and DKK 950 million to EBIT
before special items for the Group.
More details about GIL are available in note 6.1 on page 78.
* Growth including M&A and in constant currencies.
Michael Ebbe
CFO
20 DSV Annual Report 2021 Financial and non-financial performance
Results
Revenue
Our Air & Sea division grew revenue by 81.6%. Apart from the impact of
acquisitions, the increase was driven by record-high rates for both air and
sea freight and organic growth.
Compared to 2020, our Road and Solutions divisions also grew revenue.
This was driven by volume recovery aer the pandemic in 2020, market
share gains and the impact of acquisitions.
(DKKm) 2021 2020 Growth*
Air & Sea 131,901 73,689 81.6%
Road 35,416 30,395 16.2%
Solutions 18,734 14,608 28.4%
Group and eliminations (3,745) (2,760) n.a.
Total revenue 182,306 115,932 58.6%
* Growth including M&A and in constant currencies.
Gross profit
Gross profit was up 32.7% in 2021. The Air & Sea increase was mainly
driven by volume growth and higher gross profit yields, partly due to ex-
traordinary market conditions. Gross profit increases in Road and Solutions
were mainly driven by growth in activity compared to 2020.
While absolute gross profit growth was strong in 2021, gross margin for
the Group came to 20.6% compared to 24.6% last year. This drop was
mainly related to our Air & Sea division; because of its growth, this divi-
sion now forms a larger part of the total Group. Moreover, record-high
freight rates lowered our gross margin due to pass-through element of
freight rates on revenue.
(DKKm) 2021 2020 Growth*
Air & Sea 23,769 16,909 42.3%
Road 7,095 6,138 15.1%
Solutions 6,653 5,369 23.9%
Group and eliminations 98 118 n.a.
Total gross profit 37,615 28,534 32.7%
* Growth including M&A and in constant currencies.
EBIT before special items
For the Group, EBIT before special items rose 71.3%, driven by strong
gross profit growth, continued focus on cost management and the posi-
tive impact of the GIL integration. With an increase of 83.5%, our Air &
Sea division grew the most in 2021, driven both by underlying improve-
ments and by the extraordinary market conditions in the sector.
The 2021 conversion ratio was 43.1% compared to 33.4% last year. All
our divisions improved their ratios, driven by growth in gross profit and a
continued focus on operational excellence.
(DKKm) 2021 2020 Growth*
Air & Sea 12,768 7,026 83.5%
Road 1,857 1,390 32.6%
Solutions 1,775 1,161 51.3%
Group and eliminations (177) (57) n.a.
Total EBIT before special items 16,223 9,520 71.3%
* Growth including M&A and in constant currencies.
Total sta costs (excluding hourly workers) were DKK 13,025 million in
2021 (2020: DKK 11,684 million). This rise in costs is explained by the
inclusion of GIL as well as the organic increase in activity and cost inflation.
Revenue
(DKKm)
210,000
175,000
140,000
105,000
70,000
35,000
0
2021201920182017
Gross profit
(DKKm)
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
%
20192018
50
40
30
20
10
0
EBIT before special items
(DKKm)
18,000
15,000
12,000
9,000
6,000
3,000
0
%
2020201920182017
18
15
12
9
6
3
0
Gross profit
Operating margin
Conversion ratio
EBIT
2017 2020
2020
2021
2021
21 DSV Annual Report 2021 Financial and non-financial performance
Cash flow statement
Cash flow from operating activities in 2021 rose by 18.7% to DKK
12,202 million. Cash flow was positively aected by higher EBITDA before
special items but oset by an increase in net working capital.
On 31 December 2021, our net working capital was DKK 8,031 million
compared to DKK 2,701 million in 2020. In the second half of 2021,
receivables from our customers went up as a result of record-high freight
rates and acquisition which led to a revenue increase and so an increase
in trade receivables.
Relative to full-year revenue (pro forma incl. GIL and based on current
rate levels), funds tied up in NWC at year-end increased to 3.5%, from
2.3% in 2020.
Cash flow from investing activities was a cash inflow of DKK 420 million
in 2021 (2020: cash outflow of DKK 556 million). Purchase of intangible
and tangible assets were on level with last year, and the dierence can
mainly be explained by the GIL acquisition, where a net cash position of
DKK 1,819 million was included as positive cash flow from acquisition.
Adjusted free cash flow (adjusted for acquisitions, special items and IFRS 16)
was DKK 8,659 million and on level with last year. Cash flow was im-
pacted positively by higher EBIT before special items but reduced by
higher working capital and higher tax payments.
Cash flow from financing activities was negative by DKK 8,680 million in
2021 (2020: negative DKK 6,999 million). This was mainly due to share-
holder allocations and repayment of lease liabilities.
The GIL acquisition was an all-share transaction and had no direct impact on
financing activities. In line with our capital allocation policy, we have allocated
DKK 18,761 million to shareholders via share buybacks and dividend in 2021,
to make sure the financial gearing ratio stayed on target throughout the year.
At year end, the ratio was 1.4x EBITDA (2020: 1.3x).
Capital structure
On 31 December 2021, DSV shareholders’ share of equity was DKK
74,103 million (2020: DKK 47,385 million). This rise was mainly driven
by the capital increase and share transfer to Agility in connection with
the GIL transaction, where we increased share capital by nominally DKK
16 million. Aer the capital increase, share capital was nominally DKK
240 million divided into 240 million shares of DKK 1 each. Each share
has one vote.
Net interest-bearing debt was DKK 29,245 million by the end of 2021
(2020: DKK 18,189 million). NIBD increased by DKK 11,056 million
– of which DKK 1,168 million relates to GIL. The rest of the increase was
mainly due to shareholder allocations during the year.
In 2021, we issued three new corporate bonds totalling EUR 1,600 million
and with durations between 10-15 years. The weighted average duration
of corporate bonds, committed loans and credit facilities was 9.6 years on
31 December 2021 compared to 3.2 years on 31 December 2020.
Other external expenses totalled DKK 4,173 million in 2021 (2020:
DKK 3,291 million) and were aected by the same factors as sta costs.
Depreciations totalled DKK 4,194 million in 2021 (2020: DKK 4,039
million), mainly because of the inclusion of GIL.
Special items totalled DKK 478 million in 2021 (2020: DKK 2,164 million)
– consisting of transaction and integration costs for the GIL acquisition.
Net financial expenses totalled DKK 841 million in 2021 (2020: DKK
1,729 million). Loss on currency translation was DKK 56 million compared
to a DKK 1,055 million loss in 2020. Currency translation mainly related
to intercompany loans and had no cash impact.
(DKKm) 2021 2020
Interest on lease liabilities 495 434
Other interest cost, net 276 224
Interest on pensions 17 16
Currency translation, net 53 1,055
Net financial expenses 841 1,729
Tax on profit for the year was 24.5% compared to 24.3% in 2020. Our
2021 eective tax rate was aected by non-deductible restructuring
costs and other one-os during the year.
Diluted adjusted earnings per share
Diluted adjusted earnings per share in 2021 went up by 91.9% to DKK 50.9
(2020: DKK 26.5). This was driven by the significant increase in adjusted
earnings, only partly oset by the capital increase from the GIL integration.
NIBD and gearing ratio
Gearing ratioNIBD
(DKKm)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
%
2020201920182017
2.0
1.5
1.0
0.5
0
IFRS lease
2021
22 DSV Annual Report 2021 Financial and non-financial performance
Non-financial
review
Indicator Unit Target 2022 2021 2020
CO
2
e - Air transport* g/tonne-km 694.4 704.0
CO
2
e - Sea transport* g/tonne-km 6.1 6.2
CO
2
e - Road transport* g/tonne-km** 92.4 92.8
Lost Time Injury
Frequency Rate
Number per million
working hours <5.0 4.5 6.7
Lost workdays due to
lost time injury
Number per million
working hours <100 61.0 78.8
Fatalities Number 0 1 0
Code of Conduct
e-learning*** Percentage 100% 100% 100%
Progress towards environmental targets
Among the major achievements in 2021 was the launch of DSV
Green Logistics – a new initiative to reduce scope 3 emissions
from transports. With a vast majority of our CO
2
emissions
originating in our value chain, DSV Green Logistics provides us
with a catalogue of green solutions to support us to take steps
towards achieving our SBTi commitments and to support our
customers on their journey to decarbonise their supply chain.
The next phase of Green Logistics includes evaluating and map-
ping out the expected pathways for dierent sustainable fuels
and technologies across air, sea and road freight. From applica-
bility to availability and scalability, this project will help form
DSV’s perspective on the future of transportation fuel.
In 2021, we also introduced initiatives that will help us reduce
the scope 1 and 2 impact of our activities. We introduced more
hybrid and electrical cars to our company car fleet and increased
our installed solar power capacity, and we also continued to im-
plement environmental standards in all new constructions using
international standards such as DGNB, BREEAM and LEED.
Due to the GIL acquisition, we will in 2022 recalculate the base-
line for our Science Based Targets. Therefore, we do not com-
ment on our total emissions and the progress compared to the
2019 baseline. However, we can see that our energy eciency
(g/tonne-km) improved in 2021 for all transport modes. This is
a continuation of the development we have seen over the last
decade, driven by more energy ecient technology and better
utilisation of the transport equipment.
Group ISO certification within health and safety
The health and safety of our employees are of utmost importance
to us. In 2021, we implemented a framework in more than 400
locations globally to achieve our first Group Multisite ISO certifi-
cation. This certification proves to our customers – and to our
employees – that DSV runs ecient and streamlined processes
to ensure a safe and healthy workplace for our people.
DSV reached several milestones in 2021 across
all areas of ESG – from launching Green Logistics
and completing the rollout of our global Diversity
and Inclusion policy to receiving our first Group
Multisite ISO certification.
ESG data
* Targets regarding CO
2
performance are to be reassessed in 2022 when submitting a new baseline.
** Comparative figures have been restated, as our method for calculation and data transparency has improved.
*** Percentage of salaried employees trained out of salaried employees in scope for training.
23 DSV Annual Report 2021 Financial and non-financial performance
Leading
the way for a
sustainable future
Sustainability Report 2021
Reporting on corporate
social responsibility
During 2022, more locations will be added and we expect that, by the end
of the year, 50% of our locations will be covered by the multisite certificate.
Our focus on health and safety is reflected in the frequency rate for lost
time due to injuries. This KPI improved in 2021 and is now below our target
level. However, sadly, in 2021 we had one fatal working accident. This is
one too many, and the event was followed up by an accident investigation
based on which several initiatives have been launched, such as increased
focus on high-visibility workwear and training of frontline workers.
Successful roll-out of new Diversity and Inclusion policy
In early 2021, we introduced DSV's global Diversity and Inclusion Policy. This
policy formalises our position on equal rights for all our sta as well as our
dedication to providing opportunities for everyone to realise their potential.
During the year, we introduced various measures to ensure that the
standards defined in our Diversity and Inclusion Policy are adopted and
put into practice. These initiatives have yielded positive results, as we can
observe a positive trend in terms of gradually improving gender diversity
composition across our multi-national global workforce. All of our people
managers and HR sta completed diversity and inclusion e-learning
courses in 2021. The purpose of this training is to help develop their
understanding of potential biases and stereotyping – and ensure that
these issues are top of mind for everyone, across all locations.
Doing business with integrity
Our Code of Conduct (CoC) defines what doing business with integrity
means at DSV. Available in 10 dierent languages, the CoC provides the
basis for our principles and our behaviour and stresses our approach of
zero tolerance to corruption and bribery matters.
In 2021, 100% of salaried employees completed our global CoC E-learn-
ing programme, and hourly workers without access to IT in their daily job
received classroom training instead.
Our whistleblower programme allows anyone – inside as well as outside
DSV – to anonymously report if they experience any potential miscon-
duct. During 2021, 47 cases were reported compared to 42 in 2020.
None of the reported cases were of material nature.
Working with suppliers
To strengthen our supplier onboarding process, we piloted a new global
Third-Party Risk Management (TPRM) programme during 2021. We
tested this programme with a selected group of suppliers to carry out a
step-by-step implementation of what will be our global framework for
supplier management going forward.
The TPRM programme is planned to be fully launched during Q1 of 2022,
with smarter services and streamlined onboarding as well as tighter re-
strictions on supplier generation, human rights, anti-tracking and an-
ti-bribery. We are convinced that once all our suppliers have been on-
boarded and the TPRM is fully implemented, it will operate as an ecient
tool to mitigate risk among all suppliers in our network.
New partnerships
Our ESG work depends on cooperation with organisations in and outside our
industry. In 2021, we joined United Airlines’ Eco-Skies Alliance and Good-
Shipping – both programmes involve leading global corporations working
towards more sustainable transport. We also joined The World Economic
Forum, which will enable us to meet relevant companies and organisations
and discuss the challenges and opportunities our industry is facing.
Partnerships
and membership
in associations
For more information
on developments
within each ESG area,
please refer to our
Sustainability Report at
24 DSV Annual Report 2021 Financial and non-financial performance
Driven by 42.3% gross profit growth, the division
reported EBIT before special items of DKK 12,768
million – compared to DKK 7,026 million in 2020.
Air & Sea
Market situation
In 2021, supply chains continued to be disrupted by the pandemic,
subsequently impacting both demand and available capacity.
Air
The global air freight market continues to be aected by high
demand and limited belly space in passenger planes, meaning
less available cargo capacity and high rates. Passenger trac
did gradually return in 2021, but the associated belly capacity
increase has mainly been on domestic and regional passenger
flights, not long-haul intercontinental routes.
Lockdowns and congestion at airports in dierent parts of the
world caused significant disruptions for air freight during
2021. Additionally, sea freight challenges added more volume
to air freight, with delays forcing shippers to find alternatives.
This year, we achieved air freight volume growth of 18.7%
(including M&A impact). Adjusted for the acquisition of
Agility’s Global Integrated Logistics business (GIL) and discon-
tinued activities, the division’s 2021 growth figures were in
line with the market.
Sea
The sea freight market is still characterised by solid demand
and tight capacity due to port congestion and lack of equip-
ment. The US West Coast ports have been the most con-
gested, but it is a worldwide issue. This is mainly due to the
pandemic, but the market was also impacted by other events
during the year, like the temporary blocking of the Suez Canal
in June 2021.
Freight rates have been record high and schedule reliability
low. There was also stagnant market growth during the sec-
ond half of 2021, partly because of capacity constraints but
also lower growth rates on the trans-Pacific trade lane.
Condensed income statement
and key figures
(DKKm) 2020 Growth*2021
Revenue 131,901 73,689 81.6%
Direct costs 108,132 56,780
Gross profit 23,769 16,909 42.3%
Other external expenses 3,366 2,870
Sta costs 6,598 6,048
Operating profit before amortisation and
depreciation (EBITDA) before special items
13,805 7,991
Amortisation and depreciation 1,037 965
Operating profit (EBIT) before special items 12,768 7,026 83.5%
Gross margin (%) 18.0 22.9
Conversion ratio (%) 53.7 41.6
Operating margin (%) 9.7 9.5
Number of full-time employees at year end 24,675 18,008
Total invested capital 73,256 43,305
Net working capital 10,675 3,215
ROIC before tax (%) 21.9 15.8
* Growth including M&A and in constant currencies.
Operating profit
DKK 12,768 million
+83.5%
25 DSV Annual Report 2021 Financial and non-financial performance
In 2021, we saw sea freight volume growth of 13.1% (in-
cluding M&A impact). Adjusted for the GIL acquisition, this
was in line with the market. Securing extra capacity in a tight
market has been the main obstacle to winning new customers
this year, as we prioritise existing customers.
Strategic and operational highlights
Given the very challenging market – combined with acquiring
and integrating GIL – this year we focused on providing the
best possible service to existing customers. Thanks to our
skilled teams, scale benefits and strong carrier relationships,
we found transport solutions for our customers despite all the
disruption. Because of the unusual conditions, our gross profit
per shipment went up. At the same time, the disruptions in-
creased the time we spent managing each shipment.
We focused on maintaining strong key strategic carrier rela-
tionships all year for both air and sea freight. We also ex-
panded our air charter network, which now covers more than
10% of DSV and GIL volumes.
Acquiring GIL added volume to our network globally and made
Air & Sea even stronger, especially in the Middle East and
APAC. GIL also gave us new competences (for example in the
chemicals sector) and made us a top-three player in both the
air and sea markets. Merging our two businesses is going well,
and thanks to highly motivated and talented teams on both
sides, the integration is ahead of our original plan.
We keep optimising processes, making sure we use systems
like myDSV and other customer integration tools the right
way across all teams and markets. Our robust digital infra-
structure and processes put us in a strong position for more
Air & Sea growth.
Geographic
segmentation 2021
Division gross profit
can be broken down
into geographi cal
areas:
AMERICAS
27%
EMEA
44%
APAC
29%
Results
DSV Air & Sea revenue was DKK 131,901 million in 2021
(2020: DKK 73,689 million). This is an annual growth of 81.6%.
The revenue growth was mainly due to record-high freight
rates combined with volume growth – especially in air freight.
The growth was driven by all regions and, from August 2021,
was boosted by the GIL acquisition.
This year’s gross profit was DKK 23,769 million (2020: DKK
16,909 million), corresponding to an annual growth of 42.3%.
Higher gross profit yields per unit, combined with increased ac-
tivity levels, drove this growth. Tight capacity, congestion and
high freight rates on the global logistics markets drove up gross
profit per TEU for sea freight and per tonne for air freight.
The division’s gross margin was 18.0% in 2021 compared to
22.9% last year. The drop was due to higher freight rates
leading to lower gross margin because of the pass-through
eect of freight rates on revenue.
This year, EBIT before special items was DKK 12,768 million
(2020: DKK 7,026 million) – an annual rise of 83.5%. The in-
crease was driven by the gross profit rise, supported by our
continued cost management focus. The full-year impact from
integrating Panalpina contributed to the EBIT increase, and, from
August 2021, the GIL acquisition also had positive impact.
All regions delivered strong EBIT growth in 2021. All our
teams across the whole organisation deserve a lot of credit
for this performance. The highest 2021 growth rate was in
Latin America – a strong example of how our network has
developed in recent years.
Air freight (DKKm) 2021 2020
Revenue 70,846 44,756
Direct costs 57,795 34,481
Gross profit 13,051 10,275
Gross margin (%) 18.4 23.0
Volume (tonnes) 1,510,833 1,272,405
Gross profit per unit (DKK) 8,638 8,075
Sea freight (DKKm)
Revenue 61,055 28,933
Direct costs 50,337 22,299
Gross profit 10,718 6,634
Gross margin (%) 17.6 22.9
Volume (TEUs) 2,493,951 2,204,902
Gross profit per unit (DKK) 4,298 3,009
26 DSV Annual Report 2021 Financial and non-financial performance
14
12
10
8
6
4
2
0
This year, the conversion ratio came to 53.7% compared to
41.6% last year. The rise was due to the gross profit increase,
but it is also a testament to the skills of our sta and scalabil-
ity of our systems.
Net working capital (NWC) was DKK 10,675 million at the
end of this year, compared to DKK 3,215 million at year-end
2020. This was mainly because of increased activity and
higher freight rates. NWC was also aected by the inclusion
of GIL.
In 2021, return on invested capital was 21.9% compared to
15.8% in 2020. The increase was driven by strong earnings
growth, partly oset by increased invested capital because of
the GIL acquisition.
Focus areas for 2022
Congestion and capacity constraints were an issue throughout
2021 – for air and sea freight. These challenges will continue
well into 2022. So our focus will be on finding the right solu-
tions, helping our customers and keeping supply chains flow-
ing in a challenging market.
We will continue our eorts to fully and successfully integrate
GIL into our existing business. Once this work is complete, we
will capitalise on our strong new market position. Our target is
above-market growth, and our ability to reach this target will
improve as 2022 progresses.
Our roadmaps will help us develop our IT tools and further
workflow standardisation. But we need to make sure
everything we do here is in line with what our customers
want; we must oer strong digital services but combined
with personal service where it is needed.
Last – but certainly not least – sustainability is moving up on
our agenda. We will present our new Green Logistics services
to customers in 2022.
One of the leading
freight forwarders
With the inclusion of GIL,
we significantly strengthened
the Air & Sea division and
are now a top-3 player
in the market.
Revenue Gross profit EBIT before special items
Gross profit
Conversion ratio
Operating margin
EBIT
(DKKm) (DKKm) (DKKm)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
24,000
20,000
16,000
12,000
8,000
4,000
0
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
%%
2020 2020 20202019 2019 2019
2018
2018 2018
2017
2017 2017
60
50
40
30
20
10
0
2021 2021 2021
27 DSV Annual Report 2021 Financial and non-financial performance
Driven by a 15.1% rise in gross profit, DSV Road
achieved EBIT before special items of DKK 1,857
million this year – compared to DKK 1,390 million
in 2020.
Road
Market situation
We estimate that the road freight market grew by around
5-7% this year compared to 2020. Growth was highest in the
first half of 2021 as activity rebounded aer the COVID-19
lockdowns in 2020.
International transport activity is in most markets back at
2019 levels and domestic distribution in many cases higher.
These high activity levels are leading to tight capacity, in
-
creased road freight rates and general cost inflation across
most regions. Some sectors, like Automotive, suered, from
a lack of components in 2021, while others – especially B2C
companies – have seen high growth.
This year, we estimate DSV Road grew its share across most
markets because of its strong network and market position.
The division also benefitted from the acquisition of Global
Integrated Logistics (GIL) and Globeflight in South Africa.
Strategic and operational highlights
COVID-19 restrictions, Brexit and other challenging market
conditions were top of mind for us in 2021. Thanks to our
teams’ dedication and hard work, combined with our strong
network, we kept the road supply chains flowing. We were
well-prepared for Brexit, but disruptions and capacity issues
were more severe than everyone expected. Still, we stayed
open for business in the UK and helped our customers during
the most challenging months.
This year, we made more progress on our Road Way Forward
programme. Its aim is to bring DSV Road in Europe to the next
level – with a new IT production platform (transport manage
-
ment system) and improvements to our network and opera-
tional procedures. We completed planned pilots in three coun-
tries over the year, and, overall, the Road Way Forward
programme is on track.
Condensed income statement
and key figures
(DKKm) 2020 Growth*2021
Revenue 35,416 30,395 16.2%
Direct costs 28,321 24,257
Gross profit 7,095 6,138 15.1%
Other external expenses 1,122 1,021
Sta costs 3,149 2,799
Operating profit before amortisation and
depreciation (EBITDA) before special items 2,824 2,318
Amortisation and depreciation 967 928
Operating profit (EBIT) before special items 1,857 1,390 32.6%
Gross margin (%) 20.0 20.2
Conversion ratio (%) 26.2 22.6
Operating margin (%) 5.2 4.6
Number of full-time employees at year end 16,888 14,003
Total invested capital 9,624 8,942
Net working capital (2,133) (1,310)
ROIC before tax (%) 20.0 14.5
* Growth including M&A and in constant currencies.
Operating profit
DKK 1,857 million
+32.6%
28 DSV Annual Report 2021 Financial and non-financial performance
GIL added new activities to the division in the Middle East and
Europe and, in 2021, we also completed the acquisition of
Globeflight in South Africa. Integrations are progressing well
and both acquisitions have added new capabilities and volume
to our network.
Results
DSV Road revenue was DKK 35,416 million in 2021 (2020:
DKK 30,395 million) – an annual growth of 16.2%. Our scale
and strong network helped us find ecient transport solutions
for customers despite disruption, and the growth was driven
by organic growth in activity as well as the impact from M&A.
A gradual increase in haulier rates and oil prices also had an
impact on revenue.
Gross profit was DKK 7,095 million in 2021 (2020: DKK
6,138 million), an annual increase of 15.1%. The division’s
2021 gross margin was 20.0% and on level with last year. All
regions contributed positively to the growth in both revenue
and gross profit.
EBIT before special items was DKK 1,857 million in 2021
compared to DKK 1,390 million in 2020. This 32.6% increase
was driven mainly by gross profit increases. The conversion
ratio in 2021 rose to 26.2% compared to 22.6% last year. This
was driven by higher productivity and the eect of the COV
-
ID-19 cost saving initiatives we implemented in 2020.
Net working capital (NWC) was negative by DKK 2,133 million
at the end of this year, against a negative DKK 1,310 million at
year-end 2020. The increase was a result of higher activity
levels in 2021.
Return on invested capital was 20.0% in 2021 (2020: 14.5%),
driven by the earnings increase.
Focus areas in 2022
Our Road Way Forward programme continues in 2022. That
includes finalising the proof of concept and rolling out the new
transport management systems. It also includes developing
our European Groupage services further – as well as our less-
than-truckload (LTL) and full-truckload (FTL) activities.
The EU Mobility Package came into force February 2022. While
we still do not know how we will implement the new rules in
each country, we will work closely with customers and subcon
-
tractors to make sure we handle the changes and secure the
necessary capacity.
The GIL integration is well underway, and we are looking for
-
ward to exploring new Road opportunities in the Middle East.
Based on strong 2021 performance, we also expect continued
growth in North America and South Africa.
At the end of 2021, we launched our Green Logistics services.
In 2022, we look forward to oering more customers these
services.
Geographic
segmentation 2021
Division gross profit can
be broken down into
geographi cal areas:
AMERICAS
5%
EMEA
95%
Revenue Gross profit EBIT before special items
Gross profit
Conversion ratio Operating margin
EBIT
(DKKm) (DKKm) (DKKm)
40,000
32,000
24,000
16,000
8,000
0
7,500
6,000
4,500
3,000
1,500
0
2,000
1,500
1,000
500
0
%%
2020 2020 20202019 2019 20192018 2018 20182017 2017 2017
40
32
24
16
8
0
8
6
4
2
0
2021 2021 2021
29 DSV Annual Report 2021 Financial and non-financial performance
Driven by organic growth and the positive eect of
our acquisition of Global Integrated Logistics (GIL), the
division reported EBIT before special items of DKK 1,775
million – compared to DKK 1,161 million in 2020.
Solutions
Market situation
The contract logistics market grew by roughly 6-8% last year
compared to 2020. The market had good momentum – with
growth across most industries and e-commerce as a major
driver. Warehouse capacity is in high demand, especially in
Europe and North America, and labour shortages and cost
inflation are increasing.
We estimate that DSV Solutions took market share in 2021.
This was because of our strong service oering, new ware-
house capacity and high utilisation of existing capacity. With
GIL on board, the division is well placed for more growth in
the coming years.
Strategic and operational highlights
In recent years, the UTi and Panalpina acquisitions strength-
ened DSV Solutions in North America, South Africa and APAC.
Following the integration of GIL into our business this year,
our position is even stronger – especially in the Middle East
and APAC.
E-commerce grew faster in 2021, as the pandemic changed
customers’ purchasing patterns. Handling ever-larger goods
volumes – as well as dealing with seasonal peaks in online
sales – calls for strong, standardised processes and oen
warehouse automation.
During 2021, we addressed that call, making good progress on
several automation projects. We launched DSV Fulfilment Fac-
tory: a string of multi-user facilities to help us oer warehouse
automation to all sizes of companies with multiple distribution
channels, both B2B and B2C. Today, we are operating 4 of 20
planned facilities. That includes Prime Cargo, which we acquired
at the end of 2020.
During 2021, Solutions’ warehouse utilisation rate was at a
record high, and the need for new, ecient warehouses across
Condensed income statement and key figures
(DKKm) 2020 Growth*2021
Revenue 18,734 14,608 28.4%
Direct costs 12,081 9,239
Gross profit 6,653 5,369 23.9%
Other external expenses 1,338 1,089
Sta costs 1,664 1,449
Operating profit before amortisation and
depreciation (EBITDA) before special items 3,651 2,831
Amortisation and depreciation 1,876 1,670
Operating profit (EBIT) before special items 1,775 1,161 51.3%
Gross margin (%) 35.5 36.8
Conversion ratio (%) 26.7 21.6
Operating margin (%) 9.5 7.9
Number of full-time employees at year end 31,866 21,478
Total invested capital 20,182 11,370
Net working capital 1,061 775
ROIC before tax (%) 11.3 10.0
* Growth including M&A and in constant currencies.
Operating profit
DKK 1,775 million
+51.3%
30 DSV Annual Report 2021 Financial and non-financial performance
most markets remains high. During the year, we finished con-
structing several large, multi-client warehouses in key Europe-
an, North American and South African markets and we kept
working on strategic roadmaps for all regions. This will give
us a strong base for organic growth and to continue oering
attractive solutions for our customers.
Our new warehouses optimise productivity and space use –
maximum pallets per square metre – through higher racking,
narrower aisles and automation. We have also made them
greener, using the best building standards and technologies to
minimise energy consumption for heating, cooling and lighting.
Results
DSV Solutions revenue was DKK 18,734 million in 2021
(2020: DKK 14,608 million), corresponding to an annual
growth of 28.4%. The increase was driven by organic growth
and by the acquisition of GIL, which extended the reach of
the division's activities.
Gross profit was DKK 6,653 million in 2021 (2020: DKK
5,369 million) – an annual increase of 23.9% driven by higher
activity and M&A.
The division achieved a gross margin of 35.5% in 2021 compared
to 36.8% last year. The gross margin was in line with our internal
expectations. It should be noted that the division’s 2020 gross
margin was influenced by temporary COVID-19 cost savings.
In 2021, EBIT before special items was DKK 1,775 million
(2020: DKK 1,161 million). This is an annual increase of 51.3%,
driven by good organic performance, improvements in the
legacy DSV business and a strong EBIT contribution from GIL.
The conversion ratio was 26.7% this year, compared to 21.6%
last year. The improved ratio came from improved productivity
and the impact of the COVID-19 cost-saving initiatives we
implemented in 2020.
Net working capital (NWC) was DKK 1,061 million at the end
of 2021 compared to DKK 775 million last year – mainly be-
cause of higher activity levels and the inclusion of GIL into
our business.
Driven by the improved EBIT, return on invested capital came to
11.3 % for 2021 compared to 10.0% last year.
