Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — Q1 2018 Earnings Presentation
28 slides from Kuehne & Nagel International's earnings presentation, Apr 24, 2018
Slide 1: Analyst Conference – First quarter 2018 results
Analyst Conference – First quarter 2018 results Kuehne + Nagel International AG 24 April 2018 (CET 14.00) | Zurich, Switzerland
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
Slide 3: A good start into 2018
A good start into 2018 Group’s earnings for the first quarter with CHF 184 million again over last year (+ 12%) Strong volume increase in Seafreight of 5%, 51,000 TEUs Strong volume increase in Airfreight of 21%, 72,000 tons Overland with substantial net turnover growth of 16% Contract Logistics wit
Slide 4: Overview Group performance first quarter 2018
Overview Group performance first quarter 2018 Net Turnover Gross Profit 1'843 4'862 4'299 + CHF 563 m 1'648 + CHF 195 m 2017 2018 + 13.1% 2017 2018 + 11.8% EBIT Earnings per Share 236 + CHF 27 m 1.53 + CHF 0.16 209 1.37 + 12.9% + 11.7% 2017 2018 2017 2018 24/04/2018 | © Kuehne + Nagel | Analyst Conf
Slide 5: Seafreight Airfreight
Seafreight Airfreight No. 1 worldwide No. 2 worldwide Two digital platforms launched (Sea Explorer & KN ESP) Perishable acquisitions fully integrated Change in import terms for recycling Continued volume growth with material to China industry-solutions 24/04/2018 | © Kuehne + Nagel | Analyst Con
Slide 6: Seafreight and Airfreight – business development
Seafreight and Airfreight – business development Sea Explorer and KN Login ESP platforms launched Change in import terms for recycling material to China Strong growth in Asia and North America Perishable acquisitions fully integrated Continued volume growth in Perishables, Pharma, Healthca
Slide 7: Seafreight and Airfreight - volumes
Seafreight and Airfreight - volumes 1'200 500 1'118 1'120 1'089 1'079 1'100 1'048 1'023 1'039 450 1'028 448 1'000 943 422 400 900 391 TEUs '000 381 350 Tons '000 362 800 350 324 700 315 300 303 600 250 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2017 2017 2017 2018 24/04/2018 | © Kuehne + Na
Slide 8: Seafreight – GP/Expenses/EBIT per TEU in CHF
Seafreight – GP/Expenses/EBIT per TEU in CHF 450 400 369 350 348 350 332 328 327 324 331 321 300 (256) (239) (234) (237) (241) 250 (232) (225) (229) (229) GP/TEU in CHF 200 Exp/TEU in CHF 150 EBIT/TEU in CHF 113 111 114 100 96 91 98 95 90 100 50 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017
Slide 9: Airfreight – GP/Expenses/EBIT per 100 kg in CHF
Airfreight – GP/Expenses/EBIT per 100 kg in CHF 90 80 78 77 74 68 69 70 66 67 65 64 60 (53) (54) (51) (47) (48) (48) 50 (46) (46) (45) GP/100 kg in CHF 40 Exp/100 kg in CHF 30 EBIT/100 kg in CHF 25 23 23 21 21 20 19 19 19 20 10 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 2017 2017 2017 201
Slide 10: Seafreight and Airfreight – Income Statements
Seafreight and Airfreight – Income Statements Income statement Q1 Q1 Variance in CHF million 2017 2018 2018/2017 Growth Forex1 Turnover 2'095 2'170 3.6% 1.6% 2.0% Gross profit 337 357 5.9% 4.1% 1.8% EBITDA 99 102 3.0% (2.1%) 5.1% EBIT 93 97 4.3% -% 4.3% Conversion rate 27.6% 27.2% Volume in '000 TEU
Slide 11: Overland
Overland Strategic development of industry-specific solutions Leverage of top line growth driving significant profitability improvement Disposal of Brazilian Overland business 24/04/2018 | © Kuehne + Nagel | Analyst Conference 11
Slide 12: Overland – performance of business unit
Overland – performance of business unit Income statement Q1 Q1 Variance in CHF million 2017 2018 2018/2017 Growth Forex1 Net turnover 730 850 16.4% 10.9% 5.5% Gross profit 226 264 16.8% 10.2% 6.6% EBITDA 17 33 94.1% 94.1% -% EBIT 7 24 242.9% 228.6% 14.3% EBITDA / Net turnover margin 2.3% 3.9% EBIT /
Slide 13: Contract Logistics
Contract Logistics Successful with scalable logistics solutions Roll out of new WMS-solution and Warehousing technology started 24/04/2018 | © Kuehne + Nagel | Analyst Conference 13
Slide 14: Contract Logistics – performance of business unit
