_{*Proposal to the Annual General Meeting on May 8, 2024}

Kuehne+Nagel's business results normalised in 2023 following the special economic situation in the years 2021 and 2022. The Group's net turnover amounted to CHF 23.8 billion in 2023, EBIT to CHF 1.9 billion and net profit to CHF 1.5 billion. In the fourth quarter one-off redundancy costs of CHF 53 million were recorded. The conversion rate, which describes the ratio of EBIT to the gross profit, was 22%.

Stefan Paul, CEO of Kuehne+Nagel International AG: 

"Kuehne+Nagel closed the financial year 2023 with an overall good performance in a persistently challenging environment. We adjusted our cost base to market conditions by intensifying restructuring measures in the fourth quarter. At the same time, we succeeded in gaining market share in Sea Logistics, especially in the SME segment. We signed two important acquisitions with Morgan Cargo from South Africa and Farrow from Canada. We are making solid progress toward our Roadmap 2026 goals." 

Sea Logistics

Net turnover in Sea Logistics amounted to CHF 8.6 billion and EBIT to CHF 1.0 billion in the financial year 2023. The conversion rate remained at a high level of 44%. 

The container volume totalled 4.3 million TEU at the end of December 2023. In an overall declining market, the business unit recorded volume growth in the second half of the year, particularly in the SME segment. Market share gains expanded on the Asia-Europe and transpacific routes, amongst others. 

Air Logistics

Net turnover in Air Logistics was CHF 6.9 billion and EBIT CHF 555 million in the financial year 2023, with a conversion rate of 31%. 

Nearly two million tonnes of air freight were handled by Kuehne+Nagel between January and December 2023. The e-commerce and perishables segments performed particularly well. In November 2023, Kuehne+Nagel completed the acquisition of the South African company Morgan Cargo. 

Road Logistics

Net turnover in Road Logistics was CHF 3.5 billion and EBIT CHF 133 million in the financial year 2023, with a volume of just under 23 million orders. Following a solid business performance in the first half of 2023, shipment volume demand declined in the second half of the year. 

In November 2023, the acquisition of the Canadian customs broker Farrow was announced and closed in January 2024. 

Contract Logistics

With net turnover of CHF 4.8 billion and EBIT of CHF 200 million, Contract Logistics reported another year of improved financial performance in 2023. The EBIT represented an all-time high for the business unit and reflects a 6% conversion rate. 

The focus on e-commerce and healthcare logistics yielded above-average growth in these segments and had a positive impact on the business mix. 

Dividend

At the Annual General Meeting to be held on May 8, 2024, the Board of Directors will propose the payment of a dividend of CHF 10.00 per share, consisting of CHF 8.25 per share from retained earnings and CHF 1.75 per share from repayment of capital contribution reserves. This corresponds to a dividend yield of 3.9%.

Dr. Joerg Wolle, Chairman of the Board of Kuehne+Nagel International AG:

"Kuehne+Nagel performed well in the challenging year 2023. We continued to expand our global market lead. This is also based on a high and growing market relevance in the increasingly important world regions such as Asia and the North Pacific trade lanes. 

The company aims to be leading in terms of customer experience and in cost efficiency. The strategy developed and successfully implemented several years ago is bearing fruit. We are continually refining this strategy and adapting it to changes in the market. This creates a decisive competitive edge – even during more difficult phases of the market cycle. By proposing a dividend of CHF 10.00 per share for the financial year 2023, we would like our shareholders to participate in the company's success."

The start of the 2023 business year was marked by geopolitical and inflation-related challenges worldwide. In parallel, the supply chain environment quickly normalised after the boom years of 2021 and 2022. Although demand for transport services declined as expected, the Kuehne+Nagel Group achieved solid results. The corona-related special economic situation distorts the comparison with the previous year. In the context of a normalised business environment and compared to the business performance before the pandemic, the first quarter of 2023 represents a record result.

Net turnover for the first three months of 2023 was CHF 6.7 billion, EBIT CHF 612 million and net earnings totaled CHF 462 million. The conversion rate, which describes the ratio of EBIT to gross profit of the Group, remained at a high level of 26%.

Stefan Paul, CEO of Kuehne+Nagel International AG:

"The macroeconomic environment remained extremely challenging at the start of 2023. This does not come as a surprise as signs of significant weakening emerged last autumn, following the period of extraordinary, pandemic-related demand for logistics services.

With our focus on cost control through the consistent exploitation of the asset light model, the Kuehne+Nagel Group was able to hold its own in this environment and expand its market share worldwide. We already see early successes from the strategic Roadmap 2026 presented in March."

