moves 2 2010 by Jacob Thesander

No. 2 2010

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DSV adopts Global Compact Full cargo insurance Spain heading in new direction

Editorial

ne of the business community’s most frequently used buzzwords is also one of my favourites: business acumen. Not meant as squeezing the last 5% out of a supplier who has no choice but to close the very next day, but business acumen in the sense that trade is based on mutual relationships and must be beneficial for both parties. To DSV, business acumen is also synonymous with visibility, ownership, efficient procedures and the intelligent use of IT. The article from Spain gives examples of business acumen as a means to reverse a trend and to markedly improve the results. In 2010, business acumen also means corporate social responsibility and focusing on sustainability. We live in a globalised world where it is difficult to turn a blind eye to excesses whenever we encounter them. Nor do we want to ignore these excesses. For this reason, in 2009 we signed the United Nations Global Compact, an international initiative started by the United Nations for the purpose of involving the private sector in resolving some of the major social and environmental challenges brought about by globalisation. Businesses are encouraged to support ten principles in the areas of human rights, labour, the environment and anti-corruption. We have done this. At the same time, we are in the process of preparing our own CSR policy, based on both the ten principles of the United Nations

Global Compact, and on lessons we have learned in recent years where we have reported on our employees and the environment as part of the presentation of our financial statements. This is not just a lot of funny business either – but goes well with business acumen. Because, just as we must ensure that our suppliers will also exist tomorrow, it is only natural to take good care of our employees and the environment and ensure that we base our work on an ethical business model. Perhaps individual transports will become more costly if the workers loading and unloading the goods in a specific part of the world are to be given decent wages and humane working conditions. The price will just have to increase – because a transport costs whatever it costs! I am convinced that we comply with basic human rights throughout our organisation, but if a deviation exists somewhere, then hopefully our adoption of the Global Compact and our own CSR policy will right the damage. From now on, it will be up to each DSV employee to make sure the company fulfils its obligations in every action it takes, and that all DSV customers can rest assured that the price they pay for a given transport is based on a proper, respectful handling of our human and natural resources alike. In so doing, corporate social responsibility goes well with our business. DSV gains competitive advantages by adopting the Global Compact and preparing

binding CSR policies. Multinational companies are increasingly demanding that social and environmental considerations be taken throughout the value chain for their products, and DSV – as one of the world’s leading transport and logistics vendors – undertakes to lead the way and show the world that we take our responsibility seriously. A final, and important, element of both the Global Compact and our own CSR policy is the adoption of an official anti-corruption policy. It is a high priority for the company to prepare clear guidelines for how each individual should handle these issues, just as parts of the organisation demand an official position in relation to public authorities and global customers. We anticipate that DSV will adopt the company’s CSR policy before the summer holidays, thus taking another step towards updating our “business acumen” to 2010 standards. Yours sincerely Jens Bjørn Andersen

Social responsibility DSV has adopted the United Nations Global Compact: ten principles governing environmental values and human rights. This will be followed up by the company’s own CSR policy which will apply from Greenland to Manila.

General meeting 2009 was a year of adversity but also a year when DSV bolstered its position and increased its productivity per employee. Five hundred shareholders met the management and board at the general meeting.

“The share price is always right!” Meet DSV’s new IR manager and hear his opinion of day-traders versus the “old” shareholders.

New team in Spain Best practice and business acumen have made their entry in Spain, where a new executive team has taken over. Now deficits must be turned around into profits – already this year.

Ten cows for twelve hundred pounds A DSV employee travelled to Kenya to help orphans get the basic necessities. Read about the joy of helping when you can see its usefulness.

“Would you like insurance?” From now on, the option of cargo insurance will be a natural part of every sale. Many customers erroneously assume their goods are fully insured already today.

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Global forces Strength is multiplied many times over when several countries and divisions work together on serving the same customer. Yamaha and DSV are global business partners and the goal is kandó.

Josephine Touray joins DSV Although her professional dribbling and shooting days are over, Josephine Touray is still scoring lots of goals at her new workplace in Group Legal.

Big opportunities – and pitfalls Growth and good business opportunities are available in South Africa, but changing sets of rules require wide experience and constantly monitoring one’s documentation.

Global Compact Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights within the business’s sphere of influence. Principle 2: Businesses should make sure they are not complicit in human rights abuses. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 4: Businesses should uphold the elimination of all forms of forced and compulsory labour. Principle 5: Businesses should uphold the effective abolition of child labour. Principle 6: Businesses should uphold the elimination of discrimination in respect of employment and occupation. Principle 7: Businesses should support a precautionary approach to environmental challenges. Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility.

Social responsibility – costs notwithstanding DSV has adopted the United Nations Global Compact and at the same time is drafting its own policy for the Group’s corporate social responsibility which will apply all over the world.

Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies. Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

n October last year, DSV adopted the United Nations Global Compact, setting out ten basic principles of corporate social responsibility (CSR) in areas such as human rights, labour, the environment and anti-corruption. Now the principles will form the basis of DSV’s own CSR policy, and everyone is responsible for ensuring that DSV fulfils its obligations – from Greenland to Manila – the costs notwithstanding. “I hope this doesn’t prompt brand-new ways of doing things, because hopefully we should already be able to fulfil our obligations right now,” says CEO Jens Bjørn Andersen, who is willing to pay the price of DSV’s forthcoming CSR policy: “We either fulfil them or we don’t. As we’ve chosen to set our own high standards, we expect our managers to meet the requirements,” he says.

DSV recognises and supports equal human rights and is against discrimination and discriminatory treatment relating to employment and working conditions, regardless of whether this is based on race, gender, or sexual, religious or political orientation or ethic or social background Required by customers The principles of the United Nations Global Compact are generally accepted rights, which are reflected in the general social legislation in many countries. By drafting a dedicated CSR policy, DSV takes the next step and specifically targets the contents of the Global Compact to match the social dimension of a modern transport group. “DSV is and will continue to be a law-abiding company, and if anyone isn’t complying with these rules today, then it might cost something to rectify this, but in the process we’ll get a more realistic picture of what it costs to ship goods from A to B. We’re not afraid of that – quite the contrary. Because we rid ourselves of unfortunate situations at the end of the day,” according to Thomas Susé, Group Environmental Manager, who, together with the management and Group Finance, has been working to draft an outright CSR policy since autumn. “As DSV grows, our customers expect DSV to have a clearly defined policy regarding our environmental and corporate social responsibility. Taking a position on and being able to document our efforts in these areas is a required element of a professional tendering process,” says Michael Ebbe, Group Finance Director.

