Slide 1: KION Update Call FY 2013
KION UPDATE CALL FY 2013 Gordon Riske, CEO Thomas Toepfer, CFO Frankfurt, 20 March 2014
Slide 2: Agenda
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 2
Slide 3: Agenda
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 3
Slide 4: 2013: IPO as Strategic Highlight
2013: IPO AS STRATEGIC HIGHLIGHT Listing as historic milestone Share price performance until 19 March 2014 Current shareholder structure [€] 37.0 KION Management KION GROUP AG 36.0 0.9% 0.2% 35.0 €33.78 34.0 33.0 32.0 31.0 Free Float 31.1% 30.0 34.5% KKR and 29.0 Goldman 28.0 Sachs 27.0 First 26.0 p
Slide 5: 2013: Financial Highlights
2013: FINANCIAL HIGHLIGHTS Looking back on a very solid year Order intake close to 2012 figure Revenue on high prior year level – €4,489m; slightly down by -2.2%, mainly due to – €4,495m; down 1.4% vs. 2012 negative FX effect – Continued growth in services – Q4 order intake of €1,193m on prior year
Slide 6: 2013: Operational Highlights
2013: OPERATIONAL HIGHLIGHTS Continuation of profitable growth strategy – Business stabilized at a high level despite weak Western European market Global markets – Western Europe remains flat y-o-y but with recovery in Q4 maintain pace – Further growth in emerging markets; 35% volume share in 2013 O
Slide 7: Current Market Development
CURRENT MARKET DEVELOPMENT Over one million trucks ordered globally in 2013 Global market is up by 7% in 2013 Global market Q1 2012 – Q4 2013 – Global orders at record level Growth y-o-y (r.s.) Order intake in thousand units (l.s.) – Q4 acceleration: upward trend strengthened 300 16% – Major growth
Slide 8: Regional Market Development
REGIONAL MARKET DEVELOPMENT Acceleration in final quarter Year-over-year change in % North America Eastern Europe Q3/13 Q4/13 FY13 Q3/13 Q4/13 FY13 13.5% 10.3% 10.9% Western Europe 7.4% 13.9% 7.8% Q3/13 Q4/13 FY13 -2.0% 10.1% 0.3% China Q3/13 Q4/13 FY13 21.2% 23.4% 14.4% Central/South America Q3/13
Slide 9: KION Performance
KION PERFORMANCE Positive momentum with strong final quarter Order intake 1% above previous year KION global orders – High level of 142,800 units in 2013 in thousands of units – Recovery in H2 with a strong Q4 +1% – Growth driven by WH-trucks and emerging 142 143 market performance 35 37 Continued r
Slide 10: Regional Perspective
REGIONAL PERSPECTIVE Solid finish supported by Western European recovery Regional development Western Europe – Market: accelerates in Q4, however slow Order intake in units: %-change 2013 vs. 2012 demand for CB trucks and a soft German market impact full year outcome Market KION – KION: follows mark
Slide 11: Western Europe
WESTERN EUROPE Core markets on recovery path Market pre- and post crisis Indexed LTM order units (year end 2006=100) – General uplift: positive macro- economic prospects support 120 investment activity – Uneven levels and stages of Germany 100 recovery in core markets U.K. France – Germany: recovery
Slide 12: Selected Product Launches in 2013
SELECTED PRODUCT LAUNCHES IN 2013 Efficient, cutting edge solutions drive customer value Linde 393 EVO Cleanest diesel truck STILL RC 40/41 New torque converter trucks – Major facelift for leading IC – Expansion of IC truck truck series (2.5 to 5.0 ton) portfolio (3.0 ton) – New engines for latest –
Slide 13: Agenda
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 13
Slide 14: Key Financials 2013
KEY FINANCIALS 2013 Solid performance with further improved profitability Order intake1 (€m) Revenues1 (€m) Adj. EBIT1,2 (€m) Net income and growth (%) and growth (%) and margin (%) and growth (%) -2.2% -1.4% 9.0% 9.3% +2.0% FX effect: FX effect: 161 €74m €75m 417 4,590 408 138 4,560 4,489 4,495 LHY
Slide 15: Order Intake by Quarter
ORDER INTAKE BY QUARTER Q4: unit growth vs. negative FX and mix effects on value basis Order intake (thousand units and €m)1 – Variance between order intake growth in units and 39.1 values is driven by 38.0 36.4 37.0 following main factors: 35.8 34.7 – Product mix with strong 31.5 32.1 growth in WH
Slide 16: Revenue Development
REVENUE DEVELOPMENT Continued service growth FY 2013: revenue by product categories Q4 2013: revenue by product categories (€m) -1.4% (€m) -5.9% Services -5.0% +3.5% Services -132 -13.1% +5.0% 28 16 -99 24 11 11 3 4,560 4,495 1,252 1,178 1 1 2012 New After Rental Used & 2013 Q4 2012 New After Rental
Slide 17: Continuing Margin Expansion
CONTINUING MARGIN EXPANSION Strong profitability through price assertion & cost improvement Adjusted EBIT and margin1,2 Key drivers for improved profitability 9.0% 9.3% 9.3% 9.8% – New business volume compensated by higher margins 408 417 – Price discipline for new trucks – New and more profitable p
Slide 18: Adjusted EBIT to Net Income 2013
