Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — 9M 2019 Earnings Presentation

29 slides from Kuehne & Nagel International's earnings presentation, Oct 22, 2019

  1. Slide 1: Analyst conference – Nine-months 2019 results

    Analyst conference – Nine-months 2019 results Kuehne + Nagel International AG 22 October 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 – results greatly improved

    Kuehne + Nagel – results greatly improved Group earnings at CHF 598 million, EPS growth accelerates; FCF improves further Strong EBIT in Seafreight of CHF 357 million, CHF 33 million above first nine months 2018 Satisfactory EBIT in Airfreight of CHF 263 million, despite reduced volumes Net turnover

  4. Slide 4: Overview Group performance first nine months 2019

    Overview Group performance first nine months 2019 Net Turnover Gross Profit 15,838 + CHF 477 m + CHF 253 m 15,361 5,989 5,736 2018 2019 + 3.1% + 4.4% 2018 2019 EBIT Earnings per Share 794 + CHF 49 m CHF 0.14 4.83 4.97 745 + 6.6% 2.9% 2018 2019 2018 2019 22.10.2019 | © Kuehne + Nagel | Analyst Confer

  5. Slide 5: Seafreight Airfreight

    Seafreight Airfreight No. 1 worldwide No. 2 worldwide Focus on customer service Lower high-tech and automotive volumes Significantly improved conversion rate Accelerating EBIT contribution in Q3 2019 from Quick acquisition 22.10.2019 | © Kuehne + Nagel | Analyst Conference 5

  6. Slide 6: Seafreight and Airfreight – volume development

    Seafreight and Airfreight – volume development 700 1,400 650 1,300 1,279 1,230 1,246 600 1,210 1,200 1,171 1,146 1,118 1,120 550 1,079 1,100 500 TEUs '000 1,000 Tons '000 450 448 441 441 900 439 400 422 409 404 406 800 391 350 700 300 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2018 2018 2018 2018 2019 201

  7. Slide 7: Seafreight – increased unit profit

    Seafreight – increased unit profit 400 350 327 331 333 324 321 311 311 313 306 300 (241) (236) 250 (229) (229) (232) (217) (219) (222) (211) 200 GP/TEU in CHF 150 Exp/TEU in CHF 98 EBIT/TEU in CHF 95 90 94 99 100 92 81 97 95 50 - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2017 2018 2018 2018 2018 2019 2019 201

  8. Slide 8: Airfreight – unit margins and profits improved y-o-y

    Airfreight – unit margins and profits improved y-o-y 90 84 80 81 80 70 70 77 excl. Quick 69 70 67 65 64 (60) (61) (59) 60 (51) (57) excl. Quick (50) (48) 50 (46) (45) (46) GP/100 kg in CHF Exp/100 kg in CHF 40 EBIT/100 kg in CHF 30 23 20 19 20 23 22 19 19 19 20 20 excl. Quick 10 - Q3 Q4 Q1 Q2 Q3 Q4

  9. Slide 9: Overland

    Overland Strong performance of European network business Digital platform in Asia launched 22.10.2019 | © Kuehne + Nagel | Analyst Conference 9

  10. Slide 10: Overland – strong y-o-y performance continued

    Overland – strong y-o-y performance continued Income statement YTD YTD Variance in CHF million Q3 2018 Q3 2019 2019/2018 Growth Forex1 Net turnover 2,630 2,682 2.0% 4.7% (2.7%) Gross profit 813 846 4.1% 7.3% (3.2%) EBITDA 88 102 15.9% 19.3% (3.4%) EBIT 57 62 8.8% 12.3% (3.5%) EBITDA / Net turnover m

  11. Slide 11: Jöbstl acquisition

    Jöbstl acquisition 22.10.2019 | © Kuehne + Nagel | Analyst Conference 11

  12. Slide 12: Jöbstl Group, Austria – key figures

    Jöbstl Group, Austria – key figures  Acquisition effective September 10, 2019  International and domestic groupage business  Full-truckload and less-than-truckload services business mainly in Eastern Europe  Revenue of approx. CHF 70 million  550.000 shipments p.a.  Approx. 180 employees  Sit

  13. Slide 13: Contract Logistics

    Contract Logistics Focus on restructuring and cost management Continuous review of real estate portfolio 22.10.2019 | © Kuehne + Nagel | Analyst Conference 13

  14. Slide 14: Contract Logistics – restructuring yielded results

    Contract Logistics – restructuring yielded results Income statement YTD Q3 YTD Q3 Variance 2 in CHF million 2018 2019 2019/2018 Growth Acquisition Forex Net turnover 3,883 4,020 3.5% 5.1% 1.6% (3.2%) Gross profit 2,912 2,973 2.1% 4.9% 0.7% (3.5%) EBITDA 187 559 198.9% 204.8% 2.1% (8.0%) EBIT 1 93 11

