Kion Group Ag · XETR:KGX
Kion — Investor Presentation (October 2008)
32 slides from Kion's investor presentation, October 2008
Slide 1: KION Group Corporate presentation
KION Group Corporate presentation Wiesbaden, October 2008
Slide 2: Content
Content 1. Overview KION Group 2. Facts & Figures 3. Activities 4. Strategy 5. Summary 2
Slide 3: Excellent business year 2007
Excellent business year 2007 In a strong position for further growth Successful Attractive Strong business year 2007 market environment market position — More than 160,000 — Market growth of 10% to — Pure Play: Focus on industrial trucks sold more than 950,000 units global material handling worldwid
Slide 4: Good start into H1 2008
KION Group Good start into H1 2008 in € m Order intake Revenue 4.592 +9.9% 4.312 4.179 3.909 +10.3% On high level and Growth reflects above level of strong order book 2.383 revenue 2.384 -0.1% 2.072 2.265 +9.3% 2006 2007 H1/07 H 1/08 2006 2007 H1/07 H1/08 EBIT adjusted* Free Cash Flow (before Taxes)
Slide 5: A global player 3 unique brands – one strong group
A global player 3 unique brands – one strong group Linde Material Handling – Global premium brand, #1 in Europe, #2 worldwide – Proven track record as leading innovator – Most profitable brand in the industrial truck market KION Group Share of total sales STILL – European premium brand, leading in E
Slide 6: Global Player and Market Leader in Europe
Global Player and Market Leader in Europe World Rank (2007) Sales in € m Toyota* 4,733 KION 4,312 Jungheinrich 2,001 NACCO 1,985 MCF 1,345 Kalmar 1,343 Crown 1,335 Manitou 1.260 Komatsu 847 Nissan 812 * Incl. BT & Raymond, based on calendar year reporting to allow for comparison Source: Logistik Jou
Slide 7: Attractive market
Attractive market New truck sales outperform global trade New trucks in thousand units World merchandise exports World GDP 953 CAGR* 1998 - 2007 7.6% 857 5.9% 751 706 602 595 3.0% 561 565 532 494 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 – Major beneficiary of global trade – Emerging markets
Slide 8: Global Market Material Handling
Global Market Material Handling Industrial Trucks Market by Region 2007 World Europe 100% = 953,000 units 100% = 402,000 units 100% RoW 4% Germany 19% Asia* 16% France 15% Western Europe 34% China 12% Spain 8% Italy 11% South America 4% UK 8% Russia 7% Eastern Europe 8% Eastern Europe** 12% North Am
Slide 9: Content
Content 1. Overview KION Group 2. Facts & Figures 3. Activities 4. Strategy 5. Summary 9
Slide 10: Financial Highlights 2007
Financial Highlights 2007 €m 2007 2006 +/-% Order intake 4,592 4,179 +9.9% Net sales 4,312 3,909 +10.3% EBITDA (adjusted) 661 597 +10.7% EBITDA margin (adjusted) 15.3% 15.3% EBIT (adjusted) 338 263 +28.5% EBIT margin (adjusted) 7.8% 6.7% +1.1%pts Group result -60 Free Cash Flow 352 194 +81.4% (befor
Slide 11: Financial Highlights H1 2008
Financial Highlights H1 2008 €m H1 2008 H1 2007 +/-% Order intake 2,383 2,384 -0.1% Net sales 2,265 2,072 +9.3% EBITDA (adjusted) 360 320 +12.5% EBITDA margin (adjusted) 15.9% 15.4% +0.5%pts EBIT (adjusted) 190 158 +21.9% EBIT margin (adjusted) 8.4% 7.6% +0.9%pts Group result 29 -134 >100% Free Cash
Slide 12: R&D: Substantial activities to keep competitive edge
R&D Substantial activities to keep competitive edge R&D expenses 2006 - 2007, KION in €m/% of revenues – 930 Employees in R&D 119.0 107.5 – Focus of R&D: 2.8% +10.7% – Modular construction 2.8% – Energy efficiency – Reduction of emissions – New technologies like Fuel Cell – Ergonomics 2006 2007 R&D
Slide 13: Employees
Employees Split by Region (2007 year-end) Split by Function (2007 year-end) 100% = 21,086 Employees 100% = 21,086 Employees Asia 8% RoW 1% Corporate Functions 7% Apprentices 3% Americas 3% R&D 4% Eastern Europe 6% Germany 39% Sales & Production 34% Services 52% Western Europe* 42% * Excluding German
Slide 14: Content
Content 1. Overview KION Group 2. Facts & Figures 3. Activities 4. Strategy 5. Summary 14
Slide 15: Linde Material Handling
Linde Material Handling PureMotion: Exploiting technological leadership Key facts 2007 & Product Portfolio – Order intake 92,000 – Sales 2,726 €m* – Employees 13,039 – Market share world: ~10% – Global premium brand – Development of hydrostatic drive resulted in increased efficiency and lower energy
Slide 16: STILL: First in intralogistics
STILL First in intralogistics Key facts 2007 & Product Portfolio – Order intake 46,000 – Sales 1,419 €m* – Employees 6,618 – Market Share Europe: >10% – European premium brand – Europe-wide service network with over 2000 technicians – Offering a holistic service concept through STILL Partnerplan – S
Slide 17: OM: Value brand targeting growth markets
OM Value brand targeting growth markets Key facts 2007 & Product Portfolio – Order intake 22,000 – Net sales 358 €m – Employees 1,245 – Market Share Southern Europe (IT, ESP, POR, G): ~14% – Market leader in Italy, strong position in Southern Europe – Targeting value segment in growth markets like E
Slide 18: Linde Hydraulics
Linde Hydraulics Proprietary know-how to address external growth Leading supplier – Large field of application for own high technology – Pooling of hydraulics and components business within Linde Hydraulics in 2007 – Improved marketing and distribution of products externally – Global market of aroun
Slide 19: Content
Content 1. Overview KION Group 2. Facts & Figures 3. Activities 4. Strategy 5. Summary 19
Slide 20: Strategy: Focus on growth, efficiency and profitability
Strategy Focus on growth, efficiency and profitability 1 Multi-brand strategy Targets 2 Establishment of group-wide 1. Leading manufacturer common systems and processes 2. Long-term growth 3 Successful continuation of KION > market GoIPO-Program 3. Profitability 4 Tap full market benchmark within po
Slide 21: A state of the art portfolio
1 A state of the art portfolio Full range of products to exploit market potential STILL LMH OM Capacity 1.0t 2.0t 3.0t 4.0t 5.0t 6.0t 7.0t 8.0t 9.0t 10.0t 18.0t 36.0t 42.0t 50.0t – Pallet Trucks – Pallet Stackers – Reach Trucks – Order Picker – Electric Trucks – Diesel and LPG Trucks – Diesel Trucks
Slide 22: KION Group Structure
2 KION Group Structure Matrix of Brands and Functions Group Structure Industrial Business KION Financial Services Product planning, development, KION 3P purchasing KION Components Hydraulic Solutions & other components Production, Logistics, Standards, SixSigma, KION Central Ops Quality, Facility Ma
Slide 23: GoIPO program modules
3GoIPO program 15 modules to work on growth, costs and cash GoIPO Sales growth Reduce costs Cash generation – Sales efficiency and – Purchasing synergies (pro- – Working capital optimization services ductive and non- productive) – Leasing strategy – Pricing – Lean manufacturing (new trucks, spare pa
Slide 24: Growth strategy
4 Growth strategy Tap full market potential to increase foreign share Market share Market size Eastern Europe Asia USA Market growth Growth strategy: – Increase market share where not on an adequate level – Fully benefit of market dynamics of growth areas – Leverage organic growth through introducti
Slide 25: From pure manufacturer to value chain partner
5 From pure manufacturer to value chain partner Technological leading products as door-opener Value RFID Fuel cell Innovations added Process consulting Automation IT Solutions Maintenance and repair Spare parts Fleet management Service Rental service Leasing Straight sale Financing Electrical Diesel
Slide 26: Differentiation through total cost of ownership
6 Differentiation through total cost of ownership Efficient products prove technological leadership Total cost of ownership (indexed, European operator) 100 -19% Energy cost 8 81 6 Innovative products with – Lowest energy Labor cost 61 consumption 45 – Best-in-class ergonomics and precise steering S
Slide 27: Content
Content 1. Overview KION Group 2. Facts & Figures 3. Activities 4. Strategy 5. Summary 27
Slide 28: Summary: Key considerations
Summary Key considerations Leading player in an attractive and growing industry environment Unique set-up to deliver strong efficiency benefits for the customers Occupying whole value chain – thinking beyond producing trucks KION Group Highly determined to exploit full synergy potential within the G
Slide 29: Back-up
Back-up
Slide 30: Group History
Group History Three Brands and 100 Years of Excellence 2006 The brands are placed under one Linde takes Linde takes Linde new roof: over Güldner over STILL takes over KION Group OM Founding of Güldner Motoren- Gesellschaft* Founding of STILL Founding of OM 1900 1910 1920 1930 1940 1950 1960 1970 198
Slide 31: Global Manufacturing Network
Global Manufacturing Network Production facilities Head Office der KION Group Produktionsstandorte LMH STILL OM 31
Slide 32: Presence in more than 100 countries
Presence in more than 100 countries North America Bridgeheads worldwide Europe 100 dealers with 240 17 sales locations in Tightest network in Europe with 270 sales established sales locations Rest of the World locations (branches, exclusive dealers) Asia 60 sales locations in China/Rest of Asia 32