Kuehne + Nagel Investor Day. April 27, 2007 Dirk Reich Executive Vice President, Contract Logistics Kuehne + Nagel International AG

Transcription

1 April 27, 2007 Dirk Reich Executive Vice President, Contract Logistics Kuehne + Nagel International AG

2 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 p. 2

3 1. Business Description Key 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 p. 3

4 2.1. Outcourced Contract Logistics Market Size ( bn) 180 bn Potential Contract Logistics market 2006: 800 bn Outsourced Contract Logistics market 2006: 180 bn Growth rate ( ): 7-8% p.a. Contract Logistics Market 81 Kuehne + Nagel Top % Americas 39% Europe Kuehne + Nagel #3 1 Euro 19 billion Kuehne + Nagel #3 Kuehne + Nagel #3 16 Germany UK France Benelux South Europe Eastern Europe Nordic Other 18 10% Japan Source: ING estimates 11 6% Asia-Pacific (excluding Japan) p. 4

5 2.2. Competitor Analysis Globalisation has just started Market share % 61 Countries % % % 3.0% % % % DHL Ceva Logistics Kuehne + Nagel Source: Company reports and Kuehne + Nagel estimates Wincanton Schenker Market share UPS SCS Countries Ryder Fiege Agility TDG 0 p. 5

6 3. Contract Logistics Strategic Goals To be recognised by our customers as an extension of their business Industry specialisation & systematic global crossselling Consistent global operations Best in class Information driven supply-chain management Best in class Clearly focused on growth! Become the most innovative company Product Innovation Integrate and expand the Global Network p. 6

7 4. Global Network Expansion 2. Eastern Europe 1. Asia-Pacific 3. South America India, China and Russia have the highest priority p. 7

8 5. Innovation Kuehne + Nagel s culture drives innovation of products, processes and organisation Examples: Airbus Airbus Best Best Innovator Innovator Award Award p. 8

9 6. IT Standardisation Visibility KN LOGIN >100 >100 countries All All business units units Warehouse Management System/ Transport Management System CIEL countries customers sites sites 3 releases p.a. p.a. Regional data data centres/ back-up The competitive advantage of Kuehne + Nagel p. 9

10 7. Consistent Global Operations 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 Focus on cost control and quality p. 10

11 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 p. 11

12 9.1. TOP 15 Contract Logistics Customers Automotive Automotive Aviation Aviation Fast Fast Moving Moving Consumer Consumer Goods Goods High High Tech Tech Retail Retail TOP 15 customers represent 40 % of turnover! p. 12

13 9.2. Growth Through Systematic Cross-Regional Selling Nortel Flextronics Lexmark Siemens/Osram Hewlett-Packard Philips Black & Decker Unilever DuPont Agrati IVECO Philip Morris Egate Matrix Carrefour Bosch Samsung Thomson Ind. Henkel Procter & Gamble Key Focus Increase number of countries with contract logistics activities # countries 55 Key Focus: Systematic cross-regional selling p. 13

14 9.4. Organic Growth Double The Market Ext. turnover million CHF 4'500 4' '500 3'000 2'500 + >15 % ACR 2'000 1'500 1' % % / / / / /2007 p. 14

15 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 p. 15

16 10. Executive Summary Outperform the market in terms of: Innovation To be recognised by our customers as an Extension of their business Growth Profitability / Margin Industry specialisation & systematic global crossselling Consistent global operations Best in class Information driven supply-chain management Best in class Become the most innovative company Product Innovation Integrate and expand the Global Network Get prepared to reach TOP 2 position p. 16