Kuehne Nagel Luxembourg Press Conference Eurohub Centre Luxembourg

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KuehneNagel LuxembourgPress Conference ltEurohub
Centregt Luxembourg

• 14th of October 2008

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Agenda

• KuehneNagel Global Logistics Network
• KuehneNagel S.à r.l. Luxembourg

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The Global Logistics Network

• Worldwide network - 850 locations in more than
  100 countries
• Integrated service portfolio more than 53,000
  employees
• Over 7 million m2 warehousing space

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Mission Statement

• The global logistics network is our strongest
  asset. Dedication, integration and innovation
  are at the heart of our business philosophy.
  Focused on our customers needs we provide
  integrated logistics solutions of outstanding
  quality and operational excellence we are the
  extension of your business.

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General Introduction
Kuehne Nagel Today

• 2007 turnover 21billion CHF(15)
• 2007 EBITDA 686 mio. CHF (14)

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Comprehensive Global Logistics Solutions

• Special Services
• Lead Logistics Solutions
• Drinks Logistics
• Project Transports
• Oil Gas
• Emergency Relief
• Hotel Logistics
• Forest Products
• Fairs Exhibitions
• Insurance Brokerage

• Sea Air Logistics
• Seafreight
• Airfreight
• Road Rail Logistics
• Road
• Rail
• Contract Logistics
• Warehousing
• Distribution
• Value added services

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Market Position

• Global No. 1 in Seafreight
• Double-digit growth rates
• Leading the industry with IT-based solutions
• Strong partnerships with preferred carriers
• Global Top 5 in Airfreight
• Well positioned in the top league
• Cargo 2000 Phase II certified (first mover!)
• Strong partnerships with preferred airlines
• Global Top 3 in Contract Logistics
• Global infrastructure for global contract
  logistics coverage
• Dedicated and shared warehousing distribution
  management
• Transportation management solutions
• Top 7 in European Road Rail Logistics
• Focus on network services, LTL FTL business
• Pan-European coverage of 38 countries
• Innovative intermodal solutions

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Customer References
Industrial/ Chemicals
Pharma/ Healthcare
FMCG Fast Moving Consumer Goods
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Benefits of a Partnership with KuehneNagel

• Global network
• Solutions for single and multi sites
• Shared or dedicated operations
• Performance guarantees based on proven standards
• Tailor-made solutions and added value services
• Optimized processes, latest technology and best
  practices
• Comprehensive supply chain analysis capabilities
• Financial stability - willingness and commitment
  to invest on behalf of customers

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Agenda

• KuehneNagel Global Logistics Network
• KuehneNagel S.à r.l. Luxembourg

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Background

• Present in Luxembourg since 1970
• 495 staff at 8 locations
• Head Office in L Contern since 1996
• Biggest national / regional logistics provider
• Multi-lingual workforce gt 18 nationalities
• Our activities Seafreight, Airfreight, Contract
  Logistics, Road Logistics, European Competency
  Center for Lead Logistics

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Geographical Location and Accessibility

• Strategically situated at the
• Heart of Western Europe
• Close to major motorways
• Less than 7 km from
• Cargo Airport Lux-Findel

LUX
300 km 70 mill. consumers
600 km 200 mill. consumers
900 km 400 mill. consumers
Gateway to EU market App. 450 million consumers
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Last Five Year ResultsTurnover in Mio
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Facts and FiguresTotal Manpower Development 2003
- 2008
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Quality Certificates

• Quality
• ISO 9001 and 18001 certificates
• Enviroment
• ISO 14001 certificates
• Safety Health
• OHSAS 18001 certificate
• Airfreight
• Cargo 2000 certificate
• Customs
• C-TPAT certificate
• Pharmaceutical
• GDP (GxP) certificate (LLS)

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Clear Business Trends
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KuehneNagel S.à r.l. Luxembourg

• Lead Logistics Solutions

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Lead Logistics Solutions Strategy Corresponding
to the Trend

• The future success of Kuehne Nagels Supply
  Chain and Lead Logistics Solutions will be based
  on IT and Process Excellence, a strong position
  in the Contract Logistics Market and the global
  Kuehne Nagel Forwarding Network

