Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — Q1 2020 Earnings Presentation
28 slides from Kuehne & Nagel International's earnings presentation, Apr 27, 2020
Slide 1: Analyst conference – First quarter 2020 results
Analyst conference – First quarter 2020 results Kuehne + Nagel International AG 27 April 2020 (CET 14.00) | Schindellegi, Switzerland
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
Slide 3: Kuehne + Nagel resilient in the face of crisis
Kuehne + Nagel resilient in the face of crisis Group earnings for the period at CHF 139 million; solid free cash flow of CHF 156 million1 EBIT in Sea Logistics of CHF 79 million; reduced volumes in February from and to China EBIT in Air Logistics of CHF 71 million; significantly reduced capacity and
Slide 4: Kuehne + Nagel Group – fast response to Covid-19
Kuehne + Nagel Group – fast response to Covid-19 Market in times of Covid-19 Kuehne + Nagel Worldwide trades down Operational in 1’400 locations in 108 countries Business in China started to recover in March 45’000 employees connected remotely Europe and Americas heavily impacted since Mar
Slide 5: Overview Group performance Q1 2020 (in CHF million)
Overview Group performance Q1 2020 (in CHF million) Net Turnover Gross Profit 5,237 CHF (325) m CHF (100) m 4,912 1,978 1,878 (6.2)% (5.1)% 2019 2020 2019 2020 EBIT Earnings per Share 242 CHF (58) m CHF (0.35) 184 1.50 1.15 (24.0)% (23.3)% 2019 2020 2019 2020 27.04.2020 | © Kuehne + Nagel | Analyst
Slide 6: Impact from Covid-19 on EBIT (in CHF million)
Impact from Covid-19 on EBIT (in CHF million) Sea Logistics Air Logistics 112 Covid-19 Covid-19 79 CHF (29) m 80 71 CHF (5) m FX FX CHF (4) m CHF (4) m 2019 2020 2019 2020 Road Logistics Contract Logistics Covid-19 Covid-19 CHF (3) m 26 CHF (9) m 24 17 17 FX FX CHF (1) m CHF (1) m 2019 2020 2019 202
Slide 7: Sea Logistics Air Logistics
Sea Logistics Air Logistics No. 1 worldwide No. 2 worldwide Reduced volumes from and to China in February 2020 Business continuity mitigates market decline Negative cargo mix due to lower SME volumes Beneficial cargo mix 27.04.2020 | © Kuehne + Nagel | Analyst Conference 7
Slide 8: Sea and Air Logistics – volumes decline, more so in Air
Sea and Air Logistics – volumes decline, more so in Air 700 1,400 650 1,300 1,279 1,246 1,210 1,230 600 1,171 1,146 1,190 1,200 550 1,079 1,075 1,100 500 TEUs '000 1,000 Tons '000 450 441 439 441 900 422 424 400 409 404 406 800 372 350 700 300 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019 2019
Slide 9: Sea Logistics – swift drop in demand hits unit profit
Sea Logistics – swift drop in demand hits unit profit 400 350 331 333 321 320 311 311 313 306 308 300 (241) (247) 250 (232) (236) (219) (222) (225) (217) (211) 200 GP/TEU in CHF 150 Exp/TEU in CHF EBIT/TEU in CHF 94 92 97 99 100 90 81 95 83 73 50 - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018 2018 2019
Slide 10: Air Logistics – unit performance supported by cargo mix
Air Logistics – unit performance supported by cargo mix 90 84 83 80 81 80 75 69 70 70 70 67 (64) (60) (61) (59) 60 (56)* (50) (51) (48) 50 (46) GP/100 kg in CHF Exp/100 kg in CHF 40 EBIT/100 kg in CHF * Excluding impairment 30 * of intangibles 23 23 22 19 20 19 20 19 * 19 20 10 - Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 11: Road Logistics
Road Logistics Solid volumes through early March 2020 Significantly reduced volumes in Europe and the USA as of March 2020 due to Covid-19 27.04.2020 | © Kuehne + Nagel | Analyst Conference 11
Slide 12: Road Logistics – trade collapsed in late Q1; acquisitions accretive
Road Logistics – trade collapsed in late Q1; acquisitions accretive Income statement YTD YTD Variance in CHF million 2019 2020 2020/2019 Growth1 Acquisition1 Forex1 Net turnover 901 863 (4.2%) (4.3%) 4.9% (4.8%) Gross profit 285 281 (1.4%) (2.6%) 6.1% (4.9%) EBITDA 36 32 (11.1%) (13.8%) 8.3% (5.6%)
Slide 13: Contract Logistics
Contract Logistics Automotive and industrial business down; e-commerce & pharma with growing demand 50% of portfolio linked to essential goods 27.04.2020 | © Kuehne + Nagel | Analyst Conference 13
Slide 14: Contract Logistics – weaker trading mitigated by cost cuts
