Slide 1: KION GROUP AG Q3 2018 Update Call
KION GROUP AG Q3 2018 Update Call Gordon Riske (CEO), Anke Groth (CFO) – Frankfurt, 25 October 2018
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | Q3 2018 Update Call | 25 October 2018 © 2018 KION GROUP AG. All rights reserved
Slide 3: Q3 2018 Strategic Highlights
Q3 2018 Strategic Highlights Further product introductions in line with KION 2027 strategy Dematic introduces robotics Linde Material Handling STILL first to release a solution for food distribution strengthens its offering tractor with a lifting function Complete Li-ion portfolio “Zone intellig
Slide 4: Q3 2018 Strategic Highlights: resilient business mix
Q3 2018 Strategic Highlights KION 2027 strategy innovations further broaden resilient business mix Broad industry mix Resilient service business Industrial Trucks and Services FY 20171 KION Group product mix FY 20173 Other industries 22% Logistics 17% Paper & print 3% Metals 11% Construction 6% Beve
Slide 5: Q3 2018 Financial Highlights
Q3 2018 Financial Highlights Continued strong order growth and solid earnings Outlook − Outlook for FY 2018 confirmed − Order intake grew by 11.5% to €2.1bn; revenue grew by 3.5% to €1.9bn in Q3 2018 − IT&S1 order intake increased by 7.6% to €1.5bn and revenue by 8.0% to €1.4bn Growth − SCS2 order i
Slide 6: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 6 KION GROUP AG | Q3 2018 Update Call | 25 October 2018 © 2018 KION GROUP AG. All rights reserved
Slide 7: Industrial Truck Market
Industrial Truck Market Global market maintains momentum Order intake unit growth y-o-y (in %) North America China Q4/17 Q1/18 Q2/18 Q3/18 Western Europe Q4/17 Q1/18 Q2/18 Q3/18 26.1% 19.2% 7.6% 2.9% Q4/17 Q1/18 Q2/18 Q3/18 35.0% 15.2% 30.4% 11.9% 11.6% 4.7% 19.4% 13.4% Eastern Europe Q4/17 Q1/18 Q2
Slide 8: Industrial Truck Market: KION continues to benefit from global growth
Industrial Truck Market KION continues to benefit from global growth Industrial trucks: Regional development Industrial trucks: Market by region Order intake (in ‘000 units) and growth y-o-y (in %) Order intake FY 2017 (in ‘000 units) Q1-Q3 2018 Q3 2018 Other 16% Western Market KION Market KION Sout
Slide 9: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 9 KION GROUP AG | Q3 2018 Update Call | 25 October 2018 © 2018 KION GROUP AG. All rights reserved
Slide 10: Q3 2018 Key Financials
Q3 2018 Key Financials Continued strong order momentum Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +11.5% +3.5% 10.7% 10.2% 2,060 1,832 1,896 1,847 -1.4% +21.8% 196 193 96 79 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 2017 Q3 2018 − Negative FX
Slide 11: Q1-Q3 2018 Key Financials
Q1-Q3 2018 Key Financials Revenue and margin impacted by headwinds Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +11.8% +2.4% 9.9% 9.3% 6,369 5,635 5,770 5,699 -3.6% 558 538 +9.0% 224 244 Q1-Q3 2017 Q1-Q3 2018 Q1-Q3 2017 Q1-Q3 2018 Q1-Q3 2017 Q1-Q3 2018 Q
Slide 12: Industrial Trucks & Services
Industrial Trucks & Services Countermeasures against supplier bottlenecks on track Key financials FX translation effect +4.8% +7.6% Order intake Q1-Q3 Q3 4,280 4,486 1,352 1,455 (in €m) 2018 20181 (in €m) Order intake -83 -22 Q1-Q3 2017 Q1-Q3 2018 Q3 2017 Q3 2018 Revenue -83 -23 Revenue +5.2% +8.0%
Slide 13: Supply Chain Solutions
Supply Chain Solutions Strong order momentum but continued under-utilisation Key financials FX translation effect +32.9% +21.5% Order intake Q1-Q3 Q3 1,406 1,869 (in €m) 2018 20181 (in €m) 493 598 Order intake -100 -1 Q1-Q3 2017 Q1-Q3 2018 Q3 2017 Q3 2018 Revenue -84 +8 Revenue -4.7% -8.4% Adjusted
Slide 14: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Net income increase from lower PPA items and non-recurring items Q1-Q3 Q1-Q3 Q3 Q3 (in €m) 2018 2017 Change 2018 2017 Change Explanations Adjusted EBITDA 1,098 1,091 0.6% 380 381 -0.3% − Operating performance D&A -560 -533 -5.1% -187 -186 -1.0% impacted by headwinds Adj
Slide 15: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow impacted by higher inventories and taxes Q1-Q3 Q1-Q3 (in €m) 2018 2017 Change Explanations EBITDA 1,095 1,062 3.1% − Increased inventories due to Change in Net Working Capital (NWC) -232 -256 9.3% delivery issues at selected Taxes paid -142 -70 <-100% IT&S sup
Slide 16: Net Debt
Net Debt Net debt increases due to temporary working capital financing 30 Sep 31 Dec (in €m) 2018 20173 Net debt development − Net debt increases due to Adjusted LTM EBITDA 1,502 1,496 temporary working capital Adjusted LTM industrial EBITDA1 1,187 1,195 financing requirements Net financial debt 2,2
Slide 17: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 17 KION GROUP AG | Q3 2018 Update Call | 25 October 2018 © 2018 KION GROUP AG. All rights reserved
Slide 18: FY 2018 Outlook
FY 2018 Outlook Outlook confirmed KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 20171 FY 2018 FY 20171 FY 2018 FY 20171 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 5,700 – 5,900
Slide 19: Financial Calendar
Financial Calendar Date Event Publication of 2018 annual report (FY 2018) 28 February 2019 Financial statements press conference and analyst call 25 April 2019 Quarterly statement for the period ended 31 Mar 2019 (Q1 2019) and analyst call 09 May 2019 Annual General Meeting Subject to change without
Slide 20: Key Financials by Quarter
Key Financials by Quarter FY 2017 restated due to the initial application of IFRS 15 and IFRS 16 Group figures Industrial Trucks & Services Supply Chain Solutions Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q3 Q2 Q1 Q4 Q3 Q2 Q1 (in €m) 2018 2018 2018 2017 2017 2017 2017 2018 2018 2018 2017 2017 2017 2
Slide 21: 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