DSV Solutions China General Presentation

Warehousing and Transportation

2016 Q3

2 | DSV – Q3, 2016

Breakdown of EBIT by division

Air & Sea

Road

Solutions

Breakdown of EBIT by geography

EMEA

Rest of world

20

08

19

76

10 independent

hauliers establish

DSV

19

89

DSV acquires

several Danish

competitors

19

97

DSV acquires

Samson Transport

and becomes

DSV Samson

Transport

20

00

20

06

DSV acquires

DFDS Dan

Transport Group

and quadruples the

size of the

company

20

14

100%

DSV acquires

Frans Maas

The DSV activities

change name from

DFDS Transport to

DSV (2007) and

DSV acquires ABX

LOGISTICS

DSV strengthens

the global network

through a number

of smaller

acquisitions along

with solid organic

growth

140 USDm Revenue

6 USDm EBIT

475 USDm Revenue

17 USDm EBIT

3,400 USDm Revenue

150 USDm EBIT

5,600 USDm Revenue

265 USDm EBIT

6,600 USDm Revenue

340 USDm EBIT

8,600 USDm Revenue

460 USDm EBIT

20

16

DSV acquires

UTi Worldwide

12,000 USDm Pro forma

Revenue (2015)

38%

59%

3%

58% 32%

10%

Strong Track Record of Successful M&A More than 50 companies united over time

3 | DSV – Q3, 2016

A true logistics partner

Listed on the OMX Copenhagen

More information on DSV.com

A strong global network

+40,000 employees worldwide

+$12 Billion annual revenue

Transport and logistics

services

Own operations in over

80 countries

4th largest 3PL

worldwide

800 offices and 350

logistics facilities

Founded in Denmark in

1976

DSV Global Transport and Logistics At a glance

4 | DSV – Q3, 2016

37.5

23.4

19.0

12.9

12.0

7.9

7.3

7.1

6.6

5.9

5.8

5.8

5.7

5.5

4.6

4.3

4.2

4.1

4.1

3.9

DHL Logistics (DE)

Kuehne + Nagel (CH)

DB Schenker (DE)

(DK)

C. H. Robinson (US)

CEVA Logistics (NL)

Panalpina (CH)

Dachser (DE)

Expeditors (US)

SNCF Geodis (FR)

J. B. Hunt (US)

UPS (US)

Sinotrans (CN)

Gefco (FR)

Toll (AU)

Bolloré (FR)

Agility Logistics (KW)

Yusen Logistics (JP)

Rhenus (DE)

Hellmann (DE) Source: Journal of Commerce, 15 April 2015, Transport Intelligence

• DSV and UTi Worldwide combined

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Competitive Landscape Global top 20 3PL based on 2014 revenue (billion USD)

5 | DSV – Q3, 2016

Global transport and logistics services Three divisions working together to support the entire supply chain

