Kion Group Ag · XETR:KGX
Kion — Q3 2024 Earnings Presentation
25 slides from Kion's earnings presentation, Oct 30, 2024
Slide 1: KION GROUP AG Q3 2024 Update Call
KION GROUP AG Q3 2024 Update Call Rob Smith (CEO), Christian Harm (CFO) Frankfurt, 30 October 2024
Slide 2: Agenda
Agenda 1. Summary Q3 2024 & Business Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 2 KION GROUP AG | Q3 2024 Update Call | 30 October 2024 | Classification: Public
Slide 3: Q3 2024 Key Financial Figures
Q3 2024 Key Financial Figures Stable adj. EBIT margin yoy despite tough comps Order intake Revenue Adj. EBIT1 Free cash flow EPS €2.4bn €2.7bn €220m €229m €0.55 -8% yoy -1% yoy -2% yoy +€129 m yoy -9% yoy -8% qoq -6% qoq -0% qoq +€93 m qoq +6% qoq Margin of 8.1% -10bp yoy +50bp qoq Order intake: ITS
Slide 4: Business Update Q3 2024: Automation in the focus
Business Update Q3 2024 Automation in the focus 1 KION Group opens Center of Excellence for automated solutions in Antwerp bringing KION brands (LMH, STILL and Dematic) under one roof 2 Strategic partnership with Eurofork enhancing our product portfolio with automated high-density cubic solutions 3
Slide 5: Agenda
Agenda 1. Summary Q3 2024 & Business Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 5 KION GROUP AG | Q3 2024 Update Call | 30 October 2024 | Classification: Public
Slide 6: ITS – Key Financials
ITS – Key Financials Q3 adjusted EBIT margin reflecting a higher share of APAC / WH equipment 1 Change Change (in €m) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 yoy qoq Order intake (in ‘000 units) 53.0 67.0 59.3 63.9 51.7 -3% -19% Order intake 1,757 2,176 1,804 1,966 1,797 +2% -9% Order book 3,366 3,1
Slide 7: SCS – Key Financials
SCS – Key Financials Continued sequential improvement in profitability 1 Change Change (in €m) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 yoy qoq Order intake2 892 779 642 677 636 -29% -6% Of which E-commerce (%)3 7% 61% 38% 61% 30% Order book2 3,024 2,921 2,778 2,732 2,542 -24% -7% Revenue 719 781 719
Slide 8: KION Group – Key Financials
KION Group – Key Financials Year-on-year profitability remained stable despite tough comps 1 Change Change (in €m) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 yoy qoq Order intake2 2,641 2,936 2,439 2,640 2,427 -8% -8% Order book2 6,321 6,045 5,588 5,272 4,804 -27% -9% Revenue 2,730 3,086 2,859 2,877 2,
Slide 9: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Higher net financial expenses and taxes impacted net income Q3 Q4 Q1 Q2 Q3 Change Change (in €m) 2023 2023 2024 2024 2024 yoy qoq Comments Adj. EBITDA 463 460 474 474 471 +2% -1% 1 Sequential deterioration in net D&A -239 -241 -248 -254 -251 -5% +1% financial expenses m
Slide 10: Cash Flow Statement
Cash Flow Statement Triple-digit FCF driven by strong EBIT and some NWC improvements Free cash flow Q3 2024 Comments (in €m) 329 51 -39 -6 129 1 2 -106 229 1 Improved NWC: mainly driven 194 7 -44 163 by favorable development of -2 -19 trade receivables and increase in contract liabilities, partially
Slide 11: Net Debt
Net Debt Further deleveraging results in improved leverage ratios Indebtedness and leverage1 ratios as at 30 September 2024 Comments (in €m) 2 1.7x 1 Strong FCF supports further 2 deleveraging 3,273 1.4x 711 2 Leverage ratios improved by 2,563 0.1x sequentially across all metrics despite sequentiall
Slide 12: Agenda
Agenda 1. Summary Q3 2024 & Business Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 12 KION GROUP AG | Q3 2024 Update Call | 30 October 2024 | Classification: Public
Slide 13: FY 2024 Outlook
FY 2024 Outlook Good 9M provides confidence for FY 2024 outlook KION Group Industrial Trucks & Services Supply Chain Solutions (in €m) Old Updated Old Updated Old Updated Revenue 11,300 – 11,700 11,400 – 11,600 8,500 – 8,700 8,500 – 8,600 2,800 – 3,000 2,900 – 3,000 change yoy: -1% to +2% -0% to +1%
Slide 14: Key Takeaways
Key Takeaways Solid financial performance KION stabilized adj. EBIT and adj. EBIT margin in Q3 2024 yoy on tough comps FY 2024 outlook confirmed, and guidance ranges narrowed Good 9M provides confidence for FY 2024 outlook We have successfully brought our lead times in ITS back to a more normal
Slide 15: Q & A Session
Q & A Session ? ! 15 KION GROUP AG | Q3 2024 Update Call | 30 October 2024 | Classification: Public
Slide 16: Appendix
Appendix 16 KION GROUP AG | Q3 2024 Update Call | 30 October 2024 | Classification: Public
Slide 17: FY 2024 Assumptions for specified FY 2024 Outlook
FY 2024 Assumptions for specified FY 2024 Outlook Anticipated market recovery slightly delayed in both market segments Global Growth expectations of 3.2% (IMF as of 16 July 2024) developed countries 1.7% (Euro area 0.9%, US 2.6%) emerging countries 4.3% (China 5.0%) Assumptions for major currenc
Slide 18: FY 2024 Expectation – Housekeeping Items
FY 2024 Expectation – Housekeeping Items Non-recurring items1 Operating Capex2 … between -€20m to -€25m … between -€375m to -€425m (vs -€10m to -€20m before) (vs -€400m to -€450m before) PPA R&D spending3 … around -€110m to -€115m … around 3% of group revenue Net financial expenses Dividend policy …
Slide 19: FY 2024 – Change in Presentation of SCS Customer Service Business
FY 2024 – Change in Presentation of SCS Customer Service Business SCS following the ITS methodology Starting in FY 2024, 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: Key Financials
Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions Q3 Q2 Q1 FY Q4 Q3 Q2 Q3 Q2 Q1 FY Q4 Q3 Q2 Q3 Q2 Q1 FY Q4 Q3 Q2 (in €m) 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2023 2023 2023 2023 2024 2024 2024 2023 2023 2023 2023 Order intake1 2,427 2,640 2,439 10,850 2,93
Slide 21: Leverage Development and Maturity Profile
Leverage Development and Maturity Profile Leverage ratios improved further in Q3 2024 Leverage development1,2 Maturity profile and free liquidity as at 30 September 2024 (in €m) 4.0x Self-help returns leverage ratios to levels last seen post Dec. 2020 capital increase 4.0 3.2x 3.5 1,780 2.8x 2.8x 3.
Slide 22: ITS Order Intake
ITS Order Intake Share of electrified products at 92% in Q3 2024 Development of KION ITS segment Change Order intake Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Change yoy Change qoq FY 2020 FY 2021 FY 2022 FY 2023 yoy Order intake (in ‘000 units) 53.0 67.0 59.3 63.9 51.7 -3% -19% 198.3 299.4 268.2 241.
Slide 23: Industrial Truck Market and ITS Order Intake
Industrial Truck Market and ITS Order Intake KION global market share comparable to PY level in Q2 24 Industrial Truck Market1 Development of KION ITS segment Region Regional growth Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 (Change in units yoy) (Change
Slide 24: Financial Calendar
Financial Calendar Date Event 07 November 2024 KION @ Bernstein European Sustainability Conference, virtual 12 November 2024 KION @ HSBC Roadshow, Milan, Italy 12 November 2024 KION @ Baader Helvea Roadshow, Dublin, Ireland 14 November 2024 KION @ HSBC Luxembourg Day, Luxembourg 26 November 2024 KIO
Slide 25: 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