April 14, 2014
Schindellegi, Switzerland
Analyst Conference Call – Q1 Results 2014
Kuehne + Nagel International AG
Q1 Results 2014 – Analyst Conference Call
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 expectations contained in the
presentation.
Reference is also made to our disclaimer on the last slide of this presentation.
Agenda
Overview Q1 Results 2014 | Gerard van Kesteren
Business Performance | Detlef Trefzger
Financial Review | Gerard van Kesteren
Outlook 2014 | Detlef Trefzger
Q1 Results 2014 – Analyst Conference Call
p. 4
Overview Q1 Results 2014 – Consolidated Income Statement
Q1 Results 2014 – Analyst Conference Call
2014/2013 Growth Forex
Net Turnover 4,127 4,182 (55) (1.3%) 3.3% (4.6%)
Gross Profit 1,532 1,537 (5) (0.3%) 2.8% (3.1%)
Gross Profit margin 37.1% 36.8%
EBITDA 235 219 16 7.3% 11.4% (4.1%)
EBITDA margin 5.7% 5.2%
EBIT 190 169 21 12.4% 17.1% (4.7%)
EBIT margin 4.6% 4.0%
EBT 192 171 21 12.3% 17.0% (4.7%)
EBT margin 4.7% 4.1%
Earnings for the period 150 134 16 11.9% 16.4% (4.5%)
2014Variance in %Variance
2014/20132013CHF million
Material negative foreign currency impact
Increased Working Capital Intensity
Volume growth in line with our outlook
EBIT improved by + 12.4% (+ 17.1% excl. forex)
p. 5
EBIT per Business Unit Q1 2014/2013
Q1 Results 2014 – Analyst Conference Call
Seafreight 92 96 (4) incl. Insurance Brokers
Airfreight 62 53 9
Overland 3 (9) 12
Contract Logistics 33 29 4 incl. Real Estate
Kuehne + Nagel 190 169 21
Business Units
Q1 EBIT in CHF million
2014 2013Better/
(Worse)
Agenda
Overview Q1 Results 2014 | Gerard van Kesteren
Business Performance | Detlef Trefzger
Financial Review | Gerard van Kesteren
Outlook 2014 | Detlef Trefzger
Q1 Results 2014 – Analyst Conference Call
p. 7
Q1 Results 2014 – Kuehne + Nagel Group
Q1 Results 2014 – Analyst Conference Call
Decreased Net Turnover by 1.3% (excl. Forex + 3.3%)
Decreased Gross Profit by 0.3% (excl. Forex + 2.8%)
Increased EBIT by 12.4% (excl. Forex + 17.1%)
Working Capital Intensity 4.1% compared to
3.7% in March 2013
Effective tax rate sustainable at 21 - 22%
Highlights Q1 2014
3951
4182 4127
3000
3500
4000
4500
03/2012 03/2013 03/2014
CH
F m
illio
n
Net Turnover
15021537 1532
1000
1100
1200
1300
1400
1500
1600
1700
03/2012 03/2013 03/2014
CH
F m
illio
n
Gross Profit
* Excl. EU Antitrust fine of CHF 65 million in 2012
165* 169
190
100
110
120
130
140
150
160
170
180
190
200
03/2012 03/2013 03/2014
CH
F m
illio
n
EBIT
p. 8
Performance Q1 2014 – Business Units
Q1 Results 2014 – Analyst Conference Call
Contract Logistics
Overland
Airfreight
Market increased by 3 to 4%
Market rate volatility
continues
Kuehne + Nagel:
Increased volume
by 6.9%
Focus on profitability vs.
volume growth
Conversion Rate at 29%
Seafreight
Market increased by 2 to 3%
Rates stable
Kuehne + Nagel:
Increased volume
by 1.4%
Stable margin GP/100kg
Conversion Rate increased
to 28%
Market increased
between 1 to 2%
Kuehne + Nagel:
Net Turnover increased
by 6.9% excl. forex
Profitability substantially
improved
Market increased by 2 to 3%
Strong competitive
environment
Kuehne + Nagel:
Net Turnover increased
by 1.7% excl. forex
Improved profitability
p. 9
Performance by Business Unit – Seafreight
Q1 Results 2014 – Analyst Conference Call
2014/2013 Growth Forex
Turnover 2,154 2,236 (3.7%) 10.4% (14.1%)
Gross Profit 319 327 (2.4%) 3.4% (5.8%)
EBITDA 98 101 (3.0%) 2.0% (5.0%)
EBIT 92 96 (4.2%) 1.0% (5.2%)
EBIT in % of GP 28.8% 29.4%
Q1 2014 Q1 2013VarianceIncome Statement
in CHF million
819
879 914
861 838
911 923 906 896
394 370 373 376 390 364 366 355 356
28.8
31.1 32.8 32.4
29.4 30.4
32.0 31.1
28.8
20.0
25.0
30.0
35.0
40.0
45.0
200
300
400
500
600
700
800
900
1,000
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
TEU '000
GP/TEUin CHF
Conversion Rate in %
Conversion Rate in %
Gross Profit increase of 3.4% excl. forex
Volume growth of 6.9%
Conversion Rate stable at 29%
Highlights Q1 2014
‚000 TEU,
CHF in % Q1 2012 Q1 2013 Q1 2014
Q1 2014 356 400
Q1 2013 390 420
GP/TEU
in CHF
GP/TEU
in USD
p. 10
Performance by Business Unit – Airfreight
Q1 Results 2014 – Analyst Conference Call
268 270 272 283 281 277 279
297 285
76 78 76 76 78 81 79 72 77
23.5
27.0
24.5 22.0
24.2 25.6 25.5
26.0
28.3
10.0
15.0
20.0
25.0
30.0
35.0
40.0
50
100
150
200
250
300
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Tons '000
GP/100kgin CHF
ConversionRate
Conversion Rate in %
2014/2013 Growth Forex
Turnover 1,002 1,011 (0.9%) 5.4% (6.3%)
Gross Profit 219 219 - 5.5% (5.5%)
EBITDA 68 59 15.3% 20.4% (5.1%)
EBIT 62 53 17.0% 22.7% (5.7%)
EBIT in % of GP 28.3% 24.2%
Income Statement in CHF million
Q1 2014 Q1 2013Variance
Strong development of profitability
Volume growth of 1.4%
EBIT increased by 22.7% excl. forex
Target Conversion Rate of 25% overachieved
Highlights Q1 2014
‚000 Tons,
CHF in % Q1
2014
Q1
2013
Q1
2012
p. 11
Performance by Business Unit – Overland
Q1 Results 2014 – Analyst Conference Call
Net Turnover increased by 6.9% excl. forex
Gross Profit increased by 3.6% excl. forex
Significant improvement of profitability
Highlights Q1 2014
2014/2013 Growth Forex
Net Turnover 692 670 3.3% 6.9% (3.6%)
Gross Profit 225 221 1.8% 3.6% (1.8%)
EBITDA 12 2 > 100% > 100% -
EBIT 3 (9) > 100% > 100% -
EBITDA / Net Turnover Margin 1.7% 0.3%
EBIT / Net Turnover Margin 0.4% (1.3%)
EBIT / GP Margin 1.3% (4.1%)
Income Statement in CHF million
Q1 2014 Q1 2013Variance
14 15
(1)
8
2
15
5
11 12
2.1 2.0
(0.1)1.1
0.3
2.1 0.7 1.5 1.7
(1)
4
9
14
19
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
EBITDA
EBITDA/
Net Turnover Margin
In MCHF,
in % Q1
2014
Q1
2013
Q1
2012
p. 12
Performance by Business Unit – Contract Logistics
Q1 Results 2014 – Analyst Conference Call
2014/2013 Growth Forex
Net Turnover 1,026 1,029 (0.3%) 1.7% (2.0%)
Gross Profit 769 770 (0.1%) 1.6% (1.7%)
EBITDA 57 57 - 1.8% (1.8%)
EBIT 33 29 13.8% 13.8% -
EBITDA / Net Turnover Margin 5.6% 5.5%
EBIT / Net Turnover Margin 3.2% 2.8%
Income Statement in CHF million
Q1 2014 Q1 2013Variance
51
54 58 57 57 60
64
72
57
5.1 5.3 5.7 5.4 5.5 5.7 6.0 6.5 5.6
-5
10 15 20 25 30 35 40 45 50 55 60 65 70 75 80
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
EBITDA
EBITDA/Net TurnoverMargin
Increase of Net Turnover by 1.7% excl. forex
Increase of Gross Profit by 1.6% excl. forex
EBIT improved by 13.8%
Highlights Q1 2014
In MCHF,
in % Q1
2012
Q1
2013
Q1
2014
Agenda
Overview Q1 Results 2014 | Gerard van Kesteren
Business Performance | Detlef Trefzger
Financial Review | Gerard van Kesteren
Outlook 2014 | Detlef Trefzger
Q1 Results 2014 – Analyst Conference Call
p. 14
Financial Review – Group Key Data
Q1 Results 2014 – Analyst Conference Call
