3 August 2007 STOCK EXCHANGE ANNOUNCEMENT NO. 252 Interim Announcement for the period ended 30 June 2007 and announcement of commencement of share buy-back programme Revenue amounted to DKK 17,074 million. Gross profit came to DKK 3,845 million. Operating profit before special items came to DKK 847 million. Profit before tax amounted to DKK 645 million. DSV's share of the profit for the period amounted to DKK 441 million, and the diluted adjusted earnings per share amounted to DKK 2.7. Free cash flow for the period adjusted for the acquisition of enterprises amounted to DKK 382 million. Group Management considers the results for the period satisfactory. DSV will launch new share buy-backs for DKK 500 million according to the 'safe harbour' method. Yours faithfully DSV MANAGEMENT'S REVIEW DSV achieved satisfactory financial results for the first six months of 2007, in which focus was on the continued integration of Frans Maas Groep N.V. (Frans Maas), acquired on 1 April 2006, and on company acquisitions in the Air & Sea Division. Revenue In the first half of 2007, DSV achieved a revenue increase of 13.5% relative to the same period of 2006. The increase in revenue is mainly attributable to the acquisition of Frans Maas. Hence, organic growth for the period was 1.4%. The modest organic growth is due to a continued focus on elimination of loss-making contracts and replacement of agents with own networks. H1 REVENUE - REALISED 2007 VERSUS REALISED 2006 DKKm H1 2006 revenue 15,037 Foreign currency translation adjustments (89) Acquisition and divestments of enterprises, net 1,922 Growth 204 H1 2007 revenue 17,074 The Group's revenue was 3.0% below budget, which is mainly attributable to lower growth. H1 REVENUE - REALISED 2007 VERSUS BUDGET 2007 DKKm H1 2007 revenue, budget 17,607 Foreign currency translation adjustments 29 Acquisition and divestments of enterprises, net 26 Growth (588) H1 2007 revenue 17,074 Gross profit The consolidated gross margin ratio increased to 22.5% relative to 21.6% in the same period of 2006. This is mainly related to a change in the product mix after the acquisition of Frans Maas, which has a comparatively higher proportion of international mixed cargo, which usually realises high gross margin ratios. In addition, the realised synergies have had a positive effect on gross profit. The gross margin ratio realised was 0.8 percentage point above budget. Operating profit before special items The Group returned an operating profit before special items for H1 2007 of DKK 847 million compared with DKK 723 million for the corresponding period of last year, equalling a growth of 17.3%. When adjusted for amortisation of customer relationships of DKK 27 million and costs related to share-based payments of DKK 5 million, the Group's operating profit before special items came to DKK 879 million. The corresponding profit for 2006 amounted to DKK 742 million. The ratio was 5.0% for the period compared with 4.8% for the same period of 2006. H1 OPERATING PROFIT BEFORE SPECIAL ITEMS - REALISED 2007 VERSUS REALISED 2006 DKKm H1 2006 operating profit before special items 723 Foreign currency translation adjustments (14) Acquisition and divestments of enterprises, net 7 Growth 131 H1 2007 operating profit before special items 847 Operating profit before special items was 8.3% above budget. This is due to an improved gross margin ratio and to the fact that other external costs and amortisation and depreciation of intangibles, property, plant and equipment were below budget. H1 OPERATING PROFIT BEFORE SPECIAL ITEMS - REALISED 2007 VERSUS BUDGET 2007 DKKm H1 2007 operating profit before special items, budget 782 Foreign currency translation adjustments (1) Acquisition and divestments of enterprises, net 1 Growth 65 H1 2007 operating profit before special items 847 Special items Special items represent a net cost of DKK 91 million for the period and primarily relate to restructuring costs in Germany and France following the integration of Frans Maas. Special items were DKK 16 million above budget. This is attributable to a time lag between H1 and H2 compared with the budget. Net financial expenses Financial expenses netted DKK 111 million for the period as against DKK 82 million for the same period of 2006. Net financial expenses were on a par with the budget. Profit before tax Profit before tax came to DKK 645 million for the period as against DKK 391 million for the same period of 2006. Profit before tax for H1 2006 was affected negatively by one-off items of DKK 250 million net, while the profit before tax for H1 2007 was affected negatively by special items of DKK 91 million. When adjusted for these special items, the profit before tax for the period improved by DKK 95 million. The main reason for the increase is the higher activity level following the acquisition of Frans Maas and improved margin ratios, although they are partly offset by higher financial expenses. Profit before tax was 7.9% above budget. This is attributable to improved earnings, which are partly offset by special costs above budget. Diluted adjusted earnings per share Diluted adjusted earnings per share for the year came to DKK 5.3 for 2007 compared with DKK 4.4 for 2006, corresponding to an increase of 20.5%. Balance sheet The balance sheet stood at DKK 16,577 million at 30 June 2007 as against DKK 16,062 million at 31 December 2006. The increase in the balance sheet total at 30 June 2007 is primarily attributable to the acquisition of enterprises and an increase in working capital. Equity On 30 April 2007, the Supervisory Board of DSV decided to buy back shares for up to DKK 400 million in the period from 30 April to 31 July 2007, both days inclusive. At 30 June 2007, DSV has bought back shares for an amount of DKK 220 million in this share buy-back programme. At 30 June 2007, Group equity came to DKK 3,918 million, DKK 166 million of which is attributable to minority