Required since 2009 For years, DSV has been reporting on its employee and environmental situation, but from the 2009 financial year, the reporting of corporate social responsibility became a requirement when Denmark’s Financial Statements Act was amended. “We already had many of the basic elements, but lacked a general picture of our structure, processes, etc.,” Michael Ebbe explains. He presented these ideas to the board who expressed a basic wish to keep working on this process. “These efforts are statutory now, but it also makes sense as a competition parameter, and some of the concepts are economical, too,” he says. DSV’s upcoming CSR policy will define the “softer” principles of the first nine points of the United Nations Global Compact, whereas a set of rules for ethical business practices reflects the Global Compact’s tenth principle, declaring that “businesses should work against corruption in all its forms”. The draft for these rules was prepared on the initiative of the Air & Sea Division management and describes how DSV expects employees at every level of the organisation to deal with issues such as anti-corruption, kickbacks and bribery. Hazy landscape The principles are autonomously defined in DSV’s CSR policy. They are legally binding to a greater extent and are worded on the basis of the US rules in this area; US customers will often demand that a company has adopted an anti-corruption policy before they will enter into an agreement. But the business ethics provisions are relevant to the daily routines of DSV’s employees in many other countries as well: “The rules lay down a clear framework in a very hazy landscape for what’s acceptable and what isn’t. It’s a very relevant issue to clarify for employees in many different countries, not least in the US,” says Group Finance Director Michael Ebbe. Employees control By adopting the Global Compact in October 2009, DSV undertakes to “embrace, accept and encourage” awareness of the principles to all employees. “You have to set some goals, like reducing occupational injury, and then document your efforts and communicate this new development to all managers and employees, who will serve as controllers on a day-to-day basis. Everyone has not only a right but a duty to report irregularities to the management, if a company doesn’t comply with the principles of the upcoming CSR policy,” says Thomas Susé, adding: “Because DSV’s upcoming CSR policy is based on the Global Compact, which in turn is based on universally accepted principles and conventions, it should not be difficult for any country to abide by its principles.” DSV’s CSR policy and anti-corruption provisions are currently awaiting the final approval of the company’s management and board, which are expected to adopt the final set of rules before the summer holidays.

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Stronger than ever DSV is stronger today than it was before the credit crunch. This is the conclusion of a major shareholder, completely in keeping with the view of the management and board, which instilled optimism at this year’s general meeting.

fter just eighteen months, the integration with ABX is nearing completion. This is about eighteen months earlier than expected and makes DSV readier than ever to benefit from the anticipated growth. “Today, we have a fantastic road network throughout Europe and can note at the same time that the Air & Sea Division is slightly bigger than the Road Division. This provides some splendid opportunities for growth, because the air and sea market is worldwide. There are air and sea margins that exceed those possible in the road network,” according to Kurt K. Larsen, chairman of the board, at the annual general meeting, where he praised the management for how it handled the ABX integration at the same time that the world economy was in a tailspin:

“Today, we ’re a stronger, m ore complete c ompany than ever,” Jens Bjørn Andersen sa id.

Claus Wiinblad (left) head of ATP’s investments in Danish shares, praised DSV at the general meeting for its initiatives in the areas of the environment and CSR.

Hard work “I’ve personally experienced heading up large-scale integration efforts and it’s hard work. I was actually astonished at how well the management has handled the situation, where we not only had to implement ABX but also make four or five thousand employees redundant. If that hadn’t happened, we’d have been facing a very different situation today,” he said and was supplemented by CEO Jens Bjørn Andersen in his review of the year’s results. Tough process “It was crucial to adapt the organisation to the declining volumes but it was also an unusually tough, difficult process. Much of the redundancy was natural, but we also had to bid farewell to many loyal, skilled employees,” he says, concluding that the company’s “asset light” strategy was “successfully tested”. The level of costs was reduced and the company has adapted to

the new volumes. According to the CEO, DSV won market shares in the company’s most important markets, while reducing its debt at the same time. “Today, we’re a stronger, more complete company than ever, with a well-developed Air & Sea and Road network, which is supported by Solutions. We’re lean and ready to grow in 2010,” Jens Bjørn Andersen said, as he presented the meeting with a revised, long-term financial target: organic growth of 5% a year and EBITA (earnings before interest, tax and amortisation) of 7%. “It’s optimistic but absolutely realistic. There’s no reason to lay out long-term targets we can already meet,” he said. Praise from shareholders After the review of the year’s results, the microphone was open to shareholders who expressed great confidence in the management. ATP’s Claus Wiinblad praised the management for steadily navigating through a difficult year and concluded that he was “convinced DSV is stronger now than it was before the crisis.” And, like several other shareholders, he thanked DSV for the company’s initiatives relating to CSR (corporate social responsibility) and reducing the environmental impact. “It’s good to hear these areas are now in the limelight,” he said. Birgit Nørgaard joins the board Kurt K. Larsen, Erik B. Pedersen, Kaj Christensen, Per Skov and Anette Sadolin were re-elected to the board, and this year they were supplemented by experienced business executive Birgit W. Nørgaard, MBA and MSc. DSV’s new board member has previously been the managing director for companies like Danisco, TDC and, recently, Grontmij Carl Bro. Read the profile of Birgit Nørgaard on the back page.

IR manager Flemming Ole Nielsen is responsible for providing information about DSV to investors and analysts.

Popular share with an “ X factor” DSV passes the 40,000-shareholder milestone and appoints an IR manager to boost the information issued by the company to shareholders and investors.

Balancing act The task involves helping management to inform the market so no one receives more information than anyone else and everyone gets the information which is crucial for pricing the share. “Investor relations can never replace a sound, healthy business which – if it really is good – will sell itself. But we have to fight for the capital available in the market, and we do this by maintaining a high level of transparency and providing sufficient information. And the ever-widening circle of investors of analysts who follow us requires DSV to communicate broadly to the market. For instance, after publishing DSV’s 2009 Annual Report, we’ve held meetings in Denmark and been on road shows in New York, Boston, London, Edinburgh, Paris, Brussels and Stockholm,” he says.

hen DSV acquired Belgium’s ABX Logistics in 2008, DSV changed its status at the same time from small cap to mid cap – according to international standards. This made DSV’s shares a more interesting investment for major institutional investors, and foreign analysts became aware of the DSV share and requested ongoing information. Today, most of the registered shares are listed abroad, primarily in the UK and the US, and as a result the share is presented both in Denmark and abroad (as “road shows”). Whereas the DSV shares that are sold abroad are primarily purchased by professional investors, Danish shareholders are just as often private individuals who have invested their pension savings in one of the OMX index’s most highly traded securities: “The DSV share is one of the most highly traded five or six securities on the Danish stock exchange, which indicates the market’s great confidence in the share,” according to Flemming Ole Nielsen, a satisfied, newly appointed IR Manager, who readily quotes the analysts who refer to DSV as an “investor darling” with an “X factor”.

All shareholders are equally valuable To DSV’s new IR manager, the “old” shareholders and the fast day-traders are prerequisites for one another – and thus equally important to the company. “Day-traders are part of the market, and because of their many transactions, they’re part of effectively pricing the share and generating cash flow. Each day all year round, DSV shares are traded for EUR 10.75 million, and this high level of activity helps to make the share attractive. On the other hand, I hope the many shareholders regard DSV as a long-term investment, because that’s how the company is run. We have shareholders who’ve been with us since 1976 and who’ve always believed in DSV, and we’re very appreciative of them,” Flemming Ole Nielsen says.

Several years of growth It takes several years of stable growth and development and a sound, healthy business to gain the reputation which the IR manager must now support – together with the Group management – by issuing information about DSV to shareholders and the stock market alike and by ensuring that this information is credible and provides a true and fair view of the company. “My original background is accounting, and I’m based in Group Finance, so I know DSV inside out, and for years I’ve helped prepare the financial statements for the management, especially in the Air & Sea Division,” says the 39-year-old IR manager, who will now be providing information about DSV to a group of fifteen Danish and foreign analysts, as well as investors. “The information must be rock-solid and describe our enterprise,” Flemming Ole Nielsen says. Flemming will be managing the IR area together with Helle K. Hansen, Executive Assistant. “We can expect lots of goodwill. The market expresses a high degree of confidence in the information DSV provides,” he says.

The price is always right When the world is hit by a crisis and house prices suddenly drop to half of what they were two years ago, this can’t help but affect share prices. Production will fall, and companies will trade less, but even in stable periods with sound operations, prices can fluctuate both up and down for a variety of reasons. “Theoretically, the share price is always right! It’s useless to complain if the rest of the world fails to see the beauty of our operations, but if we think this view is distorted, all we can do is improve our communications,” Flemming Ole Nielsen says. He can be reached at investor@dsv.com.

Sound business acumen to pave the way in Spain F

or DSV Road Spain the target is clear: To balance the books this year even, and then achieve the same profitability as the rest of the organisation. And by what means? The same one that has paid dividends in other highly functional Road countries such as Sweden, the UK, Norway, Finland and Denmark: visibility for the individual forwarding agent in his/ her day-to-day work so that they can appraise whether what they are doing is good or bad. “The operating results in Spain used to be tools for management primarily. That goes against the grain of the DSV culture, in which the individual forwarder has to take ownership and exercise sound business sense. That’s the only way for us to exploit our full potential and make sure the employees are toeing the line with the management and we’re doing things the best way possible”, says the COO at DSV Road A/S, Søren Schmidt. Given greater visibility within the organisation, he foresees no problem achieving positive results in Spain following the integration with ABX Logistics: “We’ve drawn up a detailed game plan and can already see that we’re heading firmly in the right direction”, he says. Full-on strategy The man who has been given the job of reversing the sorry development at DSV

A fresh team is spearheading the Spanish set-up—not re-inventing the wheel, but rolling out implementation of the best from the rest of the organisation.

Road Spain, where last year the division made a loss of EUR 5.1m (of a turnover of EUR 103m) is the Swede Magnus Malmqvist. “I plan to make use of the ideas and initiatives I know work, in which case I expect everyone to back me totally on the changes”, says Magnus Malmqvist, who has been hand-picked for the assignment: “Instead of complicating matters, he makes things simple and straightforward, as well as being good at making decisions

DSV’s entry into Spain started in 2006 with the buy-out of Frans Maas. In 2008 the organisation expanded with the acquisition of ABX Logistics, so that DSV currently operates out of 19 locations with 620 employees spread over Road, Air & Sea and Solutions, as well as a number of logistics services specially designed for the motorcycle industry, trade fairs and exhibitions, hospitals and the pharmaceutical industry etc. 10

and getting things done in life”, Søren Schmidt says. Copy & paste “In terms of organisation and manpower, we’ve now reached the point where we have the right tool for the present situation; now it’s a case of tweaking things and making the work more savvy and far more efficient, enabling us to handle larger volumes with fewer hands”, says Magnus Malmqvist, who has topped up the toolbox with Swedish methods for ensuring best practice. “We’re taking the Scandinavian corporate culture to Spain. The employees need to have total insight into the performance they deliver. Management alone can’t buck the trend—we need all hands on deck to help change course. We want to get the forwarders thinking off the top of their own heads; and they’re often in for a rude surprise when they figure out that there may well be smarter ways of going about things. After all, they’re just as keen to make a good fist of it and show how good they are at their jobs, so that they don’t lose them. There must be transparency to what is happening. Once the individual departments are turning a profit, we’ll start tacking on the bolt-ons”, explains Magnus Malmqvist, who goes on to say:

Three hot-off-the-press managing directors are set to teach the Spanish organisation the best of the best from around the world: From the left: Xavier Juncosa, Magnus Malmqvist, and Iban Mas. The headquarters at Rubi, Barcelona, where there is a 60,000 m2 “logistics hotel”, including 8,300 m2 for hazardous goods.

Good operating results “Spain is actually posting fine operating results, and that’s a very positive thing. The problem is just that it has taken far too many people to do the job, because the costs have been far too heavy. That’s why we know precisely what medicine to mete out: the work processes need to be rationalised and the IT systems rigorously applied to a far greater extent, using online booking and automated billing, for example. What’s more, we’re too small on Road in Spain, so 2010 is going to be the year when we turn up the heat on sales work. We’ve adopted a highly aggressive strategy,” he says, being complemented by Søren Schmidt, who has fresh experience from both Germany and France under his belt: “We achieve an altogether different degree of efficiency when we utilise best practice from the best countries. We’ve done that in Germany, we’ve started to do it in France, and now it’s Spain’s turn,” he says. Air & Sea on their way to the top Thanks to the merger with ABX in Spain the Air & Sea division has changed radically his face and results in the DSV network. Since October 2008 Iban Mas is the new managing director on board. After 10 years of great success in ABX this 36 years old manager from Barcelona has implemented a new young and fresh

organisation with a clear challenge: “In the following years we must be the leader in the Spanish freight forwarding field and among the top ten DSV’s Air & Sea countries”. The key of the success is the people: - At home: “My inspiration is my fantastic wife Laia always patient and supporting me 100% and of course my two daughters Carla (7) and Aina (5) and my new son Iban Jr (1). This last 10 years I’ve been travelling all around the world networking with my workmates and learning as much as possible how to make my company strong and well known. Without the total support of the family it is very difficult to become a good manager”. - And at work: “Manel, Maria Jose, Albert, Toni, Juan Antonio, Esther, Juanjo, Cristobal, Manuel, David, Alberto, Vicky, Alfredo, Paco, Miguelon, Jose Manuel, Sagra, Edu, David, Gonzalo, ... We are a nice team of 170 skilled people spread in 8 branches all over the country and today we have just a 1% of market share in our industry. It means that with my team, a serious strategy and organic growth we should easily become the key player in Spain. Jorgen Moller is my sponsor and I will not let him down”. Iban’s wish is that one day Spain will be the “fashion country” in the DSV network, the country of the opportunities

for business and for fun. He would like everybody from DSV to visit his country (Spain is the 2nd most visited touristic country in the world) and he’s ready for developing mutual trade lanes. “With DSV Spain sky will be the limit”, he says. New management creates sense of security At Solutions the baton has been passed on to managing director Xavier Juncosa, who in addition to focusing on making the very most of the warehousing facilities at Rubi in Barcelona, anticipates growth on the basis of central Spain (Madrid). “Madrid is the natural logistical centre of the Iberian peninsula, and we have superb facilities. That—combined with market conditions—ranks us very strongly in relation to potential customers”, says Xavier Juncosa, who expects to achieve a position among the ten largest logistics providers in Spain shortly. Xavier Juncosa highlights the lack of stability at managerial level as the primary cause of fluctuating results, because instability at managerial level creates uncertainty among the employees—and among the customers: “The very best way of gaining customers’ confidence is by giving them the security of knowing that their negotiating partners will be there for them in the future too”, he says.

The task was to work with 56 of the neediest families at Karundas, situated near Mount Kenya.

Helping bereaved children in Kenya Kids Alive International is a charity that runs homes for children who have lost one or both parents to AIDS. With the help of colleagues from DSV in the UK, a group of seven â&#x20AC;&#x201C; including Alan Burnet from DSV Air & Sea Ltd â&#x20AC;&#x201C; set off on a ten-day mission to Kenya.

By Alan Burnet, Operations Director, DSV Air & Sea Ltd.

ur base was the Children’s Home at Karundas near Mount Kenya, and we had been asked to work in the surrounding local community with 56 of the neediest families. The lack of clean drinking water is a serious problem and our project included distributing water filters, which we had brought with us, and finding storage containers for the families in the local community. We also provided food, clothing, beds, chickens and cows and provided several local women with the means to start up a small knitting business for making hats for families and friends and selling or bartering them at the local market in Chaka. We arrived at Nairobi at 5 a.m. in beautiful sunny weather and big African skies. We were due to be met by a bus to take us and the 112 brightly coloured, 70-litre plastic bins we had sourced locally through DSV’s partners in Kenya, Freight In Time Ltd. Graeme Hearne had made all the arrangements and was fortunately on hand at the airport to take us to their offices, as the pre-booked bus was delayed. By nightfall we had arrived at the Children’s Home and we were welcomed and shown our accommodation. After a lovely home-cooked Kenyan dinner, we spent the evening with the children who sang and entertained us. They sure knew how to sing and dance and soon had us all on our feet, and we even learned a bit of Swahili. The following morning I got up early at 5 a.m. to go and be with those children who have to take daily medication to slow down the HIV. It breaks your heart to see these children and know their lives will be cut short by this cruel disease. The children themselves are such a joy to be around and love having visitors from abroad. Ann and I were working with Genesmus the local pastor and Pauline the social worker. Part of my job was to negotiate with the market traders for all the provisions including rice, flour, chickens and cows – quite different from talking to shipping lines, suppliers and customers about prices. Chas and Steve were building beds and chicken coups from recycled wood. Diane, Dorothy, who at 89 amazes us all with her energy, and Abbi, 15, are teaching the local women to use the knitting looms we brought to make woollen hats, as it gets cold when the sun goes down.

The children have to take medication every day to slow down the development of the HIV infection into AIDS.

By Wednesday the bungalow was full of provisions, and now we started the process of going out to the families to deliver the provisions and chickens and install the water filters. The families were all very welcoming and smiling and greeted us many with tears of joy. I was not sure how I would cope with seeing so many people with so little but they have a real joy and community spirit about them. The homes are wooden, not watertight, with only one or two rooms, an open fire and no toilet. Many families had only the mother and children, as the father was either away looking for work, had died or had left his wife and family. We spent time with each family, playing with the children, talking to and praying with the adults. Despite hardship, their faith is very strong.

