Kion Group Ag · XETR:KGX
Kion — FY2023 Earnings Presentation
26 slides from Kion's earnings presentation, Feb 29, 2024
Slide 1: KION GROUP AG Q4 and FY 2023 Update Call
KION GROUP AG Q4 and FY 2023 Update Call Rob Smith (CEO), Christian Harm (CFO) Frankfurt, 29 February 2024
Slide 2: Agenda
Agenda 1. Summary FY 2023 & ESG Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 2 KION GROUP AG | Q4 and FY 2023 Update Call | 29 February 2024
Slide 3: FY 2023 Key Financial Figures
FY 2023 Key Financial Figures FY 2023 marked by strong rebound in profitability Order intake Revenue Adj. EBIT1 Free cash flow EPS DPS2 €10.9bn €11.4bn €791m €715m €2.33 €0.70 -7% yoy +3% yoy +170% yoy +€1,431m yoy +212% yoy ~30% payout ratio Margin of 6.9% ~€92m payout +430bp yoy Guidance achieved
Slide 4: ESG Update FY 2023
ESG Update FY 2023 Progressing on our sustainability journey SBTi commitment in July 2023, targets KION again included in the expected to be validated in 2024 S&P Global Sustainability Yearbook 2024 (top 15% of the industry) Share of electrified new trucks at 91% in 2023 reaching our 2027 target (90
Slide 5: Agenda
Agenda 1. Summary FY 2023 & ESG Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 5 KION GROUP AG | Q4 and FY 2023 Update Call | 29 February 2024
Slide 6: ITS – Key Financials
ITS – Key Financials Strong shipments support record quarterly revenue 1 1 (in €m) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Change yoy Change qoq FY 2022 FY 2023 Change yoy Order intake (in ‘000 units) 41.0 59.4 62.3 53.0 67.0 +63% +26% 268.2 241.7 -10% Order intake 1,694 1,957 2,001 1,757 2,176 +29%
Slide 7: SCS – Key Financials
SCS – Key Financials Strong contribution from services - adj. EBIT in line with guidance for stronger H2 1 1 (in €m) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Change yoy Change qoq FY 2022 FY 2023 Change yoy Order intake 882 497 873 872 789 -11% -9% 3,362 3,032 -10% Of which E-commerce (%)2 4% 29% 53%
Slide 8: KION Group – Key Financials
KION Group – Key Financials Revenue surpassed €3bn for the first time, adj. EBIT more than doubled in Q4 23 1 1 (in €m) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Change yoy Change qoq FY 2022 FY 2023 Change yoy Order intake 2,536 2,444 2,864 2,621 2,947 +16% +12% 11,708 10,876 -7% Order book 7,078 6,6
Slide 9: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Strongly improved adj. EBIT partially offset by NRI and higher net financial expenses Q4 Q1 Q2 Q3 Q4 Change Change FY FY Change (in €m) 2022 2023 2023 2023 2023 yoy qoq 2022 2023 yoy Comments on Q4 23 Adj. EBITDA 325 390 436 463 460 41% -1% 1,219 1,749 +43% 1 NRI includ
Slide 10: Cash Flow Statement
Cash Flow Statement Strong Q4 23 FCF driven by improved earnings and NWC release Free cash flow Q4 2023 Comments (in €m) 545 58 8 -161 386 1 NWC release in Q4 23 driven 184 2 2 -41 325 by lower inventories (work in -21 170 126 progress and finished goods) 1 and lower trade receivables, partly compen
Slide 11: Net Debt
Net Debt Higher LTM adj. EBITDA leads to further improved leverage ratios Indebtedness and leverage1 ratios as at 31 December 2023 Comments (in €m) 2 1.9x 1 Positive free cash flow in 2 3 Q4 partially used for 3,241 1.5x repayment of financial debt, reducing net financial debt 675 2,566 by €325m 2 L
Slide 12: Agenda
Agenda 1. Summary FY 2023 & ESG Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 12 KION GROUP AG | Q4 and FY 2023 Update Call | 29 February 2024
Slide 13: FY 2024 Outlook
FY 2024 Outlook H2 adj. EBIT expected to be slightly stronger than H1 driven by SCS KION Group Industrial Trucks & Services Supply Chain Solutions (in €m) FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 Actuals Outlook Actuals Outlook Actuals Outlook Revenue 11,434 11,200 – 12,000 8,480 8,500 – 9,00
Slide 14: Key Takeaways
Key Takeaways KION more than doubled adj. EBIT and margin in 2023 with outstanding free cash flow Following a year of normalization in 2023, we expect both the industrial truck and warehouse automation markets to show slight growth in 2024 Strong momentum going into FY 2024, targeting further margin
Slide 15: Q & A Session
Q & A Session 15 KION GROUP AG | Q4 and FY 2023 Update Call | 29 February 2024
Slide 16: Appendix
Appendix
Slide 17: FY 2024 Assumptions for Guidance
FY 2024 Assumptions for Guidance Slight growth ahead Global Growth expectations of 3.1% (IMF as of 30 January 2024) developed countries 1.5% (Euro area 0.9%, US 2.1%) emerging countries 4.1% (China 4.6%) Assumptions for major currencies quoted against the euro (base currency) USD: 1.10 CNY:
Slide 18: FY 2024 Expectation – Housekeeping Items
FY 2024 Expectation – Housekeeping Items Non-recurring items1 Operating Capex2 … between -€10m to -€20m … between -€400m to -€450m PPA R&D spending3 … around -€90m to -€95m … around 3% of group revenue Net financial expenses … between -€170m to -€200m Dividend policy … 25% to 40% of consolidated net
Slide 19: FY 2024 – Change in Presentation of SCS Customer Service Business
FY 2024 – Change in Presentation of SCS Customer Service Business SCS to follow the ITS methodology Starting in FY2024, SCS Customer Service business will be aligned with methodology applied in ITS SCS Customer Services order intake will exclude Modernizations & Upgrades and will equal revenue (
Slide 20: FY 2023 Outlook to Actual Results Comparison
FY 2023 Outlook to Actual Results Comparison FY 2023 marked by strong rebound in profitability KION Group Industrial Trucks & Services Supply Chain Solutions (in €m) Outlook Actuals Outlook Actuals Outlook Actuals Revenue ≥ 11,200 11,434 ≥ 8,200 8,480 ≥ 3,000 2,997 Adj. EBIT ≥ 780 791 ≥ 830 849 ≥ 55
Slide 21: Key Financials
Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 (in €m) 2023 2023 2023 2023 2023 2022 2022 2023 2023 2023 2023 2023 2022 2022 2023 2023 2023 2023 2023 2022 2022 Order intake 10,876 2,947 2,621 2,864 2,444
Slide 22: Leverage Development and Maturity Profile
Leverage Development and Maturity Profile Leverage ratios improved further in Q4 2023 Leverage development1,2 Maturity profile and free liquidity as at 31 December 2023 (in €m) 4.0x 1.0 0.9 3.2x 0.8 1,674 2.8x 2.8x 3 2.5x 2.4x 0.7 310 1,500 2.4x 2.3x 2.7x 0.6 2.0x 1.9x 1.9x 1.6x 1.6x 0.5 1.5x 1,000
Slide 23: ITS Order Intake
ITS Order Intake Share of electrified products at 91% in Q4 and FY 2023 Development of KION ITS segment Order intake Change Change Change Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2020 FY 2021 FY 2022 FY 2023 yoy qoq yoy Order intake (in ‘000 units) 41.0 59.4 62.3 53.0 67.0 +63% +26% 198.3 299.4 26
Slide 24: Industrial Truck Market and ITS Order Intake
Industrial Truck Market and ITS Order Intake KION global market share improved slightly yoy in Q3 23 Industrial Truck Market1 Development of KION ITS segment Region Q4 FY Q1 Q2 Q3 Q4 Regional growth Q4 FY Q1 Q2 Q3 Q4 FY 2 (Change in units yoy) 2022 2022 2023 2023 2023 2023 (Change in units yoy) 2022
Slide 25: Financial Calendar
Financial Calendar Date Event 01 March 2024 KION @ UBS Roadshow, Frankfurt, Germany 05 March 2024 KION @ Morgan Stanley Paris Industrials Day, Paris, France 14 March 2024 KION @ HSBC Luxembourg Day, Luxembourg 20 March 2024 KION @ Jefferies Pan-European Mid-Cap Conference, London, UK 21 March 2024 K
Slide 26: Disclaimer
Disclaimer This document has been prepared by KION GROUP AG (the “Company”, and together with its consolidated subsidiaries, the "KION Group") solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral p