DSV A/S, Hovedgaden 630 , 2640 Hedehu sene , Denmark , tel. +45 43 20 30 40 , CVR No. 58 23 35 28 , www.dsv.com.
DSV Group
We provide and manage supply chain solutions for thousands of companies every day – from the small family run business to the large global corporation.
Our reach is global, yet our presence is local and close to our customers. Approximately 75,000 employees in more than 80 countries work passionately to deliver great
customer experiences and high-quality services. Read more at www.dsv.com
INTERIM FINANCIAL REPORT
Q3 2023
Company Announcement No. 1065
24 October 2023
Selected key figures and ratios for the period 1 January - 30 September 2023
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Key figures (DKKm)
Revenue
35,576
60,560
114,257
184,434
Gross profit
10,649
13,538
33,371
40,493
Operating profit (EBIT) before special items
4,396
6,506
13,773
20,455
Special items, costs
-
456
-
1,117
Profit for the period
2,808
4,426
9,470
13,882
Adjusted earnings for the period
2,864
4,819
9,652
14,899
Adjusted free cash flow
10,803
16,763
Ratios
Conversion ratio
41.3%
48.1%
41.3%
50.5%
Diluted adjusted earnings per share of DKK 1 for the last 12
months
63.1
78.8
Jens Bjørn Andersen, Group CEO: “In markets characterised by soft freight volumes and declining rates, we delivered solid results during
the first nine months of 2023. The results reflect our flexible business model and, not least, our dedicated employees, who continue to
deliver good customer service and efficiently manage our capacity. A real recovery in global freight volumes does not seem to materialise
in 2023, but based on the performance so far, we raise the lower end of our 2023 EBIT guidance.
Finally, I will add a comment to the recently announced changes to the Executive Board, which will have effect in September 2024. This will
not impact our operations or the execution of our strategy. It will be business as usual, and in the senior management team we are
committed to securing a good handover process.”
Outlook for 2023
Based on our performance in the first nine months of 2023 and our expectations for Q4 2023, we narrow the full-year outlook for 2023 as
follows:
• EBIT before special items is expected to be in the range of DKK 17,500-18,500 million (previously DKK 17,000-18,500 million).
Share buyback
A separate announcement about the launch of a new share buyback programme of up to DKK 2.5 billion is issued today. The programme
will be concluded no later than 31 January 2024.
Contacts
Investor Relations: Flemming Ole Nielsen, tel. +45 43 20 33 92, flemming.o.nielsen@dsv.com
Media: Christian Krogslund, tel. +45 43 20 41 28, christian.krogslund@dsv.com
Yours sincerely,
Page 2 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Interim Financial Report
Q3 2023
Keeping supply chains flowing in a world of change
Page 3 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Contents
Financial highlights ......................................................................................................................... 4
Management’s commentary ............................................................................................................ 5
Air & Sea ........................................................................................................................................... 9
Road ................................................................................................................................................ 12
Solutions ........................................................................................................................................ 14
Interim financial statements .......................................................................................................... 16
Notes to the interim financial statements .................................................................................... 21
Statement by the Board of Directors and the Executive Board .................................................. 24
Page 4 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Financial highlights
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Results (DKKm)
Revenue
35,576
60,560
114,257
184,434
Gross profit
10,649
13,538
33,371
40,493
Operating profit before amortisation and depreciation (EBITDA)
before special items
5,724
7,774
17,687
24,151
Operating profit (EBIT) before special items
4,396
6,506
13,773
20,455
Special items, costs
-
456
-
1,117
Net financial expenses
629
106
1,147
951
Profit for the period
2,808
4,426
9,470
13,882
Adjusted earnings for the period
2,864
4,819
9,652
14,899
Cash flows (DKKm)
Operating activities
14,499
19,493
Investing activities
(1,664)
(495)
Free cash flow
12,835
18,998
Adjusted free cash flow
10,803
16,763
Share buyback
(11,441)
(13,157)
Dividends distributed
(1,424)
(1,320)
Cash flow for the period
(1,341)
3,974
Gross investment in property, plant and equipment
1,539
795
Financial position (DKKm)
DSV A/S shareholders’ share of equity
70,179
80,003
Non-controlling interests
270
226
Equity total
70,449
80,229
Balance sheet total
150,673
174,137
Net working capital
3,186
8,636
Net interest-bearing debt
32,333
27,277
Invested capital
99,791
106,713
Financial ratios (%)
Gross margin
29.9
22.4
29.2
22.0
Operating margin
12.4
10.7
12.1
11.1
Conversion ratio
41.3
48.1
41.3
50.5
Effective tax rate
25.5
25.5
25.0
24.5
ROIC before tax
17.9
24.7
Return on equity
17.5
22.1
Solvency ratio
46.6
45.9
Gearing ratio
1.4
0.9
Share ratios
Earnings per share of DKK 1 for the last 12 months
62.1
73.6
Diluted adjusted earnings per share of DKK 1 for the last 12 months
63.1
78.8
Number of shares issued (’000)
219,000
234,000
Number of treasury shares (’000)
7,655
10,521
Average number of shares issued (’000) for the last 12 months
211,995
231,310
Diluted number of shares (’000) at 30 September
212,444
225,510
Average diluted number of shares (’000) for the last 12 months
214,110
233,985
Share price end of period (DKK)
1,319.0
896.0
Non-financial data
Employees (FTE) at 30 September
75,188
76,715
For definition of key figures and ratios, please refer to page 83 of the DSV Annual Report 2022.
For definition of non-financial data, please refer to the DSV Sustainability Report 2022.
Page 5 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Management’s commentary
The DSV Group achieved solid financial results in the first nine months of 2023 in a competitive market
with lower freight volumes and gradual normalisation of the freight markets. As expected, the financial
results did not match the record earnings of the previous year: gross profit was down 15.1% and EBIT
before special items was down 30.6% (in constant currencies).
During the period, we have continued our focus on cost control and pricing discipline and maintained a
high cash conversion ratio.
Results for the period
Revenue
For the first nine months of 2023, revenue amounted to DKK
114,257 million, compared to DKK 184,434 million last year. In
constant currencies, revenue declined 36.2% compared to the
same period last year. In Q3 2023, revenue declined 38.1%.
Revenue and growth by division compared to the same period
last year are specified below:
(DKKm)
Q3 2023
Growth*
YTD 2023
Growth*
Air & Sea
21,912
(48.7%)
71,118
(47.1%)
Road
9,036
(10.9%)
28,780
(6.6%)
Solutions
5,538
(0.8%)
17,061
(3.4%)
Group and
eliminations
(910)
(2,702)
Total
35,576
(38.1%)
114,257
(36.2%)
* Growth in constant currencies
In the first nine months of 2023, the Air & Sea division saw a
decrease in revenue due to significantly reduced freight rates
and lower volumes compared to the same period last year.
Freight volumes showed signs of improvement during Q3 2023;
however, freight volume growth remained negative compared to
same period last year.
The Road division saw a decline in revenue in the first nine
months of the year. This development accelerated in Q3 2023,
driven by both lower volumes and lower freight rates.
Solutions has seen an improving trend during 2023 and
recorded revenue close to last year’s level in Q3 2023.
Revenue by division, YTD 2023
Gross profit
For the first nine months of 2023, gross profit amounted to DKK
33,371 million, compared to DKK 40,493 million last year. In
constant currencies, gross profit declined 15.1% compared to
the same period last year. For Q3 2023, gross profit declined
17.0%.
Gross profit and growth by division compared to the same
period last year are specified below:
(DKKm)
Q3 2023
Growth*
YTD 2023
Growth*
Air & Sea
6,210
(27.7%)
19,991
(24.5%)
Road
1,924
(1.1%)
5,923
0.6%
Solutions
2,381
7.6%
7,039
4.0%
Group and
eliminations
134
418
Total
10,649
(17.0%)
33,371
(15.1%)
* Growth in constant currencies
In the Air & Sea division, the ongoing normalisation of gross
profit yields and decline in freight volumes affected the gross
profit for the first nine months of 2023. Gross profit yields
remained at strong levels in H1 2023, but as expected, Q3 2023
was impacted by lower yields, especially for air freight.
During the first nine months of 2023, the Road division achieved
gross profit on level with last year, and the Solutions division
achieved growth despite soft market conditions.
In the first nine months of 2023, gross profit declined across
most regions, most significantly in APAC. The Middle East, on
Page 6 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
the other hand, stood out as the only region to achieve growth in
the period.
Gross profit by division, YTD 2023
The gross margin for the Group was 29.2% for the first nine
months of 2023, compared to 22.0% for the same period last
year. The higher gross margin was driven by all divisions, most
significantly the Air & Sea division, due to the substantial decline
in air and sea freight rates (pass through elements recognised
as revenue) and the high gross profit yield levels.
EBIT before special items
EBIT before special items amounted to DKK 13,773 million for
the first nine months of 2023, compared to DKK 20,455 million
last year. In constant currencies, EBIT before special items was
down 30.6%.
For Q3 2023, EBIT before special items declined 28.2%.
Compared to same period last year, EBIT before special items
was negatively impacted by currency translation of DKK 383
million for Q3 2023 and DKK 616 million for the first nine months
of 2023.
EBIT and growth by division compared to same period last year
are specified below:
(DKKm)
Q3 2023
Growth*
YTD 2023
Growth*
Air & Sea
3,281
(35.8%)
10,481
(35.7%)
Road
522
1.4%
1,542
(1.4%)
Solutions
584
(0.1%)
1,745
(16.9%)
Group and
eliminations
9
5
Total
4,396
(28.2%)
13,773
(30.6%)
* Growth in constant currencies
The decline in EBIT before special items was mainly due to
lower gross profit in Air & Sea.
The conversion ratio for the Group reached 41.3% for the first
nine months of 2023, compared to 50.5% for the same period
last year. In line with our flexible business model, we have
implemented cost-saving initiatives to adjust our capacity,
mainly in the Air & Sea division. These initiatives were partly
offset by inflation.
In the first nine months of 2023, most regions recorded lower
EBIT before special items compared to the same period last
year. However, as was also the case for gross profit, the Middle
East recorded growth for the period.
EBIT by division, YTD 2023
Page 7 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Growth 2022 – 2023
(DKKm)
Q3 2022
Currency
translation
Q3 2022 in
constant
currencies
Growth
Growth %*
Q3 2023
Revenue
60,560
(3,077)
57,483
(21,907)
(38.1%)
35,576
Gross profit
13,538
(702)
12,836
(2,187)
(17.0%)
10,649
EBIT before special items
6,506
(383)
6,123
(1,727)
(28.2%)
4,396
Gross margin (%)
22.4
29.9
Operating margin (%)
10.7
12.4
Conversion ratio (%)
48.1
41.3
(DKKm)
YTD 2022
Currency
translation
YTD 2022 in
constant
currencies
Growth
Growth %*
YTD 2023
Revenue
184,434
(5,220)
179,214
(64,957)
(36.2%)
114,257
Gross profit
40,493
(1,168)
39,325
(5,954)
(15.1%)
33,371
EBIT before special items
20,455
(616)
19,839
(6,066)
(30.6%)
13,773
Gross margin (%)
22.0
29.2
Operating margin (%)
11.1
12.1
Conversion ratio (%)
50.5
41.3
* Growth in constant currencies
Financial items
Financial items totalled a net expense of DKK 1,147 million for
the first nine months of 2023, compared to a net expense of
DKK 951 million for the same period last year. The higher net
financial costs compared to last year were mainly related to the
increase in lease liabilities and foreign exchange losses (on
intercompany balances and devaluation of currencies).
(DKKm)
YTD 2023
YTD 2022
Interest on lease liabilities
623
518
Other interest cost, net
231
290
Interest on pensions
28
17
Foreign exchange adjustments
265
126
Net financial expenses
1,147
951
Tax on profit for the period
In line with expectations, the effective tax rate came to 25.0% for
the first nine months of 2023, compared to 24.5% for the same
period last year. The increase was primarily driven by higher
withholding tax on upstreaming dividends from subsidiaries.
Profit for the period
Profit for the first nine months of 2023 was DKK 9,470 million,
compared to DKK 13,882 million for the same period of 2022.
The decline was mainly due to the lower EBIT for the period.
This was partly offset by the absence of special items in 2023
(no restructuring costs related to integrations in 2023).
Diluted adjusted earnings per share
Diluted adjusted EPS (trailing 12-months) decreased by 19.9%
compared to an extraordinarily high level last year and came to
DKK 63.1 per share (2022: DKK 78.8 per share). The decline
was due to the decrease in adjusted earnings but was partly
offset by an 8.5% decrease in number of outstanding shares
following the Group’s share buy-back programmes.
Cash flow
Cash flow statement – summary
(DKKm)
YTD 2023
YTD 2022
EBITDA before special items
17,687
24,151
Change in net working capital
2,208
12
Tax, interests, change in provisions, etc.
(5,133)
(4,147)
Special items, paid
(263)
(523)
Cash flow from operating activities
14,499
19,493
Cash flow from investing activities
(1,664)
(495)
Free cash flow
12,835
18,998
Cash flow from financing activities
(14,176)
(15,024)
Cash flow for the period
(1,341)
3,974
Free cash flow
12,835
18,998
Acquisition of subsidiaries (reversed)
607
-
Special items (reversed)
263
523
Repayment of lease liabilities
(2,902)
(2,758)
Adjusted free cash flow
10,803
16,763
Page 8 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
The decline in adjusted free cash flow for the first nine months of
2023 was attributable to lower EBITDA and higher tax payments
related to last year’s earnings but was offset by a positive
development in net working capital.
Cash flow from investing activities came to a cash outflow of
DKK 1,664 million for the first nine months of 2023 and was
impacted by a few small acquisitions and investment in
warehouse equipment and automation technology.
For the first nine months of 2023, cash flow from financing
activities was a cash outflow of DKK 14,176 million, primarily
related to share buyback and payment of dividend.
Net working capital
On 30 September 2023, the Group’s net working capital (NWC)
was DKK 3,186 million, compared to DKK 8,636 million on 30
September 2022, a decline of DKK 5,450 million.
The significant improvement in NWC can mainly be attributed to
a combination of lower average freight rates and lower volumes
in the Air & Sea division.
Relative to estimated full-year revenue, funds tied up in NWC
were 2.2% on 30 September 2023 (30 September 2022: 3.5%).
Capital structure and finances
DSV A/S shareholders’ share of equity
DSV shareholders’ share of equity was DKK 70,179 million on
30 September 2023 (DKK 71,519 million on 31 December
2022). The slight decrease was primarily driven by allocations to
shareholders offset by profit for the period.
On 30 September 2023, the Company’s portfolio of treasury
shares was 7,655,105 shares. On 24 October 2023, the portfolio
of treasury shares was 8,216,900 shares.
The solvency ratio excluding non-controlling interests was
46.6% on 30 September 2023 (30 September 2022: 45.9%).
The development in equity since 1 January 2023 is specified
below:
(DKKm)
YTD 2023
YTD 2022
Equity at 1 January
71,519
74,103
Profit for the period (attributable to
DSV shareholders)
9,406
13,800
Currency translation, foreign
enterprises
(193)
6,151
Allocated to shareholders
(12,865)
(14,477)
Sale of treasury shares
1,745
461
Other equity movements
567
(35)
Equity end of period
70,179
80,003
Net interest-bearing debt
Net interest-bearing debt amounted to DKK 32,333 million on 30
September 2023, compared to DKK 27,277 million on 30
September 2022. The increase can mainly be attributed to
investment activities and an increase in leasing liabilities.
The gearing ratio was 1.4x on 30 September 2023, compared to
0.9x last year. We maintain a financial gearing ratio target
(NIBD/EBITDA) of below 2.0x.
A new share buyback programme of DKK 2,500 million is
initiated on 24 October 2023.
The weighted average duration of the Company’s long-term
bonds and drawn credit facilities was 8.0 years on 30
September 2023.
Invested capital and ROIC
The invested capital including goodwill and customer
relationships amounted to DKK 99,791 million on 30 September
2023, compared to DKK 106,713 million on 30 September 2022.
The decrease in invested capital was mainly a result of the lower
net working capital and currency adjustments to goodwill.
Return on invested capital (including goodwill and customer
relationships) was 17.9% for the rolling 12-month period ended
30 September 2023, compared to 24.7% for the same period
last year. The decrease was mainly due to the decline in EBIT.
Excluding goodwill and customer relationships, return on
invested capital was 75.7% for the rolling 12-month period
ended 30 September 2023, compared to 98.7% for the same
period last year.
Events after the reporting
period
On 24 October 2023, we announced that DSV A/S (“DSV”) and
NEOM Company (“NEOM”) are entering a multi-billion dollar
exclusive transport and logistics joint venture to support the
development of the projects taking shape in NEOM. Further
details are provided in DSV Company Announcement No. 1064
and note 7 to the interim financial statements.
Outlook
Based on our performance in the first nine months of 2023 and
our expectations for Q4 2023, we narrow the full-year outlook as
follows:
• EBIT before special items is expected to be in the
range of DKK 17,500-18,500 million (previously DKK
17,000-18,500 million).
• The effective tax rate is expected to be approximately
25.0%.
The outlook assumes that currency exchange rates will remain
at current levels. As the geopolitical and macroeconomic
environment remains uncertain, unforeseen changes may
impact our financial results.
Page 9 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Air & Sea
The Air & Sea division operates a global network specialising in transportation of cargo by air and sea.
The division offers both conventional freight forwarding services and tailored project cargo solutions.
In a market characterised by reduced volumes and significantly lower freight rates, the division saw a
24.5% decrease in gross profit and 35.7% decrease in EBIT before special items for the first nine months
of 2023 (both in constant currencies). The decline was in line with expectations, and both profit margins
and the absolute level of earnings for the division remained strong.
Income statement
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Divisional revenue
21,912
45,339
71,118
138,508
Direct costs
15,702
36,204
51,127
111,161
Gross profit
6,210
9,135
19,991
27,347
Other external expenses
762
1,097
2,668
3,201
Staff costs
1,873
2,276
5,971
6,391
EBITDA before special items
3,575
5,762
11,352
17,755
Amortisation and depreciation
294
307
871
913
EBIT before special items
3,281
5,455
10,481
16,842
Key figures and ratios
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Gross margin (%)
28.3
20.1
28.1
19.7
Operating margin (%)
15.0
12.0
14.7
12.2
Conversion ratio (%)
52.8
59.7
52.4
61.6
Employees (FTE)
21,569
23,225
Total invested capital (DKKm)
63,754
75,057
Net working capital (DKKm)
414
9,493
ROIC before tax (%)
20.6
28.5
Market development
DSV volume growth
Q3 2023
YTD 2023
Air freight – tonnes
(14%)
(19%)
Sea freight – TEUs
(4%)
(8%)
The global air and sea freight markets saw a decline in demand
in the first nine months of 2023. This decline was mainly a result
of the broader macroeconomic slowdown, shift in consumer
behaviour (from goods to services) and actions to reduce
inventory levels.
In Q3 2023, the freight markets saw a gradual improvement in
volume growth compared to the first half of 2023. However, this
was mainly due to weaker comparative figures from Q3 2022,
and not an underlying improvement in demand in 2023.
DSV’s air volumes declined 19% in the first nine months of
2023. The weakest performance was seen in export volumes
from APAC, mainly within the categories retail, high-tech and
industrials.
As more passenger planes have returned to the market, more
belly-space cargo capacity has become available. In
combination with weak demand, this has led to overcapacity and
declining air freight rates. During Q3, this was partly offset by
higher fuel prices.
DSV’s sea freight volumes were down 8% in the first nine
Page 10 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
months of 2023, but only down by 4% in Q3 2023. The weakest
growth rates were recorded on export volumes out of APAC.
As a result of lower demand, reduced congestion and the
introduction of new capacity, sea freight rates have largely
returned to pre-pandemic levels across all major trade lanes.
In the first nine months of 2023, we estimate that DSV's volume
development – especially for air freight – was below the general
market. In a highly competitive market, this underperformance
can be attributed to our pricing discipline and focus on high-yield
cargo.
In Q3 2023, we have reinforced our commercial efforts and are
seeing positive results from this. Outgrowing the market
continues to be our ambition, but always with focus on profitable
growth.
Divisional revenue
The division’s revenue amounted to DKK 71,118 million for the
first nine months of 2023, compared to DKK 138,508 million for
the same period last year, and was down 47.1% in constant
currencies.
For Q3 2023, revenue amounted to DKK 21,912 million,
compared to DKK 45,339 million for the same period last year.
In constant currencies, revenue for the quarter was down
48.7%.
The development was driven by the significant decline in freight
rates and lower volumes. The division’s average revenue per
unit for the first nine months of 2023 was 34.7% below last year
for air and 46.5% below last year for sea.
Gross profit
For the first nine months of 2023, gross profit amounted to DKK
19,991 million, compared to DKK 27,347 million for the same
period last year. In constant currencies, gross profit was down
24.5%.
For Q3 2023, gross profit amounted to DKK 6,210 million,
compared to DKK 9,135 million for the same period last year.
In constant currencies, gross profit for the quarter was down
27.7%.
The decline in gross profit was most significant for air freight,
driven by both lower volumes and lower yields. The
normalisation of gross profit yields compared to the record-high
levels in 2022 is expected to continue into Q4 2023.
The division’s gross margin was 28.1% for the first nine months
of 2023, compared to 19.7% last year. The development was
mainly due to the product mix and lower pass-through revenue
compared to last year.
During the first nine months of 2023, the APAC region delivered
the weakest development in gross profit due to declining export
volumes and lower freight rates.
EBIT before special items
EBIT before special items came to DKK 10,481 million for the
first nine months of 2023, compared to DKK 16,842 million for
the same period last year. In constant currencies, EBIT declined
35.7%.
For Q3 2023, EBIT before special items amounted to DKK 3,281
million, compared to DKK 5,455 million for the same period last
year. In constant currencies, EBIT before special items for the
quarter was down 35.8%.
The decline in EBIT before special items was due to the drop in
gross profit, which was partially offset by a reduced cost base.
During 2023, various cost-saving initiatives have been put into
effect, reducing both staff costs and other external costs.
The conversion ratio was 52.4% for the first nine months of
2023, compared to the extraordinary high ratio of 61.6% for the
same period last year.
Net working capital
The Air & Sea division’s net working capital came to DKK 414
million on 30 September 2023, compared to DKK 9,493 million
on 30 September 2022. The significant reduction was mainly
due to lower revenue.
Page 11 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Growth Air & Sea 2022 - 2023
(DKKm)
Q3 2022
Currency
translation
Q3 2022 in
constant
currencies
Growth
Growth %*
Q3 2023
Divisional revenue
45,339
(2,599)
42,740
(20,828)
(48.7%)
21,912
Gross profit
9,135
(546)
8,589
(2,379)
(27.7%)
6,210
EBIT before special items
5,455
(346)
5,109
(1,828)
(35.8%)
3,281
(DKKm)
YTD 2022
Currency
translation
YTD 2022 in
constant
currencies
Growth
Growth %*
YTD 2023
Divisional revenue
138,508
(4,153)
134,355
(63,237)
(47.1%)
71,118
Gross profit
27,347
(853)
26,494
(6,503)
(24.5%)
19,991
EBIT before special items
16,842
(536)
16,306
(5,825)
(35.7%)
10,481
* Growth in constant currencies
Air & Sea freight performance
Air freight
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Divisional revenue
11,691
22,499
38,122
71,738
Direct costs
8,602
17,706
27,732
57,198
Gross profit
3,089
4,793
10,390
14,540
Gross margin (%)
26.4
21.3
27.3
20.3
Volume (tonnes)
324,436
375,990
968,604
1,189,495
Gross profit per unit (DKK)
9,521
12,748
10,727
12,224
Sea freight
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Divisional revenue
10,221
22,840
32,996
66,770
Direct costs
7,100
18,498
23,395
53,963
Gross profit
3,121
4,342
9,601
12,807
Gross margin (%)
30.5
19.0
29.1
19.2
Volume (TEUs)
653,817
680,683
1,883,948
2,038,957
Gross profit per unit (DKK)
4,774
6,379
5,096
6,281
Page 12 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Road
The Road division is among the market leaders in Europe and furthermore has operations in North
America, South Africa and in the Middle East. The division operates more than 23,000 trucks and offers
full load, part load and groupage services through a network of more than 250 terminals.
For the first nine months of 2023, the Road division reported 0.6% growth in gross profit and a 1.4%
decrease in EBIT before special items (both in constant currencies). The Road division performed well in
a market with declining activity across most sectors.
Income statement
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Divisional revenue
9,036
10,406
28,780
31,429
Direct costs
7,112
8,417
22,857
25,428
Gross profit
1,924
1,989
5,923
6,001
Other external expenses
354
342
1,084
1,056
Staff costs
838
895
2,658
2,670
EBITDA before special items
732
752
2,181
2,275
Amortisation and depreciation
210
227
639
686
EBIT before special items
522
525
1,542
1,589
Key figures and ratios
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Gross margin (%)
21.3
19.1
20.6
19.1
Operating margin (%)
5.8
5.0
5.4
5.1
Conversion ratio (%)
27.1
26.4
26.0
26.5
Employees (FTE)
16,642
16,496
Total invested capital (DKKm)
12,377
11,586
Net working capital (DKKm)
991
(256)
ROIC before tax (%)
16.6
18.3
Market development
As a result of reduced activity and destocking across multiple
industries, road market volumes declined in the first nine months
of 2023 compared to the same period last year.
The weakened demand has gradually resulted in more available
capacity and lower freight rates.
Divisional revenue
The division’s revenue amounted to DKK 28,780 million for the
first nine months of 2023, compared to DKK 31,429 million for
the same period last year. In constant currencies, revenue for
the period declined 6.6%.
For Q3 2023, revenue amounted to DKK 9,036 million,
compared to DKK 10,406 million for the same period last year.
In constant currencies, revenue for the quarter was down
10.9%.
The decline in revenue was due to both lower activity levels and
lower freight rates compared to the previous year.
Gross profit
For the first nine months of 2023, gross profit totalled DKK 5,923
million, compared to DKK 6,001 million for the same period last
year. In constant currencies, growth for the period was 0.6%.
For Q3 2023, gross profit amounted to DKK 1,924 million,
compared to DKK 1,989 million for the same period last year.
In constant currencies, gross profit for the quarter was down
1.1%.
Page 13 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
The division’s gross margin was 20.6% for the first nine months
of 2023, compared to 19.1% for the same period last year. The
gross margin can be contributed to disciplined cost control
initiatives on direct cost and efficient utilisation of the network.
The division maintains its focus on developing and growing its
European groupage operations, which carry higher gross margin
than full-load and domestic shipments.
EBIT before special items
EBIT before special items was DKK 1,542 million for the first
nine months, compared to DKK 1,589 million for the same
period last year. In constant currencies, EBIT before special
items for the period decreased 1.4%.
For Q3 2023, EBIT before special items amounted to DKK 522
million, compared to DKK 525 million for the same period last
year. In constant currencies, EBIT before special items for the
quarter was up 1.4%.
The best EBIT performance was achieved in Europe.
The conversion ratio came to 26.0% for the first nine months of
2023, compared to 26.5% for the same period last year. The
cost base for the first nine months of 2023 was impacted by
inflation but offset by the division’s continued focus on
productivity.
Net working capital
The Road division’s net working capital was DKK 991 million on
30 September 2023, compared to a negative DKK 256 million on
30 September 2022. The development was due to an increase
in funds tied up in property projects.
Growth Road 2022 - 2023
(DKKm)
Q3 2022
Currency
translation
Q3 2022 in
constant
currencies
Growth
Growth %*
Q3 2023
Divisional revenue
10,406
(261)
10,145
(1,109)
(10.9%)
9,036
Gross profit
1,989
(44)
1,945
(21)
(1.1%)
1,924
EBIT before special items
525
(10)
515
7
1.4%
522
(DKKm)
YTD 2022
Currency
translation
YTD 2022 in
constant
currencies
Growth
Growth %*
YTD 2023
Divisional revenue
31,429
(607)
30,822
(2,042)
(6.6%)
28,780
Gross profit
6,001
(113)
5,888
35
0.6%
5,923
EBIT before special items
1,589
(25)
1,564
(22)
(1.4%)
1,542
* Growth in constant currencies
Page 14 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Solutions
The Solutions division offers warehousing and logistics services globally and controls more than 500
logistics facilities. The service portfolio includes freight management, customs clearance, order
management and e-commerce solutions.
For the first nine months of 2023, the Solutions division reported an EBIT of DKK 1,745 million, compared
to DKK 2,155 million for the same period last year. The development was mostly due to reduced activity
levels – especially in the first part of 2023 – as well an increase in the cost base due to expansion of the
division’s warehouse capacity. Profit margins and the absolute level of earnings for the division remained
strong.
Income statement
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Divisional revenue
5,538
5,841
17,061
18,185
Direct costs
3,157
3,516
10,022
11,214
Gross profit
2,381
2,325
7,039
6,971
Other external expenses
453
448
1,326
1,276
Staff costs
599
600
1,800
1,677
EBITDA before special items
1,329
1,277
3,913
4,018
Amortisation and depreciation
745
664
2,168
1,863
EBIT before special items
584
613
1,745
2,155
Key figures and ratios
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Gross margin (%)
43.0
39.8
41.3
38.3
Operating margin (%)
10.5
10.5
10.2
11.9
Conversion ratio (%)
24.5
26.4
24.8
30.9
Employees (FTE)
32,506
32,588
Total invested capital (DKKm)
25,038
23,551
Net working capital (DKKm)
2,076
1,546
ROIC before tax (%)
9.4
13.6
Market development
In the first nine months of 2023, we estimate that the contract
logistics market decreased by low single digits, mainly due to
weak demand in the retail and industrial sectors.
Warehouse occupation decreased compared to last year,
especially as Europe and APAC regions experience a
downtrend in activity.
Divisional revenue
The division’s revenue was DKK 17,061 million for the first nine
months of 2023, compared to DKK 18,185 million for the same
period of 2022. In constant currencies, revenue decreased
3.4%.
For Q3 2023, revenue amounted to DKK 5,538 million,
compared to DKK 5,841 million for the same period last year. In
constant currencies, revenue for the quarter was down 0.8%.
Page 15 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Activity measured by number of order lines handled decreased
slightly for the first nine months of 2023 but stabilised in Q3
2023.
During the first nine months of 2023, the Americas region
achieved growth in revenue, whereas both EMEA and APAC
recorded lower revenue.
Gross profit
For the first nine months of 2023, gross profit was DKK 7,039
million, compared to DKK 6,971 million for the same period of
2022. In constant currencies, growth for the period was 4.0%.
For Q3 2023, gross profit amounted to DKK 2,381 million,
compared to DKK 2,325 million for the same period last year.
Growth for the quarter was 7.6%.
The division’s gross margin was 41.3% for the first nine months
of 2023, compared to 38.3% for the same period last year.
The division's strategy of consolidating into large and efficient
warehouses (campuses) and implementing warehouse
automation was a key driver behind the improved gross margin.
EBIT before special items
EBIT before special items was DKK 1,745 million for the first
nine months of 2023, compared to DKK 2,155 million for the
same period of 2022, and was down by 16.9% in constant
currencies.
For Q3 2023, EBIT before special items was DKK 584 million,
compared to DKK 613 million for the same period last year. In
constant currencies, EBIT before special items for the quarter
was on the same level as last year.
The conversion ratio was 24.8% for the first nine months of
2023, compared to 30.9% for the same period last year.
During the first nine months of 2023, the cost base was
impacted by general cost inflation and expansion of warehouse
capacity, leading to higher depreciations on lease assets. As the
added capacity is not yet fully utilised, the division is currently
operating with a warehouse utilisation rate slightly below
previous year, which has a dilutive effect on the conversion
ratio. Furthermore, 2022 was an exceptionally strong year for
the division with high warehouse utilisation rates and elevated
activity levels.
Net working capital
The division’s net working capital came to DKK 2,076 million on
30 September 2023, compared to DKK 1,546 million on 30
September 2022. The increase is due to increased funds tied up
in property projects.
Growth Solutions 2022 - 2023
(DKKm)
Q3 2022
Currency
translation
Q3 2022 in
constant
currencies
Growth
Growth %*
Q3 2023
Divisional revenue
5,841
(260)
5,581
(43)
(0.8%)
5,538
Gross profit
2,325
(112)
2,213
168
7.6%
2,381
EBIT before special items
613
(29)
584
(0)
(0.1%)
584
(DKKm)
YTD 2022
Currency
translation
YTD 2022 in
constant
currencies
Growth
Growth %*
YTD 2023
Divisional revenue
18,185
(531)
17,654
(593)
(3.4%)
17,061
Gross profit
6,971
(202)
6,769
270
4.0%
7,039
EBIT before special items
2,155
(56)
2,099
(354)
(16.9%)
1,745
* Growth in constant currencies
Page 16 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Interim financial statements
Income statement
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Revenue
114,257
184,434
Direct costs
80,886
143,941
Gross profit
33,371
40,493
Other external expenses
3,688
4,058
Staff costs
11,996
12,284
Operating profit before amortisation and depreciation (EBITDA) before special
items
17,687
24,151
Amortisation and depreciation
3,914
3,696
Operating profit (EBIT) before special items
13,773
20,455
Special items, costs
-
1,117
Financial income
284
226
Financial expenses
1,431
1,177
Profit before tax
12,626
18,387
Tax on profit for the period
3,156
4,505
Profit for the period
9,470
13,882
Profit for the period attributable to:
Shareholders of DSV A/S
9,406
13,800
Non-controlling interests
64
82
Earnings per share:
Earnings per share of DKK 1 for the period
43.8
60.1
Diluted earnings per share of DKK 1 for the period
43.4
59.2
Page 17 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Statement of comprehensive income
(DKKm)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Profit for the period
9,470
13,882
Items that may be reclassified to the income statement when certain
conditions are met:
Net foreign exchange differences recognised in OCI
(189)
6,171
Fair value adjustments of hedging instruments
(3 )
(20 )
(11)
(24)
Fair value adjustments of hedging instruments transferred to financial
expenses
(8 )
(5)
7
Tax on items reclassified to the income statement
3
4
Items that will not be reclassified to the income statement:
Actuarial gains/(losses)
(221 )
177
424
Tax on items that will not be reclassified
(15 )
(47)
(102)
Other comprehensive income, net of tax
(72)
6,480
Total comprehensive income
9,398
20,362
Total comprehensive income attributable to:
Shareholders of DSV A/S
9,330
20,260
Non-controlling interests
68
102
Total
9,398
20,362
Page 18 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Cash flow statement
(DKKm)
YTD 2023
YTD 2022
Operating profit before amortisation and depreciation (EBITDA) before special items
Adjustments:
Share-based payments
Change in provisions
(284 )
(331 )
Change in working capital
Special items, paid
(263 )
(523 )
Interest received
Interest paid, lease liabilities
(623 )
(518 )
Interest paid, other
(543 )
(518 )
Income tax paid
(4,162 )
(3,154 )
Cash flow from operating activities
Purchase of intangible assets
(323 )
(220 )
Purchase of property, plant and equipment
(1,539 )
(795 )
Disposal of property, plant and equipment
Acquisition of subsidiaries and activities
(607 )
Change in other financial assets
(60 )
Cash flow from investing activities
(1,664 )
(495 )
Free cash flow
Proceeds from borrowings
Repayment of borrowings
(365 )
(2,466 )
Repayment of lease liabilities
(2,902 )
(2,758 )
Other financial liabilities incurred
(129 )
Transactions with shareholders:
Dividends distributed to shareholders of DSV A/S
(1,424 )
(1,320 )
Purchase of treasury shares
(11,441 )
(13,157 )
Sale of treasury shares
Other transactions with shareholders
(5 )
Cash flow from financing activities
(14,176 )
(15,024 )
Cash flow for the period
(1,341 )
Cash and cash equivalents 1 January
Cash flow for the period
(1,341 )
Currency translation
(223 )
Cash and cash equivalents end of period
The cash flow statement cannot be directly derived from the balance sheet and income statement.
Statement of adjusted free cash flow
YTD 2023
YTD 2022
Free cash flow
12,835
18,998
Acquisition of subsidiaries and activities (reversed)
607
-
Special items (reversed)
263
523
Repayment of lease liabilities
(2,902)
(2,758)
Adjusted free cash flow
10,803
16,763
Page 19 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Balance sheet – Assets
(DKKm)
30.09.2023
31.12.2022
30.09.2022
Intangible assets
Right-of-use assets
Property, plant and equipment
Other receivables
Deferred tax assets
Total non-current assets
Trade receivables
Contract assets
Inventories
Other receivables
Cash and cash equivalents
Assets held for sale
Total current assets
Total assets
Balance sheet – Equity and liabilities
(DKKm)
30.09.2023
31.12.2022
30.09.2022
Share capital
Reserves
Retained earnings
DSV A/S shareholders’ share of equity
Non-controlling interests
Total equity
Lease liabilities
Borrowings
Pensions and other post-employment benefit plans
Provisions
Deferred tax liabilities
Total non-current liabilities
Lease liabilities
Borrowings
Trade payables
Accrued cost of services
Provisions
Other payables
Tax payables
Total current liabilities
Total liabilities
Total equity and liabilities
Page 20 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Statement of changes in equity at 30 September 2023
Attributable to shareholders of DSV A/S
(DKKm)
Share
capital
Reserves
Retained
earnings
Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2023
Profit for the period
Other comprehensive income, net of tax
(206 )
(76 )
(72 )
Total comprehensive income for the period
(206 )
Transactions with shareholders and
non-controlling interests:
Share-based payments
Tax on share-based payments
Dividends distributed
(1,424 )
(1,424 )
(25 )
(1,449 )
Purchase of treasury shares
(9 )
(11,432 )
(11,441 )
(11,441 )
Sale of treasury shares
Dividends on treasury shares
Other adjustments
(4 )
(4 )
Total equity transactions
(6 )
(10,664 )
(10,670 )
(20 )
(10,690 )
Equity at 30 September 2023
Statement of changes in equity at 30 September 2022
Attributable to shareholders of DSV A/S
(DKKm)
Share
capital
Reserves
Retained
earnings
Total
Non-
controlling
interests
Total
equity
Equity at 1 January 2022
(356 )
Profit for the period
Other comprehensive income, net of tax
Total comprehensive income for the period
Transactions with shareholders and
non-controlling interests:
Share-based payments
Tax on share-based payments
(537 )
(537 )
(537 )
Dividends distributed
(1,320 )
(1,320 )
(56 )
(1,376 )
Purchase of treasury shares
(12 )
(13,145 )
(13,157 )
(13,157 )
Sale of treasury shares
Capital increase
-
-
-
(1 )
(1 )
Capital reduction
(6 )
-
-
Dividends on treasury shares
Other adjustments
Total equity transactions
(6 )
(4 )
(14,350 )
(14,360 )
(51 )
(14,411 )
Equity at 30 September 2022
Page 21 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Notes to the interim financial statements
1 Accounting policies
This Interim Financial Report has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as adopted by the
European Union and additional disclosure requirements for
listed companies under the Danish Financial Statements Act.
Accounting policies applied in preparing the Interim Financial
Report are consistent with those applied in preparing the DSV
Annual Report 2022. The DSV Annual Report 2022 provides a
full description of the Group’s accounting policies.
Changes in accounting policies
The DSV Group has implemented amendments to the
International Financial Reporting Standards (IFRS) effective as
of 1 January 2023 as adopted by the European Union.
None of the amendments implemented have had any material
impact on the Group’s financial statements and notes to the
interim financial statements.
2 Management judgements and
estimates
In preparing the Interim Financial Statements, Management
makes various accounting estimates and judgements that affect
the reported amounts and disclosures in the statements and in
the notes to the financial statements. These are based on
professional experience, historical data and other factors
available to Management.
By nature, a degree of uncertainty is involved when carrying
out these judgements and estimates, hence actual results
may deviate from the assessments made at the reporting
date. Judgements and estimates are continuously evaluated,
and the effects of any changes are recognised in the
relevant period.
Primary financial statement items in which more significant
accounting estimates are applied are listed in Chapter 1 of the
Notes to the 2022 DSV Annual Report.
3 New accounting regulations
The IASB has issued a number of new standards and
amendments not yet in effect or endorsed by the EU and
therefore not relevant for the preparation of the Q3 2023 Interim
Financial Report.
None of those are currently expected to carry any significant
impact on the financial statements of the DSV Group when
implemented.
4 Segment information
Air & Sea
Road
Solutions
Non-allocated items
and eliminations
Total
(DKKm)
YTD 2023
YTD 2022
YTD 2023
YTD 2022
YTD 2023
YTD 2022
YTD 2023
YTD 2022
YTD 2023
YTD 2022
Condensed income statement
Revenue
70,726
137,154
26,737
29,367
16,538
17,837
256
76
114,257
184,434
Intercompany revenue
392
1,354
2,043
2,062
523
348
(2,958)
(3,764)
-
-
Divisional revenue
71,118
138,508
28,780
31,429
17,061
18,185
(2,702)
(3,688)
114,257
184,434
Direct costs
51,127
111,161
22,857
25,428
10,022
11,214
(3,120)
(3,862)
80,886
143,941
Gross profit
19,991
27,347
5,923
6,001
7,039
6,971
418
174
33,371
40,493
Other external expenses
2,668
3,201
1,084
1,056
1,326
1,276
(1,390)
(1,475)
3,688
4,058
Staff costs
5,971
6,391
2,658
2,670
1,800
1,677
1,567
1,546
11,996
12,284
Operating profit before amortisation,
depreciation (EBITDA) before special
items
11,352
17,755
2,181
2,275
3,913
4,018
241
103
17,687
24,151
Amortisation and depreciation
871
913
639
686
2,168
1,863
236
234
3,914
3,696
Operating profit (EBIT) before special
items
10,481
16,842
1,542
1,589
1,745
2,155
5
(131)
13,773
20,455
Condensed balance sheet
Total assets
82,478
104,886
25,220
24,767
32,135
30,242
10,840
14,242
150,673
174,137
Total liabilities
53,281
78,190
18,571
18,485
25,012
23,999
(16,640)
(26,766)
80,224
93,908
Page 22 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
5 Revenue
Sale of services by geographical segment:
EMEA
Americas
APAC
Total
(DKKm)
Q3 2023
Q3 2022
Q3 2023
Q3 2022
Q3 2023
Q3 2022
Q3 2023
Q3 2022
Air services
4,754
7,509
3,195
7,018
3,742
7,972
11,691
22,499
Sea services
4,828
11,139
3,441
8,017
1,952
3,684
10,221
22,840
Road services
8,190
9,345
846
1,061
-
-
9,036
10,406
Solutions services
3,522
3,801
1,222
1,155
794
885
5,538
5,841
Total
21,294
31,794
8,704
17,251
6,488
12,541
36,486
61,586
Non-allocated items and eliminations
(910)
(1,026)
Total revenue
35,576
60,560
EMEA
Americas
APAC
Total
(DKKm)
YTD 2023
YTD 2022
YTD 2023
YTD 2022
YTD 2023
YTD 2022
YTD 2023
YTD 2022
Air services
15,711
22,845
11,362
22,481
11,049
26,412
38,122
71,738
Sea services
16,053
33,011
10,982
22,489
5,961
11,270
32,996
66,770
Road services
26,130
28,311
2,650
3,118
-
-
28,780
31,429
Solutions services
11,064
12,409
3,550
3,156
2,447
2,620
17,061
18,185
Total
68,958
96,576
28,544
51,244
19,457
40,302
116,959
188,122
Non-allocated items and eliminations
(2,702)
(3,688)
Total revenue
114,257
184,434
6 Financial instruments – fair value hierarchy
DSV has no financial instruments measured at fair value based on level 1 input or level 3 input. The fair value of derivative financial
instruments is determined based on level 2 input. The fair value of issued bonds measured at amortised cost is within level 1 of the fair
value hierarchy.
Other financial instruments are considered to have a carrying value equal to fair value.
(DKKm)
30 September 2023
31 December 2022
Carrying amount
Fair value
Carrying amount
Fair value
Financial assets:
Currency derivatives
-
-
93
93
Trade receivables
22,010
22,010
32,387
32,387
Other receivables
6,766
6,766
6,640
6,640
Cash and cash equivalents
8,596
8,596
10,160
10,160
Financial assets measured at amortised costs
37,372
37,372
49,187
49,187
Financial liabilities:
Currency derivatives
79
79
-
-
Issued bonds measured at amortised cost
21,512
17,199
21,377
16,615
Overdraft and credit facilities
476
476
829
829
Trade payables
12,794
12,794
14,992
14,992
Financial liabilities measured at amortised cost
34,782
30,469
37,198
32,436
Page 23 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
7 Significant events after the reporting period
On 24 October 2023, we announced that DSV A/S (“DSV”) and NEOM Company (“NEOM”) are entering a multi-billion dollar
exclusive transport and logistics joint venture. NEOM will hold 51% of the joint venture with DSV holding the remaining 49%.
Completion of the partnership is awaiting customary regulatory approvals, which are expected to be obtained in the second quarter
of 2024.
The business plan for the joint venture is expected to require a USD 10 billion gross investment. In accordance with the business
plan, the total shareholder funding commitment up and until 31 December 2031 is USD 5 billion. NEOM and DSV commits to
provide funding to realise the business plan pro rata to their respective shareholdings.
It is not expected that the joint venture will have any material financial impact on DSV for the financial year 2023.
Further details are provided in DSV Company Announcement No. 1064.
Page 24 of 24 INTERIM FINANCIAL REPORT – COMPANY ANNOUNCEMENT NO. 1065 – 24 October 2023
Statement by the Board of Directors
and the Executive Board
The Board of Directors and the Executive Board have today considered and adopted the Interim Financial Report of DSV A/S for the
nine-month period ended 30 September 2023.
The Interim Financial Report, which has not been audited or reviewed by the Company auditor, has been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union and additional requirements in accordance with the
Danish Financial Statements Act.
In our opinion, the Interim Financial Statements give a true and fair view of the Group’s assets, equity, liabilities and financial
position at 30 September 2023 and of the results of the Group’s activities and the cash flow for the nine-month period ended 30
September 2023.
We also find that the Management’s commentary provides a fair statement of developments in the activities and financial situation of
the Group, financial results for the period, the general financial position of the Group and a description of the major risks and
elements of uncertainty faced by the Group. Aside from the disclosures in the Interim Financial Report, no changes in the Group’s
most significant risks and uncertainties have occurred relative to the disclosures in the Annual Report for 2022.
Executive Board:
Board of Directors: