Slide 1: Q4 and FY 2022 Update Call
KION GROUP AG Q4 and FY 2022 Update Call Rob Smith (CEO) Marcus Wassenberg (CFO) Frankfurt, 2 March 2023
Slide 2: New KION Group CFO as of January 2023
New KION Group CFO as of January 2023 Introduction Marcus Wassenberg Chief Financial Officer (CFO) 2 KION GROUP AG | FY 2022 Update Call | 02 March 2023
Slide 3: Agenda
Agenda 1. Summary Q4 and FY 2022 2. Market and Financial Update 3. Outlook 2023 and Beyond 3 KION GROUP AG | FY 2022 Update Call | 02 March 2023
Slide 4: Q4 2022 Key Financial Figures
Q4 2022 Key Financial Figures In line with implied guidance range Order intake Revenue Adj. EBIT1 Free cash flow EPS €2.5bn €2.9bn €82m €256m €0.27 -27% yoy +5% yoy -€153m yoy -75% yoy -46% yoy +1% qoq +7% qoq +€183m qoq +€637m qoq +€0.99 qoq Margin of 2.8% Adj. EBIT in upper half of implied guidanc
Slide 5: FY 2022 Key Financial Figures
FY 2022 Key Financial Figures FY 2022 marked by strong demand, cost increases and supply chain challenges Order intake Revenue Adj. EBIT1 Free cash flow EPS DPS2 €11.7bn €11.1bn €292m -€716m €0.75 €0.19 -6% yoy +8% yoy -65% yoy -€1,259m yoy -83% yoy ~25% payout ratio Margin of 2.6% ~€25m payout Guid
Slide 6: Return to Profitable Growth
Return to Profitable Growth Measures underway to increase agility, resilience and profitability Agile pricing Strengthen supplier network and increase dual sourcing Improve project management processes De-risk contracts Expand service offering 6 KION GROUP AG | FY 2022 Update Call | 02 March 2023
Slide 7: Agenda
Agenda 1. Summary Q4 and FY 2022 2. Market and Financial Update 3. Outlook 2023 and Beyond 7 KION GROUP AG | FY 2022 Update Call | 02 March 2023
Slide 8: Industrial Truck Market and ITS Order Intake
Industrial Truck Market and ITS Order Intake Market normalization continues - KION Group with strong unit order intake in FY 2022 Industrial Truck Market Development of KION ITS segment Region Q1 Q2 Q3 Q4 Regional growth Q4 Q1 Q2 Q3 Q4 FY (Change in units yoy) 2022 2022 2022 1 2022 2 (Change in unit
Slide 9: ITS – Key Financials
ITS – Key Financials Strong shipments support record revenue and further sequential margin improvement 1 1 (in €m) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Change yoy Change qoq FY 2021 FY 2022 Change yoy Order intake (in ‘000 units) 80.8 87.4 86.3 53.5 41.0 -49% -23% 299.4 268.2 -10% Order intake 2,
Slide 10: SCS – Key Financials
SCS – Key Financials Strong contribution from services - adj. EBIT in line with guidance range 1 1 (in €m) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Change yoy Change qoq FY 2021 FY 2022 Change yoy Order intake 1,062 843 1,022 614 882 -17% +44% 4,329 3,362 -22% Of which E-commerce (%)2 38% 16% 21% 1%
Slide 11: KION Group – Key Financials
KION Group – Key Financials Revenue and adj. EBIT at upper end of guidance 1 1 (in €m) Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Change yoy Change qoq FY 2021 FY 2022 Change yoy Order intake 3,493 2,900 3,755 2,517 2,536 -27% +1% 12,482 11,708 -6% Order book 6,658 6,855 7,941 7,697 7,078 +6% -8% 6,658
Slide 12: Cash Flow Statement
Cash Flow Statement FCF rebound supported by improved EBIT and incipient NWC release Free cash flow Q4 2022 Comments (in €m) 2 382 -5 1 103 1 NWC improvement -130 4 256 supported by further reduction 93 -41 -30 186 of semi-finished trucks in ITS 126 and improved milestone 65 payments in SCS EBIT D&A
Slide 13: Net Debt
Net Debt Leverage ratios stabilized sequentially Indebtedness and leverage1 ratios as at 31 December 2022 Comments (in €m) 3 2 2.8x 1 Positive free cash flow in Q4 22 reduced net financial 2.3x 3,419 debt by €186m 2,800 619 2 RCF-relevant leverage ratio stabilized vs Q3 22, leaving 544 sufficient he
Slide 14: Agenda
Agenda 1. Summary Q4 and FY 2022 2. Market and Financial Update 3. Outlook 2023 and Beyond 14 KION GROUP AG | FY 2022 Update Call | 02 March 2023
Slide 15: FY 2023 Outlook
FY 2023 Outlook Substantial improvement in adj. EBIT and FCF with a significantly stronger H2 KION Group Industrial Trucks & Services Supply Chain Solutions .0 FY 22 Results FY 23 Outlook FY 22 Results FY 23 Outlook FY 22 Results FY 23 Outlook Revenue €11,136m ≥11.0bn €7,356m ≥7.8bn €3,807m ≥3.2bn A
Slide 16: Material Handling Market
Material Handling Market Long-term attractive markets after growth pause in 2023 Supply Chain Solutions Market1 Industrial Trucks & Services Market1 Revenue estimate in €bn and CAGR in % Revenue estimate in €bn and CAGR in % +4% ~68 +9% ~61 ~56 ~56 35 ~39 ~39 51 2021 2022e 2023e 2027e 2021 2022e 202
Slide 17: KION 2027 Strategy
KION 2027 Strategy Updated building blocks for profitable growth 2027 Targets Action Fields Multi-branded Go-to-Market Profitability Region-specific growth plans Growth Sustainability Sustainability Resilience Capital Automation & Software & Agility Profitable Growth Efficiency Ambition: Performance
Slide 18: Key Takeaways
Key Takeaways Measures underway to increase agility, resilience and profitability FY 2023 Outlook: Substantial improvement in adj. EBIT and FCF with a significantly stronger H2 2023 Updated KION 2027 Strategy for profitable growth supported by long-term attractive growth markets 18 KION GROUP AG | F
Slide 19: Q & A Session
Q & A Session 19 KION GROUP AG | FY 2022 Update Call | 02 March 2023
Slide 20: Appendix
Appendix
Slide 21: FY 2023 Expectation – Housekeeping Items
FY 2023 Expectation – Housekeeping Items Non-recurring items1 Operating Capex2 … between -€5m to -€15m … between -€450m to -€500m PPA R&D spending3 … around -€93m to -€96m … around 3% of group revenue Net financial expenses … between -€90m to -€120m Dividend policy … 25% to 40% of consolidated net i
Slide 22: FY 2022 Outlook to Actual Results Comparison
FY 2022 Outlook to Actual Results Comparison All outlook metrics clearly reached KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Results Outlook Results Outlook Results Order intake €11,600m to €12,500m €11,708m €8,200m to €8,600m €8,426m €3,400m to €3,900m €3,362m Revenue €10
Slide 23: Key Financials
Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 (in €m) 2022 2022 2022 2022 2022 2021 2021 2022 2022 2022 2022 2022 2021 2021 2022 2022 2022 2022 2022 2021 2021 Order intake 11,708 2,536 2,517 3,755 2,900
Slide 24: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Strongly improved adj. EBIT, positive NRI and low tax rate drive positive net income Q4 Q1 Q2 Q3 Q4 Change Change FY FY Change (in €m) 2021 2022 2022 2022 2022 yoy qoq 2021 2022 yoy Comments on Q4 22 Adj. EBITDA 376 391 368 135 325 -13% >+100% 1,697 1,219 -28% 1 Positiv
Slide 25: Leverage Development and Maturity Profile
Leverage Development and Maturity Profile Leverage ratios stabilized sequentially Leverage development1,2 Maturity profile and free liquidity as at 31 Dec 2022 (in €m) 4.0x 3.2x 1,577 2.8x 2.8x 3 1,500 2.5x 306 2.4x 2.4x 2.3x 2.7x 2.0x 1.9x 1.6x 1.6x 1,000 1.4x 1.4x 700 638 20 0.9x 115 180 1,271 1.4
Slide 26: Industrial Truck Market and ITS Order Intake
Industrial Truck Market and ITS Order Intake Share of electrified products surpassing 90% in Q4 22 Development of KION ITS segment Order intake Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Change yoy Change qoq FY 2020 FY 2021 FY 2022 Change yoy Order intake (in ‘000 units) 80.8 87.4 86.3 53.5 41.0 -49%
Slide 27: Financial Calendar
Financial Calendar Date Event 02 March 2023 Publication of 2022 annual report with press conference analyst call 03 March 2023 KION @ Metzler Roadshow, Frankfurt 10 March 2023 KION @ Stifel Swiss Roadshow, Zurich 23 March 2023 KION @ BofA Global Industrials Conference, London 30 March 2023 KION @ St
Slide 28: 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