Thank you very much, and welcome everybody to our Q2 earnings call. We will quickly get into it.

If we move to the next slide, I think we have it. Okay, now it's moving.

We can see the agenda here. For the call, it's the same agenda as usual.

I just want to make sure that you also read the forward-looking statements. So that we have the compliance angle covered as well.

If we look at the quarter, I think the integration has progressed as planned. We're still basically on course to complete the integration in 2026.

Harvesting the synergies that we'd set out to do. The quarter has led to some changes in the management on the Road side, in order, what can I say, to bring some experience in that can handle some of these topics that are related to the integration.

We will talk a little bit more about that when we come into the Road division as well. When we come to the EBIT, we delivered DKK 6.3 billion.

I can remember on the Capital Markets Day that many of you had said that we had to pass the DKK 6 billion mark. Therefore, it's also good to see that we managed to do so.

It's the strongest quarterly result that we've had actually since COVID. Definitely seeing that the impact of the Schenker acquisition is starting to filter through.

Of course, we also see here that now we've upgraded our guidance or narrowed it so that we took a little bit of the bottom away. Still, of course, we have a range of DKK 2 billion, not least due to the uncertainty that we see globally.

If we look at the integration itself, we can see that we've now done 60 countries. Many of the countries we've done are the largest.

We only have a few larger countries outstanding. We've reduced more than 8,000 white-collar employees.

Of course, there's still going to be that impact of additional headcount reductions during the remaining part of the year as planned in the business case. The impact is basically that we more or less expect the same as we announced on the Capital Markets Day.

Not much new to mention there. There's a graph on the right side trying to also just visually explain how the impact of the synergies is going to pan out.

The financial highlights, the GP up in this market but also, of course, because of the integration impact. EBIT also up and we see that, of course, we still continue also to invest in integration through the special items cost.

EBIT definitely up. EPS also up, I think we've seen now an improvement in EPS for the first time since we acquired Schenker, that's also very positive.

The cash flow, Michael will talk a little bit more about it, I think there's been a little bit of comments on the cash flow already that it seems unusually high. I think if we do adjust for some of the one-off transactions and they have gone into the bank account and also the high freight rates, I think the cash flow is as it should be and what could be expected.

At least when we look at it from the company side, we are comfortable. On the full-year guidance, I mentioned that, you can see the graphs below.

Switching on to A&S. I think here we also had some debate on the Capital Markets Day and also with investors during the quarter, because we had, as announced, seen the trough in Q1, now we see a conversion ratio on 42%, which was also what was planned for in the business case definitely also the expectation, I guess, in the market as well.

Really glad to see that we managed to deliver on that. The freight rates have increased a bit.

That's, of course, very good for the yields, because also the volatility in the market means that we can sell additional services. Of course, it has then the adverse impact on the volumes, where certain markets are downtrending because of the crisis.

We also mentioned here in the call that we'd seen that the volumes, they are a little bit lower than what we'd anticipated, I guess that's also something that is usual in an integration, you focus more on the integration perhaps a little bit less on the customer side. All in all, our EBIT increased I think the conversion rates are up, very positive about the development on the Air & Sea side.

If we take the GP here, you can also see for Air Freight that we are almost at DKK 5 billion, 13% up. If we look at the yields, 8,700 per ton is also in the high end.

I guess that's also due to many of these issues that you have with the supply chains being disrupted. Our most important area is, of course, these days on Air Freight, the technology vertical that continues to drive volumes.

We have sanitized our portfolio on Air & Sea, we have definitely seen that some perishable volumes there, also some of the volumes that we had in relation to Chinese exports, they have declined or we've reduced those volumes. That, of course, also has an impact on the yield because the yield on those volumes was very low.

Moving on to the Sea Freight. Here we see GP 4% down compared to last year.

We have a situation where we are hovering around the 4,000 per TU in GP, volumes a little bit up compared to last year. This is in particular where we have seen a weaker volume development that we'd planned for.

We are taking initiatives to make sure that we drive volumes then in the right direction going forward on the Ocean Freight. All in all, on the Air & Sea side, I think we are on the right track and the division is going to deliver continued progress also in the coming quarters because we are very advanced on integration also on the Air & Sea side.

Coming then to Road, delivered an EBIT of DKK 999 million. We'd also disclosed to the market that DKK 250 million of these, they are of a one-off nature.

You can say in reality, DKK 750 million. That's then more than last year, but not satisfactory.

What is then the explanation for this? When we've been doing the integration, we integrate both large physical networks, but also large IT networks.

