Slide 1: KION GROUP AG Q2 2018 Update Call
KION GROUP AG Q2 2018 Update Call Gordon Riske (CEO), Anke Groth (CFO) – Frankfurt, 26 July 2018
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | Q2 2018 Update Call | 26 July 2018 © 2018 KION GROUP AG. All rights reserved
Slide 3: Q2 2018 Strategic Highlights
Q2 2018 Strategic Highlights Continued implementation of strategy KION 2027 Continued innovation in Clear positioning as solutions New CDO position under- solutions and services provider at tradeshows lines strong digital focus New award-winning STILL RX20 E-truck family New Dematic robotic piece pi
Slide 4: Q2 2018 Financial Highlights
Q2 2018 Financial Highlights KION confirms positive trend with a sharp rise in orders Outlook − Outlook for FY 2018 confirmed − Order intake grew strongly by 23.0% to €2.4bn; revenue grew by 1.5% to €2.0bn in Q2 2018 − IT&S1 order intake increased by 2.2% to €1.5bn and revenue by 3.7% to €1.4bn Grow
Slide 5: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5 KION GROUP AG | Q2 2018 Update Call | 26 July 2018 © 2018 KION GROUP AG. All rights reserved
Slide 6: Industrial Truck Market
Industrial Truck Market Global market maintains momentum Order intake unit growth y-o-y (in %) North America China Q3/17 Q4/17 Q1/18 Q2/18 Western Europe Q3/17 Q4/17 Q1/18 Q2/18 -0.9% 26.1% 19.2% 7.6% Q3/17 Q4/17 Q1/18 Q2/18 39.0% 35.0% 15.2% 30.4% 8.9% 11.6% 4.7% 19.4% Eastern Europe Q3/17 Q4/17 Q1
Slide 7: Industrial Truck Market
Industrial Truck Market KION continues to benefit from strong global market 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) H1 2018 Q2 2018 Other 16% Western Market KION Market KION
Slide 8: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 8 KION GROUP AG | Q2 2018 Update Call | 26 July 2018 © 2018 KION GROUP AG. All rights reserved
Slide 9: Q2 2018 Key Financials
Q2 2018 Key Financials SCS business boosts quarterly order intake Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +23.0% +1.5% 10.5% 9.2% 2,424 2,001 2,031 1,971 -11.2% -24.6% 210 187 105 79 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 −
Slide 10: H1 2018 Key Financials
H1 2018 Key Financials Growth and margin hampered by headwinds Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +11.9% +1.9% 9.5% 8.9% 4,309 3,802 3,874 3,852 -4.7% +2.1% 362 345 145 148 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 − Negat
Slide 11: Industrial Trucks & Services
Industrial Trucks & Services Headwinds weigh on margin Key financials FX translation effect +3.5% +2.2% Order intake H1 Q2 2,928 3,032 1,514 1,546 (in €m) 2018 20181 (in €m) Order intake -61 -29 H1 2017 H1 2018 Q2 2017 Q2 2018 Revenue -59 -29 Revenue +3.9% +3.7% Adjusted EBIT -2 -1 2,712 2,818 1,398
Slide 12: Supply Chain Solutions
Supply Chain Solutions Boost in orders underlines Dematic’s leading position Key financials FX translation effect +39.0% +93.3% Order intake H1 Q2 1,270 (in €m) 2018 20181 (in €m) 914 452 874 Order intake -99 -57 H1 2017 H1 2018 Q2 2017 Q2 2018 Revenue -92 -39 Revenue -3.0% -3.5% Adjusted EBIT -13 -
Slide 13: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Net income impacted mainly by operating headwinds H1 H1 Q2 Q2 (in €m) 2018 2017 Change 2018 2017 Change Explanations Adjusted EBITDA 718 710 1.1% 377 388 -2.8% − Operating performance D&A 373 348 7.3% 190 177 7.2% impacted by headwinds Adjusted EBIT 345 362 -4.7% 187 21
Slide 14: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow impacted by temporary working capital increase H1 H1 (in €m) 2018 2017 Change Explanations EBITDA 716 694 3.1% − Increased inventories due to Change in Net Working Capital (NWC) -196 -97 <-100% delivery issues at selected Taxes paid -91 -54 -69.3% suppliers Pe
Slide 15: Net Debt
Net Debt Slight increase in debt from financing of net working capital 30 Jun 31 Mar 31 Dec (in €m) 2018 20183 20173 Net debt development − Adjusted definition of industrial Adjusted LTM EBITDA 1,504 1,515 1,496 net operating debt following IFRS Adjusted LTM industrial EBITDA1 1,183 1,207 1,195 chan
Slide 16: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 16 KION GROUP AG | Q2 2018 Update Call | 26 July 2018 © 2018 KION GROUP AG. All rights reserved
Slide 17: 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 18: Financial Calendar
Financial Calendar Date Event 25 October 2018 Quarterly statement for the period ended 30 Sep 2018 (Q3 2018) and analyst call 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
Slide 19: 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 Q2 Q1 Q4 Q3 Q2 Q1 Q2 Q1 Q4 Q3 Q2 Q1 Q2 Q1 Q4 Q3 Q2 Q1 (in €m) 2018 2018 2017 2017 (in €m) 2017 2017 2018 2018 2017 2017 (in €m) 2017 2017
Slide 20: 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