Slide 1: KION GROUP AG FY 2017 Update Call
KION GROUP AG FY 2017 Update Call Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Frankfurt, 1 March 2018
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Strategy “KION 2027” 2 KION GROUP AG | FY 2017 Update Call | 1 March 2018 © 2018 KION GROUP AG. All rights reserved
Slide 3: FY 2017 Strategic Highlights
FY 2017 Strategic Highlights Continuous expansion of KION’s offering − ProMat trade show − Dematic agreement with − Strategic partner- attended in the US AutoStore ship with EP1 − Release of 5 new − Expands offering to ultra- − Exclusive global trucks adapted to US high density storage partnership a
Slide 4: FY 2017 Financial Highlights
FY 2017 Financial Highlights KION fully meets adjusted outlook, achieving record results Outlook − Adjusted outlook for FY 2017 fully achieved across all KPIs − Order intake grew to €8.0bn, revenue to €7.7bn in FY 2017 Growth − IT&S1 increased its full year order intake by 8.8% to €5.9bn and revenue
Slide 5: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Strategy “KION 2027” 5 KION GROUP AG | FY 2017 Update Call | 1 March 2018 © 2018 KION GROUP AG. All rights reserved
Slide 6: Industrial Truck Market: Strong final quarter across all regions
Industrial Truck Market Strong final quarter across all regions Order intake unit growth y-o-y (in %) North America China Q1/17 Q2/17 Q3/17 Q4/17 Western Europe Q1/17 Q2/17 Q3/17 Q4/17 6.6% 8.1% -0.9% 26.1% Q1/17 Q2/17 Q3/17 Q4/17 46.3% 36.5% 39.0% 35.0% 10.6% 7.3% 8.9% 11.6% Eastern Europe Q1/17 Q2
Slide 7: Industrial Truck Market: KION continues to benefit from strong market growth
Industrial Truck Market KION continues to benefit from strong market growth Industrial trucks: Regional development Western Europe Order intake (in ‘000 units) and growth y-o-y (in %) – Market: Persisting growth momentum – KION: Strong growth FY 2017 Q4 2017 Market KION Market KION Eastern Europe –
Slide 8: Supply Chain Solutions Market
Supply Chain Solutions Market Growth drivers and trends remain intact Market growth drivers Growth proxies 2017 E-commerce +17% Global E-commerce +12% growth1 Growth in German Automation logistics space3 +9% Global Digitalisation warehouse capex2 1. Outlook for global E-commerce growth in 2017; Ecom
Slide 9: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Strategy “KION 2027” 9 KION GROUP AG | FY 2017 Update Call | 1 March 2018 © 2018 KION GROUP AG. All rights reserved
Slide 10: FY 2017 Key Financials
FY 2017 Key Financials Continued strong profitable growth Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +36.8% +37.0% 9.6% 10.0% 7,979 7,654 5,833 5,587 +42.5% 766 537 +73.3% 426 246 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 − Negati
Slide 11: Q4 2017 Key Financials
Q4 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) +27.9% +13.7% 9.8% 10.3% 2,280 1,978 1,740 1,783 +19.0% >100% 171 204 82 196 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 Q4 2016 Q4 2017 − Negati
Slide 12: Industrial Trucks & Services
Industrial Trucks & Services Continued growth and slight margin improvement in FY 2017 Key financials Revenue by category Based on FY 2017 financials Order intake +8.8% +7.9% (in €m) 5,383 5,859 1,464 1,580 Services New business FY 2016 FY 2017 Q4 2016 Q4 2017 44% 56% +8.2% +8.2% Revenue 5,203 5,631
Slide 13: Supply Chain Solutions
Supply Chain Solutions First full year results of Dematic with margin improvement Key financials Revenue by category Based on FY 2017 financials Order intake (in €m) 2,099 693 Business 431 313 Services solutions 75% FY 2016 FY 2017 Q4 2016 Q4 2017 25% Revenue 2,006 291 413 366 (in €m) FY 2016 FY 201
Slide 14: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Net income increase includes one-time non-cash effect of US tax reform FY FY Q4 Q4 (in €m) 2017 2016 Change 2017 2016 Change Explanations Adjusted EBITDA 1.224 932 31.4% 325 278 17.2% − Non-recurring items result D&A 458 394 16.2% 122 106 14.3% mainly from expenses rela
Slide 15: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow supported by operating performance FY FY (in €m) 2017 2016 Change Explanations EBITDA 1,186 889 33.3% − Operating performance drives Change in Net Working Capital (NWC) -110 -29 <-100% strong free cash flow Taxes paid -136 -109 -25.4% Pension payments -28 -21
Slide 16: Net Debt
Net Debt Net debt and leverage significantly reduced Net debt as at 31 Dec 2017 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt significantly lowered by €808m compared to Dec 2016 1.7x1 2.3x2 3.2x2 as a result of capital increase in May 2017 97
Slide 17: Financing Structure
Financing Structure Maturity profile significantly improved Financing Structure as at 31 Dec 2016 Financing Structure as at 31 Dec 2017 (in €m) (in €m) 1,543 1,000 1,000 931 1851 350 212 746 237 27 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2017 2018 2019 2020 2021 2022 2023 2024 2025 20
Slide 18: IFRS Impact
IFRS Impact New IFRS accounting mainly results in balance sheet extension New IFRS accounting standards applied as of 1 Jan 2018 Estimated one-time impact − Changes in classification requirements without material impact on (in €m) Min Max Assets 25 35 IFRS 9 KION’s financial statements Equity 25 35
Slide 19: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Strategy “KION 2027” 19 KION GROUP AG | FY 2017 Update Call | 1 March 2018 © 2018 KION GROUP AG. All rights reserved
Slide 20: FY 2017 Outlook Comparison
FY 2017 Outlook Comparison Adjusted guidance achieved for all KPIs KION Group Industrial Trucks & Services Supply Chain Solutions Adj. Outlook1 Adj. Outlook1 Adj. Outlook1 (in €m) FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Order intake 7,550 – 7,900 7,979 ✓ 5,650 – 5,800 5,859 ✓ 1,900 – 2,100 2
Slide 21: FY 2018 Outlook
FY 2018 Outlook Profitable growth set to continue KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 Order intake 7,979 8,050 – 8,550 5,859 5,950 – 6,150 2,099 2,100 – 2,400 Revenue 7,654 7,700 – 8,200 5,631
Slide 22: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5. Strategy “KION 2027” 22 KION GROUP AG | FY 2017 Update Call | 1 March 2018 © 2018 KION GROUP AG. All rights reserved
Slide 23: Strategy KION 2027: New starting position following acquisition of Dematic
Strategy KION 2027 New starting position following acquisition of Dematic New starting position Dematic acquisition Updated strategy New governance Industrial Supply Chain Corporate Trucks & Solutions Services Services 23 KION GROUP AG | FY 2017 Update Call | 1 March 2018 © 2018 KION GROUP AG. All r
Slide 24: Strategy KION 2027: Strategy maintains aspiration for profitable growth
Strategy KION 2027 Strategy maintains aspiration for profitable growth Grow above the material handling market Growth Provide attractive return on capital for shareholders Capital Profitable Profita- efficiency growth bility Remain most profitable player in the industry Resilience Maintain profitabi
Slide 25: Strategy KION 2027: Strategic fields of action
Strategy KION 2027 Strategic fields of action set priorities to achieve aspiration We transform our business into the digital world. For customers we develop digital solutions to improve their intralogistics efficiency. Internally we digitalise our processes to improve our performance. We are leadin
Slide 26: Financial Calendar
Financial Calendar Date Event 6 March 2018 Capital Markets Day 26 April 2018 Quarterly statement for the period ended 31 Mar 2018 (Q1 2018) and analyst call 9 May 2018 Annual General Meeting 26 July 2018 Interim report for the period ended 30 Jun 2018 (Q2 2018) and analyst call 25 October 2018 Quart
Slide 27: 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