Download pdf - Kuehne + Nagel Investor Day - kn-portal.com · Kuehne + Nagel Investor Day 27/4/07 p. 3 1. Business Description Key facts Inbound-, In-House, Distribution, Reverse and Lead Logistics

Kuehne + Nagel Investor DayApril 27, 2007Dirk Reich Executive Vice President, Contract LogisticsKuehne + Nagel International AG

p. 227/4/07Kuehne + Nagel Investor Day

Overview

1. Business Description

2. Market & Competition

3. Strategic Goals

4. Global Network Expansion

5. Product Innovation

6. IT Standardisation

7. Process Standardisation

8. Focussed on Asset-Light Model

9. Focussed on Growth

10. Executive Summary


1. Business DescriptionKey facts

Inbound-, In-House, Distribution, Reverse and Lead Logistics Solutions based on:

• 6 million sqm logistics space• 400 logistics locations (~30 % shared, ~70 % dedicated)• 55 countries• 25,000 employees


16

19

123

6

8

15

GermanyUKFranceBeneluxSouth EuropeEastern EuropeNordicOther

45% Americas

39% Europe

6% Asia-Pacific (excluding Japan)Source: ING estimates

Con

tract

Log

istic

s M

arke

t

• Potential Contract Logistics market 2006: 800 bn €• Outsourced Contract Logistics market 2006: 180 bn €• Growth rate (2007 – 2010): 7 - 8% p.a.

• Potential Contract Logistics market 2006: 800 bn €• Outsourced Contract Logistics market 2006: 180 bn €• Growth rate (2007 – 2010): 7 - 8% p.a.

81

Kuehne+

NagelTop 10

70

1811

10% Japan

180 bn €

2.1. Outcourced Contract Logistics Market Size (€ bn)

Kuehne +Nagel #3

Kuehne +Nagel #3

Kuehne +Nagel #3

Euro billion


2.2. Competitor AnalysisGlobalisation has just started

Market share 2006 Countries

28

55

16

30

14

18

7

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

DH

L

Cev

aLo

gist

ics

Kueh

ne +

Nag

el

Win

cant

on

Sche

nker

UP

S S

CS

Ryd

er

Fieg

e

Agilit

y

TDG

0

10

20

30

40

50

60

Market share Countries

61

Source: Company reports and Kuehne + Nagel estimates


3. Contract Logistics Strategic Goals

Integrate and expand the Global Network

Become the most innovative companyProduct Innovation

Consistentglobal

operations“Best in class”

Informationdriven

supply-chainmanagement

“Best in class”

Industry specialisation &

systematic global cross-

selling

To be recognisedby our customers “as an

extension of their business”

5.5. 4.4. 3.3.

2.2.

1.1.

Clearly focused

on growth!


India, China and Russia have the highest priority

1. Asia-Pacific

2. Eastern Europe

3. South America

4. Global Network Expansion


5. Innovation

Best InnovatorAward

Best InnovatorAward

AirbusAirbus

Kuehne + Nagel’s culture drives innovation of products, processes and organisation

Examples:


6. IT Standardisation

The competitive advantage of Kuehne + Nagel

• Visibility“KN LOGIN”

• Warehouse Management System/Transport Management System“CIEL”

>100 countriesAll business units

>100 countriesAll business units

• 40 countries• 400 customers• 100 sites• 3 releases p.a.• Regional data centres/

back-up

• 40 countries• 400 customers• 100 sites• 3 releases p.a.• Regional data centres/

back-up


7. Consistent Global Operations

Focus on cost control and quality

• Standard global calculation tool ( )

• Standard global operations guidelines ( )

• Standard quality KPIs ( )

• Standard customer transition and implementation process ( )

• Standard financial KPIs ( )

• Development of standard “KN Production System”

• Development of consistent global training program


8. Focussed on Asset-Light Model

• 75 % of Contract Logistics business is dedicated with back-to-back rental and leasing contracts

• The Capital Employed of 542 million CHF can be further optimised

• Selected real estate investments in logistics sites in new markets (India, South America, Eastern Europe) are a competitive advantage


AutomotiveAutomotive

9.1. TOP 15 Contract Logistics Customers

TOP 15 customers represent 40 % of turnover!

Fast MovingConsumer Goods

Fast MovingConsumer Goods

High TechHigh Tech RetailRetail

AviationAviation

http://www.orange.ch/home

http://www.karcher.com/de/index.shtml


9.2. Growth Through Systematic Cross-Regional Selling

55555

66666

77

88

910

1112

20

0 5 10 15 20 25

Procter & GambleHenkel

Thomson Ind.Samsung

BoschCarrefour

Egate MatrixPhilip Morris

IVECOAgrati

DuPontUnilever

Black & DeckerPhilips

Hewlett-PackardSiemens/Osram

LexmarkFlextronics

Nortel

Key Focus

Key Focus: Systematic cross-regional selling

# countries

Increase number of countries with contract logistics activities

55


9.4. Organic Growth Double The Market

0

500

1'000

1'500

2'000

2'500

3'000

3'500

4'000

4'500

1-12/2004 1-12/2005 1-12/2006 1-3/2006 1-3/2007

Ext. turnovermillion CHF

1‘170 1‘332

3‘916

ACR

+14 %+14 %

+ >15 %+ >15 %

+ 20 %+ 20 %

9091‘090


9.5. The Advantages of “The Integrated Model”

• Customers prefer providers with global scale and wide, integrated capabilities high growth for Kuehne + Nagel

• Scale leads to lower indirect costs for all business units cost control

• The integrated model leads to longer contract periods / relationships lead to more value for customer and Kuehne + Nagel

The integrated business model is key to success


10. Executive Summary

• Innovation

• Growth

• Profitability / Margin

Get prepared to reach TOP 2 position

Integrate and expand the Global Network

Become the most innovative companyProduct Innovation

Consistentglobal

operations“Best in class”

Informationdriven

supply-chainmanagement

“Best in class”

Industry speciali-sation &

systematic global cross-

selling

To be recognisedby our customers “as an

Extension of their business”

Outperform the market in terms of: