Slide 1: KION Update Call Q1 2014
KION UPDATE CALL Q1 2014 Gordon Riske, CEO Thomas Toepfer, CFO Frankfurt, 8 May 2014
Slide 2: Agenda
AGENDA 1 Highlights Q1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 8 May 2014 | Q1 2014 Update Call 2
Slide 3: Agenda
AGENDA 1 Highlights Q1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 8 May 2014 | Q1 2014 Update Call 3
Slide 4: Q1 2014: Financial Highlights
Q1 2014: FINANCIAL HIGHLIGHTS Solid start into 2014 Order intake increases year-over-year Revenue stable with book-to-bill > 1 – €1,196m; growth of 4.4% follows market – €1,089m; up 0.3% year-over-year momentum – New truck revenues impacted by Q4 order – Western European recovery continues intake –
Slide 5: Q1 2014: Operational Highlights
Q1 2014: OPERATIONAL HIGHLIGHTS Profitable growth strategy on track Global markets – Western European recovery and sustained strong growth in China and USA maintain pace – Strong emerging markets business with 1/3 of volume for KION – Expanding leading position in E-Trucks with ongoing innovations a
Slide 6: Current Market Development
CURRENT MARKET DEVELOPMENT Strong start into 2014 Global orders increase by 10% in Q1 Global market – Global market marks new quarterly high Growth y-o-y (r.s.) Order intake in thousand units (l.s.) – Upward trend continues with slight moderation 300 20% – Major markets of China, Western Europe & No
Slide 7: Regional Market Development
REGIONAL MARKET DEVELOPMENT Continued momentum in major global markets Year-over-year change in % North America Eastern Europe Q3/13 Q4/13 Q1/14 Q3/13 Q4/13 Q1/14 13.5% 10.3% 14.2% Western Europe 7.4% 13.9% -6.9% Q3/13 Q4/13 Q1/14 -2.0% 10.1% 10.3% China Q3/13 Q4/13 Q1/14 21.2% 23.4% 17.7% Central/S
Slide 8: Western Europe
WESTERN EUROPE Underlying recovery to become increasingly visible Country markets pre- and post crisis Indexed LTM order units (year end 2006=100) – Core markets show sustained upward momentum as macro- 120 economic recovery stays on track Germany – Sentiment and early indicators U.K. suggest a robu
Slide 9: KION Performance
KION PERFORMANCE Benefitting from European recovery and good start in Asia Orders 3% above previous year in Q1 KION global orders – High level of 39,200 units in Q1 Order intake in thousand units – Drivers: Recovery in Western Europe and expansion of our position in Emerging Asia 50 +3.1% Recovery i
Slide 10: Regional Perspective
REGIONAL PERSPECTIVE Positive development in volume markets Regional development Western Europe – Market: continued recovery partially driven by Order intake in units: %-change 2014 vs. 2013 rental fleet additions of counterbalance trucks – KION: solid progress, improving high level Market KION Q1 Q
Slide 11: Global Economy Platform
GLOBAL ECONOMY PLATFORM Above market growth in China, leveraging in other growth markets New products launched in China Use for global platform – New 3.5t model – Baoli and Voltas share modular platform of – Introduction of “D-one”, D-series with manual D-series: transmission and 3m simplex mast B
Slide 12: Weichai Power Cooperation
WEICHAI POWER COOPERATION Good progress in many areas indicates attractive potential Joint purchasing initiative Weichai distribution to drive services business model – First pilot of joint purchasing with four – Linde China signed on 22 new dealers of companies of Shandong Heavy Industry Weichai Po
Slide 13: E-Truck Market
E-TRUCK MARKET KION undisputed leader Market KION Performance – Europe largest E-Truck Control of key Continuous product Expansion of strong market worldwide (>1/3)1 technologies innovation market position – Strong growth in China (2007-13: +11.6% p.a.) Proprietary development Launches in 2014 Marke
Slide 14: Agenda
AGENDA 1 Highlights Q1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 8 May 2014 | Q1 2014 Update Call 14
Slide 15: Key Financials Q1 2014
KEY FINANCIALS Q1 2014 Momentum in Western Europe drives top line growth Order intake (€m) Revenues (€m) Adj. EBIT1 (€m) Net income and growth (%) and growth (%) and margin (%) and growth (%) +4.4% +0.3% 8.5% 8.0% FX effect: €19m FX effect: €18m 1,196 -5.8% 1,145 1,085 1,089 93 -2.7% 87 29 28 Q1 201
Slide 16: Order Intake by Quarter
ORDER INTAKE BY QUARTER Growth reflecting recovery Order intake (€m)1 – Strong 1st quarter compared to prior 1,205 1,193 1,196 years 1,168 1,166 1,145 1,105 – Order backlog 1,052 1,046 increased to €764m in Q1 2014 (+€70m) – Book-to-bill >1 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4
Slide 17: Revenue Development
REVENUE DEVELOPMENT Continued service growth Q1 2014: revenue by product categories (€m) +0.3% New trucks Services -5.5% +7.9% -34 8 9 21 1,085 1,089 Q1 2013 New business After sales Rental Used & other Q1 2014 – New business affected by negative FX effects and lower order book level at year-end 201
Slide 18: Adjusted EBIT and EBITDA
ADJUSTED EBIT AND EBITDA EBIT margin in Q1 reflects seasonal patterns Adjusted EBIT (€m) and margin1 Main margin development drivers 8.5% 8.0% – Further improvement of gross margin across product segments 93 87 – Negative FX effects in Q1 – Fixed cost increase well under control – Continued high R&D
Slide 19: Adjusted EBIT to Net Income
ADJUSTED EBIT TO NET INCOME Q1 2014 Improved interest level – offset by higher tax expenses 1 € million Q1 2014 Q1 2013 Change Adjusted EBIT1 87 93 -5.8% – 2013 includes €8m positive effect from HYD Non-recurring items -5 1 <-100% carve out KION acquisition items -6 -8 23.2% Reported EBIT 77 86 -10.
Slide 20: Cash Flow Performance
CASH FLOW PERFORMANCE FCF development driven by EBITDA and TWC € million Q1 2014 Q1 2013 Change – 2013 including additional effect of Weichai transaction EBITDA (excl. FS segment) 148 154 -3.8% Change of trade working capital -90 -82 -10.1% – Total TWC: €611m; Seasonal development comparable to prio
Slide 21: Net Debt Development
NET DEBT DEVELOPMENT Steady development with typical seasonal pattern Net debt 31 Mar 2014 Net debt development [€m] – Seasonal swing in group financial net debt 1.4x1 2.9x2 – Minor movements in rental fleet 587 1,932 financing and FS net financial debt – Increase in pension liabilities due to 587 l
Slide 22: Financing Update
FINANCING UPDATE Bond calls and ratings upgrades Maturity profile after bond calls Refinancing of pre-IPO bonds on 15 April (€mn) – Call of two pre-IPO bonds 1,200 €325m 2018 bond with 7.875% 1,045 €200m 2020 bond with Euribor +4.50% 1,000 – Refinancing with long-term, pre-payable bank debt 800
Slide 23: Agenda
AGENDA 1 Highlights Q1 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 8 May 2014 | Q1 2014 Update Call 23
Slide 24: 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 consolidated revenue compared with
Slide 25: Investment Highlights
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 Profitabili
Slide 26: We Keep the World Moving
WE KEEP THE WORLD MOVING 8 May 2014 | Q1 2014 Update Call 26
Slide 27: Annex
ANNEX 8 May 2014 | Q1 2014 Update Call 27
Slide 28: Key Financial Figures by Quarter
KEY FINANCIAL FIGURES BY QUARTER March 2014 Order intake (€m)1 Revenue (€m)1 1,252 1,205 1,196 1,193 1,168 1,166 1,178 1,145 1,145 1,149 1,122 1,105 1,096 1,085 1,089 1,082 1,085 1,089 1,052 1,046 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 2012 2013 2012 2013 2012 2013 2012 2013 201
Slide 29: IR Services
IR SERVICES Financial Calendar Date Event 19 May 2014 Annual General Meeting 6 Aug 2014 Report on the second quarter of 2014 (Q2 2014) 5 Nov 2014 Report on the third quarter of 2014 (Q3 2014) 8 May 2014 | Q1 2014 Update Call 29
Slide 30: 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