Panalpina Company presentation · PANALPINA COMPANY PRESENTATION | 03 MAY 2018 | 2 PANALPINA AT A GLANCE Profit CHF ... India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines,

CORPORATE COMMUNICATIONS | BASEL | 03 MAY 2018

PANALPINA COMPANY PRESENTATION

2PANALPINA COMPANY PRESENTATION | 03 MAY 2018 |

PANALPINA AT A GLANCE

Profit

CHF

57.5 m

Forwarding volumes:

996 thousand tonsin Air Freight,

1,520 thousand TEUin Ocean Freight

CHF

5,533 m net forwarding

revenueCHF

103.3 mEBIT

14,000FTE’s

Global network

with some 500 offices

in 70 countries,

and partner companies

in a further 100 countries

Ocean FreightAir Freight

Logistics and

Manufacturing Energy and Project

Solutions

CORE ACTIVITIES


INVESTING IN FACILITIES, SOLUTIONS, CAPABILITIES AND DIGITAL TRANSFORMATION (I)

Investing in Logistics

Panalpina officially opened the new

logistics manufacturing hub in Dubai in

2017 and built a new facility in

Singapore. The single warehouse

management system is now

implemented in well over 50 locations.

Expanding rail services from China

Increasingly, cargo catches a train in

China and travels more than 9,000 km

to Europe. Panalpina grew transported

volumes and launched a new service

from Shenzhen to Warsaw in 2017.

Carrying out #MajorMoves

The new carrier model Panprojects

Carrier allows Panalpina to oversee

multimodal heavy-lift moves from

fabrication to installation sites under

one single contract that clearly

governs all modes of transport.


INVESTING IN FACILITIES, SOLUTIONS, CAPABILITIES AND DIGITAL TRANSFORMATION (II)

Taking the lead in air freight

Panalpina cautioned customers early

to secure capacity for the expected

strong peak season in 2017, resulting

in guaranteed uplift. The company pre-

procured 100 extra flights to operate

regular charters during peak season.

Building the Perishables Network

In 2017, Panalpina announced it aims

to be the preferred global supplier of

perishables logistics by 2020 and has

since made additional bolt-on

acquisitions in the sector in Kenya, the

Netherlands, Germany and Belgium.

Becoming ever more digital

Panalpina opened its IT Center of

Excellence in Lisbon, successfully

piloted its new, fully automated online

quotation and booking platform and

introduced Validaide, an open online

platform that the company uses to

qualify key suppliers.


PANALPINA’S VISION, MISSION AND VALUES

Leverage our global presence and

competence in Air and Ocean Freight

by collaborating with our customers

to unlock value in their supply chains

and together build smart and efficient

end-to-end logistics solutions

Be the most customer focused global

provider of freight forwarding and

logistics solutions – a trusted,

valued and respected partner

VisionWhat we want

to be known for

MissionWhat we will do to make

our vision come true

ValuesWhat drives our behavior to achieve

the vision and mission

Performance

Integrity

Professionalism


PANALPINA’S STRATEGIC PRIORITIES

ORGANIC

GROWTH

INNOVATIONEXTERNAL

GROWTH

OPERATIONAL

IMPROVEMENT

OUR

STRATEGY

Organic growthIncrease our business with existing

customers, gain new customers,

continue to balance our industry mix and

expand our footprint in selected

geographies

External growthComplete bolt-on acquisitions in areas

that would complement our current

services, give us access to additional

capabilities and competencies or that

would accelerate growth in

underdeveloped geographies or sectors

Operational ImprovementContinuously improve our operations by

further restructuring loss-making

operations, centralizing and offshoring

key processes, optimizing GP margin,

maintaining strict cost control and

optimizing the Panalpina

Charter Network

InnovationExplore disruptive trends within the

technology and supply chain industries,

expand our service portfolio and foster

strategic partnerships that will create

new opportunities for Panalpina, its

partners and its customers


PANALPINA’S CORE ACTIVITIES

Among global top 4

Tailored service levels,

from intermodal sea-air to

temperature-controlled services,

also available door-to-door

Central procurement and

strategic partnerships

with leading airlines

Charter Network

24/7 hub, charter and

emergency services

Among global top 4

Central procurement and

capacity management

Strategic partnership with

leading carriers

NVOCC Pantainer Express Line

Intermodal services

500+ LCL services

Warehousing

Distribution

Overland

Logistics Manufacturing

Services

Return and repair services

3D printing solutions

Value-added logistics services

Advanced forecasting and

inventory planning solutions

(D2ID)

Turnkey project logistics

management

Out-of-gauge and heavy lift

handling and transport

Break bulk and chartering

Project planning and

study consulting

Transport engineering

Oil and gas tailored hub

logistics

Offshore marine services

Rig move and field supply

concepts

AIR FREIGHT OCEAN FREIGHT

LOGISTICS AND

MANUFACTURING

ENERGY AND PROJECT

SOLUTIONS

CORE COMPETENCIES

Air and Ocean Freight forwarding are the foundations

of our business to support the needs of all our customers

DIFFERENTIATOR

Extended competence to augment

our end-to-end offering for

customers

SPECIALTY

Specialty expertise for the energy

and project sector


24/7hub, charter and

emergency services

53 %OF THE NET

FORWARDING

REVENUE

Is generated by

Air Freight

Scheduled

Consolidations

NETWORK, CAPACITY AND SERVICES

PANALPINA Charter Network

Global coverage

Serving all needs

e-fulfillment

CROSS BORDER

E-COMMERCE

SOLUTION

12GLOBAL STRATEGIC

PARTNER AIRLINES

BESTDATA QUALITYAward by Shipper’s Council

Top 4AIR FREIGHT FORWARDER

AIR FREIGHT AT A GLANCE


500+WEEKLY

SERVICES IN LCL

37 %OF THE NET

FORWARDING

REVENUE

Is generated by

Ocean Freight

REEFERTEMPERATURE CONTROL

PRODUCT FOCUS ON

HEALTHCARE AND PERISHABLES

Supply Chain SolutionsTailor-made solution to proactively

manage customers’ supply chains

Sailing Schedule

Up-to-date network

visibility for LCL

shipments

1 NVOCC

PANTAINER EXPRESS

LINENo 4 Global Player

427MILLION

CHF GP

Equals a share

of 30%

StableVOLUME GROWTH

In Ocean Freight

1,520,500 TEU

OCEAN FREIGHT AT A GLANCE


LOGISTICS AND MANUFACTURING AT A GLANCE

265Warehouse facilities

world-wide with

2.19 million m2

61 bronze

9 silver

2 gold

PANALPINA SITES

LOGEX AWARDS

Panalpina Logistics and Manufacturing Research Center at Cardiff University

In light of the future of digital manufacturing

LOGISTICS MANUFACTURING

SERVICES offered in 4 regions

E-Commerce

SCALABLE, FLEXIBLE,

NEWEST TECHNOLOGY

Advanced forecasting and inventory planning solutions

(D2ID)

