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PANALPINA | BASEL | JUNE 07, 2019 COMPANY PRESENTATION
PANALPINA | BASEL | JUNE 07, 2019
COMPANYPRESENTATION
2COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina at a glance
500OFFICES
70COUNTRIES
+100COUNTRIES WITH
PARTNER COMPANIES
14,500FTEs
6,036MILLION CHF
NET FORWARDINGREVENUE
118.4MILLION CHF
EBIT
75.7MILLION CHF
PROFIT
1.48MILLION TEUs
OF OCEAN FREIGHT
1.04MILLION TONS
OF AIR FREIGHT
AIR FREIGHT
OCEAN FREIGHT
LOGISTICS AND MANUFACTURING
PROJECT SOLUTIONS
CoreActivities
Figures for 2018
3COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina’s vision, mission and values
VISIONWhat we want to be known for
Be the most customer focused global provider of freight forwarding and logistics solutions – a trusted, valued and respected partner
MISSIONWhat we will do to make our vision come true
Leverage our global presence and competence in Air and Ocean Freight by collaborating with our customers to unlock value in their supply chains and together build smart and efficient end-to-end logistics solutions
VALUESWhat drives our behavior to achieve the vision and mission
• PERFORMANCE
• INTEGRITY
• PROFESSIONALISM
4COMPANY PRESENTATION | JUNE 07, 2019 |
The Panalpina Spirit
At Panalpina, we’re changing the way the world moves by designing and refining global supply chains that are fit for the future.
For 120 years, we’ve helped businesses move in the best way possible. And as a result, we’ve broken new ground to find inventive ways to solve our customers’ challenges.
How? By embracing our entrepreneurial spirit.
Our 14,000 experts share a passion for shaping the future of logistics. We’re not weighed down by traditional assets, we embrace data and technology, so we can be agile and out-think our industry.
Together, with our vast global network and strategic partners, we create imaginative digital-first solutions to unlock value for our customers –wherever they are, whenever they need them.
Put simply, we combine smart people and smart technology to help the world move forward.
Panalpina, in motion.
5COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina’s strategic priorities
ORGANICGROWTH
INNOVATIONEXTERNALGROWTH
OPERATIONALIMPROVEMENT
OUR STRATEGY
ORGANIC GROWTHIncrease our business with existing customers, gain new customers, continue to balance our industry mix and expand our footprint in selected geographies
EXTERNAL GROWTHComplete bolt-on acquisitions in areas that would complement our current services, give us access to additional capabilities and competencies or that would accelerate growth in underdeveloped geographies or sectors
OPERATIONAL IMPROVEMENTContinuously improve our operations by further restructuring loss-making operations, centralizing and offshoring key processes, optimizing GP margin, maintaining strict cost control and optimizing the PanalpinaCharter Network
INNOVATIONExplore disruptive trends within the technology and supply chain industries, expand our service portfolio and foster strategic partnerships that will create new opportunities for Panalpina, its partners and its customers
6COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina’s core activities
AIR FREIGHT LOGISTICS AND MANUFACTURING
PROJECTSOLUTIONS
CORE COMPETENCIESAir and Ocean Freight forwarding are the foundations of our business to support the needs of all our customers
DIFFERENTIATORUnique industry offering of Logistics and Manufacturing Services
SPECIALTYExtensive expertise in project management and execution for all kinds of major moves
• Among global top 4
• Tailored service levels, from intermodal sea-air to temperature-controlled services, also available door-to-door
• Central procurement and strategic partnerships with leading airlines
• Charter Network
• 24/7 hub, charter and emergency services
• Among global top 4
• Central procurement and capacity management
• Strategic partnership with leading carriers
• NVOCC Pantainer Express Line
• Intermodal services
• 530+ LCL services
• Value-added warehousing• Final mile distribution• Road and rail services• Logistics Manufacturing
Services• Distributed manufacturing• Inventory management
services (including D2ID)• Installation services • E-commerce and OMS
solutions• 3D printing solutions• Repair and remanufacturing
• From permit loads to turnkey project logistics management
• Out-of-gauge, heavy-lift and breakbulk cargo
• Marine chartering• Transport engineering• Multimodal transports with hassle-
free carrier solution (PanprojectsCarrier)
• Project planning, consulting• Pre-qualified with Engineering,
Procurement and Construction (EPC) contractors
OCEAN FREIGHT
7COMPANY PRESENTATION | JUNE 07, 2019 |
Air Freight at a glance
24/7HUB, CHARTER AND
EMERGENCY SERVICES
53%OF NET FORWARDING
REVENUE IS GENERATED BY AIR FREIGHT
12GLOBAL STRATEGIC PARTNER AIRLINES
Top 4AIR FREIGHT FORWARDER
1,038,678 TONs
HealthcareGLOBAL INFRASTRUCTURE WITH ONLINE RISK
MANAGEMENT
Best data qualityWINNER OF CARGO iQ Q RALLY
Scheduled consolidationsNETWORK, CAPACITY AND SERVICES
Figures for 2018
8COMPANY PRESENTATION | JUNE 07, 2019 |
Ocean Freight at a glance
Top 4OCEAN FREIGHT
FORWARDER 1,484,114 TEUs
38%OF NET FORWARDING
REVENUEIS GENERATED BY OCEAN
FREIGHT
530+WEEKLY LCL
SERVICES
446MILLION CHF GROSS
PROFIT30% OF GROUP GROSS
PROFIT
LCL sailing scheduleUP-TO-DATE INFORMATION ON NEARLY 35,000 POINT-
TO-POINT CONNECTIONS FOR LCL SHIPMENTS
1NVOCC
PANTAINER EXPRESS LINE
ReeferTEMPERATURE CONTROL PRODUCT FOCUS ON
HEALTHCARE AND PERISHABLES
Supply chain solutionsTAILOR-MADE SOLUTION TO PROACTIVELY
MANAGE CUSTOMERS’ SUPPLY CHAINS
Figures for 2018
9COMPANY PRESENTATION | JUNE 07, 2019 |
Logistics and Manufacturing at a glance
4REGIONS OFFERING
LOGISTICS MANUFACTURING
SERVICES
60+SITES USING JDA
WAREHOUSE MANAGEMENT
SYSTEM
1,000+EMPLOYEES LEAN
CERTIFIED
270WAREHOUSE
FACILITIES WORLDWIDE
LogExINDUSTRY LEADING,
GLOBALLY DEPLOYED, CONTINUOUS IMPROVEMENT
Award-winningPANALPINA RESEARCH CENTRE AT CARDIFF UNIVERSITY (PARC)
LEADING RESEARCH INTO THE FUTURE OF GLOBAL SUPPLY CHAINS AND MANUFACTURING
E-commerce and OMSSCALABLE, FLEXIBLE, NEWEST SOLUTIONS
D2IDADVANCED FORECASTING AND
INVENTORY MANAGEMENT SERVICES
10COMPANY PRESENTATION | JUNE 07, 2019 |
Project Solutions at a glance
24/7GLOBAL COVERAGE
Specialized competence
CENTERS IN HOUSTON, ABERDEEN, ROTTERDAM, DUBAI, SINGAPORE
160+COUNTRIES OF OPERATION
DEVELOPING QHSE INDUSTRY BEST PRACTICES
60+YEARS OF TRACK
RECORD AS ENERGY AND LOGISTIC
SERVICES PROVIDER
Oil and gasSOLAR
WIND
Multi-modal solutionsPANPROJECTS CARRIER
Major MovesFROM PERMIT LOADS TO TURNKEY PROJECT
LOGISTICS MANAGEMENT
Marine CHARTERING
11COMPANY PRESENTATION | JUNE 07, 2019 |
AEROSPACE AUTOMOTIVE CHEMICALS CONSUMER AND RETAIL
ENERGY
GOVERNMENT, AID AND RELIEF
HEALTHCARE MANUFACTURING PERISHABLES HI-TECH
FASHION
TELECOM
Focus on customer needs
Industry-leading expertise and tailor-made, customer-specific solutions in:
12COMPANY PRESENTATION | JUNE 07, 2019 |
How Panalpina adds value
• Provide end-to-end transportation and logistics services to ensure goods arrive at the right time and at the right place
• Optimize supply chains for our customers to increase speed and efficiency, and reduce inventory and environmental impact
• Provide sophisticated supply chain analytics to enable continuous improvement
• Help our customers to respond quickly to market demand
• Enable a circular economy by managing return of goods, diagnostics and repairs
• Safeguard customer assets during transportation
• Ensure visibility of cargoes throughout their journey
13COMPANY PRESENTATION | JUNE 07, 2019 |
End-to-end solutions
SUPPLY CHAIN OPTIMIZATION ANDNETWORK OPTIMIZATION
• Strategic and tactical supply chain analysis
• Identification of improvement potentials and quick wins
• Cost savings, service and process improvements
LEAD LOGISTICS SOLUTIONS
• Holistic supply chain solution over all modes and supply chain partners
• Sourcing, transport management and freight audit services
• Business analytics and continuous improvement
FREIGHT AND ORDER MANAGEMENT SOLUTIONS
• Carrier/freight management
• Purchase order management
• Advanced origin logistics services
• Vendor management
• Buyer’s consolidation
LOGISTICSSOLUTIONS
• Logistics Manufacturing Services (LMS)
• Value-added logistics services
• Advanced forecasting and inventory planning solutions (D2ID)
14COMPANY PRESENTATION | JUNE 07, 2019 |
Launch of state-of-the-art customer portal
Customers will be able to manage their entire supply chain end-to-end with all partners in one digital place. They can request an instant quote, book and track their shipments in an intuitive, integrated and thus seamless flow. Self-service reporting will complement the user experience.
15COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina’s global network
Note: World map based on the official UN published maps
500OFFICES
70COUNTRIES
+100COUNTRIES WITH
PARTNER COMPANIES
14,500FTEs
16COMPANY PRESENTATION | JUNE 07, 2019 |
Group structure
AMERICAS
Argentina, Brazil, Canada, Chile,
Colombia, Costa Rica, Dominican
Republic, Ecuador, El Salvador,
Mexico, Panama, Peru, Uruguay,
USA, Venezuela
EUROPE
Austria, Belgium, Croatia, Czech
Republic, Denmark, Finland,
France, Germany, Hungary, Ireland,
Italy, Luxembourg, Netherlands,
Poland, Portugal, Romania,
Slovakia, Spain, Sweden,
Switzerland, United Kingdom
MIDDLE EAST,AFRICA AND CIS
Angola, Bahrain, Egypt, Gabon,
Iraq, Kazakhstan, Kenya, Kuwait,
Morocco, Qatar, Russia, Saudi
Arabia, South Africa, Turkey,
Ukraine, United Arab Emirates
ASIA PACIFIC
Australia, Cambodia, Greater
China, India, Indonesia, Japan,
Malaysia, Myanmar, New Zealand,
Philippines, Singapore, South
Korea, Taiwan, Thailand, Vietnam
17COMPANY PRESENTATION | JUNE 07, 2019 |
A brand with a rich history
The Panalpina logo shows a man navigating the globe through his own power. Although physically impossible, it symbolizes the idea that individual effort, together with the spirit of adventure and good fortune, can form the basis for success in a global company.
The logo is based on a 15th century ink drawing by the German master
Peter Vischer.
18COMPANY PRESENTATION | JUNE 07, 2019 |
Milestones in Panalpina’s history
Foundingof Hans im Obersteg(HIOC)
Acquisitionof Hans imObersteg& CIE
SSG renamedSchweizerischeReederei AG (SRAG)
1895
1919
1935
1938 2015
Founding of SchweizerSchleppschiffahrtsgenossenschaft(SSG)
Expansion of the global networkwith branches in North America, Latin America, Africa, Asiaand Australia1940 – 1950
Consolidation into AlpinaInternationale Transporte AG
RenamedPanalpina World Transport Ltd (PWTN)
Ernst GöhnerStiftungacquires40% of PWTN
Foundingof Air SeaBroker AG
Launch of Air Freight service Dixie Jet: beginning of Charter Network
Acquisitionof ChartAirEurope
IPO at SIX SwissExchange
Panalpinawithdraws fromNigeria
Acquisition in Norway (Grieg Logistics)
Two leased 747-8F in Panalpina liveryenter servicein Charter Network
1954
1960
1969
1973
1989
2012
2011
2007
2005
1996
1990 – 2000Network extension in Far East, Europe, Africa, Oceania and India
Acquisitions in Colombia (CargoMaster) and Ecuador (Laseair)
New offices in Myanmar, Morocco and Kenya
2016
New office in Cambodia
2017
Acquisitions in Kenya (Air Connection) and Denmark (Carelog)
Acquisitions in the Netherlands (Interfresh), Germany (parts of Cool Chain Group), and Belgium (Adelantex)
Acquisitions in Argentina (Newport Cargo) and South Africa (Skyservices)
2018
2019
Acquisitions in Kenya (Airflo) and Egypt (Afifi)
Panalpinaand DSVjoin forces
19COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina - Organization as of June 2019
PRESIDENT AND CHIEF EXECUTIVE OFFICERStefan Karlen
Executive Board (EB) + Executive Committee (ExCom)
REGIONAL CEO EUROPEChristian Wurst
REGIONAL CEO AMERICASFrank Hercksen
REGIONAL CEO ASIA PACIFICSven Raudszus
REGIONAL CEO MIDDLE EAST/AFRICA/CISRafic Mecattaf
CHIEFFINANCIAL OFFICERRobert Erni
CHIEFLEGAL OFFICERChristoph Hess
CHIEFHUMAN RESOURCES OFFICERKarsten Breum
CHIEFINFORMATION OFFICER Ralf Morawietz
CHIEFCOMMERCIAL OFFICERKarl Weyeneth
EXECUTIVE VP, AIR FREIGHTLucas Kuehner
EXECUTIVE VP, OCEAN FREIGHTPeder Winther
GLOBAL HEAD OF LOGISTICS AND MANUFACTURING Mike Wilson
GLOBAL HEAD OF PROJECT SOLUTIONSJesper Nielsen
HEAD OF CORPORATE AUDITMalte Schmidt
CORPORATE HEAD OF MARKETING AND COMMUNICATIONSEdna Ayme-Yahil
CORPORATE HEAD OF DIGITAL INNOVATIONLuca Graf
CORPORATE RISK, ETHICS AND COMPLIANCE OFFICEREmilio Rubio
BOARD OF DIRECTORS
20COMPANY PRESENTATION | JUNE 07, 2019 |
(% of total market in 2017)
Market share top 4
AIR FREIGHT
OCEANFREIGHT
Sources: Armstrong & Associates, Seabury, Transport Intelligence
4.2%PANALPINA 6.6%
KÜHNE + NAGEL
9.4% DHL
5.4% DB SCHENKER
1.0% PANALPINA 3.0%
KÜHNE + NAGEL
2.2%DHL
1.5% DB SCHENKER
21COMPANY PRESENTATION | JUNE 07, 2019 |
Net forwarding revenue (CHF 6,036 million) by region and product
Net forwarding revenue 2018
REGION
40%
Europe
30%
Asia Pacific
26%
Americas
4%
Middle East, Africa, CIS
9%
Logistics
38%
Ocean Freight
53%
Air Freight
PRODUCT
22COMPANY PRESENTATION | JUNE 07, 2019 |
In million CHF
Development of net forwarding revenue
6,707
5,855
5,1965,533
6,036
2014 2015 2016 2017 2018
23COMPANY PRESENTATION | JUNE 07, 2019 |
Gross profit (CHF 1,500 million) by region and product
Gross profit 2018
42%
Europe
24%
Asia Pacific
28%
Americas
6%
Middle East, Africa, CIS
23%
Logistics
30%
Ocean Freight
47%
Air Freight
REGION
PRODUCT
24COMPANY PRESENTATION | JUNE 07, 2019 |
In million CHF
Development of gross profit
1,586
1,4741,425 1,398
1,500
2014 2015 2016 2017 2018
25COMPANY PRESENTATION | JUNE 07, 2019 |
EBIT (CHF 118.4 million) by region and product
EBIT 2018
REGION
PRODUCT
14%
Europe
67%
Asia Pacific
19%
Americas
0%
Middle East, Africa, CIS
10%
Logistics
n/a*
Ocean Freight
91%
Air Freight* Ocean Freight reported an EBIT loss of CHF 1.2 million for 2018; shown percentage figures therefore add up to more than 100%
26COMPANY PRESENTATION | JUNE 07, 2019 |
In million CHF
Development of EBIT
117 117
110
103
118
2014 2015 2016 2017 2018
2016: Adjusted EBIT
27COMPANY PRESENTATION | JUNE 07, 2019 |
Development of transported volume
Air Freight (thousand tons) Ocean Freight (thousand TEUs)
858
836
921996
1'039
2014 2015 2016 2017 2018
1,607
1,5941,488
1,520
1,484
2014 2015 2016 2017 2018
28COMPANY PRESENTATION | JUNE 07, 2019 |
Global policy statement – Our commitment
• Management commitment starts with our QHSE policy and is the basis of our management system
• The management of Panalpina forges and enacts all the objectives of our integrated management system
• All necessary responsibilities, authorities and resources to implement, uphold and continuously improve the system are delegated to our fully trained QHSE responsible staff members
Quality, health, safety and environmental management
29COMPANY PRESENTATION | JUNE 07, 2019 |
Panalpina was the first in the industry to achieve global certification for
Quality, health, safety and environmental management
Customers are at the heartof Panalpina’s business
We are committedto minimize our environmental impact
Panalpina is devotedto the highest standards
HEALTHAND SAFETYOHSAS 18001
ENVIRONMENTALMANAGEMENTISO 14001
QUALITYMANAGEMENT
ISO 9001
IMS
30COMPANY PRESENTATION | JUNE 07, 2019 |
Committed to sustainable action internally
Reducing the environmental impact of Panalpina’s activities.Improvements from 2013 to 2018:
23% reduction in internal CO2emissions since 2013
59.724
46.045
0
10
20
30
40
50
60
70
1 2
Tons CO2
28%LESS WATER USED
38%LESS PAPER USED
Management (A-)HIGHEST SCORE LEVEL FROM THE CARBON DISCLOSURE
PROJECT (CDP) REPORTING
31COMPANY PRESENTATION | JUNE 07, 2019 |
Committed to sustainable action externally
Helping our customers and suppliers reduce their environmental impacts
ECO-TRANS-IT PLATFORMCustomers receive reports on greenhouse gas emissions associated with their shipments.
SCIENCE-BASED TARGETSPanalpina was the first logistics provider globally with officially approved science-based targets for the global reduction of GHG emissions.
SUPPLIER MANAGEMENTSuppliers are chosen based on their fuel efficiency and commitment to sustainable performance.
32COMPANY PRESENTATION | JUNE 07, 2019 |
Compliance - concept, process, controlling
Panalpina – striving to be the most compliant company in the industry• Code of Conduct• Compliance and ethics program
• Anti-corruption policies• Anti-bribery and facilitation payments• Gifts, hospitality and entertainment• Political contributions• Third-party onboarding• Third-party due diligence• Free competition• Trade regulations• “Whistleblowing” procedures• Training• Risk management
33COMPANY PRESENTATION | JUNE 07, 2019 |
Success factors for driving growth
1EXTENSIVE GLOBAL NETWORK
2IN-DEPTH KNOW-HOW IN KEY INDUSTRY VERTICALS
3QUALITY AND PROCUREMENT
4HIGHLY QUALIFIED AND COMMITTED WORKFORCE
5COMPLIANCE AND CORPORATE CULTURE
6PROCESS-OPTIMIZED INFORMATION TECHNOLOGY
* 2016: Adjusted EBIT