• Leading road freight operator in in

Europe

• Distribution in North America,

Africa and Asia

• More than 20,000 trucks on the

road every day

• LTL and full-load services

• Global contract logistics services

• 300 logistics facilities – a total of

4.7 million m2

• Special competences in key

industries

• Solutions for E-commerce

• Access to all markets through our

global network

• Annual ocean freight volume of

more than 1.3 million TEU

• Annual air freight volume of

more than 600,000 tonnes

• FCL/ LCL and special projects

DSV Air & Sea

+

UTi Freight Forwarding

DSV Road

+

UTi Distribution

DSV Solutions

+

UTi Contract Logistics

6 | DSV – Q3, 2016

DSV Solutions Services and Vertical Sales

Integrated

Global Network

Technology

Leadership

Process

Excellence

Empowered

People

Strategic Cornerstones

Value-Added

Services

Outbound

Distribution

Warehousing

Inbound

Logistics

After Sales

Services

Industry

Concepts

Road Air & Sea Contract

Logistics

Automotive

Consumer Products

Healthcare

High - Tech

Industrial

Americas

APAC

EMEA

Service Portfolio

Solutions

7 | DSV – Q3, 2016

DSV Solutions APAC Key Facts and Figures

Employees 2000

Facilities 98

Surface

managed

467,000 m2

Revenue

2015 pro

forma

100 Million

USD

Countries 12

Key Clients Estee Lauder

Ford

Group SEB

Nestle

Reports to the APAC Regional Director, DSV Solutions

8 | DSV – Q3, 2016

DSV Solutions Asia Pacific Regional Management team

APAC

Guillaume Burette

North/East

China

Guillaume Burette

Taiwan

Robert Lin

Thailand

Eddie Haapala

Singapore

Fang Xie

Philippines

Ralf Bekink

Dir

ec

tor

Brian Ejsing

CEO

Japan

Takashi Suzuki

South China

Sanson Ko

India

Hariharan

Sivaprakasam

Australia /New

Zealand

Paul Thomsen

Korea

Moonho Choi

9 | DSV – Q3, 2016

Business

controller Guillaume Burette

Quality / CIP

Edward Haapala

Ganesan Chinniah

Solution Design

Fang Xie

Jessie Jin

Implementation

Andre Steenkamp

APAC WMS

Allen Shi

Commercial

Ralf Bekink

Legal

Charles Goldsmith

DSV Solutions Asia Pacific Regional Centre of Competence

Quality CIP: Ensure same quality process throughout the region

Solutions Design: Same calculation and processes no matter the location

Implementation: Coordinate APAC implementations

APAC WMS: One central WMS which can support all APAC locations

Commercial: Connecting the countries, one contact point for regional biddings

Legal: One contact for all APAC contracts

10 | DSV – Q3, 2016

DSV Solutions Asia Pacific Facilities Footprint

10

DSV countries Australia

New Zealand

India

China Japan Korea

Taiwan

Philippines

Vietnam

Thailand

Malaysia

Singapore Indonesia

Bangladesh Hong Kong

Country No. of sites Warehouse space

China 28 158,000m2

Hong Kong 3 21,500m2

India 19 71,000m2

Japan 6 11,000m2

Korea 4 2,000m2

Malaysia 3 5,000m2

New Zealand 1 3,500m2

Philippines 6 26,000m2

Singapore 9 37,000m2

Taiwan 5 74,000m2

Thailand 12 47,000m2

Australia 2 11000㎡

Total 98 467,000m2

11 | DSV – Q3, 2016

DSV Solutions China Overview

Transportation Hub

DSV Solutions Site

Chengdu

Xi’an

Chongqing

Liuzhou

Shanghai

Xiamen

Shenzhen

Suzhou

Wuxi

Qingdao Jinan

Beijing

Tianjin

Shenyang

Fuzhou Guangzhou

Golmud

URMQ

Korla

Lanzhou

Wenzhou

Zhengzhou

HK

Harbin Qqhr

Changchun

Dalian

Taiyuan

SJZ

Kunming

Country network • Own operations in 28 sites, 158,000 m2 warehouse space

• More than 360 employees serving for 80 customers

• 2015 turnover CNY 105 million

Products for 4 verticals

• Consumer, Hi-tech, Auto & Industrial

• Freight management

• Warehousing & distribution

Country functions

• Business Development

• Finance

• WMS

• Continuous improvement (DSV Sigma)

• Solutions design (DSV Sigma)

• Account management

12 | DSV – Q3, 2016

Transportation Hub

DSV Solutions Site

Chengdu

Xi’an

Chongqing

Liuzhou

Shanghai

Xiamen

Shenzhen

Suzhou

Wuxi

Qingdao Jinan

Beijing

Tianjin

Shenyang

Fuzhou Guangzhou

Golmud

URMQ

Korla

Lanzhou

Wenzhou

Zhengzhou

HK

Harbin Qqhr

Changchun

Dalian

Taiyuan

SJZ

Kunming

TW

DSV Solutions China Pan-China Footprint

Regions Locations Warehouse Space m2

North China

Shenyang 1000

Haerbin 500

Beijing 6000

Tianjin 18000

Suzhou 4000

Wuxi 6000

Shanghai 75500

Ningbo 8000

Fuzhou 500

Chengdu 1000

Kunming 1000

South China Guangzhou 3500

Shenzhen 33000

HK Hong Kong 21500

TW Taiwan 74000

Total 33 253,500

13 | DSV – Q3, 2016

Grade A warehouse:

High ceiling, with docks

Grade B warehouse:

High ceiling, no docks

Grade C warehouse:

Low ceiling, no docks 10000m2 +

5000m2

2000m2 Site Name

Surface in m2

Largest account name

• Bonded inventory: Delay Duties payment / Production /Regional DC

• Import for local distribution

• Import for domestic distribution / China-China flows

• Local production distribution / China-China flows

DSV Solutions China Shanghai Footprint

Site: Pudong

m2 : 2,200

Client: JCB

Site: Yangshan

m2 : 19,000

Client: BoConcept,

Zebra

Site: CFTZ

m2 : 500

Client: FOSS

Site: Waigaoqiao

m2 : 14,500

Client: Estee Lauder

Site: Ningbo

m2 : 8,000

Client: Group SEB

Site: Suzhou

m2 : 4,000

Client: Vestas

Site: Wuxi

m2 : 6,000

Client:

Schneider

Site: Kangqiao

m2 : 2,500

Client: WWRD, JCB

Site: Minhang

m2 : 5,800

Client: ZF

Site: Qingpu

m2 : 23,000

Client: Balluff,

RRD, JCI

Site: Songjiang

m2 : 5,000

Client: Rittal

Site: Jia ding

m2 : 2,900

Client: Autoliv

14 | DSV – Q3, 2016

Own Staff I Own Systems I Own Equipment & Locations

Bonded Supply Chain:

- Import distribution via FTZ with I/E trading

- North Asia DC in FTZ or BLP

- BLP & HKG U-turn

- Export Pick & Pack DC

Domestic Supply Chain:

- National & regional DC

- Inbound & manufacturing DC

Transport & Distribution:

- Transport management

- Bonded & Non-bonded trucking

- FTL/LTL

- Retail store delivery

- Domestic express delivery (spare parts)

- Factory – DC shuffle

IT Suite:

- 2-tier WMS solution with RF

- EDI integration

- Web-based order & invoice tracking

Value-added services:

- Import/Export trading license

- Labeling, co-packing, kitting

- All-risk insurance

Integrated Logistics Solutions for entire supply chain

DSV Solutions China Contract Logistics

15 | DSV – Q3, 2016

DSV Solutions China IT/WMS Landscape

Client ERP

Inventory &

replenishment management

Overseas Shipment tracking

& PO information

Web-based final delivery visibility

& billing reports

Top-tier

WMS

solution

DSV EDI

enterprise

CW One

Easy to

implement

local WMS

solution

16 | DSV – Q3, 2016

• Combination of Lean, Six Sigma and Change Management

• Launched in DSV Solutions in 2013

DSV Sigma is part of Strategic Wheel DSV Solutions

• DSV Sigma community set up to register projects & share experiences / successes

• Goal: • Reduce costs

• Become more efficient in daily work processes

• Create a culture of continuous improvement

• Offer advanced and cost saving solutions to the customers

• DSV Sigma is proven standardized methodology

to help DSV to improve our operation and to create a spirit of

continuous improvement.

• Implementing Best practices (Plan Tool, Recap)

• Sharing information (DSV Pedia, Trade Portal, Smart Solutions Library)

DSV Solutions China DSV Sigma

17 | DSV – Q3, 2016

Hi-tech Consumer Auto Industrial

DSV Solutions China Major Clients

18 | DSV – Q3, 2016

DSV Solutions China Key Distribution Center

Shanghai Qingpu Shanghai Yangshan Wuxi Ehu

Hong Kong Shatin Shanghai WGQ Shenzhen Yantian

All facilities operated by DSV Staff, MHE & WMS

19 | DSV – Q3, 2016

DSV Logistics License DSV Freight Forwarding

License

DSV Domestic

Transportation License

DSV I/E Trading License

DSV ISO 9001 Certificate DSV A-class Customs licenses in SHA WGQ FTZ and

AA – Class in YS FTPA

AAA credit grade China

International forwarders

DSV Solutions China License in Mainland China

20 | DSV – Q3, 2016

GE Transportation

Domestic trucking 2012

Honorable mentioned in

Antalis CSR Report 2014

Rockwool Appreciation

Letter 2015

Danfoss North China DC

2012

DSV Solutions China Customer Recognition

21 | DSV – Q3, 2016

• Servicing China in more than 550 cities with >1.200

of which 170 are long-termed leased.

• Selective vendor management

• LTL & FTL solutions

• Milk-runs & shuttle services

• Time sensitive

• Order tracking

• Solution design

• Cross-docking

DSV Solutions China Transportation

22 | DSV – Q3, 2016

Improved Visibility through DSV TMS

DSV TMS is an online ‘Software as a Service’ solution

• No software to purchase or install

• Chinese language and Address data base from China

Post

• Orders/rates/comments automatically updated through

the system

• No multiple order entry – Eliminate waste & errors

• Order track & trace through multiple vendor layers

• Pre-billing based on shared tariffs x volumes –

Transparency

• e-POD – Drivers take picture of the PODs, uploaded and

linked to orders on the website

• KPI reports

• Automatic emails to inform consignees about order

status

DSV Solutions China Trucking E-Visibility

23 | DSV – Q3, 2016

Partner that is easy to deal with:

• Simple, lean and flat organization that is agile in responding

to client & market needs.

• Focused on customers & operational excellence and not pre-

occupied with internal workflow and grand strategies

• Right partner for like-minded clients

Professional partner:

• State of the art WMS (RedPrairie) and TMS (www.otms.com)

• Capable people with China domestic logistics experience

from international 3PL market leaders

• Solution & implementation focused organization

• Experts in importation, Customs & bonded logistics

• Good value at the right cost do not accept operational

shortcuts however keep the overhead and ‘frills’ to the

minimum

• Capability to offer integrated supply chain solution leveraging

on both global and China forwarding network

• Access to professional expertise, IT and project management

from DSV Solutions (Number 5 in Europe)

WHY DSV?

24 | DSV – Q3, 2016

Stronger together

– Let us be your global transport and logistics partner