Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — FY2009 Earnings Presentation
54 slides from Kuehne & Nagel International's earnings presentation, Mar 1, 2010
Slide 1: Analyst Conference – Result 2009
Kuehne + Nagel International AG Analyst Conference – Result 2009 March 1, 2010 Zurich, Switzerland
Slide 2: Agenda
Agenda • Welcome and Highlights 2009 Gerard van Kesteren • Operating Review 2009 Reinhard Lange • Financial Review 2009 Gerard van Kesteren • Outlook 2010 Reinhard Lange Analyst Conference – Result 2009 Slide 2
Slide 3: Agenda
Agenda • Welcome and Highlights 2009 Gerard van Kesteren • Operating Review 2009 Reinhard Lange • Financial Review 2009 Gerard van Kesteren • Outlook 2010 Reinhard Lange Analyst Conference – Result 2009 Slide 3
Slide 4: Review 2009
Review 2009 • Expansion of market share in difficult economic environment • Cost reduction in line with volume decrease • Productivity at record level • Investment in sales, niche products and industry-specific solutions Highly satisfactory results Emerging from crisis in a stronger position Analyst
Slide 5: Worldwide Annual Growth of Real GDP and Trade Volume
Worldwide Annual Growth of Real GDP and Trade Volume % 12 Global trade volume 8 4 Real GDP 0 -4 -8 -12 2000 2005 2010 (E) Average multiple of global trade volume vs. real GDP growth 2.2x Significant decrease of trade volumes in 2009E Slow recovery currently expected for 2010E Source: IMF World Econo
Slide 6: Real GDP Growth Rate in Selected Areas
Real GDP Growth Rate in Selected Areas 15.0% 7.6% 10.0% 7.3% 6.2% 5.4% 4.2% 3.0% 5.0% 2.0% 1.8% 1.5% 0.7% 0.4% 0.3% 0.0% -2.7% -5.0% -4.2% -5.0% -10.0% USA Euro Area Central and Eastern Middle East Asia-Pacific Europe 2008 2009 (E) 2010 Source: IMF World Economic Outlook Database, October 2009 Analy
Slide 7: Overview Financials 2009
Overview Financials 2009 CHF million 2007 2008 2009 Gross Profit 6'014 6'253 5'863 EBITDA 1'019 1'020 885 * Earnings for the period 539 588 471 * Cash & Cash Equivalents 812 1'018 971 Per share CHF EPS (basic) 4.54 4.96 3.95 Equity % Total Assets 36.8 37.3 38.7 Operational Cash Flow 1'043 1'015 893
Slide 8: Income Statement
Income Statement Variance 2009 / 2008 CHF million 2007 2008 2009 Variance Excl. Forex Invoiced turnover 20'975 21'599 17'406 (19.4%) (13.9%) Gross profit 6'014 6'253 5'863 (6.2%) 1.2% Gross profit margin 28.7% 29.0% 33.7% Total expenses (4'995) (5'233) (4'978)* EBITDA 1'019 1'020 885 (13.2%) (8.0%)
Slide 9: Segment Reporting by Business Unit
Segment Reporting by Business Unit Invoiced Excl. Gross Excl. Excl. EBITDA Turnover Forex profit Forex Forex C H F m illio n 2008 2009 2008 2009 2008 2009 Seafreight 10'032 7'572 (20.0%) 1'377 1'202 (7.6%) 458 376 * (13.3%) Airfreight 3'859 2'857 (21.4%) 726 635 (7.6%) 221 159 * (24.4%) Road & Rail
Slide 10: Segment Reporting by Region
Segment Reporting by Region Invoiced Excl. Gross Excl. Excl. EBITDA Turnover Forex profit Forex Forex C H F m illio n 2008 2009 2008 2009 2008 2009 Europe 14'216 11'582 (12.0%) 4'708 4'511 4.5% 626 579* (1.3%) America's 4'235 3'175 (21.4%) 907 775 (10.6%) 174 128* (21.8%) Asia Pacific 1'862 1'442 (2
Slide 11: EBITDA by Business Unit
EBITDA by Business Unit 2008 2009 Contract Contract Logistics Logistics Road & Rail 21% 23% Logistics 2% Road & Rail Logistics 6% Others Others 10% 11% Airfreight 22% Airfreight 18% Seafreight Seafreight 45% 42% Analyst Conference – Result 2009 Slide 11
Slide 12: EBITDA by Regions
EBITDA by Regions 2008 2009 Asia Pacific Asia Pacific 18% America's 16% America's 14% 17% Middle East, Middle East, Central Asia Central Asia & Africa & Africa 4% 4% Europe Europe 66% 61% Analyst Conference – Result 2009 Slide 12
Slide 13: Shareholders Structure December 31, 2009
Shareholders Structure December 31, 2009 Kuehne Foundation 4.3% Free float 40.3% Treasury Kuehne shares Holding 1.3% 54.1% Analyst Conference – Result 2009 Slide 13
Slide 14: Agenda
Agenda • Welcome and Highlights 2009 Gerard van Kesteren • Operating Review 2009 Reinhard Lange • Financial Review 2009 Gerard van Kesteren • Outlook 2010 Reinhard Lange Analyst Conference – Result 2009 Slide 14
Slide 15: Positioning of Top Competitors
Economic Development and Market Dynamics Positioning of Top Competitors CONTRACT Competitor SEA AIR ROAD & RAIL LOGISTICS Kühne + Nagel 1 3 6 3 DHL 2 1 2 1 DB Schenker Logistics 3 2 1 6 CEVA > 10 5 - 2 Panalpina 4 4 - - DSV > 10 > 10 3 > 10 Source: Annual Reports, Kuehne + Nagel Estimates; Rank base
Slide 16: Volume Development 2009
Economic Development and Market Dynamics Volume Development 2009 Seafreight Airfreight Road & Rail Contract Logistics -1.7% -4.6% -5% -9.2% -12% -12% -22.9% -20% TEU Tonnage Revenue Revenue Kuehne + Nagel Market* * Kuehne + Nagel estimate Analyst Conference – Result 2009 Slide 16
Slide 17: Financial Performance 2005 – 2009 (Turnover, Gross Profit)
Financial Performance 2005 – 2009 (in CHF million) Turnover Gross Profit 25'000 21'599 20'975 7'000 6'253 6'014 5'863 18'194 20'000 17'406 6'000 5'253 14'049 5'000 15'000 4'000 2'769 10'000 3'000 2'000 5'000 1'000 0 0 05 06 07 08 09 05 06 07 08 09 20 20 20 20 20 20 20 20 20 20 Analyst Conference – R
Slide 18: Financial Performance 2005 – 2009 (EBITDA, Net Earnings)
Financial Performance 2005 – 2009 (in CHF million) 1'200 1'019 1'020 EBITDA 1'000 885 857 800 575 600 585 536 Net Earnings 400 459 467 324 200 0 05 06 07 0 8 09 20 20 20 20 20 Analyst Conference – Result 2009 Slide 18
Slide 19: Financial Performance 2009 EBITDA
Financial Performance 2009 (in CHF million) 376 EBITDA 400 350 300 250 201 200 159 150 80 100 52 17 50 - ht* ht* Rail tics tate nc e g g is s a ei ei d& og E ur afr i rfr oa t L eal Ins Se A R rac R nt Co Including provision for competition investigations and associated legal expenses of CHF 10 mill
Slide 20: Update on Anti-trust Investigation
Update on Anti-trust Investigation • On October 10, 2007 various Kuehne + Nagel organizations have been inspected. • Full cooperation with respective authorities. • Proceedings have been closed in Australia and Canada. • A provision for potential claims and fines from the US Department of Justice ha
Slide 21: Seafreight
KUEHNE+NAGEL (f) Seafreight
Slide 22: Global Volume Development World Container Traffic
Global Volume Development World Container Traffic in million TEU 160 148 140 142 139 128 132 120 117 100 106 92 80 81 70 72 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009F 2010F Estimates by Drewry and by Kuehne + Nagel in million TEU Analyst Conference – Result 2009 Slide 22
Slide 23: Global Container Demand
Global Container Demand 8% 6% 5% 5% 4% 4% 2% 0% 2008 2009 2010 2011 -2% -4% -6% -8% -10% -12% -12% Estimated Demand Analyst Conference – Result 2009 Slide 23
Slide 24: Performance of Business Unit Seafreight 2007 – 2009
Performance of Business Unit Seafreight 2007 – 2009 January - December CHF million 2007 2008 2009 Variance Excl. Forex Invoiced turnover 9'641 10'032 7'572 (24.5%) (20.0%) Gross profit 1'270 1'377 1'202 (12.7%) (7.6%) EBITDA 427 458 376 * (17.9%) (13.3%) EBIT 388 414 339 * (18.1%) (13.8%) EBITDA / T
Slide 25: Seafreight – TEU and GP-per-Unit Development
Seafreight – TEU and GP-per-Unit Development 800 560 GP per Unit (in CHF) TEU (in '000) 700 540 600 520 500 500 400 480 300 460 200 440 100 420 0 400 Q1 2009 Q2 2009 Q3 2009 Q4 2009 TEU GP per Unit His. Average Analyst Conference – Result 2009 Slide 25
Slide 26: Airfreight
KUEHNE-+NAGEL L Airfreight
Slide 27: Global Volume Development
Global Volume Development 25.0% 2.5% 20.0% 2.0% 15.0% Global vs KN Growth % 10.0% KN Market Share % 1.5% 5.0% 1.0% 0.0% -5.0% 0.5% -10.0% -15.0% 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Global Growth KN Growth Market Share Analyst Conference – Result 2009 Slide 27