The aid workers were well received by the locals, who invited them to a home-cooked Kenyan dinner, and singing and dancing. We had raised enough funds to buy new shoes for all twenty of the street children who lived in the town of Chaka below the Children’s Home. Many staff at DSV UK had been kind enough to send me football shirts from Premier League teams, and on Thursday we measured their feet and returned with shoes, socks and the football shirts. The street children have been abandoned by their parents and many are sniffing glue and sleeping rough without any footwear. We washed and dried their feet, and they loved their Premier League football shirts, although one lad refused to wear his Portsmouth shirt! We had a large crowd of locals and other children along with the mayor and local chief, and we played games and shared biscuits and sweets while we were fitting the shoes. It all ended in a big water fight where great fun was had by all. On Thursday we had to go to another valley to try to buy cows. The three cows we had seen earlier in the week had been too expensive, and the vet had said they were not gestating as the herdsman promised. I had been warned this would be a slow process and could take all week, but the local vet had found another herdsman who wanted to sell. We had a budget for only six cows or £1,200, but Ann told me later she had wanted ten. Richard the herdsman offered us six females, three with calves, but the price was £300 for each adult. Our budget was £190 per adult cow, since we would have vet bills to pay also. Never expecting him to agree, I explained to Richard what we were doing and why and that we could only afford to pay £190 each, but he immediately agreed. I then thought these cows must be sick and added that the deal was conditional on the vet declaring they were healthy. When we

Full compensation – and 10% in addition to that

returned the next day, there were ten animals in the pen, Richard had found another female with a calf and he sold us four cows with their calves and two other milking cows. The vet pronounced all ten healthy, and hands were shaken again to seal the deal. While visiting a family, we noticed that the school-age son was not in school. His mother explained she could not afford the £5-a-term fee to cover his food while at school. The team agreed to pay for his next two school years, and John having overheard us was back with us in his school uniform on within a minute, so we took him back to school that afternoon.

From now on, customers will be

The women dressed in traditional garb came to collect the cows and on Saturday morning before we left, we had great fun with all the families who had come to collect their milking cows.

offered cargo insurance when they book their transports. DSV Insurance will endeavour to disburse compensation within a week and can even offer en extra 10% in compensation – on certain conditions.

any people think the cargo is automatically insured at full value when they turn over their goods to a transport company. But in fact their goods are only automatically covered via the mandatory carrier liability which provides limited compensation depending on cargo weight. “If a pallet of notebooks or microprocessors gets stolen from a lorry at a rest area, for instance, then it’s very unfortunate. They don’t weigh much but they’re very valuable,” says Martin Andreasen, Senior Manager in Group Insurance.

Kids Alive International was based near the children’s home at Karundas near Mount Kenya.

Surprising to many “Many people think that after a loss or theft, all they have to do is phone us to tell us where to transfer the money. They’re surprised to discover their compensation is paid according to weight, and that it will take a while before their money arrives – if they’re entitled to any compensation at all,” Martin Andreasen says. Since last October, Andreasen has been heading DSV Insurance A/S, which offers customers full insurance cover for their goods – also with the option of a 10% imaginary profit on top of the possible compensation amount, disbursed on the basis of the goods’ value in the event of a total loss and/or complete non-delivery. “If a customer assesses that its goods are in an at-risk category, then it’s worth it for them to take out the insurance,” Martin Andreasen says, emphasising the advantages:

My thanks go to Armit Shah at Freight In Time, Graeme Hearne, who will be rejoining DSV Air & Sea Ltd UK in April after spending two years at Freight In Time in Nairobi, and Arnie Lord for their tremendous help and support, along with many colleagues in DSV UK who donated football shirts and money. I would encourage everyone to get involved in this type of project, as it was a real joy and privilege to spend time with those lovely families in Kenya. Check out www.kidsaliveuk.org for more information on their work. Although are plenty of other opportunities to volunteer for all kinds of projects, consider it a holiday of a different sort.

DSV’s customers can take out insurance cover on their goods as part of booking the transport – for each shipment or for a year a time, for instance.

whether it takes place at a personal meeting, over the phone or via our online bookings.”

Advantages in brief 1) Coverage of all risks, regardless of whether they involve theft, damage/loss or faulty handling. 2) Competitive prices. 3) The option of taking out insurance coverage per shipment, but also on a monthly or yearly basis. 4) One-stop shopping. 5) Quick claims processing: endeavours to disburse compensation within seven days. 6) Full-value compensation (not depending on weight). Reinsured DSV Insurance A/S is a “captive insurance company” (i.e. set up to insure the activities of its owners, the Group), and is reinsured at Royal Sun Alliance. DSV Insurance A/S manages both cargo insurance and carrier liability policies, as well as the policies taken out by DSV A/S such as third-party liability insurance for the management and the board. In addition, it manages buildings insurance policies in a number of countries, and DSV Insurance A/S’s goal is to take over as many insurance policies as it is both possible and expedient to gather in one place. “This will lower the cost of the policies and improve competitiveness,” Martin Andreasen says. Together with the rest of the Group Insurance department, Andreasen has been busy during the initial months after the company was founded informing shipping agents and sales reps about the new product: “Informing our customers of this option should be a completely natural part of a booking or sales meeting – regardless of

Competitive The cost of the policies will vary from one country to another because of the big differences in both the risk and the competitive situation. “We’ve scanned the market and are convinced that our insurance product will be attractive to our customers. The added cost is actually insignificant - around 0.25% of the goods’ value in the premium – and in this credit crunch era, the frequency of losses and theft is rising, so it’s often an excellent idea to insure your goods,” Martin Andreasen says. Andreasen is in touch with the national insurance coordinators in the individual countries who are responsible for setting the process in motion throughout the organisation and running this in the local area. “We’ve begun to implement the scheme in our biggest countries, and during the spring, insurance will hopefully become an integral part of a booking so customers will have to consider the option every time,” he says, adding that the insurance policy can also be taken out for a month or a year at a time or for all transports from a global customer, for instance. Insures 99% of all cargo Most cargo is insurable through DSV Insurance A/S, but there will be instances where DSV cannot offer this. “We can probably insure 99% of everything we carry, but in a few countries like Iraq, Iran and Afghanistan, we’ll be reviewing every single case. The same will especially be true of expensive transports and products like mobile phones, CPUs and the like,” Martin Andersen says, managing a world-wide sales budget of EUR 10 million in 2010.

With 36 world championships, Yamaha has had a huge impact on motorcycle racing. Pictured here is Yamaha driver and nine-fold Grand Price World Championship Valentino Rossi, enjoying yet another victory.

Yamaha gives Kando [Kando is a Japanese word for the feeling of deep satisfaction and intense excitement evoked by encountering something of unique value.]

DSV has “enormous strength” when collaborating across our divisions. More than twelve countries are involved in the work for Yamaha Motor, who expect nothing short of the best – and at the best price.

ver since the Yamaha Motor Company was founded in 1955, the company has sought to touch the hearts of its users by creating products that make life more fun and open up possibilities for each user – to instil kando in the lives of its customers. To Tobias de Neef, Manager Business Process Control (DSV) and Account Manager for Yamaha Motor, the goal is “full satisfaction” in the business relationship, which has been on the agenda ever since Yamaha moved into the terminal in Castel san Giovanni (Milan), Italy, in October 2004. “Yamaha Motor is not a customer you get overnight. Japanese businesspeople have a different mentality than their British and US counterparts. They think things over thoroughly before making a decision – and stick to it. So as long as you do a proper job and continue to think together with them to find the most effective solution, you have a long-term customer.” From spare parts to fine distribution The relationship with Yamaha actually predates 2004. Frans Maas (acquired by DSV A/S in 2006) was distributing spare parts in Europe for Yamaha already in the early 1990s. Today, DSV is deeply involved in Yamaha’s European distribution – from the southern tip of Spain to northern Scandinavia – everything from scooters, mopeds, ATVs and motorcycles to outboard motors, rubber boats, snowmobiles and golf cars. “We’re probably Yamaha’s largest transporter of units in Europe, but it is crucial for Yamaha to spread the risk, which is why they also have business relations with other major international transport companies,” according to Tobias de Neef, who has experienced how Yamaha, like other multinationals, has reduced its storage capacity during the economic crisis. “We’re more deeply involved with Yamaha than ever, but while production was peaking in 2008, sales dropped sharply, causing significant production cuts in March 2009. After this, storage capacity dwindled, but Yamaha is still affected by the credit crunch, not least in Spain where unemployment has risen to 20%, but also due to a strengthening of the Yen. On the other hand, we’re pleased to have landed a number of other new tasks, such as the distribution of units from the warehouse in Hamburg to the dealers in Scandinavia,” de Neef says. Several divisions Yamaha is a dream customer for DSV not only because the motor-making group is truly global, thus fitting hand in glove with DSV’s world-wide network. It is equally beneficial for DSV to have a business relationship that is spread across several divisions within the DSV group. “In so doing, as a customer Yamaha helps to strengthen the ties within DSV. Even though we’ve divided our services into different divisions, it’s crucial for us to operate as one company and for our customers to perceive us as one company,” according to Rene Falch Olesen, Chief Commercial Officer. He explains: “We’re learning more and more about the expertise present in every corner of our enterprise each passing day. DSV has enormous strength when we come up with solutions by collaborating across our divisions, which is naturally an area of great focus. Why keep inventing the proverbial wheel, when

Yamaha Motor Europe NV (YME) is the HQ for all Yamaha Motor operations in Europe and covers all sales, engineering and manufacturing activities with 25 sales offices, 4 factories (in France, Spain and Italy) and 1 Engineering & Purchasing Centre in Italy. The Logistics Operations Group in YME is responsible for development and implementation of SCM/logistics concepts and control over logistics operations for all products. Key is reliable delivery of units and genuine parts/accessories to Yamaha dealers within agreed availability levels, lead times and costs. Products are sourced from factories in Japan, Far East, America and Europe to and distributed from 6 European Distribution Centres (Amsterdam & Lyon for parts and accessories, Lille, Hamburg, Milan and Barcelona for finished products) to approx. 7.000 dealers in Europe. The logistics operations are supported by a dedicated Yamaha logistics IT system. Technical workshops in the warehouses enable a flexible approach to markets in case of marketing & sales opportunities (value adding activity) and for quality assurance.

we can focus our energy on improving it every day instead?” he asks. Dream customer Everyone knows Yamaha and has been in touch with the company’s products. Tobias de Neef can’t stop glancing at the boxes now and then and imagining that the next winner of the Superbike World Championship may be right there on the pallet: “It’s additionally pleasing that the customer is Yamaha. We’ve all dreamt of owning a Yamaha when we were kids, and anyone with petrol in their veins has owned one – including me,” he says, and hopes that his fondness for Yamaha will last for many years to come. “Even though it’s hard to find a more loyal customer, this is no guarantee of lifelong partnership. Like other multinationals, Yamaha is under continuous pressure to look for the best balance in service and the most cost-effective solution. As the business we do for Yamaha has grown, this pressure is put on DSV. Therefore we intend to deliver the best total solution to Yamaha – in terms of price, creativity and quality alike,” Tobias de Neef says.

Increasing collaboration Yamaha and DSV continuously develop their mutual business, as described below.

ince October 2005, Yamaha has had 15,000 m² storage facilities at DSV in Rubi, Barcelona. One year earlier DSV opened up a 27,000 m² warehouse in Castel San Giovanni, Milan. From Milan units are shipped to a number of platforms in Italy and Austria. In both warehouses DSV performs VAT declarations and customs clearance The Rubi storage facility receives 600 double-deck trailers a year from European factories and 800 ship containers with 1,800 ocean pallets (with three motorcycles each) from overseas destinations. Each year, 70,000 units depart from the storage facility, equating to 1,800 trailers destined for platforms in Spain, Portugal and the south of France.

DSV has 28 dedicated double-deckers for transporting Yamaha’s products.

Since October 2009, DSV has also been making line hauls from Hamburg to Norway (Oslo), Sweden (Jönköping) and Denmark (Brøndby). From these platforms, DSV organises the fine distribution to dealers and distributors in Scandinavia.

Until last summer Josephine Touray was a top player on the Danish national handball team, playing a total of 123 games and scoring 383 goals. She has won both Olympic gold and the European Championship with the national side.

Her competitive gene is intact! Josephine Touray bid farewell to professional team handball and welcomes her new start at DSV. And even if youâ&#x20AC;&#x2122;re one of the best team-handball players in the world, you can suddenly feel wet behind the ears all over again.