interests. At 31 December 2006, Group equity came to DKK 3,844 million. The increase derived mainly from profit for the period, which is partly offset by share buy-backs to cover an option scheme and a share buy-back programme as well as distribution of dividends to the DSV shareholders. DEVELOPMENT IN EQUITY DKKm H1 2006 H1 2007 Equity at 1 January 3,323 3,844 Net profit for the period 275 461 Share buy-back, net (162) (360) Dividends (50) (50) Foreign currency translation adjustments (25) (12) Fair value adjustment of interest swaps 17 24 Other (3) 11 Equity at 30 June 3,375 3,918 The solvency ratio exclusive of minority interests came to 22.6%. This is a decrease on 31 December 2006 when the corresponding ratio was 23.0%. The development is primarily attributable to an increase in the balance sheet total. At the Annual General Meeting of DSV on 30 April 2007, the shareholders resolved to reduce the nominal value of the shares in the Company and to issue bonus shares. The Company's share capital thus changed from DKK 40.3 million divided into 20.15 million shares of DKK 2 per share to DKK 201.5 million divided into 201.5 million shares of DKK 1 per share. Net working capital The Company's funds tied up in net working capital came to DKK 888 million at 30 June 2007 compared with DKK 722 million at 31 December 2006. The increase is mainly attributable to seasonal fluctuations because the activity level was low in the second half of December and because the current implementation of new IT systems and the establishment of shared service centres at the former Frans Maas locations imply that more funds is tied up in working capital in a transitional phase. Net interest-bearing debt Net interest-bearing debt amounted to DKK 4,998 million at 30 June 2007 as against DKK 4,835 million at 31 December 2006. The increase is primarily attributable to share buy-backs, an increase in net working capital and acquisitions of enterprises, which are set off in part by cash flow from operating activities. Cash flow from operating activities Cash flow from operating activities came to DKK 499 million for the period compared with DKK 502 million for the same period of 2006. Cash flow from operating activities includes an increased profit before tax and amortisation and depreciation of intangibles, property, plant and equipment, which is set off by changes in provisions and higher tax payments on account. Cash flow from investing activities Cash flow from investment activities netted an outflow of DKK 225 million. Adjusted for the impact of acquisition of enterprises, cash flow from investing activities netted an outflow of DKK 117 million. Free cash flow Free cash flow for the period adjusted for the acquisition of enterprises amounted to DKK 382 million. Invested capital including goodwill and customer relationships The Group's invested capital including goodwill and customer relationships came to DKK 9,153 million at 30 June 2007 as against DKK 8,870 million at 30 June 2006, equal to an increase of DKK 283 million. The increase is mainly due to acquisitions in the past year. ROIC including goodwill and customer relationships Return on invested capital including goodwill and customer relationships was 18.8% for the period compared with 19.8% for the same period of 2006. The development is primarily caused by an increase in average invested capital. Events after the balance sheet date of the Interim Report No material events other than the share buy-back programme and a change in the Supervisory Board have occurred after the balance sheet date. Outlook for 2007 DSV maintains the expectations of the H2 2007 income statement disclosed in the 2006 Annual Report. Expected free cash flow for 2007 adjusted for the acquisition of enterprises remains at DKK 1,000 million as disclosed in the 2006 Annual Report. Status of consolidation As previously announced DSV has a strong wish to play a pro-active role in the current consolidation of the transport and logistics sector. Group Management considers DSV to have both the operative and financial strength to play an active role in the consolidation of the sector. In the second quarter of 2007, DSV has continued the consolidation within the Air & Sea Division, particularly through the acquisition of Cambell Freight Agencies Limited, situated in Northern Ireland, and Campbell Freight Agencies (Ireland) Limited, situated in Ireland. At present, DSV is in dialogue with a number of small, medium-sized and large transport and logistics companies. At present, the interests are mainly focused on additional consolidations within Air & Sea. At present it is impossible for Group Management to assess whether one or more of these dialogues will result in additional acquisitions or consolidations. Share buy-backs for up to DKK 500 million according to the 'safe harbour' method The Supervisory Board of DSV has decided to buy back shares in accordance with the authorisation granted by the General Meeting on 30 April 2007. At 2 August 2007, DSV holds 7,632,327 treasury shares of a nominal value of DKK 1 each, corresponding to 3.79% of DSV's share capital. Background The capital structure of DSV is assessed on a regular basis. Considering the increased activity level of DSV, its strong operations and high free cash flow, Group Management has resolved to launch a share buy-back programme in accordance with the targets set out for the Group's capital structure. The ratio of net interest-bearing debt to EBITDA (operating profit before amortisation, depreciation and special items) should be at least 2-3. EXCHANGE RATES Currency Realised Year-to-date average Budget 30.06.06 30.06.07 30.06.06 30.06.07 2007 Euroland EUR 746 744 746 745 745 UK GBP 1,078 1,104 1,086 1,105 1,100 Norway NOK 94 93 94 92 92 Sweden SEK 81 80 80 81 80 USA USD 587 551 609 561 580 Considering the financial results achieved and the expectations for the remaining part