Kuehne und Nagel International : Analyst nine-months results 2023 Financial Statement

Condensed Consolidated Interim Financial Statements 2022

Quarterly Report 2023

Condensed

Consolidated

Interim Financial

Statements 2023

(unaudited)

January - September 2023

Condensed consolidated interim financial statements 2023

3

Contents

Income statement	4
Statement of comprehensive income	5
Balance sheet	6
Statement of changes in equity	8
Cash flow statement	10
Notes to the condensed consolidated
interim financial statements	12
Financial calendar	23

Schindellegi, October 24, 2023

4	Condensed consolidated interim financial statements 2023

Income statement

CHF million

January - September		July - September
		Variance			Variance
2023	2022	in per cent	2023	2022	in per cent

Net turnover	18,159	30,603	-40.7	5,438	9,972	-45.5
Net expenses for services from third parties	-11,431	-21,993		-3,359	-7,260
Gross profit	6,728	8,610	-21.9	2,079	2,712	-23.3
Personnel expenses	-3,614	-3,849		-1,167	-1,262
Selling, general and administrative expenses	-973	-1,093		-274	-369
Other operating income/expenses, net	17	21		2	28
EBITDA	2,158	3,689	-41.5	640	1,109	-42.3
Depreciation of property, plant and equipment	-130	-140		-43	-44
Depreciation of right-of-use assets	-406	-379		-137	-125
Amortisation of other intangibles	-41	-51		-14	-16
EBIT	1,581	3,119	-49.3	446	924	-51.7
Financial income	65	43		14	16
Financial expenses	-18	-15		-7	-4
Result from joint ventures and associates	4	4		2	1
Earnings before tax (EBT)	1,632	3,151	-48.2	455	937	-51.4
Income tax	-451	-835		-134	-249
Earnings	1,181	2,316	-49.0	321	688	-53.3
Attributable to:
Equity holders of the parent company	1,171	2,191	-46.6	315	654	-51.8
Non-controlling interests	10	125		6	34
Earnings	1,181	2,316	-49.0	321	688	-53.3
Basic earnings per share in CHF	9.86	18.37	-46.3	2.65	5.48	-51.6
Diluted earnings per share in CHF	9.85	18.27	-46.1	2.65	5.45	-51.4

Income statement/Statement of comprehensive income

5

Statement of comprehensive income

CHF million

January	- September	July - September
2023	2022	2023	2022

Earnings	1,181	2,316	321	688
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign exchange differences	-258	-20	-10	-49
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) on defined benefit plans	12	164	17	4
Income tax on actuarial gains/(losses) on defined benefit plans	-3	-41	-4	-1
Total other comprehensive income, net of tax	-249	103	3	-46
Total comprehensive income	932	2,419	324	642
Attributable to:
Equity holders of the parent company	953	2,300	313	618
Non-controlling interests	-21	119	11	24

6	Condensed consolidated interim financial statements 2023

Balance sheet

CHF million

Sep. 30, 2023

Dec. 31, 2022

Sep. 30, 2022

Assets

Property, plant and equipment	736	739	679
Right-of-use assets	1,560	1,418	1,366
Goodwill	2,113	2,199	2,263
Other intangibles	135	180	199
Investments in joint ventures and associates	38	37	38
Deferred tax assets	174	220	194
Non-current assets	4,756	4,793	4,739
Prepayments	183	112	146
Contract assets	294	540	671
Trade receivables	3,805	5,291	6,381
Other receivables	176	215	183
Income tax receivables	74	22	39
Cash and cash equivalents	1,967	3,778	2,946
Current assets	6,499	9,958	10,366
Total assets	11,255	14,751	15,105

Balance sheet

7

CHF million

Sep. 30, 2023

Dec. 31, 2022

Sep. 30, 2022

Liabilities and equity

Share capital	121	121	121
Reserves and retained earnings	1,851	1,375	1,541
Earnings	1,171	2,644	2,191
Equity attributable to the equity holders of the parent company	3,143	4,140	3,853
Non-controlling interests	7	7	8
Equity	3,150	4,147	3,861
Provisions for pension plans and severance payments	237	252	193
Deferred tax liabilities	75	98	137
Borrowings	200	200	200
Non-current provisions	55	59	54
Other non-current liabilities	873	1,159	1,164
Non-current lease liabilities	1,151	1,026	995
Non-current liabilities	2,591	2,794	2,743
Bank and other interest-bearing liabilities	4	8	203
Trade payables	1,972	2,731	2,848
Contract liabilities	215	280	272
Accrued trade expenses	1,230	1,976	2,255
Income tax liabilities	266	493	571
Current provisions	85	118	110
Other current liabilities	1,250	1,738	1,806
Current lease liabilities	492	466	436
Current liabilities	5,514	7,810	8,501
Total liabilities and equity	11,255	14,751	15,105

