The Group continues to operate an asset-light business model and invests only into strategically important locations with high demand for state of the art or industry-specific logistics space.
In 2021, the Kuehne+Nagel Group invested a total of CHF 197 million (2020: CHF 177 million) in fixed assets. Investments in properties and buildings amounted to CHF 7 million (2020: CHF 16 million). CHF 190 million (2020: CHF 161 million) were invested in other fixed assets, operating and office equipment.
Depreciation of property, plant and equipment for the year 2021 amounted to CHF 192 million (2020: CHF 185 million). Refer to note 26 of the consolidated financial statements for further details.
All capital expenditure in 2021 was financed through operational cash flow.
In 2021, the following major investments were made in properties and buildings:
| Location | CHF million | Centres |
|---|---|---|
| Gebze, Turkey | 2 | Installation of solar panels |
| Villefranche, France | 1 | Reconstruction of a logistics facility |
| Luxembourg | 1 | Construction of a temperature controlled cross-dock area |
| Others | 3 | |
| Total Group | 7 |
The allocation of investments in other fixed assets, operating and office equipment by category is as follows:
| CHF million | 2021 | 2020 |
|---|---|---|
| Operating equipment | 82 | 69 |
| Vehicles | 17 | 10 |
| Leasehold improvements | 49 | 40 |
| IT hardware | 34 | 33 |
| Office furniture and equipment | 8 | 9 |
| Total Group | 190 | 161 |
The allocation by region is as follows:
| CHF million | 2021 | 2020 |
|---|---|---|
| EMEA | 141 | 118 |
| Americas | 27 | 27 |
| Asia-Pacific | 22 | 16 |
| Total Group | 190 | 161 |
The allocation by business unit is as follows:
| CHF million | 2021 | 2020 |
|---|---|---|
| Sea Logistics | 30 | 13 |
| Air Logistics | 20 | 16 |
| Road Logistics | 30 | 19 |
| Contract Logistics | 110 | 113 |
| Total Group | 190 | 161 |
A total of CHF 455 million (2020: CHF 512 million) was invested in right-of-use assets. The allocation of investments in right-of-use assets is as follows:
| CHF million | 2021 | 2020 |
|---|---|---|
| Buildings | 360 | 418 |
| Operating equipment | 56 | 46 |
| Vehicles | 39 | 48 |
| Total Group | 455 | 512 |
The allocation by region is as follows:
| CHF million | 2021 | 2020 |
|---|---|---|
| EMEA | 305 | 394 |
| Americas | 73 | 68 |
| Asia-Pacific | 77 | 50 |
| Total Group | 455 | 512 |
The allocation by business unit is as follows:
| CHF million | 2021 | 2020 |
|---|---|---|
| Sea Logistics | 43 | 31 |
| Air Logistics | 35 | 24 |
| Road Logistics | 32 | 30 |
| Contract Logistics | 345 | 427 |
| Total Group | 455 | 512 |
Depreciation of right-of-use assets amounted to CHF 485 million (2020: CHF 506 million). Refer to note 27 of the consolidated financial statements for further details.
Effective May 11, 2021 the Group legally acquired 79.3 per cent of the shares of Apex International Corporation (Apex) and obtained present access to a further 9.1 per cent of Apex shares contractually agreed to be transferred over the next three years. Therefore, the Group accounts for an 88.4 per cent ownership stake at acquisition.
Apex is one of the leading Asian freight forwarders, especially in the transpacific and intra-Asia. The group of companies is a renowned specialist for air logistics services, founded in China in 2001 and headquartered in Shanghai and Hong Kong. Apex has operations in 13 countries in various locations in China, Hong Kong, USA, Vietnam, Taiwan, Korea, Singapore, Canada, Mexico, Australia, New Zealand, Netherlands and Germany. The acquisition of Apex is in line with the Group’s strategic growth ambition in Asia. With approximately 1,800 employees, Apex generated a turnover in excess of CHF 2.1 billion in 2020.
Effective January 1, 2021 Kuehne+Nagel sold a major part of its contract logistics portfolio in the United Kingdom to XPO Logistics, Inc. (NYSE: XPO). The scope of the transaction includes the drinks logistics, food services and retail & technology businesses, whereby the pharma & healthcare businesses are retained.
Effective August 12, 2021 Kuehne+Nagel sold a 24.9 per cent equity stake in Apex International Corporation for a cash consideration of CHF 372 million to Partners Group (SWX: PGHN), a leading global private markets firm. The parties also entered into call and put arrangements.
Refer to note 40 of the consolidated financial statements for further details.