Kuehne + Nagel International AG Analyst Conference Call Half-Year 2014 Results. July 14, 2014 (CET 14.00) Schindellegi, Switzerland

Transcription

1 Kuehne + Nagel International AG Analyst Conference Call Half-Year 2014 Results (CET 14.00) Schindellegi, Switzerland

2 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. p. 2

3 Agenda Overview Half-Year 2014 Operating Review Financial Review Outlook Appendix p. 3

4 Strategy: Customer Proximity, Solutions and Process Optimisation Organisation Focus Efficiency Growth Foreign Exchange Productivity Customer proximity Market adaptability Seamless interaction Tailored solutions Customer retention Innovation/R&D Continuous process optimisation Network re-engineering IT solutions p. 4

5 Overview Half-Year 2014 Results - Kuehne + Nagel Group Net turnover Gross Profit EBIT in CHF million in CHF million in CHF million + 4.1% + 3.1% % (0.6)% (0.2)% + 8.2% H1 H H cc H1 H H cc H1 H H cc Net turnover growth of 4.1% in cc 1 Gross Profit increased by 3.1% in cc EBIT Profitability improved by 12.8% in cc 1 cc (constant currencies) p. 5

6 Income Statement Growth Impacted by Currency CHF million Q1 Q2 YTD HY Q Q2 YTD HY Variance Variance in % 2014/ Q1 Q2 2014/ Growth Forex Net Turnover 4,182 4,368 8,550 4,127 4,373 8,500 (50) (55) 5 (0.6%) 4.1% (4.7%) Gross Profit 1,537 1,575 3,112 1,532 1,575 3,107 (5) (5) - (0.2%) 3.1% (3.3%) Gross Profit margin 36.8% 36.1% 36.4% 37.1% 36.0% 36.6% EBITDA % 8.8% (4.3%) EBITDA margin 5.2% 5.7% 5.5% 5.7% 5.8% 5.7% EBIT % 12.8% (4.6%) EBIT margin 4.0% 4.5% 4.3% 4.6% 4.7% 4.7% EBT % 12.7% (4.6%) EBT margin 4.1% 4.6% 4.3% 4.7% 4.8% 4.7% Earnings for the period % 12.8% (4.5%) Gross Profit growth in cc % EBITDA growth in cc + 8.8% Earnings for the period growth in cc %, showing high operating leverage Material negative foreign currency translation impact of 4.5% on the earnings for the period 1 cc (constant currencies) p. 6

7 Development of Volumes Seafreight [TEU] 000 Volume increase of 8.2% yoy Airfreight [TON] 000 Volume increase of 3.9% yoy Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 FTE total Group ,510 72,608 71,335 70,785 72,626 72,036 Q1 Q2 Q3 Q YTD Volumes YTD Volumes p. 7

8 EBIT per Business Unit - Half-Year 2014/ Business Units (in CHF million) HY1 HY HY cc 1 Seafreight Airfreight Overland (5) Contract Logistics Kuehne + Nagel cc (constant currencies) p. 8

9 Agenda Overview Half-Year 2014 Operating Review Financial Review Outlook Appendix p. 9

10 Seafreight p. 10

11 Seafreight Performance of Business Unit Income Statement in CHF million HY1 HY Variance 2014/ Growth Forex Turnover 4,549 4,462 (1.9%) 3.9% (5.8%) Gross Profit (2.1%) 3.5% (5.6%) EBITDA (3.8%) 1.0% (4.8%) EBIT (4.6%) - (4.6%) EBIT in % of GP 29.9% 29.1% 1,100 1, ,000 TEU, CHF Q Q Q Q1 Q2 Q3 Q4 Q Q in % TEU,000 Conversion Rate in % GP/TEU in CHF Conversion Rate in % Highlights HY Gross Profit increase of 3.5% (in cc 1 ) EBIT stable (in cc) Volume growth of 8.2% Conversion Rate at 29.1% 1 cc (constant currencies) GP/TEU in CHF GP/TEU in USD HY HY p. 11

