Kion Group Ag · XETR:KGX
Kion — Q2 2021 Earnings Presentation
22 slides from Kion's earnings presentation, Jul 29, 2021
Slide 1: KION GROUP AG Q2 2021 Update Call
KION GROUP AG Q2 2021 Update Call Gordon Riske (CEO), Anke Groth (CFO) Frankfurt, 29 July 2021
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Appendix 2 KION GROUP AG | Q2 2021 Update Call | 29 July 2021
Slide 3: H1 2021 Key Financial Figures
H1 2021 Key Financial Figures Outstanding customer demand and improved profitability drive H1 results Order intake Revenue Adj. EBIT1 Free cash flow €5.9bn €5.0bn €462m €301m +33.7% y-o-y +26.5% y-o-y >100% y-o-y +€521m y-o-y Margin of 9.3% Outlook for FY 2021 raised 1. Adjusted for PPA items and no
Slide 4: Q2 2021 Highlights
Q2 2021 Highlights New products and expanded footprint strengthen KION’s position 1 2 1 New fully connected electric forklifts from Linde offer the performance level1 of IC trucks 2 Release of new ConfiKIT app for easy conveyor line configuration, supporting start of customer’s automation journey 3
Slide 5: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Appendix 5 KION GROUP AG | Q2 2021 Update Call | 29 July 2021
Slide 6: Industrial Truck Market
Industrial Truck Market Continued strong demand for material handling equipment Order intake (in ‘000 units) and growth y-o-y (in %) North America China Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Western Europe -16.8% -1.1% +9.3% +71.1% +98.9% +40.6% +76.3% +56.8% +131.3% +36.0% Q2/
Slide 7: Industrial Truck Market
Industrial Truck Market Significant outperformance of ITS market during Q2 Industrial trucks: Regional development Industrial trucks: Split by product category Order intake (in ‘000 units) and growth y-o-y (in %) Unit order intake split in % Q2 2021 H1 2021 Market KION Market KION Market KION Wester
Slide 8: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Appendix 8 KION GROUP AG | Q2 2021 Update Call | 29 July 2021
Slide 9: Industrial Trucks & Services
Industrial Trucks & Services Record order intake in Q2 provides improved visibility until year end Key financials1,3 ITS revenue split2,3 (in €bn and change in % y-o-y) Order intake +75.6% +51.0% 4,021 6.4 (in €m) 1,265 2,221 2,663 5.6 5.9 5.7 +6.4% +11.2% -18.3% +9.3% Q2 2020 Q2 2021 H1 2020 H1 202
Slide 10: Capacity and Structural Program
Capacity and Structural Program Further savings from optimization of organizational structures Expected financial impact on P&L and cash flow Explanation (in €m) ▪ Due to dynamic market development, capacity adaptation Q2 2021 / H1 2021: is obsolete, program scope now NRI: ~€3m / ~€4m 80-100 80-100
Slide 11: Supply Chain Solutions
Supply Chain Solutions Successful backlog conversion leads to significantly higher revenue and profit Key financials1 Recent SCS order intake (in €m) Order intake -1.8% +7.2% 839 823 1,058 888 1,023 830 1,039 686 1,058 1,039 1,744 1,869 506 (in €m) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2020 Q2 2021 H1 2020
Slide 12: KION Group
KION Group Significantly improved results across all metrics Key financials1 Additional information on Q2 +40.4% +33.7% 1 Order book: Order intake 4,400 5,882 (in €m) 2,319 3,255 (in €m) Jun 2021 Dec 2020 Change SCS 3,150 3,071 +2.6% Q2 2020 Q2 2021 H1 2020 H1 2021 ITS 2,265 1,384 +63.6% Revenue +36
Slide 13: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Operating performance, lower NRIs and net financial expenses drove net income Q2 Q2 H1 H1 Explanations on Q2 (in €m) 2021 2020 Change 2021 2020 Change 1 Lower non-recurring Adjusted EBITDA 458 268 +70.5% 880 619 +42.0% items compared to D&A -210 -208 -417 -415 pandemic-
Slide 14: Cash Flow Statement
Cash Flow Statement Very solid FCF development driven by strong business activity Free cash flow H1 2021 Explanations on cash flow (in €m) 1 1 Increase in contract assets 2 -62 and inventory build-up only 200 -107 438 415 -9 partially offset by favorable -124 301 trade payables develop- -12 -70 -54
Slide 15: Net Debt
Net Debt Reduced leverage due to positive cash flow development Indebtedness and leverage1,2 ratios as at 30 June 2021 Comments on indebtedness (in €m) 2.2x2 1 Strong cash flow resulted in 2 2.929 significant decrease in net financial debt 2 Net pension liabilities 1.206 decreased to €1,206 (Dec. 20
Slide 16: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Appendix 16 KION GROUP AG | Q2 2021 Update Call | 29 July 2021
Slide 17: FY 2021 Outlook
FY 2021 Outlook Raised outlook on almost all KPIs KION Group Industrial Trucks & Services1 Supply Chain Solutions Old Updated Old Updated Old Updated €9,700m to €10,650m to €11,450m €5,900m to €6,850m to €7,250m €3,800m to €3,800m to €4,200m Order intake €10,400m Change y/y: +12.8% to +21.3% €6,200m
Slide 18: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Appendix 18 KION GROUP AG | Q2 2021 Update Call | 29 July 2021
Slide 19: Financial Calendar
Financial Calendar Date Event 01 September 2021 KION @ UBS Japan Event 01 September 2021 KION @ Commerzbank Corporate Conference 09 September 2021 KION @ Morgan Stanley CEO’s Unplugged Conference 20 September 2021 KION @ Goldman Sachs / Berenberg Corporate Conference 21 September 2021 KION @ Baader
Slide 20: FY 2021 Expectation – Housekeeping Items
FY 2021 Expectation – Housekeeping Items Non-recurring items1 Operating Capex2 … between €15m to €25m … between €400m to €450m PPA R&D spending3 … to be around €85m … around 3% of group revenue Net financial expenses Dividend policy … between €50m to €60m … subject to availability of distributable p
Slide 21: Key Financials
Key Financials Group figures Industrial Trucks & Services2 Supply Chain Solutions Q2 Q1 FY Q4 Q3 Q2 Q1 Q2 Q1 FY Q4 Q3 Q2 Q1 Q2 Q1 FY Q4 Q3 Q2 Q1 (in €m) 2021 2021 2020 2020 2020 2020 2020 2021 2021 2020 2020 2020 2020 2020 2021 2021 2020 2020 2020 2020 2020 Order intake 3,255 2,626 9,443 2,727 2,315
Slide 22: 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