Panalpina reports disappointing full-year results despite progre


Basel, March 6, 2013

Panalpina reports disappointing full-year results despite progress in Ocean
Freight and Logistics

"Our 2012 results are unsatisfactory," said CEO Monika Ribar. "We did not
manage to compensate for the setback in Air Freight. In Ocean Freight and
Logistics we considerably expanded our business despite a slowing market
growth, but it was simply not sufficient. On the cost side we did not react
fast enough."

Gross profit impacted by weak Air Freight and weak European imports

Net forwarding revenue in 2012 increased by 2% to CHF 6,617 million (CHF 6,500
million in 2011). Group gross profit came down slightly by 1% to CHF 1,465
million (CHF 1,477 million in 2011). Solid organic gross profit growth in
Logistics (+8% to CHF 378 million) and Ocean Freight (+5% to CHF 460 million)
was overshadowed by a set-back in Air Freight where gross profit decreased by
9% to CHF 627 million in 2012. Accordingly, the contribution of Air Freight to
Group gross profit decreased in 2012 while the share of Ocean Freight and
Logistics increased: In 2012, Panalpina generated 43% of its gross profit in
Air Freight (47% in 2011), 31% in Ocean Freight (29% in 2011) and 26% in
Logistics (24% in 2011).

The region Americas recorded gross profit growth of 3% to CHF 444 million.
U.S. imports slowed in the fourth quarter of 2012 but were comparatively
strong over the whole year. Latin American imports and exports slowed but
still grew. European imports, particularly from Asia, as well as exports, were
weak throughout the year. The EMEA region recorded a gross profit of CHF 716
million, 2% less than in 2011. In Asia Pacific gross profit decreased by 3% to
CHF 304 million in 2012.

Panalpina Group: Results for the Full Year 2012 and the fourth quarter

(CHF million)                      2012       2011       Q4 2012    Q4 2011
Net forwarding revenue             6,616.6    6,499.6    1,688.0    1,647.9
Gross profit                       1,465.0    1,477.0    358.4      376.7
EBITDA                             36.5       212.1      9.5        48.5
EBIT                               (37.4)     174.2      (32.3)     38.7
Consolidated profit                (70.2)     127.4      (51.2)     28.8
Non-recurring items:
operating expenses                 (84.6)     -          (12.7)     -
impairment of intangible assets    (11.6)     -          (11.6)     -
goodwill impairment                (18.0)     -          (18.0)     -
underlying EBITDA                  121.1      212.1      22.2       48.5
underlying EBIT                    76.8       174.2      10.0       38.7

Full Year Results 2012 - Investor Presentation

Online Annual Report 2012

Air Freight suffered from exposure in Hi-tech and Telecom

With a decrease of more than 2%, the global air freight market shrank for the
second year in a row in 2012. Perishables and fashion goods were the only
commodities showing market volume growth in 2012, whereas the high-tech and
telecoms sectors, where Panalpina has a high exposure, saw the heaviest
declines. Panalpina, being traditionally strong in Europe, also suffered from
the fact that only one Europe-related trade lane, namely Latin America to
Europe, saw market growth. Latin American exports and Intra-Asia were in fact
the only trade lanes where the market grew last year. In 2012, Panalpina
transported 801,000 tons of Air Freight, 6% less than in 2011. The weight and
size per shipment in Air Freight decreased substantially in 2012, particularly
in Hi-tech and Telecom, but stabilized in the last quarter of 2012. As a
result, Hi-tech and Telecom accounted for 31% of Panalpina's Air Freight
tonnage in 2012, down from 36% in 2011. Gross profit per ton decreased by 4%
to CHF 782 compared to CHF 811 in the previous year. Pressure on GP per ton in
the last quarter came mostly from increasing carrier rates and a small number
of high-volume customers.