It's been more cumbersome when there's big networks to integrate. For example, in some of the countries mentioned here, could be Germany, France, and the Netherlands.

In the beginning of the year in Germany, we had performance issues on the network and had to compensate quite a bit in the first quarter but also into the second quarter. Actually, our delivery quality in Germany is now up to what it was before DSV and Schenker were integrated.

We have delivery in full on time at the 95% range, which is basically the performance that we've normally seen in a market like this. We've also had some of these issues in some of the other markets.

Of course, we take learning from these integrations that we're doing so that we eliminate some of that risk. There's no really structural change to the aspirations that we have in Road, because it's something that we have to overcome.

When we are on the other side of it, we actually have the same performance as we had before. We've then eliminated one network, both on the IT side, but also on the operational side.

This puts us then in a much stronger position for driving the company forward. We've then added Brian Ejsing's experience to the Road team.

He's been with the company for many years and has significant experiences in these type of integrations. That's really what has helped us to make sure that the delivery performance goes back to normal.

Historically, if we, for example, look at the KPI called delivered in full on time, for example, in the Schenker network, it has hovered between 93% and 95%, very seldom at 95%. Currently, we are at 89%, so there's still a little bit of work to be done, but we expect to be within that range in September month.

That means that then the extra cost that we have on the GP level, when you don't deliver in full on time, you have additional cost because you have to get express trucks or do express deliveries or do some things that basically then compensate so that the customer, they get a good experience. You don't need to do that.

It actually drives quite a bit of cost also on the terminals. That's what you can see in the numbers.

This is a little bit about the Road. There's nothing structurally wrong with our plans.

This is very important for me to emphasize, but there are some transactional issues in relation to the integration that we are dealing with. Of course, I think the highlight of the quarter is definitely CL.

If we sit here and produce DKK 1.5 billion in a quarter, a return on invested capital is moving very fast in the right direction. Last year, it was somewhat lower, and now we can really see that we are moving basically according to the planning that we have on CL.

Growing quite a bit, not least with the tech vertical here, because we have this global footprint that not many of our competitors, they have, where you can serve a customer on CL either in Australia or in Japan or in Mexico or in the U.S. or Europe or wherever it's relevant, the Middle East.

That definitely benefits us quite a lot. With the run-rate that we are having, we're going to produce an outcome on the EBIT level in the DKK 6 billion range for the year.

If you would've asked me a year ago about whether we would be able to do that, I would probably not have been able to confirm that, but really glad to see how it's developed, the CL side. As I said, we expect actually continued progress also in the coming quarters when it comes to CL.

Very positive indeed. On that note, I will actually hand over to Michael, who will then take you through the more detailed numbers, cash flow, et cetera.

Please go ahead, Michael.

Thank you, Jens. Jump to page 11.

Some highlights from the P&L here in the first six months of 2026. Of course, Jens already explained that our EBIT has increased quite a bit to DKK 6.3 billion, which, of course, we're very happy with.

Revenue increased 23%, it's quite a dramatic increase in revenue, which I'll come back to the impact on our net working capital in a second, in this quarter. The conversion rate for the group increased to close to 31%.

This actually improving in all divisions, and Jens also highlighted, especially Air & Sea has seen quite an improvement from last quarter as well. We are definitely on the right track here as well.

Net interest cost is a little bit higher. Obviously, if you compare to last year, now we have the Schenker business in all three months in this quarter, and then we've increased also some of our leases, which is impacting the net interest cost in that line.

Finally, I think you also elaborate a little bit on that, Jens, our earnings per share. We can see that it has increased yet again, from last quarter as well.

This is some of the highlights here on the P&L side. We have, over the years, spoken a lot about the cash flow and, as you also started out by saying, Jens, we will come back to this here.

It is clear that our cash flow is impacted by higher activity in the second quarter here compared to last quarter, but especially, the increase in the rates has impacted our net working capital. It is relatively high these days.

On top of that, we have some property divestment. Also coming back to the DKK 250 million you just mentioned before, Jens, where we have not received the money yet.

The transaction was before month end of June, and now we still need to get the money here within the next month or two when we will receive the last approvals and stuff like that. We will get those money back.

It is a high net working capital, but it is very explainable to the rates and properties as well as activity. All this is temporarily, and we should see, you can say, the cash flow coming in here in this quarter, in Q3.

That is actually, we look forward to that, obviously, and it is under control, so to speak. We talk about our gearing ratio.

It is a little bit down compared to last quarter. We are ending at 2.7x, which was 2.8x the last time.

