kuehne & nagel luxembourg 2008

Kuehne+Nagel LuxembourgPress Conference <Eurohub Centre> Luxembourg

14th of October 2008

08/09/2008 p. 2• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> • p. 2

Agenda

I. Kuehne+Nagel Global Logistics Network

II. Kuehne+Nagel S.à r.l. Luxembourg

Global Logistics Network

08/09/2008 p. 3• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> •

Worldwide network - 850 locations in more than 100 countries

Integrated service portfolio – more than 53,000 employees

Over 7 million m2 warehousing space

The Global Logistics Network



The global logistics network is our strongest asset. Dedication, integration and innovation are at the heart of our business philosophy. Focused on our customers’ needs we provide integrated logistics solutions of outstanding quality and operational excellence – we are the extension of your business.

Mission Statement



Switzerland HeadquartersKuehne + Nagel

Today

Global LLS solutions Proven results Independent from 3PL

business Leveraged systems

infrastructure

Lead Logistics Solutions

No. 1 provider of global ocean freight services

Among top 5 global air freight providers

Over 2.6 Mio. TEU sea /1 Mio tons air in 2007

Sea and Air Logistics

Founded inBremen 1890

2007 turnover 21billion CHF(+15%)

2007 EBITDA 686 mio. CHF (+14%)

ContractLogistics

Among top 3 contract logistics providers

7 million m2 warehouse space across 58 countries

Industry specific solutions

Rail and Road Logistics

Among top 7 European providers

European Network of 38 countries

Over 1.5m shipments using 100 branches

General Introduction



Special ServicesLead Logistics SolutionsDrinks LogisticsProject TransportsOil & GasEmergency & ReliefHotel LogisticsForest ProductsFairs & Exhibitions

Insurance Brokerage

Sea & Air LogisticsSeafreight Airfreight

Road & Rail LogisticsRoadRail

Contract LogisticsWarehousingDistributionValue added services

Comprehensive Global Logistics Solutions



Global No. 1 in Seafreight

• Double-digit growth rates• Leading the industry with IT-based solutions• Strong partnerships with preferred carriers

Global Top 5 in Airfreight• Well positioned in the top league • Cargo 2000 Phase II certified (first mover!) • Strong partnerships with preferred airlines

Global Top 3 in Contract Logistics• Global infrastructure for global contract logistics coverage• Dedicated and shared warehousing & distribution management• Transportation management solutions

Top 7 in European Road & Rail Logistics • Focus on network services, LTL & FTL business• Pan-European coverage of 38 countries• Innovative intermodal solutions

Market Position



Customer References

FM

CG

= F

ast

Mov

ing

Con

sum

er G

oods

Industrial/Chemicals

Automotive/Aviation

High-Tech Retail FMCGPharma/

Healthcare



Benefits of a Partnership with Kuehne+Nagel

• Global network • Solutions for single and multi sites

• Shared or dedicated operations

• Performance guarantees based on proven standards

• Tailor-made solutions and added value services

• Optimized processes, latest technology and best practices

• Comprehensive supply chain analysis capabilities

• Financial stability - willingness and commitment to invest on behalf of customers

08/09/2008 p. 10• Kuehne+Nagel Luxembourg • Press Conference <Eurohub Centre> • p. 10

Agenda

I. Kuehne+Nagel Global Logistics Network

II. Kuehne+Nagel S.à r.l. Luxembourg

S.à r.l. Luxembourg


Background

• Present in Luxembourg since 1970

• 495 staff at 8 locations

• Head Office in L – Contern since 1996

• Biggest national / regional logistics provider

• Multi-lingual workforce > 18 nationalities

• Our activities: Seafreight, Airfreight, Contract Logistics, Road Logistics, European Competency Center for Lead Logistics



Geographical Location and Accessibility

LUX

• Strategically situated at the

Heart of Western Europe

• Close to major motorways

• Less than 7 km from

Cargo Airport “Lux-Findel”

Gateway to EU market:

App. 450 million consumers

300 km 70 mill. consumers





Last Five Year ResultsTurnover in Mio €

90.100 93.918

116.700

150.200

173.206162.000

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

20032004

20052006

2007

YTD 2008



Facts and FiguresTotal Manpower Development 2003 - 2008

290320

350380

420

495

0

100

200

300

400

500

600

20032004

20052006

20072008



Quality• ISO 9001 and 18001 certificates

Enviroment• ISO 14001 certificates

Safety & Health• OHSAS 18001 certificate

Airfreight• Cargo 2000 certificate

Customs• C-TPAT certificate

Pharmaceutical• GDP (GxP) certificate (LLS)

Quality Certificates



Globalization International procurement, production

and/or distribution networks, entry into new markets

Rationalized and changing procurement-, production, increased speed to marketReduced Product Lifecycles

New Technologies Global system requirements, end-to-end

supply chain visibility

Increased Customer Demand Requires flexibility, shorter lead times, more product variation, perfect order, new markets

Shareholder Value Orientation Pressure to reduce costs, competitive

advantage, focus on core competencies

Customers are striving for an integrated, optimized logistics operating model to drive significant improvements to supply chain performance

Trends Examples

Clear Business Trends


Kuehne+Nagel S.à r.l. Luxembourg



“The future success of Kuehne + Nagel’s Supply Chain and Lead Logistics Solutions will be based on IT and Process Excellence, a strong position in the Contract Logistics Market and the

global Kuehne + Nagel Forwarding Network”

Contract Logistics

„Forwarding-Packages“

Traditional Services„Point-to-Point-Forwarding & Simple Storage“

SCM/LLPSolutions

Va

lue

ad

ded

Ma

na

gem

en

t C

om

ple

xity


Strategy Corresponding to the Trend



Lead Logistics SolutionsWhat we provide as an LLP - How it Works

Customer Operations

CustomerSupply Chain

Management

Internal/ExternalProduction Operations

RegionalSales & Marketing

Warehousing Air TransportOcean Transport Trucking/Land TransportCompliance &

Documentation

• Orders• Demand Plans• Demand Forecasts• Status

• Demand Plans• Demand Forecasts• Status

• Orders• Forecast• Status

LLPManagement

Lead Logistics ProviderManagement of All Execution Activity

Single Point of Contact for SCM

• Shipments • Products

Order Status Events Compliance LocationInformation Coordination Mgmt

• Products• Delivery Status


September 2008 Kuehne + Nagel Lead

Logistics Solutions -

CONFIDENTIAL

Inbound“Supplier & Inventory

Management”

• Inbound Logistics Supply Management

• Upstream Transportation Mgt

• Solution Outsource

• Virtual Supply Logistics

• Inventory Planning & Demand Replenishment

Outbound“4PL Solutions”

• Supply Chain Design • Design / Simulation

• Supply Chain Execution• Planning and Execution

• Settlement• Business Support

• Supply Chain Monitoring• Continuous Improvement

• Critical Service Logistics • Spare Parts Distribution

• Last Mile Execution• Live Service Technician Updates

• Reverse Logistics• RMA Mgt

• Cartridge Collection Program• Waste Mgt (WEEE)

Inbound Supply

Production

OutboundDistribution

Storage

Supplier

Supplier

Supplier

Merge in TransitX-docking

CustomerPlant (s)

Spare Part Services

End-Consumer

(s)

Reverse Logistics

DistributionCentre (s)

ReceivingCustomer (s)

Supply Chain Technology Solutions• “Software As A Solution” - Warehouse/Order/Transportation Solution Design, Implementation and Support

Service Parts & Reverse“Aftermarket Management”

Kuehne + Nagel Lead Logistics Solutions Scope of Lead Logistics Solutions – Product Segments


Airfreight



Airfreight European HUB Centre

lux airport • 5th largest air cargo hub in

Europe

• Home base of Cargolux, European’s leading ALL Freighters Airline

• Offers direct flights from/to all continents



Inbound Flights into LUX - HUB Hand over of shipments into KN Local Network Dedicated Team at every Entry Point (Airfreight Office) Handling of volumes for destination country

Direct Shipments via LUX Dedicated operation Team located at LUX Airport / 7-24-365 Hand over of shipments in Lux into KN European Distribution Network

DestinationAirport

Origin(OEM or

CFS)

DestinationGateway

Airport-HUB

Consignee

HandoverUplift /

DispatchInbound LUX

RegionalCross Dock /

MITDelivery

CountryCross Dock /

MIT

DC

IDS E2E ShipmentHigh-Tech Network – Process Flow


Contract Logistics


Contract Logistics



Facilities:• 8 Warehouse Locations

• Multi-User Warehouse

• Bonded area

Key Figures:• WMS + Visibility

• 185 employees in 2008

Location Space in Sqm

Contern 30,000

Airport 4.900

Others 28,600

Total Warehouse Space

63,500

Extension 10/2009 40,000

Contract LogisticsKey Figures



Real Estate StrategyExpansion Strategy

Contern II40,000 sqm

Contern I 30,000 sqm



Real Estate StrategyNew Shared Warehouse Contern II

40,000 sqm building 72 loading doors (hydraulic

levelers) Sprinkler system Mezzanine floor

• Handling

• Office Available + Q4/2009



Lead Logistics + Contract Logistics Focus

Global economy pressure: Optimization of Customers Supply Chains Reduction of logistics costs spent

• Centralization / consolidation Distribution Centres• Reduction on inventories• Reduction of Lead Time E2E• Reduction of Ton/km > Co2

KN Lux Focus



Competitive Edge: Eurohub Luxembourg

• Central European geographical location

• Airport + servicing carriers (Cargolux, etc… )

• Multi – lingual population

• Cross – Border/ Regional Employees

• Modern infra structure incl. Intermodal Terminal

• Supporting Administration Institutions

• Tax + VAT incentive Fiscal Representation

• Logistic friendly Lux - Government



Conclusion

Lux-Government Focus: High Value Logistics as incremental industry segment

Benefiting parties:• Lux connecting Cargo Airlines• Airport + Handling Partners• Logistics Industry Luxembourg• Employment market• Tax-Income budget• Image of G. D. Luxembourg

All parties can benefit

Cooperate


The Anchor Principles

• Act as an extension of your customers' business.

• Improve, constantly.

• Collaborate.

• Keep your promises.

• Be accountable.

• Control costs.

• Respect others.

• Have fun.

kuehne & nagel luxembourg 2008

Documents

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nagel global network

agenda kuehne

contract logistics providers

network services

preferred airlines global

global air freight providers

worldwide network