U ti investorday2011-freightforwarding
13
UTi Worldwide 2011 Investor Day Freight Forwarding Eric Kirchner Chief Executive Officer June 23, 2011
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Transcript of U ti investorday2011-freightforwarding
UTi Worldwide 2011 Investor Day
Freight ForwardingEric Kirchner
Chief Executive Officer
June 23, 2011
Outline
• Overview
• Competitive Landscape and Growth
• Current Operating Improvements
2
3
UTi Freight Forwarding Revenue and Net Revenue Growth
Revenue Net Revenue and Yield
717
595
706
10%
15%
20%
25%
30%
35%
0
100
200
300
400
500
600
700
800
FY09 FY10 FY11
NR Yield
3156
2351
3162
0
500
1000
1500
2000
2500
3000
3500
FY09 FY10 FY11
$ in millions$ in millions
Freight Forwarding – Operating Income and Margin
4
104
131 135
71
99
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
20
40
60
80
100
120
140
160
FY07 FY08 FY09 FY10 FY11
Operating Income Operating Margin
Operating Income and Margin
Note: Figures adjusted for non-GAAP items - FY09-FY10 excludes pre-tax goodwill impairment and other charges; FY08 excludespre-tax restructuring charges; FY07 excludes primarily SLi restatement.
$ in millions
Outline
• Overview
• Competitive Landscape and Growth
• Current Operating Improvements
5
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
DHL Kuehne +Nagel
DBSchenker
Panalpina CEVA Expeditors UTi UPS SCS
6
Global Airfreight Forwarding Key Competitor Market Share
Source: Transport Intelligence Global FF 2010 and UTi Worldwide Estimates
Market Share
DHL 8.4%
Kuehne + Nagel 6.0%
DB Schenker 5.1%
Panalpina 4.3%
CEVA 4.0%
Expeditors 3.1%
UTi 1.8%
UPS SCS 1.8%
0%
2%
4%
6%
8%
10%
12%
Kuehne +Nagel
DBSchenker
DHL GlobalForwarding
Panalpina DSV A/S Agility Expeditors UTi
7
Global Ocean Freight Forwarding Key Competitor Market Share
Source: Transport Intelligence Global FF 2010 and UTi Worldwide Estimates
Market Share
Kuehne +Nagel 11.2%
DB Schenker 5.7%
DHL Global Forwarding 5.4%
Panalpina 3.9%
DSV A/S 2.4%
Agility 2.4%
Expeditors 2.3%
UTi 1.5%
Projected Freight Forwarding GlobalMarket Growth – 2011 - 2013
2011-2013
• Outlook» Modest growth with risks
• Macroeconomic Climate
• Fuel
• Geopolitical Risks
• EU Debt
0%
1%
2%
3%
4%
5%
6%
7%
8%
Ocean Freight Air Freight
6-8%
4-5%
Source: Industry Reports and UTi Worldwide Estimates
8
UTi: Airfreight Growth vs. Market
9
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Jan-
09
Feb-
09
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep-
09
Oct
-09
Nov
-09
Dec
-09
Jan-
10
Feb-
10
Mar
-10
Apr
-10
May
-10
Jun-
10
Jul-1
0
Aug
-10
Sep-
10
Oct
-10
Nov
-10
Dec
-10
Jan-
11
Feb-
11
Mar
-11
Apr
-11
% C
hang
e fr
om P
rior Y
ear
Months
Total - % Change in Air Kgs % Variance over PY Total IATA GrowthUTIW Market
Source: IATA – Market Growth
UTi: Ocean Freight Growth vs. Market
10
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Oct
-08
Nov
-08
Dec
-08
Jan-
09
Feb-
09
Mar
-09
Apr
-09
May
-09
Jun-
09
Jul-0
9
Aug
-09
Sep-
09
Oct
-09
Nov
-09
Dec
-09
Jan-
10
Feb-
10
Mar
-10
Apr
-10
May
-10
Jun-
10
Jul-1
0
Aug
-10
Sep-
10
Oct
-10
Nov
-10
Dec
-10
Jan-
11
Feb-
11
Mar
-11
Apr
-11
% C
hang
e fr
om P
rior Y
ear
Months
Total - % Change in TEUs from Prior Year % Variance over PY Drewry
Source: Drewry – Market Growth
UTIW Market
UTi Freight Forwarding Initiatives: Growth Ahead of Market
Initiative Benefit
Invest for Growth Expanding sales force in key growth markets
Small to Medium Size Clients Build stronger base for future global strategic clients
Sales Force AutomationImproved global visibility for team selling and performance management
Marketing Enhancements Increase UTi brand awareness
Capabilities Expansion Increase revenue opportunities by improving service breadth
11
Outline
• Overview
• Competitive Landscape and Growth
• Current Operating Improvements
12
Ongoing Operating Improvements
13
Initiative Past Process Current Process
GatewayUtilization and Carrier Management
Undefined formal gateway utilization process
Formal guidelinesimplemented; lower unit costsand improved reliability
IndirectProcurement
Regional sourcing; no leveraging of indirect costs
Center led procurement; formal purchasing processes resulting in reduced costs
ProductDevelopment
Undefined standard products Global Product Leaders
Global Operating Processes
Regional/local process driven
Documented and streamlined global processes and procedures
