Kion Group Ag · XETR:KGX
Kion — Q1 2015 Earnings Presentation
27 slides from Kion's earnings presentation, May 7, 2015
Slide 1: KION Update Call Q1 2015
KION UPDATE CALL Q1 2015 Gordon Riske, CEO Thomas Toepfer, CFO Wiesbaden, 7 May 2015
Slide 2: Agenda
AGENDA 1 Highlights Gordon Riske 2 Market update Gordon Riske 3 Financial update Thomas Toepfer 4 Outlook Gordon Riske 7 May 2015 | Update Call Q1 2015 © 2015 KION GROUP AG. All rights reserved 2
Slide 3: Q1 2015 Financial Highlights
Q1 2015 FINANCIAL HIGHLIGHTS A dynamic start to FY 2015 Order intake rises by 7%, mainly driven by Western Europe and China Overall unit growth above market Healthy order book at €867m Revenues grow by 7% to €1.165bn Adjusted EBIT margin of 8.0% remains at prior-year level Net income inc
Slide 4: Q1 2015 Strategy 2020 Highlights
Q1 2015 STRATEGY 2020 HIGHLIGHTS Implementation track record continues Strategic levers Recent activities Multi-brand KION acquires Egemin’s Handling Automation division strategy & Egemin is a leading supplier of automation solutions for logistics flows innovation KION further expands its automa
Slide 5: KION acquires Handling Automation division of Egemin Group
EGEMIN HANDLING AUTOMATION KION acquires Handling Automation division of Egemin Group Joining forces in automation & intralogistics Market for automation systems is attractive – Logistics automation market is considered to show an increasingly strong demand – Following Strategy 2020, KION targets to
Slide 6: Egemin Solutions overview: Comprehensive automation offering
EGEMIN HANDLING AUTOMATION Solutions overview: Comprehensive automation offering Autom. warehouse systems Automated guided vehicles In-floor chain conveyors – Automated warehouse and – Fully automatic and flexible – Reliable transport and sorting distribution systems transport systems for systems th
Slide 7: Egemin Company background: Established player in automation
EGEMIN HANDLING AUTOMATION Company background: Established player in automation Company overview Solutions offering – KION acquires Handling Automation division of – Focus on solutions for Belgian automation specialist Egemin Group – Automated guided vehicles – Over 60 years of industry expertise, e
Slide 8: Agenda
AGENDA 1 Highlights Gordon Riske 2 Market update Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 7 May 2015 | Update Call Q1 2015 © 2015 KION GROUP AG. All rights reserved 8
Slide 9: Market Development: Solid momentum in the beginning of 2015
MARKET DEVELOPMENT Solid momentum in the beginning of 2015 Global market order intake Global market growth continues in Q1 Order intake Growth y-o-y – Global orders increase by 4% (in ´000 units) (in %) – High order volume of 283,000 units 350 +4.1% 20% – Nine consecutive quarters of global y-o-y gr
Slide 10: Market Development: Mature market tailwinds drive global growth
MARKET DEVELOPMENT Mature market tailwinds drive global growth Order intake unit growth y-o-y (in %) North America Eastern Europe Q3/14 Q4/14 Q1/15 Q3/14 Q4/14 Q1/15 1.2% 18.9% 8.7% Western Europe 5.3% -9.8% -10.4% Q3/14 Q4/14 Q1/15 13.7% 8.3% 16.9% China Q3/14 Q4/14 Q1/15 6.7% 3.7% -12.8% Latin Ame
Slide 11: Western European core markets are in good shape
MARKET DEVELOPMENT Western European core markets are in good shape Markets pre- and post-crisis (status as at 31 Mar 2015) Upward trend continues Indexed LTM order units (LTM Jan. 2007=100) – Improving confidence supports healthy demand 120 Germany – Good momentum in U.K. Germany, UK and France 100
Slide 12: KION Development: Good start into the year with continued growth
KION DEVELOPMENT Good start into the year with continued growth KION global order intake KION grows above global market Order intake Growth y-o-y – Orders by more than 6% above previous year in (in ´000 units) (in %) Q1 vs. market growth of 4% 50 +6.2% 20% – High order level of 41,600 units 41.6 39.
Slide 13: KION benefits from growth in Western Europe and China
KION DEVELOPMENT KION benefits from growth in Western Europe and China Regional development Western Europe Order intake unit growth y-o-y (in %) – Market: Strong growth momentum – KION: Above market growth in forklifts, lagging Market KION above-average dynamics in WH-trucks Q1 2015 Q1 2015 Eastern
Slide 14: Agenda
AGENDA 1 Highlights Gordon Riske 2 Market update Gordon Riske 3 Financial update Thomas Toepfer 4 Outlook Gordon Riske 7 May 2015 | Update Call Q1 2015 © 2015 KION GROUP AG. All rights reserved 14
Slide 15: Key Financials
KEY FINANCIALS Continued momentum in order intake and revenues Order intake1 Revenues Adjusted EBIT2 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +7.0% +7.0% 8.0% 8.0% 1,167 1,248 1,089 1,165 +6.8% 87 93 +50.6% 28 42 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 2014 2015 2014 2015 2014 2015 2014 2015 Pos
Slide 16: Order Intake: New presentation of order intake value implemented
ORDER INTAKE New presentation of order intake value implemented FY 2014 quarterly order intake differences Comments (in €m) – Order intake in value terms is now reported according to a new definition -2% – New definition eliminates deviation between -2% -2% -2% former gross order intake and net sale
Slide 17: Revenues: Growth continues in new business and services
REVENUES Growth continues in new business and services Revenues by product categories Comments (in €m and growth y-o-y in %) – Similar growth contribution from both new business and services +7.0% – New business driven by growth in E- and WH-trucks New business Services +7.7% +6.2% – Service growth
Slide 18: Adjusted EBIT and EBITDA
ADJUSTED EBIT AND EBITDA Stable margin results from implementation costs for Strategy 2020 Adjusted EBIT1 Comments (in €m and margin in %) – Adjusted EBIT and adjusted EBITDA margins 8.0% 8.0% are in line with previous year – Gross margin increase driven by new business 87 93 product mix and lower c
Slide 19: Adjusted EBIT to Net Income
ADJUSTED EBIT TO NET INCOME Net income growth from higher EBIT and improved financing 1 (in €m) Q1 2015 Q1 2014 Change Comments Adjusted EBIT1 93 87 6.8% – Financial result benefits from sustainable Non-recurring items -4 -5 1.5% interest reduction after refinancing in April 2014 KION acquisition it
Slide 20: Free Cash Flow Statement
FREE CASH FLOW STATEMENT Free cash flow slightly above previous year (in €m) Q1 2015 Q1 2014 Change Comments EBITDA (excl. FS segment) 156 148 5.1% – EBITDA excludes FS segment with €22m Change of TWC -102 -90 -13.4% EBITDA, included in leasing CF Taxes paid -18 -16 -17.1% – Trade working capital (T
Slide 21: Financing Structure
FINANCING STRUCTURE Recent positive ratings action following continued deleveraging Maturity profile as at 31 Mar 2015 Positive ratings action in April 2015 (in €m) BB+ with stable outlook 1,045 Ba2 with positive outlook Last pre-IPO bond callable in February 2016 – Remaining bond of €450m at 6.75%
Slide 22: Net Debt
NET DEBT Significant increase in pension liabilities Net debt as at 31 Mar 2015 Net debt development (in €m) – Group net financial debt increases slightly by €36m from Dec 2014, 1.1x1 1.7x2 3.0x2 mainly due to short-term debt 926 2,108 – Net financial leverage increases slightly from Dec 2014 – Indu
Slide 23: Pension Liabilities
PENSION LIABILITIES Further increase driven by falling discount rates Net pension liabilities and discount rates Net pension liabilities mostly driven by German plans (in €m) (in %) – Large UK plans are fully funded, with 1,000 7 926 offsetting pension assets 6 – Smaller plans in other countries 800
Slide 24: Agenda
AGENDA 1 Highlights Gordon Riske 2 Market update Gordon Riske 3 Financial update Thomas Toepfer 4 Outlook Gordon Riske 7 May 2015 | Update Call Q1 2015 © 2015 KION GROUP AG. All rights reserved 24
Slide 25: Outlook FY 2015
OUTLOOK FY 2015 Outlook confirmed based on positive performance in Q1 2015 Market KION Further moderate increase in the Growth underpinned by service in worldwide market volume in 2015 Western Europe and emerging markets – Stabilisation in Western Europe with – Slightly higher order intake and conso
Slide 26: Financial Calendar
FINANCIAL CALENDAR Date Event 7 May 2015 Interim report for the period ended 31 March 2015 (Q1 2015) 12 May 2015 Annual General Meeting 6 August 2015 Interim report for the period ended 30 June 2015 (Q2 2015) 5 November 2015 Interim report for the period ended 30 September 2015 (Q3 2015) Subject to
Slide 27: 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