Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — H1 2011 Earnings Presentation

37 slides from Kuehne & Nagel International's earnings presentation, Jul 18, 2011

  1. Slide 1: Analyst Conference Call – 1st Half-Year 2011 Results

    Kuehne + Nagel International AG Analyst Conference Call – 1st Half-Year 2011 Results July 18, 2011 (CET 14.00) Schindellegi, Switzerland

  2. Slide 2: Agenda

    Agenda Welcome & Highlights 1st Half Year 2011 | Gerard van Kesteren Operating Review 1st Half Year 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange 1st Half-Year 2011 results July 18, 2011 Slide 2

  3. Slide 3: Highlights 1st Half-Year 2011

    Highlights 1st Half-Year 2011 • Strong volume growth above market in all business units: Kuehne+Nagel Market - Seafreight 12% 6% - Airfreight 18% <2% - Road&Rail 21% 4% - Contract Logistics 5% 3% • Material negative forex impact of 16% • Stable Seafreight and Airfreight margins per unit, impacted by

  4. Slide 4: Income Statement 1st Half-Year

    Income Statement 1st Half-Year CHF million 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 9'849 9'786 (0.6%) 11.3% 1.9% (13.9%) (63) 1'115 188 (1'366) MCHF Gross profit 2'961 2'954 (0.2%) 12.4% 1.5% (14.1%) (7) 368 43 (418) MCHF Gross profit margin 30.1% 30.2% Total expenses (2'48

  5. Slide 5: Development Main Exchange Rates vs. CHF

    Development Main Exchange Rates vs. CHF Year-End 1st Half-Year Impact Variance Net 2009 2010 2010 2011 % Earnings Expected Income Statement (average rates) full year 2011 Euro 1.5099 1.3864 1.4377 1.2608 (12.3%) (12.1) US Dollar 1.0811 1.0430 1.0789 0.9037 (16.2%) (15.9%) (16.3) (15.7%) British Poun

  6. Slide 6: Agenda

    Agenda Welcome & Highlights 1st Half Year 2011 | Gerard van Kesteren Operating Review 1st Half Year 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange 1st Half-Year 2011 results July 18, 2011 Slide 6

  7. Slide 7: Acquisition – Grupo Eichenberg, Brazil

    Acquisition – Grupo Eichenberg, Brazil  75 years of experience mainly in road transportation  700 employees in 11 locations in Brazil and offices in Argentina, Uruguay and Chile  One of the leading road transportation providers  Daily lines to destinations in Uruguay, Argentina and Chile  Domes

  8. Slide 8: Acquisition – Grupo Eichenberg, Brazil: financial key data

    Acquisition – Grupo Eichenberg, Brazil financial key data  100% of shares Transaction  Earn-out 2 years Turnover /  Turnover CHF 160 million volumes  55% Road, 20% Air, 15% Contract Logistics, 10% Sea  EBITDA CHF 8 million Goodwill tax Earnings  EBIT CHF 7 million deductible at 34% 1st Half-Ye

  9. Slide 9: Seafreight

    Seafreight 1st Half-Year 2011 results July 18, 2011 Slide 9

  10. Slide 10: Seafreight: Highlights 1st Half-Year 2011

    Seafreight: Highlights 1st Half-Year 2011 Volume increased by 12% (market growth 6%)  Particular strong growth rates from exports Europe to North America/Asia and from Asia to South America/Middle East. Continuous declining freight rates Ongoing implementation of “Go for Growth” strategy  Continuo

  11. Slide 11: Performance of Business Unit Seafreight – 1st Half-Year

    Performance of Business Unit Seafreight – 1st Half-Year CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 3'731 4'305 4'136 (3.9%) 9.4% 0.3% (13.4%) Gross profit 607 591 625 5.8% 20.8% 0.5% (15.1%) EBITDA 204 204 220 7.8% 23.5% 0.5% (15.7%) EBIT 184 190 210 10.5% 26.

  12. Slide 12: Performance of Business Unit Seafreight – Volume by Traffic Lane

    Performance of Business Unit Seafreight – Volume by Traffic Lane TEU‘s 1'800'000 % of Total Volumes growth 1'600'000 12% % of Total Volumes Other Export +9% 1'400'000 12% Other Export 9% North America Export +14% 1'200'000 9% North America Export 1'000'000 49% Asia Pacific Export +11% 800'000 49% As

  13. Slide 13: Airfreight

    Airfreight 1st Half-Year 2011 results July 18, 2011 Slide 13

  14. Slide 14: Airfreight: Highlights 1st Half-Year 2011

    Airfreight: Highlights 1st Half-Year 2011 Volume increased by 18% 21% (market growth <2%) 6-7%)  Particular 259‘000 Tons strong handled: growthHighest rates from levelexports of volume Europe of any to North quarter America/Asia and from North America to Europe/South America. Volatile freight rates

  15. Slide 15: Performance of Business Unit Airfreight – 1st Half-Year

    Performance of Business Unit Airfreight – 1st Half-Year CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 1'328 1'940 2'033 4.8% 17.7% 2.2% (15.1%) Gross profit 324 359 396 10.3% 25.1% 1.1% (15.9%) EBITDA 98 105 129 22.9% 40.0% 1.0% (18.1%) EBIT 89 97 121 24.7% 43.3%

  16. Slide 16: Performance of Business Unit Airfreight – Volume by Traffic Lane

    Performance of Business Unit Airfreight – Volume by Traffic Lane TON‘s 600 % of Total Volumes growth 500 % of Total Volumes 25% Other Export +56% 19% Other Export 400 14% North America Export +12% 14% North America Export 300 19% Asia Pacific Export -6% 23% Asia Pacific Export 200 100 44% Europe Exp

  17. Slide 17: Road & Rail Logistics

    Road & Rail Logistics 1st Half-Year 2011 results July 18, 2011 Slide 17

  18. Slide 18: Road & Rail Logistics: Highlights 1st Half-Year 2011

    Road & Rail Logistics: Highlights 1st Half-Year 2011 Net invoiced turnover (organically / currency adjusted) increased by 11% (market 4%); plus 10% acquisition impact Continuous pressure on margins Ongoing implementation of “Go for Growth” strategy  Organic development of groupage services in Polan

  19. Slide 19: Performance of Business Unit Road & Rail Logistics – 1st Half-Year

    Performance of Business Unit Road & Rail Logistics – 1st Half-Year CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 1'225 1'370 1'493 9.0% 14.2% 9.3% (14.5%) Net Invoiced Turnover 1'153 1'261 1'347 6.8% 11.3% 10.1% (14.6%) Gross profit 409 423 438 3.5% 10.2% 7.8% (1

  20. Slide 20: Contract Logistics

    Contract Logistics 1st Half-Year 2011 results July 18, 2011 Slide 20

  21. Slide 21: Contract Logistics: Highlights 1st Half-Year 2011

    Contract Logistics: Highlights 1st Half-Year 2011 Net invoiced turnover (currency adjusted) increased by 5% (market growth 3%) Idle space rate substantially reduced to 6% from 9% a year ago Improvement of profitability (currency adjusted)  EBITDA growth of 6.5%  EBIT margin stable at 1.8% 1st Half

  22. Slide 22: Performance of Business Unit Contract Logistics – 1st Half-Year

    Performance of Business Unit Contract Logistics – 1st Half-Year CHF million 2009 2010 2011 Variance Growth Acquisition FX Impact Invoiced turnover 2'153 2'165 2'060 (4.8%) 8.5% 0.1% (13.4%) Net Invoiced Turnover 2'062 2'094 1'935 (7.6%) 5.3% 0.1% (13.0%) Gross profit 1'568 1'566 1'475 (5.8%) 7.4% 0.

  23. Slide 23: Performance of Business Unit Contract Logistics – Idle Space Development

    Performance of Business Unit Contract Logistics – Idle Space Development North America Shared footprint in 18 months reduced by 8% 35.0% 29.1% 30.0% 25.0% 20.0% 14.2% 15.0% North America 12.1% 11.0% 10.0% 7.2% 6.0% 5.0% Target 5% Kuehne + Nagel Group 0.0% Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

  24. Slide 24: Agenda

    Agenda Welcome & Highlights 1st Half Year 2011 | Gerard van Kesteren Operating Review 1st Half Year 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange 1st Half-Year 2011 results July 18, 2011 Slide 24

  25. Slide 25: Financial Overview – Highlights 1st Half-Year

    Financial Overview – Highlights 1st Half-Year CHF million 2009 2010 2011 Gross Profit 2'929 2'961 2'954 EBITDA 466 475 502 Earnings for the period 258 281 312 Cash & Cash Equivalents 639 792 684 Per share CHF EPS (basic) 2.19 2.38 2.64 Equity % Total Assets 37.6% 37.2% 37.2% Operational Cash Flow 44

