Slide 1: KION GROUP AG Q2 2016 Update Call
KION GROUP AG Q2 2016 Update Call Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Wiesbaden, 27 July 2016
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 Q2 2016 Update Call | 27 Jul 2016 © 2016 KION GROUP AG. All rights reserved
Slide 3: Q2 2016 Financial Highlights
Q2 2016 Financial Highlights KION remains firmly on a path of profitable growth − Order intake value rises by 6.2% to €2,724m in H1 2016 (Q2: €1,427m, +8.3% y-o-y); strong order book at €1,009m − Revenue grows by 5.9% to €2,564m in H1 2016 (Q2: €1,344m, +7.0% y-o-y) − Adjusted EBIT of €239m results
Slide 4: Q2 2016 Strategic Milestone: Acquiring Dematic
Q2 2016 Strategic Milestone KION prepares for the future by acquiring Dematic Transaction highlights Seamless one-shop offering Complementary Acquisition creates unique regional setup player in Intralogistics 4.0 100% 100% Attractive market growth in Americas 5% supply chain automation 12%
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 Q2 2016 Update Call | 27 Jul 2016 © 2016 KION GROUP AG. All rights reserved
Slide 6: Market Development: Europe remains global growth driver
Market Development Europe remains global growth driver Order intake unit growth y-o-y (in %) North America Eastern Europe Q3/15 Q4/15 Q1/16 Q2/16 Q3/15 Q4/15 Q1/16 Q2/16 9.7% -1.8% -0.9% -1.0% Western Europe -8.5% 9.9% 8.4% 28.6% Q3/15 Q4/15 Q1/16 Q2/16 6.2% 13.0% 12.5% 11.3% China Q3/15 Q4/15 Q1/16
Slide 7: Market Development: Continued strong momentum in Western Europe
Market Development Continued strong momentum in Western Europe Markets pre- and post-crisis as at 30 Jun 2016 − Persisting upward Indexed LTM order units (LTM Jan 2007=100) trend in Germany and France 140 Germany − UK market declines in 120 UK Q2 due to slowing investment activity France 100 − Italy
Slide 8: KION Development: KION stays ahead of global market growth
KION Development KION stays ahead of global market growth Regional development Western Europe Order intake (in ‘000 units) and growth y-o-y (in %) – Market: Strong momentum, growth driven by smaller WH-trucks and fleet investments H1 2016 Q2 2016 – KION: Profitable growth on high levels Market KION
Slide 9: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 9 KION GROUP AG Q2 2016 Update Call | 27 Jul 2016 © 2016 KION GROUP AG. All rights reserved
Slide 10: H1 2016 Key Financials
H1 2016 Key Financials Continued momentum across the board Order intake Revenue Adjusted EBIT1 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +6.2% +5.9% 8.7% 9.3% 2,565 2,724 2,421 2,564 +14.1% 210 239 +2.9% 94 97 H1 H1 H1 H1 H1 H1 H1 H1 2015 2016 2015 2016 2015 2016 2015 2016 − Contrib
Slide 11: Q2 2016 Key Financials
Q2 2016 Key Financials Strong growth and operating performance Order intake Revenue Adjusted EBIT1 Net income (in €m) (in €m) (in €m and margin in %) (in €m) +8.3% +7.0% 9.3% 10.5% 1,427 1,256 1,344 1,317 +20.9% 141 +21.9% 116 64 52 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 2015 2016 2015 2016 2015 2016 2015 2016 − C
Slide 12: Revenue: Continued growth in new business and services
Revenue Continued growth in new business and services 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 %) +5.9% +7.0% New business Services New business Services +4.1% +8.2% +5.3% +9.1% 52 2,564 30 1,344 17 8 1
Slide 13: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Net income driven by operating performance H1 H1 Q2 Q2 (in €m) 2016 2015 Change 2016 2015 Change − EBITDA increase Adjusted EBITDA 430 388 10.8% 238 207 15.3% driven by operating D&A 191 178 7.0% 97 90 8.1% performance Adjusted EBIT1 239 210 14.1% 141 116 20.9% − Non-re
Slide 14: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow impacted by Retrotech acquisition and taxes H1 H1 (in €m) 2016 2015 Change − Cash flow supported by good trade working EBITDA (excl. FS segment)1 365 331 10.5% capital (TWC) performance Change of TWC -109 -166 34.0% − Difference in taxes driven by higher tax T
Slide 15: Financing Structure
Financing Structure Credit ratings maintained after Dematic announcement Maturity profile as at 30 Jun 2016 Financing renewed in February 2016 (in €m) − €1.5 billion refinancing with new credit facility reflecting investment grade terms 1,150 − Early redemption of €450 million 6.75% bond − Significa
Slide 16: Net Debt
Net Debt Leverage remains in line with March 2016 Net debt as at 30 Jun 2016 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt increased by €74m compared to Mar 2016 0.8x1 1.4x2 2.6x2 − Net pension liabilities increased by 994 2,102 €133m compare
Slide 17: Pension Liabilities
Pension Liabilities Increase driven by reduced interest rate Net pension liabilities as at 30 Jun 2016 Net pension liabilities mostly Net pension liabilities Discount rate driven by German plans (in €m) (in %) − Large UK plans are fully funded, 1,200 7 with offsetting pension assets 1,000 926 994 6
Slide 18: Agenda
Agenda 1. Highlights Gordon Riske 2. Market Update Gordon Riske 3. Financial Update Thomas Toepfer 4. Outlook Gordon Riske 18 KION GROUP AG Q2 2016 Update Call | 27 Jul 2016 © 2016 KION GROUP AG. All rights reserved
Slide 19: FY 2016 Outlook
FY 2016 Outlook Outlook fully confirmed Market KION − KION expects a slower rate of global market Actuals growth this year (in €m) FY 2015 Guidance FY 2016 − 2015 trend likely to continue Order intake 5,216 5,350 – 5,500 − Sustained rise in Europe and North America Revenue 5,098 5,200 – 5,350 − Furt
Slide 20: Financial Calendar
Financial Calendar Date Event 27 July 2016 Interim report for the period ended 30 June 2016 (Q2 2016) and analyst call 27 October 2016 Interim report for the period ended 30 September 2016 (Q3 2016) and analyst call Financial statements press conference and analyst call 2 March 2017 Publication of 2
Slide 21: 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