Kuehne & Nagel International Ag · SIX:KNIN
Kuehne & Nagel International — Kuehne + Nagel International — FY2012 Earnings Presentation
41 slides from Kuehne & Nagel International's earnings presentation, Mar 4, 2013
Slide 1: Analyst Conference Call – Full-year Results 2012
Kuehne + Nagel International AG Analyst Conference Call – Full-year Results 2012 March 4, 2013 (CET 14.00) Schindellegi, Switzerland
Slide 2: Agenda
Agenda Highlights 2012 | Gerard van Kesteren Operating Review 2012 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2013 | Reinhard Lange Kuehne + Nagel Group – Full-year Results 2012 March 4, 2013 p. 2
Slide 3: Highlights 2012
Highlights 2012 Volume development per business unit Key figures 10% ● Volume growth intact in all Kuehne + Nagel business units 8% Market 7% 6% ● Increased net invoiced 6% turnover by 6% 4% 4% ● Increase of Gross Profit 2% 2% by 3% 2% 0% 0% ● Working Capital intensity 0% at 3.2% in December 2012 -2
Slide 4: Increased turnover in all business units; cost increases and margin pressure impact results
Increased turnover in all business units Cost increases and margin pressure impact results Invoiced turnover – in CHF million EBITDA – in CHF million 978 20,753 22'000 921* 1'000 19,596 -5.3% 20'000 +8.8% 900 18'000 800 9,059 438 16'000 415 8,330 700 14'000 Seafreight 600 12'000 Airfreight +1.1% -9.
Slide 5: Despite margin pressure increased Gross Profit in all business units
Despite margin pressure increased Gross Profit in all business units Gross Profit – in CHF million Key figures in Sea- & Airfreight 6,094 Gross Profit/TEU in CHF 6'500 5,898 -4% 6'000 +1.7% 383 367 5'500 1,275 1,254 5'000 TEU ‘000 +5.3% +6% 4'500 3,473 837 3,274 795 Seafreight 4'000 +3.5% Airfreight
Slide 6: Income Statement
Income Statement CHF million 2011 2012 One-off 2012 Variance Growth Acquisition FX Impact operational actual Invoiced turnover 19'596 20'753 20'753 5.9% 4.5% 1.5% (0.1%) 1'157 895 287 (25) MCHF Gross profit 5'898 6'094 6'094 3.3% 2.1% 1.2% 0.0% 196 123 73 0 MCHF Gross profit margin 30.1% 29.4% 29.4%
Slide 7: Income Statement per quarter
Income Statement per quarter 2011 2011 2011 2011 2012 2012 2012 2012 CHF million Total Total Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Invoiced turnover 4'820 4'966 4'812 4'998 19'596 4'834 5'228 5'409 5'282 20'753 Forwarding expenses (3'362) (3'470) (3'386) (3'480) (13'698) (3'332) (3'698) (3'884) (3'745) (14'659) G
Slide 8: Development Main Exchange Rates vs. CHF
Development Main Exchange Rates vs. CHF Income Statement (average rates) EUR USD GBP Full-year 2010 1.3864 1.0430 1.6119 2011 1.2350 0.8908 1.4226 2012 1.2062 0.9327 1.4827 Better/(Worse) (2.3%) 4.7% 4.2% 0.8% Net earnings impact February 2013 YTD 1.2274 0.9239 1.4472 Kuehne + Nagel Group – Full-yea
Slide 9: Agenda
Agenda Highlights 2012 | Gerard van Kesteren Operating Review 2012 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2013 | Reinhard Lange Kuehne + Nagel Group – Full-year Results 2012 March 4, 2013 p. 9
Slide 10: Global Development 2012
Global Development 2012 Global economy Logistics market trends Kuehne + Nagel ● Decrease of global GDP ● Regionally diverging demand ● Growth focus intact growth ● Decrease of traffic from Asia to ● Commitment to global strategy ● Sovereign debt crisis slows Europe down international trade ● Realign
Slide 11: Seafreight
KUEHNE+NAGEL L Seafreight
Slide 12: Seafreight Highlights 2012
Seafreight Highlights 2012 Seafreight forwarding market Seafreight carrier market ● Reduced market growth of 2% ● Overcapacity ● Declining volumes of trade lanes from Asia to Europe ● High volatility of rates ● Deceleration of growth in intra Asia market ● Lower freight rates have ● Reduction of vol
Slide 13: Seafreight Performance of business unit
Seafreight Performance of business unit CHF million 2010 2011 2012 Variance Growth Acquisition FX Impact Invoiced turnover 8'996 8'330 9'059 8.8% 7.6% 0.9% 0.3% Gross profit 1'224 1'254 1'275 1.7% 0.4% 0.6% 0.7% EBITDA 441 438 415 (5.3%) (5.7%) - 0.5% EBIT 416 411 391 (4.9%) (4.9%) (0.2%) 0.2% EBIT