We have actually paid back debt and reduced net interest-bearing debt with DKK 7 billion compared to when we started. I think that is a lot about the cash flow.

That is great, and we actually still have the target to come back to a normalized between 2%-3% on the annualized basis. Of course, the rates is impacting us right now.

On page number 13, this is the financial targets for 2030. I know we spent a lot of time going through those at the Capital Markets Day a couple of months ago, so it is just some housekeeping to have them in here.

They, of course, remain unchanged also on the Road side. From a strategic point of view, the way that we are heading, there is no changes during the quarter, we still continue on the roadmap that was, you can say, presented at the Capital Markets Day.

Of course, we are still confident that we will achieve the financial targets, and we have plans to do so. That is just to conclude on that one.

We have, like Jens mentioned, we have actually narrowed our range of outlook. We have increased the bottom from DKK 23 billion to DKK 23.5 billion.

Of course, it is due to the fact that we have already now passed six months. Some could argue that the range is still a little bit high, I would though also say that the uncertainty which we look into is also quite high.

For the remaining part of the year, we expect the Middle East situation to be as is, and that's how it is. This is information that we have right now.

We need to work with that as an assumption. For the Air & Sea market, we expect for the remaining part of the year also to grow low to mid-single digits.

Also that the yield will slightly decrease on that one. For the Road, it's also a little bit low single-digit growth in the Road market, and then, of course, like Jens talked about, Brian works on the recovery plans in the areas just mentioned before.

Overall, we increase the bottom of our guidance, and we continue to be confident that we are on track to deliver on the guidance as promised to you guys. Back to you, Jens, for some of the key takeaways.

Yep. I'll just reiterate that the earnings momentum is definitely positive in the company, and we look forward to continue that journey also in the coming quarters.

I think, the Schenker integration, very soon we will not be talking much about that anymore because it will be something that is history. At the end of the day, of course, always pleased to be able to narrow the guidance in the higher end of the range.

With that said, I think we are basically ready for the Q&A session. I'll just remind you can press star and one, but I'm quite sure the operator will do that as well.

Let's move on.

Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their telephone.

You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two.

Questioners on the phone are requested to disable the loudspeaker mode when asking a question. In the interest of time, please limit yourself to one question.

Anyone who has a question may press star and one at this time. Today's first question comes from Alex Irving from Bernstein.

Please go ahead.

Good morning. My question is on Road.

You explained the issue that you're having is you're having to add cost to get to the right on time and in-full delivery quality. How much of that cost did you add in Q2, and how do you expect that to trend into Q3, Q4, into early next year?

In other words, when do you think Road will be back on track, and is there anything else to highlight that's going on in the division beyond delivery quality costs? Thank you.

I would say that if you look at the first half year, we've done some calculations about it. It's definitely more than a quarter of a billion that it's cost us, and it's probably even closer to DKK 500 million that we're talking about, but it's estimates that we're talking about.

Every percentage that you are below, it costs you a significant amount of money, not only on the GP, but actually also on the administrative burden that you carry. This is the reason why that once we then get back to the normal range, right now we improve, what can I say, we call it delivered in full on time with approximately 1 percentage point per week.

Getting back then on track and eliminating that cost here during the third quarter, that is the primary focus that we are having. Basically we should be able to take that, what can I say, burden away from a financial point of view, but definitely also from an operational point of view and a customer service point of view.

I think that's basically what we are looking into.

The next question comes from Cristian Nedelcu from UBS. Please go ahead.

Hi. Thank you very much.

Could I ask you on the Q3 EBIT, could you talk a bit about the building blocks, seasonality held in quarter-on-quarter, incremental synergies, any other moving parts? I think consensus is DKK 6.7 billion.

Do you feel confident that the building blocks can help you reach that? If I could just follow very briefly on the prior question, EBIT margin-wise in Road, how should we think about Q3, Q4?

It sounded that there should be already an improvement in the underlying EBIT margin in Q3. Did I understand that well?

Any more color there. Thank you.

If we take Road, I think there's a big summer period in Q3 that always, what can I say, has a significant impact if you sit on a lot of infrastructure. This goes for July and August, obviously, where you will have that headwind.

September will be a good month normally, when it comes to that. Right now we are improving, and we expect that it will help throughout the quarter, as we're talking about it.

We don't really guide on a quarterly basis. When you look at the company in general, we need to see improvements in, of course, in Air & Sea where we get the impact from the synergies that you also saw.

Now we make more than DKK 1 billion more in Q2 than we made in Q1. We need to turn the table around in Road.

