Kuehne + Nagel International AG

Transcription

1 Kuehne + Nagel International AG ZfU-Seminar mit Prof. Robert S. Kaplan October 27, 2011 in Opfikon-Glattbrugg Gerard van Kesteren CFO

2 Agenda What about Kuehne + Nagel 2-9 Strategy Go-for-Growth / Possible Scenarios Controlling Tool Kit ZfU-Seminar mit Prof. Kaplan Slide 2

3 Global Logistics Network Over employees 900 locations in more than 100 countries Ownership of the global network Non-asset based ZfU-Seminar mit Prof. Kaplan Slide 3

4 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 system Ownership of the Global Network / 900 locations Seafreight No. 1 Airfreight No. 3 Road & Rail Logistics No. 6 Contract Logistics No. 3 ZfU-Seminar mit Prof. Kaplan Slide 4

5 Sector Positioning Global Scop pe high low average ?? Kuehne + Nagel and its most important competitors count on global, integrated Logistics services. historical estimated narrow medium wide Service Portfolio ZfU-Seminar mit Prof. Kaplan Slide 5

6 Highlights 9-Months 2011 Strong volume growth above market in all business units: Kuehne+Nagel Market - Seafreight 11.4% 5% - Airfreight 14.5% 0% - Road&Rail 19.4% 3% - Contract Logistics 7.9% 2% Material negative forex impact of 14.5% 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 ZfU-Seminar mit Prof. Kaplan Slide 6

7 Income Statement 9-Months CHF million 2010 Actual 2011 w ith 2010 fx rates Variance Forex Impact 2011 in CHF million As % Actual Variance Invoiced turnover 15'178 16'707 1'529 (2'109) (13.9%) 14'598 (580) Gross profit 4'453 5' (636) (14.3%) 4'380 (73) Gross profit margin 29.3% 30.0% 36.8% 30.0% Total expenses (3'707) (4'184) (477) % (3'652) 55 EBITDA (104) (13.9%) 728 (18) EBITDA margin 4.9% 5.0% 5.6% 5.0% EBIT (82) (14.4%) EBIT margin 3.8% 3.9% 5.4% 3.9% EBT (82) (14.3%) EBT margin 3.8% 4.0% 5.8% 4.0% Net earnings for the period (65) (14.5%) ZfU-Seminar mit Prof. Kaplan Slide 7

8 Competitive Environment 1 st Semester 2011 Company Sea Air Road & Rail Market 6.0% <2.0% 4.0% 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% ZfU-Seminar mit Prof. Kaplan Slide 8

9 Share Performance Gerard van Kesteren CFO ZfU-Seminar mit Prof. Kaplan Slide 9

10 Agenda What about Kuehne + Nagel 2-9 Strategy Go-for-Growth / Possible Scenarios Controlling Tool Kit ZfU-Seminar mit Prof. Kaplan Slide 10

11 Strategy Go for Growth - Update Development of industry specific solutions Integrated Services through IT Leadership Continuation of global Expansion Focus on China, India, Brazil and Colombia Profitable Growth (+16% YTD*) Development of European Road & Rail Network Development of the network * 09/2011 YTD profit after tax, excl. forex ZfU-Seminar mit Prof. Kaplan Slide 11

12 Execution of Strategy Business development in the next five years Revenue CHF 17 bn CHF 30/40 bn Staff FTE FTE Seafreight TEU 2.5 mn TEU >5.0 mn TOP 1 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 ZfU-Seminar mit Prof. Kaplan TOP 3 TOP 3 * TOP 3 * in Europe Slide 12

13 Different Scenarios for the Global Economy Global GDP Global Trade Logistics Industry I. Growth approx. 3% approx. 7% Sea: 6% Air: 5% CL/R&R: GDP II. Stagnation +/-0% in developed markets; slower growth in emerging markets slower growth 0% III. Recession Negative growth in developed markets and significant drop in emerging markets negative growth (10%) ZfU-Seminar mit Prof. Kaplan Slide 13

14 How to manage Business in a volatile Environment Direct Manpower Administration I. Growth II. Stagnation III. Recession IT Sales Capex M&A Go for Growth Contract Logistics Focus on multinational customers and profitability improvement ZfU-Seminar mit Prof. Kaplan Slide 14

15 Impact 10% Volume Reduction K+N in CHF million YTD September % volume reduction "left" Invoiced Turnover 14'598 (1'460) 13'138 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 ZfU-Seminar mit Prof. Kaplan Slide 15

16 Agenda What about Kuehne + Nagel 2-9 Strategy Go-for-Growth / Possible Scenarios Controlling Tool Kit ZfU-Seminar mit Prof. Kaplan Slide 16

17 Controlling Tool Kit: Go for Growth Return on Investment Key Elements and Benefits of Kuehne + Nagel s Tool Kit Strong Sales Effort and Efficiency Improvement for Growth Financial and Operational Controlling Outset: 250 legal entities in over 100 countries managed via 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 platform Great flexibility of system. Data available: per Business Unit (BU) per Geography per Trade-Lane and Product Strong Operational Capabilities and Know-How per Industry Vertical per Customer (across BUs) per Salesperson ZfU-Seminar mit Prof. Kaplan Slide 17

18 Example Controlling Tool Kit: Trade Lane Analysis Example per Trade-Lane and Product Investment: Trade lane know-how (24 specialists hired) Product know-how (44 specialists hired) Controlling: Return on investment volume growth/gp Tools: Vol/GP/GP per unit report by trade lane (air/sea: port to port: country by country ) Result: Profitable growth (volume growth, stable margin per unit) ZfU-Seminar mit Prof. Kaplan Slide 18

19 Example Controlling Tool Kit: Sales Investment Example per Salesperson Investment: + CHF 300 million Sales cost (+11% 2011/10) 300 additional sales executives 1 st half 2011 (+ 300 targeted for 2 nd half) Controlling: Return on investment TO/GP/Volume growth Tools: Performance by sales executive Activities (KPI s) TO/GP/volume contribution per customer Result: Contributing double digit organic growth in Air and Sea ZfU-Seminar mit Prof. Kaplan Slide 19

20 Changes implemented Detailed Budget (time horizon 15 months!) cancelled Rolling Forecast concept introduced based on 3 months Monthly review calls with Regional Management Financial function clear Nr. 2 ZfU-Seminar mit Prof. Kaplan Slide 20

21 Q&A ZfU-Seminar mit Prof. Kaplan Slide 21

22 Thank you for your attention.

23 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. ZfU-Seminar mit Prof. Kaplan Slide 23