CHF million Q1 2014 Q1 2013
Net Turnover 4,127 4,182
Gross Profit 1,532 1,537
EBITDA 235 219
Earnings for the period 150 134
EPS (basic) in CHF 1.23 1.11
Total Assets 6,522 6,499
Equity 2,657 2,580
Equity % of Total Assets 40.7% 39.7%
Cash & Cash Equivalents, net 1,225 1,133
Operational Cash Flow 243 223
Capex 44 32
p. 15
Financial Review – Balance Sheet
Q1 Results 2014 – Analyst Conference Call
CHF million31 March
2014
31 December
2013CHF million
31 March
2014
31 December
2013
Assets Liabilities and equity
Total equity 2,657 2,558
Non-current assets 2,126 2,133 Non-current liabilities 591 563
Trade payables 1,271 1,362
Trade receivables 2,526 2,426 Accrued trade expenses / deferred income 939 936
Cash and cash equivalents 1,258 1,255 Bank and other interest-bearing liabiliites 41 21
Others 612 560 Others 1,023 934
Current assets 4,396 4,241 Current liabilities 3,274 3,253
Total assets 6,522 6,374 Total liabilities and equity 6,522 6,374
p. 16
Financial Review – Cash Flow
Q1 Results 2014 – Analyst Conference Call
CHF million Q1 2014 Q1 2013 Better/(Worse)
Operational cash flow 243 223 20
Changes in working capital (131) (69) (62)
Income taxes paid (65) (50) (15)
Cash flow from operating activities 47 104 (57)
Cash flow from investing activities (35) (24) (11)
Cash flow from financing activities (21) (12) (9)
Exchange difference on cash and cash equivalents (8) 7 (15)
Increase/(decrease) in cash and cash equivalents (17) 75 (92)
Cash and cash equivalents at the beginning of the
period, net1,242 1,058 184
Cash and cash equivalents at the end of the period, net 1,225 1,133 92
p. 17
Financial Review – Working Capital
Q1 Results 2014 – Analyst Conference Call
CHF million March 2014 Dec 2013 March 2013Better/(Worse)
Mar 14 vs. Mar 13
Trade receivables & Work in progress 2,879 2,806 2,870 (9)
Trade payables & Accrued trade expenses (2,061) (2,148) (2,108) (47)
Net Working Capital 818 658 762 (56)
KPI's:
Working Capital Intensity 4.1% 3.1% 3.7% (0.4%)
DSO 46.7 43.2 46.1 (0.6)
DPO 53.4 52.6 53.5 (0.1)
∆ 6.7 9.4 7.4 (0.7)
Agenda
Overview Q1 Results 2014 | Gerard van Kesteren
Business Performance | Detlef Trefzger
Financial Review | Gerard van Kesteren
Outlook 2014 | Detlef Trefzger
Q1 Results 2014 – Analyst Conference Call
p. 19
Volume Development and Outlook 2014
Q1 Results 2014 – Analyst Conference Call
Airfreight
[Ton]
Overland
[Net turnover] excl. forex
Contract
Logistics
[Net turnover] excl. forex
0 %
0 to -2 %
+ 2 %
Seafreight
[TEU] + 2 to 3 % + 3 to 4 %
+ 2 to 3 %
+ 1 to 2 %
+ 2 to 3 %
Business Unit
Market
+ 3 %
+ 4 %
- 3 %
+ 5 %
+ 7 %
+ 1 %
+ 7 %
+ 2 %
Kuehne + Nagel
Q1 2014 - Actual
Market Kuehne + Nagel
2013 - Actual
+ 3 to 4 %
+ 1 to 3 %
+ 1 to 3 %
+ 2 to 3 %
Market
1.5 x Market
1.5 x Market
Market
2 x Market
Kuehne + Nagel
2014 - Estimate
Appendix
Upcoming Events
May 6, 2014 Annual General Meeting
May 13, 2014 Dividend Payment for 2013
July 14, 2014 Half-year Results 2014
September 17, 2014 Capital Markets Day, London
October 13, 2014 9-months Results 2014
Q1 Results 2014 – Analyst Conference Call
p. 22
Quarter over Quarter Q1 2014/2013
Q1 Results 2014 – Analyst Conference Call
CHF million
Q1 Q1 Q1 Q1
1. SeafreightA) Income Statement
Turnover 2,154 2,236 (3.7) (82)
Net expenses for services incl. duties & taxes (1,835) (1,909) +3.9 74
Gross Profit 319 327 (2.4) (8)
Opex (221) (226) +2.2 5
EBITDA 98 101 (3.0) (3)
Depreciation and Amortisation (6) (5) (20.0) (1)
EBIT 92 96 (4.2) (4)
B) KPI
EBIT / GP conversion ratio 28.8% 29.4%
Volume (TEU's '000) 896 838 +6.9 58
GROSS PROFIT 356 390 (8.7) (34)
EXPENSES CHF per TEU (253) (276) +8.3 23
EBIT 103 114 (9.6) (11)
2. AirfreightA) Income Statement
Turnover 1,002 1,011 (0.9) (9)
Net expenses for services incl. duties & taxes (783) (792) +1.1 9
Gross Profit 219 219 0.0 0
Opex (151) (160) +5.6 9
EBITDA 68 59 +15.3 9
Depreciation and Amortisation (6) (6) 0.0 0
EBIT 62 53 +17.0 9