Contract Logistics – weaker trading mitigated by cost cuts (excl. real estate transactions) Income statement YTD YTD Variance in CHF million 2019 2020 2020/2019 Growth2 Forex1 Net turnover 1,314 1,234 (6.1%) (1.2%) (4.9%) Gross profit 985 946 (4.0%) 1.1% (5.1%) EBITDA 170 177 4.1% 9.4% (5.3%) EBIT 2
Slide 15: Agreed-upon divestment of major part of the Contract Logistics business in the UK
Agreed-upon divestment of major part of the Contract Logistics business in the UK Binding agreement to sell a major part of the Contract Logistics portfolio in the UK to XPO Logistics Drinks logistics, food services and retail & technology businesses will be sold; the pharma & healthcare busines
Slide 16: Income Statement
Income Statement 2019 2020 Variance Variance in % CHF million Q1 Q1 2020/2019 2020/2019 Growth Acquisition Forex 1 Net turnover 5,237 4,912 (325) (6.2%) (2.1%) 0.9% (5.0%) Gross profit 1,978 1,878 (100) (5.1%) (1.0%) 0.9% (5.0%) Gross profit margin 37.8% 38.2% EBITDA 418 378 (40) (9.6%) (5.5%) 0.7%
Slide 17: Balance Sheet
Balance Sheet December 31, March 31, December 31, March 31, CHF million 2019 2020 2019 2020 Assets Liabilities and equity Equity attributable to the equity holders 2,316 2,325 Property, plant and equipment 1,089 983 of the parent company Right-of-use assets 1,899 1,649 Non-controlling interests 6 6
Slide 18: Cash Free cash flow
Cash Free cash flow Q1 Q1 CHF million Variance 2019 2020 Cash and cash equivalents January 1, net 488 904 416 Operational cash flow 419 380 (39) 1,138 2018 Changes in working capital (113) (208) (95) 2019 Income taxes paid (43) (66) (23) 2020 Cash flow from operating activities 263 106 (157) 474 Cas
Slide 19: Working Capital
Working Capital March 31, March 31, Better/(worse) CHF million 2019 2020 2020 vs. 2019 Trade receivables/Contract assets/Work in progress 4,298 3,711 587 Trade payables/Contract liabilities/Accrued trade expenses (3,157) (2,798) (359) Net working capital 1,141 913 228 KPIs: Working capital intensity
Slide 20: Return on capital employed (EBIT)
Return on capital employed (EBIT) ROCE ROCE excl. Acq./Assets held for sale 80% Mix effect: 75% Stronger growth in Contract 70% 67% Logistics leads to higher asset 66% 66% 65% allocation in proportion to Sea 65% 63% 61% and Airfreight 60% 60% 60% 62% 58% 60% Acquisition effect: 55% 57% Acquisiti
Slide 21: Financial targets
Financial targets YTD Q1 Targets KN Q1 KN Market 2020 2020 2020 CHF million 2020 2022 SEA LOGISTICS GROUP Volume growth (6.2)% Conversion rate 9.8% 16% AIR LOGISTICS ROCE (excl. acquisitions) 66% 70% Volume growth (9.0)% Effective tax rate 23.6% ~ 24% ROAD LOGISTICS Working capital intensity 3.9% 3.
Slide 22: Slide 22
Slide 23: Upcoming events 2020/2021
Upcoming events 2020/2021 AGM 05.05.2020 Annual General Meeting 07.-21.07.2020 Close period Q2 21.07.2020 Half-year 2020 results Q3 06.-20.10.2020 Close period 20.10.2020 Nine-months 2020 results Q4 04.01.-03.03.2021 Close period 03.03.2021 Full-year 2020 results 27.04.2020 | © Kuehne + Nagel | Anal
Slide 24: Quarter over Quarter 2020/2019
Quarter over Quarter 2020/2019 Change in Change in 2020 2019 CHF million % mCHF Q1 Q1 Q1 Q1 1. Sea Logistics A) Income Statement Turnover 2,235 2,437 (8.3) (202) Net Turnover 1,724 1,852 (6.9) (128) Gross Profit 344 382 (9.9) (38) Opex (258) (263) +1.9 5 EBITDA 86 119 (27.7) (33) Depreciation and Am
Slide 25: Quarter over Quarter 2020/2019
Quarter over Quarter 2020/2019 Change in Change in 2020 2019 CHF million % mCHF Q1 Q1 Q1 Q1 3. Road Logistics A) Income Statement Turnover 975 1,037 (6.0) (62) Net Turnover 863 901 (4.2) (38) Gross Profit 281 285 (1.4) (4) Opex (249) (249) - - EBITDA 32 36 (11.1) (4) Depreciation and Amortisation (1
Slide 26: Quarter over Quarter 2020/2019
Quarter over Quarter 2020/2019 Change in Change in 2020 2019 CHF million % mCHF Q1 Q1 Q1 Q1 5. Kuehne + Nagel Group A) Income Statement Turnover 5,860 6,323 (7.3) (463) Customs duties and taxes (948) (1,086) +12.7 138 Net Turnover 4,912 5,237 (6.2) (325) Net expenses for services from 3rd parties (3
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
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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