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Page 1: 2016 IN FOCUS - Kuehne + Nagel · 5 kuehne + nagel business units geschäftsbereiche der kÜhne + nagel-gruppe overland contract logistics seafreight airfreight the kuehne + nagel

2016 IN FOCUS

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KEY FIGURES

REGIONAL GROSS PROFIT

CHF million

GROSS PROFIT

2016

4,640

EMEA

1,244

AMERICAS

666

ASIA-PACIFIC

REGIONAL TURNOVER

CHF million

TURNOVER

2016

12,908

EMEA

4,834

AMERICAS

2,243

ASIA-PACIFIC

2016 PERFORMANCE

CHF million

TURNOVER 19,985

NET TURNOVER 16,525

GROSS PROFIT 6,550

EBITDA 1,110

EBIT 918

EARNINGS FOR THE YEAR 720

NUMBER OF OPERATING STAFF 70,038

2016 DIVIDEND

DIVIDEND* CHF 5.50

DIVIDEND PAYOUT CHF 658 MILLION

PAYOUT RATIO 91.6%

DIVIDEND YIELD 3.7%

* Proposal to the Annual General Meeting

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AMERICAS

GLOBAL NETWORK

employees

locations

291

10,418

EBIT in CHF million

207

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EMEA

ASIA-PACIFIC

GLOBAL NETWORK

locations

784employees

51,835EBIT in CHF million

509

locations

234employees

7,785EBIT in CHF million

202

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5

KUEHNE + NAGEL BUSINESS UNITS

Geschäftsbereiche der KÜHNE + NAGEL-Gruppe

OVERLAND

CONTRACT LOGISTICS

SEAFREIGHT AIRFREIGHT

THE KUEHNE + NAGEL GROUP

AT A GLANCE

countries worldwide locations worldwide employees worldwide

108 1,309 70,038

CONTENTS

2 KEY FIGURES

3 GLOBAL NETWORK

6 WELCOME NOTE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS

8 BUSINESS UNITS

12 CREATING MUTUAL SUCCESS

18 INDUSTRY-SPECIFIC SOLUTIONS

20 PERSPECTIVES

22 EMPLOYEES

24 SOCIAL RESPONSIBILIT Y – KUEHNE FOUNDATIONS

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6 BOARD OF DIRECTORS

LADIES AND GENTLEMEN,DEAR SHAREHOLDERS

In 2016, the Kuehne + Nagel Group once again achieved very good results with an increase in earnings by 6 per cent despite the challenging macroeconomic environment. Market share gains in all business units underline that the focus on industry-specific logistics services and tailor- made solutions meets the requirements of customers around the world. The Group’s high profitability, setting benchmarks in the industry, is evidence of its operational efficiency. The continuing strong performance confirms the competence, professionalism and commitment of the employees worldwide, and on behalf of the Board of Directors I would like to thank all of them.

The excellent market position and reputation the Kuehne + Nagel Group enjoys has been built up over more than 125 years. Across three generations of the Kuehne family until today, the company has embodied a culture charac- terised by entrepreneurial spirit, customer orientation, responsibility, innovative power and efficiency.

For more than four decades Klaus-Michael Kuehne, grand- son of the company founder August Kuehne, has signi- ficantly shaped the transformation from a medium-sized family business into a leading global logistics company. As majority shareholder and Honorary Chairman of Kuehne + Nagel International AG, publicly listed since 1994, his entrepreneurial focus continues to be on the dynamic development of the Kuehne + Nagel Group. The social responsibility Klaus-Michael Kuehne assumes through his Kuehne Foundation, also on behalf of the company, benefits with its logistics support projects the entire industry.

By striking the right balance between tradition and inno- vation as well as clearly defined future strategies and

leadership principles, Kuehne + Nagel will master upco- ming challenges in a fast changing and complex market environment. The company’s business model is resilient and the structures and processes both scalable and flexible enough to act proactively. Its customer proximity enables Kuehne + Nagel to expand and optimise its service portfolio to meet current and future requirements. Other important factors contributing to the company’s success are its focus on integrated industry-specific logis- tics solutions across multiple stages in the supply chain as well as Kuehne + Nagel’s pioneering IT competence.

The logistics business is going through a period of change with mergers and acquisitions on the one hand and digi- talisation, creating new competitors and new business models, on the other. Kuehne + Nagel is making use of these shifts to open up new markets through the develop-ment of digital products and services and to generate further efficiency gains for customers and the company. Thus, Kuehne + Nagel considers digitalisation as a factor that is reinforcing its business model.

The Kuehne + Nagel brand is particularly strong and meets the highest standards. The Management Board enjoys the confidence of the Board of Directors to set the right priorities for continuing success thereby further increasing company value, and to consistently implement the long- term strategy.

We would be delighted if you, ladies and gentlemen, dear shareholders, continue to accompany us on our journey!

Yours sincerely, Dr. Joerg WolleChairman of the Board of Directors

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7KUEHNE + NAGEL INTERNATIONAL AG

VERWALTUNGSRATFrom left to right:

DR. RENATO FASSBIND

HANS LERCH

HAUKE STARS

DR. JOERG WOLLE, Chairman

KLAUS-MICHAEL KUEHNE, Honorary Chairman

KARL GERNANDT, Vice Chairman

DR. THOMAS STAEHELIN

JUERGEN FITSCHEN

DR. MARTIN C. WITTIG

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8 BUSINESS UNITS

PERFORMANCE FIGURES

seafreight specialists

export TEU per day

11,100

9,154

worldwide

NO.1

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SEAFREIGHT MARKET LEADING.SOLUTION-ORIENTED. ROBUST.

2016 PERFORMANCE

CHF million

TURNOVER 7,981

NET TURNOVER 5,814

GROSS PROFIT 1,416

EBITDA 465

EBIT 445

TEU ‘000 4,053

NUMBER OF OPERATING STAFF 9,154

9SEAFREIGHT

million TEU in 2016

4.1

In 2016, the number of TEU handled by Kuehne + Nagel exceeded the 4 million mark for the first time. With a volume increase of 6.1 per cent, the company grew almost twice as fast as the market and maintained the conversion rate with 31.4 per cent at a high level. The result confirms Kuehne + Nagel’s position as market leader as well as the resilience of its business model in rough seas.

In the eighth year of the shipping crisis characterised by weak demand, overcapacity and record low freight rates, its effects were particularly evident. A major Asian shipping company had to suspend services and the industry-wide trend towards consolidation was accelerated by mergers, takeovers and alliances. Market participants were forced to manage different dynamics.

Kuehne + Nagel maintains its leading position in sea- freight not only by business strategies focused on trade lanes and customer groups, but also by a competitive edge in productivity based on efficient IT systems and continuous automation and digitalisation of processes. In 2016, the new operational software “SeaLOG” for seafreight imports was implemented on schedule in more than 100 countries, and improvements in quality were already achieved in the first year due to this proprietary development. The digital quotation and booking plat- form KN FreightNet for LCL (Less-than-Container Load) generated new orders as well as Kuehne + Nagel’s own LCL network, which grew by 32 new routes in 2016,

making it the largest LCL network in the world today.In seafreight, Kuehne + Nagel can meet the most diverse customer requirements. High levels of transpa-rency in order management are essential for the retail sector. Kuehne + Nagel’s new Enterprise Solutions Platform enables the entire order management pro- cess to be digitalised down to article level. Industry-specific e-commerce solutions provide Kuehne + Nagel’s seafreight customers with added value and increases in productivity. The specialisation in the reefer con- tainer business has been particularly successful. With KN PharmaChain, Kuehne + Nagel offers its customers from the pharmaceutical and healthcare industry an innovative, industry-leading service. Cool chain logistics does not only cover pharmaceutical products, it is also tailored for types of goods such as fruit, vegetables, flowers and other temperature-sensitive freight. Upon customer requirement, a temperature monitoring system, independent of the shipping company, displays compliance with the cool chain online in real time, allowing for a rapid response in case of any temperature deviations. With its one-stop solution KN FreshChain Kuehne + Nagel satisfies the highest quality standards – all around the world.

