Annual Report • Feb 9, 2022
Annual Report
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DSV A/S Hovedgaden 630 2640 Hedehusene Denmark CVR no. 58 23 35 28 1 January – 31 December 2021
DSV is one of the world's leading freight forwarders. We help companies connect with the world and ensure smooth and efficient 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 opportunities 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.
Hovedgaden 630 2640 Hedehusene Denmark
Tel. +45 43 20 30 40 Email. [email protected] CVR no. 58 23 35 28
Annual Report for the year ending 31 December 2021 (45th financial year). Published 9 February 2022.
| Letter from our CEO . | 4 |
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| Highlights 2021 . | 6 |
| GIL - our latest acquisition . | 8 |
| Five-year overview . | 9 |
| Our corporate purpose and strategy 10 |
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| 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 18 Read about our revised long-term financial targets
| Financial review . | 20 |
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| Non-financial review | 23 |
| Air & Sea | 25 |
| Road . | 28 |
| Solutions | 30 |
| shareholder information | |
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| Risk management . | 32 |
| Corporate governance . | 38 |
| Board of Directors . | 41 |
| Shareholder information . | 42 |
| Quarterly financial highlights 44 |
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In August, we acquired Agility's Global Integrated Logistics business
In 2021, we launched a new industry-leading Green Logistics product
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| Management's statement . | 94 |
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| Independent Auditor's reports . | 95 |
| Page 13 | Parent Company financial statements | 99 |
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To say 2021 was a turbulent year would be an understatement. The continuing repercussions of COVID -19 dominated and affected 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.
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 distributed DKK 18,761 million to shareholders in 2021 via share buybacks and dividends. And the DSV share price rose 49.8%.
In the past year, we saw several unprecedented factors conspiring 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 difficult questions for the logistics industry and exposing global supply chain vulnerabilities.
There is no quick fix when it comes to solving these challenges. 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 operations 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 production 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.
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, consolidating 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 momentum and progress in our other key strategic projects within IT and business development.
Our GIL integration plan is on track, and we expect to complete it in Q3 2022.
Today and tomorrow, sustainability should underpin every aspect of our business. The supply chains we support have to significantly decarbonise if they are to keep flowing sustainably, 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 sciencebased targets for cutting CO2 emissions. In 2021, we were proud to receive the Danish Climate Strategy Award in recognition 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 cooperation 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 CO2 reporting and supply chain optimisation to emission compensation and sustainable 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.
Finally, I want to acknowledge the huge contribution of our employees and thank them for their resolute efforts in very difficult 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
We understand what our customers are going through, and we will keep finding solutions.
EBIT before special items DKK 16,223 million
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 management and our acquisition of Global Integrated Logistics (GIL).
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.
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.
AMERICAS
Gross profit: DKK 8,199 million 22% of total
EBIT before special items: DKK 4,042 million
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 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
+83.5%
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
+32.6%
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
+51.3%
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 competitiveness mainly in our Solutions and Air & Sea divisions.
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.
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 significantly 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.
We estimate that bringing GIL into the DSV family will increase annual revenue by more than 20%. Once fully integrated in 2023, GIL is expected 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.
| 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 |
* 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.
| 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 |
| Effective 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 |
| ESG data | 2021 | 2020 | 2019 | 2018 | 2017 |
| CO e (g/tonne-km) - Air transport 2 |
694.4 | 704.0 | 718.2 | 728.0 | 751.0 |
| CO e (g/tonne-km) - Sea transport 2 |
6.1 | 6.2 | 6.4 | 7.0 | 7.3 |
| CO e (g/tonne-km) - Road transport** 2 |
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 |
For a definition of financial key figures and ratios, please refer to page 85. For definition of ESG data, please refer to Sustainability Report.
In 2021, we defined our corporate purpose: Keeping supply chains flowing in a world of change. We are proud to be part of the critical infrastructure that enables our customers, employees, shareholders and societies at large to grow and prosper.
COVID-19 affected our company and our industry in several ways. A positive effect 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.
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 efficient transport solutions through better planning, new technologies and innovative solutions.
We strive to help our customers, employees, shareholders and the societies in which we operate to grow. This way we create sustainable growth for DSV.
We help our customers grow. By providing reliable, cost-effective services with as little environmental impact as possible, we help our customers develop and grow their business. Our general logistics expertise and industry-specific solutions for Automotive, Industrial, Chemicals, Retail & Fashion, Healthcare, Technology and Renewable 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 business and responsible for the long-term success of our company. DSV employs more than 75,000 people worldwide – from office 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, training 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 management and global mobility programmes.
Having a diverse workforce, with people from different backgrounds all able to realise their potential, brings great advantages. 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 familiar 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 players. This gives us a strong market position. It is also a foundation 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 operational environmental footprint.
We are a United Nations Global Compact signatory, pledging to follow its 10 principles. Since 2015, we have also supported the UN Sustainable Development Goals – identifying and working systematically with nine SDGs in the areas our business affects most.
We believe in giving back to the communities we operate in, while finding new ways of cutting our operational environmental footprint.
World trade drives world prosperity, but seamless trade is not a given. Through our persistent focus on transparency, productivity and scalability, we support more efficient global trade flows for all businesses.
Based on clear targets for each business area, we standardise our service catalogues and workflows. This boosts our productivity and guarantees high quality services to customers – and it enables us to implement efficient 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 off-the-shelf IT systems. We take a systematic approach to prioritising data quality and security.
We maintain a flat, locally empowered organisation, firmly anchored 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.
For each of our main business areas, we select strategic projects and prepare separate business plans for each and prioritise how we roll them out in a group-wide road map.
The DSV Group Executive Committee sets priorities, objectives 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.
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.
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.
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.
Governance Business ethics. We do business with integrity, respecting different 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 understanding of our corporate sustainability objectives.
Anti-corruption Conflict of interest Anti-competitive behaviour Supplier engagement and conduct Data privacy Taxes
CO2 emissions Waste management and recycling Product and service innovation
Our ESG strategy
Employee engagement Diversity and gender equality Community engagement Health and safety Human rights Labour rights
We have a responsibility to drive our own operations and the industry towards minimising the environmental impact of transport and logistics services.
Social
Our people. We provide safe and healthy workplaces, and we strive to attract, motivate and retain talented people by offering responsibility, empowerment and growth opportunities.
We engage with and support the communities we do business in, and we use our expertise to support people in need.
We have defined strategies and specific targets for the three areas: environment, social and governance. As a global company, we rely on strong alignment throughout the organisation – from top management to divisions and countries – in order to realise the strategy for each of the areas.
We value open and honest communication with our employees, 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 organisations in our industry and other areas, in order to cooperate and make progress within different areas. Especially within the environmental area, we acknowledge that we cannot achieve our targets alone – we have to engage in partnerships with customers, suppliers and organisations, such as Clean Cargo Working Group (CCWG), GoodShipping and Eco-Skies Alliance.
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 CO2 footprint. We are working on a number of different 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, following the Science Based Targets Initiative (SBTi). The targets aim to reduce our CO2 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.
As part of our strategic management, we regularly engage in dialogue with our key stakeholders.
The long-term negative effects 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) framework 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, implementation 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.
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 different future scenarios for transport is high, but, based on our current assessment, we do not expect a significant negative impact on our business operations as a direct result of climate change.
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.
Our M&A strategy does not only contribute to DSV's financial 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.
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.
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.
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 logistics, cargo consolidation, insurance, customs clearance and pick-and-pack.
Our highly digitalised operation gives us competitive advantage. We integrate 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 offerings. Together with a bigger focus on sustainable logistics, our market and services are continuously developing.
By understanding market trends in our own industry – and in others that affect us – we can take advantage of opportunities as they arise and act quickly to reduce risks.
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 consists 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.
COVID-19 is still affecting 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.
Customers are adapting to different conditions. They wanted more transparent supply chains before the pandemic and that need has only increased – especially when it comes to early warnings on delays. They are also making 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 buffer stock at distribution centres is another. But with more countries and locations involved, complexity goes up – which offers 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 shifts in consumers' buying behaviour. More people switched from brickand-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 continuously 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.
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 shifting 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 different supply chain parties: shippers, freight forwarders, carriers and authorities.
DSV believes that further digitalisation is crucial to the long-term evolution 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.
Top five global freight forwarders and market share based on 2020 revenue.
In recent years, a number of purely digital forwarders have entered the industry. These organisations tend to offer 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.
While many large ocean carriers maintain a consistent strategy and market focus, some have changed track in recent years.
They now aim to provide door-to-door transport services, air and overland 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 examples 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.
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 frameworks are increasingly central to informing strategic decisions and influencing how organisations operate.
At DSV, we are actively embedding sustainable practices into different aspects of our business. This is reflected in the way we design our offices and warehouses and, not least, in our suite of Green Logistics services launched in 2021.
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 affected 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 outperform underlying market growth in the coming years.
Global and local trade flows are impacted by politics. Across the globe, we continue to see new examples of protectionism, changes to tariffs and trade regulation, trade restrictions, embargoes and new security measures.
Brexit is an obvious example. At the start of 2021, the UK left 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 tariff changes have brought challenges for logistics providers, and at DSV we have added more staff 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.
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.
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.
Digitalisation is changing the way we interact with customers and vendors 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.
In 2021, our digital freight forwarding platform, myDSV, took more than 300,000 bookings a month. This platform is now part of our critical infrastructure, 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 recent myDSV addition, providing real-time GPS tracking and traffic 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.
Automating and optimising warehouse processes improve customers' experiences and enable us to utilise warehouse space more efficiently. The recent growth in e-commerce transactions means that the demand for efficient 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 storage and retrieval technology. Four out of a total of 20 planned warehouses are now operating, enabling smaller companies (both B2C and B2B) to benefit from warehouse automation usually only accessible to bigger customers.
Our DSV Innovation Hub drives our global innovation efforts, 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.
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 | 2021 | Outlook |
|---|---|---|
| (DKKm) | actual | 2022 |
| Operating profit (EBIT) before special items Effective tax rate |
16,223 24.5% |
18,000-20,000 23% |
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 situation in transport markets – with congestion, tight capacity and high rate levels – will continue in the first half of 2022. A gradual improvement could start during the second half of the year, 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 expected EBIT contribution of DKK 3,000 million in 2022. Fullyear impact of the GIL integration is expected in 2023. Special items at the level of DKK 1,000 million related to the integration 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.
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 economic 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 operational excellence, we see opportunities to improve productivity across the Group. Our IT systems, infrastructure and backoffice functions are scalable, providing opportunities to leverage 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 improved 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 momentum 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:
| 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 |
This Annual Report includes forward-looking statements on various matters, such as expected earnings and future strategies and expansion plans.
Such statements are uncertain and involve various risks, because many factors, some of which are beyond our control, may result in actual developments differing considerably from the expectations set out in the 2021 Annual Report.
Such factors include, but are not limited to, general economic and business conditions, exchange rate and interest rate fluctuations, the demand for our services, competition in the transport sector, operational problems in one or more of DSV's subsidiaries and uncertainty in connection with the acquisition and divestment of enterprises.
The aim of DSV's target capital structure is to ensure:
Our target financial gearing ratio is below 2.0 x EBITDA before special items. The ratio may exceed this level following significant acquisitions.
Our free cash flow allocation prioritisation remain unchanged:
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.
Group Management continuously monitors whether the capital structure is in line with the targets, and excess capital is distributed 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.
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.
Michael Ebbe CFO
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.
| 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 | |
| Staff 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 |
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 affected 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 offset by the higher average invested capital following the GIL transaction.
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.
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 after the pandemic in 2020, market share gains and the impact of acquisitions.
| Total revenue | 182,306 | 115,932 | 58.6% |
|---|---|---|---|
| Group and eliminations | (3,745) | (2,760) | n.a. |
| Solutions | 18,734 | 14,608 | 28.4% |
| Road | 35,416 | 30,395 | 16.2% |
| Air & Sea | 131,901 | 73,689 | 81.6% |
| (DKKm) | 2021 | 2020 | Growth* |
* Growth including M&A and in constant currencies.
Operating margin
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 extraordinary 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 division 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.
For the Group, EBIT before special items rose 71.3%, driven by strong gross profit growth, continued focus on cost management and the positive impact of the GIL integration. With an increase of 83.5%, our Air & Sea division grew the most in 2021, driven both by underlying improvements 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.
| Total EBIT before special items | 16,223 | 9,520 | 71.3% |
|---|---|---|---|
| Group and eliminations | (177) | (57) | n.a. |
| Solutions | 1,775 | 1,161 | 51.3% |
| Road | 1,857 | 1,390 | 32.6% |
| Air & Sea | 12,768 | 7,026 | 83.5% |
| (DKKm) | 2021 | 2020 | Growth* |
* Growth including M&A and in constant currencies.
Total staff 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. Other external expenses totalled DKK 4,173 million in 2021 (2020: DKK 3,291 million) and were affected by the same factors as staff 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 effective tax rate was affected by non-deductible restructuring costs and other one-offs during the year.
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 offset by the capital increase from the GIL integration.
Cash flow from operating activities in 2021 rose by 18.7% to DKK 12,202 million. Cash flow was positively affected by higher EBITDA before special items but offset 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 difference 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 impacted 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 shareholder 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).
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. After 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.
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.
| Indicator | Unit | Target 2022 | 2021 | 2020 |
|---|---|---|---|---|
| CO2e - Air transport* | g/tonne-km | 694.4 | 704.0 | |
| CO2e - Sea transport* | g/tonne-km | 6.1 | 6.2 | |
| CO2e - 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% |
* Targets regarding CO2 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.
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 CO2 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 mapping out the expected pathways for different sustainable fuels and technologies across air, sea and road freight. From applicability 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 implement 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 baseline for our Science Based Targets. Therefore, we do not comment on our total emissions and the progress compared to the 2019 baseline. However, we can see that our energy efficiency (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 efficient technology and better utilisation of the transport equipment.