12 Foreign Currency Impact Monthly average exchange rate USD/CHF EUR/USD Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14 Jun 14 June Variance June Translation impact USD/CHF % Pricing impact Freight in USD EUR/USD EUR % Demonstrates the impact of USD/CHF exchange rate development in the consolidation (translation of functional currency to reporting currency) Demonstrates the price impact of USD based Seafreight business in non-usd entities, e.g. Euro (translation of foreign currency transaction to functional currency) Total -9.2% Kuehne + Nagel impact - Seafreight GP/TEU in CHF % 341 p. 12

13 Airfreight p. 13

14 Airfreight - Performance of Business Unit Income Statement in CHF million HY1 HY Variance 2014/ Growth Forex Turnover 2,058 2,033 (1.2%) 4.7% (5.9%) Gross Profit (0.7%) 5.0% (5.7%) EBITDA % 11.3% (5.7%) EBIT % 17.3% (6.4%) EBIT in % of GP 24.9% 27.8% Tons '000 Conversion Rate in % GP/100kg in CHF Conversion Rate Highlights HY Strong development of profitability Volume growth of 3.9% EBIT increased by 17.3% (in constant currencies) Conversion Rate of 27.8% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 CHF in % 000 Tons, p. 14

15 Overland p. 15

16 Overland - Performance of Business Unit Income Statement in CHF million HY1 HY Variance 2014/ Growth Forex Net Turnover 1,396 1, % 5.5% (4.0%) Gross Profit % 3.3% (2.0%) EBITDA % 111.8% (5.9%) EBIT (5) % 440.0% (20.0%) EBITDA / Net Turnover Margin 1.2% 2.5% EBIT / Net Turnover Margin (0.4%) 1.1% EBIT / GP Margin (1.1%) 3.5% EBIT Highlights HY (3) (1.7) (0.8) (6) (1.3) (0.6) (4) EBIT/Net turnover margin Net Turnover increased by 5.5% (in cc 1 ) Gross Profit increased by 3.3% (in cc) Significant improvement of profitability (8) (13) (12) (9) In MCHF, in % Q Q Q Q1 Q2 Q3 Q4 Q Q cc (constant currencies) p. 16

17 PowerPoint Presentation Contract Logistics Speaker Name Contract Logistics p. 17

18 Contract Logistics - Performance of Business Unit Income Statement in CHF million HY1 HY Variance 2014/ Growth Forex Net Turnover 2,086 2, % 4.5% (2.4%) Gross Profit 1,555 1, % 2.3% (1.9%) EBITDA % 5.1% (1.7%) EBIT % 9.4% - EBITDA / Net Turnover Margin 5.6% 5.7% EBIT / Net Turnover Margin 3.1% 3.3% In MCHF, in % Q Q Q Q1 Q2 64 Q3 72 Q4 57 Q Q EBITDA EBITDA/ Net Turnover Margin Highlights HY Increase of Net Turnover by 4.5% (in cc 1 ) Increase of Gross Profit by 2.3% (in cc) Increase of EBITDA by 5.1% (in cc) EBIT improved by 9.4% 1 cc (constant currencies) p. 18

19 Agenda Overview Half-Year 2014 Operating Review Financial Review Outlook Appendix p. 19

20 Financial Review - Group Key Data Financial Overview HY1 Financial targets unchanged CHF million 2014 Net turnover 8,550 8,500 Gross Profit 3,112 3,107 EBITDA Net earnings for the period EPS (basic) in CHF Total Assets 6,146 5,998 Equity 2,294 2,140 Equity % of Total Assets 37.3% 35.7% Cash & Cash Equivalents, net Operational Cash Flow Capex Profitability CAPEX Working Capital Cash Tax Conversion rate (EBIT/GP) in Seafreight 30%+, in Airfreight 25%+ Estimate at approx. CHF 190 mio (: CHF 181 mio) Target to maintain working capital intensity at % Emphasis on safeguarding a high cash position Confirm sustainable effective tax rate around 21-22% p. 20

21 Financial Review - Balance Sheet CHF million 31 December 30 June December 30 June 2014 Assets Property, plant and equipment 1,151 1,150 Goodwill Liabilities and equity Equity attributable to the equity holders of the parent company 2,537 2,125 Other intangibles Non-controlling interests Others Total equity 2,558 2,140 Non-current assets 2,133 2,133 Non-current liabilities Trade payables 1,362 1,317 Trade receivables 2,426 2,599 Accrued trade expenses / deferred income Cash and cash equivalents 1, Bank and other interest-bearing liabilities Others Others Current assets 4,241 3,865 Current liabilities 3,253 3,267 Total assets 6,374 5,998 Total liabilities and equity 6,374 5,998 p. 21