Focus areas in 2022
In the near future, the contract logistics market will be charac-
terised by tight warehousing capacity, cost inflation and labour
shortages in several markets. We have a strong organisation,
well prepared to navigate these challenges and win new busi-
ness. An improved healthcare sector oering and new e-com-
merce products in the Middle East are examples of upcoming
commercial initiatives.
GIL is already proving a strong addition to DSV Solutions.
The integration will continue, benefiting us and our customers
in 2022.
We will continue working on several other strategic projects in
2022. They include carrying on the rollout of DSV Fulfilment
Factories and developing our e-commerce services, consoli-
dating and developing new, modern warehouse capacity and
continuing to consolidate and optimise our IT infrastructure
and back-oce workflows.
Geographic
segmentation 2021
Division gross profit can
be broken down into
geographi cal areas:
AMERICAS
18%
APAC
11%
EMEA
71%
Revenue Gross profit EBIT before special items
Gross profit
Conversion ratio Operating margin
EBIT
(DKKm) (DKKm) (DKKm)
20,000
16,000
12,000
8,000
4,000
0
7,500
6,000
4,500
3,000
1,500
0
1,800
1,500
1,200
900
600
300
0
%%
2020 2020
2020
2021
2019 2019
2019
2018 2018
2018
2017 2017
2017
30
24
18
12
6
0
12
10
8
6
4
2
0
2021 2021
31 DSV Annual Report 2021 Financial and non-financial performance
Risk
management
Risk governance structure
As a global freight forwarder, we are exposed to a variety of risks that
are inherent to our operations. Managing these risks is an integrated
part of our management activities.
Our risk management framework is based on structured risk identifica-
tion, analysis and reporting processes, all of which provide the basis for
risk assessments and subsequent initiation of relevant mitigation actions.
Our flat organisational structure facilitates fast escalation and timely
response to issues that may have a material impact on the Group’s
earnings and financial and strategic targets.
The Board of Directors is responsible for the Group’s risk management
strategy and the overall framework for identifying and mitigating risks. The
Audit Committee supervises compliance with the established framework.
The Executive Board is responsible for the day-to-day risk management
processes as well as the continuous development of the Group’s risk
management activities.
Risk management
Our risk management process is structured into two parallel tracks:
1. Operational risk management – comprising continuous handling of vari-
ous identified risks resulting from our normal day-to-day operations;
2. Strategic risk management – addressing key risks and the more stra-
tegic mid- to long-term risk scenario in which we operate.
Operational risk management
Every week, operational risks and other matters of importance that arise as
part of the daily operation of our business are gathered across the organi-
sation, processed, and subsequently reported to the Executive Board and
senior management. The reporting also includes information on
actions taken to mitigate risks.
This weekly operational risk reporting forms the basis for the Executive
Board’s day-to-day risk management activities and serves as input for the
regular reporting to the Board of Directors and the Audit Committee.
The weekly operational risk reporting is also distributed at all management
levels across the organisation to create awareness and support proper
knowledge sharing on risks and other matters of importance to the Group.
Strategic risk management
The operational risk management process is followed up annually by
high-level strategic risk assessments. They focus on identifying and
mapping the key risks and climate risks facing the Group.
These assessments are based on input from the operational risk man-
agement process and from an extensive risk survey involving a large
number of key employees across functions, departments and regions.
The key risks identified are addressed by the Executive Board and as-
signed to risk owners within the Group to make sure that relevant pre-
ventive measures are implemented. In line with the established frame-
work, the key risks are reported to the Audit Committee and the Board
of Directors.
MitigationReportingRecording
Analysis and
assessment
Identification
Dynamic
risk adaption
Identified risks
are analysed to
determine cause,
impact and likelihood
of the risk occurring.
Risks are identified
using the Group’s
risk reporting and
analysis tools.
Identified key
risks are recorded
and prioritised. Risk
owners are allo cated to
identified key risks.
Ongoing key risk reassessment Tracking
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,
mitigation actions are
initiated immediately aer
risk identification.
32 DSV Annual Report 2021 Corporate governance and shareholder information
1
2
3
4
5
8
6
7
Key risk analysis
Our daily operations involve various financial risks; however,
these are not considered key risks. Our financial risks are
monitored by our Group Finance departments to ensure a
high level of management attention on the eectiveness of
our hedging strategies. Please refer to Chapter 4 of the notes
for additional information on our financial risks.
Key risk assessment 2021
The latest assessment of the Group’s internal and external
strategic risks was carried out in Q4 2021.
The analysis reconfirmed the seven overall key risk areas, also
identified in previous years, which may have a significant impact
on the Group’s earnings, financial position and our ability to
achieve other strategic objectives – should these risks materialise.
In 2021, climate risk – that is, the risk that DSV fails to miti-
gate and adapt to the inherent risks of climate change – has
been added to the list of key risks.
The results of the risk analysis are presented in the adjacent risk
map and described in greater detail in the following pages. The
indicated likelihood of occurrence and worst-case annual EBIT
impact are based on our best estimates, taking mitigation strat-
egies into consideration. However, we wish to mention that
these scenarios are associated with some degree of uncertainty.
1
IT
System and process
breakdown
2
Macroeconomy
Recession and regional
exposure
3
Employees
Employee retention
and attraction
4
Compliance
Fines, claims and
damages, etc.
5
M&A
Acquisitions and
integration
6
Technology
Disruption and
technological adoption
7
Com mercial
Failure to execute on
organic growth strategy
8
Climate risk (new)
Failure to adapt to
and mitigating risks
from climate change
Likelihood of
occurrence
Above DKK
2,000 million
2021
2020
Up to DKK
500 million
Estimated worst-case
annual EBIT impact
in case of occurence
Almost
certain
Moderate LikelyUnlikelyRare
Key risk map
33 DSV Annual Report 2021 Corporate governance and shareholder information
Risk description
IT systems, networks and related processes are crucial to our day-to-
day operations – from the delivery of our core logistics services to our
analytic capabilities and reporting to the financial markets.
This makes us vulnerable to system outages, cyberattacks and failed
IT implementation.
We rely on the scalability of our systems, continuous innovation and im-
provement of our IT landscape to be able to oer competitive services
that meet our customers’ expectations; to improve our productivity; and
to respond to new business opportunities as they arise. Our current Road
Way Forward project is a good example of a strategic IT project.
Mitigation strategies
Consolidation, centralisation and standardisation of our systems and pro-
cesses are cornerstones of our IT strategy. This strategy also applies to
acquired companies, which we move to our operational and administra-
tive IT platforms as quickly as possible, only retaining systems that add
additional value and which are not duplicated by our existing systems.
Our Group IT department oversees IT risks globally. In cooperation with
the rest of the organisation, Group IT undertakes the implementation and
operation of uniform systems, standards and controls; the decommis-
sioning of redundant systems; and oversees the coordinated reporting
on operational status, security risks, etc.
We focus on rolling out centrally managed solutions worldwide to reduce
the number of soware and hardware applications in use. This allows for
central management and monitoring of platforms, master data, control
systems and security functions.
The Executive Board always sponsors strategic IT projects, ensuring that
relevant and sucient resources are allocated to the projects and that
proactive monitoring is in place – and notifies Management if implemen-
tation starts deviating from plan.
Risk assessment 2021
In 2021, we experienced stable performance from our IT and security
systems – both in terms of operational stability and mitigation of cyber-
attacks, phishing attempts and other IT security risks. This track record
was achieved while still facing the challenge of running our business
with parts of our organisation working from home and other related
challenges wrought by the COVID-19 pandemic.
During the year, we also continued to invest and develop our IT infra-
structure and related processes, roll-out of centralised operational and
reporting systems, and extend our IT security measures.
The acquisition of Agility’s Global Integrated Logistics (GIL) in August
2021 has meant taking over a number of systems, servers and data
centers, although not to the same extent as was the case for our
Panalpina acquisition in 2019. The move of GIL operations and people
to the DSV IT platform is therefore expected to be executed faster and
with less risks than in previous acquisitions.
Everything considered, the IT risk of the Group remains on par with last
year, with a slight drop in risk of occurrence.
Risk description
An economic recession triggered by e.g. geopolitical events, distortion of
the financial markets or a global pandemic, will indirectly impact our ac-
tivity levels and consequently our financial results.
Similarly, protectionist measures enacted by the major world economic
powers can have a negative impact on overall economic growth, al-
though restrictions may be counterbalanced to some extent by increas-
ing domestic activities and demand for customs clearance and other
logistics services.
Finally, changing industry and consumer patterns leading to lower global
trade volumes – e.g., as a consequence of increasing environmental
awareness – is something we monitor closely, although we have yet to
see any impact of this on our business.
Mitigation strategies
To diversify our geographical exposure, we have for several years focused
on organic and acquisitive growth outside Europe, which has historically
been our main market.
We combine this strategy with a continued focus on staying true to our
asset-light business model and paying great attention to process and cost
optimisation.
Our asset-light approach implies that the majority of our terminals, ware-
houses and operational equipment are leased on short- to medium-term
contracts, with the average duration closely monitored to accommodate
capacity requirements.
This allows us to quickly adapt to any potential slowdown in individual
markets. We have a history of stable earnings margins, even in periods of
declining freight volumes.
Risk assessment 2021
The global economic impact of the COVID-19 pandemic has, similar to
the previous year, been high on the agenda for 2021. However, by tak-
ing advantage of our scalable business model, emphasising a dedicated
focus on keeping costs in check, and by executing on the business op-
portunities emerging from the distortion to the global supply chains
wrought by the pandemic, we have still managed to deliver all-time high
financial results.
This achievement – combined with the power of scale, more diversified re-
gional exposure, and the freight forwarding opportunities gained by the
Panalpina acquisition in 2019 and the acquisition of GIL in August 2021 –
has further strengthened our business. It has also made us less vulnerable
to changes in the European economy compared to before the acquisitions
and allowed us to better ride the storm in scenarios of global downturns.
As such, the macroeconomic risk exposure of the Group is considered
largely unchanged from last year.
IT
System
and process
breakdowns
Macro-
economy
Recession
and regional
exposure
34 DSV Annual Report 2021 Corporate governance and shareholder information
Risk description
Employees are a vital resource to DSV.
Our business depends on highly-qualified management teams and em-
ployees with technical and operational qualifications at all organisational
levels – who are capable of handling situations that are out of the ordi-
nary and collectively contributing to the Group’s financial results.
Failure to attract new talent or to retain existing, experienced key em-
ployees can potentially have long-term consequences for the opera-
tional, strategic and financial development of the Group.
Mitigation strategies
To retain and attract the right colleagues, we strive to ensure that our
company is an attractive place to work.
Across the organisation, we aim to oer a supportive and inspiring work-
ing environment for all employees. This includes a good and safe physical
environment in oces and warehouses, user-friendly IT systems and a
healthy psychological environment – all of which are to be ensured
through good leadership, transparency and mutual respect.
We have established a performance culture based on employee em-
powerment, enabling our employees to influence their everyday work
life. Additionally, we oer clear career-advancing opportunities to tal-
ented employees.
We implement this strategy through several initiatives driven by both lo-
cal management teams and our Group HR department. Examples include
our updated Inclusion and Diversity Policy, employer branding activities
and talent development programmes.
Risk assessment 2021
Although the world has been through a global pandemic in the past
years – which has had a derived eect on the global economy – this
has not aected the job market for skilled and experienced specialists
or managers. In fact, many of the countries in which we operate are
experiencing heated job markets, making it challenging to recruit new
candidates for open positions and retain existing colleagues.
During integrations we strive to maintain a high level of information
towards the sta and to carry out the changes as quickly as possible,
to avoid a prolonged period of uncertainty.
Still, the acquisition and integration of GIL will inherently carry uncer-
tainties when it comes to key employee retention in both the DSV and
former GIL organisations, as a consequence of the restructuring and
reorganisations taking place during the integration phase.
We are seeing these challenges reflected in our employee turnover rate,
although still at a manageable level. Still, as a consequence, the employee
key risk has slightly increased in 2021.
Risk description
At all levels of our organisation and in all the countries we do business,
we are committed to honest and ethical business practices and comply-
ing with all relevant local regulations.
As a result of our global operations, we are subject to extensive national
and international regulatory requirements. In particular, regulations relat-
ing to tax, customs, VAT, data privacy and competition law continue to
increase in scope and complexity. Trade embargoes impacting interna-
tional transports is another area undergoing continuous changes.
Cases of non-compliance may carry a long-term impact on our public
reputation, which may negatively impact relationships with our custom-
ers and other stakeholders. Additionally, cases of non-compliance
may lead to fines, claims, etc., for the Group, our Management and
employees.
Mitigation strategies
'We do not deal in compliance' is a mantra which is well-known through-
out the DSV organisation. The high standards are set not only to safe-
guard the company and its employees, but simply because we believe it
is the right thing to do.
Our internal procedures, systems and employee training programmes
are designed to ensure compliance with relevant legislation and our
Code of Conduct.
Our compliance framework is integrated into our business processes, con-
taining clear guidelines on how to identify compliance-related issues and
how to act accordingly. In addition, communicating and creating aware-
ness of relevant issues is high on our agenda, enacted 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 the local business units.
Risk assessment 2021
Following the trend from previous years, regulatory requirements con-
tinue to expand in scope and complexity within areas such as interna-
tional taxation and transfer pricing, GDPR (data privacy) and goods/
country restrictions.
This year’s acquisition of GIL has added further to this complexity, as
the acquisition implied taking over new business activities, which, until
fully integrated, implied an increased risk of non-conformance with ex-
isting DSV compliance processes.
However, our previous history of successful integration of acquired
businesses into our compliance framework reassures us that we will
manage similarly on the GIL acquisition.
With regulatory complexity remaining high and the GIL acquisition add-
ing additional complexity, the overall compliance risk exposure is con-
sidered to be largely on par with last year.
Employees
Retention and
attraction failure
Com-
pliance
Fines, claims
and damages,
etc.
35 DSV Annual Report 2021 Corporate governance and shareholder information
Risk description
Growth through acquisitions is fundamental to our corporate strategy,
and the current DSV network is, to a large extent, a result of past strate-
gic acquisitions.
Acquisitions always entail a risk of unsuccessful integration of the ac-
quired company, which could result in cost synergies, strategic advan-
tages and economies of scale being delayed or not fully realised.
Deciding on, and carrying out, the wrong acquisition may be costly and
take up valuable resources that could have been spent on other potential
acquisition candidates.
Mitigation strategies
We have a history of successful integration of acquired companies and
realisation of expected synergies. This rests on several factors. First of
all, we stress the importance that any potential acquiree matches our
business model. During the due diligence process, we make sure to in-
volve the right people from our organisation, considering all vital aspects
of the business.
Our IT, reporting and operational systems are designed to be scalable
and to accommodate eective integration. This means that we are able
to integrate acquired companies quickly.
Large integrations are headed by an integration board, and the activities
are organised into work streams (operational, commercial, financial, IT,
legal, tax, etc.). Each work stream reports systematically on the progress
and risks during the entire process. The integration of operational activi-
ties is anchored with and led by local management teams, based on
guidance from Group Management. Local ownership ensures that ac-
quired activities are well integrated.
Risk assessment 2021
In August 2021, DSV acquired GIL in a DKK 30 billion business combi-
nation – making this the second-largest acquisition in the history of
our company.
An acquisition of this magnitude inherently implies an increased risk of
a negative financial impact occurring, should the integration fail and
the expected synergies not be fully realised.
As GIL is a well-run business, the experienced integration management
teams from previous DSV acquisitions intact, and the processes and
lessons learned from the UTi and Panalpina acquisitions fresh in mind,
the added risk of the GIL acquisition is considered manageable.
The integration is progressing according to plan. As there is still some
way to go before the GIL integration is complete, the M&A risk expo-
sure is still considered slightly higher in 2021 compared to last year.
However, the increase in risk is not at the same level as during previous
acquisitions for the reasons previously mentioned.
Risk description
As with most industries, the freight forwarding business is undergoing
gradual changes in terms of technological developments as well as the
competitive landscape, driven by both existing players and new entrants
to the market.
Currently, digitalisation and automation of processes (quoting, booking,
tracking, reporting and billing) are the most significant developments in
the freight forwarding industry. These developments imply an oppor-
tunity to optimise workflows and increase productivity, while also pro-
viding higher levels of service and product oerings to our customers.
Failure to keep up with, adapt to and utilise these new technological
opportunities will lead to gradual long-term loss of market share and earnings.
Mitigation strategies
Our overall mitigation approach focuses on monitoring of the logistics
market, technologies, customer oerings and other processes that could
potentially impact the way we do business. As highlighted in ‘A respon-
sive approach to technology and digitalisation’ (page 17), we see new
technologies as opportunities, not threats – and we are open to new
ideas and ways of working.
We focus on developing our services, systems and operational proce-
dures to ensure that we have a strong and competitive product oering
that meets customer needs and enables us to remain price competitive.
The aim of our IT strategy is to ensure that we can continue to benefit
from our scale and global network in the future as a classic freight
forwarder, while increasing our digital competences and utilising the ben-
efits of technology.
An indirect impact of new technologies and changes in the competitive
landscape is that some of the basic freight forwarding services are be-
coming increasingly commoditised, leading to increasing price pressure.
To compensate for this, we continuously seek to increase the scope of
value-added services towards our customers.
Risk assessment 2021
Failure to adapt the existing DSV business model to new technologies,
services or other related business opportunities is a risk that we take
seriously.
However, even though new technologies and related new ways of
doing business continue to emerge, we are still to see new innovations
that will have the potential to impact our core business in any signi-
ficant way in the near future.
Likewise, we feel confident that our current technological initiatives
will help us to stay competitive and on a par with developments in
our industry.
Consequently, the potential financial impact and likelihood of tech-
nology risks occurring remain largely unchanged from last year.
M&A
Acquisitions
and integration
failure
Tech-
nology
Disruption
and tech-
nological
adoption
36 DSV Annual Report 2021 Corporate governance and shareholder information
Risk description
With the acquisitions of UTi Worldwide in 2016, Panalpina in 2019 and
GIL in 2021, DSV has grown significantly in a few years, more than tri-
pling our revenue and the number of employees of the Group.
Our network and market position have been strengthened, but the
growth also carries challenges. While we integrate acquired companies
and as we grow, we must maintain a strong commercial focus and col-
laboration across the organisation.
Most of all, we must retain the focus on our customer’s needs, adapt to
market changes and develop our services to ensure that we have a clear
value proposition in the market. If we fail to adapt to these changes, our
ability to execute on our organic growth strategy will be impaired and
the long-term financial results of the Group will be impacted.
Mitigation strategies
Managing our commercial risk is anchored with the Executive Board and
the Group Executive 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 strategy and purpose,
our value proposition and which customer segments we target.
In 2021 the executive board was expanded, and it is a part of the new
COO role to support the strategic planning and drive strategic execution
across the organisation.
Through regular business reviews with divisions and our operational com-
panies in each country, Executive Management ensures that each division
and country is aligned with the Group’s strategy and policies. The business
reviews include financial performance, market situation, organisation,
local strategic initiatives, etc.
Risk assessment 2021
During 2021, the organisation has made good progress on several stra-
tegic projects to support future organic growth.
In both Road and Solutions, it is our estimate that we have taken market
shares in 2021, thanks to our strong market position, services and our
dedicated teams. In Air & Sea, the disruption of the global markets meant
that we focused more on servicing existing customers than on winning
new business. The acquisition of GIL further impaired our ability to gain
market shares short term, as parts of our organisation have been work-
ing on the integration of GIL and retaining its customers.
We go into 2022 with a stronger market position than ever, and as we
gradually put the GIL integration behind us, we are in a good position
to get back on the organic growth path in Air & Sea the coming years.
The risk assessment is unchanged from last year and management will
continue to ensure that our organisation has the right commercial focus
and works closely together in order to gain market share.
Risk description
The long-term negative eects of climate change suggested by the UN
and other organisations have the potential of significantly impacting our
industry. As such, it is a risk that we monitor closely.
Associated risks may manifest themselves as physical disruptions of our
logistic sites and operations or other forms of disruption in the global
transport lanes, triggered by an increasing number of extreme weather
events such as floods, storms and heatwaves.
Higher cost and complexity in running our business as a result of increas-
ing climate regulations, taxations and customer requirements may also
impact the financial results of our company – to the extent that we are
not able to transfer the associated costs to our customers.
Finally, increasing consumer climate awareness may also carry changes in
global supply and demand patterns, resulting in supply chains moving
closer to home markets. This could have a dampening eect on the long-
term growth potential on the intercontinental transport lanes.
Mitigation strategies
Like other areas, risk management for this area is anchored with the
Board of Directors. Furthermore, our Sustainability Board, headed up by
the Group CEO, is the executive management lead when it comes to
identifying, assessing and reporting on the development in climate-
related risk.
Our asset-light model enables us to adapt to changes in the market,
as we have not invested in specific transport equipment.
As part of our mitigation strategy, we include the potential impact from
climate changes when we plan our physical infrastructure. For example,
our new warehouses are designed to resist more extreme weather and
we choose locations where the risk of flooding is reduced.
To address the longer-term risk from climate change, we remain dedi-
cated to contributing to reducing global CO
2
emissions through our com-
mitment to the Science Based Targets initiative. We aim to achieve this
through a number of initiatives, such as continuing to invest in a modern
and energy-ecient infrastructure and supporting green innovations.
Risk assessment 2021
As reflected in our risk map, we are currently not seeing any significant finan-
cial impact on our business operations as a direct result of climate change.
2021 was the first year we applied a climate risk assessment based on
the principles from Task Force on Climate-related Financial Disclosures
(TCFD). The assessment helps guide us and improves our internal un-
derstanding of the impact of climate change on our business.
Taking into consideration the potential extreme long-term climate
change scenarios projected by the UN and others, this may very well
change in the future. However, at the current stage, making any pro-
jections on the long-term eects on our business involves a significant
degree of uncertainty and guesswork.
For additional details and results on our 2021 Task Force on Climate-
related Financial Disclosures (TCFD) climate risk assessment, please see
the DSV Sustainability Report 2021: https://www.dsv.com/en/
sustainability-reports
Com-
mercial
Failure to
execute
on organic
growth
strategy
Climate
Failure to
adapt to and
mitigate risks
from climate
change
37 DSV Annual Report 2021 Corporate governance and shareholder information
Corporate
governance
new CFO of the Group. Michael Ebbe has been with DSV for more than
15 years. Former Group CFO, Jens Lund took up a new position as Group
COO and Vice CEO responsible for developing and optimising the busi-
ness, our digital strategy, IT operations and the continued strengthening
of the Group’s infrastructure and global network. As such, the Executive
Board now consists of three members.
Board of Directors
Composition of the Board of Directors
In accordance with DSV’s Articles of Association, the Board of Directors
must comprise at least five and not more than nine Directors. Directors
are elected for a term of one year, and new Directors are elected accord-
ing to the Danish Companies Act.
In September 2021, Tarek Sultan Al-Essa joined the Board following the
acquisition of Agility's Global Integrated Logistics (GIL). As previous CEO
and current Deputy Chairman of Agility Public Warehousing Company
K.S.C.P., Tarek joins with substantial management experience within the
shipping and logistics industry and furthermore brings extended ESG
experience to the Board.
Competencies of the Board
The composition of the Board of Directors is intended to ensure that the
Board’s competency profile is diverse so that it is able to perform its duties
eectively. Overboarding is also taken into consideration when evaluating
the Board’s composition.
The current competencies required of Board members are: knowledge of the
transport sector, international commercial experience as well as experience
in strategy, M&A, risk management, IT, human resources and accounting.
See page 41 for a description of the individual Directors’ competencies
and experience.
Board of Directors' self-evaluation
Once a year, the Board of Directors performs a general evaluation of
the composition and competencies of the Board as well as the results
achieved that year. In this regard, diversity, overboarding, internal man-
agement cooperation, succession planning and focus areas for the coming
year are also considered.
The Chairman of the Board is responsible for initiating and running the
evaluation process. When completed, a report is presented to and
discussed by the Board.
In 2021, the Board of Directors has drawn on external help to conduct
the annual self-evaluation.
Management structure
Together, the Board of Directors and the Executive Board form the govern-
ing body of DSV. The ultimate authority rests with the shareholders at the
General Meeting.
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 the strategy, the
objectives set for the business and the overall day-to-day management of
the Group. It also contributes essential input to support the work done by
the Board of Directors.
The Board of Directors is responsible for setting up audit, nomination and
remuneration committees to perform various preparatory tasks relating to
key areas of responsibility of the Board.
The allocation of responsibilities between the Board of Directors and the
Executive Board is defined by our Rules of Procedure.
Division Management is responsible for the day-to-day management of
the operational activities in the divisions, all of which are supported by
centralised Group functions.
Composition of the Executive Board
In October 2021, the Executive Board was expanded as Michael Ebbe –
former Deputy Group CFO – joined the Board and took up the position as
Jens Bjørn Andersen
Oce CEO
Member since 2008
Born 1966
Jens H. Lund
Oce COO and Vice CEO
Member since 2002
Born 1969
Michael Ebbe
Oce CFO
Member since 2021
Born 1970
Executive Board
38 DSV Annual Report 2021 Corporate governance and shareholder information
The use of an external advisor helps to ensure an independent perspec-
tive on the Board of Directors’ work, reflecting an outside view of what
would otherwise be a purely internal assessment.
The evaluation process starts with the Board of Directors defining the
scope of the self-evaluation, taking into account recommendations pre-
sented by the external advisor.
The evaluation itself is prepared using a mix of questionnaires and inter-
views. All findings are analysed and collated in a feedback report, which is
subsequently presented to the Board of Directors.
One of the key topics arising from the self-evaluation process this year
centred around the Board’s mix of competencies in relation to operating in
a fast-changing world and being able to address current developments
within ESG and digitalisation, in particular.
Board of
Directors
Audit
Committee
Nomination
Committee
Remune ration
Committee
Thomas Plenborg 12/12 3/3 2/2 2/2
Jørgen Møller 12/12 - 2/2 2/2
Annette Sadolin 12/12 3/3 - -
Birgit W. Nørgaard 12/12 - 2/2 -
Marie-Louise Aamund 12/12 3/3 - -
Beat Walti 12/12 - - 2/2
Niels Smedegaard 12/12 2/3 - -
Tarek Sultan Al-Essa (elected September 2021) 2/2 - - -
Meeting attendance 2021
The report on the self-evaluation process concluded that no significant
remarks or actions were necessary. The report also validated that the
current composition of the Board was appropriate.
As such, the Board is considered to have the right competencies to ensure
the long-term value creation for our shareholders. The Board’s current
mix of competencies will be used as guidance for the composition of our
Board of Directors in the future.
Board meetings
In 2021, the Board of Directors held nine ordinary and three extraordinary
board meetings. The agenda for each meeting is defined according to the
annual cycle of the Board to ensure that the strategic and operational policy
framework of the Group is reviewed and always up to date.
Besides the work laid down in the annual cycle, the Board mainly focused
on the acquisition of Global Integrated Logistics (GIL) in 2021 as well as
adapting the business to the consequences of the COVID-19 pandemic.
Organisation
Air & SeaRoad Solutions
Board
Committees
Group
functions
Annual General Meeting
Board of Directors
Executive Board
Division Management
39 DSV Annual Report 2021 Corporate governance and shareholder information
Board committees
Three committees assist the Board of Directors within each of their areas
of responsibility. They evaluate and assess all material presented to the
Board of Directors to make sure that the Board of Directors has a solid
and informed basis for making its decisions.
The rules of procedure for the three committees are available at:
https://www.dsv.com/en/board-committees
Remuneration of the Board of Directors
and the Executive Board
Remuneration policy
Remuneration of the Board of Directors and the Executive Board is
carried out in accordance with the DSV Remuneration Policy as adopted
by the Annual General Meeting.
The purpose of the Remuneration Policy is to ensure that DSV is able to
attract and retain a qualified management team, to align management
and shareholder interest, and to create sucient incentive for the long-
term value creation of the Company.
At the Extraordinary General Meeting held in September 2021, an updated
Remuneration Policy was approved. Changes included the introduction of
ESG variables as basis for the granting of variable remuneration as well as the
removal of the option to grant discretionary bonuses to the Executive Board.
The new DSV Remuneration Policy is available at: https://www.dsv.com/
en/remuneration-policy
Remuneration report
The remuneration of the members of the Board of Directors and the
Executive Board is reported 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 Govern-
ance 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 apply the latest Recommenda-
tions 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 that we are acting in accordance with the principal inten-
tions of the Recommendations. The Board regularly assesses its proce-
dures based on the Recommendations.
DSV fully abided by the Recommendations in 2021.
Adherence to the Recommendations – including reporting on internal
controls and risk management systems applied as basis for the financial
reporting process – is reported in the Statutory Report on Corporate
Governance available at https://www.dsv .com/ en/ governance-r eports
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.
This report is found in our Statutory Report on Data Ethics, available at:
40 DSV Annual Report 2021 Corporate governance and shareholder information
Jørgen Møller
Oce Deputy Chairman
Member since 2015
Up for re-election Yes
Born 1950
Committee
Audit Committee -
Nomination Committee Member
Remuneration Committee Member
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
Oce Member
Member since 2019
Up for re-election Yes
Born 1968
Committee
Audit Committee -
Nomination Committee -
Remuneration Committee Member
Skills and experience
• Professional board and general management experience
• Acquisition and divestment of enterprises
• Dr. jur. and legal experience serving as an attorney-at-law
Other Board positions
CM Ernst Göhner Foundation, Zurzach Care AG
DC Rahn AG
ME EGS Beteiligungen Ltd, Wenger Vieli AG
Annette Sadolin
Oce Member
Member since 2009
Up for re-election No
Born 1947
Committee
Audit Committee Chairman
Nomination Committee -
Remuneration Committee -
Skills and experience
• General international management experience
• Acquisition and divestment of enterprises
Other Board positions
ME KNI A/S
Birgit W. Nørgaard
Oce Member
Member since 2010
Up for re-election Yes
Born 1958
Committee
Audit Committee -
Nomination Committee Member
Remuneration Committee -
Skills and experience
• General international management experience
• Acquisition and divestment of enterprises
• Strategy and financial management
Other Board positions
CM NO Invest A/S and two
related subsidiaries
DC NNE A/S
DC The Danish Council for ICT
DC Dansk Vækstkapital I
ME Dansk Vækstkapital II
ME NCC AB*
ME ABP Asspcoated British Ports
ME WSP Global Inc.*
ME RGS Nordic A/S
ME Consolis Group SAS
Niels Smedegaard
Oce Member
Member since 2020
Up for re-election Yes
Born 1962
Tarek Sultan Al-Essa
Oce Member
Member since 2021
Up for re-election 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 Molslinjen A/S
CM Abacus Medicine A/S
CM Bikubenfonden
Committee
Audit Committee -
Nomination Committee -
Remuneration Committee -
Skills and experience
• Extensive experience in shipping and logistics
• Acquisition and sale of enterprises
• General international management experience
• Extensive insight in Environmental, Social and
Governance regulation (ESG expert)
Other Board positions
DC Agility Public Warehousing Company K.S.C.P.*
Thomas Plenborg
Oce Chairman
Member since 2011
Up for re-election Yes
Born 1967
Board of Directors
Committee
Audit Committee Member
Nomination Committee Chairman
Remuneration Committee Chairman
Skills and experience
• Management experience from directorships and honorary oces
• Strategy and financial management
• Professor of accounting and auditing at Copenhagen Business
School
Marie-Louise Aamund
Oce Member
Member since 2019
Up for re-election Yes
Born 1969
Committee
Audit Committee Member
Nomination Committee -
Remuneration Committee -
Skills and experience
• General international management experience
• International tech leadership experience from Microso,
IBM and Google
• Digital transformation and sustainability
• Acquisition and divestment of enterprises
Other Board positions
CM Thinkproject GmbH ME KIRKBI A/S
ME The Lego Foundation ME WS Audiology A/S
CM = Chairman
DC = Deputy Chairman ME = Member * = Listed company
ME Falck A/S
ME UK P&I
ME TT Club
41 DSV Annual Report 2021 Corporate governance and shareholder information
Shareholder
information
Share price performance in 2021
At year-end, the closing price for DSV shares on Nasdaq
Copenhagen was DKK 1,527.5 – up 49.8% since year-end
2020. During the same period, the Danish C25 Index in-
creased by 17.2%.
The average daily trading volume of DSV shares on Nasdaq
Copenhagen was 358,548 shares in 2021 (0.1% of shares
issued).
At year-end, DSV’s market capitalisation (excluding treasury
shares) was DKK 358 billion against DKK 231 billion at the
end of 2020.
Ownership
On 31 December 2021, DSV had 86,073 registered share-
holders. The registered shares totalled 233 million, corre-
sponding to 97.1% of the share capital. The 25 largest share-
holders owned 59.6% 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 Stiung, Switzerland (9.7%)
• Agility Public Warehousing Company K.S.C.P, Kuwait (8.0%)
• BlackRock, Inc., USA (7.8%)
• Capital Group Companies, Inc., USA (5.1%)
• Morgan Stanley, USA (5.0%)
Cash distribution to shareholders
Our capital allocation principles are described on page 19.
DSV has increased both share buybacks and dividend paid
over the last five years.
Share buyback and treasury shares
In 2021, DSV acquired 13.3 million treasury shares at a total
purchase price of DKK 17,841 million (average purchase price
DKK 1,341.0 per share).
During 2021, 6 million treasury shares were cancelled in con-
nection with reduction of the registered share capital.
On 31 December 2021, DSV held 5.8 million shares as
treasury shares, corresponding to 2.43% of the share capital.
On 8 February 2022, our portfolio of treasury shares
amounted to 6.6 million shares.
Throughout 2021, we have engaged in three 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.
DSV share price
(DKK)
■ DSV ■ C25 rebased 01-01-2018
Shares issued
(‘000)
2017 2018 2019 2020 2021
Number of shares issued 190,000 188,000 235,000 230,000 240,000
Average number
of shares issued during
the past 12 months 186,028 182,092 198,273 227,246 227,501
Average diluted
number of shares during
the past 12 months 189,112 185,287 201,405 231,576 232,639
31/12 201831/12 2017 31/12 2019 31/12 2020 31/12 2021
1.800
1.600
1.400
1.200
1.000
800
600
400
200
0
42 DSV Annual Report 2021 Corporate governance and shareholder information
Company announcements
In 2021, we published 83 company announcements (Nos. 853-
935). The most important of these are listed in the chart below:
10 Feb. No. 861 Annual Report 2020
15 Mar. No. 873 Annual General Meeting
27 Apr. No. 881 DSV to acquire Agility’s Global
Integrated Logistics Business
27 Apr. No. 882 Interim Financial Report – Q1
11 Jun. No. 890 Upgrade of financial outlook for 2021
29 Jul. No. 900 Interim Financial Report – Q2
16 Aug. No 903 Capital increase by DKK 16,000,000
16 Aug. No. 904 Completion of the acquisition of Agility’s
Global Integrated Logistics Business
8 Sep. No. 913 Extraordinary General Meeting of
DSV A/S 8 September 2021
11 Oct. No. 920 Trading update for Q3 2021 and
upgrade of financial outlook for 2021
26 Oct. No. 924 Interim Financial Report – Q3
26 Oct. No. 926 DSV expands Executive Board
Number of shares of DKK 1 on 31 Dec. 2021 240,000,000
Share classes 1
Restrictions on transferability and voting rights None
Listed Nasdaq Copenhagen
Trading symbol DSV
ISIN code DK0060079531
DSV share data
Dividends
The Board of Directors proposes an ordinary dividend of
DKK 5.5 per share for 2021. The ordinary dividend per share
in 2020 was DKK 4.00.
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 share-
holders. This authority remains valid until 8 September 2026;
and
• to acquire up to 22.4 million own shares, of which 10.4 million
was utilised as per 8 February 2022. This authority remains valid
until 15 March 2026. At the next Annual General Meeting, the
Board of Directors intends to propose a renewal of this authority.
Share capital reduction
Following the acquisition of treasury shares, the Board of
Directors intends to propose to the 2022 Annual General
Meeting that the Board be authorised to reduce the share
capital by a nominal value of DKK 6 million.
Communication with shareholders
Through open and proactive communication, we wish to pro-
vide the basis for fair and ecient pricing of the DSV share.
To keep investors and other stakeholders up to date with the
latest developments, our Executive Management host confer-
ence 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 virtual road-
shows and virtual 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 approximately
25 equity analysts. For more information about analyst coverage,
please visit investor.dsv.com
Financial calendar
The financial calendar
for 2022 is as follows:
Annual General Meeting
17 March
Q1 2022 Report
27 April
H1 2022 Report
26 July
Q3 2022 Report
25 October
Denmark
%
Ireland
%
Kuwait
%
Luxembourg
%
UK
%
Switzerland
%
USA
%
Other
%
The geographical distribution
of our shareholders
43 DSV Annual Report 2021 Corporate governance and shareholder information
2021 2020
Q1 Q2 Q3 Q4 Full year Q1 Q2 Q3 Q4 Full year
Income statement (DKKm)
Revenue* 33,616 37,831 49,557 61,302 182,306 27,309 28,782 28,125 31,716 115,932
Gross profit* 7,785 8,333 9,823 11,674 37,615 6,684 7,386 7,252 7,212 28,534
EBIT before special items* 3,067 3,571 4,472 5,113 16,223 1,566 2,613 2,725 2,616 9,520
Operating margin (%) 9.1 9.4 9.0 8.3 8.9 5.7 9.1 9.7 8.2 8.2
Conversion ratio (%) 39.4 42.9 45.5 43.8 43.1 23.4 35.4 37.6 36.3 33.4
ROIC before tax (%) (trailing 12 months) 16.4 17.8 16.6 19.6 19.6 13.7 16.0 12.9 14.3 14.3
Invested capital (YTD) 66,420 67,690 100,316 101,231 101,231 67,868 66,546 65,018 64,285 64,285
Segment information (DKKm)
Air & Sea
Revenue 22,924 25,948 36,861 46,168 131,901 16,674 19,144 17,910 19,961 73,689
Gross profit 4,788 5,142 6,314 7,525 23,769 3,875 4,663 4,303 4,068 16,909
EBIT before special items 2,393 2,843 3,521 4,011 12,768 1,130 2,112 1,994 1,790 7,026
Operating margin (%) 10.4 11.0 9.6 8.7 9.7 6.8 11.0 11.1 9.0 9.5
Conversion ratio (%) 50.0 55.3 55.8 53.3 53.7 29.2 45.3 46.3 44.0 41.6
Road
Revenue 8,056 8,663 8,783 9,914 35,416 7,921 6,987 7,521 7,966 30,395
Gross profit 1,657 1,768 1,745 1,925 7,095 1,535 1,431 1,585 1,587 6,138
EBIT before special items 403 476 465 513 1,857 259 263 448 420 1,390
Operating margin (%)
5.0 5.5 5.3
5.2 5.2
3.3 3.8 6.0
5.3 4.6
Conversion ratio (%) 24.3 26.9 26.6 26.6 26.2 16.9 18.4 28.3 26.5 22.6
Solutions
Revenue 3,609 3,997 4,739 6,389 18,734 3,441 3,256 3,388 4,523 14,608
Gross profit 1,348 1,377 1,717 2,211 6,653 1,256 1,271 1,313 1,529 5,369
EBIT before special items 263 278 486 748 1,775 159 234 312 456 1,161
Operating margin (%) 7.3 7.0 10.3 11.7 9.5 4.6 7.2 9.2 10.1 7.9
Conversion ratio (%) 19.5 20.2 28.3 33.8 26.7 12.7 18.4 23.8 29.8 21.6
Please refer to page 85 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 EBIT before special items.
Quarterly financial highlights
44 DSV Annual Report 2021 Other information
Consolidated
financial
statements
Income statement .............................................46
Statement of comprehensive income............................46
Cash flow statement .......................................... 47
Balance sheet ................................................. 48
Statement of changes in equity................................. 49
Notes......................................................... 50
45 DSV Annual Report 2021 Consolidated financial statements 2021
Income statement Statement of comprehensive income
(DKKm) Note 2021 2020
Revenue 2.2 182,306 115,932
Direct costs 2.3 144,691 87,398
Gross profit 37,615 28,534
Other external expenses 2.4 4,173 3,291
Sta costs 2.5 13,025 11,684
Operating profit before amortisation and depreciation (EBITDA)
before special items 20,417 13,559
Amortisation and depreciation 2.6 4,194 4,039
Operating profit (EBIT) before special items 16,223 9,520
Special items, costs 2.7 478 2,164
Financial income 2.8 206 254
Financial expenses 2.8 1,047 1,983
Profit before tax 14,904 5,627
Tax on profit for the year 5.1 3,650 1,369
Profit for the year 11,254 4,258
Profit for the year attributable to:
Shareholders of DSV A/S 11,205 4,250
Non-controlling interests 49 8
Earnings per share: 4.6
Earnings per share of DKK 1 49.3 18.7
Diluted earnings per share of DKK 1 48.2 18.4
(DKKm) Note 2021 2020
Profit for the year 11,254 4,258
Items that may be reclassified to the income statement when certain conditions are met:
Net foreign exchange dierences recognised in OCI 2,472 (2,577 )
Fair value adjustments relating to hedging instruments 4.5 (21 ) (1 )
Fair value adjustments relating to hedging instruments transferred to financial expenses 4.5 6 18
Tax on items reclassified to the income statement 5.1 3 (3 )
Items that will not be reclassified to the income statement:
Actuarial gains/(losses) 3.7 555 18
Tax relating to items that will not be reclassified 5.1 (119 ) (5 )
Other comprehensive income, net of tax 2,896 (2,550 )
Total comprehensive income 14,150 1,708
Total comprehensive income attributable to:
Shareholders of DSV A/S 14,109 1,691
Non-controlling interests 41 17
Total 14,150 1,708
46 DSV Annual Report 2021 Consolidated financial statements 2021
Cash flow statement
(DKKm) Note 2021 2020
Operating profit before amortisation and depreciation (EBITDA)
before special items 20,417 13,559
Adjustments:
Share-based payments 6.2 160 134
Change in provisions 105 93
Change in working capital etc. (4,604 ) 209
Special items 2.7 (828 ) (1,944 )
Interest received 153 225
Interest paid, lease liability (495 ) (434 )
Interest paid, other (443 ) (499 )
Income tax paid (2,263 ) (1,067 )
Cash flow from operating activities 12,202 10,276
Purchase of intangible assets 3.2 (303 ) (220 )
Purchase of property, plant and equipment 3.3 (1,180 ) (1,121 )
Disposal of intangible assets, property, plant and equipment 3.3 420 803
Acquisition and disposal of subsidiaries and activities 6.1 1,631 (140 )
Change in other financial assets (148 ) 122
Cash flow from investing activities 420 (556 )
Free cash flow 12,622 9,720
Proceeds from borrowings 4.3 12,834 4,108
Repayment of borrowings 4.3 (489 ) (3,243 )
Repayment of lease liabilities 3.6 (3,160 ) (3,058 )
Other financial liabilities incurred 118 5
(DKKm) Note 2021 2020
Transactions with shareholders:
Dividends distributed 4.2 (920 ) (588 )
Purchase of treasury shares 4.1 (17,841 ) (5,031 )
Sale of treasury shares 4.1 784 818
Other transactions with shareholders (6 ) (10 )
Cash flow from financing activities (8,680 ) (6,999 )
Cash flow for the year 3,942 2,721
Cash and cash equivalents 1 January 4,060 2,043
Cash flow for the year 3,942 2,721
Currency translation 297 (704 )
Cash and cash equivalents 31 December 4.2 8,299 4,060
The cash flow statement cannot be directly derived from the balance sheet and income statement.
Statement of adjusted free cash flow (DKKm) Note 2021 2020
Free cash flow 12,622 9,720
Net acquisition of subsidiaries and activities (reversed) 6.1 (1,631) 140
Special items (reversed) 2.7 828 1,944
Repayment of lease liabilities (3,160) (3,058)
Adjusted free cash flow 8,659 8,746
Enterprise value of acquirees (DKKm) Note 2021 2020
Net acquisition of subsidaries and activities * 29,686 140
Interest-bearing debt 989 275
Enterprise value of acquirees 30,675 415
* Fair value of total consideration excluding cash and cash equivalents.
47 DSV Annual Report 2021 Consolidated financial statements 2021
Balance sheet
Assets (DKKm) Note 2021 2020
Intangible assets 3.2 76,661 48,665
Right-of-use (ROU) assets 3.6 13,709 11,111
Property, plant and equipment 3.3 6,262 3,014
Other receivables 2,395 372
Deferred tax assets 5.2 3,544 2,536
Total non-current assets 102,571 65,698
Trade receivables 4.4 36,369 19,038
Contract assets 3.4 9,797 3,283
Inventories 3.5 284 1,426
Other receivables 4,009 2,635
Cash and cash equivalents 8,299 4,060
Assets held for sale 66 110
Total current assets 58,824 30,552
Total assets 161,395 96,250
Equity and liabilities (DKKm) Note 2021 2020
Share capital 4.1 240 230
Reserves and retained earnings 4.1 73,863 47,155
DSV A/S shareholders’ share of equity 74,103 47,385
Non-controlling interests 175 (88 )
Total equity 74,278 47,297
Lease liabilities 3.6 11,848 9,428
Borrowings 4.3 16,993 7,696
Pensions and similar obligations 3.7 908 1,219
Provisions 3.8 3,508 1,253
Deferred tax liabilities 5.2 447 243
Total non-current liabilities 33,704 19,839
Lease liabilities 3.6 3,440 2,850
Borrowings 4.3 4,472 1,185
Trade payables 4.4 17,040 9,926
Accrued cost of services 3.4 13,289 5,913
Provisions 3.8 1,841 1,525
Other payables 10,257 6,316
Tax payables 3,074 1,399
Total current liabilities 53,413 29,114
Total liabilities 87,117 48,953
Total equity and liabilities 161,395 96,250
48 DSV Annual Report 2021 Consolidated financial statements 2021
Statement of changes in equity
2021 2020
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 230 (2,836 ) 49,991 47,385 (88 ) 47,297 235 (265 ) 49,460 49,430 (111 ) 49,319
Profit for the year - - 11,205 11,205 49 11,254 - - 4,250 4,250 8 4,258
Other comprehensive income, net of tax - 2,482 422 2,904 (8 ) 2,896 - (2,573 ) 14 (2,559 ) 9 (2,550 )
Total comprehensive income for the year - 2,482 11,627 14,109 41 14,150 - (2,573 ) 4,264 1,691 17 1,708
Transactions with shareholders:
Share-based payments - - 160 160 - 160 - - 134 134 - 134
Tax on share-based payments - - 791 791 - 791 - - 383 383 - 383
Dividends distributed - - (920 ) (920 ) (7 ) (927 ) - - (588 ) (588 ) (3 ) (591 )
Purchase of treasury shares - (13 ) (17,828 ) (17,841 ) - (17,841 ) - (6 ) (5,025 ) (5,031 ) - (5,031 )
Sale of treasury shares - 2 782 784 - 784 - 3 1,367 1,370 - 1,370
Capital increase 16 - 24,479 24,495 - 24,495 - - - - - -
Capital reduction (6 ) 6 - - - - (5 ) 5 - - - -
Transfer of treasury shares as business combination
consideration - 3 5,073 5,076 - 5,076 - - - - - -
Addition/disposal of non-controlling interests - - - - 273 273 - - - - 1 1
Dividends on treasury shares - - 28 28 - 28 - - 23 23 - 23
Other adjustments - - 36 36 (44 ) (8 ) - - (27 ) (27 ) 8 (19 )
Total transactions with shareholders 10 (2 ) 12,601 12,609 222 12,831 (5 ) 2 (3,733 ) (3,736 ) 6 (3,730 )
Equity at 31 December 240 (356 ) 74,219 74,103 175 74,278 230 (2,836 ) 49,991 47,385 (88 ) 47,297
* For a specification of reserves, please see note 4.1.
49 DSV Annual Report 2021 Consolidated financial statements 2021
Chapter 1
Basis of preparation
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Basis of measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Changes in accounting policies . . . . . . . . . . . . . . . . . . . . . . 51
Management judgements and estimates . . . . . . . . . . . . . . . . 51
Basis of consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Foreign currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Presentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
New accounting regulations . . . . . . . . . . . . . . . . . . . . . . . . 52
Chapter 2
Profit for the year
2.1 Segment information. . . . . . . . . . . . . . . . . . . . . . . . . 53
2.2 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
2.3 Direct costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.4 Other external expenses. . . . . . . . . . . . . . . . . . . . . . . 56
2.5 Sta costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.6 Amortisation and depreciation . . . . . . . . . . . . . . . . . . . 56
2.7 Special items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
2.8 Financial income and expenses . . . . . . . . . . . . . . . . . . . 57
Chapter 3
Operating assets and liabilities
3.1 Impairment testing . . . . . . . . . . . . . . . . . . . . . . . . . . 58
3.2 Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.3 Property, plant and equipment . . . . . . . . . . . . . . . . . . . 61
3.4 Contract assets and accrued costs of services . . . . . . . . . . 62
3.5 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.6 Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
3.7 Pension obligations . . . . . . . . . . . . . . . . . . . . . . . . . . 64
3.8 Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Chapter 4
Capital structure and finances
4.1 Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
4.2 Capital structure and capital allocation . . . . . . . . . . . . . . . 68
4.3 Financial liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . 69
4.4 Financial risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
4.5 Derivative financial instruments. . . . . . . . . . . . . . . . . . . 73
4.6 Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . 74
4.7 Financial instruments – fair value hierarchy . . . . . . . . . . . . 74
Chapter 5
Tax
5.1 Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
5.2 Deferred tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Chapter 6
Other notes
6.1 Acquisition and disposal of entities . . . . . . . . . . . . . . . . . 78
6.2 Share option schemes . . . . . . . . . . . . . . . . . . . . . . . . 81
6.3 Remuneration of the Executive Board and
the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . 83
6.4 Fees to auditors appointed at the
Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . 83
6.5 Related-party transactions . . . . . . . . . . . . . . . . . . . . . 84
6.6 Contingent liabilities and security for debt. . . . . . . . . . . . . 84
Table of contents
Notes to the
consolidated
financial
statements
50 DSV Annual Report 2021 Consolidated financial statements 2021
Chapter 1
Introduction
The Annual Report of DSV A /S comprises the consolidated financial
statements of DSV A/S and its subsidiaries.
The Board of Directors and Executive Board considered and approved
the 2021 Annual Report of DSV A/S on 9 February 2022. The Annual
Report will be submitted to the shareholders of DSV A/S for approval at
the Annual General Meeting on 17 March 2022.
Basis of measurement
All amounts in the Annual Report are stated in Danish kroner (DKK)
and rounded to the nearest million. The Annual Report has been prepared
under the historical cost convention with the exception of derivative
financial instruments and acquisition opening balances, which are meas-
ured at fair value. Non-current assets held for sale are measured at the
lower of their carrying amount and fair value less costs to sell. The
accounting policies described in the notes have been applied consistently
for the financial year and for the comparative figures.
Changes in accounting policies
All amendments to the International Financial Reporting Standards
(IFRS) eective for the financial year 2021 have been implemented as
basis for preparing the consolidated financial statements and notes to
the statements.
None of the implementations has had any material impact on the state-
ments or notes presented.
Management judgements and estimates
In preparing the consolidated financial statements, Management makes
various accounting judgements and estimates that aect the reported
amounts and disclosures in the financial statements and notes to the
statements. These are based on professional experience, historical data
and other factors available to Management.
By nature, a degree of uncertainty 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 eects of any changes are recognised
in the relevant period.
The primary financial statements items for which more significant
accounting estimates are applied are listed below:
• Contract assets and accrued cost of services (note 3.4)
• Provisions (note 3.8)
• Acquisition and disposal of entities (note 6.1)
• Tax (note 5.1 and note 5.2)
Additional description of management judgements and estimates made
are provided in the relevant notes.
Basis of consolidation
The consolidated financial statements include the Parent Company (DSV
A/S) and all subsidiaries over which DSV A/S exercises control. Entities
in which the Group directly or indirectly controls at least 20%, but not
more than 50%, of the voting power are accounted for as associates and
measured using the equity method. Investments with negative net asset
values are recognised at DKK 0.
The consolidated financial statements are prepared based on uniform
accounting policies in all Group entities. Consolidation of Group entities
is performed aer elimination of all intra-group transactions, balances,
income and expenses.
Basis of
preparation
The 2021 Annual Report of DSV A/S has
been prepared in accordance with the
International Financial Reporting Standards
(IFRS) as issued by the International
Accounting Standards Board (IASB) and
additional disclosure requirements in the
Danish Financial Statements Act.
IFRS standards have been applied to the
extent these have been endorsed by the
European Union.
51 DSV Annual Report 2021 Consolidated financial statements 2021
Group composition
The Group holds interests in 570 entities and was composed as follows
at 31 December 2021:
Entities
(Number)
Region
EMEA Americas APAC Total
Subsidiaries 356 68 134 558
Associates 8 1 3 12
Foreign currency
Functional currency
A functional currency is determined for each Group entity. The functional
currency is the currency used in the primary financial environment in
which the individual Group entity operates.
Foreign currency translation
On initial recognition, foreign currency transactions are translated into
the functional currency at the exchange rate at the transaction dates.
Foreign currency translation dierences between the exchange rates
at the transaction date and the date of payment are recognised in the
income statement under financials.
Monetary items denominated in a foreign currency are translated at the
exchange rate at the reporting date. The dierence between the ex-
change rates at the reporting date and the transaction date or the ex-
change rate used in the latest annual report is recognised in the income
statement under financials.
Foreign currency translation dierences arising on the translation of
non-monetary items, such as investments in associates, are recognised
directly in other comprehensive income.
Recognition in the consolidated financial statements
On preparation of the consolidated financial statements, the income
statements of entities with a functional currency other than DKK are
translated at the average exchange rate for the period, and balance sheet
items are translated at the closing rate at the end of the reporting period.
Foreign exchange dierences arising on translation of the equity of for-
eign entities and on translation of receivables considered part of net
investment are recognised directly in other comprehensive income.
Foreign exchange dierences arising on the translation of income state-
ments from the average exchange rate for the period to the exchange rate
at the reporting date are also recognised in other comprehensive income.
Adjustments are presented under a separate translation reserve in equity.
Presentation
Cash flow statement
The cash flow statement is prepared using the indirect method based on
operating profit before amortisation, depreciation and special items. The
cash flow statement cannot be derived directly from the balance sheet
and income statement.
Materiality in financial reporting
In preparing the Annual Report, Management seeks to improve the in-
formation value of the consolidated financial statements, the notes to
the statements and other measures disclosed by presenting the informa-
tion in a way that supports the understanding of the Group’s perfor-
mance in the reporting period.
This objective is achieved by presenting fair transactional aggregation
levels on items and other financial information, emphasising information
that is considered of material importance to the user and making rele-
vant rather than generic descriptions throughout the Annual Report.
All disclosures are made in compliance with the International Financial
Reporting Standards, the Danish Financial Statements Act and other
relevant regulations, ensuring a true and fair view throughout the
Annual Report.
Presentation of items and subtotals
The presentation of items and subtotals is based on separate classifica-
tion of material groups of similar items. In the income statement, income
and expense items are classified based on the ‘nature of expense’
method in accordance with IAS 1. Furthermore, the use of special items
is applied to improve the transparency and understanding of the Group’s
financial statements by separating the core performance of the Group
from exceptional items. For a definition and reconciliation of Group re-
sults before and aer special items, please see note 2.7 Special items.
New accounting regulations
The IASB has issued a number of new standards and amendments not
yet in eect or adopted by the EU and therefore not relevant for the
preparation of the 2021 consolidated financial statements. DSV expects
to implement these standards when they take eect.
None of the new standards issued are currently expected to have any
significant impact on the Group’s financial statements when implemented.
52 DSV Annual Report 2021 Consolidated financial statements 2021
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.
Accounting policies
Operating segments are defined by the operational and management
structure of DSV, which is derived from the types of services we deliver
and our geographical presence on the world market. As such, our oper-
ating segments reflect our divisional and Group reporting used for
management decision-making.
Operating segments
Our business operations are carried out by three divisions, forming the
basis of our segment reporting.
Air & Sea
The Air & Sea division provides air and sea freight services across the globe.
This includes a special Projects department, handling out of gauge cargo
and special transportation projects.
Road
The Road division provides road freight services across Europe, Middle
East, North America and South Africa.
Solutions
The Solutions division oers contract logistics services, incl. warehousing
and inventory management, across the globe.
Measurement of earnings by segment
Our business segments are measured and reported down to operating
profit before special items. Segment results are accounted for in the
same way as in the consolidated financial statements.
Segment income/expenses and assets/liabilities comprise the items
directly attributable to the individual segment as well as the items that
may be allocated to the individual segment on a reliable basis.
Income and expenses relating to Group functions, investing activities,
etc., are managed at Group level. These items are not included in the
2.1 Segment information
statement of segment information, but are presented under ‘Non-
allocated items and eliminations’.
Financial position of business segments
Assets and liabilities are included in the segmental reporting to the
extent they are used for the operation of the segment.
Assets and liabilities that cannot be attributed to any of the three
segments on a reliable basis are presented under ‘Non-allocated items
and eliminations’.
Geographical information
DSV operates in most parts of the world and has activities in more than
90 countries, which are divided into the following geographical regions:
• EMEA: Europe, Middle East and Africa
• Americas: North and South America
• APAC: Asia, Australia and the Pacific
Revenue and non-current assets are allocated to the geographical areas
according to the country in which the individual consolidated entity is
based. The corporate headquarter of DSV is located in Denmark, which
is included in the EMEA segment. DSV business is based on transactions
in our global network rather than in individual countries or regions.
Therefore, goodwill is not allocated to regions.
Intersegment transactions are made on an arm’s length basis.
Major customers
DSV is not reliant on any major customers. No single customer exceeds
5% of combined Group revenue.
53 DSV Annual Report 2021 Consolidated financial statements 2021
2.1 Segment information — continued
Segment information – divisions (DKKm)
Air & Sea Road Solutions
Non-allocated items
and eliminations Tot a l
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Condensed income statement and balance sheet
Revenue 130,899 73,032 33,077 28,410 17,989 13,747 341 743 182,306 115,932
Intercompany revenue 1,002 657 2,339 1,985 745 861 (4,086) (3,503) - -
Divisional revenue 131,901 73,689 35,416 30,395 18,734 14,608 (3,745) (2,760) 182,306 115,932
Direct costs 108,132 56,780 28,321 24,257 12,081 9,239 (3,843) (2,878) 144,691 87,398
Gross profit 23,769 16,909 7,095 6,138 6,653 5,369 98 118 37,615 28,534
Other external expenses 3,366 2,870 1,122 1,021 1,338 1,089 (1,653) (1,689) 4,173 3,291
Sta costs 6,598 6,048 3,149 2,799 1,664 1,449 1,614 1,388 13,025 11,684
Operating profit before amortisation, depreciation and special items 13,805 7,991 2,824 2,318 3,651 2,831 137 419 20,417 13,559
Amortisation and depreciation 1,037 965 967 928 1,876 1,670 314 476 4,194 4,039
Operating profit before special items* 12,768 7,026 1,857 1,390 1,775 1,161 (177) (57) 16,223 9,520
Total gross investments 17,262 1,233 1,958 1,161 4,118 1,754 7,864 369 31,202 4,517
Total assets 96,879 51,047 24,135 22,123 26,245 16,024 14,136 7,056 161,395 96,250
Total liabilities 79,824 50,560 18,883 16,107 20,310 12,435 (31,900) (30,149) 87,117 48,953
Geographical information – major countries
(DKKm)
Revenue Non-current assets**
2021 2020 2021 2020
USA 36,532 19,386 1,715 882
Denmark 17,452 10,200 4,774 2,120
Germany 15,061 10,727 1,523 1,609
United Kingdom 7,807 4,146 813 671
Italy 7,190 4,288 854 835
Other 98,264 67,185 13,439 9,088
Total 182,306 115,932 23,118 15,205
Geographical information – regions
(DKKm)
Revenue Non-current assets**
2021 2020 2021 2020
EMEA 106,701 72,639 18,154 12,294
Americas 51,061 28,191 2,542 1,632
APAC 24,544 15,102 2,422 1,279
Total 182,306 115,932 23,118 15,205
** Non-current assets less tax assets, customer relationships and goodwill.
* Reference is made to the income statement for a reconciliation from operating profit before special items to profit for the year.