Contract Logistics – performance of business unit Income statement Q1 Q1 Variance in CHF million 2017 2018 2018/2017 Growth Acquisition Forex1 Net turnover 1'115 1'236 10.9% 4.6% 1.0% 5.3% Gross profit 844 939 11.3% 5.1% 0.6% 5.6% EBITDA 65 66 1.5% (6.2%) 3.1% 4.6% EBIT 37 34 (8.1%) (13.5%) - 5.4% E
Slide 15: Income Statement
Income Statement 2017 2018 Variance Variance in % CHF million Q1 Q1 2018/2017 2018/2017 Growth Acquisition Forex 1 Net turnover 4'299 4'862 563 13.1% 8.4% 1.6% 3.1% Gross profit 1'648 1'843 195 11.8% 6.3% 1.3% 4.2% Gross profit margin 38.3% 37.9% EBITDA 257 289 32 12.5% 7.8% 1.2% 3.5% EBITDA margin
Slide 16: Balance Sheet
Balance Sheet December 31, March 31, December 31, March 31, CHF million 2017 2018 2017 2018 Assets Liabilities and equity Property, plant and equipment 1'249 1'250 Equity attributable to the equity holders 2'321 2'463 of the parent company Goodwill 849 838 Other intangibles 96 88 Non-controlling int
Slide 17: Cash Flow
Cash Flow Q1 Q1 CHF million Variance 2017 2018 Operational cash flow 262 276 14 Changes in working capital (241) (199) 42 Income taxes paid (43) (44) (1) Cash flow from operating activities (22) 33 55 Cash flow from investing activities 18 (34) (52) Cash flow from financing activities (5) (11) (6) E
Slide 18: Working Capital development
Working Capital development March 31 March 31 Better/(worse) CHF million 2017 2018 2018 vs. 2017 Trade receivables/Contract assets/Work in progress 3'122 3'986 (864) Trade payables/Contract liabilities/Accrued trade expenses (2'333) (3'011) 678 Net working capital 789 975 (186) KPIs: Working capital
Slide 19: Return on capital employed (EBIT)
Return on capital employed (EBIT) ROCE ROCE excl. acquisitions 78% * 74% 73% 74% 73%* 73% 73% 71% 70% 69% 69% 70% 67% 70% 70%* 69% 67% 69% 69% 66% 65% 68% 68% 66% 64% 67% 66% 62% 64% 64% 62% 58% 54% 50% Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q
Slide 20: Financial targets 2018
Financial targets 2018 Q1 Targets Q1 Market CHF million 2018 2022 2018 2018 GROUP SEAFREIGHT Conversion rate 12.8% 16% Conversion rate 27.2% ROCE (excl. acquisitions) 65% 70% Volume growth 5.0% ~4% Effective tax rate 23% ~ 22 - 23% AIRFREIGHT Working capital intensity 4.2% 3.5 - 4.5% Conversion rate
Slide 21: Leading the Transformation – focus topics 2018
Leading the Transformation – focus topics 2018 Cost control to ascertain leverage benefits Digitisation as game changer for new solutions and productivity improvements Investing in new opportunities connected to value chain expansion Acquisitions as an accelerator for our strategy implementation 24/
Slide 22: Slide 22
Slide 23: Upcoming events 2018
Upcoming events 2018 AGM 08.05.18 Annual General Meeting Div 15.05.18 Dividend payment for 2017 Q2 19.07.18 Half-year 2018 results Q3 18.10.18 Nine-months 2018 results Q4 27.02.19 Full-year 2018 results 24/04/2018 | © Kuehne + Nagel | Analyst Conference 23
Slide 24: Quarter over Quarter 2018/2017
Quarter over Quarter 2018/2017 2018 / 2018 / 2017 2017 2017 2018 2017 CHF million Change in Change in % mCHF Q4 Q1 Q1 Q1 Q1 1. Seafreight A) Income Statement Turnover 2'259 2'170 2'095 +3.6 75 Net Turnover 1'714 1'635 1'546 +5.8 89 Gross Profit 363 357 337 +5.9 20 Opex (250) (255) (238) (7.1) (17) E
Slide 25: Quarter over Quarter 2018/2017
Quarter over Quarter 2018/2017 2018 / 2018 / 2017 2017 2017 2018 2017 CHF million Change in Change in % mCHF Q4 Q1 Q1 Q1 Q1 3. Overland A) Income Statement Turnover 914 936 794 +17.9 142 Net Turnover 854 850 730 +16.4 120 Gross Profit 249 264 226 +16.8 38 Opex (224) (231) (209) (10.5) (22) EBITDA 25
Slide 26: Quarter over Quarter 2018/2017
Quarter over Quarter 2018/2017 2018 / 2018 / 2017 2017 2017 2018 2017 CHF million Change in Change in % mCHF Q4 Q1 Q1 Q1 Q1 5. Kuehne + Nagel Group A) Income Statement Turnover 6'012 5'795 5'185 +11.8 610 Customs duties and taxes (943) (933) (886) (5.3) (47) Net Turnover 5'069 4'862 4'299 +13.1 563
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
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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