DSV Annual Report 2022

52 DSV Annual Report 2022 Consolidated financial statements 2022 = III Chapter 2 Profit for the year This chapter includes disclosures on components of consolidated profit for the year. The consolidated profit is based on the combined results of our three operating segments - Air & Sea, Road and Solutions as described in the following. - Reference is also made to the comments on the financial performance of the Group and the divisions in Management's commentary. 2.1 Segment information Accounting policies Operating segments are defined by the operational and management structure of DSV, which is derived from the types of services we deliver and our geographical presence on the world market. As such, our operat- ing segments reflect our divisional and Group reporting used for manage- ment decision-making. Operating segments Our business operations are carried out by three divisions, forming the basis of our segment reporting. Air & Sea The Air & Sea division provides air and sea freight services across the globe. This includes a projects department, handling out of gauge cargo and special transportation projects. Road The Road division provides road freight services across Europe, Middle East, North America and South Africa. Solutions The Solutions division offers contract logistics services, incl. warehousing and inventory management, across the globe. Measurement of earnings by segment Our business segments are measured and reported down to operating profit before special items. Segment results are accounted for in the same way as in the consolidated financial statements. Segment income/expenses and assets/liabilities comprise the items directly attributable to the individual segment as well as the items that may be allocated to the individual segment on a reliable basis. Income and expenses relating to Group functions, investing activities, etc., are managed at Group level. These items are not included in the statement of segment information, but are presented under 'non- allocated items and eliminations'. Financial position of business segments Assets and liabilities are included in the segmental reporting to the extent they are used for the operation of the segment. Assets and liabilities that cannot be attributed to any of the three seg- ments on a reliable basis are presented under 'non-allocated items and eliminations'. Geographical information DSV operates in most parts of the world and has activities in more than 80 countries, which are divided into the following geographical regions: . EMEA: Europe, Middle East and Africa Americas: North and South America APAC: Asia, Australia and the Pacific Revenue and non-current assets are allocated to the geographical areas according to the country in which the individual consolidated entity is based. Refer to note 2.2 for regional segmentation of revenue. The cor- porate headquarter of DSV is located in Denmark, which is included in the EMEA segment. Our business is based on transactions in our global net- work rather than in individual countries or regions. Intersegment transactions are made on an arm's length basis. Major customers DSV is not reliant on any major customers. No single customer exceeds 5% of combined Group revenue.

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