Analyst conference Nine-months2023 results

Stefan Paul, CEO

Markus Blanka-Graff, CFO

Kuehne + Nagel International AG

October 25, 2023

Nine-months results

Solid performance in the third quarter 2023

Growth

Profit

Cash

▪ Net turnover of CHF 18.2 billion

▪ EBIT of CHF 1,581 million vs.

▪ Free Cash Flow of CHF 730 million

vs. CHF 30.6 billion in 2022

CHF 3,119 million in 2022 (-49%)

vs. CHF 2,629 million in 2022

(-41%)

(-72%)

▪ Earnings per share of CHF 9.86

▪ Gross Profit of CHF 6.7 billion

vs. CHF 18.37 per share in 2022

▪ Cash and cash equivalents of

vs. CHF 8.6 billion in 2022

(-46%)

CHF 1,963 million

(-22%)

  • Conversion Rate of 24% vs. 36% in 2022

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 2

Sea Logistics

Volume trend turned positive

TEU '000

GP/TEU in CHF

EBIT/TEU in CHF

▪ Continued long-term shift toward

higher-yielding volumes

▪ Intensified cost measures reduced

1,135

1,107 1,089

987

1,138

764

695 615 563

473

443

285

349

266

207

cost per TEU by 17% year-over-

year in Q3 2023

2014 - 2019 avg. GP/TEU: CHF 336

Q3

Q4

Q1

Q2

Q3

Q3

Q4

Q1

Q2

Q3

2022

2022

2023

2023

2023

2022

2022

2023

2023

2023

2014 - 2019 avg. EBIT/TEU: CHF 102

Q3

Q4

Q1

Q2

Q3

2022

2022

2023

2023

2023

▪ Signs of recovery in volumes on

Transpac and South American

trades

In CHF million

Q3 2023

Q3 2022

Variance

YTD 2023

YTD 2022

Variance

Gross profit

538

867

(38%)

1,847

2,809

(34%)

EBIT

236

503

(53%)

875

1,711

(49%)

Conversion rate

44%

58%

47%

61%

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 3

Air Logistics

Stable unit EBIT due to cost management focus

Tons '000

GP/100 kg in CHF

EBIT/100 kg in CHF

  • Accelerated cost reduction offsets gross profit decline

543

545

475

482

493

130

120

118

103 93

2014 - 2019 avg. GP/100 kg: CHF 73

83

59

48

32 29

28

▪ Cost per 100kg down by 23% year-

over-year in Q3 2023

▪ Absolute volume slightly higher;

year-on-year decline in line with

Q3

Q4

Q1

2022

2022

2023

Q2 2023

Q3 2023

20

Q3 2022

2014 - 2019 avg. EBIT/100 kg: CHF 21

10

Q4

Q1

Q2

Q3

Q3

Q4

Q1

Q2

Q3

2022

2023

2023

2023

2022

2022

2023

2023

2023

market

▪ Signs of recovery in European

export trades

In CHF million

Gross profit

EBIT

Conversion rate

Q3 2023

Q3 2022

Variance

YTD 2023

YTD 2022

Variance

411

707

(42%)

1,348

2,320

(42%)

136

323

(58%)

429

1,149

(63%)

33%

46%

32%

50%

▪ Acquisition of Morgan Cargo

expected to close in Q4 2023

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 4

Road Logistics

Headwinds in key markets during Q3 2023

In CHF million

Q3 2023

Q3 2022

Variance

YTD 2023

YTD 2022

Variance

Net turnover

834

983

(15%)

2,707

3,016

(10%)

Gross profit

303

326

(7%)

987

1,010

(2%)

EBIT

26

40

(35%)

119

120

(1%)

Conversion rate

9%

12%

12%

12%

  • Gross profit increased 2% year- over-year, excluding currency effects, in the first nine months 2023
  • Network underutilisation in Q3 2023
  • Conversion rate in 2023 maintained near record high level