I don't think that we are going to see the full impact of that in Q3, but definitely into Q4. Then on CL, I think we will continue, what can I say, the slow grinding way forward.

I think that's what I can say, because very soon you'll ask for monthly budgets as well, and we guide on a yearly basis. I hope this answers your question.

Thank you.

The next question comes from James Hollins from BNP Paribas. Please go ahead.

Yeah, thanks very much. Michael, why don't you come back on the free cash flow.

Is there anything sort of underlying that you're concerned about in free cash flow performance? Obviously, you've made a very clear statement that this effectively normalizes from Q3 onwards.

Is that fair to say you will see a normalization? Very obviously, does this impact your view on the potential speed, whether it's share buybacks can come back in?

Thank you.

Yeah. I, of course, expect that the cash flow will come, because it is temporary, and there's no underlying challenges in there.

We, of course, expect that will come back. In terms of potential share buybacks, like I have said also previous quarter, we do estimate, you can say every quarter, how is the cash flow looking for this quarter that just passed?

How will it look next quarter? How is the gearing ratio looking?

Based on that, we assess whether we will be able to start a share buyback. That methodology will, of course, continue, but as you can see for this quarter, where we have an interim, you can say tie up capital in our network capital.

We actually want to get that in the bank here in the next quarter, and then we will assess whether we are in a position to consider it again.

Just want to reiterate that there's nothing changed in our policy.

No, no.

Q3, would that therefore indicate likely share buybacks announced at Q3?

No. I would not say that is likely to Q3.

We assess it every quarter, and as Jens rightfully mentioned, we also have our capital allocation policy that which we stick true to. We also have our rating agencies.

It's a mixed, you can say, development that we need to see before we start the share buyback.

Okay. Thank you.

The next question comes from Patrick Creuset from Goldman Sachs. Please go ahead.

Hi, Jens, Michael. Good to see the clear improvements you're making there in Air &Sea and CL, but I think you have two, as you say, temporary issues in terms of working capital and then the Road EBIT in Q2.

I think it'd be helpful if, similar to Q1 where you spoke about Air & Sea Q2 performance, about 40% conversion, you've delivered 42%. If you could be perhaps a little bit clearer on the Q3 and Q4 path on those two items to confirm they're temporary.

Road underlying EBIT performance DKK 750 million in Q2. It sounds like Q3 would be in a sort of similar range, then you're suggesting DKK 250 million-DKK 500 million sort of one-off costs flowing back up in Q4.

Is that kind of the right way to look at Road? Then working capital, DKK 2 billion negative flow in H1 overall, we understand the billing blocks, do you expect to recoup most in H2?

How much in Q3? Yeah.

Any sort of rough directional guides will be helpful. Thank you.

That's on net working capital, you can take

Yeah, you can take

on the Air & Sea.

Thank you for the question. The net working capital, we do expect that that will, you can say the cash flow will come in here.

As said, it is temporary. Remember also, like we also have written, DKK 1.8 billion is due to some of the property divestment of the legacy Schenker properties.

The transactions are closed, and we will have the money here within this month or next month. I'm quite certain that this is a temporary issue.

In terms of the projection of net working capital, of course, it depends on the rate development and also if we start getting more volume and activity in. Overall, of course, we do expect that if it continues as is, of course, we should have NWC brought down to in the range of between 2% and 3% over the next couple of quarters.

I think the seasonality on working capital is unfortunately so that it's always the best position at the end. There will always be a headwind when it comes to the year.

As Michael says, I think the property money they have more or less gone into the bank account. There might be one outstanding.

We are 100% certain on that.

We actually did receive some money last week.

The other one, as we said, nothing structural. When it comes to Road, I think it's probably a fair way that you look at it, that the next quarter is going to be also because of the seasonality, weaker.

The fourth quarter we're going to get back on track. As I said, when we've done the integrations in the markets, then we come back to the normal quality levels that we have seen.

We can also see that we then can, what can I say, achieve the productivity that we require in order to deliver the outcomes that we have planned for. Sometimes when you do an integration, things require that we take some extra steps.

This is not unusual, as long as it's of a transactional nature and not of a structural nature, I think we're going to solve it.

Thanks.

The next question comes from Jacob Lacks from Wolfe Research. Please go ahead.

Hey, thanks for your time. Your guidance incorporates lower Air & Sea yields in the back half relative to the second quarter.

Why is that just given everything going on in the ocean market right now? Do you think that's true for both Q3 and Q4?

Do you think you can get the positive currency volume growth in the second half as you lap the Schenker acquisition? Thanks.

Yeah. No rolling forecast.

This is what we're planning for, that we get growth back in the latter part of the year. Of course, if you look at the yields, there's normal seasonality where they do taper off at the end of the year.

Depending on the geopolitical environment, this can of course fluctuate a little bit, and I think we have as little insight into this as you may have or not, I'm not sure. I at least expected that there would be a resolution in the Middle East, and now it seems as if it's going a little bit in the wrong direction, if you're looking for a resolution.

Let's see what happens. I think that's the best thing we can say right now.

Of course, we react to it, depending on what happens in the market.

Great. Thank you.

The next question comes from Muneeba Kayani from Bank of America. Please go ahead.

Good morning. Thank you for taking my questions.

I just wanted to go back to understand Road a little bit better. Did you have any one-offs in Road in the first quarter?

Just want to understand why these operational issues came up in the second quarter, and there was nothing in the first quarter. That's one thing.

Secondly, just related on Road, should we expect any more one-offs related to property transactions in the second half? Because my understanding is that you still have those ongoing in terms of the property divestment.

Thank you.

If you look at Q1, we started many of the integrations in Q1, so they didn't really necessarily have that much of an impact. It really filtered through into Q2.

Of course, when you produce your work in progress, sometimes you do it a little bit based on estimates as well. When you see the real outcome, there might have been some accruals.

Were they 100% accurate at the quarter? Probably not, but this is not unusual.

That can, say, be DKK 50 million or DKK 100 million from one quarter to another. As I said, it's probably driven a cost between DKK 250 million and DKK 500 million during the first half year.

It is something. It's meaningful.

When it comes to the divestment of facilities, we continue to follow our asset-light policy that we've had for many years. When we divest facilities, we will then also, if there has a financial impact, disclose it.

We don't plan for this in our guidance, because this is of a very transactional nature, and therefore, we have no certainty on the outcomes before that you've had an auction on the different facilities and what are people willing to pay. Yep.

The next question comes from Alexia Dogani from JPMorgan. Please go ahead.

Good morning. Just a very quick follow-up on the DKK 250 million-DKK 500 million impact to H1 performance in Road based on these issues.

Is this all cost or is there some lost revenue in there? If you can just clarify that.

My real question is, obviously, we saw you not that long ago, I would imagine these issues must have been brewing in the background that you were trying to fix. Clearly, it's not possible to fix them very quickly.

It's a big integration. It's quite complicated.

I guess, what else is on your radar at the moment when you look at performance week-on-week on this integration? Are there any other areas that you are actively problem-solving that we should be aware of?

Ultimately, I think everyone understands it is a complex integration, the largest you've done. There's a lot of systems, there's a lot of networks.

Being a little bit more, let's say, understanding of the issues that you're facing on the ground, I think would help us all when we look at our models and our expectations to be able to basically measure you with realistic kind of progress.

If we look at, what can I say? The costs less revenue, we could potentially probably have had more growth.

Normally, we do see a lot of revenue attrition when you do M&A, so that's really hard to judge. The cost side, of course, we can see that the GP, when we produce, is slower.

I think that's probably where the main part of the number stems from. When we take issues in certain areas, I think we are quite transparent about, what can I say?

What goes on in the company. I would like to think so.

I would say that the integration, when it comes to the Air & Sea side is progressing as it should. I don't really see any big areas there.

Of course, we need to deliver volume. This is the main task when it comes to Air & Sea.

I think this is clear for everybody. I think on the CL side, I think the numbers, at least when we look at them, they speak for themselves.

Also, it's basically to be able to scale and drive the company forward. We have these integrations, it is in relation to the DSV volumes that are moved into the Schenker systems in Europe.

This is what we're talking about on the Road side. That was really kicked off in the beginning of the year, and I believe that we saw each other in the beginning of May, where we had the first indications of that.

Now two months or more have lapsed, or actually two months and a little bit more. Yes, there's been some new information.

I don't think it changes the case structurally. This is very important for me to emphasize.

We've also seen that some of the areas where we did have issues, they are back on track. All in all, we don't really necessarily, sometimes you would have a reaction, what can I say, to negative information like this, but it seems rather, what can I say, significant, the reaction.

The market does what the market does, and we will then, of course, make sure that we solve these problems and deliver the results that we have set out to do.

I think it's also fair to say, now we see things, we address them. As we also write in the announcement, it's a couple of large countries, I think we have been more or less through all the different scenarios.

It can, of course, be that there are some few remaining parts left, overall, I think the combinations of systems and countries and stuff like that, we have been through a lot of the scenarios and taken some lessons learned there.