Sea Logistics

In the first quarter of 2023, net turnover of the Sea Logistics business unit was CHF 2.7 billion and EBIT totaled CHF 344 million. The conversion rate stayed at a high level of 50%. The container volume was 987,000 TEU over the first three months of 2023.

Kuehne+Nagel Sea Logistics made significant market share gains, establishing leadership on the transpacific route for the first time.

Air Logistics

In the first quarter of 2023, net turnover of the Air Logistics business unit amounted to CHF 1.9 billion and EBIT to CHF 154 million. The conversion rate was 32%. Air freight volumes were 475,000 tonnes for the first quarter 2023. In an overall declining air freight market, Kuehne+Nagel maintained a stable market share while gaining share in areas like the transport of perishable goods.

As part of a long-term charter agreement with Atlas Air, Kuehne+Nagel took delivery in Seattle of the last Boeing 747 ever produced in February. The jumbo jet will be used primarily for freight on the transpacific route for Kuehne+Nagel’s subsidiary Apex Logistics.

Road Logistics

In the first quarter of 2023, net turnover of business unit Road Logistics amounted to CHF 956 million and EBIT to CHF 52 million. Around 6 million orders were processed in the first quarter. The networks continued to be well utilised, enabling the unit to post a record quarterly result.  

In March, Kuehne+Nagel put the first 23 electric trucks into operation in France, which will be used primarily in urban environments.

Contract Logistics

In the first quarter of 2023, net turnover of the Contract Logistics business unit was CHF 1.3 billion with EBIT of CHF 62 million. The focus on high value-added customer segments and the high utilisation of warehouse space again led to an increase in profitability to a new record level.

With the opening of a new distribution centre for Decathlon, the French sporting goods retailer, the business unit expanded logistics capacity for this customer in Latin America by around 30%. The new facility in Chile is equipped with state-of-the-art robotics for omnichannel picking.

_{*Proposal to the Annual General Meeting on May 9, 2023}

Kuehne+Nagel closed the 2022 financial year with an exceptionally strong result. Group net turnover increased by 20% to CHF 39.4 billion, EBIT by 28% to CHF 3.8 billion and net profit by 30% to CHF 2.8 billion. The conversion rate, which describes the ratio of EBIT to gross profit of the Group, was 33.9%. All business units contributed significantly to the company's success. Due to the overall economic slowdown, the result in the fourth quarter of 2022 was weaker compared to the rest of the year.

From today's perspective, the macroeconomic environment will remain challenging in 2023 due to geopolitical developments and inflation. However, we expect the positive growth and earnings trend that has continued for many years to continue this year, albeit excluding the exceptional business volumes and results in financial years 2021 and 2022, which were the result of a corona-related special economic situation. 

Stefan Paul, CEO of Kuehne+Nagel International AG: 

"The 2022 financial year was exceptional for Kuehne+Nagel in many respects – a year of great financial success, but also with challenges for us and our customers. Thanks to our dedicated employees, we were able to provide our customers around the world with high-quality logistics services. 

Now is the right time to launch our new strategic Roadmap 2026 and ensure Kuehne+Nagel's sustainable future success with a dedicated focus on quality, customer satisfaction and employee motivation. "

Sea Logistics

In the financial year 2022, net turnover of the Sea Logistics business unit amounted to CHF 18.8 billion and EBIT to CHF 2.0 billion. The conversion rate reached 58.1%. Container volume was 4.4 million TEU at the end of December 2022. The margin per container was at a historically high level in 2022. 

In the second half of 2022, complexity in the global ocean freight markets decreased. 

Air Logistics

Net turnover in the Air Logistics business unit was CHF 11.7 billion and EBIT CHF 1.4 billion in the 2022 financial year. The conversion rate reached 47.5%. Airfreight volume was 2.2 million tonnes at the end of December 2022. The margin per 100 kilograms was at a very high level for the full year 2022. 

Demand for cargo capacity remained high on most trade routes. Following the turbulence in commercial aviation in the summer of 2022, supply of capacity remained volatile in the second half of the year. 

Road Logistics

In the 2022 financial year, net turnover of the Road Logistics business unit amounted to CHF 4.0 billion and EBIT to CHF 146 million. 

The networks were well-utilised in all regions. The earnings situation of Road Logistics developed very positively over the course of 2022. 

Contract Logistics

In the 2022 financial year, net turnover in the Contract Logistics business unit amounted to CHF 4.9 billion and EBIT to CHF 187 million. As of December 31, 2022, the business unit managed a total of 10.3 million sqm of warehouse and logistics space. 

