DSV A/S

Ladies and gentlemen, welcome to the DSV-AS call for the H1-2026 Interim Financial Report. I'm Moritz, your course call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jens Lund, Group CEO. Please go ahead, sir.

Thank you very much, and welcome everybody to our Q2 earnings call. We will quickly get into it, and if we move to the next slide, I think we have it. Okay, now it's moving. We can see the agenda here for the call. It's the same agenda as usual. And I just want to make sure that you also read the forward-looking statements so that we have the compliance angle covered as well. If we look at the quarter, I think the integration has progressed as planned, which still basically on course to complete the integration in 2026 and harvesting the silages that we set out to do. The quarter has led to some changes in the management on the roadside in order, what can I say, to bring some experience in that can handle some of these topics that are related to the integration. But we will talk a little bit more about that when we come into the road division as well. and then when we come to the EBIT we delivered 6.3 billion I can remember on the capital markets day that many of you had said that we had to pass the 6 billion mark and therefore it's also good to see that we managed to do so and it's the strongest quarterly result that we've had actually since COVID so definitely seeing that the impact of the Schenker acquisition is starting to filter through and then of course we also see here Now we've upgraded our guidance or narrowed it so that we took a little bit of the bottom away. Still, of course, we have a range of 2 billion, not least due to the uncertainty that we see globally. If we look at the integration itself, we can see that we've now done 60 countries. Many of the countries we've done are the largest, and we only have a few larger countries outstanding. So we've reduced more than 8,000 white-collar employees and of course there's still going to be that impact of additional headcount reductions during the remaining part of the year as planned in the business case. The impact is basically that we more or less expect the same as we announced on the Capital Markets Day, so not much new to mention there. And then there's a graph on the right side trying to also just Visually explain how the impact of the synergies is going to pan out. The financial highlights, the GDP up in this market but also of course because of the integration impact. The EBIT also up and We see that of course we still continue also to invest in integration through the special items cost, but Ebbe definitely up. The Ips also up and I think we've seen now an improvement in debts for the first time since we acquired Schenker, so that's also very positive. The cash flow, Michael will talk a little bit more about it, but I think there's been a little bit of comments on the cash flow already. that it seems unusually high. I think if we do adjust for some of the one-off transactions and they have gone into the bank account and also the high freight rates I think the cash flow is as it should be and what could be expected. So at least when we look at it from the company side we are comfortable. On the full year guidance I mentioned that and you can see the graphs below. Switching on to ANC, I think here we also had some debate on the capital markets day and also with investors during the quarter because we had as announced seen the trough in Q1 and now we see a conversion ratio on 42% which was also what was planned for in the business case and definitely also the expectation I guess in the market as well. So really glad to see that we managed to deliver on that. The freight rates have increased a bit. That's of course very good for the yields because also the volatility in the market means that we can sell additional services but of course it has then the adverse impact on the volumes where certain markets are downtrending because of the crisis. So we also mentioned here in the call that we'd seen that the volumes they are a little bit lower than what we'd anticipated but I guess that's also something that is usual in an integration that you focus more on the integration and perhaps a little bit less on the customer side. So all in all our EBIT increased and I think the conversion rates are up, so very positive about the development on the Annecy side. If we take the GDP here, you can also see for air freight that we are almost at 5 billion, so 13% up. And if we look at the yields, 8,700 per ton is also in the high end. but I guess that's also due to many of these issues that you have with supply chains being disrupted. Our most important area is of course these days on air freight the technology vertical that continues to drive volumes. We have sanitized our portfolio on ANC and we have definitely seen that some perishable volumes but also some of the volumes that we had in relation to Chinese exports, they have declined or we've reduced those volumes. So that of course also has an impact on the yield because the yield on those volumes was very low. So moving on to the sea freight. Here we see GDP 4% down compared to last year. I have a situation where we are hovering around the 4,000 per TEU in GEP and volumes a little bit up compared to last year. But this is in particular where we have seen a weaker volume development that was planned for and we are taking initiatives to make sure that we drive volumes then in the right direction going forward on the ocean freight. but all in all on the ANC side I think we are on the right track and the division is going to deliver continued progress also in the coming quarters because we are very advanced on integration also on the ANC side. Coming into the world delivered an EBIT of 999 but we'd also disclosed to the market that 250 million of these they are of a one-off nature So you can say in reality 750. That's then more than last year, but not satisfactory. And what is then the explanation for this? Well, when we've been doing the integration, we integrate both large physical networks, but also large IT networks. And it's been more cumbersome when there's big networks to integrate. For example, in some of the countries mentioned here could be Germany, France, and the Netherlands. So in the beginning of the year in Germany we had performance issues on the network and had to compensate quite a bit in the first quarter but also into the second quarter. Actually our delivery quality in Germany is now up to what it was before GSV and Schenker were integrated so we have delivery in full on time. at the 95% range, which is basically the performance that we've normally seen in a market like this. So we've also had some of these issues in some of the other markets. Of course, we take learning from these integrations that we're doing so that we eliminate some of that risk. So there's no really structural change to the aspirations that we have enrolled. because it's something that we have to overcome and then when we are on the other side of it we actually have the same performance as we had before but we've then eliminated one network both on the IT side but also on the operational side and this puts us then in a much stronger position for driving the company forward So we've then added Brian Ejsing's experience to the road team. He's been with the company for many years and has significant experiences in these type of integrations and that's really what has helped us to make sure that the delivery performance goes back to normal. Historically, if we for example look at the KPI called delivery in full, delivered in full on time, for example in the Schenker network it has hovered between 93 and 95 percent very seldom at 95 and currently we are at 89 percent so there's still a little bit of work to be done but we expect to be within that range in September month and that means that then the extra cost that we have on the GDP level when you don't deliver in full on time you have additional cost because you have to get express trucks or do express deliveries or do some things that basically then compensate so that the customer they get a good experience and you don't need to do that it actually drives quite a bit of cost also on the terminals so that's what you can see in the numbers and this is then a little bit about the road so there's nothing structurally wrong with our plans this is very important for me to emphasize but there are some transactional issues in relation to the integration that we are dealing with. Then of course I think the highlight of the quarter is definitely CL. If we sit here and produce 1.5 billion in a quarter, a return on invested capital is moving very fast in the right direction. Last year it was somewhat lower and now we can really see that we are moving basically according to the planning that we have on CEL. Also growing quite a bit not least with the tech vertical here because we have this global footprint that not many of our competitors they have where you can serve a customer on CEL either in Australia or in Japan or basically in Mexico or in the US or Europe or wherever it's relevant, the Middle East. So that definitely benefits us quite a lot and with the run rate that we are having we're gonna produce an outcome on the EBIT level in the six billion range for the year and if you'd asked me a year ago about whether we would be able to do that I would probably not have been able to confirm that but really glad to see how it's developed the CL side and as I said you know we expect actually continued progress also in the coming quarters when it comes to CL so very positive indeed and on that note I will actually hand over to Michael who will then take you through the basically more detailed numbers cash flow etc so please go ahead Michael yes and jump to page number 11

Some highlights from the P&L in the first six months of 2026. Firstly, of course, as Jens already explained, our EBIT has increased quite a bit to 6.3 billion, which of course we are very happy with. Revenue increased 23%, so it's quite a dramatic increase in revenue, which I'll come back to the impact on our network and capital in a second. in this quarter. The conversion rate for the group increased to close to 31%. This is actually improving in all divisions, and Jens also highlighted, especially ERC has seen quite an improvement from last quarter as well. So we are definitely on the right track here as well. Net interest cost is a little bit higher. If you compare with us here, now we have the Schenker business in all three months in this quarter. And then we've increased also some of our leases, which is impacting the net interest cost in that line. Finally, I think you also elaborated a little bit on that, Jens, our earnings per share. We can see that it has increased yet again from last quarter as well. So this is some of the highlights here on the P&L side. Then we have over the years spoken a lot about the cash flow. And as you also started out by saying, we will come back to this here. It's clear that our cash flow is impacted by higher activity in the second quarter here compared to last quarter. but especially the increase in the rates has impacted our network in capital. So it's relatively high these days. On top of that, we have some property divestment, also coming back to the 250 million you just mentioned before, where we have not received the money yet. The transaction was before month end of June and now we still need to get the money here within the next, Thank you very much. Look forward to that, obviously. So it is under control, so to speak. Then we talk about our gearing ratio. It's a little bit down compared to last quarter. We are ending at 2.7, which was 2.8 the last time. So we have actually paid back debt and reduced net interest rate debt. So I think that's a lot about the cash flow, so that's great, and we actually still have the target to come back to a normalized between 2% and 3% on an annualized basis, but of course the rate is impacting us right now. Then on page number 13, this is the financial targets for 2030. I know we spent a lot of time going through those at the Capital Market Day a couple of months ago, so it's just some housekeeping to have them in here. They, of course, remain unchanged also on the roadside. So from a strategic point of view, the way that we are heading, there's no changes during the quarter, so we still continue. on the roadmap that was, you can say, presented at the Capital Markets Day. And of course, we are still confident that we will achieve the financial targets and we have plans to do so. So that's just to conclude on that one. Then we have, like Jens mentioned, we have actually narrowed our range of outlook. We have increased the bottom from 23 billion to 23.5 billion. So, of course, due to the fact that we've already now passed six months, some could argue that the range is still a little bit high, but I would also say that the uncertainty which we look into is also quite high. So, for the remaining part of the year, we expect the Middle East situation to be as is, and that's how it is, this is the information that we have right now, so we need to work with that as an assumption. Then for the EMC market we expect for the remaining part of the year also to grow low to mid single digits and also that the yield will slightly decrease on that one. For the road it's also a little bit low to single digit growth in the road market and then of course like Jens talked about that Brian works on the recovery plants in the areas just mentioned before. So overall we increased the bottom of our guidance and we are continually confident that we are on track to deliver on the guidance as promised to you guys. And then back to you Jens for some of the key takeaways.