ANNUAL REPORT 2010 - Kuehne + Nagel

Dividend
In view of the very good development of business and results as
well as the high cash flow of the Group, the Board of Directors
will propose to the Annual General Meeting of May 10, 2011,
the distribution of a dividend increased by 19.6 per cent to
CHF 2.75 per share (previous year CHF 2.30 per share).
Capital contribution reserves
In addition, the Board of Directors will propose to the Annual
General Meeting to repay capital contribution reserves to its
shareholders amounting to CHF 1.50 per share.
Summary and outlook
Due to its global logistics capabilities and integrated product
portfolio, the Kuehne + Nagel Group was able to quickly benefit
from the revival of world trade. The Group outperformed the
market in all business units, further improving its global competitive
position. Internal processes and costs were optimised,
increasing the productivity of the organisation and putting it in
position to achieve profitability above market average, even in
difficult economic periods. The potential of the global logistics
market and the outstanding growth momentum within the
Kuehne + Nagel Group were the bases for the strategic growth
programme, which the company has planned for the next four
years. It is aimed to double the business by 2014, increasing the
number of containers moved by sea from 2.5 million in 2009 to
more than 5 million in 2014. In airfreight it is intended to
increase the cargo volume to 1.3 million tons. In the same period,
in overland transport it is planned to double the 2009 net
turnover figure and increase the number of European scheduled
connections to 500, while in contract logistics it is aimed to
raise turnover by 50 per cent. These expansion plans are underpinned
by investments in the development of activities in emerg-
ing countries, especially Brazil, China and India. A further core
aim of the strategy is to strengthen sales’ customer orientation
and extend the industry-specific know-how to even better market
Kuehne + Nagel’s sophisticated logistics services.
The economic outlook for the current business year is favourable,
although potential for a setback is still present, including such
factors as the volatility of the U.S. economy, rising commodity
prices and currency risks. The Kuehne + Nagel Group has proven
its capabilities, even under the most difficult economic conditions.
For that reason, the Board of Directors is very confident of
its future development and supports the determined pursuit of
the adopted strategy’s aim of achieving above-average growth.
The Board of Directors thanks all members of the management
and all employees for their committed and valuable contributions
to the Group’s development and the very good results
achieved in 2010. Thanks are also extended to all customers
and partners for their confidence in Kuehne + Nagel and good
business relations the Group enjoyed with them.
Yours sincerely
Report of the Board of Directors
Klaus-Michael Kuehne Karl Gernandt
Chairman of the Executive Vice Chairman of the
Board of Directors Board of Directors
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