Slide 1: KION GROUP AG Q2 2020 Update Call
KION GROUP AG Q2 2020 Update Call Gordon Riske (CEO), Anke Groth (CFO) Frankfurt, 30 July 2020
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | Q2 2020 Update Call | 30 July 2020
Slide 3: H1 2020 Financial Key Figures
H1 2020 Financial Key Figures KION records strong order intake in H1 2020 thanks to e-commerce boom Order intake Revenue Adj. EBIT1 Free Cashflow €4.4bn €3.9bn €205m -€220m +4.8% y-o-y -10.0% y-o-y -49.8% y-o-y -€188m y-o-y Margin of 5.2% 1. Adjusted for PPA items and non-recurring items 3 KION GROU
Slide 4: COVID-19 – Progress of Action Items as of July 2020
COVID-19 – Progress of Action Items as of 30 July 2020 KION addresses COVID-19 challenges with various measures 1 Workforce Comprehensive health protection measures incl. alignment of workplaces according to distancing rules and “working from home solutions” Further use of personnel measures e.g
Slide 5: Q2 2020 Product Highlights
Q2 2020 Product Highlights KION 2027 strategy drives continuous product innovation Next generation of STILL E-truck RX 60 Dematic Multishuttle wins IFOY1 Award Automated Pallet Storage optimized 1. International Intralogistics and Forklift of the Year Award 5 KION GROUP AG | Q2 2020 Update Call | 30
Slide 6: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 6 KION GROUP AG | Q2 2020 Update Call | 30 July 2020
Slide 7: Industrial Truck Market: All regional markets significantly down in Q2 aside from China
Industrial Truck Market All regional markets significantly down in Q2 aside from China Order intake unit growth y-o-y (in %) North America China Q3/19 Q4/19 Q1/20 Q2/20 Western Europe Q3/19 Q4/19 Q1/20 Q2/20 +0.8% -0.4% +3.6% -16.8% Q3/19 Q4/19 Q1/20 Q2/20 +4.2% +26.8% -21.1% +40.6% -7.7% -4.1% -5.5
Slide 8: Industrial Truck Market: KION with significant decrease in unit orders in Q2
Industrial Truck Market KION with significant decrease in unit orders in Q2 Industrial trucks: Regional development Industrial trucks: Market by region Order intake (in ‘000 units) and growth y-o-y (in %) Order intake FY 2019 (in ‘000 units) Q2 2020 H1 2020 Market KION Market KION Other 15% Western
Slide 9: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 9 KION GROUP AG | Q2 2020 Update Call | 30 July 2020
Slide 10: Industrial Trucks & Services
Industrial Trucks & Services COVID-19 with significant impact on IT&S performance Key financials¹ IT&S new and service business2 (in €bn and change in % y-o-y) Order intake -19.8% -13.9% 3,084 2,655 5.9 6.4 (in €m) 1,573 1,261 5.6 5.0 5.2 4.5 4.7 +11.2% Q2 2019 Q2 2020 H1 2019 H1 2020 +9.3% +6.4% +9
Slide 11: Supply Chain Solutions
Supply Chain Solutions Boost in order intake driven by e-commerce and food & beverage logistics Key financials¹ Recent SCS order intake (in €m) Order intake >100% +57.3% 1,058 1,744 874 839 823 (in €m) 1,058 1,109 598 556 603 686 506 506 Q2 2019 Q2 2020 H1 2019 H1 2020 Q2 Q4 Q2 Q4 Q2 Revenue -1.2% +
Slide 12: KION Group
KION Group SCS drives order intake, operating performance impacted by COVID-19 Key financials¹ +11.6% +4.8% Explanations Order intake 4,197 4,400 (in €m) 2,079 2,319 1 Order book of €4.0bn grew strongly vs. year-end, Q2 2019 Q2 2020 H1 2019 H1 2020 driven by considerable SCS order intake Revenue -16
Slide 13: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income KION with positive net income after first half of 2020 Q2 Q2 H1 H1 (in €m) 2020 2019 Change 2020 2019 Change Explanations Adjusted EBITDA 268 425 -36.9% 619 804 -23.0% 1 Higher NRIs due to D&A -208 -200 -415 -396 impairment of stake in Adjusted EBIT 61 225 -73.0% 205 40
Slide 14: Free Cash Flow Statement
Free Cash Flow Statement FCF impacted by weak operating performance and DAI acquisition H1 H1 (in €m) 2020 2019 Description Reported EBITDA 597 799 1 Reduced cash impact Change in Net Working Capital (NWC) -205 -381 Taxes paid -83 -67 resulting from IT&S and SCS Pension payments -10 -11 2 Higher tax
Slide 15: Net Debt
Net Debt Increased leverage due to weak EBITDA and increased funding needs 30 Jun 31 Dec (in €m) 2020 2019 Description Adjusted LTM EBITDA 1,473 1,658 1 Increase in net financial Adjusted LTM industrial EBITDA1 1,137 1,324 debt to fund working Net financial debt 1,925 1,609 capital needs and DAI Lia
Slide 16: Financing Structure
Financing Structure Current liquidity situation provides good base to weather the crisis Free liquidity and maturity profile as at 30 June 2020 Corporate credit ratings (in €m) • Fitch Ratings: BBB- (Outlook stable, April 2020) and F3 (Commercial Paper Program, April 2020) 2,174 • Standard & Poor‘s:
Slide 17: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 17 KION GROUP AG | Q2 2020 Update Call | 30 July 2020
Slide 18: FY 2020 Outlook
FY 2020 Outlook COVID-19 with considerable impact on FY 2020 financials KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 Noticeable Significant Substantial Order intake 9,112 6,330 2,771 decrease decrease i
Slide 19: Financial Calendar
Financial Calendar Date Event 29 October 2020 Quarterly statement for the period ended 30 September 2020 (Q3 2020) and analyst call Publication of 2020 annual report (FY 2020) 2 March 2021 Financial statements press conference and analyst call 28 April 2021 Quarterly statement for the period ended 3
Slide 20: 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) 2020 2020 2019 2019 2019 2019 2019 2020 2020 2019 2019 2019 2019 2019 2020 2020 2019 2019 2019 2019 2019 Order intake 2,319 2,081 9,112 2,577 2,338
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