54 DSV Annual Report 2021 Consolidated financial statements 2021
2.2 Revenue
Accounting policies
Revenue comprises freight forwarding services, contract logistics and
other related services delivered in the finan cial year.
Revenue from services delivered is recognised in accordance with the
over-time recognition principle following the satisfaction of various mile-
stones as the performance obligation is fulfilled towards the customer.
Our main services comprise air, sea, road and solutions services as de-
scribed in the following.
Air services
Air services comprise air freight logistics facilitating transportation of
goods across the globe. Air services are reported within the Air & Sea
reporting segment. Air services are characterised by short delivery times
as most air transports are completed within a few days.
Sea services
Sea services comprise sea freight logistics facilitating transportation of
goods across the globe. Sea services are reported within the Air & Sea
reporting segment. Sea services are characterised by longer delivery
times, averaging one month depending on destination.
Road services
Road services comprise road freight logistics facilitating transportation of
goods by road networks mainly in Europe, Middle East, the US and South
Africa. Road services are reported within the Road reporting segment.
Road services are characterised by short delivery times as most road
transports are completed within a few days.
Solutions services
Solutions services comprise contract logistics, incl. warehousing and in-
ventory management, across the globe. Solutions services are reported
within the Solutions re porting segment. Solutions services are charac-
terised by very short delivery times, happening almost instanta neously
as agreed actions under the customer contract are carried out.
General recognition principles
Revenue from services delivered are recognised based on the price
specified in the contract with the customer. Revenue is measured ex-
cluding VAT and other tax collected on behalf of third parties, and any
discounts are oset against the revenue. Incremental costs of obtaining
a contract with a customer are not recognised as an asset but as an
expense when incurred due to the short delivery times.
Trade receivables are recognised as services delivered are invoiced to the
customer and are not adjusted for any financing components as credit
terms are short – typically between 14 and 60 days – and the financing
component therefore insignificant. Where services delivered have yet to
be invoiced and invoices on services received from hauliers have still to
be received, contract assets and accrued cost of services are recognised
at the reporting date.
Revenue allocated to remaining performance obligations are not dis-
closed following the practical expedient of IFRS 15.
Revenue also comprises income from sale of property projects in the
form of sale of land and buildings acquired, constructed and held for sale
in the ordinary course of business.
Revenue from property projects is recognised at a point in time in the
reporting segment to which it relates when control of and legal title to
the property has been transferred to the customer. Revenue is recog-
nised based on the price specified in the contract with the customer, and
the consideration is due upon transfer of the legal title. Delivery times on
property projects are typically 8-18 months.
If the property is leased back aer completion, the right-of-use asset
arising from the leaseback is recognised at the proportion of the previous
carrying amount of the asset that relates to the right of use retained by
DSV. As such, any gain or loss recognised only corresponds to rights
transferred to the buyer.
Sale of services and geographical segmentation specify as follows:
Services and geogra phical
segmentation
(DKKm)
EMEA Americas APAC Total
2021 2020 2021 2020 2021 2020 2021 2020
Air services 24,867 18,187 19,624 11,405 26,355 15,163 70,846 44,755
Sea services 32,053 14,607 18,317 8,874 10,685 5,453 61,055 28,934
Road services 32,452 28,076 2,964 2,319 - - 35,416 30,395
Solutions services 12,914 10,348 3,639 2,910 2,181 1,350 18,734 14,608
Total 102,286 71,218 44,544 25,508 39,221 21,966 186,051 118,692
Non-allocated items
and eliminations (3,745) (2,760)
Total revenue 182,306 115,932
55 DSV Annual Report 2021 Consolidated financial statements 2021
2.2 Revenue — continued 2.4 Other external expenses
2.6 Amortisation and depreciation
2.5 Sta costs
2.3 Direct costs
Accounting policies
Other external expenses include expenses relating to marketing, IT, other
rent, training and education, oce premises, travelling, communications
as well as other selling costs and administrative expenses, less costs
transferred to direct costs.
Sale of services includes revenue from freight forwarding services, con-
tract logistics, sale of property projects and other related services. Sale
of services recognised at a point in time constitutes less than 2% of total
revenue (2020: less than 2%). Other operating income includes rental
income from terminal and building leases, gains from disposal of non-
current assets and income from insurance contracts.
Revenue
Revenue is specified as follows:
Revenue (DKKm) 2021 2020
Sale of services 181,707 115,298
Other operating income 599 634
Total revenue 182,306 115,932
Accounting policies
Direct costs comprise costs paid to generate the revenue for the year.
Direct costs include settlement of accounts with haulage contractors,
shipping companies, airlines, etc. Direct costs also include sta costs
relating to hourly workers used for fulfilling orders and other direct costs
of operation, such as rental of logistics facilities and costs of property
projects.
Accounting policies
Sta costs include wages and salaries, pensions, social security costs and
other sta costs for salaried employees, but exclude sta costs for
hourly workers, which are recognised as direct costs.
Sta costs are recognised in the financial year in which the employee renders
the related service. Costs related to long-term employee benefits, e.g. share-
based payments, are recognised in the periods in which they are earned.
Reference is made to note 3.7 for detailed information on pension plans,
note 6.3 for detailed information on remuneration of Management and
note 6.2 for detailed information on the Group’s share options.
Accounting policies
Amortisation and depreciation for the year are recognised based on the amor-
tisation and depreciation profiles of the underlying assets (see notes 3.2 and 3.3).
Direct costs (DKKm) 20202021
Cost of carriers 133,631 78,473
Sta costs, hourly workers 6,280 5,274
Other costs of operation 4,780 3,651
Direct costs 144,691 87,398
Other external expenses (DKKm) 2021 2020
Other external expenses 8,953 6,942
Transferred to direct costs (4,780) (3,651)
Total other external expenses 4,173 3,291
Sta costs (DKKm) 2021 2020
Salaries and wages, etc. 16,250 14,137
Defined contribution pension plans 567 578
Defined benefit pension plans 74 27
Other social security costs 2,254 2,082
Share-based payments 160 134
Total sta costs 19,305 16,958
Recognised in the income statement items:
Hourly workers – recognised as direct costs 6,280 5,274
Salaried employees – recognised as sta costs 13,025 11,684
Total 19,305 16,958
Weighted average number of full-time employees 67,016 56,079
Number of full-time employees at year-end 77,958 56,621
Amortisation and depre ci ation (DKKm) 20202021
Customer relationships 212 208
Soware and other intangible assets 218 332
Buildings 231 154
Other operating equipment 388 355
ROU assets – Land and buildings 2,757 2,451
ROU assets – Other operating equipment 388 539
Total amortisation and depreciation 4,194 4,039
56 DSV Annual Report 2021 Consolidated financial statements 2021
2.7 Special items 2.8 Financial income and expenses
Accounting policies
Special items are used in connection with the presentation of profit or
loss for the year to distinguish consolidated operating profit from excep-
tional items, which by their nature are not related to the Group’s ordinary
operations or investment in future activities.
Special items comprise:
• Restructuring costs, impairment costs, etc., relating to fundamental
structural, procedural and managerial reorganisations as well as any
related gains or losses on disposals;
• Transaction and restructuring costs relating to the acqui sition and
divestment of enterprises.
Special items reconcile to the income statement items as specified
in the table below:
Accounting policies
Financial income and expenses include interest, share of associates’
profit/loss, foreign currency gains and losses and impairment of securi-
ties, payables and foreign currency transactions as well as amortisation
of financial assets and liabilities, including finance lease obligations. Fur-
thermore, realised and unrealised gains and losses on derivative financial
instruments that cannot be classified as hedging contracts are included.
Interest income includes interest on financial assets measured at amor-
tised cost of DKK 202 million (2020: DKK 248 million).
Interest expenses include interest on financial liabilities measured at
amortised cost of DKK 977 million (2020: DKK 912 million).
2021 2020
Special items Bridge
(DKKm)
Reported
income
statement
Special
items
Adjusted
income
statement
Reported
income
statement
Special
items
Adjusted
income
statement
Revenue 182,306 23 182,329 115,932 58 115,990
Direct costs 144,691 12 144,703 87,398 118 87,516
Gross profit 37,615 11 37,626 28,534 (60) 28,474
Other external expenses 4,173 184 4,357 3,291 386 3,677
Sta costs 13,025 277 13,302 11,684 1,363 13,047
Operating profit before amortisation and depreciation 20,417 (450) 19,967 13,559 (1,809) 11,750
Amortisation and depreciation 4,194 29 4,223 4,039 360 4,399
Operating profit 16,223 (479) 15,744 9,520 (2,169) 7,351
Special items, costs 478 (478) - 2,164 (2,164) -
Financial income 206 - 206 254 - 254
Financial expenses 1,047 (1) 1,046 1,983 (5) 1,978
Profit before tax 14,904 - 14,904 5,627 - 5,627
Management judgements and estimates
In the classification of special items, judgement is applied in ensuring that
only exceptional items not associated with the ordinary operations of the
Group are included.
Special items (DKKm) 2021 2020
Restructuring and integration costs 392 2,161
Transaction costs relating to acquisitions 86 3
Special items, costs 478 2,164
Financial income (DKKm) 2021 2020
Interest income 202 248
Share of associates’ profit, net of tax 4 6
Total financial income 206 254
Financial expenses (DKKm) 2021 2020
Interest expenses on lease liabilities 495 434
Other interest expenses 482 478
Calculated interest on pension
obligations, see note 3.7 17 16
Currency translation 53 1,055
Total financial expenses 1,047 1,983
57 DSV Annual Report 2021 Consolidated financial statements 2021
Chapter 3
Operating
assets and
liabilities
This chapter includes notes disclosures on
the Group’s invested capital that forms the
basis of our business activities. Invested
capital represents the Group’s property,
plant and equipment, 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 work-
ing capital to optimise the generation of
available free cash flow. Invested capital
also comprises significant intangible assets
mainly relating to acquired goodwill from
business combinations carried out over
the years.
Accounting policies
Goodwill
The carrying amount of goodwill is tested for impairment at least annu-
ally together with other non-current assets of the Group.
Impairment testing is performed for each cash-generating unit to which
consolidated goodwill is allocated, as defined by our divisional manage-
ment and operational structure. The cash-generating units thereby fol-
low our divisional structure: Air & Sea, Road and Solutions.
Goodwill is written down to its recoverable amount through the income
statement if lower than the carrying amount.
The recoverable amount is determined as the present value of the dis-
counted future net cash flow from the cash-generating unit to which the
goodwill relates. In calculating the present value, discount rates are ap-
plied reflecting the risk-free interest rate with the addition of risks relat-
ing to the individual cash-generating units, such as geographical and fi-
nancial exposure.
Other non-current intangible assets, property,
plant and equipment
The carrying amount of other non-current assets is tested for impair-
ment at least once a year in connection with the impairment test of
goodwill. If the tests show evidence of impairment, the asset is written
down to the recoverable amount through the income statement if lower
than the carrying amount. The recoverable amount is the higher of the
fair value of the asset less the expected costs to sell and its value in use.
The value in use is calculated as the present value of expected future
cash flows from the asset or the division of which the asset forms part.
3.1 Impairment testing
Management judgements and estimates
For goodwill impairment testing, a number of estimates are made on the
development in revenues, gross profits, operating margins, future capital
expenditures, discount rates and growth expectations in the terminal pe-
riod. These are based on an assessment of current and future develop-
ments in the three cash-generating units and on historical data and as-
sumptions of future expected market developments, including expected
long-term average market growth rates.
Material value drivers aecting the future net cash flows of the three
cash-generating units are:
Air & Sea
The Air & Sea division operates globally, so developments in the global
economy and world trade therefore have a material impact on the divi-
sion’s future net cash flow. Developments in gross profit per shipment,
cost management initiatives and development in internal productivity
(number of shipments per employee) also aect the division’s cash flow.
Road
The Road division mainly operates on the EMEA and US markets, which
means that the division’s future net cash flow is aected by the growth
rate in these regions. Developments in gross profit per shipment, includ-
ing truck and terminal utilisation rates, cost management initiatives and
devel opment in internal productivity (number of shipments per em-
ployee) also aect the division’s cash flow.
Solutions
The Solutions division operates globally, so developments in the global
economy and world trade therefore have a material impact on the divi-
sion’s future net cash flow. Developments in warehouse lease costs and
costs of related services, utilisation of warehouse facilities, cost manage-
ment initiatives and development in internal productivity (number of or-
der lines per employee) also aect the division’s cash flows.
58 DSV Annual Report 2021 Consolidated financial statements 2021
3.1 Impairment testing — continued
The expected future net cash flow is based on budgets and business
plans approved by Management for the year 2022 and projections
for subsequent years up to and including 2026. From 2026 onwards,
DSV expects the growth rate to remain in line with the expected
long-term average growth rate for the industry.
Goodwill impairment test at 31 December 2021 (DKKm)
2021 2020
Air & Sea Road Solutions Air & Sea Road Solutions
Carrying amount of goodwill 57,893 7,901 9,269 36,883 6,006 4,587
Budget period
Annual revenue growth 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Operating margin 9.1% 5.6% 11.0% 9.5% 4.6% 7.9%
Terminal period
Growth 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%
Pre-tax discount rate 7.2% 6.0% 7.3% 7.2% 5.4% 6.5%
Sensitivity analysis
Growth in budget period – allowed decline (percentage points) 28.3% 40.0% 18.4% 29.6% 42.7% 26.7%
Discount rate – allowed increase (percentage points) 8.7% 13.2% 4.1% 7.4% 5.2% 6.7%
Impairment test
Goodwill was tested for impairment at 31 December 2021.
The tests did not result in any impairment of carrying amounts.
The assumptions used, including a sensitivity analysis, are stated in the fol-
lowing. The pre-tax discount rate is calculated in accordance with IAS 36.
The sensitivity analysis assesses the impact of changes in cash flows and
discount rates on the impairment test results. The analysis concluded
that even negative changes, which are unlikely to occur, will not result in
impairment of goodwill in any of the three cash-generating units.
Sensitivity analysis
The sensitivity analysis shows the lowest possible growth rate or highest
possible discount rate in percentage points by which the assumptions
used can change before goodwill becomes impaired.
Other non-current intangible assets, property, plant and equipment
Other non-current assets were also tested for impairment indications
together with goodwill at 31 December 2021. No indication of
impairment was identified in connection with these tests.
59 DSV Annual Report 2021 Consolidated financial statements 2021
3.2 Intangible assets
Accounting policies
Goodwill
Only goodwill arising from business combinations is recognised in the fi-
nancial statements. Goodwill is measured as the dierence between the
total of the fair value of the consideration transferred, the value of
non-controlling interests and any equity investments previously held in
the acquiree, compared to the fair value of identifiable net assets on the
date of acquisition.
Goodwill is not amortised, but is tested for impairment at least annually.
Customer relationships
On initial recognition, customer relationships identified from business
combinations are recognised in the balance sheet at fair value. Subse-
quently, customer relationships are measured at cost less accumulated
amortisation and impairment losses.
Customer relationships are amortised over a period of eight years using
the diminishing balance method.
2021 2020
Intangible assets (DKKm) Goodwill
Customer
relationships Soware
Soware in
progress Tot al Goodwill
Customer
relationships Soware
Soware in
progress Tot al
Cost at 1 January 47,476 2,032 1,265 206 50,979 50,250 2,059 2,316 230 54,855
Additions from business combinations/previous period adjustments 25,333 569 1 13 25,916 (35) - - - (35)
Additions for the year - - 56 247 303 - - 26 194 220
Disposals - (56) (246) (43) (345) - - (1,276) - (1,276)
Reclassifications - - 143 (143) - - - 215 (215) -
Currency translation 2,254 20 (7) - 2,267 (2,739) (27) (16) (3) (2,785)
Total cost at 31 December 75,063 2,565 1,212 280 79,120 47,476 2,032 1,265 206 50,979
Total amortisation and impairment at 1 January - 1,551 763 - 2,314 - 1,368 1,499 - 2,867
Amortisation and impairments for the year - 212 218 - 430 - 208 332 - 540
Disposals - (56) (241) - (297) - (1,056) - (1,056)
Reclassification - - 7 - 7 - - -
Currency translation - 12 (7) - 5 - (25) (12) - (37)
Total amortisation and impairment at 31 December - 1,719 740 - 2,459 - 1,551 763 - 2,314
Carrying amount at 31 December 75,063 846 472 280 76,661 47,476 481 502 206 48,665
Computer soware and soware in progress
Computer soware bought or developed for internal use is measured at
the lower of cost less accumulated amortisation and impairment losses
and the recoverable amount. Cost comprises payments for the soware
and other directly attributable expenses of preparing the soware for its
intended use.
Aer commissioning, soware is amortised on a straight-line basis over
its expected useful life. The amortisation period is 1-10 years.
60 DSV Annual Report 2021 Consolidated financial statements 2021
3.3 Property, plant and equipment
Accounting policies
Land and buildings and other plant and operating equipment are meas-
ured at cost less accumulated depreciation and impairment losses.
The cost comprises the acquisition price and other directly attributable
expenses of preparing the asset for its intended use. The present value
of estimated expenses for dismantling and disposing of the asset as well
as restoration expenses are added to the cost if such expenses are rec-
ognised as a provision. Material borrowing costs directly attributable to
the construction of the individual asset are also added to cost.
If the individual components of an asset have dierent useful lives, each
component will be depreciated separately.
The cost of self-constructed assets comprises direct and indirect costs
for materials, components, subcontractors, wages and salaries. Costs for
self-constructed assets are recognised as property, plant and equipment
in progress on an ongoing basis until the assets are ready for use.
Subsequent costs, such as partial replacement of property, plant and
equipment, are included in the carrying amount of the asset in question
when it is probable that such costs will result in future economic benefits.
The carrying amount of the replaced parts is derecognised from the
balance sheet and recognised in the income statement.
2021 2020
Property, plant and equipment (DKKm)
Land and
buildings
Other plant
and operating
equipment
Property, plant
and equipment
in progress Tota l
Land and
buildings
Other plant
and operating
equipment
Property, plant
and equipment
in progress Tota l
Cost at 1 January 2,355 2,649 473 5,477 2,663 2,772 99 5,534
Additions from business combinations/previous period adjustments 2,229 295 30 2,554 11 - - 11
Additions for the year 241 762 177 1,180 276 403 442 1,121
Disposals (146) (348) (33) (527) (528) (388) (19) (935)
Transferred to assets held for sale 2 - (2) - - - - -
Reclassification 64 356 (375) 45 59 (22) (37) -
Currency translation 162 124 12 298 (126) (116) (12) (254)
Total cost at 31 December 4,907 3,838 282 9,027 2,355 2,649 473 5,477
Total depreciation and impairment at 1 January 967 1,496 - 2,463 972 1,540 - 2,512
Depreciation for the year 231 388 - 619 154 355 - 509
Disposals (87) (289) - (376) (137) (317) - (454)
Transferred to assets held for sale - - - - - - - -
Reclassification 24 31 - 55 15 (15) - -
Currency translation (24) 28 - 4 (37) (67) - (104)
Total depreciation and impairment at 31 December 1,111 1,654 - 2,765 967 1,496 - 2,463
Carrying amount at 31 December 3,796 2,184 282 6,262 1,388 1,153 473 3,014
61 DSV Annual Report 2021 Consolidated financial statements 2021
3.3 Property, plant and equipment
— continued
3.4 Contract assets and accrued
costs of services
3.6 Leases
3.5 Inventories
Depreciation is carried out on a straight-line basis over the expected
useful lives of the assets. The expected useful lives on the overall asset
categories are as follows:
• Terminals and administration buildings: 40-60 years
• Other buildings and building elements: 10-25 years
• Technical plant and machinery: 6-10 years
• Other plant and operating equipment: 3-8 years
• Land is not depreciated
The basis of depreciation takes into account the residual value of assets
and is reduced by any impairment losses. The residual value is calculated
on the date of acquisition and reassessed once a year. Depreciation will
be halted if the residual value exceeds the carrying amount of the asset.
Assets are transferred to assets held for sale if it is highly probable that
their carrying amount will be recovered primarily through sale rather than
through continuing use.
Management judgements and estimates
Judgement is applied in determining the depreciation period and future
residual value of the assets recognised and is generally based on histori-
cal experience. Reassessment is done annually to ascertain that the de-
preciation basis applied is still representative and reflects the expected
life and future residual value of the assets.
Accounting policies
Contract assets and accrued costs of services include accrued revenue
and accrued costs from freight forwarding services, contract logistics
and other related services in progress at 31 December 2021.
Contract assets are recognised when a sales transaction fulfils the crite-
ria for revenue recognition, but no final invoice has yet been issued to the
customer for the services delivered.
Accrued costs of services are estimated and recognised when supplier
invoices relating to recognised revenue for the reporting period have yet
to be received.
Management judgements and estimates
At the close of accounting periods, significant estimates are applied in
assessing services in progress, including accrual of income and pertaining
direct costs. These estimates are based on experience and continuous
follow-up on services in progress relative to subsequent invoicing.
Accounting policies
Inventories are measured at the lower of cost and net realisable value.
The cost of inventories comprises all costs of purchase, processing and
other costs incurred in bringing the inventories to their present condition.
Write-downs of inventories to net realisable value are recognised as di-
rect costs in the income statement.
Accounting policies
Whether a contract contains a lease is assessed at contract inception.
For identified leases, a right-of-use asset and corresponding lease liabil-
ity are recognised on the lease commencement date.
Upon initial recognition, the right-of-use asset is measured at cost cor-
responding to the lease liability recognised, adjusted for any lease pre-
payments or directly related costs, including dismantling and restoration
costs. The lease liability is measured at the present value of lease pay-
ments of the leasing period discounted using the interest rate implicit in
the lease contract. In cases where the implicit interest rate cannot be
determined, an appropriate incremental DSV borrowing rate is used. In
determining the lease period extension, options are only included if it is
reasonably certain they will be utilised.
At subsequent measurement, the right-of-use asset is measured less
accumulated depreciation and impairment losses and adjusted for any
remeasurements of the lease liability.
Depreciation is carried out following the straight-line method over the lease
term or the useful life of the right-of-use asset, whichever is shortest.
Inventories mainly consist of land and buildings under construction held
for the purpose of sale in the ordinary course of business (property pro-
jects). In total, DKK 1,562 million relating to property projects was rec-
ognised as an expense in 2021 (2020: DKK 1,169 million).
Inventories (DKKm) 20202021
Stocks 119 57
Property projects under construction 165 1,369
Total 284 1,426
62 DSV Annual Report 2021 Consolidated financial statements 2021
The lease liability is measured at amortised cost using the eective inter-
est method and adjusted for any remeasurements or modifications made
to the contract.
Right-of-use assets and lease liabilities are not recognised for low value
lease assets or leases with a lease term of 12 months or less. These are
recognised as an expense on a straight-line basis over the term of the
lease. Any service elements separable from the lease contract are also
accounted for following the same principle.
Extension options are only included in the lease term if extension of the lease
is reasonably certain. The majority of extension and termination options held
are exercisable only by the Group and not by the respective lessor.
Management judgements and estimates
In accounting for lease contracts, various judgements are applied in de-
termining right-of-use assets and lease liabilities. Judgements include
assessment of lease periods, utilisation of extension options and applica-
ble discount rates.
The profit or loss and cash flow impact of leases recognised for the year
are specified below:
3.6 Leases — continued
2021 2020
Right-of-use assets (DKKm)
Land and
buildings
Other
plant and
operating
equipment Tota l
Land and
buildings
Other
plant and
operating
equipment Tota l
Carrying amount at 1 January 10,146 965 11,111 10,313 1,358 11,671
Additions from business combinations 2,367 8 2,375 51 - 51
Additions for the year 3,488 227 3,715 2,739 472 3,211
Disposals for the year (336) (224) (560) (121) (297) (418)
Depreciation for the year (2,757) (388) (3,145) (2,451) (539) (2,990)
Currency translation 213 - 213 (385) (29) (414)
Carrying amount at 31 December 13,121 588 13,709 10,146 965 11,111
Contractual maturity
of lease liabilities
(DKKm) 20202021
0-1 year 3,692 3,122
1-5 years 9,835 7,299
> 5 years 4,803 3,499
Total undiscounted lease
liabilities at 31 December 18,330 13,920
Current/non-current classification (discounted):
Current 3,440 2,850
Non-current 11,848 9,428
Lease eects recognised in profit
or loss and cash flow
(DKKm) 20202021
Profit or loss:
Interest expenses on lease liabilities 495 434
Expenses relating to short-term leases 457 334
Expenses relating to leases of low-value assets 308 135
Expenses relating to variable lease payments not
included in the measurement of lease liabilities 103 81
Gains from sale and leaseback transactions 56 56
Cash flow:
Total cash outflow for leases 3,655 3,492
Leases
Right-of-use assets classified as land and buildings mainly relate to leases
of warehouses, terminals and oce buildings, whereas assets recognised
as other plant and operating equipment mainly relate to leases of trailers,
trucks, company cars, forklis, IT hardware and other oce equipment.
Land and building leases normally have a lease term of up to ten years,
whereas leases of other plant and operating equipment normally have a
lease term of up to five years.
Land and buildings may include extension options with the intention of
securing flexibility in the lease – however, any leasing period beyond the
normal ten years expected at the initiation of the lease will normally be
reflected in the contractual lease term agreed.
Analysis of lease liabilities showing the remaining contractual maturities
is provided in the following table:
63 DSV Annual Report 2021 Consolidated financial statements 2021
3.7 Pension obligations
Accounting policies
Pension obligations relating to defined contribution plans, under which
the Group pays regular pension contributions to independent pension
funds, are recognised in the income statement for the period in which
they are earned. Contributions payable are recognised in the balance
sheet under other current liabilities.
In regards to defined benefit plans, an actuarial valuation of the present
value of future benefits payable under the plan is made once a year. The
present value is calculated based on various assumptions, including the
future development in wage/salary levels, interest rates, inflation and mor-
tality. The present value is only calculated for benefits to which the employ-
ees have become entitled during their employment with the Group. The
actuarial calculation of the present value less the fair value of assets under
the plan is recognised in the balance sheet under pension obligations. Pen-
sion costs for the year are recognised in the income statement based on
actuarial estimates and the financial outlook at the beginning of the year.
Dierences between the calculated development in pension plan assets
and liabilities and the realised values are recognised in other comprehen-
sive income as actuarial gains or losses.
Changes in benefits payable for employees’ past services to the com-
pany result in an adjustment of the actuarial calculation of the present
value, which is classified as past service costs. Past service costs are
charged to the income statement immediately if the employees have al-
ready earned the right to the adjusted benefits. Otherwise, they will be
recognised in the income statement over the period in which the em-
ployees earn the right to the adjusted benefits.
Management judgements and estimates
In determining pension obligations, management makes use of external
and independent actuaries as basis for the estimates applied in measuring
the obligations. The actuarial assumptions used in the valuations vary from
country to country owing to national, economic and social conditions.
Pension obligations
Of these obligations, DKK 1,032 million relates to unfunded pension ob-
ligations (2020: DKK 863 million) and negative DKK 124 million relates
to partly funded obligations (2020: DKK 356 million). The latter is pri-
marily due to the Swiss plans being overfunded.
Total pension costs for the year
In 2021, net costs of DKK 658 million relating to the Group’s pension
plans were recognised in the income statement (2020: DKK 621 million)
and break down as follows:
Defined benefit pension obligations
Development in the present value of defined benefit pension obligations
break down as follows:
The expected average duration of the obligations is 14 years.
Pension obligations (DKKm) 2021 2020
Present value of defined benefit plans 5,693 4,218
Fair value of pension plan assets 4,785 2,999
Pension obligations, net 908 1,219
Pension cost 2021 (DKKm)
Defined
contribution
plans
Defined
benefit
plans Tota l
Sta costs 567 74 641
Financial expenses - 17 17
Total costs recognised 567 91 658
Pension cost 2020 (DKKm)
Defined
contribution
plans
Defined
benefit
plans Tota l
Sta costs 578 27 605
Financial expenses - 16 16
Total costs recognised 578 43 621
Defined benefit pension
obligations
(DKKm) 20202021
Obligations at 1 January 4,218 4,878
Current service cost 100 131
Past service cost from plan amendments,
curtailments and gains/losses on settlements (26) (104)
Calculated interest on obligations 56 43
Actuarial gains/losses arising from changes
in financial assumptions (186) 22
Actuarial gains/losses arising from changes in
demographic assumptions (63) 21
Actuarial gains/losses arising from experience
adjustments (8) (9)
Payments from the plan (1,211) (552)
Additions from business combinations 2,667 -
Currency translation 146 (212)
Obligations at 31 December 5,693 4,218
Expected maturity of pension
obligations
(DKKm) 20202021
0-1 year 206 208
1-5 years 747 589
> 5 years 4,740 3,421
Total obligations recognised 5,693 4,218
64 DSV Annual Report 2021 Consolidated financial statements 2021
3.7 Pension obligations — continued
Pension plan assets
Development in the fair value of pension plan assets breaks down as follows:
Actuarial gains included in statement of comprehensive amounts to
DKK 555 million.
DSV expects to contribute DKK 55 million to defined benefit plan assets
in 2022 (2021: DKK 55 million). The composition of the pension plan
assets is as follows:
Sensitivity analysis
The following table illustrates the change in the gross obligation relating
to defined benefit plans from a change in the key actuarial assumptions.
The analysis is based on fairly probable changes, provided that the other
parameters remain unchanged.
Significant pension plans
The most significant defined benefit plans of the Group relate to Ger-
many, Sweden and Switzerland constituting in total 81% (2020: 67%)
of the total net obligation of DKK 908 million (2020: DKK 1,219 million).
No other countries have individual defined benefit plans of significance.
The plan in Sweden is a final pay scheme, which covers all salaried em-
ployees born in or before 1978 and is based on a collective labour
agreement. Salaried employees born in or aer 1979 are covered
by a defined contribution plan.
The plan in Germany covers both salaried and hourly workers. Under this
plan, employees earn a fixed amount for each year in service. The plan
has been closed for new employees since 1994. We continuously work
to change our defined benefit plans in DSV into defined contribution plans
for the benefit of the Group and the employees.
Composition of pension plan assets (%) 20202021
Shares 52% 50%
Bonds 37% 37%
Insurance contracts 11% 13%
Total 100% 100%
Sensitivity analysis (DKKm) 20202021
Defined benefit pension obligation 5,693 4,218
Discount rate
Increase of 0.5 percentage point 5,293 3,891
Decrease of 0.5 percentage point 6,126 4,570
Future wage/salary increase
Increase of 0.5 percentage point 5,744 4,282
Decrease of 0.5 percentage point 5,595 4,129
Inflation
Increase of 0.5 percentage point 5,900 4,396
Decrease of 0.5 percentage point 5,479 4,026
Life expectancy
Life expectancy increase of 1 year 5,810 4,296
Life expectancy decrease of 1 year 5,507 4,100
Key assumptions on the most significant pension plans are as follows:
Key assumptions 2021 Discount rate
Future
wage/salary
increase
Future rate
of inflation
Sweden 1.5% 2.0% 1.5%
Germany 1.0% 2.0% 1.5%
Other 0.3-6.1% 0-10.0% 0-2.1%
Weighted average 1.5% 2.8% 1.2%
Mortality prognosis table
Sweden DUS14 (w-c)
Germany RT Heubeck 2018 G
Key assumption 2020 Discount rate
Future
wage/salary
increase
Future rate
of inflation
Sweden 1.9% 2.3% 1.8%
Germany 0.8% 2.0% 1.5%
Other 0.1-6.8% 0-10.0% 0-2.0%
Weighted average 1.6% 2.9% 1.0%
Mortality prognosis table
Sweden DUS14 (w-c)
Germany RT Heubeck 2018 G
Pension plan assets (DKKm) 2021 2020
Pension plan assets at 1 January 2,999 3,384
Calculated interest on plan assets 29 27
Return on plan assets excluding
calculated interest 298 52
Contributions to the plan 121 108
Payments from the plan (1,168) (527)
Additions from business combinations 2,312 -
Currency translation 194 (45)
Pension plan assets at 31 December 4,785 2,999
65 DSV Annual Report 2021 Consolidated financial statements 2021
3.8 Provisions
Accounting policies
Provisions are recognised when, due to an event occurring on or before
the reporting date, the Group has a legal or constructive obligation and it
is probable that the Group will have to give up future economic benefits
to meet the obligation.
Provisions are measured on the basis of Management’s best estimate of
the anticipated expenditure for settle ment of the relevant obligation and
are discounted if deemed material.
Management judgements and estimates
Management continually assesses provisions, including contingencies and
the likely outcome of pending and potential legal proceedings. The out-
come of such proceedings depends on future events, which are, by
nature, uncertain.
When considering provisions involving significant estimates, opinions and
estimates by external legal experts as well as existing case law are applied
in assessing the probable outcome of material legal proceedings etc.
Provisions
Provisions have not been discounted as the eect thereof is immaterial.
Provisions are expected to be settled within two years in all material respects.
Restructuring costs
Restructuring costs relate mainly to the integration of acquirees and the
restructuring plans previously announced, which consist mainly of termi-
nation benefits and costs under terminated leases.
Provisions - 2021 (DKKm)
Restruc turing
costs
Disputes and
legal actions Other Tot a l
Provisions at 1 January 781 443 1,554 2,778
Additions for the year 203 383 675 1,261
Additions from business combinations 248 271 2,205 2,724
Used for the year (533) (132) (606) (1,271)
Reversal of provisions made in previous years (36) (40) (108) (184)
Currency translation 10 15 16 41
Provisions at 31 December 673 940 3,736 5,349
Current/non-current classification:
Non-current liabilities 214 444 2,850 3,508
Current liabilities 459 496 886 1,841
Provisions at 31 December 673 940 3,736 5,349
Disputes and legal actions
Provisions for disputes and legal actions relate mainly to probable lia-
bilities taken over at the acquisition of enterprises.
Other provisions
Other provisions relate mainly to restoration obligations in connection
with property leases and onerous contracts relating to business combi-
nations.
66 DSV Annual Report 2021 Consolidated financial statements 2021
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
2.0 x EBITDA before special items and the
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 ex-
ceeds the target, for investments and busi-
ness combinations, and for share buybacks or
distribution to the Company’s shareholders.
Accounting policies
Share capital
At year-end, the share capital of DSV A/S amounted to 240 million
shares with a nominal value of DKK 1 each. In 2021, the share capital
was increased by 16 million shares and used as consideration for acquiring
Agility's Global Integrated Logistics business. For additional information on
the acquisition, please refer to note 6.1. Additionally, 6 million shares were
cancelled. Shares consist of only one share class and include no special
rights, preferences or restrictions. All shares are fully paid up.
Reserves specification – 2021
(DKKm)
Treasury share
reserve
Hedging
reserve
Translation
reserve
Total
reserves
Reserves at 1 January (4) (11) (2,821) (2.836)
Other comprehensive income, net of tax - 2 2,480 2,482
Total comprehensive income for the year - 2 2,480 2,482
Transactions with owners:
Purchase of treasury shares (13) - - (13)
Sale of treasury shares 2 - - 2
Capital reduction 6 - - 6
Transfer of treasury shares as business combination consideration 3 - - 3
Reserves at 31 December (6) (9) (341) (356)
Reserves specification – 2020
(DKKm)
Treasury share
reserve
Hedging
reserve
Translation
reserve
Total
reserves
Reserves at 1 January (6) (24) (235) (265)
Other comprehensive income, net of tax - 13 (2,586) (2,573)
Total comprehensive income for the year - 13 (2,586) (2,573)
Transactions with owners:
Purchase of treasury shares (6) - - (6)
Sale of treasury shares 3 - - 3
Capital reduction 5 - - 5
Reserves at 31 December (4) (11) (2,821) (2,836)
4.1 Equity
67 DSV Annual Report 2021 Consolidated financial statements 2021
Reserves
Reserves as presented in the statement of changes in equity comprise
treasury reserve, hedging reserve and translations reserve, as specified
on the previous page.
Treasury share reserve
The reserve comprises the nominal value of treasury shares. The dier-
ence between the market price paid and the nominal value plus dividends
on treasury shares is recognised directly as retained earnings in equity.
Treasury shares are bought back to meet obligations under the Company’s
incentive schemes and to adapt the capital structure.
The reserve is a distributable reserve.
Hedging reserve
The hedging reserve comprises the fair value of hedging instruments
qualifying for hedge accounting.
Hedge accounting ceases when the hedging instrument matures or if
a hedge is no longer eective.
Translation reserve
The reserve comprises foreign currency translation arising on the trans-
lation of net investments and related hedging in entities with a functional
currency other than DKK.
The reserve is dissolved upon disposal of entities.
4.1 Equity — continued 4.2 Capital structure and capital allocation
2021 2020
Treasury shares
Market value
(DKKm)
% of share capital
at 31 December
Nominal value
(DKKm)
Market value
(DKKm)
% of share capital
at 31 December
Nominal value
(DKKm)
Portfolio, beginning of year 3,972 1.7% 3.9 4,247 2.7% 6.1
New shares issued 24,495 6.7% 16.0 - - -
Cancellation of treasury shares (5,863) (2.5%) (6.0) (3,317) (2.2%) (5.0)
Purchased during the year 17,841 5.5% 13.3 5,031 2.7% 6.2
Consideration for acquisition (29,571) (8.0%) (19.3) - - -
Sold during the year (784) (0.9%) (2.1) (1,370) (1.5%) (3.4)
Value adjustment (1,169) - - (619) - -
Portfolio, end of year 8,921 2.4% 5.8 3,972 1.7% 3.9
Capital structure
The capital structure of DSV is intended to maintain financial stability,
optimise cost of capital and to ensure financial readiness allowing to act on
business opportunities as they present themselves. The gearing ratio was
1.4 at 31 December 2021 (2020: 1.3). The target gearing ratio is below
2.0 x EBITDA, but may exceed this level following significant acquisitions.
Capital allocation
The Group aims to spend its free cash flow in the following order of priority:
1. Repayment of net interest-bearing debt in periods when the financial
gearing ratio is above target;
2. Value-adding investments in the form of acquisitions or development
of the existing business;
3. Distribution to the Company’s shareholders by means of share
buybacks and dividends.
Net interest-bearing debt
The Group increased its net interest-bearing debt in 2021 by DKK
11,056 million (2020: reduced by DKK 166 million). Net interest-
bearing debt can be specified as follows:
Net interest-bearing debt (DKKm) 2021 2020
Lease liabilities 15,288 12,278
Interest-bearing borrowings 21,472 8,881
Pensions and similar obligations 908 1,219
Other receivables (124) (129)
Cash and cash equivalents (8,299) (4,060)
Net interest-bearing debt 29,245 18,189
Value-adding investments
The Group had a positive cash flow on acquisitions of DKK 1,631 million
in 2021, primarily relating to the acquisition of GIL, as a result of taking
over a positive net cash position.
68 DSV Annual Report 2021 Consolidated financial statements 2021
Accounting policies
The financial liabilities of the Group are divided into four financing cate-
gories: bank loans and credit facilities, issued bonds, lease liabilities and
other financial liabilities.
Bank loans and other borrowings and loans obtained through the issuance
of bonds are initially recognised at fair value net of transaction expenses.
Subsequently, the financial liability is measured at amortised cost, corre-
sponding to the capitalised value using the eective interest method,
4.2 Capital structure and capital
allocation — continued
4.3 Financial liabilities
so that the dierence between the proceeds and the nominal value is rec-
ognised in the income statement over the term of the loan. Lease liabili-
ties are described in further detail in note 3.6.
Other liabilities are measured at amortised cost, which, in all essentials,
corresponds to the net realisable value.
Financial liabilities (DKKm) 20202021
Non-current liabilities 28,841 17,124
Current liabilities 7,912 4,035
Total 36,753 21,159
Financing activities 2020 (DKKm)
Loans and credit facilities 2,867 (1,791) 10 3 - 1,089
Issued bonds 5,046 2,697 - (25) 12 7,730
Lease liabilities 12,612 (3,058) 51 (368) 3,041 12,278
Total liabilities from financing activities 20,525 (2,152) 61 (390) 3,053 21,097
Other non-current liabilities 71 62
Total financial liabilities 20,596 21,159
* Other includes additions and remeasurement of financial liabilities.
Non-cash change
Financing activities 2021 (DKKm)
Beginning
of year Cash flow
Additions from
business
combinations
Currency
eects Other* End of year
Loans and credit facilities 1,089 563 139 105 - 1,896
Issued bonds 7,730 11,782 - 48 (3) 19,557
Lease liabilities 12,278 (3,160) 2,539 246 3,385 15,288
Total liabilities from financing activities 21,097 9,185 2,678 399 3,382 36,741
Other non-current liabilities 62 12
Total financial liabilities 21,159 36,753
Distribution to the Company’s shareholders
In 2021, the Group spent DKK 17,841 million on purchase of treasury
shares and DKK 920 million on dividends distributed (2020: DKK 5,031
million and DKK 588 million, respectively). It is proposed to distribute a
dividend of DKK 5.50 per share for 2021 (2020: DKK 4.00).
Cash and capital restrictions
Cash and cash equivalents comprise cash on hand and short-term liquid
assets that are readily convertible to cash. Of total cash and cash
equivalents, DKK 839 million (2020: DKK 930 million) are subject
to restrictions implying that the cash may not be readily available for
general use or distribution by the Group. Major types of cash and capital
restrictions specify as follows:
Cash and capital restrictions (DKKm) 20202021
Exchange control restrictions 654 736
Insurance collaterals 178 187
Other collaterals 7 7
Total 839 930
Exchange control restrictions
Exchange control restrictions comprise cash balances in countries where
various forms of foreign exchange controls or other legal restrictions
apply. While the cash balances are available for the daily operations of
the local entities, the balances cannot be immediately repatriated to
the ultimate parent company in Denmark (DSV A/S).
Insurance collaterals
Insurance collaterals constitutes security for outstanding insurance
contracts sold to customers by DSV Insurance. The amount is regulated
and measured in accordance with laws and regulations issued by the
Danish Financial Supervisory Authority.
69 DSV Annual Report 2021 Consolidated financial statements 2021
Commitments and amounts drawn on long-term credit facilities at 31 December 2021:
The Group’s financial liabilities fall due as follows:
4.4 Financial risks
Liquidity risk
The cash readiness of the Group is ensured through short and long-term
credit facilities from the main banks of the Group and through the issu-
ance of bonds. The purpose of issuing bond loans is to diversify the Group’s
long-term debt, making the Group less dependent on bank loans.
The Group’s bank and bond loans are subject to standard clauses, accord-
ing to which the Group’s debt must be repaid in case of a change of con-
trol. The long-term credit facilities with banks are furthermore subject to
one covenant. The covenant relates to the gearing ratio of the Group
and is reported on every quarter. The covenant has not been breached
in 2021.
The total duration of the Group’s long-term loan commitments and the
amounts drawn on its credit lines at 31 December 2021 are shown in
the accompanying table. Furthermore, a maturity analysis has been pro-
vided based on contractual cash flows, including estimated interest pay-
ments. The amounts have not been discounted and as such do not rec-
oncile directly to the balance sheet.
Foreign currency risk
Due to its global activities, the Group is exposed to exchange rate fluc-
tuations to a certain extent. DSV seeks to eliminate foreign currency
risks by hedging currency exposures centrally via the Group’s Treasury
department. The risk exposure is managed on a net basis, primarily by
using foreign exchange forward contracts.
The Group’s foreign subsidiaries are not aected where trading income
and costs are denominated in the local functional currency. This applies
to a large part of the Group’s subsidiaries. Furthermore, a large propor-
tion of the income and expenses of the Group are denominated in EUR,
and the total foreign currency risk is therefore limited.
Loan facilities Amount (EURm) Amount (DKKm)
Expiry of
commitments Duration (years) Undrawn
Long-term loan I 200 1,487 31-01-2024 2.1 1,487
Long-term loan II 180 1,339 31-12-2023 2.0 1,339
Long-term loan III 100 744 31-01-2024 2.1 744
Long-term loan IV 100 744 28-02-2025 3.2 744
Long-term loan V 125 930 28-02-2024 2.2 930
Long-term loan VI 75 558 15-12-2023 2.0 558
Bond loan III 200 1,488 20-09-2024 2.7 -
Bond loan V 500 3,718 26-02-2027 5.2 -
Bond loan IV 500 3,718 03-03-2031 9.2 -
Bond loan IV 600 4,462 05-07-2033 11.5 -
Bond loan IV 500 3,718 17-09-2036 14.7 -
Total and weighted duration 3,080 22,906 9.6 5,802
Financial liabilities – maturity 2021
(DKKm) Carrying amount
Total cash flow,
inclu ding interest 0-1 year 1-5 years > 5 years
Loans and credit facilities 1,896 1,932 1,932 - -
Issued bonds 19,557 20,923 2,741 1,952 16,230
Lease liabilities 15,288 18,330 3,692 9,835 4,803
Trade payables 17,040 17,040 17,040 - -
Currency derivatives 33 33 33 - -
Interest rate derivatives 7 (9) (9) - -
Total 53,821 58,249 25,429 11,787 21,033
Financial liabilities – maturity 2020
(DKKm) Carrying amount
Total cash flow,
inclu ding interest 0-1 year 1-5 years > 5 years
Loans and credit facilities 1,089 1,096 1,096 - -
Issued bonds 7,730 7,985 89 4,160 3,736
Lease liabilities 12,278 13,920 3,122 7,299 3,499
Trade payables 9,926 9,926 9,926 - -
Interest rate derivatives 17 20 3 17 -
Total 31,040 32,947 14,236 11,476 7,235
70 DSV Annual Report 2021 Consolidated financial statements 2021
4.4 Financial risks — continued
The Group is also exposed to foreign currency risks, partly on the trans-
lation of debt denominated in foreign currency other than the functional
currency and partly on the translation of net investments in enterprises
with a functional currency other than DKK. The former risk aects profit
before tax. On recognition of net investments in foreign subsidiaries, the
Group is exposed to a translation risk when the profit or loss and equity
of foreign subsidiaries are translated into DKK at the reporting date
based on the average rates of exchange and the closing rates. The need
to hedge the Parent’s net investments in subsidiaries is assessed on a
regular basis. It is Group policy to reduce net investments in Group sub-
sidiaries on an ongoing basis by distributing the subsidiaries’ profits as
dividends.
The Group hedges booked external net currency positions and currencies
with larger expected short-term operational cash flows for up to six
months. At year-end 2021, 41% of expected six-month cash flows in
USD were hedged.
As hedge accounting is only applied to a limited extent, and we do not
hedge currency exposure related to intra-group balances with no under-
lying cash flow impact, significant changes in currency rates, especially
EUR/DKK, CNY/DKK and CHF/DKK, will result in more fluctuations in re-
ported financial items. Unhedged intra-group balances at 31 December
are highlighted in the main currency exposures table to the right.
In general, the Group does not hedge EUR positions as it expects that the
ocial Danish fixed exchange-rate policy against the EUR will continue.
The sensitivity analysis of foreign currency translation exposures shows
the eect of a 5% change in average exchange rates for the year on
profit/loss (EBIT) and the eect of a 5% change in year-end closing
rates on other comprehensive income. The calculation method applied in
the sensitivity analysis is unchanged compared to previous years.
Loan and credit facilities
(DKKm)
2021 2020
Carrying amount
Fixed/floating
interest rate Expiry Carrying amount
Fixed/floating
interest rate Expiry
Bank loans 818 Fixed 2022 444 Fixed/floating 2021
Bond loans 19,557 Fixed/floating 2022-2036 7,730 Fixed/floating 2022-2027
Overdra facility 1,078 Floating 2022 645 Floating 2021
Loans and credit facilities at
31 December 21,453 8,819
Current/non-current classification:
Non-current liabilities 16,981 7,730
Current liabilities 4,472 1,089
Unhedged intra-group balances Currency exposures – sensitivity analysis
Main currency exposures
(DKKm)
2021 2020 2021 2020
Net position
Impact on
profit/loss Net position
Impact on
profit/loss
Impact on
profit/loss
Impact
on OCI
Impact on
profit/loss
Impact
on OCI
EUR/DKK (12,154) (608) (3,378) (169) 191 238 104 229
CNY/DKK (3,143) (157) (1,167) (58) 84 54 68 44
CHF/DKK (1,771) (89) (5,478) (274) 14 38 9 310
GBP/DKK (1,085) (54) 213 11 41 34 28 24
PLN/DKK (543) (27) (234) (12) 22 24 12 16
USD/DKK (188) (9) 5,540 277 145 293 86 180
Total n.a. (944) n.a. (225) 497 681 307 803
71 DSV Annual Report 2021 Consolidated financial statements 2021
4.4 Financial risks — continued
Interest rate risk
The Group’s interest rate risk relates to the long-term floating-rate loans
raised by the Parent. These loans are partly converted to fixed rate loans
by using interest rate swaps with a duration of up to 120 months. The
Group’s loans and credit facilities break down as shown on the pre vious page.
At 31 December 2021, 92% (2020: 81%) of Group borrowings were
secured either through fixed-rate loans or other hedge transactions. The
duration of hedges relating to net borrowings of the Group was 151
months (2020: 88 months).
The weighted average interest rate on the Group’s loans, credit facilities
and interest rate hedging was 1.2% at the end of 2021 (2020: 1.3%).
A 1 percentage point increase in interest rates would increase profit for
the year by DKK 57 million (2020: DKK 9 million loss) and increase other
comprehensive income by DKK 5 million (2020: DKK 12 million), based
on average net interest-bearing debt for 2021. The calculation method
applied in the sensitivity analysis is unchanged compared to pre vious years.
Credit risk
The Group’s credit risk mainly relates to trade receivables.
The Group is not dependent on particular customer segments or any spe-
cific customers, and all customers are subjected to individual credit assess-
ments and credit limits in accordance with the Group’s Credit Policy. As a
result, the credit risk of the Group is generally considered insignificant.
The Group mainly hedges credit risks through the use of credit insurance.
For a limited number of customers, the Group uses non-recourse fac-
toring. At 31 December 2021, non-recourse factoring amounted to
DKK 1,696 million (2020: 1,407 million).
DSV is exposed to counterparty credit risk when entering into derivative
financial instruments. In order to reduce this risk, DSV only enters into de-
rivative financial instruments with the existing banks of the Group whose
credit ratings from Standard & Poor’s are long-term A or higher.
As a general rule, the Group only makes short-term deposits with banks
rated short-term A-2 or higher by Standard & Poor’s and/or P-2 or
higher by Moody’s.
Impairment of trade receivables
Impairment of trade receivables are assessed on an ongoing basis and
insurance policies taken out for the majority of these.
At 31 December 2021, credit insurances amounted to DKK 25,295
million, corresponding to 70% of total trade receivables (2020: DKK
15,163 million or 78%).
Loss allowances for impaired trade receivables are provided for following
an expected credit loss model. The model includes uninsured trade receiv-
ables and also factors in any own risk on insured receivables. Expected
credit loss at 31 December 2021 is presented in the following table:
Expected credit loss 2021
(DKKm)
Carrying
amount
Expected
loss rate (%)
Loss
allowance
Current 31,079 0.4% 117
Overdue 1-30 days 3,834 1.6% 62
Overdue 31-60 days 970 5.8% 56
Overdue 61-90 days 413 13.3% 55
Overdue 91-120 days 167 24.4% 41
Overdue >121 days 663 64.2% 426
Total 37,126 757
Expected credit loss 2020
(DKKm)
Carrying
amount
Expected
loss rate (%)
Loss
allowance
Current 15,901 0.3% 40
Overdue 1-30 days 2,204 2.0% 45
Overdue 31-60 days 530 7.1% 37
Overdue 61-90 days 230 15.2% 35
Overdue 91-120 days 137 21.9% 30
Overdue >121 days 459 51.4% 236
Total 19,461 423
Current receivables are considered to have high credit worthiness with
a low risk of loss.
The loss allowance provision for the year is specified below:
Loss allowance provision
(DKKm) 20202021
Provision at 1 January 423 510
Additions from business combinations 351 -
Additions for the year 337 251
Losses recognised (79) (94)
Reversal of provisions from
previous years (277) (211)
Currency translation 2 (33)
Provision at 31 December 757 423
Impairment losses on trade receivables for 2021 amounted to DKK 79
million, corresponding to 0.04% of consolidated revenue (2020: DKK 94
million, or 0.08%).
72 DSV Annual Report 2021 Consolidated financial statements 2021
4.5 Derivative financial instruments
Accounting policies
Derivative financial instruments are recognised on the trade date and are
measured at fair value. Positive and negative fair values are included in
other current re ceivables or other current payables in the balance sheet.
Positive and negative fair values are only oset if the Group has a right
and an intention to settle several financial instruments net (by means of
settlement of dierences). Fair value is determined based on generally
accepted valuation methods using available observable market data.
When entering into contracts for financial instruments, an assessment is
made of whether the instrument qualifies for hedge accounting, including
whether the instrument hedges recognised assets and liabilities or net
investments in foreign entities. The eectiveness of recognised financial
instruments is assessed on a monthly basis, and any in eectiveness is
recognised in the income statement.
Fair value changes which are classified as and fulfil the criteria for recog-
nition as a fair value hedge are recognised in the income statement to-
gether with changes in the value of the part of the asset or liability that
has been hedged.
Fair value changes in the part of the derivative which is classified as and
qualifies for recognition as a future cash flow hedge and which eectively
hedges against changes in the value of the hedged item are recognised in
other comprehensive income as a separate hedging reserve.
When the underlying hedged item is realised, any gain or loss on the
hedging transaction is transferred from equity and recognised together
with the hedged item.
Fair value changes that do not meet the criteria for treatment as hedging
instruments are recognised on an ongoing basis in the income statement
under financials.
External hedging
instruments
(DKKm)
2021 2020
Currency
instruments
Interest rate
instruments To tal
Currency
instruments
Interest rate
instruments To tal
Contractual value 11,801 744 12,545 6,447 744 7,191
Maturity (year) 2022 2022 2021 2021-2022
Fair value (33) (7) (40) 50 (17) 33
Of which recognised in
income statement (34) - (34) 51 - 51
Of which recognised in OCI 1 (7) (6) (1) (17) (18)
Foreign currency risk hedging
The Group mainly uses foreign exchange forward contracts to hedge
foreign currency risks. The main currencies hedged are CNY and USD.
The foreign exchange forward contracts are used as fair value hedges
of currency exposures relating to external balance sheet assets and
liabilities as well as expected short-term operational cash flows.
A loss on hedging instruments of DKK 84 million was recognised in the
income statement for 2021 (2020: a gain of DKK 76 million). In the
same period, a loss of DKK 28 million was recognised relating to assets
and liabilities (2020: a loss of DKK 1,131 million). The net loss in 2021
primarily relates to hedging instruments loss.
Interest rate risk hedging
The Group has obtained long-term loans on a floating rate basis, implying
that the Group is exposed to interest rate fluctuations.
The Group mainly uses interest rate swaps to hedge future cash flows
relating to interest rate risks. Thereby, floating-rate loans are converted
to fixed-rate financing.
The weighted average eective interest rate for existing interest rate in-
struments used as hedges of long-term loans was 0.8% at the reporting
date (2020: 0.8%).
73 DSV Annual Report 2021 Consolidated financial statements 2021
4.6 Earnings per share
Fair value hierarchy by category
DSV has no financial instruments measured at fair value
based on level 1 input (quoted active market prices) or level 3 input
(non-observable market data).
All financial instruments are measured based on level 2 input (input other
than quoted prices that are observable either directly or indirectly).
Derivative financial instruments
The fair value of currency and interest rate derivatives is determined
based on generally accepted valuation methods using available obser-
vable market data. Calculated fair values are verified against comparable
external market quotes on a monthly basis.
Financial liabilities measured at amortised cost
The carrying value of financial liabilities measured at amortised cost
is not considered to dier significantly from fair value.
Trade receivables, trade payables and other receivables
Receivables and payables pertaining to operating activities and with
short churn ratios are considered to have a carrying value equal to
fair value.
Earnings per share
(DKKm) 2021 2020
Profit for the year 11,254 4,258
Non-controlling interests’ share of
consolidated profit for the year 49 8
DSV A/S shareholders’
share of profit for the year 11,205 4,250
Amortisation of customer relationships 212 208
Share-based payment 160 134
Special items, costs 478 2,164
Related tax eect (208) (610)
Adjusted profit for the year 11,847 6,146
(‘000 shares)
Total average number of shares 231,732 231,462
Average number of treasury shares (4,231) (4,216)
Average number of shares in circulation 227,501 227,246
Average dilutive eect of outstanding share
options under incentive schemes 5,138 4,330
Diluted average number of shares
in circulation 232,639 231,576
Earnings per share of DKK 1 49.3 18.7
Diluted earnings per share of DKK 1 48.2 18.4
Adjusted earnings per share of DKK 1 52.1 27.0
Diluted adjusted earnings per share of DKK 1 50.9 26.5
Financial instruments by category
(DKKm)
2021
Carrying
amount
2020
Carrying
amount
Financial assets:
Currency derivatives - 50
Trade receivables 36,369 19,038
Other receivables 6,404 3,007
Cash and cash equivalents 8,299 4,060
Financial assets measured
at amortised cost 51,072 26,105
Financial liabilities:
Interest rate derivatives 7 17
Currency derivatives 33 -
Issued bonds measured at amortised cost 19,557 7,730
Loans and credit facilities 1,896 1,089
Lease liabilities 15,288 12,278
Trade payables 17,040 9,926
Financial liabilities measured
at amortised cost 53,781 31,023
Diluted average number of shares
Diluted earnings per share and diluted adjusted earnings per share have
been calculated excluding out-of-the money share options. The number
of out-of-the money share options was 0 in 2021 (2020: 0).
4.7 Financial instruments — fair value hierarchy
74 DSV Annual Report 2021 Consolidated financial statements 2021
Chapter 5
Tax
In 2021, we contributed with direct and
indirect taxes such as corporate taxes,
VAT, GST, duties etc. in more than 90
countries. Our corporate tax payments
amounted to DKK 2,263 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 in a responsible way.
Accounting policies
Current tax payable and receivable is recognised in the balance sheet
as tax calculated on the taxable income for the year adjusted for tax
on taxable income for previous years and for prepaid tax.
Tax for the year comprises current and deferred tax on profit or loss for
the year, interest expenses related to pending tax disputes and adjust-
ments to previous years, including adjustments due to tax rulings.
Tax for the year is recognised in the income statement, unless the tax
expense relates directly to items included in other comprehensive in-
come or equity.
