Thiel Logistik AG Investor Meetings Frankfurt August 31, 2007

Transcription

1 Thiel Logistik AG Investor Meetings Frankfurt August 31, 2007

2 Agenda Market and Business Profile New Management Structure Financial Review and Outlook Half-Year Results

3 Company Profile Business: Founded: As an external partner, Thiel Logistik AG, develops holistic logistics and service solutions for trade and industry. Its business segments are Solutions (customer-orientated contract logistics solutions), Air & Ocean (global air and ocean freight forwarding activities) and Road & Rail (land and special transportation activities in Central, Western and Eastern Europe) in Luxembourg Revenue: 1,891.4 mn. in 2006 (+2.8% vs. 2005) Employees: Listing: 8,500 worldwide at more than 350 sites in 43 countries Frankfurt Stock Exchange (ISIN: LU , German SIN: , TGH) Major Shareholder: DELTON AG, Bad Homburg (50.26%) MarketCap: Approx. 300 mn. Key Developments 2007 Increase of net sales in all three business segments Further improvement in operating earnings With the start of the new management structure on July 1, Thiel Logistik has become an integrated logistics group Targets for management teams: to enlarge strengths, resolve weaknesses, improve efficiency 2

4 Key Growth Drivers in Logistics World Merchandise Trade Market trends Globalization of sourcing, production and distribution Supply-Chain Management 636bn US$ 721bn US$ Increase of multi-level subcontractors cascades 126bn US$ in billion US$ bn US$ German World Trade vs GDP Growth 8,0% 5,3% Acceleration of economic activity in the on-demand world Deregulation of public transport services Asia s trade development prominently shaped by China German world trade outperforms GDP growth ,7% German World Trade GDP 0,0% Sources: World Trade Organisation, Statistisches Bundesamt 3

5 Focus on Air & Ocean Expansion of Network and Growth Key Trends Globalization of sourcing activities continues and will increasingly be supplemented by increasing demand from emerging markets Importance of and demand for intercontinental management of supply chains will increase and generate significant efficiency gains High importance of container shipping for international cargo and increasing importance of air-freight market due to specific performance characteristics (e.g. short lead-times) Thiel Market Position Organization of inter-continental air and ocean transports combined with valueadded services and freight management solutions generates operating margins above 3 percent Global network with 88 offices plus partnerships Member of purchasing alliances to bundle purchasing power (FUTURE, Group 99) Thiel Strengths Highly advanced IT solutions allow integrated handling of processes Long-standing presence in East Asia has been developed in a lasting competitive advantage Focus on medium-sized business customers mirrors own strong corporate culture with high degree of loyalty 4

6 Focus on Solutions Extension and Growth Key Trends Specialized demand for logistics services resulting from individualization of customer needs Complex solutions require high degree of reliability, reactivity and also cost efficiency Co-ordination activities across the supply chains of market participants will generate significant benefits Thiel Market Position Strong market positions and expertise in selected industries based on special networks (Media, Fashion, Steel, Food) Range of customer-specific solutions with highly innovative solutions (Red Bull, Subway, ZF etc.) High share of asset-light business models with high level of integration into customer processes and conceptual logic Seed Raw material Broker of Supply Chain Quality control, compliance, fashion logistics Inventory control system, POTrack, SC simulation Processed materials Transport optimization to manufacturer Manufacturer/ Producer Quality control Transport optimization Combination of components Delivery to POS Disposal Thiel Strengths Long-standing customer relations, partially resulting from successful spin-offs High level of industry-specific knowledge and tools which allow back-/forwardintegration in supply chains of customers Special equipment and infrastructure creating additional barriers of entry (e.g. garment on hanger transportation) Global link via Air & Ocean network 5

7 Focus on Road & Rail Integration of Network based on strength in Eastern Europe Key Trends Shift of production towards Eastern Europe will continue Economic growth in emerging markets will outpace Western European growth rates Demand for sophisticated logistics services and transport connection will rise significantly Thiel Market Position Thiel general network activities in Eastern Europe with unique standards and wide coverage (Top 3) Long-standing Eastern European expertise with 57 sites in 14 countries Establishment of an Intra-Eastern Europe network Thiel Home regions Sales Orientation Thiel Strengths Network activities serve as platform for solutions currently performed in Western Europe mainly Entering new markets in former GUS Cost leadership by standardization Activities provide strong link in East- West traffic (road and inter-modal) 6

8 Agenda Market and Business Profile New Management Structure Financial Review and Outlook Half-Year Results

9 Evolution of Management and Organizational Structure Numerous Formation of Addition of Re-Organization of acquisitions in segments based Centers of segments based on contract logistics on legal entities Competence and business and freight shared services processes forwarding until starting July

10 Strategic Orientation of Business Segments 3 business segments 12 business units Net sales approx. 700 mln EUR Net sales approx. 440 mln EUR Net sales approx. 750 mln. EUR Performance Transfer of sophisticated logistics solutions to existing and new customers Measures to maintain current profitability levels Further professionalization and closer integration of hauls / sites Growth Following customers internationally Opening of special networks Organic growth in the existing network Selective additions in growth markets Value added services Opening towards supra-regional partnerships and cooperations 9

11 Efficient and Effective Division of Tasks and Responsibilities Responsibility to manage the Thiel Group Bundling of similar business processes in business segments Integration of alike regional and industry-oriented logistics, IT and purchasing processes in the business segments Logistics services provision, innovation and professional approach towards customer solutions and land transportation Bundling of administrative functions 10

12 Thiel Executive Committee Berndt-Michael Winter Dr. Antonius Wagner Klaus Hrazdira Helmut Kaspers Detlef Kükenshöner CEO CFO COO Solutions COO Air & Ocean COO Road & Rail *1954 * 1961 * 1963 *1965 *1961 Chairman of Thiel Board of Directors since 2002; CEO of DELTON AG since 1999 Vice-Chairman of Thiel Board of Directors since 2002; CFO of DELTON AG since 2002 Executive Member of Thiel Board of Directors since 2006; CEO of Quehenberger Group since 2003; CEO of Birkart Globistics air + ocean since 2007 CEO of Thiel FashionLifestyle since 2006 Previously: Managing Director at Lafarge Group and Mast- Jägermeister AG Previously: Management Positions at Bosch Group and Lafarge Group Previously: Managing Director at US Logistics Group Expeditors Previously: Regional Director Kühne + Nagel; Executive Vice President Oceanfreight Schenker Previously: Managing Director Birkart Globistics; Managing Director System Alliance 11

13 Strategic Sales and Earnings Expectations Sales in mln Euro EBIT margins Approx. 2,500 Medium term target 3% 3.0%- 3.5% 2.0% - 2.5% 4.0% - 4.5% % - 3.5% Solutions Air & Ocean Road & Rail Group Group Road & Rail Air & Ocean Solutions 12

14 Rebranding as Final Step towards Full Group Integration Rebranding Ahead 13

15 Agenda Market and Business Profile New Management Structure Financial Review and Outlook Half-Year Results

16 HY 2007 Key Financials Half-Year Δ in % 2nd Quarter Δ in % Net Sales 1, % % Earnings EBIT before Restructuring Costs EBIT-Margin % % 9.4% % % -17.9% EBIT % % Net Result % Cash Flow Operating Cash Flow Net Cash Flow (EUR in million) 15

17 HY 2007 Sales Analysis , % ~ ~ Net sales HY 2006 Significant Customer Project Losses e.g. FAG/INA Exchange Rate Effects Acquisitions Consolidations Additional Growth Net sales HY 2007 (EUR in million) 16

18 HY 2007 EBIT Development since EBIT H1 Discontinued Operations EBIT H1 Adj. EBIT H1 Deconsolidation Effect PD Logistics Reorg. Freshnet; Divestment Risks EBIT H1 Adj. EBIT H1 Divestment Quehenberger Terminal Restructuring costs EBIT H1 Adj. (EUR in million) 17

19 HY 2007 Segment Reporting Industry Solutions Air & Ocean Regional Logistics Services % Sales % % Segment Result (EUR in million) Proceeds from the disposal of PD Logistics (3.1 million euros) 18

20 HY 2007 Income Statement Half-Year Δ in % 2nd Quarter Δ in % Net Sales 1, % % Purchased Services % of Net Sales Other Cost of Sales % % % -3.8% % % % 2.8% Gross Profit % % SG&A % % EBIT before Restructuring Costs % of Net Sales % % 9.4% % % -17.9% Restructuring Costs Interest Expenses, net Income Taxes Net Result % -26.2% 12.1% % -87.4% (EUR in million) 19

21 HY 2007 Balance Sheet HY FY Liabilities and HY FY Assets Shareholders Equity Cash and Cash Equivalents Financial Liabilities Leasing Liabilities Trade Accounts Receivable Trade Accounts Payable Other Assets Other Liabilities, Provisions Intangible and Fixed Assets Bonds Payable Goodwill Shareholders Equity Total Total (EUR in million) 20

22 HY 2007 Working Capital Development* Change in Accounts Receivable Change in Accounts Payable Change in Inventories Change in Other Assets Change in Working Capital Growth Effects Change in Customer Projects and in Supplier Base - Change in IT-Systems - Invoicing Backlogs - Reorganization (Early Payments) (EUR in million) * as against December 31,

23 HY 2007 Cashflow Statement Half-Year Δ in % 2nd Quarter Δ in % EBITDA % % Interest Payments % % Income Tax Payments % % Changes in Working Capital Operating Cash Flow Capital Expenditure % % Divestments % % Acquisitions Cash Flow from Investing Activities Net Cash Flow 1) Changes in Bank Borrowings Cash Flow from Financing Activities % % Free Cash Flow 2) (EUR in million) 1) Net Cash Flow = Operating Cash Flow Cash Flow from Investing Activities 2) Free Cash Flow = Operating Cash Flow Capital Expenditure 22

24 Outlook Continued growth trend strengthened by organic revenue increase Continuous EBIT improvement targeted with margin goal of three percent: Elimination of remaining weaknesses / restructuring (mainly Road & Rail) Efficient organisation and lean processes Shift of sales mix towards Solutions and Air & Ocean business Main risk to improvement in net result 2007 is the insolvency of Thiel Furniture s main customer Schieder Group 23

25 Thiel Logistik AG Investor Meetings August 31, 2007