Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne+Nagel International — Investor Day (March 2025)
74 slides from Kuehne & Nagel International's investor day presentation, Mar 25, 2025
Slide 1: How we deliver – Capital Markets Day 2025
CMD 2025 How we deliver Capital Markets Day 2025 Dr. Joerg Wolle Chairman Kuehne+Nagel International AG March 25, 2025 | London, UK
Slide 2: We are at the life blood of global business
We are at the life blood of global business Kuehne+Nagel International AG | Capital Markets Day 2025 2
Slide 3: A rich legacy for 135 years
A rich How legacy Kuehne+Nagel developed over the past 15 years for 135 years 2010 2024 ▪ 57,000 employees ▪ 80,000+ employees ▪ EBIT of CHF 765 million ▪ EBIT of CHF 1,654 million ▪ Dominant in Germany, ▪ US and Asia biggest earning strong in Europe, contributors with aspirations in the US, ▪ Asia
Slide 4: Our winning formula
Our winning formula 1. Best management team in the industry 2. Special Kuehne+Nagel culture 3. Proven asset-light business model 4. Focus on organic growth with bolt-on M&A 5. Open for strategic partnerships 6. Strong focus on digitalisation 7. Speed in decision making and efficient execution Kuehne
Slide 5: Myths about logistics
Myths about logistics Huge acquisitions are the only Trade barriers are bad for our Bigger acquisitions always path to market leadership business lead to 1+1 > 2 Kuehne+Nagel International AG | Capital Markets Day 2025 5
Slide 6: We deliver …
We deliver … CMD 2025 ... growth at 1.5x global GDP … 80% dividend pay-out ratio … bolt-on acquisitions … a combined Sea and Air Logistics conversion rate of ~35% … an annual EBIT outlook Kuehne+Nagel International AG | Capital Markets Day 2025 6
Slide 7: Kuehne+Nagel: Connecting businesses across the globe
Kuehne+Nagel: Connecting businesses across the globe Kuehne+Nagel International AG | Capital Markets Day 2025 7
Slide 8: Strategy update
Strategy update Capital Markets Day 2025 Stefan Paul Chief Executive Officer Kuehne+Nagel International AG March 25, 2025 | London, UK
Slide 9: We have advanced far on many elements of our Roadmap 2026
We have advanced far on many elements of our Roadmap 2026 … Kuehne+Nagel Digital Living Capitalise on Experience Ecosystem ESG market potential Consistent high- Cloud technology is Tangible solutions We are building quality service improving our data are helping our competitive is increasing custo-
Slide 10: … but we made mixed progress versus targets
… but we made mixed progress versus targets and need to reset expectations 2026 financial targets as presented at CMD 2023 2024 Our market assumptions were too optimistic CAGR EBIT 2019 - 2026 17 - 19% 11% p.a. (2019-24) post-Covid ▪ Needed time to return Conversion rate Group 25 - 30% 19% to growth
Slide 11: Updated framework for our growth assumptions through 2030
Updated framework for our growth assumptions through 2030 Market growth Kuehne+Nagel assumptions 2024-2030 growth assumptions Sea Logistics In line with global GDP Volume growth 1.5x market Air Logistics In line with global GDP Volume growth 1.5x market Road Logistics In line with global GDP Net tur
Slide 12: How we create long-term shareholder value
How we create long-term shareholder value Diversified global business Resilient business model and Focus on sustainable portfolio financial management profitable growth ▪ Wide range of customers ▪ Asset-light ▪ Balance top-line and industries ▪ Strong balance sheet earnings growth ▪ Integrated busin
Slide 13: How we use M&A to complement organic growth
How we use M&A to complement organic growth Rationale ▪ Accelerate growth in existing markets and enter new attractive markets ▪ Acquire additional specialist know-how Prerequisites ▪ Operational and strategic value with broad fit to existing business ▪ Appropriate risk profile and valuation ▪ Conti
Slide 14: How we are addressing investor interest
How we are addressing investor interest Updated ▪ Growth 1.5x global GDP growth rate through 2030 growth aspiration ▪ Combined Sea and Air Logistics conversion rate ambition of ~35% Capital ▪ Investment priority in organic growth, plus bolt-on acquisitions allocation policy ▪ Targeted dividend payou
Slide 15: Core assumptions
Core assumptions Global long-term Supply chain Market Technological Supply chain economic growth complexity consolidation advances decarbonisation ▪ Upward trend ▪ Increasing due to ▪ Ongoing market ▪ Pace of innovation ▪ Global trend but despite short-term demand or supply consolidation will expect
Slide 16: Our focus is now on Market Potential
Our focus is now on Market Potential, enabled by the other Roadmap 2026 cornerstones Market Potential Kuehne+Nagel Experience Sales excellence and network expansion Customer satisfaction through consistent high-quality service Differentiated higher-margin service offering High-performance mindset Di
Slide 17: Sales excellence: Clear growth strategies by customer segment
Sales excellence: Clear growth strategies by customer segment Business unit focus Segment Accounts Strategy Sea Air Road CL1 Large global Retention, ~400 accounts grow share of wallet Organisational transformation has aligned sales Large national Win new profitable, channels and accounts > 5,000 hig
Slide 18: Differentiated higher-margin service offering
Differentiated higher-margin service offering: Market share growth with higher margin products Specialised end-to-end service offering for Value-added offering in addition industry-specific supply chain needs to core logistics services Patient-centric industry offering Value-added services attached
Slide 19: How the Kuehne+Nagel business units drive growth
How the Kuehne+Nagel business units drive growth Sea Logistics Robust, agile – and ready to accelerate Air Logistics Designed for growth Road Logistics The first and last link for true end-to-end solutions Contract Logistics Scaling up a successful model Kuehne+Nagel International AG | Capital Ma
Slide 20: We deliver. Key takeaways
We deliver. CMD 2025 Key takeaways 1. Strategy confirmed with reset of growth ambitions 2. Growth at 1.5x global GDP growth rate through 2030 3. Conversion rate ambition for Sea / Air Logistics ~35% through 2030 4. Organic growth with selected bolt-on acquisitions 5. Dividend payout of 80% 6. Adopti
Slide 21: Financial overview
Financial overview Capital Markets Day 2025 Markus Blanka-Graff Chief Financial Officer Kuehne + Nagel International AG March 25, 2025 | London, UK
Slide 22: Financial policy: continued investment into growth with shareholder returns
Financial policy: Continued investment into growth with strong commitment to shareholder returns Earnings growth Shareholder returns Organic growth Regular dividend ▪ Focus resources into sales ▪ Cash distributions as a core element of ▪ Efficient capital allocation total returns to support consiste
Slide 23: Recap of eTouch effects – Air Logistics
Recap of eTouch effects – Air Logistics Fully integrated into day-to-day operations ▪ Progress centered in the area of transport documentation ▪ Annualized run-rate staff-hour savings of about 1.8m hours or +10% vs. 2023 ▪ CR impact of 370 bps vs. 300 bps six months ago; attained 2026 target (CHF 3/
Slide 24: Recap of eTouch effects – Sea Logistics
Recap of eTouch effects – Sea Logistics Fully integrated into day-to-day operations ▪ Progress in Customer quotation, booking and status as well as Documentation ▪ Run-rate staff-hour savings +7% vs. year-end 2023; staff-hour cost inflation +8% ▪ CR impact of 130 bps vs. 100 bps at year-end 2023 Sea
Slide 25: Sea Logistics growth vs. GDP development
Sea Logistics growth vs. GDP development ▪ Sea freight market and 20% GDP Market KN (TEU) GDP growth at different speed through the cycles 10% ▪ Focus on yield 0% optimisation has led to lower growth in absolute -10% terms in recent years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 26: Cash Flow Generation
Cash Flow Generation Key factors impacting Group 150% Free Cash Flow conversion: 100% 96% FCF conversion ▪ Working capital level centered in Apex seasonality 50% ▪ Free cash flow conversion of 94% in Q4 2024 back in 0% 2019 2020 2021 2022 2023 2024 Aggregate normal range Seasonality impact on FCF co
Slide 27: Working Capital Development
Working Capital Development ▪ Change in business mix with 80 74 DSO DPO Working capital intensity* higher exposure to Sea & Air 70 67 65 65 64 60 61 59 ▪ Days of sales outstanding 60 53 51 53 51 53 56 54 53 57 49 (DSO) remains stable 50 4.3% 4.4% Days 40 4.1% 4.0% ▪ Highly dependent on level 3.8% 3.
