DSV Annual Report 2022

= III Gross profit DKK 34,624 million +38.5% Operating profit DKK 20,658 million +53.0% Geographic segmentation based on gross profit DEMEA 39% AMERICAS 32% APAC 29% The Air & Sea division operates a global network specialising in transportation of cargo by air and sea. The division offers both conventional freight for- warding services and tailored project cargo solutions. Air & Sea For 2022, the division reported a 38.5% increase in gross profit and 53.0% increase in EBIT before special items. This growth was driven by the inclusion of GIL, high gross profit yields in extraordinary freight markets and a continued focus on operational excellence. Market situation Navigating volatile markets was a major theme in 2022. Dur- ing the year, there was a significant change in the dynamics of the global freight markets. At the start of the year, supply chains were still heavily impacted by congestion and COVID-19 lockdowns. This resulted in lack of capacity, high freight rates and low schedule reliability. During the second half of the year, demand for transport servic- es declined as a result of the general macroeconomic slowdown, de-stocking in the retail sector and a gradual normalisation after COVID-19 lockdowns as consumption shifted away from mate- rial goods and towards services. Congestion across supply chains gradually eased and capacity started to recover, leading to a more balanced market situation by the end of the year. Condensed income statement and key figures (DKKm) 2022 2021 Growth* Revenue Direct costs 174,431 131,901 139,807 108,132 26.1% Air 34,624 23,769 38.5% 4,244 8,471 3,366 6,598 Gross profit Other external expenses Staff costs 21.9 The global air freight market saw gradually declining demand during 2022, especially for export from Asia to Europe and to North America. Demand for air freight was also impacted by improving schedule reliability and lower rates in the sea freight market, which made sea freight a more competitive alternative. The available air freight capacity gradually increased as belly- space capacity in passenger planes returned. As a result, air freight rates declined, mainly in the second half of 2022. This year, we achieved air freight volume growth of 3% (in- cluding M&A impact). Adjusted for the acquisition of GIL, the division's 2022 volumes were down by approximately 7%, compared to an estimated general market decline of 8-10%. Sea In the global sea freight market, port congestion was still an issue on the US East Coast and in Northern Europe in the first part of 2022, but available capacity gradually increased as congestion eased during the year. In combination with weaker Operating profit before amortisation and depreciation (EBITDA) before special items Amortisation and depreciation 21,909 1,251 13,805 1,037 Operating profit (EBIT) before special items 20,658 12,768 53.0% Gross margin (%) 19.8 18.0 Conversion ratio (%) 59.7 53.7 Operating margin (%) 11.8 9.7 Number of full-time employees at year end 23,032 24,675 Total invested capital 68,813 73,256 Net working capital 5,849 10,675 ROIC before tax (%) 29.1 Growth including M&A and in constant currencies.

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