Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — H1 2020 Earnings Presentation

31 slides from Kuehne & Nagel International's earnings presentation, Jul 21, 2020

  1. Slide 1: Analyst conference Half-year 2020 results

    Analyst conference Half-year 2020 results Kuehne + Nagel International AG Schindellegi, Switzerland 21 July 2020 (CET 14.00)

  2. Slide 2: Overview half-year results 2020

    01 Overview half-year results 2020 2

  3. Slide 3: Kuehne+Nagel manages the crisis successfully

    Kuehne+Nagel manages the crisis successfully Net turnover Gross profit 9,808 CHF million HY 2019: 10,600 3,650 CHF million HY 2019: 4,015 7.5% decrease including negative fx 9.1% decrease on the previous year impact of 5.9% on the previous year EBIT EPS 419 CHF million HY 2019: 511 2.58 CHF HY 2019:

  4. Slide 4: Highlights half-year results 2020

    Highlights half-year results 2020  EBIT of CHF 167  EBIT of CHF 26 million million  Shifting cargo mix  Europe slowly recovering  Low volumes in Americas Sea Market Air in times Road Contract Group Logistics of Covid-19 Logistics Logistics Logistics  Group earnings for  EBIT of CHF 181  EBIT

  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 1,210 1,171 1,190 1,146 1,100 1,075 441 439 441 424 409 404 406 372 315 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020  Sea Logistics volumes HY 2020 down by 9.1% on previous year  Air Logistics volumes HY

  7. Slide 7: Sea Logistics

    Sea Logistics Cargo mix with lower SME volumes Volume gains in pharma, e-commerce and reefer Stable margin in constant currency 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) (217) (211) 94 92 97 99 95 81 83 73 80 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 HY 2020:  Gross profit at CHF 673 million, 13.9% be

  9. Slide 9: Air Logistics

    Air Logistics General cargo volume decline Demand for higher yielding crisis goods 9

  10. Slide 10: Air Logistics

    Air Logistics GP/100 kg in CHF Exp/100 kg in CHF EBIT/100 kg in CHF 106 84 81 83 80 75 69 70 70 (71) (61) (64) (60) (59) (56) (50) (51) (46) 35 23 20 19 20 23 22 19 * 19 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 * excl. impairment of intangibles HY 2020:  Gross profit

  11. Slide 11: Road Logistics

    Road Logistics Europe slowly recovering Volumes in Americas at a low level 11

  12. Slide 12: Road Logistics

    Road Logistics EBIT in CHF m EBIT/Net TO margin in % 24 21 19 19 17 16 17 14 2.7 2.1 2.3 9 2.1 2.0 2.0 1.8 1.6 1.2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 HY 2020:  Net turnover at CHF 1,584 million, 13.0% below HY 2019  EBIT at CHF 26 million, 42.2% below HY 2019 1

  13. Slide 13: Contract Logistics

    Contract Logistics High demand for essential goods (approx. 50% of contract portfolio) Strict cost management 13

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

    Contract Logistics (excl. real estate transactions) EBIT in CHF m EBIT/Net TO margin in % 34 33 32 29 25 25 27 26 2.5 16 2.4 2.3 2.4 2.4 1.9 1.8 2.0 1.3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 HY 2020:  Net turnover at CHF 2,378 million, 11.3% below HY 2019  In Q2 n

  15. Slide 15: Key financial figures half-year 2020

    03 Key financial figures half-year 2020 15

  16. Slide 16: Income Statement

    Income Statement 2019 2019 2019 2020 2020 2020 Variance Variance in % CHF million Q1 Q2 YTD Q1 Q2 YTD 2020/2019 Q1 Q2 2020/2019 Growth Acquisition Forex 1 Net turnover 5,237 5,363 10,600 4,912 4,896 9,808 (792) (325) (467) (7.5%) (2.3%) 0.7% (5.9%) Gross profit 1,978 2,037 4,015 1,878 1,772 3,650 (3

  17. Slide 17: eTouch: positioned to fully leverage AirLog

    eTouch: positioned to fully leverage AirLog  AirLog operating system (rolled out 2019): prerequisite for eTouch ambitions  “Bedding down” period complete, additional efficiencies beginning to emerge  Automation efforts: to date, traction in five of ten core process areas Workflow area Baseline Pr

  18. Slide 18: Balance Sheet

    Balance Sheet December 31, June 30, December 31, June 30, CHF million 2019 2020 2019 2020 Assets Liabilities and equity Equity attributable to the equity holders 2,316 2,475 Property, plant and equipment 1,089 978 of the parent company Right-of-use assets 1,899 1,596 Non-controlling interests 6 6 Go

  19. Slide 19: Cash / Free Cash Flow

    Cash / Free Cash Flow CHF million HY 2019 HY 2020 Variance In CHF million 1138 Cash and cash equivalents January 1, net 488 904 416 Operational cash flow 872 804 (68) FCF 2018 Changes in working capital (89) (141) (52) FCF 2019 Income taxes paid (114) (111) 3 FCF 2020 Cash flow from operating activi

  20. Slide 20: Working Capital

    Working Capital June 30, June 30, Better/(worse) CHF million 2019 2020 2020 vs. 2019 Trade receivables/Contract assets/Work in progress 4,127 3,716 411 Trade payables/Contract liabilities/Accrued trade expenses (3,094) (2,829) (265) Net working capital 1,033 887 146 KPIs: Working capital intensity 4

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

    Return on capital employed (ROCE) ROCE ROCE excl. Acq./Assets held for sale 80%  Covid-19 effect: 75% Sudden decrease of profitability 70% on similar asset base leads to 66% 67% 66% lower ROCE 65% 63% 62% 61% 60% 60% 60% 58%  Acquisition effect: 60% 55% 57% Acquisition impact of one year due to as

  22. Slide 22: Dividend proposal CHF 4.00 per share

    Dividend proposal CHF 4.00 per share The Board of Directors of Kuehne + Nagel International AG has decided to propose the distribution of a dividend of CHF 4.00 per share from the retained earnings 2019 to be approved by the shareholders in an extraordinary general meeting on September 2, 2020 22

  23. Slide 23: Financial targets

    Financial targets Volume Volume Net turnover Net turnover Group growth growth growth1 growth1 HY Targets 2020 2022 KN HY KN HY KN HY KN HY (9)% (15)% (8)% (6)% Conversion rate 11% 16% 2020 2020 2020 2020 ROCE (excl. acq.) 62% 70% Effective tax rate 25% 24 - 26% Market Market Market Market 2020 2020

  24. Slide 24: Thanks from the CEO

    “My thanks go to all colleagues for their extraordinary commitment.” Dr. Detlef Trefzger CEO Kuehne + Nagel International AG 24

  25. Slide 25: © 2020 Kuehne+Nagel All rights reserved

    © 2020 Kuehne+Nagel All rights reserved

  26. Slide 26: Upcoming events

    Upcoming events 06. – 20.10.2020 Closed period 20.10.2020 Nine-months 2020 results 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-

  27. Slide 27: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL 1. Sea Logistics A) Income Statement Turnover 2,235 2,095 4,330 2,437 2,453 4,890 (8.3) (14.6) (11.5) (202) (358) (560) Net Turnover 1,724 1,662 3,386 1,852 1,887 3,739 (6.

  28. Slide 28: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL 3. Road Logistics A) Income Statement Turnover 975 829 1,804 1,037 1,040 2,077 (6.0) (20.3) (13.1) (62) (211) (273) Net Turnover 863 721 1,584 901 919 1,820 (4.2) (21.5) (1

  29. Slide 29: Quarter over Quarter 2020/2019

    Quarter over Quarter 2020/2019 2020 2019 Change in % Change in mCHF CHF million Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL 5. Kuehne+Nagel Group A) Income Statement Turnover 5,860 5,713 11,573 6,323 6,404 12,727 (7.3) (10.8) (9.1) (463) (691) (1,154) Customs duties and taxes (948) (817) (1,765)

  30. Slide 30: 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 30

  31. Slide 31: 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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