Slide 28: ROCE Development
ROCE Development ▪ Recurring ROCE at around ROCE excl. M&A/divestments Contract Logistics ROCE excl. forest, M&A/divestments 121% 80% supported by current Linear (ROCE excl. M&A/divestments) business mix Excl. extraordinary pandemic impact ▪ Sea and Air Logistics 95% approx. 100% 86% 82% 76% ▪ Conti
Slide 29: Capital allocation policy
Capital allocation policy Capital structure objectives ▪ Sufficient flexibility to meet 2,800 Dividend Capex M&A Purchase of treasury shares strategic objectives 2,400 716 ▪ A robust financial structure to maximise return for investors 2,000 69 CHF million 646 310 51 1,600 236 Capital allocation pol
Slide 30: Attractive shareholder returns through dividends
Attractive shareholder returns through dividends and total return since December 2019 100 Ordinary Extraordinary Payout ratio Shares Dividends 97% 80 94% 93% 88% 84% 83% Basis CHF Dividend (CHF/share) 76% 74% 76% 76% 60 69% Payout Ratio 63% 63% 59% 40 1.75 14.00 20 3.00 10.00 2.00 8.25 8.25 0 5.50 5
Slide 31: 2030 medium-term financial targets
2030 medium-term financial targets Medium-term Main assumptions Kuehne+Nagel Group 2030 ▪ Market demand growth at Business unit conversion ratios ~1x GDP growth Sea & Air Logistics ~ 35% ▪ We expect to gain market share in all business units Road Logistics stable ▪ Targets are based on organic growt
Slide 32: Outlook 2025
Outlook 2025 Outlook Actual CHF million 2025 2024 EBIT (recurring) 1,500 to 1,750 1,671 Effective tax rate ~ 25% 24.9% Main assumptions ▪ Economic growth with high uncertainty related to the global development ▪ A reduction of supply chain disruptions would lead to a gradual decline in gross profit
Slide 33: We deliver. Key takeaways
We deliver. Key takeaways 1. Outlook 2025: recurring EBIT of CHF 1,500 to 1,750 million 2. Medium-term conversion rate (CR) targets of a. ~35% combined CR for Sea & Air Logistics b. Stable CR for Road Logistics c. Stable CR for Contract Logistics 3. Investments in organic growth complemented by sele
Slide 34: Sea Logistics
Sea Logistics Robust, agile – and ready to accelerate Michael Aldwell Executive Vice President Sea Logistics Kuehne + Nagel International AG March 25, 2025 | London, UK
Slide 35: Strong foundation for accelerated growth
Strong foundation for accelerated growth Volume Mix Yield Cost Conversion Performance Actions successful On track Solid progress Exceeded target improving Deselected 6% of volume Reflects mix efforts and Productivity gains & post Strong performance, Market share market conditions pandemic cost out a
Slide 36: Market uncertainty and volatility persist
Market uncertainty and volatility persist The Sea Logistics sector is anticipated to grow by 3.0-3.5% from 2025 to 2030 ▪ Supply chains continue to become more complex and fragmented, driving demand for logistics services ▪ Capacity continues to increase, along with persistent congestion and disrupt
Slide 37: Scale and speed are advantages in disrupted markets
Scale and speed are advantages in disrupted markets Operating capacity impacted by disruptive events Kuehne+Nagel International AG | Capital Markets Day 2025 Source: Linerlytica and Kuehne + Nagel market intelligence 39
Slide 38: We are #1 and will maintain our position
We are #1 and will maintain our position Kuehne+Nagel International AG | Capital Markets Day 2025 40
Slide 39: We are ready to accelerate growth
We are ready to accelerate growth 1. Customer proximity and 2. Intensive focus on anchor 3. Stronger differentiated value network expansion markets and verticals proposition in landside logistics Kuehne+Nagel International AG | Capital Markets Day 2025 41
Slide 40: Customer proximity and network expansion
