Increased Capability to offer Integrated Logistics Services

Transcription

1 ACR Integration

2 Increased Capability to offer Integrated Services 4.7% Ranking of contract logistics providers 2.5% 1.1% 1.0% 0.7% 0.7% 0.6% 0.6% 0.6% 0.4% 0.4% Exel/DPWN TNT Kuehne + Nagel pro-forma Wincanton Fiege ACR Schenker Ryder UPS Kuehne + Nagel Salvesen Chr. - Mid-term target of CHF3bn revenues in contract logistics achieved - Combined entity becomes a TOP 3 player in contract logistics and one of the leading providers of integrated logistics services globally Kuehne + Nagel Investors Day /04/07 p. 2

3 Coverage of all Major European Markets ACR Country Staff UK & Ireland France Benelux Italy 670 Other Significant presence of ACR Significant presence of Kuehne + Nagel ( ) - ACR has a strong presence in the UK, France, Italy and the Benelux countries - No significant overlap with Kuehne + Nagel s operations in Europe - Combined group has a strong presence in all major European contract logistics markets Kuehne + Nagel Investors Day /04/07 p. 3

4 Concept on ACR Integration Integration of this complementary acquisition covering in 11 countries with app staff based on one company per country concept with one management structure One brand name A dedicated migration team, as part of Corporate Finance, was created for the legal / tax / finance integration Upon completion ( ) the final management structure per country was agreed, communicated and put in place By the end of Q the back office incl. standardising of finance application finalized Kuehne + Nagel Investors Day /04/07 p. 4

5 Overview United Kingdom Kuehne + Nagel announced intention to acquire ACR on 17 October 2005 Kuehne + Nagel has existing leading position in Sea & Air in UK Top 10 player in Rail & Road Almost no presence in ACR was top 5 player in UK Limited activities in Rail & Road No presence in Sea & Air Kuehne + Nagel Investors Day /04/07 p. 5

6 Integration timeline Kuehne + Nagel completed acquisition January 2006 Internal and external communication commenced New management structure implemented on 1 March 2006 (2 months) ACR renamed Kuehne + Nagel Ltd. on 1 March 2006 Business field integration completed by 31 March 2006 (3 months) Back office integration finalised before year end 2006 Legal entities merged effective 1 January 2007 Kuehne + Nagel Investors Day /04/07 p. 6

7 UK Situation 2005 Managing Director Airfreight Seafreight Rail & Road Sales Finance Human Resources IT Business Fields Functional Units Managing Director Sales Finance Human Resources IT Business Fields Functional Units Kuehne + Nagel Investors Day /04/07 p. 7

8 UK Situation 2006 Managing Director Managing Rail & Director Airfreight Seafreight Sales Finance Road Human Resources IT Sales Business Fields Functional Units Kuehne + Nagel Investors Day /04/07 p. 8

9 Managing Director Rail & Airfreight Seafreight Sales Finance Road Human Resources IT Business Fields Functional Units Global Kuehne + Nagel management structure implemented Kuehne + Nagel Investors Day /04/07 p. 9

10 Terms & Conditions Basic principles Harmonisation of all Terms & Conditions Value of compensation packages remain unchanged Equal benefit structure across combined company Top down implementation Central procurement Harmonisation to be cost neutral Kuehne + Nagel Investors Day /04/07 p. 10

11 Harmonisation of Terms & Conditions Harmonisation project commenced 1 March 2006 Management contracts changed to global Kuehne + Nagel standards as of 1 July 2006 All other employee agreements changed as of 1 January 2007 Discontinued benefits exchanged for new benefits or higher salary New additional benefits available against salary sacrifice Pension plans and insurance consolidated Joint payroll and HR system One Company - One Concept Kuehne + Nagel Investors Day /04/07 p. 11

12 Kuehne + Nagel UK & Ireland Expanded New Network 88 locations 650,000 sqm 9400 staff Kuehne + Nagel ACR KN Drinks Kuehne + Nagel Investors Day /04/07 p. 12

13 Post Integration Review Integration of ACR UK completed ahead of schedule Stable management platform Gained No. 3 position in UK contract logistics market 140 million of new contract logistics business secured Sea & Air continued to grow at twice the market rate Already one third of the combined top 25 customers are engaging with Kuehne + Nagel across business units Kuehne + Nagel Investors Day /04/07 p. 13