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Ladies and gentlemen, welcome to the DSV Q3 2026 Conference Call. I'm Morris, the Chorus Call operator. [Operator Instructions] The conference is being recorded. The presentation will be followed by a question-and-answer session. [Operator Instructions] At this time, it's my pleasure to hand over to Jens Lund, Group CEO. Please go ahead, sir.

Good morning, and welcome to our Q3 call. We are, as usual, Mike and I to present the results. And I'll go through some of the first slides here. And then later on, Michael, he will go some of the other points on the agenda. So let's quickly go into it, and we can start basically by, I think, the most important topic for many of you during the quarter. We can say that the service levels on Road. They are back on track and policy issues that we had, they are resolved.

But of course, it has had the consequence that our synergies that will be realized a little bit later on the Road side because we've had to have focus on solving those issues. In general, on Group level, the GP is up 2.3%. When we made the business plan for acquiring Schenker, we said we're going to lose certain volume, our GP at the end of the day. And now, let's say, in the Q3, it's really great to see that we're back on the growth trajectory when it comes to GP.

On the EBIT side, we've grown significantly more because, of course, the synergies that we realize drives a higher conversion. And I mean, at the end of the day, also the EPS [indiscernible] has come up. We're right now at 11.5% growth. So we also see that it trickles all the way down to the bottom. This has led to a situation where we are now going into the fourth quarter. So we've narrowed our grinds. We've done this, of course, because normally, you start the year with a broader guidance, and now we have more certainty when it comes to the result. So the guidance is now between DKK 24 million and DKK 25 billion in EBIT.

If we look at the cash flow, we've delivered a solid cash flow here in the quarter, even if the freight rates are still elevated, not least on ocean freight. And we've started the first share buyback program since we acquired Schenker. So all in all, that were some of the highlights from Q3. Just wanted to a few words on the integration as well. I think we are continuing as per plan. There's only a few countries outstanding, no major countries left on the integration and much of the custom integration also done. So good progress on that one.

Of course, then we just talked about the issues that we've had on Road. That leads to a little delay in the realization of the synergies. So that will happen now and be finalized in 2027. Basically, the expected outcome and also the costs in relation there to remain the same, but of course, a little bit delayed also on the special items into '27. If we look at the financial highlights for the quarter for the Group, I think the earnings growth we just talked about and I think also that the GP has grown. This is something that we are very focused on here in the headquarter that we add more value to our customers. And of course, then also that we convert that into a solid growth in the operational results.

I would say that the Air & Sea division has delivered as expected, and CL has delivered a very solid result, I should say. And then, of course, the Road results, they are clearly affected by the quality issues that we've had. The cash flow for the quarter, DKK 6.4 billion. And I already talked about the revision of the -- basically the narrowing of our guidance. So that's really the financial highlights. If we look at Air & C, I think 1 thing that is important, and we have also just added a slide on Global Products. That used to be part of the results for the divisions. And therefore, if you look here now, you will say, well, the gross profit has grown 0.2%.

But if we adjusted for the GP that we've taken out on Air & Sea, actually, we've grown 2.8% year-over-year, but that's always what happens when you move some of the volume around that it's a little bit blurry what's the baseline and then what's the actual figures. And are they fully comparable. So we just added this information on the right side here. If you look at basically the conversion ratio, it continues to increase, and we are aspiring to get up to the 50% target.

Also during the next year, well, we will definitely see an impact of [indiscernible] work we do on productivity. And then, of course, the EBIT margin also trending towards the 10%. If we look at airfreight, we grew the GP 4%. Actually, during the quarter, we did still we've had this where we sanitized the portfolio, and this actually continued a little bit into July. After July, basically, we finished this and I would say the general trend on the airfreight is that we've seen that the volumes into Europe still under pressure and not least the volumes related to automotive.

On the other side, of course, we've seen progress on the technology vertical, where we've grown our volumes and as you can see also the yield at a very solid level, almost 9,000 per tonne. And overall, as I said, the GP has increased by 4%. So we are quite happy about that. If we look at the Ocean Freight, the GP has decreased by 4% and yields a little bit down and volumes are also slightly down on the ocean freight. What we are working on right now is we are very, very much focused on the commercial activity in the Ocean Freight to make sure that we swing the trend around and I would say both for Air and for Ocean.

We've seen that we are slowly getting into a situation where we've basically leveled out, and we should hopefully, during the next quarter, start to see the inflection point where we get growth. Yield is at DKK 4,100 at the end of the quarter. So basically, if you look over the cycle, it's more or less the same as we had Q3 '25 and basically the composition of VAS and freight markup is also in the 1/3, 2/3 range. So 1/3 is like the freight markup and 23 is best. Then we come to Road. Here on Road, we can see not least on the GP, what impact the issues that we've had has on the GP in our company. I would say that difference is probably, let's say, approximately 1/3 related to extra cost due to the quality issue, so they should go.

And then the remaining part is actually that we like volume in the network. So we need to have this commercial focus now that we've solved the operational issue, we've put that behind us. It's very important that to get that message across that the quality in the network is solid. So now it's the commercial activities that we're looking into. And when we look at the commercial activities, I think it's also important here to state that how this normally works is that you try to fix the quality issue first. Now that's solved.

Then what you want to work on is basically that you want to work on making then the sales calls. Of course, in the beginning when you have quality issues, it takes a while before you start the sales cost. So we've started that in September here, really intensified the interaction with the customers, building up the pipeline. Then once the customers they accept our proposals. And here, you have to remember that we have the strongest Grupo's network days in Europe. So it's not that we can't get the appointments, the customers, they do want to talk to us.

Then basically, we have converted some of that, and then we will have to make the integration if it's a customer that needs an IT integration before we go live. So that cycle will probably take at least 90 days. So what we sell right now will then come in, let's say, in 3 months. So it has a delay impact. We can look at all the KPIs, NPS has improved. And just also, there's been some concern was the spillover on the NPS to other divisions. It has not spilled over. So they basically have a very solid NPS development in the other divisions. But of course, the Net Promoter Score has declined. But right now, it's actually -- it's had the trough and now it's increasing again. So that's really the status when it comes to Road.

We just put some KPIs here. And I can tell you that normally, historically, the performance has probably been more in the 92% range. So having 94% in [indiscernible] is very solid. So -- but as you can see, the trend line has been increasing all the time. We are concerned about -- we're very happy in August when we saw the 92.4%, but we were concerned when the volumes come back after the summer holiday, whether it would be sustainable. And actually, it's proved that the initiatives we have taken have continued to improve the delivery quality. So that's really positive. So well done to the Road division, I would say.

If we take the Contract Logistics, here, you can see that we've actually grown the ed with 50%. If we exclude the properties, we've grown it with 42%. So a very, very solid performance. Two things have driven this performance. One thing is that we continue to salute our portfolio and basically cleaning out business that don't deliver the desired outcomes. And then the other one is that we've seen -- that we've managed to compensate for that volume, we've taken out with new volume in particular for the hyperscalers. So these 2 things in combination, they are really important.

I think what is also important for you to notice that we see that based on the pace that we grow with the hyperscalers is going to continue. We can see the pipelines. They're very, very solid. So I think you should expect that the CL division will continue this journey that it's on. And of course, that's very positive because 1 of the things that we were criticized for was the low return on invested capital. And now you can see that there's a better connection, we are now at 10.9% on the return on invested capital. And the comparable figure was DKK 6.9 million.

So of course, this growth in EBIT, but also the focus on the capital that we have deployed, it has really helped us a lot. And I think you know that it wouldn't surprise me if we managed to take what can I say, another step up at year end and it would may be very proud to trend towards the 15% that we've set as a target for the Contract Logistics division and take another step in the next quarter. So well done to contract logistics on that. Then I'll just say last call, people they were asking a few questions about this global products and rightfully so.

So we've just taken a slide and said, listen, what kind of activities is it that needs an enterprise approach. So that is not part of a country-based setup and that should have a life on them. So here the products that we move to, what can I say, a separate structure. It's called fairs and events. This is where you have to have specialty knowledge for fairs, events, all these kind of things and have to have this knowledge across countries. This is very important. On the parcels, it's the same. We are 3PL on parcels. And also here, you need perhaps a more network approach in order to continue to develop that.

And then of course, the custom is always quite important as well. Normally, it's part of a country-based setup. And we've decided to make an enterprise function out of that. And this is then also so that we can serve the customer end to end. And also the technology we have allows us basically to produce on the same platform, so kind of a single system -- file system for all of that. So these are some of the main services. Actually, we also have some supply chain engineering that we we can do as well add some value and some 5PL capacity, but these activities are a little bit sort of smaller.

So now I have said a lot, and it's time for you, Michael, to go through some of the numbers and other stuff in detail. So please have a go ahead.

Thanks a lot, Jens, and I will immediately skip to the next slide here with an overview of our P&L for the first 9 months of 2020. A couple of highlights on that slide that I would like to elaborate a little bit on. Of course, you can see that the revenue has actually increased 10.5% as a consequence of the rate environment and also to a certain extent, the activity level. that also have an impact on net working capital, which I'll come back to in a second. And Jens, you already touched upon the EBIT growth, which is also nice to see, but also if you look at profit for the period has actually increased DKK 900 million compared to same quarter last year, which is also good to see.

And also the conversion ratio for the -- I think that's also worth highlighting that we have increased from 27.9% to 32.6%, driven by all the initiatives and the synergies that we have worked on. So it's also nice to see that. And of course, the net interest cost is higher than last year due to the fact that now we have, you can say, the full financing of the Schenker acquisition included for the the period, which we did not have last year, obviously.

And then, Jens, you already touched a little bit on it, but the EPS, now we actually can see that we are growing on a 12-month rolling our apps has increased 11.5% compared to the same period last year, and that's for many, this is what it is about. Then I will go to the cash flow statement that we have also a little bit highlights on that one, starting out with the adjusted free cash flow, which amounted to DKK 6.4 billion in look at the cash conversion ratio. I promise that, that will continue. But of course, it's nice to see that we can collect some money here with the cash converge ratio of more than 12%.

Net working capital slightly increased due to the freight rates. If you look at the ratio a little bit further down on the slide, you will see that the ratio is actually better than it was same, you can say, at the end of last quarter. So we are grinding our way through it. We promised to reduce the net working capital. But of course, if we get more activity and hits, that will have an impact, clearly. I also would like to highlight that we have actually on the gearing ratio, it's now 2.46 actually. Now we can only have 1 digit here, but it's 2.56%. So during the quarter, since last quarter, we've actually reduced with 0.2% on the gearing ratio.

And also worth mentioning is that since we started the integration, we have reduced net interest-bearing debt with DKK 12.6 billion as well. So all in all, I think it's a -- it's nice to see these kind of numbers. Of course, we would like to have them even better, but it's positive. The cash flow and the current state of our financial situation has also led to the fact that we have started a -- launched a share buyback this morning of DKK 1.5 billion. It's good to be back on that. I know that people are saying that we are still 2.5 on gearing ratio. But I would like to highlight that we have the journey, the path that we are on where we have decreased our gearing ratio for the last couple of quarters. It's a positive trajectory that we are on.

We do stay committed to the capital allocation policy heading towards 2x in the gearing expectedly during 2027. Of course, the ambition is to do it in the first half of 2027, but that is our aim. The reason also being for this start-up the share buyback is that we have an obligation to towards our share option program, and we have to buy back shares to be able to deliver on those obligations. So that means that we have now -- you can see on the slide here that in 2025, there was not much share buyback. So now we will see we have these columns again with the shareholder, hopefully.

But we'd also like to highlight that this is like I've said also last quarter, we are now in a position where every quarter assessed according to our capital allocation policy. So that we have started it's not necessarily -- you can say that we will continue that journey. But of course, we expect that we will have solid cash flow going forward as well. Then Jens you already touched upon the next slide here on the guidance where we have narrowed the outlook to between DKK 24 billion and DKK 25 billion giving a slightly delay due to the Road integration also have a spillover impact on the special items. We are slightly delayed on those as well. So that is the overall number.

And some of the assumptions, of course, we have some synergies that we have already realized last year and then on top this year, DKK 4 billion more and then we have the additional DKK 1 billion that we postponed into the next year. It's still a volatile world that we live in. It's highly uncertain about the you can say, the macro environments and interest rates and so forth. So that's, of course, also worth to bear in mind. In terms of Air & Sea and volume for the last quarter, we assume volume growth to be slightly below the market in Air & Sea and also yield slightly below what we have in Q4.

Our aim is still to deliver on GP growth. That's very important to bear in mind here. And for the Road, I think you touched upon it as well already. And contract logistics, we also expect to continue the growth that we have seen so far. And of course, the tax rate will remain as '28 is still impacted by this integration that we have, and then we will be able to come back to a more normal tax rate later on.

And Back to you, Jens, for the key takeaways.

Yes. Thank you very much, Michael. Just want to reiterate that Road operations are normalized. So we basically now can focus on the commercial activities that we are having. And of course, we can also then focus on driving the productivity up as well. So these are the 2 key topics for the Road division and for DSV also very important. And then, of course, the guidance we talked about that. And then the share buyback program that we've launched as well.

So I think we have confidence in what we are doing. So with that said, I think we should move on to the Q&A session. And then we can spend some time answering those. Please go ahead.

[Operator Instructions]

And the first question comes from Jamie Rowbotham from Deutsche Bank.

I was just after a few numbers, please. So in Air & Sea, how much of the 3% volume decline is deliberate revenue dissynergies or sanitizing the portfolio versus the SME activity levels declining in the Asia to Europe weakness? And in Road, could you quantify the amount of synergy shift to 27, the amount of customer volume losses you've been seeing and the likely amount of gains on property disposals for next year for 2027?

That was a little bit more than 1 question the way I count it, but we will try to answer them anyway. I think on airfreight, if we look at the development over the quarter, we actually saw the largest decline in July. And that's then more related to attrition. I would say, it's been more around the situation in August and September. So -- and that was basically what can I say, tapering off of this situation.

So I should say I would probably say that 10 percentage points based on this sort of conversation that just having here would be the remaining part of the sanitizing and then now we are hovering about the 0% to 1% decline of business in the air freight right now. So that would be the answer to that one. I think on the Road side, we do see that it -- what can I say, takes some time to to regain that volume it will happen during next year. But also to realize the synergies will take a little bit extra time.

So approximately in the neighborhood of DKK 1 billion will be pushed into next year because not only Road is impacted also the back office functions have to support that journey, what can I say, we'll have to keep extra resources as long as it's not completed the integration. Then when we look at the volume decline, we've probably seen a volume decline just shy of a 2-digit figure on the Group side in Road. So it is something. When it comes to the properties then we don't necessarily plan for any gains. But as you can see, there has been some this year as well, but we have none in the forecast.

And the next question comes from Patrick Creuset from Goldman Sachs.

In Road normally, seasonality in Q3 heavily skewed to September, I think. And would it therefore be fair to assume that most of the underlying DKK 300 million profit in Q3 enrolled was made in September. And therefore, when we're trying to look at an exit rate from the quarter to have an exit rate per month of somewhere north of DKK 200 million EBIT. Would that be a fair way of looking at? Then I don't know if it counts the second question, but Michael, if you could just clarify your comments on Q4 R&C yields, which I didn't fully get?

I think I'll answer the Road, Michael. You can answer the Air & Sea. I think normally, on the Road side, we are, of course, always a little bit impacted by the summer holidays in July and August, you have a lot of fixed cost. So you're quite right that the result produced on the roll side is basically then produced in September. Now we get good months as well, October and November. And we've also regained a little bit of volume.

So that should also help the figures a little bit there. And then December is going to be a week. And so if I should model it, I would probably add, if you take the clean figure that we talk about the DKK 300 million that you also had mentioned, I would see a slight improvement in the next quarter, but not a lot based on this. where we had because the sales cycle is 3 months.

So let's say, we've had quality issues before the summer holidays, the customers, they come back from vacation on the first of September. We are now convinced it's good, then we start selling in September then the first impact of these sales efforts the reality going to come maybe in December, but also in January, if you look at that kind of math. So it will take some time to fill the network up, but it's a strong network we have. So we get the sales calls. And we can see from the pipeline and the work that is being done that it does pay off. And then for you, Michael.

Thank you, Patrick. What you have to bear in mind here is the normal seasonality on the yield side, which we do see on the Sea side. And then also, we have had congestion, which is being a little bit lower and [indiscernible] is slowly opening up again, and that will will have an impact on the yields compared to Q3. And on the Air side, that might be less downside in Air also what Jens spoke about. We have the big season and also, of course, tight capacity. So that is kind of some of the underlying assumptions to the thing that we also have written here in the outlook.

And the next question comes from Alex Irving from Benin.

On well. I'd like to talk about the move from cargo-wise to Tango, please, in Air and C, to understand that's a little better. out on the current sea volume is currently flowing through each of those systems, especially I noticed that other external expenses in that division rose by DKK 100 million quarter-on-quarter from Q2 in Q3, shouldn't they be falling as you move your own IT infrastructure? Or how else can you explain this, please?

I think today, we proximately produce in the region 20% to 25% of the volumes on Tango. It's predominantly the larger clients that we have on that platform, so the more complex ones. We've not started the move of any rollout yet. I think we've not indicated that to the market either than rollout [indiscernible]. So we've said that we would want to improve Tango and it will also coexist with cargo wise for quite a while, so that we derisk what can I say, the rollout and the 2 systems they coexist today. So that's basically what I can say on that.

Then, of course, if you look at the cost, I think it's what can I say, a development where we've seen the Air & Sea division being a little bit underallocated beforehand in the center times. And now we've changed the allocation model to the DSV allocation model, and this is basically what impacts the figures. It can also be that now we've shifted a little bit more volume on to CargoWise and as you know, that comes also with what can I say, a very solid cost per transaction. So that impacts it a little bit.

And the next question comes from Muneeba Kayani from Bank of America.

On Road, I just wanted to clarify your comment earlier, Jens, and that 1/3 of the impact was additional costs and 2/3 related to volumes. So is that from kind of a DKK 1 billion normal? And does that mean it's about DKK 300 million of -- can you help quantify what was the additional cost? Was it DKK 300 million and that now totally gone away as we think about the 4Q performance?

And then into next year the synergies, what is the impact on synergies that you were expecting earlier versus now if that's the DKK 4 billion would have been the full EBIT bridge for '27? And what has it come down to now if it's a mid-27 full run rate impact?

I don't think we guide in full for '27 right now. That will come a little bit later, but I can try to help you with some information so that you can perhaps do some work. So I would say, if you look at the quarter in particular, July was still impacted by a lot of express deliveries. Of course, when we got it cleaned up, there was still in August, certain terminals that were not in what we call green. This is when you are about 92%. So you also had additional cost in August and also some in September, but of course, very little. And now it's totally gone. There is no extra, what can I say, cost because of bad quality.

So we would estimate that this number would probably be between DKK 200 million and DKK 300 million. If you then look at a quarter like this quarter, I would think that under normal circumstances, we should have made DKK 1 billion where we were. Then I think all the numbers they add up if you strip out what can I say, the property in this calculation. Then of course, going into next year, now we to have all this focus basically on the quality.

Then, of course, all the productivity initiatives, they have been slowed down. because the first thing you want to make sure is you have your delivery quality in place so that you have solid quality. So there are 2 tracks now. Now we drive productivity, so what does it cost to produce a shipment and of course, we need more volume into the system. And these 2 things, they will be the main focus for next year.

But I'd say, to drive the productivity up, it's something that happens quarter-on-quarter. It's a lot of activities. So what was my collection delivery cost, much more productivity on the terminals what's the utilization of the line hauls, et cetera. So these things you're working on with a very structured plan, it's the same team that solved the default that works with this. So quite certain that they will be able also to deliver on those tasks. And then on the commercial side, as I said, it takes some time for the sales cycle, and I would probably presume that it takes to regain the volume that we've lost, it will probably take 6 to 9 months into next year before we are at the same level as we were before we saw the attrition. So it will take some time, but we will grind our way to it.

So basically, you can look at the Road integration in a way. I would say as if you've almost lost a year because now we start selling and it can be that only at this time next year, we will be at the same place as we had originally planned for. So that should be the building blocks for your model.

I think it's important to also, like you said, Jens, it's important to say that there's no changes in our commitment in terms of the plans and on delivery of the synergies. But as you rightfully stated, it's been delayed a little bit. But the overall thing that we plan for is still going to happen and take place.

Then the next question comes from James Hollins from BNB Pariba.

Just a couple of clarifications. I think, Jens, I appreciate your color on the Road customer losses. If we go back to Michaels pre-close call, there seems to be a suggestion that there may have been some bleed of customers and the losses elsewhere in the group outside of Road. And I think Jens you're saying today that didn't happen, perhaps you could clarify that for me?

I'm not really sure what exactly you're referring to. If we look at bleeder customers, the area where we normally would look at bleeder customers would be on contract logistics where you would have, what can I say, activities in warehouses that you operate that basically operates what can I say, at a very low margin and sometimes even at a minus margin. So this is basically also what we described on the CL side where we say all this loss-making business, all these things that are not delivering the returns that we require, we basically -- this volume we're basically terminating now.

So I think that's typically where we have that topic. And that's been part of the CL improvement that you take a business out that maybe loses money or has very low margin and then you replace it with business that operates at a normal margin. This is, in reality, what you can see in the CL figures and look at what an impact it has.

And the next question comes from Jacob Lacks from Wolfe Research.

So on Air & Sea, when do you think the division can get back to market growth rates on volume now that we're largely through the integration?

We're growing GP already. I think this is very important to state that we do that. This is the most important metric. Then of course, the growth in EP at the end of the day, it comes from 2 things. It comes from volume and yield. So I think we've finished anirtizing, what can I say, business. If you look at the yield uplift, it's been tremendous during the last year on the Air & Sea side. So that's a job well done.

On the volume side, we are hovering around what can I say, it's basically plateauing now. So we've come out of the trough, and we're basically at the inflection point. And whether that will then be in Q4 as part of the normal tender season into Q1, I can't tell you. because we will have to see how it all pans out, but this is basically how I would model it. So if you're a little bit conservative model it into next year and if you're more positive, you can maybe think about a slight increase this year.

Then the next question comes from Cristian Nedelcu from UBS.

And apologies to come back to some of these points, but I think most of us in terms of synergies next year have around DKK 5 billion year-over-year incremental for out of Schenker and 1 of the other ones. And it's not fully clear to me should we -- roughly how much do we take out of Schenker? We take DKK 1 billion out align with the special items that you moved or more or less? And any type of color you could give us there?

The second one, the bear argument on Road if you exclude the Express cost that you've explained earlier, your run rate is somewhere around DKK 500 million clean EBIT per quarter. If I annualize that, I get to DKK 2 billion. If I don't get too much synergies next year, I could be at DKK 2.5 billion EBIT next year or 3. Am I missing anything, any moving parts from this bridge? And probably just a short time, you mentioned encase conversion ratio of 50%, the target. Do you believe in some of the quarters next year, you can already be at 50% conversion in Air & Sea or that's something more for 2028, '29?

If we take the conversion ratio on Air & Sea first, I think it's -- if you look at how it's been sort of increasing, then there is also, can I say, plans for productivity improvements into next year. Whether we will hit the 50% mark -- I mean at the end of the day, we have a long-term 2030 target of DKK 55 million. Sso we will have, what can I say, to drive it past the 50% -- and if we've not finished the rolling forecast in that detail and are 100% turnout it will go towards the 50%, I can tell you that. Then I think on the Road side, you talk about that can I say, the impact of what we're doing.

I think basically, if you look at these 2 things that are outstanding, you will have the operational basically improvements that we need to make. So that's kind of like 1 track. And then belly also on the commercial side, what is the impact of the volumes that we are missing. I think if we look into that then to get an impact out of those 2 initiatives of 50 on top of what we have this year. That would be a bare argument I would agree to that, as you said, that's the bare argument I think just as we fix default, we can definitely improve the operational efficiency.

And if I look at the impact on the sales side, I also said we can get the volume back into the system. Then if you try to model that, I'm quite sure that using those assumptions, you will probably end somewhere else under 2.5, but that's, of course, how you run your model that determines that. So yes.

And then just to clarify, if needed on the synergies, I think we've stated that we will -- last year, we had a full year run rate of DKK 800 million. Then we have said that during this year, we expect at least DKK 4 billion. Now we say DKK 4 billion and the remaining part would then come into 2027 as from January 1. Now we say we delete it with DKK 1 billion. So that will, of course, come in later during the year in 2027.

And the next question comes from Alexia Dogani from JPMorgan.

Just again on synergies and you mentioned in the statement that you're committed to the DKK 9 billion of synergies, but there is an offset -- partly offset by cost inflation and investment in contract logistics. Could you just clarify the kind of magnitude of offset that you see? And then I'm sorry to also, again, clarify on the financial impact in '27, at the CMD, you hopefully gave a slide, Slide 136, given kind of the phasing. Obviously, now there is a delay. Are we basically saying the delays DKK 1 billion to DKK 1 billion moves from '27 to '28? Or is it a DKK 1 billion realization '27 and the remainder is in '28. I think that would help everyone make sure their model is aligned with your plan.

If I start with the last 1 first, the DKK 1 billion, which is delayed, that is, of course, have fully impact from 2028, but we do expect that we will start, you can say earlier, but the full run rate would be in 2028. That is clear for the DKK 1 billion. Was that -- the answer -- was there another one, sorry?

Yes, it was the net effect, basically, you've added a statement that said -- but there is an offset, what is the offset?

Yes, yes. If you look at contract logistics for start, then you'd see that they have increased the EBIT of 50%, right? And they've also had a staff cost which is higher. So you can look at that and then say, this is what we do see. So the expected synergies in the beginning when we made the plan from CL, we have taken them out because the CL has grown the business. So that will take that 1 now. And if you look at -- I think it's -- the run rate is DKK 100 million on staff costs alone for this quarter.

Secondly, that we do see inflation also on the other elements of the cost base. And if you, for instance, take 3% into that, I think then you have the building blocks to do it.

Okay. And just to clarify 1 last point. Air & Sea and Contract Logistics at the end will have delivered your plan in terms of the financial impact. Is that right for the synergies?

Yes, you can assume that.

The next question comes from Marco Limite from Barclays.

I've got a follow-up on the synergy figures because we're saying that in '26, you guys are still planning to achieve DKK 4 billion synergies, so guidance isn't changed. Road is clearly lagging already in '26. So how are you going to get to DKK 4 billion despite Road being below. Does that imply Air & Sea and CL ahead of the plan? Or how do we get the DKK 4 billion weaker Road?

And then still related to that, I think this quarter is the first quarter where your total FTE number is not coming down quarter-on-quarter. I understand contract logistics up. Nice to see organic growth is good, why FTE is not coming down in Air & Sea, for instance. And therefore, yes, that number basically not coming down anymore in Air & Sea?

If you look at it from a total level, then you would see that we have reduced the number of 50s with around 800 during the quarter, so white collar. So I think that at least what you need to look into. Then of course, there is -- if you look at the Air & Sea, we also explained a little bit about the global products. During the quarter, we have also had a -- you could say, a move for some of those into that area.

Okay. And on the DKK 4 billion [indiscernible] Road being quite weaker than expected at the start of the year?

So the DKK 4 billion figure that was in there in the guidance was probably a little bit, what can I say, on the low side. Now you can see it's more air credit might be that we say approximately DKK 4 billion. So let's say that it might be a little bit less which could also be the case because as you say, that the Road has been delayed slightly. So I think we then decided to keep, what can I say, the same number instead of, let's say, writing 3.750 or whatever the number could be. So that's really how we've come to the guidance.

And the next question comes from Lars Heindorf from Nordea.

On the Road division, to get back to that, I understand that you appears quite confident of getting -- regaining some of that volume that you lost. But I mean, hey, this is a fairly fiercely competitive market that you're operating in. I mean will you be able to regain that volume without any kind of impact on your GP per consignments, i.e., price or maybe paint terms, which will impact the cash flow? Yes, maybe just a few comments on what exactly the path back to getting those and regaining those volumes? And then as a follow-up on that also, I mean, the customer consignments as we enter into Q4, where is that compared to what you wanted to be?

If we look at basically regaining the volumes our sales activities, the pipeline that we have, it's basically how we normally would conduct business within the various segments. So I should say that -- that is not like we go out, what can I say is with terms and conditions that are materially different because then it has what can I say, a longer-term impact. So we really have to go out and basically increase your sales activities, then that would normally lead to a certain conversion of your pipeline.

So that would be that topic. If you look at the production cost, at least what we have planned for in our rolling forecast is that we should be able to lower our product cost between 5% and 10% on what we have. due to inefficiencies and networks. So it can be on collection delivery. It can be also, what can I say, the activities in the terminal.

And then 1 of the major topics is also our line haul setup where we can drive the efficiency somewhat up so that we can deliver on those outcomes -- so let's say, on the line haul, for example, I would believe that the average utilization we have is maybe around index 90 and we should definitely be able to drive that, let's say, 5% of if you look at that and can be all the topics that we talk about so the number of stops per route, et cetera. So under connection delivery bit.

So I would say these plants, they are all, what can I say, committed by the team, as I said, that solved the default, and they are now working actively on this, and we can already see some of the first things being executed. So I'm quite confident in that.

Can I just as a follow-up, maybe on the cost side in Road, there's a sequential decline in staff costs into the third quarter, which is, I think, is that just caused by a normal seasonality. I mean, it tends to be lower in Q3 on to the holiday season. And we should expect the staff cost to increase it came into the fourth quarter?

Basically, I'm not 100% certain on that because the holiday accrual makes it very difficult to us to to be 100%. So I would more want the team to get back to you on that because -- but we take people out as part of realizing the synergies. I can tell you that on the FTE side. So we continue that journey now on Road. But how the holiday accruals have sort of impacted Q3, it has a significant impact on it. So I would not want you to make a mistake in your model. So please reach out to the team, then they will be able to give the exact number.

And the next question comes from Kristian Godiksen from SEB.

Yes. Also a question on the Road part. So obviously, there's quite a big of a delta to the DKK 2.5 billion for the Road EBIT in '27, which was a Cristian's question. And then to your own DKK 6 billion that you communicated on the back of the Q2 numbers, I guess, as you pointed out, I guess, the main moving part is the trajectory on winning back volumes. So I just wanted to get feel on how comfortable you are in winning back the volume and at what potential discount in pricing discount to win that back volume just, I guess, on the basis on the operating leverage being very high in the group part of the business, which I guess based on the underlying numbers for Q3 must have been making [indiscernible] business has been marginally less impacted?

Yes. I think I've said it a couple of times now. What you do when you do sales is that basically, you want to have, what can I say, the basically, the visits you want to have the appointments with the customers, we can get those appointments so that we get the meetings. Then what we do when we speak to the customers, we can now explain them how the quality is. The quality is very high in the network. So we have a very good product. It's the strongest network in Europe.

So in the market, for example, like Germany, we have less than 5% of the market. So of course, there's a lot of volume you can go after. That we are not in contact with. Then there's the existing customers that maybe have down traded a little bit with us, they can now see the quality is back. And then, of course, there's the customers that have a Swiss provider. We can see that on the segmentation of the larger customers, they have stayed with us. So all the complex volume they stay with us.

So it tells us something about the quality of the network and the service that we provide. It is more, let's kind of say, smaller customers that perhaps can operate in 1 or 2 markets that has a great opportunity to choose another provider. So of course, this is a focus area for us that we now go and see those customers in those markets and make sure that we basically deliver on them. Then the sales cycle I explained it takes 3 months.

But then you followed in the pipeline, how it's going, and you see the conversion on it and then also some of these things, they lead to IT integration so that we need to be ready to exchange data. with the customers in a digital format in an efficient way. So that's in reality sort of how we're doing. And when I speak to the team, I see a lot of energy, a lot of activity in the pipelines and all these things. So yes, I think that we have the right product. And yes, I think that we can deliver basically on regaining the volume. I think that's what we're all working on.

So just a follow-up on that, I guess. So to your DKK 6 billion, if I wanted to make a bridge for that for next year. I guess it's the loss of volume in terms of the sales cycle on that and then the delay of synergies, that's basically the 2 parts I need to deduct from the DKK 6 billion number. Is that the right way to think about it?

Yes, I would do it like this, I would say, listen, there's some less volume going in and then basically, the GP is a little bit too low in the beginning and maybe also a little bit on the conversion because, of course, we've been delayed in harvesting the synergies. But there's types of synergies and Road, you have to remember that. It is basically that we then merge the networks close down the terminals and take out the overlap. We already very advanced on that.

But of course, that has been slowed down due to the quality issues that we've had. We are now -- I can just tell you to give a bit of confidence -- we've got live in Poland, merged to 2 networks, for example, down a big networks. There's been no issue at all. We've merged some of the big terminals in the network. And I think we've solved all those things. we were approximately 450 terms when we were 2 companies. And of course, we have to go down now to 280 right now.

So I think we are current now right now somewhat over 300. So we've definitely done a lot of the work. And I think we've taken learnings from the things we have done and make sure that we don't see quality issues.

Perfect. And just maybe on the incremental mine, just to when I model the volume part. Is it fair to assume that an incremental EBIT margin would be around 50% for the group each part of the business due to the operating leverage?

That depends a little bit where you stand right now, of course, if you lack volume in the system, it's very high the margin, but of course, over time, that will ease out. But I would say that additional volume in a group's network definitely drives a superior conversion compared to what you are used to see. Yes.

And the next question comes from Ulrik Bak from Danske Bank.

So in terms of the targets that you presented at your capital markets say, of another DKK 9 billion in savings from IT and network optimization. How should we think about that given your comments about cost inflation partially offsetting the Schenker cost synergies and the delayed integration of road. Should we also subtract cost inflation here? And how much should these targets be delayed?

I think we're still shoot for completing what we need to do in 2030. So I would say that, that's definitely still the aspiration. I think if we look at now completing the change, what can I say, integration until next year, we should be, what can I say delivering, what kind of a solid number. that we then can build on with what can I say, the DKK 9 billion that we are talking about.

We will already start some of the initiatives next year and we are in POC in many of them, and we will then drive the productivity up. Then, of course, you're quite right. Over time, we should see a little bit less cost inflation. We have actually seen quite a bit going in to the Schenker transaction. And normally, we should try to offset some of that with productivity gains. So I would really not want to now dilute the target of DKK 9 billion. So that's kind of the feedback you can get on that front.

The next question comes from Cedar Ekblom from Morgan Stanley.

Just 2 quick questions from me. So it seems that the recovery of profitability in the Road business is now very dependent on these customer wins, getting the volumes back with those expressed costs the system. I appreciate that you're talking about a sales cycle of sort of 3 months and needing to 9 months to sort of fully recover those volumes. So I get it takes time. But is there anything that you can give us in terms of how those sales conversations are going now to help us understand how that sort of minus 9%, high single-digit volume decline is tracking as we move into January?

I know that, that won't help your Q4 volumes, but it would be good to just get a little bit of color on what those conversations sound like. And then can you just talk about year-on-year progression or lack of progression in your seafreight GP yield. You talk about 1/3 being rate, 2/3 being value add. Rates are higher year-over-year, and that yield number hasn't really moved. So just a bit of color for what's going on in the underlying mix maybe would be helpful.

Yes. I think very good questions on that. What we look about ourselves is, of course, the you have different things you look at when you look at sales. The first thing is the NPS. So what's the customer perception of us. The NPS has bottomed doubt, and it's increasing. Just want to make sure there was a spillover concern also on the NPS, whether it had impacted our CL and Air & Sea business. I would say, they're more or less stayed the same, slightly down. So I would say not really an impact. On the Road side, of course, NPS has been declining quite a bit. So now it's trough. It's coming up again, and we don't see any escalations from the customer.

So I would say, on the customer satisfaction, we are now coming back again towards the normal levels. This is the first thing. The next thing you want to do is you want to have leads and you want to have sales calls. So right now, we can say that the number of sales calls is 2 to 3x up on what we normally do. So we have much more commercial activity when we go and be the customers. Then this normally feeds into a pipeline where you have different stages of the conversation.

And then, of course, the closer you get to a contract, what can I say, the more value it has in the pipeline. So we can see that the pipeline now is much more solid than it's been before. So also that is going well. Then, of course, at the end of the day, you want to do an IT integration and you want to get the volume in and see what is the actual volume that we get based on those efforts here. And that's sort of the KPIs that we are following. And as I said, we are 2 to 3x of depending on which number of countries it is that we have on visits.

I would also say that the pipeline is definitely showing that we have the largest pipeline that we've had since we acquired Schenker, the value of it, the qualified value of the pipeline. So yes, that would normally then convert into volume that you can see into the figures. This is how we steer if you look at under the hood. Then I think on the ocean freight, I think that you basically we had 4,100 in the same quarter last year. Now we have also 4,100, I believe, this quarter. What we monitor is basically the best and basically the freight markup.

And right now, it might be -- normally, we say 1/3 freight markup and 2/3 VAS. It might be that the freight markup is 35% or 36% but it's in this ballpark that we're talking about. It, of course, means a lot of money when you run the 4,000 mark there. So I would say that we still see now the rates are fairly elevated. And I think they're definitely going to also provide for a good yield in the fourth quarter. We will then see what happens in the market.

There's been so many speculations about the rates coming off and I think the carriers have done an exceptionally good job at keeping them elevated. So I think that's what I can say right now on the rates.

Sorry, just to come back on your point on like the customer point. All of those qualitative comments are very helpful. Is there any way to put quantitative metrics around because I think that that's really the key to recovering profitability like the best pipeline since we closed China, I mean that's good to hear. But I don't know what that actually means in quantum and like 2 to 3x more customer sort of leads, et cetera. Like is there any way to think about what volumes do in Q1? Or is it just way too early to answer that question. Sorry to...

Yes. But let's say, we had index. I'll try to make it just in some index numbers. Let's say, we had index 100 in volumes. Now we have index 92. This is well -- then that's not going to -- it might be that, that will go to Index 93 or if we are locking 93.5% in Q4. And then the rest will have to be recovered in 2 to 3 quarters. This is what the value of all the words that are seen. Does that make sense?

Ladies and gentlemen, this was the last question for today's Q&A. I would now like to turn the conference back over to Group CEO, Jens Lund, for any closing remarks.

Thank you very much all for listening in. I think that we've had a good conversation about some of the important topics and good questions as well. So thank you very much for that. We will now focus on delivering the results for the fourth quarter. And in relation to that, I will really also to extend gratitude to our staff, have worked exceptionally hard in a very difficult period, not least in the Road division. So really well done to them.

And I'm quite sure that the whole team is very eager to deliver the outcome that we all look for in Q4. Thank you very much, and have a good day.

Ladies and gentlemen, welcome to the DSV A/S call for the H1 2026 Interim Financial Report. I'm Moritz, your Chorus Call operator. [Operator Instructions] The conference is being recorded. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jens Lund, Group CEO. Please go ahead, sir.

Thank you very much, and welcome, everybody, to our Q2 earnings call. We will quickly get into it. And if we move to the next slide. I think we have it -- okay, now it's moving. We can see the agenda here for the call. It's the same agenda as usual. And I just want to make sure that you also read the forward-looking statements and so that we have the compliance angle covered as well. If we look at the quarter, I think the integration has progressed as planned. We are still basically on course to complete the integration in 2026 and harvesting the synergies that we had set out to do. The quarter has led to some changes in the management on the road side in order, what can I say to bring some experience in that can handle some of these topics that are related to the integration.

But we will talk a little bit more about that when we come into the Road division as well. And then when we come to the EBIT, we delivered DKK 6.3 billion. I can remember on the Capital Markets Day that many of you had said that we had to pass the DKK 6 billion mark. And therefore, it's also good to see that we managed to do so, and it's the strongest quarterly result that we've had actually since COVID. So definitely seeing that the impact of the Schenker acquisition is starting to filter through. And then, of course, we also see here that now we've upgraded our guidance or narrowed it so that we took a little bit of the bottom away. Still, of course, we have a range of DKK 2 billion, not least due to the uncertainty that we see globally.

If we look at the integration itself, we can see that we've now done 60 countries. Many of the countries we've done are the largest, and we only have a few larger countries outstanding. So we've reduced more than 8,000 white collar employees. And of course, there's still going to be that impact of additional headcount reductions during the remaining part of the year as planned in the business case. The impact is basically that we more or less expect the same as we announced on the Capital Markets Day. So not much new to mention there. And then there's a graph on the right side, trying to also just visually explain how the impact of the synergies is going to pan out. The financial highlights, the GP up in this market, but also, of course, because of the integration impact. The EBIT also up, and we see that, of course, we still continue also to invest in integration through the special items costs, but EBIT definitely up. The EPS also up, and I think we've seen now an improvement in EPS for the first time since we acquired Schenker. So that's also very positive.

The cash flow, Michael will talk a little bit more about it, but I think there's been a little bit of comments on the cash flow already that it seems unusually high. I think we -- if we do adjust for some of the one-off transactions and they will -- they have gone into the bank account and also the high freight rates, I think the cash flow is as it should be and what could be expected. So at least when we look at it from the company side, we are comfortable. On the full year guidance, I mentioned that, and you can see the graphs below. Switching on to Air & Sea. I think here, we also had some debate on the Capital Markets Day and also with investors during the quarter because we had, as announced, seen the trough in Q1. And now we see a conversion ratio on 42%, which was also what was planned for in the business case and definitely also the expectation, I guess, in the market as well.

So really glad to see that we managed to deliver on that. The freight rates have increased a bit. That's, of course, very good for the yield because also the volatility in the market means that we can sell additional services. But of course, it has then the adverse impact on the volumes where certain markets are down trending because of the crisis. So we also mentioned here in the call that we've seen that the volumes, they are a little bit lower than what we had anticipated, but I guess that's also something that is usual in an integration that you focus more on the integration and perhaps a little bit less on the customer side. So all in all, our EBIT increased and I think the conversion rates are up. So very positive about the development on the Air & Sea side.

If we take the GP here, you can also see for air freight that we are almost at DKK 5 billion, so 13% up. And if we look at the yields, 8,700 per tonne is also in the high end. But I guess that's also due to many of these issues that you have with the supply chains being disrupted. Our most important area is, of course, these days on airfreight, the technology vertical that continues to drive volumes. We have sanitized our portfolio on Air & Sea, and we have definitely seen that some perishable volumes, but also some of the volumes that we had in relation to Chinese exports, they have declined or we've reduced those volumes. So that, of course, also has an impact on the yield because yield on those volumes was very low. So moving on to the sea freight.

Here, we see GP 4% down compared to last year. We have a situation where we are hovering around 4,000 per TEU in GP and volumes a little bit up compared to last year, but this is in particular, where we have seen a weaker volume development that we planned for, and we are taking initiatives to make sure that we drive volumes then in the right direction going forward on the ocean freight. But all in all, on the Air & Sea side, I think we are on the right track and the division is going to deliver continued progress also in the coming quarters because we are very advanced on the integration also on the Air & Sea side. Coming into Road delivered an EBIT of DKK 999 million, but we also disclosed to the market that DKK 250 million of these, they are of a one-off nature. So you can say in reality, DKK 750 million. That's then more than last year, but not satisfactory.

And what is then the explanation for this? Well, when we've been doing the integration, we integrate both large physical networks, but also large IT networks. And it's been more cumbersome when there's big networks to integrate, for example, in some of the countries mentioned here, could be Germany, France and the Netherlands. So in the beginning of the year in Germany, we had performance issues on the network and had to compensate quite a bit in the first quarter, but also into the second quarter. Actually, our delivery quality in Germany is now up to what it was before DSV and Schenker were integrated. So we have delivery in full on time.

At the 90%, 95% range, which is basically the performance that we've normally seen in a market like this. So we've also had some of these issues in some of the other markets. Of course, we take learning from these integrations that we're doing, so that we eliminate some of that risk. So there's no really structural change to the aspirations that we have in Road because it's something that we have to overcome. And then when we are on the other side of it, we actually have the same performance as we had before. But we've then eliminated one network, both on the IT side, but also on the operational side. And this puts us then in a much stronger position for driving the company forward. So we've then added Brian Ejsing's experience to the road team. He's been with the company for many years and has significant experiences in these type of integrations, and that's really what has helped us to make sure that the delivery performance goes back to normal.

Historically, if we, for example, look at the KPI called delivery in full delivered in full on time, for example, in the Sener network, it has hovered between 93% and 95%, very seldom at 95% and currently, we are at 89%. So there's still a little bit of work to be done, but we expect to be within that range in September month. And that means that then the extra cost that we have on the GP level, when you don't deliver in full on time, you have additional cost because you have to get express trucks or do express deliveries or do some things that basically then compensate so that the customer, they get a good experience and you don't need to do that. It actually drives quite a bit of cost also on the terminals. So that's what you can see in the numbers. And this is then a little bit about the road.

So there's nothing structurally wrong with our plans. This is very important for me to emphasize, but there are some transactional issues in relation to the integration that we are dealing with. Then, of course, I think the highlight of the quarter is definitely CL. If we sit here and produce DKK 1.5 billion in the quarter, the return on invested capital is moving very fast in the right direction. Last year, it was somewhat lower. And now we can really see that we are moving basically according to the planning that we have on CL. Also growing quite a bit, not least with the tech vertical here because we have this global footprint that not many of our competitors, they have where you can serve a customer on CL either in Australia or in Japan or in basically in Mexico or in the U.S. or Europe or wherever it's relevant in the Middle East.

So that definitely benefits us quite a lot. And with the run rate that we are having, we're going to produce an outcome on the EBIT level in the DKK 6 billion range for the year. And if you had asked me a year ago about whether we would be able to do that, I would probably not have been able to confirm that. But really glad to see how it's developed on the CL side. And as I said, we expect actually continued progress also in the coming quarters when it comes to CL. So very positive indeed. And on that note, I will actually hand over to Michael, who will then take you through the basically more detailed numbers, cash flow, et cetera. So please go ahead, Michael.

Thank you. Jens. Yes and Jump to Page #11, some highlights from the P&L in the first 6 months of 2026. Firstly, of course, Jens already explained that our EBIT has increased quite a bit to DKK 6.3 billion, which, of course, we're very happy with. Revenue increased 23%. So it's quite a dramatic increase in revenue, which I'll come back to the impact on our net working capital in a second in this quarter. The conversion ratio for the group increased to close to 31%. It's actually improving in all divisions, and Jens also highlighted, especially Air & Sea has seen quite an improvement from last quarter as well. So we are definitely on the right track here as well. Net interest cost is a little bit higher.

Obviously, if you compare to last year, now we have the Schenker business in all 3 months in this quarter. And then we've increased also some of our leases, which is impacting the net interest cost in that line. Finally, I think you also elaborate a little bit on that, Jens, our earnings per share. We can see that it has increased yet again from last quarter as well. So this is some of the highlights here on the P&L side. Then we have, over the years, spoken a lot about the cash flow. And as you also started out by saying, we will come back to this here. It's clear that our cash flow is impacted by higher activity in the second quarter here compared to last quarter. but especially the increase in the rates has impacted our net working capital. So it's relatively high these days.

On top of that, we have some property divestment, also coming back to the DKK 250 million you just mentioned before, where we have not received the money yet. The transaction was before month end of June, and now we still need to get the money here within the last -- the next month or 2 when we receive the last approvals and stuff like that. So we will get those money back. So it's a high net working capital, but it's very explainable to the rates and properties as well as activity. So all this is temporary, and we should see, you can say, the cash flow coming in here in this quarter in Q3. So that's actually -- we're not -- we look forward to that, obviously. And so it is under control, so to speak.

Then we talk about our gearing ratio. It's a little bit down compared to last quarter. We are ending at 2.7x, which was 2.8x the last time. So we have actually paid back debt and reduced net working -- net interest-bearing debt with DKK 7 billion compared to when we started. So I think it's -- that's a lot about the cash flow. So that's great. And we actually have -- still have the target to come back to a normalized between 2% and 3% on an annualized basis. But of course, the rates is impacting us right now. Then on Page #13, this is the financial targets for 2030. I know we spent a lot of time going through those at the Capital Markets Day a couple of months ago. So it's just to -- some housekeeping to have them in here. They, of course, remain unchanged also on the road side. So from a strategic point of view, the way that we are heading, there's no changes during the quarter.

So we still continue on the road map that was, you can say, presented at the Capital Markets Day. And of course, we are still confident that we will achieve the financial targets, and we have plans to do so. So that's just to conclude on that one. Then we have, like Jens mentioned, we have actually narrowed our range of outlook. We have increased the bottom from DKK 23 billion to DKK 23.5 billion. So of course, it's due to the fact that we have already now passed 6 months. Some would could argue that the range is still a little bit high, but I would also say that the uncertainty, which we look into is also quite high. So for the remaining part of the year, we expect the Middle East situation to be as is, and I do not -- that's how this is the information that we have right now. So we need to work with that as an assumption.

Then for the Air & Sea market, we expect for the remaining part of the year also to grow low to single -- mid-single digits. And also that the yields will slightly decrease on that one. For the Road, it's also a little bit low single-digit growth in the road market. And then, of course, like Jens talked about that Brian works on the recovery plans in the areas just mentioned before. So overall, we increased the bottom of our guidance, and we continue to be confident that we are on track to deliver on the guidance as promised to you guys. And then back to you, Jens, for some of the key takeaways. Yes.

So I'll just reiterate that the earnings momentum is definitely positive in the company, and we look forward to continue that journey also in the coming quarters. And then I think the Schenker integration -- very soon, we will not be talking much about that anymore because it will be something that is history. And then at the end of the day, of course, always pleased to be able to narrow the guidance in the higher end of the range. So with that said, I think we are basically ready for the Q&A session. [Operator Instructions] But I'm quite sure the operator will do that as well. So let's move on.

[Operator Instructions]

And today's first question comes from Alex Irving from Bernstein.

My question is on road. You explained the issue that you're having is you having right cost to get to the right on time and in full delivery quality. How much of that cost is used to add in Q2? And how do you expect that to trend into Q3, Q4 and early next year? In other words, when do you think we will be back on track? And is there anything else to highlight that's weighing on the division beyond delivery quality costs?

No, I would say that if you look at the first half year, we've done some calculations about it. it's definitely more than DKK 0.25 billion that it's cost us, and it's probably even closer to DKK 500 million that we are talking about, but it's estimates that we are talking about. And every percentage that you are below, it costs you a significant amount of money, not only on the GP, but actually also on the administrative burden that you carry. And this is the reason why that once we then get back to the normal range, right now, we improve what can I say the -- we call it default. Delivery in full on time with approximately 1 percentage point per week. So getting back then on track and eliminating that cost here during the third quarter, that is the primary focus that we are having.

And then basically, we should be able to take that, what can I say, burden away from a financial point of view, but definitely also from an operational point of view and a customer service point of view. So I think that's basically what we are looking into.

And the next question comes from Cristian Nedelcu from UBS.

Could I ask you on the Q3 EBIT? Could you talk a bit about the building blocks, seasonality helping quarter-on-quarter, incremental synergies? Any other moving parts? I think consensus is EUR 6.7 billion. Do you feel confident that the building blocks can help you reach that? And if I could just follow up very briefly on the prior question, EBIT margin-wise in Roads, how should we think about Q3, Q4? It sounded that there should be already an improvement in the underlying EBIT margin in Q3. Did I understand that well? And any more color there?

If we take Road, I think there's a big summer period in Q3 that always what can I say, has a significant impact, if you said on a lot of infrastructure. And this goes for June, July and August, obviously, where you will have that headwind. September will be a good month normally when it comes to that. Then right now, we are improving, but -- and we expect that it will help throughout the quarter as we are talking about it. But we don't really guide on a quarterly basis. But when you look at the company in general, we need to see improvements in -- of course, in Air & Sea, where we get the impact from the synergies that you also saw now we make more than DKK 1 billion more in Q2 than we made in Q1.

We need to turn the table around in Road. I don't think that we're going to see the full impact of that in Q3, but definitely into Q4. And then on CL, I think we will continue what can I say, the slow grinding way forward. I think that's what I can say because very soon you will ask for monthly budget as well, and we guide on a yearly basis. So I hope this answers your question.

And the next question comes from James Hollins from BNP Paribas.

Mike, if I can come back on the free cash flow. Is there anything underlying that you're concerned about in the free cash flow performance? Obviously, you've made a very clear statement that this effectively normalizes from Q3 onwards. Is that fair to say you will see a normalization? And very obviously, does this impact your view on the potential speed with which share buybacks can come back in.

Yes. I, of course, expect that the cash flow will come because it is temporary and there's no underlying challenges in there. So we, of course, expect that, that will come back. And then in terms of potential share buybacks, like I have said also previous quarter, we do estimate, you can say, every quarter, how is the cash flow looking for this quarter that just passed, how will it look next quarter and then how is the gearing ratio looking? And then based on that, we assess whether we will be able to start a share buyback. And that methodology will, of course, continue. But as you can see for this quarter, where we have an interim, you can say, tie-up capital in our net working capital, we actually want to get that in the bank here in the next quarter, and then we will assess whether we are in a position to consider it again.

Just to reiterate that there's no change in our policy.

Q3, would that therefore indicate likely share buybacks announced at Q3?

No, I would not say that, that is likely to Q3. We assess it every quarter. And as since rightfully mentioned, we also have our capital allocation policy, which we stick true to. We also have our rating agencies. So it's a mixed, you can say, development that we need to see before we start the share buyback.

And the next question comes from Patrick Creuset from Goldman Sachs.

Good to see the clear improvements you're making in Air & Sea and CL. But I think you have 2, as you say, temporary issues in terms of working capital and the Road EBIT in Q2. And I think it would be helpful if similar to Q1 where you spoke about Air & Sea Q2 performance above 40% conversion, you've delivered 42%. And if you could be perhaps a little bit clearer on the Q3 and Q4 path on those 2 items to confirm they're temporary. So Road underlying EBIT performance, EUR 750 million in Q2. It sounds like Q3 would be sort of in a similar range and then you're suggesting EUR 250 million, EUR 500 million sort of one-off costs flowing back up in Q4.

Is that kind of the right way to look at Road? And then working capital, EUR 2 billion negative flow in H1 overall, and we understand the building blocks, but -- do you expect to recoup most in H2? How much in Q3? And any sort of rough directional guidance would be helpful.

It is -- thank you for the question. The net working capital, we do expect that, that will -- you can say the cash flow will come in here, as said, it is temporary. And remember also, like we also have written DKK 1.8 billion is DKK 1.8 billion is due to some of the property divestment of the legacy Schenker properties. And of course, the transactions are closed, and we will have the money here within this month or next month. So I'm quite certain that this is a temporary issue. In terms of the projection of net working capital, of course, it depends on the rate development and also if we kind of start getting more volume and activity in.

But overall, of course, we do expect that if it continues as is, of course, we should have NSA brought down to in the range of between 2% and 3% over the next couple of quarters.

I think the seasonality on working capital is, unfortunately, so that it's always the best position at year-end. So there will always be a headwind when it comes to the year. But as Michael says, I think the property money they have more or less gone into the bank account. There might be one outstanding. So we are 100% certain on that.

We actually did receive some money last week on.

Yes. So that -- and then the other one, as we said, nothing structural. When it comes to Road, I think it's probably a fair way that you look at it that the next quarter it's going to be also because of the seasonality weak. And in the fourth quarter, we're going to get back on track. As I said, when we've done the integrations in the markets, then we come back to the normal quality levels that we have seen. We can also see that we then can -- what can I say, achieve the productivity that we require in order to deliver the outcomes that we have planned for. So sometimes when you do an integration, things require that we take some extra steps. This is not unusual. But as long as it's of a transactional nature and not of a structural nature, then I think we're going to solve it.

And the next question comes from Jacob Lacks from Wolfe Research.

So your guidance incorporates lower Air & Sea yields in the back half relative to the second quarter. Why is that just given everything going on in the ocean market right now? And do you think that's true for both 3Q and 4Q? And then do you think you can get to positive Air & Sea volume growth in the second half as you lap the Schenker acquisition?

Yes. No rolling forecast, this is what we are planning for that we get growth back in the latter part of the year. And then, of course, if you look at the yields, there's normal seasonality where they do taper off at the end of the year. Then depending on the geopolitical environment, this can, of course, fluctuate a little bit. And I think we have as little insight into this as you may have or not. I'm not sure you know, but at least expected that there would be a resolution in the Middle East. And now it seems as if it's going a little bit in the wrong direction if you're looking for a resolution. So let's see what happens. I think that's the best thing we can say right now. But of course, we react to it depending on what happens in the market.

And the next question comes from Muneeba Kayani from Bank of America.

I just wanted to go back to understand Road a little bit better. So did you have any one-offs in Road in the first quarter? I just want to understand why kind of this operational issues came up in the second quarter and there was nothing in the first quarter. So that's one thing. And then secondly, just related on Road, should we expect any more one-offs related to property transactions in the second half? Because my understanding is that you still have those ongoing in terms of the property divestments.

I think if you look at Q1, we started many of the integrations in Q1. So they didn't really necessarily have that much of an impact. It really filtered through into Q2. So -- and then, of course, when you produce your work in progress, sometimes you do it a little bit based on estimates as well. And then when you see the real outcome, then -- so there might have been some accruals were they 100% accurate at the quarter and probably not. But this is not unusual that can say be DKK 50 million or DKK 100 million from one quarter to another. If we then sit and look at it, as I said, it's probably driven a cost between DKK 250 million and DKK 500 million during the first half year. So it is something it's meaningful.

When it comes to the divestment of facilities, we continue to follow our asset-light policy that we've had for many years. And when we then divest facilities, we will then also, if there has a financial impact, disclose it. But we don't, what can I say, plan for this in our guidance because this is a very transactional -- of a very transactional nature. And therefore, we don't know -- we have no certainty on the outcomes before what can I say that you've had the kind of like an auction on the different facilities and what are people willing to pay.

And the next question comes from Alexia Dogani from JPMorgan.

Just a very quick follow-up on the EUR 250 million to EUR 500 million impact to H1 performance in Road based on these issues. Is this all cost? Or is there some lost revenue in there, if you can just clarify that? And then my real question is, obviously, we saw you not that long ago. I would imagine these issues must have been brewing in the background that you were trying to fix. Clearly, it's not possible to fix them very quickly. It's a big integration. It's quite complicated. I guess what else is on your radar at the moment when you look at performance week-on-week on this integration? Are there any other areas that you are actively problem solving that we should be aware of?

Because ultimately, I think everyone understands it is a complex integration, the largest you've done. There's a lot of systems, there's a lot of network. But being a little bit more, let's say, understanding of the issues that you're facing on the ground, I think, would help us all when we look at kind of our models and our expectations to be able to basically measure you with realistic kind of progress.

If we look at what can I say that costs less revenue. We could potentially probably have had more growth. Normally, we do see a lot of revenue attrition when you do M&A. So that's really hard to judge. But the cost side, of course, we can see that the GP when we produce is lower. So I think that's probably where the main part of the number stems from. When we then take issues in certain areas, I think we are quite transparent about what can I say what goes on in the company. I would like to think so. I would say that the integration when it comes to the Air & Sea side is progressing as it should. I don't really see any big areas there. Of course, we need to deliver volume. This is the main task when it comes to Air & Sea. I think this is clear for everybody.

I think on the CL side, I think the numbers they -- at least when we look at them, they speak for themselves. So also especially to be able to scale and drive the company forward. And then we have these integrations on the -- it is in relation to the DSV volumes that are moved into the Schenker systems in Europe. This is what we're talking about on the road side. And that was really kicked off in the beginning of the year, and I believe that we saw each other in the beginning of May, where we had the first indications of that now 2 months more have lapsed or actually 2 months and a little bit more. So yes, there's been some new information. I don't think it changes the case structurally.

This is very important for me to emphasize. We've also seen that some of the areas where we did have issues, they are back on track. So all in all, we don't really -- necessarily, sometimes you will have a reaction, what can I say, to negative information like this, but it seems rather, what can I say, significant reaction. But I mean, the market does what the market does, and we will then, of course, make sure that we solve these problems and deliver the results that we have set out to do.

I think it's also fair to say, now we see things, then we address them. And as we also write in the announcement, it's a couple of large countries. So I think we have been more or less through all the different scenarios. It can, of course, can be that there are some few remaining part left. But overall, I think the combination of systems and countries and stuff like that, we have been through a lot of the scenarios and taking some lessons learned there.

Then the next question comes from Cedar Ekblom from Morgan Stanley.

I've got a question on your staff cost numbers in terms of number of employees. So I can't really square what's going on at the divisional level with what's going on at a group level. So we've got staff costs down across the board, which is good since the Schenker integration, but the reduction at the group level is far more modest than if we look at the divisions. And so the question is, why are the heads at the head office level not actually moving in the same way as the divisions? And actually, on a sequential basis, I think you actually might have added a few heads at the head office.

So a little bit of color, please, on sort of the difference between the operators at the local business levels relative to maybe your more central functions, that would be helpful.

Thank you. It's a good question, and you're absolutely right. In line with the integration, we are also consolidating more and more tasks and works that flow in some of the group entities. So it's very well spotted. That is why it developed as it does for the group part. And I do believe that.

A bit more color on how that normalizes or -- because it would be quite disappointing to see all these heads come out at the regional and business levels and then just see like the total number shifting around to head office functions. So a bit of color on the catch-up or the alignment there, that would be helpful.

It will be done in line with the country rollout. So you can say it's around 2,000 FTEs that we have added.

But I think it's fair to say what we have done is just so that you don't think it's administrative people. We've created what can I say, a consolidation of certain activities. So let's say, custom clearance could be, for example, some of the Parcel Express activities and some other activities under a label that we call Global Products. We don't disclose that to you with the P&L right now. We may do that at a later stage, but it's operational activities where, let's say, you do customs formalities. Then instead of having it both in Road and in Air & Sea and in contract logistics in the same country, we're actually carving that out and leaving that into the fourth division.

It's also in line with the strategy that we explained to you on the Capital Markets Day. By consolidating this, we'll be able to use the same tools and also outsource some of this work to low-cost areas and drive, for example, the synergy case that we need to do when we deliver on the basically improved financials on the custom clearance side. And this is actually the same we do for parcels and some of the other services that we are producing. So this is the reason why that you actually get a significant higher headcount in the headquarter. I'm quite sure if you speak to the IR team, they will be able to tell you what is the development in the classic administrative part and what is the development in the fourth division part.

And I think that should give you what can I say, the information that you need for your basically forecasting in your spreadsheet. And also show to you that we don't creating administrative jobs in the headquarter big time because that's not the case. It is centralization of business tasks.

Can I just ask a follow-up? So I understand that fully and aligned with the strategy. When it comes to that fourth division, where are we in the journey of reskilling that division, increasing headcount? Does that need to continue from here? Or have we got the right resource in place now to leverage your central functions? And then is there a percentage of that headcount in that fourth division that is sort of developers linked to your efforts on productivity and AI rollout? Because obviously, those people probably cost quite a lot, very highly skilled people.

I would say that they sit in our normal IT budget, and they are not singled out. We have a team, what can I say, that runs AI and many of these technologies that we need to do. It's actually more on the change management side that you need the resource, and we will then country by country roll it out. So there will probably be more people moving out of the divisions as we progress on this journey. I think we have still some ground to cover when it comes to that. But I think that you will be able to get the details basically from -- but they will then be minus in the division and then plus in this global products category, what we are talking about.

And then, of course, we drive the productivity. We already see that this, of course, happens, and we have a what can I say, some aspirations on that journey. We have to deliver DKK 6 billion to you. And the consolidation of, for example, the customs area will probably deliver 12%, 14% of that number. So it is something of productivity that we have to increase in this area.

And the next question comes from Lars Heindorff from Nordea.

It's a follow-up on some of your earlier comments, Jens, you said that you have taken initiatives to increase the volumes in sea freight in the coming quarters. And can you just elaborate on, I mean, what specific initiatives have you taken? And then as part of that question, Q3 will be the first quarter when we actually can start to look year-on-year volumes instead of talking quarter-on-quarter. So do you expect when we get to Q3 that you will be able to show positive year-on-year growth rates in volumes in Air & Sea?

Yes. As I also said, the rolling forecast shows that during Q2, we're going to get out of the -- our Q3 -- the second half of the year, we're going to get out of the trough so that we then come back to taking or growing the business again. The initiatives that we're taking is, I mean, what we are doing is every country or every area has a book of business. It's assigned to people, and we have target setting on it and then we drive what can I say, sales according to this target setting in relation to the customers. So I think that's basically what we try to do if we take it all overall. Then, of course, certain customers, you need to drive, what can I say, with vertical expertise on top of that.

And other customers, what can I say is more like general cargo and the customer segmentation, then you sell to the customers, let's say, you have very small customers, perhaps more a digital interface where the larger the company gets that you interact with, the more specific it is and the more planning and work it requires. So I would say that, that is all ongoing, and we have to prove now that we can capitalize on the capacity that we have and deliver growth.

And the next question comes from Harishankar Ramamoorthy from Deutsche Bank.

Maybe I can revisit one of the earlier ones on Road. When you spoke about some potential impacts to revenues, would it be possible for you to give us a sense of underlying like-for-like growth or, say, the churn in percentage terms? And then maybe one on -- a quick one on the minority interest. I find that, that's gone up quite a bit. Any color on what's driving that up?

I think if we look at Road, I'm not 100% certain. It's always difficult to say exactly what is the market and what are we. But we are probably a little bit behind the market. And once the quality issues have been resolved, the network should be stronger than before, and we should then be able, what can I say, to come back to normal growth rates. So if I was sitting with your spreadsheet, I would probably take a couple of percentage points off. We've anyway said that on the integration that we are going to lose a bit of GP. So we are definitely within those parameters. When it comes to the minority interest, I think Michael can say a little bit about that, but that's a good explanation, I think.

It's right that it's quite high for the quarter. As always, when we go into these integrations, then -- not as always, but in many cases, the acquired business have a lot of JV interest stakes in different parts of the world. And when we go in, we want to clean that up. So we get in control in full, enhancing our network. And then cleaning that up means sometimes that we have to pay out the minority share to the different JV holders, and we have been working in exotic countries to clean that up. So that should be, you can say, predominantly one-off this quarter we have had in Turkey, Japan and Bahrain.

So we have a lot of JVs that we clean up, but the biggest part has been cleaned up.

So one-off payment of dividends as part of acquiring the minority entity and then basically buying the remaining of the shares in the units. So it can be several years of profit that has been accumulated down there. So there's no correlation with the line minority interest actually going forward, hopefully, we own now a bigger part of the company, as Michael says. But then, of course, the part where we still have minority, of course, it's a few contract logistics operations in Turkey and Japan. I believe it is. The rest we are in 100% control of now. So -- but well spotted, I would say.

This is how we have to treat it from an accounting point of view. It is part of the, you can say, profit distribution.

Okay. So sorry, just a follow-up. Should we expect any material cash outflows towards the acquisition of these minority interest going forward?

No, no. It's not significant. It's always, you can say, many smaller ones typically. So it's not a big outflow.

And the next question comes from Marco Limite from Barclays.

I've got a question around the EUR 250 million capital gain in Q2. Why are we seeing a capital gain in Q2? And why we didn't say -- we didn't see any capital gain in Q4 and Q1? And I guess related to that, where are we in percentage terms versus the EUR 2 billion asset disposal that you have guided for? Are we just the start midway -- how many transaction we should expect going forward? I'm aware that you said that we should not expect any -- or the guidance does not reflect any capital gain beyond the guidance, yes, are there more capital gains that we should expect going forward?

I think we've already explained on the capital gains that we are not expecting what we are planning for gains. There's an opening balance adjustment. So let's say, if you had some gains in the early part of the year, you would have had to adjust that in the opening balance if they related to a Schenker facility. So that's really how the accounting rules they work. Now we've then divested some here in the second quarter. And I think Michael can tell a little bit more about the volume and where we had on that. So perhaps you can say something on that.

Yes. You can see that in the cash flow statement, you can see that we have sale of property, plant and equipment, roughly DKK 4.5 billion for the first 6 months. So we are grinding our way through it.

So if DKK 2 billion is DKK 15 billion, then we have done 1/3. And we will continue to divest those facilities.

And just to be clear, so is the accounting treatment different now in Q2 versus what it was in Q1, for instance?

Say, after 12 months, you don't adjust what can I say, the gains in the opening balance anymore. When you do the purchase accounting, you have 12 months where you go in and make an estimate what's the value of the asset. If then there is a transaction and the value crystallizes and it's different, then you have to adjust that in the opening balance. Once you then pass what can I say that point. There can be many things that leads to an adjustment on the facility because you would use certain assumptions when you make the valuation for the facility. And if some of these assumptions they change or the market, for example, for investment in property changes afterwards. then, of course, the outcome is probably going to be different from your initial assessment.

Okay. And just to close off the topic, did you have any capital gains or sale and leaseback gains in Contract Logistics in Q2 or in the first half?

No.

No.

Then the next question comes from Ulrik Bak from Danske Bank.

Just on the cost synergies, you're right that the impact increased in DKK 300 million in Q2. But looking at group fixed costs, they only declined around DKK 56 million Q-on-Q. And I acknowledge that in Air & Sea, fixed cost decreased around DKK 300 million. But at the same time, the group increased by more than DKK 200 million, which is probably what you alluded to earlier on this Q&A. But where do we really see those DKK 300 million in cost synergies also considering that Q1 cost level was elevated?

I think if you look at it -- and thank you for the question. If you look at it, then if you look at our Contract Logistics division, you actually see that there is an increase quarter-on-quarter in the cost there. And if you track that to the development of the business, I think it's fair that it's been worthwhile investing in some white collar workers if you look at the conversion ratio and the EBIT margin that they have. So this is the main reason, obviously.

I think this is what you need in your explanation and will stack up.

And the next question comes from Arthur Truslove from Citi.

The area I wanted to focus on was just the Sea side. So clearly, volume progression Q-on-Q was a little bit soft in Q2. I guess what's the sort of opportunity to grow volumes going forward? And what are you expecting in sort of Q3? Are you expecting more normal seasonality? Are you expecting some catch-up? And when should we sort of start to see you grow back in line with the market again? And then I guess -- and actually, just finally on that, when would we expect to see you go above the levels seen in the previous year? And then also on Sea on yield as well, the CCFI index is up very significantly in terms of what you're going to be recognizing in Q3 versus Q2. So I just wondered why the gross profit per unit in Sea should not be up meaningfully.

I think that was quite a few questions, but let's try to see if we can answer them all. I think if we look at the ocean freight, we already explained what we are doing on the customer-facing side. I also think now given what can I say, the network capacity we have on LCL and many of the products that we have on ocean freight, they are definitely market-leading and very strong. So that should help us to continue that development on ocean freight. I think if we look at the ocean freight, we have also invested quite a bit in the sales force, not least in Asia. So that should hopefully also drive some outcome in the coming quarters.

I think when it comes to the yield side, I think we are now at 4,000. So it is somewhat higher than we would normally plan for. And I think you're right, there is a chance that we may even get a little bit more expansion on the yield into the next quarter, we will have to wait and see. Then when it comes to what can I say, we have now to have reached the trough, and we have then to see that basically we catch up with the market and start to deliver, what can I say, performance that is satisfactory. And this has to happen here during the second half of the year. But hopefully, we can also start to see some of this also when we announce what can I say, the next quarter. This is at least what we have in our rolling forecast.

And the next question comes from Kristian Godiksen from SEB.

Just a quick question on the road from my side. I was just wondering what are the plans with Brian Ejsing in relation to the role of both having a role as COO and also CEO of Road?

I think the plans are now that Brian stabilizes the situation. And once that is done, we will then start to discuss how, what can I say, to drive the succession in road as we normally do. So we will take our time. Brian is doing a good job. And since CL also reports to him at the end of the day, but that's doing fairly well, he can spend his resources on the road side, which is actually also doing and doing a great job there.

So just to be clear, the intention is once you progress more on road, then Brian will step back to focus solely on being a COO and then you will have a succession in a new COO role. So you have 2 separate...

We will probably get there, but let's see how it all pans out now and also how the workloads, what can I say they spread out. But as I said, right now, Brian he can double head and do both jobs. He does a very excellent job on that. And -- but the idea is, of course, that the structure that we have that we get a solution in the little bit longer term.

Ladies and gentlemen, this was the last question for today. I would now like to turn the conference back over to Jens Lund for any closing remarks.

Well, thank you very much for your interest and your time today. I think we've had a lot of good questions, not least when it comes to Road, but certainly also to the cash flow situation. I hope that at least you feel that we have confidence in our ability also to deliver the outcomes that we need both for the year, but also in the coming quarter. So we look forward to the conversations that we're going to have with you bilaterally now in some of our investor meetings. And then we look forward to speaking to you again at the end of next quarter. Thank you very much for your interest, and have a continued good summer. Thank you.

Good morning. Welcome to the Capital Markets Day of DSV. My name is Stig Frederiksen. I'm heading the Investor Relations team. Pleasure seeing so many people here today and also behind the screen.

I'll do a few housekeeping stuff, and then I'll give the word to Michael. First of all, you can see and Michael will show you, we have a very packed agenda today. So like in school, please be back during the break after the break, so we can start up productivity, efficiency, keywords. Secondly, there will be Q&A sessions. And I will do the stuff here. But for you watching from home, you can always start asking questions already now. You don't have to wait for the Q&A session to start. You can do it during the presentations. And you can scroll down and put in your name and firm and then you can write your questions and then we're going to pick them up here. If there's any issues with the WiFi, try a couple of times, then you should be okay. And then we also have to do this one just for good practice, forward-looking statements. Please read it. There are some future statements in our presentation today. And with that, I give the word to our CFO, Michael Ebbe.

Thank you, Stig. This is also a welcome from my side. It is, for sure, a day that we have been looking forward. I know that some of you -- many of you have also looked forward to this day. So I hope that you will find the day very beneficial and also it is, as Stig mentioned, a very packed agenda. But good to see you all.

We are, for sure, at a very exciting moment in DSV, also a defining moment. We are working very hard every day to close and complete the acquisition and the subsequent integration of our biggest acquisition ever, the Schenker business. And as we have said, we are working very hard to do that by the end of the year. At the same time, it's not a secret that we live our market in a volatile environment that we are working under, all the geopolitical things that happens and changes and, of course, the pace which AI and tech drive and impact our business. So it is, for sure, a moment where we really need to be ready to move to the next steps, which we will come back to later.

So today, we will share here our direction and our ambitions for the next phase of DSV that our CEO, Jens Lund, will come back to in a second. It's also sometimes nice to see what we have achieved so far. I know you guys, most of you expect what will happen tomorrow and how can we be even better. This is also our ambition for sure. But sometimes you also need to reflect of what we have done so far.

So far, I do believe that we have been able to show strong earnings growth, the 16% CAGR since 2016. We have excellent M&A record. We have done many integrations, and we have done them very fast. And like you also noticed that this one that we are about to conclude on, also here, we are doing quite fast. With all the acquisitions and the organic growth, we now -- turns out that we are #1 size-wise in our logistics industry with industry-leading margins as well, so we can deliver the profitability. So I do think it's also worth noticing sometimes what we have done so far. Of course, this is a foundation for the next steps that we will come back to.

As said, we have a very interesting but packed agenda. Now Stig mentioned that is like you have to be back in time like you did in school. I don't know where you went to school, but in some cases, it took a little bit of time to get in after the pause. In a few minutes, Jens Lund, our CEO, will share his thoughts about our strategic direction, followed by AI and tech section. Then we will go into a commercial area where we have the pleasure of welcoming one of our very valued customers, adidas, who will do a presentation. After that, we will go into the sections headed by the divisions, who will present the different strategic priorities in their respective divisions. And lastly, I will do a sum up of some of the financials. So housekeeping questions and I guess, also share some thoughts around the financial targets.

This is the speakers that you will see today. This is just so you have the face of. I know some of you met them yesterday. In a few minutes, Jens will talk us through the team here. So I'll not spend that much time on it in reality. What I will do is that now I will have you to share a moment with us because we have actually presented and prepared a brand-new brand video that will come on stage right now. So please take a moment to see this brand video. And then right after that, Jens will come up and kick the day off with the strategy and priorities. So thank you for being here. Welcome to all of you.

[Presentation]

Good morning. Good to see you all. I had the pleasure to meet many of you yesterday as well, and looking forward to a good day together with all of you here in the room, but also together with everybody online. We have been very excited to have this day and have prepared an extensive agenda for you. Now we've just seen the movie and actually, I showed some of the people that I was sitting at the table with our humble beginnings yesterday, the former headquarter of DSV, basically a little pavilion next to the founder's home where we came from. So I think it's an amazing journey that the company has been on.

And this year, actually, we will be 50 years. If you go up there, you can have a look. There's actually a Board and some descriptions of the journey of the company. And I think it's fair to say that a lot has happened over the years. And I would certainly hope that some of you would also go up and have a look at this as well, the team has prepared well.

Somebody asked, so why do you have this drone there? It's because we use them for deliveries for some of our customers. And we also have a little truck outside where we can show autonomous driving and how that looks in a truck. We're actually using it and piloting together with Volvo in the U.S. on that as well. So some of these things that we would like to show you as well.

But before we get to that, I will talk a little bit about some of these topics here. So where do we come from? How does the market look? What's our plan? Talk a little bit about M&A and an update on the Schenker integration, where are we at. Then, of course, our customers, very important. I mean that's the reason why we are here. Operations. This is basically where we come from, operational excellence. And then, of course, also technology is something that is top of mind right now. So we will share some thoughts about that. And then I actually have the pleasure of inviting Jesper up here also to present on leadership. Leadership is very important if we want to deliver on all those topics that we will be talking about today because, of course, the technology is important. It's an enabler. But it's really the people that we have in the company that make the changes and that make it happen. And it is a people's business. We always have to remember this.

Good. So also, if you go up and look here, I mean, the company was founded in '76 on the 13th of July. So this year, we will be 50 years. It was basically founded by some hauliers that had problems finding work, and they really had no resources. So very poor from the beginning. So of course, asset-light, basically have tight capital allocation, has been with the company from day 1.

I think the other thing that sort of also meant a lot, if there was no work, there was no food on the table for these hauliers. So really a tough start. We've tried to keep this startup mentality in the company so that what we do, it actually means something. This culture has stayed with us forever ever, ever after with, what can I say, ownership with transparency with that -- we get the things handled and take care of them. So operational excellence.

This is where the company comes from. If you look in the bottom, you can see this is very much then people-driven. Then on the transparency side, actually way back, very stringent reporting on what happened every week was actually already prepared from day 1. We've, of course, kept that transparency in many aspects because it empowers the people that take decisions. It's really important for us. We see this every time that we acquire a company also today that the allocations they are not accurate. The management information that they have has, what can I say, less quality than the information that we have. And it really empowers our people. So this is a very important part of our culture.

Then, of course, if we go into the second phase, then we've had to work a lot with the transparency, but also the productivity we've worked on over the years. Now you can see, as I said, the drones way back, DSV was very fast in was getting an AS/400 in or having radio communication with the hauliers at that time when there were no phones. So I think as a company, we've always embraced new technology as fast as we could in order to ensure that we are part of the future and that we will not get stuck in the past with, what can I say, legacy technology.

So we've done a lot on the productivity side when it comes to this. Of course, the most important part was that we introduced basically the integration platform in the mid-zeros, which is still what can I say, what enables us to do the M&A today. Today, it's then being upgraded to something we call the enterprise data platform. We're going to talk about this a little bit later. But it actually provides just more transparency and more productivity than the old way that we did it.

Then the scalability, DSV has also in the zeros and before that, been growing quite a bit through M&A. Many audacious moves have been done by the company. I think we've never really doubted that we could figure it out. So I think we had the courage and also the team and the support from the Board and the investors to do all the things that we've done over the years. And I think it's very important that you have all this because then you don't spend too much resource thinking and managing your stakeholders.

So also when it comes to scalability, it's important that the organization scales so that when the company gets a new size -- yesterday, I got the question, "So when you acquired Schenker, what kind of problems did you then encounter?" And of course, when the company gets larger, the distance from top to bottom, it gets also larger. So we have then to cater for that so that we still keep the ownership and the transparency for everybody.

And then, of course, the resource allocation, the connection to you as well. It's really important because when we have a platform that scales, we have productivity, we have transparency and we have a strong team, then we need to deploy the resources to the capital allocation. And this is basically then an extended arm of what you do, and we use the same methodology when we do M&A or when we do internal projects so that we have to hit a certain hurdle rate. Otherwise, we don't really want to deploy the capital.

So this is then now DSV 2.0, basically the next part of the journey that we are talking about. And what is now happening is that we will now go into a phase where there's new technology available. I think many people are focused on the AI. We call it actually AI in tech because AI, the way we see it, it can't stand alone. It has to go together with our stack, in general, so that we can leverage on it. If it's only AI for the sake of AI, then it's really difficult to transform the business. And that's what we want to do in DSV 3.0 so that we can get the productivity improvements that the technology allows us to do. So we will have even greater transparency. We will have more productivity, and it will be easier for the company to scale when we have this technology introduced all over the company. And then, of course, if we have all that, then we can do even more efficient resource allocation at the end of the day.

So the building blocks on the bottom, a little bit of the story of the company, you can see on this slide. This one, most of you know, so I'll not spend too much time on it. I think even if we are the market leader, it's really interesting that we only cover approximately 6% of the global market. So our industry is very fragmented. And it's quite unusual these days that you have industries that are that fragmented. I think it's got something to do with legislation, history, legacy and how our industry was organized. So it's been consolidating for many years, and it will continue to consolidate for many years because the economies of scale, but also the ability to have a global offering for many customers where there is a consistent approach to the way we work, global control towers, et cetera. It's really important for our customers.

Of course, the 3 business areas, as you all know, but I also think that it is important, the vertical expertise that we have so that we can serve the customer that have special requirements in the way that they expect. Then the market, we often talk about the market, and it's very volatile. There's a lot of things going on. But if you look at it in a longer time line, you can actually see that the market, it evolves in a certain direction over time. So it's grown approximately 3% per year since the year 2000. We can then say how steep is the curve and has the slope, what can I say, flattened a little bit in the end of the curve, maybe it has. But I still think that there are a lot of companies that benefit a great deal and also society, in general, by this very complex supply chain where customers in these days of geopolitical uncertainty have business continuity planning. So they will have production in multiple countries. They will want to basically make sure that we have the capacity to be easy to do business with in all those areas. I think they want us to drive -- basically the way we interact with them through technology, we will talk about customers today.

For example, this has been very much in focus for quite a while now and what we can do on this. And I think basically, if you look at some of the shifts that we see in how business is conducted, I think it's very clear that being a very large player in a market like this, we can adapt and we can serve the customers basically in a way where we keep their supply chains flowing.

The last sort of example of this has been in the Middle East, where we, unfortunately, have seen a significant crisis, but we still managed to keep all the businesses running there as well. And I think we are now back to stable operations, not only there, but also for all the impacts that has happened globally. So I think all in all, we're going to see this journey, where our industry it keeps on growing, and there's a lot that speaks to it.

So if we then look at our own way of running the company. We've updated basically this slide a little bit. But one of the things that we have kept is the foundation. So it's basically unchanged, keeping the supply chains flowing of our customers. Basically, this business enablement is really crucial for our company. I think basically also when it comes to our vision, sustainable growth, we've had a vision that we should grow all the time and sustainability has been with the company for many, many years as well.

So we have to grow, but we have to do it in a way that works for all the stakeholders. And then, of course, basically, operational excellence has always been at the core, as I just explained. And then basically, the values. We've actually updated our values, but they connect very closely to where we came from. So we want to deliver the results. Transparency means the world to us. And of course, the ownership that people they can count on us, our customers, we have very important customers that have very high stock valuations. They need to count on us and trust us. And then when you work and you're here in the long run, we have to win together. We cannot win over our customers or our suppliers because it's not sustainable in the long run. We have to find solutions that work for everybody.

Then if we look at the strategic priorities, I think the customer is always in focus. Vishal will come up on stage and talk a little bit about that, basically some of the priorities that we have there. Then, of course, always how do we handle the volume operations, really important that we talk about that as well, and there's going to be a lot of presentation on that, how we drive the productivity going forward.

And of course, technology. We're going to talk a little bit about technology and Jesper Riis, our CIO, will definitely say something more about that. And then, of course, leadership. To make all those changes and then run a company like DSV, you need a lot of change capacity. So we've spent significant resources on leadership for many years. And I think given the agenda that we have, we're going to continue to evolve and also invest in leadership in the future because all the technology is enablers, but it's really our people, our teams. So can you lead yourself? Can you lead your team? Can you lead your country, your cluster, your region or your division, whatever it is that you have. This is really important for us.

And then, of course, M&A. It's always been an important part of our history, and we're going to continue to do that. We think it makes a ton of sense. We will look at some EPS slides a little bit later so that we can have a good look at that.

And then, of course, our tag line is now called leverage to lead. These taglines mean the world, both internally and externally for us. We've just had Schenker, and we're going to finish now that tagline, winning as one. So combining the company, I actually think we succeeded very well in winning as one together with the Schenker team.

So these are our strategic priorities. Then how we're going to deliver it. So to the right side, we're going to have the verticals and continue to focus on that. And then basically operations delivering as one, then you can say why that's not complicated.

But many of our large customers, even if they work with us in many, many countries, have to feel that when they work with DSV, it's like working with one company because we have significant cross-divisional sort of delivery of services to the customers. So this is really important that they feel it's very easy to do business with us.

Then basically, products and services that we have a consistent offering. This is very important for the customer, but also that it's easy to then hook up to DSV either via API or EDI or any way or form you want to work with us. And then, of course, that we have the coverage that we need either in our own company or through agents. But I would say that we almost cover 100% of our volume in our own structure. Very few places we have JVs where it's necessary. But apart from that, we are in control of the way we produce globally.

And then, of course, the people I already talked about. Leadership, this is our core asset. This is basically the people that, on an operational level, do the job every day or in many other functions do an exceptionally good job taking care that we move the company forward. And of course, looking after basically our stakeholders and also our sustainability. We are a Nordic company. It's normal in this part of the world that we try to have a balanced approach to these topics as well, and they've been with us for a long time. So also this is very important.

Yesterday, we had a picture taken of the management team, and I'm very proud just to give you, what can I say, a few words to every one of them. Basically, in the management team, we have more than 200 years of experience. I think it's important that we know our business and that we bring a lot of operational experience to the table when we discuss things. So Vishal has been basically more than 25 years in the industry and has been with Schenker for a long time and actually also worked for a company in Denmark that moves freight that lives in the middle of the Copenhagen as well. So Vishal has also used to the cold weather in Denmark, even if he was born in India. He's been here before.

Then we have Frank running the Air & Sea division. So more than 35 years in the industry and 13 of them with DSV. Many Air & Sea people actually started in Road and so did Frank as well as a Road forward knowing the business all the way from the local collections and then to all the intercontinental business today.

Then we have Saskia Blochberger, our CPO, that will come on stage a little bit later. Basically more than 10 years with Schenker and consultancy background before that. So running leadership and many other P&O topics, very important also in the integration.

Then we have Michael. Michael started as an auditor, state authorized public accountant it's called in Denmark with Ernst & Young and was there for many years but has since joined DSV and been here for more than 20 years. And Michael has basically been running finance for all those years, even if I had the title, he was Vice CFO for many years and knows the company inside out, and it's also the man that guarantees transparency in our reporting. So he empowers all of us.

Then, of course, we have Jesper, our CIO. Jesper actually is very well educated. He's got a PhD. But on top of that, he has worked for various international companies before he joined DSV as our CIO. Jesper basically is the enabler for many of the technology changes that we are making. And I think we have a very solid platform, and that's not least due to Jesper and his team.

Then we have Helmut, more than 40 years of industry experience. Actually, Helmut has grown up at Bragen. So it's like a border area next to Germany, he's Austrian. So knows the Road business really well, but also knows cross-border traffics and many of these complexities right from the start of his career. So Helmut runs the Road division. It's predominantly a European volume, but there's also a lot of activities taking place in other regions as well.

And then we have Brian. Brian has also tried a bit in DSV, now our COO, more than -- actually, it's not more than 40 years because I think it's 40 years this summer. So that's -- we've overstated it with a plus, you have 40 years of experience by the way I see it. And you've had many different roles, now the COO of the company and basically helps to ensure that many of the sort of strategic topics that we have, we move them in the right direction. So also a significant experience when it comes to that.

And then Maciej. So Maciej has been with DSV for, I think it was 13 years as far as I can recall it. And before that, worked at a company in Poland called Raben as well, now heading up the Contract Logistics division and has a significant experience within that sector. And I would say that also if you look at sort of the combined entity, I think really move the needle when it comes to driving our contract logistics capacities forward.

So this is the management team. They are all going to present to you today, and I know they've prepared really well. And of course, they are also a little bit curious to meet all the investors and see how is that dialogue going to pan out. But I'm quite confident that they will do really well because without this team and their teams, DSV would not be able to do what we are doing. So looking forward to that.

Now another topic. Many people have said that M&A doesn't really work. I hear this from time to time when I meet investors. Actually, we could have taken this slide and gone, let's say, 30 years back. It will still produce a compounded annual growth rate of 16% plus. So now we just took the last 10 years. But in reality, we have managed to basically achieve economies of scale and capitalize on consolidating our business. So now you can see the compounded annual growth rate of our EPS. And we're in it for the long run. We've always been. And I'm quite sure that with the way we run the business and the way we execute the business, it's been very consistent for many years. And I think the planning that we're doing now, it's basically using the same model, the same formula. So I feel confident that we're going to continue this journey.

If you go back 15 years or something like this, we were not even on this slide ourselves. So it's still a fragmented industry. As I said, we have 6% market share. This is the top players in the industry, having 40% market share. So still a long way to go before it's consolidated. I think also now with technology being more prominent, we need to continue to consolidate so that we can take advantage of these technologies. And I think for DSV, it's a capability that we have. And I think it's also then an obligation to use it and take part in the consolidation. But I think most of you know this anyway.

If we take Schenker, I'll quickly just go through that. So I think we closed the deal on the 1st of May last year. So we are celebrating just 1-year anniversary of the largest transaction ever happened in our industry. Also larger than anything else that we ever did before. So the first thing we want to do is to answer the very important question for our people. What does this transaction mean for me? So we've set the team on the 1st of May and basically cascaded a little bit further down until the end of May so that we had announced top 550 within a month, 250 on day 1 and then cascade it a little bit further down.

This actually meant that we had a very stable situation with the employees, allowing us to answer the same question for the customers. Because the customers, they also have this question, who's my contact person going to be, what's happening, et cetera. But you can't really go and see the customers unless you have set the team. So we could also answer that question , "What does it mean for me? For the customers?" So I think that's been very well perceived by the customers. They are -- at least the positive feedback we received on it has been really good.

The next thing we want to do is we want to go live on the country go live. First 2 countries that we integrated. So we merged the 2 entities together or put the entities together in a country. It's like Denmark and the U.S., it's always the first two countries will go live in very flexible labor markets, so easy. And then basically picking up the pace. And I think we are now sort of have done 45% of the synergies. We have now realized in the run rate, so at the end of Q1, and it's going really well on that. Then, of course, we need to have the customer integrations as well, which we are working on, and we've done really many customer integrations, but this is really where we onboard these customers to the DSV platform that we're also going to talk about a little bit more.

And then I think that what we do is then that we try to finish the Schenker integration, delivering the DKK 9 billion in synergies, and I think we're going to have the job done by the end of this year. So we've just recently gone live in France. And there's still a few significant countries outstanding, could, for example, be India or Poland and countries like this. But many of the large countries, they are now basically merged, and we are in the process of combining the 2 entities and rightsizing the operations. So I think we are all good on the Schenker sort of transaction.

So we've upgraded our commercial approach a couple of years ago. I think what we did was we got a very clear customer segmentation in place, not least thanks to Michael and his team that did an excellent job on that. And that is basically the anchor for our commercial approach because it drives basically the segmentation of the customers, the way we run the verticals, the way we service the customers with what do we do for a very large customer and how do we service a somewhat smaller customer, but also how we then run our account plans and basically the target setting for those customers, but also the vertical competence that we need for those customers.

I think this is some of the core elements on the commercial side. Vishal will talk a little bit more about this a little bit later. And I'm quite sure that you'll have some good questions for him as well. But I think what is important is that we try to enable the business of our customers. It's really important that we have this operational efficiency and that we try to enable them.

So this is basically our commercial approach. We're going to keep on driving sales both locally and also basically how we develop the accounts when it comes to the larger ones. I think the important thing here is that we've actually managed to expand the collaboration with some of the very large Schenker accounts that we acquired. And this was a clear target for us when we acquired the company because historically, we had not been too successful at that. But I think we can tick that box and say with the efforts that we put in that actually we did achieve it this time.

So I think if we look, what can I say, on our network business, this is in reality what we have. We have a road network, we have an air freight network and ocean freight network. But also basically a presence in contract logistics that can be also seen as a network business because we have to serve our customers across these networks and deliver consistent services. So Frank is going to talk about how we would like to evolve when it comes to the Air & Sea network. And so what are we going to do on airfreight, how we're structuring that? What are we going to do on ocean freight and how we're planning to basically refine this going forward. These are the assets of sort of the operations. And Helmut is going to talk about Road. Now that we've combined the 2 operations of DSV and Schenker, there's still another step to go on the network, and we're trying to have a very solid approach for that.

And then also contract logistics. I think historically, contract logistics was perhaps more seen as a side-by-side operation for certain type of customers. But given the size and the scale of our customers, they don't see it like this. They see standard service catalogs being introduced across geographies and basically regions or an enterprise level, and they want the one point of contact as well.

So it's also, for many customers, gravitating towards more a network business for them. So Maciej will talk more about that. But it's also in technology, for example, that vertical, it's really moving forward at an unprecedented pace. So if we don't have that approach, we can't really follow our customers. And then at the end of the day, they can't deliver the AI you need.

Now we come to a little bit more complicated slide. Jesper is going to talk more about it. But this architecture that you see up here, it's our enterprise architecture. This was actually a drawing. It looked a little bit different that we made in 2005 and where we've then, over time, taken all the volume and put on to the platform.

On the DSV 2.0, the integration engine in the middle of the light blue that we call enterprise data platform, today, was an enterprise service bus. Today, it's basically connected via APIs or streaming. And then we have databases in the middle for all these data. So we will get ADIs or APIs, data in from the customers. We will then have the chance not only to pass it through to our production system, but actually to have a look at the data, so we create the transparency. And we will also then have the chance to do something to the data before it moves on to the production system. This means that we can also drive productivity because when we get, let's say, data and the quality of the data that we get from the customers is low. Very often, it's low. We also, from time to time, get good data. But if I look at the average of it, it's low.

So let's say, we get a booking in, booking will typically have a completeness between 50% and 60% when you get electronic data. Then it requires a lot of intervention before you can actually open the file as we call it or create the bill of lading so that you can move freight. These tasks are very repetitive and they require millions of hours, for example, the booking area.

If we look at all the domains, it's the same to the outcomes that we're looking for. They are finite because they can go into a database. Now Jesper will talk a little bit more about it, but we believe that the enterprise data platform where we can then use technology such as AI also to enhance the quality of our bookings, not least through inference, for example, it will allow us to drive the company forward in a way that is more efficient than ever before.

We believe that the platform you just saw, we've never seen that thinking in companies we've acquired. We don't know what the other companies they have, but we know how difficult it is to get to. So we've had this for many years. This is the reason why we can do the M&A, the consolidated tested landscape. We also then have an enterprise view on it so that we set the direction and priorities from the top. And then we have the execution power as well. So we have the will to do so. This is very important, not least when it comes to the leadership.

Then what we want to do with AI and tech, if you look at the right side of the slide, the design, the solving of the problem is very much done on group level, as you can also see with the platform. And then, of course, we want to empower the people that sit and do the daily work. Then we want to solve for the same problem that you might have, let's say, on a booking where you get a lot of bookings in that have low quality. You want to take that work away from the forwarder and handle it in the platform as you just saw before, before it goes into the production system.

So this is, in reality, what we're trying to do or what we are doing. So this is then where we transform a job that used to be low in the hierarchy, you lift that up and then you solve that with technology so that the people they don't have to do this. So many of our jobs, they are then sort of more -- will be more monitoring and perhaps not as much keying in as we've done before. So this is then when we transform some of these things and sort of make a more global solution to some of the problems. So we will redesign the workflows so that we transform them, as I said. We will -- our platform here, it really scales. It's very modern architecture, so it can handle basically all the volume that we put on it.

I think basically, the visibility we will get commercially, let's say, on a quote domain where we have access to all the quotes we give globally, instead of use it as a local forward in a horizontal workflow and know what you know, of course, we will know much more what goes on in the market.

And then I think the whole team, not only the GEC, but we've mobilized also on leadership quite a bit. So the whole company is very engaged and ready, what can I say, to embrace the new technology and basically get going on that. And this is something that I think we underestimate a lot, the leadership part. People think I just get an agent and everything is going to work. It's so important leadership. So I have the great pleasure then to invite Saskia up, who's working next to me all the time when it comes to leadership and training with the -- or educating the organization and basically working on leadership.

So welcome Saskia. Thank you very much.

Thank you, Jens. So first of all, a very warm welcome also from my end. I'm really excited to be here today and it's a really important day for us.

What I would like to do over the course of the next 10 minutes or so, is to take you back. Jens said so already. It's the people that are our foundation. So we will be talking a lot also today about the advancements in technology, about the changes in our operating model and all of that. At the same time, we have always been, and we will always be a people business. That's how we developed our company.

We've looked into the legacy we bring. We looked into the core parameters that made our success. And this is also what we truly believe will really make the difference when it comes to executing on our strategy ahead. And same as with operations, same as with our project to technology, we don't want to leave it by any chance. So that's why also the metrics you see up here, they really are leading indicators when it comes to our ability to execute. So something we really take very seriously and really drive also systematic action around. So it's all about lastly, making sure and that has been also an area that we very diligently looked into over the past months is having the right people in the right positions, keeping them healthy, keeping them engaged and keeping them stay with us.

So if you look into as we stand today, we are truly global of the workforce. We have a strong representation across all of our regions, with in total 150,000 employees. We employ more than 180 nationalities and also have an increasingly balanced gender ratio. And these 2 things are really important to us. Also when we look into placements, because we really believe that will make the difference also towards our customers. So to be as close to have the proximity to really understand also the diverse requirements of the market. We really want to make sure to also diversify our workforce to also ensure we have a viability lastly in our talent pipeline and the strong succession lined up.

One key area of focus, in particular over the last year because we're just being in the middle of an integration has really been employee satisfaction. And I will come to that in a minute, how we've really been driving intense efforts around that.

And lastly, something we take very much pride in. If you look into the parameters of turnover of employee engagement, these 2 things really, we managed to remain them stable and really better than benchmark. And that is something ultimately, we do not take for granted in particular in times of big change and integration. So that is really something where we see efforts and the investors we made paying out.

Talking about the integration, and I need to tell you that, of course, also from a people perspective has been our biggest priority now over the course of last year, and it still is. So the biggest focus we put was lastly bringing our workforce together around the joint direction and lastly, creating that one shared reality that one way of working very quickly and it was less about structure only. So the things we really -- the 3 principles, we focused on very much diligently were really that we acted at speed that we made sure that we've been transparent without any compromises and really creating that shared reality, the clear reality right from the beginning.

How we've been doing that? First of all, it's all about -- it has been all about communication. So compared to how we've been experiencing things, maybe some 2 years back, we really made sure that this time we had a very frequent there very direct. We had across all layers of the organization from white collar to frontline everywhere really regular line of exchange. We had regular piles checks, feedback loops operations so that we could really have a dialogue with the organization and act fast around the learnings and where to mitigate quite quickly.

We then secondly looked into equipping our leaders to that change. Because in particular, now if you look into the leadership appointments, it's a solid mix of legacy Schenker employees, of legacy Schenker managers and DSV managers. So really making sure that we equip the newly appointed managers with tools, practical guides, trainings to really onward their teams at pace to make sure that our employees, no matter where they come from, really have that same consistent of an experience from day 1 until day 100. So more of that playbook approach also here to make sure that we do not run any risk or inconsistencies here.

So overall, we've trained in the first couple of months, more than 10,000 of our managers and really following the same approach to employee onboarding and team development over the first half year.

One of the things we also focused on a lot, and that might seem like a hiking factor, but we really noticed that, that is the big thing that makes the difference. So really making sure that we streamline the proceeds that we accelerate the access to infrastructure because it makes a big, big difference also in terms of experience that people act or work in a common reality fast so that they have the access to the same processes, approvals, systems, Internet and all of that. So we really made sure this also happens very rapidly to create also that cohesion in working environment very much quickly. All of this think was very important for us, in particular in times of complexity to provide as much clarity as possible, and it really paid out.

So in addition to having that obviously, energy and momentum and having the organization move very much at speed from integration to execution, we also received a very positive feedback in the integration pulse survey that we launched end of last year. There we really see a high confidence of our employees in what lies ahead and the entire rationale actually of the acquisition, which was a good endorsement and a good reflection also for us to see that we've really managed to land these messages well and create that confidence in our organization.

And Jens talked a little bit already into how we look at leadership because for us, it's nothing that we do on the side. It's really a big part of bringing our strategy lastly now to execution moving forward. And we strongly feel that with the emerging technologies with really the rapid changes in our industry, we have what it takes to be successful. So we have it in our DNA. We've always been grown to change. We've always had environments that were highly complex and with things to figure out. So we have that ownership that drive results transparency. So it's a matter of reinforcing that DNA. At the same time, we do see the necessity to develop different behaviors. So ownership some 50 years back completely -- had a completely different behavior of form. So we've starting to work very much consistently with our leadership now on developing the behaviors that it will take to move towards the future and really make sure that we are prepared for that.

We do that from 3 different angles. So first of all, it's all about really building that right mindset, where we are really mobilizing our leaders a lot around development curiosity, developing that skill to really listen to signals from the market. We're talking a lot about first principle thinking, AI first mindset. So something we really heavily train on. And then secondly, it's all about the capabilities, abilities to also reduce complexity. So to making sure that we keep that -- taking decisions at pace, making sure that we are able to think in simple terms that we cut that complexity to really keep the organization moving. And last but not least, it's also about -- less about individual skill development, but what the end that is business transformation.

So we want to design an organization that is lean, that doesn't have any double approval layers that ultimately is set up for success and set up for the organization to act in a simple and empowered way. So really having the organizational design lining up to our ambition is also a big, big area of focus for us, has been and will be towards the future.

How we are doing that? So there is a concrete road map in place to really make sure that we address it from all these 3 angles. These leadership shifts. And one of the big things we've been doing, we've been investing very heavily now in mobilizing our top leaders just 7 weeks after closing, and it was exactly here, we bought all of our top 250 newly appointed leaders to just make sure that within the first weeks of their role, they basically were onboarded on the priorities, on the dos and don'ts of the integration that we set clear targets and expectations. We've been doing the same now in January, where we also reconvened back the top 350 leaders to align them, to rally them on what DSV 3.0 will require and really have an open and transparent exchange around that and we'll be doing the same again in October to really also make sure that we are prepared for what the road map ahead requires from them to drive that also in their areas of responsibility.

Acting at speed. I think we've spoken already into that. One of the key things that we've been focusing on and will continue to focus is that we really appoint fast. So in this integration, also just within weeks after closing, we had the top 500-plus leaders appointed and following also here the best [ athlete ] principle to really making sure that we have the assessments done that we have a confidence level of the managers are fit for the future and that nicely translated then also into that clarity of accountability. So we had the first layer appointed. They appointed their next layer with the same principles, and we really had that strong sense of accountability of mandate to then also execute on the synergies at pace.

So that is a big, big area of focus and will continue to be also towards the future. How we want to leverage that into the wider organization, it's very much around making sure that we speak one language. So Jens spoken to, we already -- we relaunched or revamped our values and the corresponding behaviors that come along with it. We did that in an interactive in an inclusive report where we had colleagues from 55 countries basically joining in and developing that shared future together. And we will also be embedding our leadership principles, the values in everything we do. So basically in performance management, in diagnostics in our incentive structures to make sure that we have one consistent way of describing and acting how good looks like ultimately.

So in short, we are very confident that we have a strong or a strong organization that is highly engaged, that is highly committed and that we have also the right leaders in the right positions to take us towards the future. And we are very confident that plus our leadership is nothing we do on the side. It's something that is really actively enabling our strategy towards the future.

I think with that, I give it back to you.

Thank you very much, Saskia for running us through the leadership. It's -- as Saskia also says, it's something that we believe a lot in. We have done that for many years. And we're going to continue to basically have that as a very high priority on our agenda.

Now a little bit back to some of the things we're going to talk about a little bit later in this presentation. So we've basically said that we expect, what can I say, some conversion ratios that we've sent out to the market this morning. Some of you had asked if we had a Board meeting yesterday. And we certainly have, and we've done a lot of work on this plan, where you can see the outcome basically of the plan here.

It's done on the same framework that we use when we do M&A. So basically, we have a baseline for the things that we are looking at, and then we have an aspiration where we want to go, then we would have a delta. So this is then the plan, what is it we need to do. And then we've broken it down in the many different areas so that we have a clear strategic plan that we're going to work and execute on until the 2030.

I think if we look at the bottom first, the network optimization. Some of you might call that, let's say, a second round of synergies on top of the DB Schenker transaction that many of you have talked about because many of the things that go in there could also be labeled like this.

So what would that be? Well, that would be that we -- when you integrate 2 companies, you create sort of the network that makes sense at that time. And then once the dust settles, you refine the network, and you can, what can I say, take another step. And then, of course, you can drive the productivity up. That could be one way of looking at it.

Then, of course, the top box is a little bit more significant. And I think the divisions they want to talk about this as well. But much of the foundation is then the production system that you have and how you sort of want to produce.

Another part of it is then the enterprise data platform that I just talked about and what productivities can we drive by leveraging on this. So these would then lead to a situation where we also on the AI and technology take advantage. And for me, it's very important that AI, it cannot stand alone. It's basically when you have a business area, you will have an aspiration, you will have a certain service catalog so you need to produce certain things, and then you have an operating model. And this operating model, you need then to see how do I operate this business in the most efficient way and kind of like first principle thinking where you say when you have the aspiration, how do you want to do it, you think a little bit outside the box. And then design for the best solutions can be AI, sometimes can be a micro services, can be various ways that we make sure that as much efficiency as possible when we work with data. So I also think Jesper will touch more upon that.

Another thing that we then also need to do and Jesper will come back to that as well, but we need to also then clean up our infrastructure a little bit so that when you have 2 companies that are merged together, then you will have many solutions that solve for the same problem. So also this number will actually drive significant savings. We've done it many times before. So over the years, we've really spent significant resources in that. And that's all changed management because you have to go from one platform to another. And in the more of this change, we can drive the higher efficiency we get, the higher productivity we get. And this is the reason why coming back again to that it's not only the technology because in many cases, we have platforms, but we need to move the people onto the new platform, move to customers and drive that change.

Yes. So this is the plan that leads to conversion ratios that Michael, he will also talk a little bit about later, but you've probably all seen them. So I think the key takeaways is that I think we are keeping the plan on the Schenker integration. We're very proud of how it's basically progressing. I think we will still keep the competence as being an M&A powerhouse. I think that will stay. And I'm quite certain that this will mean that we will be one of the leading players for many years to come. I think the IT platform is unique. I call it [indiscernible] platform, because it's really, really simple, but it just takes a long time to get to. And then when we work towards that platform, there's a lot of, what can I say, hard work needs to be put in.

So how much resistance can you take and how much will do you have? This is in reality what decides the pace that we will be moving forward at. And then I think the team, it's a people's business. You now meet the team, you've met Saskia, and you'll meet the rest of the team. And I think that we have an excellent team that is well equipped to execute on the strategy. And at least tonight, my sleep score was 93. So I've got a little bit too little sleep, but apart from that, I can see well because I have got a lot of good colleagues and team members in the gig that makes sure that when we meet all you guys, we have the confidence that we need and that we can stay calm and focused on the task at hand. Then somebody said, it's really ambitious what you have at hand. And there's nothing new. All the aspirations we had ever since I've been part of the company has always been ambitious. We've always, over time, met the targets. And I think with all our colleagues, the whole team, I'm confident that we will do it once again.

Thank you very much. And now I think, Jesper Riis.

Great to see you all. So pleased to be able to present this for you. The agenda. We will dive into the IT platform. We will talk about consolidation and how we do it. We will talk about -- and now let's get technical on the IT enterprise data platform. So I hope that's okay. We talk about AI and what goes on there. And of course, in general, innovation is the last bonus.

This is some relatively big numbers. If you look at it, it's actually massive numbers, as I see it. This is some of the data that has moved, volumes that has moved on our platform. It's important when we talk about the platform, it is over the years built for scale. It's built for growth. And that is the main focus as well. Profitability is, of course, on top as well and transparency.

This is not only about tech. Of course, the technical part in it is crucial, but at the same time, we need to think about leadership, as already mentioned, governance change management, and to continue and also consolidation because consolidation is a core element of having a scalable platform.

Every time, as we mentioned before, but every time we buy or they do an M&A, we do a full consolidation. And it means if you look at the graph here, it means if you don't do it, your complexity will increase dramatically over time. It's more or less exponential. And you will lose your ability to scale, you will lose your ability to be efficient. And that's why we always do this consolidation because that keeps the complexity, the scalability where it should be and also the probability. So this is so crucial for us.

