Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — FY2010 Earnings Presentation

39 slides from Kuehne & Nagel International's earnings presentation, Mar 1, 2011

  1. Slide 1: Kuehne + Nagel International AG – Analyst Conference 2010 Results

    Kuehne + Nagel International AG Analyst Conference – 2010 Results March 1, 2011 (CET 14.00) Schindellegi, Switzerland

  2. Slide 2: Agenda

    Agenda Welcome & Highlights 2010 | Gerard van Kesteren Operating Review 2010 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2011 | Reinhard Lange 2010 results March 1, 2011 Slide 2

  3. Slide 3: Income Statement 2010

    Income Statement 2010 YTD 2010 / 2009 ONE OFF's in CHF million CHF million 2009 2010 Variance Excl. Forex Anti Trust 5.0 Invoiced turnover 17'406 20'261 16.4% 21.7% Onerous contracts 13.2 Gross profit 5'863 5'958 1.6% 7.4% Accelerated amortisation 5.5 Gross profit margin 33.7% 29.4% of "Intangibles"

  4. Slide 4: Income Statement 4th Quarter

    Income Statement 4th Quarter CHF million Q4 2010 / 2009 2009 2010 Variance Excl. Forex Invoiced turnover 4'606 5'083 10.4% 19.4% Gross profit 1'475 1'505 2.0% 11.6% Gross profit margin 32.0% 29.6% Total expenses (1'284) (1'247) EBITDA 191 258 35.1% 46.6% EBITDA margin 4.1% 5.1% EBITA 147 217 47.6% 6

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

    Development Main Exchange Rates vs. CHF Dec Dec Impact Variance % 2009 2010 Net Earnings Balance Sheet Euro 1.4899 1.2578 (15.6%) US Dollar 1.0355 0.9532 (7.9%) British Pound 1.6544 1.4712 (11.1%) Income Statement (Average) Expected Q1 2011 Euro 1.5099 1.3864 (8.2%) 1.27 US Dollar 1.0811 1.0430 (3.5

  6. Slide 6: Agenda

    Agenda Welcome & Highlights 2010 | Gerard van Kesteren Operating Review 2010 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2011 | Reinhard Lange 2010 results March 1, 2011 Slide 6

  7. Slide 7: Global growth strategy: Go for Growth

    Global growth strategy: “Go for Growth” 2009 2014 Invoiced Turnover CHF 17 bn CHF 30/40 bn Employees FTE 55‘000 FTE 80-90‘000 Seafreight TEU 2.5 mn TEU >5.0 mn TOP 1 Airfreight Tons 0.8 mn Tons >1.3 mn TOP 3 Road&Rail Logistics CHF 2.5 bn 100% invoiced TOP 3* turnover increase Contract Logistics CHF

  8. Slide 8: Status Update: Go for Growth

    Status Update: “Go for Growth” growth p.a. growth 2009 - 2014 2009 - 2010 Invoiced Turnover * CHF 15% 22% Employees FTE 9% 9% Seafreight TEU 15% 16% Airfreight Tons 12% 25% Road&Rail Logistics * CHF 15% 16% Contract Logistics * CHF 9% 5% * currency adjusted (net) invoiced turnover 2010 results March

  9. Slide 9: Segment Reporting by Business Unit

    Segment Reporting by Business Unit Invoiced Turnover Gross Profit EBIT * CHF million 2009 2010 % 2009 2010 % 2009 2010 % Seafreight 7'572 8'996 18.8% 1'202 1'224 1.8% 339 416 22.7% Airfreight 2'857 4'044 41.5% 635 749 18.0% 139 216 55.4% Road & Rail Logistics 2'511 2'776 10.6% 818 825 0.9% (22) (17)

  10. Slide 10: Seafreight

    Seafreight 2010 results March 1, 2011 Slide 10

  11. Slide 11: Seafreight: Highlights 2010

    Seafreight: Highlights 2010 Volume increase by 16% (market growth 10-12%)  Shipped 2‘945 million TEU‘s = record level (10% better than in 2008) Volatile freight rates  1st half-year strongly increasing – 2nd half-year strongly decreasing Started implementation of “go for growth” strategy  Develop

  12. Slide 12: Performance of Business Unit Seafreight

    Performance of Business Unit Seafreight CHF million YTD 2010/2009 Q4 2010/2009 2008 2009 2010 Variance Excl. Forex Variance Excl. Forex Invoiced turnover 10'032 7'572 8'996 18.8% 22.7% 12.9% 20.5% Gross profit 1'377 1'202 1'224 1.8% 5.5% 4.1% 11.2% EBITDA 458 376 441 17.3% 22.4% 38.3% 48.2% EBIT 414

  13. Slide 13: Seafreight: Market development (in TEU)

    Seafreight: Market development (in TEU) 20% 10% 0% Ø-Growth p.A. Kuehne + Nagel: 7% Market: 4% -10% -20% 2007 2008 2009 2010 Kuehne + Nagel Market 2010 results March 1, 2011 Slide 13

  14. Slide 14: Airfreight

    Airfreight 2010 results March 1, 2011 Slide 14

  15. Slide 15: Airfreight: Highlights 2010

    Airfreight: Highlights 2010 Volume increase by 25% (market growth 18-20%)  948‘000 TON‘s handled: Record level (13% better than in 2008) Volatile freight rates  1st half-year increasing – 2nd half-year stable Started implementation of the “go for growth” strategy  Development of activities in the

  16. Slide 16: Performance of Business Unit Airfreight

    Performance of Business Unit Airfreight CHF million YTD 2010/2009 Q4 2010/2009 2008 2009 2010 Variance Excl. Forex Variance Excl. Forex Invoiced turnover 3'859 2'857 4'044 41.5% 46.9% 25.8% 34.6% Gross profit 726 635 749 18.0% 22.7% 29.4% 37.2% EBITDA 221 159 234 47.2% 53.5% 266.7% 288.9% EBIT 198 1

  17. Slide 17: Airfreight: Market development (in TONs)

    Airfreight: Market development (in TON‘s) 30.0% 20.0% 10.0% Ø-Growth p.A. Kuehne + Nagel: 8% Market: 3% 0.0% -10.0% 2007 2008 2009 2010 -20.0% Kuehne + Nagel Market 2010 results March 1, 2011 Slide 17

  18. Slide 18: Road & Rail Logistics

    Road & Rail Logistics 2010 results March 1, 2011 Slide 18

  19. Slide 19: Road & Rail Logistics: Highlights 2010

    Road & Rail Logistics: Highlights 2010 Net invoiced turnover increase by 16% 15 million domestic groupage shipments and 100’000 FTL (full truck load) Competition, high price pressure and reduced margins Started implementation of the “go for growth” strategy  Development of the European groupage net

  20. Slide 20: Performance of Business Unit Road & Rail Logistics

    Performance of Business Unit Road & Rail Logistics YTD 2010/2009 Q4 2010/2009 CHF million 2008 2009 2010 Variance Excl. Forex Variance Excl. Forex Invoiced turnover 2'853 2'511 2'776 10.6% 18.5% 5.8% 17.7% Net Invoiced Turnover 2'693 2'360 2'543 7.8% 15.6% 3.0% 14.6% Gross profit 590 818 825 0.9% 8.

  21. Slide 21: Acquisition - RH Freight Group, Great Britain

    Acquisition - RH Freight Group, Great Britain  40 years of experience in groupage  630 employees in 17 locations in GB and two locations in Finland  Operates one of the largest European Road & Rail networks in GB  Daily schedules to 32 different locations within Europe  425.000 shipments per ye

  22. Slide 22: Acquisition - RH Freight Group, Great Britain

    Acquisition - RH Freight Group, Great Britain financial key data  Acquisition details to be disclosed in the Analyst Conference only 2010 results March 1, 2011 Slide 22

  23. Slide 23: Contract Logistics

    Contract Logistics 2010 results March 1, 2011 Slide 23

  24. Slide 24: Contract Logistics: Highlights 2010

    Contract Logistics: Highlights 2010 Invoiced turnover increased by 5%* (market growth 3%) Idle-space quote substantially reduced (Dec 09: 12% / Dec 10: 7%) Decrease in profitability caused by  Foreign-exchange impact  High start-up cost for customer contracts in USA  Provision for onerous contrac

  25. Slide 25: Performance of Business Unit Contract Logistics

    Performance of Business Unit Contract Logistics YTD 2010/2009 Q4 2010/2009 CHF million 2008 2009 2010 Variance Excl. Forex Variance Excl. Forex Invoiced turnover 4'732 4'345 4'316 (0.7%) 5.7% (2.4%) 7.7% Net Invoiced Turnover 4'599 4'163 4'103 (1.4%) 4.8% (4.9%) 4.8% Gross profit 3'514 3'167 3'119 (

  26. Slide 26: Agenda

    Agenda Welcome & Highlights 2010 | Gerard van Kesteren Operating Review 2010 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2011 | Reinhard Lange 2010 results March 1, 2011 Slide 26

  27. Slide 27: Financial Overview - Highlights

    Financial Overview - Highlights CHF million 2008 2009 2010 Gross Profit 6'253 5'863 5'958 EBITDA 1'020 885 1'004 Earnings for the period 585 467 601 Cash & Cash Equivalents 1'018 971 1'315 EPS (per share in CHF) 4.96 3.95 5.06 Equity % Total Assets 37.3% 38.6% 40.0% Operational Cash Flow 1'015 893 9

  28. Slide 28: Balance Sheet

    Balance Sheet Dec. 31, Dec. 31, CHF million 2009 2010 Assets Non-current assets 2'456 2'058 Trade receivables 2'004 2'077 Cash and cash equivalents 981 1'331 Others 492 475 Current assets 3'477 3'883 Total assets 5'933 5'941 Liabilities and equity Equity attributable to the equity holders of the par

  29. Slide 29: Cash Flow Statement

    Cash Flow Statement CHF million 2009 2010 Variance Operational cash flow 893 992 99 Changes in working capital 156 21 (135) Income taxes paid (213) (148) 65 Cash flow from operating activities 836 865 29 Cash flow from investing activities (519) (141) 378 Cash flow from financing activities (371) (2

  30. Slide 30: Development of Working Capital

    Development of Working Capital CHF million Dec 2008 Dec 2009 Dec 2010 Trade receivables & Work in progress 2'483 2'300 2'387 Trade payables & Accrued trade expenses (1'893) (1'844) (1'946) Net Working Capital 590 456 441 KPI: Net working capital in % of annualised Turnover 2.7% 2.6% 2.2% DSO 37.6 40

  31. Slide 31: ROCE – Development

    ROCE – Development EBIT Capital Employed ROCE in % CHF millio n 2009 2010 2009 2010 2009 2010 Seafreight 339 416 36 (6) > 100 % Airfreight 139 216 (54) (69) > 100 % Road & Rail Logistics (22) (17) 131 192 - - Contract Logistics 65 77 509 404 13% 19% Others 73 73 794 892 9% 8% TOTAL 594 765 1'416 1'4

  32. Slide 32: Share price development

    Share price development KUEHNE & NAGEL Namen vs. SMI, SPI und Bloomberg Europe Transportation Index seit 2007 Kuehne + Nagel shares vs. SMI, SPI and Bloomberg Europe Transportation Index since 2007 ,160 ,140 ,120 ,100 Index ,80 ,60 ,40 ,20 31/12/2006 31/03/2007 30/06/2007 30/09/2007 31/12/2007 31/03

  33. Slide 33: Financial Guidance 2011

    Financial Guidance 2011 Capex  Approximately CHF 210 million Amortisation  Approximately CHF 70 million (excl. RH acquisition) Depreciation  Approximately CHF 180 million Taxes  Effective tax rate of 21% 2010 results March 1, 2011 Slide 33

  34. Slide 34: Agenda

    Agenda Welcome & Highlights 2010 | Gerard van Kesteren Operating Review 2010 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2011 | Reinhard Lange 2010 results March 1, 2011 Slide 34

  35. Slide 35: Outlook 2011

    Outlook 2011 Economic  currently favourable economic environment situation  emerging markets as growth drivers  risks due to currencies and politics Risks  increasing commodity prices  increasing customer value by industry-specific solutions Customers  innovative product portfolio (e-commerce)

  36. Slide 36: Outlook 2011

    Outlook 2011 Kuehne + Nagel Market Seafreight  15%  5 – 7% (TEU) Airfreight  12%  5 – 7% (TON’s) Road & Rail Logistics  8%  4% (Net Invoiced TO) Contract Logistics  5%  3% (Net Invoiced TO) 2010 results March 1, 2011 Slide 36

  37. Slide 37: Upcoming Events 2011

    Upcoming Events 2011 1st quarter  18 April 2011 results Half-year  18 July 2011 results Capital Market  14 September 2011 / London Day Nine-months  17 October 2011 results 2010 results March 1, 2011 Slide 37

  38. Slide 38: Thank you for your attention.

    Thank you for your attention.

  39. Slide 39: 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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