Basel, June 30, 2011 - In a corporate strategy outlook to 2014, Panalpina has affirmed its role as a leading provider of global Supply Chain Solutions. Air Freight and Ocean Freight remain the core business. They are to be consequently complemented by Supply Chain Services and Value Added Services in Logistics. The Group has clearly committed to sustainable, profitable growth. It is striving to outperform market growth in Air, Ocean and Logistics and achieve an EBITDA-margin of 20%.
At an investor relations meeting in Zurich on June 30, 2011, Panalpina CEO Monika Ribar stated the company's vision: "We deliver reliable supply chain solutions that provide value to our customers – every time." She added: "Our sharpened focus will deliver profitable volume growth and with a set of performance initiatives we will achieve a remarkable productivity increase." For 2014 Panalpina targets an EBITDA-margin of 20% (adj. 14% in 2010) and a net working capital intensity of 2% or below (adj. 2% in 2010).
Focus on end-to-end Supply Chain Solutions
Panalpina’s core service offering, Air and Ocean Freight, is to be consequently complemented by Supply Chain Services (SCS) such as supply chain optimization or order management as well as Value Added Services (VAS) in Logistics such as inbound to manufacturing, postponement or after market services. “We are far more than a freight forwarder,” explained Ribar. “All of these services allow us to offer our customers global and tailored end-to-end supply chain solutions.” Panalpina will increase its in-house logistics capabilities in the coming years, but as Mike Wilson, Global Head of Logistics pointed out, “position logistics around Value Added Services rather than running stand-alone warehouses.” In summary, Panalpina has specified its asset-light model.
Panalpina sees the continuing globalization, the outsourcing trend as well as the increasing market penetration of forwarders as the key market drivers. For 2011 to 2014, the company expects an average market volume growth of 5% for Air Freight, 7% for Ocean Freight and 5% for Logistics. “It is our clear goal to outperform market growth. This will mainly be achieved through organic growth, but acquisitions remain a viable option,” said Marco Gadola, Chief Financial Officer. Gadola stressed the ever increasing importance of customized IT solutions as a prerequisite for continuous improvement of offerings and productivity.
More products and services in Air and Ocean Freight
Panalpina's own-controlled Air Freight network allows tailored responses to market demands and the design of schedules for specific Industry Vertical requirements. “Our own-controlled network is perceived in the market as a strong USP for Panalpina. The continuous development of own-controlled products and services is one of our top priorities,” said Henrik Lund, Global Head of Air Freight. Frank Hercksen, Global Head of Ocean Freight, named order and freight management as key priorities for high growth in Ocean Freight.
Opportunities in Consumer and Retail, Healthcare, Hi-Tech and Oil and Gas
All of Panalpina’s Industry Verticals (IV) will support sustainable growth. Particular focus will be placed on Consumer and Retail, Healthcare, Hi-Tech and Oil and Gas to support growth above market in Air Freight, Ocean Freight and Logistics. As a supplier of choice, Panalpina wants to rank in the top five in all of its Industry Verticals by 2014. Panalpina also sees considerable growth potential in a number of niche markets such as perishables, forestry and secondary recycling materials.
Key trade lanes in Asia
In alignment with the corporate strategy, Panalpina has furthermore defined its key trade lanes moving forward. Both Air Freight and Ocean Freight will focus on trade lanes connecting Asia with old economies as well as with emerging markets, the Intra Asia trade lane being the most important one.
The full presentation held at the Panalpina Investor Day can be downloaded here.
The Panalpina Group
The Panalpina Group is one of the world's leading providers of Supply Chain Solutions, combining intercontinental air and ocean freight with comprehensive supply chain services and value-added services in logistics. Thanks to its in-depth industry know-how and customized IT systems, Panalpina provides globally integrated end-to-end solutions tailored to its customers' supply chain management needs. The Panalpina Group operates a global network with some 500 branches in more than 80 countries. In a further 80 countries, it cooperates closely with partner companies. Panalpina employs approximately 15,000 people worldwide.