kuehne + nagel international ag - bcp · kuehne + nagel 11.8% 17.7% 11.3% company sea air road...

Kuehne + Nagel International AG

ZfU-Seminar mit Prof. Robert S. KaplanOctober 27, 2011 in Opfikon-Glattbrugg

Gerard van Kesteren CFO

Agenda

ZfU-Seminar mit Prof. Kaplan - 27.10.11

What about Kuehne + Nagel 2 - 9

Strategy Go-for-Growth / Possible Scenarios 10 - 15

Controlling Tool Kit 16 - 21

Slide 2

Global Logistics Network

Over 60’000 employees

900 locations in more than 100 countries

Ownership of the global network

Non-asset based

Over 60’000 employees

ZfU-Seminar mit Prof. Kaplan - 27.10.11 Slide 3

Success Factors for a Leading Global Position

Human Resources –attractive remuneration programme / Employee Share Purchase and Option Plan

Information Technology –standardised IT systems / resulting in business intelligence

Finance –globally standardised systemglobally standardised system

Ownership of the Global Network / 900 locations

Seafreight

No. 1Contract Logistics

No. 3Airfreight

No. 3Road & Rail Logistics

No. 6


Sector PositioningG

loba

l Sco

pe

high

67

89

?

Kuehne + Nagel and its most important


historical

estimated

Service Portfolio

Glo

bal S

cope

low

aver

age

12

34

5

narrow medium wide

1 2 3 4 5 6 7 8 9

?

?

important competitors count onglobal, integrated Logistics services.

Slide 5

Highlights 9-Months 2011

• Strong volume growth above market in all business units:

• Material negative forex impact of 14.5%

Kuehne+Nagel Market- Seafreight 11.4% 5%- Airfreight 14.5% 0%- Road&Rail 19.4% 3%- Contract Logistics 7.9% 2%

• Lower Seafreight margins per unit due to low rate environment

• Airfreight margin per unit stable, despite negativ forex impact

• Road & Rail Logistics: Acquisition Eichenberg Group, Brazil

• Reduction of idle space in Contract Logistics from 8.4% last year to 5.1% September 2011

• Stable 3.6% working capital intensity

• ROCE sustainable at 54%

• Effective tax rate 21% sustainable


Income Statement 9-Months

in CHF million As %

Invoiced turnover 15'178 16'707 1'529 (2'109) (13.9%) 14'598 (580)

Gross profit 4'453 5'016 563 (636) (14.3%) 4'380 (73)

Gross profit margin 29.3% 30.0% 36.8% 30.0%

Total expenses (3'707) (4'184) (477) 532 14.4% (3'652) 55

EBITDA 746 832 86 (104) (13.9%) 728 (18)

VarianceCHF million 2010Actual

2011w ith 2010 fx rates

VarianceForex Impact 2011

Actual


EBITDA margin 4.9% 5.0% 5.6% 5.0%

EBIT 571 654 83 (82) (14.4%) 572 1

EBIT margin 3.8% 3.9% 5.4% 3.9%

EBT 572 661 89 (82) (14.3%) 579 7

EBT margin 3.8% 4.0% 5.8% 4.0%

Net earnings for the period 449 519 70 (65) (14.5%) 454 5

Slide 7

Competitive Environment 1st Semester 2011

Market 6.0% <2.0% 4.0%

Kuehne + Nagel 11.8% 17.7% 11.3%

Company Road & RailSea Air


Kuehne + Nagel 11.8% 17.7% 11.3%

DHL 0.2% 2.4% n.a.

DB Schenker 4.6% (0.6%) 20.7%

Panalpina 2.5% (2.2%) n.a.

DSV 5.1% 9.2% 12.0%

Share Performance

100

120

140

160

Gerard van KesterenCFO

0

20

40

60

80


Agenda





Slide 10

Strategy „Go for Growth“ - Update

Development of industry specific solutions

Profitable Integrated Services through IT Leadership

Development of European Road & Rail Network

� Development of the network

Continuation of global Expansion

� Focus on China, India, Brazil and Colombia

Profitable Growth

(+16% YTD*)

* 09/2011 YTD profit after tax, excl. forex


20142009

Execution of StrategyBusiness development in the next five years

Revenue CHF 17 bn CHF 30/40 bn

Staff FTE 55‘000 FTE 80-90‘000

Seafreight TEU 2.5 mn TEU >5.0 mn

Airfreight Tons 0.8 mn Tons 1.3 mn

Road & Rail CHF 2.5 bn 100% turnover increase

Contract Logistics CHF 4.3 bn 50% turnover increase

TOP 1

TOP 3

TOP 3*

TOP 3

* in Europe

Slide 12ZfU-Seminar mit Prof. Kaplan - 27.10.11

Different Scenarios for the Global Economy

Sea: 6%

Global GDP Global Trade Logistics Industry

I. Growth

II. Stagnation

III. Recession

approx. 3% approx. 7%Sea: 6%

Air: 5%

CL/R&R: GDP

+/-0% in developed markets; slower growth in emerging markets

slower growth 0%

Negative growth in developed markets and significant drop in emerging markets

negative growth

(10%)


How to manage Business in a volatile Environment

I. Growth II. Stagnation III. Recession

Direct Manpower

Administration

ITIT

Sales

Capex

M&A

“Go for Growth”

Contract Logistics Focus on multinational customers and profitability improvement


Impact 10% Volume Reduction K+N

in CHF million

Invoiced Turnover 14'598 (1'460) 13'138

Gross Profit 4'398 (438) 3'960

"left"YTD

September 2011

10% volume reduction


Gross Profit 4'398 (438) 3'960

Manpower (2'505) - (2'505)

Other operations (1'147) - (1'147)

EBITDA 728 (438) 290

EBIT 572 (438) 134

PAT 457 (346) 111

Agenda





Slide 16

Controlling Tool Kit: “Go for Growth” – Return on Investment

Strong Sales Effort and Efficiency

Improvement for Growth

� Outset: 250 legal entities in over 100 countries managed via 6’000 profit centers

� Monthly reporting on 5th working day of the following month for all profit center managers – globally

� Full visibility due to single, standardised reporting and controlling

Key Elements and Benefits of Kuehne + Nagel’s Tool Kit

Financial and Operational Controlling

Strong Operational

Capabilities and Know-How

� Full visibility due to single, standardised reporting and controlling platform

� Great flexibility of system. Data available:

per Business Unit(BU)

per Geography

per Trade-Lane and Product

per Industry Vertical

per Customer(across BUs)

per Salesperson


Example Controlling Tool Kit: Trade Lane Analysis

per Trade-Lane and Product

Investment:

� Trade lane know-how (24 specialists hired)

� Product know-how (44 specialists hired)

Example

Result: Profitable growth (volume growth, stable margin per unit)

Controlling:

� Return on investment � volume growth/GP

� Tools: Vol/GP/GP per unit report by trade lane (air/sea: +120.000 port to port: country by country 12.000)


Example Controlling Tool Kit: Sales Investment

per Salesperson

Investment:

� + CHF 300 million Sales cost (+11% 2011/10)

� 300 additional sales executives 1st half 2011 (+ 300 targeted for 2nd half)

Example

Result: Contributing double digit organic growth in Air and Sea

Controlling:

� Return on investment � TO/GP/Volume growth

� Tools: Performance by sales executive� Activities (KPI’s)

� TO/GP/volume contribution per customer


Detailed Budget (time horizon 15 months!) cancelled

Rolling Forecast concept introduced based on 3 months

Changes implemented

months

Monthly review calls with Regional Management

Financial function clear Nr. 2


Q&A


Thank you for your attention.

Disclaimer

Investing in the shares of Kuehne + Nagel Internati onal AG involves risks. Prospective investors are strongly requested to consult their investment advisors and tax advisors prior toinvesting in shares of Kuehne + Nagel International AG.This document contains forward-looking statements which involve risks and uncertainties. Thesestatements may be identified by such words as “may”, “plans”, “expects”, “believes” and similarexpressions, or by their context. These statements are made on the basis of current knowledge andassumptions. Various factors could cause actual future results, performance or events to differ materiallyfrom those described in these statements. No obligation is assumed to update any forward-lookingstatements. Potential risks and uncertainties include such factors as general economic conditions, foreignstatements. Potential risks and uncertainties include such factors as general economic conditions, foreignexchange fluctuations, competitive product and pricing pressures and regulatory developments.The information contained in this document has not been independently verified and no representation orwarranty, 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 thispresentation is subject to change without notice, it may be incomplete or condensed, and it may notcontain all material information concerning the Kuehne + Nagel Group. None of Kuehne + NagelInternational AG or their respective affiliates shall have any liability whatsoever for any loss whatsoeverarising 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 StatesSecurities Act of 1933, as amended. Kuehne + Nagel International AG securities may not be offered orsold to anyone in the United States absent such registration, except pursuant to an appropriate exemptionfrom registration. There will be no public offering of Kuehne + Nagel International AG securities in theUnited States.


kuehne + nagel international ag - bcp · kuehne + nagel 11.8% 17.7% 11.3% company sea air road...

Documents