Based on its experience and solution-oriented approach, Kuehne + Nagel continues to focus on supporting custo- mers with services tailored to their requirements. In a sea- freight market that is likely to remain volatile, Kuehne + Nagel offers reliability, planning security and added value.

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AIRFREIGHT FOCUSED. INNOVATIVE. GROWING.

The track record in airfreight speaks for itself: Volumes increased by 4.3 per cent in 2016 with 50,000 tonnes more shipped than in the previous year, in a market with growth only picked up in the fourth quarter. The excellent operational efficiency of this business unit is demonstrated by the increase in the EBIT-to-gross profit ratio from 29.3 per cent to 30.9 per cent.

This success is based above all on customer proximity, industry-specific know-how, industry solutions and inno- vative power. The Kuehne + Nagel airfreight specialists at over 300 sites worldwide understand and analyse the logistics challenges facing their customers from various industries and develop optimum services and solutions. As a result, in 2016 Kuehne + Nagel won numerous new businesses and concluded contract extensions. Growth above market average and productivity increases are lar- gely due to long-term strategic investments by Kuehne + Nagel in training of staff, development of new products and information technology.

An increasing number of customers worldwide are bene- fiting from KN FreshChain, the airfreight service for tem- perature-sensitive goods. Kuehne + Nagel’s specialised network covering all core markets for perishables is a key competitive advantage. 700,000 orders in 2016 testify to the leading market position that Kuehne + Nagel occupies with its KN EngineChain solution for production and spare parts logistics and maintenance of aircraft

engines. Customers from the aviation and aerospace industry value the seamless transparency and monitoring as per individual requirements along the entire supply chain. KN PharmaChain has become the benchmark for pharmaceutical logistics and is being continuously deve- loped. Real-time monitoring systems transmit humidity and shock levels as well as position and temperature across the entire logistics chain. The GxP and IATA CEIV Pharma certified network consists of 83 locations world- wide in airfreight alone, with more than 150 in total. In 2016, significant new business was gained in the auto- motive industry with an innovative service for shipping completely built-up units. The focus will continue to be on industry-specific product development in future.

Innovation has traditionally played an important part at Kuehne + Nagel. So it is no surprise that the company was the first logistics provider to establish a platform for digital quoting, booking and tracking of airfreight shipments with KN FreightNet. Internally, the “AirLOG” operational import software, which has now been imple- mented worldwide at all airfreight stations, is aiming at further process optimisation and efficiency gains.

It is likely that the international airfreight market will remain demanding with only moderate growth rates. Kuehne + Nagel will exploit growth opportunities by the sales of its industry-specific services and further imple- mentation of its innovation and digitalisation programme.

10

2016 PERFORMANCE

CHF million

TURNOVER 3,935

NET TURNOVER 3,347

GROSS PROFIT 964

EBITDA 315

EBIT 298

TONS '000 1,304

NUMBER OF OPERATING STAFF 5,734

million tons in 2016

1.3

BUSINESS UNITS

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11

tons per day

4,153

PERFORMANCE FIGURES

worldwide

NO.2

airfreight specialists

5,734

AIRFREIGHT

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12 MANAGEMENT BOARD

CREATING MUTUAL SUCCESS

of the Internet of Things and Industry 4.0 transparency, data and predictive analytics are decisive factors in the management and optimisation of complex supply chains. Through targeted investments at an early stage, Kuehne + Nagel has built up and expanded its technological infra- structure, customer interface systems and digital compe-tence. With KN FreightNet, the digital quoting, booking and tracking platform, Kuehne + Nagel set a new industry standard as early as 2014. The global Kuehne + Nagel index, gKNi, which is based on big data and predictive analytics, is a unique nowcasting tool opening up an entirely new customer base for Kuehne + Nagel. At the same time, supply chain processes can be predicted much earlier, more precisely and plans calibrated more efficiently.

Kuehne + Nagel’s overall aim remains to create measu- rable added value for customers from various industries by specialised solutions and profound industry know-how across all business units. This allows the company to make an active contribution to its customers’ success. With its agility in the markets and its claim to innovation and quality leadership in all areas, Kuehne + Nagel conti-nues to expand its position as one of the world’s leading logistics providers.

