Slide 1: KION Update Call Q1-Q3 2014
KION UPDATE CALL Q1-Q3 2014 Gordon Riske, CEO Thomas Toepfer, CFO Wiesbaden, 5 November 2014
Slide 2: Agenda
AGENDA 1 Highlights Q1-Q3 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 5 November 2014 | Q1-Q3 2014 Update Call 2
Slide 3: Q1-Q3 2014: Financial Highlights
Q1-Q3 2014: FINANCIAL HIGHLIGHTS Continued strong performance in softer macro environment Order intake continues to grow In Q3, revenue grows in all business areas – Q3: €1,142m up 9% on previous year – Q3: €1,139m up 5% on previous year – Q1-Q3: €3,566m up 8% compared to 2013 – Q1-Q3: €3,372m sligh
Slide 4: Q1-Q3 2014: KION Capital Market Highlights
Q1-Q3 2014: KION CAPITAL MARKET HIGHLIGHTS MDAX inclusion strengthens visibility of KION stock MDAX member since 22 September 2014 Recent changes and expected effects Inclusion of KION in MDAX became effective on 22 September 2014 Free float increases through recent KKR and Goldman Sachs sell-do
Slide 5: Q1-Q3 2014: Operational Highlights
Q1-Q3 2014: OPERATIONAL HIGHLIGHTS Innovations and services support ongoing growth momentum – KION unit growth in Q3 with 10.0% above world market growth of 6.4% Above market – KION shows double-digit growth in Western Europe, slightly below market growth in Q3 – KION outperforms markets in China an
Slide 6: Market Development: Global market is making steady progress
MARKET DEVELOPMENT Global market is making steady progress Global market order intake and growth Global market continues steady growth path Order Intake Growth y-o-y – Global orders increase by 6% in Q3 to order (in ´000 units) (in %) volume of 260,500 units 350 20% – E- and WH-trucks drive global g
Slide 7: Market Development: Europe and China continue to drive global growth
MARKET DEVELOPMENT Europe and China continue to drive global growth Order intake unit growth y-o-y (in %) North America Eastern Europe Q1/14 Q2/14 Q3/14 Q1/14 Q2/14 Q3/14 14.2% 2.3% 1.2% Western Europe -6.9% 9.5% 5.3% Q1/14 Q2/14 Q3/14 10.3% 14.0% 13.7% China Q1/14 Q2/14 Q3/14 17.7% 12.6% 6.7% South
Slide 8: Market Development – Western Europe
MARKET DEVELOPMENT – WESTERN EUROPE Solid upward trend Country markets pre- and post crisis (status as at 30 Sep 2014) Positive momentum continues Indexed LTM order units (LTM Jan. 2007=100) Recovery in core markets progressing 120 Replacement activity Germany supports solid demand levels U.K. 1
Slide 9: KION Performance: Strong order intake development in Q3
KION PERFORMANCE Strong order intake development in Q3 KION global orders Overall growth above market (in ´000 units) – Orders 10% above previous year in Q3 50 vs. market with growth of 6.4% +10.0% – High level of 35,300 units in Q3 2014 40 – Continued strong development in Europe & China 35.3 31.5
Slide 10: Regional Perspective
REGIONAL PERSPECTIVE KION stays ahead of market trend in Eastern Europe and China Regional development Western Europe Order intake unit growth y-o-y in % – Market: Replacements support ongoing growth Q1-Q3 2014 Q3 2014 – KION: Continued double digit growth trend Market KION Market KION Eastern Europ
Slide 11: Leading in Innovations
LEADING IN INNOVATIONS KION trucks with innovative drive technologies Li-ion Fuel cells Add picture? KION’s first warehouse trucks featuring Li-ion First prototypes developed in 2000 batteries in series production Since 2013, fleets equipped in warehouses Twice the energy storage capacity of
Slide 12: Leading in Services
LEADING IN SERVICES Service performance strengthens KION’s resilience KION service revenue growth Services show continuous growth (Service revenues in €m and y-o-y growth in %) – Strong growth in after-sales from service contracts, ad-hoc service and spare parts 7.9% 9.6% 8.5% – High growth rates al
Slide 13: Agenda
AGENDA 1 Highlights Q1-Q3 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 5 November 2014 | Q1-Q3 2014 Update Call 13
Slide 14: Key Financials Q1-Q3 2014
KEY FINANCIALS Q1-Q3 2014 All main KPIs above prior year Adjusted EBIT1 and Order intake Revenues margin (in %) Net income (in €m) +8.2% +1.7% 9.1% 9.2% FX effect: FX effect: €45m €40m 3,566 3,317 3,372 3,297 +2.6% 301 309 +45.9% 119 81 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 2013 2014 2013
Slide 15: Key Financials Q3 2014
KEY FINANCIALS Q3 2014 Adjusted EBIT margin increases to 9.8% Adjusted EBIT1 and Order intake Revenues margin (in %) Net income (in €m) 9.3% 9.8% +9.2% +5.2% FX effect: FX effect: €6m €4m 1,142 1,139 1,082 +11.3% 1,046 112 101 >100% 58 11 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 2014 Q3 2013 Q3 20
Slide 16: Order Intake
ORDER INTAKE Order intake growth driven by Europe and China KION global order intake1 Comments (in €m) – Order intake growth remains +9.2% strong in Q3, mainly in 1,205 1,193 1,196 1,228 Western Europe, Eastern 1,145 1,105 1,142 Europe and China 1,052 1,046 – Order backlog is €806m, 16% above year-e
Slide 17: Revenues
REVENUES Growth in new business and service revenues in Q3 Q1-Q3 2014: Revenue by product categories Q3 2014: Revenue by product categories (in €m) (in €m) +1.7% +5.2% New business Services New business Services -3.8% +8.7% +2.5% +8.5% 3,372 1,139 38 11 3,317 12 31 19 71 57 1,082 14 Q1-Q3 New After
Slide 18: Adjusted EBIT and EBITDA
ADJUSTED EBIT AND EBITDA Adjusted EBIT increase in Q3 driven by improved gross margin Adjusted EBIT1 and margin (in %) Comments (in €m) – Gross margin increase driven by 9.1% 9.2% 9.3% 9.8% new business product mix and 301 309 growth in services 112 – Increase in fixed costs Q1-Q3 101 2014 driven by
Slide 19: Adjusted EBIT to Net Income
ADJUSTED EBIT TO NET INCOME Strong underlying net income growth 1 Q3 Q3 Q1-Q3 Q1-Q3 Comments (in €m) Change Change 2014 2013 2014 2013 – NRI impacted by Adjusted EBIT1 112 101 11.3% 309 301 2.6% €32m impairment Non-recurring items (NRI) -37 -5 <-100% -47 -12 <-100% of 30% stake in Linde Hydraulics K
Slide 20: Free Cash Flow
FREE CASH FLOW Cash flow from operations shows strong improvement Q1-Q3 Q1-Q3 Comments (in €m) Change 2014 2013 EBITDA (excl. FS segment) 445 467 -4.8% – EBITDA 2014 includes negative €32m non- cash effect from LHY impairment, which is Change of TWC -138 -124 -11.8% reversed in the line “Other” Taxe
Slide 21: Net Debt
NET DEBT Leverage improves compared to previous quarter Net debt and leverage as at 30 September 2014 Net debt development (in €m) – Group net financial debt decreases by €56m from Q2 due to cash generation 1.3x1 3.0x2 – Leverage thereby improves compared 700 2,038 to previous quarter – Increase in
Slide 22: Agenda
AGENDA 1 Highlights Q1-Q3 2014 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 5 November 2014 | Q1-Q3 2014 Update Call 22
Slide 23: Outlook Confirmed
OUTLOOK CONFIRMED Profitable growth in 2014 Market KION Global market volumes are expected to Unlock the full potential of the Western moderately increase European and emerging markets in 2014 – Further stabilisation in Europe – Slight increase in order intake and – A sustained uptrend in North Amer
Slide 24: Financial Calendar
FINANCIAL CALENDAR Date Event Capital Markets Day 2 December 2014 In Mainz near Frankfurt, beginning at 10:30 am and finishing at around 16:30 pm Please register via ir@kiongroup.com 12 February 2015 Publication of preliminary results on the fiscal year 2014 (FY 2014) Financial statements press conf
Slide 25: KION Investment Highlights
KION INVESTMENT HIGHLIGHTS 1 Attractive market with growth profile above GDP 2 Global leader – strong home base and well positioned in growth markets 3 Technology leadership drives premium positioning and customer value 4 Robust integrated business model with high contribution from services 5 Profit
Slide 26: We Keep the World Moving
WE KEEP THE WORLD MOVING 5 November 2014 | Q1-Q3 2014 Update Call 26
Slide 27: Key Financial Figures by Quarter
KEY FINANCIAL FIGURES BY QUARTER Order intake1 Revenue1 (in €m) (in €m) 1,205 1,193 1,228 1,252 1,178 1,052 1,046 1,145 1,196 1,105 1,046 1,142 1,089 1,082 1,085 1,089 1,149 1,144 1,082 1,139 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 2012 2013 2012 2013 2013 2014 2013 2014 2013 201
Slide 28: Disclaimer
DISCLAIMER This document has been prepared by KION GROUP AG (the “Company”) solely for informational purposes. For the purposes of this notice, the presentation that follows shall mean and include the slides that follow, the oral presentation of the slides by the Company or any person on behalf of t