Tax for the year (DKKm) 20202021
Tax for the year is disaggregated as follows:
Tax on profit for the year 3,650 1,369
Tax on other changes in equity (791) (383)
Tax on other comprehensive income 116 8
Total tax for the year 2,975 994
Tax on profit for the year is calculated as follows:
Current tax 3,830 1,905
Deferred tax (220) (621)
Tax adjustment relating to previous years 40 85
Total tax on profit for the year 3,650 1,369
Tax on other comprehensive
income specifies as follows:
Fair value adjustment of hedging instruments 3 (3)
Actuarial gains/(losses) (119) (5)
Total (116) (8)
5.1 Income tax
Tax rate (%) 20202021
Tax rate specifies as follows:
Calculated tax on profit for the year before tax 22.0% 22.0%
Adjustment of calculated tax in foreign
group enterprises relative to 22.0% 2.4% 3.3%
Change in deferred tax based on change
in income tax rate (0.1%) 0.0%
Tax eect of:
Non-deductible expenses/non-taxable income 0.7% (2.5%)
Non-deductible losses/non-taxable
gains on shares 0.0% 0.2%
Tax adjustment relating to previous years 0.3% 1.5%
Tax asset valuation adjustments, net (1.2%) (1.7%)
Other taxes and adjustments 0.4% 1.5%
Eective tax rate 24.5% 24.3%
75 DSV Annual Report 2021 Consolidated financial statements 2021
Accounting policies
Deferred tax is recognised based on temporary dierences between the
carrying amount and the tax value of assets and liabilities. No recognition
is made of deferred tax on temporary dierences relating to amortisation
or depreciation of goodwill, properties and other items if disallowed for
tax purposes, except at the acquisition of enterprises, if such temporary
dierences arose on the date of acquisition without aecting the results
or the taxable income. In cases where it is possible to calculate the tax
value according to dierent taxation rules, deferred tax is measured on
the basis of the planned use of the asset or the settlement of the liability.
Deferred tax assets, including the tax base of tax loss carryforwards, are
recognised as other non-current assets at the expected value of their
utilisation, either by elimination in tax on future earnings or by osetting
deferred tax liabilities within the same legal tax entity and jurisdiction.
Deferred tax assets and tax liabilities are oset if the enterprise has a
legally enforceable right to set o current tax liabilities and tax assets or
intends either to settle current tax liabilities and tax assets on a net basis
or to realise the assets and liabilities simultaneously.
Deferred tax is adjusted for elimination of unrealised intra-group gains
and losses. Deferred tax is measured on the basis of the tax rules and tax
rates of the relevant countries that will be eective under current legis-
lation at the reporting date on which the deferred tax is expected to
materialise as current tax.
Management judgements and estimates
Management applies significant estimates when recognising and
measuring deferred tax assets.
Deferred tax recognised
in the balance sheet
(DKKm) 20202021
Deferred tax at 1 January 2,293 1,709
Deferred tax for the year 220 621
Tax adjustment relating to previous years (337) (162)
Tax on changes in equity 675 383
Additions from business combinations 456 -
Other adjustments (210) (258)
Deferred tax at 31 December 3,097 2,293
Deferred tax not recog nised
in the balance sheet
(DKKm) 20202021
Temporary dierences (58) (27)
Tax loss carryforwards 1,220 982
Total tax assets not recognised 1,162 955
Of tax loss carryforwards, DKK 1,220 million may be carried forward
indefinitely.
Deferred tax assets, including the tax base of tax loss carryforwards
are recognised if it is assessed that there will be sucient future taxable
income against which the temporary dierences and unutilised tax losses
can be utilised. This assessment is based on budgets and business plans
for the following years, including planned business initiatives. Deferred
tax assets are tested annually and are only recognised if likely to
be utilised.
The resolution of disputes may take several years, and the outcome is
subject to considerable uncertainty.
5.2 Deferred tax
76 DSV Annual Report 2021 Consolidated financial statements 2021
5.2 Deferred tax — continued
The deferred tax assets and liabilities recognised are allocated to the following items:
Deferred tax allocation 2021 (DKKm) Intangible assets
PPE and
ROU assets Provisions Other liabilities
Tax base of
tax loss carry-
forwards Total
Deferred tax at 1 January (253) (1,778) 1,225 2,228 871 2,293
Recognised in profit/loss 105 (475) (1,325) 1,321 256 (118)
Recognised in equity - - 791 (116) - 675
Additions from business combinations 6 (135) 210 (21) 396 456
Other adjustments - - 1 - (162) (161)
Currency translation (1) 17 (13) (24) (27) (48)
Deferred tax at 31 December (143) (2,371) 889 3,388 1,334 3,097
Balance sheet classification:
Deferred tax assets (128) (1,615) 701 3,250 1,336 3,544
Deferred tax liabilities (15) (756) 188 138 (2) (447)
Deferred tax allocation 2020 (DKKm) Intangible assets
PPE and
ROU assets Provisions Other liabilities
Tax base of
tax loss carry-
forwards Total
Deferred tax at 1 January (364) (1,762) 988 1,989 858 1,709
Recognised in profit/loss 111 (61) (103) 310 202 459
Recognised in equity - - 380 3 - 383
Additions from business combinations - - - - - -
Other adjustments - (3) (2) - (131) (136)
Currency translation - 48 (38) (74) (58) (122)
Deferred tax at 31 December (253) (1,778) 1,225 2,228 871 2,293
Balance sheet classification:
Deferred tax assets (129) (1,576) 1,310 2,071 860 2,536
Deferred tax liabilities (124) (202) (85) 157 11 (243)
77 DSV Annual Report 2021 Consolidated financial statements 2021
Accounting policies
When accounting for business combinations, the acquisition method is
applied in accordance with IFRS 3.
Acquirees are recognised in the consolidated financial statements from
the date of acquisition. The date of acquisition is the date on which DSV
obtains control of the company. Entities disposed of are recognised in
the consolidated financial statements until the date of disposal. The date
of disposal is the date on which DSV surrenders control of the company.
The consideration transferred as payment for the acquiree consists of
the fair value of assets transferred, liabilities incurred to former owners
of the acquiree and equity instruments issued. Contingent considerations
dependent on future events or the performance of contractual obliga-
tions are also recognised at fair value and form part of the total consid-
eration transferred. Fair value changes in contingent considerations are
recognised in the income statement until final settlement.
Identifiable assets, liabilities and contingent liabilities of the acquiree are
measured at fair value at the date of acquisition by applying relevant val-
uation methods. Identifiable intangibles are recognised if they are sepa-
rable or arise from a contractual right. Deferred tax is recognised for
identifiable tax benefits existing at the date of acquisition and from the
perspective of the new combined Group in compliance with local tax
legislation.
The excess of the total consideration transferred, value of non-con-
trolling interests and the fair value of any equity investments previously
held in the acquiree over the total identifiable net assets measured at fair
value are recog nised as goodwill.
If measurement of the identifiable net assets is uncertain at the date of
acquisition, initial recognition is done based on provisional amounts.
Measurement period adjustments to the provisional amounts may be
done for up to 12 months following the date of acquisition.
The eects of cross-period measurement period adjustments are recog-
nised in equity at the beginning of the financial year, and comparative
figures are restated.
Aer the end of the measurement period, goodwill is no longer adjusted.
Transaction costs inherent from the acquisition are recognised in the in-
come statement when incurred.
Goodwill and fair value adjustments arising from the acquisition of an ac-
quiree whose functional currency diers from the presentation currency
of the Group are translated into the functional currency of the foreign
entity using the exchange rate ruling at the date of acquisition.
Other than cross-period measurement period adjustments, comparative
figures are not adjusted when acquiring or disposing of entities.
Management judgements and estimates
In applying the acquisition method of accounting, estimates are an integral
part of assessing fair values of several identifiable assets acquired and li-
abilities assumed, as observable market prices are typically not available.
Valuation techniques where estimates are applied typically relate to de-
termining the present value of future uncertain cash flows or assessing
other events in which the outcome is uncertain at the date of acquisition.
More significant estimates are typically applied in accounting for prop-
erty, plant and equipment, customer relationships, trade receivables,
debt and contingent liabilities. As a result of the uncertainties inherent in
fair value estimation, measurement period adjustments may be applied.
Acquisitions and disposals
On 16 August 2021, DSV acquired the Global Integrated Logistics busi-
ness (GIL) (from Agility Public Warehousing Company K.S.C.P.). No other
material enterprises, non-controlling interests or activities were acquired
6.1 Acquisition and disposal of entities 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 transactions with Group Manage-
ment, auditors and other related parties.
78 DSV Annual Report 2021 Consolidated financial statements 2021
6.1 Acquisition and disposal of entities — continued
the Solutions division. Finally, GIL adds road freight activities to DSV’s
network in Europe and the Middle East.
DSV and GIL are a strong match with many potential synergies as a result
of similarities in business models, services and strategies:
• Commercial synergies and cross-selling opportunities from stronger
network and service oerings, new competencies and skills
• Consolidation of operations, administration and logistics facilities
• Consolidation of IT infrastructure
• Strong focus on corporate responsibility and sustainability
The transaction is expected to be EPS accretive (diluted and adjusted)
in year 2 aer completion, and it is DSV’s aspiration to li the operating
margin of the combined entity to DSV's existing levels within the respec-
tive business areas.
Consideration transferred
The consideration transferred for Global Integrated Logistics has been made
in DSV equity instruments by oering in total 19,304,348 DSV shares at
a fair value of DKK 29,493 million based on the acquisition date closing
price of DKK 1,531 on Nasdaq Copenhagen oset by a cash consideration
transferred from Agility to DSV of approximately DKK 61 million. Adjusted
for the fair value of cash and cash equivalents acquired of DKK 1,759
million, the total net consideration amounted to DKK 27,734 million.
Transaction costs
Total transaction costs recognised until 31 December 2021 amount to
DKK 86 million (recognised as special items).
Earnings impact
As a consequence of the integration of Global Integrated Logistics into
DSV, the disclosed earnings impact is based on estimates as no financial
reporting capabilities are maintained that provide detailed consolidated
financial data on the separate pre-acquisition consolidation groups.
or divested in 2021. In 2020, no material enterprises, non-controlling
interests or activities were acquired or divested.
About GIL
The GIL business was a leading global transport and logistics provider
with a strong footprint in emerging markets. The business oered a mix
of integrated logistics services, including air, ocean and road freight for-
warding services, contract logistics and specialised logistics capabilities.
GIL operated a flexible, customer-centric and sustainability-driven busi-
ness with a global workforce of approximately 17,000 employees and
service provision across 100+ countries around the world (incl. agents).
GIL empowered businesses of all sizes, from small businesses to large
multinationals, through sector- specific expertise and digital tools and
technology to enhance supply chain eciency.
Strategic rationale and synergies
Acquisitions are an integral part of DSV's strategy, and DSV has a track
record of successful integrations. The combination with GIL is expected
to increase DSV's annual revenue by approximately 23%, thereby ranking
the combined company in the freight forwarding industry top three with
a combined workforce of more than 75,000 employees. The combined
company has own operations in more than 90 countries.
Scale remains one of the key competitive advantages in freight forward-
ing with significant operational and commercial benefits.
The Air & Sea division has been strengthened and will further cement its
position as one of the largest providers. GIL’s presence in the fast-grow-
ing emerging markets in APAC as well as Europe and Americas is a strong
addition to DSV’s existing network.
Contract logistics capabilities are increasingly important due to complex
supply chains and changing distribution channels. GIL brings additional
warehousing capacity of more than 1.4 million square metres, mainly in
APAC and the Middle East, and has thereby significantly strengthened
The acquisition is estimated to have contributed revenues of around DKK
15,000 million and operating profit before special items of DKK 950 mil-
lion to the DSV Group results for the period 16 August 2021 to 31 De-
cember 2021.
If the acquisition had occurred on 1 January 2021, consolidated pro-forma
revenue and operating profit before special items for the period ended 31
December 2021 of the combined Group would have been approximately
DKK 200,000 million and DKK 17,000 million, respectively.
Fair value of acquired net assets and recognised goodwill
Fair value of acquired net assets have been identified and goodwill rec-
ognised. Net assets, goodwill and contingent assets and liabilities recog-
nised at the reporting date are to some extent still provisional. Adjust-
ments may be applied to these amounts for a period of up to twelve
months from the acquisition date in accordance with IFRS 3.
The major categories of net assets for which acquisitional accounting
is still ongoing mainly relate to other provisions and deferred tax assets.
In addition, other minor adjustments may be applied to the various
net asset categories as full alignment to DSV accounting policies is
being finalised.
The fair value of acquired trade receivables, contract assets and other
receivables amounts to DKK 9,265 million. Collectability of receivables
has been assessed based on credit assessment policies; in this regard,
expected credit losses of DKK 340 million have been provided for.
The fair value of other receivables recognised includes indemnification as-
sets totalling DKK 1,818 million relating to various company- and value
added taxes. Indemnification assest have not been excluded from the con-
sideration transferred or opening balance recognition. Had the indemnifica-
tion assets been excluded, consideration transferred and net assets recog-
nised would have amounted to DKK 27,675 million and DKK 2,475 million
instead, whereas acquisitional goodwill would have remained unchanged.
79 DSV Annual Report 2021 Consolidated financial statements 2021
Contingent liabilities recognised are presented within the provisions line
item and further described in note 3.8. Goodwill recognised mainly re-
lates to the expertise and knowhow of the acquired workforce and ex-
pected synergies from the integration into the DSV Group. Recognised
goodwill is non-deductible for tax purposes. The fair value of identified
net assets and goodwill recognised is as specified to the le.
Fair value measurement
Material net assets acquired for which significant estimates have been
applied in the fair value assessment have been recognised using the
following valuation techniques:
Property, plant and equipment
Fair value of individual material property, plant and equipment assets
has been measured based on external market valuations carried out by
professional appraisers and assessments of prices on an active market.
Customer relationships
Customer relationships have been measured using a multi-period excess
earnings model (MPEE), by which the present value of future cash flows
from recurring contract customers expected to be retained aer the
date of acquisition has been valuated using a peer-group WACC of 7%
as discount rate. In total, customer relationships amounting to DKK
569 million have been included in the opening balance.
The main input value drivers in the MPEE model used are the estimated
future retention rate and net cash flow of the acquired contract cus-
tomer base. These inputs have been estimated based on Management’s
professional judgement from analysis of the acquired customer base,
historical data and general business insight.
Trade receivables and payables, contract assets and accrued
cost of services
Fair value of trade receivables and trade payables, contract assets and
accrued cost of services has been measured at the contractual amount
expected to be received or paid. In addition, collectability has been taken
into consideration on trade receivables. The amounts have not been
discounted, as maturity on trade receivables and payables generally is
very short and the discounted eect therefore immaterial.
Financial liabilities
Lease liabilities have been measured at the present value of the remaining
lease payments at the acquisition date discounted using an appropriate
incremental borrowing rate.
Other financial liabilities have been measured at the present value of the
repayable amounts discounted using a representative DSV borrowing
rate, unless the discount eect is insignificant. A DSV borrowing rate
has been applied as DSV vouches for the acquired debt, hence the credit
enhancement of the Group has been applied in the valuation.
Net assets and goodwill recognised
(DKKm)
Fair value at date
of acquisition
Customer relationships 569
Other intangible assets 13
Right-of-use assets 2,375
Property, plant and equipment 2,554
Trade receivables 5,452
Contract assets 1,448
Inventories 34
Deferred tax assets 641
Other receivables 2,365
Cash and cash equivalents 1,759
Total assets 17,210
Lease liabilities 2,331
Borrowings 139
Provisions 2,724
Pensions and similar obligations 355
Trade payables 2,487
Accrued cost of services 1,881
Deferred tax liabilities 206
Tax payables 601
Other payables 1,929
Total liabilities 12,653
NCI share of acquired net assets 264
Acquired net assets 4,293
Fair value of total consideration transferred 29,493
Goodwill arising from the acquisition 25,200
6.1 Acquisition and disposal of entities — continued
80 DSV Annual Report 2021 Consolidated financial statements 2021
6.2 Share option schemes
Accounting policies
DSV's share option schemes are equity-settled, measured at the grant
date and recognised in the income statement as sta costs over the
vesting period. The osetting item is recognised directly in equity.
The value of employee services received during the vesting period in
exchange for share options granted corresponds to the fair value of the
share options at the date of granting.
The fair value of the options granted is determined based on the Black
& Scholes valuation model. The assumptions used in the valuation takes
into account the terms and conditions applicable to the options granted
and Management’s expectations of the various parameters on which the
valuation model is based.
On initial recognition, an estimate is made of the number of share op-
tions that the employees are expected to earn. The estimated number of
share options is adjusted subsequently to reflect the actual number of
share options earned.
The estimated volatility is based on historical data over the preceding
three years adjusted for any unusual circumstances during the period.
The valuation of the share options granted in 2021 and 2020 is based
on the assumptions disclosed in the following table:
Assumptions 2021 2020
Share price 1,325.0 560.0
Volatility 18.0% 16.0%
Risk-free interest rate (0.1%) 0.0%
Expected dividends 0.8% 1.0%
Expected remaining life (years) 3.5 3.5
Current share option schemes
Scheme Options granted Exercise period Exercise price
Number of
employees
Market value at date
of granting (DKKm)
2017 2,723,500 01.04.2020 - 31.03.2022 357.0 1,574 101.8
2018 2,733,500 28.03.2021 - 28.03.2023 477.5 1,600 118.2
2019 2,735,000 29.03.2022 - 27.03.2024 545.0 1,624 141.7
2020 3,080,750 31.03.2023 - 31.03.2025 560.0 2,000 155.5
2021 2.438.300 01.04.2024 - 31.03.2026 1,325.0 2,202 205.3
Share option schemes at 31 December 2021
Scheme Executive Board
Key
employees Total
Average exercise
price per option
2017* - 326,500 326,500 357.0
2018* 190,000 1,051,073 1,241,073 477.5
2019 202,000 2,433,000 2,635,000 545.0
2020 202,000 2,761,750 2,963,750 560.0
2021 168,750 2,242,325 2,411,075 1,325.0
Outstanding at 31 December 2021 762,750 8,814,648 9,577,398 730.9
Open for exercise at 31 December 2021 190,000 1,377,573 1,566,073 452.4
Life (years) 2.7 2.9 2.9 n.a.
Market value (DKKm) 630.8 7,054.4 7,685.2 n.a.
* Share options granted in 2017 and 2018 are currently exercisable.
81 DSV Annual Report 2021 Consolidated financial statements 2021
6.2 Share option schemes — continued
Share option schemes
DSV has launched incentive share-based payment schemes with the
purpose of motivating and retaining key employees throughout the or-
ganisation. Share options are awarded at all levels in the organisation, e.g.
from team leads, specialists, branch managers, country managers, up to
Executive Management.
Retention is motivated by requiring continued service for a period cover-
ing the vesting period as a minimum. The schemes are also intended to
align the interests of employees and shareholders.
All active schemes entail a three-year vesting period and a two-year ex-
ercise period. In case of a change of control, all outstanding share options
will vest. Exercise prices are set based on the quoted market prices lead-
ing up to the date of granting. The share options can be exercised by
cash purchase of shares only. The obligation relating to the schemes is
partly covered by the Company’s treasury shares.
Share options are granted pursuant to the procedures laid down in the
Group’s Remuneration Policy applicable in the relevant year.
A total of 2,625 employees held share options at 31 December 2021
(2020: 2,378 employees).
Total costs recognised in 2021 for services received but not recognised
as an asset amounted to DKK 160 million (2020: DKK 134 million).
The average share price for options exercised in the financial year was DKK
1,324.5 per share at the date of exercise (2020: DKK 795.3 per share).
Outstanding share options
Executive
Board
Key
employees Total
Average exercise
price per option
Outstanding at 1 January 2020 760,000 8,228,700 8,988,700 438.2
Granted 190,000 2,890,750 3,080,750 560.0
Exercised (190,000) (2,326,071) (2,516,071) 325.0
Options waived/expired - (147,250) (147,250) 515.2
Outstanding at 31 December 2020 760,000 8,646,129 9,406,129 507.2
Outstanding at 1 January 2021 760,000 8,646,129 9,406,129 507.2
Granted 156,750 2,281,550 2,438,300 1,325.0
Transferred
1
36,000 (36,000) - -
Exercised (190,000) (1,953,556) (2,143,556) 427.9
Options waived/expired - (123,475) (123,475) 684.7
Outstanding at 31 December 2021 762,750 8,814,648 9,577,398 730.9
¹ A member of the Executive Board has previously received share options in the Director’s former capacity as DSV key employee.
82 DSV Annual Report 2021 Consolidated financial statements 2021
6.3 Remuneration of the Executive
Board and the Board of Directors
6.4 Fees to auditors appointed at
the Annual General Meeting
Board of Directors
The aggregate remuneration for the Board of Directors of DSV A/S for
2021 was DKK 7.2 million (2020: DKK 6.9 million).
Non-audit services provided by PwC Denmark amounted to DKK 8 million
in 2021 relating to cyber security advisory services, data AI solution ad-
visory services, valuation reports, various tax advisory services and other
advisory services. Non-audit services provided by PwC Denmark did not
exceed 70% of the audit fees in accordance with EU audit legislation.
* Includes fees to EY (the appointed auditor for GIL) amounting to DKK 4 million for
statutory audit fees and DKK 3 million for tax and VAT advisory services. The amounts are
pro-rate for the period aer closing of the acquisition of GIL.
* Michael Ebbe became a member of the Executive Board on 26 October 2021.
Board of Directors’ remuneration
(DKK ‘000) 20202021
Thomas Plenborg, Chairman 2,250 2,250
Jørgen Møller, Deputy Chairman 1,000 1,000
Annette Sadolin 1,000 1,000
Birgit W. Nørgaard 625 625
Marie-Louise Aamund 750 750
Beat Walti (elected in 2020) 625 584
Niels Smedegaard (elected in 2020) 750 565
Tarek Sultan Al-Essa (elected in 2021) 157 -
Robert S. Kledal (resigned in 2021) - 130
Total 7,157 6,904
Audit fees and services (DKKm) 2021 2020
Statutory audit fees 42 33
Assurance engagements other than audits 4 1
Tax and VAT advisory services 2 1
Other services 4 4
Total fees to auditors appointed
at the Annual General Meeting 52 39
Statutory audit fees 13 5
Tax and VAT advisory services 21 13
Other services 12 8
Total fees, other* 46 26
Total fees 98 65
Executive Board’s
remuneration
(DKKm)
2021
Jens Bjørn
Andersen
Jens H.
Lund
Michael
Ebbe* Tota l
Fixed salary 15.2 11.3 1.1 27.6
Pension 1.2 0.9 0.1 2.2
Share-based payment 6.7 4.9 0.1 11.7
Total 23.1 17.1 1.3 41.5
Executive Board’s
remuneration
(DKKm)
2020
Jens Bjørn
Andersen
Jens H.
Lund
Michael
Ebbe* Tota l
Fixed salary 15.2 11.3 - 26.5
Pension 1.2 0.9 - 2.1
Share-based payment 5.2 3.8 - 9.0
Total 21.6 16.0 - 37.6
Executive Board
The members of the Executive Board are subject to a notice period of
up to 24 months.
The aggregate remuneration for the members of the Executive Board for
2021 was DKK 41.5 million (2020: DKK 37.6 million). The remuneration
of the Executive Board breaks down as follows:
83 DSV Annual Report 2021 Consolidated financial statements 2021
The Group had the following balances with associates at 31 December:
Contingent liabilities
Accounting policies
Contingent liabilities comprise possible obligations which have not yet
been confirmed, are uncertain or cannot be measured reliably, but which,
if realised, may result in a drain on the Group’s resources. Obligations are
recognised in the financial statements only to the extent that the criteria
for recognising a provision is met.
Management judgements and estimates
Management applies judgements in assessing the existence of contin-
gent liabilities on an ongoing basis and in this regard considers if the
criteria for recognising a provision is met.
These judgements may involve advice from external experts, legal
advisors, etc.
Contingent liabilities
As an international transport service provider, the Group is regularly in-
volved in tax and VAT disputes, legal proceedings or inquiries from com-
petition authorities. Management believes that the cases currently iden-
tified will have no material impact on the financial position of the Group.
A detailed disclosure of individual contingent liabilities is considered
impracticable and has therefore not been included in the notes to the
financial statements.
Security for debt
Bank guarantees
As part of its ordinary operations, DSV has provided bank guarantees to
authorities, suppliers, etc.
Associated companies balances
(DKKm) 20202021
Receivables 26 29
Payables 1 2
The counterparties may claim appropriation of collateral if DSV fails to
pay any amount due.
At the reporting date, all liabilities relating to the bank guarantees pro-
vided were recognised in the balance sheet or described in note 3.6 as
operating lease obligations.
Pledges
At 31 December 2021, property, plant and equipment and other finan-
cial assets with a carrying value of DKK 140.9 million were pledged as
security (2020: DKK 9.8 million). The carrying amount of debt secured
by pledges amounted to DKK 64 million (2020: DKK 0 million).
Contracts
DSV has concluded IT service contracts. Costs related to these contracts
are recognised as the services are provided.
Associated companies transactions
(DKKm) 20202021
Sale of services 163 193
Purchase of services 18 19
DSV has no related parties with control of the Group and no related par-
ties with significant influence other than key management personnel –
mainly in the form of the Board of Directors and the Executive Board.
Related-party transactions
Board of Directors and Executive Board
No transactions with related parties were made in 2021 other than
ordinary remuneration, as described in notes 6.2 and 6.3.
Associated companies
DSV holds ownership interests in 12 associates (2020: seven associ-
ates). The Group’s share of associates’ profit for the year amounted to
DKK 4 million (2020: DKK 6 million).
The carrying amount of the investment was DKK 63 million at 31
December 2021 (2020: DKK 37 million).
The Group had the following transactions with associates:
6.6 Contingent liabilities and security for debt6.5 Related-party transactions
84 DSV Annual Report 2021 Consolidated financial statements 2021
Definition of
key figures
and ratios
Key figures and ratios are disclosed in accordance with ‘Recommendations
& Ratios’ published by the Danish Finance Society, except for financial ratios
marked with (*) as these are either derived or not included in the Recom-
mendations. Earnings per share and diluted earnings per share are disclosed in
accordance with IAS 33. Environmental, social and governmental key fig-
ures and ratios are defined in the DSV Sustainability Report 2021 to which
reference is made.
Net interest- =
bearing debt
Net working capital =
Invested capital =
Adjusted earnings =
Net financial expenses =
Special items =
Adjusted free =
cash flow
Gross margin =
Operating margin =
Conversion ratio =
Eective tax rate* =
Return on invested =
capital before tax
Return on equity =
Solvency ratio =
Gearing ratio* =
Earnings per share =
Diluted earnings =
per share
Diluted adjusted =
earnings per share
Number of shares =
Average number =
of shares
Average number =
of shares diluted
Interest-bearing debt less interest-bearing assets and
cash and cash equivalents
Receivables and other current operating assets less
trade payables and other payables and other current
operating liabilities
NWC + property, plant and equipment, right-of-use
(ROU) assets, intangible assets including goodwill and
customer relationships less long-term provisions
The DSV A/S shareholders’ share of profit for the re-
porting period adjusted for amortisation and impairment
of goodwill and customer relationships, costs related to
share-based payments and special items. The tax eect
of the adjustments has been taken into account
Financial income less financial expenses
Exceptional items of income or expense which by na-
ture are not related to the Group's ordinary operation
or investments in future activities. See note 2.7 for
additional details on items included
Free cash flow adjusted for net acquisition of subsidi-
aries and activities, lease liability repayments, special
items and normalisation of working capital in subsidi-
aries and activities acquired
Gross profit * 100
Revenue
Operating profit (EBIT) before special items * 100
Revenue
Operating profit (EBIT) before special items * 100
Gross profit
Tax on profit for the year * 100
Profit before tax
Operating profit (EBIT) before special items * 100
Average invested capital
Profit attributable to the shareholders
of DSV A/S * 100
Average equity excluding non-controlling interests
Equity excluding non-controlling interests * 100
Total assets
Net interest-bearing debt
Operating profit before amortisation,
depreciation (EBITDA) before special items
Profit attributable to the shareholders of DSV A/S
Average number of shares
Profit attributable to the shareholders of DSV A/S
Average number of shares diluted
Adjusted earnings
Average number of shares diluted
Total number of shares outstanding excluding treasury
shares at the reporting date
Average number of shares outstanding during the re-
porting period
Average number of shares outstanding during the re-
porting period including share options, but excluding
out-of-the-money options measured relative to the
average share price for the period
Key figures
Financial ratios Share ratios
85 DSV Annual Report 2021 Consolidated financial statements 2021
Group company
overview
The overview below is a list of companies in the DSV Group at
31 December 2021 showing the companies by segment and
not by legal structure.