Yours sincerely, Dr. Detlef TrefzgerCEO

Ladies and gentlemen,

2016 was a very good year for the Kuehne + Nagel Group. The company’s customer-oriented strategy once again pro-ved effective in a demanding market environment marked by different dynamics. All business units and all regional organisations have contributed to a new record result with earnings of CHF 720 million. On behalf of the Manage-ment Board I would like to express our gratitude for this great achievement to all employees worldwide.

Kuehne + Nagel is committed to offer its customers tailor- made, scalable logistics solutions of the highest quality and planning reliability, which enables the company to grow faster than the market in all business units. This suc- cess can be attributed to all employees around the globe who pursue the company’s aims in a dedicated and moti- vated way and whose solution-oriented approach and implementation strength make the difference that matter for Kuehne + Nagel’s customers.

The skills required have been built up and systematically expanded within the company over years. Kuehne + Nagel will continue to invest in staff development and can offer a working environment which not only promotes entrepre-neurial spirit but also fosters creativity and networking worldwide.

State-of-the-art information technology allows Kuehne + Nagel to develop solutions for its customers that improve productivity in the supply chain even further. In the era

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From left to right:

MARTIN KOLBE, Information Technology

STEFAN PAUL, Overland

LOTHAR HARINGS, Human Resources

DR. DETLEF TREFZGER, CEO

MARKUS BLANKA-GRAFF, CFO

HORST JOACHIM SCHACHT, Seafreight

GIANFRANCO SGRO, Contract Logistics

YNGVE RUUD, Airfreight

13KUEHNE + NAGEL INTERNATIONAL AG

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14

PERFORMANCE FIGURES

overland specialists

million shipments in 2016

17.2

7,894

in Europe

NO.3

BUSINESS UNITS

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OVERLAND PIONEERING. RELIABLE. INTEGRATED.

Kuehne + Nagel’s overland business unit offers customers services that are not only reliable and secure but also pioneering – whether in the fields of groupage, less-than-truckload (LTL) and full truckload (FTL) or integrated into industry-specific supply chain solutions. The reach has been extended beyond Europe into the other world’s major economic regions. Through an acquisition in the United States in 2015, for instance, Kuehne + Nagel added intermodal activities to its product portfolio thereby expanding its offer for network customers.

Net turnover increased by 11.9 per cent in 2016 and gross profit improved by 7.3 per cent compared to the previous year. This favourable development can be attributed to the expansion of activities in and outside Europe, services for specific target groups and the consistent implemen- tation of initiatives to increase efficiency.

In the European groupage business Kuehne + Nagel operates over 3,500 regular line hauls per week. The new procurement process is differentiated by market segment and supports the expansion of long-term partnerships with selected transport providers. In the future, customers will be able to book groupage shipments online via the KN FreightNet platform as well. This innovation was pilo- ted in Germany in 2016 and the digital solution is due

to be introduced Europe-wide within the current business year. In the LTL and FTL segment, Kuehne + Nagel has been collaborating with Transporeon since September 2016 and will be using the Transporeon digital platform to cooperate and connect with carriers across Europe.The new process allows Kuehne + Nagel to increase truck- load factors, reduce environmental impact and improve efficiency for customers and partners. The platform solu- tion has already been introduced in France and Luxem-bourg.

Industry-specific solutions are of strategic importance in the overland business unit. Customised services are offered for fairs and sports events as well as for the oil and gas industry. Demand for these activities is steadily increasing as is that for the production logistics solution developed for the automotive industry. Orders are up particularly for KN PharmaChain, and its dedicated net- work is being fully utilised. The industry-specific solutions in the overland business reinforce Kuehne + Nagel’s integrated service offering.

In overland, Kuehne + Nagel will continue to develop industry-specific services with added value based on its stable transport network. Other digitalisation initiatives will benefit all customer segments.

2016 PERFORMANCE

CHF million

TURNOVER 3,130

NET TURNOVER 2,898

GROSS PROFIT 895

EBITDA 70

EBIT 28

NUMBER OF OPERATING STAFF 7,894

15OVERL AND

billion CHF net turnover in 2016

2.9

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CONTRACT LOGISTICS SCALABLE. FLEXIBLE. EFFECTIVE.

Kuehne + Nagel manages over 10 million square metres of logistics and warehousing space for its customers and optimises material and information flows along global supply chains. Demand for high value-added, integrated contract logistics concepts is rising on the back of trends such as logistics outsourcing and e-commerce. With its profound understanding of market and industry deve- lopments as well as customised and scalable solutions, Kuehne + Nagel is a preferred logistics partner, parti- cularly for globally operating companies with complex supply and distribution chains. Kuehne + Nagel is suc- cessfully implementing specialised end-to-end solutions for demanding industries such as automotive, e-commerce, high-tech, consumer goods, aviation and aerospace, pharmaceuticals and healthcare.

The business strategy of establishing itself as a long-term logistics partner of its customers and integral part of their supply chains is effective and has led to contract extensions and new business wins in all regions. Total net turnover in contract logistics in constant currencies grew by 5.7 per cent compared with the previous year. The increases in efficiency achieved by Kuehne + Nagel in its customers’ logistics processes are also reflected in its own ranks: An optimised product and service offering coupled with operational excellence led to substantially shorter implementation times for complex projects.

Due to state-of-the-art technologies and innovations contract logistics has become a crucial factor in global supply chains. Kuehne + Nagel supports its customers to further increase competitiveness through efficient IT systems and specialised software, a high level of automation and technology-driven service concepts. In addition, the deployment of intelligent agent systems or augmented reality technologies is being trialled in numerous pilot projects. A continuous process of customer and purpose-oriented technological refine- ment will drive Kuehne + Nagel’s innovative solutions for all types of companies and industries also in the future.

In 2016, Kuehne + Nagel expanded its global leading position in the field of integrated logistics by large- scale projects for renowned customers. In this segment, Kuehne + Nagel has specialised in complex end-to-end supply chain management solutions, which are managed via the global network of Logistics Control Towers and performed in cooperation with other Kuehne + Nagel business units. This one-stop offering not only increases transparency and efficiency in the supply chain but also optimises information flows between the participating partners. This allows Kuehne + Nagel to help its custo- mers to improve customer service, a decisive factor in a highly competitive market environment.

2016 PERFORMANCE

CHF million

TURNOVER 4,939

NET TURNOVER 4,466

GROSS PROFIT 3,275

EBITDA 260

EBIT 147

NUMBER OF OPERATING STAFF 35,866

16

billion CHF net turnover in 2016

4.5

BUSINESS UNITS

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17CONTRACT LOGISTICS

million sqm logistics and warehousing space

10

PERFORMANCE FIGURES

worldwide

NO.2

contract logistics specialists

35,866

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18

PATIENT-ORIENTED. PRECISE. POWERFUL.

KNPharmaChain

INDUSTRY-SPECIFIC SOLUTIONS

SENSITIVE FREIGHT

permanent temperature and humidity control

seamless monitoring and reporting

24/7

C/F

at the BIFA Cool Award 2016

NO.1

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19

KNFreshChain

SPECIALISED. CONTROLLED. COOL.

INDUSTRY-SPECIFIC SOLUTIONS

Specialised logistics is essential for many industries. At a very early stage, Kuehne + Nagel recognised the benefits of scalable, industry-specific solutions for glo- bally operating customers from trade and industry and invested in the development of appropriate structures. With profound industry knowledge, global supply chain experience and a worldwide network, Kuehne + Nagel is now best placed to develop and implement logistics solutions that offer added value for a range of different industries. Specialised teams, an efficient infrastructure and state-of-the-art IT systems ensure that the complex logistics requirements can be met to the highest customer satisfaction. All industry solutions guarantee compliance with the highest quality and safety standards along the entire supply chain.

