Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — FY2005 Earnings Presentation

19 slides from Kuehne & Nagel International's earnings presentation, Mar 13, 2006

  1. Slide 1: Result 2005 Analyst Conference

    THE GLOBAL LOGISTICS NETWORK 0 Result 2005 Unbranded Title Slide Analyst Conference Klaus Herms Chief Executive Officer The background to this slide is Gerard transparent to allow van any Kesteren picture to be inserted Chief in theFinancial Officer semi-circular area Monday, March 13, 2006 1

  2. Slide 2: Agenda

    Agenda Welcome and Highlights 2005 Gerard van Kesteren Operating Review 2005 Klaus Herms Financial Review 2005 Gerard van Kesteren Outlook 2006 Klaus Herms 2 Income Statement 2005 CHF million 2005 2004 2003 % change Turnover 14'049 11'563 9'548 21.5% Gross profit 2'769 2'323 2'064 19.2% EBITA 454 38

  3. Slide 3: Highlights 2005

    Highlights 2005 CHF million 2005 2004 2003 - Gross profit 2'769 2'323 2'064 - EBITA 454 381 316 - Net earnings 315 238 196 - Cash & cash Equivalents 1'125 398 433 - Treasury Shares 229 586 127 - Total 1'354 984 559 Per share - EPS 14.35 10.44 8.44 - Dividend 5.50 4.50 3.50 Equity % Total assets 37.9

  4. Slide 4: Key events Kuehne + Nagel 2005

    Consolidation in the Logistics Industry Kuehne + Nagel ACR DHL Exel Schenker Bax Global DSV Frans Maas PWC Geologistics TNT Logistics for sale Panalpina IPO 6 Key events Kuehne + Nagel 2005 Preparation & completion ACR Acquisition Further elimination joint ventures Continued build up via acquisition

  5. Slide 5: Shareholders structure Kuehne + Nagel

    Shareholders structure Kuehne + Nagel Oct 2005 March 2006 Kuehne Kuehne Holding Holding Free float 55.75% 55.75% 34.27% Free float 41.36% Treasury shares Treasury 9.98% shares 2.89% Since September 2004, free float has almost doubled from 21.2 percent to 41.4 percent 8 Kuehne + Nagel – one of the wo

  6. Slide 6: Financial Performance 2000 - 2005

    Financial Performance 2000 - 2005 Turnover in CHF million GP in CHF million 2'769 14'049 2'323 11'563 2'064 1'911 9'548 1'727 8'805 8'247 8'435 1'453 00 01 02 03 04 05 00 01 02 03 04 05 20 20 20 20 20 20 20 20 20 20 20 20 10 Financial Performance 2000 - 2005 EBITA in CHF million Net earnings in CHF

  7. Slide 7: Financial Performance 2005 - Seafreight

    Financial Performance 2005 GP in CHF million EBITA in CHF million 944 243 866 527 124 400 57 25 5 32 a r ad s r Se Ai tic he a Ai r ad ics er Ro gis Ot Se Ro ist th il & Lo e/ & og /O Ra ac t anc il t L ce ntr ur Ra ac an 12 Co Ins ntr ur Co Ins Performance per Business Field - Seafreight CHF Mio 20

  8. Slide 8: Performance per Business Field - Airfreight, Rail & Road

    Performance per Business Field - Airfreight CHF Mio 2005 2004 Change Revenue 3'011 2'601 15.8% Gross profit 527 476 10.7% EBITA 124 114 8.8% % Revenue 4.1 4.4 % Gross profit 23.5 23.9 - Volume growth in 2005 9.4% realising 654.000 Tons versus market growth of 3.2% - Strong financial performance in E

  9. Slide 9: Contract Logistics and ACR Integration Update

    Performance per Business Field – Contract Logistics CHF Mio 2005 2004 Change Revenue 1'334 1'171 13.9% Gross profit 866 766 13.1% EBITA 57 47 21.3% % Revenue 4.3 4.0 - - Strong organic growth (+13.9%), while maintaining targeted EBITA margin - of just above 4% - Volume growth especially Europe, Cana

  10. Slide 10: Consolidated Financial Statements 2005

    Consolidated Financial Statements 2005 Basis for Consolidation As per International Financial Reporting Standards (IFRS) Income statement and cash flow at average rates during the year Balance sheet at year-end rates Impact new – IRFS 2 (Share base payment) - IRFS 3 (Business combinations) Impairmen

  11. Slide 11: Main Changes in Consolidation Scope; Income Statement 2005

    Main Changes in Consolidation Scope 2005 Share Purchase Häring group, Germany Mönkemöller, Germany WM Cargonet, Germany Ziegler, Denmark Minority Takeover Jordan – now 100% Indonesia – now 95% Nacora Malaysia – now 100% Incorporation Kuehne + Nagel Nigeria Kuehne + Nagel Equatorial Guinea Kuehne + N

  12. Slide 12: Segment Reporting

    Segment Reporting A) By Business Unit Turnover Gross Profit EBITA CHF million 2005 2004 2005 2004 2005 2004 Change - Seafreight 7'503 6'111 944 781 243 183 33.0% - Airfreight 3'011 2'601 527 476 124 114 8.8% - Sea & Air Logistics 10'514 8'713 1'471 1'257 368 297 23.9% - Rail & Road Logistics 2'095 1

  13. Slide 13: Reconciliation 2005 vs. 2004

    Reconciliation 2005 vs. 2004 CHF million 2004 Forex Acq. Growth 2005 Turnover 11'563 179 618 1'689 14'049 Gross profit 2'323 34 175 237 2'769 EBITA 381 5 (23) 91 454 EBIT 318 5 (48) 154 429 EBT 344 5 (48) 145 446 Net earnings 238 4 (40) 113 315 24 Impact Acquisitions 2005 Contract CHF million Sea &

  14. Slide 14: Balance Sheet

    Development Working Capital Kuehne + Nagel Group 2003 – 2005 CHF Mio 2003 2004 2005 A/R 1'025.0 1'276.6 1'713.3 DTE 159.1 211.0 270.7 Subtotal 1'184.1 1'487.6 1'984.0 A/P (498.0) (619.1) (829.9) Accrued Expenses (384.2) (497.8) (626.3) Net Working Capital 301.9 370.7 527.8 Revenue 9'548.0 11'563.1 1

  15. Slide 15: Impact Sale 1.7 Mio Treasury Shares

    Impact Sale 1.7 Mio Treasury Shares Cash Impact CHF Mio - Sale of 1.7 Mio KN Share at 295.5 502.4 - Transaction cost (6.4) - Net Proceed 496.0 PL Impact Zero 28 Investment / Cash Flow CHF million 2005 2004 2003 Investments - Fixed assets 189 107 160 - Intangibles 23 10 15 - Goodwill / other 37 46 3

  16. Slide 16: Corporation Tax and Capital Expenditure

    Corporation Tax CHF million 2005 2004 - Earnings before tax 445.9 344.1 - Tax charge 127.5 103.5 - Effective tax rate 28.6% 30.1% 30 Capital Expenditure CHF million 2005 2004 2003 - Europe 163 85 94 - Americas 14 10 55 - Asia Pacific 7 5 6 - Middle East/Central Asia and Africa 5 8 5 Subtotal fixed a

  17. Slide 17: Proposed Share Split

    Performance Kuehne + Nagel International AG CHF million 2005 2004 2003 - Net Profit 127.3 98.4 81.3 - Dividend proposal 128.8 97.2 81.1 Per Share of CHF 5.-- - Dividend per share in CHF 5.50 4.50 3.50 32 Proposed Share Split Kuehne + Nagel Share price 10/03/06 CHF 400.00 Nominal value CHF 5.00 Nr. o

  18. Slide 18: Share Price Comparison and Corporate Time Table 2006

    Comparison Share price / nominal value Share Price Nominal Value Company Name 03.03.2006 CHF CHF -Credit Suisse 140.80 0.80 - Novartis 70.50 0.50 - Panalpina 113.00 2.00 - Roche 218.50 1.00 - UBS 140.80 0.80 - KNI 403.00 5.00 34 Corporate Time Table 2006: Date 13.03.2006 Press Conference 2005 result

  19. Slide 19: Outlook 2006

    Outlook 2006 Risks: Margin pressure Stronger competition due to consolidation Bird flue / Pandemonia Opportunites: Continuation of globalisation including liberation of markets Continuation of reallocation of production Reduction of number of logistic providers i.e. elimination of small players Kueh

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