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 certification. This certification proves to our customers – and to our employees – that DSV runs efficient and streamlined processes to ensure a safe and healthy workplace for our people.
Reporting on corporate social responsibility cf. section 99a of the Danish Financial Statements Act
We have reported separately on corporate social responsibility in our Sustainability Report 2021, in accordance with section 99a of the Danish Financial Statements Act.
We have reported separately on management gender composition in our Sustainability Report 2021, in accordance with section 99b of the Danish Financial Statements Act.
Reporting on diversity cf. section 107d of the Danish Financial Statements Act We have reported separately on diversity in our Sustainability Report 2021, in accordance with section 107d of the Danish Financial Statements Act.
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.
In early 2021, we introduced DSV's global Diversity and Inclusion Policy. This policy formalises our position on equal rights for all our staff 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 staff 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.
For more information on developments within each ESG area, please refer to our Sustainability Report at https://www.dsv.com/ en/sustainability-reports
Our Code of Conduct (CoC) defines what doing business with integrity means at DSV. Available in 10 different 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-learning 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 misconduct. During 2021, 47 cases were reported compared to 42 in 2020. None of the reported cases were of material nature.
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 restrictions on supplier generation, human rights, anti-trafficking and anti-bribery. We are convinced that once all our suppliers have been onboarded and the TPRM is fully implemented, it will operate as an efficient tool to mitigate risk among all suppliers in our network.
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
Operating profit
+83.5%
DKK 12,768 million
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.
| and key figures (DKKm) | 2021 | 2020 | Growth* |
|---|---|---|---|
| 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 | |
| Staff 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.
In 2021, supply chains continued to be disrupted by the pandemic, subsequently impacting both demand and available capacity.
The global air freight market continues to be affected by high demand and limited belly space in passenger planes, meaning less available cargo capacity and high rates. Passenger traffic 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 different 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 discontinued activities, the division's 2021 growth figures were in line with the market.
The sea freight market is still characterised by solid demand and tight capacity due to port congestion and lack of equipment. The US West Coast ports have been the most congested, 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 second half of 2021, partly because of capacity constraints but also lower growth rates on the trans-Pacific trade lane.
| 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 |
In 2021, we saw sea freight volume growth of 13.1% (including 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.
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 increased the time we spent managing each shipment.
We focused on maintaining strong key strategic carrier relationships all year for both air and sea freight. We also expanded 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 infrastructure and processes put us in a strong position for more Air & Sea growth.
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 activity 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 effect 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 increase 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.
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 staff and scalability 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 affected 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 offset by increased invested capital because of the GIL acquisition.
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 solutions, helping our customers and keeping supply chains flowing in a challenging market.
We will continue our efforts 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 offer 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.
With the inclusion of GIL, we significantly strengthened the Air & Sea division and are now a top-3 player in the market.
Operating profit
+32.6%
DKK 1,857 million
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.
| and key figures (DKKm) | 2021 | 2020 | Growth* |
|---|---|---|---|
| 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 | |
| Staff 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.
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 after 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, increased road freight rates and general cost inflation across most regions. Some sectors, like Automotive, suffered, 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.
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 management system) and improvements to our network and operational procedures. We completed planned pilots in three countries over the year, and, overall, the Road Way Forward programme is on track.
Geographic
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.
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 efficient 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 effect 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.
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 lessthan-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 subcontractors to make sure we handle the changes and secure the necessary capacity.
The GIL integration is well underway, and we are looking forward 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 offering more customers these services.
EMEA 95%
Operating profit
+51.3%
DKK 1,775 million
Driven by organic growth and the positive effect 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.
| (DKKm) | 2021 | 2020 | Growth* |
|---|---|---|---|
| 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 | |
| Staff 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.
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 offering, new warehouse capacity and high utilisation of existing capacity. With GIL on board, the division is well placed for more growth in the coming years.
In recent years, the UTi and Panalpina acquisitions strengthened 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 often warehouse automation.
During 2021, we addressed that call, making good progress on several automation projects. We launched DSV Fulfilment Factory: a string of multi-user facilities to help us offer 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, efficient warehouses across
Division gross profit can be broken down into geographical areas:
most markets remains high. During the year, we finished constructing several large, multi-client warehouses in key European, 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 offering 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.
APAC
11%
EMEA
71%
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 because 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.
In the near future, the contract logistics market will be characterised 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 business. An improved healthcare sector offering and new e-commerce 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, consolidating and developing new, modern warehouse capacity and continuing to consolidate and optimise our IT infrastructure and back-office workflows.
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 identification, 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.
Our risk management process is structured into two parallel tracks:
Every week, operational risks and other matters of importance that arise as part of the daily operation of our business are gathered across the organisation, 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.
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 management 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 assigned to risk owners within the Group to make sure that relevant preventive measures are implemented. In line with the established framework, the key risks are reported to the Audit Committee and the Board of Directors.
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 effectiveness of our hedging strategies. Please refer to Chapter 4 of the notes for additional information on our financial risks.
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 mitigate 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 strategies into consideration. However, we wish to mention that these scenarios are associated with some degree of uncertainty.
Risk description
IT systems, networks and related processes are crucial to our day-today 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.
Consolidation, centralisation and standardisation of our systems and processes are cornerstones of our IT strategy. This strategy also applies to acquired companies, which we move to our operational and administrative 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 decommissioning 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 software 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 sufficient resources are allocated to the projects and that proactive monitoring is in place – and notifies Management if implementation starts deviating from plan.
In 2021, we experienced stable performance from our IT and security systems – both in terms of operational stability and mitigation of cyberattacks, 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 infrastructure 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.
An economic recession triggered by e.g. geopolitical events, distortion of the financial markets or a global pandemic, will indirectly impact our activity 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, although restrictions may be counterbalanced to some extent by increasing 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.
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, warehouses 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.
The global economic impact of the COVID-19 pandemic has, similar to the previous year, been high on the agenda for 2021. However, by taking advantage of our scalable business model, emphasising a dedicated focus on keeping costs in check, and by executing on the business opportunities 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 regional 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.
Retention and attraction failure
Employees are a vital resource to DSV.
Our business depends on highly-qualified management teams and employees with technical and operational qualifications at all organisational levels – who are capable of handling situations that are out of the ordinary and collectively contributing to the Group's financial results.
Failure to attract new talent or to retain existing, experienced key employees can potentially have long-term consequences for the operational, strategic and financial development of the Group.
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 offer a supportive and inspiring working environment for all employees. This includes a good and safe physical environment in offices 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 empowerment, enabling our employees to influence their everyday work life. Additionally, we offer clear career-advancing opportunities to talented employees.
We implement this strategy through several initiatives driven by both local management teams and our Group HR department. Examples include our updated Inclusion and Diversity Policy, employer branding activities and talent development programmes.
Although the world has been through a global pandemic in the past years – which has had a derived effect on the global economy – this has not affected 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 staff 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 uncertainties 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.
At all levels of our organisation and in all the countries we do business, we are committed to honest and ethical business practices and complying 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 relating to tax, customs, VAT, data privacy and competition law continue to increase in scope and complexity. Trade embargoes impacting international 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 customers and other stakeholders. Additionally, cases of non-compliance may lead to fines, claims, etc., for the Group, our Management and employees.
'We do not deal in compliance' is a mantra which is well-known throughout the DSV organisation. The high standards are set not only to safeguard 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, containing clear guidelines on how to identify compliance-related issues and how to act accordingly. In addition, communicating and creating awareness of relevant issues is high on our agenda, 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.
Following the trend from previous years, regulatory requirements continue to expand in scope and complexity within areas such as international 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 existing 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 adding additional complexity, the overall compliance risk exposure is considered to be largely on par with last year.
Growth through acquisitions is fundamental to our corporate strategy, and the current DSV network is, to a large extent, a result of past strategic acquisitions.
Acquisitions always entail a risk of unsuccessful integration of the acquired company, which could result in cost synergies, strategic advantages 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.
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 involve 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 effective 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 activities is anchored with and led by local management teams, based on guidance from Group Management. Local ownership ensures that acquired activities are well integrated.
In August 2021, DSV acquired GIL in a DKK 30 billion business combination – 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 exposure 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.
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 opportunity to optimise workflows and increase productivity, while also providing higher levels of service and product offerings 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.
Our overall mitigation approach focuses on monitoring of the logistics market, technologies, customer offerings and other processes that could potentially impact the way we do business. As highlighted in 'A responsive 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 procedures to ensure that we have a strong and competitive product offering 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 benefits of technology.
An indirect impact of new technologies and changes in the competitive landscape is that some of the basic freight forwarding services are becoming 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.
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 significant 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 technology risks occurring remain largely unchanged from last year.
Climate Failure to adapt to and mitigate risks from climate
strategy
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 tripling 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 collaboration 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.
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 companies 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.
During 2021, the organisation has made good progress on several strategic 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 working 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.
The long-term negative effects 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 increasing 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 effect on the longterm growth potential on the intercontinental transport lanes.
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 climaterelated 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 dedicated to contributing to reducing global CO2 emissions through our commitment 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-efficient infrastructure and supporting green innovations.
As reflected in our risk map, we are currently not seeing any significant financial 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 understanding 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 projections on the long-term effects on our business involves a significant degree of uncertainty and guesswork.
For additional details and results on our 2021 Task Force on Climaterelated Financial Disclosures (TCFD) climate risk assessment, please see the DSV Sustainability Report 2021: https://www.dsv.com/en/ sustainability-reports
change
Together, the Board of Directors and the Executive Board form the governing 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.
In October 2021, the Executive Board was expanded as Michael Ebbe – former Deputy Group CFO – joined the Board and took up the position as 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 business, 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.
Jens Bjørn Andersen
| Office | COO and Vice CEO |
|---|---|
| Member since | 2002 |
| Born | 1969 |
Office CEO Member since 2008 Born 1966
Jens H. Lund
| CFO | |
|---|---|
| Member since | 2021 |
| Born | 1970 |
| Office |
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 according 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.
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 effectively. 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.
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 management 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.
The use of an external advisor helps to ensure an independent perspective 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 presented by the external advisor.
The evaluation itself is prepared using a mix of questionnaires and interviews. 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.
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.
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.
| Board of Directors |
Audit Committee |
Nomination Committee |
Remuneration 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 |
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 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 sufficient incentive for the longterm 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
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 Governance and is available at: https://www.dsv.com/en/remuneration-reports
In managing DSV, the Board of Directors apply the latest Recommendations 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 intentions of the Recommendations. The Board regularly assesses its procedures 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-reports
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: https://www.dsv.com/en/data-ethics
Thomas Plenborg Office Chairman Member since 2011 Up for re-election Yes Born 1967
Committee Audit Committee Member Nomination Committee Chairman Remuneration Committee Chairman
Committee Audit Committee -Nomination Committee Member Remuneration Committee Member
Jørgen Møller
Office Deputy Chairman Member since 2015 Up for re-election Yes Born 1950
Birgit W. Nørgaard Office Member Member since 2010 Up for re-election Yes Born 1958
• CEO of DSV Air & Sea Holding A/S 2002-2015
Nomination Committee -Remuneration Committee -
Committee
Skills and experience
Other Board positions CM ISS A/S* CM Molslinjen A/S CM Abacus Medicine A/S CM Bikubenfonden
airline industry (industry expert) • Acquisition and divestment of enterprises
• General international management experience • Extensive experience in shipping, logistics and the
Annette Sadolin
Office Member Member since 2009 Up for re-election No Born 1947
Born 1962
Office Member Member since 2021 Up for re-election Yes
DC Agility Public Warehousing Company K.S.C.P.*
Audit Committee Member Nomination Committee -Remuneration Committee -
CM Thinkproject GmbH ME KIRKBI A/S ME The Lego Foundation ME WS Audiology A/S
| CM NO Invest A/S and two | ME | NCC AB* | |
|---|---|---|---|
| related subsidiaries | ME ABP Asspcoated British Ports | ||
| DC | NNE A/S | ME | WSP Global Inc.* |
| DC | The Danish Council for ICT | ME | RGS Nordic A/S |
| DC Dansk Vækstkapital I | ME Consolis Group SAS | ||
| ME | Dansk Vækstkapital II |
ME Falck A/S ME UK P&I ME TT Club
| Committee | |
|---|---|
| Audit Committee | |
| Nomination Committee | |
Remuneration Committee Member
Beat Walti
Office Member Member since 2019
Born 1964
Up for re-election Yes Born 1969
Marie-Louise Aamund
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 increased 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.
On 31 December 2021, DSV had 86,073 registered shareholders. The registered shares totalled 233 million, corresponding to 97.1% of the share capital. The 25 largest shareholders 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:
Our capital allocation principles are described on page 19. DSV has increased both share buybacks and dividend paid over the last five years.
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 connection 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.
| 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 |
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.
The following authorities have been granted to the Board of Directors:
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.
Through open and proactive communication, we wish to provide the basis for fair and efficient pricing of the DSV share.
To keep investors and other stakeholders up to date with the latest developments, our Executive Management host conference calls following the release of financial results. Throughout the year, Executive Management and Investor Relations stay in close contact with existing and potential investors as well as market analysts, engaging with them through virtual roadshows 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
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
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 |
The financial calendar for 2022 is as follows:
H1 2022 Report 26 July
Q3 2022 Report 25 October
| 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.
| Income statement . . |
46 |
|---|---|
| Statement of comprehensive income | 46 |
| Cash flow statement | 47 |
| Balance sheet | 48 |
| Statement of changes in equity | 49 |
| Notes | 50 |
| (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 |
| Staff 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 differences 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 |
| (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) |
| 4.2 Cash and cash equivalents 31 December |
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.
| 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 |
| 2021 | 2020 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Attributable to shareholders of DSV A/S | Attributable to shareholders of DSV A/S | |||||||||||
| (DKKm) | Share capital | Reserves* | Retained earnings |
Total | Non controlling interests |
Total equity | Share capital |
Reserves* | Retained earnings |
Total | Non controlling 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.
| 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 |
| 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 | Staff costs . . 56 |
| 2.6 | Amortisation and depreciation . 56 |
| 2.7 Special items . 57 |
|
| 2.8 | Financial income and expenses . 57 |
| 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 |
| 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 |
| Tax | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 5.1 Income tax . | 75 | |||||||||||||||
| 5.2 Deferred tax . | 76 |
| 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 |
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.