1731BEST

PRACTICES

JDA Global Footprint

67SITES IN

34 COUNTRIES


ENERGY PROJECT SOLUTIONS AT A GLANCE

24/7Coverage

Project

Logistics

Management

Established QHSE practicesDeveloping Industry best practices in over

160 countries of operation

Established track

record as energy

logistic services

provider for over

60 years

End To End

Supply Chain visible through Interactive Dashboard

Marine

Chartering Specialized

Competence

Centers

Panprojects

Carrier: multi-

modal solution

Transport

EngineeringOn 6 continents

Houston

Aberdeen

Rotterdam

Dubai

Singapore


FOCUS ON CUSTOMER NEEDS

Industry-leading expertise and tailor-made, customer-specific solutions in

AUTOMOTIVE FASHIONCHEMICALSCONSUMER AND

RETAIL

HEALTHCARE HI-TECHMANUFACTURING TELECOMPERISHABLES

ENERGY

GOVERNMENT, AID

AND RELIEF

AEROSPACE


HOW PANALPINA ADDS VALUE

Provide end-to-end transportation and logistics

services to ensure goods arrive at the right time

and at the right place

Optimize supply chains for our customers to increase

speed and efficiency, and reduce inventory and

environmental impact

Provide sophisticated supply chain analytics

to enable continuous improvement

Help our customers to respond quickly to market

demand

Enable a circular economy by managing return of

goods, diagnostics and repairs

Safeguard customer assets during transportation

Ensure visibility of cargoes throughout their journey


END-TO-END SOLUTIONS

Lead Logistics Solutions

Holistic supply chain solution over

all modes and supply chain partners

Sourcing, transport management

and freight audit services

Business analytics and

continuous improvement

Logistics Solutions

LMS

(Logistics Manufacturing Services)

Value-added logistics services

Advanced forecasting and inventory

planning solutions (D2ID)

Supply Chain Optimization,

Network Optimization

Strategic and tactical

supply chain analysis

Identification of improvement

potentials and quick wins

Cost savings, service and

process improvements

Freight and Order

Management Solutions

Carrier/freight management

Purchase order management

Advanced origin logistics services

Vendor management

Buyers consolidation

Supply

Chain

Solutions

Managed

Solutions

Logistics

Solutions

Supply

Chain

Control

Center


PANALPINA’S GLOBAL NETWORK

70 Countries

100Countries

with partner

presence

500+Offices worldwide

14,000Full-time equivalents worldwide

Headquarters Countries with Panalpina offices Countries with partner presence Note: World map based on the official UN published maps


GROUP STRUCTURE

AMERICAS EUROPE

MIDDLE EAST,

AFRICA AND CIS ASIA PACIFIC

Argentina, Brazil, Canada, Chile,

Colombia, Costa Rica, Dominican

Republic, Ecuador, El Salvador, Mexico,

Panama, Peru, Uruguay, USA,

Venezuela

Austria, Belgium, Croatia, Czech

Republic, Denmark, Finland, France,

Germany, Hungary, Ireland, Italy,

Luxembourg, Netherlands, Norway,

Poland, Portugal, Romania, Slovakia,

Spain, Sweden, Switzerland, United

Kingdom

Angola, Azerbaijan, Bahrain, Egypt,

Gabon, Georgia, Iraq, Kazakhstan,

Kenya, Kuwait, Morocco, Qatar, Russia,

Saudi Arabia, Turkey, Ukraine, United

Arab Emirates

Australia, Cambodia, Greater China,

India, Indonesia, Japan, Malaysia,

Myanmar, New Zealand, Philippines,

Singapore, South Korea, Taiwan,

Thailand, Vietnam


A BRAND WITH A RICH HISTORY

The Panalpina logo shows a man using

the wind to dynamically circumscribe the

globe. Although physically impossible,

it symbolizes the idea that individual effort,

together with the spirit of adventure and

good fortune, can form the basis for

success in a global company.

The logo is based on a 15th century

ink drawing by the German master

Peter Vischer.


MILESTONES IN THE COMPANY’S HISTORY

Founding

of Hans

im Obersteg

(HIOC)

Acquisition

of Hans im

Obersteg

& CIE

SSG renamed

Schweizerische

Reederei AG

(SRAG)

1895

1919

1935

1938

2015

Founding of Schweizer

Schleppschiffahrtsgenossen-

schaft (SSG)

Expansion of the

global network

with branches in

North America,

Latin America,

Africa, Asia

and Australia

1940 – 1950

Merger of Industrial

Projects and Oil and

Gas specialists

Consolidation

into Alpina

Internationale

Transporte AG

Renamed

Panalpina

World

Transport

Ltd (PWTN)

