Dsv Air & Sea Holding A/S

Ledelsesberetning

Financial highlights2024 2023 2022 2021 2020Key figures (in thousands DKK):Operating profit/loss -29,218 330,198 -174,552 -93,143 -166,020Net financials -893,365 -880,966 -1,069,760 -227,670 -234,516Profit for the year 6,808,637 5,912,047 2,816,374 1,527,763 2,448,995Shareholders' equity at year-end 10,687,342 8,882,485 4,957,215 4,147,667 4,439,077Total assets 31,223,382 32,235,704 32,986,070 30,768,049 26,243,663Investments for the year 77,502 784,986 1,666,711 5,351,559 4,127,885Ratios:Return on equity 69.58% 85.44% 61.87% 35.58% 36.48%Solvency ratio 34.23% 27.55% 15.03% 13.48% 16.91%Financial ratios are calculated in accordance with the Danish Finance Society's guidelines on the calculation of financial ratios as stated below: Profit/loss x 100Return on equityAverage equity Equity x 100Solvency ratioTotal AssetsBusiness activities and missionThe Company is a 100% owned subsidiary of DSV A/S. The Company’s financial statements are a part of the consolidated financialstatements for DSV A/S.DSV Air & Sea Holding A/S invests in companies which offer freight forwarding and services with view to moving goods by air andsea to multinational and local customers. The aim of risk management is to secure the Group's finance at an attractive interest level as well as to prevent that a short-Business reviewIn this section we refer to the DSV Group's Annual Report, where the business review has been highlighted for the Air & Sea division. The report is available at: https://investor.dsv.com/reports-presentations.The 2024 Air & Sea division revenue increased by 14% in constant currencies. The development in revenue was driven by higheraverage freight rates compared to the previous year and higher activity levels with increased volumes for both air and sea. During theyear, the Air & Sea division saw a decrease of 3.6% in gross profit and a decrease of 9.9% in EBIT before special items. The declinein gross profit originates from lower gross profit yields and cost inflation. The decline in EBIT before special items can be attributedto the reduction in gross profit and a slightly higher cost base. During the second half of the year, the division returned to year-over-year growth for both gross profit and EBIT. The market in 2024 was significantly impacted by supply chain disruptions, which affected cargo flows and a pull-forward effect onvolumes towards the end of the year compared to normal seasonality. The disruptions resulted in lower available capacity which, incombination with increased demand, led to higher freight rates across all major trade lanes.The Air & Sea division reported an air freight volume increase compared with last year of 7%, and the sea freight volume alsoincreased 7% compared with last year. Both increases are above the estimated market growth rates for air and sea freight. In 2024, we continued to develop our digitalisation efforts, focusing on improving digital customer integrations and booking dataquality leading to better and faster supply chain visibility and increases our productivity.We also continued to develop our LCL (less-than-container load) product in sea freight, focusing on increasing consolidation in ourown terminals. This ensures a higher service level towards our customers and higher profitability per container.ResultsThe net result in the Company for the year, shows a profit of t.DKK 6,808,637, which is above the result for 2023 and aboveexpectations. The reason for the higher result than anticipated is due to the higher return on investments in Group Enterprises andAssociated Companies.The result is considered satisfactory by the Management. InvestmentsIn 2024, the Company had investments in Group Enterprises, Associated Companies and Other Investments amounting to t.DKK77,502.Capital resourcesThe Company has a solid capital resource due to the fact that the Company is a part of the cashpool in the DSV Group. The capitalressource is supported by the Groups strategic goal to secure sufficient financial flexibility.Outlook We expect transport markets will continue to grow in 2025 in line with global GDP, but uncertainty remains high due to themacroeconomic and geopolitical situation, including potential trade barriers and tariffs. Market volatility as well as supply chaindisruptions are also expected to continue into 2025. Our response is to navigate the markets, while at the same time helping ourcustomers to keep their supply chains flowing based on reliable, efficient and sustainable services. With the planned integration of Schenker, we will further strengthen our global network, customer offerings and overall position in themarket. We have a strong market position globally, and it remains our target to deliver sustainable growth and take market shareacross geographies and industry verticals while continuing to improve our productivity. It is anticipated that the earnings for 2025 will be lower compared to 2024 and in a range between t.DKK 6,000,000 - 6,200,000 dueto lower return on investments in Group Enterprises and Associated Companies.MANAGEMENT REVIEW (continued)Unusual risksThere are no unusal matters during the year, which influence the measurement in the Annual Report.