Company Country
Ownership
share Activity
Parent
DSV A/S Denmark
Subsidiaries
Europe
DSV Air & Sea GmbH Austria 100.00%
Agility Logistics GmbH Austria 100.00%
DSV Road GmbH Austria 100.00%
DSV Transport Ltd. Belarus 100.00%
DSV Air & Sea NV Belgium 100.00%
Panalpina World Transport N.V. Belgium 100.00%
AD Handling NV Belgium 100.00%
Agility Logistics N.V. Belgium 100.00%
ABX Worldwide Holdings NV/SA Belgium 100.00%
Air & Sea Road Solutions GroupActivity:
DSV Road Holding NV Belgium 100.00%
DSV Air & Sea Belgium NV Belgium 100.00%
DSV Solutions N.V. Belgium 100.00%
DSV Logistics N.V. Belgium 100.00%
DSV Road N.V. Belgium 100.00%
MCI Brokers N.V. Belgium 99.90%
DSV Air & Sea EOOD Bulgaria 100.00%
DSV Road EOOD Bulgaria 100.00%
DSV Hrvatska d.o.o. Croatia 100.00%
Panalpina Business Services (Prague), s.r.o. Czech Republic 100.00%
DSV Air & Sea s.r.o. Czech Republic 100.00%
Panalpina Czech S.R.O. Czech Republic 100.00%
Agility Logistics s.r.o Czech Republic 100.00%
DSV Air & Sea Czech Republic s.r.o. Czech Republic 100.00%
DSV Solutions s.r.o. Czech Republic 100.00%
DSV Road a.s. Czech Republic 100.00%
DSV Insurance A/S Denmark 100.00%
DSV Group Services A/S Denmark 100.00%
DSV Shop Hub A/S Denmark 100.00%
DSV FS A/S Denmark 100.00%
Anpartsselskabet af 25. januar 2017 Denmark 100.00%
DSV Smarter Storage A/S Denmark 100.00%
DSV Real Estate Glostrup A/S Denmark 100.00%
DSV Air & Sea Holding A/S Denmark 100.00%
DSV Air & Sea A/S Denmark 100.00%
DSV Ocean Transport A/S Denmark 100.00%
PC KH ApS Denmark 100.00%
DSV Air & Sea Denmark ApS Denmark 100.00%
Agility A/S Denmark 100.00%
DSV Solutions Holding A/S Denmark 100.00%
DSV Solutions A/S Denmark 100.00%
DSV Real Estate Duisburg A/S Denmark 100.00%
DSV Prime Cargo A/S Denmark 100.00%
DSV Road Holding A/S Denmark 100.00%
DSV Road A/S Denmark 100.00%
DSV Real Estate Horsens A/S Denmark 100.00%
DSV Real Estate Hedeland II A/S Denmark 100.00%
DSV Real Estate Hedeland III A/S Denmark 100.00%
DSV Real Estate Hedeland IV A/S Denmark 100.00%
DSV Real Estate Hedeland 2 ApS Denmark 100.00%
DSV Real Estate Hedeland 3 ApS Denmark 100.00%
DSV Real Estate Hedeland 4 ApS Denmark 100.00%
DSV Road Services A/S Denmark 100.00%
DSV Estonia AS Estonia 100.00%
DSV Air & Sea Oy Finland 100.00%
DSV Air & Sea Nordic AB – filial Finland Finland 100.00%
Oy Agility Logistics AB Finland 100.00%
Panalpina CIS Helsinki OY Finland 100.00%
DSV Solutions Oy Finland 100.00%
DSV Road Oy Finland 100.00%
DSV Air & Sea SAS France 100.00%
Agility SAS France 100.00%
DSV International Air & Sea France France 100.00%
DSV Solutions SAS France 100.00%
Agility Europort SNC France 100.00%
DSV Road Holding S.A. France 100.00%
DSV Road SAS France 100.00%
ING REEIF WATTRELOS France 100.00%
LEP Holdings GmbH Germany 100.00%
DSV Group Services GmbH Germany 100.00%
Company Country
Ownership
share Activity
Europe (continued)
Company Country
Ownership
share Activity
Europe (continued)
86 DSV Annual Report 2021 Consolidated financial statements 2021
DSV Air & Sea Germany GmbH Germany 100.0%
Agility Logistics GmbH Germany 100.0%
Agility Projects GmbH Germany 100.0%
DSV Air & Sea Deutschland GmbH Germany 100.0%
DSV Real Estate Duisburg A/S
- German Branch Germany 100.0%
DSV Solutions Group GmbH Germany 100.0%
DSV Solutions GmbH Germany 100.0%
DSV Stuttgart GmbH & Co. KG Germany 100.0%
DSV Stuttgart Verwaltung GmbH Germany 100.0%
Administration & Accounting
Service GmbH Germany 100.0%
DSV Road GmbH Germany 100.0%
DSV HELLAS S.A. Greece 100.0%
UTi Networks Limited Guernsey 100.0%
DSV Air & Sea Hungary K. Hungary 100.0%
Agility Hungary LLC Hungary 100.0%
DSV Solutions Hungary K. Hungary 100.0%
DSV Hungaria K. Hungary 100.0%
DSV Air & Sea Limited Ireland 100.0%
Panalpina World Transport (Ireland) Ltd. Ireland 100.0%
Agility Logistics Ltd Ireland 100.0%
LEP Shannon Ltd. Ireland 100.0%
DSV Air & Sea (Ireland) Limited Ireland 100.0%
DSV Solutions Ltd. Ireland 100.0%
UTI Inventory Management
Solutions Limited Ireland 100.0%
DSV Road Limited Ireland 100.0%
DSV S.p.A. Italy 100.0%
Panalpina Trasporti Mondiali S.p.A. Italy 100.0%
Agility Logistics S.r.l. Italy 100.0%
DSV Real Estate S.p.A. Italy 89.3%
DSV Air & Sea Italy S.r.l. Italy 100.0%
DSV Solutions S.R.L. Italy 100.0%
DSV Real Estate Novara S.r.l. Italy 66.0%
DSV Road S.R.L. Italy 100.0%
UTi Italy SrL Italy 100.0%
UTi Kazakhstan LLP Kazakhstan 100.0%
Agility Logistics LLP Kazakhstan 100.0%
DSV Latvia SIA Latvia 100.0%
DSV Lithuania UAB Lithuania 100.0%
DSV Air & Sea S.A. Luxembourg 100.0%
XB Luxembourg Holdings 1 SA Luxembourg 100.0%
XB Luxembourg Holdings 2 SARL Luxembourg 100.0%
DSV Lead Logistics B.V. Netherlands 100.0%
Agility Logistics International BV Netherlands 100.0%
GeoLogistics European Holdings B.V. Netherlands 100.0%
Telmidas AMS B.V. Netherlands 100.0%
TransOceanic Holdings BV Netherlands 100.0%
DSV Panalpina Finance B.V. Netherlands 100.0%
African Investments BV Netherlands 100.0%
UTi (Netherlands) Holdings BV Netherlands 100.0%
DSV Air & Sea Nederland B.V. Netherlands 100.0%
DSV Shared Services B.V. Netherlands 100.0%
Agility Restart BV Netherlands 100.0%
Agility BV Netherlands 100.0%
Agility Project Logistics BV Netherlands 100.0%
Agility Logistics Solutions BV Netherlands 100.0%
DSV Solutions Holding B.V. Netherlands 100.0%
DSV Solutions Nederland B.V. Netherlands 100.0%
IMS Holdings BV Netherlands 100.0%
DSV Multi-Channel Fulfilment B.V. Netherlands 100.0%
DSV Solutions (Dordrecht) B.V. Netherlands 100.0%
DSV Solutions (Moerdijk) B.V. Netherlands 100.0%
DSV Real Estate Dallas Holding B.V. Netherlands 100.0%
DSV Real Estate Venlo 5 B.V. Netherlands 100.0%
DSV Real Estate Maastricht B.V. Netherlands 100.0%
DSV Real Estate Moerdijk B.V. Netherlands 100.0%
DSV Moerdijk Project B.V. Netherlands 100.0%
DSV Road Holding N.V. Netherlands 100.0%
DSV Road B.V. Netherlands 100.0%
DSV ROAD DOOEL Skopje North Macedonia 100.0%
DSV Air & Sea AS Norway 100.0%
Panalpina AS Norway 100.0%
Agility AS Norway 100.0%
DSV Solutions AS Norway 100.0%
DSV Road AS Norway 100.0%
DSV International Shared
Services Sp. z o.o. Poland 100.0%
DSV Real Estate Warsaw Sp. z o.o. Poland 100.0%
DSV Air & Sea Sp. z o.o. Poland 100.0%
Panalpina Polska Sp. z o.o. Poland 100.0%
Agility Logistics Spolka z.o.o Poland 100.0%
DSV Air & Sea Poland Sp. z o.o. Poland 100.0%
DSV Services Sp. z o.o. Poland 100.0%
DSV Road Sp. z o.o. Poland 100.0%
DSV Solutions Sp. z o.o. Poland 100.0%
DSV Group Services Unipessoal, Lda Portugal 100.0%
Agility Business Services Europe Ltda Portugal 100.0%
DSV Air & Sea Portugal, LDA Portugal 100.0%
DSV Solutions, Lda. Portugal 100.0%
DSV SGPS, Lda. Portugal 100.0%
Company Country
Ownership
share Activity
Europe (continued)
Company Country
Ownership
share Activity
Europe (continued)
Company Country
Ownership
share Activity
Europe (continued)
87 DSV Annual Report 2021 Consolidated financial statements 2021
Agility Transitarios, Lda Portugal 100.0%
DSV Transitarios, Lda. Portugal 100.0%
DSV Air & Sea SRL Romania 100.0%
Agility Logistics SRL Romania 100.0%
DSV Solutions S.R.L. Romania 100.0%
DSV Air & Sea JSC Russia 100.0%
DSV Sakhalin, OOO Russia 68.0%
Geologistics CJSC Russia 100.0%
Agility Logistics LLC Russia 100.0%
Agility Forwarding LLC Russia 100.0%
Agility Services LLC Russia 100.0%
DSV Solutions OOO Russia 100.0%
DSV Road OOO Russia 100.0%
OOO DSV Transport Russia 100.0%
DSV Road d.o.o. Serbia 100.0%
DSV Solutions Slovakia s. r. o. Slovakia 100.0%
DSV Air & Sea Slovakia s.r.o. Slovakia 100.0%
Agility Logistics s.r.o. Slovakia 100.0%
DSV Slovakia, s.r.o. Slovakia 100.0%
DSV Transport d.o.o. Slovenia 100.0%
Tacisa Transitaria S.L. Spain 100.0%
Agility Spain SA Spain 100.0%
DSV Air & Sea International, S.L.U. Spain 100.0%
DSV Solutions Spain S.A.U. Spain 100.0%
Servicios Logisticos Integrados SLI, S.A. Spain 100.0%
DSV Road Spain S.A.U. Spain 100.0%
DSV Holding Spain S.L. Spain 100.0%
DSV Air & Sea, S.A.U. Spain 100.0%
DSV Air & Sea AB Sweden 100.0%
DSV Air & Sea Nordic AB Sweden 100.0%
Agility AB Sweden 100.0%
DSV Solutions AB Sweden 100.0%
DSV Real Estate Rosersberg AB Sweden 100.0%
DSV Group AB Sweden 100.0%
DSV Road AB Sweden 100.0%
Göinge Frakt EK Sweden 100.0%
DSV Road Property Holding AB Sweden 100.0%
Agility Management AG Switzerland 100.0%
Panalpina Welttransport Holding AG Switzerland 100.0%
Panalpina Management AG Switzerland 100.0%
Panalpina International AG Switzerland 100.0%
Panalpina Global Employment Services AG Switzerland 100.0%
Panalpina Air & Ocean AG in liquidation Switzerland 100.0%
DSV Air & Sea AG Switzerland 100.0%
Agility Logistics AG Switzerland 100.0%
Agility Logistics CIS AG Switzerland 100.0%
Agility GIL Services AG Switzerland 100.0%
DSV Logistics S.A. Switzerland 100.0%
DSV Air & Sea A.S. Turkey 100.0%
Agility Lojistik Anonim Sirketi Turkey 100.0%
DSV International Hava
ve Deniz Taşimaciliği Ltd.Şirketi Turkey 100.0%
DSV Road & Solutions A.S. Turkey 100.0%
Panalpina World Transport Ltd. Ukraine 100.0%
DSV Logistics LLC Ukraine 100.0%
Agility Logistics LLC Ukraine 100.0%
Agility Logistics Holdings Ltd. United Kingdom 100.0%
DSV Air & Sea Limited United Kingdom 100.0%
UTi (UK) Holdings Ltd. United Kingdom 100.0%
UTi Worldwide (UK) Ltd. United Kingdom 100.0%
Panalpina World Transport Ltd. United Kingdom 100.0%
Agility Logistics Ltd. United Kingdom 100.0%
Agility Fairs and Events Logistics Ltd. United Kingdom 100.0%
Agility Pension Plan Trustees Ltd. United Kingdom 100.0%
Agility Management Ltd
- Europe Region Management HQ United Kingdom 100.0%
Agility Management Ltd - IT Bureau United Kingdom 100.0%
DSV Air & Sea 2018 (UK) Limited United Kingdom 100.0%
Agility Projects Logistics Limited United Kingdom 100.0%
Agility Logistics Solutions Ltd. United Kingdom 100.0%
Agility Management Ltd United Kingdom 100.0%
DSV Peterborough Real Estate Limited United Kingdom 100.0%
DSV Real Estate Thrapston Limited United Kingdom 100.0%
DSV Road Holding Ltd. United Kingdom 100.0%
DSV Commercials Ltd. United Kingdom 100.0%
DSV Road Ltd. United Kingdom 100.0%
Global Options Worldwide Express (Ltd) United Kingdom 100.0%
DSV Pension Trustees Ltd. United Kingdom 100.0%
DSV Solutions Ltd. United Kingdom 100.0%
DFDS Transport Ltd. United Kingdom 100.0%
DSV Real Estate Tamworth Ltd. United Kingdom 100.0%
North America
GeoLogistics Holdings (Bermuda) Limited Bermuda 100.0%
DSV Air & Sea Inc. Canada 100.0%
Agility Logistics, Ltd. Canada 100.0%
DSV Solutions Inc. Canada 100.0%
DSV Road, Inc. Canada 100.0%
DSV Air & Sea, S.A. de C.V. Mexico 100.0%
Panalpina Servicios S.A. de C.V. Mexico 100.0%
TransOceanic Shipping Co. S. de RL de C.V. Mexico 100.0%
DSV Solutions S.A. de C.V. Mexico 100.0%
Company Country
Ownership
share Activity
Europe (continued)
Company Country
Ownership
share Activity
Europe (continued)
Company Country
Ownership
share Activity
Europe (continued)
88 DSV Annual Report 2021 Consolidated financial statements 2021
DSV Road, S.A. de C.V. Mexico 100.0%
DSV 4PL Inc. United States 100.0%
Agility Holdings Inc. United States 100.0%
DSV Air & Sea Holding Inc. United States 100.0%
DSV Air & Sea Inc. United States 100.0%
Agility Fairs and Events Logistics LLC United States 100.0%
American Inland Transport, Inc. United States 100.0%
DSV Air & Sea International Holding Inc. United States 100.0%
Agility Logistics Corporation United States 100.0%
Agility Project Logistics, Inc. United States 100.0%
Seagull Marine, Inc. United States 100.0%
Agility Logistics Solutions, Inc. United States 100.0%
Agility Domestic Solutions LLC United States 51.0%
DSV Solutions, LLC United States 100.0%
DSV Inventory Management Solutions Inc. United States 100.0%
DSV Real Estate Dallas Inc. United States 100.0%
Market Industries LLC United States 100.0%
Sammons Transportation, Inc. United States 100.0%
DSV Road, Inc. United States 100.0%
South America
UTi Logistics Argentina S.A. Argentina 100.0%
Panalpina Transportes Mundiales S.A. Argentina 100.0%
DSV Solutions Brasil Serviços de
Logística Ltda. Brazil 100.0%
DSV Air & Sea Brasil Ltda. Brazil 100.0%
Agility do Brasil Logística Internacional S.A. Brazil 100.0%
TransOceanic Projects do Brasil
Servicos de Cargas Ltda. Brazil 100.0%
UTi Worldwide Inc. Brit. Virgin Islands 100.0%
Goddard Company Limited Brit. Virgin Islands 100.0%
UTi International Inc. Brit. Virgin Islands 100.0%
UTi Logistics (Proprietary) Limited Brit. Virgin Islands 100.0%
Thomas International Freight
Auditors Limited Brit. Virgin Islands 100.0%
UTi Kazakhstan Investments Ltd Brit. Virgin Islands 100.0%
Agility (Asia/Pacific) Limited Brit. Virgin Islands 100.0%
PWC Global Logistics Holdings Ltd Brit. Virgin Islands 100.0%
DSV Air & Sea (Latin America) Holding S.A. Chile 100.0%
DSV Air & Sea S.A. Chile 100.0%
Panalpina Chile Transportes Mundiales Ltda. Chile 100.0%
Agility Logistics Corp. Holding SpA Chile 100.0%
Agility Logistics Chile SA Chile 51.0%
DSV Air & Sea S.A.S. Colombia 100.0%
Agility Logistics Colombia S.A.S. Colombia 100.0%
DSV Solutions S.A.S. Colombia 100.0%
DSV Air & Sea S.A. Costa Rica 100.0%
Agility Logistics Holdings NV Curacao 100.0%
LEP International NV Curacao 100.0%
DSV AIR & SEA DOMINICANA, S.R.L.
Dominican
Republic 100.0%
DSV-AIR&SEA S.A. Ecuador 100.0%
DSV Air & Sea, S.A. de C.V. El Salvador 100.0%
DSV Air & Sea PA Inc. Panama 100.0%
Panalpina SEM, S.A. Panama 100.0%
Panalpina S.A. Panama 100.0%
Almacenadora Mercantil S.A. Panama 100.0%
DSV Air & Sea S.A. Peru 100.0%
Agility Logistics Peru S.A. Peru 100.0%
DSV Air & Sea (PR) Inc. Puerto Rico 100.0%
Arabella Shipping Ltd
Saint Vincent And
The Grenadines 100.0%
DSV Air & Sea Uruguay
- Servicios Logisticos SA Uruguay 100.0%
Panalpina Uruguay Transportes
Mundiales S.A. Uruguay 100.0%
Panalpina Zona Franca S.A. Uruguay 100.0%
TransOceanic Projects Venezuela SRL Venezuela 100.0%
Asia
DSV Air & Sea Ltd. Bangladesh 100.0%
Agility Ltd. Bangladesh 100.0%
UTI Pership (Pvt) Limited
- Bangladesh Branch (BDT) Bangladesh 100.0%
DSV Air & Sea (Cambodia) Co., Ltd. Cambodia 100.0%
Prime Cargo (Cambodia) Co., Ltd. Cambodia 100.0%
Agility Logistics Limited Cambodia 100.0%
DSV Air & Sea Co., Ltd. Cambodia 100.0%
UTi Worldwide Co. Ltd.
- Cambodia Branch (USD) Cambodia 100.0%
DSV Air & Sea Co., Ltd. China 100.0%
DSV Air & Sea Co., Ltd. (South East China) China 100.0%
Prime Cargo Shanghai Ltd. China 100.0%
DSV Air & Sea Co., Ltd. (China) China 100.0%
Baisui United Logistics (Shanghai) Co. Ltd. China 100.0%
Agility Logistics (Shanghai) Limited China 100.0%
Agility Fairs & Events Logistics
(Shanghai) Co. Ltd. China 100.0%
Qingdao Agility Consultancy
Services Limited China 100.0%
DSV Logistics Co., Ltd. China 100.0%
Panalpina World Transport (PRC) Ltd. China 100.0%
Company Country
Ownership
share Activity
South America (continued)
Company Country
Ownership
share Activity
North America (continued)
Company Country
Ownership
share Activity
South America (continued)
89 DSV Annual Report 2021 Consolidated financial statements 2021
Agility Warehouse (Shanghai) Co. Ltd. China 100.0%
DSV Air & Sea Ltd. Hong Kong 100.0%
Pantainer (H.K.) Ltd. Hong Kong 100.0%
Prime Cargo (H.K.) Ltd. Hong Kong 100.0%
Agility Logistics Limited Hong Kong 100.0%
Agility Logistics Limited
- Asia Pacific Regional Management Hong Kong 100.0%
Agility Fairs & Events Logistics Limited Hong Kong 100.0%
ECT Transport Limited Hong Kong 100.0%
LEP Int'l NV - Hong Kong Hong Kong 100.0%
DSV Solutions Limited Hong Kong 100.0%
DSV Air & Sea (HK) Ltd. Hong Kong 100.0%
Panalpina World Transport Ltd. Hong Kong 100.0%
Panalpina China Ltd. Hong Kong 100.0%
GIL Shared Services Private Limited India 100.0%
DSV Air & Sea Pvt. Ltd. India 100.0%
DSV Air & Sea International
Private Limited India 100.0%
Agility Logistics Private Limited India 100.0%
LEP Int'l NV - India India 100.0%
DSV Coload & Clearance Pvt. Ltd. India 100.0%
DSV Solutions Private Limited India 100.0%
PT. DSV Transport Indonesia Indonesia 92.7%
PT Agility Indonesia 100.0%
PT Agility International Indonesia 100.0%
PT Synergy Indonesia Indonesia 100.0%
PT Sarana Prima Optima Indonesia 100.0%
LEP Int'l NV - Indonesia Indonesia 100.0%
DSV Air & Sea Japan GK Japan 100.0%
Agility Ltd. Japan 100.0%
LEP Int'l NV - Japan Japan 100.0%
DSV Air & Sea Co., Ltd. Japan 100.0%
DSV Solutions Co., Ltd. Japan 100.0%
DSV Air & Sea Ltd. Korea 100.0%
Agility Ltd. Korea 100.0%
LEP Int'l NV - Korea Korea 100.0%
DSV Air & Sea International Ltd. Korea 100.0%
DSV Air and Sea Limited Macao 100.0%
DSV Air & Sea Sdn. Bhd. Malaysia 100.0%
Panalpina Customs Services (M) SDN BHD Malaysia 100.0%
Litvest Corporation Sdn Bhd Malaysia 100.0%
Agility Logistics Sdn Bhd Malaysia 100.0%
GOCT Logistics Sdn Bhd Malaysia 100.0%
DSV Shared Services Asia Sdn Bhd Malaysia 100.0%
Logik Pengurusan Sdn Bhd Malaysia 100.0%
LEP Int'l NV - Malaysia Malaysia 100.0%
DSV Logistics Sdn. Bhd. Malaysia 100.0%
DSV SOLUTIONS SDN. BHD. Malaysia 100.0%
Panalpina Transport (Malaysia) Sdn. Bhd. Malaysia 100.0%
UTi Inventory Management
Solutions Sdn Bhd Malaysia 100.0%
DSV Air & Sea (Myanmar) Limited Myanmar 100.0%
DSV Air & Sea Ltd. Myanmar 100.0%
DSV Air and Sea Pakistan
(SMC-Private) Limited Pakistan 100.0%
Agility Logistics (Private) Limited Pakistan 100.0%
Agility Limited
Papua New
Guinea 100.0%
Panalpina Global Business Services (GBS)
- Philippines Philippines 100.0%
DSV International Shared Services Inc. Philippines 100.0%
DSV Air & Sea Inc. Philippines 100.0%
Agility Holding Company, Inc. Philippines 100.0%
Agility Logistics Holding, Inc. Philippines 100.0%
Agility International Logistics, Inc. Philippines 100.0%
LEP Int'l NV - Philippines Philippines 100.0%
UTi (Global Logistics) Inc. Philippines 100.0%
DSV SHARED SERVICES MANILA (ROHQ) Philippines 100.0%
Panalpina World Transport (Philippines) Inc. Philippines 100.0%
Agility Solutions, Inc. Philippines 100.0%
Agility Logistics Distribution, Inc. Philippines 100.0%
DSV Lead Logistics Pte. Ltd. Singapore 100.0%
Agility Logistics Holdings Pte Ltd Singapore 100.0%
Agility Logistics Holdings (S) Pte. Ltd. Singapore 100.0%
DSV Air & Sea Pte. Ltd. Singapore 100.0%
Agility International Logistics Pte. Ltd. Singapore 100.0%
Agility Fairs & Events Logistics Pte. Ltd. Singapore 100.0%
Agility Fairs & Events Logistics Pte. Ltd.
- Fairs & Events Singapore 100.0%
Agility Shipping Pte. Ltd. Singapore 100.0%
Agility Project Logistics Pte. Ltd. Singapore 100.0%
Agility Logistics Solutions Pte Ltd Singapore 100.0%
China Baisui Logistics Pte Ltd Singapore 100.0%
Agility Logistics Services Pte Ltd Singapore 100.0%
ECT Transport Pte. Ltd. Singapore 100.0%
LEP Int'l NV - Singapore Singapore 100.0%
ABX LOGISTICS Singapore PTE LTD Singapore 100.0%
DSV Solutions Pte Ltd. Singapore 100.0%
DSV Air & Sea Singapore Pte. Ltd. Singapore 100.0%
Inventory Solutions (Singapore) Pte. Ltd Singapore 100.0%
UTi Pership (Pvt) Limited Sri Lanka 51.0%
DSV Pership (Private) Limited Sri Lanka 40.0%
DSV Air & Sea Co., Ltd. Taiwan 100.0%
Company Country
Ownership
share Activity
Asia (continued)
Company Country
Ownership
share Activity
Asia (continued)
Company Country
Ownership
share Activity
Asia (continued)
90 DSV Annual Report 2021 Consolidated financial statements 2021
Trans-Link Exhibition Services Co. Ltd. Taiwan 50.0%
Agility Limited Taiwan 100.0%
LEP Int'l NV - Taiwan Taiwan 100.0%
UTi Holding Co., Ltd. Taiwan 100.0%
DSV Air & Sea (Taiwan) Ltd. Taiwan 100.0%
DSV Solutions Co., Ltd. Taiwan 100.0%
Panalpina Asia-Pacific Services
(Thailand) Ltd. Thailand 100.0%
Supreme Eliga Co. Ltd. Thailand 100.0%
Agility Co. Ltd. Thailand 99.5%
LEP Int'l NV - Thailand Thailand 100.0%
DSV Solutions Ltd. Thailand 100.0%
DSV Holding (Thailand) Co., Ltd. Thailand 100.0%
Panalpina World Transport
(Thailand) Ltd. Thailand 100.0%
DSV Air & Sea Ltd. Thailand 100.0%
Panalpina World Transport
(Vietnam) Co. Ltd. Viet Nam 99.0%
DSV Solutions Co., Ltd Viet Nam 100.0%
Agility Logistics Vietnam Company Ltd Viet Nam 100.0%
Agility Ltd Viet Nam 71.0%
DSV Air & Sea Vietnam Limited Viet Nam 100.0%
Inventory Management Solutions
Vietnam Limited Viet Nam 100.0%
Middle East
Agility Logistics Limited Afghanistan 100.0%
Panalpina Central Asia EC
- Azerbaijan Branch Azerbaijan 100.0%
Panalpina Azerbaijan LLC Azerbaijan 100.0%
DSV W.L.L. Bahrain 100.0%
Panalpina Central Asia EC Bahrain 100.0%
Agility Bahrain B.S.C.C. Bahrain 100.0%
Panalpina Georgia LLC Georgia 100.0%
Al-Alb Co. for General
Transportation (PLLC) Iraq 100.0%
Agility Kurdistan Company for
Admin istration of Warehouses and
Facilitate Storage Process Limited Iraq 67.5%
The Warehousing Company for Shipping,
Discharging and Custom Clearance LLC Iraq 100.0%
Shebil Company For Goods & Petroleum
Products Transportation Ltd Iraq 100.0%
Panalpina Jebel Ali Ltd. - Erbil Branch Iraq 100.0%
DSV Air & Sea Ltd. Israel 100.0%
DSV Marine Insurance Agency Ltd. Israel 100.0%
Hermes Exhibition & Projects Limited Israel 100.0%
DSV - E-COMMERCE LTD. Israel 100.0%
DSV Solutions Ltd Israel 100.0%
U.T.I.-Inventory Management Solutions
Limited partnership Israel 100.0%
UTI IMS Ltd. Israel 100.0%
Global Options Worldwide Express (Ltd) Israel 90.0%
DSV Air & Sea Jordan Jordan 100.0%
Public warehousing Company -Jordan PSC Jordan 100.0%
Al-Mutakamelah Lekhadmat Al
-Takhlees Ltd / East Jordan for clearance Jordan 100.0%
Public Warehousing Company for
Storage and Distribution Services Jordan 100.0%
Public warehousing Company
-Jordan PSC - Aqaba Branch Jordan 100.0%
Agility GIL for Company Business
Management Co. W.L.L Kuwait 100.0%
Global Logistics for General Trading
and Contracting Co. WLL Kuwait 100.0%
DSV Air & Sea Co. W.L.L. Kuwait 49.0%
Agility Transport Co. W.L.L. Kuwait 100.0%
Muroona Logistics Solution Co. for
General Trading of Equipments, Supplier
for Construction and Real Estate WLL Kuwait 100.0%
Agility GIL for Warehousing and Third
Party inventory Management S.P.C Kuwait 100.0%
Agility Logistics Cargo Transport Co. WLL Kuwait 100.0%
Agility Freight Forwarding (Lebanon) SARL Lebanon 100.0%
PWC Trading and contracting
Lebanon SAL (Holding) Lebanon 100.0%
PWC Lebanon (Holding) SAL Lebanon 100.0%
Agility Logistics Lebanon SAL Lebanon 100.0%
PWC investments (Lebanon) SARL Lebanon 100.0%
DSV Air and Sea LLC Oman 70.0%
Global Logistics (Oman) LLC Oman 50.0%
Panalpina Qatar WLL Qatar 49.0%
DSV Panalpina Marine Shipping W.L.L. Qatar 100.0%
Panalpina World Transport
(Saudi Arabia) Ltd. Saudi Arabia 100.0%
Agility Company LLC Saudi Arabia 100.0%
GIL INTERNATIONAL
HOLDINGS I LIMITED
United Arab
Emirates 100.0%
GIL INTERNATIONAL
HOLDINGS II LIMITED
United Arab
Emirates 100.0%
GIL INTERNATIONAL
HOLDINGS III LIMITED
United Arab
Emirates 100.0%
DSV Air & Sea (LLC)
United Arab
Emirates 100.0%
DSV Solutions DWC-LLC
United Arab
Emirates 100.0%
Panalpina Jebel Ali Ltd.
United Arab
Emirates 100.0%
Company Country
Ownership
share Activity
Middle East (continued)
Company Country
Ownership
share Activity
Asia (continued)
Company Country
Ownership
share Activity
Middle East (continued)
91 DSV Annual Report 2021 Consolidated financial statements 2021
DSV Gulf Customs Broker LLC
United Arab
Emirates 49.0%
DSV Air and Sea DWC-LLC
United Arab
Emirates 100.0%
DSV Air and Sea Middle East DWC-LLC
United Arab
Emirates 100.0%
Agility (Abu Dhabi) PJSC
United Arab
Emirates 49.0%
Agility Logistics (L.L.C.)