Schindellegi, October 24, 2023

Kuehne + Nagel International AG

Stefan Paul	Markus Blanka-Graff
CEO	CFO

8	Condensed consolidated interim financial statements 2023

Statement of changes in equity

CHF million	Share capital	Share premium	Treasury shares
Balance as of January 1, 2023	121	606	-270
Earnings	-	-	-
Other comprehensive income

Foreign exchange differences	-	-
Actuarial gains/(losses) on defined benefit plans, net of tax	-	-

-

-

Total other comprehensive income, net of tax	-	-
Total comprehensive income	-	-

-

-

Purchase of treasury shares 1	-	-	-599
Disposal of treasury shares 1	-	-13	383
Dividend paid 2	-	-	-
Expenses for share-based compensation plans	-	-	-
Transaction with non-controlling interests 3	-	-	-

Balance as of September 30, 2023

121

593

-486

1. Refer to note 12 for further details.
2. 2023 Kuehne+Nagel dividend: The Company paid CHF 14.00 dividends per share.
3. The movement in retained earnings relates to written put options on non-controlling interests in connection with the Apex acquisition, see note 40 of the consolidated financial statements for the year ended December 31, 2022.

CHF million	Share capital	Share premium	Treasury shares
Balance as of January 1, 2022	121	651	-93
Earnings	-	-	-
Other comprehensive income
Foreign exchange differences	-	-	-
Actuarial gains/(losses) on defined benefit plans, net of tax	-	-	-
Total other comprehensive income, net of tax	-	-	-
Total comprehensive income	-	-	-
Purchase of treasury shares 1	-	-	-598
Disposal of treasury shares 1	-	-57	482
Dividend paid 2	-	-	-
Expenses for share-based compensation plans	-	-	-
Transaction with non-controlling interests 3	-	-	-

Balance as of September 30, 2022

121

594

-209

1. Refer to note 12 for further details.
2. 2022 Kuehne+Nagel dividend: The Company paid CHF 10.00 dividends per share.
3. The movement in retained earnings relates to written put options on non-controlling interests in connection with the Apex acquisition, see note 40 of the consolidated financial statements for the year ended December 31, 2022.

Statement of changes in equity

9

Cumulative translation adjustment

-1,406

-

-227

-

-227

-227

-

-

-

-

-31

-1,664

		Total equity attributable
Actuarial gains/		to the equity holders
(losses)	Retained earnings	of parent company	Non-controlling interests	Total equity
-65	5,154	4,140	7	4,147
-	1,171	1,171	10	1,181
-	-	-227	-31	-258
9	-	9	-	9
9	-	-218	-31	-249
9	1,171	953	-21	932
-	-	-599	-	-599
-	-	370	-	370
-	-1,661	-1,661	-172	-1,833
-	19	19	-	19
-	-48	-79	193	114
-56	4,635	3,143	7	3,150

Cumulative translation adjustment

-1,214

-

-14

-

-14

-14

-

-

-

-

-6

-1,234

		Total equity attributable
Actuarial gains/		to the equity holders
(losses)	Retained earnings	of parent company	Non-controlling interests	Total equity
-144	3,883	3,204	7	3,211
-	2,191	2,191	125	2,316
-	-	-14	-6	-20
123	-	123	-	123
123	-	109	-6	103
123	2,191	2,300	119	2,419
-	-	-598	-	-598
-	-	425	-	425
-	-1,186	-1,186	-74	-1,260
-	18	18	-	18
-	-304	-310	-44	-354
-21	4,602	3,853	8	3,861

10	Condensed consolidated interim financial statements 2023

Cash flow statement

January - September

CHF million

Note

2023

2022

Variance

July - September

2023

2022

Variance

Cash flow from operating activities

Earnings	1,181	2,316		321	688
Adjustments to reconcile earnings to net cash flows:
Income tax	451	835		134	249
Financial income	-65	-43		-14	-16
Financial expenses	18	15		7	4
Result from joint ventures and associates	-4	-4		-2	-1
Depreciation of property, plant and equipment	130	140		43	44
Depreciation of right-of-use assets	406	379		137	125
Amortisation of other intangibles	41	51		14	16
Expenses for share-based compensation plans	19	18		6	6
(Gain)/loss on disposal of property,
plant and equipment, net	-12	-29		-	-28
Net addition to provisions for pension plans
and severance payments	3	4		1	1
Subtotal operational cash flow	2,168	3,682	-1,514	647	1,088	-441
(Increase)/decrease contract assets	227	-10		39	46
(Increase)/decrease trade and
other receivables, prepayments	1,235	-45		159	26
Increase/(decrease) provisions	-34	36		-20	8
Increase/(decrease) other liabilities	-232	122		48	140
Increase/(decrease) trade payables,
contract liabilities and accrued trade expenses	-1,433	1		-287	-62
Income taxes paid	-701	-730		-183	-231
Total cash flow from operating activities	1,230	3,056	-1,826	403	1,015	-612