Slide 1: KION GROUP AG Q2 2017 Update Call
KION GROUP AG Q2 2017 Update Call Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Wiesbaden, 26 July 2017
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | Q2 2017 Update Call | 26 Jul 2017 © 2017 KION GROUP AG. All rights reserved
Slide 3: Q2 2017 Strategic Highlights
Q2 2017 Strategic Highlights Broad new product line-up released at ProMat 2017 ProMat: Successful Chicago trade show in April − Release of 5 new forklift trucks adapted to the US market − Result of KION’s global platform strategy − First time Linde, Baoli and Dematic were jointly showcasing their
Slide 4: Q2 2017 Financial Highlights
Q2 2017 Financial Highlights KION maintains strong profitable growth − Outlook for FY 2017 confirmed Outlook − Order intake and revenue grew to €2bn in Q2 2017 Growth − IT&S1 segment with continued strong growth − SCS2 segment growth mainly driven by Dematic acquisition − Adj. EBIT3 of €214m results
Slide 5: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5 KION GROUP AG | Q2 2017 Update Call | 26 Jul 2017 © 2017 KION GROUP AG. All rights reserved
Slide 6: Market Development
Market Development Industrial truck market maintains dynamic growth Order intake unit growth y-o-y (in %) North America China Q3/16 Q4/16 Q1/17 Q2/17 Western Europe Q3/16 Q4/16 Q1/17 Q2/17 12.3% 0.9% 6.6% 8.1% Q3/16 Q4/16 Q1/17 Q2/17 22.4% 33.9% 46.3% 36.5% 13.9% 9.7% 10.6% 7.3% Eastern Europe Q3/16
Slide 7: KION Development
KION Development KION grows in line with strong global market Industrial trucks: Regional development Western Europe Order intake (in ‘000 units) and growth y-o-y (in %) – Market: Persisting growth momentum H1 2017 Q2 2017 – KION: Above market in Q2 Market KION Market KION Eastern Europe – Market: S
Slide 8: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 8 KION GROUP AG | Q2 2017 Update Call | 26 Jul 2017 © 2017 KION GROUP AG. All rights reserved
Slide 9: H1 2017 Key Financials
H1 2017 Key Financials Continued strong profitable growth Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +41.4% +49.3% 9.3% 9.6% 3,852 3,828 2,724 2,564 +53.4% +54.8% 367 239 150 97 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 − No mater
Slide 10: Q2 2017 Key Financials
Q2 2017 Key Financials Strong set of results driven by continued momentum Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +38.1% +50.0% 10.5% 10.6% 1,971 2,016 1,427 1,344 +52.2% +69.1% 141 214 108 64 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016 Q2 2017 Q2 2016
Slide 11: Industrial Trucks & Services
Industrial Trucks & Services Significant topline growth in Q2 2017 Key financials Revenue by category Based on FY 2016 financials Order intake +11.1% +9.9% (in €m) 2,635 2,928 1,378 1,514 H1 2016 H1 2017 Q2 2016 Q2 2017 Services New business 45% 55% +9.2% +8.0% Revenue 2,509 2,740 1,312 1,417 (in €m
Slide 12: Supply Chain Solutions
Supply Chain Solutions Strong margin with 10.3% in Q2 2017 Key financials Revenue by category Based on FY 2016 financials Order intake (in €m) 914 452 80 45 H1 2016 H1 2017 Q2 2016 Q2 2017 Services Business solutions 28% 72% Revenue 1,079 596 (in €m) 48 28 H1 2016 H1 2017 Q2 2016 Q2 2017 Adj. EBIT a
Slide 13: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Strong net income increase despite Dematic PPA H1 H1 Q2 Q2 (in €m) 2017 2016 Change 2017 2016 Change Explanations Adjusted EBITDA 589 430 37.0% 326 238 36.8% − Non-recurring items result D&A 222 191 16.4% 112 97 14.7% mainly from expenses relating Adjusted EBIT 367 239
Slide 14: Free Cash Flow Statement
Free Cash Flow Statement Strong free cash flow H1 H1 (in €m) 2017 2016 Change Explanations EBITDA 574 413 39.0% − Operating performance drives Change in Net Working Capital (NWC) -94 -111 15.0% strong free cash flow Taxes paid -54 -56 4.2% Pension payments -17 -12 -44.9% Other -15 -10 -59.3% − NWC i
Slide 15: Net Debt
Net Debt Improvement in net debt and leverage following capital increase Net debt as at 30 Jun 2017 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt decreased by €524m compared to Mar 2017 following 2.0x1 2.6x2 3.5x2 successful capital increase
Slide 16: Financing Structure
Financing Structure Capital increase further improves maturity profile Pre capital increase as at 31 March 2017 Post capital increase as at 30 June 2017 (in €m) (in €m) 1,000 1,004 1,000 906 258 160 536 350 270 746 237 746 237 27 27 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2017 2018 20
Slide 17: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 17 KION GROUP AG | Q2 2017 Update Call | 26 Jul 2017 © 2017 KION GROUP AG. All rights reserved
Slide 18: FY 2017 Outlook
FY 2017 Outlook Guidance detailed by segment KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 Order intake 5,833 7,800 – 8,250 5,383 5,450 – 5,600 431 2,350 – 2,650 Revenue 5,587 7,500 – 7,950 5,203 5,300 –
Slide 19: Financial Calendar
Financial Calendar Date Event 26 July 2017 Interim report for the period ended 30 June 2017 (Q2 2017) and analyst call 26 October 2017 Quarterly statement for the period ended 30 Sep 2017 (Q3 2017) and analyst call Financial statements press conference and analyst call 1 March 2018 Publication of 20
Slide 20: 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