of 2007, the Group's net interest-bearing debt should be around DKK 4.3-6.4 billion. Group Management deems that the share buy-back will not prevent DSV from actively contributing to the continued consolidation of the transport and logistics sector. The purpose of the share buy-back is to reduce the share capital. At the next Annual General Meeting, the Supervisory Board will propose a resolution to reduce the share capital of DSV by a nominal amount equalling at least the nominal amount of the shares bought back. The share buy-back period runs from 3 August 2007 to 31 October 2007, both days inclusive. During this period DSV will buy back shares not exceeding a value of DKK 500 million as set forth in the share buy-back programme prepared in accordance with the provisions of Commission Regulation (EC) no. 2273/2003 of 22 December 2003, the so-called 'safe harbour' method that protects the supervisory and executive boards of listed companies from violating insider trading legislation in connection with share buy-backs. Buy-back terms • DSV is required to retain a financial adviser who is to make its own trading decisions independently of and without influence from DSV and execute the buy-backs within the announced framework. DSV will retain Carnegie Bank A/S as its financial adviser and lead manager for the share buy-back. • The maximum amount that DSV may pay for shares purchased under the share buy-back programme is DKK 500 million. No more than 12,517,673 shares, corresponding to 6.21% of the current share capital of DSV A/S, may be purchased. • No shares may be bought back at a price deviating by more than 5% from the most recently quoted market price of the shares at the date of acquisition, or which otherwise exceeds the higher of the price of the last independent trade and the highest current independent bid (by buyers) on the OMX Nordic Exchange at the time of trading. As a result of this restriction, DSV can hardly expect to make purchases up to the daily share buy-back limit. • On each business day, a maximum of 301,608 shares in the Company may be purchased, corresponding to 25% of the average trading volume of DSV shares on the OMX Nordic Exchange in July 2007. • The reporting obligations under Danish law and the rules of the OMX Nordic Exchange must be fulfilled within the applicable time-limits. Audit This Interim Announcement has not been audited or reviewed. DKK for 100 currency units DSV GROUP - INCOME STATEMENT FOR THE PERIOD (DKKm) 01.01.06-30.06.06 Realised 01.01.07-30.06.07 Budget 01.01.07-30.06.07 Realised Revenue 15,037 17,607 17,074 Direct costs 11,794 13,792 13,229 Gross profit 3,243 3,815 3,845 Other external expenses 815 1,003 948 Staff costs 1,550 1,810 1,855 Operating profit before amortisation, depreciation and special items 878 1,002 1,042 Amortisation, depreciation and impairment of intangibles, property, plant and equipment, excluding customer relationships 138 194 168 Amortisation and impairment of customer relationships 17 26 27 Operating profit before special items 723 782 847 Special items, net (250) (75) (91) Operating profit (EBIT) 473 707 756 Finansial expenses, net 82 109 111 Profit before tax 391 598 645 Calculated tax 116 173 184 Net profit for the period 275 425 461 Net profit for the period is allocated to: Shareholders of DSV A/S 258 411 441 Minority interests 17 14 20 DSV GROUP - BALANCE SHEET, SUMMARY (DKKm) 31.12.06 30.06.07 Goodwill and customer relationships (Acquisition cost: DKK 5,426 million) 4,755 4,902 Other intangibles, property, plant and equipment 3,928 3,925 Other non-current assets 410 428 Total non-current assets 9,093 9,255 Receivables 6,562 6,914 Cash 407 408 Total current assets 6,969 7,322 Total assets 16,062 16,577 Equity including minority interests 3,844 3,918 Interest-bearing long-term debt 4,604 4,591 Other non-current liabilities, including provisions 1,136 1,227 Non-current liabilities 5,740 5,818 Interest-bearing short-term debt 638 815 Other short-term debt 5,840 6,026 Total current liabilities 6,478 6,841 Total equity and liabilities 16,062 16,577 Number of employees: 19,040. DSV GROUP - CASH FLOW STATEMENT FOR THE PERIOD (DKKm) 01.01.06-30.06.06 01.01.07-30.06.07 Profit before tax 391 645 Reversed amortisation and depreciation of intangibles, property, plant and equipment 155 195 Other non-cash operating items 0 5 Changes in working capital (203) (180) Changes in provisions 278 20 Corporation tax paid (119) (186) Cash flow from operating activities 502 499 Acquisition/divestment of subsidiaries and activities, net (1,455) (108) Acquisition/divestment of intangibles, property, plant and equipment, net (83) (150) Acquisition/divestment of financial assets, net 1 33 Cash flow from investing activities (1,537) (225) Free cash flow (1,035) 274 Financial payments, net 1,353 153 Cash items under equity, net (210) (413) Cash flow from financing activities 1,143 (260) Cash flow for the period 108 14 Cash and cash equivalents at beginning of period 385 407 Cash flow for the period 108 14 Foreign currency translation adjustments (21) (13) Cash and cash equivalents at end of period 472 408 The cash flow statement cannot be directly derived from the balance sheet and income statement. Specification 1: Statement of adjusted free cash flow: Free cash flow (1,035) 274 Acquisition/divestment of subsidiaries and activities, net 1,455 108 Normalisation of net working capital in acquirees and activities 100 0 Adjusted free cash flow 520 382 Specification 2: Statement of enterprise value of acquirees: Acquisition/divestment of subsidiaries and activities, net 1,455 108 Interest-bearing debt 1,874 10 Normalisation of net working capital in acquirees and activities 100 0 Enterprise value of acquirees 3,429 118 FINANCIAL HIGHLIGHTS At 30.06.06 At 30.06.07 Financial ratios (%) Gross margin ratio 21.6 22.5 EBITDA margin 5.8 6.1 EBITA margin 4.8 5.0 EBIT margin 3.1 4.4 ROIC including goodwill