Slide 1: Leasing Business Deep Dive Update FY 2023
Leasing Business Deep Dive Update FY 2023 Frankfurt/Main, March 2024
Slide 2: 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
Slide 3: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 3 KION GROUP AG | Leasing Business Deep Dive | Update FY 2023 | Classification: Public
Slide 4: Integrated Business Model within Industrial Trucks and Services
Integrated Business Model within Industrial Trucks and Services Leasing is an important component growing the business • Technology and innovation • Sales support vehicle with New truck sales Financial services leadership benefit for aftermarket and Around half of new • Tailor-made solutions and ser
Slide 5: Leasing and Rental Strategy
Leasing and Rental Strategy Integrated approach to drive profitable growth • Full support of life cycle management (LTR1, STR2, service, used trucks) • Serve customers’ needs • Strong customer focus to optimized • Full integration into Profit & penetration and retention regional sales structures Res
Slide 6: Lease Accounting – KION's Leasing and Rental Business
Lease Accounting – KION’s Leasing and Rental Business Contract and financing structure overview Rental business (Short-Term) Leasing business (Long-Term) Direct business Indirect business Refinancing KION Customer partner Sale Lease contract Vendor contract Financial Lease KION Customer liability co
Slide 7: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 7 KION GROUP AG | Leasing Business Deep Dive | Update FY 2023 | Classification: Public
Slide 8: Funding Structure of Leasing & Short-Term Rental Business
Funding Structure of Leasing & Short-Term Rental Business Increasing share of ABS / RCF optimizing funding condition Maturity Matched Interest Instrument Balance Sheet Position in €m1 Funding Matched Funding 1,503 ABS 1,362 (Asset-backed securities) 1,161 1,673 SALB 1,499 (Sale-and-Leaseback) 1,594
Slide 9: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 9 KION GROUP AG | Leasing Business Deep Dive | Update FY 2023 | Classification: Public
Slide 10: Risk Management Categories
Risk Management Categories All risk categories are actively managed and mitigated • Conservative residual value strategy in place since FY 2001 Residual Value • LTR1 residual values allow for attractive profit margins in our used truck business Risk • KION has never recorded significant aggregated r
Slide 11: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 11 KION GROUP AG | Leasing Business Deep Dive | Update FY 2023 | Classification: Public
Slide 12: Lease Accounting – Balance Sheet
Lease Accounting – Balance Sheet Increase in (lease) liabilities resulting from growth of leasing business Overview • Many of KION Group’s balance sheet items are related to leasing business, especially: • Leased assets • Rental assets • Lease receivables • Liabilities from lease business • Liabilit
Slide 13: Lease Accounting – Balance Sheet: Direct leasing drives balance sheet
Lease Accounting – Balance Sheet Direct leasing business drives KION’s balance sheet Leasing and rental balances as at Dec 31, 2023 (2022) Direct vs. indirect leasing as at Dec 31, 2023 (2022) Leasing business Leased assets Leased assets Liabilities from lease €1,454.9m (€1,367.7m) (Operating lease)
Slide 14: Lease Accounting – Income Statement
Lease Accounting – Income Statement Leasing business contributes 14% to total KION Revenue Leasing (FL) = €989m (2022: €726m) Leasing (OL) = €575m (2022: €560m) Rental (OL) = €589m (2022: €546m) Leasing & Rental business accounts for 19% of total KION Revenue and 25% of total ITS Revenue Leasing
Slide 15: Lease Accounting – Income Statement: Finance vs. Operating Lease
Lease Accounting – Income Statement Timely recognition of income differs between Finance and Operating Lease FY 2023 LTR1 (FL) LTR1 (OL) STR2 (OL) Finance Lease (FL) vs. Operating Lease (OL) New Rental Rental Business line (In-) direct leasing business classified as a Finance Lease business busine
Slide 16: Lease Accounting – Cash Flow Statement
Lease Accounting – Cash Flow Statement Leasing business is operating cash flow accretive Understanding the cash flow statement KION’s leasing business is presented as operating cash flow 1. EBIT is the basis for the (indirect) calculation of the operating cash flow (OCF) incl. EBIT from leasing & re
Slide 17: Agenda
Agenda 1. Business Model and Strategy 2. Funding 3. Risk Management 4. Lease Accounting & Reporting 5. Key takeaways 17 KION GROUP AG | Leasing Business Deep Dive | Update FY 2023 | Classification: Public
Slide 18: Leasing Business Deep Dive Key takeaways
Leasing Business Deep Dive Key takeaways 1. Leasing business is an important component of the integrated ITS business model 2. Well managed risk profile with resilient income streams 3. Optimized refinancing structure supports competitive funding costs 4. Leasing operations are EBIT and operating ca
Slide 19: GRO U P
GRO U P
Slide 20: Investor Relations Contacts
Investor Relations Contacts Sebastian Ubert Vice President Investor Relations Phone: +49 (0)69 20110 - 7329 sebastian.ubert@kiongroup.com Kathrin Böck Professional Investor Relations / Corporate Access Phone: +49 (0)69 20110 - 7946 kathrin.boeck@kiongroup.com Raj Junginger Senior Manager Investor Re