Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — FY2020 Earnings Presentation

35 slides from Kuehne & Nagel International's earnings presentation, Mar 3, 2021

  1. Slide 1: Analyst conference Full-year 2020 results

    Analyst conference Full-year 2020 results Kuehne + Nagel International AG Schindellegi, Switzerland 3 March 2021 (CET 14.00)

  2. Slide 2: Overview full-year results 2020

    01 Overview full-year results 2020 3 March 2021 | © Kuehne+Nagel | Analyst presentation 2

  3. Slide 3: Highlights full-year results 2020

    Highlights full-year results 2020 Net turnover Gross profit 20,382 CHF million 2019: 21,094 7,475 CHF million 2019: 7,981 3.4% decrease including negative FX 6.3% decrease on the previous year impact of 6.0% on the previous year Free cash flow EPS 1,453 CHF million 2019: 1,138 6.59 CHF 2019: 6.67 1.

  4. Slide 4: Kuehne+Nagel with strong performance

    Kuehne+Nagel with strong performance  EBIT of CHF 423  EBIT of CHF 62 million million  Increasing share of  Domestic transport SME customers in volumes back to Q4 2020 pre-crisis levels  Low volumes in North America Sea Market Air in times Road Contract Group Logistics of Covid-19 Logistics Log

  5. Slide 5: Business unit update

    02 Business unit update 3 March 2021 | © Kuehne+Nagel | Analyst presentation 5

  6. Slide 6: Sea and Air Logistics volumes

    Sea and Air Logistics volumes TEUs '000 Tons '000 1,279 1,246 1,190 1,214 1,171 1,146 1,140 1,100 1,075 441 424 409 404 406 392 372 354 315 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2020 2020 2020 2020  Sea Logistics volumes full-year 2020 6.8% below prior year; Q4 2020 down by 4.2%  Air

  7. Slide 7: Sea Logistics

    Sea Logistics Continuation of SME volume recovery Increase of imports in Europe and North America from Asia 3 March 2021 | © Kuehne+Nagel | Analyst presentation 7

  8. Slide 8: Sea Logistics

    Sea Logistics GP/TEU in CHF Exp/TEU in CHF EBIT/TEU in CHF 333 321 320 321 313 306 308 311 299 (247) (232) (236) (225) (222) (219) (217) (211) (198) 113 104 97 99 95 81 83 73 80 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2020 2020 2020 2020  Gross profit full-year 2020 at CHF 1,417 million

  9. Slide 9: Air Logistics

    Air Logistics Strong yield performance in Q4 2020 Positive one-off impact of net CHF 63 million in Q3 2020 3 March 2021 | © Kuehne+Nagel | Analyst presentation 9

  10. Slide 10: Air Logistics

    Air Logistics* GP/100 kg in CHF Exp/100 kg in CHF EBIT/100 kg in CHF 106 95 89 80 84 81 83 75 70 (71) (60) (61) (64) (59) (56) (59) (51) (55) 40 35 30* 19 20 23 22 19* 19 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2020 2020 2020 2020 * adjusted for write-off of intangibles in Q4 2019 of CHF

  11. Slide 11: Road Logistics

    Road Logistics Demand of domestic transports in Europe returned to pre-crisis levels North America volumes lagged behind except for pharma and e-commerce 3 March 2021 | © Kuehne+Nagel | Analyst presentation 11

  12. Slide 12: Road Logistics

    Road Logistics EBIT in CHF m EBIT/Net TO margin in % 24 24 21 19 17 16 17 2.7 2.9 2.3 12 2.1 2.0 2.0 9 1.8 1.5 1.2 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2020 2020 2020 2020  Net turnover full-year 2020 at CHF 3,222 million, 10.2% below prior year, Q4 2020 CHF 842 million, 6.9% below p

  13. Slide 13: Contract Logistics

    Contract Logistics Market share gains in pharma & healthcare sector and in e-commerce fulfilment Net negative one-off impact of CHF 42 million in 2020 (CHF 46 million in Q4 2020) 3 March 2021 | © Kuehne+Nagel | Analyst presentation 13

  14. Slide 14: Contract Logistics

    Contract Logistics (excluding one-off impacts) 7.5 70 7.0 EBIT in CHF m EBIT/Net TO margin in % 6.5 60 6.0 49 5.5 50 5.0 43 4.5 Axis Title 40 34 4.0 29 28 28 3.5 30 25 26 4.0 3.0 20 3.1 17 2.5 2.5 2.4 2.0 2.1 2.2 1.5 10 1.8 2.0 1.4 1.0 - 0.5 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2020 2

  15. Slide 15: Key financial figures full-year 2020

    03 Key financial figures full-year 2020 3 March 2021 | © Kuehne+Nagel | Analyst presentation 15

  16. Slide 16: Income statement

    Income statement 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 Variance YTD Variance in % CHF million thereof Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD 2020/2019 Q1 Q2 Q3 Q4 2020/2019 Forex 1 Net turnover 5,237 5,363 5,238 5,256 21,094 4,912 4,896 5,031 5,543 20,382 (712) (325) (467) (207) 287 (3.4%) (6.0

  17. Slide 17: Income statement - EBIT reconciliation full-year 2020

    Income statement - EBIT reconciliation full-year 2020 CHF million 10.4% = CHF 105m 0.8% = CHF 9m 64 1,113 1,061 (79) 1,070 (20) 1,008 (63) 62 17 9 EBIT 2019 Net profit on Write off of Restruct. EBIT 2019 EBIT 2020 Net profit on Quick net Sale of CL GB FX impact 2020 EBIT 2020 as reported sale of int

  18. Slide 18: Balance sheet

    Balance sheet December 31, December 31, December 31, December 31, CHF million 2019 2020 2019 2020 Assets Equity and Liabilities Equity attributable to the equity holders 2,316 2,407 Property, plant and equipment 1,089 797 of the parent company Right-of-use assets 1,899 1,500 Non-controlling interest

  19. Slide 19: Cash / free cash flow

    Cash / free cash flow CHF million YTD YTD Variance In CHF million 1,453 2019 2020 Cash and cash equivalents January 1, net 488 904 416 FCF 2018 FCF 2019 Operational cash flow 1,746 1,904 1 158 FCF 2020 1,138 Changes in working capital 226 120 1 (106) 811 Income taxes paid (252) (306) (55) Cash flow

  20. Slide 20: Working capital

    Working capital Dec 31, Dec 31, Better/(worse) CHF million 2019 2020 2020 vs. 2019 Trade receivables/contract assets/work in progress 3,900 3,835 65 Trade payables/contract liabilities/accrued trade expenses (3,080) (3,262) 182 Net working capital 820 573 247 KPIs: Working capital intensity 3.3% 2.3

  21. Slide 21: Return on capital employed (ROCE)

    Return on capital employed (ROCE) ROCE ROCE excl. Acq./Assets held for sale/Quick settlement 85%  Covid-19 effect: 80% Sudden decrease of profitability 75% 75% on similar asset base leads to lower ROCE 70% 66% 67% 66% 71% 65% 65% 61% 62%  Acquisition effect: 60% 60% 58% 62% Acquisition impact of o

  22. Slide 22: Financial targets

    Financial targets Volume Volume Net turnover Net turnover Group growth growth growth1 growth1 FY Targets 2020 2022 Conversion rate 14.3% 16% KN KN KN KN (7)% (13)% (6)% 2020 (5)% 2020 2020 2020 ROCE (excl. acq.) 75% 70% Effective tax rate 25.5% 24-26% Market Market Market Market (5)% (11)% (8)% 2020

  23. Slide 23: eTouch in context

    eTouch in context  Technology integral to realising full scope of efficiency gains Past workflow processes  Further standardisation of Branch eTouch workflow and sequencing of tasks Sequence 2 1+4 3 …  Centralisation of some Branch customer and carrier facing Sequence 1+3 4 2+5 …. tasks Shared se

  24. Slide 24: eTouch now one of several factors supporting profit margins

    eTouch now one of several factors supporting profit margins  eTouch accounted for about 100bps of the FY20 Air Logistics conversion ratio (CR)  Contribution significantly greater year-on-year; accelerating impact in FY21-22  Other CR support factors: portfolio mix, market dynamics, AirLog (tailwi

  25. Slide 25: Shareholder return

    Shareholder return Dividend proposal 4.50 in CHF per share Payout ratio of 68% 2016 2017 2018 2019 2020 Share price in CHF on 31.12. 134.60 172.50 126.35 163.20 200.80 Market capitalisation in CHF million on 31.12. 16,152 20,700 15,162 19,584 24,096 Dividend per share paid in CHF 1 5.50 5.75 6.00 4.

  26. Slide 26: Post Balance Sheet event – executing on Asia M&A strategy

    Post Balance Sheet event – executing on Asia M&A strategy  On February 22, 2021, acquisition of 87.3% of Apex Logistics Corporation  One of the leading airfreight forwarders in Asia with seafreight competence  Focus on Trans-Pacific trades (supported by US presence) and intra-Asia markets  Reput

  27. Slide 27: Sustainability – aiming for CO2 neutrality in 2030

    Sustainability – aiming for CO2 neutrality in 2030 Transport & logistics is responsible for 7% of global emissions. We take responsibility to counteract climate change. Kuehne+Nagel launched the Net Zero Carbon programme:  2020 achievement: CO2 neutral for all direct, own emissions (Scope 1 and 2 G

  28. Slide 28: Kuehne+Nagel Group – key investment highlights

    Building upon 130 years of success Kuehne+Nagel Group – key investment highlights Who we are What we do How we work How we grow How we think Global leader in Specialising in Advantage in strong Focus on profitable, Long-term vision sustainable, high tailored, asset-light in-house information organic

  29. Slide 29: Appendix

    © 2021 Kuehne+Nagel All rights reserved

  30. Slide 30: Upcoming events

    Upcoming events 07. – 26.04.2021 Closed period 26.04.2021 Three-months 2021 results 04.05.2021 Annual General Meeting 07. – 20.07.2021 Closed period 20.07.2021 Half-year 2021 results 06. – 20.10.2021 Closed period 20.10.2021 Nine-months 2021 results 03.01. – 02.03.2022 Closed period 02.03.2022 Full-

  31. Slide 31: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 1. Sea Logistics A) Income Statement Turnover 2,235 2,095 2,251 2,392 8,973 2,437 2,453 2,480 2,381 9,751 (8.3) (14.6) (9.2) +0.5 (8.0) (202) (358)

  32. Slide 32: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 3. Road Logistics A) Income Statement Turnover 975 829 899 930 3,633 1,037 1,040 996 1,029 4,102 (6.0) (20.3) (9.7) (9.6) (11.4) (62) (211) (97) (99

  33. Slide 33: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 5. Kuehne+Nagel Group A) Income Statement Turnover 5,860 5,713 5,875 6,364 23,812 6,323 6,404 6,271 6,297 25,295 (7.3) (10.8) (6.3) +1.1 (5.9) (463)

  34. Slide 34: Contact

    Contact Markus Blanka-Graff CFO markus.blanka@kuehne-nagel.com Tel: +41 (0)44 7869 644 Christopher Combé Head of Investor Relations christopher.combe@kuehne-nagel.com Tel: +41 (0)44 7869 693 Andrea Kobi Investor Relations andrea.kobi@kuehne-nagel.com Tel: +41 (0)44 7869 561 3 March 2021 | © Kuehne+N

  35. Slide 35: Disclaimer

    Disclaimer Investing in the shares of Kuehne + Nagel International AG involves risks. Prospective investors are strongly requested to consult their investment advisors and tax advisors prior to investing in shares of Kuehne + Nagel International AG. This document contains forward-looking statements

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