Josephine Touray had to familiarise herself with a brandnew world at DSV, which has required lots of reading. “It’s completely different from what I’m leaving behind,” she says.

n Ludvig Holberg’s comedy Jeppe of the Hill, Jeppe is a peasant who falls asleep dead-drunk in a baron’s bed. The next day – after having spoken the famous words, “Am I dreaming, or am I awake?”, he soon adapts to his new imagined role as a baron. To 30-year-old Josephine Touray, the last six months have felt like a topsy-turvy version of Holberg’s Jeppe. From being one of the most highly profiled and valuable players on the All-Denmark team, this former team-handball player is in the process of adjusting to an anonymous existence as a newly graduated legal staff member in DSV. Josephine has to start all over – and here she is everything but an elite player: “It’s been hard to make the transition from being a highly profiled member of the national team to joining a company where there are so many people with insight into a different world. As a result, I have to get used to being both a new employee and a recent grad, and that takes time. But I know I’ve made the right decision!” she says. Hard life During her eight-year All-Denmark career, Josephine Touray played 123 national games and scored 383 goals. This ranks

her ninth on the list of all-time national-team top scorers, and her formula for success is talent mixed with an incredibly demanding effort. Each day was structured down to the last detail, with everything focused on the next important game. Hard daily workouts in the exercise room and on the court. Even her weekends were fully dedicated to games and training. “My daily life was totally dominated by team handball. I considered the consequences of everything I did, the food I ordered, and so on,” Josephine Touray says. Although she enjoyed the tough, goal-oriented effort, she is also aware of the flipside of the coin. “Near the end, it was hard to be injured on the bench, constantly having to fight to stay up to par. It was not just a life of luxury. Now I often wonder where all the time went during my study years? It feels odd to have studied for six years and not really know anybody,” she says. “Winning the gold medal was fantastic” Her life as a professional team handball player was rewarding for this young woman from West Denmark, and it was a rush for Josephine to walk onto the court in championship games where the whole population of Denmark was watching and

then get the job done – regardless of whether she was playing for her club or wearing the red and white colours of the national team: “These experiences are put into perspective when you suddenly stop. It was a splendid life and winning the Olympic gold medal in 2004 was fantastic, and I really miss the games once in a while, but I’m glad I do, too. Because it means I did the right thing, that those years weren’t a waste of time,” Josephine says, emphasising that it was her own choice to stop her team handball career last summer: “I could’ve played more games, but I lacked the motivation. I was starting to feel restless and wanted to try something else.” New life Now she has plenty of time on her hands, not least at the weekends, which used to be occupied by games. “At first, it was hard to relax and enjoy it, because my friends were still playing handball, so whenever I’m off work, they’re out playing games,” Josephine says. Even so she enjoys concentrating on her job at DSV – and her sense of recouped freedom. “Running takes on a whole different meaning when it’s something you do for yourself and not because you have to. I still exert myself, and sometimes it feels good to give it everything I’ve got when I’m interval training on the treadmill. My workouts vary, however. Once to three times a week of running and fitness – I’ll probably never stop.”

Group Legal is DSV’s in-house

group-wide legal department, established in June 2008 with the engagement of officially-appointed lawyer Peter Ring. The department, which comprises Peter and Josephine, works with the legal aspects of acquiring and divesting companies, articles of association, contracts, preparing powers of attorney and providing legal counsel for major disputes and litigation. “Here it’s a question of having the ability to assert yourself and not hesitating to take responsibility. Josephine has lived up this to the full. Because of her experience, she’s used to coping superbly under pressure and stress – also better than most,” Peter Ring says. He predicts the department will come under increasing pressure as DSV grows. “The quality of our legal compliance has increased but we have the potential to improve even more, because as we grow, we’re landing even bigger contracts, getting bigger buildings, buying and selling more and getting involved in more litigation. We shouldn’t hasten these trends, but in my opinion, the prospects for Group Legal are huge,” he says.

It’s a matter of winning It’s been a big mouthful for Josephine Touray to leave a structured life and enjoy her freedom and a “civilian” job at DSV. She completed her Masters in Business Law studies concurrently with her turbocharged team handball career, and getting her degree is a typical achievement for this ambitious, competitively minded person, who believes that the professional ethics and approach from her elite sports career can be directly transferred to a company: “There’s a lot I can use, but I also think that companies know this. In sports, we’re used to making an incredibly focused effort and we fight tooth and nail to achieve the goals we set. This mindset is useful in companies, because they’ve got targets to achieve, too. We athletes are used to staying cool under pressure, and that’s when the competitive gene so prevalent among athletes comes in handy. It’s a matter of winning, which is true here, too,” Josephine says. She approaches her new job with an attitude which could be stress-inducing – but this is not something she fears.

She has a plan “I don’t like loose ends. I want to follow through on whatever I’m doing and get better at it. And if I make a mistake, which is unavoidable, especially as a new graduate, I won’t make the same mistake twice, because I will have learned from it. On the other hand, I’m used to structuring my daily life to include workouts, studies, rest and a proper diet, so I’ve learned to plan how my day should look. I’m fully aware of what I can achieve and what I can’t,” she says. Josephine Touray fell asleep in “the baron’s bed” and woke up as an ordinary person. But perhaps with a few more superpowers than most.

1: The CV9035 can convey a crew of three, as well as seven fully armed infantry troops. Its top speed is 70 km/h. 2: Sannette Mader, SATEC Supply, seated beside Ian Losinsky, DSV Turners Shipping. Allan De Beer (right), also of SATEC Supply. 3: Mr Hassan Mall, Director of Malls Tiles, which is South Africaâ&#x20AC;&#x2122;s largest independent tile distributor and 100% black-owned.

Armoured infantry vehicles sent to South Africa for testing DSV Turner Shipping, South Africa, operates in a “veritable minefield” where constant control is a prerequisite for success.

ith a total weight of 101,683 kg, three of the Danish military’s CV9035 Armoured Infantry Fighting Vehicles were flown in a chartered Antonov 124 aircraft to Upington Airport, South Africa. The vehicles will be tested in the extreme temperatures of Northern Cape, before being deployed to Afghanistan to support the Danish troops stationed there. The shipment included the three armoured vehicles, testing equipment, several pallets of ammunition and Danish military personnel. Sapping heat DSV Turners Shipping’s arrangements included getting the special permits required for importing and conveying ammunition by road, immigration permits for foreign nationals (the Danes) and an escort for the low-bed trailers used for the conveyance. The CV9035s were unloaded from the aircraft in sapping 45 °C heat onto the apron of Upington Airport, before being reloaded and conveyed 300 km to a testing facility in Alkantpan (formerly Coperton). According to Rishen Naidoo, Airfreight Manager of DSV Turners Shipping, organising the import of the CV9035s, ammunition and equipment had been complex but careful planning and a reconnaissance trip to Upington to inspect the local conditions ensured the success of the project. The project is DVS Turners Shipping’s latest major success in the African continent south of the Sahara. Minefield According to Blain Kondiah, DSV Turners Shipping’s National Operations Director, there are great opportunities in Africa for winning new business but there are also many pitfalls. “The constantly changing sets of rules make shipping to this continent a veritable minefield for inexperienced players. But our organisation has been operating in this vast region for almost 115 years, and has basic experience in ensuring that reliable, punctual and precise delivery is far from an impossible mission,” he says, adding: “The secret lies in never taking anything for granted and treating every shipment to Africa as a new project requiring detailed planning and constantly checking to make sure that

the documentation required is complete and up to date.” 2,000 shipments a month DSV Turners Shipping is now handling more than 2,000 shipments a month south of the Sahara, and its list of clients includes household names like Coca-Cola, Shell and BP – as well as major local companies. Malls Tiles, the largest independent ceramic tile distributer in South Africa – and 100% black-owned – has relied on DSV Turners Shipping for its clearing and forwarding needs for over thirty years. According to the company’s director Hassan Mall, Turners has played a vital role in helping his company from small beginnings to its current position, where it imports around 4,000 containers of tiles each year. Complex requirements In addition to Malls’ activities within South Africa, it distributes products over a wide area of Southern Africa and to Indian Ocean islands like Mauritius. Hassan Mall confirms that the bureaucratic requirements for distributing goods are complex, but Turners’ experience with exporting into Africa had considerably reduced the complexity of the Malls’ import activities. Time-sensitive cargo South-Africa based SATEC Supply saw a dramatic increase in its export turnover last year, partly as a result of DSV Turners Shipping’s handling of its shipments into Africa. DSV Turners Shipping staff recently organised a nine-tonne shipment of telecom equipment to Niger, and Sannette Mader, SATEC Supply, said that shipment arrived perfectly on schedule. “Our company has built up a reputation for reliable and speedy deliveries thanks to DSV Turners Shipping,” she says and also singles out DSV Turners Shipping’s warehousing division, which produces custom-made crating for the shipments. “It’s their eye for detail which makes DSV an indispensable partner to us,” she says.

A tough cookie - if that’s what it takes DSV has a new board member: Birgit W. Nørgaard, 51, sees great development potential for DSV, and has previously demonstrated she has what it takes to exploit it.

irgit Nørgaard’s appointment to DSV’s board of directors fulfils two wishes for the make-up of this executive decision-making body: a more balanced apportionment of men and women in the boardroom and a great bolstering of the body’s international experience. Because not only has economist Birgit Nørgaard been managing director of Carl Bro since 2003, she was also a member of the Group Management of Europe’s fifth-largest consulting engineer firm at the same time. Birgit Nørgaard was CFO of Carl Bro for less than two years before her appointment, and soon after she took over her managing director duties, she initiated a sweeping rationalisation of the company. Through targeted improvements and focusing on the core business, she was a key figure in reversing a trend which turned an annual loss – almost EUR 13.5 million when she joined the organisation – into profits of EUR 10 million last year.

Are you a tough cookie? “If that’s what it takes, I can be, yes. When a company gets in trouble, it’s important to resolve the problems as quickly as possible to move on. Sticking your head in the sand is pointless, and as managing director you have to take the lead in making the decisions required.” What is the driving force in your career? “Changing things for the better, and in this light, it’s tedious when everything runs smoothly. Remember, revenue is not generated by focusing solely on earnings, but by making sure your customers think you’re a splendid partner, by delivering

attractive, competitive services and by ensuring your employees think your company is a stimulating place to work. You have to keep these factors in focus to achieve profitability. And there’s always room to improve something, most likely even in a company like DSV, which has generated impressive growth and earnings even in times of crisis.”

How do you view your job as a DSV board member? “Besides the overarching supervision of the company, I hope I’ll be able to inspire continued development and growth and to encourage the out-of-the-box approaches required for developing the company’s relationships with its customers – and with the rest of the world as well. In this context, I’m keen on ensuring that we develop the business while maintaining sharp focus on reducing our carbon emissions and otherwise observing the Corporate Social Responsibility principles.” What strength do you bring to DSV’s board? “I’ve tried many things in terms of ensuring financial improvements. DSV has an impressive track record, and I’ve learned that potential improvements are available in a few markets. I’m also focused on developing the business: for instance, I see great potential in Asia which is where growth will be generated in future and where a large segment of the world’s population lives. Inter-Asian trade will open up a huge market. Achieving growth in this market requires patience and sound, personal relationships, which certainly entails great possibilities for professionalising the transport DSV can provide.”

Publisher: DSV A/S. Editor: Mads Wedderkopp. Send content suggestions to moves@dsv.com, tel.: +45 24606369 Distribution enquiries: Staff: Global Marketing, info@dsv.com Other recipients: Helle K. Hansen, helle.k.hansen@dsv.com Photos: Carsten Lundager, Mads Wedderkopp, Martin Ballund. Layout: Jacob Thesander. Translation: ad Astra Translators. Printed by: Formula A/S 24

Birgit W. Nørgaard, 51, was elected to DSV’s board at the company’s general meeting. What pleases you? The best days I remember are when I’ve been out visiting customers or presenting the company or when I’ve prepared a presentation together with staff. Successfully inspiring other people to achieve better results together can really give me a rush. What angers you? “I’m infuriated whenever someone doesn’t keep a promise. Things must be ready at the time agreed. And I’m also angered by dishonesty and deceit.”