Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — FY2011 Earnings Presentation

38 slides from Kuehne & Nagel International's earnings presentation, Mar 5, 2012

  1. Slide 1: Analyst Conference Call – 2011 (full year) Results

    Kuehne + Nagel International AG Analyst Conference Call – 2011 (full year) Results March 5, 2012 (CET 14.00) Schindellegi, Switzerland

  2. Slide 2: Agenda

    Agenda Highlights 2011 | Gerard van Kesteren Operating Review 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange Kuehne + Nagel Group– results 2011 (full year) Slide 2

  3. Slide 3: Highlights 2011

    Highlights 2011 Volume development per business unit Key figures  Record results with net profit up 12.2% (currency adj.) 19% 20%  Strong volume growth above 15% market in all business units 13% 11%  Material negative forex impact 10% 8% 5-6% of 12.2% 5% 5% 3%  Working capital intensity 0% at 3.

  4. Slide 4: Priorities 2011

    Priorities 2011  Market leader position in perishables (Colombia, Ecuador, Netherlands, New Zealand) Acquisitions  Expansion of European Overland Network (RH Freight, Drude)  Total cash outflow of CHF 174 mio  Employment of + 500 sales staff (+ 23%) Sales  Total annual sales cost CHF 280 mio 

  5. Slide 5: Development Main Exchange Rates vs. CHF

    Development Main Exchange Rates vs. CHF Full Year Impact Variance Net 2009 2010 2011 % Earnings Income Statement (average rates) Euro 1.5099 1.3864 1.2350 (10.9%) US Dollar 1.0811 1.0430 0.8908 (14.6%) (12.2%) British Pound 1.6774 1.6119 1.4226 (11.7%) Kuehne + Nagel Group– results 2011 (full year)

  6. Slide 6: Income Statement

    Income Statement 2011 Forex impact 2011 CHF million 2010 with 2010 Variance CHF million In % Actual Variance fx rates Invoiced turnover 20'261 22'148 1'887 (2'552) (12.6%) 19'596 (665) Gross profit 5'958 6'660 702 (762) (12.8%) 5'898 (60) Gross profit margin 29.4% 30.1% 37.2% 30.1% Total expenses (4

  7. Slide 7: Agenda

    Agenda Highlights 2011 | Gerard van Kesteren Operating Review 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange Kuehne + Nagel Group– results 2011 (full year) Slide 7

  8. Slide 8: Seafreight

    Seafreight Kuehne + Nagel Group– results 2011 (full year) Slide 8

  9. Slide 9: Seafreight: Highlights 2011

    Seafreight: Highlights 2011 Seafreight forwarding market Seafreight carrier market  Market growth 5-6%  Overcapacity still a major issue  Particular strong growth in Intra Asia  Low freight rates created huge losses and from Europe to Asia for carriers (freight rate increases for  Slow down in

  10. Slide 10: Performance of Business Unit Seafreight

    Performance of Business Unit Seafreight CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 7'572 8'996 8'330 (7.4%) 4.1% 0.6% (12.2%) Gross profit 1'202 1'224 1'254 2.5% 15.0% 0.9% (13.4%) EBITDA 376 441 438 (0.7%) 10.9% 0.7% (12.2%) EBIT 339 416 411 (1.2%) 11.3% - (1

  11. Slide 11: Seafreight Volume by Traffic Lane 2011

    Performance of Business Unit Seafreight Volume by Traffic Lane 2011 y-o-y 000„ TEU„s growth 3'500 +10% Other Export 3'000 Other Export +12% North America Export 2'500 North America Export +12% 2'000 Asia Export Asia Export 1'500 1'000 +10% 500 Europe Export Europe Export 0 2010 2011 Kuehne + Nagel G

  12. Slide 12: Airfreight

    Airfreight Kuehne + Nagel Group– results 2011 (full year) Slide 12

  13. Slide 13: Airfreight: Highlights 2011

    Airfreight: Highlights 2011 Airfreight forwarding market Airfreight carrier market  Negative market growth -0.7%  Lower utilisation (created by weaker  Asia Pacific region seeing the most demand and additional capacity brought accentuated decline to the market)…  Market contracted starting May 2

  14. Slide 14: Performance of Business Unit Airfreight

    Performance of Business Unit Airfreight CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 2'857 4'044 4'020 (0.6%) 9.8% 3.1% (13.5%) Gross profit 635 749 795 6.1% 17.9% 2.3% (14.0%) EBITDA 159 234 252 7.7% 21.8% - (14.1%) EBIT 139 216 232 7.4% 22.7% (1.4%) (13.9%) EB

  15. Slide 15: Airfreight Volume by Traffic Lane 2011

    Performance of Business Unit Airfreight Volume by Traffic Lane 2011 000„ TON„s y-o-y growth 1200 +55% Other Export 900 Other Export +7% North America Export North America Export (-10%) 600 Asia Export Asia Export +10% 300 Europe Export Europe Export 0 2010 2011 Kuehne + Nagel Group– results 2011 (fu

  16. Slide 16: Road & Rail Logistics

    Road & Rail Logistics Kuehne + Nagel Group– results 2011 (full year) Slide 16

  17. Slide 17: Road & Rail: Highlights 2011

    Road & Rail: Highlights 2011 Road & Rail forwarding market Road & Rail carrier market  European overland market growth  High margin pressure due to significant of 5% increase in fuel cost  Growth in Germany outpacing France  Further reduction of capacity in main and UK European Markets  Souther

  18. Slide 18: Performance of Business Unit Road & Rail

    Performance of Business Unit Road & Rail CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 2'511 2'776 2'967 6.9% 10.4% 9.5% (13.0%) Net Invoiced Turnover 2'360 2'543 2'685 5.6% 8.5% 10.4% (13.3%) Gross profit 818 825 857 3.9% 7.5% 9.2% (12.8%) EBITDA 52 43 42 (2.3%)

  19. Slide 19: Contract Logistics

    Contract Logistics Kuehne + Nagel Group– results 2011 (full year) Slide 19

  20. Slide 20: Contract Logistics: Highlights 2011

    Contract Logistics: Highlights 2011 Contract Logistics market  2011 saw demand grow by some 3%, about half the historical rate  Market conditions weakened in Europe, in particular in the second half of 2011  Asia and emerging markets continuously outpacing average market growth Kuehne + Nagel per

  21. Slide 21: Performance of Business Unit Contract Logistics

    Performance of Business Unit Contract Logistics CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 4'345 4'316 4'168 (3.4%) 8.8% 0.2% (12.4%) Net Invoiced Turnover 4'163 4'103 3'919 (4.5%) 7.6% 0.2% (12.3%) Gross profit 3'167 3'119 2'954 (5.3%) 6.8% 0.2% (12.3%) EBITD

  22. Slide 22: Contract Logistics: Focus 2012

    Performance of Business Unit Contract Logistics Focus 2012  Turnaround France  Reduction of risk profile through structured review of all customer contracts  Focus on profitability rather than aggressive top line growth Kuehne + Nagel Group– results 2011 (full year) Slide 22

  23. Slide 23: Agenda

    Agenda Highlights 2011 | Gerard van Kesteren Operating Review 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange Kuehne + Nagel Group– results 2011 (full year) Slide 23

  24. Slide 24: Financial Overview

    Financial Overview CHF million 2009 2010 2011 Gross Profit 5'863 5'958 5'898 EBITDA 885 1'004 978 Earnings for the period 471 605 606 Cash & Cash Equivalents 971 1'315 1087* *includes Financial Investments of CHF 252 mio EPS in CHF (basic) 3.95 5.06 5.04 Equity % Total Assets 38.6% 40.0% 39.2% Opera

  25. Slide 25: Balance Sheet

    Balance Sheet 31 December 31 December 31 December 31 December CHF million CHF million 2010 2011 2010 2011 Assets Liabilities and equity Equity attributable to the equity holders 2'365 2'382 of the parent company Non-controlling interests 13 23 Total equity 2'378 2'405 Non-current assets 2'058 2'239

  26. Slide 26: Cash Flow and Net Working Capital Development

    Cash Flow and Net Working Capital Development 2'500 680 (354) 2'000 (534) 1'500 1315 1'315 CHF mio (20) 1087 1'087 1'000 500 0 Cash an d cash Cash flo w from Cap ex (n et) an d Cash p aid to Exch an ge d ifferences Cash an d cash eq uivalents o p erating activities Acq uisitions sh areh olders eq ui

  27. Slide 27: Development of ROCE

    Development of ROCE 58% CHF mio ROCE 56% 2010 2011 54% 52% Seafreight > 100 % 50% Airfreight > 100 % 48% Road & Rail - - 46% 44% Contract Logistics 19% 19% 42% TOTAL 54% 56% 40% 38% 2007 2008 2009 2010 2011 Development of ROCE confirms resilience of Kuehne + Nagel’s business model Kuehne + Nagel Gro

  28. Slide 28: Finance targets 2012

    Finance targets 2012 CAPEX  Planned at similar level CHF 218 mio (2011: CHF 207 mio) Working  Target to maintain working capital intensity at 3.5 – 4.0% Capital Cash  Emphasis on safeguarding a high cash position ROCE  Maintain stable level around 50% Tax  Confirm sustainable tax rate around 21

  29. Slide 29: Staff Retention

    Staff Retention Kuehne + Nagel Group– results 2011 (full year) Slide 29

  30. Slide 30: Agenda

    Agenda Highlights 2011 | Gerard van Kesteren Operating Review 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange Kuehne + Nagel Group– results 2011 (full year) Slide 30

  31. Slide 31: Strategy Update

    Strategy Update Volume growth year-on-year Market Target CAGR* 2010 2011 2012E 2012 ‚Go for Growth‘ Seafreight 16% 11% 10%+ 5% 15% [TEU] Airfreight 25% 13% 8 – 10% 0% 11% [t] Road & Rail 16% 19% 8 – 10% 3% > 10% [net inv. turnover] Contract Logistics 5% 8% 3% 3% 8% [net inv. turnover] * Compound ann

  32. Slide 32: Outlook 2012

    Outlook 2012 Cost management Focus 2012  Further investments in  Increase productivity in standard IT systems Sea/Air  Expansion of sales  Improve return on sales organisation for specific customer groups  Reduce risk profile of Contract Logistics and  Reduction of administrative improve profi

  33. Slide 33: Annex I - Upcoming Events 2012

    Annex I-Upcoming Events 2012 April 16  1st quarter 2012 results May 8  Annual General Meeting July 16  Half-year 2012 results September 19  Capital Market Day 2012 in London October 15  9-months 2012 results Kuehne + Nagel Group– results 2011 (full year) Slide 33

  34. Slide 34: Annex II: Key Data Sheet Quarter by Quarter 2011-2010

    Annex II: Key Data Sheet Quarter by Quarter 2011-2010 CHF million 2011 2010 2011 / 2010 Change in % Variance in CHF million 2011 / 2010 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Seafreight Turnover 2'071 2'065 2'099 2'095 8'330 1'992 2'313 2'487 2'204 8'996 +4.0 (10.7)

  35. Slide 35: Annex II: Key Data Sheet Quarter by Quarter 2011-2010

    Annex II: Key Data Sheet Quarter by Quarter 2011-2010 CHF million 2011 2010 2011 / 2010 Change in % Variance in CHF million 2011 / 2010 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Road & Rail Logistics Turnover 681 812 702 772 2'967 646 724 692 714 2'776 +5.4 +12.2 +1.4 +

  36. Slide 36: Annex II: Key Data Sheet Quarter by Quarter 2011-2010

    Annex II: Key Data Sheet Quarter by Quarter 2011-2010 CHF million 2011 2010 2011 / 2010 Change in % Variance in CHF million 2011 / 2010 Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Real Estate Turnover 0 1 0 1 2 1 2 1 0 4 (100.0) (50.0) (100.0) +100 (50.0) (1) (1) (1) 1 (2

  37. Slide 37: Thank you for your attention.

    Thank you for your attention.

  38. Slide 38: 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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