Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — FY2013 Earnings Presentation
34 slides from Kuehne & Nagel International's earnings presentation, Mar 3, 2014
Slide 1: Analyst Presentation – Full-Year Results 2013
Kuehne + Nagel International AG Analyst Presentation – Full-Year Results 2013 March 3, 2014 (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: Agenda
Agenda Overview Full-Year Results 2013 | Gerard van Kesteren Operating Review | Detlef Trefzger Financial Review | Gerard van Kesteren Outlook 2014 | Detlef Trefzger Kuehne + Nagel Group – Full-Year Results 2013 Slide 3
Slide 4: Overview Full-Year Results 2013 – Kuehne + Nagel Group
Overview Full-Year Results 2013 – Kuehne + Nagel Group Turnover Highlights Full-Year Results 2013 20753 20929 21000 20261 Increased turnover by 0.8% 20000 19596 Gross Profit up by 2.7% and EBIT by 9.0% (excl. one-off) 19000 CHF million Stable working capital intensity with 3.1% 18000 17406 at
Slide 5: Income Statement
Income Statement 2012 2012 2012 2012 YTD 2013 2013 2013 2013 YTD Var Var Var Var Var Var in % CHF million Q1 Q2 Q3* Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Q3 Q4 2013 2013 Turnover 4,834 5,228 5,409 5,282 20,753 5,094 5,300 5,311 5,224 20,929 260 72 (98) (58) 176 0.8% Gross profit 1,502 1,530 1,525 1,537 6,0
Slide 6: Agenda
Agenda Overview Full-Year Results 2013 | Gerard van Kesteren Operating Review | Detlef Trefzger Financial Review | Gerard van Kesteren Outlook 2014 | Detlef Trefzger Kuehne + Nagel Group – Full-Year Results 2013 Slide 6
Slide 7: Personal Remarks
Personal Remarks • 365 days with Kuehne + Nagel, CEO for 180 days • Dynamic, result-oriented organisation with flat hierarchy • Broad and loyal customer base, mainly small and medium-sized companies • Innovative products and development of complex logistics solutions in collaboration with our custom
Slide 8: The Kuehne + Nagel Management Team
The Kuehne + Nagel Management Team Kuehne + Nagel Group – Full-Year Results 2013 Slide 8
Slide 9: Highlights per Business Unit
Highlights per Business Unit Seafreight Airfreight Road & Rail Contract Logistics Market increased by 2 to 3% Stagnating market Market decreased Market increased by 2% between 0 to -2% High market rate volatility Rates declining in most Strong competitive trade lanes environment Kuehne
Slide 10: Seafreight – Performance of Business Unit
Seafreight – Performance of Business Unit Income Statement in CHF million 2012 2013 Variance Turnover 9,059 8,998 (0.7%) Gross profit 1,275 1,279 0.3% EBITDA 415 408 (1.7%) EBIT 391 384 (1.8%) EBIT in % of GP 30.7% 30.0% 1,000 45.0 914 911 923 906 TEU '000 Highlights 2013 879 861 900 838 819 40.0 GP
Slide 11: Airfreight – Performance of Business Unit
Airfreight – Performance of Business Unit Income Statement in CHF million 2012 2013 Variance Turnover 4,063 4,143 2.0% Gross profit 837 877 4.8% EBITDA excl. one-off item 229 247 7.9% EBIT excl. one-off item 203 222 9.4% One-off item (65) - EBIT 138 222 60.9% EBIT in % of GP 24.3% 25.3% 320 40.0 283
Slide 12: Road & Rail – Performance of Business Unit
Road & Rail – Performance of Business Unit Income Statement in CHF million 2012 2013 Variance Net Turnover 2,884 2,806 (2.7%) Gross profit 887 902 1.7% EBITDA 36 33 (8.3%) EBIT (16) (8) 50.0% EBITDA / Revenue margin 1.1% 1.1% 19 EBITDA 15 15 EBITDA/ 14 Revenue Highlights 2013 14 margin 11 Net turn
Slide 13: Contract Logistics – Performance of Business Unit
Contract Logistics – Performance of Business Unit Income Statement in CHF million 2012* 2013 Variance Net Turnover 4,069 4,251 4.5% Gross profit 3,056 3,158 3.3% EBITDA 150 191 27.3% EBIT 55 104 89.1% EBITDA / Revenue margin 3.4% 4.1% * incl. restatement of IAS 19 (revised) of CHF 1 million in perso
Slide 14: Agenda
Agenda Overview Full-Year Results 2013 | Gerard van Kesteren Operating Review | Detlef Trefzger Financial Review | Gerard van Kesteren Outlook 2014 | Detlef Trefzger Kuehne + Nagel Group – Full-Year Results 2013 Slide 14
Slide 15: Financial Overview
Financial Overview CHF million 2012 2013 Turnover 20,753 20,929 Gross Profit 6,094 6,257 EBITDA 855* 962 Net earnings for the year 484* 597 Dividend proposal 2013: EP S (basic) in CHF 4.05* 4.98 Dividend CHF 3.85 (2012: CHF 3.50) Total Assets 6,279 6,374 Extraordinary dividend of CHF 2.00 Equity
Slide 16: Balance Sheet
Balance Sheet 31 December 31 December 31 December 31 December CHF million CHF million 2012 2013 2012 2013 Assets Liabilities and equity Property, plant and equipment 1,134 1,151 Equity attributable to the equity 2,396 2,537 holders of the parent company Goodwill 694 688 Intangibles 141 89 Non-contro
Slide 17: Intangibles Amortisation 2013 - 2016
Intangibles Amortisation 2013 - 2016 CHF million Actual Plan Plan Plan Business Unit 2013 2014 2015 2016 Seafreight 9 8 8 3 Airfreight 12 9 9 5 Road & Rail 21 20 19 7 Contract Logistics 16 12 11 3 Total Kuehne + Nagel 58 49 47 18 Kuehne + Nagel Group – Full-Year Results 2013 Slide 17
Slide 18: Cash Flow
Cash Flow CHF million 2012 2013 Better/(Worse) Operational cash flow 849 966 117 Changes in working capital (117) 17 134 Better/ Income taxes paid (176) (190) (14) CF from investing activities 2012 2013 (Worse) Cash flow from operating activities 556 793 237 Acquisitions (9) - 9 Cash flow from inves
Slide 19: Cash Conversion 2012/2013
Cash Conversion 2012/2013 CHF million 2012 2013 A) Earnings for the year (Kuehne + Nagel share) 484 597 B) Change in cash and cash equivalents (incl. financial investment) (29) 184 Add back dividend payments + 460 + 419 Total 431 603 C) Cash conversion in % 89.0 101.0 Kuehne + Nagel Group – Full-Yea
Slide 20: Development Cash Flow and Working Capital
Development Cash Flow and Working Capital 2,000 793 (146) 1,800 (419) 1,600 1,400 (44) 1.242 1,200 1.058 1,000 800 600 400 200 0 01.01.2013 Cash flow from Capex (net) Dividend payment Other 31.12.2013 operating activities CHF Mio. Dec 2011 Dec 2012 Dec 2013 Net Working Capital 599 671 658 Working Ca
Slide 21: Development of Dividends
Development of Dividends 2009 2010 2011 2012 2013 A) Earnings for the year (Kuehne + Nagel share) in CHF million1 466 600 600 484 597 B) Dividend in CHF per share - Ordinary dividend 2.30 2.75 3.85 3.50 3.85 - Extraordinary dividend - 1.50 - - 2.00 Total 2.30 4.25 3.85 3.50 5.85 C) Dividend in CHF m
Slide 22: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) 55% 54% 53% 53% 52% 51% 51% 50% 49% * 49% 49% 48% * 48% * 48% 48% 47%* 47% 46% 45% Q1/201 2 Q2/201 2 Q3/201 2 Q4/201 2 Q1/201 3 Q2/201 3 Q3/201 3 Q4/201 3 * Rolling EBIT excluding EU Antitrust fine Kuehne + Nagel Group – Full-Year Results 2013 Slide 22
Slide 23: Financial Targets 2014
Financial Targets 2014 • Conversion rate (EBIT/GP) in Seafreight 30% and Profitability Airfreight 25% Working Capital • Target to maintain working capital intensity at 3.5 – 4.0% & Cash • Emphasis on safeguarding a high cash position CAPEX • Estimate at approx. CHF 190 million (2013: CHF 181 million
Slide 24: Agenda
Agenda Overview Full-Year Results 2013 | Gerard van Kesteren Operating Review | Detlef Trefzger Financial Review | Gerard van Kesteren Outlook 2014 | Detlef Trefzger Kuehne + Nagel Group – Full-Year Results 2013 Slide 24
Slide 25: Outlook Volume Development 2014
Outlook Volume Development 2014 2013 - Actual 2014 - Estimate Business Unit Market Kuehne + Nagel Market Kuehne + Nagel Seafreight + 2 to 3 % +3% + 2 to 4 % 1.5 x Market [TEU] Airfreight 0% +4% + 1 to 3 % 1.5 x Market [Ton] Road & Rail 0 to -2 % -3 % + 1 to 3 % Market [Net turnover] Contract Logisti
Slide 26: Thank you for your attention.
Thank you for your attention.
Slide 27: Appendix
KUEHNE+NAGEL Appendix
Slide 28: Upcoming Events 2014
Upcoming Events 2014 April 14, 2014 First quarter 2014 results May 6, 2014 Annual General Meeting May 13, 2014 Dividend payment for 2013 July 14, 2014 Half-year 2014 results October 13, 2014 9-months 2014 results Kuehne + Nagel Group – Full-Year Results 2013 Slide 28
Slide 29: Development Main Exchange Rates vs. CHF
Development Main Exchange Rates vs. CHF Income Statement (average rates) EUR USD GBP Full-year 2011 1.2350 0.8908 1.4226 2012 1.2062 0.9327 1.4827 2013 1.2296 0.9237 1.4492 Better/(Worse) 1.9% (1.0%) (2.3%) (1.7%) Net earnings impact Kuehne + Nagel Group – Full-Year Results 2013 Slide 29
Slide 30: Quarter over Quarter 2013 - 2012
Quarter over Quarter 2013 - 2012 CHF million 2013 2012 2013 / 2012 Change in % 2013 / 2012 Change in mCHF Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Seafreight Turnover 2,204 2,279 2,362 2,153 8,998 2,031 2,283 2,499 2,246 9,059 +8.5 (0.2) (5.5) (4.1) (0.7) 173 (4) (137)
Slide 31: Quarter over Quarter 2013 - 2012
Quarter over Quarter 2013 - 2012 CHF million 2013 2012 2013 / 2012 Change in % 2013 / 2012 Change in mCHF Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Road & Rail Logistics Turnover 737 790 762 770 3,059 744 814 790 807 3,155 (0.9) (2.9) (3.5) (4.6) (3.0) (7) (24) (28) (37
Slide 32: Quarter over Quarter 2013 - 2012
Quarter over Quarter 2013 - 2012 CHF million 2013 2012 2013 / 2012 Change in % 2013 / 2012 Change in mCHF Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Real Estate Turnover - 1 - - 1 - 1 0 1 2 (50.0) - - - (1) (1) Gross Profit - 1 - - 1 - 1 0 0 1 0.0 - - - - - Opex 15 15 16
Slide 33: Restated Segment Reporting 2009/2013
Restated Segment Reporting 2009/2013 Segment Insurance Brokers will be reported under Seafreight Segment Real Estate will be reported under Contract Logistics 2009 restated 2010 restated 2011 restated 2012 restated 2013 restated CHF million Contract Contract Contract Contract Contract Seafreight
Slide 34: Contact and Disclaimer
Contact Gerard van Kesteren Markus Blanka-Graff Andrea Kobi CFO Director Corporate Finance + Investor Relations Investor Relations gerard.vankesteren@kuehne-nagel.com markus.blanka@kuehne-nagel.com andrea.kobi@kuehne-nagel.com Tel: +41 (0)44 7869 564 Tel: +41 (0)44 7869 644 Tel: +41 (0)44 7869 561 D
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