United Arab
Emirates 100.0%
Agility Global Logistics FZE
- Control Tower - MEA Regional Oce
United Arab
Emirates 100.0%
Agility GIL Middle East
and Africa FZE
United Arab
Emirates 100.0%
Agility Logistics Transport
Shipping Services LLC
United Arab
Emirates 99.0%
Agility Sport & Recreational
Ticketing LLC
United Arab
Emirates 99.0%
Agility Global Logistics FZE
United Arab
Emirates 100.0%
Oceania
DSV Air & Sea Pty. Ltd. Australia 100.0%
DSV Solutions Pty. Ltd. Australia 100.0%
Agility Logistics Holdings Pty Ltd Australia 100.0%
Agility Logistics Pty Ltd Australia 100.0%
Blockpack Pty Ltd Australia 100.0%
Agility Fairs & Events Logistics Pty Ltd Australia 100.0%
Agility Project Logistics Pty Ltd Australia 100.0%
Agility Shipping Pty Ltd Australia 100.0%
DSV Air & Sea Limited New Zealand 100.0%
Agility Limited New Zealand 100.0%
Agility Maghreb Sarl Algeria 49.0%
Agility Logistics SARL Algeria 100.0%
Frans Maas Algerie S.a.r.l. Algeria 100.0%
Panalpina Transportes Mundiais
Navegãçao e Trânsitos S.A.R.L. Angola 49.0%
Global Integrated Logistics Lda Angola 70.0%
DSV Air & Sea (PTY) Limited Botswana 100.0%
Panalpina Transports Mondiaux
Cameroun S.A.R.L. Cameroon 90.0%
DSV-UTI Egypt Ltd. Egypt 100.0%
Panalpina World Transport Egypt LLC Egypt 100.0%
Agility Egypt for Shipping and Freight Egypt 100.0%
Agility Logistics Egypt SAE Egypt 100.0%
Global Options Worldwide
Express Investments (Pty) Ltd Eswatini 100.0%
Panalpina Transports
Mondiaux Gabon S.A. Gabon 89.8%
DSV Air & Sea Limited Ghana 100.0%
DSV Air & Sea Limited Kenya 100.0%
Panalpina Kenya Ltd. Kenya 100.0%
DSV Air & Sea Limited Malawi 100.0%
Globeflight Worldwide Express Pty Ltd Malawi 50.0%
GIL Africa Holdings Ltd Mauritius 100.0%
Panalpina Morocco S.A.R.L. Morocco 100.0%
Agility SARLAU Morocco 100.0%
DSV Transport Int'l S.A Morocco 100.0%
Terminal Handling Company Morocco 100.0%
DSV Air & Sea Limitada Mozambique 100.0%
Agility Logistics LDA Mozambique 100.0%
Agility Global Integrated Logistics Lda Mozambique 100.0%
Globeflight Worldwide Express (Pty) Ltd Namibia 100.0%
Saima Nigeria Ltd. Nigeria 40.0%
Nationwide Clearing & Forwarding Ltd. Nigeria 36.6%
DSV Freight International Limited Nigeria 100.0%
Agility Freight Forwarding and
Transport International Ltd Nigeria 70.0%
DSV Air & Sea Ltd. Rwanda 100.0%
DSV Air and Sea (Proprietary) Limited South Africa 100.0%
DSV South Africa (Pty) Ltd. South Africa 75.0%
DSV Shared Services (Pty) Ltd. South Africa 100.0%
UTi Logistics (Proprietary) Limited
- SC OCS Division South Africa 100.0%
DSV AFRICA HOLDING (Pty) Ltd. South Africa 100.0%
DSV Skyservices (Pty) Ltd South Africa 100.0%
Scorpion Share Block (Pty) Ltd. South Africa 100.0%
Marine Link (Pty) Ltd. South Africa 100.0%
DSV Real Estate Johannesburg (Pty) Ltd. South Africa 100.0%
Firefly Investments 337 Properties
Proprietary Limited South Africa 100.0%
Linkit lnvestments (Pty) Ltd. South Africa 80.0%
DSV Empowerment Trust South Africa 100.0%
Agility South Africa (Pty) Ltd South Africa 100.0%
DSV Healthcare (Pty) Ltd. South Africa 100.0%
DSV Solutions (Pty) Ltd. South Africa 100.0%
DSV Assembly Services (Pty) Ltd. South Africa 65.3%
DSV Mounties (Pty) Ltd. South Africa 100.0%
DSV Road (Pty) Ltd. South Africa 100.0%
Globeflight Worldwide Express
(SA) Pty Ltd South Africa 100.0%
Mercury Couriers (Pty) Ltd South Africa 100.0%
DSV Air & Sea Limited Tanzania 100.0%
Panalpina World Transport
Tanzania Limited Tanzania 100.0%
Company Country
Ownership
share Activity
Africa
Company Country
Ownership
share Activity
Middle East (continued)
Company Country
Ownership
share Activity
Africa (continued)
92 DSV Annual Report 2021 Consolidated financial statements 2021
Agility Logistics Limited Tanzania 100.0%
DSV Air & Sea Limited Uganda 100.0%
Panalpina Uganda Limited Uganda 100.0%
Agility Logistics Limited Uganda 100.0%
Swi Freight International (Zambia) Ltd. Zambia 100.0%
DSV Air & Sea Limited Zambia 100.0%
DSV Air & Sea (Private) Limited Zimbabwe 100.0%
Associates
Trans-Link Cambodia Ltd Cambodia 49.0%
GT Stevedores Oy Finland 25.5%
KM Logistik GmbH Germany 35.0%
IDS Logistik GmbH Germany 28.0%
Sama Al Imad General Transport LLC Iraq 30.0%
MGM Lines Srl Italy 30.0%
Tristar Transport (Private) Limited Pakistan 50.0%
Beavor Properties (Pty) Ltd. South Africa 25.0%
Agility Logistics (Private) Limited Sri Lanka 40.0%
ATS Air Transport Service AG Switzerland 48.0%
Polymer Logistics Investments LLC
United Arab
Emirates 36.5%
Key Logistics, Inc. United States 49.0%
Company Country
Ownership
share Activity
Africa (continued)
93 DSV Annual Report 2021 Consolidated financial statements 2021
Executive Board:
Board of Directors:
94 DSV Annual Report 2021 Statements
Independent
Auditor’s reports
Report on the audit of the Financial Statements
Our opinion
Basis for opinion
Key audit matters
95 DSV Annual Report 2021 Statements
Statement on Management’s Commentary
Management’s responsibilities for the Financial Statements
96 DSV Annual Report 2021 Statements
Auditor’s responsibilities for the audit
of the Financial Statements
Report on compliance with the ESEF Regulation
97 DSV Annual Report 2021 Statements
CVR no 3377 1231
98 DSV Annual Report 2021 Statements
Parent
Company
financial
statements
Financial statements
Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Statement of comprehensive income . . . . . . . . . . . . . . . . . 100
Cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Statement of changes in equity . . . . . . . . . . . . . . . . . . . . 103
Notes
Basis of preparation
1. Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . 104
2. Changes in accounting policies . . . . . . . . . . . . . . . . . . 104
3. Management judgements and estimates . . . . . . . . . . . . 104
4. New accounting regulations . . . . . . . . . . . . . . . . . . . 104
Income statement
5. Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
6. Fees to auditors appointed at the Annual General Meeting . . 104
7. Sta costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
8. Special items . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
9. Financial income . . . . . . . . . . . . . . . . . . . . . . . . . . 105
10. Financial expenses . . . . . . . . . . . . . . . . . . . . . . . . . 105
11. Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Table of contents
Balance sheet
12. Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . 105
13. Other plant and operating equipment . . . . . . . . . . . . . . 106
14. Current receivables from group entities and other receivables . 106
15. Equity reserves . . . . . . . . . . . . . . . . . . . . . . . . . . 106
16. Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 107
17. Payables to Group entities and other payables . . . . . . . . . 107
18. Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . 107
Supplementary information
19. Share option schemes . . . . . . . . . . . . . . . . . . . . . . . 108
20. Investments in Group entities . . . . . . . . . . . . . . . . . . 108
21. Derivative financial instruments . . . . . . . . . . . . . . . . . 109
22. Financial risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
23. Contingent liabilities and security for debt . . . . . . . . . . . 110
24. Related-party transactions . . . . . . . . . . . . . . . . . . . . 110
99 DSV Annual Report 2021 Parent Company financial statements 2021
Income statement Statement of comprehensive income
(DKKm) Note 2021 2020
Revenue 5 2,417 2,290
Gross profit 2,417 2,290
Other external expenses 6 1,138 964
Sta costs 7 1,095 995
Operating profit before amortisation and depreciation (EBITDA)
before special items 184 331
Amortisation and depreciation 268 395
Operating profit (EBIT) before special items (84) (64)
Special items, costs 8 251 235
Financial income 9 6,543 2,167
Financial expenses 10 212 865
Profit before tax 5,996 1,003
Tax on profit for the year 11 137 (97)
Profit for the year 5,859 1,100
Proposed distribution of profit:
Proposed dividend per share is DKK 5.50 (2020: DKK 4.00 per share) 1,320 920
Transferred to equity reserves 4,539 180
Total distribution 5,859 1,100
(DKKm) 2021 2020
Profit for the year 5,859 1,100
Items that may be reclassified to the income statement when certain conditions are met:
Fair value adjustments relating to hedging instruments - (1)
Fair value adjustments relating to hedging instruments transferred to financial expenses 14 21
Tax on items reclassified to the income statement (8) (1)
Other comprehensive income, net of tax 6 19
Total comprehensive income 5,865 1,119
100 DSV Annual Report 2021 Parent Company financial statements 2021
Cash flow statement
(DKKm) Note 2021 2020
Operating profit before amortisation and depreciation (EBITDA)
before special items 184 331
Adjustments:
Share-based payments - 23
Change in working capital etc. (583) (10,083)
Special items (185) (14)
Dividend received 5,746 1,630
Interest received 797 537
Interest paid, other (212) (228)
Income tax paid (477) (34)
Cash flow from operating activities 5,270 (7,838)
Purchase of intangible assets 12 (230) (172)
Purchase of other plant and operating equipment 13 (146) (65)
Acquisition and disposal of subsidiaries and activities 2,153 14,511
Cash flow from investing activities 1,777 14,274
Free cash flow 7,047 6,436
(DKKm) Note 2021 2020
Proceeds from borrowings 1,522 6,756
Repayment of borrowings (5,521) (6,666)
Repayment of lease liabilities - (18)
Change in long-term receivables and borrowings, net 15,069 (1,729)
Transactions with shareholders:
Dividends distributed (920) (588)
Dividends on treasury shares 28 23
Purchase of treasury shares (17,841) (5,031)
Sale of treasury shares 2,150 2,357
Cash flow from financing activities (5,513) (4,896)
Cash flow for the year 1,534 1,540
Cash and cash equivalents 1 January 6,160 4,622
Cash flow for the year 1,534 1,540
Currency translation 2 (2)
Cash and cash equivalents at 31 December 7,696 6,160
The cash flow statement cannot be directly derived from the balance sheet and income statement.
101 DSV Annual Report 2021 Parent Company financial statements 2021
Assets (DKKm) Note 2021 2020
Intangible assets 12 657 616
Right-of-use (ROU) assets - 1
Other plant and operating equipment 13 216 146
Investments in Group entities 20 54,087 26,914
Receivables from Group entities and other receivables 24,062 17,284
Deferred tax assets 18 20 -
Total non-current assets 79,042 44,961
Receivables from Group entities and other recievables 14 18,463 20,501
Tax receivables 216 -
Cash and cash equivalents 7,696 6,160
Total current assets 26,375 26,661
Total assets 105,417 71,622
Equity and liabilities (DKKm) Note 2021 2020
Share capital 240 230
Reserves and retained earnings 15 57,192 38,345
Total equity 57,432 38,575
Borrowings 16 27,176 6,674
Deferred tax liabilities 18 - 29
Total non-current liabilities 27,176 6,703
Lease liabilities 16 - 1
Borrowings 16 1,714 4,135
Tax payables - 75
Payables to Group entities and other payables 17 19,095 22,133
Total current liabilities 20,809 26,344
Total liabilities 47,985 33,047
Total equity and liabilities 105,417 71,622
Balance sheet
102 DSV Annual Report 2021 Parent Company financial statements 2021
Statement of changes in equity
2021 2020
(DKKm) Share capital Reserves* Retained earnings Total equity Share capital Reserves* Retained earnings Total equity
Equity at 1 January 230 425 37,920 38,575 235 552 39,868 40,655
Profit for the year - 59 5,800 5,859 - (148) 1,248 1,100
Other comprehensive income, net of tax - 6 - 6 - 19 - 19
Total comprehensive income for the year - 65 5,800 5,865 - (129) 1,248 1,119
Transactions with shareholders:
Share-based payments - - - - - - 23 23
Dividends distributed - - (920) (920) - - (588) (588)
Purchase of treasury shares - (13) (17,828) (17,841) - (6) (5,025) (5,031)
Sale of treasury shares - 2 2,166 2,168 - 3 2,354 2,357
Capital increase 16 - 24,479 24,495 - - - -
Capital reduction (6) 6 - - (5) 5 - -
Transfer of treasury shares as business combination consideration - 3 5,073 5,076 - - - -
Dividends on treasury shares - - 28 28 - - 23 23
Other adjustments - - (14) (14) - - 17 17
Total transactions with shareholders 10 (2) 12,984 12,992 (5) 2 (3,196) (3,199)
Equity at 31 December 240 488 56,704 57,432 230 425 37,920 38,575
* For a specification of reserves, please refer to note 15.
103 DSV Annual Report 2021 Parent Company financial statements 2021
1. Accounting policies
As the Parent Company of the DSV Group, the financial statements of
DSV A/S are separate financial statements disclosed as required by the
Danish Financial Statements Act. The separate financial statements have
been prepared in accordance with International Financial Reporting Stand-
ards (IFRS) as issued by the International Accounting Standards Board
(IASB) and in accordance with IFRS as adopted by the EU and further re-
quirements of the Danish Financial Statements Act. 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 income statement 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 indication
of impairment, investments are tested for impairment as described in the
accounting policies applied by the Group. If the cost exceeds the recover-
able amount, the investment is written down to this lower value.
Currency translation
Foreign currency adjustments of balances considered part of the total net
investment in enterprises which have a functional currency other than
Danish kroner (DKK) are recognised in the income statement of the
Parent Company under financials.
2. Changes in accounting policies
All amendments to the International Financial Reporting Standards (IFRS) ef-
fective for the financial year 2021 have been implemented as basis for pre-
paring the Parent Company financial statements and notes to the statements.
None of the implementations has had any material impact on the state-
ments or notes presented.
3. Management judgements and estimates
For the preparation of the Annual Report of DSV A/S, Management
makes various accounting judgements that aect the reported amounts
and disclosures in the statements and in the notes to the financial state-
ments. These judgements are based on professional judgement, historical
data and other factors available to Management. By their nature, judge-
ments include a degree of uncertainty and actual results may therefore
deviate from the judgements made at the reporting date. Judgements
are continuously evaluated, and the eect of any changes is recognised in
the relevant period. Accounting judgements considered significant in the
preparation and understanding of the financial statements of the Parent
Company include the following:
Investments in subsidiaries
Management assesses annually whether there is an indication of impair-
ment of investments in subsidiaries. If so, the investments will be tested
for impairment in the same way as Group goodwill, involving various esti-
mates on future cashflows, growth, discount rates, etc. On 31 December
2021, no impairment indicators were identified.
4. New accounting regulations
The IASB has issued a number of new standards and amendments not yet
in eect or adopted by the EU and therefore not relevant for the prepara-
tion of the 2021 Parent Company financial statements. These standards
and amendments are expected to be implemented when they take eect.
None of the new standards or amendments issued are currently expected
to have any significant impact on the Parent Company financial statements
when implemented.
5. Revenue
(DKKm) 2021 2020
Intra-group charges 2,417 2,290
Total revenue 2,417 2,290
(DKKm) 2021 2020
Statutory audit 9 5
Assurance engagements other than audits 2 -
Tax and VAT advisory services 1 1
Other services 4 4
Total fees 16 10
7. Sta costs
For information on remuneration of the Executive Board and the Board
of Directors, please see notes 6.2 and 6.3 to the consolidated financial
statements.
(DKKm) 2021 2020
Remuneration of the Board of Directors 7 6
Salaries etc. 332 202
Intra-group salary charges etc. 721 758
Defined contribution pension plans 35 29
Total sta costs 1,095 995
Average number of full-time employees 507 437
8. Special items
(DKKm) 2021 2020
Restructuring and integration costs 165 235
Transaction costs relating to acquisition
of Global Integrated Logistics 86 -
Total special items, costs 251 235
6. Fees to auditors appointed at the Annual General Meeting
104 DSV Annual Report 2021 Parent Company financial statements 2021
11. Income tax
Tax for the year is disaggregated as follows:
12. Intangible assets
Tax on profit for the year specifies as follows: Tax rate specifies as follows:
Interest income includes interest on financial assets measured at amor-
tised cost of DKK 154 million (2020: DKK 156 million).
10. Financial expenses
Interest expenses include interest on financial liabilities measured at
amortised cost of DKK 145 million (2020: DKK 209 million).
(DKKm) 2021 2020
Interest income 154 156
Interest income from Group entities 406 381
Currency translation, net 237 -
Dividends from subsidiaries 5,746 1,630
Total financial income 6,543 2,167
(DKKm) 2021 2020
Interest expenses 145 209
Interest expenses for Group entities 67 19
Currency translation, net - 637
Total financial expenses 212 865
(DKKm) 2021 2020
Tax on profit for the year 137 (97)
Tax on other comprehensive income 8 1
Total tax for the year 145 (96)
(DKKm) 2021 2020
Current tax 187 12
Deferred tax (78) (109)
Tax adjustment relating to previous years 28 -
Total tax on profit for the year 137 (97)
(DKKm) 2021 2020
Calculated tax on profit for the year before tax 22.0% 22.0%
Tax eect of:
Non-deductible expenses/non-taxable income (20.2%) (31.7%)
Tax adjustment relating to previous years 0.5% 0.0%
Eective tax rate 2.3% (9.7%)
2021 2020
(DKKm) Soware
Soware in
progress Tota l Soware
Soware in
progress Tota l
Cost at 1 January 1,004 166 1,170 2,048 209 2,257
Additions for the year - 230 230 - 172 172
Disposals (226) - (226) (1,259) - (1,259)
Reclassifications 130 (130) - 215 (215) -
Total cost at 31 December 908 266 1,174 1,004 166 1,170
Total amortisation and im pairment at 1 January 554 - 554 1,289 - 1,289
Amortisation and impairment for the year 140 - 140 232 - 232
Disposals (177) - (177) (967) - (967)
Total amortisation and im pairment at 31 December 517 - 517 554 - 554
Carrying amount at 31 December 391 266 657 450 166 616
9. Financial income
105 DSV Annual Report 2021 Parent Company financial statements 2021
13. Other plant and operating equipment 15. Equity reserves
Equity reserves are specified below.
For a description of equity reserves, please see note 4.1 to the consolidated financial statements.
14. Current receivables from Group entities
and other receivables
(DKKm) 2021 2020
Cost at 1 January 350 358
Additions for the year 146 65
Disposals (36) (73)
Total cost at 31 December 460 350
Total amortisation and impairment at 1 January 204 202
Amortisation and impairment for the year 76 75
Disposals (36) (73)
Total amortisation and
impairment at 31 December 244 204
Carrying amount at 31 December 216 146
(DKKm) 2021 2020
Receivables from Group entities 18,138 20,177
Other receivables etc. 325 324
Current receivables from Group entities
and other receivables at 31 December 18,463 20,501
2021
(DKKm)
Treasury share
reserve Hedging reserve
Development
cost reserve Total reserves
Reserves at 1 January (4) (10) 439 425
Profit for the year - - 59 59
Other comprehensive income, net of tax - 6 - 6
Total comprehensive income for the year - 6 59 65
Transactions with shareholders:
Purchase of treasury shares (13) - - (13)
Sale of treasury shares 2 - - 2
Capital reduction 6 - - 6
Transfer of treasury shares as business combination consideration 3 - - 3
Reserves at 31 December (6) (4) 498 488
2020
(DKKm)
Treasury share
reserve Hedging reserve
Development
cost reserve Total reserves
Reserves at 1 January (5) (30) 587 552
Profit for the year - - (148) (148)
Other comprehensive income, net of tax - 19 - 19
Total comprehensive income for the year (5) (11) 439 423
Transactions with shareholders:
Purchase of treasury shares (6) - - (6)
Sale of treasury shares 2 1 - 3
Capital reduction 5 - - 5
Reserves at 31 December (4) (10) 439 425
106 DSV Annual Report 2021 Parent Company financial statements 2021
16. Financial liabilities 17. Payables to Group entities and other payables
18. Deferred tax asset
Loans and credit facilities
Bank loans are subject to standard trade covenants. All financial ratio
covenants were observed during the year. The weighted average inter-
est rate was 0.7% (2020: 1.1%).
(DKKm) 2021 2020
Loans and credit facilities 22,036 4,045
Issued bonds 6,681 6,674
Lease liabilities - 1
Other financial liabilities 173 90
Total financial liabilities 28,890 10,810
Financial liabilities as recognised
in the balance sheet:
Non-current liabilities 27,176 6,674
Current liabilities 1,714 4,136
Financial liabilities at 31 December 28,890 10,810
Carrying amount
(DKKm) Expiry Fixed/floating 2021 2020
Bond loans 2022-2027 Fixed/floating 6,681 6,674
Lease liabilities 2021 Floating - 1
Loans and credit
facilities 2021-2023 Floating 22,036 4,045
Loans and credit facilities at 31 December 28,717 10,720
2021 2020
Non-cash change Non-cash change
Financing activities (DKKm)
Beginning
of year Cash flow
Acqui-
sition Other
End of
year
Beginning
of year Cash flow
Acqui-
sition Other
End of
year
Loans and credit facilities 4,045 17,807 - 184 22,036 6,671 (2,647) - 21 4,045
Issued bonds 6,674 7 - - 6,681 3,975 2,736 - (37) 6,674
Lease liabilities 1 (1) - - - 19 (17) - (1) 1
Total liabilities from
financing activities 10,720 17,813 - 184 28,717 10,665 72 - (17) 10,720
Other non-current liabilities 90 173 53 90
Total financial liabilities 10,810 28,890 10,718 10,810
(DKKm) 2021 2020
Payables to Group entities 18,364 21,552
Other payables 731 581
Payables to Group entities and
other payables at 31 December 19,095 22,133
(DKKm) 2021 2020
Deferred tax at 1 January (29) (128)
Deferred tax for the year 78 109
Tax adjustments relating to previous years (38) 2
Tax on changes in equity 9 (12)
Deferred tax at 31 December 20 (29)
Deferred tax as recognised in
the balance sheet:
Deferred tax liabilities - 29
Deferred tax assets 20 -
Deferred tax, net 20 (29)
Specification of deferred tax:
Intangible assets (86) (99)
Current assets (3) (11)
Other liabilities 109 81
Deferred tax at 31 December 20 (29)
107 DSV Annual Report 2021 Parent Company financial statements 2021
19. Share option schemes
DSV A/S has issued share options to key employees and members of the
Executive Board of the Company. Please see 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 2021. Total costs recognised in 2021 for services
received but not recognised as an asset amounted to DKK 27 million
(2020: DKK 23 million). The average share price for options exercised
in the financial year was DKK 841.9 per share at the date of exercise.
20. Investments in Group entities
DSV A/S owns the following subsidiaries, all of which are included in the
consolidated financial statements:
Owner ship
2021
Owner ship
2020
Registered
oce
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 0.5
Panalpina Welt-
transport AG 100% 100%
Basel,
Switzerland 16
Agility Logistics
International B.V. 100% n.a.
AN Oude Meer,
Netherlands 2,635
DSV Finance BV 100% n.a.
Venlo,
Netherlands 0
GIL International
Holdings I Ltd. 100% n.a.
Abu Dhabi,
UAE 2,925
Share option schemes at 31 December 2021
Scheme Exercise period
Executive
Board
Key
employees Tot a l
Average
exercise price
per option
2017* 01.04.2020 - 31.03.2022 - 13,000 13,000 357.0
2018 28.03.2021 - 28.03.2023 190,000 102,573 292,573 477.5
2019 29.03.2022 - 27.03.2024 202,000 261,000 463,000 545.0
2020 31.03.2023 - 31.03.2025 202,000 294,000 496,000 560.0
2021 01.04.2024 - 31.03.2026 168,750 249,575 418,325 1,325.0
Outstanding at 31 December 2021 762,750 920,148 1,682,898 972.4
Open for exercise at 31 December 2021 190,000 115,573 305,573 472.4
Life (years) 2.7 3.0 2.9 n.a.
Market value (DKKm) 630.8 720.6 1,351.4 n.a.
* Share options granted in 2017 and 2018 are currently exercisable.
Outstanding share options
Executive
Board
Key
employees Tot a l
Average
exercise price
per option
Outstanding at 1 January 2020 760,000 828,000 1,588,000 435.0
Granted 190,000 312,000 502,000 560.0
Exercised (190,000) (207,871) (397,871) 310.6
Options waived/expired - (6,000) (6,000) 513.7
Outstanding at 31 December 2020 760,000 926,129 1,686,129 501.3
Outstanding at 1 January 2021 760,000 926,129 1,686,129 501.3
Granted 156,750 263,850 420,600 1,325.0
Transferred
1
36,000 (36,000) - -
Exercised (190,000) (222,056) (412,056) 401.7
Options waived/expired - (11,775) (11,775) 703.3
Outstanding at 31 December 2021 762,750 920,148 1,682,898 972.4
1
A member of the Executive Board has previously received share options in the Director’s former capacity as DSV key employee.
108 DSV Annual Report 2021 Parent Company financial statements 2021
21. Derivative financial instruments
The weighted average eective interest rate for existing interest rate
instruments was 0.8% at the reporting date (2020: 0.8%).
For 2021 a loss on hedging instruments of DKK 51 million was recog-
nised in the income statement (2020: gain of DKK 57 million).
In the same period, a loss of DKK 5 million was recognised relating to
assets and liabilities (2020: loss of DKK 694 million).
For more information on foreign currency and interest rate risk hedging,
please see notes 4.4 and 4.5 to the consolidated financial statements.
22. Financial risks
Financial risks of the Parent Company are handled within the risk man-
agement processes and framework of the Group. Please see 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, in-
cluding estimated interest payments. No amounts have been discounted,
for which reason they cannot necessarily be reconciled to the related
items of the balance sheet.
2021
External hedging instruments
(DKKm) Contractual value Maturity Fair value
Of which recog-
nised in income
statement
Of which
recognised
in OCI
Currency instruments 26,137 2022 (26) (27) 1
Interest rate instruments 744 2022 (7) - (7)
Total 26,881 (33) (27) (6)
2020
(DKKm) Contractual value Maturity Fair value
Of which recog-
nised in income
statement
Of which
recognised
in OCI
Currency instruments 6,353 2021 26 - (2)
Interest rate instruments 744 2021-2022 (17) - (17)
Total 7,097 9 - (19)
2021 2020
Loan and credit facilities
(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 11,805 1,952 16,230 29,987 5,922 3,123 3,736 12,781
Lease liabilities - - - - 1 - - 1
Other payables 736 - - 736 581 - - 581
Payables to Group entities 18,359 - - 18,359 21,552 - - 21,552
Currency derivatives 26 - - 26 (26) - - (26)
Interest rate derivatives 3 6 - 9 3 17 - 20
Total 30,929 1,958 16,230 49,117 28,033 3,140 3,736 34,909
109 DSV Annual Report 2021 Parent Company financial statements 2021
22. Financial risks – continued
Financial instruments by category
The fair value of financial assets and liabilities does not dier significantly
from the carrying amount.
The valuation of financial instruments measured at fair value is based
on other observable input than prices quoted in active markets (level 2).
Interest rate swaps and foreign exchange forward contracts are valued
using generally accepted valuation techniques based on relevant ob-
servable data.
Carrying amount
(DKKm) 2021 2020
Financial assets:
Currency derivatives 13 49
Receivables 18,463 20,501
Other receivables 24,062 17,284
Cash and cash equivalents 7,696 6,160
Total cash and receivables 50,221 43,945
Financial liabilities:
Interest rate derivatives 9 19
Currency derivatives 39 23
Issued bonds measured at amortised cost 6,681 6,674
Loans and credit facilities 22,036 4,045
Lease liabilities - 1
Payables to Group entities etc. 19,095 22,133
Financial liabilities measured
at amortised cost 47,812 32,853
23. 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 do-
mestic Group entities. DSV A/S is the administration company of the
joint taxation arrangement 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 506 million (2020: payable of DKK 74 million), which is included
in the financial statements of DSV A/S.
Parent Company guarantees
DSV A/S has provided guarantees for subsidiaries’ outstanding balances
with banks and liabilities to leasing companies, suppliers and public authori-
ties, etc. in the amount of DKK 6,354 million (2020: DKK 4,408 million).
Moreover, DSV A/S has issued several declarations of intent relating to
outstanding balances between subsidiaries and third parties.
24. Related-party transactions
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 related parties were made in the 2021 financial
year other than ordinary remuneration, as described in notes 6.2 and 6.3
to the consolidated financial statements.
Intra-group transactions
No intra-group transactions were made in 2021 other than as stated in
the income statement and notes.
110 DSV Annual Report 2021 Parent Company financial statements 2021
DSV A/S
Hovedgaden 630
2640 Hedehusene
Denmark
Tel. +45 4320 3040
E-mail: inf[email protected]om
www.dsv.com
CVR-No 58 23 35 28
Annual Report for the year ended
31 December 2021 – 45th financial year
Published 9 February 2022