1. Customer proximity and network expansion We are gaining SME share ▪ SME share at 49% & growing ▪ Stronger customer proximity • 41 new offices open • 20+ more planned ▪ Ongoing investments in SME sales ▪ Deploying enhanced CRM capabilities Kuehne+Nagel International AG | Capital Markets Day 2025 4
Slide 41: Intensified focus on anchor markets and verticals
2. Intensified focus on anchor markets and verticals Long-term tailwinds and volatility in: ▪ Trans Atlantic trades ▪ Asia outbound trades to: • Europe • America • Oceania Intensive dedication to established verticals: ▪ Healthcare ▪ Project Logistics ▪ Industrial & Renewables ▪ Consumer & Hi-Tech
Slide 42: Stronger differentiated value proposition in Landside Logistics
3. Stronger differentiated value proposition in Landside Logistics Kuehne+Nagel International AG | Capital Markets Day 2025 44
Slide 43: The IMC capability drives differentiation
The IMC capability drives differentiation Creating new revenue streams & solving landside logistics performance issues Scale matters #1 marine drayage provider in the world’s largest market. Highest cost market with longest distances Industry-leading tech Fully integrated, proprietary operating syst
Slide 44: Takeaways: Robust, agile – and ready to accelerate
We deliver. CMD 2025 Takeaways: Robust, agile – and ready to accelerate Focus on absolute Market share expansion Strengthening EBIT growth 1.5x market growth value proposition ▪ Quality volumes & pricing ▪ Largest network, serving ▪ Become market maker discipline SMEs and large customers on all foc
Slide 45: Air Logistics
Air Logistics Designed for growth Yngve Ruud Executive Vice President Air Logistics Kuehne + Nagel International AG March 25, 2025 | London, UK
Slide 46: We deliver strong, consistent growth amid market disruptions
We deliver strong, consistent growth amid market disruptions Yield and conversion rate Volume EBIT Sustainable Yield Level Increased Market Share 6.1% EBIT CAGR since 2016 Ongoing focus on yield-driven margin Targeted investments have resulted in Profit growth aligns with volume optimisation and car
Slide 47: Growth opportunities emerging as demand outstrips capacity
Growth opportunities emerging as demand outstrips capacity The airfreight sector is anticipated to grow by 3.0% from 2025 to 2028 * ▪ Volatility from trade dynamics, geopolitical tensions, and supply chain imbalances will continue to drive demand over the long term ▪ Demand will exceed capacity in s
Slide 48: We aim to keep our #1 position
We aim to keep our #1 position in the mid to long- term Kuehne+Nagel International AG | Capital Markets Day 2025 51
Slide 49: Designed for growth
Designed for growth 1. Clear industry focus 2. Network and gateways 3. People and Technology We're investing in solutions for Our scalable, asset-light Our commercial organisation growing sectors: Aerospace, network and gateway model develops global and local Semiconductors, Server & Data enables us
Slide 50: Clear focus on growth industries and verticals
1. Clear focus on growth industries and verticals Expand established positions ▪ Enhance market leadership in Aerospace, Healthcare, and Perishables ▪ Increase presence in High Tech and Semiconductors Launch new solutions ▪ We are introducing new solutions in Aerospace, Healthcare, and Semiconductor
Slide 51: Targeted acquisition strategy pays off
Targeted acquisition strategy pays off Entrepreneurial value creation ▪ Apex, a unique partnership with Partners Group and Apex Management, combines operational excellence and private equity experience Dual brand strategy ▪ Multiplies topline synergies and creates differentiated go-to-market opportu
Slide 52: Network and gateway expansion
2. Network and gateway expansion We adapt quickly to shifting market conditions, geopolitical changes, and customer requirements: ▪ 30 global gateways (with 90+ origins) coordinate about 100 charter connections and over 35,000 tons of commercial capacity weekly ▪ Support for growth industries and ve