Thank you.

The next question comes from Cedar Ekblom from Morgan Stanley. Please go ahead.

Thanks very much. Hi, guys.

I've got a question on your staff cost numbers in terms of number of employees. I can't really square what's going on at the divisional level with what's going on at a group level.

We've got staff costs down across the board, which is good, since the Schenker integration, but the reduction at the group level is far more modest than if we look at the divisions. The question is why are the heads at the head office level not actually moving in the same way as the divisions?

Actually, on a sequential basis, I think you actually might have added a few heads at the head office. A little bit of color, please, on sort of the difference between the operators at the local business levels relative to maybe your more central functions.

That would be helpful. Thanks.

Yes. Thank you.

It's a good question, and you're absolutely right. In line with the integration, we are also consolidating more and more tasks and workflow in some of the group entities.

It's very well spotted. That is why it develops as it does for the group part.

Okay. A bit of color on how that normalizes or, because it would be quite disappointing to see all these heads come out at the regional and business levels and then just see the total number shifting around to head office functions.

A bit of color on the catch-up or the alignment there, that would be helpful.

It will be done in line with the country rollout. You can say it's around 2,000 FTEs that we have added.

I think it's fair to say what we've done is, just so that you don't think it's administrative people.

No.

We've created, what can I say, a consolidation of certain activities. Let's say custom clearance could be, for example, some of the parcel express activities and some other activities under a label that we call Global Products.

We don't disclose that to you with the P&L right now. We may do that at a later date, but it's operational activities where, let's say you do customs formalities.

Instead of having it both in Road and in Air & Sea and in Contract Logistics in the same country, we're actually carving that out and leaving that into the fourth division. It's also in line with the strategy that we explained to you on the Capital Markets Day.

By consolidating this, we'll be able to use the same tools and also outsource some of this work to low-cost areas and drive, for example, the synergy case that we need to do when we deliver on the, basically, improved financials on the custom clearance side. This is actually the same we do for parcels and some of the other services that we're producing.

This is the reason why that you actually get a significant higher headcount in the headquarter. I'm quite sure if you speak to the IR team, they will be able to tell you what is the development in the classic administrative part and what is the development in the fourth division part.

I think that should give you, what can I say, the information that you need for your, basically, forecasting in your spreadsheet. Also show to you that we don't creating administrative jobs in the headquarter big time, because that's not the case.

It is centralization of business tasks.

Yeah, can I just ask a follow-up? I understand that fully and aligned with the strategy.

When it comes to that fourth division, where are we in the journey of reskilling that division, increasing headcount? Does that need to continue from here, or have we got the right resource in place now to leverage your central functions?

Is there a percentage of that headcount in that fourth division that is sort of developers linked to your efforts on productivity and AI rollout? Because obviously those people probably cost quite a lot, very highly skilled people.

I would say that they sit in our normal IT budget and they are not singled out. We have a team, what can I say, that runs AI and many of these technologies that we need to do.

It's actually more on the change management side that you need to resource, and we will then country by country, roll it out. There'll probably be more people moving out of the divisions as we progress on this journey.

I think we have still some ground to cover when it comes to that. I think, you'll be able to get the details basically from There will then be minus in division and then plus in this Global Products category, the one we are talking about.

Of course, we drive to productivity. We already see that this of course happens and we have, what can I say, some aspirations on that journey.

We have to deliver DKK 6 billion to you and the consolidation of, for example, the customs area will probably deliver 12%-14% of that number. It is something of productivity that we have to increase in this area.

Yep.

Understood. Thanks so much.

The next question comes from Lars Heindorff from Nordea. Please go ahead.

Thank you for taking my question. It's a follow-up on some of your earlier comments.

Jens, you said that you've taken initiatives to increase the volumes in sea freight in the coming quarters. Can you just elaborate on, I mean, what specific initiatives have you taken?

As part of that question, Q3 will be the first quarter when we actually can start to look year-on-year volumes instead of talking quarter-on-quarter. Do you expect when we get to Q3 that you'll be able to show positive year-on-year growth rates and volumes in Air & Sea?

Thank you.

Yes, I also said, the rolling forecast shows that during Q2, we are going to get out of the or Q3, the second half of the year, we're going to get out of the trough, so that we then come back to taking or growing the business again. The initiatives that we are taking is, what we are doing is every country or every area has a book of business.

It's assigned to people, and we have target setting on it, and then we drive, what can I say? Sales according to this target setting in relation to the customers.

I think that's basically what we try to do if we take it all overall. Of course, certain customers you need to drive, what can I say?

With vertical expertise on top of that. Other customers, what can I say?

It is more like general cargo and the customer segmentation, you sell to the customers. Let's say you have very small customers, perhaps more digital interface, where the larger the company gets that you interact with, the more specific it is and the more planning and work it requires.

I would say that is all ongoing and we have to prove now that we can capitalize on the capacity that we have and deliver growth.

The next question comes from Harishankar Ramamoorthy from Deutsche Bank. Please go ahead.

Yeah. Hi, good morning.

Thanks for taking my question. Maybe I can revisit one of the earlier ones on Road.

When you spoke about some potential impacts to revenues, would it be possible for you to give us a sense of underlying like-for-like growth or, say, the churn in percentage terms? Maybe a quick one on the minority interest.

I find that that's gone up quite a bit. Any color on what's driving that up?

Thank you.

I think if we look at Road, I'm not 100% certain. It's always difficult to say exactly what is the market and what are we.

We are probably a little bit behind the market, once the quality issues have been resolved, the network should be stronger than before, we should then be able, what can I say? To come back to normal growth rates.

If I was sitting with your spreadsheet, I would probably take a couple of percentage points off. We've anyway said that on the integration that we are going to lose a bit of GP, we are definitely within those parameters.

When it comes to the minority interest, I think Michael can say a little bit about that. There's a good explanation, I think.

Yes. It's right that it's quite high for the quarter.

As always, when we go into these integrations, not as always, but in many cases, the acquired business have a lot of JV interests stakes in different parts of the world. When we go in, we want to clean that up so we get in control in full, enhancing our network.

Cleaning that up means sometimes that we have to pay out the minority share to the different JV holders. We have been working in exotic countries to clean that up.

That should be a, you can say predominantly a one-off this quarter we have had in Turkey, Japan, and Bahrain. We have a lot of JVs that we clean up, but the biggest part has been cleaned up.

One-off payment of dividends as part of acquiring the minority entity, and then basically buying the remaining of the shares in the unit. It can be several years of profit that has been accumulated down there.

Yeah.

There's no correlation with the line minority interest. Actually going forward, hopefully, we own now a bigger part of the company, as Michael says.

Of course, the part where we still have minority, of course, it's a few Contract Logistics operations in Turkey and Japan, I believe it is. The rest we are in 100% control of now.

Well spotted, I would say.

This is how we have to treat it from an accounting point of view. It is part of the, you can say, profit distribution.

Okay. Sorry, just a follow-up.

Should we expect any material cash outflows towards the acquisition of these minority interests going forward?

No. It is not significant.

It's always, you can say, many smaller ones typically. It's not a big outflow.

Sure. Thanks.

The next question comes from Marco Limite from Barclays. Please go ahead.

Hi. Good morning.

Thanks for taking my question. I've got a question around the DKK 250 million capital gain in Q2.

Why are we seeing a capital gain in Q2, why we didn't see any capital gain in Q4 and Q1? I guess related to that, where are we in percentage terms versus the EUR 2 billion asset disposal that you have guided for?

Are we just the start, midway? How many transactions we should expect going forward?

I'm aware that you said that we should not expect any, or the guidance does not reflect any capital gain. Beyond the guidance, are there more capital gains that we should expect going forward?

Thank you.

I think we've already explained on the capital gains that we're not expecting what we are planning for gains. There's an opening balance adjustment.

Let's say if you'd had some gains, in the early part of the year, you would have had to adjust that in the opening balance if they related to a Schenker facility. That's really how the accounting rules they work.

We've then divested some here in the second quarter, and I think Michael can tell a little bit more about the volume and where we are at on that. Perhaps you can say something on that.

Yes. You can see that in the cash flow statement, you can see that we have sale of property, plant and equipment is roughly DKK 4.5 billion for the first six months.

We are grinding our way through it.

If DKK 2 billion in DKK 15 billion-

Yeah

we have done 1/3.

Yeah.

We will continue to divest those facilities.

Thank you. Just to be clear, is the accounting treatment different now in Q2 versus what it was in Q1, for instance?

Yeah, you can say after 12 months, you don't adjust, what can I say, the gains and the opening balance anymore. When you do the purchase accounting, you have 12 months where you go and make an estimate, what's the value of the asset?

If there is a transaction and the value crystallizes and it's different, then you have to adjust that in the opening balance. Once you pass, what can I say, that point, there can be many things that leads to an adjustment on a facility because you would use certain assumptions when you make the valuation for the facility.

If some of these assumptions they change or the market, for example, for investment in property changes afterwards, then of course the outcome is probably going to be different from your initial assessment.

Okay, thank you. Just to close off the topic, did you have any capital gains trade or sale-leaseback gains in Contract Logistics in Q2 or in the first half?

Thank you.

No.

No.

Yep.

The next question comes from Ulrik Bak from Danske Bank. Please go ahead.

Yes, hello, Jens and Michael, thank you for taking my question. Just on the cost synergies, you write that the impact increased in DKK 300 million in Q2, looking at group fixed costs, they only declined around DKK 56 million Q-on-Q.

I acknowledge that in Air & Sea, fixed costs decreased around DKK 300 million. At the same time, the group costs increased by more than DKK 200 million, which is probably what you alluded to earlier on this Q&A.

Where do we really see those DKK 300 million in cost synergies, also considering that Q1 cost level was elevated? Thank you.

I think if you look at it, thank you for the question. If you look at it, if you look at our Contract Logistics division, you'll actually see that there is an increase quarter-on-quarter in the cost there.

If you track that to the development of the business, I think it's fair that it's been worthwhile investing in some white-collar workers if you look at the conversion ratio and the EBIT margin that they have. This is the main reason, obviously.

I think this is what you need in your explanation, then it will all stack up.

Yeah.

The next question comes from Arthur Truslove from Citi. Please go ahead.

Thank you very much for taking my question. The area I wanted to focus on was just the Sea side.

Clearly, volume progression Q-on-Q was a little bit soft in Q2. I guess, what's the sort of opportunity to grow volumes going forward?

What are you expecting in Q3? Are you expecting more normal seasonality?

Are you expecting some catch-up? When should we start to see you grow back in line with the market again?

Then I guess, actually, just finally on that, when would we expect to see you go above the level seen, in the previous year? Then also on Sea on yield as well, the CCFI index is up very significantly in terms of what you're going to be recognizing Q3 versus Q2.

I just wondered why the gross profit per unit in Sea should not be up meaningfully. Thank you.

I think that was quite a few questions. Let's try to see if we can answer them all.

If we look at the ocean freight, we already explained what we are doing on the customer-facing side. The network capacity we have on LCL and many of the products that we have on ocean freight, they are definitely market-leading and very strong.

That should help us to continue that development on ocean freight. If we look at the ocean freight, we have also invested quite a bit in the sales force, not least in Asia.

That should hopefully also drive some outcome in the coming quarters. When it comes to the yield side, we are now at 4,000 per TU, so it is somewhat higher than we would normally plan for.

You are right, there is a chance that we may even get a little bit more expansion on the yield into the next quarter. We will have to wait and see.

When it comes to we have now to have reached a trough, and we have to see that, basically, we catch up with the market, and start to deliver performance that is satisfactory. This has to happen here during the second half of the year.

Hopefully we can also start to see some of this also when we announce the next quarter. This is at least what we have in our rolling forecast.

The next question comes from Kristian Godiksen from SEB. Please go ahead.

Yes. Hello, gentlemen.

Just a quick question on Road from my side. I was just wondering, what are the plans with Brian Ejsing in relation to the roles of both having a role as COO and also COO of Road?

Thank you.

I think the plans are now that Brian stabilizes the situation. Once that is done, we will then start to discuss how, what can I say, to drive the succession in Road as we normally do.

We will take our time. Brian is doing a good job and, since CL also reports to him at the end of the day, but that's doing fairly well, he can spend his resources on the Road side, which is actually also doing a great job there.

Just to be clear, the intention is once you progress more on Road, then Brian will step back to focus solely on being a COO, and then you will have a succession in a new COO of Road. You'll have two separate C-level.

We will probably get there, but let's see how it all pans out now. Also how the workloads, what can I say, they spread out.

As I said right now, Brian, he can double hat and do both jobs. He does a very excellent job on that, but the idea is, of course, that the structure that we have, that we get a solution in the little bit longer term.

Yep.

Okay. Very clear.

Thanks a lot.

Ladies and gentlemen, this was the last question for today. I would now like to turn the conference back over to Jens Lund for any closing remarks.

Well, thank you very much for your interest and your time today. I think we've had a lot of good questions, not least when it comes to Road, but certainly also to the cash flow situation.

I hope that at least you feel that we have confidence in our ability also to deliver the outcomes that we need, both for the year but also in the coming quarter. We look forward to the conversations that we're going to have with you bilaterally now in some of our investor meetings.

We look forward to speaking to you again at the end of next quarter. Thank you very much for your interest, and have a continued good summer.

Thank you.