22 Financial Review - Cash Flow Half-Year CHF million 2014 Variance Operational cash flow Changes in working capital (115) (205) (90) Income taxes paid (105) (126) (21) Cash flow from operating activities (86) Cash flow from investing activities (61) (65) (4) Cash flow from financing activities (435) (735) (300) Exchange difference on cash and cash equivalents (1) (1) - Increase/(decrease) in cash and cash equivalents (243) (633) (390) Cash and cash equivalents at the beginning of the period, net 1,058 1, Cash and cash equivalents at the end of the period, net (206) p. 22

23 Financial Review - Working Capital Development CHF million June Dec March 2014 June 2014 Variance June 14 vs. June 13 Trade receivables & Work in progress 2,867 2,806 2,879 2,986 (119) Trade payables & Accrued trade expenses (2,120) (2,148) (2,061) (2,149) 29 Net Working Capital (90) KPI's: Working Capital Intensity 3.6% 3.1% 4.1% 4.0% 0.4% DSO (1.5) DPO (0.6) p. 23

24 Outlook Volume Development 2014 Business Unit Market - Actual Kuehne + Nagel HY Actual Market Kuehne + Nagel Market Estimate Kuehne + Nagel Seafreight [TEU] + 2 to 3 % + 3 % + 3 to 4 % + 8% + 4 to 5 % 1.5 x Market Airfreight [Ton] 0 % + 4 % + 2 to 3 % + 4% + 2 to 4 % 1.5 x Market Overland [Net turnover] In cc 1 0 to -2 % - 3 % + 1 to 2 % + 6% + 1 to 3 % Market Contract Logistics [Net turnover] In cc + 2 % + 5 % + 2 to 3 % + 5 % + 2 to 3 % 2 x Market 1 cc (constant currencies) p. 24

25 Thank you! p. 25

26 Appendix

27 Upcoming Events September 17, 2014 Capital Market Day, London October 13, 2014 Nine-months 2014 results February 25, 2015 Full-year 2014 results April 13, 2015 Three-months 2015 results May 5, 2015 Annual General Meeting May 12, 2015 Dividend payment for 2014 July 13, 2015 Half-year 2015 results October 12, 2015 Nine-months 2015 results p. 27

28 Development Main Exchange Rates vs. CHF Income Statement (average rates) Full Year HY 1 Impact Variance Net % Earnings Euro (0.6%) US Dollar (4.9%) (4.6%) British Pound % p. 28

29 Quarter over Quarter HY1 CHF million 1. Seafreight A) Income Statement Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Turnover 2,154 2,308 4,462 2,236 2,313 4,549 (3.7) (0.2) (1.9) (82) (5) (87) Net expenses for services incl. duties & taxes (1,835) (1,982) (3,817) (1,909) (1,981) (3,890) +3.9 (0.1) (1) 73 Gross Profit (2.4) (1.8) (2.1) (8) (6) (14) Opex (221) (224) (445) (226) (225) (451) EBITDA (3.0) (4.7) (3.8) (3) (5) (8) Depreciation and Amortisation (6) (6) (12) (5) (6) (11) (20.0) - (9.1) (1) - (1) EBIT (4.2) (5.0) (4.6) (4) (5) (9) B) KPI EBIT / GP conversion ratio 28.8% 29.4% 29.1% 29.4% 30.4% 29.9% Volume (TEU's '000) , , GROSS PROFIT (8.7) (10.2) (9.5) (34) (37) (36) EXPENSES CHF per TEU (253) (231) (242) (276) (254) (264) EBIT (9.6) (12.7) (12.4) (11) (14) (14) 2. Airfreight A) Income Statement / Change in % 2014 / Change in mchf Turnover 1,002 1,031 2,033 1,011 1,047 2,058 (0.9) (1.5) (1.2) (9) (16) (25) Net expenses for services incl. duties & taxes (783) (811) (1,594) (792) (824) (1,616) Gross Profit (1.3) (0.7) - (3) (3) Opex (151) (157) (308) (160) (158) (318) EBITDA (3.1) (2) 7 Depreciation and Amortisation (6) (3) (9) (6) (8) (14) EBIT B) KPI EBIT / GP conversion ratio 28.3% 27.3% 27.8% 24.2% 25.6% 24.9% Volume (TON's '000) GROSS PROFIT (1.3) (7.4) (3.8) (1) (6) (3) EXPENSES CHF per 100kg (55) (54) (55) (59) (60) (59) EBIT p. 29

30 Quarter over Quarter HY1 CHF million 3. Overland A) Income Statement B) KPI Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Turnover , , (0.8) (6) 11 Net expenses for services incl. duties & taxes (529) (547) (1,076) (516) (555) (1,071) (2.5) +1.4 (0.5) (13) 8 (5) Gross Profit Opex (213) (214) (427) (219) (220) (439) EBITDA Depreciation and Amortisation (9) (10) (19) (11) (11) (22) EBIT (9) 4 (5) Change in Net Turnover, excluding FX impact 6.9% 4.3% 5.5% (1.5%) (4.4%) (3.1%) EBITDA / Turnover 1.6% 2.9% 2.3% 0.3% 1.9% 1.1% EBIT / Turnover 0.4% 1.7% 1.0% (1.2%) 0.5% (0.3%) 4. Contract Logistics A) Income Statement B) KPI 2014 Turnover 1,119 1,205 2,324 1,110 1,150 2, Net expenses for services incl. duties & taxes (350) (413) (763) (340) (365) (705) (2.9) (13.2) (8.2) (10) (48) (58) Gross Profit , ,555 (0.1) (1) 7 6 Opex (712) (728) (1,440) (713) (725) (1,438) +0.1 (0.4) (0.1) 1 (3) (2) EBITDA Depreciation and Amortisation (24) (27) (51) (28) (25) (53) (8.0) (2) 2 EBIT Change in Net Turnover, excluding FX impact 1.7% 7.1% 4.5% 2.5% 3.1% 2.8% EBITDA / Turnover 5.1% 5.3% 5.2% 5.1% 5.2% 5.2% EBIT / Turnover 2.9% 3.1% 3.0% 2.6% 3.0% 2.8% 2014 / Change in % 2014 / Change in mchf p. 30

31 Quarter over Quarter HY1 CHF million 5. Kuehne + Nagel Group A) Income Statement 2014 Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Q1 Q2 TOTAL Turnover 5,029 5,328 10,357 5,094 5,300 10,394 (1.3) +0.5 (0.4) (65) 28 (37) Customs duties and taxes (902) (955) (1,857) (912) (932) (1,844) +1.1 (2.5) (0.7) 10 (23) (13) Net Turnover 4,127 4,373 8,500 4,182 4,368 8,550 (1.3) +0.1 (0.6) (55) 5 (50) Net expenses for services from third parties (2,595) (2,798) (5,393) (2,645) (2,793) (5,438) +1.9 (0.2) (5) 45 Gross Profit 1,532 1,575 3,107 1,537 1,575 3,112 (0.3) - (0.2) (5) - (5) Opex (1,297) (1,323) (2,620) (1,318) (1,328) (2,646) EBITDA Depreciation and Amortisation (45) (46) (91) (50) (50) (100) EBIT Result from finance and associates EBT Income tax (42) (46) (88) (37) (45) (82) (13.5) (2.2) (7.3) (5) (1) (6) Earnings for the period Non-controlling interests (3) (1) (4) (2) (2) (4) (50.0) (1) 1 - Net Earnings B) KPI GP / Turnover 30.5% 29.6% 30.0% 30.2% 29.7% 29.9% EBITDA / Turnover 4.7% 4.7% 4.7% 4.3% 4.7% 4.5% EBIT / Turnover 3.8% 3.9% 3.8% 3.3% 3.7% 3.5% Earnings for the period/turnover 3.0% 3.1% 3.0% 2.6% 2.9% 2.8% 2014 / Change in % 2014 / Change in mchf p. 31

32 Contact Markus Blanka-Graff Andrea Kobi CFO Investor Relations Tel: +41 (0) Tel: +41 (0) 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. p. 32