kuehne + nagel international ag analyst conference call q1 ... · analyst conference call – q1...

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


p. 4

Overview Q1 Results 2014 – Consolidated Income Statement


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


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






p. 7

Q1 Results 2014 – Kuehne + Nagel Group


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


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


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


Strong competitive

environment

Kuehne + Nagel:

Net Turnover increased

by 1.7% excl. forex

Improved profitability

p. 9

Performance by Business Unit – Seafreight



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 %


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


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



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


Net Turnover increased by 6.9% excl. forex

Gross Profit increased by 3.6% excl. forex

Significant improvement of profitability

Highlights Q1 2014


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%)



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



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%



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






p. 14

Financial Review – Group Key Data


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


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


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


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






p. 19

Volume Development and Outlook 2014


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


p. 22

Quarter over Quarter Q1 2014/2013


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



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


EBIT 33 29 +13.8 4

B) KPI

Change in Net Turnover, excluding Forex impact 1.7% 3.4%


EBIT / Turnover 2.9% 2.6%

2014 20132014 / 2013

Change in %

2014 / 2013

Change in

mCHF

p. 24



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


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%


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


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

%


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.

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