Slide 1: KION GROUP AG Q2 2024 Update Call
KION GROUP AG Q2 2024 Update Call Rob Smith (CEO), Christian Harm (CFO) Frankfurt, 31 July 2024
Slide 2: Agenda
Agenda 1. Summary Q2 2024 & Business Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 2 KION GROUP AG | Q2 2024 Update Call | 31 July 2024 | Classification: Public
Slide 3: Q2 2024 Key Financial Figures
Q2 2024 Key Financial Figures Year-on-year profitability improvements in both segments Order intake Revenue Adj. EBIT1 Free cash flow EPS €2.6bn €2.9bn €220m €137m €0.52 -8% yoy +1% yoy +15% yoy +€13 m yoy -4% yoy +8% qoq +1% qoq -3% qoq +€71 m qoq -37% qoq Margin of 7.7% +90bp yoy -20bp qoq Order i
Slide 4: Business Update Q2 2024
Business Update Q2 2024 KION leading in many areas 1 STILL wins IFOY1 Award with first series-produced 1 automated vehicle in the Mobile Robot Category 2 2 Dematic: EXV iGo Launch of Noise Reduction Portfolio to address loud 3 work environments 2 Financial Times names KION as one of Europe’s Climate
Slide 5: Agenda
Agenda 1. Summary Q2 2024 & Business Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 5 KION GROUP AG | Q2 2024 Update Call | 31 July 2024 | Classification: Public
Slide 6: ITS – Key Financials
ITS – Key Financials Q2 adjusted EBIT margin reflecting a higher share of APAC / WH equipment 1 Change Change (in €m) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 yoy qoq Order intake (in ‘000 units) 62.3 53.0 67.0 59.3 63.9 +3% +8% Order intake 2,001 1,757 2,176 1,804 1,966 -2% +9% Order book 3,604 3,36
Slide 7: SCS – Key Financials
SCS – Key Financials Continued sequential improvement in profitability 1 Change Change (in €m) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 yoy qoq Order intake2 881 892 779 642 677 -23% +6% Of which E-commerce (%)3 53% 7% 61% 38% 61% Order book2 2,823 3,024 2,921 2,778 2,732 -12% -2% Revenue 714 719 781
Slide 8: KION Group – Key Financials
KION Group – Key Financials Year-on-year profitability improvement driven by both operating segments 1 Change Change (in €m) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 yoy qoq Order intake2 2,872 2,641 2,936 2,439 2,640 -8% +8% Order book2 6,351 6,321 6,045 5,588 5,272 -21% -6% Revenue 2,836 2,730 3,08
Slide 9: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Goodwill impairment and NRI impacting net income Q2 Q3 Q4 Q1 Q2 Change Change (in €m) 2023 2023 2023 2024 2024 yoy qoq Comments Adj. EBITDA 436 463 460 474 474 +9% -0% 1 NRI mainly impacted by the D&A -244 -239 -241 -248 -254 -4% -2% conclusion of a multi-year legal Adj
Slide 10: Cash Flow Statement
Cash Flow Statement Triple-digit FCF driven by improved adj. EBIT despite high tax payments Free cash flow Q2 2024 Comments (in €m) -21 228 -92 161 149 2 31 1 D&A incl. €22m goodwill -95 3 4 137 impairment at KION ITS -41 1 4 Americas -92 -55 2 Relatively stable NWC: slight -51 increase at ITS almos
Slide 11: Net Debt
Net Debt Higher LTM adj. EBITDA leads to relatively stable leverage ratios Indebtedness and leverage1 ratios as at 30 June 2024 Comments (in €m) 2 1.8x 1 Marginal increase in net debt 2 despite positive FCF due to 3.357 €92m dividend pay-out in June 1.5x and the completion of 635 2.722 on-balance sh
Slide 12: Agenda
Agenda 1. Summary Q2 2024 & Business Update 2. Financial Update 3. Outlook 2024 & Key Takeaways 12 KION GROUP AG | Q2 2024 Update Call | 31 July 2024 | Classification: Public
Slide 13: Market recovery in both operating segments takes longer than expected
Market recovery in both operating segments takes longer than expected ITS Market (in units) to remain on prior year level (previously: slight growth) growth in APAC (unchanged) stronger than previously expected decline in Americas EMEA now expected flat (previously: slight growth) SCS Market (
Slide 14: FY 2024 Outlook
FY 2024 Outlook Good H1 provides confidence for FY 2024 outlook despite delayed market recovery KION Group Industrial Trucks & Services Supply Chain Solutions (in €m) Old Updated Old Updated Old Updated Revenue 11,200 – 12,000 11,300 – 11,700 8,500 – 9,000 8,500 – 8,700 2,700 – 3,000 2,800 – 3,000 c
Slide 15: Key Takeaways
Key Takeaways Solid financial performance KION improved adj. EBIT and adj. EBIT margin in Q2 2024 y/y in both operating segments Market recovery takes longer than expected ITS market to remain on prior year level in units (growth in APAC offset by stronger than expected decline in Americas while
Slide 16: Q & A Session
Q & A Session 16 KION GROUP AG | Q2 2024 Update Call | 31 July 2024 | Classification: Public
Slide 17: Appendix
Appendix 17 KION GROUP AG | Q2 2024 Update Call | 31 July 2024 | Classification: Public
Slide 18: FY 2024 Assumptions for specified FY 2024 Outlook
FY 2024 Assumptions for specified FY 2024 Outlook Anticipated market recovery slightly delayed in both market segments Global Growth expectations of 3.2% (IMF as of 16 July 2024) developed countries 1.7% (Euro area 0.9%, US 2.6%) emerging countries 4.3% (China 5.0%) Assumptions for major currenc
Slide 19: FY 2024 Expectation – Housekeeping Items
FY 2024 Expectation – Housekeeping Items Non-recurring items1 Operating Capex2 … between -€10m to -€20m … between -€400m to -€450m PPA R&D spending3 … around -€110m to -€115m … around 3% of group revenue (vs -€90m to -€95m before, due to KION ITS Americas goodwill impairment) Net financial expenses
Slide 20: FY 2024 – Change in Presentation of SCS Customer Service Business
FY 2024 – Change in Presentation of SCS Customer Service Business SCS following the ITS methodology Starting in FY 2024, SCS Customer Service business will be aligned with methodology applied in ITS SCS Customer Services order intake will exclude Modernizations & Upgrades and will equal revenue
Slide 21: Key Financials
Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions Q2 Q1 FY Q4 Q3 Q2 Q1 Q2 Q1 FY Q4 Q3 Q2 Q1 Q2 Q1 FY Q4 Q3 Q2 Q1 (in €m) 2024 2024 2023 2023 2023 2023 2023 2024 2024 2023 2023 2023 2023 2023 2024 2024 2023 2023 2023 2023 2023 Order intake1 2,640 2,439 10,850 2,936 2,64
Slide 22: Leverage Development and Maturity Profile
Leverage Development and Maturity Profile Leverage ratios stabilized in Q2 2024 Leverage development1,2 Maturity profile and free liquidity as at 30 June 2024 (in €m) 4,0x 4,0 3.2x 3,5 1,630 2.8x 2,8x 3,0 3 2.5x 2.4x 270 1.500 2.4x 2,3x 2.7x 2,5 2.0x 1.9x 1,8x 2,0 1.6x 1,6x 1.9x 1.5x 1.000 1.4x 1,4x
Slide 23: ITS Order Intake
ITS Order Intake Share of electrified products at 91% in Q2 2024 Development of KION ITS segment Change Order intake Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Change yoy Change qoq FY 2020 FY 2021 FY 2022 FY 2023 yoy Order intake (in ‘000 units) 62.3 53.0 67.0 59.3 63.9 +3% +8% 198.3 299.4 268.2 241.7
Slide 24: Industrial Truck Market and ITS Order Intake
Industrial Truck Market and ITS Order Intake KION global market share on PY level yoy in Q1 24 Industrial Truck Market1 Development of KION ITS segment Regional Region growth Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 (Change in units yoy) (Change in unit
Slide 25: Financial Calendar
Financial Calendar Date Event 04 September 2024 KION @ Jefferies Industrial Conference, New York, USA 04 September 2024 KION @ Commerzbank and ODDO BHF Corporate Conference, Frankfurt, Germany 06 September 2024 KION @ Morgan Stanley Industrial CEOs Unplugged, London, UK 12 September 2024 KION @ UBS
Slide 26: Disclaimer
Disclaimer This document has been prepared by KION GROUP AG (the “Company”, and together with its consolidated subsidiaries, the "KION Group") solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral p