Outlook

For 2017, we expect growth in EBIT before special items of 24-32%. Free cash flow is expected in the level of 3,500 million DKK. Long-term financial targets are reiterated from the 2015 Annual Report.
 
OUTLOOK FOR 2017
(DKKm) Actual 2016 2017 previous 2017 revised
EBIT before special items 3,475 4,200-4,500 4,300-4,600
Net financial expenses* 299 300 300
Effective tax rate 26.7% 25% 25%
Adjusted free cash flow** 1,194 3,500 3,500
 

* Actual 2016 excludes an extraordinary foreign exchange gain of DKK 115 million
** Adjusted free cash flow for 2016 includes DKK 644 million cash impact of restructuring costs

This guidance assumes a stable development in the markets in which we operate. The OECD and IMF project global economic growth of around 3% in 2017, with relatively low growth rates in Europe and USA and higher growth in other regions, mainly in Asia.
 
We expect that the growth rates in the transport markets will be in line with the underlying economic growth and that DSV will be able to take market share in all the markets we operate in.
 
Furthermore, we expect a continued successful integration of UTi and realisation of expected synergies. In line with previous estimates, total restructuring costs of approx. DKK 1.5 billion are expected. DKK 1,002 million thereof were expensed in 2016, and the remaining costs are expected in 2017. The expenses are classified as special items in the income statement. Restructuring costs are non-recurring expenses, for example costs for the combination of offices and logistics facilities as well as redundancy packages. The expectations are based on the assumption that currency exchange rates, especially the US dollar, against DKK will remain at the current level.
 
Forward-looking statements
This Annual Report includes forward-looking statements on various matters, such as expected earnings and future strategies and expansion plans. Such statements are uncertain and involve various risks because many factors, some of which are beyond DSV’s control, may result in actual developments differing considerably from the expectations set out in the Annual Report.
 
Such factors include, but are not limited to, general economic and business conditions, exchange rate and interest rate fluctuations, the demand for DSV’s services, competition in the transport sector, operational problems in one or more of DSV’s subsidiaries and uncertainty in connection with the acquisition and divestment of enterprises.