  26. Slide 26: Balance Sheet

    Balance Sheet 31 December 30 June CHF million 2010 2011 Assets Non-current assets 2'058 2'052 Trade receivables 2'077 2'154 Cash and cash equivalents 1'331 705 Others 475 527 Current assets 3'883 3'386 Total assets 5'941 5'438 Liabilities and equity Total equity 2'378 2'025 Non-current liabilities 6

  27. Slide 27: Cash Flow Statement – 1st Half-Year

    Cash Flow Statement – 1st Half-Year CHF million 2010 2011 Variance Operational cash flow 473 505 32 Changes in working capital (255) (254) 1 Income taxes paid (70) (115) (45) Cash flow from operating activities 148 136 (12) Cash flow from investing activities (39) (201) (162) Shareholder Return 2011

  28. Slide 28: Development of Working Capital

    Development of Working Capital CHF million June 2010 Dec 2010 Mar 2011 Jun 2011 Trade receivables & Work in progress 2'702 2'387 2'508 2'454 Trade payables & Accrued trade expenses (2'024) (1'946) (1'887) (1'824) Net Working Capital 678 441 621 630 KPI's: Working Capital Intensity 3.4% 2.2% 3.2% 3.2

  29. Slide 29: Agenda

    Agenda Welcome & Highlights 1st Half Year 2011 | Gerard van Kesteren Operating Review 1st Half Year 2011 | Reinhard Lange Financial Review | Gerard van Kesteren Outlook | Reinhard Lange 1st Half-Year 2011 results July 18, 2011 Slide 29

  30. Slide 30: Outlook 2011

    Outlook 2011 Kuehne + Nagel Market Seafreight 10-12% 5-6% (TEU) Airfreight 10-15% <2% (Tons) Road & Rail Logistics 15% 4% (Net Invoiced TO) Contract Logistics 7% 3% (Net Invoiced TO) 1st Half-Year 2011 results July 18, 2011 Slide 30

  31. Slide 31: Upcoming Events 2011

    Upcoming Events 2011 Investor’s Day  14 September 2011 / London Nine-months  17 October 2011 results 1st Half-Year 2011 results July 18, 2011 Slide 31

  32. Slide 32: Annex I: Key Data Sheet Half-Year 2011-2010

    Annex I: Key Data Sheet Half-Year 2011-2010 CHF million 2011 2010 2011 / 2010 Change in % Variance in CHF million 2011 / 2010 Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Seafreight Turnover 2'071 2'065 4'136 1'992 2'313 4'305 +4.0 (10.7) (3.9) 79 (248.0) (169.0) Gross Profit 312 313 625 285 306

  33. Slide 33: Annex I: Key Data Sheet Half-Year 2011-2010

    Annex I: Key Data Sheet Half-Year 2011-2010 CHF million 2011 2010 2011 / 2010 Change in % Variance in CHF million 2011 / 2010 Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Road & Rail Logistics Turnover 681 812 1'493 646 724 1'370 +5.4 +12.2 +9.0 35 88.0 123.0 Gross Profit 201 237 438 206 217 423

  34. Slide 34: Annex II: Annualised Impact - Acquisitions 2011

    Annex II: Annualised Impact - Acquisitions 2011 Cooltainer RH Freight Perishables Grupo Eichenberg in CHF million New Zealand United Kingdom Colombia & Ecuador Brazil Apr 2011 Apr 2011 Jan 2011 Aug 2011 Road & Rail Business Unit Seafreight Road & Rail Airfreight (predominantly) External turnover 37

  35. Slide 35: Annex III: Currency Impact Q1 and Q2 2011

    Annex III: Currency Impact Q1 and Q2 2011 Currency Impact in CHF million Currency Impact in % Description Q1 Q2 Total Q1 Q2 YTD Invoiced turnover (564) (802) (1'366) (12.3%) (15.3%) (13.9%) Gross Profit (180) (238) (418) (12.5%) (15.7%) (14.1%) EBITDA (27) (43) (70) (11.8%) (17.4%) (14.7%) EBIT (21)

  36. Slide 36: Thank you for your attention.

    Thank you for your attention.

  37. Slide 37: 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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