KN FreshChain, the temperature-controlled handling, transport and warehousing services for perishables, or KN PharmaChain for temperature-sensitive pharma-ceutical and healthcare products are two much in demand industry solutions that Kuehne + Nagel has developed and integrated into its global logistics network. Technical industries such as aerospace are also reliant on integrated logistics solutions. With KN EngineChain Kuehne + Nagel offers a customised transport and warehousing service for production and spare parts logistics and the maintenance of aircraft engines. For demanding customers from the fashion industry, Kuehne + Nagel's KN FashionChain offers specific and operationally audited supply chain solutions.

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EVOLUTION. INNOVATION. TRANSFORMATION.

Digitalisation

20 PERSPECTIVES

Internet of ThingsArtificial Intelligence

DIGITAL EVOLUTION AT KUEHNE + NAGEL

Big DataPredictive Analytics

EfficiencyConnectivity

TECHNOLOGICAL DEVELOPMENTS

AUTOMATION OF PROCESSES AND

PLATFORMS

INNOVATIVE BUSINESS MODELS

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DIGITAL. EFFICIENT. DIRECT.

KNFreightNet

21

As in all industries digital evolution has started already in logistics as well, with data handling and supply chain optimisation becoming increasingly decisive. This has generated many opportunities for Kuehne + Nagel. Techno- logical development in general and process automation in particular are integral parts of the Kuehne + Nagel business strategy, with a clear focus on operational excellence and efficiency improvements for the benefit of the customers’ business models. Today, fast and smooth integration of customer data and systems is a key compe- titive advantage for Kuehne + Nagel. This requires high levels of data quality as well as globally standardised cutting-edge IT systems and interfaces that allow a seam- less connectivity. This “digital readiness” also forms the basis for Kuehne + Nagel’s ability to quickly launch new products and services.

Kuehne + Nagel was thus the first logistics company to provide a fully digitalised platform for quoting, book- ing and tracking air and seafreight shipments with KN FreightNet, providing customers with an efficient and direct link to Kuehne + Nagel’s operational systems.

This service is particularly used by small and medium-sized enterprises with regional and global demand as well as e-commerce platforms.

Kuehne + Nagel has taken a pioneering step in pre- dictive analytics and big data – the basis for the “gKNi” product which Kuehne + Nagel launched in late 2016. This cloud-based solution allows important indexes such as industrial production or trade balance to be generated for specific countries and industries up to 55 days earlier than the “street estimate”, based on global logistics data and predictive analytics. This product is attractive for the financial sector, where it can be used for portfolio deci- sions, but also for global industry customers who intend to further optimise their production and distribution planning, for example.

Kuehne + Nagel will continue to set the standard in driving digital development in the logistics industry through proprietary developments and in cooperation with leading, innovative technology companies as well as start-ups.

binding offer within seconds

1

3 STEPS ONLY

shipment status in real time

3

direct online booking

2

QUOTE

BOOK

TRACK

PERSPECTIVES

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22 EMPLOYEES

female : malein per cent

33 : 67

nations

> 120

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The commitment, professionalism and performance of all employees worldwide are the basis for the long-term success of the Kuehne + Nagel Group. Every day, around 70,000 employees ensure to fulfil and if possible to exceed the expectations of customers around the world, thereby reinforcing Kuehne + Nagel’s reputation as a reliable, competent and innovative logistics partner. Working together across more than 100 countries and cultures offers Kuehne + Nagel employees an inspiring work environment.

At all levels employees are offered a wide range of training and personal development opportunities. In 2016 for example, over 27,000 live training sessions took place. The possibility to refresh or increase know- ledge through computer-based training sessions (CBTs) was also taken: Over 210,000 CBTs were completed. The trainings focused on updating industry-specific knowledge, products, processes and IT as well as com- pliance. The Forwarder Programme launched in 2014 has become an integral part of professional training at Kuehne + Nagel. In 2016, several hundred young employees from over 30 countries were taught the theoretical content of the German apprenticeship in a six-month training programme and gained a certi-

ficate of professional qualification. Sophisticated leader- ship programmes offer training modules tailored to managers.

Another important element of Kuehne + Nagel’s human resource management is the ability to identify and secure prospective manpower requirements at an early stage. As part of its Global Talent Programme, in 2016 44 young people from all regions and business units were success-fully prepared for taking on key positions. With its inno- vative approach to employer branding, Kuehne + Nagel is addressing the challenges of recruiting external talent. Additionally, a global e-recruitment solution and exten- ding activities to include online platforms are making a positive contribution to identifying talent in a more targeted way and speeding up the recruitment process considerably.

Kuehne + Nagel is actively engaged with digital evolution in human resources. The focus areas include organisational development and work culture. Kuehne + Nagel is taking the opportunity provided by technological innovations to design a more efficient way of sharing knowledge glo- bally. Thus, interactive working is supported by digital working platforms.

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EMPLOYEES PROFESSIONAL. PASSIONATE. CREATIVE. employees worldwide

70,038

EMPLOYEES

AGE STRUCTURE

> 60 years

3 %30 – 44 years

46 %45 – 59 years

28%

15 – 29 years

23%

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SOCIAL RESPONSIBILITY –KUEHNE FOUNDATIONS SUSTAINABLE COMMITMENT.

The Kuehne Foundation, which was founded in Switzer-land in 1976, is renowned for its initiatives to promote academic teaching, further education, training and research in the fields of logistics and transport. It also supports medical, cultural and humanitarian projects. The Kuehne Foundation is operationally active and initiates almost all of the projects it funds. The sole donor of this public trust foundation, Prof. Dr. h. c. Klaus-Michael Kuehne, regards his commitment to quality and sustainability as an important part of his social responsibility as an entrepreneur.

Support in the field of logisticsThe foundation’s goal is to support and develop logistics as a scientific field. Logistics is facing major challenges: Digitalisation, globalisation and the call for more sus- tainability are creating new, complex interactions that require pro-active shaping and integrated thinking. The Kuehne Foundation connects research institutions that provide scientific supervision of new developments and supports further education of the current and upcoming generation of managers. The Kühne Logistics University (KLU), founded in Hamburg in 2010, promotes pionee-ring research and practice-oriented teaching in transport, global logistics and supply chain management. The Kuehne Foundation also supports academic chairs at the Federal Institute of Technology (ETH Zurich), WHU – Otto Beisheim School of Management, Vallendar, Berlin Institute of Technology (TU Berlin), Tongji University, Shanghai, the German Foreign Trade & Traffic Academy (DAV), Bremen, and other projects of further education in logistics.

Humanitarian logistics – HELPThe Kuehne Foundation launched its HELP programme in 2010 in response to the growing challenges around the humanitarian supply chain and logistics. In 2014, HELP Logistics AG was founded as a non-profit organisation in Schindellegi, Switzerland. Its goal is to improve effective-ness, efficiency and transparency in the logistics proces- ses of international emergency aid. HELP is currently operating in Africa, Asia-Pacific and the Middle East.

Medicine – Allergy Research and EducationAround the world, roughly one billion people are affected by allergic diseases and asthma. The Christine Kuehne Center for Allergy Research and Education (CK-CARE), founded in 2009, concentrates on funding research into allergic diseases as well as supporting training of specia- lists in order to make a focused and effective contribution to solving allergy-related problems. CK-CARE is a Davos- based association of leading international working groups.

Cultural projectsIn the field of culture, the Kuehne Foundations give support mainly to music and literature. In 2016, many concerts, operas and festivals in Switzerland, Germany and Austria were again funded. These include the Lucerne Festival, the Mecklenburg-Vorpommern Festival, the Salzburg Festival, the Hamburg State Opera, the 2nd Hamburg International Music Festival, the Baden-Baden Festival, Zurich Opera House, and the Music Summer on Lake Zurich as well as the Harbour Front Literature Festival in Hamburg.

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2016 PROMOTIONAL

FUNDINGPROJECTS

Culture

10 %Humanitarian

Logistics

9 %Medical Science

21%

Logistics

60%

KUEHNE FOUNDATIONS

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projects worldwide

million CHF promotional funding

22.5

65

25KUEHNE FOUNDATIONS

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Kuehne + Nagel International AG

Kuehne + Nagel House

P.O. Box 67

CH-8834 Schindellegi

Telephone +41 (0) 44 786 95 11

Fax +41 (0) 44 786 95 95

www.kuehne-nagel.com