The Contract Logistics premises were heavily utilised worldwide. In 2022 alone, the unit implemented more than 150 new logistics projects – often large-scale warehouses with state-of-the-art technology and robotics. 

Regional results

Dividend

The Board of Directors proposes a dividend of CHF 14.00 per share to the Annual General Meeting to be held on May 9, 2023. This corresponds to an increase of 40% compared to the previous year.

Roadmap 2026

At the occasion of the Capital Markets Day on March 1, 2023, the Kuehne+Nagel Group has presented its new strategic Roadmap 2026. The plan is designed for the next four years and represents an organic further development of Roadmap 2022, which was successfully completed at the end of December.

The goal of Roadmap 2026 is to significantly strengthen Kuehne+Nagel's earnings power. The proven asset light model will be retained.

The Roadmap 2026 consists of four mutually supporting, cross-divisional cornerstones:

1.    Kuehne+Nagel Experience: quality, customer satisfaction and employee motivation;

2.    Digital Ecoystem: data and technology as a competitive advantage;

3.    Living ESG: concrete solutions for sustainability;

4.    Market Potential: geographic growth plans and high-margin service offerings.

The Roadmap 2026 contains clearly defined plans, both in terms of the aforementioned focus areas in all four business units and in terms of the targeted results. At Group level, Kuehne+Nagel aims to achieve a conversion rate of 25% to 30% by 2026.

Details of the Roadmap 2026 can be found on the following website: https://roadmap2026.kuehne-nagel.com

Dr. Joerg Wolle, Chairman of the Board of Kuehne+Nagel International AG:

"The Kuehne+Nagel Group performed extremely well in the 2022 financial year and took advantage of the opportunities that emerged from the challenging, extremely complex macroeconomic situation. The company achieved a new record in both net turnover and profit. With a dividend proposal of CHF 14.00 per share for the 2022 financial year, we want our shareholders to participate in the company's success.

At the 2023 Capital Markets Day, the Management Board will present with the Roadmap 2026 the continuous strategic development of Kuehne+Nagel until 2026. In this way, we are setting ourselves the goal of ensuring the company’s success and its further development in the coming years, despite challenging market conditions."

For the first time, the Kuehne+Nagel Group has been included in the Fortune Global 500 list, which is compiled annually by Fortune magazine. With turnover of CHF 36.699 billion in fiscal 2021, Kuehne+Nagel ranks 396th on the list globally and 9th for Switzerland.

The Fortune Global 500 list is the most recognised ranking for the world's largest stock-listed companies, measured primarily by annual turnover and profits. Fortune Global 500 companies generated turnover totaling USD 37.8 trillion in 2021, more than one-third of the world's GDP.

Kuehne+Nagel is the world’s largest sea and air freight forwarder and holds significant positions in road and contract logistics. The Group has built its success on implementing its strategic focus on customers, technology and people, and by surpassing its ambitious financial targets. As a result, Kuehne+Nagel recorded a remarkably strong performance in the 2021 financial year and continued its successful course in the first half-year of 2022.

Dr. Joerg Wolle, Chairman of Kuehne+Nagel International AG, says: „Kuehne+Nagel has demonstrated an impressive strategic ability to adapt and proactively responded to the frequent changes around us. The Group has proven its worth under these particular circumstances and also demonstrated the essential role logistics plays for the society at large. The debut on the Fortune Global 500 list reflects the successful development of Kuehne+Nagel as a world-leading logistics Group.”

Kuehne+Nagel was also recently recognized by the advisory firm Gartner for its customer centricity, pioneering sustainability solutions and being the most visionary market leader for third-party logistics.

_{Fortune 500 is a registered trademark of Fortune.}

Hansjörg Rodi, born in 1966, has held management positions at Kuehne+Nagel since 2016, most recently as the head of the European region with almost 44,000 employees. He has been active in the logistics industry for over 25 years in various management positions. Hansjörg Rodi studied economics and earned his doctorate at the Westphalian University in Münster, Germany.

With CHF 3.7 billion in net turnover in 2021 and around 9,700 employees, Kuehne+Nagel’s business unit Road Logistics is one of the world's leading providers of ground transportation. Kuehne+Nagel customers are offered maximum flexibility and service quality for their general cargo, full truckload (FTL) or part truckload (LTL) shipments. In 2021, the unit handled 24.4 million shipments.

