Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — FY2023 Earnings Presentation

27 slides from Kuehne & Nagel International's earnings presentation, Mar 1, 2024

  1. Slide 1: Analyst conference Full-Year 2023 results

    Analyst conference Full-Year 2023 results Stefan Paul, CEO Markus Blanka-Graff, CFO Kuehne + Nagel International AG March 1, 2024

  2. Slide 2: Full-year results: Highlights

    Full-year results: Highlights Robust performance in 2023 Growth Profit Cash ▪ Net turnover of CHF 23.8 billion ▪ EBIT of CHF 1,903 million vs. ▪ Free Cash Flow of CHF 970 million vs. CHF 39.4 billion in 2022 CHF 3,763 million in 2022 (-49%) (-40%) ▪ Earnings per share of CHF 12.06 ▪ Cash and cash eq

  3. Slide 3: Sea Logistics: Organic volume growth improved in Q4

    Sea Logistics Organic volume growth improved in Q4 TEU ‘000 GP/TEU in CHF EBIT/TEU in CHF ▪ Continued long-term shift toward higher-yielding volumes driven by ongoing focus on SMEs 695 349 ▪ Market share growth throughout 615 285 1,107 1,138 1,106 563 266 2023 1,089 207 473 146* 428 987 127 ▪ One-of

  4. Slide 4: Air Logistics: Stabilising unit EBIT and rising volumes at year-end

    Air Logistics Stabilising unit EBIT and rising volumes at year-end Tons ‘000 GP/100 kg in CHF EBIT/100 kg in CHF ▪ Volume recovery into year-end driven by e-commerce and perishables 200 100 ▪ One-off cost of CHF 14 million in Q4 545 533 118 475 482 493 100 103 93 83 48 ▪ Cost per 100kg down > 20% ye

  5. Slide 5: Road Logistics: Headwinds in key markets during Q4 2023

    Road Logistics Headwinds in key markets during Q4 2023 In CHF million Q4 2023 Q4 2022 Variance FY 2023 FY 2022 Variance ▪ FY volume -6% year-over-year or broadly in line with market; Q4 Net turnover 834 981 (15%) 3,541 3,997 (11%) volume -9% Gross profit 301 324 (7%) 1,288 1,334 (3%) ▪ FY gross prof

  6. Slide 6: Contract Logistics: Continuous improvement with record-high EBIT

    Contract Logistics Continuous improvement with record-high EBIT In CHF million Q4 2023 Q4 2022 Variance FY 2023 FY 2022 Variance ▪ Market share expanding in healthcare and e-commerce Net turnover 1,150 1,302 (12%) 4,770 4,933 (3%) ▪ FY gross profit +7% excluding Gross profit 859 860 - 3,405 3,331 2%

  7. Slide 7: Roadmap 2026 Update Q4 2023

    Roadmap 2026 Update Q4 2023 ▪ Implemented Kuehne+Nagel Experience Conducted Group-wide baseline surveys for Customer and Employee Experience; strategic SME efforts yielding progress in Sea Logistics. ▪ Continuing to leverage AI across multiple areas Implemented AI in the areas of customer support, p

  8. Slide 8: Financial KPIs

    Financial KPIs Analyst conference full-year 2023 results | © Kuehne+Nagel Group | 8

  9. Slide 9: Income Statement: Quarter over quarter comparison

    Income Statement Quarter over quarter comparison Variance FY Variance in % 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 CHF million Acquisition/ Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2023/2022 Q1 Q2 Q3 Q4 2023/2022 Growth disposal Forex 1 Net turnover 10,158 10,473 9,972 8,795 39,398 6,748 5,973 5,438

  10. Slide 10: Working Capital: Focus on DSO – DPO spread

    Working Capital Focus on DSO – DPO spread December 31, December 31, Better/(worse) CHF million 2022 2023 Dec 2022 vs. Dec 2023 Trade receivables/contract assets 6,027 4,006 2,021 Trade payables/accrued trade expenses/contract liabilities (4,987) (3,238) (1,749) Net working capital 1,040 768 272 KPIs

  11. Slide 11: Cash and Free Cash Flow: Improvements throughout the quarters

    Cash and Free Cash Flow Improvements throughout the quarters FY FY In CHF million CHF million Variance 2022 2023 3,751 Cash and cash equivalents January 1, net 2,300 3,770 1,470 FCF 2021 FCF 2022 Cash flow from operating activities 4,404 1,699 (2,705) FCF 2023 Cash flow from investing activities (22

  12. Slide 12: Cash and Free Cash Flow: Focus on cash conversion

    Cash and Free Cash Flow Focus on cash conversion In CHF million FY 2020 FY 2021 FY 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 3,000 P&L tax, cumulative Cash tax, cumulative P&L tax (270) (790) (998) (166) (151) (134) (41) (492) P&L tax, cumulative (270) (1,060) (2,058) (2,224) (2,375) (2,509) (2,5

  13. Slide 13: Dividend proposal CHF 10.00 per share

    Dividend proposal CHF 10.00 per share 2019 2020 2021 2022 2023 Share price in CHF on 31.12. 163.20 200.80 294.40 215.20 289.80 Number of registered shares (in '000) 120,000 120,000 120,754 120,754 120,754 Market capitalisation in CHF million on 31.12. 19,584 24,096 35,550 25,986 34,995 Ordinary divi

  14. Slide 14: eTouch progress Sea Logistics

    eTouch progress Sea Logistics First-time report reflects significant improvement ▪ Automation success concentrated in customers bookings and status updates ▪ Run-rate staff-hour savings of a nearly 1.0m hours or +12% vs. H2 2022 ▪ CR impact of 1.0pp vs. 0.7pp at year-end 2022 Sea Logistics workflow

  15. Slide 15: Sea Logistics – customer portfolio development

    Sea Logistics – customer portfolio development FY 2019 FY 2022 FY 2023 GP GP per TEU GP GP per TEU GP GP per TEU TEU '000 TEU '000 TEU '000 in CHF million in CHF in CHF million in CHF in CHF million in CHF 4,861 1,539 317 4,386 3,479 793 4,338 2,320 535 13% GP GP 12% GP 18% TEU TEU TEU Commodity Com

  16. Slide 16: Air Logistics eTouch progress

    Air Logistics eTouch progress Conversion rate impact expands to 3.0 percentage points ▪ Annualised staff-hour improvement centered in Documentation automation ▪ Run-rate staff-hour savings of about 1.7m hours +11% year-on-year ▪ CR impact of 3.0pp vs. 2.0pp nine months ago: greater efficiencies + re

  17. Slide 17: Air Logistics – customer portfolio development

    Air Logistics – customer portfolio development FY 2019 FY 2022 FY 2023 GP GP per 100kg GP GP per 100kg GP GP per 100kg Tons '000 Tons '000 Tons '000 in CHF million in CHF in CHF million in CHF in CHF million in CHF 1,643 1,317 80 2,232 2,965 133 1,983 1,774 89 GP GP GP 18% 11% 30% Tons Tons Tons KN

  18. Slide 18: Key takeaways

    Key takeaways: 1. Challenging Q4 2023 2. Stable but uncertain volume development 3. Intensifying cost measures 4. Active yield and portfolio management continues 5. Confirm focus on Roadmap 2026 initiatives Analyst conference full-year 2023 results | © Kuehne+Nagel Group | 18

  19. Slide 19: Inspire. Empower. Deliver.

    Inspire. Empower. Deliver. © 2024 Kuehne+Nagel. All rights reserved.

  20. Slide 20: Upcoming events

    Upcoming events 03.04. - 23.04.2024 Closed period 23.04.2024 Three-months 2024 results 08.05.2024 Annual General Meeting 03.07. - 23.07.2024 Closed period 23.07.2024 Half-year 2024 results 03.10. - 23.10.2024 Closed period 23.10.2024 Nine-months 2024 results 02.01. - 04.03.2025 Closed period 04.03.2

  21. Slide 21: Balance Sheet

    Balance Sheet December 31, December 31, December 31, December 31, CHF million 2022 2023 2022 2023 Assets Equity and Liabilities Equity attributable to the equity holders 4,140 3,153 Property, plant and equipment 739 762 of the parent company Right-of-use assets 1,418 1,534 Non-controlling interests

  22. Slide 22: ROCE

    ROCE 259% 251% 260% 256% 242% 214% 194% 161% 164% 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, deferre

  23. Slide 23: Quarter-over-quarter 2023/2022 Sea and Air Logistics

    Quarter-over-quarter 2023/2022 Sea and Air Logistics 2023 2022 Change in % Change in mCHF CHF million Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Sea Logistics Income Statement Turnover 3,025 2,548 2,271 2,090 9,934 5,363 5,457 5,433 4,355 20,608 (43.6) (53.3) (58.2) (52.

  24. Slide 24: Quarter-over-quarter 2023/2022 Road and Contract Logistics

    Quarter-over-quarter 2023/2022 Road and Contract Logistics 2023 2022 Change in % Change in mCHF CHF million Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Road Logistics Income Statement Turnover 1,101 1,054 969 963 4,087 1,124 1,196 1,144 1,130 4,594 (2.0) (11.9) (15.3) (14

  25. Slide 25: Quarter-over-quarter 2023/2022 Kuehne+Nagel Group

    Quarter-over-quarter 2023/2022 Kuehne+Nagel Group 2023 2022 Change in % Change in mCHF CHF million Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL Kuehne+Nagel Group Income Statement Turnover 7,527 6,700 6,114 6,308 26,649 11,090 11,379 10,891 9,674 43,034 (32.1) (41.1) (43.9

  26. Slide 26: 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

  27. Slide 27: 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 full-

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