Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — Q3 2020 Earnings Presentation

29 slides from Kuehne & Nagel International's earnings presentation, Oct 20, 2020

  1. Slide 1: Analyst conference Nine-months 2020 results

    Analyst conference Nine-months 2020 results Kuehne + Nagel International AG Schindellegi, Switzerland 20 October 2020 (CET 14.00)

  2. Slide 2: Overview nine-months results 2020

    01 Overview nine-months results 2020 2

  3. Slide 3: Highlights nine-months results 2020

    Highlights nine-months results 2020 Net turnover Gross profit 14,839 CHF million 9-m 2019: 15,838 5,516 CHF million 9-m 2019: 5,989 6.3% decrease including negative FX 7.9% decrease on the previous year impact of 5.7% on the previous year Free cash flow EPS 811 CHF million 9-m 2019: 617 4.80 CHF 9-m

  4. Slide 4: Kuehne+Nagel with higher profit in Q3 2020

    Kuehne+Nagel with higher profit in Q3 2020  EBIT of CHF 304  EBIT of CHF 38 million million  Return to increasing  Domestic transport volumes of SME volumes back to customers in Q3 pre-crisis levels 2020  Low volumes in North America Sea Market Air in times Road Contract Group Logistics of Covi

  5. Slide 5: Business unit update

    KUEHNE+NAGEL @) Business unit update

  6. Slide 6: Sea and Air Logistics volumes

    Sea and Air Logistics volumes TEUs '000 Tons '000 1,279 1,246 1,230 1,214 1,171 1,190 1,146 1,100 1,075 439 441 424 409 404 406 372 354 315 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020  Sea Logistics volumes 9-months 2020 7.7% below prior year; Q3 2020 down by 5.1%  Air

  7. Slide 7: Sea Logistics

    Sea Logistics Positive SME volume trend reversal in Q3 vs. Q2 2020 Increase of imports in Europe and North America from Asia Tight cost control 7

  8. Slide 8: Sea Logistics

    Sea Logistics GP/TEU in CHF Exp/TEU in CHF EBIT/TEU in CHF 333 313 321 320 311 311 306 308 299 (247) (232) (236) (219) (222) (225) (219) (211) (198) 113 92 81 97 99 95 83 73 80 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020  Gross profit 9-months 2020 at CHF 1,051 million,

  9. Slide 9: Air Logistics

    Air Logistics Automotive and perishables volumes recovering Positive one-off impact of net CHF 63 million 9

  10. Slide 10: Air Logistics

    Air Logistics* GP/100 kg in CHF Exp/100 kg in CHF EBIT/100 kg in CHF 106 89 84 81 83 80 75 70 70 (71) (61) (64) (59) (60) (59) (56) (50) (51) 35 * 23 22 19* 30 20 19 20 19 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020 * adjusted for impairment of intangibles in Q4 2019 of C

  11. Slide 11: Road Logistics

    Road Logistics Demand of domestic transports in Europe back to pre-crisis levels North America volumes still lag except for pharma and e-commerce 11

  12. Slide 12: Road Logistics

    Road Logistics EBIT in CHF m EBIT/Net TO margin in % 24 21 19 17 17 16 14 2.7 12 2.3 2.1 9 2.0 1.8 2.0 1.6 1.5 1.2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2019 2020 2020 2020  Net turnover 9-months 2020 at CHF 2,380 million, 11.3% below prior year, Q3 2020 CHF 796 million, 7.7% below pr

  13. Slide 13: Contract Logistics

    Contract Logistics Market share gains in essential goods sectors Strict cost management 13

  14. Slide 14: Contract Logistics (excl. real estate transactions)

    Contract Logistics (excl. real estate transactions) 7.5 70 7.0 EBIT in CHF m EBIT/Net TO margin in % 6.5 60 6.0 49 5.5 50 5.0 4.5 Axis Title 40 34 33 4.0 29 30 25 25 26 27 4.0 3.5 3.0 20 16 2.5 2.5 2.4 2.4 2.0 2.3 1.5 10 1.9 1.8 2.0 1.0 - 1.3 0.5 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 2

  15. Slide 15: Key financial figures nine-months 2020

    03 Key financial figures nine-months 2020 15

  16. Slide 16: Income Statement

    Income Statement 2019 2019 2019 2019 2020 2020 2020 2020 Variance YTD Variance in % CHF million Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD 2020/2019 Q1 Q2 Q3 2020/2019 Growth Acquisition Forex 1 Net turnover 5,237 5,363 5,238 15,838 4,912 4,896 5,031 14,839 (999) (325) (467) (207) (6.3%) (1.3%) 0.7% (5.7%) Gross pro

  17. Slide 17: Income statement - EBIT reconciliation nine-months 2020

    Income statement - EBIT reconciliation nine-months 2020 CHF million (0.4%) = (CHF 3m) (0.5%) = (CHF 4m) 794 (23) 790 (6) 771 (63) 47 768 EBIT 2019 Net profit on EBIT 2019 EBIT 2020 Net profit on Quick net impact of FX impact 2020 EBIT 2020 as reported sale of operational as reported sale of early op

  18. Slide 18: Balance sheet

    Balance sheet December 31, September 30, December 31, September 30, CHF million 2019 2020 2019 2020 Assets Liabilities and equity Equity attributable to the equity holders 2,316 2,229 Property, plant and equipment 1,089 985 of the parent company Right-of-use assets 1,899 1,460 Non-controlling intere

  19. Slide 19: Cash / free cash flow

    Cash / free cash flow YTD YTD In CHF million 1138 CHF million Variance Q3 2019 Q3 2020 Cash and cash equivalents January 1, net 488 904 416 FCF 2018 1 FCF 2019 Operational cash flow 1,323 1,406 83 FCF 2020 811 Changes in working capital (57) (54)1 3 Income taxes paid (167) (213) (46) 617 Cash flow f

  20. Slide 20: Working capital

    Working capital Sep 30, Sep 30, Better/(worse) CHF million 2019 2020 2020 vs. 2019 Trade receivables/Contract assets/Work in progress 4,055 3,676 379 Trade payables/Contract liabilities/Accrued trade expenses (3,020) (2,904) (116) Net working capital 1,035 772 263 KPIs: Working capital intensity 4.1

  21. Slide 21: Return on capital employed (ROCE)

    Return on capital employed (ROCE) ROCE ROCE excl. Acq./Assets held for sale/Quick settlement 80%  Covid-19 effect: 75% Sudden decrease of profitability 70% on similar asset base leads to 66% 67% 66% 65% lower ROCE 65% 62% 61% 60% 60% 60% 58%  Acquisition effect: 62% 55% Acquisition impact of one y

  22. Slide 22: Financial targets

    Financial targets Volume Volume Net turnover Net turnover Group growth growth growth1 growth1 9-months Targets 2020 2022 KN KN KN KN (6)% (12)% (8)% (4)% Conversion rate 14% 16% 2020 2020 2020 2020 ROCE (excl. acq.) 65% 70% Effective tax rate 26% 24 - 26% Market Market Market Market (6)% (14)% (8)%

  23. Slide 23: © 2020 Kuehne+Nagel All rights reserved

    © 2020 Kuehne+Nagel All rights reserved

  24. Slide 24: Upcoming events

    Upcoming events 04.01. – 03.03.2021 Closed period 03.03.2021 Full-year 2020 results 07. – 26.04.2021 Closed period 26.04.2021 Three-months 2021 results 04.05.2021 Annual General Meeting 07. – 20.07.2021 Closed period 20.07.2021 Half-year 2021 results 06. – 20.10.2021 Closed period 20.10.2021 Nine-mo

  25. Slide 25: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 1. Sea Logistics A) Income Statement Turnover 2,235 2,095 2,251 6,581 2,437 2,453 2,480 7,370 (8.3) (14.6) (9.2) (10.7) (202) (358) (229) (789) Net Turnover 1,7

  26. Slide 26: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 3. Road Logistics A) Income Statement Turnover 975 829 899 2,703 1,037 1,040 996 3,073 (6.0) (20.3) (9.7) (12.0) (62) (211) (97) (370) Net Turnover 863 721 796

  27. Slide 27: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 5. Kuehne+Nagel Group A) Income Statement Turnover 5,860 5,713 5,875 17,448 6,323 6,404 6,271 18,998 (7.3) (10.8) (6.3) (8.2) (463) (691) (396) (1,550) Customs

  28. Slide 28: Contact

    Contact Markus Blanka-Graff CFO markus.blanka@kuehne-nagel.com Tel: +41 (0)44 7869 644 Christopher Combé Head of Investor Relations christopher.combe@kuehne-nagel.com Tel: +41 (0)44 7869 693 Andrea Kobi Investor Relations andrea.kobi@kuehne-nagel.com Tel: +41 (0)44 7869 561 28

  29. Slide 29: 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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