Jens Drewes (born 1969) has been appointed to succeed Hansjörg Rodi in Europe. Jens Drewes has held management positions at Kuehne+Nagel in Asia since 1997, and has been responsible for the Asia Pacific region since 2013.

Kuehne+Nagel has completed the acquisition of Apex International Corporation (“Apex”), following the satisfaction of all closing conditions, including the receipt of unconditional regulatory approvals from the competent authorities.

Apex is one of Asia’s leading freight forwarders, especially on the transpacific and intra-Asia trade routes. In 2020, the company generated turnover of CHF 2.2 billion, gross profit of CHF 296 million and earnings before taxes of CHF 126 million and ranked seventh in terms of global air freight forwarding volume. In the first quarter of 2021, Apex has continued to perform strongly with turnover of CHF 556 million, gross profit of CHF 109 million and earnings before tax of CHF 64 million.

Together, Kuehne+Nagel and Apex offer their customers a compelling value proposition in the competitive Asian logistics industry, especially in e-commerce fulfilment, hi-tech and e-mobility.

Dr. Joerg Wolle, Chairman of Kuehne + Nagel International AG, says: “With the acquisition of Apex, Kuehne+Nagel complements its successful organic growth strategy and substantiates its strong position as one of the world’s largest logistics providers. With this transaction we are expanding the Group’s service offering, networks and potential for growth, in Asia and globally.”

Kuehne+Nagel has acquired the majority of the shares in Apex. A minority participation remains with the Apex management, with the parties retaining customary contractual rights to acquire and sell these shares. The purchase price paid at closing amounts to CHF 1.1 billion and has been financed by the Group’s own funds and approximately 750,000 new Kuehne+Nagel shares issued out of authorized share capital. In addition, over the next three years, Kuehne+Nagel will have the opportunity to acquire all other shares in Apex for a performance-based consideration.

The experienced management team of Apex will continue to run the company, supported by the global network, capabilities and solutions of the Kuehne+Nagel Group.

The economic benefits of the Apex business have been effectively transferred to Kuehne+Nagel with effect from January 1, 2021 as per the terms of the transaction agreement. However, the Apex result will be fully consolidated in Kuehne+Nagel’s financial statements from the closing date of this transaction.

At today's Annual General Meeting (AGM) of Kuehne + Nagel International AG, all proposals were approved by a large majority. The company held the AGM in accordance with Art. 27 para. 1 COVID-19 Ordinance 3 of the Swiss Federal Council as amended on 1 April 2021 without shareholders being present in person. Voting was done through the independent proxy representing 85.57% of the voting shares.

The shareholders approved the status report, the financial statements and the consolidated financial statements as well as the annual financial statements for the 2020 business year after taking note of the audit reports. They approved the distribution of a dividend of CHF 4.50 gross per registered share and the carry forward retained earnings less dividend to new account.

In addition, the AGM granted discharge to the Board of Directors and the Management Board for the 2020 business year with high approval results.

Elections

Board of Directors

Dominik Bürgy, Dr. Renato Fassbind, Karl Gernandt, David Kamenetzky, Klaus-Michael Kühne, Hauke Stars, Dr. Martin Wittig and Dr. Joerg Wolle were re-elected individually for one-year terns until completion of the next AGM.

Tobias B. Staehelin, Swiss citizen, was newly elected to the Board of Directors for the same term.

Chairman of the Board of Directors

By an overwhelming majority of votes, Dr. Joerg Wolle was re-elected as Chairman of the Board of Directors for a further one-year term of office.

Compensation Committee

Shareholders followed the Board of Directors’ recommendation to re-elect Karl Gernandt, Klaus-Michael Kühne and Hauke Stars to the Compensation Committee for another one-year term until completion of the next AGM. Karl Gernandt remains Chairman of this Committee.

Independent Proxy / Statutory Auditor

Investarit AG, Zurich, was elected as independent proxy; the mandate of Ernst & Young AG as statutory auditor for the year 2021 was approved by the AGM.

Remuneration Report

In a consultative vote, shareholders approved the Renumeration Report 2020 by a large majority.

Compensation reconciliations

The total maximum amount of remuneration for the members of the Board of Directors was prospectively approved according to the legal requirements, covering the period until the end of the AGM. In a separate vote, shareholders confirmed the total maximum amount of remuneration for the Management Board, covering the next business year 2021.

The next Annual General Meeting will be held on Tuesday, 3 May 2022.

Schindellegi / CH, April 26, 2021 – Kuehne+Nagel's start to the 2021 business year was marked by a strong demand in transport services, especially for pharma and e-commerce fulfilment. Kuehne+Nagel achieved an excellent result in this environment: net turnover of over CHF 6.0 billion, EBIT of CHF 431 million and earnings for the period of CHF 318 million were all significantly higher year-on-year.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, says: "Exactly one year ago, when we were still at the beginning of the pandemic, we decided to commit to our proven strategy. Upon reflection, we are assured that we chose the correct path: in the first quarter of 2021, we were well-prepared to serve our customers' robust demand for high quality logistics services despite the tense market environment. We expect this environment to remain challenging for the remainder of another atypical year."

Sea Logistics

The positive profit trend reversal in Sea Logistics, already noted in the second half of 2020, continued in the first quarter of 2021. Kuehne+Nagel delivered intensified service to meet exceedingly high customer demands particularly in the US, in an environment of limited container capacities, reduced terminal productivity and increasing demand. Volume growth was particularly strong in the consumer goods segment.

Container volumes in the first quarter of 2021 were up 2% year-on-year at 1.1 million TEU, despite a decline in recyclables demand. The unit’s net turnover was nearly CHF 2.4 billion and EBIT CHF 206 million. The conversion rate reached a record high of 42.7%.

With a new alert feature in the online Seaexplorer platform, Sea Logistics customers are informed promptly about irregularities in container transport. This transparency proved particularly helpful to remedy disrupted supply chains during the Suez Canal incident in March.

Air Logistics

Air Logistics saw a return to trade volume growth in the first quarter of 2021, the first time in more than two years. This was contrasted by limited global freight capacities. Kuehne+Nagel's expertise in dealing with this bottleneck was particularly crucial for the transport of pharma and essential goods.

Airfreight volumes developed positively, reaching 433,000 tonnes in the first quarter of 2021 (16% year-on-year). Combined with strong yields, net turnover improved to CHF 1.7 billion and EBIT to CHF 163 million. The conversion rate was 40.5%.

Further progress was made in the digitalisation and automation of Air Logistics processes (eTouch). This development was particularly advanced in the booking processes, invoicing and documentation.

Road Logistics

In Road Logistics, the first quarter of 2021 was characterised by a significant increase in consignment numbers and a return of European national transport capacities to prior year levels. After a weak start, UK transport demand recorded a noticeable recovery throughout the remainder of the quarter.

The unit’s net turnover of CHF 870 million in the first quarter of 2021 was at the previous year's level; however, EBIT of CHF 24 million improved by 41.2% year-on-year.

Originally designed for Asia, the online booking platform for Road Logistics, eTrucknow, was successfully launched in Australia and Russia in the first quarter of 2021.

Contract Logistics

In the first quarter of 2021, Contract Logistics returned to organic growth of 4%, in line with the market. As a result of the divestment of part of the UK business as of January 1, 2021, turnover declined in the first quarter of 2021.

The unit’s net turnover of over CHF 1.1 billion was 9.3% below the previous year; EBIT, however, increased by 123.5% to CHF 38 million.

The pharma business and e-commerce fulfilment activities again had a positive impact. In March, the business unit entered into a strategic partnership with Jointown, the largest non-state pharmaceutical distributor in China.

Tobias B. Staehelin is admitted to the bar and specialises in corporate law. He graduated from the University of St. Gallen with a degree in law. In addition to a CEMS Master's degree in International Management, he holds an LL.M. from Northwestern University, USA, and the Instituto de Empresa, Spain. Staehelin is a Swiss citizen.

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG, says: "We are pleased that with Tobias B. Staehelin, an internationally well-connected personality with operational management experience in European and Asian markets, is proposed for election to the Board of Directors of Kuehne + Nagel International AG.ˮ

*Proposal to the Annual General Meeting on May 4, 2021

The year 2020 was characterised by a weak first and a strong second semester. Kuehne+Nagel achieved a remarkably good result in an environment marked by crisis. Operational profit was above the previous year; total reported net earnings of the year decreased only slightly compared to 2019.

Net turnover of CHF 20.4 billion for the full year 2020 was below the 2019 figure due to lower volumes in the first half; EBIT, on the other hand, was almost one percentage point higher at CHF 1.1 billion. Currency fluctuations had a significant negative effect of -6% on both net turnover and EBIT. Free cash flow increased by 27.7%.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, says: "Last year we proved what makes Kuehne+Nagel successful: within a very short period of time, we adapted to the volatile market environment. We won new business and at the same time were able to position ourselves as a reliable and responsible partner for our customers and suppliers."

