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Kuehne + Nagel International AG
39. Congress der Controller
Gerard van Kesteren, CFO
Munich, 20. May 2014
Agenda
What about Gerard van Kesteren
What about Kuehne + Nagel
The Function of the CFO in a Stagnating Market
CFO Position within Kuehne + Nagel
Slide 2Controller Congress, 20.05.14 / GvK
Organisational Set-up Finance Function
17 years with Sara Lee
25 years with Kuehne + Nagel
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Gerard van Kesteren
CFO
01.04.2014:
CHF 124.50
01.01.2000:
CHF 12.39
What about Gerard van KesterenPersonal
Slide 3Controller Congress, 20.05.14 / GvK
Agenda
Slide 4Controller Congress, 20.05.14 / GvK
What about Gerard van Kesteren
What about Kuehne + Nagel
The Function of the CFO in a Stagnating Market
CFO Position within Kuehne + Nagel
Organisational Set-up Finance Function
1’000 locations in more than 100 countries
Ownership of the global network
Non-asset based
Over 70’000 employees
Controller Congress, 20.05.14 / GvK
What about Kuehne + NagelGlobal logistics network
Slide 5
Human Resources –
attractive remuneration programme / Share Matching program
Information Technology –
standardised IT systems / resulting in business intelligence
Finance –
globally standardised system
Ownership of the Global Network / 1‘000 locations
Seafreight
No. 1Contract Logistics
No. 2Airfreight
No. 2Road & Rail Logistics
No. 5
Controller Congress, 20.05.14 / GvK
What about Kuehne + NagelSuccess factors for a leading global position
Slide 6
Controller Congress, 20.05.14 / GvK
historical
estimated
Service Portfolio
Glo
bal
Sco
pe
low
ave
rag
eh
igh
12
34
56
78
9
narrow medium wide
1 2 3 4 5 6 7 8 9
?
?
Kuehne + Nagel
and its most
important
competitors
count on
global, integrated
Logistics services.
What about Kuehne + NagelSector positioning
Slide 7
Controller Congress, 20.05.14 / GvK
What about Kuehne + Nagel Competitive environment
Slide 8
1 2 3 4 5
Seafreight
Airfreight
Road & Rail DSV KN
Contract Logistics
Business Units Leaders
DSV
DSV
DB
SchenkerDHL
DHL KN CEVA
KN DHLDB
SchenkerPanalpina
DHL KNDB
SchenkerPanalpina
What about Kuehne + Nagel Competitive environment 2013 – Volumes
Slide 9Controller Congress, 20.05.14 / GvK
Company Seafreight Airfreight
Variance
in %
Variance
in %
Market + 2 to 3% 0%
Kuehne + Nagel 3.0% 3.8%
DHL (1.2%) (4.8%)
Panalpina 7.7% 3.0%
DSV 6.4% 0.1%
Expeditors 5.8% 3.4%
p. 10
Q1 Results 2014 – Kuehne + Nagel Group
Above market growth in all business units
Stable Gross Profit by 0.3% (excl. Forex + 2.8%)
Increased EBIT by 12.4% (excl. Forex + 17.1%)
Working Capital Intensity 4.1%
Effective tax rate sustainable at 21 - 22%
Highlights Q1 2014
3951
4182 4127
3000
3500
4000
4500
03/2012 03/2013 03/2014
CH
F m
illio
n
Net Turnover
15021537 1532
1000
1100
1200
1300
1400
1500
1600
1700
03/2012 03/2013 03/2014
CH
F m
illio
n
Gross Profit
* Excl. EU Antitrust fine of CHF 65 million in 2012
165* 169
190
100
110
120
130
140
150
160
170
180
190
200
03/2012 03/2013 03/2014
CH
F m
illio
n
EBIT
Controller Congress, 20.05.14 / GvK
p. 11
Overview Q1 Results 2014 – Consolidated Income Statement
2014/2013 Growth Forex
Net Turnover 4,127 4,182 (55) (1.3%) 3.3% (4.6%)
Gross Profit 1,532 1,537 (5) (0.3%) 2.8% (3.1%)
Gross Profit margin 37.1% 36.8%
EBITDA 235 219 16 7.3% 11.4% (4.1%)
EBITDA margin 5.7% 5.2%
EBIT 190 169 21 12.4% 17.1% (4.7%)
EBIT margin 4.6% 4.0%
EBT 192 171 21 12.3% 17.0% (4.7%)
EBT margin 4.7% 4.1%
Earnings for the period 150 134 16 11.9% 16.4% (4.5%)
2014Variance in %Variance
2014/20132013CHF million
Material negative foreign currency impact
Increased Working Capital Intensity
Volume growth in line with our outlook
EBIT improved by + 12.4% (+ 17.1% excl. forex)
Controller Congress, 20.05.14 / GvK
p. 12
Financial Review – Balance Sheet
CHF million31 March
2014
31 December
2013CHF million
31 March
2014
31 December
2013
Assets Liabilities and equity
Total equity 2,657 2,558
Non-current assets 2,126 2,133 Non-current liabilities 591 563
Trade payables 1,271 1,362
Trade receivables 2,526 2,426 Accrued trade expenses / deferred income 939 936
Cash and cash equivalents 1,258 1,255 Bank and other interest-bearing liabiliites 41 21
Others 612 560 Others 1,023 934
Current assets 4,396 4,241 Current liabilities 3,274 3,253
