Kuehne & Nagel International Ag · SIX:KNIN

Kuehne & Nagel International — Kuehne + Nagel International — 9M 2018 Earnings Presentation

28 slides from Kuehne & Nagel International's earnings presentation, Oct 18, 2018

  1. Slide 1: Analyst conference – Nine-months 2018 results

    Analyst conference – Nine-months 2018 results Kuehne + Nagel International AG 18 October 2018 (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: Success continues

    Success continues Group’s EBIT for the first nine months CHF 60 million over last year Strong volume increase in Seafreight of 8.8%, 284,000 TEUs Strong volume increase in Airfreight of 16.0%, 180,000 tons Overland with substantial net turnover growth of 16.2% Contract Logistics with strong net turn

  4. Slide 4: Overview Group performance first nine months 2018

    Overview Group performance first nine months 2018 Net Turnover Gross Profit 15,361 + CHF 1,836 m 5,736 + CHF 600 m 13,525 5,136 + 13.6% + 11.7% 2017 2018 2017 2018 EBIT Earnings per Share 745 + CHF 60 m 4.83 + CHF 0.33 685 4.50 + 8.8% + 7.3% 2017 2018 2017 2018 18/10/2018 | © Kuehne + Nagel | Analys

  5. Slide 5: Seafreight Airfreight

    Seafreight Airfreight No. 1 worldwide No. 2 worldwide Strong volume growth in Q3 Solid performance of with 10.0% perishable acquisitions Continued pressure on gross profit margin Continued organic volume growth partially offset by operational leverage with industry-solutions 18/10/2018 | © Kuehne

  6. Slide 6: Seafreight and Airfreight – business development

    Seafreight and Airfreight – business development  Volume leverage supports the high conversion rate in Q3 of 29.8%  New business wins with KN ESP on digital end-to-end solutions  Strong growth in exports from North America and Asia  Strong volume growth in Pharma, Healthcare, Aerospace and e-com

  7. Slide 7: Seafreight and Airfreight - volumes

    Seafreight and Airfreight - volumes 1,300 700 1,230 1,210 650 1,200 1,118 1,120 600 1,089 1,079 1,100 1,039 1,048 1,028 550 1,000 500 TEUs '000 Tons '000 450 900 448 441 439 422 400 800 381 391 324 350 362 350 700 300 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 2017 2018 2018 2018 18/10/2018

  8. Slide 8: Seafreight – GP/Expenses/EBIT per TEU in CHF

    Seafreight – GP/Expenses/EBIT per TEU in CHF 400 348 350 332 328 327 331 321 324 311 311 300 (234) (237) (241) 250 (232) (225) (229) (229) (217) (219) 200 GP/TEU in CHF Exp/TEU in CHF 150 114 EBIT/TEU in CHF 100 91 96 98 95 94 92 100 90 50 - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 2017 2

  9. Slide 9: Airfreight – GP/Expenses/EBIT per 100 kg in CHF

    Airfreight – GP/Expenses/EBIT per 100 kg in CHF 80 74 69 69 70 68 67 70 66 65 64 60 (51) (50) 50 (47) (48) (48) (46) (46) (45) (46) 40 GP/100 kg in CHF Exp/100 kg in CHF 30 EBIT/100 kg in CHF 23 21 21 23 20 19 20 20 19 19 10 - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 2017 2018 2018 2018 1

  10. Slide 10: Seafreight and Airfreight – Income Statements

    Seafreight and Airfreight – Income Statements Income statement YTD YTD Variance in CHF million Q3 2017 Q3 2018 2018/2017 Growth Forex1 Turnover 6'546 6'868 4.9% 4.3% 0.6% Gross profit 1'053 1'116 6.0% 5.1% 0.9% EBITDA 324 341 5.2% 3.0% 2.2% EBIT 308 324 5.2% 2.9% 2.3% Conversion rate 29.2% 29.0% Vol

  11. Slide 11: Overland

    Overland Strong performance of US intermodal business Leverage of top line growth driving significant profitability improvement 18/10/2018 | © Kuehne + Nagel | Analyst Conference 11

  12. Slide 12: Overland – performance of business unit

    Overland – performance of business unit Income statement YTD YTD Variance in CHF million Q3 2017 Q3 2018 2018/2017 Growth Forex1 Net turnover 2'263 2'630 16.2% 8.9% 7.3% Gross profit 703 813 15.6% 9.6% 6.0% EBITDA 67 88 31.3% 28.0% 3.3% EBIT 36 57 58.3% 55.4% 2.9% EBITDA / Net turnover margin 3.0% 3

  13. Slide 13: Contract Logistics

    Contract Logistics Significant growth with e-commerce fulfilment solutions Rollout of new WMS-solution and warehousing technology ongoing 18/10/2018 | © Kuehne + Nagel | Analyst Conference 13

  14. Slide 14: Contract Logistics – performance of business unit

    Contract Logistics – performance of business unit Income statement YTD YTD Variance in CHF million Q3 2017 Q3 2018 2018/2017 Growth Acquisition Forex1 Net turnover 3'510 3'883 10.6% 5.4% 1.5% 3.7% Gross profit 2'631 2'912 10.7% 6.5% 0.4% 3.8% EBITDA 209 187 (10.5%) (14.3%) 0.5% 3.3% EBIT 114 93 (18.

