Slide 1: KION GROUP AG Q2 2023 Update Call
KION GROUP AG Q2 2023 Update Call Rob Smith (CEO) Christian Harm (CFO) Frankfurt, 27 July 2023
Slide 2: New KION Group CFO Christian Harm
New KION Group CFO Christian Harm 2 KION GROUP AG | Q2 2023 Update Call | 27 July 2023
Slide 3: Agenda
Agenda 1. Summary Q2 2023 & Strategic Highlight 2. Financial Update 3. Outlook 2023 & Key Takeaways 3 KION GROUP AG | Q2 2023 Update Call | 27 July 2023
Slide 4: Q2 2023 Key Financial Figures
Q2 2023 Key Financial Figures Strong momentum accelerates driven by ITS segment Order intake Order Book Revenue Adj. EBIT1 Free cash flow EPS €2.9bn €6.7bn €2.8bn €192m €124m €0.54 -24% yoy -16% yoy +1% yoy +36% yoy +€283m yoy -10% yoy +17% qoq -0% qoq +2% qoq +23% qoq +€19m qoq -1% qoq Margin of 6.
Slide 5: Q2 2023 Strategic Highlight: Net-Zero and SBTi
Q2 2023 Strategic Highlight KION commits to Net-Zero and to the Science Based Targets initiative Green house gas emissions SBTi path to 1.5°C Near-term Net-Zero (schematic) science-based target • Near-term path: linear Long-term science-based • Long-Term: Net-Zero by target 2050 at the latest, multi
Slide 6: Agenda
Agenda 1. Summary Q2 2023 & Strategic Highlight 2. Financial Update 3. Outlook 2023 & Key Takeaways 6 KION GROUP AG | Q2 2023 Update Call | 27 July 2023
Slide 7: ITS – Key Financials
ITS – Key Financials Ongoing agility measures continue to drive strong performance 1 Change Change (in €m) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 yoy qoq Order intake (in ‘000 units) 86.3 53.5 41.0 59.4 62.3 -28% +5% Order intake 2,745 1,905 1,694 1,957 2,001 -27% +2% Order book 4,220 4,258 3,818 3
Slide 8: SCS – Key Financials
SCS – Key Financials Adj. EBIT in line with expectations while order intake recovered from weak Q1 1 Change Change (in €m) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 yoy qoq Order intake 1,022 614 882 497 873 -15% +76% Of which E-Commerce (%)2 21% 1% 4% 29% 53% Order book 3,762 3,477 3,327 3,000 3,154
Slide 9: KION Group – Key Financials
KION Group – Key Financials KION Group accelerates strong momentum driven by ITS segment 1 Change Change (in €m) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 yoy qoq Order intake 3,755 2,517 2,536 2,444 2,864 -24% 17% Order book 7,941 7,697 7,078 6,687 6,682 -16% -0% Revenue 2,802 2,706 2,893 2,781 2,836
Slide 10: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income Higher taxes and net financial expenses offset improved adj. EBIT Change Change (in €m) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 yoy qoq Comments Adj. EBITDA 368 135 325 390 436 +19% +12% 1 Net financial expenses D&A -227 -236 -243 -234 -244 -8% -4% substantially higher
Slide 11: Cash Flow Statement
Cash Flow Statement FCF swing supported by better EBIT and almost stable NWC Free cash flow Q2 2023 Comments (in €m) -11 -23 120 -39 211 1 Low NWC build-up 1 165 2 enabled by further stabilizing 3 -87 124 supply chains in Q2 vs Q1. 1 -36 -25 44 Semi-finished trucks in ITS -19 remained stable <3k uni
Slide 12: Net Debt
Net Debt Leverage ratios improved by one notch sequentially Indebtedness and leverage1 ratios as at 30 June 2023 Comments (in €m) 2 2.7x 1 Positive free cash flow in Q2 mainly used for repayment 2.2x 3,409 of financial debt, reducing net 643 financial debt by €44m 2,767 601 2 RCF-relevant leverage r
Slide 13: Agenda
Agenda 1. Summary Q2 2023 & Strategic Highlight 2. Financial Update 3. Outlook 2023 & Key Takeaways 13 KION GROUP AG | Q2 2023 Update Call | 27 July 2023
Slide 14: FY 2023 Outlook
FY 2023 Outlook Strong development at ITS leads to raised guidance KION Group Industrial Trucks & Services Supply Chain Solutions (in €m) Old Updated Old Updated Unchanged Revenue ≥ 11,200 ≥ 11,400 ≥ 8,000 ≥ 8,200 ≥ 3,200 ≥ 3,200 Adj. EBIT ≥ 615 ≥ 680 ≥ 665 ≥ 730 ≥ 65 ≥ 65 FCF ≥ 565 ≥ 615 ROCE (%) ≥
Slide 15: Key Takeaways
Key Takeaways We raise our FY 2023 guidance based on strong ITS performance ITS segment profitability is driven by favorable material availability and commercial and operational agility measures In SCS ongoing measures to increase agility, resilience, and profitability are well underway to show effe
Slide 16: Q & A Session
Q & A Session 16 KION GROUP AG | Q2 2023 Update Call | 27 July 2023
Slide 17: Appendix
Appendix
Slide 18: FY 2023 Expectation – Housekeeping Items
FY 2023 Expectation – Housekeeping Items Updated from Non-recurring items1 -€5m to -€15m 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 -€90m to -€120m … between -€120m to
Slide 19: 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) 2023 2023 2022 2022 2022 2022 2022 2023 2023 2022 2022 2022 2022 2022 2023 2023 2022 2022 2022 2022 2022 Order intake 2,864 2,444 11,708 2,536 2,517
Slide 20: Leverage Development and Maturity Profile
Leverage Development and Maturity Profile Leverage ratios peaked in Q3 2022 Leverage development1,2 Maturity profile and free liquidity as at 30 June 2023 (in €m) 4.0x 3.2x 1,600 2.8x 2.8x 2.7x 3 2.5x 226 1,500 2.4x 2.4x 2.3x 2.2x 2.7x 2.0x 1.9x 1.6x 1.6x 1,000 1.4x 1.4x 1.2x 700 0.9x 550 20 1,374 1
Slide 21: ITS Order Intake
ITS Order Intake Share of electrified products at 92% in Q2 23 Development of KION ITS segment Order intake Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Change yoy Change qoq FY 2020 FY 2021 FY 2022 Change yoy Order intake (in ‘000 units) 86.3 53.5 41.0 59.4 62.3 -28% +5% 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 Market is slowing down but KION Group improves OI sequentially in Q2 2023 Industrial Truck Market1 Development of KION ITS segment Region Q2 Q3 Q4 FY Q1 Q2 Regional growth Q2 Q3 Q4 FY Q1 Q2 2 (Change in units yoy) 2022 2022 2022 2022 2023 2023 (Change in
Slide 23: Material Handling Market
Material Handling Market Long-term attractive markets after being temporary weaker in 2023 Supply Chain Solutions Market1 Industrial Trucks & Services Market1 Revenue estimate in €bn and CAGR in % Revenue estimate in €bn and CAGR in % +5% ~66 +9% 57 ~55 ~57 ~51 40 ~36 ~38 2022 2023e 2024e 2027e 2022
Slide 24: Financial Calendar
Financial Calendar Date Event 05 September 2023 KION @ Exane BNP Paribas Roadshow, Milan, Italy 06 September 2023 KION @ Commerzbank & ODDO BHF German Corporate Conference, Frankfurt, Germany 08 September 2023 KION @ Morgan Stanley Industrial CEOs Unplugged Conference, London, UK 15 September 2023 K
Slide 25: 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