B) KPI
EBIT / GP conversion ratio 28.3% 24.2%
Volume (TON's '000) 285 281 +1.4 4
GROSS PROFIT 77 78 (1.3) (1)
EXPENSES CHF per 100kg (55) (59) +6.8 4
EBIT 22 19 +15.8 3
2014 20132014 / 2013
Change in %
2014 / 2013
Change in
mCHF
p. 23
Quarter over Quarter Q1 2014/2013
Q1 Results 2014 – Analyst Conference Call
CHF million
Q1 Q1 Q1 Q1
3. OverlandA) Income Statement
Turnover 754 737 +2.3 17
Net expenses for services incl. duties & taxes (529) (516) (2.5) (13)
Gross Profit 225 221 +1.8 4
Opex (213) (219) +2.7 6
EBITDA 12 2 +500.0 10
Depreciation and Amortisation (9) (11) +18.2 2
EBIT 3 (9) +133.3 12
B) KPI
Change in Net Turnover, excluding Forex impact 6.9% (0.4%)
EBITDA / Turnover 1.6% 0.3%
EBIT / Turnover 0.4% (1.2%)
4. Contract LogisticsA) Income Statement
Turnover 1,119 1,110 +0.8 9
Net expenses for services incl. duties & taxes (350) (340) (2.9) (10)
Gross Profit 769 770 (0.1) (1)
Opex (712) (713) +0.1 1
EBITDA 57 57 0.0 0
Depreciation and Amortisation (24) (28) +14.3 4
EBIT 33 29 +13.8 4
B) KPI
Change in Net Turnover, excluding Forex impact 1.7% 3.4%
EBITDA / Turnover 5.1% 5.1%
EBIT / Turnover 2.9% 2.6%
2014 20132014 / 2013
Change in %
2014 / 2013
Change in
mCHF
p. 24
Quarter over Quarter Q1 2014/2013
Q1 Results 2014 – Analyst Conference Call
CHF million
Q1 Q1 Q1 Q1
5. Kuehne + Nagel GroupA) Income Statement
Turnover 5,029 5,094 (1.3) (65)
Customs duties and taxes (902) (912) +1.1 10
Net Turnover 4,127 4,182 (1.3) (55)
Net expenses for services from third parties (2,595) (2,645) +1.9 50
Gross Profit 1,532 1,537 (0.3) (5)
Opex (1,297) (1,318) +1.6 21
EBITDA 235 219 +7.3 16
Depreciation and Amortisation (45) (50) +10.0 5
EBIT 190 169 +12.4 21
Result from finance and associates 2 2 0.0 0
EBT 192 171 +12.3 21
Income tax (42) (37) (13.5) (5)
Earnings for the period 150 134 +11.9 16
Non-controlling interests (3) (2) (50.0) (1)
Net Earnings 147 132 +11.4 15
B) KPI
GP / Turnover 30.5% 30.2%
EBITDA / Turnover 4.7% 4.3%
EBIT / Turnover 3.8% 3.3%
Earnings for the period/Turnover 3.0% 2.6%
2014 20132014 / 2013
Change in %
2014 / 2013
Change in
mCHF
p. 25
Development Main Exchange Rates vs. CHF
Q1 Results 2014 – Analyst Conference Call
Income Statement
(average rates) 2013 2012 2014 2013
Euro 1.2296 1.2062 1.2232 1.2260 (0.2%)
US Dollar 0.9237 0.9327 0.8904 0.9285 (4.1%) (4.5%)
British Pound 1.4492 1.4827 1.4756 1.4439 2.2%
Q 1Full Year Impact Net
Earnings
Variance
%
Q1 Results 2014 – Analyst Conference Call
Contact
Gerard van Kesteren Markus Blanka-Graff Andrea Kobi
CFO Director Corporate Finance + Investor Relations Investor Relations
[email protected] [email protected] [email protected]
Tel: +41 (0)44 7869 564 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 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 which involve risks and uncertainties. These statements may be identified by such words as “may”, “plans”, “expects”, “believes” and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. No obligation is assumed to update any forward-looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments.
The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning the Kuehne + Nagel Group. None of Kuehne + Nagel International AG or their respective affiliates shall have any liability whatsoever for any loss whatsoever arising from any use of this document, or otherwise arising in connection with this document.
This presentation is not an offer of securities for sale in the United States. The offer and sale of Kuehne + Nagel International AG securities has not been, and will not be registered under the United States Securities Act of 1933, as amended. Kuehne + Nagel International AG securities may not be offered or sold to anyone in the United States absent such registration, except pursuant to an appropriate exemption from registration. There will be no public offering of Kuehne + Nagel International AG securities in the United States.