Sea Logistics

The profit development of Sea Logistics recorded a very pleasing turnaround in the second half of 2020 compared to the first half of the year. Particularly in the fourth quarter, the improvement was due to the renewed increase in demand from customers in the SME sector as well as the increase in imports from Asia to Europe and North America – an extension of trends which first emerged in the third quarter.

The container volume in 2020 was 4.5 million TEU. The business unit’s net turnover was CHF 7.1 billion and EBIT CHF 423 million. The conversion rate reached 29.9%.

In Sea Logistics, the offer to neutralise the CO2 emissions of shipments was well received by customers. In addition, the online platform Seaexplorer was further developed: it now offers details on the CO2 emissions of every service and port pair.

Air Logistics

*Including a positive one-off effect of CHF +63 million in Q3 2020 and a negative one-off effect of CHF -14 million in Q4 2019.

Air Logistics has proven to be the preferred transport solution in dealing with the Covid-19 crisis. The high demand for Kuehne+Nagel's expertise in pharma and essential goods led to excellent results.

For the full year 2020, net turnover for the business unit improved by 11.6% to CHF 5.2 billion and EBIT by 53.5% to CHF 505 million. The conversion rate reached 37.9%. Overall, 2020 airfreight volumes were 1.4 million tonnes (12.8% below the previous year) and in the fourth quarter alone 392,000 tonnes or 7.5% below the same period last year.

With its Net Zero Carbon programme, Kuehne+Nagel is a pioneer in climate-friendly logistics services. For shipments flown on the air freight route Los Angeles – Amsterdam, Sustainable Aviation Fuel (SAF) has been used exclusively since January 2021.

Road Logistics

In Road Logistics, the fourth quarter of 2020 was characterised by a significant increase in number of shipments compared to the previous quarter. In particular, demand for domestic transport in Europe reached pre-crisis levels. In North America, demand for all product segments, with the exception of pharma & healthcare as well as e-commerce, remained significantly behind the previous year. However, a further market recovery was noticeable in the last quarter.

The business unit’s net turnover in 2020 was CHF 3.2 billion and EBIT CHF 62 million.

The digital platform Your Easy Brexit Solution, developed by Kuehne+Nagel, enables the uninterrupted shipment of goods to and from the UK. With this digital solution, Kuehne+Nagel customers can handle customs processes automatically, including document verification before the physical transport of goods.

Contract Logistics

*Including net negative one-offs of CHF -42 million in FY 2020 (Q4 2020: CHF -46 million) inter alia from the divestment of parts of the Contract Logistics activities in the UK. FY 2019 figures include positive one-offs of CHF +66 million (Q4 2019: CHF +43 million).

Contract Logistics achieved market share gains in pharma & healthcare and in e-commerce fulfilment as well as productivity gains.

In 2020, the business unit’s net turnover reached CHF 4.9 billion and EBIT of CHF 80 million. Adjusted for extraordinary effects in 2019 and 2020, EBIT decreased by 7.6%.

Integrated Logistics services (4PL) were in particularly high demand in 2020. At eight global locations with KN Control Towers, specialists develop and operate solutions for flexible and efficient supply chains. This enables costs, throughput times and customers' inventories to be optimised even in volatile times.

Regional results

Dividend

The Board of Directors proposes a dividend of CHF 4.50 per share to the Annual General Meeting to be held on May 4, 2021.

Comment of the Chairman of the Board of Directors

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG, says: "We were able to close the year 2020 with a record operating result – this shows the strength and resilience of our company. Kuehne+Nagel stands for entrepreneurial vision, dynamism and a highly motivated team who is fully committed to serving our customers and business partners. With the successful completion of the restructuring of Contract Logistics, we are now ideally equipped for continued positive development. In view of Asia being the world's fastest growing economic region, the announcement of the acquisition of Apex Logistics in February 2021 is a significant milestone. The Board of Directors looks forward to the year 2021 with confidence."

Annual Report 2020

Further information on the annual results and the 2020 Annual Report can be found on the Kuehne+Nagel website at https://2020-annual-report.kuehne-nagel.com/.

• Strong improvement in key operating figures
• Strict cost management drove earnings growth
• Improved market environment supported Q3 performance
• Free cash flow strengthened
• Group ready for potential distribution of Covid-19 vaccines

The Kuehne+Nagel Group demonstrated profitable growth in the third quarter of 2020, following a first half year marked by the coronavirus pandemic. On a currency-adjusted basis, the company significantly improved key operating figures in the third quarter.

