Slide 1: KION Update Call FY 2014
KION UPDATE CALL FY 2014 Gordon Riske, CEO Thomas Toepfer, CFO Wiesbaden, 19 March 2015
Slide 2: Agenda
AGENDA 1 Highlights FY 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 19 March 2015 | Update Call FY 2014 © 2015 KION GROUP AG. All rights reserved 2
Slide 3: FY 2014: Year of Records and Strategic Milestones
FY 2014: YEAR OF RECORDS AND STRATEGIC MILESTONES Record Success in R&D in focus levels emerging New volume for all markets platform trucks KPIs China Strengthened Guidance Eastern automation achieved Europe competence Strategy 2020 Optimization of under way manufacturing setup
Slide 4: FY 2014: Financial Highlights
FY 2014: FINANCIAL HIGHLIGHTS Setting records with all KPIs – guidance clearly achieved Strong order intake growth Revenue growth in all business areas – FY: €4,877m up 9% compared to 2013 – FY: €4,678m slightly above 2013 – Q4: €1,311m up 10% on previous year – Q4: €1,306m up 11% on previous year –
Slide 5: FY 2014: Capital Market Highlights
FY 2014: CAPITAL MARKET HIGHLIGHTS MDAX inclusion & free float increase strengthen visibility of stock KION share price performance 28 June 2013 – 18 March 2015 MDAX inclusion strengthens Share price Volume visibility of KION share (in €m) (in m units) Inclusion of KION in MDAX 40 Price 18.3.15 5.
Slide 6: FY 2014: Operational Highlights
FY 2014: OPERATIONAL HIGHLIGHTS Strategy 2020 and innovation support growth momentum – KION unit growth in FY with 8.5% above world market growth of 7.8%, Above market and also for Q4 (KION 7.5%, market 6.3%) growth in – KION shows strong growth in Western Europe, slightly below market FY and Q4 – K
Slide 7: Market Development
MARKET DEVELOPMENT Global market finishes record year with solid gains Global market order intake and growth Global market maintains momentum in Q4 Order Intake Growth y-o-y – Global orders increase by 6% in Q4 to order (in ´000 units) (in %) volume of 274,500 units 350 20% – E- and WH-trucks drive
Slide 8: Market Development: Steady global growth trend with regional differences
MARKET DEVELOPMENT Steady global growth trend with regional differences Order intake unit growth y-o-y (in %) North America Eastern Europe Q2/14 Q3/14 Q4/14 Q2/14 Q3/14 Q4/14 2.3% 1.2% 18.9% Western Europe 9.5% 5.3% -9.8% Q2/14 Q3/14 Q4/14 14.0% 13.7% 8.3% China Q2/14 Q3/14 Q4/14 12.6% 6.7% 3.7% Sou
Slide 9: Market Development – Western Europe
MARKET DEVELOPMENT – WESTERN EUROPE Core markets benefit from replacements and pent-up demand Country markets pre- and post crisis (status as at 31 Dec 2014) Positive trend continues Indexed LTM order units (LTM Jan. 2007=100) Recovery in core markets progresses 120 Replacement activity Germany
Slide 10: KION Performance
KION PERFORMANCE Good order momentum in Q4 KION global orders Overall growth above market (in ´000 units) – High level of 39,700 units in Q4 2014 50 – Orders 7.5% above previous year in Q4 +7.5% vs. market with growth of 6.3% 39.7 40 37.0 – Benefiting from gains in Europe and China 30 Good finish fo
Slide 11: Regional Perspective
REGIONAL PERSPECTIVE KION stays on course in emerging markets Regional development Western Europe Order intake unit growth y-o-y in % – Market: Replacements and pent-up demand support growth momentum FY 2014 Q4 2014 – KION: Solid growth trend Market KION Market KION Eastern Europe Western 11.5 9.5 8
Slide 12: Strategy 2020
STRATEGY 2020 KION is more than the sum of its parts Objective Even stronger focus on customer satisfaction, quality and innovation Strategic Regional growth strategies Aftersales and service levers Support KION GROUP Multi-brand functions STRATEGY 2020 strategy Manufacturing setup Platform/module s
Slide 13: Strategy 2020: Margin drivers under implementation
STRATEGY 2020 Margin drivers under implementation – first effects in 2016 Margin drivers Activities 2014 Next steps Manufacturing Manufacturing New multi-brand plant in Start of production in 2016 setup setup Pilsen, CZ Investment program at core Completion of program plants in Germany by 2021 G
Slide 14: Strategy 2020: Margin drivers impact gross margin and SG&A cost
STRATEGY 2020 Margin drivers impact gross margin and SG&A cost Margin drivers P&L impact Recent development Simplified P&L Gross margin (in % of revenues) Manufacturing Manufacturing Revenues 27.4% 27.6% 28.7% setup setup Cost of sales Globalplatform/ Global platform/ modulestrategy module strategy
Slide 15: Automation: Broad product and solutions portfolio
AUTOMATION KION offers broad product and solutions portfolio Automated products Intralogistics solutions Examples Example Full range of automated series trucks enable Customized intralogistics solutions result from automation of the entire material flow the combination of automated trucks with
Slide 16: Automation: Linde and STILL automated forklift trucks
AUTOMATION Linde and STILL pushing ahead on automated forklift trucks Linde – Cooperation on robotics solutions STILL – Winner in autonomous transports Linde signs cooperation agreement with French STILL wins prize at Innovative Logistics Solutions robotics specialist Balyo in January 2015 Day i
Slide 17: Agenda
AGENDA 1 Highlights FY 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 19 March 2015 | Update Call FY 2014 © 2015 KION GROUP AG. All rights reserved 17
Slide 18: Key Financials FY 2014
KEY FINANCIALS FY 2014 Another record year with all KPIs above previous year Adjusted EBIT1 and Order intake Revenues margin (in %) Net income (in €m) +8.6% +4.1% 9.3% 9.5% FX effect: FX effect: [€38m] [€34m] 4,877 4,495 4,678 4,489 +6.3% +28.8% 417 443 178 138 FY FY FY FY FY FY FY FY 2013 2014 2013
Slide 19: Key Financials Q4 2014
KEY FINANCIALS Q4 2014 Revenue and order intake with strong growth in Q4 Adjusted EBIT1 and Order intake Revenues margin (in %) Net income (in €m) +9.9% +10.8% 9.8% 10.3% FX effect: FX effect: [€-7m] [€-5m] 1,311 1,306 1,193 1,178 +16.1% 134 116 +4.4% 60 57 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 2013 2014 2013 201
Slide 20: Order Intake
ORDER INTAKE Order intake growth continues in Europe and China KION global order intake1 Comments (in €m) – Continued strong order +9.9% intake growth in Q4, despite 1,311 high base in 2013 1,205 1,193 1,196 1,228 1,145 1,105 1,142 – Growth driven by Europe 1,046 and China – Healthy order backlog at
Slide 21: Revenues
REVENUES Strong new business growth in Q4 FY 2014: Revenue by product categories Q4 2014: Revenue by product categories (in €m) (in €m) +4.1% +10.8% New business Services New business Services +0.5% +8.6% +12.8% +8.4% 4,678 1,306 12 50 13 19 44 84 76 4,495 1,178 13 FY New After Rental Used & FY Q4 N
Slide 22: Adjusted EBIT and EBITDA
ADJUSTED EBIT AND EBITDA Gross margin in Q4 drives adjusted EBIT increase Adjusted EBIT1 and margin (in %) Comments (in €m) – Gross margin increase driven by 9.3% 9.5% 9.8% 10.3% new business product mix (esp. growth in E-trucks) and continued 417 443 strong growth in services 116 134 – Increase in
Slide 23: Adjusted EBIT to Net Income
ADJUSTED EBIT TO NET INCOME Strong underlying net income growth 1 Q4 Q4 FY FY Comments (in €m) Change Change 2014 2013 2014 2013 – NRI impact from 1 Adjusted EBIT 134 116 16.1% 443 417 6.3% 30% stake in Linde Hydraulics Non-recurring items (NRI) -10 -1 <-100% -57 -13 <-100% of €28m and KION acquisit
Slide 24: Free Cash Flow
FREE CASH FLOW Strong increase in operating cash flow FY FY Comments (in €m) Change 2014 2013 EBITDA (excl. FS segment) 632 643 -1.7% – EBITDA 2014 includes the negative €28m (non-cash) effect from Linde Hydraulics, Change of TWC -34 17 <-100% which is reversed in the line “Other” Taxes paid -51 -12
Slide 25: Net Debt
NET DEBT Leverage improves compared to previous year Net debt and leverage as at 31 December 2014 Net debt development (in €m) – Group net financial debt decreases by €169m from Dec 2013 due to cash 1.0x1 1.6x2 2.7x2 generation 766 1,911 – Leverage thereby improves compared to previous quarter – Inc
Slide 26: Pension Liabilities
PENSION LIABILITIES 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 800 766 6 offsetting pension assets 700 700 – Smaller plans in other countries 628 587
Slide 27: Agenda
AGENDA 1 Highlights FY 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 19 March 2015 | Update Call FY 2014 © 2015 KION GROUP AG. All rights reserved 27
Slide 28: Outlook Comparison 2014
OUTLOOK COMPARISON 2014 Guidance achieved for all key performance indicators Actuals Actuals Y-o-Y (in €m) FY 2013 Guidance FY 2014 FY 2014 change Evaluation Order intake 4,489 Slight increase compared with 2013 4,877 +8.6% Revenues 4,495 Slight increase compared with 2013 4,678 +4.1% Adj. EBIT
Slide 29: Outlook 2015
OUTLOOK 2015 Further improvement on our record results 2014 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 consolidated sustain
Slide 30: 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 31: 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 32: We Keep the World Moving
WE KEEP THE WORLD MOVING 19 March 2015 | Update Call FY 2014 © 2015 KION GROUP AG. All rights reserved 32
Slide 33: Key Financials: Figures by quarter
KEY FINANCIALS Figures by quarter Order intake1 Revenue1 (in €m) (in €m) 1,228 1,311 1,252 1,178 1,306 1,205 1,193 1,145 1,196 1,142 1,193 1,149 1,144 1,178 1,105 1,046 1,085 1,089 1,082 1,139 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2012 2013 2013 2014 2013 2014 2013 2014 2013 20
Slide 34: 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