Dsv A/s · OMXCOP:DSV
Dsv A/s — Q3 2014 Earnings Presentation
22 slides from Dsv A/s's earnings presentation, Oct 29, 2014
Slide 1: Q3 2014 Investor Presentation
Q3 2014 Investor Presentation Analyst conference call – 29 October 2014, 2.00 p.m. CET Presentation available at www.dsv.com
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond DSV A/S’ control, may cause actual development and results to differ materially from the expectations contained in the
Slide 3: Agenda
Agenda 1. Highlights Q3 2014 2. Business segments 3. Financial review, cash flow and capital allocation 4. Update on financial outlook 5. Q&A 3 | Q3 2014 Interim Financial Report – 29 October 2014
Slide 4: Highlights Q3 2014
Highlights Q3 2014 • Strong volume development in Q3, well ahead of market growth in all Divisions • 5.7% organic growth in EBIT before special items for Q3 2014 (5.8% YTD) • Air & Sea delivered 12.4% organic growth in EBIT for Q3 2014 (13.3% YTD) • Road still impacted by margin pressure – but we se
Slide 5: Business segments – Air & Sea
Business segments – Air & Sea • Sea freight volume growth of 7.6% in Q3 2014 (~1% growth from M&A in the quarter) • Air freight volume growth of 13.6% in Q3 2014 (~1% growth from M&A in the quarter) • Relatively stable profit per unit in a competitive market • 12.4% organic EBIT growth in Q3 2014 –
Slide 6: Gross profit per unit – Air & Sea
Gross profit per unit – Air & Sea Air Sea Gross profit per tonne, index (2011 = 100) Gross profit per TEU, index (2011 = 100) 104.6 103.5 105.5 100.0 101.5 101.3 99.0 103.3 102.5 103.1 102.9 102.1 98.1 95.9 98.4 100.0 99.9 99.1 Full year Full year Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2
Slide 7: Business segments – Road
Business segments – Road • 5% volume growth in Q3 2014 (~1% from M&A in the quarter) • Gross margin under pressure in a competitive market – We expect margin-stabilisation in the coming quarters – Growth in segments/activities with low GP margin • EBIT for Q3 2014 DKK 24 million lower than same peri
Slide 8: Business segments – Solutions
Business segments – Solutions • 5% growth in order lines in Q3 2014 – Positive development from both existing and new customers – Growth in e-commerce customer base • 1.4% organic decline in gross profit in Q3 2014 – Market remains competitive – Utilisation of warehouses still improving • EBIT on le
Slide 9: Financial review
Financial review Q3 YTD Growth details Growth details 2014 2013 Var. 2014 2013 Var. DKK million Org. M&A Fx Org. M&A Fx Net revenue 12,279 11,466 7.1% 6.0% 1.8% -0.8% 36,043 33,853 6.5% 5.7% 2.6% -1.9% Gross profit 2,609 2,522 3.4% 2.9% 1.1% -0.6% 7,682 7,479 2.7% 2.9% 1.8% -2.0% EBIT before special
Slide 10: Financial review – cash flow and debt
Financial review – cash flow and debt DKK million YTD 2014 YTD 2013 • Cash flow for the first 9 months of Profit before tax 1,440 1,584 2014 was in line with expectations Change in net working capital, incl. provisions -297 -305 Other adjustments 126 89 • Negative impact from increase in net working
Slide 11: Share buyback and dividend
Share buyback and dividend • New share buyback programme of DKK 300 million according to safe harbour method to be launched on 6 November 2014 and run until 29 January 2015 • Priority for use of free cash flow remains unchanged 1. Repayment of debt, if financial gearing is above 2.0x EBITDA 2. M&A 3
Slide 12: Outlook for 2014 is maintained, but low end of EBIT range adjusted upwards
Outlook for 2014 is maintained, but low end of EBIT range adjusted upwards DKK million Actual 2013 Outlook 2014 Growth % Gross profit 10,005 10,100 - 10,500 +1% to +5% EBIT before special items* 2,552 2,600 - 2,700 +2% to +6% Special items costs – Operational Excellence 2.0 300 Net financial expense
Slide 13: Market growth forecast (freight volume) – no changes
Market growth forecast (freight volume) – no changes DSV Market Full-year 2014 Volume growth year on year Q1-Q3 Q1-Q3 market forecast 2014 2014 Sea 9% 3 - 5% 3 - 5% Air 12% 2 - 4% 2 - 4% Road (Europe) 4% 1 - 3% 1 - 3% Solutions (Europe) 3% 1 - 3% 1 - 3% • The overall target for DSV is to gain market
Slide 14: To attend the teleconference, please dial one of the following phone numbers
To attend the teleconference, please dial one of the following phone numbers: Danish participants + 45 32 72 80 18 International participants UK +44 (0) 844 571 8957 US +1 866 682 8490 Int. +44 (0) 1452 555131 To ask questions press “* 1” 14 | Q3 2014 Interim Financial Report – 29 October 2014
Slide 15: Backup slides
Backup slides
Slide 16: Regional development Q3 2014 (DKK million)
Regional development Q3 2014 (DKK million) Gross profit* EBIT before special items* +3% 2,609 +5% 728 2,522 691 581 164 Nordic countries 587 -1% 22% -19% 23% 23% 203 29% 73 438 10% 450 17% +38% Southern Europe** 18% -3% 53 8% 265 36% 236 +12% 1,078 34% Other Europe / EMEA 1,021 41% 40% +6% 126 101 1
Slide 17: Regional development YTD 2014 (DKK million)
Regional development YTD 2014 (DKK million) Gross profit* EBIT before special items* +3% 7,682 +5% 1,975 7,479 1,880 1,809 477 Nordic countries 1,795 +1% 24% 24% 24% 511 27% -7% 214 1,348 11% Southern Europe** 1,400 -4% 18% 190 +12% 19% 10% 674 34% 652 +3% 3,093 35% Other Europe / EMEA 2,985 +4% 40%
Slide 18: Gross profit per unit – Air & Sea – absolute numbers
Gross profit per unit – Air & Sea – absolute numbers Air Sea Gross profit per tonne, DKK Gross profit per TEU, DKK 6,866 7,179 6,966 7,107 6,954 6,738 6,586 6,795 6,753 3,318 3,144 3,248 3,224 3,242 3,234 3,142 3,116 3,209 Full year Full year Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 F
Slide 19: Long-term financial targets
Long-term financial targets Targets Actual 2013 DSV – total • We expect to reach the targets within 5 Profit margin 7% 5.6% years counting from 2013 Conversion ratio 30% 25.5% ROIC (pre tax) 25% 21.1% • The targets are based on an assumption of annual transport market growth of at least Air & Sea 2%
Slide 20: Quarterly P&L details
Quaterly P&L details 20 | Q3 2014 Interim Financial Report – 29 October 2014
Slide 21: Quarterly P&L details
Quaterly P&L details 21 | Q3 2014 Interim Financial Report – 29 October 2014
Slide 22: Quarterly P&L details
Quaterly P&L details 22 | Q3 2014 Interim Financial Report – 29 October 2014