Kion Group Ag · XETR:KGX
Kion — Investor Presentation (March 2023)
19 slides from Kion's investor presentation, Mar 7, 2023
Slide 1: Leasing Business Deep Dive Update FY 2022
Leasing Business Deep Dive Update FY 2022 Frankfurt, March 2022
Slide 2: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 2 KION GROUP AG | Leasing Business Deep Dive | Update FY 2022
Slide 3: Integrated Business Model within Industrial Trucks and Services
Integrated Business Model within Industrial Trucks and Services Leasing is an important component growing the business • Technology and innovation • Sales support vehicle with New truck sales Financial services leadership benefit for aftermarket and Around half of new • Tailor-made solutions and ser
Slide 4: Leasing and Rental Strategy
Leasing and Rental Strategy Integrated approach to drive profitable growth • Full support of life cycle management (LTR1, STR2, service, used trucks) • Serve customers’ needs • Strong customer focus to optimized • Full integration into Profit & penetration and retention regional sales structures Res
Slide 5: Lease Accounting – KION's Leasing and Rental Business
Lease Accounting – KION’s Leasing and Rental Business Contract and financing structure overview Rental business (Short-Term) Leasing business (Long-Term) Direct business Indirect business Refinancing KION Customer partner Sale Lease contract Vendor contract Financial Lease KION Customer liability co
Slide 6: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 6 KION GROUP AG | Leasing Business Deep Dive | Update FY 2022
Slide 7: Funding Structure of Leasing & Short-Term Rental Business
Funding Structure of Leasing & Short-Term Rental Business Increasing share of ABS / RCF optimizing funding condition Maturity Matched Interest Instrument Balance Sheet Position in €m1 Funding Matched Funding 1,362 ABS 1,161 (Asset-backed securities) 947 1,499 SALB 1,594 (Sale-and-Leaseback) 1,631 16
Slide 8: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 8 KION GROUP AG | Leasing Business Deep Dive | Update FY 2022
Slide 9: Risk Management Categories
Risk Management Categories All risk categories are actively managed and mitigated • Conservative residual value strategy in place since FY 2001 Residual Value • LTR1 residual values allow for attractive profit margins in our used truck business Risk • KION has never recorded significant aggregated r
Slide 10: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 10 KION GROUP AG | Leasing Business Deep Dive | Update FY 2022
Slide 11: Lease Accounting – Balance Sheet
Lease Accounting – Balance Sheet Increase in (lease) liabilities resulting from growth of leasing business Overview • Many of KION Group’s balance sheet items are related to leasing business, especially: • Leased assets • Rental assets • Lease receivables • Liabilities from lease business • Liabilit
Slide 12: Lease Accounting – Balance Sheet: Direct leasing business drives balance sheet
Lease Accounting – Balance Sheet Direct leasing business drives KION’s balance sheet Leasing and rental balances as at Dec 31, 2022 (2021) Direct vs. indirect leasing as at Dec 31, 2022 (2021) Leasing business Leased assets Leased assets Liabilities from lease €1,367.7 m (€1,391.5 m) (Operating leas
Slide 13: Lease Accounting – Income Statement
Lease Accounting – Income Statement Leasing business contributes 12% to total KION Revenue Leasing (FL) = €726m Leasing (OL) = €560m Rental (OL) = €546m Leasing & Rental business accounts for 16% of total KION Revenue and 25% of total ITS Revenue Leasing only (FL & OL) accounts for 12% of total
Slide 14: Lease Accounting – Income Statement: Finance vs Operating Lease
Lease Accounting – Income Statement Timely recognition of income differs between Finance and Operating Lease FY 2022 LTR1 (FL) LTR1 (OL) STR2 (OL) Finance Lease (FL) vs. Operating Lease (OL) New Rental Rental Business line (In-) direct leasing business classified as a Finance Lease business busine
Slide 15: Lease Accounting – Cash Flow Statement
Lease Accounting – Cash Flow Statement Leasing business is operating cash flow accretive Understanding the cash flow statement KION’s leasing business is presented as operating cash flow 1. Earnings before interest and tax is the basis for the (indirect) calculation of the operating cash flow (OCF)
Slide 16: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 16 KION GROUP AG | Leasing Business Deep Dive | Update FY 2022
Slide 17: Leasing Business Deep Dive Key takeaways
Leasing Business Deep Dive Key takeaways 1. Leasing business is an important component of the integrated ITS business model 2. Well managed risk profile with resilient income streams 3. Optimized refinancing structure supports competitive funding costs 4. Leasing operations are EBIT and operating ca
Slide 18: Disclaimer
Disclaimer This document has been prepared by KION GROUP AG (the “Company”, and together with its consolidated subsidiaries, the "KION Group") solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral p
Slide 19: GRO U P
GRO U P