  15. Slide 15: Income Statement

    Income Statement 2018 2018 2018 2018 2019 2019 2019 2019 Variance Variance in % CHF million Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD 2019/2018 Q1 Q2 Q3 2019/2018 Growth Acquisition Forex 1 Net turnover 4,862 5,204 5,295 15,361 5,237 5,363 5,238 15,838 477 375 159 (57) 3.1% 4.3% 1.7% (2.9%) Gross profit 1,843 1,963

  16. Slide 16: Balance Sheet

    Balance Sheet December 31, September 30, December 31, September 30, CHF million 2018 2019 2018 2019 Assets Liabilities and equity Equity attributable to the equity holders 2,318 2,069 Property, plant and equipment 1,226 1,210 of the parent company Right-of-use assets - 1,750 Non-controlling interest

  17. Slide 17: Impact IFRS 16 effective 1.1.2019

    Impact IFRS 16 effective 1.1.2019 December 31, September 30, YTD Q3 2019 Estimate YTD CHF million CHF million 2018 2019 impact 2019 impact Income Statement - Balance Sheet impact YTD Sep 2019 Right-of-use assets1 - 1,750 Selling, general and admin expenses (369) (490) to (510) Deferred tax assets 17

  18. Slide 18: Cash and cash equivalents

    Cash and cash equivalents YTD Q3 YTD Q3 CHF million Variance 2018 2019 Cash and cash equivalents January 1, net 710 488 (222) Operational cash flow 885 1,323 438 Changes in working capital (310) (57) 253 Main variances 2019 vs. 2018 (excl. IFRS 16) Income taxes paid (173) (167) 6  Lower cash openin

  19. Slide 19: Free Cash Flow development (YTD in CHF million)

    Free Cash Flow development (YTD in CHF million) 700 617 Like-for-like comparison: 2018 2019 excl. IFRS 16 500 Operational CF CHF 885m CHF 949m 474 363 2017 CF from op. act. CHF 402m CHF 725m 300 CF from inv. act. CHF (167)m CHF (180)m 2018 254 140 2019 CF from fin. act. CHF (707)m CHF (525)m 100 123

  20. Slide 20: Working Capital

    Working Capital Dec 31, Sep 30, Better/(worse) CHF million 2018 2019 2019 vs. 2018 Trade receivables/Contract assets/Work in progress 4,238 4,055 183 Trade payables/Contract liabilities/Accrued trade expenses (3,160) (3,020) (140) Net working capital 1,078 1,035 43 KPIs: Working capital intensity 4.

  21. Slide 21: Return on capital employed (EBIT)

    Return on capital employed (EBIT) ROCE ROCE excl. acquisitions 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% 66% 61% and Airfreight 60% 60% 64% 58% 60% 62% 60%  Acquisition effect: 55% 57% Acquisition im

  22. Slide 22: Financial targets

    Financial targets YTD Targets KN Market CHF million Q3 2019 2022 2019 2019 double GROUP SEAFREIGHT the Conversion rate 13.3% 16% Volume growth market 1 to 2% ROCE (excl. acquisitions) 66% 70% in line AIRFREIGHT with Effective tax rate 23 - 24% approx. 24% Volume growth (5) to (6)% market Working cap

  23. Slide 23: Slide 23

  24. Slide 24: Upcoming events 2020

    Upcoming events 2020 02.01.-27.02.2020 Close period Q4 27.02.2020 Full-year 2019 results 08.-27.04.2020 Close period Q1 27.04.2020 Three-months 2020 results 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 20.10.202

  25. Slide 25: Quarter over Quarter 2019/2018

    Quarter over Quarter 2019/2018 2019* 2019 2018 Change in % Change in mCHF CHF million YTD Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 1. Seafreight A) Income Statement Turnover 7,370 2,437 2,453 2,480 7,370 2,170 2,166 2,532 6,868 +12.3 +13.3 (2.1) +7.3 267 287 (52) 502 Net Turnover

  26. Slide 26: Quarter over Quarter 2019/2018

    Quarter over Quarter 2019/2018 2019* 2019 2018 Change in % Change in mCHF CHF million YTD Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 3. Overland A) Income Statement Turnover 3,073 1,037 1,040 996 3,073 936 1,104 938 2,978 +10.8 (5.8) +6.2 +3.2 101 (64) 58 95 Net Turnover 2,682 901 9

  27. Slide 27: Quarter over Quarter 2019/2018

    Quarter over Quarter 2019/2018 2019* 2019 2018 Change in % Change in mCHF CHF million YTD Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 5. Kuehne + Nagel Group A) Income Statement Turnover 18,998 6,323 6,404 6,271 18,998 5,795 6,143 6,349 18,287 +9.1 +4.2 (1.2) +3.9 528 261 (78) 711 Cu

  28. Slide 28: Kuehne + Nagel International AG

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

  29. Slide 29: 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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