Kion Group Ag · XETR:KGX
Kion — FY2015 Earnings Presentation
30 slides from Kion's earnings presentation, Mar 17, 2016
Slide 1: KION GROUP AG FY 2015 Update Call
KION GROUP AG FY 2015 Update Call Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Wiesbaden, 17 March 2016
Slide 2: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 2 KION GROUP AG FY 2015 Update Call | 17 Mar 2016 © 2016 KION GROUP AG. All rights reserved
Slide 3: FY 2015 Milestones
FY 2015 Milestones KION hits new highs and executes Strategy 2020 Another record year Implementation of New company Strong finish to the manufacturing setup structure year New CZ plant with 4 Operating Guidance achieved production start in Units by region across all KPIs Jan 2016 Str
Slide 4: FY 2015 Financial Highlights
FY 2015 Financial Highlights KION outperforms in a soft global market − Guidance FY 2015 achieved for all KPIs − Order intake value rises by 9.3% to €5,216m in FY 2015 (Q4: €1,397m, +8.8% y-o-y), driven by unit growth in Western Europe; healthy order book at €864m − Revenue grows by 9.0% to €5,098m
Slide 5: FY 2015 Capital Market Highlights
FY 2015 Capital Market Highlights Strong share performance and further free float increase KION share price performance 30 Dec 2014 – 30 Dec 2015 Strong share performance Share price Price increase by 45% to closing (in €) price of €46.02 at year-end 50 Outperformance of DAX and KION +45.0% €46.
Slide 6: Strategy 2020
Strategy 2020 Implementation under way, supported by new structure Objective Even stronger focus on customers, innovation and efficiency Strategic Regional growth strategies Aftersales and service levers Innovation Support Multi-brand functions strategy Innovation Manufacturing setup Platform/module
Slide 7: Strategy 2020 – Innovation: Egemin Automation
Strategy 2020 – Innovation KION strengthens systems solutions with Egemin Automation Joining forces in automation and intralogistics Attractive automation market − Market for warehouse solutions and automation systems is attractive − KION to become a leading player in solutions and automation − Auto
Slide 8: Strategy 2020 – Innovation: Retrotech
Strategy 2020 – Innovation Retrotech strengthens US warehouse systems expertise Retrotech at a glance Offering − US systems integrator for automated − Integration of large automated storage and warehouse and distribution solutions retrieval systems (ASRS) and other warehouse − High-profile customer
Slide 9: Strategy 2020 – Margin Upside
Strategy 2020 – Margin Upside Track record in implementing margin drivers Levers Selected achievements 2015 Selected activities 2016 Manufacturing − Building of Stribro plant − Stribro start of production in Jan 2016 setup − Design of efficient plant setup for core − Implementation of new setup in p
Slide 10: Strategy 2020 – Organisational Structure
Strategy 2020 – Organisational Structure New structure drives change during 2016 New company structure Operating Units focus on regional customers Executive Board – Shift from a brand-driven to a CEO C-APAC CTO CFO (Riske) (Quek) (Böhm) (Toepfer) regional setup – Four regional Operating Units with O
Slide 11: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 11 KION GROUP AG FY 2015 Update Call | 17 Mar 2016 © 2016 KION GROUP AG. All rights reserved
Slide 12: Market Development: Weakness in big emerging markets
Market Development Weakness in big emerging markets hampers global growth Global market order intake − Global demand declines by 0.7% in Q4, Order intake Growth y-o-y resulting in growth of 1.0% for FY 2015 (in ʼ000 units) (in %) − Order volume of 272,500 units in Q4 350 20 -0.7% − Developed markets
Slide 13: Market Development: Soft global demand, strong finish in Europe
Market Development Soft global demand with strong finish in Europe Order intake unit growth y-o-y (in %) North America Eastern Europe Q2/15 Q3/15 Q4/15 Q2/15 Q3/15 Q4/15 14.0% 9.7% -1.8% Western Europe -17.3% -8.5% 9.9% Q2/15 Q3/15 Q4/15 8.6% 6.2% 13.0% China Q2/15 Q3/15 Q4/15 South/Central America
Slide 14: Market Development: Western European markets sustain upward trend
Market Development Western European markets sustain upward trend Markets pre- and post-crisis as at 31 Dec 2015 − Solid development Indexed LTM order units (LTM Jan 2007=100) in Germany and UK with a strong finish 140 − France continues UK 120 to recover Germany − Italy and Spain 100 France continue
Slide 15: KION Development: Strong finish in Q4