and customer relationships 19.8 18.8 ROE 15.2 25.2 Equity ratio (exclusive of minority interests) 20.2 22.6 Key figures (DKKm) Adjusted earnings 445 533 Net interest-bearing debt 5,331 4,998 Invested capital including goodwill and customer relationships 8,870 9,153 Share ratios1) Earnings per share for the year (DKK) 2.6 4.5 Diluted adjusted earnings per share for the period (DKK) 2.2 2.7 Diluted adjusted earnings per share for the year (DKK) 4.4 5.3 Total number of shares (1,000) 209,042 201,500 Average number of shares (1,000) 198,560 197,805 Average number of diluted shares (1,000) 202,610 201,078 1) Comparative figures at 30 June 2006 have been adjusted to the changed denomination of the Company's shares and the issue of bonus shares. Key figures are calculated in accordance with The Danish Society of Financial Analysts' "Recommendations & Financial Ratios 2005". See also DSV's 2006 Annual Report, page 56. SUMMARY OF DIVISION RESULTS Segmentation change DSV has changed its segmentation of Frans Maas and own activities in 2007 relative to 2006. In 2007, the Frans Maas activities are reported under the individual divisions, as opposed to previously when it was mainly booked under the Road Division. This has resulted in a transfer in the 2007 budget of about DKK 3,500 million of the acquired revenue from the Road Division to the Air & Sea Division (about DKK 400 million) and to the Solutions Division (about DKK 3,100 million). Road Division Revenue The revenue of the Road Division was 2.6% below budget. Norway, Germany and South Eastern Europe were above budget, while the Netherlands and Sweden were below budget. Gross profit The gross margin ratio of the Road Division came to 21.2% in the period as against the budgeted 20.8%. This is mainly due to elimination of loss-making activities and realised synergies in connection with the acquisition of Frans Maas. Operating profit before special items The Road Division achieved an operating profit before special items that was 4.1% above budget. This is primarily attributable to book profits on the sale of properties and operating equipment. Denmark, Norway and the UK were above budget, while the Netherlands, Germany, France and Spain were below budget. Balance sheet The balance sheet of the Road Division stood at DKK 13,307 million at 30 June 2007 as against DKK 14,094 million at 31 December 2006. The main reason for the decline is the reduction of non-current assets following the changed segmentation in the divisions. Net working capital The Road Division's funds tied up in net working capital came to DKK 480 million at 30 June 2007 compared with DKK 598 million at 31 December 2006. The change is due to the segmentation change in the divisions, which is partly offset by the current implementation of new IT systems and establishment of shared service centres at the former Frans Maas locations, which imply that more funds is tied up in working capital in a transitional phase. Group Management is satisfied with the development in and results of the Division. Air & Sea Division Revenue The revenue of the Air & Sea Division was 4.5% below budget in the period. This is mainly due to a declining Dollar and the fact that budgeted increases in freight rates were realised later than expected. The USA, Germany, the Netherlands and Hong Kong were below budget, while Denmark, the UK and Ireland, and China were above budget. Gross profit The gross margin ratio of the Air & Sea Division came to 21.5% in the period as against budgeted 19.4%. Operating profit before special items The operating profit before special items of the Air & Sea Division was 13.9% above budget in the first half of 2007. The USA, the Project Department in Denmark, the UK, Ireland and China were above budget, while the Netherlands was below budget. Balance sheet The balance sheet of the Air & Sea Division stood at DKK 3,021 million at 30 June 2007 as against DKK 2,766 million at 31 December 2006. The decline is mainly due to acquisition of enterprises in the second quarter of 2007, which is partly offset by payment of dividends to DSV A/S. Net working capital The Air & Sea Division's funds tied up in net working capital came to DKK 115 million at 30 June 2007 compared with DKK 91 million at 31 December 2006. The change is due to the current implementation of new IT systems and establishment of shared service centres at the former Frans Maas locations, which imply that more funds is tied up in working capital in a transitional phase. Group Management is satisfied with the development in and results of the Division. Solutions Division Revenue The revenue of the Solutions Division was 4.6% above budget in the period. Both the Nordic countries and the rest of Europe outperformed budgets. Gross profit The gross margin ratio of the Solutions Division came to 27.6% in the period as against budgeted 28.5%. Operating profit before special items Operating profit before special items came to DKK 119 million for the first half of 2007, which is better than the budgeted amount of DKK 108 million. This is attributable to the rest of Europe as the Nordic countries were slightly below budget. Balance sheet The balance sheet of the Solutions Division stood at DKK 3,485 million at 30 June 2007 as against DKK 554 million at 31 December 2006. The increase is mainly attributable to the segmentation change in the divisions. Net working capital The Solutions Division's funds tied up in net working capital came to DKK 265 million at 30 June 2007 compared with DKK 61 million at 31 December 2006. The increase is mainly attributable to the segmentation change in the divisions. Group Management is highly satisfied with the development in and results of the Division. ROAD DIVISION INCOME STATEMENT FOR THE PERIOD, SUMMARY (DKKm) 01.01.06-30.06.06 Realised 01.01.07-30.06.07 Budget 01.01.07-30.06.07 Realised Revenue 11,291 11,732 11,427 Direct costs 8,876 9,286 