Slide 1: KION GROUP AG FY 2019 Update Call
KION GROUP AG FY 2019 Update Call Gordon Riske (CEO), Anke Groth (CFO) – Frankfurt, 3 March 2020
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | FY 2019 Update Call | 03 March 2020 © 2020 KION GROUP AG. All rights reserved
Slide 3: FY 2019 Financial Key Figures
FY 2019 Financial Key Figures KION beats expectations for 2019 with strong year end Order intake Revenue Adj. EBIT1 Free cash flow Dividend per share2 €9.1bn €8.8bn €851m €568m €1.30 +5.3% y-o-y +10.1% y-o-y +7.7% y-o-y +€48m y-o-y +8.3% y-o-y Margin of 9.7% 34% payout ratio Outlook for FY 2019 reac
Slide 4: FY 2019 Strategic Highlights
FY 2019 Strategic Highlights Implementing KION 2027 strategy − Launch of new fully connected next gen truck platform Linde 1202 − IQ Virtual as new software addition − Li-ion battery JV with to Dematic IQ − New Dematic solution: BMZ Micro fulfilment − RX60/N20C: Extension − IFOY Award for auto- of E
Slide 5: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 5 KION GROUP AG | FY 2019 Update Call | 03 March 2020 © 2020 KION GROUP AG. All rights reserved
Slide 6: Industrial Truck Market
Industrial Truck Market Q4 as the strongest quarter within 2019 Order intake unit growth y-o-y (in %) North America China Q1/19 Q2/19 Q3/19 Q4/19 FY19 Western Europe Q1/19 Q2/19 Q3/19 Q4/19 FY19 -21.3% -8.5% +0.8% -0.4% -7.6% Q1/19 Q2/19 Q3/19 Q4/19 FY19 +11.2% -4.5% +4.2% +26.8% +8.6% -4.4% -10.4%
Slide 7: Industrial Truck Market
Industrial Truck Market KION finishes FY2019 slightly below the record level from prior year 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) YTD Dec 2019 Q4 2019 Market KION Market K
Slide 8: Supply Chain Solutions Market
Supply Chain Solutions Market Long-term growth drivers and trends remain intact Market growth drivers Growth indicators 2019 E-commerce +11% Global warehouse capex1 Automation +11% Global e-commerce growth2 Digitalization 1. Projected capital expenditure growth for warehousing equipment and technolo
Slide 9: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 9 KION GROUP AG | FY 2019 Update Call | 03 March 2020 © 2020 KION GROUP AG. All rights reserved
Slide 10: FY 2019 Key Financials
FY 2019 Key Financials Both segments with strong growth in new truck and project business Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) +5.3% +10.1% 9.9% 9.7% 8,657 9,112 7,996 8,807 +7.7% 790 851 +10.7% 402 445 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY
Slide 11: Q4 2019 Key Financials
Q4 2019 Key Financials Quarterly performance impacted by reversal of SG&A and R&D phasing Order intake Revenue Adj. EBIT and margin Net income (in €m) (in €m) (in €m and %) (in €m) 11.3% 9.9% +12.7% +2.6% 2,287 2,577 2,225 2,282 -10.5% -32.9% 252 226 158 106 Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q
Slide 12: Industrial Trucks & Services
Industrial Trucks & Services Growth in order intake despite challenging market conditions Key financials FX translation effect +1.9% +1.7% FY Q4 Order intake 6,211 6,330 (in €m) 2019 20191 (in €m) 1,724 1,753 Order intake +4 +5 FY 2018 FY 2019 Q4 2018 Q4 2019 Revenue +5 +6 Revenue +8.2% +1.5% Adjust
Slide 13: Industrial Trucks & Services
Industrial Trucks & Services Services contribute to better resilience IT&S new business and services sales development (in €bn and change in % y-o-y) 6.4 5.9 5.6 5.0 5.2 4.6 4.5 4.7 -6.0% +1.7% +9.8% +2.9% +9.3% +6.4%1 +11.2% Ø 5.6% avg. +5.0% +7.1% +5.6% +3.4% +7.0% +6.1%1 +5.2% services growth FY
Slide 14: Supply Chain Solutions
Supply Chain Solutions Strong topline growth combined with margin improvement Key financials FX translation effect +14.3% +48.0% Order intake FY Q4 2,425 2,771 (in €m) 2019 20191 (in €m) 556 823 Order intake +88 +21 FY 2018 FY 2019 Q4 2018 Q4 2019 Revenue +80 +10 Revenue +15.7% +6.4% Adjusted EBIT +
Slide 15: Supply Chain Solutions
Supply Chain Solutions Further order intake growth acceleration supported by recent quarters Order intake development Eight quarter rolling average order intake1 (in €m) Avg. growth2 +11.3% 649 633 583 590 565 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 1. Value per quarter is th
Slide 16: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Strong increase in EPS supported by operating performance FY FY Q4 Q4 (in €m) 2019 2018 Change 2019 2018 Change Explanations Adjusted EBITDA 1,657 1,555 6.6% 433 457 -5.2% − NRI mainly relates to D&A -807 -765 -208 -205 reorganization measures and Adjusted EBIT 851 790
Slide 17: Free Cash Flow Statement
Free Cash Flow Statement FCF driven by operating performance FY FY (in €m) 2019 2018 Description Reported EBITDA 1,615 1,541 − Lower contract liabilities from Change in Net Working Capital (NWC) -147 -54 SCS business Taxes paid -192 -193 Pension payments -22 -37 − Higher operating capex Other 73 74
Slide 18: Net Debt
Net Debt Improved leverage ratios supported by operating performance 31 Dec 31 Dec (in €m) 2019 2018 Description Adjusted EBITDA 1,658 1,555 – Decrease in net financial debt Adjusted industrial EBITDA1 1,324 1,234 due to reduction of bank liabilities Net financial debt 1,609 1,870 Liabilities from p
Slide 19: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 19 KION GROUP AG | FY 2019 Update Call | 03 March 2020 © 2020 KION GROUP AG. All rights reserved
Slide 20: Strategic Investments in 2020
Strategic Investments in 2020 KION invests in medium and long-term growth New plant and R&D center in China Acquisition of Digital Applications International Limited 20 KION GROUP AG | FY 2019 Update Call | 03 March 2020 © 2020 KION GROUP AG. All rights reserved
Slide 21: FY 2020 Outlook
FY 2020 Outlook Strategic investments to capture mid- and long-term growth 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 Order intake 9,112 9,050 – 9,750 6,330 6,250 – 6,550 2,771 2,800 – 3,200 Revenue 8
Slide 22: COVID-19 – Implications and Situation for KION
COVID-19 – Implications and Situation for KION Status of today Potential implications and risks Current situation at KION − Epidemic assumed to peak in H1 2020, − No KION employee infected so far normalization towards year-end1 − All plants are running, plants in China slightly − GDP impact visible
Slide 23: Financial Calendar
Financial Calendar Date Event 05 March 2020 Capital Markets Day 2020 28 April 2020 Quarterly statement for the period ended 31 March 2020 (Q1 2020) and analyst call 12 May 2020 Annual General Meeting 30 July 2020 Interim report for the period ended 30 June 2020 (Q2 2020) and analyst call 29 October
Slide 24: Key Financials
Key Financials Group figures Industrial Trucks & Services Supply Chain Solutions FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 FY Q4 Q3 Q2 Q1 FY Q4 (in €m) 2019 2019 2019 2019 2019 2018 2018 2019 2019 2019 2019 2019 2018 2018 2019 2019 2019 2019 2019 2018 2018 Order intake 9,112 2,577 2,338 2,079 2,118
Slide 25: 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