Kion Group Ag · XETR:KGX
Kion — Q3 2015 Earnings Presentation
23 slides from Kion's earnings presentation, Nov 5, 2015
Slide 1: KION GROUP AG Update Call Q3 2015
KION GROUP AG Update Call Q3 2015 Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Wiesbaden, 5 November 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 Q3 2015 | 5 Nov 2015 © 2015 KION GROUP AG. All rights reserved
Slide 3: Financial Highlights Q1-Q3 (Q3) 2015
Financial Highlights Q1-Q3 (Q3) 2015 KION delivers solid growth in Q3 despite weaker global market − Order intake value rises by 9.5% to €3,819m in Q1-Q3 (Q3: €1,253m, +12.3% y-o-y) − Overall unit growth above market, driven mainly by Western Europe − In China, KION again outperforms the weak market
Slide 4: Strategy 2020 Highlights Q3 2015
Strategy 2020 Highlights Q3 2015 Implementation track record continues Global module/ New CTO organisation defined and strengthened platform strategy − Following start of Dr Eike Böhm as CTO in August 2015 − Technical teams now under one central management − Centralised organisation to drive efficie
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 Q3 2015 | 5 Nov 2015 © 2015 KION GROUP AG. All rights reserved
Slide 6: Market Development: Weakness in emerging markets weighs on global demand
Market Development Weakness in emerging markets weighs on global demand Global market order intake − Global demand declines by 2.3% in Q3, and Order intake Growth y-o-y shows growth of 1.6% in Q1-Q3 (in ’000 units) (in %) − Solid order volume of 254,000 units in Q3 350 20 -2.3% − Continued good prog
Slide 7: Market Development: Developed markets stay strong, emerging markets struggle
Market Development Developed markets stay strong, emerging markets struggle Order intake unit growth y-o-y (in %) North America Eastern Europe Q1/15 Q2/15 Q3/15 Q1/15 Q2/15 Q3/15 8.7% 14.0% 9.7% Western Europe -10.4% -17.3% -8.5% Q1/15 Q2/15 Q3/15 16.9% 8.6% 6.2% China Q1/15 Q2/15 Q3/15 South/Centra
Slide 8: Market Development: Western European markets sustain upward trend
Market Development Western European markets sustain upward trend Markets pre- and post-crisis (status as at 30 Sep 2015) − Broad-based healthy Indexed LTM order units (LTM Jan 2007=100) activity UK Germany − Good momentum in 120 Germany, UK and France 100 France − Italy and Spain continue 80 Italy t
Slide 9: KION continues to strengthen global market position
KION Development KION continues to strengthen global market position KION global order intake − KION again outperforms global market in Q3 Order intake Growth y-o-y − Orders are 4.6% above previous year in Q3 (in ’000 units) (in %) +4.6% vs. market decline of 2.3% 50 20 − Benefitting from continued
Slide 10: Better than market across regions, headwinds in China
KION Development Better than market across regions, headwinds in China Regional development Western Europe Order intake unit growth y-o-y (in %) – Market: Solid momentum, normalisation Q1-Q3 2015 Q3 2015 – KION: Above market growth again in Q3 Market KION Market KION Eastern Europe Western 10.7% 9.8
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 Q3 2015 | 5 Nov 2015 © 2015 KION GROUP AG. All rights reserved
Slide 12: Key Financials Q1-Q3 2015
Key Financials Q1-Q3 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) +9.5% +8.4% 9.2% 9.1% 3,819 3,657 3,488 3,372 +7.2% 309 331 +21.2% 119 144 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 2
Slide 13: Key Financials Q3 2015
Key Financials Q3 2015 Adjusted EBIT margin at previous-year level Order intake Revenues Adjusted EBIT1 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +12.3% +8.6% 9.8% 9.8% 1,253 1,236 1,116 1,139 +8.4% 112 121 -14.7% 58 49 Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 2014 2015 2014 2015 2014 2015 2014 2015
Slide 14: Revenues: Growth contribution from both new business and services
Revenues Growth contribution from both new business and services Q1-Q3: Revenue bridge by product categories Q3: Revenue bridge by product categories (in €m and growth y-o-y in %) (in €m and growth y-o-y in %) +8.4% +8.6% New business Services New business Services +9.9% +6.8% +8.6% +8.5% 3,657 1,23
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, lower commodity 8.8% 9.2% 8.7% 9.1% 9.6% 9.8% 9.3% 9.8% prices and FX-effects 309 331 − Increase in
Slide 16: Adjusted EBIT to Net Income
Adjusted EBIT to Net Income Net income year-to-date driven by operating performance Q1-Q3 Q1-Q3 Q3 Q3 (in €m) 2015 2014 Change 2015 2014 Change − Q3 2014 impacted by Adjusted EBIT1 331 309 7.2% 121 112 8.4% Linde Hydraulics one-offs in non- Non-recurring items -20 -47 56.4% -6 -37 84.4% recurring it
Slide 17: Free Cash Flow Statement
Free Cash Flow Statement Strong cash generation partially used for acquisition Q1-Q3 Q1-Q3 (in €m) 2015 2014 Change − Excluding acquisitions, free cash flow increases EBITDA (excl. FS segment) 515 445 15.9% compared to previous year Change of TWC -181 -138 -30.6% − Acquisitions mainly reflect closed
Slide 18: Financing Structure
Financing Structure Stable financing structure since refinancing in April 2014 Maturity profile as at 30 Sep 2015 Full benefits from refinancing in 2014 (in €m) − Over €20m annual savings from refinancing in 1,045 April 2014 with call of €525m of bonds Last pre-IPO bond callable in February 2016 − R
Slide 19: Net Debt
Net Debt Stable net debt and leverage compared to June 2015 Net debt as at 30 Sep 2015 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt nearly unchanged to June 2015 1.1x1 1.7x2 2.7x2 − Broadly stable pension liabilities 762 2,001 compared to Ju
Slide 20: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 20 KION GROUP AG Update Call Q3 2015 | 5 Nov 2015 © 2015 KION GROUP AG. All rights reserved
Slide 21: Outlook FY 2015
Outlook FY 2015 KION financial guidance for FY 2015 confirmed 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 and consolid
Slide 22: 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) 27 April 2016 Interim report for the period ended 31 March 2016 (Q1 2016) 12 May 2016 Annual G
Slide 23: Disclaimer
Disclaimer This document has been prepared by KION GROUP AG (the “Company”) solely for informational purposes. For the purposes of this notice, this presentation shall mean and include the slides in this document, the oral presentation of the slides by the Company or any person on behalf of the Comp