Kuehne + Nagel – Efficiency to the Core

Jersey City, New Jersey – U.S. Headquarters

October 15, 2002

Key Personnel:

Rolf Altorfer, President

Greg Martin, Sr. Vice President – Sales & Marketing

Juerg Bandle, Sr. Vice President – Ocean

Rick Delapaz, Dir. International Airfreight

Wai Wong, Manager, Customer Information Solutions

Kuehne + Nagel promises to get the job done – and delivers.  The plan is very simple:  provide high quality service according to well crafted processes and customize whenever necessary to satisfy demanding customers.  The result is year after year growth and profitability.  The emphasis is on performance not Power Point presentations.

Kuehne + Nagel serves 85% of the world GDP.  It is the world’s largest ocean freight forwarder handling in excess of 900,000 TEU’s annually in its Blue Anchor NVOCC operation.  Its air freight forwarding operations are among the five largest in the world.

Kuehne + Nagel has ISO 9001 certification for all its company locations.  They are all integrated to the same IT operations and financial platforms.  The IT is being upgraded constantly using KN’s own in-house team of programmers.

Kuehne + Nagel officers, managers and staff understand the importance of value added services, and must develop value-adds faster and better than competitors to maintain margins and continue growth.

In line with these practicalities, Kuehne + Nagel Air Freight Service has added special logistics services for aviation, vessel operators, high tech and semi-conductor manufactures.  Kuehne + Nagel’s aviation logistics provides spare parts for major airlines, including larger items such as engines.  High-tech offerings include testing, kitting, pick & pack, merge in transit and localization.

Kuehne + Nagel manages inventories and vendor contracts for ship replacement parts.  For semi-conductor manufacturers, Kuehne + Nagel does logistics management at wafer fabrication construction sites.

With regard to ocean freight, Kuehne + Nagel’s current emphasis is on better control of inland transportation.  Kuehne + Nagel is utilizing Information Technology solutions as it expands its brokerage and transportation management particularly in North America.

Kuehne + Nagel’s strategic acquisitions have been good ones.  The purchase of USCO adds world class value-added warehousing/3PL capabilities.  The strategic relationship with SembCorp gives Kuehne + Nagel excellent intra-country distribution in a dozen Asian countries.  Serving as the lead logistics provider for Nortel is one of the first global LLP arrangements.

Kuehne + Nagel is a solid global transportation operation that is “large enough yet small enough” to nimbly move in the global 3PL market place.  We expect them to be a leader for years to come.

Here are the numbers to back up our opinion.

Kuehne + Nagel Key Data

Return on equity            18.9%

Receivable Terms        37.8 days

36% of employees have over 25 years with Kuehne + Nagel.

49% of employees have over 10 years with Kuehne + Nagel.

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