CEO Konference, PwC, March Jens Bjørn Andersen, CEO

Transcription

1 CEO Konference, PwC, March 2019 Jens Bjørn Andersen, CEO

2 Content 1 History of DSV 2 Growth through M&A 3 DSV s growth- and acquisition strategy 4 Q&A 2 PwC CEO Konference, March 2019

3 It all started in in Skuldelev DSV was founded by 10 independent trucking companies 3 PwC CEO Konference, March 2019

4 DSV anno 2019

5 A strong global transport and logistics network EMEA 458 offices 405 logistics & cross-dock facilities (4,600,000 sqm) 34,000 employees 320,000 tonnes of air freight (export) Americas 545,000 TEU (export) 100 offices 38 logistics & cross-dock facilities (625,000 sqm) 7,700 employees 30 million shipments APAC 101 offices 73 logistics & cross-dock facilities (500,000 sqm) 160,000 tonnes of air freight (export) 5,700 employees 160,000 TEU (export) 220,000 tonnes of air freight (export) 400,000 shipments 750,000 TEU (export) 5 PwC CEO Konference, March 2019

6 Competitive landscape Global top 20 freight forwarders based on 2017 revenue (billion USD) DHL Logistics (DE) 1 30,8 Kuehne + Nagel (CH) 2 22,6 DB Schenker (DE) 3 17,8 C. H. Robinson (US) 4 13,5 (DK) 5 11,4 XPO Logistics (US) 6 10,4 UPS (US) 7 8,0 CEVA Logistics (NL) Expeditors (US) J. B. Hunt (US) Dachser (DE) Sinotrans (CN) SNCF Geodis (FR) Panalpina (CH) Kintetsu (JP) Gefco (FR) Yusen Logistics (JP) Rhenus & Co. (DE) Hub Group (US) Agility Logistics (KW) ,0 6,9 6,8 6,8 6,6 5,8 5,6 4,7 4,5 4,2 4,1 4,0 3,9 DSV is ranked fifth largest on a global scale The market is fragmented and DSV s market share is ~2% It is estimated that the top 20 companies control 30-40% of the total freight forwarding market Source: Journal of Commerce, April 2018,DSV estimates 6 PwC CEO Konference, March 2019

7 Background for DSV's M&A activities Why do we pursue M&A? Positive track record in acquiring and integrating less well-run companies to reach DSV performance level A trend of increased consolidation in the transport industry, creating larger players (one-stop shop) Strengthen international position and expand global network Growth organic and through acquisitions Obtain a clean structure and avoid conglomerate discount Business model Rented rather than owned equipment (asset light) Own locations vs. agents/business partners Harvest synergies (in operations and administration) Economies of scale 7 PwC CEO Konference, March 2019

8 A global network created through organic growth and M&A 13% 20% Breakdown of EBIT by division 67% Air & Sea Road Solutions Breakdown of EBIT by geography EMEA 3% 38% Americas APAC 59% 100% 100% DKKm Revenue 33 DKKm EBIT ,694 DKKm Revenue 98 DKKm EBIT 19,478 DKKm Revenue 854 DKKm EBIT 31,972 DKKm Revenue 1,504 DKKm EBIT 37,435 DKKm Revenue 1,936 DKKm EBIT 67,747 DKKm Revenue 3,475 DKKm EBIT 79,053 DKKm Revenue 5,450 DKKm EBIT 10 independent hauliers establish DSV DSV acquires several Danish competitors DSV acquires Samson Transport DSV acquires DFDS Dan Transport Group DSV acquires Frans Maas DSV acquires ABX LOGISTICS DSV acquires UTi Worldwide 8 PwC CEO Konference, March 2019

9 Value through acquisitions Development of ROIC (DKKm) DSV acquires ABX Logistics DSV acquires UTi Worldwide 30% ,8% 26,7% 25% 23,4% ,7% 19,7% 21,2% 21,1% 21,8% 21,5% 20% Invested capital ,2% 12,9% 16,8% 15% ROIC before tax 10% % % 9 PwC CEO Konference, March 2019

10 Integration how do we do The DSV formula Take control Stay in control of the M&A process from the preliminary analysis and until the integration is completed Prepare the business plan Prepare the business plan and make sure that all involved commit to the plan Implement the strategy Carry the integration in line with the plan 10 PwC CEO Konference, March 2019

11 Take Control Key elements of DSV integrations Appointing the new management is a top priority Fast and complete integration of acquirees No parallel organisations/brands in the market Acquirees transferred to the DSV IT platform "Double housekeeping" is not accepted Only one management team Only one administration Only one location Don t run two separate organisations 11 PwC CEO Konference, March 2019

12 Prepare the business plan Accountability and ownership is key Initially the business case is decided on top level with input from key countries Post merger each country prepares their own business case and report to HQ bottom up approach All countries take ownership of their individual business case and will be held accountable for achieving the synergies Monthly reporting from all countries to the HQ on the progress and status of the business case 12 PwC CEO Konference, March 2019

13 Country Division / Group functions Group Implement the strategy Pre-merger Strategic fit High-level business case Valuation Price negotiation Legal agreements Financing Integration management Business case follow up Business case input System / process analysis High level integration planning System verification Detailed planning and business case Integration execution High level integration planning Detailed planning and business case Integration execution Post-merger 13 PwC CEO Konference, March 2019

14 Q&A 14 PwC CEO Konference, March 2019