9,002 Gross profit 2,415 2,446 2,425 Other external expenses 630 634 603 Staff costs 1,196 1,250 1,267 Operating profit before amortisation, depreciation and special items 589 562 555 Amortisation, depreciation and impairment of intangibles, property, plant and equipment, excluding customer relationships 124 140 120 Amortisation and impairment of customer relationships 12 8 4 Operating profit before special items 453 414 431 BALANCE SHEET, SUMMARY (DKKm) 31.12.06 30.06.07 Goodwill and customer relationships 2,307 2,149 Other intangibles, property, plant and equipment 3,707 2,903 Other non-current assets 542 596 Total non-current assets 6,556 5,648 Receivables 5,278 4,718 Cash and intercompany balances 2,260 2,941 Total current assets 7,538 7,659 Total assets 14,094 13,307 Equity 827 1,205 Interest-bearing long-term debt 848 420 Other non-current liabilities, including provisions 1,037 947 Non-current liabilities 1,885 1,367 Interest-bearing short-term debt, including intercompany debt 6,702 6,497 Other short-term debt 4,680 4,238 Total current liabilities 11,382 10,735 Total equity and liabilities 14,094 13,307 ROIC came to 14.2%. The calculation of ROIC included DKK 2,355 million relating to goodwill and customer relationships. The item consists of the Division's goodwill, customer relationships and goodwill allocated from DSV. Number of employees: 11,470. Activities The Road Division handles transport (full and part loads and mixed cargo) by trucks domestically and between the European countries. The services are produced by Group enterprises all over Europe. The actual transport operations have basically been outsourced to sub-contractors. The Division in brief The results of the Division are satisfactory, particularly considering that the Road Division included many Solutions activities and a significant profit from the sale of real property of DKK 50 million in 2006. The Road Division's earnings are therefore far better than for the same period last year. The Division is still in the process of realising synergies and integrating Frans Maas in Germany, the Netherlands, France and Spain. The realisation of synergies includes the integration of traffic and changes in working methods in the network, which proved to be more different in DSV and Frans Maas than anticipated by Management. In addition, there have been changes in and coordination of IT systems, review and re-negotiation of loss-making contracts and regaining volumes in the countries previously based on agents, such as Austria, Hungary, Switzerland, Italy, Spain, Portugal, Greece and Turkey, etc. It is obvious that earnings will increase markedly in the Division when the integration is complete. The key personnel of the Division believe that we have solved many of the tough tasks and that we will be able to see an emerging improvement in the results of the Division. COUNTRY DEVELOPMENT IN REVENUE DEVELOPMENT IN OPERATING PROFIT BEFORE SPECIAL ITEMS (EBITA) FOCUS Denmark Slightly below budget. Markedly better than budget. Maybe the best managed company and the company with the highest EBITA margin of the Division. Aim at maintaining and strengthening the high earnings and the high quality. Sweden Slightly below budget. On a level with budget. The company demonstrated high quality on European traffic in recent months with an EBITA margin that compares favourably with that of the other Nordic countries. The company's earnings are better than the comparable companies in the Swedish market. The company ought to have a higher growth and maintain the improved earnings. Norway Outperformed budget. Much better than budget. Good management, domestically and internationally. Two well managed companies in a small market. However, especially Tollpost Globe showed particularly high growth in profit and revenue. Finland Outperformed budget. Outperformed budget. Good management, handsome EBITA margin. The management has spent resources on supporting the Solutions Division. Maintain growth and aim at a slightly higher EBITA margin. UK On a level with budget. 50% better than budget. Incredible turnaround. The company should have more growth and maintain the new high EBITA margin. Ireland On a level with budget. Outperformed budget. Handsome development in EBITA margin, but growth ought to improve. Germany Outperformed budget. Below budget. It is difficult, but the managements in Germany and Copenhagen are confident that the problems will be solved. The Netherlands Below budget. Very disappointing. The budget was probably prepared according to expectations which failed. A higher payment from the Netherlands to the largest countries of cooperation, the UK and France in particular, was an important factor. The improved European network available to the Netherlands should make it possible for the company to create high earnings and high growth. Belgium Almost on a level with budget. Outperformed budget. Good management. High EBITA margin on a level with that of Denmark. Should be able to improve its growth. France On a level with budget. Below budget. Difficult market. Confidence that the local management will create a profitable business. Italy Below budget. Below budget. Manage the other countries' great expectations of the Italian company, primarily in relation to service, quality and earnings. Spain and Portugal Below budget. Below budget. One of the areas acquired through Frans Maas and which was the most problematic. The new network and the new facilities in Barcelona ought to result in a more handsome EBITA. The somewhat critical comments only apply to Spain, whereas Portugal is doing well with respect to revenue and earnings. Poland Slightly better than budget. Almost on a level with budget. Management in Poland is expected to create a slightly improved EBITA margin and stronger growth. The Baltics, Russia and Ukraine Outperformed budget. Much better than budget. Good management in all