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 5

Contract Logistics

Strong performance with record-high EBIT

In CHF million

Q3 2023

Q3 2022

Variance

YTD 2023

YTD 2022

Variance

Net turnover

1,147

1,226

(6%)

3,620

3,631

-

Gross profit

827

812

2%

2,546

2,471

3%

EBIT

48

58

(17%)

158

*

139

14%

Conversion rate

6%

7%

6%

6%

* Includes CHF 9 million one-off profit from sale of real estate (Q1:23)

  • Market share expansion in pharma and e-commerce
  • Gross profit growth of 3% YTD 2023, or 8% excluding currency effects
  • Conversion Rate maintained at 6%

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 6

Roadmap 2026

Update Q3 2023

▪ Expanded Healthcare offering

Grew global HealthChain network of GxP compliant facilities with new openings in Paris and

Chicago, and launched Healthcare LCL to improve carbon footprint and efficiency

▪ Accelerated cloud transformation program

Cloud transformation program in full motion with leading cloud service provider, modernising IT, building new global data platform, and scaling AI capabilities

  • Commenced delivery for Saudi Arabia's NEOM wind farm contract
    Safely transported the first wind turbines of the 1.4 million freight ton project from the Oxagon port to the construction site
  • Launched Road Logistics book & claim solution for HVO
    New offer for customers purchasing hydrotreated vegetable oil (HVO) to reduce transport emissions, solution for battery electric vehicles to follow.

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 7

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 8

Financial KPIs

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 9

Income Statement

Quarter over quarter comparison

2022

2022

2022

2022

2023

2023

2023

2023

Variance

YTD Variance in %

CHF million

Q1

Q2

Q3

YTD

Q1

Q2

Q3

YTD

2023/2022

Q1

Q2

Q3

2023/2022

Growth

Acquisition/

Forex

1

disposal

Net turnover

10,158

10,473

9,972

30,603

6,748

5,973

5,438

18,159

(12,444)

(3,410)

(4,500)

(4,534)

(40.7%)

(37.4%)

(0.2%)

(3.1%)

Gross profit

2,942

2,956

2,712

8,610

2,394

2,255

2,079

6,728

(1,882)

(548)

(701)

(633)

(21.9%)

(17.8%)

(0.3%)

(3.8%)

Gross profit margin

29.0%

28.2%

27.2%

28.1%

35.5%

37.8%

38.2%

37.1%

EBITDA

1,306

1,274

1,109

3,689

803

715

640

2,158

(1,531)

(503)

(559)

(469)

(41.5%)

(39.0%)

0.4%

(2.9%)

EBITDA margin

12.9%

12.2%

11.1%

12.1%

11.9%

12.0%

11.8%

11.9%

EBIT

1,120

1,075

924

3,119

612

523

446

1,581

(1,538)

(508)

(552)

(478)

(49.3%)

(47.5%)

0.8%

(2.6%)

Conversion rate

38.1%

36.4%

34.1%

36.2%

25.6%

23.2%

21.5%

23.5%

EBT

1,128

1,086

937

3,151

628

549

455

1,632

(1,519)

(500)

(537)

(482)

(48.2%)

(46.3%)

0.8%

(2.7%)

Earnings

832

796

688

2,316

462

398

321

1,181

(1,135)

(370)

(398)

(367)

(49.0%)

(47.2%)

0.8%

(2.6%)

Non-controlling interests

(49)

(42)

(34)

(125)

(6)

2

(6)

(10)

115

43

44

28

Net earnings

783

754

654

2,191

456

400

315

1,171

(1,020)

(327)

(354)

(339)

(46.6%)

(44.8%)

0.9%

(2.7%)

1

Foreign currency translation impact

  • Significant translation impact due to decline of EUR (3.2%) and USD (4.5%) vs. CHF
  • Cost control yields first results

Analyst conference nine-months 2023 results | © Kuehne+Nagel Group | 10

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Kuehne + Nagel International AG published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 04:50:38 UTC.