ADJUSTED EBIT TO NET INCOME 2013 Solid performance in 2013 – 2012 affected by Hydraulics sale, 2013 includes IPO one-offs and tax effects 1 € million 2013 2012 Change Adjusted EBIT1,2 417 408 2.0% – 2012 impacted by Hydraulics effects Non-recurring items -13 182 <-100% – 2013 includes IPO and restru
Slide 19: Cash Flow Performance
CASH FLOW PERFORMANCE Year-on-year development driven by LHY sale in 2012 € million 2013 2012 Change – 2012 incl. ca. €46m of Hydraulics EBITDA and EBITDA (excl. FS segment) 643 855 -24.9% €212m EBIT effect from the sale of Hydraulics Change of trade working capital 17 73 -77.4% – Total TWC: €520m;
Slide 20: Improved Capital Structure
IMPROVED CAPITAL STRUCTURE Deleveraging of group net financial debt from IPO Group net financial debt development 2013 – Net financial leverage reduced to 1.4x2 [€m] following IPO – Further deleveraging from operations 2.6x1 1.4x2 – One-offs due to – IPO and refinancing 1,790 – Tax payments related
Slide 21: Improved Industrial Net Debt
IMPROVED INDUSTRIAL NET DEBT Industrial deleveraging from IPO and end customer leasing growth funded by SALB Industrial net debt at year-end 2013 (LMH and STILL) Industrial net debt [€m] – FS net financial debt slightly below 2012 level of €175m 1.4x 2.8x1 – Internal rental fleet funding by FS incre
Slide 22: Agenda
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 22
Slide 23: Outlook
OUTLOOK Profitable growth in 2014 Market KION Global market volumes are expected to Unlock the full potential of the Western moderately increase European and emerging markets in 2014 – Further stabilisation in Europe – Slight increase in order intake and consolidated revenue compared with 2013 – A s
Slide 24: Agenda
AGENDA 1 Highlights 2013 Gordon Riske 2 Financial update Thomas Toepfer 3 Outlook Gordon Riske 4 Strategy 2020 Gordon Riske 20 March 2014 | FY 2013 Update Call 24
Slide 25: Our Aspiration for KION
OUR ASPIRATION FOR KION … at eye level with major international competitor Growth … on par with capital goods companies and higher margins Capital Profitability efficiency … most profitable player in the industry Resilience … resilient enough to profitably cope with revenue declines as large as in 2
Slide 26: KION Strategy 2020 Addresses All Aspects of the Business
KION STRATEGY 2020 ADDRESSES ALL ASPECTS OF THE BUSINESS Regional growth strategies Aftersales and service business Expand strong position in growth markets like Increase revenue from aftersales North America and China with suitable and services through better use brand strategies, competitive pro-
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Attractive market with growth profile above GDP 2 Global leader – strong home base and well positioned in growth markets 3 Technology leadership drives premium positioning and customer value 4 Robust integrated business model with high contribution from services 5 Profitabili
Slide 28: We Keep the World Moving
WE KEEP THE WORLD MOVING 20 March 2014 | FY 2013 Update Call 28
Slide 29: Annex
ANNEX 20 March 2014 | FY 2013 Update Call 29
Slide 30: Key Financials Q4
KEY FINANCIALS Q4 Solid performance with further improved profitability Order intake1 (€m) Revenues1 (€m) Adj. EBIT1,2 (€m) Net income and growth (%) and growth (%) and margin (%) and growth (%) 9.3% 9.8% -1.0% -5.9% 1,252 1,205 1,193 1,178 127 -0.7% 116 116 57 Q4 2012 Q4 2013 Q4 2012 Q4 2013 Q4 201
Slide 31: Adjusted EBIT to Net Income Q4 2013
ADJUSTED EBIT TO NET INCOME Q4 2013 Significant improvement of net financial expense € million Q4 2013 Q4 2012 Change Adjusted EBIT1,2 116 116 -0.7% – 2012 includes reversal of Hydraulics gain Non-recurring items -1 172 <-100% KION acquisition items -7 -14 -48.9% – 2012 includes EBIT effect from sal
Slide 32: Key Financial Figures by Quarter – December 2013
KEY FINANCIAL FIGURES BY QUARTER – DECEMBER 2013 Order intake (€m)1 Revenue (€m)1 1,252 1,205 1,193 1,168 1,166 1,178 1,145 1,149 1,122 1,105 1,096 1,085 1,089 1,082 1,052 1,046 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
Slide 33: EBIT Development by Quarter
EBIT DEVELOPMENT BY QUARTER Adjusted EBIT (€m)1,2 9.8% 9.3% 9.4% 9.3% – EBIT margin on 9.1% 9.1% 8.5% record level in Q4 8.2% despite lower volume 116 116 and revenues 108 102 101 – All quarters above 100 prior year 93 90 – Increase in adj. EBIT margin is primarily driven by the Contribution Margin
Slide 34: IR Services
IR SERVICES Financial Calendar Date Event 8 May 2014 Report on the first quarter of 2014 (Q1 2014) 19 May 2014 Annual General Meeting 1 Jul 2014 Capital Markets Day 6 Aug 2014 Report on the second quarter of 2014 (Q2 2014) 5 Nov 2014 Report on the third quarter of 2014 (Q3 2014) 20 March 2014 | FY 2
Slide 35: 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