Ernst Göhner

Stiftung

acquires

40% of PWTN

Founding

of Air Sea

Broker AG

Launch of air freight

service Dixie Jet

Acquisition

of ChartAir

Europe

Successful

IPO at SIX

Swiss

Exchange

Panalpina

withdraws

from Nigeria

Acquisition of Grieg

Logistics

Two 747-8F

enter service

in Panalpina’s

Charter Network

1954

1960

1969

1973

1989

2012

2011

2007

2005

1996

2014

1990 – 2000

Network

extension in

Far East, Europe,

Africa, Oceania

and India

Acquisition

in Kenya:

Airflo

Acquisition

in Egypt:

Afifi

New offices in

Myanmar, Morocco

and Kenya

New CEO takes over

2016

New office in

Cambodia

2017

Acquisition

in Kenya:

Air Connection

Acquisition in

Denmark:

Carelog

Acquisitions

in the Netherlands

(Interfresh),

Germany (parts of

Cool Chain Group),

and Belgium

(Adelantex)


ORGANIZATION AS OF MAY 3, 2018

Board of Directors

Corporate Audit

Emilio Rubio

Air Freight

Lucas Kuehner

Ocean Freight

Daryl Ridgway

Logistics and Manufacturing

Mike Wilson

Energy and Project Solutions

Michel Dubois

Digital Innovation

Luca Graf

Compliance

Markus Heyer

Chief

Financial Officer

Robert Erni

Chief

Legal Officer

Christoph Hess

Chief

Commercial Officer

Karl Weyeneth

Chief

HR Officer

Karsten Breum

Chief

Information Officer

Ralf Morawietz

President and Chief Executive Officer

Stefan Karlen

Executive Board (EB) + Executive Committee (ExCom)

Europe

Stefan Karlen (a.i.)

Americas

Frank Hercksen

Asia Pacific

Sven Raudszus

Middle East/Africa/CIS

Rafic Mecattaf

Corporate Communications

and Marketing

Sandro Hofer (a.i.)


MARKET SHARE TOP 4

(% of total market in 2016)

DB Schenker

Kühne + Nagel

DHL

Panalpina

DB Schenker

Kühne + Nagel

DHL

Panalpina

AIR

FREIGHT

OCEAN

FREIGHT

4.3% 3.0%1.1%6.0%

2.3%9.6% 1.5%5.4%

Sources: Armstrong & Associates, Seabury, Transport Intelligence


NET FORWARDING REVENUE 2017

Net Forwarding Revenue (CHF 5,533 million) by region and product

REGION

42%

Europe

10%

Logistics

23%

Asia Pacific

30%

Americas

5%

Middle East, Africa, CIS

37%

Ocean Freight

53%

Air Freight

PRODUCT


NET FORWARDING REVENUE OVER THE LAST FIVE YEARS

In million CHF

6'758 6'707

5'855

5'196

5'533

2013 2014 2015 2016 2017


GROSS PROFIT 2017

Gross profit (CHF 1,398 million) by region and product

REGION

PRODUCT

38%

Europe

24%

Logistics

25%

Asia Pacific

31%

Americas

6%


30%

Ocean Freight

46%

Air Freight


GROSS PROFIT OVER THE LAST FIVE YEARS

1'561 1'586

1'4741'425 1'398

2013 2014 2015 2016 2017

In million CHF


EBIT 2017

EBIT (CHF 103.3) by region and product

REGION

PRODUCT

n/a*

Europe

8%

Logistics

68%

Asia Pacific

31%

Americas

2%


n/a*

Ocean FreightAir Freight

107%

* Europe reported an EBIT loss of CHF 1.2 million for 2017; Ocean Freight reported an EBIT loss of CHF 15.1 million for 2017 – shown percentage figures therefore add up to more than 100%


EBIT OVER THE LAST FIVE YEARS

'48

'117 '117

'110

'103

2013 2014 2015 2016 2017

In million CHF

* 2016: Adjusted EBIT


TRANSPORTED VOLUMES OVER THE LAST FIVE YEARS

Air Freight (thousand tons) Ocean Freight (thousand TEU)

1'495

1'607

1'594

1'488

1'520

2013 2014 2015 2016 2017

'825

'858

'836'921

'996

2013 2014 2015 2016 2017


QUALITY, HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT

Global Policy Statement – Our Commitment

Management

commitment starts with

our QHSE policy and is

the basis of our

management system

The management of

Panalpina forges and

enacts all the objectives

of our Integrated

management system

All necessary

responsibilities, authori-

ties and resources to

implement, uphold and

continuously improve

the system are

delegated to our fully

trained QHSE

responsible staff

members


QUALITY, HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT

Panalpina was the first in the industry to achieve global certification for

Quality Management

Customers are at the heart

of Panalpina’s business

Environmental Management

We are committed to minimize

our environmental impact

Health and Safety

Panalpina is devoted

to the highest standards

Health

and Safety

OHSAS 18001

Environmental

Management

ISO 14001

Quality

Management

ISO 9001*

IMS

* Panalpina was globally certified to the new standard ISO 9001:2015 beginning of 2018


COMMITTED TO HEALTH AND SAFETY

Health and safety performance

2015 2016 2017

First-aid incidents 54 69 47

Medical treatment incidents 35 29 28

Restricted work cases 9 5 8

Near misses 706 574 548

Lost-time incidents 53 41 46

Reportable Incident Cases 19 22 22

Lost Work Days 843 798 1,009

Fatalities 0 0 0

Subcontractor HSE violations 172 148 118

Inspections 2,892 2,698 2,488

11%reduction in total number of

injuries to staff

2,488health and safety

inspections in 2017

2,000employees took online

safety courses in 2017


COMMITTED TO SUSTAINABLE ACTION INTERNALLY

Improvements from 2013 to 2017 19.6% reduction in CO2 emissions since 2013

Reducing the environmental impact of Panalpina’s activities

36% less water used

35% less paper used

Management

(B)

second-highest score level

from the Carbon Disclosure

Project reporting


COMMITTED TO SUSTAINABLE ACTION EXTERNALLY

EcoTransIT platform

Customers receive reports on

greenhouse gas emissions associated

with their shipments

Science-based targets

Panalpina was the first logistics

provider globally with officially

approved science-based targets for

the global reduction of GHG

emissions.

Supplier management

Suppliers are chosen based on their

fuel efficiency and commitment to

sustainable performance

Helping our customers and suppliers reduce their environmental impacts


COMMITTED TO OUR COMMUNITIES

2017 Global Sustainable Action

Employees worldwide took part in close to 400 activities for

Global Sustainable Action Week.

2017 UNICEF relief flight to SUDAN

In its fifth yearly flight in support of UNICEF, Panalpina

donated a charter flight to UNICEF that brought 80 tons of

relief supplies to South Sudan.


COMPLIANCE – CONCEPT, PROCESS, CONTROLLING

Panalpina – striving to be the most compliant company in the industry

Click to open

Code of Conduct

Anti-corruption policies

Anti-bribery

Facilitation payments

Gifts, hospitality and entertainment

Political contributions

Third parties

Free competition

Trade regulations

“Whistle blowing” procedure

http://kweb.panalpina.com/www/global/en/home/supporting_functions/corporate_compliance/code_of_conduct.html

http://kweb.panalpina.com/www/global/en/home/supporting_functions/corporate_compliance/code_of_conduct.html


SUCCESS FACTORS FOR DRIVING GROWTH

In-depth

know-how in key

industry verticals

Quality and

procurement

Process-optimized

information

technology

Compliance and

corporate culture

Highly qualified

and committed

workforce

Extensive

global network

Documents

Panalpina Company presentation · PANALPINA COMPANY PRESENTATION | 03 MAY 2018 | 2 PANALPINA AT A GLANCE Profit CHF ... India, Indonesia, Japan, Malaysia, Myanmar, New Zealand, Philippines,