KION Development KION sees strong finish in Q4 KION global order intake − KION clearly outperforms global market in Q4 Order intake Growth y-o-y − Orders are 9.4% above previous year in Q4 (in ’000 units) (in %) +9.4% vs. market decline of -0.7% 50 20 43.5 − Order volume of 43,500 units in Q4 39.7 4
Slide 16: KION Development: Europe and China
KION Development KION continues good development in Europe and China Regional development Western Europe Order intake unit growth y-o-y (in %) – Market: Strong last quarter FY 2015 Q4 2015 – KION: Overall healthy development Market KION Market KION Eastern Europe Western +11.3% +10.0% +13.0% +10.8%
Slide 17: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 17 KION GROUP AG FY 2015 Update Call | 17 Mar 2016 © 2016 KION GROUP AG. All rights reserved
Slide 18: FY 2015 Key Financials
FY 2015 Key Financials All KPIs above previous year Order intake1 Revenue Adjusted EBIT2 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +9.3% +9.0% 9.5% 9.5% 5,216 5,098 4,771 4,678 +9.0% +24.0% 443 483 178 221 FY FY FY FY FY FY FY FY 2014 2015 2014 2015 2014 2015 2014 2015 − Positive FX
Slide 19: Q4 2015 Key Financials
Q4 2015 Key Financials Strong finish to the year Order intake1 Revenue Adjusted EBIT2 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +8.8% +10.3% 10.3% 10.5% 1,397 1,441 1,284 1,306 +13.2% +29.5% 134 152 77 60 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2014 2015 2014 2015 2014 2015 2014 2015 − Positive FX-
Slide 20: Revenue
Revenue Growth contribution from both new business and services FY: Revenue bridge by product categories Q4: Revenue bridge by product categories (in €m and growth y-o-y in %) (in €m and growth y-o-y in %) +9.0% +10.3% New business Services New business Services +9.7% +8.1% +9.4% +11.6% 5,098 1,441
Slide 21: Adjusted EBIT and EBITDA
Adjusted EBIT and EBITDA Margins reflect implementation costs for Strategy 2020 Adjusted EBIT1 − Gross margin increase driven by (in €m and margin in %) new business growth, supported by product mix, lower commodity 9.5% 8.8% 9.5% 8.7% 10.3% 9.6% 10.5% 9.3% prices and FX-effects 443 483 134 152 − In
Slide 22: Adjusted EBIT to Net Income
Adjusted EBIT to Net Income Net income driven by operating performance FY FY Q4 Q4 (in €m) 2015 2014 Change 2015 2014 Change − Non-recurring items Adjusted EBIT1 483 443 9.0% 152 134 13.2% in Q4 2015 impacted by accruals relating Non-recurring items -33 -57 42.1% -13 -10 -24.9% to efficiency KION ac
Slide 23: Free Cash Flow Statement
Free Cash Flow Statement Strong cash generation driven by operating performance FY FY (in €m) 2015 2014 Change − Free cash flow increases compared to previous EBITDA (excl. FS segment)1 735 632 16.4% year Change of TWC -83 -34 <-100% − Increased trade working capital (TWC) and Taxes paid -85 -51 -66
Slide 24: Financing Structure
Financing Structure Renewed financing on improved terms in Feb 2016 Maturity profile as at 15 Feb 2016 Last pre-IPO bond called on 15 Feb 2016 (in €m) − Early redemption of €450m 6.75% bond 1,150 − Significant reduction of interest expense (ca. €30m savings based on FY 2015 financials) − €26m one-of
Slide 25: Net Debt
Net Debt Significant net debt reduction compared to Dec 2014 Net debt as at 31 Dec 2015 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt significantly reduced by €237m 0.7x1 1.3x2 2.3x2 compared to Dec 2014 768 1,723 − Stable net pension liabili
Slide 26: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 26 KION GROUP AG FY 2015 Update Call | 17 Mar 2016 © 2016 KION GROUP AG. All rights reserved
Slide 27: FY 2015 Outlook Comparison
FY 2015 Outlook Comparison Guidance achieved for all key performance indicators Actuals Actuals (in €m) FY 2014 Guidance FY 2015 FY 2015 Order intake 4,771 Slightly higher order intake 5,216 Revenue 4,678 Slightly higher consolidated revenue 5,098 Adj. EBIT 443 Slight year-on-year rise in adj. E
Slide 28: FY 2016 Outlook
FY 2016 Outlook Margin uplift 2016 driven by Strategy 2020 progress Market KION − KION expects a slower rate of global market Actuals growth this year (in €m) FY 2015 Guidance FY 2016 − 2015 trend likely to continue Order intake 5,216 5,350 – 5,500 − Sustained rise in Europe and North America Revenu
Slide 29: Financial Calendar
Financial Calendar Date Event Publication of 2015 annual report / 17 March 2016 Financial statements press conference and analyst call 27 April 2016 Interim report for the period ended 31 March 2016 (Q1 2016) and analyst call 12 May 2016 Annual General Meeting 27 July 2016 Interim report for the per
Slide 30: 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