Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — Q2 2024 Earnings Presentation
24 slides from Kuehne & Nagel International's earnings presentation, Jul 23, 2024
Slide 1: Analyst conference Half-year 2024 results
Analyst conference Half-year 2024 results Stefan Paul, CEO Markus Blanka-Graff, CFO Kuehne + Nagel International AG July 23, 2024
Slide 2: Half-year 2024 financial results
Half-year 2024 financial results Profits still lower than prior year but sequentially higher Growth Profit Cash ▪ Net turnover of CHF 11.6 billion vs. ▪ EBIT of CHF 778 million vs. CHF ▪ Free Cash Flow of CHF 40 million CHF 12.7 billion in 2023 (-9%) 1,135 million in 2023 (-32%) ▪ Gross Profit of CH
Slide 3: Sea Logistics: Effective ongoing yield and cost management
Sea Logistics Effective ongoing yield and cost management TEU ‘000 GP/TEU in CHF EBIT/TEU in CHF ▪ Continued focus on yield ▪ Minimal Red Sea effect in H1 ▪ Seasonal broad-based uplift Q1 to Q2 1,138 563 266 with North America trades most robust 1,106 502 188* 1,107 1,002 1,097 473 428 469 207 146*
Slide 4: Air Logistics: Increased yield and volume
Air Logistics Increased yield and volume Tons ‘000 GP/100 kg in CHF EBIT/100 kg in CHF ▪ Improved yield in Q2 ▪ Maintaining market share in hard cargo segment (ex e-commerce) 200 100 493 533 491 517 ▪ Asia exports drive YoY and seasonal 482 93 sequential growth 100 83 80 80 83 26* 24* 2014 - 2019 av
Slide 5: Road Logistics: Headwinds persist
Road Logistics Headwinds persist In CHF million Q2 2024 Q2 2023 Variance YTD 2024 YTD 2023 Variance ▪ Market demand soft in core Net turnover 910 917 (1%) 1,770 1,873 (5%) geographies Gross profit 345 335 3% 670 684 (2%) ▪ Evidence of price/mix pressure EBIT * 36 41 (12%) 66 93 (29%) ▪ Recurring Q2
Slide 6: Contract Logistics: Major project ramp-up contributes to growth
Contract Logistics Major project ramp-up contributes to growth In CHF million Q2 2024 Q2 2023 Variance YTD 2024 YTD 2023 Variance ▪ Market share expanding in healthcare Net turnover 1,196 1,210 (1%) 2,335 2,473 (6%) and e-commerce Gross profit 908 848 7% 1,764 1,719 3% ▪ Adidas Southern European dis
Slide 7: Roadmap 2026 Update Q2 2024
Roadmap 2026 Update Q2 2024 ▪ Kuehne+Nagel Experience: Increased proximity to Sea Logistics customers Opened seven new Sea Logistics Customer Care locations year-to-date to increase customer proximity and service quality in key markets, especially for small and medium-sized enterprises. ▪ Market Pot
Slide 8: Financial KPIs
Financial KPIs Analyst conference half-year 2024 results | © Kuehne+Nagel Group | 8
Slide 9: Income Statement: Quarter over quarter comparison
Income Statement Quarter over quarter comparison Variance YTD Variance in % 2024 2024 2024 2023 2023 2023 CHF million Acquisition/ Q1 Q2 YTD Q1 Q2 YTD 2024/2023 Q1 Q2 2024/2023 Growth Forex 1 disposal Net turnover 5,508 6,046 11,554 6,748 5,973 12,721 (1,167) (1,240) 73 (9.2%) (7.5%) 1.0% (2.7%) Gro
Slide 10: Working Capital: Focus on DSO – DPO spread
Working Capital Focus on DSO – DPO spread June 30, March 31, Dec 31, June 30, Better/(worse) CHF million 2024 2024 2023 2023 Jun 2024 vs. Dec 2023 Trade receivables/contract assets 4,466 4,410 4,006 4,472 (460) Trade payables/accrued trade expenses/contract liabilities (3,408) (3,420) (3,238) (3,731
Slide 11: Cash and Free Cash Flow
Cash and Free Cash Flow Improved free cash generation over the course of H1 YTD YTD In CHF million CHF million Variance 3,751 2024 2023 Cash and cash equivalents January 1, net 2,008 3,770 (1,762) FCF 2022 Cash flow from operating activities 491 827 (336) FCF 2023 FCF 2024 2,629 Cash flow from inves
Slide 12: FCF Conversion
Historic Free Cash Conversion in Q2 Average 2010 - 2020 FCF conversion c.70% 100% FCF Conversion* 69% 50% 0% Q2:10 Q2:11 Q2:12 Q2:13 Q2:14 Q2:15 Q2:16 Q2:17 Q2:18 Q2:19 Q2:20 Aggregate Q2:24 Key factors impacting Q2 2024 Free Cash Flow conversion: ▪ Ongoing Red Sea disruption effects greater and lon
Slide 13: Sea Logistics eTouch update: Modest gains since first report
Sea Logistics eTouch update: Modest gains since first report ▪ Progress centered in digital Documentation ▪ Run-rate staff-hour savings +1% vs. year-end 2023; staff-hour cost inflation +5% ▪ CR impact of 120 bps vs. 100 bps at year-end 2023 Sea Logistics workflow area* hours saved (000) CHF / TEU Se
Slide 14: Air Logistics eTouch update: CR impact expands further
Air Logistics eTouch update: CR impact expands further ▪ Improvement in Invoicing traction ▪ Annualized run-rate staff-hour savings of about 1.7m hours or +3% vs. 2023 ▪ CR impact of 340 bps vs. 300 bps six months ago: wage inflation + lower gross profit base Air Logistics workflow area* hours saved
Slide 15: Key takeaways
Key takeaways: 1. Well-positioned to grow as demand environment improves 2. Red Sea situation requires enhanced logistics services 3. Streamlined structure means better customer proximity, faster decision making 4. Emerging cost savings expected to more than offset inflation 5. Intensive yield and p
Slide 16: Inspire. Empower. Deliver.
Inspire. Empower. Deliver. © 2024 Kuehne+Nagel. All rights reserved.
Slide 17: Upcoming events
Upcoming events 03.10. - 23.10.2024 Closed period 23.10.2024 Nine-months 2024 results 02.01. - 04.03.2025 Closed period 04.03.2025 Full-year 2024 results 04.04. -24.04.2025 Closed period 24.04.2025 Three-months 2025 results 07.05.2025 Annual General Meeting 04.07. - 24.07.2025 Closed period 24.07.20
Slide 18: Balance Sheet
Balance Sheet June 30, December 31, June 30, December 31, CHF million 2024 2023 2024 2023 Assets Equity and Liabilities Equity attributable to the equity holders 2,565 3,153 Property, plant and equipment 868 762 of the parent company Right-of-use assets 1,957 1,534 Non-controlling interests 7 6 Good
Slide 19: ROCE
ROCE 259% 164% 161% 117% 90% 71% 52% 51% Calculation: last four quarters EBIT (rolling EBIT) divided by the average of the last four quarters capital employed (rolling capital employed); capital employed: assets and liabilities excluding investments in joint ventures and associates, deferred tax ass
Slide 20: Quarter-over-quarter 2024/2023 Sea and Air Logistics
Quarter-over-quarter 2024/2023 Sea and Air Logistics 2024 2023 Change in % Change in mCHF CHF million Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Sea Logistics Income Statement Turnover 2,205 2,434 4,639 3,025 2,548 5,573 (27.1) (4.5) (16.8) (820) (114) (934) Net Turnover 1,926 2,131 4,057 2,667
Slide 21: Quarter-over-quarter 2024/2023 Road and Contract Logistics
Quarter-over-quarter 2024/2023 Road and Contract Logistics 2024 2023 Change in % Change in mCHF CHF million Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Road Logistics Income Statement Turnover 969 1,031 2,000 1,101 1,054 2,155 (12.0) (2.2) (7.2) (132) (23) (155) Net Turnover 860 910 1,770 956 91
Slide 22: Quarter-over-quarter 2024/2023 Kuehne+Nagel Group
Quarter-over-quarter 2024/2023 Kuehne+Nagel Group 2024 2023 Change in % Change in mCHF CHF million Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Kuehne+Nagel Group Income Statement Turnover 6,104 6,684 12,788 7,527 6,700 14,227 (18.9) (0.2) (10.1) (1,423) (16) (1,439) Customs duties and taxes (596
Slide 23: Disclaimer: Forward-looking statements
Disclaimer Forward-looking statements 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
Slide 24: Contacts
Contacts 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 Analyst conference half-
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