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.
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 measured 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.
All amendments to the International Financial Reporting Standards (IFRS) effective 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 statements or notes presented.
In preparing the consolidated financial statements, Management makes various accounting judgements and estimates that affect 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 effects 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:
Additional description of management judgements and estimates made are provided in the relevant notes.
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 after elimination of all intra-group transactions, balances, income and expenses.
The Group holds interests in 570 entities and was composed as follows at 31 December 2021:
| Region | ||||
|---|---|---|---|---|
| Entities (Number) |
EMEA | Americas | APAC | Total |
| Subsidiaries | 356 | 68 | 134 | 558 |
| Associates | 8 | 1 | 3 | 12 |
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.
On initial recognition, foreign currency transactions are translated into the functional currency at the exchange rate at the transaction dates. Foreign currency translation differences 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 difference between the exchange rates at the reporting date and the transaction date or the exchange rate used in the latest annual report is recognised in the income statement under financials.
Foreign currency translation differences arising on the translation of non-monetary items, such as investments in associates, are recognised directly in other comprehensive income.
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 differences arising on translation of the equity of foreign entities and on translation of receivables considered part of net investment are recognised directly in other comprehensive income.
Foreign exchange differences arising on the translation of income statements 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.
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.
In preparing the Annual Report, Management seeks to improve the information value of the consolidated financial statements, the notes to the statements and other measures disclosed by presenting the information in a way that supports the understanding of the Group's performance 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 relevant 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.
The presentation of items and subtotals is based on separate classification 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 results before and after special items, please see note 2.7 Special items.
The IASB has issued a number of new standards and amendments not yet in effect 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 effect.
None of the new standards issued are currently expected to have any significant impact on the Group's financial statements when implemented.
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.
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 operating segments reflect our divisional and Group reporting used for management decision-making.
Our business operations are carried out by three divisions, forming the basis of our segment reporting.
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.
The Road division provides road freight services across Europe, Middle East, North America and South Africa.
The Solutions division offers contract logistics services, incl. warehousing and inventory management, across the globe.
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
statement of segment information, but are presented under 'Nonallocated items and eliminations'.
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'.
DSV operates in most parts of the world and has activities in more than 90 countries, which are divided into the following geographical regions:
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.
DSV is not reliant on any major customers. No single customer exceeds 5% of combined Group revenue.
| Non-allocated items | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Air & Sea | Road | Solutions | and eliminations | Total | |||||||
| Segment information – divisions (DKKm) | 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 | |
| Staff 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 |
* Reference is made to the income statement for a reconciliation from operating profit before special items to profit for the year.
| Geographical information – major countries | Revenue | Non-current assets** | ||||
|---|---|---|---|---|---|---|
| (DKKm) | 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 | Revenue | Non-current assets** | ||||
|---|---|---|---|---|---|---|
| (DKKm) | 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.
Revenue comprises freight forwarding services, contract logistics and other related services delivered in the financial year.
Revenue from services delivered is recognised in accordance with the over-time recognition principle following the satisfaction of various milestones as the performance obligation is fulfilled towards the customer. Our main services comprise air, sea, road and solutions services as described in the following.
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 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 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 comprise contract logistics, incl. warehousing and inventory management, across the globe. Solutions services are reported within the Solutions reporting segment. Solutions services are characterised by very short delivery times, happening almost instantaneously as agreed actions under the customer contract are carried out.
Revenue from services delivered are recognised based on the price specified in the contract with the customer. Revenue is measured excluding VAT and other tax collected on behalf of third parties, and any discounts are offset 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 disclosed 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 recognised 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 after 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 geographical | EMEA | Americas | APAC | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| segmentation (DKKm) | 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 | ||||||||
Revenue is specified as follows:
| Revenue (DKKm) | 2021 | 2020 |
|---|---|---|
| Sale of services Other operating income |
181,707 599 |
115,298 634 |
| Total revenue | 182,306 | 115,932 |
Sale of services includes revenue from freight forwarding services, contract 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 noncurrent assets and income from insurance contracts.
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 staff 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.
| Direct costs (DKKm) | 2021 | 2020 |
|---|---|---|
| Cost of carriers | 133,631 | 78,473 |
| Staff costs, hourly workers | 6,280 | 5,274 |
| Other costs of operation | 4,780 | 3,651 |
| Direct costs | 144,691 | 87,398 |
Other external expenses include expenses relating to marketing, IT, other rent, training and education, office premises, travelling, communications as well as other selling costs and administrative expenses, less costs transferred to direct costs.
| 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 |
Staff costs include wages and salaries, pensions, social security costs and other staff costs for salaried employees, but exclude staff costs for hourly workers, which are recognised as direct costs.
Staff costs are recognised in the financial year in which the employee renders the related service. Costs related to long-term employee benefits, e.g. sharebased 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.
| Staff 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 staff 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 staff 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 depreciation for the year are recognised based on the amortisation and depreciation profiles of the underlying assets (see notes 3.2 and 3.3).
| Amortisation and depreciation (DKKm) | 2021 | 2020 |
|---|---|---|
| Customer relationships | 212 | 208 |
| Software 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 |
Special items are used in connection with the presentation of profit or loss for the year to distinguish consolidated operating profit from exceptional items, which by their nature are not related to the Group's ordinary operations or investment in future activities.
Special items comprise:
Special items reconcile to the income statement items as specified in the table below:
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 and expenses include interest, share of associates' profit/loss, foreign currency gains and losses and impairment of securities, payables and foreign currency transactions as well as amortisation of financial assets and liabilities, including finance lease obligations. Furthermore, realised and unrealised gains and losses on derivative financial instruments that cannot be classified as hedging contracts are included.
| Financial income (DKKm) | 2021 | 2020 |
|---|---|---|
| Interest income | 202 | 248 |
| Share of associates' profit, net of tax | 4 | 6 |
| Total financial income | 206 | 254 |
Interest income includes interest on financial assets measured at amortised cost of DKK 202 million (2020: DKK 248 million).
| 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 |
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 | |
| Staff 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 | |
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 working 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.
The carrying amount of goodwill is tested for impairment at least annually 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 management and operational structure. The cash-generating units thereby follow 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 discounted future net cash flow from the cash-generating unit to which the goodwill relates. In calculating the present value, discount rates are applied reflecting the risk-free interest rate with the addition of risks relating to the individual cash-generating units, such as geographical and financial exposure.
The carrying amount of other non-current assets is tested for impairment 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.
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 period. These are based on an assessment of current and future developments in the three cash-generating units and on historical data and assumptions of future expected market developments, including expected long-term average market growth rates.
Material value drivers affecting the future net cash flows of the three cash-generating units are:
The Air & Sea division operates globally, so developments in the global economy and world trade therefore have a material impact on the division'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 affect the division's cash flow.
The Road division mainly operates on the EMEA and US markets, which means that the division's future net cash flow is affected by the growth rate in these regions. Developments in gross profit per shipment, including truck and terminal utilisation rates, cost management initiatives and development in internal productivity (number of shipments per employee) also affect the division's cash flow.
The Solutions division operates globally, so developments in the global economy and world trade therefore have a material impact on the division's future net cash flow. Developments in warehouse lease costs and costs of related services, utilisation of warehouse facilities, cost management initiatives and development in internal productivity (number of order lines per employee) also affect the division's cash flows.
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 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 following. 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.
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 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.
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Goodwill impairment test at 31 December 2021 (DKKm) | 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% |
Only goodwill arising from business combinations is recognised in the financial statements. Goodwill is measured as the difference 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.
On initial recognition, customer relationships identified from business combinations are recognised in the balance sheet at fair value. Subsequently, 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.
Computer software 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 software and other directly attributable expenses of preparing the software for its intended use.
After commissioning, software is amortised on a straight-line basis over its expected useful life. The amortisation period is 1-10 years.
| 2021 | 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Intangible assets (DKKm) | Goodwill | Customer relationships |
Software | Software in progress |
Total | Goodwill | Customer relationships |
Software | Software in progress |
Total |
| 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 |
Land and buildings and other plant and operating equipment are measured 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 recognised 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 different 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 |
Total | Land and buildings |
Other plant and operating equipment |
Property, plant and equipment in progress |
Total |
| 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 |
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:
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.
Judgement is applied in determining the depreciation period and future residual value of the assets recognised and is generally based on historical experience. Reassessment is done annually to ascertain that the depreciation basis applied is still representative and reflects the expected life and future residual value of the assets.
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 criteria 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.
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.
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 direct costs in the income statement.
| Inventories (DKKm) | 2021 | 2020 |
|---|---|---|
| Stocks | 119 | 57 |
| Property projects under construction | 165 | 1,369 |
| Total | 284 | 1,426 |
Inventories mainly consist of land and buildings under construction held for the purpose of sale in the ordinary course of business (property projects). In total, DKK 1,562 million relating to property projects was recognised as an expense in 2021 (2020: DKK 1,169 million).
Whether a contract contains a lease is assessed at contract inception. For identified leases, a right-of-use asset and corresponding lease liability are recognised on the lease commencement date.
Upon initial recognition, the right-of-use asset is measured at cost corresponding to the lease liability recognised, adjusted for any lease prepayments or directly related costs, including dismantling and restoration costs. The lease liability is measured at the present value of lease payments 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.
The lease liability is measured at amortised cost using the effective interest 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.
In accounting for lease contracts, various judgements are applied in determining right-of-use assets and lease liabilities. Judgements include assessment of lease periods, utilisation of extension options and applicable discount rates.
Right-of-use assets classified as land and buildings mainly relate to leases of warehouses, terminals and office buildings, whereas assets recognised as other plant and operating equipment mainly relate to leases of trailers, trucks, company cars, forklifts, IT hardware and other office 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:
| Contractual maturity | |
|---|---|
| ---------------------- | -- |
| of lease liabilities (DKKm) | 2021 | 2020 |
|---|---|---|
| 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 |
The profit or loss and cash flow impact of leases recognised for the year are specified below:
| or loss and cash flow (DKKm) | 2021 | 2020 |
|---|---|---|
| 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 |
| 2021 | 2020 | ||||||
|---|---|---|---|---|---|---|---|
| Right-of-use assets (DKKm) | Land and buildings |
Other plant and operating equipment |
Total | Land and buildings |
Other plant and operating equipment |
Total | |
| 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 |
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 mortality. The present value is only calculated for benefits to which the employees 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. Pension costs for the year are recognised in the income statement based on actuarial estimates and the financial outlook at the beginning of the year.
Differences between the calculated development in pension plan assets and liabilities and the realised values are recognised in other comprehensive income as actuarial gains or losses.
Changes in benefits payable for employees' past services to the company 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 already earned the right to the adjusted benefits. Otherwise, they will be recognised in the income statement over the period in which the employees earn the right to the adjusted benefits.
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, net | 908 | 1,219 |
|---|---|---|
| Fair value of pension plan assets | 4,785 | 2,999 |
| Present value of defined benefit plans | 5,693 | 4,218 |
| Pension obligations (DKKm) | 2021 | 2020 |
Of these obligations, DKK 1,032 million relates to unfunded pension obligations (2020: DKK 863 million) and negative DKK 124 million relates to partly funded obligations (2020: DKK 356 million). The latter is primarily due to the Swiss plans being overfunded.
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:
| Total costs recognised | 567 | 91 | 658 |
|---|---|---|---|
| Financial expenses | - | 17 | 17 |
| Staff costs | 567 | 74 | 641 |
| Pension cost 2021 (DKKm) | Defined contribution plans |
Defined benefit plans |
Total |
| Total costs recognised | 578 | 43 | 621 |
|---|---|---|---|
| Financial expenses | - | 16 | 16 |
| Staff costs | 578 | 27 | 605 |
| Pension cost 2020 (DKKm) | Defined contribution plans |
Defined benefit plans |
Total |
Development in the present value of defined benefit pension obligations break down as follows:
| obligations (DKKm) | 2021 | 2020 |
|---|---|---|
| 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 |
The expected average duration of the obligations is 14 years.
| Total obligations recognised | 5,693 | 4,218 |
|---|---|---|
| > 5 years | 4,740 | 3,421 |
| 1-5 years | 747 | 589 |
| 0-1 year | 206 | 208 |
| obligations (DKKm) | 2021 | 2020 |
Development in the fair value of pension plan assets breaks down as follows:
| 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 |
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:
| Composition of pension plan assets (%) | 2021 | 2020 |
|---|---|---|
| Shares | 52% | 50% |
| Bonds | 37% | 37% |
| Insurance contracts | 11% | 13% |
| Total | 100% | 100% |
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.
| Sensitivity analysis (DKKm) | 2021 | 2020 |
|---|---|---|
| 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 |
The most significant defined benefit plans of the Group relate to Germany, 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 employees born in or before 1978 and is based on a collective labour agreement. Salaried employees born in or after 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.
| 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% |
| Sweden | DUS14 (w-c) |
|---|---|
| Germany | RT Heubeck 2018 G |
Other 0.1-6.8% 0-10.0% 0-2.0% Weighted average 1.6% 2.9% 1.0%
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 settlement of the relevant obligation and are discounted if deemed material.
Management continually assesses provisions, including contingencies and the likely outcome of pending and potential legal proceedings. The outcome 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 have not been discounted as the effect thereof is immaterial. Provisions are expected to be settled within two years in all material respects.
Restructuring costs relate mainly to the integration of acquirees and the restructuring plans previously announced, which consist mainly of termination benefits and costs under terminated leases.
Provisions for disputes and legal actions relate mainly to probable liabilities taken over at the acquisition of enterprises.
Other provisions relate mainly to restoration obligations in connection with property leases and onerous contracts relating to business combinations.
| Provisions at 31 December | 673 | 940 | 3,736 | 5,349 |
|---|---|---|---|---|
| Current liabilities | 459 | 496 | 886 | 1,841 |
| Non-current liabilities | 214 | 444 | 2,850 | 3,508 |
| Current/non-current classification: | ||||
| Provisions at 31 December | 673 | 940 | 3,736 | 5,349 |
| Currency translation | 10 | 15 | 16 | 41 |
| Reversal of provisions made in previous years | (36) | (40) | (108) | (184) |
| Used for the year | (533) | (132) | (606) | (1,271) |
| Additions from business combinations | 248 | 271 | 2,205 | 2,724 |
| Additions for the year | 203 | 383 | 675 | 1,261 |
| Provisions at 1 January | 781 | 443 | 1,554 | 2,778 |
| Provisions - 2021 (DKKm) | Restructuring costs |
Disputes and legal actions |
Other | Total |
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 longterm 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 exceeds the target, for investments and business combinations, and for share buybacks or distribution to the Company's shareholders.
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) |
Reserves as presented in the statement of changes in equity comprise treasury reserve, hedging reserve and translations reserve, as specified on the previous page.
The reserve comprises the nominal value of treasury shares. The difference 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.
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 effective.
The reserve comprises foreign currency translation arising on the translation of net investments and related hedging in entities with a functional currency other than DKK.
The reserve is dissolved upon disposal of entities.
| 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 |
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.
The Group aims to spend its free cash flow in the following order of priority:
The Group increased its net interest-bearing debt in 2021 by DKK 11,056 million (2020: reduced by DKK 166 million). Net interestbearing 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 |
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.
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 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) | 2021 | 2020 |
|---|---|---|
| Exchange control restrictions | 654 | 736 |
| Insurance collaterals | 178 | 187 |
| Other collaterals | 7 | 7 |
| Total | 839 | 930 |
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 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.
The financial liabilities of the Group are divided into four financing categories: 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, corresponding to the capitalised value using the effective interest method,
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 Financing activities 2021 (DKKm) Beginning of year Cash flow Additions from business combinations Currency effects 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
* Other includes additions and remeasurement of financial liabilities.
4.3 Financial liabilities so that the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Lease liabilities 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) | 2021 | 2020 |
|---|---|---|
| Non-current liabilities | 28,841 | 17,124 |
| Current liabilities | 7,912 | 4,035 |
| Total | 36,753 | 21,159 |
Non-cash change
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 issuance 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, according to which the Group's debt must be repaid in case of a change of control. 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 provided based on contractual cash flows, including estimated interest payments. The amounts have not been discounted and as such do not reconcile directly to the balance sheet.
Due to its global activities, the Group is exposed to exchange rate fluctuations 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 affected 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 proportion 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 |
The Group's financial liabilities fall due as follows:
| Total | 53,821 | 58,249 | 25,429 | 11,787 | 21,033 |
|---|---|---|---|---|---|
| Interest rate derivatives | 7 | (9) | (9) | ||
| Currency derivatives | 33 | 33 | 33 | ||
| Trade payables | 17,040 | 17,040 | 17,040 | ||
| Lease liabilities | 15,288 | 18,330 | 3,692 | 9,835 | 4,803 |
| Issued bonds | 19,557 | 20,923 | 2,741 | 1,952 | 16,230 |
| Loans and credit facilities | 1,896 | 1,932 | 1,932 | ||
| Financial liabilities – maturity 2021 (DKKm) |
Carrying amount | Total cash flow, including interest |
0-1 year | 1-5 years | > 5 years |
| Financial liabilities – maturity 2020 (DKKm) |
Carrying amount | Total cash flow, including 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 |
The Group is also exposed to foreign currency risks, partly on the translation 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 affects 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 subsidiaries 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 underlying cash flow impact, significant changes in currency rates, especially EUR/DKK, CNY/DKK and CHF/DKK, will result in more fluctuations in reported 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 official Danish fixed exchange-rate policy against the EUR will continue.
The sensitivity analysis of foreign currency translation exposures shows the effect of a 5% change in average exchange rates for the year on profit/loss (EBIT) and the effect 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.
| Unhedged intra-group balances | Currency exposures – sensitivity analysis | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| Main currency exposures (DKKm) |
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 |
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| Loan and credit facilities (DKKm) |
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 |
| Overdraft 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 |
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 previous 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 previous years.
The Group's credit risk mainly relates to trade receivables.
The Group is not dependent on particular customer segments or any specific customers, and all customers are subjected to individual credit assessments 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 factoring. 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 derivative 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 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 receivables 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 creditworthiness with a low risk of loss.
The loss allowance provision for the year is specified below:
| (DKKm) | 2021 | 2020 |
|---|---|---|
| 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%).
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 receivables or other current payables in the balance sheet. Positive and negative fair values are only offset if the Group has a right and an intention to settle several financial instruments net (by means of settlement of differences). 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 effectiveness of recognised financial instruments is assessed on a monthly basis, and any ineffectiveness is recognised in the income statement.
Fair value changes which are classified as and fulfil the criteria for recognition as a fair value hedge are recognised in the income statement together 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 effectively 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.
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.
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 effective interest rate for existing interest rate instruments used as hedges of long-term loans was 0.8% at the reporting date (2020: 0.8%).
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| External hedging instruments (DKKm) |
Currency instruments |
Interest rate instruments |
Total | Currency instruments |
Interest rate instruments |
Total |
| 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) |
| 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 effect | (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 effect 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 |
| Fair value hierarchy by category DSV has no financial instruments measured at fair value |
Financial instruments by category (DKKm) |
2021 Carrying amount |
2020 Carrying amount |
|---|---|---|---|
| based on level 1 input (quoted active market prices) or level 3 input | Financial assets: | ||
| (non-observable market data). | Currency derivatives | - | 50 |
| All financial instruments are measured based on level 2 input (input other | Trade receivables | 36,369 | 19,038 |
| than quoted prices that are observable either directly or indirectly). | Other receivables | 6,404 | 3,007 |
| Derivative financial instruments | Cash and cash equivalents | 8,299 | 4,060 |
| The fair value of currency and interest rate derivatives is determined based on generally accepted valuation methods using available obser |
Financial assets measured at amortised cost |
51,072 | 26,105 |
| vable market data. Calculated fair values are verified against comparable | Financial liabilities: | ||
| external market quotes on a monthly basis. | Interest rate derivatives | 7 | 17 |
| Financial liabilities measured at amortised cost | Currency derivatives | 33 | |
| The carrying value of financial liabilities measured at amortised cost | Issued bonds measured at amortised cost | 19,557 | 7,730 |
| is not considered to differ significantly from fair value. | Loans and credit facilities | 1,896 | 1,089 |
| Trade receivables, trade payables and other receivables | Lease liabilities | 15,288 | 12,278 |
| Receivables and payables pertaining to operating activities and with | Trade payables | 17,040 | 9,926 |
| short churn ratios are considered to have a carrying value equal to fair value. |
Financial liabilities measured at amortised cost |
53,781 | 31,023 |
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).
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.
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 adjustments 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 income or equity.
| Tax for the year (DKKm) | 2021 | 2020 |
|---|---|---|
| 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) |
| Tax rate (%) | 2021 | 2020 |
|---|---|---|
| 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 effect 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% |
| Effective tax rate | 24.5% | 24.3% |
Deferred tax is recognised based on temporary differences between the carrying amount and the tax value of assets and liabilities. No recognition is made of deferred tax on temporary differences 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 differences arose on the date of acquisition without affecting the results or the taxable income. In cases where it is possible to calculate the tax value according to different 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 offsetting deferred tax liabilities within the same legal tax entity and jurisdiction.
Deferred tax assets and tax liabilities are offset if the enterprise has a legally enforceable right to set off 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 effective under current legislation at the reporting date on which the deferred tax is expected to materialise as current tax.
Management applies significant estimates when recognising and measuring deferred tax assets.
Deferred tax assets, including the tax base of tax loss carryforwards are recognised if it is assessed that there will be sufficient future taxable income against which the temporary differences 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.
| in the balance sheet (DKKm) | 2021 | 2020 |
|---|---|---|
| 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 |
| in the balance sheet (DKKm) | 2021 | 2020 |
|---|---|---|
| Temporary differences | (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 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) |
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 Management, auditors and other related parties.
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 obligations are also recognised at fair value and form part of the total consideration 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 valuation methods. Identifiable intangibles are recognised if they are separable 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-controlling 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 recognised 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 effects of cross-period measurement period adjustments are recognised in equity at the beginning of the financial year, and comparative figures are restated.
After the end of the measurement period, goodwill is no longer adjusted. Transaction costs inherent from the acquisition are recognised in the income statement when incurred.
Goodwill and fair value adjustments arising from the acquisition of an acquiree whose functional currency differs 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.
In applying the acquisition method of accounting, estimates are an integral part of assessing fair values of several identifiable assets acquired and liabilities assumed, as observable market prices are typically not available.
Valuation techniques where estimates are applied typically relate to determining 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 property, 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.
On 16 August 2021, DSV acquired the Global Integrated Logistics business (GIL) (from Agility Public Warehousing Company K.S.C.P.). No other material enterprises, non-controlling interests or activities were acquired
or divested in 2021. In 2020, no material enterprises, non-controlling interests or activities were acquired or divested.
The GIL business was a leading global transport and logistics provider with a strong footprint in emerging markets. The business offered a mix of integrated logistics services, including air, ocean and road freight forwarding services, contract logistics and specialised logistics capabilities. GIL operated a flexible, customer-centric and sustainability-driven business 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 efficiency.
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 forwarding 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-growing 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 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:
The transaction is expected to be EPS accretive (diluted and adjusted) in year 2 after completion, and it is DSV's aspiration to lift the operating margin of the combined entity to DSV's existing levels within the respective business areas.
The consideration transferred for Global Integrated Logistics has been made in DSV equity instruments by offering 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 offset 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.
Total transaction costs recognised until 31 December 2021 amount to DKK 86 million (recognised as special items).
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.
The acquisition is estimated to have contributed revenues of around DKK 15,000 million and operating profit before special items of DKK 950 million to the DSV Group results for the period 16 August 2021 to 31 December 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 have been identified and goodwill recognised. Net assets, goodwill and contingent assets and liabilities recognised at the reporting date are to some extent still provisional. Adjustments 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 assets totalling DKK 1,818 million relating to various company- and value added taxes. Indemnification assest have not been excluded from the consideration transferred or opening balance recognition. Had the indemnification assets been excluded, consideration transferred and net assets recognised would have amounted to DKK 27,675 million and DKK 2,475 million instead, whereas acquisitional goodwill would have remained unchanged.
| 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 |
Contingent liabilities recognised are presented within the provisions line item and further described in note 3.8. Goodwill recognised mainly relates to the expertise and knowhow of the acquired workforce and expected 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 left.
Material net assets acquired for which significant estimates have been applied in the fair value assessment have been recognised using the following valuation techniques:
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 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 after 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 customer 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.
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 effect therefore immaterial.
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 effect 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.
DSV's share option schemes are equity-settled, measured at the grant date and recognised in the income statement as staff costs over the vesting period. The offsetting 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 options 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.
DSV has launched incentive share-based payment schemes with the purpose of motivating and retaining key employees throughout the organisation. 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 covering 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 exercise period. In case of a change of control, all outstanding share options will vest. Exercise prices are set based on the quoted market prices leading 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 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 |
Executive Board Key
employees Total
Outstanding share options
¹ A member of the Executive Board has previously received share options in the Director's former capacity as DSV key employee.
Outstanding at 31 December 2021 762,750 8,814,648 9,577,398 730.9
Average exercise price per option
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:
| Executive Board's | 2021 | ||||
|---|---|---|---|---|---|
| remuneration (DKKm) |
Jens Bjørn Andersen |
Jens H. Lund |
Michael Ebbe* |
Total | |
| 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 |
* Michael Ebbe became a member of the Executive Board on 26 October 2021.
| Total | 21.6 | 16.0 | - | 37.6 | |
|---|---|---|---|---|---|
| Share-based payment | 5.2 | 3.8 | - | 9.0 | |
| Pension | 1.2 | 0.9 | - | 2.1 | |
| Fixed salary | 15.2 | 11.3 | - | 26.5 | |
| remuneration (DKKm) |
Jens Bjørn Andersen |
Jens H. Lund |
Michael Ebbe* |
Total | |
| Executive Board's | 2020 |
The aggregate remuneration for the Board of Directors of DSV A/S for 2021 was DKK 7.2 million (2020: DKK 6.9 million).
| Board of Directors' remuneration | ||
|---|---|---|
| (DKK '000) | 2021 | 2020 |
| 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 |
* 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 after closing of the acquisition of GIL.
Non-audit services provided by PwC Denmark amounted to DKK 8 million in 2021 relating to cyber security advisory services, data AI solution advisory 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.
DSV 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 the Executive Board.
No transactions with related parties were made in 2021 other than ordinary remuneration, as described in notes 6.2 and 6.3.
DSV holds ownership interests in 12 associates (2020: seven associates). 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:
| Associated companies transactions | ||
|---|---|---|
| (DKKm) | 2021 | 2020 |
| Sale of services | 163 | 193 |
| Purchase of services | 18 | 19 |
The Group had the following balances with associates at 31 December:
| (DKKm) | 2021 | 2020 |
|---|---|---|
| Receivables | 26 | 29 |
| Payables | 1 | 2 |
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 applies judgements in assessing the existence of contingent 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.
As an international transport service provider, the Group is regularly involved in tax and VAT disputes, legal proceedings or inquiries from competition authorities. Management believes that the cases currently identified 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.
As part of its ordinary operations, DSV has provided bank guarantees to authorities, suppliers, etc.
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 provided were recognised in the balance sheet or described in note 3.6 as operating lease obligations.
At 31 December 2021, property, plant and equipment and other financial 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).
DSV has concluded IT service contracts. Costs related to these contracts are recognised as the services are provided.
Net interest- = bearing debt Net working capital = Invested capital = Adjusted earnings = Net financial expenses = Special items = Adjusted free = cash flow 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 reporting period adjusted for amortisation and impairment of goodwill and customer relationships, costs related to share-based payments and special items. The tax effect of the adjustments has been taken into account Financial income less financial expenses Exceptional items of income or expense which by nature 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 subsidiaries and activities, lease liability repayments, special items and normalisation of working capital in subsidiaries and activities acquired
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 Recommendations. Earnings per share and diluted earnings per share are disclosed in accordance with IAS 33. Environmental, social and governmental key figures and ratios are defined in the DSV Sustainability Report 2021 to which reference is made.
| Gross profit * 100 | Profit attributable to the shareholders of DSV A/S | |||
|---|---|---|---|---|
| Gross margin = |
Revenue | Earnings per share | = | Average number of shares |
| Operating margin = |
Operating profit (EBIT) before special items * 100 Revenue |
Diluted earnings | = | Profit attributable to the shareholders of DSV A/S Average number of shares diluted |
| per share | ||||
| Conversion ratio = |
Operating profit (EBIT) before special items * 100 | Diluted adjusted | = | Adjusted earnings |
| Gross profit | earnings per share | Average number of shares diluted | ||
| Effective tax rate* = |
Tax on profit for the year * 100 | |||
| Profit before tax | Number of shares | = | Total number of shares outstanding excluding treasury | |
| Return on invested = |
Operating profit (EBIT) before special items * 100 | shares at the reporting date | ||
| capital before tax | Average invested capital | Average number | = | Average number of shares outstanding during the re |
| Profit attributable to the shareholders | of shares | porting period | ||
| Return on equity = |
of DSV A/S * 100 | Average number | = | Average number of shares outstanding during the re |
| Average equity excluding non-controlling interests | of shares diluted | porting period including share options, but excluding | ||
| Solvency ratio = |
Equity excluding non-controlling interests * 100 | out-of-the-money options measured relative to the average share price for the period |
||
| Total assets | ||||
| Gearing ratio* = |
Net interest-bearing debt | |||
| Operating profit before amortisation, | ||||
| depreciation (EBITDA) before special items | ||||
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.
| Activity: Air & Sea |
Road | Solutions | Group | |
|---|---|---|---|---|
| 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%
| Company | Country | |
|---|---|---|
| Europe (continued) | ||
| 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% |
| Ownership | Ownership | ||||
|---|---|---|---|---|---|
| share | Activity | Company | Country | share | Activity |
| Europe (continued) | |||||
| 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% |
| Ownership | Ownership | Ownership | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | share | Activity | Company | Country | share | Activity | Company | Country | share | Activity |
| Europe (continued) | Europe (continued) | Europe (continued) | |||||||||
| DSV Air & Sea Germany GmbH | Germany | 100.0% | DSV Real Estate S.p.A. | Italy | 89.3% | DSV Multi-Channel Fulfilment B.V. | Netherlands | 100.0% | |||
| Agility Logistics GmbH | Germany | 100.0% | DSV Air & Sea Italy S.r.l. | Italy | 100.0% | DSV Solutions (Dordrecht) B.V. | Netherlands | 100.0% | |||
| Agility Projects GmbH | Germany | 100.0% | DSV Solutions S.R.L. | Italy | 100.0% | DSV Solutions (Moerdijk) B.V. | Netherlands | 100.0% | |||
| DSV Air & Sea Deutschland GmbH | Germany | 100.0% | DSV Real Estate Novara S.r.l. | Italy | 66.0% | DSV Real Estate Dallas Holding B.V. | Netherlands | 100.0% | |||
| DSV Real Estate Duisburg A/S | DSV Road S.R.L. | Italy | 100.0% | DSV Real Estate Venlo 5 B.V. | Netherlands | 100.0% | |||||
| - German Branch | Germany | 100.0% | UTi Italy SrL | Italy | 100.0% | DSV Real Estate Maastricht B.V. | Netherlands | 100.0% | |||
| DSV Solutions Group GmbH | Germany | 100.0% | UTi Kazakhstan LLP | Kazakhstan | 100.0% | DSV Real Estate Moerdijk B.V. | Netherlands | 100.0% | |||
| DSV Solutions GmbH | Germany | 100.0% | Agility Logistics LLP | Kazakhstan | 100.0% | DSV Moerdijk Project B.V. | Netherlands | 100.0% | |||
| DSV Stuttgart GmbH & Co. KG | Germany | 100.0% | DSV Latvia SIA | Latvia | 100.0% | DSV Road Holding N.V. | Netherlands | 100.0% | |||
| DSV Stuttgart Verwaltung GmbH | Germany | 100.0% | DSV Lithuania UAB | Lithuania | 100.0% | DSV Road B.V. | Netherlands | 100.0% | |||
| Administration & Accounting | DSV Air & Sea S.A. | Luxembourg | 100.0% | DSV ROAD DOOEL Skopje | North Macedonia | 100.0% | |||||
| Service GmbH | Germany | 100.0% | XB Luxembourg Holdings 1 SA | Luxembourg | 100.0% | DSV Air & Sea AS | Norway | 100.0% | |||
| DSV Road GmbH | Germany | 100.0% | XB Luxembourg Holdings 2 SARL | Luxembourg | 100.0% | Panalpina AS | Norway | 100.0% | |||
| DSV HELLAS S.A. | Greece | 100.0% | DSV Lead Logistics B.V. | Netherlands | 100.0% | Agility AS | Norway | 100.0% | |||
| UTi Networks Limited | Guernsey | 100.0% | Agility Logistics International BV | Netherlands | 100.0% | DSV Solutions AS | Norway | 100.0% | |||
| DSV Air & Sea Hungary Kft. | Hungary | 100.0% | GeoLogistics European Holdings B.V. | Netherlands | 100.0% | DSV Road AS | Norway | 100.0% | |||
| Agility Hungary LLC | Hungary | 100.0% | Telmidas AMS B.V. | Netherlands | 100.0% | DSV International Shared | |||||
| DSV Solutions Hungary Kft. | Hungary | 100.0% | TransOceanic Holdings BV | Netherlands | 100.0% | Services Sp. z o.o. | Poland | 100.0% | |||
| DSV Hungaria Kft. | Hungary | 100.0% | DSV Panalpina Finance B.V. | Netherlands | 100.0% | DSV Real Estate Warsaw Sp. z o.o. | Poland | 100.0% | |||
| DSV Air & Sea Limited | Ireland | 100.0% | African Investments BV | Netherlands | 100.0% | DSV Air & Sea Sp. z o.o. | Poland | 100.0% | |||
| Panalpina World Transport (Ireland) Ltd. | Ireland | 100.0% | UTi (Netherlands) Holdings BV | Netherlands | 100.0% | Panalpina Polska Sp. z o.o. | Poland | 100.0% | |||
| Agility Logistics Ltd | Ireland | 100.0% | DSV Air & Sea Nederland B.V. | Netherlands | 100.0% | Agility Logistics Spolka z.o.o | Poland | 100.0% | |||
| LEP Shannon Ltd. | Ireland | 100.0% | DSV Shared Services B.V. | Netherlands | 100.0% | DSV Air & Sea Poland Sp. z o.o. | Poland | 100.0% | |||
| DSV Air & Sea (Ireland) Limited | Ireland | 100.0% | Agility Restart BV | Netherlands | 100.0% | DSV Services Sp. z o.o. | Poland | 100.0% | |||
| DSV Solutions Ltd. | Ireland | 100.0% | Agility BV | Netherlands | 100.0% | DSV Road Sp. z o.o. | Poland | 100.0% | |||
| UTI Inventory Management | Agility Project Logistics BV | Netherlands | 100.0% | DSV Solutions Sp. z o.o. | Poland | 100.0% | |||||
| Solutions Limited | Ireland | 100.0% | Agility Logistics Solutions BV | Netherlands | 100.0% | DSV Group Services Unipessoal, Lda | Portugal | 100.0% | |||
| DSV Road Limited | Ireland | 100.0% | DSV Solutions Holding B.V. | Netherlands | 100.0% | Agility Business Services Europe Ltda | Portugal | 100.0% | |||
| DSV S.p.A. | Italy | 100.0% | DSV Solutions Nederland B.V. | Netherlands | 100.0% | DSV Air & Sea Portugal, LDA | Portugal | 100.0% | |||
| Panalpina Trasporti Mondiali S.p.A. | Italy | 100.0% | IMS Holdings BV | Netherlands | 100.0% | DSV Solutions, Lda. | Portugal | 100.0% | |||
| Agility Logistics S.r.l. | Italy | 100.0% | DSV SGPS, Lda. | Portugal | 100.0% |
| Ownership | Ownership | Ownership | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | share | Activity | Company | Country | share | Activity | Company | Country | share | Activity |
| Europe (continued) | Europe (continued) | Europe (continued) | |||||||||
| Agility Transitarios, Lda | Portugal | 100.0% | Agility AB | Sweden | 100.0% | Agility Logistics Ltd. | United Kingdom | 100.0% | |||
| DSV Transitarios, Lda. | Portugal | 100.0% | DSV Solutions AB | Sweden | 100.0% | Agility Fairs and Events Logistics Ltd. | United Kingdom | 100.0% | |||
| DSV Air & Sea SRL | Romania | 100.0% | DSV Real Estate Rosersberg AB | Sweden | 100.0% | Agility Pension Plan Trustees Ltd. | United Kingdom | 100.0% | |||
| Agility Logistics SRL | Romania | 100.0% | DSV Group AB | Sweden | 100.0% | Agility Management Ltd | |||||
| DSV Solutions S.R.L. | Romania | 100.0% | DSV Road AB | Sweden | 100.0% | - Europe Region Management HQ | United Kingdom | 100.0% | |||
| DSV Air & Sea JSC | Russia | 100.0% | Göinge Frakt EK | Sweden | 100.0% | Agility Management Ltd - IT Bureau | United Kingdom | 100.0% | |||
| DSV Sakhalin, OOO | Russia | 68.0% | DSV Road Property Holding AB | Sweden | 100.0% | DSV Air & Sea 2018 (UK) Limited | United Kingdom | 100.0% | |||
| Geologistics CJSC | Russia | 100.0% | Agility Management AG | Switzerland | 100.0% | Agility Projects Logistics Limited | United Kingdom | 100.0% | |||
| Agility Logistics LLC | Russia | 100.0% | Panalpina Welttransport Holding AG | Switzerland | 100.0% | Agility Logistics Solutions Ltd. | United Kingdom | 100.0% | |||
| Agility Forwarding LLC | Russia | 100.0% | Panalpina Management AG | Switzerland | 100.0% | Agility Management Ltd | United Kingdom | 100.0% | |||
| Agility Services LLC | Russia | 100.0% | Panalpina International AG | Switzerland | 100.0% | DSV Peterborough Real Estate Limited | United Kingdom | 100.0% | |||
| DSV Solutions OOO | Russia | 100.0% | Panalpina Global Employment Services AG | Switzerland | 100.0% | DSV Real Estate Thrapston Limited | United Kingdom | 100.0% | |||
| DSV Road OOO | Russia | 100.0% | Panalpina Air & Ocean AG in liquidation | Switzerland | 100.0% | DSV Road Holding Ltd. | United Kingdom | 100.0% | |||
| OOO DSV Transport | Russia | 100.0% | DSV Air & Sea AG | Switzerland | 100.0% | DSV Commercials Ltd. | United Kingdom | 100.0% | |||
| DSV Road d.o.o. | Serbia | 100.0% | Agility Logistics AG | Switzerland | 100.0% | DSV Road Ltd. | United Kingdom | 100.0% | |||
| DSV Solutions Slovakia s. r. o. | Slovakia | 100.0% | Agility Logistics CIS AG | Switzerland | 100.0% | Global Options Worldwide Express (Ltd) | United Kingdom | 100.0% | |||
| DSV Air & Sea Slovakia s.r.o. | Slovakia | 100.0% | Agility GIL Services AG | Switzerland | 100.0% | DSV Pension Trustees Ltd. | United Kingdom | 100.0% | |||
| Agility Logistics s.r.o. | Slovakia | 100.0% | DSV Logistics S.A. | Switzerland | 100.0% | DSV Solutions Ltd. | United Kingdom | 100.0% | |||
