Kion Group Ag · XETR:KGX
Kion — Investor Day (March 2019)
39 slides from Kion's investor day presentation, Mar 13, 2019
Slide 1: KION GROUP AG Analyst Day 2019
KION GROUP AG Analyst Day 2019 Anke Groth (CFO), Susanna Schneeberger (CDO) – Heusenstamm, 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 2: Presenters
Analyst Day 2019 Presenters Anke Groth Susanna Schneeberger Chief Financial Officer Chief Digital Officer KION Group KION Group 2 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 3: Agenda
Agenda 1. FY 2018 Recap 2. IT&S Highlights 3. SCS Deep-Dive 4. FY 2019 Guidance and Mid-term Outlook 5. Digital & Beyond 3 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 4: FY 2018 Financial Highlights
FY 2018 Financial Highlights KION sees strong finish to the year and fully meets outlook Order intake Revenue Adj. EBIT1 Free cash flow Dividend per share €8.7bn €8.0bn €790m €520m €1.20 +8.5% y-o-y +5.2% y-o-y Margin of 9.9% in +€46m y-o-y +21.2% y-o-y, FY 2018 35% payout ratio2 Outlook for FY 2018
Slide 5: FY 2018 Strategic Highlights
FY 2018 Strategic Highlights Significant progress in implementing KION 2027 strategy − Enhanced digital fleet management − Go-live of KION Digital Campus − Complete Li-Ion truck − New Dematic piece portfolio picking robot − Strategic partnership − Launch of Dematic with EP Equipment iQ InSights soft
Slide 6: FY 2018 Key Financials
FY 2018 Key Financials Good growth momentum and solid margin despite headwinds Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +8.5% +5.2% 10.2% 9.9% 7,979 8,657 7,598 7,996 +1.6% -4.9% 777 790 423 402 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017
Slide 7: Q4 2018 Key Financials
Q4 2018 Key Financials Strong finish to the year Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +13.3% 11.2% 11.3% +0.3% 2,280 2,287 2,225 1,963 +14.8% -20.6% 220 252 199 158 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 − Negative FX tra
Slide 8: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow supported by EBITDA increase FY FY (in €m) 2018 2017 Change Description Reported EBITDA 1,541 1,458 5.7% − EBITDA driven by operating Change in Net Working Capital (NWC) -54 -113 -52.1% performance Taxes paid -193 -136 -41.7% Pension payments -37 -28 -32.5% −
Slide 9: FY 2018 Outlook Comparison
FY 2018 Outlook Comparison Guidance achieved for all KPIs KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 Order intake 8,050 – 8,550 8,657 ✓ 5,950 – 6,150 6,211 ✓ 2,100 – 2,400 2,425 ✓ Revenue 7,700 – 8,20
Slide 10: Agenda
Agenda 1. FY 2018 Recap 2. IT&S Highlights 3. SCS Deep-Dive 4. FY 2019 Guidance and Mid-term Outlook 5. Digital & Beyond 10 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 11: Industrial Trucks and Services
Industrial Trucks and Services A world leader in industrial trucks KION Group is European Key financials Revenue by product No.1 No. 1 and Global No. 2 (in €m) 2018 2017 2016 2015 Order intake 6,211 5,859 5,383 5,146 A well positioned global 5 player with five unique brands Revenue 5,922 5,572 5,203
Slide 12: Industrial Truck Market
Industrial Truck Market Double digit order growth in FY 2018 Order intake unit growth y-o-y (in %) North America China Q1/18 Q2/18 Q3/18 Q4/18 FY18 Western Europe Q1/18 Q2/18 Q3/18 Q4/18 FY18 19.2% 7.6% 2.9% -9.5% +4.0% Q1/18 Q2/18 Q3/18 Q4/18 FY18 15.2% 30.4% 11.9% 3.2% +15.2% 4.7% 19.4% 13.4% 4.0%
Slide 13: Industrial Truck Market
Industrial Truck Market KION ends a successful year with a good Q4 Industrial trucks: Regional development Industrial trucks: Market by region Order intake (in ‘000 units) and growth y-o-y (in %) Order intake FY 2018 (in ‘000 units) FY 2018 Q4 2018 South/ Market KION Market KION Central Other 10% We
Slide 14: Industrial Trucks & Services
Industrial Trucks & Services Strong E- and WH-offering benefits from growth in E-commerce Market segment mix KION segment mix Order intake FY 2018 (in ‘000 units) Order intake FY 2018 (in ‘000 units) Internal Internal Electric forklifts combustion combustion (E-trucks) forklifts Electric forklifts f
Slide 15: Industrial Trucks & Services
Industrial Trucks & Services Good growth momentum and continued supplier bottlenecks Key financials FX translation effect +6.0% +9.2% Order intake FY Q4 5,860 6,211 1,580 1,724 (in €m) 2018 20181 (in €m) Order intake -99 -15 FY 2017 FY 2018 Q4 2017 Q4 2018 Revenue -98 -15 Revenue +6.3% +9.0% Adjuste
Slide 16: Agenda
Agenda 1. FY 2018 Recap 2. IT&S Highlights 3. SCS Deep-Dive 4. FY 2019 Guidance and Mid-term Outlook 5. Digital & Beyond 16 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 17: Supply Chain Solutions
Supply Chain Solutions Leading in material handling automation solutions KION Group is global No.11 Key financials Revenue by product No. 1 following acquisition of Dematic (in €m) 2018 2017 2016 2015 Services Automation systems market Order intake 2,425 2,099 431 49 26% expected to grow at a high R
Slide 18: Supply Chain Solutions Market
Supply Chain Solutions Market Growth drivers and trends remain intact Market growth drivers Growth indicators 2018 E-commerce +9% Global warehouse Automation capex1 +14% Global e-commerce Digitalization growth2 1. Projected capital expenditure growth for warehousing equipment and technology in 2018;
Slide 19: Supply Chain Solutions
Supply Chain Solutions Significant revenue growth and margin expansion in Q4 2018 Key financials FX translation effect +15.5% -19.7% Order intake FY Q4 2,099 2,425 (in €m) 2018 20181 (in €m) 693 556 Order intake -88 +12 FY 2017 FY 2018 Q4 2017 Q4 2018 Revenue -76 +7 Revenue +2.3% +29.4% Adjusted EBI
