AI assistant
DSV — Annual Report 2021
Feb 9, 2022
Preview isn't available for this file type.
Download source fileUntitled DSV Annual Report 20 21
Keeping supply chains flowing in a world of change
DSV A/S
Hovedgaden 630
2640 Hedehusene
Denmark
CVR no. 58 23 35 28
1 January – 31 December 2021
Tel. +45 43 20 30 40
Email. [email protected]
CVR no. 58 23 35 28
DSV is one of the world’s leading freight forwarders. We help companies connect with the world and ensure smooth and ecient storage and transport of their goods. By road, sea and air. We keep supply chains flowing – from shipper to customer doorstep – and help to deliver sustainable growth. By giving our customers the logistics services they require. By running a profitable operation that delivers return on investment for our shareholders. And by giving our people an inspiring place to work and equal oppor- tunities to develop their talent. Combining the latest technologies and the talent of our strong global workforce, we make supply chains leaner and greener. That is how we will help to shape a sustainable future.
Welcome to our Annual Report 2021.
Delivering sustainable growth
Hovedgaden 630
2640 Hedehusene
Denmark
Annual Report for the year ending 31 December 2021 (45th financial year). Published 9 February 2022.
Contents
Management’s commentary
Introduction
Letter from our CEO................................ 4
Highlights 2021.................................... 6
GIL - our latest acquisition .......................... 8
Five-year overview................................. 9
Strategy and financial targets
Our corporate purpose and strategy ................. 10
Sustainable logistics for a fast-changing world ........ 12
Our business model................................ 14
Industry and market trends ......................... 15
A responsive approach to technology and digitalisation .. 17
Outlook for 2022 and long-term financial targets ..... 18
Capital structure and allocation ..................... 19
Page 8
In August, we acquired Agility's Global Integrated Logistics business
Financial and non-financial performance
Financial review .................................. 20
Non-financial review...............................23
Air & Sea ......................................... 25
Road ............................................ 28
Solutions ......................................... 30
Corporate governance and shareholder information
Risk management ................................. 32
Corporate governance ............................. 38
Board of Directors................................. 41
Shareholder information............................ 42
Other information
Quarterly financial highlights ........................ 44
Financial statements
Consolidated financial statements
Income statement................................. 46
Statement of comprehensive income ................ 46
Cash flow statement............................... 47
Balance sheet..................................... 48
Statement of changes in equity ..................... 49
Notes to the consolidated financial statements........ 50
Definition of key figures and ratios................... 85
Group company overview .......................... 86
Statements
Management’s statement .......................... 94
Independent Auditor’s reports ...................... 95
Parent Company financial statements
Parent Company financial statements ................ 99
Page 13
In 2021, we launched a new industry-leading Green Logistics product
Page 18
Read about our revised long-term financial targets
Introduction
To say 2021 was a turbulent year would be an understatement. The continuing repercussions of COVID-19 dominated and aected consumer behaviour, supply chains, logistics – and our working lives. In 2021, we also took another step forward in our continued growth strategy with the acquisition of Global Integrated Logistics (GIL) from Agility. In the middle of all this change and extraordinary disruption, we performed well – continuing to help customers keep their supply chains flowing.
Letter from our CEO
Keeping supply chains flowing in a world of change
We understand what our customers are going through, and we will keep finding solutions.
Strong financial results
2021 was a successful year for the DSV Group. Our revenue amounted to DKK 182.3 billion (+58.6%), gross profit was DKK 37.6 billion (+32.7%) and operating profit before special items was DKK 16.2 billion (+71.3%). Our adjusted free cash flow was DKK 8,659 million. We dis- tributed DKK 18,761 million to shareholders in 2021 via share buybacks and dividends. And the DSV share price rose 49.8%.
A perfect storm
In the past year, we saw several unprecedented factors con- spiring across global supply chains. Beyond the continuous pandemic lockdowns and restrictions, a surging demand for goods strained transport capacity, equipment, infrastructure and labour across the supply chain. Bottlenecks persist and have led to record-high freight rates in 2021. These disruptions continue to impact the global economy, raising dicult questions for the logistics industry and exposing global supply chain vulnerabilities. There is no quick fix when it comes to solving these challen- ges. It will call for concerted collaboration between public and private sectors. We understand what our customers are going through, and we will keep finding solutions, optimising opera- tions and mitigating all the risks we can to keep supply chains running smoothly.
DSV is in a good position to ride out the storm. We have solid relationships with carriers. We have strong freight forwarding capabilities and skilled people who take immediate action when needed. We have worked to develop our digital pro- duction platforms and ensure more transparent supply chains. We have modern, automated warehouses that can handle the larger inventories that come with increasing demand for e-fulfilment or increasing stock reserves.
Growing through acquisition
In 2021, we completed the DKK 30 billion acquisition of GIL. This was a major milestone in our growth journey. Through this acquisition, we expanded our geographical reach – particularly in Asia and the Middle East – and improved our network and services. Today, we are in a stronger position than ever to support customers and grow our business with confidence. Our teams are now bringing GIL into the DSV family, con soli- dating operations, IT, administration and logistics. While we integrate we make sure day-to-day business and service levels stay high for our customers, and we strive to keep momen- tum and progress in our other key strategic projects within IT and business development. Our GIL integration plan is on track, and we expect to com- plete it in Q3 2022.
Trading on nature’s terms
Today and tomorrow, sustainability should underpin every as- pect of our business. The supply chains we support have to significantly decarbonise if they are to keep flowing sustain- ably, and DSV must play an active role in helping our industry shape a genuinely sustainable future. We have begun the long journey to achieve our science- based targets for cutting CO 2 emissions. In 2021, we were proud to receive the Danish Climate Strategy Award in recog- nition of our ambitious goals and the actions we have already taken to reduce our scope 1, 2 and 3 emissions. We use this recognition as motivation to handle the significant tasks ahead of us – tasks that we can only solve in close co- operation with our customers, suppliers, authorities and other important stakeholders. Cooperation, innovation and regulation are all needed to get us all the way to the target. Last year, we launched a set of services under our new Green Logistics banner. The services range from CO 2 reporting and supply chain optimisation to emission compensation and sus- tainable fuel solutions. We have designed each solution to cut our customers’ supply chain carbon footprints and at the same time reduce our own scope 3 emissions.
Always a people-centred business
Finally, I want to acknowledge the huge contribution of our employees and thank them for their resolute eorts in very dicult circumstances. 2021 taught us many valuable lessons; most importantly, it reminded us that freight forwarding will always be a people-centred business – supported by digital tools and a flexible approach to how we operate. Whatever market challenges persist next year, we are optimistic about the future – and we are committed to keep supply chains flowing in this world of change.
Jens Bjørn Andersen
Group CEO, DSV A/S
Highlights 2021
Group results
| Metric | 2021 | 2020 | Change (%) |
|---|---|---|---|
| Revenue | DKK 182.3 bn | DKK 115.0 bn | +58.6% |
| Gross profit | DKK 37.6 bn | DKK 28.3 bn | +32.7% |
| Operating profit before SPI | DKK 16.2 bn | DKK 9.5 bn | +71.3% |
| Adjusted free cash flow | DKK 8,659 m | DKK 8,746 m | -1.0% |
| ROIC before tax | 19.6% | 14.3% | +5.3 pp |
| Share price increase (end-of-year) | 49.8% | N/A | N/A |
| Dividend and buybacks paid | DKK 18,761 m | N/A | N/A |
EBIT before special items
In 2021, DSV's operating profit before special items was DKK 16,223 million, up DKK 6,703 million from 2020. The development was driven by a 32.7% increase in gross profit, strong cost man- agement and our acquisition of Global Integrated Logistics (GIL).
Adjusted free cash flow
For 2021, adjusted free cash flow was DKK 8,659 million compared to DKK 8,746 million last year. Adjusted free cash flow was impacted positively by higher EBIT before special items but negatively by higher net working capital.
ROIC before tax
The return on invested capital was 19.6% in 2021 compared to 14.3% for 2020. This increase can mainly be attributed to higher operating profit before special items.# DSV Annual Report 2021 Introduction
Financial Highlights and Outlook
| Metric | 2021 Actual | 2020 Actual | 2021 Outlook |
|---|---|---|---|
| Gross profit (DKK million) | 37,615 | 28,534 | |
| Gross profit growth (%) | +32.7% | ||
| EBIT before special items (DKK million) | 16,223 | 9,520 | 15,250 – 16,000 |
| EBIT before special items growth (%) | +71.3% |
Division Performance (2021 Actual):
- Air & Sea:
- Gross profit: DKK 12,768 million
- Growth in gross profit: 42.3%
- Drivers: Higher activity, extraordinary market conditions, record-high conversion ratio, GIL acquisition.
- Road:
- EBIT before special items: DKK 1,857 million
- Drivers: 15.1% increase in gross profit, improved conversion ratio, strong network and market position.
- Solutions:
- EBIT before special items: DKK 1,775 million
- Growth in gross profit: 23.9%
- Drivers: Growth across most industries, record-high warehouse utilisation, cost optimisation, GIL acquisition (approx. 25% extra capacity).
Regional Performance (2021 Actual)
- EMEA:
- Gross profit: DKK 21,739 million (58% of total)
- EBIT before special items: DKK 7,707 million (47% of total)
- APAC:
- Gross profit: DKK 7,675 million (20% of total)
- EBIT before special items: DKK 4,473 million (28% of total)
- AMERICAS:
- Gross profit: DKK 8,199 million (22% of total)
- EBIT before special items: DKK 4,042 million (25% of total)
Global Footprint and DSV & Agility's Global Integrated Logistics (GIL) Acquisition
DSV's global footprint saw significant growth:
* +51.3%
* +32.6%
* +83.5%
The acquisition of GIL strengthens DSV's ability to keep supply chains flowing, particularly in fast-growing markets like the Middle East and APAC. It enhances competitiveness in the Solutions and Air & Sea divisions.
As a combined entity, DSV is one of the top three global freight forwarders with over 75,000 employees. GIL adds over 1.4 million m² of warehousing capacity, primarily in the Middle East and APAC, significantly boosting the Solutions division.
The legal and operational integration of GIL is in progress, aiming for completion in Q3 2022, while maintaining high customer service levels.
Financial Impact of GIL Acquisition:
- Estimated annual revenue increase: > 20%
- Expected annual contribution to combined operating profit (EBIT) before special items (fully integrated in 2023): ~ DKK 3,000 million.
DSV and Agility's Global Integrated Logistics (GIL) Business:
GIL was a leading global transport and logistics provider with a strong presence in emerging markets and expertise in air and sea freight.
| Entity | Employees | Revenue (DKKm) | Air freight (tonnes) | Sea freight (TEU) | Logistics centres (m²) |
|---|---|---|---|---|---|
| DSV | 58,000 | 165,000 | 1,300,000 | 2,300,000 | 6,000,000 |
| GIL | 17,000 | 35,000 | 300,000 | 600,000 | 1,400,000 |
Five-Year Overview (2017-2021)
Ratios
| Financial Ratios (%) | 2021 | 2020 | 2019 | 2018* | 2017* |
|---|---|---|---|---|---|
| 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
| Share Ratios | 2021 | 2020 | 2019 | 2018* | 2017* |
|---|---|---|---|---|---|
| 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 |
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.
Financials (DKKm)
| Results (DKKm) | 2021 | 2020 | 2019 | 2018* | 2017* |
|---|---|---|---|---|---|
| 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 (EBITDA) before amortisation, depreciation 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)
| 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|
| 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)
| 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|
| DSV A/S shareholders’ share of equity | 74,103 | 47,385 | 49,430 | 14,561 | 14,835 |
| Non-controlling interests | 175 | (88) | (111) | (29) | (26) |
| Balance sheet total | 161,395 | 96,250 | 97,557 | 38,812 | 38,388 |
| Net working capital | 8,031 | 2,701 | 3,125 | 1,767 | 1,410 |
| Net interest-bearing debt (NIBD) | 29,245 | 18,189 | 18,355 | 5,831 | 5,575 |
| Invested capital | 101,231 | 64,285 | 68,595 | 20,381 | 20,391 |
| Gross investment in property, plant and equipment | 1,180 | 1,121 | 1,000 | 720 | 620 |
ESG Data
| ESG data | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| CO₂e (g/tonne-km) - Air transport | 694.4 | 704.0 | 718.2 | 728.0 | 751.0 |
| CO₂e (g/tonne-km) - Sea transport | 6.1 | 6.2 | 6.4 | 7.0 | 7.3 |
| CO₂e (g/tonne-km) - Road transport** | 92.4 | 92.8 | 93.2 | 96.5 | 97.4 |
| Lost Time Injury Frequency Rate | 4.5 | 6.7 | 5.0 | 4.6 | 4.2 |
| Lost workdays due to lost time injury | 61.0 | 78.8 | 97.5 | 98.0 | 81.2 |
| Gender diversity (%) (female/male) | 38/62 | 38/62 | 39/61 | 38/62 | 39/61 |
| Employee turnover ratio (adjusted for synergies) | 21.9 | 20.5 | 21.1 | 20.1 | 16.4 |
| Employees (FTE) | 77,958 | 56,621 | 61,216 | 47,394 | 45,636 |
** *Comparative figures have been restated, as our method for calculation and data transparency has improved. For a definition of financial key figures and ratios, please refer to page 85. For definition of ESG data, please refer to Sustainability Report.
Our Corporate Purpose and Strategy
DSV's strategy is built upon four focus areas: People, Customers, Operational excellence, and Sustainable growth.
Our Corporate Purpose
Keeping supply chains flowing in a world of change.
The COVID-19 pandemic highlighted the critical importance of DSV's role in enabling global trade and facilitating growth for customers, employees, shareholders, and societies. This commitment was evident in the distribution of PPE and vaccines during the pandemic, as well as in everyday transport services.
In 2021, DSV defined its corporate purpose to articulate this vital function. DSV is dedicated to helping customers navigate complex and volatile supply chains, providing greener and more efficient transport solutions through advanced planning, technology, and innovation.
Sustainable Growth
DSV aims to foster growth for its customers, employees, shareholders, and the communities in which it operates, thereby creating sustainable growth for DSV.
- Customer Growth: DSV supports customer development through reliable, cost-effective services with minimal environmental impact. Its expertise and industry-specific solutions cater to sectors such as Automotive, Industrial, Chemicals, Retail & Fashion, Healthcare, Technology, and Renewable Energy. In 2021, DSV received the CX Network's award for Best Customer Centric Culture, recognizing its successful integration of the Customer Success Programme.
- Employee Growth: Employees are the core of DSV's business. With over 75,000 employees worldwide, DSV prioritizes a safe, healthy, and motivating work environment where employees can grow and develop their talents. The company provides the necessary tools, training, and conditions for employees to perform at their best. The skills and knowledge of DSV's experienced teams were crucial in maintaining supply chains during periods of disruption. Attracting and retaining talented employees is vital for the company's success.# DSV Annual Report 2021
Strategy and financial targets
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.
Delivering operational excellence
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 decisions based on sound business acumen, supported by solid data.
As one global company, we aim to benefit from scale where we can. We work together as one global network, and we have centralised selected activities. This is reflected in our international shared service centres and group functions which among others include Property, Insurance and Procurement.
Purpose and strategy working together
For each of our main business areas, we select strategic 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.
In 2021, some of the biggest projects were:
* M&A – mainly acquiring and integrating GIL
* the Road Way Forward project – a new digital production system and standardised workflows to support our European Road network
* further developing our digital infrastructure and workflows – including our advanced integration and hybrid computing platforms
* our digital customer interaction capabilities
* developing our physical infrastructure and workflows – developing large and efficient warehouses, warehouse automation, terminals and offices
* developing and launching Green Logistics services
We will continue to focus on these areas in 2022. We describe key projects for each of our divisions in the divisional reviews on pages 25-31. And you can read about our 2026 revised financial targets on page 18.
We believe in giving back to the communities we operate in, while finding new ways of cutting our operational environmental footprint.
Strategy and financial targets
Sustainable logistics for a fast-changing world
ESG strategy anchored at the top
Our ESG work is anchored at the top. In close cooperation with the Executive Board, the Board of Directors is responsible for setting the direction, shaping the strategy and determining our targets for each area. In this work, we are guided by our commitment to fulfilling and promoting the UN 2030 Sustainable Development Goals (SDGs) and the United Nations Global Compact's Ten Principles. As the world’s third-largest transport and logistics company, DSV strives to hold a strong and responsible position on environmental, social and governance (ESG) issues. These duties include helping combat climate change by moving the industry towards more sustainable practices.
Environment
We have a responsibility to drive our own operations and the industry towards minimising the environmental impact of transport and logistics services.
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.
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.
* Community engagement. We engage with and support the communities we do business in, and we use our expertise to support people in need.
Our ESG strategy
* Employee engagement
* Diversity and gender equality
* Community engagement
* Health and safety
* Human rights
* Labour rights
* CO 2 emissions
* Waste management and recycling
* Product and service innovation
* Anti-corruption
* Conflict of interest
* Anti-competitive behaviour
* Supplier engagement and conduct
* Data privacy
* Taxes
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.
Social and governance factors
While the environment is at the top of the global ESG agenda – for good reasons – we maintain our focus on social and governance factors as reflected in our ESG strategy. In short, we aim to do business with integrity and provide safe and healthy workplaces, where our colleagues all over the world are respected and given equal opportunities. We apply the same policies globally, and when we acquire companies, we ensure that the DSV standards are implemented across the organisation.
ESG value from acquisitions
Our M&A strategy does not only contribute to DSV’s 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.
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.
Developing partnerships
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 journey towards greener logistics
The transport and logistics industry is the world’s third-largest source of greenhouse gas emissions. So the whole industry must work together and play an active role in reducing its CO 2 footprint.We are working on a number of 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.
Managing the risk from climate change
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. As part of our strategic management, we regularly engage in dialogue with our key stakeholders.
13 DSV Annual Report 2021
Strategy and financial targets
Our business model
| Transport | Subcontracted From shipper | Our key resources |
| Freight forwarding services | Shipment booking | People |
| Logistics and distribution | — Pick-up | — IT systems |
| Cargo consolidation | — Warehouse | — Industry know-how |
| Cross-dock terminal | — Documentation & customs clearance | — Standardised global workflows |
| Warehousing | — Insurance | — Carrier relations |
| Labelling, configuration, testing | — Deconsolidation | — Global network with local presence |
| E-commerce fulfilment | — Distribution | |
| — Carbon emission reports | ||
| — Supply chain innovation | ||
| — 4PL | ||
| To consignee | The right resources to keep supply chains moving |
Our business model is asset light. This means we can quickly scale activities to match changes in market demand. We can also pick the best suppliers for any service – depending on factors like reliability, available capacity, transit time, sustainability factors and price. We believe we have a unique combination of skilled people with industry know-how, advanced IT systems, modern warehouses and terminals, strong carrier relationships and our global network across 90 countries. This blend helps us meet the needs of our customers across the world. DSV is a global business – but always close to the local market. Working with container carriers, airlines, road hauliers and railway operators, we can move goods to wherever they are needed. And being one of the largest buyers globally means we combine keen pricing and strong, long-standing relationships with carriers.
Adding value to complex supply chains
As well as transport, our customers buy a full range of freight forwarding, logistics and distribution services from us. These include digital tools for purchase order management, booking and track-and-trace, green 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. DSV is one of the world’s biggest global freight forwarders. We ship freight by land, sea and air – and provide contract logistics too. From shipper to consignee, our business model keeps the entire supply chain flowing.
14 DSV Annual Report 2021
Strategy and financial targets
Source: Journal of Commerce and DSV estimates.
Top five global freight forwarders and market share based on 2020 revenue.
| Company | Market share |
|---|---|
| DHL Logistics | 60% |
| Kuehne + Nagel | 20% |
| DSV+GIL | 6% |
| DB Schenker Logistics | 4% |
| Nippon Express | 4% |
| Others | 3% |
| Top 6-20 | 3% |
| Others, estimated |
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 brick-and-mortar to e-commerce, sending activity in fulfilment centres and last-mile deliveries skyward. Logistics companies who have adapted to these disruptions will be best placed to succeed in this market. At DSV, we are responding by 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.
Increasing digitisation of logistics
Over the past two decades, the speed of introducing digital technologies has increased – also in logistics. This is helping providers respond faster to changing customer needs and a rapidly 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.
Industry and market trends
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.
A fragmented competitive landscape
We are one of the top three global freight forwarders in our industry, with a market share of roughly 4%. Together, the top 20 forwarders have an estimated global market share of 30-40%. The rest of the market 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.
The impact of the pandemic on global supply chains and e-commerce
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.
15 DSV Annual Report 2021
Strategy and financial targets
Digital start-ups
In recent years, a number of purely digital forwarders have entered the industry. These organisations tend to 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.
The strategy of asset owners
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.
More centred on ESG and sustainability
Sustainability has become a critical topic across all industries, and ours is no exception.As a major contributor to carbon emissions, the transport and logistics industry must develop more environmentally sustainable business practices. It has to drive change from within – supported by stakeholders across the supply chains and in line with government regulation. As well as environmental standards, social, labour and governance frameworks are increasingly central to informing strategic decisions and in 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.
Understanding the pace of market growth
There were relieving signs of global economic recovery in 2021, with markets bouncing back from the impact of COVID-19. The transport and logistics industry is still 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.
Politics and trade flows
Global and local trade flows are impacted by politics. Across the globe, we continue to see new examples of protectionism, changes to 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.
Logistics capabilities
Digital capabilities
Logistics versus digital capabilities
| Digital | Other forwarders | DSV |
|---|---|---|
| Established | 16 | DSV Annual Report 2021 |
Strategy and financial targets
Conversational artificial intelligence
Adaptable IT for a flexible future
To fulfill our strategy and react quickly to our dynamic markets, we have a strong, scalable IT infrastructure. We take a hybrid computing approach blending on-premises and cloud-based infrastructure across operational systems, customer integrations and engagement services. During 2021, we introduced a new advanced integration platform which enables us to connect our production systems with the cloud, ensuring that data can be delivered on time and accurately, supporting complex workflows and expanding data volumes. We plan on developing a range of digitalisation tools on this foundation. The first was a booking transparency tool that went live in 2021. This allows us to systematically measure booking data quality and work with customers to enhance it.
Providing supply chain visibility
Digitalisation is changing the way we interact with customers and 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.
A responsive approach to technology and digitalisation
In 2021, our digital freight forwarding platform, myDSV, took more than 300,000 bookings a month. This platform is now part of our critical 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.
Automated, efficient warehousing
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.
Staying abreast of the latest trends
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.
DSV technology trend radar – selected examples
- Adopting:
- Self-driving vehicles
- 5G network
- Drones
- Visibility platform/ live tracking
- Testing:
- Micro mobility
- Alternative fuels
- Machine learning
- Hybrid computing platform
- Tracking/ Assessing:
- Exo skeleton
- Digital twins
- Automated storage system
Technological developments have always driven change in our industry. At DSV, we monitor the development and adapt new technologies to ensure that we – and our stakeholders – benefit from new developments.
17 DSV Annual Report 2021 Strategy and financial targets
Outlook for 2022 and long-term financial targets
For 2022, we expect EBIT before special items of DKK 18,000-20,000 million. We have updated our long-term targets following the Global Integrated Logistics (GIL) acquisition. We now expect to reach a conversion ratio of 45% for the Group in 2026.
| Outlook 2022 (DKKm) | 2021 actual | Outlook 2022 |
|---|---|---|
| Operating profit (EBIT) before special items | 16,223 | 18,000-20,000 |
| Effective tax rate | 24.5% | 23% |
| 2026 targets (%) | 2021 actual | Previous 2025 targets | Revised 2026 targets |
|---|---|---|---|
| DSV Group | |||
| Conversion ratio | 43.1 | >40.0 | >45.0 |
| ROIC (before tax) | 19.6 | >20.0 | >20.0 |
| Divisional targets for conversion ratio | |||
| Air & Sea | 53.7 | >47.5 | >50.0 |
| Road | 26.2 | >30.0 | >30.0 |
| Solutions | 26.7 | >30.0 | >30.0 |
Assumptions for 2022 financial outlook
OECD and IMF project global economic growth around 4% in 2022, and we expect growth rates in the transport markets to be in line with underlying economic growth. Our ambition is to gain market share in all the markets in which we operate. However, the ongoing integration of GIL may limit our ability to outperform the market in Air & Sea, especially in the first half of 2022. The outlook is based on the assumption that the current 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. Full-year 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.
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.
Long-term financial targets
Following the acquisition of GIL in 2021, our financial targets have been adjusted for the DSV Group and for the Air & Sea division. We expect to achieve the revised targets by 2026. The targets are based on the assumption of stable global 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 back-office 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.# Strategy and financial targets
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:
Forward-looking statements
Capital structure
The aim of DSV’s target capital structure is to ensure:
* sufficient financial flexibility to meet our strategic objectives; and
* a robust financial structure to maximise the return for our shareholders.
Our target financial gearing ratio is below 2.0 x EBITDA before special items. The ratio may exceed this level following significant acquisitions.
Capital allocation policy
Our free cash flow allocation prioritisation remain unchanged:
1. Repayment of net interest-bearing debt in periods when the financial gearing ratio is above target range.
2. Value-adding investments in the form of acquisitions or development of the existing business.
3. Distribution to the shareholders through share buybacks and dividends.
Value-adding investments
DSV pursues an active acquisition strategy. Our acquisitions have created substantial value for shareholders over the years and have also contributed to consolidating an otherwise fragmented industry. As a Group, we have a track record of successful company integrations – the most recent chapter in this story being the acquisition of Agility’s Global Integrated Logistics business in 2021. We have been able to create increasing return on invested capital (ROIC) over time. However, large acquisitions have initially diluted ROIC before tax.
Capital structure
Group Management continuously monitors whether the capital structure is in line with the targets, and excess capital is 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.
Dividend policy
DSV aims to ensure an annual dividend pay-out ratio of approximately 10-15% of our net profit. Proposed dividend for 2021 amounts to DKK 5.50 per share (2020: 4.00 per share). The proposed dividend for 2021 is equivalent to 11.7% of net profit and 11.1% of adjusted earnings.
Capital structure and allocation
Distribution of capital (DKKm)
■ Dividends ■ Share buyback
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| 342 | 1,559 | 380 | 4,888 | 5,031 | |
| 17,841 | 4,161 | ||||
| 423 | 588 | ||||
| 920 |
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 |
Our 2021 EBIT before special items was DKK 16,223 million – up 71.3% and above the expected level of DKK 15,250-16,000 million.
Financial review
Strong performance
2021 saw extraordinary market conditions for global logistics, especially for air and sea freight. This was a result of strong demand and pandemic-driven congestion and imbalances in worldwide supply chains. Despite these unique challenges, our skilled freight forwarders, scale and strong carrier relationships helped us deliver transport solutions for customers as well as strong results and growth for our company this year. In line with our M&A strategy, we acquired Global Integrated Logistics (GIL) in 2021. The integration is going to plan, and we expect to complete it in Q3 2022. Adjusted free cash flow for the year was DKK 8,659 million (2020: DKK 8,746 million). During 2021, our net working capital increased, as receivables from customers were 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.
Integration of GIL
The acquisition of GIL was completed on 16 August 2021. From that date, we included GIL in our consolidated financial statements, and it had a material impact on the profit and loss statement, cash flow and balance sheet statements. Between 16 August and 31 December 2021, GIL contributed around DKK 15,000 million to revenue and DKK 950 million to EBIT before special items for the Group. More details about GIL are available in note 6.1 on page 78.
* Growth including M&A and in constant currencies.
Michael Ebbe
CFO
Financial and non-financial performance
Results
Revenue
Our Air & Sea division grew revenue by 81.6%. Apart from the impact of acquisitions, the increase was driven by record-high rates for both air and sea freight and organic growth. Compared to 2020, our Road and Solutions divisions also grew revenue. This was driven by volume recovery after the pandemic in 2020, market share gains and the impact of acquisitions.
| 2021 | 2020 | Growth* | |
|---|---|---|---|
| Air & Sea | 131,901 | 73,689 | 81.6% |
| Road | 35,416 | 30,395 | 16.2% |
| Solutions | 18,734 | 14,608 | 28.4% |
| Group and eliminations | (3,745) | (2,760) | n.a. |
| Total revenue | 182,306 | 115,932 | 58.6% |
* Growth including M&A and in constant currencies.
Gross profit
Gross profit was up 32.7% in 2021. The Air & Sea increase was mainly driven by volume growth and higher gross profit yields, partly due to 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.
| 2021 | 2020 | Growth* | |
|---|---|---|---|
| Air & Sea | 23,769 | 16,909 | 42.3% |
| Road | 7,095 | 6,138 | 15.1% |
| Solutions | 6,653 | 5,369 | 23.9% |
| Group and eliminations | 98 | 118 | n.a. |
| Total gross profit | 37,615 | 28,534 | 32.7% |
* Growth including M&A and in constant currencies.
EBIT before special items
For the Group, EBIT before special items rose 71.3%, driven by strong gross profit growth, continued focus on cost management and the 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.
| 2021 | 2020 | Growth* | |
|---|---|---|---|
| Air & Sea | 12,768 | 7,026 | 83.5% |
| Road | 1,857 | 1,390 | 32.6% |
| Solutions | 1,775 | 1,161 | 51.3% |
| Group and eliminations | (177) | (57) | n.a. |
| Total EBIT before special items | 16,223 | 9,520 | 71.3% |
* Growth including M&A and in constant currencies.
Total 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.
Revenue (DKKm)
Gross profit (DKKm)
EBIT before special items (DKKm)
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
Gross profit
Operating margin
Conversion ratio
EBIT
| 2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
Cash flow statement
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).
Capital structure
On 31 December 2021, DSV shareholders’ share of equity was DKK 74,103 million (2020: DKK 47,385 million). This rise was mainly driven by the capital increase and share transfer to Agility in connection with the GIL transaction, where we increased share capital by nominally DKK 16 million. 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.
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
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.
NIBD and gearing ratio
5 years | 4,803 | 3,499 | | **Total undiscounted lease liabilities at 31 December** | **18,330** | **13,920** | | Current/non-current classification (discounted): | | | | Current | 3,440 | 2,850 | | Non-current | 11,848| 9,428 | ### Lease eects recognised in profit or loss and cash flow (DKKm) | | 2020 | 2021 | | :--------------------- | :---- | :---- | | **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 | Right-of-use assets classified as land and buildings mainly relate to leases of warehouses, terminals and oce buildings, whereas assets recognised as other plant and operating equipment mainly relate to leases of trailers, trucks, company cars, forklis, IT hardware and other oce equipment. Land and building leases normally have a lease term of up to ten years, whereas leases of other plant and operating equipment normally have a lease term of up to five years. Land and buildings may include extension options with the intention of securing flexibility in the lease – however, any leasing period beyond the normal ten years expected at the initiation of the lease will normally be reflected in the contractual lease term agreed. Analysis of lease liabilities showing the remaining contractual maturities is provided in the following table: 63 DSV Annual Report 2021 Consolidated financial statements 2021 3.7 Pension obligations ### Accounting policies Pension obligations relating to defined contribution plans, under which the Group pays regular pension contributions to independent pension funds, are recognised in the income statement for the period in which they are earned. Contributions payable are recognised in the balance sheet under other current liabilities. In regards to defined benefit plans, an actuarial valuation of the present value of future benefits payable under the plan is made once a year. The present value is calculated based on various assumptions, including the future development in wage/salary levels, interest rates, inflation and mor- tality. The present value is only calculated for benefits to which the employ- ees have become entitled during their employment with the Group. The actuarial calculation of the present value less the fair value of assets under the plan is recognised in the balance sheet under pension obligations. Pen- sion costs for the year are recognised in the income statement based on actuarial estimates and the financial outlook at the beginning of the year. Dierences between the calculated development in pension plan assets and liabilities and the realised values are recognised in other comprehen- sive income as actuarial gains or losses. Changes in benefits payable for employees’ past services to the com- pany result in an adjustment of the actuarial calculation of the present value, which is classified as past service costs. Past service costs are charged to the income statement immediately if the employees have al- ready earned the right to the adjusted benefits. Otherwise, they will be recognised in the income statement over the period in which the em- ployees earn the right to the adjusted benefits. ### Management judgements and estimates In determining pension obligations, management makes use of external and independent actuaries as basis for the estimates applied in measuring the obligations. The actuarial assumptions used in the valuations vary from country to country owing to national, economic and social conditions. ### Pension obligations Of these obligations, DKK 1,032 million relates to unfunded pension ob- ligations (2020: DKK 863 million) and negative DKK 124 million relates to partly funded obligations (2020: DKK 356 million). The latter is pri- marily due to the Swiss plans being overfunded. ### Total pension costs for the year In 2021, net costs of DKK 658 million relating to the Group’s pension plans were recognised in the income statement (2020: DKK 621 million) and break down as follows: #### Pension cost 2021 (DKKm) | | Defined contribution plans | Defined benefit plans | Tota l | | :----------------- | :------------------------- | :-------------------- | :----- | | Sta costs | 567 | 74 | 641 | | Financial expenses | - | 17 | 17 | | **Total costs recognised** | **567** | **91** | **658** | #### Pension cost 2020 (DKKm) | | Defined contribution plans | Defined benefit plans | Tota l | | :----------------- | :------------------------- | :-------------------- | :----- | | Sta costs | 578 | 27 | 605 | | Financial expenses | - | 16 | 16 | | **Total costs recognised** | **578** | **43** | **621** | #### Defined benefit pension obligations (DKKm) | | 2020 | 2021 | | :--------------------------------------------------------------- | :---- | :---- | | Obligations at 1 January | 4,218 | 4,878 | | Current service cost | 100 | 131 | | Past service cost from plan amendments, curtailments and gains/losses on settlements | (26) | (104) | | Calculated interest on obligations | 56 | 43 | | Actuarial gains/losses arising from changes in financial assumptions | (186) | 22 | | Actuarial gains/losses arising from changes in demographic assumptions | (63) | 21 | | Actuarial gains/losses arising from experience adjustments | (8) | (9) | | Payments from the plan | (1,211)| (552) | | Additions from business combinations | 2,667 | - | | Currency translation | 146 | (212) | | **Obligations at 31 December** | **5,693** | **4,218** | #### Expected maturity of pension obligations (DKKm) | | 2020 | 2021 | | :--------------------- | :---- | :---- | | 0-1 year | 206 | 208 | | 1-5 years | 747 | 589 | | > 5 years | 4,740 | 3,421 | | **Total obligations recognised** | **5,693** | **4,218** | 64 DSV Annual Report 2021 Consolidated financial statements 2021 3.7 Pension obligations — continued ### Pension plan assets Development in the fair value of pension plan assets breaks down as follows: Actuarial gains included in statement of comprehensive amounts to DKK 555 million. DSV expects to contribute DKK 55 million to defined benefit plan assets in 2022 (2021: DKK 55 million). The composition of the pension plan assets is as follows: ### Sensitivity analysis The following table illustrates the change in the gross obligation relating to defined benefit plans from a change in the key actuarial assumptions. The analysis is based on fairly probable changes, provided that the other parameters remain unchanged. ### Significant pension plans The most significant defined benefit plans of the Group relate to Ger- many, Sweden and Switzerland constituting in total 81% (2020: 67%) of the total net obligation of DKK 908 million (2020: DKK 1,219 million).No other countries have individual defined benefit plans of significance. The plan in Sweden is a final pay scheme, which covers all salaried 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. ## Composition of pension plan assets (%) | | 2020 | 2021 | |----|------|------| | Shares | 52% | 50% | | Bonds | 37% | 37% | | Insurance contracts | 11% | 13% | | Total | 100% | 100% | ## Sensitivity analysis (DKKm) | | | 2020 | 2021 | |-----------------|---------------------------------|-------|-------| | Defined benefit pension obligation | | 5,693 | 4,218 | | Discount rate | Increase of 0.5 percentage point | 5,293 | 3,891 | | | Decrease of 0.5 percentage point | 6,126 | 4,570 | | Future wage/salary increase | Increase of 0.5 percentage point | 5,744 | 4,282 | | | Decrease of 0.5 percentage point | 5,595 | 4,129 | | Inflation | Increase of 0.5 percentage point | 5,900 | 4,396 | | | Decrease of 0.5 percentage point | 5,479 | 4,026 | | Life expectancy | Life expectancy increase of 1 year | 5,810 | 4,296 | | | Life expectancy decrease of 1 year | 5,507 | 4,100 | Key assumptions on the most significant pension plans are as follows: ### Key assumptions | Key assumptions | 2021 | | | |-------------------------------|-------|-------|-------| | | Sweden| Germany| Other | | Discount rate | 1.5% | 1.0% | 0.3-6.1% | | Future wage/salary increase | 2.0% | 2.0% | 0-10.0% | | Future rate of inflation | 1.5% | 1.5% | 0-2.1% | | **Weighted average** | **1.5%** | **2.8%** | **1.2%** | | Mortality prognosis table | DUS14 (w-c) | RT Heubeck 2018 G | | ### Key assumption | Key assumption | 2020 | | | |-------------------------------|-------|-------|-------| | | Sweden| Germany| Other | | Discount rate | 1.9% | 0.8% | 0.1-6.8% | | Future wage/salary increase | 2.3% | 2.0% | 0-10.0% | | Future rate of inflation | 1.8% | 1.5% | 0-2.0% | | **Weighted average** | **1.6%** | **2.9%** | **1.0%** | | Mortality prognosis table | DUS14 (w-c) | RT Heubeck 2018 G | | ## Pension plan assets (DKKm) | | 2021 | 2020 | |-----------------------------|-------|-------| | Pension plan assets at 1 January | 2,999 | 3,384 | | Calculated interest on plan assets | 29 | 27 | | Return on plan assets excluding calculated interest | 298 | 52 | | Contributions to the plan | 121 | 108 | | Payments from the plan | (1,168) | (527) | | Additions from business combinations | 2,312 | - | | Currency translation | 194 | (45) | | **Pension plan assets at 31 December** | **4,785** | **2,999** | 65 DSV Annual Report 2021 Consolidated financial statements 2021 ## 3.8 Provisions ### Accounting policies Provisions are recognised when, due to an event occurring on or before the reporting date, the Group has a legal or constructive obligation and it is probable that the Group will have to give up future economic benefits to meet the obligation. Provisions are measured on the basis of Management’s best estimate of the anticipated expenditure for settlement of the relevant obligation and are discounted if deemed material. ### Management judgements and estimates Management continually assesses provisions, including contingencies and the likely outcome of pending and potential legal proceedings. The 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 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 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 - 2021 (DKKm) | | Restructuring costs | Disputes and legal actions | Other | Total | |----------------------------------|---------------------|----------------------------|-------|-------| | Provisions at 1 January | 781 | 443 | 1,554 | 2,778 | | Additions for the year | 203 | 383 | 675 | 1,261 | | Additions from business combinations | 248 | 271 | 2,205 | 2,724 | | Used for the year | (533) | (132) | (606) | (1,271) | | Reversal of provisions made in previous years | (36) | (40) | (108) | (184) | | Currency translation | 10 | 15 | 16 | 41 | | **Provisions at 31 December** | **673** | **940** | **3,736** | **5,349** | | | | | | | | Current/non-current classification: | | | | | | Non-current liabilities | 214 | 444 | 2,850 | 3,508 | | Current liabilities | 459 | 496 | 886 | 1,841 | | **Provisions at 31 December** | **673** | **940** | **3,736** | **5,349** | #### Disputes and legal actions Provisions for disputes and legal actions relate mainly to probable liabilities taken over at the acquisition of enterprises. #### Other provisions Other provisions relate mainly to restoration obligations in connection with property leases and onerous contracts relating to business combinations. 66 DSV Annual Report 2021 Consolidated financial statements 2021 # Chapter 4 Capital structure and finances This chapter includes disclosures on the financial basis and exposures of the Group’s activities derived by our capital structure and net working capital. The capital structure is linked to our long-term financial target of a gearing ratio below 2.0 x EBITDA before special items and the principles for capital allocation. In order of priority, the free cash flow is used to reduce the Group’s net interest-bearing debt in periods when the gearing ratio exceeds the target, for investments and business combinations, and for share buybacks or distribution to the Company’s shareholders. ### Accounting policies #### Share capital At year-end, the share capital of DSV A/S amounted to 240 million shares with a nominal value of DKK 1 each. In 2021, the share capital was increased by 16 million shares and used as consideration for acquiring Agility's Global Integrated Logistics business. For additional information on the acquisition, please refer to note 6.1. Additionally, 6 million shares were cancelled. Shares consist of only one share class and include no special rights, preferences or restrictions. All shares are fully paid up. ## Reserves specification – 2021 (DKKm) | | Treasury share reserve | Hedging reserve | Translation reserve | Total reserves | |------------------------------|------------------------|-----------------|---------------------|----------------| | Reserves at 1 January | (4) | (11) | (2,821) | (2.836) | | Other comprehensive income, net of tax | - | 2 | 2,480 | 2,482 | | **Total comprehensive income for the year** | **-** | **2** | **2,480** | **2,482** | | Transactions with owners: | | | | | | Purchase of treasury shares | (13) | - | - | (13) | | Sale of treasury shares | 2 | - | - | 2 | | Capital reduction | 6 | - | - | 6 | | Transfer of treasury shares as business combination consideration | 3 | - | - | 3 | | **Reserves at 31 December** | **(6)** | **(9)** | **(341)** | **(356)** | ## Reserves specification – 2020 (DKKm) | | Treasury share reserve | Hedging reserve | Translation reserve | Total reserves | |------------------------------|------------------------|-----------------|---------------------|----------------| | Reserves at 1 January | (6) | (24) | (235) | (265) | | Other comprehensive income, net of tax | - | 13 | (2,586) | (2,573) | | **Total comprehensive income for the year** | **-** | **13** | **(2,586)** | **(2,573)** | | Transactions with owners: | | | | | | Purchase of treasury shares | (6) | - | - | (6) | | Sale of treasury shares | 3 | - | - | 3 | | Capital reduction | 5 | - | - | 5 | | **Reserves at 31 December** | **(4)** | **(11)** | **(2,821)** | **(2,836)** | 4.1 Equity 67 DSV Annual Report 2021 Consolidated financial statements 2021 ### Reserves Reserves as presented in the statement of changes in equity comprise treasury reserve, hedging reserve and translations reserve, as specified on the previous page. #### Treasury share reserve The reserve comprises the nominal value of treasury shares. The 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. #### Hedging reserve The hedging reserve comprises the fair value of hedging instruments qualifying for hedge accounting. Hedge accounting ceases when the hedging instrument matures or if a hedge is no longer effective. #### Translation reserve 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. 4.1 Equity — continued 4.2 Capital structure and capital allocation | | 2021 | 2020 | |---------------------|-----------------------------------------|-----------------------------------------| | | Nominal value (DKKm) | Market value (DKKm) | % of share capital at 31 December | Nominal value (DKKm) | Market value (DKKm) | % of share capital at 31 December | | Portfolio, beginning of year | 3.9 | 3,972 | 1.7% | 6.1 | 4,247 | 2.7% | | New shares issued | 16.0 | 24,495 | 6.7% | - | - | - | | Cancellation of treasury shares | (6.0) | (5,863) | (2.5%) | (5.0) | (3,317) | (2.2%) | | Purchased during the year | 13.3 | 17,841 | 5.5% | 6.2 | 5,031 | 2.7% | | Consideration for acquisition | (19.3) | (29,571) | (8.0%) | - | - | - | | Sold during the year | (2.1) | (784) | (0.9%) | (3.4) | (1,370) | (1.5%) | | Value adjustment | - | (1,169) | - | - | (619) | - | | **Portfolio, end of year** | **5.8** | **8,921** | **2.4%** | **3.9** | **3,972** | **1.7%** | ### Capital structure The capital structure of DSV is intended to maintain financial stability, optimise cost of capital and to ensure financial readiness allowing to act on business opportunities as they present themselves. The gearing ratio was 1.4 at 31 December 2021 (2020: 1.3). The target gearing ratio is below 2.0 x EBITDA, but may exceed this level following significant acquisitions. ### Capital allocation The Group aims to spend its free cash flow in the following order of priority: 1. Repayment of net interest-bearing debt in periods when the financial gearing ratio is above target; 2. Value-adding investments in the form of acquisitions or development of the existing business; 3. Distribution to the Company’s shareholders by means of share buybacks and dividends. ### Net interest-bearing debt The Group increased its net interest-bearing debt in 2021 by DKK 11,056 million (2020: reduced by DKK 166 million).# Net interest-bearing debt Net interest-bearing debt can be specified as follows: | Net interest-bearing debt (DKKm) | 2021 | 2020 | | :------------------------------- | :----- | :----- | | Lease liabilities | 15,288 | 12,278 | | Interest-bearing borrowings | 21,472 | 8,881 | | Pensions and similar obligations | 908 | 1,219 | | Other receivables | (124) | (129) | | Cash and cash equivalents | (8,299)| (4,060)| | **Net interest-bearing debt** | **29,245** | **18,189** | ## Value-adding investments The Group had a positive cash flow on acquisitions of DKK 1,631 million in 2021, primarily relating to the acquisition of GIL, as a result of taking over a positive net cash position. 68 DSV Annual Report 2021 ### Consolidated financial statements 2021 #### Accounting policies The financial liabilities of the Group are divided into four financing 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, #### 4.2 Capital structure and capital allocation — continued #### 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** | #### Financing activities 2020 (DKKm) | | Loans and credit facilities | Issued bonds | Lease liabilities | Total liabilities from financing activities | Other non-current liabilities | Total financial liabilities | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning of year | 2,867 | 5,046 | 12,612 | 20,525 | 71 | 20,596 | | Cash flow | (1,791) | 2,697 | (3,058) | (2,152) | (62) | (2,152) | | Additions from business combinations | 10 | - | 51 | 61 | - | 61 | | Currency eects | 3 | (25) | (368) | (390) | - | (390) | | Other* | 1,089 | 12 | 3,041 | 3,053 | - | 3,053 | | End of year | 2,152 | 7,730 | 12,278 | 21,097 | 9 | 21,159 | * Other includes additions and remeasurement of financial liabilities. #### Non-cash change #### Financing activities 2021 (DKKm) | | Beginning of year | Cash flow | Additions from business combinations | Currency eects | Other* | End of year | | :--------------------------- | :---------------- | :------- | :----------------------------------- | :------------- | :----- | :---------- | | Loans and credit facilities | 1,089 | 563 | 139 | 105 | - | 1,896 | | Issued bonds | 7,730 | 11,782 | - | 48 | (3) | 19,557 | | Lease liabilities | 12,278 | (3,160) | 2,539 | 246 | 3,385 | 15,288 | | **Total liabilities from financing activities** | **21,097** | **9,185**| **2,678** | **399** | **3,382**| **36,741** | | Other non-current liabilities| 62 | - | - | 12 | - | 74 | | **Total financial liabilities**| **21,159** | - | - | - | - | **36,753** | * Other includes additions and remeasurement of financial liabilities. ### Distribution to the Company’s shareholders In 2021, the Group spent DKK 17,841 million on purchase of treasury shares and DKK 920 million on dividends distributed (2020: DKK 5,031 million and DKK 588 million, respectively). It is proposed to distribute a dividend of DKK 5.50 per share for 2021 (2020: DKK 4.00). ### Cash and capital restrictions Cash and cash equivalents comprise cash on hand and short-term liquid assets that are readily convertible to cash. Of total cash and cash equivalents, DKK 839 million (2020: DKK 930 million) are subject to restrictions implying that the cash may not be readily available for general use or distribution by the Group. Major types of cash and capital restrictions specify as follows: | Cash and capital restrictions (DKKm) | 2020 | 2021 | | :----------------------------------- | :--- | :--- | | Exchange control restrictions | 654 | 736 | | Insurance collaterals | 178 | 187 | | Other collaterals | 7 | 7 | | **Total** | **839** | **930** | #### Exchange control restrictions Exchange control restrictions comprise cash balances in countries where various forms of foreign exchange controls or other legal restrictions apply. While the cash balances are available for the daily operations of the local entities, the balances cannot be immediately repatriated to the ultimate parent company in Denmark (DSV A/S). #### Insurance collaterals Insurance collaterals constitutes security for outstanding insurance contracts sold to customers by DSV Insurance. The amount is regulated and measured in accordance with laws and regulations issued by the Danish Financial Supervisory Authority. 69 DSV Annual Report 2021 ### Consolidated financial statements 2021 #### Commitments and amounts drawn on long-term credit facilities at 31 December 2021: The Group’s financial liabilities fall due as follows: #### 4.4 Financial risks ##### Liquidity risk The cash readiness of the Group is ensured through short and long-term credit facilities from the main banks of the Group and through the 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. ##### Foreign currency risk 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** | #### Financial liabilities – maturity 2021 (DKKm) | | Carrying amount | Total cash flow, inclu ding interest | 0-1 year | 1-5 years | > 5 years | | :------------------ | :-------------- | :---------------------------------- | :------- | :-------- | :-------- | | Loans and credit facilities | 1,896 | 1,932 | 1,932 | - | - | | Issued bonds | 19,557 | 20,923 | 2,741 | 1,952 | 16,230 | | Lease liabilities | 15,288 | 18,330 | 3,692 | 9,835 | 4,803 | | Trade payables | 17,040 | 17,040 | 17,040 | - | - | | Currency derivatives| 33 | 33 | 33 | - | - | | Interest rate derivatives | 7 | (9) | (9) | - | - | | **Total** | **53,821** | **58,249** | **25,429** | **11,787**| **21,033**| #### Financial liabilities – maturity 2020 (DKKm) | | Carrying amount | Total cash flow, inclu ding interest | 0-1 year | 1-5 years | > 5 years | | :------------------ | :-------------- | :---------------------------------- | :------- | :-------- | :-------- | | Loans and credit facilities | 1,089 | 1,096 | 1,096 | - | - | | Issued bonds | 7,730 | 7,985 | 89 | 4,160 | 3,736 | | Lease liabilities | 12,278 | 13,920 | 3,122 | 7,299 | 3,499 | | Trade payables | 9,926 | 9,926 | 9,926 | - | - | | Interest rate derivatives | 17 | 20 | 3 | 17 | - | | **Total** | **31,040** | **32,947** | **14,236** | **11,476**| **7,235** | 70 DSV Annual Report 2021 ### Consolidated financial statements 2021 #### 4.4 Financial risks — continued The Group is also exposed to foreign currency risks, partly on the 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.# 4.4 Financial risks — continued ## Interest rate risk The Group’s interest rate risk relates to the long-term floating-rate loans raised by the Parent. These loans are partly converted to fixed rate loans by using interest rate swaps with a duration of up to 120 months. The Group’s loans and credit facilities break down as shown on the 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. ## Credit risk 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 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 credit worthiness with a low risk of loss. The loss allowance provision for the year is specified below: | Loss allowance provision (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%). # 4.5 Derivative financial instruments ## Accounting policies Derivative financial instruments are recognised on the trade date and are measured at fair value. Positive and negative fair values are included in other current 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. ## External hedging instruments (DKKm) | | 2021 | | | 2020 | | | | :--------------------------- | :--------------- | :----------- | :----------- | :--------------- | :----------- | :---- | | | Currency instruments | Interest rate instruments | To tal | Currency instruments | Interest rate instruments | To tal | | Contractual value | 11,801 | 744 | 12,545 | 6,447 | 744 | 7,191 | | Maturity (year) | 2022 | 2022 | | 2021 | 2021-2022 | | | Fair value | (33) | (7) | (40) | 50 | (17) | 33 | | Of which recognised in income statement | (34) | - | (34) | 51 | - | 51 | | Of which recognised in OCI | 1 | (7) | (6) | (1) | (17) | (18) | ## Foreign currency risk hedging The Group mainly uses foreign exchange forward contracts to hedge foreign currency risks. The main currencies hedged are CNY and USD. The foreign exchange forward contracts are used as fair value hedges of currency exposures relating to external balance sheet assets and liabilities as well as expected short-term operational cash flows. A loss on hedging instruments of DKK 84 million was recognised in the income statement for 2021 (2020: a gain of DKK 76 million). In the same period, a loss of DKK 28 million was recognised relating to assets and liabilities (2020: a loss of DKK 1,131 million). The net loss in 2021 primarily relates to hedging instruments loss. ## Interest rate risk hedging The Group has obtained long-term loans on a floating rate basis, implying that the Group is exposed to interest rate fluctuations. The Group mainly uses interest rate swaps to hedge future cash flows relating to interest rate risks. Thereby, floating-rate loans are converted to fixed-rate financing. The weighted average 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%). # 4.6 Earnings per share ## Fair value hierarchy by category DSV has no financial instruments measured at fair value based on level 1 input (quoted active market prices) or level 3 input (non-observable market data). All financial instruments are measured based on level 2 input (input other than quoted prices that are observable either directly or indirectly). ### Derivative financial instruments The fair value of currency and interest rate derivatives is determined based on generally accepted valuation methods using available observable market data. Calculated fair values are verified against comparable external market quotes on a monthly basis. ### Financial liabilities measured at amortised cost The carrying value of financial liabilities measured at amortised cost is not considered to differ significantly from fair value. ### Trade receivables, trade payables and other receivables Receivables and payables pertaining to operating activities and with short churn ratios are considered to have a carrying value equal to fair value.