Slide 28: Performance of Business Unit Airfreight 2007 – 2009
Performance of Business Unit Airfreight 2007 – 2009 January - December CHF million 2007 2008 2009 Variance Excl. Forex Invoiced turnover 3'719 3'859 2'857 (26.0%) (21.4%) Gross profit 698 726 635 (12.5%) (7.6%) EBITDA 219 221 159 * (28.1%) (24.4%) EBIT 197 198 139 * (29.8%) (25.8%) EBITDA / Turnover
Slide 29: Airfreight – Tons and GP-per-Unit Development
Airfreight – Tons and GP-per-Unit Development 240 1.10 Tons (in '000) GP per Unit (in CHF) 220 1.00 200 180 0.90 160 140 0.80 120 0.70 100 80 0.60 60 40 0.50 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Tons (in '000) GP per Unit His. Average Analyst Conference – Result 2009 Slide 29
Slide 30: Road & Rail Logistics
KUEHNE-+NAGEL L Ne \ Road & Rail Logistics
Slide 31: Highlights of Business Unit Road & Rail Logistics 2009
Highlights of Business Unit Road & Rail Logistics 2009 • Successful integration of Alloin Group • Market share gains in FTL / LTL business • Cost reduction and productivity increase through optimisation of processes • European road transport market contracted by approximately 20% • Creating synergie
Slide 32: Performance of Business Unit Road & Rail Logistics 2007 – 09
Performance of Business Unit Road & Rail Logistics 2007 – 2009 January - December CHF million 2007 2008 2009 Variance Forex Acquisitions Growth Invoiced turnover 2'821 2'853 2'511 (12.0%) (5.9%) 15.6% (21.6%) Net invoiced turnover 2'523 2'693 2'360 (12.4%) (5.9%) 16.4% (22.9%) Gross profit 515 590 8
Slide 33: Network Overview
Network Overview 38 countries 170 locations 6849 employees Analyst Conference – Result 2009 Slide 33
Slide 34: Contract Logistics
KUEHNE+NAGEL Contract Logistics
Slide 35: Highlights of Business Unit Contract Logistics 2009
Highlights of Business Unit Contract Logistics 2009 • Reduced demand of large customers resulting in idle space in 1st half of 2009 • Increase of utilisation rate through new business wins in 2nd half of 2009 • Start of worldwide implementation of KN Production System leads to significant cost reduc
Slide 36: Performance Business Unit Contract Logistics 2007 – 2009
Performance Business Unit Contract Logistics 2007 – 2009 January - December CHF million 2007 2008 2009 Variance Forex Acquisitions Growth Invoiced turnover 4'666 4'732 4'345 (8.2%) (8.2%) 0.4% (0.4%) Net invoiced turnover 4'480 4'599 4'163 (9.5%) (8.2%) 0.5% (1.7%) Gross profit 3'490 3'514 3'167 (9.
Slide 37: Network Expansion: Driving Globalisation of Contract Logistics
Strategic Goals Network Expansion: Driving Globalisation of Contract Logistics Number of countries 65 65 40 30 Kuehne + Nagel has 28 the widest global reach 18 15 14 13 Source: Company reports and Kuehne + Nagel estimates Analyst Conference – Result 2009 Slide 37
Slide 38: Agenda
Agenda • Welcome and Highlights 2009 Gerard van Kesteren • Operating Review 2009 Reinhard Lange • Financial Review 2009 Gerard van Kesteren • Outlook 2010 Reinhard Lange Analyst Conference – Result 2009 Slide 38
Slide 39: Currency Development CHF
Currency Development CHF Impact Dec 2008 Dec 2009 Variance % Net Earning Balance Sheet Euro 1.5033 1.4899 (0.9% ) US Dollar 1.0714 1.0355 (3.4% ) British Pound 1.5660 1.6544 5.6% Income Statement Euro 1.5883 1.5099 (4.9% ) US Dollar 1.0851 1.0811 (0.4% ) (5%) British Pound 2.0024 1.6774 (16.2% ) Ana
Slide 40: Reconciliation
Reconciliation Organic CHF million 2008 Forex Acquisitions 2009 Growth Invoiced turnover 21'599 (1'198) 650 (3'645) 17'406 Gross profit 6'253 (466) 382 (306) 5'863 EBITDA 1'020 (53) 40 (122) 885 EBIT 736 (33) (17) (92) 594 EBT 764 610 Net Earnings 588 471 FTE 59'012 - 3'108 (1'582) 60'538 Analyst Co
Slide 41: Amortisation & Impairment of Intangibles & Goodwill
Amortisation & Impairment of Intangibles & Goodwill (including software) Actual Actual of which Forecast CHF million 2008 2009 impairment 2010 Seafreight 24 19 - 13 Airfreight 12 7 - 8 Road & Rail Logistics 19 31 - 25 Contract Logistics 59 50 9 34 Real Estate 1 - - - Insurance Broker - - - - TOTAL G
Slide 42: Development of Working Capital
Development of Working Capital CHF million Dec 2007 Dec 2008 Dec 2009 Trade receivables & Work in progress 2'928 2'483 2'300 Trade payables & Accrued trade expenses (2'309) (1'893) (1'844) Net Working Capital 619 590 456 in % of annualised Revenue 2.9% 2.7% 2.6% KPI DSO 41.9 37.6 40.6 DPO 51.4 44.0
Slide 43: Capital Expenditure of Fixed Assets
Capital Expenditure of Fixed Assets Actual Actual Actual Forecast CHF million 2007 2008 2009 2010 Europe 150 198 204 125 America's 28 23 49 15 Asia Pacific 33 8 3 15 Middle East, Central Asia & Africa 20 16 8 5 Total Fixed Assets 231 245 264 160 Sea & Air Logistics 38 16 13 30 Road & Rail Logistics
Slide 44: Return on Capital Employed
Return on Capital Employed CHF million EBIT Capital Employed * ROCE in % 2008 2009 2008 2009 2008 2009 Seafreight 414 339 99 36 > 100 % Airfreight 198 139 28 (54) > 100 % Road & Rail Logistics (10) (22) 44 131 - - Contract Logistics 54 65 541 509 10% 13% Others 80 73 822 794 10% 9% TOTAL 736 594 1'5
Slide 45: Corporation Tax
Corporation Tax CHF million 2007 2008 2009 Earning before Tax 708 764 610 Tax charge 169 176 139 * Effective Tax Rate 24% 23% 23% Estimated effective Tax Rate for 2010 21% 21 % excluding provision for competition investigations and associated legal expenses of CHF 35 million. Analyst Conference – Re
Slide 46: Agenda
Agenda • Welcome and Highlights 2009 Gerard van Kesteren • Operating Review 2009 Reinhard Lange • Financial Review 2009 Gerard van Kesteren • Outlook 2010 Reinhard Lange Analyst Conference – Result 2009 Slide 46
Slide 47: Outlook 2010
Outlook 2010 • In general, an improvement of the economic situation is expected, but on a low level. • Still substantial risks of a fall-back of economy • Government debts • Unemployment • Carriers financial situation Analyst Conference – Result 2009 Slide 47
Slide 48: Outlook 2010 – Volume Growth
Outlook 2010 – Volume Growth +12% +10% +5% +10% +5% +6% +5% +3% Seafreight Airfreight Road & Rail Contract Logistics TEU Tonnage Volume / Price Volume Kuehne + Nagel targets 2010 Market estimate 2010 Analyst Conference – Result 2009 Slide 48
Slide 49: Outlook 2010 – Evaluation of Situation
Outlook 2010 – Evaluation of Situation Sustainability of growth Hold back on FTE adjustment until end Q1 2010 Margin pressure Sea & Air Expected normalisation of GP / Unit as soon as freight rates stabilise Analyst Conference – Result 2009 Slide 49
Slide 50: Success Factors for a Leading Global Position
Success Factors for a Leading Global Position Strategy Focus on providing integrated logistics solutions Continue global expansion, with the target to balance trade lanes Continue profitable growth above market average in all business units Continue expansion of European overland operations Maximise
Slide 51: Corporate Timetable 2010
Corporate Timetable 2010 April 19, 2010 First quarter 2010 results May 18, 2010 Annual General Meeting May 26, 2010 Dividend distribution 2009 July 19, 2010 Half-year 2010 results September 24, 2010 Investors Day October 18, 2010 Nine-months 2010 results Analyst Conference – Result 2009 Slide 51
Slide 52: Q&A
Q&A Analyst Conference – Result 2009 Slide 52
Slide 53: Thank you for your attention.
Thank you for your attention.
Slide 54: Disclaimer
Disclaimer Investing in the shares of Kuehne + Nagel International Ltd. involves risks. Prospective investors are strongly requested to consult their investment advisors and tax advisors prior to investing in shares of Kuehne + Nagel International Ltd. This document contains forward-looking statemen
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