Slide 20: Supply Chain Solutions Project Timeline
Supply Chain Solutions Project Timeline Both sales and implementation processes can take up to 24 months 1 2 3 Sales & solution Project implementation Services development Project Supply chain Installation engineering − Solution concepting, − Standardized systems, − Global assembly and − Local deliv
Slide 21: Supply Chain Solutions Order Profile
Supply Chain Solutions Order Profile Stability from services activities and inflow of smaller orders SCS order intake by product SCS orders by project size Total order intake 2018 (in €m) Business Solutions order intake 2018 2,425 23% Smaller projects 77% Large projects (<€20m) (>€40m) Medium-sized
Slide 22: Agenda
Agenda 1. FY 2018 Recap 2. IT&S Highlights 3. SCS Deep-Dive 4. FY 2019 Guidance and Mid-term Outlook 5. Digital & Beyond 22 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 23: FY 2019 Outlook
FY 2019 Outlook Investing into strategic fields of action for continued profitable growth KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 Order intake 8,657 8,250 – 8,950 6,211 6,250 – 6,450 2,425 2,000 –
Slide 24: KION 2027
KION 2027 Strategy and mid-term targets aim at profitable growth Mid-term targets Aspiration KION 2027 Growth €10bn revenue by 2022, growing €10bn Capital Profitable Profita- above material handling market efficiency growth bility Profitable growth with adj. EBIT 10-12% margin in the double-digit ra
Slide 25: KION 2027
KION 2027 Mid-term financial targets and strategies €10bn revenue by 2022, growing above the material handling market Revenue Profitable growth with adj. EBIT margin in the double-digit range, Adj. EBIT growing into the range between 10% and 12% EPS growth above EBIT growth EPS Dividend payo
Slide 26: Agenda
Agenda 1. FY 2018 Recap 2. IT&S Highlights 3. SCS Deep-Dive 4. FY 2019 Guidance and Mid-term Outlook 5. Digital & Beyond 26 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 27: Digital & Beyond
Digital & Beyond 27 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 28: We transform our business into the digital world
We transform our business into the digital world. For customers, we develop digital solutions to improve their intralogistics efficiency. Internally we digitalize our processes to improve our performance. 28 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 29: Digital Organization
Digital Organization Bundling all digital activities CDO Organisation Supply Chain Solutions Mobile Automation Software Development Digital Campus IT 29 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 30: Digital Priorities
Digital Priorities From digital processes and digital solutions to new business models Enterprise & Solutions & Customer New Business Operations Services Interaction Models IT Backbone Ways of Working 30 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 31: Digital Customer Offering
Digital Customer Offering How KION digitalizes supply chains Automated systems Automated trucks Fleet data management − Customized integrated Intelligent trucks − Full range of automated soft- and hardware − Fleet data services series trucks intralogistics solutions − Trucks equipped with connect tr
Slide 32: Recent additions to KION's digital solutions
Intralogistics 4.0 Recent additions to KION’s digital solutions Intelligent trucks Fleet data management Automated trucks Automated systems Dynamic mast control Zone intelligence Extended range of AGVs Robotic picking – Reduced mast oscillation – Sensor-based – New additions to – New solution – Incr
Slide 33: Intralogistics 4.0 Fleet data management
Intralogistics 4.0 Fleet data management Zone intelligence KION Cloud for improved Enhanced digital connectivity fleet management 33 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 34: Intralogistics 4.0 Automated trucks and systems
Intralogistics 4.0 Automated trucks and systems Global leader in mobile automation Piece picking robot IQ InSights software 34 KION GROUP AG | Analyst Day 2019 | 13 March 2019 © 2019 KION GROUP AG. All rights reserved.
Slide 35: Dematic PackMyRide: Automated parcel loading
Intralogistics 4.0 Dematic PackMyRide: Automated parcel loading for last mile delivery © 2019 KION GROUP AG. All rights reserved.
Slide 36: KION Digital Campus
KION Digital Campus Main goal for 2019 is to extend from accelerate to innovate and enable Accelerate + Innovate Enable We empower, accelerate and boost We build up knowledge and We bring novel skills, capabilities digital projects of the operating contribute cutting-edge digital and mindset necessa
Slide 37: Financial Calendar
Financial Calendar Date Event 25 April 2019 Quarterly statement for the period ended 31 Mar 2019 (Q1 2019) and analyst call 09 May 2019 Annual General Meeting 25 July 2019 Interim report for the period ended 30 Jun 2019 (Q2 2019) and analyst call 24 October 2019 Quarterly statement for the period en
Slide 38: IR Contacts
IR Contacts Dr Karoline Jung-Senssfelder Phone: +49 (0)69 20110-7450 Senior Vice President Corporate Strategy karoline.jung-senssfelder@kiongroup.com and Investor Relations Antje Kelbert Phone: +49 (0)69 20110-7346 Senior Manager Investor Relations antje.kelbert@kiongroup.com Dana Unger Phone: +49 (
Slide 39: Disclaimer
Disclaimer This document has been prepared by KION GROUP AG (the “Company”) solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral presentation of the slides by representatives of the Company (or any