Slide 14: Seafreight Volume development per relation
Seafreight Volume development per relation – in TEU ’000 3,473 3'500 3,274 + 6.4% 3'000 2'500 + 3.1% Europe Export 2'000 Asia-Pacific Export + 6% Americas Export 1'500 Others Export 1'000 + 9.9% 500 +16.8% 0 2011 2012 Kuehne + Nagel Group – Full-year Results 2012 March 4, 2013 p. 14
Slide 15: Airfreight
KUEHNE+NAGEL a) Airfreight p. 15
Slide 16: Airfreight Highlights 2012
Airfreight Highlights 2012 Airfreight forwarding market Airfreight carrier market ● Market contraction by 2 – 3% ● Carriers have overcapacities ● Europe: Decrease of import and export ● Decline of rates in many trade lanes volumes ● Asia/China: Strong decline of export volumes Kuehne + Nagel Perform
Slide 17: Airfreight Performance of Business Unit
Airfreight Performance of Business Unit CHF million 2010 2011 2012 Variance Growth Acquisition FX Impact Invoiced turnover 4'044 4'020 4'063 1.1% (3.1%) 3.8% 0.4% Gross profit 749 795 837 5.3% (0.3%) 4.4% 1.1% EBITDA excl. one-off item 234 252 229 (9.1%) (11.5%) 0.4% 2.0% EBIT excl. one-off item 216
Slide 18: Airfreight Volume development per relation
Airfreight Volume development per relation – in ton ’000 1,073 1,093 1'100 - 4.2% 1'000 900 800 700 Europe Export + 18.0% Asia-Pacific Export 600 + 2% Americas Export 500 Others Export 400 + 1.4% 300 200 - 0.7% 100 0 2011 2012 Kuehne + Nagel Group – Full-year Results 2012 March 4, 2013 p. 18
Slide 19: Road & Rail
KUEHNE+NAGEL a) : Ty Road & Rail
Slide 20: Road & Rail Highlights 2012
Road & Rail Highlights 2012 Road & Rail forwarding market Road & Rail carrier market ● Stagnating European ● High margin pressure due to increase of fuel cost Road market ● Further reduction of capacity in European main markets ● Increase of rates did not compensate substantial increase of operation
Slide 21: Road & Rail Performance of business unit
Road & Rail Performance of business unit CHF million 2010 2011 2012 Variance Growth Acquisition FX Impact Invoiced turnover 2'776 2'967 3'155 6.3% 6.2% 1.7% (1.6%) Net Invoiced Turnover 2'543 2'685 2'884 7.4% 7.2% 1.9% (1.6%) Gross profit 825 857 887 3.5% 2.8% 2.2% (1.5%) EBITDA 43 42 36 (14.3%) (11
Slide 22: Contract Logistics
KUEHNE+NAGEL ( ) Contract Logistics p. 22
Slide 23: Contract Logistics Highlights 2012
Contract Logistics Highlights 2012 Contract Logistics market ● Difficult market conditions in Europe due to pressure on pricing ● Further growth in Asia and emerging markets Kuehne + Nagel Performance ● Increase of net invoiced turnover of 4% ● High start-up costs for complex customer supply chain s
Slide 24: Contract Logistics Performance of business unit
Contract Logistics Performance of business unit CHF million 2010 2011 2012 Variance Growth Acquisition FX Impact Invoiced turnover 4'316 4'168 4'357 4.5% 4.7% 0.4% (0.5%) Net Invoiced Turnover 4'103 3'919 4'069 3.8% 3.8% 0.4% (0.3%) Gross profit 3'119 2'954 3'056 3.5% 3.2% 0.4% (0.1%) EBITDA 188 161
Slide 25: Agenda
Agenda Highlights 2012 | Gerard van Kesteren Operating Review 2012 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2013 | Reinhard Lange Kuehne + Nagel Group – Full-year Results 2012 March 4, 2013 p. 25
Slide 26: Financial Overview
Financial Overview CHF million 2010 2011 2012 Invoiced turnover 20,261 19,596 20,753 Gross Profit 5,958 5,898 6,094 EBITDA 1,004 978 856* Earnings for the year 605 606 493* EP S (basic) in CHF 5.06 5.04 4.06 Cash & Cash Equivalents 1,315 1,087 1,083 Equity 2,378 2,405 2,425 Equity % o f To tal A sse
Slide 27: Balance Sheet
Balance Sheet 31 December 31 December 31 December 31 December CHF million CHF million 2011 2012 2011 2012 Assets Liabilities and equity Equity attributable to the equity holders 2'382 2'396 of the parent company Non-controlling interests 23 29 Total equity 2'405 2'425 Non-current assets 2'239 2'203
Slide 28: Cash flow
