Kion Group Ag · XETR:KGX
Kion — Q2 2015 Earnings Presentation
24 slides from Kion's earnings presentation, Aug 6, 2015
Slide 1: KION GROUP AG Update Call Q2 2015
KION GROUP AG Update Call Q2 2015 Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Wiesbaden, 6 August 2015
Slide 2: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 2 KION GROUP AG Update Call Q2 2015 | 6 Aug 2015 © 2015 KION GROUP AG. All rights reserved
Slide 3: Financial Highlights H1 (Q2) 2015
Financial Highlights H1 (Q2) 2015 On course for a successful year following strong Q2 results − Order intake value rises by 8.2% to €2,565m in H1 2015 (Q2: €1,317m, +9.3% y-o-y) − Overall unit growth above market, driven by Western Europe and China − Healthy order book at €928m − Revenues grow by 8.
Slide 4: Strategy 2020 Highlights Q2 2015
Strategy 2020 Highlights Q2 2015 Implementation track record continues Multi-brand Continued focus on automation solutions strategy & − Egemin closing well under way, will be completed shortly Innovation − Linde introduces automated WH-trucks under Linde-Matic series − STILL wins second IFOY1 award
Slide 5: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 5 KION GROUP AG Update Call Q2 2015 | 6 Aug 2015 © 2015 KION GROUP AG. All rights reserved
Slide 6: Market Development: Global market continues growth at slower pace
Market Development Global market continues growth at slower pace Global market order intake − Sustained order growth of 2.8% in Q2 Order intake Growth y-o-y − High order volume of 292,000 units (in ´000 units) (in %) 350 +2.8% 20 − Global development reflects weak activity in big 292 emerging market
Slide 7: Market Development: Mature markets stay strong, emerging markets struggle
Market Development Mature markets stay strong, emerging markets struggle Order intake unit growth y-o-y (in %) North America Eastern Europe Q4/14 Q1/15 Q2/15 Q4/14 Q1/15 Q2/15 18.9% 8.7% 14.0% Western Europe -9.8% -10.4% -17.3% Q4/14 Q1/15 Q2/15 8.3% 16.9% 8.6% China Q4/14 Q1/15 Q2/15 South/Central
Slide 8: Market Development: Good development across Western European markets
Market Development Good development across Western European markets Markets pre- and post-crisis (status as at 30 Jun 2015) − Ongoing healthy Indexed LTM order units (LTM Jan 2007=100) activity 120 Germany − Good momentum in UK Germany, UK and France 100 France − Italy and Spain continue 80 Italy to
Slide 9: KION Development: Strong demand momentum continues
KION Development Strong demand momentum continues KION global order intake − KION accelerates ahead of global market in Q2 Order intake Growth y-o-y − Orders are 7.6% above previous year in Q2 vs. (in ´000 units) (in %) +7.6% market growth of 2.8% 50 20 43.8 − Second highest quarterly order level of
Slide 10: KION Development: Growth in Western Europe and China
KION Development KION stays on growth path in Western Europe and China Regional development Western Europe Order intake unit growth y-o-y (in %) − Market: Normalization, good momentum H1 2015 Q2 2015 − KION: Above market growth in Q2 Market KION Market KION Eastern Europe Western 12.7% 10.6% 8.6% 9.
Slide 11: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 11 KION GROUP AG Update Call Q2 2015 | 6 Aug 2015 © 2015 KION GROUP AG. All rights reserved
Slide 12: Key Financials H1 2015
Key Financials H1 2015 Continued momentum with margin close to previous year Order intake Revenues Adjusted EBIT1 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +8.2% +8.4% 8.8% 8.7% 2,565 2,421 2,372 2,233 +6.6% +55.7% 197 210 94 61 H1 H1 H1 H1 H1 H1 H1 H1 2014 2015 2014 2015 2014 2015
Slide 13: Key Financials Q2 2015
Key Financials Q2 2015 Operational margin improvement offset by adverse court ruling Order intake Revenues Adjusted EBIT1 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +9.3% +9.8% 9.6% 9.3% 1,317 1,256 1,205 1,144 +6.3% 109 116 +60.0% 52 33 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2014 2015 2014 2015 20
Slide 14: Revenues: Strong growth contribution from new business
Revenues Strong growth contribution from new business H1: Revenue bridge by product categories Q2: Revenue bridge by product categories (in €m and growth y-o-y in %) (in €m and growth y-o-y in %) +8.4% +9.8% New business Services New business Services +10.5% +5.9% +13.2% +5.7% 2,421 1,256 20 -7 9 -7
Slide 15: Adjusted EBIT and EBITDA
Adjusted EBIT and EBITDA Margins reflect implementation costs for Strategy 2020 Adjusted EBIT1 − Gross margin increase driven by (in €m and margin in %) new business growth, supported by product mix and lower 8.8% 8.7% 9.6% 9.3% commodity prices 197 210 − Increase in fixed costs driven by 109 116 wa
Slide 16: Adjusted EBIT to Net Income
Adjusted EBIT to Net Income Net income growth driven by improved financing H1 H1 Q2 Q2 (in €m) 2015 2014 Change 2015 2014 Change − Financial result Adjusted EBIT1 210 197 6.6% 116 109 6.3% benefits from sustainable interest Non-recurring items -15 -9 -54.2% -10 -5 <-100% reduction after KION acquisi
Slide 17: Free Cash Flow Statement
Free Cash Flow Statement Growth supported by higher TWC and rental capex H1 H1 (in €m) 2015 2014 Change − EBITDA excludes FS segment with €44m EBITDA (excl. FS segment) 331 310 6.7% EBITDA in H1, included in leasing CF Change of TWC -166 -96 -72.5% − Increased trade working capital (TWC) and Taxes p
Slide 18: Financing Structure
Financing Structure Stable financing structure since refinancing in April 2014 Maturity profile as at 30 Jun 2015 Positive ratings action in April 2015 (in €m) − Standard & Poor’s: BB+ with stable outlook 1,045 − Moody’s: Ba2 with positive outlook Last pre-IPO bond callable in February 2016 − Remain
Slide 19: Net Debt
Net Debt Slight seasonal increase of net debt Net debt as at 30 Jun 2015 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt increases slightly by €30m from March 2015 1.1x1 1.7x2 2.8x2 − Net financial and industrial net 738 1,974 operating leverag
Slide 20: Pension Liabilities
Pension Liabilities Decrease in net pension liabilities driven by discount rate Net pension liabilities as at 30 Jun 2015 Net pension liabilities mostly Net pension liabilities Discount rate driven by German plans (in €m) (in %) − Large UK plans are fully funded, 1,000 926 7 with offsetting pension
Slide 21: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 21 KION GROUP AG Update Call Q2 2015 | 6 Aug 2015 © 2015 KION GROUP AG. All rights reserved
Slide 22: Outlook FY 2015
Outlook FY 2015 Outlook confirmed based on positive performance in H1 2015 Market KION Further moderate increase in the worldwide Growth underpinned by service in Western market volume in 2015 Europe and emerging markets − Stabilisation in Western Europe with sustained − Slightly higher order intake
Slide 23: Financial Calendar
Financial Calendar Date Event 5 November 2015 Interim report for the period ended 30 September 2015 (Q3 2015) Financial statements press conference 17 March 2016 Publication of 2015 annual report (FY 2015) 4 May 2016 Interim report for the period ended 31 March 2016 (Q1 2016) 12 May 2016 Annual Gene
Slide 24: 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