DSV Annual Report 2022

14 DSV Annual Report 2022 Strategy and financial targets = III Our industry and market trends By understanding market trends in our own industry - and in others that affect us we can take advantage of opportunities and act quickly to reduce risks. A fragmented competitive landscape We are one of the top three global freight forwarders, with a market share of roughly 4%. Together, the top 20 forwarders have an estimated global market share of 30-40%. The rest of the market consists of a long tail of smaller regional and local freight forwarders. The mix of industry fragmentation and service standardisation creates a competitive pricing landscape. But because of our scale, global network, strong IT systems and logistics competences, big freight forwarders like DSV are in a good position to consolidate the market and gain market share. Our acquisition track record is a strong example of this, and we expect the consolidation trend to prevail in the coming years. New competition emerging In recent years, new competitors have entered the industry. One category is the digital forwarders, who typically offer a simple, standardised range of services, mainly focused on online price quoting and booking. Digital forwarders have a high level of digital capabilities but a lower level of logistics capabilities, such as operational expertise, global networks, scale, warehouses and carrier relationships. Furthermore, a few of the large ocean carriers now aim to provide door- to-door transport services, air and overland transport in addition to ocean transport. This has created scenarios where these carriers are both suppliers and competitors to freight forwarders. So far, the new players have not gained material market shares. Based on our strong logistics capabilities and our clear roadmap to further enhance our digital capabilities, we are confident that DSV will remain highly competitive. GDP sets the pace for market growth In recent years, global trade growth has been on level with GDP growth, and we believe this correlation will continue in the long term - with different growth rates between regions. As a result of the slowdown in the global economy and a post-COVID shift in consumer spending away from goods and towards services, global trade volumes have contracted during 2022 and have developed worse than the general economy. This development will also impact our markets going into 2023. Our asset-light model enables us to quickly adjust our capacity to such changes in demand. Our industry has changed dramatically in recent years. New trends and market dynamics are affecting transport and logistics globally and locally. We must understand these dynamics so we can act quickly to capitalise on opportunities and mitigate threats. In the following chart we have listed important ongoing trends affecting DSV. Market share Top five global freight forwarders and market share based on 2021 revenue. Top five 60% Kuehne + Nagel DHL Logistics DSV+GIL 20% Others 5% 5% 4% 3% 3% DB Schenker C.H. Robinson ■Top 6-20 Others, estimated Source: Armstrong & Associates and DSV estimates.

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