Slide 1: KION Update Call Q2 2014
KION UPDATE CALL Q2 2014 Gordon Riske, CEO Thomas Toepfer, CFO Wiesbaden, 6 August 2014
Slide 2: Agenda
AGENDA 1 Highlights H1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 6 August 2014 | Q2 2014 Update Call 2
Slide 3: H1 2014: Financial Highlights
H1 2014: FINANCIAL HIGHLIGHTS H1 performance confirms guidance for a successful FY2014 Order intake continues to increase Revenue stable with book-to-bill >1 – Q2: €1,228m up 11% on previous year – Q2: €1,144m at same high level as prior year – H1: €2,424m up 8% compared to H1 2013 – H1: €2,233m at
Slide 4: H1 2014: Operational Highlights
H1 2014: OPERATIONAL HIGHLIGHTS Recovery, investments and innovation underpin leading position Above market – Continued recovery in Western Europe with KION growing above the market growth in Q2 – Strong growth in China and Eastern Europe New investments – KION launches investment program to optimiz
Slide 5: H1 2014: KION Share Highlights
H1 2014: KION SHARE HIGHLIGHTS Free float increases significantly to almost 40% Shareholder structure as at 30 June 2014 Recent changes Goldman Sachs sold down 7.5m shares on 10 June 2014 Free float1 Goldman Sachs and KKR are 39.6% now prohibited from selling their shares until 10 September 2014
Slide 6: Market Development: Global market reaches all time high
MARKET DEVELOPMENT Global market reaches all time high Global market order intake and growth Global market is keeping the momentum Order intake Growth y-o-y – Global orders increase by 9% in Q2 to order (in ‘000 units) (in %) volume of 284,400 units 350 +8.9% 20% – Western Europe & China are biggest
Slide 7: Market Development: Europe and China drive global growth
MARKET DEVELOPMENT Europe and China drive global growth Order intake unit growth y-o-y in % North America Eastern Europe Q4/13 Q1/14 Q2/14 Q4/13 Q1/14 Q2/14 10.3% 14.2% 2.3% Western Europe 13.9% -6.9% 9.5% Q4/13 Q1/14 Q2/14 10.1% 10.3% 14.0% China Q4/13 Q1/14 Q2/14 23.4% 17.7% 12.6% South/Central Am
Slide 8: Market Development – Western Europe
MARKET DEVELOPMENT – WESTERN EUROPE Recovery continues across key markets Country markets pre- and post-crisis (status as at 30 June 2014) Sustained upward momentum Indexed LTM order intake units (year end 2006=100) Recovery in core markets progressing 120 Sentiment and early indicators Germany
Slide 9: KION Performance: Order activity improves visibly in Q2
KION PERFORMANCE Order activity improves visibly in Q2 KION global order intake Orders 14% above previous year in Q2 (in ‘000 units) – High level of 40.8 thousand units in Q2 – Benefitting from strong European performance 50 +13.9% – Continued gains in WH- and E-trucks 40.8 – Overall growth above ma
Slide 10: Regional Perspective
REGIONAL PERSPECTIVE KION outpaces market growth in Europe and China Regional development Western Europe Order intake unit growth y-o-y in % – Market: continued recovery driven by WH- and especially E-trucks H1 2014 Q2 2014 – KION: trending above market, regaining share Market KION Market KION Easte
Slide 11: European Investment Program
EUROPEAN INVESTMENT PROGRAM KION paves the way for further growth in Europe KION plant locations Increase efficiency in core plants Plan to invest €83m by 2021 into core plants in Aschaffenburg (LMH) and Hamburg (STILL) Focus is on increasing cost efficiency in STILL production processes and int
Slide 12: Trade Fairs
TRADE FAIRS KION achieves strong customer attention at Q2 trade fairs LMH – World of Material Handling STILL – CeMAT Three-week LMH-specific event with partners CeMAT Hannover is the largest intralogistics and suppliers in May 2014 trade show worldwide New live and interactive trade fair conce
Slide 13: Innovations – Products
INNOVATIONS – PRODUCTS New products LMH STILL Linde Safety Pilot as a unique Reach truck with Active Load electronic driver assistance Stabilization and unique system ergonomic concept (FMX) First pallet trucks with lithium-ion Re-engineered electric forklift battery (T16-T18) truck with higher spee
Slide 14: Innovations – Solutions
INNOVATIONS – SOLUTIONS Innovations beyond the truck LMH – Example: Fleet management STILL – Example: Truck automation – LMH launches new state-of-the-art generation of – STILL’s automation technology iGoEasy wins fleet management solutions International Forklift Truck of the Year Award – Customers
Slide 15: Agenda
AGENDA 1 Highlights H1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 6 August 2014 | Q2 2014 Update Call 15
Slide 16: Key Financials H1 2014
KEY FINANCIALS H1 2014 Order intake growth reflects continued recovery Adjusted EBIT1 and Order intake Revenues margin (in %) Net income (in €m) +7.7% 9.0% 8.8% 0.0% FX effect: €39m FX effect: €36m 2,424 2,250 2,234 2,233 -1.8% 200 197 -13.8% 70 61 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1
Slide 17: Key Financials Q2 2014
KEY FINANCIALS Q2 2014 Adjusted EBIT margin improves to 9.6% Adjusted EBIT1 and Order intake Revenues margin (in %) Net income (in €m) +11.1% -0.4% 9.4% 9.6% FX effect: €20m FX effect: €17m 1,228 1,105 1,149 1,144 +1.7% 108 109 -21.4% 42 33 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2 2013 Q2
Slide 18: Order Intake
ORDER INTAKE Order intake growth driven by Western Europe and China KION global order intake1 Comments (in €m) – Continued strong order +11.1% intake growth in Q2, 1,205 1,193 1,196 1,228 mainly in Western Europe 1,166 1,145 1,105 and China 1,052 1,046 – Order backlog increases by 20% to €835m compa
Slide 19: Revenues
REVENUES Positive development in service revenues H1 2014: Revenue by product categories Q2 2014: Revenue by product categories (in €m) (in €m) 0.0% -0.4% New business Services New business Services -6.7% +8.8% -7.7% +9.6% 2,234 2,233 1,149 1,144 27 19 85 19 51 11 38 17 H1 2013 New After Rental Used
Slide 20: Adjusted EBIT and EBITDA
ADJUSTED EBIT AND EBITDA Adjusted EBIT in Q2 increases based on improved gross margin Adjusted EBIT1 and margin (in %) Comments (in €m) – Improved gross margin in Q2 9.0% 8.8% 9.4% 9.6% from increase in both new business and services 200 197 108 – Increase in fixed costs driven by 109 wage inflation
Slide 21: Adjusted EBIT to Net Income
ADJUSTED EBIT TO NET INCOME Improved interest level is offset by higher tax expenses 1 (in €m) Q2 2014 Q2 2013 Change H1 2014 H1 2013 Change Comments Adjusted EBIT1 109 108 1.7% 197 200 -1.8% – Sustainable interest reduction Non-recurring items -5 -8 41.7% -9 -7 -32.0% after IPO KION acquisition ite
Slide 22: Free Cash Flow
FREE CASH FLOW Cash flow from operations shows strong improvement (in €m) H1 2014 H1 2013 Change Comments EBITDA (excl. FS segment) 310 313 -1.1% – Trade working capital (TWC) kept at tight levels Change of TWC -96 -98 2.1% – Expected gradual increase in operating Taxes paid -25 -31 18.4% capex Pens
Slide 23: Net Debt
NET DEBT Leverage remains at comparable level to previous quarter Net debt and leverage as at 30 June 2014 Net debt development (in €m) – Group net financial debt increases with seasonality 1.45x1 3.06x2 – Increase in rental fleet funding and FS 628 2,023 net financial debt – Increase in pension lia
Slide 24: Financing Update
FINANCING UPDATE Bonds were called and ratings upgraded in April 2014 Maturity profile after bond calls Refinancing of pre-IPO bonds on 15 April (in €m) – Call of two pre-IPO bonds €325m 2018 bond with 7.875% 1,045 €200m 2020 bond with Euribor +4.50% – Refinancing with long-term, pre-payable ban
Slide 25: Agenda
AGENDA 1 Highlights H1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 6 August 2014 | Q2 2014 Update Call 25
Slide 26: Outlook Confirmed
OUTLOOK CONFIRMED Profitable growth in 2014 Market KION Global market volumes are expected to Unlock the full potential of the Western moderately increase European and emerging markets in 2014 – Further stabilisation in Europe – Slight increase in order intake and – A sustained uptrend in North Amer
Slide 27: KION Investment Highlights
KION INVESTMENT HIGHLIGHTS 1 Attractive market with growth profile above GDP 2 Global leader – strong home base and well positioned in growth markets 3 Technology leadership drives premium positioning and customer value 4 Robust integrated business model with high contribution from services 5 Profit
Slide 28: We Keep the World Moving
WE KEEP THE WORLD MOVING 6 August 2014 | Q2 2014 Update Call 28
Slide 29: Annex
ANNEX 6 August 2014 | Q2 2014 Update Call 29
Slide 30: Key Financial Figures by Quarter
KEY FINANCIAL FIGURES BY QUARTER Order intake1 Revenue1 (in €m) (in €m) 1,205 1,193 1,228 1,252 1,178 1,166 1,105 1,052 1,046 1,145 1,196 1,105 1,122 1,149 1,089 1,082 1,085 1,089 1,149 1,144 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 2012 2013 2012 2013 2012 2013 2013 2014 2013 201
Slide 31: IR Services
IR SERVICES Financial Calendar Date Event 5 November 2014 Interim report for the period ended 30 September 2014 (Q3 2014) Financial statements press conference 19 March 2015 Publication of 2014 annual report (FY 2014) 7 May 2015 Interim report for the period ended 31 March 2015 (Q1 2015) 12 May 2015
Slide 32: Disclaimer
DISCLAIMER This document has been prepared by KION GROUP AG (the “Company”) solely for informational purposes. For the purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on behalf of t