Total assets 6,522 6,374 Total liabilities and equity 6,522 6,374
Controller Congress, 20.05.14 / GvK
p. 13
Financial Review – Working Capital
CHF million March 2014 Dec 2013 March 2013Better/(Worse)
Mar 14 vs. Mar 13
Trade receivables & Work in progress 2,879 2,806 2,870 (9)
Trade payables & Accrued trade expenses (2,061) (2,148) (2,108) (47)
Net Working Capital 818 658 762 (56)
KPI's:
Working Capital Intensity 4.1% 3.1% 3.7% (0.4%)
DSO 46.7 43.2 46.1 (0.6)
DPO 53.4 52.6 53.5 (0.1)
∆ 6.7 9.4 7.4 (0.7)
Controller Congress, 20.05.14 / GvK
Agenda
Slide 14Controller Congress, 20.05.14 / GvK
What about Gerard van Kesteren
What about Kuehne + Nagel
The Function of the CFO in a Stagnating Market
CFO Position within Kuehne + Nagel
Organisational Set-up Finance Function
Controller Congress, 20.05.14 / GvK
The Function of the CFO in a Stagnating Market
Slide 15
Will the world economic growth return to pre-2009
level?
Will the globalisation continue?
Will the current CFO be the future CEO?
Controller Congress, 20.05.14 / GvK
Agenda
Slide 16
What about Gerard van Kesteren
What about Kuehne + Nagel
The Function of the CFO in a Stagnating Market
CFO Position within Kuehne + Nagel
Organisational Set-up Finance Function
I. Growth II. Stagnation III. Recession
Direct Manpower
Administration
IT
Sales
Capex
M&A
Controller Congress, 20.05.14 / GvK
CFO position within Kuehne + Nagel How to manage business in a volatile environment
Slide 17
Controller Congress, 20.05.14 / GvK
CFO position within Kuehne + Nagel Impact 10% volume reduction K+N
Slide 18
Turnover 20'929 (2'093) 18'836
Gross profit 6'257 (626) 5'631
Manpower (3'735) - (3'735)
Other expenses (1'560) - (1'560)
EBITDA 962 (626) 336
EBITA 819 (626) 193
EBIT 761 (626) 135
PAT 607 (488) 119
2013
10%
volume
reduction
"left"CHF million
Controller Congress, 20.05.14 / GvK
Agenda
Slide 19
What about Gerard van Kesteren
What about Kuehne + Nagel
The Function of the CFO in a Stagnating Market
CFO Position within Kuehne + Nagel
Organisational Set-up Finance Function
Detailed Budget (time horizon 15 months!)
cancelled
Rolling Forecast concept introduced based on 3
quarterly cycle and full year estimate
Quarterly review calls with Regional Management
Financial function clear Nr. 2
Controller Congress, 20.05.14 / GvK
Organisational Set-up Finance FunctionChanges implemented
Slide 20
Chief Financial Officer
Corp. TaxCorp. Purchasing Corp. ControllerFin. Application
SAP
Reg.
CFO
WEU
Reg.
CFO
EEU
Reg.
CFO
MEA
Reg.
CFO
SCA
Reg.
CFO
NAM
Reg.
CFO
NAP
Reg.
CFO
Organisational Set-up Finance FunctionCorporate finance
Controller Congress, 20.05.14 / GvK Slide 21
Corp. Accounting
Chief Future Officer
Chief Focus Officer
Chief Financial Officer
Controller Congress, 20.05.14 / GvK
CFO ?
Organisational Set-up Finance FunctionRole of the CFO
Chief Financial No !
Slide 22
Controller Congress, 20.05.14 / GvK
Organisational Set-up Finance Function
Slide 23
Work hard
Have a strategy
Ruthless execution
Have a bit of luck
Have fun
Contact
Gerard van Kesteren Markus Blanka-Graff Andrea Kobi
CFO Director Corporate Finance + Investor Relations Investor Relations
gerard.vankesteren@kuehne-nagel.com markus.blanka@kuehne-nagel.com andrea.kobi@kuehne-nagel.com
Tel: +41 (0)44 7869 564 Tel: +41 (0)44 7869 644 Tel: +41 (0)44 7869 561
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 + NagelInternational 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 andassumptions. 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 economicconditions, 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. Theinformation in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material informationconcerning the Kuehne + Nagel Group. None of Kuehne + Nagel International AG or their respective affiliates shall have any liability whatsoever forany 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 notbeen, and will not be registered under the United States Securities Act of 1933, as amended. Kuehne + Nagel International AG securities may not beoffered or sold to anyone in the United States absent such registration, except pursuant to an appropriate exemption from registration. There will beno public offering of Kuehne + Nagel International AG securities in the United States.