It actually goes long back in the culture of this company. So it's nothing new. I visited the first time when I joined the company 11 years ago, I was in an interview with Jens, and he said to me, Jesper, can you count to one? And I was like, I have a PhD degree, you heard that earlier, right? Of course, I can count to one, and I can also count to many, many more. And that's what the whole idea should only come to one. So this was -- this has been a part of the culture for many, many years.

On the other side here, you can see over 6,000 applications has been closed since '16, so it's a massive change management need to do to get all the users out and the right systems in. If you look at data centers, more than 50 data center has been closed over the years. We also received some from Schenker that we are handling as we speak. So this is a part of it. And then it's important when we talk about -- now I mentioned applications and data centers here. But in general, when we do consolidation, it's all the way from processes into your application layer, into your data, also needs consolidation and supply data platform as a part of that. And then you need to have your base infrastructure, data centers is also listed there, basically consolidated.

So it goes the whole way. Right now, we have just around 2,000 business applications running. Of course, we have received majority lately on the integration. But we have already planned for 1,200 that is set for closure and decommissioning, and this is what we're working on. And I believe we'll get even higher, but this is our target for now. So in general, the importance of consolidation, I cannot emphasize that enough.

This is a high-level view of our IT platform. There is different layer, as you can see here. Basically, prior Schenker, we had one integration platform at the bottom, one CM system, one financial system, and I can continue on master data system. On Air & Sea, one system globally. Contract Logistics, we managed to consolidate 60% of the order lines in one system before. Unfortunately, now we have received more in a good way. And also when you talk about public APIs, EDI setups, again, one system coverage. So it's so important and integrated part of what we do. Of course, with the Schenker now part of DSV, we have -- there's only one DSV now. There's nothing else.

Then high level, we need to come to a position where we need to continue the consolidation. And I have a slide -- next slide where I show what will happen, what will be the system target landscape for that part.

But before I do that, then the enterprise data platform is super important is because that's where we consolidate our operational data and other data in this very unique structure, which I will show you later. And then, of course, our AI factory, it's basically a factory producing AI solutions. And we created that and started that way before there was something called ChatGPT and all the other things. So as Jens mentioned, we are really visionary barrier when we see these technologies and figure out can they be used but I'll come back to that under the innovation part as well.

This is an overview of the consolidation for the divisions and also for our finance area. If you look at the top one, Air & Sea and the second one, Road, then we have done an analysis of very through the investigation on what would be the right tool for us going forward. And the result has been very clear. We will, for Air &Sea, aim for Tango, and we will transition out of CargoWise one over time. And the same for Road will consolidate on [ Star ]. Both Tango and [ Star ] is legacy Schenker system coming in with the acquisition. It's really a strong system, best-in-class, if you ask me on the TMS part. They are owned by legacy Schenker thereby DSV. So we have full control over the application entrant. So this is a big strength for us. Tango is before, the integration, Tango was used broadly across Schenker for Air & Sea, and [ Star ] was also rolled out quite a lot in Schenker. So it's well-proven systems.

Then you can think, of course, in this transition, that is, of course, some change management needs to be done. That's clear. But it also means that we have some -- we are moving a little bit more out of off-the-shelf solutions and into more own core systems, as we said. And it definitely has some advantages. One of them is, for example, that now you control it all, not very often, you can have issues on the license part. We can drive the cost down. We -- also in a situation we're not depending on the same level on vendors. It's also a big plus.

And last but not least, we are market leaders. When we need features created, we can do it ourselves and we can roll them out. Not depending on somebody else's growth map. So there is a lot of benefits in this, and it is really, really strong systems. Then on concepts, we, of course, need to consult as well. We will use another owned systems called [indiscernible]. And then we will have an off-the-shelf solution for the more complex customer later on. We are investigating which one to go for.

And last but not least, on the finance part, we have one financial setup in DSV, and we will stay that way. That means we will close the many instances we have received from legacy Schenker. So this is just about getting that consolidation going.

Then let's dive into the data platform and apologize as -- now I'll go a little bit into technique, but you need to understand this way of thinking, if you want to understand how we work with this unique data platform. So on the left side, in to touch upon it, the entire service costs or integrated platform earlier actually, and it's still news, of course. But earlier, it was very much supporting all our data exchange around the company.

Now we have converted into the enterprise data platform. And as mentioned before, enterprise data platform is where you consolidate your core operational data and other data and to do it in a little simple way. You can see it says connectivity, APIs, EDIs and you name it. This is where we get data in from customers, partners, authorities, you name it. Then these data are stored in one place, we put quotes data in.

Another place we put our booking data, a third place, our event data. Then we have created an enterprise data model that covers all these different areas where we store the data in. And then basically, the booking will be what we call a domain. We use that term many times and the same for events and the same for the coke part, et cetera. So you get extremely high degree of structure and it's enterprise. It means that it's the same data model behind no matter if you describe it for Air & Sea, Road, et cetera. So it's the same data model. And this is -- if some right it tries to agree upon our data model across the whole company acquires a lot of efforts. And of course, there's been a big investment for us to do it. But now we're there, and I think this is a huge, huge unique situation in.

Then we have all this data. Now we can create the transparency as Jens has been talking a lot about, data science, BI, et cetera. Then we get the transparency. At the same time, when you have the domains we can put, and we have done it up in the right corner, you can see AI microservice, then we create these tools, and we have created some and we can create many more trade what we need. But basically, you put in the AI solutions or the microservice you need to enrich the data before you send it to the back end to the TMS systems and others. And what that brings is, of course, it's a high degree of productivity because now you come in with a high-quality level of data before you hand the back end. It is in risk before it gets there.

At the same time, when you take the data back from the different systems into, let's say, the events where is my goods, et cetera, now you can consolidate it, so you have one message to the customers across the whole company. And that brings this customer unified experience. So this is some of the drivers, transparency and then productivity, unified customer experience and definitely also the last one is when we have data like the quote and booking and other things, then we can basically scale on it because we have it all in the structural form, so we can scale easy. And when we do M&As, we can hook it up one time assistant to this and then you have the full ecosystem available to you, and you can route it right places.

So this is quite unit has been a lot of change management, a lot of discussions, but I think we are in a very, very good position. I hope that explained a little bit about the data platform, now I've been mentioned many times, but this is really a driver for transparency, productivity and scalability. And of course, AI is a big enabler for the AI activities. So this is a small example here from -- on the left side. We received the bookings. Some of the bookings, I have to say, not always in high quality when we receive it. We can also receive from e-mail. Now we have an AI solutions that can convert it, automatically understand it and make it sure it gets into the booking domain in the right way, in the right format. Then in the booking domain, we have put build average value data as an example. We can correct volumes, numbers put in the right service code and other things. So enrich the data and then it's pushed to the back end. And over time, the perfect booking will arrive.

Okay. I think it's an important question right out there. And my answer will be that DSV is in a very, very strong position to scale on AI, and it's definitely to harvest the benefits. We have been working with it for many years. We have the right people. We have the right technology, and we have the right leadership and the capability of enhanced management, which is so important. It's not necessarily just tech.

But here, this is some of the reasons. First of all, our end-to-end network. So you need -- for your use of AI, you need data, you need to be able to train your models and you need it in big volumes. We got the network. We've got data from the network, and we got in big volumes, of course, also because of our size. So this put us in a really good position. Our consolidated IT landscape is crucial because when you want to roll out AI solutions. Imagine that you have 200, 300 systems you need to integrate to get the data in the right place. If you only have a few, then your ability to do the change and roll it out is much, much stronger. I mentioned the enterprise data platform, core element as well. And then our enterprise approach to implementing AI solutions as well, and I'll come back to a little bit more of that.

Another thing is that you need to be able to create AI solutions fast. You need to fail fast that also need to be able to maintain and roll them out in a fast speed. So as I said, long before ChatGPT, we created this setup, where we have an enterprise operating model on the AI part, the technology, the processes, et cetera. Then we have also ensured that we make components we can reuse. It sounds simple, but it's not. But if you design the AI, so you actually get modules, you can reuse, it can be UI, it could be the model itself, then you can speed up dramatically. Later on to today, Brian Ejsing will go through our customs AI solution high level. And we also have Michael Ebbe presenting an AI on vendor invoice. And basically, they consist of many of the same components, even though there's all different problems.

And then last but not least, we have created a set of where we have a vendor agnostic. We don't want to be locked in that we need to use a certain vendor. So we operate with an open source model. And we operate with a big tech clients, but we can choose what fits for what purpose. And AI is not like one AI just fits all. There are different models, different ways of training them, et cetera. So we have built a pretty strong setup on that.

Then AI price value across a broad range of areas. Here are listed some of them. Coming back to one of the slides in showed where we said enterprise, top level, this is where we start. We don't want to solve the problem down in 100 feet or 10 feet or in different regions or in countries we want to get it up to as high as we can get it. And that's what we call the large global processes, this is the one we would like to support. This is where most of the value lies. There are also other places where this is a real, real driver. So we have defined quote tools, booking, I show you that, vendor invoice customs, and there will be some presentations on some of it today, also quote, we will go through it with -- Frank will present that in his part. Maybe not go into details or high level what it brings on value and where they are in the process. Some has been implemented, some is on the way to be implemented. So it's -- I look forward to you that I will present this to you.

AI for logistics is definitely also an area AI for productivity in office, definitely also an AI for software development. And this is also an area where we, of course, invest in and have a great experience in. So -- but very often, it looks very fast. This is technical, but it's not. It's taking -- getting the right business cases, make sure you do the change you need in an organization. You need to make sure that it can be a part of the end-to-end process because there's physical move between the steps there's a lot of other activities that just the part you can fix with AI. So it needs to play with the full game in the full tech, and that's also why I would say, AI and tech organization, processes, you need the physical movement and a lot of other things that they need to cover for. And I cannot do it all. That's not how the world works.

Good. My last area, innovation is really close to our hearts. And this is an innovation radar. It developed all the time. Unfortunately, I don't have time to go through all of them because then we'll be sitting here also during the night. But I would like just to take you out and present. And luckily, it's also related to what we had here today. But the way we work with innovation is to make sure that we invest in the right things. We don't want to invest you could buy yourself poor if you want to in technology. But you need to figure out what does that actually drive the value in your company and then invest in that on an enterprise level. But taking out 2.

And the first one is this drone. You can also see up there. And luckily, we also have Peter Matthiesen standing up there and others that can ask your questions. But overall, this is a drone from Phoenix. It's a service we offer today. And we have already a lot of customers on it, among others, offshore wind industry in Germany and in Holland are using it for spare parts. And the same goes for our data center, remote data center in Norway also for spare parts. So I think drones, they will be more and more important going forward in the future and definitely also in the transport industry.

And then last but not least, we have launched the autonomous trucks now in Texas, as Jens also mentioned. This is a picture from it. And soon, Steve will give a small introduction for when and how can you talk to the people. There is a truck outside as it's a European version. This is an American version, but nonetheless, the same principle. And we are really proud that this is really something that could drive some change. I can also make sure that if you need a truck drivers, for example, then this will solve the problem over time in some degree. Of course, there is a lot of regulation still in the world what you're allowed to do, but now this is live. So it is very really exciting, and I hope that you enjoy the view out there if you go out and see it.

So to round it up, an IT platform designed for scale, sign for growth, and we focus a lot on this consolidation and it's also a part of the success for where we are today that we have focused so much on consolidation as well. We're moving a little bit away from some of the off-the-shelf system over time. That's why we will introduce and roll out Tango and Star. And again, we will get some more insight on that on the later presentations. The data platform has been mentioned multiple times, I think that is clear.

And then last but not least, we are in a pretty strong position to utilize AI in a good way, scale it and get the benefits. That was it for me. So thank you very much.

Thank you, Jesper. So now it's time for the first Q&A session. Nice to see a lot of hands coming up already. I don't have a chance to see how we're going to do it. But of course, we have a question here from the room. If you -- only one question, please, because the lot people want to ask questions. And then, of course, also, I can see I've already received the first ones from the other side. So please write questions from there. I think we'll start here, and I have some [indiscernible] run on. Let's start here with Lars Heindorff in the front.

Lars Heindorff from Nordea. Very interesting presentation about the savings. So I wanted to ask a little bit about the path to the DKK 9 billion, the DKK 3 billion, which I assume you said Jens, you mentioned it was sort of maybe a little bit more on Schenker. I don't know whether they come first and then the other DKK 6 billion. Are they more back-end loaded towards 2030? And how much of that will then be outline savings of operating your own in-house systems? And how much will be productivity gains from more consignment employees and so forth. And so the path there, maybe if you can share a little bit about that.

I'll say a little bit about it. Michael is going to also in the financial presentation, talk a little bit more about it. But I think some of these things right now, we are finishing off the Schenker integration, and I think that's where the core of the focus is. Then we do work on some of the topics, the divisions they will talk a little bit about what we are introducing right now.

But then it has the same journey as, let's say, a Schenker integration that you work a lot and then you get the benefit once the things they are implemented. So of course, the numbers they then have to be there in 2030 so that we can deliver on them to you guys. But of course, in sort of first phase, there's a lot of mobilization taking place before you really start to see the benefit of the productivity improvements.

So now I'll fly in a little bit high, perhaps a little bit too high for you, but also I don't steal the thunder of the people that come on stage a little bit later. But -- and Michael will touch a little bit more upon it.

Marco Limite from Barclays. So you're quantifying today at DKK 6 billion, the AI cost benefit. But when we think about AI, do you also see risks? And therefore, is the DKK 6 billion, let's say, a net number, excluding maybe some pricing dilution? Or is that just a cost saving and therefore, maybe we should also think about some negative revenues headwinds to offset the DKK 6 billion?

If we look at the targets, they are the combination of a lot of parameters that go in there so that we hit above 55% in, for example, in conversion ratio on Air & Sea or 35% on the other divisions. And of course, there's a lot of positive elements in there, but there's also some, what can I say, negative elements in that. So I would say there's some assumptions in that. We can always debate if they then are accurate or not, but we've looked at it.

Then I'll take one from the screen here. We got a question here from Citi regarding the time line for transitioning from CargoWise to TANGO. Jesper? Jens? Do you guys want to take that one?

From TANGO?

You could say to TANGO from CargoWise.

Yes. Right now, we have not defined the end date for it yet. But of course, we are rolling out. And I'm sure we would later on come with a more precise time line. Frank will give some indication on some of it, but that's, I think, my answer. Maybe you can say some more, Jens?

When we have two systems that are well connected in the back end. We're not necessarily in a hurry. We can drive the productivity of One TANGO so that we are certain that we can deliver on the productivity aspirations. We will keep both systems running. And Frank will say a little bit about how this is going. Some of you are well informed that we are running, let's say, in Singapore, Canada and some of the other countries as well on TANGO. So I think we have a journey. And we don't need to set a specific date right now. We want to make sure that we don't lose the productivity. So this is what is in our planning.

I see we have one there. Alexia?

Alexia Dogani from JPMorgan. I have one question around kind of what's the plan for 2030. If we look at a very simple bridge of where you started from 2024, we're looking at an EBIT of over DKK 40 billion, all else equal. I guess what can go wrong on the backdrop that we don't see those numbers by 2030?

I think what can go wrong is that we fail on the execution of the plan at the end of the day. I don't see -- the way we run the plan or do the things, it's basically the same way we've done this change over the years. So it is the same methodology that we're using. But we put so much emphasis on leadership here, all the time, because we need not to drop the ball when we're doing this. And of course, there's a lot of complexity. So that's the risk that you have to look into and your risk management has to be very precise and your reporting has to be very transparent because normally, we say there's no problem we can't fix. But the later we discover a problem, the harder it is to fix it.

So again, back to basically how we govern it. I think that's the biggest risk. And it is for every company that introduces transformative technologies that you really have to make sure that you govern this in a good way. We're very used to this because we buy a lot of companies. So it's a muscle that we train over and over again.

But there are really three things in a company that are dangerous. It is the A, B, C. So if we become Arrogant, if they become Bureaucratic and if we become Complacent. So this is the reason why we have the values. So we try to prevent that because you can easily say, are we the market leader or whatever. We shall never do that, at least not when I'm the CEO. What happens afterwards, nobody can tell.

Yes. We have one question here for Saskia. Now you come from with the Schenker background. And the person would like to hear how has been to move into the DSV world coming from Schenker.

For me personally, but I think it's representative also to the journey eventually that one of the other colleagues coming with the legacy Schenker background has had. And the question I received quite a bit yesterday was what are the big differences between the two organizations. And I feel the biggest surprise for me personally was still talking logistics industry.

So it's a lot in the, let's say, DNA that is more common. So we have in both organizations, and that's also something I found a big openness. You had a big focus on collaboration, that ownership, that pragmatism that I think the industry overall brings. At the same time, legacy Schenker has been a state-owned company. So you had a lot of the culture being shaped by simply the environment by having more bulky processes, having more bureaucracy.

So I feel that at least right now, the intent has always been for us, and that's what I meant earlier, really making sure that our new colleagues joining, including myself, got familiar with the new reality fast. So the speedy processes, the approvals, the organizational reality and then that also made the cultural integration way easier in that sense. And that has been also an area of focus for all of us. So really getting people used to the new reality while still focusing on basically some of the cultural elements that unite us.

Yes, we have one at the back down there, Manus.

Arthur Truslove from Citi. So one for Jesper, please. So obviously, when you think about the enterprise data platform and all the technology that you just talked about, how much of this have you sort of proved the concept and kind of got it up and running? And how much of it kind of remains to be seen in terms of proving it and rolling it all out?

Yes. Again, I'm happy to say AI and tech because they always go together. But overall, some of the illustrations I saw here, we have AI solutions with tech as well rolled out for globally in some cases. Michael Ebbe will present the vendor invoice application. We have customs that's also customs [indiscernible] that can handle rolled out a lot. Brian will come back to that. I will not go into detail with that.

So we are in a mature state, but we have enormous potential in front of us. So there are so many processes that we have not started on that have a huge potential. So we're underway. I think we have a good foundation to move forward. We have the right skills, et cetera, but there's a lot to do yet.

Alex Irving from Bernstein. One also for Jesper, please. We think about the AI that you're deploying in the business over the next few years, how much is AI with a deterministic logic versus AI with a probabilistic logic? And where it's probabilistic, where does the accountability sit? If something goes wrong, if there's some hallucination, how do you guard against the risk of that?

Yes. I think I can start with the last one. We always make sure that it's top management that decides the direction and what we do. Then all the [ gate ] members are a part of ensuring in their areas that it's implemented in the right way. So it's not like I sit and dictate everything or Jens does, but it starts in the top management. So -- and then we drive it out. And this is the only way we get this enterprise and make sure we can scale it broadly. Your other question, you -- I'm not 100% sure what you meant, to be honest.

Essentially deterministic being agentic and probabilistic being more like an LLM, more like a generative AI.

Yes. But we use the term AI because it's -- I hear very often everything is in agent AI, agentic AI. And in reality, it's typically a mix of machine learning or generative AI setup taken an end-to-end responsibility of a process, right? So we just use the common term AI, but we cater for all the things you mentioned in our setup.

I'll take one from here. That's to Jens. When will we be able to do the next M&A transaction?

Well, when you look at it, it's not always something that we decide ourselves. It's also when does things come to market at the end of the day.

Of course, then our ability to create value on M&A and then perhaps have a more forceful approach will be enhanced the higher conversion ratio that we have because the more value we can create. At the end of the day, it's resource allocation.

So the more value then for us in driving this agenda, it's significant numbers. And then at a certain point in time, the business cases, they're going to look better. When you make the returns also for the acquired company and put this into your business plan.

So I think if we look at it from a company point of view, we will have completed the Schenker work. Not all the tail work will probably happen, some of it in '27. There's still some cleanup to be done on the application consolidation on some integrations, et cetera. But once we've done that, I think it's -- the company is in reality ready to do so. And if there's an opportunity that makes sense, we will probably have a good look at it.

Jacob Lacks, Wolfe Research. Can you help us think about the opportunity within the DKK 9 billion of savings breaking out by division? And is there one segment where you see a bigger opportunity from AI implementation relative to the others?

I think if you look at the conversion ratio, I think it gives a little bit itself most of it how it's going to be spread out and what we are going to aspire to. So I think you will have what can I say with the growth numbers, you will be able to do your engineering. I already heard that from Alexia that was possible. So I think we will stick to that.

But it's clear, if you take the overall buckets, then I think for every division, AI and tech is significant. And then depending on how much infrastructure you have, of course, there might be a little bit less to achieve in the Air & Sea area because you sit on less infrastructure, somewhat more in Road and then even more in the seal side because you sit on more infrastructure. So if you apply that logic, then I think you will be in a good spot.

Cedar Ekblom from Morgan Stanley. I've got a question probably for Jens. We're talking about consolidating your sort of mission-critical production systems at the same time as integrating the largest deal you've ever done and also talking about massive productivity savings and changing the way you work.

It's a lot on your plate. And so what I want to try and understand is what are you seeing in the business today as it relates to hurdles to migrating from CargoWise to TANGO because I would assume that that's already happening. Help us get comfort around this integration that we're not going to have a 12- to 18-month slippage and what that might mean for your customer interactions and it's a lot that you're talking about.

Yes. Already today, basically what Jesper has created together with the teams, for example, between the two systems is what we call a bridge. So we can exchange the data in the two systems. So at origin, you can take a booking on one platform and a destination, you can handle it at the other one. So these, what can I say, productivity consequences, they are already in our numbers today.

Then, of course, when you do these things, you want to do things at a certain pace so that you get finite outcomes. So that, let's say, for example, the customer integration part. We want to finish the customer integration part so that we take all the same integrations and move them on to our integration platform. Then you are in control of the data, then you can route them wherever you like and the systems they backfill each other.

Then now when we have it on our platform, we can then start to work with technology if we already have it in place, so we can enhance the quality of the data. Then the forwarder, basically, they are isolated from this work because they will then get better data. So you have to basically isolate some of these tasks in the process so that you don't have somebody that has to do the whole thing at the same time.

So basically, this is also then how we organize the company in domains so that you keep the problem within a certain area so that it doesn't spiral out of control. Then when you do these things, when you run a company, you make your plans, then often, it will happen that you have to say, well, I got this assumption a little bit wrong. I have to change my plan a little bit.

The risk management then has to ensure that we don't get it too wrong so that we have to talk to you guys about it. But on the other hand, when you have a plan, this plan says we would like to win the world championship. So at least I've spoken to a lot of sports people. They say they get no medals if they say, I'm going to be the last in the league. So what we're going to say is we're going to stay industry-leading, and we have the aspiration. We don't think about failing. But of course, from time to time, we may slip. We will then get up and continue running as we've always done and just focus on winning. That's the only thing that matters.

Muneeba Kayani, Bank of America. So I wanted to talk about customer retention. When you had first announced the DKK 9 billion synergies, you said that assumed a 5% churn. Where are you on that now? Jens, you talked about expanded collaboration with some of your big customers at Schenker. Where have you had the successes? Where have you lost? Your competitors have talked about some Schenker salespeople, customers having moved to them. What do you say to that?

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Maybe remember, we have Vishal coming on, on the commercial part. So he will definitely go more in deep with that. But Jens still, if you have some comments.

So what Stig is saying, don't steal his thunder. When you do M&A, it's quite common that certain people, they leave the company. I'm also personally very happy about the competition focusing so much on us. I mean we focus on our own plan, which is why I think you create the value.

But having said all that, I think we've been through this tender season on the large accounts with more volume -- been awarded more volume than we already had. On the significant ones, the very large accounts that I think they are referring to.

How much volume these other companies have acquired, I'm not sure, but we are very satisfied with this. Then, of course, you can measure basically our success in multiple ways either in TEUs and tonnes or in GP. So I think after 1 year, we've managed to lift the Sander GP up to the GP level of DSV. And then it's true, let's say, there's been some low-yielding volumes in certain areas that we are not basically producing anymore.

So I would say the customers that we want the segmentation, I think we basically managed to keep relations to all the important customers. If I look specifically at top 250, I would say there's probably one that has left way down the list, but not more than that. And if we look at the smaller countries or customers in the countries, there can have been some down trading because that often happens until you know who's the new contact person and all these things.

Frank will come back to what it means for growth and also for these customers a little bit later, and Michael will talk more to the other stuff. But I think actually that we've delivered, what can I say on the plan that we had, at least from a GP perspective, which is also the way that we budgeted.

I think there was a question from Ulrik over there.

Ulrik Bak, Danske Bank. Yes. Just a question on AI and the Road division. So you have 25-plus TMS systems in the Road division currently. And you said it requires a consolidated IT setup landscape. So what is the time line of rolling out the STAR system? And how do you see the AI benefits during that process?

Yes. But first of all, we are rolling out right now, and we'll do that in the coming years. And overall, the good part is we have -- when you roll out a standard system, you only need to hook up your services one time with. And then you roll it out together with in the countries, right, together with the system.

So I think we're in a good position on the rollout, and it is a very strong system, a very modern system. So my tech colleagues, they love to be a part of that project because it's one of the really exciting ones, right? So I hope that answers the question in some degree or do you need...

But I think we can say a little bit more to it. How many countries do we have on the now?

We have at least 16 or something like that.

And some in the rollout.

And some in the rollout.

So just to give you some color, so it's not like...

Also bigger countries.

Kristian Godiksen from SEB. So thanks for breaking down the DKK 9 billion in DKK 6 billion and DKK 3 billion. Just if we can double-click on the DKK 6 billion from AI, STAR and TANGO. And to my math, it doesn't leave much for AI if we assume the AI is DKK 1 billion from the license savings from CargoWise and then DKK 3 billion from STAR based on the 3 percentage point EBIT margin uplift you have spoken about earlier. So hence, this only leaves DKK 2 billion for AI. Is that -- yes, how do you compute that? Is that based on your worried about the efficiency from AI that how much you can keep?

I think if we sit and look at this, there's probably also a bit of baselining you need to do because of the baseline, how much real value -- how much volume is on tangle right now and how much is on CargoWise. So I think your number -- the cost avoidance or the benefit at the end of the day is going to be that number, but it needs to be in the baseline. Otherwise, you're not going to get it, then it's a cost avoidance.

Then I think if you look at the presentation, I think it's also very important to say that it says greater than. So the way we go about it is that we would like to present something to you that we have a high degree of certainty we can deliver.

Then as always, let's say, we get better at it. I've been part of increasing the financial aspirations for our Air & Sea division for many times over the years. And there can be also some of the other divisions where we have to adjust our aspirations. But for now, we would like to have a strategy that is ambitious, but also where we can be motivated and deliver on.

Markus, did you have a question? Okay. Let me go to Andy. And then we...

It's Andy Chu from Deutsche Bank. A question for Jens, please. When you look at the history of the company, it's been a pretty flawless execution, beat and raise, beat and raise in terms of market expectations. But the last 12 months have been maybe, as you alluded to, Jens, a bit of a slip. Could it take a bit of time now to get back on your feet, something that you mentioned? And do you think, therefore, that your delivery could be more back-end loaded to 2030?

I think I would really buy into the thing that the company is not delivering what can I say, important outcomes. It's a very difficult situation if I compare to the peers. I actually think that it stands comparison to any of them what we're doing.

But anyway, there's a lot of things happening in the market in the world. And there's a lot of things happening in our company. And of course, what we try to do, if you look at this, it's hard work every day where you do fundamental change that allows you to transform the business.

Then, of course, we have to hit our numbers every quarter. And I think we are also doing so. If you take the last quarter, we had an FX headwind of DKK 160 million. If we had that, we would have hit exactly what you have. But of course, either you hit it or you don't hit it, it's binary at the end of the day, the perception.

So it's this fine balance then managing the stakeholders like the shareholders, but also being able to run the company with a long-term planning and a long-term grind where you then as top management have to take a little bit of the pressure off so that people they can run it internally and then also, of course, maintain the support from you guys.

I think over time, when we've delivered on the targets, I think it's always been appreciated by the market. But our journey there has always been a little bit, what can I say, sometimes a little bit above, sometimes a little bit below. But most times, actually, I think we've delivered the outcomes that we had said to the market.

You have to remember that if you look at the comparisons also for industry, we are delivering outcomes that are exceeding their outcomes by a vast distance. So -- but as you say, deliver on the quarters and the share price is going to explode. So I think Stig has made a note.

I take it. That was the end of the first Q&A session. There will be more. Now we'll be back in around 15 minutes. Over there, there will be refreshments and coffee and so. So look forward to see you all back here when we start up the commercial discussions. See you.

Thank you.

[Break]

Now you heard a lot about the tech, M&A, a lot of important stuff. And now comes in even -- well, at least the same importance, maybe even more, our commercial approach, how we want to grow organically. I know a lot of you still see DSV as a powerhouse for M&A. doubt maybe a bit our ability to grow organically. But that's how we have the pleasure today to have Vishal, our CCO, who will do the commercial introduction on how we do our commercial approach. So Vishal, welcome.

All right. So this is how you put $1 trillion in about 35 square meters. Now I know how to do that. It's my distinct pleasure to be with you and talk to you about our commercial approach and how we intend to drive organic growth in DSV.

The agenda, we will cover our commercial goals, the DSV commercial approach, how we are driving a very disciplined growth agenda in the organization. We will do some light dives in the customer segmentation that Jens has spoken about as the foundation for whatever we do. We will talk about the opportunities in verticals, how we focus on vertical expertise and how we bring products to life to service our customers, some opportunities on cross-selling. And then, of course, there were some questions around retention, how are we doing? What are the integration proof points. So we will talk also about the integration proof points.

Something has changed since we bought Schenker. The commercial conversation with our customers is at a different level than it was a year ago. The scale, the relevance, the product capability that we bring to the table is completely different, and it has changed the commercial conversation that we are having with our customers.

I want to give you an analogy and explain why that is happening. So perhaps many of you have been to China or attended a Chinese banquet. And you might know that where you are placed in the table matters. It's just not that you have a seat at the table, but it matters that you have the right seat at the table. And we believe that we now have the right seat at the table. And there's also some industry math behind this.

If you remember the slide around the industry leadership, the revenue and ranking, the two independent -- the two separate companies were about similar size, #3, #4. But the distance between the #3 now and the #4 is almost 75%, 80% by revenue. That matters a lot. When you're a supply chain officer in a large corporation and thinking about how your supply chain should be organized, who do you trust? And what is the risk in introducing different players, and it matters. So that difference has started to matter more and more. So that's something to keep in mind.

The other thing that has changed is that the combination of the two companies, the scale, the breadth of products, whether the strength of Schenker and contract logistics in Asia or DSV strength in United States and Latin America or the two companies combining the European networks, combining FTL, LTL with the groupage network.

When we look at the product combinations, it's at a completely different scale. and the range and breadth of products, there are no obvious holes in the product portfolio. And that also matters when companies are looking for partnership and they are looking for resilience and they are looking for the breadth of services that you can offer. So that's the second thing that has changed.

And the third thing that is different is the disciplined commercial approach that we are taking, the very deliberate and thoughtful commercial approach, which Jens alluded to, which was started in a couple of years ago, and we have been building on that. And I will elaborate as we go along in the presentation.

So our commercial goals as stated simply is retention of our key customers. And why is that? Because retention matters. Again, the math of losing a large customer is totally against if you have to make up the loss of a large customer through small- and medium-sized customers, based on the sales cycles, it's nearly impossible to do that in the short term. So our first priority has been to retain our key customers. So that was -- we started with retention.

Then we said we have vertical expertise. There are growth opportunities that we need to exploit within some high-growth verticals. We need to bring specialized products. So that's what we are doing, and I will explain that when we do the deep dive.

We recognize that, as I said, the seat at the table gives you a different conversation about the share of wallet with the customers. We believe that we have an ability to increase our share of wallet with our large customers and actually across the entire customer portfolio.

We also see cross-selling opportunities across divisions, and I will also present some data to talk about that. And of course, leveraging our global scale and capabilities, we want to make sure that we are winning new business logos. So I hope this lays out, and we will unpack this slowly.

So this is the disciplined commercial approach that we are using to drive our commercial agenda. So it's a way of thinking and if some of you are engineers in the audience thinking a little bit in terms of system thinking that levers are interlocking and they have a lot of self-enforcing feedback loops built into them. And we will talk about -- in the deep dive, I will take you through in the customer segmentation and on the vertical expertise. Let me talk a little bit about, for instance, the sales excellence piece and what we are doing.

So what we have been doing is really being disciplined about pipeline management, having a common definition of pipelines, the rigor in managing those pipelines. And it's just not about what the number of the pipelines is showing, but it's really about sales rigor and sales discipline.

The pipeline management is a bit like your blood pressure or any indicator. What are the pipelines telling you and how can we use the pipelines to steer our business to drive the growth agenda. And that's being driven in a very disciplined and a systematic way, cascading from myself to the division CEOs into the countries, and we have what we call like the operating system, if you might want to use that term, disciplined cadence about the reviews, and that's what we have started.

Talent management, we know that our global account directors, the account managers who are working with the largest accounts make a big difference. So we recently completed an exercise evaluating around 200 of our account managers, looking at how the distribution curve comes out. And this is important because when we look at the distribution curve, the ones on the right, we know are self-driven, performing. They are quite -- we know what to do. The ones who are not performing, we know we need to performance manage them out. We need to make sure that we replace.

But it's the middle that really matters. And the important thing that we want to do is to make sure that we shift the middle. And how do you do that is through the sales enablement that we are doing, making sure that we are investing in training, development and again, the cadence around pipeline management.

What we say is that if a salesperson is not performing, it's the sales manager whose responsibility is to coach. So our attention is not just on the sales people, but also on the sales management and how they drive that. So we've invested in new training material that allows and train. So when we -- the concept of feedback loops, when we know that something is not working, we know what we need to change.

If I then come to, for instance, the value proposition, piece. When the two companies were separate, we were traveling to different events. It was not really well coordinated. We sat down and said, which events, fairs, exhibitions, customer events do we need to be, which fits with our vertical focus, which are the focus areas that we want to be. We sat down with our marketing teams to say, all right, social media engagement for should be before, during and after. We want to measure how the engagement has been and then we take one step further to say, did we generate commercial leads? Are we able to convert the business? So we're very disciplined about taking that whole value proposition.

Now if I say when I'm sitting in front of customers, and this is the feedback that we get from customers, there has been a lot of anticipation and excitement that you're in the middle of this integration. So what does it mean? How does the new company? What's the combined value proposition? And I know that Frank will talk about it that when you combine the networks, it's really incredible to see the value that is being unlocked in being able to give a much broader product portfolio. So that's what customers want. So we've revamped our entire value proposition and messaging cadence. We've just released new materials. So we are staying inside the wheel, making sure that whatever we do is supporting our aspirations in a very disciplined manner. We've made a lot of success on segmentation, on sales excellence. We've just rolled out new material and new ways of managing the value proposition and where we are appearing.

Now I will unpack a little bit on the customer segmentation part and also on the vertical expertise. So segmentation is really the foundation for how we go about our business. Jens alluded to this, it's a way to make sure that we allocate the right resources, the right attention to the different segments of the customers. This does not reflect that any segment is less important than the other. It's just different ways of managing those relationships. It's just different ways of ensuring that you have the right products that are being sold. Customers have different needs in different segments. We want to make sure that we are addressing that.

This is the structure of the customer portfolio, and as you can see, when we say the top 650, the globally managed customers, we are taking a very systematic global approach in managing the approach to them. with respect to having account plans. So obviously, the top 250 have much more detailed account planning. And as we go down the line, the account planning needs are slightly different, but the same principles apply. We use the same global approach. We take a global view of the customer's business. We want to make sure that if we are servicing them in one country and if that customer is giving us business in other countries, then that ownership is globally managed, whether the customer is owned in a certain country.

So in fact, again, talking of feedback loops and how we use that, we've expanded that scope of the top 275 recently to include now the top 650 because we saw a lot of success with that approach in making sure that we are very disciplined about the account relationships and how we service them. And this is an exercise that we will take around once a year to really see how we are performing, how is that approach, where customers are moving up and down, what we need to do. So again, there's a very disciplined, data-driven and also a lot of thoughtful discussions and going all the way at the deck level on how we need to do this.

And in fact, I'll give you an example. We have customers which you could say are in the next 3,000, 4,000 -- 3,000 customers. And it sounds there might be a small customer, but actually, they're not. The interesting thing is that post the acquisition, customers who might be falling in the next 3,000 customer list for us are actually really large customers for medium-sized companies or maybe the #4 or 5 players in the industry. So they are used to attention from senior stakeholders.

And I can give you a couple of great examples. Without naming customers, we actually -- believe it or not, we have some customers that we don't do business with in the world, and they are high-growth customers. we probably have very little. And Jens himself has met them twice in the last year in order to try and break because we know that, that customer is a large account for one of our competitors.

Similarly, Frank, one of our health care customers, for instance, he's been traveling to the United States several times in meetings to try and break into. So -- and we've had success with both where we are starting to see the relationship evolve.

So the important point I want to make here is that we're not dogmatic. We look at where the opportunities might lie, and we assign the resources. And of course, as CCO, my job is a lot easier when my colleagues themselves are driving in the sales engagement. And that's actually a really important part of it. The senior level engagement and access post the acquisition has been just exemplary. And you will see that result also when we talk about the retention numbers.

The other thing I want to make here is that when we look at the 20%, what we call the remaining customers, again, it depends on who the customers are and what the approach will be, whether it's globally we dive in and take. But also leveraging from what Jesper and Jens have talked about earlier around how can we use more technology to digitize the customer experience at that end of the spectrum, how can we drive that? And certainly, that's going to be part of our playbook to make sure that we have a very, very strong digital offering for customers who may just want to engage with us.

So what we wanted to be is really a full suite provider with different approaches aimed at different segments, being very deliberate, disciplined, data-driven and thoughtful about how we engage and how we drive resources into this customer segmentation. So hopefully, that gives you an idea.

And the last point, and this is also an important point is that this drives accountability. It drives clear accountability in different parts of the organization because we know who's driving accountability for the top 650, we know who's driving accountability for the next 3,000 and then where the accountability lies. So it makes for a very transparent discussion between group commercial, between divisions, between regions and countries. And we all like to, let's say, healthy -- to have a healthy competition and keep each other honest and drive that. So that's really why this is designed in this manner. So I hope it gives you a better flavor on how disciplined and thoughtful we are being.

Then on the vertical side of it, this is how our GP composition looks. It's arranged alphabetically. So don't read too much into the order. But as you can see that two of our biggest verticals are consumer and industrial, reflecting the legacy business models. The technology business is one of our fastest-growing verticals.

Of course, we see growth in aerospace and defense, no prizes for guessing why in the geopolitical environment. And of course, health care, which is a secular growth area that we see and where we see ourselves still as a challenger brand. We've done some simulation. We obviously look at a lot of market data and research to see what's the expected growth and what should our approach be.

In our aspirations, we look then in the high-growth verticals where we believe that the verticals will outgrow the market. Our clear ambition is to outperform the market. We want to take market share in the high-growth verticals, make sure. In automotive, it's a turnaround. And of course, the whole industry has been challenged, and we have very specific plans to drive that turnaround. And in the other verticals where we believe that this is at least minimum grow with the market. And as I said, if you go back to the segmentation, depending on where the opportunities lie, we will not be shy in going and trying to take more share.

And again, coming back to the original point I made about the different conversation, the commercial conversations are different. We believe that we are really poised to grow our share of market in all segments. These initiatives are a sampling of some of the initiatives that we do, and I will take you through one of the verticals and explain how we actually do that. So the initiatives are very vertical specific. They inform the product development choices that we are making and based on customer needs and how we bring those services to the market. So again, it's very thoughtful.

We're building product service catalogs to make sure that when we are presenting and bringing products into the market in complementing our divisions and working very closely with the divisions, we want to make sure that they are addressing a need in the market. But let me take you through a little bit of a deep dive in this. And so if you just follow my chain of thought. So you look at technology within technology, then we look at subverticals, semiconductors, cloud computing, telecommunications and consumer electronics.

Within cloud computing, we look at then the customer scenarios, what are their pain points, what are they trying to solve within that subvertical. And of course, this is based on research and talking to the customers, and there's a tremendous amount of feedback loops that we have, and there's a lot of organizational knowledge that sits. And then when we go inside that, we'll do a light dive in White Glove delivery. If I took you through all the verticals and all we will be here until the end of the day, but just to give you an idea of how we do this.

So technology, cloud computing, we go into the White Glove delivery. So what is the White Glove delivery? So it's essentially when the server racks are being delivered into the data centers, they need to be handled in a very specific and precise manner. As compute capacity or they're becoming denser because more compute capacity is being packed, they're becoming heavier. And obviously, you know that an uptime or downtime in a data center can cost millions. So companies really want to make sure that you have expertise, you have a globally consistent way of servicing, you have the expertise to handle this very heavy precious cargo and there's SOPs on how you handle that. I won't go into all of that.

But it's a very specific way. We sat down with our customers and said, right, where do you expect the demand? And of course, AI centers typically tend to follow electricity where electricity is abundant or where they are able to secure. We map the countries. So that's why you see many countries in Asia where these data centers are coming. So we built a map. And then the conversation was how can you scale your service globally in a consistent manner. So we've built now an organization which is own -- DSV own expertise. We've brought that in-house. We have a consistent approach, which is supported by control towers. They're basically like if you think about flight controlling -- control towers that see what's going on.

And we want to make sure that no matter whether a rack is being delivered in Zaragoza or in Sydney or in Dallas, it is being done in a consistent manner. And we've gone one step further where we have said not all customers want a similar service. They have different scenarios. Some customers just want you to deliver it. The rest they will take care. Some customers want you to bring it in, plug the racks, make sure that they are working. So we have a full suite of services that we can offer. And this approach, if you sort of go back to the previous slide, we are using the same logic to go through the different sub verticals, looking at the customer scenarios, the needs, what are the product and service catalogs that we need to build.

And within that, what are the actual tiers of service? So again, very deliberate, very disciplined, very thoughtful in very close collaboration with the divisions, and Frank and Helmut and Maciej will talk more about this, I'm sure. Right. I promised you some data on cross-selling opportunities. So when we look at this Venn diagram, we can just start with the 41%. The 41% represents the number of customers in our top portfolio that buy all 3 services. So the first question is that how -- of course, as you can imagine, the first question will be, so how can we increase this to 60 or 70 or whatever. And that's, of course, our goal that we need to drive that.

But the important thing and what is that it proves a very interesting thing that customers actually want to buy across the divisions from us. They see value already in buying all the 3 products from us. And what we have done is actually we've kept the threshold a bit higher to say if we have meaningful share of wallet. So this 41% then leads to a different conversation that, okay, we do -- we have business with 41% of the customers, but what's our share of wallet in the individual products and divisions. That's the next conversation with the account managers, with the executives who are involved. And that's again a very data-driven exercise, which is also fed into the target.

We did that for the first 250 last year as we integrated it, we will roll that out and increase that into the next -- or to the rest of the top 650 program to make sure that, that reflects in the target setting and also in the incentives. Now again, going back to the wheel, we will then look at how the performance monitoring and how the incentives within the organization are set up. Are we ensuring that there is enough incentives in the organization to drive this cross-selling? And yesterday, Charles, you asked me that question and whether we align it. And the answer is absolutely.

And if you see the combination between contract logistics and road, only 5%. And of course, we know that if a cargo is sitting inside a warehouse, it actually has to move out. So there's a real opportunity. And also, we see that airfreight and contract logistics actually are very natural complements. Air freight and road logically, if product arrives, it needs to go. So what we are doing is really making sure, coming back to the point of transparency that our organization and our sales organization understands, it's then reflected in the pipeline.

Do we see this in the pipeline? Who's driving that? The conversation becomes much more richer. Yes, you have a large share of business in air and sea as an example. But what about road and contract logistics. So that's why we want to make sure that we capture and we mine our customer relationships to really drive this. Right. You've probably been waiting for this slide that I thought I'll save it for the last because you probably wouldn't have heard -- want to hear anything else. I think it's a statement to the customer approach.

And I would also absolutely like to acknowledge the efforts of all the senior management led by Jens himself and everybody in the deck to really be in front of the customers in the first initial phase when we started and after. In the first -- when we started the process, we had integrated -- we looked at the largest accounts, we had segmented right on day 1. We had assigned the account managers, again, following the best athlete principle, sometimes we had both the account managers in a very transparent manner explaining to the customer that, look, only one of us will be, but we want to make sure that you understand that this is a fair and transparent process and to give continuity.

We were in front of the customers in the first 30, 60, we had real milestones tracking whether those meetings had been done, whether they were virtual, whether it was in person, everybody down from senior management had their accounts that had been mapped out, and we really followed up to make sure that, that was actually done. And we tracked the first 60 days intact, first 90 days to make sure that initial period of anxiety apprehension that customers might feel that they didn't feel so that they didn't miss a beat in dealing with DSV.

And of course, the numbers then tell the story that we have managed to retain 99% of our largest global customers. Our NPS scores have been solid across the divisions, which is also a real strong testimony to all our organizations all over the world who are doing their best to make sure that we service our customers. Of course, DSV's legacy is built on operational excellence, and it's also in our mission statement. So -- but still, we don't take anything for granted and we know we have to earn our teeth with the customers.

Right. I don't know if there's a formula for success, but this is close to what we think might drive that. Increasing share of wallet, scaling verticals through expertise and really focused products, as I explained to you, increasing cross-selling and of course, retention. It's not mentioned here because we think -- we believe now with the experience that is something we've understood how to do that and something that was, let's say, a question mark in the previous acquisitions. And we believe that if we do this right, we can drive sustainable above-market growth.

Key takeaways. We have a different conversation. The commercial conversation has changed. We have the right seat at the table. The range of products and services we offer are unmatched. There are no gaps -- obvious gaps in our product portfolio when we sit in front of our customers. We have proof points on customer integration and NPS, and we are super disciplined and deliberate about our commercial approach, and we have tremendous buy-in from all levels of leadership to drive the commercial agenda. So I hope that gives you an idea of all the different levers that we can pull to drive organic growth.

And now it is my distinct pleasure to invite Dima, the Chief Supply Chain Officer for adidas on stage to give you a customer perspective.

[Presentation]

Thank you very much. It is my pleasure to be here today, and I wouldn't be myself if I would not have started with a brand video. Of course, that's what we do in adidas. Jens, Vishal, thank you for inviting.

Vishal, you spoke about the importance of customers. And I think the fact that DSV invited the customer on stage that does speak to that fact. But equally for us, it's important to have strong supply chain partners because without those, the company cannot achieve its growth ambitions.

Very quickly, a short introduction. My name is Dima. I'm heading Global Supply Chain for adidas for the last 6 years. But similar to your introduction, Jens and your management team, I'm in adidas for more than 25 years. So yes, my pleasure to be here. And I'm going to share today the story of growth and volatility. We are enjoying a very strong moments in adidas at the moment, and we are growing above the industry at the moment.

And, yes, this is what we shared with Capital Markets in March. These are regional growth results. So we're growing in all of the regions across the world. And you could also see that this is the third consecutive year of growth. However, life is never easy. It does come with volatility. We did have internal volatility. And of course, some of you are also participating in same days for adidas. You know we had tough times 3 years ago when we had declines. And also, if I'm showing the profit results, we also had close to breakeven, which is -- it is great for a large company like ours, and the last years have been the years of growth.

Why I'm talking about all of that? Because to grow, business is expecting from us strong support from a supply chain perspective. Growth is what everybody wants. But at the same time, volatility is what we all deal with. And this is where we need to work with, as I said at the beginning, the strong partners who can support. And I'll share today what are the important parameters for us when we work with our partners. many of you know and those who are in supply chain logistics world, this is just a small example of disruptions that were hitting us in the last years.

The very recent one, the Middle East war, of course, big disruption. But not long time ago, also India and Pakistan conflict. And to give you an idea, Pakistan for adidas is a very big origin to produce bowls. We are the sponsor for the World Cup. And of course, all of the balls are coming from us. And exactly at the point when the war or the conflict between Pakistan and India started, we had our CFS stations or origin warehouses full of World Cup bowls because, of course, we have pre-produced.

And at that point in time, there was a big question, what do we do? Do we push it out into the markets or we keep it in origin. So this is just the example of how those disruptions impact us. I'll give a little bit of numbers from our supply chain, and I will start showing what is it really important for us as a customer. On the top left side, you see the availability KPI. And I'm very happy that despite all of the volatilities, we are trending very, very strong. So 90% is something that we are really aspiring to. And we are there, as I said, despite the conflict and thanks to strong collaboration with our partners.

So availability, in other words, reliability is the #1 parameter that we require from our partners. And I'm very happy also to say that working with DSV, they absolutely support us in that availability. I also mentioned the World Cup here, 53 million bowls, that's the volume that we have produced for the World Cup. Just to give you an idea, it's 5x more than the normal annual number of bowls. Why I'm saying 5x more because it just describes another important thing that we need from our partners.

It's tough for them, but that's what we need. It's flexibility because 1 year, we need capacities to deliver and warehouse 10 million bowls -- that year, we need 5x more. And for us in supply chain was a 2-year project to also work with our partners to develop our supply chain in a way that we would be ready to deliver that amount of balls on time and full. And while I'm talking about balls and not jerseys because jerseys is easy. They're very small cubic. Bowls is a much bigger cubic. And unfortunately, our product managers think that some of the balls need to be transported inflated.

Logistics people don't like it. So container fill rate, 93%. Why I mentioned that? Because here, I talk about a third important parameter for us? It's cost. Yes, we all want good P&Ls, and we all want cost efficiency. And of course, with partners with whom we work on origin consolidation and DSV is one of our big partners to do the origin consolidation business. The container fill rate is something very, very important for us as to drive our cost efficiency. And yes, maybe right now, the market with container rates, good for us is prices are lower than they were some years ago, but especially at times when prices were very high, this container fill rate is something that is very, very important.

So reliability, agility, flexibility and cost is something that is very, very important for us as a customer when we work with our partners. Just to give you a glimpse of, call it, supply chain, one page in adidas. This is the real document, much shorter version than the internal one. But agility for us, consumer centricity is also equally important and innovation. And inside that, you see things like supply chain planning, inbound evolution, network for the future.

This is all what is relevant for us at times when the world is changing and at times when company is growing, like I have described to you at the very beginning. Sorry, maybe it's a boring value chain slide, but this is to show our entire value chain in supply chain. And with green, you can see where we partner with DSV.

Vishal, I hope we are in this 41% because we are doing business with you across the board. Yes, the biggest part of our business is more on the -- at the beginning, the upstream of our supply chain. We have very big business in inbound logistics, as we say, and we also have very big business in origin consolidation.

But at the very same time, as I said, we have -- we are represented across the entire value chain. And I want to give you today a couple of examples. And by the way, before I give those examples, I must give kudos whether you believe Capital Markets, but I was surprised that Investor Relations team did not check my presentation or align my presentation or it's purely those examples are purely coming from me. So three examples on Origin, transit and DC operations. What is important for us and maybe some of the joint working together and some recent examples.

So Origin, as I said, DSV owns a significant share of our Origin consolidation business. So that's everything that happens between when we release goods from the factory until goods are on anyone's vessel. So the second part is transit. That's exactly from, as we call it, from port to port. And again, here, DSV is also our very big partner with whom we work on the transit, be it ocean or air. We do both businesses. And DC operations, I think it's obvious, it's clear by itself. So let's go into one by one.

So first, origin. Things that are important for us, cost efficiency, pool-based supply chain. And also, I will give some examples of security and risk management, which becomes more and more important. So I think cost efficiency, I already gave the example of container fill rates. So any partner with whom we work, it is very, very important that they do good business in terms of how they manage the origin and how they manage their container fill rates.

And that's where, again, I'm very happy to see very strong results that we have with our partner. Pool-based supply chain and Middle East crisis, that was, again, a very good example of agility and flexibility. When the war started, our factories kept on producing. There was no impact on them. But our entities in Dubai and Saudi Arabia and GZ is actually our both ocean and origin service provider into those markets. So what happened, factories keep on producing demand is kind of not there.

So -- and transit is yet unclear. So we basically, over time, had to build up quite significantly and quite fast the storage capabilities and the storage capacities at our origins as to warehouse products that were produced, but we were not yet able to deliver into places like Dubai or Saudi Arabia ports for known reasons. And I'm very happy about how our partner and how quick the support was and how fast the ramp-up was. So that was a very, very good example.

Another one, security and risk mitigation. Going back to my World Cup example of balls, we also had an unfortunate situation that we felt with delivering Mexican jerseys, which are partly produced in Mexico into the U.S., U.S. is the biggest market to buy those jerseys. But we know Mexico is a corrupt place, and we know Mexico it's a dangerous place. So what happened? Our trucks were attacked. And one of our trucks unfortunately disappeared. And it disappeared with exactly the jersey that was yet secretive to the market, yes.

So long story short, we had to adjust very, very quickly. And again, our partnership with DSV who are doing this business for us. So the road logistics from Mexico to U.S. is with DSV. They were very quick to implement solutions, special security tracking. And thanks God, since then, we had no cases.

Transit. Well, I think I state the obvious. We work both with forwarders and also directly with carriers. So I can compare the pros and cons and each way has pros and cons, okay? I wouldn't hide the fact. However, working with a freight forwarding company like DSV what we get and what is very beneficial for us as a customer is flexibility and agility. On the one hand side, I deal with one company.

On the other hand side, there are very many carriers behind. So hence, it is very important for us to have strong partnerships, and we do have a very strong partnership with DSV in the area of both ocean and air business. I think this is since many, many, many years, we are our partners there.

And I'll go to the last point, network design and optimization. And I think this speaks, Vishal, to your point of consumer centricity because several years ago, we asked ourselves, okay, we have certain structure of our partners. We have certain network on how we deliver from very, very many places in Asia into multiple ports in U.S. So we sit down with DSV.

And at that time, DSV was neither doing Origin business nor ocean business into U.S. So in a way, there was no commercial business at that point in time. But nevertheless, the consulting unit of DSV helped us a lot, and we were working for some time together where the partner helped us to design and optimize our network. And since then -- and yes, including the recent results of Ocean tender, DSV is right now the biggest largest service provider for adidas when it comes to delivering to U.S. not the only one. There are others, but from no business into becoming the largest. And I would say that was the example of consumer centricity. There was no benefit -- direct benefit involved. Probably there was strategic intent involved.

And also at that point in time, it was cost for DSV to do this work for us, but it resulted in also increasing jointly the business together. Also, I'm very happy about how we partner up in different routing and lead time optimizations. A couple of years ago, the whole notion of responsiveness, building a faster and more responsive supply chain was a big deal for adidas. And we partnered up with DSV on very, very many routes where typically we delivered, I don't know, by ocean from point A to point B. And then we were again sitting together and peeling the onion.

And yes, maybe the price became a little bit more expensive, but we now do road and ocean. And yes, we pay the uplift because there is a road element there, but we win 2 weeks or 3 weeks. And this is the trade-off that is very important for us. And the reason I'm giving those examples because for me, it's all about dialogue and it's all about partnership working together because, yes, maybe the company like us is not necessarily the easiest customer because we have high demand, and we also sometimes want tailored customer solutions.

And this is where -- and this is what helps for the service providers to win the business if they are offering tailored customer solutions. And last but not least, we do not have big business on contract logistics, but we do have a number of warehouses that are run by DSV. They're also not the largest, but they're still a single DC in the country where we do business. And the way how we run our business in bigger countries versus smaller countries is somewhat different because we have much more resources in bigger countries and many things we do ourselves.

But when I come to some smaller countries, and that is the example which I gave here, we are pretty happy that we don't need to deal on each and every step of supply chain where -- while DSV is taking care of. Contract logistics only, so managing the warehouse, but at the same time, managing the inbound, connecting the dots for us, where we keep a very lean organization in the respective country. And this is, again, the benefit of the synergy across multiple businesses.

And probably to conclude, for me, the most important thing when we work with a partner is collaboration and partnership. We've been together since, I could say, almost 25 years, so half of your 50-year history. And since the last years, we also have partner summits, partner events where we invite all of our supply chain partners. And every year, DSV has been getting one or another award. And the most important one for me is the best account management, and this is what our teams decided across the board.

And here, I would say it's not you judge the company when things and times are good. happy flows, everybody can manage well. What defines for me partnership and what defines for me collaboration when things are not working all right. And let's be honest, we did have some hiccups. We did have some challenging moments in the history of our relationships. But I very well remember where back in the days, Jens personally was involved in some of those finding resolutions and finding solutions and bringing topics to the end.

So my pleasure today to share examples and I'm done by now. Thank you very much. Thanks again for inviting. I hope it was meaningful for you. And then I think there are questions, right?

Thanks a lot. I hope you've got a bit of insight into the commercial approach and our customer relationship. So now before lunch, we do a quick Q&A session. So let's start. A lot of hands already. Let's start with Ulrik over there.

Yes, Ulrik Bak, Danske Bank. Just on the retained 99% of the largest customers through the Schenker integration, is that metric measured in volumes or gross profit, just to be sure? And also, what's the number for the smaller segment that you outlined, please?

The number represents the amount of customers. And as Jens mentioned, we focus on the gross profit metric as the key one to cover. hopefully, that answers your question. Yes. The second part of the question, we don't -- I don't have that metric at the top of my hand, but we'll make sure that we get back to you on that one.

Yes. Let's take Marco up front here.

Marco Limite from Barclays. So your strategy is to grow above market growth rate. Can you give some indication about around timing? Is there an ambition for 2027 or the second half of 2026 already? And if I can take another one, how do you incentivize your local sales force to grow ahead of the market by also being diligent on pricing, so not diluting prices while still growing above market?

Yes. So maybe I'll take the second one first. On the incentive structures, we're very clear that the incentive structures incentivize gross profit growth in the way they are structured. So there's always an element of awareness that it's the growth -- the net growth that matters. So that's what the incentive structure does. So that ensures that what we are chasing is not unprofitable volume. So -- and of course, gross profit growth is a function of volume growth and the margins. We want to make sure that, that is incentivized. So that's how we do that.

And then I think we've -- in terms of the organic -- I mean, the above-market growth, of course, that is our medium-term ambition. We are obviously in the middle of integration and the markets obviously can be volatile. But I think Michael has -- what we have reiterated in the guidance is what we will stick to that.

I have one question here for you. The question is, where do you see technology helping deeper or broader integration between DSV and adidas?

That's a good question. Jens, we just spoke partly about it. Well, I think technology could help in very many places. For me, it's mainly the data exchange. And also, for example, in the area of ocean, having reliable ETAs, so estimated time of arrival. That's very, very important for us. And at the moment, we are not happy about it. In general, it's how the industry works. And here, technology could help us a lot. or purchase order management. So that's another example where technology could help us a lot. And of course, we are sometimes looking at what can we do in-house or versus what we can buy.

Arthur Truslove from Citi. So you showed the slide that had 41% of global customers using all 3 divisions. Do those customers tend to deliver higher gross profit per unit, for example, in air and sea? And also, how would that 41% number compare with what it would have been, say, 3, 5 years ago or whatever that have a long ago?

I don't have the number on hand or what it was 3 or 5 years ago. But I think the blended gross profit margin is reflected in our annual results. And I think when you look at across the divisions, it sticks to that. When we look at the margin profile in the biggest customers and different segments, they are quite similar. So yes, so that's what I would say.

And just in front, yes.

It's Marc Zeck from Kepler Cheuvreux. I've got a question for Tim, if I may. Have you seen AI solutions in supply chain management, logistics from nontraditional logistic players, new entrants, software players that now do logistics? And if not, if there's anything where you feel like these solutions are still lagging for you to take up nontraditional logistic players as new service providers? That's my question.

Well, AI is a big topic for us, and we are looking at very many solutions. So both solutions that are offered by big companies, solutions that are offered by classical tech companies. But also we are looking at options where we can in-house some of the solutions. This is, to be honest, inside our company, currently, the biggest debate or conversation that we're having, how much we want to buy those solutions no matter from whom. That's not the big discussion where we buy them from. The biggest discussion we have what we buy as solutions versus what we develop ourselves. And the answer, the more commoditized solution is and the faster we can get benefits ourselves, the more chances we will buy.

I have one more question here, and that's also for you. There's been a lot of discussion about technology forwarders are purely tech-driven forwarders. Do you see adidas moving to these AI-based tech guys instead of using more traditional forwarders?

Well, not at the moment. So I think there are multiple factors. One thing is technology-driven forwarding, but at the same time, for us, as I said, the years of reliability, the speed of service, the quality of service, but also partnership because we are a big company. And for us, stability is also very important. And especially when disruptions are happening, we need to make sure we have trusted partners. That's why at the moment, it may change in 2 years. But at the moment, it's rather staying with those with who we are.

Let's take Alexia down here.

Alexia Dogani from JPMorgan. I have the same question for both, if that's okay. Amazon Supply Chain Services has now proposed a new kind of packaged offering to maximize the current infrastructure they have. I guess for adidas, what would you consider kind of moving to that platform? Are they a credible competitor? And then similarly for Vishal, Amazon is a customer of DSV, maybe kind of under different acronym. But how do you manage that customer relationship when they are publicly suggesting they want to enter your market?

And to answer first, maybe...

Well, it's not necessarily always easy. You mentioned Amazon. We have multiple relationships with Amazon. On the one hand side, they are our tech provider.

On the other hand side, they are in U.S., in particular, they are our commercial customer. And the third part, they have their own supply chain. And they are also, while being our customer, they're trying to sell -- or sometimes push their supply chain services. There's no one size fits all. So yes, it's Amazons of the world, Zalandos of the world. It's always finding the right balance. But also sometimes, we're also trying to have separate conversations. I know it's not easy. But in those large companies, they do, in a way, have Chinese walls between different divisions. So we are trying not to mix it up.

I don't know if it answers your question.

Yes. And from my side, I can just say that like any other company, Amazon looks at their own capacity, what they produce, what their own demands are, what's the strategic rationale for using own capacity or using outsourcing or where they are strong, where they are not strong. We have tremendous strength in Asia, in China, in a lot of places in Europe, where perhaps they may not necessarily have that in the United States, they may have in other divisions.

So I think this is a -- it's not a tension, as such. It really -- because they're growing really fast and, to Dima's point, you saw the complex services that we offer in and around the world in the range of products that we offer. So there's always room for us to collaborate and grow our share of business with them, even though there may be some areas where we may compete.

So -- and also, given the fact that the industry is so vast, given the size of the industry, there's plenty of opportunities for both companies to collaborate or compete in different markets. So that's how we see it. And that's also playing out. We still see a lot of demand on all sites from them so.

Quick last one. Lars Heindorff?

Lars Heindorff, Nordea. For Vishal, so historically, DSV's claim to fame has been growth with the SMEs...

Growth?

With the SMEs.

Growth with SMEs, yes.

This strategy, which is now a couple of years old, I think, maybe 2, 3 years old. In that process, where have you seen the biggest growth in GP coming from? Because I think that's a SME, I would say, typically carries higher GP margins compared to some of the bigger ones?

I would say that there's -- that's 2 things. Obviously, you saw the retention rates. So that's an important proof point. And the other point that I made around the customer conversation having changed in -- we have the right seat at the table. If you're more relevant to your customers and you're solving more problems, it's a false narrative to think that larger customers that you should have your margin structure lower than the SMEs. It depends on the relationship, the leverage and the value that you're bringing.

So I believe that as we go forward and as this plays out, you will see that it won't be a narrative about the SMEs have more margins. I think we will also start to see that what we do for our large customers also has a profitable and even better profitable outcome for us because of the value that we bring. So I think that's -- so it's not a one versus the other. It's how you approach and how you service and how disciplined you are about the value that you're bringing. And whether you're selling with confidence, because the commercial conversation has changed, and that's what we are trying to drive that -- we are not a challenger. We are an industry leader, and we need to, with respect, with humility, sell with confidence, and I think that's what we will see playing out.

I think that was the last one. Now it's time for lunch. Lunch will be served. You go down there. And then across there are -- you can see signs where to go. I just want to emphasize that in the lunch break, you have about an hour now, there will be opportunity to go over there, where Volvo is -- will have a presentation. They will do 2 presentations, one right away and then one 5 to 1. So maybe split up, some go to lunch, some go and see this autonomous truck and see how -- what that can change the road market in the long run at a time where we are lacking drivers and so. So good lunch and back in an hour.

[Break]

Getting ready for the next session. And now we move from strategy, technology, customers, commercial into the real stuff, the operations, where we'll go through the first one, from A to B, and then we'll take the divisions one by one. And to do the first presentation, we have the honor to invite Brian Ejsing on stage, who will take you through the physical network from A to B. Welcome.

Good afternoon. It was my job to keep you awake after lunch. Let's hope that it will be successful. I'm Brian Ejsing. I'm the Group COO, and been, as Jens said, 40 years in the company. And [ Stig ] told me they have no idea how actually a shipment is moving. So could you please tell him a little about this. So I will do that.

But first, the agenda. The global disruptions. Dima has talked about it, and I will elaborate a little extra on this, then the shipment journey and how we perform this. And then a couple of strategic terms for us, the DSV control towers and the Customs AI, and a little wrap-up on AI and technology.

So our mission is to keep supply chain flowing in an ever-changing world. I think that it's fair to say that was a good statement we made. When we made the mission statement, the world is ever changing and has been very, very demanding for us over the last years. I do not have the Indian Pakistanian war on my list as adidas has had. But in principle, we have quite a lot of disruptions over the last 5 years and perhaps we could just dwell on a couple of them, like the COVID-19.

What happened for us when we did COVID-19, a large surge in need for warehousing space, suddenly, all governments need to store PPE materials. We had warehouses over here completely filled up the PPE material from the Danish state. But all over the world, huge demand overnight for extra warehousing space, in which we had to apply for.

Then 2022, the Ukrainian war, political decision for us to close out our business in Russia, to sell it off, to stop all transports through Russia. Of course, we have to do that in conjunction with our customers, helping our customers to find other solutions. So quite a project for us to do this.

And then in April 2025, U.S. liberated themselves for the second time and wanted to introduce tariffs to the world. Huge surge in demand for air freight and sea freight to get products in before or to create a U-turn solution. So we could get down to Mexico and up again, which was exempted. So then huge change in the supply chain and a surge to get things in there. Now, in February, we have to reverse it all again. So that's going to be good fun when we have to claim back the duty, which was paid. I'll come back to the Hormuz Strait later. So quite a lot of things we have to adapt to all the time. And there, of course, you need a strong infrastructure and a strong organization.

So [ Stig ] said, they have no idea how a shipment actually is traveling in the world. So I'll try to do this for you. We took the shipment -- could have been an adidas shipment where we, in principle, move it from Shenzhen to Aarhus. It's a journey of 25,000 kilometers. It takes 30 to 40 days on the sea. And why is it not 32 days? It's something called port congestion. So perhaps the ship cannot get in when it's supposed to get in, perhaps it doesn't depart when is supposed to depart. So it is not a perfect delivery time, meaning that also the events which we published to our customers all the way through is a very large importance to them. And I think Dima's also said that, that he needs the ETA. The ETA for him was super important. And this is one of the reasons why, because we do not know exactly when that's supposed to be.

We will pass 3 choke points on the way. The first thing we do here, hopefully, our customers have gone into myDSV and have clicked on the quote and book and has received an electronic quote from us, and they can just click on the bottom, and then they have appraised the book. And of course, at that stage, we capture the order in the platform and we trigger some automated order management. What is an automated order management? It means that we automatically, in our systems, ask the road division to go and pick it up. Of course, there are some risks in this. Incorrect Incoterms, yes, we talked about it. Creating the perfect bookings is, for us, very important. Otherwise, we will have to adjust this later or a mistake follows all the way through in the chain.

We will go and pick it up. It's 450 kilometers of road freight. So you can see, China is a big country. And we have to bring it back to our CFS station, that it's called, where we consolidate the containers. Here, of course, we have a problem. If we miss this deadline in the port, 5 to 7 days delays before the next ship comes in, Dima's is not very happy. So this is, of course, for us, very important. What we do, we activate the milestone, so our systems will, all the time, tell the customers and ourselves, our people where we are in the journey.

Then we have to perform export clearances. This is the first time we dispose this shipment to our Customs AI. I will come back later. The Customs AI and what advantages it brings to us, but we activate our Customs AI to create the export custom clearance, where we will perform the export custom clearance and we can leave China. It's important to understand for you. Very, very, very many different rules in varied -- in a lot of countries. It's not a unified process at all around the globe. So here, we need specialists in every single country to be able to actually get the shipment out of the country.

We start our journey. The ocean freight from Yantian in South China to Port of Hamburg, it will pass -- or it should have passed 3 choke points in the journey. One of them is by Singapore, it's not really a choke point, but it's -- if you've ever been to Singapore, you will see thousands and thousands of ships lying in the bay. It's straight up, only 2.7 kilometers wide, and it handled 30% of the global trade is passing this, but never a narrow strait. We really wanted to -- our shipping company really wanted to pass the Red Sea into Suez Canal, but Houthis make sure that that's not actually possible. So today, we spent 10 day extra to transit around Africa and the Cape of Good Hope.

Here, we will have visibility all the way through. There will be pings from the ships, which goes into our systems, so the customers, in this respect, are able to see how far we are in the journey. We here also activate our DSV control tower. So adidas, as an example, will be using this control tower for us. And what is it the control tower do, I think this is a very clear picture. It takes out the complexity for the customers. The customers, such as adidas or other larger accounts, will have multiple countries, multiple point of contacts. If they didn't have the control tower, they will have to deal with several IT systems, the customers' IT systems, we will have to deal with several different, a lot of customers even have various IT systems themselves.

A lot of documentations, which is very much different, and there are no end-to-end visibility in general. So our control tower will consolidate all of this and create a kind of a cockpit, both for the customers but also for our operator. We will dedicate people in the control tower, which, in principle, are looking after all the transport globally, all 3 divisions on a specific customer. And they will receive this one entry point for, just say, for everything. But in principle, it's a one point of contact. So what is the advantage? We believe that we have a -- or we do have a leading control tower concept and footprint in our industry. We're covering every mode and every geography.

It -- for us, it provides a cost reduction of around 20% in how we operate this customer. We -- and this is an example of a customer. We handle around 100,000 shipments across 35 countries for this specific country through one single control task system. We are able to change the mode of transport demanding on the -- the demands of the customers. So we are able to create a visibility and make changes on the way. So they get -- able to deliver the balls to the FIFA World Cup, as an example. And then as adidas talked about, we performed continuously improvement. We find the continuous improvement to lower the cost for the complete supply chain for the customers. So through this, we are able to, let's just say, take the customers on a much more professional and longer journey with us. It's -- when you're into the control towers, very, very seldom that they really want to break out and use the other areas.

Our journey continues through. From the Port of Hamburg, we have to truck it up to Horsens, which is a small city on the other side of Denmark. And there has to be performed here, customs documents to pass the border. But in reality, we activate our Customs AI once again. So let me go through what the Customs AI do for us.

So we are scaling the Customs AI across all markets in the world. It is a unique one file system where we reuse data from the export custom clearance into the import custom clearance. Per tradition, you would perform an export custom clearance somewhere and you will perform an import custom somewhere. And you would not reuse the data, you would not use machine learning and -- to generate the import customs clearance or the export custom clearance based on the number of transactions you've done. So we have -- we have created the Customs AI, which are able to use machine learning to do this and is a one file system.

It actually do a couple of things. First of all, of course, decrease the unit cost. It gives us a much higher -- or much lower production cost, but it also increased the service quality towards the customers. They see less mistakes. Strangely enough, AI and machine learning creates less mistakes than the human. It is actually a little worrying, but this is the case. So it gives both a quality boost, but it also gives a productivity boost. So we are -- and we are able to plug this system into all our systems.

We are rolling it out at the moment. We are on 47% in March or after Q1. Out of 100, we will roll it out on the remaining 100%. What we've done as well is that we have created a special department or a group called DSV Customs. So we are extracting customs employee team members from all parts of their organizations into the DSV Customs. And in this sense, create a specialism or special department, which are able to perform customs worldwide also as a broker. So we have also put some of the expected efficiency gains up. So we are able to perform an export custom clearance, which is the start, approximately 30% more efficient than we were before, based on machine learning and OCR.

And on the import, up to 50%, 60% less manpower on the import custom clearance based on the one file system and of course, once again, machine learning. You have to remember that we performed the same custom clearance many, many, many times for the same customer. So they have the same suppliers. They have the same importer. The invoice looks the same, which has to be the base documentation for the customs. So it's actually an easy machine learning exercise.

As we said, organic growth, we are now developing DSV Customs also to become a broker, but also to become adviser, also to become a cockpit like the control towers, where the customers actually can get a one view on the customs facilities. And here, we are actually also able to deliver a type of a 4PL service. So if a customer has another customer broker in Latin America, they can upload the data in and we can create this one. Cockpit, we feel is a reasonably unique offering that we are bringing to market.

We continue the journey. Well after we've done the custom clearance, it goes into our logistics facility in Horsens, just -- on Horsens is a new facility. 222,000 square meters of warehouse space, the largest warehouse we have in DSV. And the transport center is -- they're supposed to be the largest in Europe with another 50,000 square meters of cross stock. We handle 1,200 trucks in and out per day.

The customer here, let's say it's adidas. It's not, because we don't have warehousing for adidas in Horsens. It goes into our warehouse. So seamlessly, it moves from the TMS system, Tango, if we talk about the future into our VMS system, and it will be stored there until the customer actually calls it off. Eventually, he wants to deliver to Horsens -- sorry, to Aarhus. We are here using, as Jesper alluded to, AI to do our transport planning to actually tell the customer when will I arrive, will I arrive at 10:00, 12:00, 14:00 at your facility. So the ETI will be updated, and the customer eventually, of course, will see it in the visibility platform, but also -- will eventually also get an invoice from us. This is, of course, important. We would like to be paid for this.

So this is a little journey. I counted the number of updates we do, and we have between 17 and 23 updates for customers on a journey like this. So of course, it demands lot of systems talking together. It's seamless transfer of data from the road system into the sea system, into the road system, into the warehousing system and into the road system again and then into the customs as a background all the way through. So quite a lot of complex data transfers and visibilities are needed for this. So one transport, which we confirm and we perform millions of every single months.

So the essence of what I've tried to say is that the AI, here as a Customs AI, is just a lever and never the solution itself. Of course, you need to have a clear strategy of what it is we want to do, how you want to perform it, where you have your infrastructure placed and how you want to seamlessly work together. Secondly, of course, you need to have the technology and have that developed. We have an in-house development here of the AI, of the Customs AI. And then you -- we are believing, and Jens also alluded to it, we want to organize ourselves around these domains, around this technology to be able to harvest the synergies, but also to be able to create specialism and new products. So all of these 3 things, if we can get them all to play together, that's when we create value.

So just the key takeaway for me -- I can see I have 26 seconds left. The global network is designed to operate through structural disruptions. We are able to operate when it gets warm, and there's panic on through the actual many stations we have and through the systems which we have set up to cater for this. We have a market-leading control tower solutions, which brings a lot of value to ourselves, but also to our customers. We're actually transforming customs into a powerhouse, like a couple of our competitors also report separately. We will not report separately, but it's a powerhouse, we believe it's a very important market.

And logistics remains a people business. So technology scales it. And as an example, I just want to say, when it's a people business, we have 5,000 people in Middle East, which has been under scrutiny for last 2 months. There, it really has proven to us, it's not a matter of just having technology, it's actually a matter of having the right people and the right DSV DNA in place. And also adidas was here telling us that we've done a very good job on this.

This concludes my 20-minute presentation on how a journey actually goes through our systems. I hope you enjoyed it. I will now leave the podium to Frank Sobotka.

Thank you, Brian. You have taken us in a wonderful journey of freight forwarding. So you have well explained all what we do in our business day-to-day. So actually, I could go home. No, no. I'm very pleased to stand in front of you and discuss a little bit of Air & Sea, provide an update.

Yes, the agenda, Air & Sea at glance, so where we are from the major KPI perspective; market perspective, manage the uncertainty. Actually, we have a lot of discussion with our clients. And one of the top, top arguments has always be flexible and manage the uncertainty. So whatever comes up, find solutions, be flexible. Strategic focus areas, of course, always important matter to challenge ourselves and to aim for the better. We constantly drive a pull-through mentality. So that is one of those things.

Networks and services, I think Jens alluded to, I'll share some ideas and some updates on that. Volume and yield performance. I think this is one of the topics you are most eager to listen in. Of course, this is a constant KPI we monitor almost every day and we are discussing in the organization and for aiming to improve those items. And last but not least, lifeline has always been systems, TMS, type writers back then when I started my apprenticeship in [ freight forwarder ], there was no PC, no transport management system. It was letters and typewriters and Telex machines, then Telefax came, wow, what a deal. Now we talk AI and technology.

So what are we now? We are happy to handle 3.7 million TEUs globally, on behalf of many, many different clients in all kind of segments. I think also Vishal mentioned it, how they are structured somewhat. Then we are managing 2 million freight tonnes air freight. So this translates into permanently having 68 to 80 full freighter 747-8 flying around only for DSV every day, to give you a little bit of a relation. Then we are active in 90 countries. We have 36,000 employees, so we have a huge workforce. And then very, very proud of that we manage that we captured 850 tenders. So if you compare from the legacy DSV now integrating Schenker, we have almost doubled the tender work, meaning in reflection that the clients do need and want us at the table. So we had not expected it. I would have expected an uptick of 20%, 30%, but not almost doubling. So the clients kept us busy in that.

Then from a regional coverage, I think we have a second to none network, very, very much balanced, surely, with all the history from Europe. Europe logically is one of the largest areas we operate in. But please also take a look on APAC, where we generate 27% of our activity; North America, 9%; LatAm and EMEA. I do believe it's a good, good balance over time, also considering the macroeconomics and the GDP trends, I would say, other regions rather than the oil economies, such as Europe and U.S. will come on stronger. That means Asia, Southeast Asia, we have seen a lot of positive trend over there. But also LatAm is constantly increasing and EMEA and African continent will be a topic for the next 10, 20, 30 years, right? So this balance out. The good thing is we are in all these markets with a foot on ground to help our clients.

And then one of the most delightful things in our book of business is that our share in air and ocean almost equally strong. If you have observed the freight forwarding market in Air & Sea, you will always say there are some more ocean freight times, then there's more air freight times. So it's a little bit of a shift between the modes actually. So we can always well balance it. So we are not depending on one core product, right? And of course, we listen into many, many discussions with our clients, air to ocean, preventing high cost of transportation, preventing CO2 emission. But overall, you can see in our balance stays quite balanced. So we are well positioned from that angle.

Then stronger than ever with Schenker, just some highlights. We have really now become the true global player. As I alluded to earlier, I think we have a very, very solid network in all corners of this planet earth, then again, perhaps not covering Africa in all countries, but there are also some places you do not want to be these days. So then we can really work with preferred partners to cover our needs. And once the timing is right, based on the African strategy, I have agreed with Jens, we will then aim for investments also in more legal entities.

Then market-leading position in many, many verticals. Vishal, you have shown us that some might need a turnaround and a downgrade when it comes to the old car manufacturers in Europe and U.S., for instance. We can well balance that out. And meanwhile, by combining the business in technology, high-tech, cloud computing, health care, aerospace and also the luxury segment, which is also facing some tough time, we are able to balance out our overall volumes. The most important thing is really bundling the industry expertise, really being the partner for our clients because they want to talk luxury. They want to talk defense. Why should you talk with a defense specialist about handbags, most probably he's not that interested in. Or the hyperscalers with all the speed of building up infrastructure, cloud computing and what have you. They want to discuss their needs. So we have actually pooled the best operators, the best knowledge in control towers and vertical expertise really being geared to take those talks and understanding the needs and the growth potential in those.

Then more volume in the sea network by just merging both networks, and it's not finalized yet. We are seeing a huge scale in LCL. We have ramped up, I would say, the largest LCL network comparing with our peers, and we can easily compete even with the co-loaders. So that's a good baseline. Is that all finished? No, most probably not. I will come back to that later. And then, of course, stronger connection with the ocean carriers and the airlines. They are super strong partners to us. We need those. So we have, in both segments, core carrier programs in place, where we discuss about future, where we discuss about budget, volumes, filings, mid-term, long-term deals and also where to position certain capacity. Finally, were in -- back then 15 years ago, we could hardly had those kind of strategic talks because they would say, "Listen, you with your 300,000 TEU, I wouldn't listen." Now actually, they listen, and you will see some more of it later on.

Then air freight demand continues to grow not on a super high pace for now, but it's following the GDP expectation of plus 3%, which is actually a good outlook because then there is no downfall and we can build upon increasing volumes. What are the drivers to it? If we look on it from 10,000 feet, it's predominantly high-tech cloud computing, which is driving volumes up. And still, it's e-comm from Asia, shifting from the transpacific corridor with the de minimis, which have been implemented after Q1 in the U.S., shifted more into the European markets. But I can also rest you assured that there's a lot of traction into Latin Americas meanwhile, or in the Middle East and Africa. So the Asian traders are very clever in elaborating new markets. So overall, there had not been a major impact from the trade changes and the tax changes in the U.S., while trade land-wise, yes. So the volume have tremendously gone down from Asia into U.S., while they have shifted it into Europe, near Middle East and Africa.

Then looking in the aircraft manufacturing market, both Airbus and Boeing are having a huge order book where they cannot really fulfill. So there's hardly any full freighter capacity coming in. The announcement when the new A350 should be released is postponed, postponed. Also, Boeing is postponing the full freighter version. What does it mean? That capacity is somewhat under control for the next years. So there's hardly any new full freighter coming in, belly capacity, yes. If we talk about widebody and passenger aircraft, then you can also put in some lower deck ULDs without any doubt, but to move larger volumes need also full freighters, and this capacity is quite limited due to the fact that the manufacturers are really not gearing up or cannot satisfy the market. So the capacity is under control. Remember that because next slide will tell a little different story on ocean freight.

And then, of course, we have said, manage the uncertainties, what's up tomorrow. Sometimes we really do not know. Now with the Middle East crisis, where one large part of the air freight cost is fuel, fuel surcharges raising like no tomorrow. We have never seen such a peak since 1990, which is a huge driver of costs in the overall calculation. So it makes 40% to 50% of the overall cost entertaining routing, depending, of course, on the jet fuel price, but it has a huge, huge impact. So we have also seen the announcement from some airlines to downscale. Lufthansa, SAS, KLM, Air France to downscale certain routes, right, even on passenger flights.

For ocean freight, we expect a growth shy of 2%, so a little less compared to FX, still a growth, which is good. It's not really balanced everywhere, but we see certain trade patterns. Then one -- and in comparison to air freight, the order book of the ocean carriers, the highest ever. So in the next 2, 3 years, you will have a deployment of almost 24% of the global existing capacity on top. So there's hardly any scrapping or if there's scrapping, it's only limited. And the years to follow, if you calculate in all that, there are 35% of orders outstanding with the shipyards, 35%. That means we will most probably have a surge in capacity. So we definitely need to grow off the market and keep this under balance.

Then structural congestion, we've discussed about that. Not everything is perfect in supply chain management. This is, therefore, we are in with all the tools and the flexibility, boots on ground. The schedule reliability from the ocean carriers sometimes reaches 55% to 60%. You will actually not sail with a container ship if you know that there's a chance of 40% to arrive on time. So -- but this is reality. And then on top, you have some fundamental infrastructural problem in the ocean freight ports. You see this in North America, U.S., permanent congestion. You have same congestion on the Northwest Continent port, Rotterdam, Hamburg are always congested waiting times, but -- especially now with the shifts India subcontinent, Mediterranean ports are all saturated. So need we to balance in and factor in a certain waiting period until the ship can berth unload and load containers.

Then again, Middle East carriers have stopped sailing into the final destination when it's in the crisis area. So they will most probably offload cargo in the next possible port. So again, we are there to manage the containers from that angle and truck them over with road or other service providers to the final destination. So we are there to help, but is, of course, manage the uncertainty.

Then DSV and sea focus areas. We are leading across the full service offering. What that means also now with the integration, contract logistics, very experienced in many areas of our verticals such as the hyperscalers, technology contract logistics, road, white glove service. So we really can bundle our strength across division to make it work. We always aim for the end-to-end service portfolio and service catalog, while we are the one in the middle, operating the long haul by air and ocean.

I think we can create very and cover very complex demands. This is actually the driver also trying to expand on the individual verticals. Every vertical has a different demand. Talking about pharmaceutical, you have all the temperature-controlled GDP compliant topics, you really need to ramp up in the network. There is no failure allowed. And well, if you fail too often, then you're our utmost problem.

Still true light -- to our asset light module. Of course, we are sealing some long-term deals in our air charter program, but we are a true believer in the asset-light model. There's no reason to invest in owned ships. We are actually questioned quite a lot, why shouldn't we deploy own vessels? Not really. It's not good for the balance sheet. And air freight, then we prefer to go out for long-term commitments and charter agreements rather than buying an aircraft. Well, nobody knows.

Then enhancing our air product services resilience and flexibility. So we have a tiered approach when it comes to air freight, I will allude to on the next slide. Then optimizing the door-to-door delivery service. My best partner in servicing us together is Helmut with the road organization. They are managing all the pickups and all the deliveries, all -- is almost all not 100% because there are some special cases where it does not work, but the aim is, of course, to reach 80%, 85% of coverage through our own road network, so giving the full transparency also from a system landscape. And then strategically investing in Tango, where I will come back to later.

This is a key approach, what I try to allude to now on air freight, we call it the 3 plus model. So we have the global tendering of our efforts. We are actually the only one in that size going for bid to all the airlines. So it's an official tender we are running. So we're awarding a business once for the summer flight schedule and one for the winter flight schedule. So it's half year deals, where you then log in hard binding terms, hard block and soft block agreements with the airlines, covering 45% of our volumes.

Then you have a regional consolidation where certain countries and region worked closely together to convey another 30%. You always need some regional partners and airlines, not every airline is covering the world. And then don't forget, manage the uncertainty, be flexible. We still have 15% of spot buys, meaning the freight forwarder are really getting a call saying now it's urgent. Air freight is always urgent, we are told, so we're happy to convey that. So that the operator really needs to reach out to the different airlines saying, "I have 500 kilos here and there. They need to be in -- wherever, Dallas tomorrow. Can you make it work"? And then you really need to deal and wheel and find solutions quicker.

And then where we are necessarily proud of is the Air Direct, is 10% of our volumes where we operate an on-flight schedule, which is displayed on the next page here. So we are actually connecting all major hot locations from a trade perspective and from a client perspective. The nice thing is this is -- we are in control of the capacity. We design how the aircrafts should connect, how they should fly. If a client comes and say, listen, I have shifted my buying pattern from whatever, China to Vietnam or from Vietnam into India, it takes us a couple of days, sometimes weeks to get the license so we can reposition our capacities in those markets. This gives a really good value prop to the large-sized clients who are really in need of constant sustainable capacity, also talking with the pharmaceutical clients or aerospace and defense.

We have created a hub-and-spoke system. You can see it for yourself. So we are really connecting the dots, and then there are some feeder flights into it. So that's quite nice. If you like to sell jet fuel and kerosene, then it's exactly the right spot to be in. Very dynamic. So that's really a good value prop. And I think, Vishal, you can confirm that when talking to the clients.

Strong balance in the ocean freight business, we have organized in core carriers. So we are pooling with a handful of our core carriers, Group #1, actually 76% of our volumes. Why? Because we want to have the pull-through and procurement and be relevant to those carriers. Then we have Group 2, where we consolidate 13% and then some niche carriers. And Group 3, they conduct 6%. Most importantly is that we pool on the higher level with the strategic partners where we come together, can have a joint mission and the strategy understanding, not the ones who are trying to pull our leg and stealing our business most probably, right?

So we are in very good control, meanwhile, from a very diversified landscape and legacy DSV to a more controlled capacity managed entity in Air & Sea. So we have learned our lessons. Then, of course, it needs to be said that you know there has been a lot of consolidation in the air ocean carrier market. Actually, there's only 3 relevant alliances left. So we also need to make sure that we are well positioned in all of those 3 because they have all, a different service pattern. But we have managed that well.

And then talking about scale and leverage and procurement and what have you, don't forget, they are our partners, but we also want to have a say on the table. These deals range from 25,000 TEUs, which you could say, well, that's not really changing needle, but it goes up to 800,000, 850,000 TEUs a year. If you multiply with the average U.S. dollar fee, you can well imagine how big the bill is and how big the partnership is. So we are definitely a valued partner to all of those. And then, of course, it goes along with key account management, C-suite meetings and what have you.

LCL, 72% of all our LCL shipments are ending up in own boxes. Well, is it good enough? Most probably not. We are never satisfied. I mentioned it to you guys yesterday during the dinner, I think, we will never be satisfied in DSV. We always aim for the better. So logically, we have a higher ambition. It should be 80%, 85%. However, you also have certain markets where not so mature and where you unfortunately have not enough cargo to really fill it up. Therefore, we have still, some good partnerships with some of the co-loaders.

Nevertheless, we are running a network of 700-plus services. Services means port-port, direct port-port connections. On the globe. I think this is second to none. And by integrating Schenker, we got additionally, 300. So we have really leveraged that. Now what the mission still is, both in air freight and LCL, is really going to the drawing board first way thinking saying is where are our hubs? Are they still needed where they are or can we even consolidate? And I do believe we will see some leverage also on that. We have started that mission, but it's not finalized. You can well imagine that some rental contracts are taking longer to escape and what have you.

Anyway, we are really planning and simulating the second to none LCL and air freight gateway setup. Gateways, meaning consolidation of cargo. And then of course, a very, very strong setup and value prop to all our clients utilizing the road capabilities, mainly across Europe, but we also have some buckets in U.S. We have a very, very strong cooperation in Asia, near Middle East, South Africa anyway. So you could say they are one of our largest preferred partners in working closely together.

Then we target sustainable growth and of course, above the market volume growth. Well, then reality sometimes hurt. As you can see, I got also the message or the questions last night. Doing an integration, of course, there's a lot of focus, getting the mission started, getting the teams nominated, getting system, landscapes, the bridges working between the system. So I would not necessarily say the focus shifts from -- away from the client, but you have many, many other priorities and focus areas.

Gladly, we have not lost any major clients from the larger sized accounts. We have, unfortunately, also a certain set of downtrenders. As alluded to automotive, for instance, all our larger automotive clients are lagging volumes in general. I'm especially talking about the European and the U.S. manufacturers, just to name a few. And if you compare those slides, we are always following the market, and there are some peaks, and we recover during integration. There's almost a little bit more churn, not churn, but decline in volumes. Sometimes it's also risk mitigation. For certain clients, they say, hey, we will not award you more business or we will downscale. We want to see how you operate the integration, and this will bounce back.

So you can clearly see in air freight, it's, let's say, 1, 1.5, handful of clients. We also decided to divest due to yieldings. There's no real value in handling and deploying a lot of investment in human resources to handle lost files, I do believe. This is the most stupid we can do. Sometimes you need to do it, you buy -- you need to buy it in the [indiscernible] and the bidder. But in the long run, does not make sense. And after negotiation, if you find out no willingness from the counterpart to say, okay, we'll change some tariffs and turn it positive, why not then saying okay. Then for the time, being divorced. And then logically, it might have a value impact.

Ocean freight is more diversified. We, of course, worked on the client portfolio, and there are a couple of downtrenders where we have not lost the business. I do believe it's a matter of time when the business rebounds. So we are actually very satisfied with our performance. It can always be better, but satisfied. We are never satisfied in reality. So -- but we will drive that.

I can also say that the tender season extremely well for us. I think Jens and Vishal also mentioned, the tender ratio and the winning ratio, defense ratio was extremely well done. So I'm very much looking forward to it. And then, of course, you have disruption near Middle East impact where volumes have slowed down and so on. So there's many, many angles on the volume development as such.

Then yields, as explained too, we need to distinguish the rate yields. So air freight, including fuel as one part of our income stream. And then you have all the value add where you can might also say side charges. So everything else except for the rate and the fuel. The balance is a bit different in air and ocean.

And you can see it for yourself, air freight, where the largest part is actually freight rate markup, so fuel and rate, and then you have shy of 40% in value add, while in ocean freight, it's the other way around. The outlook, of course, is that we will increase over time the value-added part, which is the more stable part because the tariffs are not -- dock handling fee, customer service, custom clearance fee does not change like the air freight and the ocean freight would do.

So that is more the stable incoming part. We will drive that up over time. We will phase in more and more. Of course, we need to adhere and respect the existing clients' contracts. But over time, you can expect an increase of that. And then you have this kind of more fluctuating part of freight rates and fuels. Fuels, we cannot really influence, as you can see, but rates is, of course, power procurement, but also a little bit, the market trend, which is very much different from trade to trade.

I think air freight, we have a very stable outlook from the future, also taking into consideration that the capacity is not really coming into the market. Ocean freight is a little trending down. There's -- I would say it will also stabilize and bottom out if you compare the lifeline from 2018, 2019, actually, there's still a little bit of a buffer on the ocean freight yields. But again, with our strong network and our procurement teams engaged, we will be well geared and driving up the value-added part is another important topic to us.

Then Tango. Yes, don't forget, Tango works nowadays already as a freight forwarding system. You can easily manage all air freight and ocean freight bookings. We do expect leverage after some more investment in the technology. It's future-proof, scalable. It also allow embedding certain AI tools. It fits well in the EDP setup. So I do believe this will create a value, and it gives us the possibility to create our own USP. Not depending on any third vendor, don't get me wrong. The CargoWise has been a very, very strong partner to us, a lifeline. But I think after 15 years when the first rollout was done with CargoWise actually, perhaps also time to change a little bit gears. And we are getting a good system in our hands to further develop and enhance with the knowledge of both legacy Schenker and DSV.

So we are creating a swing tank. We will take both of -- the best of both. We are repositioning some investments into further enhancing Tango to really scale it and to make it even more productive than CargoWise was ever was. So at least this is a mission I got from Jens and my boss, you need to create the strongest transportation management system in NC. So I gladly had said, yes, this is a nice challenge. So there's no doubt this will create a lot of value going forward. And there was -- we are handling 25% of our business nowadays on Tango. So it works, right?

I'm running out of time. I know, I will speed up. AI use cases, virtual operator customer service is in the planning, is in the making. I think Brian, you mentioned angry clients are reaching out, where is the packing list. No, I do not want to look in myDSV. This can all be handled in AI, providing firsthand customer service feedback. What is actually under production is the booking via AI, we have managed 300 plus -- 300,000 bookings, meaning receiving bookings, all angles. Not API and not EDI, where in total, we have 55%, but still, 45% is manual. So -- and these will all be directed in booking, booking enricher. Putting additional data to it, feed into DMS so that the operator does not need to do this kind of silly manual data keying in.

And then, of course, very important, we are working on spot -- spot quotation enhancements. We're receiving about 3 million, 3.5 million spot quotations a year. So you can imagine how much persons are busy in creating spot quotations. We are deploying a tool. And I can tell you, this is second to none. And so we can speed up all the processes and on spot, reply to clients within 30 seconds. I have a small film on that.

[Presentation]

Isn't that cool? I like it very much. And the good thing is once the client accepts, we can transfer that as a booking. So we have the booking in our system, and then here we go. So very exciting times and a good way of showcasing how AI can work.

Key takeaways. Schenker, global market position, leading, we will defend that. Count on Air & Sea. Extensive own controlled LCL and air freight network, leveraging the needs of our clients and creating sustainable solutions. Tango integration rollout will create another very valuable USP for us in the midterm. And indeed, we have a rollout plan already. It's not signed off, but I can tell it to you. So there always need to be an end date to certain action we do pull through. And then use case, how to embed AI to enhance and enrich the day-to-day work.

Thank you very much. Now I hand over to Helmut.

Frank took you up in the sky, high, deep to the sea. Let us come back to solid ground, and let's talk about growth in our division. There's a bright agenda. Even more slides have seen, we passed 100. I make it very simple and structured for you.

We are talking and I'm talking mainly about the best of two worlds. That is what is coming from the legacies, DSV and Schenker. That is all about our business case and the synergies we are going for. Secondly, I'm talking about a star by definition. That is our TMS, which is the key enabler for us in terms of harmonizing processes. It's also a key enabler for us in terms of going into new technology and AI.

But let's set the scene, who we are. We are the largest Road division by size and [ division ]. Look at the revenue, look at the 50,000 trucks we have on the road each and every day. Driving through Denmark is for me really a pleasure because you see in front of your blue, behind of your blue and sometimes crossing the bridge and some guys are smiling here, obviously, Danish, that is unbelievable.

We are doing 50 million of shipments a year. We are doing that in our 2 products when it comes to groupage and also to direct. And I will explain to them later on, what does that mean in terms of our production. And I was hiding even another 50 million because we are also in the parcel business, very much in the Nordics, but also in South Africa, where we are the leading force.

We're doing that in more than 50 countries with more than 40,000 dedicated people. And being a Danish company, being a Scandinavian company, that is important for us. It's sustainability, even knowing and being in a hard carbon industry. What I released now -- and look at not at me, look at the slide on the right side, it is the first time we are releasing our product split. We are talking about revenues on the left side, it's our direct business, which is by nature, bigger in terms of the average shipment sizes. That's also why the revenue is higher.

We have very good balance also on the groupage side with 45%, talking about the whole portfolio. Like Frank, you see that we are a real global player, having in mind that DSV Road was very much a European player. We are putting now our forces together, and that is also what we have done already with the Schenker legacy, extremely strong in Asia Pacific and with the combined volumes we are doing in EMEA and also Americas.

The beauty of that is -- and Frank mentioned that -- we are getting critical mass without having any sales rep on the road outside of Europe because of the volumes we are getting from Air & Sea, my biggest customer, and also Contract Logistics. So there, we are getting critical mass to offer to the market, services. And just to give you one example, the hyperscalers are in our portfolios, and we are doing businesses for them in all these regions also outside Europe.

What is important to say? When I was coming into these stores the very first time a bit more than a year ago, we were sitting in the boardroom and talking about the customer portfolio, putting the customers and doing the segmentations of legacy Schenker and DSV together. That was, for me, mind-blowing. It was is unbelievable on what kind of pressure we are sitting and we are having. And that makes us also very positive in terms of growing outside of Europe because we have the access to the markets, and we have also access to these customers worldwide. These are the global ones. These are very much also the Europeans. They are relying on us, which are prominent in our customer base.

Let's talk about the market to set the scene before we are going further into the value creation. We are in a modest market environment. This is very clear. The growth rates in Europe are not that much exciting. That is also why our strategy is in Road to grow outside of Europe. Bigger markets, more agile markets. Yes, a modest market means also excess of capacity. It means also that we have a pressure on the rates. That is the case. It is not an easy ride. And at the same time, we are doing an integration, moving quite big building blocks together.

We have also some structural challenges when it comes to driver and a resource, which is in the meantime, very limited. Not a problem today, but it's structural, as I said, and the answer is very clear. Not always technology, but in this case, definitely technology. And the proof you see outside with this Volvo truck, which is already in the U.S., the American version, driving commercially on one route in Texas.

We are, like DSV as an enterprise, in a very fragmented market when we are talking about our and my division. We are at around 4% to 5%, and we have intense competition and very much also local competition. On the way forward, I see the advantage definitely on our size. It is a scale business. Size matters, but it's also a business where investments and the means are important on the way forward to develop to really take an uplift and improve when it comes to AI and also technology. And I believe future will tell, if I'm right, that the local ones will have also some challenges to really keep up the pace in terms of investing the means, what they need to compete with the bigger ones in our industry.

Size matters, definitely. And size matters, and we are stronger than ever when we are talking about DSV growth. We are the leading European force. I mentioned it already, 4% to 5% market share. And that is important, and you can also look into our peers' pages and sites. We are 3x bigger than the second on the list.

We are a European player with global reach, important. And on the right side, you see what our integrated network really means and what kind of advantages we have. And it's a bit the other way around that Frank showed in terms of the size, Schenker versus DSV, DSV legacy. And here, we're talking just about the international business in Europe and the linehauls we are driving and the connections in Europe. Schenker is coming in, the Schenker legacy with 2.5x more direct departures each and every day. That is counting up to 1,200 daily linehauls for our international business. That is second to none, and that is definitely what I could call a competitive advantage.

Size matters, scale matters in this business. And just to give you one point, if you are bundling our volumes, that means also that we have higher departures. And we're coming also to the final end destination closer than everybody else, and that is also an advantage for our customers.

Quite a busy slide. What is it all about? We are building nothing else than a scalable, cost-efficient platform for growth. What is our internal motto? It is here in the bottom. We do not want to be only the biggest one. We want really to set the industry standards. That is important to stay ahead and stay above the curve.

I was talking very much about expanding our reach when it comes to other regions and markets, which are more agile and more on the growth path in Americas and APAC and EMEA. A good example is the crisis in the Middle East, where Road was from one day to the other, the fallback solution or now it's even for many flows, the #1 solutions in that part of the world.

We are doing a full service product catalog. And that was for me, important in the beginning already and setting the priorities to have a product service catalog, which is ready to go. Why? Because if you're driving such a big network, it is essential that you are very clear, what you are offering to the market and to our customers and what you have to produce in your production machine. And that is also different to many other businesses we are producing ourselves.

And I still have the pictures in mind. We already have done that last year in July when I was on holiday with my family in Southern France, the kids and the wife was at the beach, and I was doing and finalizing with the team, our product and service catalog. So we are setting priorities, and it's not everything done in the last minute. That is important that we have in this large integration, this big process, we are moving forward, having things under control.

Control, control tower and also SMEs. It is important to understand that road is different in terms of the customer portfolio than all the other divisions. And that is quite similar in, I would say, also with our peers. We have 25% big accounts, V&G accounts, which we are following worldwide and where we have the business on the control tower setup. 75% is on SMEs. And this 25%, we are doing very much in the control towers. I'm not going into details. Brian showed that with a very good example.

And it was for me also when I was driving the first time towards, this was extremely impressive in terms of the whole infrastructure and the size of these terminals, but it was even more impressive when the team showed me what DSV is doing in the control towers. That is really different and second to none. And I can tell that being with Schenker in more than 30 years, we had a lot of control towers. We had a lot of good relationships with our customers, but that, we did not have in place. And that is really a power, and it's really powerful on our way forward to grow our business in Road, but not only.

On the SME part, we learned from other industries, we are not pushing our customers into the digital channel. We see then more, a pull effect. Customers by themselves are going to our platform and keying in and getting instant quoting and getting all the services. It is very much built or 100% built on standards, but also the small and medium-sized customer can pick and choose from a menu and have standard and tailor-made solution.

And the proof was on Monday when a friend was texting me, he's doing a bit of a wine distribution in Vienna. And he said, Helmut, thanks. Pellet was from France in time delivered. And I was very astonished and surprised because I was always booking on the Schenker platform. Now everything is in blue. It is all DSV now. So the proof is done. This is also executed by this week.

The magic comes with the two last points. We are consolidating a big network, and we're increasing efficiency and, of course, increasing utilization. That is done on a very high volume, and now it comes. For the very first time, we announced that we are reducing our footprint in Road substantially. That gives us a lot of cost advantages and takes out a lot of complexity. That is a part of our business case. We are going down from 400 terminals when we count last year May to 280 terminals. I will show you then also examples later on, what does that mean for us. I wouldn't say that means to the world because it's in Europe, but it means a lot. If we just have in mind that our cost base and how we are doing each and every day, our networks with the linehauls and the CoDi trucks. That is massive.

At the same time, STAR comes in where we're harmonizing our processes. That is then also coming a bit later. But what also on the cost side is essential, and Jesper mentioned that already. We are decommissioning more than 25 systems. And that is really a pain when we are doing the integrations on our way forward. So we have to be very clear before we're doing the next merger acquisitions, we have that in place because that is a much easier combined, one TMS with the EDP, but that is doing the magic big times.

I was not here in 2022 when the last Capital Market Day was. I think most of you -- some of you were here, but I do not want to hide away. What we promised in 2022, what we are delivering today. What I can say, I think it's very positive, not so exciting. Still, the initiatives, the strategy remains the same.

It's in Road about one TMS. It's about one product and service catalog, which is important for the customers and how we produce our services, and of course, the network. At that time, you can anyway see it is commenced, rollout, fragmented in terms of the product and service catalog. And the network was under establishment. Very clear because DSV in Road was part of an alliance and had not an own fully fledged network. Today, talking about STAR, the equivalent of 50% of that shipments of legacy DSV is on STAR.

Talking about product and service catalogs, [indiscernible], it's done. Network, full-fledged European network. We are doing most and the best services with most of the CoDI trucks, most of the linehauls and unmatched by each and everybody in the market.

On our way, 2030, of course, we want to be full with 100% on our TMS and STAR. We further develop and innovate, of course, our service catalog. We will not stand still, also very clear, and we will optimize and rightsize even further. So what is in the future, in the near future from 400 to 280, we still think if we're doing the right things and we will do, then there's a further optimization possible.

I was asked also to explain a bit how do we distinct between our 2 products. We have a product organization in Road like Air & Sea has -- with Air & Sea and we have it with groupage and direct. And I can only imagine if somebody is listening to us outside Europe, he or she will ask what the hell do they mean with groupage. Groupage is very much a European setup in a European product, and it comes because of the characteristics of our industry in Europe. It is everything between or beyond above a parcel up to 400 -- 500 kilos, and we are talking about direct part load and the full load, which is then from 2,500 kilos up to a full load.

What is the characteristics of groupage? It is a network business. We are collecting and delivering each and every day, hundreds thousands of shipments from various consignees and delivering that to our consignees in a consolidated way. And we are doing that always via terminals. And a certain terminal infrastructure is paramount for us because it's also an entry barrier for most of the guys which are not in the business, or only in a limited size. It is extremely difficult to build that naturally because the big global networks, they are more or less done and established. Schenker was the last one on that size which was on the market and not already in one of the listed companies.

The magic comes also in the future with 1,500 international lines with 6,500 domestic lines we are doing. We are putting -- consolidating these volumes together. And that means also that we have an advantage. We are not going anymore via hubs. We are not going anymore via platforms, however you want to call them. We are going to a very far extent, direct, which is a competitive advantage also in terms of reducing our lead times, which is benefit to the customers.

That is very much coming the best of two worlds. I mentioned that from Schenker, but not only. I show you also the legacy numbers of DSV and Schenker. And what is really best of class, I would say, in our industry, that is coming from the blue side, from the DSV side. When it goes to direct drops, trucks and round trips, we are doing there, more than 10,000 trucks a day. And also explaining that, it's a business where we are doing here from one consignee to -- consignor to the consignee, always on wheels, we are not touching in that product terminal. And it's very exciting and also in terms of much more profitable because it's a bit complex when we are doing collections on wheels from more than one consignor and deliveries to more than one consignor. That is our LCL setup.

I promised to show you our network. And I have to excuse myself already because on the right side, that is an illustrative map. AI says it's 162 dots. You know that we have 400 dots, we will go to 280 dots, and I was mentioning the 6,500 linehauls for domestic and 1,500 linehauls on international. If you would have pictured all the linehauls and all the depth dots on Europe, you could not see the European map anymore. That is the size of our network we are doing each and every day.

What are the 3 strategic pillars? It is the consolidation. I mentioned that to drive efficiency and also take out costs, rightsizing in the much nicer wording, and we have to improve with that, our ROIC. We are controlling key infrastructure that is in the future, these 280 terminals. That is paramount and important for us to control really the network, but also to control what we have in customer context and providing our services.

On the way forward, we will reduce our risk here also for the remote areas, and we will further outsource here some of the remote branches and terminals. We are using AI, and I'll show you afterwards an example, better matching the capacity and the volumes. The outcome of that is very clear. I have to look at my cheat sheet. Better utilization, we are reducing the fixed cost. We are lightening our balance sheet, and we are controlling 95% of our business. And synergies between the 2 products because overflows and some of the lines and long distances are doing by direct and in the future setup. Also, direct will be responsible for setting the scene and organizing all the linehauls we are doing in terms of -- and also including the procurement.

Our STAR, one TMS systems and I showed you in terms of the Capital Market Day, what we are doing already now. We have 20% of the shipments and the volumes currently on STAR. There was a question to Jesper in terms of the countries. We are not anymore counting the countries. It is more about the transactions we're having on STAR. It's 20%, and we will double that also this year.

So first phase, rolling out STAR until 2028, we want to be on a good place, have that really done because it's so important for us. In the next phase, we want to harvest the efficiency gains. That is where we are getting the transparency with one systems, one file system, having an increased productivity, and finally, of course, can scale much easier than what we are doing today. And for the future, it's also very clear. We want to gain in terms of productivity and hold on [indiscernible]. STAR enables us having transparency through one system and database and is the foundation, and we are coming to AI.

When others are writing very nice white papers, we are not so good in producing white papers. But obviously, it has an effect when we are looking into the share prices and the market. What we are really good in, and we are doing this engineering each and every day. So we are producing that by ourselves with our intelligence, with our people. And you see here on the right side, the number of CoDi trucks that are collection and delivery trucks, which are doing the first and the last mile each and every day in each and every terminal.

And the color code on the left-hand says you the trucks. It says you -- when the gray color, for instance, is the truck has arrived at the terminal, the truck is loaded. The truck is on its way, doing collection, doing deliveries and coming back to the terminals. And cutting a long story short, we are optimizing here each and every day in each and every terminal, the number of trucks. What is the aim? To having more stops and more shipments on a truck. And having this that, of course, economies of scales getting out with a lower cost base per truck and per transaction.

That is what we are doing for first and last miles, but not only. Still also have in mind when DSV after acquiring Schenker was in Frankfurt and looking at our screen, where you see all the moving docks that we are steering the whole network. So there is a lot of technology already in our division. There is a lot of technology we are already using. There is nothing we have to wait for. Of course, what I say many times, we need STAR to really utilize all the synergies and benefiting from AI and tech.

