Slide 1: KION GROUP AG Q3 2017 Update Call
KION GROUP AG Q3 2017 Update Call Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Wiesbaden, 26 October 2017
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | Q3 2017 Update Call | 26 Oct 2017 © 2017 KION GROUP AG. All rights reserved
Slide 3: Q3 2017 Strategic Highlights
Q3 2017 Strategic Highlights Continuous expansion of KION’s offering Dematic agreement with AutoStore Lithium-ion technology continues to advance − Agreement will enable Dematic to expand omni- − Market launch of lithium-ion trucks with two to three channel integrated solution offering tons load
Slide 4: Q3 2017 Financial Highlights
Q3 2017 Financial Highlights KION remains on course for profitable Q3 despite headwinds − Outlook FY2017 for Group slightly lowered Outlook − IT&S1 segment outlook increased to reflect continued strong momentum − SCS2 segment outlook adjusted downwards to reflect lower than anticipated run-rate in F
Slide 5: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5 KION GROUP AG | Q3 2017 Update Call | 26 Oct 2017 © 2017 KION GROUP AG. All rights reserved
Slide 6: Market Development
Market Development Industrial truck market maintains dynamic growth Order intake unit growth y-o-y (in %) North America China Q4/16 Q1/17 Q2/17 Q3/17 Western Europe Q4/16 Q1/17 Q2/17 Q3/17 0.9% 6.6% 8.1% -0.9% Q4/16 Q1/17 Q2/17 Q3/17 33.9% 46.3% 36.5% 39.0% 9.7% 10.6% 7.3% 8.9% Eastern Europe Q4/16
Slide 7: KION Development
KION Development KION continues to benefit from strong global market Industrial trucks: Regional development Western Europe Order intake (in ‘000 units) and growth y-o-y (in %) – Market: Persisting growth momentum Q1-Q3 2017 Q3 2017 – KION: Above market in Q3 Market KION Market KION Eastern Europe –
Slide 8: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 8 KION GROUP AG | Q3 2017 Update Call | 26 Oct 2017 © 2017 KION GROUP AG. All rights reserved
Slide 9: Q1-Q3 Key Financials
Q1-Q3 Key Financials Continued strong profitable growth Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +40.7% +47.5% 9.5% 9.9% 5,699 5,675 4,050 3,848 +53.4% 562 +40.2% 366 230 164 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 2016 2017 2016 2017 2016 20
Slide 10: Q3 2017 Key Financials
Q3 2017 Key Financials Margin improvement despite headwinds Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +39.2% +44.0% 9.9% 10.5% 1,847 1,847 1,327 1,283 +53.6% +19.0% 127 195 80 67 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 − Negati
Slide 11: Industrial Trucks & Services
Industrial Trucks & Services Normalised growth and stable margin in Q3 2017 Key financials Revenue by category Based on FY 2016 financials Order intake +9.2% +5.2% (in €m) 3,919 4,280 1,284 1,352 Services New business Q1-Q3 2016 Q1-Q3 2017 Q3 2016 Q3 2017 45% 55% +8.2% +6.2% Revenue 3,761 4,070 1,25
Slide 12: Supply Chain Solutions
Supply Chain Solutions Topline lower than anticipated but strong margin step-up Key financials Revenue by category Based on FY 2016 financials Order intake (in €m) 1,406 493 Business 118 38 Services solutions 72% Q1-Q3 2016 Q1-Q3 2017 Q3 2016 Q3 2017 28% Revenue 1,593 514 (in €m) 75 27 Q1-Q3 2016 Q1
Slide 13: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Strong net income increase despite Dematic PPA Q1-Q3 Q1-Q3 Q3 Q3 (in €m) 2017 2016 Change 2017 2016 Change Explanations Adjusted EBITDA 898 654 37.4% 310 224 38.1% − Non-recurring items result D&A 337 288 16.9% 115 97 18.0% mainly from expenses relating Adjusted EBIT 56
Slide 14: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow supported by operating performance Q1-Q3 Q1-Q3 (in €m) 2017 2016 Change Explanations EBITDA 870 631 37.9% − Operating performance drives Change in Net Working Capital (NWC) -252 -141 -78.9% strong free cash flow Taxes paid -70 -77 9.0% Pension payments -22 -15
Slide 15: Net Debt
Net Debt Stable net debt and leverage Net debt as at 30 Sep 2017 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt remained unchanged compared to June 2017 2.0x1 2.6x2 3.4x2 − Leverage on industrial net operating debt 940 3,629 remained unchanged
Slide 16: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 16 KION GROUP AG | Q3 2017 Update Call | 26 Oct 2017 © 2017 KION GROUP AG. All rights reserved
Slide 17: Industrial Trucks & Services
Industrial Trucks & Services Outlook increased to reflect continued strong momentum Order intake Explanations (in €m) Outlook Adjusted outlook − Order intake in Q3 2017 shows FY 2017: FY 2017: continued growth but at a more Q1-Q3 2017: 4,280 5,450-5,600 5,650-5,800 normalised level − Performance yea
Slide 18: Supply Chain Solutions
Supply Chain Solutions Outlook adjusted downwards to reflect lower than anticipated run-rate Order intake Explanations (in €m) Outlook Adjusted outlook − Order intake in Q3 2017 was above level FY 2017: FY 2017: of first and second quarter, but lower Q1-Q3 2017: 1,406 2,350-2,650 1,900-2,100 than an
Slide 19: Supply Chain Solutions
Supply Chain Solutions Pipeline review has identified key reasons for outlook adjustment Order intake Explanations Illustrative (in €m) 1− Hesitation to invest despite growth in 2,350-2,650 US retail, esp. General Merchandise 1,900-2,100 and Apparel 2− Delayed projects: Longer than expected negotiat
Slide 20: FY 2017 Outlook
FY 2017 Outlook Guidance adjusted slightly based on Q1-Q3 preliminaries KION Group Industrial Trucks & Services Supply Chain Solutions Adjusted Adjusted Adjusted (in €m) Outlook outlook Outlook outlook Outlook outlook Order intake 7,800 – 8,250 7,550 – 7,900 5,450 – 5,600 5,650 – 5,800 2,350 – 2,650
Slide 21: FY 2017 Outlook
FY 2017 Outlook Group outlook for order intake, revenue and adj. EBIT lowered by 1%-4% Order intake Revenue Adj. EBIT (in €m) (in €m) (in €m) -4.2% -3.1% -4.4% -3.2% -1.3% -3.4% 7,800 8,250 7,550 7,900 7,500 7,950 7,400 7,700 740 800 765 715 Outlook Adjusted outlook Outlook Adjusted outlook Outlook
Slide 22: Financial Calendar
Financial Calendar Date Event Financial statements press conference and analyst call 1 March 2018 Publication of 2017 annual report (FY 2017) 26 April 2018 Quarterly statement for the period ended 31 Mar 2018 (Q1 2018) and analyst call 9 May 2018 Annual General Meeting Subject to change without noti
Slide 23: 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