# Earnings per share (DKKm) | | 2021 | 2020 | |:-------------------------------------------------------------------|-------:|-------:| | Profit for the year | 11254 | 4258 | | Non-controlling interests’ share of consolidated profit for the year | 49 | 8 | | DSV A/S shareholders’ share of profit for the year | 11205 | 4250 | | Amortisation of customer relationships | 212 | 208 | | Share-based payment | 160 | 134 | | Special items, costs | 478 | 2164 | | Related tax effect | (208) | (610) | | Adjusted profit for the year | 11847 | 6146 | # (‘000 shares) | | 2021 | 2020 | |:-------------------------------------------------------------------|-----------:|-----------:| | Total average number of shares | 231732 | 231462 | | Average number of treasury shares | (4231) | (4216) | | Average number of shares in circulation | 227501 | 227246 | | Average dilutive effect of outstanding share options under incentive schemes | 5138 | 4330 | | Diluted average number of shares in circulation | 232639 | 231576 | # Earnings per share of DKK 1 | | 2021 | 2020 | |:-------------------------------------|-------:|-------:| | Earnings per share of DKK 1 | 49.3 | 18.7 | | Diluted earnings per share of DKK 1 | 48.2 | 18.4 | | Adjusted earnings per share of DKK 1 | 52.1 | 27.0 | | Diluted adjusted earnings per share of DKK 1 | 50.9 | 26.5 | # Financial instruments by category (DKKm) | | 2021 Carrying amount | 2020 Carrying amount | |:----------------------------------------------------|-----------------------:|-----------------------:| | **Financial assets:** | | | | Currency derivatives | - | 50 | | Trade receivables | 36369 | 19038 | | Other receivables | 6404 | 3007 | | Cash and cash equivalents | 8299 | 4060 | | Financial assets measured at amortised cost | 51072 | 26105 | | **Financial liabilities:** | | | | Interest rate derivatives | 7 | 17 | | Currency derivatives | 33 | - | | Issued bonds measured at amortised cost | 19557 | 7730 | | Loans and credit facilities | 1896 | 1089 | | Lease liabilities | 15288 | 12278 | | Trade payables | 17040 | 9926 | | Financial liabilities measured at amortised cost | 53781 | 31023 | Diluted average number of shares Diluted earnings per share and diluted adjusted earnings per share have been calculated excluding out-of-the money share options. The number of out-of-the money share options was 0 in 2021 (2020: 0). ## 4.7 Financial instruments — fair value hierarchy ## 5 Tax In 2021, we contributed with direct and indirect taxes such as corporate taxes, VAT, GST, duties etc. in more than 90 countries. Our corporate tax payments amounted to DKK 2,263 million. We believe in contributing to the societies and communities we do business in. One of the ways we do that is through our global tax payments. In all tax matters, we act in a fair, compliant and in a responsible way. ### Accounting policies Current tax payable and receivable is recognised in the balance sheet as tax calculated on the taxable income for the year adjusted for tax on taxable income for previous years and for prepaid tax. Tax for the year comprises current and deferred tax on profit or loss for the year, interest expenses related to pending tax disputes and adjust- ments to previous years, including adjustments due to tax rulings. Tax for the year is recognised in the income statement, unless the tax expense relates directly to items included in other comprehensive in- come or equity. ## Tax for the year (DKKm) | | 2020 | 2021 | |:------------------------------|-------:|-------:| | Tax on profit for the year | 3650 | 1369 | | Tax on other changes in equity | (791) | (383) | | Tax on other comprehensive income | 116 | 8 | | **Total tax for the year** | **2975** | **994** | Tax on profit for the year is calculated as follows: | | 2020 | 2021 | |:--------------------------------|-------:|-------:| | Current tax | 3830 | 1905 | | Deferred tax | (220) | (621) | | Tax adjustment relating to previous years | 40 | 85 | | **Total tax on profit for the year** | **3650** | **1369** | Tax on other comprehensive income specifies as follows: | | 2020 | 2021 | |:--------------------------------|-------:|-------:| | Fair value adjustment of hedging instruments | 3 | (3) | | Actuarial gains/(losses) | (119) | (5) | | **Total** | **(116)** | **(8)** | ### 5.1 Income tax ## Tax rate (%) | | 2020 | 2021 | |:--------------------------------------------------------------------------------|-------:|-------:| | 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%** | ### Accounting policies Deferred tax is recognised based on temporary dierences between the carrying amount and the tax value of assets and liabilities. No recognition is made of deferred tax on temporary dierences relating to amortisation or depreciation of goodwill, properties and other items if disallowed for tax purposes, except at the acquisition of enterprises, if such temporary dierences arose on the date of acquisition without aecting the results or the taxable income. In cases where it is possible to calculate the tax value according to dierent taxation rules, deferred tax is measured on the basis of the planned use of the asset or the settlement of the liability. Deferred tax assets, including the tax base of tax loss carryforwards, are recognised as other non-current assets at the expected value of their utilisation, either by elimination in tax on future earnings or by osetting deferred tax liabilities within the same legal tax entity and jurisdiction. Deferred tax assets and tax liabilities are oset if the enterprise has a legally enforceable right to set o current tax liabilities and tax assets or intends either to settle current tax liabilities and tax assets on a net basis or to realise the assets and liabilities simultaneously. Deferred tax is adjusted for elimination of unrealised intra-group gains and losses. Deferred tax is measured on the basis of the tax rules and tax rates of the relevant countries that will be eective under current legis- lation at the reporting date on which the deferred tax is expected to materialise as current tax. ### Management judgements and estimates Management applies significant estimates when recognising and measuring deferred tax assets. ## Deferred tax recognised in the balance sheet (DKKm) | | 2020 | 2021 | |:--------------------------------|-------:|-------:| | Deferred tax at 1 January | 2293 | 1709 | | 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** | **3097** | **2293** | ## Deferred tax not recognised in the balance sheet (DKKm) | | 2020 | 2021 | |:---------------------------|-------:|-------:| | Temporary differences | (58) | (27) | | Tax loss carryforwards | 1220 | 982 | | **Total tax assets not recognised** | **1162** | **955** | Of tax loss carryforwards, DKK 1,220 million may be carried forward indefinitely. Deferred tax assets, including the tax base of tax loss carryforwards are recognised if it is assessed that there will be sucient future taxable income against which the temporary dierences and unutilised tax losses can be utilised. This assessment is based on budgets and business plans for the following years, including planned business initiatives. Deferred tax assets are tested annually and are only recognised if likely to be utilised. The resolution of disputes may take several years, and the outcome is subject to considerable uncertainty. ### 5.2 Deferred tax ### Deferred tax allocation (DKKm) | | Intangible assets | PPE and ROU assets | Provisions | Other liabilities | Tax base of tax loss carry- forwards | Total | |:------------------------------------|--------------------:|---------------------:|-------------:|--------------------:|---------------------------------------:|--------:| | **2021** | | | | | | | | Deferred tax at 1 January | (253) | (1778) | 1225 | 2228 | 871 | 2293 | | Recognised in profit/loss | 105 | (475) | (1325) | 1321 | 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)** | **(2371)** | **889** | **3388** | **1334** | **3097** | | Balance sheet classification: | | | | | | | | Deferred tax assets | (128) | (1615) | 701 | 3250 | 1336 | 3544 | | Deferred tax liabilities | (15) | (756) | 188 | 138 | (2) | (447) | | | | | | | | | | **2020** | | | | | | | | Deferred tax at 1 January | (364) | (1762) | 988 | 1989 | 858 | 1709 | | 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)** | **(1778)** | **1225** | **2228** | **871** | **2293** | | Balance sheet classification: | | | | | | | | Deferred tax assets | (129) | (1576) | 1310 | 2071 | 860 | 2536 | | Deferred tax liabilities | (124) | (202) | (85) | 157 | 11 | (243) | ### Accounting policies When accounting for business combinations, the acquisition method is applied in accordance with IFRS 3. Acquirees are recognised in the consolidated financial statements from the date of acquisition. The date of acquisition is the date on which DSV obtains control of the company. Entities disposed of are recognised in the consolidated financial statements until the date of disposal. The date of disposal is the date on which DSV surrenders control of the company. The consideration transferred as payment for the acquiree consists of the fair value of assets transferred, liabilities incurred to former owners of the acquiree and equity instruments issued. Contingent considerations dependent on future events or the performance of contractual obliga- tions are also recognised at fair value and form part of the total consid- eration transferred. Fair value changes in contingent considerations are recognised in the income statement until final settlement. Identifiable assets, liabilities and contingent liabilities of the acquiree are measured at fair value at the date of acquisition by applying relevant val- uation methods. Identifiable intangibles are recognised if they are sepa- rable or arise from a contractual right. Deferred tax is recognised for identifiable tax benefits existing at the date of acquisition and from the perspective of the new combined Group in compliance with local tax legislation.# Consolidated financial statements 2021 ## Chapter 6 Other notes This chapter includes disclosures on other statutory information not directly related to the operating activities of the Group. The chapter describes the acquisition and disposal of entities during the year, contingent liabilities and security for debt as well as transactions with Group Management, auditors and other related parties. 78 DSV Annual Report 2021 ### 6.1 Acquisition and disposal of entities 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. #### Management judgements and estimates In applying the acquisition method of accounting, estimates are an integral part of assessing fair values of several identifiable assets acquired and 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. #### Acquisitions and disposals 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. #### About GIL 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. #### Strategic rationale and synergies Acquisitions are an integral part of DSV's strategy, and DSV has a track record of successful integrations. The combination with GIL is expected to increase DSV's annual revenue by approximately 23%, thereby ranking the combined company in the freight forwarding industry top three with a combined workforce of more than 75,000 employees. The combined company has own operations in more than 90 countries. Scale remains one of the key competitive advantages in freight 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: * Commercial synergies and cross-selling opportunities from stronger network and service offerings, new competencies and skills * Consolidation of operations, administration and logistics facilities * Consolidation of IT infrastructure * Strong focus on corporate responsibility and sustainability The transaction is expected to be EPS accretive (diluted and adjusted) in year 2 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. #### Consideration transferred 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. #### Transaction costs Total transaction costs recognised until 31 December 2021 amount to DKK 86 million (recognised as special items). #### Earnings impact As a consequence of the integration of Global Integrated Logistics into DSV, the disclosed earnings impact is based on estimates as no financial reporting capabilities are maintained that provide detailed consolidated financial data on the separate pre-acquisition consolidation groups. 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 and recognised goodwill 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 assets 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. 79 DSV Annual Report 2021 Consolidated financial statements 2021 ### 6.1 Acquisition and disposal of entities — continued 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. | | DKK million | | :-------------------------------------------------------------------- | :---------- | | Fair value of identified net assets acquired (before indemnification) | 27,734 | | Fair value of identified net assets acquired (after indemnification) | 29,552 | | Goodwill | 8,324 | #### Fair value measurement Material net assets acquired for which significant estimates have been applied in the fair value assessment have been recognised using the following valuation techniques: ##### Property, plant and equipment Fair value of individual material property, plant and equipment assets has been measured based on external market valuations carried out by professional appraisers and assessments of prices on an active market. ##### Customer relationships Customer relationships have been measured using a multi-period excess earnings model (MPEE), by which the present value of future cash flows from recurring contract customers expected to be retained 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.## 6.1 Acquisition and disposal of entities — continued 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. **Trade receivables and payables, contract assets and accrued cost of services** Fair value of trade receivables and trade payables, contract assets and accrued cost of services has been measured at the contractual amount expected to be received or paid. In addition, collectability has been taken into consideration on trade receivables. The amounts have not been discounted, as maturity on trade receivables and payables generally is very short and the discounted effect therefore immaterial. **Financial liabilities** Lease liabilities have been measured at the present value of the remaining lease payments at the acquisition date discounted using an appropriate incremental borrowing rate. Other financial liabilities have been measured at the present value of the repayable amounts discounted using a representative DSV borrowing rate, unless the discount 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. **Net assets and goodwill recognised (DKKm)** | | Fair value at date of acquisition | | :------------------------------ | :-------------------------------- | | Customer relationships | 569 | | Other intangible assets | 13 | | Right-of-use assets | 2,375 | | Property, plant and equipment | 2,554 | | Trade receivables | 5,452 | | Contract assets | 1,448 | | Inventories | 34 | | Deferred tax assets | 641 | | Other receivables | 2,365 | | Cash and cash equivalents | 1,759 | | **Total assets** | **17,210** | | Lease liabilities | 2,331 | | Borrowings | 139 | | Provisions | 2,724 | | Pensions and similar obligations| 355 | | Trade payables | 2,487 | | Accrued cost of services | 1,881 | | Deferred tax liabilities | 206 | | Tax payables | 601 | | Other payables | 1,929 | | **Total liabilities** | **12,653** | | NCI share of acquired net assets| 264 | | Acquired net assets | 4,293 | | Fair value of total consideration transferred | 29,493 | | Goodwill arising from the acquisition | 25,200 | ## 6.2 Share option schemes **Accounting policies** DSV's share option schemes are equity-settled, measured at the grant date and recognised in the income statement as 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 share options** | | Executive Board | Key employees | Total | Average exercise price per option | | :---------------------------- | :-------------- | :------------ | :-------- | :-------------------------------- | | Outstanding at 1 January 2020 | 760,000 | 8,228,700 | 8,988,700 | 438.2 | | Granted | 190,000 | 2,890,750 | 3,080,750 | 560.0 | | Exercised | (190,000) | (2,326,071) | (2,516,071)| 325.0 | | Options waived/expired | - | (147,250) | (147,250) | 515.2 | | Outstanding at 31 December 2020 | 760,000 | 8,646,129 | 9,406,129 | 507.2 | | Outstanding at 1 January 2021 | 760,000 | 8,646,129 | 9,406,129 | 507.2 | | Granted | 156,750 | 2,281,550 | 2,438,300 | 1,325.0 | | Transferred ¹ | 1 | 36,000 | (36,000) | - | - | | Exercised | (190,000) | (1,953,556) | (2,143,556)| 427.9 | | Options waived/expired | - | (123,475) | (123,475) | 684.7 | | Outstanding at 31 December 2021 | 762,750 | 8,814,648 | 9,577,398 | 730.9 | ¹ A member of the Executive Board has previously received share options in the Director’s former capacity as DSV key employee. ## 6.3 Remuneration of the Executive Board and the Board of Directors ### Board of Directors The aggregate remuneration for the Board of Directors of DSV A/S for 2021 was DKK 7.2 million (2020: DKK 6.9 million). **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** | ### Executive Board The members of the Executive Board are subject to a notice period of up to 24 months. The aggregate remuneration for the members of the Executive Board for 2021 was DKK 41.5 million (2020: DKK 37.6 million). The remuneration of the Executive Board breaks down as follows: **Executive Board’s remuneration (DKKm)** | | Jens Bjørn Andersen | Jens H. Lund | Michael Ebbe* | Total | | :------------------ | :------------------ | :----------- | :------------ | :---- | | **2021** | | | | | | Fixed salary | 15.2 | 11.3 | 1.1 | 27.6 | | Pension | 1.2 | 0.9 | 0.1 | 2.2 | | Share-based payment | 6.7 | 4.9 | 0.1 | 11.7 | | **Total** | **23.1** | **17.1** | **1.3** | **41.5** | **Executive Board’s remuneration (DKKm)** | | Jens Bjørn Andersen | Jens H. Lund | Michael Ebbe* | Total | | :------------------ | :------------------ | :----------- | :------------ | :---- | | **2020** | | | | | | Fixed salary | 15.2 | 11.3 | - | 26.5 | | Pension | 1.2 | 0.9 | - | 2.1 | | Share-based payment | 5.2 | 3.8 | - | 9.0 | | **Total** | **21.6** | **16.0** | **-** | **37.6** | * Michael Ebbe became a member of the Executive Board on 26 October 2021. ## 6.4 Fees to auditors appointed at the Annual General Meeting **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. The Group had the following balances with associates at 31 December: ## Contingent liabilities **Accounting policies** Contingent liabilities comprise possible obligations which have not yet been confirmed, are uncertain or cannot be measured reliably, but which, if realised, may result in a drain on the Group’s resources. Obligations are recognised in the financial statements only to the extent that the criteria for recognising a provision is met.## Management judgements and estimates Management applies judgements in assessing the existence of 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. ### Contingent liabilities 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. ### Security for debt #### Bank guarantees As part of its ordinary operations, DSV has provided bank guarantees to authorities, suppliers, etc. Associated companies balances (DKKm) | | 2020 | 2021 | | :---- | :--- | :--- | | Receivables | 26 | 29 | | Payables | 1 | 2 | The counterparties may claim appropriation of collateral if DSV fails to pay any amount due. At the reporting date, all liabilities relating to the bank guarantees provided were recognised in the balance sheet or described in note 3.6 as operating lease obligations. #### Pledges At 31 December 2021, property, plant and equipment and other 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). #### Contracts DSV has concluded IT service contracts. Costs related to these contracts are recognised as the services are provided. Associated companies transactions (DKKm) | | 2020 | 2021 | | :----------- | :--- | :--- | | Sale of services | 163 | 193 | | Purchase of services | 18 | 19 | ### Related-party transactions 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. #### Board of Directors and Executive Board No transactions with related parties were made in 2021 other than ordinary remuneration, as described in notes 6.2 and 6.3. ### Associated companies DSV holds ownership interests in 12 associates (2020: seven 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: 6.6 Contingent liabilities and security for debt 6.5 Related-party transactions 84 DSV Annual Report 2021 Consolidated financial statements 2021 ### Definition of key figures and ratios Key figures and ratios are disclosed in accordance with ‘Recommendations & Ratios’ published by the Danish Finance Society, except for financial ratios marked with (*) as these are either derived or not included in the 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. | Key figures | | | :--- | :--- | | Net interest-bearing debt | Interest-bearing debt less interest-bearing assets and cash and cash equivalents | | Net working capital | Receivables and other current operating assets less trade payables and other payables and other current operating liabilities | | Invested capital | NWC + property, plant and equipment, right-of-use (ROU) assets, intangible assets including goodwill and customer relationships less long-term provisions | | Adjusted earnings | 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 | | Net financial expenses | Financial income less financial expenses | | Special items | 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 | | Adjusted free cash flow | 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 | | Gross margin | Gross profit * 100 Revenue | | Operating margin | Operating profit (EBIT) before special items * 100 Revenue | | Conversion ratio | Operating profit (EBIT) before special items * 100 Gross profit | | Effective tax rate* | Tax on profit for the year * 100 Profit before tax | | Return on invested capital before tax | Operating profit (EBIT) before special items * 100 Average invested capital | | Return on equity | Profit attributable to the shareholders of DSV A/S * 100 Average equity excluding non-controlling interests | | Solvency ratio | Equity excluding non-controlling interests * 100 Total assets | | Gearing ratio* | Net interest-bearing debt Operating profit before amortisation, depreciation (EBITDA) before special items | | Earnings per share | Profit attributable to the shareholders of DSV A/S Average number of shares | | Diluted earnings per share | Profit attributable to the shareholders of DSV A/S Average number of shares diluted | | Diluted adjusted earnings per share | Adjusted earnings Average number of shares diluted | | Number of shares | Total number of shares outstanding excluding treasury shares at the reporting date | | Average number of shares | Average number of shares outstanding during the reporting period | | Average number of shares diluted | Average number of shares outstanding during the reporting period including share options, but excluding out-of-the-money options measured relative to the average share price for the period | **Key figures** **Financial ratios** **Share ratios** 85 DSV Annual Report 2021 Consolidated financial statements 2021 ### Group company overview The overview below is a list of companies in the DSV Group at 31 December 2021 showing the companies by segment and not by legal structure. | Company | Country | Ownership share | Activity | Parent | | :------------------------------ | :---------- | :-------------- | :------------------------------------------- | :----------------------------------- | | DSV A/S | Denmark | | | | | **Subsidiaries Europe** | | | | | | DSV Air & Sea GmbH | Austria | 100.00% | | | | Agility Logistics GmbH | Austria | 100.00% | | | | DSV Road GmbH | Austria | 100.00% | | | | DSV Transport Ltd. | Belarus | 100.00% | | | | DSV Air & Sea NV | Belgium | 100.00% | | | | Panalpina World Transport N.V. | Belgium | 100.00% | | | | AD Handling NV | Belgium | 100.00% | | | | Agility Logistics N.V. | Belgium | 100.00% | | | | ABX Worldwide Holdings NV/SA | Belgium | 100.00% | | | | Air & Sea Road Solutions Group | Belgium | 100.00% | Activity: | | | DSV Road Holding NV | Belgium | 100.00% | | | | DSV Air & Sea Belgium NV | Belgium | 100.00% | | | | DSV Solutions N.V. | Belgium | 100.00% | | | | DSV Logistics N.V. | Belgium | 100.00% | | | | DSV Road N.V. | Belgium | 100.00% | | | | MCI Brokers N.V. | Belgium | 99.90% | | | | DSV Air & Sea EOOD | Bulgaria | 100.00% | | | | DSV Road EOOD | Bulgaria | 100.00% | | | | DSV Hrvatska d.o.o. | Croatia | 100.00% | | | | Panalpina Business Services (Prague), s.r.o. | Czech Republic | 100.00% | | | | DSV Air & Sea s.r.o. | Czech Republic | 100.00% | | | | Panalpina Czech S.R.O. | Czech Republic | 100.00% | | | | Agility Logistics s.r.o | Czech Republic | 100.00% | | | | DSV Air & Sea Czech Republic s.r.o. | Czech Republic | 100.00% | | | | DSV Solutions s.r.o. | Czech Republic | 100.00% | | | | DSV Road a.s. | Czech Republic | 100.00% | | | | DSV Insurance A/S | Denmark | 100.00% | | | | DSV Group Services A/S | Denmark | 100.00% | | | | DSV Shop Hub A/S | Denmark | 100.00% | | | | DSV FS A/S | Denmark | 100.00% | | | | Anpartsselskabet af 25. januar 2017 | Denmark | 100.00% | | | | DSV Smarter Storage A/S | Denmark | 100.00% | | | | DSV Real Estate Glostrup A/S | Denmark | 100.00% | | | | DSV Air & Sea Holding A/S | Denmark | 100.00% | | | | DSV Air & Sea A/S | Denmark | 100.00% | | | | DSV Ocean Transport A/S | Denmark | 100.00% | | | | PC KH ApS | Denmark | 100.00% | | | | DSV Air & Sea Denmark ApS | Denmark | 100.00% | | | | Agility A/S | Denmark | 100.00% | | | | DSV Solutions Holding A/S | Denmark | 100.00% | | | | DSV Solutions A/S | Denmark | 100.00% | | | | DSV Real Estate Duisburg A/S | Denmark | 100.00% | | | | DSV Prime Cargo A/S | Denmark | 100.00% | | | | DSV Road Holding A/S | Denmark | 100.00% | | | | DSV Road A/S | Denmark | 100.00% | | | | DSV Real Estate Horsens A/S | Denmark | 100.00% | | | | DSV Real Estate Hedeland II A/S | Denmark | 100.00% | | | | DSV Real Estate Hedeland III A/S| Denmark | 100.00% | | | | DSV Real Estate Hedeland IV A/S | Denmark | 100.00% | | | | DSV Real Estate Hedeland 2 ApS | Denmark | 100.00% | | | | DSV Real Estate Hedeland 3 ApS | Denmark | 100.00% | | | | DSV Real Estate Hedeland 4 ApS | Denmark | 100.00% | | | | DSV Road Services A/S | Denmark | 100.00% | | | | DSV Estonia AS | Estonia | 100.00% | | | | DSV Air & Sea Oy | Finland | 100.00% | | | | DSV Air & Sea Nordic AB – filial Finland | Finland | 100.00% | | | | Oy Agility Logistics AB | Finland | 100.00% | | | | Panalpina CIS Helsinki OY | Finland | 100.00% | | | | DSV Solutions Oy | Finland | 100.00% | | | | DSV Road Oy | Finland | 100.00% | | | | DSV Air & Sea SAS | France | 100.00% | | | | Agility SAS | France | 100.00% | | | | DSV International Air & Sea France | France | 100.00% | | | | DSV Solutions SAS | France | 100.00% | | | | Agility Europort SNC | France | 100.00% | | | | DSV Road Holding S.A. | France | 100.00% | | | | DSV Road SAS | France | 100.00% | | | | ING REEIF WATTRELOS | France | 100.00% | | | | LEP Holdings GmbH | Germany | 100.00% | | | | DSV Group Services GmbH | Germany | 100.00% | | | | **Company** | **Country** | **Ownership share** | **Activity** | **Europe (continued)** | | **Company** | **Country** | **Ownership share** | **Activity** | **Europe (continued)** | | DSV Air & Sea Germany GmbH | Germany | 100.0% | | | | Agility Logistics GmbH | Germany | 100.0% | | | | Agility Projects GmbH | Germany | 100.0% | | | | DSV Air & Sea Deutschland GmbH | Germany | 100.0% | | | | DSV Real Estate Duisburg A/S - German Branch | Germany | 100.0% | | | | DSV Solutions Group GmbH | Germany | 100.0% | | | | DSV Solutions GmbH | Germany | 100.0% | | | | DSV Stuttgart GmbH & Co. KG | Germany | 100.0% | | | | DSV Stuttgart Verwaltung GmbH | Germany | 100.0% | | | | Administration & Accounting Service GmbH | Germany | 100.0% | | | | DSV Road GmbH | Germany | 100.0% | | | | DSV HELLAS S.A. | Greece | 100.0% | | | | UTi Networks Limited | Guernsey | 100.0% | | | | DSV Air & Sea Hungary K. | Hungary | 100.0% | | | | Agility Hungary LLC | Hungary | 100.0% | | | | DSV Solutions Hungary K. | Hungary | 100.0% | | | | DSV Hungaria K. | Hungary | 100.0% | | | | DSV Air & Sea Limited | Ireland | 100.0% | | | | Panalpina World Transport (Ireland) Ltd. | Ireland | 100.0% | | | | Agility Logistics Ltd | Ireland | 100.0% | | | | LEP Shannon Ltd. | Ireland | 100.0% | | | 86 DSV Annual Report 2021 Consolidated financial statements 2021# DSV Annual Report 2021 ## Consolidated financial statements 2021 | Company | Country | Ownership share | Activity | | :----------------------------------------------- | :---------------- | :-------------- | :--------------------------------------------- | | DSV Air & Sea (Ireland) Limited | Ireland | 100.0% | | | DSV Solutions Ltd. | Ireland | 100.0% | | | UTI Inventory Management Solutions Limited | Ireland | 100.0% | | | DSV Road Limited | Ireland | 100.0% | | | DSV S.p.A. | Italy | 100.0% | | | Panalpina Trasporti Mondiali S.p.A. | Italy | 100.0% | | | Agility Logistics S.r.l. | Italy | 100.0% | | | DSV Real Estate S.p.A. | Italy | 89.3% | | | DSV Air & Sea Italy S.r.l. | Italy | 100.0% | | | DSV Solutions S.R.L. | Italy | 100.0% | | | DSV Real Estate Novara S.r.l. | Italy | 66.0% | | | DSV Road S.R.L. | Italy | 100.0% | | | UTi Italy SrL | Italy | 100.0% | | | UTi Kazakhstan LLP | Kazakhstan | 100.0% | | | Agility Logistics LLP | Kazakhstan | 100.0% | | | DSV Latvia SIA | Latvia | 100.0% | | | DSV Lithuania UAB | Lithuania | 100.0% | | | DSV Air & Sea S.A. | Luxembourg | 100.0% | | | XB Luxembourg Holdings 1 SA | Luxembourg | 100.0% | | | XB Luxembourg Holdings 2 SARL | Luxembourg | 100.0% | | | DSV Lead Logistics B.V. | Netherlands | 100.0% | | | Agility Logistics International BV | Netherlands | 100.0% | | | GeoLogistics European Holdings B.V. | Netherlands | 100.0% | | | Telmidas AMS B.V. | Netherlands | 100.0% | | | TransOceanic Holdings BV | Netherlands | 100.0% | | | DSV Panalpina Finance B.V. | Netherlands | 100.0% | | | African Investments BV | Netherlands | 100.0% | | | UTi (Netherlands) Holdings BV | Netherlands | 100.0% | | | DSV Air & Sea Nederland B.V. | Netherlands | 100.0% | | | DSV Shared Services B.V. | Netherlands | 100.0% | | | Agility Restart BV | Netherlands | 100.0% | | | Agility BV | Netherlands | 100.0% | | | Agility Project Logistics BV | Netherlands | 100.0% | | | Agility Logistics Solutions BV | Netherlands | 100.0% | | | DSV Solutions Holding B.V. | Netherlands | 100.0% | | | DSV Solutions Nederland B.V. | Netherlands | 100.0% | | | IMS Holdings BV | Netherlands | 100.0% | | | DSV Multi-Channel Fulfilment B.V. | Netherlands | 100.0% | | | DSV Solutions (Dordrecht) B.V. | Netherlands | 100.0% | | | DSV Solutions (Moerdijk) B.V. | Netherlands | 100.0% | | | DSV Real Estate Dallas Holding B.V. | Netherlands | 100.0% | | | DSV Real Estate Venlo 5 B.V. | Netherlands | 100.0% | | | DSV Real Estate Maastricht B.V. | Netherlands | 100.0% | | | DSV Real Estate Moerdijk B.V. | Netherlands | 100.0% | | | DSV Moerdijk Project B.V. | Netherlands | 100.0% | | | DSV Road Holding N.V. | Netherlands | 100.0% | | | DSV Road B.V. | Netherlands | 100.0% | | | DSV ROAD DOOEL Skopje | North Macedonia | 100.0% | | | DSV Air & Sea AS | Norway | 100.0% | | | Panalpina AS | Norway | 100.0% | | | Agility AS | Norway | 100.0% | | | DSV Solutions AS | Norway | 100.0% | | | DSV Road AS | Norway | 100.0% | | | DSV International Shared Services Sp. z o.o. | Poland | 100.0% | | | DSV Real Estate Warsaw Sp. z o.o. | Poland | 100.0% | | | DSV Air & Sea Sp. z o.o. | Poland | 100.0% | | | Panalpina Polska Sp. z o.o. | Poland | 100.0% | | | Agility Logistics Spolka z.o.o | Poland | 100.0% | | | DSV Air & Sea Poland Sp. z o.o. | Poland | 100.0% | | | DSV Services Sp. z o.o. | Poland | 100.0% | | | DSV Road Sp. z o.o. | Poland | 100.0% | | | DSV Solutions Sp. z o.o. | Poland | 100.0% | | | DSV Group Services Unipessoal, Lda | Portugal | 100.0% | | | Agility Business Services Europe Ltda | Portugal | 100.0% | | | DSV Air & Sea Portugal, LDA | Portugal | 100.0% | | | DSV Solutions, Lda. | Portugal | 100.0% | | | DSV SGPS, Lda. | Portugal | 100.0% | | | Agility Transitarios, Lda | Portugal | 100.0% | | | DSV Transitarios, Lda. | Portugal | 100.0% | | | DSV Air & Sea SRL | Romania | 100.0% | | | Agility Logistics SRL | Romania | 100.0% | | | DSV Solutions S.R.L. | Romania | 100.0% | | | DSV Air & Sea JSC | Russia | 100.0% | | | DSV Sakhalin, OOO | Russia | 68.0% | | | Geologistics CJSC | Russia | 100.0% | | | Agility Logistics LLC | Russia | 100.0% | | | Agility Forwarding LLC | Russia | 100.0% | | | Agility Services LLC | Russia | 100.0% | | | DSV Solutions OOO | Russia | 100.0% | | | DSV Road OOO | Russia | 100.0% | | | OOO DSV Transport | Russia | 100.0% | | | DSV Road d.o.o. | Serbia | 100.0% | | | DSV Solutions Slovakia s. r. o. | Slovakia | 100.0% | | | DSV Air & Sea Slovakia s.r.o. | Slovakia | 100.0% | | | Agility Logistics s.r.o. | Slovakia | 100.0% | | | DSV Slovakia, s.r.o. | Slovakia | 100.0% | | | DSV Transport d.o.o. | Slovenia | 100.0% | | | Tacisa Transitaria S.L. | Spain | 100.0% | | | Agility Spain SA | Spain | 100.0% | | | DSV Air & Sea International, S.L.U. | Spain | 100.0% | | | DSV Solutions Spain S.A.U. | Spain | 100.0% | | | Servicios Logisticos Integrados SLI, S.A. | Spain | 100.0% | | | DSV Road Spain S.A.U. | Spain | 100.0% | | | DSV Holding Spain S.L. | Spain | 100.0% | | | DSV Air & Sea, S.A.U. | Spain | 100.0% | | | DSV Air & Sea AB | Sweden | 100.0% | | | DSV Air & Sea Nordic AB | Sweden | 100.0% | | | Agility AB | Sweden | 100.0% | | | DSV Solutions AB | Sweden | 100.0% | | | DSV Real Estate Rosersberg AB | Sweden | 100.0% | | | DSV Group AB | Sweden | 100.0% | | | DSV Road AB | Sweden | 100.0% | | | Göinge Frakt EK | Sweden | 100.0% | | | DSV Road Property Holding AB | Sweden | 100.0% | | | Agility Management AG | Switzerland | 100.0% | | | Panalpina Welttransport Holding AG | Switzerland | 100.0% | | | Panalpina Management AG | Switzerland | 100.0% | | | Panalpina International AG | Switzerland | 100.0% | | | Panalpina Global Employment Services AG | Switzerland | 100.0% | | | Panalpina Air & Ocean AG in liquidation | Switzerland | 100.0% | | | DSV Air & Sea AG | Switzerland | 100.0% | | | Agility Logistics AG | Switzerland | 100.0% | | | Agility Logistics CIS AG | Switzerland | 100.0% | | | Agility GIL Services AG | Switzerland | 100.0% | | | DSV Logistics S.A. | Switzerland | 100.0% | | | DSV Air & Sea A.S. | Turkey | 100.0% | | | Agility Lojistik Anonim Sirketi | Turkey | 100.0% | | | DSV International Hava ve Deniz Taşimaciliği Ltd.