But we are not waiting, and I'm not repeating everything what anyway was already said by Frank. Spot quote is for us, essential. Just having in mind, 75% SME business. And the C and D accounts, they are going by themselves on the platform. And the easier it is on this platform, the better the utilization is and the more successful. It's about speed and not very much about price. We have already 50% that you're talking about the former DSV portfolio on spot quoting. And I don't have to tell you a lot because it was said already in terms of the EDP, what we are expecting in terms of the booking domain. And of course, that comes also to customer service.

For us, the touch points with the customers are important. We are investing here also. We are educating our people, and that is in the integration, extremely important that we have here, all eyes and all hands on deck to be always with the best information when it comes to quite a complex situation and moving 2 companies together and then working on different several systems.

Coming to the end. We are the leading force when it comes to Europe with global reach. We have a scalable STAR TMS platform which enables us on our way forward to further optimize this AI and technology. We are optimizing our network and our infrastructure, leading definitely to a structural lower cost base, which gives us in the end of the day, what I mean for with my team, the best cost ratio per shipment. And we have a clear path on our way forward to be profitable and enlarge and increase our margins.

Thanks for your attention. Maciej, let's talk about the engineering when it comes to Contract Logistics.

Good afternoon. My part is about the logistics footprint. So I have a pleasure to guide you through some key takeaways and elements from the Contract Logistics division and what we are doing inside of those warehouses that you probably seen during the way here and some elements that we do inside. So the plan and agenda, key facts about our business, market perspective, what we are trying to create as a strategic approach and some network services, what we do to scale our operations. And finally, aforementioned and many times mentioned, AI.

Those are the main figures of our division. So we are operating on 17 million square meters, massive scale globally, massive operations. And sometimes, if you imagine how many locations we have and how many square fields of -- or football fields we have, this is really, really impressive. I have a pleasure to cooperate with over 60,000 colleagues and the teams that are running the business. And split by region is also connected with what we were doing historically. So we are a company that has grown from Europe, and our share in Europe is still the largest, but we are very, very much developing in other markets, especially Schenker, but also technology sector that is just pushing our divisions forward is something that changes this shift for the North America and APAC.

Verticals, something that's also worth to mention that our shift in the portfolio of the products has a bit changed because we have significant share in the consumer, but the technology and cloud is growing significantly. When I was looking back some maybe 10 years ago, I had never thought that I will be in the middle of the technology and cloud game in logistics because we are thinking, okay, we are moving some pallets, boxes, something that is may be very obvious. But suddenly, we are in the middle of the technology game, in the middle of the cloud computing journey. So this is something that we spend a lot of time on, and I will explain later how we develop this one.

Gross profit, you've seen in all the reports, those are our 2025 numbers. So this is, I assume, clear. Stronger than ever with Schenker. What has happened after acquisition? Main element is what I've mentioned, strengthening our position in those 2 markets that boosted our presence. But I think it's something that we also experienced during the historical M&As. We were always getting some more business in some continents or getting some expertise, which was bringing us to the broader scale of customers, broader scale of locations.

Expertise in verticals, technology. This is something that we are right now spending a lot of time on. And Schenker was already starting this journey, and we've boosted it with our approach and also something that is less on this list is the approach to the large customers. We've decided to create some sort of framework that will support those massive hyperscalers, but not only, but all the customers that are expecting the global approach, global scale and allowing them to be serviced in one way globally.

If you imagine the customer that is thinking about various locations on the map and sometimes like hyperscalers is thinking, okay, we need to follow this trend or we have the fantastic location or we have the access to the power grid in this location, they would like to have the service immediately. It's not planning, it's not the creation of some fancy strategies. We need to be there where the customers need us. And the only element that will allow us to do it is to have a structure to have a system, to have the one standard that will allow us to get the service up and running.

About the market, it's a very -- maybe general overview how the market is shifting, saying that this is mid-single-digit growth, but you know how the market is developing. Contract Logistics is at a very stable pace, and we are getting more and more every year in demand. What is interesting is this resilience. Recently, we had a very difficult moment in last 2, 3 years that we needed to service the markets where we're impacted by various factors, recent developments in some areas around the globe.

And I'm super proud by the teams that were constantly delivering the service to our customers. So there were no disruptions, even though you know that sometimes buildings are quite obvious points to be attacked. And we are supporting the customers, not only from this perspective, but also warehouses are the locations that the goods are waiting for the customer. So we were ready. We were providing the service continuously, and this is a huge credit also to our colleagues in the organization.

Consolidation on the market is happening, it's an obvious element. So not only the M&As, but also consolidation to larger hubs. This is something that we see on the market. And finally, a very interesting topic. I was also having some questions even today, what's going on with the trends, with the journey. The complexity of the solutions is getting more and more. So customers are moving more of their needs for the production, for some services towards the companies like DSV just to make configurations, just to have a final assembly. And this is something that I see as also element that is changing throughout the years.

We enable simplicity. And this is very important because there are 2 different views. Contract Logistics is a very sophisticated service, even if you think that it's just putting the pallets on the racks. But we are doing tons of transactions. We have multiple connections with our customers. If you imagine the automotive production, for example, it requires tons of messages exchanged during the course of the day to monitor the availability of the product, but also the elements that are connecting multiple stakeholders. So you have production, you have customers, you have cutoffs, you have elements that are triggering the complexity. And we would like to create a very simple environment for the growth of the customers.

So the customers can get Simple setup, one system, one platform, they can do it everywhere globally, and this is what the customers expect from us. This is the element that we -- I will explore on the second half of the presentation. But we would like to grow organically with all the verticals, and we would like to fulfill those sophisticated customer requirements.

So one of the key elements is to optimize the footprint. We are not necessarily looking for the multiple locations and growing with the scale just for the footprint. We would like to look for the locations that will be the most effective. They will be bringing us proper ROIC, EBIT, and just to make sure that we are also consolidating all the projects under one roof. This is our strategy. And of course, next element is consolidation of the IT. Jesper was mentioning the counting to one. And this is the journey that we also have with warehousing operations. If we have one platform, one system and the customer can think about us as a partner that will globally cover all the needs and can easily deploy the operations anywhere in the world. This is where we want to -- we can win, and this is where we are currently really heavily benefiting from this approach.

Aforementioned hyperscalers, we are having hundreds literally of operations for those customers globally. And only thanks to one standard, one -- and also approach to the customers. So taking care in the same way, having the same experience, having the same quality approach, gives those customers confidence that if they would like to have new projects, they will give it to us. So those are extremely important elements. And AI as a cherry on the top to boost our effectiveness and element is an obvious supporter for this journey.

Coming back to hyperscalers. This is a very interesting sector that is growing with tech. You can call it tech, you can call it cloud. It grows in an unprecedented pace. And this is something that we are really proud to be a leader in the industry to support all those hyperscalers globally with the warehousing operations with very sophisticated services. It's not just a pure storage, but also getting in touch with data centers that they do operate. So this is our -- also huge benefit and contributor to our growth.

What's important is that we do not want to focus on hyperscalers only, we have other sectors and other verticals. So we have aerospace and defense. I think the obvious candidate right now. Unfortunately, that is also growing with the demand and opportunities with EVs and automotive sector that is also shifting a bit recently. But the main point is the connection with the customers.

Contract Logistics creates the stickiness. We are inside the processes. We are close. We are long-term runners. We are creating the partnerships. And it's really important for the customers that when they relocate the goods or when they put the goods in the facility of the 3PL, they are well taken care of, and this is what we are focusing on. And this is why we have created something that we call global customer management.

So we have created a team of experts that will -- that is extremely focused on particular accounts. So we have selected some top customers of our division that they have special care. They have teams that are responsible for implementations. There are teams responsible for engineering. There are teams responsible for even compliance and contractual aspects. And thanks to that, this team is able to understand the customer needs, address them very fast. And as you can see, something that I'm very proud of in point number two, we have -- at the beginning of the year, we're able to launch the 100,000 square meter facility in 8 weeks, something that's in the normal contract logistics environment is -- sounds like a bit irrational, but it was the need, it was the requirement. And thanks to those elements, system standards and the proper customer approach, we were able to deliver the solution for our customer.

Then the consistency, I've touched this one also before that the customers do not want to engage in local discussions with particular countries. The dynamics are so high that they would like to be sure that they have the same service everywhere. And this is what we provide. So this team is taking care of also visibility and global exposure and global programs that those customers do require. And we are very proud that the team is working on all those elements so effectively.

Here, you can see the global footprint and those 17 million of square meters are current state. And you can see on the left side -- on the right side that we are trying to find the best one of those. So we are reviewing the portfolio and trying to find where the synergies comes and where can we consolidate the projects under one roof. Technology is also allowing us to do it.

So we can sometimes put the goods in the much higher facilities. 15 years ago, the buildings were around 10 meters high. Now if you put the goods in 15-meter high warehouse, you can put more pallets. You can use the automation that has also become much more effective. And all those elements are leading to the plan that I have with my team, and we are basically consolidating around 2 million square meters of this 17 million, just to make sure that we are generating the most effective ROIC, that we are generating the most effective EBIT results.

But it doesn't mean that this number will drop. The magnitude of the growth is so fast that the lower part is showing that we will be adding a lot to the portfolio. It will be just a new -- purely new demand coming from the customers. We see it right now. This project launched in 8 weeks was just an example. But I think this year, we have launched, I would say, hundreds of thousands of operations for multiple customers that are just adding more to our portfolio. And in the same time, we need to clean up those that maybe are not contributing that well in the overall plan.

Consolidation of IT. This is not only the element connected with the infrastructure and scaling down, but also to make one platform for the customers. Jesper was mentioning this one, Helmut was mentioning this one and also Frank was telling a lot about the systems. For us, one of the elements of the M&As is obviously the additional WMS systems or warehouse management systems that are added to the entire portfolio. And we would like to cut them. And this is the plan. You can see that we have already decommissioned 15 systems, and we are planning to decommission 25%, and this is the next step.

So we will be lowering the number of systems and also making sure that the one that will be operating for our customers will have one standard. This will give us -- another advantage that we will be able to easily link all the new technologies. So I don't want to mention again AI, but this will be exactly this element that if you have one platform, customers can benefit globally from one system, one platform and all the technologies that are happening around it. And the scalability is a key that we have one system, allowing the customers to operate everywhere, and this will be the solid foundation for AI and also IT cost base.

Some examples for the AI implementations that we have in contract logistics. So we have autonomous drones. This is not the one, this is the transport one. And I'm also very proud of those drones because we sometimes ship the goods from our warehouse to the hospitals, which when you look at the business from the perspective of typical transactions, sometimes we are really saving lives with our drones. But autonomous drones are the ones that we are using globally for the inventory counting.

So if you can imagine those millions of square meters with the goods before some persons were spending hours on counting each pallet, making some notes and verifying what's there on the stock. Right now, we have drones. We have deployed this in multiple locations. So we send them out at night. They are flying, counting all the inventory and also creating reports for the customers what's available and what's not.

Then we have customer service management, typical element that probably you are all using contacting some hot lines or some contact points that is responding, where is my shipment, what is the status of the shipment. But the last one is very interesting that in Contract Logistics, we are focusing on planning of the resources. So you perfectly know that in warehouse resources are extremely important to be aligned with the volumes that are flowing. So we are predicting not only based on the historical data, but also external factors, macroeconomical factors, what's going on with the flow of the goods, how those goods will be required and in what way and how can we plan it more effectively. So our colleague, AI is also helping us with this one significantly.

And key takeaways Contract Logistics is a super strong platform for organic growth. We are supporting other divisions also. You've heard the stories from Helmut and Frank, how the goods are sometimes entering our warehouses, how the goods are leaving our warehouses. And of course, we are the point where this collection or delivery is happening.

Global approach to the customers that are from multiple sectors and most recent enormous development on the hyperscalers.

Consolidation, that is a must that will bring us much more effective results and bring us much more focus on what's important and how to grow the business even further.

And IT streamlining, something that will make our business even more scalable and easy to access globally for our customers.

Thank you very much. And now the part for Q&A. So...

Super. Nearly on time. We'll catch up. Again, if there's any questions online, feel free to write them. But else, we start here from the scene. Lars? First one.

Lars Heindorff from Nordea. A question for Frank. It's -- you talked a lot about the share of LCL and the development there. Could you just give us a feel for what has been the trajectory and in the past couple of years? And what do you expect -- I mean, the share of LCL will continue to grow so given the initiatives that you have started?

So we started to focus on LCL 10 years ago, operating our first CFSs and consolidating our LCL cargo in own boxes. I think we have come a long way. And now we got a positive injection from the Schenker volumes, which almost doubled the size of all our transaction in own boxes. It is an essential part of the Ocean Freight product, right? It contributes nicely to the GP because in average, you can count 7 to 12 shipments per console box and then you can multiply with the GP margin. It gives you a higher revenue and income stream compared to full container load. So actually, the yields are much more prominent and higher.

Also with the change in pattern of buying things, there's a lot of more small-sized shipments moving around. So I think the outlook is very prominent. It's, let me say, I don't have the exact number, but I would say it's 12%, 13% of the overall ocean freight contribution. So you could say it's only a minor part, but with the outlook, a promising outlook because we will outperform on that one. It's based on the foundation of a very widespread network. If you can offer that, then you will also have a higher way of winning additional business into those boxes.

Patrick, down there.

Patrick Creuset, Goldman Sachs. Brian, with your 40 years' experience, you know what's coming. When thinking about the disruptive potential of AI on a scale 0 to 10, how worried or unworried are you? And why? And as an add-on, if someone gave you a wonderful tech platform and unlimited CapEx budget, how long would it take to replicate PSC's physical networks?

So we have to decide what is [indiscernible], what is 10. But in principle, the disruption factor at this moment in time, we do not deem very high. If you say 1 to 10, let's give it a 2, which is, for me, very low.

Your second part of your question was how long term does it take to build a network. So we have present in 30 countries. We have infrastructure, which is 17 million square meters plus several CFS stations and 450 terminals, which you want to reduce to 280. I said to you yesterday and you wanted it out here. So I would have said at least 10 years, it will take to build something like this, even though you had unlimited CapEx. It's just my personal guess, of course. It is very, very difficult to build an infrastructure like what we have achieved to have.

Yes. James?

It's James Hollins from BNP Paribas. A question for you, Frank. It's interesting what you were talking about barely being able to focus on market share gains when you're focusing on integration. Did I read that right? And if I did, is the market share gains already coming from H2 this year? Is it the 2027 tender season that gets a bit more exciting on that growth side? And while I have you, maybe your reaction to delivering above 55% conversion ratio by 2030.

I should start with the conversion ratio first. This is one of the leading KPIs always have driven us to improvements. It's based, as Jens alluded to, on a framework we have developed to calculate major impacts in our business. And I do believe it's somehow ambitious, but achievable, of course. We do not want to lose any of our operators where they all need to pull through and believe in it.

With AI and reorganization really closing down the integration work, also consolidating all activities, driving loading factors up, we will be in a good spot to do so. But of course, the market as such also takes a prominent role in that. So where are the overall markets heading up, is there a slack season in ocean freight where the volumes even further drop, meaning also the rates even take a lower level. You have listened into adidas, they are benefiting from relatively low rates. They might even drop further. So it's a bit of the balance we need to find between that income and the freight rate markup. But I do believe we are well geared to pull through and to achieve the 55% by 2030.

The first question you had was on the market shares. I think always in an integration, you run with the job first, really getting the teams combined to create one set of service offering, which takes a lot of energy from all the managers and all involved parties. And of course, the competitors necessarily also showing who are now hunt for the business of DSV. Okay.

We have seen this and observed this. Luckily, we could, in the highest degree, defend our business. Of course, there are certain down trend, as I mentioned that. Also, we have divested in certain business. So I do believe this will turn into positive soon. So I have a very good outlook. And I'm -- it's not being arrogant, but I have a very strong team in place, a very strong service catalog, a very strong execution level, which then in the end counts when we are faced with disruptions like the near Middle East crisis and what have you. So we'll do it.

Cristian Nedelcu from UBS. Can I ask you, Frank, two quick ones. In the first quarter, the gross profit is up DKK 1.7 billion year-over-year. There are some synergies, but the EBIT is down DKK 300 million year-over-year. Can you explain a bit more why do we have this development? And secondly, if you allow me, the gross profit is around DKK 34 billion, DKK 35 billion this year. How do you think about 2030? Where is that number? You talked about growing VAS. So can you elaborate a bit more, please?

Well, in all the integration work, you have a certain delay in realizing the cost savings. I think in the Q1 reporting, you got all the transparency what has happened and whatnot in Q1. So we are on a good mission of integration. I think the NC division also proved that we are running a little bit in front of our own initial plans. We are reducing and adjusting our cost structure, while there's always a little delay until really drops and has been obvious in the P&L. And therefore, I think we'll -- somebody talked about backloaded.

I would not say backloaded, but it will come over the year because we are executing on our synergy plan. So I have no doubt that we'll meet our own target. Of course, the market is also out there. As I alluded to, the Middle East crisis, volumes are down. And in the Middle East out of a sudden, you have planned with and so on. So there are many, many angles to the business. So it's not that black and white. Overall, we can balance it out, but we have still a mission to accomplish during the year. So I'm quite positive and have a good outlook.

A question to you, Helmut, coming from about consolidation network. What risk of customer losses should we assume from reducing the network by almost 1/3?

Look, that is a difficult question. Of course, we all wish for the best and that we are not losing customers. What Frank was already mentioned and that we are seeing not only in A&C that our existing customer base is down trending. So it's not even about losing customers. But also being very frank here, this year, especially in the first couple of months when we were starting in a certain peak, especially with the big countries, it was not a walk in a park. So we all know and we have the same calendar, but this winter was stronger than ever, and we know from the business that strong winter, especially in the group network coming in with not a high demand. So volumes are lower.

And then in big winter times, you have, of course, delays in terms of many parts of the network. For instance, in France, we closed for a couple of days during the whole day, the highways, that has an impact on us. Luckily, in France, we were not going live. We were just last month going live, but we were going live in January in Germany. That is our single biggest country organization with 43 terminals. That was a big challenge.

And of course, on the way forward, if you're doing these big steps, then there will be the one or other customers, which says maybe I'm going somewhere else, then we are deeply connecting the networks and moving terminals and also rolling out new systems that we cannot avoid, but we are doing everything. And of course, we are learning on our way forward each and every day. For instance, I did mention that I mentioned it now, we were going live with Star in the U.K. in very big terminals on Monday, and things are working out quite well.

Good to hear. Ulrik?

Ulrik Bak, Danske Bank. Just a question on the footprint reduction in Road. What will that mean for your invested capital? And if I may, also for Contract Logistics, you also mentioned something about consolidating, but also adding some new ones. So what will the net impact be there?

What I can tell you now for Road that is according to the business case when we are going down from 400 and 280 AT terminals, I would say, being careful now, but that has additional potential. You have seen our numbers in Q1, and you will see very soon when Mike is coming on the stage what we have on our figures in terms of the conversion rate and the whole and then you can do your math.

And from Contract Logistics side, you can see also the development of the ROIC parameters that I'm just showing how the consolidation is bringing some effects compared to last year in the results. So this is the trend, I would say.

Kristian?

I think it's a question for all the gentlemen -- sorry, Kristian Godiksen, SEB. Just on -- you all mentioned all these efficiency gains from AI. Just wondering on your comfortable level on not this ending up to clients, both from your side and competitors in terms of pricing.

What was the last one? I'm hardly to hear because acoustic.

All the AI efficiency gains, just to worry on not being -- that not being passed on, on pricing to customers.

I can...

Will you start, Brian?

I can answer this. Of course, if everybody were able to do this at the same pace and have the same advantages, some of it will be -- some competitiveness will be taken away. I think we explained earlier today that we feel that we're in a reasonably better conditions than some of our competitors to be able to harvest these gains quicker. So at this moment in time, I would say that we are reasonably comfortable that there will not be a large erosion in the turnover of the DP. Then I will just tip into what Helmut said before. So those -- the 1/3 of the terminals, which are going from 400 and something to 280 is largely duplicated terminals. Meaning in principle that we're serving the same customer base from the same -- from these terminals. It is not that we are going away from some areas. So I would have said that the question is that we do not believe that a lot of customers will leave because of the reduction.

I think the last one. I think there. Yes.

Alex Irving from Bernstein. Two-parter for Helmut, please. So you talked in your presentation about the advantage of scale in road a couple of times. Now up until now, Air & Sea has been the main consolidation story, M&A story for DSV. Is there an opportunity in road? Is there a lot that's worth buying in this fragmented market? Or does your growth have to be more organic?

Second part of the question, you talked about a 35% plus conversion margin for 2030. There's clearly an underlying business mix change between full truckload, LTL and groupage. What does that feel like on an EBIT margin basis, please?

The second one is easy to answer. It's what I already answered. Yes. So our first Q1 results, and you will hear very soon from Michael what our conversion rate will look like. And Jens, anyway, you mentioned that it is going towards 35%. So you can do your math. What was the first one? Acoustic from my side is very bad. M&A opportunities.

M&A in growth. I think worth buying [indiscernible]

Look, Jens also tackled that when he said it is, of course, our ambition that is the muscle DSV has trained for many, many years go back in history. And I think it's an outcome and very logical that the Schenker deal will what I know, not be the last one. And I mentioned that also that counts for DSV, but also in the Road division. We are talking about the market leading in Europe and have a market share of 4% to 5%. So there are not a lot big ones anymore out there. I do not know what the strategy of Jens and the group is, and I cannot answer that. But definitely, and I mentioned that various times in my presentation, we need star. We need one TMS where we have the transparency that we get the productivity and then we can scale. What we are doing now is heavy lifting. Yes.

I think we'll stop there. A short break. We'll be back 35. So some refreshments over there.

[Break]

So hello. It's time now. Guys get back. Yes. Now we are up for the final presentation on finance before we, of course, go to closing remarks. And then, of course, there will be some opportunities afterwards, 0.5 hour where you can, of course, also have a chit chat with the presenters who will be here. But now we will do the financing stuff. And to that, I would like to introduce our CFO, Michael Ebbe, on stage. Michael?

That was a quick video this time. Okay. Thank you. Good to see you all again, and you've made it so far. This is the last presentation before, as Stig mentioned, there will be a wrap-up and an opportunity to do some networking. So the agenda for today is just a little bit about how we are organized in finance, in global finance.

Then also now there have been a lot of talks in AI, and we are also working with AI in finance organization. A little bit of an update on the Schenker synergies, followed by capital allocation and then the financial targets, which we also announced this morning. And you can say Jens already touched a little bit on earlier today. But it's good that you are still hanging in for the last full presentation here.

So the role of finance within DSV is we have 4 main pillars that we work on. You have heard about us talking about transparency. Transparency is crucial for us and to support the business to be able to run the business. And as you can imagine, if you remember the slide earlier today, with a number of TMSs that Jesper talked about, a number of ERP systems. So this is hard work, especially during an integration.

We also have a key role to play during the M&A where we support the business as well, obviously, simultaneously with working on our own organization to make sure that we have the best efficient, high-quality finance operations because that is also what we need to do. We also need to be best-in-class in finance, equally as our business is best-in-class on the respective divisions.

So finance, we are around 5,000 people today. We are -- so you can say that we are, in reality, organized in a domain structure, meaning that it's a full finance team reporting into me. And then we have split the different tasks in different levels. You can say so we have global business services, where all our main stream processes are handled, then we have some regional teams and then some local teams. That means also that we are used to thinking about this enterprise level. So whenever we do changes in our DBS, our shared service centers, then it's immediately implemented throughout the globe.

We've also learned how to count to one. Jesper mentioned that earlier today. It's clear, it's where we want to be. We are not quite there yet on the Schenker integration. But as Jesper Riis also mentioned, count to one is the foundation for us to deliver the transparency, to deliver the efficiency and also to be ready to scale. If we do not do that, then we are not able to scale. And yes, you heard Jens talk about M&A, which is still part of our agenda.

Of course, we have been talking a lot about AI today. So I also want to touch upon a case that we have in finance. We actually started with AI, as Jesper mentioned many years ago for -- I think we were -- [indiscernible] is maybe a wrong word, but we volunteered because we have a lot of flows that are central. So we have obviously a good showcase to start with, and we volunteered to that. This is what we call our AI factory that I will do a small deep dive in a couple of minutes. And of course, we also use it, you can say, to the forecasting model, we have some claims handling.

So we are using it to a certain extent. If you look at where we use it the most, this is when we talk about AI factory. This is a little bit similar to what we're talking about on the customs case. This is actually the front runner for custom. I don't have a smart video to show. I think we had one back in the days. But the process is absolutely similar to what was explained earlier today. So we get a lot of -- on the left-hand side here, we get a lot of input that can be PDF invoices, that can be electronic invoices, XML files and whatsoever.

We read the fields or the AI machine read the fields to make sure are they complete, should they be updated, validated. And then they are converted into our systems, enabling us to actually do the booking in the finance system. And if the accruals is done right from the operation, then it's automatically booked and sent to payment proposals. So it's a very efficient structure. We, of course, monitor to make sure that we keep, you can say, the motivation and also to make sure that we deliver on the synergy cases, again, to be the most efficient finance organization globally.

Currently, our solution handles 900,000 invoices per month. So it's a huge volume that comes in by this one. And we have managed to improve -- an improvement, which you can see to the right-hand side here of 150% to around 500 invoices to more than 1,200 invoices with the use of our tool, the EDP that Jesper and his team that we have built and developed together.

And I think there was also a comment or question earlier today, whether it's a proven concept that we are working with or whether it's just trial and error. I guess this shows that it is actually a proven concept that we can use in DSV already now. And then as you have read throughout the day or heard throughout the day, the divisions, they're also embarking heavily on the AI.

So Saskia started also the day and say, how have we -- and together with Jens, how have we started the Schenker integration, and we have actually moved ahead back from then where we announced the leadership where we did the customer segmentation and so forth. It's already now a year ago. We have, in Q1, around 45% of the integration completed, the legal integration. And as you are aware, we have had 1st of April since then, 1st of May. So now we are well above 50%. So we are on track to complete the integration by the end of this year, as we have also stated earlier. That also means that for the financials, we will have full year impact in 2027. And you can see the phasing of here. So I guess you are used to reading numbers, so I will not repeat all of those.

We have also talked a little about M&A. And again, you can say the way that we are organized, our infrastructure, our scalability and our simplicity, that is one of the key foundations for us being able to do the M&A. Then when we talk about the margins and what happens and why can't we see the improvements yet and stuff like that, I think it's important to highlight we believe we follow the track as always. We follow the plan. We know what we are doing.

If you look -- start here from the left-hand side, I could actually have taken even further back. But I've just started in 2015 with the UTi integration. As you have noticed in 2015, we had -- this is just an example on the EBIT margin of 6%. Then UTi, we acquired them in January. That means that 2016, and as always, I think Jens also talked a little bit about that in order to create value, of course, we need to be more efficient than the one that we acquire. We always go in with the aim to lift the margin of the acquired business to DSV levels.

And what happens here is after some very hard work in 2016, we actually managed to get the synergy harvested to realize to be more productive. And then you come out on the other side, not only at the level we went in with and not only on the acquired business, but higher on the total business. So we truly believe this economics of scale. We truly believe in our model that we are able to deliver the synergies and the productivity gains that we promised you guys and latest with the DKK 9 billion of Schenker synergies. So that's it on that one.

Another housekeeping slide here. We have had -- I think it was done even before I started or close to when I started, when we sat down and made a capital allocation policy, it has served us very well throughout many years. So of course, we stick true to that. That means that we were aiming for a gearing ratio of around 2.0, that net interest-bearing debt compared to EBITDA. In these cases where we are outside that aimed target, then we pay back debt. If we are inside, then we look at value-creating investments, M&A or efficiency gains. And if we do not have any, you would say, immediate plans for that, then we allocate the money back to you guys, to our shareholders.

You have helped us many times when we do the M&A, when we do share capital increases, which, of course, we are very happy to that you have been doing and supporting us in that way. And then we work on the business cases and deliver on those. That is how it works. And then we do not have any apparent investments, then we start the share buybacks. The dividend policy is also -- you can read that also yourselves. It's around 10% of the net profit that we aim for and have done so.

Then of course, on the right-hand side, you will see how we have distributed the capital. You will notice that in '25 and '26, there's not much of the black box there, and that's because we did the Schenker integration. So of course, we need to, you can say, use the cash to pay for that. And then when we are done and inside our range, then of course, we will start the share buybacks.

Also happy that Frank mentioned it as well. So you can see it's really embedded when we say what we do, then we do what we say. Frank touched upon the asset-light model. This is a model that has served us very well throughout many years, both when the economic was not that well, but also when the economic environment were very nice. It's a scalable solutions when we have asset-light. So we mean that flexibility, it's actually very good for us, and that is embedded in everything what we do today.

There was a question earlier around the capital employed also to 2030. It's more than 4.5 years ahead, but we have kind of made the plan here. So you will notice that the capital employed will decline slightly. And when you see that number, remember, that is including goodwill, which do not decline, but stays as is.

Another thing that's just worth mentioning here, we have been, over the last year, been talking about some Schenker properties, and we have mentioned a number of around EUR 2 billion. I think when you do the modeling in your sheet, it's very important for us to notice that the majority of those is facilities that we actually are using. But then we are working to implement the asset-light model, meaning that we will dispose the building and then we will do the leaseback. That is around 75% of the current portfolio. And then the remaining 25%, of course, we can use that to pay off debt, obviously.

Yes. I think that's -- I also received a question earlier about the net working capital. We have said for some years, at least a couple of years, our aim is to have a net working capital lowest possible, obviously, but realistically, around 2% to 3% long term. Of course, there can be some focus very much on the quarterly development. Of course, there can be some fluctuations if the rate rapidly declines or rapidly increases. But overall, we are in a good place, and we are in control of net working capital. So that's the long-term aim that we work with here.

We have also what we truly believe ourselves, a resilient financial structure. It's way back when we had a lot of bank debt. At some point in time, it was not that popular to have that. And then at the same time, it showed that we had the opportunity to issue some bonds and that has really served us well. We have had the money at a low -- very low interest rate for many years. So we have been able to use the cash for the acquisitions and also investments, obviously.

So that's how -- I think it's also important here to mention because we have just been upgraded from one of our rating agencies, Standard & Poor's. They removed the negative outlook on our A rating, A- rating, and they did that yesterday. So if you have not noticed that, then now I can tell you that, that is, of course, a positive thing for us. We also to have our financial flexibility. We also have a good relationship with the banks as we have with the rating agencies. And so we have a lot of -- more than EUR 1 billion that is committed facility. So we have the needed flexibility in terms of funding and financing to do our business.

Then sustainability. I think we -- even with the acquisition of Schenker last year, we are very committed still as for legacy Schenker to our sustainability performance and our targets. We have signed up for SBTi, Science Based Targets. We have committed to net zero in 2050. It's a little bit ahead. We also have committed to midterm targets in 2030, 50% reduction on Scope 1 and 2 and 30% reduction on Scope 3. Our business means that the majority of our emissions is -- they come from Scope 3.

If you look at the bottom of this slide, you will notice some of the ratings that we have for the sustainability rating agencies. Maybe you're not that familiar with it. But if you go in and look at it, you will see that we are actually in top -- on top of all of them if you compare to other of our colleagues in the industry. So of course, we are proud of that, and we are still committed to do that.

Financial targets. I think this is something that you're very interested in, and it can be that you have some few questions. Of course, you can read the slide. There's a couple of things that I do believe is very, very important for me to mention here. Firstly, I think in DSV, we always set ambitious targets for ourselves. But of course, I think it was also mentioned earlier today, it also needs to be achievable. If we want to stay competitive and have committed people that work a certain part of to deliver, of course, the targets need to be achievable. So that is what we have done here.

You will also notice that the targets per division is higher than they were at our last targets, which we withdraw in connection with the Schenker acquisition in order for us to get some be familiar with the Schenker business in order to be able to put up new targets. So each of the divisions has higher targets today than on the old financial targets.

Then someone could say, but Michael, 45% is 45%. I couldn't agree more about that. But now the business split is different. Back in the days, our Air & Sea division with Frank, he had nearly 75% of the total EBIT of the group. With the acquisition of Schenker, we got more diversified. We got a bigger Contract Logistics and a bigger growth division, which for default have a lower conversion ratio due to a little bit less asset life than Frank's business areas. So I think that's very, very important to notice on that one.

Then another thing which is new or it's a reinstatement of the ROIC per division. Last time we had targets, it was a combined. Before that, way back when, maybe Lars remember that, we actually had ROIC targets per division. So we have reimplemented the ROIC target per division. And also to make it clear that the Contract Logistics division, there is a little bit more capital employed in that business area. And hence, it would not be fair to have to have a ROIC above 20%. So this is our new target, which is ambitious, achievable, and we are committed to deliver on.

You heard my good colleagues in the GECC team. They're very committed, also a question to Frank, and he said, yes, of course, we have the plans in place, and we will deliver on it. But again, it is, you can say, ambitious targets. We believe that they are achievable.

And then another thing which also is important for me to highlight on this slide. I know that everybody here around knows it, but sometimes it seems that people have a tendency to forget it. The conversion ratio consists of 2 parts, right? One part GP and part EBIT. So of course, in order to deliver on the targets, we also need to have a sustainable business and you can say, GP that we have to work with. Otherwise, it does not make sense.

In our modeling, and you have your own models, but in our modeling in order to come to these numbers, we have built in a GDP growth of around 3%. This is -- I think Jens, he showed a slide earlier today where you saw that long term, we do follow -- the cargo do follow the GDP growth. So that's why we have done that. So of course, if that do not pan out as expected, then of course, we have to look at it again. But currently, this is the assumption for our targets that we have.

And then for the tax rate, just also another housekeeping information here. The tax rate that we have right now is, as I remember, around 28%. Tax rate will always be impacted on the integration. There's a lot of cost that is not deductible. So of course, our tax rate will be higher. It's a reflection of the speed that we have done the integration with that we have a higher tax rate. So our long-term expectations is that we have a normalized tax rate of around 25% going forward.

This is on the combined business that we have. So if we take a moment just to go through the financial targets for the division. Here, if you look at the Air & Sea, GDP growth, we talk about that. Of course, we also, like [ Michelle ] mentioned, work very hard to deliver profitable market share gains. It's not the volume game for us. We need to grow absolute GP. And then the absolute GP, we need to convert to EBIT by being most productive and efficient in the industry. We then need to convert that into cash, so we can go back to our capital allocation model, and we follow that. And then we do the pay off debts, value-creating investments or share buybacks. And I think the building blocks, you have seen those, Frank went through some of the cases, Schenker integration, LTL network and also some of the AI cases that he feels committed to deliver on that one.

Same if we go to Road also here, as I said before, we need to have some GP to work with to deliver on those targets, obviously. So also here, again, market share gains, which is the plan for us to get back in. And then Helmut talked about STAR implementation, AI implementation. And that's, of course, the building blocks for us to deliver on that one, above 35% for Helmut. Someone would say it's a high number, but we know that we can do it. We expect that we can do it. We have good plans in place. And of course, that's also what is reflected in this one.

Then for Contract Logistics, we also expect growth on GP, profitable market share gains. And then all the synergies, of course, for Schenker, the consolidation and then also AI to a less extent than the other divisions here. The numbers that most likely you will ask me about in a second that was put on earlier today, you have to bear in mind that the consolidation part is bigger in Contract Logistics and Road and vice versa for that.

So I think we have a good plan. We have ambitious targets on our conversion ratio. We have delivered well since 2016. I think Jens mentioned that we could go even further back. It's still impressive. We have delivered a CAGR of 16% on average from 2016 to 2025. Of course, we expect that we will be back on track. And we have also in connection with the Schenker integration, we talked about being EPS accretive in 2026, and we truly believe that we will be able to be there on that one.

So the key takeaways here, Schenker synergies, we are on track. We are committed to deliver, conclude the integrational work in the end of 2026. Then additional productivity gains of around DKK 9 billion in 2030. We have continued to have our solid capital structure in place. We remain true to our capital allocation policy. Then the targets that we have set, I think we are, in reality, much more transparent than many of our competitors when we lean out and have these targets here. They are industry-leading. So they are, again, ambitious but achievable. And then we are on track to continue to deliver our double-digit EPS growth.

I think that was my key takeaways. And I think we caught up maybe a little bit on the agenda. I know that we were slightly behind before.

Thanks for that, Michael. Now we can do the final Q&A session, at least the official one. So Cedar?

Just a confirmation. So if I take the invested capital number, I take a 20% return and then I look at a 45% conversion margin, back of the envelope math, I'm sort of backing out about 3% annualized growth in GP to 2030, which is in line with GDP, and you're talking about share gain. So -- maybe you could just give us a bit of color in terms of how you think about the yield part of that equation, particularly with your team talking about more value-add services, et cetera, just so we can sort of bridge why the CAGR in GP is not ahead of the sort of GDP picture.

Yes. I think when we talk about the yield, we -- I know that we have mentioned some numbers back in the days, and that has not served us that well. I think for the yield part, obviously, Frank and the team work every day to have as high yield as possible. We are implementing the Schenker business, legacy Schenker business into the DSV business.

And I believe that in our forecast models here that we have more or less stable yields throughout the period. We don't really know how that will pan out. We do know that we work on having the best yield that we can. The prices are given in a competitive environment. So it has also to do that we need to produce everything, you can say, efficiently. So we have more or less stable yields. I think that's what we will stick to right now.

Let's see. Go for it there.

Kristian Godiksen from SEB. Thank you for the ROIC targets on a divisional level. A question on why is that not higher for Air & Sea compared to Road? And I guess, based on both the current level of the ROIC and also the efficiency gains coming into Air & Sea. And then obviously, also the significantly higher incremental ROIC in that business. Obviously, a where both targets are open and then, but surprised by that.

Yes. I think one thing that you have to bear in mind, when you look at the acquisitions that we have done, which predominantly has been in Air & Sea. So we have a lot of goodwill deployed in the Air & Sea division. That is where we have the biggest portion of the goodwill allocated. And of course, that's you can call a drag that we have to work with there. So that's why we have it as we have.

We take Lars first, yes.

Lars Heindorff, Nordea. A follow-up on some of the earlier ones on the invested capital. You have a comment on one of your slides that you expect to reduce invested capital by -- I think it was DKK 3 billion in Roads and Contract Logistics. Will there be something beyond the plan, which is to reduce the number of -- due to the consolidation in Road and the sale of some of those assets in Schenker? And also, will there be something more in CNA as well.

I'm so happy that we put them up and immediately, you start asking what's more to come. We have 4.5 years to 2030 targets. And I think that we will start working on the things that we have right now on our working table.

I guess there was -- I know there was also a question earlier, how do you deal with all these projects that we have on hand. So I think in order for us to stay firm to deliver, I think we start to work with what we have and the things that we have communicated right now on the ROIC per division, on the conversion ratio per division, synergies of Schenker, AI that we have and consolidation of the network.

I think that's what we will work with for now. And then, of course, as time go by, we might be able to have a little bit more to get the last, you can say, fields in your Excel sheet filled out. But right now, we stick to what we have. I hope it's okay.

We can see Christian down there.

Cristian Nedelcu, UBS. Could I kind of ask you the EUR 6 billion and the EUR 3 billion incremental? Can I convince you to commit to a 2027 number? So how should we think about the realization of that?

I think Jens also touched a little bit on it, and I think you can also hear it during the divisional presentation. We have to do the work first on the different initiatives, and then we can harvest the synergies. If we work fast and hard, the synergies will come faster and to the level that we have disclosed right now.

It's clear that for the phasing part, we start with the Schenker synergies in full year '26 -- full year '27, sorry, and the additional ones coming into '26. Then we will slowly start to have the synergies of the AI and the consolidation from '27 and onwards. There was also a slide from Helmut about the STAR integration, where you can also follow that track.

So I think for '26 and '27, the biggest part will be the Schenker integration. But you have to model, I guess, somehow linear for the AI from '27, not necessarily Q1. But of course, we need to start seeing some impact on that one as well in '27.

I have one question here for you, Michael, online about the share buyback program. How comfortable are you about when to start a new share buyback program?

It's a very, very good question. Believe me, I would like to go there as fast as I can. But it's, of course, a combination because we have the rating agencies. We have issued a lot of bonds. We have a good relationship, both with our bondholders, but also with our shareholders. So it's a matter of finding the right balance.

What -- of course, it's good that we now have removed the negative outlook from Standard & Poor's. It's a positive for us. And then we will follow as from next quarter, our normal way of thinking, meaning that we will look at the quarter that has just passed. We look at the projected cash flow for the next couple of quarters, and then we will assess when we can start to do a share buyback. But I'm maybe equally as impatient as you guys are, maybe.

Bernstein?

Alex Irving from Bernstein. It's a very related question to the share buyback, but from a slightly different angle. You haven't changed your leverage target of less than 2x, which has been in place for several years. Since then, you have become a higher-margin company, you become a much larger company through the acquisitions of even Panalpina and now DB Schenker. Would it be right to think about increasing that leverage target at some point?

It's a very, very good question. Now we started. And based on the relation and the dialogue that we have with the rating agencies, we have said all along that we will work with that. But it's clear that when we talk to the rating agencies, and you have a very fair point because we believe that our business model, we have now diversified. We're not only depending on Air & Sea. We have diversified from a geographical point of view.

So in reality, if the rating agencies, they follow their model to the point, then, of course -- not of course, but then they will be able to have a higher target. But right now, we stick with the 2, but it's a constant dialogue that we have with the rating agencies. And of course, what's important for us is also that we have the trust from them. And as long as we can show a way how we can be deleveraged, then it can be that maybe we can have a quarter or 2 where we have more or less stable. But again, it's very important for us that we can show that we have everything under control, which I do believe that we have. But we are working on it.

Arthur from Citi. Two, if I can, please. The first one I had was around the gross profit yields again. So I just wondered if you could say where the Schenker gross profit per unit yields are relative to those of the DSV mothership. And is there any good reason why you can't converge those?

Second question, obviously, really impressive long-term targets today. But on a sort of shorter-term basis, it sort of looks like you've got another sort of DKK 300 million, DKK 400 million of synergies in Q2 versus Q1. Does that sort of point to sort of DKK 6 billion of EBIT or slightly more in the second quarter?

Yes. Let's take the last question first. You're right. If you look at our guidance, we guide between DKK 23 billion to DKK 25.5 billion. We have delivered DKK 4.9 billion in Q1. That means that on average, for the remaining 3 quarters, we need to have DKK 6 billion on EBIT. And you're right, the significant part of that should, of course, come from the synergies. So that's very well received, and we are perfectly aware and working on it.

On the yield question, I think we have said over the years that legacy Schenker yields were roughly 30% lower than the DSV yields. We've also said that we work a little bit differently from what the legacy Schenker. We measure it in our CargoWise One. We measure, we focus. We have the value-add share and the freight pass-through share. We discuss it with the business, with Frank and we follow up and we do the initiatives on that. Legacy Schenker business did not have the same focus on that area. That means that in line -- of course, we are working on to get it in the legacy Schenker system, so we can have the same visibility and transparency going forward.

But that also means that in line when we get to work with the volume, when we get it embedded into, you can say, the way that we produce it on the LCL part, on the gateways and in Frank's air charter network, and get the contracts aligned, then you can say the yield will increase also on the acquired volume. So that's -- it's a measurement and it's focus and then it is putting into the way that we produce the things that will help us to get to the DSV -- legacy DSV level.

Alexia?

Just a short follow-up on the share buyback or return of cash to shareholders. Is this a decision you evaluate quarterly? And then secondly, would you ever consider returning cash through a different avenue, perhaps for a transaction with one of your kind of main shareholders?

I think, again, the model that we have used have served us well. We have received a lot of positive feedback. The investors know where we are. So they know how we treat the cash when you get it. And I think that credibility and trust, I think we will stay true to that.

I just got one here, Michael. That's a tough one.

There's a lot of questions.

It's a tough one. Regarding EPS, that DSV will deliver an EPS above 100 within 2 to 3 years.

I have heard that before, actually. I think I will stick to the fact that maybe not this year or next year. But if you look at our CAGR and double-digit growth, then I think we are on the right track to do it. It sounds like a high number, but it's also a big business, and we really do deliver on a lot of stuff. So I will be happy to announce that when we get to that.

Great. I think we have Andy down there.

Andy Chu from Deutsche Bank. Just in terms of M&A, do you believe you have the right balance of businesses today in terms of Air & Sea, Road and Contract Logistics. And in terms of the M&A pipeline, could you comment on if there's anything that's live or in play? And do you think that because there doesn't seem to be any large obvious targets there that we may see deals a bit like GIL, which was a carve-out of Agility.

Yes. I think we normally do not comment on our potential targets or pipeline and stuff like that. Right now, we focus on concluding the integration. I think Jens also touched upon it earlier. Maybe the question have been better answered by Jens, but he said that we, of course, are starting to get ready to it. We don't have anything in the pipeline. I think it could be a little bit of everything.

If you look at it, again, coming back to the very fragmented market where we have a market share of around, you can say, 6%, right, and top 40 -- sorry, top 20 have 40%. So there's still a lot of potential good targets of a size that could make sense for us. But right now, we don't discuss the pipeline. We focus on getting things done. But it's a good observation.

Yes. Last question before we get Jens back on stage.

Ulrik Bak, Danske Bank. So considering that you're rolling out 2 new TMS systems, so the trajectory in your conversion ratio between now and 2030, do you see that as a straight line? Or should we see a flattening of productivity as you roll out these TMS systems? Or will AI offset that impact?

I -- let me put it in another way. I think that Q1 was a trial, right? So of course, we should increase productivity over time. Whether it's straight line, it depends a little bit about -- you can say which countries that we roll out. I don't have the exact road map. I know we have one. But I guess, overall, I think it will be more or less straight line. But right now, it will come in, you can say, more or less linear, maybe slightly back-end loaded if we talk about -- remember what we talked about before, we have to do the work before we can have the synergies. And we talked about that from we have rolled out a system or a country, it takes 3 to 6 months before we are fully up to speed again.

You have to bear in mind, it's not a paper exercise. You have to align processes, systems, people need to be educated and get familiar with the new system and so forth. So it does take a little bit of a time. But overall, I think we also said that we are live now in 18 or 16 countries. So of course, we need to be able to start. And I think it was in '27 that Helmut mentioned that we will -- in '28 and '29, we will start to see the real impact.

That was the last question. Thank you for that. Before I get Jens back on stage, just remember again, if any of you didn't have a chance to meet the Volvo guys, there will still be a presentation here after -- just after Jens' presentation. So have a watch.

Can you take a [indiscernible] in it or is it...

Maybe. Not you.

Okay.

And then I would like to invite Jens back to do the closing remarks.

Okay. I think it's been a long day. I can see that we had to get a bit of fresh air in here a couple of times. There was a ton of information for you. I think it's been a very good day and a lot of engagement, of course, from my colleagues presenting, but certainly also with a lot of interesting questions.

Somebody had said to me that basically, there's much more interest this time than when we did it in '22. And I think there's a good explanation for that because, of course, the value of the company has grown significantly. We are almost at DKK 400 billion in market cap. And it carries a lot of responsibility, not only for us in the management, but also for all the people that are in this room because there's a lot of stake when we run the business. And I hope that you -- when you've seen our management teams, they sit with the individual areas. They take it very seriously to drive business forward.

When we run a company, when we have a strategy, it's very important that we can explain what it is that we need to do. And there's going to be a feedback session for you as well, where you will be asked to provide us feedback. So what worked well, what can we improve? And do you have any sort of specific ideas? Because that's part of our journey. It's continuous learning, and we're very curious because it's been 5 years since we had the last Capital Markets Day. And we really value the feedback that you will have. You go to other Capital Markets Days. We don't go to so many, we run our business. So perhaps you could share some of that.

If we take basically our tagline and go back to the presentation, I think the tagline leverage to lead, it still rests on us being a part of consolidation in our industry. We think we have fantastic capacity when it comes to that. You've met many of the people that actually do this work on a daily basis and go out and drive that change. So basically, the muscle behind it.

Then I think we've also had a good chance to talk about our commercial approach. And of course, it's always a little bit difficult when you grow inorganically because you get a dip because we have to divert resources. But after all, I think there's also an understanding that once this settles, when the dust settles, our service catalog is very strong, and then we can continue taking share.

Then I think on the technology bit, both on production systems, but also on AI, we talk about how we are approaching this. We don't see it as -- AI as a separate thing. We see it as part of our ecosystem. And then, of course, that we harmonize our production systems as well. Here, we have great road maps where we have systems that are functioning, that are in production. This is very important. Then of course, we can enhance here and there, but it's not like will they work, will they function. So it's more like basically transfer the volumes and make that change. This is something that we are very used to. We do that every time we do M&A. So I don't really doubt that our teams, they can figure that out.

Then I think we have a very solid team. I'm very proud of how the team has presented today. Sometimes you think this is a one-man band. I get this impression of 2 man because you also meet Michael most of the time. So I hope you had a chance to interact with some of our colleagues that sit in the leadership team and get comfortable that they know their business and what they're doing. At least I'm very comfortable with them.

And then I think -- I mean, you are here because you look after the capital of your investors. And we are then here to look after the capital that you deploy into DSV. There's been a lot of talk about the capital allocation model that we've had it for almost 25 years, and we've stuck to it. It served us well. We think we have a good contract with you guys. Of course, we now need to deliver the outcomes on the Schenker deal so that you know that the last time you trusted us, we repaid that trust by creating the returns that you were also expecting. So I think if you look at this, that's really what the team is heavily focused on doing.

And as I also said, we have a great track record. One time, not so long time ago, Leif Tullberg, who was like one of the founders of the company, he sent the first strategy that I wrote for DSV in 2003. And it was actually quite interesting because many of the things in this strategy is actually the same today. It's just larger numbers, but it's still the same idea.

And I would probably also say that the teams that produced the slides today, they were a little bit better at it than I was at that time. But apart from that, it is really, in a way, an evolution of a company that where we now are at a new position, market-leading and then with technology available that we can embrace and we can bring into the company and continue basically the journey that we've been on for many years. So we look forward to delivering on the financial targets. We don't want to want to let ourselves down and we don't want to let you down either.

So we'll now go back to work. I'm sure you will as well. And there will be a lot of interesting dialogue. There's many topics to pick up after this Capital Markets Day, and you will hold us accountable. You have to know that this is very important for our performance culture that you ask us to step up our game all the time because the energy you give to us, we take that into the company and use that to apply pressure.

So thank you very much for attending. Thank you for holding us accountable and look forward to catching up with you bilaterally when we see each other on road shows and other venues. Safe travels back home. Now there's a little bit of a refreshment over here for those that have the time, but otherwise, we really appreciate your interest in the company, and thank you for coming and safe travels. Thank you.

Ladies and gentlemen, welcome to the DSV Q1 2026 Conference Call. I'm Matilda, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it's my pleasure to hand over to Jens Lund, Group CEO. Please go ahead.

Thank you very much, and welcome, everybody, to the quarterly announcement of our Q1 results for 2026. We will quickly go to the first page where you can see our agenda. I forgot to say I'm joined here by Michael Ebbe. So we're like the usual team from DSV. And there's a statement to the right about forward-looking statements that I just want to point your attention to so that we all are aware of the forward-looking statements.

And then we will quickly go into the highlights for Q1. We have basically continued the progress on the Schenker integration. We will dive a little bit more into that. I think one of the things that is very positive is that we've basically now went through a significant part of the tender season, and we can see that the customers, they are very happy about the integration. And basically, we maintained the volume that we have with many of these customers and also increase our footprint with them. So that is definitely something that is very important.

The financial performance. We are satisfied with the financial performance. Of course, it's been a challenging market, as you also saw from one of our peers reporting recently. It's been a quarter where you had even more geopolitical uncertainties on top of many of the issues that we have been dealing with. And we've managed also to limit the impact of the situation in the Middle East to something that is moderate in our numbers.

We are continuing to repay debt. Michael will come into this, but we follow the normal seasonality on our cash flow generation. And then, of course, one of the things that is really important that we also had stated last year is that we will soon see that we will have a higher EPS than we had the year beforehand. So we look very much forward to present that.

And then, of course, we reiterate our guidance and also reiterate the synergies on the Schenker transaction. So I think progressing according to the plans that we had announced a couple of months ago. So all in all, we're in good shape, but of course, have to work hard to deliver the outcomes.

One of the things on the Schenker integration is the progress that we are making on this. Of course, we're very happy with the situation where we are now live in more than 50 countries. There's one thing that you should note when we go live in a country. It probably takes on average 3 to 6 months before we get the synergies in a country because there's a significant procedure where you have to respect local work councils, labor regulation, et cetera. So it takes some time from when we go live in a country until the integration is actually completed.

This is also visible in the chart to the right, where you can see that actually having done so much of the integration that you can see in our text, actually, the synergies, they're always lagging a little bit behind. So let's say, we finished the integration all in all in '26, then a significant part of the impact will come -- full year impact in 2027.

So the last sort of major countries that we will do in the integration will be done in -- from a country go-live perspective in July, August. And then as I said, it takes 3 to 6 months before we see the synergies on countries like that. So I think this is just very important, and I'm sure we're going to expand on that as well during the call. But apart from that, I think the slide basically explains itself.

We've reported some impact here in Q1 based on the 2025 situation. And then, of course, we expect even more impact as we harvest the synergies during the year. We are now 7,000 white-collar employees, less than when we started the transaction. And basically, the -- we have a situation where we can see how the plans are evolving. We can see that we continue at the same pace in the coming quarter as we've been working so far.

If we look at the financial numbers, our GP up with almost 80%, very pleased with that. But of course, then the EBIT impact that we are all looking for, it, of course, depends on us then harvesting the synergies so that it's converted into EBIT. But I just explained the situation on the synergies on the other one.

We can see the productivity when we measure it, for example, in Air & Sea, that the number of transactions per person is, in fact, higher per Q1 this year than it was last year. So we are in a good situation. But of course, we have to drive the productivity further up and harvest the benefit of this.

On the EPS, yes, it's getting close now to a situation where we make higher EPS this year than we did last year. And this is something that we are all looking for because EPS growth at the end of the day is very important for all of us.

If we take the Air & Sea division, I would say we are very pleased, not least with the development on the airfreight GP. The ocean freight has been a little bit more under pressure. I think this is the market conditions as we all have seen them, where there's been, in particular, in March, some disruptions that also drive what I can say, a little bit lower GP.

And if we look at the numbers, then this should be the quarter where we will have typically in an integration, the lowest conversion ratio and the lowest operating margin. This is because next quarter, we will actually have 2 months where Schenker was already integrated and 1 month where it's only DSV stand-alone. So I think we can with confidence say that the conversion ratio will be somewhat higher in the next quarter. And of course, our operating margin should also be higher. So we've, in other words, hit the trough, and it's all based on the explanation that I just gave when it came to the synergies, yes.

