Kion Group Ag · XETR:KGX
Kion — Q3 2023 Earnings Presentation
24 slides from Kion's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Update Call
KION GROUP AG Q3 2023 Update Call Rob Smith (CEO), Christian Harm (CFO) Frankfurt, 26 October 2023
Slide 2: Agenda
Agenda 1. Summary Q3 2023 & ESG Update 2. Financial Update 3. Outlook 2023 & Key Takeaways 2 KION GROUP AG | Q3 2023 Update Call | 26 October 2023
Slide 3: Q3 2023 Key Financial Figures
Q3 2023 Key Financial Figures Strong Q3 23 performance driven by ITS segment Order intake Order Book Revenue Adj. EBIT1 Free cash flow EPS €2.6bn €6.6bn €2.7bn €224m €101m €0.61 +4% yoy -14% yoy +1% yoy >100% yoy +€481m yoy >100% yoy -8% qoq -1% qoq -4% qoq +16% qoq -€23m qoq +12% qoq Margin of 8.2%
Slide 4: Leadership successions position KION well to drive profitable growth strategy
Leadership successions position KION well to drive profitable growth strategy Changes effective January 1, 2024 Michael Larsson Ching Pong Quek appointed to the Executive Board as to add role of Chief Technology Officer President KION Supply Chain Solutions1 (CTO)2 to his existing responsibilities a
Slide 5: Q3 2023 ESG Update
Q3 2023 ESG Update Consistently executing on our ESG roadmap 1 2 1 AAA @MSCI ESG Ratings – KION now among the Top 10% of the industry 2 KION Group closes recycling loop for Li-ion batteries with Li-Cycle’s plant inauguration 3 3 Focus on circularity: STILL opens fourth refurbishment center in Europe
Slide 6: Agenda
Agenda 1. Summary Q3 2023 & ESG Update 2. Financial Update 3. Outlook 2023 & Key Takeaways 6 KION GROUP AG | Q3 2023 Update Call | 26 October 2023
Slide 7: ITS – Key Financials
ITS – Key Financials Back to double digit adj. EBIT margins 1 Change Change (in €m) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 yoy qoq Order intake (in ‘000 units) 53.5 41.0 59.4 62.3 53.0 -1% -15% Order intake 1,905 1,694 1,957 2,001 1,757 -8% -12% Order book 4,258 3,818 3,757 3,604 3,366 -21% -7% Rev
Slide 8: SCS – Key Financials
SCS – Key Financials Order intake remained at the Q2 level supported by a large order 1 Change Change (in €m) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 yoy qoq Order intake 614 882 497 873 872 +42% -0% Of which E-Commerce (%)2 1% 4% 29% 53% 7% Order book 3,477 3,327 3,000 3,154 3,338 -4% +6% Revenue 8
Slide 9: KION Group – Key Financials
KION Group – Key Financials KION Group improves profitability for the fourth consecutive quarter 1 Change Change (in €m) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 yoy qoq Order intake 2,517 2,536 2,444 2,864 2,621 +4% -8% Order book 7,697 7,078 6,687 6,682 6,634 -14% -1% Revenue 2,706 2,893 2,781 2,83
Slide 10: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Higher net financial expenses and taxes partly offset improved adj. EBIT Change Change (in €m) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 yoy qoq Comments Adj. EBITDA 135 325 390 436 463 Net financial expenses >100% +6% 1 D&A -236 -243 -234 -244 -239 substantially higher d
Slide 11: Cash Flow Statement
Cash Flow Statement Third consecutive triple-digit positive FCF in the quarter Free cash flow Q3 2023 Comments (in €m) 121 -133 216 1 NWC build-up due to higher 197 22 10 inventories (work in progress) 1 2 -119 101 and lower trade payables, partly 4 -39 compensated by a favorable 34 -27 development
Slide 12: Net Debt
Net Debt Higher LTM adj. EBITDA leads to substantially improved leverage ratios Indebtedness and leverage1 ratios as at 30 September 2023 Comments (in €m) 2 2.1x 1 Positive free cash flow in 2 Q3 partially used for 1.7x 3,376 repayment of financial debt, 579 reducing net financial debt 2,798 by €34m
Slide 13: Agenda
Agenda 1. Summary Q3 2023 & ESG Update 2. Financial Update 3. Outlook 2023 & Key Takeaways 13 KION GROUP AG | Q3 2023 Update Call | 26 October 2023
Slide 14: FY 2023 Outlook
FY 2023 Outlook Guidance adjusted KION Group Industrial Trucks & Services Supply Chain Solutions (in €m) Old Updated Old Updated Old Updated Revenue ≥ 11,400 ≥ 11,200 ≥ 8,200 ≥ 8,200 ≥ 3,200 ≥ 3,000 Adj. EBIT ≥ 680 ≥ 780 ≥ 730 ≥ 830 ≥ 65 ≥ 55 FCF ≥ 615 ≥ 660 ROCE (%) ≥ 6.0 ≥ 7.0 ITS: Favorable mater
Slide 15: Key Takeaways
Key Takeaways Outlook for FY 2023 for KION Group adjusted Leadership succession effective 2024 Well-positioned to drive profitable growth strategy going forward KION Group improves profitability for the fourth consecutive quarter in both operating segments ITS and SCS as well as in the Group Benefit
Slide 16: Q & A Session
Q & A Session 16 KION GROUP AG | Q3 2023 Update Call | 26 October 2023
Slide 17: Appendix
Appendix
Slide 18: FY 2023 Expectation – Housekeeping Items
FY 2023 Expectation – Housekeeping Items Non-recurring items1 Operating Capex2 … between -€10m to -€20m … between -€450m to -€500m PPA R&D spending3 … around -€93m to -€96m … around 3% of group revenue Net financial expenses updated from -€120m to -€150m … between -€170m to -€190m Dividend policy up
Slide 19: Key Financials
Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions Q3 Q2 Q1 FY Q4 Q3 Q2 Q3 Q2 Q1 FY Q4 Q3 Q2 Q3 Q2 Q1 FY Q4 Q3 Q2 (in €m) 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2022 2022 2022 2022 2023 2023 2023 2022 2022 2022 2022 Order intake 2,621 2,864 2,444 11,708 2,536
Slide 20: Leverage Development and Maturity Profile
Leverage Development and Maturity Profile Leverage ratios improved substantially in Q3 2023 Leverage development1,2 Maturity profile and free liquidity4 as at 30 September 2023 (in €m) 4.0x 3.2x 1,548 2.8x 2.8x 3 1,500 2.5x 2.4x 284 2.4x 2.3x 2.7x 2.1x 2.0x 1.9x 1.6x 1.6x 1.7x 1,000 1.4x 1.4x 715 20
Slide 21: ITS Order Intake
ITS Order Intake Share of electrified products at 90% in Q3 23 Development of KION ITS segment Order intake Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Change yoy Change qoq FY 2020 FY 2021 FY 2022 Change yoy Order intake (in ‘000 units) 53.5 41.0 59.4 62.3 53.0 -1% -15% 198.3 299.4 268.2 -10% Thereof I
Slide 22: Industrial Truck Market and ITS Order Intake
Industrial Truck Market and ITS Order Intake KION global market share improved sequentially again in Q2 23 Industrial Truck Market1 Development of KION ITS segment Region Q3 Q4 FY Q1 Q2 Q3 Regional growth Q3 Q4 FY Q1 Q2 Q3 2 (Change in units yoy) 2022 2022 2022 2023 2023 2023 (Change in units yoy) 2
Slide 23: Financial Calendar
Financial Calendar Date Event 08 November 2023 KION @ ODDO BHF Roadshow, Dublin, Ireland 14 November 2023 KION @ BNPP Exane Roadshow, Milan, Italy 21 November 2023 KION @ DZ Bank Equity Conference, Frankfurt, Germany 28 November 2023 KION @ Deutsche Börse Eigenkapitalforum, Frankfurt, Germany 28 – 2
Slide 24: Disclaimer
Disclaimer This document has been prepared by KION GROUP AG (the “Company”, and together with its consolidated subsidiaries, the "KION Group") solely for informational purposes. This disclaimer shall apply in all respects to the entire presentation (including all slides of this document), the oral p