Slide 1: FY 2016 Update Call
KION GROUP AG FY 2016 Update Call Gordon Riske (CEO), Dr Thomas Toepfer (CFO) – Heusenstamm, 2 March 2017
Slide 2: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 2 KION GROUP AG | FY 2016 Update Call | 2 Mar 2017 © 2017 KION GROUP AG. All rights reserved
Slide 3: FY 2016 Strategic Highlights
FY 2016 Strategic Highlights Dematic acquisition as transformational milestone Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 February: June: July: November: January: Renewed financing KION to become a Successful capital Acquisition of First investment with improved terms global leader in increase Dematic
Slide 4: Dematic Acquisition
Dematic Acquisition KION enters a new era by acquiring Dematic Transaction highlights Seamless one-stop offering Complementary regional − Acquisition creates unique setup player in Intralogistics 4.0 100% 100% − Dematic EV1 of $3.25bn Americas 12% 5% − Initial run-rate synergies of APAC 1-2% o
Slide 5: Dematic Acquisition: unique and complete material handling offering
Dematic Acquisition Creating a unique and complete material handling offering Material handling solutions for every part of the warehouse Dematic adds best-in-class automation WH- Fleet data Supply solutions Storage1 Sortation IC-trucks trucks mgmt. chain SW2 − Dematic offers comprehensive range of
Slide 6: Dematic Acquisition: Monterrey ramp-up measures
Dematic Acquisition Monterrey ramp-up measures in place and effective Dematic’s main production locations in the Americas Monterrey production is ramping up Grand Rapids, USA − Focus on process optimisation for kitting and assembly − Close integration of local suppliers Close management attention as
Slide 7: FY 2016 Financial Highlights
FY 2016 Financial Highlights KION Group hits new highs to achieve outlook Outlook − Outlook for FY 2016 excluding Dematic is fully achieved across all KPIs − Order intake and revenue excluding Dematic grew by 6.5% resp. 4.5% y-o-y in Growth FY 2016 to €5.6bn resp. €5.3bn − Adj. EBIT1 margin excludin
Slide 8: FY 2016 Segmentation
FY 2016 Segmentation Annual report reflects new segmentation around trucks and solutions Industrial Trucks & Services Supply Chain Solutions Corporate Services − Industrial truck business including − Supply chain and warehouse − Internal service entities financial services activities automation − Lo
Slide 9: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 9 KION GROUP AG | FY 2016 Update Call | 2 Mar 2017 © 2017 KION GROUP AG. All rights reserved
Slide 10: Industrials Trucks & Services: Market Development
Industrials Trucks & Services: Market Development Positive development across all regions in Q4 Order intake unit growth y-o-y (in %) North America China Q1/16 Q2/16 Q3/16 Q4/16 Western Europe Q1/16 Q2/16 Q3/16 Q4/16 -0.9% -1.0% 11.8% 0.6% Q1/16 Q2/16 Q3/16 Q4/16 6.8% -1.2% 22.4% 33.9% 12.5% 11.3% 1
Slide 11: Industrials Trucks & Services: KION Development
Industrials Trucks & Services: KION Development KION finishes successful year with record final quarter Industrial trucks: Regional development Western Europe Order intake (in ‘000 units) and growth y-o-y (in %) – Market: Good momentum, growth driven by WH-trucks FY 2016 Q4 2016 – KION: Strong growt
Slide 12: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 12 KION GROUP AG | FY 2016 Update Call | 2 Mar 2017 © 2017 KION GROUP AG. All rights reserved
Slide 13: FY 2016 Key Financials
FY 2016 Key Financials Strong set of financials – Dematic consolidated for Nov/Dec 2016 Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +11.8% +9.6% 9.5% 9.6% 5,833 5,098 5,587 5,216 +11.3% 537 +11.3% 483 221 246 FY 2015 FY 2016 FY 2015 FY 2016 FY 2015 FY 2
Slide 14: Q4 2016 Key Financials
Q4 2016 Key Financials Strong finish to the year – Dematic consolidated for Nov/Dec 2016 Order intake Revenue Adj. EBIT and margin Net Income (in €m) (in €m) (in €m and %) (in €m) +27.6% +20.7% 10.5% 9.8% 1,783 1,740 1,397 1,441 +12.8% +5.8% 152 171 77 82 Q4 2015 Q4 2016 Q4 2015 Q4 2016 Q4 2015 Q4 2
Slide 15: FY 2016 Segment Financials: Industrial Trucks & Services
FY 2016 Segment Financials: Industrial Trucks & Services Margin improvement to 11.3% in FY 2016 Key financials Revenue by category Based on FY 2016 financials Order intake +4.6% (in €m) 5,146 5,383 FY 2015 FY 2016 Services New business 45% 55% Revenue +3.1% (in €m) 5,045 5,203 FY 2015 FY 2016 Adj. E
Slide 16: FY 2016 Segment Financials: Supply Chain Solutions
FY 2016 Segment Financials: Supply Chain Solutions New segment includes Dematic and Egemin with Retrotech Key financials Revenue by category Based on FY 2016 financials Order intake (in €m) 431 49 FY 2015 FY 2016 Services Business solutions 28% 72% Revenue (in €m) 366 33 FY 2015 FY 2016 Adj. EBIT an
Slide 17: Dematic Key Financials
Dematic Key Financials FY 2016 margin impacted by Monterrey ramp-up Dematic financials1 Relevant explanations Q1-Q3 Q1-Q3 Nov-Dec Nov-Dec (in €m) 2015 2016 2015 2016 − Q4 seasonally weaker due to Christmas peak season at Dematic’s customers Order intake 1,330 1,468 317 280 Revenue 1,233 1,337 251 26
Slide 18: Adjusted EBITDA to Net Income
Adjusted EBITDA to Net Income NRI and PPA driven by Dematic acquisition FY FY Q4 Q4 (in €m) 2016 2015 Change 2016 2015 Change Relevant explanations Adjusted EBITDA 932 850 9.6% 278 250 11.0% − Non-recurring items result mainly D&A 394 367 7.4% 106 98 8.4% from expenses relating to the Adjusted EBIT
Slide 19: Free Cash Flow Statement
Free Cash Flow Statement Free cash flow impacted by Dematic acquisition FY FY (in €m) 2016 2015 Change Relevant explanations EBITDA 889 824 7.9% − TWC increase due to volume Change of TWC -110 -83 -32.5% growth Taxes paid -109 -85 -28.2% Pension payments -21 -24 14.7% − Difference in taxes driven by
Slide 20: Net Debt
Net Debt Leverage reflects Dematic acquisition financing Net debt as at 31 Dec 2016 Net debt development (in €m and leverage as multiple of LTM adjusted EBITDA) − Group net financial debt increased by €2,330m compared to Dec 2015 2.7x1 3.4x2 4.4x2 following Dematic acquisition 979 4,254 − Net pensio
Slide 21: Financing Structure
Financing Structure Promissory notes issuance substantially extends maturity profile Pre notes issuance Post notes issuance (in €m) (in €m) 1,543 1,000 1,000 906 588 212 350 350 212 694 237 27 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 SFA tranche Cash
Slide 22: Agenda
Agenda 1. Highlights 2. Market Update 3. Financial Update 4. Outlook 22 KION GROUP AG | FY 2016 Update Call | 2 Mar 2017 © 2017 KION GROUP AG. All rights reserved
Slide 23: FY 2016 Outlook Comparison
FY 2016 Outlook Comparison Guidance excluding Dematic achieved for all KPIs FY 2016 FY 2016 (in €m) FY 2015 Outlook FY 2016 (incl. Dematic) (excl. Dematic) Order intake 5,216 5,350 – 5,500 5,833 5,553 Revenue 5,098 5,200 – 5,350 5,587 5,328 Adj. EBIT 483 510 – 535 537 527 FCF 333 280 – 320 -1,
Slide 24: FY 2017 Outlook
FY 2017 Outlook Guidance detailed by segment KION Group Industrial Trucks & Services Supply Chain Solutions Outlook Outlook Outlook (in €m) FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017 Order intake 5,833 7,800 – 8,250 5,383 5,450 – 5,600 431 2,350 – 2,650 Revenue 5,587 7,500 – 7,950 5,203 5,300 –
Slide 25: Financial Calendar
Financial Calendar Date Event Financial statements press conference, analyst call and analyst conference 2 March 2017 Publication of 2016 annual report (FY 2016) 27 April 2017 Interim notification for the period ended 31 March 2017 (Q1 2017) and analyst call 11 May 2017 Annual General Meeting 26 Jul
Slide 26: Key Financials: Segment figures by quarter
Key Financials Segment figures by quarter Industrial Trucks & Services Supply Chain Solutions (in €m) Q1 2016 Q2 2016 Q3 2016 Q4 2016 (in €m) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Order intake 1,257 1,378 1,284 1,464 Order intake 35 45 38 313 Revenue 1,197 1,312 1,252 1,442 Revenue 20 28 27 291 Adjusted E
Slide 27: 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