I just have to go to the next slide here. If we then look at the airfreight, if we look at the sort of gross profit, we're also facing some headwind on the FX side when we look at that. But we still managed to grow at this 44% on the yields. Actually, one of the reasons why we have a higher yield is because there are certain customers that had very low yields that are not part of the volume we produce anymore. Apart from that, I think the yield has developed fairly stable during the quarter. So also, we are very pleased with that. Of course, here, you also see mentioned the FX impact on the yield. And I think volume-wise, adjusting for these customers, then actually we are satisfied with the development that we have, and it's sort of within our expectations for the outcome on the airfreight side.

If we look at ocean freight, here also, of course, we see significant FX impact, but still the yields or the GP is a little bit lower than what we expected. Basically also comes a little bit down to our volume development. Our yield is actually fairly flat, stabilizing around the DKK 3,900. Last year, you have to remember that there was a significant activity in Q1 because there was expectations up to the Liberation Day, where a lot of volumes had to be moved and there was some front-loading there as well. So also just take that into the equation or take that into account when you evaluate the numbers for Q1.

And I would say also here on the ocean freight, this is probably an area where we do see the opportunity to drive productivity also somewhat up so that we get a higher conversion rate on that. So I think that was the ocean freight.

If we take Road, here, we have a situation where we almost make DKK 1 billion in a quarter. The gross margin somewhat higher. This is also due to the fact that we've gotten Schenker in. They have more, what they call, system freight, we call it groupage that drives a little bit higher margin because there's a lot of infrastructure connected to that. Conversion ratio slowly moving towards the 20%. And when we integrate the companies, we should also be able to get above on that. And then, of course, the margin on 4.3%, you can say that's in the low end, but we have to remember that if I look at the numbers for Schenker's Road last year in Q1, I believe they were around 1.5% in EBIT. So actually, already significant progress has been made on that side because also the Schenker business was somewhat larger than the DSV business. So I think this is important to remember when we look at the numbers.

So all in all, we are happy with Road. We have had an integration in the Netherlands and Germany, where we had some service issues in January, partly because of the integration, but also because we had some weather conditions that were a little bit extraordinary. So it basically also disrupted our services to a certain extent.

We are in normal production with normal service levels and all that, so it's all gone. But that's also part of what we see in Road. And here, I would just also like to call out that we have some very large countries that go live here in the next quarter. So there may be a service issue or 2 also into Q2. We plan for that. There shouldn't be, but it is very large operations that we combine. So just cautioning on that.

Then on Contract Logistics. I think when you look at Contract Logistics, it's a very positive development. We have, though, to say that our Q1 last year, which is the comparable figure, we were probably not 100% happy about how we performed in Q1 last year. So sometimes that number also looks very nice if you got a baseline that is, let's say, DKK 50 million or DKK 100 million too low. But still, combining DSV and Schenker and actually growing the way we've done, driving the business forward, it deserves a lot of credit.

And one of the things that I'm particularly fond of is that we've set a number of initiatives in motion where we wanted to increase the return on the invested capital because it simply had become too low. And now we are at 10.7%, which is still -- it's a pretax ROIC, so it's in the low end, but it's somewhat higher than it was last year, and it's trending in the right direction. Let's see how the number evolves in the next quarter. And hopefully, we can continue that drive where we get a higher return on the capital that we deploy because this is something that we are all in full agreement of that this is what we need to achieve. It's vital for us.

So with that said, I'll hand over to Michael, and he will take you through the numbers.

Thank you very much, Jens. As usual, I'll just go through some of the highlights. You can go through the entire page yourself or the -- also the quarterly report. Clearly, our numbers are impacted by Schenker. As you can see, our revenue increased more than 75%. And also, like you talked about for Contract Logistics with the underlying growth as well, which we are pleased to see in Contract Logistics. EBIT rose more than 30% to DKK 4.9 billion, again, Schenker and then offset by some of the challenging markets, primarily in Air & Sea as we have seen.

Conversion ratio, you touched upon that earlier as well, Jens, close to 26% and also something that we expect that will, you can say, change for the next couple of quarters in line with the impact of the integration and the synergies is predominantly in Air & Sea as well.

Our cost -- interest costs, close to DKK 1 billion. You have to bear in mind last year, same period of time, we had not paid for Schenker. So it's not really comparable figures here as well. And then you mentioned as well that we are on track on EPS, which is something that we look very much forward to see.

Finally, the tax rate is also higher than normal. And I think I've spoken about that some of the earlier calls as well. It is due to the integration of Schenker. So that's how we see it.

Then on the cash flow, DKK 1.5 billion in Q1, cash conversion ratio of close to 70%. You have to bear in mind when you assess the cash flow for the quarter that Q1 is always our lowest quarter for the cash flow. And then you can say this year, apart from the normal seasonality, we have had a temporary impact from some of the integrations in some of the large countries. It's clear when we go live in such large countries which we go, there will be, you can say, a period of time until we get, you can say, back in full control and use all systems as they are supposed to be used. So there will be some kind of a lag before we can that. So it is temporary. We see no alerts in our overdue percentages and so forth. But of course, it's something that we monitor closely because we need to get those money back, it's clear.

That said, of course, I've said earlier as well that we do expect long-term net working capital ratio of 2% to 3%. So we are close to be in line with that. But of course, I would not have hoped that we were there already right now. We have -- since we started the Schenker integration, I think we've paid off close to DKK 8 billion of debt and then decreased our net interest-bearing debt by around DKK 700 million from the beginning of the year. So I do believe that we are on track on that one as well.

Then guidance. Overall, we have maintained our guidance. Of course, you also wrote the forward-looking statement, Jens, of course, but looking, you can say, out of the window, I think everybody can agree to that the uncertainties and things that are developing is a little bit more, you can say, cumbersome that we have normally seen. We've decided and of course, we will maintain our guidance. We still believe that there will be a slightly positive growth in GDP based on what we see from OECD and IMF and so forth. So in line with GDP is still what we expect. Of course, it's difficult again to foresee what will happen if the situation in the Middle East continues. But our base case is as we right here.

So -- and then on the yield side for Air & Sea, slightly higher average compared to Q4 also as we said in connection with our full year and then single -- low to single-digit growth in the Road market. And then we, of course, expect that Contract Logistics will continue to deliver as they have done here in the latest quarter, but also in Q4 basically. And then again, I must highlight the uncertainties that we have to deal with. So we will keep the same range as we have had. And then lastly, of course, the exchange rates also is important that they stay as they is.

Okay. Thank you, Michael. Then I'll just reiterate the takeaways. I mean, we are quite pleased with where we stand right now with our financial performance. Of course, there's a big ask for the next quarters. I think we are in a solid position for that. I think on the Schenker integration, we continue with the pace we've had. And I can only really say thank you to everybody involved for all their hard work, support and dedication, but also to our counterparties that we're working with, I think, is also a huge thank to them and to have the willingness to collaborate with us to deliver on the dates. And then, of course, our guidance, Michael just talked about it. So I won't really dwell too much about that.

So now we've spent 20 minutes. So we got 40 minutes now for the Q&A session. So really looking forward to that.

[Operator Instructions] The first question comes from the line of Cristian Nedelcu from UBS.

It's on the Air & Sea cost base. In Q1, the cost base was a bit higher than I thought. And it doesn't seem that sequentially versus Q4, we are not really seeing the benefits of the synergies or of higher synergies. Could you elaborate a little bit, are there one-offs in your Q1 cost base in Air & Sea? And conceptually, how should it evolve from here? You made, Jens, some reference to a trough in the conversion ratio in Q1. But could you please help us a bit based on the synergies that you have in your budget, how does the Air & Sea conversion ratio look like in Q2 and then in the second half of the year? Ballpark, could you help us a bit there?

Yes. If we sit and look at the conversion ratio, it would always in the last quarter of the integration where you get the Schenker income in that is lower. So that will be -- we would have some impact on our conversion ratio in Q2 last year because that's where we started the integration. Then there will be more impact in Q3 and Q4. And then the last quarter where you don't have both DSV and Schenker in the comparison, then you will have a lower conversion ratio. So that is what the trough refers to. It's not a Q1 thing. It's something that is a product of mathematics because Schenker had a lower conversion ratio than we had in DSV.

Then holiday accruals is something that is very important when we look at numbers. They will drive the cost down. This is how you do the IFRS accounting. So in Q4, you will have, what can I say, a little bit lower cost base. And then in Q1, you'll have the normal run rate because you don't really have to release any of the accruals to the same extent as you've done in Q4. This is normal seasonality. And this is how you do accounting. So what we watch at is what is the productivity, what is the number of shipments per person per day and what is the reduction of headcount in the division.

And here, we can see in see that we have reduced the headcount just shy of 1,000 FTEs in Q1, and we expect a similar run rate in Q2. And then, of course, we work on driving the productivity up. So then this will lead to a situation where the conversion rate is higher. This is also why I said that now in the next quarter, for the first time, the conversion ratio should be higher than it was in the previous quarter, both as a product of mathematics, but also a product of that the synergies they kick in and there's a little delay in them. This was also what I said it takes, let's say, we go live in Germany on the 1st of January -- 1st of February, actually in Air & Sea, if that -- we went live in Germany on Road and Contract Logistics on the 1st of Jan and Air & Sea on the 1st of Feb. Then it takes 3 to 6 months before the integration is there. So it's very important. This is the reason why it's a little bit back-end loaded. So we will definitely see some impact in Q2 of that and probably also then even in a situation like this in Germany. This is only Germany I'm talking about now.

Then, for example, we've just gotten live in France recently. It will have the same lag or we went live in Italy, I believe it was, for example, on the 1st of December. Then it takes 3 to 6 months before we can see it in the numbers. And I think that is perhaps something that is very important that we emphasize and explain very well so that you understand when you can expect the synergies. We are quite calm about it.

Just a small follow-up on the synergies. Out of the DKK 800 million run rate, how much is in Air & Sea and roughly out of the DKK 5 billion target for this year, how much is Air & Sea? Could you help us a bit what proportion is Air & Sea?

It's up to the IR team because I probably have some of those numbers, but it's a little bit too detailed for the call.

The next question comes from the line of Alexia Dogani from JPMorgan.

Jens, I guess there is a little bit of frustration in terms of kind of how much of that cost movement you talked about on hold the accrual would have been known already versus kind of unexpected. So I guess, can you give some confidence that cost control is visible and you're willing to commit to a kind of a Q2 evolution that will see a material progress and whether kind of current consensus is at the right ballpark? Because I think everyone trusts that you will deliver the set plan, but the proof points are not fully visible yet. So what can you tell us to give us confidence that, yes, indeed, the Q2 number will be a material increase to get close to the EPS growth we all are waiting for?

Yes. As I said, basically, what we are monitoring is that we take the headcount out and that we have, what can I say, the pipeline for what is happening in the countries. This is a very important thing because that's the most material cost driver you have below the GP line before you convert GP into EBIT. It's the staff cost. So I think this is a very important metrics for us. Then the product of that will also be another thing that we monitor is how many shipments per person per day because one thing is that you take FTEs out, but you also have to make sure that the size of the operation that you cater for, it fits the volume you're producing. So I think these 2 metrics, these are the ones we look at.

And the focus that we have on driving them up is relentless. And I've met with the division in Air & Sea, and there's nothing that tells me that we are not moving in that direction. So of course, we are also monitoring this very closely because we all have the same aspiration that we get the right cost structure, we deliver on the synergies. And of course, at the end of the day, that the outcome is that we deliver some EPS and cash flow. So I think we are fully aligned on that, and this is how we govern it.

We now have a question from the line of James Hollins from BNP Paribas.

Just on this moderate financial impact from Middle East, I guess following from Alexia's question, a bit of disappointment in the market today. Perhaps you could quantify the Middle East conflict and maybe what EBIT might have been without it? And a question within a question, if you could perhaps run us through your best guess of what the impact might be in Q2 if the situation were to persist through to the end of June. Just trying to get the puts and takes of how this conflict is impacting you. And any quantification would be lovely.

Take the Middle East situation. I think the result in the Middle East is a little bit lower here in the quarter because the volumes have declined quite a bit in the area. And we have -- of course, we are probably one of the market leaders, if not the market leader from a size of our operation there. So we are impacted by it.

Then one of the things that happens now with the Middle East is, of course, that it drives fuel prices up. It drives sometimes also certain freight rates up as well. And in particular, the fuel prices cause us a little bit of problems this time, not that we can't, at the end of the day, make the customer what can I say they have to adhere to the BAF arrangements. We have Bunker Adjustment Factors. But it's a little bit unusual because now the fuel price, it's perhaps somewhat higher in Asia compared to how it's evolved in the U.S. So the customers, they are facing now a situation where the fuel surcharge is different from region to region, which is a new thing that we have to cater for.

So it takes perhaps a little bit -- there is a little lag on this to get a situation where we get all the customers globally to accept these surcharges. So it's still in the making. We will definitely see that this will be completed in Q2 because we cannot take responsibility for this in DSV or the industry as such. It has to be paid by the customer and lastly, by the end consumer.

The other thing is that we are doing is now we are stabilizing all the operations in the Middle East. Supply chains are flowing. I think things are normalizing. Let's hope that the situation from a geopolitical point of view evolves in a way so that we can maintain a situation where it becomes stable. So -- and I could perhaps just say one thing more about the Middle East. We've definitely received significant feedback from our customers. They're very, very appreciative of the work that our teams have done down there. And I just think it's worthwhile mentioning because it is a rather unusual situation.

Can I just clarify on those basically the fuel pass-through. So given the exceptional events of what's going on in the Middle East and different fuel prices, every single contract you have still allows that pass-through, but there might still be a lag effect in Q2 or at least early Q2.

If you said, for example, that you took the risk on the fuel, it's like a speculation. And it's prohibited to speculate in DSV. So we cannot have a contract if there's no fuel clause in it. Also try to imagine, I'll just give you some numbers. On airfreight sort of on average, 40% of the price of airfreight is fuel or perhaps even a little bit more. And try to imagine that the fuel component all of a sudden, what can I say, increases so that it's 60%. Then if we had to take responsibility for that in DSV, then we will be in a very difficult situation if we would be here at all. So it is something that the industry, the freight forwarders, we cannot take that responsibility.

The next question comes from the line of Patrick Creuset from Goldman Sachs.

It's been a while since we've seen conversion margins around 30% and forwarding from DSV and I get all the technical reasons for it, you mentioned for Q1. As you look ahead, would you say it's likely you'll be back above a more normal 40% conversion from Q2 onwards, basically getting back on track on the normal sort of 40% to 50% conversion margin channel?

Yes. I think there's nothing that tells us with the productivity that we have that we shouldn't get back to those levels. Otherwise, what can I say, we would be -- what can I say, I don't see anything in our infrastructure the way that we produce where we cannot have that efficiency again. But of course, right now, we need to continue the integration and then to reduce the number of headcounts as per plan. In the countries where we have done the integration, we are hitting our targets. I have my colleague, Michael Ebbe, standing next to me. He follows up on this every month and perhaps you can say a few words on that.

Yes. Patrick, thank you for the question. It's a clear, yes, from our side, of course, we should go towards those as well. And as Jens alluded to, we do track it month-on-month that we follow the business case. So of course, we do follow. And then what Jens also said that the 3 to 6 months -- and it is quite a bit of big countries that went live. Now you talked about France, I think, and Germany, but they're not the only ones that went live in Q2. We have had a very busy Q1 in terms of go-live. So certainly, yes, we do expect to see an increase in the conversion ratio from Q2 and onwards.

And you can deliver the historical, I think this is important. I mean that's the whole idea.

I appreciate the clear yes. That applies to Q2 as well?

Yes. But yes, but it has to come gradual, of course. But yes, it does. And then -- but also fair to say that there also needs to be some GP to work with. So...

On the productivity. Of course, now we are at the trough. Then now we get a situation where we harvest synergies. And then, of course, we drive it up. We have to take the FTEs and reduce the headcount before we see the benefit. So if we look at -- every month, we get a number on FTEs that we have taken out. We have the pipeline. So there's nothing that tells us that this journey is not going to continue.

We now have a question from the line of Alex Irving from Bernstein.

My question is on technology. What decisions and actions have you taken regarding your TMFs in Air & Sea and in Road since your full year results a couple of months ago? And is this what's driving the reduction in the other external expenses line quarter-on-quarter in these divisions? If so, should we expect that reduction to continue?

I think right now, we are following the plan that we also had laid out when we announced our full year numbers so that we are moving the majority of our volumes to CargoWise in order to get the synergies and then we will also be using Tango on the Air & Sea side. So I don't think there's too much reduction on other external costs when it comes to that. That's probably more related to infrastructure that we could be rent, could be many types of costs that you'll be having also just that we downsized some of the head office functions that drive a lot of additional cost and regional functions, et cetera.

Then I think on the road side, we are rolling out the production system called Star on Road that comes from Schenker, but it's not really driven a material decline in cost. We've then done something on the back end on the data centers where we have moved a lot of volume already to our data centers. That probably also is a significant driver of certain cost reductions in the IT area as well. So I think what you see in the numbers is a product of many initiatives that we are taking. So I don't know if you have anything to add, Michael.

Just a very small comment, very, very quickly. I think one thing we need a couple of quarters again to see the run rate of the other external costs, 1st of January, we changed the entire allocation model from Schenker to the DSV model. So we need to have a couple of quarters before we can conclude on the run rate.

The next question comes from the line of Ulrik Bak from Danske Bank.

It's on the yield trajectory quarter-on-quarter in Q1. Could you perhaps just elaborate a bit on this improvement in Air & Sea yields quarter-on-quarter? How much is, in your opinion, related to the market developments and the underlying freight rates and disruption from the Middle East situation? And how much is from a new customer contract mix given that we are through the tender season right now? And also, if you could provide some guidance into Q2 for Air & Sea yields, would be great.

I think if we look at it, the tender season, it's typically what can I say, -- if you know the conference Transpacific Maritime, this is in reality sort of based on the tender season and people used to meet up, what can I say, for the ocean freight tenders and the airfreight tenders is normally aligned with that. So then you will then get the award, then it takes some months to phase it in to do the change. So we will start to see now that sort of the volumes from the tender season, they are being phased in. It's not uncommon that this happens all the way until the 1st of July. So we haven't really seen a lot from the tender season in numbers. This is the reason why I explained this.

Then another thing, of course, that has an impact is that we have some low-margin business on the airfreight. It's basically 5 specific things that we can point out every single one of them and follow. And these -- they all taper off basically until the summer holidays. So that's definitely helped us to improve the yield. We didn't really make a lot of GP on some of the volumes were produced as low as DKK 250 per tonne. So of course, you can imagine having a yield around DKK 8,000 and it drives it up if you take some of that volume out because basically you don't produce a lot of GP on it. So that's probably the main contributor to the DSV yield being where it is on the airfreight.

On the ocean freight, I think the yield had been declining. Our VAS has been fairly stable. We monitor this all the time how much value-added services is that we have. And now the freight markup has stabilized around this area that we see right now. Typically, it's sort of like a 60-40 split on VAS and freight markup. And I think that we have had many discussions about how stable that was. Of course, there's some volatility now that stabilizes it a little bit. But it's not like we have dramatic markups on anything because of the situation in the Middle East right now. It is probably going to stay the way you see it into Q2.

So it was a question of -- no. It's also a matter of us working, you can say, with the yields, like we have said all along, there will be a dilution impact. And then it will -- again, a little bit like the conversion ratio, it should be higher afterwards.

Fair. If I just may ask a follow-up. So in your guidance, you assume flat fee yields based on the Q4 level. We saw an increase in Q1. So I guess you're a bit in front of the curve in that respect. So should we expect some of the yield to decline again? Or just how should we think about that assumption that you have in your guidance versus Q1 realized yield?

Of course, we hope that we can maintain, but the uncertainty that we talk about is a bit difficult to foresee. But it would be nice to, of course, to maintain and that's what we are working on. But there is a risk that, that can come slightly down. But overall, of course, we do not normally comment on the yields because we don't really know how it will pan out. But I can promise you that we work every day to maintain that we are as profitable as we can be.

We had said around DKK 8,000, on Air, we are at DKK 8,200, I think it is. And I think on ocean freight, we are a little bit higher than we came out of Q4. It's like 3% up. So it's -- how does the yield develop, how does the volume development, we cannot say that 100%, but it's going to be within those areas that we're talking about right now.

The next question comes from the line of Muneeba Kayani from Bank of America.

I wanted to understand a bit more on the volume impact you've had in the Middle East, kind of how much of the volume decline sequentially in Air and Sea was Middle East? And where do you think you're doing on market share? Kind of going back to your earlier comment, Jens, around you've retained customers. How are you tracking compared to kind of the 5% churn you had assumed in your business plan for Schenker?

I think if we look at the Middle East, it is -- of course, operation in the Middle East is a low part of our business, if you want to isolate it to that. So it's probably if we look at the volumes, it's probably of the overall group, let's say, 1% or perhaps even less. But it is still something -- it's important for the region, but of course, for the group, it's, of course, less prominent. If we look at the -- when we look at the customers and what we're looking at is when we have the churn when we put into the business plan, we measure it in GP.

So let's say, for example, that we have some volume in our comparable figures where it could be very low GP margin, then you might lose a little bit more volume, but it doesn't have a big impact on the GP. So if we sit and look at then the customers themselves, our top 200 customers, top 250 actually, we can see that we're doing very well on them and basically also during the tender season here that we're going to continue to develop that business with them and evolve. So I think overall, for these estimates that we've given, I think we are able to deliver on them.

Just a follow-up then. So we should see Q2 volume seasonally improving?

Yes. I would think based on the tender season and basically also the development that we have in the operation, we should see that the volume definitely should improve. You always have to take the market into consideration though. So you also have to look at how is the market developing as well. But of course, with that said, then we're going to see a better development now because now Schenker is part of the comparable figures.

We now have a question from the line of Lars Heindorff from Nordea.

Also a follow-up on the yield. A question regarding the Schenker integration and the progress there. As you pointed out earlier, Jens, you've been mentioning several times that Schenker had significantly lower yields compared to the stand-alone. How is the progress with the turnaround there? And how do you do that work? And then maybe in connection with that, if you see some improvements, some of the other building blocks that you've been giving us here this morning is problems with pass-through of fuel in the first quarter. You mentioned those lower yielding volumes will phase out in airfreight. It sounds like we're going to see, if not a significant, at least then some sequential increase in Q2 yields compared to Q1. Yes, maybe just a comment on that as well.

I think if we sit and look at it, we will see how that pans out, Lars. But I think there's definitely a floor to our yields. I think that's also what we can say to it right now. It is already, as you say, a little bit higher than some people would have expected. But let's see also now the tender season, how have we secured the volumes at good rates. Of course, we think that we have contracted in a way that is normal for us. So I can't really rule that out. But I think we are in a good spot when it comes to the yields, and now we have to deliver on the volumes and then we're going to get the GP that we are looking for.

And the Schenker improvement of yields?

Yes, you can see we've already -- what happens when we buy a company like Schenker is then perhaps we produce in a little bit of a different way. So we might say, listen, let's do the customs formalities for you, perhaps they didn't have that focus. Perhaps we would say, listen, the local charges, this is how -- one of the things that Schenker had was a different profit split than we had. So it didn't really incentivize that we perhaps would do as much of the work as we try to do in DSV because the profit split was done in a different way. So I think the activity-based costing and the way that we operate the business incentivizes us to do the upselling on the local collection, the local distribution. Many of these things that help us to drive the yield up. And that's been a gradual improvement or journey for us.

I think we've already done a lot of that work during the course of the year. And that's part of why we are already above DKK 8,000 on airfreight and definitely also keeping the yield on ocean freight. I believe that Schenker had a yield on ocean freight, if I can remember the numbers correct, that was below 2,500 or something like that. So try to imagine you take that volume and put it into ours and then we can lift the GP up and have this level. So I think we've done a lot of work. We can probably upsell a little bit more -- but I think most of it has already happened. Yes.

The next question comes from the line of Kristian Godiksen from SEB.

My question will focus on the Road part. Maybe can you comment a bit on how successful you have been in implementing price increases? And then also maybe if you could separate the impact from the higher fuel prices in the Road segment?

I think if we look at the fuel prices on Road, it's, of course, a hard negotiation that you have, but the road organization is used to adjusting what we call the bunker adjustment factor with the customers and some large accounts, they try to drag their feet a little bit, which is normal. But at the end of the day, of course, we can all see at the gas station that the fuel price is up. So I think there is a recognition that this is the case.

Then if we look at road in general, I would say that we -- the road market, in particular in Europe, where the majority of our business sits, it's still a market that doesn't evolve a lot. There's not a lot of growth. So of course, we have to adjust our infrastructure so that basically we have the capacity that is relevant for a market like this. There's not a market for sort of significant general increases in freight right now. I would say that because in certain markets, even the volume is shrinking. But of course, here and there, there are inflationary adjustments that we have to make. So I think this is basically what is happening on the road side right now.

Okay. That was clear. Just a quick follow-up on that. I think, as I recall, you implemented or you announced pretty high general price increases in the Road segment. So is it correctly understood then that much of that has not gone through? Is that how to understand?

No, that was in Q4 that we were out with some price increases at that time. And I think these adjustments, they are, of course, taking place when we negotiate. But here in Q1, I don't think that we've done something on top of what we've done in Q4. So if I misunderstood your question, then perhaps it could be interpreted in a different way in Q4.

How much was coming -- it was pointing towards how much of the price increases you announced that had gone through because I think as I recall, last year, it was difficult to get it through.

But we've had the negotiations now. You can see the product of it. Then the thing is, of course, when you have that, we had the -- last year, we had the pressure from the subcontractors. It swings back and forth this market all the time. Then we went to the customers. Now also you can see that we even went back to some of those subcontractors and discussed a little bit with them because volume moved in a different direction. And this is a normal part of basically running an operation that the market drives, what can I say, the pricing. And of course, we try to make sure that we adjust as quickly as we can.

It's a very competitive market and very fragmented, obviously. So it's very dynamic.

We now have a question from the line of Marco Limite from Barclays.

My question is on FTEs in Road. So you've been able in Q1 to reduce FTEs in Air & Sea and contract logistics. But if we look at Road, number of FTEs is broadly flat. So just wondering why is that? And yes, what is your expectation?

And then just to clarify, on your statement on time lag of cost savings. So basically, in Q1, we have seen Air & Sea FTEs coming down quarter-over-quarter, but OpEx not really. I understand there were some provisions. But is there a time lag as well between, let's say, the reduction in FTEs and the P&L cost savings to will help to model that through.

Yes. I'll give it a go on that one. If you look at the FTEs for Road, I think it's important to say that this is a mix. It's both white collar workers and blue collar workers. And the majority of the savings relate to the white collar. And then, of course, the activity for the blue collar will vary quite a bit over the quarters. In terms of timing, I think I will go back to what Jens mentioned earlier in the call. It does take 3 to 6 months from the go live until we really will be able to see the synergies on the staff cost line. And when we consolidate some of the facilities that's also part of the tender case, that you will see in the GP and that takes a little bit longer normally.

Makes sense. But should we expect a number of people in Road to decline in the next coming quarters based on what you just said?

You should. Unless we get a ton of new volume, obviously, then we have to cater for the blue collar workers. But otherwise, yes.

The next question comes from the line of Jacob Lacks from Wolfe Research.

Just one for me. Can you give an update on anticipated asset sales? How much are remaining at this point? And do you -- and given the asset sales, do you still see potential to get back to share repurchases by year-end?

I think if we look at the asset sales for Schenker, I think it's clear that they have still some terminals that we can divest. And we're talking about, what can I say, a couple of billion that we can euros, not krona that we can divest. We are in the process of that. It will take some years to get it out. But we, of course, try to do as much as we can this year and next year. And then there will be a right-of-use asset for many of them because some of them we will have to put on the balance sheet and keep, but it will be a lease. And some of them, of course, will be extra facilities that we can divest in full.

So I think normally, we would say that a little bit less than half of the volume we divest will come back as an [indiscernible] asset on the balance sheet. And we will then have a more flexible approach to the facilities. So we are continuing that route.

The next question comes from the line of Cedar Ekblom from Morgan Stanley.

I just want to go back to a comment that you made earlier regarding the efficiency potential of your business. So you said that you don't think that there is anything in the infrastructure of the business that you cannot produce at a level of efficiency that you've produced in the past. Would it be fair to, therefore, assume that conversion margins north of 45% at some point in the future are achievable? I mean that's just how I'm sort of backing out those comments. I'd appreciate you understand what you mean by that statement.

No, I fully agree. Otherwise, then we failed.

We now have a question from the line of Parash Jain from HSBC.

My question is more on -- with the increase in the oil prices, what are your customers telling you with respect to second half of the year demand? Where do you see the inventory levels are today with some of your key customers? Any color or color you can share on the second order impact of Middle East crisis on your business, particularly on the volume side?

If it's only in the Middle East or if it's in general, I think the Middle East, of course, will remain subdued. I think -- but supply chains still have to flow there. So of course, they ship what they have to ship. And of course, they try then to use the inventory levels and get them down. Globally, it's a little bit different situation. I think if you sit in Europe, of course, now the fuel has come up, so you might be a little bit holding back. But apart from that, the supply chains will flow. It will do the same into the Americas and also other areas on the globe.

So -- but inventories they are not high. So it's not like there's a situation where you don't have to ship. But of course, given the prices, you don't build a lot of inventory right now. So I think you will see a volume development as you've seen it in Q1. And of course, everybody is then concerned about inflation. I think that's also what you see in all the economic projections. And then, of course, they're also concerned about the interest rate. So it's a volatile environment we're looking into. But I guess that's how it normally is.

And maybe if I can just follow up, just on the air cargo side, now we are hearing about the capacity cut or grounding of planes as we go into the summer. Does it imply that probably demand destruction could outweigh or will be much less than the supply pull out, and therefore, that can support the air yield -- and could -- and has that gone into your number where we expect air cargo yield to be slightly on the higher side?

The information we have right now is that it's going to be difficult to keep things flying, but they will keep flying as of course, there's capacity coming out. You see all the marginal routes they are being idled by many airlines. So I think the normal market mechanism will make sure that the cargo will flow. But if something happens that is more disruptive, then, of course, the yields are going to come up. There's no doubt about that. And we also saw that on COVID, but that's not what we have in our projections.

Good. Then I think we've come to the end of the Q&A session.

Thank you very much, everybody, for listening in. Thank you very much to all our employees that hopefully are also listening in, and thank you for all your hard work and efforts. And we look forward to continue the dialogues with all our investors, and we then also look forward to speaking to you again next quarter. Have a great day, and take care out there.

Maybe we will see some of you already at the Capital Markets Day, 12th of May. Have a great day.

Good afternoon. My name is Thomas plenbrog, and I'm the Chairman of the Board in DSV. First of all, a warm welcome to all shareholders, all the ones sitting here physically. It's a pleasure to see you all. Also to the ones who are participating via the online connection, also to our employees in this building, thank you for listening in, and please go back to work.

As in previous years, the presentation and discussion will be conducted in English. There will be a possibility to get the translation of the English wording discussion translated into Danish via the headsets. So if you need a headset, you need a translation, raise your hand and our fantastic staff will give you a headset. There's one there. We need a headset.

As usual, I will briefly touch upon the stock price since last year. Last year's AGM, the stock price was DKK 1,482.5, and I just look it up just before the meeting here. And today, it is DKK 1,598.5. So it corresponds to a share price appreciation close to 8%. Today, we will give you a brief update on how we are doing in DSV, and that also includes how we are doing with the Schenker acquisition we did last year.

Before we continue, I will hand over the word to Simon Milthers, who we, the Board of Directors, have chosen to chair this session. Simon has been chosen for quite many years now, and we appreciate that you accept the invitation, Simon. And Simon will walk through the agenda as well as the practicalities. So please take the stage, Simon.

Thank you. Thank you very much, Thomas, and to the Board of Directors for yet again appointing me as the meeting Chair of this Annual General Meeting of DSV. I look forward to carrying out the meeting in a good and orderly manner. Please note, as Thomas also just mentioned and as it was stated in the notice convening the meeting that the discussions today will be conducted in English, and this is also in accordance with the company's Articles of Association.

Before we get into the agenda of this Annual General Meeting, we have a few formal tasks that we must go through. We first need to determine whether the general meeting is duly convened and legally competent to transact the business comprised by the agenda. Prior to the annual meeting today, I have noted that the notice of the meeting was published in due time and that it probably satisfies the requirements in the Articles of Association of the company as well as in the Danish Companies Act.

For the sake of good order, I can inform that immediately -- or actually 5 minutes prior to this meeting commenced, the general meeting, it was registered that 161 shareholders are physically present at the meeting, 1 or 2 may have slipped in the last few minutes before that count. Furthermore, I can inform that approximately 73.5% of the votes and the share capital is represented, excluding treasury shares. The final figure will be in the minutes.

Hearing no objections, I conclude that the annual meeting is duly convened and legally competent to transact the business as set out in the agenda. Thank you.

Prior to the general meeting, the Board of Directors has received postal votes and proxies equivalent to more than 73.3. So with the number I mentioned before, 73.5 being present, that means that 0.2% of the shareholders' votes are present here physically. The rest have been provided by proxies or votes by, letter, postal votes.

At this point, I can inform that the Board of Directors' proposals and recommendations, therefore, already enjoy a great and sufficient support by the votes that have been cast in advance of the general meeting and thus will be adopted. Section 101, subsection 5 of the Danish Companies Act requires a full account of the voting for every resolution at a shareholders' meeting, even though the results are clear as they are here today.

However, as we usually do and as is practice in Danish general meetings, I propose that we yet again deviate from -- as we can, from the full accounting of the voting for every resolution. Hearing no objection, I assume that's adopted, and thank you.

Now for practical reasons, when we get to that, if anyone wants to have the word here, but please approach the bench here or myself and show your identification, and then I'll give you the word when we -- at the appropriate time.

That leads us to today's agenda, which is, as you can now see on the Board, Item 1, report of the Board of Directors and the Executive Board on the company's activities in 2025. Item 2, presentation of the 2025 annual report with the audit report for adoption. Item 3, resolution on application of profits or covering of losses as per the adopted 2025 annual report.

Item 4, approval of the proposed remuneration of the Board of Directors for the financial year 2026. And Item 5, presentation for -- sorry, presentation and approval of the 2025 remuneration report. And Item 6, election of members for the Board of Directors. Item 7, election of auditors. And then we round up the meeting with Item 8, any other business.

Consequently, we can now move on to the first items on the agenda. As it is common practice here in DSV, the introductory items on the agenda being Item 1 through 5 of the agenda are processed jointly and brought up for debate jointly. The items are listed on the screen behind me, I hope. No? Next slide, perhaps or the agenda again. Yes. So the first 5 items will now be the introductory items that we will treat jointly.

Now the introductory items will be presented as follows: the Chair of the Board of Directors, Thomas Plenborg, will present the first part of the management report, followed by CEO, Jens Lund, who will present the remainder of the management report. Thereafter, CFO, Michael Ebbe, will present the 2025 annual report for approval, including the ground for the proposal for appropriation of profit and distribution of dividends. And conclusively, I will present the Board of Directors' proposal under Item 4 and 5 of the agenda.

I will now give the floor to the Chair of the Board of Directors, Thomas Plenborg. Thomas?

Thank you, Simon. I will start the year, giving a few comments on our performance during 2025. The year was an extraordinary year for DSV, a year defined by major strategic progress, continued market volatility, uncertainty, and of course, the integration of Schenker. So it's fair to say that all employees and the management team has been extremely busy in 2025.

In the beginning of the year, local trade tariffs were announced, which had significant impact on many of our customers as well as our industry. These tariffs affect our normal volume and trade dynamics and led to increased volume in the beginning of the year. It was followed by more muted activity levels in the second half of 2025.

Recently, we have again seen significant geopolitical events with the conflict in the Middle East. We have been working hard to help our employees in the region and support our customers. And I would like to extend my gratitude to our staff and our customers for understanding in this very difficult situation. I hope you all stay safe.

Despite geopolitical uncertainty, shifting trade tariffs and disruptions across global freight markets, we delivered solid financial performance in 2025, in line with our financial guidance. The performance was supported by a positive contribution from Schenker and the first synergies being harvested. These results will not have been possible without the exceptional commitment of our more than 150,000 employees.

Integrating 2 global organizations while ensuring that customer supply chains run smoothly requires dedication and teamwork. I want to sincerely thank all employees, not only in this building, but globally. Our Group CFO, Michael Ebbe, with the beer here. He will come up later on and give further information on the financials for 2025.

With the completion of the Schenker acquisition in April 2025, we welcomed more than 85,000 new colleagues to DSV, a major milestone in our growth journey that we are proud of. The acquisition has created a new global leader in the transport and logistics industry. It is not an easy job combining 2 large global companies across more than 90 countries. It is actually rather complex. Despite this, we are making significant progress and faster than we initially expected.

In the first 8 months of the integration, we completed 30% of the integration, including some of the largest countries. Based on this strong progress, we now expect to finalize the integration already this year, 2026. We have received strong customer feedback on the integration and the combination of the 2 companies.

And it has a clear priority to us to strengthen our commercial alignment and ensure continuity for customers throughout the integration. Group CEO, Jens Lund, will soon come up here and give further insights on the integration. But I can say that we are proud of the progress we have made so far. And again, thank you to our staff for that wonderful job they are doing.

As we as a company turns 50 years old this year, we reflect with pride of our journey from a small Danish transport company to a global leader and the preferred logistics partner to small- and medium-sized companies as well as large and very large enterprises. For you present here in the room, you can see the installation over here that give us an insight on some of the key themes of the first 50 years of the DSV story. We are proud of our history, but we are also looking ahead because we still think the biggest opportunities lie ahead of us.

Our strategic focus remains centered around strengthening our global network, enhancing our service offering and value proposition to small and medium sized as well as large and very large customers, supported by end-to-end solution and industry-specific capabilities. Our leading platform positions us strongly to drive both organic and inorganic growth as we continue to develop business and to utilize our commercial approach.

In the future, our efforts will be supported by sufficient intelligent AI, which can help us significantly optimize workflows, improve productivity and create new opportunities for our customers. Looking ahead, we are confident that our strategy of growing and optimizing the company will unlock significant value for our stakeholders.

We maintain a disciplined capital allocation policy that we have used -- we have for many years. We continuously seek value-enhancing investment opportunities such as M&A when such opportunities are not available, and we are within our financial gearing target, we will return capital to you, shareholders, through dividends and share buybacks. Currently, our financial gearing exceeds the targeted level due to the financing of the Schenker acquisition. As a result and in line with our capital allocation policy, we will use all available cash to reduce financial gearing.

In 2025, we saw a strong cash flow generation, and we'll reduce our net interest-bearing debt by more than DKK 7 billion following the completion of the transaction. For the year, we are still proposing a dividend of DKK 7 per share, which represents 20.6% of last year's income.

In 2025, we further strengthened our decarbonization framework by combining the capabilities of DSV and Schenker. We advanced Initiatives within electrification, renewable energy, customer-focused emissions, transparency, and we delivered on our targets when it comes to Scope 1 and Scope 2 emissions.

To illustrate the progress on the sustainability agenda, let me highlight 2 concrete examples. Today, we operate one of Europe's largest fleet of electric trucks with more than 400 trucks. While in the warehouse facility in Horsens, it runs on sustainable electricity generated by the world's largest installation of roof mounted solar panels.

Following the Schenker acquisition we have reaffirmed our science-based targets and aligned our ambition with our long-term growth strategy, and we remain committed to reaching net 0 by 2050.

DSV has become a truly global organization with operations in more than 90 countries. And listen carefully, we have more than 180 nationalities employed in DSV. We have a strong organizational culture built on respect for human rights, diversity, inclusion and employee satisfaction. And I would like to add also a sense of getting things done.

Throughout the integration of Schenker, we have placed strong emphasis on our people. We prioritize an efficient and transparent selection process, and this approach has been well received across the organization. Within the first month of the integration, we established our combined global leadership team, creating clarity for employees during a significant period of change and of course, also uncertainty. We recognize that integrations lead to some redundancies. And when this happens, our focus is on handling these processes responsibly and respectfully and to reduce the uncertainty for the involved employees.

To assess our employees' view on the Schenker integration, we completed a global employee survey with focus on integration in 2025. And we are pleased that our employees have high confidence in the integration and acknowledge the benefits for DSV as well as for our customers. The survey also identified areas with room for improvement related to internal communication and change management, which we believe is valuable feedback that we can use to continuously improve as an organization.

In addition, we have been engaging with our global leadership team via summits, town halls, executive calls, regional visits to get important perspective, but also to mobilize our leadership team for the next phase of our journey as an organization.

At DSV, we are always focused on ensuring that we have a strong and effective Board of Directors. As the company grows and evolves, we continuously review our competencies to make sure the Board is well equipped to support management and oversee the long-term development of the business.

As part of this, we conduct an annual self-evaluation to assess our composition, skills and overall performance. And the evaluation covers key areas such as our work and results, collaboration with the Executive Board sitting here, succession planning and future focus areas. The process ensures that we maintain the right capabilities to oversee DSV's strategy and also development.

Last year, we announced the initiation of our succession plans. As part of this process, Vice Chair Jorgen Moller, sitting in the front row, has decided to step down from the Board. Jorgen has played a very important in DSV for many, many years, first as CEO of Air & Sea that he essentially built from scratch, of course, supported by very strong people around him, and later as a very dedicated member of the Board.

Jorgen, we'll ask you to stand up so people can see you. And this is Jorgen Moller. He has been working very hard for so many years. So I was just about to say, can you help me give him a round, warm applause, but you did that yourself, so thank you.

Then to replace Jorgen, we have to have 2 people chosen this year or elected. And I will ask you, Lars, to stand up first. Lars Rasmussen brings extensive new leadership experience from major Danish companies, both as CEO and as Board member. And he further served as Chairman of the Committee of Corporate Governance. And Chong Meng, please stand up. Thank you.

He brings -- yes. Chong Meng brings significant international expertise with senior leadership experience across global supply chains, energy, health care, including deep insights into the Asian markets, which has increasing strategic importance to us. We are getting quite big in Asia. We welcome both candidates and are confident that they will bring valuable perspective to the Board.

With these changes, we maintain a highly capable and well diversified Board, Board that is strongly positioned to support management and ensure effective governance guide DSV through the next phase of our growth journey.

Lastly, this is my last item here. I will address the remuneration of Executive Board and the Board of Directors. In 2025, remuneration for the Executive Board and the Board of Directors follow DSV's remuneration policy that was adopted on last year's AGM. Members of the Board of Directors received a base fee DKK 800,000, which we proposed to remain unchanged this year.

The Executive Board sitting here received a onetime discretionary cash bonus relating to the successful acquisition of Schenker, and this is also in line with our remuneration policy. For more details, please refer to the remuneration policy and the remuneration report for 2025 if you want to know more about this area, both of which are available on dsv.com and have been provided with the notice of this AGM.

And that will conclude my reporting from me and the Board of Directors. So thank you for listening to that part of this AGM. So Jens Lund, I will kindly ask you to come up here. here.

Thank you very much. My first slide will be basically on our 50th anniversary. I'll just say a little bit more about it. It's actually something that we celebrate throughout the company. This is from humble beginnings of our company's journey. Some might even be in the room that is still on the picture have had the pressure before the meeting to speak to some of the people that have been part of the journey or some of the family related to some of the people, part of the journey as well.

And it's really something that is very warming when I get to meet people that have been part of the journey. Everybody is proud of it. Everybody has done a tremendous job trying to participate in growing the company to what it has become today.

This summer, on the 13th of July we'll be 50 years on the exact, that day. And we will also have a celebration in relation to that here in Hedehusene as well, where we will welcome also people that are present here today, and we will try to get in contact with some of the people that have been part of our journey as well. We look very much forward to celebrating this.

And actually also over here, I will just make a little bit of an announcement as well, you can go over, there are some boxes that tell us a little bit about some of the things that we've been through on our journey. So there's a little story in every one of them. And perhaps you can also recognize some of the people on the picture over there. And you can, for example, see Brian Ejsing. But for those that can see, 1997, he's actually on that picture over there, and there's a few other people that you will be able to recognize as well.

So it's a fantastic year for us to be able to celebrate our 50th birthday. If we look at our journey, I think it's fair to say that in the beginning of our journey, it was very much focused on the domestic market. And then over time, basically, the company has evolved from being a very local player also focused on the road activity and then diversifying through M&A all the way through. So we've made some significant acquisitions over the years. Of course, some of the more spectacular might be the DFDS Dan Transport transaction, where we quadrupled our size. As a company, that was definitely a significant milestone.

But there has been many. And every time we make a transaction, we often say now, this is the most important one. We've said that quite a few times on our journey. And I think it's something that is very unique for our company. We still have the aspirations, the energy to continue driving the company forward.

It's part of the founding culture of the company. It's something that the people that were involved all the way from the beginning should be very proud of that they managed to create a company that has a culture like this. Us that are on the team right now, we have the obligation to continue to preserve that culture and nurture it so that we keep it.

Because it's -- as you can see from this slide, still a very fragmented market that we operate in. We are the market leader, but we hold 6% market share globally. So of course, there's still much work to be done. Now it's hard to buy a company that is larger than ourselves. So -- but there are still many very capable very, very competent companies out there where it could make sense to combine ourselves with them.

So with Schenker, our M&A journey is still not finished. We want to continue the journey where we participate in the consolidation of our industry. So I think it's food for thought just to look at the slide up here. If we take Schenker and the Schenker integration, I think the Chairman said we would say a few words about this.

This is actually basically a branding campaign, winning as one. Because we have to become united, we have to become one company, DSV and Schenker. And as you can see, the road goes into infinity, so the journey will be everlasting for us.

Schenker, as you can see, it's actually larger than all the transactions we've done altogether during the years. So of course, it holds a tremendous complexity for us because normally, we would buy a company that would be typically part of our focus on one division. But Schenker, a very powerful company, very competent company. We are so proud of all the new colleagues that we got on board, but strong in all 3 business areas.

Very strong on the Air & Sea side. So basically also a global network like we had in DSV, with presence in all major markets, road. Actually also a very, very solid network on Road and present in more markets than we were in DSV and with a stronger capacity as well. So of course, it's fantastic to acquire that capacity and combine it with the one that we have.

Part of our culture is always that we then embrace these things and bring them in. And on Contract Logistics, we also have now a situation where we have basically doubled our size, and we are a very, very strong and very capable player. And also with Schenker, actually under Contract Logistics, we focused on the midsized segment. Schenker actually had capacity also to handle some very, very important and larger accounts.

So here, we also basically expand our capabilities. I think this is very, very important, and we are really so happy to continue to develop the company and get the new competencies in because it's something that is very important to our customers.

On the integration, I think when we do the integration, it has a certain -- you can call it playbook, but there's a certain formula that we use all the time. So the first question we always want to answer when we buy a company is to answer to the employee, what does it mean for me? So one way to answer that question is that we set the leadership team quickly.

So in closing, we had announced top 250. So basically, leadership in all 90 countries that we are present, not necessarily in all divisions, but it's really a tremendous undertaking. And then 1 month later, top 550. So one layer lower in the organization had been announced.

And this really helped to -- if you noticed in the press and in the media and all kind of places, there has been very little noise in relation to the integration. And I believe that that's earned through the hard work that the whole organization has done to set the team. So I cannot say how proud I am of that, but it's just amazing.

The next question we would like to answer when we do M&A, is the customers. They have the same question. What does it mean for me? But we need to set the team before we can get in front of the customer. So having set the team really quickly -- actually, I had the privilege myself on the first week after closing to go and see the 10 largest customers of the combined entity.

And I cannot tell you how much they appreciated that we reached out so fast because they can then answer to their stakeholders, what does the transaction mean for them, they get first-hand insights. Now it's a standard playbook that we use, but it's really, really important.

Then the next thing we do when we do an integration is that we try as quickly as we can to merge the organizations in the countries. So in this case, we started on the 1st of August. So we closed the deal on the 1st of May. 3 months later, we already go live on the Country Go Lives and merged the organizations.

So the teams that have been working on this, I'm immensely proud of them, the work they have put in. It is a very, very complex to do that as fast as we're doing. Of course, we have significant experience. But still, I think it's something that we have to be very proud of. So we've done the integration. Thomas has already mentioned that we'll be completing the integration this year. So it's definitely -- we are in good progress.

Then I think if we look at the synergies, we are still well underway to create the benefits, the economies of scale brings in such a transaction. This is also what will keep us in the game in the long run, that we drive these efficiencies. Running a company like this is an infinite game. The only real thing that matters is that we stay in the game for a long period in time. And in order to do so, we then have to take finite decisions on how we organize ourselves and then drive the efficiencies as we go along.

So this is really a little bit on Schenker, and it's a fantastic competence that we have. And once again, thank you to all the colleagues throughout the group that has worked really hard on this. I can tell you, many people have put extreme efforts into it. And it's really well recognized.

So if we take then the outcome at the end of the day, what have we delivered. Well, I think we have delivered solid performance in an integration year with tonnes of complexity. And then on top of that, we actually had also some new rules that came in because of a political situation in certain areas of the world where our customers, they actually had to deal with different regimes on tariffs, et cetera, on a continuous basis.

The customers, they had continuous war rooms. So every week, there was a new rule coming out on Twitter or X or some other social media, and then we had to redirect the supply chains. So I think we've managed to steer through this, deliver a solid financial outcome and basically live up to the expectations of all our stakeholders when it comes to that.

I think we've also talked about the customer feedback. It's been very positive. They want to engage with us. When we have meetings now, we don't talk about integration anymore. We talk about how we can continue to evolve together with the customers and drive basically the business relation forward. Michael will talk a little bit about the cash flow. But it's always good if you can convert what you're doing into real cash flow. So we're very pleased with that.

And of course, on the earnings per share, that's what it's all about, driving the earnings per share up because this has significant impact on our share price. For next year, we have to deliver between DKK 23 billion and DKK 25.5 billion. So it is a significant increase, but also what must be delivered and that can be expected given the capital that we've deployed buying Schenker as well. It's like this also with all our internal business cases that we allocate resources, and then there has to be an outcome.

So I think that's basically what there is to say on the highlights. And of course, the run rate for the synergies, they will have to be fully phased in '26 so that we can see them in the numbers in full for 2027. Here's a little overview of the numbers. So revenue of DKK 247 billion as a group. Here, I think it's important to remind ourselves that the Schenker volume in numbers, they are not included for the full year. If it had been so we've probably been beyond the DKK 300 billion in revenue.

As you can see, the Air & Sea division, our largest division still, but of course, also now Road, very large division with the addition of Schenker. As I mentioned, they had a large activity within the road area than DSV. And then, of course, our very important Contract Logistics division as well. So that's how it's divided, and this is how the company looks at the end of '25.

Sustainability. It's still important here at DSV, I've heard in certain part of the globe, it's perhaps not so much in favor anymore. But actually, DSV, when I got to know DSV in the year 2000, sustainability was already at that time, on the agenda. And if you look back in the old reports, it's something that we've been focusing on throughout all the years.

Sustainability really is all about the environment, how can we reduce our footprint on the CO2 emissions. But it's also on the social side, how we basically act and how our governance is when it comes to act as a good employer. And then not least, Thomas mentioned also under governance, how we govern the company on the highest level, but also on code of conduct and other areas within the company so that we have a firm network for that.

Actually, I'm pretty proud of being a Scandinavian company because we have strong traditions in all areas. And I actually believe that it's part of our success that we have high standards within this. We have fantastic teams that do an incredible job, making sure that we stick to our principles and also educate our people in how it is we conduct business in DSV.

When it comes to Schenker, actually, as a German company owned by the government, they also had high standards. So this integration is not that complicated when it comes to the ESG agenda because they also were used to similar practices within their company.

We've just taken a few projects. Thomas has already talked about it. This is our Horsens setup is part of it that you can see, it's across stock and the storage building. The last building we have over there, you can actually not see, it's not in the picture. It's 170,000 square meters. When we constructed it, we had to calculate in the rounding of the earth, that size the building has.

It's also filled with solar panels. It's a very big pilot that we made to invest in it to get acquainted with the technology, what it can do for us. And as far as I'm aware, it's, if not the largest, but one of the largest facilities there is on the roof of a building globally. So it is significant for us, and we already see that we now start to harvest the benefits of it. We're also putting in solar panels in other places. This is not the only one.

And then, of course, the electric trucks. I just want to give a little bit perspective on the number that Thomas said previously. Last year, I visited Volvo Trucks in Scandinavia, market leader on the trucking side for electric trucks. I shouldn't say all that because Benedikte is down here.

She's also familiar with Volvo from the Board, but actually, it's the real number that I heard that approximately at that time, 5,000 trucks have been sold, electric trucks. So we have 400 running in our fleet. I'm not sure they're all Volvo, but they had sold -- they had 70% market share, they has sold 5,000. So of course, Volvo, a very important player also for us. But in general, we had 400 running.

So it means that we are market leading. I think it comes out of our Scandinavian tradition. And we continue to invest and involve in this. It's a little bit slower, the technology, than I think we had anticipated, but I'm confident that we will get there. The capabilities of the trucks right now is in line with what it should be in order to be efficient. And also, the pricing now starts to become cheaper. It has been very expensive in the beginning.

So -- and important, we just wanted a few use cases. We can talk a lot about numbers, but this is real tangible stuff that we are talking about. That was it for me. I just want to say thank you also to you for coming here today. And I also like to thank all of our employees once again for their hard work and dedication. It means the world for us, all the efforts that you put in.

Thank you, Jens. That will bring us to the next agenda item, which is the presentation of the annual report for 2025. So I think I will save you some time and not go through the entire annual report. Even though it's only 133 pages, which is short in these days. Of course, I encourage you to read it.

But if you take some of the highlights, the first thing that we start out with is, of course, to look at the auditor's report in the annual report because that is, you could say, an approval of the numbers within it and all the compliance that will need to live up to. And PricewaterhouseCoopers has actually reported financial -- their audit opinion without any reservations or supplementary information to that. So that's a clean audit opinion.

For those of you who are not that familiar with ESEF, it's Electronic Single European format requirement that we also have to live up to. And actually, there is also 1 more audit report in these 133 pages, which is on our sustainability report that is included in the total annual report. And that is also issued without any qualifications or supplementary information. So that is, you can say, approval from the independent auditor of all things included in our nice annual report.

So in order to save time and not go through all of it, I think I will just go through some of the highlights that you can see in the annual report. I think Jens very well explained, you can say, our financial performance, down to operating profit before special items, which was amount to DKK 19.6 billion, in line what we have guided and significant growth compared to last year.

Out of this, DKK 19.6 billion, we have had some special item costs. It's not without the cost to integrate a company like legacy Schenker. This year amount to DKK 4.5 billion, and we'll also have a similar level of costs for this year, 2026.

We also had to pay interest on our net interest-bearing debt, including all the leases that we have, which brings us to a profit before tax of DKK 12.1 billion. And then we paid tax of DKK 3.7 billion last year. It's higher than we normally do, and that is due to the fact that we are integrating companies. There's always be costs that is not deductible for tax purposes.

So due to the fast integration that we have had, then the tax rate this year is higher than what we would normally see in a normal run rate. That leaves us with a net profit that is attributed to you shareholders of DKK 8.4 billion. This was about the profit and loss. Of course, we also have a balance sheet here. And we say, out of the DKK 290.4 billion, we have equity of DKK 117 billion, which is around a solvency ratio around the 40%. So quite solid balance sheet that we have.

Our return on invested capital, 12.8%, is a little bit to the low end. It's, of course, impacted by the investments in legacy Schenker and will increase over the next couple of quarters and years. Jens was so polite also to mention the cash flow, a significant increase compared to last year. DKK 16.4 billion in cash flow -- free cash flow, as we say. Part of that has been used to reduce debt. Obviously, DKK 7 billion, we have reduced our debt that we acquired in connection with the acquisition of Schenker.

You can also see that our net interest-bearing debt amounts to DKK 86.6 billion. Maybe you remember the number that we paid, around EUR 14 billion. So we have been able to reduce some of the debt. And if you look at it compared to last year, we had 0 debt. That was because we did the share capital increase in connection with paying for the shares of legacy Schenker.

Our gearing ratio is 2.8%. We are aiming to get it down around 2.0%, which is in line with our capital allocation policy. So we continue that journey, obviously. And our average duration, that is, you can say, when we have to pay back the debt is around 5 years. So all in all, I believe that we can say that we have a robust and strong balance sheet. So we are well equipped to move into next year as well and the following years.

And this is a slide that we always have. Our CAGR, like we call it, 16% annual growth in EPS. Obviously, we also strive to really work with that and continue that journey throughout the next years. Then the money that is left now maybe was noticing that now it's the parent account that is on this slide. So it's not reconcilable to the balance sheet that we just spoke about.

It is so that the legal entity, the company that pays out the dividend is the listed company in which you have shares. And that is the one that has to pay the dividend, and that is why we have to show this balance sheet here, how we will continue -- suggest to use the profit that we have.

I think Thomas already mentioned that we proposed to pay out dividend, DKK 7 per share, around 20%. I think you mentioned as well, Thomas, of the total, you can say, net profit that we pay out. So this is a suggestion to do that. It amounts to DKK 1.7 billion, leaving DKK 82.8 billion, so there's still plenty of equity left in the parent accounting.

So that was a quick run-through of the annual report. Of course, I, again, can recommend 130 pages only and then also the resolutions of applications of profit. So that's it from my side, and then I will leave the word to you, Simon.

Thank you, Michael Ebbe, Jens Lund and Thomas Plenborg. As I mentioned earlier, I will now present the Board of Directors' proposal under Item 4 and 5 of the agenda to finish the presentation of the introductory items.

Under Item 4 of the agenda, the Board of Directors proposes that the remuneration of the members of the Board of Directors for 2026 is based on a base fee of DKK 800,000, which is unchanged compared to the base fee for 2025. So no change.

Under Item 5 of the agenda, the Board of Directors proposes approving the presented remuneration report, which has been available on the company's website since the date of the notice of the Annual General Meeting, and I generally refer to the remuneration report. I note that the remuneration of the Board of Directors and of the Executive Board is determined in accordance with the DSV remuneration policy.

Now before I open the floor for questions and comments, I note, as mentioned by Thomas and Michael Ebbe. But as Chairman of the meeting, it falls for me to say it as well, that the annual report is signed by the Board of Directors and the executive management and that the auditors have issued an unqualified opinion regarding the audit of the financial statements. As also mentioned by Michael Ebbe and I think, Thomas, the Board of Directors proposes that of the profit for the year of DKK 3.842 billion as stated on Page 132 of the annual report at DKK 1.683 billion is distributed as dividend, which corresponds to approximately 44% of the profit of the year or DKK 7 per share of normally, DKK 1. The Board of Directors proposes that the remaining profit of the year of DKK 2.159 billion is transferred to the equity reserves.

I will shortly open the floor for questions and comments from the shareholders. To begin with, we have, prior to the general meeting, received notices from a few shareholders who have planned a contribution. And I'll, therefore, first give the floor to Anders Schelde from AkademikerPension. If you're ready.

Thank you. My name is Anders Schelde. I'm the Chief Investment Officer at AkademikerPension. And I speak here today on behalf of AkademikerPension and LD Fonde, formerly known as Lonmodtagernes Dyrtidsfond.

For decades, we have been loyal and satisfied shareholders in DSV. Over the years, the company has developed into one of Denmark's most significant business stories, the success stories. And today, DSV serves as a reference point for many companies, both in Denmark and internationally. This journey has been made possible by skilled employees, strong execution and a clear strategic direction that truly deserves recognition. Thank you.

However, when a company gains growth to the size and importance that DSV has today, it also comes with the special responsibility, not only towards shareholders but also towards employees, business partners and the broader public. At the same time, expectations increase, as does the attention given to the decisions that are made. It's therefore natural that the greater attention is directed towards the company, both when things go well and especially when decisions or priorities raise questions.

We've seen a number of developments that have raised concern among investments -- investors. This includes, for example, the involvement in the NEOM project in Saudi Arabia, which has already been a subject of much public debate. It also includes the information regarding the joint venture between the CEO and the Chairman of the Board. And we believe that too much intention has been gathered around these different matters related to top management. And this is quite unfortunate and ultimately does not serve anyone well.

Situations like these place pressure on the trust in the company and particularly in the Board and the Chairmanship. And trust is one of the most important assets for a listed company. And it's therefore crucial that both management and the Board continues to safeguard it well. We therefore, welcome the planned renewal of the chairmanship of the Board that has now begun, and we see this as an important step in the right direction. We hope that this will mark the beginning of a renewed focus of the work in the Board and that the discussions around governance can once again move into the background.

In our view, governance works best when it's not the subject of discussion. Usually, that means that things are simply in good order. It is therefore important that the Board identifies a solid and long-term solution for the chairmanship, a solution that reflects the -- what DSV needs as a Danish company operating in a global environment, both today and in the future.

The Chairman of the Board in a company like DSV must remain an active part of the company's leadership foundation. The role requires a person who can engage with executive management as a strong strategic partner while also appropriately challenging the management in appropriate manners when necessary. Ultimately, good governance means that authority on decision-making rests with the company and not with a single individual.

I would also like to take this opportunity to briefly comment on the remuneration report. This year, we have chosen not to support the report. Having said that, we would also like to acknowledge that the structure of remuneration has moved in a more appropriate direction in recent years. We therefore hope the company will take the final step and introduce a true long-term incentive program with clear and transparent performance criteria.

For us, as investors, it's essential that the link between pay for performance is clear and transparent. The reporting should enable us to understand and assess how remuneration relates to results that have been achieved. We, therefore, look forward to next year's remuneration report, and we hope that the continued solidification of the remuneration structure will be reflected in improved transparency. In other words, we should be able to work backwards from the numbers. If that is not possible, transparency is simply not good enough.

In closing, I would like to emphasize that we continue to see DSV as an important investment in our portfolios. We've recognized the significant work carried out every day by the company's management and many, many employees in creating value. We therefore wish DSV and all its employees continued success in the year ahead.

We also look forward to the upcoming Capital Markets Day, where we hope to hear more about DSV's intents, balance -- how DSV intends to balance between value creation through acquisitions and organic growth. Historically, combination of these two has been central to the company's impressive development. But as DSV has grown in size significantly, it's natural that the transformative acquisition of the same scale as in the past will become more difficult to identify and execute.

At the same time, the environment in which DSV operates is evolving rapidly. While DSV's core task is moving physical goods around the world, many other parts of the value chains being digitalized around with great speed, not least through the use of AI. DSV has historically been strong in IT, with lean and efficient processes, and it will be interesting to see how new technologies can be implemented so that DSV not only remains relevant, but continues to stay ahead.

We, therefore, look forward to hearing management perspective on these developments at Capital Markets Day, both the opportunities and the risks and how they may shape the next phase of growth. Thank you very much for your attention.

Thank you for the recognition to the management team on the integration and how well they're doing in growing the company. We also acknowledge that we can probably do better in certain areas when it comes to a couple of governance. But in all fairness, I think we're doing fairly well, okay, as a company. So we may be a little bit of a disagreement on certain things here.

I would recognize the 2 new Board members, new corporate governance, bringing their skill set into the Board. So that is definitely recognized. And even though we had to let Jorgen Moller go after many, many years of due service of this company. But I thank you for your words.

Thank you, Anders Schelde and Thomas Plenborg. Another contribution that mentioned they would like the word is Michael from [ Danaher ]. The floor is yours.

Thank you. Thank you for the floor, as it goes, and thanks for being here. My name is [ Mike Back ], CEO, Director of [ Dankorting ], representing 17,000 investors, also some of you here today. And this is my first time here. And in a minute, you will know that it is. But let me first say thanks to DSV for hosting this event and also hosting a lot of you for something to eat. And to the Investor Relations, thanks for receiving my paper yesterday and not telling me that it couldn't be in Danish. So pardon my English here.

Having said that, I actually still think that a lot of good companies can translate both ways. And with a lot of Danes sitting here, I think the debate sometimes could be better if we could do it in Danish and English. So just a little note on that. And the rest here is then elaborated on my Danish paper. But you can read it in the -- on the [ Dangananings ] website.

First of all, of course, also for me, a big and huge thanks to DSV, to the management for -- especially for the Schenker integration and everything you've done. It comes with huge respect. The other thing I would like to touch upon is geopolitical and security, as it was said. And of course, there is many in securities, and there have been many in securities over the last say, 12 to 18 months.

However, I would like to hear a little bit more about what to expect from a shareholders' perspective in 5 to 10 years. Is it -- should we look into a future which -- where you cannot make as much money as you do nowadays? Do you see that actually as something that we should look into because there are so many things going on now? The other thing is the NEOM project that was also mentioned by Mr. Schelde. And is there any sort of more specific things going on about the projects that we should know about with also the recent weeks in security down in Saudi Arabia and the region?

The other thing also touched upon by Mr. Schelde is the credit system that was in the press last year, both on the management but also in the Board. And I know it's maybe not appropriate to take too much discussions, but I still think we should, as shareholders, be able to, with respect for the company and with respect for the management, to discuss it a little bit.

Therefore, I would like to hear both the leadership of the management, daily management, how it has been dealt with. And of course, also, I would like the Chairman to put maybe a few more words on time schedule, plans for changing if changing is coming in the Board. Having said that, I think it represents the shareholders' interest, but also the society's interest that we don't go in the press, discuss things like this, but we meet here and discuss it here. So that's my point.

Third and the last one is artificial intelligence, AI. I know you're working with that, but -- during the last quarter, we actually one day, saw a very sort of dramatic increase in the share price of the company. And apparently, that was also because of a small company saying they were good in AI. But also another thing was that it's also AI-related tradings. Therefore, I would like to ask you, is that something we just have to sort of recognize as the new normal? Or is that -- is there anything that you can do as DSV to actually meet such pressures on the shares?

So that was my sort of freestyling on the Danish scripts. Thanks a lot for that challenge. And yes, all the best to you.

Thank you, Mike Back. I can, in fact, assure you that there are actually interpreters that would interpret it into English. The question that you had around creating calmness in the management and the time line, et cetera, process for that, Chairman will reply to that. And Jens, I understand we'll reply to the remainder of your questions. Thomas?

Thank you, Simon. Thank you, Michael. It was also entertaining. And you do well in English, I should say. First of all, the feedback we, of course, received and seen also in the press is also disturbing for us. It's a little bit annoying because we really want to run our business, and I think that goes back to your point as well.

And we truly just want to run the business as good as we can. I actually think over the last 9 months, we have been fairly successful in doing that. But of course, we carefully consider the feedback, and I can say that we have never spent more time and investment on communication and leadership training. So that's really important to stress. That is something we take quite serious here.

Having said that, when I and the Board are traveling around or when I'm walking around this building, I can say that I think actually the atmosphere is quite good. At least enjoy to walk around and talk with people here, at least when they talk to me, they are quite friendly, I should say. When it comes to succession, I think we are now starting on the succession here with Jorgen being replaced.

He has been a dear member of the company for many years, as I've said, and also of the Board, but now we get 2 strong new candidates in Lars and Chong Meng representing 2 different perspectives that we look forward to get on board. So that will be the first part of this succession. And we can do that because of the very hard and efficient and well done work by our staff. So we are more comfortable with the Schenker integration.

When we will do the next step when I will step down as Chairman, we will inform you, of course, in due time. So I hope you can live with that, Michael.

So then you had some questions, Michael, about the geopolitical uncertainty. I think if there's something that we've seen over the years, it has basically been building up over time. I think if we go back to the first presence of Donald Trump, it already started there, the disruption at that time. It actually already got us engaged in business continuity planning, together with many of our customers. And it also started the journey of us being more agile and before, keeping the supply chains of our customers flowing.

Then we got the unfortunate event of COVID. That basically also led to a lot of situations where we had to act in different ways than we were used to. In the beginning, in the interest of society and then later on when things sort of normalized a little bit, just to keep countries and businesses running. So I think that's been the journey. Now of course, we have then a situation where as it seems that the world order has changed a little bit. And people, they try to annex other countries or do certain things. And it also leads to significant disruptions as well.

The role of the freight forwarder is to keep the supply chain flowing, however difficult it may be. So our role in reality now when we have the crisis in Iran is actually more important than ever before. Because all of you that sit here, you will still consume, so we have to make sure that the freight, it moves. Of course, it can then get into a situation where we will have a global oil crisis. And then perhaps, our consumption patterns might shift for a certain period in time.

But I've never seen a period in history where consumption or the GDP has structurally declined. So there can be swings, up and down. And also significant, I must say, but I've never seen that has structurally declined. So as I'm a little bit of an optimist, I think that world will hopefully continue to evolve in the same direction. So it will probably mean more work for us. We can add more value, and there's still going to be volume to move. So being part of a business like this as an investor is hopefully not too bad an idea.

Then the other thing that you talked about was NEOM. So we went into the NEOM project some years ago, signed a JV agreement and it had to be activated. Actually, NEOM was a project of the government in Saudi Arabia where they wanted to develop the city based on very high standards on the ESG side. Unfortunately, the project has not unfolded the way that it was anticipated because there was actually something wonderful in it for freight forwarders as well.

We would consolidate all the inbound volumes to this major construction site, and that's unseen on the planet. And we were actually quite proud that we were seen as the strongest candidate to deliver an unprecedented service. We're actually ready to deliver it, but I'm seeing that the project, every time we hear something, loses more and more substance.

And -- now, I'm not a geopolitical expert. But the direction that the project has been going in has been consistent in the reduction. I've not heard that this journey is going to changed in the foreseeable future. So we will operate on a master service agreement like with any other customer that we have. And the JV has not formally been activated. We have actually registered a listed company, but it needs to be funded, and both parties that need to contribute capital and the things we have agreed in the JV agreement. So that's the status on NEOM. So actually, we've had a lot of talk, but there's been very little outcome on the NEOM side.

Then on AI and business transformation. I think you're absolutely right when you say there are significant fluctuations. In my experience, the capital market fluctuates a lot if there's too little knowledge. Because then the investor, they react on anecdotes and rumors and not so much on, what I can say, an informed basis.

AI is very hyped. And there's many speculations, what will it mean. Actually, that's the reason why we also have invited you for our Capital Markets Day. Because we will try to explain to you, what does it mean for us. We just had a Board meeting, and we have some very competent people in the Board that also discuss this topic with us.

It's the transformation of the business. How do you do this? It's not only the technology in itself. That is, as a matter of fact, it's not uncomplicated, but it's the easy part. The difficult part is to transform your business. So when you run the business, what do you invest in. When you buy DSV share, it's very much change capacity.

How much can we change the business that we operate on a continuous basis. And when we buy a company, how much change can be imposed on that company. It's the same muscle we're going to use for AI. So we will explain in more detail on the Capital Markets Day. I can say already to you now that it's something we call a domain-driven architecture, where basically we operate the company in a different way. And then we will also transform our workflows so that they are perhaps produced in a different way.

And as I said, I'm really happy that we have a strong Board that is very engaged both on supply and technology, actually into our structure, but also to discuss it together with us, and we look forward to discuss it together with you as shareholders. And then perhaps by informing each other, take a little bit of the volatility out of it so that you can believe in the longer-term plan and the financial aspirations that we have in the company. Thank you.

Thank you, Mike Back and Thomas and Jens Lund for the comments. Are there any -- that's fine. With me again. Thank you. I will then pass the word to Klaus Winkler from ATP, who also has [indiscernible].

Thank you. My name is Klaus Winkler, and I'm representing ATP. I would like to start with thanking you for the report and presentation of the annual report. With an EBIT of a little less than DKK 20 billion, DSV lived up to the expectations set for 2025. In my view, this is a very solid result in a challenging market with very many uncertainties.

We are now more than a year into the integration of DB Schenker, and things have been moving really fast. The integration is ahead of schedule and on track to deliver the promised DKK 9 billion in synergies. That's really impressive, given the scale of such a transformative acquisition. Prior to the acquisition, DSV made significant changes to its commercial operating model, which I expect will support the successful integration of DB Schenker.

DSV has expressed strong optimism that the integration will result in only limited negative sales synergies. This leads me to the following question. Are you seeing the same strong progress on the commercial performance of the integration as you are seeing on the cost-synergy side?

I will also talk a little bit about AI as the speakers. In recent months, there's been a lot of hype and focus on the impact of AI, along with growing concerns about potential to disrupt various industries. I'm convinced that DSV is well positioned to benefit not only from AI itself, but also from the broader business transformation it enables. In my view, the company's disciplined integration of past acquisition is a key enabler of success in this context. I look forward -- as the other speakers to learn more about this transformation and its potential at the upcoming CMD in May, which I will be looking forward to.

I will try with the question anyway. Because I understand we'll get more details at the CMD, but I would like to raise the following sort of more high-level question in this context. Where do DSV see the main opportunities for AI adoption? And where do DSV see the biggest risk of AI potentially disrupting the industry and putting potential margin pressure on the business?

Lastly, I would like to thank you, Jorgen Moller, for a very long and very significant contribution to DSV. You have really been part of trading history at DSV. Thank you so much for that effort. Thank you.

Further, I would like to welcome both Lars Rasmussen and Tong -- Tan Chong Meng, sorry, as new members of the Board. With those words, I would like to wish the leadership and employees good luck in the coming years with a further integration of DB Schenker. Thank you.

Thank you, Klaus Winkler. And please, Jens, reply to the questions.

Thank you for the good questions, Klaus. I think when it comes to the commercial approach that we'd sort of basically commenced on the first of February '24, what we've done at that time was to basically get a clear customer segmentation in place in the company.

And we can then monitor how the different areas of the company was evolving when we sort of worked on them. And of course, now having integrated Schenker, we can see in the different categories or vertical segments, where we are actually performing and how are we performing.

And I think it's fair to say that when we look at it, I think the Achilles heel that we had was in the past transactions or the previous was the largest segment where we actually had the largest attrition of volume. This has actually now become our best performer. So this is actually where we see the best development. That doesn't mean that the other areas, what can I say, are not performing well, but we've managed basically to turn this situation around. And that was a key objective for us.

So I think when it comes to this, we're doing well. Of course, there's always the situation when you do the integration, that there will be a little bit attrition volume, which is, I would say, normal in an integration year. And I'm quite sure that we'll be able to deliver on the promises or expectations that we have set out. And actually, the aspiration is if we can do it a little bit better, it would also be really good.

Then if we take AI and tech, we actually call it in DSV, we should probably also call it transformation on top of that. I heard AI and tech referred to not as your enemy. Your enemy in reality is the company that you compete against that is better at introducing it than you are. So I've always said to the teams that we want to be that company. Because, of course, when you are in a commercial market, it's always competitive every day.

So I think it's both a threat and an opportunity. If we do not introduce the technology, we don't get the efficiency, then somebody else will. And I have two aspirations when I go to work. One is, of course, to repay the trust that you all put in DSV because you've invested. Thank you very much for that. We all do a lot to then deliver the financial outcomes.

Now I also have another aspiration: to look after our colleagues. So this means that we will have to introduce the technology so that we stay competitive so that we have a long-term job for employees in the company. It's really important. So it's not really -- if you look at that, it's quite an obligation if you sit in the management to think about the guy that drives the forklift over here or somebody that worked in the canteen or something else.

That if we do not do the right thing on the technology, DSV might not be the consolidator in the long run, we may be consolidated. So we're all going to do under management in the company, whatever we can to make sure that we stay relevant and that we acquire the capabilities that the new technology brings to us and that we're going to do it faster than the competition. You can rest assured on that. Thank you very much.

Thank you, Jens Lund. Now does anyone else wish to make a contribution? I have -- one at a time. [ Stefan Roshan ], could you take the word first? Sorry, there was 3 people standing up at the same time. I believe that's Stefan Roshan, but do please introduce yourself.

[Interpreted] It's 50 years since DSV started. I think it's time for me now to speak up. For those who don't know me, I can tell you that I've been part of the history of the company since it was listed. It was founded by Leif Tullberg. He was a hauler of gravel. And together with other haulers, he agreed to establish the amalgamated haulers. They did it, they joined forces so as not to compete against each other. They wanted to build a bigger company, transporting soil away from road construction.

And at a certain time, Leif Tullberg got the idea. He bought Borup Car Transport. And that was a good idea. And Kurt Larsen was there, Kurt Larsen and his team in Borup Car Transport, near west of Roskilde, where Leif Tullberg also came from, they had the idea that it was better to run with full loads. If you were a forwarding agent, you wanted to do full loads and not pick up individual pits, bits and pieces, right? Now you shouldn't do that. You want the customers who could provide full loads so it wasn't so much trouble, so you can make more money from it.

But Borup Car Transport was a very, very small forwarding company. They were completely unknown outside Roskilde and the neighborhood. But Kurt Larsen was a very good forwarding agent. He had a good agreement with Leif Tullberg. And they agreed that as long as Kurt Larsen wanted to be top of the management, he would be the CEO. That was like a deal that they made. Very few people knew about that. But that was one of the reasons why Kurt Larsen was the CEO for all these many years and where DSV acquired one company after the other.

Then Kurt Larsen became the Chairman of the Board. And personally, I feel very comfortable with that. I felt comfortable with Kurt Larsen as CEO and as Chairman of the Board because this was a guy who really knew the business. He was a forwarding agent. He knew customers. He knew transport, he knew fancy systems and what it was all about if you wanted to make money in the forwarding industry. He was a very unique, very pleasant, very pleasant person as a CEO, and I really appreciated him.

And I met him at AGMs and also at various receptions and other events. And under Tullberg, Leif Tullberg and Kurt Larsen, a lot was done. And Belle Flackenberg, He was the Chairman for many years, and he was 1 of Tullberg's comrades as haulers. Previously, they had an attorney from Roskilde, but that was too much trouble. So they put in Flackenberg, and he was Chairman.

Anyway, there was a lot of entertaining effect from that on many occasions. So other than that, they were very skillful businesspeople. They knew where to go. And they got there, they got where they wanted to go. Leif Tullberg was very sort of impulsive. When he got an idea, he presented it to Kurt Larsen. And when they agreed, they went on with it. And Kurt Larsen, he said that he had to do all the work afterwards, right, to see whether that could succeed once again with a big acquisition, for instance, of a new hauler company.

Right, then. Today, we are here in 3 or 4 months. And on the 13th of July, the company will turn 50. So I really would like to recognize and congratulate Jens Lund and also the rest of the team up here. In your report, Jens Lund, I really noticed. I'm 8 to 10 weeks in Germany every year. You really recognized Schenker. I appreciate that. Schenker, who was a bigger company than our DSV.

It was a big company, very proud company, serviced many big German and American companies. So in many ways, they were our big brother. They were not the underdogs. They were actually bigger than us. And very professional, as Jens Lund said here today. So I really appreciate the fact that you recognize that because the Germans have always been a very thorough people. And there hasn't been that much involved in Denmark before.

But this is digitalization, we carried out over the last 20 years, but it makes society very impersonal. I think. But anyway, the Germans, even if they have not done so much on IT and digitalization, still have been extremely efficient, so they could have a position as the world's biggest transport company and forwarding agent before DSV acquired Schenker. Congratulations on that purchase. And I'm happy that the integration is going well. And from the very outset, when you got approval of the takeover with your bid of DKK 107 billion had been accepted. And you went out to visit the biggest companies. That was very important. That's the most important thing.

But no matter what business you have, in addition to your product, it's the employees and the customers, they are the most important. The fact that Jens Lund travels probably with Schenker's CEO to visit the 10 biggest customers, this really shows me that DSV has its focus in the right places. I've been a salesman all my life, creating relations. I have been doubling 2 companies in 4 or 5 years. Personal relations, I know how important they are. You can have all the competitors with lower bids, right? But if the personal relations are strong enough, customers want you. They want you.

Now if they only send things in the Nordic countries or only in Europe or sending things throughout the world, they wanted to work and to work every time. This is the most important aspect because big companies, and there are subcontractors as we are to big companies, we are a transport subcontractor, and it needs to work. And DSV's people try to do that every day. I know. You don't necessarily need to be the cheapest. You don't need that. You just need to be reliable. So it's great to hear the integration with Schenker is going well, and you recognize and appreciate the professionalism of Schenker. It still is very professional. That's for sure.

Now you're number one. Your gigantic, ambitious goal to be the world's biggest hauler company. Here in Hedehusene, who would have thought that 10 years ago, right? If you said that in Copenhagen or in Jutland or wherever you said that, then in 5 or 6 years from now, the biggest transport company in the world will be in Hedehusene here in Denmark. Not many would have believed it, but that's a fact now.

So I'd say that I've said it before, I know, I think that you need really to focus on being excellent in the way you execute and operate the business, and then you need to focus on the environment. The environment has really been abused the last 50 years. We travel, we eat, we buy. We do as we please, right? See how many people have become extremely fat in the last 50 years at the expense of the environment, much of it. You only have to go to Germany, to Hochstein, a natural area, mountain area. Not tall mountains, but it's an area with mountains that are 500, 700 meters tall.

But 80% of the trees have gone out because of heat. The temperature is much higher, 80% of the trees are now dead. You see it every year, forest fires in Southern Europe, in Greece, in France, in Spain, in Portugal, they last for weeks. And they run thousands of square kilometers because the temperature has gone up so much. Particularly in Southern Europe, but also here. And Hochstein is not far from the German border.

Here, in Denmark, we focus a lot on it. But we don't have these disasters, right? So we live the way we have always done, don't we? We put a few solar panels on the roofs, and then we have a clear conscience, that's what we think. But DSV, you need to focus much more on the environment. In January, February, there were 18 storms in Portugal and Spain.

The Portuguese fishing industry has been completely ruined because of 18 storms, tempests in 2 months. Central Europe, we had flooding last year. Humongous places were ruined, Germany, Hungary because the rivers spread. So we have seen it again and again. Also here in Europe, that the weather has become much more dramatic.

And in DSV, we also need to cater for that. How do we do that? Well, every day, between 60 and 100 trucks leave Italy to go to Denmark with spaghetti, wines, industrial products and what have you. And think how many trucks go ahead to other countries. The good forwarding agents, they use the railway system. I went on holiday at the Rhine 2 or 3 times every hour. We have these long rail systems. There are trailers they put on in Northern Italy or elsewhere, Southern Germany, south of Germany, and they're going to the north of Germany or Europe or the Nordic area. DSV never use railways very much because...

[Foreign Language]

[Interpreted] Yes, right. I'll finish as the speaker. I just want to encourage DSV's Board and management. Because in DSV, you look at what is efficient, how can we make money. You have to think much more about the environment impact. We owe it to ourselves and to coming generations. We need to pay much more attention to that.

And on Friday, the 6th of March, I saw Grimaldi, an Italian forwarding agent in the Port of Hamburg. We can get our products by ship also to Northern Europe. So there are many reasons why we can use the railways and ships going from south and to north in Europe. The margins might be a bit lower. But Schenker have a lot of experience. They were owned by Deutsche Bahn. They were owned by them. So in DSV, we need to look more at the environment even if the margins might suffer a bit. So Jens Lund & company. I hope you will focus on that in this coming year. Thank you.

Thank you, Stefan. Jens Lund would like to comment.

[Interpreted] But I guess I don't know whether to answer in Danish or English. But I think it will be in English. It's like we have an international audience here, so that's how we've decided to conduct it.

Anyway, if we look at block trains from Italy, it's something that we've been working with for quite a while to get cargo basically on the rail instead of the road. One of the things that have been driving this sort of trend is also that it's very heavily restricted under weight when you drive the trucks up, let's say, for example, to Austria or Switzerland. So already today, significant cargo moves on that.

I would also just like to point to your attention to that the waterways is something that we use quite a lot in Europe as well. We move significant volumes. As you know, we have a very big trailer pool in DSV where we can do on a company traffic. I think we are the market leader on that. And I think we're also the market leader in electric trucks. I think we actually do put quite a significant effort. And when we can move freight in this way, it's actually cheaper than if you move it the conventional way.

So it's both effective, but not all types of cargo can be moved like this, unfortunately, because some is time definite. But all the cargo we can produce in this system is produced in this system. And we take the environment very seriously and also your comments, and we'll make sure that we stick to the plans that we have in the green transformation. Thank you very much.

Thank you. Is it [ Johann Jensen ]? Well, [ Kevlai ], you can take it now.

[Foreign Language] [Interpreted] Well, Johann always has some good stories to tell. We can talk about that later, but thank you for your appreciation of shareholders, but you gave us a good meal before the AGM, before the meeting where we are here to support you. I think the best thing you can actually do with regard to shareholders is to give them a good meal because we spend the whole day just getting here. So it's a bit poor to see what nourishment we get in some of the large businesses that had AGMs. So thank you for that.

And thank you also for the good effort you've done in relation to the integration of Schenker. You have acquired a company in Saudi Arabia, as far as I remember. But let's not talk about that now. But you tend to skip, when you go over an annual report, it's the page where you read all the interesting things.

The explanation of -- yes, the comprehensive income statement, where you find interesting information. It shows that a large proportion of the profit is taken out of it. We would like to hear a bit more about that, perhaps. And also, more about the equity because that's all -- that's where all the interesting things are happening.

So -- and we need to be aware of that shareholders. I think that this should be mentioned in the 5-year review in order to make it easy for us ordinary shareholders to get a quick idea of what the situation financially is like in the business. What we haven't got here is information about acquisition of treasury shares. Have you bought? Have you sold? Have you allocated to employees, and what price did you pay? So that's the kind of information that escape our attention because it's not very easy to find.

Rockwool, a couple of years ago, had acquired treasury shares at a price of DKK 2,066, I think. And then we had the crisis in 2007-'08, and the price decline, the share price of Rockwool went down to DKK 666, I think. It was a huge decline. Who would like to buy shares at that price as an employee? But there was a loss for Rockwool in this that the shareholders knew nothing about. And it was concealed in the account.

So, a question. No. That's another thing. It's all very well with this there's much mention of water and climate. But what about all the airplanes in the air that emit aluminum and other toxic things, all those white trails they leave, the airplanes in the sky? We need some want to take action. And it's the government that need to do something. Trump has done that in the U.S.

And the Kennedy's, they have simply made sure that it is not okay for airplanes to emit those white trails yet. And now they're closing Federal Bay and they are about to introduce new systems. So which steps have you taken to deal with the change in the U.S. economy?

I'm afraid that Europe is going to be left behind because we have done something very stupid in relation to Ukraine, we wasted a lot of money. We have tied ourselves to the Chinese, and we are not very good friends with the U.S. We have really shot ourselves in the foot here in Europe. What do you intend to deal with the new economy? I hope you've heard about it. Thank you very much.

Tough for them. Thank you. Michael Ebbe, will you reply to the financial question?

I hope that I caught most of your questions. And I'm sorry if it becomes a little bit too technical. Okay. [Foreign Language] Yes, Scott?

[Interpreted] Okay. It might be a bit cyclical. You are right that we have a loss for other operating income, only because of exchange rate regulation. When you acquire, you acquire in foreign currency, IFRS requires that we need to convert that. And the dollar has been against us last year. That's why other comprehensive income has a negative DKK 5.7 billion, and this is a 99% of the development you have there.

If you look at the equity and the explanation, other comprehensive income is part of that because of the exchange rate losses, we have the net result. It also influences the equity, the total equity rises from last year, DKK 114 billion to DKK 117.7 billion this year. Other major items that are here, it's DKK 1.7 billion for dividend to shareholders and the sale of treasury shares primarily to staff gave us an income for equity of DKK 2 billion.

If you look at the treasury shares that we acquire, in the annual report, there is a note that specifies precisely the movement of purchase and sale of treasury shares. So then we do to cover our option programs that we have been running for many years. We have not purchased any shares. And last year, here, we used our cash flow to reduce debt. The shares are below that we acquired at below a price of DKK 1,150 on average. So when the staff utilize their bonus, you do get that profit in there.

[Interpreted] Yes, that was a partial answer. You haven't got the nominal values in. So you have DKK 2 billion, yes. but that is because when you purchase those shares, you wrote it down over equity. So it's part of equity with 0 krone. Is this whole interaction that's so difficult for us as shareholders. That's why I say, let's get those things out in the 5-year overview so we see what has been bought and what has been sold and what values they've been into that. That will be satisfactory. Thank you for giving me the floor once again.

[Interpreted] Yes. The question of, I think, competitive power in China, Europe and the U.S., I think we're also questioned, the various economies and so on and so forth. Some countries are thriving more than others. When we work, we normally go in the direction.

You can see, we have expanded our Board of Directors. We are now getting more exposure towards Asia. We've already invested in Asia for many years. It's because they have a growing economy. The same in the U.S. And we have a -- we're going a bit slower in Europe. So we're allocating fewer resources to Europe, and we are allocating more resources -- it could be Mexico, be it the U.S. or it can be Asia.

This is a natural part of the way we operate our business. This is the way we can generate a return by following the dynamics that exist. You can be certain that we monitor these 2 elements that you talked about. It is part of the way that we do our resource allocation. Thank you.

I'll return to English. Anyone else who wants the floor before I conclude the debate? That does not seem to be the case. I will therefore close the debate. The debate is now closed. So moving on, I therefore conclude that the general meeting has one, adopted the Board of Directors and the Executive Board report on the company's activities in 2025; two, adopted the annual report for 2025; three, resolved on the application of profits and distribution of dividends as per the adopted 2025 annual report; approved the proposed remuneration of the Board of Directors for the financial year 2026; and five, adopted the 2025 remuneration report. Accordingly, Items 1 through 5 are closed.

The next item on the agenda is Item 6 regarding election of the members of the Board of Directors. The Board of Directors proposes that the Board of Directors is composed of 8 members and that 6 members of the current Board of Directors are reelected. Accordingly, the Board of Directors proposes the reelection of Thomas Plenborg, Beat Walti, Benedikte Leroy, Natalie Riise-Knudsen, Sabine Bendiek, Tarek Sultan Al-Essa.

Further, the Board of Directors proposes that Lars Soren Rasmussen and Tan Chong Meng are elected as new members of the Board of Directors. For information on the candidates' qualifications, other managerial duties and commercial undertakings, demanding organizational assignments and independence, I refer to the fact sheet on the candidates, which was included in the notice of the annual meeting. Does anyone wish to comment on the proposal?

Seeing that is not the case. By that, Thomas Plenborg, Beat Walti, Tarek Sultan Al-Essa, Benedikte Leroy, Natalie Riise-Knudsen and Sabine Bendiek are reelected as members of the Board of Directors and Lars Soren Rasmussen and Tan Chong Meng are elected as new members of the Board of Directors. Congratulations on the election. Any mispronunciation of anyone's names, I beg your forgiveness.

The next item is Item 7 regarding the election of the company's auditors. The Board of Directors proposes reelection of PricewaterhouseCoopers [Foreign Language] as auditor of the company in respect of statutory financial and sustainability reporting. According to the EU regulation on statutory audit, I inform that the proposal is in accordance with the recommendation provided by the Audit Committee, which is not affected by third parties and which has not been subject to any agreement with a third party limiting the general meeting's election of auditor. This is something I must state. Is there anyone who wish to comment on this proposal?

That is not the case. Consequently, I record for the minutes that PricewaterhouseCoopers [Foreign Language] is reelected as the company's auditor in respect of statutory financial and sustainability reporting. Congratulations.

The last item on the agenda is any other business relating, of course, to DSV. Any -- are there anybody who wishes to take the floor? Once again, and again, I remind you that needs to regard DSV. Thank you.

[Interpreted] I was a little bit brief before. So I wish to tell you that on LinkedIn on my profile, I have given some information about this chem trail from the airplanes. And I've also a song that you will find on my profile about the pollution caused by the chem trail. It's simply to the detriment of our animals.

You heard us now that the trees are dying because we use aluminum, or rather, they are sprayed with aluminum from the airplanes. No one is doing anything about it. The reason for all this is something that people generally omit to address. That's just what I wanted to point out. Thank you.

Thank you. Anyone else on the last item on the agenda? As that is not the case, this completes the agenda of the Annual General Meeting, and all that for me remains to do is to resign as meeting Chairman of the general meeting. And I do thank you all for an orderly and successful annual meeting here at DSV.

For closing remarks, I'll pass the floor to the Chair for one last time. Thank you.

And thank you, Simon, for chairing this AGM so well. I would like to say thank you to the speakers to join us. Thank you for your input to us and the Board of Directors and to the executive management team. Michael, refreshing input from you as well. Thank you so much. And Klaus, thank you also, and thank you for the acknowledgment of Jorgen for his strong duty in DSV. It is so well deserved.

So Stefan, I really appreciate that you also acknowledge our roots, Leif and Kurt as an example, but definitely deserve credit for where we are today. And Kavlai, you should say, thank you to DSV for getting free airtime here with your LinkedIn. I think it will cost you a few beers afterwards, I guess.

With that, I would like to say thank you to all for coming here today, and I hope you have enjoyed the input we have enjoyed that you have taken the time to come here. We try to convey some of the things that are going on with the gentlemen up here. So I'll just wish you a safe trip back, and have a wonderful day and evening.

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Ladies and gentlemen, welcome to the DSV Annual Report 2025 Conference Call. I am Sandra, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it is my pleasure to hand over to Jens Lund, Group CEO. Please go ahead, sir.

Good morning. Thank you for joining us here on this investor presentation that we will have in relation to the publication of our 2025 results. Today, I'm joined by Michael Ebbe, and we will basically go through the presentation as we normally do. And once we've completed the presentation, we'll be happy to take your questions.

If we skip to Slide #1, there's just the reference to the forward-looking statements that I would like you to pay attention to and then, of course, the agenda as well.

The highlights of the year, I think, is clearly, of course, for us that basically, we now can announce that we complete the Schenker integration at the end of 2026. I would say that the -- both the feedback from the employees and certainly also from the customers has been very constructive because we managed to take out the uncertainty, both for our employees, but also for our customers. I'll say a little bit more about the integration on the next slide.

So I'll move on to the financial performance. It's been a tough market. You can also see from the reporting in the last quarter that there's a lot of headwind on FX, plus all the geopolitical issues as well and also yields, of course, under pressure as well. So very happy to deliver on our guidance. Furthermore, of course, we can see that actually we do have good progress both on the Road side and also on the Contract Logistics side as well. So we're very pleased with that.

On the cash flow, I mean, at the end of the day, we have to transform what we're doing into cash flow, and it's really great to see that all the efforts we put in there also are visible in our cash flow statement. Of course, the EPS growth, this is what we're aiming for as well, and we are well on track to deliver on that in '26. So also here, we are pleased.

On the outlook, DKK 23 billion to DKK 25.5 billion. I think if you take into consideration the significant headwind on FX, I think actually that we are satisfied with the guidance. Of course, it's a tough market. But overall, we think it gives a good indication that we managed to drive the company forward also in '26. And then the synergies, we're going to achieve the DKK 9 billion. We are confident about that. As we speak, we have actually already now made significant progress on the countries where we go live also here in '26. So we have a high certainty or conviction that we're going to deliver on those numbers.

And here's just a little slide on the Schenker integration so that it's clear that, I mean, in '25, the numbers, they include almost DKK 1 billion in impact. And then, of course, there's going to be impact here also in '26, as you can see. And then we will have sort of the full impact in '27. You have to remember when you integrate a country that it may be that we go live in the country, but it will take some months, sometimes 3, 4, 5 months before the integration is actually completed in the country, and we've moved everything together. And that's also when we then realize the synergies. Sometimes we also have to go through due procedure with the employees because sort of the arrangements that you would have in the different jurisdictions. So it's always a little bit back-end loaded, the impact of the synergies, and that's also what you see in this table here.

If we look at the financial highlights, I think we've managed to basically grow our GP and also grow basically our EBIT as well. The guidance is also mentioned over here to the right in the column. And I think the presentation here is fairly self-explanatory. So I won't necessarily mention the numbers.

But sort of skip on to the Air & Sea slide, where you can see that the significant headwind on the Air & Sea side, if you look at the numbers, it's clear that the GP is very much being, what can I say, a little bit under pressure because of the yields not least on ocean freight, but also on airfreight. Here, you have to think about a little bit the FX as well that plays a role.

Conversion ratio, of course, due to the full year impact of Schenker sort of coming in so that it will come down to the trough, and then it will start to go up. This is quite normal for an integration. And of course, that then drags the margin down, as you can see. There's nothing in the things that we are seeing that indicates that we're not going to get the productivity back to the levels that we have seen before.

If we look at the Air freight market, I think you can see the GP here, of course, on the left. And on the right, there's been some discussions also about the yield of 7,600. Of course, there's some Schenker impact that -- where there's been lower GP than we have, mainly because of a lower VAS component, so less value-added services. And then, of course, also the FX impact as well. So I think that's probably, what can I say, the most important takeaway from this slide.

If we look at the ocean freight, of course, you can see the GP takes a hit. The VAS element of what we're doing to the value-added services, it's been fairly stable throughout the period. But of course, the freight markup when the rates, they compress, then the markup on the freight side, it also compresses as well. And that's really what we see and what we're doing. Here, of course, the FX part also plays a role, but you will also have the -- of course, the fees at origin or post landed depending on how the trade lane looks that might be in currency where it doesn't have an FX impact. But the line haul and typically either at origin or at destination, you will have FX impact for both of them. So that's a little bit on the Sea freight.

I think on Road, it's -- you see we are almost 1.5x up on the revenue, of course, also on the GP. You have to remember that Schenker has more groupage so more system freight. So there's more infrastructure. So the GP also has to be higher. And then, of course, that we managed, what can I say, to convert an important part to EBIT, is definitely important for us as well.

I think if we look at sort of the gross margin, it will continue a little bit up in the next quarter because you get the impact of basically Schenker being included in the numbers as well and the conversion ratio on a good trajectory. And of course, operating results are also trending upwards. They also have to because we have significant infrastructure in relation to the whole network product that we have.

I would just like to mention as well on the Road side that we managed to divest USA Truck. It was an operation -- hard asset operation in the U.S. and we couldn't operate that with a satisfactory financial outcome. So we found a new owner for it, and we hope that it will be successful there, and we're very pleased that we managed to finish or complete this transaction.

On Contract Logistics, you can also see that we are not 1.5x up on size, but almost and definitely growing our business significantly. Also on the GP side, doing really well. And then, of course, the conversion from GP to EBIT here is also some economies of scale and plus that we have actually sanitized also some of our contracts, et cetera. so that we manage to produce the outcome that we all really need to see from Contract Logistics where you need to improve the return on invested capital. So one thing is actually that we have a plan to reduce the number of facilities. We're working on that, but also then that we drive the operational results up through a very intense focus on productivity.

So really happy to see that this development is going in this direction because I think that's something that we've all been looking for.

So now I will hand over to Michael, and he will tell you a little bit about the numbers.

Thank you, Jens. A quick run-through of the numbers. Yes, just short comments on the slide that we have here. For some of the KPIs of the -- that we have, it's clear that when we have the annual report, you have seen the, well, nice annual report, was announced this morning, that's clearly impacted by the Schenker integration and contribution. We can see that on the earnings, as Jens mentioned. You can also see it here on the transaction costs, which relates to integration cost of DKK 2.6 billion more or less. It's a little bit bigger Q4 due to the fast pace of integration that we have had. And then also, like Jens mentioned, the USA Truck business that we have divested is presented at discontinued operations as was the case for the last quarter. You also mentioned, Jens, that a thing that needs to be taken into consideration here is the headwind that we have predominantly in Air & Sea and the U.S. dollar and the dollar-related currencies.

I think that also is notable here is the tax rates. Luckily, it's not -- every quarter we see a tax rate of 40% like we have this quarter. And this is, of course, not the long or even midterm tax rate, but this is due to the integration that we have progressed so fast. So this quarter is very, very, you can say, unusual for that one. Good to see that on our EPS that we are still on track for EPS creation in 2026.

We jump to the next slide from the cash flow. You also already mentioned, Jens, and thank you for that, that we have had a strong cash flow both in the quarter and also on the year. This is something that has enabled us to repay some of the debt that we took when we acquired legacy Schenker. I think for the year, we've repaid DKK 7 billion and in the quarter, more than DKK 2 billion. So we are on track on reducing our debt.

Another thing that is worth mentioning here is, of course, I'm very pleased with the improvement of net working capital. But I think we also said it last quarter that this is most likely not sustainable to have it at around 0%. Of course, we work hard to have it as low as possible, but the run rate will most likely be in the area of 2% to 3% as we have talked about earlier.

Yes. And also last comment on that side is, of course, the gearing ratio is 2.8x. We are -- as I said, we have already paid back quite a significant amount, and we continue on that journey, so we can head down to a lower gearing ratio than what we see so far.

Then what's more likely interest you the most. This is the outlook for 2026. Jens already mentioned that we have between DKK 23 billion and DKK 25.5 billion in outlook. Of course, it's an uncertainty period that we have had in the quarter and also what we look into with all the volatility that you mentioned, Jens. So this is the best, you can say, guidance that we believe that we can give right now. We expect the air freight and sea freight market to grow around 2% to 3%, in line with the GDP. Then, of course, the yield is something that we are working on. Of course, we'd like to have it as high as possible. We work, like you also mentioned, Jens, implementing the way that we produce in the DSV to focus on the value-add services, and that is hopefully something that will bring us to reach the guidance, obviously. But again, there are uncertainties, which is important to notice.

And the tax rate also this year, in '26, will be impacted by the integration, again, coming back to the fast pace of integration, it will have an impact on the tax rate. And then also, again, Jens, and you have already said it all, but it's important that you are aware that the U.S. dollar-related headwind also, of course, impact our guidance. I think it's -- when we estimate, it could be around DKK 500 million. So that is something that we have to consume or assume into that numbers that we have.

So last page before we go to the Q&A, some of the key takeaways. Fast progression on our most complex integration to date and still maintaining solid financial performance in challenging market environments. Also updated, you can say, time line on the Schenker integration will be done end of year 2026, with full financial impact on the synergies in 2027. The financial performance is challenging, but very well driven, especially by the Contract Logistics and Road business, which have a, you can say, higher ratio of our total EBIT than what we have been used to back in the days. And then the guidance that we have announced today, DKK 23 billion to DKK 25.5 billion.

That was it, and then we have left quite some time for the Q&A session. So yes, please don't hesitate to press 1 and then ask the questions.

[Operator Instructions] Our first question comes from Alex Irving from Bernstein.

Two from me, please. First is on reconciling your messages on the gross profit yields. The 2026 guide of flat in Sea, slightly up in Air is clear, but you also state your ambition to raise yields to pre-deal levels. So there's a 2-part question on that ambition. How will you do it? And when will you do it?

My second question relates to the IT stack in Air & Sea. How are you currently thinking about TANGO and the relative merits of investing in and adopting that platform globally versus eventually retiring it and using CargoWise One globally?

Good. Well, I can have a go at it. I think the GP yields if we sit and look at them, I think all the freight contracts are being renegotiated now. When we looked into it in the past, I think there was a clear tendency on ocean freight that we produced significant higher level of value-added services than you did on the Schenker side, and Schenker had more focus on the freight markup if we look at it. So of course, we want to introduce our way of working and then phase that in so that we basically do more work at origin, produce more services but also at destination. So that will phase in over the year, but we should have the full year impact of these changes, I guess, up towards the summer holiday.

Then of course, the freight markup, if that is basically related to the container rates, then, of course, that will be under pressure. So it will be impacted by that. And I don't really see that the rates, they are coming up, at least not in the short to medium term. So we will see the yields. They will not necessarily be the 5,000 that you had seen almost, but it will definitely be somewhat less.

And then if we take the Air freight I think it's a little bit the same. We have, what can I say, it's not that big a gap on the VAS side that you have on the value-added services on the Air freight. And then you see the freight markup, basically, when we took over Schenker, they had contracted longer than we had. So I think some of these things will impact it. A little bit that these contracts, they taper off, and then we can procure at market. And then we will see how that translates in. But we still believe that, what can I say, the figure around the 8,000 is realistic. Of course, the FX can also play a trick here, which is also part of us being at 7,600 right now. So there are many moving parts, but I think that gives you a pretty good idea.

Then when it comes to TANGO and CargoWise One, I think we had also written in the annual report that we have a data platform behind the platforms that allows us basically to keep both platforms in sync. So today, now, we then produce -- because it is -- we have the customer integrations more already on the DSV setup, but we still keep TANGO running in certain areas. And then I think, as you say, we will have to make a choice which platform to go to. And it's very likely that we will, over time, gravitate towards our own solution. And that's what we're working on right now.

The next question comes from James Hollins from BNP Paribas.

Jens, just on the synergies, I mean, clearly, everyone in the -- so and so talking about the DKK 9 billion, how high is it going to go. Are we officially having to move on from talking about what the DKK 9 billion might be, whether it's DKK 10 billion, DKK 11 billion, DKK 12 billion? And really just think about cost efficiencies, or whatever the hell you want to call it, beyond 2026 and the impact on '27. Or ultimately, is there scope for that DKK 9 billion to be guided, indicated or rather much higher as we go through kind of this year?

The second one, just on asset sales. Clearly, congratulations on the USA Truck. Are we still heading towards sort of DKK 1.5 billion? I think you've talked about historically. Maybe give us some update on the speed of asset sales generally and obviously, how that links to the trajectory for the return of buybacks maybe in H2 this year?

I think I'll answer the synergies. Michael, he can talk a little bit about the asset disposals afterwards. So if we take the synergies first, normally, when we do an integration, you are fairly right, then we have the initial plan, which we present to you and which we are working on right now. Then, of course, once the business plateaus, and we've done the integration, of course, there's an extra, what can I say, step in relation to that, actually, we would like to combine that step with also what we call AI and tech as well because we then take the platform that we've created and basically work on the transformation of that.

If you follow some of us on LinkedIn, you can see that we're actually already moving ahead on that and mobilizing our leadership. We had the whole team -- the whole management team from the top 300 at an event where we start basically to mobilize for introducing transformational ways of working in our company. And it's always hard.

Then do you want to label that Phase 2 synergies? Or do you want to label that AI and tech? We're actually going to talk to you on the Capital Markets Day about that. And we can also label it both, if you want, because it requires that basically we have a solid platform in place and that we can then develop that so that we drive the productivity out. Given our volume, the investment we make in this should, of course, be something that makes a material difference also for the company.

Then the asset side, Michael?

Yes, it's correct. Yes, we have mentioned before that we want to -- on the legacy Schenker, we want to implement the DSV asset-light methodology to a wider extent that has been the case in Schenker. That also means that we have a divestment of around EUR 1.5 billion to EUR 2-ish billion that we are looking at. I think it's important to notice that much of it relates to sale and leaseback, so we'll implement the flexible model with leases that we have on facilities and terminals. That also means that you cannot take for granted that this EUR 1.5 billion to EUR 2-ish billion will reduce debt 1:1. There will, of course, be some, you could say, impact that we take on the leases as well. And it is predominantly sale and leaseback transactions that we're working with currently.

Jens, if I could, is there any chance -- I guess you might say wait till May. If you were to move the DKK 9 billion to a new number based on, let's call them, additional synergies from AI and just working the business together, would you be happy to put a number on what the DKK 9 billion would be at in 2028 these days?

I think we also look into something that is material. I think we are still, what can I say -- we actually have implemented some of it, but we are also, what can I say, mobilizing for the different business areas so that we can project the outcome. But we see that there is room for significant improvement. And it's -- I can put as much on as it's measured in billions. I can say that, but I don't really want to go too far into it now. But of course, the technology today, it allows us to basically perform many of the tasks that we do in a much more efficient way than we could before. And it's clearly something that we embrace.

The next question comes from Cristian Nedelcu from UBS.

The first one, if I could come back to the Air yield in Q4. You've mentioned this -- the contract duration mismatch at Schenker. Could you help us quantify a bit how much of a drag on the yield in Q4 that was? And in relation to your -- as you mentioned on the slide, the aspiration on the midterm to lift the combined yields in Air, could you give us an anchor, what would an appropriate level be, 8,500, more or less, any indication?

And secondly, if you allow me on Road -- on the 2 divisions, Road and Air & Sea, could you please help us? If we focus on the white-collar employees only, could you give us a rough split between production or revenue generation employees versus support and operational employees? What's the rough split in these divisions?

I think if we look at the Road figures, you will have to speak to the IR team to get that level of detail. I think they'll be happy to give you some kind of a guidance on that. If we look at the Air yield, there are certain contracts that drag the yield down. I don't know exactly. I haven't calculated what part of the 8,000 down to 7,600 or whatever that is. Right now, we have 7,600, I think it is in yield in the quarter. So we've not made that calculation. You can get that perhaps from the IR team as well.

What I can say is that right now, we are out contracting for volumes that we have to produce here in '26. And then many of -- some of the contracts actually, they continue all the way into '27. There's been certain trade lanes where Schenker have been very, very long. We've never been as long as that. And these contracts, obviously, given the market conditions, the rate has declined. So they're out of the money. Then you can say, is it an onerous contract? At the end of the day, then Michael can probably provide a little bit for it, but he cannot take the full pain away. And that's basically what you see reflected in the numbers.

Then when we work on it, of course, you have the FX drag. And it's very difficult to put a hard number on it. We've tried it before. But there's a lot of moving parts in that number. So let's say the dollar goes down to below -- we've measured towards Danish kroner, it's now -- DKK 6.33 it was yesterday. So it costs DKK 6.33 to buy $1. But if let's say, it goes below DKK 6, then that will impact the yield. Last year, in Q1, it was more than DKK 7 to the dollar. So when you translate the income into Danish, it means a lot.

