consolidated financial statements. None of the standards and interpretations referred to are expected to affect the financial statements of the Parent.
NOTE 4 – REVENUE
(DKKm) 2015 2014
Intra-Group charges 688 635
Total revenue 688 635
NOTE 5 – FEES TO AUDITORS APPOINTED AT THE ANNUAL GENERAL MEETING
(DKKm) 2015 2014
Statutory audit 2 3
Tax and VAT advisory services 1 1 Total fees to auditors appointed
at the Annual General Meeting 3 4
Other fees 2 -
Total other fees 2 -
Total fees 5 4
NOTE 6 – STAFF COSTS
(DKKm.) 2015 2014
Remuneration of the Board of Directors 5 5
Salaries etc. 239 216
Defined contribution pension plans 18 16 Total staff costs 262 237
Average number of full-time employees 310 311
For information on remuneration of the Executive Board and the Board of Directors, please refer to note 5.3 of the consolidated financial statements.
90 DSV ANNUAL REPORT 2015 – PARENT
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NOTE 7 – SHARE OPTION SCHEMES
DSV A/S has issued share options to senior staff and members of the Executive Board of the Company. Please refer to note 5.4 of the consolidated financial statements for a list of current incentive share option schemes and a description of the as-sumptions used for the valuation of the share options granted in 2015 and 2014.
Incentive schemes at 31 December 2015
Average
exercise
Board of Executive Senior price per Exercise period Directors Board staff Total share option Outstanding share options of 2011 scheme 01.04.14 - 01.04.16 - - 5,000 5,000 129.90 Outstanding share options of 2012 scheme 01.04.15 - 31.03.17 - - 24,500 24,500 128.00 Outstanding share options of 2013 scheme 02.04.16 - 29.03.18 32,000 170,000 112,500 314,500 142.00 Outstanding share options of 2014 scheme 31.03.17 - 29.03.19 32,000 170,000 131,500 333,500 166.75 Outstanding share options of 2015 scheme 03.04.18 - 31.03.20 32,000 170,000 159,000 361,000 215.00 Outstanding at 31 December 2015 96,000 510,000 432,500 1,038,500 174.94 Exercise period open at 31 December 2015 29,500 29,500 128.32
Life (years) 3.25 3.25 3.21 3.23
Market value (DKKm) 9.20 48.6 40.9 98.7
Development in outstanding options
Average
exercise
Board of Executive Senior price per Directors Board staff Total share option Outstanding at 1 January 2014 - 510,000 364,105 874,105 131.88
Granted - 170,000 149,500 319,500 166.75
Exercised (170,000) (72,047) (242,047) 127.61 Options waived/expired - (37,500) (37,500) 137.87 Outstanding at 31 December 2014 - 510,000 404,058 914,058 144.96
Granted - 170,000 164,500 334,500 215.00
Transferred 1 128,000 - - 128,000
-Exercised (32,000) (170,000) (122,558) (324,558) 126.68 Options waived/expired - - (13,500) (13,500) 184.06 Outstanding at 31 December 2015 96,000 510,000 432,500 1,038,500 174.94
1) Options of new member of the Board of Directors, previously received in the Director’s former capacity as senior staff member at another DSV company.
The average consideration paid for share options exercised in the financial year was DKK 232.04 per share at the date of exercise.
91 DSV ANNUAL REPORT 2015 – PARENT
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NOTE 8 – SPECIAL ITEMS
(DKKm) 2015 2014
Restructuring costs (10) 22 Restructuring costs relating to
acqusition and disposal of enterprises 15 -Net special items, total costs 5 22
NOTE 9 – FINANCIAL INCOME
(DKKm) 2015 2014
Interest income 14 17
Interest income from Group entities 282 295 Currency translation adjustments, net 35 15 Dividends from subsidiaries 756 1,673 Total financial income 1,087 2,000 Interest income included interest on financial assets meas-ured at amortised cost of DKK 14 million (2014: DKK 17 million).
NOTE 10 – FINANCIAL EXPENSES
(DKKm) 2015 2014
Interest expenses 237 250 Interest expenses for Group entities 17 15 Total financial expenses 254 265 Interest expenses included interest on financial liabilities measured at amortised cost of DKK 237 million (2014:
DKK 250 million).
NOTE 11 – TAX FOR THE YEAR
(DKKm) 2015 2014
The tax for the year is disaggregated as follows:
Tax on profit for the year - 8 Tax on other comprehensive income 9 2 Total tax for the year 9 10 Tax on profit for the year is calculated
as follows:
Current tax (9) 7
Deferred tax 16 -
Tax adjustment relating to previous years (7) 1 Total tax on profit for the year - 8 The tax on profit for the year
breaks down as follows:
Calculated tax on profit for the
year before tax 23.5% 24.5%
Tax effect of:
Non-deductible expenses/
non-taxable income (22.6%) (24.1%) Tax adjustment relating to previous years (0.9%) 0.1%
Effective tax rate 0.0% 0.5%
NOTE 12 – INTANGIBLE ASSETS
Computer software Total amortisation and impairment
at 1 January 593 482
Amortisation and impairment for the year 117 111 Amortisation of assets disposed of (16) -Total amortisation and impairment
at 31 December 694 593 Carrying amount at 31 December 739 591
NOTE 13 – INVESTMENTS IN GROUP ENTITIES DSV A/S owns the following subsidiaries, all of which are included in the consolidated financial statements:
Owner- Owner- Subsidiary ship ship share share share Registered capital 2015 2014 office (DKKm) DSV Road Holding A/S 100% 100% Hedehusene, 100
NOTE 14 – RECEIVABLES FROM GROUP ENTITIES AND OTHER RECEIVABLES
(DKKm) 2015 2014
Receivables from Group entities 4,414 8,412 Fair value of derivative
financial instruments 91 -Other receivables etc. 93 99 Receivables from Group entities and
other receivables at 31 December 4,598 8,511
92 DSV ANNUAL REPORT 2015 – PARENT
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NOTE 15 – DEFERRED TAX Deferred tax as recognised
in the balance sheet:
Deferred tax liabilities 103 88 Deferred tax, net 103 88 Specification of deferred tax:
Intangible assets 110 96
Current assets (3) (1)
Provisions (4) (7)
Deferred tax at 31 December 103 88
NOTE 16 – FINANCIAL LIABILITIES
(DKKm) 2015 2014
Issued bonds 3,225 3,233 Loans and credit facilities 10 2,686 Total financial liabilities 3,235 5,919 Financial liabilities as recognised
in the balance sheet:
Non-current liabilities 3,235 5,399 Current liabilities - 520 Financial liabilities at 31 December 3,235 5,919
Loans and credit facilities
Carrying Fixed/ amount (DKKm) Expiry floating 2015 2014 Bank loans (DKK) 2017 Floating - 741 Bank loans (EUR) 2018-2019 Floating - 770 Bond loans 2020-2022 Fixed/
floating 3,235 3,233 Other 2019 Fixed 10 9 Cash 2016 Floating - 1,166 Loans and credit
facilities at 31 December 3,235 5,919 Bank loans are subject to standard trade covenants. All financial ratio covenants were observed during the year.
The weighted average effective interest rate was 3.2%
(2014: 2.6%).
NOTE 17 – PAYABLES TO GROUP ENTITIES AND OTHER PAYABLES
(DKKm) 2015 2014
Payables to Group entities 6,295 5,090 Fair value of derivative
financial instruments 54 176
Other payables 283 262
Payables to Group entities and other
payables at 31 December 6,632 5,528
NOTE 18 – CONTINGENT LIABILITIES AND SECURITY FOR DEBT Contingent liabilities
DSV A/S and the other Danish Group entities are registered jointly for VAT purposes and are jointly and severally liable for the VAT liabilities.
DSV A/S is assessed jointly for Danish tax purposes with the other domestic Group entities. DSV A/S is the admini- stration company of the joint taxation arrangement and is under an unlimited and joint liability regime for all Danish tax payments and withholding taxes on dividends, interest and royalties from the jointly taxed entities. Corporation tax and withholding tax receivables under the joint taxation arrange-ment amounted to DKK 5 million (2014: corporation tax and withholiding tax receivables of DKK 20 million), which is included in the financial statements of DSV A/S.
Parent company guarantees
DSV A/S has guaranteed for subsidiaries’ outstanding bal-ances with banks and liabilities to leasing companies, suppli-ers and public authorities, etc., in the amount of DKK 4,468 million (2014: DKK 3,473 million).
Moreover, DSV A/S has issued several declarations of intent relating to outstanding balances between subsidiaries and third parties.
NOTE 19 – OPERATING LEASE OBLIGATIONS
(DKKm) 2015 2014
Operating lease obligations relating to operating equipment fall due:
0-1 year 36 38
1-5 years 40 21
Total 76 59
DSV A/S has concluded leases with an average term of 3.5 years (2014: 3.3 years).
Operating lease costs of DKK 33 million relating to other plant and operating equipment were recognised in the income statement for 2015 (2014: DKK 27 million).
93 DSV ANNUAL REPORT 2015 – PARENT
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P NOTE 16
P NOTE 17
P NOTE 18
P NOTE 19
NOTE 20 – DERIVATIVE FINANCIAL INSTRUMENTS Hedging instruments at 31 December 2015
(DKKm) Of which Of which recog- recog- nised in nised in Contrac- income other com- tual Fair state- prehensive Currency value Maturity value ment income Currency 2016-
instruments 19,907 2017 91 91 -Interest rate 2016-
instruments 4,763 2023 (54) (4) (50)
Total 37 87 (50)
Hedging instruments at 31 December 2014
(DKKm) Of which Of which recog- recog- nised in nised in Contrac- income other com- tual Fair state- prehensive Currency value Maturity value ment income Currency 2015-
instruments 8,078 2016 (76) (79) 3 Interest rate 2015-
instruments 6,666 2023 (100) (13) (86)
Total (176) (92) (83)
The weighted average effective interest rate for existing interest rate instruments was 0.7% at the reporting date (2014: 1.5%).
A loss on hedging instruments of DKK 212 million was recognised in the income statement for the financial year of 2015 (2014: a loss of DKK 174 million).
For the same period, hedged risks were recognised in the income statement by a gain of DKK 247 million (2014: a gain of DKK 199 million).
For more information on foreign currency and interest rate risk hedging, please refer to notes 4.4 and 4.5 to the con-solidated financial statements.
NOTE 21 – FINANCIAL RISKS
The liabilities of DSV A/S fall due as listed below:
2015
The analysis of expected maturity is based on contractual cash flows, including estimated interest payments. Amounts have not been discounted, for which reason they cannot necessarily be reconciled to the related items of the balance sheet.
94 DSV ANNUAL REPORT 2015 – PARENT
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P NOTE 21
Financial instruments by category
2015 2014 Carrying Carrying
(DKKm) amount amount
Financial assets:
Derivative financial instruments 91 -
Receivables 4,598 8,511
Other receivables 3,397 692 Cash and cash equivalents 3,995 -Total loans and receivables 11,990 9,203 Financial liabilities:
Interest rate derivatives 54 100 Currency derivatives - 76 Derivative financial instruments 54 176 Issued bonds measured at amortised cost 3,225 3,233 Loans and credit facilities 10 2,686 Payables to Group entities etc. 6,295 5,090 Total financial liabilities measured
at amortised cost 9,530 11,009
The fair value of financial assets and liabilities does not dif-fer significantly from the carrying amount.
The valuation of financial instruments measured at fair value is based on other observable input than prices quoted in active markets (level 2). Interest rate swaps and foreign exchange forward contracts are valued using generally ac-cepted valuation techniques based on relevant observable data.
NOTE 22 – RELATED PARTIES
DSV A/S has no related parties with control.
Related parties of DSV A/S with significant influence comprise members of the Company’s Board of Directors, Executive Board and senior staff as well as family members of those persons. Related parties also comprise compa-nies in which the aforementioned persons have significant interests.
Board of Directors, Executive Board and senior staff No transactions were made in the financial year of 2015 other than ordinary remuneration, as described in notes 5.3 and 5.4 to the consolidated financial statements.
Intra-Group transactions
No transactions were made in 2015 other than as stated in the income statement and notes.
95 DSV ANNUAL REPORT 2015 – PARENT
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DSV A/S Hovedgaden 630 2640 Hedehusene Denmark Tel. +45 43 20 30 40 www.dsv.com CVR No 58 23 35 28 39th financial year Annual Report for the year ended
31 December 2015 Published 10 February 2016 Global Transport and Logistics
Graphic production: MeyerBukdahl
The Annual Report has been prepared in Danish and English.
In case of discrepancies, the Danish version shall apply.