Kion Group Ag · XETR:KGX

Kion — FY2018 Earnings Presentation

23 slides from Kion's earnings presentation, Feb 28, 2019

  1. Slide 1: KION GROUP AG FY 2018 Update Call

    KION GROUP AG FY 2018 Update Call Gordon Riske (CEO), Anke Groth (CFO) – Frankfurt, 28 February 2019

  2. Slide 2: Agenda

    Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | FY 2018 Update Call | 28 February 2019 © 2019 KION GROUP AG. All rights reserved

  3. Slide 3: FY 2018 Financial Highlights

    FY 2018 Financial Highlights KION sees strong finish to the year and fully meets outlook Order intake Revenue Adj. EBIT1 Free cash flow Dividend per share €8.7bn €8.0bn €790m €520m €1.20 +8.5% y-o-y +5.2% y-o-y Margin of 9.9% in +€46m y-o-y +21.2% y-o-y, FY 2018 35% payout ratio2 Outlook for FY 2018

  4. Slide 4: FY 2018 Strategic Highlights

    FY 2018 Strategic Highlights Significant progress in implementing KION 2027 strategy − Enhanced digital fleet management − Go-live of KION Digital Campus − Complete Li-Ion truck − New Dematic piece portfolio picking robot − Strategic partnership − Launch of Dematic with EP Equipment iQ InSights soft

  5. Slide 5: Agenda

    Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5 KION GROUP AG | FY 2018 Update Call | 28 February 2019 © 2019 KION GROUP AG. All rights reserved

  6. Slide 6: Industrial Truck Market: Double digit order growth in FY 2018

    Industrial Truck Market Double digit order growth in FY 2018 Order intake unit growth y-o-y (in %) North America China Q1/18 Q2/18 Q3/18 Q4/18 FY18 Western Europe Q1/18 Q2/18 Q3/18 Q4/18 FY18 19.2% 7.6% 2.9% -9.5% +4.0% Q1/18 Q2/18 Q3/18 Q4/18 FY18 15.2% 30.4% 11.9% 3.2% +15.2% 4.7% 19.4% 13.4% 4.0%

  7. Slide 7: Industrial Truck Market: KION ends a successful year with a good Q4

    Industrial Truck Market KION ends a successful year with a good Q4 Industrial trucks: Regional development Industrial trucks: Market by region Order intake (in ‘000 units) and growth y-o-y (in %) Order intake FY 2018 (in ‘000 units) FY 2018 Q4 2018 South/ Market KION Market KION Central Other 10% We

  8. Slide 8: Supply Chain Solutions Market: Growth drivers and trends remain intact

    Supply Chain Solutions Market Growth drivers and trends remain intact Market growth drivers Growth indicators 2018 E-commerce +9% Global warehouse capex1 Automation +14% Global e-commerce growth2 Digitalization 1. Projected capital expenditure growth for warehousing equipment and technology in 2018;

  9. Slide 9: Agenda

    Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 9 KION GROUP AG | FY 2018 Update Call | 28 February 2019 © 2019 KION GROUP AG. All rights reserved

  10. Slide 10: FY 2018 Key Financials

    FY 2018 Key Financials Good growth momentum and solid margin despite headwinds Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +8.5% +5.2% 10.2% 9.9% 7,979 8,657 7,598 7,996 +1.6% -4.9% 777 790 423 402 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017 FY 2018 FY 2017

  11. Slide 11: Q4 2018 Key Financials

    Q4 2018 Key Financials Strong finish to the year Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +13.3% 11.2% 11.3% +0.3% 2,280 2,287 2,225 1,963 +14.8% -20.6% 220 252 199 158 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 Q4 2017 Q4 2018 − Negative FX tra

  12. Slide 12: Industrial Trucks & Services

    Industrial Trucks & Services Good growth momentum and continued supplier bottlenecks Key financials FX translation effect +6.0% +9.2% Order intake FY Q4 5,860 6,211 1,580 1,724 (in €m) 2018 20181 (in €m) Order intake -99 -15 FY 2017 FY 2018 Q4 2017 Q4 2018 Revenue -98 -15 Revenue +6.3% +9.0% Adjuste

  13. Slide 13: Supply Chain Solutions

    Supply Chain Solutions Significant revenue growth and margin expansion in Q4 2018 Key financials FX translation effect +15.5% -19.7% Order intake FY Q4 2,099 2,425 (in €m) 2018 20181 (in €m) 693 556 Order intake -88 +12 FY 2017 FY 2018 Q4 2017 Q4 2018 Revenue -76 +7 Revenue +2.3% +29.4% Adjusted EBI

  14. Slide 14: Adjusted EBITDA to Net Income

    Adjusted EBITDA to Net Income Significant pro-forma EPS increase FY FY Q4 Q4 (in €m) 2018 2017 Change 2018 2017 Change Description Adjusted EBITDA 1,555 1,496 4.0% 457 405 12.9% − NRIs relate to Dematic integra- D&A -765 -718 -205 -185 tion and redirection of IT&S sales activities in South Africa Ad

  15. Slide 15: Free Cash Flow Statement

    Free Cash Flow Statement Free cash flow supported by EBITDA increase FY FY (in €m) 2018 2017 Change Description Reported EBITDA 1,541 1,458 5.7% − EBITDA driven by operating Change in Net Working Capital (NWC) -54 -113 -52.1% performance Taxes paid -193 -136 -41.7% Pension payments -37 -28 -32.5% −

  16. Slide 16: Net Debt

    Net Debt Continued reduction of net debt and leverage 31 Dec 31 Dec (in €m) 2018 20173 Description Adjusted EBITDA 1,555 1,496 – Net debt lowered through Adjusted industrial EBITDA1 1,234 1,195 continued deleveraging from FCF Net financial debt 1,870 2,096 Liabilities from procurement leases 421 369

  17. Slide 17: Agenda

    Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 17 KION GROUP AG | FY 2018 Update Call | 28 February 2019 © 2019 KION GROUP AG. All rights reserved

  18. Slide 18: FY 2018 Outlook Comparison

    FY 2018 Outlook Comparison Guidance achieved for all KPIs KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 Order intake 8,050 – 8,550 8,657 ✓ 5,950 – 6,150 6,211 ✓ 2,100 – 2,400 2,425 ✓ Revenue 7,700 – 8,20

  19. Slide 19: FY 2019 Outlook

    FY 2019 Outlook Investing into strategic fields of action for continued profitable growth KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 Order intake 8,657 8,250 – 8,950 6,211 6,250 – 6,450 2,425 2,000 –

  20. Slide 20: KION 2027

    KION 2027 Strategy and mid-term targets aim at profitable growth Mid-term targets Aspiration KION 2027 Growth €10bn revenue by 2022, growing Capital Profitable Profita- €10bn above material handling market efficiency growth bility Profitable growth with adj. EBIT 10-12% margin in the double-digit ra

  21. Slide 21: Financial Calendar

    Financial Calendar Date Event 13 March 2019 Analyst Day 25 April 2019 Quarterly statement for the period ended 31 Mar 2019 (Q1 2019) and analyst call 09 May 2019 Annual General Meeting 25 July 2019 Interim report for the period ended 30 Jun 2019 (Q2 2019) and analyst call 24 October 2019 Quarterly s

  22. Slide 22: Key Financials

    Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 (in €m) 2018 2018 2018 2018 2018 2017 2017 2018 2018 2018 2018 2018 2017 2017 2018 2018 2018 2018 2018 2017 2017 Order intake 8,657 2,287 2,060 2,424 1,885

  23. Slide 23: 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

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