Net turnover for the first nine months amounted to CHF 14.8 billion and EBIT to CHF 790 million. Currency fluctuations had a significant negative impact on both net turnover (-5.7%) and EBIT (-5.9%) for the first nine months. Free Cash Flow increased by 31.4% in the first nine months.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, said: "With our motivated team, we are ready for further growth together with our customers, especially in the pharma & healthcare and e-commerce sectors. Even though we expect considerable uncertainties in the coming months, we are well prepared".

_{*Seabury Consulting Capacity Tracking Database (September 2020)}

Sea Logistics

In the third quarter of 2020, the earnings development in Sea Logistics reflected a very positive reversal of trend compared to the first half of the year. The improvement is due to the recovery of demand from SME customers and the increase in imports to Europe and North America from Asia.

In the third quarter of 2020, container volume rose by 10.4% to 1.2 million TEUs compared to the second quarter. The unit’s net turnover amounted to almost CHF 1.8 billion and EBIT improved by 12.3% year-on-year to CHF 137 million. The conversion rate reached 36.2%.

Process optimisation via local Customer Care Locations and central Operational Care Centres supported effective cost management and the future expansion of Kuehne+Nagel's leading market position.

Air Logistics

_{*adjusted for a positive one-off impact of net CHF 63 million in Q3 2020 due to early settlement of the contingent consideration of an acquisition in 2018.}

Improved market conditions in the third quarter of 2020, including the automotive sector and perishable goods, led to a greater than normal seasonal uplift in Air Logistics volumes versus the second quarter. Crisis goods, on the other hand, increasingly shifted to alternative transport routes.

At 354,000 tonnes, air freight volume in the third quarter was 12.8% lower than in the same period of the previous year, while net turnover increased by 8.7% to CHF 1.2 billion and EBIT by 89.9% to CHF 169 million. This includes a positive one-off impact of net CHF 63 million due to early settlement of the contingent consideration of an acquisition from 2018.

In September 2020, Air Logistics opened new pharma hubs in Brussels and Johannesburg with direct tarmac access. The even faster handling of goods and the guarantee of product integrity will provide customers with considerable added value, especially for temperature-sensitive vaccines.

Road Logistics

The third quarter of 2020 was characterised by a significant increase in shipments in the Road Logistics business unit versus the previous quarter. In particular, demand for domestic transport capacities in European countries reached pre-crisis levels. In North America, demand for all product segments – with the exception of pharma & healthcare and e-commerce – remained significantly below the previous year's level; however, an initial market revival has been evident since September.

The business unit’s net turnover decreased to CHF 796 million in the third quarter and EBIT was down to CHF 12 million. The continued very weak demand for expo and event logistics had a significant negative impact on the result.

Kuehne+Nagel is preparing – together with its customers – for the future customs clearance (export and import) between the EU and the UK with a digital solution (Your Easy Brexit Solution).

Contract Logistics

Market share gains in pharma & healthcare services and in e-commerce fulfilment as well as stringent cost management led to a significant improvement in earnings in Contract Logistics in the third quarter of 2020 compared to the second quarter.

The business unit’s net turnover in the third quarter was CHF 1.2 billion and EBIT was CHF 53 million. Adjusted for extraordinary income in the third quarter of 2019 and 2020 from real estate sales of CHF 21 million, and CHF 4 million respectively, EBIT increased by 44%.

The business unit is continuing to expand its e-commerce fulfilment activities which are driving a significant proportion of new business wins. In Sweden, for example, Kuehne+Nagel will operate a new distribution centre for Amazon.

• Extraordinary General Meeting of Kuehne + Nagel International AG approves new allocation of available net profit 2019

At today's Extraordinary General Meeting of Kuehne + Nagel International AG, shareholders overwhelmingly approved the new allocation of available net profit for the business year 2019, which was carried forward by the ordinary Annual General Meeting on May 5, 2020.

As of September 8, 2020, an ordinary dividend of CHF 4.00 gross per share less 35% Swiss withholding tax (i.e. CHF 2.60 net) will be paid out. The remaining profit less the dividend will be carried forward.

• Operational excellence secures global supply chains
• Market share gains and high quality of service
• Careful capacity planning and active cost management
• Board of Directors schedules Extraordinary General Meeting on September 2, 2020; proposal of CHF 4.00 dividend per share from 2019 retained earnings

Schindellegi / CH, July 21, 2020 – In light of the challenges posed by the coronavirus pandemic and the global lockdown, the Kuehne+Nagel Group achieved a good result in the second quarter of 2020. Market share gains and the cost savings initiated throughout the Group had a positive impact. Net turnover for the first half-year was CHF 9.8 billion and EBIT was CHF 419 million. Currency fluctuations had a significant negative impact on both net turnover (-5.9%) and EBIT (-5.3%) in the first half-year. Free cash flow increased by 5.5% relative to the prior year.