| DSV Slovakia, s.r.o. | Slovakia | 100.0% | DSV Air & Sea A.S. | Turkey | 100.0% | DFDS Transport Ltd. | United Kingdom | 100.0% | |||
| DSV Transport d.o.o. | Slovenia | 100.0% | Agility Lojistik Anonim Sirketi | Turkey | 100.0% | DSV Real Estate Tamworth Ltd. | United Kingdom | 100.0% | |||
| Tacisa Transitaria S.L. | Spain | 100.0% | DSV International Hava | ||||||||
| Agility Spain SA | Spain | 100.0% | ve Deniz Taşimaciliği Ltd.Şirketi | Turkey | 100.0% | North America | |||||
| DSV Air & Sea International, S.L.U. | Spain | 100.0% | DSV Road & Solutions A.S. | Turkey | 100.0% | GeoLogistics Holdings (Bermuda) Limited | Bermuda | 100.0% | |||
| DSV Solutions Spain S.A.U. | Spain | 100.0% | Panalpina World Transport Ltd. | Ukraine | 100.0% | DSV Air & Sea Inc. | Canada | 100.0% | |||
| Servicios Logisticos Integrados SLI, S.A. | Spain | 100.0% | DSV Logistics LLC | Ukraine | 100.0% | Agility Logistics, Ltd. | Canada | 100.0% | |||
| DSV Road Spain S.A.U. | Spain | 100.0% | Agility Logistics LLC | Ukraine | 100.0% | DSV Solutions Inc. | Canada | 100.0% | |||
| DSV Holding Spain S.L. | Spain | 100.0% | Agility Logistics Holdings Ltd. | United Kingdom | 100.0% | DSV Road, Inc. | Canada | 100.0% | |||
| DSV Air & Sea, S.A.U. | Spain | 100.0% | DSV Air & Sea Limited | United Kingdom | 100.0% | DSV Air & Sea, S.A. de C.V. | Mexico | 100.0% | |||
| DSV Air & Sea AB | Sweden | 100.0% | UTi (UK) Holdings Ltd. | United Kingdom | 100.0% | Panalpina Servicios S.A. de C.V. | Mexico | 100.0% | |||
| DSV Air & Sea Nordic AB | Sweden | 100.0% | UTi Worldwide (UK) Ltd. | United Kingdom | 100.0% | TransOceanic Shipping Co. S. de RL de C.V. | Mexico | 100.0% | |||
| Panalpina World Transport Ltd. | United Kingdom | 100.0% | DSV Solutions S.A. de C.V. | Mexico | 100.0% |
| Ownership | Ownership | Ownership | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | share | Activity | Company | Country | share | Activity | Company | Country | share | Activity |
| North America (continued) | South America (continued) | South America (continued) | |||||||||
| DSV Road, S.A. de C.V. | Mexico | 100.0% | Goddard Company Limited | Brit. Virgin Islands | 100.0% | Saint Vincent And | |||||
| DSV 4PL Inc. | United States | 100.0% | UTi International Inc. | Brit. Virgin Islands | 100.0% | Arabella Shipping Ltd | The Grenadines | 100.0% | |||
| Agility Holdings Inc. | United States | 100.0% | UTi Logistics (Proprietary) Limited | Brit. Virgin Islands | 100.0% | DSV Air & Sea Uruguay | |||||
| DSV Air & Sea Holding Inc. | United States | 100.0% | Thomas International Freight | - Servicios Logisticos SA | Uruguay | 100.0% | |||||
| DSV Air & Sea Inc. | United States | 100.0% | Auditors Limited | Brit. Virgin Islands | 100.0% | Panalpina Uruguay Transportes Mundiales S.A. |
Uruguay | 100.0% | |||
| Agility Fairs and Events Logistics LLC | United States | 100.0% | UTi Kazakhstan Investments Ltd | Brit. Virgin Islands | 100.0% | Panalpina Zona Franca S.A. | Uruguay | 100.0% | |||
| American Inland Transport, Inc. | United States | 100.0% | Agility (Asia/Pacific) Limited | Brit. Virgin Islands | 100.0% | TransOceanic Projects Venezuela SRL | Venezuela | 100.0% | |||
| DSV Air & Sea International Holding Inc. | United States | 100.0% | PWC Global Logistics Holdings Ltd | Brit. Virgin Islands | 100.0% | ||||||
| Agility Logistics Corporation | United States | 100.0% | DSV Air & Sea (Latin America) Holding S.A. | Chile | 100.0% | Asia | |||||
| Agility Project Logistics, Inc. | United States | 100.0% | DSV Air & Sea S.A. | Chile | 100.0% | DSV Air & Sea Ltd. | Bangladesh | 100.0% | |||
| Seagull Marine, Inc. | United States | 100.0% | Panalpina Chile Transportes Mundiales Ltda. | Chile | 100.0% | Agility Ltd. | Bangladesh | 100.0% | |||
| Agility Logistics Solutions, Inc. | United States | 100.0% | Agility Logistics Corp. Holding SpA | Chile | 100.0% | UTI Pership (Pvt) Limited | |||||
| Agility Domestic Solutions LLC | United States | 51.0% | Agility Logistics Chile SA | Chile | 51.0% | - Bangladesh Branch (BDT) | Bangladesh | 100.0% | |||
| DSV Solutions, LLC | United States | 100.0% | DSV Air & Sea S.A.S. | Colombia | 100.0% | DSV Air & Sea (Cambodia) Co., Ltd. | Cambodia | 100.0% | |||
| DSV Inventory Management Solutions Inc. | United States | 100.0% | Agility Logistics Colombia S.A.S. | Colombia | 100.0% | Prime Cargo (Cambodia) Co., Ltd. | Cambodia | 100.0% | |||
| DSV Real Estate Dallas Inc. | United States | 100.0% | DSV Solutions S.A.S. | Colombia | 100.0% | Agility Logistics Limited | Cambodia | 100.0% | |||
| Market Industries LLC | United States | 100.0% | DSV Air & Sea S.A. | Costa Rica | 100.0% | DSV Air & Sea Co., Ltd. | Cambodia | 100.0% | |||
| Sammons Transportation, Inc. | United States | 100.0% | Agility Logistics Holdings NV | Curacao | 100.0% | UTi Worldwide Co. Ltd. | |||||
| DSV Road, Inc. | United States | 100.0% | LEP International NV | Curacao | 100.0% | - Cambodia Branch (USD) | Cambodia | 100.0% | |||
| Dominican | DSV Air & Sea Co., Ltd. | China | 100.0% | ||||||||
| South America | DSV AIR & SEA DOMINICANA, S.R.L. | Republic | 100.0% | DSV Air & Sea Co., Ltd. (South East China) | China | 100.0% | |||||
| DSV-AIR&SEA S.A. | Ecuador | 100.0% | Prime Cargo Shanghai Ltd. | China | 100.0% | ||||||
| UTi Logistics Argentina S.A. | Argentina | 100.0% | DSV Air & Sea, S.A. de C.V. | El Salvador | 100.0% | DSV Air & Sea Co., Ltd. (China) | China | 100.0% | |||
| Panalpina Transportes Mundiales S.A. | Argentina | 100.0% | DSV Air & Sea PA Inc. | Panama | 100.0% | Baisui United Logistics (Shanghai) Co. Ltd. | China | 100.0% | |||
| DSV Solutions Brasil Serviços de Logística Ltda. |
Brazil | 100.0% | Panalpina SEM, S.A. | Panama | 100.0% | Agility Logistics (Shanghai) Limited | China | 100.0% | |||
| DSV Air & Sea Brasil Ltda. | Brazil | 100.0% | Panalpina S.A. | Panama | 100.0% | Agility Fairs & Events Logistics (Shanghai) Co. Ltd. |
China | 100.0% | |||
| Agility do Brasil Logística Internacional S.A. | Brazil | 100.0% | Almacenadora Mercantil S.A. | Panama | 100.0% | Qingdao Agility Consultancy | |||||
| TransOceanic Projects do Brasil | DSV Air & Sea S.A. | Peru | 100.0% | Services Limited | China | 100.0% | |||||
| Servicos de Cargas Ltda. | Brazil | 100.0% | Agility Logistics Peru S.A. | Peru | 100.0% | DSV Logistics Co., Ltd. | China | 100.0% | |||
| UTi Worldwide Inc. | Brit. Virgin Islands | 100.0% | DSV Air & Sea (PR) Inc. | Puerto Rico | 100.0% | Panalpina World Transport (PRC) Ltd. | China | 100.0% |
| Ownership | Ownership | Ownership | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | share | Activity | Company | Country | share | Activity | Company | Country | share | Activity |
| Asia (continued) | Asia (continued) | Asia (continued) | |||||||||
| Agility Warehouse (Shanghai) Co. Ltd. | China | 100.0% | DSV Air & Sea Co., Ltd. | Japan | 100.0% | Agility Holding Company, Inc. | Philippines | 100.0% | |||
| DSV Air & Sea Ltd. | Hong Kong | 100.0% | DSV Solutions Co., Ltd. | Japan | 100.0% | Agility Logistics Holding, Inc. | Philippines | 100.0% | |||
| Pantainer (H.K.) Ltd. | Hong Kong | 100.0% | DSV Air & Sea Ltd. | Korea | 100.0% | Agility International Logistics, Inc. | Philippines | 100.0% | |||
| Prime Cargo (H.K.) Ltd. | Hong Kong | 100.0% | Agility Ltd. | Korea | 100.0% | LEP Int'l NV - Philippines | Philippines | 100.0% | |||
| Agility Logistics Limited | Hong Kong | 100.0% | LEP Int'l NV - Korea | Korea | 100.0% | UTi (Global Logistics) Inc. | Philippines | 100.0% | |||
| Agility Logistics Limited | DSV Air & Sea International Ltd. | Korea | 100.0% | DSV SHARED SERVICES MANILA (ROHQ) | Philippines | 100.0% | |||||
| - Asia Pacific Regional Management | Hong Kong | 100.0% | DSV Air and Sea Limited | Macao | 100.0% | Panalpina World Transport (Philippines) Inc. | Philippines | 100.0% | |||
| Agility Fairs & Events Logistics Limited | Hong Kong | 100.0% | DSV Air & Sea Sdn. Bhd. | Malaysia | 100.0% | Agility Solutions, Inc. | Philippines | 100.0% | |||
| ECT Transport Limited | Hong Kong | 100.0% | Panalpina Customs Services (M) SDN BHD | Malaysia | 100.0% | Agility Logistics Distribution, Inc. | Philippines | 100.0% | |||
| LEP Int'l NV - Hong Kong | Hong Kong | 100.0% | Litvest Corporation Sdn Bhd | Malaysia | 100.0% | DSV Lead Logistics Pte. Ltd. | Singapore | 100.0% | |||
| DSV Solutions Limited | Hong Kong | 100.0% | Agility Logistics Sdn Bhd | Malaysia | 100.0% | Agility Logistics Holdings Pte Ltd | Singapore | 100.0% | |||
| DSV Air & Sea (HK) Ltd. | Hong Kong | 100.0% | GOCT Logistics Sdn Bhd | Malaysia | 100.0% | Agility Logistics Holdings (S) Pte. Ltd. | Singapore | 100.0% | |||
| Panalpina World Transport Ltd. | Hong Kong | 100.0% | DSV Shared Services Asia Sdn Bhd | Malaysia | 100.0% | DSV Air & Sea Pte. Ltd. | Singapore | 100.0% | |||
| Panalpina China Ltd. | Hong Kong | 100.0% | Logik Pengurusan Sdn Bhd | Malaysia | 100.0% | Agility International Logistics Pte. Ltd. | Singapore | 100.0% | |||
| GIL Shared Services Private Limited | India | 100.0% | LEP Int'l NV - Malaysia | Malaysia | 100.0% | Agility Fairs & Events Logistics Pte. Ltd. | Singapore | 100.0% | |||
| DSV Air & Sea Pvt. Ltd. | India | 100.0% | DSV Logistics Sdn. Bhd. | Malaysia | 100.0% | Agility Fairs & Events Logistics Pte. Ltd. | |||||
| DSV Air & Sea International | DSV SOLUTIONS SDN. BHD. | Malaysia | 100.0% | - Fairs & Events | Singapore | 100.0% | |||||
| Private Limited | India | 100.0% | Panalpina Transport (Malaysia) Sdn. Bhd. | Malaysia | 100.0% | Agility Shipping Pte. Ltd. | Singapore | 100.0% | |||
| Agility Logistics Private Limited | India | 100.0% | Agility Project Logistics Pte. Ltd. | Singapore | 100.0% | ||||||
| LEP Int'l NV - India | India | 100.0% | UTi Inventory Management Solutions Sdn Bhd |
Malaysia | 100.0% | Agility Logistics Solutions Pte Ltd | Singapore | 100.0% | |||
| DSV Coload & Clearance Pvt. Ltd. | India | 100.0% | DSV Air & Sea (Myanmar) Limited | Myanmar | 100.0% | China Baisui Logistics Pte Ltd | Singapore | 100.0% | |||
| DSV Solutions Private Limited | India | 100.0% | DSV Air & Sea Ltd. | Myanmar | 100.0% | Agility Logistics Services Pte Ltd | Singapore | 100.0% | |||
| PT. DSV Transport Indonesia | Indonesia | 92.7% | DSV Air and Sea Pakistan | ECT Transport Pte. Ltd. | Singapore | 100.0% | |||||
| PT Agility | Indonesia | 100.0% | (SMC-Private) Limited | Pakistan | 100.0% | LEP Int'l NV - Singapore | Singapore | 100.0% | |||
| PT Agility International | Indonesia | 100.0% | Agility Logistics (Private) Limited | Pakistan | 100.0% | ABX LOGISTICS Singapore PTE LTD | Singapore | 100.0% | |||
| PT Synergy Indonesia | Indonesia | 100.0% | Papua New | DSV Solutions Pte Ltd. | Singapore | 100.0% | |||||
| PT Sarana Prima Optima | Indonesia | 100.0% | Agility Limited | Guinea | 100.0% | DSV Air & Sea Singapore Pte. Ltd. | Singapore | 100.0% | |||
| LEP Int'l NV - Indonesia | Indonesia | 100.0% | Panalpina Global Business Services (GBS) | Inventory Solutions (Singapore) Pte. Ltd | Singapore | 100.0% | |||||
| DSV Air & Sea Japan GK | Japan | 100.0% | - Philippines | Philippines | 100.0% | ||||||
| Agility Ltd. | Japan | 100.0% | DSV International Shared Services Inc. | Philippines | 100.0% | UTi Pership (Pvt) Limited | Sri Lanka | 51.0% | |||
| LEP Int'l NV - Japan | Japan | 100.0% | DSV Air & Sea Inc. | Philippines | 100.0% | DSV Pership (Private) Limited | Sri Lanka | 40.0% | |||
| DSV Air & Sea Co., Ltd. | Taiwan | 100.0% |
| Ownership | Ownership | Ownership | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | share | Activity | Company | Country | share | Activity | Company | Country | share | Activity |
| Asia (continued) | Middle East (continued) | Middle East (continued) | |||||||||
| Trans-Link Exhibition Services Co. Ltd. | Taiwan | 50.0% | Agility Bahrain B.S.C.C. | Bahrain | 100.0% | DSV Air & Sea Co. W.L.L. | Kuwait | 49.0% | |||
| Agility Limited | Taiwan | 100.0% | Panalpina Georgia LLC | Georgia | 100.0% | Agility Transport Co. W.L.L. | Kuwait | 100.0% | |||
| LEP Int'l NV - Taiwan | Taiwan | 100.0% | Al-Alb Co. for General | Muroona Logistics Solution Co. for | |||||||
| UTi Holding Co., Ltd. | Taiwan | 100.0% | Transportation (PLLC) | Iraq | 100.0% | General Trading of Equipments, Supplier | |||||
| DSV Air & Sea (Taiwan) Ltd. | Taiwan | 100.0% | Agility Kurdistan Company for | for Construction and Real Estate WLL | Kuwait | 100.0% | |||||
| DSV Solutions Co., Ltd. | Taiwan | 100.0% | Administration of Warehouses and Facilitate Storage Process Limited |
Iraq | 67.5% | Agility GIL for Warehousing and Third Party inventory Management S.P.C |
Kuwait | 100.0% | |||
| Panalpina Asia-Pacific Services (Thailand) Ltd. |
Thailand | 100.0% | The Warehousing Company for Shipping, | Agility Logistics Cargo Transport Co. WLL | Kuwait | 100.0% | |||||
| Discharging and Custom Clearance LLC | Iraq | 100.0% | Agility Freight Forwarding (Lebanon) SARL | Lebanon | 100.0% | ||||||
| Supreme Eliga Co. Ltd. Agility Co. Ltd. |
Thailand Thailand |
100.0% 99.5% |
Shebil Company For Goods & Petroleum Products Transportation Ltd |
Iraq | 100.0% | PWC Trading and contracting Lebanon SAL (Holding) |
Lebanon | 100.0% | |||
| LEP Int'l NV - Thailand | Thailand | 100.0% | Panalpina Jebel Ali Ltd. - Erbil Branch | Iraq | 100.0% | PWC Lebanon (Holding) SAL | Lebanon | 100.0% | |||
| DSV Solutions Ltd. | Thailand | 100.0% | DSV Air & Sea Ltd. | Israel | 100.0% | Agility Logistics Lebanon SAL | Lebanon | 100.0% | |||
| DSV Holding (Thailand) Co., Ltd. | Thailand | 100.0% | DSV Marine Insurance Agency Ltd. | Israel | 100.0% | PWC investments (Lebanon) SARL | Lebanon | 100.0% | |||
| Panalpina World Transport | Hermes Exhibition & Projects Limited | Israel | 100.0% | DSV Air and Sea LLC | Oman | 70.0% | |||||
| (Thailand) Ltd. | Thailand | 100.0% | DSV - E-COMMERCE LTD. | Israel | 100.0% | Global Logistics (Oman) LLC | Oman | 50.0% | |||
| DSV Air & Sea Ltd. | Thailand | 100.0% | DSV Solutions Ltd | Israel | 100.0% | Panalpina Qatar WLL | Qatar | 49.0% | |||
| Panalpina World Transport (Vietnam) Co. Ltd. |
Viet Nam | 99.0% | U.T.I.-Inventory Management Solutions Limited partnership |
Israel | 100.0% | DSV Panalpina Marine Shipping W.L.L. | Qatar | 100.0% | |||
| DSV Solutions Co., Ltd | Viet Nam | 100.0% | UTI IMS Ltd. | Israel | 100.0% | Panalpina World Transport | |||||
| Agility Logistics Vietnam Company Ltd | Viet Nam | 100.0% | Global Options Worldwide Express (Ltd) | Israel | 90.0% | (Saudi Arabia) Ltd. | Saudi Arabia | 100.0% | |||
| Agility Ltd | Viet Nam | 71.0% | DSV Air & Sea Jordan | Jordan | 100.0% | Agility Company LLC | Saudi Arabia | 100.0% | |||
| DSV Air & Sea Vietnam Limited | Viet Nam | 100.0% | Public warehousing Company -Jordan PSC | Jordan | 100.0% | GIL INTERNATIONAL HOLDINGS I LIMITED |
United Arab Emirates |
100.0% | |||
| Inventory Management Solutions Vietnam Limited |
Viet Nam | 100.0% | Al-Mutakamelah Lekhadmat Al -Takhlees Ltd / East Jordan for clearance |
Jordan | 100.0% | GIL INTERNATIONAL HOLDINGS II LIMITED |
United Arab Emirates |
100.0% | |||
| Middle East | Public Warehousing Company for Storage and Distribution Services |
Jordan | 100.0% | GIL INTERNATIONAL HOLDINGS III LIMITED |
United Arab Emirates |
100.0% | |||||
| Agility Logistics Limited | Afghanistan | 100.0% | Public warehousing Company | United Arab | |||||||
| Panalpina Central Asia EC | -Jordan PSC - Aqaba Branch | Jordan | 100.0% | DSV Air & Sea (LLC) | Emirates | 100.0% | |||||
| - Azerbaijan Branch | Azerbaijan | 100.0% | Agility GIL for Company Business | United Arab | |||||||
| Panalpina Azerbaijan LLC | Azerbaijan | 100.0% | Management Co. W.L.L | Kuwait | 100.0% | DSV Solutions DWC-LLC | Emirates | 100.0% | |||
| DSV W.L.L. | Bahrain | 100.0% | Global Logistics for General Trading and Contracting Co. WLL |
Kuwait | 100.0% | Panalpina Jebel Ali Ltd. | United Arab Emirates |
100.0% | |||
| Panalpina Central Asia EC | Bahrain | 100.0% |
Tanzania Limited Tanzania 100.0%
| Ownership | Ownership | Ownership | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Company | Country | share | Activity | Company | Country | share | Activity | Company | Country | share | Activity |
| Middle East (continued) | Africa | Africa (continued) | |||||||||
| United Arab | Agility Maghreb Sarl | Algeria | 49.0% | Saima Nigeria Ltd. | Nigeria | 40.0% | |||||
| DSV Gulf Customs Broker LLC | Emirates | 49.0% | Agility Logistics SARL | Algeria | 100.0% | Nationwide Clearing & Forwarding Ltd. | Nigeria | 36.6% | |||
| United Arab | Frans Maas Algerie S.a.r.l. | Algeria | 100.0% | DSV Freight International Limited | Nigeria | 100.0% | |||||
| DSV Air and Sea DWC-LLC DSV Air and Sea Middle East DWC-LLC |
Emirates United Arab Emirates |
100.0% 100.0% |
Panalpina Transportes Mundiais Navegãçao e Trânsitos S.A.R.L. |
Angola | 49.0% | Agility Freight Forwarding and Transport International Ltd |
Nigeria | 70.0% | |||
| Global Integrated Logistics Lda | Angola | 70.0% | DSV Air & Sea Ltd. | Rwanda | 100.0% | ||||||
| Agility (Abu Dhabi) PJSC | United Arab Emirates |
49.0% | DSV Air & Sea (PTY) Limited | Botswana | 100.0% | DSV Air and Sea (Proprietary) Limited | South Africa | 100.0% | |||
| United Arab | Panalpina Transports Mondiaux | DSV South Africa (Pty) Ltd. | South Africa | 75.0% | |||||||
| Agility Logistics (L.L.C.) | Emirates | 100.0% | Cameroun S.A.R.L. | Cameroon | 90.0% | DSV Shared Services (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Global Logistics FZE | United Arab | DSV-UTI Egypt Ltd. | Egypt | 100.0% | UTi Logistics (Proprietary) Limited | ||||||
| - Control Tower - MEA Regional Office | Emirates | 100.0% | Panalpina World Transport Egypt LLC | Egypt | 100.0% | - SC OCS Division | South Africa | 100.0% | |||
| Agility GIL Middle East and Africa FZE |
United Arab Emirates |
100.0% | Agility Egypt for Shipping and Freight | Egypt | 100.0% | DSV AFRICA HOLDING (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Logistics Transport | United Arab | Agility Logistics Egypt SAE | Egypt | 100.0% | DSV Skyservices (Pty) Ltd | South Africa | 100.0% | ||||
| Shipping Services LLC | Emirates | 99.0% | Global Options Worldwide Express Investments (Pty) Ltd |
Eswatini | 100.0% | Scorpion Share Block (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Sport & Recreational Ticketing LLC |
United Arab Emirates |
99.0% | Panalpina Transports | Marine Link (Pty) Ltd. DSV Real Estate Johannesburg (Pty) Ltd. |
South Africa South Africa |
100.0% 100.0% |
|||||
| United Arab | Mondiaux Gabon S.A. | Gabon | 89.8% | Firefly Investments 337 Properties | |||||||
| Agility Global Logistics FZE | Emirates | 100.0% | DSV Air & Sea Limited | Ghana | 100.0% | Proprietary Limited | South Africa | 100.0% | |||
| DSV Air & Sea Limited | Kenya | 100.0% | Linkit lnvestments (Pty) Ltd. | South Africa | 80.0% | ||||||
| Oceania | Panalpina Kenya Ltd. | Kenya | 100.0% | DSV Empowerment Trust | South Africa | 100.0% | |||||
| DSV Air & Sea Pty. Ltd. | Australia | 100.0% | DSV Air & Sea Limited | Malawi | 100.0% | Agility South Africa (Pty) Ltd | South Africa | 100.0% | |||
| DSV Solutions Pty. Ltd. | Australia | 100.0% | Globeflight Worldwide Express Pty Ltd | Malawi | 50.0% | DSV Healthcare (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Logistics Holdings Pty Ltd | Australia | 100.0% | GIL Africa Holdings Ltd | Mauritius | 100.0% | DSV Solutions (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Logistics Pty Ltd | Australia | 100.0% | Panalpina Morocco S.A.R.L. | Morocco | 100.0% | DSV Assembly Services (Pty) Ltd. | South Africa | 65.3% | |||
| Blockpack Pty Ltd | Australia | 100.0% | Agility SARLAU | Morocco | 100.0% | DSV Mounties (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Fairs & Events Logistics Pty Ltd | Australia | 100.0% | DSV Transport Int'l S.A | Morocco | 100.0% | DSV Road (Pty) Ltd. | South Africa | 100.0% | |||
| Agility Project Logistics Pty Ltd | Australia | 100.0% | Terminal Handling Company | Morocco | 100.0% | Globeflight Worldwide Express | |||||
| Agility Shipping Pty Ltd | Australia | 100.0% | DSV Air & Sea Limitada | Mozambique | 100.0% | (SA) Pty Ltd | South Africa | 100.0% | |||
| DSV Air & Sea Limited | New Zealand | 100.0% | Agility Logistics LDA | Mozambique | 100.0% | Mercury Couriers (Pty) Ltd | South Africa | 100.0% | |||
| Agility Limited | New Zealand | 100.0% | Agility Global Integrated Logistics Lda | Mozambique | 100.0% | DSV Air & Sea Limited | Tanzania | 100.0% | |||
| Globeflight Worldwide Express (Pty) Ltd | Namibia | 100.0% | Panalpina World Transport |
| Ownership | |||
|---|---|---|---|
| Company | Country | share | Activity |
| Africa (continued) | |||
| 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% | |
| Swift 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% | |
| United Arab | |||
| Polymer Logistics Investments LLC | Emirates | 36.5% | |
| Key Logistics, Inc. | United States | 49.0% | |
The Board of Directors and Executive Board have today considered and adopted the Annual Report of DSV A/S for the financial year 1 January to 31 December 2021.
The Annual Report has been prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standard Board ('IASB') and in accordance with IFRS as adopted by the EU and further requirements in the Danish Financial Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the financial position at 31 December 2021 of the Group and the Parent Company and of the results of the Group and Parent Company operations and cash flows for 2021.
In our opinion, the annual report of DSV A/S for the financial year 1 January to 31 December 2021 with the file name DSV-2021-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.
In our opinion, Management's commentary includes a true and fair account of the development in the operations and financial circumstances of the Group and the Parent Company, of the results for the year and of the financial position of the Group and the Parent Company as well as a description of the most significant risks and elements of uncertainty facing the Group and the Parent Company.
We recommend that the Annual Report be adopted at the Annual General Meeting.
Executive Board: Jens Bjørn Andersen CEO Michael Ebbe CFO Jens H. Lund COO and Vice CEO Board of Directors: Thomas Plenborg Chairman Marie-Louise Aamund Jørgen Møller Deputy Chairman Beat Walti Annette Sadolin Niels Smedegaard Birgit W. Nørgaard Tarek Sultan Al-Essa
In our opinion, the Consolidated Financial Statements and the Parent Company Financial Statements give a true and fair view of the Group's and the Parent Company's financial position at 31 December 2021 and of the results of the Group's and the Parent Company's operations and cash flows for the financial year 1 January to 31 December 2021 in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB') and in accordance with IFRS as adopted by the EU and further requirements in the Danish Financial Statements Act.
Our opinion is consistent with our Auditor's Long-form Report to the Audit Committee and the Board of Directors.
