Company Announcement No. 643 “While maintaining momentum in our integration efforts in 2016, we kept focus on running the business, leading to very satisfactory results in all divisions. We expect to complete the integration of UTi and continue to take market share in 2017 creating earnings growth of 21 - 29%,” says Jens Bjørn Andersen, CEO Selected financial highlights for 2016 (1 January - 31 December 2016) (DKKm) Q4 2016 Q4 2015 YTD 2016 YTD 2015 -------------------------------------------------------------------------------- Net revenue 17,617 12,606 67,747 50,869 Gross profit 3,998 2,830 15,838 11,201 Operating profit before special items 929 749 3,475 3,050 Operating margin 5.3% 5.9% 5.1% 6.0% Conversion ratio 23.2% 26.5% 21.9% 27.2% Adjusted earnings 2,506 2,211 Adjusted free cash flow 1,838 2,837 Diluted adjusted earnings per share of DKK 13.40 12.85 1 Proposed dividend per share (DKK) 1.80 1.70 -------------------------------------------------------------------------------- Operating profit before special items -------------------------------------------------------------------------------- Air & Sea 569 492 2,143 1,923 Road 230 197 1,049 918 Solutions 142 63 384 242 -------------------------------------------------------------------------------- Q4 2016 results For Q4 2016, net revenue increased 39.8% and amounted to DKK 17,617 million (Q4 2015: DKK 12,606 million). The growth was mainly due to the acquisition of UTi Worldwide Inc. The Air & Sea Division reported a 61.1% increase, the Road Division 14.4% and the Solutions Division 77.6%. Freight volume growth for the quarter was 86% for air freight, 56% for sea freight and 5% for road transport (Europe). Gross profit was also significantly impacted by UTi. For Q4 2016, gross profit increased 41.3% and came to DKK 3,998 million (Q4 2015: DKK 2,830 million). Air & Sea landed growth of 50.8%. Road achieved growth of 11.5%, whereas Solutions reported gross profit growth of 94.9%. Operating profit before special items for the quarter was up by 24.0% at DKK 929 million for Q4 2016 (Q4 2015: DKK 749 million). All three divisions achieved earnings growth in fourth quarter. Growth in earnings gradually increased throughout the year as synergies from the integration of UTi were achieved. Dividend Based on the financial results for the year, the Board of Directors proposes ordinary dividends of DKK 1.80 per share for 2016 (2015: DKK 1.70 per share). Outlook for 2017 -- Operating profit before special items is expected to be in the range of DKK 4,200 – 4,500 million -- Net financial expenses are expected to approximate DKK 300 million -- The effective tax rate of the Group is expected to be approximately 25% -- Adjusted free cash flow is expected to be approximately DKK 3,500 million The Group expects further integration costs of approx. DKK 500 million in relation to the integration of UTi Worldwide Inc. The integration costs will be charged to the income statement under special items in 2017. Investor teleconference DSV will host an investor teleconference on 10 February 2017 at 11.00 a.m. CET. Reference is made to Investor News, 2016 Annual Report analyst conference call, at investor.dsv.com. Contacts Investor Relations Flemming Ole Nielsen, tel. +45 43 20 33 92, flemming.o.nielsen@dsv.com Ronni Funch Olsen, tel. +45 43 20 31 93, ronni.f.olsen@dsv.com Media Tina Hindsbo, tel. +45 43 20 36 63, tina.hindsbo@dsv.com This announcement has been forwarded to Nasdaq Copenhagen and to the press. It is also available at www.dsv.com. The announcement has been prepared in Danish and in English. In the event of discrepancies, the English version prevails. Yours sincerely, DSV A/S