Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — Q1 2019 Earnings Presentation

28 slides from Kuehne & Nagel International's earnings presentation, Apr 25, 2019

  1. Slide 1: Analyst conference – First quarter 2019 results

    Analyst conference – First quarter 2019 results Kuehne + Nagel International AG 25 April 2019 (CET 14.00) | Schindellegi, Switzerland

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation contains forward-looking statements. Such statements are subject to risks and uncertainties as various factors, many of which are beyond the control of Kuehne + Nagel International AG, may cause actual development and results to differ materially from the

  3. Slide 3: Kuehne + Nagel continues to grow

    Kuehne + Nagel continues to grow Group earnings at CHF 181 million in Q1 2019 Strong EBIT in Seafreight of CHF 112 million, CHF 15 million above Q1 2018 Stable EBIT in Airfreight of CHF 80 million, CHF 1 million below the record year 2018 Net turnover growth in Overland of 6.0% and strong operationa

  4. Slide 4: Overview Group performance Q1 2019

    Overview Group performance Q1 2019 Gross Profit 1,978 Net Turnover 5,237 1,843 + CHF 135 m 4,862 + CHF 375 m + 7.7% + 7.3% 2018 2019 2018 2019 EBIT Earnings per Share 236 242 + CHF 6 m 1.53 1.50 CHF (0.03) + 2.5% (2.0)% 2018 2019 2018 2019 25.04.2019 | © Kuehne + Nagel | Analyst Conference 4

  5. Slide 5: Seafreight Airfreight

    Seafreight Airfreight No. 1 worldwide No. 2 worldwide Significant business wins with Integration of Quick acquisition digital platforms supports margin improvement Strong volume growth paired with Success with new industry solutions operational leverage 25.04.2019 | © Kuehne + Nagel | Analyst Conf

  6. Slide 6: Seafreight and Airfreight – volume development

    Seafreight and Airfreight – volume development 1,300 700 1,210 1,230 650 1,200 1,171 1,146 1,118 1,120 600 1,089 1,079 1,100 550 1,028 1,000 500 TEUs '000 Tons '000 450 900 448 441 439 441 422 400 409 800 381 391 350 350 700 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019

  7. Slide 7: Seafreight – improved yield and active cost management

    Seafreight – improved yield and active cost management 400 350 328 327 331 333 321 324 311 311 313 300 (237) (241) (236) 250 (225) (229) (229) (232) (217) (219) 200 GP/TEU in CHF Exp/TEU in CHF 150 EBIT/TEU in CHF 91 96 98 95 97 100 90 94 92 81 50 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 201

  8. Slide 8: Airfreight – yield improvement partly through Quick

    Airfreight – yield improvement partly through Quick 90 80 80 70 70 75 excl. Quick 69 69 70 66 67 65 64 (60) 60 (50) (51) (54) excl. Quick (48) (48) 50 (46) (46) (45) (46) GP/100 kg in CHF Exp/100 kg in CHF 40 EBIT/100 kg in CHF 30 23 21 excl. Quick intangible 21 20 19 19 19 20 19 20 amort. 20 10 - Q

  9. Slide 9: Impact of Quick acquisition

    Impact of Quick acquisition  A global market leader in time-critical shipments  High-growth verticals in the business unit Airfreight:  Aerospace - Sterling  Healthcare & Pharma - Quick STAT  Integration ongoing as planned  Cross-selling on track  Business case confirmed  Impact on Q1 2019 r

  10. Slide 10: Overland

    Overland Strong performance of US intermodal business Strong operational improvement matching Q1 2018 level, which included a material one-off gain 25.04.2019 | © Kuehne + Nagel | Analyst Conference 10

  11. Slide 11: Overland – outstanding performance

    Overland – outstanding performance Income statement Q1 Q1 Variance in CHF million 2018 2019 2019/2018 Growth Forex1 Net turnover 850 901 6.0% 7.9% (1.9%) Gross profit 264 285 8.0% 10.3% (2.3%) EBITDA2 33 36 9.1% 9.1% - EBIT2 24 24 - - - EBITDA / Net turnover margin 3.9% 4.0% EBIT / Net turnover marg

  12. Slide 12: Contract Logistics

    Contract Logistics Focus on consolidation of contract portfolio and cost management Rollout of new WMS-solution and warehousing technology ongoing 25.04.2019 | © Kuehne + Nagel | Analyst Conference 12

  13. Slide 13: Contract Logistics – reshaping the business

    Contract Logistics – reshaping the business Income statement Q1 Q1 Variance in CHF million 2018 2019 2019/2018 Growth Acquisition Forex1 Net turnover 1,236 1,314 6.3% 6.7% 2.0% (2.4%) Gross profit 939 985 4.9% 6.8% 0.9% (2.8%) EBITDA 66 170 157.6% 159.1% 3.0% (4.5%) EBIT 34 26 (23.5%) (26.4%) 2.9% -

  14. Slide 14: Income Statement

    Income Statement 2018 2019 Variance Variance in % CHF million Q1 Q1 2019/2018 2019/2018 Growth Acquisition Forex 1 Net turnover 4,862 5,237 375 7.7% 7.9% 1.9% (2.1%) Gross profit 1,843 1,978 135 7.3% 8.0% 1.7% (2.4%) Gross profit margin 37.9% 37.8% EBITDA 289 418 129 44.6% 44.6% 2.4% (2.4%) EBITDA m

  15. Slide 15: Balance Sheet

    Balance Sheet December 31, March 31, December 31, March 31, CHF million 2018 2019 2018 2019 Assets Liabilities and equity Equity attributable to the equity holders 2,318 2,471 Property, plant and equipment 1,226 1,239 of the parent company Right-of-use leased assets - 1,765 Non-controlling interests

  16. Slide 16: Impact IFRS 16 effective 1.1.2019

    Impact IFRS 16 effective 1.1.2019 December 31, March 31, Q1 2019 CHF million CHF million 2018 2019 impact Income Statement - Balance Sheet impact Q1 2019 Right-of-use assets* - 1,765 Selling, general and admin expenses - 118 Deferred tax assets 175 179 EBITDA + 118 Lease liabilities 4 1,769 Deprecia

  17. Slide 17: Cash and cash equivalents

    Cash and cash equivalents March 31, March 31, CHF million Variance 2018 2019 Cash and cash equivalents January 1st, net 710 488 (222) Operational cash flow 276 419 143 Changes in working capital (199) (113) 86 Main variances 2019 vs. 2018 Income taxes paid (44) (43) 1  Lower cash opening balance CH

  18. Slide 18: Free Cash Flow development (YTD in CHF million)

    Free Cash Flow development (YTD in CHF million) 700 635 Like-for-like comparison: 2018 2019 excl. IFRS 16 500 416 475  Operational CF CHF 276m CHF 301m 2017  CF from op. act. CHF 33m CHF 144m 300  CF from inv. act. CHF (34)m CHF (20)m 2018 180 255 140 2019  CF from fin. act. CHF (11)m CHF 3m 100

  19. Slide 19: Working Capital

    Working Capital March 31, March 31, Better/(worse) CHF million 2018 2019 2019 vs. 2018 Trade receivables/Contract assets/Work in progress 3,986 4,298 (312) Trade payables/Contract liabilities/Accrued trade expenses (3,011) (3,157) 146 Net working capital 975 1,141 (166) KPIs: Working capital intensi

  20. Slide 20: Return on capital employed (EBIT)

    Return on capital employed (EBIT) ROCE ROCE excl. acquisitions 80%  IFRS 16 impact 1.1.2019: + 1% 75% 70% 69% 67%  Mix effect: 67% 66% 65% 68% 63% Stronger growth in Contract 65% 67% 66% 60% 60% Logistics leads to higher asset 64% 60% 62% 58% allocation in proportion to Sea 60% and Airfreight. 55%

  21. Slide 21: Financial targets

    Financial targets Q1 Targets KN Market CHF million 2019 2022 FY 2019 FY 2019 GROUP SEAFREIGHT Conversion rate 12% 16% Volume growth > 5% +/- 2% ROCE (excl. acquisitions) 60% 70% AIRFREIGHT Effective tax rate 23% 23 - 24% Volume growth > 0% +/- 0% Working capital intensity 4.5% 3.5 - 4.5% Cash and ca

  22. Slide 22: Slide 22

  23. Slide 23: Upcoming events 2019

    Upcoming events 2019 AGM 07.05.19 Annual General Meeting 09.-23.07.2019 Closed period Q2 23.07.19 Half-year 2019 results 08.-22.10.2019 Closed period Q3 22.10.19 Nine-months 2019 results 02.01.-27.02.2020 Closed period Q4 27.02.20 Full-year 2019 results 25.04.2019 | © Kuehne + Nagel | Analyst Confer

  24. Slide 24: Quarter over Quarter 2019/2018

    Quarter over Quarter 2019/2018 2018 2019* 2019 2018 Change in Change in CHF million % mCHF Q4 Q1 Q1 Q1 Q1 Q1 1. Seafreight A) Income Statement Turnover 2,498 2,437 2,437 2,170 +12.3 267 Net Turnover 1,879 1,852 1,852 1,635 +13.3 217 Gross Profit 366 382 382 357 +7.0 25 Opex (266) (264) (263) (255) (

  25. Slide 25: Quarter over Quarter 2019/2018

    Quarter over Quarter 2019/2018 2018 2019* 2019 2018 Change in Change in CHF million % mCHF Q4 Q1 Q1 Q1 Q1 Q1 3. Overland A) Income Statement Turnover 1,031 1,037 1,037 936 +10.8 101 Net Turnover 896 901 901 850 +6.0 51 Gross Profit 275 285 285 264 +8.0 21 Opex (245) (252) (249) (231) (7.8) (18) EBIT

  26. Slide 26: Quarter over Quarter 2019/2018

    Quarter over Quarter 2019/2018 2018 2019* 2019 2018 Change in Change in CHF million % mCHF Q4 Q1 Q1 Q1 Q1 Q1 5. Kuehne + Nagel Group A) Income Statement Turnover 6,538 6,323 6,323 5,795 +9.1 528 Customs duties and taxes (1,125) (1,086) (1,086) (933) (16.4) (153) Net Turnover 5,413 5,237 5,237 4,862

  27. Slide 27: Kuehne + Nagel International AG

    Kuehne + Nagel International AG Dorfstrasse 50 | 8834 Schindellegi | Switzerland | Telephone +41 (0)44 786 95 11 | www.kuehne-nagel.com

  28. Slide 28: Contact

    Contact Markus Blanka-Graff Christopher Combé Andrea Kobi CFO Head of Investor Relations Investor Relations markus.blanka@kuehne-nagel.com christopher.combe@kuehne-nagel.com andrea.kobi@kuehne-nagel.com Tel: +41 (0)44 7869 644 Tel: +41 (0)44 7869 693 Tel: +41 (0)44 7869 561 Disclaimer Investing in t

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