Status Report

Investments, Depreciation and Amortisation

In 2018, the Kuehne + Nagel Group invested a total of CHF 315 million (2017: CHF 225 million) in fixed assets. Investments in properties and buildings amounted to CHF 73 million (2017: CHF 48 million), of which the most substantial amount into a new large-scale pharma logistics facility in Moehlin, Switzerland and into the construction of a new office building in Bremen, Germany. CHF 242 million (2017: CHF 177 million) were invested in other fixed assets, operating and office equipment.

All capital expenditure in 2018 was financed through operational cash flow.

In 2018, the following major investments were made in properties and buildings:

Location	CHF million	Centres
Moehlin, Switzerland	19	Construction of a large-scale pharma logistics facility
Bremen, Germany	17	Construction of a new office building
Dubai, UAE	6	Extension of a logistics centre
Derrimut, Australia	4	Extension of a logistics facility
Others	27
Total	73

The allocation of investments in other fixed assets, operating and office equipment by category is as follows:

CHF million	2018	2017
Operating equipment	78	74
Vehicles	27	13
Leasehold improvements	83	46
IT hardware	38	34
Office furniture and equipment	16	10
Total Group	242	177

The allocation by region is as follows:

CHF million	2018	2017
EMEA	147	116
Americas	68	40
Asia-Pacific	27	21
Total Group	242	177

The allocation by business unit is as follows:

CHF million	2018	2017
Seafreight	26	19
Airfreight	22	18
Overland	34	23
Contract Logistics	160	117
Total Group	242	177

Depreciation and amortisation in 2018 amounted to CHF 222 million and was allocated in the income statement as indicated in notes 26 and 27 to the Consolidated Financial Statements.

The Group continued to operate an asset-light business model and invests only into strategically important locations with high demand for state of the art logistics space.