Annual Report 2012
Total Page:16
File Type:pdf, Size:1020Kb
Global Transport and Logistics 2012 Annual Report Global Transport and Logistics DSV is a global supplier of transport and logistics services. Contents The Group has operations in more than 70 countries and approx. 22,000 employees worldwide. DSV Air & Sea specialises in the handling of air and sea freight to destinations all over the world. The Division plans and executes shipments in a quick, efficient, safe and environmentally friendly manner and combines the means MANAGEMENT’S COMMENTARY of transportation when most appropriate. The Division has Global Transport and Logistics 2 approx. 6,000 employees. Growth in a difficult market 4 DSV Road offers transportation of full, part and groupage Financial highlights 6 loads all over Europe in a quick, efficient, flexible and envi- ronmentally friendly manner and provides good connections Strategy and financial targets 7 to the rest of the world. The Division has approx.10,000 Financial review 10 employees. DSV Air & Sea 16 DSV Solutions specialises in logistics services across the DSV Road 20 entire supply chain from design through freight manage- ment, customs clearance, warehousing and distribution DSV Solutions 24 to information management and e-business support. Risk management 28 DSV Solutions has approx. 5,000 employees. Corporate governance 31 Shareholder information 34 Corporate social responsibility 37 CONSOLidated fiNANCiAL statements Income statement 40 Statement of comprehensive income 40 Balance Sheet 41 REVENuE - BY REGiON Cash flow statement 42 Statement of changes in equity 43 Notes 45 ■ Nordic countries – 28% ■ Southern Europe – 17% ■ Other Europe – 39% MANAGEMENT’S COMMENTARY – continued ■ Americas – 7% ■ Asia – 9% The Executive Board and the Board of Directors 76 Statements Statement by the Executive Board and the Board of Directors 78 EBiTA - BY REGiON Independent auditors’ report 79 ■ Nordic countries – 27% Group STRuctuRE 80 ■ Southern Europe – 10% ■ Other Europe – 34% ■ Americas – 14% ANNuAL REport Of pARENT ■ Asia – 15% CD containing 2012 Annual Report of Parent and CSR Report of DSV 83 2 DSV 2012 annual report – ContentS Revenue* dKKM AiR & Sea Road SOLuTiONS 44,912 42% 47% 11% EBiTA* dKKM 2,540 54% 36% 10% Employees** NuMBER Of 21,932 30% 45% 25% * External revenue and EBITA after elimination of internal transactions ** Including Group functions DSV has 18,000 em- ployees and more than 300 branch offices and terminals across Europe STÆRK POSITION I MARKEDET DSV has 31 branch DSV has 81 branch offices in North offices and 2,300 em- America – Portland, ployees in 16 countries Oregon are the latest in the Asia/Pacific area additions In 2012 DSV Air & Sea In 2012 Argentina Logistica Ltda. was After the acquisition Chile and Peru became established in Brazil of Swift Freight DSV’s fully-fledged members network in Africa now of the DSV family includes 15 countries Countries in which DSV has its own companies DSV 2012 annual report – ContentS 3 Growth in a difficult market in 2012 dSV has defied a market showing lower than expected freight volumes. For DSV the formula for success is classic: Providing good services for the customers through hard work while maintaining a high focus on productivity and internal cost management. In a year marked by macro-economic uncertainty, a highly volatile transport market and general economic slowdown in many of the countries in which DSV operates, I am very pleased to state that, once again, DSV has achieved pro- gress and delivered a profit before tax that outperformed last year’s figures. Furthermore, our network has grown stronger in 2012 through strategic acquisitions in key growth markets, fortifying the Group’s position in the highly competitive transport industry. We have generated a rea- sonable return for our shareholders in 2012 and realised our target of allocating a considerable amount back to the shareholders through share buy-backs and dividends. declining market growth 2012 started off with cautious optimism and market expectations of stable growth in freight volumes. But ex- pectations went unfulfilled, and towards the end of 2012 we had to realise that overall freight volumes had declined compared to 2011. However, the market development differed across the regions. Asian and Northern European markets saw positive growth rates, whereas Europe – the most important market of DSV – was characterised by negative development with declining freight volumes, in Jens Bjørn Andersen some areas dropping by more than 10%. In particular im- CEO port levels to Southern Europe showed a negative growth DSV A/S trend in 2012, but as DSV has been able to gain market share in Southern Europe the negative development did not affect DSV as much as we might have feared. Southern Europe accounts for 10% of the consolidated EBITA of DSV fully-fledged members of the DSV network. Finally, DSV and the 2012 results for this region were only down by really sat foot on a new continent in 2012: Africa. We have DKK 7 million compared to 2011. Our employees in South- no doubt that there is a major development potential for ern Europe can rightly be proud of that. DSV in the African market. That is why we acquired part of Swift Freight which has operations in Dubai, India and China Acquisitions on the agenda as well as offices in 12 African countries. Until 2012, Africa and Latin America were almost non- We hope that 2013 will bring additional acquisitions to existent in the global DSV network. This prompted us to supplement our organic growth plans. take steps during 2012 to strengthen DSV in these growth markets. First, we established DSV Brazil and we expect Operational Excellence to develop the Brazilian company and open several new 2012 was a year characterised by cost saving initia- offices in Brazil in the next coming years. Secondly, we ac- tives. We spent part of the year implementing the savings quired the remaining shares in our joint venture companies measures of “Operational Excellence”; a project launched in Argentina, Chile and Peru, making these three countries to reduce the overhead costs of the Group. The project 4 DSV 2012 annual report – management’S C ommentary – growth in a DiffiCult market offer a powerful concept to existing as well as new cus- tomers. Several interesting projects have been launched and we ...fortifying the expect to accelerate the roll-out of two new products in Group’s position in the 2013: “DSV Daily Pallet” – a time-sensitive concept linking more than 200 European locations with daily departures, highly competitive transport and “DSV X-press” – worldwide express delivery of docu- ments and small shipments. Both products have consider- industry able potential and will be rolled out across the Group in the course of 2013. Corporate Social Responsibility at dSV DSV being a major global corporation, CSR has become an increasingly important part of our daily operations. CSR previously played a more peripheral role, but is now a highly important focus area and an integral part of the business processes at DSV. We demand a lot from ourselves and our suppliers and we are also met with increasing demands implied a number of staff cuts. Having to let competent from customers and business partners. It is a pleasure to employees go on that basis is a tough, but necessary deci- note that DSV has made progress in most areas in 2012 sion. The project also made it possible for us to consolidate towards achieving our ambitious CSR targets, as described our network and to close a number of locations in Europe in in the separate CSR Report of DSV. that connection. The project was completed at the end of the year and we expect to see the full impact of the sav- Employees – our greatest asset ings in 2013. Process optimisation and tight cost manage- We often say that our industry is a “people’s business” and ment have always been of high priority at DSV. This work nothing could be more true! Although IT, fully automated will continue in 2013, both locally in the individual countries systems and business processes play an increasingly impor- and at Group level through the establishment of central tant role, our greatest asset will always be our employees. functions in our new Shared Service Centre in Poland and We have loyal and skillful staff all of whom are bearers of other initiatives. our unique DSV culture, and it is fantastic to see that DSV is an attractive workplace to both young and more experi- divisions enced freight forwarders. In the DSV culture, a decentral- The three Divisions of DSV reported satisfactory results for ised organisational structure goes hand in hand with central the year. In particular the Air & Sea Division and the Road guidelines and the individual entities of the Group have a Division deserve recognition for the positive development large degree of autonomy to influence their performance. in a highly competitive transport market. Both Divisions That is a major asset of DSV which we must always safe- have strengthened their market position in 2012 and are guard. both still among the most profitable businesses in the in- This is also a good opportunity for me to thank all our dustry. The results reported by the Solutions Division for approx. 22,000 employees, who by their hard work have 2012 were adversely affected by surplus capacity in the contributed to DSV reporting good financial results for market and costs related to the implementation of new 2012 – Thank you! large customers. Management changes were made during the year and, with great commitment, the new Solutions Outlook for 2013 management has collaborated with the individual Solutions Since 2008 we have grown accustomed to the fact that countries on detailed action plans to improve performance uncertainty and volatility are part of the market conditions going forward.