The Consolidated Financial Statements and Parent Company Financial Statements of DSV A/S for the financial year 1 January to 31 December 2021 comprise income statement and statement of comprehensive income, cash flow statement, balance sheet, statement of changes in equity and notes, including summary of significant accounting policies for the Group as well as for the Parent Company. Collectively referred to as the "Financial Statements".
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided.
We were first appointed auditors of DSV A/S on 9 March 2017 for the financial year 2017. We have been reappointed annually by shareholder resolution for a total period of uninterrupted engagement of five years including the financial year 2021.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2021. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Agility Global Integrated Logistics - Purchase price allocation
Agility Global Integrated Logistics ("GIL") was acquired with accounting effect as at 16 August 2021. When acquiring GIL, DSV prepared a purchase price allocation ('PPA') for the acquisition, resulting in assets and liabilities being separately recognised and valued in the opening balance. When preparing the PPA, Management used the Group's valuation methodologies. In order to determine the fair value of the separately identified assets and liabilities in a business combination, the valuation methodologies require input based on assumptions about the future and applied discounted cash flow forecasts, including regarding customer churn rates and WACC. The significant judgements and estimates, including methods and data applied and assumptions made by Management, involved in the PPA and opening balance mainly relate to assessing the fair value of the acquired customer relations and provisions.
We focused on this area because of the significance of the amounts in the PPA and because the PPA requires significant judgements and estimates by Management.
Reference is made to note 6.1 in the Consolidated Financial Statements.
Our audit procedures included assessing the appropriateness of the accounting policies for business combinations applied by Management and assessing compliance with applicable financial reporting standards.
We involved our internal specialists in assessing the valuation methodologies and WACC used by management and the fair valuation of the acquired assets and liabilities. We challenged the significant assumptions used to determine the fair value of the acquired assets and liabilities in the business combination, including the fair value of the acquired customer relations and provisions.
Finally, we assessed the adequacy of disclosures relating to the business combination.
The Group's revenue consists primarily of services, i.e. shipments of goods between destinations, which by nature is rendered over a period of time.
We focused on this area, because at year-end, material contract assets and accrued cost of services exist which involve significant accounting estimates and which are complex by nature, i.e. accrual of income (contract assets) and related costs (accrued cost of services), including methods and data applied and assumptions made by Management. The process of accruing for services rendered around the balance sheet date is, therefore, complex and dependent on relevant IT controls in certain operational IT systems. Moreover in the Air & Sea division, an inherent risk exists regarding estimates for recognising revenue in the right period at yearend due to the services being rendered over a lengthier period of time.
In addition, we focused on this area because of the significance of revenue and as revenue comprises a substantial number of transactions, including with different characteristics depending on which business segment the revenue relates to.
Reference is made to notes 2.2 and 3.4 in the Consolidated Financial Statements.
Our audit procedures included considering the appropriateness of the accounting policies for revenue recognition applied by Management and assessing compliance with applicable financial reporting standards. We tested relevant internal controls, including IT controls, concerning the timing of revenue recognition and evaluated whether these were designed in line with the Group's accounting policies and were operating effectively.
For revenue, contract assets and accrued cost of services, we examined reports concerning services in progress and challenged the assumptions made by Management in this regard.
Moreover, we selected a sample of revenue transactions during the year and traced these to underlying evidence to ensure accuracy and existence.
In addition, we applied data analysis in our testing of revenue transactions in order to identify and assess transactions outside the ordinary transaction flow.
The Group operates in many territories and is, consequently, subject to local laws and cross-border transfer pricing legislation, which complicates the Group's tax matters, and which gives rise to provisions for income tax positions.
The Group also carries significant deferred tax assets on the balance sheet. The utilisation of tax assets are, inherently, uncertain, as they are dependent on the financial development of business activities in certain countries and regions.
We focused on this area because the valuation of deferred tax assets and provisions for income tax positions, including from business combinations, is complex and dependent on Management estimates, including Management's applied model, data and assumptions.
Reference is made to note 5.2 to the Consolidated Financial Statement.
Our audit procedures included considering the appropriateness of the Group's accounting policies and valuation models within the tax accounting area and assessing compliance with applicable financial reporting standards.
We also assessed Management's process for identifying and assessing complex income tax transactions as well as deferred tax assets that might not be recoverable.
We tested provisions made for income tax positions. As part of this, we reviewed correspondence with tax authorities and discussed methods and data applied as well as assumptions made by Management. In doing so, we used our internal corporate tax specialists.
Moreover, we tested Management's assessment of the recoverability of the carrying value of deferred tax assets arising from temporary differences and tax loss carryforwards on the basis of internal forecasts of
future taxable income, and evaluated the assumptions made by Management in this connection.
Management is responsible for Management's Commentary.
Our opinion on the Financial Statements does not cover Management's Commentary, and we do not express any form of assurance conclusion thereon.In connection with our audit of the Financial Statements, our responsibility is to read Management's Commentary and, in doing so, consider whether Management's Commentary is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Moreover, we considered whether Management's Commentary includes the disclosures required by the Danish Financial Statements Act. Based on the work we have performed, in our view, Management's Commentary is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management's Commentary.
Management is responsible for the preparation of consolidated financial statements and parent company financial statements that give a true and fair view in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB') and in accordance with IFRS as adopted by the EU and further requirements in the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management
either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
Conclude on the appropriateness of Management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
As part of our audit of the Financial Statements, we performed procedures to express an opinion on whether the annual report of DSV A/S for the financial year 1 January to 31 December 2021 with the filename DSV-2021-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML format and iXBRL tagging of the Consolidated Financial Statements.
Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility includes:
Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due to fraud or error.
In our opinion, the annual report of DSV A/S for the financial year 1 January to 31 December 2021 with the file name DSV-2021-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.
Statsautoriseret Revisionspartnerselskab CVR no 3377 1231
State Authorised Public Accountant Mne23331
Kim Tromholt State Authorised Public Accountant Mne33251
| Income statement | 100 |
|---|---|
| Statement of comprehensive income | 100 |
| Cash flow statement . | 101 |
| Balance sheet . | 102 |
| Statement of changes in equity | 103 |
| 1. | Accounting policies | 104 |
|---|---|---|
| 2. | Changes in accounting policies . | 104 |
| 3. | Management judgements and estimates | 104 |
| 4. | New accounting regulations | 104 |
| 5. | Revenue | 104 |
|---|---|---|
| 6. | Fees to auditors appointed at the Annual General Meeting | 104 |
| 7. | Staff costs | 104 |
| 8. | Special items . | 104 |
| 9. | Financial income | 105 |
| 10. | Financial expenses . | 105 |
| 11. | Income tax | 105 |
| 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 |
| 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 |
| (DKKm) Note |
2021 | 2020 |
|---|---|---|
| Revenue 5 |
2,417 | 2,290 |
| Gross profit | 2,417 | 2,290 |
| Other external expenses 6 |
1,138 | 964 |
| Staff 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 |
| (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.
| 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 |
| 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.
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 recoverable amount, the investment is written down to this lower value.
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.
All amendments to the International Financial Reporting Standards (IFRS) effective for the financial year 2021 have been implemented as basis for preparing the Parent Company financial statements and notes to the statements.
None of the implementations has had any material impact on the statements or notes presented.
For the preparation of the Annual Report of DSV A/S, Management makes various accounting judgements that affect the reported amounts and disclosures in the statements and in the notes to the financial statements. These judgements are based on professional judgement, historical data and other factors available to Management. By their nature, judgements 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 effect 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:
Management assesses annually whether there is an indication of impairment of investments in subsidiaries. If so, the investments will be tested for impairment in the same way as Group goodwill, involving various estimates on future cashflows, growth, discount rates, etc. On 31 December 2021, no impairment indicators were identified.
The IASB has issued a number of new standards and amendments not yet in effect or adopted by the EU and therefore not relevant for the preparation of the 2021 Parent Company financial statements. These standards and amendments are expected to be implemented when they take effect.
None of the new standards or amendments issued are currently expected to have any significant impact on the Parent Company financial statements when implemented.
| Total revenue | 2,417 | 2,290 |
|---|---|---|
| Intra-group charges | 2,417 | 2,290 |
| (DKKm) | 2021 | 2020 |
| (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 |
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 staff costs | 1,095 | 995 |
| Average number of full-time employees | 507 | 437 |
| Total special items, costs | 251 | 235 |
|---|---|---|
| Transaction costs relating to acquisition of Global Integrated Logistics |
86 | |
| Restructuring and integration costs | 165 | 235 |
| (DKKm) | 2021 | 2020 |
| (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 |
Interest income includes interest on financial assets measured at amortised cost of DKK 154 million (2020: DKK 156 million).
| (DKKm) | 2021 | 2020 |
|---|---|---|
| Interest expenses | 145 | 209 |
| Interest expenses for Group entities | 67 | 19 |
| Currency translation, net | - | 637 |
| Total financial expenses | 212 | 865 |
Interest expenses include interest on financial liabilities measured at amortised cost of DKK 145 million (2020: DKK 209 million).
| Total tax for the year | 145 | (96) |
|---|---|---|
| Tax on other comprehensive income | 8 | 1 |
| Tax on profit for the year | 137 | (97) |
| (DKKm) | 2021 | 2020 |
| Total tax on profit for the year | 137 | (97) |
|---|---|---|
| Tax adjustment relating to previous years | 28 | |
| Deferred tax | (78) | (109) |
| Current tax | 187 | 12 |
| (DKKm) | 2021 | 2020 |
| Effective tax rate | 2.3% | (9.7%) |
|---|---|---|
| Tax adjustment relating to previous years | 0.5% | 0.0% |
| Non-deductible expenses/non-taxable income | (20.2%) | (31.7%) |
| Tax effect of: | ||
| Calculated tax on profit for the year before tax | 22.0% | 22.0% |
| (DKKm) | 2021 | 2020 |
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| (DKKm) | Software | Software in progress |
Total | Software | Software in progress |
Total |
| 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 impairment 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 impairment at 31 December | 517 | - | 517 | 554 | - | 554 |
| Carrying amount at 31 December | 391 | 266 | 657 | 450 | 166 | 616 |
| Carrying amount at 31 December | 216 | 146 |
|---|---|---|
| Total amortisation and impairment at 31 December |
244 | 204 |
| Disposals | (36) | (73) |
| Amortisation and impairment for the year | 76 | 75 |
| Total amortisation and impairment at 1 January | 204 | 202 |
| Total cost at 31 December | 460 | 350 |
| Disposals | (36) | (73) |
| Additions for the year | 146 | 65 |
| Cost at 1 January | 350 | 358 |
| (DKKm) | 2021 | 2020 |
| Current receivables from Group entities and other receivables at 31 December |
18,463 | 20,501 |
|---|---|---|
| Other receivables etc. | 325 | 324 |
| Receivables from Group entities | 18,138 | 20,177 |
| (DKKm) | 2021 | 2020 |
| Equity reserves are specified below. | 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 |
For a description of equity reserves, please see note 4.1 to the consolidated financial statements.
| (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 |
Bank loans are subject to standard trade covenants. All financial ratio covenants were observed during the year. The weighted average interest rate was 0.7% (2020: 1.1%).
| (DKKm) | 2021 | 2020 |
|---|---|---|
| Payables to Group entities Other payables |
18,364 731 |
21,552 581 |
| 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) |
| 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 |
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.
DSV A/S owns the following subsidiaries, all of which are included in the consolidated financial statements:
| Ownership 2021 |
Ownership 2020 |
Registered office |
Share capital (DKKm) |
|
|---|---|---|---|---|
| DSV Road Holding A/S |
100% | 100% | Hedehusene, Denmark |
100 |
| DSV Air & Sea Holding A/S |
100% | 100% | Hedehusene, Denmark |
50 |
| DSV Solutions Holding A/S |
100% | 100% | Hedehusene, Denmark |
100 |
| DSV Insurance A/S | 100% | 100% | Hedehusene, Denmark |
25 |
| DSV Group Services A/S |
100% | 100% | Hedehusene, Denmark |
5 |
| DSV FS A/S | 100% | 100% | Hedehusene, Denmark |
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 |
Total | 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 |
Total | 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.
The weighted average effective 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 recognised 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.
Financial risks of the Parent Company are handled within the risk management 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, including estimated interest payments. No amounts have been discounted, for which reason they cannot necessarily be reconciled to the related items of the balance sheet.
| External hedging instruments (DKKm) |
Contractual value | Maturity | Fair value | nised in income statement |
recognised in OCI |
|---|---|---|---|---|---|
| Currency instruments | 26,137 | 2022 | (26) | (27) | 1 |
| Interest rate instruments | 744 | 2022 | (7) | - | (7) |
| Total | 26,881 | (33) | (27) | (6) | |
| Total | 7,097 | 9 | - | (19) | ||||
|---|---|---|---|---|---|---|---|---|
| Interest rate instruments | 744 | 2021-2022 | (17) | - | (17) | |||
| Currency instruments | 6,353 | 2021 | 26 | - | (2) | |||
| (DKKm) | Contractual value | Maturity | Fair value | Of which recog nised in income statement |
Of which recognised in OCI |
|||
| 2020 |
2021
Of which recognised in income statement
| 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 |
Of which recognised in OCI
| 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 |
The fair value of financial assets and liabilities does not differ 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 observable data.
DSV A/S and the other Danish Group entities are registered jointly for VAT purposes and are jointly and severally liable for the VAT liabilities.
DSV A/S is assessed jointly for Danish tax purposes with the other domestic Group entities. DSV A/S is the administration company of the joint taxation 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.
DSV A/S has provided guarantees for subsidiaries' outstanding balances with banks and liabilities to leasing companies, suppliers and public authorities, etc. in the amount of DKK 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.
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.
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.
No intra-group transactions were made in 2021 other than as stated in the income statement and notes.
Hovedgaden 630 2640 Hedehusene Denmark
Tel. +45 4320 3040 E-mail: [email protected] 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
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