Ocean Freight gained market shares and recorded highest volumes ever

Global container traffic (market) grew by approximately 3% in 2012. None of
the European import trade lanes grew in 2012 and U.S. exports also decreased.
Significantly more containers were shipped between Asia and Africa (both
ways), Asia and Latin America (both ways), from the Middle East to Asia and
from Europe to Latin America as well as Africa. Panalpina's Ocean Freight
division transported 1,388,000 TEUs (twenty-foot equivalent units) in 2012, 6%
more than in 2011 and a new record for the company. Gross profit per TEU of
Ocean Freight remained practically stable at CHF 332 (-1%). Carriers' freight
rates gradually softened after steep increases in the year's first-half.

Logistics expanded footprint

In Logistics, Panalpina further expanded its warehousing and distribution
activities including Value-Added Services (VAS). VAS is the collective term
for Panalpina's inbound, warehousing, production, distribution and aftermarket
activities. In short, whenever a box is opened or handled, Panalpina takes
action to add value to it. Panalpina's new approach to Logistics has proven
successful as the division expanded its footprint. In 2012, Panalpina
introduced the software RedPrairie as a global standardized Logistics
platform, established four Logistics Competence Centers and opened several new
logistics centers bringing the total warehousing space under management to
more than 1.2 million square meters.

Higher costs and various non-recurring charges

Personnel expenses before non-recurring items increased by 4% to CHF 930
million for the whole year compared to 2011. However, personnel expenses
started to decline in the fourth quarter as the Group's profitability
improvement program showed first effects. The increase in other operating
expenses (before non-recurring items) in 2012 by 11% to CHF 414 million can
mainly be attributed to the expansion of the Logistics business (warehousing
and distribution facilities) and increasing IT costs.

Extraordinary provisions for EU and Swiss antitrust fines (CHF 59.2 million)
had to be made in the first quarter of 2012 and for accrued salaries of
leaving employees in the third and fourth quarter (CHF 12.7 million each).
Together with the goodwill write-off for Grieg Logistics of CHF 29.6 million
in the fourth quarter the total of non-recurring charges in 2012 amounted to
CHF 114.2 million.

Underlying EBITDA of CHF 121 million

Due to the weak Air Freight and higher cost base the underlying EBITDA fell to
CHF 121 million (-43% from CHF 212 million in 2011). The underlying
EBITDA-to-gross profit margin decreased to 8.3%, down from 14.4% in 2011. The
higher cost base and various non-recurring charges led to a Group loss of CHF
70 million in 2012 (consolidated profit of CHF 127 million in 2011).

Proposals to the Annual General Meeting

In light of the healthy net cash position, the Board of Directors is going to
propose an unchanged dividend payment of CHF 2.00 per share to the Annual
General Meeting on May 15, 2013. This is equivalent to an amount of
approximately CHF 47.3 million and a dividend yield (based on 2012 year-end
share price) of 2.2%.


"The market environment will remain difficult and volatile and we are
therefore very cautious regarding forecasts for 2013. We will have to stay
very vigilant so that we can take necessary actions fast," said Monika Ribar.
"We have already introduced a number of important measures aimed at reducing
costs and improving our operating margins. Given our high exposure to cyclical
industries and the trend to lighter shipments in certain product categories,
we are also critically reviewing our customer portfolio in Air Freight. In
Ocean Freight, we will build on the positive development." In 2013, Panalpina
will continue to invest in Logistics to grow this part of the business.


About Panalpina

The Panalpina Group is one of the world's leading providers of supply chain
solutions. The company combines its core products of Air Freight, Ocean
Freight, and Logistics to deliver globally integrated, tailor-made end-to-end
solutions. Drawing on in-depth industry know-how and customized IT systems,
Panalpina manages the needs of its customers' supply chains, no matter how
demanding they might be. The Panalpina Group operates a global network with
some 500 offices in more than 80 countries, and it works with partner
companies in a further 80 countries. Panalpina employs around 15,000 people
worldwide who deliver a comprehensive service to the highest quality standards
- wherever and whenever.

For more details, please contact:

Media Relations            Investor Relations
Sandro Hofer               Jürg Vogt
Tel. +41 61 226 11 66      Tel. +41 61 226 15 44


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