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 2022, the Kuehne+Nagel Group invested a total of CHF 239 million (2021: CHF 197 million) in fixed assets. Investments in properties and buildings amounted to CHF 4 million (2021: CHF 7 million). CHF 235 million (2021: CHF 190 million) were invested in other fixed assets, operating and office equipment. Depreciation of property, plant and equipment for the year 2022 amounted to CHF 192 million (2021: CHF 192 million). Refer to note 26 of the consolidated financial statements for further details.
All capital expenditure in 2022 was financed through operational cash flow.
In 2022, the following major investments were made in properties and buildings:
| Location | CHF million | Centres |
|---|---|---|
| Contern, Luxembourg | 2 | Cross-dock extension, renewal high voltage cabinet and transformator station |
| Geel, Belguim | 1 | Cold storage extension and building upgrades |
| Moehlin, Switzerland | 1 | Construction of a dangerous goods room and racking |
| Total Group | 4 |
The allocation of investments in other fixed assets, operating and office equipment by category is as follows:
| CHF million | 2022 | 2021 |
|---|---|---|
| Operating equipment | 123 | 82 |
| Vehicles | 11 | 17 |
| Leasehold improvements | 44 | 49 |
| IT hardware | 46 | 34 |
| Office furniture and equipment | 11 | 8 |
| Total Group | 235 | 190 |
The allocation by region is as follows:
| CHF million | 2022 | 2021 |
|---|---|---|
| EMEA | 173 | 141 |
| Americas | 35 | 27 |
| Asia-Pacific | 27 | 22 |
| Total Group | 235 | 190 |
The allocation by business unit is as follows:
| CHF million | 2022 | 2021 |
|---|---|---|
| Sea Logistics | 25 | 30 |
| Air Logistics | 29 | 20 |
| Road Logistics | 25 | 30 |
| Contract Logistics | 156 | 110 |
| Total Group | 235 | 190 |
A total of CHF 606 million (2021: CHF 455 million) was invested in right-of-use assets. The allocation of investments in right-of-use assets is as follows:
| CHF million | 2022 | 2021 |
|---|---|---|
| Buildings | 465 | 360 |
| Operating equipment | 101 | 56 |
| Vehicles | 40 | 39 |
| Total Group | 606 | 455 |
The allocation by region is as follows:
| CHF million | 2022 | 2021 |
|---|---|---|
| EMEA | 425 | 305 |
| Americas | 116 | 73 |
| Asia-Pacific | 65 | 77 |
| Total Group | 606 | 455 |
The allocation by business unit is as follows:
| CHF million | 2022 | 2021 |
|---|---|---|
| Sea Logistics | 55 | 43 |
| Air Logistics | 30 | 35 |
| Road Logistics | 67 | 32 |
| Contract Logistics | 454 | 345 |
| Total Group | 606 | 455 |
Depreciation of right-of-use assets amounted to CHF 511 million (2021: CHF 485 million). Refer to note 27 of the consolidated financial statements for further details.
On July 18, 2022, Apex management exercised the put options to sell one third of the remaining 11.6 per cent of their retained shares to the Group. The Group increases its ownership interests by 3.9 per cent and has present access to 67.4 per cent. For further details, refer to note 40 and 45 of the consolidated financial statements.
Kuehne+Nagel signed an agreement on June 3, 2022, to sell its business in Russia, Belarus, Azerbaijan and Kazakhstan. The impact on the consolidated group financial statements is not material. The transaction closed on July 20, 2022.