Dr. Detlef Trefzger, CEO of Kuehne + Nagel International AG, commented: "The crisis triggered by the coronavirus pandemic, which led to a lockdown in most countries, had profound and sudden negative impacts on international trade. We took the right measures early on and successfully managed Kuehne+Nagel under these difficult conditions. We expect the second half of the year to continue to be marked by major uncertainties, for which Kuehne+Nagel is well prepared thanks to its agile structure, rigorous cost management and high-quality service offerings.”

Dr. Joerg Wolle, Chairman of the Board of Directors of Kuehne + Nagel International AG, commented: "The strategic course we have set at Kuehne+Nagel in recent years is also having a positive effect in the midst of the coronavirus crisis. The company has been consistently digitalised and thus remained fully operational throughout the crisis. The successful performance in the second quarter is owed to the good market position of Kuehne+Nagel and the recovery of the Asian markets. The good work during these past months underlines today’s high level of resilience of Kuehne+Nagel."

Sea Logistics

In the first half of the year, a clearly negative market environment translated to reduced shipping volumes and a decline in business for Sea Logistics. Kuehne+Nagel was able to gain market share in select, high-yielding industries including pharma, reefer transport and e-commerce. The good volume development in these areas and the cost management did not fully compensate the significant decline in the high-yielding SME customer portfolio.

In the second quarter of 2020, container volume declined by 11.7% year-on-year to 1.1 million TEU. Sea Logistics net turnover fell to almost CHF 1.7 billion and EBIT to CHF 88 million.

Customer interest in CO2-neutral sea freight solutions remained high despite the volatile market environment. The focus was primarily on complete solutions for climate-neutral supply chains.

Air Logistics

A high demand for crisis goods in the second quarter 2020 led to a short-term, beneficial shift in the product mix. Furthermore, the Air Logistics business unit purchased charter capacity for its customers on a targeted basis as belly capacity on passenger flights was not available during the second quarter of 2020.

These factors, combined with active cost management, produced attractive profitability along with expanded market share. With the gradual resumption of passenger services since June, a slight normalisation of the general market conditions is visible.

At 315,000 tonnes, air freight volume in the second quarter of 2020 was 22.0% below the same period of the previous year. Net turnover rose to CHF 1.4 billion and EBIT to CHF 110 million.

Further progress was made in the automation of processes, especially in the implementation of AirLOG, Kuehne+Nagel’s proprietary transport management solution and key to digitalisation.

Road Logistics

The months of April and May 2020 were characterised by a significant decline in Road Logistics order volume. However, demand noticeably revived since the month of June. In particular, the demand for domestic European transport has broadly improved to pre-crisis levels. In North America, demand for all product segments – with the exception of pharma and e-commerce – was significantly lower than in the previous year.

The business unit’s net turnover declined to CHF 721 million in the second quarter of 2020 and EBIT was down to CHF 9 million.

Due to the high level of market acceptance, the digital booking platform eTrucknow was extended to additional countries in Asia.

Contract Logistics

In Contract Logistics, the significant reduction in demand in the second quarter of 2020 was mitigated by stringent cost management. Essential goods and e-commerce, which now account for around half of the Contract Logistics portfolio, recorded significantly higher demand. Securing operations, even during the lockdown, resulted in market share gains.

The business unit’s net turnover declined to CHF 1.1 billion and EBIT to CHF 28 million in the second quarter of 2020.

With tailor-made solutions, Contract Logistics will continue to expand its market position in the pharma and e-commerce fulfillment sectors.

Extraordinary General Meeting

The Board of Directors of Kuehne + Nagel International AG has decided to propose a dividend of CHF 4.00 per share to shareholders at an Extraordinary General Meeting on September 2, 2020.

"Management and the Board of Directors have continuously assessed and proactively addressed the developments and economic situation during the pandemic. In view of the good results, the strong resilience of the company, the stable cash flow and the available liquidity, we have decided to propose to the shareholders an appropriate participation in the company's success in 2019 with a dividend of CHF 4.00 per share," said Dr. Joerg Wolle, Chairman of the Board of Directors. "Notwithstanding the gradual easing of the market situation, Kuehne+Nagel will continue to closely monitor the effects of the corona crisis in the second half of the year."