areas. This is the highest growth; around 33% compared with the same period last year. Mainly organic. New markets with a growing economy. The growth demonstrated in the areas in recent years ought to be maintained. The management in the area considers a growth of 20% possible. Central Europe Outperformed budget. Outperformed budget. Part of the area is new for DSV. Results have continued to improve, however, the overall EBITA margin is modest. Higher earnings and a significant growth should be demanded. South Eastern Europe Much better than budget. Slightly below budget. The countries differ widely, but the overall EBITA margin is relatively modest. A strong growth in the area and an EBITA margin resembling that of the Baltics should be expected. REVENUE AND OPERATING PROFIT BEFORE SPECIAL ITEMS BY MARKETS Revenue Operating profit before special items Operating profit before special items (%) (DKKm) Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Denmark 2,312 2,422 2,369 129 127 160 5.6 5.2 6.8 Sweden 2,036 2,177 2,062 77 63 63 3.8 2.9 3.1 Norway 1,478 1,561 1,631 68 78 94 4.6 5.0 5.8 Finland 583 604 627 18 18 20 3.1 3.0 3.2 UK 1,022 1,053 1,039 29 39 60 2.8 3.7 5.8 Ireland 295 295 292 11 11 14 3.7 3.7 4.8 Germany 1,735 1,099 1,150 (13) (4) (23) -0.7 -0.4 -2.0 The Netherlands 815 623 446 73 31 1 9.0 5.0 0.2 Belgium 490 474 454 43 27 31 8.8 5.7 6.8 France 495 708 701 (8) (9) (17) -1.6 -1.3 -2.4 Italy 195 487 450 3 12 6 1.5 2.5 1.3 Spain and Portugal 176 351 325 (4) (4) (12) -2.3 -1.1 -3.7 Poland 237 195 200 9 8 8 3.8 4.1 4.0 The Baltics, Russia and Ukraine 383 500 515 19 24 29 5.0 4.8 5.6 Central Europe1) 218 401 406 5 6 10 2.3 1.5 2.5 South Eastern Europe2) 165 166 209 5 2 4 3.0 1.2 1.9 Total 12,635 13,116 12,876 464 429 448 3.6 3.3 3.5 Group 298 417 405 1 (7) (13) - - - Amortisation of customer relationships 0 0 0 (12) (8) (4) - - - Elimination (1,642) (1,801) (1,854) 0 0 0 - - - Net 11,291 11,732 11,427 453 414 431 4.0 3.5 3.8 1) The segment comprises the following countries: Austria, Switzerland, Hungary, the Czech Republic and Slovakia. 2) The segment comprises the following countries: Greece, Bulgaria, Slovenia, Croatia, Serbia, Turkey and Morocco. AIR & SEA DIVISION INCOME STATEMENT FOR THE PERIOD, SUMMARY (DKKm) 01.01.06-30.06.06 Realised 01.01.07-30.06.07 Budget 01.01.07-30.06.07 Realised Revenue 3,615 4,313 4,117 Direct costs 2,879 3,476 3,233 Gross profit 736 837 884 Other external expenses 162 187 192 Staff costs 308 362 366 Operating profit before amortisation, depreciation and special items 266 288 326 Amortisation, depreciation and impairment of intangibles, property, plant and equipment, excluding customer relationships 9 12 11 Amortisation and impairment of customer relationships 3 3 4 Operating profit before special items 254 273 311 BALANCE SHEET, SUMMARY (DKKm) 31.12.06 30.06.07 Goodwill and customer relationships 745 886 Other intangibles, property, plant and equipment 100 105 Other non-current assets 37 34 Total non-current assets 882 1,025 Receivables 1,301 1,436 Cash and intercompany balances 583 560 Total current assets 1,884 1,996 Total assets 2,766 3,021 Equity 491 491 Interest-bearing long-term debt 1 40 Other non-current liabilities, including provisions 83 79 Non-current liabilities 84 119 Interest-bearing short-term debt, including intercompany debt 981 1,090 Other short-term debt 1,210 1,321 Total current liabilities 2,191 2,411 Total equity and liabilities 2,766 3,021 ROIC came to 40.7%. The calculation of ROIC included DKK 1,438 million relating to goodwill and customer relationships. The item consists of the Division's goodwill, customer relationships and goodwill allocated from DSV. Number of employees: 2,865. Activities The Air & Sea Division handles shipments to overseas markets by air and sea. The activities are concentrated in Scandinavia, the USA, the UK, Germany, the Benelux countries and the Far East. The Division handles full loads, part loads, containers and flight palettes. The Division does not have its own fleet of aircraft or ships, but mainly acts as an intermediary between the individual customer and the shipping line or airline company. The Division in brief The Division had a very good six-month period. Both revenue and earnings increased markedly. The Division has great focus on growth. Management and key personnel are thus aware of and committed to growth opportunities, organically or through acquisitions. It is important to the Division that the managers are updated on the opportunities present in the market, in their respective parts of the world. In spite of very good results, the Division also had somewhat disappointing earnings and revenue in Germany and the Netherlands. Group Management is convinced that the two areas will improve. In the first six months, the Division has expanded its activities in India and acquired enterprises in Dubai and Ireland. In connection with the acquisition of Frans Maas, countries in which activities were previously managed by agents experienced some reduction in revenue and earnings, the most significant countries being Italy, Spain and Turkey. COUNTRY DEVELOPMENT IN REVENUE DEVELOPMENT IN OPERATING PROFIT BEFORE SPECIAL ITEMS (EBITA) FOCUS USA Slightly below budget, but clearly related to the low Dollar. Outperformed budget and on a level with last year in spite of the Dollar rate. The American company has an extraordinarily high EBITA margin compared with the rest of the industry, which the company should aim to maintain. Denmark Much better than budget. Outperformed budget. Continue growth and develop the good collaboration with the two other divisions in Denmark. Denmark Project Dept Slightly below budget. Much better than budget. More than a twofold increase compared with the same period of 2006. Maintain and continue the tremendous development of the period. Norway Outperformed budget. Outperformed budget. Develop a well managed company in