DSV A/S

Ladies and gentlemen, welcome to the DSV Q3 2026 conference call. I'm Moritz, the call's 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 one on your telephone. For operator assistance, please press star and zero. 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.

Good morning and welcome to our Q3 call. We are as usual, Michael and I, to present the results and I'll go through some of the first slides here and then later on, Michael, he will cover some of the other points on the On the agenda. So let's quickly go into it and we can start basically by I think the most important topic for many of you during the quarter. We can say that the service levels on road, they are back on track and the quality issues that we had, they are resolved. But of course it has had the consequence that our synergies will be realized a little bit later on the roadside because we've had to have focus on solving those issues. In general, on group level, the GDP is up 2.3%. When we made the business plan for acquiring Schenker, we said we were going to lose certain volume or GDP at the end of the day. And now, let's say in the Q3, it's really great to see that we're back on the growth trajectory when it comes to GDP. On the EBIT side we've grown significantly more because of course the synergies that we realize drives a higher conversion and I mean at the end of the day also the EPS has come up and we're right now at 11.5% growth so we also see that it trickles all the way down to the bottom. This has led to a situation where we are now going into the fourth quarter, so we've narrowed our guidance. We've done this of course because normally you start the year with a broader guidance and now we have more certainty when it comes to the result. So the guidance is now between 24 and 25 billion DKK in EBIT. If we look at the cash flow, we've delivered a solid cash flow here in the quarter, even if the freight rates are still elevated, not least on ocean freight. And we've started the first share buyback program since we acquired Schenker. So all in all, that were some of the highlights from Q3. Just wanted to say a few words on the integration as well. I think we are continuing as per plan. There's only a few countries outstanding, no major countries left on the integration and much of the customer integration also done. So good progress on that one. Of course, then we just talked about the issues that we've had on road that leads to a little delay in the realization of the synergies. So that will happen now and be finalized in 2027. Basically, the expected outcome and also the costs in relation to remain the same. But of course, a little bit delayed also on the special items into 2027. If we look at the financial highlights for the quarter, for the group, I think the earnings growth we just talked about and I think also that the GEP has grown. This is something that we are very focused on here in the headquarter, that we add more value to our customers and of course then also that we convert that into solid growth and the operational result. I would say that the ANC division has delivered as expected and CL has delivered a very solid result, I should say. And then of course the road results, they are clearly affected by the quality issues that we've had. The cash flow for the quarter is 6.4 billion, and I had already talked about the revision or basically the narrowing of our guidance, so that's really the financial highlight. If we look at ANC, I think one thing that is important, and we have also just added a slide on global products, that used to be part of the results for the divisions. And therefore, if you look here now, you will say, well, the gross profit has grown 0.2%. But if we'd adjusted for the GP that we've taken out on ANC, actually we've grown 2.8% year over year. But that's always what happens when you move some of the volumes around, that it's a little bit blurry. What's the baseline and what's the actual figures? And are they fully comparable? So we just added this information on the right side here. If we look at basically the conversion ratio, it continues to increase and we are aspiring to get up to the 50% target. Also during the next year we will definitely see an impact of the continued work we do on productivity. And then of course the EBIT margin also trending towards the 10%. If we look at air freight, we grew the GDP 4% actually during the quarter. We did shred still. We'd had this where we sanitized the portfolio and this actually continued a little bit into July. After July basically we finished this and I would say the general trend on the air freight is that we've seen The volumes into Europe are still under pressure and not least the volumes related to automotive. On the other side of course we've seen progress on the technology vertical while we've grown our volumes and as you can see also the yield at a Very solid level, almost 9,000 per ton. And overall, as I said, the GP has increased by 4%, so we are quite happy about that. If we look at the ocean freight, the GP has Thank you for watching. What we are working on right now is we are very much focused on the commercial activity in the ocean for it to make sure that we swing the trend round and I'll say both for air and for ocean we've seen that we are slowly getting into a situation where we've basically leveled out and we should hopefully during the next quarter start to see the inflection point where we get growth. The yield is at 4,100 kroner at the end of the quarter. So basically if you look over the cycle it's more or less the same as we had Q3 2025. and basically the composition of VAS and freight markup is also in the one-third, two-third range, so one-third is like the freight markup and two-thirds is the VAS.

Then we come to road.