Panalpina Annual Report 2006

8 Panalpina Annual Report 2006
Report of the Board of Directors
Further increases in revenue, earnings
and profitability
In 2006 Panalpina once more confirmed its position as one of the
world market leaders in forwarding and logistics, with impressive
increases in net forwarding revenue (+11.3%) and net earnings (+52.5%).
A good performance, which investors also found convincing.
Share­price development
The Panalpina share price has performed extremely
well since flotation, demonstrating that investors
find the Group’s strategy and asset­light business
model convincing. But the performance of the
share price in the short term is not a high priority
for the Board of Directors. They regard it as an
expression of confidence, and of appreciation for
the Group’s achievements during the financial
year – but they are sticking to their declared strategy
of pursuing sustained, long­term growth.
Shareholder structure
Contrary to original expectations, the shareholder
structure is now gratifyingly broad and international.
The Ernst Göhner Foundation is still Panalpina’s
major shareholder, with more than 40% of the
equity. As of the reporting date, no other investor
held more than 5%. The company itself holds
0.71% as treasury shares in connection with current
employee share­option programs.
Board of Directors
The Board of Directors has settled in extremely
well following its expansion to seven members in
August 2005. It is a guarantor of continuity and
specialist expertise. Rudolf W. Hug, the new Chairman
Designate, is an international businessman
of proven abilities, with extensive experience in
the working of supervisory boards.
Executive Board
Monika Ribar was appointed CEO in October. An
accomplished manager, she has been with the
company for 15 years – and she has a wealth of
experience to draw on, having been responsible
for the areas of finance, controlling and IT. During
the flotation she played a key role in gaining the
confidence of investors. She was succeeded as CFO
by respected financial specialist Jörg Honegger.
John Klompers (Chief Marketing & Sales Officer) and
Christoph Hess (General Counsel and Corporate
Secretary) joined the Executive Board.
Results
In a market environment that was generally favorable
for a global transport services provider,
the Group succeeded in increasing net forwarding
revenue by 11.3% to CHF 7,735 million and net
earnings by 52.5% to CHF 184 million. The Board
of Directors is particularly satisfied with the continued
significant increase in profitability, clear proof
that Panalpina is consistently pursuing its business
strategy and keeping costs under control.
Once again all reporting regions posted impressive
growth. Asia/Pacific (net forwarding revenue
+15.6%) has the unremitting economic boom in
Asian markets to thank for its continued vigorous
growth. North America (+10.6%) also maintained
its positive development. It exceeded its target of
breaking even and went into profit – proving the
success of its reorganization.
Panalpina continued to maintain its leading global
position in both air and ocean freight in 2006.
Revenues increased by 8.9% in air freight and as
much as 17.8% in ocean freight, where the landmark
volume of one million TEUs was exceeded for
the first time. Both areas increased their market
shares: tonnages were up by 10.5%, volumes by
17.4% – once more significantly ahead of market
growth rates. Supply chain management activities
also posted a nice growth, at 4.7%: an impressive
confirmation of the value placed by customers on
Panalpina’s logistics services.
Dividend increase
The Board of Directors will submit a proposal
for a dividend payment of CHF 3.00 at the General
Meeting of Shareholders on 15 May 2007.
The resulting dividend payout ratio is at the top
30 to 40% band indicated by Panalpina. Dividend
yield, based on year end share price, is 1.81%.
Gerhard Fischer
Chairman of the Board of Directors
www.panalpina.com/bod