Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — H1 2018 Earnings Presentation

28 slides from Kuehne & Nagel International's earnings presentation, Jul 19, 2018

  1. Slide 1: Analyst Conference – Half-Year 2018 Results

    Analyst Conference – Half -Year 2018 Results Kuehne + Nagel International AG 19 July 2018 (CET 14.00) | Schindellegi, Switzerland

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Kuehne + Nagel International AG, may cause actual development and results to differ materially from the

  3. Slide 3: Successful in a changing landscape

    Successful in a changing landscape Group’s EBIT for the first half-year with CHF 501 million over last year (+ 11%) Strong volume increase in Seafreight of 8%, 172,000 TEUs Strong volume increase in Airfreight of 18%, 132,000 tons Overland with substantial net turnover growth of 18% Contract Logisti

  4. Slide 4: Overview Group performance first half-year 2018

    Overview Group performance first half-year 2018 Net Turnover Gross Profit 10'066 + CHF 1’251 m 3'806 + CHF 429 m 8'815 3'377 + 14.2% + 12.7% 2017 2018 2017 2018 EBIT Earnings per Share 501 3.25 + CHF 49 m 2.96 + CHF 0.29 452 + 10.8% + 9.8% 2017 2018 2017 2018 19/07/2018 | © Kuehne + Nagel | Analyst

  5. Slide 5: Seafreight Airfreight

    Seafreight Airfreight No. 1 worldwide No. 2 worldwide Accelerated volume growth in Q2 Solid performance of with 11.1% perishable acquisitions Continued pressure on gross profit margin Strong organic volume growth offset by operational cost control with industry-solutions 19/07/2018 | © Kuehne + Na

  6. Slide 6: Seafreight and Airfreight – business development

    Seafreight and Airfreight – business development  Volume leverage leads to high conversion rate in Q2 of 30.1% with increased EBIT per TEU vs. Q1 2018  New business wins on digital end-to-end solutions  Strong growth in Asia and North America  Strong volume growth in Pharma, Healthcare, Aerospac

  7. Slide 7: Seafreight and Airfreight - volumes

    Seafreight and Airfreight - volumes 1,300 600 1,210 1,200 550 1,118 1,120 1,089 1,079 1,100 500 1,048 1,023 1,039 1,028 1,000 450 TEUs '000 448 441 Tons '000 900 422 400 391 800 381 350 362 315 350 700 324 300 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 2017 2017 2017 2018 2018 19/07/2018 | © Kue

  8. Slide 8: Seafreight – GP/Expenses/EBIT per TEU in CHF

    Seafreight – GP/Expenses/EBIT per TEU in CHF 450 400 350 348 350 332 328 327 324 331 321 311 300 (239) (234) (237) (241) 250 (232) (225) (229) (229) (217) GP/TEU in CHF 200 Exp/TEU in CHF 150 EBIT/TEU in CHF 111 114 100 91 96 98 95 90 94 100 50 - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 2017 2

  9. Slide 9: Airfreight – GP/Expenses/EBIT per 100 kg in CHF

    Airfreight – GP/Expenses/EBIT per 100 kg in CHF 90 80 77 74 68 69 69 70 66 67 65 64 60 (54) (51) (47) (48) (48) 50 (46) (46) (45) (46) GP/100 kg in CHF 40 Exp/100 kg in CHF 30 EBIT/100 kg in CHF 23 23 21 23 21 20 19 19 19 20 10 - Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2016 2016 2017 2017 2017 2017 2018 201

  10. Slide 10: Seafreight and Airfreight – Income Statements

    Seafreight and Airfreight – Income Statements Income statement YTD YTD Variance in CHF million HY1 2017 HY1 2018 2018/2017 Growth Forex1 Turnover 4,262 4,336 1.7% 1.1% 0.6% Gross profit 687 733 6.7% 4.9% 1.8% EBITDA 209 221 5.7% 2.0% 3.7% EBIT 198 210 6.1% 2.6% 3.5% Conversion rate 28.8% 28.6% Volum

  11. Slide 11: Overland

    Overland Strategic development of industry-specific solutions Leverage of top line growth driving significant profitability improvement 19/07/2018 | © Kuehne + Nagel | Analyst Conference 11

  12. Slide 12: Overland – performance of business unit

    Overland – performance of business unit Income statement YTD YTD Variance in CHF million HY1 2017 HY1 2018 2018/2017 Growth Forex1 Net turnover 1,497 1,762 17.7% 10.9% 6.8% Gross profit 472 550 16.5% 8.2% 8.3% EBITDA 49 64 30.6% 25.9% 4.7% EBIT 29 43 48.3% 44.3% 4.0% EBITDA / Net turnover margin 3.3

  13. Slide 13: Contract Logistics

    Contract Logistics Successful with scalable logistics solutions Rollout of new WMS-solution and warehousing technology ongoing 19/07/2018 | © Kuehne + Nagel | Analyst Conference 13

  14. Slide 14: Contract Logistics – performance of business unit

    Contract Logistics – performance of business unit Income statement YTD YTD Variance in CHF million HY1 2017 HY1 2018 2018/2017 Growth Acquisition Forex1 Net turnover 2,309 2,569 11.3% 4.7% 1.3% 5.3% Gross profit 1,724 1,935 12.2% 6.2% 0.5% 5.5% EBITDA 137 130 (5.1%) (12.4%) 0.7% 6.6% EBIT 74 66 (10.

  15. Slide 15: Income Statement

    Income Statement 2017 2017 YTD HY1 2018 2018 YTD HY1 Variance Variance in % CHF million Q1 Q2 2017 Q1 Q2 2018 2018/2017 Q1 Q2 2018/2017 Growth Acquisition Forex 1 Net turnover 4'299 4'516 8'815 4'862 5'204 10'066 1'251 563 688 14.2% 8.9% 1.7% 3.6% Gross profit 1'648 1'729 3'377 1'843 1'963 3'806 429

  16. Slide 16: Balance Sheet

    Balance Sheet December 31, June 30, December 31, June 30, CHF million 2017 2018 2017 2018 Assets Liabilities and equity Property, plant and equipment 1,249 1,253 Equity attributable to the equity holders 2,321 1,978 of the parent company Goodwill 849 840 Other intangibles 96 87 Non-controlling inter

  17. Slide 17: Cash and cash equivalents

    Cash and cash equivalents YTD YTD CHF million HY1 2017 HY1 2018 Cash and cash equivalents at the beginning of the period, net 837 710 (127) Operational cash flow 562 587 25 Changes in working capital (230) (246) (16) Income taxes paid (133) (134) (1) Main variances HY1 2018 vs. 2017 Cash flow from o

  18. Slide 18: Working Capital

    Working Capital June 30 June 30 Better/(worse) CHF million 2017 2018 2018 vs. 2017 Trade receivables/Contract assets/Work in progress 3,205 4,336 (1,131) Trade payables/Contract liabilities/Accrued trade expenses (2,418) (3,340) 922 Net working capital 787 996 (209) KPIs: Working capital intensity 3

  19. Slide 19: Return on capital employed (EBIT)

    Return on capital employed (EBIT) ROCE ROCE excl. acquisitions 78% *  Mix effect: 74% 73% 73% * 73% 73% Stronger growth in 74% 71% Contract Logistics leads to 70% 69% 69% higher asset allocation in 67% * 70% 67% proportion to Sea- and 70% 69% 69% 69% 66% 65% 66% 70% 68% 68% 67% Airfreight. 66% 63%

  20. Slide 20: Financial targets 2018

    Financial targets 2018 HY1 Targets YTD Market CHF million 2018 2022 HY1 2018 FY 2018 GROUP SEAFREIGHT Conversion rate 13.2% 16% Conversion rate 28.6% ROCE (excl. acquisitions) 63% 70% Volume growth 8.1% ~3% Effective tax rate 23% ~ 22 - 23% AIRFREIGHT Working capital intensity 4.1% 3.5 - 4.5% Conver

  21. Slide 21: Leading the Transformation in a changing landscape

    Leading the Transformation in a changing landscape Fast changing trade conditions Cost control to ascertain leverage Unpredictability of Brexit impact Digitisation as a game changer Currently gKNi WTI1 with stable outlook Value chain expansion Growth dynamic expected to reduce Acquisitions as an acc

  22. Slide 22: Slide 22

  23. Slide 23: Upcoming events 2018 - 2019

    Upcoming events 2018 - 2019 Q3 18.10.18 Nine-months 2018 results Q4 27.02.19 Full-year 2018 results Q1 25.04.19 Three-months 2019 results AGM 07.05.19 Annual General Meeting Q2 23.07.19 Half-year 2019 results Q3 22.10.19 Nine-months 2019 results 19/07/2018 | © Kuehne + Nagel | Analyst Conference 23

  24. Slide 24: Quarter over Quarter 2018/2017

    Quarter over Quarter 2018/2017 2017 2018 2017 2018 / 2017 Change in % 2018 / 2017 Change in mCHF CHF million Q4 Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL 1. Seafreight A) Income Statement Turnover 2,259 2,170 2,166 4,336 2,095 2,167 4,262 +3.6 (0.0) +1.7 75 (1) 74 Net Turnover 1,714 1,635 1,73

  25. Slide 25: Quarter over Quarter 2018/2017

    Quarter over Quarter 2018/2017 2017 2018 2017 2018 / 2017 Change in % 2018 / 2017 Change in mCHF CHF million Q4 Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL 3. Overland A) Income Statement Turnover 914 936 1,104 2,040 794 826 1,620 +17.9 +33.7 +25.9 142 278 420 Net Turnover 854 850 912 1,762 730

  26. Slide 26: Quarter over Quarter 2018/2017

    Quarter over Quarter 2018/2017 2017 2018 2017 2018 / 2017 Change in % 2018 / 2017 Change in mCHF CHF million Q4 Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL 5. Kuehne + Nagel Group A) Income Statement Turnover 6,012 5,795 6,143 11,938 5,185 5,390 10,575 +11.8 +14.0 +12.9 610 753 1,363 Customs dut

  27. Slide 27: Kuehne + Nagel International AG

    Kuehne + Nagel International AG Dorfstrasse 50 | 8834 Schindellegi | Switzerland | Telephone +41 (0)44 786 95 11 | www.kuehne-nagel.com

  28. Slide 28: Contact

    Contact Markus Blanka-Graff Andrea Kobi CFO Investor Relations markus.blanka@kuehne-nagel.com andrea.kobi@kuehne-nagel.com Tel: +41 (0)44 7869 644 Tel: +41 (0)44 7869 561 Disclaimer Investing in the shares of Kuehne + Nagel International AG involves risks. Prospective investors are strongly requeste

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