relation to a market with a great potential. Sweden Below budget. Outperformed budget. A good effort in the Swedish company with a markedly improved EBITA margin after having lost some volume last year. Maintain the high earnings margin. Finland Below budget. On a level with budget. A well managed company which ought to display stronger growth. UK and Ireland Outperformed budget. Markedly better than budget. The company shows handsome growth and a handsome improvement of EBITA margin. Aim to develop growth as well as EBITA margin. A stable and well managed company. Management wishes to take the opportunity to thank Hugh Burnham, who is now retiring, for the way he has built up the British Air & Sea company. Germany Below budget. Slightly below budget. The company has a modest EBITA margin which has not developed. The company operates in a difficult market. But ought to show more growth and a slightly better EBITA margin. The Netherlands Below budget. Below budget. A modest EBITA margin in a market with a substantial potential. Should be able to exploit the opportunities in the network in the next six-month period. Central Europe Slightly below budget. Below budget. The lowest EBITA margin of the group of Air & Sea companies. Should clearly improve. Canada Below budget. Below budget. The company has experienced a total change with a new management and new initiatives and has demonstrated handsome results in recent months. Division Management believes in increased earnings in the company. China Outperformed budget. Markedly better than budget. Maintain the high EBITA margin of the first six months. Hong Kong Below budget. On a level with budget. The highest EBITA margin of the Division thanks to the management and employees in Hong Kong. Australia On a level with budget. Outperformed budget. A handsome growth compared with the same period last year. Very handsome EBITA margin. Develop both EBITA margin and revenue. Other Far East Outperformed budget. More than a 40% increase compared with the same period of 2006. Outperformed budget. Very handsome development. It varies from country to country, but an overall EBITA margin slightly lower than last year. Maintain growth and increase the EBITA margin to the previous level. REVENUE AND OPERATING PROFIT BEFORE SPECIAL ITEMS BY MARKETS Revenue Operating profit before special items Operating profit before special items (%) (DKKm) Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 USA 886 898 858 97 84 97 10.9 9.4 11.3 Denmark 690 799 829 41 43 46 5.9 5.4 5.5 Project Dept. 311 329 310 11 13 24 3.5 4.0 7.7 Norway 121 153 154 10 12 14 8.3 7.8 9.1 Sweden 268 218 205 10 7 12 3.7 3.2 5.9 Finland 104 123 107 5 5 5 4.8 4.1 4.7 UK and Ireland 437 546 567 18 18 25 4.1 3.3 4.4 Germany 520 531 485 12 10 11 2.3 1.9 2.3 The Netherlands 74 283 239 2 17 7 2.7 6.0 2.9 Central Europe1) 68 128 116 2 4 2 2.9 3.1 1.7 Canada 75 75 56 0 4 2 0.0 5.3 3.6 China 210 215 237 16 18 26 7.6 8.4 11.0 Hong Kong 156 212 185 17 22 22 10.9 10.4 11.9 Australia 94 113 113 4 5 8 4.3 4.4 7.1 Other Far East2) 219 304 317 12 14 15 5.5 4.6 4.7 Total 4,233 4,927 4,778 257 276 316 6.1 5.6 6.6 Group 5 3 1 0 0 (1) - - - Amortisation of customer relationships 0 0 0 (3) (3) (4) - - - Elimination (623) (617) (662) 0 0 0 - - - Net 3,615 4,313 4,117 254 273 311 7.0 6.3 7.6 1) The segment comprises the following countries: Poland, Hungary, the Czech Republic and Turkey. 2) The segment comprises the following countries: Indonesia, Thailand, Singapore, Malaysia, the Philippines, Korea, Taiwan, Vietnam, India Bangladesh and the United Arab Emirates. SOLUTIONS DIVISION INCOME STATEMENT FOR THE PERIOD, SUMMARY (DKKm) 01.01.06-30.06.06 Realised 01.01.07-30.06.07 Budget 01.01.07-30.06.07 Realised Revenue 476 2,013 2,105 Direct costs 363 1,440 1,525 Gross profit 113 573 580 Other external expenses 36 218 191 Staff costs 44 192 215 Operating profit before amortisation, depreciation and special items 33 163 174 Amortisation, depreciation and impairment of intangibles, property, plant and equipment, excluding customer relationships 7 40 36 Amortisation and impairment of customer relationships 0 15 19 Operating profit before special items 26 108 119 BALANCE SHEET, SUMMARY (DKKm) 31.12.06 30.06.07 Goodwill and customer relationships 81 978 Other intangibles, property, plant and equipment 111 917 Other non-current assets 26 118 Total non-current assets 218 2,013 Receivables 250 1,129 Cash and intercompany balances 86 343 Total current assets 336 1,472 Total assets 554 3,485 Equity 276 345 Interest-bearing long-term debt 8 392 Other non-current liabilities, including provisions 18 197 Non-current liabilities 26 589 Interest-bearing short-term debt, including intercompany debt 63 1,687 Other short-term debt 189 864 Total current liabilities 252 2,551 Total equity and liabilities 554 3,485 ROIC came to 16.1%. The calculation of ROIC included DKK 1,633 million relating to goodwill and customer relationships. The item consists of the Division's goodwill, customer relationships and goodwill allocated from DSV. Number of employees: 4,705. Activities The Solutions Division defines solutions as comprehensive logistics solutions, including outsourcing of stocks, distribution and a number of services related to customers' supply chain. These services are mainly aimed at large industrial companies within branded products and brands. The business areas of the Division also include distribution and cross-docking. The Division in brief Division Management has put a lot of energy into establishing the structure of the new Division. This work will continue over the coming 12 months. In addition to the changes, the Division has succeeded in creating fantastic results. This business area is in high demand in most of Europe. According to Division Management, this demand is at least on a level with that of the two other divisions. Similar to the Air & Sea Division, Division Management