Strong Q3 results by DSV in an extraordinary market

Today’s highlights

• DSV is releasing a strong set of Q3 2021 numbers across all three divisions under extraordinary market conditions. The solid results are illustrated by an EBIT growth for the Group of 52.5 percent in Q3 2021 compared to the same period last year – excluding the impact of the acquisition of Agility’s Global Integrated Logistics business.
• DSV is reporting good progress in the integration of Agility’s Global Integrated Logistics business, which became part of DSV in August 2021. The operational integration is expected to be fully completed by Q3 2022.
• In another company announcement today, DSV is announcing an expansion of the Executive Board. Jens H. Lund will now take on a new role as Group COO and Deputy Group CFO Michael Ebbe is appointed new Group CFO.

Jens Bjørn Andersen, Group CEO: “In August, we completed the acquisition of Agility’s Global Integrated Logistics business and took over a well-run company and were joined by a team of skilled new colleagues. The integration is off to a good start, and in the coming period our two organisations will be merged into one. The transport markets continue to be characterised by disruption and imbalances causing extraordinary challenges for both our customers and us. Under the extraordinary market conditions, we are happy to report solid results across all divisions.”

Outlook for 2021

On 11 October 2021, we pre-released the Q3 2021 numbers and upgraded the outlook for 2021. The guidance for 2021 is reiterated and the expected special items regarding the integration are added:

• EBIT before special items is expected to be in the range of DKK 15,250-16,000 million
• The effective tax rate is expected to approximate 23%
• Transaction and integration costs (special items) is expected to be in the level of DKK 500 million

The integration progresses according to plan and with raised expectations to EBIT contribution

Once fully integrated, Agility’s Global Integrated Logistics business is expected to contribute approx. DKK 3,000 million (previously 2,800 million) to the combined EBIT before special items on an annual basis. The integration is expected to be completed by the end of Q3 2022 and the full-year EBIT effect is expected in 2023. The estimated EBIT impact includes the underlying result in Agility’s Global Integrated Logistics business and synergies from the consolidation of operations, logistics facilities, back-office functions and IT infrastructure.

Around 30% of the EBIT contribution is expected to impact the income statement in 2021, around 85% in 2022 and 100% in 2023.

Total transaction and integration costs are expected in the level of DKK 1,500 million. These costs will be charged to the income statement under special items.

Share buyback

A separate company announcement about the launch of a new share buyback programme of up to DKK 5,000 million has been issued today. The programme will run until 8 February 2022 or earlier if finalised.

DSV expands Executive Board

Due to DSV’s extensive growth in recent years and the growing demand for digitalisation and focus on the ongoing development and optimisation of the business, we hereby announce an expansion of our Executive Board.

Jens H. Lund has been the Group CFO since 2002 and will now take on a new role as Group COO with the responsibility for development and optimisation of the business, digital strategy, IT operations and the continued strengthening of the Group’s infrastructure and global network. Jens has been heavily involved in these areas over the years, and this change in management structure will allow Jens to increase focus on operations and drive and support further development.

Michael Ebbe is appointed new Group CFO. Michael Ebbe has been part of the DSV Group Finance management team since he joined the Group in 2007. Michael currently holds the position as Deputy Group CFO and will continue to be responsible for financial reporting, treasury, international shared service centres, compliance and insurance. Over the years, Michael has been involved in developing DSV’s finance department and played an important role in the integration of acquired companies.

Thomas Plenborg, Chairman of the Board of Directors: “We are strengthening the Executive Board to secure our continued ability to grow and develop our company at a high pace. At the same time, we ensure continuity in the management team. During the last almost 20 years, Jens Lund has been a fantastic Group CFO and has played an important role in the development of DSV. With his broad knowledge of the company and the logistics industry, Jens is the right person to head up areas as the continued development of our IT platform and optimisation of our business. Michael Ebbe has a long history with DSV and he has a strong cooperation with Jens Bjørn, Jens and the rest of the Executive Committee. In the Board of Directors, we are confident that Michael will continue to deliver high quality reporting and drive further progress in DSV.”

DSV’s executive board now consists of:

• Group CEO Jens Bjørn Andersen
• Group COO Jens H. Lund
• Group CFO Michael Ebbe

Additional information

For additional information, please read the three company announcements published today on the investor site.

Please find the new Group CFO Michael Ebbe's CV and a quote below.

Media kit and images

For pictures of the members of the Executive Board, please visit the DSV press room.

Contact

Media: Maiken Riise Andersen, phone +45 43 20 30 74, maiken.r.andersen@dsv.com

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CV, Michael Ebbe, new Group CFO in DSV

Quote by Michael Ebbe:

“I am proud and feel privileged to take on the role as Group CFO in DSV. I have been with DSV for 14 years and worked closely with Jens Lund over the years, so I know the company and the challenges of the job well. I look forward to contributing to the execution of the Group’s strategy together with the rest of the management team and I also look forward to the dialogue with investors and other stakeholders.”

Michael Ebbe’s career in DSV

In the spring of 2007, Michael Ebbe was contacted by DSV, as there was a wish to strengthen the management of the controller department in the Finance organisation. After only one job interview, at which Jens Lund also participated, Michael signed a contract of employment the following week. His first day of work with DSV was 1 May 2007.

• 2007: Controlling Manager.
• 2008: After a year as Controlling Manager, Michael was put in charge of Reporting & Controlling, Group Accounting, Treasury as well as SSC (Shared Service Centres), referring directly to Jens Lund.
• 2008: Responsible for the start-up of DSV’s RSSC (Regional Shared Service Centres) concept.
• 2011-12: Responsible for the start-up of DSV’s ISSC (International Shared Service Centres), which was established in Warsaw with 34 full-time employees. In 2021, ISSC employs 1500 people.
• 2013: Establishment of a Finance Transformation function, focusing on establishing and rolling out best practice finance processes.
• 2020: Appointed Deputy Group CFO, also with responsibility for Group Compliance and Group Insurance.

Key accomplishments in DSV

• Development of management reporting and follow-up (to the Executive Board and the Board of Directors)
• Winner of the Danish Award for Best Annual Report several times, most recently in 2020
• Establishment and development of the Shared Service concept (locally, regionally and internationally)
• Further development and roll-out of Master Data Governance
• Participation in Due Diligence and responsibility for the subsequent integration of several large acquisitions, i.a. UTi, Panalpina and, most recently, Agility’s Global Integrated Logistics
• Roll-out of financial reporting platform, including consolidation, reporting and budgeting
• Establishment of the Finance Transformation function
• Development of financial and project management in the Holding company (DSV A/S)
• Financial and IT risk management
• Continuous organisational development (while Michael has been employed with DSV, the company has grown from a global workforce of 19,000 to 75,000 employees)
• Centralisation of the treasury function – optimisation of cash management, credit control, exchange rate control and hedging.

Education and early career

• 1989-1991: Conscripted sergeant.
• 1991-1994: BSc (Economics), Copenhagen Business School.
• 1994-1997: MSc in Economics and Auditing, Copenhagen Business School.
• 1995: Started working as Auditing Assistant at Ernst & Young (EY) during his Master’s studies.
• 2003: State Authorised Public Accountant.

In EY, Michael worked with many different clients of different sizes and with different departments. However, he primarily worked with medium-sized, listed companies and was in charge of their auditing as well as the handling of the customer relation. At the same time, Michael taught different accounting courses and standards as a representative of both EY and FSR (Danish Auditors).

Michael Ebbe privately

Michael Ebbe is 51 years old, married to Janne Stegmann Ebbe and lives in Dragør, Denmark. Together, they have two girls – Elise (21) and Frida (17). In his free time, Michael enjoys spending time and travelling with his family. Michael furthermore likes to practice sports, particularly running, cycling and playing tennis.