So the yield guidance here, we can see that there's less VAS, we can lift it on that. We're going to do that over the next couple of quarters. And then, of course, the rest is moving parts.

Can I have a quick one on your production cost per unit. If we look pre-Schenker over the last 5 years in Air & Sea, your production cost per unit has increased 25%, 30%. And this is despite the fact that your volumes in Air & Sea have almost doubled before the Schenker acquisition. And this is totally in contrast with the historical operating leverage you were showing when volumes increased. Could you help us understand what explains this development? Is it fair to assume there are some low-hanging fruits in terms of improving productivity in Air & Sea or not really?

I'm not really sure what period you're measuring on right now. Is the baseline the last quarter? Because then, of course...

The last 5 years, the sort of 2019 to 2025 before the Schenker integration.

Before the Schenker integration, I don't know what your numbers are, how they look. I think if we look at the number of shipments per person per day, we've been driving it up. Then, of course, there are other factors if you sit and look at it over this period. I don't know exactly what the baseline is for this calculation. So we have to get the numbers. It's really difficult to comment on, what can I say this -- so I think we will have to get the details in, and then we'll be happy to provide you with an answer and also break it down so that you get, what can I say, the proper response.

The next question comes from Alexia Dogani from JPMorgan.

Just firstly, can we go back again a little bit on the yields for Q4? Clearly, that was a disappointment versus kind of what the market was expecting. Can you help us understand what really drove this? Was it kind of the Schenker underlying, which was driven by the purchasing decision? And customer loss, you're saying there hasn't been anything significant, but GP is coming weaker than expected. So can you help us understand again the moving parts?

And then secondly, very encouraging your comments, Jens, about kind of the AI and tech opportunity. Going through the accounts, you also highlighted, however, as a higher risk to the business. How should we kind of see those 2 parts given what you just said in terms of kind of potential earnings upside?

I think if we look at the GP down, if you sit and look at it, it's clear. If we look at the customer base, just to get this, what can I say, clear, we don't really see any customers that have left us. But let's say, for example, that you work in automotive. It's not a small vertical for us. And let's say, you are a German OEM that produces cars in China. Then, of course, the demand for foreign cars in China has declined quite a bit, and they now procure local cars instead.

So of course, if you sit with that customer, you still have to trade lane. You still have the volume, but there's less volume to move. So that is what we see on some of the accounts that they are down trading quite a bit. So here, of course, automotive is probably the vertical where we've had the most headwind. So it's not that we lose the customer, but that there's less work to be done. Also, many industrial companies have some headwind, of course, not the ones that are related to the technology boom that we see with data centers, but there are many other industrial companies that face some headwind. Retailing has been fairly subdued as well. I think that's fair to say.

We serve some of the luxury brands. They're very important customers for us. I think you're probably also well aware that some of them perhaps have had a period where it's plateaued a little bit for them and perhaps even some of them contracting as well. So some of these areas, you haven't lost a customer, but they ship a little bit less. So that's something that we are feeling.

Then on top of that, for the GP, I think it's fair to say that it's crunch time when it comes to, for example, ocean freight and then, of course, also the FX impact. So if I look at all this, then it really becomes material when you look at the numbers. So I would probably say this is what is going on. It's -- in a way, it's a very rewarding market because you really have to earn it now, and your service has to stand the test.

And then Michael, do you want to say something?

There is also another thing that you need to bear in mind when we talk about yield. We also have some economies of scale for the yield. If we are able to push more volume through, that should also have a higher yield. So I would be careful to draw too much attention to Q4 isolated. But again, we can talk with Investor Relations of some of the building blocks. But lower volume will also sometimes be pressure a little bit on yields because there are some of the facilities that we cannot use to the extent that we want to.

Al and tech, I think it's clear that we have to drive the productivity up when it comes to this. There are domains where we're already doing that, and we want to continue basically to have a significant focus on that because at the end of the day, when the business is consolidated, then we have a certain GP. And then, of course, we have to convert that into EBIT. And here, it is important that we basically embrace technology for that. It's been something that we've been doing for years. It's also part of our ability to acquire a company like Schenker and integrate it. It is, because of the back end. So we're going to continue on that.

And just to help us a little bit with the math, can you give us an indication of the combined sea exposure to VAS, to value-added services, including Schenker? Because if I read your comments correctly, you expect ocean rates to soften in '26, but that softening is offset by an increase in value-added services for the Schenker portion. So if you can just give us the split roughly, would be very helpful.

I would say the VAS that we typically would have given the yield that we have now is probably 2/3 of the GP and then 1/3 of the GP would then be, what can I say, the freight markup in what we have, roughly. Sometimes the VAS has been perhaps down to the 60%. But now I think it's at a higher part because the freight markup is lower. So that would probably be a good indication for you to look at.

Then if you look at the Schenker part, it's probably had 60-40, the other way around for the business. So we then have to lift that up. But I think also the freight markup might decline a little bit on the Schenker part as well. But they would have had a lower GP per unit than we've had overall. So I think that's the building blocks I can give to you.

The next question comes from Ulrik Bak from Danske Bank.

Just a question on your guidance. So given the full year impact from Schenker and the synergy uplift in '26 versus '25, the '26 guidance midpoint suggests negative EBIT growth for the organic business or the existing business that you also had last year. In that context, are you planning any cost measures to the existing parts of the business on top of the, yes, cost synergies?

And then the second question is on the guidance sensitivity on the USD FX. Can you give some ballpark estimates if it deteriorates another 5% to 10%, the USD, what it would mean for your guidance?

Yes. I think if we look at the negative growth, you're completely spot on. This is why we have to drive the productivity up and, of course, introduce more technology, so that we get a higher productivity. I don't know if -- so it's -- we can call it whatever we want, Phase 2 synergies, AI and tech, or if we want to call it something else. It's, in reality, the same we are talking about. We need to increase the productivity, and that's where our main focus is.

Michael will take the other one.

Yes. Of course, there are many moving parts for the USD, but roughly, if we take, you can say, 4% decline compared to what we have in our base right now, that will mean maybe DKK 500 million. So of course, there are some uncertainty.

The next question comes from Jacob Lacks from Wolfe Research.

So with the integration now expected to be complete this year, can you give an update on how you're thinking about capital allocation? Is there a hope that there can be another deal in '27? And then one on AI. Your U.S. -- one of your U.S.-based competitors just talks a lot about AI and is showing particularly strong labor productivity within the truck brokerage business. What segments do you think are the biggest opportunity for you? And are there any applications you're trialing to date that you're able to discuss here today?

Yes. I mean, we would hope there would be a deal in '27. So it's clear we have, many years ago, laid out the way we allocate capital. So let's say we have too much debt compared to our aspiration. We have a target of 2x EBITDA. Then we focus on repaying that debt. The next thing that we do is -- we can also, of course, look at it sooner, but we really prefer that we get the debt down to 2x. Then if we can do something to develop the business and invest in the business and allocate the capital, then, of course, that has a significant focus as a #2 on that list. And then the remaining capital, we want to pay that back to the shareholders at the end of the day.

And I think this capital allocation policy, I don't know, we wrote it more than 20 years ago. And I think we've stuck to it, and I think we've got a great alliance with basically all our shareholders. So I think that's -- yes. So that's basically where we add on that.

And what was the other question?

AI.

AI. There's a lot of talk, of course, of AI. I think if you look into the numbers of many of those companies, I was in Davos, they had AI and then they had another thing they talked about, it was called ROAI, so return on the assets invested. And I think we still need to see that in the numbers of many companies. I think the company you're referring to, you can probably see a little bit on the land-based business in the U.S. You can see that the productivity has come up.

I think if we sit and look at it, where we can get the productivity up is in domains where there's a lot of labor. So for example, for us, we are on the custom side, introducing what we call the AI Factory, where we globalize the way we do customs formalities. We have more than 5,000 people doing that in the group today. We could take a booking domain, which is also an area that we are working on right now and getting in control of and where we can introduce technology like that. Then we transform the business.

We can take a quote domain. It's another domain that is very important as well when you run the business. And take it domain by domain through the flow and basically get yourself organized so that you embrace the technology, not on a personal level. When you introduce technology, you have to understand you can do it on an enterprise level, regional level, you can do it on cluster, country, branch, department, person level. The further you go down into the stack, the less benefit you get of it. This is the reason why I think it's very wrong when people they say, "Well, we got thousands of agents." Because the improvement, if they replicate the same process, is very slim. It has to be something that is done on an enterprise level. This is the only way we've managed to create value. This is also how you transform the business.

So that's a little bit of AI, but I think I'll save the rest for the Capital Markets Day. Otherwise, there will be nothing to talk about.

The next question comes from Kristian Godiksen from SEB.

A couple of questions from my side. So to start off with, wondering about the situation in the Red Sea, how that plays out. So yes, both on your assumption and your guidance and also what to think about it? If you assume a return, what is the opportunity for the increased volatility and complexity that will -- I guess, that will mean? And then I guess, on the back of that, potential further pressure on freight rates from overcapacity and hence the pressure on the markup? That would be the first question.

And then the second question would be on the -- just wondering on what are the main delta in the guidance range in terms of parameters? Is it where you see the most uncertainty? Is that yields, phasing of cost takeouts, volumes or other? That would be good to know.

I'll give it a go. On the Red Sea and how it impacts, I agree that, that will free up some capacity, obviously, if you get the transit time reduced quite a bit. So that will free up additional capacity of the fleet and the vessels. So that will, of course, like you maybe allude to, put additional pressure on the freight rates, coming back to the discussion we had just some minutes ago with Jens and the value add versus the freight pass-through part. But of course, the pass-through part that can come under pressure.

What also though remains to be seen is whether if everybody of the carriers start to reroute again, I think that will put some temporary pressure on some of the ports in Europe. So it remains a little bit to be seen how the impact will be, the way I see it, at least. And then the main drivers for the guidance, it is predominantly the yield factor. I would though say we talk a lot about the yield now, and that is, of course, very clear. And of course, for obvious reasons, right now, our -- roughly 60% of the business is now Air & Sea and 40% is Contract Logistics and Road, which has Contract Logistics and Road, which we've seen quite good pace in Q4. It's a little bit more stable, you can say, environment. But of course, the yield is the biggest swing factor in the guidance that we have.

Just one follow-up on the Red Sea part, just to make sure. So what are your assumptions in the guidance? Is that just as is now? Or what is the assumption there, sir?

Yes, that is as is. That, when we prepare the guidance, that is as is. Our base scenario is as is.

And if you were to give some kind of sensitivity, if you have -- I guess that would be fairly okay to assume that you will have a reopening of the Red Sea, then on the margin, what would that mean? As I hear you, potential more value-added services, but obviously, pressure on markup. So what would that do to your expectations for 2026?

I think you need to put it into spreadsheet because this will be then 60% of the business, and then it will be 50% of the GP, and then it will be 1/3 of the GP. I cannot answer specifically on that one.

Let's put it like this. Of course, if the freight rates come down, it puts a pressure on the freight markup. Then you'll probably have an assumption for what happens and then perhaps you can try to model it like this. Yes.

Yes. But I guess some offsetting factor from potential value-added services and all, the complexity that would mean from the congestion in European ports and the likes, I guess, there's some offset there -- offsetting factor.

I mean a custom export declaration, if you do that. It's an export declaration. A local collection is a local collection. So these things, they are not necessarily impacted by the freight markup. So that's fairly stable, what you're doing, consolidation of freight, freight documentation, preparation in the gateways, et cetera, et cetera. All these things that we get fees for, they are services. So they should be reasonably stable, I would say, or highly stable actually. So -- yes.

And lastly, of course, it remains on how the carriers, they react. They're the ones setting, you can say, the rates on the sea.

The next question comes from Marco Limite from Barclays.

I've got 2. One is on the '26 guidance. So in your guidance, let's say, by division, the moving parts by division, you are saying yields stable in Sea, up in Air, volumes up, Road sequentially improving, Contract Logistics continues to grow. So directionally, all the divisions are improving. Now if I look at your guidance like-for-like, take out FX, take out synergies, basically, you are guiding for '26 like-for-like down DKK 1 billion to DKK 2 billion, but all the divisions are improving.

And then also, if I, let's say, do the fourth quarter, DKK 5.6 billion EBIT times 4 plus the extra synergies, I get close to DKK 26 billion. So yes, why you are basically guiding for EBIT down year-over-year at group level, but all the divisions are improving and the Q4 exit rate is not that bad? This is the first question.

And the second question is on Q4. Now out there, there are some concerns that the quality of your Q4 earnings was not amazing because there was a big beat in CL and Road, miss in Air & Sea. And people are -- some people are stressed that this is -- the quality of the earnings is not sustainable. Can you please explain what is behind the big beat in Contract Logistics and the miss in Air & Sea? Is this group cost allocation more into Air & Sea, less in CL? How we can be relaxed that profitability in CL and Road is sustainable?

Yes. I think, Michael, he can at least start with the guidance and the quality of earnings. Perhaps I can just allude to that beforehand. I think the quality of earnings, if you sit and look at it, I think we have explained what happens in the Air & Sea side right now. I think if we look at the quality of earnings in Road and CL, if you look at it last year, actually, we had a pretty bad quarter on the Road side in DSV. So the baseline is pretty good. The business is 1.5x larger. So if you adjust that, I think more or less that we are operating at the same profit margin as we've done before, perhaps even a little bit lower. Right now, we are rightsizing 2 networks and basically combining them. So I think it's -- there should be some improvement possibilities within the road side when we come to that.

If we look at CL, it's not exactly 1.5x up. but there's not much missing before that. So if you look at the DSV side, where we had been a little bit under pressure, now we are cutting costs, and we are rightsizing the business. We have a margin around, 10% on the CL side. So I'm not sure what the people they are talking about.

Then I think if we look at the Air & Sea side and the yields, I think the yields and the volumes for that sake, as we have explained, it's under pressure right now. This is the reason why the results, they look as they do. But I think we have a plan where we cut cost and then where we are facing the market and where the Schenker exposures. Either the contracts that have been entered into the customers or the procurement contracts that they have had, they run out and then they become, what can I say, DSV standard procedure and standard contracting.

So I think that's, in reality, what happens in the business. There might be a lot of speculation about it, as I can understand. But this is how the business is operating.

Then I think Michael can say a little bit on the guidance.

Yes. Two things. First of all, I think when you look at Q4 isolated and you benchmark towards last year, remember that last year was very strong in Air & Sea, so it's strong comparatives, whereas CL and Road were softer last year. Another thing that you need to bear in mind is that with the acquisition of Schenker, the typical DSV seasonality changes a little bit. So we should have higher earnings in Q4 than what you traditionally in the legacy DSV have seen.

In terms of the guidance, basically, I think it already has been answered earlier in the call where it was roughly around 1 point something miss, you could say, on less EBIT. And I think we have touched upon the reasons of the pressure that we have seen in Air & Sea. And I think that it is -- we have embedded, you can say, slightly reduction in EBIT on, you can say, what you call organic or whatever.

The next question comes from Patrick Creuset from Goldman Sachs.

Just on Road, a couple, please. Just firstly, on the cycle, if you could comment a little bit what you're seeing on the volume side? And also pricing, both from the outside, seem a little bit firmer, firming up into 2026? And then maybe also what you're seeing going into this year in Road from a cyclical point of view, given the low point we're coming from?

And then secondly, I mean, looking at your Road margin at this early stage of the integration in Q4, seasonally low quarter, you're exceeding 4% margin already. And then someone else mentioned your U.S. peer now pushing more into the high single-digit margins. Historically, you've performed comfortably in line, if not above, with said peer when it comes to productivity and EBIT margin. So more structurally, I mean, where can you take this division, I mean, at least directionally without taking sort of -- previewing the CMD. But what's the opportunity here in terms of step change in margins, specifically in Road?

Yes. I think if we look at Road right now, I think it's -- I mean, we have some exposure in the U.S., but it's limited. We have some exposure in Asia, the Middle East, a little bit in South Africa as well. So I'll probably say around 90% of the volume is actually here in Europe, if we sit and look at it. So it is very exposed to the European market.

What we've seen is actually, as we talked about it actually in the last quarter of '24, we saw a lot of pressure, and that sort of went into '25 as well, and I think all the rates they had adjusted at that time. And right now, we don't see that there's a new wave because the margins are so slim, so the market has reached the bottom. So now the volumes, it's perhaps growing 1% or 2% road as we speak. And there's something that tells us that many of these investments that are going to be made in Europe, money being pumped out into the economy. It could lead to a situation where there would be a potential -- a little bit better situation for Road during '26.

Right now, we've not factored that in, but that would be a little upside that we could get. And that might even drive the rates a little bit up because I think much capacity has gone out of the market because it's really compressed quite a bit. If we then look at the Road margin, I mean, if we sit and look at it, we take 2 networks. We take, what can I say, one of them basically out and produce it in the other one. So of course, if you then sit with fixed infrastructure and cost, there's going to be a margin expansion because of that.

And I said before that we need to create, what can I say, a solid return on the invested capital on the Road side. And in order to do so, you have to gravitate towards something that is double digit. It might sound a little bit, what can I say, ambitious, but that is what we need to do. And I can tell you right now, what we are working on is actually a strategic, what can I say, plan where we say we use this zero-principles thinking where we said, "How should the network look?" And then try to not think about what we have today, but which terminals do we actually need to operate the volume that we have.

Because you come out of legacy, you come out of 2 legacy companies, and the infrastructure is probably not sort of matching the requirements that we are having. And here, we see that we should be able to take out additional terminals, additional infrastructure so that we could leverage on what we have, get a higher throughput and then, of course, have less invested capital. And I mean that's why we're all here to reduce, what can I say, the capital that we deploy and maximize the throughput of it so that we get the return that everybody wants.

So that's probably the -- what you're going to hear a little bit more on the Capital Markets Day, but I gave you a little teaser on it.

Maybe it's a little bit audacious, but I remember at the last Capital Market Day where how you referred to the Road business, if you set it up correctly. But let's see what you will say next time we have the Capital Markets Day.

The last question for today's call comes from Cedar Ekblom from Morgan Stanley.

A follow-up question on AI. I know you don't want to talk too much about it and save it for the Capital Markets Day. But your share is moving quite strongly as the call is going on. And I expect that that's got something to do with you sort of mentioning that there is potentially billions of savings to come from AI. And my question relates to how we think about the retention of those benefits, because freight is an industry where historically, at least, when you've lowered your cost to serve, you've had at least some of that being passed on to the customer. So maybe it's a bit more of a medium-term question, but I'd like to understand how you think about sort of differentiating the DSV strategy as it relates to AI, productivity, automation, et cetera, relative to what I'm sure others in the industry will also be looking to achieve.

I think I actually answered that question a little bit, because you can introduce AI in many different ways. I think the way we want to do it is we want to transform the business. So it means that we organize ourselves in a different way on enterprise level. So let's continue on the customs example. So beforehand, customs could be handled either on a desk or by a person, sometimes in a department, sometimes on a branch level, sometimes on a country level. Today, we move these people that do that into a hardline organization that basically uses technology that is very advanced. And then the people that sit at the fore water, they get an SLA. So they get a service from somebody else instead of producing the thing themselves.

It's very hard to drive those changes in 90 countries and get -- create a global organization for that. So here, we use the change capacity and the governance model that we have to create that. I think many people are reluctant to make those kind of changes, but this is the only way you can capitalize on the technology. So then it's how much change capacity do you have. We have to get there first. And the people that don't make that, they will have -- it's not AI that is the problem. It is your colleague that embraces AI in a better way that is the problem. And we believe this is the better way. So we want to be the problem for everybody.

Okay. No. I've got a little cough, but I actually wanted to finish off by thanking for your interest. I would also like to thank all the DSV employees for their hard work, all their efforts. It's been a remarkable quarter and a remarkable year, and I can't thank you enough and also our customers for their trust. And we look forward to catching up again and speaking to you after Q1. Have a good day.

Ladies and gentlemen, welcome to the DSV A/S Q3 2025 Interim Financial Report Conference Call. I am Hillie, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jens Lund, Group CEO. Please go ahead.

Good morning, everybody, and welcome to our Q3 results call. We look forward to a good session where we go through the presentation. We will -- the format will be the same as usual. Michael and I will say something in the beginning, and then we will do the Q&A session.

We will quickly go to the forward-looking statements. Please take your time to read it. It gets longer and longer. We will soon need 2 slides for that one we've been discussing. But I'll skip that one and move on to the agenda, which is the same agenda as we normally use. And also, therefore, I will quickly move on to the next slide and talk a little bit about the highlights of the quarter. So I think it's very clear that we are basically seeing good momentum on the Schenker integration. It's, of course, the most important topic that we have right now. It is to ensure that the integration continues to gain momentum. And I think that's also what we see.

I'm particularly fond of the fact that we've sort of done really well in relation to the customers. So I think the feedback that we've received on the integration is very positive. And we've seen that there's been very little attrition. So that's definitely an outcome that we're very pleased with.

On the financial performance, I think the numbers, they speak for themselves. Of course, it's now with a full quarter of Schenker numbers in there as well. There's still a lot of ground to cover, but I think we are off to a really good start when it comes to the combination of the company and the financial performance.

On the deleveraging, yes, I think we've now started to reduce our debt and just shows that we generate cash flow, and that means that there's substance in what we are doing. And then, of course, our guidance, we now have narrowed our guidance. Michael will talk a little bit more about it. But I think it's basically good to see that we stay within the range that we guided at the beginning of the year. And then lastly, I would just say on the execution of the synergies.

I'll come on to that on the next slide. But of course, at the end of Q1, we saw that we had a plan, and we presented also a time line we had a lot of uncertainties in this plan. We've managed to reduce the number of uncertainties and also basically then been able to update the plan so that you can see there are new time lines. And I think I would just like to mention that we said we would be done with 15% at the last call. Now we say we will have 30% done before the end of the year. And also the next column is increased from 50% to 70%. Not all plans are finalized yet.

So as a consequence, we might -- this is what we know. This is what we have confidence in. We, of course, are working on doing it faster, and that might be the case. But this is what we know for now. So we're very comfortable showing you this as well. I think if we look at the integration itself, I talked about that we set the organization. It's very, very stable, the organization. We are pleased with that. I think, as I said, the customer dialogue, it's something that is really rewarding because it's something that we put extra effort into this integration. I think if we measure the previous integrations, we saw that we needed extra focus on this. And then I think the Country go-lives, they are progressing really well. We are live now in 13 countries. This is where we physically move the people in together that we -- both in the offices, but also in the operational side.

So it's a lot of work that needs to get done. It's actually steered by Michael, who is doing a wonderful job on this together with the team. And then, of course, I think the back office functions, here, we also consolidate the functions. It's going really well. And then, of course, we can see that on the white collar side, we've reduced more than 3,000 headcounts as a result of the sort of the combination as well.

I'd just also like to mention that we expect to go live in Germany on the 1st of January, as we stated also the last time. And I'm really proud about the work that is being done by the team there, both on the DSV side, but also the Schenker side and the constructive approach from the employee representatives, where we basically have an ongoing, of course, what can I say, open dialogue, but still in a constructive way so that we find results. Yes. I think the finance figures you could probably read yourself and the transaction costs and the expected synergies, they remain unchanged. I think if we look at the financial highlights here, we see the GP is up. I mean, at the end of the day, this is really what it's all about that we produce some more GP.

We see that the EBITDA is down, and it is because the productivity, what can I say, needs to increase as well. There's one thing that I would like to say, and I'll also point that out when I come to some of the divisions. The transaction size that we are handling, it gets smaller when the economy has a difficult time. So the volumes sort of that are shrinking a little bit when we are down trading, it doesn't necessarily mean that there's fewer shipments.

So we need more shipments to flow through the system, and we have a certain number of transactions per person per day. So on the productivity side, we're actually doing fairly okay, I would say. So it's just a little bit complex to see through some of those numbers here. But when we look at it on the management side, it's under control. We're doing a great job. And I'm very confident that we will see when the synergies start to kick in that we will also see progress on the EBIT side.

If we move to the next slide, we come to the Air & Sea division. Here, I think we've always said it's GP that matters. we need to produce some gross profit here. And that's also what our focus has been in this quarter. If we look at it, we can see that the GP is up. The EBIT is down. And here, if I look at both air freight and ocean freight, we produce more shipments than we did last year even if the volumes have evolved as they have.

And of course, it puts a little bit of pressure on the conversion ratio as well as the lower productivity we see out of the Schenker organization. Not that we're not going to get the Schenker productivity up, but it's just when you combine, it takes a little bit of time before we get there. And that, of course, has a consequence for the operating margin as well. But once then the conversion gets up, the productivity gets up, of course, the margin will adjust itself.

If we look at the air freight, I think we are actually pretty pleased with the developments in the GP. It's really been solid for us. It's the last quarter where we can separate the DSV and the Schenker volumes because, as I said, we are now live in 13 countries, and it means that we cannot separate the hot and the cold water anymore when we do the reporting. So we give you these numbers, and you can see we've had the yield discussion many times, and it's actually holding up pretty well.

One of the reasons why it's also holding up is, of course, as I mentioned, and say, you do more shipments in order to achieve, what can I say, the tonnage that we are talking about here. And we all have to remember that, let's say, you do an air freight shipment of 400 kilos or one of 800 kilos. It's the same work that the forwarder needs to do. So really on the productivity side, I think actually, if we measure on the KPIs internally, we can then have aspirations that we need to drive the productivity even higher, which we also have. But I'm very satisfied with the productivity measures that we have.

And we're monitoring these all the time. If the market develops differently, of course, we will need to react on it. On the ocean freight, of course, that's the toughest market that we're in right now. It's crunch time. We see that basically GP is down. Of course, there's some FX impact in that as well, which goes for all our numbers. Michael will come back to that, but there's quite a bit of headwind on that.

Also here, we've had the yield discussion many times. We've been discussing the value-added services that we produce on a shipment. And I think it speaks for itself that now we do more transactions per TEU. We've also had a lot of focus on the LCL market now for years as well in order to protect what can I say, our GP and have a value proposition where we are in control of the infrastructure. So I think this is very clear in the numbers as well. When you look at it, that this is now what is playing out as well.

Then we come to Road. And of course, it's nice to see that in absolute figures, we are making progress. Schenker's road organization is a really good road organization, strong footprint in the Asia Pacific and also a solid footprint, a very strong footprint in Europe here, we are the market leader. So if we sit and look at this, then of course, there's a lot more to come, but we are on the right way. If you look at these numbers, they include both July and August, which if you have a large scoopage network means that you will have a lot of fixed cost and not as much income generated in each month.

So delivering a result of there to round it up to DKK 800 million, it's actually quite an achievement from the road organization that I'm very happy about as well. On the shipment side, also here, we are flat. It's flat neutral, what we are seeing here as well. So it's really also well done, I would say. Then we come to CL. And here, we have produced almost DKK 1.1 billion. So definitely quite a bit up compared to what we've seen before.

Here, we see that the Schenker contribution is impressive as well. Actually, we've been doing fairly well on the EBIT side on the DSV anyway previously, as you can also see from the comparable figure, which only includes DSV. But the Schenker is definitely also contributing with both footprint, with skills, with competence. And in combination, we have a really solid value proposition.

And then we have the problem that which is something that we have a ton of focus on, we need to increase the return on the capital that we deploy because, of course, it benefits the other divisions that we hold cargo that is being moved in our air freight network, our ocean freight network or our road network. But we need to generate, what can I say, a higher return. We simply -- it's unacceptable where we are right now. But the division is really taking this into consideration when doing the integration, and I feel very confident that they are doing something about it that soon also will be visible in the numbers.

So with that said, I would really like to hand over to you, Michael, so you can give a little bit of details to some of the numbers as well.

Thank you very much, Jens. And then if we look at the Page #12, which some highlights of our P&L. Like Jens mentioned, we have a stable performance in the quarter. And of course, Schenker contribution positively. It's also -- if you look at our -- the net result is, of course, impacted by our special items of DKK 1.1 billion. This is, as we've announced also related to the Schenker integration.

Then I know that we have been talking with some of you guys at earlier occasions. We have, you can say, moved our Road activities, legacy Schenker that we have acquired that was moved to discontinued operations for the ones that are really into details in the spreadsheets.

Another thing that Jens mentioned, and I will also touch upon that in the next couple of pages, maybe it's the FX headwind, which is, of course, impacting predominantly in our Air & Sea business. Next is also worth mentioning is that our tax rate is very high these days, which is due to the integration of Schenker. It's a little bit higher than what we have anticipated previously is because as we can see with the synergies and so forth, we move a little bit faster than what we did last time. So we are really picking up in pace, and that's reflected in the tax rate.

Our diluted EPS is stable as compared to last year. But if you look at compared to last quarter, it's actually kind of picking up. And if you then even there to see if you can adjust for the tax rate, then we would actually already be in a positive mode on that one. It's clear that the ratios is, like Jens also mentioned, it's impacted by the dilution impact of the acquisition of Schenker, but we are working on getting that improved.

Once again, on the next page, on the cash flow. Once again, we have actually a strong cash flow, more than DKK 4 billion, cash conversion ratio of 96%. We're very pleased to see that. Our net working capital has improved quite a bit as well. It's below 2%. I cannot promise you guys. Of course, I will do whatever I can to maintain that low level. But as we said earlier, it might be, you can say, to calculate around 2% in anything.

We've also been able to reduce the debt by the strong cash flow that we have. So we have reduced our debt with DKK 4 billion. So that also seems to be nice. It is nice and that we are on the right track, as you can see. So that is great as well. Then the next page, 14, is on the guidance, we are very happy that we are able to keep guidance and, of course, lowering the upper range of our guidance. So now we will expect that we will land in DKK 19.5% to DKK 20.5% for the full year.

Jens started out by saying that in this number, of course, we have to bear in mind that we have sale -- headwind, sorry, for the FX of around DKK 500 million as a headwind on that one. We also increased our expected synergies for the full year to around DKK 800 million from previous DKK 500 million to DKK 600 million. That's a change in there as well. And also given the pace that we have also means that we increase our expectations of special item costs in our P&L. And again, reflecting the pace on integration, the tax rate will be a little bit higher. It's because, yes, there are tax consequences when we do these kind of integrations.

So long term, for the tax rate, we expect that we will be back in 24% area next year, hopefully. Then for the -- you can say the market outlook, it's still impacted by the macroeconomic and geopolitical landscape. So we still expect that uncertainty to persist for the next quarter. So we expect to see, you can say, growth below GDP for the next quarter. That's what we have embedded into this guidance that we have. But overall, again, we are very pleased that we are able to keep our guidance in the way that we have.

And then, of course, on the Road and on the Contract Logistics, as Jens already said, it's a stable performance that we expect to continue for the remaining part of the year and hopefully also in the next couple of years, even better.

And then back to you, Jens.

Yes. As Michael said, on the key takeaways, I think one of the things is when we take the Schenker integration, it's really all the experience that we have, all the support that we get from the various parts of the organization. They know what they need to do. It's really well done what is in there. But I think it's also a playbook that we've now done many times that everybody feels comfortable with and also to you, investors that have support us, thank you for that. That's really what comes out of it.

At the end of the day, this momentum that we now see on the integration, it's really good to see. Then, of course, as an investor at the end of the day, what you get is earnings per share. That's our focus. Right now, of course, we are driving the earnings per share up. And of course, at a certain point in time, when we also delever the company, we'll probably also use the normal tools on the capital allocation to support that thing. This is our core focus that we drive the EPS up.

And I think we are looking into a very interesting period when it comes to EPS development. Then, of course, the guidance, I think Michael talked enough about that, so we should quickly go to the Q&A session because I hope that you have many good questions for it. So please go ahead with that.

[Operator Instructions] The first question comes from the line of Dan Togo Jensen.

Congrats with this report here. Maybe if you can elaborate a bit on your expectations here for Q4, especially the low end of the guidance range of DKK 19.5 billion I mean you need to make DKK 5.5 billion in the fourth quarter on my math, and you made DKK 3.9 billion last year. So that's a bridge of DKK 1.6 billion. Schenker contributed DKK 1.3 billion in Q3. Probably this will be more in Q4 and due to seasonality.

And then you have synergies on top, which you have just lifted. So in my mind, this alludes to a somewhat negative contribution from the organic business in Q4 for DSV. And bearing that in mind, I seem to remember you have quite easy comps, at least in the Contract Logistics and in the Road business. So there must be something weighing significantly down in Q4 for you to maintain the DKK 19.5 billion. Just to understand your thinking of the low end.

Yes. It's basically volume, isn't it, on what can I say in particular within Air & Ocean that we are talking about. That is -- I think the yield will be okay. You've seen that we are a little bit down on volume, I don't see that trend really change. So compared to the original guidance, we probably had anticipated that we would have a growth in volume now we have a decline. I think that's the major contributor, I would say, Dan.

The other things that you're talking about that we are doing well on -- yes, of course, the FX side is big as well. I think that's important to mention. But on the CL on Road, we're doing okay. And I think basically, if you say volume and FX, that's sort of the main explanation when we look at it. Yes.

And lastly, for -- sorry, then for the -- yes, I fully agree, of course. But last year also, we need to take the seasonality of the legacy Schenker into consideration.

Yes. But shouldn't that pick up a bit in Q4 given the Road business, I mean, where Q3 usually is.

That's one thing you have to remember that they have big group network. So there are many days where there's no production in December. And that's -- I can tell you, we are also learning something new about fixed cost when it comes to that. So we're really trying to figure out how we can organize this in the best possible way in how many days we produce, et cetera, and what's the optimal outcome on that.

We're putting significant effort into that. It's going to be less than what we've seen before, but it will probably take a couple of quarters before we really get that structured in the right way. So it is on the Road side, it's a hard one, I would say. It's going to be good in Road here in October and November, really good. And then we're going to get a tough December. But whether we -- the range is the range then. It's from DKK 19.5 billion to DKK 20.5 billion. So if you are a little bit more optimistic than the people that are -- there's a middle of the range as well, if you know what I mean. And I think I won't say more than that.

Understood. And if I'm allowed, just maybe another question here, digging into the verticals. Could you maybe elaborate a bit which are the strong verticals for you here? Is it firm the growth you see, for instance, in technology, in pharma, maybe aerospace, defense and are yields holding up in these verticals?

I would say that yields are definitely holding up in the verticals you're talking about. It's probably also some of these verticals that do the best. You would perhaps have more, what can I say, we are a big player in Europe. So of course, automotive is a tough one for us also knowing that Schenker is a German company as well, very involved with those companies as well.

That's, of course, something that is a little bit tough these days and also some of the industrial areas, the capital goods also a little bit under pressure. I would say. So -- but the verticals, of course, are tech vertical, very strong vertical out of Schenker. We had focused on it as well. But in combination, it's -- we have the broadest service offering of all the players in the market. So of course, we are making good progress there. And it's really good to see. It's helping us a lot when we then see troubles in other verticals.

The next question comes from the line of Patrick Creuset from Goldman Sachs.

Congrats on the strong front also from me. Just a couple of questions. The first, just on synergies. I mean, it seems like you're harvesting the DKK 9 billion ahead of schedule. And perhaps can you talk a little bit about some other sources of opportunity, let's say, that you see within the DSV business? I mean, updated thoughts on procurement synergies, for example, and also the latest thinking on Star and Tango IT system rollouts.

And then, Michael, you mentioned the strong cash flow leverage reducing. I think you previously talked about bringing the buyback back perhaps in H1 '27 and I appreciate it's early to talk about it, but any thoughts there, updated thoughts on time line on when you might be in a position to return capital again depending on how you continue to progress?

Good. I think I'll take the first couple of questions. Michael, he will talk a little bit about the buyback as well. So I think if we look at the synergies right now, I think what you are alluding to, Patrick, is basically when we do an integration, then we make an initial plan like we're doing now, then we combine the companies.

Then once you have it combined, and I think this is what you're thinking about, then you're thinking there's actually a little bit of things we should adjust on top of that. These are not sort of in the plan, but they will come sort of once we've done the other work. I think it's a little bit too early days to say something about that. But let's say, 2 quarters down the road, we should have a much better view on how the combined DSV will look because then we will have done, as you can also see from the plan, quite a bit of the work combining the countries as well.

So I think that's what we can say on that. But of course, we really working hard just to obtain the synergies we get right now, and then there's going to be a next step. If we take the Star or the Tango CargoWise One debate, I think the plan is that we now to harvest the synergies roll a lot of countries onto the CargoWise One, but also keep some volume on Tango.

Basically, we can backfill both systems with data from each other. So we're not necessarily losing a lot of productivity on that. Then, of course, we have then to have a debate which direction are we going in. And I think we will have to come to a conclusion on that as we go along. So -- but so far, we're producing the volume and we are shifting. We have a data platform where we can exchange data between the platforms seamlessly.

So it's not a lot of productivity that we are losing. It also helps us a lot on the customer integrations actually that we can do them, what can I say, in a more what kind of plannable way I would call it. Yes. Then Michael, short term.

Yes. Thank you, Jens. And Patrick, also thank you for the question from my side. Of course, the cash flow and how we can return into share buyback area is something that we follow up very, very closely. Believe me, I also want to go there as soon as I can. We have to look at the next couple of quarters.

And of course, if we continue the strong cash flow as well, then we will, of course, like we always do, take a look at it quarter-on-quarter and then see how is our gearing ratio, how is the rating agencies consider it. And then we will have to take a relook hopefully, within a couple of quarters.

We have now a question from the line of James Hollins from BNP Paribas.

Michael, if I could start with you, if I could just get some, if possible, clarity on the synergies within 2026. I know a lot of investors are crying out for it. If we do some basic math on 30% integration end of this year, 70% end of next year. We took the midpoint, that will be something like DKK 4.5 billion of the DKK 9 billion. I was wondering if you could just give us your thoughts on synergies within 2026 that will impact full year '26 EBIT?

And secondly, Jens, you talked about very little attrition in your customer or basically customer retention is strong. Is it sort of better than expected? Is it as thought? And I know you talked previously about you've done the top 275 customers. Maybe to run us through how that's going with the, I guess, smaller customers in terms of attrition? And if I may, are you planning at Capital Markets Day anytime soon?

Yes, I will take the first one, and then Jens will take the second one. In terms of the synergies, what I think that you can expect is that like we also have written for the phasing, if you do some math and try to predict it, you would see that 2026 should be around DKK 4 billion, you can say, in synergies that will have an impact on that one.

Yes. Then I can talk a little bit about what can I say, the customers. I would say that, yes, it's correct that, let's say, on the last call in -- after Q2, we sort of initially focused on the larger customers. Of course, that's cascaded down now into the organization so that there's basically a focus, what can I say on what we call A, B, C and D customers where we go and basically have a conversation with all those customers depending on their size and service requirements, et cetera, explain them what is -- the customers, they want to know what does this mean for us.

Do we get new rates? Do we need a new contract? Do we need a new integration? Who's my new contract person? What does the team look like? Where is the office, all these questions we have to answer for the customer. If you are proactive and do this, then very soon, we can start to explain them what is it that the combined company can do for them. And this is, of course, where we are much stronger than we were before being now the global market leader. Of course, we have a strong offering to present to them. And actually, we've seen that they've responded very well on that, that we have a very structured approach on this.

And I think it's also visible in our numbers that you see that in reality, we've managed to keep the customers, yes. We are down trading because the shipment size, what can I say, on volume in TEUs or tons because the shipment size has decreased. But apart from that, I think we've really stood our ground on this integration. And I think it's thanks to the efforts, what can I say, of the whole organization that wanted to prove to the market that we could up our game a little bit on this one. So I think that's all been very good. If we look at the Capital Markets Day, yes, there's going to be a Capital Markets Day.

We need to come out and explain better what it is that we're doing, what's our strategy, what's our plan, what's our thinking, both on generative AI, for example, which is a big topic, what's our thinking on the integration and the strategies for the divisions. So we're really looking forward to that. And I know that our IR team, they are already working hard on planning it so that we will have a very good agenda for you.

The next question comes from the line of Alex Irving from Bernstein.

Two from me, please, both on Road. First of all, you pointed out the implementation of uniform digital platform. What is it specifically that Star can do for you that Roadway Forward could not? Second, you suggested at one point, it might have been last quarter that if you really excel in Road, a double-digit EBIT margin might be achievable. Is that still achievable? And if so, what would be the path to that? We're talking just structural cost reduction? Does it require a change in the business mix, say, more groupage?

If we take Road and Star, I think when you have to create a system like this, it's very much -- it's not a technical problem. It's a governance problem. How do you want to operate your business? I think Schenker has been on that journey on the groupage side and also managed to divide their business perhaps sooner than we did, whether it's a system freight, groupage, as we also call it in Europe. But let's say, shipments between 30 kilos and 2.5 ton or 2 tons or something like this, so larger than a parcel, but not, let's say, a real LTL shipment where you go direct to the customer.

You will then also have the FTL business, which is like the full truckload. We call that direct. Schenker had separated that harder than we had in DSV. So we try to solve both products in the same structure, whereas Schenker really focused on the groupage. And that's really how Star came about. And then they have done a lot of change management in the countries where they're rolling it out because there's a lot of local habits that we have to weed out so that we basically work on one platform.

Then you will have what we call, it's like for Air & Sea, you will have a single file system where you don't have, what can I say, different systems with different types of data. at both end different conventions for data and then you need human intervention. And then all of a sudden, what can I say you produce fewer shipments per person per day. It also gets harder to plan. And there are many things that are very difficult, the more complex system landscape you have.

So this drives lower productivity. We replicate the same process over and over again. So we have also to say that Schenker, they have done better than separating these 2 things. Actually, we can also do the other stuff on the Star platform as well, the direct business, but it's perhaps supported a little bit less than on DSV, but it's still workable compared to what we have.

And of course, if you have these things, then you can actually go to the next stage as well where you start to consolidate some of the efforts so that you go to a more domain-driven approach where you will say, listen, there's a quoting domain. There's a booking area where we handle this kind of could be called customer service. You could also then go to the Westmark cargo events, whatever you want to call it also customer service at the end of the day because now you'll have all this data in one system.

And then, of course, on top of this, with a new technology, which was not what I was sort of factoring in at that stage. But of course, here, that will drive a ton of productivity to go into domains. But on top of that, you can probably put more agents in than we are using today. So that can drive the productivity even further. So it's really the technology is there. It's how much change can we impose on the company. This is the limitation.

So it's a governance issue like it always is, there's nobody within our industry that has access basically to technology that the other people don't have. So it's how you run your company that decides what the financial outcome will be.

We now have a question from the line of Alexia Dogani from JPMorgan.

If we start just on the synergies, you talked about DKK 300 million of impact in the third quarter. Can you just confirm it's all cost and there's no dis-synergies based on your customer attrition point? And then subsequent to that, at what point will you have more certainty that the dis-synergies that are within the DKK 9 billion are no longer valid, and we could be looking kind of at a better outcome?

And then if Michael could just clarify, when you talk about -- you mentioned DKK 4 billion of synergies in 2026. Is that right? Because before we've talked about the midpoint of the exit rate, 30% in '25, 70% in '26, midpoint is 50% of 9% is 4.5%. So I don't know if you were thinking year-over-year or absolute. I think that's worth clarifying. And then my second question is on Road. Can you discuss a little bit more fundamentally the operating leverage in this business?

Clearly, you're taking a lot of cost out at the moment as we have seen through the D&A reduction you've reported. And how will that kind of improve operating leverage when volumes start to recover and pricing starts to go through? And yes, giving us a little bit of color of the actions you've actually taken to really reshape the cost base of that business or I guess you're starting to make. That's it for me.

I can start with the synergies. Maybe just to be clear, you said, it's right that we say 30% for end of year. That means for the full year next year, we'll have DKK 3 billion. Then that's -- you can say that one. And then we have the synergies that we already have right now, which is DKK 800 million-ish. And that you can say, DKK 3.8 billion. And then you have -- you're right about the midrange.

I though I would say that the synergies that we harvest the first might be the easiest. So I don't think necessarily you can take a linear approach on that one. But I can't promise you that we will deliver at least the DKK 4 billion, and we will work whatever we can to make that faster and higher, of course.

Yes. Then we talked about the dis-synergies. I think we will really know through the tender season, how that is all playing out. Normally, we've seen actually quite some attrition right now in a normal integration, which we are not seeing. And then, of course, it's the tender season. It's the second test, if we want to call it like that. So I think if we look at it right now, we are off to a good start, and I actually think we have to have the aspiration that we also make it through the tender season and then we can really start to focus on the growth.

So of course, all the competition is focusing on us. Right now, we are the market leader. We also did that when we were chasing. So I think -- but I'm comfortable, as you can hear. Then I think the operating leverage on Road. if you look at, let's say, the road network, it's both a physical network, but also a back office thing that we're seeing. And as an example, Schenker, they can produce basically all DSV volume in most countries in their network. So of course, there was too much capacity available. There might even be areas where we still have too much capacity even if we've combined entities.

So we are rightsizing that right now. Then, of course, we are looking at whether we need to produce all 100% of the volume in our own network or whether there might be some areas at very remote destinations where we could ask somebody else to do that. That would then limit the physical infrastructure quite a bit. In the offices, we also need to operate at plus index 90 on the capacity side, even if we are where we are right now. And then when we get price increases, I think there's only so much volume we will be able to produce. We might then need to might need to -- what can I say?

We might need to say that we can grow a little bit less because we need to take some of those fluctuations out of it and then just increase the prices a bit more because today, we've actually had way too much capacity, so we could handle the peaks, but it's way too expensive in the troughs. So that's in reality what we are focusing on right now on the Road side.

The next question comes from the line of Ulrik Bak from Danske Bank.

So in terms of the synergies and the integration process, what is it specifically that has progressed faster than planned? And have you identified other areas where we could potentially see a further acceleration of this synergy harvesting? And then also the DKK 300 million in synergies in Q3, DKK 800 million for the full year as well as '26. If you can provide some guidance on how this is split among divisions, that would be great.

Yes. I think if you look at the speed of the integrations, I think if you see what we have moved last time, we said 15% end of this year, and you can say 50% end of next year. Now we have increased to 30% this year and 70% next year. I think it's not that unusual. Remember the size of Schenker that we have acquired. I don't think it's that unusual that you need to kind of get a little bit of a grip on what it is that you have acquired and how you can plan for it.

It's a complex thing to migrate 85,000 people in more than 80 countries into our infrastructure. legally as well as organizational and IT as well. So it takes a little bit of a time. That's also maybe why you said last time that it was progressing slower than at least for some of you guys have anticipated. I think what we have found out now, we know what we are dealing with. We have identified all the different scenarios from a system perspective, organizational perspective.

So now we have put that into a plan that we are executing on, and this is where we are doing fairly well in execution in DSV. So that is why we are moving faster than what we initially thought through actually. And then in terms of finding, I think Jens already touched upon that in whether there are more synergies elsewhere to come. Right now, we stick to the plan that we have promised to deliver the DKK 9 billion in yearly savings, and we are very committed to deliver that. And of course, to be there as fast as we can.

We now have a question from the line of Kristian Godiksen from SEB.

A couple of questions from my side as well. So first of all, maybe could you comment on the stabilization you've seen in growth that you comment on in terms of what to expect going forward, both in terms of margin progression and maybe also in terms of which kind of price increases you expect to -- you in the market to implement in this quarter? And then secondly, just a household question. Wondering if you could comment a bit on why the legacy Schenker yields are down more, both in terms of sea and air freight than the legacy DSV yields?

If you take the yield question, I think Schenker had, what can I say, a tradition where they were a little bit longer on the procurement side. In certain markets, it had benefited them. And as you can remember, last year, perhaps that was a situation like this. Now if you are longer in this market, of course, then it's -- when the rates are going the other direction, then it's perhaps a different scenario.

So I think that will be the explanation to that. I think on the operational side, it's fairly similar volume that we are producing. Then I think if we look at the road side, I think we need to think we don't want too much capacity. We want to have the capacity that is required in the market. This is a journey where you have a ton of infrastructure that you have to rightsize so that you get there. It's part of also certainly, it's also part of me having said that on group, we need to make much more money.

Then I think the price increases that we go out with today, perhaps DSV stand-alone, Schenker stand-alone had an aspiration that we need more and more volume. Actually, we got sufficient volume now to have a European network. So we can sit and then look at what's the service, what's the quality of our product. And then, of course, we can then go out to the customers and say, listen, this is a quality product. And this is the SLA that we can deliver to you, and it comes at this price. So we've been out now to our customers basically because also there's pressure from the subcontractors, they want more money. So that with the service catalog, this is a service you get. This is what the price is.

And it's, of course, always market driven by the subcontractors at the end of the day. But this in combination then is what we present to the customer. Then I think on the smaller account, if we sit and look at it, of course, we can present that because we don't necessarily have a long-term agreement. But on the customers that we have a longer-term agreement with, it's going to come when we have, what can I say, the freight negotiations basically for the renewal of the contracts. And that's typically happening into the new year. So there's still some bound to cover. But we are off to a good start, and I can see Michael has something he will add.

I think also one thing that I don't think that you should underestimate when we talk about stabilization. Remember that legacy Schenker has a huge road organization. And like we also touched upon last time, we have now set the management team, both globally, regionally clusters in the countries. And the team has also worked dedicated to find some of the recovery plans as we call them. So I think that's where we can see that now we are getting hold and grip of these kind of things that also pays into the frame of why we can say that it is stabilized.

Okay. That makes good sense. And just a very quick follow-up on the impact from the longer procurement of volumes from the legacy Schenker. When will we see that impact fade away?

I don't know. It's hard to quantify. I think basically that it's an ongoing exercise that we're talking about. So I don't necessarily -- I don't think we're going to move backwards on the profitability on the road side. We're going to move -- make progress, consolidate and take idle capacity out that is not needed. I think that's -- on the procurement side, we're going to drive, of course, that very efficiently as we've always done and make sure what can I say, we have wholly procurement, let's say, the terminology that was used and think it was wholly management. I mean these 2 words, they are quite different, aren't they? Because it is a procurement exercise for us. We have to deliver the right cost to the customer as well.

And of course, it will follow the normal, you can say, renewal of the contracts. So...

The next question comes from the line of Muneeba Kayani from Bank of America.

Firstly, I just wanted to ask around yield mix at Schenker. So Jens, in the past, you've kind of given us a breakdown of the value-add mix for your -- for DSV stand-alone ocean and air yields. How does that look like in Schenker? And kind of along the lines of the previous question on Schenker yields, kind of how do we think about that mix and movements with freight rates going forward? So that's the first one on yield.

Secondly, around cost cutting. So your competitor today announced a cost-cutting program. I think what you've said is you need to -- you're looking at it, but haven't really kind of pushed that kind of on top of what you're already doing with the Schenker integration. So what do you need to see to do more of that? And kind of how are you thinking about that? And just a quick one on real estate sales. You've talked about that in the past. Where are you in that process? Can you give us a sense of the time line and potential amount from Schenker real estate sales?

I think if we look at the Schenker yield, it was lower. I don't necessarily think that Schenker had the same focus on selling, what can I say, upselling the services than we had. They had perhaps more an approach where they were also a little bit long short in the market depending on their expectations. We have a clear way forward where we basically don't take positions as a company. And you've seen this play out in the industry as well.

That also then leads to some companies then having, what can I say, to make certain decisions on capacity as well when you perhaps have some focus on the yield side that drives what can I say, financial outcomes that are not desired. If we look at our company, we rightsize the company all the time. There's natural attrition. And right now, we can stick to that. We have our performance KPIs, as I talked about when we run the company. So how many shipments, how many transactions per person per day. This is something that our organization, they look at all the time.

And we can see what we do on the Schenker integration and with our expectations for the number of shipments we have to produce and the productivity expectations that we have that we don't need to do anything else on top of this right now, which is great. Our staff, they know exactly what we're doing. We're focusing on the Schenker integration and then the normal course of business. We then -- if there's an area here or there where we need more or less capacity, this is adjusted as a normal part of operation. And Michael will talk a little bit perhaps also about this, but also about the real estate as well.

I think just a last comment on the -- you say the cost cutting. Now you referred also to one of our competitors. I think you also maybe need to look at the starting point from a conversion ratio perspective and then see what that brings. And like you said, Jens, we are actually looking into, of course, the measures that we normally would take on that one.

And for the Schenker real estate, it's correct that we -- that they have been a little bit more asset heavy than what we have. So we are, of course, looking into getting that to fit into our asset-light model and hence, there will be some divestment of real estate. Remember, this is not something that we have, you can say, taken into our business case. So we are looking into that. And, yes, I think we have also mentioned that in the earlier case, it could be around DKK 1.5 billion that we're looking into. And for timing and stuff like that, we need to go in and find a plan for that one before we can say more about it.

We now have a question from the line of Lars Heindorff from Nordea.

The first one is on the logistics part of the business. Very strong revenue growth in the third quarter, apparently, a sale of a terminal property. I don't know exactly where and the timing of that. So maybe if you could just give a bit of detail how much impact that has on the top line and also on the gross profit in the organic business? That's the first one.

And then secondly, I'm sorry, coming back on the yield questions here. I clearly understand your answer for some of the previous questions on the sequential decline in yields when rates go down in sea freight and how -- depending on how Schenker has been sourcing their capacity. However, in air freight, where we've seen a very, very significant decline in Sinker on a stand-alone basis, we haven't seen a similar decline in rates. So maybe just an explanation why we see that both in sea and in air.

And also, I don't know if you can go that far and maybe give us an indication where you think that yields will continue to decline combined into the fourth quarter compared to the third quarter? And then the last one is just a housekeeping question on USA Trucking, the Q2 EBIT impact now that I'm looking for that, now that you've taken it out as a discontinued business.

Good. I think Michael will start, what can I say by answering some of the questions.

Yes. If we go to the Contract Logistics side, it is, as always, Lars, and you are aware that we have had some property projects, which we also have talked about in connection with our net working capital and so forth. And we have realized one here. And as always, it doesn't really have an impact on our EBIT and our GP, to be honest with you guys. So that's on that one.

For the U.S.A. truck, it's also household, like I said, it's correct that we have now, you can say, classified it as divestment, noncontinued business. We said DKK 90 million on a quarterly. That's the net result, as you most likely know and can see. I think for EBIT impact, it was around DKK 60 million in the quarter.

And then you talked about the yields in ocean freight and air freight as well. I think if you look at the market, what can I say, rates, it's also very different for the 2 products, isn't it? Where it's been declining quite a bit on ocean freight and where it's quite stable, at least the way we see it on the air freight is, of course, declining, but not necessarily at the same pace. So I think this is what drives the difference in outcome, Lars.

I think that was basically -- we are at the end of the session. So I would like to thank you all for your interest and look forward to have some conversations bilaterally after this call. But most of all, I would actually like to thank our employees that are listening in on the call for all their hard work, all their efforts and their dedication. We would never ever have been able to pull this off at this pace and with these results if it hadn't been for all your hard work and all your efforts you've overachieved and just continue that. It's really great fun to be at the company right now. Thank you very much. Bye-bye.