  15. Slide 15: Income Statement

    Income Statement 2017 2017 2017 YTD Q3 2018 2018 2018 YTD Q3 Variance Variance in % CHF million Q1 Q2 Q3 2017 Q1 Q2 Q3 2018 2018/2017 Q1 Q2 Q3 2018/2017 Growth Acquisition Forex 1 Net turnover 4'299 4'516 4'710 13'525 4'862 5'204 5'295 15'361 1'836 563 688 585 13.6% 9.6% 1.8% 2.2% Gross profit 1'648

  16. Slide 16: Balance Sheet

    Balance Sheet December 31, September 30, December 31, September 30, CHF million 2017 2018 2017 2018 Assets Liabilities and equity Property, plant and equipment 1'249 1'210 Equity attributable to the equity holders 2'321 2'105 of the parent company Goodwill 849 820 Other intangibles 96 88 Non-control

  17. Slide 17: Cash and cash equivalents

    Cash and cash equivalents YTD YTD CHF million Variance Q3 2017 Q3 2018 Cash and cash equivalents 1.1.2018, net 837 710 (127) Operational cash flow 851 885 34 Changes in working capital (174) (310) (136) Main variances Q3 2018 vs. 2017  Lower cash opening balance CHF (127) million Income taxes paid

  18. Slide 18: Working Capital

    Working Capital Sep 30 Sep 30 Better/(worse) CHF million 2017 2018 2018 vs. 2017 Trade receivables/Contract assets/Work in progress 3,495 4,384 (889) Trade payables/Contract liabilities/Accrued trade expenses (2,652) (3,280) 628 Net working capital 843 1,104 (261) KPIs: Working capital intensity 3.7

  19. Slide 19: Return on capital employed (EBIT)

    Return on capital employed (EBIT) ROCE ROCE excl. acquisitions 78% *  Mix effect: 73% Stronger growth in 74% 73% Contract Logistics leads to 70% 69% higher asset allocation in 70% 67% 69% 67% proportion to Sea- and 66% 65% 66% 68% 67% Airfreight. 66% 63%  Currency effect: 62% 64% 60% 62% Due to in

  20. Slide 20: Financial targets 2018

    Financial targets 2018 YTD Targets YTD Market CHF million Q3 2018 2022 Q3 2018 2018 GROUP SEAFREIGHT Conversion rate 13% 16% Conversion rate 29.0% ROCE (excl. acquisitions) 60% 70% Volume growth 8.8% ~ 3% Effective tax rate 23% ~ 22 - 23% AIRFREIGHT Working capital intensity 4.3% 3.5 - 4.5% Conversi

  21. Slide 21: Leading the Transformation in a changing landscape

    Leading the Transformation in a changing landscape Fast changing trade conditions Cost control to ascertain leverage Unpredictability of Brexit impact Digitisation as a game changer Indicators signal lower growth Acquisitions as an accelerator 18/10/2018 | © Kuehne + Nagel | Analyst Conference 21

  22. Slide 22: Slide 22

  23. Slide 23: Upcoming events 2018 - 2019

    Upcoming events 2018 - 2019 Q4 27.02.19 Full-year 2018 results Q1 25.04.19 Three-months 2019 results AGM 07.05.19 Annual General Meeting Q2 23.07.19 Half-year 2019 results Q3 22.10.19 Nine-months 2019 results 18/10/2018 | © Kuehne + Nagel | Analyst Conference 23

  24. Slide 24: Quarter over Quarter 2018/2017

    Quarter over Quarter 2018/2017 CHF million 2018 2017 2018 / 2017 Change in % 2018 / 2017 Change in mCHF Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 1. Seafreight A) Income Statement Turnover 2'170 2'166 2'532 6'868 2'095 2'167 2'284 6'546 +3.6 - +10.9 +4.9 75 (1) 248 322 Net Turnover

  25. Slide 25: Quarter over Quarter 2018/2017

    Quarter over Quarter 2018/2017 2018 2017 2018 / 2017 Change in % 2018 / 2017 Change in mCHF CHF million Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 3. Overland A) Income Statement Turnover 936 1'104 938 2'978 794 826 822 2'442 +17.9 +33.7 +14.1 +21.9 142 278 116 536 Net Turnover 850

  26. Slide 26: Quarter over Quarter 2018/2017

    Quarter over Quarter 2018/2017 CHF million 2018 2017 2018 / 2017 Change in % 2018 / 2017 Change in mCHF Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL Q1 Q2 Q3 TOTAL 5. Kuehne + Nagel Group A) Income Statement Turnover 5'795 6'143 6'349 18'287 5'185 5'390 5'633 16'208 +11.8 +14.0 +12.7 +12.8 610 753 7

  27. 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

  28. Slide 28: Contact

    Contact Markus Blanka-Graff Andrea Kobi CFO Investor Relations markus.blanka@kuehne-nagel.com andrea.kobi@kuehne-nagel.com Tel: +41 (0)44 7869 644 Tel: +41 (0)44 7869 561 Disclaimer Investing in the shares of Kuehne + Nagel International AG involves risks. Prospective investors are strongly requeste

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