is open and attentive towards strategic acquisition opportunities. The Group is very willing to invest in this business area, as volumes to and from the logistics centres often result in revenue and value in the other divisions. COUNTRY DEVELOPMENT IN REVENUE DEVELOPMENT IN OPERATING PROFIT BEFORE SPECIAL ITEMS (EBITA) FOCUS Nordic countries Outperformed budget. Below budget. A somewhat disappointing development in Denmark and Sweden, which should be corrected quickly. Finland handled its crisis in a sensible way and is back on a handsome operating profit. The Norwegian results are very handsome. Focus should be on a higher EBITA margin in Denmark and Sweden. Other Europe Outperformed budget. Outperformed budget. The Netherlands and Belgium demonstrate very good operating profits, and Management believes that the other European countries will be able to realise significantly higher EBITA margins over time than is the case today. Focus on development and growth. REVENUE AND OPERATING PROFIT BEFORE SPECIAL ITEMS BY MARKETS Revenue Operating profit before special items Operating profit before special items (%) (DKKm) Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Realised 01.01.06-30.06.06 Budget 01.01.07-30.06.07 Realised 01.01.07-30.06.07 Nordic countries1) 517 501 556 26 26 20 5.0 5.2 3.6 Other Europe2) 0 1,564 1,610 0 97 118 - 6.2 7.3 Total 517 2,065 2,166 26 123 138 5.0 6.0 6.3 Group 2 3 3 0 0 0 - - - Amortisation of customer relationships 0 0 0 0 (15) (19) - - - Elimination (43) (55) (64) 0 0 0 - - - Net 476 2,013 2,105 26 108 119 5.5 5.4 5.7 1) The segment comprises the following countries: Denmark, Norway, Sweden and Finland. 2) The segment comprises the following countries: The UK, Germany, the Netherlands, Belgium, France, Poland and Romania. SHAREHOLDER INFORMATION Group Management Leif Tullberg, Managing Director, has decided to resign from his position as Supervisory Board member of DSV A/S. The Supervisory Board took note of the decision with regret at its meeting on 2 August 2007. Mr Tullberg has worked for the Company for 31 years and was one of the original founders of the Company back in the summer of 1976. His efforts have been invaluable, and Mr Tullberg can undoubtedly be credited with a very large part of the Company's size and value. Remuneration of the Executive Board In H1 2007, DKK 7.8 million was paid out to the members of the Executive Board of DSV as remuneration. DKK 6.6 million was paid out in H1 2006. Incentive programme DSV has launched an incentive programme consisting of options with a view to motivating and retaining staff, senior staff and members of the Executive Board. The incentive programme launched is also to make staff and shareholders identify with the same interests. The market value of the Group's incentive programme at 30 June 2007 amounted to DKK 158.5 million, DKK 14.9 million of which constituted the proportion held by members of the Executive Board. The market value is calculated according to the Black & Scholes model. Latest important stock exchange announcements 30 April 2007 (announcement no. 235) Minutes of Annual General Meeting of DSV A/S 1 May 2007 (announcement no. 236) DSV A/S reduces the nominal value of its shares and issues bonus shares 6 June 2007 (announcement no. 244) DSV acquires Campbell Freight Agencies Limited and Campbell Freight Agencies (Ireland) Limited 1 August 2007 (announcement no. 251) Share buy-back in DSV A/S - regarding the closing of a share buy-back programme of DKK 400,000 million Investor teleconference DSV invites investors, shareholders, analysts and others to participate in an investor teleconference on 3 August 2007 at 10:30 a.m. At the conference, DSV will present this Interim Announcement. Participants will have ample opportunity to ask questions. Participants from DSV will be: Kurt K. Larsen, Group CEO Jens H. Lund, CFO The phone number for the teleconference is +44 (0) 208 817 9301. The conference will be in English. No prior registration is required to attend the teleconference. Web-based investor teleconference The teleconference can be viewed and heard directly at the DSV website (http://www.dsv.com) or via the OMX Nordice Exchange (http://www.omzgroup.com/nordicexchange/). Questions can only be asked by telephone. Please note that Microsoft Media Player is required to view the teleconference. Microsoft Media Player can be downloaded free of charge from both websites. It will be possible to test the connection at the above websites in the hours before the teleconference. Inquiries relating to the Interim Announcement Questions may be addressed to: Kurt K. Larsen, Group CEO, tel. +45 43 20 30 40, or Jens H. Lund, CFO, tel. +45 43 20 30 40. This Announcement is available on the Internet at: www.dsv.com. The announcement has been prepared in Danish and in English. In the event of discrepancies, the Danish version shall apply. Statement by the Executive and Supervisory Boards The Supervisory Board and the Executive Board have today considered and adopted the Interim Announcement of DSV A/S for the six months ended 30 June 2007. The Interim Report (unaudited) has been prepared in accordance with the rules on recognition and measurement of the International Financial Reporting Standards (IFRS) as well as additional Danish disclosure requirements of the financial reporting of listed companies. We consider the accounting policies applied to be appropriate and the estimates made acceptable so that the Interim Report gives a true and fair view of the Group's assets, equity, liabilities and financial position at 30 June 2007 and of the results of the Group's activities and cash flows for the six-month period ended 30 June 2007. Brøndby, 3 August 2007 Executive Board: Kurt K. Larsen Jens H. Lund Group CEO CFO Supervisory Board: Palle Flackeberg Erik B. Pedersen Chairman Deputy Chairman Kaj Christiansen Per Skov Hans Peter Drisdal Hansen Egon Korsbæk