Cash flow CHF million 2011 2012 Better/(Worse) Operational cash flow 978 849 (129) Changes in working capital (79) (117) (38) Income taxes paid (219) (176) 43 Cash flow from operating activities 680 556 (124) Cash flow from investing activities (606) 125 731 Cash flow from financing activities (534)
Slide 29: Development Cash flow and Working Capital
Development Cash flow and Working Capital 1'600 CHF million 252 (458) 556 (127) 1'400 1'200 1,058 1'000 835 800 600 400 200 0 Cash & Cash Cash flow from Capex (net) + Sale of financial Dividend payments + Cash & Cash Equivalents per operating activities Acquisitions investments Financing Equivalents
Slide 30: Net working capital development
Net working capital development Whereof Extended YTD Dec CHF million Dec 2011 Dec 2012 Business Payment Increase Growth Terms Trade receivables & Work in progress 2'620 2'809 189 155 34 Trade payables & Accrued trade expenses (2'021) (2'138) (117) (119) 2 Net Working Capital 599 671 72 35 37 KPI's:
Slide 31: Shareholder Value
Shareholder Value Performance Kuehne + Nagel share, SMI, SPI and BEUTRAN-Index (5 years) 2012 Index KNIN VX Equity ● Proposed dividend SMI of CHF 3.50* SPI (2011: CHF 3.85**) BEUTRAN Index ● Payout ratio of 86% +1.4% (PY: 77%) -9.2% ● Kuehne + Nagel -19.6% share outperforms -29.8% indices in 5-year
Slide 32: Agenda
Agenda Highlights 2012 | Gerard van Kesteren Operating Review 2012 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook 2013 | Reinhard Lange Kuehne + Nagel Group – Full-year Results 2012 March 4, 2013 p. 32
Slide 33: Focus 2013
Focus 2013 ● Continuous focus on intra Asia, Trans Pacific, Middle East and South America Growth ● Strengthening leading position in stagnating European markets ● Continuation of cost reduction programs Cost ● Focus on reduction of administrative costs ● Further investments in up-to-date IT systems
Slide 34: Outlook 2013
Outlook 2013 Volume development 2011 2012 2013 Kuehne + Nagel Kuehne + Nagel Kuehne + Nagel Market Seafreight 11% 6% 4 - 6% 2 - 3% [TEU] Airfreight 13% 2% 1 - 3% 0 - 2% [ton] Road & Rail 19% 7% 3 - 5% 0 - 2% [net invoiced turnover] Contract Logistics 8% 4% 0 - 2% 0% [net invoiced turnover] Kuehne +
Slide 35: Finance targets 2013
Finance targets 2013 • Conversion rate (EBIT/GP) in Seafreight 30+% and Profitability Airfreight 25+% CAPEX • Estimate at approx. CHF 175 million (2012: CHF 175 million) Working • Target to maintain working capital intensity at 3.5 – 4.0% Capital Cash • Emphasis on safeguarding a high cash position
Slide 36: Annex I-Upcoming Events
Annex I-Upcoming Events April 15, • First quarter 2013 results 2013 May 7, • Annual General Meeting 2013 May 14, • Dividend payment for 2012 2013 July 15, • Half-year 2013 results 2013 September 18, • Capital Market Day, London UK 2013 October 15, • 9-months 2013 results 2013 Kuehne + Nagel Group –
Slide 37: Annex II: Key Data Sheet Quarter by Quarter 2012 vs. 2011
Annex II: Key Data Sheet Quarter by Quarter 2012 vs. 2011 Variance in CHF million 2012 2011 2012 / 2011 Change in % 2012 / 2011 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total CHF million Seafreight Turnover 2'031 2'283 2'499 2'246 9'059 2'071 2'065 2'099 2'095 8'330 (1.9) +1
Slide 38: Annex II: Key Data Sheet Quarter by Quarter 2012 vs. 2011
Annex II: Key Data Sheet Quarter by Quarter 2012 vs. 2011 Variance in CHF million 2012 2011 2012 / 2011 Change in % 2012 / 2011 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total CHF million Road & Rail Logistics Turnover 744 814 790 807 3'155 681 812 702 772 2'967 +9.3 +0.2 +12
Slide 39: Annex II: Key Data Sheet Quarter by Quarter 2012 vs. 2011
Annex II: Key Data Sheet Quarter by Quarter 2012 vs. 2011 Variance in CHF million 2012 2011 2012 / 2011 Change in % 2012 / 2011 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total CHF million Real Estate Turnover - 1 0 1 2 - 1 0 1 2 Gross Profit - 1 0 0 1 - 1 0 1 2 Total Expenses
Slide 40: Thank you for your attention.
Thank you for your attention. p. 40
Slide 41: 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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