Panalpina Annual Report 2011

12
Report of the Executive Board
Overall development
EBITDA Operating expenses
in million CHF
2011
2010*
212
62
Panalpina Annual Report 2011
1,265
1,418
* Other operating expenses in 2010 included a charge of CHF 128 million which the
Company recognized to cover all costs arising from the settlement of two legal
claims in the United States and associated compliance consulting costs as well as
from an internal reorganization project.
Regional development
Panalpina assesses segmental operating performance
primarily from a geographical perspective, as the Group’s
operations are predominantly managed by geography.
A useful measure for assessing the operating performance
by region is EBITDA. The segmental EBITDA provided in
the financial accounts developed as follows in the reporting
period:
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declined from CHF 78 million in 2010 to CHF 39 million
in 2011. The main reasons for the decrease are the depreciation
of the euro versus the Swiss franc, a reconditioned
compensation scheme introduced at the beginning of
the reporting year (reflecting compensation on a door-todoor
shipment between the exporting and importing
station), along with a general slowdown of business in
Europe and Africa.
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US dollar, this region recorded a substantial improvement
in EBITDA, from a negative result of CHF 17 million
in 2010 to a gain of CHF 8 million in 2011, helped by the
elimination of certain unprofitable contracts as well as
the acquisition of new businesses with a variety of customers
across different sectors, including oil and gas.
Moreover, this region was also positively impacted by the
above mentioned compensation scheme.
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decreased from CHF 19 million in 2010 to CHF 17 million
in 2011. While the operating result also suffered from an
adverse currency translation effect, this region made various
investments in logistics facilities during the reporting
period in order to appropriately position the Company to
take advantage of future business opportunities.
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CHF 92 million in 2010 to CHF 88 million in 2011, which
was mainly related to an adverse currency translation
effect as well as the already mentioned compensation
scheme.
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to CHF 60 million in 2011. The improvement was supported
by higher royalties from Group companies and an
adjusted renumeration model of centralized functions.
EBITDA per region
2011 2010*
in million CHF
100
80
60
40
20
0
–20
39
78
Europe,
Middle East,
Africa and CIS
8
–17
North
America
*Figures adjusted by non-recurring charges as already mentioned.
Balance sheet
Current assets
17
19
Central
and South
America
88
92
60
18
Asia Pacific Corporate
Panalpina’s cash and cash equivalents amounted to
CHF 573 million on December 31, 2011 and thus
increased by CHF 45 million from the year before, which
can be mainly attributed to the substantial amount of
free cash flow generated during the reporting period.
Trade receivables and unbilled forwarding services
increased by CHF 29 million, from CHF 1,033 million at
the end of 2010 (equivalent to 52 % of total assets) to
CHF 1,062 million at the end of 2011 (equivalent to 50 %
of total assets). The increase in trade receivables was
more than compensated by an increase in trade payables.
In total, the net working capital intensity (defined as net
working capital as a percentage of gross forwarding revenue)
at the end of 2011 was at a record low level of 1.1 %.