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Lead Logistics SolutionsWhat we provide as an
LLP - How it Works
Customer Operations
Internal/External Production Operations
Regional Sales Marketing
Customer Supply Chain Management

• Demand Plans
• Demand Forecasts
• Status

• Orders
• Forecast
• Status

• Orders
• Demand Plans
• Demand Forecasts
• Status

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Kuehne Nagel Lead Logistics Solutions Scope of
Lead Logistics Solutions Product Segments
Inbound Supplier Inventory Management
Outbound 4PL Solutions
Service Parts Reverse Aftermarket Management

• Inbound Logistics Supply Management
• Upstream Transportation Mgt
• Solution Outsource
• Virtual Supply Logistics
• Inventory Planning Demand Replenishment

• Supply Chain Design
• Design / Simulation
• Supply Chain Execution
• Planning and Execution
• Settlement
• Business Support
• Supply Chain Monitoring
• Continuous Improvement

• Critical Service Logistics
• Spare Parts Distribution
• Last Mile Execution
• Live Service Technician Updates
• Reverse Logistics
• RMA Mgt
• Cartridge Collection Program
• Waste Mgt (WEEE)

• Supply Chain Technology Solutions
• Software As A Solution - Warehouse/Order/Transp
  ortation Solution Design, Implementation and
  Support

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KuehneNagel S.à r.l. Luxembourg

• Airfreight

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Airfreight European HUB Centre

• lux airport
• 5th largest air cargo hub in Europe
• Home base of Cargolux, Europeans leading ALL
  Freighters Airline
• Offers direct flights from/to all continents

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IDS E2E ShipmentHigh-Tech Network Process Flow

• Inbound Flights into LUX - HUB
• Hand over of shipments into KN Local Network
• Dedicated Team at every Entry Point (Airfreight
  Office)
• Handling of volumes for destination country
• Direct Shipments via LUX
• Dedicated operation Team located at LUX Airport /
  7-24-365
• Hand over of shipments in Lux into KN European
  Distribution Network

Handover
Uplift / Dispatch
Inbound LUX
Regional Cross Dock / MIT
Delivery
Country Cross Dock / MIT
DestinationAirport
Origin (OEM or CFS)
Destination Gateway
Airport-HUB
Consignee
DC
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• Contract Logistics

KuehneNagel S.à r.l. Luxembourg
Contract Logistics
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Contract LogisticsKey Figures

• Facilities
• 8 Warehouse Locations
• Multi-User Warehouse
• Bonded area
• Key Figures
• WMS Visibility
• 185 employees in 2008

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Real Estate StrategyExpansion Strategy
Contern I 30,000 sqm
Contern II 40,000 sqm
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Real Estate StrategyNew Shared Warehouse Contern
II

• 40,000 sqm building
• 72 loading doors (hydraulic levelers)
• Sprinkler system
• Mezzanine floor
• Handling
• Office
• Available Q4/2009

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Lead Logistics Contract Logistics Focus

• Global economy pressure
• Optimization of Customers Supply Chains
• Reduction of logistics costs spent
• Centralization / consolidation Distribution
  Centres
• Reduction on inventories
• Reduction of Lead Time E2E
• Reduction of Ton/km gt Co2

KN Lux Focus
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Competitive Edge Eurohub Luxembourg

• Central European geographical location
• Airport servicing carriers (Cargolux, etc )
• Multi lingual population
• Cross Border/ Regional Employees
• Modern infra structure incl. Intermodal Terminal
• Supporting Administration Institutions
• Tax VAT incentive Fiscal Representation

• Logistic friendly Lux - Government

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Conclusion

• Lux-Government Focus
• High Value Logistics as incremental industry
  segment
• Benefiting parties
• Lux connecting Cargo Airlines
• Airport Handling Partners
• Logistics Industry Luxembourg
• Employment market
• Tax-Income budget
• Image of G. D. Luxembourg
• All parties can benefit

Cooperate
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The Anchor Principles

• Act as an extension of your customers' business.
• Improve, constantly.
• Collaborate.
• Keep your promises.
• Be accountable.
• Control costs.
• Respect others.
• Have fun.