Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — Q2 2023 Earnings Presentation
23 slides from Kuehne & Nagel International's earnings presentation, Jul 25, 2023
Slide 1: Analyst conference Half-year 2023 results
Analyst conference Half-year 2023 results Stefan Paul, CEO Markus Blanka-Graff, CFO Kuehne + Nagel International AG July 25, 2023
Slide 2: Half-year results: Highlights
Half-year results: Highlights Cost control measures accelerated amidst volume decline Growth Profit Cash ▪ Net turnover of CHF 12.7 billion ▪ EBIT of CHF 1,135 million vs. ▪ Free Cash Flow of CHF 497 million vs. CHF 20.6 billion in 2022 CHF 2,195 million in 2022 vs. CHF 1,711 million in 2022 38% dec
Slide 3: Sea Logistics
Sea Logistics Cost measures and mix effects support results TEU ‘000 GP/TEU in CHF EBIT/TEU in CHF ▪ Focus on continued long-term shift toward higher-yielding volumes 869 ▪ Intensified cost measures result in 527 764 695 443 13% year-over-year reduction in 615 1,114 1,135 1,089 1,107 563 349 cost pe
Slide 4: Air Logistics
Air Logistics Focus on cost management accelerated Tons ‘000 GP/100 kg in CHF EBIT/100 kg in CHF ▪ Accelerated cost reduction programs drove down cost per 100kg by 9% year-over-year in Q2 140 70 ▪ Volume decline in line with market 570 130 59 543 545 475 482 120 118 103 48 development 93 2014-2019 a
Slide 5: Road Logistics
Road Logistics Increased conversion rate In CHF million Q2 2023 Q2 2022 Variance YTD 2023 YTD 2022 Variance ▪ Stable volume development and high network utilisation Net turnover 917 1,051 (13%) 1,873 2,033 (8%) Gross profit 335 355 (6%) 684 684 - ▪ Gross profit increase of 5% excluding foreign excha
Slide 6: Contract Logistics
Contract Logistics Strong performance with record EBIT In CHF million Q2 2023 Q2 2022 Variance YTD 2023 YTD 2022 Variance ▪ Market share expansion in pharma and e-commerce Net turnover 1,210 1,232 (2%) 2,473 2,405 3% Gross profit 848 837 1% 1,719 1,659 4% ▪ Evidence of destocking in H1 2023 EBIT 48
Slide 7: Roadmap 2026 Update Q2 2023
Roadmap 2026 Update Q2 2023 ▪ Rolled out new e-commerce offerings in pilot markets First customers onboarded for new shared fulfilment centre, cross-border, and integrated last mile offerings tailored to SME customers ▪ Launched dedicated sales coverage for Japanese and Korean customers CEO and thre
Slide 8: Financial KPIs
Financial KPIs Analyst conference half-year 2023 results | © Kuehne+Nagel Group | 8
Slide 9: Income Statement Quarter over quarter comparison
Income Statement Quarter over quarter comparison 2022 2022 2022 2023 2023 2023 Variance YTD Variance in % ▪ Significant translation CHF million Acquisition/ Q1 Q2 YTD Q1 Q2 YTD 2023/2022 Q1 Q2 2023/2022 Growth disposal Forex 1 impact due to decline Net turnover 10,158 10,473 20,631 6,748 5,973 12,72
Slide 10: eTouch impact
eTouch impact ▪ Standardises workflow and activity sequencing Past workflow processes ▪ Centralises some tasks eTouch Branch ▪ Creates opportunities for Sequence 2 1+4 3 … further digitisation and automation Branch Sequence 1+3 4 2+5 …. ▪ Impact: expands Shared our front-line capacity to service han
Slide 11: eTouch progress: further automation expansion in H1 2023
eTouch progress: further automation expansion in H1 2023 ▪ Annualised staff-hour improvement in H1 centered in Documentation automation ▪ Run-rate staff-hour savings nearly 1.7m hours at mid-year or +10% vs. 2022 ▪ CR impact of 2.6pp vs. 2.0pp six months ago: greater efficiencies on a lower gross pr
Slide 12: Working Capital: Focus on DSO – DPO spread
Working Capital Focus on DSO – DPO spread June 30, December 31, June 30, Better/(worse) CHF million 2022 2022 2023 Dec 2022 vs. Jun 2023 Trade receivables/contract assets 7,490 6,027 4,472 1,555 Trade payables/accrued trade expenses/contract liabilities (5,621) (4,987) (3,731) (1,256) Net working ca
Slide 13: Cash and Free Cash Flow
Cash and Free Cash Flow Strong cash conversion YTD YTD CHF million Variance In CHF million 2022 2023 Cash and cash equivalents January 1, net 2,300 3,770 1,470 Cash flow from operating activities 2,041 827 (1,214) 3,751 FCF 2021 Cash flow from investing activities (88) (61) 27 FCF 2022 FCF 2023 Repa
Slide 14: Key takeaways
Key takeaways: 1. Solid Q2 2023 results 2. Cost control shows first results 3. Volume development as expected 4. Active yield and portfolio management continues 5. Roadmap 2026 initiatives underway Analyst conference half-year 2023 results | © Kuehne+Nagel Group | 14
Slide 15: Inspire. Empower. Deliver.
Inspire. Empower. Deliver. © 2023 Kuehne+Nagel. All rights reserved.
Slide 16: Upcoming events
Upcoming events 05.10. - 25.10.2023 Closed period 25.10.2023 Nine-months 2023 results 02.01. - 01.03.2024 Closed period 01.03.2024 Full-year 2023 results 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 23.07.2
Slide 17: Balance Sheet Building on the strong foundation
Balance Sheet Building on the strong foundation December 31, June 30, December 31, June 30, CHF million 2022 2023 2022 2023 Assets Equity and Liabilities Equity attributable to the equity holders 4,140 2,665 Property, plant and equipment 739 741 of the parent company Right-of-use assets 1,418 1,482
Slide 18: ROCE
ROCE 260% 259% 256% 251% 242% 194% 161% 125% 104% 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
Slide 19: 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 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Sea Logistics Income Statement Turnover 3,025 2,548 5,573 5,363 5,457 10,820 (43.6) (53.3) (48.5) (2,338) (2,909) (5,247) Net Turnover 2,667 2,192 4,8
Slide 20: 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 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Road Logistics Income Statement Turnover 1,101 1,054 2,155 1,124 1,196 2,320 (2.0) (11.9) (7.1) (23) (142) (165) Net Turnover 956 917 1,873 982
Slide 21: 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 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Kuehne+Nagel Group Income Statement Turnover 7,527 6,700 14,227 11,090 11,379 22,469 (32.1) (41.1) (36.7) (3,563) (4,679) (8,242) Customs duties and taxe
Slide 22: 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
Slide 23: 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 half-
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