Slide 53: Strategic gateway expansion enables future growth
Strategic gateway expansion enables future growth Advantages: ▪ Balancing commercial and charter capacity ▪ Proximity to markets ▪ Cross-border orientation ▪ Use of all available (belly) options ▪ Proprietary gateway software Kuehne+Nagel International AG | Capital Markets Day 2025 56
Slide 54: Controlled charter network – 2019
Controlled charter network – 2019 13 weekly charter connections in pre- pandemic environment Capabilities: ▪ Transatlantic ▪ Transpacific ▪ Perishables ▪ Ad hoc Charters Kuehne+Nagel International AG | Capital Markets Day 2025 57
Slide 55: Controlled charter network – 2025
Controlled charter network – 2025 100 weekly charter connections across the globe Capabilities: ▪ Transatlantic ▪ Transpacific ▪ Perishables ▪ Network Flexibility ▪ Intra Asia (rebalancing) ▪ LATAM + MX ▪ Ad hoc Charters Kuehne+Nagel International AG | Capital Markets Day 2025 58
Slide 56: People and Technology
3. People and Technology People Technology Strategy ▪ Appropriately sized, ▪ Support data-driven ▪ New commercial commercially-oriented decision-making and strategy with focus on organisation align operations for trade development ▪ Empowered and better cost-efficiency and network expansion nimble d
Slide 57: Takeaways: Designed for growth
We deliver. CMD 2025 Takeaways: Designed for growth. Investing in solutions for Expanding a global Empowering an agile growth industries adaptable asset-light network commercial organisation Aerospace, Semiconductors, Our scalable network and Focus on trade development Server and Data Centers, gatew
Slide 58: Road Logistics
Road Logistics The first and last link for true end-to-end solutions Hansjörg Rodi Executive Vice President Road Logistics Kuehne + Nagel International AG March 25, 2025 | London, UK
Slide 59: Despite challenging markets, we remained focused on our strategy
Despite challenging markets, we remained focused on our strategy and achieved key milestones Growth Technology Solutions Expansion Customs Growth ambitions Significant Visibility and Cross-border Growing not achieved progress in our sustainability corridors in capabilities and ▪ Headwinds in our dig
Slide 60: Road Logistics is local: market conditions vary across regions
Road Logistics is local: Market conditions vary greatly across regions Headwinds and flat demand in More growth opportunities in Europe and North America MEA, Asia Pacific and Customs ▪ Shrinking trucking capacity in Europe ▪ Growing demand for cross-border corridor ▪ High cost pressures due to infl
Slide 61: Managing market dynamics is the prerequisite for future growth
Managing market dynamics is the prerequisite for future growth 1. Sharpen pricing strategy 2. Secure carrier capacity 3. Manage costs with discipline ▪ Increase general rate on ▪ Road Carrier Solution (RCS) ▪ Reduce IT costs by continuing contractual business simplifies collaboration for TMS consoli
Slide 62: The first and last link for true end-to-end solutions
We see high growth potential in Global Accounts ... … because almost every shipment starts and ends on wheels The first and last link for true Kuehne+Nagel end-to-end solutions Kuehne+Nagel International AG | Capital Markets Day 2025 67
Slide 63: Road Logistics as a key differentiator for Global Accounts
Road Logistics as a key differentiator for Global Accounts Access to Global Standard Less-than- Full- Digital Accounts differentiates Groupage truckload truckload myKN forwarding services Kuehne+Nagel, Groupage network because US-MX cross-border and LTL Healthcare capabilities supporting network in
Slide 64: Accelerate growth in Customs Brokerage
Accelerate growth in Customs Brokerage ▪ Farrow closed the gap in competence and capabilities Customs brokerage Future world at the borders of the US, market 2020 of trade Mexico and Canada 2015/16 Pandemic 2000 Trade wars, ▪ Investments in business AEO, CTPAT, BREXIT 1990 development resources NAFT
Slide 65: Takeaways: The first and last link
We deliver. CMD 2025 Takeaways: The first and last link for true end-to-end solutions Technological foundation Differentiation The first and last link to manage market dynamics in visibility, sustainability, for true Kuehne+Nagel with agility tailored solutions, and global end-to-end solutions pre
Slide 66: Contract Logistics
Contract Logistics Scaling up a successful model Gianfranco Sgro Executive Vice President Contract Logistics Kuehne + Nagel International AG March 25, 2025 | London, UK
Slide 67: Healthy growth in key metrics
Healthy growth in key metrics with relentless focus on customers, people and solutions Turnover EBIT Contract tenure Portfolio Over-the-market Active yield Long-term customer Mix growth management commitments enhancement 7% revenue growth (ex. FX) 13 % EBIT CAGR since Contract tenure now at 6 years
Slide 68: Building on a strong competitive position in an attractive market
Building on a strong competitive position in an attractive market ▪ Steady annual growth slightly above GDP with low volatility ▪ C-level customer engagement ▪ Increasingly high entry barriers ▪ High fragmentation (top 10 competitors have less than 20% share) Kuehne+Nagel International AG | Capital
Slide 69: Successful business model has a low-risk profile
Kuehne+Nagel’s successful business model has a low-risk profile Key pillars to future-proof our model: ▪ New contract pricing and seamless implementation ▪ Sophisticated engineering to manage continuous improvement, constant innovation, and operational excellence ▪ Mastering Service Agreements (cape
Slide 70: Three factors help us grow faster than GDP
Three factors help us grow faster than GDP 1. Customer segmentation 2. Markets and verticals 3. Technological edge (who) (what/where) (how) ▪ Increase share of wallet with ▪ Accelerate growth in selected ▪ Increase entry barriers blue chip companies strategic domestic markets ▪ Improve productivity
Slide 71: Customer segmentation: leverage top-tier customers
1. Customer segmentation: Leverage top-tier customers while strategically targeting mid-sized leaders Company Size L-XL: DNA of contract logistics ▪ Innovative digital engagement to increase share of wallet through cross-sell and up-sell ▪ Back-to-back agreements ▪ Lower risk: Loyalty above 95% Comp
Slide 72: Markets and Verticals: focus on strategic markets
2. Markets and Verticals: Focus on strategic markets and verticalisation First to serve (patient-centric example) ▪ Expand GxP network and innovative data-driven solutions ▪ i.e. support the anti-obesity production boom two years before the commercial launch (sales growth x5) ▪ Bolt-on acquisition ▪
Slide 73: Technological edge: implementing AI and advanced automation
3. Technological edge: Implementing AI and advanced automation boosts productivity and scales solutions Demand for automation is high ▪ More than 70% of new customer engagements require automated solutions ▪ First major digital retrofitting projects underway (30-50% labor reduction) We are positione
Slide 74: Takeaways: Scaling up a successful business model
We deliver. CMD 2025 Takeaways: Scaling up a successful business model Growing with financial Capability Future discipline and low risk building proofing ▪ Market share expansion with ▪ Commercial and operational ▪ Long-term strategic GDP+ growth rate 2025/26 agenda fully customer relationships ▪ S
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