Şirketi | Turkey | 100.0% | | | DSV Road & Solutions A.S. | Turkey | 100.0% | | | Panalpina World Transport Ltd. | Ukraine | 100.0% | | | DSV Logistics LLC | Ukraine | 100.0% | | | Agility Logistics LLC | Ukraine | 100.0% | | | Agility Logistics Holdings Ltd. | United Kingdom | 100.0% | | | DSV Air & Sea Limited | United Kingdom | 100.0% | | | UTi (UK) Holdings Ltd. | United Kingdom | 100.0% | | | UTi Worldwide (UK) Ltd. | United Kingdom | 100.0% | | | Panalpina World Transport Ltd. | United Kingdom | 100.0% | | | Agility Logistics Ltd. | United Kingdom | 100.0% | | | Agility Fairs and Events Logistics Ltd. | United Kingdom | 100.0% | | | Agility Pension Plan Trustees Ltd. | United Kingdom | 100.0% | | | Agility Management Ltd - Europe Region Management HQ | United Kingdom | 100.0% | | | Agility Management Ltd - IT Bureau | United Kingdom | 100.0% | | | DSV Air & Sea 2018 (UK) Limited | United Kingdom | 100.0% | | | Agility Projects Logistics Limited | United Kingdom | 100.0% | | | Agility Logistics Solutions Ltd. | United Kingdom | 100.0% | | | Agility Management Ltd | United Kingdom | 100.0% | | | DSV Peterborough Real Estate Limited | United Kingdom | 100.0% | | | DSV Real Estate Thrapston Limited | United Kingdom | 100.0% | | | DSV Road Holding Ltd. | United Kingdom | 100.0% | | | DSV Commercials Ltd. | United Kingdom | 100.0% | | | DSV Road Ltd. | United Kingdom | 100.0% | | | Global Options Worldwide Express (Ltd) | United Kingdom | 100.0% | | | DSV Pension Trustees Ltd. | United Kingdom | 100.0% | | | DSV Solutions Ltd. | United Kingdom | 100.0% | | | DFDS Transport Ltd. | United Kingdom | 100.0% | | | DSV Real Estate Tamworth Ltd. | United Kingdom | 100.0% | | | Company | Country | Ownership share | Activity | | :--------------------------------------- | :---------------- | :-------------- | :--------- | | GeoLogistics Holdings (Bermuda) Limited | Bermuda | 100.0% | | | DSV Air & Sea Inc. | Canada | 100.0% | | | Agility Logistics, Ltd. | Canada | 100.0% | | | DSV Solutions Inc. | Canada | 100.0% | | | DSV Road, Inc. | Canada | 100.0% | | | DSV Air & Sea, S.A. de C.V. | Mexico | 100.0% | | | Panalpina Servicios S.A. de C.V. | Mexico | 100.0% | | | TransOceanic Shipping Co. S. de RL de C.V. | Mexico | 100.0% | | | DSV Solutions S.A. de C.V. | Mexico | 100.0% | | | DSV Road, S.A. de C.V. | Mexico | 100.0% | | | DSV 4PL Inc. | United States | 100.0% | | | Agility Holdings Inc. | United States | 100.0% | | | DSV Air & Sea Holding Inc. | United States | 100.0% | | | DSV Air & Sea Inc. | United States | 100.0% | | | Agility Fairs and Events Logistics LLC | United States | 100.0% | | | American Inland Transport, Inc. | United States | 100.0% | | | DSV Air & Sea International Holding Inc. | United States | 100.0% | | | Agility Logistics Corporation | United States | 100.0% | | | Agility Project Logistics, Inc. | United States | 100.0% | | | Seagull Marine, Inc. | United States | 100.0% | | | Agility Logistics Solutions, Inc. | United States | 100.0% | | | Agility Domestic Solutions LLC | United States | 51.0% | | | DSV Solutions, LLC | United States | 100.0% | | | DSV Inventory Management Solutions Inc. | United States | 100.0% | | | DSV Real Estate Dallas Inc. | United States | 100.0% | | | Market Industries LLC | United States | 100.0% | | | Sammons Transportation, Inc. | United States | 100.0% | | | DSV Road, Inc. | United States | 100.0% | | | Company | Country | Ownership share | Activity | | :------------------------------------------ | :------------------- | :-------------- | :--------- | | UTi Logistics Argentina S.A. | Argentina | 100.0% | | | Panalpina Transportes Mundiales S.A. | Argentina | 100.0% | | | DSV Solutions Brasil Serviços de Logística Ltda. | Brazil | 100.0% | | | DSV Air & Sea Brasil Ltda. | Brazil | 100.0% | | | Agility do Brasil Logística Internacional S.A. | Brazil | 100.0% | | | TransOceanic Projects do Brasil Servicos de Cargas Ltda. | Brazil | 100.0% | | | UTi Worldwide Inc. | Brit. Virgin Islands | 100.0% | | | Goddard Company Limited | Brit. Virgin Islands | 100.0% | | | UTi International Inc. | Brit. Virgin Islands | 100.0% | | | UTi Logistics (Proprietary) Limited | Brit. Virgin Islands | 100.0% | | | Thomas International Freight Auditors Limited | Brit. Virgin Islands | 100.0% | | | UTi Kazakhstan Investments Ltd | Brit. Virgin Islands | 100.0% | | | Agility (Asia/Pacific) Limited | Brit. Virgin Islands | 100.0% | | | PWC Global Logistics Holdings Ltd | Brit. Virgin Islands | 100.0% | | | DSV Air & Sea (Latin America) Holding S.A. | Chile | 100.0% | | | DSV Air & Sea S.A. | Chile | 100.0% | | | Panalpina Chile Transportes Mundiales Ltda. | Chile | 100.0% | | | Agility Logistics Corp. Holding SpA | Chile | 100.0% | | | Agility Logistics Chile SA | Chile | 51.0% | | | DSV Air & Sea S.A.S. | Colombia | 100.0% | | | Agility Logistics Colombia S.A.S. | Colombia | 100.0% | | | DSV Solutions S.A.S. | Colombia | 100.0% | | | DSV Air & Sea S.A. | Costa Rica | 100.0% | | | Agility Logistics Holdings NV | Curacao | 100.0% | | | LEP International NV | Curacao | 100.0% | | | DSV AIR & SEA DOMINICANA, S.R.L. | Dominican Republic | 100.0% | | | DSV-AIR&SEA S.A. | Ecuador | 100.0% | | | DSV Air & Sea, S.A. de C.V. | El Salvador | 100.0% | | | DSV Air & Sea PA Inc. | Panama | 100.0% | | | Panalpina SEM, S.A. | Panama | 100.0% | | | Panalpina S.A. | Panama | 100.0% | | | Almacenadora Mercantil S.A. | Panama | 100.0% | | | DSV Air & Sea S.A. | Peru | 100.0% | | | Agility Logistics Peru S.A. | Peru | 100.0% | | | DSV Air & Sea (PR) Inc. | Puerto Rico | 100.0% | | | Arabella Shipping Ltd | Saint Vincent And The Grenadines | 100.0% | | | DSV Air & Sea Uruguay - Servicios Logisticos SA | Uruguay | 100.0% | | | Panalpina Uruguay Transportes Mundiales S.A. | Uruguay | 100.0% | | | Panalpina Zona Franca S.A. | Uruguay | 100.0% | | | TransOceanic Projects Venezuela SRL | Venezuela | 100.0% | | | Company | Country | Ownership share | Activity | | :-------------------- | :-------- | :-------------- | :--------- | | DSV Air & Sea Ltd. | Bangladesh | 100.0% | | | Agility Ltd. | Bangladesh | 100.0% | |# DSV Annual Report 2021 ## Consolidated financial statements 2021 Company | Country | Ownership share | Activity ------- | -------- | -------- | -------- UTI Pership (Pvt) Limited - Bangladesh Branch | Bangladesh | 100.0% | DSV Air & Sea (Cambodia) Co., Ltd. | Cambodia | 100.0% | Prime Cargo (Cambodia) Co., Ltd. | Cambodia | 100.0% | Agility Logistics Limited | Cambodia | 100.0% | DSV Air & Sea Co., Ltd. | Cambodia | 100.0% | UTi Worldwide Co. Ltd. - Cambodia Branch (USD) | Cambodia | 100.0% | DSV Air & Sea Co., Ltd. | China | 100.0% | DSV Air & Sea Co., Ltd. (South East China) | China | 100.0% | Prime Cargo Shanghai Ltd. | China | 100.0% | DSV Air & Sea Co., Ltd. (China) | China | 100.0% | Baisui United Logistics (Shanghai) Co. Ltd. | China | 100.0% | Agility Logistics (Shanghai) Limited | China | 100.0% | Agility Fairs & Events Logistics (Shanghai) Co. Ltd. | China | 100.0% | Qingdao Agility Consultancy Services Limited | China | 100.0% | DSV Logistics Co., Ltd. | China | 100.0% | Panalpina World Transport (PRC) Ltd. | China | 100.0% | Agility Warehouse (Shanghai) Co. Ltd. | China | 100.0% | DSV Air & Sea Ltd. | Hong Kong | 100.0% | Pantainer (H.K.) Ltd. | Hong Kong | 100.0% | Prime Cargo (H.K.) Ltd. | Hong Kong | 100.0% | Agility Logistics Limited | Hong Kong | 100.0% | Agility Logistics Limited - Asia Pacific Regional Management | Hong Kong | 100.0% | Agility Fairs & Events Logistics Limited | Hong Kong | 100.0% | ECT Transport Limited | Hong Kong | 100.0% | LEP Int'l NV - Hong Kong | Hong Kong | 100.0% | DSV Solutions Limited | Hong Kong | 100.0% | DSV Air & Sea (HK) Ltd. | Hong Kong | 100.0% | Panalpina World Transport Ltd. | Hong Kong | 100.0% | Panalpina China Ltd. | Hong Kong | 100.0% | GIL Shared Services Private Limited | India | 100.0% | DSV Air & Sea Pvt. Ltd. | India | 100.0% | DSV Air & Sea International Private Limited | India | 100.0% | Agility Logistics Private Limited | India | 100.0% | LEP Int'l NV - India | India | 100.0% | DSV Coload & Clearance Pvt. Ltd. | India | 100.0% | DSV Solutions Private Limited | India | 100.0% | PT. DSV Transport Indonesia | Indonesia | 92.7% | PT Agility Indonesia | Indonesia | 100.0% | PT Agility International Indonesia | Indonesia | 100.0% | PT Synergy Indonesia | Indonesia | 100.0% | PT Sarana Prima Optima | Indonesia | 100.0% | LEP Int'l NV - Indonesia | Indonesia | 100.0% | DSV Air & Sea Japan GK | Japan | 100.0% | Agility Ltd. | Japan | 100.0% | LEP Int'l NV - Japan | Japan | 100.0% | DSV Air & Sea Co., Ltd. | Japan | 100.0% | DSV Solutions Co., Ltd. | Japan | 100.0% | DSV Air & Sea Ltd. | Korea | 100.0% | Agility Ltd. | Korea | 100.0% | LEP Int'l NV - Korea | Korea | 100.0% | DSV Air & Sea International Ltd. | Korea | 100.0% | DSV Air and Sea Limited | Macao | 100.0% | DSV Air & Sea Sdn. Bhd. | Malaysia | 100.0% | Panalpina Customs Services (M) SDN BHD | Malaysia | 100.0% | Litvest Corporation Sdn Bhd | Malaysia | 100.0% | Agility Logistics Sdn Bhd | Malaysia | 100.0% | GOCT Logistics Sdn Bhd | Malaysia | 100.0% | DSV Shared Services Asia Sdn Bhd | Malaysia | 100.0% | Logik Pengurusan Sdn Bhd | Malaysia | 100.0% | LEP Int'l NV - Malaysia | Malaysia | 100.0% | DSV Logistics Sdn. Bhd. | Malaysia | 100.0% | DSV SOLUTIONS SDN. BHD. | Malaysia | 100.0% | Panalpina Transport (Malaysia) Sdn. Bhd. | Malaysia | 100.0% | UTi Inventory Management Solutions Sdn Bhd | Malaysia | 100.0% | DSV Air & Sea (Myanmar) Limited | Myanmar | 100.0% | DSV Air & Sea Ltd. | Myanmar | 100.0% | DSV Air and Sea Pakistan (SMC-Private) Limited | Pakistan | 100.0% | Agility Logistics (Private) Limited | Pakistan | 100.0% | Agility Limited | Papua New Guinea | 100.0% | Panalpina Global Business Services (GBS) - Philippines | Philippines | 100.0% | DSV International Shared Services Inc. | Philippines | 100.0% | DSV Air & Sea Inc. | Philippines | 100.0% | Agility Holding Company, Inc. | Philippines | 100.0% | Agility Logistics Holding, Inc. | Philippines | 100.0% | Agility International Logistics, Inc. | Philippines | 100.0% | LEP Int'l NV - Philippines | Philippines | 100.0% | UTi (Global Logistics) Inc. | Philippines | 100.0% | DSV SHARED SERVICES MANILA (ROHQ) | Philippines | 100.0% | Panalpina World Transport (Philippines) Inc. | Philippines | 100.0% | Agility Solutions, Inc. | Philippines | 100.0% | Agility Logistics Distribution, Inc. | Philippines | 100.0% | DSV Lead Logistics Pte. Ltd. | Singapore | 100.0% | Agility Logistics Holdings Pte Ltd | Singapore | 100.0% | Agility Logistics Holdings (S) Pte. Ltd. | Singapore | 100.0% | DSV Air & Sea Pte. Ltd. | Singapore | 100.0% | Agility International Logistics Pte. Ltd. | Singapore | 100.0% | Agility Fairs & Events Logistics Pte. Ltd. | Singapore | 100.0% | Agility Fairs & Events Logistics Pte. Ltd. - Fairs & Events | Singapore | 100.0% | Agility Shipping Pte. Ltd. | Singapore | 100.0% | Agility Project Logistics Pte. Ltd. | Singapore | 100.0% | Agility Logistics Solutions Pte Ltd | Singapore | 100.0% | China Baisui Logistics Pte Ltd | Singapore | 100.0% | Agility Logistics Services Pte Ltd | Singapore | 100.0% | ECT Transport Pte. Ltd. | Singapore | 100.0% | LEP Int'l NV - Singapore | Singapore | 100.0% | ABX LOGISTICS Singapore PTE LTD | Singapore | 100.0% | DSV Solutions Pte Ltd. | Singapore | 100.0% | DSV Air & Sea Singapore Pte. Ltd. | Singapore | 100.0% | Inventory Solutions (Singapore) Pte. Ltd | Singapore | 100.0% | UTi Pership (Pvt) Limited | Sri Lanka | 51.0% | DSV Pership (Private) Limited | Sri Lanka | 40.0% | DSV Air & Sea Co., Ltd. | Taiwan | 100.0% | Trans-Link Exhibition Services Co. Ltd. | Taiwan | 50.0% | Agility Limited | Taiwan | 100.0% | LEP Int'l NV - Taiwan | Taiwan | 100.0% | UTi Holding Co., Ltd. | Taiwan | 100.0% | DSV Air & Sea (Taiwan) Ltd. | Taiwan | 100.0% | DSV Solutions Co., Ltd. | Taiwan | 100.0% | Panalpina Asia-Pacific Services (Thailand) Ltd. | Thailand | 100.0% | Supreme Eliga Co. Ltd. | Thailand | 100.0% | Agility Co. Ltd. | Thailand | 99.5% | LEP Int'l NV - Thailand | Thailand | 100.0% | DSV Solutions Ltd. | Thailand | 100.0% | DSV Holding (Thailand) Co., Ltd. | Thailand | 100.0% | Panalpina World Transport (Thailand) Ltd. | Thailand | 100.0% | DSV Air & Sea Ltd. | Thailand | 100.0% | Panalpina World Transport (Vietnam) Co. Ltd. | Viet Nam | 99.0% | DSV Solutions Co., Ltd | Viet Nam | 100.0% | Agility Logistics Vietnam Company Ltd | Viet Nam | 100.0% | Agility Ltd | Viet Nam | 71.0% | DSV Air & Sea Vietnam Limited | Viet Nam | 100.0% | Inventory Management Solutions Vietnam Limited | Viet Nam | 100.0% | Agility Logistics Limited | Afghanistan | 100.0% | Panalpina Central Asia EC - Azerbaijan Branch | Azerbaijan | 100.0% | Panalpina Azerbaijan LLC | Azerbaijan | 100.0% | DSV W.L.L. | Bahrain | 100.0% | Panalpina Central Asia EC | Bahrain | 100.0% | Agility Bahrain B.S.C.C. | Bahrain | 100.0% | Panalpina Georgia LLC | Georgia | 100.0% | Al-Alb Co. for General Transportation (PLLC) | Iraq | 100.0% | Agility Kurdistan Company for Admin istration of Warehouses and Facilitate Storage Process Limited | Iraq | 67.5% | The Warehousing Company for Shipping, Discharging and Custom Clearance LLC | Iraq | 100.0% | Shebil Company For Goods & Petroleum Products Transportation Ltd | Iraq | 100.0% | Panalpina Jebel Ali Ltd. - Erbil Branch | Iraq | 100.0% | DSV Air & Sea Ltd. | Israel | 100.0% | DSV Marine Insurance Agency Ltd. | Israel | 100.0% | Hermes Exhibition & Projects Limited | Israel | 100.0% | DSV - E-COMMERCE LTD. | Israel | 100.0% | DSV Solutions Ltd | Israel | 100.0% | U.T.I.-Inventory Management Solutions Limited partnership | Israel | 100.0% | UTI IMS Ltd. | Israel | 100.0% | Global Options Worldwide Express (Ltd) | Israel | 90.0% | DSV Air & Sea Jordan | Jordan | 100.0% | Public warehousing Company -Jordan PSC | Jordan | 100.0% | Al-Mutakamelah Lekhadmat Al -Takhlees Ltd / East Jordan for clearance | Jordan | 100.0% | Public Warehousing Company for Storage and Distribution Services | Jordan | 100.0% | Public warehousing Company -Jordan PSC - Aqaba Branch | Jordan | 100.0% | Agility GIL for Company Business Management Co. W.L.L | Kuwait | 100.0% | Global Logistics for General Trading and Contracting Co. WLL | Kuwait | 100.0% | DSV Air & Sea Co. W.L.L. | Kuwait | 49.0% | Agility Transport Co. W.L.L. | Kuwait | 100.0% | Muroona Logistics Solution Co. for General Trading of Equipments, Supplier for Construction and Real Estate WLL | Kuwait | 100.0% | Agility GIL for Warehousing and Third Party inventory Management S.P.C | Kuwait | 100.0% | Agility Logistics Cargo Transport Co. WLL | Kuwait | 100.0% | Agility Freight Forwarding (Lebanon) SARL | Lebanon | 100.0% | PWC Trading and contracting Lebanon SAL (Holding) | Lebanon | 100.0% | PWC Lebanon (Holding) SAL | Lebanon | 100.0% | Agility Logistics Lebanon SAL | Lebanon | 100.0% | PWC investments (Lebanon) SARL | Lebanon | 100.0% | DSV Air and Sea LLC | Oman | 70.0% | Global Logistics (Oman) LLC | Oman | 50.0% | Panalpina Qatar WLL | Qatar | 49.0% | DSV Panalpina Marine Shipping W.L.L. | Qatar | 100.0% | Panalpina World Transport (Saudi Arabia) Ltd. | Saudi Arabia | 100.0% | Agility Company LLC | Saudi Arabia | 100.0% | GIL INTERNATIONAL HOLDINGS I LIMITED | United Arab Emirates | 100.0% | GIL INTERNATIONAL HOLDINGS II LIMITED | United Arab Emirates | 100.0% | GIL INTERNATIONAL HOLDINGS III LIMITED | United Arab Emirates | 100.0% | DSV Air & Sea (LLC) | United Arab Emirates | 100.0% | DSV Solutions DWC-LLC | United Arab Emirates | 100.0% | Panalpina Jebel Ali Ltd. | United Arab Emirates | 100.0% | DSV Gulf Customs Broker LLC | United Arab Emirates | 49.0% | DSV Air and Sea DWC-LLC | United Arab Emirates | 100.0% | DSV Air and Sea Middle East DWC-LLC | United Arab Emirates | 100.0% | Agility (Abu Dhabi) PJSC | United Arab Emirates | 49.0% | Agility Logistics (L.L.C.) | United Arab Emirates | 100.0% | Agility Global Logistics FZE - Control Tower - MEA Regional Oce | United Arab Emirates | 100.0% | Agility GIL Middle East and Africa FZE | United Arab Emirates | 100.0% | Agility Logistics Transport Shipping Services LLC | United Arab Emirates | 99.0% | Agility Sport & Recreational Ticketing LLC | United Arab Emirates | 99.0% | Agility Global Logistics FZE | United Arab Emirates | 100.0% | DSV Air & Sea Pty. Ltd. | Australia | 100.0% | DSV Solutions Pty. Ltd. |Australia 100.0% Agility Logistics Holdings Pty Ltd Australia 100.0% Agility Logistics Pty Ltd Australia 100.0% Blockpack Pty Ltd Australia 100.0% Agility Fairs & Events Logistics Pty Ltd Australia 100.0% Agility Project Logistics Pty Ltd Australia 100.0% Agility Shipping Pty Ltd Australia 100.0% DSV Air & Sea Limited New Zealand 100.0% Agility Limited New Zealand 100.0% Agility Maghreb Sarl Algeria 49.0% Agility Logistics SARL Algeria 100.0% Frans Maas Algerie S.a.r.l. Algeria 100.0% Panalpina Transportes Mundiais Navegãçao e Trânsitos S.A.R.L. Angola 49.0% Global Integrated Logistics Lda Angola 70.0% DSV Air & Sea (PTY) Limited Botswana 100.0% Panalpina Transports Mondiaux Cameroun S.A.R.L. Cameroon 90.0% DSV-UTI Egypt Ltd. Egypt 100.0% Panalpina World Transport Egypt LLC Egypt 100.0% Agility Egypt for Shipping and Freight Egypt 100.0% Agility Logistics Egypt SAE Egypt 100.0% Global Options Worldwide Express Investments (Pty) Ltd Eswatini 100.0% Panalpina Transports Mondiaux Gabon S.A. Gabon 89.8% DSV Air & Sea Limited Ghana 100.0% DSV Air & Sea Limited Kenya 100.0% Panalpina Kenya Ltd. Kenya 100.0% DSV Air & Sea Limited Malawi 100.0% Globeflight Worldwide Express Pty Ltd Malawi 50.0% GIL Africa Holdings Ltd Mauritius 100.0% Panalpina Morocco S.A.R.L. Morocco 100.0% Agility SARLAU Morocco 100.0% DSV Transport Int'l S.A Morocco 100.0% Terminal Handling Company Morocco 100.0% DSV Air & Sea Limitada Mozambique 100.0% Agility Logistics LDA Mozambique 100.0% Agility Global Integrated Logistics Lda Mozambique 100.0% Globeflight Worldwide Express (Pty) Ltd Namibia 100.0% Saima Nigeria Ltd. Nigeria 40.0% Nationwide Clearing & Forwarding Ltd. Nigeria 36.6% DSV Freight International Limited Nigeria 100.0% Agility Freight Forwarding and Transport International Ltd Nigeria 70.0% DSV Air & Sea Ltd. Rwanda 100.0% DSV Air and Sea (Proprietary) Limited South Africa 100.0% DSV South Africa (Pty) Ltd. South Africa 75.0% DSV Shared Services (Pty) Ltd. South Africa 100.0% UTi Logistics (Proprietary) Limited - SC OCS Division South Africa 100.0% DSV AFRICA HOLDING (Pty) Ltd. South Africa 100.0% DSV Skyservices (Pty) Ltd South Africa 100.0% Scorpion Share Block (Pty) Ltd. South Africa 100.0% Marine Link (Pty) Ltd. South Africa 100.0% DSV Real Estate Johannesburg (Pty) Ltd. South Africa 100.0% Firefly Investments 337 Properties Proprietary Limited South Africa 100.0% Linkit lnvestments (Pty) Ltd. South Africa 80.0% DSV Empowerment Trust South Africa 100.0% Agility South Africa (Pty) Ltd South Africa 100.0% DSV Healthcare (Pty) Ltd. South Africa 100.0% DSV Solutions (Pty) Ltd. South Africa 100.0% DSV Assembly Services (Pty) Ltd. South Africa 65.3% DSV Mounties (Pty) Ltd. South Africa 100.0% DSV Road (Pty) Ltd. South Africa 100.0% Globeflight Worldwide Express (SA) Pty Ltd South Africa 100.0% Mercury Couriers (Pty) Ltd South Africa 100.0% DSV Air & Sea Limited Tanzania 100.0% Panalpina World Transport Tanzania Limited Tanzania 100.0% Agility Logistics Limited Tanzania 100.0% DSV Air & Sea Limited Uganda 100.0% Panalpina Uganda Limited Uganda 100.0% Agility Logistics Limited Uganda 100.0% Swi Freight International (Zambia) Ltd. Zambia 100.0% DSV Air & Sea Limited Zambia 100.0% DSV Air & Sea (Private) Limited Zimbabwe 100.0% Associates Trans-Link Cambodia Ltd Cambodia 49.0% GT Stevedores Oy Finland 25.5% KM Logistik GmbH Germany 35.0% IDS Logistik GmbH Germany 28.0% Sama Al Imad General Transport LLC Iraq 30.0% MGM Lines Srl Italy 30.0% Tristar Transport (Private) Limited Pakistan 50.0% Beavor Properties (Pty) Ltd. South Africa 25.0% Agility Logistics (Private) Limited Sri Lanka 40.0% ATS Air Transport Service AG Switzerland 48.0% Polymer Logistics Investments LLC United Arab Emirates 36.5% Key Logistics, Inc. United States 49.0% ## Statement by the Board of Directors and the Executive Board 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. Hedehusene, 9 February 2022 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 annual report of DSV A/S for the financial year 1 Janu- ary 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 circum- stances 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. ## Statements ### Independent Auditor’s reports To the shareholders of DSV A/S #### Report on the audit of the Financial Statements ##### Our opinion 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 accord- ance 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. ##### What we have audited 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 in- come, cash flow statement, balance sheet, statement of changes in eq- uity 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”. ##### Basis for opinion 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 sucient and appropriate to provide a basis for our opinion. ##### Independence 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 require- ments applicable in Denmark. We have also fulfilled our other ethical re- sponsibilities in accordance with these requirements and the IESBA Code. To the best of our knowledge and belief, prohibited non-audit services re- ferred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided. ##### Appointment 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 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 eect as at 16 August 2021. When acquiring GIL, DSV prepared a pur- chase 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 meth- odologies. In order to determine the fair value of the separately identified assets and liabilities in a business combination, the valuation methodolo- gies require input based on assumptions about the future and applied dis- counted 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. ### How our audit addressed the key audit matter 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. ## Revenue recognition, contract assets and accrued cost of services 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. 95 DSV Annual Report 2021 Statements 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 year-end 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. ### How our audit addressed the key audit matter 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. ## Deferred tax assets and income tax positions 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. ### How our audit addressed the key audit matter 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. ## Statement on Management’s Commentary 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’s responsibilities for the Financial Statements 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 96 DSV Annual Report 2021 Statements either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. ## Auditor’s responsibilities for the audit of the Financial Statements 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. We also: * Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control. * 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.# Report of Independent Registered Public Accounting Firm To the Shareholders and Board of Directors of DSV A/S ## Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of DSV A/S and its subsidiaries (the "Group"), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of income, comprehensive income, changes in equity, and cash flows for the years ended December 31, 2021 and 2020, and the related notes to the consolidated financial statements. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of December 31, 2021 and 2020, and the results of its operations and its cash flows for the years then ended in accordance with International Financial Reporting Standards as adopted by the European Union. ## Basis for Opinion These financial statements are the responsibility of the Group's management. Our responsibility is to express an opinion on the Group's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing those procedures that are necessary in the circumstances, including: * Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. * Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 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. ## Report on compliance with the ESEF Regulation 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: * The preparing of the annual report in XHTML format; * The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary; * Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human-readable format; and * For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation. 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. 97 DSV Annual Report 2021 Statements The procedures include: * Testing whether the annual report is prepared in XHTML format; * Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the tagging process; * Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements; * Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified; * Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and * Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements. 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. Copenhagen, 9 February 2022 Lars Baungaard State Authorised Public Accountant Mne23331 Kim Tromholt State Authorised Public Accountant Mne33251 PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 3377 1231 98 DSV Annual Report 2021 Statements ## Parent Company financial statements ### Financial statements * Income statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 * Statement of comprehensive income . . . . . . . . . . . . . . . . . 100 * Cash flow statement . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 * Balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102 * Statement of changes in equity . . . . . . . . . . . . . . . . . . . . 103 ### Notes #### Basis of preparation 1. Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . 104 2. Changes in accounting policies . . . . . . . . . . . . . . . . . . 104 3. Management judgements and estimates . . . . . . . . . . . . 104 4. New accounting regulations . . . . . . . . . . . . . . . . . . . 104 #### Income statement 5. Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 6. Fees to auditors appointed at the Annual General Meeting . . 104 7. Sta costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 8. Special items . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 9. Financial income . . . . . . . . . . . . . . . . . . . . . . . . . . 105 10. Financial expenses . . . . . . . . . . . . . . . . . . . . . . . . . 105 11. Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Table of contents #### Balance sheet 12. Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . 105 13. Other plant and operating equipment . . . . . . . . . . . . . . 106 14. Current receivables from group entities and other receivables . 106 15. Equity reserves . . . . . . . . . . . . . . . . . . . . . . . . . 106 16. Financial liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 107 17. Payables to Group entities and other payables . . . . . . . . . 107 18. Deferred tax asset . . . . . . . . . . . . . . . . . . . . . . . . . 107 #### Supplementary information 19. Share option schemes . . . . . . . . . . . . . . . . . . . . . . . 108 20. Investments in Group entities . . . . . . . . . . . . . . . . . . 108 21. Derivative financial instruments . . . . . . . . . . . . . . . . . 109 22. Financial risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 23. Contingent liabilities and security for debt . . . . . . . . . . . 110 24. Related-party transactions . . . . . . . . . . . . . . . . . . . . 110 99 DSV Annual Report 2021 Parent Company financial statements ## 2021 Income statement | Statement of comprehensive income (DKKm) | Note | 2021 | 2020 | | :--------------------------------------------------- | :--- | :---- | :---- | | Revenue | 5 | 2,417 | 2,290 | | Gross profit | | 2,417 | 2,290 | | Other external expenses | 6 | 1,138 | 964 | | Sta costs | 7 | 1,095 | 995 | | Operating profit before amortisation and depreciation (EBITDA) before special items | | 184 | 331 | | Amortisation and depreciation | | 268 | 395 | | Operating profit (EBIT) before special items | | (84) | (64) | | Special items, costs | 8 | 251 | 235 | | Financial income | 9 | 6,543 | 2,167 | | Financial expenses | 10 | 212 | 865 | | Profit before tax | | 5,996 | 1,003 | | Tax on profit for the year | 11 | 137 | (97) | | Profit for the year | | 5,859 | 1,100 | | Proposed distribution of profit: | | | | | Proposed dividend per share is DKK 5.50 (2020: DKK 4.00 per share) | | 1,320 | 920 | | Transferred to equity reserves | | 4,539 | 180 | | Total distribution | | 5,859 | 1,100 | --- | (DKKm) | 2021 | 2020 | | :--------------------------------------------------------------------------------- | :---- | :---- | | Profit for the year | 5,859 | 1,100 | | Items that may be reclassified to the income statement when certain conditions are met: | | | | Fair value adjustments relating to hedging instruments | - | (1) | | Fair value adjustments relating to hedging instruments transferred to financial expenses | 14 | 21 | | Tax on items reclassified to the income statement | (8) | (1) | | Other comprehensive income, net of tax | 6 | 19 | | **Total comprehensive income** | **5,865** | **1,119** | 100 DSV Annual Report 2021 Parent Company financial statements ## 2021 Cash flow statement | (DKKm) | Note | 2021 | 2020 | | :------------------------------------------------------------------ | :--- | :----- | :------ | | Operating profit before amortisation and depreciation (EBITDA) before special items | | 184 | 331 | | Adjustments: | | | | | Share-based payments | | - | 23 | | Change in working capital etc. | | (583) | (10,083)| | Special items | | (185) | (14) | | Dividend received | | 5,746 | 1,630 | | Interest received | | 797 | 537 | | Interest paid, other | | (212) | (228) | | Income tax paid | | (477) | (34) | | **Cash flow from operating activities** | | **5,270** | **(7,838)** | | Purchase of intangible assets | 12 | (230) | (172) | | Purchase of other plant and operating equipment | 13 | (146) | (65) | | Acquisition and disposal of subsidiaries and activities | | 2,153 | 14,511 | | **Cash flow from investing activities** | | **1,777** | **14,274** | | **Free cash flow** | | **7,047** | **6,436** | --- | (DKKm) | 2021 | 2020 | | :-------------------------------------------------- | :----- | :------ | | Proceeds from borrowings | 1,522 | 6,756 | | Repayment of borrowings | (5,521)| (6,666) | | Repayment of lease liabilities | - | (18) | | Change in long-term receivables and borrowings, net | 15,069 | (1,729) | | Transactions with shareholders: | | | | Dividends distributed | (920) | (588) | | Dividends on treasury shares | 28 | 23 | | Purchase of treasury shares | (17,841)| (5,031) | | Sale of treasury shares | 2,150 | 2,357 | | **Cash flow from financing activities** | **(5,513)** | **(4,896)** | | **Cash flow for the year** | **1,534** | **1,540** | | Cash and cash equivalents 1 January | 6,160 | 4,622 | | Cash flow for the year | 1,534 | 1,540 | | Currency translation | 2 | (2) | | **Cash and cash equivalents at 31 December** | **7,696** | **6,160** | The cash flow statement cannot be directly derived from the balance sheet and income statement. 101 DSV Annual Report 2021 Parent Company financial statements ## 2021 Balance sheet | (DKKm) | Note | Dec 31, 2021 | Dec 31, 2020 | | :------------------------------------------------------------ | :--- | :----------- | :----------- | | **ASSETS** | | | | | **Intangible assets** | 12 | 4,991 | 4,918 | | Goodwill | | 2,161 | 2,161 | | Other intangible assets | | 2,830 | 2,757 | | **Tangible fixed assets** | 13 | 3,504 | 3,627 | | Other plant and operating equipment | | 3,504 | 3,627 | | **Financial assets** | | | | | Investments in Group entities | 20 | 33,610 | 30,761 | | Other receivables | | 6,332 | 6,572 | | Deferred tax asset | 18 | 1,393 | 1,419 | | Total non-current assets | | 49,830 | 47,297 | | **Current assets** | | | | | Inventories | | 14 | 14 | | Receivables | | | | | Trade receivables | | 1,674 | 1,584 | | Current receivables from group entities and other receivables | 14 | 16,312 | 17,126 | | Cash and cash equivalents | | 7,696 | 6,160 | | Total current assets | | 25,696 | 24,884 | | **TOTAL ASSETS** | | **75,526** | **72,181** | --- | (DKKm) | Note | Dec 31, 2021 | Dec 31, 2020 | | :-------------------------------------------------------------------- | :--- | :----------- | :----------- | | **EQUITY AND LIABILITIES** | | | | | **Equity** | | | | | Share capital | | 45 | 45 | | Share premium | | 1,648 | 1,648 | | Revaluation reserves | | 12 | 12 | | Other reserves | | 3,957 | 4,539 | | Treasury shares | | (19,377) | (2,524) | | Retained earnings | | 51,177 | 49,816 | | **Total equity** | | **37,462** | **53,536** | | **Non-current liabilities** | | | | | Financial liabilities | 16 | 17,678 | 13,325 | | Deferred tax liability | | 72 | 109 | | Other liabilities | | 1,464 | 1,451 | | Total non-current liabilities | | 19,214 | 14,885 | | **Current liabilities** | | | | | Financial liabilities | 16 | 7,020 | 4,255 | | Payables to Group entities and other payables | 17 | 12,054 | 4,140 | | Provisions | | 178 | 365 | | Total current liabilities | | 19,252 | 8,760 | | **TOTAL EQUITY AND LIABILITIES** | | **75,526** | **72,181** | 102 DSV Annual Report 2021 Parent Company financial statements ## 2021 Statement of changes in equity | (DKKm) | Share capital | Share premium | Revaluation reserves | Other reserves | Treasury shares | Retained earnings | **Total equity** | | :------------------------------------------------ | :------------ | :------------ | :------------------- | :------------- | :-------------- | :---------------- | :--------------- | | **Balance at January 1, 2020** | 45 | 1,648 | 12 | 7,761 | (455) | 49,649 | **58,560** | | Profit for the year | | | | | | 1,100 | 1,100 | | Other comprehensive income, net of tax | | | 19 | | | | 19 | | Dividends distributed | | | | | | (588) | (588) | | Dividends on treasury shares | | | | | 23 | | 23 | | Purchase of treasury shares | | | | | (5,031) | | (5,031) | | Sale of treasury shares | | | | | 2,357 | | 2,357 | | Change in other reserves | | | | (3,222) | | | (3,222) | | **Balance at December 31, 2020** | **45** | **1,648** | **31** | **4,539** | **(2,524)** | **49,816** | **53,536** | | Profit for the year | | | | | | 5,859 | 5,859 | | Other comprehensive income, net of tax | | | 6 | | | | 6 | | Proposed dividend for 2021 | | | | | | (1,320) | (1,320) | | Proposed dividend for 2020 | | | | | | (920) | (920) | | Purchase of treasury shares | | | | | (17,841) | | (17,841) | | Sale of treasury shares | | | | | 2,150 | | 2,150 | | Change in other reserves | | | | (4,539) | | 4,539 | 0 | | **Balance at December 31, 2021** | **45** | **1,648** | **37** | **0** | **(19,377)** | **51,177** | **37,462** | 103 DSV Annual Report 2021 Parent Company financial statements ## Notes ### Basis of preparation #### 1. Accounting policies The financial statements of the parent company DSV A/S are prepared in accordance with the Danish Financial Statements Act. The parent company has opted to prepare its financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. In addition, the parent company has chosen to supplement its financial statements with a cash flow statement and a statement of comprehensive income, which are prepared in accordance with IFRS. These financial statements are prepared in DKKm. #### 2. Changes in accounting policies There have been no changes in accounting policies during the year that have had a material impact on the financial statements. #### 3. Management judgements and estimates The preparation of financial statements requires management to make judgements and estimates concerning the future. Judgements and estimates are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The areas involving a higher degree of judgement and complexity are disclosed in Note 22 ‘Financial risks’. #### 4. New accounting regulations The International Accounting Standards Board (IASB) and the European Commission have issued a number of new and revised IFRS standards and IFRIC interpretations. Management has assessed the impact of these new/revised standards and interpretations that are effective for the year ended December 31, 2021, and has concluded that none of these have had a material impact on the financial statements. ### Income statement #### 5. Revenue Revenue comprises freight and logistics revenue from customers. Revenue is recognised when the service has been rendered. #### 6. Fees to auditors appointed at the Annual General Meeting This relates to the fees paid to PricewaterhouseCoopers for the audit of the annual report and other services rendered. | (DKKm) | 2021 | 2020 | | :------------------------------ | :--- | :--- | | Audit fee | 6 | 6 | | Other assurance services | 1 | 1 | | Tax advisory services | 0 | 0 | | Other services | 0 | 0 | | **Total fees to auditors** | **7**| **7**| #### 7. Sta costs | (DKKm) | 2021 | 2020 | | :------------------------------------ | :---- | :---- | | Salaries and wages | 985 | 905 | | Pension costs | 13 | 13 | | Social security costs | 97 | 77 | | Other staff-related costs | 0 | 0 | | **Total staff costs** | **1,095** | **995** | #### 8. Special items | (DKKm) | 2021 | 2020 | | :------------------------ | :--- | :--- | | Restructuring costs | 251 | 235 | | **Total special items** | **251**| **235**| 104 DSV Annual Report 2021 Parent Company financial statements #### 9. Financial income | (DKKm) | 2021 | 2020 | | :---------------------------------- | :---- | :---- | | Interest income from Group entities | 5,746 | 1,630 | | Interest income from other parties | 797 | 537 | | Other financial income | 0 | 0 | | **Total financial income** | **6,543** | **2,167** | #### 10. Financial expenses | (DKKm) | 2021 | 2020 | | :------------------------------------ | :--- | :--- | | Interest expenses on loans | 212 | 865 | | Other financial expenses | 0 | 0 | | **Total financial expenses** | **212**| **865**| #### 11. Income tax | (DKKm) | 2021 | 2020 | | :---------------------------------- | :--- | :--- | | Current tax | 137 | (97) | | Deferred tax | 0 | 0 | | **Total income tax** | **137**| **(97)** | ### Balance sheet #### 12. Intangible assets | (DKKm) | 2021 | 2020 | | :------------------------------------ | :--- | :--- | | Goodwill | 2,161| 2,161| | Other intangible assets | 2,757| 2,757| | **Cost at December 31, 2020** | **4,918**| **4,918**| | Additions | 230 | 172 | | Disposals | 0 | 0 | | **Cost at December 31, 2021** | **5,148**| **5,090**| | Amortisation at January 1, 2020 | (168)| (168)| | Amortisation charge for the year | 268 | 395 | | Disposals | 0 | 0 | | **Amortisation at December 31, 2021** | **(157)**| **(227)**| | **Net book value at December 31, 2021** | **4,991**| **4,863**| --- | (DKKm) | 2021 | 2020 | | :------------------------------------ | :--- | :--- | | Net book value at December 31, 2020 | 4,750| 4,750| | Net book value at December 31, 2021 | 4,991| 4,863| 105 DSV Annual Report 2021 Parent Company financial statements #### 13. Other plant and operating equipment | (DKKm) | 2021 | 2020 | | :---------------------------------------- | :--- | :--- | | Buildings | 0 | 0 | | Other plant and operating equipment | 3,504| 3,627| | **Cost at December 31, 2020** | **3,627**| **3,627**| | Additions | 146 | 65 | | Disposals | 0 | 0 | | **Cost at December 31, 2021** | **3,773**| **3,692**| | Amortisation at January 1, 2020 | (65) | (65) | | Amortisation charge for the year | 268 | 395 | | Disposals | 0 | 0 | | **Amortisation at December 31, 2021** | **(157)**| **(227)**| | **Net book value at December 31, 2021** | **3,504**| **3,400**| --- | (DKKm) | 2021 | 2020 | | :------------------------------------ | :--- | :--- | | Net book value at December 31, 2020 | 3,562| 3,562| | Net book value at December 31, 2021 | 3,504| 3,400| #### 14. Current receivables from group entities and other receivables | (DKKm) | 2021 | 2020 | | :------------------------------------------- | :----- | :----- | | Receivables from group entities | 14,943 | 15,224 | | Other receivables, including trade receivables | 1,369 | 1,902 | | **Total current receivables** | **16,312** | **17,126** | #### 15. Equity reserves | (DKKm) | 2021 | 2020 | | :-------------------------- | :--- | :--- | | Revaluation reserve | 37 | 31 | | Other reserves | 0 | 4,539| | **Total equity reserves** | **37**| **4,570**| 106 DSV Annual Report 2021 Parent Company financial statements #### 16. Financial liabilities | (DKKm) | 2021 | 2020 | | :---------------------------- | :---- | :---- | | Long-term borrowings | 17,678| 13,325| | Short-term borrowings | 7,020 | 4,255 | | **Total financial liabilities** | **24,698** | **17,580** | #### 17. Payables to Group entities and other payables | (DKKm) | 2021 | 2020 | | :----------------------------------------- | :----- | :----- | | Payables to Group entities | 10,116 | 2,769 | | Other payables, including trade payables | 1,938 | 1,371 | | **Total payables** | **12,054** | **4,140** | #### 18. Deferred tax asset | (DKKm) | 2021 | 2020 | | :---------------------------------- | :--- | :--- | | Deferred tax asset | 1,393| 1,419| | **Total deferred tax asset** | **1,393**| **1,419**| 107 DSV Annual Report 2021 Parent Company financial statements ### Supplementary information #### 19. Share option schemes The Group operates share option schemes. Under these schemes, employees can be granted options to purchase shares in DSV A/S at a predetermined price. The options are typically exercisable over a period of several years. The number of options granted, the exercise price, and the vesting periods vary depending on the specific scheme and the individual employee. The details of the outstanding share options as of December 31, 2021 and 2020 are as follows: | Scheme | Number of options | Average exercise price | Expiry date | | :------------------------- | :---------------- | :--------------------- | :------------ | | **2021** | | | | | Option Scheme 1 | 1,500,000 | DKK 300 | Dec 31, 2025 | | Option Scheme 2 | 2,000,000 | DKK 350 | Dec 31, 2026 | | **2020** | | | | | Option Scheme 1 | 1,800,000 | DKK 300 | Dec 31, 2025 | | Option Scheme 2 | 2,200,000 | DKK 350 | Dec 31, 2026 | The expense related to share-based payments in the parent company for 2021 and 2020 was DKK 0 million and DKK 23 million, respectively. #### 20. Investments in Group entities This note provides information on the Group's investments in its subsidiaries. | Subsidiary Name | Country of incorporation | Ownership percentage | | :-------------- | :----------------------- | :------------------- | | DSV Air & Sea A/S | Denmark | 100% | | DSV Road A/S | Denmark | 100% | | DSV Solutions A/S | Denmark | 100% | | DSV Global Logistics | United Kingdom | 100% | | DSV Panalpina | Switzerland | 100% | The carrying amount of investments in group entities as of December 31, 2021 and 2020 was DKK 33,610 million and DKK 30,761 million, respectively. 108 DSV Annual Report 2021 Parent Company financial statements #### 21. Derivative financial instruments The Group uses derivative financial instruments, primarily forward foreign exchange contracts and interest rate swaps, to manage its exposure to currency and interest rate fluctuations. These instruments are not used for speculative purposes. As of December 31, 2021, the Group had outstanding forward foreign exchange contracts with a notional value of DKK 5,000 million. These contracts mature within one year and are primarily used to hedge currency exposures related to anticipated foreign currency transactions. The fair value of these derivative financial instruments is recognized in the balance sheet. Changes in fair value are recognized in the income statement. As of December 31, 2021, the fair value of derivative financial instruments was: | (DKKm) | 2021 | 2020 | | :------------------------------------- | :--- | :--- | | Fair value of forward exchange contracts | 14 | 21 | | Fair value of interest rate swaps | 0 | 0 | | **Total fair value** | **14** | **21** | The gain/(loss) on derivative financial instruments recognized in the income statement for 2021 and 2020 was DKK 14 million and DKK 21 million, respectively. #### 22. Financial risks The Group is exposed to various financial risks, including currency risk, interest rate risk, credit risk, and liquidity risk. The Group manages these risks through various policies and procedures. **Currency risk** The Group operates internationally and is therefore exposed to currency fluctuations. The Group aims to minimize its exposure to currency risk by hedging its significant currency exposures using forward foreign exchange contracts. **Interest rate risk** The Group is exposed to interest rate risk on its borrowings. The Group aims to manage its interest rate risk by diversifying its sources of funding and by using interest rate swaps where appropriate. **Credit risk** The Group is exposed to credit risk on its trade receivables and other financial assets. The Group manages its credit risk by performing credit assessments of its customers and by obtaining credit insurance where appropriate. **Liquidity risk** The Group manages its liquidity risk by maintaining sufficient cash reserves and by having access to committed credit facilities. The following table shows the maturity profile of the Group’s financial liabilities: | (DKKm) | Less than 1 year | 1-3 years | 3-5 years | Over 5 years | Total | | :----------------------------------- | :--------------- | :-------- | :-------- | :----------- | :------ | | **December 31, 2021** | | | | | | | Financial liabilities | 7,020 | 5,678 | 5,000 | 7,000 | 24,698 | | **December 31, 2020** | | | | | | | Financial liabilities | 4,255 | 3,325 | 3,000 | 7,000 | 17,580 | 109 DSV Annual Report 2021 Parent Company financial statements #### 23. Contingent liabilities and security for debt As of December 31, 2021, the Group had no significant contingent liabilities or security for debt. #### 24. Related-party transactions The Group enters into transactions with related parties in the ordinary course of business. These transactions are conducted on an arm's length basis. The main related-party transactions are with Group entities. | (DKKm) | 2021 | 2020 | | :-------------------------------------- | :---- | :---- | | Loans to Group entities | 5,746 | 1,630 | | Interest income from Group entities | 5,746 | 1,630 | | Loans from Group entities | 10,116| 2,769 | | Interest expenses on loans from Group entities | 0 | 0 | 110# DSV Annual Report 2021 ## Parent Company financial statements 2021 ### Assets (DKKm) | Assets | 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) | Equity and liabilities | Note | 2021 | 2020 | | :---------------------------------- | :--- | :----- | :----- | | Share capital | | 240 | 230 | | Reserves and retained earnings | 15 | 57,192 | 38,345 | | **Total equity** | | **57,432** | **38,575** | | Borrowings | 16 | 27,176 | 6,674 | | Deferred tax liabilities | 18 | - | 29 | | **Total non-current liabilities** | | **27,176** | **6,703** | | Lease liabilities | 16 | - | 1 | | Borrowings | 16 | 1,714 | 4,135 | | Tax payables | | - | 75 | | Payables to Group entities and other payables | 17 | 19,095 | 22,133 | | **Total current liabilities** | | **20,809** | **26,344** | | **Total liabilities** | | **47,985** | **33,047** | | **Total equity and liabilities** | | **105,417** | **71,622** | ### Balance sheet ### Statement of changes in equity 2021 | (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. ## 1. Accounting policies As the Parent Company of the DSV Group, the financial statements of DSV A/S are separate financial statements disclosed as required by the Danish Financial Statements Act. The separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with IFRS as adopted by the EU and further requirements of the Danish Financial Statements Act. The accounting policies of the Parent Company are identical with the accounting policies for the consolidated financial statements, except for the following: * **Dividends from investments in subsidiaries** Dividends from investments in subsidiaries are recognised as income in the Parent Company’s income statement under financial income in the financial year in which the dividends are declared. * **Investments in subsidiaries in the Parent Company’s financial statements** Investments in subsidiaries are measured at cost. If there is any indication of impairment, investments are tested for impairment as described in the accounting policies applied by the Group. If the cost exceeds the recoverable amount, the investment is written down to this lower value. * **Currency translation** Foreign currency adjustments of balances considered part of the total net investment in enterprises which have a functional currency other than Danish kroner (DKK) are recognised in the income statement of the Parent Company under financials. ## 2. Changes in accounting policies All amendments to the International Financial Reporting Standards (IFRS) 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. ## 3. Management judgements and estimates 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: * **Investments in subsidiaries** 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 cash flows, growth, discount rates, etc. On 31 December 2021, no impairment indicators were identified. ## 4. New accounting regulations The IASB has issued a number of new standards and amendments not yet in 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. ## 5. Revenue (DKKm) | Revenue | 2021 | 2020 | | :-------------- | :---- | :---- | | Intra-group charges | 2,417 | 2,290 | | **Total revenue** | **2,417** | **2,290** | ## 6. Fees to auditors appointed at the Annual General Meeting | (DKKm) | 2021 | 2020 | | :------------------------------ | :--- | :--- | | Statutory audit | 9 | 5 | | Assurance engagements other than audits | 2 | - | | Tax and VAT advisory services | 1 | 1 | | Other services | 4 | 4 | | **Total fees** | **16** | **10** | ## 7. Staff costs For information on remuneration of the Executive Board and the Board of Directors, please see notes 6.2 and 6.3 to the consolidated financial statements. | (DKKm) | 2021 | 2020 | | :------------------------------- | :---- | :---- | | Remuneration of the Board of Directors | 7 | 6 | | Salaries etc. | 332 | 202 | | Intra-group salary charges etc. | 721 | 758 | | Defined contribution pension plans | 35 | 29 | | **Total staff costs** | **1,095** | **995** | | Average number of full-time employees | 507 | 437 | ## 8. Special items (DKKm) | Special items | 2021 | 2020 | | :------------------------------- | :--- | :--- | | Restructuring and integration costs | 165 | 235 | | Transaction costs relating to acquisition of Global Integrated Logistics | 86 | - | | **Total special items, costs** | **251** | **235** | ## 9. Financial income | (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). ## 10. Financial expenses | (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). ## 11. Income tax | (DKKm) | 2021 | 2020 | | :----------------------------------- | :--- | :---- | | Tax on profit for the year | 137 | (97) | | Tax on other comprehensive income | 8 | 1 | | **Total tax for the year** | **145** | **(96)** | Tax for the year is disaggregated as follows: | (DKKm) | 2021 | 2020 | | :----------------------------------- | :--- | :---- | | Current tax | 187 | 12 | | Deferred tax | (78) | (109) | | Tax adjustment relating to previous years | 28 | - | | **Total tax on profit for the year** | **137** | **(97)** | Tax on profit for the year specifies as follows: | (DKKm) | 2021 | 2020 | | :-------------------------------------- | :---------- | :---------- | | Calculated tax on profit for the year before tax | 22.0% | 22.0% | | Tax effect of: | | | | Non-deductible expenses/non-taxable income | (20.2%) | (31.7%) | | Tax adjustment relating to previous years | 0.5% | 0.0% | | **Effective tax rate** | **2.3%** | **(9.7%)** | Tax rate specifies as follows: ## 12. Intangible assets | (DKKm) | Soware | Soware in progress | Total | Soware | Soware 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** | ## 13. Other plant and operating equipment | (DKKm) | 2021 | 2020 | | :----------------------------------------- | :--- | :--- | | Cost at 1 January | 350 | 358 | | Additions for the year | 146 | 65 | | Disposals | (36) | (73) | | **Total cost at 31 December** | **460** | **350** | | **Total amortisation and impairment at 1 January** | 204 | 202 | | Amortisation and impairment for the year | 76 | 75 | | Disposals | (36) | (73) | | **Total amortisation and impairment at 31 December** | **244** | **204** | | **Carrying amount at 31 December** | **216** | **146** | ## 14. Current receivables from Group entities and other receivables | (DKKm) | 2021 | 2020 | | :------------------------------------- | :----- | :----- | | Receivables from Group entities | 18,138 | 20,177 | | Other receivables etc. | | | ## 15. Equity reserves Equity reserves are specified below. For a description of equity reserves, please see note 4.1 to the consolidated financial statements.## 16. Financial liabilities 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 | | :---------------------------- | :----- | :---- | | 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** | | 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 | | :------------------------------------------ | :---------------- | :-------- | :----------- | :---- | :---------- | :---------------- | :-------- | :----------- | :---- | :---------- | | | 2021 | | | | 2021 | 2020 | | | | 2020 | | 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** | ## 17. Payables to Group entities and other payables | (DKKm) | 2021 | 2020 | | :------------------------------------- | :----- | :----- | | Payables to Group entities | 18,364 | 21,552 | | Other payables | 731 | 581 | | **Payables to Group entities and other payables at 31 December** | **19,095** | **22,133** | ## 18. Deferred tax asset | (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)** | ## 19. Share option schemes DSV A/S has issued share options to key employees and members of the Executive Board of the Company. Please see note 6.2 to the consolidated financial statements for a list of current incentive share option schemes and a description of the assumptions used for the valuation of the share options granted in 2021. Total costs recognised in 2021 for services received but not recognised as an asset amounted to DKK 27 million (2020: DKK 23 million). The average share price for options exercised in the financial year was DKK 841.9 per share at the date of exercise. ### 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 | 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. ## 20. Investments in Group entities 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 | ## 21. Derivative financial instruments 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. ### External hedging instruments | (DKKm) | Contractual value | Maturity | Fair value | Of which recognised in income statement | Of which recognised in OCI | | :----- | :---------------- | :------- | :--------- | :-------------------------------------- | :----------------------- | | **2021** | | | | | | | Currency instruments | 26,137 | 2022 | (26) | (27) | 1 | | Interest rate instruments | 744 | 2022 | (7) | - | (7) | | **Total** | **26,881** | | **(33)** | **(27)** | **(6)** | | **2020** | | | | | | | Currency instruments | 6,353 | 2021 | 26 | - | (2) | | Interest rate instruments | 744 | 2021-2022 | (17) | - | (17) | | **Total** | **7,097** | | **9** | **-** | **(19)** | ## 22. Financial risks 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. | (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 | | :----------------------------------------- | :------- | :-------- | :-------- | :------------------------------- | :------- | :-------- | :-------- | :------------------------------- | | | 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | | 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** | ### Financial instruments by category 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. | Carrying amount (DKKm) | 2021 | 2020 | | :-------------------------------------------- | :----- | :----- | | **Financial assets:** | | | | Currency derivatives | 13 | 49 | | Receivables | 18,463 | 20,501 | | Other receivables | 24,062 | 17,284 | | Cash and cash equivalents | 7,696 | 6,160 | | **Total cash and receivables** | **50,221** | **43,945** | | **Financial liabilities:** | | | | Interest rate derivatives | 9 | 19 | | Currency derivatives | 39 | 23 | | Issued bonds measured at amortised cost | 6,681 | 6,674 | | Loans and credit facilities | 22,036 | 4,045 | | Lease liabilities | - | 1 | | Payables to Group entities etc. | 19,095 | 22,133 | | **Financial liabilities measured at amortised cost** | **47,812** | **32,853** | ## 23. Contingent liabilities and security for debt ### Contingent liabilities DSV A/S and the other Danish Group entities are registered jointly for VAT purposes and are jointly and severally liable for the VAT liabilities. DSV A/S is assessed jointly for Danish tax purposes with the other 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 Income tax and withholding tax payables under the joint taxation arrangement amounted to DKK 506 million (2020: payable of DKK 74 million), which is included in the financial statements of DSV A/S. ## Parent Company guarantees DSV A/S has provided guarantees for subsidiaries’ outstanding balances with banks and liabilities to leasing companies, suppliers and public 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. ## Related-party transactions DSV A/S has no related parties with control of the Group and no related parties with significant influence other than key management personnel – mainly in the form of the Board of Directors and Executive Board. ### Related-party transactions #### Board of Directors and Executive Board No transactions with related parties were made in the 2021 financial year other than ordinary remuneration, as described in notes 6.2 and 6.3 to the consolidated financial statements. ### Intra-group transactions No intra-group transactions were made in 2021 other than as stated in the income statement and notes. --- 110 DSV Annual Report 2021 **Parent Company financial statements 2021** DSV A/S Hovedgaden 630 2640 Hedehusene Denmark Tel. +45 4320 3040 E-mail: [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 Auditor's report on audited financial statements ParsePort XBRL Converter **Reporting class:** | Item | 2021 | 2020 | |---|---|---| | Issued Capital | DKK - | DKK - | | Other Reserves | DKK - | DKK - | | Retained Earnings | DKK - | DKK - | | Equity Attributable to Owners Of Parent | DKK - | DKK - | | Noncontrolling Interests | DKK - | DKK - | | Total Equity | DKK - | DKK - | **Additional Information:** * **Reporting Standard:** DHovedgaden * **Address:** 630 * **City:** 2640 * **Postal Code:** Hedehusene * **Country:** Denmark * **Country Code:** DK * **Sustainability Report Link:** https://www.dsv.com/en/sustainability-reports * **CVR Number:** 58233528 * **Company Name:** DSV A/S * **Registered Address:** Hovedgaden 630 * **Registered Postal Code:** 2640 * **Registered City:** Hedehusene **Auditor's Report:** * **Opinion:** 33771231 * **Basis for Opinion:** PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab